Beck Avenue 6641 Beck Avenue PROPERTY HIGHLIGHTS Unique unit mix with four 3 bedroom/2bathroom units, one 2bedroom/1batrhroom and one 1bedroom/1bathroom. Many upgrades, including two fully renovated 3 bedroom units, and new water heater. Prepared By Alexandra Pugachoff +1310663.2799 alexandrarealty@gmail.com Huge upside in rents and additional income from private laundry facility onsite. Well-maintained 6 unit apartment building under the professional management. Good location of North Hollywood. Excellent access to freeways and public transportation, shopping and entertaining. 1642 Westwood Blvd, Suite 300 Los Angeles, CA 90025
Table of Contents Property Description... 3 Investment Details... 4 Unit Mix Report... 5 Pro Forma Summary... 6 Recent Sale Comparables... 8 Location Map... 12 Demographics... 13 Regional Map... 14 Aerial Map... 15
PROPERTY DESCRIPTION KW Commercial pleased to have an opportunity to present six-unit apartment building with the unique mix of units located in the rapidly gentrified area of North Hollywood. The building was built in 1961 and has an excellent unit mix of (4) 3 bedroom + 2 bath units, (1) 2 + 1 unit and (1) 1+1 unit with two completely renovated 3 bedrooms. There is potential for significant upside in rents.the building consists of 6,119 square feet and is situated on a 6751.1 square feet lot. The building has been well maintained by its existing owners. The building is also under the professional management.the property has a private laundry room, and 6 garage spaces. The building is advantageously situated near ValleyVillage, Burbank, Toluca lake, Universal City, and North Hollywood.It is close to theaters, cafes, shops. North Hollywood features one of the largest concentration of music recording venues in the United States. This distinction attracts well-to-do artists and musicians to the area. It is close to freeways and public transportation with the metro rail stations and the Red & Orange line bus ways. In the future, North Hollywood plans a $1 billion mixed-use development at Lankershim and Chandler, surrounding the Metro Red and Orange line terminals. The project would re-develop 15.6 acres of commercial and residential space, including 562 residential units and three high-rise office towers. This property presents great opportunity to the investor and even to the owner-user, who can occupy one of the renovated 3 bedrooms with the excellent floor plans. p. 3
INVESTMENT DETAILS Analysis Analysis Date February 2018 Property Property Property Address Beck Avenue 6641 Beck Avenue Year Built 1961 Purchase Information Property Type MultiFamily Purchase Price $1,550,000 Fair Market Value $1,550,000 Units 6 Total Rentable Sq. Ft. 6,119 Resale Valuation 15.0% (annual appreciation) Financial Information Down Payment $750,000 State Tax Rate 1.25% Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $800,000 15 years 15 years 4.0% $5,918 Income & Expenses Gross Operating Income $105,828 Monthly GOI $8,819 Total Annual Expenses ($34,040) Monthly Expenses ($2,837) Contact Information Alexandra Pugachoff +1310663.2799 alexandrarealty@gmail.com p. 4
