15901 S Vermont Ave, Gardena, CA
Offering Memorandum 15901 S VERMONT AVE GARDENA, CA 90247 ™ Exclusively Listed By NABIL AWADA DAVID HARRINGTON Associate - Multifamily EVP & National Director Direct +310 844 9362 Direct +310 295 1170 Mobile +310 469 2974 Mobile +310 497 5590 [email protected] [email protected] LIC#02046840 (CA) LIC#01320460 (CA) Offering Memorandum
15901 S VERMONT AVE GARDENA, CA 90247
Property04 Overview Location08 Overview Financial12 Overview
3 PROPERTY04 OVERVIEW
™ 15901 S VERMONT AVE 5 roperty Summary roperty P Number of Units: 16 of Units: Number 1962 Built: Year 6113-028-010 APN: 10,390 Ft.: Sq. Gross 649 Unit: Per S.F. Average 11,301 (Acres): Lot Size
16 Units + (1) Non-Conforming Studio Non-Conforming + (1) 16 Units Studio (4) Bathroom, Bedroom/One One (10) Bathroom, Bedroom/Two (2) Two Studio Non-Conforming and (1) parking along with ample street Garages Car One and (5) Garages Car Two (5) of 10,390 Footage Square Building Gross Feet of 11,301 Square Size Lot Laundry with two washers and two dryers room On-site and Retail Dining, to Shops, Walk Short and Freeways Parks, Accessible to Hospital, Easily pportunity O • • • • • • • • Property Description Property The property boasts a desirable unit mix of (2) Two Bedroom/Two Bathroom, (10) (10) Bathroom, Bedroom/Two (2) Two boasts a desirable unit mix of property The Unit. Studio Non-Conforming and (1) Studio, (4) Bathroom, Bedroom/One One ample street one car garages coupled with and (5) two car garages (5) are There An investor for gas and electricity. building is separately metered The parking. in this neighborhood by and high rents market can capitalize on the tight rental will upgrade the units plan, which renovation implementing a strategic unit interior at the higher end of Rents rents. of the market and allow the buyer to command top upside potential. in 23% rent the range result Matthews Real Estate Investment Services is proud to offer 15901 S Vermont Services S 15901 to offer is proud Investment Estate Real Matthews purchase to investor an for opportunity an is building apartment 16-unit This Avenue. part Northeastern on the Located of Gardena. heart in the a multifamily property boasts property The neighborhood. Hermosillo improving rapidly Gardena’s of continues area as the surrounding with continued long-term growth significant upside shops including to entertainment and retail the proximity appreciate Tenants to grow. 1 only Located and Starbucks. Cafe, Eatalian Vons, Center, Shopping Valley Gardena is easily accessible Freeway 110 The of Gardena. Hospital Memorial mile away from only a short drive south to 91 freeway. to commuters and Regional Map
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Local Map
N 15901 S VERMONT AVE 7 LOCATION08 OVERVIEW
™ 15901 S VERMONT AVE 9 4.18% 3.25% 3.99% 3.20% 231,932 774,677 743,614 799,881 223,041 239,357 5 MILE $54,876.62 $76,342.06 2.66% 2.66% 2.83% 2.94% 66,770 64,933 68,546 214,858 203,310 209,297 3 MILE $76,859.07 $57,020.74 2.21% 11,416 11,160 2.27% 2.29% 2.07% 10,912 32,156 32,823 33,548 1 MILE $68,779.67 $50,502.65 emographics INCOME Income Household Average Income Household Median Percent Change: 2018 to 2023 Change: Percent 2023 Projection 2023 HOUSEHOLD GROWTH to 2018 2010 Change: Percent HOUSEHOLDS Census 2010 2018 Estimate POPULATION GROWTH POPULATION to 2018 2010 Change: Percent Percent Change: 2018 to 2023 Change: Percent 2023 Projection 2023 2018 Estimate POPULATION Census 2010 D
Digital Manga, Nissin Foods, Marukai Corporation U.S.A., and En Pointe Pointe and En U.S.A., Corporation Marukai Foods, Nissin Manga, Digital in Gardena. all headquartered are Technologies Gardena is bordered by Athens on the north, the Los Angeles neighborhood of on the north, the Los by Athens is bordered Gardena Alondra Park on the southwest, on the east and south, Torrance Gateway Harbor Japanese has a large Gardena on the northwest. on the west, and Hawthorne Angeles home to the of Los region the South Bay population helping make States. within the mainland United concentration of Japanese companies largest The City of Gardena was incorporated on September 11, 1930. It combined the It on September 11, 1930. was incorporated of Gardena City The into a Municipal Park and Strawberry Moneta, rural communities of Gardena, was a small farming that time Gardena At City. Class Sixth Corporation, progressive is an active and Gardena Today people. 20,000 of about community that prides itself in and business community with a city government residential a full range of qualified servicesproviding community. to the Gardena is a city located in the South Bay (southwestern) region of Los Angeles of Los region (southwestern) a city located in the South Bay is Gardena and beautiful landscaping. city is known for its rich cultural diversity The County. to meet the needs of both is a family-oriented city with many programs Gardena of its high quality of life. city is proud the family and single population. The Gardena, CA Gardena, Los Angeles MSA
As the second largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California’s original 27 counties, is one of the nation’s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California’s population. The area continues to grow, especially given the vigorous residential development in downtown LA.
