marcus & millichap - loopnet · 2018-10-09 · marcus & millichap has been selected to...

Marcus & Millichap

THE LIBEROW GROUP

1722GARFIELD PLACELOS ANGELES,CA 90028

NON-ENDORSEMENT AND DISCLAIMER NOTICEThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

SAM LIBEROWVice President InvestmentsDirector, Ntnl Multi Housing Group 16830 Ventura Blvd. Suite 100Encino, CA 91436(818) 212-2795 Direct (818) 698-6464 Fax [email protected] License: CA 01933858

EXCLUSIVELY LISTED BY:

MARC FARRISAssociate16830 Ventura Blvd. Suite 100Encino, CA 91436(818) 212-2683 Direct (818) 698-6464 Fax [email protected] License: CA 02063796

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TABLE OF CONTENTS

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2

3

Executive Summary

Investment Highlights

Property Overview

Financial Analysis

Comparables

Area Overview

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5

6

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Marcus & Millichap has been selected to exclusively market for sale 1722 Garfield Place, a 24-unit apartment building in a prime Hollywood location.

Situated in the heart of the Historic Hollywood Studio District, Garfield is located just one block away from Hollywood Blvd and within a three blocks from the LA Metro Station located on Hollywood and Western. This property represents a true value-add opportunity as approximately 50% of the units have been renovated for demand of higher rent.

The building offers an excellent unit mix of studios, one-bedroom and two-bedroom apartments. The units consist of seven (7) studios, twelve (12) one-bedroom, and five (5) two-bedroom units. Some of the selectedunits include a washer and dryer. The property has a secured entry, on-site laundry, and a backyard patio. Apartments comes with great featureslike a fully equipped kitchen, hardwood floors, and ceiling fans.

1722 Garfield Place is located in a booming neighborhood of Hollywood. Just three blocks away, hop on the Metro to go to DTLA or check out the new coffee spots like BOLT or you can go to Runyon Canyon to the hiking trails and views.

This property is easily accessible to other neighborhoods like Studio City,Los Feliz, Glendale, Koreatown, West Hollywood, and Silver Lake.

EXECUTIVE SUMMARY PROPERTY OVERVIEW

PROPERTY OVERVIEW

Property Address 1722 Garfield Place.

Building SF 14,312 SF

Lot Size 9,500 SF

Units 24

APN 5544-005-005

Year Built 1924

Zoning LAR3

FINANCIAL OVERVIEW

Sales Price $6,250,000

CAP Rate 4.18%

GRM 14.00

Price/Unit $260,417

Price/SF $436.70

ProForma CAP Rate 5.23%

ProForma GRM 12.15

Assumable Financing 3.26%

6 7

• Opportunity to acquire 24 units in a prime Hollywoodlocation

• Extremely attractive assumable financing at 3.26%

• 14 units have been renovated - 4 units by currentowner and 10 units by previous owner. Rents can beincreased on units that were renovated by previousowner with additional interior renovations.

• Unit mix of six (7) Studios, twelve (12) one-bedroom,and five (5) two-bedroom apartments

• Select units include washer and dryer in units

• Secured entry, on-site laundry, and backyard patio

• Close to Griffith Park, Silverlake and Downtown LosAngeles; Adjacent to Los Feliz

• One block away from the Metro Red Line located atthe Hollywood/Western station

INVESTMENT HIGHLIGHTS

GREAT WALKABILITY

WALK SCORE OF 90 - WALKING DISTANCE TO GROCERY STORES,

PHARMACIES, AND RECREATIONAL PARKS

DEMOGRAPHICS

$64,054 $79,449 1,041,3955-Mile RadiusAverage Household Income

1-Mile RadiusAverage Household Income

5-Mile RadiusPopulation

WALKSCORE90/100

Walkscore of 90 meaning daily errands are able to be

8 9

MAJOR EMPLOYERS

Employers Number of Employees

Sunset Studios 5,500

Kaiser Permanente 3,500

Netflix 5,400

CBS Television City 12,700

Paramount Pictures 4,100

THE OFFERING

Property 1722 Garfield Pl.Price $6,250,000Property Address 1722 Garfield Pl.Assesors Parcel Number 5544-005-005Zoning LAR3

