7410€¦ · overview rent comparables contents 23 11 demographics sales comparables. 7410 woodman...

V A N N U Y S , C A 9 1 4 0 54 3 U N I T S

OFFERING MEMORANDUM

WOODMAN AVE7410

CONFIDENTIALITY AGREEMENT

The information contained herein is strictly

confidential. It is intended for the sole party

receiving it directly from Investment Real Estate

Associates, and should not be made available

to any other person without the direct consent

of Investment Real Estate Associates. This

marketing proposal has been prepared to provide

information to the prospective sellers. It does

not, however, purport to present all material

information regarding the subject property and it

is not a substitute for a thorough investigation by

the sellers.

Investment Real Estate Associates has not

made any investigation, and makes no warranty

or representation with respect to the financial

condition or business prospects of any tenant,

or any tenant’s plans or intentions to continue

or renew its occupancy of the subject property.

All market analysis projections are provided

for reference purposes only and are based on

assumptions relating to general market conditions,

competition and other various market indicators.

The information contained in this proposal

has been obtained from sources we believe to

be reliable; however, Investment Real Estate

Associates has not conducted any investigation

regarding these matters and makes no warranty or

representation whatsoever regarding the accuracy

or completeness of the information provided.

INVESTMENT REAL ESTATE ASSOCIATES

OFFICE16501 Ventura Blvd. Suite 448Encino, CA 91436Phone: 818.386.6888Fax: 818.386.2805

www.irea.com

David Leibowitz

Chris Thompson

EXCLUSIVE LISTING AGENTS

Partner(818) [email protected]

Senior Partner(818) [email protected]

I R E A

7410 WOODMAN AVE - IREA

5

17

9

13

Location

Financials

Overview

Rent Comparables

Contents

23

11

Demographics

Sales Comparables


• $130k/Unit

• $210/Sq. Ft.

• 8% Proforma CAP Rate

Woodman Ave

Vale

rio S

t

PROPERTY TYPE

ADDRESS

UNITS

BUILDING SIZE

LOT SIZE

PARKING SPACES

YEAR BUILT

APN

Multifamily Apartments

7410 Woodman Ave

Van Nuys, CA 91405

43 Units

26,920 SF

27,337 SF

40

1965

2328-035-005

OVERVIEW | 5

Overview

Vale

rio S

t

Favorable Unit MixDesirable unit mix

of studios, 1+1’s and 2+1.5’s

Tremendous Value-Add Potential

Over 60% upside in rents

On-Site ParkingControlled access,40 parking spaces

Individually MeteredGas and Electricity

individually metered

7410 WOODMAN AVE is a 43-unit, two-building apartment complex located two blocks north of Sherman Way on the northeast corner of Woodman Ave and Valerio St. in Van Nuys, CA.

7410 WOODMAN AVE was built in 1965 and consists of a 26,920 square foot, 1 and 3-story, wood-framed stucco building. The property offers a favorable unit mix of twenty-one singles, sixteen 1+1’s and six 2+1.5 units.

The building offers a pool that has been drained, but could be put back into use, on-site laundry, a security surveillance system and has controlled access gated entry along with 40 total parking spaces comprised of tuck-under and carport. It is individually metered for electricity and gas.

7410 WOODMAN AVE provides easy access to the US-101, 170, and 405 freeways. It is close to major employers in Burbank, Woodland Hills, and Glendale and is conveniently located near accredited schools, community parks and walkable shopping and restaurants.

7410 WOODMAN AVE is an excellent investment opportunity that offers solid appreciation potential and has over 60% potential upside in rents for value-add investors willing to renovate the property. This asset would be a great addition to any apartment portfolio as a stabilized investment.

THE OFFERING | 7THE INFORMATION PROVIDED HEREIN IS FROM SOURCES WE BELIEVE ARE RELIABLE. WHILE WE DO NOT DOUBT ITS ACCURACY, WE HAVE NOT VERIFIED IT AND MAKE NO REPRESENTATIONS, GUARANTEES OR WARRANTIES ABOUT IT.

