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Offering Memorandum | 1288 Barry Ave., Los Angeles
1OFFERING MEMORANDUM
1288 BARRY AVELOS ANGELES, CA 90025
6 UNITS | 3+4 Bedrooms
• STELLAR WEST L.A. LOCATION
• LARGE 3- & 4-BEDROOM UNITS
• SOFT-STORY SEISMIC RETROFIT COMPLETED BY SELLER
David Weinberger818.970.0915
[email protected] DRE #01349349
Phil Seymour310.612.9800
[email protected] #00630158
www.TheSeymourGroup.net
DRE #01428774
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Offering Memorandum | 1288 Barry Ave., Los Angeles
2DISCLAIMER
All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due dili-gence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or rel-evance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental lim-itations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal ques-tions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appro-priate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Commercial in compliance with all applicable fair housing anvd equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or with-drawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
Offering Memorandum | 1288 Barry Ave., Los Angeles
3TABLE OF CONTENTS
Executive Summary
Property Information
Market Overview
Financials
• Interior Photos
• Floor Plan
• Exterior Photos
• Aerial Photos
1288 Barry Ave., Los Angeles
EXECUTIVE SUMMARY
Offering Memorandum | 1288 Barry Ave., Los Angeles
5EXECUTIVE SUMMARY
PROPERTY DETAILSHIGHLIGHTS
Assessors Parcel Number:
Buildings:
Year Built:
Land Use:
Zoning:
Stories:
Parking Spaces:
426-0301-3036
One
1960
Apartments
LAR3
2
5
1288 Barry Avenue, is a 6,797 SF multifamily property located in the vibrant area of West L.A.. The property resides on a 6,266 square foot lot.
• LIST PRICE $4,495,000
• STELLAR WEST L.A. LOCATION
• LARGE 3- & 4-BEDROOM UNITS
• SOFT-STORY SEISMIC RETROFIT COMPLETED BY SELLER
*Buyer to cooperate with Seller’s 1031 Exchange
Offering Memorandum | 1288 Barry Ave., Los Angeles
6
1288 Barry Avenue, built in 1960, is located on a tree lined street adjacent to Stoner Park and Wilshire Blvd where tenants can dine, shop, ride bikes or indulge in dinner at the neighborhood restaurant Bandera known for it’s kitchen in the round.
The unit mix is comprised of (Three) 3 Bedroom + 2 Bathroom units, (Two) 4 Bedroom + 3 Bathroom units, and (One) Studio.
The location of the property is in the highly coveted area of West L.A. known for its cultural diversity, multitude of entertainment options, eclectic retail, and food options.
PROPERTY HIGHLIGHTS
Offering Memorandum | 1288 Barry Ave., Los Angeles
7PROPERTY INFORMATION
6Total Unit
1960
6,286 SF
Year Built
Lot Size
6,787 SF
5 SPACES
Building Size
Parking
1288 Barry Ave., Los Angeles
PROPERTY HIGHLIGHTS
Offering Memorandum | 1288 Barry Ave., Los Angeles
9PROPERTY HIGHLIGHTS
THE OPPORTUNITY:
1288 Barry Ave offers investors a unique and rare opportunity to acquire a high yield investment opportunity with low operating expenses in a highly desirable location for investors and renters.
LOCATION, LOCATION, LOCATION:
MULTIPLE OPTIONS FOR INVESTORS:
GREAT WALKABILITY:
TRANSIT ORIENTED:
UNIVERSITY OF CALIFORNIA LOS ANGELES:
West L.A. is one of the most stable rental markets with historically low vacancy rates and long-term appreciation. Residents also enjoy the history, architecture, diversity, community, walkability, food options, outdoor activities and freeway access this area provides.
Located close to major freeways and bus lines that can take tenants across the city. Minutes to Century City, Westwood Village, UCLA, and Beverly Hills
Just a 7 minute drive away is UCLA a flourishing four-year institution in Southern California offering undergraduate and graduate degree programs in a wide range of disciplines. With an approximate enrollment of 28,000 undergraduate and 12,000 graduate students, UCLA is the university with the largest enrollment in the state of California and the most popular university in the United States by number of applicants.
With a 85 Walk Score, 1288 Barry Avenue is a “Very Walkable” location where daily errands can be done without a vehicle. Residents can walk to their favorite restaurant, bar, grocery store or one of the many parks close by.
Several opportunities are in play for income with various options that most properties don’t present, but 1288 Barry Ave does.
• Option # 1 – Continue to operate 1288 Barry Ave as an apartment building and rehab units as natural attrition occurs.
