1422 TAMARIND AVENUE HOLLYWOOD, CA 90028 · PROPERTY DESCRIPTION. 1422 Tamarind Ave, this 17-unit...

17 UNITS WITH PARKING IN THE HEART OF HOLLYWOOD

1422 TAMARIND AVENUEHOLLYWOOD, CA 90028

OFFERING MEMORANDUM

DRE# 01991628

LOCATION OVERVIEWNeighborhood OverviewHollywood DevelopmentsProperty Location

PROPERTY SUMMARYProperty Details Property HighlightsPhotography

FINANCIALSRent CompsRent RollFinancial Overview Sales Comps Loan Quote

--------------------------------------1422 TAMARIND AVENUEHOLLYWOOD, CA 90028

PRESENTED BYKenny StevensBRE# 01090251

[email protected]

9454 Wilshire Blvd, Seventh Floor

Beverly Hills, CA 90212 DRE# 01991628

OFFERING MEMORANDUMOVERVIEW

HOLLYWOOD, CALIFORNIA

1422 Tamarind Ave, is located in the booming, culturally rich neighborhood of Hollywood. The recent revitalization of Hollywood, long in the making, is now in full swing. Major entertainment and tech companies like Netflix & Viacom are now embracing the neighborhood. Just in the past 12 months, more than 7,500 new jobs were created in Hollywood.

Hollywood is one of those neighborhoods that needs no introduction, synonymous as it is with the city of Los Angeles itself. Because of its history and famous sites like the Hollywood Walk of Fame, it has always attracted hordes of tourists, but now it has become the epicenter of new Class A office campuses in Los Angeles. Developers are creating millions of sq. ft. of Class A office space and thousands of new luxury rental units. Old Hollywood is stepping in too, with Paramount Pictures recently winning approval for a 1.4 million-square-foot studio expansion. Companies specializing in streaming media and virtual reality are now flocking towards Hollywood.

Hollywood is also one of the most populated areas for schools, with a wide range of colleges and specialized programs like AMDA (American Musical & Dramatic Academy), Emerson College, the Musicians Institute, and AFI, situating themselves in Hollywood. In the past two years there has been a spike in the number of college students relocating to Hollywood.

New restaurants and hotels are also setting up shop in Hollywood in response to the growing tech & entertainment boom such as TAO, TheDream Hotel, and Beauty & Essex. An astonishing number of additional apartments like The ICON building & The Lombardi will be built overthe next decade. There is much more activity in Hollywood, reminding everyone that the evolving industry has returned to its roots. Thefuture of what will be is brighter than ever.


LOCATION OVERVIEWNEIGHBORHOOD OVERVIEW

LOCATION OVERVIEWHOLLYWOOD DEVELOPMENTS

Sunset Bronson Studios - 5800 Sunset Blvd Los Angeles, CA 90028 - 200,000 square feet of office space. Main Tenant: Netflix

Columbia Square - 6121 Sunset Blvd Los Angeles, CA 90028- 420 million office, residential & retail mixed use complex. Main tenants: VIACOM (MTV, BET, Comedy Central) (10,000 employees), Fender (2000+ employees

Siren Studios - 6087 Sunset Blvd Los Angeles, CA 90028- Plans to replace existing 70,000 sq. ft of office space with up to 350,000 sq. ft. of live/work space

Epic - 5901 Sunset Blvd Los Angeles, CA 90028- (under construction) - 15 stories, 300,000 square feet of office space

Sunset Gower Studios - 6050 W. Sunset Blvd Los Angeles, CA 90028- (under construction) - Additional 628,000 square feet of production space

The Lombardi 1717 Bronson Ave Los Angeles, CA 90028- (construction to begin early 2018) - 89 unit, luxury rental apartment complex

ICON Building - 5800 Sunset Blvd, Los Angeles, CA 90028 - (construction to begin early 2018) - 89 unit, luxury rental apartment complex

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1422 TAMARIND AVE

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LOCATION OVERVIEWPROPERRTY LOCATION

