iconic prime noho arts district - loopnet · 2018-12-10 · 18 estancia the noho arts district is...

I C O N I CEXCELLENCE IN REAL ESTATE PRIME NOHO ARTS DISTRICT

I C O N I CEXCELLENCE IN REAL ESTATE

TABLE OF CONTENTS


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11259 OTSEGO ST

Property Overview 7Investment Overview 6Property Photos 12-14Location Overview 15Financial Overview 20Rent Survey 24Sales Comparables 27

AGENT CONTACT

PETER STRAUSSPartnero: 747-444-3303m: [email protected] #01335696

16530 Ventura BlvdSuite 409Encino, CA 91436

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Estancia Apartments11259 Otsego Street is an 8 unit two-story apartment building located in prime NoHo Arts District. Six of the units have been tastefully restored with designer finishes. This near turn-key asset has a going-in CAP Rate of 4.21%.

INVESTMENT overview 11259 OTSEGO ST


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PROPERTY OVERVIEW

Estancia Apartments is an eight-unit property located in the heart of the NoHo Arts District. The Arts Districts is an area of the San Fernando Valley that is undergoing rapid growth and urbanization as dozens of developments are currently underway and in planning stages. This will increase density, bringing new retail and entertainment options, and transform this once sleepy bedroom community into a vibrant city-like community with walkable and bikeable streets, and improved services surrounding major transit hubs.

Located at 11259 Otsego Street, the eight-unit Estancia Apartments was built in 1950 and painstakingly restored in 2018, maintaining the architectural charm of the exterior while bringing unit interiors into the 21st century. The property features a unit mix of all one-bedroom and one-bathroom units that have an average living area of 665 square feet and include individual water heaters.

Six of the eight units at Estancia were comprehensively restored in 2018 with significant effort made to maintain the mid-century charm. Existing hardwood floors were renewed and restained throughout. Updated kitchens feature mosaic hexagon tile flooring, attractive dual-tone shaker-style cabinetry with durable quartz countertops, and modern stainless steel appliances. Bathrooms were updated with new cabinetry and hardware, and feature floating vanities. Expansive windows bring in natural light and create an extra sense of space.

• Renovated and Restored in 2018 - six of eight units updated• Charming and spacious one-bedroom units averaging 665

square feet• Renewed original hardwood flooring and designer tilework• Additional upside available through turnover and renovation of

remaining two units• Surrounded by numerous major mixed-use developments• New Whole Foods 365 Market opening less than 600 feet from

property

The NoHo Arts District is in the midst of an ongoing renaissance that started in the early 2000’s with the development of the North Hollywood Metro station. Once a gritty suburb, North Hollywood has transformed into the San Fernando Valley’s cultural hub with numerous dance studios, art galleries and acting workshops side by side with various strip malls and mixed-use entertainment complexes. The neighborhood has transformed into one of the most densely populated in the San Fernando Valley, and is home to a major transportation hub, serving as the nexus point between the Orange Line busway and the Red Line subway.


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6Units have been rehabbed

and are turn-key

METROMetro 1/2 mile to

Chandler/Lankershim Metro

EAT/DRINK/PLAYNorth Hollywood

Studio City

Hollywood


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PARCEL MAPINVESTMENT OVERVIEW

Address 11259 Otsego StNorth Hollywood, CA 91601

Submarket NoHo Arts District

Assessor Parcel Number 2353-003-018

IMPROVEMENTS 8 Apartment Units

Year BUILT 1950

parking 5 Spaces

GROSS SQUARE FOOTAGE 6,894 (Square Feet)

Estimated Land Area 5,863 (Square Feet)

UTILITIES Individually MeteredIndividual Water Heaters

Zoning LAR4

Estancia Apartments11259 Otsego St

NoHo Arts District


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MAP OF THE AREA

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Location overview 11259 OTSEGO ST


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NoHo Arts District

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Along Otsego Street there are three developments currently underway, including a 42-unit project directly next door, and a 70-unit project across

the street. Less than five hundred feet from the property is the new Lankershim + Otsego project from Camden Securities Company, which is expected to be completed in late-2019. This development consists of a seven-story building

containing 297 apartments atop a 365 by Whole Foods Market. In addition, the NoHo West property, located less than one mile north of Estancia, is currently underway,

and will bring 642 apartments, up to 60 dining and shopping options, a grocery store, gym, and movie theater to the old 25-acre Macys site at Laurel Plaza. Plans are also underway for a Greenland and Trammell Crow joint venture that will transform the

existing park-and-ride lot of the North Hollywood Station of the Metro Red Line to a mixed-use village with plans to include 1,500 units of housing, 150,000 square feet

of retail, and 450,000 square feet of offices (and 5,400 parking spaces).

