For more information contact: Managing Director scott@rcre.co 01456686 Casey Lins Associate 714.333.6768 casey@rcre.co 01902650 18 Unit Development Opportunity Contemporary Layouts w / Kitchen Islands Side & Rear Alley Access Currently 3 Duplex Properties, Bungalow Style Competitively Priced Under $153,000 / Dev. Unit! Phone: Fax: 310.543.1030 1001 Manhattan Beach Blvd Manhattan Beach, CA 90266 www.rcre.co
Table of Contents Property Description Maps and Aerials Existing Property Details Pro Forma Summary Unit Mix Report Current Duplex Rent Comps Proposed Development Development Overview Proposed Rent Roll Recent Construction Rent Comps Plan Cover Sheet Ground Level / Parking First Floor Second Floor Third Floor Roof / Roof Decks / Access Comparable Sales Sales Comparables
Property Description Silicon Beach Residential 18 INVESTMENT SUMMARY Investment / Development Opportunity in Silicon Beach Residential Community of Playa Vista. This community is benefiting from a massive influx of highly educated, well paid workers to the tech community. Major redevelopment in both residential and commercial is contributing to a "seismic shift" in the landscape and demographics of the area. New projects like this are extremely well positioned to accommodate tomorrow's highly educated, young, well paid residents. Approved 18 unit project w includes a density bonus. 14,965 SF proposed building. 2 Units shall be designated as Very Low Income. 16 Units full market rent. Top floor units have lofts and roof decks. Most units have a Balcony. INVESTMENT OPTIONS 1. Build now with current plans. It is estimated that the total cost to revenue would be around 13X and 5.5% CAP with built in equity up to around $2,500,000. The current plans are available. See the section titled PROPOSED DEVELOPMENT for details. 2. Hold and build later. Currently there are 3 duplex properties on 3 lots for a total of 6 units. Each unit is estimated to be 762 SF, is single level, and in a bungalow style. One of the units was legally converted into a 1 bed 2 Bath + Den. Additional units could potentially be converted to accommodate more baths and sleeping areas. With unit turn-over one could potentially rent existing units for market rate returns, or simply hold, and build later. The Income and Expenses outlined in the EXISTING PROPERTY DETAILS column illustrate this option. These estimations and projections are for marketing purposes only and should not be considered to be fully validated. Buyer to conduct his own investigations.
Maps and Aerials
Existing Property Details
Pro Forma Summary UNIT MIX & MONTHLY SCHEDULED INCOME Type Units Actual Total Market Total 1 + 1 Bungalow 1 $685 $685 $2,150 $2,150 1 + 2 + D Bungalow 1 $1,639 $1,639 $2,450 $2,450 1 + 1 Bungalow 1 $1,530 $1,530 $2,150 $2,150 1 + 1 Bungalow 1 $598 $598 $2,150 $2,150 1 + 1 Bungalow 1 $669 $669 $2,150 $2,150 1 + 1 Bungalow 1 $727 $727 $2,150 $2,150 INVESTMENT SUMMARY TOTALS 6 $5,848 $13,200 Price: $2,750,000 Year Built: 1953 Units: 6 Price/Unit: $458,333 RSF: 4,032 Price/RSF: $682.04 Lot Size: 10,540 sf Floors: 1 ANNUALIZED INCOME Actual Market Gross Potential Rent $70,172 $158,400 Less: Vacancy $0 $0 Effective Gross Income $70,172 $158,400 Less: Expenses ($37,500) ($39,300) Net Operating Income $32,672 $119,100 APN: 4221007026, Cap Rate: 1.19% Market Cap Rate: 4.33% GRM: 39.19 Market GRM: 17.36 ANNUALIZED EXPENSES Actual Market Repairs $3,000 $3,000 Reserves $0 $1,800 Taxes - Real Estate $30,000 $30,000 Utilities $4,500 $4,500 Total Expenses $37,500 $39,300 Expenses Per RSF $9.30 $9.75 Expenses Per Unit $6,250 $6,550 Actual Income and Expense denotes projected income for the property with the existing structures.
Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 1 1 + 1 Bungalow 672 $685 $685 $2,150 $2,150 1 1 + 2 + D Bungalow 672 $1,639 $1,639 $2,450 $2,450 1 1 + 1 Bungalow 672 $1,530 $1,530 $2,150 $2,150 1 1 + 1 Bungalow 672 $598 $598 $2,150 $2,150 1 1 + 1 Bungalow 672 $669 $669 $2,150 $2,150 1 1 + 1 Bungalow 672 $727 $727 $2,150 $2,150 6 4,032 $5,848 $13,200 UNIT MIX UNIT MIX SQUARE FEET 1 + 2 + D Bungalow 1 + 2 + D Bungalow UNIT MIX INCOME UNIT MIX MARKET INCOME 1 + 2 + D Bungalow 1 + 2 + D Bungalow
Average rent near 4708 Centinela Avenue, Los Angeles, CA [single bedroom] Rentometer 6/20/17, 2:44 PM 4708 Centinela Avenue, Los Angeles, CA Results as of 20 Jun 2017 1653 2134 Rent 2615 Your results are based on 25 single bedroom rentals in a 0.77 mile radius. 1172 2,000 3096 AVERAGE $2,134 MEDIAN $2,150 $1,550 $2,770 80% $1,648 $2,550 60% Map data 2017 Google The research and data included in this report is aggregated from a variety of sources and many are third parties that are not affiliated with Rentometer, Inc. The information is believed to be accurate, but Rentometer, Inc. does not provide a warranty of any kind, either expressed or implied. Copyright 2017 Rentometer, Inc. https://www.rentometer.com/results/-nrmz_njyee Page 1 of 2
Average rent near 4708 Centinela Avenue, Los Angeles, CA [single bedroom] Rentometer 6/20/17, 2:44 PM https://www.rentometer.com/results/-nrmz_njyee Page 2 of 2
Proposed Development
Annual Projected Rent $557,400 GRM (Projected @ Completion for Valuation) 16 Estimated Completed Value $8,918,400 Estimated Value / SF $596 NOI $362310 CAP (@ Estimated Valuation) 4.06% CAP (@ Developer Cost) 5.57% Land Cost $2,750,000 Estimated ALL IN Build Cost $250 @ / SF $3,750,000 250 Entrepreneurial Profit $2,418,400 ROI (@ Completion) 87.94%
Table 1 Proposed Rent Roll - 4706 S. Centinela Unit # Unit SF Loft SF Balcony SF Balcony SF Total Unit SF $$/SF Bed Bath Features Proposed Rent 101 631 35 666 $0.98 1 1 Balcony $650.00 0 102 760 760 $3.29 1 1 $2,500.00 0 103 705 55 760 $3.16 1 1 $2,400.00 0 104 708 55 763 $3.15 1 1 Balcony $2,400.00 0 105 716 53 769 $3.12 1 1 Balcony $2,400.00 0 106 683 31 714 $3.36 1 1 Balcony $2,400.00 0 REC ROOM 600 600 $0.00 1 $0.00 201 631 35 666 $3.45 1 1 Balcony $2,300.00 0 202 760 760 $0.86 1 1 $650.00 0 203 704 55 759 $3.16 1 1 Balcony $2,400.00 0 204 708 55 763 $3.15 1 1 Balcony $2,400.00 0 205 716 53 769 $3.12 1 1 Balcony $2,400.00 0 206 1192 1192 $3.31 3 2 $3,950.00 0 301 676 167 102 945 $3.28 1 1 Loft + Roof Deck $3,100.00 0 302 760 110 163 1033 $3.05 1 1 Loft + Roof Deck $3,150.00 0 303 705 136 126 967 $3.26 1 1 Loft + Roof Deck $3,150.00 0 304 708 144 115 967 $3.21 1 1 Loft + Roof Deck $3,100.00 0 305 716 136 153 1005 $3.13 1 1 Loft + Roof Deck $3,150.00 0 306 1192 1192 $3.31 3 2 $3,950.00 0 Average $2.81 Total $46,450.00 TOTALS: $46,450.00
Comparable Rental Units Built From 2009 to Present Azure the Residence 11900 Courtleigh Dr, CA 90066 Floor Plan SF $$ Ave Rent $ / SF 1 + 1.5 1054 2785 $2.64 Lindblade Lofts 4270 Lindblade Dr., Floor Plan SF $$ Ave Rent $ / SF 1+1 925 3200 $3.46 1+1.5 1095 3500 $3.22 Landmark Chase 13365 W Washington Blvd, Floor Plan SF $$ Ave Rent $ / SF 1 + 1 973 3562 $3.66 2 + 2 1390 3925 $2.82 Mar Vista Lofts 3992 Inglewood Blvd, Floor Plan SF $$ Ave Rent $ / SF 2 + 2 960 2725 $2.84 The Oliver 11995 W Washington Culver City, CA 90066 Floor Plan SF $$ Ave Rent $ / SF 1 + 1 736 2895 $3.93 2 + 2 1370 4095 $2.99 Louise Apartments 12449 Louise Ave, Floor Plan SF $$ Ave Rent $ / SF 1 + 1 1075 3093 $2.88
Comparable Sales
Sales Comparables S Silicon Beach Development Sale Price $2,750,000 Units 6 Price/Unit $458,333 Price/SqFt $682.04 Cap Rate 1.19% Year Built 1953 GRM 39.19 # Units Unit Type 1 1 + 1 Bungalow 1 1 + 2 + D Bungalow 1 1 + 1 Bungalow 1 1 + 1 Bungalow 1 1 + 1 Bungalow 1 1 + 1 Bungalow NOTES The first comp demonstrates a similar development opportunity. Comp two and three demonstrate the exit sales range that a finished project could potentially yield. 1 3748 S Veteran Ave 3748 S Veteran Ave Los Angeles, CA 90034 In Escrow Sale Price $2,700,000 Units 0 Price/Unit Price/SqFt Cap Rate Year Built GRM N/A N/A N/A N/A N/A NOTES In escrow. 9,324 sf LAR3 lot. Vacant buildings. Approved plans for 15 units & 1 guest room. # Units Unit Type 2 Sale Date 8/4/2016 NOTES New Construction 4044 Redwood Ave 4044 Redwood Ave Sale Price $13,625,000 Units 0 Price/Unit N/A Price/SqFt $637.37 Cap Rate 3.5% Year Built 2015 GRM 18.5 # Units Unit Type
Sales Comparables 3 Sale Date 8/9/2016 NOTES New construction. Loft style apartments. 4270 S Lindblade Dr 4270 S Lindblade Dr Sale Price $11,400,000 Units 20 Price/Unit $570,000 Price/SqFt $518.72 Cap Rate 3.98% Year Built 2015 GRM 16.3 # Units Unit Type 20 One Bedroom One Bath
Sales Comparables S Los Angeles, CA, 90066 $2,750,000 1 3748 S Veteran Ave Los Angeles, CA, 90034 $2,700,000 2 4044 Redwood Ave Los Angeles, CA, 90066 $13,625,000 3 4270 S Lindblade Dr Los Angeles, CA, 90066 $11,400,000