703 E Providencia Ave OM · 2017-08-24 · property management and additional upgrades. The property is currently master metered for gas, water and electricity. The Providencia Apartments

Providencia Avenue

Off ering Memorandum

703 East

Burbank, California

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confi dential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the writt en consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifi ed information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected fi nancial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the fi nancial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verifi ed, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matt ers aand makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affi liated with, sponsored by, or endorsed by any commercial tenant or lessee identifi ed in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affi liation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affi liates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

All property showings are by appointment only.

Please consult your Marcus & Millichap agent for more details.

LISTED BY

Barry Gordon

Senior Vice PresidentMulti-Family InvestmentsCA BRE License #00925711213.943.1820 offi ce213.507.1099 [email protected]

Justin Forman

Senior AssociateMulti-Family InvestmentsCA BRE License #01878121213.943.1862 offi ce714.697.6466 [email protected]

Marcus & Millichap515 S. Flower StreetSuite 500Los Angeles, CA 91106213.943.1800213.943.1810 faxmarcusmillichap.com

Table of Contents

1 Property Overview

2 Location Overview

3 Financial Summary

4 Rent & Sales Comparables

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EastEastProvidenciaProvidenciaAvenueAvenue

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PropertyOverview

One

Marcus & Millichap has exclusively listed for sale the non-rent controlled Providencia Apartment Building in a prime Burbank location above Glenoaks Boulevard.

Built in 1924 and renovated this year, this architecturally charming, wood frame and stucco building consists of three studio units and seven one-bedroom units. The property also includes fi ve individual garages currently rented as storage units, a laundry room and an att ractively landscaped private outdoor common area for tenants.

Renovations include new copper plumbing, new drains, new windows, exterior light fi xtures, wood façade, new paint and landscaping. The roof appears to be in excellent condition.

Each kitchen has been upgraded with white quartz kitchen countertops, Shaker cabinets, vinyl fl ooring, new light fi xtures and all new appliances. The bathrooms

have been updated with new sink tops, toilets and tile walls. The units feature nine-foot ceilings.

Off ered at a 4.2 percent cap rate on current rents, leveraged fi nancing is most likely available and there may be additional rental upside through professional property management and additional upgrades. The property is currently master metered for gas, water and electricity.

The Providencia Apartments is close to the Burbank Town Center and the Media Center Mall. The property is also minutes away from Downtown Los Angeles, Glendale and Pasadena. The major media and entertainment employment centers headquartered in Burbank include The Walt Disney Company, Warner Bros. Entertainment, ABC Studios, ABC Family, Nickelodeon, NBC, Universal Studios, the Bob Hope Airport, and Marvel Studios.

Property Summary

LAND INFORMATIONProperty Address 703 East Providencia Avenue

Burbank, CA 91501Parcel Size SF 6,284APN 2455-001-018

BUILDING INFORMATIONNumber of Units 10Year Built/Renovated 1924/2017Number of Buildings 1Number of Stories 2Building SF 6,686Parking 5 Garages

UTILITIESWater MasterElectric MasterGas Master

CONSTRUCTIONFoundation ConcreteFraming StuccoRoof FlatHVAC Wall/Floor

Property Overview | 703 East Providencia Avenue

7This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved. (Activity ID: Y0140781)

Investment Highlights

Prime Burbank Location Above Glenoaks Boulevard

Copper Plumbing

Major Interior and Exterior Renovations in 2017

Non-Rent Controlled

4.2 Percent Cap Rate on Current Rents

703 East Providencia Avenue | Property Overview

8

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved. (Activity ID: Y0140781)

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Plat Map


703 East Providencia Avenue | Property Overview

1010

11

INTERIOR

One Bedroom

One Bedroom

12

Studio

Studio

Studio

Property Overview | 703 East Providencia Avenue

13

East

Pro

vide

ncia

Ave

nue

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AERIAL

South 7th Street

770033


Glendale

Downtown Burbank

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Location Overview

TwoBurbank City Hall

The City of Burbank has long been perceived by investors as one of the most solid, stable and desirable rental markets in Southern California. Apartments are not regulated by rent control and the city off ers a wide range of good schools and popular dining, shopping and entertainment centers.

