nico rosmarin molly first - loopnet
TRANSCRIPT
NICO ROSMARIN
MOLLY FIRST
TABLE OF CONTENTS
INVESTMENT OVERVIEW1
2
3
4
5
6
FINANCIAL ANALYSIS TEAM SNAPSHOT
DISCLAIMERSALES COMPARABLES
LOCATION OVERVIEW
INVESTMENTOVERVIEW
PROPERTY DETAILSINVESTMENT OVERVIEW
ADDRESS 1134 Marco Place
Venice, CA 90291
Units 4
Building Sqft. 1,870
Lot Size 4,364
Year Built 1947
Zoning LARD2
APN 4242-005-015
INVESTMENT DESCRIPTION
INVESTMENT HIGHLIGHTS
Nico Rosmarin and Molly First of Lyon Stahl Investment Real
Estate are pleased to present 1134 Marco Place, a value-add 4-
unit investment opportunity in Venice. Situated on a large 4,364
SF corner lot in one of the most highly desirable submarkets Los
Angeles’s Westside, 1134 Marco Place is a rare opportunity to
own property in a market with limited inventory and high
demand. The 1,870 SF building is comprised of four (4) one-
bedroom / one-bathroom units, two of which have their own
private patios/backyards. Originally constructed in 1949, the
property has since undergone various cosmetic and internal
updates, and one unit has just been fully remodeled and
delivered vacant!
Just one block up from Lincoln Blvd, 1134 Marco Place’s location
is more than ideal, in close proximity to popular restaurants,
bars, coffee shops, and markets including Whole Foods,
Starbucks, Superba Food + Bread, Deus Ex Machina, The Lincoln,
Whole Foods, Erewhon Market, Costco, and many more. It is also
less than a mile from the famous Abbot Kinney Blvd, dubbed by
GQ as “the coolest block in America,” a mile-long strip of the
latest fashion, art and food just minutes from Venice Beach. Just
5 minutes in the opposite direction is the Santa Monica Airport,
slated for redeveloped into retail/park space in the next 8 years
offering excellent long-term appreciation.
This highly coveted location is more than ideal for an owner-user
looking to immerse themselves in the plush culture Venice has
to offer as well as for an investor searching for a property that
holds strong rent appeal that will produce steady returns. You
don’t want to miss out on this incredible opportunity.
▪ One unit fully remodeled and delivered vacant
▪ All Tenants have expressed interest in Buyouts (Buyer
expected to pay)
▪ 2 units feature private yard/patio
▪ 2 single-car garages & 4 uncovered parking spaces
▪ Perfect Owner/User opportunity
▪ Prime Venice location- in close proximity to many popular
restaurants, retail, and attractions
▪ Value-add opportunity
▪ Financials are based on Pro Forma Numbers
PROPERTY PHOTOSINVESTMENT OVERVIEW
PROPERTY PHOTOSINVESTMENT OVERVIEW
PROPERTY PHOTOSINVESTMENT OVERVIEW
PROPERTY PHOTOSINVESTMENT OVERVIEW
PROPERTY PHOTOSINVESTMENT OVERVIEW
PROPERTY PHOTOSINVESTMENT OVERVIEW
FINANCIALANALYSIS
FINANCIAL SUMMARYFINANCIAL OVERVIEW
PROPERTY DETAILS
Address
Price $1,749,000
Units 4
Building Sqft 1,870
Lot Sqft 4,364
Year Built 1949
Price/Unit $437,250
Price/Sqft $935.29
INCOME DATA CURRENT PRO FORMA
NOI $40,921 $94,198
Cap Rate 2.34% 5.39%
GRM 25.47 14.15
Down Payment 30% $524,700
Loan Amount 70% $1,224,300
Interest Rate 4.00%
Amortization 30
Monthly Payment $5,845
1134 Marco Place .
Venice, CA 90291 .
