OFFERING MEMORANDUM | TEN-UNIT APARTMENT BUILDING | PRIME BRENTWOOD LOCATION 11667 GOSHEN AVENUE LOS ANGELES, CALIFORNIA 90049
$4,000,000 | $400,000 PER UNIT | $443 PER SQUARE FOOT CONTENTS
3 INVESTMENT SUMMARY 20 FINANCIAL ANALYSIS Copyright © 2018 Transwestern. California ▪▪ Investment Summary ▪▪ Offering Summary Brokerage License #01263636. The information ▪▪ Rent Roll in this offering memorandum was gathered 5 PROPERTY IMAGES ▪▪ Operating Statement Summary by Transwestern from sources believed ▪▪ Property Images reliable. Transwestern has not verified the 23 SALES AND RENT COMPARABLES 8 LOCATION OVERVIEW information and makes no guarantee, warranty ▪▪ Sales Comparables or representation about it. It is the potential ▪▪ Regional Map ▪▪ Sales Comparables Map buyer’s responsibility to independently confirm ▪▪ Neighborhood Map ▪▪ Rent Comparables its accuracy and completeness. Any projections, ▪▪ Aerial View Facing Los Angeles ▪▪ Rent Comparables Map opinions, assumptions or estimates used are for ▪▪ Aerial View Facing Santa Monica example only and do not represent the current ▪▪ Plat Map or future performance of the property. Potential ▪▪ Market Overview buyers and their advisors should conduct ▪▪ Brentwood Market Data and Demographics a careful, independent investigation of the ▪▪ Nearby Development Projects property to determine to their satisfaction the ▪▪ Nearby Development Projects Map suitability of the property for their needs. ▪▪ Major Employers and Places of Interest Map ▪▪ Silicon Beach ▪▪ Silicon Beach Map
PRESENTED BY JOHN SWARTZ JOSH KAPLAN TROY LUCERO TRANSWESTERN Senior Vice President Senior Vice President Analyst 601 S. Figueroa Street, Suite 2750 213.430.2526 213.430.2538 213.457.1656 Los Angeles, CA 90017 [email protected] [email protected] [email protected] 213.624.5700 CA License 01873487 CA License 01934177 CA License 02015705 transwestern.com/losangeles
2 INVESTMENT SUMMARY
Transwestern as the exclusive listing agent THE OPPORTUNITY ■ PROPERTY SUMMARY is pleased to present the opportunity ■ Soft-story seismic retrofit completed to acquire 11667 Goshen Avenue, Los ■■ Two units to be delivered vacant: Unit 1 (2br+2ba) and Unit 7 (1br+1ba) PROPERTY ADDRESS Angeles, California 90049, a ten (10) unit 11667 Goshen Avenue ■■ Value-add opportunity – current rents are Los Angeles, CA 90049 apartment building located in the heart of approximately 35% below market1 NUMBER OF UNITS Brentwood within a short walking distance ■■ All units have large and efficient floor plans Ten (10) total units from retail, dining and entertainment ■■ Excellent unit mix – six (6) 1bed+1bath and Six (6) 1bed + 1bath four (4) 2bed+2bath units on Wilshire Boulevard and San Vicente Four (4) 2bed + 2bath ■■ Ample on-site parking – thirteen (13) spaces Boulevard. YEAR BUILT - five (5) single spaces and four (4) tandem 1961 spaces BUILDING SIZE2 ■■ 10 storage units on site + 9,024 SF
PRICE: $4,000,000 LAND SIZE2 $443 PER SQUARE FOOT + 7,499 SF ZONING $400,000 PER UNIT R4-1 (Per zimas.lacity.org - Buyer to verify) 1 PARKING 17.4 CURRENT GRM Thirteen (13) total spaces Five (5) single spaces 1 3.50% CURRENT CAP RATE Four (4) tandem spaces
ASSESSOR PARCEL NUMBER 4265-003-002 1 Current GRM and Cap Rate assumes vacant Units 1 and 7 leased at projected rents. 2Source: TitlePro. Buyer to verify.
