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9-Unit Apartment Building
2828E 6 T H S T R E E T
RENOVATED IN 2018
DISCLAIMER AND
CONFIDENTIALITY
AGREEMENT
The material contained in this document is confidential, furnished solely for the purpose of considering
the purchase of 2828 E 6th Street, Long Beach, CA (“Subject Property”) and is not to be copied and/or
used for any purpose or made available for any other person without the express written consent of
the Anderson Real Estate Group. In accepting this, the recipient agrees to keep all material contained
herein confidential.
The information contained in this document has been obtained from sources believed to be reliable.
While the Anderson Real Estate Group does not doubt its accuracy, the Anderson Real Estate Group
has not verified it and makes no guarantee, warranty or representation about it and it is the
responsibility of any prospective purchaser to independently confirm its accuracy and completeness.
Any projections, opinions, assumptions or estimates are used for example only and do not represent
the current or future performance of the property. The value of this transaction to any prospective
purchaser depends on tax and other factors which should be evaluated by your tax, financial and legal
advisors. You and your advisors should conduct a careful, independent investigation of the property to
determine to your satisfaction the suitability of the property for your needs. All trademarks displayed
on this document are the property of their respective owners.
The Seller retains the right to withdraw, modify or cancel this offer to sell at any time without notice or
obligation. Any sale is subject to the sole and unrestricted approval of Seller and Seller shall be under
no obligation to any party until such time as Seller and any other necessary parties have executed a
contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall
only be those in such contract of sale.
ANDERSON COMMERCIAL
2828 E 6th Street | [email protected] PG 1
TABLE OF
CONTENTS
Executive Summary ……………………………………………………..
Floorplans …………………………………………………………………….
Financial Overview ………………………………………………………
Rent Roll ……………………………………………………………………….
Property Comparables ………………………………………………….
Sales Comps ………………………………………………………………….
Long Beach Overview ……………………………………………………
ANDERSON COMMERCIAL
2828 E 6th Street | [email protected]
3
10
12
14
15
16
18
PG 2
EXECUTIVE
SUMMARY
2828 East 6th Street is a nine unit apartment complex
nestled into the tree-lined neighborhood of Rose Park,
approximately ¾ of a mile from the Pacific Ocean. Rose
Park boasts a diverse mixture of lovingly maintained
craftsman bungalows and modern multi-family
buildings—recent single-family home sales range from c.
$605,000 to $1,162,000. Rose Park offers a number of
trendy restaurants and cafes within walking distance to
the Subject Property – including Rose Park Roasters and
PRIME by Shenandoa – and to a neighborhood Ralph’s
grocery store.
ANDERSON COMMERCIAL
2828 E 6th Street | [email protected] PG 4
FINANCIAL SUMMARYCORE MULTI-FAMILY OPPORTUNITY
• Value like returns with core risk profile, leveraged (to perfection) for a core plus return profile.
• Above average rent, with strong value appreciation
TURN-KEY ASSET• Best-in-class interior finishes• All plumbing and electrical fixtures have been
completely modernized.• Brand new steel sectional garage doors with LiftMasters
HISTORIC ROSE PARK• Walk Score of 87• Strong resident profile, with average incomes over • Plush with jobs: lacking upscale apartments. Ratio of
population to upscale apartment units: 800:1
CITY OF OPPORTUNITY• Midst of full-scale transformation, with over $5 Billion
in current and planned real estate investments.• Scaling up to host nine events in the 2028 Olympic Games
PRICING SUMMARY / BUILDING DATA
Year Built
1960Assumed Down
Payment
2018Year Renovated
35%
Building Size (Sq ft)
6,008*Lot Size (Sq ft)
6,751*CAP Rate
Mo. NOI Current
$12.59KCurrent GRM
14.68
Annual NOI Current
$151KCurrent Price Per Unit
$361K
*Data Provided Per Assessor
4.65%
PG 5
2828 East 6th Street is a 9-unit apartment building located in the Rose Park neighborhood of Long Beach, walking distance to Juniper Beach, Carroll Park, and trendy Retro Row shopping and dinning.
Originally constructed in 1960, the property features an attractive unit mix with five (5) 2 bed / 1 bath units, three (3) 1 bed / 1 bath units and one (1) studio. All units have been rented out and are currently setting the new standard for rental rates in the area.
