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A 49-UNIT APARTMENT BUILDING IN LOS ANGELES, CA 808 SOUTH HOBART BOULEVARD, LOS ANGELES CA 90005 THE ASHBY APARTMENTS
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THE ASHBY APARTMENTS
N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C E
C O N F I D E N T I A L I T Y & D I S C L A I M E RThe 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 substitute for a thorough due diligence investigation. Marcus & Millichap has not made
any investigation, and makes no warranty or representation, 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 provided. All potential buyers must take appropriate measures to verify all of the information set
forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.
© 2018 Marcus & Millichap. All rights reserved.
N O N - E N D O R S E M E N T N O T I C EMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial 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 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.
A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N LY.P L E A S E C O N S U LT L I S T I N G A G E N T F O R M O R E D E TA I L S .
TABLE OF CONTENTS
F I N A N C I A L O V E R V I E W
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E X E C U T I V E S U M M A R Y
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P R O P E R T Y D E S C R I P T I O N
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M A R K E T O V E R V I E W
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TABLE OF CONTENTS
EXECUTIVE SUMMARY
I N V E S T M E N T O V E R V I E W
I N V E S T M E N T H I G H L I G H T S
O F F E R I N G S U M M A RY
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Marcus and Millichap is pleased to present the opportunity to acquire The Ashby Apartments, a five-story, 49-unit multifamily building in the heart of Koreatown. The property is located at 808 S Hobart Boulevard just south of Wilshire Blvd and east of Western Ave. Named “The Ashby,” the building was constructed in 1930, sits on a 17,250 square foot lot and offers a total of 36,925 total square footage. With a walk score of 96, tenants are close to a multitude of restaurants, shops and entertainment. Additionally, all the attractions Downtown LA has to offer are only a few miles away.
This charming art-deco style building offers a unit mix of (39) studio/one-bedroom units and (10) one-bedroom/one-bathroom units. The building features exposed brick, hardwood floors throughout, high ceilings and crown moldings . There is an on-site manager and on-site laundry. The property offers 27 surface parking spots and 12 subterranean parking spots.
The City of Los Angeles has granted the property a Mills Act contract which will lower the property taxes in perpetuity in exchange for the upkeep and maintenance of this property. With the approval of the Mills Act the property has achieved over 50% annual property tax savings. This offering will appeal to any investor looking for a low maintenance building with a significant rental upside in a highly desirable sub-market of Los Angeles.
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I N V E S T M E N T H I G H L I G H T S
• Prime Location - 96 Walk Score
• Abundance of restaurants, grocery stores, & entertainment venues within
walking distance of property
• Extensive Renovations - Interior & Exterior
• Centrally Located - Easy Access To Many Employers
• At the convenience of the 101 granting easy access to Downtown Los
Angeles, West Los Angeles and the San Fernando Valley.
• Mills Act Contract - Over 50% Annual Property Tax Savings
• Secured Parking
• Significant Rental Upside
•
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Cost Per Unit $305,102
Cost Per Square Foot $374.45
CAP Rate - Current 4.06%
CAP Rate - Pro Forma 5.39%
GRM - Current 17.45
GRM - Pro Forma 13.97
$14,950,000 49TotalUnits
O F F E R I N G SU M MA RY
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THE ASHBY APARTMENTS
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PROPERTY OVERVIEW
P R O P E RT Y D E S C R I P T I O N
U N I T M I X
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Address 808 South Hobart Boulevard, Los Angles CA 90005
APN 5093-017-031
Number of Units 49
Number of Stories 5
Year Built 1930
Building SF 36,925 SF
Lot Size 17,250 SF
Utilities Owner pays for trash, gas and water. Tenants pay for electricity and internet (Spectrum).
