CARLTON WAY LOS ANGELES, CA · 2016. 11. 9. · REAL ESTATE INVESTMENTS EXECUTIVE SUMMARY RECENT...

5535CARLTON WAY

LOS ANGELES, CA

OFFERING MEMORANDUMPACIFIC PARTNERS

REAL ESTATE INVESTMENTS

Exclusive Listing Agents

ZACHARY FREEHLING(310) 592-0833CalBRE 01879326

JASON SHENITZER(310) 586-0316CalBRE 01949266

PACIFIC PARTNERSREAL ESTATE INVESTMENTS

EXECUTIVESUMMARY

EXECUTIVE SUMMARY

RECENTUPGRADES

BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

OFFERING SUMMARY

PURCHASE PRICE

DOWN PAYMENT

CURRENT CAP

PROPERTY HIGHLIGHTS

• 36 units in a prime Hollywood location• Gorgeous turnkey property • Strong cash flowing asset • Large spacious units • Brand-new intercom system• Near Hollywood / Western Metro line• Property has been extensively rehabbed• New gym & additional common area upgrades• Subterranean parking

THE OFFERING

5535 Carlton Way is a 36-unit multi-family apartment building located in Hollywood, CA 90028. The property is centrally located on Carlton Way between Western Ave. and Wilton Pl. directly south of Hollywood Blvd.

The 36-unit property consists of approximately 26,403 sq. ft. and sits on approximately 17,193 sq. ft. of land. The building is made up of 32 large one bedroom units, 3 two bedroom units and 1 studio. The property has been thoroughly upgraded throughout, including the additions of a large private gym, furnished back patio and private storage lockers. The property has 34 parking spaces located in a subterranean garage with elevator access to all floors.

5535 Carlton Way is an excellent investment opportunity that offers a turnkey property in one of the best rental markets in Los Angeles. This investment provides strong cash flow from day one and the ability to grow rents as the area continues to mature, while being able to appeal to a slightly more price sensitive demographic by undercutting the brand new amenitized neighboring properties by approximately 20%.


$12,000,000

$6,000,000

4.30%


EXECUTIVE SUMMARY

RECENTUPGRADES

BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

Purchase Price: $12,000,000 Aprox Building Sq Footage: 26,403 sq. ft.Down Payment: 50% $6,000,000 Approximate Lot Size: 17,193 sq. ft.Legal Units: 36 Approximate Age: 1965Price Per Unit: $333,333 Cost per Net RSF: $454.49Current GRM: 15.27 Current CAP: 4.30%Pro Forma GRM: 13.08 Pro Forma CAP: 5.36%Available Financing: $6,000,000 -$25,620.98

3.10% fixed for 5 yrs. Pmt = $25,621 per month

Current Rents Market RentsScheduled Gross Income: $785,772 $917,160Vacancy Allowance: $23,573 3% $27,515 3%Gross Operating Income: $762,199 $889,645Less Expenses: $246,410 31% $246,410 27%Net Operating Income: $515,789 $643,235Less Loan Payment: $307,452 $307,452Cash-On-Cash Return: $208,337 3.47% $335,783 5.60%Plus Principal Reduction: $123,192 $123,192Total Return Before Taxes: $331,529 5.53% $458,976 7.65%

Unit Mix and Rent ScheduleActual Rents Pro Forma Rents Taxes New: 1.22% $146,160

Management Fee: $23,573No. Units Beds/Baths Rent/Unit Income Rent/Unit Income Repairs: $15,816

Property Insurance: $9,2411 Studio $1,420 $1,420 $1,500 $1,500 Utilities: $25,9203 2+1 $2,375_$2,400 $7,175 $2,650 $7,950 Reserves: $6,200

32 1+1 $675-$2,050 $55,926 $2,050 $65,600 On-Site Mgr. $14,100Landscaping: $600Trash: $4,800

Monthly Rent: $64,521 $75,050Additional Income: Laundry/Storage $960 $1,380 All Expenses Are Approximate

Monthly Income: $65,481 $76,430 Total Expenses: $246,410Annual Income: $785,772 $917,160 Per Net Sq. Ft: $9.33

Per Unit: $6,845

*36 units located in Prime Hollywood. *Property has been extensively rehabbed. *New gym and additional common area upgrades.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to theaccuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

