OFFERING MEMORANDUM 2652-2656 Ellendale Place Los Angeles, CA 90007
2652-2656 Ellendale Place TABLE OF CONTENTS 5 7 8 9 01 Executive Summary Property Description Investment Detail Executive Summary Pro Forma Summary 03 Property Photographs 04 Map Views 05 Demographic Reports 02 Rent Roll & Rental Comps Presented By 310.202.9166 Ext. 302 310.202.9166 Ext. 506 Lic: 00847295 Lic: 01856514 gfox@mdrealtycorp.com mikew@mdrealtycorp.com President We obtained the following 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 thecurrent or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
2652-2656 ELLENDALE PLACE Executive Summary 01 Excutive Summary 2652-2656 ELLENDALE PL.
PROPERTY DESCRIPTION Miller & Desatnik as exclusive agent is pleased to present for sale Carolina, a 24-unit apartment community located in the University Park Area - the most sought after student housing area at USC. The building is within walking distance to the campus, local shops and restaurants. The property is located within the USC Transportation Campus Cruiser service boundaries- one of the largest student-run safe ride home programs in the country, and inside the USC Public Safety Patrol Area. Built in 1963, the building is comprised entirely of 2 Bedroom / 2 Bath Units. Carolina features a BBQ/Picnic Area, bicycle racks, on site laundry, gated parking for 38 cars, and controlled security access. The Unit amenities include: air conditioning, dishwashers, refrigerators, 2 mini refrigerators, quartz counter tops, pedestal sinks in bathrooms, flat screen televisions, internet/basic cable, ceiling fans, garbage disposals, hardwood style flooring, microwaves. The University of Southern California, currently enrolling more than 45,000 undergraduate, graduate and professional students, is one of the most prestigious universities in the country. USC is one of the top university destinations for international student enrollment and is ranked #21 on US News & World Report s National Universities list. Roughly 70% of USC students live off-campus, and with enrollment comprised of more graduate and professional students than undergraduate students, the demand for off-campus housing near the school is continually strong. page - 4
INVESTMENT DETAILS Analysis Analysis Date January 2018 Property Property Property Address Carolina 2652-2656 Ellendale Place Los Angeles, CA 90007 Year Built 1963 Purchase Information Property Type MultiFamily Purchase Price $13,000,000 Units 24 Total Rentable Sq. Ft. 20,804 Financial Information Down Payment $5,850,000 Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $7,150,000 30 years 30 years 4.0% $34,135 Income & Expenses Gross Operating Income $827,254 Monthly GOI $68,938 Total Annual Expenses ($360,279) Monthly Expenses ($30,023) Contact Information Gary Fox Mike Wozniak 310-202-9166 x 302 310-202-9166 x 506 gfox@mdrealtycorp.com mikew@mdrealtycorp.com 00847295 01856514 page - 5
EXECUTIVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs $13,000,000 Investment - Cash $5,850,000 First Loan $7,150,000 Investment Information Purchase Price $13,000,000 Price per Unit $541,667 Price per Sq. Ft. $624.88 Income per Unit $35,506 Expenses per Unit ($15,012) Income, Expenses & Cash Flow Gross Scheduled Income $852,142 Total Vacancy and Credits ($24,889) Operating Expenses ($360,279) Net Operating Income $466,975 Debt Service ($409,622) Cash Flow Before Taxes $57,352 Financial Indicators Cash on Cash Return Before Taxes 0.98% Debt Coverage Ratio 1.14 Capitalization Rate 3.59% Gross Rent Multiplier 15.26 Gross Income / Square Feet $40.96 Gross Expenses / Square Feet ($17.32) Operating Expense Ratio 43.55% page - 6
PRO FORMA SUMMARY UNIT MIX & MONTHLY SCHEDULED Type Units Actual Total 2+2 24 $2,881 $69,135 TOTALS 24 $69,135 INVESTMENT SUMMARY Price: $13,000,000 Year Built: 1963 Units: 24 Price/Unit: $541,667 RSF: 20,804 Price/RSF: $624.88 Lot Size: 20,700 sf Floors: 3 APN: 5055014012 & 5055014013 Cap Rate: 3.59% GRM: 15.26 FINANCING SUMMARY Loan Amount: $7,150,000 Down Payment: $5,850,000 Interest Rate: 4% Monthly Payment: $34,135 DCR: 1.14 ANNUALIZED INCOME Description Actual Gross Potential Income $852,142 Less: Vacancy ($24,889) Effective Gross Income $827,254 Less: Expenses ($360,279) Net Operating Income $466,975 Debt Service ($409,622) Net Cash Flow after Debt Service $57,352 Principal Reduction $125,914 Total Return $183,267 ANNUAL EXPENSES Description Actual Management Fees $29,980 Advertising $6,243 Utility Admin Fee $1,171 Leasing Commissions $3,400 Janitorial Service $8,250 Trash $8,505 Pest Control $970 Supplies $8,500 Maintenance & Repairs $60,460 Utilities $58,800 Property Taxes $162,000 Insurance $12,000 Total Expenses $360,279 Expenses Per RSF $17.32 Expenses Per Unit $15,012
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RENT ROLL Address Unit Unit Type Rent 2652 1 2 Bedroom + 2 Bath $2,734.00 2652 2 2 Bedroom + 2 Bath $2,995.00 2652 3 2 Bedroom + 2 Bath $2,995.00 2652 4 2 Bedroom + 2 Bath $2,884.00 2652 5 2 Bedroom + 2 Bath $3,100.00 2652 6 2 Bedroom + 2 Bath $2,695.00 2652 7 2 Bedroom + 2 Bath $2,995.00 2652 8 2 Bedroom + 2 Bath $2,975.00 2652 9 2 Bedroom + 2 Bath $3,100.00 2652 10 2 Bedroom + 2 Bath $2,700.00 2652 11 2 Bedroom + 2 Bath $2,569.85 2652 12 2 Bedroom + 2 Bath $2,775.00 2656 1 2 Bedroom + 2 Bath $2,975.00 2656 2 2 Bedroom + 2 Bath $2,646.95 2656 3 2 Bedroom + 2 Bath $2,569.85 2656 4 2 Bedroom + 2 Bath $2,975.00 2656 5 2 Bedroom + 2 Bath $3,100.00 2656 6 2 Bedroom + 2 Bath $2,695.00 2656 7 2 Bedroom + 2 Bath $2,995.00 2656 8 2 Bedroom + 2 Bath $2,975.00 2656 9 2 Bedroom + 2 Bath $3,225.00 2656 10 2 Bedroom + 2 Bath $2,569.85 2656 11 2 Bedroom + 2 Bath $2,695.00 2656 12 2 Bedroom + 2 Bath $3200.00 Vacant/ Projected page - 9
RENTAL COMPS 1239 W. 30th Street 925 W. 30th Street Address Unit Mix Rent 1239 W 30th Street 2+2 $3,295 2623 Ellendale Place 2+2 $3,300 3770 S Figueroa Street 2+2 $3,300 1241 W. 37th Place 2+2 $3,400 925 W 30th Street 2+2 $3,445 3029 Shrine Place 2+2 $3,450 1275 W. 30th Street 2+2 $4,000 2700 S Figueroa Street 2+2 $4,656 page - 10
2652-2656 ELLENDALE PLACE Property Photos 03 Property Photos 2652-2656 ELLENDALE PL.
PROPERTY PHOTOGRAPHS page - 12
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2652-2656 ELLENDALE PLACE Map Viewss 04 Map Views 2652-2656 ELLENDALE PL.
LOCATION MAP page - 19
MAPS AND AERIALS Carolina 2652-2656 Ellendale Place Los Angeles, CA 90007 page - 20
REGIONAL MAP page - 21
AERIAL MAP page - 22
2652-2656 ELLENDALE PLACE Dmographic Reports 05 Demographic Reports 2652-2656 ELLENDALE PL.