Capital Improvements 37 Units Have Been Fully Renovated Full Renovation of Common Areas & Exterior
P R O PE RT Y D E S C R I P T I O N
Studio/ 1 BA (80%)
1 Br / 1 BA (20%)
39 UNITS
10 UNITS
Unit Mix
(Avg. Current Rent $1,322)(Avg. Pro Forma Rent $1,595)
(Avg. Current Rent $1,753)(Avg. Pro Forma Rent $1,895)
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MARKETOVERVIEW
LO C AT I O N O V E R V I E W
M A R K E T R E S E A R C H
D E M O G R A P H I C S
K O R E AT O W N D E V E LO P M E N T S
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KOREATOWNmulticultural + dynamic + vibrant
Koreatown, located west of Downtown L.A. and south of Hollywood, is one of the most diverse neighborhoods in Los Angeles. Encompassing roughly three square miles, the area was once the epicenter of Golden Age Hollywood, home to the Ambassador Hotel, the Coconut Grove and the Brown Derby. Today, Korean and Latino populations contribute to Koreatown’s rich cultural diversity. Koreatown is also known for having one of the largest concentrations of nightclubs and 24-hour businesses and restaurants in the country. The community is the most densely populated area in Los Angeles County, with over 42,600 residents per square mile and the third highest population density in the United States, outranked only by Midtown Manhattan and Chicago’s North Side neighborhoods. Development in the area is at a frenzied pace, with many looking to capitalize on one of Los Angeles’ most unique, multicultural, dynamic and vibrant areas.
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TRANSIT & PEDESTRIAN FRIENDLY
75“ G O O D T R A N S I T ”
M a n y N e a r b y P u b l i c Tr a n s p o r t a t i o n o p t i o n s
TRANSIT SCORE
POPULAR DESTINATIONS WITHIN 4 MILES
Paramount Pictures Studio Tour 2.8 miles
The Wiltern 0.5 miles
LA Live 2.9 miles
Wilshire Country Club 2.7 miles
Silver Lake 3.7 miles
Downtown LA 4.2 miles
LACMA 3.6 miles
La Brea Tar Pits 3.2 miles
The Grove 3.8 miles
Hollywood & Highland 5.5 miles
96“ V E R Y WA L K A B L E ”
M o s t E r r a n d s C a n B e A c c o m p l i s h e d o n Fo o t
WALK SCORE
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POPULAR DESTINATIONS WITHIN 4 MILES
BEVERLYHILLS
6 .2 M iles
LAXAIRPORT
18 .3 M iles
HOLLYWOOD3.8 M iles
DOWNTOWNL.A .
4 .0 M iles
UNIVERSALC ITY
8 .5 M iles
D ISNEYLAND37.6 M iles
PROXIMITY TO LOS ANGELES ATTRACTIONS
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649,527To t a l P o p u l a t i o n W i t h i n 3 M i l e R a d i u s
GENDER
50.64%
49.36%
$63,773Average Household Income wi th in
3 M i l e Radius
$506,355Median Hous ing Value wi th in
3 M i l e Radius
237,713To t a l H o u s e h o l d s i n 3 M i l e R a d i u s
6.35% From 2010
D E M O G RA P H I C S
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POPULATION 1 Mi le 3 Mi les 5 Mi les
2023 ProjectionTotal Population 115,483 653,480 1,275,917
2018 EstimateTotal Population 114,916 649,527 1,267,944
2010 CensusTotal Population 109,845 618,631 1,204,408
2000 CensusTotal Population 118,326 633,965 1,208,429
Daytime Population2018 Estimate 92,825 634,452 1,334,078
HOUSEHOLDS 1 Mi le 3 Mi les 5 Mi les
2023 ProjectionTotal Households 46,032 244,326 500,052
2018 EstimateTotal Households 45,098 237,713 486,448
2010 CensusTotal Households 42,678 223,520 454,912
2000 CensusTotal Households 42,378 215,777 439,986
Growth 2000-2010 0.71% 3.59% 3.39%
HOUSING UNITS 1 Mi le 3 Mi les 5 Mi les
Occupied Units2018 Estimate 47,408 249,031 508,971Owner Occupied 3,710 32,858 96,514Renter Occupied 41,388 204,856 389,934Vacant 2,310 11,318 22,524
HOUSEHOLDS BY INCOME 1 Mi le 3 Mi les 5 Mi les
2018 Estimate $200,000 or More 2.01% 3.97% 5.71%$150,000 - $199,999 2.04% 3.16% 4.17%$100,000 - $149,999 6.56% 8.24% 10.27%$75,000 - $99,999 7.94% 8.89% 9.72%$50,000 - $74,999 17.08% 15.62% 15.59%$35,000 - $49,999 17.13% 13.82% 12.48%$25,000 - $34,999 13.73% 11.98% 10.41%$15,000 - $24,999 16.66% 15.31% 13.13%$10,000 - $14,999 7.95% 8.97% 8.59%Under $9,999 8.90% 10.04% 9.92%
Average Household Income $53,654 $63,773 $74,610Median Household Income $36,951 $38,548 $43,935Per Capita Income $21,188 $23,836 $29,231
POPULATION PROFILE 1 Mi le 3 Mi les 5 Mi les
Population By Age 2018 Estimate Total Population 21.2% 22.7% 21.6%Under 20 27.9% 29.3% 28.3%20 to 34 Years 8.8% 8.1% 8.3%35 to 39 Years 14.8% 13.7% 14.2%40 to 49 Years 16.9% 16.1% 16.4%50 to 64 Years 10.4% 10.2% 11.1%Age 65+ 16.1% 16.2% 14.0%Median Age 35.5 33.9 35.0
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7-STORY BUILDING228 RESIDENTIAL UNITS
17,000 SF GROUND FLOOR RETAIL340 PARKING SPACES
3980 WILSHIRE BLVD
PROPERTY DEVELOPER
INTERSECTION OF 8TH AND BERENDO STREET Jamison Services, Inc.
