Large, 2-parcel, 2-Bldg., 20 unit Opportunity Extremely well-maintained by long-term ownership with almost $250,000 of improvements. Seamless transition & operation on day one. Newer dual-pane windows and 30-year roof, both less than 5 years old as well as 2 newer mainlines and new pavement. 18/20 units have upgraded, granite surfaces, fixtures etc. Very dense population in a 5 mile radius 100s of 1,000s of potential renters at any given time. Immediate rent upside. No rent control. BRICE W. HEAD, MBA Senior Vice President (310) 344-8218 bhead@remaxcir.com CA BRE #01330706 RE/MAX COMMERCIAL & INVESTMENT REALTY 1040 Manhattan Beach Blvd Manhattan Beach, CA 90266 310-376-2225 www.bricehead.com Each office independently owned and operated
INVESTMENT DETAILS Analysis Analysis Date November 2017 Property Property Property Address 2-parcel, 2-Bldg., 20 unit Asset 14925 Clark Ave & 9354 Greenwell St Bellflower, CA 90706 Year Built 1957 & 1960 Purchase Information Property Type MultiFamily Purchase Price $4,399,000 Units 20 Total Rentable Sq. Ft. 12,237 Financial Information Down Payment $1,799,000 Loans Type Debt Term Amortization Rate Payment 5 Year Fixed $2,600,000 30 years 30 years 4% $12,413 Income & Expenses Gross Operating Income $287,640 Monthly GOI $23,970 Total Annual Expenses ($100,179) Monthly Expenses ($8,348) Contact Information Brice W. Head, MBA (310) 344-8218 bhead@remaxcir.com CA BRE #01330706
PROPERTY DESCRIPTION 14925 Clark Ave. Bellflower, CA 90706 The subject property is an extremely well-maintained 2-building/2-parcel asset with strong curb appeal creating strong "rentability" in the Bellflower market. The asset is fronted on Clark, with a one-story, 12 unit bungalow-style building with a landscaped center courtyard. In the rear is an 8 unit, 2-story building off Greenwell, a cul-de-sac. The asset sits on a very large, 1/2 acre plus parcel. The large footprint and ingress and egress from front and back make the asset "feel big" and comfortable for the tenancy - unlike a traditional, stacked building. Also, an onsite manager is not necessary since the 12 unit and 8 unit buildings sit on their own parcels. A significant cost savings annually. An estimated $250,000 in improvements during current ownership. Newer dual-pane windows and 30-year roof, both less than 5 years old as well as 2 newer mainlines and newer pavement throughout. 18 of the 20 units have upgraded, granite surfaces, fixtures etc. A seamless building to operate day one for a new buyer. Easy access to the 105, 710 and 605 Fwys and job centers nearby like Kaiser Permanente Hospital, Ramona Elementary, St. John Bosco High School, Bellflower Unified School District offices, as well as Walmart Supercenter.
