SOUTH STANLEY 1106 AVENUE, 90019 6 Unit Apartment Community Located in the Center of Los Angeles
1 CONFIDENTIALITY & DISCLAIMER
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Exclusively Listed By:
Rich Johns Adam Zunder Multifamily Investment Advisor Multifamily Investment Advisor 818.432.1575 818.554.5560 [email protected] [email protected]
CalBRE Lic. #01432215 CalBRE Lic. #01821053
2 PAGE 06 PROPERTY DESCRIPTION 15 EXECUTIVE SUMMARY 18 LOCATION 26 MARKET COMPARABLES 29 DEMOGRAPHICS
3 LOS FELIZ
LA BREA
HOLLYWOOD FAIRFAX
North Fairfax Avenue MELROSE
Melrose Avenue West San Vicente Blvd. BEVERLY GROVE
BEVERLY HILLS
4 Wilshire Blvd. DOWNTOWN LA
MID CITY Wilshire Blvd. 1106
MID WILSHIRE South Stanley Avenue
CARTHAY CIRCLE West San Vicente Blvd. CARTHAY SQUARE
West Olympic Blvd.
BEVERLY HILLS
5 PROPERTY DESCRIPTION 7 THE OFFERING
1106 South Stanley Avenue, built in 1941, and located in Los Angeles (90019) is just south of the Miracle Mile and within +/- 1 mile from the Beverly Hills border. The property offers the long-term value conscience investor strong current income metrics along with future rental upside in one of the most stable and desirable neighborhoods in Los Angeles.
1106 South Stanley features very large apartment homes (+/- 6,991 SF of improvements) and an exceptional unit composition comprised of Three (3) 1 Bedroom - 1 Bathroom, One (1) 1 Bedroom – 1 Bathroom, One (1) 2 Bedroom - 1 Bathroom and One (1) Extra Large 2 Bedroom - 1 and one half bathroom apartment homes.
The property is situated on a large 8,692 square foot parcel and is elevated from the street. The property features a private courtyard which is available for use by all the residents. There are also multiple entrances on the side and the rear with easy access for residents. The systems package includes separate electrical and gas utilities, separate water heaters and common area laundry facilities.
Parking is provided for all residents in both garages and open spaces.
Centrally located in Los Angeles and adjacent to Miracle Mile, 1106 South Stanley avenue’s transit oriented and very walkable location offers residents access to many nearby venues including Midtown Crossing, the La Brea Corridor and east access to the 10 Freeway.
Given the property’s location and strong income metrics, 1106 South Stanley Avenue is an ideal investment for apartment operators seeking strong returns along with long term wealth preservation and appreciation.
8 9
i n v e s t m e n t h i g h l i g h t s
THE OPPORTUNITY: STRONG EMPLOYMENT: 1106 South Stanley Avenue is a 6-unit investment opportunity 1106 South Stanley Avenue is centrally located amongst some of located in a premier neighborhood adjacent to Miracle Mile and strongest employment centers in the Los Angeles metropolitan within 1 mile of the Beverly Hills border. The location features area and offers access to a diverse set of employers. a densely populated rental submarket known for excellent rent growth and extremely low vacancy rates. SEISMIC RETROFIT: Ownership has secured pricing estimates from well-qualified IMMEDIATE RETURNS licensed contractors to perform the required seismic retrofit work. 1106 South Avenue has undergone a quality renovation of 4 of Seller shall provide estimates prior to entering into contract. 6 units (67%) which create a proven concept to achieve strong market rents, creating stable investor returns. LOCATED NEAR NEW COMMERCIAL DEVELOPMENTS: More than 2.3 million square feet of commercial space is currently VALUE ADD OPPORTUNITY: under development in the Miracle Mile adjacent submarket 1106 South Stanley Avenue has 2 remaining unrenovated units representing more than $1.58 billion in project costs. It is estimated allowing future increased rent potential to take all the units that nearly 6,500 new jobs will be created in midtown Los Angeles through a new next generation renovation as units turn over. alone because of these new developments. AWELL LOC TED: 1106 South Stanley Avenue is located in an exceptional Los Angeles neighborhood, offering easy access to DTLA, Beverly Hills, Mid-Town Crossing, the La Brea corridor and the 10 Freeway.
