colby portfolio OM - LoopNet · OFFERING SUMMARY Price $7,250,000 Down Payment 100% / $7,250,000...
Transcript of colby portfolio OM - LoopNet · OFFERING SUMMARY Price $7,250,000 Down Payment 100% / $7,250,000...
Offering Memorandum
1721-1723 COLBY AVELos Angeles, CA 90025
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
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to
be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other
person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to
provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of
interest in the subject property. The information contained herein is not a substitute for a thorough due diligence
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with
respect to the income or expenses for the subject property, the future projected financial performance of the
property, the size and square footage of the property and improvements, the presence or absence of contaminating
substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the
improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or
intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure
has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not
verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding
these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the
information provided. All potential buyers must take appropriate measures to verify all of the information set forth
herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017
Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & 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.
1721-1723 COLBY AVE
Los Angeles, CA
ACT ID Y0121600
2
1721-1723 COLBY AVE
3
INVESTMENT
OVERVIEW
OFFERING SUMMARY
Price $7,250,000
Down Payment 100% / $7,250,000
Loan Type All Cash
Lot Size (SF) 19,591
Price/SF $370.07
Lot Size (Acres) 0.45 acre(s)
Price/Acre $16,120,157
Price/Unit $302,083
Allowable Buildable SF 58,773
Number of Lots 3
Price/Lot $2,416,667
Type of Ownership Fee Simple
#
EXECUTIVE SUMMARY
OFFERING SUMMARY
#
1721-1723 COLBY AVE
4
1721-1723 COLBY AVE
4
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES *
Ucla Health System Auxiliary 17,004
Fcp Voteco LLC 12,224
Auge International 6,000
Smart & Final Holdings LLC 5,910
West Los Angeles V A Med Ctr 5,400
Anschutz Film Group 5,002
Mtv Networks 5,001
Greater Los Angeles Health 5,000
Taskus Inc 5,000
Team One 5,000
Earth Technology Corp USA 4,655
Cardiac Noninvasive Laboratory 4,604
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2016 Estimate Pop 47,534 295,976 591,223
2016 Census Pop 44,840 279,952 560,930
2016 Estimate HH 24,682 137,226 276,561
2016 Census HH 23,108 128,402 259,316
Median HH Income $67,608 $72,357 $73,173
Per Capita Income $50,911 $57,593 $58,894
Average HH Income $97,530 $122,174 $124,672
* # of Employees based on 5 mile radius
1721-1723 COLBY AVE
OFFERING SUMMARY
Prime West Los Angeles Location
3 Contiguous Lots totaling 19,591 sqft of R3 Zoning
Can Build 24 Units by Right Without Any Density Bonus
INVESTMENT HIGHLIGHTS
Marcus & Millichap, is pleased to present the opportunity to acquire 1721-1723 Colby Avenue, an LAR3-1 zoned property with a 19,591-square foot lot. The property
consists of three contiguous lots, currently containing a 1,597-square foot duplex, a 6,157-square foot seven unit apartment, and a vacant lot. This multifamily
redevelopment will be subject to rent control stabilization ordinance, located in the heart West Los Angeles. Built in 1957 and 1960 respectively, currently with below
market rents, this property represents a unique opportunity to acquire a development / value-add asset in a very prime area of Los Angeles with strong economic growth
and usually high barriers to entry.
1721-1723 Colby Ave, is located in the heart of West Los Angeles. The property is just one block south Santa Monica Blvd. and nestled a few blocks in between Barrington
and Sawtelle. This incredible location is just a short drive away from Brentwood, Westwood and Century City. Residents could also walk to nearby Japantown on Sawtelle
Blvd. The proeprty is also conveniently located near the 405 & 10 Freeways as well as the Expo Line’s Bundy Station, offerring easy access to get around the city.
The property is being offered in its current condition, allowing the buyer/developer income while they plan their add value options or ground up development.
