1757-65 CORONADO AVENUE · Marcus & Millichap is pleased to present 1757-1765 Coronado Avenue, a...

A MARCUS & MILLICHAP INVESTMENT OPPORTUNITY

1757-65 CORONADO AVENUEL O N G B E A C H , C A

O F F E R I N G M E M O R A N D U M

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-Endorsements

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

1757-1765 Coronado AvenueLong Beach, CAACT ID ZAB0130079

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

01

03

02

04INVESTMENTOVERVIEW

FINANCIALOVERVIEW

MARKETOVERVIEW

MARKETCOMPARABLES

E X C L U S I V E L Y L I S T E D B Y

880 Apollo Street, Suite 101

El Segundo | CA 90245

424.405.3900

Marcus & Millichap is pleased to present 1757-1765 Coronado Avenue, a 12-unit investment property in Long Beach, California. The prop-

erty is located between Pacific Coast Highway and 17th Street in the Zaferia neighborhood just minutes from Alamitos Bay and the beach.

This area is a solid majority-renter market with low vacancy rates.

1757-1765 Coronado Avenue consists of all 2-bedroom 1-bathroom units. All the units are separately metered for gas and electricity. The

property also offers ample surface parking in the rear of the building.

This offering presents a great opportunity for an investor to acquire an asset with steady cash flow in a strong rental market and capture

potential upside in rents.

Investment Overview

H I G H L I G H T S

All 2 Bedroom 1 Bathroom Units

Ample Surface Parking

A Potential Drastic 60% Increase in NOI

Very Walkable: 87 Walk Score

Right Off PCH

H I G H L I G H T S

F I N A N C I A LA N A LY S I S

S C H E D U L E D P OT E N T I A L

U N I T T Y P E # O F U N I T S AVG S Q F E E T AV E R AG E R E N TAV E R AG E R E N T / S F

M O N T H LY I N C O M E AV E R AG E R E N TAV E R AG E R E N T / S F

M O N T H LY I N C O M E

2 B e d ro o m 1 B a t h ro o m 1 2 6 4 0 $ 1 , 2 3 0 $ 1 . 9 2 $ 1 4 ,7 5 9 $ 1 , 8 2 5 $ 2 . 8 5 $ 2 1 , 9 0 0

To ta l s / We i g h te d Ave ra g e s 1 2 6 4 0 $ 1 , 2 3 0 $ 1 . 9 2 $ 1 4 ,7 5 9 $ 1 , 8 2 5 $ 2 . 8 5 $ 2 1 , 9 0 0

G ro s s A n n u a l i ze d Re n t s $ 1 7 7,1 0 8 $ 2 6 2 , 8 0 0

As of February, 2020Rent Roll Detail

I N C O M E C U R R E N T Y E A R 1 P E R U N I T P E R S F

G ro s s P o t e n t i a l R e n t 2 6 2 , 8 0 0 2 6 2 , 8 0 0 2 1 , 9 0 0 3 4 . 2 1

Lo s s / G a i n t o Le a s e ( 8 5 , 6 9 2 ) 3 2 . 6 % 0 0 0 . 0 0

G ro s s S c h e d u l e d R e n t 1 7 7,1 0 8 2 6 2 , 8 0 0 2 1 , 9 0 0 3 4 . 2 1

P h y s i c a l Va c a n c y ( 5 , 3 1 3 ) 3 . 0 % ( 7, 8 8 4 ) 3 . 0 % (6 5 7 ) ( 1 . 0 3 )

To ta l s Va c a n c y ( $ 5 , 3 1 3) 3 .0 % ( $ 7, 8 8 4) 3 .0 % ( $ 6 5 7 ) ( $ 1 )

E f fe c t i ve G ro s s i n c o m e $ 1 7 1 ,7 9 5 $ 2 5 4 , 9 1 6 $ 2 1 , 24 3 $ 3 3 .1 8

