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Offering Memorandum
3006 South CloverdaleLos Angeles, CA 90016
LOCATION OVERVIEW
Property Overview
PROPERTY SUMMARY
Property Description Property DetailsPhotographyNearby Developments
FINANCIALS
Financial OverviewRent RollRental CompsSales CompsLoan Quote
3006 South CloverdaleLos Angeles, CA 90016
Property Overview
All tenants are on a new 20 year HAP contract.
Rent is paid directly by the Los Angeles Housing Authority.
Building is one block West of Redondo Blvd, just north of Jefferson Blvd
Property is within 1 mile of two separate subway stations
8 uncovered parking spaces. No seismic retrofit necessary!
Property Summary
PROPERTY DESCRIPTION
3006 S Cloverdale, this 8 unit apartment is located just north of Jefferson Blvd and west of Redondo Blvd in the neighborhood of West Adams, and a short distance to the burgeoning scene filled with new developments as well as shops, restaurants, and public transportation. The property features 5,089 rentable square feet on a 8,021 square foot lot that is zoned LARD1.5. The building consists of all one-bedroom apartments that come with one parking spot each. The building recently signed a 20 year HAP contract, which means that rent is paid monthly by the Los Angeles Housing Authority.
PROPERTY DETAILS
8Units
S Redondo & W Jefferson Major Intersection
Los Angles
Market
5043-025-008 APN
LARD1.5Zoning Type
5,089 Sq FtBuilding Sq Ft
8,021 Sq FtLot Size Sq Ft
3006 S Cloverdale
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Nearby Developments
5135 W. Adams Blvd (Under construction) Single parcel, 3 story building, 10 residential units
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4120 W. Jefferson Blvd(In development) Currently a vacant lot, proposed one story, 3,500 SF office building
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5124 W. Adams Blvd (Under construction) 3 story building, 25 residential units, ground floor commercial space
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5170 W. Adams BlvdProposed 43-room hotel, three story structure, ground floor restaurant and bar
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5263 W. Adams Blvd (Under construction) 3 story building, 14 residential units, 2,000+ SF of ground floor retail and single level basement parking
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3321 La Cienega BlvdProposed 1,200 residential units, 100,000 SF of retail, and 30-story tower
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5301 W. Adams Blvd (Under construction) Single parcel, 3 story building, 10 residential units
4 5245 W. Adams Blvd (Under construction) 3 story building, 60 residential units with ground floor retail space and two levels of basement parking
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4011 Exposition Blvd Proposed four small lot homes- 4 stories in height, three bedrooms, two-car garages, roof decks
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Financial Overview $1,850,000
Financials
Investment Summary Annualized Financials
Income
Price: $1,850,000
Down Payment: 36% $675,000
Number of Units: 8
Price Per Unit: $231,250
Current GRM: 13.10
Market GRM: 12.01
Proposed Financing: $1,175,000
Loan Rate: 4.50% fixed for 5 yrs
Loan Duration: 30 yrs
Total Scheduled Rent: $11,688
Laundry Income: $80
Other Income (storage): $0
Monthly Scheduled Gross Income: $11,768
Annual Scheduled Gross Income: $141,216
Total Pro Forma Rent: $12,760
Laundry Income: $80
Other Income (storage): $0
Monthly Pro Forma Gross Income: $12,840
Annual Pro Forma Gross Income: $154,080
Current Rents
Scheduled Gross Income: $141,216
Vacancy Allowance: $4,236 3%
Gross Operating Income: $136,980
Less Expenses: $47,981 34%