SITE DESCRIPTION

Number of Units 24Number of Buildings 1Number of Stories 2Year Built/Renovated 1924Rentable Square Feet 14,312Lot Size 9,500Parking No

UTILITIES

Water Master MeteredElectric Master MeteredGas Master Metered

CONSTRUCTION

Foundation ConcreteFraming WoodframeExterior StuccoRoof Flat

BUILDING INFORMATION

PLAT MAP

1110

WHYBUY

PROXIMITY TO AMENITIES

Restaurants• The Magic Castle• TAO• Beachwood Cafe

Nightlife• Dream Hotel• Avalon Hollywood• Lure Nightclub• Sound Nightclub• The W Hotel

Groceries• Gelson’s• Ralph’s• Trader Joe’s• Von’s

RENT-CONTROLLED

Stabilized turn key asset

MAJOR EMPLOYERS IN THE IMMEDIATE AREA

• Sunset Studios• Netflix• CBS Television City• Sony Pictures• Paramount Pictures

WHY BUY 1722 GARFIELD PLACE?

PRIDE OF OWNERSHIPPROXIMITY TO HOLLYWOOD BLVDArclight HollywoodHollywood & HighlandHollywood PalladiumWalk of FameMadame Tussauds HollywoodHollywood BowlPantages TheatreRunyon CanyonGreek TheaterGriffith Observatory

VALUE-ADD OPPORTUNITY

Increase rental income with renovations (approx 50% of the units have been renovated)

DEMOGRAPHICS

Average HH income of $64,054 within a 1-mile radius

Significant upgrades made to the property over the life of current ownership

12 13

SU

NS

ET

BLV

D.

HOLLYW

OOD BLV

D.

SANTA MONICA BLVD.

DTLA

RUNYONCANYON

LOS FELIZ

LA BREA BLVD.

HIGHLAND AVE.

PLUMMERPARK

POINSETTIAPARK

FOUN

TAIN AVE.

WEST HOLLYWOOD

GLENDALE 1722 GARFIELD PL.

14 15

CURRENT INTERIOR PHOTOS

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UNIT NO UNIT TYPE CURRENT RENT UNIT SF MARKET RENT NOTES

1 2+1 $2,596 750 SF $2,600 Renovated- Prior Owner; Washer/Dryer

2 2+1 $2,150 750 SF $2,600 Renovated- Current Owner; Washer/Dryer

3 1+1 $1,095 500 SF $1,6504 Studio $912 500 SF $1,3505 1+1 $1,650 500 SF $1,650 Renovated - Prior Owner6 1+1 $1,650 500 SF $1,650 Renovated - Prior Owner7 Studio $966 500 SF $1,3508 Studio $885 500 SF $1,3509 Studio $808 500 SF $1,35010 1+1 JR $1,735 500 SF $1,735 Renovated- Current Owner

11 2+1 $2,150 750 SF $2,600 Renovated- Prior Owner; Washer/Dryer, Private Patio

12 1+1 $1,094 750 SF $1,65014 1+1 $1,027 750 SF $1,65015 2+1 $2,150 750 SF $2,150 Renovated - Prior Owner16 Studio $940 500 SF $1,35017 2+1 $2,150 750 SF $2,150 Renovated - Prior Owner18 1+1 $1,650 500 SF $1,650 Renovated - Prior Owner19 1+1 $1,650 500 SF $1,650 Renovated - Prior Owner

20 1+1 $1,675 500 SF $1,650 Renovated - Prior Owner/Partial Current Owner

21 Studio $940 500 SF $1,350

22 1+1 $1,600 500 SF $1,650 Renovated - Prior Owner/ Patial Current Owner

22 1+1 $1,650 500 SF $1,650 Renovated - Prior Owner24 1+1 $1,137 750 SF $1,65025 1+1 $1,819 750 SF $1,650 Renovated - Current Owner

