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1744 Butler AvenueLos Angeles, California 90025
$9,675,000
16-Unit Apartment Building in Prime West
Los Angeles | Built in 1997
Major Value-Add Opportunity - Current Rents Over 35% Below
Market
Table of Contents3 Investment Summary
▪ The Opportunity ▪ Property Description ▪ Exterior and Interior Photos ▪ Aerial Photos
12 Market Overview ▪ Apartment Market Overview ▪ Major Employers and Places of Interest ▪ Silicon Beach Tech and
Entertainment Landscape ▪ Nearby Developments ▪ Demographics
17 Financial Summary ▪ Pricing, Property and Operating
Statement Summary ▪ Rent Roll ▪ Sales Comparables ▪ Sales Comparables Map ▪ Rent Comparables ▪ Rent Comparables Map
Copyright © 2020 Transwestern. California Brokerage License #01263636. The information in this offering memorandum was gathered by Transwestern from sources believed reliable. Transwestern has not verified the information and makes no guarantee, warranty or representation about it. It is the potential buyer’s responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. Potential buyers and their advisors should conduct a careful, independent investigation of the property to determine to their satisfaction the suitability of the property for their needs.
John SwartzManaging [email protected] Lic 01873487
Josh KaplanManaging [email protected] Lic 01934177
Transwestern Real Estate Services601 S. Figueroa St, Suite 3650Los Angeles, CA 90017213.624.5700transwestern.com
Troy LuceroSenior [email protected] Lic 02015701
3
Transwestern as the exclusive listing agent is pleased to present
the opportunity to acquire 1744 Butler Ave, a 16-unit apartment
building built in 1997. The property is located just south of Santa
Monica Blvd, between Federal Ave, and Sawtelle Blvd in the heart
of West Los Angeles.
Investment Summary
Offering Price: $9,675,000$604,688 Per Unit
18.4 Current Gross Rent Multiplier
3.45% Current Capitalization Rate
The Opportunity ▪ PRIME VALUE-ADD OPPORTUNITY - Current rents are over 35%
below market
▪ OPPORTUNITY TO IMPLEMENT a RUBS program as leases turn over.
▪ EXCELLENT UNIT MIX – thirteen (13) 2bed+2bath units, two (2) 3bed+3bath units, and one (1) guest room unit.
▪ DESIRABLE FLOOR PLANS – All of the 2-bedroom and 3-bedroom units are large units and have fireplaces and balconies. All of the bathrooms in these units are full bathrooms.
▪ EXEMPT From Los Angeles Rent Control (RSO).
▪ AMPLE PARKING – 31 total parking spaces | 11 single spaces and 10 tandem spaces.
▪ GUEST ROOM unit will be delivered vacant.
▪ OPPORTUNITY TO INCREASE REVENUE by turning a large room on the first floor into either a bachelor unit or a gym for the tenants resulting in higher rents/revenue.
▪ OPPORTUNITY TO CONVERT a large private patio into a barbecue or outdoor lounge area for the tenants.
4
1744 Butler Ave is a 16-unit apartment building constructed in 1997. The unit mix consists of 13 2bed+2bath units, two 3bed+3bathroom units, and one guest room unit. The property is a three-story,18,484-square-foot building with wood frame and stucco construction over a semi-subterranean parking garage situated on a 11,655-square-foot lot.
Tenants are welcomed into the building by a large atrium courtyard that features a central landscape area with large palm trees that extend up past the roof line. The units are all accessed by open corridors that provide natural light into the units. All of the units have central air, gas fireplaces, high ceilings and very large open floor plans providing an investor the opportunity to complete their own renovation plan and significantly increase rents. All units facing Butler Ave feature French doors that lead to a large balcony. Some of the units have undergone an extensive renovation program in the past two years and feature new flooring throughout, new kitchen cabinets with black stainless-steel appliances including Samsung refrigerators, and updated bathrooms. The three-bedroom units are located on the third floor and feature higher ceilings and larger windows that let in more natural light. There is an opportunity to add additional amenities for tenants by converting a large room on the first floor into a recreational room. There is also an extra-large patio space on the third floor that is currently not being utilized. Adding soft seating and barbecue grills to the space would be a great amenity to tenants and would help the building demand premium rents.
Secured tuck-under parking is provided on-site with 31 spaces comprised of 10 tandem and 11 single spaces. Units are separately metered for electricity and gas, and the landlord pays for water and trash. The property also includes a laundry room on each floor with one washer and dryer that are owned by the landlord. A trash chute can be found inside the laundry rooms in each floor for tenants’ convenience.
.
