OFFERING MEMORANDUM P R I M E ECHO P A R K INVESTMENT OPPORTUNITY 825-827 N Beaudry Ave Los Angeles, CA 9002 Concord Real Estate Services 449 S Beverly Drive, First Floor Beverly Hills, CA 9022 www.concord-re.com BRE No. 093228 Guillermo Ma Senior Vice President Investment T 424 284 4468 E gma@concord-re.com BRE No. 0350503 Berenice Marquez Investment Associate T 424 284 4493 E bmarquez@concord-re.com BRE No. 965005
825-827 N BEAUDRY AVE LOS ANGELES, CA 9002 TABLE OF CONTENTS 3 7 23 Executive Summary Market Overview Market Comparables Financial Analysis
825-827 N Beaudry Ave Los Angeles, CA 9002 EXECUTIVE SUMMARY EXECUTIVE SUMMARY 3
EXECUTIVE SUMMARY Concord Real Estate Services is pleased to exclusively list 825-827 N Beaudry Ave, a prime investment opportunity in the highly sought after Echo Park submarket of Los Angeles. The subject property features a lot size of 6,999 sf with a 5 unit property consisting of 5,97 sf. The structures are comprised of a three story non-rent controlled unit built in 983, 827 N Beaudry Ave. The non rent controlled unit has 5 bedrooms & 3.5 bathrooms on with 9ft ceilings. The rear structure, 825 N Beaudry Ave, is a four-plex built in 965 consisting of two (2) bedroom/ bathroom units and two (2) 2 bedroom/ bathroom units. The owner has upgraded the gas valves, rear unit roof, rear water heaters, and recently built the property s perimeter wall. The building is also master metered for water and separately metered for gas/electricity. There is parking for every unit and two laundry rooms; one for the rear units and a private one for the front unit. All tenants are on a month-to-month terms. An astute investor can capitalize on the property's approximate 29% rental upside immediately on the nonrent controlled front unit, while progressively adding value towards the rear units. EXECUTIVE SUMMARY 4
INVESTMENT HIGHLIGHTS Rental upside ±29% Front (5 bed + 3.5 bath) SFR is non-rent controlled SFR has 9ft ceilings and an indoor patio New roof installed in rear building On-site parking for every unit Two laundry rooms Earthquake proof gas meters Family owned & managed for over 30 years Downtown Los Angeles views Located in prime Echo Park, within mile from DTLA Multiple developments in submarket Conveniently located near Interstate 5, 0, and the 0 EXECUTIVE SUMMARY 5
PROPERTY DESCRIPTION ADDRESS 825-827 N Beaudry Ave. Los Angeles, CA 9002 BUILDING SIZE 5,97 SF PARCEL NUMBER 5406-02-025 # OF UNITS 5 LOT SIZE 6,999 SF ZONING R3 # OF BUILDINGS 2 YEAR BUILT 965-983 # OF STORIES 2-3 PARKING 7 car garage with additional space outside UTILITIES: Gas/electricity separately metered CONSTRUCTION: Wood Frame and Stucco EXECUTIVE SUMMARY 6
PROPERTY DESCRIPTION: 825 N BEAUDRY AVE 825 N Beaudry Ave Building in rear (2) 2+ units (2) + units General Three garages through alley One gated parking space New roofing installed in 205 New water heater installed in 204 Laundry room with coin operated washer and dryer + + + 2+ 2+ 2+ EXECUTIVE SUMMARY 7
PROPERTY DESCRIPTION: 827 N BEAUDRY AVE 827 N Beaudry Front SFR Non rent controlled 9ft ceilings st floor/ground floor Laundry room (tenant owned) Recreational room Four car garage Storage Quarter bathroom 2nd floor Main entrance Kitchen Two dining rooms Living room One bedroom One bathroom Atrium/inner patio 3rd floor Three bedrooms Master bedroom Study Atrium/inner patio view One full bathroom with walk-in closet One shower bathroom 3 rd floor laundry room 2 nd floor kitchen st floor recreational area 2 nd floor living room 2 nd floor atrium/patio EXECUTIVE SUMMARY 8
PARCEL MAP 825-827 N Beaudry Ave Los Angeles, CA 9002 EXECUTIVE SUMMARY 9
NEIGHBORHOOD MAP 825-827 N Beaudry Ave Los Angeles, CA 9002 EXECUTIVE SUMMARY 0
825-827 N Beaudry Ave Los Angeles, CA 9002 MARKET OVERVIEW MARKET OVERVIEW
