9-Unit Multifamily Investment Opportunity in West Hollywood CONFIDENTIALITY AGREEMENT
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1035 NORTH GARDNER STREET 9-Unit Multifamily Investment Opportunity in West Hollywood CONFIDENTIALITY AGREEMENT All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to- ac curacy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether CONTENTS written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be PROPERTY DESCRIPTION verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent profession- 04 als. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or EXECUTIVE SUMMARY performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can 12 be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the MARKET OVERVIEW party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should 16 be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property com- plies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Commercial in compliance with all applicable fair MARKET COMPARABLES housing and equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified 22 its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Exclusive Listing Agents: RICH JOHNS NICK ASTRUPGAARD Multifamily Investment Advisor Multifamily Investment Advisor 818.432.1575 323.868.9553 [email protected] [email protected] CALBRE LIC#01432215 CALBRE LIC. #01893466 THEOFFERING KW Commercial is pleased to offer for sale, for the first time in approximately 50 years, 1035 North Gardner Street, a multi-family apartment community located in West Hollywood, CA (90046). 1035 North Gardner Street, consists of 9 apartment units, built in 1956 and including +/- 5,969 SF of improvements and boasting an exceptional unit composition of Six (6) One Bedroom / One Bath, Two (2) Singles and One (1) Two Bedroom / One Bath apartment homes. 1035 North Gardner features large windows for abundant natural light, mature landscaping along walkways for added privacy, onsite Property laundry facilities and parking for 10 total vehicles. The apartment homes are individually metered for gas and Description electrical utilities, thus keeping the owner expenses very low. Select and significant interior upgrades historically includes new stainless appliances, granite countertops, tiled and hardwood floors, wardrobe, lighting and updated bathrooms, making this classic 1950’s building ready for today’s lifestyle. The asset is located close to exceptional area amenities with nearby world-class dining, shopping, entertainment and nightlife venues along the renowned Santa Monica Blvd., Beverly Blvd., and Fairfax Avenues. The property also offers convenient access to business services and major employment centers throughout West Hollywood and the Fairfax District. There is substantial rental upside based on current market rents vs existing rents thus representing a strong long term investment opportunity in a strong Los Angeles location. INVESTMENT HIGHLIGHTS THE OPPORTUNITY: LOCATION: • Available For Sale For The First Time in Over 50 Years Located just one block south of Santa Monica Blvd. and 1035 N Gardner Street between Fairfax Blvd. & La Brea Avenue residents are offered • Exceptional 9 Unit Multifamily in a World-Class West a multitude of restaurants, cafés, shopping and entertainment Hollywood Location West Hollywood venues all of which offer character to the social, cultural and • Excellent Unit Composition with Six (6) One Bedroom - One business life of the economically vibrant and world renowned Bath, Two (2) Single & One (1) Two Bedroom - One Bath CA 90046 West Hollywood. Apartment Homes In an effort to ensure a healthy business community, West • Excellent Opportunity to Attract from a Well-Healed Renter Hollywood has formed three Business Improvement Districts Demographic (BID); the Avenue of Arts and Design, the Sunset Strip Business Association and the West Hollywood Marketing and Visitors • Location Provides Access to Countless Dining, Shopping, Bureau. Nightlife and Entertainment Venues The Avenue of Arts and Design is one of the premier locations • Tandem Parking for 10 Total Vehicles for art, design, restaurants, boutiques, and specialty retail. The Sunset Strip Business Association promotes the area’s unique • Separate Gas and Electrical Metering Provide Low Expenses cultural and entertainment offerings. The West Hollywood • Significant Rental Upside Marketing and Visitors Bureau represents the City’s many luxury hotels. West Hollywood features a vibrant and diverse business community in addition to being convenient to Los Angeles’ other major commercial districts; Beverly Hills, Downtown Los Angeles, and Century City. West Hollywood’s two major industry sectors are Services, Hotels, Motion Pictures, and Health Services and Retail; Restaurants and Bars, Food Stores, and Miscellaneous Retail. Exterior Interior FINANCIAL SUMMARY 1035 N Gardner Street, West Hollywood, CA 90046 MARKET RENT FINANCIAL INDICATORS SOURCE OF INCOME CURRENT RENT Post Renovation Offering Price $2,720,000 # of Units Unit Type Avg. Rent Total Avg. Rent Total 2 Large Single $1,038.46 $3,426.80 $1,595 $3,190 Current CAP 4.0% 1 2 Bed / 1 Bath $1,918.00 $4,743.00 $2,595 $2,595 Market CAP 6.3% 6 1 Bed / 1 Bath $1,634.61 $3,988.00 $2,250 $13,500 Current GRM 16.30 Total Rental Income 13,802.58 $19,285 Market GRM 11.69 Laundry Income Estimate $100 $100 Cost Per Unit $302,222 (building owned) Price per SF $455.69 Total Annual Income 166,830.96 $232,620 Expenses Per Unit -$6,426 Expenses Per Sq Ft ($9.69) EST. ANNUALIZED OPERATING DATA CURRENT MARKET Executive Scheduled Gross Income $166,831 $232,620 Less Vacancy 2.0% ($3,337) 2.0% ($4,652) BUILDING DATA Gross Operating Income $163,494 $227,968 Units 9 Less Expenses -35.4% ($57,832) 25% ($57,832) Summary Year Built 1956 Net Operating Income $105,662 $170,136 Lot Sq Ft 6,373 Bldg Gross Sq Ft 5,969 Parking Spaces 10 NOTATIONS: 1. Repairs & Maintenance: Repairs and Maintenance is underwritten as a pro forma expense of $650 / unit / year / ESTIMATED ANNUALIZED EXPENSES post-renovation. New Property Taxes $40,800 2. Contract Service: Expenses are projected for Pest Control ($75/mo), Landscaping ($75/mo) based on market rates. Utilities (DWP & Gas) $5,400 3. Utilities: Estimated at $600 / unit / year based on market rates. Separately metered for Gas & Electrical utilities. Property Insurance $2,686 4. Real Estate Taxes: Taxes have been underwritten based upon a tax rate of 1.15%. Landscaping $900 5. Property Insurance: Pro Forma insurance expense is based upon $0.45/SF/Year. Repairs & Maintenance $5,850 6. Laundry Equipment: Owned by building / not leased Rental Registration $1,296 Pest Control $900 Total Estimated Expenses $57,832 RENT ROLL 1035 N Gardner Street, West Hollywood, CA 90046 UNIT STATUS UNIT TYPE Current Rent Market Rent Post Renovation 1 Leased One Bed | One Bath $1,235.82 $2,250 2 Vacant-Unrenovated One Bed | One Bath $2,250.00 $2,250 3 Leased Large Single $962.66 $1,595 4 Leased One Bed | One Bath $1,350.52 $2,250 5 Leased Two Bed | One Bath $1,918.00 $2,595 6 Leased One Bed | One Bath $1,781.00 $2,250 7 Leased One Bed | One Bath $1,184.32 $2,250 8 Leased Large Single $1,114.26 $1,595 9 Leased One Bed | One Bath $2,006.00 $2,250 $13,802.58 $19,285 City of West Hollywood With a walk score of 94, the property is within close proximity to popular destinations such as The Hudson, Connie & Ted’s, Trader Joe’s, 8000 Sunset, and countless local amenities along Santa Monica Boulevard, Sunset Boulevard, and La Cienega Boulevard.