E X P E N S E S C U R R E N T Y E A R 1 P E R U N I T P E R S F

R e a l E s t a t e Ta x e s 3 8 , 2 9 4 3 8 , 2 9 4 3 ,1 9 1 4 . 9 8

I n s u ra n c e 3 , 07 3 3 , 07 3 2 5 6 0 .4 0

U t i l i t i e s 2 ,4 0 0 2 ,4 0 0 2 0 0 0 . 3 1

R e p a i r s & M a i n t e n a n c e 7, 8 0 0 7, 8 0 0 6 5 0 1 . 0 2

M a r k e t i n g & A d v e r t i s i n g 8 8 4 8 8 4 74 0 .1 2

G e n e ra l & A d m i n i s t ra t i v e 1 , 9 6 7 1 ,7 6 7 1 4 7 0 . 2 3

P e s t C o n t ro l 6 0 0 6 0 0 5 0 0 . 0 8

La n d s c a p i n g 7 2 0 7 2 0 6 0 0 . 0 9

O p e ra t i n g R e s e r v e s 2 ,4 0 0 2 ,4 0 0 2 0 0 0 . 3 1

M a n a g e m e n t F e e 8 , 5 9 0 5 . 0 % 1 2 ,74 6 5 . 0 % 1 , 0 6 2 1 . 6 6

To ta l E x p e n s e s $ 6 6 ,7 2 8 $ 70,6 8 4 $ 5 , 8 9 0 $ 9. 2 0

E x p e n s e s a s % of E G I 3 8 . 8 % 2 7.7 %

N e t O p e ra t i n g I n c o m e $ 1 0 5 ,0 67 $ 1 8 4 , 2 3 2 $ 1 5 , 3 5 3 $ 2 3 . 9 8

Notes and assumptions to the above analysis are on the following page.

Operating Statement

10

S U M M A RY

P r i c e $ 2 ,9 9 0,0 0 0

D o w n P a y m e n t $ 1 , 3 6 0 ,4 5 0 4 6 %

N u m b e r o f U n i t s 1 2

P r i c e P e r U n i t $ 24 9 ,1 6 7

P r i c e P e r S q F t $ 3 8 9 . 2 2

R e n t a b l e S q F t 7, 6 8 2

Lo t S i z e 0 . 3 0 A c re s

A p p ro x . Ye a r B u i l t 1 9 5 8

F I N A N C I N G 1 ST LOA N

Lo a n A m o u n t $ 1 , 6 2 9 , 5 5 0

Lo a n Ty p e N e w

I n t e re s t R a t e 3 . 5 0 %

A m o r t i z a t i o n 3 0 Ye a r s

Ye a r D u e 2 0 5 0

R E T U R N S C U R R E N T Y E A R 1

CA P Ra te 3 . 51 % 6.1 6 %

G R M 1 6 . 8 8 1 1 . 3 8

C a s h - o n - C a s h 1 . 2 7 % 7. 0 9 %

D e b t C o v e ra g e R a t i o 1 . 2 0 2 .1 0

Loan is subject to change. Contact your Marcus & Millichap Capital

Corporation Representative

U N I T S U N I T S S Q F T/ U N I T S C H E D U L E D

R E N T S M A R K E T

R E N T S

1 2 2 B e d ro o m 1 B a t h ro o m 6 4 0 $ 1 , 2 3 0 $ 1 , 8 2 5

Pricing Detail

I N C O M E C U R R E N T Y E A R 1

G ro s s S c h e d u l e d Re n t $ 1 7 7,1 0 8 $ 2 6 2 , 8 0 0

Le s s : Va c a n c y/ D e d u c t i o n s 3 . 0 % $ 5 , 3 1 3 3 . 0 % $ 7, 8 8 4