Griffith Observatory

Runyon Canyon Hollywood Bowl

The Magic Castle

Los Angeles City College

Hollywood PantagesTheatre

Hollywood & Vine

EquinoxSoul Cycle

Shake ShackKatsuyaKabuki

The MeltTrader Joes

Arclight Hollywood

Movie Theater

ICON Building

Greek Theater

LOS FELIZHOLLYWOOD

SchoolsAmerican Film Institute

Emerson College AMDA

Musicans Institute


1422 TAMARIND AVE

PROPERTY DESCRIPTION1422 Tamarind Ave, this 17-unit apartment community is located just South of Sunset Blvd, in the neighborhood of Hollywood. Walking distance to a myriad of coffee shops, restaurants, theaters, and colleges. Walking proximity to over 1m square feet of brand new office space. Directly across from Sunset Gower Studios. The property features 14,244 square feet of rentable area, situated on a large 12,999 square foot lot zoned LAR4. This 17 unit building is comprised of (4) two-bedroom, two-bathroom units, (12) one-bedroom, one-bathroom units, and (1) studio unit. The building has been well maintained and includes a beautifully landscaped central courtyard. Approximately 20 parking spots included in the property.

PROPERTY DETAILSUnits 17Major Intersection Between Sunset Blvd & Fountain AveMarket HollywoodAPN 5545-015-050Zoning Type LAR4Building SF 14,244 SFLot Size SF 12,999 SF

PROPERTY SUMMARY PROPERTY DETAILS --------------------------------------


PROPERTY SUMMARY PROPERTY HIGHLIGHTS

17 UNITS IN HOLLYWOOD Conservatively 31% upside in rents Heart of Hollywood location, south of Sunset and just east of Gower Conveniently located minutes from the Hollywood & Vine entertainment center, Metro Stations, and the 101 Freeway Bright, spacious units average 835 sq. ft. with great mix of (12) 1+1, (4) 2+2, and (1) studio Fully parked with approximately 20 spaces 2 large storage units generate additional income Ground floor units have large enclosed patios


PROPERTY SUMMARY PROPERTY PHOTOS --------------------------------------


FINANCIALSHOLLYWOODRENTALTRENDS --------------------------------------


According to research provided by Zillow, the average Hollywood rental price is $3,077, a 28% increase compared to 2015, when the average rent was $2,400. Rents are likely to continue to increase as the revitalization of Hollywood now in full swing. In just the past 12 months, more than 7,500 new jobs were created in Hollywood.

FINANCIALSRENTAL COMPS

Property Photo Address Rent Unit Type Notes

1422 Tamarind Ave Los Angeles 90028

$1,1966-$2,400 2+2

Subject property$842-$2,095 1+1

$859 Studio

1 1439 Tamarind Ave Los Angeles, CA 90028 $3,495-$4,095 3+3Built in 2018. This luxury apartment building is comprised exclusively of 3 bedroom 3 bath residences ranging from 1,150 square feet up to over 1,400 square feet. Units

feature open floor plans, designer fixtures, in-suite washers and dryers, walk-in closets, luxury appliances and more.

2 1455 N. Bronson AveLos Angeles, CA 90028 $3,750 1+2Built in 2006. Gallery like spaces feature open light filled volumes w/ 18+ ft ceilings, concrete floors, glass garage doors opening to private patios, head-on Hollywood

Sign views, dual zone a/c & private balconies.

3 1523 Gordon St Los Angeles, CA 90028 $3,500 1+2Built in 2005. Units feature high ceilings, concrete floors, stainless steel kitchen, 1.75

baths, roll up door, washer/dryer inside and three balconies.. Part of a small and quiet 12 unit complex, features two parking spaces, guest parking and storage.

4 5812 Virginia AveLos Angeles, CA 90028 $2,795-$2,895 1+1.5Built in 2018. Units features in-unit washer and dryer, stainless steel appliances, two-tone cabinetry, High ceilings, tall doors, quartz counter-tops, stylish flooring, Central

A/C and Heat

5 6556 La Mirada AveLos Angeles, CA 90038 $2,900 2+2 Built in 1965. Renovated unit with hardwood floors throughout.