It is no exaggeration to say that there are currently thousands of new units of housing being developed currently, as well as public

developments that will create open space, bring in new retailers, and build new offices, creating mini villages within the

densely packed neighborhoods.

NOHO DEVELOPMENT PROJECTS

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The NoHo Arts District is in the midst of an ongoing renaissance that started in the early 2000’s with the development of the North Hollywood Metro station. Once a gritty suburb, North Hollywood has transformed into the San Fernando Valley’s cultural hub. Home to contemporary theaters, art galleries, cafes, and shops, the NoHo Arts District features more than 20 professional theaters, a diverse range of art galleries and public art spaces, and numerous professional dance studios. The district is also home to the largest concentration of music recording venues west of the Mississippi. The Arts District is also home to a large concentration of popular local bars and restaurants ranging from Tonga Hut, LA’s oldest operating tiki bar, to upscale Federal Bar gastropub which is housed in a two-story 1920’s bank building. Restaurants in the district reflect the variety of cultures that call North Hollywood home, and include Greek favorite Rodini, Spumate, an elegant white tablecloth Italian establishment, and Hayat’s Kitchen and Skaf’s Grill which serve up Middle Eastern and Mediterranean cuisine.

NEIGHBORHOOD SPOTS

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The NoHo Arts District is a hotbed of new development activity and neighborhood gentrification, and there is no better evidence of the demographic shifts that are occurring in the community than the influx of new retail options. Less than 600 feet from Estancia Apartments, a new 365 Whole Foods grocery-anchored mixed-use development is underway and scheduled for late-2019 completion. The community is currently dotted with national and regional retailers, including Target, Starbucks, The Coffee Bean and Tea Leaf, Petco, and 24-Hour Fitness.

Hundreds of new retail and entertainment options are expected to enter this thriving district as major projects are completed in the next 24-months. NoHo West, the 25-acre former Laurel Plaza site, is expected to add up to 60 new retail and dining options, and the transformation of the North Hollywood Metro Station park-and-ride lot, located less than one-half mile from Estancia, includes 150,000 square feet of new retail and 450,000 square feet of office development.

URBAN LIVING

FINANCIAL overview 11259 OTSEGO ST


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INVESTMENT OVERVIEWAsset Estancia

Location 11259 Otsego St.North Hollywood, CA 91601

Opportunity 8 Apartment Units

RENOVATED UNITS 6 Units Rehabbed

YEAR BUILT 1950

PARKING 5 Spaces

GROSS SQUARE FOOTAGE 5,327 (Square Feet)

PURCHASE PRICE $2,400,000

PRICE PER UNIT $300,000

CURRENT CAP RATE 4.21%

CURRENT GRM 14.99


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RENT ROLL

UNIT MIX SUMMARYUNIT TYPE # OF UNITS

AVG SQUARE

FEET

AVERAGE CURRENT

RENTS

RENT $/SF

CURRENT MONTHLY INCOME

AS-IS MARKET RENTS

AS-IS MARKET

$/SF

AS-IS MARKET

MONTHLY INCOME

RENOVATED MARKET RENTS

RENOVATED MARKET

$/SF

RENOVATED MARKET

MONTHLY INCOME

1 Bedroom + 1 Bath 8 665 $1,667.72 $2.51 $13,341.74 $1,890.63 $2.84 $15,125 $2,100 $3.16 $16,800

Totals/Averages 8 665 $1,667.72 $2.51 $13,341.74 $1,891 $2.84 $15,125 $2,100 $3.16 $16,800

CURRENT RENOVATED

Unit # Unit Type Unit Sq. Ft Current Rent Per Sq. Ft As-Is Market Rent Per Sq. Ft Renovated

