$3,450,000
Prime Northwest Inglewood Location Major Value-Add Opportunity
604 Evergreen Street Inglewood, CA 90302 Copyright © 2020 Transwestern. California Table of Contents Brokerage License #01263636. The information in this offering memorandum was gathered 3 Investment Summary 17 Financial Summary by Transwestern from sources believed reliable. Transwestern has not verified the ▪ The Opportunity ▪ Pricing, Property and Operating information and makes no guarantee, warranty ▪ Property Description Statement Summary or representation about it. It is the potential ▪ Exterior and Interior Photos ▪ Rent Roll buyer’s responsibility to independently confirm ▪ Aerial Photos ▪ Sales Comparables its accuracy and completeness. Any projections, ▪ Sales Comparables Map opinions, assumptions or estimates used are 12 Market Overview ▪ Rent Comparables for example only and do not represent the ▪ Apartment Market Overview ▪ Rent Comparables Map current or future performance of the property. ▪ Silicon Beach Tech and Entertainment Landscape Potential buyers and their advisors should conduct a careful, independent investigation of ▪ Major Employers and Places of Interest the property to determine to their satisfaction ▪ Nearby Developments the suitability of the property for their needs. ▪ Demographics
John Swartz Josh Kaplan Troy Lucero Transwestern Real Estate Services Managing Director Managing Director Senior Associate 601 S. Figueroa St, Suite 3650 213.430.2526 213.430.2538 213.457.1656 Los Angeles, CA 90017 [email protected] [email protected] [email protected] 213.624.5700 CA Lic 01873487 CA Lic 01934177 CA Lic 02015701 transwestern.com Investment Summary
Transwestern as the exclusive listing agent is pleased to present the opportunity to acquire 604 Evergreen Street, an 11-unit plus one non-conforming unit apartment building located in one of the most desirable parts of Inglewood. The property is located in the Northwest part of Inglewood, South of Centinela, less than a mile north of the 405 freeway and just east of La Cienega Blvd. on the border of Westchester.
The Opportunity
▪ Rare pride-of-ownership building that presents significant value-add opportunity
▪ Current rents are over 59% below market
▪ Unit #6 (1bed+1bath) will be delivered vacant
▪ Classic 1960’s architecture provides excellent platform for renovation Offering Price: $3,450,000 ▪ Excellent unit mix – five 1bed+1bath units, four 2bed+2bath units, one 3bed+2bath unit, one 3bed+2bath townhome unit, and one non- $287,500 Per Unit | $301 Per Square Foot conforming 1bed+1bath unit.
▪ Ample parking – 20 total parking spaces 16.1 Current Gross Rent Multiplier 3.78% Current Capitalization Rate
3 Property Description
604 Evergreen St is an 11-unit plus one non-conforming unit apartment building built in 1963. The unit mix consists of five 1bed+1bath units, four 2bed+2bath NUMBER OF UNITS LAND SIZE units, one 3bed+2bath unit, one large 3bed+2bath two-story townhouse unit, and 11 units and 1 non-conforming unit +10,232 SF (Per Title Pro - Buyer to one non-conforming 1bed+1bath unit. The property is a two-story, 11,444-square- Five 1bed+1bath verify) foot walk-up building with wood frame and stucco construction situated on a Four 2bed+2bath 10,232-square-foot lot. One 3bed+2bath ZONING INR3YY (Per Title Pro - Buyer to verify) Eleven of the units have very large floor plans and a private patio or balcony One 3bed+2bath townhouse with storage areas. All of the two-bedroom units feature large bedrooms, large One non-conforming 1bed+1bath PARKING kitchens, separate dining areas, spacious living rooms, and ample storage and YEAR BUILT 20 total spaces closet space. The front unit was originally built for the owner to occupy and 1963 ASSESSOR PARCEL NUMBER functions as a separate large 3bed+2bath two-story townhome with a double- BUILDING SIZE 4017-003-031 door entrance that faces Evergreen St. Features include a large living room with +11,444 SF (Per Certificate of plenty of windows for natural light and shutters for privacy on the first floor, a huge Occupancy - Buyer to verify) condo-level kitchen with all stainless-steel appliances (excluding the refrigerator), central A/C and heat, and a private enclosed patio area accessible through the dining area. The exterior has been recently painted and the entire building has also been re-piped to copper plumbing.
