7631 alabama ave -...

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7631 Alabama Ave 7631 Alabama Ave • Canoga Park, CA 91304 Cindy Hill, CCIM Senior Vice President 818.846.1611 [email protected] Mark Maccalupo Senior Associate 818.432.1601 [email protected] 4061 Laurel Canyon Blvd. Studio City, CA 91604 www.valleyapartmentsales.com PROPERTY HIGHLIGHTS Over 40% upside in current rents 2 of 5 tenants are month to month for immediate upside opportunity to achieve above market CAP Value-add opportunity with property market proforma over a 5% CAP All suites have approximately 13' - 15' ceiling height and drive in / grade level doors Property has gated / secured parking lot with approximately 30 free surface spaces Prepared By

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7631 Alabama Ave7631 Alabama Ave • Canoga Park, CA 91304

Cindy Hill, CCIMSenior Vice [email protected]

Mark MaccalupoSenior [email protected]

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

PROPERTY HIGHLIGHTSOver 40% upside in current rents●

2 of 5 tenants are month to month for immediate upsideopportunity to achieve above market CAP

Value-add opportunity with property market proforma over a 5%CAP

All suites have approximately 13' - 15' ceiling height and drive in /grade level doors

Property has gated / secured parking lot with approximately 30free surface spaces

Prepared By

INVESTMENT DETAILS

7631 Alabama AveCanoga Park, CA 91304

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 February 2018

Property

Property 7631 Alabama Ave

Property Address 7631 Alabama AveCanoga Park, CA 91304

Year Built 1963

Financial Information

All Cash

Purchase Information

Property Type Industrial

Purchase Price $2,750,000

Tenants 5

Total Rentable Sq. Ft. 13,440

Loans

Type Debt Term Amortization Rate Payment LO Costs

All Cash

Income & Expenses

Gross Operating Income $129,948

Monthly GOI $10,829

Total Annual Expenses ($21,188)

Monthly Expenses ($1,766)

Contact Information

Cindy Hill, CCIM

818.846.1611

[email protected]

00885625

Mark Maccalupo

818.432.1601

[email protected]

01930952

p. 2

EXECUTIVE SUMMARY

7631 Alabama AveCanoga Park, CA 91304

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.

Acquisition Costs

Purchase Price, Points and Closing Costs $2,750,000

Investment - Cash $0

Investment Information

Purchase Price $2,750,000

Price per Tenant $550,000

Price per Sq. Ft. $204.61

Income, Expenses & Cash Flow

Gross Scheduled Income $129,948

Total Vacancy and Credits $0

Operating Expenses ($21,188)

Net Operating Income $108,760

Debt Service $0

Cash Flow Before Taxes $108,760

Financial Indicators

Debt Coverage Ratio N/A

Capitalization Rate 3.95%

Gross Income / Square Feet $9.67

Gross Expenses / Square Feet ($1.58)

Operating Expense Ratio 16.30%

p. 3

PRO FORMA SUMMARY

7631 Alabama AveCanoga Park, CA 91304

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.

INCOME

Description Actual Per SF Market Per SF

Gross Potential Rent $129,948 $9.67 $184,740 $13.75

Less: Vacancy $0 $0.00 ($5,542) ($0.41)

Effective Gross Income $129,948 $9.67 $179,198 $13.33

OPERATING EXPENSES

Description Actual Per SF Market Per SF

Building Insurance $4,500 $0.33 $4,500 $0.33

Cleaning & Maintenance $1,505 $0.11 $1,505 $0.11

Taxes - Real Estate $14,943 $1.11 $31,615 $2.35

Utilities $240 $0.02 $240 $0.02

Total Expenses ($21,188) ($1.58) ($37,860) ($2.82)

NET OPERATING INCOME $108,760 $8.09 $141,338 $10.52

p. 4

PRO FORMA SUMMARY

7631 Alabama AveCanoga Park, CA 91304

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.

TENANT MONTHLY SCHEDULED INCOME

Tenant Actual Market Metro Retro $3,627 $4,115Millwork Resource Inc $1,650 $3,180Fine Woodworking $2,500 $3,180Soliman Inc $2,100 $3,180Jose Ortiz $952 $1,740TOTALS $10,829 $15,395

ANNUALIZED INCOME Description Actual Market

Gross Potential Rent $129,948 $184,740Less: Vacancy $0 ($5,542)Effective Gross Income $129,948 $179,198Less: Expenses ($21,188) ($37,860)Net Operating Income $108,760 $141,338

ANNUALIZED EXPENSES Description Actual Market

Building Insurance $4,500 $4,500Cleaning & Maintenance $1,505 $1,505Taxes - Real Estate $14,943 $31,615Utilities $240 $240Total Expenses $21,188 $37,860Expenses Per RSF $1.58 $2.82

INVESTMENT SUMMARY Price: $2,750,000

Year Built: 1963

Tenants: 5

RSF: 13,440

Price/RSF: $204.61

Lot Size: 24,625 sf

Floors: 1

APN: 2110-021-003

Cap Rate: 3.95%

Market Cap Rate: 5.14%

p. 5

PROPERTY DESCRIPTION

7631 Alabama AveCanoga Park, CA 91304

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.

Canoga Park industrial | Huge upside in rents     KW Commercial is pleased to represent the 5 suite industrial building located in the heart of Canoga Park's Industrialand Commercial district.  

     The property is concrete block construction with no deferred maintenance, totaling 13,440 sqft of rentable space on24,625 sqft of land.  It is zoned LAMR-1 and is located at the end of the Alabama Ave cul-de-sac with a gated andsecured parking for the tenants.  

     Tenants enjoy 30 onsite parking spaces, all suites have drive in / grade level doors, each unit has their ownbathroom and have a 13' to 15' ceiling height.

