the emerald - loopnet · emerald, an eight unit apartment community located at 1016 north market...

THE EMERALD

O F F E R I N G M E M O R A N D U M

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N OT I C EN O N - E N D O R S E M E N T SMarcus & 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.

D I S C L A I M E RTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressor implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

T H E E M E R A L D1016 N O R T H M A R K E T S T R E E T

I N G L E W O O D, C A , 90302

O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A

WWW.MARCUSMILLICHAP.COM

07 21PROPER T Y ANALYSISS E C T I O N 1 Location Overview • Executive Summary • Investment Overview • Market Overview • Financial Summary • Comparable Properties • Demographics

TA B L E O F CO N T E N T S

PRESENTED BY

T H E E M E R A L D

1016 N O R T H M A R K E T S T R E E TI N G L E W O O D , C A , 9 0 3 0 2

F INANCIAL ANALYSISS E C T I O N 2 Pricing Details • Operating Data • Sales Comparables • Rent comparables

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 infor-mation. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment

Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID ZAA0140047

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PROPER T YANALYSIS

1016 NORTH MARKET STREET

O F F E R I N G H I G H L I G H T S

O F F E R I N G P R I C E

$2,100,000C A P R AT E

2.92%

VITAL DATA

Price $2,100,000

Cap Price 2.92%

GRM 17.68

Price per Unit $262,500

Price per Square Foot $348.43

Rentable Square Feet 6,027

Number of Units 8

1016 N O R T H M A R K E T S T R E E TI N G L E W O O D , C A , 9 0 3 0 2

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I N V E S T M E N T O V E R V I E WMarcus & Millichap, as the exclusive listing agent, is proud to present The Emerald, an eight unit apartment community located at 1016 North Market Street in Inglewood, California.

Located in a gentrifying North Inglewood submarket, the building features 6,027 square feet of gross area and it sits on a 6,558 square foot lot. Built in 1964, the asset is comprised of a terrific unit mix of five one-bedroom/one-bathroom units, two two-bedroom/one-bathroom units and one three-bedroom/two-bathroom unit.

The building is located just north of Centinela Avenue and east of North La Brea Avenue. The offering is just a few miles away from the revamped Forum and the new Hollywood Park redevelopment site. The new NFL stadium, along with a 300‐room hotel, over 3,000 units and new retail and office space will be going into the site.

This property provides a great value add opportunity with current rents well below market value. 1016 North Market Street can be a terrific addition to any investor’s portfolio.

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► Attractive North Inglewood Location ► Value-Add Opportunity with Below

Market Rents ► Borders Residential Community of

Ladera Heights ► Walking Distance to Major Retailers Such

as Ralphs and Dollar Tree ► Easy Access to Major Employment Hubs

of the Westside ► Two Double Car Garages with Ample

Covered Spaces ► Secured Gated Access ► Individually Metered

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P R O P E R T Y P H OTO S

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P R O P E R T Y D E TA I L S

Property Address1016 North Market Street

Inglewood, CA, 90302

Number of Units 8

Number of Buildings 1

Year Built 1964

Lot Size 6,558 SF

Parking18 Spaces – 16 Tandem Spaces &

2 Two Car Garages

Zoning INC2YY

APN (Parcel No.) 4014-032-023

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MARKE TINGTEAM

PROPERTY NAME HERE

LOCATION OVERVIEW

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THE SOUTH BAYThe South Bay is a region of the Los Angeles metropolitan area which contains fifteen cities plus portions of the City of Los Angeles and unincorporated portions of the County of Los Angeles. The area

is bounded by the Pacific Ocean on the south and west and generally by the City of Los Angeles on the

north and east. Its name comes from its location on the south end of the Santa Monica Bay.

Major areas of the South Bay include: the beach cities of Manhattan Beach, Hermosa Beach, and

Redondo Beach, a popular destination for swimmers, surfers, bodyboarders, and other beachgoers;

the Palos Verdes Peninsula, home to the affluent communities of Palos Verdes Estates, Rancho Palos

Verdes, Rolling Hills, and Rolling Hills Estates; the Los Angeles harbor neighborhoods of San Pedro

and Wilmington; and the inland cities of Inglewood, Hawthorne, Gardena, Lawndale, Lomita, and

Carson. The Harbor (110), San Diego (405), Gardena (91), and Century (105) Freeways provide the

region with its principal transportation links to the rest of Southern California.

