OFFERING MEMORANDUM Victorian Style Apartment Building + 1 SFR 508 S. UNION AVE., LOS ANGELES, CA 90017 OFFERING MEMORANDUM APPROX. 4,720 SF UNIQUE 2 STORY VICTORIAN STYLE APARTMENT BUILDING + 1 SINGLE FAMILY RESIDENCE ON 6,255 SF LOT. 2 BUILDINGS: TOTALING 7 UNITS - (1) 1+1 (2) 4+2 AND (4) BACHELORS. R4 ZONED: POTENTIAL FOR DEVELOPMENT. THIS AREA IS A WALKER'S PARADISE WITH A SCORE OF 94 & HAS EXCELLENT ACCESS TO LOCAL TRANSPORTATION: LESS THAN A ½ MILE WALK TO THE WESTLAKE/MACARTHUR PARK METRO STATION. THE PROPERTY IS LOCATED IN THE WESTLAKE NEIGHBORHOOD OF LOS ANGELES, ONE OF THE BUSIEST AREAS OF LA: OVER 100,000 PEOPLE RESIDE WITHIN A 1-MILE RADIUS & OVER 550,000 PEOPLE RESIDE WITHIN A 3-MILE RADIUS. David Yashar, ICSC Member Director DYashar@kw.com (310) 724-8043 BRE# 01102638 Omid Saleh OSaleh@kw.com (310) 724-8066 BRE# 01980838 Eric Simonyan ESimonyan@kw.com (310) 724-8066 BRE# 01984661 Keller Williams Realty Westside Phone: (310) 482-2500 1642 Westwood Blvd Suite 300 Los Angeles, CA 90024 www.davidyashar.com Each Office is Independently Owned and Operated
OFFERING MEMORANDUM Confidentiality & Disclaimer 508 S. UNION AVE., LOS ANGELES, CA 90017 All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by L.A. Westside in compliance with all applicable fair housing and equal opportunity laws. PRESENTED BY: KW COMMERCIAL 1642 Westwood Blvd., Suite 300 Los Angeles, CA 90024 DAVID YASHAR Director 310.724.8043 dyashar@kw.com BRE #01102638 We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. www.kwcommercial.com 2
Property Description PROPERTY OVERVIEW KW Commercial is pleased to present this 4,720 SF Victorian Style Apartment building + 1 single family residence in Westlake, Los Angeles. It is located on 6,225 SF R4 zoned lot. The property consists of 2 buildings totaling 7 units. The front building is 2 stories and has 6 total units. The ground floor has a 4 bedroom 2 bathroom unit, which is vacant. The second floor consists of a 1 bedroom 1 bathroom unit & 4 bachelor units, one of which is currently vacant. The bachelor units all have a shared bathroom. The rear building is a 4 bedroom 2 bathroom house which is currently occupied. All tenants are currently on a month to month tenancy. The R4 zoning on the property gives the future owner the ability to develop a multi-level & multi-unit apartment building. (Buyer to do their own due diligence with the City of Los Angeles.) This opportunity is located in one of the busiest areas of Los Angeles will attract an investor or a developer looking to take advantage of the properties R4 zoning. LOCATION OVERVIEW The subject property is located within the Westlake Community of Los Angeles. It is just 5 parcels north of the signalized intersection of Union Ave. & W. 6th St. 6th St. is considered a commercial thoroughfare in Los Angeles with a daily car traffic count of over 25,000 cars per day. This area is considered a walker's paradise with a score of 94. Transit is excellent and convenient with a transit score of 85. It is less than a 3-minute walk to the 6th St./Burlington Bus Stop & 1/2 of a mile from the Westlake/MacArthur Park Metro Station, with stops for the Red & Purple line. It is also nestled between 10, 101, & 110 Freeways. It is located in one of Los Angeles's busiest neighborhood with over 100,000 people residing within a 1-mile radius and over 550,000 people residing within a 3-mile radius. www.kwcommercial.com 3
