offering memorandum 6 units | 3+4 bedrooms offering ... · offering memorandum | 1288 barry ave.,...

Offering Memorandum | 1288 Barry Ave., Los Angeles

1OFFERING MEMORANDUM

1288 BARRY AVELOS ANGELES, CA 90025

6 UNITS | 3+4 Bedrooms

• STELLAR WEST L.A. LOCATION

• LARGE 3- & 4-BEDROOM UNITS

• SOFT-STORY SEISMIC RETROFIT COMPLETED BY SELLER

David Weinberger818.970.0915

[email protected] DRE #01349349

Phil Seymour310.612.9800

[email protected] #00630158

www.TheSeymourGroup.net

DRE #01428774

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2DISCLAIMER

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due dili-gence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or rel-evance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental lim-itations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal ques-tions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appro-priate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Commercial in compliance with all applicable fair housing anvd equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or with-drawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.


3TABLE OF CONTENTS

Executive Summary

Property Information

Market Overview

Financials

• Interior Photos

• Floor Plan

• Exterior Photos

• Aerial Photos

1288 Barry Ave., Los Angeles

EXECUTIVE SUMMARY


5EXECUTIVE SUMMARY

PROPERTY DETAILSHIGHLIGHTS

Assessors Parcel Number:

Buildings:

Year Built:

Land Use:

Zoning:

Stories:

Parking Spaces:

426-0301-3036

One

1960

Apartments

LAR3

2

5

1288 Barry Avenue, is a 6,797 SF multifamily property located in the vibrant area of West L.A.. The property resides on a 6,266 square foot lot.

• LIST PRICE $4,495,000

• STELLAR WEST L.A. LOCATION

• LARGE 3- & 4-BEDROOM UNITS

• SOFT-STORY SEISMIC RETROFIT COMPLETED BY SELLER

*Buyer to cooperate with Seller’s 1031 Exchange


6

1288 Barry Avenue, built in 1960, is located on a tree lined street adjacent to Stoner Park and Wilshire Blvd where tenants can dine, shop, ride bikes or indulge in dinner at the neighborhood restaurant Bandera known for it’s kitchen in the round.

The unit mix is comprised of (Three) 3 Bedroom + 2 Bathroom units, (Two) 4 Bedroom + 3 Bathroom units, and (One) Studio.

The location of the property is in the highly coveted area of West L.A. known for its cultural diversity, multitude of entertainment options, eclectic retail, and food options.

PROPERTY HIGHLIGHTS


7PROPERTY INFORMATION

6Total Unit

1960

6,286 SF

Year Built

Lot Size

6,787 SF

5 SPACES

Building Size

Parking


PROPERTY HIGHLIGHTS


9PROPERTY HIGHLIGHTS

THE OPPORTUNITY:

1288 Barry Ave offers investors a unique and rare opportunity to acquire a high yield investment opportunity with low operating expenses in a highly desirable location for investors and renters.

LOCATION, LOCATION, LOCATION:

MULTIPLE OPTIONS FOR INVESTORS:

GREAT WALKABILITY:

TRANSIT ORIENTED:

UNIVERSITY OF CALIFORNIA LOS ANGELES:

West L.A. is one of the most stable rental markets with historically low vacancy rates and long-term appreciation. Residents also enjoy the history, architecture, diversity, community, walkability, food options, outdoor activities and freeway access this area provides.

Located close to major freeways and bus lines that can take tenants across the city. Minutes to Century City, Westwood Village, UCLA, and Beverly Hills

Just a 7 minute drive away is UCLA a flourishing four-year institution in Southern California offering undergraduate and graduate degree programs in a wide range of disciplines. With an approximate enrollment of 28,000 undergraduate and 12,000 graduate students, UCLA is the university with the largest enrollment in the state of California and the most popular university in the United States by number of applicants.

With a 85 Walk Score, 1288 Barry Avenue is a “Very Walkable” location where daily errands can be done without a vehicle. Residents can walk to their favorite restaurant, bar, grocery store or one of the many parks close by.

