26
Multifamily Value-Add Opportunity 1031 OCEAN PARK BLVD | SANTA MONICA, CA 90405 THE KITTY WALLACE TEAM
Multifamily Value-Add Opportunity1031 OCEAN PARK BLVD | SANTA MONICA, CA 90405
THE KITTY WALLACE TEAM
CONTENTS
SUMMARY 4-5
PROPERTY 6-9
MARKET 10-17
FINANCIALS 18-23
DISCLAIMER 24-25
Kitty WallaceExecutive Vice President
+ 1 310 622 [email protected]
License No. 01218779
EXCLUSIVELY LISTED BY:
INVESTMENT SUMMARYVALUE-ADD MULTIFAMILY INVESTMENT OPPORTUNITY > Well-maintained 4-unit apartment building in Santa Monica with
29.2% upside potential > While 3 units were upgraded with modern fixtures and finishings
between 2013-2015, there is opportunity to add further value with strategic second-level renovations
IDEAL WESTSIDE LOCATION > Favorably located in Santa Monica, one of the most sought-after
rental markets in Los Angeles > Property is a short walk to assigned K-12 schools, Santa Monica
College, four parks and countless restaurants and shops lining Ocean Park Boulevard, Lincoln Boulevard and Main Street
> Santa Monica Beach, 3rd Street Promenade, Santa Monica Pier, Abbot Kinney, Rose Avenue, Google Campus, Snapchat and Downtown Santa Monica Metro Expo Line Station are all within 1.5 miles
> Convenient proximity to the major employments centers of Santa Monica, Venice, Culver City, Century City, Beverly Hills and Downtown
STRONG MULTIFAMILY FUNDAMENTALS > Santa Monica asking rents grew by an average of 4.4% in Q3 2017,
the highest growth rate in the metro > Rents are expected to continue their upward climb with an annualized
5-year forecast of 4.6% > Submarket occupancy has averaged 96.8% for the past 5 years and is
forecasted to maintain a rate of 96.3% over the next 5 > Within a 5-mile radius, the population grew 5.07% to 496,557
between 2010-2018 and is projected to increase further by 3.38% over the next 5 years
> Average household income within a 5-mile radius is $135,908 > Employment population is 277,912 within a 5-mile radius
4
5
6
PRICING | $2,550,000
ADDRESS | 1031 Ocean Park Boulevard Santa Monica, CA 90405
APN | 4284-009-004
LAND AREA | 6,589 SF / 0.15 AC
BUILDING AREA | 3,334 SF
# OF UNITS | 4
PROPERTY OVERVIEW
> Well-maintained fourplex in desirable Santa Monica with the potential for 29.2% in rental upside
> Interiors were remodeled between 2013-2015 with refinished hardwood floors, high-efficiency washers and dryers, granite countertops, white cabinetry, modern backsplashes, built-in bar counters and sleek stainless steel appliances
> Units are configured in spacious two-bedroom, one-bath layouts spanning 850 SF
> Building offers dedicated 4-car garage parking, a back patio area and in-unit laundry (in 3 remodeled units)
> Exterior painting and landscaping improvement project completed in 2018 to enhance the property’s facade
> Opportunity to add further value with rehab of the remaining original unit and strategic second-level renovations to improved units and common areas
> Spacious units are ideal for a possible owner/user
BUILDINGS | 1
STORIES | 2
PARKING | 4 spaces
OCCUPANCY | 100%
YEAR BUILT | 1947
ZONING | SMR3*
7
LOCATION1031 Ocean Park Boulevard is situated in famed Santa Monica, a seaside city hugging the Pacific Coast roughly 15 miles west of Downtown Los Angeles. Settled in between 10th and 11th streets, the property is situated within the Ocean Park neighborhood—the city’s southeastern most enclave that links directly to the beach. Its eclectic, funky, happening namesake boulevard is known as an up-and-coming destination for talked-about restaurants and “where’d you get that” shops. Accentuated by spacious Clover Park, the neighborhood is also home to the Santa Monica Airport and its dynamic aviation museum, the Museum of Flying.
