1341 Crenshaw Blvd. Offering Los Angeles, CA 90019 … · 2015-04-09 · 1341 Crenshaw Blvd. Los...

1341 Crenshaw Blvd.Los Angeles, CA 90019

Offering Memorandum

Rosano Partners // Offering Memorandum 21341 Crenshaw Blvd. Los Angeles, CA 90019

Presented by:

Rosano PartnersLos Angeles Office700 S. Flower St, Suite 2920Los Angeles, CA 90017www.RosanoPartners.com

Table Of Contents

Property Overview...................... 3

Location Overview .................... 5

Sales Comparables ................. 12

Financial Analysis .................... 19

Demographics ......................... 23

The information contained in the Offering Memorandum is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the exis-tence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.

Rosano Partners // Offering Memorandum 3


Property Overview


PRICE$1,225,000

PRICE / SF$230.22

PRICE / LOT SF$169.04

LEASABLE AREA5,321 SF

YEAR BUILT1950

Property Overview / Financial Summary

Property Overview

Property Overview / Investment Highlights

/ 8 unit apartment building in Mid-City/ Parking and laundry on site/ All units individually metered

PRICE/UNIT$153,125

CURRENT CAP5.51%

PRO FORMA CAP6.19%

CURRENT GRM11.82

PRO FORMA GRM10.63



Location Overview


Located in Mid-City, just South of Pico Blvd. and North of Venice.

Location Overview / Aerial

Location Overview / Location Descriptions


S

Location Overview / Map


Location Overview / Plat Map


Location Overview / LA County

African American

American Indian

Asian

Native Hawaiian

Hispanic or Latino

White Alone

Other

/ Population: 10,017,068 • (~26% of California’s population) / 4,057.88 Sq Mi Land Area / 2,419.6 Persons/Sq Mi / 29.5% Bachelors Degree or Higher / 3,462,202 Housing Units / 47.3% Homeownership Rate / $56,241 Median Household Income

La County Facts

La County Demographics

La County IndustryLos Angeles is the largest major manufacturing center in the United States. / 500,000 Manufacturing Workers

Los Angeles and Long Beach ports support international trade.


Location Overview / LA County Economy

Top 5 Companies Headquartered in LA County

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Walt Disney DirecTV OccidentalPetroleum

