372LoMA DRive | Los angeles, CA 90017
23-Unit Stabilized Investment Opportunity in the Westlake Neighborhood of Los AngelesFeatures 21 Two-Bedroom Townhouse and Two One-Bedrooms; 5.16% CAP Rate and 12.50 GRM on Current Income
CONFIDENTIALITY AND DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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 substi-tute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or represen-tation, with respect 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provid-
ed. All potential buyers must take appropriate measures to verify all of the information set forth herein.
NON-ENDORSEMENT NOTICEMarcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commer-cial 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to
prospective customers.Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing pack-age. 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus
& Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
EXCLUSIVELY LISTED By
NEEMA AHADIAN Senior Vice President Investments
Tel: (310) 909-5444 Fax: (435) 915-3662
[email protected] License: CA 01346750
LEO LATERZA Senior Investment Associate
Tel: (310) 909-2372 Fax: (435) 915-3662
[email protected]: CA 01861324
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Executive Summary
PROPERTY DESCRIPTION
FINANCIAL Analysis
MARKET COMPARABLES05
Area Overview
EXECUTIVE SUMMARY
372 LOMA DRIVEL o s A n g e l e s , C A 9 0 0 1 7
The Neema Group of Marcus & Millichap is pleased to present 372 Loma Drive, in Los Angeles, CA 90017. Built in 1924 and renovated in 2018, this 23-unit property totals 23,987 SF located in Westlake just west of MacArthur Park. This is a unique opportunity to purchase a building that features 21 two-bedroom townhouse units and two one-bedrooms. The townhouse units are
over 1,000 SF and all have dual entrances.
This offering presents an investor the opportunity to purchase a highly efficient building with stable cash flow and significant rental upside to achieve when units turn. At the asking price, the CAP rate is an attractive 5.16% and 12.50 GRM on current income. Separately metered gas and
electric, individual water heaters and RUBS program allow for low utilities.
The Westlake neighborhood continues to be one of the most densely populated neighborhoods in all of Los Angeles. With a walk score of 89, proximity to schools and employment and endless transit options, this location makes it convenient for residents to commute throughout the city
even without a vehicle.
PROPERTY Overview
FINANCIAL Overview
$256,522
12.50
9.42
Cost per Unit
Current GRM
Market GRM
Current CAP Rate
Pro Forma Cap Rate
5.16%
OFFERING PRICE $5,900,000
23
LAR4
1924
23,987 SF
20,621 SF
Number of Units
Zoning
Year Built
Gross Square Feet
Lot Size
Ownership Fee Simple
7.38%
Investment Highlights◊ 372 Loma Drive is a 23-unit stabilized investment opportunitywith upside in the heart of Westlake, located just south of West 3rdStreet between Union Avenue & Witmer Street; a location adjacentto Downtown Los Angeles that is surrounded by new developments,employment and education opportunities that contribute tosignificant rent growth year-over-year in this highly gentrifyingneighborhood
◊ Opportunity to acquire an asset with strong in-place cash flowat a CAP rate of 5.16% and 12.50 GRM on current income with true rental upside as the loss-to-lease is over 24%
