horner street, -...

A 12-UnitApartment Opportunity

6125Horner Street,

Los Angeles, CA 90035

William JamesMulti-Family Investment Sales

DirectorOffice: (310) 593-9867Mobile: (310) 600-9858

Will iam.James@cbcadvisors .comLicense: CA # 01734419

Tom JonssonMulti-Family Investment Sales

Managing PrincipalOffice: (310) 593-9866Mobile: (310) 966-0122

Tom.Jonsson@cbcadvisors .comLicense: CA # 01755842

CONFIDENTIALITY AGREEMENT

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party intended to be receiving it from CBC Advisors and should not be made available to any other person or entity without the written consent of CBC Advisors. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation nor shall any information contained herein be relied upon in connection with such due diligence. CBC Advisors has not made any investigation, and makes no warranty or representation, with respect to any aspect of the subject property or business, including but not limited to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, CBC Advisors has not verified, and will not verify, any of the information contained herein, nor has CBC Advisors conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein and nothing contained herein is intended to be relied upon in any manner in connection with the purchase of the subject property.

CBC Advisors is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of CBC Advisors, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of CBC Advisors, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

SECTIONS

6125 Horner Street, Los Angeles, CA 90035

6125

I PROPERTY DESCRIPTION

II FINANCIAL ANALYSIS

Horner Street,


I. PROPERTY DESCRIPTION



6125 Horner Street is a 12-unit apartment building well located in Los Angeles, CA. This stucco and wood-frame construction apartment building was built in 1959 and contains an excellent unit mix consisting of five (5) one-bedroom/one-bathroom units, three (3) one-bedroom/one-bathroom units with balconies, two (2) two-bedroom/two-bathroom units with balconies & two (2) three bedroom/two-bathroom units with balconies. The property also has one non-conforming storage/one-bedroom unit that will be delivered vacant. With its’ close proximity to both Pico & La Cienega this property is centrally located near schools, shopping, entertainment and many other draws of Los Angeles, including Robertson Boulevard, Beverly Hills and The Grove. In addition, due to the property’s convenient access to freeways and bus lines, the area serves as a strong draw from a diversified tenant base. As a result, owners find that they have historically operated with low vacancies rates and strong rent growth. 6125 Horner is attractive for many investors due to its aforementioned stable return and long term growth in both cash flow and value.

INVESTMENT OVERVIEW

» Excellent Unit Mix with Large Units & Rental Upsides

» Great Location Close to Pico & La Cienega Boulevard

» Some Units Have Balconies

» Secure Building; On-Site Parking & Laundry


PROPERTY INFORMATIONPROPERTY INFORMATION

Property Address 6125 Horner Street, Los Angeles, CA 90035

Assessor’s Parcel Number 5068-005-017

Land Use Apartments

Buildings 1

Stories 3

Zoning LARD1.5

Year Built 1959

SITE DESCRIPTION

Units 12

Rentable Square Feet 10,466

Lot Size (SF) 10,215

Parking 12 Parking Spaces (8 of which are tandem)

UTILITIES

Water Master Metered - LADWP

Sewer Master Metered - LADWP

Electric Separately Metered - LADWP

Gas Separately Metered - The Gas Company

CONSTRUCTION

Framing Wood

Exterior Stucco

Roof Slight Pitch

MECHANICAL

Laundry Common Area

*Property is subject of City of Los Angeles Soft Story Retrofit Ordinance.


PROPERTY PHOTOS

REGIONAL MAP

LOCATION MAP



AERIAL VIEW

II. FINANCIAL ANALYSIS


CURRENT MARKET

Unit No.

