VAN NUYS BLVD KEWEN AVE Purpose of Providing Tenant Lessee Information About This Listing to Prospective Customers

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VAN NUYS BLVD KEWEN AVE Purpose of Providing Tenant Lessee Information About This Listing to Prospective Customers 13476 VAN NUYS PACOIMA, CA A UNIQUE OPPORTUNITY TO ACQUIRE A MIXED USE RETAIL / RESIDENTIAL ASSET ON A MAJOR COMMERCIAL CORRIDOR IN PACOIMA, CA NON-ENDORSEMENT EXCLUSIVELY LISTED BY AND DISCLAIMER NOTICE CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & ROSALEEN O’SULLIVAN Millichap and should not be made available to any other person or entity without the Investment Advisor written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only Tel: (818) 212-2792 a preliminary level of interest in the subject property. The information contained herein is Fax: (818) 212-2710 not a substitute for a thorough due diligence investigation. Marcus & Millichap has not [email protected] made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of License: CA 01904175 the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved. (29,420 CPD) NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the VAN NUYS BLVD KEWEN AVE purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. 2 3 1 13476 VAN NUYS BLVD 2 13476 FINANCIAL OVERVIEW VAN NUYS PACOIMA, CA 3 LOCATION OVERVIEW 4 COMPARABLE PROPERTIES 1.5 Miles Proximity 13476 PROPERTY VAN NUYS PACOIMA, CA OVERVIEW A stabilized mixed-use offering on the desirable 13476 Van Nuys Boulevard commercial corridor Marcus and Millichap is pleased to present a stabilized mixed-use offering at 13476 Van Nuys Blvd in the city of Pacoima. The offering consists of VAN NUYS an approximately 7,875 SF commercial complex, including a 5,500 PACOIMA, CA SF single-story retail strip center, two three-bedroom single family homes, and a billboard. The property is fully occupied with five retail tenants and two residential tenants. It features fourteen private parking spaces, including garage parking for the residences. The billboard is on a five year lease. The city of Los Angeles limits the number of allowable billboard locations in the city, making this a rare and valuable source of future income for a new owner. 13476 Van Nuys Blvd is located at the signalized corner of Van Nuys Blvd and Kewen Ave, with traffic counts of +/- 29,420 vehicles per day. The property features 113 square feet of frontage on Van Nuys Blvd, and is located one mile from the 118 Freeway and 5 Freeway intersection. The property benefits from the strong demographics in the local area, including over 34,000 people within a one mile radius and a walk score of 79 (very walkable). The property is priced at a 5.37% cap rate on current income, offering an immediate stabilized income stream to an incoming investor. There is also the possibility for a new owner-user to occupy some of the month to month retail suites with their own business. An owner user occupying at least 51% of the rentable building area can qualify for S.B.A. financing with as little as 10% down payment. The entire lot is zoned C2, offering future development potential to an owner who seeks to one day redevelop the approximately 16,480 SF (0.38 AC) corner. Alternatively, a investor seeking to divide the lot could sell the homes separately to capitalize on immediate upside. 