7701 S BROADWAY LOS ANGELES, CA 90003
Mixed Use Units: (310) 780-1899 (310) 710-3829 3 Retail & 4 Residential [email protected] [email protected] VirtualVirtual Tour Tour BRE - 01717818 BRE - 01399621 VirtualVirtual Tour Tour 2
7701 S BROADWAY LOS ANGELES, CA 90003
Property Overview 3
Financial Overview 6
Property Photography 10
Comparables 17
Area Overview 24
Aerial Map 25
Disclaimer 29 3
7701 S BROADWAY LOS ANGELES, CA 90003 4
7701 S BROADWAY LOS ANGELES, CA 90003
Price $1,100,000
Address 7701 S Broadway
City, State, Zip Los Angeles, CA 90003
County Los Angeles
Zoning LAC2
Year Built 1925
Number Of Units 7
Parking Permitted Street Parking
Building Size 4,582 SF
Lot Size 6,666 SF
Cap Rate 6.47%
Pro Forma Cap Rate 9.55%
GRM 10.88
Pro Forma GRM 8.04
Price / Bldg Sf $240.07
Price / Lot Sf $165.02 5
7701 S BROADWAY LOS ANGELES, CA 90003
- (3) Retail Spaces & (4) 1-Bed/1-Bath Units - 3 Total Buildings on A 6,666 SF Lot • Building 1 (3 Retail Spaces) 2,182 SF • Building 2 (Residential Duplex) 1,200 SF • Building 3 (Residential Duplex) 1,200 SF - Currently Performing at a 6.47% CAP | 10.88 GRM - S Broadway See 18,676 Cars Per Day - 63,058 Residents in a 1 Mile Radius
7701 S Broadway is a mixed-use parcel located in South Los Angeles. The property consists of (4) 1-bed/1-units and (3) 727 SF retail spaces. Currently, the property is performing at a 6.47% CAP rate and a 10.88 GRM. South Broadway sees over 18,000 cars per day and has 63,058 residents in a 1-mile radius. 7701 S Broadway is conveniently located by the 110 Freeway Entrance leading straight to downtown Los Angeles.
Given the high traffic location and the potential to obtain historically low financing, this is an excellent opportunity for an owner-user opportunity to live in one building and subsidize monthly payment with rental income from the other units and retail spaces. 6
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7701 S BROADWAY LOS ANGELES, CA 90003
ADDRESS 7701 S Broadway YEAR BUILT 1925
DOWN PAYMENT 30% ($330,000) PARKING Street Parking
NUMBER OF UNITS 7 CURRENT NOI $71,169
COST PER UNIT $157,143 PRO FORMA NOI $105,084
LOT SIZE 6,666 SF CURRENT CAP RATE 6.47%
GROSS RENTABLE SF 4,582 SF PRO FORMA CAP RATE 9.55%
PRICE PER BLDG SF $240.07 CURRENT GRM 10.88
PRICE PER LAND SF $165.02 PRO FORMA GRM 8.04
LOAN AMOUNT $770,000 LOAN-TO-VALUE 70%
DOWN PAYMENT $330,000 AMORTIZATION 30-YEAR
INTEREST RATE 3.50% LOAN TERM 5-YEAR FIXED
MONTHLY PAYMENT $3,458 PROPOSED/EXISTING PROPOSED
ANNUAL PAYMENT $41,492 DEBT COVERAGE RATIO (DCR) 1.72 8
7701 S BROADWAY LOS ANGELES, CA 90003
UNIT TYPE NO. OF UNITS AVERAGE RENT MONTHLY INCOME PRO FORMA RENT PRO FORMA INCOME
Commercial 2 $1,800 $3,600 $1,800 $3,600
Office 1 $1,200 $1,200 $1,800 $1,800
1-Bed/1-Bath 4 $906 $3,625 $1,500 $6,000
CURRENT ACTUALS PRO FORMA RENT
GROSS SCHEDULED INCOME $101,100 $136,800
VACANY RATE RESERVE $5,055 5% $6,840 5%
GROSS OPERATING INCOME $96,045 $129,960
EXPENSES $24,876 25% $24,876 18%
NET OPERATING INCOME $71,169 $105,084
LOAN PAYMENTS $41,492 $41,492
PRE TAX CASH FLOWS $29,678 8.99% $63,593 19.27%
PRINCIPAL REDUCTION $14,777 $14,777
TOTAL RETURN BEFORE TAXES $44,455 13.47% $78,370 23.75%
CURRENT MARKET *ESTIMATED Per Unit
TOTAL SCHEDULED RENT $8,425 $11,400 NEW TAXES (NEW ESTIMATE) $13,210
LAUNDRY $0 $0 MAINTENANCE (3%) $3,033
GARAGES $0 $0 INSURANCE $1,833
MONTHLY SCHEDULED GROSS INCOME $8,425 $11,400 UTILITIES $5,600
ANNUALIZED SCHEDULED GROSS INCOME $101,100 $136,800 LANDSCAPING $1,200
UTILITIES PAID BY TENANT GAS & ELECTRIC - TOTAL EXPENSES $24,876
EXPENSES AS %/SGI 24.61%
EXPENSE PER SF $3.73 * This information has been secured from sources we believe to be reliable but representations, or warranties, expressed or implied, as to the accuracy of the references to square footage, land lines/boundaries and age are approximate. EXPENSE PER UNIT $3,554 Buyer takes responsibility for all information and bears all risk for any inaccuracies. 9