> Walking distance to Whole Foods, Gelson’s, Thyme Cafe, Local Kitchen, Main Street, four parks, assigned K-12 schools and Santa Monica College (34,000+ students and 1,800+ staff)
> Within 1.5 miles of the beach, 3rd Street Promenade, Santa Monica Pier, Abbot Kinney, Rose Avenue, Google, Snapchat and the Metro Expo Line—Los Angeles County’s second busiest rail service
MAPLE ST
OCEAN PARK BLVD
10TH
ST
11TH
ST
8
Main St
Ocea
n Pa
rk B
lvd
Lincoln Blvd
11th St
9
MARKET OVERVIEWCliffs cascade into the coast in Santa Monica, an autonomous West Los Angeles locale defined by its easy-going atmosphere with big city sophistication. A quintessential California beach town, Santa Monica’s blend of surf, sand and sun beckons Angelenos and outsiders to bask in its miles-long stretch of oceanfront and promenade its shopping plazas, boardwalk and chic boutique-filled corridors.
The City encompasses a walkable 8.3 square miles and is home to eight neighborhoods, each with their own distinct personality, that offer a diverse mix of shopping, dining, entertainment and outdoor recreation. Its most vibrant pockets—Downtown, Montana Avenue and Main Street—maintain Santa Monica’s effervescent energy with oceanside amusement at any hour, while weekly farmers’ markets and summer pier concerts contribute to its local charm. The living situation ranges from multi-unit apartment complexes to multi-million dollar mansions by the sea in Santa Monica, where bungalows and bold geometric designs can be found side by side on palm tree-lined avenues.
Population of 496,557 (5-mile) is projected to increase 3.38% over
the next 5 years
Employee base of 277,912 within a
5-mile radius
Santa Monica rent growth was 4.4% in Q3 2017, the
highest in the metro
Average household income within a 5-mile
radius is $135,908
$
Santa Monica home values have
gone up 9.0% over the past year
10
SANTA MONICA HOME VALUE INDEX
Source: Zillow & Colliers International Research
2008 2010 2012 2014 2016 2018 2020
$1,700,000
$500,000
$1,500,000
$1,300,000
$1,110,000
$900,000
$700,000
SANTA MONICA AVERAGE RENT & OCCUPANCY
Source: REIS
97.5%
97.0%
96.5%
96.0%
95.5%
95.0%
$3,500
$3,000
$2,500
$2,000
Asking Rent Occupancy
2012 2013 20152014 2016 2018 20202017 2019 2021
11
1-mile 3-mile 5-mile
Population
2018 Estimate 37,574 235,213 496,557
2023 Projection 38,748 242,986 513,336
Growth 2018 - 2023 3.13% 3.31% 3.38%
Population by Age
0 - 17 13.50% 14.17% 14.85%
18 - 34 22.12% 23.43% 27.04%
35 - 54 34.96% 33.51% 30.03%
55 - 74 23.17% 21.82% 20.82%
75 - 85+ 6.26% 7.09% 7.25%
Employment Population*
Civilian - Employed 22,096 139,833 277,912
Households by Income*
$25,000 - $49,999 14.68% 14.46% 14.42%
$50,000 - $74,999 12.94% 13.23% 13.30%
$75,000 - $99,999 10.05% 11.52% 11.15%
$100,000 - $124,999 9.71% 10.10% 9.66%
$125,000 - $149,999 8.11% 8.20% 7.72%
$150,000 - $200,000+ 26.8% 27.69% 28.56%
Avg. Household Income* $124,815 $130,446 $135,908
Median Household Income* $86,086 $90,898 $90,428
DEMOGRAPHICS
*2018 Estimate | Source: Claritas
Santa Monica is designated within the Santa Monica-Malibu Unified School District, which serves 11,000 students across 11 elementary schools, 4 middle schools and 3 high schools. Several private, magnet and charter options are also available. The K-12 schools specifically assigned to 1031 Ocean Park Boulevard are all located within 0.6 miles:
> John Muir Elementary School (6/10 GreatSchools rating) > John Adams Middle School (7/10 GreatSchools rating) > Santa Monica High School (9/10 GreatSchools rating)
The city is also home to Santa Monica College—an accredited two-year community college with approximately 34,000 students and offerings in more than 100 fields of study. The college boasts an impressive academic record, priding itself as the leader among California’s 112 community colleges in transferring students to USC, the UC system and other 4-year campuses.
