natick manor apartments - loopnet › d2 › 7zp9bi_uvxnd5... · sherman oaks, ca 91403 all...

Natick Manor Apartments4646 Natick Ave • Sherman Oaks, CA 91403

Cindy Hill, CCIMSenior Vice [email protected]

4061 Laurel Canyon Blvd.Studio City, CA 91604www.valleyapartmentsales.com

PROPERTY HIGHLIGHTS18 units + 2 non-conforming in Prime Sherman Oaks. Minutesaway from Ventura Blvd, restaurants, shopping and freeway

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Excellent unit mix of over 80% two-bedroom 2 bath units. Someunits feature dens which could be used as third bedrooms.

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Units average over 1,500 square feet●

Numerous amenities include indoor pool, balconies, central HVACunits, secured parking, and lush landscaping

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Below market assumable loan at 3.35% interest only forapproximately three more years

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Prepared By

INVESTMENT DETAILS

4646 Natick AveSherman Oaks, CA 91403

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.

ANALYSIS

Analysis Date May 2018

PROPERTY

Property Natick Manor Apartments

Property Address 4646 Natick AveSherman Oaks, CA 91403

Year Built 1968

FINANCIAL INFORMATION

Down Payment $4,400,000

PURCHASE INFORMATION

Property Type MultiFamily

Purchase Price $7,900,000

Units 20

Total Rentable Sq. Ft. 26,910

LOANS

Type Debt Term Amortization Rate Payment LO Costs

Interest Only $3,500,000 30 years 0 years 3.35% $9,771

INCOME & EXPENSES

Gross Operating Income $445,920

Monthly GOI $37,160

Total Annual Expenses ($163,830)

Monthly Expenses ($13,652)

p. 2

EXECUTIVE SUMMARY



Acquisition Costs

Purchase Price, Points and Closing Costs $7,900,000

Investment - Cash $4,400,000

First Loan $3,500,000

Investment Information

Purchase Price $7,900,000

Price per Unit $395,000

Price per Sq. Ft. $293.57

Income per Unit $22,980

Expenses per Unit ($8,191)

Income, Expenses & Cash Flow

Gross Scheduled Income $459,600

Total Vacancy and Credits ($13,680)

Operating Expenses ($163,830)

Net Operating Income $282,091

Debt Service ($117,250)

Cash Flow Before Taxes $164,841

Financial Indicators

Cash on Cash Return Before Taxes 3.75%

Debt Coverage Ratio 2.41

Capitalization Rate 3.57%

Gross Rent Multiplier 17.19

Gross Income / Square Feet $17.08

Gross Expenses / Square Feet ($6.09)

Operating Expense Ratio 36.74%

p. 3

PRO FORMA SUMMARY



INCOME

Description Actual Per Unit Market Per Unit

Gross Potential Rent $456,000 $22,800 $549,480 $27,474

Less: Vacancy ($13,680) ($684) ($16,484) ($824)

Misc. Income $3,600 $180 $3,600 $180

Effective Gross Income $445,920 $22,296 $536,596 $26,830

OPERATING EXPENSES

Description Actual Per Unit Market Per Unit

Property Management Fee $13,788 $689 $16,484 $824

Building Insurance $8,697 $435 $8,697 $435

City Fees $1,717 $86 $1,717 $86

Gardener $1,402 $70 $1,402 $70

Elevator $1,228 $61 $1,228 $61

Miscellaneous $1,500 $75 $1,500 $75

On-site Management Fees $5,400 $270 $5,400 $270

Pest Control $733 $37 $733 $37

Pool $1,350 $68 $1,350 $68

Repairs $7,500 $375 $7,500 $375

Telephone $1,091 $55 $1,091 $55

Taxes - Real Estate $94,249 $4,712 $94,249 $4,712

Trash Removal $3,964 $198 $3,964 $198

Utilities $21,211 $1,061 $21,211 $1,061

Total Expenses ($163,830) ($8,191) ($166,526) ($8,326)

NET OPERATING INCOME $282,091 $14,105 $370,070 $18,503

p. 4

PRO FORMA SUMMARY



UNIT MIX & MONTHLY SCHEDULED

Type Units Actual Total Market Total 1+1 4 $1,446 $5,782 $1,774 $7,0952+2 9 $1,876 $16,881 $2,400 $21,6002+2 + Den 6 $2,390 $14,337 $2,600 $15,600Single 1 $1,000 $1,000 $1,495 $1,495TOTALS 20 $38,000 $45,790

ANNUALIZED INCOME Description Actual Market

Gross Potential Rent $456,000 $549,480Less: Vacancy ($13,680) ($16,484)Misc. Income $3,600 $3,600Effective Gross Income $445,920 $536,596Less: Expenses ($163,830) ($166,526)Net Operating Income $282,091 $370,070Debt Service ($117,250) ($117,250)Net Cash Flow after Debt Service $164,841 $252,820Principal Reduction $0 $0Total Return $164,841 $252,820