Burbank, oft en referred to as the “Media Capital of the World”, is located twelve miles northwest of Downtown Los Angeles and only a few miles from North Hollywood, Studio City, Glendale, Eagle Rock, Highland Park and Pasadena.

The major employers in Burbank include The Walt Disney Company, Warner Brothers, Providence Saint Joseph Medical Center, Bob Hope Airport, the American Broadcasting Company, Burbank Unifi ed School District, City of Burbank, Foto-Kem Industries and Yahoo!

Burbank is now home to the newest and largest IKEA store in the U.S. with 456,000 square feet of retail space.

BURBANKThe property is located approximately fi ve minutes from the newly renovated Burbank Town Center. The Burbank Town Center off ers a choice of more than 170 retail stores, restaurants and entertainment ventures.

Warner Bros. Entertainment, Inc.

Bob Hope Airport

Largest IKEA in the U.S.

Burbank is built for young and old

residents alike. If you want to star in a great

life, then consider living in this colorful

California community where plan B is even

better than plan A.

- Movers.Com

1818

Bob's Big Boy

Providence St. Joseph Costco

Nickelodeon Animation

Granville

The Walt Disney Company

Porto's Bakery & Cafe

American Broadcasting Company

Location Overview | 703 East Providencia Avenue

19

NORTHHOLLY-WOOD

5.4 MILES BURBANK

DTLA12 MILES

PASADENA11.2 MILES

LACANADA

9 MILES

ALHAMBRA 14.9 MILES

DOWNTOWNGLENDALE

5.6 MILES

BEVERLYHILLS

15.5 MILES

Regional Map

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10

5

2

101

110

K

703


CULVERCITY

22.9 MILES

SANTAMONICA31.8 MILES

WESTHOLLY-WOOD

9.6 MILES2

2020

DOWNTOWNGLENDALE

5.6 MILES

BURBANK

Local, Retail & Employer Map

703


Verdugo Verdugo ParkPark



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Recent Neighborhood Home Sales

703 East Providencia Avenue1 815 East Providencia Avenue | Sold for $915,000 on 7/06/172 915 East Cedar Avenue | Sold for $900,000 on 6/15/173 830 East Angeleno Avenue | Sold for $800,000 on 6/14/174 807 East Angeleno Avenue | Sold for $915,000 on 6/26/175 1039 East Providencia Avenue | Sold for $815,000 on 6/28/176 815 East Valencia Avenue | Sold for $813,000 on 5/16/177 1000 Via Carmelita | Sold for $1.695M on 7/31/178 1225 Alta Paseo | Sold for $1.199M on 7/20/17

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INCOME AND EMPLOYMENT

In 2016, the median household income for Burbank geography was $50,812, compare this to the US average which is currently $54,505. The median household income for Burbank has changed by 33.81% since 2000. It is estimated that the median household income will be $61,328 fi ve years from now, which represents a change of 20.70% from the current year. The current year per capita income in Burbank is $31,041, compare this to the US average, which is $29,962. The current year average household income in Burbank is $76,990, compare this to the US average which is $78,425.

In 2016, there were 18,897 employees in Burbank, this is also known as the daytime population. The 2000 Census revealed that 69.68% of employees are employed in white-collar occupations in this Burbank, and 30.06% are employed in blue-collar occupations. In 2016, unemployment there was 7.39%. In 2000, the average time traveled to work was 29.00 minutes.

RACE AND ETHNICITY

The current year racial makeup of Burbank is as follows: 76.81% White, 1.97% Black, 0.06% Native American and 10.86% Asian/Pacifi c Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacifi c Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 14.59% of the current year population in Burbank. Compare this to the US average of 17.65%.

POPULATION AND HOUSING

In 2016, the population in Burbank was 40,263. The population has changed by 12.98% since 2000. It is estimated that the population will be 41,262.00 fi ve years from now, which represents a change of 2.48% from the current year. The current population is 47.76% male and 52.24% female. The median age of Burbank is 40.36, compare this to the US average which is 37.68. The population density there is 12,813.80 people per square mile.

The median housing value in Burbank was $618,313 in 2016, compare this to the US average of $187,181. In 2000, there were 3,889 owner occupied housing units in Burbank and there were 10,309 renter occupied housing units there. The median rent at the time was $717.

