1055-57 Allen Ave Glendale, California 2 04 Property Overview
OFFERING MEMORANDUM 1055-57 ALLEN AVE GLENDALE, CALIFORNIA 2 04 PROPERTY OVERVIEW
06 FINANCIAL ANALYSIS 1055-57 10 AREA OVERVIEW ALLEN AVE EXCLUSIVELY LISTED BY MICHAEL ASTORIAN DAVID HARRINGTON GLENDALE, CALIFORNIA Associate EVP & National Director [email protected] [email protected] direct (818) 923-6123 direct (310) 295-1170 mobile (818) 926-8889 mobile (310) 497-5590 Lic # 01974130 (CA) Lic # 01320460 (CA)
3 I SECTION PROPERTY OVERVIEW
OPPORTUNITY • 5 Units | Building Area: 3,080 SF
• Unit Mix | (4) 1BR/1BA & (1) 2BR/1BA House in Rear
• 3 Buildings Situated on One Lot
Physical Description: • Tudor Style Construction Number of Units: 5 • 5 Garages Year Built: 1926 APN: 5624-008-027 • Zoning | R-2250 Gross Sq. Ft.: 3,080 Average S.F. Per Unit: 616 Lot Size (SF): 10,080 PROPERTY DESCRIPTION • Pride of Ownership Property
• Central Glendale Location
• High Density Rental Market w/ Strong Demographics
• Ample Rental Upside to Capture | 40%
4 • 5 Units | Building Area: 3,080 SF
• Unit Mix | (4) 1BR/1BA & (1) 2BR/1BA House in Rear
• 3 Buildings Situated on One Lot
• Tudor Style Construction
• 5 Garages
• Zoning | R-2250
• Pride of Ownership Property
• Central Glendale Location
• High Density Rental Market w/ Strong Demographics
• Ample Rental Upside to Capture | 40%
5 II SECTION FINANCIAL ANALYSIS
UNIT MIX Current Avg Current Market Total Units Unit Mix Unit Mix % Market Rent Rent Monthly Rent Monthly Rent 4 1+1 80% $1,039 $4,155 $1,525 $6,100 1 2+1 House 20% $1,700 $1,700 $2,150 $2,150 Scheduled Monthly Rent: $5,855 $8,250 Scheduled Yearly Rent: $70,260 $99,000
Investment Overview
Offering Price: $1,495,000 1055-57 Allen Avenue ANNUALIZED OPERATING DATA Property: Glendale, CA 91201 Current Market Price Per Unit: $299,000 Scheduled Gross Income: $70,260 $99,000 41% Upside Price Per S.F.: $485.39 Less Vacancy Reserve: 3.0% $2,108 3.0% $2,970* Cap (current / market): 2.74 / 4.53% Gross Operating Income: $68,152 $96,030 GRM (current / market): 21.28 / 15.10 Expenses: 38.7% $27,168 28.57% $28,283* Net Operating Income: $40,984 $67,747 Loan Payments: $34,171 $34,171 Pre-Tax Cash Flow: 0.7% $6,813 3.60% $33,576** Plus Principal Reduction: $9,066 $9,066 Total Return Before Taxes: 1.70% $15,880 4.57% $42,642** * As a percent of Scheduled Gross Income ** As a percent of Down Payment
6 PRO FORMA ANNUAL OPERATING EXPENSES Current Per Unit % of SGI *Taxes 1.091% x Sale Price $16,314 $3,263 23% Off-Site Management 4.0% x GOI $2,726 $545 4% *Insurance $0.35 x GSF $1,078 $216 2% Repairs & Maintenance & Turnover $400 x Units $2,000 $400 3% Landscaping $120 x Units $600 $120 1% Utilities $650 x Units $3,250 $650 5% Trash $100 x 12 Months $1,200 $240 2% Total Expenses $150 x Units $27,168 $5,434 38.7% General Administration $100 x Units $600 $100 0.49% Total Expenses $44,872 $7,479 36.3%
Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $17,392 $3,478 24.8% Total Expense with out Taxes $10,854 $2,171 15.45%
RENT ROLL # Mix Rent Market Rent 1 1+1 $980 $1,525 2 1+1 $1,025 $1,525 3 1+1 $1,075 $1,525 4 1+1 $1,075 $1,525 5 2+1 House $1,700 $2,150 Totals $5,855 $8,250 Averages $1,171 $1,650
7 8 RENT COMPARABLES
ADDRESS UNIT TYPE RENT
1055-57 ALLEN AVE 1BR/1BA $1,039 GLENDALE, CA 1015 ELM AVENUE, 1BR/1BA $1,650 GLENDALE, CA 91201 212 E. VALENCIA AVENUE, 1BR/1BA $1,595 BURBANK, CA 91502 426 E. VALENCIA AVENUE, 1BR/1BA $1,595 BURBANK, CA 91506 1060 ELM AVENUE, 1BR/1BA $1,590 GLENDALE, CA 91201 268 E. PROVIDENCIA AVENUE, 1BR/1BA $1,525 BURBANK, CA 91502 Averages $1,591
ADDRESS UNIT TYPE RENT
1055-57 ALLEN AVE 1BR/1BA $1,700 GLENDALE, CA
520-524 E. SANTA ANITA 2BR/1BA $2,150 AVENUE, BURBANK, CA 91501
1443 LAKE STREET, 2BR/1BA $1,995 GLENDALE, CA 91201
1157 JUSTIN AVENUE, 2BR/2BA $2,300 GLENDALE, CA 91201
1033 ALLEN AVENUE, 2BR/1BA $1,875 GLENDALE, CA 91201 Averages $2,080 9 III SECTION AREA OVERVIEW MAJOR EMPLOYERS
