for sale 2001 grismer avenue - loopnet€¦ · burbank emplire center is a half mile away and is...

2001-2005PREMIERE 14-UNIT APARTMENT BUILDING IN PRIME BURBANK

2001grismer avenue

FOR SALE

BURBANK, CA

©2019 WESTMAC Commercial Brokerage Company. All Rights Reserved. WESTMAC Commercial Brokerage fully supports the principles of the Equal Opportunity Act. WESTMAC Commercial Brokerage Company and the WESTMAC Commercial Brokerage Company logo are registered service marks owned by WESTMAC Commercial Brokerage Company and may not be reproduced by any means or in any form whatsoever without written permission.

WESTMAC COMMERCIAL BROKERAGE COMPANY1515 Sepulveda Boulevard, Los Angeles, CA 90025310.478.7700 / www.westmac.comCompany DRE# 01096973

T.C. MACKER | PRESIDENT310.966.4352 | [email protected] # 01232033www.westlacommercial.com

JENNIFER MOSCOSO | ASSOCIATE310.966.4397 | [email protected] # 02044716www.westlacommercial.com

©2019 WESTMAC Commercial Brokerage Company. All Rights Reserved. WESTMAC Commercial Brokerage fully supports the principles of the Equal Opportunity Act. WESTMAC Commercial Brokerage Company and the WESTMAC Commercial Brokerage Company logo are registered service marks owned by WESTMAC Commercial Brokerage Company and may not be reproduced by any means or in any form whatsoever without written permission.

2001grismer avenue

FOR SALE

BURBANK, CA

executive

2001 grismer avenue 4

WESTMAC Commercial Brokerage Company is pleased to present 2001 Grismer Avenue for sale, a 14-unit multi-family asset located in the premiere, family-friendly City of Burbank, CA.

2001 Grismer Avenue is a two-story apartment building comprised of approximately 11,334 square feet situated on approximately 10,895 square feet of land. There is a subterranean parking garage with two dedicated parking spaces per unit (28 total). The property is zoned R4.

There are a total of 14-units in the building. The building is fully occupied. The current rents range from $1,750 – $2,090 per month with scheduled increases.

The property is located in Burbank, which is a highly desirable rental market and is known as “the media capital of the world”. It is home to Disney Studios, Warner Brothers, and a number of other large area employers. The city has over 80 restaurants, 30 theaters ,and 200 stores; its residents enjoy top ranked schools, easy access to the 5 and 134 freeways, and close proximity to Bob Hope Airport, Burbank Empire Center, Downtown Burbank, and Burbank Metro Link.

2001 Grismer Avenue provides buyers with stable cash flow and a strong long-term hold opportunity in a prime Burbank location.

STABLE HIGH OCCUPANCY MULTIFAMILY INVESTMENT OPPORTUNITY IN PRIME BURBANK

summary

3

5

summary


PROPERTY SUMMARYADDRESS 2001-2005 Grismer Avenue, Burbank, CA 91504

APN 2468-015-084BLDG SIZE +/- 11,334-square feetLAND SIZE +/- 10,895-square feet

BUILT 1987ZONING BUR4*

TYPE Multi-Family ApartmentsUNITS Fourteen (14)

STORIES Two (2)OCCUPANCY 100%

CONSTRUCTION Podium Building

PARKING Two (2) spaces side by side per unit (28 spaces)