INVESTMENT OVERVIEW
5
1721-1723 COLBY AVE
Property Photos
6
1721-1723 COLBY AVE
OFFERING SUMMARY
Current Rent Rolls
7
Unit # 4 is currently vacant
*Unit mix taken from Title, units might be larger with more bedrooms
REGIONAL MAP
1721-1723 COLBY AVE
8
LOCAL MAP
1721-1723 COLBY AVE
9
AERIAL PHOTO
1721-1723 COLBY AVE
10
AERIAL PHOTO
1721-1723 COLBY AVE
11
AERIAL PHOTO
1721-1723 COLBY AVE
12
AERIAL PHOTO
1721-1723 COLBY AVE
13
AERIAL PHOTO
1721-1723 COLBY AVE
14
1721-1723 COLBY AVE
15
MARKET
COMPARABLES
1721-1723 COLBY AVE
SALES COMPARABLES MAP
16
1721-1723 COLBY AVE
(SUBJECT)
1553 Armacost Ave
2412 Federal Ave
1427-1431 Greenfield Ave
11837 Kiowa Ave
SALES COMPARABLES
1
2
3
4
PROPERTY NAME1721-1723 COLBY AVE
SALES COMPARABLES
17
SALES COMPARABLES
Avg. $250,798
$0
$40,000
$80,000
$120,000
$160,000
$200,000
$240,000
$280,000
$320,000
$360,000
$400,000
1721-1723
Colby Ave
1553
Armacost
Ave
2412
Federal Ave
1427-1431
Greenfield
Ave
11837
Kiowa Ave
Average Price Per Buildable Unit
Avg.
$13,094,148
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
1721-1723
Colby Ave
1553
Armacost
Ave
2412
Federal Ave
1427-1431
Greenfield
Ave
11837
Kiowa Ave
Average Price Per Acre
Avg. $300.60
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
$500.00
1721-1723
Colby Ave
1553
Armacost
Ave
2412
Federal Ave
1427-1431
Greenfield
Ave
11837
Kiowa Ave
Average Price Per Square Foot
SALES COMPARABLES SALES COMPS AVG
PROPERTY NAME
MARKETING TEAM
1721-1723 COLBY AVE
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
18
SALES COMPARABLES
Asking Price $7,250,000
Down Payment $7,250,000
Down Payment % 100%
Price/SF $370.07
Lot Size (Acres) 0.45 acre(s)
Price/Acre $16,120,157
1721-1723 COLBY AVE1721-1723 Colby Ave, Los Angeles, CA, 90025
1
Close of Escrow 8/24/2016
Sales Price $1,700,000
Zoning R3
Price/SF $243.92
Lot Size (Acres) .16
Price/Acre $10,625,000
1553 ARMACOST AVE1553 Armacost Ave, Los Angeles, CA, 90025
2
Close of Escrow 10/31/2017
Sales Price $3,250,000
Zoning R3
Lot Size (SF) 4,856
Price/SF $233.16
Lot Size (Acres) .32
Price/Acre $10,156,250
2412 FEDERAL AVE2412 Federal Ave, Los Angeles, CA, 90064
Price Per Buildable Door: $302,083.33 Price Per Buildable Door: $212,500Price Per Buildable Door: $191,176.47
PROPERTY NAME
MARKETING TEAM
1721-1723 COLBY AVE
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
19
SALES COMPARABLES
3
Close of Escrow 6/27/2017
Sales Price $4,075,000
Down Payment % 100%
Zoning R3
Lot Size (SF) 13,500
Price/SF $301.77
Lot Size (Acres) .31
Price/Acre $13,145,161
1427-1431 GREENFIELD AVE1427-1431 Greenfield Ave, Los Angeles, CA, 90025
4
Close of Escrow 11/18/2015
Sales Price $9,999,999
Zoning R3
Price/SF $423.56
Lot Size (Acres) .54
Price/Acre $18,450,183
11837 KIOWA AVE11837 Kiowa Ave, Los Angeles, CA, 90049
