30 units in koreatown 220 s. catalina st, los …...12 220 s. catalina st, los angeles, ca 90004...

30 UNITS IN KOREATOWN 220 S. CATALINA ST, LOS ANGELES, CA 90004

02 220 S. CATALINA ST, LOS ANGELES, CA 90004

220 S. CATALINA ST

TABLE OF CONTENTS

SECTION

Property Overview

Financial Analysis

Location Overview

01

02

03

Johnny CleatorSenior Associate(310) 340-1299

CONTACT INFORMATION

Tom JonssonDirector(424) 325-2621

Will JamesDirector(424) 325-2610

03 CONTACT JOHNNY CLEATOR

Street Address Number of Units Parking

City Number of Buildings Zoning

State Number of Stories Unit Mix

Zip Code Water

APN Electric

Rentable Square Feet Gas

Lot Size Construction

Year Built Roof

220 S. Catalina St Street

Los Angeles R3

CA (2) Bachelors(26) Singles

(2) 1 Bed / 1 Bath90004 Master-Metered

5518-022-004 Master-Metered

Master-Metered

Wood-Frame Stucco

1926 Flat

SECTION 1

PROPERTY OVERVIEW

* Due to a covenant on title, 11 units at this property are subject to affordable housing restrictions. Units 7, 10, 28, 35, 39 are restricted to “Low Income” market rent limits ($1,261 for 2020) & units 1,2,6,9,20,30 are restricted to “Very Low Income” market rent limits ($966 for 2020). The Affordable Housing Group releases the maximum allowable rents & income limits each year. The covenant expires in 2039.

30

1

3

14,994 SF

8,381 SF

mailto:johnny%40jamescapitaladvisors.com?subject=220%20S.%20Catalina%20St%20-%20Los%20Angeles%2C%20CA


SECTION 1

PROPERTY OVERVIEW

Significant Rental Upside

Some units are rented below market. The location of the subject property supports historical strong rent growth, which will increase the total income in the future.

Located in a Potential Qualified Opportunity Zone

This will allow for additional tax incentives per the Tax Cuts and Jobs Act of 2017.

On-Site Laundry - Two (2) Washers & Two (2) Dryers

There are two (2) washers and (2) dryers on-site for tenant use and additional owner income.

New Landscaping

The landscaping and front entryway of the building have been completely replaced, creating a better living community for tenants and stronger curb appeal.

Upgraded Common Areas

New lighting and paint has been added to the interior hallways of the property. There are also new mailboxes for tenant use.

* Due to a covenant on title, 11 units at this property are subject to affordable housing restrictions. Units 7, 10, 28, 35, and 39 are restricted to “Low Income” market rent limits ($1,261 for 2020) and units 1,2,6,9,20, and 30 are restricted to “Very Low Income” market rent limits ($966 for 2020). The Affordable Housing Group releases the maximum allowable rents and income limits each year. The covenant expires in 2039.



SECTION 1

property OVERVIEW


SECTION 1

property OVERVIEW

Unit InteriorUnits include a variety of different layouts and plans.

Modern BathroomsUnits include modern style bathrooms complete with cabinets and windows.


SECTION 1

property OVERVIEW

Property HallwayThe photo highlights the hallway of the building on the first floor.

On-Site LaundryThe building includes (2) washers and (2) dryers on site for tenant use.


Price Cap Rate

Price per Unit GRM

Price per Square Foot Net Operating Income$353.14

CURRENT PRO FORMA

4.01% 4.81%

12.96 11.59

SECTION 2

FINANCIAL ANALYSIS

$5,295,000

$176,500

$212,272 $254,540

$5,295,000



Down Payment

Loan Amount

Interest Rate

Amortization / Fixed Period

Term

* Contact our financing team for a custom quote

$2,065,050 (39%)

$3,229,950

3.35%

30-Year / 5-Year

360 Month

Debt Service

Pre-Tax Cash Flow

Principle Reduction

Total Return

CURRENT

-$170,818

$41,454

-$63,585

$105,039

PRO FORMA

-$170,818

$83,722

-$63,585

$147,307

(4.05%)

(7.13%)

(2.01%)

(5.09%)

SECTION 2

FINANCIAL ANALYSIS


INCOME

Base Rental Income

Additional Income

Gross Potential Income

Vacancy Allowance

Effective Gross Income

Operating Expenses

Net Operating Income

EXPENSE

Property Taxes (1.20%)

Insurance (2020 Actual)

Electric (2020 Actual)

Water (2020 Actual)

Gas (2020 Actual)

Repairs & Maintenance ($600/unit)

Off-Site Management Fee (3.5%)

Payroll (2020 Actual)

Rubbish (2020 Actual)

