6125 Horner Street, Los Angeles, CA 90035 A 12-Unit Apartment Opportunity Tom Jonsson Multi-Family Investment Sales Managing Principal Office: (310) 593-9866 Mobile: (310) 966-0122 Tom.Jonsson@cbcadvisors.com License: CA # 01755842 William James Multi-Family Investment Sales Director Office: (310) 593-9867 Mobile: (310) 600-9858 William.James@cbcadvisors.com License: CA # 01734419
CONFIDENTIALITY AGREEMENT The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party intended to be receiving it from CBC Advisors and should not be made available to any other person or entity without the written consent of CBC Advisors. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation nor shall any information contained herein be relied upon in connection with such due diligence. CBC Advisors has not made any investigation, and makes no warranty or representation, with respect to any aspect of the subject property or business, including but not limited to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, CBC Advisors has not verified, and will not verify, any of the information contained herein, nor has CBC Advisors conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein and nothing contained herein is intended to be relied upon in any manner in connection with the purchase of the subject property. NON-ENDORSEMENT NOTICE CBC Advisors is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of CBC Advisors, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of CBC Advisors, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
6125 Horner Street, Los Angeles, CA 90035 SECTIONS I PROPERTY DESCRIPTION II FINANCIAL ANALYSIS
I. PROPERTY DESCRIPTION
INVESTMENT OVERVIEW 6125 Horner Street is a 12-unit apartment building well located in Los Angeles, CA. This stucco and wood-frame construction apartment building was built in 1959 and contains an excellent unit mix consisting of five (5) one-bedroom/one-bathroom units, three (3) one-bedroom/one-bathroom units with balconies, two (2) two-bedroom/two-bathroom units with balconies & two (2) three bedroom/two-bathroom units with balconies. The property also has one non-conforming storage/one-bedroom unit that will be delivered vacant. With its close proximity to both Pico & La Cienega this property is centrally located near schools, shopping, entertainment and many other draws of Los Angeles, including Robertson Boulevard, Beverly Hills and The Grove. In addition, due to the property s convenient access to freeways and bus lines, the area serves as a strong draw from a diversified tenant base. As a result, owners find that they have historically operated with low vacancies rates and strong rent growth. 6125 Horner is attractive for many investors due to its aforementioned stable return and long term growth in both cash flow and value.»» Excellent Unit Mix with Large Units & Rental Upsides»» Great Location Close to Pico & La Cienega Boulevard»» Some Units Have Balconies»» Secure Building; On-Site Parking & Laundry
PROPERTY INFORMATION Property Address Assessor s Parcel Number 5068-005-017 Land Use Apartments Buildings 1 Stories 3 Zoning LARD1.5 Year Built 1959 SITE DESCRIPTION Units 12 Rentable Square Feet 10,466 Lot Size (SF) 10,215 Parking 12 Parking Spaces (8 of which are tandem) UTILITIES Water Master Metered - LADWP Sewer Master Metered - LADWP Electric Separately Metered - LADWP Gas Separately Metered - The Gas Company CONSTRUCTION Framing Exterior Roof MECHANICAL Laundry Wood Stucco Slight Pitch Common Area *Property is subject of City of Los Angeles Soft Story Retrofit Ordinance.
PROPERTY PHOTOS
PROPERTY PHOTOS
LOCATION MAP REGIONAL MAP
AERIAL VIEW
II. FINANCIAL ANALYSIS
RENT ROLL CURRENT MARKET Unit No. Status Unit Type Monthly Rent Annual Rent Monthly Rent Annual Rent Move In 1 Occupied 3 Bed 2 Bath + Balcony $2,030 $24,358 $3,400 $40,800 6/1/2011 2 Occupied 1 Bed 1 Bath $1,695 $20,340 $2,000 $24,000 4/13/2017 3 Occupied 1 Bed 1 Bath $1,078 $12,938 $2,000 $24,000 4/1/2011 4 Occupied 1 Bed 1 Bath + Balcony $1,750 $21,000 $2,050 $24,600 9/20/2017 5 Occupied 2 Bed 2 Bath + Balcony $1,814 $21,769 $3,000 $27,600 3/25/2013 6 Occupied 1 Bed 1 Bath + Balcony $1,849 $22,188 $2,050 $24,600 9/1/2017 7 Occupied 3 Bed 2 Bath + Balcony $1,603 $19,237 $3,400 $40,800 6/1/1983 8 Occupied 1 Bed 1 Bath $1,506 $18,077 $2,000 $24,000 12/13/2013 9 Occupied 1 Bed 1 Bath $1,849 $22,188 $2,000 $24,000 9/28/2017 10 Occupied 1 Bed 1 Bath + Balcony $1,849 $22,188 $2,050 $24,600 9/5/2017 11 Occupied 2 Bed 2 Bath + Balcony $1,507 $18,084 $3,000 $27,600 10/18/1999 12 Occupied 1 Bed 1 Bath + Balcony $1,251 $15,012 $2,050 $24,600 4/1/2004 TOTAL $19,782 $237,384 $29,000 $348,000 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 2018 CBC Advisors