FINANCIAL SUMMARY UNIT MIX & MONTHLY SCHEDULED Type Units Actual Total Market Total 1 Bed 1 Bath 17 $1,151 $19,575 $1,350 $22,950 2 Bed 1 Bath 1 $1,395 $1,395 $1,550 $1,550 2 Bed 1 Bath (Larger) 1 $1,450 $1,450 $1,600 $1,600 2 Bed 2 Bath 1 $1,550 $1,550 $1,750 $1,750 TOTALS 20 $23,970 $27,850 INVESTMENT SUMMARY Price: $4,399,000 Year Built: 1957 & 1960 Units: 20 Price/Unit: $219,950 RSF: 12,237 Price/RSF: $359.48 Lot Size: 27,033 sf Floors: 2 Parking Spaces: 20 APN: 6278-011-004;018 Cap Rate: 4.1% Market Cap Rate: 5.08% GRM: 15.21 Market GRM: 13.1 FINANCING SUMMARY Loan Amount: $2,600,000 Down Payment: $1,799,000 Loan Type: 5 Year Fixed Interest Rate: 4% Term: 30 years Monthly Payment: $12,413 DCR: 1.21 ANNUALIZED INCOME Description Actual Market Gross Potential Rent $287,640 $334,200 Less: Vacancy ($8,629) ($10,026) Misc. Income $1,540 $1,536 Effective Gross Income $280,551 $325,710 Less: Expenses ($100,179) ($102,041) Net Operating Income $180,372 $223,669 Debt Service ($148,954) ($148,954) Net Cash Flow after Debt Service $31,419 $74,715 Principal Reduction $45,787 $45,787 Total Return $77,205 $120,502 ANNUALIZED EXPENSES Description Actual Market Property Tax (New 1.098%) $48,301 $48,301 Building Insurance (2016 Actual) $4,691 $4,691 Electricity (2016 Actual) $1,112 $1,112 Gas (2016 Actual) $983 $983 Water & Sewer (2016 Actual) $8,936 $8,936 Trash (2016 Actual) $2,306 $2,306 Pest Control (2016 Actual) $935 $935 Gardening (2016 Actual) $1,970 $1,970 Advertising (2016 Actual) $1,414 $1,414 Offsite Management (2016 Actual) $13,025 $13,025 Maintenance & Repairs (Est.) $11,506 $13,368 Reserves (Ind. Std.) $5,000 $5,000 Total Expenses $100,179 $102,041 Expenses Per RSF $8.19 $8.34 Expenses Per Unit $5,009 $5,102
RENT ROLL Unit Type Rent Deposit 14925 A One Bed One Bath $1,175 $900 14925 B One Bed One Bath $1,175 $900 14925 C One Bed One Bath $1,145 $1,000 14925 D One Bed One Bath $1,225 $1,195 14925 E One Bed One Bath $1,100 $600 14925 F Two Bed One Bath $1,395 $1,000 14925 H One Bed One Bath $1,195 $1,793 14925 J Two Bed Two Bath $1,550 $1,200 14925 L One Bed One Bath $1,245 $1,500 14925 M One Bed One Bath $1,145 $700 14925 N One Bed One Bath $1,125 $600 14925 O One Bed One Bath $1,125 $600 9354 01 One Bed One Bath $1,100 $1,000 9354 02 One Bed One Bath $1,225 $1,900 9354 03 One Bed One Bath $1,100 $600 9354 04 One Bed One Bath $1,100 $900 9354 05 One Bed One Bath $1,100 $800 9354 06 One Bed One Bath $1,070 $600 9534 07 One Bed One Bath $1,225 $950 9354 08 Two Bed One Bath $1,450 $1,395 Total: $23,970 $20,133
RENT SURVEY Address Beds Baths Rent 9504 Ives St 1 1 $1,250 16113 Woodruff St 1 1 $1,295 16130 Eucalyptus Ave 1 1 $1,325 10453 Artesia Blvd 1 1 $1,345 16227 Eucalyptus Ave 1 1 $1,350 16208 Eucalyptus Ave 1 1 $1,350 17710 Woodruff Ave 1 1 $1,395 9963 Ramona St 1 1 $1,395 17908 Woodruff Ave 1 1 $1,499 Average: $1,356 16205 Cornuta Ave 2 1 $1,400 9334 Palm St 2 1 $1,495 9847 Cedar St 2 1 $1,495 8631 Rose St 2 1 $1,595 15735 Blaine Ave 2 1 $1,750 9451 Ramona St 2 1 $1,750 14500 McNab Ave 2 1 $1,800 Average: $1,612 10030 Rosecrans Ave 2 2 $1,550 9842 Ramona St 2 2 $1,695 16444 Cornuta Ave 2 2 $1,700 9308 Somerset Blvd 2 2 $1,795 9316-26 Palm St 2 2 $2,195 Average: $1,787
PROPERTY PHOTOS Front entrance on Clark Newer dual-pane sliders throughout
PROPERTY PHOTOS Large, landscaped, center courtyard Rear, 8 unit building off of Greenwell
PROPERTY PHOTOS Kaiser Permanente Bellflower Medical Center 5 blocks north on Clark Church one block north on Clark
PROPERTY PHOTOS Walmart Supercenter nearby at Rosecrans & Lakewood Across the street on Clark - low-density surroundings make demand for rentals high
LOCATION MAP
MAPS AND AERIALS and should be personally verified through personal inspection by and/or with the appropriate professionals.
