10760 hortense street - matthews · 2019-05-16 · 10760 hortense street presents a unique...

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O F F E R I N G M E M O R A N D U M

10760 HORTENSE STREET T O L U C A L A K E , C A

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DANIEL WITHERSSenior Vice President

[email protected] (818) 923-6107mobile (310) 365-5054 Lic # 01325901 (CA)

BRANDON DICKER Associate - Multifamily


EXCLUSIVELY LISTED BY


PROPERT Y OVERVIEW

AREA OVERVIEW

FINANCIAL OVERVIEW

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0 1SECT ION

DESCRIPTION10760 Hortense Street presents a unique opportunity to capitalize on a well maintained

multifamily property in one of Los Angeles’ most popular rental markets, Toluca Lake.

Built in 1977 the building has been maintained very well and has a quiet and secluded feel.

The property contains a gated entry and tenants have the luxury of wall unit AC’s, on-site

laundry, open and tuck-under parking, and a lush courtyard setting. Tenants are provided

with the essentials and amenities of living in a prime neighborhood.

The building is eight units which include two studio units, four one-bedroom units, and two

two-bedroom units. This is perfect for the neighborhood, which is filled with a range of

professionals from all different backgrounds. The property is located between Lankershim

Boulevard and Cahuenga Blvd and has convenient access to the 101, 134, and 170 freeways.

In addition, this property offers residents a close proximity to shopping, dining, and

entertainment offered in North Hollywood, Studio City, and Toluca Lake. 10760 Hortense

Street is truly a unique property in one of the most exciting rental markets in Los Angeles.

PROPERTY OVERVIEW

One of Los Angeles’ Most Popular Rental Markets

8 units: 4-One bedrooms, 2-Two Bedrooms, and 2 Studio

Secured Gated Entry

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AREA OVERVIEW

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MAJOR EMPLOYERS

ECONOMYThe LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism.

LOS ANGELES MSA As the second largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California’s original 27 counties, is one of the nation’s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California’s population. The area continues to grow, especially given the vigorous residential development in downtown LA.Famously known for a heavy entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United States. The Los Angeles-Orange County metro area alone has an enormous economy with an estimated $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas.

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POPULATION 1-MILE 3-MILE 5-MILE2022 Projection 43,820 225,876 643,5012017 Estimate 43,820 225,876 643,5012010 Census 37,652 204,117 589,945Growth 2017-2022 6.50% 4.59% 4.02%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE2022 Projection 22,851 99,139 278,2592017 Estimate 21,383 94,390 266,6082010 Census 19,437 88,553 252,785Growth 2017 - 2022 6.87% 5.03% 4.37%

INCOME 1-MILE 3-MILE 5-MILE2017 AverageHousehold Income $84,253 $97,873 $93,425

2017 MedianHousehold Income $62,256 $64,168 $59,511

DEMOGRAPHICS

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TOLUCA LAKEToluca Lake is a neighborhood in Los Angeles, located in the San Fernando Valley region just 12 miles northwest of Downtown. Toluca Lake is an island of suburban tranquility of LA’s studio district. The community has become highly popular with film industry professionals due to its close proximity to Studio City, Universal City, Burbank Studios, and Warner Bros. Studios. The trendy NoHo Arts District sits just up Lankershim Boulevard, allowing residents to be close to eclectic restaurants, vintage shops, and performance venues. There are also plenty of outdoor options, with Lakeside Golf Club positioned on the south end of the neighborhood and Griffith Park just a few blocks to the east.

TRANSPORTATIONThe Bob Hope Airport is located nearby and new metro stations have been added for the Red and Orange line, transforming the area into a regional hub for the entire valley. On-Ramps for both the 134 and 101 Freeways are located just blocks from the subject property.