To t a l E f fe c t i v e R e n t a l I n c o m e $ 1 7 1 ,7 9 5 $ 2 5 4 , 9 1 6

O t h e r I n c o m e $ 0 $ 0

E f fe c t i v e G ro s s I n c o m e $ 1 7 1 ,7 9 5 $ 2 5 4 , 9 1 6

Le s s : E x p e n s e s 3 8 . 8 % $ 6 6 ,7 2 8 2 7.7 % $ 7 0 , 6 8 4

N e t O p e ra t i n g I n c o m e $ 1 0 5 ,0 67 $ 1 8 4 , 2 3 2

C a s h F l o w $ 1 0 5 , 0 6 7 $ 1 8 4 , 2 3 2

D e b t S e r v i c e $ 87, 8 0 9 $ 87, 8 0 9

N e t C a s h F l o w A f t e r D e b t S e r v i c e 1 . 2 7 % $ 1 7, 2 5 8 7. 0 9 % $ 9 6 ,4 2 3

P r i n c i p a l R e d u c t i o n $ 3 1 , 3 6 4 $ 3 2 ,4 8 0

To ta l Re t u r n 3 . 5 7 % $ 4 8 ,6 2 2 9.4 8 % $ 1 2 8 , 9 0 3

E X P E N S E S C U R R E N T Y E A R 1

R e a l E s t a t e Ta x e s $ 3 8 , 2 9 4 $ 3 8 , 2 9 4

I n s u ra n c e $ 3 , 07 3 $ 3 , 07 3

U t i l i t i e s $ 2 ,4 0 0 $ 2 ,4 0 0

R e p a i r s & M a i n t e n a n c e $ 7, 8 0 0 $ 7, 8 0 0

M a r k e t i n g & A d v e r t i s i n g $ 8 8 4 $ 8 8 4

G e n e ra l & A d m i n i s t ra t i v e $ 1 , 9 6 7 $ 1 ,7 6 7

P e s t C o n t ro l $ 6 0 0 $ 6 0 0

La n d s c a p i n g $ 7 2 0 $ 7 2 0

O p e ra t i n g R e s e r v e s $ 2 ,4 0 0 $ 2 ,4 0 0

M a n a g e m e n t F e e $ 8 , 5 9 0 $ 1 2 ,74 6

To ta l E x p e n s e s $ 6 6 ,7 2 8 $ 70,6 8 4

E x p e n s e s / U n i t $ 5 , 5 6 1 $ 5 , 8 9 0

E x p e n s e s /S F $ 8 .6 9 $ 9. 2 0

Pricing Detail

12

M A R K E TO V E R V I E W

The South Bay-Long Beach area of southwestern Los Angeles County contains 21 miles of coastline between Long Beach and El Segundo and includes Los Ange-les International Airport, the Port of Los Angeles and the Port of Long Beach. The region boasts a population of approximately 1.3 million and is projected to add roughly 9,700 residents through 2023. High home values allow just half of house-holds to afford to own their home, generating a large rental market.

The area’s economy historically relied on the aerospace industry and defense-relat-ed technologies, including companies such as Boeing, Honeywell Aerospace and Raytheon.

Widespread diversification in recent years has produced a large contingent of pro-fessional and business services firms and corporate headquarters. Significant opera-tions are held by American Honda Motor Co., BP, and Mattel.

A growing population base and public healthcare have supported gains in the edu-cation and healthcare sector thanks to both public and private employers.

2018 POPULATION

2018 HOUSEHOLDS

MEDIAN HH INCOME

0.7% BY 2023

1.9% BY 2023

US MEDIAN: $58,000

1.3 MILLION

487,000

$74,900

LONG BEACH

THE A LINE

LONG BEACH CIVIC CENTER

In Downtown Long Beach, the $520 millionLong Beach Civic Center project calls for thedevelopment of a new library, a new headquartersfor both City Hall and the Port of Long Beach,650 multifamily units, 200 hotel rooms, andan expansion of Lincoln Park. The first phase ofthe project has now been completed.

The SOM-designed project, which spans across 16 acres, is highlighted by dual 11-story buildings that will become the new Long Beach City Hall and headquar-ters for the Port of Long Beach. The concrete frame of both towers are now rising at the west side of the complex.