The South Bay is heavily reliant on the aerospace and automotive industries, and is home to numerous

industry headquarters. It has two major transportation hubs on its borders — Los Angeles International Airport and the Ports of Los Angeles and Long Beach and the Pacific Ocean is at its back door. These

factors, and its diverse cities, make it economically, geographically and socially unique.

LA STADIUM AT HOLLYWOOD PARK

V IEW OF SOUTH BAY

M A J O R I N D U S T R I E S

SPACEX

AEROSPACE | HAWTHORNE

Space Exploration Technologies Corp., doing business as SpaceX, is a private

American aerospace manufacturer and space transport services company

headquartered in Hawthorne, California. It was founded in 2002 by

entrepreneur Elon Musk with the goal of reducing space transportation

costs and enabling the colonization of Mars. SpaceX has since developed the

Falcon launch vehicle family and the Dragon spacecraft family, which both

currently deliver payloads into Earth orbit.

TESLA

AUTOMOTIVE & ENERGY | HAWTHORNE

Tesla is an American company that specializes in electric automotives, energy

storage and solar panel manufacturing, whose design studio is located in

Hawthorne. Founded in 2003, the company specializes in electric cars,

lithium-ion battery energy storage, and residential photovoltaic panels

(through the subsidiary company SolarCity). The additional products Tesla

sells include the Tesla Powerwall and Powerpack batteries, solar panels and

solar roof tiles.

S O U T H B A Y

HONDA

AUTOMOTIVE | TORRANCE

The American Honda Motor Company, Inc. is a North American subsidiary of

the Honda Motor Company, Ltd., founded in 1959. The company combines

product sales, service and coordinating functions of Honda in North America,

and is responsible for distribution, marketing and sales of Honda and Acura

brand automobiles, Honda power sports products, including motorcycles,

scooters and all-terrain vehicles, and Honda power equipment products,

including lawnmowers, tillers, string trimmers, generators, small

displacement general-purpose engines and marine outboard engines.

CHEVRON

OIL REFINING | EL SEGUNDO

Chevron Corporation is an American multinational energy corporation, one

of the successor companies of Standard Oil. Chevron is engaged in every

aspect of the oil, natural gas, and geothermal energy industries. The Chevron

El Segundo Refinery is the largest producing oil refinery on the west coast,

processing more than 274,000 barrels of crude oil per day. It provides jobs for

more than 1,100 Chevron employees and 500 contractors, covers approximately

1,000 acres, and has more than 1,100 miles of pipelines. Transportation fuels –

gasoline, jet and diesel – are the primary products refined from the crude oil.

S O U T H B A Y

HONDA

AUTOMOTIVE | TORRANCE

The American Honda Motor Company, Inc. is a North American subsidiary of

the Honda Motor Company, Ltd., founded in 1959. The company combines

product sales, service and coordinating functions of Honda in North America,

and is responsible for distribution, marketing and sales of Honda and Acura

brand automobiles, Honda power sports products, including motorcycles,

scooters and all-terrain vehicles, and Honda power equipment products,

including lawnmowers, tillers, string trimmers, generators, small

displacement general-purpose engines and marine outboard engines.

CHEVRON

OIL REFINING | EL SEGUNDO

Chevron Corporation is an American multinational energy corporation, one

of the successor companies of Standard Oil. Chevron is engaged in every

aspect of the oil, natural gas, and geothermal energy industries. The Chevron

El Segundo Refinery is the largest producing oil refinery on the west coast,

processing more than 274,000 barrels of crude oil per day. It provides jobs for

more than 1,100 Chevron employees and 500 contractors, covers approximately

1,000 acres, and has more than 1,100 miles of pipelines. Transportation fuels –

gasoline, jet and diesel – are the primary products refined from the crude oil.

LA STADIUM AT HOLLYWOOD PARK

The Los Angeles Stadium and Entertainment District at Hollywood Park is transforming

the site of the former Hollywood Park Racetrack to a year-round sports and

entertainment destination for the enjoyment of people throughout Southern

California as well as visitors to the region. This will be the new “must-see”

entertainment destination and gathering spot in the center of the Los Angeles basin

and in the heart of the South Bay region.

This monumental project covers 298 acres located two miles off the I405-, one and

a half miles off the I105-, and four miles from Los Angeles International Airport. The

centerpiece of the district is a -70,000seat stadium that will be the home of NFL

games for both the Los Angeles Chargers and Los Angeles Rams. The stadium will

feature sporting events including the Super Bowl and the Opening and Closing

ceremonies of the 2028 Olympics being held in Los Angeles, as well as major concerts

and other entertainment year-round.

