OFFERING MEMORANDUM€¦ · offering memorandum. 9 units in prime mar vista . short bike ride to...

OFFERING MEMORANDUM

9 UNITS IN PRIME MAR VISTA SHORT BIKE RIDE TO VENICE BEACH

12445 PACIFIC AVELOS ANGELES, CA 90066

DRE# 01991628

PRESENTED BY

LOCATION OVERVIEWProperty Location

PROPERTY SUMMARYProperty Highlights Property Details Photography

FINANCIALSFinancial Overview Rent Roll

COMPARABLESSales Comps Active/Pending Sales ComsRent Comps

Kenny StevensBRE# 01090251

[email protected]

9454 Wilshire Blvd, Seventh Floor

Beverly Hills, CA 90212

MARKETING PACKAGEOVERVIEW --------------------------------------


DRE# 01991628

LOCATIONMAR VISTA, CA --------------------------------------


MAR VISTA - LOS ANGELES, CA 9006612445 Pacific Ave, is located in the booming neighborhood of Mar Vista — close to the Mar VistaSunday Farmer's Market, Venice Beach, Marina Del Rey, Silicon Beach, Santa Monica, and CulverCity. Located only a short bike ride from trendy Abbot Kinney Blvd where some of the best shoppingand restaurants in LA are located. Easy commute to LAX, Downtown LA and Beverly Hills and all thatWest LA has to offer!

Over the course of just a couple of years, Mar Vista has been among the most significant emergingsubmarkets in Los Angeles. Its central location on the Westside along with its proximity to Venice andSilicon Beach has made this area irresistible to residents. With Venice and Playa Vista filling up fastand Santa Monica virtually out of space, developers and brokers are eying Mar Vista as the nextprevalent neighborhood. According to Zillow, the median home value in Mar Vista is $1,550,900. MarVista home values have gone up 3.3% over the past year and Zillow predicts they will rise 7.8% withinthe next year.

Venice has become one of the most expensive neighborhoods in Los Angeles. According to the realestate website Zillow, it is the seventh most expensive neighborhood in which to buy a house, itsmedian home value — $1,578,200 — coming in just behind the Hollywood Hills and just ahead ofBeverlywood. According to ApartmentList.com, the average rental price of a two-bedroomapartment in Venice is $4,900 a month — well ahead of Westwood, Santa Monica, Brentwood, evenBel-Air and the Hollywood Hills. When you rank neighborhoods in the city of L.A. by price per squarefoot of real estate, Venice becomes even loftier: According to data provided to L.A. Weekly byZillow, Venice is tied with Bel-Air for No. 2. Only the Pacific Palisades is more expensive per squarefoot. As for median rental price per square foot, Venice is the most expensive place in L.A.

Silicon Beach is the Westside region of the Los Angeles metropolitan area that is home to over 500tech startup companies. Major technology companies have opened Offices in the region includingGoogle, Yahoo!, YouTube, BuzzFeed, Facebook, AOL, Electronic Arts, EdgeCast Networks, andMySpace. The region is considered the second- or third-largest tech hub in the world, according tovarious reports. This has had major impacts on the type and availability of office space and on homeprices in Mar Vista, Playa Vista, Playa Del Rey, Westchester, Santa Monica, and Venice, as theseareas have become more desirable due to this influx.

LOCATIONOVERVIEW

Mitsuwa Market Place

12445 PACIFIC AVE

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Alana’s Coffee Roasters

Venice Grind Coffee Company

Hatchet Hall

Abbot Kinney BlvdSalt AirGjelina

Salt & StrawIntelligentsia Coffee

SatineAust

The Butchers DaughterAviator Nation

Venice Canals

AMC Dine-In Marina 6Yard HouseUlta Beauty

Mar Vista Farmer’s Market

PROPERTY DESCRIPTION12445 Pacific Ave, this 9-unit multi-family investment opportunity is located in the rapidly growing Westside neighborhood of Mar Vista. The property is just a short bike ride to Venice Beach, Marina Del Rey, Santa Monica as well as walking distance to a myriad of coffee shops, restaurants, shopping, and the Mar Vista Farmers Market. Entertainment value and proximity to a variety of Westside neighborhoods add to this property’s long-term appreciation.

The property has been well maintained and consists of mostly two-bedroom units with copper plumbing and has approximately 11 parking spots. The LONG TERM OWNER has never approached tenants for relocation and with 64% upside in rents, this is a significant opportunity to add value in an A+ location.

