Stand-Alone M1 Industrial Building

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Stand-Alone M1 Industrial Building Stand-Alone M1 Industrial Building 1 1 9 2 0 - 11922 VALERIO STREET, NORTH HOLLYWOOD CA 91605 :: OFFERING MEMORANDUM CONFIDENTIALITY AGREEMENT 1 1 9 2 0 - 11922 VALERIO STREET, NORTH HOLLYWOOD CA 91605:: OFFERING MEMORANDUM All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Commercial in compliance with all applicable fair housing and equal opportunity laws. RON FEDER Managing Director BROKER OF RECORD 818.222.0404 Direct Keller Williams Realty Calabasas Estates 818.332.4015 Fax 23975 Park Sorrento, Suite 110 [email protected] Calabasas, CA 91302 DRE# 00983855 DRE# 01872625 1 1 9 2 0 - 11922 VALERIO STREET, NORTH HOLLYWOOD CA 91605:: OFFERING MEMORANDUM EXECUTIVE SUMMARY EXECUTIVE SUMMARY ADDRESS 11922 Valerio Street CITY North Hollywood, CA 91605 OFFERING PRICE $2,295,000 APN 2317-015-014 ZONING LAM1 BUILDING SF 8,500 LOT SF 16,818 YEAR BUILT 1955 CEILING HEIGHT DOCKS NONE DRIVE INS 2 tot./10'w x 9'h DISCLAIMER: The information contained herein is not a substitute for a thorough due diligence POWER 200a/220-240v 3p investigation. The Broker has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future 10 Surface Spaces are available; Ratio of PARKING projected financial performance of the property, zoning & land use, and the size and square 1.18/1,000 SF footage of the property and improvements. STAND - A L O N E M 1 INDUSTRIAL BUILDING 4 FINANCIAL SUMMARY OFFERING PRICE PRICE/BUILDING SF PRICE/LOT SF $2,295,000 $270 $136 LEASE SUMMARY Year YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 LEASE EXPIRATION Date 11/1/2016 11/1/2017 11/1/2018 11/1/2019 11/1/2020 10/31/2021 Monthly Totals $6,487.72 $6,682.35 $6,882.82 $7,089.31 $7,301.99 SF/Month $0.76 $0.79 $0.81 $0.83 $0.86 Annual Totals $77,852.64 $80,188.22 $82,593.87 $85,071.68 $87,623.83 Rent Increase 3% 3% 3% 3% STAND - A L O N E M 1 INDUSTRIAL BUILDING 5 THE OPPORTUNITY UNIQUE OWNER-USER/INVESTMENT OPPORTUNITY Opportunity for an investor/owner-user to acquire a free- standing warehouse/light manufacturing facility in an opportunity zone! Flexibility for additional income through a lease-up strategy of any unused space. 11920-11922 Valerio Street is comprised of an 8,500 square foot facility situated on an 16,818 square foot lot. EXCELLENT SYNERGISTIC LOCATION The property benefits from excellent accessibility. Sandwiched in between the 170 Freeway and Lankershim Boulevard, there is a large concentration of national retailers, warehouse & manufacturing companies, and media firms located in the immediate vicinity. DEVELOPMENT REINASSANCE From Chatsworth to North Hollywood, plans are in the pipeline to make neighborhoods more city-like, meaning more dense and maybe more walkable and bikeable and more transit-friendly. In the coming years, developers will build thousands of new units of housing, create open space, bring in new retailers, and build new offices, creating mini villages within neighborhoods. STAND - A L O N E M 1 INDUSTRIAL BUILDING 6 LOCATED IN AN OPPORTUNITY ZONE! The subject is located in an Opportunity Zone! Properties and businesses in the area near the subject property will likely see an increase in value due to a substantial influx of development funds by way of the new Opportunity Zone tax incentive. This program was spearheaded by the federal government in late 2017 to revitalize areas of economic opportunity around the country. The incentive program has two parts: 1. The deferral, until the end of 2026, of taxation equal to the capital gain realized on the sale of the assets, provided the gain is reinvested within six months in a Qualified Opportunity Fund 2. The exemption of federal income tax upon the gain (if any) from the disposition of the OZP investment, provided it is held for more than 10 years. TEMPORARY DEFERRAL STEP UP IN BASIS PERMANENT EXCLUSION A temporary deferral of inclusion in taxable income for The basis is increased by 10% if the investment in the A permanent exclusion from taxable income of capital gains capital gains reinvested into an Opportunity Fund. Opportunity Fund is held by the taxpayer for at least 5 years from the sale or exchange of an investment in an and by an additional 5% if held for at least 7 years, thereby Opportunity Fund if the investment is held for at least 10 excluding up to 15% years. ENTERPRISE ZONE CALIFORNIA ENTERPRISE ZONE PROGRAM The Enterprise Zone Program is a part of California’s Geographically-Targeted Economic Development Areas, which provides tax incentives and benefits to stimulate business investment and job creation for qualified disadvantaged individuals in state-designated economically distressed areas. In the State of California, there are a maximum of 42 Enterprise Zones (EZs), which are individually managed by their respective jurisdictions. Each EZ designation lasts for 15 years. BENEFITS • Hiring Credits: With the hiring credits in the EZ program, firms can earn approximately $37,000 in state tax credits spread out over a five-year period for each “qualified employee” that is hired. The credits are given on the following schedule: 50% of qualified wages in the first year of employment; 40% of qualified wages in the second year of employment; 30% of qualified wages in the third year of employment; 20% of qualified wages in the fourth year of employment; and 10% of qualified wages in the fifth year of employment. • Up to 100% net operating loss carry-forward for 15 years. • Sales tax credits on purchases up to $20 million per year of qualified machinery and machinery parts. • Up-front expensing of certain depreciable property; lenders to Zone businesses may receive a net interest deduction. • Unused tax credits can be applied to future tax years, stretching out the benefit of the initial investment. • Preference points on state contracts. STAND - A L O N E M 1 INDUSTRIAL BUILDING 8 STAND - A L O N E M 1 INDUSTRIAL BUILDING 9 Cosmos Steel Incorporated Network Autobody Sharp Pet Hospital Occidental Studios National Fleet Wholesale Darrow Air Hi Pod Store Windows American Awning Lo Carb U EXCELLENT SYNERGISTIC LOCATION The property benefits from excellent accessibility. Sandwiched in between the 170 Freeway and Lankershim Boulevard, there is a large concentration of national retailers, warehouse & manufacturing companies, and media firms located in the immediate vicinity. 1 1 9 2 0 - 11922 VALERIO STREET, NORTH HOLLYWOOD CA 91605:: OFFERING MEMORANDUM MARKET COMPARABLES SALES COMPARABLES 1 1 9 2 0 - 11922 VALERIO STREET, NORTH HOLLYWOOD CA 91605 Address & Total Units Type Built Gross SF Sale Date Price Price/SF Cap Rate 1 7254 Coldwater Canyon Avenue Warehouse
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