cashio street -...

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6 - U N I T A PA R T M E N T C O M M U N I T Y L O C AT E D I N P I C O - R O B E R T S O N

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

8528 C A S H I O S T R E E T

6 U N I T S l B U I LT I N 1 9 5 6

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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, con-dition 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 rep-resentation 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 diligence 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 represen-tations regarding the veracity, completeness, or relevance 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 esti-mates 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 limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions 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 appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Studio City in compliance with all applicable fair housing and equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not ver-ified 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 withdrawal 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

CONFIDENTIALITY & DISCLAIMER

EXCLUSIVELY LISTED BYRICH JOHNSMultifamily AdvisorKW CommercialT 818.432.1575M [email protected]

CalBRE Lic#01432215

DAVID WEINBERGERMultifamily AdvisorKW CommercialT 818.432.1583M [email protected]

CalBRE Lic#01349349

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EXECUTIVE SUMMARY

FINANCIAL SUMMARY

MARKET OVERVIEW

MARKET COMPARABLES

E X E C U T I V ES U M M A R Y

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The Offering KW Commercial is pleased to present 8528 Cashio Street, a 6-unit investment opportunity located in the Pico-Robertson (90035) submarket of Los Angeles

The property offers investors a unique and rare opportunity to acquire a true value add investment or owner-user opportunity in one of LA’s strongest and stable rental markets with historically low vacancy and long-term appreciation.

The unit composition consists of Five (5) large One Bedroom - One (1) Bathroom units and One (1) large 2 bedroom – One Bathroom unit for a total of 6 units.

The asset, built in 1959, consists of 5,013 SF located on a prominent 6,484 SF parcel on the highly visible street of Cashio Street.

The location of this building offers residents and visitors an impressive array of entertainment, lifestyle and retail amenities. Within minutes, residents can enjoy boutique shops, chic restaurants, cool meeting spots and artistically inclined venues. As well as places of worship for the areas religious segment.

With a walk score of 84, this pocket of Pico-Robertson is a walker’s paradise. Leave your car parked and take a stroll onto La Cienega Blvd to enjoy the buzz of the city with a multitude of dining, shopping and people watching options available at every turn. Below market rents makes this property perfectly positioned for an owner/user or investor due to the opportunity for significant rental upside potential.

I n V E S T M E n Th I g h l I g h T S

ThE OPPORTUnITY: 8528 Cashio Street is a character enhanced 1950’s style apartment building found in a world-renowned location adjacent to Beverlywood, Beverly Hills and Mid-City which is known for excellent rent growth and low vacancy rates.

VALUE ADD: This is a true value – add opportunity which enables the astute investor a building to create additional income and value.

OUTSTANDING LOCATION: The property is located in the Irreplaceable and highly desirable location of Pico Robertson, Adjacent to Beverlywood, Beverly Hills and Mid-City, which are pride of ownership areas.

EXCEPTIOnAl FInAnCIng / lOAn OPTIOnS: Today’s market has historically low interest rates and attractive financing options for buyers.

TRAnSIT ORIEnTED: 8528 Cashio Street is located close to major freeways and bus lines that can take you from Century City, to DTLA to the San Fernando Valley.

STROng EMPlOYMEnT: The Pico-Robertson submarket is one of the strongest employment centers in the Los Angeles metropolitan area and offers access to a diverse set of employers such as Cedars Sinai hospital and the many entertainment and legal firms located in the area.

lACK OF hOUSIng AFFORDABIlITY: There is a significant affordability gap to home ownership in the Pico-Robertson submarket. The median home price in the area is approximately $1.4M, a typical monthly mortgage payment is approximately 3 times more than the average rents at 8528 Cashio Street.