PLANS FOR THE DISTRICT INCLUDE:

► 70,000 Seat Open Air Stadium, Expandable up to 100,000 Seats

► 6,000 Seat Performing Arts Venue

► 780,000 Square Feet of Office Space

► 890,000 Square Feet of Retail Space

► 300 Hotel Rooms

► 2,500 Modern Residences

► Approximately 25 Acres of Public Parks, Open Space, Pedestrian Walkways and Bicycle Paths

► Family and Fine Dining

► State-of-The-Art Event, Conference and Meeting Space

TRANSPORTATION

The South Bay is home to Los Angeles’ two largest transportation hubs — Los

Angeles International Airport and the Ports of Los Angeles and Long Beach.

It is served by the Harbor (110), San Diego (405), Gardena (91), and Century

(105) Freeways, as well as the Metro Green and Silver (Rapid Bus) lines.

METRO GREEN LINE EXTENSION

Bolstered by $619 million from the Measure M sales tax, Metro is forging ahead

with plans to extend service on the Green and Crenshaw/LAX Lines 4.6 miles

southward to a new transit center in Torrance. The light rail extension would

primarily traverse the Harbor Subdivision - a historic freight rail right-of-way

which runs along a meandering route between Downtown and the Port of Los

Angeles. Metro is also considering a second alternative, which would see

trains routed down Hawthorne Boulevard between the 405 Freeway and 190th

Street in Redondo Beach, before returning to the Harbor Subdivision.

Metro Green Line

Metro Silver Line (Rapid Bus)

