POMONA APARTMENTS 102 Pomona Ave, Long Beach, CA 90803
Table of Contents Professional Bio... 3 Property Description... 4 Property Photos... 5 Location Map... 6 Demographics... 7 Unit Mix Report... 8 Executive Summary... 9 Pro Forma Summary... 10 Sale Comparables... 11
PROFESSIONAL BIO Mr. McCann commenced his commercial real estate career in 2014. In the second year of his career, BRC Advisors Manhattan Beach team was involved with 136 million dollars worth of real estate transactions. Jack specializes in investment sales with a emphasis on 1031- Tax-Deferred Exchanges in the Long Beach Area of LA County. Jack has been involved in the acquisition and disposition of Multifamily, Mixed use, and Development Properties. Jack has been the top producer of closed transactions for all junior agents within the firm since he joined. Jack's ability to consistently stay on the pulse of market has proven successful for many of his investors. His ability to knowledgeably predict the best outcomes for his clients based on there current situations comes from learning and constantly crafting his skills on the phone, leveraging for meetings, and being able to list/sell buildings. He does this by understanding the clients wants and needs in order to help steer them in the best situation possible based on the market realities. Jack can be reached directly at 310-382-1063 & Page 3
PROPERTY DESCRIPTION Property Description BRC Advisors, as exclusive listing Agent is pleased to present this opportunity to acquire a 6 unit apartment building located in Belmont Shores in Long Beach, CA. The subject property is located at 102 Pomona Ave in the city of Long Beach. The property has (6) six units, (5) five are 2 bedroom and one bathroom and (1) one is a studio unit. The property has laundry room and 5 single car garages. The interior of the property is in good condition, some of the units have original hardwood floors. Other units have upgraded cabinets, floors, and kitchens. The 2 bedroom units are over 1000 square feet of living space. The exterior of the property is clean and well maintained. Built in 1920's the property has alot of original charm and character. The property is 2 blocks from the beach. The two lower units have there own personal yards on the front side of the property. The City of long beach is going through a transformation right now with over a billion dollars of new development happening within 3 miles of the subject property. The "shore" as locals call it have shopping, dining and outdoor activities. This property is in a wonderful location for any investor looking for a trophy asset in the best part of town. Page 4
PROPERTY PHOTOS Property Photos Property Frontage Alley Access Individually Metered Garages/Rear Entrance Pomona Avenue Rear entrance of property Page 5
LOCATION MAP Page 6
DEMOGRAPHICS Population Characteristic 1 Mile 3 Mile 5 Mile Ages 0-4 670 8,742 18,465 Ages 5-9 824 10,049 22,200 Ages 10-14 694 8,789 20,474 Ages 15-19 598 8,317 20,065 Ages 20-24 596 9,219 21,328 Ages 25-29 671 10,418 22,274 Ages 30-34 926 11,828 23,169 Ages 35-39 1,333 13,608 24,797 Ages 40-44 1,716 14,766 26,119 Ages 45-49 1,865 14,841 26,491 Ages 50-54 1,824 13,572 24,675 Ages 55-59 1,681 11,864 21,901 Ages 60-64 1,514 9,924 18,397 Ages 65-69 1,265 7,849 14,518 Ages 70-74 949 5,890 10,807 Ages 75-79 663 4,357 7,939 Ages 80-84 409 3,220 5,821 Race Characteristic 1 Mile 3 Mile 5 Mile Non Hispanic White 17,214 106,501 191,258 Population Black 92 13,276 29,041 Population Am In/AK Nat 2 272 574 Household Income 1 Mile 3 Mile 5 Mile Median Household Income $73,781 $55,297 $55,128 < $10000 357 4,675 8,954 $10000-$14999 231 4,506 8,519 $15000-$19999 267 3,599 7,080 $20000-$24999 310 4,163 7,965 $25000-$29999 478 3,850 7,014 $30000-$34999 544 4,238 6,858 $35000-$39999 594 3,719 6,449 $40000-$44999 269 3,812 5,934 $45000-$49999 485 3,345 5,492 $50000-$60000 825 5,879 9,625 $60000-$74000 720 7,660 12,311 $75000-$99999 849 8,803 15,279 $100000-$124999 896 5,822 10,260 $125000-$149999 754 3,551 6,306 $150000-$199999 926 4,027 8,102 > $200000 1,333 4,313 7,636 Characteristic Housing 1 Mile 3 Mile Housing Units 11,745 88,471 Occupied Housing Units 10,887 81,225 Owner Occupied Housing Units 5,038 31,770 Renter Occupied Housing Units 5,849 49,455 Vacant Housing Units 858 7,246 Page 7
