1320 n. martel avenue, los angeles, ca 90046 · 2019-03-26 · rent roll 1320 n. martel avenue, los...

MARTEL AVENUE APARTMENTS1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046

OFFERING MEMORANDUM

MARTEL AVENUE APARTMENTS / OFFERING MEMORANDUM

CONFIDENTIALITY AGREEMENT

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. 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.

1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046

MARTEL AVENUE APARTMENTS / OFFERING MEMORANDUM 2

LARRY CANNIZZARO Multi-family Specialist310.963.4870 | [email protected] #00609154

KRISTY ELAINE Multi-family Specialist310.880.2404 | [email protected] #01948906

KW COMMERCIAL DRE#01499010

EXECUTIVE SUMMARY1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046

1.


PROPERTY OVERVIEW

PROPERTY SUMMARY

ADDRESS 1320 N. Martel Avenue

CITY STATE ZIP Los Angeles, CA 90046

APN 5550-019-016

UNITS 7

BUILDING SIZE 5,678

LOT SIZE 6,650

YEAR BUILT 1955

ZONING LAR3

KW Commercial is proud to present a charming and well-maintained value-add asset,

located at 1320 N. Martel Avenue, just north of Fountain Avenue and west of La Brea Blvd.

This offering marks the property’s first time on the market in more than three decades.

This seven unit property featuring four vacant units including two end-cap two bedroom

units with generous private outdoor spaces, a courtyard view one bedroom unit, and an

upstairs studio apartment with an oversized balcony – all allowing for incredible upside

potential. This two-story access-controlled complex boasts an appealing unit mix,

abundant outdoor living spaces, an onsite laundry facility, four garages and additional

open space parking.

The acquisition of 1320 N. Martel Avenue represents an excellent opportunity to

strategically reposition a true a pride of ownership asset in a prime location. Straddling

the border of Hollywood and West Hollywood the property allows easy access to

employment hubs, major studios, tech and financial firms, as well as entertainment and

historical attractions. The tremendous influx of capital dedicated to the revitalization of

the Hollywood submarket continues to attract a resident base of young urban dwellers.

This new, hip client base has ushered in new development projects, restaurants, night

clubs, and retail opportunities, making Hollywood one of the more desirable submarkets

in the greater Los Angeles area.



THE OPPORTUNITY

4 OUT OF THE 7 UNITS ARE CURRENTLY VACANT

RARE VALUE-ADD INVESTMENT OPPORTUNITY IN THE HEART OF HOLLYWOOD

WITHIN BLOCKS OF WORLD-RENOWNED LANDMARKS AND AMENTIES




QUINTESSENTIAL TROPHY ASSET, IN AN EXCEPTIONAL HOLLYWOOD LOCATION

INCREDIBLE RENTAL UPSIDE POTENTIAL

OVER $7.6 BILLION IN DEVELOPMENT INVESTMENTS IN THE IMMEDIATE AREA

AERIAL VIEW 1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046


WISEMAN APARTMENTS

Recently ConstructedLuxury Apartments

SUBJECT PROPERTY

1320 N. MARTEL AVELos Angeles, CA 90046

EXTERIOR PHOTOS 1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046


INTERIOR PHOTOS 1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046


LOCATION MAP 1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046


HOLLYWOOD

WEST HOLLYWOOD

FINANCIAL ANALYSIS1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046

2.


RENT ROLL 1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046


Unit # Type Current Rent Market Rent Move-In Date Comments

1 1 BD + 1 BTH $1,691.41 $2,295.00 10/10/10

2 1 BD + 1 BTH $2,295.00 $2,295.00 Vacant/Projected Rate


4 2 BD + 1 BTH $1,974.29 $2,695.00 9/1/06

5 2 BD + 1 BTH $1,929.47 $2,695.00 10/1/09

6 SINGLE $1,695.00 $1,695.00 Vacant/Projected Rate


$15,375.18 $17,465Totals:

* Current figures based on projected rents for vacant units.

*

*

*

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PRICING FINANCING THE ASSET

Price $2,675,000 Down 100% $2,675,000 Units 7

Price/Unit $382,143 Loan 0% $0 Year Built 1955

Price/SF $471.12 Ammort Years 30 Gross SF 5,678

GRM 14.50 12.76 Interest Rate 4.25% Lot SF 6,650

Cap 4.37% 5.20% Payments $0 APN 5550-019-016

Current Market

MONTHLY RENT SCHEDULE

# of Units Type Avg.Current Current Total Market Market Total

1 SINGLE $1,695.00 $1,695 $1,695 $1,695

2 1 BD + 1 BTH $1,993.21 $3,986 $2,295 $4,590

4 2 BD + 1 BTH $2,423.44 $9,694 $2,795 $11,180

7 $15,375 $17,465

ANNUALIZED INCOME Current Market

Gross Potential Rent $184,502 $209,580

Less Vacancy 3% ($5,535) 3% ($6,287)