Each unit has undergone major interior improvements. ranging from new engineered hardwood floors, to high-end quartz countertops with sleek and modern finishes, to new gas lines for in-unit washer and dryers in 8 of the units. The property is separately metered for electricity and gas, as well as master meteredfor water.
4.65% Cap Rose Park
9-Unit Property
Offer Price $3,250,000
Unit Mix5 (2 bed / 1 bath) 3 (1 bed / 1 bath)
1 (Studio)
Total Building Area 6,008 Sq ft
Lot Size 6,751 Sq ft
Parking5 income producing garage
spaces
LaundryIn-house for 8 unitsIn-garage for Unit-1
LTV (Proposed) 65%
Debt Coverage 1.18x (Current)
Interest Rate (Proposed) 4.5%
Term/Amort (Proposed) 30 Years
Current Cap| GRM 4.65% | 14.68
APN 7257-007-009
UtilitiesWater – 1 meter
Electric – 9 metersGas – 9 meters
Zoning LBR2N
Rent Control None
Year Built 1960
PG 6
Bathroom Unit-1 Kitchen Unit-4
Kitchen Unit-5
PG 7
Kitchen and Living Room Unit-2
Living Room Unit-7 Exterior and Garage Parking
PG 8
RECONFIGURATION
2828 E 6th Street has been reconfigured to optimizevalue potential and marketability. In addition to thecomplete remodel of all units, the property has alsobeen reconfigured to create a more modernizedproduct. Units 3 and 9 were extensively overhauledto provide a more attractive floorplan.
IMPROVEMENTS
Interior
• Engineered hardwood and painted concrete floors
• Upgraded lighting • New ceiling fans• Smooth plastered ceilings• Wall heaters replaced or
refurbished
Exterior
• Creation of two private patios in rear of Units 3 and 9
• Hardscaping and landscaping• Fresh exterior paint• 5 state-of-the-art custom
garage doors• Upgraded all locks and
hardware for exterior doors
Bathrooms
• Fashionable polished ceramic subway tiles
• Modern tubs with designer shower fixtures
• Sleek, contrasting bathroom vanities
Kitchen
• Tailor-made quartz kitchen counters
• Energy efficient appliances• Addition of in-unit, energy
efficient washer and dryers • High-end designer cabinetry
PG 9
UNIT 9
GROSS INTERNAL AREA
Total: 753 sq ft
SIZES AND DIMENSIONS ARE
APPROXIMATE, ACTUAL MAY VARY.
RECONFIGURED
LAYOUT
TWO BEDROOM
ANDERSON COMMERCIAL
2828 E 6th Street | [email protected]
UNIT9
PG 10
UNIT 3
GROSS INTERNAL AREA
Total: 538 sq ft
SIZES AND DIMENSIONS ARE
APPROXIMATE, ACTUAL MAY VARY.
RECONFIGURED
LAYOUT
STUDIO
ANDERSON COMMERCIAL
2828 E 6th Street | [email protected]
UNIT 3
PG 11
FINANCIAL
OVERVIEW
INCOME &
EXPENSES
INCOME
EXPENSES
**Current – based on current rents per executed lease agreements. Actual expenses per seller except as noted.
ANDERSON COMMERCIAL
2828 E 6th Street | [email protected]
CURRENT**
Monthly Scheduled Unit Rental Income
17,825
Annual Scheduled Unit Rental Income
213,900
Parking and Storage Income 7,500
Gross Scheduled Income 221,400
Less: Vacancy (@ 5% of GSI) (11,070)
Effective Gross Income $ 210,330
CURRENT** $/UNIT %EGI
Property Tax (@1.25% of Sales Price) 40,625 4,513 19.39%
Insurance 2,566 285 1.22%
Management Fees (@4% of EGI) 8,413 935 4.0%
Landscaping 720 80 0.34%
Maintenance 3,150 350 1.50%
Utilities 2,040 226 0.97%
Other, Reserve (@$200/UNIT) 1,800 200 0.86%
Total Expenses 59,314 6,590 28.30%
NET OPERATING INCOME 151,016 13,179
Less: Debt Service (128,445)
PROJECTED CASH FLOW 22,571
Plus: Principal Reduction 34,079
Gross Equity Income 56,650
Annual Depreciation 80,364
PG 13
RENT
ROLL
ANDERSON COMMERCIAL
2828 E 6th Street | [email protected]
* Unit square footage is approximated / buyer to verify.