Famously known for a heavy entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United States. The Los Angeles-Orange County metro area alone has an enormous economy with an estimated $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas. 15901 S VERMONT AVE 11
Economy The LA economy is famously and heavily based on the entertainment LAThe the entertainment based on famously and heavily economy is motion pictures, on television, particular focus with a industry, of Los district Hollywood music - the games, and recorded interactive Capital known as the “Movie are areas surrounding Angeles and its and commercial extreme due to the region’s States” of the United Other industry. to the w motion picture historical importance significant - particularly international trade include shipping/ sectors together Beach, of Long and Port Angeles of Los at the adjacent Port seaport - as well as aerospace, busiest States’ comprising the United and tourism. and apparel, fashion petroleum, technology, Top Employers Top FINANCIAL12 OVERVIEW
™ 15901 S VERMONT AVE 13 $3,990 $4,600 $15,000 $23,590 Market Market $283,080 Monthly Rent Monthly 16 649 1962 11,301 GAC3 10,390 $1,150 $1,995 $1,500 6113-028-010 Market Rent Rent Market $4,100 $19,125 $2,800 $12,225 Current Current $229,500 Monthly Rent Monthly Number of Units: Number Built: Year APN: Sq. Ft.: Gross Unit: Per S.F. Average Size: Lot Zoning Rent $1,223 $1,025 $1,400 Current Avg Avg Current $346.49 $225,000 13% 25% 63% 14.91 / 12.20 14.91 $3,600,000 3.82% / 5.20% 3.82% Unit Mix % Mix Unit Gardena, CA 90247 Gardena, Ave 15901 S Vermont 1+1 2+2 Studio Unit Mix Unit
2 4 10
nit Mix nvestment Summarynvestment Total Units Total
U I Price Per Unit: Per Price Offering Price: Offering Address: Property S.F.: Per Price / market): (current Cap / market): GRM (current Scheduled Monthly Rent: Monthly Scheduled Rent: Yearly Scheduled Annualized Operating Summary
Current Market Scheduled Gross Income: $229,500 $283,080 23% Upside Less Vacancy Reserve: 3.0% $6,885 3.0% $8,492 * Other Income: (1) Non-Conforming Studio @ $1000/month $12,000 $12,000 Gross Operating Income: $234,615 $286,588 Expenses: 42.4% $97,221 35.1% $99,300 * Net Operating Income: $137,394 $187,288 Loan Payments: $109,898 $109,898 Cash-on-Cash Return: 1.5% $27,496 4.1% $77,389 ** Plus Principal Reduction: $25,170 $25,170 Total Return Before Taxes: 2.8% $52,666 5.4% $102,559 ** * As a percent of Scheduled Gross Income ** As a percent of Down Payment
Proforma Annual Operating Expenses
Current Per Unit % of SGI *Taxes 1.250% x Sale Price $45,000 $2,813 20% *Insurance $0.35 x GSF $3,637 $227 2% Off-Site Management 4.0% x GOI $9,385 $587 4% On-Site Management $600 x 12 Months $7,200 $450 3% Repairs & Maintenance $500 x Units $8,000 $500 3% Contract Services $200 x Units $3,200 $200 1% Utilities $1,000 x Units $16,000 $1,000 7% General Administration $300 x Units $4,800 $300 2.09% Total Expenses $97,221 $6,076 42.4%
Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $48,637 $3,040 21.2% Total Expense without Taxes $52,221 $3,264 22.75% 15901 S VERMONT AVE 15 $1,150 $1,150 $1,150 $1,150 $1,995 $1,995 $1,474 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $23,590 Market Rent Market Rent $900 $1,195 $1,100 $1,100 $1,325 $1,200 $1,200 $1,200 $1,500 $1,200 $1,200 $1,200 $1,500 $1,200 $1,300 $1,000 $1,000 $19,125 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 Mix 2+2 2+2 Studio Studio Studio Studio Totals Averages 1 7 2 5 3 9 6 8 4 11 17 12 16 14 10 Unit 15 (Vacant) Rent Roll Rent Gardena Sales Comparables