Several opportunities are in play for income with various options that most properties don’t present, but 1288 Barry Ave does.

• Option # 1 – Continue to operate 1288 Barry Ave as an apartment building and rehab units as natural attrition occurs.

• Option # 2 – Sell each unit off utilizing the TIC (Tenants In Common) model as they become available.

LACK OF HOUSING AFFORDABILITY:There is a significant affordability gap to home ownership in West L.A.. The median home price in the area is approximately $2,219,120. A typical monthly mortgage payment is approximately 6 times more than the average rent at 1288 Barry Avenue.

85Walk Score


10

ZIMAS PUBLIC Generalized Zoning 09/23/2019City of Los Angeles

Department of City Planning

Address: 1288 S BARRY AVE Tract: ARTESIAN TRACT Zoning: [Q]R3-1APN: 4263013036 Block: 58 General Plan: Medium ResidentialPIN #: 129B149 194 Lot: FR 37

Arb: 2


11UNIT # 1 3+2 | INTERIOR PHOTOS

DW

LIVING ROOM11'11" x 23'2"

FOYER11'11" x 4'11"

DINING9'3" x 11'5"

KITCHEN7'11" x 14'11"

BEDROOM14'1" x 12'7"BATH

5'1" x 9'

MASTER BEDROOM13'10" x 11'6"

BATH8'8" x 3'10"

BEDROOM11'7" x 11'

DECK12'3" x 7'7"

FLOOR 1GROSS INTERNAL AREA

TOTAL: 1,229 sq ftFLOOR 1: 1,229 sq ft

DECK: 93 sq ftSIZE AND DIMENSIONS ARE APPROXIMATE, ACTUAL MAY VARY.

UNIT # 1 3+2FLOOR PLANOffering Memorandum1288 Barry Ave., Los Angeles

DW

LIVING ROOM11'11" x 23'2"

FOYER11'11" x 4'11"

DINING9'3" x 11'5"

KITCHEN7'11" x 14'11"

BEDROOM14'1" x 12'7"BATH

5'1" x 9'

MASTER BEDROOM13'10" x 11'6"

BATH8'8" x 3'10"

BEDROOM11'7" x 11'

DECK12'3" x 7'7"

FLOOR 1GROSS INTERNAL AREA

TOTAL: 1,229 sq ftFLOOR 1: 1,229 sq ft

DECK: 93 sq ftSIZE AND DIMENSIONS ARE APPROXIMATE, ACTUAL MAY VARY.

CLOSETCLOSET


15EXTERIOR PHOTOS


16AERIAL PHOTOS


MARKET OVERVIEW


18

Santa Monica, California offers more than its beach and year-round warm weather. Its proximity to the greater Los Angeles area makes Santa Monica the perfect place to visit and live.


19

Offering Memorandum | 1288 Barry Ave., Los AngelesLOCAL AMENITIES


21

Subject Property is 1.2 miles from trendy Sawtelle Japantown, where you can grab a tasty bowl of ramen.


22

Subject Property is 1 mile from the 405 Freeway, 2.3 miles from UCLA, and 3.6 miles from Century City.


23

The subject property is only 3 miles from Santa Monica’s beautiful beaches.


24WALKABILITY

85

7 5 15

67

71

VeryWalkable

GoodTransit

VeryBikeable

Most errands can be accomplished on foot.

Many nearby public transportation options.

1288 Barry Avenue has a Walk Score of 85 out of 100. This location is Very Walkable so most errands can be accomplished on foot.

This location is in the West Los Angeles neighborhood in Los Angeles. Nearby parks include Westwood Recreation Center, Stoner Recreation Center and Jackie Robinson Stadium.

MINUTES TOUCLA

MINUTES TOBRENTWOOD

MINUTES TOSANTA MONICA

Mostly flat, some bike lanes.