EDUCATION
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Santa Monica has one of the most extensive transit networks among cities of its size, priding itself on being accessible and well-connected to public transportation that makes it easy to go car free.
The City’s local bus service, Big Blue Bus, serves upwards of 20 million passengers per year and is an integral part of daily life in Santa Monica. More than 17% of residents ride the Big Blue Bus at least a few times a week.
Metro operates the Expo Line Light Rail as well as several Local and Rapid Busway routes that run through Santa Monica. The highly-anticipated Expo Line Extension to Santa Monica opened in May 2016, now connecting the City by rail to Downtown Los Angeles, Pasadena, San Fernando Valley, South Bay, Long Beach and dozens of points in between. The extension has proved a success as ridership continues to surpass predictions while climbing steadily since its debut. So far in 2017, the Expo has averaged more than 1.5 million passengers per month, making it the second busiest Metro rail service.
Breeze, Santa Monica’s public bike-share program, was the first of its kind to launch in Los Angeles County, supplying 500 bikes and 80 rental stations that offer riders a quick and convenient way to get around Santa Monica.
1031 Ocean Park Boulevard is conveniently accessible to public transit with the Downtown Santa Monica Expo Station located just 1.4 miles away and numerous bus stops lining Ocean Park and Lincoln boulevards. A Breeze hub with multiple available bikes is also positioned around the corner on Lincoln.
> Walk Score of 78/100 (Very Walkable) > Bike Score of 86/100 (Very Bikeable)
TRANSPORTATION
Los
Ange
les
Rive
r
Los Angeles River
PACIFIC OCEAN
CRENSHAW/
PURPLE LINE EXTENSION
REGIONAL CONNECTOR
LAX LINE
LAX
Universal C
ity/Studio City
Hollywood/V
ine
Hollywood/H
ighland
Universal C
ity/Studio City
Civic Ctr/
Civic Ctr/
Civic Ctr/
Civic Ctr/
GrandGrandGrandGrand
ParkParkParkPark
Westlake/M
acArthur P
ark
Warner Ctr
Roscoe
Pico/Alis
o
Mariach
i Plaza
Long Beach Bl
Artesia
Del Amo
Civic Ctr/
GrandPark
Allen
LakeSierra
Madre Villa
Arcadia
Monrovia
Duarte/City
of Hope
Irwindale
Azusa Downtown
APU/Citrus Colle
ge
Lincoln/Cypress
Heritage Sq
Southwest Museum
Highland Park
Fillmore
Del Mar
Memorial Park
South Pasadena
Westlake/M
acArthur P
ark
Wilshire
/Vermont
Pershing
Chinatown
Union Station
Chinatown
Square
7th St/Metro CtrPico
LATTC/OrthoInstitute
Jefferson/U
SC
LAX FlyAwayAmtrak & MetrolinkLAX FlyAway
LAX FlyAwayLAX FlyAway
LAX FlyAway
LAX FlyAway
LAX FlyAway
LAX FlyAway
LAX Shuttle G
Amtrak & MetrolinkMetro
link
Sherman Way
Warner Ctr
Roscoe
Nordhoff
Chatsworth
Hollywood/W
estern
Vermont/S
anta MonicaHolly
wood/Western
Hollywood/V
ine
Hollywood/H
ighlandNorth
Hollywood
Balboa
Balboa
Woodley
Sepulveda
Sepulveda
Van Nuys
Van Nuys
Woodman
Valley Colle
ge
Laurel Canyo
n
Canoga
Canoga
De Soto
De Soto
Pierce Colle
ge
Pierce Colle
ge
Tampa
Tampa
Reseda
Reseda
Vermont/B
everly
Vermont/S
anta Monica
Vermont/S
unset
Vermont/S
unset
Amtrak & Metrolink
Soto
