7631 Alabama Ave - LoopNet · 2017. 12. 11. · C Fine Woodworking 11/01/2015 10/31/2018 2,650...
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7631 Alabama Ave 7631 Alabama Ave • Canoga Park, CA 91304 Cindy Hill, CCIM Senior Vice President 818.846.1611 [email protected] Mark Maccalupo Senior Associate 818.432.1601 [email protected] 4061 Laurel Canyon Blvd. Studio City, CA 91604 www.valleyapartmentsales.com PROPERTY HIGHLIGHTS Over 40% upside in current rents ● 2 of 5 tenants are month to month for immediate upside opportunity to achieve above market CAP ● Value-add opportunity with property market proforma over a 5% CAP ● All suites have approximately 13' - 15' ceiling height and drive in / grade level doors ● Property has gated / secured parking lot with approximately 30 free surface spaces ● Prepared By
Transcript of 7631 Alabama Ave - LoopNet · 2017. 12. 11. · C Fine Woodworking 11/01/2015 10/31/2018 2,650...
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7631 Alabama Ave7631 Alabama Ave • Canoga Park, CA 91304
Cindy Hill, CCIMSenior Vice [email protected]
Mark MaccalupoSenior [email protected]
4061 Laurel Canyon Blvd.Studio City, CA 91604www.valleyapartmentsales.com
PROPERTY HIGHLIGHTSOver 40% upside in current rents●
2 of 5 tenants are month to month for immediate upsideopportunity to achieve above market CAP
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Value-add opportunity with property market proforma over a 5%CAP
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All suites have approximately 13' - 15' ceiling height and drive in /grade level doors
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Property has gated / secured parking lot with approximately 30free surface spaces
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Prepared By
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INVESTMENT DETAILS
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Analysis
Analysis Date December 2017
Property
Property 7631 Alabama Ave
Property Address 7631 Alabama AveCanoga Park, CA 91304
Year Built 1963
Financial Information
All Cash
Purchase Information
Property Type Industrial
Purchase Price $2,750,000
Tenants 5
Total Rentable Sq. Ft. 13,440
Loans
Type Debt Term Amortization Rate Payment LO Costs
All Cash
Income & Expenses
Gross Operating Income $128,748
Monthly GOI $10,729
Total Annual Expenses ($40,620)
Monthly Expenses ($3,385)
Contact Information
Cindy Hill, CCIM
818.846.1611
00885625
Mark Maccalupo
818.432.1601
01930952
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EXECUTIVE SUMMARY
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Acquisition Costs
Purchase Price, Points and Closing Costs $2,750,000
Investment - Cash $0
Investment Information
Purchase Price $2,750,000
Price per Tenant $550,000
Price per Sq. Ft. $204.61
Income, Expenses & Cash Flow
Gross Scheduled Income $128,748
Total Vacancy and Credits $0
Operating Expenses ($40,620)
Net Operating Income $88,128
Debt Service $0
Cash Flow Before Taxes $88,128
Financial Indicators
Debt Coverage Ratio N/A
Capitalization Rate 3.20%
Gross Income / Square Feet $9.58
Gross Expenses / Square Feet ($3.02)
Operating Expense Ratio 31.55%
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PRO FORMA SUMMARY
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
INCOME
Description Actual Per SF Market Per SF
Gross Potential Rent $128,748 $9.58 $184,740 $13.75
Less: Vacancy $0 $0.00 ($5,542) ($0.41)
Effective Gross Income $128,748 $9.58 $179,198 $13.33
OPERATING EXPENSES
Description Actual Per SF Market Per SF
Building Insurance $4,500 $0.33 $4,500 $0.33
Cleaning & Maintenance $1,505 $0.11 $1,505 $0.11
Taxes - Real Estate $34,375 $2.56 $34,375 $2.56
Utilities $240 $0.02 $240 $0.02
Total Expenses ($40,620) ($3.02) ($40,620) ($3.02)
NET OPERATING INCOME $88,128 $6.56 $138,578 $10.31
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PRO FORMA SUMMARY
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
TENANT MONTHLY SCHEDULED INCOME
Tenant Actual Market Metro Retro $3,627 $4,115Millwork Resource Inc $1,650 $3,180Fine Woodworking $2,400 $3,180Soliman Inc $2,100 $3,180Jose Ortiz $952 $1,740TOTALS $10,729 $15,395
ANNUALIZED INCOME Description Actual Market
Gross Potential Rent $128,748 $184,740Less: Vacancy $0 ($5,542)Effective Gross Income $128,748 $179,198Less: Expenses ($40,620) ($40,620)Net Operating Income $88,128 $138,578
ANNUALIZED EXPENSES Description Actual Market
Building Insurance $4,500 $4,500Cleaning & Maintenance $1,505 $1,505Taxes - Real Estate $34,375 $34,375Utilities $240 $240Total Expenses $40,620 $40,620Expenses Per RSF $3.02 $3.02
INVESTMENT SUMMARY Price: $2,750,000
Year Built: 1963
Tenants: 5
RSF: 13,440
Price/RSF: $204.61
Lot Size: 24,625 sf
Floors: 1
APN: 2110-021-003
Cap Rate: 3.2%
Market Cap Rate: 5.04%
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PROPERTY DESCRIPTION
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Canoga Park industrial | Huge upside in rents KW Commercial is pleased to represent the 5 suite industrial building located in the heart of Canoga Park's Industrialand Commercial district.
