OFFERING MEMORANDUM CHANNEL ROAD PACIFIC PALISADES, CA UNITS + RETAIL STEPS TO THE BEACH

Transcription

1 OFFERING MEMORANDUM 10 UNITS + RETAIL STEPS TO THE BEACH

2 MARKETING PACKAGE OVERVIEW LOCATION OVERVIEW Property Location PRESENTED BY Kenny Stevens BRE# PROPERTY SUMMARY Property Highlights Property Details Photography FINANCIALS Financial Overview Rent Roll COMPARABLES Sales Comps Rent Comps South Beverly Drive, First Floor, Beverly Hills, CA 90212

3 LOCATION PACIFIC PALISADES, CA PACIFIC PALISADES-SANTA MONICA, CALIFORNIA The Pacific Palisades is an affluent residential neighborhood tucked between the Santa Monica Mountains and the Pacific Ocean. Temescal Gateway Park offers hiking trails with sweeping coastline views, and the sandy Will Rogers State Beach provides access to a 22-mile beachfront bike path. Landmarks include the Getty Villa museum., Riviera Country Club, and the Polo grounds of Will Rogers State Park. The Palisades stretches nearly ten miles along Sunset Blvd from Allenford Dr to the east, to Pacific Coast Highway to the west and features a number of different neighborhoods, each with its own distinct personality. The Palisades offers an active outdoor lifestyle while still maintaining an easy drive to everything the City of Los Angles has to offer. The neighborhood has a walkable commercial core with a small-town feel in the heart of a world-class city. The city of Santa Monica offers a walkable downtown, a blossoming public transportation system, and several notable tourist destinations. Known for its sunshine and beaches, Santa Monica prides itself as a national model for progressive issues, including social services, quality of life for local residents, and environmental leadership. This urban village has spectacular views of its vast white sand beaches from Palisades Park, exceptional shopping on Third Street Promenade, main Street and Montana Avenue, and the region s most renowned restaurant scene. Santa Monica stretches for about two miles along the coast before joining up with Venice Beach. Major employers in Santa Monica include UCLA Hospital, St. John s Health Center, RAND Corporation, Universal Music Group, Activision and Santa Monica College. Silicon Beach is the Westside region of the Los Angeles metropolitan area that is home to over 500 tech startup companies. Major technology companies have opened offices in the region including Google, Yahoo!, YouTube, BuzzFeed, Facebook, AOL, Electronic Arts, EdgeCast Networks, and MySpace. The region is considered the second- or third-largest tech hub in the world, according to various reports. This has had major impacts on the type and availability of office space and on home prices in Playa Vista, Playa Del Rey, Westchester, Santa Monica, and Venice, as these areas have become more desirable due to this influx. The Expo Line is a light-rail line that runs between Downtown Los Angeles and Santa Monica. The line is named Expo after Exposition Boulevard, which it runs alongside for most of its route. It is one of the six lines in the Metro Rail system, and is operated by the Los Angeles County Metropolitan Transportation Authority (Metro).

4 LOCATION OVERVIEW MALIBU Riviera Country Club Restaurants Giorgi Baldi Patrick s Roadhouse Tallulas Café Delfini Shore Bar Santa Monica Canyon SANTA MONICA Third Street Promenade Ocean Ave Tower 8 Water Grill BP Oysterette BOA The Penthouse Fig Santa Monica Pier Santa Monica College

5 PROPERTY SUMMARY PROPERTY DETAILS PROPERTY DESCRIPTION Channel Road, two contiguous lots, includes (10) residential units and (1) retail space on more than 7,000 square feet of land zoned LAC2. Property is 50 yards from the sand, with spectacular ocean views. The retail unit benefits from high visibility and all tenants enjoy easy access to the beach, bike path and numerous restaurants in walking distance. The property is currently leased for $27,000/mo. by Soba Living of Malibu through Tenant pays all utilities including water, gas, electricity, and trash. In addition, tenant is responsible for maintenance and repairs. The units are currently being operated as short term rentals and the entire property can be delivered vacant for the new owner. PROPERTY DETAILS Units 10 + Retail Major Intersection Chautauqua Blvd. and PCH Market Palisades/Santa Monica APN / Zoning Type LAC2 Lot Size SF Approx. 7,056 square feet. This is a significant opportunity to add value in an A+ location.

