Silicon Beach Development

Transcription

1 For more information contact: Managing Director Casey Lins Associate Unit Development Opportunity Contemporary Layouts w / Kitchen Islands Side & Rear Alley Access Currently 3 Duplex Properties, Bungalow Style Competitively Priced Under $153,000 / Dev. Unit! Phone: Fax: Manhattan Beach Blvd Manhattan Beach, CA

2 Table of Contents Property Description Maps and Aerials Existing Property Details Pro Forma Summary Unit Mix Report Current Duplex Rent Comps Proposed Development Development Overview Proposed Rent Roll Recent Construction Rent Comps Plan Cover Sheet Ground Level / Parking First Floor Second Floor Third Floor Roof / Roof Decks / Access Comparable Sales Sales Comparables

3 Property Description Silicon Beach Residential 18 INVESTMENT SUMMARY Investment / Development Opportunity in Silicon Beach Residential Community of Playa Vista. This community is benefiting from a massive influx of highly educated, well paid workers to the tech community. Major redevelopment in both residential and commercial is contributing to a "seismic shift" in the landscape and demographics of the area. New projects like this are extremely well positioned to accommodate tomorrow's highly educated, young, well paid residents. Approved 18 unit project w includes a density bonus. 14,965 SF proposed building. 2 Units shall be designated as Very Low Income. 16 Units full market rent. Top floor units have lofts and roof decks. Most units have a Balcony. INVESTMENT OPTIONS 1. Build now with current plans. It is estimated that the total cost to revenue would be around 13X and 5.5% CAP with built in equity up to around $2,500,000. The current plans are available. See the section titled PROPOSED DEVELOPMENT for details. 2. Hold and build later. Currently there are 3 duplex properties on 3 lots for a total of 6 units. Each unit is estimated to be 762 SF, is single level, and in a bungalow style. One of the units was legally converted into a 1 bed 2 Bath + Den. Additional units could potentially be converted to accommodate more baths and sleeping areas. With unit turn-over one could potentially rent existing units for market rate returns, or simply hold, and build later. The Income and Expenses outlined in the EXISTING PROPERTY DETAILS column illustrate this option. These estimations and projections are for marketing purposes only and should not be considered to be fully validated. Buyer to conduct his own investigations.

4 Maps and Aerials

5 Existing Property Details

6 Pro Forma Summary UNIT MIX & MONTHLY SCHEDULED INCOME Type Units Actual Total Market Total Bungalow 1 $685 $685 $2,150 $2, D Bungalow 1 $1,639 $1,639 $2,450 $2, Bungalow 1 $1,530 $1,530 $2,150 $2, Bungalow 1 $598 $598 $2,150 $2, Bungalow 1 $669 $669 $2,150 $2, Bungalow 1 $727 $727 $2,150 $2,150 INVESTMENT SUMMARY TOTALS 6 $5,848 $13,200 Price: $2,750,000 Year Built: 1953 Units: 6 Price/Unit: $458,333 RSF: 4,032 Price/RSF: $ Lot Size: 10,540 sf Floors: 1 ANNUALIZED INCOME Actual Market Gross Potential Rent $70,172 $158,400 Less: Vacancy $0 $0 Effective Gross Income $70,172 $158,400 Less: Expenses ($37,500) ($39,300) Net Operating Income $32,672 $119,100 APN: , Cap Rate: 1.19% Market Cap Rate: 4.33% GRM: Market GRM: ANNUALIZED EXPENSES Actual Market Repairs $3,000 $3,000 Reserves $0 $1,800 Taxes - Real Estate $30,000 $30,000 Utilities $4,500 $4,500 Total Expenses $37,500 $39,300 Expenses Per RSF $9.30 $9.75 Expenses Per Unit $6,250 $6,550 Actual Income and Expense denotes projected income for the property with the existing structures.

