700-02 S Louise Street Glendale, CA 91205 O F F E R I N G M E M O R A N D U M
2 APARTMENT NAME
700-02 S Louise Street Glendale, CA 91205 EXCLUSIVELY LISTED BY MICHAEL ASTORIAN ASSOCIATE MULTIFAMILY Direct +1 818 923 6123 Mobile +1 818 926 8889 Michael.Astorian@matthews.com License No. 01974130 DAVID HARRINGTON EVP & NATIONAL DIRECTOR MULTIFAMILY Direct +1 310 295 1170 Mobile +1 310 497 5590 David.Harrington@matthews.com License No. 01320460 CONTENTS 4 I Property Overview 6 I Area Overview 12 I Financial Overview
PROPERTY OVERVIEW OPPORTUNITY Prime Glendale Location: Mariposa Neighborhood in Glendale Dense Rental Demand 30,026 People Per Square Mile 50% Rental Upside To Capture Half a Mile Away From the Americana at Brand & Maple Park Opportunity for an Investor to Add Value by Repositioning a Well- Located Investment Great Unit Mix of 2BR/1BA Units 4 700-702 S LOUISE STREET
PROPERTY DESCRIPTION 6 Units Built in 1954 Unit Mix (6) 2BR/1BA Units No Rent control Over 50% Rental Upside 6 Parking Spaces + Ample Street Parking Units Average Approximately 900+ SF Each 900+ SF UNITS 30,026 PEOPLE PER SQUARE MILE 50% RENT UPSIDE GLENDALE, CA 91205 5
AREA OVERVIEW 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 heavily 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 Sates. The Los Angeles-Orange County metro area alone has an enormous economy with an estimate $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. 6 700-702 S LOUISE STREET
POPULATION AT A GLANCE 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. TOP EMPLOYERS 18.7 Million POPULATION $55,509 MEDIAN HOUSEHOLD INCOME DEMOGRAPHICS 4.4% UNEMPLOYMENT RATE POPULATION 1-MILE 3-MILE 5-MILE 2000 Census 62,431 238,902 642,359 2010 Census 57,914 231,926 617,795 2017 Estimate 60,054 241,641 643,204 2022 Projection 62,051 250,479 666,142 POPULATION GROWTH 1-MILE 3-MILE 5-MILE % Change: 2000 to 2010-7.24-2.92-3.82 % Change: 2010 to 2017 3.69 4.19 4.11 % Change: 2017 to 2022 3.33 3.66 3.57 HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2010 Census 21,760 87,875 233,097 2000 Census 21,623 87,835 231,766 2017 Estimate 22,906 91,956 244,142 2022 Projection 23,840 95,588 253,681 INCOME 1-MILE 3-MILE 5-MILE 2017 Avg. Household Income $59,289 $83,359 $81,851 GLENDALE, CA 91205 7
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ATTRACTIONS GLENDALE Bisected by the Verdugo Mountains, Glendale is a city that lies on the southeastern end of the San Fernando Valley. It is a suburb of the Greater Los Angeles Area just 15 minutes from downtown Los Angeles. At the center of some of Los Angeles up and coming neighborhoods, Glendale is the perfect home base for enjoying the best of the City of Angels. There are plenty of job opportunities in Glendale as the city houses the headquarters of Nestlé US, Americas United Bank, and International House of Pancakes. The Grand Central Business Centre is home to Disney s Consumer Products, Disney Too Studios, Disney Interactive, The Muppets Studio, and Marvel Animation Studios. 3 rd Largest City in LA County 8 Miles North of Downtown Los Angeles Americana at Brand Located less than a mile from the subject property, the Americana at Brand is the ultimate shopping, dining, and entertainment complex. The Americana at Brand offers everything from larger stores including Nordstrom and Bloomingdale s to carefully chosen unique boutiques. Glendale Galleria As the go to shopping destination, the Glendale Galleria is a large shopping center with a unique feel and a distinctive variety of stores. It is the fourth largest mall in L A County. In 2016, the Glendale Galleria saw 30 million visitors alone. Outdoor Recreation With over 50 public parks within the city limits, Glendale has plenty of natures settings in which residents can partake in outdoor recreational activities. Local hikers frequent Deukmejian Wilderness Park - one of the most gorgeous and sparsely visited parks in L A county. The trails go through waterfalls, creeks, and stunning vistas that can feel worlds away from Los Angeles. MARIPOSA NEIGHBORHOOD Situated at the east end of the San Fernando Valley and surrounded by mountainous scenery, Mariposa sits in Glendale, a California city with one of the largest Armenian communities in America. The neighborhood, which lies tucked away next to downtown Glendale, has a culturally diverse mix of working professionals and families. The people who live here enjoy sunny weather much of the year, as well as convenient proximity to amenities. Though locals have no trouble finding what they need within Glendale s borders, they also have easy access to nearby Los Angeles, making Mariposa an ideal location for commuters as well as those who like to explore. GLENDALE, CA 91205 9