Property Description
NUMBER OF UNITS 16 units 13 2bed+2bath Two 3bed+3bath One guest room
YEAR BUILT 1997
BUILDING SIZE +18,484 SF (Per Title Pro - Buyer to verify)
LAND SIZE +11,665 SF (Per Title Pro - Buyer to verify)
ZONING [Q]R3-1 (Per Title Pro - Buyer to verify)
PARKING 31 total spaces 10 tandem 11 single
ASSESSOR PARCEL NUMBER 4261-016-027
5
Property Location 1744 Butler Avenue is located just south of Santa Monica Boulevard, north of Olympic Boulevard and west of Interstate 405 in prime upscale West Los Angeles. The property is within walking distance of Sawtelle Japan Town and the retail corridor along Santa Monica Boulevard.
The proximity to both the Interstate 10 and 405 freeways allows tenants access to major employment centers including Santa Monica, Beverly Hills, the Olympic Corridor, Brentwood, Venice, Westwood, Century City, The South Bay, Downtown Los Angeles, and the San Fernando Valley. The Westside’s economy has expanded beyond entertainment in recent years as adjacent areas such as Playa Vista and Culver City have emerged as a major Southern California technology hub known as Silicon Beach. 1744 Butler Ave offers easy access to the world’s top tech and entertainment employers.
Property Description
6
Exterior Photos
7
Exterior Photos
8
Interior Photos
9
Interior Photos
10
Aerial View Facing Downtown Los Angeles
CENTURY CITY DOWNTOWN LA
11
Aerial View Facing Santa Monica
SANTA MONICA
12
Los Angeles Apartment Market OverviewAlthough vacancy levels were up significantly for brand-new construction apartment units in Los Angeles County during Second Quarter 2020, according to Costar, the vacancy rate for the majority of the apartment stock remained below 5%. Despite the current economic issues with the coronavirus pandemic, Costar also reported that overall market rent growth for the county is only down 1.2% for 2020 year to date. Los Angeles County currently has 25,440 units under construction, of which 8,000 are expected to be delivered this year.
West Los Angeles Submarket OverviewWest Los Angeles (often referred to as West L.A.) is a district in the Westside region of Los Angeles County. The district’s geographic boundaries are the Santa Monica Freeway (I-10) to the south, Santa Monica to the west, Brentwood and Westwood to the north, and Century City, Rancho Park and Cheviot Hills to the east. This district contains Sawtelle Japan Town, an area of Japanese- American culture along Sawtelle Boulevard.
jj
j
j
jj
j
j
Palisades Park
Santa Monica Airport
Temescal Gateway Park
University of California-LA
Veterans Administration Med Ctr
Santa Monica State Beach
Will Rogers State Historic Park
Kenneth Hahn State Recreation Area
CULVER CITY
SANTA MONICA
BEVERLY HILLS
WEST HOLLYWOOD
PALMS
VENICE
VAN NESS
WESTWOOD
JEFFERSON
HYDE PARK
MAR VISTA
PARK LA BREA
WEST LOS ANGELES
BEL AIR
VIEW PARK
BRENTWOODHANCOCK PARK
LEIMERT PARK
CENTURY CITY
LADERA HEIGHTS
BRENTWOOD PARK
MARINA DEL REY
PACIFIC PALISADES
§̈¦405
§̈¦10
§̈¦405
§̈¦10
Venice Blvd
W Pico Blvd
Wilshire Blvd
W Olympic Blvd
W S
unse
t Blv
d
W 3rd St
Melrose Ave
Rodeo Rd
Sawtelle Blvd
14th St
Beverly Blvd
Culv
er B
lvd
W Slauson Ave
evA notgnilr
A
7th St
Palms Blvd
S Sepulveda Blvd
Cre
nsh
aw B
lvd
S Bundy Dr
Overland Ave
Monta
na Ave
W Adams Blvd
S Barrington Ave
W Jefferson Blvd
Hau
ser
Blv
d
San Vicente Blvd