AMPlE OnSITE PARKIng: There is onsite parking for +/- 6 vehicles.

nO SEISMIC RETROFIT REQUIRED: 8528 Cashio Street is not on the list of buildings that require a seismic retrofit.

lOCATED nEAR nEW COMMERCIAl DEVElOPMEnTS: More than a few projects are sprouting up in the Pico-Robertson area. Plans for a for a six-story hotel with 112 guest rooms and 73 parking spaces on Robertson Blvd has just been filed with the city. A new development project is planned for La Cienega Boulevard, just south of LA’s border with Beverly Hills. The seven-story project would bring 90 new apartments, 124 spaces for cars and 99 spots for bikes.

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INTERIOR LIVING

SPACES

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INTERIOR LIVING

SPACES

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Property Details

Address:Assessor’s Parcel Number: Buildings: Year Built: Land Use: Zoning: Stories:

SITE DESCRIPTIONUnits: Gross Square Footage: Lot Size Square Footage:

UTILITIESElectric: Gas:

CONSTRUCTIONFoundation: Framing: Exterior: Roof: Topography:

These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Keller Williams Realty/KW Commercial or its personnel, and all interested parties must independently verify

its accuracy and completeness.

8528 Cashio Street4303-032-006

One1956

ApartmentsLAR3Two

65,0136,484

Separately Metered - LADWPSeparately Metered - LADWP

Raised FoundationWood Frame

StuccoFlatFlat

Offering Price:Current Cap:Market Cap:Price/Unit:Price/SF:Current GRM:Market GRM:

$2,495,000 1.7%4.7%

$415,833 $497.71

30.1115.66

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MA R K E T O V E R V I E W

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8528CASHIO STREET

LATHE CENTER OF

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The property is located blocks away from the core of three of the most enticing neighborhoods in Los Angeles County- Bev-erly Hills, Beverlywood, and Carthay Square. Due to its eclectic location and walkability, residents enjoy unparallaled access to a wide variety of employment, entertainment, and cultural experiences that few other neighborhoods in LosAngeles can match.

Following this uprising of trendy and eclectic residents is a diverse base of restaurants, bars, and retail shops that bring a wide range of cultural experiences to the area. Within the existing location, residents have the opportunity to walk to nearby restaurants and cafes, take the metro into the heart of Hollywood, or spend the afternoon in an adjacent neighbor-hood via short commute.

You can get there from here: Pico-Robertson is convenient to Century City, Beverly Hills, Culver City, Sawtelle, the Wilshire District and more, making it a great place to live for people who hate long commutes.

Restaurant row: Love kosher food? Chinese food? Kosher Chinese food? Good, because Pico-Robertson has all of this and more.

A Prime Pico-Robertson Location

LOCATION FUNDAMENTALSMillennials have ditched the suburbs for a more active and dynamic urban lifestyle. Many don’t own or want to own cars, so they rely on walking, biking, Metro or Uber. There is a limited supply of housing in Los Angeles, and especially in Pico-Robertson, which is causing upward pressure on rents. Research firm Axiometrics projects rental rates are to increase by 25% over the next five years.

URBAN LIVING WITH WALKABILITYAs the most densely populated area in Los Angeles, Pico-Robertson is a highly walkable submarket. Residents can travel on foot to complete their daily errands and stroll to the many restaurants, clubs, chic hotels and restaurants. Scoring 84 out of 100, the property is located in what walkscore.com considers “Very Walkable”.

CLOSE PROXIMITY TO • Beverly Hills, Beverly wood, Century City and Mid-City• Brand New Starbucks• Hollywood Pies for delicious Chicago style deep dish pizza• Vons• Glatt Mart• Carthay Center Elementary School• Cedars Sinai Medical group• Robertson Recreation Center• Roxbury Park

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The subject property is within walking distance of popular destinations such as Nick’s coffee Shop, Twin Drag-on Chinese Restaurant, Tratorilla Bella Roma, Jeff’s Gourmet, and countless other local amenities along Pico Boulevard thereby offering residents the perfect balance of urban activity and quiet neighborhood charm. Highlighted below are notable establishments within walking distance.

