Offering Memorandum 3409, 3411, 3421 Fletcher Drive Los ......vacant Single Family Homes on a massive 27,149 SF triple lot zoned RD1.5-1-CDO. The land measures 182’ x 150’ making

Offering Memorandum 3409, 3411, 3421 Fletcher Drive Los Angeles, CA 90065

Presented By Andrew Wilkey 949.355.3384 [email protected] DRE 01998185

Kenny Stevens 310.968.7005 [email protected] DRE 01090251

3409, 3411, 3421 Fletcher Drive Los Angeles, CA 90065

LOCATION OVERVIEW PROPERTY SUMMARY

SITE PLANS

NEIGHBORHOOD

COMPARABLES FINANCIALS

Glassell Park is a community nestled in a relatively small pocket between Atwater Village, Eagle Rock, Highland Park, and Mount Washington. The area is bordered by the LA River to the South, The Verdugo Mountains to the North, and views of Mt. Washington to the East. The zip code gets its name from Andrew Glassell, a famous attorney and developer who was granted a large portion of the land during the Great Partition of 1871. Glassell passed away in 1901 and the land has slowly been sold off by the remaining family. Many of the street names are named after his close family: Toland, Drew, Andrita, Marguarite, etc. Glassell Park has experienced tremendous change in the last 10 years. Hipsters from Atwater Village, Highland Park, and Silverlake are migrating into Glassell Park and occupying the apartments and homes that once ran wild with questionable characters.

Location Overview

The area provides a certain level of affordability that allows millennials to purchase or rent their own little piece of Los Angeles at a fraction of the cost. Quaint coffee shops, trendy night clubs, and local breweries line the narrow commercial streets of Glassell Park providing entertainment and dining to local residents. Median home prices in Glassell Park have increased by 10.5% over the past 1 year, and values are expected to continue rising as millennials keep pouring in, and the city continues investing in infrastructure. Several large development/improvement projects are expected to hit the area in the next 5 years, making it an attractive area to investors seeking value where nobody else is looking.

Property Summary Property Description

3409, 3411, 3421 Fletcher Drive is located in the rapidly growing Northeast LA neighborhood of Glassell Park and is adjacent to the new LA River Wetlands project. The offering consists of three vacant Single Family Homes on a massive 27,149 SF triple lot zoned RD1.5-1-CDO. The land measures 182’ x 150’ making it a perfect candidate to subdivide into 17 Small Lot Homes. The site is located in an Opportunity Zone which qualifies the Owner for a special tax incentive program. This project will be delivered with RTI permits to Begin building 17 small lot homes.

Property Highlights

• Opportunity to Build 17 Small Lot Homes in Glassell Park!

• Northeast LA Location adjacent to Silverlake, Atwater Village,and Highland Park.

• Walk Score of 74/100 - Very Walkable

• Minutes away from the LA River Revitalization Project

• Large flat 27,149 sf triple lot (182' x 150’)

• Located in Opportunity Zone!

• RD1.5-1-CDO Zoning (Build 17 Small Lot Homes by-right)

• Delivered fully vacant with RTI Permits

Property Details

Units

(3) SFRs | 3+2, 2+1, 2+1 | Delivered Vacant

Major Intersections

Fletcher Drive and W Avenue 34

Market

Glassell Park

APN

5458-024-019

5458-024-021

5458-024-038

Zoning Type RD1.5-1-CDO

Buildable SF 29,947

Land SF 27,149

Lot Dimensions 182' x 150’

Price $4,400,000

Parcel Map

Property Summary Seismic Hazard Info

Parcel Number: 5458-024-019 5458-024-021 5458-024-038

Address: 3409 Fletcher Drive, Los Angeles 3411 Fletcher Drive, Los Angeles 3421 Fletcher Drive, Los Angeles

Fault Zone: This parcel is NOT WITHIN an Earthquake Fault Zone.

Landslide Zone: This parcel is NOT WITHIN a Landslide Zone.

Liquefaction Zone: This parcel is NOT WITHIN a Liquefaction Zone.

Slope: This parcel is on a flat piece of land.

Earthquake Fault Zone Map

Property Summary

Opportunity Zone

3409, 3411, 3421 Fletcher Drive is located in an Opportunity Zone! What does this mean?

Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide.

An investor can roll their capital gains into an Opportunity Zone Property and avoid paying up to 15% on those gains. More importantly, an investor can avoid paying 100% of the capital gains taxes accrued in the 10 year required holding period if they substantially improve the property. The substantial improvement must cost at least as much as the purchase price, and must be done within 30 months of acquiring the property. The Opportunity Zone Program favors ground-up development and 3409, 3411, 3421 Fletcher Drive is the perfect Opportunity Zone deal.

Example: Purchase 3409, 3411, 3421 Fletcher Drive with your capital gains (for $4,400,000), spend the substantial improvement money to build 17 homes (At least $4,400,000), hold the property for 10 years and cash out with 15% less tax owed on the original gains rolled into the project, AND pay NO CAPITAL GAINS on the proceeds from your development project. See financials page for more...