◊ The subject property, built in 1924 and renovated in 2018,features 21 two-bedroom townhouse units along with two one-bedroom units; the townhouse units are spacious at 1,050 SF each with dual entrances, a rare unit layout to find in this neighborhood
◊ 372 Loma Drive is an efficiently run building with low utilitiesas well as a RUBS program in place; gas and electricity are both separately metered along with individual water heaters in each unit
◊ High walk score of 89 with close proximity to the 110, 101 and 10Freeways as well as walking distance to the Metro Purple Line andMetro Redline at the Westlake/Macarthur Park Station stop providing tenants endless transportation options throughout Los Angeles
◊ 372 Loma Drive is located just 0.8 miles from major Downtownattractions such as LA Live and the Staples Center
◊ Westlake is the second-most dense neighborhood in LosAngeles County, according to the Los Angeles Times; its rental market continues to thrive as it is in the center of high-growth neighborhoods such as Pico-Union, Koreatown, Echo Park and Downtown Los Angeles
Property DESCRIPTION
372 LOMA DRIVE, LOS ANGELES, CA 90017APN 5153-019-011Number of Units 23Year Built 1924Gross SF 23,987Lot Size 20,621Type of Ownership Fee Simple
CONSTRUCTIONFoundation ConcreteFraming WoodExterior StuccoRoof Flat
UTILITIESElectricity Separately MeteredWater Master MeteredGas Separately Metered
23 UNITS
3 72L o m a D R I V E
WestlakeWestlake, located right outside Downtown’s employment hub, is a bustling neighborhood with a young professional demographic. Westlake is adjacent to other notable neighborhoods, including Echo Park, Pico Union, Downtown and Koreatown. The neighborhood is extremely dense, with endless streets lined with small businesses. MacArthur Park, designated as the City of Los Angeles Cultural Monument #100, is located in Westlake and is adjacent to the Metro’s Westlake/MacArthur Park
Station, which affords access to the Red and Purple lines. Those lines provide public transportation toward Downtown, North Hollywood and toward Koreatown, with West Side extensions projected to be completed in 2027. Westlake has recently seen a flurry of development and public safety initiatives, from mixed-use projects to new crosswalks. M2A Architects was contracted to construct a mixeduse project at the intersection of Olympic and Hoover that will feature 173 dwelling units, nearly 37,000 square feet of
ground-floor commercial space and parking for 262 vehicles. Amidi Group, a San Francisco-based developer, is 50% complete with their $180 million 1027 Wilshire development. The project will span nine stories and feature 376 residential units, approximately 5,000 square feet of ground-floor retail space, and subterranean parking for more than 800 vehicles.
Bridging the Gap Between Downtown Los Angeles and Koreatown
As Koreatown and Downtown Los Angeles continue to experience tremendous growth that is attracting millions of square feet of new developments, the Westlake submarket is benefitting from the spillover. With luxury upscale communities in Koreatown and Downtown Los Angeles continuing to attract a more affluent tenant profile introducing hundreds of millions of dollars in discretionary income into the submarkets, local businesses are thriving and new social amenities are being drawn to the area further enhancing the region’s appeal.