Unit # Unit Type Unit SF* Expiration Rent/SF Current RentParking/Storage
Rent
1 1 Bed / 1 Bath 600 10/1/2019 $2.82 $1,690 -
2 1 Bed / 1 Bath 600 2/27/2020 $2.92 $1,750 $75
3 Studio 450 1/15/2020 $3.30 $1,485 $125
4 2 Bed / 1 Bath 800 2/15/2020 $2.94 $2,350 -
5 2 Bed / 1 Bath 700 2/2/2020 $2.86 $2,000 -
6 2 Bed / 1 Bath 700 1/27/2020 $3.00 $2,100 $150
7 2 Bed / 1 Bath 850 10/29/2019 $2.71 $2,300 $100
8 1 Bed / 1 Bath 600 12/21/2019 $2.92 $1,750 $100
9 2 Bed / 1 Bath 700 12/15/2019 $3.43 $2,400 $75
Total/Average 6,000 $2.97 $17,825 $625
PG 14
PROPERTY
COMPARABLES
SALES
COMPS
ANDERSON COMMERCIAL
2828 E 6th Street | [email protected]
12
4
3
5
2320 E 6th St.
2
790 Mira Mar Ave.
4
910-930 Freeman Ave
6
640 Stanley Ave
3
314 Hermosa Ave.
5
336 Obispo Ave
7
1) 2828 E 6th St. Long Beach (Subject)
PG 16
6
7
SALES
COMPS
ANDERSON COMMERCIAL
2828 E 6th Street | [email protected]
Source: CoStar and MLS. Reported Cap rate and Sale price**366 Obispo Ave NOI approximated based on actual Cap rate and Sales Price as reported in CoStar
Comp Address # Units Year Built Bldg SF Lot SF Price $/Unit NOI Cap Rate GRM Unit Mix COE
2 2320 E 6th St. 9 1961 7,098 6,495 $3,250,000 $361,111 n/a n/a n/a8 - 2b/1b1 - 1b/1b
9/5/18
3 640 Stanley Ave. 16 1973 14,840 13,530 $5,200,000 $325,000 $186,160 3.58% 15.65 16 – 2b/2b 1/8/19
4790 Mira Mar Ave.
9 1963 7,004 6,534 $2,400,000 $266,667 $91,249 3.80% 16.045 - 2b/1b1 - 1b/1b
8/8/18
5314 HermosaAve.
8 1986 6,516 6,098 $2,725,000 $340,625 n/a n/a n/a 8 - 2b/2b 12/27/18
6910-930 Freeman Ave.
36 1963 27,124 27,013 $11,050,000 $306,944 $487,900 4.42% 14.0232 – 2b/1b4 – 1b/1b
11/29/18
7366 Obispo Ave.**
5 1927 4,940 6,752 $1,600,000 $320,000 $64,640 4.04% 15.874 – 2b/1b1 – 1b/1b
3/1/19
Averages 14 11,254 11,070 $4,370,833 $320,058 $207,487 3.96% 15.40
1 2828 E 6th St. 9 1960 6,008 6,751 $3,250,000 $361,111 $151,016 4.65% 14.68 5 - 2b/1b3 - 1b/1b1 – 0b/1b
n/a
PG 17
LONG
BEACH
PROJECT
ROSE PARK
Class A Rent Comps as of March 2019
(within 2 miles of subject property)
Average Rent by Unit Class and Type
CLASS A
ANDERSON COMMERCIAL
2828 E 6th Street | [email protected]
New apartment supply has been largely limited to the Class-A segment, causing a shortage of mid-priced rental housing, which has hindered further household creation by middle income tenants.
