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WEST HOLLYWOOD, CA 900461036 NORTH GENESEE AVENUE
TABLE OF CONTENTS
48
1116
JEFFREY BENSONFirst Vice President InvestmentsDirector, National Multi Housing GroupDirect | [email protected]: CA 01327285
EXCLUSIVELYLISTED BY:
RICHARD RINGERSenior Managing Director InvestmentsSenior Director, National Housing GroupDirect | [email protected]: CA 01494512
executive summary
market overview
market comparables
fianancial summary
4E X E C U T I V E S U M M A R Y
THE OFFERINGMarcus & Millichap is pleased to present 1036 North Genesee Avenue, a 10-unit multifamily property located in the desirable and trendy community of West Hollywood. Constructed in 1960, the two-sto-ry building offers semi-subterranean parking for 10 vehicles. The 8,190 square-foot building, which is situated on a 6,565 square-foot lot, has a unit mix composed of one two-bedroom/one-bathroom unit, one two-bedroom/two-bathroom unit, and eight one-bedroom/one-bathroom units.
This property is located east of Fairfax Avenue, one block south of Santa Monica Boulevard and is within walking distance to many of the restaurants, bars, shopping and entertainment West Hollywood is known for. Tenants are able to walk to Whole Foods, Starbucks, Trader Joe’s, The Griddle Café, Laugh Factory, Bar Marmont, French Market Place, 7-Eleven, Bank of America, Shell and Laurel Park to name a few. With a tremendous 70% +/- rental upside, 1036 North Genesee Avenue will appeal to any savvy investor looking to acquire a well-maintained building, with a value add component, in the highly sought-after West Hollywood community.
1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046 RINGER | BENSON AT MARCUS & MILLICHAP
Address 1036 North Genesee AvenueWest Hollywood, California 90046
APN 5530-015-013Zoning WDR3C*Number of Units 10Number of Stories 2Number of Buildings 1Year Built 1960Building SF 8,190 SFLot Size 6,565 SFType of Ownership Fee Simple
building
property summary
INVESTMENT HIGHLIGHTS
P r i m e W e s t H o l l y w o o d
L o c a t i o n
S i g n i f i c a n tR e n t a l U p s i d e
O n - S i t eP a r k i n g f o r A l l
U n i t s
9 5 W a l kS c o r e
1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046 RINGER | BENSON AT MARCUS & MILLICHAP
Strategic Value Add: InteriorsThere is a clear opportunity in the submarket to renovate all units to higher-end specifications inlcuding new cabinet faces, stainless steel appliances, quartz countertops, modern lighting and fixtures. By renovating to the standards depicted below, 1036 North Genesee will be able to further augment the income stream.
INTERIOR IDEAS
1 NEW CABINET FACES 2 MODERN APPLIANCES 3 TILE BACKSPLASH
4 UPDATED LIGHTING 5 QUARTZ COUNTERTOPS 6 STAINLESS STEEL FIXTURES
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1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046 RINGER | BENSON AT MARCUS & MILLICHAP
8MARKET
OVERVIEW
WEST HOLLY WOODWest Hollywood is a dense, lively and walkable neighborhood with a bustling nightlife and high concentration of well-known restaurants, bars, music and entertainment venues as well as celebrity hang-outs, such as The Troubadour, Soho House, The Abbey, Whisky Bar, Chateau Marmont, among many others. Just minutes from the Sunset Strip, tourist-centric Hollywood, Beverly Hills and a newly resurgent Downtown Los Angeles, West Hollywood is a prime area for an active population.
T H E Q U I N T E S S E N T I A L U R B A N L I F E S T Y L E
1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046 RINGER | BENSON AT MARCUS & MILLICHAP
1036 N GENESEE AVENUE
PRIME WEST HOLLY WOOD LOCATION1036 N Genesee Avenue is located in prime West Hollywood between Santa Monica Boulevard and Fairfax Avenue. This location is one of the most desirable areas of West Hollywood, known for its great walkability with a walk score of 95 and a 60 transit score. From this location tenants can walk to the world famous Sunset Strip and the hip and trendy Santa Monica Boulevard with many places for shopping, dining, entertainment and nightlife. This location is also serviced by several highly-rated public schools, such as Laurel Elementary School and Fairfax High School, both about a half mile away.