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Westlake DEVELOPMENT MAP
PLAYHOUSE THEATRE | 1234 WEST 7TH STREETOwners of New York's famous Bowery Ballroom announced plans to rehabilitate the Playhouse
VALENCIA | 1501 WILSHIRE BOULEVARD$60-million mixed-use complex with 218 apartments and 4,400 SF of groundfloor retail
WILSHIRE CORONADO | 636 SOUTH CORONADO STREETSeven-stories housing 154 luxury units designed by Rios Clementi Hale and DeStefano Partners
HAYWORTH THEATRE | 2511 WILSHIRE BOULEVARDCreative office space designed for Jenji Kohan, creator of Weeds and Orange is the New Black
BIXEL/LUCAS | 611 SOUTH BIXEL STREETAdaptive reuse and new construction with 648 units and up to 40,000 SF of groundfloor commercial space
FERRANTE | 1000 W TEMPLE STREETMultiple seven-story buildings featuring 1,500 apartments, 30,000 square feet of retail space and parking for over 2,600 vehicles
1100 W TEMPLE STREET | 1100 W TEMPLE STREETProposed development of 53 apartments and 64 parking spaces
1363 W COLTON STREET | 1363 W COLTON STREETEntitled for construction of 47 apartments on seven stories and 25 parking spaces
678 SOUTH ALVARADO | 678 SOUTH ALVARADO STREETFive-story building housing 81 low-income apartments and 17,000 SF of street level retail over the Westlake/MacArthur Park Station
THIRD AND WITMER | 1435 WEST 3RD STREETFive story mixed-use structure with 122 apartments 1324 WEST WILSHIRE | 1324 WEST WILSHIRE BOULEVARDSix-story, 52-unit building with 5,281 SF of street-level retail
1419 WEST SEVENTH | 1419 WEST 7TH STREET87 units with a gym, recreation room and third-floor deck with 135 parking spaces
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23 UNITS
3 72L o m a D R I V E
ENTERTAINMENT:The Los Angeles Theatre Center
Regent TheatreWalt Disney Concert Hall
The Broad Museum
NIGHT LIFE:Perch
Seven GrandLibrary Bar
RESTAURANTS/FOOD:Plan Check Kitchen
Grand Central MarketTender Greens
Philz CoffeeWhole Foods Market
Bottega LouieTerroni
OTHER:MacArthur Park
Loyola Law SchoolThe Home Depot
The Mayfair HotelLos Angeles Central Library
Equinox Downtown LARite Aid
Los Angeles City Hall
Amenities 3 72L o m a D R I V E
FINANCIAL ANALYSIS
UNIT # UNIT TYPE ACTUAL RENTS PROFORMA RENTS1 372 2+1 Twnhs $1,202 $2,295
2 372 1/2 2+1 Twnhs $2,195 $2,295
3 372 1/4 2+1 Twnhs $1,173 $2,295
4 372 3/4 2+1 Twnhs $849 $2,295
5 372 6/8 2+1 Twnhs $1,148 $2,295
6 374 2+1 Twnhs $2,095 $2,295
7 374 1/2 2+1 Twnhs $2,095 $2,295
8 374 1/4 2+1 Twnhs $2,095 $2,295
9 374 3/4 2+1 Twnhs $2,095 $2,295
10 374 6/8 2+1 Twnhs $1,259 $2,295
11 374 7/8 1+1 $1,685* $1,685
12 376 1+1 $1,595 $1,685
13 376 1/2 2+1 Twnhs $2,095 $2,295
14 376 1/4 2+1 Twnhs $2,245 $2,295
15 376 3/4 2+1 Twnhs $1,705 $2,295
16 376 6/8 2+1 Twnhs $1,338 $2,295
17 376 7/8 2+1 Twnhs $908 $2,295
18 378 2+1 Twnhs $2,145 $2,295
19 378 1/2 2+1 Twnhs $2,195 $2,295
20 378 1/4 2+1 Twnhs $2,095 $2,295
21 378 3/4 2+1 Twnhs $1,209 $2,295
22 378 6/8 2+1 Twnhs $2,095 $2,295
23 378 7/8 2+1 Twnhs $1,158 $2,295
Total Scheduled Rent $38,674 $51,565
Additional Income - Laundry $225 $225
RUBS $420 $420
Monthly Scheduled Gross Income $39,319 $52,210
RENT ROLL
*On-Site Manager’s Unit
OPERATING EXPENSES CURRENT MARKETReal Estate Taxes (1.20%)
Insurance
Utilities
Direct Assessments
Maintenance
Waste Removal
Pest Control
Management
On-Site Manager
Licenses & Fees
Total Expenses
Per Net Sq. Ft.