Motor Ave
S Centinela Ave
evA xafri aF
S
lP notli
W N
Rose Ave
tS eni
V
Westw
ood Blvd
S Ro
bert
son
Blv
d
W W
ashi
ngto
n Bl
vd
S La
Cie
nega
Blv
d
Jeff
erso
n Bl
vd
N B
everly Dr
26th St
4th StNational Blvd
Olympic
Blvd
Sepulveda Blvd
23rd St
evA aer
B aL N
lP notli
W S
Stock
er St
W 54th St
S La Brea A
ve
Pacific Ave
Main St Washington Pl
Manning Ave
Veteran Ave
Hilg
ard
Ave
Burton Way
W 18th St
Walgrove Ave
20th St
McLaughlin Ave
W Vernon Ave
Colora
do Ave
tS rendra
G N
Airport
Ave
16th St
N Palm
Dr
S Beverly Dr
Cadillac Ave
rD li
wreveB
Roscomare Rd
Cattaraugus Ave
Cotner Ave
N W
hittier Dr
tS re
woG
N
N San Vicente Blvd
Ocean Park Blvd
Ove
rhill
Dr
dvlB tse
W
S Santa Monica Blvd
Cast
le H
eigh
ts A
ve
Hughes Ave
Tem
esca
l Can
yon
Rd
Avenue of the Stars
evA dnalhgi
H N
Duquesne Ave
evA ero
mssoR
N
Calif
orni
a Av
e
W Beverly Blvd
Hillsboro A
ve
Brad
dock
Dr
N D
ohen
y D
r
Fair
fax
Ave
Mesm
er Ave
W 48th St
Club Dr
Ocean Ave
dvlB agenei
C aL N
20th St
San Vicente Blvd
Manning Ave
W Sunset Blvd
26th St
W Washington Blvd
National Blvd
UV1
UV90
£¤101
Pacific Ocean
1744 Butler Ave
Market Overview
13
j
j
j
j
Santa Monica State Beach
Veterans Administration Med Ctr
Riviera Country Club
Bel-Air Country Club
Hillcrest Country Club
Brentwood Country Club
Rancho Park Golf Course
The Los Angeles Country Club
Los Angeles National Cemetery
Will Rogers State Historic Park
CULVER CITY
BEVERLY HILLS
PALMS
WESTWOOD
WEST LOS ANGELES
BEL AIR
BRENTWOOD
CENTURY CITY
CULVER JUNCTION
SAWTELLE CHEVIOT HILLS
LUCERNE-HIGUERA
SOUTH ROBERTSON
WASHINGTON CULVER
SANTA MONICA
DOWNTOWN CULVER CITY
§̈¦405
§̈¦10
§̈¦405
§̈¦10
W S
unse
t Blv
d
W Pico Blvd
W Olympic Blvd
14th St
S Sepulveda Blvd
Wils
hire B
lvd
S Bundy Dr
Monta
na Ave
7th St
20th St
S Barrington Ave
San Vicente Blvd
Motor Ave
Venice Blvd
Overland AveSaw
telle Blvd
Westw
ood Blvd
S Ro
bert
son
Blv
d
26th St
Pico Blvd
Sunset B
lvd
N Beverly Dr
Palms Blvd
National B
lvd
S Beverly Glen Blvd
Olympic
Blvd
Manning Ave
Veteran A
ve
Burton Way
Hilgard Ave
Ocean Ave
Colora
do Ave
Cotner Ave
N Sepulveda B
lvd
rD yneho
D N
Idaho Ave
N Palm
Dr
rD ylreve
B S
rD li
wreveB
rD yneho
D S
Cattaraugus Ave
Melrose Ave
Centinela Ave
W 18th St
S Santa Monica Blvd
Cast
le H
eigh
ts A
ve
Cadillac Ave
Hughes Ave
Bellagio Rd
Avenue of the Stars
Jefferson Blvd
23rd St
W Beverly Blvd
Ocean Park Blvd
Hillsboro A
ve
dvlB nostrebo
R N
Roscomare Rd
Holloway Dr
evA dleifna
C S
Entr
ada
Dr
W Channel Rd
Club Dr
Venice Blvd
26th St
National Blvd
W Sunset Blvd
20th St
Manning Ave
UV2
UV1
Pacific Ocean
1744 Butler Ave
BrentwoodCountry Mart
Hammer Museum
Geffen Playhouse
Theater
The GettyCenter
SawtelleJapantown
WestfieldCentury
City
Rodeo Drive
MGM MirageHoulihan Lokey Inc.
ICM Partners
Activision Blizzard
Universal Music Group
MGM Resorts InternationalHBO
Geffen Records Water Garden Management
Lionsgate Entertainment
Fox 11 Los Angeles
Manatt Phelps & Phillips LLP
Leonard Green & Partners LP
Professional Security Consultants
UCLA Health System
UCLA School of Medicine
University of California, Los Angeles
Major Employers ▪ UCLA Health System
▪ University Of California, Los Angeles
▪ Fox11 Los Angeles
▪ Leonard Green & Partners LP
▪ Professional Security Consultants
▪ Universal Music Group
▪ Water Garden Management
▪ Activision Blizzard
▪ Home Box Office
▪ Houlihan Lokey Inc.
