5735 MELROSE AVE HOLLYWOOD ◆ CA

FOR SALE | OWNER-USER | INVESTMENT

THE OPPORTUNITY

THE OPPORTUNITY

CBRE, Inc., as exclusive advisor, is pleased to

present the opportunity to acquire an outstanding

property in 5735 Melrose Avenue (the “Property”).

The Property consists of an 8,446 square foot,

highly-improved creative office building situated on

approximately 11,480 square feet of land. Located

immediately east of the intersection of Melrose

Avenue and Vine Street. The Property is just steps

from Larchmont Village, well-known for its myriad

of amenities, presenting a unique and desirable

purchase opportunity for owner-users and investors

alike.

This offering in the burgeoning Hollywood submarket

consists of a two-story, free-standing wood and

stucco building as well as a surface parking lot

capable of parking a total of approximately 16 cars

with the ability to park additional cars via valet

assist.

The Property’s existing improvements will likely

provide significant residual value to many creative

and entertainment users. This represents a rare

opportunity for an investor to acquire a highly-

improved, well-parked asset and capitalize on

Hollywood’s rapidly rising rental rates and lack of

unique free-standing buildings.

A tranquil oasis in the heart of Hollywood and just

blocks from Paramount Studios, this light-filled,

jewel-box building features prominent identity on

Melrose Avenue, top-of-the-line finshes, indoor/

outdoor work space and a screening room.

DESCRIPTIONTwo-Story Creative Office Building

YEAR BUILT / RENOVATED1952 / 2008

BUILDING SIZE±8,596 SF

PRICEBest Offer

ZONINGC2-10 (Los Angeles)

LAND SIZE±11,480 SF

PARKING16+ spaces

APN5534-036-030

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RESTRM

CONFERENCEROOM

LOBBY

RECEPTION

LIVING ROOM

KITCHEN

CAFE

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PATIO

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CONFERENCEROOM

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THEATER

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PARKING

SERVERRM

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THEATER EQUIPT

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DRIVEWAY

COVEREDCAR RAMP

ELECT / STOR .

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OFFICE

OPEN OFFICE

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JAN .CL . STOR

STAIR

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FLOOR PLANS

FIRST FLOOR - 4,774 SF

SECOND FLOOR - 3,822 SF

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CONFERENCEROOM

LOBBY

RECEPTION

LIVING ROOM

KITCHEN

CAFE

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PATIO

MTG . AREA

CONFERENCEROOM

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THEATER

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PARKING

SERVERRM

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THEATER EQUIPT

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DRIVEWAY

COVEREDCAR RAMP

ELECT / STOR .

elect . panels

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OFFICE

OPEN OFFICE

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JAN .CL . STOR

STAIR

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SITE

HOLLYWOOD & HIGHLAND

HOLLYWOOD 959

MILK STUDIOS

RED STUDIOS

TELEVISION CENTER

EMERSON COLLEGE

HOLLYWOOD CENTER STUDIOS

THE ACADEMY

COLUMBIA SQUARE

SIREN STUDIOS

SUNSET GOWER STUDIOS

PARAMOUNT STUDIOS

SUNSET BRONSON STUDIOS

LOCATION

UNIVERSAL STUDIOS

BURBANK

VIACOM LEGEND 3D

NETFLIX

VINE STUDIOS

LARCHMONT VILLAGE

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MARKET AREA & OVERVIEW

MARKET AREA & OVERVIEW

Since the early 20th Century, Hollywood has been

and continues to be the entertainment capital of

the world. In addition to its multi-tenant office

base, Hollywood has a strong core composed

of a major motion picture studio, independent

studios, television stations, radio stations, film

laboratories, record companies, recording studios,

post-production facilities, special effects and

multi-media companies. These firms serve as the

backbone of the Hollywood commercial real estate

market. Because of the technical nature of their

businesses, many of these firms have made long-

term commitments to the area, and have made

substantial investments in their equipment and

facilities.

Due to the fact that the entertainment industry

is spread throughout the Los Angeles region and

has significant hubs in Santa Monica, Century

City, Culver City, West Hollywood, Hollywood and

Burbank, Hollywood uniquely provides these firms

with a strategic central location to serve other

industry firms in the surrounding areas. With the

proximity to the major studios in Burbank (ABC/

Disney, DreamWorks and Warner Bros), Universal

City (NBCUniversal), Century City (Fox) and Culver

City (Sony), Hollywood is the perfect central location

for firms that conduct business with these major

studios and draw their employees from throughout

the Los Angeles region, not to mention the perfect

location for anyone doing significant business with

Paramount.

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NETFLIX

The video streaming leader continues to expand with a current office & stage footprint of over 550,000 SF, following their relocation from Beverly Hills, as it makes a push to further enhance its original content. This relocation represents one of the most significant “wins” for the Hollywood office market in recent memory. Further expansion likely.

TRAILER PARK

Recommits to Hollywood long-term by signing a 10-year renewal and expansion for 103,000 SF at 6922 Hollywood.

VIACOM

The media giant pre-leases then expands to 220,000 SF at Columbia Square to relocate its MTV division from Santa Monica and its BET division from WLA.

SHOWTIME

Leases 47,000 SF at Formosa West on The Lot Studios in a relocation from Westwood, another significant “win” for Hollywood.

BUDDHA JONES

Commits to Hollywood long-term with 30,000 SF consolidation at 1741 Ivar.

WEWORK

Leases all 108,000 SF at 1601 Vine St in major Hollywood expansion.

LIVE NATION

Renews and expands by over 45,000 SF at 1800 N Highland Ave.

KTLA

The Tribune owned, local Channel 5, renews long-term for 95,000 SF at Sunset Bronson Studios committing to Hollywood over cheaper alternatives in Burbank.

