12211-12221
OFFERING MEMORANDUM12211-12221 Vanowen St. | North Hollywood, CA 91605
28 Unit Multi-Family Investment Offering
Each office independently owned and operated
28 Unit North Hollywood Investment Offering12211-12221 Vanowen St | North Hollywood, CA 91605
STEPHEN LAMPEExecutive Vice President(310) [email protected] #01164364
Very well maintained property with gated parking and secured entrance➢
28 units on 2 parcels totaling 22,921 SF of land➢
Approximately 40% upside in rent rates as units turnover➢
Recent capital expenditures include new roofs, new decking/stairs, newexterior paint, new automated parking gate
➢
Excellent location minutes from NoHo Arts District, convenient accessto freeways and employment centers
➢
RE/MAX COMMERCIAL & INVESTMENT REALTY23001 Hawthorne Blvd, Suite 205Torrance, CA 90505(310) 802-2500www.remaxcir.com
INVESTMENT DETAILS12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
ANALYSIS
Analysis Date July 2018
PROPERTY
Property 28 Unit North Hollywood InvestmentProperty Address 12211-12221 Vanowen St
North Hollywood, CA 91605
Year Built 1958
FINANCIAL INFORMATION
All Cash
PURCHASE INFORMATION
Property Type MultiFamilyPurchase Price $4,750,000Units 28Total Rentable Sq. Ft. 17,394
LOANS
Type Debt Term Amortization Rate Payment LO CostsAll Cash
INCOME & EXPENSES
Gross Operating Income $357,024Monthly GOI $29,752Total Annual Expenses ($165,683)Monthly Expenses ($13,807)
EXECUTIVE SUMMARY12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Acquisition CostsPurchase Price, Points and Closing Costs $4,750,000Investment - Cash $4,750,000
Investment InformationPurchase Price $4,750,000Price per Unit $169,643Price per Sq. Ft. $273.08Income per Unit $13,140Expenses per Unit ($5,917)
Income, Expenses & Cash FlowGross Scheduled Income $367,913Total Vacancy and Credits ($10,889)Operating Expenses ($165,683)Net Operating Income $191,341Debt Service $0Cash Flow Before Taxes $191,341
Financial IndicatorsCash on Cash Return Before Taxes 4.03%
Debt Coverage Ratio N/ACapitalization Rate 4.03%Gross Rent Multiplier 12.91Gross Income / Square Feet $21.15Gross Expenses / Square Feet ($9.53)Operating Expense Ratio 46.41%
PROPERTY DESCRIPTION12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
INVESTMENT OFFERINGPROPERTY DESCRIPTION: The investment offering is a 28 unit multifamily investment property comprised of two 14 unit apartment complexes ontwo separate, but adjacent parcels. Each building has 12 one bedroom one bath units, and 2 two bedroom one bathunits. The property has been very well maintained by the same family who has owned and operated the building fortwo generations. Over the years, approximately 50% of the plumbing has been upgraded to copper piping. Recentcapital improvements consist of new roofs, new decking/stairs, new exterior paint, new automated parking gate. Severalunits have been upgraded with hardwood floors and stainless steel appliances as they have turned over, yielding up toa 40% increase in rent rates. The property has a common driveway entering the secured parking with 14 tuck underparking spaces per building for a total of 28 vehicles. The property is subject to the Soft-Story Retrofit Ordinance#183893 which the buyer shall be responsible for compliance after the closing. This is an excellent turn-key investmentwith significant upside.
LOCATION: The property is located in North Hollywood, just minutes from the NOHO Arts District, Universal Studios, Burbank,Toluca Lake and Sherman Oaks, and is within a few blocks of the Whitsett Sports Fields, Bellingham Elementary,eateries, and Ralphs Grocery on Laurel Canyon. This location provides convenient access to the major employmentcenters of Downtown Los Angeles and Hollywood via the 170/134/101 freeway system. There has been continueddemand for new apartment units in North Hollywood, as the area has experienced a significant increase in employmentopportunities and commercial investment over the past several years.
FINANCIAL SUMMARY12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
UNIT MIX & MONTHLY SCHEDULED
Type Units Actual Total Proforma Total One Bedroom One Bath 24 $1,043 $25,021 $1,190 $28,560Two Bedroom One Bath 4 $1,307 $5,226 $1,350 $5,400TOTALS 28 $30,247 $33,960
ANNUALIZED INCOME Description Actual Proforma
Gross Potential Rent $362,969 $407,520Less: Vacancy ($10,889) ($12,226)Misc. Income $4,944 $4,944Effective Gross Income $357,024 $400,238Less: Expenses ($165,683) ($161,621)Net Operating Income $191,341 $238,617
ANNUALIZED EXPENSES Description Actual Proforma
Property Tax (New 1.193%) $56,668 $56,668Building Insurance $5,965 $5,965Electric $2,415 $2,415Gas $6,913 $6,913Water $18,721 $18,721Sewer $13,854 $13,854Trash Collection $4,933 $4,933Maintenance & Repairs $23,662 $19,600Management Fees $14,206 $14,206Onsite Management $3,824 $3,824Legal Fees / License & Permits $3,323 $3,323Reserves $11,200 $11,200Total Expenses $165,683 $161,621Expenses Per RSF $9.53 $9.29Expenses Per Unit $5,917 $5,772
INVESTMENT SUMMARY
Price: $4,750,000Year Built: 1958Units: 28Price/Unit: $169,643RSF: 17,394Price/RSF: $273.08Lot Size: 22,921 sfFloors: 2APN: 2321-013-063;062Cap Rate: 4.03%Proforma Cap Rate: 5.02%GRM: 12.91Proforma GRM: 11.52
RENT ROLL12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Unit Bed / Bath Rent Notes12211 A 1 Bed / 1 Bath $1,024.3112211 B 1 Bed / 1 Bath $816.3912211 C 1 Bed / 1 Bath $1,390.5012211 D 1 Bed / 1 Bath $924.5312211 E 2 Bed / 1 Bath $1,467.8612211 F 1 Bed / 1 Bath $1,089.4312211 G 1 Bed / 1 Bath $816.3912211 H 1 Bed / 1 Bath $1,037.5612211 I 1 Bed / 1 Bath $1,069.2412211 J 2 Bed / 1 Bath $1,005.2412211 K 1 Bed / 1 Bath $816.3912211 L 1 Bed / 1 Bath $1,390.5012211 M 1 Bed / 1 Bath $1,044.7912211 N 1 Bed / 1 Bath $840.8812221 A 1 Bed / 1 Bath $985.3812221 B 1 Bed / 1 Bath $1,087.2712221 C 1 Bed / 1 Bath $1,076.7412221 D 1 Bed / 1 Bath $985.3812221 E 2 Bed / 1 Bath $1,058.0812221 F 1 Bed / 1 Bath $1,495.0012221 G 1 Bed / 1 Bath $1,044.7912221 H 1 Bed / 1 Bath $1,373.8612221 I 1 Bed / 1 Bath $821.7912221 J 2 Bed / 1 Bath $1,695.00 Manager12221 K 1 Bed / 1 Bath $865.2012221 L 1 Bed / 1 Bath $1,395.0012221 M 1 Bed / 1 Bath $814.9312221 N 1 Bed / 1 Bath $814.93
Total: $30,247.36
RENT SURVEY12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Address Beds Baths Rent
6717 Wilkinson Ave 1 1 $1,385
6819 Hinds Ave 1 1 $1,395
6706 Laurelgrove Ave 1 1 $1,450 Median $1,450
6835 Laurel Canyon Blvd 1 1 $1,500
6706 Laurelgrove Ave 1 1 $1,545
6841 Whitsett Ave 1 1 $1,700
Average: $1,496
12300 Sherman Way 2 1 $1,538
6836 Radford Ave 2 2 $1,825
6901 Laurel Canyon Blvd 2 2 $1,850
11835 Vanowen St 2 2 $1,895 Median $1,895
11850 Dehougne St 2 1 $1,950
6900 Laurel Canyon Blvd 2 2 $2,095
6949 Laurel Canyon Blvd 2 1 $2,110
Average: $1,895
PROPERTY PHOTOS12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
PROPERTY PHOTOS12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
PROPERTY PHOTOS12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
PROPERTY PHOTOS12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
SALE COMPARABLES12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Subject 1 2 3 4 5 6
1%
2%
3%
4%
5%
6%
7%
8%
Avg.4.435
Cap Rate
Subject 1 2 3 4 5 6
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Avg.13.667
Gross Rent Multiplier
Subject 1 2 3 4 5 6
$31,000
$62,000
$93,000
$124,000
$155,000
$186,000
$217,000
$248,000
Avg.$197,302
Price per Unit
Subject 1 2 3 4 5 6
$35
$70
$105
$140
$175
$210
$245
$280
Avg.$223.27
Price per Sq. Ft.
SALE COMPARABLES12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
S 28 Unit North Hollywood Investment Offering12211-12221 Vanowen StNorth Hollywood, CA 91605
Sale Price $4,750,000Units 28Price/Unit $169,643Price/SqFt $273.08Cap Rate 4.03%Year Built 1958GRM 12.91
# Units Unit Type24 One Bedroom One Bath4 Two Bedroom One Bath
1 7027 Fulton AveNorth Hollywood, CA 91605
Sale Price $1,150,000Units 6Price/Unit $191,667Price/SqFt $232.09Cap Rate 4.52%Year Built 1957Sale Date 4/17/2018GRM 14.0
# Units Unit Type2 One Bedroom One Bath3 Two Bedroom One Bath1 Three Bedroom Two Bath
2 13135 Vanowen StNorth Hollywood, CA 91605
Sale Price $3,450,000Units 14Price/Unit $246,429Price/SqFt $228.98Cap Rate 4.03%Year Built 1960Sale Date 3/30/2018GRM 13.9
# Units Unit Type1 One Bedroom One Bath6 Two Bedroom One Bath2 Two Bedroom Two Bath5 Three Bedroom Two Bath
SALE COMPARABLES12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
3 12641-12647 Vanowen StNorth Hollywood, CA 91605
Sale Price $2,150,000Units 12Price/Unit $179,167Price/SqFt $232.43Cap Rate 4.48%Year Built 1956Sale Date 9/29/2017GRM 13.7
# Units Unit Type4 One Bedroom One Bath8 Two Bedroom One Bath
4 7100 Fulton AveNorth Hollywood, CA 91605
Sale Price $7,300,000Units 41Price/Unit $178,049Price/SqFt $229.63Cap Rate 4.65%Year Built 1960Sale Date 8/18/2017GRM 12.7
# Units Unit Type22 One Bedroom One Bath19 Two Bedroom One Bath
5 6938 Coldwater Canyon AveNorth Hollywood, CA 91605
Sale Price $1,855,000Units 10Price/Unit $185,500Price/SqFt $172.62Cap Rate 4.1%Year Built 1964Sale Date 7/14/2017GRM 13.7
# Units Unit Type4 One Bedroom One Bath6 Two Bedroom Two Bath
SALE COMPARABLES12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
6 13127-13129 Vanowen StNorth Hollywood, CA 91605
Sale Price $1,015,000Units 5Price/Unit $203,000Price/SqFt $243.87Cap Rate 4.83%Year Built 1960Sale Date 5/10/2017GRM 14.0
# Units Unit Type2 One Bedroom One Bath2 Two Bedroom One Bath1 Three Bedroom One Bath
SALE COMPARABLES12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
S 12211-12221 Vanowen StNorth Hollywood, CA, 91605$4,750,000
1 7027 Fulton AveNorth Hollywood, CA, 91605$1,150,000
2 13135 Vanowen StNorth Hollywood, CA, 91605$3,450,000
3 12641-12647 Vanowen StNorth Hollywood, CA, 91605$2,150,000
4 7100 Fulton AveNorth Hollywood, CA, 91605$7,300,000
5 6938 Coldwater Canyon AveNorth Hollywood, CA, 91605$1,855,000
6 13127-13129 Vanowen StNorth Hollywood, CA, 91605$1,015,000
MAPS AND AERIALS12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
LOCATION MAP12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
REGIONAL MAP12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
DEMOGRAPHICS12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Population 1 Mile 3 Mile 5 Mile
Male 20,434 (52.09 %) 160,148 (50.13 %) 353,397 (49.15 %)Female 18,795 (47.91 %) 159,321 (49.87 %) 365,632 (50.85 %)Total Population 39,229 319,469 719,029
Age Breakdown 1 Mile 3 Mile 5 Mile
Ages 0-4 2,418 (6.16 %) 18,828 (5.89 %) 42,759 (5.95 %)Ages 5-9 2,859 (7.29 %) 21,876 (6.85 %) 49,863 (6.93 %)Ages 10-14 2,612 (6.66 %) 19,603 (6.14 %) 44,873 (6.93 %)Ages 15-19 2,569 (6.55 %) 19,037 (5.96 %) 43,165 (6.00 %)Ages 20-24 2,802 (7.14 %) 20,842 (6.52 %) 45,964 (6.39 %)Ages 25-29 2,907 (7.41 %) 22,138 (6.93 %) 48,169 (6.70 %)Ages 30-34 2,962 (7.55 %) 23,048 (7.21 %) 50,361 (7.00 %)Ages 35-39 3,024 (7.71 %) 24,272 (7.60 %) 53,686 (7.47 %)Ages 40-44 3,065 (7.81 %) 25,331 (7.93 %) 56,995 (7.93 %)Ages 45-49 3,028 (7.72 %) 25,448 (7.97 %) 57,969 (8.06 %)Ages 50-54 2,697 (6.88 %) 23,429 (7.33 %) 53,402 (7.43 %)Ages 55-59 2,330 (5.94 %) 20,432 (6.40 %) 46,464 (6.46 %)Ages 60-64 1,894 (4.83 %) 16,704 (5.23 %) 37,785 (5.26 %)Ages 65-69 1,393 (3.55 %) 12,695 (3.97 %) 28,732 (4.00 %)Ages 70-74 1,016 (2.59 %) 9,097 (2.85 %) 20,537 (2.86 %)Ages 75-79 663 (1.69 %) 6,288 (1.97 %) 14,148 (1.97 %)Ages 80-84 412 (1.05 %) 4,055 (1.27 %) 9,280 (1.29 %)Ages 85+ 578 (1.47 %) 6,346 (1.99 %) 14,877 (2.07 %)
DEMOGRAPHICS12211-12221 Vanowen St | North Hollywood, CA 91605
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Household Income 1 Mile 3 Mile 5 Mile
Median Income $40,703 $49,134 $54,070Less than $10,000 891 6,448 13,487$10,000 -$14,999 912 6,781 14,058$15,000 - $19,999 994 7,487 14,769$20,000 -$24,999 1,119 6,637 14,424$25,000 - $29,999 1,064 6,901 13,716$30,000 - $34,999 820 6,065 13,516$35,000 - $39,999 671 5,140 11,848$40,000 - $44,999 680 5,789 12,624$45,000 - $49,999 524 4,466 10,487$50,000 - $59,999 859 9,665 20,077$60,000 - $74,999 1,067 10,791 24,788$75,000 - $99,999 1,078 12,214 29,311$100,000 - $124,999 592 7,458 18,644$125,000 - $149,999 253 3,639 10,090$150,000 - $199,999 437 4,235 11,246Greater than $200,000 128 3,068 11,768
Housing 1 Mile 3 Mile 5 Mile
Housing Units 12,924 116,896 266,729Occupied Units 12,242 109,881 250,764Owner Occupied Units 3,590 40,276 97,953Renter Occupied Units 8,652 69,605 152,811Vacant Units 682 7,015 15,965
Race Demographics 1 Mile 3 Mile 5 Mile
Population Non Hispanic White 19,527 179,610 409,649Population Black 1,170 10,041 21,747Population Am In/Ak Nat 82 603 1,244