Status Unit Type Monthly Rent Annual Rent Monthly Rent Annual Rent Move In

1 Occupied 3 Bed 2 Bath + Balcony $2,030 $24,358 $3,400 $40,800 6/1/2011

2 Occupied 1 Bed 1 Bath $1,695 $20,340 $2,000 $24,000 4/13/2017











TOTAL $19,782 $237,384 $29,000 $348,000

RENT ROLL

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. © 2018 CBC Advisors


Income Current Per Unit Pro Forma Per Unit

Scheduled Rent Income $237,384 $19,782 $348,000 $29,000

Other Income $1,000 $83 $1,000 $83

GROSS POTENTIAL INCOME $238,384 $19,865 $349,000 $29,083

Vacancy/Collection Allowance (GPR) 3.0% / $7,122 $594 5.0% / $17,400 $1,450

EFFECTIVE GROSS INCOME $231,262 $19,272 $331,600 $27,633

Expenses

Taxes (1.25%) $56,188 $4,682 $56,188 $4,682

Insurance ($0.45/sq. ft. ) $4,710 $392 $4,710 $392

Utilities - LADWP & SoCalGas (2017) $5,761 $480 $5,761 $480

Repairs & Maintenance ($500/Unit) $6,000 $500 $6,000 $500

Management Fee (5% of EGI) $11,563 $964 $16,580 $1,382

Cleaning/Janitorial ($100/month) $1,200 $100 $1,200 $100

Trash ($260.02/month) $3,120 $260 $3,120 $260

Gardener ($100/month) $1,200 $100 $1,200 $100

Pest Control (Estimated) $500 $42 $500 $42

Miscelleanous (Intercom, License) $2,000 $167 $2,000 $167

Reserves & Replacements ($200/unit) $2,400 $200 $2,400 $200

TOTAL EXPENSES $92,241 $97,258

Expenses per SF $8.81 $9.29

Expenses per Unit $7,687 $8,105

% of EGI 39.9% 29.3%

NET OPERATING INCOME $139,021 $11,585 $234,342 $19,529

INCOME & EXPENSE

NOTES: Some Expenses Are Estimated

Total Number of Units: 12Total Rentable area: 10,466 SF

6125 Horner Street, Los Angeles, CA 90035*Property is subject of City of Los Angeles Soft Story Retrofit Ordinance.

Annualized Income & Expense

Current Pro Forma

INCOME

Scheduled Rent Income $237,384 $348,000

Other Income $1,000 $1,000

Scheduled Gross Income $238,384 $349,000

Less: Vacancy/Other Deductions 3.0% $7,122 5.0% $17,400

Effective Gross Income $231,262 $331,600

Less: Operating Expenses 39.9% $92,241 29.3% $97,258

Net Operating Income $139,021 $234,342

Debt Service ($115,428) ($115,428)

Pre-Tax Cash Flow 0.93% $23,593 4.68% $118,914

Principal Reduction ($32,964) ($32,964)

Total Return Before Taxes 2.23% $56,557 5.98% $151,878

CURRENT MARKET

Unit Mix # of Units Average RentMonthlyIncome

Average RentMonthlyIncome

1 Bed 1 Bath 4 $1,532 $6,129 $2,000 $8,000

1 Bed 1 Bath + Balcony 4 $1,675 $6,699 $2,050 $8,200

2 Bed 2 Bath + Balcony 2 $1,661 $3,321 $3,000 $6,000

3 Bed 2 Bath + Balcony 2 $1,817 $3,633 $3,400 $6,800

Current Occupancy: 100% Annual Current: $237,384 Annual Market: $348,000

Annualized Expenses

Operating Expenses Current Pro Forma

Taxes (1.25%) $56,188 $56,188

Insurance ($0.45/sq. ft. ) $4,710 $4,710

Utilities - LADWP & SoCalGas (2017) $5,761 $5,761

Repairs & Maintenance ($500/Unit) $6,000 $6,000

Management Fee (5% of EGI) $11,563 $16,580

Cleaning/Janitorial Services ($100/month) $1,200 $1,200

Trash ($260.02/month) $3,120 $3,120

Gardener ($100/month) $1,200 $1,200

Pest Control (Estimated) $500 $500

Miscelleanous (Intercom, License) $2,000 $2,000

Reserves & Replacements ($200/unit) $2,400 $2,400

Total Expenses: $92,241 $97,258

Total Expenses per Unit: $7,687 $8,105

Total Expenses per Sq. Ft.: $8.81 $9.29

Property Information

Address 6125 Horner Street


No. of Units 12

Year Built 1959

Lot Size (SF) 10,215

Lot Size (AC) 0.23

Net Rentable SF: 10,466

APN 5068-005-017

Financing

Loan Amount $1,955,325

Interest Rate 4.25%

Monthly Payment $9,619.02

Loan-to-Value 43.5%

Amortization (Years) 30

Debt Service Coverage Ratio 1.20

Term 30 Years

I/O Period (Years) 5 Years Fixed

Price $4,495,000Down 56.5% $2,539,675

Current Cap 3.09%

Pro Forma Cap 5.21%

Price/Unit $374,583

Price/SF $429.49

Current GRM 18.94

Pro Forma GRM 12.92

Ownership Fee Simple

FINANCIAL SUMMARY

6125 Horner Street, Los Angeles, CA 90035*Property is subject of City of Los Angeles Soft Story Retrofit Ordinance.

William JamesMulti-Family Investment Sales

DirectorOffice: (310) 593-9867Mobile: (310) 600-9858

Will iam.James@cbcadvisors .comLicense: CA # 01734419

Tom JonssonMulti-Family Investment Sales

Managing PrincipalOffice: (310) 593-9866Mobile: (310) 966-0122

Tom.Jonsson@cbcadvisors .comLicense: CA # 01755842

300 North Continental Boulevard, Suite 100El Segundo, CA 90245

horner street, -...

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