Retail Amenities

• Nick’s Cofee Shop

• Twin Dragon Cafe

• Tratoripicoa Bella Roma

• Jeff’s Gourmet

• Hansen’s Cakes

• Komodo Restaurant

• Jack in the box

• The Mint

• Vons

• Bloom Cafe

• Sotto Restaurant

• JOANN Fabrics

• Cicerro Pizza

• Panda Express

• KFC

• Oasis Mediterranean

• Starbucks

• Pizza Hut

WALK SCORE: 84“VERY WALKABLE”

TRANSIT SCORE: 54“GOOD TRANSIT”

WALK SCORE: 61“BIKABLE”

KOMODO NICK’S COFFEE SHOP

BELLA ROMA

HANSEN’S CAKES

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CENTRALLY LOCATED - SUPER HIGH DENSITY | RAPIDLY EXPANDING RENTAL MARKET TRUE TRANSPORTATION ORIENTED COMMUNITY - NUMEROUS SUBWAY OPTIONS | RICH IN AMENITIES - RESTAURANTS, RETAIL, ENTERTAINMENT

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F I n A n C I A lS U M M A R Y

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FINANCIAL SUMMARY 8528 Cashio StreetLos Angeles, CA 90035

Price $2,495,000Down Payment #REF!Current CAP 1.7%Market CAP 4.7%Current GRM 30.11Market GRM 15.66Cost Per SF $497.71Cost Per Unit $415,833Stabilized Value $3,000,000Expenses Per Unit ‐$6,478Expenses Per Sq Ft ($7.75)

Units 6Year Built 1956Lot Sq Ft 6,484Bldg Gross Sq Ft 5,013Parking Spaces 6Zoning LAR3

FINANCIAL INDICATORS

BUILDING DATA

New Property Taxes $29,940Utilities $2,026Property Insurance $2,256Registration Fees $324Pest Control $720Landscaping $900Repairs & Maint Estimate $2,700Total Estimated Expenses $38,865

ESTIMATED ANNUALIZED EXPENSES

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

5 1 Bedroom / 1 Bathroom $1,105 $4,419 $2,075 $10,3751 2 Bedroom / 1 Bathroom $1,243 $2,486 $2,650 $2,650

Total Rental Income $6,904.32 $13,025Plus:Laundry Estimate (Not In Use)(Estimated‐$15/unit/mo) $0.00 $250Total Monthly Income $6,904.32 $13,275Total Annual Income $82,851.84 $159,300

Scheduled Gross Income $82,851.84 $159,300Less Vacancy 2.0% ($1,657) 2.0% ($3,186)Gross Operating Income $81,195 $156,114Less Expenses 47.9% $38,865 24.4% $38,865Net Operating Income $42,329 $117,249Less Loan Payment $0 $0Cash Flow $42,329 $117,249Return on Investment 1.7% 4.7%

CURRENT MARKET‐Post RenovationEST. ANNUALIZED OPERATING DATA

MARKETPost RenovationCURRENTSOURCE OF INCOME

NotesRepairs & Maintenance: Underwritten based upon a proforma rate of $450 / unit / year.Contract Service: Underwritten based upon a proforma rate of $75/mo for landscaping and $60/mo for pest control.Utilities: Utilities based on 2016 actuals.Property Insurance: Underwritten based upon a proforma rate of 45 cents / SF.Utilities: Based on actual 2016 figures.

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RENT ROLL 8528 Cashio StreetLos Angeles, CA 90035

UNIT STATUS UNIT TYPE

1 Occupied 1 Bedroom / 1 Bathroom $1,070.00 $2,0752 Occupied 1 Bedroom / 1 Bathroom $954.39 $2,0753 Occupied 1 Bedroom / 1 Bathroom $1,065.07 $2,0754 Occupied 1 Bedroom / 1 Bathroom $916.23 $2,0755 Occupied 1 Bedroom / 1 Bathroom $1,478.08 $2,0756 Occupied 2 Bedroom / 1 Bathroom $1,420.55 $2,650