Price Per Buildable Door: $254,687.5
Price Per Buildable Door: $344,827.55
8
1721-1723 COLBY AVE
RENT COMPARABLES MAP
1721-1723 COLBY AVE
(SUBJECT)
1831 Sawtelle Blvd
1759 Beloit Ave
1810 Pandora Ave
1810-16 Selby Ave
10815 Missouri Ave
1539 Beloit Ave
1526 Armacost Ave
4
7
8
9
11
20
12
14
15
16
17
13
18
10
4
7
1
2
3
5
6
20
PROPERTY NAME1721-1723 COLBY AVE
RENT COMPARABLES
21
AVERAGE RENT - MULTIFAMILY
Avg. $4,392
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
1831
Sawtelle
Blvd
1759
Beloit Ave
1810
Pandora Ave
1810-16
Selby Ave
10815
Missouri
Ave
1539
Beloit Ave
1526
Armacost
Ave
3 Bedroom
Avg. $2,880
$0
$300
$600
$900
$1,200
$1,500
$1,800
$2,100
$2,400
$2,700
$3,000
1831
Sawtelle
Blvd
1759
Beloit Ave
1810
Pandora Ave
1810-16
Selby Ave
10815
Missouri
Ave
1539
Beloit Ave
1526
Armacost
Ave
1 Bedroom
Avg. $4,304
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
1831
Sawtelle
Blvd
1759
Beloit Ave
1810
Pandora Ave
1810-16
Selby Ave
10815
Missouri
Ave
1539
Beloit Ave
1526
Armacost
Ave
2 Bedroom
PROPERTY NAME
MARKETING TEAM
1721-1723 COLBY AVE
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
22
YEAR BUILT: 2016
1
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 1 $2,696
Total/Avg. 1 $2,696
1831 SAWTELLE BLVD1831 Sawtelle Blvd, Los Angeles, CA, 90025
YEAR BUILT: 2009
2
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 1 $2,995
Total/Avg. 1 $2,995
1759 BELOIT AVE1759 Beloit Ave, Los Angeles, CA, 90025
3
YEAR BUILT: 2017
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 1 $2,950
2 Bdr 2 Bath 1 $4,290
3 Bdr 2 Bath 1 $4,590
Total/Avg. 3 $3,943
1810 PANDORA AVE1810 Pandora Ave, Los Angeles, CA, 90025-5019
PROPERTY NAME
MARKETING TEAM
1721-1723 COLBY AVE
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
23
YEAR BUILT: 2013
4
Unit Type Units SF Rent Rent/SF
2 Bdr 2 Bath 1 $4,825
Total/Avg. 1 $4,825
1810-16 SELBY AVE1810 Selby Ave, Los Angeles, CA, 90025
YEAR BUILT: 2017
5
Unit Type Units SF Rent Rent/SF
2 Bdr 2 Bath 1 $3,797
Total/Avg. 1 $3,797
10815 MISSOURI AVE10815 Missouri Ave, Los Angeles, CA, 90025
6
YEAR BUILT: 2014
Unit Type Units SF Rent Rent/SF
3 Bdr 2 Bath 1 $4,295
Total/Avg. 1 $4,295
1539 BELOIT AVE1539 Beloit Ave, Los Angeles, CA, 90025
PROPERTY NAME
MARKETING TEAM
1721-1723 COLBY AVE
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
24
YEAR BUILT: 2015
7
Unit Type Units SF Rent Rent/SF
3 Bdr 2 Bath 1 $4,290
Total/Avg. 1 $4,290
1526 ARMACOST AVE1526 Armacost Ave, Los Angeles, CA, 90025
1721-1723 COLBY AVE
25
MARKET
OVERVIEW
MARKET OVERVIEW
OVERVIEW
WESTSIDE CITIES, LOS ANGELES
GROWING TECH SECTOR
The region’s growing high-tech sector has awarded the Santa Monica/Venice
area the nickname of “Silicon Beach,” attracting companies such as Google.
