koreatown multifamily units - loopnet · 2019-06-18 · countertop, stainless steel appliances,...
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213 S Alexandria Ave | 213 S Alexandria ave, Los Angelesa, CA, 90004
KOREATOWN MULTIFAMILY UNITS
OFFER
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213 S Alexandria AveCONTENTS
Exclusively Marketed by:
Hank BahramiBroker949-400-4019
We obtained the following 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 otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.
01 Executive Summary Investment Summary 5 Unit Mix Summary 6 Location Summary 7
02 Property Description Property Features 9 Aerial Map 10
11 Common Amenities 12 Unit Amenities 13
03 Rent Roll Rent Roll Details 15
04 Financial Analysis Income & Expense Analysis 17 Multiyear Cash Flow Assumptions 18 Cash Flow Analysis 19 Disposition Sensitivity Analysis 21
05 Demographics Demographics 23 Demographic Charts 24
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Alta Mira Realty Commercialand it should not be made available to any other person or entity without the written consent of Alta Mira Realty Commercial. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Alta Mira RealtyCommercial. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level ofinterest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Alta Mira Realty Commercial has not made any investigation, and makes no warranty orrepresentation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvementsthereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, Alta Mira Realty Commercial has not verified, and will not verify, any of theinformation contained herein, nor has Alta Mira Realty Commercial conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding theaccuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsiblefor their costs and expenses of investigating the subject property.
213 S Alexandria Ave Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER:
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT ALTA MIRA REALTY COMMERCIAL FOR MORE DETAILS.Copyright © 2019 CREOP, LLC. All Rights Reserved.
213 S Alexandria A
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Executive Summary
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Investment Summary
Unit Mix Summary
Location Summary
213 S Alexandria Ave Investment Summary | 05
OFFERING SUMMARYADDRESS 213 S Alexandria ave
Los Angelesa CA 90004COUNTY Los AngelesBUILDING SF 7,305LAND SF 7,263NUMBER OF UNITS 10YEAR BUILT 1958YEAR RENOVATED 2017-2018OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARYOFFERING PRICE $2,950,000PRICE PSF $403.83PRICE PER UNIT $295,000OCCUPANCY 100.00 %NOI (CURRENT) $150,638NOI (Pro Forma) $196,970CAP RATE (CURRENT) 5.11 %CAP RATE (Pro Forma) 6.68 %GRM (CURRENT) 14.57GRM (Pro Forma) 11.86
PROPOSED FINANCINGLOAN TYPE Interest OnlyDOWN PAYMENT $1,000,050LOAN AMOUNT $1,949,950INTEREST RATE 3.75 %ANNUAL DEBT SERVICE $73,123LOAN TO VALUE 66 %
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2017 Population 122,975 640,881 1,215,2872017 Median HH Income $38,123 $40,269 $43,3632017 Average HH Income $52,735 $65,921 $72,061
The 10 units Alexandria Apartments multi-family asset, recently 6 out of10 has been renovated magnificently, new kitchen cabinet, quartzcountertop, stainless steel appliances, full-size gas stove, microwave,full-size french fridge, recess lights, new window, synthetic hardwoodfloor located in bustling Koreatown district in a quiet street. This propertyhas 35% upside potential. property's unit mix consists of (1)Studio ; (8)one bed/one bath; (1) 2 bed/1 bath units. The SOFT STORY RETROFIThas been done. The property is separately metered for gas and electricutilities, keeping landlords expenses low. There is a laundry room on siteand there are 5 tandem parking spaces for a total of 10 cars. ZonedLAR4
213 S Alexandria Ave Unit Mix Summary | 06
Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly Income Market Rent Market Rent
PSFMarket Income
1 bd / 1 ba 8 750 $1,573 $2.10 $12,584 $2,000 $2.67 $16,0002 bd / 1 ba 1 875 $2,500 $2.86 $2,500 $2,500 $2.86 $2,500
Studio / 1 ba 1 550 $1,700 $3.09 $1,700 $1,700 $3.09 $1,700
