OFFERING MEMORANDUM 10851 MOORPARK STREET STUDIO CITY, CALIFORNIA 1
2
10851 MOORPARK STREET STUDIO CITY, CALIFORNIA EXCLUSIVELY LISTED BY BRANDON DICKER Associate Multifamily Direct +1 818 923 6118 Mobile +1 818 523 1754 brandon.dicker@matthews.com License No. 01958894 DANIEL WITHERS Senior Vice President Multifamily Direct +1 818 923 6107 Mobile +1 310 365 5054 daniel.withers@matthews.com License No. 01325901 I II III IV PROPERTY OVERVIEW AREA OVERVIEW COMPARABLES FINANCIAL OVERVIEW
4 I SECTION PROPERTY OVERVIEW OPPORTUNITY 10851 Moorpark Street offers investors with a great opportunity to take advantage of a well maintained multifamily investment property in Studio City. Built in 1964, the building offers tenants with secured door entry, wall unit ACs, on-site laundry, covered parking, and lush courtyard. The building, which is located between Lankershim Boulevard and Vineland Avenue, is made up of ten units including one bachelor unit, one single unit, seven onebedroom units, and one two bedroom unit. DESCRIPTION With direct access to the 101, 134, and 170 freeways, residents are a quick drive from shopping, dining, and entertainment that is offered in North Hollywood, Studio City, and Toluca Lake. 10851 Moorpark Street is truly a unique property in one of the most exciting rental markets in Los Angeles.
5
II SECTION AREA OVERVIEW MAJOR EMPLOYERS LOS ANGELES MSA As the second largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California s original 27 counties, is one of the nation s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California s population. The area continues to grow, especially given the vigorous residential development in downtown LA. Famously known for a heavy entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United States. The Los Angeles-Orange County metro area alone has an enormous economy with an estimated $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas. ECONOMY The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the Movie Capital of the United States due to the region s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism. 6 6
DEMOGRAPHICS POPULATION 1-MILE 3-MILE 5-MILE 2022 Projection 35,663 220,315 651,770 2017 Estimate 33,795 210,621 626,983 2010 Census 31,505 199,109 598,671 Growth 2017-2022 5.53% 4.60% 3.95% HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2022 Projection 19,044 98,338 285,055 2017 Estimate 18,006 93,615 273,249 2010 Census 16,717 87,824 259,292 Growth 2017-2022 5.76% 5.04% 4.32% INCOME 1-MILE 3-MILE 5-MILE 2017 Average Household Income 2017 Median Household Income $91,741 $101,647 $94,147 $66,984 $65,594 $59,492 7
STUDIO CITY Studio City is located in the city of Los Angeles, California, in the San Fernando Valley. Just over the hill from the Hollywood bustle, Studio City is a quaint neighborhood with tree-lined residential streets and trendy dining. Lively Ventura Boulevard offers several classic sushi houses, plus small-plates spots and stylish gastropubs. Locals hit Wilacre Park for woodsy hiking trails with panoramic Valley views. The CBS Studio Center dates back to silent film era and gives the neighborhood its name. Studio City is known for its thriving local community with a small town feel. Favorite annual Studio City events are the Fourth of July Fireworks Festival, held on the CBS Studio Center lot and put on by the Studio City Chamber of Commerce and the Studio, the weekly Farmers Market, one of the premier markets in Los Angeles, the Winter Family Festival, and the Luminaria Festival. DISTANCE TO Universal Studios > 1.4 Miles Warner Bros. Studios > 2.1 Miles Hollywood Bowl > 4 Miles Hollywood Sign > 4.5 Miles 8
#1 MOST POPULATED COUNTY IN THE U.S. (L.A. COUNTY) 63% OF SAN FERNANDO VALLEY WORKERS ARE IN WHITE-COLLAR POSITIONS 37.6 SAN FERNANDO VALLEY The San Fernando Valley features a strong and well-diversified economy. The Valley is home to numerous large employers, including some 50,000 businesses employing over 700,000 workers, the most wellknown of which are involved in motion pictures, recording, and television production and the medical and biotech industries. Among the top entertainment companies in the San Fernando Valley are Disney, Warner Brothers, NBC, and DreamWorks. Other important segments of the local economy include financial and health services as well as aerospace, biotech, and high-tech manufacturing, with BlueShield, Amgen and Kaiser to name a few. MEDIAN AGE IN THE VALLEY 1.7M 332.6k $69.1k San Fernando Valley s population is forecast to grow 4.2% over the next 5 years 31% of residents 25 years and older hold a bachelor s degree or higher, compared to 29% nationally The Valley s median household income is projected to reach $69,123 by 2022, up 10.4% from 2017 9