WELL-EDUCATED WORKFORCE
Area residents are well educated. A majority of adults possess at least a
bachelor’s degree and more than a quarter also have a graduate degree.
HIGH INCOMES
Educational attainment translates into a median household income that is well
above the national average. High home prices, however, keep the
homeownership level near 40 percent.
The Westside Cities area is located west of downtown Los Angeles and
north of Los Angeles International Airport. The market contains the
following submarkets: Brentwood-Westwood-Beverly Hills; Palms-Mar
Vista; and Santa Monica-Marina del Rey. Cities from Venice to Playa Del
Rey to Culver City are all located within these submarkets. The region is
projected to add 11,600 residents through 2021, resulting in the
formation of more than 6,500 households.
Major employers in the region include entertainment giants 21st Century Fox and Sony Pictures.
While roughly 20,000 jobs are in the motion-picture industry, ancillary businesses tied to
entertainment are a major source of employment, as is marketing and advertising.
The large healthcare industry is represented by UCLA Medical Group, Cedars-Sinai Medical Center,
St. John’s Medical Center and the local VA.
Educational institutions including UCLA, Loyola Marymount and Pepperdine University employ more
than 42,000 workers.
Tourism and retail shopping are major players in the local economy.
39.1
2016MEDIAN AGE:
$76,700
2016 MEDIAN HOUSEHOLD INCOME:
DEMOGRAPHICS
U.S. Median:
37.7U.S. Median:
$57,200
647K
2016POPULATION:
Growth2016-2021*:
1.8%
300K
2016HOUSEHOLDS:
2.2%
Growth2016-2021*:
ECONOMY
METRO HIGHLIGHTS
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
1721-1723 COLBY AVE
26
PROPERTY NAME
MARKETING TEAM
1721-1723 COLBY AVE
DEMOGRAPHICS
Source: © 2016 Experian
Created on November 2017
POPULATION 1 Miles 3 Miles 5 Miles
2021 Projection
Total Population 48,196 301,002 602,127
2016 Estimate
Total Population 47,534 295,976 591,223
2010 Census
Total Population 44,840 279,952 560,930
2000 Census
Total Population 43,728 270,547 543,208
Daytime Population
2016 Estimate 70,440 445,766 808,448
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
2021 Projection
Total Households 25,033 139,954 282,881
2016 Estimate
Total Households 24,682 137,226 276,561
Average (Mean) Household Size 1.92 2.04 2.07
2010 Census
Total Households 23,108 128,402 259,316
2000 Census
Total Households 23,172 126,772 253,058
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
2016 Estimate
$250,000 or More 5.21% 9.60% 9.98%
$200,000 - $249,999 3.05% 4.84% 4.95%
$150,000 - $199,999 7.01% 7.74% 7.77%
$125,000 - $149,999 5.89% 5.88% 5.97%
$100,000 - $124,999 9.52% 9.09% 9.21%
$75,000 - $99,999 14.20% 11.31% 11.07%
$50,000 - $74,999 17.35% 15.50% 15.49%
$35,000 - $49,999 11.14% 10.11% 9.96%
$25,000 - $34,999 7.37% 6.53% 6.67%
$15,000 - $24,999 8.26% 7.55% 7.69%
Under $15,000 10.99% 11.83% 11.24%
Average Household Income $97,530 $122,174 $124,672
Median Household Income $67,608 $72,357 $73,173
Per Capita Income $50,911 $57,593 $58,894
27
PROPERTY NAME
MARKETING TEAM
1721-1723 COLBY AVE
DEMOGRAPHICS
Source: © 2016 Experian
Created on November 2017
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Population by Age
0 to 4 Years 4.36% 4.39% 4.67%
5 to 14 Years 4.70% 7.02% 7.77%
15 to 17 Years 1.18% 1.97% 2.27%
18 to 19 Years 0.84% 3.60% 2.61%
20 to 24 Years 9.47% 10.83% 8.14%
25 to 29 Years 16.03% 10.22% 9.43%
30 to 34 Years 14.39% 9.78% 9.65%
35 to 39 Years 10.19% 7.79% 8.06%
40 to 49 Years 13.17% 13.02% 14.14%