UNIT MIX REPORT Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 4 3bdr/2bth 1100 $1,612 $6,448 $2,500 $10,000 1 2bd/1bth 950 $1,137 $1,137 $2,150 $2,150 1 1bd/1bth 769 $1,114 $1,114 $1,450 $1,450 6 6,119 $8,699 $13,600 UNIT MIX UNIT MIX SQUARE FEET 3bdr/2bth 2bd/1bth 1bd/1bth 3bdr/2bth 2bd/1bth 1bd/1bth UNIT MIX INCOME UNIT MIX MARKET INCOME 3bdr/2bth 2bd/1bth 1bd/1bth 3bdr/2bth 2bd/1bth 1bd/1bth p. 5
PRO FORMA SUMMARY INCOME Description Actual Per Unit Market Per Unit Gross Potential Rent $104,388 $17,398 $163,200 $27,200 Less: Vacancy $0 $0 $0 $0 Misc. Income $720 $120 $960 $160 Effective Gross Income $105,108 $17,518 $164,160 $27,360 OPERATING EXPENSES Description Actual Per Unit Market Per Unit Building Insurance $2,500 $417 $2,500 $417 Grounds Maintenance $1,200 $200 $1,200 $200 Pest Control $700 $117 $700 $117 Maintenance $1,850 $308 $1,850 $308 Management Fees $4,000 $667 $4,000 $667 Taxes for the new owner $15,140 $2,523 $19,375 $3,229 Trash Removal $1,650 $275 $1,650 $275 Utility - DWP $5,500 $917 $5,500 $917 Utility - Gas $1,500 $250 $1,500 $250 Total Expenses ($34,040) ($5,673) ($38,275) ($6,379) NET OPERATING INCOME $71,068 $11,845 $125,885 $20,981 p. 6
PRO FORMA SUMMARY UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Market Total 3bdr/2bth 4 $19,344 $77,376 $30,000 $120,000 2bd/1bth 1 $13,644 $13,644 $25,800 $25,800 1bd/1bth 1 $13,368 $13,368 $17,400 $17,400 TOTALS 6 $104,388 $163,200 INVESTMENT SUMMARY Price: $1,550,000 Year Built: 1961 Units: 6 Price/Unit: $258,333 RSF: 6,119 Price/RSF: $253.31 Lot Size: 6,751 sf Floors: 2 Parking Spaces: 1/1019 APN: LARD1.5 Cap Rate: 4.59% Market Cap Rate: 8.12% GRM: 14.75 Market GRM: 9.44 FINANCING SUMMARY Loan Amount: $800,000 Down Payment: $750,000 Loan Type: Fixed Interest Rate: 4% Term: 15 years Monthly Payment: $5,918 DCR: 1.0 ANNUALIZED INCOME Description Actual Market Gross Potential Rent $104,388 $163,200 Less: Vacancy $0 $0 Misc. Income $720 $960 Effective Gross Income $105,108 $164,160 Less: Expenses ($34,040) ($38,275) Net Operating Income $71,068 $125,885 Debt Service ($71,010) ($71,010) Net Cash Flow after Debt Service $58 $54,875 Principal Reduction $39,733 $39,733 Total Return $39,791 $94,608 ANNUALIZED EXPENSES Description Actual Market Building Insurance $2,500 $2,500 Grounds Maintenance $1,200 $1,200 Pest Control $700 $700 Maintenance $1,850 $1,850 Management Fees $4,000 $4,000 Taxes for the new owner $15,140 $19,375 Trash Removal $1,650 $1,650 Utility - DWP $5,500 $5,500 Utility - Gas $1,500 $1,500 Total Expenses $34,040 $38,275 Expenses Per RSF $5.56 $6.26 Expenses Per Unit $5,673 $6,379 p. 7
RECENT SALE COMPARABLES 8% Cap Rate 24.0 Gross Rent Multiplier 7% 21.0 6% 5% 18.0 15.0 Avg. 16.8 4% 3% Avg. 3.74 12.0 9.0 2% 6.0 1% 3.0 Subject 1 2 3 4 5 6 8 Subject 1 5 6 8 $336,000 Price per Unit $520 Price per Sq. Ft. $294,000 $252,000 $210,000 Avg. $281,589 $455 $390 $325 Avg. $377.38 $168,000 $260 $126,000 $195 $84,000 $130 $42,000 $65 Subject 1 2 3 4 5 6 7 8 Subject 1 2 3 4 5 6 7 8 p. 8
RECENT SALE COMPARABLES S Beck Avenue 6641 Beck Avenue Sale Price $1,550,000 Units 6 Price/Unit $258,333 Price/SqFt $247.25 Cap Rate 4.63% Year Built 1961 GRM 14.65 4 3bdr/2bth 1 2bd/1bth 1 1bd/1bth 1 Sale Date 12/4/2017 5237 Denny Avenue North Hollywood, CA 91601 Sale Price $1,850,000 Units 8 Price/Unit $231,250 Price/SqFt $317.32 Cap Rate 4.4% Year Built 1987 GRM 16.6 8 Two Bedroom One Bath 2 Sale Date 5/1/2017 4911 Laurel Canyon Blvd. Valley Village, CA 91607 Sale Price $1,950,000 Units 7 Price/Unit $278,571 Price/SqFt $513.70 Cap Rate 4.8% Year Built 1962 GRM N/A 7 One Bedroom One Bath p. 9
