401-409 san vicente blvd. · 401 san vicente boulevard | santa monica, ca 90402 the accuracy of all...

401-409 San Vicente Blvd.

Incredible Santa Monica Location17 units

ERROL SPIRO - CEO OF MILLER & DESATNIK REALTY CORP.

PROPERTY DESCRIPTION401 San Vicente Boulevard | Santa Monica, CA 90402

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemedreliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriateprofessionals.

401-409 San Vicente Blvd.

Errol Spiro - CEO & Jon Bloom of Miller & Desatnik areproud to present 401-409 San Vicente Blvd. A truly rareand once in a generation multi-family opportunity. Thisseventeen unit property is in a prime location on thecorner San Vicente Blvd. and 4th Street in Santa Monica.Walking distance to the beach, 3rd St. Promenade andMontana Ave.

The seventeen units consists of 14 - 1 BR + 1 bath and 3 -2 BR + 1 bath units. Value-add opportunity with belowmarket rents. All of units have individual water heaters.Parking structure is in need of the seismic retrofittingwork. Additional income provided by on site laundry andstorage. There are currently two units that are vacant.

First time on the market in almost 30 years! A rareopportunity for any multi-family investor looking to adda highly sought after property to their portfolio.

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PROPERTY SUMMARY401 San Vicente Boulevard | Santa Monica, CA 90402


Property SummaryType: MultiFamily

Price: $8,750,000

Lot Size: 15,590 Sq. Ft.

Building Size: 13,999

Price Per Unit: $514,706

Price Per Rentable SF: 625.04

CAP Rate 2.72%

GRM 19.72

Property OverviewSeventeen units consists of fourteen 1 BR + 1 bath & three 2 BR + 1 bathunits. Additional income generated from on-site laundry and parking.Value-add opportunity with well below market rents. The units are large,averaging 882 SqFt and are well maintained. Beautiful courtyard with afountain surrounded by large trees providing each tenant with lots ofprivacy.

Location OverviewPrime north of Wilshire location at the corner of 4th St & San VicenteBlvd. Directly adjacent to the Santa Monica stairs. Short distance toOcean Ave.., Montana Ave. and 3rd St. Promenade.

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INVESTMENT DETAILS401 San Vicente Boulevard | Santa Monica, CA 90402


Analysis Analysis Date June 2020

Property Property Type MultiFamily Property 401-409 San Vicente Blvd. Address 401 San Vicente Boulevard City, State Santa Monica, CA 90402 Year Built 1953

Purchase Information Purchase Price $8,750,000 Units 17 Total Rentable Sq. Ft. 13,999 Lot Size 15,590 sf

Income & Expense Gross Operating Income $430,624 Monthly GOI $35,885 Total Annual Expenses ($192,375) Monthly Expenses ($16,031)

Financial Information Down Payment $5,250,000

Loans Type Debt Term Amortization Rate Payment LO Costs Interest Only $3,500,000 30 years 0 years 3.25000% $9,479

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EXECUTIVE SUMMARY401 San Vicente Boulevard | Santa Monica, CA 90402


Acquisition Costs Purchase Price, Points and Closing Costs $8,750,000 Investment - Cash $5,250,000 First Loan $3,500,000

Investment Information Purchase Price $8,750,000 Price per Unit $514,706 Price per Sq. Ft. $625.04 Expenses per Unit ($11,316)

Income, Expenses & Cash Flow Gross Scheduled Income $443,805 Total Vacancy and Credits ($13,181) Operating Expenses ($192,375)

Net Operating Income $238,249 Debt Service ($113,750)

Cash Flow Before Taxes $124,499

Financial Indicators Cash-on-Cash Return Before Taxes 2.37% Debt Coverage Ratio 2.09 Capitalization Rate 2.72% Gross Rent Multiplier 19.72 Gross Income / Square Feet $31.70 Gross Expenses / Square Feet ($13.74) Operating Expense Ratio 44.67%

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PRO FORMA SUMMARY401 San Vicente Boulevard | Santa Monica, CA 90402


UNIT MIX & MONTHLY SCHEDULEDType Units Actual Total Market Total1+1 14 $2,137 $29,912 $3,000 $42,0002+1 3 $2,234 $6,701 $4,250 $12,750TOTALS 17 $36,614 $54,750

ANNUALIZED INCOME Description Actual MarketGross Potential Rent $439,365 $657,000 - Less: Vacancy ($13,181) ($19,710) + Misc. Income $4,440 $4,440Effective Gross Income $430,624 $641,730 - Less: Expenses ($192,375) ($192,375)Net Operating Income $238,249 $449,355 - Debt Service ($113,750) ($113,750)Net Cash Flow after Debt Service $124,499 $335,605 + Principal Reduction $0 $0TOTAL RETURN $124,499 $335,605

