1035 n gardner street, west hollywood, ca 90046 · 2020. 5. 6. · financial summary 1035 n gardner...

9-Units Multifamily Investment Opportunity in West Hollywood

1035 N Gardner Street, West Hollywood, CA 90046

https://vimeo.com/395064633

Exclusive Listing Agents:

RICH JOHNSMultifamily Investment [email protected]

CALBRE LIC#01432215

NICK ASTRUPGAARDMultifamily Investment [email protected]

CALBRE LIC. #01893466

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.Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to ac-curacy or completeness of the any materials or information provided, 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 profession-als. 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 transactionAll 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 increased 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 com-plies 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 KW Commercial in compliance with all applicable fair housing and equal opportunity laws. We obtained the 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 current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

CONFIDENTIALITY AGREEMENT

CONTENTS

04121622

PROPERTY DESCRIPTION

MARKET OVERVIEW

MARKET COMPARABLES

EXECUTIVE SUMMARY

P r o p e r t yDescr ipt ion

THE OFFERINGKW Commercial is pleased to offer for sale, for the first time in approximately 50 years, 1035 North Gardner Street, a multi-family apartment community located in West Hollywood, CA (90046).

1035 North Gardner Street, consists of 9 apartment units, built in 1956 and including +/- 5,969 SF of improvements and boasting an exceptional unit composition of Six (6) One Bedroom / One Bath, Two (2) Singles and One (1) Two Bedroom / One Bath apartment homes.

1035 North Gardner features large windows for abundant natural light, mature landscaping along walkways for added privacy, onsite laundry facilities and parking for 8-9 total vehicles.

The apartment homes are individually metered for gas and electrical utilities, thus keeping the owner expenses very low.

Select and significant interior upgrades historically includes new stainless appliances, granite countertops, tiled and hardwood floors, wardrobe, lighting and updated bathrooms, making this classic 1950’s building ready for today’s lifestyle.

The asset is located close to exceptional area amenities with nearby world-class dining, shopping, entertainment and nightlife venues along the renowned Santa Monica Blvd., Beverly Blvd., and Fairfax Avenues.

The property also offers convenient access to business services and major employment centers throughout West Hollywood and the Fairfax District. There is substantial rental upside based on current market rents vs existing rents thus representing a strong long term investment opportunity in a strong Los Angeles location.

THE OPPORTUNITY: • Available For Sale For The First Time in Over 50 Years

• Exceptional 9 Unit Multifamily in a World-Class West Hollywood Location

• Excellent Unit Composition with Six (6) One Bedroom - One Bath, Two (2) Single & One (1) Two Bedroom - One Bath Apartment Homes

• Excellent Opportunity to Attract from a Well-Healed Renter Demographic

• Location Provides Access to Countless Dining, Shopping, Nightlife and Entertainment Venues

• Tandem Parking for 8-9 Total Vehicles

• Separate Gas and Electrical Metering Provide Low Expenses

• Significant Rental Upside

INVESTMENT

HIGHLIGHTS

LOCATION:Located just one block south of Santa Monica Blvd. and between Fairfax Blvd. & La Brea Avenue residents are offered a multitude of restaurants, cafés, shopping and entertainment venues all of which offer character to the social, cultural and business life of the economically vibrant and world renowned West Hollywood.

In an effort to ensure a healthy business community, West Hollywood has formed three Business Improvement Districts (BID); the Avenue of Arts and Design, the Sunset Strip Business Association and the West Hollywood Marketing and Visitors Bureau.

The Avenue of Arts and Design is one of the premier locations for art, design, restaurants, boutiques, and specialty retail. The Sunset Strip Business Association promotes the area’s unique cultural and entertainment offerings. The West Hollywood Marketing and Visitors Bureau represents the City’s many luxury hotels.

West Hollywood features a vibrant and diverse business community in addition to being convenient to Los Angeles’ other major commercial districts; Beverly Hills, Downtown Los Angeles, and Century City. West Hollywood’s two major industry sectors are Services, Hotels, Motion Pictures, and Health Services and Retail; Restaurants and Bars, Food Stores, and Miscellaneous Retail.

1035 N Gardner Street West Hollywood

CA 90046

Exterior

Interior

E x e c u t i v eSummary

FINANCIAL SUMMARY 1035 N Gardner Street, West Hollywood, CA 90046

BUILDING DATA

Units 9

Year Built 1956

Lot Sq Ft 6,373

Bldg Gross Sq Ft 5,969

Parking Spaces 8-9

ESTIMATED ANNUALIZED EXPENSES

New Property Taxes $43,425

Utilities (DWP & Gas) $5,400

Property Insurance $2,686

Landscaping $900

Repairs & Maintenance $5,850

Rental Registration $1,296

Pest Control $900

Total Estimated Expenses $60,457

SOURCE OF INCOME CURRENT RENTMARKET RENT Post Renovation

# of Units Unit Type Avg. Rent Total Avg. Rent Total

2 Singles $1,038.46 $3,426.80 $1,595 $3,190

1 2 Bed / 1 Bath $1,918.00 $4,743.00 $2,595 $2,595

6 1 Bed / 1 Bath $1,404.30 $3,988.00 $2,250 $13,500

Total Rental Income $12,420.70 $19,285

Laundry Income Estimate (building owned)

$100 $100

Total Annual Income 150,248.40 $232,620

EST. ANNUALIZED OPERATING DATA CURRENT MARKET

Scheduled Gross Income $150,248 $232,620

Less Vacancy 2.0% ($3,005) 2.0% ($4,652)

Gross Operating Income $147,243 $227,968

Less Expenses -41.1% ($60,457) 26% ($60,457)

Net Operating Income $86,786 $167,511

NOTATIONS:

1. Repairs & Maintenance: Repairs and Maintenance is underwritten as a pro forma expense of $650 / unit / year /post-renovation.