7701 S BROADWAY LOS ANGELES, CA 90003
1 Owner $1,800 $1,800
1 Law Office $1,200 $1,800
1 Bail Bonds $1,800 $1,800
1 1+1 $825 $1,500
1 1+1 $950 $1,500
1 1+1 $925 $1,500
1 1+1 $925 $1,500
MONTHLY TOTALS $8,425 $11,400
ANNUALIZED TOTALS $101,100 $136,800 10
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7701 S BROADWAY LOS ANGELES, CA 90003
8400 S San Pedro St, $470,000 2 1946 1,460 SF $235,000 $321.92 4.91% 15.67 12/17/2020 Los Angeles, CA 90003
234 W 89th St, $600,000 3 1962 2,026 SF $200,000 $296.15 8.15% 11.63 12/31/2020 Los Angeles, CA 90003
215 W 88th St, $670,000 2 1911 1,957 SF $335,000 $342.36 4.61% 17.24 12/14/2020 Los Angeles, CA 90003
1212 E 80th St, $686,000 2 1925 1,702 SF $343,000 $403.06 7.57% 9.85 01/29/2021 Los Angeles, CA 90003
620 E 73rd St, $720,000 2 1992 3,346 SF $360,000 $215.18 5.98% 12.05 01/08/2021 Los Angeles, CA 90003
Averages $629,000 2 1947 2,026 SF $294,600 $315.73 6.24% 13.29 1NA
7701 S Broadway, $1,100,000 7 1925 4,582 SF $157,143 $240.07 6.47% 10.88 ACTIVE Los Angeles, CA 90003 16
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7701 S BROADWAY LOS ANGELES, CA 90003
228 W 87th PL, $579,999 3 1923 1,710 SF $193,333 $339.18 6.93% 12.89 12/18/2020 Los Angeles, CA, 90003
339 W 75th St, $580,000 3 1923 1,951 SF $193,333 $297.28 5.78% 14.65 07/26/2020 Los Angeles, CA, 90003
1155 E 81st St, $830,000 2 1998 2,746 SF $415,000 $302.26 4.87% 17.21 11/27/2020 Los Angeles, CA, 90003
317 W 77th St, $1,050,000 3 1957 2,928 SF $350,000 $358.61 6.04% 12.68 10/23/202 Los Angeles, CA, 90003
8925 S Broadway $1,230,888 4 1990 3,204 SF $307,722 $384.17 6.27% 11.29 02/04/2020 Los Angeles, CA, 90003
Averages $854,177 3 1958 2,508 SF $291,878 $336.30 5.98% 13.74 08/19/2020
7701 S Broadway, $1,100,000 7 1925 4,582 SF $157,143 $240.07 6.47% 10.88 ACTIVE Los Angeles, CA 90003 18
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7701 S BROADWAY LOS ANGELES, CA 90003
6115 Broadway, General Retail/ 01/04/20 1,714 SF $475,000 Los Angeles CA, 90003 Store front
6301 S Broadway, General Retail/ 07/05/19 3,517 SF $2,200,000 Los Angeles CA, 90003 Store front
6614 S Broadway, General Retail/ 11/01/19 4,982 SF $2,800,000 Los Angeles CA, 90003 Free Standing
8301 Compton Ave, General Retail/ 09/25/20 6,000 SF $2,290,000 Los Angeles CA, 90003 Free Standing
1530 W Florence Ave, General Retail/ 01/23/20 4,400 SF $1,440,000 Los Angeles CA, 90003 Office
Averages 11/11/20 N/A 4,123 SF $1,841,000
7701 S Broadway, General Retail/ ACTIVE 4,582 SF $1,100,000 Los Angeles, CA 90003 Office` 20
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7701 S BROADWAY LOS ANGELES, CA 90003
Los Angeles Los Angeles County is the most heavily populated county with approximately 9.9 million people, including about 1 million that live in unincorporated areas of the county. The metropolis – formed by the six neighboring counties of Los Angeles, Ventura, Kern, San Bernardino, Riverside, and Orange – is home to approximately 19 million residents. Los Angeles County is home to one of the most educated labor pools in the country and offers a labor force of more than 4.7 million, of which more than 1.5 million are college graduates. Los Angeles County has the largest population of any county in the nation, exceeded only by eight states According to the United States Conference of Mayors, Los Angeles County boasts a GDP among the twenty largest in the world. Los Angeles County’s continued economic growth, in contrast to other areas of the state and nation, is due to its diversified economy and abundant, well-trained workforce. Los Angeles County is well located on the Southern Coast of California, and covers 4,061 square miles, including the San Clemente and Santa Catalina