ANNUALIZED EXPENSES Description Actual MarketProperty Taxes $109,375 $109,375Other Expenses $83,000 $83,000TOTAL EXPENSES $192,375 $192,375EXPENSES PER RSF $13.74 $13.74EXPENSES PER UNIT $11,316 $11,316

INVESTMENT SUMMARY PRICE $8,750,000Year Built 1953Units 17Price/Unit $514,706RSF 13,999Price/RSF $625.04Lot Size 15,590 sfFloors 2APN 4293-001-028Cap Rate 2.72%Market Cap Rate 5.14%GRM 19.72Market GRM: 13.23

FINANCING SUMMARY LOAN AMOUNT $3,500,000Down Payment $5,250,000Loan Type Interest OnlyInterest Rate 3.25%Term 30 yearsMonthly Payment $9,479DCR 2.09

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UNIT RENT ROLL401 San Vicente Boulevard | Santa Monica, CA 90402


Unit Description Approx. Sq. Ft. Current Rent Pro FormaRent Comments

1 1+1 930 $2,201 $3,000

2 1+1 850 $2,552 $3,000

3 1+1 850 $865 $3,000

4 1+1 850 $2,880 $3,000

5 1+1 850 $2,402 $3,000

6 1+1 850 $1,953 $3,000

7 2+1 1,010 $3,500 $4,250

8 1+1 850 $3,000 $3,000 Vacant - Projected9 1+1 850 $876 $3,000

10 1+1 850 $2,402 $3,000

11 2+1 1,010 $1,440 $4,250

12 1+1 850 $2,020 $3,000

13 2+1 1,010 $1,761 $4,250

14 1+1 850 $3,000 $3,000 Vacant - Projected15 1+1 850 $2,184 $2,184 Managers Unit16 1+1 850 $876 $3,000

17 1+1 850 $2,700 $3,000

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BUSINESS MAP401 San Vicente Boulevard | Santa Monica, CA 90402

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LOCATION MAP401 San Vicente Boulevard | Santa Monica, CA 90402

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PROPERTY PHOTOS401 San Vicente Boulevard | Santa Monica, CA 90402

LOCATIONLOCATION OVERVIEW

SANTA MONICA, CALIFORNIA

One of the most desirable addresses for both living and working, Santa Monica offers a walkabledowntown, a blossoming public transportation system, and several notable tourist destinations.Known for its sunshine and beaches, Santa Monica prides itself as a national model for progressiveissues, including social services, quality of life for local residents, and environmental leadership.Median family income is $110,000 and average home prices are $1.1 million resulting in beautifulneighborshoods and incredible ROI for real estate investors.

This urban village has spectacular views of its vast white sand beaches from Palisades Park,exceptional shopping on Third Street Promenade, main Street and Montana Avenue, and theregion’s most renowned restaurant scene. Santa Monica stretches for about two miles along thecoast before joining up with Venice Beach.

A population of nearly 90,000 and a daytimeworkforce of about 80,000 makes SantaMonica’s labor force participation rateamong the highest in the world and asubstantial daily in-migration of employees.Major employers include UCLA Hospital, St.John’s Health Center, RAND Corporation,Universal Music Group, Activision and SantaMonica College.

Silicon Beach is the Westside region of theLos Angeles metropolitan area that is hometo over 500 tech startup companies. Majortechnology companies have opened officesin the region including Google, Yahoo!,YouTube, BuzzFeed, Facebook, AOL,Electronic Arts, EdgeCast Networks, andMySpace. The region is considered thesecond- or third-largest tech hub in the world,according to various reports. This has hadmajor impacts on the type and availabilityof office space and on home prices in PlayaVista, Playa Del Rey, Westchester, SantaMonica, and Venice, as these areas havebecome more desirable due to this influx.The effects are also spilling over into Marina del Rey which is attracting tech firms.

The Expo Line is a light-rail line that runs between Downtown Los Angeles and Santa Monica. Theline is named “Expo” after Exposition Boulevard, which it runs alongside for most of its route. It isone of the six lines in the Metro Rail system, and is operated by the Los Angeles CountyMetropolitan Transportation Authority (Metro).