5535 Carlton Way Los Angeles, CA 90028

Zac FreehlingPacific Partners (310) 586-0340 pacific partnersla.com

FINANCIAL SUMMARY

EXECUTIVE SUMMARY

RECENTUPGRADES

BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

RENT ROLL


101 1+1 $1,825 $2,050

102 1+1 $716 $2,050103 1+1 $1,825 $2,050104 1+1 $1,825 $2,050105 2+1 $2,400 $2,650106 Studio $1,420 $1,500107 1+1 $1,800 $2,050108 1+1 $1,850 $2,050 Vacant109 1+1 $1,800 $2,050110 1+1 $1,825 $2,050111 1+1 $1,825 $2,050112 1+1 $1,825 $2,050201 1+1 $1,800 $2,050202 1+1 $1,800 $2,050203 1+1 $1,825 $2,050204 1+1 $1,825 $2,050205 2+1 $2,375 $2,650206 1+1 $1,825 $2,050207 1+1 $1,825 $2,050208 1+1 $1,825 $2,050

Unit # Bed + Bath Actual Rent Pro Forma Rent Information

EXECUTIVE SUMMARY

RECENTUPGRADES

BUILDINGAMENITIES

LOCATIONSUMMARY

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RENT ROLL


209 1+1 $1,850 $2,050210 1+1 $1,850 $2,050 On-Site Manager211 1+1 $1,825 $2,050212 1+1 $2,000 $2,050301 1+1 $1,800 $2,050302 1+1 $1,825 $2,050303 1+1 $1,800 $2,050 Vacant

Unit # Bed + Bath Actual Rent Pro Forma Rent Information

304 1+1 $826 $2,050

305 2+1 $2,400 $2,650306 1+1 $1,800 $2,050307 1+1 $1,800 $2,050308 1+1 $1,800 $2,050309 1+1 $1,800 $2,050310 1+1 $1,800 $2,050311 1+1 $1,975 $2,050 Vacant312 1+1 $804 $2,050

ADDITIONAL $960 $1,380MONTHLY TOTAL $64,521 $75,050YEARLY TOTAL $785,772 $917,160

Modern Light Fixtures

Dark Wood Flooring

New GraniteCountertops

Upgraded Cabinets

Stainless Steel Appliances

New Tub & Fixtures

New Granite, Sink & Mirror

New Paint

New AC Unit

New Blinds

INVESTMENTHIGHLIGHTS

• An opportunity to acquire a 36 unit apartment complex located in the heart of Hollywood, CA.

• The Carlton Apartments have been extensively renovated including major systems upgrades and significant cosmetic upgrades.

• Two beautiful amenities have been added to the property which include a brand new gym and upscale community patio.

• The Carlton Apartments are made up of mostly one bedroom units which are the most highly sought after unit type in the Hollywood neighborhood.

• Year over year rent growth in Los Angeles for 2015 was 4.2%.

• Projected rental growth 5.6% in LA for 2016

• US Census Bureau shows that the vacancy rate in Los Angeles dropped to 2.5 percent in the last three months of 2015. That’s down from 3.8% at the beginning of 2015. Well below the national average of 7%.

• At the end of 2015, the only “major” metro areas with lower vacancy rates then LA were San Jose, CA; Portland, OR: and Allentown, PA

A UNIQUE OPPORTUNITY EXCEPTIONAL MARKET FUNDAMENTALS

INVESTMENTHIGHLIGHTS

• The Carlton Apartments are near many local amenities. A few highlights are Griffith Park, Hollywood Walk of Fame, Pantages Theatre, Dolby Theatre, Hollywood & Highland Shopping Corridor and many nightlife attractions.

• Less than a 3 minute walk from the Hollywood / Western Metro station this provides quick access to Downtown and many more Los Angeles destinations.

• The subject property is less than a mile from many employment hubs including Paramount Studios, Netflix, Bronson Studios, Nickelodeon Studios, CNN

Plaza, Kaiser Permanente Hospital, Children’s Hospital and Emerson College of the Arts.

• Accessibility to major thoroughfares including the 101 Freeway, 134 Freeway, 110 Freeway and Interstate 10.

ACCESSIBLE TO LIFESTYLE AMENITIES

TENANT PARKING MAP


Laundry

Elevator

35

34

33

32

31

30

29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

EXECUTIVE SUMMARY

RECENTUPGRADES

BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

• 34 parking spaces

• Gated secure entry for parking garage

• Private storage spaces for tenants

• New paint and re-striped

• Remodeled laundry room

RECENTUPGRADES

• Exterior siding

• Exterior paint

• Landscaping

• New sprinkler system on timer

• Astroturf in the back

• Lawn furniture

• Intercom

• New entry gates

• New entry tile

• New glass front entry doors with magnetic locks

• Lobby wallpaper & furniture

• New mailboxes

• Gym conversion

• Gym equipment

• Re-piped stacks 102, 108, 106, 105 (upgraded to meet LADBS plumbing code)