FINANCIAL SUMMARYASKING PRICE $6,488,000

PRICE/UNIT $463,429/unit

PRICE/SF $572/SF

NOI +/- $220,008

CURRENT CAP 3.39%

CURRENT GRM 20

AERIAL VIEW

propertyprofile

7OFFERING MEMORANDUM | BURBANK, CA PARCEL MAP

AERIAL VIEW

EXPENSES ANNUALTAXES 1.15%

INSURANCE $4,848

UTILITIES $6,600

INTERNET $2,100

LANDSCAPING $1,800

TRASH $4,680

PEST CONTROL $1,600

MAINTENANCE $3,000

RESERVES $3,000

INCOME ANALYSIS AT PURCHASE PRICEGROSS POTENTIAL INCOME $321,120

LAUNDRY $1,128

GROSS EFFECTIVE INCOME $322,248

OPERATING EXPENSES $102,240

NET OPERATING INCOME $220,008

SUMMARY AT PURCHASE PRICEPRICE $6,488,000 CURRENT CAP 3.39%

PRICE/UNIT $463,429 GRM 20

PER/SF $572


financial summary

9OFFERING MEMORANDUM | BURBANK, CA

14-UNITS | APARTMENT BUILDINGRENT ROLL

UNIT UNIT MIX RENT/MONTH RENT/SF/MONTH RENT/YEAR

101 2+2 $1,800 $2.22 $21,600

102 2+2 $1,800 $2.22 $21,600

103 2+2 $1,995 $2.46 $23,940

104 2+2 $2,090 $2.58 $25,080

105 2+2 $1,800 $2.22 $21,600

106 2+2 $2,050 $2.53 $24,600

107 2+2 $2,035 $2.51 $24,420

201 2+2 $2,025 $2.50 $24,300

202 2+2 $1,750 $2.16 $21,000

203 2+2 $1,750 $2.16 $21,000

204 2+2 $2,090 $2.58 $25,080

205 2+2 $1,800.00 $2.22 $21,600.00

206 2+2 $1,750 $2.16 $21,000

207 2+2 $2,025 $2.50 $24,300

TOTALS $26,760 $321,120

• Rent Roll reflects month of December 2019. • Tenants pay directly for gas and electricity. Landlord pays water. City of Burbank handles trash.


14-UNITS | APARTMENT BUILDINGPROFORMA RENT ROLL

UNIT @ PURCHASE $ YR1 YR2 YR3 YR4 YR5

101 $21,600 $23,328 $25,194 $27,210 $29,387 $31,737

102 $21,600 $23,328 $25,194 $27,210 $29,387 $31,737

103 $23,940 $25,855 $27,924 $30,158 $32,570 $35,176

104 $25,080 $27,086 $29,253 $31,594 $34,121 $36,851

105 $21,600 $23,328 $25,194 $27,210 $29,387 $31,737

106 $24,600 $26,568 $28,693 $30,989 $33,468 $36,145

107 $24,420 $26,374 $28,483 $30,762 $33,223 $35,881

201 $24,300 $26,244 $28,344 $30,611 $33,060 $35,705

202 $21,000 $22,680 $24,494 $26,454 $28,570 $30,856

203 $21,000 $22,680 $24,494 $26,454 $28,570 $30,856

204 $25,080 $27,086 $29,253 $31,594 $34,121 $36,851

205 $21,600 $23,328 $25,194 $27,209 $29,386 $31,737

206 $21,000 $22,680 $24,494 $26,454 $28,570 $30,856

207 $24,300 $26,244 $28,344 $30,611 $33,060 $35,705

TOTALS $321,120 $346,810 $374,554 $404,519 $436,880 $471,831

• Proforma calculated assuming once yearly 5% increase in rents plus 3% increase for inflation.• Yearly expenses increased by 3% as an estimate of inflation.• Property Taxes increased by 2% / year.• AB 1482 allows a once yearly rent increase of 5% plus the local rate of inflation.

@ PURCHASE $ YR1 YR2

PRICE $6,488,000 $6,488,000 $6,488,000

PROJECTED NOI $220,008 $243,410 $268,814

PROJECTED RETURN 3.39% 3.75% 4.14%

YR3 YR4 YR5

PRICE $6,488,000 $6,488,000 $6,488,000

PROJECTED NOI $296,383 $326,292 $358,732

PROJECTED RETURN 4.57% 5.03% 5.53%


PROJECTED RETURN5 year

12

In the heart of Burbank, on a quiet street across from Earthwalk Park, this modern, secured apartment complex has an open courtyard and is conveniently located within walking distance to Neighborhood Market, Starbucks, a cycling studio, local restaurants and downtown Burbank. Burbank Emplire Center is a half mile away and is anchored by Walmart along with Lowes, REI, Target, Staples, and many others. All of the 14 units are 2 bedrooms plus 2 baths. The parking is located in the subterranean garage and includes two parking spaces per unit plus storage. There are coin-operated washer/dryers in the laundry room on site. The roof is in good shape (approx 10 years), all but 4 of the condensers have been replaced.