Market Rent Per Sq. Ft

11259-1 1 Bedroom + 1 Bath 665 $2,000.00 $3.01 $2,000.00 $3.01 $2,100.00 $3.16

11259-2 1 Bedroom + 1 Bath 665 $677.74 $1.02 $1,650.00 $2.48 $2,100.00 $3.16

11259-3 1 Bedroom + 1 Bath 665 $2,075.00 $3.12 $2,075.00 $3.12 $2,100.00 $3.16

11259-4 1 Bedroom + 1 Bath 665 $1,975.00 $2.97 $1,975.00 $2.97 $2,100.00 $3.16

11259-5 1 Bedroom +1 Bath 665 $789.00 $1.19 $1,600.00 $2.41 $2,100.00 $3.16

11259-6 1 Bedroom + 1 Bath 665 $1,975.00 $2.97 $1,975.00 $2.97 $2,100.00 $3.16

11259-7 1 Bedroom + 1 Bath 665 $1,975.00 $2.97 $1,975.00 $2.97 $2,100.00 $3.16

11259-8 1 Bedroom + 1 Bath 665 $1,875.00 $2.82 $1,875.00 $2.82 $2,100.00 $3.16

TOTAL 8 Units $13,341.74 $2.51 $15,125.00 $2.84 $16,800.00 $3.16

METRICSPROPERTY OVERVIEW

Property Address 11259 Otsego St

North Hollywood, CA 91601

Assessor Parcel Number 2353-003-018

Market North Hollywood

Sub-Market Noho Arts District

Zoning LAR4

Number of Units 8

Year Built 1950

Gross Building Sq. Ft. 5,327

Lot Size 6,894

INVESTMENT OVERVIEW

Purchase Price $2,400,000

Price Per Unit $300,000

Price Per Square Foot $450.54

FINANCING OVERVIEW

OPERATIONS OVERVIEWINCOME CURRENT AS-IS MARKET RENOVATED MARKET

Scheduled Market Rent $160,101 $181,500 $201,600

Less: Vacancy 3.00% ($4,803) ($5,445) ($6,048)

Subtotal: Effective Rental Income $155,298 $176,055 $195,552

Other Income

Plus: Laundry Income $1,200 $1,200 $1,200

Plus: Miscellaneous Fees $300 $300 $300

Plus: LAHD Registration/SCEP Reimbursement $444 $444 $444

Subtotal: Total Other Income $1,944 $1,944 $1,944

EFFECTIVE GROSS INCOME $157,242 $177,999 $197,496

EXPENSESFixed Expenses

Off-Site Management 4.00% $6,212 $7,042 $7,822

Property Tax 1.19% $28,608 $28,608 $28,608

Property & Liability Insurance $2,953 $2,953 $2,953

Subtotal: Fixed Expenses $38,811 $39,641 $40,421

Controllable Expenses

LAHD Fees & Administrative Costs $1,142 $1,142 $1,142

Repairs & Maintenance $500 $4,000 $4,000 $4,000

Utilities $6,200 $6,200 $6,200

Landscaping $1,200 $1,200 $1,200

Pest Control $840 $840 $840

Subtotal : Controllable Expenses $17,498 $17,498 $17,498

TOTAL EXPENSES ($56,309) ($57,139) ($57,919)

NET OPERATING INCOME $100,933 $120,860 $139,577

Capital Reserves $200 ($1,600) ($1,600) ($1,600)

Debt Service ($87,124) ($87,124) ($87,124)

NET CASH FLOW $12,209 $32,136 $50,853

1.18% 3.11% 4.93%

Principal Reduction $20,550 $20,550 $20,550

TOTAL RETURN $32,759 $52,685 $71,402

3.17% 5.11% 6.92%

Down Payment $1,032,000

Loan Amount $1,368,000

Loan to Value % 57.00%

Debt Coverage Ratio 1.16

Loan Type Fully Amortizing

Loan Rate 4.90%

Loan Term 5 Years

INVESTMENT RETURNS

GRM - Current 14.99

CAP Rate - Current 4.21%

GRM - Market 13.22

CAP Rate - Market 5.04%

GRM - Renovated 11.90

CAP Rate - Renovated 5.82%


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RENT SURVEY 11259 OTSEGO ST


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PROPERTY Units Year Built Parking Renovated Individually Metered Type Rent SF Rent/SF