6 1757 N Kingsley DrLos Angeles, CA 90027

$2,100-2,350 1+1 Built in 1968. Building was recently renovated with luxury modern finishes such as recessed lighting, customized closets, laminate floors, stainless steel appliances, quartz countertops, and custom tiled

bathrooms. $1,895 Studio

7 1317 N Bronson Ave Los Angeles, CA 90028 $1,995-$2,195 StudioBuilt in 1926. Unit features hardwood floors throughout. Recently updated kitchen and

bathroom.

8 6128 Carlos AveLos Angeles, CA 90028 $2,300 1+1Built in 1913. Unit features new kitchen countertops, hardwood floors throughout with

slate floors in the bathroom, kitchen, and laundry.


FINANCIALSRENTAL COMPS

Rental Comps1439 Tamarind Ave 1455 N. Bronson Ave1523 Gordon St 5812 Virginia Ave6556 La Mirada Ave1757 N Kingsley Dr1317 N Bronson Ave 6128 Carlos Ave

1422 TAMARIND AVE

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FINANCIALSRENT ROLL

Unit # Unit Type Rent Rent Move-in Date Notes

1 1 + 1 $2,095 $2,095 VACANT2 1 + 1 $1,114 $2,095 1/1/20113 1 + 1 $1,500 $2,095 5/12/20144 2 + 2 $2,400 $2,650 4/15/20175 2 + 2 $1,966 $2,650 9/23/20136 1 + 1 $2,095 $2,095 On-site Mgr7 1 + 1 $842 $2,095 1/1/19898 1 + 1 $1,750 $2,095 3/20/20189 1 + 1 $842 $2,095 7/1/1991

10 1 + 1 $1,700 $2,095 10/9/201711 1 + 1 $1,420 $2,095 4/16/201312 2 + 2 $2,200 $2,650 10/1/201714 1 + 1 $2,095 $2,095 VACANT15 1 + 1 $1,550 $2,095 9/30/201616 1 + 1 $1,650 $2,095 11/11/201617 Single $859 $1,695 3/15/200618 2 + 2 $2,300 $2,650 3/12/2018

Storage #1 N/A $300 $300 4/28/2016Storage #2 N/A $200 $200 3/29/2013

Laundry $170 $170

$29,048 $38,105

$348,576 $457,260

MONTHLY TOTAL:

ANNUAL TOTAL:


Sheet2

Unit #Unit TypeRentRentMove-in DateSize (sf)Notes

11 + 1$2,095$2,095VACANT

21 + 1$1,114$2,0951/1/11

31 + 1$1,500$2,0955/12/14

42 + 2$2,400$2,6504/15/17

52 + 2$1,966$2,6509/23/13

61 + 1$2,095$2,095On-site Mgr

71 + 1$842$2,0951/1/89

81 + 1$1,750$2,0953/20/18

91 + 1$842$2,0957/1/91

101 + 1$1,700$2,09510/9/17

111 + 1$1,420$2,0954/16/13

122 + 2$2,200$2,65010/1/17

141 + 1$2,095$2,095VACANT

151 + 1$1,550$2,0959/30/16

161 + 1$1,650$2,09511/11/16

17Single$859$1,6953/15/06

18 2 + 2$2,300$2,6503/12/18

Storage #1N/A$300$3004/28/16

Storage #2N/A$200$2003/29/13

Laundry$170$170

MONTHLY TOTAL:$29,048$38,105- 0

ANNUAL TOTAL:$348,576$457,260

FINANCIALSFINANCIAL OVERVIEW - $5,065,000

INVESTMENT SUMMARY SCHEDULED INCOMEPurchase Price: $5,065,000 UNIT MIX CURRENT PRO FORMADown Payment: $2,215,000 44% Units Beds Baths Average Monthly Rent MonthlyYear Built: 1962 4 2 2 $1,966-$2,400 $8,866 $2,650 $10,600Units: 17 12 1 1 $842-$2,095 $18,653 $2,095 $25,140Approx. Lot Size: 12,999 Sq. Ft. 1 Studio $859 $859 $1,695 $1,695Approx. Bldg. NRSF: 14,244 Sq. Ft.Price per Unit: $297,941 Price per Sq. Ft. $356 $28,378 $37,435

