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KIRK GARABEDIANDirector0: 818.588.0072C: [email protected] DRE #01216376
8930-8934 STATE STATE, SOUTH GATE, CA
PRESENTED BY:
OFFERING MEMORANDUM
3-Unit Retail & Workshop | South Gate, CA
OFFERING MEMORANDUM | 8932-8934 STATE ST | SOUTHGATE
KW COMMERCIAL889 Americana Way,Ste. #408Glendale, CA 91210
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 2
OFFERING MEMORANDUM
Confidentiality & DisclaimerSOUTH GATE, CA
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 financialperformance 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 diligence to determine these and othermatters 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 independentprofessionals 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. KWCommercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any partyregarding 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 maybe 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 limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with acertified 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 withapplicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KirkGarabedian | KW Commercial in compliance with all applicable fair housing and equal opportunity laws.
KW COMMERCIAL889 Americana Way,Ste. #408Glendale, CA 91210
PRESENTED BY:
KIRK GARABEDIANDirector0: 818.588.0072C: [email protected] DRE# #01216376
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 otherconditions, prior sale, lease or financing, or withdrawal 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 shouldconduct your own investigation of the property and transaction.
x486405.yourkwagent.com/ 3
PROPERTY INFORMATION
1 | PROPERTY INFORMATION
EXECUTIVE SUMMARY
PROPERTY DESCRIPTION
PROPERTY DETAILS
ADDITIONAL PHOTOS
ADDITIONAL PHOTOS
ADDITIONAL PHOTOS
ADDITIONAL PHOTOS
1PROPERTY INFORMATION3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA
OFFERING MEMORANDUM
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 4
OFFERING SUMMARYSALE PRICE: $650,000
NUMBER OF UNITS: 3
CAP RATE: 5.0%
NOI: $32,500
LOT SIZE: 5,589 SF
YEAR BUILT: 1946
BUILDING SIZE: 2,030
ZONING:NM - NeighborhoodMedium
MARKET: Los Angeles County
SUBMARKET: Mid-Cities
PRICE / SF: $320.20
PROPERTY OVERVIEWWe are pleased to present a 3-unit retail & workshop property, located in the City of South Gate on State Street near the largesignalized intersection of State Street and Firestone Boulevard. This property presents a rare opportunity to purchase anaffordable multi-tenant property that will allow an owner-user to occupy one of the suites and rent out the rest of the units togenerate income.
The property is approximately 2,030 square feet in size and is situated on nearly 5,600 square foot of land. Each unit is between600 to 700 square feet, with two retail storefronts units in the front and a workshop unit in the back. There is a driveway whichleads from State Street to the parking lot in the rear.
At the present time, the property has one retail unit and the rear workshop unit occupied. All of the tenants are on a month tomonth lease and are enjoying below market rents.
We ask that you do not disturb the tenants and contact the Listing Agent for additional details.
PROPERTY HIGHLIGHTS• A 3-Unit Retail & Workshop Property
• Affordable Three Unit Property
• Includes Private Parking Lot with Entrance From State St
• Centrally Located Near Firestone Boulevard
• All Tenants are on Month to Month
• One Vacant Unit Ready to Occupy
Executive Summary
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 1 | PROPERTY INFORMATION
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 5
PROPERTY OVERVIEWWe are pleased to present a 3-unit retail & workshop property, located in the City of South Gate on State Streetnear the large signalized intersection of State Street and Firestone Boulevard. This property presents a rareopportunity to purchase an affordable multi-tenant property that will allow an owner-user to occupy one of thesuites and rent out the rest of the units to generate income.
The property is approximately 2,030 square feet in size and is situated on nearly 5,600 square foot of land.Each unit is between 600 to 700 square feet, with two retail storefronts units in the front and a workshop unit inthe back. There is a driveway which leads from State Street to the parking lot in the rear.
At the present time, the property has one retail unit and the rear workshop unit occupied. All of the tenants areon a month to month lease and are enjoying below market rents.
We ask that you do not disturb the tenants and contact the Listing Agent for additional details.
LOCATION OVERVIEWThe property is located on State Street near the signalized intersection of State Street and Firestone Boulevard.The immediate area has an eclectic mix of retail, medical and service-based businesses along with someresidential properties and a thriving neighborhood atmosphere. The population in area is 96,000 and nearly13,000 people per square mile. Neighboring communities include Bell Gardens, Cudahy, Downey,Florence-Firestone, Huntington Park, Lynwood, Paramount, Walnut Park and Watts.
