11964 Kiowa Avenue Is an 18-Unit Apartment Building Located in the Heart of Brentwood, One of the Most Desirable Rental Markets in Los Angeles
OFFERING MEMORANDUM 11964 Kiowa ™ LOS ANGELES, CA LISTED BY:
DANIEL WITHERS SVP & Senior Director - Multifamily Direct +1 818 923 6107 Mobile +1 310 365 5054 [email protected] License No. 01325901 (CA)
CO-LISTED WITH:
MARCUS & MILLICHAP Jeffery Louks
Direct + 1 818 212 2780 Mobile + 1 310 941 5899 Fax (818) 212 2627 [email protected] License No. 00908473
| 2 CONTENTS
05 PROPERTY OVERVIEW 09 AREA OVERVIEW 17 FINANCIAL OVERVIEW
3 | WILSHIRE BLVD
KIOWA AVE
| 4 PROPERTY SECTION OVERVIEW 02
5 | | 6 11964 Kiowa LOS ANGELES, CA
LOCAL MAP PROPERTY OVERVIEW 11964 Kiowa Avenue is an 18-unit apartment building located in the heart of Brentwood, one of the most desirable rental markets in Los Angeles. Built in 1968, the property consists of an excellent mix of twelve one-bedroom, one-bathroom, four two-bedroom, two-bathroom and two three-bedroom, two and a half bathroom units. Key property features include secure controlled access, reserved carport parking, private balconies, laminate flooring and fireplaces in select units. There is an on-site laundry facility which allows an investor to capitalized on the additional income.
Situated in an ideal Brentwood location, tenants benefit from the ability to walk to the many restaurants, cafes, bars, coffee shops and fitness studios that line San Vicente Blvd. and Wilshire Blvd. Additionally, the community also offers a weekly farmer’s market and several grocery options including Whole Foods, Ralphs and Vicente Foods. This location attracts tenants from UCLA and provides easy access to the 405 Freeway connecting the area to surrounding cities in Los Angeles.
PROPERTY HIGHLIGHTS • 18-Units, Built in 1968
• Unit Mix: (12) 1+1, (4) 2+2, (2) 3+2.5 • Strong demographics – affluent area • 32% upside in rental income • Located in the heart of Brentwood walking distance to restaurants, coffee shops, cafes, bar and fitness studios • Walk score of 83 – Very Walkable • Easy access to the 405 Freeway
• 19,026 square foot building on a 14,503 square foot lot zoned LAR3
7 | AREA SECTION OVERVIEW 03
| 8 2
1 BRENTWOOD, CALIFORNIA
Perched on LA’s Westside, at the base of the Santa Monica Mountains, Brentwood is an upscale neighborhood teeming with high-end boutiques, fine dining, and luxurious gardens. The main thoroughfare in the community is San Vicente Boulevard, where eateries, cafes, and the historic Brentwood County Mart sit along tree-lined avenues. Brentwood is also home to the famous Getty Center, which boasts extensive museums, 4 3 scenic gardens, and stunning views that draw millions of visitors every year. Sprawling estates and luxury apartments comprise the bulk of the rental market in Brentwood, providing many options for a lavish lifestyle in the hills.
ECONOMY
Some of the largest employers of Contra Costa County include Bay Alarm, Bay Area Rapid Transit, Chevron, Contra Costa Regional Medical Center, Shell Oil Products, Sutter Delta Medical Center, Sutter Delta Medical Center, and many more. More specifically, the city of Brentwood has recently taken steps towards an economic development strategy and action plan that could generate hundreds of new jobs each year. The economic instrument’s key goals include: building and maintaining a healthy, balanced economy with a diverse range of businesses; strengthening and expanding local companies; fostering local entrepreneurialism and new business formation; building a vibrant downtown and retail sector; and positioning the city to attract a high-quality workforce. These goals are to bring a full-scale hospital or health care campus; develop a next-generation business park; bring in a business and development workforce-training center; encourage the farm-to-table concept; and create a visitors and tourism bureau and a restaurant association.
9 | 1 UCLA 2.7 MILES FROM SUBJECT PROPERTY
The University of California, Los Angeles (UCLA) is a public research university in Los Angeles. The university is organized into six undergraduate colleges, seven professional schools, and four professional health science schools. UCLA is considered one of the country‘s Public Ivies, meaning that it is a public university thought to provide a quality of education comparable with that of the Ivy League. In 2018, US News & World Report named UCLA the best public university in the United States. The university has a significant impact in the Los Angeles economy. It is the fifth largest employer in the county and the seventh largest in the region. Students never have shortage of activites, as the campus is located near prominent entertainment venues such as the Getty Center, the Los Angeles County Museum of Art (LACMA) and the Santa Monica Pier. UCLA is also home to more than 70 fraternities and sororities, which represent 13% of the undergraduate population.