11259 Otsego StNorth Hollywood, CA 91601 8 1950 Yes Yes Yes 1 Bedroom/1 Bath $2,100 665 $3.16

11005 Morrison StNorth Hollywood, CA 91601 24 1989 Yes Yes Yes 1 Bedroom/1 Bath $1,895 750 $2.53

11120 Huston StNorth Hollywood, CA 91601 34 2015 Yes Yes Yes 1 Bedroom/1 Bath $1,990 770 $2.58

11201 Otsego StNorth Hollywood, CA 91601 100 2005 Yes Yes Yes 1 Bedroom/1 Bath $2275 647-715 $3.30

11265 Morrison StNorth Hollywood, CA 91601 43 1986 Yes Yes Yes 1 Bedroom/1 Bath $2,300 645 $3.57

5077 Lankershim BlvdNorth Hollywood, CA 91601 156 2015 Yes Yes Yes 1 Bedroom/1 Bath $2,155 647 $3.33

11262 Otsego StNorth Hollywood, CA 91601 49 2018 Yes Yes Yes 1 Bedroom/1 Bath $2,175 660 $3.30

10741 Camarillo StNorth Hollywood, CA 91602 48 1987 Yes Yes Yes 1 Bedroom/1 Bath $1,995 700 $2.85

11325 Morrison StNorth Hollywood, CA 91601 21 1986 Yes Partially Yes 1 Bedroom/1 Bath $1,750 650 $2.69

11054 Otsego StNorth Hollywood, CA 91601 8 1953 Yes No Yes 1 Bedroom/1 Bath $1,650 560 $2.95

11124 Camarillo StNorth Hollywood, CA 91602 16 1953 Yes Partially Yes 1 Bedroom/1 Bath $1,695 700 $2.42

RENT SURVEY

ESTANCIA11259 Otego St.

11201 Otsego St

11124 Camarillo St

11120 Huston St

11265 Morrison St

11262 Otsego St

11325 Morrison St

10741 Camarillo St

11054 Otsego St

11005 Morrison St

5077 Lankershim Blvd


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RENT SURVEY

SALES COMPARABLES 11259 OTSEGO ST


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1 Bedroom/1 Bath

Made with

1 Bedroom/1 Bath 2 Bedroom/ 2 Bath

Made with


3 Bedroom/1 Bath

Made with


Made with


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SALES COMPARABLES

PROPERTY 11259 Otsego St 4400 Farmdale Ave 11544 Moorpark St 10640 Whipple St

LOCATION NoHo Arts District North Hollywood Studio City North Hollywood

NUMBER OF UNITS 8 6 8 5

YEAR BUILT 1950 1957 1956 1954

DATE SOLD Subject May-18 Jun-18 Jan-18

SALE PRICE $2,400,000 $2,125,000 $2,825,000 $1,850,000

PRICE/UNIT $300,000 $354,167 $353,125 $370,000

CAP RATE 4.21% 4.15% 3.90% 3.21%

GRM 14.99 17.00 16.20 19.81

PRICE/SF $450 $391 $371 $450

UNIT MIX

8 - 1 Bedroom/1 Bath 3 - 1 Bedroom/1 Bath2 - 2 Bedroom/1 Bath1 - 3 Bedroom/2 Bath

6 - 1 Bedroom/ 1 Bath2 - 2 Bedroom/ 2 Bath

3 - 1 Bedroom/ 1 Bath2 - 2 Bedroom/ 1 Bath

1 Bedroom/1 Bath

Made with


Made with


Made with


Made with


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SALES COMPARABLES

PROPERTY 11259 Otsego St 5029 Cartwright Ave 10924 Camarillo St 11840 Riverside Dr

LOCATION NoHo Arts District North Hollywood North Hollywood Valley Village

NUMBER OF UNITS 8 6 8 30

YEAR BUILT 1950 1952 1953 1956

DATE SOLD Subject Mar-18 Jun-18 Sep-18

SALE PRICE $2,400,000 $1,611,000 $2,000,000 $7,525,000

PRICE/UNIT $300,000 $268,500 $250,000 $250,833

CAP RATE 4.21% 3.80% N/A 3.52%

GRM 14.99 17.71 N/A 15.86

PRICE/SF $450 $376 $408 $383

UNIT MIX

8 - 1 Bedroom/1 Bath 4 - 1 Bedroom/ 1 Bath2 - 2 Bedroom/ 1 Bath

7 - 1 Bedroom/ 1 Bath1 - 2 Bedroom/1 Bath

19 - 1 Bedroom/1 Bath11 - 2 Bedroom/1 Bath

ESTANCIA11259 Otsego St

11544 Moorpark St

10640 Whipple St

4400 Farmdale Ave

10924 Camarillo St11840 Riverside Dr

5029 Cartwright Ave


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SALES COMPARABLES MAP

AGENT CONTACTPETER STRAUSSPartnero: 747-444-3303m: [email protected] #01335696

16530 Ventura BlvdSuite 409Encino, CA 91436


iconic prime noho arts district - loopnet · 2018-12-10 · 18 estancia the noho arts district is...

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