6 PROPERTY SUMMARY PROPERTY HIGHLIGHTS 11 UNITS IN PACIFIC PALISADES Prime location, 50 yards from the sand! Most units have ocean views Property is master leased for $27,000/mo through month/2019 Offering includes three structures with (10) residential units and (1) retail Currently being operated as short term rentals Minutes to Santa Monica and Malibu Two contiguous parcels, Los Angeles C2 zoning

7 PROPERTY SUMMARY PROPERTY PHOTOS

8 PROPERTY SUMMARY PROPERTY PHOTOS

9 PROPERTY SUMMARY PROPERTY PHOTOS

10 FINANCIALS FINANCIAL OVERVIEW - $5,200,000 INVESTMENT SUMMARY SCHEDULED INCOME Purchase Price: $5,200,000 UNIT MIX CURRENT PRO FORMA Down Payment: $5,200, % Units Beds Baths Average Monthly Rent Monthly Year Built: $5,500 $5,500 Units: $3,750 $3,750 Approx. Lot Size: 7,056 Sq. Ft $3,000 $6,000 Approx. Bldg. NRSF: 3,927 Sq. Ft. 5 Studio 2,500-$2,700 $13,050 Cost per NRSF: $1,324 1 Bachelor $1,750 $1,750 Cost per Unit: $472,727 1 Retail $1,000 $1,000 Scheduled Rent: $0 $31,050 CURRENT PRO FORMA Storage Income: $0 $0 GRM: Laundry Income: $0 $200 CAP: 4.98% 4.69% Monthly Gross Income: $27,000 $31,250 Annual Gross Income: $324,000 $375,000 ANNUAL INCOME ANNUAL EXPENSES CURRENT PRO FORMA ITEM AMOUNT Scheduled Gross Income: $324,000 $375,000 Taxes: (based on new purchase price) 1.25% $65,000 Vacancy Allowance: $0 0.00% * $11, % Insurance: $0 Gross Operating Income: $324,000 $363,750 Utilities: $0 Less Expenses: $65,000 20% * $104,585 30% Repairs & Maintenance: $0 Net Operating Income: $259,000 $244,033 Professional Mgmt: $0 Less Loan Payment $0 $0 Onsite Mgmt: $0 Pre-Tax Cash Flow: $259, % ** $244, % Misc: $0 Plus Principal Reduction: $0 $0 Total Return Before Taxes: $259, % ** $244, % Utilities Paid by Tenant: Gas, Electricity, Water, Trash * As a percent of the scheduled gross income. ** As a percent of the down payment Total Expenses: Expense / NRSF: Expense / Unit: $65,000 $16.55 $5,909

11 FINANCIALS RENT ROLL 107-A RETAIL $1,000 OCEAN VIEW $5,550 OCEAN VIEW 109-A $3,750 OCEAN VIEW 109-B BACHELOR $1, A STUDIO $2, B STUDIO $2, C $3, D Studio $2,750 OCEAN VIEW 117-E STUDIO $2, F STUDIO $2,750 OCEAN VIEW 117-G $3,000 OCEAN VIEW STORAGE INCOME: LAUNDRY INCOME: MONTHLY TOTAL: ANNUAL TOTAL: $0 $0 $0 $200 $0 $31,250 $0 $375,000

12 COMPARABLES SALES COMPS Property Photo Address Sale Price COE # of Units Building SF Price/ Unit Year Built Unit Mix Comments Channel Rd Pacific Palisades, CA $5,200, ,056 $472, (1) 3+2 (1) 2+1 (2) 1+1 (5) Studio (1) Bachelor (1) Retail Subject Property th Street $4,255,000 5/30/17 7 9,282 $607, (7) parking spaces th Street $2,800,000 6/8/18 6 4,632 $591, (4) 1+1 (2) Studio Fully Vacant, major deferred maintenance rd Ave $3,770,000 6/12/17 7 5,654 $538, (1) 2+1 (6) parking spaces Ocean Ave $8,000,000 1/27/ ,876 $500, (2) 1+1 (14) Studio Inferior location. Similar age. 24 parking spaces. 800 sq ft units Idaho Ave $2,500,000 11/8/17 6 3,360 $416, (6) Studio 4 parking spaces. Inferior unit mix. Similar age. Inferior location.

13 COMPARABLES SALES COMPS Channel Rd Sales Comps th St th St rd St Ocean Ave Idaho Ave

14 COMPARABLES RENTAL COMPS Property Photo Address Rent Unit Type Comments $5, $3, Channel Rd Pacific Palisades, CA $3, $2,000-$2,500 Studio $1,7500 Bachelor $1,000 Retail Projected rent for subject property th Street $2, th Street $2, th Street $2,500 Studio th Street $3, Idaho Ave $2,575 Studio

15 COMPARABLES RENTAL COMPS Channel Rd Rental Comps th St th St th St th St Idaho Ave

16 PRESENTED BY Kenny Stevens BRE# BRE# This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.