ANNUALIZED EXPENSES Description Actual Market

Property Management Fee $13,788 $16,484Building Insurance $8,697 $8,697City Fees $1,717 $1,717Gardener $1,402 $1,402Elevator $1,228 $1,228Miscellaneous $1,500 $1,500On-site Management Fees $5,400 $5,400Pest Control $733 $733Pool $1,350 $1,350Repairs $7,500 $7,500Telephone $1,091 $1,091Taxes - Real Estate $94,249 $94,249Trash Removal $3,964 $3,964Utilities $21,211 $21,211Total Expenses $163,830 $166,526Expenses Per RSF $6.09 $6.19Expenses Per Unit $8,191 $8,326

INVESTMENT SUMMARY

Price: $7,900,000

Year Built: 1968

Units: 20

Price/Unit: $395,000

RSF: 26,910

Price/RSF: $293.57

Lot Size: 14,245 sf

Floors: 3

APN: 2265-002-179

Cap Rate: 3.57%

Market Cap Rate: 4.68%

GRM: 17.19

Market GRM: 14.28

FINANCING SUMMARY

Loan Amount: $3,500,000

Down Payment: $4,400,000

Loan Type: Interest Only

Interest Rate: 3.35%

Term: 30 years

Monthly Payment: $9,771

DCR: 2.41

p. 5

PROPERTY DESCRIPTION



18 Units in Prime Sherman Oaks | Excellent unit mix with upside KW Commercial is proud to represent this 18 unit plus two additional non-conforming units apartment building inSherman Oaks. The non conforming units are in the process of being legalized with the city.

The building was constructed in 1968. Its unit mix consists of (3) one-bedroom, one-bathroom units, (9) two-bedroom,two-bathroom units, and (6) two-bedroom, two-bathroom and a den units. With a lot size of 14,245 square feet, theproperty has a total of 26,910 rentable square feet. There are (2) non confirming units that bring in an additional $1000each per month.

There is an existing loan in the approximate amount of $3500,000 that was originated in 2015. The loan is at 3.35%interest that is fixed until October 16, 2020. If buyer does not assume the loan buyer is responsible for prepaymentpenalty of approximately 2% of the loan amount. The property is situated in a prime Sherman Oaks area, which has acomfortable blend of urban and suburban amenities. Along with sunny, clean sidewalks, the city offers many hip cafesand shops — especially on Ventura Boulevard, which features the Sherman Oaks Galleria and many upscalerestaurants. Residents also have easy access to the 405 and 101 freeways.

The building’s amenities include an indoor pool, balconies, central HVAC units, secured parking, and lush landscaping.It is separately metered for gas and electricity.

p. 6

UNIT RENT ROLL



Unit Description Current Rent Pro Forma Rent Comments

201 2+2 + Den $2,195 $2,600

202 2+2 $2,164 $2,400

203 2+2 $1,444 $2,400

204 2+2 $2,050 $2,400

205 2+2 + Den $2,490 $2,600

206 1+1 $1,586 $1,800

301 2+2 + Den $2,390 $2,600

302 2+2 $2,016 $2,400

303 2+2 $1,044 $2,400

304 2+2 $2,008 $2,400

305 2+2 + Den $2,462 $2,600

306 1+1 $1,590 $1,800

401 2+2 + Den $2,210 $2,600

402 2+2 $2,000 $2,400

403 2+2 $2,005 $2,400

404 2+2 $2,150 $2,400

405 2+2 + Den $2,590 $2,600

406 1+1 $1,606 $1,800

407 Single $1,000 $1,495 Currently non-conforming; permits applied for

408 1+1 $1,000 $1,695 Currently non-conforming; permits applied for

p. 7

UNIT MIX REPORT



Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly

4 1+1 0 $1,446 $5,782 $1,774 $7,0959 2+2 0 $1,876 $16,881 $2,400 $21,6006 2+2 + Den 0 $2,390 $14,337 $2,600 $15,6001 Single 0 $1,000 $1,000 $1,495 $1,49520 0 $38,000 $45,790

UNIT MIX UNIT MIX SQUARE FEET

● 1+1

● 2+2

● 2+2 + Den

● Single

● 1+1

● 2+2

● 2+2 + Den

● Single

UNIT MIX INCOME UNIT MIX MARKET INCOME

● 1+1

● 2+2

● 2+2 + Den

● Single

● 1+1

● 2+2

● 2+2 + Den

● Single

p. 8

PROPERTY PHOTOS



Pride of ownership apartment buildingTrophy property close to dining, shopping, and entertainment

Large balaconies Spacious living room

Living and dining area Separate dining area

Kitchen and breakfast area updated bathroom

p. 9

PROPERTY PHOTOS



Pride of ownership apartment buildingTrophy property close to dining, shopping, and entertainment

Indoor pool with exercise equipment Large bedroom

property courtyard / patio Close to shopping, dining and entertainment

Close aerial view Convenient to the 101 & 405 Freeways

MAPS AND AERIALS



18 Units in Prime Sherman OaksClose to 101 and 405 freeways

p. 11

City of Sherman Oaks

www.ValleyApartmentSales.com

Sherman Oaks has a comfortable blend of urban and suburban ameni es.

