Listing Price $1,900,000 Offering Memorandum 1021 N ... · Offering Memorandum | 1021 N Edinburgh...

Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood

1OFFERING MEMORANDUMListing Price $1,900,000

1021 N EDINBURGH AVEWEST HOLLYWOOD, CA 90046

• 2 UNITS REHABBED AND DELIVERED VACANT• STELLAR LOCATION• SALE SUBJECT TO COURT CONFIRMATION,

CALL PHIL SEYMOUR FOR COMPLETE DETAILS.

David Weinberger818.970.0915

[email protected] DRE #01349349

Phil Seymour310.612.9800

[email protected] #00630158


2DISCLAIMER

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due dili-gence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or rel-evance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transactionAll data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limita-tions as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appro-priate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Commercial in compliance with all applicable fair housing anvd equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or with-drawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.


3TABLE OF CONTENTS

Executive Summary

Property Highlights

Property Information

Financials

Comparables


4PROPERTY INFORMATION

8 600 SFTotal Unit Average Unit Size

1954 6,307 SFYear Built Lot Size

4,804 SF 8 SPACESBuilding Size Parking


5

1021 North Edinburgh Avenue has a Walk Score of 94 out of 100. This location is a Walker’s Paradise so daily errands do not require a car.

This location is in West Hollywood. Nearby parks include William S. Hart Park, Rosewood Park and Plummer Park.

94

60

58

Walk Score

Transit Score

Bike Score

Walker’s Paradise

Good Transit

Bikeable

Daily errands do not require a car.

Many nearby publictransportation option

Mostly flat, minimal bike lanes.

WALKABILITY


6FINANCIALS

FINANCIAL INDICATORS

Offering Price $1,900,000

Current CAP 3.0%

Market CAP 7.2%

Current GRM 20.0

Market GRM 10.8

Cost Per SF $396

Cost Per Unit $237,500

Cash on Cash Return 3.0%

Expenses Per Unit $4,601

Expenses Per Sq Ft $7.66

BUILDING DATA

Units 8

Year Built 1954

Lot Sq Ft 6,307

Bldg Gross Sq Ft 4,804

Parking Spaces 8

ESTIMATED ANNUALIZED EXPENSES

New Property Taxes $22,286

Utilities (Water & Power) $6,500

Property Insurance $1,922

Maintenance & Repairs $3,200

Pest Control & Cleaning $900

Reserves & Replacements $2,000

Total Estimated Expenses -$36,807

SOURCE OF INCOME CURRENT RENTS MARKET RENTS

# of Units Unit Type Avg. Rent Total Avg. Rent Income

6 1 Bed / 1 bath $809 $4,854 $1,650 $9,900

2 2 Bed / 2 bath $1,475 $2,950 $2,350 $4,700

Total Rental Income $7,804 $14,600

Laundry Income $100 $100

Total Monthly Income $7,904 $14,700

Total Annual Income $94,845 $176,400

EST. ANNUALIZED OPERATING DATA CURRENT MARKET

Scheduled Gross Income $94,845 $176,400

Less Vacancy 2.0% ($1,897) 2.0% ($3,528)

Gross Operating Income $92,948 $172,872

Less Expenses 40% ($36,807) 22% ($36,807)

Net Operating Income $56,140 $136,065

Notations:1) Real Estate Taxes have been underwritten based a tax rate of 1.172939

2) Property Insurance: Underwritten at .40 per SF

3) Maintenance & Repars: Based upon $400 per unit per year

4) Pest Control & Landscaping based upon $75 Per Month

5) Reserves & Replacements : Based upon $250 per unit per year.