S T U D I O
$2,679
1 B E D R O O M
$3,180
2 B E D R O O M
$4,497
PG 19
#9 Fastest Gentrifying US cities
- Realtor.com
LONG BEACH
MARKET TRAJECTORY
SIGNIFICANT
REVITALIZATION
Sunset Magazine's coolest SoCal
beach community, Long Beach is
an eclectic, approachable, and
progressive city bustling with
opportunity. Long Beach currently
has (including planned projects)
over $5 billion in private
investment stemming from real
estate development
ANDERSON COMMERCIAL
2828 E 6th Street | [email protected]
Long Beach is ranked Top 10 in the US in the following categories:
SoCal’s Coolest Beach Town
- Sunset Magazine (2016)
Most livable cities for those under the age of 35
- #8 by Vocativ
10th in America for Top Places for Freelancers
Based on rent, health insurance and cell phone costs as sourced by NerdWallet.
Digital City
For sixth consecutive year, by the Center for Digital Government’s Digital Communities program.
Most Walkable Cities in Nation
DTLB earns highest score within city. Long Beach is one of the ten most walkable cities in the entire nation according to Walk Score.
Best Airports in the U.S.
- Condé Nast Travel 2016 Readers' Choice Award (#7):
Most beautiful airports in the world, the only U.S. site to make the list - BBC
Long Beach Airport was named the best airport for dining in a 10best.com readers’ choice poll sponsored byUSA today.
PG 20
LONG BEACH
MARKET TRAJECTORY
(continued)
A SENSE OF PLACE
• Concentration of tech, media, advertising, engineers, healthcare, government and skilled blue-collar workers, artists, university students and a vibrant LGBTQ community.
• Long Beach truly is a great city to live, work, play, obtain an education and to stay and grow.
DEMAND OUTPACING SUPPLY
• Long Beach (including the South Bay) has a job base of 550,000 workers, and a population of 760,000 people. The ratio of population to upscale apartment units is 800:1 – there is only one modern apartment unit for every 800 people.
▪ For comparison, the ratio in downtown LA is 23:1, and in Pasadena it’s 12:1.
GROWING AFFLUENT TENANT BASE
▪ Downtown Long Beach (DTLB) has seen a resurgence in total private employment, with a 6.5% year-over-year increase, surpassing the city-wide employment growth rate of 3.9% and is experiencing its lowest unemployment rate in more than 25 years.
▪ DTLB has growing incomes and higher buying power, with overall spending potential up by 67% since 2013.
▪ DTLB employees are among the highest paid in the entire city – workers in DTLB earn 31.3% more than those citywide, at an average of $67,800 annually. Average household income in the DTLB core is $71,169 and the median age is 40.
▪ DTLB has seen a population increase of 17%since 2010.
LARGE SCALE INVESTMENT
▪ Long Beach is in the middle of building a new $525 million Civic Center, the second world-class library in the span of two years and the new $1.5 billion Gerald Desmond bridge.
PG 21
Pocket neighborhoods like Rose Park have enjoyed visible improvement and value-enhancement, providing a long runway for investors seeking to outperform yields found in surrounding Coastal communities such as Huntington Beach, Seal Beach, or the South Bay.
An influx of creative talent and start-up firms seeking a lower cost, business friendly home within Southern California, has benefited Long Beach due to its proximity to the ocean, retail, TAMI employers, airport and freeways/transportation nodes. Investment in emerging trendy neighborhoods in costal Long Beach has grown significantly with asset prices impacted by high supply and demand imbalances, and properties are commanding premium rents and providing downside protection.
PG 22
The information contained in this document has been obtained from sources believed to be reliable. While the Anderson Real Estate Group does not doubt its
accuracy, the Anderson Real Estate Group has not verified it and makes no guarantee, warranty or representation about it and it is the responsibility of any
prospective purchaser to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates are used for example only and
do not represent the current or future performance of the property. The value of this transaction to any prospective purchaser depends on tax and other factors
which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to
determine to your satisfaction the suitability of the property for your needs. All marks displayed on this document are the property of their respective owners.
M AT T H E W F I R T [email protected]. #01903073
J A M E S K R I S [email protected]. #02017468
C O R N E L I U S M O R G A [email protected]. #02042591
Anderson Real Estate Group | LIC. # 01967292
2883 E Spring Street STE #260, Long Beach, CA 90806
AndersonREG.com/CRE
Keller Williams Pacific Estates | LIC. # 01917184
PRESENTED BY:
