Exclusive Multifamily Offering
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E XC L U S I V E MULTIFAMILY OFFERING 1922-1928 EAST 120TH STREET LOS ANGELES, CA 90059 12 UNITS BUILT: 1991 PRICE: $3,300,000 a Berkshire Hathaway and Jefferies Financial Group company INVESTMENT ADVISOR BRENT SPRENKLE SENIOR MANAGING DIRECTOR [email protected] OFFICE: (310) 470-4892 CA BRE #01290116 SOUTH BAY LOS ANGELES OFFICE 2321 ROSECRANS AVENUE, SUITE #3235 EL SEGUNDO, CA 90245 OFFICE: (424) 239-5900 FAX: (424) 239-5901 THE PROPERTY 4 THE LOCATION 10 FINANCIALS 16 MARKETING POSITION 22 MARKET OVERVIEW 32 DEMOGRAPHIC 50 MULTIFAMILY REPORT 64 TABLE OF TEAMS AND 70 SERVICES CONTENTS THE PRopeRTY 4 5 5 INVESTMENT HIGHLIGHTS • Great Unit Mix - All 3 and 4 Bedroom Apartments • Modern Construction - Built in 1991 • Substantial Rental Upside - Average Rent: $1,555/Month T HE • Steps to Martin Luther King Hospital P roperty • Adjacent to Newly Constructed Single-Family Homes • Large Units Averaging Over 1,100 Square Feet Each 6 The Property BERKADIA PROPERTY SUMMARY PROPERTY INFORMATION UNIT MIX / BED TYPE SIZE Address 1922-1928 E 120th St, Los Angeles, CA 8 THREE BD / ONE BA 1,050 Number of Units 12 4 FOUR BD / TWO 1,250 Average Residential Unit SF 1,117 Total 12 / 13,536 Year Built 1991 Total Acreage 0.48 Number of Buildings / Stories One / Two-Stories Parcel Number 6150-005-018, 6150-005-019 Gas and Electric Separate Metered roperty P HE T The Property BERKADIA 7 PROPERTY DESCRIPTION The 120th Street Apartments is a 1991-construction apartment community consisting of two detached properties on two parcels. The properties contain a unique unit mix consisting of eight units that are three-bedrooms with one bathroom and four units that are four-bedrooms with two bathrooms. All entrances are secured and there is ample on-site parking. Units are separately metered for gas and electricity. Units average over 1,100 square feet (Buyer to independently T HE verify), and the average lease rate is only $1.39 per square foot, which is P $1,555 per month, which will provide roperty an excellent opportunity for a new owner to increase lease rates. The property consists of two detached two-story walk up buildings situated on two separate parcel numbers on lots totaling approximately 20,976 square feet. There are 10 tandem carports in the rear of the property that will accommodate 20 vehicles. In addition, there are 4 uncovered tandem parking spaces that will accommodate an additional 8 vehicles. In total there are approximately 28 parking spaces at the property. Each of the two structures has a small laundry facility. 8 The Property BERKADIA PROPERTY BOUNDARY AERIAL roperty P HE T The Property BERKADIA 9 POINT OF INTEREST AERIAL T HE P roperty 10 The Property BERKADIA roperty P HE T The Property BERKADIA 11 THE Location 12 13 13 LOCATION MAP T HE L ocation 1922-1928 E 120th Street Los Angeles, CA 90059 14 The Location BERKADIA LOCATION DESCRIPTION - WILLOWBROOK The community of Willowbrook is located about 10 miles south of Los Angeles, just west of Lynnwood, near the intersection of interstates 105 and 110. The neighborhood is home to the 42-acre Martin Luther King Jr. Medical Campus, which is anchored by the 131-bed Martin Luther King, Jr. Community Hospital, the brand-new outpatient center, a public health center, a psychiatric urgent care center, and a recuperative car center. The hospital’s emergency room sees about 90,000 patients each year, making it one of the busies in the country. In addition, the campus is underway on a new 52,000-square-foot medical office building, expected to create 200 construction jobs and open in 2020. The private, non-profit, historically black graduate school, Charles R. Drew University of Medicine and Science (CDU), was founded in 1966 in Willowbrook. In fall 2018, the university served over 650 enrolled students with nearly 500 faculty and staff members. The Willowbrook / Rosa Parks rail station is LA Metro’s fourth-busiest train stop, making it a major transportation hub. The station also serves numerous buses and offers transfer service to the Green Line light rail. In August 2018, the first major development of the Metro’s New Blue project began. The $109 million station redesign includes a larger passenger platform, a new station entrance, self-cleaning restrooms, a bike hub, a customer service window, and a public plaza. Work on the project is expected to wrap up by the end of 2020. Los Angeles County parks located in the neighborhood, offering numerous