12304-12312 Grevillea Avenue, Hawthorne, CA 90250...An 18-Unit Apartment Opportunity. 12304-12312....

An 18-Unit Apar tment Oppor tunity

12304-12312 Grevillea Avenue,Hawthorne, CA 90250

JONATHAN NIKFARJAMManaging Principal

Of f ice: 310.593.9868Mobi le: 310.880.6807

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

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.

*12304 Grevillea Avenue has one non-conforming unit.

NON-ENDORSEMENT NOTICE

SECTIONS

12304-12312 Grevillea Avenue, Hawthorne, CA 90250

12304-12312 Grevillea Avenue,Hawthorne, CA 90250

I PROPERTY DESCRIPTION

II FINANCIAL ANALYSIS

I. PROPERTY DESCRIPTION



Advisors Commercial Real Estate is proud to present this 14,485-square foot, eighteen-unit* property located at 12304 & 12312 Grevillea Avenue in Hawthorne, California. The property is comprised of two apartment buildings situated on two separate parcels that must be sold together. This non-rent controlled asset is in close proximity to the Los Angeles Airport, the Forum, and the proposed NFL Ram’s Stadium. It is 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 18,119-square feet, the offerings boast a unit mix of (six) two-bedroom/two-bathroom units, (7) two-bedroom/one-bathroom units, (4) one-bedroom/one-bathroom units, and (1) studio/one-bathroom unit. Three of the two-bedroom units are townhouse-style with a private balcony and one of the one-bedroom 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 two on-site laundry facilities. The 12312 Grevillea Avenue property contains three double-car garages and washer/dryer hook-ups for each unit.

12304 & 12312 Grevillea Avenue provide an investor with the opportunity to own two 1988 vintage properties located west of Hawthorne Boulevard. The asset contains over 27% in rental upside.

INVESTMENT OVERVIEW

» Non-Rent Controlled Asset – Located West of Hawthorne Boulevard

» 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

» 1988 Vintage Buildings

» Full Copper Plumbing & Ample Covered Parking

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

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

» Over 27% in Rental Upside

INVESTMENT HIGHLIGHTS

*12304 Grevillea Avenue has one non-conforming unit. Total of 17 units plus 1 non-conforming unit.


PROPERTY INFORMATION

Property Address 12304-12312 Grevillea Avenue, Hawthorne, CA 90250Assessor’s Parcel Number 4041-002-026, 4041-002-053Land Use ApartmentsBuildings 2

Stories 3Zoning HAR3Year Built 1988

SITE DESCRIPTION

Units 18*Rentable Square Feet 14,485Lot Size (SF) 18,119Parking Garage/Carport

UTILITIES

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

CONSTRUCTION

Framing WoodExterior Stucco

PROPERTY PHOTOS


PROPERTY PHOTOS


PROPERTY PHOTOS


REGIONAL MAP

LOCATION MAP



AERIAL VIEW

II. FINANCIAL ANALYSIS


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

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

CURRENT MARKET

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

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

2A Occupied 2-Bedroom/1-Bathroom $1,325 $15,900 $1,795 $21,540

2B Occupied 2-Bedroom/2-Bathroom $1,445 $17,340 $1,850 $22,200

2C Occupied 2-Bedroom/2-Bathroom $1,750 $21,000 $1,850 $22,200

2D Occupied 2-Bedroom/2-Bathroom $1,140 $13,680 $1,850 $22,200

2E Occupied 1-Bedroom/1-Bathroom $1,295 $15,540 $1,495 $17,940

3A Occupied 1-Bedroom/1-Bathroom $1,050 $12,600 $1,495 $17,940

3B Occupied 2-Bedroom/2-Bathroom $1,445 $17,340 $1,850 $22,200

3C Occupied 2-Bedroom/2-Bathroom $1,445 $17,340 $1,850 $22,200

3D Occupied 2-Bedroom/2-Bathroom $1,070 $12,840 $1,850 $22,200

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

TOTAL $14,160 $169,920 $18,280 $219,360

RENT ROLL

12304 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

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

1* Occupied1-Bedroom/1-Bathroom + Den Town-

house$1,695 $20,340 $1,695 $20,340

2 Occupied2-Bedroom/1-Bathroom Townhouse

w/Balcony$1,475 $17,700 $2,150 $25,800


w/Balcony$2,100 $25,200 $2,150 $25,800


w/Balcony$1,575 $18,900 $2,150 $25,800

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



TOTAL $10,725 $128,700 $13,530 $162,360

RENT ROLL

12312 GREVILLEA AVENUE

*Unit 1 is currently occupied by manager.