Income Summary TENANT ANNUAL SCHEDULED INCOME Actual Proforma Gross Rent $112,778 $121,800 TOTALS $112,778 $121,800 ANNUALIZED INCOME Actual Proforma Gross Potential Rent $112,778 $121,800 INVESTMENT SUMMARY Less: Vacancy ($45,600) ($6,090) Price: $1,095,000 Effective Gross Income $67,178 $115,710 Year Built: 1899 Less: Expenses ($40,492) ($42,918) SF (per title) 4,720 Net Operating Income $26,687 $72,792 Price / SF: $231.99 Lot Size (SF): 6,255 Floors: 2 ANNUALIZED EXPENSES Parking: Street Actual Proforma Zoning: LA-R4 Property Taxes $15,330 $15,330 APN: 5153-005-024 Insurance $3,101 $3,101 GRM: 16.30 Water & Sewer $9,462 $9,462 Proforma GRM: 9.46 Electricity $2,220 $2,220 Price / Door: $156,429 Gas $1,320 $1,320 Current Cap Rate: 2.4% Trash $900 $900 Proforma Cap Rate: 6.6% Gardner $1,200 $1,200 Repairs & Maintenance $3,600 $3,600 Management $3,359 $5,786 Total Expenses $40,492 $42,918 Expenses Per RSF $8.58 $9.09 www.kwcommercial.com 4
Rent Roll Rent Roll Suite Tenant Name GLA Occupied Lease Commence Lease Expire Monthly Rent Rent/SF Proforma Monthly Rent Rent/SF Lease Type 508 Vacant 4BD/2BA $3,000.00 $3,000.00 GROSS Apt#5 Occupied 1BD/1BA M/M $901.95 $950.00 GROSS Apt#6* Occupied Bach M/M $653.10 $800.00 GROSS Apt#7* Vacant Bach $800.00 $800.00 GROSS Apt#8* Occupied Bach M/M $633.15 $800.00 GROSS Apt#9* Occupied Bach M/M $745.00 $800.00 GROSS 508.5 Occupied 4BD/2BA M/M $2,665.00 $3,000.00 GROSS Total Square Feet 4,720 $9,398.20 $10,150.00 Note: * Each bachelor units has their own kitchenette, but share a bathroom. (1) SELLER DOES NOT GUARANTEE THE MEASUREMENTS OF EACH UNIT. BUYER IS RESPONSIBLE FOR MEASURING & VERIFYING THE SF FOR EACH/ALL UNITS!!! **DRIVE BY ONLY** www.kwcommercial.com 5
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Aerial & Plat Map www.kwcommercial.com 8
Location Maps www.kwcommercial.com 9
508 S UNION AVE., LOS ANGELES, CA 90017 Retailer Map www.kwcommercial.com 10
Demographics Map POPULATION 1 MILE 2 MILES 3 MILES TOTAL POPULATION 104,383 299,772 565,984 MEDIAN AGE 29.8 32.3 32.5 MEDIAN AGE (MALE) 29.3 31.9 32.0 MEDIAN AGE (FEMALE) 30.5 32.9 33.2 HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES TOTAL HOUSEHOLDS 35,419 108,931 195,225 # OF PERSONS PER HH 2.9 2.8 2.9 AVERAGE HH INCOME $35,489 $42,157 $44,497 AVERAGE HOUSE VALUE $487,050 $560,137 $593,738 RACE 1 MILE 2 MILES 3 MILES % WHITE 36.7% 36.1% 35.1% % BLACK 4.7% 5.2% 6.5% % ASIAN 14.3% 20.9% 21.6% % HAWAIIAN 0.2% 0.3% 0.3% % INDIAN 1.7% 1.0% 0.7% % OTHER 41.3% 34.9% 34.0% ETHNICITY 1 MILE 2 MILES 3 MILES % HISPANIC 75.1% 63.9% 59.1% * Demographic data derived from 2010 US Census www.kwcommercial.com 11