Firestone Blvd
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OFFERING MEMORANDUM 8321-27 Firestone Blvd. Downey, CA 90241 Erik Sjolund • (310) 663-8164 • 439 N Canon Drive, Penthouse, Beverly Hills, CA 90210 • (310) 420-0077 • Reyn Hornwood BRE: 01948362 www.BeachandUrban.com BRE: 01955792 Table of Contents Exclusively Presented By SECTION NUMBER Erik Sjolund BEACH&URBAN Offering Overview 1 Investment Real Estate BRE 02023478 Property Photo’s 2 Cell: (310) 663-8164 [email protected] Submarket Info 3 Reyn Hornwood Beach & Urban 4 BEACH&URBAN Investment Real Estate BRE 01955792 Cell: (310) 420-0077 [email protected] 8321-27 Firestone Blvd, Downey CA 90241 Offering Overview - 1 BEACH&URBAN Property Information Property Highlights • Great Firestone Blvd Location Pricing & Value Metrics: • Located a Block from LA’s Famous Porto’s PRICE $1,999,000 Bakery & Café www.PortosBakery.com $/SQFT $251 Current Cap 5.93 % • Ample Parking Behind Structure Current NOI $108,624 • High Traffic Count: 30,000+ CPD Market Cap 6.75% Market NOI $176,388 Value-Add Retail Opportunity – Firestone Blvd Charming Strip-Retail Commercial Asset located on the bustling and revitalized Firestone Blvd! The property’s location is second to none in the city for retail property. Located between Downey Ave & Brookshire Ave on the North side of Firestone Blvd. This very busy ADDITIONAL PROPERTY INFORMATION part of the boulevard see’s an average traffic count of 30,000 cars per day. Due to the superb location, the properties retail space is Assessors Parcel Number (APN) 6254-020-014 highly sought after for local brick & mortar businesses. The property is walking distance from LA’s famous Porto’s Bakery & Café (approx. 1 Year Built 1922 block). Total Rentable Square Footage 7,940 The property is split into 4 retail units: Hookah Hub Lounge, Alma’s Lot Sizing 0.23+-AC. | 10,117 SQFT Beauty Shop, Tita’s Bridal Gallery and The Pride by Her Nail Solon. Current rental rates are approximately 30-50% below market rates. A Zoning C3 new investor may have an opportunity to reposition the asset to Occupancy 100% maximize their return. Located in such a premium location, this asset will surely see strong growth in rents as time goes on. 8321-27 Firestone Blvd, Downey CA 90241 Rent Roll & Expenses Current Rent Roll: 8321 - 8327 Firestone Blvd, Downey CA Square % Of Lease Term Rental Rate Market Rate Suite # Tenant Name Feet Property Begin End Monthly PSF Annually PSF Monthly PSF Lease Type 8327 Tita's Bridal Gallery 1,044 13% 1/1/1014 12/31/2018 $1,365 $1.31 $16,380 $15.69 $ 1,827 $1.75 Gross 8325 Alma's Beauty Shop 2,476 31% 1/1/2014 12/31/2019 $2,600 $1.05 $31,200 $12.60 $ 4,333 $1.75 Gross 8323 Hookah Hub Loungue 3,620 46% 1/1/2014 1/1/2020 $3,800 $1.05 $45,600 $12.60 $ 7,059 $1.95 Gross 8321 The Pride by Her Nail Solon 800 10% 1/1/2017 1/1/2020 $1,287 $1.61 $15,444 $19.31 $ 1,480 $1.85 Gross Total: Total: Average: Total: Average: Total: Average: Annual: 7,940 $9,052 $1.25 $108,624 $15.05 $14,699 $1.83 $176,388 Expenses: Downey Retail Trends: ($M) Consumer Demand $1,585.5+ Expense Amount Current Market Consumer Supply $1,570.9+ Real Estate Taxes (New) $ 25,000 Gross Income: $ 108,624 $ 176,388 Property Insurance $ 6,000 Total Expenses: $ 38,831 $ 41,500 Retail Opportunity $14.6+ Trash & Water $ 2,400 Maintenance (5% of GSI) $ 5,431 Net Income: $ 69,793 $ 134,888 Total: Cap Rate: 3.49% 6.75% $ 38,831 8321-27 Firestone Blvd, Downey CA 90241 Property Photo’s - 2 BEACH&URBAN Property Photo’s 8321-27 Firestone Blvd, Downey CA 90241 Property Photo’s 8321-27 Firestone Blvd, Downey CA 90241 Property Photo’s 8321-27 Firestone Blvd, Downey CA 90241 Property Photo’s 8321-27 Firestone Blvd, Downey CA 90241 Property Photo’s 8321-27 Firestone Blvd, Downey CA 90241 Property Photo’s PROPERTY REAR 8321-27 Firestone Blvd, Downey CA 90241 Property Photo’s 8321-27 Firestone Blvd, Downey CA 90241 Property Photo’s 8321-27 Firestone Blvd, Downey CA 90241 Submarket Info - 3 BEACH&URBAN California DOWNEY POPULATION Median Age 34.3 years old TYPE OF 113,407 HOUSEHOLDS 51.1 AGE DISTRIBUTION Non-Family 21.4% 65+ 10.5% Households 45-64 23.5% 48.9 25-44 30.0% 78.6% 15-24 15.1% Under 15 21.0% Total Family Households: 32,738 Households 0 5% 10% 15% 20% 25% 30% EMPLOYMENT & ECONOMY BY ETHNICITY Unemployed Hispanic 73.0% 3.6% EMPLOYMENT White 15.6% Population 16 Asian 6.7% and Older: 88,241 Employed 96.4% Black 3.8% Median Household Other 0.7% Income $62,897 4.2% American Indian 0.2% Source: Economic Development Department From last year May 2017 0 10% 20% 30% 40% 50% 60% 70% 80% Source: American Fact Finder May 2016 OCCUPATION HOUSING 30.3% Management, Business, Professional & Arts Vacant 4.1% Median Existing 18.2% Services