Opportunity Zone Map: https://bit.ly/2Ix098Z

More on Opportunity Zones: https://bit.ly/2JtrAAU

Property Summary Opportunity Zone Map

Property Summary Project Data

Property Summary Site Plan-Elevations

Property Summary Site Plan-Elevations

Property Summary Site Plan-1st Floor

Property Summary Site Plan-2nd Floor

Property Summary Site Plan-3rd Floor

Property Summary Site Plan-4th Floor

Property Summary Subdivision Requirements Lot Size — “RD” Zone 3409, 3411, 3421 Fletcher Drive Lot Dimensions = 182’ x 150’ Site Zoning: RD1.5-1-CDO

Property Summary Property Photos

Property Summary Property Photos

Property Summary Property Photos

Property Summary Property Photos

Neighborhood LA River Developments

Neighborhood LA River Developments

1. 419 Unit Luxury Apartment Living Complex– has been proposed by developers looking to acquire the parcel running along the LA River known as the Bow Tie Yard. The space was once a thriving train station for Union Pacific Railway, but has since gone inactive and allows a potential opportunity for investors to repurpose. As it stands, developers need the city to grant a zoning change due to the fact that the parcel is currently earmarked for heavy manufacturing. However, with several projects under construction adjacent to the Bow Tie Yard, many believe the zoning change with be granted which will benefit all neighboring Glassell Park residents.

2. 56 Condominium Units – Luxury Condominium units known as “The River House” have been developed on the waterfront across from the Bow Tie Yard to meet growing demand for luxury apartment living in LA. Residents will be pioneers, becoming some of the first to own a home on the LA River and witness its revitalization first hand.

3. The Bend – This development sits on the Westside of the LA River in Frogtown and was built by Killefer Flammang Architects in 2017. The 3-story building contains 40 loft-style units geared towards creatives and makers. Some of the units feature spiral staircases that lead to private roof decks looking out to the LA River. Residents of this building will get an incredible view that will only improve as the city begins restoration of the LA River.

4. 53 Live / Work Units – An LA-based Developer filed plans to buildg 53 live/work units on Blake avenue directly adjacent to the LA River. The new building would measure 54,000 sqft and 11 percent of the units would be reserved for low income tenants. The property is located on the other side of the river from the Taylor Yard, a city-owned site that will eventually be turned into a big park.

5. 117 Small Lot Homes and Condos – this project is currently the largest development in Frogtown and sits directly across the river from the Taylor Yard Parcel.

This site was formerly a food processing plant zoned for industrial use, but the owners have filed for yet another zoning change to multifamily. The project consists of two adjacent parcels accounting for roughly 27,000 sqft of land. 100 small lot homes will be developed on the Blake Street parcel while 17 condo units will be developed on the Blimp Street parcel. The property will include amenities such as a dog park, playgroup, gym, etc.

6. Target – October of 2017 Target opened a store where the Fresh and Easy previously shut down in late 2015. There is already a Target nearby in Eagle Rock, however Target executives believe a location in Glassell Park will fill a necessary void for a big-box retailer to sink its roots and cater to this vibrant local community.

Neighborhood LA River Developments

7. 370 Unit Apartment Living Complex – has been proposed by a developer who recently (Nov. 2016) acquired this 4.8 acre parcel adjacent to the LA River in Glassell Park. Plans were submitted to the city to build 370 units with 31 units set aside for affordable housing. This project is amongst the Bow Tie Yard and many other proposed developments looking to achieve a zoning change from industrial to multifamily.

8. LA River Habitat Restoration Plan – The city of Los Angeles has acquired the Taylor Yard G2 Parcel, currently 42 acres of industrial rail yard, and will have Union Pacific Railway clean up the soil contamination. The plan includes restoring the area into a wildlife sanctuary for the common use of Glassell/Cypress Park residents. This means widening the channel, restructuring channel walls and banks to support vegetation, and the creation of a riffle and pool system to support freshwater marsh habitat. A bridge from Frogtown has also been proposed which will connect residents on both sides of the LA River. The road has been long and the prize elusive, but its looking like the city is finally on the cusp of beginning construction at the crown jewel parcel on the Los Angeles River.

9. Taylor Yard Village Project – Nestled alongside the banks of the LA River in Cypress Park, the 17-acre Taylor Yard Village master plan includes 95 paired and detached SFR homes plus 262 apartments. Just steps away from the 40-acre Rio de Los Angeles State Park, residents will enjoy a central paseo including lush landscaping and 25,000 sqft of retail space in the future. The Taylor Yard Village offers the rarest of opportunities to live your dream in the heart of Los Angeles. Half of the project has been completed and is currently being leased, while the other half is still undergoing construction.

10. Taylor Yard Bikeway Bridge – A bright orange bridge across the LA River from Frogtown to Cypress Park will start construction in April 2019. The bridge will allow bicyclists and pedestrians to travel safely across the River. The architects seek to create the impression that the bridge floats over the river instead of just spanning it. This bridge is one of many that have been planned across the LA River in the near future.

Neighborhood Upcoming Developments Near Fletcher Drive

Neighborhood Local Attractions

Comparables Map Small Lot Home Sales

Comparables Data Small Lot Home Comps

Comparables Map Small Lot Home Rentals

Financials Project Feasibility

For more information, please contact:

Andrew Wilkey 949.355.3384 [email protected] DRE 01998185

Kenny Stevens 310.968.7005 [email protected] DRE 01090251