Total 24 $36,078 $41,735

RENT ROLLFINANCIALS

* CURRENT RENTS HAVE BEEN ROUNDED TO THE NEAREST DOLLAR

* VERY ATTRACTIVE ASSUMABLE FINANCING

NO OF UNITS UNIT TYPE

6 Studio1 1+1 JR12 1+12 2+13 2+1 W/D Included24 Total Units

CURRENT RENTS MARKET RENTS

NO. OF UNITS BR/BA MO. RENT/UNIT MO. INCOME MO. RENT/UNIT MO. INCOME

6 Studio $808 - $966 $5,451 $1,350 $8,1001 1+1 JR $1,735 $1,735 $1,735 $1,73512 1+1 $1,027 - $1,850 $17,696 $1,650 $19,8002 2+1 $2,150 $4,300 $2,150 $4,3003 2+1 W/D $2150 - $2,597 $6,896 $2,600 $7,800Total Scheduled Rent: $36,078 $41,735Laundry: $143 $143Other Income: RUBS $973 $973Monthly Scheduled Gross Income: $37,194 $42,851Annual Scheduled Gross Income: $446,328 $514,212

SCHEDULED INCOME

UNIT MIX

FINANCIALS

18 19

Vacant

FINANCIALS

Notes: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. Reference to square footage or age are approximate. Buyer must verify information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.

PRICING

Sales Price $6,250,000

Price/Unit $260,417

Price/SF $436.70

CAP Rate 4.18%

ProForma CAP Rate 5.23%

GRM 14.00

ProForma GRM 12.15

Cash-on-Cash 3.01%

ASSUMABLE LOANLoan Amount $3,328,125Term Fixed until 3/2021Interest Rate 3.26%Annual Payment $183,017

FINANCIALS - ANNUALIZED OPERATING DATA

PRICINGINCOME AND EXPENSE % CURRENT RENTS % MARKET RENTS

Scheduled Gross Income: $446,328 $514,212Vacancy/ Bad Debt: 3% $13,390 3% $15,426Gross Operating Income: $432,938 $498,786Less Expenses: 38% $171,044 33% $171,044Net Operating Income: $261,894 $327,742Less Loan Payments: $174,030 $174,030Debt Coverage Ratio: 1.50 1.88 Pre-Tax Cash Flow: 3.01% $87,864 5.26% $153,712Plus Principal Reduction Yr 1: $66,521 $66,521Total Return Before Taxes: 5.28% $154,385 7.54% $220,233

EXPENSES % ANNUAL PER SF PER UNIT

On-Site Management - Payroll $6,960 $0.49 $290Off-Site Management - Payroll $13,390 $0.94 $558Total Management Fees $20,350 $1.43 $848Contract ServicesExtermination $755 $0.05 $31Exterior Landscaping $375 $0.02 $16Rubbish Removal $9,094 $0.64 $379Total Contact Services $10,224 $0.71 $426Combined Utilities $35,843 $2.50 $1,493Maintenance & Repairs $14,063 $0.98 $586Reserves $6,000 $0.42 $250Taxes 1.193% $74,564 $5.21 $3,107Property Liability Insurance $10,752 $0.75 $448Total Costs $141,222 $9.86 $5,884TOTAL ANNUAL EXPENSES: $171,796 $12.00 $7,158

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SALES COMPARABLES

SUBJECT PROPERTY

ADDRESS 1722 GARFIELD PL.

Close of EscrowSales Price $6,250,000Price/Unit $260,417Price/SF $436.70CAP Rate 4.18%GRM 14.00No. of Units 24Year Built 1924

ADDRESS 1317 N. BRONSON AVE.

Close of Escrow 12/01/2017Sales Price $3,450,000Price/Unit $215,625Price/SF $370.49CAP Rate 4.34%GRM 13.36No. of Units 16Year Built 1926

ADDRESS 5831 CARLTON WAY

Close of Escrow 10/02/2017Sales Price $3,901,000Price/Unit $390,100Price/SF $452.66CAP Rate 4.32GRM 15.81No. of Units 10Year Built 1962

SALES COMPARABLES

1 2

34

56

7

8

22 23

ADDRESS 1405 N. HUDSON AVE.

