OFFERING MEMORANDUM · The investment consists of a master metered duplex which houses the larger 2 bed / 1 bath and 1 bed / 1 bath units. With the landlord paying for these utilities,

OFFERING MEMORANDUM

1326-1328 5th Avenue

Los Angeles, CA 90019

5TH AVENUE APARTMENTS

6 UNITS IN ARLINGTON HEIGHTS

A G G R E G A T E I P . C O M


Los Angeles, CA 90019CONFIDENTIALITY AGREEMENT

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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

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 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.

BROKER OF RECORD

251 S. Lake Avenue, Suite 320

Pasadena, CA 91101

DRE: 01444805

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 relevance 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 limitations as well as market conditions, 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 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 appropriate engineers, architects,

contractors, other consultants and governmental agencies. All properties and services are marketed by KW

Commercial in compliance with all applicable fair housing and equal opportunity laws.

CASEY PICARD, Managing Partner

626.716.4451 Mobile

626.376.9224 Direct

[email protected]

DRE: 01921866

EXECUTIVE SUMMARY

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SECTION 11326-1328 5th Avenue, Los Angeles, CA 90019 OFFERING MEMORANDUM

EXECUTIVE SUMMARY1326-1328 5th Avenue, Los Angeles, CA 90019 OFFERING MEMORANDUM

Located in the ever-improving neighborhood of Arlington Heights in Los

Angeles, California, this multi-family investment property has huge upside with a

potential increase of 65% in rental income. Offering one-2 bed / 1 bath and five-

1 bed / 1 bath units the building measures ±3,806 square feet on a ±6,721

square foot lot.

The investment consists of a master metered duplex which houses the larger 2

bed / 1 bath and 1 bed / 1 bath units. With the landlord paying for these utilities,

a 5% annual increase in rental income is approved by the city of Los Angeles. In

the rear portion of the property, the quadraplex which was built in 1950 is

individually metered for gas and electricity which allows for an annual increase of

3% in potential income.

Sitting south of Pico Boulevard and West of Arlington Avenue, the investment is

centrally located to all of Los Angeles' greatest offerings which includes a short

drive to Downtown Los Angeles, Hollywood, the New Inglewood Stadium, and

Venice Beach. Furthermore, the asset sits with easy access to the 10 Freeway

and many other freeways.

ADDRESS 1326-1328 5th Avenue

APN 5072-025-009

NUMBER OF UNITS 6

BUILDING SF 3,806

LOT SF 6,721

YEAR BUILT 1908 & 1950

PARCEL MAP1326-1328 5th Avenue, Los Angeles, CA 90019 OFFERING MEMORANDUM

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Huge rental upside of 65%

Duplex was built in 1908 and the quadraplex was built in 1950

Duplex is master metered for water, gas, and electric while the quadraplex is individually

metered for electric and gas

Secure gate entry and parking

Potential to increase income by installing a laundry room on-site

Centrally located to all of Greater Los Angeles' best offerings

Located in a tier 3 transit-oriented community-Allows for an increase of density

by 70%

South of Pico Boulevard and East of Crenshaw Boulevard

THE OPPORTUNITY1326-1328 5th Avenue, Los Angeles, CA 90019

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PROPERTY PHOTOS1326-1328 5th Avenue, Los Angeles, CA 90019 OFFERING MEMORANDUM

AERIAL VIEW1326-1328 5th Avenue, Los Angeles, CA 90019 OFFERING MEMORANDUM

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FINANCIAL ANALYSIS


FINANCIAL ANALYSIS1326-1328 5th Avenue, Los Angeles, CA 90019 OFFERING MEMORANDUM

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PRICING FINANCING THE ASSETPrice $1,175,000 Down 50% $587,500 Units 6Price/Unit $195,833 Loan 50% $587,500 Year Built 1908 & 1950Price/SF $308.72 Amort Years 30 Gross SF 3,806GRM 16.52 10.09 Interest Rate 4.60% Lot SF 5,721Cap 3.43% 7.12% Payments ($3,012) APN 5072-025-009