DEMOGRAPHICS Population Characteristic 1 Mile 3 Mile 5 Mile Ages 0-4 3,762 40,595 82,236 Ages 5-9 3,637 46,070 94,616 Ages 10-14 2,851 40,880 84,966 Ages 15-19 2,790 39,278 82,354 Ages 20-24 4,131 43,959 90,306 Ages 25-29 5,660 48,613 97,139 Ages 30-34 6,353 51,825 101,644 Ages 35-39 6,156 53,735 105,532 Ages 40-44 5,310 53,274 106,093 Ages 45-49 4,295 50,549 102,695 Ages 50-54 3,298 43,901 90,791 Ages 55-59 2,568 36,892 77,036 Ages 60-64 2,089 29,433 61,562 Ages 65-69 1,610 22,203 46,566 Ages 70-74 1,173 16,154 33,726 Ages 75-79 853 11,392 23,961 Ages 80-84 643 7,875 16,189 Race Characteristic 1 Mile 3 Mile 5 Mile Non Hispanic White 21,856 181,804 423,104 Population Black 4,732 85,102 203,976 Population Am In/AK Nat 74 2,932 4,752 Household Income 1 Mile 3 Mile 5 Mile Median Household Income $25,241 $31,237 $34,947 < $10000 3,316 27,131 50,321 $10000-$14999 2,010 26,490 47,069 $15000-$19999 1,629 19,332 36,469 $20000-$24999 1,373 17,376 32,902 $25000-$29999 1,034 14,972 29,594 $30000-$34999 870 14,065 27,877 $35000-$39999 694 13,074 24,998 $40000-$44999 673 10,165 21,281 $45000-$49999 494 8,602 17,835 $50000-$60000 1,010 14,627 32,018 $60000-$74000 1,085 15,001 33,405 $75000-$99999 843 13,154 32,503 $100000-$124999 272 6,873 17,899 $125000-$149999 210 3,419 10,020 $150000-$199999 131 3,132 9,931 > $200000 103 2,101 8,883 Characteristic Housing 1 Mile 3 Mile Housing Units 16,680 228,334 Occupied Housing Units 15,698 209,443 Owner Occupied Housing Units 1,919 34,154 Renter Occupied Housing Units 13,779 175,289 Vacant Housing Units 982 18,891 page - 24
DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile Male 28,344 (48.82 %) 329,612 (50.72 %) 663,340 (50.09 %) Female 29,714 (51.18 %) 320,227 (49.28 %) 660,940 (49.91 %) Total Population 58,058 649,839 1,324,280 Age Breakdown 1 Mile 3 Mile 5 Mile Ages 0-4 3,762 (6.48 %) 40,595 (6.25 %) 82,236 (6.21 %) Ages 5-9 3,637 (6.26 %) 46,070 (7.09 %) 94,616 (7.14 %) Ages 10-14 2,851 (4.91 %) 40,880 (6.29 %) 84,966 (7.14 %) Ages 15-19 2,790 (4.81 %) 39,278 (6.04 %) 82,354 (6.22 %) Ages 20-24 4,131 (7.12 %) 43,959 (6.76 %) 90,306 (6.82 %) Ages 25-29 5,660 (9.75 %) 48,613 (7.48 %) 97,139 (7.34 %) Ages 30-34 6,353 (10.94 %) 51,825 (7.98 %) 101,644 (7.68 %) Ages 35-39 6,156 (10.60 %) 53,735 (8.27 %) 105,532 (7.97 %) Ages 40-44 5,310 (9.15 %) 53,274 (8.20 %) 106,093 (8.01 %) Ages 45-49 4,295 (7.40 %) 50,549 (7.78 %) 102,695 (7.75 %) Ages 50-54 3,298 (5.68 %) 43,901 (6.76 %) 90,791 (6.86 %) Ages 55-59 2,568 (4.42 %) 36,892 (5.68 %) 77,036 (5.82 %) Ages 60-64 2,089 (3.60 %) 29,433 (4.53 %) 61,562 (4.65 %) Ages 65-69 1,610 (2.77 %) 22,203 (3.42 %) 46,566 (3.52 %) Ages 70-74 1,173 (2.02 %) 16,154 (2.49 %) 33,726 (2.55 %) Ages 75-79 853 (1.47 %) 11,392 (1.75 %) 23,961 (1.81 %) Ages 80-84 643 (1.11 %) 7,875 (1.21 %) 16,189 (1.22 %) Ages 85+ 879 (1.51 %) 13,211 (2.03 %) 26,868 (2.03 %) page - 25
DEMOGRAPHICS Household Income 1 Mile 3 Mile 5 Mile Median Income $25,241 $31,237 $34,947 Less than $10,000 3,316 27,131 50,321 $10,000 -$14,999 2,010 26,490 47,069 $15,000 - $19,999 1,629 19,332 36,469 $20,000 -$24,999 1,373 17,376 32,902 $25,000 - $29,999 1,034 14,972 29,594 $30,000 - $34,999 870 14,065 27,877 $35,000 - $39,999 694 13,074 24,998 $40,000 - $44,999 673 10,165 21,281 $45,000 - $49,999 494 8,602 17,835 $50,000 - $59,999 1,010 14,627 32,018 $60,000 - $74,999 1,085 15,001 33,405 $75,000 - $99,999 843 13,154 32,503 $100,000 - $124,999 272 6,873 17,899 $125,000 - $149,999 210 3,419 10,020 $150,000 - $199,999 131 3,132 9,931 Greater than $200,000 103 2,101 8,883 Housing 1 Mile 3 Mile 5 Mile Housing Units 16,680 228,334 473,685 Occupied Units 15,698 209,443 438,206 Owner Occupied Units 1,919 34,154 96,582 Renter Occupied Units 13,779 175,289 341,624 Vacant Units 982 18,891 35,479 Race Demographics 1 Mile 3 Mile 5 Mile Population Non Hispanic White 21,856 181,804 423,104 Population Black 4,732 85,102 203,976 Population Am In/Ak Nat 74 2,932 4,752 page - 26