CURRENT PRO FORMA $500 $500GRM: 14.53 11.08 Laundry Income: $170 $170CAP: 4.12% 6.14% Monthly Gross Income: $29,048 $38,105

Annual Gross Income: $348,576 $457,260

ANNUAL INCOME ANNUAL EXPENSESCURRENT PRO FORMA AMOUNT

Scheduled Gross Income: $348,576 $457,260 $63,313Less Vacancy Reserve Rate: ($6,972) 2.00% * ($13,718) 3.00% $5,698Gross Operating Income: $341,604 $443,542 $14,244Less Expenses: ($132,709) 38% * ($132,709) 29% Repairs & Maintenance: $20,915Net Operating Income: $208,896 $310,834 Onsite Mgmt: $25,140Less Debt Service: ($172,272) ($172,272) $3,400Pre-Tax Cash Flow: $36,624 1.65% ** $138,562 6.26%Plus Principal Reduction: $46,385 $46,385Total Return Before Taxes: $83,009 3.75% ** $184,947 8.35%

$132,709PROPOSED FINANCING INFORMATION $9.32

` $2,850,000 $7,8064.45% fixed for 5 yrs -$14,356 per month

(On-site Mgr receives free rent)

Loan Rate

Expense / NRSF:Expense / Unit:

* As a percent of the scheduled gross income. ** As a percent of the down paymentTotal Expenses:

Proposed Financing

EXPENSES ARE ESTIMATED

Scheduled Rent:Storage Income:

Utilities:

ITEMTaxes: (based on new purchase price) 1.25%Insurance:

Misc:


Sheet1

INVESTMENT SUMMARYSCHEDULED INCOME

Purchase Price:$5,065,000UNIT MIXCURRENTPRO FORMA

Down Payment:$2,215,00044%UnitsBedsBathsAverageMonthlyRentMonthly

Year Built:1962422$1,966-$2,400$8,866$2,650$10,600

Units:171211$842-$2,095$18,653$2,095$25,140

Approx. Lot Size:12,999Sq. Ft.1Studio$859$859$1,695$1,695

Approx. Bldg. NRSF:14,244Sq. Ft.

Price per Unit:$297,941

Price per Sq. Ft.$356Scheduled Rent:$28,378$37,435

CURRENTPRO FORMAStorage Income:$500$500

GRM:14.5311.08Laundry Income:$170$170

CAP:4.12%6.14%Monthly Gross Income:$29,048$38,105

Annual Gross Income:$348,576$457,260

ANNUAL INCOMEANNUAL EXPENSES

CURRENTPRO FORMAITEMAMOUNT

Scheduled Gross Income:$348,576$457,260Taxes: (based on new purchase price) 1.25%$63,313

Less Vacancy Reserve Rate:($6,972)2.00%*($13,718)3.00%Insurance:$5,698

Gross Operating Income:$341,604$443,542Utilities:$14,244

Less Expenses:($132,709)38%*($132,709)29%Repairs & Maintenance:$20,915

Net Operating Income:$208,896$310,834Onsite Mgmt:$25,140

Less Debt Service:($172,272)($172,272)Misc:$3,400

Pre-Tax Cash Flow:$36,6241.65%**$138,5626.26%

Plus Principal Reduction:$46,385$46,385EXPENSES ARE ESTIMATED

Total Return Before Taxes:$83,0093.75%**$184,9478.35%(On-site Mgr receives free rent)

* As a percent of the scheduled gross income. ** As a percent of the down payment