• Option # 2 – Sell each unit off utilizing the TIC (Tenants In Common) model as they become available.
LACK OF HOUSING AFFORDABILITY:There is a significant affordability gap to home ownership in West L.A.. The median home price in the area is approximately $2,219,120. A typical monthly mortgage payment is approximately 6 times more than the average rent at 1288 Barry Avenue.
85Walk Score
Offering Memorandum | 1288 Barry Ave., Los Angeles
10
ZIMAS PUBLIC Generalized Zoning 09/23/2019City of Los Angeles
Department of City Planning
Address: 1288 S BARRY AVE Tract: ARTESIAN TRACT Zoning: [Q]R3-1APN: 4263013036 Block: 58 General Plan: Medium ResidentialPIN #: 129B149 194 Lot: FR 37
Arb: 2
Offering Memorandum | 1288 Barry Ave., Los Angeles
11UNIT # 1 3+2 | INTERIOR PHOTOS
Offering Memorandum | 1288 Barry Ave., Los Angeles
12UNIT # 1 3+2 | INTERIOR PHOTOS
Offering Memorandum | 1288 Barry Ave., Los Angeles
13UNIT # 1 3+2 | INTERIOR PHOTOS
DW
LIVING ROOM11'11" x 23'2"
FOYER11'11" x 4'11"
DINING9'3" x 11'5"
KITCHEN7'11" x 14'11"
BEDROOM14'1" x 12'7"BATH
5'1" x 9'
MASTER BEDROOM13'10" x 11'6"
BATH8'8" x 3'10"
BEDROOM11'7" x 11'
DECK12'3" x 7'7"
FLOOR 1GROSS INTERNAL AREA
TOTAL: 1,229 sq ftFLOOR 1: 1,229 sq ft
DECK: 93 sq ftSIZE AND DIMENSIONS ARE APPROXIMATE, ACTUAL MAY VARY.
UNIT # 1 3+2FLOOR PLANOffering Memorandum1288 Barry Ave., Los Angeles
DW
LIVING ROOM11'11" x 23'2"
FOYER11'11" x 4'11"
DINING9'3" x 11'5"
KITCHEN7'11" x 14'11"
BEDROOM14'1" x 12'7"BATH
5'1" x 9'
MASTER BEDROOM13'10" x 11'6"
BATH8'8" x 3'10"
BEDROOM11'7" x 11'
DECK12'3" x 7'7"
FLOOR 1GROSS INTERNAL AREA
TOTAL: 1,229 sq ftFLOOR 1: 1,229 sq ft
DECK: 93 sq ftSIZE AND DIMENSIONS ARE APPROXIMATE, ACTUAL MAY VARY.
CLOSETCLOSET
Offering Memorandum | 1288 Barry Ave., Los Angeles
15EXTERIOR PHOTOS
Offering Memorandum | 1288 Barry Ave., Los Angeles
16AERIAL PHOTOS
1288 Barry Ave., Los Angeles
MARKET OVERVIEW
Offering Memorandum | 1288 Barry Ave., Los Angeles
18
Santa Monica, California offers more than its beach and year-round warm weather. Its proximity to the greater Los Angeles area makes Santa Monica the perfect place to visit and live.
Offering Memorandum | 1288 Barry Ave., Los Angeles
19
Offering Memorandum | 1288 Barry Ave., Los AngelesLOCAL AMENITIES
Offering Memorandum | 1288 Barry Ave., Los Angeles
21
Subject Property is 1.2 miles from trendy Sawtelle Japantown, where you can grab a tasty bowl of ramen.
Offering Memorandum | 1288 Barry Ave., Los Angeles
22
Subject Property is 1 mile from the 405 Freeway, 2.3 miles from UCLA, and 3.6 miles from Century City.
Offering Memorandum | 1288 Barry Ave., Los Angeles
23
The subject property is only 3 miles from Santa Monica’s beautiful beaches.
Offering Memorandum | 1288 Barry Ave., Los Angeles
24WALKABILITY
85
7 5 15
67
71
VeryWalkable
GoodTransit
VeryBikeable
Most errands can be accomplished on foot.
Many nearby public transportation options.
1288 Barry Avenue has a Walk Score of 85 out of 100. This location is Very Walkable so most errands can be accomplished on foot.
This location is in the West Los Angeles neighborhood in Los Angeles. Nearby parks include Westwood Recreation Center, Stoner Recreation Center and Jackie Robinson Stadium.
MINUTES TOUCLA
MINUTES TOBRENTWOOD
MINUTES TOSANTA MONICA
Mostly flat, some bike lanes.
