OFFERING SUMMARY 6732 Irvine is a stunning new construction fourplex that was fully leased up (subject to C of O) in record speed at market rents, making for a real 5.66% cap rate. Due to gas/c of O not being in as quickly as hoped, two of the tenants may have to bow out but rest assured, based on the ease of renting these units the first time, finding replacement tenants will be a piece of cake. Aside from being an extremely easy rental, this building boasts: - A chic black and white Cape Cod style exterior - A sleek interior with upscale finishes, stainless steel appliances and high ceilings - No rent control - A REAL cap rate of 5.66% - A location that is gentrifying rapidly near the future home of NoHo West 6732 Irvine is made up of two 4 bedroom, 3 bathroom units that are townhome style with rents of $3,500 and two 3 bedroom, 2 bathroom units that are single story (one above the other) with rents of $2,900 and $3,100. The property boasts eight parking spaces.
PROPERTY OVERVIEW THE PROPERTY: Address: 6732 Irvine Ave, North Hollywood, CA 91606 APN: 2320-014-009 # Units: 4 Units in 2 Separate Buildings Year Built: 2018 Building Size (SF): 5,700 Lot Size (SF): 7,799 Zoning: Rent Control: LARD1.5 None THE OFFERING: List Price: $2,150,000 Cap Rate: 5.66% GRM: 13.78 Price Per House: $537,500 Price Per SF: $377.19 UTILITIES: Water: Separately Metered for Units (Tenant Pays)+ 1 House Meter for Common Area (Landlord Pays) Electric: Gas: Separately Metered for Units (Tenant Pays)+ 1 House Meter for Common Area (Landlord Pays) Separately Metered (Tenant Pays) AMENITIES: Stories: Two 2-Story Duplexes, Townhome Style in the Back, Upstairs/Downstairs Units in the Front Appliances: Parking: Air/Heat: Landscaping: Additional Perks: Top of the Line Stainless Steel Samsung Appliances 8 Uncovered Spots in the Rear or the Property Central Drought Tolerant Balconies, High Ceilings and Real Hardwood Stairs!
INVESTMENT HIGHLIGHTS All 4 units were rented at market rent in record speed. (Subject to C of O)* NO RENT CONTROL! This property merges chic cape cod style architecture with the profitable new construction fourplex model. Incredible, real 5.66% pro forma cap rate. Located minutes from NoHo West, the mixed-use development project that is poised to transform this area of North Hollywood. This property offers buyers immediate opportunity for cash flow as well as massive appreciation potential. Brand new 2018 construction. Top of the line EVERYTHING! All units are separately metered for gas, electric and WATER! The expenses on this property are minimal. Fluid, open floorplans. Due to the high quality of construction, the property is extremely low maintenance. Property comes with a 1 year builder s warranty! 8 parking spots *Two units may be vacating because the gas/c of O hasn t come in yet.
LOCATION HIGHLIGHTS We pre-rented this building at market rents in record speed (subject to C of O).* The demand for this building was incredible. We found that due to the price points being more reasonable, tenants rushed to get in their applications. Additionally, we discovered that the same renters who were applying for fourplexes in further south locations in North Hollywood were also applying to 6732 Irvine. This rental experience has proven that this area is experiencing massive gentrification and that it is drawing the same renters as properties near Toluca Lake. As prices in further south locations of NoHo are going up, this area surrounding 6732 Irvine is gentrifying quickly. New construction and highly renovated apartments and homes are popping up all throughout this part of town, creating an area that tenants are flocking to. This location is much like a Silver Lake of the Valley. A little over a mile from the future home of NoHo West, an enormous mixed-use development project that will consist of 570,000 square feet of space for retail, dining, living and office. More information here: www.nohowest.com *Two units may be vacating because the gas/c of O hasn t come in yet.
