Santa Rosalia 4525 Santa Rosalia Drive Los Angeles, CA PROPERTY HIGHLIGHTS Michael Salerno Executive Vice President (310) 202-9166 michaels@mdrealtycorp.com 3627 Motor Avenue Los Angeles, CA 90034 29 units Baldwin Hills Excellent unit mix, 18-1bd & 11-2bd units Below market rents - huge upside potential Gated entry, individually metered for gas and electricity Close to the new Kaiser Permanente facility, Baldwin Hills/Crenshaw Plaza, Expo Line, shops and restaurants. www.mdrealtycorp.com
PROPERTY DESCRIPTION 4525 Santa Rosalia Drive 29 units in prime Baldwin Hills. Excellent unit mix, 18-1bd and 11-2bd units. Below market rents with huge upside potential. Gated entry and parking. Individually metered for gas and electricity. New rod Iron fencing in the back parking area, copper plumbing and holding tank replaced in 2012. Located in the desirable and rapidly improving Baldwin Hills/Crenshaw neighborhood of Los Angeles, CA. The building is close to the Baldwin Hills Crenshaw Plaza, an existing shopping center with approved plans to be redeveloped into 961 residential units, 300,000 square feet of retail and restaurant space, a 10-story office building, and a 400-room hotel. Also within blocks is the brand new Kaiser Permanente facility. The City of Los Angeles is also heavily invested in improving this neighborhood, with the upcoming Crenshaw/LAX transit line extension, an 8.5-mile rail line connecting the Metro Blue Line with the Metro Green Line, including direct access to Los Angeles International Airport. Baldwin Hills is booming w/ development making this an excellent opportunity to benefit from surrounding growth. page - 2
PROPERTY PHOTOS 4525 Santa Rosalia Drive page - 3
INVESTMENT DETAILS ANALYSIS Analysis Date March 2018 PROPERTY Property Property Address Santa Rosalia 4525 Santa Rosalia Drive Los Angeles, CA 90008 Year Built 1956 PURCHASE INFORMATION Property Type MultiFamily Purchase Price $5,800,000 Units 29 Total Rentable Sq. Ft. 26,300 FINANCIAL INFORMATION All Cash LOANS Type Debt Term Amortization Rate Payment LO Costs All Cash INCOME & EXPENSES Gross Operating Income $359,092 Monthly GOI $29,924 Total Annual Expenses ($152,183) Monthly Expenses ($12,682) page - 4
EXECUTIVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs $5,800,000 Investment - Cash $0 Investment Information Purchase Price $5,800,000 Price per Unit $200,000 Price per Sq. Ft. $220.53 Income per Unit $12,765 Expenses per Unit ($5,248) Income, Expenses & Cash Flow Gross Scheduled Income $370,175 Total Vacancy and Credits ($11,084) Operating Expenses ($152,183) Net Operating Income $206,909 Debt Service $0 Cash Flow Before Taxes $206,909 Financial Indicators Debt Coverage Ratio N/A Capitalization Rate 3.57% Gross Rent Multiplier 15.67 Gross Income / Square Feet $14.08 Gross Expenses / Square Feet ($5.79) Operating Expense Ratio 42.38% page - 5