2 THE GETTY 4.0 MILES FROM SUBJECT PROPERTY
The J. Paul Getty Museum, commonly referred to as the Getty, is an art museum in California housed on two campuses: the Getty Center and Getty Villa. The J. Paul Getty Trust is the world‘s largest cultural and philanthropic organization dedicated to the visual arts. The Getty Foundation supports the understanding and preservation of the visual arts through strategic grant initiatives around the world. The primary museum, the Getty Center, is located in Brentwood neighborhood in Los Angeles and its collection features Western art from the Middle Ages to the present. The Getty Center’s 86 acres of landscaped gardens and terraces include the Central Garden designed by artist Robert Irwin—a 134,000-square-foot work of art. The secondary museum, the Getty Villa, is in the Malibu neighborhood and displays art from Ancient Greece, Rome, and Etruria. Located on 64 acres in Pacific Palisades, the Villa site occupies a small canyon adjacent to coastal mountains and the Pacific Ocean.
3 BRENTWOOD COUNTRY MART 1.8 MILES FROM SUBJECT PROPERTY
The Brentwood Country Mart is a local shopping and food center in the Brentwood district of Los Angeles, California, next to the Santa Monica eastern city limit. First opened on November 18, 1948, it has now become a tourist destination as many celebrities are frequently seen at the mart. The Mart hosts twenty-two stores and six dining options for visitors to enjoy. This quaint local destination adds a sense of charm to the Brentwood neighborhood and keeps visitors coming back.
4 BRENTWOOD COUNTRY CLUB 1.6 MILES FROM SUBJECT PROPERTY
The Brentwood Country Club offers an elegant, yet relaxed atmosphere where local families can enjoy their time. With an award-winning golf course, tennis, pool, and state of the art fitness facilities, the Brentwood Country Club is a local hotspot. Members have the option to dine in at the new Tavern and unwind after a busy day.
| 10 DEMOGRAPHICS
POPULATION 1-MILE 3-MILE 5-MILE 2010 Census 46,291 242,004 495,619 2019 Estimate 47,484 251,974 515,814 2024 Projection 48,599 259,206 530,476 Growth 2010-2019 2.58% 4.12% 4.08% Growth 2019-2024 2.35% 2.87% 2.84%
HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2010 Census 24,024 112,787 228,562 2019 Estimate 24,617 117,384 238,010 2024 Projection 25,197 120,924 245,086 Growth 2010-2019 2.47% 4.08% 4.13% Growth 2019-2024 2.36% 3.02% 2.97%
INCOME 1-MILE 3-MILE 5-MILE 2019 Avg. $130,634 $146,720 $146,088 Household Income
126,683 $100,081 3.4% POPULATION MEDIAN UNEMPLOYMENT HOUSEHOLD INCOME RATE
11 | AVERAGE HOUSEHOLD INCOME
NUMBER OF EMPLOYEES
$75,000 or more
$60,000 or more
$45,000 or more
$30,000 or more
$30,000 or less
| 12 EMPLOYMENT DENSITY
NUMBER OF EMPLOYEES
30,000 or more
20,000 or more
10,000 or more
5,000 or more
Less than 5,000
13 | West Hollywood ± 7.5 MI
Century City ± 4.2 MI
Santa Monica ± 2.8 MI
SANTA MONICA, CALIFORNIA WEST HOLLYWOOD, CALIFORNIA CENTURY CITY, HOLLYWOOD
Santa Monica is a beachfront city in western Los Angeles West Hollywood, commonly referred to as WeHo, is a city in Century City is a neighborhood and business district in County, California. Situated on Santa Monica Bay, it is bordered Los Angeles County, California. West Hollywood is bounded Los Angeles, California. Located on the Westside just on three sides by the city of Los Angeles – Pacific Palisades to by the city of Beverly Hills on the west, and on other sides by outside downtown Los Angeles, Century City is one of the the north, Brentwood on the northeast, West Los Angeles on neighborhoods of the city of