25

Total Businesses Total Employees

KEY FACTS

BUSINESS

Median HouseholdIncomeAverage

Household Size

Median Age

DEMOGRAPHICS

2020 Summary 1 Mile 3 Miles 5 Miles

Population 47,208 250,959 244,851

Households 23,958 114,895 530,799

Families 24,045 48,094 120,225

Average Household Size 1.7 1.86 2.01

Owner Occupied Units 3,265 21,228 53,070

Renter Occupid Units 15,568 46,704 116,760

Median Age 33 37.2 38.3

Average Household Income 92,974 120,089 120,209

2025 Summary 1 Mile 3 Miles 5 Miles

Population 47,231 252,33 $246,197

Households 24,518 119,895 538,299

Families 23,245 50,094 125,034

Average Household Size 2 1.91 2.05

Owner Occupoied Units 3,765 24,378 61,170

Renter Occupied Units 15,723 47,171.00 117,343

Median Age 33 37.8 38.1

Average Household Income $118,447 $147,632 $120,329


FINANCIALS


27FINANCIALS

FINANCIAL INDICATORS

Offering Price $4,495,000

Current CAP 4.3%

Market CAP 4.7%

Current GRM 16.6

Market GRM 15.5

Cost Per SF $662

Cost Per Unit $749,167

Cash on Cash Return 4.3%

Expenses Per Unit $12,011

Expenses Per Sq Ft $10.62

BUILDING DATA

Units 6

Year Built 1960

Lot Sq Ft 6,286

Bldg Gross Sq Ft 6,787

Parking Spaces 5

ESTIMATED ANNUALIZED EXPENSES

New Property Taxes $52,784

So Cal gas $845

LADWP $5,662

Trash Service $2,580

Property Insurance $3,110

Maintenance & Repairs $5,562

Pest Control, Gardner $1,525

Total Estimated Expenses -$72,068

SOURCE OF INCOME CURRENT RENTS MARKET RENTS

# of Units Unit Type Avg. Rent Total Avg. Rent Income

3 3 Bed / 2 bath $3,727 $11,181 $3,972 $11,916

2 4 Bed / 3 bath $4,850 $9,700 $5,200 $10,400

1 Studio $1,555 $1,555 $1,750 $1,750

Total Rental Income $22,436 $24,066

Laundry Income $90 $90

Total Monthly Income $22,526 $24,156

Total Annual Income $270,317 $289,877

EST. ANNUALIZED OPERATING DATA CURRENT MARKET

Scheduled Gross Income $270,317 $289,877

Less Vacancy 2.0% ($5,406) 2.0% ($5,798)

Gross Operating Income $264,911 $284,079

Less Expenses 27% ($72,068) 25% ($72,068)

Net Operating Income $192,843 $212,012

Notations:1) Real Estate Taxes have been underwritten based a tax rate of 1.1742792) Property Insurance: Based on actual expenses from 7/18 - 7/193) Maintenance & Repairs: Based on actual expenses from 7/18 - 7/194) Pest Control & Gardner: Based on actual expenses from 7/18 - 7/195) Reserves & Replacements : Based upon $450 per unit per year.6) LADWP: Based on actual expenses from 7/18 - 7/197) Trash Service: Based on actual expenses from 7/18 - 7/198) So Cal Gas: Based on actual expenses from 7/18 - 7/19


28RENT ROLL

UNIT STATUS UNIT TYPE NOTATIONS CURRENT RENTPOST RENOVATION

MARKET RENT

1 Tenant 3 Bed /2 Bath PATIO $3,916 $3,916

2 Tenant Studio $1,555 $1,750

3 Tenant 4 Bed / 3 Bath $5,200 $5,200

4 Tenant 3 Bed / 2 Bath $3,605 $4,000

5 Tenant 4 Bed / 3 Bath $4,500 $5,200

6 Tenant 3 Bed / 2 Bath $3,660 $4,000

TOTAL: $22,436 $24,066

Offering Memorandum1288 Barry Avenue, Los Angeles, CA 90025

6 Units | $4,495,000

David Weinberger818.970.0915

[email protected] DRE #01349349

Phil Seymour310.612.9800

[email protected] #00630158

www.TheSeymourGroup.net

DRE #01428774

offering memorandum 6 units | 3+4 bedrooms offering ... · offering memorandum | 1288 barry ave.,...

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