Indiana
Maravilla
East LA Civic C
tr
Atlantic
El Monte
Cal State LA
LAC+USC Medica
l Ctr
Pico/Alis
o
Mariach
i Plaza
Wilshire
/
Normandie
Wilshire
/Western
ExpoPark
/USC
Expo/Vermont
Expo/Western
Expo/Crenshaw
Farmdale
Expo/La Brea
La Cienega/Jefferson
Culver C
ity
Palms
Westwood/R
ancho Park
Expo/Sepulveda
Expo/Bundy
26th St/Bergamot
Expo/Sepulveda
Expo/Bundy
26th St/Bergamot
17th St/S
MC
Downtown Santa Monica
Mariposa
El Segundo
Douglas
Redondo Beach
37th St/USC
Rosecrans
Harbor
Carson
Pacific CoastHwy
GatewayTransit Ctr
Long Beach Bl
AvalonVerm
ont/
AthensCrenshaw
Hawthorne/Lennox
Aviation/L
AX
Lakewood Bl
Norwalk
Norwalk
Slauson
Manchester
Harbor F
wy
5th St
1st St
PacificAv
DowntownLong Beach
PacificAv
Washington
Vernon
Slauson
Florence
Firestone
Compton
Artesia
Del Amo
Wardlow
Willow St
Pacific Coast Hwy
Anaheim St
103rd St/
Willowbrook/Rosa Parks
Watts Towers 103rd St/
Willowbrook/Rosa Parks
DowntownLong Beach
Grand/LATTC
San Pedro St
Watts Towers
Union Station
Little To
kyo/
Little To
kyo/
Arts Dist
SAN FERNANDO VALLEY
SAN GABRIEL VALLEY
EASTSIDE
SOUTH BAY
San Pedro
GATEWAY CITIES
DOWNTOWNLA
SOUTH LA
CENTRAL LA
SAN FERNANDO VALLEY
SAN GABRIEL VALLEY
EASTSIDE
SOUTH BAY
San Pedro
GATEWAY CITIES
DOWNTOWNLA
SANTAMONICA
SOUTH LA
CENTRAL LA
WESTSIDE
metro.netMetro Rail & Busway
North Hollywood to Union Station
Metro Rail
Wilshire/Western to Union StationPurple Line
Blue Line
Expo Line
Orange Line
Amtrak
LAX FlyAway
Metrolink
Metro Busway
Regional Rail
Green Line
Gold Line
Downtown LA to Long Beach
Downtown LA to Santa Monica
Redondo Beach to Norwalk
East Los Angeles to Azusa
Silver Line Chatsworth to North Hollywood
San Pedro to El Monte
amtrak.com
metrolinktrains.com
lawa.org/flyaway
LAX Shuttle (free)lawa.org
Street Service in Downtown LAand San Pedro
MAY 2016 Subject to Change
Airport Shuttle
Rail Station
StationTransfer
Busway
Station
UNDERCONSTRUCTION
Busway StreetService
Red Line
17-2
413M
M ©
2017
LAC
MTA
APR 2017 Subject to Change
Los
Ange
les
Rive
r
Los Angeles River
PACIFIC OCEAN
CRENSHAW/
PURPLE LINE EXTENSION
REGIONAL CONNECTOR
LAX LINE
LAX
Universal C
ity/Studio City
Hollywood/V
ine
Hollywood/H
ighland
Universal C
ity/Studio City
Civic Ctr/
Civic Ctr/
Civic Ctr/
Civic Ctr/
GrandGrandGrandGrand
ParkParkParkPark
Westlake/M
acArthur P
ark
Warner Ctr
Roscoe
Pico/Alis
o
Mariach
i Plaza
Long Beach Bl
Artesia
Del Amo
Civic Ctr/
GrandPark
Allen
LakeSierra
Madre Villa
Arcadia
Monrovia
Duarte/City
of Hope
Irwindale
Azusa Downtown
APU/Citrus Colle
ge
Lincoln/Cypress
Heritage Sq
Southwest Museum
Highland Park
Fillmore
Del Mar
Memorial Park
South Pasadena
Westlake/M
acArthur P
ark
Wilshire
/Vermont
Pershing
Chinatown
Union Station
Chinatown
Square
7th St/Metro CtrPico
LATTC/OrthoInstitute
Jefferson/U
SC
LAX FlyAwayAmtrak & MetrolinkLAX FlyAway
LAX FlyAwayLAX FlyAway
LAX FlyAway
LAX FlyAway
LAX FlyAway
LAX FlyAway
LAX Shuttle G
Amtrak & MetrolinkMetro
link
Sherman Way
Warner Ctr
Roscoe
Nordhoff
Chatsworth
Hollywood/W
estern
Vermont/S
anta MonicaHolly
wood/Western
Hollywood/V
ine
Hollywood/H
ighlandNorth
Hollywood
Balboa
Balboa