PROPERTY DETAILSUnits 9Major IntersectionMarket Mar VistaAPN 4235-013-011Zoning Type LAR3Lot Size SF 6,992

PROPERTY SUMMARY PROPERTY DETAILS

VENICE BLVD

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PACIFIC AVE

PROPERTY SUMMARY PROPERTY HIGHLIGHTS

9 UNITS IN PRIME MAR VISTA •HUGE upside in rents: Approximately 64%•First floor units have private patios•PRIME Mar Vista location, south of Venice and just west of Centinela•Perfect unit mix with almost all 2 bedroom units •Bright, spacious units averaging almost 900 square feet each •Approximately 11 parking spots •Copper plumbing •Roof is approximately 6 years old

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PROPERTY SUMMARY PROPERTY PHOTOS --------------------------------------


FINANCIALSFINANCIAL OVERVIEW - $2,850,000

INVESTMENT SUMMARY SCHEDULED INCOMEPurchase Price: $2,850,000 UNIT MIX CURRENT PRO FORMADown Payment: $2,850,000 100% Units Beds Baths Average Monthly Rent MonthlyYear Built: 1969 1 2 2 $1,692 $1,692 $2,895 $2,895Units: 9 7 2 1 $10,692 $10,692 $2,495 $17,465Approx. Lot Size: 6,992 Sq. Ft. 1 Single 1 $930 $930 $1,695 $1,695Approx. Bldg. NRSF: 7,220 Sq. Ft. Price per NRSF: $395 $13,314 $22,055Price per Unit: $316,667

CURRENT PRO FORMA Laundry Income: $300 $300GRM: 17.45 10.62 Other Income (storage): $0 $0CAP: 3.32% 6.84% Monthly Gross Income: $13,614 $22,355

Annual Gross Income: $163,368 $268,260

ANNUAL INCOME ANNUAL EXPENSESCURRENT PRO FORMA AMOUNT

Scheduled Gross Income: $163,368 $268,260 $35,625Vacancy Allowance: ($3,267) 2.00% * ($8,048) 3.00% $2,888Gross Operating Income: $160,101 $260,212 $7,220Less Expenses: ($65,340) 40% * ($65,340) 24% Repairs & Maintenance: $9,802Net Operating Income: $94,761 $194,872 Professional Mgmt $8,005Less Loan Payment: $0 $0 $1,800Pre-Tax Cash Flow: $94,761 3.32% ** $194,872 6.84%Plus Principal Reduction: $0 $0 EXPENSES ARE ESTIMATEDTotal Return Before Taxes: $94,761 3.32% ** $194,872 6.84%* As a percent of the scheduled gross income. ** As a percent of the down payment $65,340

$9.05$7,260

Scheduled Rent:

ITEMTaxes: (new) 1.25%

Expense / NRSF:

Insurance:

Expense / Unit:

Total Expenses:

Utilities:

Misc:

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Sheet1

INVESTMENT SUMMARYSCHEDULED INCOME

Purchase Price:$2,850,000UNIT MIXCURRENTPRO FORMA

Down Payment:$2,850,000100%UnitsBedsBathsAverageMonthlyRentMonthly

Year Built:1969122$1,692$1,692$2,895$2,895

Units:9721$10,692$10,692$2,495$17,465

Approx. Lot Size:6,992Sq. Ft.1Single1$930$930$1,695$1,695

Approx. Bldg. NRSF:7,220Sq. Ft.

Price per NRSF:$395Scheduled Rent:$13,314$22,055

Price per Unit:$316,667

CURRENTPRO FORMALaundry Income:$300$300

GRM:17.4510.62Other Income (storage): $0$0

CAP:3.32%6.84%Monthly Gross Income:$13,614$22,355

Annual Gross Income:$163,368$268,260

ANNUAL INCOMEANNUAL EXPENSES

CURRENTPRO FORMAITEMAMOUNT

Scheduled Gross Income:$163,368$268,260Taxes: (new) 1.25%$35,625

Vacancy Allowance:($3,267)2.00%*($8,048)3.00%Insurance:$2,888

Gross Operating Income:$160,101$260,212Utilities:$7,220

Less Expenses:($65,340)40%*($65,340)24%Repairs & Maintenance:$9,802

Net Operating Income:$94,761$194,872Professional Mgmt$8,005

Less Loan Payment:$0$0Misc:$1,800

Pre-Tax Cash Flow:$94,7613.32%**$194,8726.84%

Plus Principal Reduction:$0$0EXPENSES ARE ESTIMATED

Total Return Before Taxes:$94,7613.32%**$194,8726.84%

* As a percent of the scheduled gross income. ** As a percent of the down paymentTotal Expenses:$65,340