PRO FORMA SUMMARY INCOME Description Actual Per Unit Market Per Unit Gross Potential Rent $369,455 $12,740 $457,200 $15,766 Less: Vacancy ($11,084) ($382) ($13,716) ($473) Misc. Income $720 $25 $8,640 $298 Effective Gross Income $359,092 $12,382 $452,124 $15,590 OPERATING EXPENSES Description Actual Per Unit Market Per Unit Building Insurance $10,143 $350 $10,143 $350 Grounds Maintenance $2,160 $74 $2,160 $74 Maintenance $15,980 $551 $15,980 $551 Management Fees $13,200 $455 $13,200 $455 Misc $2,500 $86 $2,500 $86 Telephone $1,294 $45 $1,294 $45 Taxes - Real Estate $69,600 $2,400 $69,600 $2,400 Trash Removal $6,175 $213 $6,175 $213 Security Service $1,008 $35 $1,008 $35 Utility - Electricity $24,780 $854 $24,780 $854 Utility - Gas $5,343 $184 $5,343 $184 Total Expenses ($152,183) ($5,248) ($152,183) ($5,248) NET OPERATING INCOME $206,909 $7,135 $299,941 $10,343 page - 6
PRO FORMA SUMMARY UNIT MIX & MONTHLY SCHEDULED Type Units Actual Total Market Total TOTALS 29 $30,788 $38,100 INVESTMENT SUMMARY Price: $5,800,000 Year Built: 1956 Units: 29 Price/Unit: $200,000 RSF: 26,300 Price/RSF: $220.53 Lot Size: 27,526 sf Floors: 2 Parking Spaces: 17 APN: 5030-012-005 Cap Rate: 3.57% Market Cap Rate: 5.17% GRM: 15.67 Market GRM: 12.45 ANNUALIZED INCOME Description Actual Market Gross Potential Rent $369,455 $457,200 Less: Vacancy ($11,084) ($13,716) Misc. Income $720 $8,640 Effective Gross Income $359,092 $452,124 Less: Expenses ($152,183) ($152,183) Net Operating Income $206,909 $299,941 ANNUALIZED EXPENSES Description Actual Market Building Insurance $10,143 $10,143 Grounds Maintenance $2,160 $2,160 Maintenance $15,980 $15,980 Management Fees $13,200 $13,200 Misc $2,500 $2,500 Telephone $1,294 $1,294 Taxes - Real Estate $69,600 $69,600 Trash Removal $6,175 $6,175 Security Service $1,008 $1,008 Utility - Electricity $24,780 $24,780 Utility - Gas $5,343 $5,343 Total Expenses $152,183 $152,183 Expenses Per RSF $5.79 $5.79 Expenses Per Unit $5,248 $5,248 page - 7
UNIT MIX REPORT Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 1 2+2 0 $1,040 $1,040 $1,500 $1,500 1 2+2 0 $1,030 $1,030 $1,500 $1,500 1 1+1 0 $950 $950 $1,200 $1,200 1 2+1 0 $1,030 $1,030 $1,500 $1,500 1 2+1 0 $1,391 $1,391 $1,500 $1,500 1 2+1 0 $1,391 $1,391 $1,500 $1,500 1 1+1 0 $955 $955 $1,200 $1,200 1 1+1 0 $1,007 $1,007 $1,200 $1,200 1 1+1 0 $955 $955 $1,200 $1,200 1 1+1 0 $1,100 $1,100 $1,200 $1,200 1 1+1 0 $1,082 $1,082 $1,200 $1,200 1 1+1 0 $901 $901 $1,200 $1,200 1 1+1 0 $1,100 $1,100 $1,200 $1,200 1 1+1 0 $955 $955 $1,200 $1,200 1 1+1 0 $1,082 $1,082 $1,200 $1,200 1 1+1 0 $1,050 $1,050 $1,200 $1,200 1 1+1 0 $1,200 $1,200 $1,200 $1,200 1 2+2 0 $1,000 $1,000 $1,500 $1,500 1 2+2 0 $1,038 $1,038 $1,500 $1,500 1 1+1 0 $901 $901 $1,200 $1,200 1 2+1 0 $1,500 $1,500 $1,500 $1,500 1 1+1 0 $873 $873 $1,200 $1,200 1 1+1 0 $879 $879 $1,200 $1,200 1 1+1 0 $932 $932 $1,200 $1,200 1 1+1 0 $1,128 $1,128 $1,200 $1,200 1 2+2 0 $1,113 $1,113 $1,500 $1,500 1 2+2 0 $1,201 $1,201 $1,500 $1,500 1 2+2 0 $1,050 $1,050 $1,500 $1,500 1 1+1 0 $955 $955 $1,200 $1,200 29 0 $30,788 $38,100 page - 8
