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Paul Z. Matysek, [email protected] License # 01757671
O F F E R I N G M E M O R A N D U M
EL SERENO PLAZA4 6 1 7 H U N T I N G T O N D R I V E N | L O S A N G E L E S , C A 9 0 0 3 2
EXCLUSIVELY MARKETED BY: Ken [email protected] # 01181838
Ben [email protected] # 01161688
2EL SERENO PLAZA
EXECUTIVE SUMMARY
TRAFFIC COUNTS CARS PER DAYMonterey Road 26,331
Huntington Drive N 32,486
INVESTMENT HIGHLIGHTS Highly visible corner retail property in desirable El
Sereno area of Los Angeles Brand new 10 Year lease signed with Dollar Tree Low price per SF Synergistic mix of daily needs and service tenants Low percentage of shop tenants to anchor GLA for
stability
INVESTMENT SUMMARYProperty Name El Sereno Plaza
Property Address 4617 Huntington Dr NLos Angeles, CA 90032
Property Type Strip Center
Price $3,850,000
Price/SF/Bldg $179.62
Net Operating Income (Current) $244,172
CAP Rate (Current) 6.34%
Cash on Cash Return (Current) 4.58%
Net Operating Income (Pro Forma) $255,767
CAP Rate (Pro Forma) 6.64%
Cash on Cash Return (Pro Forma) 5.15%
Occupancy 97.18%
Building Size 21,434 SF
Land Size 45,433 SF
Year Built / Renovated 1972
APN 5213-012-045
Zoning LAC4
RENT ROLL
3EL SERENO PLAZA
Suite Tenant SF % of GLARent Lease Dates
Increase Schedule Lease Type Renewal Options
Monthly PSF Annual PSF Start End
4601 Mr. Good Donut 710 3.31% $2,134 $3.01 $25,611 $36.07 2/1/2005 5/31/2016 4% annual increases Gross None
4603 A&M Water & Gift 710 3.31% $1,826 $2.57 $21,908 $30.86 11/1/2008 10/31/2015 3% annual increases Gross One 3 Year @ FMV
Note - Tenant pays $300/mo for water
4607 Family Dentistry 1,420 6.62% $2,610 $1.84 $31,314 $22.05 10/1/2000 MTM 3% annual increases Gross None
4611 California Nail Spa 710 3.31% $1,974 $2.78 $23,687 $33.36 6/1/2009 5/31/2014 4% annual increases Gross One 5 Year @ FMV
4615 VACANT (Former Metro PCS)
604 2.82% $1,812 $3.00 $21,744 $36.00 Gross
4617 Dollar Tree 16,408 76.55% $16,920 $1.03 $203,040 $12.37 4/11/2014 4/10/2024 Yrs 6-10: $18,360/mo Gross Option 1 Yrs 11-15: $19,800/moOption 2 Yrs 16-20: $21,240/mo
Note - 3 months Free Rent ($50,760)
4617 Mezzanine (Unusable) 872 4.07%
Billboard CBS Outdoor $917 $11,000 12/1/1998 12/31/2023 1/1/2019: $1,000/mo Gross None
TOTAL 21,434 100% $28,192 $338,304
TOTAL OCCUPIED 20,830 97.18%
TOTAL VACANT 604 2.82%
INCOME & EXPENSES
4EL SERENO PLAZA
OPERATING EXPENSES CURRENT PSF PRO FORMA PSFProperty Taxes 1.125% $43,313 $2.02 $43,313 $2.02
Property Insurance 0.09% $3,595 $0.17 $3,595 $0.17
Common Area Maintenance 0.42% $16,229 $0.76 $16,229 $0.76
Management 0.13% $4,946 $0.23 $4,946 $0.23
Utilities 0.21% $7,905 $0.37 $7,905 $0.37
Total Operating Expenses $75,987 $3.55 $75,987 $3.55
INCOME CURRENT PSF PRO FORMA PSFPotential Rental Income $338,304 $15.78 $338,304 $15.78
Less: Vacancy & Losses 3.00% $21,744 $1.01 $10,149 $0.47
Effective Rental Income $316,560 $14.77 $328,155 $15.31
Plus: Expense Recapture $3,600 $0.17 $3,600 $0.17
Gross Operating Income $320,160 $14.94 $331,755 $15.48
Less: Operating Expenses $75,987 $3.55 $75,987 $3.55
Net Operating Income $244,172 $11.39 $255,767 $11.93
Less: Annual Debt Service $149,755 $6.99 $149,755 $6.99
Cash Flow $94,417 $4.41 $106,012 $4.95
Cash on Cash Return 4.58% 5.15%
[1] Current Analysis uses actual vacancy and Pro Forma Analysis uses 3.00% Vacancy & Losses Factor.
LOAN INFORMATION
5EL SERENO PLAZA
EXISTING LOAN INFOPrice $3,850,000
Down Payment 53.51% $2,060,000
Loan Balance 46.49% $1,790,000
Interest Rate 6.62%
Amortization 30 Years
Loan Maturity 8/1/2016
Monthly Payment $12,480
Annual Payment $149,755
Prepayment Penalty Yield Maintenance ($300k Est.)
