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1 16-Unit Multifamily Investment 3209 Descanso Drive Los Angeles, CA 90026
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16-Unit Multifamily Investment
3 2 0 9 Descanso Dr iveLos Angeles, CA 90026
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sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or
lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected
financial performance of the property for any party’s intended use or any and all other matters. Neither KW Commercial its directors, officers,
agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or
information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for
review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such
party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspec-
tions and investigations including through appropriate third party independent professionals selected by such party. All financial data should
be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent
professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial
data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and as-
sumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance.
Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at
or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy
factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attor-
ney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed
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plicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants
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make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental
or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for
example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct
your own investigation of the property and transaction
CONFIDENTIALITY & DISCLAIMER
Exclusively Listed By:
Rich JohnsMultifamily Investment [email protected]
CalBRE Lic. #01432215
David WeinbergerMultifamily Investment [email protected]
CalBRE Lic. #01349349
Adam ZunderMultifamily Investment [email protected]
CalBRE Lic. #01821053
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041214192430
PROPERTY DESCRIPTION
EXECUTIVE SUMMARY
FLOOR PLANS
PAGE
LOCATION
MARKET COMPARABLES
DEMOGRAPHICS
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P R O P E R T Y D E S C R I P T I O N
THE O F F E R I N G
KW Commercial is pleased to present 3209 Descanso Drive, a 16 unit apartment com-munity in L.A.’s most compelling rental market, Silver Lake, CA (90026). The offering, built in 1928, is less than one block from the iconic Sunset Blvd., and mere steps away from nearby entertainment venues.
The asset’s vibrant atmosphere reflects the energy of the local community with a unit mix which is perfectly positioned to attract the area’s discerning Gen-Y demographic and consists of Nine (9) Singles, and Seven (7) One Bedroom-One Bathroom apartment homes.
The current ownership has executed an impressive renovation strategy that has attract-ed and supported excellent market rents with well qualified residents for the newly renovated apartment homes. Eight (8) of the sixteen (16) apartment homes (50% of units) feature reimagined interiors with expanded doorways / inner spaces, gut-level renovated baths and kitchens, new gleaming wood floors, new doors, lighting, locks, and hardware.
The common and exterior spaces have been updated and are highlighted by new floor-ing, lighting, laundry facilities, stairwells, and public outdoor spaces. The exterior has been transformed with new color patterns, awnings, and drought resistant landscaping.
The roof has recently been upgraded with a cool roof system and the foundation has recently been retrofitted.
3209 Descanso Drive also features a vacant +/-2,250 SF flex space (partially improved) on the main level with private entry that has the potential to be realized as an addition-al amenity package / profit center thus creating an additional value-add opportunity.
Silver Lake is as diverse as the people living in it. It’s home to many artists, writers, and musicians, like Beck and Moby (who owns a SL vegan restaurant - Little Pine) just to name a few. Thanks to its neighborhood feel, Silver Lake is the perfect area for young people looking for a dynamic location and young families seeking out good schools and a community vibe. Silver Lake is continually growing — with an ever-increasing mix of stylish boutiques, restaurants, bars, coffee shops, and everything in between.
HIGHLIGHTS
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i n v e s t m e n t h i g h l i g h t s
the OPPORtUnitY: 3209 Descanso Drive is a 16-unit investment opportunity located in Silver Lake, a densely populated rental submarket of Los Angeles known for excellent rent growth and very low vacancy rates.
IMMEDIATE RETURNS: 3209 Descanso Drive has undergone a systematic renovation of 8 of the 16 of units (50%) in addition to the common areas which help to achieve strong market rents, creating strong and stable investor returns.
QUALITY RENOVATIONS: 3209 Descanso Drive unit interiors feature completely reimagined interior spaces, gut-level renovated baths and kitchens, new gleaming wood flooring, new doors, lighting, locks, hardware and designer finishes throughout.
The roof has recently been upgraded with a cool roof system and the foundation has recently been retrofitted.
3209 Descanso Drive’s common areas have undergone a dynamic renovation highlighted by new flooring and lighting in the hallways & stairwells, laundry facilities and public outdoor spaces. The exterior has been transformed with a new color palette, awnings and drought resistant landscaping.
vAlUe ADD OPPORtUnitY: 3209 Descanso Drive has 8 remaining unrenovated units allowing future increased rent potential as the remaining units turn over.An additional vacant +/- 2,250 SF flex-space exists on the main level with private entry which could provide for a potential new amenity or profit center.