Los Angeles: Hollywood Hills most prominent employment centers in the Los Angeles the east, Mar Vista on the southeast, and Venice on the south. on the north, Hollywood on the east, the Fairfax District on metropolitan area, and its skyscrapers form a distinctive The Santa Monica Pier and Pacific Park are popular destinations the southeast, and Beverly Grove on the southwest. West skyline on the Westside. Important to the economy are the for visitors. Santa Monica has three main shopping districts: Hollywood benefits from a very dense, compact urban form Westfield Century City shopping center, business towers, and Montana Avenue on the north side, the Downtown District in with small lots, mixed land use, and a walkable street grid. Fox Studios Westfield Century City recently went under an the city’s core, and Main Street on the south end. Each has its According to Walkscore, a website that ranks cities based $800 million renovation and expansion that aimed to maintain own unique feel and personality. Montana Avenue is a stretch on walkability, West Hollywood is the most walkable city in the center’s status as one of the Westside’s premier shopping of luxury boutique stores, restaurants, and small offices that California with a Walkscore of 89. Commercial corridors include and entertainment destinations. One tower, Constellation generally features more upscale shopping. The Main Street the nightlife and dining focused on the Sunset Strip, along Place, has the headquarters of Houlihan Lokey, ICM Partners, district offers an eclectic mix of clothing, restaurants, and other Santa Monica Boulevard, and the Avenues of Art and Design and International Lease Finance Corporation. specialty retail. along Robertson, Melrose, and Beverly Boulevard. | 14 BRENTWOOD COUNTRY CLUB
BUNDY DR
15 | FINANCIAL SECTION OVERVIEW 04
| 16 INVESTMENT SUMMARY
11964 Kiowa Ave Property Address: Los Angeles, CA 90049 Number of Units: 18 Year Built: 1968 APN: 4265-012-034 Gross Sq. Ft.: 19,026 Average S.F. Per Unit: 1,057 Lot Size (Acres): 0.33 Density: 55
CURRENT MARKET OFFERING PRICE/UNIT PRICE/FOOT PRICE CAP RATE GRM CAP RATE GRM
$9,000,000 $500,000 $473.04 2.93% 18.83 4.27% 14.82
UNIT MIX TOTAL UNIT UNIT MIX CURRENT CURRENT MARKET MARKET RENT UNITS MIX % AVG. RENT MONTHLY RENT MONTHLY RENT 12 1+1 67% $1,934 $23,212 $2,500 $30,000
4 2+2 22% $2,666 $10,664 $3,200 $12,800
2 3+2 11% $2,878 $5,755 $3,800 $7,600
Scheduled Monthly Rent: $39,631 $50,400
Scheduled Yearly Rent: $475,572 $604,800
17 | ANNUAL OPERATING SUMMARY
CURRENT MARKET
Scheduled Gross Income: $475,572 $604,800 27% Upside Less Vacancy Reserve: $14,267 3.0% $18,144 3.0% Laundry Income: $2,400 $2,400 Gross Operating Income: $463,705 $589,056 Expenses: $200,150 42.1% $205,164 33.92% * Net Operating Income: $263,555 $383,892 Pre-Tax Cash Flow: $263,555 2.93% $383,892 4.27% ** Plus Principal Reduction: $0 $0 Total Return Before Taxes: $263,555 2.93% $383,892 4.27% ** * As a percent of Scheduled Gross Income ** As a percent of Down Payment
PRO FORMA ANNUAL OPERATING EXPENSES
PRO FORMA ESTIMATES % OF SGI CURRENT PER UNIT MARKET PER UNIT % OF SGI
Property Taxes 1.196% x Sale Price 23.21% $107,644 $5,980 $107,644 $5,980 17.8% Off-Site Management 4.0% x GOI 4.00% $18,548 $1,030 $23,562 $1,309 3.9% Insurance $492 X Units 1.91% $8,858 $492 $8,858 $492 1.5% Reserves $250 x Units 0.97% $4,500 $250 $4,500 $250 0.7% Payroll $1,389 x Units 3.83% $17,753 $986 $17,753 $986 2.9% Repairs & Maintenance $1,281 x Units 4.97% $23,057 $1,281 $23,057 $1,281 3.8% Landscaping $184 x Units 0.71% $3,308 $184 $3,308 $184 0.5% Utilities $756 x Units 2.93% $13,608 $756 $13,608 $756 2.3% Trash $160 x Units 0.62% $2,875 $160 $2,875 $160 0.5% Total Expenses 43.16% $200,150 $11,119 $205,164 $11,398 33.9%
