OFFERING MEMORANDUM MOORPARK STREET STUDIO CITY, CALIFORNIA

Transcription

1 OFFERING MEMORANDUM MOORPARK STREET STUDIO CITY, CALIFORNIA 1

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3 10851 MOORPARK STREET STUDIO CITY, CALIFORNIA EXCLUSIVELY LISTED BY BRANDON DICKER Associate Multifamily Direct Mobile License No DANIEL WITHERS Senior Vice President Multifamily Direct Mobile License No I II III IV PROPERTY OVERVIEW AREA OVERVIEW COMPARABLES FINANCIAL OVERVIEW

4 4 I SECTION PROPERTY OVERVIEW OPPORTUNITY Moorpark Street offers investors with a great opportunity to take advantage of a well maintained multifamily investment property in Studio City. Built in 1964, the building offers tenants with secured door entry, wall unit ACs, on-site laundry, covered parking, and lush courtyard. The building, which is located between Lankershim Boulevard and Vineland Avenue, is made up of ten units including one bachelor unit, one single unit, seven onebedroom units, and one two bedroom unit. DESCRIPTION With direct access to the 101, 134, and 170 freeways, residents are a quick drive from shopping, dining, and entertainment that is offered in North Hollywood, Studio City, and Toluca Lake Moorpark Street is truly a unique property in one of the most exciting rental markets in Los Angeles.

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6 II SECTION AREA OVERVIEW MAJOR EMPLOYERS LOS ANGELES MSA As the second largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California s original 27 counties, is one of the nation s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California s population. The area continues to grow, especially given the vigorous residential development in downtown LA. Famously known for a heavy entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United States. The Los Angeles-Orange County metro area alone has an enormous economy with an estimated $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas. ECONOMY The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the Movie Capital of the United States due to the region s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism. 6 6

7 DEMOGRAPHICS POPULATION 1-MILE 3-MILE 5-MILE 2022 Projection 35, , , Estimate 33, , , Census 31, , ,671 Growth % 4.60% 3.95% HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2022 Projection 19,044 98, , Estimate 18,006 93, , Census 16,717 87, ,292 Growth % 5.04% 4.32% INCOME 1-MILE 3-MILE 5-MILE 2017 Average Household Income 2017 Median Household Income $91,741 $101,647 $94,147 $66,984 $65,594 $59,492 7

8 STUDIO CITY Studio City is located in the city of Los Angeles, California, in the San Fernando Valley. Just over the hill from the Hollywood bustle, Studio City is a quaint neighborhood with tree-lined residential streets and trendy dining. Lively Ventura Boulevard offers several classic sushi houses, plus small-plates spots and stylish gastropubs. Locals hit Wilacre Park for woodsy hiking trails with panoramic Valley views. The CBS Studio Center dates back to silent film era and gives the neighborhood its name. Studio City is known for its thriving local community with a small town feel. Favorite annual Studio City events are the Fourth of July Fireworks Festival, held on the CBS Studio Center lot and put on by the Studio City Chamber of Commerce and the Studio, the weekly Farmers Market, one of the premier markets in Los Angeles, the Winter Family Festival, and the Luminaria Festival. DISTANCE TO Universal Studios > 1.4 Miles Warner Bros. Studios > 2.1 Miles Hollywood Bowl > 4 Miles Hollywood Sign > 4.5 Miles 8

9 #1 MOST POPULATED COUNTY IN THE U.S. (L.A. COUNTY) 63% OF SAN FERNANDO VALLEY WORKERS ARE IN WHITE-COLLAR POSITIONS 37.6 SAN FERNANDO VALLEY The San Fernando Valley features a strong and well-diversified economy. The Valley is home to numerous large employers, including some 50,000 businesses employing over 700,000 workers, the most wellknown of which are involved in motion pictures, recording, and television production and the medical and biotech industries. Among the top entertainment companies in the San Fernando Valley are Disney, Warner Brothers, NBC, and DreamWorks. Other important segments of the local economy include financial and health services as well as aerospace, biotech, and high-tech manufacturing, with BlueShield, Amgen and Kaiser to name a few. MEDIAN AGE IN THE VALLEY 1.7M 332.6k $69.1k San Fernando Valley s population is forecast to grow 4.2% over the next 5 years 31% of residents 25 years and older hold a bachelor s degree or higher, compared to 29% nationally The Valley s median household income is projected to reach $69,123 by 2022, up 10.4% from