Lender Chase Bank (Washington Mutual)
TENANT PROFILES
6EL SERENO PLAZA
Tenant Name # of Locations Website Description
Mr. Good’s Donut 1 n/a Donut Shop
A&M Water Gift 1 n/a Water Store
Family Dentistry 1 n/a Dentist
California Nail Spa 1 n/a Nail Spa
Dollar Tree 4,000+ dollartree.com Dollar Tree is an American chain of discount variety stores that sells items for $1. A Fortune 500 company, Dollar Tree is headquartered in Chesapeake, Virginia and operates 4,900 stores throughout the 48 contiguous U.S. states and Canada. Its stores are supported by a nationwide logistics network of ten distribution centers. The company operates one dollar stores under the names of Dollar Tree and Dollar Bills. The company also operates a multi price-point variety chain under the name Deal$.
AREA OVERVIEW
Los Angeles often known by its initials L.A., is the most populous city in the U.S. state of California and the second-mostpopulous in the United States, after New York City, with a population at the 2010 United States Census of 3,792,621.It has a land areaof 469 square miles, and is located in Southern California.
The Census reported that population of 3,792,621. The population density was 7,544.6 people per square mile .The Censusreported that 3,708,020 people (97.8) lived in households, 58,186 (1.5%) lived in non-institutionalized group quarters, and 26,415(0.7%) were institutionalized.
The age distribution was 874,525 people (23.1%) under 18, 434,478 people (11.5%) from 18 to 24, 1,209,367 people (31.9%)from 25 to 44, 877,555 people (23.1%) from 45 to 64, and 396,696 people (10.5%) who were 65 or older. The median age was 34.1years. For every 100 females there were 99.2 males. For every 100 females age 18 and over, there were 97.6 males.
Los Angeles is home to people from more than 140 countries speaking 224 different identified languages. Ethnic enclaves likeChinatown, Historic Filipinotown, Koreatown, Little Armenia, Little Ethiopia, Tehrangeles, Little Tokyo, and Thai Town provide examplesof the polyglot character of Los Angeles.
The economy of Los Angeles is driven by international trade, entertainment (television, motion pictures, video games, recordedmusic), aerospace, technology, petroleum, fashion, apparel, and tourism. Los Angeles is also the largest manufacturing center in thewestern United States. The contiguous ports of Los Angeles and Long Beach together comprise the fifth-busiest port in the world andthe most significant port in the Western Hemisphere and is vital to trade within the Pacific Rim. Other significant industries includemedia production, finance, telecommunications, law, healthcare, and transportation.
The Los Angeles–Long Beach–Santa Ana metropolitan statistical area (MSA) has a gross metropolitan product (GMP) of $735.7 billion,making it the third largest economic center in the world, after the Greater Tokyo Area and the New York-Newark-Bridgeport CSA. Ifcounted as a country, the surrounding CSA has the 15th largest economy in the world in terms of nominal GDP.The city is home to six Fortune 500 companies. They are energy company Occidental Petroleum, healthcare provider Health Net, metalsdistributor Reliance Steel & Aluminum, engineering firm AECOM, real estate group CBRE Group and builder Tutor Perini.
Los Angeles, CA
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PARCEL MAPParking (NAP)
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DEMOGRAPHICS
CONFIDENTIALITYAGREEMENT & DISCLOSURE
This Offering Memorandum is confidential and is furnished toProspective purchasers of the Property described herein subject to the terms of the Confidentiality Agreement previously provided to and executed by such prospective purchasers. This Memorandum isintended solely to assist prospective purchasers in their evaluation ofthe Property and their consideration of whether to purchase the Property. It is not to be used for any other purpose or made available to any other person without the prior written consent of the Seller ofthe Property.
This Memorandum was prepared on the basis of information available to the Seller and to Matysek Investment Group , the Seller’s exclusive agent in connection with the sale of the Property. Matysek Investment Group is a strategic partner of KW Commercial. This Memorandum Contains pertinent information about the Property and the surrounding area but it does not contain all the information necessary for a complete evaluation of the Property. The projected cash flow andother financial information contained herein are for reference only.
Although the information contained in this Memorandum is believed to be accurate and reliable, neither the Seller nor its agent guarantees its accuracy or completeness. Because of the foregoing and because the Property will be sold on an “as is” basis, prospective purchasersshould make their own independent assessments, investigations, and projections regarding the Property. Although additional material,
which may include engineering, environmental or other reports, maybe provided to certain prospective purchasers as appropriate, such parties should confer with their own engineering and environmental experts, counsel, accountants, and other advisors.
The Seller expressly reserves the right, in its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time, with or without notice. The Seller shall have no legal commitment or obligation to any prospective purchaser unless and until a written Purchase and Sale Agreement has been fully executed and delivered and any and all conditions to the Seller’sobligations there under have been fully satisfied or waived.
The Seller is responsible for any commission due Matysek InvestmentGroup in connection with a sale of the Property. The Seller shall not be responsible for any commission claimed by anyother agent or broker in connection with a sale of the Property. No other person, including Matysek Investment Group, is authorized to make any representation agreement on behalf of the Seller. This Memorandum remains the Property of the Seller and Matysek Investment Group and may be used only by parties approved by the Seller and Matysek Investment Group. No portion of this Memorandum may be copied or otherwise reproduced or disclosed toanyone except as provided herein and as permitted by the express terms of the Confidentiality Agreement.
MATYSEK INVESTMENT GROUP | 23670 Hawthorne Blvd. | Suite 100 | Torrance, CA 90505 | T 310.405.0902 | F 310.405.0876 | www.matysekinvestment.com
EL SERENO PLAZA 14
Paul Z. Matysek, [email protected] License # 01757671
EXCLUSIVELY MARKETED BY:Ken [email protected] # 01181838
Ben [email protected] # 01161688