3 INVESTMENT SUMMARY
PROPERTY DESCRIPTION both replaced in 2016 and are owned by the cultural entertainment at the Getty or Geffen 11667 Goshen Avenue is a ten (10) unit landlord. The water heater was also replaced in Playhouse Theater in Westwood, and trips to apartment building constructed in 1961. The unit 2016. the Santa Monica beach less than five miles from their front door. Brentwood is also home to mix consists of six (6) large 1bed+1bath and four PROPERTY LOCATION (4) 2bed+2bath units. The property is a three- seven private schools, two public schools, and story 9,024 square foot walk-up building with a 11667 Goshen Avenue is located between the exclusive Brentwood Country Club. wood frame and stucco construction situated on Barrington and Barry Avenue, a short walking a 7,499-square foot lot. distance from Wilshire Boulevard, in the heart WALK SCORE BREAKDOWN of Brentwood. Brentwood is an affluent area in All of the units have very large floor plans that West Los Angeles. While the area is more widely DINING/DRINKING provide an investor the opportunity to complete known for its multi-million dollar mansions their own renovation plan and significantly at the base of the Santa Monica Mountains, GROCERIES increase rents. All units come with a wall air Brentwood also offers a charming walkable conditioner and most units come with a large urban village that is located a few blocks from SHOPPING glass sliding door in the living room. All units the subject property. The area offers a wide feature a dual vanity in the main bathroom. In array of convenient walkable neighborhood ERRANDS addition, all units feature additional closet space amenities including Whole Foods, Starbucks, in the living room, storage space in the hallway The Coffee Bean, CVS, Jamba Juice, SoulCycle, PARKS as well as a storage locker outside in the parking Fresh Brothers, Burger Lounge, SusieCakes, lot. Unit 10 is a penthouse 2bed+2bath unit Citibank, and Brentwood Gardens, an alfresco SCHOOLS featuring a second entrance/exit from a private shopping center which includes a variety of staircase as well as a large balcony off of the boutique, shops, and restaurants. Additionally, guest bedroom. ENTERTAINMENT there are numerous fine dining establishments Parking is provided on-site with thirteen (13) in the area including Katsuya, Sugarfish, Coral spaces comprised of five (5) single spaces and Tree Café, Toscana, Pecorino, Palmeri Ristorante, 0 100 four (4) tandem spaces. Five (5) of the single Pizzicotto, Gaucho Grill, and Bandera. On nights spaces are located at the rear of the building. and weekends, residents will be afforded a truly Each of the units are separately metered for gas complete, urban experience replete with hikes and electricity. Tenants are provided with one (1) in the Santa Monica Mountains, shopping and washer and one (1) dryer machine which were brunch on Montana Avenue in Santa Monica,
4 PROPERTY EXTERIOR IMAGES
5 PROPERTY INTERIOR IMAGES
6 PROPERTY INTERIOR IMAGES
7 N
B e v e r l y
G REGIONAL MAP l e n
B l v d
405
W S un se t B lv N d S B Burton Way B e v e e v r e ly r l D y r G l e n
B l 2 v d
11667 Goshen Ave
lvd r te B n D Vice an S l S d i lv d C S B lv w B r e c a d i o e v 2 p p c s l 6 d i v v u t l m P d
B T e l B l ly M h a v e v e ic O B l t S n e a W n 2 t o d n H B e 0 M a W c a n e W n i T nt i V a B n i h o e O g S l g n S v s s h a t d t v t A r S w e t r s o v e l e e a b o A n v d o d A v e R v d 2 B e A lv 6 l A r T v v o a B d t h e S n e o ta ir S h t M n s o il S 1 M W 10 B L 2 i 0 u n T n c d h o v d l S y d ln B t lv B a D l B c r a lv i d d n d n lv lv io d o B B at lv M c rk N d B a i a lv n t p P B to O n m n g a y a e n c S l e ic i e O c n sh a O Ve a n W A S v 405 S e e 10 C p e u n l t v i e n d e a l 8 e a B v A l A 187 v v d se e Ro NEIGHBORHOOD MAP
