1422 TAMARIND AVENUE HOLLYWOOD, CA 90028

Transcription

1 OFFERING MEMORANDUM 17 UNITS WITH PARKING IN THE HEART OF HOLLYWOOD

2 PRESENTED BY Kenny Stevens BRE# LOCATION OVERVIEW Location Overview Hollywood Developments Property Location PROPERTY SUMMARY Property Details Property Highlights FINANCIALS Financial Overview Rent Roll Loan Quote COMPARABLES Sales Comps Rent Comps PHOTOGRAPHY South Beverly Drive, First Floor, Beverly Hills, CA 90212

3 LOCATION HOLLYWOOD, CA HOLLYWOOD, CALIFORNIA 1422 Tamarind Ave, is located in the booming, culturally rich neighborhood of Hollywood. The recent revitalization of Hollywood, long in the making, is now in full swing. Major entertainment and tech companies like Netflix & Viacom are now embracing the neighborhood. Just in the past 12 months, more than 7,500 new jobs were created in Hollywood. Hollywood is one of those neighborhoods that needs no introduction, synonymous as it is with the city of Los Angeles itself. Because of its history and famous sites like the Hollywood Walk of Fame, it has always attracted hordes of tourists, but now it has become the epicenter of new Class A office campuses in Los Angeles. Developers are creating millions of sq. ft. of Class A office space and thousands of new luxury rental units. Old Hollywood is stepping in too, with Paramount Pictures recently winning approval for a 1.4 million-square-foot studio expansion. Companies specializing in streaming media and virtual reality are now flocking towards Hollywood. Hollywood is also one of the most populated areas for schools, with a wide range of colleges and specialized programs like AMDA (American Musical & Dramatic Academy), Emerson College, the Musicians Institute, and AFI, situating themselves in Hollywood. In the past two years there has been a spike in the number of college students relocating to Hollywood. New restaurants and hotels are also setting up shop in Hollywood in response to the growing tech & entertainment boom such as TAO, The Dream Hotel, and Beauty & Essex. An astonishing number of additional apartments like The ICON building & The Lombardi will be built over the next decade. There is much more activity in Hollywood, reminding everyone that the evolving industry has returned to its roots. The future of what will be is brighter than ever.

4 LOCATION HOLLYWOOD DEVELOPMENTS TAMARIND AVE Sunset Bronson Studios Sunset Blvd Los Angeles, CA ,000 square feet of office space. Main Tenant: Netflix Columbia Square Sunset Blvd Los Angeles, CA million office, residential & retail mixed use complex. Main tenants: VIACOM (MTV, BET, Comedy Central) (10,000 employees), Fender (2000+ employees Siren Studios Sunset Blvd Los Angeles, CA Plans to replace existing 70,000 sq. ft of office space with up to 350,000 sq. ft. of live/work space Epic Sunset Blvd Los Angeles, CA (under construction) - 15 stories, 300,000 square feet of office space Sunset Gower Studios W. Sunset Blvd Los Angeles, CA (under construction) - Additional 628,000 square feet of production space The Lombardi 1717 Bronson Ave Los Angeles, CA (construction to begin early 2018) - 89 unit, luxury rental apartment complex ICON Building Sunset Blvd, Los Angeles, CA (construction to begin early 2018) - 89 unit, luxury rental apartment complex

5 LOCATION OVERVIEW Greek Theater Griffith Observatory Runyon Canyon Hollywood Bowl Schools American Film Institute Emerson College AMDA Musican s Institute The Magic Castle HOLLYWOOD Hollywood Pantages Theatre LOS FELIZ 1422 TAMARIND AVE Arclight Hollywood Movie Theater Hollywood & Vine Equinox Soul Cycle Shake Shack Katsuya Kabuki The Melt Trader Joe s ICON Building Los Angeles City College

6 PROPERTY SUMMARY PROPERTY DETAILS PROPERTY DESCRIPTION 1422 Tamarind Ave, this 17-unit apartment community is located just South of Sunset Blvd, in the neighborhood of Hollywood. Walking distance to a myriad of coffee shops, restaurants, theaters, and colleges. Walking proximity to over 1m square feet of brand new office space. Directly across from Sunset Gower Studios. The property features 14,244 square feet of rentable area, situated on a large 12,999 square foot lot zoned LAR4. This 17 unit building is comprised of (4) twobedroom, two-bathroom units, (12) one-bedroom, onebathroom units, and (1) studio unit. The building has been well maintained and includes a beautifully landscaped central courtyard. Approximately 20 parking spots included in the property. PROPERTY DETAILS Units 17 Major Intersection Between Sunset Blvd & Fountain Ave Market Hollywood APN Zoning Type LAR4 Building SF 14,244 SF Lot Size SF 12,999 SF TAMARIND AVE SUNSET BLVD BRONSON AVE

7 PROPERTY SUMMARY PROPERTY HIGHLIGHTS 17 UNITS IN HOLLYWOOD Heart of Hollywood location, south of Sunset and just east of Gower Conveniently located minutes from the Hollywood & Vine entertainment center, Metro Stations, and the 101 Freeway Directly adjacent to more than 1M square feet of new office space, including Sunset Gower Studios, Sunset Bronson Studios, and Netflix Bright, spacious units average 835 sq. ft. with great mix of (12) 1+1, (4) 2+2, and (1) studio Fully parked with approximately 20 spaces 2 large storage units generate additional income Ground floor units have large enclosed patios