14-UNITS IN WELL-MAINTAINED HIGHLY SECURED APARTMENT BUILDING LOCATED IN EXCELLENT BURBANK NEIGHBORHOOD

property highlights


• PROPERTY HIGHLIGHTS• Prime Burbank Location

• Partially Renovated

• New Landscaping, Freshly Painted

• Corner Lot

• Pride of Ownership - Building Well Maintained

• Low Tenant Turnover

• Room for Upside

• AREA HIGHLIGHTS• Views of San Gabriel Mountains

• Family Friendly Residential Area - Earth Walk Park (playground) is across the street

• Short distance to Bob Hope Airport, Downtown Burbank and Burbank Empire Center

• Good Area Demographics/ Excellent Area Employers

• Densely populated area with ample amenities and close proximity to 5 Freeway

• Walk Score 75 (Very Walkable)


FEATURES• High Speed Internet• Air Conditioning• Heating• Ceiling Fans• Smoke Free• Cable Ready• Storage Units

BUILDING• Laundry Facilities• Controlled Access• Security System• Courtyard• Balcony• Manicured Landscaping• Video Security Cameras• Playground directly across

the street

GARAGE• Secured subterranean

parking garage• 28 spaces; Assigned

Parking. 2 side-by-side spaces per unit

• Includes storage space next to parking.

14 UNITS

EACH 2 BED | 2 BATH

building amenities

15

EARTHWALK PARK LOCATED DIRECTLY ACROSS THE STREET

16AMAZING VIEWS

17WELL=MANICURED LANDSCAPE

18

UNIT INTERIORS

19

UNIT INTERIORS


Burbank is located in the eastern part of the San Fernando Valley, in Los Angeles County, 12-miles from the downtown area of Los Angeles. Burbank has a total area of 17.4 square miles and is home to a number of movie studios and media companies, which are popular with tourists who come from all over the world to catch behind-the-scenes movie tours and talk show tapings. The San Gabriel Mountains, which are located to the Northwest of the city, provide a plethora of outdoor activities, and Downtown Burbank has all the eclectic eateries, cool shopping scenes and range of accommodations a person needs.

burbank, caMOVIE STUDIOS, OUTDOOR ADVENTURE, DINING & NIGHTLIFE

BURBANK METRO LINK

DISNEY’S ANIMATION STUDIOS


Burbank has long maintained ties to Warner Bros. and Disney, and is now home to hundreds of media and related support companies such as ABC, Cartoon-Network Studios, Nickelodeon Animation, Yahoo!, Clear Channel, and other post production, film processing, special effects, equipment rental and related businesses. As such, Burbank is happily referred to as the “Media Capital of the World.”

WALT DISNEY’S ANIMATION STUDIOS

WARNER BROSMOVIE STUDIO

“the media capital of the world”

burbank, ca

COMPANY EMPLOYEES TYPE

WARNER BROS. ENTERTAINMENT, INC. 5,000 Entertainment

THE WALT DISNEY COMPANY 3,900 Entertainment

PROVIDENCE SAINT JOSEPH MEDICAL CENTER 2,850 Medical

BOB HOPE AIRPORT 2,200 Aviation

BURBANK UNIFIED SCHOOL DISTRICT 1,800 Education

CITY OF BURBANK 1,600 Government

DELUXE SHARED SERVICES 1,540 Entertainment

top burbank employers

22

Burbank Empire Center

burbank

In late 2001, the Burbank Empire Center opened with aviation as the theme. The center, built at a cost of $250 million by Zelman Development Company, sits on Empire Avenue, former site of Lockheed’s top secret “Skunk Works”, and other Lockheed properties. By 2003, many of the center’s retailers and restaurants were among the top national performers in their franchise. The Burbank Empire Center contributes to over 11% of Burbank’s sales tax revenue, not including nearby Costco, which is part of the Empire Center development.

