IMPERIAL HWY PORTFOLIOE IMPERIAL HWY | LOS ANGELES, CA 90059 | 14 UNITS 863 E IMPERIAL HWY | 7 UNITS 847 E IMPERIAL HWY | 5 UNITS 855 E IMPERIAL HWY | 2 UNITS DRE 02004120 Jonathan Prakash Derrick Vartanian Executive Managing Director, Partner Executive Managing Director, Partner 310.301.2351 | [email protected] 310.301.2353 | [email protected] In Association with KW Commercial DRE: #01483131 DRE: #01816119 847 E Imperial Hwy, LA 90059 855 E Imperial Hwy, LA 90059 863 E Imperial Hwy, LA 90059 5 Units | $875,000 2 Units | $625,000 7 Units | $1,600,000 MVP TABLE OF CONTENTS In Association with KW Commercial OFFERING MEMORANDUM IMPERIAL HWY PORTFOLIO E IMPERIAL HWY | LOS ANGELES, CA 90059 1. EXECUTIVE SUMMARY SUMMARY OF TERMS & THE OFFERING 6-11 2. FINANCIAL ANALYSIS FINANCIAL SUMMARY & RENT ROLL 12-19 3. MARKET OVERVIEW CITY OF LOS ANGELES & GEOGRAPHY 20-21 SUBMARKET / GREATER LOS ANGELES AREA 22-23 DEMOGRAPHICS 24 MAJOR EMPLOYERS 25 RETAIL CENTERS 26 COLLEGES & UNIVERSITIES 27 HEALTH CARE CENTERS 28 PARKS AND RECREATION 29 CalDRE 02004120 MVP Commercial 3 IMPERIAL HWY 847E Imperial Hwy, LA 90059 5 Units | $875,000 5 (1BR/1BA) 855E Imperial Hwy, LA 90059 2 Units | $625,000 2 (3BR/1BA) PORTFOLIO 863E Imperial Hwy, LA 90059 7 Units | $1,600,000 1 (5BR/2BA) + 5 (2BR/1BA) + 1 (1BR/1BA) EXECUTIVE SUMMARY THE OFFERING SUBJECT PROPERTY : 847 E Imperial Hwy, Los Angeles CA 90059 MVP Commercial is pleased to present 847 E Imperial Hwy - a five (5) unit multifamily investment opportunity located in South Los Angeles and built in 1955. The two (2) story property consists of five (5) One Bedroom / One Bath units with three (3) of the units on the upper level and two (2) units on the ground floor. All five (5) units have hardwood floors throughout the living space and have been recently renovated with new tile flooring in every kitchen and bathroom. In addition to the flooring, three (3) of the five (5) units have undergone major renovations including new energy efficient windows and fixtures. Further, the Seller has Parking Seismic Retrofit plans in place but has yet to complete the work. Located just blocks from the 105 and 110 freeways between Central Avenue and Avalon Boulevard, the location of the offering allows for easy access to nearby freeways and shopping centers to accommodate for daily needs. The property possesses a total of nine (9) parking spots: three (3) of which are in a covered garage. Situated on a lot spanning 5,749 SF with 2,620 SF of building space, the building offers a comfortable amount of room for each unit. The offering is priced at a 6.10% CAP and 10.40 GRM, attractive rates in this active and emerging market. 847 E Imperial Hwy will surely benefit the investor with high returns, providing a premier CAP rate and low annual expenses. With historically high rental demand in the South Los Angeles Multi-Family market an investor can benefit from receiving full rental income from a recently renovated property that provides on-site parking and excellent amenities. IMPERIAL HIGHWAY PORTFOLIO 6 EXECUTIVE SUMMARY SUMMARY OF TERMS PARCEL MAP 847 E Imperial Hwy, Los Angeles CA 90059 APN: 6072-013-014 Price $875,000 Price/Unit $175,000 Price/Gross SF: $333.97 Units 5 Number of Stories 2 Year Built 1955 Building Size 2,620 SF Lot Size 5,769 SF Zoning RD2-1-CPIO Parking Spaces 9 INVESTMENT HIGHLIGHTS LOCATION HIGHLIGHTS • 6.10% CAP | 10.40 GRM • Developing Neighborhood in South Los Angeles • Seller has Seismic Retrofit Plans in Place • Close Proximity to 105 and 110 Freeways • Tremendous Rental Upside • Dense Rent-Controlled Sub Market • Five (5) 1 Bedroom + 1 Bath Units • Close Drive to new LA Ram Stadium (Sofi Stadium) • Newly Renovated Kitchen and Bathroom Floors MVP Commercial 7 EXECUTIVE SUMMARY THE OFFERING SUBJECT PROPERTY : 855 E Imperial Hwy, Los Angeles CA 90059 MVP Commercial is pleased to present 855 E Imperial Hwy - a two (2) unit multifamily investment opportunity located in South Los Angeles and built in 1910. The two (2) story property consists of two (2) Three Bedroom / One Bath units and features a strong CAP rate of 9.01% and a GRM of 8.07 on current rents. Also, the property has 6 parking spaces which could potentially be rented out for additional income. Located just blocks from the 105 and 110 freeways between Central Avenue and Avalon Boulevard, the location of the offering allows for easy access to nearby freeways and shopping center to accommodate for daily needs. Further, the subject property may be eligible for an ADU(s) and would provide an owner with a great opportunity to add units to the lot in order to maximize the