Demographics



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Financial Summary

Three

Rent Roll

UNIT UNIT TYPE UNIT SIZE (SF)* CURRENT RENT RENT/SF MARKET RENT RENT/SF

101 1 + 1 620 $1,595 $2.57 $1,750 $2.82

102 1 + 1 620 $1,595 $2.57 $1,750 $2.82

103 Studio 440 $1,470 $3.34 $1,475 $3.35

104 1 + 1 620 $1,595 $2.57 $1,750 $2.82

105 1 + 1 620 $1,500 $2.42 $1,750 $2.82

201 1 + 1 620 $1,595 $2.57 $1,750 $2.82

202 1 + 1 620 $1,495 $2.41 $1,750 $2.82

203 Studio 440 $1,395 $3.17 $1,475 $3.35

204 1 + 1 620 $1,595 $2.57 $1,750 $2.82

205 Studio 500 $1,395 $2.79 $1,490 $2.98

NO. OF UNITS UNIT TYPE UNIT SIZE (SF) AVG. RENT CURRENT MONTHLY

INCOME MARKET RENT MARKET MONTHLY INCOME

2 Studio 440 $1,433 $2,865 $1,475 $2,950

1 Studio 500 $1,395 $1,395 $1,490 $1,490

7 1 + 1 620 $1,567 $10,970 $1,750 $12,250

10 $15,230 $16,690

*Unit square footage was estimated

703 East Providencia Avenue | Financial Summary

26

Financial Analysis

FINANCIAL INDICATORSPrice: $2,850,000 Down: $1,111,500 (39%) $/Unit: $285,000$/SF: $426.26$/Lot SF: $453.39Current CAP: 4.2%Current GRM: 15.59Market CAP: 4.78%Market GRM: 14.23

PROPERTY INFORMATIONOwnership: Fee SimpleNo. of Units: 10Yr. Built/Renovated: 1924/2017Building SF: 6,686Lot SF: 6,284

PROPOSED FINANCINGLoan Amount: $1,738,500Interest Rate/Fixed: 3.75%/5 yearsTerm 30

OPERATING INCOME CURRENT MARKET

Gross Potential Rental Income $182,760 $200,280

Laundry Income (est) $1,200 (est) $1,200

Garage Income (act) $7,500 (act) $7,500

Rubs (act) $2,820 (act) $3,180

Gross Potential Income $194,280 $212,160

Less: Vacancy 3.00% ($5,828) ($6,365)

Eff ective Gross Income $188,452 $205,795

Less: Expenses ($68,656) ($69,523)

Net Operating Income $119,796 $136,272Less: Debt Service 1.24 ($96,615) 1.39 ($98,199)

Pre-Tax Cash Flow 2.09% $23,181 3.52% $38,073

OPERATING EXPENSES (ESTIMATED) CURRENT MARKET

Real Estate Taxes (New) 1.20% $34,200 $34,200

Insurance $0.35/SF $2,340 $2,340

Utilities $109/u/month $13,422 $13,422

Trash (act) $1,071 $1,071

Repairs & Maintenance $500/unit $5,000 $5,000

Landscape $100/month $1,200 $1,200

Professional Management 5% of EGI $9,423 $10,290

Misc. & Reserves $200/unit $2,000 $2,000

Total Expenses $68,656 $69,523

Expenses/Unit $6,866 $6,952

Expenses/SF $10.27 $10.40

% of EGI 36.43% 33.78%

Financial Summary | 703 East Providencia Avenue


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Rent & Sales Comparables

Four

2

4

5

703 East Providencia Avenue1 3120 Riverside Drive2 1731 Rogers Place3 2234 North Ontario Street4 700 South 6th Street5 678-680 West Glenoaks Boulevard6 1519 North Hollywood Way7 923 North Maple Street8 403 West Glenoaks Boulevard9 1851 Riverside Drive10 1114 Brand Boulevard

Rent Comps Map

1

3

6

789

10

30

Rent Comparables

AVERAGE RENTS - STUDIO & ONE BEDROOM

Rent Comparables | 703 East Providencia Avenue


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Subject 703 EAST PROVIDENCIA AVENUEBURBANK, CA 91501

Year Built/Renovated: 1924/2017No. of Units: 10

Unit Type Unit SF Avg. Rent Rent/SFStudio 440 $1,433 $3.25 Studio 500 $1,395 $2.79 1 + 1 620 $1,567 $2.52

1 3120 RIVERSIDE DRIVEBURBANK, CA 91505

Year Built: 1963No. of Units: 13

Unit Type Unit SF Avg. Rent Rent/SF1 + 1 750 $1,850 $2.47

2 1731 ROGERS PLACEBURBANK, CA 91504



Rent Comparables

Note: Unit was fully renovated. Note: Unit was fully renovated.