LOCAL FAVORITES DODGER STADIUM.9 MILES THE ECHOPLEX.7 MILES ELYSIAN PARK.8 MILE OSTRICH FARM. MILES DEMOGRAPHICS Echo Park is a historic and diverse neighborhood where you ll find everything from Dodger Stadium, the home of our beloved Los Angeles Dodgers, to Echo Park Lake, which reopened recently after a $45-million renovation. Locals and visitors alike enjoy paddle-boating around the lake, while the surrounding area continues to experience a retail, recreation and restaurant renaissance. Female Population Male Population Median Age Median Household Income Total Housing Units Total Population MARKET OVERVIEW 2
MARKET OVERVIEW Once a largely working-class neighborhood, Echo Park is now home to one of L.A.'s most densely packed night-life corridors, with more than 5 popular bars, clubs and restaurants drawing crowds each weekend and often on weeknights too. Changes to the area have reached a tipping point in the last two years as a new wave of upscale destinations opened their doors to the area's ever-increasing population of artists, musicians and loafers. Los Angeles Times MARKET OVERVIEW 3
POINTS OF INTERESTS MAP Bedrock LA Ostrich Farms Fix Coffee Time Travel Map Sunset Beer Company El Prado Dodger Stadium 825-827 N Beaudry Ave Los Angeles, CA 9002 Echo Park Lake Eightfold Coffee Guisados MARKET OVERVIEW 4
NEAR BY DEVELOPMENTS Alvarado St/ Clinton St 66 Unit Housing Complex 72 N Alvarado St 34 Unit Multi-Family Project Glendale Blvd/Sunset Blvd 70 Unit Apartments Echo Designer Loft Apartments 49 Unit Apartments 825-827 N Beaudry Ave Los Angeles, CA 9002 242 N Lake St 42 Unit Apartments 64-626 Temple St Mixed 55 Unit Apartment + Retail Boylston Arms 2 Unit Apartments Sunset Blvd/ Everett St Mixed 24 Unit Apartment + Retail MARKET OVERVIEW 5
MARKET OVERVIEW TRANSIT AND PEDISTRIAN ORIENTED BUS LINES 86 Very Walkable Most errands can be accomplished on foot. 78 WALK SCORE TRANSIT SCORE Excellent Transit Transit is convenient for most trips. 48 BIKE SCORE Somewhat Bikeable Steep hills, minimal bike lanes. 4 Metro Local Line 0.2 mi 2 Metro Local Line 0.2 mi 704 Metro Rapid Line 0.3 mi 60 Metro Local Line 0.3 mi 92 Metro Rapid Line 0.3 mi Dodger Stadium Express.4 mi ECHO PARK Echo Park is the 20th most walkable neighborhood in Los Angeles with 47,37 residents. There are about 94 restaurants, bars and coffee shops in Greater Echo Park Elysian. People in Greater Echo Park Elysian can walk to an average of 4 restaurants, bars and coffee shops in 5 minutes. This location is in the Historic Cultural neighborhood in Los Angeles. Nearby parks include Everett Park, Alpine Park and Vista Hermosa Park. MARKET OVERVIEW 6
825-827 N Beaudry Ave Los Angeles, CA 9002 MARKET COMPARABLES MARKET COMPARABLES 7
SALES COMPARABLES 236-240 W Sunset Blvd Unit Mix coe: 9/8/206 price: $,475,000 units: 8 price/unit: $84,375 sf: 3,720 price/sf: $396.5 lot size: 7,823 cap: 4.35% 2 6 + 2+ built: 922 grm: 4.36 2 048 Everett Pl Unit Mix coe: 6/28/6 price: $2,950,000 units: 0 price/unit: $295,000 sf: 8,98 price/sf: $330.79 lot size: 6,26 cap: 4.06% 9 + 2+ built: 962 grm: 5.73 3 96 Edgeware Rd Unit Mix coe: 5/24/206 price: $,25,000 units: 4 price/unit: $28,250 sf: 3,377 price/sf: $333 lot size: 7,909 cap: N/A built: 977 grm: N/A 2 + 2+ 3+2 MARKET COMPARABLES 4 8
SALES COMPARABLES 4 820 N Beaudry Ave Unit Mix coe: 9/8/206 price: $,030,000 units: 3 price/unit: $343,333 sf: 4,24 price/sf: $244.42 lot size: 7,000 cap: 3.8% built: 929 grm: 7.03 2+ 3+.5 4+2.5 5 220 Innes Ave Unit Mix coe: 6/3/206 price: $900,000 units: 4 price/unit: $225,000 sf: 3,6 price/sf: $289 lot size: 7,495 cap: N/A built: 93 grm: N/A 0+ + +.5 3+2 6 343 W Temple St Unit Mix coe: 5/2/206 price: $882,000 units: 2 price/unit: $44,000 sf: 2,000 price/sf: $44 lot size: 4,35 cap: 4.9% built: 2006 grm: 9.0 2 2+.5 MARKET COMPARABLES 4 9