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11 11 RENT COMPARABLES ADDRESS Unit Type Rent MOORPARK STREET Bachelor $ MOORPARK STREET Single $ CAHUENGA BLVD Studio $1,225 ADDRESS Unit Type Rent MOORPARK STREET 1+1 $1, ENSIGN STREET 1+1 $1, ENSIGN AVENUE 1+1 $1, BLOOMFIELD STREET 1+1 $1, WOODBRIDGE STREET 1+1 $2,025 - $2, MOORPARK STREET 1+1 $1,550 ADDRESS Unit Type Rent MOORPARK STREET 2+1 $1, MOORPARK STREET 2+1 $1,900

12 12 SALES COMPARABLES Address Moorpark Street Studio City, CA Magnolia Blvd Valley Village Fruitland Dr Studio City Moorpark St Studio City 4824 Satsuma Ave North Hollywood Riverside Dr Toluca Lake Otsego St North Hollywood 4909 Coldwater Canyon Ave Sherman Oaks Camarillo St North Hollywood Fruitland Dr Studio City, CA 4173 Fair Ave Studio City, CA Averages

13 13 Yr Built Sq Ft Price Per Unit Per Foot Cap Rate GRM Units Bachelor Studio Mix #-1Bd #-2Bd #3-Bd ,779 $2,450,000 $245,000 $ % ,190 $4,200,000 $350,000 $ ,834 $3,118,000 $346,444 $ % ,600 $2,300,000 $328,571 $ % ,336 $3,160,000 $316,000 $ ,309 $11,900,000 $305,128 $ % ,540 $1,800,000 $300,000 $ ,412 $1,550,000 $258,333 $ % ,700 $2,000,000 $250,000 $ % ,091 $1,250,000 $250,000 $ % ,371 $1,782,000 $356,400 $ % $3,132,273 $299,398 $ %

14 IV SECTION FINANCIAL OVERVIEW INVESTMENT SUMMARY Offering Price: $2,450,000 Number of Units: 10 Property: Moorpark Street Year Built: 1964 Studio City, CA APN: Price Per Unit: $245,000 Gross Sq. Ft.: 6,779 Price Per S.F.: $ Average S.F. Per Unit: 678 Cap (current / market): 3.13% / 5.40% Lot Size 0.21 GRM (current / market): / UNIT MIX Total Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent 1 Single 10% $744 $744 $1,250 $1, % $1,177 $8,236 $1,700 $11, % $1,475 $1,475 $1,900 $1,900 1 Bachelor 10% $763 $763 $1,150 $1,150 Scheduled Monthly Rent: $11,218 $16,200 Scheduled Yearly Rent: $134,615 $194,400 14

15 15 ANNUALIZED OPERATING DATA Current Market Scheduled Gross Income: $134,615 $194,400 44% Upside Less Vacancy Reserve: 3.0% $4, % $5,832 * Laundry Income: $900 $900 Gross Operating Income: $131,476 $189,468 Expenses: 40.8% $54, % $57,220 * Net Operating Income: $76,576 $132,248 * As a percent of Scheduled Gross Income PRO FORMA ANNUAL OPERATING EXPENSES Current Per Unit % of SGI Taxes 1.193% x Sale Price $29,229 $2, % Off-Site Management 4.0% x GOI $5,259 $ % Insurance $0.33 x GSF $2,232 $ % Trash / Pest Control $250 x Units $2,500 $ % Repairs & Maintenance $600 x Units $6,000 $ % Utilities $600 x Units $6,000 $ % Gardener $168 x Units $1,680 $ % Reserves $200 x Units $2,000 $ % Total Expenses $54,901 $5, % Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins: $33,961 $3, % Total Expense without Taxes $25,671 $2, %

16 16 RENT ROLL Unit Mix Rent Square Feet Market Rent $1, $1, $ $1,700 3 Bachelor $ $1, $1, $1, $1, $1, $1, $1, $1, $2,700 8 Single $ $1, $ $1, $1, $1,700 Totals $11,218 $17,000 Averages $1,122 $1,700 **Current Rents will be effective as of January 2018

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18 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Moorpark Street, Studio City, CA ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

19 DANIEL WITHERS Senior Vice President Multifamily Direct Mobile License No BRANDON DICKER Associate Multifamily Direct Mobile License No MOORPARK STREET STUDIO CITY, CALIFORNIA 19