8 FINANCIALS FINANCIAL OVERVIEW - $5,100,000 INVESTMENT SUMMARY SCHEDULED INCOME Purchase Price: $5,100,000 UNIT MIX CURRENT PRO FORMA Down Payment: $2,040,000 40% Units Beds Baths Average Monthly Rent Monthly Year Built: $1,966-$2,400 $8,866 $2,695 $10,780 Units: $842-$2,195 $17,963 $2,195 $26,340 Approx. Lot Size: 12,999 Sq. Ft. 1 Studio $859 $859 $1,895 $1,895 Approx. Bldg. NRSF: 14,244 Sq. Ft. Price per Unit: $300,000 Price per Sq. Ft. $358 Scheduled Rent: $27,688 $39,015 CURRENT PRO FORMA Storage Income: $500 $500 GRM: Laundry Income: $170 $170 CAP: 3.91% 6.43% Monthly Gross Income: $28,358 $39,685 ANNUAL INCOME Annual Gross Income: $340,296 $476,220 ANNUAL EXPENSES CURRENT PRO FORMA ITEM AMOUNT Scheduled Gross Income: $340,296 $476,220 Taxes: (based on new purchase price) 1.25% $63,750 Less Vacancy Reserve Rate: ($6,806) 2.00% * ($14,287) 3.00% Insurance: $5,698 Gross Operating Income: $333,490 $461,933 Utilities: $14,244 Less Expenses: ($133,849) 39% * ($133,849) 28% Repairs & Maintenance: $20,418 Net Operating Income: $199,641 $328,084 Onsite Mgmt: $26,340 Less Debt Service: ($184,966) ($184,966) Misc: $3,400 Pre-Tax Cash Flow: $14, % ** $143, % Plus Principal Reduction: $49,803 $49,803 Total Return Before Taxes: $64, % ** $192, % * As a percent of the scheduled gross income. ** As a percent of the down payment Total Expenses: $133,849 PROPOSED FINANCING INFORMATION Expense / NRSF: $9.40 Loan Rate Loan Duration 4.45% fixed for 5 yrs -$15,414 per month 30 yr EXPENSES ARE ESTIMATED (On-site Mgr receives free rent) Proposed Financing ` $3,060,000 Expense / Unit: $7,873

9 FINANCIALS RENT ROLL Unit # Unit Type Rent Rent Move-in Date Notes $1,700 $2,195 6/7/ $1,114 $2,195 1/1/ $1,500 $2,195 5/12/ $2,400 $2,695 4/15/ $1,966 $2,695 9/23/ $2,195 $2,195 On-site Mgr $842 $2,195 1/1/ $1,750 $2,195 3/20/ $842 $2,195 7/1/ $1,700 $2,195 10/9/ $1,420 $2,195 4/16/ $2,200 $2,695 10/1/ $1,700 $2,195 12/28/ $1,550 $2,195 9/30/ $1,650 $2,195 11/11/ Single $859 $1,895 3/15/ $2,300 $2,695 3/12/2018 Storage #1 N/A $300 $300 4/28/2016 Storage #2 N/A $200 $200 3/29/2013 Laundry $170 $170 MONTHLY TOTAL: ANNUAL TOTAL: $28,358 $39,685 $340,296 $476,220

10 FINANCIALS LOAN QUOTE Financing Provided By: Brian Weisberg Commercial Realty Consultants Direct: (818) x203

11 COMPARABLES SALES COMPS Property Photo Address Sale Price COE # of Units Price Per Foot Building SF Price/ Unit Year Built Unit Mix 1422 Tamarind Ave Hollywood, CA $5,100, $358 14,244 $300, (4) 2+2 (12) 1+1 (1) Studio N Kingsley Dr Los Angeles, CA $3,171,950 6/16/17 7 $462 6,867 $453, (4) 3+2 (1) 2+1 (2) Argyle Ave Los Angeles, CA $2,950,000 11/9/17 7 $519 5,686 $421, (1) 1+1 (5) 2+1 (1) Studio Afton Pl Los Angeles, CA $3,055,714 6/2/17 8 $503 6,071 $381, (5) (3) N Beachwood Dr Los Angeles, CA $3,825,000 5/5/17 11 $373 10,224 $347, (7) 2+1 (4) Fernwood Ave Los Angeles, CA $3,473,000 2/16/18 12 $294 11,832 $289, (6) 2 +1 (5) 1+1 (1) 3+2

12 COMPARABLES SALES COMPS Tamarind Ave Sales Comps N Kingsley Dr Argyle Ave Afton Pl N Beachwood Dr Fernwood Ave 5 1

13 COMPARABLES RENTAL COMPS Property Photo Address Rent Unit Type $1,1966-$2, Tamarind Ave Los Angeles $842-$1, $859 Studio Chula Vista Way Los Angeles $3, La Mirada Ave Los Angeles $2, N Kingsley Dr Los Angeles $2,100-2, $1,895 Studio N Bronson Ave Los Angeles $1,995-$2,195 Studio Carlos Ave Los Angeles $2, Santa Monica Blvd Los Angeles $2,

14 COMPARABLES RENTAL COMPS TAMARIND AVE Rental Comps Chula Vista Way La Mirada Ave N Kingsley Dr Bronson Ave Carlos Ave Santa Monica Blvd 2 6 4

15 PROPERTY SUMMARY PROPERTY PHOTOS

16 PROPERTY SUMMARY PROPERTY PHOTOS

17 FOR MORE INFORMATION PLEASE CONTACT: Kenny Stevens BRE# BRE# This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.