The Grove Shopping Mall 1.3 milesThe Farmers Market 1.5 milesCedar Sinai Medical Center 2.3 milesBeverly Center Shopping Mall 2.0 milesPacific Design Center 1.8 milesRobertson Shopping Area 2.5 miles
POPULAR DESTINATIONS WITHIN 2 MILES
LACMA 2.1 milesSunset Strip 1.8 milesRunyon Canyon 1.6 milesTarget .9 milesHollywood & Highland 1.9 milesBeverly Hills 3.0 miles
WALK SCORE
95 "Walker’s Paradise"Daily errands do not
require a carTRANSIT SCORE
57 "Good Transit"Many nearby public
transportation options
1036 NO
RTH G
ENESEE AVEN
UE
TargetCityGrid MediaSunset Marquis1 OAKMondrian Los AngelesPavilionsAndaz West HollywoodWhole Foods MarketN Compass IncDailey & Associates IncThe London West HollywoodBest BuyThe Standard, Hollywood
KashtanBeriozka OneOpen Cafe Productions IncKung Pao BistroEl Chile TaqueriaSubway RestaurantsAstro BurgerFatburgerGalanga Thai FusionOki DogEmployees OnlyScrumptious Cafe BakeryLos Tacos
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MAJOR EMPLOYERS LOCAL AMENITIESDINING & DRINKING
Bike Score“BIKEABLE”Mostly flat, minimal bike lanes.
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1
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30 2427
2532
191835
3816
3414 15
2331
2212
9211
10
36137
35
4
6
37
17 2120
8
2628
29
33
14151617181920212223242526
DelilahLaurel HardwareGessoIrv’s BurgersCape Seafood & ProvisionsSurly GoatFubarHarlowe Bar
272829303132333435
Whole FoodsTrader Joe’sBristol FarmsBank of America
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1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046 RINGER | BENSON AT MARCUS & MILLICHAP
WES
T H
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EVEL
OPM
ENTS
ROBERTSON LANERobertson Lane plans to create a new pedestrian pathway connecting the West Hollywood Design District, Boystown and West Hollywood Park. In addition to a 30 foot wide pedestrian lane, the development plans to feature restaurants, bars, retail and nightlife, 241 hotel rooms, over 1,000 parking spaces as well as public open spaces.
8159 SUNSETFrank Gehry-designed mixed use project with retail, residential and 27,000 SF central plaza.
SUNSET TIMEIn the former House of Blues location, 35,000 SF of retail space, a nightclub hotel rooms, condos and apartments.
8500 SUNSET RESIDENCESTwo eight-story towers at La Cienega and Sunset.8950 SUNSET169-room Boutique hotel with residences, a rooftop pool and restaurants.
WEST HOLLYWOOD EDITION150-room Ian Schrager hotel, including high-end condos and lush landscaping.
SUNSET BOULEVARDDEVELOPMENTS
WEST HOLLYWOOD PARK DEVELOPMENT
LA BREA/WILLOUGHBYFour-story mixed-use project with 33,500 SF of ground floor retail and 179 residential units.
LA BREA/FOUNTAINSix-story mixed-use project with 18,000 SF of retail and 187 apartments in the old Jon's market space.
LA BREA/LEXINGTONFive-story, 32-unit building of affordable housing.
LA BREA/SANTA MONICASix-story, mixed-use project with 12,800 SF of retail space and 184 apartments.