value of this asset (BUYER TO VERIFY). IMPERIAL HIGHWAY PORTFOLIO 8 EXECUTIVE SUMMARY SUMMARY OF TERMS PARCEL MAP 855 E Imperial Hwy, Los Angeles CA 90059 APN: 6072-013-012 Price $625,000 Price/Unit $312,500 Price/Gross SF: $324.17 Units 2 Number of Stories 2 Year Built 1910 Building Size 1,928 SF Lot Size 5,769 SF Zoning RD2-1-CPIO Parking Spaces 6 INVESTMENT HIGHLIGHTS LOCATION HIGHLIGHTS • 9.01% CAP | 8.07 GRM • Developing Neighborhood in South Los Angeles • Stabilized Asset with Upside Potential • Close Proximity to 105 and 110 Freeways • Features all 3 Bedroom + 1 Bath Units • Dense Rent-Controlled Sub Market • Potential to Add ADUs to Lot in order to Maximize Investment • Close Drive to new LA Ram Stadium (Sofi Stadium) (BUYER TO VERIFY) • Large Lot Zoned LARD2 MVP Commercial 9 EXECUTIVE SUMMARY THE OFFERING SUBJECT PROPERTY : 863 E Imperial Hwy, Los Angeles CA 90059 MVP Commercial is pleased to present 863 E Imperial Highway - a seven (7) unit multifamily investment opportunity located in South Los Angeles and built in 1956. The three (3) story wood frame stucco building consists of five (5) Two Bedroom / One Bath units, one (1) One Bedroom / One Bath unit, and one (1) Five Bedroom / Two Bath unit. There are a total of seven (7) parking spaces: three (3) of which are covered spaces. Several units have recently been partially renovated with laminate flooring, new paint, and new plumbing fixtures. In addition to the extensive interior renovations, the property completed Soft Story Parking Retrofitting, had a brand new roof installed in 2017, completely updated electrical systems, upgraded security lighting, and installed a ADT Security System in each unit. Further, the Seller has started plans to convert the top unit into a 3 Bedroom / 2 Bath Unit. Located between Central Avenue and Avalon Boulevard, 863 E Imperial Highway is conveniently nearby the 105 and 110 Freeway and is also in close proximity to the Watts Towers Arts Center. 863 E Imperial Highway has 6,046 SF of livable space situated on a 5,759 SF lot zoned LARD2. This offering is priced to sell at a 6.37% CAP and 10.01 GRM. This attractive investment will reward an intelligent investor with high returns while remaining in the city of Los Angeles. Due to historically high occupancy rates in this market and low estimated annual expenses, an investor can be confident in receiving full rental income and optimizing their investment. IMPERIAL HIGHWAY PORTFOLIO 10 EXECUTIVE SUMMARY SUMMARY OF TERMS PARCEL MAP 863 E Imperial Hwy, Los Angeles CA 90059 APN: 6072-013-011 Price $1,600,000 Price/Unit $228,571 Price/Gross SF: $264.64 Units 7 Number of Stories 2 Year Built 1956 Building Size 6,046 SF Lot Size 5,759 SF Zoning RD2-1-CPIO Parking Spaces 7 INVESTMENT HIGHLIGHTS LOCATION HIGHLIGHTS • 6.37% CAP | 10.01 GRM • Developing Neighborhood in South Los Angeles • Parking Seismic Retrofit has been Completed • Close Proximity to 105 and 110 Freeways • Excellent Unit Mix: Five (2 Bedroom + 1 Bath), 1 (1 Bedroom + 1 • Dense Rent-Controlled Sub Market Bath), and 1 (5 Bedroom +2 Bath) • Close Drive to new LA Ram Stadium (Sofi Stadium) • Brand New Roof and Completely Upgraded Electrical System • Updated Units with Laminate Flooring, New Paint, New Plumbing Fixtures, and ADT Security System Ready • Ample On-Site Parking MVP Commercial 11 FINANCIAL SUMMARY 847, 855, 863 E Imperial Hwy, Los Angeles, CA 90059 PRICING ESTIMATED ANNUALIZED EXPENSES Price $3,100,000 *Taxes: Rate 1.2% $37,200 Down Payment 25% $775,000 *Insurance $5,827 Number of Units 14 **Utilities $14,359 Cost per Legal Unit $221,429 *Maintenance/Repair $16,066 Current GRM 9.65 **Trash $7,740 Market GRM 8.35 *Off-Site Mgmt 4% $12,853 Current CAP 6.82% *Reserves 1% $3,213 Market CAP 8.38% **Gardening $1,260 Approximate Age 1910, 1955, 1956 **Security Sys $1,920 Approximate Lot Size 17,297 SF Approximate Building Sqft 8,234 SF *Estimated Expenses* Cost per Net GSF $292.62 **Seller Stated Expenses** PROPOSED FINANCING Total Expenses $100,438 New First Loan: $2,325,000 Per Net Sqft $9.48 Interest Rate: 3.5% Per Unit $7,174.11 Amortization 30 Monthly Payment: $10,440 SCHEDULED INCOME DCR 1.70 Monthly Current Rents Monthly Market Rents LTV 75% No. of Units Bed/Bath Approx. Sqft Rent/Unit Income Rent/Unit Income 6 1+1 $1,430 $8,582 $1,600 $9,600 ANNUALIZED OPERATING DATA 5 2+1 $1,869 $9,345 $2,050 $10,250 Current Rents Market Rents 2 3+1 $3,150 $6,300 $4,050 $8,100 Scheduled Gross Income $321,318 $371,400 1 5+2 $2,400 $2,400 $2,850 $2,850 Less Vacancy Rate Reserve ($9,586) 3.0% ($11,088) 3.0% Gross Operating Income $311,733 $360,312 Average Rent/Gr.