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PRIME WESTLAKE DEVELOPMENT

TOC BONUS opportunityJAMES CAPITAL ADVISORS

MARKETING PACKAGE

TABLE OF

Contents

MEET YOUR ADVISORS

CONTENTS PAGE

The Offering

Property Details

Highlights

Plan View / Plat Map

Financial Analysis

Location Overview

04

05

06

07

08

10

315-319 N. Alvarado, Los Angeles, CA 90026

TOM JONSSONDirector(424) 325-2621

JOHNNY CLEATORSenior Associate(424) 325-2609

will jamesDirector(424) 325-2610

315-319 N. Alvarado, Los Angeles, CA 9002604 05

315-319 N. ALVARADO315-319 N. ALVARADO

The OFFERING DETAILS

Street Address

City

State

Zip Code

APN

Zoning

TOC

315-319 N. Alvarado

Los Angeles

CA

90026

5157-017-001 & 5157-017-016

R4-1

Tier 2

Number of Units

Unit Mix

Rentable SF

Existing Buildings

Stories

Parking

Year Built

3

(2) 2 Bed / 1 Bath + Retail

2,382 SF

3

1

None

1897

Lot Size

Lot Dimensions

Building Line

Council District

Historic Review

Specific Plan

Opportunity Zone

8,456 SF

40.23 x 136.9; 25 x 125.36

None

CD 13 - Mitch O’Farrell

No

None

No

THE OFFERING

Premier Development Opportunity in Thriving Westlake & Echo ParkThe current opportunity is to develop approximately 36 apartment units under Los Angeles’s new Transit Oriented Communities (TOC). This measure requires the City Planning to create incentives for all housing developments located within a one-half mile radius of a major transit stop. Due to the proximity to the Temple & Alvarado St Metro stop, this development qualifies for TOC Tier 2. Density Bonus incentives include an additional 11 feet in height and 45% increase in FAR, 60% increase in the number of buildable units, a decrease in setbacks and open space requirements, along with a reduction in parking now only requiring 0.5 spaces per unit; no more than 1 required per unit. This 8,456 square foot lot will come with 2 vacant units.

This offering is located in a thriving, development-heavy neighborhood, presenting an opportunity for developers looking to build a new multifamily project.

PRICE

RENTABLE SF

LOT SIZE

$1,499,000

2,382 SF

8,456 SF

TOC

Zoning

APN

Current Use

Tier 2

R4-1

5157-017-001 & 5157-017-016

Single Family Residence / Retail

315-319 N. ALVARADO

Los Angeles, CA 90026



PLAN VIEW / Plat MapHIGHLIGHTS

TOC Tier 2 Building Incentives• 60% Unit Density Bonus• 45% Increase in FAR• Height Bonus: 11 Feet or One Story• 30% Reduction in Set Backs• 0.5 Parking Spaces Per Bedroom; No More Than

1 Required Space Per Unit

Potentially Delievered Vacant• Contact Agent for Details



INCOME AND EXPENSE

This information has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless James Capital Advisors, Inc. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

PRICING ANALYSIS

Price

Price per Unit

Price per Square Foot

CAP Rate

GRM

Gross Income

Expenses

NOI

ANNUAL

INCOME

Base Rental Income

Gross Potential Income

Vacancy Allowance

Effective Gross Income

Operating Expenses

Net Operating Income

CURRENT

$76,800

$76,800

-$2,304

$74,496

$30,387

$44,109

(3.00%)

(40.8%)

(3.00%)

(39.7%)

PRO FO RMA

$79,200

$79,200

-$2,376

$76,824

-$30,480

$46,344

ANNUAL

EXPENSE

Taxes (1.25%)

Insurance ($.65/sq. ft.)

Water Bill (Estimated)

Repairs & Maintenance (6% of EGI)

Management Fee (4% of EGI)

Gardener (Estimated)

Pest Control (Estimated)

Reserves ($200/Unit)

Operating Expenses

CURRENT

$18,738

$1,200

$1,500

$4,470

$2,980

$600

$300

$600

$30,387

PRO FORMA

$18,738

$1,200

$1,500

$4,470

$3,073

$600

$300

$600

$30,480

UNIT #

315 (Vacant)

317 (Vacant)

319 (MTM Lease)

