The Cottages LA 421 Riverdale Dr PROPERTY HIGHLIGHTS 16 units in an excellent Glendale rental pocket. Close to shopping, restaurants, and Downtown Los Angeles. 89 Walk score Each unit with the exception of the manager's unit is completely furnished Prepared By Cindy Hill, CCIM Senior Vice President 818.846.1611 cindyhill@kw.com 9 enclosed garages that are rented separately for additional income Large 24,997 square foot lot and park-like landscaping Historically low vacancy rates and above market return for Glendale. A little over 10 g.r.m. and above a 6 cap 4061 Laurel Canyon Blvd. Studio City, CA 91604 www.valleyapartmentsales.com
INVESTMENT DETAILS ANALYSIS Analysis Date August 2018 PROPERTY Property Property Address The Cottages LA 421 Riverdale Dr Year Built 1926 PURCHASE INFORMATION Property Type MultiFamily Purchase Price $5,100,000 Units 16 Total Rentable Sq. Ft. 7,568 FINANCIAL INFORMATION Down Payment $2,550,000 LOANS Type Debt Term Amortization Rate Payment LO Costs Fixed $2,550,000 30 years 30 years 4.7% $13,225 INCOME & EXPENSES Gross Operating Income $452,450 Monthly GOI $37,704 Total Annual Expenses ($139,537) Monthly Expenses ($11,628)
EXECUTIVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs $5,100,000 Investment - Cash $2,550,000 First Loan $2,550,000 Investment Information Purchase Price $5,100,000 Price per Unit $318,750 Price per Sq. Ft. $673.89 Income per Unit $29,099 Expenses per Unit ($8,721) Income, Expenses & Cash Flow Gross Scheduled Income $465,576 Total Vacancy and Credits ($13,126) Operating Expenses ($139,537) Net Operating Income $312,913 Debt Service ($158,703) Cash Flow Before Taxes $154,210 Financial Indicators Cash on Cash Return Before Taxes 6.05% Debt Coverage Ratio 1.97 Capitalization Rate 6.14% Gross Rent Multiplier 10.95 Gross Income / Square Feet $61.52 Gross Expenses / Square Feet ($18.44) Operating Expense Ratio 30.84%
PRO FORMA SUMMARY INCOME Description Actual Per Unit Market Per Unit Gross Potential Rent $437,520 $27,345 $499,200 $31,200 Less: Vacancy ($13,126) ($820) ($14,976) ($936) Misc. Income $28,056 $1,754 $28,056 $1,754 Effective Gross Income $452,450 $28,278 $512,280 $32,018 OPERATING EXPENSES Description Actual Per Unit Market Per Unit Property Management Fee $23,279 $1,455 $24,960 $1,560 Taxes $63,750 $3,984 $63,750 $3,984 Insurance $3,624 $227 $3,624 $227 Gas $4,389 $274 $4,389 $274 Electricity, Water, Sewer $13,662 $854 $13,662 $854 Rubbish $1,584 $99 $1,584 $99 Pest Control $480 $30 $480 $30 Gardener $1,800 $113 $1,800 $113 Resident Manager $5,100 $319 $5,100 $319 General & Administrative $13,175 $823 $13,175 $823 IT, Wifi, Software, Netflix $3,588 $224 $3,588 $224 Advertising $106 $7 $106 $7 Building Maint & Repair $5,000 $313 $5,000 $313 Total Expenses ($139,537) ($8,721) ($141,218) ($8,826) NET OPERATING INCOME $312,913 $19,557 $371,062 $23,191
PRO FORMA SUMMARY UNIT MIX & MONTHLY SCHEDULED Type Units Actual Total Market Total 1+1 16 $2,279 $36,460 $2,600 $41,600 TOTALS 16 $36,460 $41,600 INVESTMENT SUMMARY Price: $5,100,000 Year Built: 1926 Units: 16 Price/Unit: $318,750 RSF: 7,568 Price/RSF: $673.89 Lot Size: 24,996 sf Floors: 1 APN: 5696-010-014 Cap Rate: 6.14% Market Cap Rate: 7.28% GRM: 10.95 Market GRM: 9.67 FINANCING SUMMARY Loan Amount: $2,550,000 Down Payment: $2,550,000 Loan Type: Fixed Interest Rate: 4.7% Term: 30 years Monthly Payment: $13,225 DCR: 1.97 ANNUALIZED INCOME Description Actual Market Gross Potential Rent $437,520 $499,200 Less: Vacancy ($13,126) ($14,976) Misc. Income $28,056 $28,056 Effective Gross Income $452,450 $512,280 Less: Expenses ($139,537) ($141,218) Net Operating Income $312,913 $371,062 Debt Service ($158,703) ($158,703) Net Cash Flow after Debt Service $154,210 $212,359 Principal Reduction $39,701 $39,701 Total Return $193,911 $252,060 ANNUALIZED EXPENSES Description Actual Market Property Management Fee $23,279 $24,960 Taxes $63,750 $63,750 Insurance $3,624 $3,624 Gas $4,389 $4,389 Electricity, Water, Sewer $13,662 $13,662 Rubbish $1,584 $1,584 Pest Control $480 $480 Gardener $1,800 $1,800 Resident Manager $5,100 $5,100 General & Administrative $13,175 $13,175 IT, Wifi, Software, Netflix $3,588 $3,588 Advertising $106 $106 Building Maint & Repair $5,000 $5,000 Total Expenses $139,537 $141,218 Expenses Per RSF $18.44 $18.66 Expenses Per Unit $8,721 $8,826
