ENCINO - LoopNet...1 Tarzana Medical Urgent Care -0.2 Miles 2 Providence Tarzana Medical Center -0.9...

A 48,590 SF MEDICAL OFFICE BUILDING WITH SIGNIFICANT RENTAL UPSIDE IDEALLY LOCATED IN THE AFFLUENT LOS ANGELES

COUNTY SUB-MARKET OF ENCINO, CALIFORNIAMEDICAL TOWER17 8 3 5 V E N T U R A B O U L E V A R D E N C I N O , C A 9 13 16

ENCINO

BRANDON MICHAELSSenior Managing Director of InvestmentsSenior Director, National Retail GroupTel: (818) 212-2794Fax: (818) [email protected]: CA #01434685www.BrandonMichaelsGroup.com

16830 Ventura Blvd. Suite 100, Encino, CA 91436www.marcusmillichap.com

MEDICAL TOWER17 8 3 5 V E N T U R A B O U L E V A R D E N C I N O , C A 9 13 16

ENCINO

INVESTMENT ADVISORS:

TEAM MEMBERSSean BrandtBen BrownsteinNicole CottrellDana LiuLauren SacklerSteven SchechterAustin Sreden

1EXECUTIVE SUMMARY

TABLE OF CONTENTS

2FINANCIAL ANALYSIS

3COMPARABLE ANALYSIS

4AREA OVERVIEW

4

5

EXECUTIVE SUMMARY

ENCINO• CA


ENCINO

8 ENCINO MEDICAL TOWER | OFFERING MEMORANDUM | THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP


ENCINO

EXECUTIVE SUMMARY

9ENCINO MEDICAL TOWER | OFFERING MEMORANDUM | THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP

The Brandon Michaels Group of Marcus & Millichap has been selected to market for sale the Encino Medical Tower, a 48,590 square foot medical office building located at 17835 Ventura Boulevard in the high-end, affluent LA County sub-market of Encino, CA.

Encino Medical Tower is ideally located along Ventura Boulevard, on the north side of the Boulevard, just west of White Oak Avenue and just east of Zelzah Avenue. The subject property consists of a three story, class B office building with 100 surface parking spaces ideally situated on 53,008 square feet of land consisting of two separate parcels. The front parcel is 40,144 square feet of land zoned C4-1VL and RA-1. The rear parcel is 12,864 square feet of land zoned RA.

The Encino Medical Tower has undergone a medical conversion in which 82% of the building (40,000 SF) is allowed for medical use. Encino Medical Tower is currently 81% occupied to general office tenants, with an average rent of $2.26 per SF. Medical rents in the immediate designated area average $3.44 per square foot. The average unit size is 1,970 square feet with the largest unit being 4,285 square feet. These are ideal suite sizes to serve the local tenant mix and require minimal tenant improvement costs between tenants. With 53% of the existing leases expiring by 2020 and 93% of the current leases expiring by 2022, this offering presents a unique opportunity to acquire a value-add medical office building well located along Ventura Boulevard in Encino. The flexibility in the current lease structure combined with the current occupancy creates an ideal opportunity for an investor or owner-user Buyer.

The Encino Tower has recently undergone significant upgrades and improvements which create a positive business environment and will attract top tenants. Improvements include completely remodeled common areas, brand new entry door security with access cards, brand new lighting in the common areas, a brand new lobby with back painted glass, and a laundry list of additional improvements.


ENCINO A 48,590 SF MEDICAL OFFICE BUILDING WITH SIGNIFICANT RENTAL UPSIDE IDEALLY LOCATED IN THE AFFLUENT LOS ANGELES

COUNTY SUB-MARKET OF ENCINO, CALIFORNIA ON PRESTIGIOUS VENTURA BOULEVARD.


LOCATION OVERVIEW


PROVIDENCE TARZANA MEDICAL CENTER PIERCE COLLEGE WOODBURY UNIVERSITY CAL STATE NORTHRIDGE

ENCINO, CALIFORNIA IS AN URBAN PARADISE WELL-KNOWN FOR ITS AFFLUENT DEMOGRAPHIC, DENSE POPULATION,

AND MULTI-MILLION DOLLAR HOMES

The Encino Tower benefits from an amenity rich Encino, California location offering a plethora of dining and entertainment options along world renowned Ventura Boulevard. Ventura Boulevard is the main commercial thoroughfare through the San Fernando Valley, and the world’s longest avenue of contiguous business. Encino is a dense San Fernando Valley neighborhood that benefits from strong local business and a wide array of housing options. The dense immediate submarket boasts a population of over 468,000 people within a five-mile radius. The affluent area has an average household income of over $103,000 within a three-mile radius, and over 163,000 households within five miles, 10% with household incomes north of $200,000.

Homes South of Ventura Boulevard range from $2 million to $50 million and offer some of the most expansive residences in Southern California. The city is the home of numerous celebrities, executives, athletes, and entertainers. The local economy provides jobs in health care, social services, and professional services. A host of athletes, celebrities, and professionals call Encino home. The local economy provides jobs primarily in health care, social services, and professional services. There are over 26,000 businesses and over 212,000 employees within a five-mile radius, further encapsulating the strength of the location.

The San Fernando Valley has experienced consistent population growth since 2000, and population growth is projected for the foreseeable future. Valley residents, on average, are more educated than other parts of the City and County with 118,575 people with graduate or professional degrees and another 239,705 with bachelor’s degrees. Since 2000, the Valley has had a 16.6% increase (59,689) in those with bachelor’s or advanced degrees. Valley residents have access to renowned colleges and universities, such as California State University, Northridge, Woodbury University, Pierce College, Valley College, and Mission College.