TOTAL

UNIT TYPE

2 Bed / 1 Bath

2 Bed / 1 Bath

Retail

MONTHLY RENT

$2,300

$2,300

$1,800

$6,400

ANNUAL RENT

$27,600

$27,600

$21,600

$76,800

PRO FORMA

MONTHLY RENT

$2,300

$2,300

$2,000

$6,600

PRO FORMA

ANNUAL RENT

$27,600

$27,600

$24,000

$79,200

$1,499,000$1,499,000

$499,667

$629.30

CURRENT

2.94%

19.52

$74,496

-$30,387

$44,109

PRO FORMA

3.09%

18.93

$76,824

-$30,480

$46,344



Orientation MAP

NEIGHBORHOOD SCALECITY SCALE

DEMOGRAPHICS

Population

2024 Projection

2019 Estimate

2010 Census

Growth ‘18 - ‘23

Growth ‘10 - ‘18

Households

2024 Projection

2019 Estimate

2010 Census

Growth ‘18 - ‘23

Growth ‘10 - ‘18

Average Income

Median Income

3-Mile

594,300

582,328

536,483

2.06%

8.55%

3-Mile

224,958

219,933

200,137

2.28%

9.89%

$62,891

$39,408

1-Mile

92,720

91,896

90,399

0.90%

1.66%

1-Mile

31,419

31,229

31,232

0.61%

-0.01%

$57,014

$38,423

5-Mile

1,271,933

1,249,902

1,171,439

1.76%

6.70%

5-Mile

448,176

439,691

408,457

1.93%

7.65%

$65,562

$41,640



WestLake

WestlakeUndergoing revitalization, Westlake is a densely populated area centered on the historic MacArthur Park. It sits just to the west of Koreatown and south of the neighborhoods of Silverlake and Echo Park. Westlake and its desirable location due to the proximity to Downtown is spurring notable developments and investors’ interest. High-end development is increasing in the surrounding area where the renter pool is still mostly low-income, but the rising tide in adjacent submarkets is beginning to lift boats in Westlake as well.

According to CoStar, a new annual sale volume record has been established here in 2019, with about $200 million in deals recorded over the first three quarters of the year. Heightened investor interest is driving rapid price appreciation, and the average unit price has more than doubled over the past decade. Investors are betting that the wave of redevelopment cresting in surrounding submarkets will continue to push into Westlake. Median pricing accelerated dramatically this cycle, with average per-unit pricing of $220,000 almost triple what it was in 2010. This is a relatively liquid submarket, with 4-8% of inventory changing hands each year since 2011.

AERIAL



SUBMARKETs

Downtown Los AngelesDowntown Los Angeles (DTLA) is the central business district of Los Angeles, California, as well as a widely diverse residential neighborhood of some 58,000 people. Downtown, comprising diverse smaller areas such as Chinatown, Little Tokyo and the Arts District, offers renowned art museums, cutting-edge restaurants & hip bars. It is home of the Staples center where the Lakers, the Clippers and the Kings play every season. It is also the home of the Los Angeles Convention Center where special events take place quarterly. DTLA will also have the opportunity to be home to the 2028 Olympics.

KOREATOWNLocated west of Downtown L.A and south of Hollywood, Koreatown is one of the most diverse neighborhoods in Los Angeles. Encompassing roughly 3 square miles, the area was once the epi-center of Golden Age Hollywood, home to the Ambassador Hotel, the Coconut Grove and the Brown Derby. Today, Korean and Latino populations contribute to Koreatown’s rich cultur-al diversity. K-town is also known for having one of the largest concentration of nightclubs, 24-hour businesses and restaurants in the country.

echo parkEcho Park is an Eastside neighborhood with vibrant street murals and a lively nightlife scene. Indie music venues, trendy bars and taco trucks can be found along Sunset Boulevard, along with coffee shops, vegan eats and quirky boutiques. Echo Park is a densely populated neighborhood of over 43,000 residents in Central Los Angeles. It con-tains one high school and eight other schools, and has been home to many notable people. The neighborhood is centered on the lake of the same name. Echo Park Lake offers paddle boating among lotus flowers and a quick drive to Dodger Stadium and long hiking trails at Elysian Park.

AERIAL



TRANSIT

Metro Stops1. North Hollywood2. Universal City / Studio City3. Hollywood / Highland4. Hollywood / Vine5. Hollywood / Western6. Vermont / Sunset7. Vermont / Santa Monica8. Vermont / Beverly9. Wilshire / Western10. Wilshire / Normandie11. Wilshire / Vermont12. Westlake / MacArthur Park13. 7th St. / Metro Center14. Pershing Square15. Civic Center / Grand Park16. Union Station

Points of InterestA. Staples CenterB. Los Angeles Convention CenterC. Dodger StadiumD. TCL Chinese TheatreE. Universal Studios / City WalkF. Hollywood Bowl

POINTS OF INTEREST

A

D

B

E

C

F

Staples CenterStaples Center is a multi-purpose arena in Downtown, Los Angeles. It is home to the Los Angeles Lakers & Clippers.

TCL Chinese TheaterTCL Chinese Theatre is a movie palace on the historic Hollywood Walk of Fame. It was originally opened in 1927.

LOs Angeles Convention CenterThe L.A Convention center hosts multiple annual conventions and has often been used as a filming location in TV shows.

Universal Studios / City WalkUniversal Studios Hollywood is a film studio and theme park in the San Fernando Valley area of Los Angeles.