Woodley
Sepulveda
Sepulveda
Van Nuys
Van Nuys
Woodman
Valley Colle
ge
Laurel Canyo
n
Canoga
Canoga
De Soto
De Soto
Pierce Colle
ge
Pierce Colle
ge
Tampa
Tampa
Reseda
Reseda
Vermont/B
everly
Vermont/S
anta Monica
Vermont/S
unset
Vermont/S
unset
Amtrak & Metrolink
Soto
Indiana
Maravilla
East LA Civic C
tr
Atlantic
El Monte
Cal State LA
LAC+USC Medica
l Ctr
Pico/Alis
o
Mariach
i Plaza
Wilshire
/
Normandie
Wilshire
/Western
ExpoPark
/USC
Expo/Vermont
Expo/Western
Expo/Crenshaw
Farmdale
Expo/La Brea
La Cienega/Jefferson
Culver C
ity
Palms
Westwood/R
ancho Park
Expo/Sepulveda
Expo/Bundy
26th St/Bergamot
Expo/Sepulveda
Expo/Bundy
26th St/Bergamot
17th St/S
MC
Downtown Santa Monica
Mariposa
El Segundo
Douglas
Redondo Beach
37th St/USC
Rosecrans
Harbor
Carson
Pacific CoastHwy
GatewayTransit Ctr
Long Beach Bl
AvalonVerm
ont/
AthensCrenshaw
Hawthorne/Lennox
Aviation/L
AX
Lakewood Bl
Norwalk
Norwalk
Slauson
Manchester
Harbor F
wy
5th St
1st St
PacificAv
DowntownLong Beach
PacificAv
Washington
Vernon
Slauson
Florence
Firestone
Compton
Artesia
Del Amo
Wardlow
Willow St
Pacific Coast Hwy
Anaheim St
103rd St/
Willowbrook/Rosa Parks
Watts Towers 103rd St/
Willowbrook/Rosa Parks
DowntownLong Beach
Grand/LATTC
San Pedro St
Watts Towers
Union Station
Little To
kyo/
Little To
kyo/
Arts Dist
SAN FERNANDO VALLEY
SAN GABRIEL VALLEY
EASTSIDE
SOUTH BAY
San Pedro
GATEWAY CITIES
DOWNTOWNLA
SOUTH LA
CENTRAL LA
SAN FERNANDO VALLEY
SAN GABRIEL VALLEY
EASTSIDE
SOUTH BAY
San Pedro
GATEWAY CITIES
DOWNTOWNLA
SANTAMONICA
SOUTH LA
CENTRAL LA
WESTSIDE
metro.netMetro Rail & Busway
North Hollywood to Union Station
Metro Rail
Wilshire/Western to Union StationPurple Line
Blue Line
Expo Line
Orange Line
Amtrak
LAX FlyAway
Metrolink
Metro Busway
Regional Rail
Green Line
Gold Line
Downtown LA to Long Beach
Downtown LA to Santa Monica
Redondo Beach to Norwalk
East Los Angeles to Azusa
Silver Line Chatsworth to North Hollywood
San Pedro to El Monte
amtrak.com
metrolinktrains.com
lawa.org/flyaway
LAX Shuttle (free)lawa.org
Street Service in Downtown LAand San Pedro
MAY 2016 Subject to Change
Airport Shuttle
Rail Station
StationTransfer
Busway
Station
UNDERCONSTRUCTION
Busway StreetService
Red Line
17-2
413M
M ©
2017
LAC
MTA
APR 2017 Subject to Change
13
Silicon Beach is the LA technology corridor that follows the coast from Santa Monica south through Venice, Culver City, Playa Vista and El Segundo. This rapidly growing community is now reportedly home to 631 Tech Start-ups, 28 Incubators, 15 Accelerators, 50 Investors, 28 Coworking spaces, 75 Start-up Services and 3 Hackerspaces. The region is considered the second or third largest tech hub in the world. According to the LA Economic Development Council, LA has more people employed in high-tech jobs (368,500) than any other metro region in the U.S.
Major technology companies have opened offices in the region including Google, Yahoo!, YouTube, BuzzFeed, Facebook, Salesforce, Electronic Arts, EdgeCast Networks and MySpace. Many Fortune 500 companies based outside of Los Angeles have also established a presence in Silicon Beach.