LA BREA/ROMAINEFormer industrial building will be refurbished into 11,500 SF of retail space and 33,000 SF of office space
LA BREA BOULEVARDDEVELOPMENTS1036 N GENESEE AVENUE
1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046 RINGER | BENSON AT MARCUS & MILLICHAP
11MARKET
COMPARABLES
Untitled map
Untitled layer
1036 N Genesee Ave
1001 N Orange Grove Ave
1001 N Ogden Dr
939 N Ogden Dr
1009 N Edinburgh Ave
1319 Havenhurst Dr
1267 N Laurel Ave
1246 N Hayworth Ave
1122 N Hayworth Ave
2
AVERAGE PRICE PER UNIT
$359,640
AVERAGE PRICE PER SF
$423.48
PROPERTYYEAR BUILT UNITS PRICE
CAP RATE GRM $/UNIT $/GROSS SF
SALEDATE STUDIO 1 BED 2 BED 3 BED
1036 N Genesee
West Hollywood, CA 90046
1960 10 $3,300,000 3.11% 18.32 $330,000 $402.93 - 8(1+1) 1(2+1)1(2+2)
-
1 1001 N Orange Grove
West Hollywood, CA 90046
1958 12 $4,000,000 4.35% 14.73 $333,333 $419.55 10/5/2018 - 10(1+1) 1(2+1)1(2+1.5)
-
2 1001 N Ogden Drive
West Hollywood, CA 90046
1959 19 $6,795,200 3.58% 16.69 $357,642 $461.38 9/10/2018 - 14(1+1) 5(2+2) -
3 939 N Ogden Drive
West Hollywood, CA 90046
1957 16 $5,604,800 3.56% 16.47 $350,300 $416.03 9/10/2018 - 5(1+1) 5(2+1) 6(3+2)
4 1009 N Edingburgh Avenue
West Hollywood, CA 90046
1971 9 $3,525,000 4.46% 15.67 $391,667 $430.51 7/12/2018 1(0+1) 4(1+1) 4(2+2) -
5 1319 Hayvenhurst Drive
West Hollywood, CA 90046
1953 14 $5,500,000 3.26% - $392,857 $418.19 8/8/2018 - 9(1+1) 5(2+2) -
6 1267 N Laurel Avenue
West Hollywood, CA 90046
1958 22 $7,300,000 3.59% 17.49 $331,818 $399.96 6/1/2018 4(0+1) 12(1+1) 6(2+2) -
7 1246 N Hayworth Avenue
West Hollywood, CA 90046
1962 18 $6,726,000 3.30% 17.82 $373,667 $417.30 4/24/2018 - 10(1+1) 8(2+2) -
8 1122 N Hayworth Avenue
West Hollywood, CA 90046
1960 24 $8,300,000 3.23% 17.80 $345,833 $424.90 8/24/2018 - 16(1+1) 8(2+2) -
SALES COMPARABLES
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1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046 RINGER | BENSON AT MARCUS & MILLICHAP
16FINANCIAL SUMMARY
PROPERTY 1 BED / 1 BATH 2 BED / 1 BATH 2 BED / 2 BATH
1 939 N Ogden Drive
West Hollywood, CA 90046
$2,375 -
2 1001 N Ogden Drive
West Hollywood, CA 90046
- - $2,800
3 1218 N Laurel Avenue
West Hollywood, CA 90046
$2,375 $2,695
4 1217 N Vista Street
West Hollywood, CA 90046
$2,250 -
5 1423 N Hayworth Avenue
West Hollywood, CA 90046
$2,250 -
6 925 N Curson Avenue
West Hollywood, CA 90046
- - $2,850
7 1122 N Hayworth Avenue
West Hollywood, CA 90046
$2,300 - $3,195
8 1019 N Hayworth Avenue
West Hollywood, CA 90046
- - $2,800
9 1127 N Hayworth Avenue
West Hollywood, CA 90046
$2,250 - -
RENT COMPARABLES
Untitled map
Untitled layer
939 N Ogden Dr
1001 N Ogden Dr
1218 N Laurel Ave
1217 N Vista St
1423 N Hayworth Ave
925 N Curson Ave
1122 N Hayworth Ave
2
1
43
5
6
7
81036 N GENESEE AVENUE
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1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046 RINGER | BENSON AT MARCUS & MILLICHAP
