Martin Luther King 1951-57 W. Martin Luther King Jr. Blvd Los PROPERTY HIGHLIGHTS Michael Salerno Executive Vice President (310) 202-9166 michaels@mdrealtycorp.com 3627 Motor Avenue Los Angeles, CA 90034 8 units close to Leimert Park Upside in the rents Individually metered for gas and electricity Good unit mix Close to Baldwin Hills Crenshaw Plaza, new Kaiser Permanente facility, Expo Line, USC and Downtown Los Angeles www.mdrealtycorp.com
PROPERTY DESCRIPTION 1951-57 W. Martin Luther King 8 units near Leimert Park. Good unit mix. 4 large singles, 3-1bd+1ba and 1-2bd+1ba. Below market rents. Huge upside potential. On site parking. Individually metered for gas and electricity. Some of the units have individual water heaters. Close to the Baldwin Hills/Crenshaw Plaza and the new Kaiser Permanente facility. Minutes to USC, Los Angeles Coliseum, public transportation, Downtown Los Angeles, shops and restaurants. Nearby Baldwin Hills is booming w/ development making this an excellent opportunity to benefit from surrounding growth. page - 2
PROPERTY PHOTOS 1951-57 W. Martin Luther King page - 3
INVESTMENT DETAILS ANALYSIS Analysis Date March 2018 PROPERTY Property Property Address Martin Luther King 1951-57 W. Martin Luther King Jr. Los Angeles, CA 90062 Year Built 1923 PURCHASE INFORMATION Property Type MultiFamily Purchase Price $1,480,000 Units 8 Total Rentable Sq. Ft. 4,762 FINANCIAL INFORMATION All Cash LOANS Type Debt Term Amortization Rate Payment LO Costs All Cash INCOME & EXPENSES Gross Operating Income $78,792 Monthly GOI $6,566 Total Annual Expenses ($31,816) Monthly Expenses ($2,651) page - 4
EXECUTIVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs $1,480,000 Investment - Cash $0 Investment Information Purchase Price $1,480,000 Price per Unit $185,000 Price per Sq. Ft. $310.79 Income per Unit $10,154 Expenses per Unit ($3,977) Income, Expenses & Cash Flow Gross Scheduled Income $81,229 Total Vacancy and Credits ($2,437) Operating Expenses ($31,816) Net Operating Income $46,976 Debt Service $0 Cash Flow Before Taxes $46,976 Financial Indicators Debt Coverage Ratio N/A Capitalization Rate 3.17% Gross Rent Multiplier 18.22 Gross Income / Square Feet $17.06 Gross Expenses / Square Feet ($6.68) Operating Expense Ratio 40.38% page - 5
PRO FORMA SUMMARY INCOME Description Actual Per Unit Market Per Unit Gross Potential Rent $81,229 $10,154 $114,600 $14,325 Less: Vacancy ($2,437) ($305) ($3,438) ($430) Effective Gross Income $78,792 $9,849 $111,162 $13,895 OPERATING EXPENSES Description Actual Per Unit Market Per Unit Building Insurance $3,161 $395 $3,161 $395 Grounds Maintenance $1,500 $188 $1,500 $188 Maintenance $4,500 $563 $4,500 $563 Misc $500 $63 $500 $63 Repairs $2,500 $313 $2,500 $313 Taxes - Real Estate $17,280 $2,160 $17,280 $2,160 Utility - Electricity $1,550 $194 $1,550 $194 Utility - Gas $825 $103 $825 $103 Total Expenses ($31,816) ($3,977) ($31,816) ($3,977) NET OPERATING INCOME $46,976 $5,872 $79,346 $9,918 page - 6
PRO FORMA SUMMARY UNIT MIX & MONTHLY SCHEDULED Type Units Actual Total Market Total 0+1 1 $702 $702 $1,100 $1,100 0+1 1 $716 $716 $1,100 $1,100 1+1 1 $932 $932 $1,250 $1,250 1+1 1 $1,000 $1,000 $1,250 $1,250 2+1 1 $956 $956 $1,400 $1,400 1+1 1 $627 $627 $1,250 $1,250 0+1 1 $736 $736 $1,100 $1,100 0+1 1 $1,100 $1,100 $1,100 $1,100 TOTALS 8 $6,769 $9,550 INVESTMENT SUMMARY Price: $1,480,000 Year Built: 1923 Units: 8 Price/Unit: $185,000 RSF: 4,762 Price/RSF: $310.79 Lot Size: 8,911 sf Floors: 2 Parking Spaces: 8 APN: 5035-006-011 Cap Rate: 3.17% Market Cap Rate: 5.36% GRM: 18.22 Market GRM: 