B M o 405 n a s c e a a v ll r A A 405 t g v h in e e u sh v L r r A o A e e r P y Av n v rant a e e G L n w e t D S e B v r lt A i u a n a n g n a h e t a h n m C o M A v e d Eisenhower Blv S Pl ire orham ilsh W G W e s tg a t e Blvd A nte r v ice H D e n V n Sa a le d w H l o vd a e D Bl d y nte l Vice e L San y n e C v t A a l n P a t S h n t o B r a o M r G w e ri v ra n s A g d n t v 11667 Goshen Ave a m i o a ll n rh e A W o A v G v e e e v e A v ld t A e S n fi o y y t a th g o in M r rl o a D D
S F e W d e e s r t a g l a A te v A e v e S e t v o A n a e w r B o e u S i A v t K e v A l v e e B A er r u n st A n e G he v d h r c e y s a o D o n B R 9 r G S v a i r C l r l y o e W e l v A b A e A y v v d A s e e A e l r t v ie m g ve v A f a A e io y a t s h a c e a O M o A x s e t v T A e v e AERIAL VIEW FACING DOWNTOWN LOS ANGELES
SAN VICENTE BLVD
GOSHEN AVE
10 AERIAL VIEW FACING SANTA MONICA
GOSHEN AVE
11 PLAT MAP
12 MARKET OVERVIEW
LOS ANGELES APARTMENT MARKET OVERVIEW and expected to be delivered between now and southwest, the border of Topanga State Park on In the first quarter 2018, the Los Angeles County year-end 2018. With Los Angeles now mostly the west and Mulholland Drive in the mountains apartment real estate market continued to see built-out, developers have looked more closely to the north. Due to its proximity to major high occupancy levels and strong year-over-year at apartment construction in infill neighborhoods points of interest such as UCLA, Malibu, and effective rent growth. REIS reported the County- with existing infrastructure and transit links to Santa Monica, as well as its walkable village feel, wide occupancy rate at 96.6%, down 10 basis the rest of the region. As a result, much of the Brentwood is considered by many to be one of points from year-end 2017. With the average apartment construction in Los Angeles County the most desirable neighborhoods to live in Los apartment rental rate now at $1,898 per month is concentrated in only a handful of submarkets: Angeles. As a result, it has some of the highest County-wide according to REIS, year-over-year Downtown Los Angeles, Hollywood, Koreatown, average household incomes in the region while rental rate growth has been 5.2% which is the Long Beach, and Warner Center. being home to seven private schools, two public second fastest growing on the West Coast, schools, and the exclusive Brentwood Country behind only Seattle. BRENTWOOD MARKET OVERVIEW Club. Located in West Los Angeles, Brentwood is an Los Angeles County saw a total of 6,164 affluent neighborhood bordered by the San apartment units delivered in 2017 with an Diego Freeway to the east, Wilshire Boulevard additional 11,755 units now under construction to the south, the Santa Monica city limits on the
BRENTWOOD BY THE NUMBERS
2017 POPULATION 2022 POPULATION MEDIAN AGE
229,500 (+2.0% since 2010) 237,760 (+3.6% est. over 2017) 42.3 years old
AVERAGE INCOME EDUCATION
$138,022 63% have bachelor’s or higher 13 BRENTWOOD DEMOGRAPHIC OVERVIEW 1 MILE RING 3 MILE RING 5 MILE RING BRENTWOOD MARKET DATA AND POPULATION SUMMARY # % # % # % 2022 Projection 46,845 237,760 541,424 DEMOGRAPHICS 2017 Estimate 44,901 229,500 522,479 2010 Census 43,464 225,066 511,412 SUBMARKET DATA Projected Growth 2017-2022 4.33% 3.60% 3.63% In the first quarter 2018, the Brentwood rental Estimated Growth 2010-2017 3.30% 1.97% 2.16% apartment market saw occupancy levels for Household Summary # % # % # % Class A properties decrease to 96.6%, down 2022 Projection 24,757 109,543 251,092 from 96.9% a year ago. Class B/C properties 2017 Estimate 23,706 105,319 241,721 saw their occupancy levels increase to 98.1%, up 2010 Census 22,922 102,883 236,023 from 97.7% a year ago. According to REIS, the Projected Growth 2017-2022 