Income Current Per Unit Pro Forma Per Unit

Scheduled Rent Income $298,620 $16,590 $381,720 $21,206

Other Income (Laundry/Misc. Fees) $1,211 $67 $1,211 $67

GROSS POTENTIAL INCOME $299,831 $16,657 $382,931 $21,274

Vacancy/Collection Allowance (GPR) 5.0%/$14,931 $830 5.0%/$19,086 $1,060

EFFECTIVE GROSS INCOME $284,900 $15,828 $363,845 $20,214

Expenses

Taxes (1.25%) $63,375 $3,521 $63,375 $3,521

Insurance ($0.45/sq. ft. ) $6,518 $362 $6,518 $362

Water (Actual) $11,665 $648 $11,665 $648

Trash (Actual) $3,254 $181 $3,254 $181

Electricity (Actual) $1,271 $71 $1,271 $71

Gas (Actual) $215 $12 $215 $12

Management Fee (4% of EGI) $11,396 $633 $14,554 $808

Gardener ($120/month) $1,440 $80 $1,440 $80

Repairs & Maintenance ($300/unit) $5,400 $300 $5,400 $300

Reseveres & Replacements ($200/unit) $3,600 $200 $3,600 $200

TOTAL EXPENSES $108,134 $6,007 $111,292 $6,183

Expenses per SF $7.47 $7.68

Expenses per Unit $6,007 $6,183

% of EGI 38.0% 30.6%

NET OPERATING INCOME $176,766 $9,820 $252,553 $14,031

INCOME & EXPENSE

NOTES: Some Expenses Are Estimated. *12304 Grevillea Avenue has one non-conforming unit.

Total Number of Units: 18*Total Rentable area: 14,485 SF


Annualized Income & ExpenseCurrent Pro Forma

INCOME

Scheduled Rent Income $298,620 $381,720

Other Income $1,211 $1,211

Scheduled Gross Income $299,831 $382,931

Less: Vacancy/Other Deductions 5.0% $14,931 5.0% $19,086

Effective Gross Income $284,900 $363,845

Less: Operating Expenses 38.0% $108,134 30.6% $111,292

Net Operating Income $176,766 $252,553

Debt Service ($127,511) ($127,511)

Pre-Tax Cash Flow 1.69% $49,255 4.30% $125,042

Principal Reduction ($36,415) ($36,415)

Total Return Before Taxes 2.94% $85,670 5.55% $161,457

CURRENT MARKET

Unit Mix # of Units Average RentMonthlyIncome

Average RentMonthlyIncome

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

1 Bed/1-Bath 3 $1,280 $3,840 $1,495 $4,485

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 Twnhs w/ Balcony 3 $1,717 $5,150 $2,150 $6,450

2-Bed/2-Bath 6 $1,383 $8,295 $1,850 $11,100

Current Occupancy: 94% 18 Annual Current: $298,620 Annual Market: $381,720

Annualized ExpensesOperating Expenses Current Pro Forma

Taxes (1.25%) $63,375 $63,375

Insurance ($0.45/sq. ft. ) $6,518 $6,518

Water (Actual) $11,665 $11,665

Trash (Actual) $3,254 $3,254

Electricity (Actual) $1,271 $1,271

Gas (Actual) $215 $215

Management Fee (4% of EGI) $11,396 $14,554

Gardener ($120/month) $1,440 $1,440

Repairs & Maintenance ($300/unit) $5,400 $5,400

Reseveres & Replacements ($200/unit) $3,600 $3,600

Total Expenses: $108,134 $111,292

Total Expenses per Unit: $6,007 $6,183

Total Expenses per Sq. Ft.: $7.47 $7.68

Property InformationAddress 12304-12312 Grevillea Avenue

Hawthorne, CA 90250

No. of Units 18*

Year Built 1988

Lot Size (SF) 18,119

Lot Size (AC) 0.42

Net Rentable SF: 14,485

APN 4041-002-026, 4041-002-053

FinancingLoan Amount $2,160,000

Interest Rate 4.25%

Monthly Payment $10,625.92

Loan-to-Value 43%

Amortization (Years) 30

Debt Service Coverage Ratio 1.39

Term 5 Year Fixed

Price $5,070,000Down 57% $2,910,000

Current Cap 3.49%

Pro Forma Cap 4.98%

Price/Unit $281,667

Price/SF $350.02

Current GRM 16.98

Pro Forma GRM 13.28

Ownership Fee Simple

FINANCIAL SUMMARY

*12304 Grevillea Avenue has one non-conforming unit.


Jonathan Nik farjamMulti -Family Investment Sales

Managing PrincipalOffice: 310.593.9868Mobile: 310.880.6807

300 N. Continental Blvd, Suite 100El Segundo, CA 90245

jonathan.nik far [email protected]: CA # 01856803

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12304-12312 Grevillea Avenue, Hawthorne, CA 90250...An 18-Unit Apartment Opportunity. 12304-12312....

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