offering memorandum - loopnet€¦ · we leverage our prominent capital market relationships with...

2715 ROCKEFELLER LANERedondo Beach, CA 90278

Offering Memorandum

1

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 O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap andshould not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or anytenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these mattersand makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all ofthe information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & 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 nameis 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, orcommercial 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.

2715 ROCKEFELLER LANERedondo Beach, CAACT ID ZAA0130562

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Rent Roll Summary

Rent Roll Detail

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET OVERVIEW 03Market Analysis

Demographic Analysis

2715 ROCKEFELLER LANE

3


4

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARYOFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Raytheon 12,950

Public Affairs 4,000

Torrance Memorial Medical Ctr 3,032

Harbor-Ucla Medical Center 3,000

Aerospace Corporation 2,587

Factory 2-U Acquisition LLC 2,500

Time Warner Cable Entps LLC 2,500

American Honda 2,375

Amsurg 2,214

Mattel Toy Company 1,900

Mattel 1,847

Arconic Fastening Systems 1,804

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2019 Estimate Pop 41,576 271,926 575,943

2010 Census Pop 40,139 261,446 553,598

2019 Estimate HH 15,634 103,767 210,276

2010 Census HH 14,919 98,706 199,806

Median HH Income $84,885 $86,163 $75,354

Per Capita Income $45,332 $49,371 $41,984

Average HH Income $120,357 $129,088 $114,600

UNIT MIX

NUMBEROF UNITS UNIT TYPE APPROX.

SQUARE FEET

3 Two Bedroom – Two Bathroom 1,211

3 Total 3,633

VITAL DATAPrice $1,400,000 CURRENT YEAR 1

Loan Amount $1,050,000 CAP Rate 4.03% 5.09%

Loan Type Seller Financing GRM 16.75 14.14

Interest Rate / Amortization 4.25% / 30 Years Net Operating Income $56,364 $71,310

Price/Unit $466,667 Net Cash Flow After Debt Service 3.35% / $11,739 7.62% / $26,685

Price/SF $385.36 Total Return 3.35% / $11,739 7.62% / $26,685

Number of Units 3

Rentable Square Feet 3,633

Year Built 1953

Lot Size 0.17 acre(s)

5


OFFERING SUMMARY

***EXTREMELY ATTRACTIVE SELLER FINANCING

3 Garages and also 3 onsite Parking Spaces

Very Walkable with a Walk Score of 73

Close Location to the South Bay Galleria and additional Shopping Centers

Unit Mix: Three 2 Bedroom 2 Bath Units

Excellent School Ratings: Elementary-8, Middle-8, High School-9

INVESTMENT HIGHLIGHTS

4/16/2020: $180,000 price reduction as well as attractive seller financing option.

Marcus & Millichap is pleased to 2715 Rockefeller Lane, a 3-unit investment property in Redondo Beach, California. The property is located between Inglewood Avenue andRuxton Lane just a several blocks away from the South Bay Galleria and shopping center. The South Bay Galleria is undertaking a massive revamp and within the next threeyears plan to build 300 multi-family units, 100 room hotel, and create a more entertainment based mall experience. This will have a huge positive impact on the values in thesurrounding areas.

2715 Rockefeller Lane consists of Three 2 Bedroom 2 Bath units. All the units are separately metered for gas and electricity. The property also offers 3 Detached Garagesand 3 onsite Parking Spaces. Due to its location and vintage of building, this property does not fall under Los Angeles Rent Control.

This offering presents a great opportunity for an investor to acquire an asset with steady cash flow in a strong rental market and capture potential upside in rents.

INVESTMENT OVERVIEW

6


#

OFFERING SUMMARYPROPERTY OVERVIEW

Marcus & Millichap is pleased to 2715 Rockefeller Lane, a 3-unit investment property in Redondo Beach,California. The property is located between Inglewood Avenue and Ruxton Lane just a several blocks away fromthe South Bay Galleria and shopping center. The South Bay Galleria is undertaking a massive revamp and withinthe next three years plan to build 300 multi-family units, 100 room hotel, and create a more entertainment basedmall experience. This will have a huge positive impact on the values in the surrounding areas.

2715 Rockefeller Lane consists of Three 2 Bedroom 2 Bath units. All the units are separately metered for gas andelectricity. The property also offers 3 Detached Garages and 3 onsite Parking Spaces. Due to its location andvintage of building, this property does not fall under Los Angeles Rent Control.

This offering presents a great opportunity for an investor to acquire an asset with steady cash flow in a strongrental market and capture potential upside in rents.