With sunny, clean sidewalks, the city offers many hip cafes and shops—

especially on Ventura Boulevard. Residents enjoy close proximity to the

Sherman Oaks Galleria, Sherman Oaks Fashion Square, and many upscale

restaurants. The Sherman Oaks community also enjoys the Sherman Oaks

War Memorial, which features jogging paths, tennis courts, and several

classes and ac vi es.

The city has easy access to the 405 and 101 freeways.

SALE COMPARABLES



Subjec 1 2 4 5 6 7 8 9 10

1%

2%

3%

4%

5%

6%

7%

8%

Avg.

3.367

Cap Rate

Subjec 1 2 4 5 6 7 8 9 10

3.0

6.0

9.0

12.0

15.0

18.0

21.0

24.0

Avg.

16.767

Gross Rent Multiplier

Subje 1 2 3 4 5 6 7 8 9 10

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Avg.

$294,132

Price per Unit

Subje 1 2 3 4 5 6 7 8 9 10

$45

$90

$135

$180

$225

$270

$315

$360

Avg.

$289.68

Price per Sq. Ft.

p. 13

SALE COMPARABLES



S Natick Manor Apartments4646 Natick AveSherman Oaks, CA 91403

Sale Price $7,900,000Units 20Price/Unit $395,000Price/SqFt $293.57Cap Rate 3.57%Year Built 1968GRM 17.19

# Units Unit Type4 1+1

9 2+2

6 2+2 + Den

1 Single

1 4540 Hazeltine Ave4540 Hazeltine AveSherman Oaks, CA 91423

Sale Price $7,750,000Units 23Price/Unit $336,957Price/SqFt $353.48Cap Rate 4.0%Year Built 1951Sale Date 12/11/2017GRM 15.6

# Units Unit Type6 One Bedroom One Bath

7 Two Bedroom Two Bath

10 Three Bedroom Two Bath

2 4535 Murietta Ave4535 Murietta AveSherman Oaks, CA 91423



4 Two Bedroom One Bath


p. 14

SALE COMPARABLES



3 Coldwater Court4526 Coldwater CanyonStudio City, CA 91604

Sale Price $5,350,000Units 15Price/Unit $356,667Price/SqFt $310.92Cap Rate N/AYear Built 1965Sale Date 4/14/2017GRM N/A




4 Villa Colfax4377 Colfax AveStudio City, CA 91604

Sale Price $10,200,000Units 34Price/Unit $300,000Price/SqFt $237.13Cap Rate 3.04%Year Built 1970In EscrowGRM 18.3



5 12100 Valley Spring Ln12100 Valley Spring LnStudio City, CA 91604



1 Two Bedroom One Bath



p. 15

SALE COMPARABLES



6 Toluca Plaza10311 Riverside DrToluca Lake, CA 91602




7 Chandler Court12245 Chandler BlvdValley Village, CA 91607




8 The Imperial11915 Kling StValley Village, CA 91607




p. 16

SALE COMPARABLES



9 11935 Kling St11935 Kling StValley Village, CA 91607





A 11930 Kling St11930 Kling StValley Village, CA 91607





NOTESLegal address is 11940 Kling St

p. 17

SALE COMPARABLES



S 4646 Natick AveSherman Oaks, CA, 91403$7,900,000

1 4540 Hazeltine AveSherman Oaks, CA, 91423$7,750,000

2 4535 Murietta AveSherman Oaks, CA, 91423$3,900,000

3 4526 Coldwater CanyonStudio City, CA, 91604$5,350,000

4 4377 Colfax AveStudio City, CA, 91604$10,200,000

5 12100 Valley Spring LnStudio City, CA, 91604$5,600,000

6 10311 Riverside DrToluca Lake, CA, 91602$11,900,000

7 12245 Chandler BlvdValley Village, CA, 91607$10,025,000

8 11915 Kling StValley Village, CA, 91607$6,800,000

9 11935 Kling StValley Village, CA, 91607$6,800,000

A 11930 Kling StValley Village, CA, 91607$6,850,000

p. 18

natick manor apartments - loopnet › d2 › 7zp9bi_uvxnd5... · sherman oaks, ca 91403 all...

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