The Offering


Property Year Built # of Units Single 1+1 2+1.5

11 7112 Woodman Ave 1986 38 $1,100 $1,450

Van Nuys, CA 91405

22 14400 Vose St 1979 38 $1,400

Van Nuys, CA 91405

33 7116 Woodman Ave 1986 38 $1,100

Van Nuys, CA 91405

44 7121 Woodman Ave 1963 15 $1,345

Van Nuys, CA 91405

55 14600 - 14608 Wyandotte St 1958 16 $1,450

Van Nuys, CA 91405

66 13218 Barbara Ann St 1963 27 $1,500

N Hollywood, CA 91605

77 6845 Hazeltine Ave 1936 19 $1,545

Van Nuys, CA 91405

88 13535 Valerio St 1978 120 $1,795

Van Nuys, CA 91405

99 13463 Vanowen St 1959 12 $1,795

Van Nuys, CA 91405

AVERAGES 1968 36 $1,236 $1,486 $1,795

SUBJECT (AVERAGES) 1965 43 $752 $884 $1,017

THE INFORMATION PROVIDED HEREIN IS FROM SOURCES WE BELIEVE ARE RELIABLE. WHILE WE DO NOT DOUBT ITS ACCURACY, WE HAVE NOT VERIFIED IT AND MAKE NO REPRESENTATIONS, GUARANTEES OR WARRANTIES ABOUT IT.

Rent Comparables Summary

7410 Woodman

Rent Comps

7112 Woodman Ave

14400 Vose St

7116 Woodman Ave

7121 Woodman Ave

14600 Wyandotte St

13218 Barbara Ann St

6845 Hazeltine Ave

13535 Valerio St

13463 Vanowen St

RENT COMPARABLES SUMMARY | 9

1

WOODMAN AVE7410


Property Year Built Sales Price# of Units

Price/Unit Gross SFAvg Gross

SF/UnitPrice/SF CAP Rate GRM COE

1 14725 Titus St 1963 $8,900,000 44 $202,273 52,912 1,203 $168 4.52% 11.81 03/06/20

Panorama City, CA 91402

2 14664 Roscoe Blvd 1958 $10,100,000 60 $168,333 32,239 537 $313 4.20% 13.64 12/20/19

Panorama City, CA 91402

3 14153 Victory Blvd 1977 $9,095,000 32 $284,219 21,284 665 $427 5.06% 13.96 09/27/19

Van Nuys, CA 91401

4 14630-14634 Gault St 1965 $3,300,000 18 $183,333 9,674 537 $341 5.85% 11.74 08/30/19

Van Nuys, CA 91405

5 7461 Hazeltine Ave 1962 $4,350,000 29 $150,000 19,028 656 $229 4.24% 13.00 03/29/19

Van Nuys, CA 91405

SALE AVERAGES 1964 $3,825,000 24 $166,667 14,351 597 $285 5.0% 12.4

SUBJECT 1965 $5,650,000 43 $131,395 26,920 626 $210 3.5% 13.0


Sales Comparables Summary

7410 Woodman

Sales Comps

14725 Titus St

14664 Roscoe Blvd

14153 Victory Blvd

14630 Gault St

7461 Hazeltine Ave

SALES COMPARABLES SUMMARY | 11

WOODMAN AVE7410


Price: $5,650,000 # of Units Unit Type Avg Rent Income Avg Rent Income Taxes: 1.2% of Price $67,800

Down Payment: $5,650,000 21 Single $752 $15,793 $1,150 $24,150 Insurance: $.40 per sq. ft. $10,768

Down Payment %: 100% 16 1+1 $884 $14,145 $1,450 $23,200 License & Fees: Actual $2,917

CAP Current: 3.5% 6 2+1.5 $1,017 $6,099 $1,750 $10,500 Utilities: Actual $60,775

GRM Current: 13.0 Repairs & Maintenance: Actual $22,785

CAP Market: 8.0% Total Rental Income: $36,037 $57,850 Payroll: Actual $15,076

GRM Market: 8.1 Laundry: $168 $168 Pest Control: Actual $875

Cost Per SF: $209.88 Trash: Actual $14,484

Cost Per Unit: $131,395 Total Monthly Income: $36,205 $58,018 On-Site Manager: Actual $16,428

