OFFERING MEMORANDUM
EIGHTH STREET APARTMENTS A MULTIFAMILY DEVELOPMENT OPPORTUNITY 1517-1521 W. 8TH ST. LOS ANGELES, CA 90017
Capital Markets | Investment Properties AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT
CBRE, Inc. Operates within a global family of authorization of the owner of the Property contained herein, to consult with independent companies with many subsidiaries and related (“Owner”) or CBRE, Inc., and (iv) you will not use legal and financial advisors, and carefully entities (each an “Affiliate”) engaging in a broad any part of this Memorandum in any manner investigate the economics of this transaction and range of commercial real estate businesses detrimental to the Owner or CBRE, Inc. Property’s suitability for your needs. ANY RELIANCE including, but not limited to, brokerage services, ON THE CONTENT OF THIS MEMORANDUM IS property and facilities management, valuation, If after reviewing this Memorandum, you have no SOLELY AT YOUR OWN RISK. investment fund management and development. further interest in purchasing the Property, kindly At times different Affiliates, including CBRE Global return it to CBRE, Inc. The Owner expressly reserves the right, at its sole Investors, Inc. Or Trammell Crow Company, may discretion, to reject any or all expressions of interest This Memorandum contains select information have or represent clients who have competing or offers to purchase the Property, and/or to pertaining to the Property and the Owner, and interests in the same transaction. For example, terminate discussions at any time with or without does not purport to be all-inclusive or contain all Affiliates or their clients may have or express an notice to you. All offers, counteroffers, and or part of the information which prospective interest in the property described in this negotiations shall be non-binding and neither investors may require to evaluate a purchase of Memorandum (the “Property”), and may be the CBRE, Inc. nor the Owner shall have any legal the Property. The information contained in this successful bidder for the Property. Your receipt of commitment or obligation except as set forth in a Memorandum has been obtained from sources this Memorandum constitutes your acknowledgment fully executed, definitive purchase and sale believed to be reliable, but has not been verified of that possibility and your agreement that neither agreement delivered by the Owner. for accuracy, completeness, or fitness for any CBRE, Inc. nor any Affiliate has an obligation to particular purpose. All information is presented disclose to you such Affiliates’ interest or “as is” without representation or warranty of any involvement in the sale or purchase of the Property. kind. Such information includes estimates based In all instances, however, CBRE, Inc. And its on forward-looking assumptions relating to the Affiliates will act in the best interest of their general economy, market conditions, competition respective client(s), at arms’ length, not in concert, and other factors which are subject to uncertainty or in a manner detrimental to any third party. and may not represent the current or future CBRE, Inc. and its Affiliates will conduct their performance of the Property. All references to respective businesses in a manner consistent with acreages, square footages, and other the law and all fiduciary duties owed to their measurements are approximations. This respective client(s). Memorandum describes certain documents, Your receipt of this Memorandum constitutes your including leases and other materials, in summary acknowledgment that (i) it is a confidential form. These summaries may not be complete nor Memorandum solely for your limited use and accurate descriptions of the full agreements benefit in determining whether you desire to referenced. Additional information and an express further interest in the acquisition of the opportunity to inspect the Property may be made Property, (ii) you will hold it in the strictest available to qualified prospective purchasers. You confidence, (iii) you will not disclose it or its are advised to independently verify the accuracy contents to any third party without the prior written and completeness of all summaries and information
© 2018 CBRE, Inc. All Rights Reserved. EIGHTH STREET APARTMENTS
PROPERTY DESCRIPTION
The Eighth Street Apartments is a unique opportunity to develop a multifamily asset within a Tier 3 Transit Priority Area in the City of Los Angeles.
