Summit Apartments OFFERING MEMORANDUM PASADENA, CA OFFERING MEMORANDUM PRESENTED BY:

Transcription

1 OFFERING MEMORANDUM Summit Apartments PASADENA, CA OFFERING MEMORANDUM KW COMMERCIAL 700 S. Flower Street, Suite 2900 Los Angeles, CA PRESENTED BY: STEPHEN WATSON Managing Director - KW Commercial DTLA swatson@total-realtygroup.com BRE # MICHAEL FUKUSHIMA Director - KW Commercial DLTA mfukushima@total-realtygroup.com BRE # FRANK GRENNIE Partner Sales Mgr fgrennie@total-realtygroup.com BRE #

2 OFFERING MEMORANDUM Confidentiality & Disclaimer PASADENA, CA All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Downtown LA in compliance with all applicable fair housing and equal opportunity laws. PRESENTED BY: KW COMMERCIAL 700 S. Flower Street, Suite 2900 Los Angeles, CA STEPHEN WATSON Managing Director - KW Commercial DTLA swatson@total-realtygroup.com BRE # MICHAEL FUKUSHIMA Director - KW Commercial DLTA mfukushima@total-realtygroup.com BRE # FRANK GRENNIE Partner Sales Mgr fgrennie@total-realtygroup.com BRE # We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. 2

3 OFFERING MEMORANDUM SUMMIT PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES PROPERTY INFORMATION 1 PROPERTY INFORMATION SUMMIT APARTMENTS PROPERTY INFORMATION 1 EXECUTIVE SUMMARY PROPERTY DESCRIPTION PROPERTY DETAILS COMPLETE HIGHLIGHTS ADDITIONAL PHOTOS 3

4 Executive Summary 1 PROPERTY INFORMATION SALE PRICE: $2,500,000 UNITS: 12 PRICE PER UNIT: $208,333 CAP RATE: 3.73% GRM: NOI: $93,332 LOT SIZE: 0.45 Acres BUILDING SIZE: 6,018 SF YEAR BUILT: 1928 ZONING: PSR1 PROPERTY OVERVIEW 12 Units Minutes from Old Pasadena and California Institute of Technology! This amazing 1920's twelve unit 6,018 square foot Craftsman style beauty sits on a 19,802 square foot lot in non rent control Pasadena! Property consists of 5 buildings that are each separately metered for gas and electric, individual water heater per unit, and ten garage parking paces plus 6 parking slots. This property also has an excelent unit mix consisting of 4 studios, 6 one bed/ one bath, 2 two bed/ one bath. Good location situated within minutes of Old town Pasadena, Cal Tech, and a short drive to booming Downtown Los Angeles. DO NOT DISTURB TENANTS, DRIVE BY ONLY THOSE WHO DO NOT COMPLY WILL BE DISQUALIFIED FROM SALE!! CROSS STREETS: E Hammond St 4

5 1 PROPERTY INFORMATION Property Description LOCATION OVERVIEW The property is located in Northwest Central Pasadena in the North Marengo neighborhood in Pasadena, California. It is bordered by The Banbury Oaks neighborhood to the West, Garfield Heights neighborhood to the East, Villa Park neighborhood to the South, and Raymond neighborhood to the North. 5

6 Property Details 1 PROPERTY INFORMATION PROPERTY NAME: Summit Apartments STREET ADDRESS: 1145 N Summit Ave CITY, STATE, ZIP: Pasadena, CA APN: LOT SIZE: 0.45 AC BUILDING SIZE: 6,018 SF BUILDING CLASS: C ZONING: PSR1 PARKING SPACES: 18 YEAR BUILT: 1928 NUMBER OF UNITS:

7 Complete Highlights 1 PROPERTY INFORMATION PROPERTY HIGHLIGHTS - Non rent control - Ample on Site parking - Easy access to freeway(s) - Quiet tree lined street - +/-30% upside in rents - Great unit mix - Very large lot - Separately metered for gas and electricity - Additional 2,088 Sq. Ft. of building in Garage Space - Washer and Dryer Hookups 7

8 Additional Photos 1 PROPERTY INFORMATION 8

9 OFFERING MEMORANDUM SUMMIT PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES LOCATION INFORMATION 2 LOCATION INFORMATION SUMMIT APARTMENTS LOCATION INFORMATION 2 REGIONAL MAP LOCATION MAPS AERIAL MAP

10 Regional Map 2 LOCATION INFORMATION 1145 N Summit Ave 10

11 SUMMIT APARTMENTS 2 LOCATION INFORMATION Location Maps 11

12 Aerial Map 2 LOCATION INFORMATION 12

13 OFFERING MEMORANDUM SUMMIT PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES FINANCIAL ANALYSIS 3 FINANCIAL ANALYSIS SUMMIT APARTMENTS FINANCIAL ANALYSIS 3 FINANCIAL SUMMARY INCOME & EXPENSES RENT ROLL UNIT MIX SUMMARY

14 3 FINANCIAL ANALYSIS Financial Summary INVESTMENT OVERVIEW ACTUAL PROFORMA Price $2,500,000 $2,500,000 Price per Unit $208,333 $208,333 GRM CAP Rate 3.7% 6.1% Cash-on-Cash Return (yr 1) 1.96 % 6.31 % Total Return (yr 1) $45,886 $105,697 Debt Coverage Ratio OPERATING DATA ACTUAL PROFORMA Gross Scheduled Income $146,808 $207,600 Total Scheduled Income $146,808 $207,600 Vacancy Cost $2,936 $3,917 Gross Income $143,872 $203,683 Operating Expenses $50,540 $50,540 Net Operating Income $93,332 $153,143 Pre-Tax Cash Flow $26,920 $86,731 FINANCING DATA ACTUAL PROFORMA Down Payment $1,375,000 $1,375,000 Loan Amount $1,125,000 $1,125,000 Debt Service $66,412 $66,412 Debt Service Monthly $5,534 $5,534 Principal Reduction (yr 1) $18,966 $18,

15 Income & Expenses 3 FINANCIAL ANALYSIS INCOME SUMMARY ACTUAL PER SF PROFORMA PER SF Rental Income $146,808 $24.39 $207,600 $34.50 GROSS INCOME $146,808 $24.39 $207,600 $34.50 EXPENSE SUMMARY ACTUAL PER SF PROFORMA PER SF Insurance $4,189 $0.70 $4,189 $0.70 Water & Sewage $6,026 $1.00 $6,026 $1.00 Electricity (Separately Metered) $374 $0.06 $374 $0.06 Gas (Separately Metered) $0 $0.00 $0 $0.00 Trash Removal $1,981 $0.33 $1,981 $0.33 Pest Control $390 $0.06 $390 $0.06 Gardener/Landscaping $1,300 $0.22 $1,300 $0.22 Maintenance & Reserves $5,000 $0.83 $5,000 $0.83 Cleaning Expenses $800 $0.13 $800 $0.13 Licenses $480 $0.08 $480 $0.08 Property Tax (1.2% of $2,500,000.00) $30,000 $4.99 $30,000 $4.99 GROSS EXPENSES $50,540 $8.40 $50,540 $8.40 NET OPERATING INCOME $93,332 $15.51 $153,143 $

16 Rent Roll 3 FINANCIAL ANALYSIS UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) TENANT RENT SEC 8 LEASE START LEASE END CURRENT RENT SECURITY DEPOSIT 1A $545 $480 4/1/14 Month-Month $1,025 $1,200 1B $1125-1/1/14 Month-Month $1,125 $1, $981-10/18/13 Month-Month $981 $1, $ /18/13 Month-Month $1,050 $1, $1185-1/1/16 Month-Month $1,525 $2, $875-5/1/15 1/1/18 $875 $ $902-1/1/14 4/3/18 $902 $ $213 $637 1/1/14 Month-Month $850 $ $549 $341 1/1/14 Month-Month $890 $ $137 $713 1/1/14 Month-Month $850 $ $81 $1019 1/1/14 Month-Month $1,100 $1, $1061-1/1/14 Month-Month $1,061 $980 6,040 $12,234 $12,

17 Unit Mix Summary 3 FINANCIAL ANALYSIS UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF $873 $2.49 $1,150 $ $1,042 $2.13 $1,525 $ $1,075 $1.26 $1,775 $2.09 Totals / Averages % 6,040 $11,894 $1.97 $17,300 $

18 OFFERING MEMORANDUM SUMMIT PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES SALE COMPARABLES 4 SALE COMPARABLES SUMMIT APARTMENTS SALE COMPARABLES 4 SALE COMPS SALE COMPS SUMMARY SALE COMPS MAP

19 SUMMIT APARTMENTS 4 SALE COMPARABLES Sale Comps SUBJECT PROPERTY 1145 N Summit Ave Pasadena, CA Sale Price: $2,500,000 Year Built: 1928 Building SF: 6,018 SF Price PSF: $ No. Units: 12 Price / Unit: $208,333 GRM: Cap: 3.73% 677 S. LAKE AVE. 677 S. Lake Ave. Pasadena, CA Sale Price: $2,700,000 Year Built: 1950 Building SF: 5,648 SF Price PSF $ No. Units 10 Price / Unit $270,000 CAP: 3.5% Closed: 12/01/2016 Occupancy: 70% GRM: E. VILLA ST. 815 E. Villa St. Pasadena, CA Sale Price: $2,430,000 Year Built: 1964 Building SF: 8,079 SF Price PSF $ No. Units 12 Price / Unit $202,500 CAP: 2.45% Closed: 07/22/2016 Occupancy: 100% GRM: E VILLA ST. 789 E Villa St. Pasadena, CA Sale Price: $2,330,000 Year Built: 1963 Building SF: 7,710 SF Price PSF $ No. Units 12 Price / Unit $194,166 CAP: 3.15% Closed: 06/29/2016 Occupancy: 100% GRM: NOI: $73,

20 4 SALE COMPARABLES Sale Comps N. MADISON AVE 497 N. Madison Ave Pasadena, CA Sale Price: $2,050,000 Year Built: 1921 Building SF: 5,282 SF Price PSF $ No. Units 10 Price / Unit $205,000 CAP: 3.2% Closed: 07/29/ BARTHE DR Barthe Dr. Pasadena, CA Sale Price: $3,135,000 Year Built: 1954 Building SF: 8,689 SF Price PSF $ No. Units 16 Price / Unit $195,937 CAP: 4.4% Closed: 05/05/

21 4 SALE COMPARABLES Sale Comps Summary SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS Summit Apartments 1145 N Summit Ave Pasadena, CA $2,500,000 6,018 SF $ $208, % SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE S. Lake Ave. 677 S. Lake Ave. Pasadena, CA E. Villa St. 815 E. Villa St. Pasadena, CA E Villa St. 789 E Villa St. Pasadena, CA N. Madison Ave 497 N. Madison Ave Pasadena, CA Barthe Dr Barthe Dr. Pasadena, CA $2,700,000 5,648 SF $ $270, % /01/2016 $2,430,000 8,079 SF $ $202, % /22/2016 $2,330,000 7,710 SF $ $194, % /29/2016 $2,050,000 5,282 SF $ $205, % /29/2016 $3,135,000 8,689 SF $ $195, % /05/2017 SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS TOTALS/AVERAGES $2,529,000 7,082 SF $ $210, %

22 SUMMIT APARTMENTS 4 SALE COMPARABLES Sale Comps Map SUBJECT PROPERTY 1145 N Summit Ave Pasadena, CA S. LAKE AVE. 815 E. VILLA ST. 677 S. Lake Ave. Pasadena, CA E. Villa St. Pasadena, CA E VILLA ST. 497 N. MADISON AVE 789 E Villa St. Pasadena, CA N. Madison Ave Pasadena, CA BARTHE DR Barthe Dr. Pasadena, CA

23 OFFERING MEMORANDUM SUMMIT PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES ON MARKET COMPARABLES 5 ON MARKET COMPARABLES SUMMIT APARTMENTS ON MARKET COMPARABLES 5 ON MARKET COMPS ON MARKET COMPS SUMMARY ON MARKET COMPS MAP

