EXCLUSIVE C-2 ZONED LAND OFFFERING- 100% VACANT 1934SantaYnezSt.com
1934 Santa Ynez St, Los Angeles CA 90026 Offering Price: $1,295,000
MVP CalBRE 02004120 Jonathan Prakash Derrick Vartanian Executive Managing Director, Partner Executive Managing Director, Partner 310.301.2351 | [email protected] 310.301.2353 | [email protected] In Association with KW Commercial CalBRE: #01483131 CalBRE: #01816119
TABLE OF CONTENTS
In Association with KW Commercial
OFFERING MEMORANDUM 1934 Santa Ynez St, Los Angeles CA 90026
1. EXECUTIVE SUMMARY THE OFFERING & SUMMARY OF TERMS 6-7 C2 ZONING USES 8 2. FINANCIAL ANALYSIS FINANCIAL SUMMARY & RENT ROLL 10-11 3. MARKET ANALYSIS RENT SURVEY 12-13 4. MARKET OVERVIEW CITY OF LOS ANGELES & GEOGRAPHY 14-15 SUBMARKET / DODGER STADIUM 16-17 NOTABLE LANDMARKS 18-19 ECHO PARK LAKE 20 GREATER LOS ANGELES AREA 21 DEMOGRAPHICS 22 MAJOR EMPLOYERS 23 RETAIL CENTERS 24 COLLEGES & UNIVERSITIES 25 HEALTH CARE CENTERS 26 PARKS AND RECREATION 27
CalBRE 02004120
MVP Commercial 3 1934 Santa Ynez St, Los Angeles, Ca 90026 4 1934 Santa Ynez St Los Angeles CA 90026
Alvarado St
MVP Commercial 5 EXECUTIVE SUMMARY
THE OFFERING SUBJECT PROPERTY : 1934 Santa Ynez St, Los Angeles, CA 90026
MVP Commercial Investment Real Estate of KW Commercial is pleased to present 1934 Santa Ynez Street. The property encompasses a 4,998 SF lot zoned C2. At the moment there is a four (4) unit Multifamily Investment property on the parcel which is CURRENTLY 100% VACANT. The current vacancies allow for an investor to immediately eliminate relocation costs of tenants.
The property is zoned C2 which offers present and future potential for development of a myriad of projects ranging from Multifamily, Condos, Mixed-Use, and Retail along with several different use codes including but not limited to Business, Education, Community, INVESTMENT HIGHLIGHTS Entertainment, Medical, etc. (Buyer to Verify). The C2 zoning allows • 100% VACANT! No Relocation Expense Necessary for a developer to build up 12 units by right, and potentially more • C2 Zoning Use Codes: Business, Education, Community, with low-income housing density bonuses (Buyer to Verify). An Entertainment, Medical, etc (Buyer to Verify) investor would have the ability to take advantage of of this great • Zoned C2 | Develop 12 Units (By Right, Buyer to Verify) zoning making 1934 Santa Ynez Street a unique opportunity in a • Priced at $259.10 per Lot SF neighborhood with a very high population density in the famed Echo • Incredible Value-Add Opportunity Park area. LOCATION HIGHLIGHTS With exceptional location in Echo Park, a very densely populated • High Rental Demand Area area of Los Angeles, a strategic investor will find great value for • Just Minutes Away from Dodger Stadium and Downtown Los land situated just blocks from Sunset Blvd and Echo Park Lake. Angeles The new owner also benefits from a short commute to Downtown • Prime Echo Park Location just 2 blocks from Echo Park Lake and Los Angeles and Dodger Stadium. Sunset Blvd. • Easy Access to the 101 and the 110 Freeway
1934 Santa Ynez St, Los Angeles, Ca 90026 6 EXECUTIVE SUMMARY
SUMMARY OF TERMS PARCEL MAP
1934 Santa Ynez St, Los Angeles CA 90026 APN: 5404-007-005
Price $1,295,000
Proforma #1 CAP: 6.81%
Proforma #2 CAP: 7.53%
Price/Unit $323,750
Price/Gross SF: $443.49
Proforma #1 GRM 10.79
Proforma #2 GRM 9.99
Units 4
Number of Stories 2
Year Built 1911
Building Size 2,920 SF
