511 La Cadena Way LA HABRA, CA OFFERING MEMORANDUM

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Peregrine Hunter
6 years ago
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1 OFFERING MEMORANDUM

2 INVESTMENT OVERVIEW Investment Highlights Strong Unit Mix of 1 & 2 Bedrooms, Good Curb Appeal, and Nicely Landscaped Units Are Separately Metered for Electric & Gas 4 of 8 Units Have Recently Been Completely Renovated Some Units Contain a 2 Car Garage Brand New Paint, Windows, and Light Fixtures On Exterior Strong La Habra Rental Location Marcus & Millichap is pleased to present this two story eight unit investment opportunity located in the City of La Habra. This property has a great unit mix of one and two bedroom units. Each unit is individually metered for electricity & Gas. Four out of the eight units have recently been completely renovated, with upgrades including new flooring, paint, and light fixtures. The building has received some recent upgrades as well, such as new exterior paint. The property is nicely landscaped with grass, plants, and trees. The common area contains on-site laundry machines and ample covered parking for tenants. The building is in a strong location right off of Beach Blvd, placing tenants in close proximity to major retail, entertainment, and employment opportunities. It's minutes from various golf courses including Westridge & Los Coytes. 511 La Cadena Way is situated in between Whittier Christian High School & La Habra High School along with many other elementary & middle schools. The property also is less than a mile from many recreational parks and 10 minutes from the I-5 Freeway.

3 FINANCIAL OVERVIEW Location 511 La Cadena Way La Habra, CA Price $1,950,000 Down Payment 40% / $780,000 Number of Units 8 Price/Unit $243,750 Rentable Square Feet 4,820 Price/SF $ CAP Rate - Current 4.14% CAP Rate- Pro Forma 4.92% GRM - Current GRM- Pro Forma Year Built 1963 Lot Size.21 Acres Type of Ownership Fee Simple PRICING AND FINANCIAL ANALYSIS Annualized Operating Data Income Current Pro Forma Gross Potential Rent $126,540 $142,200 Other Income $1,800 $1,800 Gross Potential Income $128,340 $144,000 Less: Vacancy/Deductions (GPR) 3.0% / $3, % / $4,266 Effective Gross Income $124,544 $139,734 Less: Expenses $43,778 $43,778 Net Operating Income $80,766 $95,956 Net Cash Flow Before Debt Service $80,766 $95,956 Debt Service $65,021 $65,021 Debt Coverage Ratio Net Cash Flow After Debt Service 2.0% / $15, % / $30,935 Principal Reduction $21,514 $21,514 Total Return 4.8% / $37, % / $52,448 Financing FIRST TRUST DEED Loan Amount $1,170,000 Loan Type Proposed New Interest Rate 3.75% Amortization 30 Years Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative. Expenses Real Estate Taxes $20,722 $20,722 Insurance $2,335 $2,335 Electricity $1,440 $1,440 Water & Sewer $2,550 $2,550 Gas $1,350 $1,350 Trash $3,168 $3,168 Pest Control $720 $720 Maint. & Repairs $6,000 $6,000 Gardener $1,200 $1,200 Special Assessments $1,893 $1,893 Reserves $2,400 $2,400 Total Expenses $43,778 $43,778 Expenses/unit $5,472 $5,472 Expenses/SF $9.08 $9.08 % of EGI 35.15% 31.33% Scheduled Income No. of Units Unit Type Approx. Square Feet Current Rents Rent/ SF Monthly Income Pro Forma Rents Rent/ SF Monthly Income 2 1 Bdr 1 Bath 560 $1,075 - $1,150 $1.99 $2,225 $1,425 $2.54 $2, Bdr 1 Bath 560 $1,375 - $1,395 $2.47 $2,770 $1,425 $2.54 $2, Bdr 1 Bath 560 $1,425 $2.54 $2,850 $1,425 $2.54 $2, Bdr 1 Bath 730 $1,350 $1.85 $2,700 $1,650 $2.26 $3,300 8 Total/Wtd. Avg. 4,820 $10,545 $11,850

4 PRICING AND FINANCIAL ANALYSIS INCOME & EXPENSES Total Number of Units: 8 Total Rentable Area: 4,820 SF Income Current Per Unit Pro Forma Per Unit GROSS POTENTIAL RENT $126,540 $15,818 $142,200 $17,775 Other Income Laundry Income $1,800 $225 $1,800 $225 Total Other Income $1,800 $225 $1,800 $225 GROSS POTENTIAL INCOME $128,340 $16,043 $144,000 $18,000 Vacancy/Collection Allowance (GPR) 3.0% / $3,796 $ % / $4,266 $533 EFFECTIVE GROSS INCOME $124,544 $15,568 $139,734 $17,467 Expenses Real Estate Taxes $20,722 $2,590 $20,722 $2,590 Insurance $2,335 $292 $2,335 $292 Electricity $1,440 $180 $1,440 $180 Water & Sewer $2,550 $319 $2,550 $319 Gas $1,350 $169 $1,350 $169 Trash $3,168 $396 $3,168 $396 Pest Control $720 $90 $720 $90 Maint. & Repairs $6,000 $750 $6,000 $750 Gardener $1,200 $150 $1,200 $150 Special Assessments $1,893 $237 $1,893 $237 Reserves $2,400 $300 $2,400 $300 TOTAL EXPENSES $43,778 $5,472 $43,778 $5,472 Expenses per SF $9.08 $9.08 % of EGI 35.2% 31.3% NET OPERATING INCOME $80,766 $10,096 $95,956 $11,995

5 PROPERTY SUMMARY The Offering Property Address 511 La Cadena Way La Habra, CA Assessor's Parcel Number Zoning Multi-Family Site Description Number of Units 8 Year Built 1963 Rentable Square Feet 4,820 Lot Size.21 Acres Type of Ownership Fee Simple Density low Parking Garage Parking Ratio 1:1 Landscaping Flat Topography Grass, Trees, & Plants Utilities Water Phone Electric Gas Owner Tenant Tenant Tenant Construction Foundation Framing Exterior Parking Surface Roof Concrete Wood Stucco Asphalt Pitched

Fixtures Unit Amenities Half of the Units Have Been Completely Remodeled

6 AMENITIES Common Area Amenities Laundry Room On-Site Beautifully Landscaped Front Yard Large Parking Area For Guests New Exterioir Paint, Windows, and Light Fixtures Unit Amenities Half of the Units Have Been Completely Remodeled Individually Metered For Gas & Electric Newly Upgraded Interioir In-Window Air Conditioning Units

7 PROPERTY PHOTOS

8 AREA MAPS Local Map Regional Map

9 AERIAL PHOTO

1013 N. Ross St SANTA ANA, CA OFFERING MEMORANDUM

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