• Remodeled elevator cab

• Exterior/common area lighting

• Installed storage spaces

• New paint in garage & restriped spaces

• Laundry room remodel, with venting brought up to LADBS code

EXECUTIVE SUMMARY

RECENTUPGRADES

BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

RECENT UPGRADES REMODELED UNITS


• New paint• New flooring• Granite countertops • New kitchen sink • New plumbing fixtures throughout• All new electrical fixtures• New shower doors• All new smoke & carbon monoxide detectors• Stainless steel appliances: new fridge, stove, &

dishwasher• New cooktops• New air conditioners • Newly retrofitted gas heaters• All new screens

BUILDINGAMENITIES

• New private gym with brand new equipment

• Gated & secure underground parking

• Keyless intercom entrance system for all tenants

• Remodeled elevator

• Onsite laundry room

• Stainless steel appliances

EXECUTIVE SUMMARY

RECENT UPGRADES

BUILDING AMENITIES

LOCATIONSUMMARY

RECENTCOMPS

BUILDING AMENITIES


LOCATIONSUMMARY

5535 Carlton Way is centrally located in Hollywood CA. Located just south of Hollywood Blvd., west of Western and east of Wilton Pl. It is situated in a fantastic Los Angeles rental market. Tenants are a short walk from the Metro Line, Griffith Park and much more on Hollywood Blvd. as well as a short drive from many of Los Angeles employment hubs. Beyond the Metro Line, tenants are a short distance from the 101 Freeway which provides a quick commute to Downtown Los Angeles and the San Fernando Valley.

EXECUTIVE SUMMARY

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BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

LOCATION DETAILS


Via WalkScore.com

90

68

64

WALKSCORE

TRANSITSCORE

BIKESCORE

Average Household Income: $58,342Population: 104,000Median Age: 33.2Household Size Distribution – 1 Person 54% 2-3 People 39%Owner Occupied Housing Units - 5%Renter Occupied Housing Units – 95%

EXECUTIVE SUMMARY

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HOLLYWOOD DEMOGRAPHICS


The list of things to do in Hollywood boasts big attractions, like the Hollywood Walk of Fame and Universal Studios, but it holds plenty of lesser-known places to visit, too. A daytime visit can easily become an all-night affair because Hollywood has no shortage of restaurants and bars, from celebrity hangouts to some of LA’s classiest lobby lounges. Whether you’re a visitor hunting for star tours or a local looking to get off Hollywood Boulevard, you’re sure to find something to enjoy in LA’s most famous neighborhood.

EXECUTIVE SUMMARY

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BUILDINGAMENITIES

LOCATIONSUMMARY

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NEIGHBORHOOD DETAILS: HOLLYWOOD


• Currently under-construction Camden Project apartment complex at Vine and Selma which will include 200 upscale units

• 100,000 sq feet of office space coming to the former location of Molly’s Burgers stand on the northwest corner of Vine and Selma

• 300,000 sq ft of more office space coming on line next to the Pickford Center on Vine

• New 112-room Hampton Inn Hotel coming to where the Vagabond Inn once stood on Vine & Lexington (currently under construction)

• 64-room Morgan or Marriott Hotel on Cahuenga between Sunset and Selma on the site of the current Certified Printers building

• 182-room Dream Hotel on Selma, just west of Cahuenga, currently under construction from the ground up

• 76-room Mama Shelter Hotel, currently renovating the building next to the historic Citizen-News Building on the southwest corner of Wilcox and Selma

• Future hotels or student housing in the former Mark Twain and Gilbert hotels on Wilcox

• 225-room Kimpton Hotel at Argyle and Yucca

• Next phase of Clarett West’s Eastown project will bring 500 new apartments to the parking lot space currently across from the Pantages Theatre

• New Palladium Tower apartment buildings surrounding the landmark Hollywood Palladium on Sunset. These would feature either 731 market-rate apartments or 598 apartments and 250 hotel rooms

• European-style boutique hotel called 80 Cool Rooms (featuring, natch, 80 rooms) proposed for a small lot on Hollywood Blvd at St. Andrews Pl.

Office Space | Hotel Projects | Apartment Developments

EXECUTIVE SUMMARY

RECENTUPGRADES

BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

HOLLYWOOD’S DEVELOPMENT BOOM


Hollywood is expecting a 68.6 percent increase in population between 2015 and 2020.