BUZZFEED

The new-media company signs several short-term leases as it focuses on a long-term solution totaling over 100,000 SF in the Hollywood Media District.

SPACES

Leases all 61,000 SF at 1800 Vine St to open their first Hollywood location.

SIRIUSXM

The satellite radio firm pre-leases approx. 30,000 SF at CIM Group’s 953 Sycamore.

RECENT SIGNIFICANT ACTIVITY

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The Hollywood multi-tenant office market

comprised of over 5.3 million square feet

throughout 68 office buildings, has emerged

from the last downturn as one of the hottest office

markets in California, if not the United States.

This is largely attributed to Hollywood’s central

geographic location and the “critical mass” of the

studios and entertainment industry in the area. As

traditional technology companies attempt to drive

evermore viewers to their websites and streaming

platforms, they have tuned to content creation as

a crucial means of accomplishing this. While the

submarket was impacted by the last downturn,

Hollywood is as hot as ever and rental growth is

in full-swing.

When juxtaposed with many of the other Los

Angeles area submarkets, Hollywood has

performed favorably on a relative basis in terms

of the percentage increase in vacancy rate and

decline in average asking rental rates in downturns,

demonstrating Hollywood’s resilience and strong

underlying fundamentals. Given the relatively

small square footage base of the multi-tenant

office market, as the overall economy improved,

and continues to improve, the submarket has

tightened rapidly. This has left very few large blocks

of space available in the existing inventory and we

anticipate the submarket will continue to set new

peak rent levels as Hollywood’s supply constraints

once again become exposed. While vacancies have

increased primarily due to the lack of leasing at

959 Seward, the higher-quality new construction

(Columbia Square, ICON, CUE) all experienced

significant pre-leasing. Furthermore, 959 Seward

is in negotiations with several large tenants, which

would stabilize this asset and justify landlords

significantly pushing rents as this near-term drag

on the market becomes less of an encumbrance on

the market. We anticipate that rates will continue

their increase across the board despite the minor

headwinds. As of today, excluding the future or

newly delivered vacancy in new construction, most

of Hollywood’s vacancy exists in inferior buildings

and the availability of quality creative space, large

or small, remains extremely limited and is often

subject to competitive bid situations.

In addition to the multi-tenant office market, there

are several million square feet of smaller, low-rise,

“creative” office buildings and single-tenant, free-

standing buildings that supplement the traditional

high-rise office base. Many of these buildings had

originally been industrial properties and have

been converted to special use entertainment

and/or creative office space environments for

the entertainment, advertising and technology

firms that provide auxiliary services to the

entertainment industry. Converting these facilities

is often quite costly and these users have invested

significant capital into the equipment and physical

infrastructure

THE HOLLYWOOD MARKET

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MARKET STATS

SUBMARKETBASE SF

(MIL)DIRECT

VACANCYAVG ASKING

RATE

HOLLYWOOD 5.3 10.8% $4.57

HOLLYWOOD/WILSHIRE CORRIDOR

20.7 15.3% $3.05

LA COUNTY 204.4 13.9% $3.29

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Hollywood is in the midst of a major revitalization, which includes over $5 billion in public and private developments which include world-class entertainment and tourist venues, the extension of the transportation infrastructure, a large concentration of new residential developments, and the redevelopment of numerous trendy restaurants, hotels, bars and clubs that is transforming the area into a vibrant “live, work, play” environment. Hollywood has received

increased media attention and positive coverage in recent months, emphasizing that the renaissance of Hollywood is happening and it’s happening now!

Hollywood is home to the largest concentration of film, television, and post-production facilities in the world making it the beating heart of the entertainment industry.

THE HOLLYWOOD RENAISSANCE STORY

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AERIAL MAP

SITE

LARCHMONT VILLAGE

RALEIGH STUDIOS

PARAMOUNT STUDIOS

HANCOCK PARK

KOREA TOWN

DOWNTOWN LA

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SITE

CENTURY CITY

MILK STUDIOS

PARAMOUNT STUDIOS

PACIFIC DESIGN CENTERMIRACLE

MILE

LARCHMONT VILLAGE

PARK BREA

CBS TELEVISION CITY

THE GROVE

THE FARMERS MARKET

WILSHIRE COUNTRY CLUB

HANCOCK PARK

BEVERLY HILLS

TELEVISION CENTER

RED STUDIOS

AERIAL MAP

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AFFILIATED BUSINESS DISCLOSURE

CBRE operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

CONFIDENTIALITY AGREEMENT

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the property or the owner of all Property (the”Owner”), to be all-inclusive or to contain all or part of the information are provided for general reference purposes only and are based on

assumptions relating to the general economy, market conditions, competition and other factors being the control of the Owner and CBRE,Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc., nor any of their respectful directors, officers, Affiliates or representatives make an representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written

authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMER

© 2018 CBRE, Inc. The information containing in this document has been obtained for sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property, The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the Property of their respective owners.

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© 2018 CBRE, Inc. The information containing in this document has been obtained for sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property, The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the Property of their respective owners.

V2 - 5735 Melrose_NEW brochure

FOR MORE INFORMATION, PLEASE CONTACT:

ROB WALLERExecutive Vice PresidentLic. 00874585+1 310 550 2536rob.waller@cbre.com

PATRICK AMOSSenior Vice PresidentLic. 01886581+1 310 550 2594patrick.amos@cbre.com

DYLAN HANSETHAssociateLic. 01965770+1 310 550 2578dylan.hanseth@cbre.com

JEFF PIONVice ChairmanLic. 00840278+1 310 550 2537jeff.pion@cbre.com