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354-356 4th AvenueVenice, CA 90291Marketing Package
Table of Contents
Neighborhood Overview
Nearby Developments
Local Hotspots
Property Description & Highlights
Financials
Set-Up
Rent Roll
Comparables
Rental Comparables
Sales Comparables We sweat the details,so you don’t have to.
354-356 4th Ave.Marketing Package
NeighborhoodOverview
Introducing:
Venice, CA A Trendsetting and Artistic Beachside Community
354-356 4th Avenue is located in the heart of Venice, an artistic beachside community
that has experienced a renaissance over the past decade. With ocean exposure, a
boardwalk that stretches over two miles, stylish storefronts, and trendsetting
restaurants, Venice is among the city’s hottest neighborhoods. Nestled along a pristine
stretch of the Pacific Ocean, Venice embodies the casual coolness of a beach
exploding job markets such as Downtown Santa Monica, Silicon Beach, Westwood and
Culver City, Venice residents are young professionals and families who hold high-income
positions in the entertainment industry, technology industry and various business startups.
Popularized on the big screen, Venice represents Southern California living around the
world. One of the city’s defining features is Abbot Kinney Boulevard. Dubbed as “the
coolest block in America” by GQ, this walkable palm-tree lined street features a wide
variety of international retail stores, trendy restaurants and popular nightlife
destinations. Locals and international tourists stroll along this vibrant stretch of the
city for a memorable experience.
persona of a small beach town with luxurious and metropolitan amenities. With
excellent beachfront location, easy access to exploding job markets and a lively
beachside neighborhood, Venice is an ever-growing Los Angeles sub-market that is
perfect for a multi-family investor.
Local HotspotsAbbot Kinney Boulevard
Rose Avenue
Main Street
Venice Canals
Venice Beach
Erewhon
Whole Foods
Gjelina
MTN
Rose Cafe
Golds Gym
Paradiso Crossfit
High Rooftop Lounge
Waterfront
Local Hotspots Map
6855 N. Figueroa St.
Heritage Square Portfolio
VeniceBeach
RoseAvenue
AbbotKinney
MainStreet
VeniceCanals
354 4th Avenue
PropertyOverview
Property Description
Number of Units - 15
Year Built - 1964
Building Size - 11,958 SF
Lot Size - 11,528 SF
Zoning Type - LAR4
Submarket - Venice
Cross streets
4th Avenue & Rose Avenue
APN
4240-008-022
Price - $9,400,000
Price Per SF - $786
Price Per Unit- $626,667
354-356 4th Avenue presents investors with the opportunity to acquirea phenomenal multi-family building in one of Los Angeles’ premierbeach communities with significant upside still to be captured.
The almost 12,000 sq. ft. two-story building sits on a large corner lot;and distinguishes itself from other properties with smooth stucco facadecomplemented by a prominent mural commissioned by renowned artistSpencer Mar Gilburt. The subject property is comprised of (1) three-bedroom and one-bath townhouse, (1) two-bedroom and one-bathtownhouse, (2) three-bedroom and two-bath units, (9) two-bedroomand one-bath units and (2) one-bedroom and one-bath units. 7 out of15 units have been remodeled to include quartz countertops, stainlesssteel Frigidaire appliances, soft-close custom cabinets, LED lightingpackage, copper plumbing, and a custom black window package.Additionally, 354-356 4th Avenue features secured entry,approximately 24 covered parking spaces and a new roof. Remodeledunits are achieving market rents, which present a significant value-addopportunity to investors, as current rents are approximately 48% belowmarket value.
Kenny Stevens Team is pleased to present 354-356 4th Avenue, a 15-unit multi-family investment property located in the artistic andtrendsetting beachside community of Venice. Located east of PacificAvenue and south of Rose Avenue, the subject property is within walkingdistance from Venice Beach. Additionally, residents benefit from itsproximity to charming cafes, trendsetting restaurants and luxuryboutiques along Abbot Kinney Boulevard, Rose Avenue and Main Street.
Property Overview | Photography
Property Overview | Photography
Property Overview | Drone Photography
Property Overview | Drone Photography
Property Overview | Drone Photography
354-356 4th Avenue
Abbot Kinney Boulevard Venice Beach
FinancialsApproximate Building Size:
Approximate Age:
Approximate Lot Size:
1964
Zoning:
11,528 SF
11,958 SF
LAR4
Market CAP:
Price Per Sq Ft: $786
Current CAP: 3.00%
5.30%
Investment Summary
Price:
Down Payment: 53% $5,000,000
Number of Units: 15
Price Per Unit: $626,667
Current GRM: 20.26
Potential GRM: 13.71
Proposed Financing: $4,400,000
Loan Rate: 3.60% (3 Year I.O.)