Lot Size 4,998 SF 1934 Santa Ynez St. is located just South of Sunset Blvd. and Alvarado St., and just West of Echo Park Lake. Zoning LAC-2
Parking Spaces Street Parking
MVP Commercial 7 EXECUTIVE SUMMARY
C2 ZONING USES Medical Educational Business • Acupuncturist’s Office • Beauty College • Antique Shop • Motorycycle Sales • Clinic • Dance Studio • Architect’s Office • Office • Cosmetological Establishment • Drama School • Automobile Parking • Parking Building • Counseling Facility • Childcare Facility • Automobile Sales • Pet Store • Dental Clinic • Educational Institution • Bakery • Repair Shop • Doctors Office • Library • Barber Shop • Restaurant • Massage Parlor • Music School • Beauty Shop • Shared Office Space • Optician • Private School • Bicycle Sales • Skating Rink • Pharmacy • Tutoring Center • Blueprinting • Spa • Café • Sporting Goods Store Entertainment Community • Candy Store • Tanning Salon • Advertising Studio • Affordable Housing • Car Rental • Travel Agency • Animated Cartoon Studio • Bank • Clothing Store • Yoga Studio • Aquarium • Charitable Institution • Furniture Store • Art Gallery • Community Center • Hotel • Book Store • Cultural Center • Jewelry Store • Broadcasting Studio • Eldercare Facility • Laundromat • Club • Financial Institution • Lodge • Film Studio • Fish Market • Manicure parlor • Gift Shop • House Of Worship Source: Http://Planning.lacity.org/Documents/Oza/15-2348Combined.pdf • Museum • Orphanage • Music Store • Park/Playground (Buyer to Verify) • Music Studio • Recreation Center • Production Studio • Religious Association • Recording Studio • Shelter • Theater • Wedding Chapel • Veterinary Clinic
1934 Santa Ynez St, Los Angeles, Ca 90026 8 ECHO PARK LAKE LOTUS BED
MVP Commercial 9 FINANCIAL SUMMARY 1934 Santa Ynez St, Los Angeles CA 90026
PRICING ESTIMATED ANNUALIZED EXPENSES
Price $1,295,000 *Taxes: Rate Rate 1.250% $16,188
Down Payment 100% 1,295,000 *Insurance $1,314
Number of Units 4 *Utilities $2,880
Cost per Legal Unit $323,750 *Maintenance/Repair $5,400
Proforma #1 GRM 10.79 *Reserves 1.0% $1,200
Proforma #2 GRM 9.99 *Gardening $1,188
Proforma #1 CAP 6.81%
Proforma #2 CAP 7.53%
Approximate Age 1911
Approximate Lot Size 4,998 SF
Approximate Building Sqft 2,920 SF *Estimated Expenses*
Cost per Net GSF $443.49 **Seller Stated Expenses**
Total Expenses $28,170
Per Net Sqft $9.65
Per Unit $7,042.38
ANNUALIZED OPERATING DATA SCHEDULED INCOME
Proforma #1 Proforma #2 Proforma #1 Proforma #2
Scheduled Gross Income $120,000 $129,600 No. of Units Bed/Bath Approx. Sqft Rent/Unit Income Rent/Unit Income
Less Vacancy Rate Reserve ($3,600) 3.0% ($3,888) 3.0% 4 1+1 $2,500 $10,000 $2,700 $10,800
Gross Operating Income $116,400 $125,712
Less Expenses ($28,170) 23.5% ($28,170) 21.7%
Net Operating Income $88,231 $97,543
Less Loan Payments - -
Pre-Tax Cash Flow $88,231 6.8%* $97,543 7.5%* Average Rent/Gr. Sqft $3.42 $3.70
Plus Principal Reduction - - Total Scheduled Rent $10,000 $10,800
Total Return Before Taxes $88,231 6.8%* $97,543 7.5%*
Monthly Schedule Gross Income $10,000 $10,800
Annual Scheduled Gross Income $120,000 $129,600
Utilities Paid by Tenant Gas & Electricity
1934 Santa Ynez St, Los Angeles, Ca 90026 10 RENT ROLL
UNIT NO. MIX PROFORMA #1 NOTES PROFORMA #2
1934 1+1 $2,500.00 Vacant $2,700.00
1934 1/2 1+1 $2,500.00 Vacant, Small Bonus Room $2,700.00
1936 1/2 1+1 $2,500.00 Vacant, Small Bonus Room $2,700.00
1936 1+1 $2,500.00 Vacant $2,700.00