PROPERTY DESCRIPTION 16 units in Glendale Excellent location KW Commercial is proud to represent this 16-unit apartment building in Glendale. The building was constructed in 1926, and it consists of (16) one-bedroom, one-bathroom units. Its lot size is 24,996 square feet, with a total of 7,570 rentable square feet. The units are completely furnished (with the exception of the manager's unit) and are rented to a combination of executive housing, and long term housing. 13 of the 16 utilities are paid for by the seller, but the property is separately metered for gas and electricity in case the new owner wants to transition back to traditional rentals. There is additional income from garage rentals and it can be increased as the owner is using multiple garages. The property has a historically high occupancy rate and a new owner can take over and achieve an above market return for the city of Glendale. The building can be financed with Chase Bank with 50% down or First Republic with 40% down. The property is centrally located in Glendale, which is a highly desirable rental market. As a major production center for the entertainment and animation industry, the city offers many amenities and attractions. Its residents enjoy excellent shopping and dining at the Americana at Brand, which features 75 shops and restaurants, as well an 18-plex theater. The city s numerous high-rated restaurants and attractions earned its title as Los Angeles neighborhood of the year in Curbed magazine.
UNIT MIX REPORT Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 16 1+1 473 $2,279 $36,460 $2,600 $41,600 16 7,568 $36,460 $41,600 UNIT MIX UNIT MIX SQUARE FEET 1+1 1+1 UNIT MIX INCOME UNIT MIX MARKET INCOME 1+1 1+1
UNIT RENT ROLL Unit Description Approx. Sq. Ft. Current Rent Pro Forma Rent Comments 1 1+1 473 $2,495 $2,600 2 1+1 473 $2,495 $2,600 3 1+1 473 $2,495 $2,600 4 1+1 473 $2,495 $2,600 5 1+1 473 $1,670 $2,600 6 1+1 473 $2,567 $2,600 7 1+1 473 $1,995 $2,600 8 1+1 473 $2,575 $2,600 9 1+1 473 $1,895 $2,600 10 1+1 473 $1,831 $2,600 11 1+1 473 $1,895 $2,600 12 1+1 473 $2,072 $2,600 13 1+1 473 $2,495 $2,600 14 1+1 473 $2,495 $2,600 15 1+1 473 $2,495 $2,600 16 1+1 473 $2,495 $2,600
PROPERTY PHOTOS The Cottages LA Spacious Living Room Cozy Bedroom Modern Kitchen Bathroom with Tiled Showers Naturally-lit Living Room Well-furnished Kitchen
421 Riverdale Dr PROPERTY PHOTOS The Cottages LA Front View Shady, Furnished Courtyard Area Park-like grounds Tree-lined Street Side View Garages rented for additional income
MAPS AND AERIALS 16 units in excellent rental pocket
the Cottages L.A. 421-425 Riverdale Drive
City of Glendale Over the course of its 100 year history, Glendale, with both Walt Disney and Dreamworks SKG holding offices in the city, became a center of produc on for the entertainment and anima on studios. Its wealth of resources means that the city provides a high quality of life to its residents. The city is a highly desirable rental market, as Curbed Magazine crowned Glendale as LA s Neighborhood of the Year in 2013. The city provides a plethora of upscale and hip shopping, excellent restaurants, and theatres, as well as the Americana at Brand, which features 75 shops and restaurants, as well as an 18 plex theatre. Its residents enjoy easy access to the 5,134, and 2 freeways. www.valleyapartmentsales.com
RECENT SALE COMPARABLES 8% Cap Rate 24.0 Gross Rent Multiplier 7% 21.0 6% 5% 18.0 15.0 Avg. 17.65 4% 3% Avg. 3.755 12.0 9.0 2% 6.0 1% 3.0 Subject 1 3 6 7 Subject 1 3 4 7 $408,000 Price per Unit $680 Price per Sq. Ft. $357,000 $595 $306,000 $255,000 $204,000 Avg. $284,331 $510 $425 $340 Avg. $395.05 $153,000 $255 $102,000 $170 $51,000 $85 Subject 1 2 3 4 5 6 7 8 Subject 1 2 3 4 5 6 7 8