Dodger StadiumDodger stadium is home to Major League Baseball’s Los Angeles Dodgers. It can hold up to 56,000 people at one time.

Hollywood BowlThis amphitheater in Los Angeles, CA was rated one of the 10 best live music venues in America in 2018.



HOTSPOTS

G. Parks BBQGo to Park’s BBQ for the best Korean barbecue in the heart of K-Town, a bold, but true, claim for the constantly changing neighborhood with more smoke-filled barbecue spots per square mile than some major cities.

D. Gaba GalleryAt the Gabba Gallery displays disciplines—photography, street, design, collage and fine art—this contemporary gallery is a cultural haven that maintains eclectic cool while appealing to many.

J. Gaba GalleryThe Gabba Gallery displays disciplines—photography, street, design, collage and fine art.his contemporary gallery is a cultural haven that maintains eclectic cool while appealing to many.

H. The Teragram BallroomThe only live-music venue with multiple bars presenting big-name rock & indie bands. The Teragram has three bars, an adjacent restaurant, a backstage area, a green room, a trio of dressing rooms and a loading dock for musicians.

E. HiFi KitchenHiFi Kitchen is a casual kitchen café in L.A.’s Historic Filipinotown. They specialize in traditional & vegan Filipino fare, using a modern approach to share the comfort of their family recipes.This kitchen has a 90’s throwback theme.

I. MacArthur ParkMacArthur Park is a popular park based inside Westlake, originally dating back to the late nineteenth century, this park has been mentioned in a plethora of entertainnment films, books & t.v.

F. GeneverThis women-owned and -run cocktail bar is intimate, sleek and focused on gin & other dark spirirts. Rare and name-brand bottles alike make their way into one of L.A.’s best seasonal menu for amazing and delicious cocktails.

HOTSPOTS

A. Echo Park LakeEastside’s historic Echo Park Lake has become a family-friendly destination worthy of its bold backdrop: the Downtown skyline amid the lotus flower blooms and fountains.

D. FIGat7thFIGat7th is an open-air shopping mall located in the Financial District of Downtown Los Angeles. It is nestled between two office skyscrapers, 777 Tower and Ernest & Young Plaza. Some of its current retailers include Target, Starbucks Coffee & H&M.

B. Walt Disney Concert HallThis concert hall, opened on October 24th, 2003, seats 2,265 people and serves, among other purposes, as the home of the Los Angeles Philharmonic Orchestra and the Los Angeles Master Chorale.

C. The Standard, DTLAThe Standard, Downtown LA is Mid-Century California architecture par excellence. The 207-room hotel features massive guest rooms, a rooftop pool and a bar with stunning panoramic views of LA.



DevelopmentsDevelopments

A. The Alexan Bahay ProjectAlexan Bahay will be a luxury apartment complex in downtown L.A.’s historic Echo Park neighborhood. When completed, it will have a total of 201 units that will feature serene studios, one & two-bedrooms surrounded by luxe amenities in a welcoming environment. It is set to open late 2019 and is less than half a mile from the subject property.

B. The Wilco ProjectThe Somerset Group’s 7-story, 152-unit Wilco project is also expected to reach completion by the end of 2019. The average unit is 640 sq. ft. & is intended as “a homage to the surrounding historical community with hints of Art Deco, Mid-Century Modern, and Spanish Revival architecture.” This development is located just 2 miles away from the subject property.

C. Alexan South Echo Located just a few streets down from the subject property, the project consists of a six-story structure featuring 200 market rate apartments above approx. 22,000 square feet of prime street-fronting commercial space and underground parking. The development has recently reached completion.

D. Hope on AlvaradoJust south of the subject property is a transitional housing project designed by KTGY Architecture. Hope on Alvarado creatively utilizes purpose-built steel modules into a modern and affordable transitional housing community for the Los Angeles low-income population. Developer Aedis Real Estate Group is planning a series of similar shipping container developments to be built in Los Angeles over the next year. The building is constructed around a central courtyard, providing privacy, safety and a deepened sense of community. A partially sub-grade parking garage uniquely navigates the slope of the site allowing the garage to be hidden.

When complete, Hope on Alvarado will hold 84 affordable apartments (a mix of studios and one-bedrooms) for formerly homeless residents, along with officers for on-site case workers. Aedis will contract with the county’s health services department to provide rental subsidies and social services. It secured financing from tax-exempt bonds, and under those agreements, the units will remain affordable for 55 years. The total project costs over $27 million and is expected to finish by the end of 2019 and estimated to open early 2020.


The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guar-antees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or com-parable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

JAMES CAPITAL ADVISORS, INC.

DISCLAIMERFOR INQUIRIES

PLEASE CONTACT

JOHNNY CLEATORSenior Associate

(424) [email protected] RE Lic. 01951437

will jamesDirector


tom jonssonDirector


prime westlake development james capital advisors … · nightlife scene. indie music venues,...

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