LOS ANGELES MSA As the second largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California’s original 27 counties, is one of the nation’s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California’s population. The area continues to grow, especially given the vigorous residential development in downtown LA. Famously known for a heavy entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United States. The Los Angeles-Orange County metro area alone has an enormous economy with an estimated $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, ECONOMY a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York The LA economy is famously and heavily based on the entertainment industry, with a metropolitan areas. particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism.
10 10 DEMOGRAPHICS
POPULATION 1-MILE 3-MILE 5-MILE 2010 Census 49,158 217,832 582,584 2017 Estimate 51,494 226,488 607,297 2022 Projection 53,539 234,490 629,346 Growth 2017-2022 3.97% 3.53% 3.63%
HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2010 Census 19,247 83,316 225,330 2017 Estimate 20,412 87,000 236,151 2022 Projection 21,353 90,313 245,460 Growth 2017 - 2022 4.61% 3.81% 3.94%
INCOME 1-MILE 3-MILE 5-MILE 2017 Average $64,500 $80,643 $84,936 Household Income 2017 Median $43,155 $54,353 $55,328 Household Income
11 200,000+ POPULATION 8 MILES NORTH OF DTLA
GLENDALE Bisected by the Verdugo Mountains, Glendale is a city that lies on the southeastern end of the San Fernando Valley. It is a suburb of the Greater Los Angeles Area just 15 minutes from downtown Los Angeles. At the center of some of Los Angeles’ up and # Company Employer coming neighborhoods, Glendale is the perfect home base for enjoying the best of the 1 Glendale Adventist Medical Center 2,662 City of Angels. 2 Glendale Unified School District 2,460 3 City of Glendale 1,997 There are plenty of job opportunities in Glendale as the city houses the headquarters 4 Dreamworks Animation 1,4781 of Nestlé US, Americas United Bank, and International House of Pancakes. The Grand 5 Glenair Inc. 1,322 Central Business Centre is home to Disney’s Consumer Products, Disney Too Studios, Disney Interactive, The Muppets Studio, and Marvel Animation Studios.
12 ATTRACTIONS
Americana at Brand Located less than a mile from the subject property, the Americana at Brand is the ultimate shopping, dining, and entertainment complex. The Americana at Brand offers everything from larger stores including Nordstrom and Bloomingdale’s to carefully chosen unique boutiques.
Glendale Galleria As the go to shopping destination, the Glendale Galleria is a large shopping center with a unique feel and a distinctive variety of stores. It is the fourth largest mall in L A County. In 2016, the Glendale Galleria saw 30 million visitors alone.
Outdoor Recreation With over 50 public parks within the city limits, Glendale has plenty of natures settings in which residents can partake in outdoor recreational activities. Local hikers frequent Deukmejian Wilderness Park - one of the most gorgeous and sparsely visited parks in L A county. The trails go through waterfalls, creeks, and stunning vistas that can feel worlds away from Los Angeles.
13 CONFIDENTIALITY & DISCLAIMER STATEMENT
This Offering Memorandum contains select information pertaining to the business and affairs of the property located at1055-57 Allen Ave Glendale, CA. It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1 . The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.
Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. 1055-57 ALLEN AVE GLENDALE, CALIFORNIA
EXCLUSIVELY LISTED BY MICHAEL ASTORIAN DAVID HARRINGTON Associate EVP & National Director [email protected] [email protected] direct (818) 923-6123 direct (310) 295-1170 ™ mobile (818) 926-8889 mobile (310) 497-5590 Lic # 01974130 (CA) Lic # 01320460 (CA) 15