empire centerNATIONAL RETAILERS WITHIN WALKING DISTANCE

DISTANCE FROM2001 GRISMER< 0.5 MILES< 0.5 MILES

N

AMC 6

BURBANK TOWN CENTER

AMC 16

GRANVILLE

ISLANDS

BARNEY’S BEANERY

HOOTERS

SEARSSTARBUCKS

DON CUCO

WOKANO

STORY TAVERN

IN-N-OUT

ROSS

BABY DEPOT

FLAPPERS

ASHLEY HOMESTORE

KOPAN RAMEN

BURBANK POLICE DEPTGITANA

YMCA

DOMINO’S

CITIBANK

BARNES & NOBLE

CORNER BAKERY

ANOTHER BROKENEGG CAFE

GAP FACTORY

BUFFALO WILD WINGS

BED BATH BEYOND

PANERABREAD

WOOD RANCH BBQ & GRILL

BURBANK CITY HALL


downtown

DISTANCE FROM2001 GRISMER<1.5 MILES<1.5 MILES

DISTANCE FROM2001 GRISMER

N

burbankLocated in the heart of the media capital of the world, Downtown Burbank is a vibrant destination at the epicenter of the creative economy. Only 12 miles north of Downtown Los Angeles, the neighborhood provides the perfect combination of bustling activity and classic casual vibes, for a quintessential SoCal experience.


Burbank’s total population in 2016 was estimated at 105,110, a reported 4.8% increase from 2000. The population growth was influenced by Burbank’s expanding employment base, high quality public schools, and access to regional transportation routes and metropolitan Los Angeles.

ESTIMATED POPULATION (2016)

± 105,110PROJECTED

POPULATION (2040)

± 118,700ENTERTAINMENT

BASED COMPANIES

+700BOB HOPE AIRPORT

ANNUAL PASSENGERS

± $4.9MM

CITY OF BURBANK

market overview

demographics

BOB HOPE AIRPORT

SAN GABRIEL MOUNTAINS

According to the Southern California Association of Government’s 2016 Demographic and Growth Forecast, the population of Burbank is expected to reach about 118,700 by 2040, an increase of 15% from 2012.

Burbank’s growth has been tied to aviation and entertainment. Both industries came to Burbank because of its location and the available space. Bob Hope Airport caters to 4.9 million travelers per year on six major carriers, with more than 70 flights daily. Today, an estimated 100,000 people work in Burbank, which is home to multiple movie studios and entertainment companies.

BOB HOPE AIRPORT

N. HOLLYWOOD

BURBANK

STUDIOCITY

SUN VALLEY

LA CRESCENTA - MONTROSE

UNIVERSAL CITY

VAN NUYS

5-MILE5-MILE

3-MILE3-MILE

1-1-MILEMILE

GLENDALE

NORTHRIDGEPANORAMA

CITY

SHERMAN OAKS

ENCINO

RESEDA

EAGLEROCK

PASADENA


POPULATION 1-MILE 3-MILE 5-MILE

2019 ESTIMATED POPULATION 24,594 174,181 473,150

2024 PROJECTED POPULATION 25,068 176,336 480,443

HOUSEHOLDS 1-MILE 3-MILE 5-MILE

2019 ESTIMATED HOUSEHOLDS 9,138 62,449 174,877

2019 AVERAGE HH INCOME $100,190 $86,994 $87,088

2019 MEDIAN HH INCOME $75,592 $64,097 $62,809

BUSINESS 1-MILE 3-MILE 5-MILE

TOTAL BUSINESSES 869 8,427 20,498

# OF EMPLOYEES 13,739 96,492 237,150

DISTANCE FROM SUBJECT PROPERTY

radius map

2001 GRISMER AVENUE

N

1-3-5 miledemographics


CURRENT QUARTER UNITS VACANCY RATE ASKING RENT EFFECTIVE RENT

4 & 5 STAR 1,380 12.1% $2,737 $2,712

3 STAR 4,405 4.2$ $2,387 $2,376

1 & 2 STAR 9,186 3.1% $1,569 $1,562

SUBMARKET 14,971 4.3% $2,172 $2,160

Market analysis for the current quarter places the average rent for a 2 bedroom in Burbank for similar apartment buildings as roughly $2,375.