Major technology, entertainment and new media tenants located in Silicon Beach include Facebook, TMZ, Sony, Belkin International, Electronic Arts, Konami, Gamefly, All3Media and TV Guide. Other prominent tenants include Toms Shoes, Fox Sports, Frank Gehry Partners, California Pizza Kitchen and world renowned advertising agencies such as 72 and Sunny, Team One (a division of Saatchi & Saatchi), Omnicom/OMD and Deutsch. Google recently purchased 12 acres of land in Playa Vista and Yahoo relocated offices from Santa Monica to Playa Vista.
The coastal Silicon Beach communities have been a magnet for entrepreneurial tech startups in recent years. This area is positioned to continue to benefit as the region is experiencing significant residential and commercial property demand with companies relocating to Silicon Beach from other Los Angeles communities.
Top 10 Santa Monica Employers Employees
UCLA Medical Center 2,351Santa Monica College 1,977City of Santa Monica 1,870Providence Saint John’s Health Center 1,750Santa Monica-Malibu Unified School District 1,457RAND Corporation 862Activision 827LionsGate Entertainment 799Universal Music Group 760E.T. Whitehall 610
Top Occupations (5-mile) %
Management 15.72%Arts & Entertainment 11.06%Sales 10.70%Office/Administrative Support 10.00%Business/Financial Operations 8.22%
EMPLOYMENT
CITYWIDE TOTALS LEADING ECONOMIC SECTORS
9,463BUSINESSES
88KEMPLOYEES
28%
Creative/Tech
17%
Hospitality
11%
Healthcare
10%
Retail
14
15
AREA AMENITIES
Venice Beach
Main Street
Fairmont Hotel
Santa Monica Place
Annenberg Beach House
Montana Avenue
3rd Street Promenade
Jonathan Club
Santa Monica Pier
Marina del Rey
Palisades ParkThe Beach Club
Pacific Palisades
16
17
INVESTMENT SUMMARYPricing Summary
List Price $2,550,000
Price/Unit $637,500
Price/SF $764.85
Occupancy 100%
Cap Rate 3.03%
GRM 19.98
Pro Forma Cap Rate 4.69%
Pro Forma GRM 15.18
Financing Summary
Required Equity 56% $1,428,000
Proposed New Loan Amount 44% $1,122,000
Proposed New Loan 10-Year Fixed Rate 4.00%
Loan to Value 44% LTV
Debt Coverage Ratio 1.20 DCR
Rent Roll Summary
Units Type Actual Min - Max Actual Avg Pro Forma Avg
4 2 Bed + 1 Bath $900 - $3,500 $2,659 $3,500
4 Total Units Weighted Avg $2,659 $3,500
The financial data included wherein has been obtained from sources we believe to be reliable, however, we assume no responsibility for its correctness. Last Updated 2/13/18.
18
Actual Pro FormaAnnually $ / Unit $ / SF % Annually $ / Unit $ / SF %
Gross Rental Income $127,643 $31,911 $38.29 $168,000 $42,000 $50.39
Annual Other Income - -
Total Other Income - -
Less Vacancy / Collection Loss ($3,829) ($957) ($1.15) 3.0% ($5,040) ($1,260) ($1.51) 3.0%
Effective Gross Income $123,813 $30,953 $37.14 $162,960 $40,740 $48.88
Expenses
Taxes Actual Tax Rate & Direct Assessment $29,850 $7,463 $8.95 23.4% $31,056 $7,764 $9.32 18.5%
Insurance Estimated at $0.35 / SF $1,167 $292 $0.35 0.9% $1,238 $309 $0.37 0.7%
Offsite Management Estimated at 4.00% $5,106 $1,276 $1.53 4.0% $0 $0 $0.00 0.0%
Utilities & Rubbish Estimated at $900 / unit $3,600 $900 $1.08 2.8% $3,819 $955 $1.15 2.3%
General & Administrative Estimated at $125 / unit $500 $125 $0.15 0.4% $530 $133 $0.16 0.3%
Professional & Legal Fees Estimated at $125 / month $1,500 $375 $0.45 1.2% $1,591 $398 $0.48 0.9%
Landscape & Pest Control Estimated at $125 / month $1,500 $375 $0.45 1.2% $1,591 $398 $0.48 0.9%