Totals/Averages 10 743 $1,678 $2.27 $16,784 $2,020 $2.73 $20,200
213 S Alexandria Ave Location Summary | 07
The 10 units Alexandria Apartments multi-family asset,recently 7 out of 10 has been renovated magnificently, newkitchen cabinet, quartz countertop, stainless steelappliances, full-size gas stove, microwave, full-size frenchfridge, recess lights, new window, synthetic hardwood floorlocated in bustling Koreatown district in a quiet street. Thisproperty has 25%-35% upside potential. property's unit mixconsists of (1)Studio ; (8) one bed/one bath; (1) 2 bed/1bath units. The SOFT STORY RETROFIT has been done.The property is separately metered for gas and electricutilities, keeping landlords expenses low. There is a laundryroom on site and there are 5 tandem parking spaces for atotal of 10 cars. Zoned LAR4
Regional Map
Locator Map
213 S Alexandria A
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Property Description
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Property Features
Aerial Map
Parcel Map
Additional Maps
Amenities
Property Images
213 S Alexandria Ave Property Features | 09
PROPERTY FEATURESNUMBER OF UNITS 10BUILDING SF 7,305LAND SF 7,263YEAR BUILT 1958YEAR RENOVATED 2017-2018ZONING TYPE LAR4NUMBER OF STORIES 2NUMBER OF BUILDINGS 1NUMBER OF PARKING SPACES 10
213 S Alexandria Ave Aerial Map | 10
213 S Alexandria Ave | 11
213 S Alexandria A
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213 S Alexandria A
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213 S Alexandria A
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Rent Roll
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Rent Roll Details
213 S Alexandria Ave Rent Roll Details | 15
Unit Square Feet Unit Mix Monthly Rent PSF Market Rent Notes1 850 1 bd / 1 ba $2,200 $2.59 $2,200 under remodeling2 750 1 bd / 1 ba $1,900 $2.53 $2,0003 750 1 bd / 1 ba $859 $1.15 $2,0004 750 1 bd / 1 ba $2,000 $2.67 $2,0005 850 2 bd / 1 ba $2,500 $2.94 $2,5006 750 1 bd / 1 ba $915 $1.22 $2,0007 550 1 bd / 1 ba $1,700 $3.09 $1,7008 750 1 bd / 1 ba $2,000 $2.67 $2,0009 750 1 bd / 1 ba $915 $1.22 $2,000
10 750 1 bd / 1 ba $1,800 $2.40 $2,000Totals/Averages $16,789 $2.25 $20,400
Notes: unit 1 under remodeling
213 S Alexandria A
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Financial Analysis
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Income & Expense
Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
Disposition Sensitivity Analysis
213 S Alexandria Ave Income & Expense Analysis | 17
INCOME CURRENT PRO FORMA
Gross Potential Rent $201,468 $244,800
Other Income $1,000 $4,000
Effective Gross Income $202,468 $248,800
Less: Expenses $51,830 $51,830
Net Operating Income $150,638 $196,970
Annual Debt Service $73,123 $73,123
Debt Coverage Ratio 2.06 2.69
Cash Flow After Debt Service $77,515 $123,847
EXPENSES CURRENT PRO FORMA
Real Estate Taxes $3,540 $35,400 $3,540 $35,400
Insurance $324 $3,240 $324 $3,240
Management Fee $384 $3,840 $384 $3,840
Repairs & Maintenance $325 $3,250 $325 $3,250
Water / Sewer/Electricity $480 $4,800 $480 $4,800
Utilities/gas $130 $1,300 $130 $1,300
Total Operating Expense $5,183 $51,830 $5,183 $51,830
Expense / SF $7.09 $7.09
% of EGI 25.60 % 20.83 %
Per Unit Per Unit
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
213 S Alexandria Ave Multiyear Cash Flow Assumptions | 18
GLOBALSale Price $2,950,000Analysis Period 5 year(s)Commencement Date Nov. 1, 2018Consumer Price Index (growth rate) 2.50 %Exit CAP Rate 4.50 %
INCOMEGross Potential Rent 3.00 %Parking 3.00 %
PROPOSED FINANCINGLoan Type Interest OnlyDown Payment $1,000,050Loan Amount $1,949,950Interest Rate 3.75 %Annual Debt Service $73,123Loan to Value 66 %
213 S Alexandria Ave Cash Flow Analysis | 19
CASH FLOWCalendar Year CURRENT Year 2 Year 3 Year 4 Year 5Gross Potential RevenueGross Rental Income $201,468 $244,800 $252,144 $259,708 $267,500Other Income $1,000 $4,000 $4,000 $4,000 $4,000Gross Potential Income $202,468 $248,800 $256,144 $263,708 $271,500Effective Gross Income $202,468 $248,800 $256,144 $263,708 $271,500Operating ExpensesReal Estate Taxes $35,400 $35,400 $35,400 $35,400 $35,400Insurance $3,240 $3,240 $3,240 $3,240 $3,240Management Fee $3,840 $3,840 $3,840 $3,840 $3,840Repairs & Maintenance $3,250 $3,250 $3,250 $3,250 $3,250Water / Sewer/Electricity $4,800 $4,800 $4,800 $4,800 $4,800Utilities/gas $1,300 $1,300 $1,300 $1,300 $1,300Total Operating Expense $51,830 $51,830 $51,830 $51,830 $51,830Net Operating Income $150,638 $196,970 $204,314 $211,878 $219,670Annual Debt Service $73,123 $73,123 $73,123 $73,123 $73,123Cash Flow $77,515 $123,847 $131,191 $138,755 $146,546