Parking is provided on-site with 20 spaces comprised of 14 single spaces enclosed by electric garage doors, and three tandem spaces without garage doors. Every unit has access to a storage locker located in the garage. Units are separately metered for electricity and gas, and the landlord pays for water and trash. The property also includes a laundry room with one washer and dryer provided through a lease with a laundry company.
4 Property Description
Property Location 604 Evergreen is situated between Centinela Avenue and Florence Avenue, just north of the 405 freeway. Tenants will enjoy the property location due to its proximity to the new tech hub of Los Angeles, Silicon Beach, which is defined as the coastal strip from Santa Monica to Playa Del Rey. The property is less than five miles from Playa Vista, which has emerged over the past several years as one of the most desired corporate addresses and residential neighborhoods in all of Southern California. Due to technology and media companies migrating to Playa Vista from other parts of Los Angeles, Playa Vista has become a distinct hub for some of the most well-known companies in technology and media including Google, Facebook, Microsoft, Sony Computer Entertainment, Yahoo!, Omnicom, and countless others. The property is a short distance to Los Angeles International Airport, Loyola Marymount University, Inglewood High School, and the new SoFi Stadium, home to the Los Angeles Rams and Los Angeles Chargers. The short distance to the 405 freeway also gives tenants access to all of the local major employment centers including Downtown Los Angeles, West Los Angeles, Playa Vista and Playa Del Rey.
5 Exterior Photos
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9 Aerial View Facing Santa Monica
LA CIENEGA BLVD
10 SoFi Stadium
LA Forum
Aerial View Facing SoFi Stadium
LA CIENEGA BLVD
11 Westridge-Canyonback Wilderness Pk j ¨¦§5 Topanga State Park 405 Topanga ¨¦§ j Alhambra West Hollywood
£¤101 Fernwood Market Overview Rosemead Beverly Hills I-10 Express Ln UV27 ¨¦§10 Monterey Park Riviera Brentwood Park LosLos Angeles Angeles Apartment Market Overview j Pacific Palisades Although vacancy levels were up significantly for brand-new construction Topanga Beach apartment units in Los Angeles County during Second Quarter 2020, accordingj UV1 to Costar, the vacancy rate for theEast majority Los Angeles of the apartmentUV60 stock remained ¨¦§10 below 5%. DespiteUV60 the current economic issues with the coronavirus pandemic, Culver City Costar also reported that overall market rent growth Montebellofor the county is only down Santa Monica 1.2% for 2020 year to date. Los Angeles County currently has 25,440 units under construction, of which 8,000 are expected to be delivered this year.
Inglewood Submarket Overview Los Angeles Located Huntingtonin South West Park Los Angeles, Inglewood is bordered by LaderaPico Rivera Heights to Evergreen St Playa Vista the north, Westchester and Playa del Rey to the west, Hawthorne to the south, and El Segundo to the south west. Due toBell its Gardens proximity to major points of interest Inglewood such as Los Angeles International Airport (LAX), Venice Beach, and Santa Monica, and El Segundo,South Inglewood Gate has seen considerably more interest in recent years as adjacent areas such as Playa Vista and Culver City have emerged as major Los Angeles Int'l Airport Westmont Silicon Beach employment hubs on the Westside.Downey In addition, Inglewood is seeing billions of dollars in investment and development activity with projects ranging from a complete renovationLynwood of the Hollywood Park and Casino, to the new SoFi Stadium being constructed for the LA Rams and LA Chargers and the proposed Hawthorne Pacific Ocean NBA stadiumWillowbrook and practice facility for the Los Angeles Clippers, expectNorwalk Inglewood to attract even more interest from tenants in the years ahead. 405 ¨¦§ Lawndale Compton
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a S V apartment complex linked to the Japanese real Inglewood, California for the Los Angeles Clippers estate development firm Sanei Architecture. of the National Basketball Association. The arena The project is within walking distance of Metro’s would be located just south of SoFi Stadium, the Crenshaw/LAX line. home of the NFL’s Los Angeles Rams and Los Angeles Chargers, and the Hollywood Park development. In Parallel and Icon Townhomes addition to the 18,000 seat arena, the venue would Currently under construction by Atlanta-based Pulte also include a practice facility, sports medicine clinic, Homes, the 105 detached townhomes will offer team offices, retail space and a large outdoor plaza three- and four-bedroom floor plans with pricing with basketball courts that are open to the public. expected to start in the mid $800,000s.