▪ ICM Partners
▪ UCLA School Of Medicine
▪ Geffen Records
▪ Lions Gate Entertainment
▪ Manatt Phelps & Phillips LLP
▪ MGM Mirage
▪ MGM Resorts International
Points of Interest ▪ Brentwood Country Mart
▪ Sawtelle Japantown
▪ Geffen Playhouse Theater
▪ Hammer Museum
▪ Westfield Century City
▪ Rodeo Drive
Major Employers andPoints of Interest
14
W Pic o Blvd
Cul
ver
Blvd
Wils
hire B
lvd
Venice Blvd
Monta
na Ave
20th S t
S Sepulveda Blvd
S La
Cie
ne
ga
Blv
d
San V icente Blvd
Rose A ve
S Centinela A
ve
SF a
i rfa
xA
veO
cean A ve
S Bundy Dr
26th S t
WO lympic
Blvd
Rodeo Rd
SR
ob
ert
son
Blv
dWestw
ood Blvd
LincolnBlv d
O ly mpic Blvd
Pacific Ave
Nat ional Blvd
W
S uns e tBl
vd
Overland A
ve
Manning A ve
O cean Park Blvd
Motor
A ve
Washing ton Pl
W J efferson Blvd
Sepul veda Blvd
Pico Blvd
everly Glen B
lvd
Santa M
onica B
lvd
C entinela A veW
C e nt ine la A ve
St ocker St
s
La B
rea
Ave
Be
verw
il D
r
ge
Ave
Beethoven S t
W Washing ton Blvd
lvd
Playa St
Neilson W
ay
4th S t
Gat
eway
Blv
d
W ashing ton Blv d
W S lauson A ve
St
Venice Blvd
S S
ep
ulv
ed
a B
lvd
W i lshire Blvd
20th S t
Linco ln Blvd
Venice Blvd
26th S t
W J efferson Blvd
Linco ln Blvd
Overland A ve
anV icente Blvd
W O lympic Blvd
S C entinela A ve
Venice Blvd
Cul
ver
Blvd
J eff
ers
on
Blvd
Pico Blvd
W W ashing ton Blvd
Linco ln Blvd
N at i onal Blvd
S Bundy D
r
W S unse
Overland A
ve
Venice Blvd
Palms
Westwood
Crenshaw
Brentwood
Ocean Park
Rancho Park
Windsor Hills
Marina del Rey
Ladera Heights
West Los A ngeles
Venice
Culver City
Santa Monica
405
10
10
187
90
1
2
1
187
1
1
1
90
1
1744 Butler Ave
Silicon Beach Tech and Entertainment Landscape
15
Linea | 2455 S Sepulveda BlvdDeveloped by Carmel Partners, Linea is a new 595-unit apartment building next to the Expo/Sepulveda Metro station.
Landmark Apartments | 11750 Wilshire BlvdCurrently under construction, Landmark Two is a new apartment development by Douglas Emmett. Landmark Two, scheduled for completion in 2022, has a total of 376 units.
West Edge | 12101 W Olympic BlvdWest Edge, a mixed-use building currently under construction from developer Hines will consist of 200,000 SF of creative office space, 90,000 SF of retail and 600 apartments.
LUMEN West LA | 11355-11377 W Olympic BlvdThe under-construction LUMEN West LA project from developers McCarthy Cook and Northwood Investors will add approximately 120,000 square feet of new office and retail space to the property at 11355 W. Olympic Boulevard.
Expo Station | 12414 Exposition Blvd.Now under construction, Expo Station is a 3-story creative office development from Luzzato Company. The building is comprised of 80,340 SF.
On Butler | 11419 W Olympic BlvdOn Butler is a 77-unit apartment building with 6,500 square feet of retail space. Currently under construction, On Butler is developed by Hypericum Companies
1650 Sawtelle | 1650 Sawtelle BlvdDeveloped by Nayssan Properties, 1650 Sawtelle will bring 48 apartment units to West LA.
WEST LOS ANGELES
§̈¦405
§̈¦10
§̈¦405
§̈¦10
S Bundy Dr
W Pico Blvd
W Olympic Blvd
S Barrington Ave
Sawtelle Blvd
S Sepulveda Blvd
Cotner Ave
Westw
ood Blvd
Idaho Ave
Wils
hire B
lvd
Olympic Blvd
Colora
do Ave
Gat
eway
Blv
dCentinela Ave
26th
St
Overland Ave
National Blvd
Beloit AveUV2
Barry Ave
Federal Ave
Colby Ave
Butler Ave
Ohio Ave
Iowa Ave
Corinth Ave
Texas Ave
Stoner Ave
Veteran Ave
Armacost Ave
Kelton Ave
Selby Ave
Purdue Ave
Missouri Ave