Per Unit
INCOME CURRENT MARKET Scheduled Gross Income
Less Vacancy Rate Reserve
Gross Operating Income
Less Expenses
Net Operating Income
Less Debt Service
Reserves
Pre-Tax Cash Flow
Plus Principal Reduction
Total Return Before Taxes
Annualized Operating Data
$471,828 $626,520
3.0% $14,155 5.0% $31,326
$457,673 $595,194
32.5% $153,359 25.5% $159,527
$304,314 $435,667
$232,341 $232,341
$4,600 $4,600
4.1% $71,973 11.5% $203,326
$75,503 $75,503
8.3% $147,476 15.8% $278,828
$69,030 $68,445
$8,395 $8,395
$15,559 $15,559
$1,743 $1,743
$16,100 $16,100
$5,520 $5,520
$1,020 $1,020
$23,591 $29,760
$10,200 $10,200
$2,200 $2,200
$153,359 $158,942
$6.39 $6.63 $6,668 $6,936
Pricing Details
Price
Number of Units
Cost per Legal Unit
Current GRM
Market GRM
Current CAP
Market CAP
Approx. Age
Approx. Lot Size
Approx. Gross SF
Cost per Net GSF
New First Loan
Interest Rate
Amortization
Monthly Payment
DCR
NEW POTENTIAL FINANCING
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$256,522
12.50
9.34
5.16%
7.38%
1924
20,621
23,987
$246
$4,130,000
3.85%
30
$19,361.78
1.31
$5,900,000
MARKET COMPARABLES
Sales Comparables | 372 Loma Avenue
Price Year Built PRICE/UNIT PRICE/SF CLOSING DATE
372 Loma Dr | Los Angeles , CA 90017 -
1 1300 Douglas St | Los Angeles , CA 90026
2 933 Elden Ave | Los Angeles , CA 90006
3 4221 Burns Ave | Los Angeles , CA 90029
4 1852-1862 N Edgemont St | Los Angeles , CA 90027
5 3365-3373 3/4 Hami l ton Way | Los Angeles , CA 90026
6 205 S Reno St | Los Angeles , CA 90057
7 721 Si lver Lake Blvd | Los Angeles , CA 90026
$5,900,000 1924 $256,522 $246
$2,313,000 1924 $289,125 $354 8/29/2019
$2,500,000 1923 $227,273 $248 4/19/2019
$7,600,000 1928 $271,429 $501 5/21/2019
$3,015,000 1937 $251,250 $219 5/10/2019
$3,800,000 1928 $253,333 $374 10/29/2019
$2,328,500 1922 $232,850 $331 3/11/2019
$2,600,000 1949 $260,000 $422 11/1/2019
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UNITS
3 72L o m a D R I V E
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1 1300 Douglas StreetLos Angeles , CA 90026
Sales Price
Sale Date
Number of Units
Year Built
Price per Unit
Price per SF
372 Loma DRIVELos Angeles , CA 90017
Offering Price
Number of Units
Year BuiltPrice per UnitPrice per SFCAP RateGRM
Sales Price
Sale Date
Number of Units
Year Built
Price per Unit
Price per SF
Sales Comparables | 372 Loma Dr ive
2 933 Elden AveNueLos Angeles , CA 90006
$2,313,000
8/29/2019
8
1924
$289,125
$354
$5,900,000
23
1924
$256,522
$246
5.16%
12.50
$2,500,000
4/19/2019
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1923
$227,273
$248
Sales Price
Sale Date
Number of Units
Year Built
Price per Unit
Price per SF
Sales Price
Sale Date
Number of Units
Year Built
Price per Unit
Price per SF
Sales Price
Sale Date
Number of Units
Year Built
Price per Unit
Price per SF
Sales Comparables | 372 Loma Dr ive
3 4221 Burns AvenueLos Angeles , CA 90029 4 1852-1862 N Edgemont StReet
Los Angeles , CA 90027 5 3365-3373 3/4 Hamilton WayLos Angeles , CA 90026
$7,600,000
5/21/2019
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1928
$271,429
$501
$3,015,000
5/10/2019
12
1937
$251,250
$219
$3,800,000
10/29/2019
15
1928
$253,333
$374
7 721 Silver Lake BOULEVARDLos Angeles , CA 90026
Sales Price
Sale Date
Number of Units
Year Built
Price per Unit
Price per SF
205 S Reno StreetLos Angeles , CA 90057
Sales Price
Sale Date
Number of Units
Year Built
Price per Unit
Price per SF
Sales Comparables | 372 Loma Dr ive
6
$2,600,000
11/1/2019
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1949
$260,000
$422
$2,328,500
3/11/2019
10
1922
$232,850
$331
1437Harvard Street
EXCLUSIVELY LISTED By NEEMA AHADIAN Senior Vice President Investments Tel: (310) 909-5444 Fax: (435) 915-3662 [email protected] License: CA 01346750
372 LOMA DRIVE
LEO LATERZA Senior Investment AssociateTel: (310) 909-2372 Fax: (435) 915-3662 [email protected]: CA 01861324