Current Market

MONTHLY RENT SCHEDULE# of Units Type Unit Size Current Rent per SF Total Market Rent per SF Total

1 2 Bed / 1 Bath 900 $1,340.76 $1.49 $1,341 $1,950 $2.17 $1,9501 1 Bed / 1 Bath 775 $962.00 $1.24 $962 $1,750 $2.26 $1,7504 1 Bed / 1 Bath 553 $906.30 $1.64 $3,625 $1,500 $2.71 $6,0006 $5,928 $9,700

ANNUALIZED INCOME Current Market$71,136 $116,400

3% ($2,134) 3% ($3,492)$1,080

Gross Potential RentLess VacancyOther IncomeEffective Gross Income $69,001 $113,988

ANNUALIZED EXPENSES Assumption Current Market$14,019.90 $14,019.90

$1,500.00 $1,500.00$2,875.20 $2,875.20$6,215.57 $6,215.57

$537.73 $537.73$2,775.00 $4,515.00

Property TaxInsuranceRubbishDWPSocal GasRepairs & MaintenancePest Control

1.193183%$.40 per SF

2018 Projected2017 Actual2017 Actual

4% of EGIEstimated $720.00 $720.00

$28,643.40 $30,383.40$4,773.90 $5,063.90

$7.53 $7.98

Total ExpensesExpenses/UnitExpenses/SF% of EGI 41.51% 26.65%

RETURN Current MarketNOI $40,358.05 $83,604.60Less Debt ($36,141.43) ($36,141.43)Cashflow $4,216.63 $47,463.17Cash on Cash 0.72% 8.08%

FINANCIAL ANALYSIS1326-1328 5th Avenue, Los Angeles, CA 90019 OFFERING MEMORANDUM

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Unit # Type Approx SF Current Rent Rent/SF Market Rent Rent SF Occup ied

1326 2+1 900 $1,340.76 $1.49 $1,950.00 $2.17 Yes

1326.5 1+1 775 $962.00 $1.24 $1,750.00 $2.26 Yes

1328 1+1 533 $795.52 $1.49 $1,500.00 $2.81 Yes

1328.25 1+1 533 $940.18 $1.76 $1,500.00 $2.81 Yes

1328.5 1+1 533 $982.11 $1.84 $1,500.00 $2.81 Yes

1327.75 1+1 533 $907.40 $1.70 $1,500.00 $2.81 Yes

$5,927.97 $9,700.00Total Monthly Rent

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LOCATION


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LOCATION MAP1326-1328 5th Avenue, Los Angeles, CA 90019 OFFERING MEMORANDUM

HOLLYWOOD

MIRACLE MILE

DOWNTOWN LA

CONSULATES

KOREATOWN

BEVERLY CENTER

CULVER CITY

Located in the heart of Mid-City, Arlington Heights is a melting pot of cultural influences.

Situated just north of Interstate 10, this community is known for its central location with easy

access to Hancock Park, the beach, and Culver City. Arlington Heights is an ideal place for

anyone who is looking to live on a budget but without sacrificing the amenities that make Los

Angeles great.

• Homes with a history: Arlington Heights has a remarkable concentration of intact

American Foursquare, Craftsman and Spanish Colonial Revival homes.

• Central location: It may have been in the country when it was founded, but Arlington

Heights is now conveniently close to the action in Koreatown and downtown.

• Gallery row: Anchored by the Underground Museum, a stretch of Washington Boulevard

between 3rd and 6th avenues is becoming a hot spot for art galleries and boutiques.

ARLINGTON HEIGHTS

NEIGHBORHOOD

OFFERING MEMORANDUM

BROKER OF RECORD

251 S. Lake Avenue, Suite 320

Pasadena, CA 91101

DRE: 01444805

CASEY PICARD, Managing Partner

626.716.4451 Mobile

626.376.9224 Direct

[email protected]

DRE: 01921866


Los Angeles, CA 90019

Documents

OFFERING MEMORANDUM · The investment consists of a master metered duplex which houses the larger 2 bed / 1 bath and 1 bed / 1 bath units. With the landlord paying for these utilities,