24 5 ON MARKET COMPARABLES On Market Comps SUBJECT PROPERTY 1145 N Summit Ave Pasadena, CA Sale Price: $2,500,000 Year Built: 1928 Building SF: 6,018 SF Price PSF: $ No. Units: 12 Price / Unit: $208,333 GRM: Cap: 3.73% E WASHINGTON BLVD E Washington Blvd Pasadena, CA Sale Price: $1,988,000 Year Built: 1941 Building SF: 4,410 SF Price PSF $ No. Units 8 Price / Unit $248,500 CAP: 3.5% Occupancy: 95% HURLBUT ST 89 Hurlbut St Pasadena, CA Sale Price: $2,700,000 Year Built: 1961 Building SF: 4,661 SF Price PSF $ No. Units 9 Price / Unit $300,000 CAP: 1.1% GRM: N. LOS ROBLES AVE 777 N. Los Robles Ave Pasadena, CA Sale Price: $2,600,000 Year Built: 1910 Building SF: 6,138 SF Price PSF $ No. Units 10 Price / Unit $260,000 CAP: 3.9% GRM:

25 5 ON MARKET COMPARABLES On Market Comps CATALINA AVE 103 Catalina Ave Pasadena, CA Sale Price: $1,789,594 Year Built: 1925 Building SF: 3,270 SF Price PSF $ No. Units 8 Price / Unit $223,699 CAP: 0% GRM: N RAYMOND N Raymond Pasadena, CA Sale Price: $1,100,000 Year Built: 1898 Building SF: 5,373 SF Price PSF $ No. Units 8 Price / Unit $137,500 CAP: 3.25% NOI: $35,

26 5 ON MARKET COMPARABLES On Market Comps Summary SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS Summit Apartments 1145 N Summit Ave Pasadena, CA $2,500,000 6,018 SF $ $208, % SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE E Washington Blvd E Washington Blvd Pasadena, CA Hurlbut St 89 Hurlbut St Pasadena, CA N. Los Robles Ave 777 N. Los Robles Ave Pasadena, CA Catalina Ave 103 Catalina Ave Pasadena, CA N Raymond N Raymond Pasadena, CA $1,988,000 4,410 SF $ $248, % On Market $2,700,000 4,661 SF $ $300, % On Market $2,600,000 6,138 SF $ $260, % On Market $1,789,594 3,270 SF $ $223,699 0% 0 8 On Market $1,100,000 5,373 SF $ $137, % - 8 On Market SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS TOTALS/AVERAGES $2,035,519 4,770 SF $ $236, %

27 On Market Comps Map 5 ON MARKET COMPARABLES SUBJECT PROPERTY 1145 N Summit Ave Pasadena, CA E WASHINGTON BLVD E Washington Blvd Pasadena, CA HURLBUT ST 89 Hurlbut St Pasadena, CA N. LOS ROBLES AVE 777 N. Los Robles Ave Pasadena, CA CATALINA AVE 103 Catalina Ave Pasadena, CA N RAYMOND N Raymond Pasadena, CA

28 OFFERING MEMORANDUM SUMMIT PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES RENT COMPARABLES 6 RENT COMPARABLES SUMMIT APARTMENTS RENT COMPARABLES 6 RENT COMPS RENT COMPS SUMMARY RENT COMPS MAP

29 6 RENT COMPARABLES Rent Comps SUBJECT PROPERTY 1145 N Summit Ave Pasadena, CA Year Built: 1928 Lot Size: 0.45 AC No. Units: 12 Avg. Rent/SF: $1.97 Avg. Size: 503 SF Avg. Rent: $ N RAYMOND AVE 390 N Raymond Ave Pasadena, CA Year Built: 1955 No. Units: 24 Occupancy: 97% Avg. Rent $1, N LAKE AVE 1070 N Lake Ave Pasadena, CA Year Built: 1973 No. Units: 115 Avg. Rent $1, N HUDSON AVE 1255 N Hudson Ave Pasadena, CA Year Built: 1982 Lot Size: AC No. Units: 44 Avg. Rent $1,