UNIT MIX REPORT Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 1 2 BR + 1 BA 1020 $1,800 $1,800 $2,400 $2,400 1 2 BR + 1 BA 1020 $2,600 $2,600 $2,400 $2,400 1 2 BR + 1 BA 1020 $2,180 $2,180 $2,400 $2,400 1 Studio + 1BA 467 $1,430 $1,430 $1,600 $1,600 1 2 BR + 1 BA 1020 $2,200 $2,200 $2,400 $2,400 1 2 BR + 1 BA 1020 $1,900 $1,900 $2,400 $2,400 6 5,567 $12,110 $13,600 UNIT MIX UNIT MIX SQUARE FEET Studio + 1BA Studio + 1BA UNIT MIX INCOME UNIT MIX MARKET INCOME Studio + 1BA Studio + 1BA Page 8
EXECUTIVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs $2,650,000 Investment - Cash $1,325,000 First Loan $1,325,000 Investment Information Purchase Price $2,650,000 Price per Unit $441,667 Price per Sq. Ft. $476.02 Income per Unit $24,420 Expenses per Unit ($8,059) Income, Expenses & Cash Flow Gross Scheduled Income $146,520 Total Vacancy and Credits ($4,360) Operating Expenses ($48,352) Net Operating Income $93,809 Debt Service ($78,218) Cash Flow Before Taxes $15,590 Financial Indicators Cash on Cash Return Before Taxes 1.18% Debt Coverage Ratio 1.20 Capitalization Rate 3.54% Gross Rent Multiplier 18.09 Gross Income / Square Feet $26.32 Gross Expenses / Square Feet ($8.69) Operating Expense Ratio 34.01% Page 9
PRO FORMA SUMMARY UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Market Total 2 BR + 1 BA 1 $21,600 $21,600 $28,800 $28,800 2 BR + 1 BA 1 $31,200 $31,200 $28,800 $28,800 2 BR + 1 BA 1 $26,160 $26,160 $28,800 $28,800 Studio + 1BA 1 $17,160 $17,160 $19,200 $19,200 2 BR + 1 BA 1 $26,400 $26,400 $28,800 $28,800 2 BR + 1 BA 1 $22,800 $22,800 $28,800 $28,800 TOTALS 6 $145,320 $163,200 INVESTMENT SUMMARY Price: $2,650,000 Year Built: 1928 Units: 6 Price/Unit: $441,667 RSF: 5,567 Price/RSF: $476.02 Lot Size: 4,632 sf Floors: 3 APN: 7245-006-013 Cap Rate: 3.54% Market Cap Rate: 4.65% GRM: 18.09 Market GRM: 15.02 FINANCING SUMMARY Loan Amount: $1,325,000 Down Payment: $1,325,000 Loan Type: Fixed Interest Rate: 4.25% Term: 30 years Monthly Payment: $6,518 DCR: 1.2 ANNUALIZED INCOME Description Actual Market Gross Potential Rent $145,320 $163,200 Less: Vacancy ($4,360) ($4,896) Misc. Income $1,200 $13,200 Effective Gross Income $142,160 $171,504 Less: Expenses ($48,352) ($48,352) Net Operating Income $93,809 $123,152 Debt Service ($78,218) ($78,218) Net Cash Flow after Debt Service $15,590 $44,934 Principal Reduction $22,338 $22,338 Total Return $37,928 $67,271 ANNUALIZED EXPENSES Description Actual Market Building Insurance $2,227 $2,227 Grounds Maintenance $1,200 $1,200 Maintenance $3,000 $3,000 Misc $2,500 $2,500 Repairs $2,500 $2,500 Taxes - Real Estate $33,125 $33,125 Utility-Water $2,600 $2,600 Utility - Electricity $600 $600 Utility - Gas $600 $600 Total Expenses $48,352 $48,352 Expenses Per RSF $8.69 $8.69 Expenses Per Unit $8,059 $8,059 Page 10
SALE COMPARABLES 8% Cap Rate 24.0 Gross Rent Multiplier 7% 21.0 6% 18.0 5% 4% Avg. 4.05 15.0 12.0 Avg. 15.3 3% 9.0 2% 6.0 1% 3.0 Subject 1 2 3 4 Subject 1 2 3 4 $448,000 Price per Unit $592 Price per Sq. Ft. $392,000 $336,000 $518 $444 Avg. $467.82 $280,000 $224,000 Avg. $252,563 $370 $296 $168,000 $222 $112,000 $148 $56,000 $74 Subject 1 2 3 4 Subject 1 2 3 4 Page 11
SALE COMPARABLES S 102 Pomona Ave Long Beach, CA 90803 Sale Price $2,650,000 Units 6 Price/Unit $441,667 Price/SqFt $476.02 Cap Rate 3.54% Year Built 1928 GRM 18.09 # Units Unit Type 1 2 BR + 1 BA 1 2 BR + 1 BA 1 2 BR + 1 BA 1 Studio + 1BA 1 2 BR + 1 BA 1 2 BR + 1 BA 1 Sale Date 9/15/2016 101 Termino Ave Long Beach, CA 90803 Sale Price $1,825,000 Units 8 Price/Unit $228,125 Price/SqFt $450.39 Cap Rate 4.08% Year Built 1947 GRM 15.2 # Units Unit Type 4 Studio/Efficiency 4 One Bedroom One Bath 2 Sale Date 9/7/2016 4617 E Ocean Blvd Long Beach, CA 90803 Sale Price $1,470,000 Units 5 Price/Unit $294,000 Price/SqFt $441.71 Cap Rate 4.0% Year Built 1942 GRM 15.5 # Units Unit Type 4 One Bedroom One Bath 1 Two Bedroom One Bath Page 12
SALE COMPARABLES 3 Sale Date 3/10/2016 5297 E The Toledo Long Beach, CA 90803 Sale Price $1,985,000 Units 8 Price/Unit $248,125 Price/SqFt $585.72 Cap Rate 4.0% Year Built 1947 GRM 15.5 # Units Unit Type 8 One Bedroom One Bath 4 Sale Date 3/2/2017 5212 E The Toledo Long Beach, CA 90803 Sale Price $2,400,000 Units 10 Price/Unit $240,000 Price/SqFt $393.44 Cap Rate 4.12% Year Built 1950 GRM 15.0 # Units Unit Type 1 Three Bedroom One Bath 2 Two Bedroom One Bath 4 One Bedroom One Bath Page 13
SALE COMPARABLES S 102 Pomona Ave Long Beach, CA, 90803 $2,650,000 1 101 Termino Ave Long Beach, CA, 90803 $1,825,000 2 4617 E Ocean Blvd Long Beach, CA, 90803 $1,470,000 3 5297 E The Toledo Long Beach, CA, 90803 $1,985,000 4 5212 E The Toledo Long Beach, CA, 90803 $2,400,000 Page 14