12.91 ANNUALIZED INCOME Description Actual Market Gross Potential Rent $81,229 $114,600 Less: Vacancy ($2,437) ($3,438) Effective Gross Income $78,792 $111,162 Less: Expenses ($31,816) ($31,816) Net Operating Income $46,976 $79,346 ANNUALIZED EXPENSES Description Actual Market Building Insurance $3,161 $3,161 Grounds Maintenance $1,500 $1,500 Maintenance $4,500 $4,500 Misc $500 $500 Repairs $2,500 $2,500 Taxes - Real Estate $17,280 $17,280 Utility - Electricity $1,550 $1,550 Utility - Gas $825 $825 Total Expenses $31,816 $31,816 Expenses Per RSF $6.68 $6.68 Expenses Per Unit $3,977 $3,977 page - 7
UNIT MIX REPORT Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 1 0+1 0 $702 $702 $1,100 $1,100 1 0+1 0 $716 $716 $1,100 $1,100 1 1+1 0 $932 $932 $1,250 $1,250 1 1+1 0 $1,000 $1,000 $1,250 $1,250 1 2+1 0 $956 $956 $1,400 $1,400 1 1+1 0 $627 $627 $1,250 $1,250 1 0+1 0 $736 $736 $1,100 $1,100 1 0+1 0 $1,100 $1,100 $1,100 $1,100 8 0 $6,769 $9,550 UNIT MIX UNIT MIX SQUARE FEET 2+1 2+1 UNIT MIX INCOME UNIT MIX MARKET INCOME 2+1 2+1 page - 8
MAPS AND AERIALS Martin Luther King 1951-57 W. Martin Luther King Jr. Blvd Los Angeles, CA 90062 page - 9
LOCATION MAP page - 10
AERIAL MAP page - 11
DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile Male 26,521 (47.36 %) 228,672 (48.17 %) 635,166 (49.15 %) Female 29,475 (52.64 %) 246,034 (51.83 %) 657,214 (50.85 %) Total Population 55,996 474,706 1,292,380 Age Breakdown 1 Mile 3 Mile 5 Mile Ages 0-4 3,655 (6.53 %) 31,445 (6.62 %) 81,194 (6.28 %) Ages 5-9 4,211 (7.52 %) 36,026 (7.59 %) 94,400 (7.30 %) Ages 10-14 3,862 (6.90 %) 32,554 (6.86 %) 85,525 (7.30 %) Ages 15-19 3,855 (6.88 %) 32,080 (6.76 %) 83,335 (6.45 %) Ages 20-24 4,254 (7.60 %) 35,490 (7.48 %) 90,134 (6.97 %) Ages 25-29 4,378 (7.82 %) 37,803 (7.96 %) 95,356 (7.38 %) Ages 30-34 4,202 (7.50 %) 37,903 (7.98 %) 98,377 (7.61 %) Ages 35-39 4,039 (7.21 %) 36,923 (7.78 %) 100,992 (7.81 %) Ages 40-44 3,942 (7.04 %) 35,400 (7.46 %) 101,344 (7.84 %) Ages 45-49 3,950 (7.05 %) 33,699 (7.10 %) 98,207 (7.60 %) Ages 50-54 3,689 (6.59 %) 29,994 (6.32 %) 87,442 (6.77 %) Ages 55-59 3,229 (5.77 %) 25,710 (5.42 %) 74,633 (5.77 %) Ages 60-64 2,615 (4.67 %) 20,803 (4.38 %) 60,093 (4.65 %) Ages 65-69 1,999 (3.57 %) 15,807 (3.33 %) 45,634 (3.53 %) Ages 70-74 1,435 (2.56 %) 11,429 (2.41 %) 32,985 (2.55 %) Ages 75-79 956 (1.71 %) 7,880 (1.66 %) 22,771 (1.76 %) Ages 80-84 588 (1.05 %) 5,078 (1.07 %) 14,908 (1.15 %) Ages 85+ 1,137 (2.03 %) 8,682 (1.83 %) 25,050 (1.94 %) page - 12
DEMOGRAPHICS Household Income 1 Mile 3 Mile 5 Mile Median Income $39,633 $33,894 $37,044 Less than $10,000 1,557 17,266 47,646 $10,000 -$14,999 1,641 16,073 43,483 $15,000 - $19,999 1,438 11,967 33,520 $20,000 -$24,999 958 11,294 30,986 $25,000 - $29,999 1,088 10,038 28,101 $30,000 - $34,999 1,125 9,819 26,618 $35,000 - $39,999 1,252 8,466 23,575 $40,000 - $44,999 1,138 7,244 21,948 $45,000 - $49,999 804 5,646 17,225 $50,000 - $59,999 1,451 10,789 31,464 $60,000 - $74,999 1,560 11,288 35,792 $75,000 - $99,999 1,680 10,249 34,825 $100,000 - $124,999 740 5,569 19,940 $125,000 - $149,999 468 2,757 11,118 $150,000 - $199,999 254 2,386 11,342 Greater than $200,000 114 1,573 9,859 Housing 1 Mile 3 Mile 5 Mile Housing Units 18,327 154,111 466,615 Occupied Units 17,198 143,452 431,894 Owner Occupied Units 7,267 44,995 112,375 Renter Occupied Units 9,931 98,457 319,519 Vacant Units 1,129 10,659 34,721 Race Demographics 1 Mile 3 Mile 5 Mile Population Non Hispanic White 10,735 111,943 375,444 Population Black 21,969 135,616 278,472 Population Am In/Ak Nat 130 1,270 4,450 page - 13