Effective Gross Income vs Operating Expenses Cash Flow
213 S Alexandria Ave Cash Flow Analysis | 20
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5Financial MetricsCash on Cash Return b/t 7.75 % 12.38 % 13.12 % 13.87 % 14.65 %CAP Rate 5.11 % 6.68 % 6.93 % 7.18 % 7.45 %Debt Coverage Ratio 2.06 2.69 2.79 2.90 3.00Operating Expense Ratio 25.59 % 20.83 % 20.23 % 19.65 % 19.09 %Gross Multiplier (GRM) 14.57 11.86 11.52 11.19 10.87Loan to Value 66.15 % 66.13 % 66.14 % 66.08 % 66.13 %Breakeven Ratio 61.71 % 50.22 % 48.78 % 47.38 % 46.02 %Price / SF $403.83 $403.83 $403.83 $403.83 $403.83Price / Unit $295,000 $295,000 $295,000 $295,000 $295,000Expense / SF $7.09 $7.09 $7.09 $7.09 $7.09Income / SF $27.71 $34.05 $35.06 $36.09 $37.16
213 S Alexandria Ave Disposition Sensitivity Analysis | 21
5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED
SALES PRICESALES PRICE/UNIT SALES PRICE PSF PROCEEDS AFTER
LOAN PAYOFFIRR
3.50% $6,276,273 $627,627 $859 $4,326,323 41.05%3.75% $5,857,855 $585,786 $802 $3,907,905 38.60%4.00% $5,491,739 $549,174 $752 $3,541,789 36.29%4.25% $5,168,696 $516,870 $708 $3,218,746 34.10%4.50% $4,881,546 $488,155 $668 $2,931,596 32.02%4.75% $4,624,623 $462,462 $633 $2,674,673 30.03%5.00% $4,393,391 $439,339 $601 $2,443,441 28.12%5.25% $4,184,182 $418,418 $573 $2,234,232 26.28%5.50% $3,993,992 $399,399 $547 $2,044,042 24.51%
213 S Alexandria A
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Demographics
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Demographic Details
Demographic Charts
213 S Alexandria Ave Demographics | 23
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 124,309 628,202 1,151,249
2010 Population 114,728 601,195 1,138,360
2017 Population 122,975 640,881 1,215,287
2022 Population 129,813 675,148 1,272,164
2017 African American 5,128 38,448 132,504
2017 American Indian 940 5,627 9,836
2017 Asian 47,133 140,898 203,152
2017 Hispanic 61,216 337,427 602,421
2017 White 32,194 248,270 496,079
2017 Other Race 32,107 175,594 313,959
2017 Multiracial 5,374 31,318 58,406
2017-2022: Population: Growth Rate 5.45 % 5.25 % 4.60 %
2017 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 8,124 45,837 86,343
$15,000-$24,999 7,575 35,384 60,336
$25,000-$34,999 6,106 28,266 49,176
$35,000-$49,999 7,405 32,684 58,538
$50,000-$74,999 8,475 38,913 71,537
$75,000-$99,999 4,315 20,712 40,863
$100,000-$149,999 3,557 22,713 47,702
$150,000-$199,999 1,261 9,692 21,403
$200,000 or greater 810 12,612 29,543
Median HH Income $38,123 $40,269 $43,363
Average HH Income $52,735 $65,921 $72,061
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 46,654 235,235 442,679
2010 Total Households 44,652 230,903 435,151
2017 Total Households 47,630 246,814 465,447
2022 Total Households 50,193 260,996 488,741
2017 Average Household Size 2.56 2.54 2.52
2000 Owner Occupied Housing 3,202 31,816 82,837
2000 Renter Occupied Housing 41,764 192,095 336,439
2017 Owner Occupied Housing 3,311 32,899 84,940
2017 Renter Occupied Housing 44,319 213,915 380,507
2017 Vacant Housing 3,383 21,091 37,353
2017 Total Housing 51,013 267,905 502,800
2022 Owner Occupied Housing 3,840 37,014 95,400
2022 Renter Occupied Housing 46,353 223,982 393,342
2022 Vacant Housing 3,101 21,384 36,828
2022 Total Housing 53,294 282,380 525,569
2017-2022: Households: Growth Rate 5.25 % 5.60 % 4.90 %
Source: esri
213 S Alexandria Ave Demographic Charts | 24
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Population by Race
213 S Alexandria Ave Demographic Charts | 25
2017 Household Occupancy - 1 Mile Radius
Average Income Median Income
2017 Household Income Average and Median
213 S Alexandria Ave
Exclusively Marketed by:
Hank BahramiBroker949-400-4019
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