ENCINO

12 ENCINO MEDICAL TOWER | OFFERING MEMORANDUM

INVESTMENT HIGHLIGHTS

EXCELLENT ENCINO, CA LOCATION

▶ Ideally located just west of White Oak Avenue along prestigious Ventura Boulevard

▶ 130 feet of linear frontage along Ventura Boulevard

▶ Amenity rich submarket with multiple restaurants, retailers, office, and hotels in the immediate area

▶ Close proximity to the 101 Ventura Freeway

▶ Centralized San Fernando Valley location with easy access to Downtown Los Angeles, the Westside of Los Angeles, Warner Center, and all major airports

HIGH-END MEDICAL OFFICE BUILDING

▶ 48,590 square foot medical office building of which 40,000 square feet (82%) is designated for medical use

▶ 53,008 square feet of land

▶ Memorable brick façade with excellent window lines

▶ Upgraded lobby and corridors

▶ Significant improvements and upgrades create a positive business environment

▶ Excellent Ingress and egress

▶ Secured parking with easy access


ENCINO

13 THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP

VALUE-ADD OPPORTUNITY WITH A MULTITUDE OF OPTIONS

▶ Current office rents average $2.26 per square foot

▶ Medical rents in the immediate area average $3.44 per square foot

▶ 93% of the existing leases expire by 2022

▶ 81% current occupancy and flexibility in lease expiration creates a unique opportunity for an investor or Owner-User Buyer

AFFLUENT AND DENSE LOS ANGELES COUNTY SUB-MARKET

▶ Average household income over $103,000

▶ Dense immediate population with over 468,000 people within a five mile radius

▶ There are over 163,000 households within five miles, 10% with household incomes north of $200,000.

▶ There are over 26,000 businesses and over 212,000 employees within a five-mile radius, further encapsulating the strength of the location.


IMPROVEMENTS & UPGRADES• Full remodel of 6 bathrooms• Recoating of roof with elastomeric coating• Complete remodeling of all common areas• Complete re-carpeting throughout the building• New office entry door, handles, and locks• Retiling of common areas• Remodeling of interior elevators• Full remodel of lobby with back painted glass• Brand new landscaping in the front and rear of the property• Entry door security with access card• Securing of rear parking area with gates• All new lighting in the common areas and lobby• New computerized directory system• Installation of timers for all A/C units

NEW LIGHTINGAll New Lighting in

Common Areas

REMODELED COMMON AREASComplete Remodeling of

all Common Areas

ENTRY DOOR SECURITYEntry Door Security

with Access Card

PAINTED GLASS DOORSFull Remodel of Lobby with

back Painted Glass

IMPROVEMENTS AND UPGRADES



Two of Southern California's leading nonprofit healthcare organizations have agreed to create a joint venture that will own and operate Providence Tarzana Medical Center.

Providence St. Joseph Health and Cedars-Sinai are coming together to enhance access to highly skilled medical care, specialized services and advanced health programs for the Tarzana community. The medical center's new name will be Providence Cedars-Sinai Tarzana Medical Center. Providence and Cedars-Sinai will jointly continue the build-out and redevelopment of the Tarzana campus, in-cluding a new patient-care tower with all private rooms, an expanded Emergen-cy Department, new diagnostic and treatment services, and enhanced outpatient and ambulatory services already under development. When complete in 2022, the new hospital will be a destination medical center for the area.

The joint venture will expand primary and specialty care services on the Provi-dence Tarzana campus as well as enhance other programs, including heart, can-cer and women's services. For particular services, such as those serving trans-plant patients, the partnership will provide a continuum of care that ensures access to high-quality care during every phase of the healing process.

P R O V I D E N C E S T . J O S E P H A N N O U N C E S C O - O W N E R S H I P D E A L W I T H C E D A R S - S I N A I AT TA R Z A N A H O S P I TA L

Source: Daily News, cshs.org

MEDICAL EXPANSION IN THE IMMEDIATE AREA

PROVIDENCE TARZANA MEDICAL CENTER

0.9 Miles From Encino Medical Tower


ENCINO

PROVIDENCE CEDARS-SINAI TARZANA MEDICAL CENTER▶ A $540 Million Expansion Project Located 1.1 Miles from Encino Medical Tower

▶ Two of Southern California's Leading Healthcare Organizations Agreed to Create a Joint Venture

▶ Project is Underway and is Expected to be Completed by 2022▶ Providence Tarzana Medical Center and Cedars-Sinai Hospital Were Ranked Within

the Nation’s top 50 Hospitals by Healthgrades in 2018


Encino Medical Tower is located approximately 0.9 miles from Providence Tarzana Medical Center, 2.5 miles from Encino Medical Center, 4.3 miles from Dignity Health Northridge Hospital, 4.1 miles from Kaiser Permanent Woodland Hills, and 8.6 from West Hills Hospital. There are multiple senior assisted living facilities nearby, including AvantGarde Senior Living in Tarzana, Encino Terrace Senior Living in Encino, Brookdale South in Tarzana, and Belmont Village Senior Living in Tarzana and Encino.