RECENT SALE COMPARABLES 3 Sale Date 10/13/2017 5300 Vantage North Hollywood, CA 91607 Sale Price $1,900,000 Units 7 Price/Unit $271,429 Price/SqFt $372.26 Cap Rate 3.0% Year Built 1953 GRM N/A 6 Studio/Efficiency 1 One Bedroom One Bath 4 Sale Date 12/11/2017 4911 Laurel Canyon Blvd. Valley Village, CA 91607 Sale Price $2,625,000 Units 8 Price/Unit $328,125 Price/SqFt $284.77 Cap Rate 3.62% Year Built 1962 GRM N/A 8 Two Bedroom One Bath 5 Sale Date 1/6/2017 4208 Vantage Avenue Studio City, CA 91604 Sale Price $1,955,000 Units 8 Price/Unit $244,375 Price/SqFt $382.73 Cap Rate 3.19% Year Built 1964 GRM 17.2 5 Two Bedroom Two Bath 3 One Bedroom One Bath p. 10
RECENT SALE COMPARABLES 6 Sale Date 6/8/2016 11101 CAMARILLO ST North Hollywood, CA 91602 Sale Price $2,325,000 Units 8 Price/Unit $290,625 Price/SqFt $412.23 Cap Rate 3.81% Year Built 1948 GRM 15.9 2 Two Bedroom One Bath 6 One Bedroom One Bath 7 Sale Date 1/20/2017 11135-11137 Camarillo St North Hollywood, CA 91602 Sale Price $2,000,000 Units 6 Price/Unit $333,333 Price/SqFt $350.88 Cap Rate N/A Year Built 1950 GRM N/A 2 Two Bedroom One Bath 6 One Bedroom One Bath 8 5029 Cartwright Avenue North Hollywood, CA 91601 Sale Date 2/2/2018 Sale Price $1,650,000 Units 6 Price/Unit $275,000 Price/SqFt $385.15 Cap Rate 3.36% Year Built 1952 GRM 17.5 NOTES This property presently is under contract. The exact day of contract is N/A. Month and Year are correct. 4 One Bedroom One Bath 2 Two Bedroom One Bath p. 11
LOCATION MAP p. 12
DEMOGRAPHICS Population Characteristic 1 Mile 3 Mile 5 Mile Ages 0-4 3,177 16,294 37,306 Ages 5-9 3,657 19,102 43,665 Ages 10-14 3,258 17,118 39,237 Ages 15-19 3,126 16,512 37,767 Ages 20-24 3,356 18,082 40,415 Ages 25-29 3,482 19,275 42,548 Ages 30-34 3,553 20,298 44,818 Ages 35-39 3,606 21,651 48,265 Ages 40-44 3,591 22,934 51,922 Ages 45-49 3,509 23,290 53,455 Ages 50-54 3,059 21,634 49,803 Ages 55-59 2,529 18,957 43,776 Ages 60-64 1,937 15,577 35,857 Ages 65-69 1,371 11,924 27,474 Ages 70-74 918 8,601 19,785 Ages 75-79 588 5,942 13,779 Ages 80-84 345 3,871 9,094 Race Characteristic 1 Mile 3 Mile 5 Mile Non Hispanic White 21,057 170,719 393,038 Population Black 1,239 8,405 18,313 Population Am In/AK Nat 62 471 986 Household Income 1 Mile 3 Mile 5 Mile Median Household Income $38,664 $52,659 $56,732 < $10000 727 5,757 12,805 $10000-$14999 1,077 6,238 12,947 $15000-$19999 945 6,331 13,557 $20000-$24999 1,103 6,061 13,166 $25000-$29999 1,239 6,299 12,573 $30000-$34999 1,150 5,120 12,512 $35000-$39999 801 4,403 10,604 $40000-$44999 980 5,424 11,649 $45000-$49999 660 4,252 9,865 $50000-$60000 1,132 8,783 18,773 $60000-$74000 1,154 10,383 23,150 $75000-$99999 1,221 12,174 28,561 $100000-$124999 630 7,383 17,791 $125000-$149999 199 3,737 9,804 $150000-$199999 247 4,242 11,357 > $200000 72 3,418 12,006 Characteristic Housing 1 Mile 3 Mile Housing Units 14,172 109,218 Occupied Housing Units 13,483 102,807 Owner Occupied Housing Units 3,536 38,857 Renter Occupied Housing Units 9,947 63,950 Vacant Housing Units 689 6,411 p. 13
REGIONAL MAP p. 14
AERIAL MAP p. 15