S Westgate Ave
Mississippi Ave
Camden Ave
Midvale Ave
Centinela Ave
Nebraska Ave
La Grange Ave
Brockton Ave
Military Ave
Beloit Ave
Wellesley Ave
S Bentley Ave
Pontius Ave
Franklin St
Glendon Ave
Malcolm
Ave
Greenfield Ave
Exposition Blvd
Tennessee Ave
Goshen A
ve
Stewart St
Pelham Ave
Ayres Ave
Amherst Ave
Kiowa A
ve
Pearl St
Roch
este
r Ave
Broadway
Sawtelle Blvd
Mayfield
Ave
Granville Ave
Berkeley St
S Carmelina Ave
Overland Ave
Tilden Ave
S Saltair Ave
Manning Ave
Delaware AveRichland Ave
Yale St
Virginia Ave
Stanford St
Dowlen Dr W
Parnell Ave
Sardis Ave
Darlingto
n Ave
Brookhaven Ave
Cotner Ave
Massachusetts Ave
Graham Pl
Idaho Ave
W D
oroth
y St
Tennessee Pl
Pennsylvania A
ve
McC
lella
n D
r
Coolidge Ave
Wyoming Ave
Dowlen Dr E
Massachusetts Ave
Midvale Ave
Ohio A
ve
Colby Ave
Exposition Blvd
Amherst Ave
Stoner Ave
S Bentley Ave
Tennessee Ave
Federal Ave
Stoner Ave
Exposition Blvd
Nebrask
a Ave
Exposition Blvd
Rochester Ave
Tennessee A
ve
S Carmelina Ave
Ayres AveGranville Ave
Veteran Ave
Veteran Ave
Pennsylvania A
ve
Granville Ave
Richland Ave
Butler Ave
S Bentley Ave
Granville Ave
Missouri Ave
Kelton Ave
Stanford St
Kelton Ave
Tilden Ave
S Saltair Ave
Butler Ave
Barry AveColby Ave
Greenfield Ave
Iowa A
ve
S Bentley Ave
Pontius Ave
Berkeley St
Kelton AveMississippi Ave
La Grange Ave
Greenfield Ave
Granville Ave
Purdue Ave
Exposition Blvd
Camden Ave
Beloit Ave
Amherst Ave
Corinth Ave
Pearl St
3A
3B
2A
3A
2B
2C
54
55A
55A
1650 Sawtelle
LUMEN West LA
On Butler
Linea
West Edge
Expo Station
Landmark Apartments
1744 Butler Ave
▪ Linea 2455 S. Sepulveda Blvd 595 Units Delivered 2020
▪ Landmark Apartments 11750 Wilshire Blvd 376 Units Under Construction
▪ West Edge 12101 W. Olympic Blvd 600 Units, 200,000 SF office and 90,000 SF retail Under Construction
▪ LUMEN West LA 11355-11377 W Olympic Blvd 120,000 SF of office and retail Under construction
▪ Expo Station 12414 Exposition Blvd 80,340 SF creative office Under construction
▪ On Butler 11419 W Olympic Blvd 77 units and 6,500 SF of retail Under construction
▪ 1650 Sawtelle 1650 Sawtelle Blvd 48 units Under construction
Nearby Developments
Linea West Edge
1 MILE 3 MILE 5 MILEPOPULATION # % CHANGE # % CHANGE # % CHANGE
2010 Census 44,070 282,887 565,529
2019 Estimate 47,033 0.71% 295,744 0.48% 594,882 0.55%
2024 Projection 49,684 1.10% 303,825 0.54% 611,132 0.54%
HOUSEHOLD # % # % # %
2010 Census 22,502 129,217 261,771
2019 Estimate 23,675 0.55% 133,554 0.36% 273,494 0.47%
2024 Projection 24,811 0.94% 136,635 0.46% 280,160 0.48%
ETHNICITY/RACE # % # % # %
White 26,902 57.2% 191,346 64.7% 393,218 66.1%
Black 1,270 2.7% 10,647 3.6% 30,934 5.2%
Asian 11,758 25.0% 56,783 19.2% 88,638 14.9%
Hispanic Origin (Any Race) 8,607 18.3% 46,727 15.8% 108,269 18.2%
Other 18,859 40.1% 94,046 31.8% 170,731 28.7%
EDUCATION # % # % # %
Less than 9th grade 1,331 3.6% 5,947 2.8% 14,984 3.4%
Some High School 1,146 3.1% 5,310 2.5% 11,458 2.6%
High School Graduate 2,588 7.0% 15,929 7.5% 37,900 8.6%
GED/Alternative Credential 185 0.5% 1,487 0.7% 3,085 0.7%
Some College, no degree 4,807 13.0% 29,309 13.8% 65,664 14.9%
Associate Degree 1,849 5.0% 10,407 4.9% 21,594 4.9%
Bachelor's Degree 14,642 39.6% 79,858 37.6% 160,854 36.5%
Graduate/Professional Degree 10,390 28.1% 64,353 30.3% 125,158 28.4%
WORKPLACE & INCOME # % # % # %
Median Household Income $83,814 $89,719 $91,627
Average Household Income $118,073 $136,387 $139,612
