Enduring Earning Potential in L.A. Hotspot
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4252 Crenshaw Boulevard | Leimert Park, CA Enduring Earning Potential in L.A. Hotspot KITTY WALLACE Senior Executive Vice President Lic. 01218779 +1 310 622 1900 [email protected] Colliers International 11601 Wilshire Boulevard., Suite 1950 Los Angeles, CA 90025 EXECUTIVE SUMMARY As exclusive advisor to the seller, Colliers International is pleased to present the opportunity to acquire a rare new construction multifamily property at 4252 Crenshaw Boulevard in Leimert Park, Los Angeles, California. The property, well situated immediately adjacent to a future stop for the highly anticipated Crenshaw/LAX Metro light rail line, benefits from a central Los Angeles location in one of the hottest up-and-coming neighborhoods in the city. Within easy commuting distance to major employment centers of Downtown Los Angeles and Culver City, the property attracts those seeking a quality and contemporary living experience at a discount to pricier West L.A. and Downtown markets without compromising class. Its residents appreciate the property’s proximity to Baldwin Hills Crenshaw Plaza, as well as countless independent neighborhood gems. The property’s relative quality, central location and unmatched opportunity for long-term earning potential together promise to provide investors with stability and excellent upside. 2 | 4252 Crenshaw Offering Memorandum TABLE OF CONTENTS 04 The Highlights 06 The Property 10 The Market 20 The Numbers Colliers International | 3 INVESTMENT HIGHLIGHTS STRONG MULTIFAMILY FUNDAMENTALS • Submarket occupancy averaged 97.8% over the past five years. • Asking rents in Leimert Park are expected to grow by an average of 7.5% over the next three years. • Home values in the area have risen 11.5% over the past year. • The population is 1,210,765 with an employee base of 586,019 within a five-mile radius of the property. SUPERIOR ACCESSIBILITY • The property will be just a one-minute walk from the Leimert Park Station for the Crenshaw Metro Line, connecting residents to LAX and the South Bay. • At least seven bus stops are located within walking distance of the property, offering easy access to the surrounding area. • Just two miles from the 10 Freeway and five miles from the 405 Freeway, the property benefits from easy access to two of the most-used thoroughfares in Los Angeles. 2020 CONSTRUCTION IN IMPROVING MARKET • 4252 Crenshaw is Leimert Park’s first and only new construction apartments in more than 30 years. • The four-level construction building sits on approximately 24,829 square feet of land. • Newly built with air conditioning, WiFi, rooftop decks and outdoor patios featuring BBQs and dog runs, the property features pricing similar to aging neighboring buildings. 4 | 4252 Crenshaw Offering Memorandum Colliers International | 5 PROPERTY OVERVIEW PROPERTY SUMMARY 4252 Crenshaw Boulevard ADDRESS Los Angeles, CA 90008 LOT SIZE 24,829 SF LAND ACRES 0.57 AC BUILDINGS 1 NO. OF FLOORS 4 + Rooftop Deck TOTAL UNITS 111 TOTAL BUILDING SF 46,898 SF PARKING SPACES Street YEAR BUILT 2020 Quality New Construction Multifamily Opportunity in Promising Pocket of Los Angeles 6 | 4252 Crenshaw Offering Memorandum BUILDING AMENITIES • Rooftop Lounge with Fire Pit • Ground Level Backyard Garden IN-UNIT FEATURES • BBQ Area with Entertainment Space Light-Filled Homes with 9’ Ceilings and Open • Outdoor Games Sweeping Views Floor Plans • Citrus Grove • Tech Connect Lounge & Clubhouse Energy Efficient Black Vinyl Plank Floors • Community Room Fridges • Business Center and Lobby Lounge • Spectrum High-Speed Internet Quartz Countertops Keyless Entry (FOB) • Private Dog Run/Pet-Friendly • Live/Work Space • Package Storage and Amazon Lockers Spacious Bathrooms with High Speed WiFi • Resident Bike Storage Area Tub and Shower • Full Time Property Manager and Maintenance • Secured Access with Video Monitoring Patio and Balcony Space Air Conditioning for Select Homes • Elevator Access to Each Floor • Card Operated Laundry • Public Transportation Colliers International | 7 STUDIO 8 | 4252 Crenshaw Offering Memorandum ONE BEDROOM Colliers International | 9 LOCATION OVERVIEW The property at 4252 Crenshaw Boulevard is situated on one of the major thoroughfares of the up-and-coming neighborhood of Leimert Park in Los Angeles. SHOPPING RECREATION 1. Baldwin Hills 1. Museum Of African • Steps away from the entryway for Crenshaw Mall American Art the coming Leimert Park Station on 2. Albertsons 2. Fernando Pullum the Crenshaw/LAX Metro Line 3. Eso Won Books Art Center 4. Staples 3. The Metaphor Club • Five-minute walk to ample 5. Right Choice 4. Leimert Park Plaza amenities, including Baldwin Hills Caribbean Market 5. Barbara Morrison 6. Dawah Bookshop Performing Arts Center Crenshaw Plaza 6. California Jazz and Blues Museum SCHOOLS • Centered between major employment 7. World Stage hubs of Downtown Los Angeles and 1. 