Monthly Total $6,904.32 $13,025Annual Total $82,851.84 $156,300

CURRENT MARKET Post Renovation

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MA R K E TC O M PA R A B l E S

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RENT COMPARABLES MAP

1)

2)

3)

4)

5)

6)

8684 Cashio Street

1148 South Sherbourne Drive

8635 Cashio Street


8550 Cashio Street

6106 Cashio Street

8528 Cashio Street

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RENT COMPARABLESONE BEDROOM

Property UnitsYearBuilt Owner / Manager

8528 Cashio StreetLos Angeles, CA 90035

1

2

3

4

5

6

7

6

10

4

10

14

8

5

1939

1963

1954

1958

1957

1957

1963

Rent SF Rent/SF


1148 South Sherbourne Drive Los Angeles, CA 90035


1445 South Sherbourne Drive Los Angeles, CA 90035

8550 Cashio Street Los Angeles, CA 90035

$1,024

$1,850

$1,695

$1,775

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Private Owner Owner Managed

AVERAGE:





Private OwnerOwner Managed

*(All Units Have 1 Bath)

$1,773

$1,850$1,695

HIGH: LOW:

---

-

--



$2,381

$2,595$2,100

1063

1226900

$2.22

$2.33$212

$1,449

-

-

-

$2,595

$2,100

$2,450

-

-

-

-

1226

900

-

-

-

-

-

$2.12

$2.33

-

Rent SF Rent/SF

TWO BEDROOM

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AVERAGE:

SALE COMPARABLES MAP

1)

2)

3)

4)

5)

6)

7)

918 South Bedford Street

1469 South Canfield Avenue

1417-1425 South Crescent Heights Blvd.

1417 South Holt Avenue

6081 Pickford Place

1123-1127 South Shenandoah Street


8528 Cashio Street

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SALE COMPARABLES

PROPERTY BUILT UNITS BLDG.SF PRICE CAP GRM $/UNIT $/SF CLOSED STUDIO 1BDR 2BDR

1

2

3

918 South Bedford StreetLos Angeles, CA 90035

1469 South Canfield AvenueLos Angeles, CA 90035

1956

1964

7

8

6,221

6,428

$3,000,000

$2,995,000

2.55%

2.7%

19.89

20.25

$428,571

$374,375

$482.24

$465.93

9/7/2017

PEnDIng

5(2+1)2(1+1)

1417-1425 South Crescent Heights Blvd.Los Angeles, CA 90035

3

4

1417 South Holt AvenueLos Angeles, CA 90035

1954

1955

8

7

7,948

5,364

$3,000,000

$2,500,000

-

3.5%

-

16.81

$375,000

$357,142.86

$377.45

$466.07

8/31/2017

PEnDIng

8(2+1)

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SALE COMPARABLES

PROPERTY BUILT UNITS BLDG.SF PRICE CAP GRM $/UNIT $/SF CLOSED STUDIO 1BDR 2BDR

6081 Pickford PlaceLos Angeles, CA 90035

1123-1127 South Shenandoah StreetLos Angeles, CA 90035

1929

1954

8

6

7,476

7,542

$2,875,000

$4,490,000

-

-

-

-

$359,375

$748,333

$384.56

$595.33

11/28/2017

1/11/2018

4(2+1)4(1+1)

6(0+1)

1051 South Sherbourne DriveLos Angeles, CA 90035

5

6

7

1964 6 6,476 $2,450,000 2.98% 19.95 $408,333 $378.32 10/27/2017 6(2+2)

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EXCLUSIVELY LISTEDBY

RICH JOHNSMultifamily Advisor

KW CommercialCalBRE Lic#01432215

4061 Laurel Canyon Blvd.Studio City, CA 91604

T 818.432.1575M 213.305.9026

[email protected]

DAVID WEINBERGERMultifamily AdvisorKW CommercialCalBRE Lic#013493494061 Laurel Canyon Blvd.Studio City, CA 91604 T 818.432.1583M [email protected]

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