1 Tarzana Medical Urgent Care -0.2 Miles

2 Providence Tarzana Medical Center -0.9 Miles

3 Encino Hospital Medical Center -2.5 Miles

4 Dignity Health Northridge Hospital - 4.3 Miles

5 Kaiser Permanente-Woodland Hills -4.1 Miles

6 Sherman Oaks Hospital -5.8 Miles

7 Valley Presbyterian Hospital -5.8 Miles

8 West Hills Hospital -8.6 Miles

9 Rejuvenation Surgicenter -0.9 Miles

10 Center For Comprehensive Health -0.4 Miles

11 Encino Urgent Care -0.2 Miles

12 California Center For Plastic -2.7 Miles

13 Woodland Hills Urgent Care -5.7 Miles

14 AIM Healthcare Foundation -4.6 Miles

15 Valley Healthcare -4.8 Miles

16 Kidney Center Inc -4.8 Miles

17 Burn Center Recovery -4.8 Miles

18 AHF Health Care Ctr -4.8 Miles

19 Warner Center Psychiatric Med -4.9 Miles

20 Northridge Urgent Care -5.0 Miles

Encino Hospital Medical Center is a 150-bed, not-for-profit, acute-care community hospital, and a member of the Prime Healthcare Foundation, a 501(c)3 public charity. It is staffed with 330 physicians and 420 professional support staff. Servicing the greater San Fernando Valley, Encino Hospital provides 24/7 emergency services in addition to a wide range of highly specialized medical, surgical and diagnostic services.

Providence Tarzana Medical Center has served a rapidly growing San Fernando Valley community since 1973. The 249-bed hospital is known in the area as a leading source for quality care, delivering babies, providing Emergency life-saving care and performing the surgeries and other procedures to improve our patients’ health. Providence Tarzana has received numerous awards from leading national healthcare quality rating organizations. Northridge Hospital Medical Center is a 409-bed not-for-profit hospital, that has earned the Gold Seal of Approval from The Joint Commission. It is ranked as one of America’s 100 Best Hospitals in the United States by Healthgrades—a national healthcare ratings organization. It is now celebrating 60 years of growing with the community, evolving into a 409-bed nonprofit facility serving 2 million residents.

Kaiser Permanente is an American integrated managed care consortium, based in Oakland, California, United States, founded in 1945 by industrialist Henry J. Kaiser and physician Sidney Garfield. KP's quality of care has been highly rated and attributed to a strong emphasis on preventive care, its doctors being salaried rather than paid on a fee-for-service basis, and an attempt to minimize the time patients spend in high-cost hospitals by carefully planning their stay.

West Hills Hospital & Medical Center offers the full complement of advanced technology, compassion and responsive care for the improvement of human life. Our expert physicians and clinicians, and every employee, strive each day to bring outstanding service to the bedside. Serving the West Valley for more than 50 years, West Hills Hospital brings quality care, close to home.

Select Medical Providers Within Close ProximityPROXIMITY TO HOSPITALS

1 Tarzana Medical Urgent Care -0.2 Miles

2 Providence Tarzana Medical Center -0.9 Miles

3 Encino Hospital Medical Center -2.5 Miles

4 Dignity Health Northridge Hospital - 4.3 Miles

5 Kaiser Permanente-Woodland Hills -4.1 Miles

6 Sherman Oaks Hospital -5.8 Miles

7 Valley Presbyterian Hospital -5.8 Miles

8 West Hills Hospital -8.6 Miles

9 Rejuvenation Surgicenter -0.9 Miles

10 Center For Comprehensive Health -0.4 Miles

11 Encino Urgent Care -0.2 Miles

12 California Center For Plastic -2.7 Miles

13 Woodland Hills Urgent Care -5.7 Miles

14 AIM Healthcare Foundation -4.6 Miles

15 Valley Healthcare -4.8 Miles

16 Kidney Center Inc -4.8 Miles

17 Burn Center Recovery -4.8 Miles

18 AHF Health Care Ctr -4.8 Miles

19 Warner Center Psychiatric Med -4.9 Miles

20 Northridge Urgent Care -5.0 Miles

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PROVIDENCE TARZANAMEDICAL CENTER

ENCINO HOSPITALMEDICAL CENTER

DIGNITY HEALTHNORTHRIDGE HOSPITAL

KAISER PERMANENTEWOODLAND HILLS

WEST HILLS HOSPITAL


ENCINO


Building SF 48,590

LAND SF 53,590

Current Occupancy 81%

Zoning C4-1VL and RA-1

APN Number 2162-012-082 & 2162-012-083

Year Built 1972

Type of Ownership Fee Simple

Price $14,500,000

Price SF (Building) $298

Price SF (Land) $274

Current Cap Rate @ 81% Occupancy 4.79%

StabilizedCap Rate @ 95% Occupancy 6.23%

Pro Forma Cap Rate - Medical 8.23%

SUMMARY OF TERMS

FINANCIAL INFORMATION

INTEREST OFFERED100% fee simple interest in 17835 Ventura Boulevard, a 48,590 SF three story, medical office building in Encino, CA.

TERMS OF THE SALEProperty is being offered on a free and clear basis.

PROPERTY TOURSProspective purchases are encouraged to visit the site and review all due dilligence materials prior to submitting offers. Access to an outline due dilligence is available portal. All property tours must be coordinated through the listing team.


ENCINO

PROPERTY INFORMATION

PROPERTY HIGHLIGHTS

22


ENCINO


SF of MedicalSpace (82.23%)

40,000

212,670 Businesses in a 5-mile Radius

212,670

100 Surface SpacesRatio of 1.89/1,000 SF

100

81% of the Office Building is Currently Occupied

81%

ADDRESS17835 Ventura BoulevardEncino, CA 91316

SITEAlong Ventura Boulevard, on the north side of the Boulevard, just west of White Oak Avenue and just east of Zelzah Avenue

SQUARE FOOTAGESThe subject property consists of a three story, class B office building with 100 surface parking spaces on 53,008 square feet of land consisting of two separate parcels

CROSS STREETSThe cross streets are Ventura Boulevard and Zelzah Avenue

TRAFFIC COUNTSThe traffic counts at the signalized corner of Ventura Boulevard and White Oak Avenue is 24,070 vehicles per day and 25,649 along White Oak and Magnolia Boulevard.

PARKINGThe property offers 100 total parking spaces, a parking ratio of 2.06 per 1,000 SF

YEAR BUILTThe property was built in 1972

ZONINGThe zoning is C4-1VL, RA-1

APN NUMBERThe APN number is 2162-012-082 and 2162-012-083

MEDICAL USE40,000 SF (82.32%) of the total square footage is designated for medical use

PROPERTY DETAILS

FINANCIAL ANALYSIS


TENANT SF % LEASE START

LEASE EXPIRATION

BASE YEAR RENT RENT/SF PRO FORMA

RENTPRO FORMA

RENT/SF

App Nexus Inc. 3,760 8.28% 7/1/2017 6/30/2022 2017 $8,520.16 $2.27 - -

Matthew Esserman 435 0.96% 4/1/2009 3/31/2019 2009 $1,087.50 $2.50 - -

Vacant 900 1.98% - - - - - $2,385.00 $2.65

Robins Holdings Inc. 1,016 2.24% 3/1/2010 2/29/2019 2016 $2,263.52 $2.23 - -

Servpro 860 1.89% 6/1/2018 2/28/2020 2018 - - - -

Servpro 846 1.86% 5/1/2016 2/28/2020 2018 $15,933.96 $2.52 - -

Servpro 3,397 7.48% 2/1/2016 2/28/2020 2018 - - - -

Servpro 1,220 2.69% 3/1/2016 2/28/2020 2018 - - - -

McKeehan Escrow Co. 1,277 2.81% 11/1/1993 11/30/2020 2016 $2,721.05 $2.13 - -

Century 21 2,745 6.05% 1/1/2012 12/31/2021 2012 $5,908.01 $2.15 - -

Steve Warner 1,700 3.75% 8/1/2017 7/31/2020 2017 $3,677.10 $2.16 - -

Opdahl & Co. 702 1.55% 4/15/2015 6/30/2022 2018 $1,518.43 $2.16 - -

Pillemer & Pillemer 2,921 6.44% 3/1/2013 3/31/2021 2013 $7,156.45 $2.45 - -

The Breakthrough Clinic 879 1.94% 1/15/2017 2/28/2021 2017 $2,308.69 $2.63 - -

Apposite Technologies, LLC 2,951 6.50% 2/1/2018 3/31/2023 2018 $6,838.94 $2.32 - -

Vacant 2,957 6.51% - - - - - $7,836.05 $2.65

Vacant 910 2.00% - - - - - $2,411.50 $2.65

Advanced Sleep Med 4,285 9.44% 10/1/2014 11/30/2020 2018 $8,606.55 $2.01 - -


Vacant 3,902 8.60% - - - - - $10,340.30 $2.65

Steven Robert Fox 1,892 4.17% 5/1/2005 5/31/2020 2015 $4,134.88 $2.19 - -

Christina Cassel & Paul Mitchell 605 1.33% 7/1/2014 6/30/2019 2014 $1,361.87 $2.25 - -

Ben Hyatt 3,528 7.77% 9/1/2008 11/30/2022 2018 $7,449.37 $2.11 - -

Sprint 0 0.00% 1/30/2001 1/27/2026 N/A $2,281.31 - -

TOTAL 45,388 100% $85,357.34 $2.26 $22,972.85

RENT ROLL

FINANCIAL ANALYSIS


TENANT SF % LEASE START

LEASE EXPIRATION

BASE YEAR RENT RENT/SF PRO FORMA

RENTPRO FORMA

RENT/SF

App Nexus Inc. 3,760 8.28% 7/1/2017 6/30/2022 2017 $8,520.16 $2.27 - -

Matthew Esserman 435 0.96% 4/1/2009 3/31/2019 2009 $1,087.50 $2.50 - -

Vacant 900 1.98% - - - - - $2,385.00 $2.65

Robins Holdings Inc. 1,016 2.24% 3/1/2010 2/29/2019 2016 $2,263.52 $2.23 - -

Servpro 860 1.89% 6/1/2018 2/28/2020 2018 - - - -

Servpro 846 1.86% 5/1/2016 2/28/2020 2018 $15,933.96 $2.52 - -

Servpro 3,397 7.48% 2/1/2016 2/28/2020 2018 - - - -

Servpro 1,220 2.69% 3/1/2016 2/28/2020 2018 - - - -

McKeehan Escrow Co. 1,277 2.81% 11/1/1993 11/30/2020 2016 $2,721.05 $2.13 - -

Century 21 2,745 6.05% 1/1/2012 12/31/2021 2012 $5,908.01 $2.15 - -

Steve Warner 1,700 3.75% 8/1/2017 7/31/2020 2017 $3,677.10 $2.16 - -

Opdahl & Co. 702 1.55% 4/15/2015 6/30/2022 2018 $1,518.43 $2.16 - -

Pillemer & Pillemer 2,921 6.44% 3/1/2013 3/31/2021 2013 $7,156.45 $2.45 - -

The Breakthrough Clinic 879 1.94% 1/15/2017 2/28/2021 2017 $2,308.69 $2.63 - -

Apposite Technologies, LLC 2,951 6.50% 2/1/2018 3/31/2023 2018 $6,838.94 $2.32 - -