7 Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly Bungalow 672 $685 $685 $2,150 $2, D Bungalow 672 $1,639 $1,639 $2,450 $2, Bungalow 672 $1,530 $1,530 $2,150 $2, Bungalow 672 $598 $598 $2,150 $2, Bungalow 672 $669 $669 $2,150 $2, Bungalow 672 $727 $727 $2,150 $2, ,032 $5,848 $13,200 UNIT MIX UNIT MIX SQUARE FEET D Bungalow D Bungalow UNIT MIX INCOME UNIT MIX MARKET INCOME D Bungalow D Bungalow

8 Average rent near 4708 Centinela Avenue, Los Angeles, CA [single bedroom] Rentometer 6/20/17, 2:44 PM 4708 Centinela Avenue, Los Angeles, CA Results as of 20 Jun Rent 2615 Your results are based on 25 single bedroom rentals in a 0.77 mile radius , AVERAGE $2,134 MEDIAN $2,150 $1,550 $2,770 80% $1,648 $2,550 60% Map data 2017 Google The research and data included in this report is aggregated from a variety of sources and many are third parties that are not affiliated with Rentometer, Inc. The information is believed to be accurate, but Rentometer, Inc. does not provide a warranty of any kind, either expressed or implied. Copyright 2017 Rentometer, Inc. Page 1 of 2

9 Average rent near 4708 Centinela Avenue, Los Angeles, CA [single bedroom] Rentometer 6/20/17, 2:44 PM Page 2 of 2

10 Proposed Development

11 Annual Projected Rent $557,400 GRM Completion for Valuation) 16 Estimated Completed Value $8,918,400 Estimated Value / SF $596 NOI $ CAP (@ Estimated Valuation) 4.06% CAP (@ Developer Cost) 5.57% Land Cost $2,750,000 Estimated ALL IN Build Cost / SF $3,750, Entrepreneurial Profit $2,418,400 ROI (@ Completion) 87.94%

12 Table 1 Proposed Rent Roll S. Centinela Unit # Unit SF Loft SF Balcony SF Balcony SF Total Unit SF $$/SF Bed Bath Features Proposed Rent $ Balcony $ $ $2, $ $2, $ Balcony $2, $ Balcony $2, $ Balcony $2, REC ROOM $ $ $ Balcony $2, $ $ $ Balcony $2, $ Balcony $2, $ Balcony $2, $ $3, $ Loft + Roof Deck $3, $ Loft + Roof Deck $3, $ Loft + Roof Deck $3, $ Loft + Roof Deck $3, $ Loft + Roof Deck $3, $ $3, Average $2.81 Total $46, TOTALS: $46,450.00

13 Comparable Rental Units Built From 2009 to Present Azure the Residence Courtleigh Dr, CA Floor Plan SF $$ Ave Rent $ / SF $2.64 Lindblade Lofts 4270 Lindblade Dr., Floor Plan SF $$ Ave Rent $ / SF $ $3.22 Landmark Chase W Washington Blvd, Floor Plan SF $$ Ave Rent $ / SF $ $2.82 Mar Vista Lofts 3992 Inglewood Blvd, Floor Plan SF $$ Ave Rent $ / SF $2.84 The Oliver W Washington Culver City, CA Floor Plan SF $$ Ave Rent $ / SF $ $2.99 Louise Apartments Louise Ave, Floor Plan SF $$ Ave Rent $ / SF $2.88

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20 Comparable Sales

21 Sales Comparables S Silicon Beach Development Sale Price $2,750,000 Units 6 Price/Unit $458,333 Price/SqFt $ Cap Rate 1.19% Year Built 1953 GRM # Units Unit Type Bungalow D Bungalow Bungalow Bungalow Bungalow Bungalow NOTES The first comp demonstrates a similar development opportunity. Comp two and three demonstrate the exit sales range that a finished project could potentially yield S Veteran Ave 3748 S Veteran Ave Los Angeles, CA In Escrow Sale Price $2,700,000 Units 0 Price/Unit Price/SqFt Cap Rate Year Built GRM N/A N/A N/A N/A N/A NOTES In escrow. 9,324 sf LAR3 lot. Vacant buildings. Approved plans for 15 units & 1 guest room. # Units Unit Type 2 Sale Date 8/4/2016 NOTES New Construction 4044 Redwood Ave 4044 Redwood Ave Sale Price $13,625,000 Units 0 Price/Unit N/A Price/SqFt $ Cap Rate 3.5% Year Built 2015 GRM 18.5 # Units Unit Type

22 Sales Comparables 3 Sale Date 8/9/2016 NOTES New construction. Loft style apartments S Lindblade Dr 4270 S Lindblade Dr Sale Price $11,400,000 Units 20 Price/Unit $570,000 Price/SqFt $ Cap Rate 3.98% Year Built 2015 GRM 16.3 # Units Unit Type 20 One Bedroom One Bath

23 Sales Comparables S Los Angeles, CA, $2,750, S Veteran Ave Los Angeles, CA, $2,700, Redwood Ave Los Angeles, CA, $13,625, S Lindblade Dr Los Angeles, CA, $11,400,000