Pest Control (Estimated)

Janitorial (Estimated)

Direct Assessments (2020 Actual)

Miscelleaneous ($100/unit)

Reserves ($150/unit)

Operating Expenses

(5%)

(42%)

(5%)

(46%)

ANNUAL ANNUAL

SECTION 2

FINANCIAL ANALYSIS

CURRENT

$408,537

$3,600

$412,137

$20,427

$391,710

$179,439

$212,272

CURRENT

$63,540

$11,890

$19,320

$17,580

$4,025

$18,000

$13,710

$12,486

$8,398

$500

$1,800

$1,190

$2,500

$4,500

$179,439

PRO FORMA

$457,032

$3,600

$460,632

$22,852

$437,780

$183,240

$254,540

PRO FORMA

$63,540

$11,890

$19,320

$17,580

$4,025

$18,000

$17,511

$12,486

$8,398

$500

$1,800

$1,190

$2,500

$4,500

$183,240



SECTION 2

FINANCIAL ANALYSIS

UNIT #

01

02

03

04

05

06

07

08

09

10

20

21

22

23

24

25

26

27

28

TENANT TYPE

Very Low Income

Very Low Income

-

-

-

Very Low Income

Low Income

-

Very Low Income

Low Income

Very Low Income

-

-

-

-

-

Manager

-

UNIT TYPE

Single

Single

Single

Single

Single

Single

Single

Single

Single

Single

Single

Single

Single

Single

Single

Single

1 Bed / 1 Bath

Single

Bachelor

RENT

$856

$879

$1,336

$1,009

$1,360

$807

$1,084

$1,227

$856

$1,195

$855

$1,320

$1,031

$1,335

$1,295

$1,255

$1,550

$1,330

$1,024

RENT

$966

$966

$1,350

$1,350

$1,350

$966

$1,261

$1,350

$966

$1,261

$966

$1,350

$1,350

$1,350

$1,350

$1,350

$1,595

$1,350

$1,261

PRO FORMA

UNIT #

29

30

31

32

33

34

35

36

37

38

39

TENANT TYPE

-

Very Low Income

-

-

-

-

Low Income

-

-

-

Low Income

UNIT TYPE

Single

Single

Single

Single

Single

Single

Single

1 Bed 1 Bath

Single

Bachelor

Single

RENT

$1,310

$856

$1,320

$1,310

$1,320

$1,031

$893

$1,515

$1,264

$729

$894

RENT

$1,350

$966

$1,350

$1,350

$1,350

$1,350

$1,261

$1,595

$1,350

$1,195

$1,261

PRO FORMA

TOTAL $38,086$34,045


SECTION 2

FINANCIAL ANALYSIS

* Due to a covenant on title, 11 units at this property are subject to affordable housing restrictions. Units 7, 10, 28, 35, and 39 are restricted to “Low Income” market rent limits ($1,261 for 2020) and units 1,2,6,9,20, and 30 are restricted to “Very Low Income” market rent limits ($966 for 2020). The Affordable Housing Group releases the maximum allowable rents and income limits each year. The covenant expires in 2039.


SECTION 3

LOCATION OVERVIEW

Koreatown

Koreatown has recently emerged as one of Los Angeles’s most desirable neighborhoods. It’s proximity to Downtown, Hollywood, and the West side make it attractive for residents and employers alike. Already the densest neighborhood in Los Angeles, Koreatown has seen a tremendous amount of new development along with buzzing retail and entertainment establishments along the Wilshire corridor. The demographics and dynamics of the community have made Koreatown a hotbed for hotels, office, and multifamily. Koreatown is one of the most diverse neighborhoods in Los Angeles. Encompassing roughly 3 square miles, the area was once the epi-center of Golden Age Hollywood, home to the Ambassador Hotel, the Coconut Grove and the Brown Derby.

The primary factor driving developers to build in Koreatown is its close proximity to Downtown Los Angeles and its central location near transit. With nearly 1,900 residential units now under construction according to CoStar Market Analytics, sizable proposals continue to work their way through the entitlement process. Koreatown continues to flourish with modern architectural design and has been attracting more population to the city. Being the center of entertainment, it has the upside of having all of the conveniences of lifestyle amenities when it comes to the latest foods, desserts, and nightlife.


SECTION 3

LOCATION OVERVIEW

Downtown Los Angeles

Los Angeles is the entertainment capital of the world and second-largest city in the United States. The LA metropolitan area is nearly 13 million residents. The subject property is located just 4 miles from LA Live & Staples Center.

Easy Access to Public Transportation

The Vermont / Beverly Metro Station is located less than a mile from the subject property, offering tenants quick access to Downtown Los Angeles and various other destinations.