42nd Street Performance Gallery Culver City Elementary School 8. Art + Practice 2. Crenshaw Magnet School Exhibition Space • Assigned K-1 schools within 3. Audubon Middle School 9. Vision Theatre walking distance (less than a mile) of the property FOOD & DRINK TRANSIT 1. Swift Cafe 1. Crenshaw / Stocker 2. Post & Beam 2. 43rd / Crenshaw 3. Taco Mell 3. Crenshaw / Homeland 4. Ackee Bamboo 4. Crenshaw/ Vernon 5. Hot and Cool Cafe 5. Vernon/ Leimert 6. Harun Coffee 6. Vernon/ Crenshaw 7. Delicious Southern 7. Leimert Park Station Cuisine 8. Buffalo Wild Wings 10 | 4252 Crenshaw Offering Memorandum 2 LOCAL AMENITIES 8 1 1 2 3 4 1 5 1 5 2 1 2 4 6 7 3 3 3 6 3 8 5 9 7 7 4 6 5 4 6 2 Colliers International | 11 LOS ANGELES Los Angeles County is the most populous county in the United States, with more than 10 million inhabitants as of 2019. As such, it is the largest non– state level government entity in the United States. Its population is larger than that of 41 individual U.S. states. It is the third-largest metropolitan economy in the world, with a Nominal GDP of over $700 billion—larger than the GDPs of Belgium, Norway, and Taiwan. It has 88 incorporated POPULATION & EMPLOYMENT cities and many unincorporated areas and, at 4,083 square miles (10,570 • #1 most populous county in the U.S. km2), it is larger than the combined areas of Delaware and Rhode Island. • +5 million labor force with +244,000 businesses The county is home to more than one-quarter of California residents and is one of the most ethnically diverse counties in the U.S. Its county seat, ECONOMIC DRIVERS Los Angeles, is also California’s most populous city and the nation’s second largest city with about 4 million people. • #1 largest economy in the U.S. • $700 billion GDP in L.A. metro area in 2018 ECONOMIC IMPACT • 26 Fortune 500 headquarters Los Angeles County is commonly associated with the entertainment and digital media industry; all six major film studios—Paramount Pictures, 21st INTERNATIONAL TRADE Century Fox, Sony, Warner Bros., Universal Pictures, and Walt Disney • #1 largest customs district in the U.S. Studios—are located within the county. Numerous other major industries also define the economy of Los Angeles County, including international • #1 in imports, exports and total port tonnage in trade supported by the Port of Los Angeles and the Port of Long Beach, the U.S. music recording and production, aerospace and defense, fashion, and • +$118 billion of total trade in 2019 professional services such as law, medicine, engineering and design services, financial services and more. High-tech sector employment within TOURISM Los Angeles County is 368,500 workers, and manufacturing employment within Los Angeles County is 365,000 workers. • +50 million visitors to L.A. County in 2018 • $288 million generated in L.A. transient occupancy tax in 2018 • 547,000 jobs supported by leisure & hospitality sectors in 2018 12 | Venue Offering Memorandum WEST HOLLYWOOD BEVERLY HILLS 30 Minutes Away 20 Minutes Away BRENTWOOD 25 Minutes Away DOWNTOWN LA CENTURY CITY 20 Minutes Away 20 Minutes Away SANTA MONICA 20 Minutes Away CULVER CITY 15 Minutes Away VENICE INGLEWOOD 25 Minutes Away 15 Minutes Away LAX 15 Minutes Away Colliers International | 13 LEIMERT PARK The center of contemporary African-American art, music and culture in Los Angeles, Leimert Park is a historically rich neighborhood and a premier hub for culture and diversity in Los Angeles. The neighborhood was one of the first planned communities in Southern California, named after developer Walter H. Leimert in 1928. Regarded as a model for urban planning, with car traffic near schools minimized, utility wires hidden from view and characterful tree-lined streets, the community affords residents the opportunity to cherish a friendly small-town environment while maintaining proximity to major employment hubs such as Culver City and Downtown Los Angeles. New developments and improved mass transit options within the city have lately drawn an influx of high-income young professionals to the area. Baldwin Hills Crenshaw Plaza has been approved by the city to undergo a major transformation. Owner Capri Capital Partners, which is marketing the project for sale, has lined up entitlements for a mixed-use complex boasting 941 condos and apartments alongside a 400-room hotel and new offices, restaurants and retail space. In addition, LA Metro’s new Crenshaw Line is expected to be completed in 2021, and will extend from the existing Exposition Line down to LAX. Named one of the top 10 places where L.A. home prices have increased most, according to Curbed Los Angeles as recently as December 2019, the area has seen the median sale price of homes jump 118% over nine years, growing from $334,42 in 2010 to $730,000 in 2019. Serving the area’s increasingly affluent resident base, the city’s main artery is getting an overhaul of trendy boutiques and restaurants, poising the neighborhood to be a premier South L.A.