Well lOCAteD: 3209 Descanso Drive is located within the heart of Silver Lake and just 75 feet from Sunset Blvd’s many shops and eateries. There are endless dining and shopping options within moments and a short drive puts you in Echo Park and/or DTLA.
gReAt WAlKABilitY: With an 89 Walk Score, 3209 Descanso Drive is a “Walker’s Paradise”– most errands do not require the use of a car.
eXCePtiOnAl FinAnCing / lOAn OPtiOns: Buyers can acquire the property with as little as 30%-35% down payment with historically low interest rates and attractive financing options.
stROng emPlOYment: Hollywood-Silver Lake submarket is one of the strongest employment centers in the Los Angeles metropolitan area and offers access to a diverse set of employers.
lACK OF hOUsing AFFORDABilitY: There is a significant affordability gap to home ownership in the Hollywood-Silver Lake submarket. As the median home price in the area is approximately $954k (median list price of $743/sf ), a typical monthly mortgage payment is between 2-3 times more than the average rents in the area.
tRAnsit ORienteD: 3209 Descanso Drive is located along Sunset Blvd.’s numerous bus line service and less than 1.3 miles away from the Vermont/Santa Monica Redline station for an easy commute to Hollywood or Downtown Los Angeles.
lOCAteD neAR neW COmmeRCiAl DevelOPments: More than 2.3 million square feet of commercial space is currently under development in the Hollywood-Silver Lake submarket representing more than $1.58 billion in project costs. It is estimated that nearly 6,500 new jobs will be created in Hollywood alone because of these new developments.
nO seismiC RetROFit ReQUiReD: The property is not on the list of buildings that require a seismic retrofit.
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EXTERIOR SPACES
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INTERIOR LIVING SPACES
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INTERIOR SPACES
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INTERIOR LIVING SPACES
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FLOORP L A N S
1STFLOOR
Information deemed reliable, but not guaranteed. User is advised to independently verify the accuracy of this information.
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2NDFLOOR
3RDFLOOR
Information deemed reliable, but not guaranteed. User is advised to independently verify the accuracy of this information.
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E X E C U T I V E S U M M A R Y
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FINANCIAL SUMMARY 3029 Descanso DriveLos Angeles, CA 90026
New Property Taxes $54,600Water, Power & Gas Utilities $7,072Waste Removal $3,078Property Insurance $5,053Registration Fees $864Repairs & Maintenance $3,200Pest Control & Landscape $1,450Onsite Management $4,800Offsite Management (3%) $8,213Total Estimated Expenses ‐$88,330
ESTIMATED ANNUALIZED EXPENSES
Offering Price $4,550,000Offering Price $4,775,001Current CAP Rate 4.0%Market CAP Rate 7.0%Current GRM 16.62Market GRM 11.01Cost Per SF $475Cost Per Unit $284,375
Cash on Cash Return 4.0%Expenses Per Unit $5,521Expenses Per Sq Ft $9.22
Units 16Lot Sq Ft 5,508Bldg Gross Sq Ft 9,583Parking Spaces Street
BUILDING DATA
FINANCIAL INDICATORS
# of Units Unit Type Avg. Rent Total Avg. Rent Income9 Single / 1 Bath $1,390 $12,508 $1,850 $16,6507 1 Bed / 1 Bath $1,444 $10,110 $2,300 $16,100
2,250 SF Flex Space ‐ Main Level $0 $1,500Total Rental Income $22,618 $34,250Laundry Income Estimate $195 $195Total Monthly Income $22,813 $34,445Total Annual Income $273,757 $413,340
EST. ANNUALIZED OPERATING DATAScheduled Gross Income $273,757 $413,340Less Vacancy 2.0% ($5,475) 2.0% ($8,267)Gross Operating Income $268,282 $405,073Less Expenses 32.9% ($88,330) 21.4% ($88,330)Net Operating Income $179,952 $316,743
CURRENT MARKET
CURRENT RENTSMARKET RENTS Post Renovation
SOURCE OF INCOME
Notations:
1) Repairs & Maintenance: Repairs and Maintenance is underwritten as a pro forma expense of $200 per unit, post aquisition of the property.
2) Contract Service: Pest Control, Landscaping and Waste Removal based upon 2017 figures.
3) Utilities: Based upon 2017 figures.
4) Management Fee: Projected at 3% of Total Annual Income
5) Real Estate Taxes: Based upon 1.2% of offering price.
6) Property Insurance: Based upon 2017 figures.
7) Onsite Resident Manager: Proforma expenseat $400 per month
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RENT ROLL 3029 Descanso DriveLos Angeles, CA 90026
UNIT STATUS UNIT TYPE
10 Occupied 1 Bed / 1 Bath Renovated $2,150 $2,30011 Occupied 1 Bed / 1 Bath $810 $2,30020 Occupied Single / 1 Bath Renovated $1,695 $1,85021 Occupied 1 Bed / 1 Bath $1,218 $2,30022 Occupied Single / 1 Bath $562 $1,85023 Occupied Single / 1 Bath Renovated $1,703 $1,85024 Occupied Single / 1 Bath Renovated $1,650 $1,85025 Occupied 1 Bed / 1 Bath $1,389 $2,30026 Occupied 1 Bed / 1 Bath $893 $2,30030 Occupied Single / 1 Bath Renovated $1,703 $1,85031 Occupied 1 Bed / 1 Bath Renovated $2,300 $2,30032 Occupied Single / 1 Bath Renovated $1,750 $1,85033 Occupied Single / 1 Bath $1,105 $1,85034 Occupied Single / 1 Bath Renovated $1,703 $1,85035 Occupied 1 Bed / 1 Bath $1,349 $2,30036 Occupied Single / 1 Bath $636 $1,850
$22,618 $32,750
CURRENT RENT MARKET RENT
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PROPERTY DETAILS
Property Address: Assessor’s Parcel Number: Buildings: Year Built: Land Use: Zoning: Stories:
SITE DESCRIPTIONUnits: Gross Square Footage: Lot Size Square Footage:
UTILITIESElectric: Gas:
CONSTRUCTIONFoundation: Framing: Exterior: Roof:
3209 Descanso Drive, Los Angeles, CA 900265426-007-001
One1928
ApartmentsLAR3
Three
16± 9,583 ± 5,508
Separately Metered - LADWPSeparately Metered - LADWP
Concrete/Raised FoundationWood Frame
StuccoPitched/Flat
These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Keller Williams Realty/KW Commercial or its personnel, and all interested parties must independently verify its accuracy and completeness.
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LO C AT I O N
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3209DESCANSO DRIVE
LOS ANGELES, CA 90026
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Silver LakeSUNSET JUNCTION....3209 Descanso Drive is located blocks away from the core of three of the most enticing neighborhoods in Los Angeles County- Hollywood, Silver Lake, and Los Feliz. Due to its eclectic location and walkability, residents enjoy unparalleled access to a wide variety of employment, entertainment, and cultural experienc-es that few other neighborhoods in Los Angeles can match.
As part of its recent restoration, Hollywood continues to set the bar in terms of being a major employment center and highly sought after location for a young-er more hip clientele that is looking for a true urban experience. Moreover, with the merging of old Holly-wood and today’s tech savvy startups, the area is ripe for continued success in enticing a younger renter demographic.
Following this uprising of trendy and eclectic resi-dents is a diverse base of restaurants, bars, nightclubs, and retail shops that bring a wide range of cultural experiences to the area. Within the existing location, residents have the opportunity to walk to nearby restaurants and cafes, take the metro into the heart of Hollywood, or spend the afternoon in an adjacent neighborhood via short commute.
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Located a 10-15 minute walk north of the subject property along Vermont and Hillhurst Avenues, Los Feliz Village features a wide array of local restaurants, boutique shops, artsy coffee shops, theaters, gastrobus, and parks. Notable establishments include The Dresden Room, which was prominently featured in the movie Swingers; Fred 62, a retro 1960’s California 24-hour diner, and Alcove Cafe & Bakery, a converted bungalow which has become one of the most reviewed and most popu-lar brunch destinations in Los Angeles. Locals enjoy Barnsdall Art Park which plays host to Los Feliz farmer’s market and local theater at Los Feliz Five Star Theaters know for its signature marquee signage. The Rockwell: Table & Stage, another local favorite, it offers live music performances combined with sea-sonal cuisine and cocktails.
World Famous due to its arts and entertainment industry. Hollywood is a densely populated and vibrant part of Los Angeles. With recent uprising, the area offers over 75 restau-rants, world famous nightclubs, and music venues, and count-less jobs in the entertainment and gaming industries.
LOS FELIZ...
Hollywood...
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L A K Es i l v e r
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MA R K E TC O M PA R A B L E S
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RENT COMPARABLES
1)
2)
3)
4)
5)
6)
1559 Echo Park Avenue
1036 Sanborn Avenue
1026 Sanborn Avenue
731 North Dillon Street
1753 Silver Lake Blvd.
1736 Griffith Park Blvd.
3209 Descanso Drive
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RENT COMPARABLESSINGLE
Property UnitsYearBuilt Owner / Manager
3209 Descanso DriveLos Angeles, CA 90026
1
2
3
4
5
6
7
16
22
16
14
4
4
6
1928
1928
1928
1928
1924
1950
1924
Rent SF Rent/SF
1559 Echo Park AvenueLos Angeles, CA 90026
1036 Sanborn Avenue Los Angeles, CA 90029
1026 Sanborn AvenueLos Angeles, CA 90029
731 North Dillon StreetLos Angeles, CA 90026
1753 Silver Lake Blvd. Los Angeles, CA 90026
$1,800
$1,890
$1,960
$1,900
-
-
-
-
526
408
408
-
-
-
-
$3.59
$4.80
$4.65
-
-
-
Private Owner Owner Managed
AVERAGE:
Private Owner Owner Managed
Private Owner Owner Managed
Private Owner Owner Managed
Private Owner Owner Managed
Private OwnerOwner Managed
HIGH: LOW:
$1,916.$1,960$1890
447
526408
Private Owner Owner Managed
1736 Griffith Park BoulevardLos Angeles, CA 90026
$2,748
$2,995$2,300
766
900650
$3.60$3.99$3.28
$2,300
-
-
-
$2,950
$2,300
$2,995
-
-
-
-
$3.28
$3.54
$3.99
Rent SF Rent/SF
ONE BEDROOM
$4.34
$4.80$3.59
-
-
-
-
900
650
750
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1)
2)
3)
4)
5)
6)
3209 Descanso Drive
SALECOMPARABLES
827 Merwin Street
1042 Sanborn Avenue
4509 Willow Brook Avenue
1616-1630 Talmadge Street
941-943 North Vendome Street
6500 Yucca Street
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SALECOMPARABLES
SALE COMPARABLES
PROPERTY BUILT UNITS BLDG.SF PRICE CAP GRM $/UNIT $/SF CLOSED STUDIO 1BDR 2BDR
1
2
3
827 Merwin StreetLos Angeles, CA 90026
1042 Sanborn AvenueLos Angeles, CA 90029
1929
1913
8
24
7,400
14,520
$2,900,000
$6,950,000
4.83%
4.23%
13.67
14.90
$362,500
$289,583
$391.89
$478.65
10/3/2016
2/23/2018
8(2+1)
5(2+1)8(1+1)11(0+1)
4509 Willow Brook Avenue
Los Angeles, CA 90029
3
4
1616-1630 Talmadge StreetLos Angeles, CA 90027
1923
1921
14
8
8,820
7,000
$4,000,000
$2,665,000
4.6%
3.50%
-
16.63
$285,000
$333,125
$454
$380.71
PENDING
10/7/2016
15(1+1)
8(1+1)
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SALE COMPARABLES
PROPERTY BUILT UNITS BLDG.SF PRICE CAP GRM $/UNIT $/SF CLOSED STUDIO 1BDR 2BDR
941-943 North Vendome StreetLos Angeles, CA 90026
5
6
6500 Yucca StreetLos Angeles, CA 90028
1931
1928
8
100
7,184
94,435
$3,150,000
$32,315,000
4.41%
-
-
-
$393,750
$323,150
$438.47
$342.19
12/6/2017
12/13/2017 33(1+1)34(0+1) 33(2+1)
POPULATION 0.5 MILES 1 MILE 1.5 MILES
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D E M O G R A P H I C SS N A P S H O T
18,6222.0$86,604$744,616
24,7502.4$70,571$677,885
143,7932.5$61,330$647,692
S I L V E R L A K E
TOTAL POPULATIONMEDIAN AGEMEDIAN AGE (MALE)MEDIAN AGE (FEMALE)
POPULATION 0.5 MILES 1 MILE 1.5 MILES 20,51033.232.334.5
63,51534.433.835.2
155,22434.934.235.9
TOTAL HOUSEHOLDS# OF PERSONS PER HHAVERAGE HH INCOMEAVERAGE HH HOUSE VALUE
7,8242.6$49,012$538,547
24,7502.6$55,634$666,991
59,4112.6$57,375$667,160
L O S F E L I Z
TOTAL POPULATIONMEDIAN AGEMEDIAN AGE (MALE)MEDIAN AGE (FEMALE)
37,62538.738.138.9
62,74637.136.338.0
363,18735.434.636.4
HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES TOTAL HOUSEHOLDS# OF PERSONS PER HHAVERAGE HH INCOMEAVERAGE HH HOUSE VALUE
HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES
POPULATION 0.5 MILES 1 MILE 1.5 MILES
POPULATION 0.5 MILES 1 MILE 1.5 MILES
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Exclusively Listed By:
Rich JohnsMultifamily Investment [email protected]
CalBRE Lic. #01432215
David WeinbergerMultifamily Investment [email protected]
CalBRE Lic. #01349349
Adam ZunderMultifamily Investment [email protected]
CalBRE Lic. #01821053