8TH ST AND HARVARD BOULEVARD Jamison Services, Inc.
THE HEIGHTS - SOUTH MANHATTAN PL & OLYMPIC BLVD Bastion Development Corporation
SOUL - 550 SHATTO PLACE Townline and Forme Development
VERMONT CORRIDOR - 6TH STREET AND VERMONT AVENUE LA County & Trammell Crow Company
631 VERMONT AVENUE Jia Long USA
3800 WEST 6TH STREET Leo Lee
3980 WILSHIRE BOULEVARD Combined Properties & Aecom Capital
2900 WILSHIRE BOULEVARD Jamison Services, Inc.
KOREATOWN DEVELOPMENTS
TWO 7-STORY BUILDINGS209 RESIDENTIAL UNITS
3,300 SF RETAIL
THE HEIGHTS
21-STORY TOWER122 PRIVATE RESIDENCES
192-ROOM HYATT CENTRIC HOTEL14,500 SF COMMERCIAL SPACE
6-STORY BUILDING131 RESIDENTIAL UNITS
7,000 SF RETAIL
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7-STORY BUILDING98 RESIDENTIAL UNITS
3,500 SF RETAIL & PARKING
8TH AND BERENDO STREET
21-STORY TOWER122 PRIVATE RESIDENCES
192-ROOM HYATT CENTRIC HOTEL14,500 SF COMMERCIAL SPACE
3800 WEST 6TH STREET
6-STORY BUILDING131 RESIDENTIAL UNITS
7,000 SF RETAIL
8TH ST AND HARVARD BLVD
A 20-STORY OFFICE TOWER Will serve as the new headquarters of the
Los Angeles County Department of Mental Health.
VERMONT CORRIDOR
33-STORY BUILDING250 PRIVATE RESIDENCES
200 HOTEL ROOMS16,000 SF RETAIL OFFICE SPACE
PARKING GARAGE & RETAIL
631 VERMONT AVENUE
25-STORY BUILDING644 RESIDENCES
15,000 SF RETAIL SPACE
2900 WILSHIRE BOULEVARD
32-STORY TOWER256 RESIDENTIAL UNITS
2,500 SF RETAIL
SOUL - SHATTO
FINANCIALSUMMARY
R E N T R O L L
P R I C I N G A N A LY S I S
O P E R AT I N G D ATA
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UNIT # UNIT TYPE CURRENT PRO FORMA
101 1 bedroom / 1 bathroom * VACANT $2,095 $2,095
102 Studio / 1 bathroom $1,425 $1,750
103 Studio / 1 bathroom $1,495 $1,750
104 1 bedroom / 1 bathroom $1,804 $2,095
105 Studio / 1 bathroom $1,217 $1,750
106 Studio / 1 bathroom $786 $1,750
107 Studio / 1 bathroom $1,332 $1,750
108 Studio / 1 bathroom $1,450 $1,750
109 Studio / 1 bathroom $1,395 $1,750
201 1 bedroom / 1 bathroom $1,763 $2,095
202 Studio / 1 bathroom $1,495 $1,750
203 Studio / 1 bathroom $1,450 $1,750
204 1 bedroom / 1 bathroom $860 $2,095
205 Studio / 1 bathroom * Manager $1,750 $1,750
206 Studio / 1 bathroom $834 $1,750
207 Studio / 1 bathroom $1,193 $1,750
208 Studio / 1 bathroom $863 $1,750
209 Studio / 1 bathroom $1,550 $1,750
210 Studio / 1 bathroom $1,495 $1,750
301 1 bedroom / 1 bathroom * Vacant $2,095 $2,095
302 Studio / 1 bathroom $1,325 $1,750
303 Studio / 1 bathroom $1,395 $1,750
304 1 bedroom / 1 bathroom $1,850 $2,095
305 Studio / 1 bathroom $867 $1,750
306 Studio / 1 bathroom $1,395 $1,750
307 Studio / 1 bathroom $1,550 $1,750
R E N T R O L L
UNIT # UNIT TYPE CURRENT PRO FORMA
308 Studio / 1 bathroom $1,395 $1,750
309 Studio / 1 bathroom $806 $1,750
310 Studio / 1 bathroom $1,395 $1,750
401 1 bedroom / 1 bathroom $1,907 $2,095