Vacant 2,957 6.51% - - - - - $7,836.05 $2.65

Vacant 910 2.00% - - - - - $2,411.50 $2.65



Vacant 3,902 8.60% - - - - - $10,340.30 $2.65

Steven Robert Fox 1,892 4.17% 5/1/2005 5/31/2020 2015 $4,134.88 $2.19 - -

Christina Cassel & Paul Mitchell 605 1.33% 7/1/2014 6/30/2019 2014 $1,361.87 $2.25 - -

Ben Hyatt 3,528 7.77% 9/1/2008 11/30/2022 2018 $7,449.37 $2.11 - -

Sprint 0 0.00% 1/30/2001 1/27/2026 N/A $2,281.31 - -

TOTAL 45,388 100% $85,357.34 $2.26 $22,972.85

Current Property Taxes $116,172

Projected Property Taxes $175,000

Increase $58,828.00/$0.10 SF Monthly

PROPERTY TAX INFORMATION

FINANCIAL ANALYSIS

CURRENT@ 81%

OCCUPANCY

STABILIZED @ 95%

OCCUPANCYPRO FORMA

MEDICAL

Scheduled Lease Income $996,912 $1,272,587 $1,817,700

CAM Reimbursements* $12,269 $12,269 $12,269

Increase in Property Tax Above Base Year $47,598 $47,598 $17,989

Effective Gross Income $1,056,779 $1,332,453 $1,904,943

Vacancy - 5% $66,623 5% $95,247

Expenses $414,258 $414,258 $414,258

Additional Income - Sprint $27,376 $27,376 $27,376

Additional Income - United Valet Parking $24,000 $24,000 -

Net Operating Income $693,897 $902,948 $1,377,448

*Approximate CAM reimbursements. Current ownership has not collected CAMS or preformed a CAM reconciliation.

INCOME AND EXPENSEPER YEAR PER SF

Taxes (1.25%) $181,250 $3.73

Insurance $10,343 $0.21

Repairs & Maintenance $13,000 $0.27

Janitorial Contract $21,785 $0.03

Janitorial Supplies $14,558 $0.07

Elevator Contract $3,350 $1.21

Landscaping/Gardening $1,950 $0.04

Trash $8,518 $0.18

Alarm System $3,316 $0.07

Utilities - Power, Water, Sewer, Fire $119,928 $2.47

Gas $1,367 $0.03

Management Fee $34,892 $0.72

Total $414,258 $8.53/ $0.71

OPERATING EXPENSES


FINANCIAL ANALYSIS

Price $14,500,000

Price/SF $298

Price/SF (Land) $274

Building SF 48,590

Land SF 53,008

Year Built 1972

Current CAP Rate @ 81% Occupancy 4.79%

Stabilized Cap Rate @ 95% Occupancy 6.23%

Pro Forma CAP Rate - Medical 8.23%

Current Occupancy 81%

PRICINGYEAR SF EXPIRING %

2019 2,056 5%

2020 17,177 38%

2021 6,545 14%

2022 7,990 18%

2023 2,951 7%

Vacant 8,669 19%

Total 45,388 100%

LEASE EXPIRATION ANALYSIS

0% 5% 10% 15% 20% 25% 30% 35% 40%

2023

2022

2021

2020

2019

Vacant


FINANCIAL ANALYSIS

Total SF 48,590

Medical SF (81%) 40,000

Office SF (19%) 8,590

PRO FORMA MEDICAL ANALYSIS

Medical Rent - $3.25/SF x 40,000 SF $1,560,000

Office Rent - $2.25/SF X 8,590 SF $257,700

Scheduled Lease Income $1,817,700

CAM Reimbursements $12,269

Property Tax Overage $47,598

Effective Gross Income $1,904,943

Current Expenses $414,258

Increased Utilities/Medical-15% Increase $17,989

Vacancy @ 5% $95,247

Net Operating Income $1,377,448

PROJECTED LEASING EXPENSES - MEDICAL

Tenant Improvements - $50 $2,000,000

Leasing Commission - 5% $234,000

Total $2,234,000

PRO FORMA MEDICAL ANALYSIS

TOTAL COSTS - PURCHASE PRICE + MEDICAL IMPROVEMENTS

Price $16,734,000

Price/SF $344

Cap Rate After Costs 8.23%

40,000 Medical SF

8,590Office SF

48,590TOTAL BUILDING SF

MARKET COMPARABLES


56

ENCINO MEDICAL TOWER1 Park Hill Medical Plaza & West Hills Medical Campus

2 Northridge III

3 Facey Medical Center

4 Oaks Professional

5 4529 Sherman Oaks Ave

6 15450 Ventura Blvd

7 Encino Office Plaza

8 Tarzana Professional Bldg

1

2

3

47

8


ENCINO

SALES COMPARABLES


SALES COMPARABLESSALES COMPARABLES | PRICE / SF

$0.00

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

Park Hill Medical Plaza &West Hills Medical

Campus

Northridge III Facey Medical Center Oaks Professional 4529 Sherman Oaks Ave 15450 Ventura Blvd Encino Office Plaza Tarzana Professional Bldg Average

$378.54

$445.32

$410.46

$344.04

$607.43

$740.20

$297.73 $285.38

$438.64

$439.64AVG PRICE

PER SF BUILDING

$309.06AVG PRICE

PER SF LAND


SALES COMPARABLES# ADDRESS SALE PRICE BLDG SF PRICE/SF

(BUILDING)LAND

SFPRICE/SF

(LAND)CAP

RATE ZONING CLOSE OF ESCROW

1

Park Hill Medical Plaza &West Hills Medical Campus7325 Medical Center DrWest Hills, CA 91307

