825 Crocker St. Los Angeles, CA OFFERING MEMORANDUM. Anthony Welborn BRE: Reyn Hornwood BRE: Erik Sjolund BRE:

Transcription

1 825 Crocker St Los Angeles, CA OFFERING MEMORANDUM Anthony Welborn BRE: Reyn Hornwood BRE: Erik Sjolund BRE: N Canon Dr., Penthouse, Beverly Hills, CA (310)

2 Table of Contents Exclusively Presented By Reyn Hornwood BEACH&URBAN Investment Real Estate BRE Cell: (310) Erik Sjolund BEACH&URBAN Investment Real Estate BRE Cell: (310) Anthony Welborn BEACH&URBAN Investment Real Estate BRE Cell: (323) About Us 3 Property Information 4 Property Overview 5 Surrounding Map Property Photos Market Research 10 Sales Comps Rent Comps Financial Review 12 2

3 About Us Beach & Urban Commercial is a leading commercial real estate team based in Beverly Hills, California. Founded by partners Erik Sjolund & Reyn Hornwood. Although the B&U team works on commercial properties of all type (Mixed-Use, Industrial, NNN), our team's main expertise is the acquisition, disposition and 1031 exchange of apartment assets throughout Southern California's Coastal and Metropolitan hubs. The Beach & Urban Team's culture has been core to its success. Founders, Mr. Sjolund & Mr. Hornwood were both born and raised in Southern California. With their "Get it done the right way, but as fast as possible" and "Go Win!" attitudes, they have been trusted by hundreds of private client investors to value, sell and exchange investment properties throughout the region. Our team has been able to establish a reputation of working not just harder, but smarter. We believe in integrity and transparency with our clients, we do not believe in telling investors what they want to hear. By looking at investments in an honest & conservative fashion, and providing this full transparency to our clients, we have a proven track record of creating win - win investment scenarios while maintaining our industry leading integrity. Beach & Urban Commercial is a top quality firm, with top quality personal service. Our team is dedicated to protecting our clients with their most valuable tangible assets. 3

4 Description Presenting 825 Crocker Street, A Single Resident Occupant (SRO) Multi-Housing Commercial Asset. 33 SRO Bachelor Style Units with 6 shared bathrooms throughout the property. Located in the gentrifying Fashion District of Los Angeles, California. Sweeping Downtown city views from roof. All electrical has been completely overhauled. Roof has been completely redone. Huge upside in repositioning asset. Zoned M2, there is a possibility of commercial use (buyer to verify with city). Offered for the first time on the market in over 30 years, this opportunity will not last long! Property Highlights Gentrifying Los Angeles Area in Fashion District Retrofitted to city standards Three Stories w/ completed retrofit Pricing & Value Metrics: Property Information PRICE $3,000,000 $/SQFT $ Current Cap 4.28 % Projected Cap 6.08 % Current NOI* $128,483 *Current NOI includes new tax rate ADDITIONAL PROPERTY INFORMATION Assessors Parcel Number (APN) Year Built 1908 Total Rentable Square Footage 13,371 Lot Sizing AC. 6,697 Sqft Zoning M2 Occupancy 100% 4

5 Property Overview BEACH&URBAN 5

6 Map of Surroundings 6

7 Arial Map of Surroundings 7

8 Arial View 8

9 Arial View 8

10 Property Photo s 8

11 Property Photo s 9

12 Market Research BEACH&URBAN 10

13 Sales Comps 1331 Albany St Los Angeles, (20 Units) 511 S Union Ave Los Angeles, CA (27 Units) 526 S Union Ave, Los Angeles (30 Units) 2108 Maple Ave, Los Angeles (26 Units) $/Unit: $132,000 $/Sqft: $291 Cap Rate: 4.9% GRM: 12.1 $/Unit: $106,296 $/Sqft: $197 Cap Rate: 5.03% GRM: 11.8 $/Unit: $103,333 $/Sqft: $239 Cap Rate: 4.5% GRM: 11.5 $/Unit: $124,615 $/Sqft: $200 Cap Rate: 6% GRM: 10.6 Year Built: 1924 Lot Size: 9,088 Sold Date: 08/16/2016 Year Built: 1923 Lot Size: 14,502 Sold Date: 01/03/2017 Year Built: 1922 Lot Size: 12,960 Sold Date: 08/16/2016 Year Built: 1911 Lot Size: 16,152 Sold Date: 07/29/2016 Unit Mix: (20) Studio Unit Mix: (1) 1 Bed 1 Bath (26) Studio Unit Mix: (30) Studio Unit Mix: (13) Studio (12) 1 Bed 1 Bath (1) 2 Bed 1 Bath 11