EdisonInternational

Health Net

Reve

nues

Mill

ions

Company Names

Series1

Occidental Petroleum - $24,216 MM

Walt Disney Co. - $40,893 MM

Health Net - $11,901 MM

DirecTV - $27,226 MM

Edison International - $12,760 MM



Sales Comparables


Price / Unit

S

31

2

Sales Comparables / Overview

$153,125 $168,571 $148,571 $170,000 $169,595

S 1 2 3

S. No. Address Sale Price Price / Unit

S 1341 Crenshaw Blvd. $1,225,000 $153,125

1 1520 3rd Ave. $1,180,000 $168,571

2 1336 5th Ave. $1,040,000 $148,571

3 5079 Pickford St. $1,020,000 $170,000

4 1607 S. Gramercy Pl. $975,000 $162,500

5 4150 Venice Blvd. $1,190,000 $198,333

4

$162,5004

5

$198,3335 A


Sales Comparables / 01 1520 3rd Ave. Los Angeles, CA 90019

Closing Date 11/26/14

Building SF 4,850 SF

Lot SF 7,500 SF

Year Built 1962

Zoning LARD 1.5

Units 7

Sale Price $1,180,000

Price/Building SF $243.30

Price/Unit $168,571.43


Sales Comparables / 02 1336 5th Ave. Los Angeles, CA 90019



Lot SF 7,001 SF

Year Built 1951

Zoning LARD 2

Units 7



Price/Unit $148,571.43


Sales Comparables / 03 5079 Pickford St. Los Angeles, CA 90019



Lot SF 8,500 SF

Year Built 1924

Zoning LARD 1.5

Units 6



Price/Unit $170,000


Sales Comparables / 04 1607 - 1609 S. Gramercy Pl. Los Angeles, CA 90019



Lot SF 8,912 SF

Year Built 1949

Zoning LAR 3

Units 6

Sale Price $975,000


Price/Unit $162,500


Sales Comparables / 05 4150 Venice Blvd. Los Angeles, CA 90019



Lot SF 8,799 SF

Year Built 1947

Zoning LAR 4

Units 6



Price/Unit $198,333



FinancialAnalysis


Financial Analysis / Setup

Price: $1,225,000 Loan Amount: $796,250Down Payment: 35% $428,750 Amortization: 30Number of Units 8 Interest Rate: 3.75%Price/Unit $153,125 Monthly Payment: ($3,688)Price/ Square Foot $230.22 Yearly Payment: ($44,251)Price/ Land Square Foot $169.04 Financing Summary:Current Cap: 5.51%Pro Forma Cap: 6.19%Current GRM: 11.82Pro Forma GRM: 10.63 # UnitsLeasable Area (sq/ft) 5,321 8 1+1Lot Size (sq/ft) 7,247Year Built 1950

Current Pro FormaGross Potential Rent $103,644 $115,200Other income (laundry) $660 $700Gross Potential Income: $104,304 $115,900Less: Vacancy Allowance $2,086 2% $3,477 3%Effective Gross Incomes $102,218 $112,423Less Expenses: $34,762 $36,571Net Operating Income: $67,456 66.0% * $75,852 67.5% *Debt Service ($44,251) ($44,251)Cash Flow After Debt Service/ CoC Return $23,205 5.4% $31,601 7.4%Principal Reduction $22,914 $22,914Total Return Before Taxes: $46,119 10.8% ** $54,515 13% **

NOTES:* As a percent of Effective Gross Income.** As a percent of Down Payment.

GPR % Current Pro FormaReal Estate Taxes 1.266% $15,503 $15,503Insurance $2,785 $2,800Management $4,146 $5,760Trash $1,176 $1,176Utilities $8,232 $8,232Maintenance/ Repairs $1,920 $2,000Miscellaneous reserves $1,000 $1,100

$34,762 $36,571Expenses/Sq.Ft. $6.53 $6.87

$1,100 $1,200

This information has been secured from sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify all information.

Pricing Summary

Total Expenses

Annualized Expenses

Annualized Operating Data

Current Rents

Please insert picture here and make sure size fits nicely.

Financing

Market Rents

1341 Crenshaw Blvd

INVESTMENT OPERATION SUMMARYLos Angeles, CA 90019

The said quote is the most competitive that the capital markets can offer.

Unit MixUnit Type


Financial Analysis / Rent Roll

1341 Crenshaw BlvdLos Angeles, CA 90019

Unit Current Current Rent/ Market Market PriceUnit # Unit Type Sq. Ft.(1) Rent Sq. Ft. Rent Price Sq. Ft.

1 1bd + 1ba 665 $1,167 $1.75 $1,200 $1.802 1bd + 1ba 665 $1,159 $1.74 $1,200 $1.80

3 * 1bd + 1ba 665 $1,100 $1.65 $1,200 $1.804 1bd + 1ba 665 $1,133 $1.70 $1,200 $1.805 1bd + 1ba 665 $1,050 $1.58 $1,200 $1.806 1bd + 1ba 665 $752 $1.13 $1,200 $1.80

7 * 1bd + 1ba 665 $1,003 $1.51 $1,200 $1.808 1bd + 1ba 665 $1,273 $1.91 $1,200 $1.80

5,320Totals: $8,637 $9,600

NOTES: * Section 8 tenant

Year 1 Year 2 Year 3 Year 4 Year 5GROSS POTENTIAL INCOME* $115,900 $120,536 $125,357 $130,372 $135,587 Vacany** $3,477 $3,581 $3,689 $3,799 $3,913EFFECTIVE GROSS INCOME $112,423 $116,955 $121,669 $126,572 $131,673 Expenses*** $36,571 $36,782 $36,994 $37,209 $37,426

NET OPERATING INCOME $75,852 $80,173 $82,863 $89,363 $94,247

DEBT Annual Debt Service $44,251 $44,251 $44,251 $44,251 $44,251 Loan Oustanding $751,999 $737,608 $721,018 $704,427 $686,593

BEFORE TAX CASH FLOW $31,601 $35,922 $38,612 $45,112 $49,996

6.19% 6.54% 6.76% 7.29% 7.69%7.37% 8.38% 9.01% 10.52% 11.66%

ASSUMPTIONS:4.00%3.00%1.00%

RENT ROLL

5 YEAR PRO-FORMA CASH-FLOW & VALUATION

*Rental Increases**Vacancy Trend

***Variable Expense Increase

Return on InvestmentCap Rate (Based on Purchase Price)

This information deemed to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risks


Financial Analysis / 5 Year Cash Flow

1341 Crenshaw BlvdLos Angeles, CA 90019

Unit Current Current Rent/ Market Market PriceUnit # Unit Type Sq. Ft.(1) Rent Sq. Ft. Rent Price Sq. Ft.