$16,300,000 43,060 $378.54 41,382 $393.89 6.03% CR 07/31/2017

2Northridge III18460 Roscoe BlvdNorthridge, CA 91325

$11,300,000 25,375 $445.32 38,085 $296.71 - C2 05/12/2017

3Facey Medical Center11155-11165 Sepulveda BlvdMission Hills, CA 91345

$13,725,000 33,438 $410.46 133,346 $102.93 6.10% LAP 02/23/2018

4Oaks Professional4940 Van Nuys BlvdSherman Oaks, CA 91403

$11,065,000 32,162 $344.04 46,609 $237.40 4.30% C1.5-R3 09/19/2017

5 4529 Sherman Oaks AveSherman Oaks, CA 91403 $2,550,000 4,198 $607.43 4,792 $541.03 - C1-1 01/05/2017

6 15450 Ventura BlvdSherman Oaks, CA 91403 $3,775,000 5,100 $740.20 9,583 $393.92 1.25% LAC4 11/07/2017

7Encino Office Plaza17555 Ventura BlvdEncino, CA 91316

$9,800,000 32,916 $297.73 47,480 $206.40 5.80% C41VL/R1VL 03/19/2018

8Tarzana Professional Bldg19634 Ventura BlvdTarzana, CA 91356

$6,800,000 23,828 $285.38 22,651 $300.20 - C2 05/03/2017

Average $9,414,375 25,010 $438.64 42,991 $309.06 4.70%


SALES COMPARABLESPark Hill Medical Plaza & West Hills Medical Campus - 7325 Medical Center Dr, West Hills, CA 91307

Sales Price $16,300,000

BLDG SF 43,060

Price/SF (BLDG) $378.54

Land SF 41,382

Price SF/Land $393.89

Cap Rate 6.03%

Zoning CR

Close of Escrow 07/31/2017

1

Northridge III - 18460 Roscoe Blvd, Northridge, CA 91325


BLDG SF 25,375


Land SF 38,085


Cap Rate -

Zoning C2


2

Facey Medical Center - 11155-11165 Sepulveda Blvd, Mission Hills, CA 91345


BLDG SF 33,438


Land SF 133,346


Cap Rate 6.10%

Zoning LAP


3


SALES COMPARABLESOaks Professional - 4940 Van Nuys Blvd, Sherman Oaks, CA 91403


BLDG SF 32,162


Land SF 46,609


Cap Rate 4.30%

Zoning C15-R3


4

4529 Sherman Oaks Ave, Sherman Oaks, CA 91403


BLDG SF 4,198


Land SF 4,792


Cap Rate -

Zoning C1-1


5

15450 Ventura Blvd, Sherman Oaks, CA 91403


BLDG SF 5,100


Land SF 9,583


Cap Rate 1.25%

Zoning LAC4


6


SALES COMPARABLESEncino Office Plaza - 17555 Ventura Blvd, Encino, CA 91316


BLDG SF 32,916


Land SF 47,480


Cap Rate 5.80%

Zoning C4VL/R1VL


7

Tarzana Professional Bldg - 19634 Ventura Blvd, Tarzana, CA 91356


BLDG SF 23,828


Land SF 22,615


Cap Rate -

Zoning C2


8


1 R. J Plaza



4 Encino Medical Tower

5 Woodcourt Bld 1

6 Topanga Financial Center





11 Tarzana Executive


13 Encino Office Plaza

1

23

45

6

7

8

9 10

11

1213


ENCINO

ENCINO MEDICAL TOWER

RENT COMPARABLES - GENERAL OFFICE


ENCINO MEDICAL TOWER RENT COMPARABLES | PRICE / SF / MONTH

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

R. J Plaza 17337Ventura Blvd

17609Ventura Blvd

Radius Court WoodcourtBld 1

TopangaFinancialCenter

18075Ventura Blvd

17525Ventura Blvd

17815Ventura Blvd

17801Ventura Blvd

TarzanaExecutive

17404Ventura Blvd

Encino OfficePlaza

Average

$2.95

$2.25 $2.35

$2.55

$2.35 $2.25

$2.50 $2.35

$2.00

$2.25 $2.15

$2.85

$2.00

$2.37



# ADDRESS RENTABLE SF SF LEASED RENT/SF/YEAR RENT/SF/MONTH LEASE TYPE YEAR BUILT

1R. J Plaza14144 Ventura Blvd Sherman Oaks, CA 91423

48,251 1,953 $35.40 $2.95 Full Services 1983

2 17337 Ventura BlvdEncino, CA 91316 48,000 5,115 $27.00 $2.25 Full Services 1976


4Encino Medical Tower17835 Ventura BlvdEncino, CA 91316

45,308 860 $30.60 $2.55 Full Services 1972

5Woodcourt Bld 120301 Ventura Blvd Woodland Hills, CA 91364

42,082 860 $28.20 $2.35 Full Services 1980

6Topanga Financial Center5855 Topanga Canyon BlvdWoodland Hills, CA 91367

50,000 3,855 $27.00 $2.25 Full Services 1980

7 18075 Ventura BlvdEncino, CA 91316 10,857 300 $30.00 $2.50 Full Services 1965


9 17815 Ventura BlvdEncino, CA 91316 31,192 3,100 $24.00 $2.00 Modified Gross 1980




10 17801 Ventura BlvdEncino, CA 91316 9,700 7,000 $27.00 $2.25 Modified Gross 1977

11Tarzana Executive18425 Burbank BlvdTarzana, CA 91356

94,571 3,870 $25.80 $2.15 Full Service 1982

12 17404 Ventura BlvdEncino, CA 91316 14,767 3,580 $34.20 $2.85 Full Service 1985