REGIONAL MAP
DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile Male 19,715 (48.90 %) 145,113 (49.71 %) 392,684 (49.75 %) Female 20,600 (51.10 %) 146,788 (50.29 %) 396,656 (50.25 %) Total Population 40,315 291,901 789,340 Age Breakdown 1 Mile 3 Mile 5 Mile Ages 0-4 2,759 (6.84 %) 19,751 (6.77 %) 53,252 (6.75 %) Ages 5-9 3,284 (8.15 %) 23,688 (8.12 %) 63,804 (8.08 %) Ages 10-14 3,026 (7.51 %) 21,885 (7.50 %) 58,865 (8.08 %) Ages 15-19 2,956 (7.33 %) 21,387 (7.33 %) 57,901 (7.34 %) Ages 20-24 3,063 (7.60 %) 22,385 (7.67 %) 60,775 (7.70 %) Ages 25-29 3,088 (7.66 %) 22,427 (7.68 %) 61,007 (7.73 %) Ages 30-34 2,997 (7.43 %) 21,717 (7.44 %) 58,609 (7.43 %) Ages 35-39 2,938 (7.29 %) 21,386 (7.33 %) 56,713 (7.18 %) Ages 40-44 2,914 (7.23 %) 21,163 (7.25 %) 55,681 (7.05 %) Ages 45-49 2,867 (7.11 %) 20,861 (7.15 %) 54,864 (6.95 %) Ages 50-54 2,543 (6.31 %) 18,755 (6.43 %) 50,102 (6.35 %) Ages 55-59 2,187 (5.42 %) 16,030 (5.49 %) 43,544 (5.52 %) Ages 60-64 1,757 (4.36 %) 12,832 (4.40 %) 35,567 (4.51 %) Ages 65-69 1,332 (3.30 %) 9,652 (3.31 %) 27,019 (3.42 %) Ages 70-74 977 (2.42 %) 6,708 (2.30 %) 19,130 (2.42 %) Ages 75-79 643 (1.59 %) 4,348 (1.49 %) 12,646 (1.60 %) Ages 80-84 373 (0.93 %) 2,623 (0.90 %) 7,710 (0.98 %) Ages 85+ 611 (1.52 %) 4,303 (1.47 %) 12,151 (1.54 %)
DEMOGRAPHICS Household Income 1 Mile 3 Mile 5 Mile Median Income $55,546 $57,475 $57,435 Less than $10,000 737 4,052 9,889 $10,000 -$14,999 597 4,255 11,606 $15,000 - $19,999 608 4,404 11,124 $20,000 -$24,999 733 4,712 11,347 $25,000 - $29,999 596 4,399 10,899 $30,000 - $34,999 660 4,707 11,643 $35,000 - $39,999 632 4,385 11,837 $40,000 - $44,999 646 4,437 11,166 $45,000 - $49,999 589 3,934 9,974 $50,000 - $59,999 1,044 7,613 20,257 $60,000 - $74,999 1,183 9,699 25,415 $75,000 - $99,999 1,642 11,493 29,581 $100,000 - $124,999 961 7,157 19,390 $125,000 - $149,999 558 4,004 11,719 $150,000 - $199,999 405 3,089 9,180 Greater than $200,000 138 1,125 4,547 Housing 1 Mile 3 Mile 5 Mile Housing Units 12,190 87,460 231,720 Occupied Units 11,580 83,611 221,710 Owner Occupied Units 5,734 42,054 121,911 Renter Occupied Units 5,846 41,557 99,799 Vacant Units 610 3,849 10,010 Race Demographics 1 Mile 3 Mile 5 Mile Population Non Hispanic White 17,262 132,373 344,667 Population Black 3,469 23,996 64,320 Population Am In/Ak Nat 135 706 1,745