14 825 Crocker St, Los Angeles CA Suggested List Price: $3,000,000 Down Payment: 38.0% $1,150,000 Number of units: 33 Cost per Unit: $90,909 Current GRM: Market GRM: Current CAP: 4.29% Market CAP: 6.08% Year Built / Age: 1908 Proposed Financing Approx. Lot Size: 6,697 Zoned: M2 First Loan Amount: $1,850,000 New 3 Approx. Gross RSF: 13,371 Terms: 4.150% Cost per Net RSF: $ Payment $8,993 DCR: 1.19 Annualized Operating Data Current Rents Market Rents Scheduled Gross Income: $ 216,000 $ 277,200 Vacancy Rate Reserve: $ 6,480 3% 1 $ 13,860 5% 1 Gross Operating Income: $ 209,520 $ 263,340 Expenses: $ 80,874 37% 1 $ 80,874 29% 1 Net Operating Income: $ 128,646 $ 182,466 Loan Payments: $ 107,915 $ 107,915 Pre Tax Cash Flows: $ 20, % 2 $ 74, % 2 Principal Reduction: $ 31,739 $ 31,739 Total Return Before Taxes: $ 52, % 2 $ 106, % 2 1 As a percent of Scheduled Gross Income 2 As a percent of Down Payment Scheduled Income Annualized Expenses: Current Income Market Income Estimated # of Bdrms/ Notes Monthly Total Monthly Monthly Total New Taxes (New Estimated) $ 37,500 Units Baths Rent/Average Income Rent/Unit Income Maintenance (6%) $ 12,960 Insurance ($.45/SF) $ 3, SRO/Bach $ 545 $ 18,000 $ 700 $ 23,100 Utilities - Per Unit: $ 800 $ 26,400 Trash $ 1,000 6 Shared Bath Financial Review. Total Scheduled Rent: $18,000 $23,100 Laundry $0 $0 Garages $0 $0 Total Expenses: $80,874 Monthly Scheduled Gross Income: $18,000 $23,100 Expenses as %/SGI 37.44% Annualized Scheduled Gross Income: $216,000 $277,200 Per Net Sq. Ft: $12.08 Utilities Paid by Tenant: Gas & Electric Per Unit: $2,451 Presented by Beach & Urban Commercial 12

15 Disclaimer The information contained in this Broker Opinion of Value ( BOV ) is proprietary and strictly confidential; it is intended to be reviewed only by the party receiving it from Broker and should not be made available to anyone else without the written consent of Broker. By retention or use of this BOV, you agree that its contents are confidential, that you will hold it in the strictest confidence, and that you will not disclose any of its contents contrary to these terms. This BOV has been prepared to provide summary, unverified information to establish a preliminary estimate of value for the subject property ( Property ). The information in this BOV has been obtained from sources Broker believes to be reliable; however, Broker has not conducted sufficient investigation to make any warranty or representation whatsoever including but not limited to the accuracy or completeness of the information, veracity or accuracy of the information, condition of the Property or its compliance or lack of compliance with applicable governmental requirements, developability, suitability or financial performance of the Property, income or expenses for the Property, the size and square footage of the Property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State or Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant or any tenant s plans or intentions to continue occupancy of the Property. The BOV has selected information relating to the Property and does not purport to be an all - inclusive representation regarding the Property or to contain all or part of the information which prospective investors may require to evaluate the purchase of the Property. All information is based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of Broker, therefore, all information is subject to material variation. The information contained herein is not a substitute for a thorough due diligence investigation. Interested parties are expected to review all information of whatever nature independently and not rely on the contents of this BOV in any manner. The Property owner ( Owner ) expressly reserves the right, at its sole discretion, to reject any or all offers to purchase the Property, and/or to terminate discussions at any time with or without notice. The Owner shall have no legal commitment or obligation unless and until written agreement(s) have been fully executed, delivered and approved by the Owner and any conditions to the Owner s obligations therein have been satisfied or waived. Exclusively Presented by: Reyn Hornwood BRE (310) RH@BeachandUrban.com Erik Sjolund BRE (310) ES@BeachandUrban.com Anthony Welborn BRE (323) AW@BeachandUrban.com 13