Offering Memorandum | 1288 Barry Ave., Los Angeles
25
Total Businesses Total Employees
KEY FACTS
BUSINESS
Median HouseholdIncomeAverage
Household Size
Median Age
DEMOGRAPHICS
2020 Summary 1 Mile 3 Miles 5 Miles
Population 47,208 250,959 244,851
Households 23,958 114,895 530,799
Families 24,045 48,094 120,225
Average Household Size 1.7 1.86 2.01
Owner Occupied Units 3,265 21,228 53,070
Renter Occupid Units 15,568 46,704 116,760
Median Age 33 37.2 38.3
Average Household Income 92,974 120,089 120,209
2025 Summary 1 Mile 3 Miles 5 Miles
Population 47,231 252,33 $246,197
Households 24,518 119,895 538,299
Families 23,245 50,094 125,034
Average Household Size 2 1.91 2.05
Owner Occupoied Units 3,765 24,378 61,170
Renter Occupied Units 15,723 47,171.00 117,343
Median Age 33 37.8 38.1
Average Household Income $118,447 $147,632 $120,329
1288 Barry Ave., Los Angeles
FINANCIALS
Offering Memorandum | 1288 Barry Ave., Los Angeles
27FINANCIALS
FINANCIAL INDICATORS
Offering Price $4,495,000
Current CAP 4.3%
Market CAP 4.7%
Current GRM 16.6
Market GRM 15.5
Cost Per SF $662
Cost Per Unit $749,167
Cash on Cash Return 4.3%
Expenses Per Unit $12,011
Expenses Per Sq Ft $10.62
BUILDING DATA
Units 6
Year Built 1960
Lot Sq Ft 6,286
Bldg Gross Sq Ft 6,787
Parking Spaces 5
ESTIMATED ANNUALIZED EXPENSES
New Property Taxes $52,784
So Cal gas $845
LADWP $5,662
Trash Service $2,580
Property Insurance $3,110
Maintenance & Repairs $5,562
Pest Control, Gardner $1,525
Total Estimated Expenses -$72,068
SOURCE OF INCOME CURRENT RENTS MARKET RENTS
# of Units Unit Type Avg. Rent Total Avg. Rent Income
3 3 Bed / 2 bath $3,727 $11,181 $3,972 $11,916
2 4 Bed / 3 bath $4,850 $9,700 $5,200 $10,400
1 Studio $1,555 $1,555 $1,750 $1,750
Total Rental Income $22,436 $24,066
Laundry Income $90 $90
Total Monthly Income $22,526 $24,156
Total Annual Income $270,317 $289,877
EST. ANNUALIZED OPERATING DATA CURRENT MARKET
Scheduled Gross Income $270,317 $289,877
Less Vacancy 2.0% ($5,406) 2.0% ($5,798)
Gross Operating Income $264,911 $284,079
Less Expenses 27% ($72,068) 25% ($72,068)
Net Operating Income $192,843 $212,012
Notations:1) Real Estate Taxes have been underwritten based a tax rate of 1.1742792) Property Insurance: Based on actual expenses from 7/18 - 7/193) Maintenance & Repairs: Based on actual expenses from 7/18 - 7/194) Pest Control & Gardner: Based on actual expenses from 7/18 - 7/195) Reserves & Replacements : Based upon $450 per unit per year.6) LADWP: Based on actual expenses from 7/18 - 7/197) Trash Service: Based on actual expenses from 7/18 - 7/198) So Cal Gas: Based on actual expenses from 7/18 - 7/19
Offering Memorandum | 1288 Barry Ave., Los Angeles
28RENT ROLL
UNIT STATUS UNIT TYPE NOTATIONS CURRENT RENTPOST RENOVATION
MARKET RENT
1 Tenant 3 Bed /2 Bath PATIO $3,916 $3,916
2 Tenant Studio $1,555 $1,750
3 Tenant 4 Bed / 3 Bath $5,200 $5,200
4 Tenant 3 Bed / 2 Bath $3,605 $4,000
5 Tenant 4 Bed / 3 Bath $4,500 $5,200
6 Tenant 3 Bed / 2 Bath $3,660 $4,000
TOTAL: $22,436 $24,066
Offering Memorandum1288 Barry Avenue, Los Angeles, CA 90025
6 Units | $4,495,000
David Weinberger818.970.0915
[email protected] DRE #01349349
Phil Seymour310.612.9800
[email protected] #00630158
www.TheSeymourGroup.net
DRE #01428774