The reopening of Metro’s A Line took place on November of 2019. Brand new renovations to The A Line (formerly known as the Blue Line) have had huge success in Long Beach local areas and will continue to attract more customers this coming year. The 22-mile line connects riders between downtown Los Angeles and downtown Long Beach, as well as the greater areas of Los Angeles such as Hollywood and Santa Monica.

16

Long BeachQUEEN MARY ISLAND

MIDDLE HARBOR PROJECT

Urban Commons has planned a $250 millionretail and entertainment complex for the 65-acre waterfront surrounding the Queen Mary,calling it Queen Mary Island. The redevelop-mentwill include restaurants, live music, 700,000square feet of retail space, a new 200-room ho-teland 150,000 square feet allocated for a miniamusement park, Urban Adventure.

The Middle Harbor terminal will be 311 acres, with an annual capacity of 3.3 million TEUs (twentyfoot equivalent units) – which alone would rank it as the nation’s fourth-busiest port. A new 4,200-foot-long concrete wharf with three deepwater berths will support 14 of the most modern gantry cranes – accomm An on-dock rail yard is designed to handle 1.1 million TEUs a year, or about 24 trains a week, to minimize roadway traffic impacts. Construc-tion is generating 1,000 temporary jobs a year through 2020, while 14,000 permanent new jobs will be generated in Southern California by the increase in trade.

DowntownLong Beach

The PikeOutlets

Promenade

Port ofLong Beach

Long BeachConvention Center

LOCAL ATTRACTIONSOV E R 5 0 LO C A L AT T R AC T I O N S W I T H I N A 2 - M I L E R A D I U S

C A L I FO R N I A STAT E U N I V E R S I T Y, LO N G B E AC H ( 2 . 3 M I L E S )

VA LO N G B E AC H H E A LT H C A R E SYST E M ( 2 . 6 M I L E S )

LO N G B E AC H C I T Y CO L L E G E PAC I F I C C A M P U S ( 1 . 3 M I L E S )

FO U R M A J O R F R E E WAYS W I T H I N C LO S E P R OX I M I T Y:

Circle Area (0.4 miles)

UFC Gym

Circle Porsche

Circle Audi

Circle Auto Group

Public Storage

Chick-fil-A

CVS

Wells Fargo

Chase Bank

In-N-Out Burger

Kaiser Permanente

Super 8 by Wyndham

Ralphs

Auto Zone

LA Fitness

Staples

T-Mobile

Public Storage

Marshalls

Rite Aid

Raising Cane’s Chicken

Starbucks

Jersey Mike’s Subs

Chipotle Mexican Grill

Carl’s Jr

Krispy Kreme

Vons

Ross

Flame Broiler

and more...

