3517 Marathon Street

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3517 Marathon Street 3517 MARATHON STREET EXCLUSIVELY LISTED BY: RICH JOHNS 10-UNIT INVESTMENT OPPORTUNITY IN SILVER LAKE Multifamily Advisor T 818.432.1575 1 [email protected] EXCLUSIVELY LISTED BY: RICH JOHNS Multifamily Advisor 818.432.1575 [email protected] CalBRE Lic. #01432215 CONFIDENTIALITY AGREEMENT All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial 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 to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written 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 these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party 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 inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data 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 or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market condi- tions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Studio City in compliance with all applicable fair housing 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 or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own 2 investigation of the property and transaction 04 EXECUTIVE SUMMARY 16 LOCATION OVERVIEW 23 FINANCIAL ANALYSIS 26 RENT COMPARABLES 3 3 EXECUTIVE SUMMARY THE OFFERING KW Commercial is pleased to present 3517 Marathon Street, a vintage 10-unit investment opportunity located in Silver Lake (90026), in the Hollywood / Silver Lake submarket. Current ownership has created a proven concept through interior unit and common area renovations that has helped the asset achieve strong market rental income metrics along with a quality common area renovation of public space, thus creating a sought-after destination for area residents. The property, sited on a prominent view parcel, offers investors a unique and rare opportunity to immediately experience strong and stable income upon acquisition The unit composition features Two (2) One Bedroom-One Bathroom and Eight (8) Large Single-One Bathroom apartment homes. Seven of Ten units (70% of units) have undergone a major gut-level renovation which has included a variety of comprehensive upgrades that include expanding doorways and openings, new stylized baths and kitchens with matching dishwashers, refrigerators and stoves package, new gleaming wood floor installations, new doors, lighting, locks, hardware and designer finishes. Most units feature dramatic Downtown city views. The asset, built in 1928, has undergone a systematic renovation to the common spaces highlighted by drought resistant landscaping, new tile and paint finishes in the public spaces, secured entry and a new exterior color palette. Building upgrades include much of the plumbing converted to copper lines, installation of common area laundry facilities (owned equipment) and new electrical panel separating the electrical utilities individually. The gas utilities are master metered. Centrally located in Silver Lake, just south of Sunset Boulevard, 3517 Marathon Street is poised to capitalize on the tremendous momentum in the Hollywood-Silver Lake submarket. Furthermore, the subject property’s transit-oriented and highly walkable location offers residents access to myriad entertainment venues, cultural destinations, and dining options nearby. Given the property’s location and strong income metrics, 3517 Marathon Street is an ideal investment for apartment operators seeking immediate returns along with long term wealth preservation and appreciation. 5 6 7 I N vestme N T H I G HL I G ts THE OPPORTUNITY: 3517 Marathon Street is a 10-unit investment opportunity located in Silver Lake, a densely populated rental submarket of Los Angeles known for STRONG EMPLOYMENT: Hollywood-Silver Lake excellent rent growth and low vacancy rates. submarket is one of the strongest employment centers in the Los Angeles MSA and offers access to a diverse set of employers. IMMEDIATE RETURNS: The asset has undergone a systematic renovation to much of the common areas and 7 of 10 apartment interiors which are now achieving near LACK OF HOUSING AFFORDABILITY: There is a market rents thus facilitating strong and stable investor significant affordability gap to home ownership in the returns along with future upside potential. Hollywood-Silver Lake submarket. As the median home price in the area is approximately $1.5m, a typical WELL LOCATED: The property is located in the heart of monthly mortgage payment is approx. 1 1/2 times more Silver Lake just south of Sunset Boulevard on Marathon than the average renovated rents at 3517 Marathon Street. Street and approx. ½ mile from Sunset Junction and the many retail and entertainment venues such as Intelligentsia, Mohawk General Store, Cafe Stella and Forage. Walk in the NO SEISMIC RETROFIT REQUIRED: 3517 Marathon other direction and you’re right by Squirl and Twig & Twine. Street is not on the list of buildings that require a seismic There are endless dining and shopping options within retrofit. walking distance and within minutes, a short drive puts you LOCATED NEAR NEW COMMERCIAL DEVELOPMENTS: in Los Feliz and Echo Park. More than 2.3 million SF of commercial space is currently GREAT WALKABILITY: With a 77 Walk Score, 3517 under development in the Hollywood-Silver Lake submarket Marathon Street is a “Very Walkable” - Most errands can representing more than $1.58B in project costs, it is estimated that be accomplished on foot. nearly 6,500 new jobs will be created in Hollywood alone. EXCEPTIONAL FINANCING / LOAN OPTIONS: Historically low interest rates and attractive financing options with as little as 30% down payment possible. TRANSIT ORIENTED: 3517 Marathon Street is located approx. a 1/2 mile from Sunset Junction in Silver Lake. Residents are within a short walk of the Metro Red Line 8 which currently provides service to Downtown Los Angeles. 9 INTERIOR SPACES 10 10 11 12 EXTERIOR SPACES 13 13 14 Property Mechanics Address: 3517 Marathon Street Assessor’s Parcel Number: 5427-020-014 Buildings: One Year Built: 1928 Land Use: Apartments Zoning: LARD2 Stories: Two SITE DESCRIPTION Units: 10 Gross Square Footage: 6,200 Lot Size Square Footage: 5,196 UTILITIES Electric: Separately Metered - LADWP Gas: Master Metered CONSTRUCTION Foundation: Raised Foundation Framing: Wood Frame Exterior: Stucco Roof: Flat 15 LOCATION OVERVIEW 16 One of a Kind... SILVER LAKE Somewhere between the seediness of the strip and the sparkle of West Hollywood you’ll find a thriving metropolis of creative, chilled-out cool. If you want to see a little soul in the City of An- gels, step away from the vegan juice bars of Sunset Boulevard, ride east in an Uber and stop when you see the sign above. The Junction culminates into the semi-gentried Silverlake neigh- borhood around Sunset Junction, about six kilometers
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