Commercial Real Estate

Transcription

1 INVESTMENT OFFERING MEMORANDUM HART STREET VAN NUYS, CA PRESENTED BY: NICK ANANYAN Page

2 TABLE OF CONTENTS CONFIDENTIALITY & DISCLOSURE AGREEMENT 3 EXECUTIVE SUMMARY 4 INVESTMENT HIGHLIGHTS 5 BUILDING INFORMATION 6 PROPERTY MAP 7 AERIAL & GOOGLE MAP 8 BUSINESS GEOGRAPHICAL MAP 9 ASSESSOR MAP 10 RENTAL NUMBERS 11 FINANCIAL SUMMARY 12 FLOOR PLAN 14 ABOUT TITUS TREALTY, INC. 16 BIOGRAPHY 17 2 Page

3 CONFIDENTIALITY & DISCLOSURE AGREEMENT This Offering Memorandum contains select information pertaining to the business and affairs of 1059 ELM AVE, GLENDALE, CA This Memorandum was prepared by Broker based on information supplied by Owner and Broker. It contains selected information about the Property and the real estate market, but does not contain all the information necessary to evaluate the acquisition of the Property. The financial projections contained herein (or in any other Confidential Information) are for general reference only. The projections are based on assumptions relating to the general economy and local competition, among other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or legal analysis of such documents. 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 Titus Realty, Inc.. 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 or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. While the information contained in the Memorandum and any other Confidential Information is believed to be reliable, neither Broker nor Owner guarantees its accuracy or completeness. Due to the foregoing and since the Property will be sold on an As Is, Where Is basis, a prospective purchaser must make its own independent investigations, projections, and conclusions regarding the acquisition of the Property without reliance on this Memorandum or any other Confidential Information. Although additional Confidential Information which may include engineering, environmental or other reports may be provided to qualified parties as marketing proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers, environmental and other experts. 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 Titus Realty, Inc. 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. 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 Titus Realty, Inc. 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. Titus Realty, Inc has a policy of proactive broker cooperation with the investment brokerage community. A cooperating broker fee of the sales price shall be paid at closing to cooperating broker that procures and represents the buyer that acquires this property. Cooperation does not include brokers that represent themselves as Principals or broker s whose member of his immediate family is participating in the purchase of the property. No broker will be recognized on a prospect that has previously contacted or been contacted by the Seller or the Seller s representatives. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT TITUS REALTY, INC. AGENT FOR MORE DETAILS. By acknowledging your receipt of this Offering Memorandum from Titus Realty, Inc. you agree: 1)The Offering Memorandum and its contents are confidential; 3 Page

4 EXECUTIVE SUMMARY Property Address: Property Description: Purchase Price: HART STREET VAN NUYS, CA This is a 11-Unit 4 Story apartment building Project in Van Nuys $1,500,000 (includes current value of project) Total Living Square Footage: 12,600 Sq. Ft. Multiple Units Total Lot Square Footage: 7,000 Sq. Ft. APN: Zoning: R3-1 Year Built: Scheduled Gross Income: Under Construction Market 390, Net Operating Income: 280, Page

5 INVESTMENT HIGHLIGHTS This is a 11-Unit four story Apartment building over single level of subterranean parking garage in Van Nuys ready to be built. Seller has permits ready (RTI issued) to continue with the project of building up to 13,000 living square feet. Look at the financial summary to realize a projected gain once the project is completed and units are occupied by tenants. The mix of the units includes: 8 3Bed and 3-2Bed. Condominiums with an average square footage of 1150 per unit (see individual square footage per unit on the picture below. 5 Page

6 BUILDING INFORMATION 6 Page

7 PROPERTY MAP 7 Page

8 AERIAL MAP GOOGLE MAP 8 Page

9 BUSINESS GEOGRAPHICAL MAP 9 Page

10 ASSESSOR MAP 10 Page

11 Rental NUMBERS 11 Page

12 FINANCIAL SUMMARY Estimated Project Costs SF Cost / SF Land or initial acquisition cost 7000 $ $1,500,000 Total Acquisition Price $1,500,000 Construction Cost Hard Costs $ $1,683,000 Soft Costs $149,669 Parking Structure 3700 $ $370,000 Shoring / Grading $35,000 General Contractor (Construction x %) $335,650 Total Construction Cost $2,237,669 Soft Costs Calculations SF Cost/SF Plan Check and City Fees $1.50 $21,038 School District + Permit fees $5.25 $73,631 Architectural and Engineering ($ x unit) $5, $55, Total Soft Costs $149,669 Other Costs Project Length ( Months) 24 Construction Loan Total Payments $358,027 Subtotal Other Costs $358,027 Total Project Cost (TPC) $4,245, Page

13 FINANCIAL SUMMARY (continued) Stabilized Income Projected Annual Gross Income $2.50 $390,000 Vacancy (3%) $11,700 Effective Gross Income $378,300 Operating Expenses (25%) $97,500 Net Operating Income $280,800 Cap Rate on TPC 6.61% GRM on TPC Profit Calculation Future Project Value (Gross Rent x GRM) $6,240,000 Gross Profit $1,994,636 Total Return on Investment 46.98% 13 Page

14 FLOOR PLAN 14 Page

15 FLOOR PLAN 15 Page

16 ABOUT TITUS REALTY, INC. Titus Realty, Inc. is a commercial and residential real estate company serving Los Angeles Area since The firm has paved its way in the local market by building strong, successful relationships through local investors, business developers, and leading businesses. Titus Realty has brokered over $500 million in commercial and residential real estate transaction since Respected throughout the industry for our experience and knowledge of the niche residential, residential income and commercial markets, Titus Realty Inc. is dedicated to meeting and exceeding all of your real estate needs. Having brokerage, investment, management, development, consulting, and facilities maintenance services within the same company allows our clients to experience a true full-service real estate company embracing all of our clients needs. Most of the company s multi-year experienced agents were raised in Los Angeles and have long, deeply rooted relationships in the community an asset our clients find as highly beneficial. 16 Page

17 BIOGRAPHY Nick Ananyan Broker Nick Ananyan has a plethora of knowledge and experience in real estate. Throughout his career spanning over 15 years he closed in excess of $200 million worth of residential and commercial real estate transactions ranging. His combined knowledge of real estate, finance, and accounting allows him to deliver the best of many worlds to his clients addressing all financial and real estate concerns. He regularly conducts meetings and seminars, teachings sales and marketing skills to incoming real estate professionals early in their carriers. His clients range from multi-unit developers, business developers, hedge fund managers and individual investors who have been loyal for many years. His key to success is a combination of a great team he has develop over years, a team of realtors, escrow and title officers, lenders, as well as many professionals working hand in hand with Titus Realty, a company known for integrity, professionalism, loyalty and efficiency in handing any transactions. 17 Page