Expenses Per Unit: $5,240 Off-Site Manager: 3% of GOI $12,643

Expenses Per SF: $8.37 Miscellaneous: Actual $750

Total Expenses: $225,301

PROPERTY ABSTRACT

Units: 43 Scheduled Gross Income: $434,458 $696,216

Year Built: 1965 Less Vacancy: 3.0% ($13,034) 3.0% ($20,886)

Lot SF: 27,337 Gross Operating Income: $421,424 $675,330

Building Gross SF: 26,920 Less Expenses: 53.5% ($225,301) 33.4% ($225,301)

Parking Spaces: 40 Net Operating Income: $196,123 $450,029

Pre-Tax Cash Flow: $196,123 $450,029

Percentage Return: 3.5% 8.0%

LOAN QUOTE AVAILABLE UPON REQUEST

ESTIMATED ANNUALIZED EXPENSESFINANCIAL INDICATORS SOURCE OF INCOME CURRENT MARKET

ESTIMATED ANNUALIZED OPERATING DATA: CURRENT MARKET

Financial Summary WOODMAN AVE7410


Expenses & Notes

Price: $5,650,000 # of Units Unit Type Avg Rent Income Avg Rent Income Taxes: 1.2% of Price $67,800

Down Payment: $5,650,000 21 Single $752 $15,793 $1,150 $24,150 Insurance: $.40 per sq. ft. $10,768

Down Payment %: 100% 16 1+1 $884 $14,145 $1,450 $23,200 License & Fees: Actual $2,917

CAP Current: 3.5% 6 2+1.5 $1,017 $6,099 $1,750 $10,500 Utilities: Actual $60,775

GRM Current: 13.0 Repairs & Maintenance: Actual $22,785

CAP Market: 8.0% Total Rental Income: $36,037 $57,850 Payroll: Actual $15,076

GRM Market: 8.1 Laundry: $168 $168 Pest Control: Actual $875

Cost Per SF: $209.88 Trash: Actual $14,484

Cost Per Unit: $131,395 Total Monthly Income: $36,205 $58,018 On-Site Manager: Actual $16,428

Expenses Per Unit: $5,240 Off-Site Manager: 3% of GOI $12,643

Expenses Per SF: $8.37 Miscellaneous: Actual $750

Total Expenses: $225,301

PROPERTY ABSTRACT

Units: 43 Scheduled Gross Income: $434,458 $696,216

Year Built: 1965 Less Vacancy: 3.0% ($13,034) 3.0% ($20,886)

Lot SF: 27,337 Gross Operating Income: $421,424 $675,330

Building Gross SF: 26,920 Less Expenses: 53.5% ($225,301) 33.4% ($225,301)

Parking Spaces: 46 Net Operating Income: $196,123 $450,029

Pre-Tax Cash Flow: $196,123 $450,029

Percentage Return: 3.5% 8.0%

LOAN QUOTE AVAILABLE UPON REQUEST

ESTIMATED ANNUALIZED EXPENSESFINANCIAL INDICATORS SOURCE OF INCOME CURRENT MARKET

ESTIMATED ANNUALIZED OPERATING DATA: CURRENT MARKET

FINANCIALS | 13

THE INFORMATION PROVIDED HEREIN IS FROM SOURCES WE BELIEVE ARE RELIABLE. WHILE WE DO NOT DOUBT ITS ACCURACY, WE HAVE NOT VERIFIED IT AND MAKE NO REPRESENTATIONS, GUARANTEES OR WARRANTIES ABOUT IT.7410 WOODMAN AVE - IREA