402 Studio / 1 bathroom $1,530 $1,750
403 Studio / 1 bathroom $1,495 $1,750
404 1 bedroom / 1 bathroom $1,796 $2,095
405 Studio / 1 bathroom $1,495 $1,750
406 Studio / 1 bathroom $1,495 $1,750
407 Studio / 1 bathroom $1,400 $1,750
408 Studio / 1 bathroom $1,495 $1,750
409 Studio / 1 bathroom $1,303 $1,750
410 Studio / 1 bathroom $1,437 $1,750
501 1 bedroom / 1 bathroom $1,895 $2,095
502 Studio / 1 bathroom * VACANT $1,750 $1,750
503 Studio / 1 bathroom $1,595 $1,750
504 1 bedroom / 1 bathroom $1,867 $2,095
505 Studio / 1 bathroom $1,550 $1,750
506 Studio / 1 bathroom $1,395 $1,750
507 Studio / 1 bathroom $1,450 $1,750
508 Studio / 1 bathroom $1,595 $1,750
509 Studio / 1 bathroom $1,386 $1,750
510 Studio / 1 bathroom $1,240 $1,750
3 TOTAL - VACANT $5,940 $3,150
46 TOTAL - OCCUPIED $65,461 $89,200
49 TOTAL $71,401 $89,200
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INCOME CURRENT PRO FORMA
Gross Scheduled Rent $856,812 $1,070,400
Loss/Gain to Lease $213,588
Vacancy $25,704 $32,112
EFFECTIVE RENTAL INCOME $831,108 $1,038,288
Laundry Income $3,954 $3,954
Other Income $41,541 $41,541
EFFECTIVE GROSS INCOME $876,603 $1,083,783
EXPENSES CURRENT PRO FORMA
Real Estate Taxes * Mills Act $75,980 $75,980
Insurance $18,810 $18,810
Utilities (Includes Sewer) $45,128 $45,128
Repairs & Maintenance $33,774 $33,774
Landscaping $2,060 $2,060
Alarm Service $2,160 $2,160
On-site Manager $25,140 $25,140
General & Administrative $7,000 $7,000
Maintenance Employee $12,000 $12,000
Licenses & Permits $1,320 $1,320
SCEP Fees $3,323 $3,323
Elevator $6,000 $6,000
Pest Control $1,200 $1,200
Reserves $7,350 $7,350
Management Fee $29,089 $36,340
TOTAL EXPENSES $270,334 $277,585
Per Unit $5,517 $5,665
Per SF $6.77 $6.95
Percent of EGI 30.84% 25.61%
NET OPERATING INCOME $606,269 $806,198
P R I C I N G A N A LYS I S & O P E RAT I N G DATA
Price $14,950,000
Number of Units 49
Price/Unit $305,102
Gross SF 39,925
Price/SF $374.45
CAP Rate - Current 4.06%
CAP Rate - Pro Forma 5.39%
GRM - Current 17.45
GRM - Pro Forma 13.97
Year Built 1930
Lot Size 17,250
Type of Ownership Fee Simple
*The City of Los Angeles has granted the property a Mills Act contract which will lower the property taxes in perpetuity in exchange for the upkeep and maintenance of this property.
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RICHARD RINGERSenior Managing Director Investments
Senior Director, National Housing GroupDirect | 310.909.5428
[email protected]: CA 01494512
JEFFREY BENSONSenior Vice President Investments
Director, National Multi Housing GroupDirect | 310.909.5420
[email protected]: CA 01327285
MARCUS & MILLICHAPWest Los Angeles
12100 West Olympic BoulevardSuite 350
Los Angeles, CA 90064Main | 310.909.5500
Presented by:
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