     All leases are Modified Gross leases with landlord reasonable for tax and property insurance with suites allseparately metered for all utilities. 

     The current rents are over 40% under market for the area, immediate upside with 2 tenants on month to monthleases and others with terms expiring in April 2018 (this tenant has (1) 24 month option), October 2018, and December2020.  An astute investor will take advantage of the tremendous upside in rents on this property. 

p. 6

LEASE RENT ROLL

7631 Alabama AveCanoga Park, CA 91304

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

Suite Tenant Start Date Expire Date RSF $/RSF AnnualizedRent

TenantImprovement Commissions Renewal

TermRenewalIncrease Notes

A Metro Retro 05/01/2017 04/30/2018 4,035 $10.79 $43,524 $0.00 $0.00 1 year $0.00 Tenant has (1) 24 month option

B Millwork Resource Inc 2,650 $7.47 $19,800 $0.00 $0.00 1 year N/A Month to month lease

C Fine Woodworking 11/01/2015 10/31/2018 2,650 $11.32 $30,000 $0.00 $0.00 1 year $0.00 No options available on the lease

D Soliman Inc 01/01/2017 12/31/2020 2,650 $9.51 $25,200 $0.00 $0.00 1 year $0.00 No options available on the lease

E Jose Ortiz 1,450 $7.88 $11,424 $0.00 $0.00 1 year N/A Month to month lease

p. 7

TENANT MIX REPORT

7631 Alabama AveCanoga Park, CA 91304

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.

Suite Tenants Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly

A Metro Retro 4035 $3,627 $3,627 $4,115 $4,115B Millwork Resource Inc 2650 $1,650 $1,650 $3,180 $3,180C Fine Woodworking 2650 $2,500 $2,500 $3,180 $3,180D Soliman Inc 2650 $2,100 $2,100 $3,180 $3,180E Jose Ortiz 1450 $952 $952 $1,740 $1,7405 13,435 $10,829 $15,395

TENANT MIX TENANT MIX SQUARE FEET

● Metro Retro

● Millwork Resource Inc

● Fine Woodworking

● Soliman Inc

● Jose Ortiz

● Metro Retro

● Millwork Resource Inc

● Fine Woodworking

● Soliman Inc

● Jose Ortiz

TENANT MIX INCOME TENANT MIX MARKET INCOME

● Metro Retro

● Millwork Resource Inc

● Fine Woodworking

● Soliman Inc

● Jose Ortiz

● Metro Retro

● Millwork Resource Inc

● Fine Woodworking

● Soliman Inc

● Jose Ortiz

p. 8

PROPERTY PHOTOS

7631 Alabama AveCanoga Park, CA 91304

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.

Front of building Side view

Units have high truss ceilings Units have large door entry

Units have bathrooms cul-de-sac street

p. 9

MAPS AND AERIALS

7631 Alabama AveCanoga Park, CA 91304

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.

p. 10

SALE COMPARABLES

7631 Alabama AveCanoga Park, CA 91304

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.

Subject 2

1%

2%

3%

4%

5%

6%

7%

8%

Avg.

4.0

Cap Rate

Subject 1 2 3 4 5

$31

$62

$93

$124

$155

$186

$217

$248

Avg.

$213.33

Price per Sq. Ft.

p. 11

SALE COMPARABLES

7631 Alabama AveCanoga Park, CA 91304

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.

S 7631 Alabama Ave7631 Alabama AveCanoga Park, CA 91304

Sale Price $2,750,000

Tenants 5

Price/Tenant $550,000

Price/SqFt $204.61

Cap Rate 3.95%

Year Built 1963

1 7630 Alabama Ave, Unit 37630 Alabama Ave, Unit 3Canoga Park, CA 91304

Sale Price $505,000

Tenants 1

Price/Tenant $505,000

Price/SqFt $202.32

Cap Rate N/A

Year Built 1963Sale Date 5/27/2016

2 7901 Canoga Park7901 Canoga ParkCanoga Park, CA 91304

Sale Price $2,525,000

Tenants 7

Price/Tenant $360,714

Price/SqFt $172.47

Cap Rate 4.0%

Year Built 1978Sale Date 7/21/2016

p. 12

SALE COMPARABLES

7631 Alabama AveCanoga Park, CA 91304

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.

3 7742 Deering Ave7742 Deering AveCanoga Park, CA 91304

Sale Price $1,125,000

Tenants 1

Price/Tenant $1,125,000

Price/SqFt $245.20

Cap Rate N/A

Year Built 1961Sale Date 10/16/2017

4 21345 Deering Ct21345 Deering CtCanoga Park, CA 91304

Sale Price $2,160,000

Tenants 1

Price/Tenant $2,160,000

Price/SqFt $200.93

Cap Rate N/A

Year Built 1973Sale Date 5/18/2016

5 21423 Strathern St21423 Strathern StCanoga Park, CA 91304

Sale Price $2,380,000

Tenants 2

Price/Tenant $1,190,000

Price/SqFt $245.72

Cap Rate N/A

Year Built 1963Sale Date 10/25/2017

p. 13

SALE COMPARABLES

7631 Alabama AveCanoga Park, CA 91304

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.

S 7631 Alabama AveCanoga Park, CA, 91304$2,750,000

1 7630 Alabama Ave, Unit 3Canoga Park, CA, 91304$505,000

2 7901 Canoga ParkCanoga Park, CA, 91304$2,525,000

3 7742 Deering AveCanoga Park, CA, 91304$1,125,000

4 21345 Deering CtCanoga Park, CA, 91304$2,160,000

5 21423 Strathern StCanoga Park, CA, 91304$2,380,000

p. 14