8 9 13476 VAN NUYS PACOIMA, CA INVESTMENT HIGHLIGHTS Stabilized Retail/Residential Mixed Use Investment Priced at 5.37% Cap Rate / 6.12% Pro Forma Five Commercial Retail Tenants, Two Single Family Homes, and a Billboard 0.38 AC Corner Lot Zoned C2 - Excellent Future Development Opportunity E - Commerce Resistant, Service-Based Retail Tenant Mix (29,420 CPD) STRONG SAN FERNANDO VALLEY LOCATION Strong Corner Location on Van Nuys Blvd and Kewen Ave in Pacoima Traffic Counts of +/- 29,420 Vehicles per Day along Van Nuys Boulevard VAN NUYS BLVD Located in the Heart of Pacoima’s Revitalization Plan Area KEWEN AVE Direct and convenient access to Ventura (101) Freeway, which is the main freeway throughout the San Fernando Valley Central San Fernando Valley Neighborhood with high population density 10 11 Stabilized Retail / Residential Mixed Use Investment Strong San Fernando Submarket Ideal Retail Owner User Opportunity with Future Development Potential 12 13 13476 VAN NUYS PACOIMA, CA 14 15 16 RESIDENTIAL PHOTOS 17 PROPERTY OVERVIEW PROPERTY INFORMATION 13476 Van Nuys Blvd Address Pacoima, CA 91331 Price $2,050,000 Down Payment $820,000 (45%) Residential Units 2 13476 Commercial Suites 7 Price / SF $260.28 Rentable SF 7,875 SF VAN NUYS PACOIMA, CA Lot Size 0.38 Acres VAN NUYS BLVD Year Built 1951 RETURNS KEWEN AVE Current Year 1 Cap Rate 5.37% 6.12% Cash-on-Cash 3.59% 5.48% 18 RENT ROLL INFORMATION - COMMERCIAL TENANT TYPE SUITE NO. SF % BLDG LEASE TERM RENT RENT/SF/YR RENEWAL OPTIONS Beauty Salon Retail 13480 900 11.43% 9/1/21 $1,700 $22.67 3% Annual CPI Increases Traffic School Retail 13482 900 11.43% MTM $1,447 $19.29 3% Annual CPI Increases Church Retail 13484 1,400 17.78% MTM $1,900 $16.29 3% Annual CPI Increases Optical Lens Retail 13486-A 900 11.43% 10/1/19 $1,450 $19.33 3% Annual CPI Increases Barber Retail 13486-B 900 11.43% 10/1/19 $1,450 $19.33 3% Annual CPI Increases Church Retail 10568 500 6.35% MTM $1,200 $28.80 3% Annual CPI Increases Billboard Retail - - - 1/1/23 $2,100 - - Total 5,500 $9,322 RENT ROLL INFORMATION - RESIDENTIAL UNIT TYPE SF CURRENT RENT RENT / SF POTENTIAL RENT RENT/SF Front 3 Bed / 2 Bath 1,116 $1,800 $1.61 $2,200 $1.97 Rear 3 Bed / 2 Bath 1,259 $1,750 $1.39 $2,200 $1.75 Total 2,375 $3,550 $1.49 $4,400 $1.85 NOTES 1. Unit 13486 is subdivided. Barber is month to month. 20 21 2. Rear house is Section 8. FINANCIAL SUMMARY - INVESTMENT OPERATING DATA INCOME CURRENT YEAR 1 OFFERING PRICE CURRENT CAP RATE Multfamily $2,050,000 5.37% Gross Scheduled Rent $42,600 $54,384 Vacancy 3% $1,278 3% $1,632 Effective Gross Income $41,322 $52,752 PROPERTY INFORMATION Retail Price $2,050,000 Gross Scheduled Rent $111,864 $115,164 Down Payment (45%) $820,000 Vacancy 5% $5,593 5% $5,758 Effective Gross Income $106,271 $109,406 No. of Residential Units 2 No. of Commercial Suites 7 Combined EGI $147,593 $162,158 Price Per SqFt $260.28 Less: Expenses $37,542 $36,604 Lot Size (Acres) 0.38 Acres Net Operating Income $110,051 $125,554 Rentable SF 7,875 Debt Service ($80,593) ($80,593) Year Built/Renovated 1951 Net Cash Flow After Debt Service $29,457 $44,961 Principal Reduction $17,661 $18,593 FINANCING 1ST LOAN Total Return 5.75% $47,119 7.75% $63,554 Loan Amount $1,230,000 EXPENSES Loan Type New Real Estate Taxes $26,563 $25,625 Interest Rate 5.15% Insurance $3,600 $3,600 Amortization 30 Years Utilities - Combined $987 $987 Year Due 2048 Operating Expenses - Combined $4,392 $4,392 Operating Reserves $2,000 $2,000 Loan information is subject to change. Contact your Marcus and Millichap Capital Corporation representative. Total Expenses $37,542 $36,604 22 23 OWNER-USER ANALYSIS OWNERSHIP Purchase Price $2,050,000 Down Payment $205,000 Loan Amount $1,845,000 Monthly/Yearly Debt Payment $11,056 / $132,673 Principal Reduction $36,685 13476 Annual Operating Expenses $38,027 Annual Income $59,640 VAN NUYS Cost of Ownership $6,198 per month / $1.35 per SF PACOIMA, CA Current market lease rate is approximately Leasing $1.25 - $2.00 / SF LOAN ASSUMPTIONS Interest Rate 5.25% Amortization 25 Year This analysis assumes that a new owner occupies suites 13482, 13484, 13486, and 10568 for a total of 4,600 SF (58% of the rentable building area). Analysis assumes that new owner retains remaining tenants for income, and utilizes S.B.A. financing with 10% down payment. Additional after-tax benefit can be achieved through depreciation of the property and interest deduction on the loan.
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