The offering includes parcels 5142-023-003 and 5142-023-004 for a total of 12,889 square feet of LAC2-2D land. The site is available as a “Ready to Issue Permits” 34-unit project which represents the standard density “by-right” based on the zoning alone. Additionally, the City’s Transit Oriented Communities Affordable Housing Incentive Program allows for a 70% density bonus for a total of 55 units (unentitled). THE OFFERING
Option 1 Permits RTI Option 2 Unentitled with TOC Bonus
Purchase Price...... P$4,500,000urchase Price ...... Purchase $3,900,000Price...... $4,500,000
Land Area...... 12,889Land Area ...... Land Area ...... 12,889 12,889
Buildable Units...... 34 Buildable Units...... 55
Utilize TOC?...... No Utilize TOC?...... Yes
Price per Buildable Unit...... $114,706 Price per Buildable Unit...... $70,909
Price per Land SF...... $302.58 Price per Land SF...... $302.58
Status...... Permits Ready to Issue Status...... Unentitled
FAR...... 3:1 FAR...... 4.5:1
6 for Extremely Low Income, 8 for Very Units Restricted for Affordable Housing... None Units Restricted for Affordable Housing... Low Income, or 13 for Lower Income Households
Parking Required...... 54 Parking Required...... 5 per unit max
4 EIGHTH STREET APARTMENTS
5 THE OFFERING
EIGHTH STREET APARTMENTS
PERMIT READY PROJECT:
PARKING • 36 standard • 17 compact (10 in tandem) • 1 handicap • 16 bicycle
UNIT SUMMARY NET # OF UNIT TYPE UNIT NUMBER SQUARE FOOTAGE BEDROOMS & BATHROOMS
A 101, 201, 301, 401, 501 938 SF 2 Bed | 2 Bath
B 102, 202, 302, 402, 502 964 SF 2 Bed | 2 Bath
C 103, 203, 303, 403, 503 576 SF 1 Bed | 1 Bath
D 104, 204, 304, 404, 504 1,139 SF 2 Bed | 2 Bath
E 205, 305, 405, 505 888 SF 2 Bed | 2 Bath
F 106, 206, 306, 406, 506 901 SF 2 Bed | 2 Bath
G 107, 207, 307, 407, 507 608 SF 1 Bed | 1 Bath 6 EIGHTH STREET APARTMENTS
7 LOCATION HIGHLIGHTS
1517 - 1521 W. 8th Street
8 EIGHTH STREET APARTMENTS
LOS ANGELES MULTIFAMILY MARKET HIGHLIGHTS
Q2 TOTALS NET ABSORPTION, NET DELIVERIES & VACANCY RATE
2,386 1,825 12-MONTH 12-MONTH DELIVERIES IN UNITS NET ABSORPTION
10.7% 5.3% VACANCTY RATE 12-MONTH RENT GROWTH
DELIVERIES & DEMOLITION MARKET RENT PER UNIT & RENT GROWTH
9 DOWNTOWN LA NEW DEVELOPMENT
LIFORN 101 CA IA UNDER CONSTRUCTION 110 PLANNED & PROPOSED CIVIC & CULTURAL CIVIC & CULTURAL 1. Federal Courthouse 56. Hauser Wirth& Schimmel Art Center 2. Variety Arts Center 57. Los Angeles Convention Center MAJOR MIXED USE MAJOR MIXED USE 3. SOHO 58. SoLA Village INTERSTATEINTERSTATE 4. Fig Central 59. Sixth & Alameda 5. Mack Urban Phase II 60. Olympic Tower 6. Wilshire Grand 61. Mack Urban Project Phase 2 7. Broadway Trade Center 62. Luxe Hotel OFFICE/RETAIL OFFICE/RETAIL 8. ROW DTLA 63. Heald Examiner 9. Ford Factory 64. 718 S. Hill 10. Coca-Cola Building RESIDENTIAL 11. 500 S Santa Fe 66. 916 Hill St 66. Spring Street Apartments 12. AT MATEO 101101 13. 527 S Broadway 67. SB Omega 14. Clifton’s Cafeteria 68. The Hill 15. 353 S Broadway 69. 4th& Broadway RESIDENTIAL 70. SoCal Gas Company 16. Broadway Palace Phase I 101 71. Beacon on HIll / 4th and Hill 17. New Pershing Apartments 72. The Chelsea 18. Topaz 73. 732 South Spring Street 19. Vibiana Lofts 74. Broadway and Olympic Condos 20. 932 S. Hill St. 75. Alexan 21. Broadway Palace Phase II 76. Formerly AMP Lofts