77


PROPERTY SUMMARYOFFERING SUMMARY

PROPOSED FINANCINGFirst Trust DeedLoan Amount $1,050,000Loan Type Proposed NewInterest Rate 4.25%Amortization 30 YearsLoan Term 4 YearsLoan to Value 75%Debt Coverage Ratio 1.26

THE OFFERINGPrice $1,400,000Property Address 2715 Rockefeller Lane, Redondo Beach, CA

SITE DESCRIPTIONNumber of Units 3Year Built/Renovated 1953Rentable Square Feet 3,633Lot Size 0.17 acre(s)

8

REGIONAL MAP


9

LOCAL MAP


10

AERIAL PHOTO


11

Marcus & Millichap closes

more transactions than any other

brokerage firm.

12


12

PROPERTY PHOTO


13

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

14

FINANCIAL ANALYSIS


15

RENT ROLL DETAIL

FINANCIAL ANALYSIS


OPERATING STATEMENT

16

FINANCIAL ANALYSIS


NOTES

17

FINANCIAL ANALYSIS


PRICING DETAIL

18

MARCUS & MILLICHAP ADVANTAGE

MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.

Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues for the benefit of our clients.

Optimum financing solutions to enhance value

Enhanced control through investor qualification support

Enhanced control through MMCC’s ability to qualify investor finance contingencies

Enhanced control through MMCC’s ability to monitor investor/due diligence and underwriting to ensure timely, predictable closings

Enhanced control through quickly identifying potential debt/equity sources, processing, and closing buyer’s finance alternatives

WHY MMCC?

National platform operating

within the firm’s brokerage offices

$ 7.18 billion total national

volume in 2019

Access to more capital sources than any other

firm in the industry

Closed 1,944debt and equity

financings in 2019

19



20

MARKET

OVERVIEW


21

LOS ANGELES METRO AREA

High Cost of Homeownership Sustains Rental Demand; Investors Target Locales With Higher Return Thresholds

Tight conditions preserved amid wave of supply additions. In each of the previous three years rentaldemand in Los Angeles outpaced elevated levels of construction activity, compressing vacancy to a cycle-lowlevel entering 2020. Limited unit availability occurs at an opportune time, as the county’s rental inventory willswell by an additional 14,000 units this year, the third-largest total among major U.S. metros. While core LosAngeles continues to record the largest influx of new apartments, deliveries are more evenly distributedbetween Downtown Los Angeles, Mid-Wilshire and Hollywood than in previous years. Elsewhere, the SanFernando Valley will record a large increase of new units, welcoming more than 4,000 rentals, 40 percent ofwhich are in Woodland Hills. Throughout the county, projects in lease-up will benefit from steep home pricesand income growth, but concessions usage will increase as developers seek to achieve stabilization in undera year. With solid demand drivers in place, the overall impact of cycle-high delivery volume will be moderate,with metro vacancy rising to 4 percent.

New legislation forces investors to adjust expectations. Robust renter demand for lower-cost apartmentswill fuel buyer competition for properties near major freeways and employment hubs this year. While theimplementation of statewide rent control could alter returns on Class C investments following a span ofsizable rental rate gains in this tranche, tight conditions should allow for steady, yet more subdued, increasesmoving forward. In-county investors and regional 1031-exchange buyers should be most active, eyeingKoreatown, South Bay and the San Gabriel Valley, where pricing below $200,000 per unit and 5 percent-pluscap rates can be found. Hollywood, Mid-Wilshire and the San Fernando Valley represent additional targets forthese buyers; however, yields beyond the mid-4 percent band will be harder to obtain as asset values inthese locales rise.

* Estimate; ** ForecastSources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.


22

LOS ANGELES METRO AREA

2020 Market Forecast

After expanding payrolls by 50,000 positions last year, metro employers bolster staffs by 40,600 workers in 2020.

Delivery volume rises by more than 5,200 units on a year-over-year basis, increasing Los Angeles’ rental stock by 1.3 percent.

Supply additions outpace rental demand for the first time in four years, elevating metro vacancy to 4.0 percent. Still, more than 6,800 units will be absorbed.

Increased concessions usage and rent control will slightly slow the mean rental growth this year, with the average effective rent reaching $2,380 per month.

Home to a cohort of higher-earning residents who are choosing to not purchase a home, Silicon Beach remains a target for buyers willing to deploy more than $500,000 per unit for Class C assets.

* Estimate; ** ForecastSources: CoStar Group, Inc.; RealPage, Inc.; Real Capital Analytics

Employmentup 0.9%

Construction14,100 units

Vacancyup 60 bps

Rentup 3.0%

Investment

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2019 Experian

Created on April 2020

POPULATION 1 Miles 3 Miles 5 Miles 2024 Projection

Total Population 42,357 277,940 588,602 2019 Estimate

Total Population 41,576 271,926 575,943 2010 Census

Total Population 40,139 261,446 553,598 2000 Census

Total Population 38,074 252,170 536,687 Daytime Population

2019 Estimate 32,594 308,372 636,943HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2024 Projection

Total Households 15,943 106,017 215,109 2019 Estimate

Total Households 15,634 103,767 210,276Average (Mean) Household Size 2.65 2.61 2.71