11 12 13 14 EXECUTIVE SUMMARY
15 1106 South Stanley Avenue FINANCIAL SUMMARY Los Angeles, CA 90019
FINANCIAL INDICATORS SOURCE OF INCOME CURRENT RENTS MARKET RENTS Offering Price $2,875,000 Down Payment $2,875,000 # of Units Unit Type Avg. Rent Total Avg. Rent Income Current CAP 4% 3 1 Bed / 1 Bath $1,845 $5,534 $2,450 $7,350 Market CAP 5.1% 1 1 Bed / 1.5 Bath $2,350 $2,350 $2,600 $2,600 Current GRM 17.7 Market GRM 14.5 1 2 Bed / 1 Bath $2,400 $2,400 $2,900 $2,900 Cost Per SF $411 1 3 Bed / 1.5 Bath $3,154 $3,154 $3,600 $3,600 Cost Per Unit $479,167 Total Rental Income $13,463 $16,450
Cash on Cash Return 4% Garage Income $75 $75 Expenses Per Unit $7,912 Laundry Income $30 $30 Expenses Per Sq Ft $6.79 Total Monthly Income $13,568 $16,555
BUILDING DATA Total Annual Income $162,812 $198,660 Units 6 Year Built 1941 Lot Sq Ft 8,692 Bldg Gross Sq Ft 6,991 EST. ANNUALIZED OPERATING DATA CURRENT MARKET Scheduled Gross Income $162,812 $198,660 Less Vacancy 2.0% ($3,256) 2.0% ($3,973) ESTIMATED ANNUALIZED EXPENSES Gross Operating Income $159,556 $194,687 New Property Taxes $34,500 Less Expenses 30% ($47,472) 24% ($47,472) Water, Power & Gas Utilities $4,873 Net Operating Income $112,084 $147,215 Property Insurance $4,109 Repairs & Maintenance $2,250 Notations: Pest Control $840 1) Repairs & Maintenance: Based upon owner provided figures. Landscaping $900 2) Contract Service: Expenses are underwritten as a proforma expense for Pest Control ($70 / mo) Total Estimated Expenses ‐$47,472 and Landscaping ($75/mo) based on market rates. 3) Utilities: Based upon owner provided figures. 5) Real Estate Taxes: Taxes have been underwritten based upon a tax rate of 1.2%. 6) Property Insurance: Based upon owner provided figures.
16 1106 South Stanley Avenue RENT ROLL Los Angeles, CA 90019
UNIT STATUS UNIT TYPE CURRENT RENT MARKET RENT 1104 S. Stanley Ave. Occupied 1 Bed / 1.5 Bath $2,375.00 $2,600 1106 S. Stanley Ave. Occupied 3 Bed / 1.5 Bath $3,154.06 $3,600 1108 S. Stanley Ave. Occupied 1 Bed / 1 Bath $2,050.00 $2,450 5822 San Vicente Blvd. Occupied 1 Bed / 1 Bath $1,633.62 $2,450 5824 San Vicente Blvd. Occupied 2 Bed / 1 Bath $2,400.00 $2,900 5826 San Vicente Blvd. Occupied 1 Bed / 1 Bath $1,850.00 $2,450 $13,462.68 $16,450
*Rented garages are included in the stated rent
17 LOCATION
18 WEST SAN VICENTE BLVD.
19 1106 South Stanley Avenue
WALK SCORE TODAY
78 79 81 82 20 BEVERLY HILLS Families flock to Beverly Hills to enroll their children in the best school district in Los Angeles, the Beverly Hills School District. Horace Mann has just complet- ed major renovations and boasts a brand new brick building and outdoor field. Enjoy a night out and attend a show at the historic Saban Theater where world class acts from Don Rickles to the premier Grateful Dead Cover band still perform. After the show grab a slice of pizza and a bite of apple pie from Al Gelato which has been a staple in the neighborhood for over 50 years. Enjoy outdoor activities such as tennis and basketball at the Roxbury Park Recreation Center or take in a screening at The Academy of Motion Picture Arts and Sciences.
Beverly Hills is as diverse as the people who live there. Beverly Hills is home to many artists, writers, musicians, and actors as well as investment bankers, attor- neys, and doctors. Thanks to its neighborhood feel, Beverly Hills is the perfect area for young and old alike as people of all walks of life converge on one of the most popular destinations to visit or better yet live.
21 22 HOLLYWOOD BEVERLY HILLS WEST HOLLYWOOD
1106 SOUTH STANLEY
THE CENTER OF
LA CULVER CITY KOREATOWN
MIRACEL MILE DOWNTOWN LA 23 TRANSIT-ORIENTED LOCATION
1106 South Stanley Avenue is ideally located in the heart of Los As the Purple Line continues its expansion westward,residents will WALK SCORE: 82 Angeles at the junction of West San Vicente and South Stanley Av- also have subway transit to Century City and Westwood/West LA “WALKER’S PARADISE” enue. This address provides unparalleled access to the abundance from this vibrant location. Moreover, 1106 South Stanley Avenue of neighborhoods that make up the city of Los Angeles. Located is located less than one mile north of the 10-freeway, providing TRANSIT SCORE: 65 “GOOD TRANSIT” less than one mile from the future Wilshire/Fairfax Purple Line Met- residents with immediate access to Southern California’s vast free- ro Station, residents will enjoy immediate access to Koreatown and way system. WALK SCORE: 63 Downtown Los Angeles via the Purple Line. “BIKABLE”
1106 SOUTH STANLEY AVENUE
24 unparalleled RETAIL AMENETIES
Mid-City residents and visitors enjoy a Residents at 1106 South Stanley Avenue will be able are highlighted by Joan’s on Third, Son of a Gun, to experience The Grove, Los Angeles’ premier up- El Carmen, The Little Door (and Little Next Door), dynamic quality of life with unlimited scale retail and entertainment complex, located less Mercado, and Doughboy’s Café. With contempo- entertainment venues, world class beaches, than one and one half (1.5) miles from their home. rary beauty stores such as Aesop, Benefit Cosmetics, luxury hospitality settings, dining hot spots Whether dining at the numerous restaurants, de- Glamour Beauty Center, and hair salons including lighting in the adjacent Farmer’s Market, enjoying a Drybar and Clark Nova Salon, residents will enjoy and upscale shopping venues. Mid-City is romantic date night at Pacific Theaters, or appreciat- LA’s dynamic urban culture at their fingertips. Not to supported by a diverse, thriving local econo- ing the endless calendar of events, residents are truly mention the endless fashion stores like Elaine Kim, spoiled by being proximate to this lifestyle destination M. Cohen Designs, Mom’s the Word, and Wardrobe my, full of established media companies and complete with broad plazas and intimate courtyards. Department for women and men’s stores including financial services offering high-paying jobs. Lot, Stock and Barrel and Wittmore. Lastly, the re- In addition to The Grove, residents will benefit from development of La Brea Avenue between Beverly a centralized location with immediate access to West Boulevard and West 6th Street has introduced an 3rd Street, a well-favored and walkable dining and eclectic variety of stores and dining options includ- hopping district. The vast menu of dining options ing Sugarfish, Sycamore Kitchen, and Republique. 25 MARKET COMPARABLES
26 RENT COMPARABLES
1106 South Stanley Avenue
1) 1049 South Orange Grove Avenue 2) 1044 Carmona Avenue 3) 1101 South Orange Grove Avenue 4) 1057 Masselin Avenue 5) 1076 South Orange Grove Avenue 6) 1050 Masselin Avenue
27 RENT COMPARABLES
ONE BEDROOM TWO BEDROOM Year Property Units Built Owner / Manager Rent SF Rent/SF Rent SF Rent/SF
1 1106 South Stanley Avenue 6 1941 Private Owner $2,050 - $3,062 - - Los Angeles, CA 90019 Owner Managed
2 1049 South Orange Grove Avenue 6 1933 Private Owner $2,950 1000 $2.95 - - - Los Angeles, CA 90019 Owner Managed
3 1044 Carmona Avenue Private Owner 4 1928 $2,295 1000 $2.29 - - - Los Angeles, CA 90019 Owner Managed
4 1101 South Orange Grove Avenue 8 1931 Private Owner $2,295 - $4.65 - - - Los Angeles, CA 90019 Owner Managed
5 1057 Masselin Avenue Private Owner 4 1937 - - - $3,300 1350 $2.44 Los Angeles, CA 90019 Owner Managed
6 1076 South Orange Grove Avenue 16 1991 Private Owner - - - $3,495 1390 $2.51 Los Angeles, CA 90019 Owner Managed
7 1050 Masselin Avenue 4 1936 Private Owner - - - $3,300 Los Angeles, CA 90019 Owner Managed
AVERAGE: $2,513 1000 $3.29 $3,365 1370 $2.47 HIGH: $2,950 1000 $4.65 $3,495 1390 $2.51 LOW: $2,295 1000 $2.29 $3,300 1350 $2.44
28 DEMOGRAPHICS SNAPSHOT DEMOGRAPHIC RADIUS RINGS
POPULATION (1 MILE) AVERAGE HOUSE HOLD AVERAGE AGE (1 MILE) MEDIAN HOUS HOLD SIZE (1 MILE) INCOME. (1 MILE) 44,763 2.2 37.5 $96,190
POPULATION 0.5 MILES 1 MILE 1.5 MILES TOTAL POPULATION 13,207 44,763 93,195 MEDIAN AGE 36.2 37.5 38.0
HOUSEHOLDS 0.5 MILES 1 MILE 1.5 MILES
TOTAL HOUSEHOLDS 6,674 20,695 43,588 # OF PERSONS PER HH 2.0 2.2 2.1 AVERAGE HH INCOME $80,754 $96,190 $96,218 AVERAGE HOUSE VALUE $1,010,186 $925,916 $919,494
29 30 Exclusively Listed By:
RICH JOHNS ADAM ZUNDER Multifamily Advisor Multifamily Advisor KW Commercial KW Commercial 4061 Laurel Canyon Blvd. 4061 Laurel Canyon Blvd. Studio City, CA 91604 Studio City, CA 91604 T 818.432.1575 T 818.554.5560 [email protected] [email protected]
CalBRE Lic#01432215 CalBRE Lic#01821053
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