Laundry $1,200 $1,200

Scheduled Gross Income $180,167 $204,493

ANNUALIZED EXPENSES Current Market

Real Estate Taxes 1.193000% Actual $31,913 $31,913

Direct Assessments $962 $962

Insurance $2,478 $2,478

City Business License & Fees $475 $475

Utilities $3,482 $3,482

Rubbish Removal $3,215 $3,215

Pest Control $900 $900

Landscape $1,440 $1,440

Legal & Audit $500 $500

Miscellaneous $1,000 $1,000

Management 4% of SGI $7,207 $8,180

Repairs & Maint. 5% of SGI $9,008 $10,225

Reserves $100 /Unit /Year $700 $700

Total Expenses $63,280 $65,469

Expenses/Unit $9,040 $9,353

Expenses/SF $11.14 $11.53

% of EGI 35.12% 32.02%

RETURN Current Market

NOI $116,887 $139,023

Less Debt $0 $0

Cashflow $116,887 $139,023

Cash on Cash 4.37% 5.20%

Cash to New Loan

FINANCIAL OVERVIEW 1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046



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MARKET COMPARABLES1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046

2.


ADDRESS BUILT GROSS SF SALE DATE PRICE PRICE/UNIT PRICE/SF CAP GRM

1 848 N Hayworth Ave 1923 4,740 6 - 1/1 8/1/2018 $2,000,000 $333,333 $422 1.78% 22.85

Los Angeles, CA 90046

2 1047 N Stanley Ave 1959 7,854 8 - 1/1 7/5/2018 $3,075,000 $307,500 $392 3.50% 17.00

Los Angeles, CA 90046 2 - 2/2

3 1314-1320 N Formosa Ave 1922 3,840 8 - 1/1 12/6/2018 $1,700,000 $212,500 $443 2.78% 19.63


4 1319 Havenhurst Dr 1953 13,152 9 - 1/1 8/8/2018 $5,500,000 $392,857 $418 3.26% N/A


4 - 2/2

5 7407 Hollywood Blvd 1938 6,415 4 - 1/1 9/12/2018 $2,120,000 $353,333 $330 3.57% 17.57


6 7451 Hollywood Blvd 1950 11,494 6 - 1/1 9/12/2018 $3,895,000 $324,583 $339 3.46% 17.51


2 - 2/1.5

7 7504 Hollywood Blvd 1951 11,810 9 - 1/1 9/12/2018 $4,440,000 $370,000 $376 3.81% 16.30


AVERAGES 1941 7,916 $3,247,143 $327,730 $389 3.17% 18.48

S 1320 N. Martel Ave. 1955 5,678 1 - SINGLE $2,675,000 $382,143 $471 4.37% 14.50

Los Angeles, CA 90046 2 - 1 BD + 1 BTH

4 - 2 BD + 1 BTH

UNIT MIX

SALES COMPARABLES 1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046



* *

1.78%

3.50%

2.78%

3.26%3.57% 3.46%

3.81%

4.37%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

1 2 3 4 5 6 7 S

22.85

17.00

19.63

N/A

17.57 17.5116.30

14.50

0.00

5.00

10.00

15.00

20.00

25.00

1 2 3 4 5 6 7 S



PRICE/UNIT PRICE/SF

GRM CAP RATE


*

*

$333,333$307,500

$212,500

$392,857

$353,333$324,583

$370,000

$382,143

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

1 2 3 4 5 6 7 S

$422$392

$443$418

$330 $339

$376

$471

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

1 2 3 4 5 6 7 S



1 848 N Hayworth Ave

2 1047 N Stanley Ave

3 1314-1320 N Formosa Ave

4 1319 Havenhurst Dr

5 7407 Hollywood Blvd



S 1320 N. Martel Ave.

4 3

1

2

5

S

6

7

RENT COMPARABLES 1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046


ADDRESS TYPE UNIT SF RENT RENT/SF TYPE UNIT SF RENT RENT/SF TYPE UNIT SF RENT RENT/SF

1 840 N Alfred St Studio 840 $1,800 $2.14

West Hollywood, CA 90069

2 1122 N Gardner St Studio $1,800


3 1147 Hacienda Studio $1,850


4 1253 Havenhurst Dr Studio 460 $1,625 $3.53


5 1023 N Laurel Ave 1/1 680 $2,250 $3.31


6 1246 N Laurel Ave 1/1 700 $2,295 $3.28


7 1477 Havenhurst Dr 1/1 825 $2,350 $2.85


8 818 N Fuller Ave 2/1 700 $2,895 $4.14


9 912 N Genesee Ave 2/1 950 $2,750 $2.89


10 1227 N Hayworth Ave 2/1 900 $2,495 $2.77


11 8214 De Longpre Ave 2/1 1,300 $2,600 $2.00


AVERAGES 650 $1,769 $2.84 735 $2,298 $3.15 963 $2,685 $2.95

S 1320 N. Martel Ave. Studio $1,695.00 1/1 $1,993.21 2/1 $2,423.44


SINGLE ONE BEDROOM TWO BEDROOMS

* * *


43

1

2

5

S6

7

10

98

RENT COMPARABLES 1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046


1 840 N Alfred St

2 1122 N Gardner St

3 1147 Hacienda


5 1023 N Laurel Ave

6 1246 N Laurel Ave


8 818 N Fuller Ave

9 912 N Genesee Ave

10 1227 N Hayworth Ave

11 8214 De Longpre Ave

S 1320 N. Martel Ave.