All Employees 29,949 166,547 338,239
White Collar 24,528 81.9% 137,734 82.7% 276,680 81.8%
Blue Collar 3,893 13.0% 20,319 12.2% 42,280 12.5%
Services 1,557 5.2% 8,494 5.1% 18,941 5.6%
Daytime Population 84,751 474,736 901,453
2019 POPULATION
47,033 (+0.7% since 2010)
2024 POPULATION
49,684 (+1.1% est. over 2019)
MEDIAN AGE
35.3 years old
EDUCATION
68% have bachelor’s or higher
AVERAGE INCOME
$118,073
Demographics
17
PRICING SUMMARYPrice $9,675,000 Price Per Unit $604,688 Price Per SF $523 Current NOI $333,364 Pro Forma NOI $505,173 Cap Rate - Current 3.45%Cap Rate - Pro Forma 5.22%GRM - Current 18.4xGRM - Pro Forma 13.4x
PROPERTY SUMMARYYear Built 1997 Total Units 16 Building Area 18,484 SFAPN# 4261-016-027 Land Area 11,655 SFZoning [Q]R3-1 Parking 31 Spaces
11 Single, 10 Tandem
RENT ROLL SUMMARY CURRENT PRO FORMA
NO. UNITS FLOOR PLAN
IN-PLACE AVERAGE
RENT
TOTAL MONTHLY INCOME
SCHEDULED GROSS
INCOMEAVG PRO
FORMA RENT
TOTAL MONTHLY INCOME
SCHEDULED GROSS
INCOMELOSS TO
LEASELOSS TO LEASE %
1 Guest Room $2,000 $2,000 $24,000 $2,000 $2,000 $24,000 $0 0%13 2B+2BA $2,686 $34,924 $419,088 $3,700 $48,100 $577,200 $158,112 38%2 3B+3BA $3,225 $6,450 $77,400 $4,150 $8,300 $99,600 $22,200 29%
Totals/WTD Avg. 16 $2,711 $43,374 $520,488 $3,650 $58,400 $700,800 $180,312 35%
OPERATING STATEMENT SUMMARYREVENUE IN-PLACE PRO FORMAGross Potential Rent $520,488 $700,800 Vacancy (3%) - (21,024)Net Rental Income $520,488 $679,776 Laundry Income 4,600 4,600 RUBS Income - 16,032 Effective Gross Income $525,088 $700,408 ESTIMATED EXPENSES Per Unit Per UnitAdministrative $2,000 $125 $2,000 $125 Repairs & Maintenance 8,000 500 8,000 500 Turnover Expense 2,400 150 2,400 150 Management Fee (3.5%) 21,004 1,313 24,514 1,532 Utilities 31,516 1,970 31,516 1,970 Contract Services 4,800 300 4,800 300 Property Taxes (1.17%) 113,611 7,101 113,611 7,101 Direct Property Tax Assessment 1,993 125 1,993 125 Insurance 6,000 375 6,000 375 Total Expenses $191,724 $11,983 $195,235 $12,202 Net Operating Income $333,364 $505,173 Expense Ratio (% of EGI) 37% ($10.37 PSF) 28% ($10.56 PSF)
Financial Summary
18
CURRENT PRO FORMA
UNITOCCUPIED /
VACANT UNIT TYPE CURRENT RENTSCHEDULED
GROSS INCOME MARKET RENTSCHEDULED
GROSS INCOME LOSS TO LEASE101 Occupied 2B+2BA $2,999 $35,988 $3,700 $44,400 $701 102 Occupied 2B+2BA $2,525 $30,300 $3,700 $44,400 $1,175 103 Occupied 2B+2BA $2,750 $33,000 $3,700 $44,400 $950 104 Occupied 2B+2BA $2,525 $30,300 $3,700 $44,400 $1,175 105 Occupied 2B+2BA $2,525 $30,300 $3,700 $44,400 $1,175 201 Occupied 3B+3BA $3,200 $38,400 $4,150 $49,800 $950 202 Occupied 2B+2BA $2,425 $29,100 $3,700 $44,400 $1,275 203 Occupied 2B+2BA $2,700 $32,400 $3,700 $44,400 $1,000 204 Occupied 2B+2BA $2,525 $30,300 $3,700 $44,400 $1,175 205 Occupied 2B+2BA $2,700 $32,400 $3,700 $44,400 $1,000 206 Vacant Guest Room $2,000 $24,000 $2,000 $24,000 $0 301 Occupied 3B+3BA $3,250 $39,000 $4,150 $49,800 $900 302 Occupied 2B+2BA $3,500 $42,000 $3,700 $44,400 $200 303 Occupied 2B+2BA $2,525 $30,300 $3,700 $44,400 $1,175 304 Occupied 2B+2BA $2,525 $30,300 $3,700 $44,400 $1,175 305 Occupied 2B+2BA $2,700 $32,400 $3,700 $44,400 $1,000 Totals 16 18,484 SF $43,374 $520,488 $58,400 $700,800 $15,026
Loss To Lease % 35%
Rent Roll SummaryCURRENT PRO FORMA
NO.UNITS UNIT MIX % FLOOR PLANAVG. IN-PLACE
RENT TOTAL MONTHLY
INCOMEAVG. PRO
FORMA RENTTOTAL MONTHLY