Rent Roll

CURRENT MARKET CURRENT MARKET

UNIT TYPE RENT RENT UNIT TYPE RENT RENT

101 1+1 $1,082 $1,450 211 2+1.5 $927 $1,750

102 Single $743 $1,150 212 1+1 $1,200 $1,450

103 Single $900 $1,150 213 1+1 $737 $1,450

104 Single $743 $1,150 214 Single $876 $1,150

105 1+1 $843 $1,450 215 Single $773 $1,150

106(Mgr) 2+1.5 $1,350 $1,750 216 Single $876 $1,150

107 Single $900 $1,150 217 Single $689 $1,150

108 Single $662 $1,150 218 1+1 $1,082 $1,450

109 Single $689 $1,150 301 2+1.5 $927 $1,750

110 Single $710 $1,150 302 Single $710 $1,150

111 1+1 $843 $1,450 303 Single $689 $1,150

112 Storage 304 Single $876 $1,150

201 2+1.5 $927 $1,750 305 1+1 $843 $1,450

202 Single $689 $1,150 306 2+1.5 $1,041 $1,750

203 Single $689 $1,150 307 2+1.5 $927 $1,750

204 Single $764 $1,150 308 1+1 $955 $1,450

205 1+1 $723 $1,450 309 1+1 $801 $1,450

206 1+1 $735 $1,450 310 Single $743 $1,150

207 1+1 $819 $1,450 311 Single $876 $1,150

208 1+1 $737 $1,450 312 Single $599 $1,150

209 1+1 $1,082 $1,450 313 Single $599 $1,150

210 1+1 $927 $1,450 314 1+1 $737 $1,450

Monthly Rent:

Annual Rent:

$36,037

$432,442

WOODMAN AVE7410

RENT ROLL | 15

near Van Nuys — Los Angeles

1 of 1

00 11 2 km2 km

Sherman Oaks Galleria

Clic

k he

re to

get

the

map

in P

DF

Clic

k he

re to

get

the

map

in T

IF


WO

OD

MA

N A

VE

WOODMAN AVE7410

WOODMAN AVE7410

near Van Nuys — Los Angeles

1 of 1

00 11 2 km2 km

LOCATION | 17

Los Angeles Valley College

Sherman Oaks Galleria

Westfield Fashion Square

Location

WOODMAN AVE7410

Kaiser Permanente Center

VAN NUYS AUTO ROW

VAN NUYS BUS TERMINAL

RED LINE

NORTH HOLLYWOOD STATION

SAN FERNANDO VALLEY VISTA

LAKE BALBOA PARK

VAN NUYS BOULEVARD

VAN NUYS CITY HALL

GREAT WALL OF LOS ANGELES | MURAL MILE


THE HEART OF THE VALLEY

VAN NUYS, CA | 19

JAPANESE GARDENS

VAN NUYS AIRPORT

Van Nuys is the central hub of the South San Fernando Valley. Neighboring North Hollywood, Sherman Oaks, Studio City, Encino and Panorama City, the core of Van Nuys has a growing and highly diverse population. Van Nuys spans over 8.99 square miles and has a diverse residential feel with simple homes and a thriving Hispanic heritage. General stores, Latino bodegas and suburban neighborhoods with seventies-style architecture are at the heart of this city.

“In Van Nuys you won’t find warehouse-turned-art-lofts or expansive green spaces. Instead you’ll find adobe-colored single-story homes, south of the border flavors and boulevards shaded by palms.”* The city connects to North Hollywood or Downtown LA in a matter of minutes via the Orange Line & Red Line which are two regional Metro hubs for the San Fernando Valley. The 405 and the 101 freeways are also within minutes for residents, making it a central location for living and commuting.

Once referred to as “America’s Suburb,” the streets of Van Nuys have endless rectangular lots, trimmed lawns, retro buildings, diners, street vendors and thrift markets. Single-family home prices are also on average more affordable compared to neighboring cities in the San Fernando Valley. $497,173 is the median home value in Van Nuys, which is is significantly less than the San Fernando Valley median home value of about $600,000. In addition to a solid residential community, Van Nuys attracts car buyers from all over Los Angeles with countless car dealerships such as Keyes that line Van Nuys Boulevard. * https://www.airbnb.com/locations/los-angeles/van-nuys