11

LOCATION OVERVIEW1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046

4.


SUBMARKET OVERVIEW

HOLLYWOOD, CALIFORNIA

Located in a premier pedestrian location the asset benefits from easy access to employers, major studios, financial

firms, entertainment and historic attractions. Hollywood has seen a tremendous revitalization over the last decade.

An influx of capital dedicated to the revitalization of Hollywood has attracted a new resident base of young urban

dwellers. This new, hip client base has brought new restaurants, night clubs, and retail opportunities, making

Hollywood one of the more desirable submarkets in the greater Los Angeles area.

MULTIFAMILY MARKET

Nearly 84.2 percent of all Hollywood residents are currently renters. A significant portion of the population still falls

into key renter age groups. Younger age cohorts are expected to post solid growth over the next several years, which

bodes well for apartment owners.

Additionally, residents enjoy easy access to the 101 Freeway as well as a stop on the Metro Red Line. Beyond the city

limits, residents can quickly travel South to Orange County and San Diego and North to Ventura and Santa Barbara.



Located in a premier pedestrian location the asset

benefits from easy access to employers, major studios,

financial firms, entertainment and historic attractions.

AM

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SUBMARKET OVERVIEW


LOCAL AMENITIESThings to do in Hollywood include must-see shows and attractions,celebrity frequented restaurants, and world class hotels.Experience Tinseltown glamour at TCL Chinese Theatre or theHollywood Walk of Fame, which has honored celebrities for over 50years. The state-of-the-art Dolby Theatre is home to the AcademyAwards.

Universal Studios Hollywood is a world famous theme park thatincludes the mind-blowing “Transformers: The Ride 3-D.” Otherthings to do in Hollywood include the shops and restaurants atHollywood & Highland Center, or the delicious multiculturalcuisines of nearby Thai Town and Little Armenia.

ENTERTAINMENT HUBSearch for the best Hollywood hotels and start discovering theentertainment capital of the world. Hollywood & Highland is theentertainment center of Los Angeles for tourists and locals alike.Steps away from landmarks like the world famous Walk of Fameand TCL Chinese Theatre, formerly Grauman’s, Hollywood &Highland is the perfect place for a Hollywood beginning of nearbyThai Town and Little Armenia.

DISTINGUISHED RETAILERSWith world-class shopping and dining, red carpet movie premieresand celebrated live theatre it’s the ultimate entertainmentdestination Steeped in Hollywood history, this iconic destinationalso features the Dolby Theatre, home of the Academy Awards®and over 70 brand-name retailers from Louis Vuitton, L’Occitane,Victoria’s Secret and MAC to quintessential California stores likeGAP, Hot Topic, Oakley, Skechers and Lucky Brand Jeans. Visitorscan enjoy 25 full-service and fast-casual restaurants such as TheGrill on Hollywood, Hard Rock Cafe, Dave & Busters, TrastevereRistorante, California Pizza Kitchen, Cabo Wabo Cantina, andnightlife at Lucky Strike Lanes and OHM Nightclub.

LOCATION AMENITIES 1320 N. MARTEL AVENUE, LOS ANGELES, CA 90046


DEMOGRAPHICS



DAYTIME POPULATION981,023

MEDIAN AGE34.4

AVERAGE HH INCOME$65,458

BACHELOR’S +33%

MEDIAN HOME VALUE$887,700

RENTER OCCUPIED43.32%

EMPLOYER # OF EMPLOYEES

1 5,400

2 5,000

3 4,994

4 2,500

5 1,500

6 1,383

7 1,300

8 1,200

9 900

10 860

FREEWAYSUS 101

SR 2

TRANSPORTATIONHollywood & Vine

Hollywood & Highland

AIRPORTSLAX

Bob Hope


OFFERING MEMORANDUM

MARTEL AVENUE APARTMENTS / OFFERING MEMORANDUM

MARTEL AVENUE APARTMENTS

LARRY CANNIZZARO Multi-family Specialist310.963.4870 | [email protected] #00609154

KRISTY ELAINE Multi-family Specialist310.880.2404 | [email protected] #01948906

2701 Ocean Park Blvd #240 | Santa Monica, CA 90405 | KW COMMERCIAL DRE#01499010

1320 n. martel avenue, los angeles, ca 90046 · 2019-03-26 · rent roll 1320 n. martel avenue, los...

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