13Encino Office Plaza17555 Ventura BlvdEncino, CA 91316

32,916 1,618 $24.00 $2.00 Full Service 1999

Average 39,175 2,935 $28.43 $2.37

$28.43AVG RENT SF

YEAR

$2.37AVG RENT SF

MONTH



1 Encino Woods

2 The Ventana

3 Tarzana Executive

4 Tarzana Medical Center

5 Encino Medical Tower

6 Rimal Medical Building


8 Encino Professional Building

9 The Almar Bldg

10 Wilbur Medical Plaza

11 Encino Arches

12 West Valley Medical Center

13 Tarzana Medical Atrium

14 Tarzana Medical Plaza

1

2

3


ENCINO

4

5

6

78

9

10

11

12

1314

ENCINO MEDICAL TOWER

RENT COMPARABLES - MEDICAL


ENCINO MEDICAL TOWER RENT COMPARABLES | PRICE / SF / MONTH

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

Encino Woods The Ventana TarzanaExecutive

TarzanaMedical Center

Encino MedicalTower

Rimal MedicalBuilding

15840 VenturaBlvd

EncinoProfessionalBuilding

The Almar Bldg Wilbur MedicalPlaza

Encino Arches West ValleyMedical Center

TarzanaMedicalAtrium

TarzanaMedical Plaza

Average

$3.25

$3.95

$3.00 $3.00

$3.25

$3.50 $3.50

$3.25 $3.15 $3.15 $3.20

$3.00

$4.95

$4.00

$3.44




1Encino Woods17525 Ventura BlvdEncino, CA 91316

38,632 1,939 $39.00 $3.25 Full Service 1980

2The Ventana 18131 Ventura BlvdTarzana, CA 91356

117,978 30,694 $47.40 $3.95 Modified Gross 2017

3Tarzana Executive18425 Burbank BlvdTarzana, CA 91356

94,571 1,353 $36.00 $3.00 Full Service 1982

4Tarzana Medical Center18740 Ventura BlvdTarzana, CA 91356

27,190 1,258 $36.00 $3.00 Full Service 1962

5Encino Medical Tower16260 Ventura BlvdEncino, CA 91436

60,529 5,948 $39.00 $3.25 Full Service 1977

6Rimal Medical Building 18840-18850 Ventura BlvdTarzana, CA 91356

24,959 1,525 $42.00 $3.50 Full Service 1974

7 15840 Ventura BlvdEncino, CA 91436 33,000 832 $42.00 $3.50 Full Service 1966

8Encino Professional Building16500 Ventura BlvdEncino, CA 91436

28,545 1,408 $39.00 $3.25 Full Service 1985

9The Almar Bldg16030 Ventura Blvd Encino, CA 91436

150,386 5,350 $37.80 $3.15 Full Service 1983




10Wilbur Medical Plaza5620 Wilbur AveTarzana, CA 91356

52,889 4,800 $37.80 $3.15 Full Service 1986

11Encino Arches15503 Ventura BlvdEncino, CA 91436

76,652 15,505 $38.40 $3.20 Full Service 1990

12West Valley Medical Center5353-5363 Balboa BlvdEncino, CA 91316

103,008 1,065 $36.00 $3.00 Full Service 1986

13Tarzana Medical Atrium5411 Etiwanda AveTarzana, CA 91356

89,158 12,569 $59.40 $4.95 Modified Gross 2019

14Tarzana Medical Plaza5525 Etiwanda AveTarzana, CA 91356

67,933 1,975 $48.00 $4.00 Full Service 1986

Average 68,959 6,159 $41.27 $3.44

$41.27AVG RENT SF

YEAR

$3.44AVG RENT SF

MONTH


AREA OVERVIEW

Almost 2.5 million people reside in the San Fernando Valley, which includes the sub-markets of Northridge-Northwest San Fernando Valley; Van Nuys-Northeast San Fernando Valley; Woodland Hills; Burbank-Glendale-Pasadena; as well as Sherman Oaks-North Hollywood-Encino. The area’s population is expected to increase by 1.9 percent through 2019, or by nearly 45,000 new residents.

Known for its entertainment industry, the Valley boasts more than 100 soundstages. Entertainment giants calling the Valley home include Walt Disney Co., Universal Studios, Warner Brothers, DreamWorks and Paramount Ranch. The entertainment industry continues to set the area’s economic pulse. Local motion-picture and entertainment companies employ roughly 25,000 people.

While the Valley has grown into the world’s center for entertainment, aerospace giants Boeing and Northrop Grumman, and 21st Century Insurance also generate numerous well-paying jobs.

Healthcare is a also a major source of employment with providers that include Kaiser Permanente, and Providence Health & Services. As a result of its large concentration of high-salaries and successful companies, the area’s median household income of $59,300 per year has risen dramatically since 2000.

SAN FERNANDO VALLEY


SAN FERNANDO VALLEY MAJOR EMPLOYERS

SAN FERNANDO VALLEY HIGHLIGHTS▶ 2.5 million residents in the San Fernando Valley

▶ Population growth projected – 45,000 new residents by 2019

▶ Strong ties to the entertainment industry – Home of Walt Disney Company, Universal Studios, Warner Brothers, DreamWorks and Paramount Ranch

▶ Local motion picture and entertainment companies employ roughly 25,000 people

▶ Aerospace (Boeing & Northrop Grumman) Insurance (21st Century Insurance) and Healthcare (Kaiser Permanente and Providence Health & Services) industries also generate numerous well-paying jobs

▶ Substantial income growth since 2000

▶ Home ownership rate near 50% and large rental base

Encino, California is one of the strongest and most affluent submarkets in all of Los Angeles County. Encino boasts strong high -end demographics with a large number of households showing incomes north of $125,000. Homes south of Ventura Boulevard in Encino are considered to be among the most expensive in Los Angeles County. They range from 2-50 million dollars and are home to numerous celebrities, executives, athletes, and entertainers. The local economy provides jobs primarily in health care, social services, and professional services. Encino is the home to 3,800 businesses employing about 27,000 people at an annual payroll of $1.4 billion.