PROPOSED FINANCING
FINANCIAL ANALYSISFINANCIAL OVERVIEW
# UNIT TYPE AVG CURRENT RENT TOTAL RENT AVG MARKET RENT TOTAL RENT
2 1 Bed 1 Bath $995 $1,989 $2,650 $5,300
2 1 Bed 1 Bath $1,867 $3,734 $2,500 $5,000
TOTAL $5,723 $10,300
EXPENSES CURRENT PRO FORMA
Real Estate Taxes $19,676 $19,676
Insurance $1,097 $1,097
Utilities $2,721 $2,721
Repairs & Maint $1,000 $1,000
Landscaping $1,200 $1,200
TOTAL $25,694 $25,694
Per Unit $13.74 $13.74
Per Sqft $6,424 $6,424
OPERATING DATA CURRENT PRO FORMA
Gross Market Rent $123,600 $123,600
Less: Loss to Lease ($54,924)
Other Income
Gross Potential Income $68,676 $123,600
Less: Vacancy Reserve ($2,060) 3% ($3,708) 3%
Gross Operating Income $66,616 $119,892
Less: Expenses ($25,694) 37.4% ($25,694) 20.8%
Net Operating Income $40,921 $94,198
Less: Loan Payments ($70,140) ($70,140)
Pre-Tax Cash Flow ($29,218) -5.6% $24,058 4.6%
Principal Reduction $21,560 $21,560
Total Return Before Taxes ($7,658) -1.5% $45,618 8.7%
RENT ROLLFINANCIAL OVERVIEW
UNIT UNIT TYPE CURRENT RENT MARKET RENT Notes
1 1 Bed 1 Bath $800 $2,650 Private Yard
2 1 Bed 1 Bath $2,500 $2,500 Vacant - Remodeled
3 1 Bed 1 Bath $1,234 $2,500
4 1 Bed 1 Bath $1,189 $2,650 Private Yard
$5,723 $10,300
$68,676 $123,600
MONTHLY SCHEDULED RENTAL INCOME
ANNUAL SCHEDULED RENTAL INCOME
SALESCOMPARABLES
SALES COMPARABLES MAPSALES COMPARABLES
1 1302 Pacific Ave
2 565 Westminster Ave
3 1025 Pleasant View Ave
4 905 Palms Blvd
5 728 Vernon Ave
6 1307 Innes Place
1134 Marco Place
7 705 6th Ave
8 617 6th Ave
9 728 Vernon Ave
617 6th Ave10
COMPARABLE ANALYSISSALES COMPARABLES
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
1 2 3 4 5 6 7 8 9 10
PRICE PER UNIT
$437,250
$0.00
$200.00
$400.00
$600.00
$800.00
$1,000.00
$1,200.00
1 2 3 4 5 6 7 8 9 10
PRICE PER SQFT
$935.29
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
1 2 3 4 5 6 7 8 9 10
CAP RATE
2.34%
0.00
5.00
10.00
15.00
20.00
25.00
30.00
1 2 3 4 5 6 7 8 9 10
GRM
25.47
COMP DETAILSSALES COMPARABLES
Sale Date 5/15/20
Price $1,775,000
Units 4
Price/Unit $443,750
Price/Sqft $866.70
Cap Rate 3.46%
GRM 18.77
Year Built 1921
Sale Date 2/15/20
Price $3,100,000
Units 4
Price/Unit $775,000
Price/Sqft $772.30
Cap Rate 4.00%
GRM 16.24
Year Built 1962
Sale Date 12/24/19
Price $1,405,000
Units 3
Price/Unit $468,333
Price/Sqft $501.61
Cap Rate 3.55%
GRM 18.33
Year Built 1977
1 2 3
1302 Pacific Ave, Venice 565 Westminster Ave, Venice 1025 Pleasant View Ave, Venice
CLOSED COMPARABLES
COMP DETAILSSALES COMPARABLES
Sale Date 9/30/19
Price $2,190,000
Units 3
Price/Unit $730,000
Price/Sqft $750.00
Cap Rate 4.63%
GRM 14.04
Year Built 1952
Sale Date 8/15/19
Price $2,350,000
Units 4
Price/Unit $587,500
Price/Sqft $849.60
Cap Rate -
GRM -
Year Built 1952
Sale Date 7/31/19
Price $1,900,000
Units 4
Price/Unit $600,000
Price/Sqft $657.17
Cap Rate 4.02%
GRM 16.17
Year Built 1952
905 Palms Blvd, Venice 728 Vernon Ave, Venice 1307 Innes Place, Venice
4 5 6
CLOSED COMPARABLES
COMP DETAILSSALES COMPARABLES
Sale Date 7/2/19
Price $2,674,500
Units 3
Price/Unit $891,500
Price/Sqft $921.29
Cap Rate 5.10%
GRM 12.74
Year Built 1952
Sale Date 4/4/19
Price $2,400,000
Units 3
Price/Unit $580,000
Price/Sqft $991.45
Cap Rate 3.07%
GRM 21.17
Year Built 1952
705 6th Ave, Venice 24 20th Ave, Venice
7 8
Sale Date 2/25/19
Price $1,500,000
Units 4
Price/Unit $375,000
Price/Sqft $542.30
Cap Rate 2.79%
GRM 23.29
Year Built 1952
728 Vernon Ave, Venice
99
CLOSED COMPARABLES
COMP DETAILSSALES COMPARABLES
Sale Date 2/7/19
Price $2,400,000
Units 4
Price/Unit $600,000
Price/Sqft $657.17
Cap Rate 3.63%
GRM 17.89
Year Built 1952
617 6th Ave, Venice
10
CLOSED COMPARABLES
