cash flow or occupy - laundromat property for sale

November 20, 2020

Presented By:

Martin McDermott 323.452.6762 [email protected]

Odest T. Riley Jr. 310.905.7420 [email protected] table of contents

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1401 // suite 260 // , ca 90024 // 323.477.2580 // methodcommercial.com section 1 property information 7601 VERMONT AVE investment

LOS ANGELES, CA 90044 SALE PRICE: $1,400,000

This opportunity is for laundry operators looking to own not only the business but the real estate as well. This could be the perfect scenario for the value-add investor seeking both a higher return than most Los Angeles real estate investments and a greater amount of depreciation via cost segregation (seek council from CPA on all tax matters).

This opportunity has already been reviewed by the leading Southern SBA Certified Development Company (a nonprofit corporation that promotes economic development within its community through SBA 504 Loans for real estate and equipment). Subject to buyer qualifications and appraisal, the property is well suited for its program. For the value-add investor, other debt options have been proactively explored.

• No key money for the business

• Essential service use always in demand

• Costly laundry infrastructure in-place

Lot Size: 8,705 SF Building Size: 3,250 SF Zoning: C2-1VL-CPIO Year Built: 1987 APN: 6019018048

1401 Westwood Boulevard // Los Angeles, CA 90024 // 323.477.2580 // methodcommercial.com section 1 / page 4 property description

PROPERTY DESCRIPTION The property is approximately 3,250sf on 8,705sf of commercial land constructed in 1987. The construction appears to be CMU with a wall of street-facing storefront glass and a flat composite roof. The parking field is located in the front of the property and is striped with fourteen spaces for an above standard parking ratio of 4.3/1000sf. There is a large pole sign located at the forward edge of the parking lot for maximum visibility for both north and southbound traffic. The rear of the property includes additional off-alley parking whichis currently gated for storage and security.

The interior is specifically constructed for laundry use with the proper infrastructure of plumbing, power service, and venting. Not included in the sale but currently located at the property are seventy-two washers and seventy-one dryers. There is extensive millwork to house the machinery, to provide workspace, to house the vending machines and the entertainment systems. In addition to the main laundry area, the interior demising includes a customer restroom, an employee office, and a storage room.

ZONING C2-1VL-CPIO Tier 2 TOC

1401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com section 1 / page 5 interior photos

1401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com section 1 / page 6 section 2 location information regional map

1401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com section 2 / page 8 location map

LOCATION OVERVIEW

The Property is located in the Vermont Vista neighborhood, an area that was built in the 1930s located near Westmont. Vermont is one of the major corridors for travel and commerce in this area providing excellent visibility for the laundromat. The Property is near three other major corridors (1 mile east of Western Avenue, 3/4th of a mile north of Manchester Avenue, and a 1/4th mile south of ) and two blocks west of the southbound on-ramp of the 405 freeway.

This is a densely populated area with a 40/60 mix of single-family to apartment zoning. The high-density plus the older housing stock creates a consistent and strong demand for off-site laundry. Due to the recent surge in value in the surrounding neighborhoods such as Inglewood, Leimert Park, and the Crenshaw District this area is experiencing strong residential demand for additional housing which will continue to support demand for this property's use.

1401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com section 2 / page 9 aerial maps

1401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com section 2 / page 10 section 3 financial analysis financial summary

INVESTMENT OVERVIEW

Price $1,400,000 Price per SF $430.77 Pro Forma CAP Rate 6%

FINANCING DATA (SBA)

Down Payment $140,000 Loan Amount $1,260,000 Debt Service Montly $5,975 Estimated interest Rate 3% Fixed Term/Amortization Period 25yr/25yr

Cap rates and income are proforma based and SBA loan details will vary with time and sponsor credit.

1401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com section 3 / page 12 section 4 sales comparables sale comps

SUBJECT PROPERTY 1 7601 Vermont Ave | Los Angeles, CA 90044 1613 Centinela Avenue | Inglewood, CA 90302

Sale Price: $1,400,000 Sale Price: $760,000 Lot Size: 0.2 AC Lot Size: 0.17 AC Year Built: 1987 Year Built: 1976 Building SF: 3,250 SF Building SF: 2,000 SF Price PSF: $430.77 Price PSF: $380.00 CAP: 5.36% Closed: 09/25/2019 Occupancy: 100.0% This was an investment sale of a 2,000 SF 100% leased Laundromat. The property was reported to have sold with a Net Operating Income of $40,179. The property was sold 'as-is', with no deferred maintenance reported but in inferior condition to the Subject Property.

2 3 1011 W 84th Place | Los Angeles, CA 90044 9018-9022 Avalon Blvd | Los Angeles, CA 90003

Sale Price: $400,000 Sale Price: $2,900,000 Lot Size: 0.13 AC Lot Size: 0.22 AC Year Built: 1929 Year Built: 1964 Building SF: 936 SF Building SF: 5,932 SF Price PSF: $427.35 Price PSF: $488.87 Closed: 05/07/2019 CAP: 7% Occupancy: 100.0%

Sold vacant for an owner-user with a retail use. The corner location and large parking lot were the main drivers A laundromat in a similar location, but with an inferior condition, and parking ratio. for the buyer. The property had deferred maintenance and was in an inferior condition to the Subject Property.

1401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com section 4 / page 14 sale comps summary

SUBJECT PROPERTY PRICE BLDG SF PRICE/SF CAP CLOSE

7601 Vermont Ave Los Angeles, CA $1,400,000 3,250 SF $430.77 - - 90044

SALE COMPS PRICE BLDG SF PRICE/SF CAP CLOSE 1613 Centinela Avenue 1 Inglewood, CA $760,000 2,000 SF $380.00 5.4% 09/25/2019 90302

1011 W 84th Place 2 Los Angeles, CA $400,000 936 SF $427.35 - 05/07/2019 90044

9018-9022 Avalon Blvd 3 Los Angeles, CA $2,900,000 5,932 SF $488.87 7.0% On Market 90003

AVERAGES $1,353,333 2,956 SF $457.83 6.2% -

1401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com section 4 / page 15 sale comps map

SUBJECT PROPERTY 7601 Vermont Ave | Los Angeles, CA 90044

1 1613 Centinela Avenue 2 1011 W 84th Place Inglewood, CA 90302 Los Angeles, CA 90044

3 9018-9022 Avalon Blvd Los Angeles, CA 90003

1401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com section 4 / page 16 section 5 demographics demographics map & report

POPULATION 1 MILE 2 MILES 3 MILES Total Population 55,466 206,245 440,206 Average age 29.2 29.2 29.2 Average age (Male) 28.3 27.8 27.6 Average age (Female) 30.4 30.5 30.7

HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES Total households 16,504 59,338 125,341 # of persons per HH 3.4 3.5 3.5 Average HH income $43,231 $43,182 $43,265 Average house value $409,166 $384,799 $395,002

* Demographic data derived from 2010 US Census

1401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com section 5 / page 18 Thank For more You information or to schedule a tour...

Martin McDermott 323.452.6762 [email protected]

Odest T. Riley Jr. 310.905.7420 [email protected]