EXECUTIVE SUMMARY

RECENTUPGRADES

BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

NEW APARTMENT DEVELOPMENTS


• 5750 Hollywood Blvd: 161 units, 5,700 sq. ft. of street-level retail

• 1350 N Western Ave: 254 apartments plus retail

• 6220 Yucca St: 191 units• 6215 Sunset Blvd: 731 units &

14,000 sq. ft. of retail• 1755 Argyle: 118-story tower

with 114 luxury units• 1540 N Vine St: 287 units• 1550 N El Centro Ave:

Residences, hotel & office space

• 1311 N Cahuenga Blvd: 389 units

• 620 Sunset Blvd: 200 units, 4,700 sq. ft. of retail

• 6201 Hollywood Blvd: 535 units, ground floor retail

5535 Carlton Way

Hollywood’s hotel boom shows no signs of slowing. Whether they’re bringing a new art gallery with them or setting their sights on snagging Millennials’ money, these new hotels are proof that Hollywood’s hotel hotness is still on the rise.

EXECUTIVE SUMMARY

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BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

NEW HOTEL DEVELOPMENTS


• Dream Hollywood

• Hotel Argyle

• Thompson Hollywood Hotel

• 55-Room Hotel

• 50-Room Boutique Hotel

• Millennium Hollywood

• Columbia Square

• CitizenM

• 260-Room Hotel

• Tommie Hotel

• Crossroads of the World

• CIM Group Mixed Use

• Dream 2

• 134-Room Luxury Hotel

RECENTCOMPS

EXECUTIVE SUMMARY

RECENTUPGRADES

BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

RECENT SALES COMPS


1321 Sycamore Ave. 90028SOLD PRICE $15,500,000

PRICE PER UNIT $397,436

PRICE PER SQ FT $482.55

UNITS 39

MIX 6 (0+1), 15 (1+1), 18 (2+2)(2+1)

SQUARE FOOTAGE 32,121

YEAR BUILT 1987

SOLD 10/01/15

1655 N St Andrews St. 90028SOLD PRICE $5,380,000



UNITS 14

MIX 14 (1+)


YEAR BUILT 1957

SOLD 02/03/16

1255 N Orange Dr 90038SOLD PRICE $10,513,500



UNITS 33

MIX 9 (0+1), 21 (1+1), 3 (2+1)


YEAR BUILT 1987

SOLD 11/23/15

EXECUTIVE SUMMARY

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BUILDINGAMENITIES

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RECENT SALES COMPS


1522 N Vista Pl 90046SOLD PRICE $8,526,000



UNITS 24

MIX 6 (0+1), 6 (1+1), 12 (2+2)


YEAR BUILT 1987

SOLD 11/20/15

1937 N Bronson Ave 90028SOLD PRICE $3,800,000



UNITS 12

MIX 1 (0+1), 8 (1+1), 3 (2+1)


YEAR BUILT 1961

SOLD 06/23/16

1425 N Crescents Heights 90046SOLD PRICE $1,425,000



UNITS 24

MIX 18 (1+2), 6 (2+2)


YEAR BUILT 1959

SOLD 09/17/15

EXECUTIVE SUMMARY

RECENTUPGRADES

BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

RENT SURVEY


1660 Wilton Pl 5643 Carlton Way 1817 Garfield Pl #6STUDIO $1,875

2 BED $2,700

1 BED $1,950

2 BED $2,495

2 BED $2,975

1937 N Bronson Ave 6337 Primrose Ave 6500 Yucca St$1,975 1 BED $1,995 1 BED $2,0651 BED

EXECUTIVE SUMMARY

RECENTUPGRADES

BUILDINGAMENITIES

LOCATIONSUMMARY

RECENTCOMPS

RENT SURVEY


6201 Hollywood Blvd 1480 Vine St 6253 Hollywood Blvd1 BED $2,583+ 1 BED $3,110+ 1 BED $3,250

1734 N Mariposa Ave 6038 Carlton Way #305$2,850 1 BED $3,3001 BED

Newly Constructed Amenitized Properties

1600 Vine St1 BED $3,000

PRESENTED BY:

ZAC FREEHLINGCalBRE 01879326(310) 592-0833

[email protected]

©2016 Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. All Rights Reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates fully supports the principles of the Equal Opportunity Act. Each Office is Independently Owned and Operated. Broker/Agent does not guarantee the accuracy of the square footage, lot size or other information concerning the conditions or features of the property provided by the seller or obtained from Public Records or other sources. Information deemed reliable but not guaranteed

JASON SHENITZERCalBRE 01949266(310) 402-6407

[email protected]

DAVID REGALADOCalBRE 01901236(253) 905-8714

[email protected]

MAX LUNDCalBRE 01956125(323) 510-1055

[email protected]

CARLTON WAY LOS ANGELES, CA · 2016. 11. 9. · REAL ESTATE INVESTMENTS EXECUTIVE SUMMARY RECENT...

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