Expense / NRSF:$9.05

Expense / Unit:$7,260

Sheet2

CurrentMarketLease

Unit #Unit TypeRentRentDateNotes

1Single$930$1,6959/1/13

22 + 1$1,699$2,4957/15/18

32 + 1$1,556$2,4958/15/11

42 + 2$1,692$2,8953/15/10

52 + 1$991$2,4954/1/95

62 + 1$1,800$2,4959/1/17

72 + 1$1,643$2,4957/1/14

82 + 1$1,420$2,4953/1/09

92 + 1$1,583$2,4957/1/11

LAUNDRY INCOME:$300$300

MONTHLY TOTAL:$13,614$22,355

ANNUAL TOTAL:$163,368$268,260

FINANCIALSRENT ROLL --------------------------------------


Current Market LeaseUnit # Unit Type Rent Rent Date Notes

1 Single $930 $1,695 9/1/20132 2 + 1 $1,699 $2,495 7/15/20183 2 + 1 $1,556 $2,495 8/15/20114 2 + 2 $1,692 $2,895 3/15/20105 2 + 1 $991 $2,495 4/1/19956 2 + 1 $1,800 $2,495 9/1/20177 2 + 1 $1,643 $2,495 7/1/20148 2 + 1 $1,420 $2,495 3/1/20099 2 + 1 $1,583 $2,495 7/1/2011

$300 $300

$13,614 $22,355

$163,368 $268,260ANNUAL TOTAL:

LAUNDRY INCOME:

MONTHLY TOTAL:

Sheet1

INVESTMENT SUMMARYSCHEDULED INCOME

Purchase Price:$2,900,000UNIT MIXCURRENTPRO FORMA

Down Payment:$2,900,000100%UnitsBedsBathsAverageMonthlyRentMonthly

Year Built:1969122$1,692$1,692$2,695$2,695

Units:9721$10,692$10,692$2,495$17,465

Approx. Lot Size:6,992Sq. Ft.1Single1$930$930$1,695$1,695

Approx. Bldg. NRSF:7,220Sq. Ft.

Price per NRSF:$402Scheduled Rent:$13,314$21,855

Price per Unit:$322,222

CURRENTPRO FORMALaundry Income:$300$300

GRM:17.7510.91Other Income (storage): $0$0

CAP:3.25%6.62%Monthly Gross Income:$13,614$22,155

Annual Gross Income:$163,368$265,860

ANNUAL INCOMEANNUAL EXPENSES

CURRENTPRO FORMAITEMAMOUNT

Scheduled Gross Income:$163,368$265,860Taxes: (new) 1.25%$36,250

Vacancy Allowance:($3,267)2.00%*($7,976)3.00%Insurance:$2,888

Gross Operating Income:$160,101$257,884Utilities:$7,220

Less Expenses:($65,965)40%*($65,965)25%Repairs & Maintenance:$9,802

Net Operating Income:$94,136$191,919Professional Mgmt$8,005

Less Loan Payment:$0$0Misc:$1,800

Pre-Tax Cash Flow:$94,1363.25%**$191,9196.62%

Plus Principal Reduction:$0$0EXPENSES ARE ESTIMATED

Total Return Before Taxes:$94,1363.38%**$191,9196.62%

* As a percent of the scheduled gross income. ** As a percent of the down paymentTotal Expenses:$65,965

Expense / NRSF:$9.14

Expense / Unit:$7,329

Sheet2

CurrentMarketLease

Unit #Unit TypeRentRentDateNotes

1Single$930$1,6959/1/13

22 + 1$1,699$2,4957/15/18

32 + 1$1,556$2,4958/15/11

42 + 2$1,692$2,8953/15/10

52 + 1$991$2,4954/1/95

62 + 1$1,800$2,4959/1/17

72 + 1$1,643$2,4957/1/14

82 + 1$1,420$2,4953/1/09

92 + 1$1,583$2,4957/1/11

LAUNDRY INCOME:$300$300

MONTHLY TOTAL:$13,614$22,355

ANNUAL TOTAL:$163,368$268,260

COMPARABLESSALES COMPS

Property Photo Address Sale Price COE # ofUnitsBuilding

SFPrice/Unit

YearBuilt Unit Mix Comments

12445 Pacific AveLos Angeles, CA 90066 $2,850,00 - 9 7,220 $316,667 1963

(1) 2+2(7) 2+1

(1) SingleSubject Property

1 12240 Pacific AveLos Angeles, CA 90066 $4,140,000 7/18/18 11 6,532 $376,363 1964(2) 2+2(7) 1+1

(2) Studio

!0 units delivered vacant. 11 Parking spaces.