SALES COMPARABLES MAP 236-240 W Sunset Blvd 4 820 N Beaudry Ave 2 3 048 Everette Pl 96 Edgeware Rd 5 6 220 Innes Ave 343 W Temple St 3 5 2 825 N Beaudry Ave Los Angeles, CA 9002 6 4 MARKET COMPARABLES 20
RENT COMPARABLES: MULTI-FAMILY 225 Boston St #07 2 935 ½ Everett St 3 938 White Knoll #8 Type: + Rent: $,600 Type: 2+.5 Rent: $2,895 Type: 2+ Rent: $2,400 SF: 624 Price/SF: $2.56 SF:,000 Price/SF: $2.0 SF: 850 Price/SF: $2.82 RENT COMPARABLES: SINGLE FAMILY RESIDENCE 4 329 Linewood Ave 5 2425 McCready Ave 6 43 N Mountain View Ave Type: 5+4 Rent: $5,500 Type: 5+4 Rent: $5,800 Type: 4+3 Rent: $3,200 SF: 2,766 Price/SF: $.99 SF: 2,790 Price/SF: $2.08 SF:,750 Price/SF: $.82 MARKET COMPARABLES 2
RENT COMPARABLES MAP 225 Boston St. #07 4 329 Linewood Ave 2 3 935 ½ Everett St #2 938 White Knoll Dr. #8 5 6 2425 McCready Ave 43 N Mountain View Ave 5 825 N Beaudry Ave Los Angeles, CA 9002 6 2 3 4 MARKET COMPARABLES 22
825-827 N Beaudry Ave Los Angeles, CA 9002 FINANCIALS ANALYSIS FINANCIALS ANALYSIS 23
PRICING SUMMARY List Price: $,750,000 Price Per Unit: $350,000 Price Per Square Foot: $293.08 Current GPI: $69,240 Current NOI: $34,939 Current Cap Rate: 2.00% Current GRM: 25.27 Market GPI: $58,400 Market NOI: $2,424 Market Cap Rate: 6.94% Market GRM:.05 Approximate Upside in Rents: 29% FINANCIALS ANALYSIS 24
RENT ROLL UNIT NUMBER STATUS UNIT TYPE CURRENT RENT PRO-FORMA LOSS-TO-LEASE 825- occupied + $865.00 $,600.00 ($735) 825-2 occupied + $895.00 $,600.00 ($705) 825-3 occupied 2+ $975.00 $2,200.00 ($,225) 825-4 occupied 2+ $980.00 $2,200.00 ($,220) 827 occupied 5+3.5 $2,000.00 $5,500.00 ($3,500) UNITS OCCUPIED UNITS OCCUPANCY % CURRENT RENT PRO-FORMA LOSS-TO-LEASE 5 5 00.00% $5,75.00 $2,600.00 ($7,385) FINANCIALS ANALYSIS 25
FINANCIAL SUMMARY $,750,000 INVESTMENT SUMMARY SCHEDULED INCOME Down Payment: 00.00% $,750,000 UNIT MIX CURRENT MARKET Year Built: 965 & 983 UNITS BEDS BATHS SF AVERAGE MONTHLY RENT MONTHLY Units: 5 5 3.50 3,63 $2,000 $2,000 $5,500 $5,500 Approx. Lot Size: 6,999 2 2.00 $998 $,955 $2,200 $4,400 Approx. Bldg. GRSF: 5,97 2.00 $880 $,760 $,600 $3,200 Cost per GRSF: $293.08 Cost per Unit: $350,000 Expense / GRSF: $5.59 Expense / Unit: $6,674 Total Scheduled Rent: $5,75 $3,00 CURRENT MARKET Laundry Income: $55 $00 GRM: 25.27.05 CAP: 2.00% 6.94% Gross Monthly Income: $5,770 $3,200 ROI: 2.00% 6.94% GROSS POTENTIAL INCOME: $69,240 $58,400 ANNUAL OPERATING INCOME ESTIMATED ANNUAL EXPENSES CURRENT PRO-FORMA ITEM AMOUNT Gross Potential Income: $69,240 $58,400 Taxes: $20,857 Less Vacancy Reserve Rate: ($2,077) 3.00% * ($4,752) 3.00% Insurance: $2,388 Gross Operating Income: $67,63 $53,648 Utilities: $2,500 Less Expenses: ($32,224) 46.54% * ($32,224) 20.34% Maintenance & Repairs: $2,000 Net Operating Income: $34,938 $2,424 Pest: $200 Less Debt Service: $0 $0 Landscaping & Cleaning: $478 Pre-Tax Cash Flow: $34,938 2.00% ** $2,424 6.94% Misc/Reserves: $,000 Plus Principal Reduction: $0 $0 Trash: $450 Total Return Before Taxes: $34,938 2.00% ** $2,424 6.94% Management: $2,35 * As a percent of Scheduled Gross Income ** As a percent of Down Payment FINANCING INFORMATION Price: $,750,000 Terms: 30 Years Amoritized TOTAL EXPENSES: $32,224 Down Payment: $,750,000 Interest Rate: 3.90% Fixed for 5 years Expense / NRSF: $5.40 Loan Amount: $0 Monthly Payment: $0.00 Expense / Unit: $6,445 FINANCIALS ANALYSIS 26
825-827 N Beaudry Ave Los Angeles, CA 9002 EXCLUSIVELY LISTED BY: Concord Real Estate Services 449 S Beverly Drive, First Floor Beverly Hills, CA 9022 www.concord-re.com BRE No. 093228 Guillermo Ma Senior Vice President Investment T 424 284 4468 E gma@concord-re.com BRE No. 0350503 Berenice Marquez Investment Associate T 424 284 4493 E bmarquez@concord-re.com BRE No. 965005