Property Description
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 1 | PROPERTY INFORMATION
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 6
SALE PRICE $650,000
LOCATION INFORMATIONBuilding Name 3-Unit Retail & Workshop | South Gate, CA
Street Address 8930 State Street
City, State, Zip South Gate, CA 90280
County/Township Los Angeles
Market Los Angeles County
Submarket Mid-Cities
Cross Streets Firestone Blvd & State St
BUILDING INFORMATIONBuilding Size 2,030 SF
Occupancy % 65%
Tenancy Multiple
Number Of Floors 1
Year Built 1946
Load Factor Yes
PROPERTY DETAILSProperty Type Retail
Property Subtype Street Retail
Zoning NM - Neighborhood Medium
Lot Size 5,589 SF
APN# 6210-026-038
Property Details
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 1 | PROPERTY INFORMATION
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Additional Photos
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 1 | PROPERTY INFORMATION
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 8
Additional Photos
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 1 | PROPERTY INFORMATION
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 9
Additional Photos
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 1 | PROPERTY INFORMATION
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 10
Additional Photos
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 1 | PROPERTY INFORMATION
x486405.yourkwagent.com/ 11
LOCATION INFORMATION
2 | LOCATION INFORMATION
REGIONAL MAP
LOCATION MAPS
AERIAL MAP
2LOCATION INFORMATION3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA
OFFERING MEMORANDUM
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 12
3-Unit Retail & Workshop |South Gate, CA
Regional Map
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 2 | LOCATION INFORMATION
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 13
Location Maps
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 2 | LOCATION INFORMATION
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 14
Aerial Map
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 2 | LOCATION INFORMATION
x486405.yourkwagent.com/ 15
FINANCIAL ANALYSIS
3 | FINANCIAL ANALYSIS
RENT ROLL
INCOME & EXPENSES
FINANCIAL SUMMARY
3FINANCIAL ANALYSIS3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA
OFFERING MEMORANDUM
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 16
TENANT
NAME
UNIT
NUMBER
UNIT
SIZE (SF)
LEASE
START
LEASE
END
ANNUAL
RENT
% OF
GLA
PRICE
PER SF/YR
PRICE
PER SF/MONTH
VACANT 8932 700 Vacant -- $18,900 34.48 $27.00 $2.25
Herbal Store 8934 600 2014 MTM $13,800 29.56 $23.00 $1.92
Contractor's Workshop 8930 700 2015 MTM $9,600 34.48 $13.71 $1.14
Totals/Averages 2,000 $42,300 $21.15 $1.76
Rent Roll
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 3 | FINANCIAL ANALYSIS
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 17
INCOME SUMMARY CURRENT PER SF
Scheduled Gross Income $23,400 $11.53
Proforma Income from Vacant Unit $18,900 $9.31
Gross Income $42,300 $20.84
EXPENSE SUMMARY CURRENT PER SF
Property Taxes (Estimated at 1.22%) $7,800 $3.84
Insurance (Estimated) $1,200 $0.59
Repairs & Maintenance $800 $0.39
Gross Expenses $9,800 $4.83
Net Operating Income $32,500 $16.01
Income & Expenses
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 3 | FINANCIAL ANALYSIS
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INVESTMENT OVERVIEW CURRENT
Price $650,000
Price per SF $320.20
CAP Rate 5.0%
Cash-on-Cash Return (yr 1) 2.0 %
Total Return (yr 1) $14,694
Debt Coverage Ratio 1.14
OPERATING DATA CURRENT
Gross Scheduled Income $23,400
Proforma Income From Vacant Unit $18,900
Total Scheduled Income $42,300
Gross Income $42,300
Operating Expenses (Estimated) $9,800
Net Operating Income $32,500
Pre-Tax Cash Flow $3,997
FINANCING DATA CURRENT
Down Payment $200,000
Loan Amount $450,000
Debt Service $28,503
Debt Service Monthly $2,375
Principal Reduction (yr 1) $10,697
Financial Summary
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 3 | FINANCIAL ANALYSIS
x486405.yourkwagent.com/ 19
SALE COMPARABLES
4 | SALE COMPARABLES
SALE COMPS MAP
SALE COMPS SUMMARY
SALE COMPS
4SALE COMPARABLES3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA
OFFERING MEMORANDUM
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 20
8930 State Street | South Gate, CA 90280SUBJECT PROPERTY
111302 Long Beach BlvdLynwood, CA 90262
11302 LONG BEACH BLVD 23045 Century BlvdSouth Gate, CA 90280