> Metro Red Line - 1.0 Miles> 224 Metro Local Line - 0.2 Miles> 155 Metro Local Line - 0.3 Miles > 155/656 Metro Local Line - 0.3 Miles > Bob Hope Airport - 3.7 Miles > Ventura Freeway - 0.5 Miles > 101 Freeway - 0.7 Miles

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03SECT IO N

Comparables

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RENT COMPARABLES

ADDRESS Unit Type Rent

10760 HORTENSE STREET Studio $1,086

10818 BLIX STREET Studio $1,250

10926 HORTENSE STREET Studio $1,395

Average $1,323


10760 HORTENSE STREET 2+1 $1,299

10834 BLIX STREET 2+2 $2,375

10746 BLIX STREET 2+2 $2,250

10740 BLIX STREET 2+2 $2,350

10728 CAMARILLO STREET 2+1 $1,700

Average $2,169




10850 KLING STREET 1+1 $1,695

10901 BLIX STREET 1+1 $1,695

10821 BLIX STREET 1+1 $1,800

4604 CAHUENGA BLVD 1+1 $1,695

Average $1,721

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Address Yr Built Sq Ft Price Per Unit Per Foot Cap Rate GRM UnitsStudio

Mix#-1Bd #-2Bd #3-Bd

10760 Hortense St Toluca Lake

1977 5,269 $2,000,000 $250,000 $379.58 3.35% 17.37 8 2 4 2 0

12301-12319 Magnolia Blvd Valley Village

1942 8,190 $4,200,000 $350,000 $512.82 - - 12 1 - - -

11012 Fruitland Dr Studio City

1964 7,834 $3,118,000 $346,444 $398.01 3.5% 14 9 1 3 4 1

12642 Moorpark St Studio City

1962 9,600 $2,300,000 $328,571 $239.58 3.51% 16.88 7 - - 6 -

4824 Satsuma Ave North Hollywood

1963 11,336 $3,160,000 $316,000 $278.76 - 15.54 10 - 4 6 -

10311 Riverside Dr Toluca Lake

1971 42,309 $11,900,000 $305,128 $281.26 3.45% 15.85 39 - - 12 -

11246 Otsego St North Hollywood

1957 3,540 $1,800,000 $300,000 $508.47 - - 6 - 6 - -

4909 Coldwater Canyon Ave Sherman Oaks

1952 5,412 $1,550,000 $258,333 $286.40 2.42% 19.97 6 8 4 2 -

11135-11137 Camarillo St North Hollywood

1950 5,700 $2,000,000 $250,000 $350.88 3.01% 13.72 8 1 - - -

10867 Fruitland Dr Studio City, CA

1936 3,091 $1,250,000 $250,000 $404.39 3.00% 22 5 5 0 0 0

4173 Fair Ave Studio City, CA

1975 5,371 $1,782,000 $356,400 $331.78 3.78% 18 5 0 5 0 0

Averages 1957 9804 $3,132,273 $299,398 $349.79 3.31% 16.95 10

SALES COMPARABLES

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Address Yr Built Sq Ft Price Per Unit Per Foot Cap Rate GRM UnitsStudio