1 1bd + 1ba 665 $1,167 $1.75 $1,200 $1.802 1bd + 1ba 665 $1,159 $1.74 $1,200 $1.80

3 * 1bd + 1ba 665 $1,100 $1.65 $1,200 $1.804 1bd + 1ba 665 $1,133 $1.70 $1,200 $1.805 1bd + 1ba 665 $1,050 $1.58 $1,200 $1.806 1bd + 1ba 665 $752 $1.13 $1,200 $1.80

7 * 1bd + 1ba 665 $1,003 $1.51 $1,200 $1.808 1bd + 1ba 665 $1,273 $1.91 $1,200 $1.80

5,320Totals: $8,637 $9,600

NOTES: * Section 8 tenant

Year 1 Year 2 Year 3 Year 4 Year 5GROSS POTENTIAL INCOME* $115,900 $120,536 $125,357 $130,372 $135,587 Vacany** $3,477 $3,581 $3,689 $3,799 $3,913EFFECTIVE GROSS INCOME $112,423 $116,955 $121,669 $126,572 $131,673 Expenses*** $36,571 $36,782 $36,994 $37,209 $37,426

NET OPERATING INCOME $75,852 $80,173 $82,863 $89,363 $94,247

DEBT Annual Debt Service $44,251 $44,251 $44,251 $44,251 $44,251 Loan Oustanding $751,999 $737,608 $721,018 $704,427 $686,593

BEFORE TAX CASH FLOW $31,601 $35,922 $38,612 $45,112 $49,996

6.19% 6.54% 6.76% 7.29% 7.69%7.37% 8.38% 9.01% 10.52% 11.66%

ASSUMPTIONS:4.00%3.00%1.00%

RENT ROLL

5 YEAR PRO-FORMA CASH-FLOW & VALUATION

*Rental Increases**Vacancy Trend

***Variable Expense Increase

Return on InvestmentCap Rate (Based on Purchase Price)

This information deemed to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risks



Demographics


Demographics / Market Comparison Report

-0.44%

2.31%2.30%

3.24%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2010 - 2014 2014 - 2019

Population Growth

1 Mile

County

-5.54%

2.07%

-0.02%

3.29%

-6.00%

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

2010 - 2014 2014 - 2019

Household Growth

1 Mile

County



$37,151

$54,607

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1 Mile County

2014 Med Household Inc

1 Mile

County

36.5

36

35.7

35.8

35.9

36

36.1

36.2

36.3

36.4

36.5

36.6

1 Mile County

2014 Med Age

1 Mile

County



35.04%

27.96%

13.42%

9.00%

5.00%3.00% 3.42% 3.64%

24.20%22.48%

16.51%

12.00%

8.00%5.00% 5.50% 6.05%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

<$25K $25K - $50K $50K - $75K $75K - $100K $100K - $125K $125K - $150K $150K - $200K $200K +

2014 Households by Household Income

1 Mile

County

53.47%

21.30%

2.16%

20.15%

0.25% 2.67%

71.82%

9.28%

1.51%

14.24%

0.38% 2.77%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other

2014 Population by Race

1 Mile

County



2014 Employed vs Unemployed

2014 Renter vs Owner

72.91%

27.09%

1 Mile

Rent

Own52.36%

47.64%

County

Rent

Own

88.11%

10.89%

1 Mile

Employed

Unemployed

89.59%

10.41%

County

Employed

Unemployed

Presented by:

Rosano PartnersLos Angeles Office700 S. Flower St, Suite 2920Los Angeles, CA 90017www.RosanoPartners.com

The information contained in the Offering Memorandum is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.

1341 Crenshaw Blvd. Offering Los Angeles, CA 90019 … · 2015-04-09 · 1341 Crenshaw Blvd. Los...

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