4.43% 4.01% 3.88% average monthly asking apartment rental rate in Estimated Growth 2010-2017 3.42% 2.37% 2.41% Brentwood for Class A buildings in the first quarter Ethnicity/Race Summary # % # % # % 2018 was $3,590 (up 8.2% year over year) while White 28,467 63.40% 147,119 64.10% 325,730 62.34% Class B/C buildings saw asking rents increase to Black 1,325 2.95% 6,253 2.72% 20,351 3.90% $2,392 (up 7.0% year over year). With Brentwood Asian 7,311 16.28% 38,317 16.70% 68,688 13.15% Hispanic 5,866 13.06% 27,561 12.01% 84,784 16.23% continuing to be seen as a high-barrier-to-entry Other 1,932 4.30% 10,249 4.47% 22,926 4.39% neighborhood near major employment clusters Education Summary # % # % # % on the Westside, expect apartment properties Less than 9th grade 847 2.54% 3,405 2.19% 12,947 3.52% to remain in high demand from both renters and Some High School, no diploma 1,067 3.20% 4,307 2.77% 11,744 3.19% investors for the foreseeable future. High School Graduate (or GED) 2,223 6.67% 13,153 8.45% 36,175 9.83% Some College, no degree 4,308 12.92% 21,791 14.00% 58,115 15.79% Associate Degree 1,559 4.68% 7,248 4.66% 18,951 5.15% Bachelor's Degree 14,164 42.49% 57,516 36.95% 129,931 35.30% Master's Degree 5,378 16.13% 26,258 16.87% 55,456 15.07% Professional School Degree 2,320 6.96% 14,106 9.06% 29,448 8.00% Doctorate Degree 1,469 4.41% 7,872 5.06% 15,289 4.15% Workplace & Income Summary # % # % # % Median Household Income $82,482 $86,301 $85,352 Average Household Income $116,606 $138,022 $137,506 All Employees 48,881 282,073 493,442 White Collar 18,685 38.40% 118,909 42.32% 197,543 40.20% Blue Collar 29,972 61.60% 162,069 57.68% 293,840 59.80% Median Employee Salary $48,686 $52,512 $50,270 Average Employee Salary $58,071 $61,950 $59,405 Daytime Population 69,587 498,399 854,652 14 NEARBY DEVELOPMENT PROJECTS
PICASSO BRENTWOOD LANDMARK APARTMENTS Under construction 6-story, 81-unit mixed-use Proposed 34-story, 376-unit apartment tower apartment project by Metropolitan Pacific on by Douglas Emmett replacing the long-vacant Wilshire Boulevard between Bundy Drive and Pavilions supermarket site on the southwest Brockton Avenue with 10,000 square feet of corner of Wilshire Boulevard and Granville ground-floor retail. Ave, consisting of 360 market rate units and 16 affordable units. MONTCLAIR Under construction 5-story, 49-unit apartment 11701 SANTA MONICA BLVD project at 11965-11979 Montana Ave by Proposed 5-story, 61-unit apartment project by Montana Bundy LLC consisting of 45 market rate Markwood Enterprises on the northwest corner PICASSO BRENTWOOD units and 4 affordable units. of Santa Monica Boulevard and Barrington Avenue consisting of 56 market rate units and 625 S BARRINGTON AVE 5 affordable units over 1,500 square feet of Under construction 4-story, 46-unit market-rate ground-floor retail space. apartment project by Nayssan Properties on Barrington Avenue between Chenault St and 12431 ROCHESTER AVE Terryhill Place. Proposed 5-story, 50-unit apartment project by Starkwood on the northeast corner of Santa MONTCLAIR THE SANREMO Monica Boulevard and Centinela Avenue Under construction 4-story, 34-unit market-rate consisting of 45 market rate units and 5 apartment project by The Roberts Companies affordable units. on Barrington Avenue between Sunset Boulevard and San Vicente Boulevard. 11407 SANTA MONICA BLVD Proposed 5-story, 51-unit apartment project 1330 S FEDERAL WAY by Wiseman Development on the northwest Proposed 2-story ,26-unit condo development corner of Santa Monica Boulevard and Purdue project by Woodbridge Properties LLC on Avenue consisting of 47 market rate units and 4 the northeast corner of Federal Avenue and affordable units over 1,500 square feet of ground Rochester Ave. floor retail space. LANDMARK APARTMENTS
15 NEARBY DEVELOPMENTS MAP