405 Freeway (1.6 miles)




6.0

5.4

4.8

4.2

3.6

3.0

2.4

1.8

1.2

0.6

0.0

18.00

16.20

14.40

12.60

10.80

9.00

7.20

5.40

3.60

1.80

0.00

1757-65 CoronadoAvenue


Average Cap Rate

Average GRM

1057 EuclidAvenue

1057 EuclidAvenue

1721-1725FreemanAvenue


1075Obispo Avenue

1075Obispo Avenue

915FreemanAvenue

915FreemanAvenue

1413-1421ObispoAvenue


1074 St. LouisAvenue


1021ProspectAvenue

1021ProspectAvenue

4781 E PacificCoast Highway

Park Towers


Avg. 4.31%

Avg. 14.80

AVERAGE CAP RATE

AVERAGE GRM

4.31%

14.80

Sales Comparables

20

Sales Comparables



1057 EuclidAvenue

1057 EuclidAvenue



1075Obispo Avenue

1075Obispo Avenue

915FreemanAvenue

915FreemanAvenue





1021ProspectAvenue

1021ProspectAvenue


Park Towers

Park Towers4781 E PacificCoast Highway

$360,000

$330,000

$300,000

$270,000

$240,000

$210,000

$180,000

$150,000

$120,000

$90,000

$60,000

$30,000

$0

$500.00

$450.00

$400.00

$350.00

$300.00

$250.000

$200.00

$150.00

$100.00

$50.00

$0.00

Average Price Per Unit

Average Price Per Square Foot

Avg. $258,294

Avg. $362.44

AVERAGE PRICE PER UNIT

AVERAGE PRICE PER SF

$258,294

$362.44

1

2

53

4

6

7

8

9

Sales Comparables

1757-65 CORONADO AVENUE 1057 EUCLID AVENUE 1721-1725 FREEMAN AVENUE

City, State Zip Long Beach, CA, 90804

Sales Price $2,990,000

Price Per Unit $249,167

Price Per SF $389.22

CAP Rate 3.51%

GRM 16.88

Year Built 1958

Unit Mix 12 2 Bed/1 Bath

Income $171,795

NOI $105,067





CAP Rate 4.13%

COE 3/15/2019

GRM 14.73

Year Built 1959


2 2 Bed/1 Bath

Income $92,654

NOI $56,420





CAP Rate 4.82%

COE 1/23/2020

GRM 15.75

Year Built 1956


2 2 Bed/1 Bath

1 2

Sales Comparables

1075 OBISPO AVENUE 1413-1421 OBISPO AVENUE 1021 PROSPECT AVENUE





CAP Rate 4.59%

COE 1/15/2019

GRM 16.76

Year Built 1953


1 2 Bed/2 Bath

Income $92,918

NOI $71,486

3 4 5

Sales Comparables





CAP Rate 4.26%

COE 6/24/2019

GRM 14.98

Year Built 1963


2 2 Bed/1 Bath

Income $92,654

NOI $56,420





CAP Rate 5.51%

COE 10/25/2019

GRM 13.35

Year Built 1929


2 2 Bed/1 Bath

Income $110,414

NOI $51,216

24

915 FREEMAN AVENUE 1074 ST LOUIS AVENUE 4781 E PACIFIC COAST HIGHWAY





CAP Rate 4.88%

GRM 13.84

Year Built 1949


1 2 Bed/1 Bath





CAP Rate 4.40%

COE 9/14/2019

GRM 14.40

Year Built 1962

Unit Mix 8 Studio Bath





CAP Rate 4.11%

COE 6/20/2019

GRM 14.59

Year Built 1954


1 3 Bed/1 Bath

7 8

Sales Comparables6

1741-1761 PARK AVENUE

9

Sales Comparables





CAP Rate 3.10%

COE 7/25/2019

Year Built 1965


36 2 Bed/1 Bath

26

1

2

3 4

5

Rent Comparables

Rent Comparables

1757-65 CORONADO AVENUE, LONG BEACH, CA

1061 CERRITOS AVENUE, LONG BEACH, CA

3249 E 15TH STREET, LONG BEACH, CA

UNIT TYPE UNITS SF RENT RENT/SF

2 Bedroom 1 Bathroom 12 640 $1,230 $1.92

Total/Avg. 12 640 $1,230 $1.92



Total/Avg. 4 668 $1,800 $2.69



Total/Avg. 8 721 $1,895 $2.63

1

2

28

Rent Comparables

1740 REDONDO AVENUE, LONG BEACH, CA

1741-1761 PARK AVENUE, LONG BEACH, CA

1393 NEWPORT AVENUE, LONG BEACH, CA



Total/Avg. 22 650 $1,750 $2.69




Total/Avg. 4 839 $1,975 $2.35



Total/Avg. 8 900 $1,995 $2.22

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3

5

880 Apollo Street, Suite 101

El Segundo | CA 90245

424.405.3900

E X C L U S I V E L Y L I S T E D B Y

1757-65 CORONADO AVENUE · Marcus & Millichap is pleased to present 1757-1765 Coronado Avenue, a...

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