INCOME LOSS TO LEASE1 6% Guest Room $2,000 $2,000 $2,000 $2,000 $0
13 81% 2B+2BA $2,686 $34,924 $3,700 $48,100 $13,176 2 13% 3B+3BA $3,225 $6,450 $4,150 $8,300 $1,850
Total/WTD Avg. 100% 16 $2,711 $43,374 $3,650 $58,400 $15,026 Gross Potential Income $520,488 $700,800 $180,312
Rent Roll
19
PROPERTY ADDRESSYEAR BUILT
SALE DATE SALE PRICE
CAP RATE GRM $PSF
$ PER UNIT BLDG SF
AVG UNIT SF
# OF UNITS
1818 Camden Ave Los Angeles, CA 90025
1987 May-2019 $9,792,000 N/A N/A $511 $612,000 19,166 1,198 16
1600 Camden Ave Los Angeles, CA 90025
1985 Feb-2019 $4,808,000 4.12% 15.7 $485 $601,000 9,918 1,240 8
1751 S Bentley Ave Los Angeles, CA 90025
1986 Apr-2018 $4,385,000 3.08% 19.9 $571 $626,429 7,674 1,096 7
1665 Manning Ave Los Angeles, CA 90024
2000 Feb-2018 $3,900,000 3.16% 19.6 $613 $650,000 6,358 1,060 6
TOTAL / AVERAGE $22,885,000 3.48% 18.0 $531 $618,514 43,116 1,165 37
1744 BUTLER AVE 1997 $9,675,000 3.45% 18.4 $523 $604,688 18,484 1,155 16
Sales Comparables
j
WEST LOS ANGELES
§̈¦405
§̈¦405
S Barrington Ave
S Sepulveda Blvd
Westw
ood Blvd
W Olympic Blvd
Cotner Ave
S Bundy Dr
Idaho Ave
Sawtelle Blvd
W Pico Blvd
Wils
hire B
lvd
San Vicente Blvd
Manning Ave
Colora
do Ave
Beloit Ave
UV2
Ohio Ave
Barry Ave
Veteran Ave
Butler Ave
Colby Ave
Federal Ave
Iowa Ave
Corinth Ave
Missouri Ave
Kelton Ave
Texas Ave
Stoner Ave
Armacost Ave
Purdue Ave
Camden Ave
Midvale Ave
La Grange AveS Westgate Ave
Nebraska Ave
Brockton Ave
Beloit Ave
S Bentley Ave
Pontius Ave
Glendon Ave
Mississippi Ave Selby Ave
Greenfield Ave
Kiowa A
ve
Malcolm
Ave
Goshen A
ve
Wellesley Ave
Tennessee Ave
Mayfield
Ave
Massachusetts Ave
Roch
este
r Ave
Sawtelle Blvd
Pelham Ave
Exposition Blvd
Overland Ave
Darlingto
n Ave
Granville Ave
Amherst Ave
Ayres Ave
Centinela Ave
S Saltair Ave
Manning Ave
Gorham
Ave
S Carmelina Ave
Military Ave
Dowlen Dr E
Franklin St
Parnell Ave
Dowlen Dr W
Wilkins Ave
Doroth
y St
Eastborn
e AveHolman Ave
Cotner Ave
Bonsall Ave
E Temple W
ay
Prosser Ave
Idaho Ave
Hadley Ln N Temple W
ay
Wyoming Ave
Bringham Ave
Fairburn Ave
Amherst Ave
Ohio A
ve
Camden Ave
S Bentley Ave
Stoner Ave
Holman Ave
Rochester Ave
Selby Ave
S Saltair Ave
La Grange Ave
Iowa A
ve
Glendon Ave
Midvale Ave
Greenfield Ave
Malcolm
Ave
Tennessee Ave
Granville Ave Midvale Ave
Malcolm Ave
Granville Ave
Kelton Ave
Missouri Ave
Mississippi Ave
Veteran Ave
Exposition Blvd
S Westgate Ave
Nebrask
a Ave
Malcolm
Ave
Beloit Ave
Pontius Ave
Veteran AveKelton Ave
Massachusetts Ave
Granville Ave
54
55A
55A
55B
55B-C
1600 Camden Ave
1751 S Bentley Ave 1818 Camden Ave
1665 Manning Ave
1744 Butler Ave
Sales Comparables
21
PROPERTY ADDRESS UNIT TYPE RENT COMMENTS
11950 Idaho Ave Single1 $2,558 Hardwood floors, stainless-steel appliances, controlled access, in unit laundry, garage parking, storage units.
1845 Butler Ave Single1 $2,194 Walk in closets, stainless-steel appliances, smart home technology, balcony, tile bathrooms, carpet living area, fireplace, communal laundry.
1929 Beloit Ave 2B+2BA $3,574 Sleek cabinetry, quartz countertops, stainless-steel appliances, custom lighting and hardwood-style vinyl flooring. Lavish in conveniences like air conditioning, an in-home washer and dryer, and your own private patio or balcony.
1432 S Saltair Ave 2B+2BA $3,895 Fully remodeled, large master bedroom, walk-in closets, custom kitchen recessed lighting, custom tile floors, quartz countertops, stainless-steel appliances, in-unit laundry.