2 4706-4712 Centinela AveLos Angeles, CA 90066

$2,400,000 3/23/18 6 4,032 $400,000 1953 (6) 1+1

3 4320-4326 Inglewood BlvdLos Angeles, CA 90066 $2,350,000 5/4/17 6 5,316 $391,667 1953(4) 2+1(2) 1+1

4 3632 S Centinela AveLos Angeles, CA 90066 $2,200,000 3/31/17 6 6,200 $366,667 1944(2) 3+2(2) 2+2(2) 2+1

5 3745 S Centinela AveLos Angeles, CA 90066 $1,763,000 8/15/17 5 4,554 $352,600 1959(3) 2+1(2) 1+1

6 3700 Inglewood BlvdLos Angeles, CA 90066

$6,700,000 8/15/18 20 16,636 $335,000 1955 (12) 2+1(8) 1+1 22 Parking spaces.

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COMPARABLESSALES COMPS

Sales Comps12240 Pacific Ave4706-4712 Centinela Ave4320-4326 Inglewood Blvd3632 S Centinela Ave3745 S Centinela Ave3700 Inglewood Blvd

1

2

3

45

6

123456

12445 Pacific Ave

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COMPARABLESACTIVE / PENDING SALE COMPS

Property Photo Address List Price Status # ofUnitsBuilding

SFPrice/Unit

YearBuilt Unit Mix Comments

12445 Pacific AveLos Angeles, CA 90066 $2,850,00 ACTIVE 9 7,220 $316,667 1963

(1) 2+2(7) 2+1

(1) SingleSubject Property

1 12747 Mitchell AveLos Angeles, CA 90066 $2,075,000 ACTIVE 5 3,062 $415,000 1962(1) 2+1(4) 1+1

2 12767 Mitchell AveLos Angeles, CA 90066

$6,500,000 PENDING 17 13,155 $382,352 1960(2) 2+1(6) 2+1(9) 1+1

3 12518 Venice BlvdLos Angeles, CA 90066 $4,150,000 PENDING 11 9,652 $377,272 1948(1) 3+2(8) 2+1(2) 1+1

4 12757 Mitchell AveLos Angeles, CA 90066 $2,900,000ACTIVE-

CONTRACT 8 5,984 $362,500 1957(7) 2+1(1) 1+1

5 3755 Inglewood BlvdLos Angeles, CA 90066 $5,195,000 PENDING 15 7,731 $346,333 1957(3) 2+1(4) 1+1

(2) Studio

6 12718 Mitchell AveLos Angeles, CA 90066

$3,100,000 ACTIVE 9 7,935 $344,444 1971 (2) 2+2(7) 1+1

7 3792 Ashwood AveLos Angeles, CA 90066

$2,000,000 PENDING 7 2,499 $285,714 1949/1954(2) 1+1

(5) Studio

Units are very small. Located on corner of busy Venice Blvd and Ashwood

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COMPARABLESACTIVE / PENDING SALE COMPS

Active/Pending Comps12747 Mitchell Ave12767 Mitchell Ave12518 Venice Blvd12757 Mitchell Ave3755 Inglewood Blvd12718 Mitchell Ave3792 Ashwood Ave

12

3

4

5

67

123456

12445 Pacific Ave

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7

Property Photo Address Rent Unit Type Comments

12445 Pacific AveLos Angeles, CA 90066

$1,692 2+2

Subject Property$991-$1,800 2+1

$930 Single

1 4125 Inglewood BlvdLos Angeles, CA 90066

$2,900 2+2 Unit features newly renovated kitchen with new appliances. 1 parking spot included.

2 12707 Caswell AveLos Angeles, CA 90066

$2,795 2+2 Very bright and large unit with high ceilings, 2 gas burning fire places and rooftop deck.

3 3974 Moore StLos Angeles, CA 90066

$2,795 2+2 Hardwood floors, washer & dryer in unit with balcony and parking.

4 3714 Corinth AveLos Angeles, CA 90066

$2,795 2+1 Completely remodeled unit.

5 3792 Ashwood AveLos Angeles, CA 90066

$2,395 1+!Units are small in size, located on busy

Venice Blvd. 1 car parking.

$1,750 Studio

COMPARABLESRENTAL COMPS --------------------------------------


COMPARABLESRENTAL COMPS

Rental Comps4125 Inglewood Blvd12707 Caswell Ave3974 Moore St3714 Corinth Ave3792 Ashwood Ave

123

4

1

5

2345

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12445 Pacific Ave


Kenny Stevens310.963.7851

BRE# [email protected]

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. Buyer must verify the information and bears all risk for any inaccuracies.

PRESENTED BY

DRE# 01991628

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OFFERING MEMORANDUM€¦ · offering memorandum. 9 units in prime mar vista . short bike ride to...

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