The property is concrete block construction with no deferred maintenance, totaling 13,440 sqft of rentable space on24,625 sqft of land. It is zoned LAMR-1 and is located at the end of the Alabama Ave cul-de-sac with a gated andsecured parking for the tenants.
Tenants enjoy 30 onsite parking spaces, all suites have drive in / grade level doors, each unit has their ownbathroom and have a 13' to 15' ceiling height.
All leases are Modified Gross leases with landlord reasonable for tax and property insurance with suites allseparately metered for all utilities.
The current rents are over 40% under market for the area, immediate upside with 2 tenants on month to monthleases and others with terms expiring in April 2018 (this tenant has (1) 24 month option), October 2018, and December2020. An astute investor will take advantage of the tremendous upside in rents on this property.
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LEASE RENT ROLL
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submittedsubject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Suite Tenant Start Date Expire Date RSF $/RSF AnnualizedRentTenant
Improvement CommissionsRenewal
TermRenewalIncrease Notes
A Metro Retro 05/01/2017 04/30/2018 4,035 $10.79 $43,524 $0.00 $0.00 1 year $0.00 Tenant has (1) 24 month option
B Millwork Resource Inc 2,650 $7.47 $19,800 $0.00 $0.00 1 year N/A Month to month lease
C Fine Woodworking 11/01/2015 10/31/2018 2,650 $10.87 $28,800 $0.00 $0.00 1 year $0.00 No options available on the lease
D Soliman Inc 01/01/2017 12/31/2020 2,650 $9.51 $25,200 $0.00 $0.00 1 year $0.00 No options available on the lease
E Jose Ortiz 1,450 $7.88 $11,424 $0.00 $0.00 1 year N/A Month to month lease
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TENANT MIX REPORT
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Suite Tenants Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly
A Metro Retro 4035 $3,627 $3,627 $4,115 $4,115B Millwork Resource Inc 2650 $1,650 $1,650 $3,180 $3,180C Fine Woodworking 2650 $2,400 $2,400 $3,180 $3,180D Soliman Inc 2650 $2,100 $2,100 $3,180 $3,180E Jose Ortiz 1450 $952 $952 $1,740 $1,7405 13,435 $10,729 $15,395
TENANT MIX TENANT MIX SQUARE FEET
● Metro Retro
● Millwork Resource Inc
● Fine Woodworking
● Soliman Inc
● Jose Ortiz
● Metro Retro
● Millwork Resource Inc
● Fine Woodworking
● Soliman Inc
● Jose Ortiz
TENANT MIX INCOME TENANT MIX MARKET INCOME
● Metro Retro
● Millwork Resource Inc
● Fine Woodworking
● Soliman Inc
● Jose Ortiz
● Metro Retro
● Millwork Resource Inc
● Fine Woodworking
● Soliman Inc
● Jose Ortiz
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PROPERTY PHOTOS
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Front of building Side view
Units have high truss ceilings Units have large door entry
Units have bathrooms cul-de-sac street
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MAPS AND AERIALS
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
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SALE COMPARABLES
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Subject 2
1%
2%
3%
4%
5%
6%
7%
8%
Avg.
4.0
Cap Rate
Subject 1 2 3 4 5
$31
$62
$93
$124
$155
$186
$217
$248
Avg.
$213.33
Price per Sq. Ft.
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SALE COMPARABLES
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
S 7631 Alabama Ave7631 Alabama AveCanoga Park, CA 91304
Sale Price $2,750,000
Tenants 5
Price/Tenant $550,000
Price/SqFt $204.61
Cap Rate 3.2%
Year Built 1963
1 7630 Alabama Ave, Unit 37630 Alabama Ave, Unit 3Canoga Park, CA 91304
Sale Price $505,000
Tenants 1
Price/Tenant $505,000
Price/SqFt $202.32
Cap Rate N/A
Year Built 1963Sale Date 5/27/2016
2 7901 Canoga Park7901 Canoga ParkCanoga Park, CA 91304
Sale Price $2,525,000
Tenants 7
Price/Tenant $360,714
Price/SqFt $172.47
Cap Rate 4.0%
Year Built 1978Sale Date 7/21/2016
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SALE COMPARABLES
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
3 7742 Deering Ave7742 Deering AveCanoga Park, CA 91304
Sale Price $1,125,000
Tenants 1
Price/Tenant $1,125,000
Price/SqFt $245.20
Cap Rate N/A
Year Built 1961Sale Date 10/16/2017
4 21345 Deering Ct21345 Deering CtCanoga Park, CA 91304
Sale Price $2,160,000
Tenants 1
Price/Tenant $2,160,000
Price/SqFt $200.93
Cap Rate N/A
Year Built 1973Sale Date 5/18/2016
5 21423 Strathern St21423 Strathern StCanoga Park, CA 91304
Sale Price $2,380,000
Tenants 2
Price/Tenant $1,190,000
Price/SqFt $245.72
Cap Rate N/A
Year Built 1963Sale Date 10/25/2017
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SALE COMPARABLES
7631 Alabama AveCanoga Park, CA 91304
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
S 7631 Alabama AveCanoga Park, CA, 91304$2,750,000
1 7630 Alabama Ave, Unit 3Canoga Park, CA, 91304$505,000
2 7901 Canoga ParkCanoga Park, CA, 91304$2,525,000
3 7742 Deering AveCanoga Park, CA, 91304$1,125,000
4 21345 Deering CtCanoga Park, CA, 91304$2,160,000
5 21423 Strathern StCanoga Park, CA, 91304$2,380,000
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