OFFERING MEMORANDUM 312 N. BELMONT ST GLENDALE CA 91206
CONFIDENTIALITY & DISCLAIMER 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. Exclusively Listed By DAVID WEINBERGER Multifamily Investment Advisor 818.432.1583 davidweinberger@kw.com CalBRE Lic#01349349 ADAM ZUNDER Multifamily Investment Advisor 818.432.1634 azunder@kw.com CalBRE Lic#01821053 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 any materials or information pro-vided, 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 in-creased 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 Studio City in compliance with all applicable fair housing and equal opportunity laws.
PAGE 04 10 14 20 THE OFFERING INVESTMENT OVERVIEW LOCATION INFORMATION DEMOGRAPHICS
THE OFFERING 312 N. BELMONT ST GLENDALE CA 91206 4
THE OFFERING The Belmont is a charming Non-Rent Controlled 6 unit apartment community in L.A s most compelling rental market, Glendale (91206). The asset, built in 1970 resides on a quaint residential street. The property is in close proximity to The Americana, Glendale Fashion Center and various dining options along E. Wilson Avenue. The asset is reflective of the local community with a unit mix that will attract the areas discerning resident and is perfectly positioned for an owner/user or investor. The property features an excellent unit mix of Six (2) Bedrooms (2) Bathrooms. All Interiors have wood flooring, AC wall units and new windows. The exterior is aesthetically pleasing with a welcoming vibe. All apartment homes feature copper plumbing and pride of ownership charm. The current owner has created a proven concept that has captured exceptional rents with well qualified residents. This residential income asset offers a gated entry with parking for 6 vehicles, plus all systems including plumbing, electrical and roof are in great condition. The asset offers additional potential profit opportunities which could entail providing a washer/dryer in each unit. 5
PROPERTY HIGHLIGHTS Highly Desirable Location in one of L.A. s most stable neighborhoods Non Rent Control Can raise rents with a 30 day notice Glendale was named LA s Neighborhood of the Year by the readers and editors of Curbed.com Rare opportunity to acquire a property in this area Ability to Maintain High occupancy levels through all Real Estate Cycles Surrounded by Single Family Homes In-Place Proven Concept Capturing Exceptional Current and Future Income Potential Glendale is well poised for Economic Growth 6 Parking Spaces Close Proximity to The Americana Copper Plumbing Below Market Rents Significant Upside Potential Stabilizes at a 5.53% CAP Rate Pride of Ownership Safe & Secure Private Entrance Excellent Unit Mix of (6) 2+2 Strong Economic Base Close to Major Employment Centers 6
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PROPERTY DETAILS Property Address: Price: Number of Units: Price/Unit: Current CAP Current GRM: Building Size: Lot Size: Zoning: APN: Year Built: Stories: Construction: Parking: 312 N. Belmont Glendale CA 91206 $2,995,000 6 $500,000 2.45% 24.46 7,167 SF 8,001 SF LAR3 5645-012-021 1970 2 Stucco / Wood Frame 6 Spaces 9 These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Keller Williams Realty/KW Commercial or its personnel, and all interested parties must independently verify its accuracy and completeness. DAVID WEINBERGER M U L T I F A M I L Y R E A L E S T A T E A D V I S O R
INVESTMENT OVERVIEW 312 N. BELMONT ST GLENDALE CA 91206 10 APARTMENT EXPERT GROUP M U L T I F A M I L Y R E A L E S T A T E A D V I S O R S
FINANCIAL SUMMARY 312 N. BELMONT ST GLENDALE CA 91206 FINANCIAL INDICATORS ESTIMATED ANNUALIZED EXPENSES Price: Down Payment: $2,995,000 $2,995,000 New Property Taxes: Utilities: $37,438 $2,700 Current CAP: Market CAP: Current GRM: Market GRM: Cost Per SF: Cost Per Unit: 2.45% 3.97% 24.42 17.70 $417 $499,167 Waste Removal: Property Insurance: Registration Fees: Landscaping: Repairs & Maintenance: $360 $3,229 $324 $300 $2,100 Cash on Cash Return: Expenses Per Unit: Expenses Per SF: 2.45% -$7,792 ($6.51) Pest Control: Total Estimated Expenses: $300 -$46,750.70 BUILDING DATA Units: Year Built: Lot SF: Building Gross SF: Parking Spaces: 6 1970 8,001 7,176 6 11 These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Keller Williams Realty/KW Commercialor its personnel, and all interested parties must independently verify its accuracy and completeness. APARTMENT EXPERT GROUP M U L T I F A M I L Y R E A L E S T A T E A D V I S O R S