LAKE BALBOA PARK

SOUND CITY STUDIOS

VALLEY PRESBYTERIAN

WOODMAN AVE7410

VALERIO ST

WO

OD

MA

N A

VE


Van Nuys Highlights

VAN NUYS HIGHLIGHTS | 21

The Plant

• 2 miles from the property• 37 stores with 367,799 square feet of gross land area• Anchor tenants are The Home Depot, Regency Theatres,

Babies R Us, and Ross Dress for Less

Bob Hope Airport - Burbank, CA

• BUR has over 70 daily flights to regional, domestic and foreign destinations

• 12,440+ employees• Annual Economic Impact: $1.8 billion annually; supported

~3.9 million passengers in 2015

Westfield Fashion Square - Sherman Oaks

• 147 stores, over 850,000 squaree feet of GLA• Anchor tenants are Macy’s, Bloomingdale’s, Apple, Zara,

Forever 21, and Z Gallerie

Van Nuys is economically diverse and consists of numerous businesses and industries. The city is home to the Van Nuys Airport, the Valley Municipal Building and is the only neighborhood in the SFV that exceeds 100,000 residents. The top industries employing the Van Nuys area are science/tech services, retail, health care, finance and construction.

• Efficient transportation - close to Van Nuys and Burbank Airports & Orange/Red Metro lines

• 13,220 businesses & 117,025 employees within 3 miles• Affordable housing and rents• Close proximity to North Hollywood, Sherman Oaks,

Studio City, Burbank, Encino, Glendale and Downtown LA

• Steady economic growth

É

ECONOMICSCITY HIGHLIGHTS

RETAIL & LEISURE NEARBY ATTRACTIONS

Van Nuys Airport

• Van Nuys Airport (VNY) is one of the busiest general aviation airports in the world. With two parallel runways, Van Nuys Airport handled approximately 217,000 aircraft movements in 2015

• Covers 725 acres and has two runways


The city of Van Nuys is located in the San Fernando Valley and is most known for being an affordable, predominantly hispanic suburban pocket just north of Sherman Oaks. With the 405 and 101 Freeways bordering the city, Van Nuys is also home to the Van Nuys Airport and is less than 20 minutes away from the Burbank Airport. As a whole, The Valley’s business industries lead in aerospace, motion pictures, television production and music recording. With such a large business network of over 70,000 businesses, if The Valley were a combined city it would be the 5th largest in the United States, bigger than Philadelphia, Phoenix and San Antonio.

LOCATION & PROJECTED GROWTH THE NUMBERS

* Projected

Total Population

2010

2019

2024*

Growth Rate (2019-2024)

Total Households

2010

2019

2024*

Growth Rate (2019-2024)

Average Household Income

2019

2024*

Projected Growth Rate

Renter Occupied Housing Units

2010

2019

2024*

Median Home ValueU.S. Median Home Value

733,230

757,303

774,284

2.2%

235,195

244,354

249,188

1.9%

$89,061

$105,927

15.9%

136,393

146,169

148,374

$584,600$207,344


Demographic and Income Profile7410 Woodman Ave, Van Nuys, California, 91405 Prepared by EsriRing: 5 mile radius Latitude: 34.20504

Longitude: -118.43122

Summary Census 2010 2019 2024Population 723,230 757,303 774,284Households 235,195 244,354 249,188Families 155,415 161,540 164,918Average Household Size 3.05 3.08 3.08Owner Occupied Housing Units 98,802 98,185 100,814Renter Occupied Housing Units 136,393 146,169 148,374Median Age 33.7 34.9 36.1

Trends: 2019 - 2024 Annual Rate Area State NationalPopulation 0.44% 0.67% 0.77%Households 0.39% 0.62% 0.75%Families 0.41% 0.62% 0.68%Owner HHs 0.53% 0.79% 0.92%Median Household Income 3.90% 2.99% 2.70%