Encino is situated in the central portion of the southern San Fernando Valley and on the north slope of the Santa Monica Mountains. It is flanked on the north by Reseda and the Sepulveda Basin, on the east by Sherman Oaks, on the southeast by Bel-Air, on the south by Brentwood and on the west by Tarzana. Ventura Boulevard, the primary east-west thoroughfare through the San Fernando Valley, runs directly through Encino. It is the world’s longest avenue of contiguous businesses at 18 miles long. Previously, Ventura Boulevard was the most concentrated location of mom-and-pop shops in the Valley. Nowadays, it has housing, mini-shopping centers, restaurants, coffee shops, nightlife, office buildings, hospitals, supermarkets, and more.

THE EPICENTER OF SAN FERNANDO VALLEY▶ Affluent neighborhood – High percentage of households with incomes above $92,318

▶ Ideally situated in the central portion of the southern San Fernando Valley and on the north slope of the Santa Monica Mountains

▶ Significant population growth over the last six years

▶ Encino is one of the most desirable and affluent areas in Los Angeles and is a favored residential location for business and community leaders, entertainment celebrities and high net worth families

▶ 46.8% of Encino residents 25 and older have earned a four-year degree

▶ Central West SFV location offers close proximity to major freeways, airports, DTLA, Tri-Cities, Westside and the Warner Center

ENCINO, CALIFORNIA


PUBLIC TRANSIT

METRO ORANGE LINE

Encino Office Center is situated near the Balboa Orange Line Bus Stop. The Orange Line is a bus rapid transit line in the Metro Liner network. It operates between Chatsworth or Warner Center (trips alternate between the two western terminals) and the North Hollywood Metro Station in the San Fernando Valley, where it connects with the Metro Red Line for Downtown Los Angeles. The 18-mile Orange Line uses a dedicated, exclusive right-of-way with stations located at one-mile intervals. The Metro Orange Line bicycle path runs alongside part of the route.

View of Encino

RECREATIONEncino offers multiple amenities to its residents and those in the surrounding area. The city is home to three 18 hole Municipal golf courses, Woodley Lakes Golf Course, Encino Golf Course and Balboa Golf Course.

The Sepulveda Basin Wildlife Reserve is a haven for wildlife and humans alike, a welcome oasis within an urban setting of Van Nuys and Encino. The U.S. Army Corps of Engineers channelized the Los Angeles River and built the Sepulveda Dam to capture and hold floodwaters for later gradual release down the river. Except for infrequent flood episodes, this otherwise dry-land flood control basin leased to the City of Los Angeles Department of Recreation & Parks plays host to diverse uses including athletic fields, agriculture, golf courses, a fishing lake, park lands, a sewage treatment facility and a growing wildlife reserve.

The Balboa Sports Complex run by the Department of Recreation & Parks has a gym capacity of 400, lighted baseball diamond, basketball courts, football field, handball courts, tennis courts, volleyball courts, children’s play area, unlighted soccer field, indoor gym and community room.

Balboa Golf Course

Total Population of Encino, CA

MALE

High School Graduate Associates Graduate Bachelor’s Graduate Graduate Degree

FEMALE

28,628

51%49%

45.2% 27% 21.9% 6.6%

EDUCATION

POINTS OF INTEREST• ◆ Woodley Lakes Golf Course• ◆ Encino Golf Course• ◆ Balboa Sports Complex• ◆ The Sepulveda Basin Wild Reserve

• ◆ The Museum of San Fernando Valley• ◆ Valley Relics Museum• ◆ William S Hart Museum• ◆ Colonia Gymnasium

• ◆ The Oaks Overlook• ◆ SwingIt Trapeze• ◆ Nethercutt Collection

DEMOGRAPHICS

$103,712Average HH income within 3-m radius

458,447Population within 5-m radius

$68,622Median HH income within

5-m radius

75,175Owner Occupied Households

within 5-m radius

88,253Renter Occupied Households

within 5-m radius

163,428Households within a 5-m radius

POPULATION 1 MILE 3 MILES 5 MILES

2019 Total Estimated Population 28,628 145,563 458,447

2019 Total Estimated Households 12,575 53,844 163,428

Avg Household Size 2.20 2.60 2.70

2019 Average Household Income $95,074 $103,712 $92,318

HOUSE HOLDS

2018 Owner Occupied Housing Units 6,268 29,818 75,175

2018 Renter Occupied Housing Units 6,306 24,026 88,253

2018 HOUSEHOLDS BY HOUSEHOLD INCOME

<$25,000 2,386 9,833 33,084

$25,000 - $50,000 1,769 8,617 31,836

$50,000 - $75,000 2,879 9,050 26,530

$75,000 - $100,000 1,144 5,701 18,588

$100,000 - $125,000 1,388 5,850 15,506

$125,000 - $150,000 666 3,359 9,929

$150,000 - $200,000 1,173 4,485 12,009

$200,000+ 1,169 6,948 15,945


ENCINOBRANDON MICHAELSSenior Managing Director of InvestmentsSenior Director, National Retail GroupTel: (818) [email protected]: CA #01434685

TEAM MEMBERSSean BrandtBen BrownsteinNicole CottrellDana LiuLauren SacklerSteven SchechterAustin Sreden

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