Maintenance & Repair Estimated at $700 / unit $2,800 $700 $0.84 2.2% $2,971 $743 $0.89 1.8%
Miscellaneous & Reserves Estimated at $150 / unit $600 $150 $0.18 0.5% $618 $155 $0.19 0.4%
Less Total Expenses ($46,623) $11,656 $13.98 36.5% ($43,415) $10,854 $13.02 25.8%
Net Operating Income $77,190 $19,298 $23.15 $119,545 $29,886 $35.86
Debt Service
Principal Reduction ($19,759) ($19,759)
Interest Paid ($44,520) ($44,520)
Less Debt Service Year 1 Principal & Interest ($64,279) ($64,279)
After Debt Service Cash Flow $12,911 $55,266
Leveraged Cash on Cash 0.90% 3.87%
Return on Investment 2.29% 5.25%
Cap Rate 3.03% 4.69%
GRM 19.98 15.18
OPERATING DATA
19
SALE COMPARABLES
# Address Units Price Building SF $ / SF GRM Cap Rate Year Built Parking COE
1 1024 Maple StreetSanta Monica, CA 90405 4 $2,600,000 3,382 $768.78 18.47 3.80% 1949 - 9/9/2016
2 642 Ocean Park BoulevardSanta Monica, CA 90405 4 $1,515,000 1,764 $858.84 Vacant* - 1936 7 7/27/2017
3 2434 Oak StreetSanta Monica, CA 90405 4 $1,660,000 3,000 $553.33 21.00 2.90% 1952 4 5/13/2016
4 1007 Ocean Park BoulevardSanta Monica, CA 90405 6 $2,100,000 3,342 $628.37 17.80 3.50% 1948 8 5/18/2017
5 2525 7th StreetSanta Monica, CA 90405 4 $1,600,000 2,172 $736.65 29.25 2.39% 1952 - 1/29/2016
Averages 4 $1,895,000 2,732 $709.19 21.63 3.19% 1947 6 10/24/16
1031 Ocean Park BoulevardSanta Monica, CA 90405 4 $2,550,000 3,334 $764.85 19.98 3.03% 1947 4 –
Proforma 15.18 4.69%
*Sold vacant for renovations
20
1
2
3
4
5
21
RENT COMPARABLES
# Address # Units Type SF Rent $ / SF Year Built
1 1501 Pearl StreetSanta Monica, CA 90405 11 2 Bed + 1 Bath - $3,000 - 1959
2 1012 Hill StreetSanta Monica, CA 90405 7 2 Bed + 1 Bath 950 $2,950 $3.11 1964
3 2909 10th StreetSanta Monica, CA 90405 6 2 Bed + 1 Bath 715 $2,700 $3.78 1959
4 714 Pine StreetSanta Monica, CA 90405 4 2 Bed + 1 Bath ~900 $2,895 - 1954
2312 6th StreetSanta Monica, CA 90405 4 2 Bed + 1.5 Bath 900 $3,095 $3.44 1966
6 1020 Ocean Park BoulevardSanta Monica, CA 90405 8 2 Bed + 2 Bath 1,137 $3,900 $3.43 1981
Averages 7 - 920 $3,090 $3.44 1964
1031 Ocean Park BoulevardSanta Monica, CA 90405 4 2 Bed + 1 Bath 850 $2,709 $3.19 1947
Proforma $3,500 $4.12
5
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CONFIDENTIALITY & DISCLAIMERThis Offering Memorandum has been prepared by Colliers International (“Colliers”) and contains select information pertaining to the business and affairs of 1031 Ocean Park Boulevard in Santa Monica, California (“the Property”). This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers from sources it deems reliable. Owner, nor their officers, employees or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum, or any of its contents, and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum from Colliers, you agree:
1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering
Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.
Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of 1031 Ocean Park Boulevard, or if you should discontinue such negotiations in the future, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
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Colliers International 11601 Wilshire Blvd,Suite 1950Los Angeles, CA 90025www.colliers.com
EXCLUSIVELY LISTED BY:
Kitty WallaceExecutive Vice President+ 1 310 622 [email protected] No. 01218779
www.kittywallaceteam.com
Selling Southern California, One Building at a Time!