Close of Escrow 10/31/2017Sales Price 2,225,000Price/Unit $278,125Price/SF $381.97CAP Rate N/AGRM N/ANo. of Units 8Year Built 1909

ADDRESS 1527 N. MCCADDEN PL.

Close of Escrow 07/03/2018Sales Price 5,525,000Price/Unit $263,095Price/SF $573.85CAP Rate 4.25%GRM N/ANo. of Units 21Year Built 1924

ADDRESS 1310 N. LAS PALMAS AVE.

Close of Escrow 07/26/2018Sales Price 2,150,000Price/Unit $268,750Price/SF $380.67CAP Rate 4.02%GRM 15.42No. of Units 8Year Built 1952

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SALES COMPARABLES

ADDRESS 5645 FERNWOOD AVE.


ADDRESS 1847 N. CHEROKEE AVE.


76

SALES COMPARABLES

ADDRESS 5926 CARLTON WAY

Close of Escrow 08/17/2017Sales Price 2,525,000Price/Unit $252,500Price/SF $372.09CAP Rate 3.88GRM 16.42No. of Units 10Year Built 1953

8

24 25

CAP RATE

SALES COMPARABLES

6.0

5.4

4.8

4.2

3.6

3.0

2.4

1.8

1.2

0.6

0.0

AVG. 4.28%

1722 GARFIELDPLACE

GRM

SALES COMPARABLES

AVG. 15.25

1317 N. BRONSON AVE.

5831 CARLTONWAY

1405 HUDSONAVE.

1527 N. MCCADDEN

AVE.

1310 N. LAS PALMAS AVE.

5645 FERNWOOD

AVE.

1847 N. CHEROKEE AVE.

5926 CARLTON WAY

18.00

16.20

14.40

12.60

10.80

9.00

7.20

5.40

3.60

1.80

0.00

1722 GARFIELDPLACE


5831 CARLTONWAY

1405 HUDSONAVE.

1527 N. MCCADDEN

AVE.


5645 FERNWOOD

AVE.


5926 CARLTON WAY

26 27

PRICE/UNIT

SALES COMPARABLES

PRICE / SF

SALES COMPARABLES

AVG. $271,017

$400,000

$360,000

$320,000

$280,000

$240,000

$200,000

$160,000

$120,000

$80,000

$40,000

$0

1722 GARFIELDPLACE


5831 CARLTONWAY

1405 HUDSONAVE.

1527 N. MCCADDEN

AVE.


5645 FERNWOOD

AVE.


5926 CARLTON WAY

$600.00

$540.00

$480.00

$420.00

$360.00

$300.00

$240.00

$180.00

$120.00

$60.00

$0.00

1722 GARFIELDPLACE


5831 CARLTONWAY

1405 HUDSONAVE.

1527 N. MCCADDEN

AVE.


5645 FERNWOOD

AVE.


5926 CARLTON WAY

AVG. $409.69

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12

3

4

5

RENT COMPARABLES

UNIT TYPE UNITS RENT RENT/SF

Studio 6 $5,451 1+1 JR 1 $1,735 1+1 12 $17,696 2+1 2 $4,300 2+1 W/D 3 $6,896 Total 24 $36,078Year Built 1924


Studio 1 $1,345

Total 1 $1,345Year Built 1929


1+1 1 $1,645


1722 GARFIELD PL. 5600 FERNWOOD AVE. 6201 FOUNTAIN AVE.

1 2

30 31


1+1 1 $1,640



2+1 1 $2,195



2+1 1 $2,200


1411 N. MANSFIELD AVE.1745 N. ORANGE DR. 5555 HAROLD WAY.

43 5

RENT COMPARABLES

STUDIOS 1 BEDROOM

RENT COMPARABLES

2 BEDROOM

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AREA OVERVIEW

HOLLYWOOD BLVD

The city of Hollywood is among the most densely populated neighborhoods in all of Los Angeles, due to its numerous amenities and its close proximity to many employers. Because of its history and attractions like Walk of Fame and the Dolbe Theatre, Hollywood has always been the main attraction for tourists and now, home to many major entertainment companies like Netflix and CBS TV City. It is famous as the historical center of movie studios and move stars.