Loan Duration: 30 Years
$9,400,000
Annualized Operating Data
Current Rents
Scheduled Gross Income: $464,028 $685,800
Vacancy Allowance: $11,061 3%
Gross Operating Income: $452,427
Less Expenses: $170,009 37%
Net Operating Income: $282,418
Less Loan Payment: -$158,400
Pre-Tax Cash Flow: $124,018 2.48%
Plus Principal Reduction: $0
Total Return Before Taxes: $124,018 2.48%
Market Rents
$17,145 3%
$668,655
$170,009 25%
$498,646
$340,246
-$158,400
6.80%
$0
$340,246 6.80%Income
# of Units Bed/Baths Monthly Rent/Unit
$1,605 - $4,499 $4,500
Monthly Rent/Unit
Current Rents Potential Rents
Monthly Income
$6,104 $9,000
1 3 + 1 TH
2 3 + 2
$1,604 $4,500$1,604 $4,500
$1,465 $3,850$1,465 $7,700
9 2 + 1 $1,311 - $3,800 $3,800$25,230 $34,200
2 1 + 1 $1,366 - $2,700 $2,700$4,066 $5,400
Total Scheduled Rent: $38,469 $56,950
Laundry Income: $200 $200
Monthly Scheduled Gross Income: $38,669 $57,150
Annual Scheduled Gross Income: $464,028 $685,800
Monthly Income
354-356 4th Avenue
Expenses*
Taxes (new): 1.25% $117,500
Insurance: $4,783
Utilities: $11,958
Repairs/Maintenance: $13,921
Professional Mgmt: $18,097
Total Expenses: $170,009
Per SF: $14.22
Per Unit: $11,334
Misc: $3,750
EXPENSES ARE ESTIMATED
1 2 + 1 TH
Rent Roll354-356 4th Avenue
Rent Roll
2
3
4
5
6
7
8
9
10
11
12
13
14
15
1
Unit #
2 + 1 TH
2 + 1
2 + 1
2 + 1
1 + 1
3 + 2
2 + 1
2 + 1
2 + 1
2 + 1
1 + 1
3 + 2
2 + 1
2 + 1
3 + 1 TH
Unit Type
$1,465
$3,550
$2,048
$3,700
$2,700
$1,605
$3,750
$3,774
$1,311
$1,878
$1,366
$4,499
$1,419
$3,800
$1,604
Current Rent
$3,850
$3,800 01/01/2020
$3,800
$3,800
$2,700 02/01/2020
$4,500
$3,800
$3,800
$3,800
$3,800
$2,700
$4,500
$3,800
$3,800
$4,500
Market Rent
Renovated
Renovated
Renovated
Renovated
Renovated
Renovated
Renovated
Notes
06/01/1995
02/15/2010
09/01/2019
03/01/2005
11/10/2019
01/26/2019
11/01/2002
12/15/2012
09/18/2012
08/17/2018
03/04/2000
03/08/2019
05/15/1995
Move-in Date
Laundry Income: $200 $200
Monthly Total: $38,669 $57,150
Monthly Total: $464,028 $685,800
Loan Amount
Maximum LTV
Monthly Payment (I.O.)
Monthly Payment (Amort.)
Adjustable Portion
Loan Term
Amortization
Floor
Ceiling
Recourse
Prepayment
9.50%
$4,050,000
70%
$12,150 $12,319
N/A
2.50 > 6-month LIBOR
30 Years
30 Years
3.60%
Full
3,3,2,2,1
3 Year Interest Only
$4,050,000
70%
Current Rate 3.60% 3.65%
$20,883
2.50 > 6-month LIBOR
30 Years
30 Years
3.65%
9.50%
Full
4,3,3,2,2,1
3rd Party Deposit (Est) $5,950 $5,950
Closing Cost (Est) $1,000 $1,000
Loan Origination Fee 1% + $500 processing fee 1% + $500 processing fee
Rate Lock Rate lock at applicationfor 60 days - refundableat close
Rate lock at applicationfor 60 days - refundableat close
5 Year Interest Only
-
$4,300,000
-
3.425%
$19,129
2.75 > 5-Year CMT
10 Years
30 Years
3.425%
8.425%
Full
3,3,2,1
$4,500
$1,000
1% + $500 processing fee
Provided by: Commercial Realty ConsultantsBrian WeisbergPhone: (818) 222-8516Email: [email protected]
At application for 60 days
5 Year Fixed (Amortized)
-
$4,100,000
-
3.825%
$19,163
2.75 > 5-Year CMT
10 Years
30 Years
3.825%
8.825%
Full
4,3,3,2,2,1
$4,500
$1,000
1% + $500 processing fee
At application for 60 days
7 Year Fixed (Amortized)
Financing Options | Interest Only & Amortized
Comparables
Comparables | Sales Comps
Address
COE
Sales
Price
Units
Price/
Unit
Bldg.