Occupations Own Home Sales 27.8% Sales & Office 48.7% Price $522,000 No Change from Last Year 8.2% Construction & Maintenance Rent 47.2% 15.5% Production & Transportation 0 5% 10% 15% 20% 25% 30% 35% LARGEST EMPLOYERS Employer Number of Percent of Employees Total Employment Housing Units by Kaiser Permanente 4,500 8.2% Housing Type: 34,133 Downey Unified School District 2,450 4.5% 59.4% Single Family Detached Stonewood Shopping Center 1,765 3.2% Office of Education, County of Los Angeles 1,685 3.1% 32.5% Multi-Family 5 Units+ Rancho Los Amigos Medical Center 1,410 2.6% 3.8% Multi-Family 2 to 4 Units PIH Health 1,100 2.0% 3.6% Single Family Attached City of Downey 833 1.5% 0.7% Mobile Home Coca Cola Bottling Company 800 1.5% County of Los Angeles, Internal Services Dept. 712 1.3% Lakewood Health Center 314 0.6% Unless otherwise specified, data source is American Fact Finder 2015 Population Estimate, Education, Housing & Economic Source 2016 Comprehensive Annual Finance Report FY 2017-2018 Community Profile TRANSIT & EDUCATION THE ENVIRONMENT SCHOOLS IN DOWNEY Downey residents and businesses divert an estimated 30,073 tons 13 Public Elementary Schools of recyclables away from landfills in 2016. 4 Public Middle Schools 3 Public High Schools Keep Downey Beautiful program; 11 city-wide public clean-up events, 3 WASC - Accrediated Private Elementary/ Secondary Schools 3 smart gardening / composting workshops, and 3 hazardous waste and Source: Western Association of Schools and Colleges electronic disposal round-ups per year. On average 15% of full time City of Downey employees participate in POPULATION ride sharing programs with 5% commuting using low emission vehicles or non-vehicle transportation such as walking, biking or public transportation. 3+ Yrs consecutive enrollment in school: 33,081 2,017 21,313 8,418 1,333 Weekly Farmer’s Market that promotes local organic farms and goods. 100% Christmas tree recycling program 80% COMMUNITY EVENTS 60% Private 35+ Events 40% Public 20% 0 % Nursery K-12 22College Graduate/ Undergraduate Professional EDUCATIONAL ATTAINMENT Population over 25 Years of Age: 84,934 19.1% Bachelor’s Degree or Higher 32.7% Some OTHER AMENITIES College 1 Public Library 3 Hospitals 12 Parks (112.05 Acres) 25.7% HS Diploma 1 Public Swimming Pool open during the summer 4 Summer Camps 3 Walking Trails 1 Skateboard Park 22.5% Less than HS Diploma 1 Off-leash dog park 12 Tennis Courts 11 Playgrounds 0 5 10 15 20 25 30 35 4 Soccer Fields 4 Outdoor Sand Volleyball Courts 6.5 Outdoor Basketball Courts 2 Handball Courts 10 Ball Diamonds 10 Picnic Shelters COMMUNITY ENGAGEMENT 3 Activity Rooms (Shelters & Activity Rooms are for public use) 1 Gymnasium; indoor basketball and volleyball courts REGISTERED VOTERS 1 Community and Senior Center Facility No Party (provides activities, meals and social services) City of Downey has Democratic Pref 2 Golf Courses (1 City Operated and 1 County Operated) 58,973 registered voters 51.25% 23.44% 2 Public Ponds 2 Access Points to bike route trail heads Downey has approximately 196 American 1 Civic Theatre 1 Space Science Museum/ Learning Center Neighborhood Watch Groups Independent 1 Cemetery 2 Bocce Ball Courts 2.18% Public Meeting Agendas, 2 middle and 9 elementary school ASPIRE after school educational supporting documents, and videos program sites of City Council Meetings Republican 3 STEAMWorks after school program sites - 1 Middle & 2 Elementary are at www.downeyca.org 20.85% 32,017 Dial-A-Ride trips for seniors and persons with disabilities Other 128,414 Miles Traveled with 195,521 boardings on the Source: LA County Registrar/ Recorder 2.28% DowneyLINK Fixed Route Transit System Market Overview DOWNEY, CA - Gateway to Los Angeles Downey is a city located in southeast Los Angeles County, California, United States, 13 mi southeast of downtown Los Angeles. It is considered part of the Gateway Cities. The city is the birthplace of the Apollo space program, and is the hometown of Richard and Karen Carpenter. It is also the home of the oldest still operational McDonald's restaurant in the world. As of the 2010 census, the city had a total population of 111,772. Vultee Aircraft was Downey's largest employer during World War II, producing 15% of all of America's military aircraft by 1941. The company was a pioneer in the use of women in manufacturing positions, and was the first aircraft company to build airplanes on a powered assembly line. Vultee became a part of North American Aviation, (later North American Rockwell, then Rockwell International which was then bought by the Boeing company) whose facilities were the birthplace of the systems for the Apollo Space Program as well as the Space Shuttle.