Net Operating Income: $88,998
Less Loan Payment: -$71,443
Pre-Tax Cash Flow: $17,555 2.60%
Plus Principal Reduction: $18,955
Total Return Before Taxes: $36,511 5.41%
# of Units Bed/Baths
8 1 + 1
Market Rents
$154,080
$4,622 3%
$149,458
$47,981 31%
$101,476
-$71,443
$30,034 4.45%
$18,955
$48,989 7.26%
Monthly Rent/Unit
$1438-$1484
Current Rents
Monthly Income
$11,688
Pro Forma Rents
Monthly Rent/Unit
$1,595
Monthly Income
$12,760
Year Built: 1938
Approx. Lot Size: 8,021
Approx. Bldg. Sq. Ft. 5,089
Price per Sq. Ft. $364
Current CAP: 4.81%
Market CAP: 5.49%
Zoning: LARD1.5
Expenses*
Taxes (new): 1.25% $23,125
Insurance: $2,036
Utilities: $9,924
Repairs/Maintenance: $5,649
Professional Mgmt: $5,649
Misc: $1,600
Total Expenses: $47,981
Per Sq. Ft: $9.43
Per Unit: $5,998
*EXPENSES ARE ESTIMATED
Financials
Rent Roll
Unit # Unit Type Current Rent Market Rent Move-in Date Size (sf)
3006 1 + 1 $1,438 $1,595
3006 1/2 1 + 1 $1,438 $1,595
3008 1 + 1 $1,438 $1,595
3008 1/2 1 + 1 $1,438 $1,595
3010 1 + 1 $1,484 $1,595
3010 1/2 1 + 1 $1,484 $1,595
3012 1 + 1 $1,484 $1,595
3012 1/2 1 + 1 $1,484 $1,595
Laundry $80
Other Income $0
Monthly Total: $11,768 $12,840
Annual Total: $141,216 $154,080
Rent Roll As Of 12/21/18
3006 S Cloverdale—Rental Comps3006 S CloverdaleProjected Rent: $1,437Unit Type: 1+1
2614 S Cochran AveRent: $1,595Unit Type: 1+1
2908 S Orange DrRent: $1,895Unit Type: 1+1
5118 W 20th StRent: $1,750Unit Type: 1+1
4616 Rodeo LnRent: $1,595 | $1,795Unit Type: 1+1 | 2+1
4928 W Martin Luther King Jr BlvdRent: $1,634-$2,127 | $1,997-$2,453Unit Type: 1+1 | 2+1
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3006 S Cloverdale
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3006 S Cloverdale—Sales Comps
3006 S CloverdaleSale Price: $1,850,000COE Date: -# of Units: 8Price Per Foot: $364Building Sq Ft: 5,089Price/unit: $231,250Year Built: 1948Unit Mix: (8) 1+1
6030 Cadillac AveSale Price: $1,1847,000COE Date: 7/24/18# of Units: 9Price Per Foot: $247.02Building Sq Ft: 7,4777Price/unit: 205,222Year Built: 1961Unit Mix: (4) 1+1 | (5) 2+2
4009 S Muirfield RdCOE Date: 9/25/18# of Units: 10Price Per Foot: $212.46 Building Sq Ft: 9,884Price/unit: $210,000Year Built: 1948Unit Mix: (6) 1+1 | (4) (2+1)
5079 W 21st StSale Price: $1,230,000COE Date: 5/1/18# of Units: 5Price Per Foot: $299Building Sq Ft: 4,113Price/unit: $246,000Year Built: 1947Unit Mix: (3) 1+1 | (2) 2+1
4032 Stevely AveSale Price: $1,995,000COE Date: 4/24/18# of Units: 9Price Per Foot: $204.70 Building Sq Ft: 9,746Price/unit: $221,667Year Built: 1958Unit Mix: (2) 1+1 | (7) 2+2
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3006 S Cloverdale
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Financials Loan Quote
Loan Amount: $1,175,000 $1,175,000
Maximum LTV: 65% 65%
Current Rate: 4.50% 4.50%
Monthly Payment: $14,021 $14,021
Adjustable Portion: 2.50 > 6-month LIBOR 2.50 > 6-month LIBOR
Loan Term: 30 years 30 years
Amortization: 30 years 30 years
Floor: 4.40% 4.40%
Ceiling: 9.50% 9.50%
Recourse: Full Full
Prepayment: 3,3,2,2,1 4,3,3,2,2,1
3rd Party Deposit (Est): $3,950 $3,950
Closing Costs (Est): $1,500 $1,500
Rate Lock:
Loan Origination Fee:
At application for 60 days -1.0% refundable deposit
1.0% + $500 processing fee
At application for 60 days -1.0% refundable deposit
1.0% + $500 processing fee
Brian WeisbergTelephone: (818) 222-2800 x203Facsimile: (818) 222-8516Email: [email protected]
Commercial Realty Consultants23586 Calabasas RoadSuite 100Calabasas, California 91302
For more information, please contact:
Kenny [email protected] 01090251
Max [email protected] 02054048—We sweat the details so you don’t have to.
Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number DRE 01991628. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.