***Brokers do not represent the accuracy of any of this information. Buyer to conduct own investigation of all information provided.***
Monthly Rent $10,000 $10,800
Yearly Gross Income $120,000 $129,600
MVP Commercial 11 RENT SURVEY
$2,700 - 1441 Echo Park Ave
$3,100 - 840 N Coronado St $3,000-$3,200 - 1030 N Alvarado St
SUBJECT PROPERTY
$2,500 to $2,680 - 1932 Clinton St $2,200 - 1908 Clinton St
$2,900 - 1441 Carroll Ave $2,375 - 817 E Edgeware Rd
1934 Santa Ynez St, Los Angeles, Ca 90026 12 RENT SURVEYSURVEY
ADDRESS RENTS
1 Bedroom / 1 Bathroom
817 E Edgeware Rd. Los Angeles, CA 90026 $2,375
1908 Clinton St. Los Angeles, CA 90026 $2,200
1932 Clinton St. Los Angeles, CA 90026 $2,500-$2,680
1441 Carroll Ave. Los Angeles, CA 90026 $2,900
1441 Echo Park Ave. Los Angeles, CA 90026 $2,700
1030 N Alvarado St. Los Angeles, CA 90026 $3,000 - $3,200
840 N Coronado St. Los Angeles, CA 90026 $3,100
MVP Commercial 13 LOCATION OVERVIEW
CITY OF LOS ANGELES
Location Highlights
• In 2015, leisure and hospitality is the leading industry with 488,100 jobs in Los Angeles. In the same year, this sector added 21,500 jobs which represents 4.6% job growth year after year. • The largest number of manufacturing jobs of any county in the country. • Other major industries include health care, education, and business services. • L.A.’s coastal regions boast some of the best surf spots, amazing oceanfront dining and trendy shops. • Los Angeles has more museums and theatres than any other Los Angeles, the second largest city in the United States, is located city in the United States. Los Angeles has 105 museums and in southern California and is situated in the county of Los Angeles. 225 theatres making it the mecca of arts and culture. This city is known for its sunny climate, sprawling city life, and considered • With its rich cultural diversity, Los Angeles has the most to be the center of the entertainment capital of the world. dynamic dining experiences a city has to offer. Each region
The city of Los Angeles leads its counterparts in several major growth of Los Angeles offers a variety of dining options without ever industries. LA county has more than 87,000 jobs in the fashion leaving the general area. industry surpassing New York city. In addition, Los Angeles houses Source: www.discoverlosangeles.com 700,000 jobs in health services/biomedical field and 190,000 jobs in the aero-space and technology field.
1934 Santa Ynez St, Los Angeles, Ca 90026 14 LOCATION OVERVIEW
GEOGRAPHY The city of Los Angeles, surrounded by the San Gabriel Mountain range and divided by the Santa Monica Mountains, is primarily a desert basin. This city has 75 miles of coastline and altitudes ranging from 9 feet below sea level at Wilmington to 10,080 feet above sea level at Mt. San Antonio. Los Angeles rivers include Rio Hondo, San Gabriel, Santa Clara and Los Angeles rivers.
City of Los Angeles: 472 square miles
County of Los Angeles: 4,084 square miles
Los Angeles Five-County Area: 34,135 square miles
Source: LACity.org, LACounty.org, California State Association of Counties counties.org
MVP Commercial 15 SUBMARKET
ECHO PARK
Surrounded by Downtown Los Angeles, Chinatown, Silver Lake and Elysian Park, Echo Park is a Los Angeles neighborhood filled with historic homes and a diverse population. Locals enjoy Dodger Stadium, Echo Park Lake, eclectic shopping and various cultural dining. North of Sunset Boulevard, property Source: nytimes.com and cnn.com values are increasing due to development and gentrification.