CURRENT PER UNIT % OF SGI Non-controllable expenses: Taxes, Ins., Reserves: $121,002 $6,722 25.4% Total Expense without Taxes $92,506 $5,139 19.45%
| 18 RENT ROLL
# UNIT MIX RENT MARKET RENT
1 1 3+2 $3,795 $3,800
2 2 1+1 $2,095 $2,500
3 3 2+2 $2,466 $3,200
4 4 1+1 $2,095 $2,500
5 5 1+1 $2,095 $2,500
6 6 1+1 $2,295 $2,500
7 7 1+1 $1,596 $2,500
8 8 2+2 $2,650 $3,200
9 9 1+1 $1,897 $2,500
10 10 3+2 $1,960 $3,800
11 11 1+1 $1,760 $2,500
12 12 2+2 $2,698 $3,200
13 13 1+1 $1,583 $2,500
14 14 1+1 $1,698 $2,500
15 15 1+1 $1,521 $2,500
16 16 1+1 $2,295 $2,500
17 17 2+2 $2,850 $3,200
18 18 1+1 $2,282 $2,500
Totals $39,631 $50,400 18 Averages $2,202 $2,800
19 | SALES COMPS
3
4
2
1
| 20 YEAR PRICE PER PRICE PER ACTUAL PROPERTY SALE PRICE BLDG SF # OF UNITS GRM SALE DATE BUILT SF UNIT CAP RATE
11964 Kiowa Ave 1968 $9,000,000 19,026 18 $473.04 $500,000 2.93% 18.83 Los Angeles, CA 90049
11815 Mayfield Ave 1 1967 $7,737,500 15,920 15 $486.02 $515,833 6/26/18 Los Angeles, CA 90049
11818 Darlington Ave 2 1967 $7,737,500 15,920 15 $486.02 $515,833 6/26/18 Los Angeles, CA 90049
11727 Dorothy St 1966 $4,560,000 10,239 10 $445.36 $456,000 8/17/18 3 Los Angeles, CA 90049
11667 Goshen Ave 1961 $3,800,000 9,024 10 $421.10 $380,000 3.82% 16.26 9/20/18 4 Los Angeles, CA 90049
AVERAGES $459.63 $466,917 3.82% 16.26
21 | RENT COMPS
2
4
3
1
| 22 ONE BEDROOM UNITS
CURRENT AVG PROPERTY UNITS YEAR BUILT UNIT MIX RENT
11964 Kiowa Ave Los Angeles, CA 18 1968 1+1 $1,934
11842 Kiowa Avenue 8 1959 1+1 $2,600 1 Los Angeles, CA
867 Bringham Avenue 6 1957 1+1 $2,495 2 Los Angeles, CA
11640 Kiowa Avenue 1+1 $2,495 3 Los Angeles, CA 52 1974
922 S Barrington Avenue 1+1 $2,495 4 Los Angeles, CA 30 1969
AVERAGES $2,521
23 | RENT COMPS
4
2 3
1
| 24 TWO BEDROOM UNITS CURRENT AVG PROPERTY UNITS YEAR BUILT UNIT MIX RENT
11964 Kiowa Ave Los Angeles, CA 18 1968 2+2 $2,666
11640 Kiowa Avenue 2+2 $3,395 1 Los Angeles, CA 52 1974
633 S. Barrington Avenue 27 1986 2+2 $3,200 2 Los Angeles, CA
11698 Chenault Street 3 2+1.5 $3,195 Los Angeles, CA 15 1963
125 N Barrington Avenue 4 2+2 $3,295 Los Angeles, CA 30 1967
AVERAGES $3,271
25 | 11957 Darlington Avenue Los Angeles, CA 11928 Darlington Avenue Los Angeles, CA 1105 S Barrington Avenue Los Angeles, CA 11692 Chenault Street Los Angeles, CA
RENT COMPS
4
3
2 1
| 26 11957 Darlington Avenue Los Angeles, CA 11928 Darlington Avenue Los Angeles, CA 1105 S Barrington Avenue Los Angeles, CA 11692 Chenault Street Los Angeles, CA
THREE BEDROOM UNITS CURRENT AVG PROPERTY UNITS YEAR BUILT UNIT MIX RENT
11964 Kiowa Ave Los Angeles, CA 18 1968 3+2 $2,878
1 11957 Darlington Avenue Los Angeles, CA 6 1965 3+2 $3,595
2 11928 Darlington Avenue Los Angeles, CA 20 1965 3+3 $3,895
1105 S Barrington Avenue 3 Los Angeles, CA 8 1955 3+2 $3,995
11692 Chenault Street 4 3+2 $3,795 Los Angeles, CA 33 1959
AVERAGES $3,820
27 | Confidentiality Agreement & Disclaimer This Offering Memorandum contains select information pertaining to the business and affairs of the Property located at 11964 Kiowa Avenue, Los Angeles, CA 90049 (“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.
| 28 ™ 11964 Kiowa LOS ANGELES, CA LISTED BY:
DANIEL WITHERS SVP & Senior Director - Multifamily Direct +1 818 923 6107 Mobile +1 310 365 5054 [email protected] License No. 01325901 (CA)
CO-LISTED WITH:
MARCUS & MILLICHAP Jeffery Louks
Direct + 1 818 212 2780 Mobile + 1 310 941 5899 Fax (818) 212 2627 [email protected] License No. 00908473
29 |