Metro Blue Line



MARKE TINGTEAM

PROPERTY NAME HERE

FINANCIAL ANALYSIS1016 NORTH MARKET STREET

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R E N T R O L L

*Square Footage of units are estimated

UNIT NUMBER UNIT TYPE UNIT SQFT CURRENT RENT RENT PER SQFT ASKING RENT RENT PER SQFT

1 2 Bed / 1 Bath 850 $1,375 $1.62 $2,000 $2.35

2 1 Bed / 1 Bath 625 $1,050 $1.68 $1,600 $2.56

3 1 Bed / 1 Bath 625 $1,050 $1.68 $1,600 $2.56

4 1 Bed / 1 Bath 625 $1,050 $1.68 $1,600 $2.56

5 2 Bed / 1 Bath 850 $1,575 $1.85 $2,000 $2.35

6 1 Bed / 1 Bath 625 $1,050 $1.68 $1,600 $2.56

7 1 Bed / 1 Bath 625 $1,050 $1.68 $1,600 $2.56

8 3 Bed / 2 Bath 1,200 $1,700 $1.42 $2,350 $1.96

Totals 6,027 $9,900 $14,350

1016 N O R T H M A R K E T S T R E E TI N G L E W O O D , C A 9 0 3 0 2

# OF UNITS UNIT TYPE SQFT/UNIT CURRENT RENTS INCOME PRO FORMA RENTS PRO FORMA INCOME

5 1 Bed / 1 Bath 625 $1,050 $5,250 $1,600 $8,000

2 2 Bed / 1 Bath 850 $1,375 - $1,575 $2,950 $2,000 $4,000

1 3 Bed / 2 Bath 1,200 $1,700 $1,700 $2,350 $2,350

TOTALS 6,027 $9,900 $14,350

F I N A N C I A L O V E R V I E W

PRICE $2,100,000

Number of Units 8

Cap Rate - Current 2.92%

Cap Rate - Pro Forma 5.45%

GRM - Current 17.68

GRM - Pro Forma 12.20

Price per Unit $262,500

Rentable SQFT 6,027

Price per SQFT $348.43

Lot Size 6,558

Year Built 1964

Type of Ownership Fee Simple

INCOME CURRENT PRO FORMA

Gross Scheduled Rent $118,800 $172,200

Other Income (Laundry) N/A $1,200

Other Income (Garage) N/A $2,400

Gross Potential Income $118,800 $175,800

Less: Vacancy/Deductions 3.00% $3,564 3.00% $5,166

Effective Gross Income $115,236 $170,634

Less: Expenses 46.77% $53,893 32.88% $56,109

Net Operating Income $61,343 $114,525

EXPENSES CURRENT PRO FORMA

Real Estate Taxes $27,056 $27,056

Insurance $2,410 $2,410

Water/Trash $9,228 $9,228

Electricity $707 $707

Gas $2,843 $2,843

Repairs & Maintenance $4,000 $4,000

Reserves & Replacements $1,600 $1,600

Management Fee $4,609 $6,825

Landscaping $1,440 $1,440

Total Expenses $53,893 $56,109

Expenses/Unit $6,737 $7,014

Expenses/SF $8.94 $9.31

% of EGI 46.77% 32.88%

S A L E S CO M PA R A B L E S – S U M M A R Y

Average Cap Rate

Average Price per Unit

Average GRM

Average Price per SQFT

Avg 3.89%

Avg $270,000Avg $352.59

Avg 15.71

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814 N O R T H M A R K E T S T R E E TInglewood, CA 90302

1016 NORTH MARKET STREETInglewood, CA 90302

1

S A L E S CO M PA R A B L E S

SALES PRICE $2,100,000

Year Built 1964

Number of Units 8

Price Per Unit $262,500

Price Per SQFT $348.43

Cap Rate 2.92%

GRM 17.68


Sale Date 01/18/2018

Year Built 1960

Number of Units 5



UNIT MIX

5 1 Bed / 1 Bath

2 2 Bed / 1 Bath

1 3 Bed / 2 Bath

UNIT MIX

4 1 Bed / 1 Bath

1 3 Bed / 2 Bath

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UNIT MIX

1 Studio / 1 Bath

3 1 Bed / 1 Bath

1 3 Bed / 2 Bath

820 CO R Y D R I V EInglewood 90302

823 S O U T H G R E V I L L E A AV E N U EInglewood 90301

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UNIT MIX

4 1 Bed / 1 Bath

2 2 Bed / 1 Bath



Year Built 1964

Number of Units 5



Cap Rate 3.92%

GRM 15.56



Year Built 1954

Number of Units 6



Cap Rate 3.86%

GRM 15.85 10

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R E N T CO M PA R A B L E S – S U M M A R Y

UNIT TYPE RENT

1. 875 Glenway Avenue 1 Bed / 1 Bath $1,650

2. 821 Austin Avenue 1 Bed / 1 Bath $1,800

3. 909 West Beach Boulevard 1 Bed / 1 Bath $1,625

3. 909 West Beach Boulevard 2 Bed / 1.5 Bath $2,050

4. 702 Venice Way 2 Bed / 2 Bath $2,100

5. 310 South Eucalyptus Avenue 3 Bed / 2.5 Bath $2,350

6. 326 East Hazel Street 3 Bed / 3 Bath $2,400

7. 560 West Olive Street 3 Bed / 3 Bath Twnhs $2,700

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875 G L E N WAY AV E N U EInglewood, CA 903021016 N O R T H M A R K E T S T R E E T

Inglewood, CA 90302

1

R E N T CO M PA R A B L E S

Number of Units 48

Year Built 1964

UNIT T YPE RENT

1 Bed / 1 Bath $1,050

2 Bed / 1 Bath $1,375 - $1,575

3 Bed / 2 Bath $1,700

UNIT T YPE RENT

1 Bed / 1 Bath $1,650

Number of Units 8

Year Built 1964

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909 W E S T B E AC H B O U L E VA R DInglewood, CA 90302

821 AU S T I N AV E N U EInglewood, CA 90302

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UNIT T YPE RENT

1 Bed / 1 Bath $1,800

UNIT T YPE RENT

1 Bed / 1 Bath $1,625

2 Bed / 1.5 Bath $2,050

Number of Units 24

Year Built 1989

Number of Units 8

Year Built 1962

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702 V E N I C E WAYInglewood, CA 90302

4 310 S O U T H E U C A LY P T U S AV E N U EInglewood, CA 90301

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UNIT T YPE RENT

2 Bed / 2 Bath $2,100

UNIT T YPE RENT

3 Bed / 2.5 Bath $2,350

Number of Units 47

Year Built 1961

Number of Units 8

Year Built 1964

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560 W E S T O L I V E S T R E E TInglewood, CA 90301

326 E A S T H A Z E L S T R E E TInglewood, CA 90302

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UNIT T YPE RENT

3 Bed / 3 Bath $2,400

UNIT T YPE RENT

3 Bed / 3 Bath $2,700

Number of Units 7

Year Built 1993

Number of Units 12

Year Built 2007

the emerald - loopnet · emerald, an eight unit apartment community located at 1016 north market...

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