120 S Boyle Ave Los Angeles CA, Matthews
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™ S BOYLE AVENUE 120 LOS ANGELES, CA OFFERING MEMORANDUM 1 LISTED BY J. A. CHARLES WRIGHT SENIOR ASSOCIATE - MULTIFAMILY Direct +1.310.295.4374 Mobile +1.626.290.5965 [email protected] License No. 01985584 (CA) ™ S BOYLE AVENUE 120 LOS ANGELES, CA E 4 MEET MATTHEWS 12 PROPERTY OVERVIEW 16 LOCATION OVERVIEW 20 FINANCIAL OVERVIEW 32 MARKETING ADVANTAGE S BOYLE AVENUE 120 LOS ANGELES, CA PROPERTY OVERVIEW 4 PROPERTY OVERVIEW 120 S Boyle Avenue is in the heart of Boyle Heights, just steps to Mariachi Plaza and Mariachi Plaza/Boyle Heights Station Metro Gold Line. The location of 120 S Boyle Avenue offers tenants a short drive down 1st Street to the Arts District in Downtown Los Angeles and a short walk to the vibrant 1st Street retail, which will be the hub for re-development as this community continues to grow. This is perfect for any investor looking to capture the 75% upside in rents the property possesses and enjoy rapid appreciation as this area continues to improve and gentrify. PROPERTY HIGHLIGHTS » 16 Units Built in 1965 » Unit Mix: (12) One-Bedrooms, (2) Two-bedrooms, (2) Studios » 15 Parking Spaces On-Site » Property Subject to Soft-Story Retrofit » 10,104 Gross Square Foot Building » 10,529 Square Foot Lot » LAR4 Zoning » Separately Metered for Gas and Electricity » Landlord Pays Water, Sewage, Trash and Common Area Gas and Electricity » Walk to Mariachi Plaza/Boyle Heights Station – Metro Gold Line » Short Drive to Arts District in Downtown Los Angeles 5 PHYSICAL DESCRIPTION $ NO. OF UNITS YEAR BUILT APN GROSS SF AVG SF PER UNIT LOT SIZE 16 1965 5174-018-023 10,104 632 10,529 SF PARCEL MAP 6 7 S BOYLE AVENUE 120 LOS ANGELES, CA LOCATION OVERVIEW 8 BOYLE HEIGHTS Boyle Heights is a charming, historic, and walkable working- closs neighborhood of almost 100,000 residents just a few Demographics miles east of Downtown Los Angeles. Located just across the river from the Arts District, the neighborhood is a highly dense POPULATION 1 MILE 3 MILE 5 MILE area of Los Angeles with over 75% of residents being renters. 2010 Census 42,056 327,457 1,069,004 Recently, Boyle Heights has seen a lot of interest and is a place 2019 Estimate 44,887 354,753 1,122,033 for residents looking to escape high rents elsewhere. Boyle Heights is undergoing a real estate boom and property values 2024 Projection 46,510 368,726 1,156,984 have trended upward. POPULATION GROWTH Growth 2019-2024 6.73% 8.34% 4.96% Growth 2010-2019 3.62% 3.94% 3.12% Distance to: HOUSEHOLDS Downtown Los Angeles 2010 Census 11,077 97,756 320,582 2.1 Miles 2019 Estimate 11,990 110,072 342,107 2024 Projection 12,503 115,632 354,665 Distance to: HOUSEHOLD GROWTH Dodger Stadium Growth 2019-2024 8.24% 12.60% 6.71% 3.0 Miles Growth 2010-2019 4.28% 5.05% 3.67% INCOME Distance to: 2019 Avg Household Income $56,280 $64,436 $64,518 University of Southern California 5.9 Miles STRATEGIC LOCATION Conveniently located with easy access to four freeways, a light-rail and plenty of bridge connections to downtown, Boyle Heights is centrally located to most employment centers in the eastern half of the city and is close to bars and restaurants in the desirable Arts District. There have also been investments from the city that connect the neighborhood to downtown making it more attractive. These investments are the Gold Line Eastside Extension, which opened the Mariachi Metro Station in 2009, and the future Sixth Street Viaduct. LIFESTYLE Boyle Heights is a neighborhood rich with history. There is a strong Latino presence and Mariachi bands are always playing at Mariachi Plaza. From the Breed Street Shul to Mariachi Plaza, the history of Boyle Heights is still there to experience. Hollenbeck Park, the Sears Building, and the old Santa Fe Railroad hospital are just some of the iconic locations in the neighborhood. Those looking for LA’s best street food should make their way directly to Boyle Heights. Some of the area’s best vendors regroup every Saturday night at El Mercado del Pueblo near Hollenbeck Middle School. There are also plenty of local bakeries to pick up dessert and enjoy the neighborhood’s impressive murals. 