Residences at Hollywood Park 15 2019 POPULATION Demographics
38,888 (+0.3% since 2010) 1 MILE 3 MILE 5 MILE POPULATION # % CHANGE # % CHANGE # % CHANGE 2010 Census 37,790 235,467 797,281 2019 Estimate 38,888 0.31% 247,410 0.54% 831,990 0.46% 2024 Projection 39,470 0.30% 252,048 0.37% 848,185 0.39% 2024 POPULATION HOUSEHOLD # % # % # % 2010 Census 16,174 84,411 287,798 39,470 (+0.3% est. over 2019) 2019 Estimate 16,503 0.22% 88,756 0.54% 298,745 0.40% 2024 Projection 16,662 0.19% 90,201 0.32% 303,930 0.34% ETHNICITY/RACE # % # % # % White 9,100 23.4% 78,676 31.8% 288,701 34.7% Black 20,105 51.7% 87,583 35.4% 242,109 29.1% MEDIAN AGE Asian 2,333 6.0% 14,845 6.0% 58,239 7.0% Hispanic Origin (Any Race) 9,683 24.9% 100,696 40.7% 366,908 44.1% 37.6 years old Other 7,311 18.8% 66,553 26.9% 243,773 29.3% EDUCATION # % # % # % Less than 9th grade 1,140 4.2% 16,524 9.9% 63,647 11.3% Some High School 1,194 4.4% 13,019 7.8% 44,496 7.9% High School Graduate 3,312 12.2% 26,205 15.7% 102,510 18.2% GED/Alternative Credential 407 1.5% 2,837 1.7% 9,012 1.6% EDUCATION Some College, no degree 7,303 26.9% 39,057 23.4% 120,534 21.4% Associate Degree 2,470 9.1% 11,183 6.7% 34,921 6.2% 68% have bachelor’s or higher Bachelor's Degree 6,597 24.3% 34,717 20.8% 115,465 20.5% Graduate/Professional Degree 4,751 17.5% 23,367 14.0% 72,658 12.9% WORKPLACE & INCOME # % # % # % Median Household Income $63,251 $61,478 $58,880 Average Household Income $92,432 $93,259 $89,003 AVERAGE INCOME All Employees 21,585 122,671 415,542 White Collar 15,239 70.6% 76,179 62.1% 251,818 60.6% $92,432 Blue Collar 2,569 11.9% 19,259 15.7% 70,227 16.9% Services 3,777 17.5% 27,233 22.2% 93,081 22.4% Daytime Population 32,017 308,349 837,751 Financial Summary
PRICING SUMMARY OPERATING STATEMENT SUMMARY Price $3,450,000 REVENUE IN-PLACE PRO FORMA Price Per Unit $287,500 Gross Potential Rent $213,144 $338,400 Price Per SF $301 Vacancy (3%) (10,152) Current NOI $130,438 Net Rental Income $213,144 $328,248 Pro Forma NOI $240,937 Other Revenue 1,600 1,600 Cap Rate - Current 3.78% Effective Gross Income $214,744 $329,848 Cap Rate - Pro Forma 6.98% ESTIMATED EXPENSES Per Unit Per Unit GRM - Current 16.1x Administrative $1,200 $100 $1,200 $100 GRM - Pro Forma 10.1x Repairs & Maintenance 6,000 500 6,000 500 Turnover Expense 1,800 150 1,800 150 PROPERTY SUMMARY Management Fee (4%) 8,590 716 13,194 1,099 Year Built 1963 Utilities 12,000 1,000 12,000 1,000 Total Units 12 Contract Services 1,500 125 1,500 125 Building Area 11,444 SF Property Taxes (1.27%) 43,826 3,652 43,826 3,652 APN# 4017-003-031 Direct Property Tax Assessment 2,790 233 2,790 233 Land Area 10,232 SF Insurance 4,200 350 4,200 350 Zoning INR3YY CapEx Reserves 2,400 200 2,400 200 Parking 14 Single Garage Spaces Total Expenses $84,306 $7,026 $88,911 $7,409 3 Open Tandem Spaces Net Operating Income $130,438 $240,937 Expense Ratio (% of EGI) 39% 27%
RENT ROLL SUMMARY CURRENT PRO FORMA IN-PLACE TOTAL SCHEDULED TOTAL SCHEDULED AVERAGE MONTHLY GROSS AVG PRO MONTHLY GROSS LOSS TO LOSS TO NO. UNITS FLOOR PLAN RENT INCOME INCOME FORMA RENT INCOME INCOME LEASE LEASE % 6 1B+1BA $1,413 $8,480 $101,760 $2,000 $12,000 $144,000 $42,240 42% 4 2B+2BA $1,316 $5,265 $63,180 $2,450 $9,800 $117,600 $54,420 86% 2 3B+2BA $2,009 $4,017 $48,204 $3,200 $6,400 $76,800 $28,596 59% Totals/WTD Avg. 12 $1,480 $17,762 $213,144 $2,350 $28,200 $338,400 $125,256 59%
17 Rent Roll
CURRENT PRO FORMA
OCCUPIED / SCHEDULED SCHEDULED UNIT VACANT UNIT TYPE CURRENT RENT GROSS INCOME MARKET RENT GROSS INCOME LOSS TO LEASE #1 Occupied 3B+2BA $2,163 $25,956 $3,200 $38,400 $1,037 #2 Occupied 1B+1BA $1,184 $14,208 $2,000 $24,000 $816 #3 Occupied 2B+2BA $1,390 $16,680 $2,450 $29,400 $1,060 #4 Occupied 2B+2BA $1,545 $18,540 $2,450 $29,400 $905 #5 Occupied 1B+1BA $1,525 $18,300 $2,000 $24,000 $475 #6 Vacant 1B+1BA $2,000 $24,000 $2,000 $24,000 $0 #7 Occupied 1B+1BA $1,313 $15,756 $2,000 $24,000 $687 #8 Occupied 2B+2BA $1,030 $12,360 $2,450 $29,400 $1,420 #9 Occupied 2B+2BA $1,300 $15,600 $2,450 $29,400 $1,150 #10 Occupied 1B+1BA $1,133 $13,596 $2,000 $24,000 $867 #11 Occupied 3B+2BA $1,854 $22,248 $3,200 $38,400 $1,346 #121 Occupied 1B+1BA $1,325 $15,900 $2,000 $24,000 $675 Totals 12 11,444 SF $17,762 $213,144 $28,200 $338,400 $10,438 Loss To Lease % 59%
1 Non-conforming unit
Rent Roll Summary CURRENT PRO FORMA AVG. IN-PLACE TOTAL MONTHLY AVG. PRO TOTAL MONTHLY NO.UNITS OCCUPANCY % FLOOR PLAN RENT INCOME FORMA RENT INCOME LOSS TO LEASE 6 50% 1B+1BA $1,413 $8,480 $2,000 $12,000 $3,520 4 33% 2B+2BA $1,316 $5,265 $2,450 $9,800 $4,535 2 17% 3B+2BA $2,009 $4,017 $3,200 $6,400 $2,383 Total/WTD Avg. 100% 12 $1,480 $17,762 $2,350 $28,200 $10,438 Gross Potential Income $213,144 $338,400 $125,256
18 Sales Comparables
YEAR CAP $ PER BLDG AVG # OF PROPERTY ADDRESS BUILT SALE DATE SALE PRICE RATE GRM $PSF UNIT SF UNIT SF UNITS
217 E Hazel St 1964 Nov-2019 $3,100,000 4.40% 15.3 $348 $387,500 8,898 1,112 8 Inglewood, CA 90302
614 Hill St 1960 Jun-2019 $1,515,000 4.62% 14.6 $254 $303,000 5,960 1,192 5 Inglewood, CA 90302
144 W Hillsdale St 1964 Jun-2019 $1,650,000 N/A 15.3 $338 $275,000 4,876 813 6 Inglewood, CA 90302
909 W Beach Ave 1962 Oct-2018 $2,450,000 N/A N/A $429 $306,250 5,709 714 8 Inglewood, CA 90302
727 W Hyde Park Blvd 1989 Sep-2018 $1,825,000 4.05% 15.4 $333 $304,167 5,478 913 6 Inglewood, CA 90302