islands. The county is comprised of approximately 88 vibrant and diverse cities hosting more than 244,000 business establishments – the greatest concentration in the state. Los Angeles County has a Gross Domestic Product (GDP) of approximately $446 billion – placing it among the top 20 economies in the world. The combined GDP of Los Angeles and its five surrounding neighboring counties places it in the top 10. California is generally considered to be in the top five. If Los Angeles County were its own nation, its economy would be the 18th largest in the world. It is home to more than 244,000 businesses, with more minority and women owned businesses than any other state in the nation and is the nation’s top international trade center and manufacturing center. Los Angeles is recognized worldwide as a leader in entertainment, health sciences, business services, aerospace and international trade. Because the Los Angeles area is so large and diverse, it has something to offer everyone. While Hollywood and the Los Angeles beach culture are part of our collective image of Los Angeles, the city also has more museums than any other city and some of the best hotels in the world. 23
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The information contained in this Offering Memorandum (“Memorandum”) is proprietary and strictly confidential; it is intended to be reviewed only by the party receiving it from Broker and should not be made available to anyone else without the written consent of Broker. By retention or use of this Memorandum, you agree that its contents are confidential, that you will hold it in the strictest confidence, and that you will not disclose any of its contents contrary to these terms.
This Memorandum has been prepared to provide summary, unverified information to establish a preliminary level of interest in the subject property (“Property”). The information in this Memorandum has been obtained from sources Broker believes to be reliable; however, Broker has not conducted sufficient investigation to make any warranty or representation whatsoever including but not limited to the accuracy or completeness of the information, veracity or accuracy of the information, condition of the Property or its compliance or lack of compliance with applicable governmental requirements, developability, suitability or financial performance of the Property, income or expenses for 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 or Federal regulations, the physical condition of the improvements thereon, or the financial condition or business Property and does not purport to be an all – inclusive representation regarding the Property or to contain all or part of the information which prospective investors may require to evaluate the purchase of the Property. Additional information and an opportunity to investigate the Property will be made available to interested and qualified prospective purchasers. All information is based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of Broker, therefore, all information is subject to material variation. The information contained herein is not a substitute for a thorough due diligence investigation. Interested parties are expected to review all information of whatever nature independently and not rely on the contents of this Memorandum in any manner.
The Property owner (“Owner”) expressly reserves the right, at its sole discretion, to reject any or all offers to purchase the Property, and/or to terminate discussions at any time with or without notice. The Owner shall have no legal commitment or obligation unless and until written agreement(s) have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. Exclusively Marketed By
310) 780-1899 (310) 710-3829 [email protected] [email protected] BRE - 01717818 BRE - 01399621