TRANSPORTATION LARRY ZARIAN TRANSPORTATION CENTER The Glendale Amtrak/Metrolink Station, referred to as the Larry Zarian Transportation Center, is an Amtrak and Metrolink rail station. The LZTC serves as a central transportation hub for the City of Glendale. Several public transportation systems; such as Amtrak, Metrolink, Greyhound, Metro, and the Glendale Beeline utilizes the LZTC as a transfer point and/or layover. Ten Pacif ic Surfliner trains serve the station daily and 54 Metrolink trains serve the station each weekday, as well as serving the Antelope Valley Line on Saturdays. 10 700-702 S LOUISE STREET
LOCATION MAP GLENDALE, CA 91205 11
FINANCIAL OVERVIEW INVESTMENT SUMMARY Offering Price: $2,085,000 Number of Units: 6 Property: 700-02 S. Louise Street Year Built: 1954 Glendale, CA 91205 APN: 5641-011-001 Price Per Unit: $347,500 Gross Sq. Ft.: 5,637 Price Per S.F.: $369.88 Average S.F. Per Unit: 940 Cap (current / market): 2.18% / 4.09% Lot Size (Acres): 7,195 GRM (current / market): 23.74 / 15.96 Zoning: R-1650 (Medium Density Res.) UNIT MIX Total Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent 6 2+1 100% $1,200 $7,200 $1,795 $10,770 Scheduled Monthly Rent: $7,200 $10,770 Scheduled Yearly Rent: $86,400 $129,240 RENT ROLL # Unit Mix Rent Market Rent 1 1 2+1 $1,200 $1,795 2 2 2+1 $1,200 $1,795 3 3 2+1 $1,200 $1,795 4 4 2+1 $1,200 $1,795 5 5 2+1 $1,200 $1,795 6 6 2+1 $1,200 $1,795 Totals $7,200 $10,770 Averages $1,200 $1,795 12 700-702 S LOUISE STREET
ANNUALIZED OPERATING DATA Current Market Scheduled Gross Income: $86,400 $129,240 50% Upside Less Vacancy Reserve: 3.0% $2,592 3.0% $3,877 Laundry Income: $1,440 $1,440 Gross Operating Income: $85,248 $126,803 Expenses: 46.1% $39,833 32.11% $41,495 Net Operating Income: $45,415 $85,308 Pre-Tax Cash Flow: 2.18% $45,415 4.09% $85,308 Total Return Before Taxes: 2.18% $45,415 4.09% $85,308 * As a percent of Scheduled Gross Income ** As a percent of Down Payment PRO FORMA ANNUAL OPERATING EXPENSES Current Per Unit % of SGI *Taxes 1.082% x Sale Price $22,560 $3,760 26% Off-Site Management 4.0% x GOI $3,410 $568 4% *Insurance $0.35 x GSF $1,973 $329 2% Repairs & Maintenance & Turnover $500 x Units $3,000 $500 3% Landscaping $120 T12 $1,440 $240 2% Pest Control Actual T12 $250 $42 0% Utilities Actual T12 $5,400 $900 6% Trash $120 x 12 Months $1,200 $200 1% General Administration $100 x Units $600 $100 0.69% Total Expenses $39,833 $6,639 46.1% Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $24,533 $4,089 28.4% Total Expense with out Taxes $17,273 $2,879 19.99% ** Seller will be performing a 1031 Exchange and is requesting to have optional extensions of escrow periods with notice to buyer and escrow GLENDALE, CA 91205 13
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RENT COMPARABLES ADDRESS ASKING RENT SF YEAR NOTES 2 BEDROOM 1 BATHROOM S 700-02 S. LOUISE STREET, GLENDALE, CA 91205 $1,200 900 1954 1 1437 E. Maple Street, Glendale, CA 91205 $1,995 900 1952 2 838 Fischer Street, Glendale, CA 91205 $1,795 740 1970 3 1438 Dixon Street, Glendale, CA 91205 $1,995 775 1948 AVERAGES: $1,928 805 1956 GLENDALE, CA 91205 15
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Property located at 700-02 S Louise Street, Glendale, CA ( Property ). It has been prepared by Matthews Retail Advisors. 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 Retail Advisors. 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 Retail Advisors 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 Retail Advisors 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. 16 700-702 S LOUISE STREET
EXCLUSIVELY LISTED BY MICHAEL ASTORIAN ASSOCIATE MULTIFAMILY Direct +1 818 923 6123 Mobile +1 818 926 8889 Michael.Astorian@matthews.com License No. 01974130 DAVID HARRINGTON EVP & NATIONAL DIRECTOR MULTIFAMILY Direct +1 310 295 1170 Mobile +1 310 497 5590 David.Harrington@matthews.com License No. 01320460 700-02 S Louise Street Glendale, CA 91205 O F F E R I N G M E M O R A N D U M