TOTAL / AVERAGE $10,540,000 4.35% 15.2 $341 $319,394 30,921 937 33
604 EVERGREEN ST 1963 $3,450,000 3.78% 16.1 $301 $287,500 11,444 954 12
19 S Verdun Ave
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PROPERTY ADDRESS UNIT TYPE RENT COMMENTS
127 W 64th Pl 1B+1BA $2,095 Fully remodeled unit, hardwood floors, freshly painted, ceiling fans, stainless-steel appliances
Hardwood laminate flooring, renovated kitchen, stainless-steel appliances, recessed lighting, 614 Hill St 1B+1BA $1,900 ceiling fan, freshly painted
New flooring and windows throughout, custom cabinetry, brand new stainless steel appliances 720 N Market St 2B+2BA $2,550 and large amounts of storage, quartz counter tops, recessed lighting, controlled access
Hardwood flooring, ceiling fans, stainless-steel kitchen appliances, tile bathroom, controlled 916 W Beach Ave 2B+2BA $2,350 access
127 W 64th Pl 3B+2BA $3,495 Fully remodeled unit, hardwood floors, freshly painted, ceiling fans, stainless-steel appliances
Stainless-steel appliances, tons of cabinets and counter tops, washer and dryer in the garage, 539 Hyde Park Pl 3B+2BA $3,095 large master bedroom, hardwood floors
SUMMARY SUBJECT UNIT TYPE # OF UNITS AVG RENT PROPERTY 1B+1BA 2 $1,998 $2,000 2B+2BA 2 $2,450 $2,450 3B+2BA 2 $3,295 $3,200 21 S Verdun Ave
W nd St Ladera Heights AveBrea La S
Braddock Dr Windsor Hills
W th St
Culver Blvd Hyde Park
Washington Blvd Overhill Dr Mesmer Ave
Marina del Rey Braddock Dr W th Pl W th St Admiralty Way
W th St e Van Ness Jefferson Blvd W Centinela Ave 127 W 64th Pl v
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Centinela Ave 539 Hyde Park Pl 916 W Beach Ave 604 Evergreen St Fi i Way Bluff Creek Dr W st St Playa Vista Hyde Park Blvd W Florence Ave ¦¨§ 614 Hill St W th St N La Brea Ave720 N Market St Ballona Wetlands cological Reserve j W th St
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¦¨§ H e ¨ Main St S La Cienega Blvd Hawthorne Blvd Los Angeles Multifamily Investment Group
The information provided herein was obtained from sources John Swartz Josh Kaplan Troy Lucero Transwestern believed reliable; however, Transwestern makes no guarantees, Managing Director Managing Director Senior Associate 601 S. Figueroa St, Suite 3650 warranties or representations as to the completeness 213.430.2526 213.430.2538 213.457.1656 Los Angeles, CA 90017 of accuracy thereof. The presentation of this property is [email protected] [email protected] [email protected] 213.624.5700 submitted subject to errors, omissions, change of price or conditions, prior to sale or lease, or withdrawal without notice. CA Lic 01873487 CA Lic 01934177 CA Lic 02015701 transwestern.com Copyright © 2020 Transwestern. CA Lic 01263636.