2. Contract Service: Expenses are projected for Pest Control ($75/mo), Landscaping ($75/mo) based on market rates.

3. Utilities: Estimated at $600 / unit / year based on market rates. Separately metered for Gas & Electrical utilities.

4. Real Estate Taxes: Taxes have been underwritten based upon a tax rate of 1.15%.

5. Property Insurance: Pro Forma insurance expense is based upon $0.45/SF/Year.

6. Laundry Equipment: Owned by building / not leased

FINANCIAL INDICATORS

Offering Price $2,895,000

Current CAP 3.0%

Market CAP 5.8%

Current GRM 19.27

Market GRM 12.45

Cost Per Unit $321,667

Price per SF $485.01

Expenses Per Unit -$6,717

Expenses Per Sq Ft ($10.13)

RENT ROLL 1035 N Gardner Street, West Hollywood, CA 90046

UNIT STATUS UNIT TYPE Current Rent Market Rent Post Renovation

1 Leased One Bed | One Bath $1,235.82 $2,250

2 Leased One Bed | One Bath $868.12 $2,250

3 Leased Large Single $962.66 $1,595


5 Leased Two Bed | One Bath $1,918.00 $2,595



8 Leased Large Single $1,114.26 $1,595


$12,420.70 $19,285

1035 N Gardner Street, West Hollywood, CA 90046

M a r k e tO v e r v i e w

City of West HollywoodWith a walk score of 94, the property is within close proximity to popular destinations such as The Hudson, Connie & Ted’s, Trader Joe’s, 8000 Sunset, and countless local amenities along Santa Monica Boulevard, Sunset Boulevard, and La Cienega Boulevard.

West Hollywood (“WeHo”) is located in the eastern portion of the West Los Angeles area. The city is bounded by the community of Hollywood to the north, east, and south; and the city of Beverly Hills to the west.

Today, West Hollywood is a top travel destination among the entertainment industry and LGBT global community. West Hollywood’s stylish hotels attract the well-traveled with their dedication to providing premium service and personalized experiences. The scene is densely packed into 1.9 walkable square miles, including a vast culinary landscape, the Sunset Strip’s notorious nightlife, Pacific Design Center (PDC) and designer flag-ships lining The West Hollywood Design District, celebrity hot spots, global annual events, premier spas and fitness, entertainment and much more.

AccessibilityBest Part of West Hollywood’s appeal is its connectivity with other desirable neighborhoods.Because of its location amongst the city highway system, it’s easy to get from West Hollywood to other parts of the city quickly and conveniently. Residents in search of apartments for rent or houses for rent can also use the LA Transit system to get around the neighborhood or the greater metro area. The neighborhood is also very pedestrian friendly.

SURROUNDING AMENETIES

1 The Hudson2 Connie and Ted’s3 Omi Sushi4 Traktir Restaurant5 Yogurtland6 Galanga Thai Fusion7 The Griddle Cafe8 The Surly Goat9 The Black Bicycle Cafe

1 Plummer Park2 Pointsettia Playground3 Rosewood Park4 Kings Road Park

1 Employees Only2 Gold Coast Bar3 Fubar4 The Surly Goat5 Winston’s Bar6 Bar Lubitsch7 The Body Shop8 Voyeur9 The Laugh Factory

R E S TAU R A N T S & M A R K E T S R E C R E AT I O NN I G H T L I F E

1035N GARDNER

STREET

11

23

4

54

6523 6

2

3

1

4

10 Cafe If11 Salt’s Cure12 Whole Foods13 The Indian Kitchen14 Odessa Groceries15 Gelson’s Market16 Trader Joe’s17 Bristol Farms18 Marco’s Trattoria

7

8

9

10

15

1617

18

111213

14

7

8

9

Connie and Ted’s

The Hudson

Traktir Restaurant

Omi Sushi

The Indian Kitchen

Yogurtland

Marco’s Trattoria

Barbette

Irv’s Burgers

Flowering Tree

Delilah

Fatburger

Izakaya

Los Tacos

Pink Dot

Los Tacos

Gold Coast Bar

Employees Only

Fubar

Voyeur

The Surly Goat

The Body Shop

North

Winston’s Bar

Scene Lounge

THE HUDSON OMI SUSHI

CONNIE AND TED’S

Restaurants and Bars Groceries and MarketsGelson’s Market

Whole Foods Market

Trader Joe’s

Odessa Grocery

Bristol Farms Hollywood

West Hollywood Farmers Market

A WALKABLETR A NSIT - OR I E NTE D COM M U N IT Y

The subject property are also within walking distance of a variety of highly regarded dining experiences, cafés,

boutique shopping, entertainment, and nightlife options including notable popular destinations such as The

Hudson, Connie and Ted’s, and Omi Sushi in addition to the local everyday necessities located along Sunset

Boulevard, Santa Monica Blvd, and North Fairfax Avenue.