10 III SECTION COMPARABLES
11 RENT COMPARABLES ADDRESS Unit Type Rent 10851 MOORPARK STREET Bachelor $763 10851 MOORPARK STREET Single $744 4258 CAHUENGA BLVD Studio $1,225 ADDRESS Unit Type Rent 10851 MOORPARK STREET 1+1 $1,177 4418 ENSIGN STREET 1+1 $1,700 4444 ENSIGN AVENUE 1+1 $1,698 10721 BLOOMFIELD STREET 1+1 $1,600 10711 WOODBRIDGE STREET 1+1 $2,025 - $2,150 10314 MOORPARK STREET 1+1 $1,550 ADDRESS Unit Type Rent 10851 MOORPARK STREET 2+1 $1,475 10942 MOORPARK STREET 2+1 $1,900
12 SALES COMPARABLES Address 10851 Moorpark Street Studio City, CA 91602 12301-12319 Magnolia Blvd Valley Village 11012 Fruitland Dr Studio City 12642 Moorpark St Studio City 4824 Satsuma Ave North Hollywood 10311 Riverside Dr Toluca Lake 11246 Otsego St North Hollywood 4909 Coldwater Canyon Ave Sherman Oaks 11135-11137 Camarillo St North Hollywood 10867 Fruitland Dr Studio City, CA 4173 Fair Ave Studio City, CA Averages
13 Yr Built Sq Ft Price Per Unit Per Foot Cap Rate GRM Units Bachelor Studio Mix #-1Bd #-2Bd #3-Bd 1964 6,779 $2,450,000 $245,000 $361.41 3.13% 18.08 10 1 1 7 1-1942 8,190 $4,200,000 $350,000 $512.82 - - 12-1 - - - 1964 7,834 $3,118,000 $346,444 $398.01 3.5% 14 9-1 3 4 1 1962 9,600 $2,300,000 $328,571 $239.58 3.51% 16.88 7 - - - 6-1963 11,336 $3,160,000 $316,000 $278.76-15.54 10 - - 4 6-1971 42,309 $11,900,000 $305,128 $281.26 3.45% 15.85 39 - - - 12-1957 3,540 $1,800,000 $300,000 $508.47 - - 6 - - 6 - - 1952 5,412 $1,550,000 $258,333 $286.40 2.42% 19.97 6-8 4 2-1950 5,700 $2,000,000 $250,000 $350.88 3.01% 13.72 8-1 - - - 1936 3,091 $1,250,000 $250,000 $404.39 3.00% 22 5-5 0 0 0 1975 5,371 $1,782,000 $356,400 $331.78 3.78% 18 5-0 5 0 0 1957 9804 $3,132,273 $299,398 $349.79 3.31% 16.95 10
IV SECTION FINANCIAL OVERVIEW INVESTMENT SUMMARY Offering Price: $2,450,000 Number of Units: 10 Property: 10851 Moorpark Street Year Built: 1964 Studio City, CA 91602 APN: 2423-007-020 Price Per Unit: $245,000 Gross Sq. Ft.: 6,779 Price Per S.F.: $361.41 Average S.F. Per Unit: 678 Cap (current / market): 3.13% / 5.40% Lot Size 0.21 GRM (current / market): 18.08 / 12.54 UNIT MIX Total Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent 1 Single 10% $744 $744 $1,250 $1,250 7 1+1 70% $1,177 $8,236 $1,700 $11,900 1 2+1 10% $1,475 $1,475 $1,900 $1,900 1 Bachelor 10% $763 $763 $1,150 $1,150 Scheduled Monthly Rent: $11,218 $16,200 Scheduled Yearly Rent: $134,615 $194,400 14
15 ANNUALIZED OPERATING DATA Current Market Scheduled Gross Income: $134,615 $194,400 44% Upside Less Vacancy Reserve: 3.0% $4,038 3.0% $5,832 * Laundry Income: $900 $900 Gross Operating Income: $131,476 $189,468 Expenses: 40.8% $54,901 29.4% $57,220 * Net Operating Income: $76,576 $132,248 * As a percent of Scheduled Gross Income PRO FORMA ANNUAL OPERATING EXPENSES Current Per Unit % of SGI Taxes 1.193% x Sale Price $29,229 $2,923 21.7% Off-Site Management 4.0% x GOI $5,259 $526 3.9% Insurance $0.33 x GSF $2,232 $223 1.7% Trash / Pest Control $250 x Units $2,500 $250 1.9% Repairs & Maintenance $600 x Units $6,000 $600 4.5% Utilities $600 x Units $6,000 $600 4.5% Gardener $168 x Units $1,680 $168 1.2% Reserves $200 x Units $2,000 $200 1.5% Total Expenses $54,901 $5,490 40.8% Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins: $33,961 $3,396 25.2% Total Expense without Taxes $25,671 $2,567 19.1%
16 RENT ROLL Unit Mix Rent Square Feet Market Rent 1 1+1 $1,275 635 $1,700 2 1+1 $859 680 $1,700 3 Bachelor $763 400 $1,150 4 1+1 $1,385 600 $1,700 5 1+1 $1,171 600 $1,700 6 1+1 $1,495 635 $1,700 7 2+1 $1,475 800 $2,700 8 Single $744 550 $1,250 9 1+1 $850 600 $1,700 10 1+1 $1,202 600 $1,700 Totals $11,218 $17,000 Averages $1,122 $1,700 **Current Rents will be effective as of January 2018
17
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of 10851 Moorpark Street, Studio City, CA ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
DANIEL WITHERS Senior Vice President Multifamily Direct +1 818 923 6107 Mobile +1 310 365 5054 daniel.withers@matthews.com License No. 01325901 BRANDON DICKER Associate Multifamily Direct +1 818 923 6118 Mobile +1 818 523 1754 brandon.dicker@matthews.com License No. 01958894 10851 MOORPARK STREET STUDIO CITY, CALIFORNIA 19