Total Expenses:$132,709

PROPOSED FINANCING INFORMATIONExpense / NRSF:$9.32

Proposed Financing `$2,850,000Expense / Unit:$7,806

Loan Rate4.45%fixed for 5 yrs-$14,356per month

Loan Duration30yr

Sheet2

Unit #Unit TypeRentRentMove-in DateNotes11 + 1$2,095$2,095VACANT21 + 1$1,114$2,0951/1/1131 + 1$1,500$2,0955/12/1442 + 2$2,400$2,6504/15/1752 + 2$1,966$2,6509/23/1361 + 1$2,095$2,095On-site Mgr71 + 1$842$2,0951/1/8981 + 1$1,750$2,0953/20/1891 + 1$842$2,0957/1/91101 + 1$1,700$2,09510/9/17111 + 1$1,420$2,0954/16/13122 + 2$2,200$2,65010/1/17141 + 1$2,095$2,095VACANT151 + 1$1,550$2,0959/30/16161 + 1$1,650$2,09511/11/1617Single$859$1,6953/15/0618 2 + 2$2,300$2,6503/12/18Storage #1N/A$300$3004/28/16Storage #2N/A$200$2003/29/13Laundry$170$170MONTHLY TOTAL:$29,048$38,105ANNUAL TOTAL:$348,576$457,260

11 + 1$2,095$2,095VACANT

21 + 1$1,114$2,0951/1/11

31 + 1$1,500$2,0955/12/14

42 + 2$2,400$2,6504/15/17

52 + 2$1,966$2,6509/23/13

61 + 1$2,095$2,095On-site Mgr

71 + 1$842$2,0951/1/89

81 + 1$1,750$2,0953/20/18

91 + 1$842$2,0957/1/91

101 + 1$1,700$2,09510/9/17

111 + 1$1,420$2,0954/16/13

122 + 2$2,200$2,65010/1/17

141 + 1$2,095$2,09512/28/17

151 + 1$1,550$2,0959/30/16

161 + 1$1,650$2,09511/11/16

17Single$859$1,6953/15/06

18 2 + 2$2,300$2,6503/12/18

Storage #1N/A$300$3004/28/16

Storage #2N/A$200$2003/29/13

Laundry$170$170

MONTHLY TOTAL:$29,048$38,105- 0

ANNUAL TOTAL:$348,576$457,260

FINANCIALSSALES COMPS

Sales Comps1163 N Kingsley Dr2062 Argyle Ave6241 Afton Pl2136 N Beachwood Dr5645 Fernwood Ave

1422 Tamarind Ave

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FINANCIALSSALES COMPS

Property Photo Address Sale Price COE # ofUnitsPrice Per

FootBuilding

SFPrice/Unit

YearBuilt Unit Mix

1422 Tamarind AveHollywood, CA 90028 $5,065,000 - 17 $356 14,244 $297,941 1962

(4) 2+2(12) 1+1

(1) Studio

1 1163 N Kingsley Dr Los Angeles, CA 90029 $3,171,950 6/16/17 7 $462 6,867 $453,135 1924(4) 3+2(1) 2+1(2) 1+1

2 2062 Argyle AveLos Angeles, CA 90068 $2,950,000 11/9/17 7 $519 5,686 $421,429 1929(1) 1+1(5) 2+1

(1) Studio

3 6241 Afton PlLos Angeles, CA 90028 $3,055,714 6/2/17 8 $503 6,071 $381,964 1959(5) 2+1.5(3) 1+1

4 2136 N Beachwood Dr Los Angeles, CA 90068 $3,825,000 5/5/17 11 $373 10,224 $347,727 1955(7) 2+1(4) 1+1

5 5645 Fernwood AveLos Angeles, CA 90028 $3,473,000 2/16/18 12 $294 11,832 $289,417 1956(6) 2 +1(5) 1+1(1) 3+2



Financing Provided By:Brian WeisbergCommercial Realty Consultants Direct: (818) 222-2800 x203Email: [email protected]

FINANCIALSLOAN QUOTE


FOR MORE INFORMATION PLEASE CONTACT:

This information has been secured from sources we believe 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 risk for any inaccuracies.

Kenny Stevens310.963.7851

BRE# [email protected]

DRE# 01991628

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1422 TAMARIND AVENUE HOLLYWOOD, CA 90028 · PROPERTY DESCRIPTION. 1422 Tamarind Ave, this 17-unit...

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