RECENT SALE COMPARABLES S The Cottages LA 421 Riverdale Dr Sale Price $5,100,000 Units 16 Price/Unit $318,750 Price/SqFt $673.89 Cap Rate 6.14% Year Built 1926 GRM 10.95 # Units Unit Type 16 1+1 1 Sale Date 9/8/2017 302 Sinclair Ave 302 Sinclair Ave Glendale, CA 91206 Sale Price $3,100,000 Units 10 Price/Unit $310,000 Price/SqFt $326.87 Cap Rate 3.64% Year Built 1954 GRM 18.1 # Units Unit Type 10 Two Bedroom One Bath 2 Sale Date 3/2/2018 1131 N Brand Blvd 1131 N Brand Blvd Glendale, CA 91202 Sale Price $3,600,000 Units 9 Price/Unit $400,000 Price/SqFt $473.68 Cap Rate N/A Year Built 1941 GRM N/A # Units Unit Type 9 Studio/Efficiency
RECENT SALE COMPARABLES 3 Sale Date 9/21/2017 150 Allen Ave 150 Allen Ave Glendale, CA 91201 Sale Price $4,745,000 Units 16 Price/Unit $296,563 Price/SqFt $298.52 Cap Rate 3.66% Year Built 1957 GRM 17.1 # Units Unit Type 1 Studio/Efficiency 4 One Bedroom One Bath 2 Two Bedroom One Bath 6 Two Bedroom Two Bath 3 Three Bedroom Two Bath 4 Sale Date 12/28/2017 1831 Riverside Dr 1831 Riverside Dr Glendale, CA 91201 Sale Price $3,550,000 Units 20 Price/Unit $177,500 Price/SqFt $446.88 Cap Rate N/A Year Built 1953 GRM 17.0 # Units Unit Type 20 Studio/Efficiency 5 Sale Date 5/18/2017 209-215 W Maple St 209-215 W Maple St Sale Price $2,800,000 Units 10 Price/Unit $280,000 Price/SqFt $422.51 Cap Rate N/A Year Built 1941 GRM N/A # Units Unit Type 10 Studio/Efficiency
RECENT SALE COMPARABLES 6 Sale Date 11/21/2017 222 N Jackson 222 N Jackson Glendale, CA 91206 Sale Price $2,465,000 Units 12 Price/Unit $205,417 Price/SqFt $375.82 Cap Rate 4.15% Year Built 1950 GRM N/A # Units Unit Type 10 Studio/Efficiency 2 Two Bedroom One Bath 7 Sale Date 8/9/2017 512 Griswold St Glendale, CA 91205 Sale Price $3,135,000 Units 10 Price/Unit $313,500 Price/SqFt $364.75 Cap Rate 3.57% Year Built 1964 GRM 18.4 # Units Unit Type 2 One Bedroom One Bath 8 Two Bedroom Two Bath 8 Sale Date 6/12/2017 1145 N Central Ave 1145 N Central Ave Glendale, CA 91202 Sale Price $3,500,000 Units 12 Price/Unit $291,667 Price/SqFt $451.38 Cap Rate N/A Year Built 1950 GRM N/A # Units Unit Type 3 Studio/Efficiency 9 One Bedroom One Bath
RECENT SALE COMPARABLES S 421 Riverdale Dr Glendale, CA, 91204 $5,100,000 1 302 Sinclair Ave Glendale, CA, 91206 $3,100,000 2 1131 N Brand Blvd Glendale, CA, 91202 $3,600,000 3 150 Allen Ave Glendale, CA, 91201 $4,745,000 6 222 N Jackson Glendale, CA, 91206 $2,465,000 4 1831 Riverside Dr Glendale, CA, 91201 $3,550,000 7 512 Griswold St Glendale, CA, 91205 $3,135,000 5 209-215 W Maple St Glendale, CA, 91204 $2,800,000 8 1145 N Central Ave Glendale, CA, 91202 $3,500,000
PROPERTY PHOTOS Capital Improvements Updated, reflective coating on roof, about 3 years ago Copper Plumbing All updated faucets in kitchens and bathrooms, about 18 years ago 12 out of 16 bathtubs are updated Updated toilets Updated hot water heaters. All on stand and strapped. Hardwood floors were entirely replaced in 5 cottages; all other floors have been sanded and refinished. All new lighting Updated kitchen sinks and drains All new tile for bathroom walls and floors, as well as countertops except for one unit, which was replaced with formica. Updated electrical, including all new 400 amp service and wiring throughout building. All 30 stoves New refrigerators Main line into building was redone 15 years ago. One side of sewage line was redone 5-6 years ago Mini splits (9 years ago) and portable air conditioners (4-5 years ago) Fresh wallpaper in several units Elaborate Wi-Fi system, approx. 4 years ago 15 HDTV flat screen TVs in the last 6 years 16 Queen size beds within the last 6 years 15 Fully furnished and designed cottages within the last 6 years 5 Breakfast bars The roof had a reflective coating put on about 3 years ago Exposed fir floors in kitchens Sandblasted and recoated stucco, 16 years ago Updated exterior lights, heavy duty Spanish design (20 years ago)