30 6 RENT COMPARABLES Rent Comps N MADISON AVE 823 N Madison Ave Pasadena, CA Year Built: 1928 No. Units: 4 Occupancy: 75% Avg. Rent $1, N LOS ROBLES 1091 N Los Robles Ave Pasadena, CA Year Built: 1989 No. Units: 24 Occupancy: 97% Avg. Rent $1, N SUMMIT AVE 839 N Summit Ave Pasadena, CA Year Built: 1989 No. Units: 9 Avg. Rent $1, LINCOLN AVE 869 Lincoln Ave Pasadena, CA Year Built: 1906 No. Units: 4 Occupancy: 75% Avg. Rent $1,

31 6 RENT COMPARABLES Rent Comps N RAYMOND AVE 1166 N Raymond Ave Pasadena, AK Year Built: 1926 Lot Size: 7733 AC No. Units: 4 Avg. Rent $1, PARKE ST 271 Parke St Pasadena, CA Year Built: 1963 Lot Size: AC No. Units: 22 Avg. Rent $2,

32 6 RENT COMPARABLES Rent Comps Summary RENT COMPS UNIT MIX RENT/UNIT N Raymond Ave 390 N Raymond Ave Pasadena, CA N Lake Ave 1070 N Lake Ave Pasadena, CA N Hudson Ave 1255 N Hudson Ave Pasadena, CA N Madison Ave 823 N Madison Ave Pasadena, CA N Los Robles 1091 N Los Robles Ave Pasadena, CA N Summit Ave 839 N Summit Ave Pasadena, CA Lincoln Ave 869 Lincoln Ave Pasadena, CA N Raymond Ave 1166 N Raymond Ave Pasadena, AK Parke St 271 Parke St Pasadena, CA Studio $1,195 Studio $1, $1, $1, $1, $1, $1, $1, $2,100 RENT/UNIT TOTALS/AVERAGES $1,

33 Rent Comps Map 6 RENT COMPARABLES SUBJECT PROPERTY 1145 N Summit Ave Pasadena, CA N RAYMOND AVE N Raymond Ave Pasadena, CA N LAKE AVE N Lake Ave Pasadena, CA N HUDSON AVE N Hudson Ave Pasadena, CA N MADISON AVE N Madison Ave Pasadena, CA N LOS ROBLES N Los Robles Ave Pasadena, CA N SUMMIT AVE N Summit Ave Pasadena, CA LINCOLN AVE Lincoln Ave Pasadena, CA N RAYMOND AVE N Raymond Ave Pasadena, AK PARKE ST Parke St Pasadena, CA

34 OFFERING MEMORANDUM SUMMIT PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES DEMOGRAPHICS 7 DEMOGRAPHICS SUMMIT APARTMENTS DEMOGRAPHICS 7 DEMOGRAPHICS MAP

35 Demographics Map 7 DEMOGRAPHICS POPULATION 0.5 MILES 1 MILE 1.5 MILES TOTAL POPULATION 12,818 39,947 71,375 MEDIAN AGE MEDIAN AGE (MALE) MEDIAN AGE (FEMALE) HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES TOTAL HOUSEHOLDS 3,352 11,601 23,040 # OF PERSONS PER HH AVERAGE HH INCOME $52,987 $56,646 $66,245 AVERAGE HOUSE VALUE $553,545 $528,049 $565,880 RACE 0.5 MILES 1 MILE 1.5 MILES % WHITE 50.4% 49.7% 52.1% % BLACK 21.3% 18.9% 18.5% % ASIAN 4.4% 5.5% 7.4% % HAWAIIAN 0.0% 0.0% 0.0% % INDIAN 0.7% 0.5% 0.4% % OTHER 20.3% 22.1% 18.1% ETHNICITY 0.5 MILES 1 MILE 1.5 MILES % HISPANIC 62.2% 60.6% 51.7% * Demographic data derived from 2010 US Census 35