OFFERING MEMORANDUM Mixed Use Investment Opportunity...The property is a mixed-use development...

KW COMMERCIAL700 S. Flower Street,Suite 2900Los Angeles, CA 90017

CARLOS VASQUEZBroker Associate0 [email protected] #01720546

DAN MORALESBrokerO [email protected] #0052643

RICHARD MARTINEZAssociateO [email protected] #02023107

Mixed Use Investment Opportunity

OFFERING MEMORANDUM

PRESENTED BY:

2626 E. CESAR E. CHAVEZ AVENUE, LOS ANGELES, CA, 90033

OFFERING MEMORANDUM

www.kwcommercial.com 2

KW COMMERCIAL700 S. Flower Street,Suite 2900Los Angeles, CA 90017

Confidentiality & Disclaimer

CARLOS VASQUEZBroker Associate0 [email protected] #01720546

DAN MORALESBrokerO [email protected] #0052643

RICHARD MARTINEZAssociateO [email protected] #02023107

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third partysources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance orlack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projectedfinancial 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 toaccuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whetherwritten 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 theseand other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for aparty 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 inspectionsand investigations including through appropriate third party independent professionals selected by such party. All financial data should beverified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independentprofessionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financialdata or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by theparty with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions shouldbe discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complieswith applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by Downtown LA in compliance with all applicable fairhousing and equal opportunity laws.

We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty orrepresentation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, orwithdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance ofthe property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

OFFERING MEMORANDUM

PRESENTED BY:

LOS ANGELES, CA

http://www.kwcommercial.com


PROPERTY INFORMATION

1 | PROPERTY INFORMATION

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION

PROPERTY DETAILS

COMPLETE HIGHLIGHTS

ADDITIONAL PHOTOS

1PROPERTY INFORMATION2626 E CESAR E. CHAVEZ AVE

OFFERING MEMORANDUM


Executive Summary

2626 E CESAR E. CHAVEZ AVE 1 | PROPERTY INFORMATION

PROPERTY OVERVIEWThe property sits on approximately 8,983 SQFT of land with abuilding area of around 10,758 SQFT. The building was built in 1925.The property is a mixed-use development totaling 13 units, 6 streetretail and 7 residential units. The building is zoned LAC2-1 and itsAPN number 5180-009-006. There are 6 parking spaces available.The building sits on the corner of Cesar E Chavez Ave and N MottStreet. Excellent owner-user or value-add opportunity.

PROPERTY FEATURESTwo-story mixed-use residential/retail property located on thecommercial corridor of East Cesar E. Chavez Avenue

Excellent owner-user or value-add opportunity

State Enterprise Zone

Adelante Eastside Redevelopment

Transit Priority

APN: 5180-009-006

Lot Size: 8,983 SQFT

Building Size: 10,758 SQFT

• 13 Units; 7 residential & 6 retail

SALE PRICE: $2,900,000

UNITS: 13

PRICE PER UNIT: $223,077

CAP RATE: 5.53%

GRM: 15.17

NOI: $160,449

LOT SIZE: 8983 SF

BUILDING SIZE: 10,758 SF

YEAR BUILT: 1925

ZONING: LAC2-1

MARKET: Los Angeles

SUB MARKET: Boyle Heights

CROSS STREETS:Cesar E Chavez Avenue & N. Mott

Street



PROPERTY OVERVIEWThe property sits on approximately 8,983 SQFT of land witha building area of around 10,758 SQFT. The building wasbuilt in 1925. The property is a mixed-use developmenttotaling 13 units, 6 street retail and 7 residential units. Thebuilding is zoned LAC2-1 and its APN number5180-009-006. There are 6 parking spaces available. Thebuilding sits on the corner of Cesar E Chavez Ave and NMott Street. Excellent owner-user or value-add opportunity.

LOCATION OVERVIEWEastside Properties and the VCA Realty Group of KWDTLACommercial has been selected to exclusively market for salean 10,758 SQFT mixed-use retail and residential buildinglocated at 2626 E Cesar Chavez Ave in Los Angeles, CA90033.Boyle Heights is a largely residential neighborhood thatprovides access to the city's best amenities. Auxiliary crossstreet includes E. Cesar Chavez Avenue and N. Mott Street.Cesar Chavez Avenue serves as one of the main arteries ofthe neighborhood.2626 E. Cesar E. Chavez Avenue is located in CouncilDistrict 14. This avenue is one of the most active corridorson the East Side. Metro Gold Line developments haveallowed for greater access to this thoroughfare, improvingpedestrian and bicycle facilities nearby.The immediate sub-market is heavily populated withapproximately 42,000 people within a one mile radius andapproximately 403,000 people within a three-mile radius.