Hollywood Boulevard is a Los Angeles cultural icon, with museums, landmarks and other attractions that celebrate L.A.’s rich film and entertainment heritage. You can see handprints and footprints of the stars at the TCL Chinese Theatre, which is said to be one of the greatest theatres in the world, see the stars on the Hollywood Walk of Fame, or visit the famous celebrity Hollywood Wax Museum. You can definitely find a day’s work of activities that will give you the true experience of Hollywood and all it has to offer.

If you want great shopping, dining and entertainment, visit Hollywood & Highland, which is in the heart of all the attractions and home to Dolby Theatre. This complex has more than 70 retailers, more than 25 dining options, and a great nightlife, including a bowling alley called Lucky Strike and OHM nightclub. They also have a family friendly arcade center located within the structure called Dave and Busters. Hollywood & Highland also has Metro Rail Red Line station underneath it, as well as parking making it easy and affordable to visit from all places in Los Angeles.

POINTS OF INTEREST

MADAME TUSSAUDS HOLLYWOOD

WALK OF FAME

TCL CHINESE THEATER

$64,054 $79,4495-Mile RadiusAverage Household Income

1-Mile RadiusAverage Household Income

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AREA OVERVIEW

MAJOR AMENITIES

Walk of Fame 1.8 Miles

Magic Castle 2.5 Miles

Griffith Observatory 3 Miles

Runyon Canyon 3 Miles

Hollywood Palladium 1.1 Miles

Pantages Theatre 0.9 Miles

NEARBY HOSPITALS

Kaiser Permanente 1.2 Miles

Children’s Hospital 1.4 Miles

Presbyterian Medical 1.5 MilesSouthern CaliforniaHospital 1.3 Miles

NEARBY SCHOOLS

Immaculate Heart HighSchool & Middle School 0.2 Miles

Hollywood Senior HighSchool 1.7 Miles

Grant ElementarySchool 0.4 Miles

Emerson College 0.8 Miles

Musicians Institute 1.6 Miles

AREA OVERVIEW

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2017 Population 66,236 373,165 1,041,395

2017 Households 29,371 167,402 437,246

2017 Average Household Size 2.14 2.18 2.34

2017 Owner Occupied Housing Units 3,130 29,560 87,858

2017 Renter Occupied Housing Units 26,240 137,842 349,388

2017 Vacant 1,459 5,833 17,070

$0 - $14,999 22.91% 16.56% 16.51%

$15,000 - $24,999 15.69% 12.87% 13.08%

$25,000 - $34,999 10.57% 10.52% 10.47%

$35,000 - $49,999 12.58% 13.09% 12.66%

$50,000 - $74,999 15.46% 16.26% 15.78%

$75,000 - $99,999 7.80% 9.56% 9.75%

$100,000 - $149,000 7.86% 10.25% 10.57%

$150,000 - $199,999 2.56% 4.17% 4.48%

$200,000 or More 4.57% 6.70% 6.70%

2017 Average Household Income $64,054 $79,449 $80,014

2017 Median Household Income $35,867 $45,817 $46,263

2017 Per Capita Income $29,387 $35,998 $33,891

36 37

Marcus & Millichap

THE LIBEROW GROUP SAM LIBEROWVice President Investments

Director, Ntnl Multi Housing Group 16830 Ventura Blvd. Suite 100

Encino, CA 91436(818) 212-2795 Direct

(818) 212-2700 Fax [email protected]

License: CA 01933858

MARC FARRISAssociate

16830 Ventura Blvd. Suite 100Encino, CA 91436

(818) 212-2683 Direct (818) 698-6464 Fax

[email protected] License: CA 02063796

marcus & millichap - loopnet · 2018-10-09 · marcus & millichap has been selected to...

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