1934 Santa Ynez St, Los Angeles, Ca 90026 16 DODGER STADIUM
Dodger Stadium, 1000 Vin Scully Avenue, Los Angeles CA 90012 Located in the Elysian Park Neighborhood of Los Angeles, Dodger Stadium opened on April 10, 1962.
MVP Commercial 17 NOTABLE LANDMARKS
Madang Plaza Shopping Mall, 621Elysian S. Western Park Ave, Los Angeles CA 90005 Angelus Temple
Carroll Avenue Olvera Street
1934 Santa Ynez St, Los Angeles, Ca 90026 18 Madang Plaza Shopping Mall,Downtown 621 S. WesternChinatown Ave, Los Angeles CA 90005 Union Station
The Cathedral of Our Angels Elysian Park Arboretum
MVP Commercial 19 ECHO PARK LAKE
Echo Park Lake, 751 Echo Park Ave, Los Angeles, CA 90026 13-acres urban lake surrounded by 16-acres of recreational space located in Echo Park and Silver Lake neighborhood.
1934 Santa Ynez St, Los Angeles, Ca 90026 20 THE GREATER LOS ANGELES AREA
DOWNTOWN LOS ANGELES HOLLYWOOD SANTA MONICA
Downtown Los Angeles, a large city with Known for its glitz and glam, Hollywood is Renowned for its sunny skies and beaches, an abundance of historic architecture home to film, television and music industries. Santa Monica attracts more than 7 million and cultural attractions, offers incredible Although most studios have moved to visitors a year. This one of a kind city restaurants, hotels with amazing views and neighboring cities, Hollywood still attracts averages more than 300 days of sunshine a a thriving nightlife. In the South Park District millions of visitors each year. Hollywood and year and has some of the best sunsets on of Downtown Los Angeles is L.A. Live, an Highland Center, in the heart of Hollywood, is the west coast. Santa Monica has become entertainment complex, that host popular one of the hottest entertainment centers in a walkable and bike-friendly town allowing attractions like the GRAMMY Museum, Los Angeles. Hollywood is ethnically diverse, easy access to shopping, restaurants and Lucky Strick Lanes and Regal Cinemas. In heavily populated and offers delicious attractions such as the Santa Monica Pier addition, STAPLES Center, adjacent to the multicultural cuisines. and Third Street Promenade. L.A. Live, is home to the Los Angeles Lakers, Clippers, Kings and Sparks.
MVP Commercial 21 DEMOGRAPHICS
POPULATION (2015) ETHNICITY
City of Los Angeles: 4.0 Million Hispanic or Latino (of any race) 47.9%
County of Los Angeles: 10.1 Million Non-Hispanic Whites: 27.5%
Los Angeles Five-County Area: 18.6 Million Asian/Pacific Islander: 13.7%
Source: California Department of Finance, Demographic Research Visit African-American: 8.1%
INCOME American Indian/Others: 2.8%
Median household income: $48,610 “The diverse, multiethnic population of Los Angeles today distinguishes the city as the cultural hub of the Pacific Rim. Mean household income $76,557 People from more than 180 countries, speaking 140 different identified languages, currently call Los Angeles home. Los Median family income: $53,008 Angeles does not have a majority population.” - www.discoverlosangeles.com Mean family income: $83,965
Source: U.S. Census Bureau - 2013 American Community Survey Median non-family income: $38,227
Mean non-family income: $61,155
Source: 2006-2008 American Community Survey
1934 Santa Ynez St, Los Angeles, Ca 90026 22 MAJOR EMPLOYERS
TOP 10 EMPLOYERS IN LOS ANGELES
County of Los Angeles 96,500
Los Angeles Unified School District 59,600
City of Los Angeles (including DWP) 46,900
University of California, Los Angeles 46,900
Federal Government (non-Defense Dept.) 43,400
Kaiser Permanente 36,000
State of California (non-education) 29,200
Northrop Grumman Corp. 17,000
Target Corp. 15,000
Providence Health & Services 15,000
Source: California Employment Development Department, The Los Angeles Business Journal, and Almanac research
MVP Commercial 23 RETAIL CENTERS IN THE GREATER LOS ANGELES AREA
RODEO DRIVE THE GROVE MELROSE AVE BEVERLY CENTER