One Mile from Southwestern Law School

Southwestern Law School is private law school that is accredited by the American Bar Association and enrolls 870 students.

One Mile from Los Angeles City College

The Los Angeles City College has served as a staples in the community for over 90 years and enrolls nearly 21,000 students.

Less than Four Miles from The Grove

The Grove delivers a dynamic shopping experience unlike any other in LA. Nordstrom, Apple, Gap, and numerous other retailers and eateries are located at The Grove.

10 Minutes from Dodger Stadium

Dodger Stadium, located in the surrounding area of the subject property, is a top attraction in Los Angeles and has capacity for 56,000 fans.


SECTION 3

LOCATION OVERVIEW


SECTION 3

LOCATION OVERVIEW

1. Wilshire / Vermont Station13 Min Walk0.6 Miles From Subject Property

2. Vons07 Min Walk0.4 Miles From Subject Property

3. Ralphs08 Min Walk0.4 Miles From Subject Property

4. Galleria Market10 Min Walk0.5 Miles From Subject Property

5. Virgil Middle School11 Min Walk0.5 Miles From Subject Property

6. Frank Del Olmo Elementary School07 Min Walk0.3 Miles From Subject Property Walk Score: 92

220 S. Catalina St, Los Angeles, CA 90004


SECTION 3

LOCATION OVERVIEW

1. STAPLES Center13 Min Drive3.2 Miles From Subject Property

2. Hollywood Walk of Fame11 Min Drive3.2 Miles From Subject Property

3. The Grove13 Min Drive3.8 Miles From Subject Property

4. Dodger Stadium3.8 Min Drive13 Miles From Subject Property

5. Walt Disney Concert Hall12 Min Drive3.3 Miles From Subject Property

6. Griffith Observatory19 Min Drive4.9 Miles From Subject Property


SECTION 3

LOCATION OVERVIEW

STAPLES Center

Staples Center is a multi-purpose arena home to the Los Angeles Lakers and other professional teams. STAPLES Center is also host to over 250 events and nearly 4 million guests each year.

Dodger Stadium

Dodger Stadium is a baseball park and home stadium of Major League Baseball’s Los Angeles Dodgers. Opened 59 years ago on April 10, 1962, the stadium fits more than 56,000 visitors.

Hollywood Walk of Fame

The Hollywood Walk of Fame comprises more than 2,690 five-pointed terrazzo and brass stars embedded in the sidewalks along 15 blocks of Hollywood Blvd and three blocks of Vine St.

Walt Disney Concert Hall

The Walt Disney Concert Hall is the fourth hall of the Los Angeles Music Center. It seats 2,265 people and serves, among other purposes, as the home of the Los Angeles Philharmonic orchestra.

The Grove

The Grove is a retail and entertainment complex located on parts of the historic Farmers Market. The 575,000-square-foot outdoor marketplace is located in Los Angeles’ Fairfax District.

Griffith Observatory

Griffith Observatory is a facility sitting on the south-facing slope of Mount Hollywood in Los Angeles’ Griffith Park. It commands a view of the Los Angeles Basin.

01

04

02

05

03

06

01


POPULATION

HOUSEHOLDS

Growth ‘10 - ‘20

Growth ‘10 - ‘20

Average Income

Median Income

Growth ‘20 - ‘25

Growth ‘20 - ‘25

2010 Census

2010 Census

2020 Estimate

2020 Estimate

2025 Projection

2025 Projection

1-Mile

1-Mile

3-Mile

3-Mile

5-Mile

5-Mile

9.33%

8.60%

8.11%

9.26%

7.65%

8.04%

2.19%

2.09%

2.00%

2.19%

1.92%

1.99%

SECTION 3

LOCATION OVERVIEW

117,706 594,252 1,143,026

128,692 642,458 1,230,503

131,511 655,284 1,254,111

$51,743

$37,611

$65,773

$41,104

$70,401

$44,546

45,226 228,484 432,779

49,116 249,646 467,556

50,142 255,105 476,875

@jamescapitaladvisors21 www.jamescapitaladvisors.com

JAMES CAPITAL ADVISORS, INC.

DISCLAIMER

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

https://jamescapitaladvisors.com/

22 Request More Info | Submit Offer

JAMES CAPITAL ADVISORS, INC.

CONTACT INFORMATION

LISTING AGENTS

TomJonsson (424) 325-2621

[email protected] RE Lic. 01755842Director

WillJames (424) 325-2610

[email protected] RE Lic. 01734419Director

JohnnyCleatorSenior Associate

(310) [email protected] RE Lic. 01951437


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30 units in koreatown 220 s. catalina st, los …...12 220 s. catalina st, los angeles, ca 90004...

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