LOCATION HIGHLIGHTS MAP
FINANCIAL SUMMARY & RENT ROLL SUMMARIZED PRICING METRICS: BUILDING DESCRIPTION: FINANCING: Price: $2,150,000 No. of Units 4 Loan Amount $1,290,000 Down: 40% $860,000 Yr. Built 2018 Interest Rate 4.70% Current GRM: 13.78 Lot Size (acres) 0.18 Monthly Payment ($6,690.43) Pro Forma GRM: 13.78 Lot Size (sq. ft) 7,799 LTV 70% Current Cap Rate: 5.66% Bldg SF 5,700 Amortization (Years) 30 Pro Forma Cap Rate: 5.66% Zoning LARD1.5 Proposed/Assumption Proposed $/Unit: $537,500 Minimum DSCR 1.25 $/ SF: $377.19 RENT ROLL: UNIT # STATUS UNIT TYPE UNIT SIZE CURRENT RENT SCHEDULED GROSS INCOME CURRENT RENT PER SF PRO FORMA RENT PRO FORMA RENT PER SF LOSS-TO- LEASE 1 Occupied 4b/3b 1,554 $3,500 $3,500 $2.25 $3,500 $2.25 $0 2 Occupied 4b/3b 1,554 $3,500 $3,500 $2.25 $3,500 $2.25 $0 3 Occupied 3b/2b 1,254 $3,100 $3,100 $2.47 $3,100 $2.47 $0 4 Occupied 3b/2b 1,254 $2,900 $2,900 $2.31 $2,900 $2.31 $0 4 Totals/Averages: 5,616 $13,000 $13,000 $2.31 $13,000 $2.31 $0 *Two units may be vacating because the gas/c of O hasn t come in yet.
FINANCIAL ANALYSIS # UNITS UNIT MIX % OF TOTAL SIZE AVG RENT AVERAGE RENT/SF MONTHLY INCOME AVG PRO FORMA RENT AVERAGE PRO FORMA RENT/SF PRO FORMA MONTHLY INCOME 2 4b/3b 50% 1,554 $3,500 $2.25 $7,000 $3,500 $2.25 $7,000 2 3b/2b 50% 1,254 $3,000 $2.39 $6,000 $3,000 $2.39 $6,000 4 Totals/Averages: 1,425 $3,250 $2.28 $13,000 $3,250 $2.28 $13,000 Gross Potential Income: $156,000 $156,000 ANNUALIZED OPERATING DATA: ANNUALIZED EXPENSES: CURRENT PRO FORMA CURRENT PRO FORMA Gross Potential Rental Income $156,000 $156,000 Fixed Expenses Gain (Loss)-to-Lease $0 $0 Real Estate Taxes 1.1930% $25,650 $25,650 Gross Scheduled Rental Income $156,000 $156,000 Insurance.33/s.f. $1,881 $1,881 Less: Vacancy 3.0% ($4,680) 3.0% ($4,680) Utilities $150/unit $600 $600 Effective Gross Income $151,320 $151,320 Less: Expenses ($29,731) ($29,731) Controllable Expenses Miscellaneous Other Income $0 $0 Contract Services $150/unit $600 $600 Net Operating Income $121,590 $121,590 Repairs & Maintenance $250/unit $1,000 $1,000 Debt Service ($80,285) ($80,285) Pre-Tax Cash Flow 4.80% $41,304 4.80% $41,304 TOTAL EXPENSES $29,731 $29,731 Principal Reduction $20,084 $20,084 EXPENSES/UNIT $7,433 $7,433 Total Return 7.14% $61,388 7.14% $61,388 EXPENSES/SF $5.22 $5.22 % of EGI 19.6% 19.6%
SALES COMPARABLES MAP Subject Property: 6732 Irvine 5756 Fulcher 5650 Fulcher 5740 Case 11319 Miranda 11918 Vanowen 5743 Case
SALES COMPARABLES CHART # ADDRESS UNITS SALES PRICE $/ SF $/ UNIT CAP RATE GRM BLDG SF LOT SF CLOSE DATE YEAR BUILT 1 5756 Fulcher 3 $1,700,000 $356.92 $556,666 5.71% 12.76 4,763 7,000 1/5/18 2017 2 5650 Fulcher 3 $1,745,000 $373.42 $581,667 5.59% 13.10 4,673 6,999 1/31/18 2017 3 5740 Case 4 $2,275,000 $424.12 $568,750 5.53% 14.04 5,364 6,000 4/11/18 2018 4 11319 Miranda 4 $2,200,000 $407.41 $550,000 5.76% 13.68 5,400 7,309 11/9/17 2017 5 11918 Vanowen 4 $2,220,000 $368.16 $555,000 5.66% 14.12 6,030 5,940 8/8/17 2017 6 5743 Case 4 $2,000,000 $442.09 $500,000 5.68% 13.89 4,524 6,974 4/2/18 2018 AVERAGE: 3.67 $2,023,333 $394.75 $551,818 5.66% 13.60 5,126 6,704 6732 Irvine: 4 $2,150,000 $377.19 $537,500 5.66% 13.78 5,700 7,799
NEARBY RENT COMPS 4 BEDROOM
NEARBY RENT COMPS 3 BEDROOM
NEARBY RENT COMPS 3 BEDROOM
NEARBY RENT COMPS 3 BEDROOM
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