LIFORN 22. The Vail CA IA 77. 1525 Industrial Street 110 23. 939 S. Broadway 78. 1800 E. 7th St 24. Medallion 2.0 79. 527 S. Colyton St. 25. Title Insurance Building 80. The Walnut 26. Banco Popular 81. Onni Towers 27. Megatoys 82. 1133 S Hope 28. 950 3rd PH 1& 2 83. 916 Georgia St 29. Onyx Phase 2 84. 1212 Flower 30. 1001 S Olive 85. 1201 S Grand 86. The Emerald 31. G12 101101 32. 1200 Fig 87. Fig & Pico 33. E on Grand or Alley - Pico 88. Grand Residences 34. The Glass Tower Ten 50 89. 1027 Wilshire 35. Project at Pico Mack Urban Phase I 90. 1324 W. Wilshire 36. 156 W 11th 91. Marionette Lofts 37. 1400 S Figueroa 92. Ferrante 38. Apex Phase II 93. Sapphire 39. 820 S Olive 94. 1148 South Broadway 40. Blossom Plaza 95. 1130 S Hope 41. Sixth& Bixel 96. 737 S. Spring St 42. Valencia 97. FLOR 41 Lofts 43. 1416 W. 7th St 98. Six Four Nine Lofts 44. Grand & Cesar Chavez Tower HOTEL 45. Lotus 77 (EtcoINTERSTATEINTER Homes)STATE 99. 419 S. Spring 46. Block 8-D 100. 4th and Broadway 47. 255 Grand 101. JW Marriott Expansion 48. The Maxfield Building 102. Hoxton Hotel 49. Bunker Hills Tower 103. Dart Hotel 50. Singer Sewing Building HOTEL 51. Freehand Hotel 52. Embassy Hotel 53. Hotel Figueroa INTERSTATE 110 54. Millennium Biltmore Hotel 55. Hotel Clark
INTERSTATE 10
10 EIGHTH STREET APARTMENTS
SOUTHPARK NEW DEVELOPMENT OS A E ES, CA
RESIDENTIAL P N C H P N O T P N T P N D P P P D B N D B D M A S C HOTEL A U A U A U H R 2 H R MA OR MI ED USE P N A P II 110 R S 1 D H P P N O P O S D O H R S P N M A U 1 P N S H D G G P N C D CIM P N O C U R S 1 D C C H R 1 D R C U 1 1 A U 2 C U 1 R S 1 H R C U 2 H R 22 P N S H T O S 2 R S D S H R S 2 R S P N P P N O T P N C C U P N 2 O D L G D O G D S W TH ST H R D O G
H R 1 1 2 A U C U R S A U 1
R S 11 R S R S R S
S IGUEROA ST P N 11 H T P N 2 S H S P N H S D O G H P D S V A U 1 H R C U 2 S HOPE ST R S P N 1 1 O 110 D L P N 1 W 1TH ST D T C S LOWER ST A U 2 1 P N M U P 2 H R 1 2 W OLYMPIC BLVD D M U AECOM R S
C U 12 P N H H H R D E
W PICO BLVD R S 1 H R 1 P N C L P N O D DHG T D E S GRAND AVE P N WREN P N A E D C A U 1 A U 1 D M U
R S A U 2 A U 1 1
INTERSTATE R S R S 10 S MAIN ST P N A T D C P N 1 S P N 1 S P N E G P N E D L A D P P N M H D D D D E A U 21 D H I A U 1 A U 1 R C A U 112 P N 1 H S A U 1 R S
R S R S 2 H R R S A U 2 R S 1
© 2017 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the nited States and other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved. Sources CBRE Mapping Services 877 580-4674 ielsen, StreetPro. MapFiles Work2017 4th tr 344316.wor 10/18/2017 11 12 EIGHTH STREET APARTMENTS
13 SALES COMPARABLES
Address Price Markets Entitlements Zoning Price/Land SF Comments
Approved 5-story, 80-unit, Sold 1218 Ingraham Ave. $8,450,000 RTI LACW $384.02 all market rate apartments, 4/6/2018 2 levels subterranean parking
Entitled for a 174,082sf, 218-unit 495 Hartford Ave. $19,500,000 On-Market Approved Plan LAR5 $422.56 apartment project
Sold Listed at 3.65MM 1312 W. 8th St. $3,750,000 RTI LAC2 $332.30 9/1/2017 and bid up 100k above asking
14 EIGHTH STREET APARTMENTS
SALES COMPARABLES
15 CONTACT US
ADAM PETERSON ALEX FRAPECH First Vice President Associate +1 310 550 2592 +1 310 228 2105 [email protected] [email protected] Lic. 01815802 Lic. 02026469
Capital Markets | Investment Properties