Mix#-1Bd #-2Bd #3-Bd

10760 Hortense St Toluca Lake

1977 5,269 $2,000,000 $250,000 $379.58 3.35% 17.37 8 2 4 2 0

12301-12319 Magnolia Blvd Valley Village

1942 8,190 $4,200,000 $350,000 $512.82 - - 12 1 - - -

11012 Fruitland Dr Studio City

1964 7,834 $3,118,000 $346,444 $398.01 3.5% 14 9 1 3 4 1

12642 Moorpark St Studio City

1962 9,600 $2,300,000 $328,571 $239.58 3.51% 16.88 7 - - 6 -

4824 Satsuma Ave North Hollywood

1963 11,336 $3,160,000 $316,000 $278.76 - 15.54 10 - 4 6 -

10311 Riverside Dr Toluca Lake

1971 42,309 $11,900,000 $305,128 $281.26 3.45% 15.85 39 - - 12 -

11246 Otsego St North Hollywood

1957 3,540 $1,800,000 $300,000 $508.47 - - 6 - 6 - -

4909 Coldwater Canyon Ave Sherman Oaks

1952 5,412 $1,550,000 $258,333 $286.40 2.42% 19.97 6 8 4 2 -

11135-11137 Camarillo St North Hollywood

1950 5,700 $2,000,000 $250,000 $350.88 3.01% 13.72 8 1 - - -

10867 Fruitland Dr Studio City, CA

1936 3,091 $1,250,000 $250,000 $404.39 3.00% 22 5 5 0 0 0

4173 Fair Ave Studio City, CA

1975 5,371 $1,782,000 $356,400 $331.78 3.78% 18 5 0 5 0 0

Averages 1957 9804 $3,132,273 $299,398 $349.79 3.31% 16.95 10

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UNIT MIX

Total Units Unit Mix Unit Mix %Current Avg

RentCurrent

Monthly RentMarket Rent

Market Monthly Rent

2 Studio 25% $1,086 $2,172 $1,250 $2,5004 1+1 50% $1,193 $4,772 $1,700 $6,8002 2+1 25% $1,299 $2,598 $1,900 $3,800

Scheduled Monthly Rent: $9,543 $13,100

Scheduled Yearly Rent: $114,515 $157,200

ANNUALIZED OPERATING DATA

Current MarketScheduled Gross Income: $114,515 $157,200 37% Upside Less Vacancy Reserve: 3.0% $3,435 3.0% $4,716 *

Laundry Income: $600 $600Gross Operating Income: $111,679 $153,084Expenses: 38.9% $44,592 29.4% $46,248 *

Net Operating Income: $67,088 $106,836

SECT ION

Offering Price: $2,000,000

Property: 10760 Hortense StreetToluca Lake, CA 91602

Price Per Unit: $250,000

Price Per S.F.: $379.58

Cap (current / market): 3.35% / 5.34%

GRM (current / market): 17.37 / 12.67

Number of Units: 8

Year Built: 1977

APN: 2421-030-003

Gross Sq. Ft.: 5,269

Average S.F. Per Unit: 659

Lot Size (Acres): 0.21

FINANCIAL OVERVIEW

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PRO FORMA ANNUAL OPERATING EXPENSES

Current Per Unit % of SGITaxes 1.193% x Sale Price $23,861 $2,983 20.8%

Off-Site Management 4.0% x GOI $4,467 $558 3.9%

Insurance $0.32 x GSF $1,704 $213 1.5%

Trash / Pest Control $300 x Units $2,400 $300 2.1%

Repairs & Maintenance $600 x Units $4,800 $600 4.2%

Utilities $600 x Units $4,800 $600 4.2%

Gardener $120 x Units $960 $120 0.8%

Reserves $200 x Units $1,600 $200 1.4%

Total Expenses $44,592 $5,574 38.9%

Current Per Unit % of SGINon-controllable expenses: Taxes, Ins: $27,965 $3,496 27.7%Total Expense without Taxes $20,205 $2,526 20.0%

RENT ROLL

Unit Mix Rent Market Rent1 Studio $922.41 $1,250

2 2+1 $1,068.61 $1,900

3 1+1 $1,385.00 $1,700

4 Studio $1,250.00 $1,700

5 2+1 $1,529.82 $1,900

6 1+1 $1,166.99 $1,700

7 1+1 $946.99 $1,700

8 1+1 $1,273.08 $1,700

Totals $9,543 $13,550Averages $1,193 $1,694

**Current Rents will be effective as of January 2018

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This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of located at 10760 Hortense Street, Toluca Lake, CA (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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DANIEL WITHERSSenior Vice President


BRANDON DICKER Associate - Multifamily


EXCLUSIVELY LISTED BY


O F F E R I N G M E M O R A N D U M

10760 hortense street - matthews · 2019-05-16 · 10760 hortense street presents a unique...

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