Sq. Ft.
Price
Per Foot
Year
Built
Unit
Mix
354-3564th Ave.
Subject Property
$9,400,000
15 Units
$626,667
11,528 SF
$786
1964
(1) 3+1 TH, (1) 2+1 TH(2) 3+2, (9) 2+1,(2) 1+1
$6,995,000
19Wavecrest Ave.
On Market
10 Units
$699,500
7,281 SF
$960.72
1912
(3) 2+1, (7) 1+1
634Westminster Ave.
On Market
$3,250,000
5 Units
$650,000
3,716 SF
$874.60
1960
(1) 3+2, (3) 2+1,(1) Studio
On Market
$7,650,000
12 Units
$637,500
10,428 SF
$733.60
1971
(3) 3+2, (3) 2+2,(3) 1+1, (3) Studios
2504Pacific Ave.
18Sunset Ave.
10/17/2019
$3,620,000
6 Units
$603,000
4,560 SF
$793.86
1973
(1) 2+2, (5) 1+1
511Rialto Ave.
03/08/2019
$4,900,000
9 Units
$544,444
7,998 SF
$612.65
1970
NotesInferior UnitMix
Inferior UnitMix
Ample Parking24 Spaces
Inferior Rehab No Rehab
(4) 2+1, (5) 1+1
Comparables Rental Comps
1) 630 N. Grand Avenue
Rent: $2,395
Unit Type: 2 Bdrm. & 2 Bath
2) 1219 Boston Street
Rent: $2,850
Unit Type: 2 Bdrm. & 2 BathSubject Property(s)
900 W. College St.Current Rent:
(1) 4+3.5: $3,600
(1) 3+1.5: $447 - $2,300
(6) 2+1: $2,404
41 3
4186-4190 S. Western Ave.
1
234
1014 & 1018 Mooney Dr.
1
2
34
5
Sales Comparables MapSubject Property: 354-356 4th Avenue
SalesPrice
$9,400,000
$3,250,000
$6,995,000
$4,900,000
$3,620,000
$7,650,000
Units
15 Units
5 Units
10 Units
9 Units
6 Units
12 Units
COE
Subject Property
On Market
On Market
03/08/2019
10/17/2019
On Market
Price PerUnit
$626,667
$650,000
$699,500
$544,444
$603,000
$637,500
Price PerFoot
$612.65
$786
$793.86
$733.60
$874.60
$960.72
Bldg. SF
11,528 SF
3,716 SF
7,998 SF
4,560 SF
10,428 SF
7,281 SF
YearBuilt
1964
1960
1970
1973
1971
1912
Address
354-356 4th Ave.
2) 634 Westminster Ave.
5) 511 Rialto Ave.
4) 18 Sunset Ave.
3) 2504 Pacific Ave.
1) 19 Wavecrest Ave.
12 3
4
5
354-356 4th Ave.
Comparables Rental Comps
Subject Property(s)
354-356 4th Ave.Current Rent:
(1) 3+2: $1,605 - $4,499
(1) 3+1 TH: $1,604
(1) 2+1 TH: $1,465
(9) 2+1: $1,311 - $3,800
(2) 1+1: $1,366 - $2,700
1) 240 Hampton Dr.
3) 510 Pacific Ave.
Rent: $2,800
Unit Type: 1 Bdrm. & 1.5 Bath
Rent: $3,995
Unit Type: 3 Bdrm. & 2 Bath
2) 225 3rd Ave.
Rent: $3,700
Unit Type: 2 Bdrm. & 1 Bath
4) 421 Sunset Ave.
Rent: $4,995
Unit Type: 3 Bdrm. + 2.5 Bath
Address
4) 421 Sunset Ave.
1) 240 Hampton Dr.
Rental Comparables MapSubject Property: 354-356 4th Ave.
3) 510 Pacific Ave.
Rent
$2,800
$4,995
$3,995
$3,700
SquareFootage
Approximately 500 SF
Approximately 1,800 SF
Approximately 950 SF
Approximately 900 SF
Unit Mix
1 Bdrm. & 1.5 Bath
3 Bdrm. & 2.5 Bath
3 Bdrm. & 2 Bath
2 Bdrm. & 1 Bath2) 225 3rd Ave.
1
23
4
354-356 4th Ave.1
23
4
354-356 4th Ave.
We sweat the details,
so you don’t have to.We Sweat the Details,So You Don’t Have To.
If you have additional questions, please contact:
Kenny Stevens
DRE: 01090251
(310) 968-7005