LOCATIONOVERVIEW
REGIONAL MAPLOCATION OVERVIEW
AERIAL VIEWLOCATION OVERVIEW
LOCAL POINTS OF INTERESTLOCATION OVERVIEW
1134
Marco Pl
Venice Canals
1808 Lincoln
Mixed-Use Development Thatcher Yard Development X67 Development
CITY OVERVIEWLOCATION OVERVIEW
Venice is a major city in the “Silicon Beach” movement, and has seen aninflux of innovative tech companies open up shop. From E-commerce toVirtual Reality, startups are littered throughout this trendy beach town;including Nok, StackCommerce, Snap Inc., System1, Wevr, Gem, Within,Signal Sciences, Markett, Cargomatic, Creators Media Inc., Seriously,Enervee, Pledgeling, Sensay, Pinwheel, The Bouqs Company, and Zefr.
Venice residents are served by the Los Angeles Unified School District. Thecity’s main high school is Venice Senior High, which has been featured inGrease, A Nightmare on Elm Street, and Glee. Other schools include AnimoVenice Charter High School, Westside Leadership Magnet School, and threeelementary schools.
Hundreds of movies, television shows, and video games have usedlocations in Venice including Speed, The Big Lebowski, White Men Can’tJump, Lords of Dogtown, Californication, and Grand Theft Auto.
Venice is a residential, commercial, and beachfront neighborhood on theWestside of Los Angeles bordered by Santa Monica, Mar Vista, Marina delRey and the Pacific Ocean with a population of 40,885. Known for its man-made canals, flat beach, and two-and-a-half-mile pedestrian-only boardwalklined with artists, performers, shops and restaurants, Venice attractsthousands of visitors a day.
Abbot Kinney Boulevard, named after the city’s founder, features foodie hotspots, stylish boutiques and coffee bars. “Venice has evolved a lot as aneighborhood since Abbot Kinney built the canals in the early 20th century.Beginning as a resort town, but eventually falling on tougher times, Venicebecame a popular and eccentric beach destination. The boardwalk town isno stranger to pivoting, just like the startups and tech companies that havemoved into the area.” (builtinla.com)
VENICE
COUNTY OVERVIEWLOCATION OVERVIEW
Los Angeles County is the most heavily populated county with approximately9.9 million people, including about 1 million that live in unincorporated areasof the county. The metropolis –formed by the six neighboring counties ofLos Angeles, Ventura, Kern, San Bernardino, Riverside, and Orange – ishome to approximately 19 million residents. Los Angeles County is home toone of the most educated labor pools in the country and offers a labor forceof more than 4.7 million, of which more than 1.5 million are collegegraduates. Los Angeles County has the largest population of any county inthe nation, exceeded only by eight states According to the United StatesConference of Mayors, Los Angeles County boasts a GDP among the twentylargest in the world. Los Angeles County’s continued economic growth, incontrast to other areas of the state and nation, is due to its diversifiedeconomy and abundant, well-trained workforce.
Los Angeles County is well located on the Southern Coast of California, andcovers 4,061 square miles, including the San Clemente and Santa Catalinaislands. The county is comprised of approximately 88 vibrant and diversecities hosting more than 244,000 business establishments – the greatestconcentration in the state. Los Angeles County has a Gross DomesticProduct (GDP) of approximately $446 billion – placing it among the top 20economies in the world. The combined GDP of Los Angeles and its fivesurrounding neighboring counties places it in the top 10. California isgenerally considered to be in the top five.