2121 Beloit Ave 2B+2BA $3,900 Bountiful natural light in each room, no window obstructions, large walk-in closets or large sliding-door closets, granite kitchen counters.
2114 Colby Ave 3B+2BA2 $3,995 In-unit laundry, gated garage parking, hardwood floors, granite countertops, refrigerator, dishwasher, oven, spacious bedrooms.
Rent Comparables
22
PROPERTY ADDRESS UNIT TYPE RENT COMMENTS
1658 Colby Ave 3B+2.5BA2 $4,300 Laundry on-site, walk-in closet, master bath two-sink vanity, gas stovetop/oven, large fridge, dishwasher, large walk-in pantry, Venetian blinds, white stone fireplace.
1518 Federal Ave 3B+3BA $4,195 Kitchen with stainless-steel appliances, in-unit laundry, laminate hardwood floors, gated single-spaced parking (2 spaces) plenty of closet space, central AC and heating.
1Market rents for single units were utilized to estimate subject’s guest room unit market rent
2Market rents for 3b+2ba and 3b+2.5ba units were utilized to estimate subject’s 3b+3ba market rent
SUMMARY UNIT TYPE # OF UNITS AVG RENT
SUBJECT PROPERTY
Single 2 $2,376 $2,000
2B+2BA 3 $3,790 $3,700
3B+3BA 3 $4,163 $4,150
Rent Comparables
j
WEST LOS ANGELES
§̈¦405
§̈¦405
S Barrington Ave
S Sepulveda Blvd
Westw
ood Blvd
W Olympic Blvd
Cotner Ave
S Bundy Dr
Idaho Ave
Sawtelle Blvd
W Pico Blvd
Wils
hire B
lvd
San Vicente Blvd
Manning Ave
Colora
do Ave
Beloit Ave
UV2
Ohio Ave
Barry Ave
Veteran Ave
Butler Ave
Colby Ave
Federal Ave
Iowa Ave
Corinth Ave
Missouri Ave
Kelton Ave
Texas Ave
Stoner Ave
Armacost Ave
Purdue Ave
Camden Ave
Midvale Ave
La Grange AveS Westgate Ave
Nebraska Ave
Brockton Ave
Beloit Ave
S Bentley Ave
Pontius Ave
Glendon Ave
Mississippi Ave Selby Ave
Greenfield Ave
Kiowa A
ve
Malcolm
Ave
Goshen A
ve
Wellesley Ave
Tennessee Ave
Mayfield
Ave
Massachusetts Ave
Roch
este
r Ave
Sawtelle Blvd
Pelham Ave
Exposition Blvd
Overland Ave
Darlingto
n Ave
Granville Ave
Amherst Ave
Ayres Ave
Centinela Ave
S Saltair Ave
Manning Ave
Gorham
Ave
S Carmelina Ave
Military Ave
Dowlen Dr E
Franklin St
Parnell Ave
Dowlen Dr W
Wilkins Ave
Doroth
y St
Eastborn
e AveHolman Ave
Cotner Ave
Bonsall Ave
E Temple W
ay
Prosser Ave
Idaho Ave
Hadley Ln N Temple W
ay
Wyoming Ave
Bringham Ave
Fairburn Ave
Amherst Ave
Ohio A
ve
Camden Ave
S Bentley Ave
Stoner Ave
Holman Ave
Rochester Ave
Selby Ave
S Saltair Ave
La Grange Ave
Iowa A
ve
Glendon Ave
Midvale Ave
Greenfield Ave
Malcolm
Ave
Tennessee Ave
Granville Ave Midvale Ave
Malcolm Ave
Granville Ave
Kelton Ave
Missouri Ave
Mississippi Ave
Veteran Ave
Exposition Blvd
S Westgate Ave
Nebrask
a Ave
Malcolm
Ave
Beloit Ave
Pontius Ave
Veteran AveKelton Ave
Massachusetts Ave
Granville Ave
54
55A
55A
55B
55B-C
2121 Beloit Ave
1518 Federal Ave
1432 S Saltair Ave
11950 Idaho Ave
1929 Beloit Ave
2114 Colby Ave
1817 Corinth Ave
1658 Colby Ave
1845 Butler Ave
1744 Butler Ave
Rent Comparables
John SwartzManaging [email protected] Lic 01873487
Josh KaplanManaging [email protected] Lic 01934177
Transwestern601 S. Figueroa St, Suite 3650Los Angeles, CA 90017213.624.5700transwestern.com
The information provided herein was obtained from sources believed reliable; however, Transwestern makes no guarantees, warranties or representations as to the completeness of accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions, prior to sale or lease, or withdrawl without notice. Copyright © 2020 Transwestern. CA Lic 01263636.
Troy LuceroSenior [email protected] Lic 02015701
Los Angeles
Multifamily
Investment
Group