6)Utiltites (Water, sewer, waste, gas, electical) based on $962 per unit / per year


7

* Estimated Square Footage

RENT ROLL

UNIT STATUS UNIT TYPE UNIT SF NOTATIONS CURRENT RENTPOST RENOVATION

MARKET RENT

1 Tenant 1 Bed / 1 Bath 584 $398 $1,650

2 Tenant 1 Bed / 1 Bath 584 $500 $1,650

3 Vacant 1 Bed / 1 Bath 584 Rehabbed $1,650 $1,650

4 Vacant 2 Bed / 1 Bath 650 Rehabbed $2,350 $2,350

5 Tenant 1 Bed / 1 Bath 584 $900 $1,650

6 Tenant 1 Bed / 1 Bath 584 $800 $1,650

7 Tenant 1 Bed / 1 Bath 584 $606 $1,650

8 Tenant 2 Bed / 1 Bath 650 $600 $2,350

TOTAL: *4,804 $7,804 $14,600


8SALES COMPS

Rent Comparables Summary1021 N Edinburgh Ave

17 $2,398 $2.54 3.4%No. Rent Comps Avg. Rent Per Unit Avg. Rent Per SF Avg. Vacancy Rate

RENT COMP LOCATIONS

RENT COMPS SUMMARY STATISTICS

Unit Breakdown Low Average Median High

Total Units

Studio Units

One Bedroom Units

Two Bedroom Units

Three Bedroom Units

8

0

0

0

0

20

4

6

8

1

14

0

5

4

0

57

48

20

38

19

Property Attributes Low Average Median High

1923Year Built

Number of Floors

Average Unit Size

Vacancy Rate

Star Rating

1

0 SF

0.0%

1962

2

1,029 SF

3.4%

1960

2

806 SF

3.2%

2017

4

1,416 SF

7.9%

2.4

9/13/2019Copyrighted report licensed to KW Commercial - 1612.

Page 2


9

Rent Comparables Summary1021 N Edinburgh Ave

Property Name/Address Rating Yr Built Units Avg Unit SF Studio 1 Bed 2 Bed 3 Bed Rent/SF

Property Size Asking Rent Per Month Per Unit

-Edinburgh Courtyard

57 1,416 - - $3,255 $4,302 $2.80833 N Edinburgh Ave

1 2017

-Romaine Towers

48 1,050 $2,834 - - - $2.708011 Romaine St

2 1965

-Romaine Apartments

25 1,000 - - $2,691 - $2.697925 Romaine St

3 1968

-La Ventana

15 1,344 - - $3,590 - $2.671031 N Crescent Heights…

4 1989

-1009 N Hayworth Ave

20 700 - $1,700 - - $2.435 1963


8 557 - $1,258 $1,517 - $2.376 1954

-8016-8020 Norton Ave

10 720 $1,567 $1,653 - - $2.277 1940

-Hayworth Apartments

38 1,200 - - $2,524 - $2.10924-944 N Hayworth Ave

8 1966

-7972 Norton Ave

9 805 - $1,180 $2,357 - $1.799 1958

-8010 Norton Ave

14 392 - $637 - - $1.6210 1923

-1010 N Crescent Heights…

11 - - $1,011 $2,247 - -11 1963


10 - - $444 $740 $1,665 -12 1959


8 - - $578 $1,081 - -13 1953


17 0 $1,513 $843 $1,009 - -14 1959

-Harper on Hayworth

24 - - $2,526 $1,100 - -1122 N Hayworth Ave

15 1960

-1045 N Edinburgh Avenu…

10 - - - $2,676 - -1045 N Edinburgh Ave

16 1958

-1009 N Edinburgh Ave

9 - $804 $956 $1,968 - -17 1971

-1021 N Edinburgh Ave

- - - - - - -1954


Page 3


10

Rent Comparables by Bedroom1021 N Edinburgh Ave

$2,560 $1,361 $2,544 $4,170Studio Comps One Bed Comps Two Bed Comps Three Bed Comps

Subject

-Subject

-Subject

-Subject

-

1 Bedroom 2 Bedroom 3 BedroomCurrent Conditions in Rent Comps Studio

Total Number of Units 60 98 136 20

Vacancy Rate 2.7% 3.7% 3.0% 5.0%

Asking Rent Per Unit $2,560 $1,361 $2,544 $4,170

Asking Rent Per SF $2.70 $2.12 $2.46 $3.03

Effective Rents Per Unit $2,548 $1,352 $2,532 $4,145

Effective Rents Per SF $2.68 $2.11 $2.45 $3.01

Concessions 0.5% 0.6% 0.5% 0.6%Changes Past Year in Rent Comps Studio 1 Bedroom 2 Bedroom 3 Bedroom