recreation opportunities, include George Washington Carver Park, Earvin “Magic” Johnson County Recreation Area, Enterprise County Park, and Athens Park. In March 2019, work began ocation L on a six-phase renovation project of 120-acre Magic Johnson Park, which will include a community center, wetlands, and walking HE trails. Expected to complete in the fall of 2020, the first $70 million phase will include a 20,000-square-foot event center T intended for community gatherings and weddings, an outdoor wedding pavilion, a splash pad, kid’s play area, improved lighting, walking paths, and parking lots. Future changes over the next two decades are expected to add an amphitheater, a state-of-the-art sports complex, equestrian facilities, and a 1.7-mile horse path. The Location BERKADIA 15 PROPERTY NEIGHBORHOOD DESCRIPTION NEIGHBORHOOD SHOPPING DEMAND DRIVER LOS ANGELES, CA FROM THE FROM THE 0.2mi PROPERTY 0.5mi PROPERTY 1922-1928 E 120TH STREET Kenneth NEIGHBORHOOD QUICK FACTS Hahn SF SHOPPING TOTAL JOBS 167.2k DESTINATION 3.1k SUPPORTED Plaza ACRE + TOTAL MEDICAL 30 STORES 42 CAMPUS 399.4k Food-4-Less | Rite Aid | DD’s Discounts | Planet Fitness Martin Luther King, Jr. Medical Center Campus Population (Within Three Miles) NEIGHBORHOOD CONVENIENCES DEMAND DRIVER T HE L 52% FROM THE PROPERTY ocation Renter Occupied Housing Units 2.3mi (Within Three Miles) JOBS 800 SUPPORTED $ SF 495.1k 176k FACILITY Median Housing Unit Value Within a three-mile radius of the property Koos Manufacturing Inc. (Within Three Miles) $ 35.7k PRIMARY EDUCATION DEMAND DRIVER Median Household Income STUDENTS FROM THE (Within Three Miles) 23.0k SERVED 4.8mi PROPERTY SCHOOLS JOBS 36 AND CENTERS 1.4k SUPPORTED 5.1% City Unemployment Rate JOBS STUDENTS SUPPORTED ENROLLED (July 2019) 3.6k 16.7k Carver ES | Willowbrook MS | Centennial HS California State University Dominguez Hills 16 The Location BERKADIA ocation L HE T The Location BERKADIA 17 Financials 18 19 19 F INANCIALS 20 Financials BERKADIA 1922-1928 E 120th Street Estimated Current Current Projected Projected Unit # Unit Description Section 8 Unit SF Rate Rent Per SF Market Rate Rent Per SF 1922-1 Three Bedroom, One Bath 1,050 $1,400.00 $1.33 $2,100.00 $2.00 No 1922-2 Four Bedroom, Two Bath 1,250 $2,200.00 $1.76 $2,300.00 $1.84 Yes 1922-3 Three Bedroom, One Bath 1,050 $1,060.00 $1.01 $2,100.00 $2.00 Yes 1922-4 Three Bedroom, One Bath 1,050 $1,540.00 $1.47 $2,100.00 $2.00 No 1922-5 Four Bedroom, Two Bath 1,250 $1,643.00 $1.31 $2,300.00 $1.84 Yes 1922-6 Three Bedroom, One Bath 1,050 $2,000.00 $1.90 $2,100.00 $2.00 Yes 1928-1 Three Bedroom, One Bath 1,050 $1,395.00 $1.33 $2,100.00 $2.00 No 1928-2 Four Bedroom, Two Bath 1,250 $1,600.00 $1.28 $2,300.00 $1.84 No 1928-3 Three Bedroom, One Bath 1,050 $1,550.00 $1.48 $2,100.00 $2.00 No 1928-4 Three Bedroom, One Bath 1,050 $1,278.00 $1.22 $2,100.00 $2.00 No 1928-5 Four Bedroom, Two Bath 1,250 $1,448.00 $1.16 $2,300.00 $1.84 Yes 1928-6 Three Bedroom, One Bath 1,050 $1,540.00 $1.47 $2,100.00 $2.00 Yes Estimated Current Rent Range Projected NumberPercent of PercentageNumber Unit Description SF Rate Per SF Market Rate VacantUnits ofVacant Total INANCIALS Totals: Three Bedroom, One Bath 8,400.00 $11,763.00 $1.01 - $1.90 $16,800.00 0.00%8 66.67%0 F Four Bedroom, Two Bath 5,000.00 $6,891.00 $1.16 - $1.76 $9,200.00 0.00%4 33.33%0 13,400 $18,654.00 $26,000.00 0.00%12 0 Estimated Current Current Projected Projected % Estimated Rental Unit Description SF Rate Rent Per SF Market Rate Rent Per SF Upside Range Averages: Three Bedroom, One Bath 1,050.00 $1,470.38 $1.40 $2,100.00 $2.00 42.82% $1,060 - $2,000 Four Bedroom, Two Bath 1,250.00 $1,722.75 $1.38 $2,300.00 $1.84 33.51% $1,448 - $2,200 The information listed above has been obtained from sources we believe to be reliable, however, we cannot accept responsibility for its correctness. All square footage and project market rental rates are estimated. Buyer to independently investigate. Financials BERKADIA 21 Estimated Current Current Avg. Market Current Market Est. Total Units Unit Type Unit SF Rental Range Rent Rent Rent/SF Rent/SF Net SF 8 3 Bed / 1 Bath 1,050 $1,060 - $2,000 $1,470 $2,100 $1.40 $2.00 8,400 4 4 Bed / 2 Bath 1,250 $1,448 - $2,200 $1,723 $2,300 $1.38 $1.84 5,000 12 1,117 $1,555 $2,167 $1.39 $1.94 13,400 Gross SF 13,536 Current Market Trailing 12 (Tax Income Pro Forma Pro Forma Adjusted) Scheduled Market Rent $223,848 $312,000 $230,563 Less: Vacancy Actual is 0.00% 3.00% ($6,715) ($9,360) ($6,917) Net Rental Income $217,133 $302,640 $223,647 Plus: Misc.