INCOME & EXPENSE Total Number of Units: 12 Total Rentable area: 10,466 SF Income Current Per Unit Pro Forma Per Unit Scheduled Rent Income $237,384 $19,782 $348,000 $29,000 Other Income $1,000 $83 $1,000 $83 GROSS POTENTIAL INCOME $238,384 $19,865 $349,000 $29,083 Vacancy/Collection Allowance (GPR) 3.0% / $7,122 $594 5.0% / $17,400 $1,450 EFFECTIVE GROSS INCOME $231,262 $19,272 $331,600 $27,633 Expenses Taxes (1.25%) $56,188 $4,682 $56,188 $4,682 Insurance ($0.45/sq. ft. ) $4,710 $392 $4,710 $392 Utilities - LADWP & SoCalGas (2017) $5,761 $480 $5,761 $480 Repairs & Maintenance ($500/Unit) $6,000 $500 $6,000 $500 Management Fee (5% of EGI) $11,563 $964 $16,580 $1,382 Cleaning/Janitorial ($100/month) $1,200 $100 $1,200 $100 Trash ($260.02/month) $3,120 $260 $3,120 $260 Gardener ($100/month) $1,200 $100 $1,200 $100 Pest Control (Estimated) $500 $42 $500 $42 Miscelleanous (Intercom, License) $2,000 $167 $2,000 $167 Reserves & Replacements ($200/unit) $2,400 $200 $2,400 $200 TOTAL EXPENSES $92,241 $97,258 Expenses per SF $8.81 $9.29 Expenses per Unit $7,687 $8,105 % of EGI 39.9% 29.3% NET OPERATING INCOME $139,021 $11,585 $234,342 $19,529 NOTES: Some Expenses Are Estimated *Property is subject of City of Los Angeles Soft Story Retrofit Ordinance.
FINANCIAL SUMMARY Price $4,495,000 Down 56.5% $2,539,675 Current Cap 3.09% Pro Forma Cap 5.21% Price/Unit $374,583 Price/SF $429.49 Current GRM 18.94 Pro Forma GRM 12.92 Ownership Fee Simple Property Information Address 6125 Horner Street Los Angeles, CA 90035 No. of Units 12 Year Built 1959 Lot Size (SF) 10,215 Lot Size (AC) 0.23 Net Rentable SF: 10,466 APN 5068-005-017 Financing Loan Amount $1,955,325 Interest Rate 4.25% Monthly Payment $9,619.02 Loan-to-Value 43.5% Amortization (Years) 30 Debt Service Coverage Ratio 1.20 Term 30 Years I/O Period (Years) 5 Years Fixed Annualized Income & Expense Current Pro Forma INCOME Scheduled Rent Income $237,384 $348,000 Other Income $1,000 $1,000 Scheduled Gross Income $238,384 $349,000 Less: Vacancy/Other Deductions 3.0% $7,122 5.0% $17,400 Effective Gross Income $231,262 $331,600 Less: Operating Expenses 39.9% $92,241 29.3% $97,258 Net Operating Income $139,021 $234,342 Debt Service ($115,428) ($115,428) Pre-Tax Cash Flow 0.93% $23,593 4.68% $118,914 Principal Reduction ($32,964) ($32,964) Total Return Before Taxes 2.23% $56,557 5.98% $151,878 Annualized Expenses Operating Expenses Current Pro Forma Taxes (1.25%) $56,188 $56,188 Insurance ($0.45/sq. ft. ) $4,710 $4,710 Utilities - LADWP & SoCalGas (2017) $5,761 $5,761 Repairs & Maintenance ($500/Unit) $6,000 $6,000 Management Fee (5% of EGI) $11,563 $16,580 Cleaning/Janitorial Services ($100/month) $1,200 $1,200 Trash ($260.02/month) $3,120 $3,120 Gardener ($100/month) $1,200 $1,200 Pest Control (Estimated) $500 $500 Miscelleanous (Intercom, License) $2,000 $2,000 Reserves & Replacements ($200/unit) $2,400 $2,400 Total Expenses: $92,241 $97,258 Total Expenses per Unit: $7,687 $8,105 Total Expenses per Sq. Ft.: $8.81 $9.29 CURRENT MARKET Unit Mix # of Units Average Rent Monthly Monthly Average Rent Income Income 1 Bed 1 Bath 4 $1,532 $6,129 $2,000 $8,000 1 Bed 1 Bath + Balcony 4 $1,675 $6,699 $2,050 $8,200 2 Bed 2 Bath + Balcony 2 $1,661 $3,321 $3,000 $6,000 3 Bed 2 Bath + Balcony 2 $1,817 $3,633 $3,400 $6,800 Current Occupancy: 100% Annual Current: $237,384 Annual Market: $348,000 *Property is subject of City of Los Angeles Soft Story Retrofit Ordinance.
Tom Jonsson Multi-Family Investment Sales Managing Principal Office: (310) 593-9866 Mobile: (310) 966-0122 Tom.Jonsson@cbcadvisors.com License: CA # 01755842 William James Multi-Family Investment Sales Director Office: (310) 593-9867 Mobile: (310) 600-9858 William.James@cbcadvisors.com License: CA # 01734419 300 North Continental Boulevard, Suite 100 El Segundo, CA 90245