Year-Over-Year Effective Rent Growth 2.1% 11.6% -0.6% -5.3%

Year-Over-Year Vacancy Rate Change

12 Month Net Absorption in Units

0.3%

0

0.5%

0 0

0.4% 2.0%

0

EXISTING UNITS VACANT UNITS

ASKING RENT PER UNIT PER MONTH 12 MONTH NET ABSORPTION IN UNITS


Page 6

Rent Comparables by Bedroom1021 N Edinburgh Ave

$2,560 $1,361 $2,544 $4,170Studio Comps One Bed Comps Two Bed Comps Three Bed Comps

Subject

-Subject

-Subject

-Subject

-

1 Bedroom 2 Bedroom 3 BedroomCurrent Conditions in Rent Comps Studio

Total Number of Units 60 98 136 20

Vacancy Rate 2.7% 3.7% 3.0% 5.0%

Asking Rent Per Unit $2,560 $1,361 $2,544 $4,170

Asking Rent Per SF $2.70 $2.12 $2.46 $3.03

Effective Rents Per Unit $2,548 $1,352 $2,532 $4,145

Effective Rents Per SF $2.68 $2.11 $2.45 $3.01

Concessions 0.5% 0.6% 0.5% 0.6%Changes Past Year in Rent Comps Studio 1 Bedroom 2 Bedroom 3 Bedroom

Year-Over-Year Effective Rent Growth 2.1% 11.6% -0.6% -5.3%

Year-Over-Year Vacancy Rate Change

12 Month Net Absorption in Units

0.3%

0

0.5%

0 0

0.4% 2.0%

0

EXISTING UNITS VACANT UNITS

ASKING RENT PER UNIT PER MONTH 12 MONTH NET ABSORPTION IN UNITS


Page 6


11

One Bedroom Rent Comparables1021 N Edinburgh Ave

Property Name/Address Rating One Bedroom Rent Per Unit YearQuarterRent/SF

Change in Rent

1122 N Hayworth AveHarper on Hayworth

55.0%0.3%-$2,526

$2,525

1009 N Hayworth Ave-3.6%-0.9%$2.43

$1,700

8016-8020 Norton Ave1.5%0.1%$2.20

$1,653$1,653

1022 N Hayworth Ave1.5%0.1%$2.42

$1,258$1,258

7972 Norton Ave1.5%0.1%$1.57

$1,180$1,179

1010 N Crescent Heights Blvd1.5%0.1%-

$1,011$1,011

1009 N Edinburgh Ave1.5%0.1%-

$956$955

1023 N Hayworth Ave1.5%0.1%-

$843

8010 Norton Ave1.5%0.1%$1.62

$637$569 $715


$578$578


$444

$0 $750 $1,500 $2,250 $3,000


Page 8


12

Two Bedroom Rent Comparables1021 N Edinburgh Ave

Property Name/Address Rating Two Bedroom Rent Per Unit YearQuarterRent/SF

Change in Rent

1031 N Crescent Heights BlvdLa Ventana

-8.8%0.0%$2.67$3,590

833 N Edinburgh AveEdinburgh Courtyard

-1.2%0.2%$2.76$3,255

$3,255

7925 Romaine StRomaine Apartments

2.3%0.3%$2.69$2,691

$2,690

1045 N Edinburgh Ave1045 N Edinburgh Avenue Ap…

2.3%0.3%-$2,676

$2,675

924-944 N Hayworth AveHayworth Apartments

1.5%0.1%$2.10$2,524

$2,523

7972 Norton Ave1.5%0.1%$2.36

$2,357

1010 N Crescent Heights Blvd1.5%0.1%-

$2,247$2,247

1009 N Edinburgh Ave1.5%0.1%-

$1,968

1022 N Hayworth Ave1.5%0.1%$2.26

$1,517

1122 N Hayworth AveHarper on Hayworth

0.7%0.3%-$1,100


$1,081


$1,009$1,008


$740

$0 $1,000 $2,000 $3,000 $4,000


Page 9

Offering Memorandum1021 N Edinburgh Ave., West Hollywood

David Weinberger818.970.0915


Phil Seymour310.612.9800


Listing Price $1,900,000 Offering Memorandum 1021 N ... · Offering Memorandum | 1021 N Edinburgh...

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