FINANCIAL SUMMARY 312 N. BELMONT ST GLENDALE CA 91206 SOURCE OF INCOME CURRENT MARKET # of Units Unit Type Avg SF Avg Rent Total Avg Rent Income 6 2 + 2 1,000 $1,653 $9,919 $2,300 $13,800 Total Rental Income Laundry Income Estimate $9,919 $300 $13,800 $300 INCOME SUMMARY Total Monthly Income Total Annual Income $10,219 $122,629 $14,100 $169,200 ESTIMATED ANNUALIZATION OPERATING DATA Scheduled Gross Income: CURRENT $122,629 MARKET $169,200 Less Vacancy: 2.0% ($2,453) 2.0% ($3,384) Gross Operating Income: $120,176 $165,816 Less Expenses: -38.1% ($46,751) ($46,813) Net Operating Income: $73,425 $119,003 Less Loan Payment: $0 $0 Pre-Tax Cash Flow: $73,425 $119,003 Return on Investment 2.45% 3.97% 12 These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Keller Williams Realty/KW Commercialor its personnel, and all interested parties must independently verify its accuracy and completeness. APARTMENT EXPERT GROUP M U L T I F A M I L Y R E A L E S T A T E A D V I S O R S
RENT ROLL 312 N. BELMONT ST GLENDALE CA 91206 UNIT # STATUS UNIT TYPE CURRENT MARKET RENT RENT / SF RENT RENT / SF 1 Occupied 2 + 2 $1,688.00 $1.69 $2,300 $2.30 2 Occupied 2 + 2 $1,850.00 $1.85 $2,300 $2.30 3 Occupied 2 + 2 $1,632.00 $1.63 $2,300 $2.30 4 Occupied 2 + 2 $1,450.00 $1.45 $2,300 $2.30 5 Occupied 2 + 2 $1,650.00 $1.65 $2,300 $2.30 6 Occupied 2 + 2 $1,650.00 $2.87 $2,300 $4.00 UNITS OCCUPIED OCCUPANCY RENT RENT / SF RENT RENT / SF 6 6 100% $9,919 $1.65 $13,800 $2.30 TOTAL / AVERAGES UNITS OCCUPIED OCCUPANCY RENT RENT / SF RENT RENT / SF 6 6 100% $9,919 $0.62 $13,800 $0.86 13 These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Keller Williams Realty/KW Commercialor its personnel, and all interested parties must independently verify its accuracy and completeness.
LOCATION INFORMATION 312 N. BELMONT ST GLENDALE CA 91206 14
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AREA HIGHLIGHTS Glendale is the third largest city in Los Angeles County. This diverse community has been home to working class families and blossoming artists, musicians and writers since It s inception in 1906.Glendale is home to the annual Street Food Cinema Festivals as well as world-class dining, beautiful homes, modern architecture, great schools, parks and libraries. Glendale s Motto is Your life, animated due to the many beloved animated films which have been created by Disney and DreamWorks in Glendale. Many American animators who worked on feature films in the 1990s and 2000s have spent large portions of their careers in Glendale working for Disney or DreamWorks. 16
AREA HIGHLIGHTS Several large companies have offices in Glendale including the U.S. headquarters of International House of Pancakes. The Los Angeles regional office of California s State Compensation Insurance Fund is in Glendale. Americas United Bank was founded in Glendale in 2006 and is still headquartered there. In August 2013, Avery Dennison Corp., a label maker for major brands, announced plans to move its headquarters from Pasadena to Glendale.[28] Avery employs about 26,000 people. The U.S. headquarters of the Swiss foods multinational Nestlé plans to move out by 2018.[29] Glendale, along with Burbank, has served as a major production center for the U.S. entertainment industry and the U.S. animation industry in particular for several decades, because the Walt Disney Company outgrew its Burbank studio lot in the early 1960s, and started expanding into the closest business park available, which happened to be Glendale s Grand Central Business Centre about two miles east. 17
LOCATION MAPS 312 N. BELMONT ST GLENDALE CA 91206 312 N. BELMONT ST 18 These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Keller Williams Realty/KW Commercialor its personnel, and all interested parties must independently verify its accuracy and completeness.
AERIAL MAP 312 N. BELMONT ST GLENDALE CA 91206 19 These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Keller Williams Realty/KW Commercialor its personnel, and all interested parties must independently verify its accuracy and completeness.
DEMOGRAPHICS 312 N. BELMONT ST GLENDALE CA 91206 20
DEMOGRAPHICS SNAPSHOT 312 N. BELMONT ST GLENDALE CA 91206 POPULATION 0.25 MILES 0.5 MILE 1 MILES Total Population Median Age Median Age (Male) Median Age (Female) 5,644 41.8 37.7 43.2 17,985 41.5 38.0 43.0 56,335 40.7 38.3 41.9 HOUSEHOLDS & INCOME 0.25 MILES 0.5 MILE 1 MILES Total Households # of Persons Per HH Average HH Income Average House Value 2,256 2.5 $64,310 $498,906 7,277 2.5 $62,855 $488,583 22,080 2.6 $61,240 $511,524 RACE 0.25 MILES 0.5 MILE 1 MILES % White % Black % Asian % Hawaiian % Indin % Other 74.5% 1.9% 17.0% 0.3% 0.3% 4.7% 74.3% 2.3% 16.5% 0.2% 0.2% 4.8% 73.2% 2.0% 16.4% 0.1% 0.2% 5.9% ETHNICITY 0.25 MILES 0.5 MILE 1 MILES % Hispanic 11.8% 13.3% 15.9% 21 These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Keller Williams Realty/KW Commercialor its personnel, and all interested parties must independently verify its accuracy and completeness.
Exclusively Listed By DAVID WEINBERGER Multifamily Investment Advisor 818.432.1583 davidweinberger@kw.com CalBRE Lic#01349349 ADAM ZUNDER Multifamily Investment Advisor 818.432.1634 azunder@kw.com CalBRE Lic#01821053 DAVID WEINBERGER M U L T I F A M I L Y R E A L E S T A T E A D V I S O R