2010 CensusTotal Households 14,919 98,706 199,806

2000 CensusTotal Households 14,369 97,902 197,450

Growth 2015-2020 1.98% 2.17% 2.30%HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units

2024 Projection 15,943 106,017 215,1092019 Estimate 15,949 106,215 215,540Owner Occupied 7,529 51,471 98,345Renter Occupied 8,105 52,296 111,931Vacant 315 2,448 5,264

Persons In Units2019 Estimate Total Occupied Units 15,634 103,767 210,2761 Person Units 25.47% 27.11% 26.36%2 Person Units 29.92% 29.88% 28.65%3 Person Units 18.53% 17.25% 17.06%4 Person Units 15.40% 14.97% 14.89%5 Person Units 5.92% 6.31% 6.97%6+ Person Units 4.75% 4.48% 6.07%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2019 Estimate

$200,000 or More 12.09% 14.94% 11.96%$150,000 - $199,000 10.82% 10.31% 8.57%$100,000 - $149,000 18.31% 17.81% 16.66%$75,000 - $99,999 14.96% 13.14% 13.02%$50,000 - $74,999 15.53% 15.09% 16.09%$35,000 - $49,999 9.20% 9.29% 10.35%$25,000 - $34,999 7.23% 6.37% 7.53%$15,000 - $24,999 5.73% 6.26% 7.64%Under $15,000 6.13% 6.80% 8.17%

Average Household Income $120,357 $129,088 $114,600Median Household Income $84,885 $86,163 $75,354Per Capita Income $45,332 $49,371 $41,984POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2019 Estimate Total Population 41,576 271,926 575,943Under 20 23.91% 23.24% 23.92%20 to 34 Years 21.14% 20.56% 20.95%35 to 39 Years 8.37% 7.38% 7.15%40 to 49 Years 15.79% 15.17% 14.65%50 to 64 Years 19.77% 20.36% 19.82%Age 65+ 11.00% 13.30% 13.53%Median Age 37.94 39.20 38.57

Population 25+ by Education Level2019 Estimate Population Age 25+ 29,328 193,734 404,500Elementary (0-8) 4.51% 3.91% 5.93%Some High School (9-11) 5.07% 5.04% 6.56%High School Graduate (12) 17.50% 17.16% 19.13%Some College (13-15) 21.06% 19.97% 20.36%Associate Degree Only 8.00% 7.14% 7.20%Bachelors Degree Only 27.59% 29.03% 25.29%Graduate Degree 14.61% 16.22% 13.40%

Population by Gender2019 Estimate Total Population 41,576 271,926 575,943Male Population 49.82% 49.56% 49.27%Female Population 50.18% 50.44% 50.73%

23

IncomeIn 2019, the median household income for your selected geography is$84,885, compare this to the US average which is currently $60,811.The median household income for your area has changed by 51.60%since 2000. It is estimated that the median household income in yourarea will be $97,305 five years from now, which represents a changeof 14.63% from the current year.

The current year per capita income in your area is $45,332, comparethis to the US average, which is $33,623. The current year averagehousehold income in your area is $120,357, compare this to the USaverage which is $87,636.

PopulationIn 2019, the population in your selected geography is 41,576. Thepopulation has changed by 9.20% since 2000. It is estimated that thepopulation in your area will be 42,357.00 five years from now, whichrepresents a change of 1.88% from the current year. The currentpopulation is 49.82% male and 50.18% female. The median age of thepopulation in your area is 37.94, compare this to the US averagewhich is 38.08. The population density in your area is 13,232.72people per square mile.

HouseholdsThere are currently 15,634 households in your selected geography.The number of households has changed by 8.80% since 2000. It isestimated that the number of households in your area will be 15,943five years from now, which represents a change of 1.98% from thecurrent year. The average household size in your area is 2.65persons.

EmploymentIn 2019, there are 9,239 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that70.23% of employees are employed in white-collar occupations in thisgeography, and 29.69% are employed in blue-collar occupations. In2019, unemployment in this area is 3.56%. In 2000, the average timetraveled to work was 31.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:58.31% White, 4.46% Black, 0.65% Native American and 16.50%Asian/Pacific Islander. Compare these to US averages which are:70.07% White, 12.87% Black, 0.19% Native American and 5.66%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 31.99% of the current yearpopulation in your selected area. Compare this to the US average of18.17%.

PROPERTY NAME

MARKETING TEAM


HousingThe median housing value in your area was $680,586 in 2019,compare this to the US average of $212,058. In 2000, there were6,692 owner occupied housing units in your area and there were 7,677renter occupied housing units in your area. The median rent at thetime was $821.

Source: © 2019 Experian

DEMOGRAPHICS

24

8


DEMOGRAPHICS

25

offering memorandum - loopnet€¦ · we leverage our prominent capital market relationships with...

Documents