# UNIT TYPE CURRENT PRO FORMA
1 2 Bedroom/1 Bathrom $822 $2,650
2 1 Bedroom/1 Bathroom * $2,350 $2,350
3 2 Bedroom/2 Bathroom $992 $2,800
4 1 Bedroom/1 Bathroom $1,444 $2,350
5 1 Bedroom/1 Bathroom $1,391 $2,350
6 1 Bedroom/1 Bathroom $1,750 $2,350
7 1 Bedroom/1 Bathroom $1,088 $2,350
8 1 Bedroom/1 Bathroom $1,398 $2,350
9 1 Bedroom/1 Bathroom (Large) * $2,500 $2,500
10 1 Bedroom/1 Bathroom $1,274 $2,350
*#2 Vacant Unit and #9 Vacant Unit with Separate Dining/Breakfast Area
TOTAL - VACANT $0 $0
TOTAL - OCCUPIED $15,008 $24,400
TOTAL $15,008 $24,400
INCOME CURRENT PRO FORMA
Gross Scheduled Rent $180,098 $292,800
Loss/Gain to Lease $112,702
Vacancy $3,602 $5,856
EFFECTIVE RENTAL INCOME $176,496 $286,944
Laundry Income $1,800 $1,800
EFFECTIVE GROSS INCOME $178,296 $288,744
EXPENSES CURRENT PRO FORMA
Real Estate Taxes $39,471 $39,471
Insurance $2,500 $2,500
Utilities (Includes Trash) $12,450 $12,450
Repairs & Maintenance $9,513 $9,513
Landscaping $1,800 $1,800
Pest Control $960 $960
Reserves $2,000 $2,000
Management Fee $7,060 $11,478
TOTAL EXPENSES $75,754 $80,172
Per Unit $7,575 $8,017
Per SF $9.25 $9.79
Percent of EGI 42.5% 27.8%
NET OPERATING INCOME $102,542 $208,572
RENT ROLL OPERATING STATEMENT
1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046 RINGER | BENSON AT MARCUS & MILLICHAP
# OF UNITS UNIT TYPE CURRENT RENT MONTHLY INCOME PRO FORMA RENT MONTHLY INCOME
8 1 bed/1 batth $1,261 - $2,500 $13,194 $2,350-$2,500 $18,800
1 2 bed/1 bath $822 $822 $2,650 $2,650
1 2 bed/2 bath $992 $992 $2,800 $2,800
10 TOTAL $15,008 $24,400
PRICE $3,300,000
Number of Units 10
Price/Unit $330,000
Gross SF 8,190
Price/SF $402.93
CAP Rate - Current 3.11%
CAP Rate - Pro Forma 6.32%
GRM - Current 18.32
GRM - Pro Forma 11.27
Year Built 1960
Lot Size 6,565
Type of Ownership Fee Simple
OFFERING SUMMARY
1036 North Genesee AvenueWest Hollywood, CA 90046
INCOME CURRENT PRO FORMA Gross Scheduled Rent $180,098 $292,800
Loss/Gain to Lease $112,702
Vacancy $3,602 $5,856
EFFECTIVE RENTAL INCOME $176,496 $286,944
Laundry Income $1,800 $1,800
EFFECTIVE GROSS INCOME $178,296 $288,744
EXPENSES CURRENT PRO FORMA Real Estate Taxes $39,471 $39,471
Insurance $2,500 $2,500
Utilities (Includes Trash) $12,450 $12,450
Repairs & Maintenance $9,513 $9,513
Landscapping $1,800 $1,800
Pest Control $960 $960
Reserves $2,000 $2,000
Management Fee $7,060 $11,478
TOTAL EXPENSES $75,754 $80,172
Per Unit $7,575 $8,017
Per SF $9.25 $9.79
Percent of EGI 42.5% 27.8%
NET OPERATING INCOME $102,542 $208,572
FINANCIAL ANALYSIS
1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046
JEFFREY BENSONFirst Vice President Investments
Director, National Multi Housing GroupDirect | 310.909.5420
[email protected]: CA 01327285
RICHARD RINGERSenior Managing Director Investments
Senior Director, National Housing GroupDirect | 310-909-5428
[email protected]: CA 01494512