Property Description




Property Details



PROPERTY NAME: Mixed Use Investment Opportunity

STREET ADDRESS: 2626 E Cesar E. Chavez Ave

CITY, STATE, ZIP: Los Angeles, CA 90033

APN: 5180-009-006

LOT SIZE: 8983.0 AC

BUILDING SIZE: 10,758 SF

BUILDING CLASS: C

ZONING: LAC2-1

PARKING SPACES: 6

YEAR BUILT: 1925

NUMBER OF STORIES: 2

NUMBER OF UNITS: 13


Complete Highlights


INVESTMENT HIGHLIGHTS

• Two-story mixed-use residential/retail property located onthe commercial corridor of East Cesar E. Chavez Avenue

• Excellent owner-user or value-add opportunity

• State Enterprise Zone

• Adelante Eastside Redevelopment

• Transit Priority

• APN: 5180-009-006

• Lot Size: 8,983 SQFT

• Building Size: 10,758 SQFT

• 13 Units; 7 residential & 6 retail

•




Additional Photos



LOCATION INFORMATION

2 | LOCATION INFORMATION

REGIONAL MAP

LOCATION MAPS

AERIAL MAP

2LOCATION INFORMATION2626 E CESAR E. CHAVEZ AVE

OFFERING MEMORANDUM

2626 E Cesar E. Chavez Ave

Regional Map

2626 E CESAR E. CHAVEZ AVE 2 | LOCATION INFORMATION




Location Maps



Aerial Map




FINANCIAL ANALYSIS

3 | FINANCIAL ANALYSIS

FINANCIAL SUMMARY

INCOME & EXPENSES

RENT ROLL

UNIT MIX SUMMARY

3FINANCIAL ANALYSIS2626 E CESAR E. CHAVEZ AVE

OFFERING MEMORANDUM

INVESTMENT OVERVIEW

Price $2,900,000

Price per Unit $223,076

GRM 15.2

CAP Rate 5.5%

Cash-on-Cash Return (yr 1) 5.53 %

Total Return (yr 1) $160,449

Debt Coverage Ratio -

OPERATING DATA

Gross Scheduled Income $191,180

Other Income $0

Total Scheduled Income $191,180

Gross Income $191,184

Operating Expenses $30,735

Net Operating Income $160,449

Pre-Tax Cash Flow $160,449

FINANCING DATA

Down Payment $2,900,000

Loan Amount -

Debt Service -

Debt Service Monthly -

Principal Reduction (yr 1) -

Financial Summary

2626 E CESAR E. CHAVEZ AVE 3 | FINANCIAL ANALYSIS



INCOME SUMMARY PER SF

Rental Income Annual (Gross) $191,184 $17.77

GROSS INCOME $191,184 $17.77

EXPENSE SUMMARY PER SF

Insurance $5,500 $0.51

Off-Site Management $5,735 $0.53

Utilities(Trash & Water) $5,500 $0.51

Utilities (Gas) $600 $0.06

Maintenance $5,000 $0.46

Pest Control $1,200 $0.11

Legal and Accounting $1,200 $0.11

Reserves $6,000 $0.56

GROSS EXPENSES $30,735 $2.86

NET OPERATING INCOME $160,449 $14.91

Income & Expenses




Rent Roll


TENANTNAME

UNITBED

UNITBATH

UNITSIZE (SF)

CURRENTRENT

MARKETRENT

Market - - 1,095 $2800 $2/ SF

Express Market - - 1,095 $1650 $2/ SF

Nutrition - - 1,095 $1450 $2/ SF

Community - - 1,095 $1130

Remy - - 1,095 $1000 $2/ SF

Barber Shop - - 1,095 $1625 $2/ SF

Multi-family 3 1 - $900 $2383

Multi-family 2 1 - $956 $1864

Multi-family 2 1 - $1,200 $1864

Multi-family 2 1 - $800 $1864

Multi-family 1 1 - $696 $1341

Multi-family 1 1 - $725 $1341

Multi-family 1 1 - $1,000 $1341

TOTALS/AVERAGES 10,758 $15,932 $25,138



Unit Mix Summary


UNIT TYPE COUNT RENT MARKET RENT

3+1 1 $900 $2,383

2+1 3 $985 $1,864

1+1 3 $807 $1,341

Street Retail 6 $1,609 $2

Totals / Averages 13 $15,930 $12,010

*Rents are represented as averages*Current Market rate rent at $2/ SF



SALE COMPARABLES

4 | SALE COMPARABLES

SALE COMPS

SALE COMPS SUMMARY

SALE COMPS MAP

4SALE COMPARABLES2626 E CESAR E. CHAVEZ AVE

OFFERING MEMORANDUM

Sale Comps

2626 E CESAR E. CHAVEZ AVE 4 | SALE COMPARABLES

SUBJECT PROPERTY

2626 E Cesar E. Chavez Ave | Los Angeles, CA 90033

$2,900,000Sale Price: 1925Year Built:

10,758 SFBuilding SF: $269.57Price PSF:

13No. Units: $223,077Price / Unit:

15.17GRM: 5.53%Cap:

$160,449NOI:

2817-2823 E. Cesar E. Chavez Avenue | Los Angeles, CA 90033

$1,900,000Sale Price: 19,136 SFLot Size:

5,891 SFBuilding SF: $322.53Price PSF

03/07/2017Closed:

1

1

2324 E. Cesar E. Chavez Avenue | Los Angeles, CA 90033



02/06/2018Closed:

2

2

2501 E 1st St Los Angeles | Los Angeles, CA 90033



03/10/2017Closed:

3

3

Multi-family/ Retail Mixed Use



Sale Comps


2228-2232 E Cesar E Chavez Ave | Los Angeles, CA 90033

$2,775,000Sale Price: 9,147 AcresLot Size:


4

4


2105-2107 E Cesar E Chavez Ave | Los Angeles, CA 90033

$3,750,000Sale Price: 12,352 SFBuilding SF:

$303.59Price PSF 09/29/2017Closed:

5

5


1972 E. Cesar E. Chavez Avenue | Los Angeles, CA 90033

$692,000Sale Price: 5,663 SFLot Size:


10/17/2017Closed:

6

6

2195 Whittier Blvd | Los Angeles, CA 90023



01/31/2017Closed:

7

7




Sale Comps


2226-2230 Whittier Boulevard | Los Angeles, CA 90023

$3,200,000Sale Price: 12,354 SFBuilding SF:

$259.03Price PSF 03/22/2017Closed:

8

8

Multi-family / Retail Mixed Use



SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS

2626 E Cesar E. Chavez AveLos Angeles, CA 90033

$2,900,000 10,758 SF $269.57 $223,077 5.53% 15.17 13

SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE

1 2817-2823 E. Cesar E. Chavez AvenueLos Angeles, CA 90033

$1,900,000 5,891 SF $322.53 - - - - 03/07/2017

2 2324 E. Cesar E. Chavez AvenueLos Angeles, CA 90033

$1,290,000 4,761 SF $270.95 - - - - 02/06/2018

3 2501 E 1st St Los AngelesLos Angeles, CA 90033

$1,030,000 3,718 SF $277.03 - - - - 03/10/2017

4 2228-2232 E Cesar E Chavez AveLos Angeles, CA 90033

$2,775,000 16,860 SF $164.59 - - - - On Market

5 2105-2107 E Cesar E Chavez AveLos Angeles, CA 90033

$3,750,000 12,352 SF $303.59 - - - - 09/29/2017

6 1972 E. Cesar E. Chavez AvenueLos Angeles, CA 90033

$692,000 2,563 SF $270.00 - - - - 10/17/2017

7 2195 Whittier BlvdLos Angeles, CA 90023

$3,597,500 15,244 SF $235.99 - - - - 01/31/2017

8 2226-2230 Whittier BoulevardLos Angeles, CA 90023

$3,200,000 12,354 SF $259.03 - - - - 03/22/2017

SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS

TOTALS/AVERAGES $2,279,313 9,218 SF $247.27 - - - -

Sale Comps Summary




2626 E Cesar E. Chavez Ave | Los Angeles, CA 90033SUBJECT PROPERTY

Sale Comps Map


1

2817-2823 E. Cesar E. Chavez AvenueLos Angeles, CA 90033

2

2324 E. Cesar E. Chavez AvenueLos Angeles, CA 90033

3

2501 E 1st St Los AngelesLos Angeles, CA 90033

4

2228-2232 E Cesar E Chavez AveLos Angeles, CA 90033

5

2105-2107 E Cesar E Chavez AveLos Angeles, CA 90033

6

1972 E. Cesar E. Chavez AvenueLos Angeles, CA 90033

7

2195 Whittier BlvdLos Angeles, CA 90023

8

2226-2230 Whittier BoulevardLos Angeles, CA 90023



RENT COMPARABLES

5 | RENT COMPARABLES

RENT COMPS

RENT COMPS MAP

5RENT COMPARABLES2626 E CESAR E. CHAVEZ AVE

OFFERING MEMORANDUM

Rent Comps

2626 E CESAR E. CHAVEZ AVE 5 | RENT COMPARABLES

SUBJECT PROPERTY

Los Angeles, CA 90033

2626 E Cesar E. Chavez Ave

1925Year Built: 8983.0 ACLot Size:13No. Units: Avg. Rent/SF:$1,225Avg. Rent: 0 SFAvg. Size:

UNIT TYPE # UNITS RENT

3+1 1 $900

2+1 3 $985

1+1 3 $807

Street Retail 6 $1,609

TOTAL/AVG 13 $1,225


138 N Soto St

500 SFBldg Size:

UNIT TYPE SIZE SF RENT RENT/SF

1+1 500 $1,375 $2.75

1

1



Rent Comps



2821 Folsom St

1,000 SFBldg Size: 0 ACLot Size:


2+1 1,000 $1,799 $1.80

2

2


2508 Houston St



3+2 1,000 $2,195 $2.19

3

3



Rent Comps



2202 Michigan Ave

800 SFBldg Size: 0 ACLot Size:


2+1 800 $1,895 $2.37

4

4


2433 Houston St



3+1 1,100 $2,250 $2.05

5

5



Rent Comps



2107 East Cesar E Chavez Avenue

500 SFBldg Size:


1+1 500 $1,495 $2.99

6

6


638 N Cummings St



3+1 1,000 $2,500 $2.50

7

7



Rent Comps



2641 Pomeroy Ave

500 SFBldg Size:


1+1 500 $1,450 $2.90

8

8

Los angeles, CA 90033

2660 Marengo St

800 SFBldg Size:


1+1 800 $1,200 $1.50

9

9



Rent Comps



1203 East Cesar E Chavez Avenue

800 SFBldg Size: 0 ACLot Size:


2+1 800 $1,750 $2.19

10

10


2422 E 7th St

800 SFBldg Size: 0.018365472910927456 ACLot Size:


2+1 800 $1,750 $2.19

11

11



Rent Comps



3638 Percy St



3+2 1,100 $2,550 $2.32

12

12

Los Angeles , CA 90023

2901 E Olympic Blvd

613 SFBldg Size:


1+1 613 $1,371 $2.24

13

13



Rent Comps



2901 E Olympic Blvd

830 SFBldg Size:


2+1 830 $1,917 $2.31

14

14


2901 E Olympic Blvd



3+1 1,122 $2,251 $2.01

15

15



2626 E Cesar E. Chavez Ave | Los Angeles, CA 90033

SUBJECT PROPERTY

Rent Comps Map


1 138 N Soto StLos Angeles, CA 90033

2 2821 Folsom StLos Angeles, CA 90033

3 2508 Houston StLos Angeles, CA 90033

4 2202 Michigan AveLos Angeles, CA 90033

5 2433 Houston StLos Angeles, CA 90033

6 2107 East Cesar E Chavez AvenueLos Angeles, CA 90033

7 638 N Cummings StLos Angeles, CA 90033

8 2641 Pomeroy AveLos Angeles, CA 90033

9 2660 Marengo StLos angeles, CA 90033

10 1203 East Cesar E Chavez AvenueLos Angeles, CA 90033

11 2422 E 7th StLos Angeles, CA 90033

12 3638 Percy StLos Angeles, CA 90023

13 2901 E Olympic BlvdLos Angeles , CA 90023

14 2901 E Olympic BlvdLos Angeles, CA 90023

15 2901 E Olympic BlvdLos Angeles, CA 90023



DEMOGRAPHICS

6 | DEMOGRAPHICS

DEMOGRAPHICS MAP

RETAILER MAP

6DEMOGRAPHICS2626 E CESAR E. CHAVEZ AVE

OFFERING MEMORANDUM


* Demographic data derived from 2010 US Census

Demographics Map

2626 E CESAR E. CHAVEZ AVE 6 | DEMOGRAPHICS

ETHNICITY 0.25 MILES 0.5 MILES 1 MILE

% HISPANIC 96.1% 96.1% 96.0%

RACE 0.25 MILES 0.5 MILES 1 MILE

% WHITE 58.9% 57.9% 56.0%

% BLACK 0.0% 0.6% 0.8%

% ASIAN 2.3% 1.6% 1.5%

% HAWAIIAN 0.4% 0.3% 0.1%

% INDIAN 0.2% 0.9% 1.2%

% OTHER 37.6% 37.3% 39.0%

POPULATION 0.25 MILES 0.5 MILES 1 MILE

TOTAL POPULATION 6,428 21,595 63,415

MEDIAN AGE 27.7 28.7 29.0

MEDIAN AGE (MALE) 24.3 26.7 27.5

MEDIAN AGE (FEMALE) 30.0 30.5 30.3

HOUSEHOLDS & INCOME 0.25 MILES 0.5 MILES 1 MILE

TOTAL HOUSEHOLDS 1,663 5,460 15,852

# OF PERSONS PER HH 3.9 4.0 4.0

AVERAGE HH INCOME $39,213 $40,881 $43,360

AVERAGE HOUSE VALUE $393,398 $379,962


Retailer Map

2626 E CESAR E. CHAVEZ AVE 6 | DEMOGRAPHICS



Date post:	14-Mar-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

OFFERING MEMORANDUM Mixed Use Investment Opportunity...The property is a mixed-use development...

Documents