10 LOS ANGELES MSA STRATEGIC LOCATION 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. LIFESTYLE 11 S BOYLE AVENUE 120 LOS ANGELES, CA FINANCIAL OVERVIEW 12 INVESTMENT SUMMARY 120 S Boyle Ave Los Angeles, CA 90033 Offering Price: $2,700,000 Price Per Unit: $168,750 Price Per S.F.: $267.22 Cap (current / market): 3.14% / 7.72% GRM (current / market): 15.17 / 8.69 Number of Units: 16 Year Built: 1965 APN: 5174-018-023 Gross Sq. Ft.: 10,104 Average S.F. Per Unit: 632 Lot Size: 10,529 Zoning: LAR4 UNIT MIX Total Unit Unit Mix Current Current Market Market Units Mix % Avg Rent Monthly Rent Rent Monthly Rent 2 Single 13% $623 $1,246 $1,350 $2,700 12 1+1 75% $932 $11,184 $1,625 $19,500 2 2+1 13% $1,202 $2,404 $1,850 $3,700 Scheduled Monthly Rent: $14,834 $25,900 Scheduled Yearly Rent: $178,008 $310,800 13 ANNUALIZED OPERATING DATA Current Market Scheduled Gross Income: $178,008 $310,800 75% Upside Less Vacancy Reserve: $5,340 3.0% $9,324 3.0% * Gross Operating Income: $172,668 $301,476 Expenses: $87,793 49.3% $92,945 29.9% * Net Operating Income: $84,875 $208,531 Loan Payments: $70,721 $70,721 Cash-on-Cash Return: $14,153 0.9% $137,809 9.2% ** Plus Principal Reduction: $20,197 $20,197 Total Return Before Taxes: $34,350 2.3% $158,006 10.5% ** * As a percent of Scheduled Gross Income ** As a percent of Down Payment PRO FORMA ANNUAL OPERATING EXPENSES Current Per Unit % of SGI *Taxes 1.250% x Sale Price $33,750 $2,109 19% *Insurance $0.35 x GSF $3,536 $221 2% Off-Site Management 4.0% x GOI $6,907 $432 4% On-Site Management $500 Per Month $6,000 $375 3% Repairs & Maintenance $500 x Units $8,000 $500 4% Contract Services $400 x Units $6,400 $400 4% Utilities $1,200 x Units $19,200 $1,200 11% General Administration $250 x Units $4,000 $250 2.25% Total Expenses $87,793 $5,487 49.3% Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $37,286 $2,330 20.9% Total Expense without Taxes $54,043 $3,378 30.36% 14 RENT ROLL Market Unit Mix Rent Rent 1 1+1 $1,288 $1,625 2 2+1 $1,202 $1,850 3 1+1 $956 $1,625 4 1+1 $956 $1,625 5 2+1 $1,202 $1,850 6* 1+1 $326 $1,625 7 1+1 $1,045 $1,625 8 1+1 $1,003 $1,625 9 1+1 $680 $1,625 10 1+1 $683 $1,625 11 Single $600 $1,350 12 1+1 $985 $1,625 13 1+1 $1,350 $1,625 14 1+1 $956 $1,625 15 1+1 $956 $1,625 16 Single $646 $1,350 Totals $14,834 $25,900 16 Averages $927 $1,619 *Manager's Unit - No Employment Contract in place, only rent reduction. 15 7 5 1 6 2 3 4 16 SALES COMPARABLES Address Units Yr Built Sq Ft Price Per Unit Per Foot Cap Rate GRM Sold Date Notes Unit Mix: (12) - 1/1, (2) - 2/1, (2) - Single | Soft-Story Retrofit 120 S Boyle Avenue 16 1965 10,104 $2,700,000 $168,750 $267.22 3.14% 15.17 None Required, Located in the heart of Boyle Heights Unit Mix: (6) - 2/1 | Property in good 2743 Fairmount Street 6 1965 4,277 $1,050,000 $175,000 $245.50 3.75% 14.22 9/6/17 1 condition, All Units Occupied, Subject to Soft Story Retrofit Unit Mix: (16) - 2/1, (6) - 1/1, (2) - 3/1 | 2 3118 Wabash Avenue 24 1966 18,184 $4,000,000 $166,667 $219.97 3.86% 15.62 11/2/18 24 Parking Spaces in Parking Garage, Subject to Soft Story Retrofit, All Units Occupied Unit Mix: (10) - 2/1, (4) - 3/2 | 28 Parking 3 3168 Wabash Avenue 14 1973 11,600 $2,800,000 $200,000 $241.38 2.13% 20.82 3/15/18 Spaces in Parking Garage, NOT Soft Story Retrofit, Property in Good Condition Unit Mix: 215 N Fickett Street 6 1964 4,624 $1,100,000 $183,333 $ 2 37. 8 9 4.25% 12.69 8/25/17 (6) - 2/1 | Subject to Soft-Story 4 Retrofit. Unit Mix: (9) - 1/1, (4) - 2/1, (1) - NC Single| 5 1840 Pomeroy Avenue 13 1969 10,340 $ 1, 8 37, 50 0 $141,346 $ 17 7. 7 1 5.40% 10.69 10/18/18 Subject to Soft-Story Retrofit, Property in Fair Shape Unit Mix: 6 2430 Folsom Street 9 1963 4,805 $1,250,000 $138,889 $260.15 3.90% 14.79 12/28/18 (8) - 1/1, (1) - 2/1 | Subject to Soft Story Retrofit, All Units Occupied Unit Mix: (14) - 2/1, (4) - 1/1 | Subject to 1648 Murchison Street 18 1965 12,052 $2,988,000 $166,000 $ 247.