14316 CHRISTINE DR Whittier, CA 90605
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14316 Christine Dr Whittier, CA 90605 OFFERING MEMORANDUM NON-ENDORSEMENT & 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 & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not 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 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. © 2021 Marcus & Millichap. All rights reserved. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2021 Marcus & Millichap. All rights reserved. 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 purpose of providing tenant lessee information about this listing to prospective customers. SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making. Activity ID #ZAC1030086 OFFICES THROUGHOUT THE U.S. AND CANADA marcusmillichap.com EXCLUSIVELY LISTED BY Kevin J. King Senior Managing Director Investments Office: Long Beach Direct: 562.257.1246 [email protected] Kyle R. Blair Associate Office: South Bay Direct: 562.257.1259 [email protected] DISCLAIMER Any rent or income information in this offering memorandum, with the exception of actual, historical rent collections, represent good faith projections of potential future rent only, and Marcus & Millichap makes no representations as to whether such rent may actually be attainable. Local, state, and federal laws regarding restrictions on rent increases may make these projections impossible, and Buyer and its advisors should conduct their own investigation to determine whether such rent increases are legally permitted and reasonably attainable. TABLE OF CONTENTS S E C T I O N 1 Executive Summary 7 S E C T I O N 2 Property Information 13 S E C T I O N 3 Financial Analysis 19 S E C T I O N 4 Sale Comparables 25 S E C T I O N 5 Market Overview 35 S E C T I O N 1 Executive Summary OFFERING SUMMARY INVESTMENT HIGHLIGHTS 8 | EXECUTIVE SUMMARY OFFERING SUMMARY Listing Price Cap Rate # of Units $1,495,000 3.65% 6 FINANCIAL Listing Price $1,495,000 Down Payment 31% / $463,450 NOI $54,612 Cap Rate 3.65% Total Return 1.78% Price/SF $440.09 Rent/SF $2.28 Price/Unit $249,167 OPERATIONAL Gross SF 3,397 SF # of Units 6 Lot Size 0.21 Acres (9,204 SF) Year Built 1955 EXECUTIVE SUMMARY | 9 1 0 | EXECUTIVE SUMMARY 14316 CHRISTINE DR Whittier, CA 90605 INVESTMENT OVERVIEW Marcus & Millichap is pleased to present a 6-unit apartment building located in Whittier, California. Built in 1955, the subject property consists of 3,397 rentable square feet spread throughout a 9,204 square foot lot. The buildings consist of a total of four 1-bedroom / 1-bathroom units and two 2-bedroom / 1-bathroom units. It has a pitched roof and contains eight parking spots. Owners enjoy the high demand for rentals in a city in Southern California. Tenants enjoy living in the Michigan Park neighborhood where there are many shops, restaurants, cafes, entertainment venues and grocery stores. The city of Whittier continues to progress forward and is currently experiencing major redevelopment. The city is currently evaluating a proposed plan that would allow for the potential development in the city of more than 6,000 new housing units over the next 25 years. Whittier sustains its ability to attract renters due to its strong economy and quality of life. INVESTMENT HIGHLIGHTS GREAT RENTAL MARKET, VACANCY BELOW 3% LOCATED IN THE HEART OF MICHIGAN PARK, ONE OF THE MOST DESIRABLE AREAS OF EAST WHITTIER: MEDIAN RENT 31% HIGHER THAN WHITTIER AVERAGE WHITTWOOD TOWN CENTER AND THE QUAD AT WHITTIER SHOPPING MALL, WITHIN 1 MILE RADIUS OCEAN VIEW ELEMENTARY, EAST WHITTIER MIDDLE SCHOOL, AND LA SERNA HIGHSCHOOL DISTRICT MICHIGAN PARK NEIGHBORHOOD MEDIAN INCOME: $86,618 E X E C U T I V E S U M M A RY | 1 1 S E C T I O N 2 Property Information REGIONAL MAP L O C A L M A P A E R I A L M A P REGIONAL MAP // 14316 Christine Dr Whittier, CA 1 4 | PROPERTY INFORMATION 14316 Christine Dr // LOCAL MAP PROPERTY INFORMATION | 1 5 AERIAL MAP // 14316 Christine Dr 1 6 | PROPERTY INFORMATION PROPERTY INFORMATION | 1 7 S E C T I O N 3 Financial Analysis FINANCIAL DETAILS FINANCIAL DETAILS // 14316 Christine Dr As of June,2021 CURRENT CURRENT POTENTIAL POTENTIAL Rent / Rent / SF/ Rent / Rent/ SF/ UNIT UNIT TYPE Month Month Month Month 1 1 Bed/ 1 Bath $1,096 $0.00 $1,250 $0.00 2 1 Bed/ 1 Bath $1,096 $0.00 $1,250 $0.00 3 1 Bed/ 1 Bath $1,096 $0.00 $1,250 $0.00 4 1 Bed/ 1 Bath $1,113 $0.00 $1,250 $0.00 5 2 Bed/ 1 Bath $1,487 $0.00 $1,750 $0.00 6 2 Bed/ 1 Bath $1,873 $0.00 $1,750 $0.00 Total Square Feet: 3,397 $7,761 $2.28 $8,500 $2.50 2 0 | FINANCIAL ANALYSIS 14316 Christine Dr // FINANCIAL DETAILS Current POTENTIAL # OF AVG SQ RENTAL Average Average Monthly AVERAGE AVERAGE MONTHLY UNIT TYPE UNITS FEET RANGE Rent Rent / SF Income RENT RENT / SF INCOME 1 Bed/ 1 Bath 4 N/A $1,096 - $1,113 $1,100 N/A $4,401 $1,250 N/A $5,000 2 Bed/ 1 Bath 2 N/A $1,487 - $1,873 $1,680 N/A $3,360 $1,750 N/A $3,500 TOTALS/WEIGHTED AVERAGES 6 566 $1,294 $2.28 $7,761 $1,417 $2.50 $54,805 GROSS ANNUALIZED RENTS $93,132 $102,000 Unit Distribution Unit Rent $2,000 $1.00 SF $0.80 SF Rent perSF/Month $1,500 2 Bedroom/ 1 Bath $0.60 SF 33% $1,000 $0.40 SF Rent per Month Rent $500 $0.20 SF 1 Bedroom/ 1 Bath $0 $0.00 SF 67% 1 Bedroom/ 1 Bath 2 Bedroom/ 1 Bath Unit Type Rent Rent SF FINANCIAL ANALYSIS | 2 1 FINANCIAL DETAILS // 14316 Christine Dr INCOME Current Year 1 NOTES PER UNIT PER SF Rental Income Gross Current Rent 93,132 102,000 17,000 30.03 Physical Vacancy (2,794) 3.0% (3,060) 3.0% (510) (0.90) TOTAL VACANCY ($2,794) 3.0% ($3,060) 3.0% ($510) ($1) EFFECTIVE GROSS INCOME $90,338 $98,940 $16,490 $29.13 EXPENSES Current Year 1 NOTES PER UNIT PER SF Real Estate Taxes 18,688 18,688 3,115 5.50 Insurance 1,851 1,851 309 0.54 Utilities 4,305 4,305 718 1.27 Pest 190 190 32 0.06 Repairs & Maintenance 3,175 3,175 529 0.93 Landscaping 1,800 1,800 300 0.53 Off-Site Management 4,517 4,947 825 1.46 Operating Reserves 1,200 1,200 200 0.35 TOTAL EXPENSES $35,726 $36,156 $6,026 $10.64 EXPENSES AS % OF EGI 39.5% 36.5% NET OPERATING INCOME $54,612 $62,784 $10,464 $18.48 Notes and assumptions to the above analysis are on the following page.