50 to 59 Years 9.68% 11.57% 12.51%
60 to 64 Years 4.35% 5.14% 5.48%
65 to 69 Years 3.73% 4.43% 4.71%
70 to 74 Years 2.42% 3.15% 3.33%
75 to 79 Years 1.99% 2.38% 2.45%
80 to 84 Years 1.49% 1.93% 1.99%
Age 85+ 2.03% 2.77% 2.79%
Median Age 34.62 36.30 38.33
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Population 25+ by Education Level
2016 Estimate Population Age 25+ 37,765 213,647 440,754
Elementary (0-8) 3.74% 2.36% 3.17%
Some High School (9-11) 3.07% 3.00% 3.35%
High School Graduate (12) 8.13% 9.32% 10.62%
Some College (13-15) 13.24% 15.34% 16.07%
Associate Degree Only 4.06% 5.15% 5.28%
Bachelors Degree Only 41.29% 36.21% 34.96%
Graduate Degree 26.02% 27.96% 25.57%
28
Income
In 2016, the median household income for your selected geography is
$67,608, compare this to the US average which is currently $54,505.
The median household income for your area has changed by 45.24%
since 2000. It is estimated that the median household income in your
area will be $81,127 five years from now, which represents a change
of 20.00% from the current year.
The current year per capita income in your area is $50,911, compare
this to the US average, which is $29,962. The current year average
household income in your area is $97,530, compare this to the US
average which is $78,425.
Population
In 2016, the population in your selected geography is 47,534. The
population has changed by 8.70% since 2000. It is estimated that the
population in your area will be 48,196.00 five years from now, which
represents a change of 1.39% from the current year. The current
population is 49.61% male and 50.39% female. The median age of
the population in your area is 34.62, compare this to the US average
which is 37.68. The population density in your area is 15,128.20
people per square mile.
Households
There are currently 24,682 households in your selected geography.
The number of households has changed by 6.52% since 2000. It is
estimated that the number of households in your area will be 25,033
five years from now, which represents a change of 1.42% from the
current year. The average household size in your area is 1.92 persons.
Employment
In 2016, there are 65,008 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
82.03% of employees are employed in white-collar occupations in
this geography, and 17.88% are employed in blue-collar occupations.
In 2016, unemployment in this area is 4.53%. In 2000, the average
time traveled to work was 27.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
59.85% White, 2.83% Black, 0.12% Native American and 22.93%
Asian/Pacific Islander. Compare these to US averages which are:
70.77% White, 12.80% Black, 0.19% Native American and 5.36%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 17.59% of the current year
population in your selected area. Compare this to the US average of
17.65%.
PROPERTY NAME
MARKETING TEAM
1721-1723 COLBY AVE
Housing
The median housing value in your area was $647,775 in 2016,
compare this to the US average of $187,181. In 2000, there were
4,600 owner occupied housing units in your area and there were
18,572 renter occupied housing units in your area. The median rent at
the time was $915.
Source: © 2016 Experian
DEMOGRAPHICS
29
8
1721-1723 COLBY AVE
DEMOGRAPHICS
30
TRAFFIC COUNTYEAR COUNT
2009 3,615
2009 2,892
2009 2,500
MARKETING PLAN
#
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAME1721-1723 COLBY AVE
PRICING AND VALUATION MATRIX
PROPERTY NAME1721-1723 COLBY AVE
31
MARKET OVERVIEW
Source: © 2016 Experian
31