CURRENT MARKETANALYTICS SUMMARY

The underlying economic and demographic fundamentals in Burbank are strong. There is a dense concentration of entertainment-related employers in the self-styled “Media Capital of the World”, including The Disney Company’s headquarters, Warner Bros., ABC Television, and Nickelodeon. These companies provide well-paying jobs and underpin the strength of the local market. In 2017, the median household income of the 41.7k households in Burbank, CA grew to $69,118 from the previous year’s value of $67,317. The largest share of households, approximately 5.38k have an income in the $75k - $100k range.

Burbank’s high-income levels and residents’ propensity to rent create one of the most stable apartment submarkets in the metropolitan area. Rock bottom vacancies and supply constraints help to underpin the health of the Burbank multifamily market. Burbank’s average rents recently crested the $2,100/month mark. Unit prices grew steadily over the last three years, with an average nearly 40% higher than at the beginning of 2014. With consistent demand for housing and only one major project on the horizon, vacancy rates are expected to remain stable in the near term.

# OF HOUSEHOLDS± 41,700± 41,700

MEDIAN HH INCOME± $69,118± $69,118

market analytics


UNIT TYPE SIZE LOWEST TYPICAL PREMIUM

1 BED 680-685 SF $1,350 $2,129 $2,891

2 BED 996-998 SF $1,850 $2,761 $4,164

According to apartments.com, rental rates for similar apartments in the area are typically running around $2,761 a month for a 1,000-square foot 2 bedroom.

BY BEDROOM

MO

NTH

LY R

ENT

STUDIOSTUDIO 1 BED1 BED 2 BED2 BED 3 BED3 BED

market rent per unit

RENTAL RATESSIMILAR AREA APARTMENTS


2001grismer avenue

HOLLYWOOD

MIRACLE MILE

BURBANK

LAX

DTLA

BEVERLY HILLS

VENICE

BEL AIR

CULVER CITY

STUDIO CITY

GLENDALE

INGLEWOOD

WESTWOOD

LOS FELIZ

KOREATOWN

USCJEFFERSON

VERNON

PLAYA VISTA

ENCINO

VAN NUYS

N. HOLLYWOOD

PASADENA

NDISTANCE FROM2001 GRISMER

18 MILES


10 MILES


7 MILES

SANTA MONICA


15 MILES


2001grismer avenue

This offering has been prepared solely for informational purposes. While the information contained herein is from sources deemed reliable, it has not been independently verified by WESTMAC Commercial Brokerage Company or by the Seller.

This document is provided subject to errors, omissions and changes in the information and is subject to modification or withdrawal. The contents herein are confidential and are not to be reproduced without the express written consent.

Interested buyers should be aware that the Seller is selling the Property “AS IS” CONDITION WITH ALL FAULTS, WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE.

The Seller reserves the right to withdraw the Property being marketed at any time without notice, to reject all offers, and to accept any offer without regard to the relative price and terms of any other offer.

Prospective buyers shall be responsible for their costs and expenses of investigating the Property and all other expenses, professional or otherwise, incurred by them.

DISCLAIMER

INFORMATION CONTACT:for more

2001grismer avenue

FOR SALE

BURBANK, CA

WESTMAC COMMERCIAL BROKERAGE COMPANY | 1515 Sepulveda Blvd., Los Angeles, CA 90025 | 310.478.7700 | www.westmac.com | DRE# 01096973

T.C. MACKER, [email protected] # 01232033www.westlacommercial.com

JENNIFER [email protected] # 02044716www.westlacommercial.com

for sale 2001 grismer avenue - loopnet€¦ · burbank emplire center is a half mile away and is...

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