Rodeo Drive is in the center of The Grove, an entertainment Melrose Avenue is famous for its Beverly Center, eight-story shopping the Golden Triangle. Some of the complex in Los Angeles, features underground and new wave retail mall located at the edge of Beverly most luxurious hotels, shopping brand name stores, chain and local stores which became popular in Hills and West Hollywood, provides and dining in the world occupy restaurants, a large center park with the 1980’s. This destination a shopping experience unlike its this distinguished corridor. The an animated fountain and Pacific attracts visitors from all over the counterparts in the local area. With most prestigious and recogniz- Theatres. Visitors can take a free world for its unique shopping over 100 specialty retail stores, able brands in fashion such as ride to The Grove Trolley which experience, spectacular dining, shoppers are able to get everything Valentino, Saint Laurent, Tiffany travels along First Street between and entertainment. they need in one location. Recently, & Co., Cartier, Rolex, Chanel and The Grove and Famer’s Market. the owners have unveiled their plans Salvatore Ferragamo are situat- to spend $500 million to renovate ed on Rodeo Drive. the Beverly Center.
1934 Santa Ynez St, Los Angeles, Ca 90026 24 COLLEGES & UNIVERSITIES
Los Angeles County is home to 113 accredited colleges and universities, including such prestigious institutions as the University of Southern California (USC), UCLA, Pepperdine University, Occidental College, Loyola Marymount University and the Art Center College of Design.
Source: LAEDC
University of Southern California University of California, Los Angeles
Pepperdine University Art Center College of Design
MVP Commercial 25 HEALTH CARE CENTERS
According to U.S. News, UCLA Medical Center, Cedars-Sinai Medical Center, Kesk Medical Center of USC and Kaiser Permante Los Angeles Medical Center are ranked in the top 20 hospitals in California.
UCLA Medical Center Cedars-Sinai Medical Center
Keck Medical Center of USC Kaiser Permanente LA Medical
1934 Santa Ynez St, Los Angeles, Ca 90026 26 PARKS AND RECREATION
Griffith Observatory Kenneth Hahn State Recreation Area
Spanning an impressive 4,210 acres, it’s easy to get lost in LA’s largest public Kenneth Hahn is impressive in both size and topography for a park in the green space, much of which remains unchanged from the days when Native middle of the Westside. Americans settled here.
Hancock Park La Brea Lake Hollywood Park
Explore the La Brea Tar Pits, which for over 100 years has unearthed Unlike the touristy turnout just up the road, this park stays quiet throughout the prehistoric fossils, and enjoy the Urban Light sculptures from LACMA which day. The whole family can enjoy the playground, shaded picnic benches and one is within a stone’s throw. of the most fantastic views of the Hollywood Sign.
MVP Commercial 27 1934 Santa Ynez St, Los Angeles, Ca 90026 28 CONFIDENTIAL DISCLAIMER
This Confidential Memorandum has been prepared by MVP Commercial Investment Real Estate (“MVP”) and is being furnished to you solely for the purpose of your review of the commercial property located at 1934 Santa Ynez St, Los Angeles CA 90026. The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of MVP Commercial Investment Real Estate and KW Commercial (“Broker”).
By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to MVP as soon as practicable together with all other materials relating to the Property which you may have received from MVP; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of MVP.
This Confidential Memorandum has been prepared by MVP, based upon certain information pertaining to the Property and any information obtained from MVP to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by MVP to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon MVP, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither MVP or KW Commercial, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred.
MVP, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice.
This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum, you agree to release MVP and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. MVP reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.
MVP Commercial 29 In Association with KW Commercial www.mvpcre.com
Jonathan Prakash Executive Managing Director, Partner 310.301.2351 | [email protected] CalBRE: #01483131
Derrick Vartanian Executive Managing Director, Partner 310.301.2353 | [email protected] CalBRE: #01816119
CalBRE 02004120