1035 N Gardner Street has a staggering 94 Walk Score and 58 Transit Score, a rare combination for apartment buildings in Southern California.

WALK SCORE“WALKER’S PARADISE”

94 58WALK SCORE“GOOD TRANSIT”

Daily errands do not require a car.

Many nearby public transportation options.

Entertainment & Shopping

The Laugh Factory

Coast Playhouse

Studs Theatre

DGA Theater Complex

Lexander

The Ruby LA

Lance Lee Davis

8159 SUNSETFrank Gehry-designed mixed use project with retail, residential and 27,000 SF central plaza.SUNSET TIMEIn the former House of Blues location,35,000 SF of retail space, a nightclub hotel rooms, condos and apartments.8500 SUNSET RESIDENCESTwo eight-story towers at La Cienega and Sunset.8950 SUNSET169-room Boutique hotel with residenc-es, a rooftop pool and restaurants.WEST HOLLYWOOD EDITION150-room Ian Schrager hotel, includinghigh-end condos and lush landscaping.

ROBERTSON LANERobertson Lane plans to create a new pedestrian pathway connecting the WestHollywood Design District, Boystown and West Hollywood Park. In addition to a 30 foot wide pedestrian lane, the development plans to feature restaurants, bars, retail and nightlife, 241 hotel rooms, over 1,000 parking spaces as well as public open spaces.

SUNSET BOULEVARD DEVELOPMENT

WEST HOLLYWOOD PARKDEVELOPMENT

New Developments

1035 N Gardner StreetWest Hollywood, CA 90046

LA BREA BOULEVARD

DEVELOPMENTS

LA BREA/WILLOUGHBYFour-story mixed-use project with 33,500 SF of ground floor retail and 179 residential units.LA BREA/FOUNTAINSix-story mixed-use project with 18,000 SF of retail and 187 apart-ments in the old Jon’s market space.LA BREA/LEXINGTONFive-story, 32-unit building of affordable housing.LA BREA/SANTA MONICASix-story, mixed-use project with 12,800 SF of retail space and 184 apartments.

M a r k e tC o m p a r a b l e s

1035 N Gardner Street

COMPARABLESRENT

1)

2)

3)

4)

5)

6)

7)

8)

9)

10)

11)

12)

13)

939 N Stanley Ave

938 N Spaulding Ave

936 N Sierra Bonita Ave

805-807 N Poinsettia Pl

1001 N Curson Ave

7705 Romaine St

1027 N Stanley Ave

7935 N Genesee Ave

7607 Norton Ave

920 N Orange Grove Ave

7705 Hampton Ave

522-526 N Alta Vista Blvd

7607 Fountain Ave

COMPARABLESRENT

SINGLE ONE BEDROOM TWO BEDROOMS

Property UnitsYear Built Owner/Manager Rent Rent Rent

1035 N Gardner StreetWest Hollywood, CA 90046

9 1956 Private OwnerOwner Managed

$1,038.46 $1,404.30 $1,918.00

1 939 N Stanley Ave West Hollywood, CA 90046


$1,600 - -

2 938 N Spaulding Ave West Hollywood, CA 90046


$1,600 - -

3 936 N Sierra Bonita Ave West Hollywood, CA 90046


$1,595 - -

4 805-807 N Poinsettia Pl Los Angeles, CA 90046


$1,695 - -

5 1001 N Curson Ave West Hollywood, CA 90046

12 - Private OwnerOwner Managed

- $2,295 -

6 7705 Romaine St West Hollywood, CA 90046


- $2,299 -

7 1027 N Stanley Ave West Hollywood, CA 90046


- $2,394 -

8 935 N Genesee Ave West Hollywood, CA 90046


- $2,395 -

9 7607 Norton Ave West Hollywood, CA 90046


- $2,390 -

10 920 N Orange Grove Ave West Hollywood, CA 90046


- - $2,650

11 7705 Hampton Ave West Hollywood, CA 90046


$2,595

12 522-526 N Alta Vista Blvd Los Angeles, CA 90036


$2,595

13 7607 Fountain Ave Los Angeles, CA 90046


$2,695

AVERAGE: $1,623 $2,355 $2,634

HIGH: $1,695 $2,295 $2,695

LOW: $1,595 $2,395 $2,595

Exclusive Listing Agents:RICH JOHNSMultifamily Investment [email protected]

CALBRE LIC#01432215

NICK ASTRUPGAARDMultifamily Investment [email protected]

CALBRE LIC. #01893466

1035 n gardner street, west hollywood, ca 90046 · 2020. 5. 6. · financial summary 1035 n gardner...

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