Square Sold Address Units Yr Built Price Price Per Unit Price Per Foot Cap Rate GRM Unit Mix Feet Date
(4) Studio 15901 S Vermont Ave 16 1962 10,390 $3,600,000 $225,000 $346.49 3.82% 14.91 None (10) 1/1 (2) 2/2
(2)- Studio 1034 Magnolia Avenue 16 1961 13,156 $3,650,000 $228,125 $277.44 3.37% 16.85 1/24/18 (1)- 1/1 (13)- 2/1
(6)- 2/1 14015 S Budlong Avenue 20 1963 16,528 $4,670,000 $233,500 $282.55 4.07% 13.94 5/17/17 (14)- 2/1.5
(12)- 1/1 1250-1258 West 168th Street 18 1963 15,279 $3,850,000 $213,889 $251.98 2.87% 19.76 5/30/18 (5)- 2/1.75 (1)- 2/1.5
(2)- 2/2 819-825 W 165th Place 16 1963 12,588 $2,875,000 $179,688 $228.39 5.75% 11.13 7/11/18 (10)- 2/1 (4)- 1/1
(20)- 2/1 15515 S Vermont Avenue 25 1960 17,980 $5,100,000 $204,000 $283.65 5.23% 10.86 7/19/18 (5)- 1/1
Averages $211,840 $264.80 4.26% 14.51 15901 S VERMONT AVE 17 Gardena Rent Comparables - Studio Units
Address Number of Units Year Built Floor Plan Asking Rent Square Feet Rent PSF
15901 S Vermont Avenue, 16 1962 Studio $1,050 - - Gardena, CA 90247
1735 W 147th Street, 8 1962 Studio $1,250 450 $2.78 Gardena, CA 90247
860 W 165th Place, 12 1991 Studio $1,195 450 $2.66 Gardena, CA 90247
13921 Normandie Avenue, 68 1964 Studio $1,115 360 $3.10 Gardena, CA 90249
14471 S Vermont Avenue, 64 1968 Studio $1,195 450 $2.66 Gardena, CA 90247
Averages $1,189 428 $2.80 15901 S VERMONT AVE 19 Gardena Rent Comparables - One Bedroom Units
Address Number of Units Year Built Floor Plan Asking Rent Square Feet Rent PSF
15901 S Vermont Avenue, 16 1962 1+1 $1,223 - - Gardena, CA 90247
15120 S Normandie Avenue, 39 1963 1+1 $1,500 700 $2.14 Gardena, CA 90247
1736 Marine Avenue, 15 1958 1+1 $1,495 560 $2.67 Gardena, CA 90247
14807 Normandie Avenue, 19 1961 1+1 $1,450 600 $2.42 Gardena, CA 90247
1035 Magnolia Avenue, 11 1963 1+1 $1,595 750 $2.13 Gardena, CA 90247
Averages $1,513 637 $2.40 15901 S VERMONT AVE 21 Gardena Rent Comparables - Two Bedroom Units
Address Number of Units Year Built Floor Plan Asking Rent Square Feet Rent PSF
15901 S Vermont Avenue, 16 1962 2+2 $1,400 - - Gardena, CA 90247
1035 Magnolia Avenue, 11 1963 2+2 $1,995 1,000 $2.00 Gardena, CA 90247
1439 W 179th Street, 19 1962 2+1 $1,895 - - Gardena, CA 90248
14015 S Budlong Avenue, 20 1963 2+1 $2,050 - - Gardena, CA 90247
1030 Magnolia Avenue, 26 1963 2+1 $1,950 760 - Gardena, CA 90247
Averages $1,973 880 $2.00 15901 S VERMONT AVE 23 Confidentiality Agreement & Disclaimer This Offering Memorandum contains select information pertaining to the business and affairs of15901 S Vermont Avenue Gardena, CA 90247 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1 . The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.
Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Exclusively Listed By ™ NABIL AWADA DAVID HARRINGTON Associate - Multifamily EVP & National Director Direct +310 844 9362 Direct +310 295 1170 Mobile +310 469 2974 Mobile +310 497 5590 [email protected] [email protected] LIC#02046840 (CA) LIC#01320460 (CA)
Offering Memorandum 15901 S VERMONT AVE GARDENA, CA 90247