If Los Angeles County were its own nation, its economy would be the 18thlargest in the world. It is home to more than 244,000 businesses, with moreminority and women owned businesses than any other state in the nationand is the nation’s top international trade center and manufacturing center.Los Angeles is recognized worldwide as a leader in entertainment, healthsciences, business services, aerospace and international trade. Because theLos Angeles area is so large and diverse, it has something to offer everyone.
LOS ANGELES COUNTY
While Hollywood and the Los Angeles beach culture are part of ourcollective image of Los Angeles, the city also has more museums than anyother city and some of the best hotels in the world.
Over the years, Los Angeles County has developed a diverse economic base,supported by a number of Fortune 500 companies with headquarters in thearea, including Hilton Hotels, Walt Disney, Occidental Petroleum, DirecTVGroup, Northrop Grumman, Computer Sciences, KB Home, Health Net,Mattel, and Avery Dennison. Key factors positively impacting the region’seconomic position include increased local media production by theentertainment industry and a continuing expansion of import flows.Moreover, growth in aerospace, homeland security and in the privatebusiness sector have contributed positively to the County's economy. LosAngeles' well educated labor pool, many universities, wonderful climate, andworld class infrastructure will enable Greater Los Angeles to continue to bea world leader in economic and cultural significance.
TEAMSNAPSHOT
ROSMARIN GROUPTEAM SNAPSHOT
NICO ROSMARINVice President | Team Founder
424.226.9449
303.819.5225
DRE 02023847
COREY RASMUSSENAssociate | Team Partner
310.990.0309
310.948.8284
DRE 02042837
CHARLIE RASMUSSENTeam Director of Operations
562.241.0898
310.404.9072
DRE 02039995
ROSMARIN GROUPTEAM SNAPSHOT
MOLLY FIRSTJunior Associate
424.210.9129
310.913.2488
DRE 02065583
SARAH BLACKFORDJunior Associate
323.634.9098
310.489.9961
DRE 02070596
BRANDON VEISEHJunior Associate
323.272.2117
310.909.3527
CHRISTIAN WEIRJunior Associate
323.272.2117
408.892.9810
CONFIDENTIALITY & DISCLAIMERThe information contained in this Offering Memorandum (“Memorandum”) is proprietary and strictly confidential; it is intended to be reviewed only by theparty receiving it from Broker and should not be made available to anyone else without the written consent of Broker. By retention or use of thisMemorandum, you agree that its contents are confidential, that you will hold it in the strictest confidence, and that you will not disclose any of its contentscontrary to these terms.
This Memorandum has been prepared to provide summary, unverified information to establish a preliminary level of interest in the subject property(“Property”). The information in this Memorandum has been obtained from sources Broker believes to be reliable; however, Broker has not conductedsufficient investigation to make any warranty or representation whatsoever including but not limited to the accuracy or completeness of the information,veracity or accuracy of the information, condition of the Property or its compliance or lack of compliance with applicable governmental requirements,developability, suitability or financial performance of the Property, income or expenses for the Property, the size and square footage of the Property andimprovements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State or Federal regulations, the physicalcondition of the improvements thereon, or the financial condition or business prospects of any tenant or any tenant’s plans or intentions to continueoccupancy of the Property. The Memorandum has selected information relating to the Property and does not purport to be an all - inclusive representationregarding the Property or to contain all or part of the information which prospective investors may require to evaluate the purchase of the Property.Additional information and an opportunity to investigate the Property will be made available to interested and qualified prospective purchasers. Allinformation is based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of Broker,therefore, all information is subject to material variation. The information contained herein is not a substitute for a thorough due diligence investigation.Interested parties are expected to review all information of whatever nature independently and not rely on the contents of this Memorandum in anymanner.
The Property owner (“Owner”) expressly reserves the right, at its sole discretion, to reject any or all offers to purchase the Property, and/or to terminatediscussions at any time with or without notice. The Owner shall have no legal commitment or obligation unless and until written agreement(s) have beenfully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.
MOLLY FIRSTNICO ROSMARIN