703 East Providencia Avenue | Rent Comparables

32

3 2234 NORTH ONTARIO STREETBURBANK, CA 91504


Unit Type Unit SF Avg. Rent Rent/SF1 + 1 N/A $1,995 N/A

5 678-680 WEST GLENOAKS BOULEVARDGLENDALE, CA 91202



4 700 SOUTH 6TH STREETBURBANK, CA 91501



Note: Unit was fully renovated. Note: Unit was partially renovated. Note: Unit was fully renovated.



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6 1519 NORTH HOLLYWOOD WAYBURBANK, CA 91505



7 923 NORTH MAPLE STREETBURBANK, CA 91505


Unit Type Unit SF Avg. Rent Rent/SFStudio N/A $1,500 N/A

8 403 WEST GLENOAKS BOULEVARDGLENDALE, CA 91202


Unit Type Unit SF Avg. Rent Rent/SFStudio 350 $1,475 $4.21

Rent Comparables

Note: Unit was fully renovated.


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9 1851 RIVERSIDE DRIVEGLENDALE, CA 91201



10 1114 BRAND BOULEVARDGLENDALE, CA 91202



Note: Unit was fully renovated. Note: Unit was fully renovated.



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703 East Providencia Avenue1 700 South 6th Street2 2005 Peyton Avenue3 2050 5th Street4 248 North Cordova Avenue

Sales Comps Map

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4

11113

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Sales Comparables

AVERAGE PRICE PER SF

AVERAGE PRICE PER UNIT

AVERAGE CAP RATE

AVERAGE GRM



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Subject 703 EAST PROVIDENCIA AVENUEBURBANK, CA 91501

No. of Units: 10Year Buil/Renovated: 1924/2017Off ering Price: $2,850,000$/Unit: $285,000$/SF: $426.26Cap Rate: 4.2%GRM: 15.59Close of Escrow: N/ABuilding Size: 6,686 SFLot Size/SF: 6,284

No. Unit Unit Type3 Studio7 1 + 1

1 700 SOUTH 6TH STREETBURBANK, CA 91501

No. of Units: 34Year Built: 1958Sale Price: $9,750,000$/Unit: $286,764$/SF: $469.47Cap Rate: 3.96%GRM: 14.87Close of Escrow: 6/30/2017Building Size: 20,768 SFLot Size/SF: 18,696

No. Unit Unit Type26 1 + 1

Sales Comparables

Note: Building was partially renovated.

2 2005 PEYTON AVENUEBURBANK, CA 91504

No. of Units: 5Year Built: 1935Sale Price: $1,475,000$/Unit: $295,000$/SF: $461.95Cap Rate: N/AGRM: N/AClose of Escrow: 8/17/2016Building Size: 3,193 SFLot Size/SF: 14,349

No. Unit Unit Type2 Studio2 1 + 11 2 + 1

Note: Building was fully renovated in 2017.


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4 248 NORTH CORDOVA AVENUEBURBANK, CA 91505


No. Unit Unit Type2 Studio2 1 + 11 2 + 2

3 2050 5TH STREETGLENDALE, CA 91201


No. Unit Unit Type8 1 + 12 2 + 1

Note: 30% expenses of EGI was used to estimate the cap rate due to rents not being far below market and the building being fully renovated.



39

703

Barry Gordon

Senior Vice PresidentMulti-Family InvestmentsCA BRE License #00925711213.943.1820 offi ce213.507.1099 [email protected]

Justin Forman

Senior AssociateMulti-Family InvestmentsCA BRE License #01878121213.943.1862 offi ce714.697.6466 [email protected]

Marcus & Millichap515 S. Flower StreetSuite 500Los Angeles, CA 91106213.943.1800213.943.1810 faxmarcusmillichap.com

Providencia AvenueEastBurbank, California

LISTED BY

Documents

703 E Providencia Ave OM · 2017-08-24 · property management and additional upgrades. The property is currently master metered for gas, water and electricity. The Providencia Apartments