Abbot Kinney

GOOGLE HQ

HARD ROCK CAFEBLUE BOTTLE COFFEE

DEMOGRAPHICS401 San Vicente Boulevard | Santa Monica, CA 90402


Population 1 Mile 3 Miles 5 MilesMale 11,373 60,598 153,360Female 12,630 64,537 159,749Total Population 24,003 125,135 313,109

Age 1 Mile 3 Miles 5 MilesAges 0-14 2,866 15,784 38,520Ages 15-24 1,940 10,534 24,993Ages 25-54 9,788 53,457 150,684Ages 55-64 3,942 19,946 44,335Ages 65+ 5,467 25,414 54,577

Race 1 Mile 3 Miles 5 MilesWhite 21,958 106,583 238,756Black 85 2,103 5,999Am In/AK Nat 1 53 211Hawaiian 2 5 34Hispanic 1,064 11,910 39,214Multi-Racial 1,600 16,224 55,248

Income 1 Mile 3 Miles 5 MilesMedian $107,946 $82,382 $77,892< $15,000 1,469 6,701 16,962$15,000-$24,999 1,051 4,442 10,777$25,000-$34,999 729 4,128 9,804$35,000-$49,999 1,026 5,745 14,263$50,000-$74,999 1,539 8,853 21,916$75,000-$99,999 1,412 7,102 16,849$10,0000-$149,999 2,072 9,914 23,078$150,000-$199,999 1,016 5,031 11,062> $200,000 2,565 10,697 23,057

Housing 1 Mile 3 Miles 5 MilesTotal Units 15,014 70,501 168,040Occupied 13,616 64,925 153,790Owner Occupied 4,695 23,492 56,008Renter Occupied 8,921 41,433 97,782Vacant 1,398 5,576 14,250

WHY WORK WITHMILLER & DESATNIK REALTY CORP.For over 52 years, Miller & Desatnik Realty Corp has sold some of the largest multi-family homes in Los Angeles.

Miller & Desatnik Realty Corp. is a full-service Real Estate Brokerage offering the following dedicated services to help our clients meet their investment objectives.

We are a full-service real estate brokerage with a thorough knowledge of the multi-family market. Comprised of highly experienced and skilled associates who have the expertise to satisfy the needs of multi-family investors. Miller & Desatnik Realty Corp. has sold over one billion in investment properties in the last several years.

Questions? Call (310) 202-9166 to speak with one of our qualified agents about how we can put these services to work for you.

Our Services

• Real Estate Acquisition and Disposition• Marketing Services• Consulting and Advisory Services• Experienced in 1031 Exchanges• Market Studies• Rent Comparables• Sales Comparables• Property Value Opinion• Knowledge of Available Financing• Knowledge of Available Property Management Services

3627 Motor Avenue | Los Angeles, California 90034 | Office: 310.202.9166CA RE License #01187022

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Errol SpiroChief Executive Officer

[email protected]. 303

Errol Spiro is the CEO of Miller & Desatnik Realty Corp. He is considered a leader in the sale of multi family investment properties in Los Angeles. Errol joined the firm in 1985 and since then has demon-strated his expertise in the multi-family real estate market by consistently netting his clients top dollar and setting some of the markets most impressive closings. His accomplishments are in large part due to his strategic and extensive marketing ingenuity of properties to numerous potential buyers and brokers. Clients have come to rely on Errol’s extensive scope of expertise, steadfast commitment to client service, and an uncompromising dedication to his clients.

Errol’s mission has been and will always be to develop long-term relationships and help his clients accumulate a real estate portfolio. Errol ensures a secure investment for equity growth, while always maintaining complete honesty with the client.

Errol not only shows dedication and integrity in his work, but also in his personal life. Errol is a founding member of the Co-Mentor Group for emancipated foster youth, affiliated with Southern California Foster Family and Adoption Agency. He is also a board member of Wolf Connection, which helps at risk kids through the therapeutic connection between human and animal. During his time out of the office, Errol enjoys hiking, gardening, photography, and music. He earned his Bachelor of Arts at Cali-fornia State University, Northridge in Finance and Real Estate.


Jon BloomInvestment Property Specialist


Investment Property Specialist

Jon Bloom is an Investment Property Specialist at Miller and Desatnik Realty Corp. Before working at Miller and Desatnik, Jon worked in management consulting and as a leasing agent and property manager. It was during him brief time in property management that he began to learn the ins and outs of the multi-family business.

Jon specializes in multi-family and land sales for new multi-family development projects. Over his career he has sold several large development sites in prime Los Angeles areas. He prides himself in understanding new initiatives and zoning changes and how those impact a properties value. Jon prides himself in being a good listener to his client needs and approaches each transaction with enthusiasm and a high level of accountability and professionalism.

Jon holds a History degree from The University of Oregon and a masters from University of Southern California Price’s School of Public Policy. Outside of the office Jon enjoys a good bottle of wine, golfing and traveling with his wife.

[email protected]: 310-883-4530

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