3045 CENTURY BLVD 33277 E Gage AveHuntington Park, CA 90255
3277 E GAGE AVE 43310 Tweedy BlvdSouth Gate, CA 90280
3310 TWEEDY BLVD
53737 Tweedy BlvdSouth Gate, CA 90280
3737 TWEEDY BLVD 68232 Santa Fe AveHuntington Park, CA 90255
8232 SANTA FE AVE
Sale Comps Map
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 4 | SALE COMPARABLES
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 21
1
2
3
4
5
SUBJECT PROPERTY PRICE BLDG SF PRICE/SF CAP # OF UNITS
3-Unit Retail & Workshop | South Gate,CA8930 State StreetSouth Gate, CA 90280
$650,000 2,030 SF $320.20 5.0% 3
SALE COMPS PRICE BLDG SF PRICE/SF CAP # OF UNITS CLOSE
11302 Long Beach Blvd11302 Long Beach BlvdLynwood, CA 90262
$730,000 2,345 SF $311.30 0.0% 3 03/06/2020
3045 Century Blvd3045 Century BlvdSouth Gate, CA 90280
$400,000 1,296 SF $308.64 0.0% 1 02/14/2020
3277 E Gage Ave3277 E Gage AveHuntington Park, CA 90255
$295,000 922 SF $319.96 0.0% 1 02/04/2020
3310 Tweedy Blvd3310 Tweedy BlvdSouth Gate, CA 90280
$1,026,000 2,700 SF $380.00 0.0% 2 12/20/2019
3737 Tweedy Blvd3737 Tweedy BlvdSouth Gate, CA 90280
$800,000 2,226 SF $359.39 0.0% 1 04/08/2019
Sale Comps Summary
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 4 | SALE COMPARABLES
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 22
6
SUBJECT PROPERTY PRICE BLDG SF PRICE/SF CAP # OF UNITS
8232 Santa Fe Ave8232 Santa Fe AveHuntington Park, CA 90255
$700,000 1,864 SF $375.54 - 3 03/21/2020
Totals/Averages $658,500 1,892 SF $348.04 - 1.83
Sale Comps Summary
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 4 | SALE COMPARABLES
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 23
Subject Property8930 State Street | South Gate, CA 90280
$650,000Sale Price: 5,589 SFLot Size: 1946Year Built:
$320.20Price PSF: 2,030 SFBuilding SF: 5.00%CAP:
$32,500NOI:
1
11302 Long Beach Blvd11302 Long Beach Blvd | Lynwood, CA 90262
$730,000Sale Price: 103,411,440 SFLot Size: 1948Year Built:
2,345 SFBuilding SF: $311.30Price PSF: 0.00%CAP:
03/06/2020Closed: 0%Occupancy: $0NOI:
This was the purchase of a retail/office building.
1
2
3045 Century Blvd3045 Century Blvd | South Gate, CA 90280
$400,000Sale Price: 6,534 SFLot Size: 1966Year Built:
1,296 SFBuilding SF: $308.64Price PSF: 0.00%CAP:
02/14/2020Closed: 0%Occupancy: $0NOI:
This is a restaurant property.
2
Sale Comps
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 4 | SALE COMPARABLES
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 24
3
3277 E Gage Ave3277 E Gage Ave | Huntington Park, CA 90255
$295,000Sale Price: 2,792 SFLot Size: 1938Year Built:
922 SFBuilding SF: $319.96Price PSF: 0.00%CAP:
02/04/2020Closed: 100%Occupancy: $0NOI:
Small retail property sold in February of 2020.
3
4
3310 Tweedy Blvd3310 Tweedy Blvd | South Gate, CA 90280
$1,026,000Sale Price: 11,604 SFLot Size: 1964Year Built:
2,700 SFBuilding SF: $380.00Price PSF: 0.00%CAP:
12/20/2019Closed: 100%Occupancy: $0NOI:
This was an owner-user purchase.
4
5
3737 Tweedy Blvd3737 Tweedy Blvd | South Gate, CA 90280
$800,000Sale Price: 6,395 SFLot Size: 1956Year Built:
2,226 SFBuilding SF: $359.39Price PSF: 0.00%CAP:
04/08/2019Closed: 100%Occupancy: $0NOI:
Buyer will occupy as a Veterinary.
5
Sale Comps
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 4 | SALE COMPARABLES
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 25
6
8232 Santa Fe Ave8232 Santa Fe Ave | Huntington Park, CA 90255
$700,000Sale Price: 6,970 SFLot Size: 1932Year Built:
1,864 SFBuilding SF: $375.54Price PSF: 03/21/2020Closed:
100%Occupancy:
6
Sale Comps
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 4 | SALE COMPARABLES
x486405.yourkwagent.com/ 27
DEMOGRAPHICS
6 | DEMOGRAPHICS
DEMOGRAPHICS MAP
6DEMOGRAPHICS3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA
OFFERING MEMORANDUM
Each Office Independently Owned and Operated x486405.yourkwagent.com/ 28
POPULATION 0.5 MILES 1 MILE 1.5 MILES
Total Population 15,259 64,721 131,554
Median Age 29.2 28.6 28.6
Median Age (Male) 26.1 26.6 27.0
Median Age (Female) 31.6 30.4 30.2
HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES
Total Households 3,856 15,932 31,675
# Of Persons Per HH 4.0 4.1 4.2
Average HH Income $45,022 $47,780 $49,088
Average House Value $479,617 $383,292 $398,377
* Demographic data derived from 2010 US Census
Demographics Map
3-UNIT RETAIL & WORKSHOP | SOUTH GATE, CA 6 | DEMOGRAPHICS
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