2019 2024 Households by Income Number Percent Number Percent

<$15,000 24,905 10.2% 20,458 8.2%$15,000 - $24,999 23,279 9.5% 18,712 7.5%$25,000 - $34,999 21,101 8.6% 18,049 7.2%$35,000 - $49,999 30,253 12.4% 26,979 10.8%$50,000 - $74,999 43,076 17.6% 42,111 16.9%$75,000 - $99,999 30,288 12.4% 32,478 13.0%$100,000 - $149,999 35,892 14.7% 42,323 17.0%$150,000 - $199,999 15,981 6.5% 21,992 8.8%$200,000+ 19,578 8.0% 26,084 10.5%

Median Household Income $60,780 $73,582Average Household Income $89,061 $105,927Per Capita Income $28,687 $34,030

Census 2010 2019 2024 Population by Age Number Percent Number Percent Number Percent

0 - 4 51,457 7.1% 49,594 6.5% 50,496 6.5%5 - 9 47,077 6.5% 48,405 6.4% 46,129 6.0%10 - 14 48,497 6.7% 48,344 6.4% 46,876 6.1%15 - 19 52,245 7.2% 47,241 6.2% 45,282 5.8%20 - 24 55,686 7.7% 55,962 7.4% 52,455 6.8%25 - 34 121,562 16.8% 129,800 17.1% 132,913 17.2%35 - 44 111,203 15.4% 109,354 14.4% 116,833 15.1%45 - 54 97,539 13.5% 96,541 12.7% 95,177 12.3%55 - 64 69,579 9.6% 82,807 10.9% 84,789 11.0%65 - 74 36,197 5.0% 53,287 7.0% 60,621 7.8%75 - 84 21,827 3.0% 24,641 3.3% 30,900 4.0%

85+ 10,361 1.4% 11,328 1.5% 11,813 1.5%Census 2010 2019 2024

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 404,513 55.9% 410,484 54.2% 416,131 53.7%Black Alone 30,004 4.1% 29,959 4.0% 29,759 3.8%American Indian Alone 5,030 0.7% 5,037 0.7% 5,046 0.7%Asian Alone 58,873 8.1% 68,429 9.0% 73,805 9.5%Pacific Islander Alone 938 0.1% 996 0.1% 1,004 0.1%Some Other Race Alone 190,897 26.4% 205,091 27.1% 209,571 27.1%Two or More Races 32,975 4.6% 37,307 4.9% 38,969 5.0%

Hispanic Origin (Any Race) 402,374 55.6% 431,988 57.0% 448,310 57.9%Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2019 and 2024.

April 16, 2020

©2020 Esri Page 1 of 2

DEMOGRAPHICS (5-mile radius)

Demographics

KEY FACTS

757,303Population

3.1

Average Household Size

34.9

Median Age

$89,061Average Household

Income

EDUCATION

23%

No High School

Diploma 22%High School

Graduate

25%Some College 30%

Bachelor's/Grad/Prof Degree

BUSINESS

33,496Total Businesses

257,381Total Employees

EMPLOYMENT

57%White Collar

22%Blue Collar

20%Services

6.6%

Unemployment Rate

INCOME

$60,780

Median Household Income

$28,687

Per Capita Income

$44,180

Median Net Worth

Households By IncomeThe largest group: $50,000 - $74,999 (17.6%)

The smallest group: $150,000 - $199,999 (6.5%)

Indicator Value Difference

<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

10.2%

$75,000 - $99,999

9.5%

$100,000 - $149,999

8.6%

$150,000 - $199,999

12.4%

$200,000+

17.6%

-0.2%

12.4%

+1.0%

14.7%

+0.8%

6.5%

+1.1%

8.0%

+1.1%

+0.2%

-1.1%

-1.2%

-1.8%

Bars show deviation from

Los Angeles County

WOODMAN AVE7410

DEMOGRAPHICS | 23

16501 Ventura Blvd. Suite 448Encino, CA 91436Phone: 818.386.6888Fax: 818.386.2805

www.irea.com

David Leibowitz Chris ThompsonPartner(818) [email protected]

Senior Partner(818) [email protected] AVE

7410

7410€¦ · overview rent comparables contents 23 11 demographics sales comparables. 7410 woodman...

Documents