12303, 12304, 12311 & 12312 Grevillea Avenue, Hawthorne ......The information contained in the...

Por t fol io Sale of Four Separate Proper t ies

12303, 12304, 12311 & 12312

Hawthorne, CA 90250Grevillea Avenue,

JONATHAN NIKFARJAMManaging Principal

Of f ice: 310.593.9868Mobi le: 310.880.6807

jonathan.nik far jam@AdvisorsCommerc ialRE.comLicense: CA # 01856803

*Two of the units are non-conforming. 12304 Grevillea Avenue and 12311 Grevillea Ave-nue each contain one non-conforming unit.

CONFIDENTIALITY AGREEMENT

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party intended to be receiving it from Advisors Commercial Real Estate and should not be made available to any other person or entity without the written consent of Advisors Commercial Real Estate. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation nor shall any information contained herein be relied upon in connection with such due diligence. Advisors Commercial Real Estate has not made any investigation, and makes no warranty or representation, with respect to any aspect of the subject property or business, including but not limited to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Advisors Commercial Real Estate has not verified, and will not verify, any of the information contained herein, nor has Advisors Commercial Real Estate conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein and nothing contained herein is intended to be relied upon in any manner in connection with the purchase of the subject property.

Advisors Commercial Real Estate is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Advisors Commercial Real Estate, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Advisors Commercial Real Estate, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

SECTIONS

12303, 12304, 12311 & 12312 Grevillea Avenue, Hawthorne, CA 90250

12303, 12304, 12311 & 12312

I PROPERTY DESCRIPTION

II FINANCIAL ANALYSIS

Grevillea Avenue,Hawthorne, CA 90250

I. PROPERTY DESCRIPTION


PROPERTY PHOTOS



Advisors Commercial Real Estate is proud to present the portfolio sale of four properties located at 12303, 12304, 12311, & 12312 Grevillea Avenue in Hawthorne, California. The portfolio includes a total of 40 units* with a combined square footage of 32,699-square feet. These non-rent controlled assets are in close proximity to the Los Angeles Airport, the Forum, and the proposed NFL Ram’s Stadium. They are also nearby the many retail shops, office buildings, restaurants and grocery stores of El Segundo Boulevard and Hawthorne Boulevard. Bordered by the 405 and 105 Freeways, the investment possesses immediate transit to the many neighboring employment centers such as SpaceX, Tesla, Northrop Grumman, Los Angeles Times, Hollywood Park Tomorrow, Raytheon, and the Los Angeles Airport.

Situated on a combined lot size of 35,275-square feet, the offerings boast a unit mix of (7) two-bedroom/two-bathroom units, (9) two-bedroom/one-bathroom units, (24) one-bedroom/one-bathroom units, and (1) studio/one-bathroom unit. Three of the units are townhouse-style with a private balcony, two of the units have a fireplace, three of the units contain a den, and one of the units is townhouse-style with a den.

The buildings contain full copper plumbing, ample covered parking, and are individually metered for gas and electricity. Some of the units have been upgraded with tile flooring. Furthermore, there are a total of six on-site laundry facilities. The 12312 Grevillea Avenue property has washer/dryer hook-ups for each unit.

This portfolio provides an investor with the opportunity to own multiple 1980’s vintage properties located west of Hawthorne Boulevard. The properties contain over 22% in rental upside.

INVESTMENT OVERVIEW

» Portfolio Sale – 4 Separate Buildings Totaling 40 Units

» Non-Rent Controlled Assets – Located West of Hawthorne Boulevard in the Most Desirable Pocket of Hawthorne

» Strong Neighboring Employment: Space X, Tesla, and Aerospace Defense Companies

» Located within 3 Miles of the Hollywood Park Development Project and New Proposed NFL Stadium

» Outstanding Unit Mix

» 1980’s Vintage Buildings

» Full Copper Plumbing & Ample Covered Parking

» Six On-Site Laundry Facilities – Generating Additional Annual Income

» Washer/Dryer Hook-Ups in 12312 Grevillea Avenue Building

» Over 22% in Rental Upside

INVESTMENT HIGHLIGHTS

*Two of the units are non-conforming. 12304 Grevillea Avenue and 12311 Grevillea Avenue each contain one non-conforming unit.


PROPERTY INFORMATION

Property Address 12303, 12304, 12311 & 12312 Grevillea Avenue, Hawthorne, CA 90250Assessor’s Parcel Number 4041-003-030, 4041-002-026, 4041-003-032, 4041-002-053Land Use ApartmentsBuildings 4

Stories 3Zoning HAR3YYYear Built 1985/1988

SITE DESCRIPTION

Units 40*Rentable Square Feet 32,699Lot Size (SF) 35,275Parking Carport/Garage

UTILITIES

Water Master Metered Sewer Master Metered Electric Separately Metered Gas Separately Metered

CONSTRUCTION

Framing WoodExterior Stucco

PROPERTY PHOTOS


PROPERTY PHOTOS



PROPERTY PHOTOS

PROPERTY PHOTOS


PROPERTY PHOTOS


REGIONAL MAP

LOCATION MAP


II. FINANCIAL ANALYSIS


CURRENT MARKET

Unit No. Status Unit Type Monthly Rent Annual Rent Monthly Rent Annual Rent

1A OccupiedLarge 2-Bedroom/1-Bathroom with

Fireplace$1,420 $17,040 $1,850 $22,200

2A Occupied 1-Bedroom/1-Bathroom $970 $11,640 $1,495 $17,940

2B Occupied 1-Bedroom/1-Bathroom $1,320 $15,840 $1,495 $17,940

2C Occupied 1-Bedroom/1-Bathroom $1,245 $14,940 $1,495 $17,940

2D Occupied 1-Bedroom/1-Bathroom $1,245 $14,940 $1,495 $17,940

2E Occupied 1-Bedroom/1-Bathroom $1,395 $16,740 $1,495 $17,940

3A Occupied 1-Bedroom/1-Bathroom $1,245 $14,940 $1,495 $17,940



3D Occupied 1-Bedroom/1-Bathroom + Den $1,550 $18,600 $1,650 $19,800


TOTAL $14,330 $171,960 $16,955 $203,460

RENT ROLL

12303 GREVILLEA AVENUE

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. © 2018 Advisors Commercial Real Estate


CURRENT MARKET


1A* Occupied *Studio/1-Bathroom $700 $8,400 $900 $10,800










3E** Vacant 1-Bedroom/1-Bathroom $1,495 $17,940 $1,495 $17,940

TOTAL $13,910 $166,920 $18,280 $219,360

RENT ROLL




*Unit #1A does not have kitchen**Unit #3E will be delivered vacant.*Unit #1A is non-conforming.


CURRENT MARKET


1A OccupiedLarge 2-Bedroom/2-Bathroom with

Fireplace$1,670 $20,040 $1,895 $22,740









3D Occupied 1-Bedroom/1-Bathroom + Den $1,495 $17,940 $1,650 $19,800

3E Occupied 1-Bedroom/1-Bathroom + Den $1,250 $15,000 $1,650 $19,800

TOTAL $14,610 $175,320 $17,155 $205,860

RENT ROLL



*One of the units is non-conforming.


CURRENT MARKET


1* Occupied 1-Bedroom/1-Bathroom + Den Townhouse $1,695 $20,340 $1,695 $20,340

2 Occupied2-Bedroom/1-Bathroom Townhouse

with Balcony$1,475 $17,700 $2,150 $25,800

3** Vacant2-Bedroom/1-Bathroom Townhouse

with Balcony$2,150 $25,800 $2,150 $25,800

4 Occupied2-Bedroom/1-Bathroom Townhouse

with Balcony$1,575 $18,900 $2,150 $25,800

5 Occupied 2-Bedroom/1-Bathroom $1,250 $15,000 $1,795 $21,540



TOTAL $10,775 $129,300 $13,530 $162,360

RENT ROLL



*Unit #1 is currently occupied by manager.**Unit #3 is currently vacant.

Income Current Per Unit Pro Forma Per Unit

Scheduled Rent Income $643,500 $16,088 $791,040 $19,776

Other Income (Laundry) $3,404 $85 $3,404 $85

GROSS POTENTIAL INCOME $646,904 $16,173 $794,444 $19,861

Vacancy/Collection Allowance (GPR) 5.0%/$32,175 $804 5.0%/$39,552 $989

EFFECTIVE GROSS INCOME $614,729 $15,368 $754,892 $18,872

Expenses

Taxes (1.25%) $134,625 $3,366 $134,625 $3,366

Insurance ($0.45/sq. ft. ) $14,715 $368 $14,715 $368

Water (Actual) $20,247 $506 $20,247 $506

Trash (Actual) $6,602 $165 $6,602 $165

Electricity (Actual) $3,544 $89 $3,544 $89

Gas (Actual) $3,301 $83 $3,301 $83

Management Fee (4% of EGI) $24,589 $615 $30,196 $755

Gardener ($240/month) $2,880 $72 $2,880 $72

Repairs & Maintenance ($300/unit) $12,000 $300 $12,000 $300

Reseveres & Replacements ($200/unit) $8,000 $200 $8,000 $200

TOTAL EXPENSES $230,502 $5,763 $236,109 $5,903

Expenses per SF $7.05 $7.22

Expenses per Unit $5,763 $5,903

% of EGI 37.5% 31.3%

NET OPERATING INCOME $384,227 $518,783

INCOME & EXPENSE

NOTES: Some Expenses Are Estimated. *Two of the units are non-conforming. 12304 Grevillea Avenue and 12311 Grevillea Avenue each contain one non-conforming unit.

Total Number of Units: 40*Total Rentable area: 32,699 SF


Annualized Income & ExpenseCurrent Pro Forma

INCOME

Scheduled Rent Income $643,500 $791,040

Other Income $3,404 $3,404

Scheduled Gross Income $646,904 $794,444

Less: Vacancy/Other Deductions 5.0% $32,175 5.0% $39,552

Effective Gross Income $614,729 $754,892

Less: Operating Expenses 37.5% $230,502 31.3% $236,109

Net Operating Income $384,227 $518,783

Debt Service ($272,322) ($272,322)

Pre-Tax Cash Flow 1.81% $110,905 4.00% $245,461

Principal Reduction ($78,056) ($78,056)

Total Return Before Taxes 3.08% $157,119 5.27% $323,517

CURRENT MARKET

Unit Mix # of Units Average RentMonthlyIncome

Average RentMonthlyIncome

Studio/1-Bath 1 $700 $700 $900 $900

1-Bed/1-Bath 20 $1,270 $25,395 $1,495 $29,900

1-Bed/1-Bath + Den 3 $1,432 $4,295 $1,650 $4,950

1-Bed/1-Bath + Den Twnhs 1 $1,695 $1,695 $1,695 $1,695

2-Bed/1-Bath 4 $1,301 $5,205 $1,795 $7,180

2-Bed/1-Bath w/ Fireplace 1 $1,420 $1,420 $1,850 $1,850

2-Bed/1-Bath Twnhs w/ Balcony 3 $1,733 $5,200 $2,150 $6,450

2-Bed/2-Bath 6 $1,341 $8,045 $1,850 $11,100

2-Bed/2-Bath w/ Fireplace 1 $1,670 $1,670 $1,895 $1,895

Current Occupancy: 95% 40 Annual Current: $643,500 Annual Market: $791,040

Annualized ExpensesOperating Expenses Current Pro Forma

Taxes (1.25%) $134,625 $134,625

Insurance ($0.45/sq. ft. ) $14,715 $14,715

Water (Actual) $20,247 $20,247

Trash (Actual) $6,602 $6,602

Electricity (Actual) $3,544 $3,544

Gas (Actual) $3,301 $3,301

Management Fee (4% of EGI) $24,589 $30,196

Gardener ($240/month) $2,880 $2,880

Repairs & Maintenance ($300/unit) $12,000 $12,000

Reseveres & Replacements ($200/unit) $8,000 $8,000

Total Expenses: $230,502 $236,109

Total Expenses per Unit: $5,763 $5,903

Total Expenses per Sq. Ft.: $7.05 $7.22

Property Information

Address 12303, 12304, 12311 & 12312 Grevillea Avenue

Hawthorne, CA 90250

No. of Units 40*

Year Built 1985/1988

Lot Size (SF) 35,275

Lot Size (AC) 0.81

Net Rentable SF: 32,699

APN 4041-003-0304041-002-0264041-003-0324041-002-053

FinancingLoan Amount $4,630,000

Interest Rate 4.25%

Monthly Payment $22,776.83

Loan-to-Value 43%

Amortization (Years) 30

Debt Service Coverage Ratio 1.41

Term 5 Year Fixed

Price $10,770,000Down 57% $6,140,000

Current Cap 3.57%

Pro Forma Cap 4.82%

Price/Unit $269,250

Price/SF $329.37

Current GRM 16.74

Pro Forma GRM 13.61

Ownership Fee Simple

FINANCIAL SUMMARY

*Two of the units are non-conforming. 12304 Grevillea Avenue and 12311 Grevillea Avenue each contain one non-conforming unit.

Date post:	05-Jul-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

12303, 12304, 12311 & 12312 Grevillea Avenue, Hawthorne ......The information contained in the...

Documents