REET LOS ANGELES, CALIFORNIA 6-UNIT MULTI-FAMILY INVESTMENT OFFERING MEMORANDUM
REET LOS ANGELES, CA Presented by ZACHARY KRASMAN Commercial Associate Partner 310 500 3906 zach@pacunionla.com License 01814990 DAVID BERG Estates Director 310 500 3931 david@smithandberg.com License 01481236 F. RON SMITH Founding Partner 310 500 1373 fron@smithandberg.com License 00961954
ZACHARY KRASMAN Commercial Associate Partner License 01814990 Zachary joined Pacific Union Commercial in 2016 after almost 10 years in commercial real estate with his previous firm, Investment Real Estate Associates. As a Partner in a group at IREA, he assisted more than $260,000,000 in closings since 2012, and brings with him that experience and continued dedication to his clients. Zachary specializes in the sale and acquisitions of multifamily and commercial properties in Los Angeles, with a keen knowledge and focus in Downtown, Inglewood, West Hollywood, Beverly Hills, and Santa Monica. PRESENTED BY KRASMAN SMITH & BERG 3
F. RON SMITH Founding Partner License 00961954 With his entrepreneurial spirit and penchant for shaking up the status quo, F. Ron Smith, along with four of his friends, launched Partners Trust in 2009 with the idea of creating a discerning and conscientious real estate brokerage. Through his leadership style and visionary marketing tactics, the company has since grossed more than $8.5 Billion in sales. In addition to recently being named as one of Variety Magazine s Los Angeles Real Estate Elite, F. Ron was ranked by the Wall Street Journal as the #24 producing agent in California by sales volume in 2015 as well as 14th in Los Angeles. In his own right, F. Ron has been involved in more than $2 Billion in residential real estate transactions. DAVID BERG Estates Director License 01481236 David Berg is one of California s leading real estate professionals whose success over the past 12 years has earned him a position at the forefront of the Los Angeles real estate scene. Named among REAL Trends top 200 agents in the state and top 100 in Los Angeles, David, known to most as Berg, puts forth an ideal blend of industry knowledge, negotiation skills and authentic personality, resulting in a seamless and enjoyable transaction for all parties. As one of the original associates at Partners Trust, David has been instrumental in the company s growth. PRESENTED BY KRASMAN SMITH & BERG 4
THE OFFERING 6 UNITS COPPER PLUMBING GATED PARKING CENTRAL HVAC SEPARATELY METERED The subject property is a 6-unit multi-family apartment building located in the vibrant Boyle Heights neighborhood of Los Angeles, California. The property consists of two separate structures: a duplex and a fourplex. Each unit has its own entrance, and the 2nd floor two-bedroom units have large balconies. The location offers very easy access to five freeways surrounding Downtown Los Angeles, as well as a very walkable neighborhood boasting an 86 Walkscore. With a highly desirable location in an area poised for rapid appreciation, N Soto Street presents an excellent investment opportunity. The unit mix consists of (2) 2+1+Den units, (2) 2+1 units, and (2) 1+1+Den units, all of which are separately metered for gas and electric. Great Boyle Heights Location PRESENTED BY KRASMAN SMITH & BERG 5
OFFERING SUMMARY, LOS ANGELES, CA 90033 PRICE: GROSS BUILDING SIZE: ZONING: PRICE /SF: PRICE /UNIT: CAP RATE: GRM: YEAR BUILT: LOT SIZE: APN: OWNERSHIP: PARKING: $1,099,000 5,912 SF +/- LAR3 $186 $183,167 4.20% 14.77 1924 8,250 SF +/- 5175-004-009 FEE SIMPLE 6 PARKING SPACES PROPERTY HIGHLIGHTS Great Walk Score: 86 Gated Fourplex & Duplex Separately Metered: Gas & Electric Some Units Have Balconies Significant Upside in Rents Copper Plumbing PRESENTED BY KRASMAN SMITH & BERG 6
MAP PRESENTED BY KRASMAN SMITH & BERG 7
MAP Downtown LA PRESENTED BY KRASMAN SMITH & BERG 8
FINANCIAL BREAKDOWN FINANCIAL INDICATORS ESTIMATED ANNUALIZED EXPENSES SOURCE OF INCOME CURRENT MARKET Price: $1,099,000 Taxes: 1.19% of price $13,078 # of Units Unit Type Avg. Rent Total Avg. Rent Income Down Payment: $1,099,000 Insurance: actual per owner $1,414 2 1+1+Den $899 $1,799 $1,250 $2,500 Down Payment %: 100% Repairs/Maint: $40 per unit/mo $2,880 2 2+1 $1,033 $2,066 $1,650 $3,300 Current CAP: 4.20% Utilities: $55 per unit/mo $3,960 2 2+2+Den $1,119 $2,238 $1,750 $3,500 Market CAP: 7.59% Trash/Pest/Gardener: $25 per unit/mo $1,800 Current GRM: 14.77 Off-Site Manager: 4% of GOI $2,888 Total Rental Income: $6,103 $9,300 Market GRM: 9.74 Laundry Income: $100 $100 Cost Per Sq. Ft.: $186 Cost Per Unit: $183,167 Cash on Cash Return: 4.20% Total Monthly Income: $6,203 $9,400 Expenses Per Unit: $4,337 Expenses Per Sq Ft: $4.40 ESTIMATED ANNUALIZED OPERATING DATA Total Expenses: $26,020 CURRENT MARKET Scheduled Gross Income: $74,430 $112,800 PROPERTY ABSTRACT PROPOSED FINANCING Less Vacancy: 3.0% $2,233 3.0% $3,384 Gross Operating Income: $72,197 $109,416 Units: 6 Loan Amount Rate Term Annual Pmt Less Expenses: 36.0% $26,020 23.8% $26,020 Year Built: 1924 $0 4.0% 30 $0 Net Operating Income: $46,177 $83,396 Lot Sq Ft: 8,250 Bldg Gross Sq Ft: 5,912 LOAN QUOTE AVAILABLE UPON REQUEST Less Loan Payments: $0 $0 Parking Spaces: 6 Pre-Tax Cash Flow: $46,177 $83,396 Zoning: LAR3 Percentage Return: 4.20% 7.59% N Soto St Los Angeles, CA 90033 Krasman Smith & Berg 310.500.3906 zach@pacunionla.com Gated Fourplex & Duplex (6 Units Total) with Courtyard 6 Parking Spaces - Gated Great Unit Mix - Significant Upside in Rents 6 Units Some with Balconies PRESENTED BY KRASMAN SMITH & BERG 9
RENT ROLL Unit Type Rent 2+1 $1,300 1/2 1+1+Den $1,048 735 2+1+Den $1,038 735 1/2 1+1+Den $751 737 2+1+Den $1,200 739 2+1 $766 Monthly Income $6,103 Annual Income $73,230 PRESENTED BY KRASMAN SMITH & BERG 10
PARCEL MAP PRESENTED BY KRASMAN SMITH & BERG 11
PACIFIC UNION INTERNATIONAL 9378 Wilshire Blvd Ste 200 Beverly Hills, CA 90212 For further information contact: ZACHARY KRASMAN Commercial Associate Partner 310 500 3906 zach@pacunionla.com License 01814990 DAVID BERG Estates Director 310 500 3931 david@smithandberg.com License 01481236 F. RON SMITH Founding Partner 310 500 1373 fron@smithandberg.com License 00961954