MAPS AND AERIALS Santa Rosalia 4525 Santa Rosalia Drive Los Angeles, CA 90008 page - 9
LOCATION MAP page - 10
AERIAL MAP page - 11
DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile Male 14,773 (44.45 %) 165,000 (46.94 %) 556,115 (48.66 %) Female 18,465 (55.55 %) 186,517 (53.06 %) 586,799 (51.34 %) Total Population 33,238 351,517 1,142,914 Age Breakdown 1 Mile 3 Mile 5 Mile Ages 0-4 1,940 (5.84 %) 20,916 (5.95 %) 66,061 (5.78 %) Ages 5-9 2,365 (7.12 %) 24,750 (7.04 %) 77,312 (6.76 %) Ages 10-14 2,254 (6.78 %) 22,655 (6.44 %) 70,001 (6.76 %) Ages 15-19 2,259 (6.80 %) 22,393 (6.37 %) 68,129 (5.96 %) Ages 20-24 2,297 (6.91 %) 24,078 (6.85 %) 73,768 (6.45 %) Ages 25-29 2,246 (6.76 %) 25,023 (7.12 %) 79,224 (6.93 %) Ages 30-34 2,166 (6.52 %) 25,048 (7.13 %) 84,019 (7.35 %) Ages 35-39 2,125 (6.39 %) 25,261 (7.19 %) 89,194 (7.80 %) Ages 40-44 2,181 (6.56 %) 25,850 (7.35 %) 92,161 (8.06 %) Ages 45-49 2,235 (6.72 %) 26,254 (7.47 %) 91,024 (7.96 %) Ages 50-54 2,179 (6.56 %) 24,673 (7.02 %) 82,060 (7.18 %) Ages 55-59 2,024 (6.09 %) 22,031 (6.27 %) 70,900 (6.20 %) Ages 60-64 1,742 (5.24 %) 18,276 (5.20 %) 57,840 (5.06 %) Ages 65-69 1,427 (4.29 %) 14,197 (4.04 %) 44,664 (3.91 %) Ages 70-74 1,105 (3.32 %) 10,318 (2.94 %) 32,563 (2.85 %) Ages 75-79 867 (2.61 %) 7,080 (2.01 %) 22,726 (1.99 %) Ages 80-84 636 (1.91 %) 4,553 (1.30 %) 15,053 (1.32 %) Ages 85+ 1,190 (3.58 %) 8,161 (2.32 %) 26,215 (2.29 %) page - 12
DEMOGRAPHICS Household Income 1 Mile 3 Mile 5 Mile Median Income $34,594 $42,320 $43,590 Less than $10,000 1,509 11,486 38,571 $10,000 -$14,999 1,677 10,883 33,754 $15,000 - $19,999 926 8,046 27,815 $20,000 -$24,999 1,176 8,376 26,357 $25,000 - $29,999 990 7,573 24,258 $30,000 - $34,999 781 7,284 24,189 $35,000 - $39,999 611 6,918 21,479 $40,000 - $44,999 750 6,464 20,299 $45,000 - $49,999 446 4,938 16,817 $50,000 - $59,999 1,096 9,630 30,828 $60,000 - $74,999 912 11,399 37,192 $75,000 - $99,999 1,284 11,974 38,419 $100,000 - $124,999 553 6,707 25,124 $125,000 - $149,999 317 3,991 14,191 $150,000 - $199,999 335 4,490 16,455 Greater than $200,000 117 3,351 18,255 Housing 1 Mile 3 Mile 5 Mile Housing Units 15,328 137,135 456,566 Occupied Units 14,138 128,128 425,149 Owner Occupied Units 4,055 46,992 125,876 Renter Occupied Units 10,083 81,136 299,273 Vacant Units 1,190 9,007 31,417 Race Demographics 1 Mile 3 Mile 5 Mile Population Non Hispanic White 4,065 88,980 411,867 Population Black 19,172 127,196 235,568 Population Am In/Ak Nat 67 783 2,568 page - 13