confidential offering memorandum · amber seo vice president 213.298.7838 mobile 213.385.4989...

CONFIDENTIAL OFFERING MEMORANDUM

3675 CRENSHAW BLVDLOS ANGELES, CA 90016

RETAIL AND BUSINESS FOR SALE

CONFIDENTIALITY AND DISCLAIMER

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. New Star Realty has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, New Star Realty has not verified, and will not verify, any of the information contained herein, nor has New Star Realty conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NON-ENDORSEMENT NOTICE

Newstar Realty is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of New Star Realty, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of New Star Realty, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR AGENT FOR MORE DETAILS.

AMBER SEOVice President 213.298.7838 Mobile213.385.4989 [email protected] # CA 02008733

JOSEPH MINVice President213.280.4989 Mobile213.385.4989 [email protected] # CA 01380749

NEW STAR REALTY3030 W. 8th. St. Suite 200.Los Angeles,CA 90005


PROPERTY OVERVIEW

EXECUTIVE SUMMARY

BUSINESS OVERVIEW

MARKET OVERVIEW

FINANCIAL OVERVIEW

LOCATION OVERVIEW

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TABLE OF CONTENT


INVESTMENT HIGHLIGHTS

• Building Size about 9,600 SF with about

4,600 SF Mezzanine and Second Floor

• Lot about 0.49 Acres (21,378 SF)

• HVAC and Abundant Parking Space

• High Traffic Count of 44,744 VPD on

Crenshaw Boulevard

• Walking Distance to Two Metro

Stations on Crenshaw Boulevard

• All Metro Constructinons Expected to

Complete by 2021

THE OFFERING

The property is located on 3675 Crenshaw Boulevard, Los Angeles, Californica. The building is about 9,600 SF. There is a mezzanine and second floor space, about 4,600 SF. The property consists of two LAC2 parcels about 0.49 acres in total.

There are two Metro stations, Exposition and Coliseum, on Crenshaw Boulevard accessible by foot. Metro Crenshaw Subway construction is expected to be completed by 2021.

This is a great opportunity for the buyer to update the property and increase its value, as well as a great investment due to the developments along Crenshaw Boulevard.

EXECUTIVE SUMMARY

THE BUSINESS, BEAUTY SUPPLY RETAIL- EBONY WIGS & BEAUTY SUPPLY CAN BE SOLD SEPARATELY FOR AN ASKING PRICE OF $1,500,000 INCLUDING INVENTORY. THE PROPERTY AND THE BUSINESS CAN BE SOLD TOGETHER OR SEPARATELY.

4 3675 CRENSHAW BLVD. LOS ANGELES , CA 90016

3675 CRENSHAW BLVD. LOS ANGELES, CA 90016


CRENSHAW BLVD / 44,744 VPD

OFFERING SUMMARY

Total Price $5,800,000

Property $4,300,000

Business $1,500,000

Address 3675 Crenshaw Blvd.Los Angeles, CA 90016

Sale Condition Sales Leaseback (Optional)

Property Type Retail

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ONLY BUSINESS INVESTMENT AT $1,500,000INCLUDING INVENTORY (2)

INCOME PROPERTY INVESTMENT AT $4,300,000 (2)

OWNER USE INVESTMENT AT $5,800,000 (1)

(1) With SBA 7(a) or 504 to a qualified buyer, SBA financing would be available For more information of a cash down and the loan to value, please contact listing agents.(2) Current lease agreement would be negotiated as buyer and seller’s desired return cash flow.

INVESTMENT OPTIONS

NEWSTAR REALTY 5

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PROPERTY OVERVIEW

Price $4,300,000

Address 3675 Crenshaw Blvd.Los Angeles, CA 90016

APN#s 5046-023-006, 5046-023-018

Price/ SF $447

Building SF +/- 9,600

Price/ Lot $201

Lot +/- 10,949 SF, +/- 10,429 SF Total +/- 21,378 SF, 0.49 AC

Property Type Retail

Zoning LAC2

Year Built 1941

Floors 1

Parking 45 (4.68 Spaces per 1,000 SF Leased)


PROPERTY SPECIFICATIONS

CR

EN

SHA

W B

LVD

W JEFFERSON BLVD

OBAMA BLVD


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SITE MAP

NEWSTAR REALTY 7

Ebony Wigs & Beauty Supply is one of the well-known and popular retailer shop in the Crenshaw area for more than 12 years and is loved by the community.

Even during the COVID-19 Pandemic, there is continuous business gross sales revenue such as $83,750 in June 2020.

Ebony Wigs & Beauty Supply can be sold separately for $1,500,000 including inventory.

The property and the business can be sold together or separately.

More detailed financial information available for qualifying buyer.

ABOUT EBONY WIGS & BEAUTY SUPPLY

BUSINESS OVERVIEW


RENT ROLL


CURRENT LEASE SUMMARY

The Seller has a lease agreement for their own business in the accounting purpose. If the commercial real estate is only sold separately, then this lease agreement may be modified by buyer and seller’s desire.

LEASE SUMMARY

Tenant Name Ebony Wigs & Beauty Supply

Gross Rent $15,000/ Month

Commencement Date 12/1/2018

Expiration Date 11/30/2028

Term of Options None

NNN Landlord Responsible

Buidling SF 9,600

Original Lease Term 10 Years

NEWSTAR REALTY 9

CASH FLOW

FINANCIAL OVERVIEW

PROFORMA INCOME SUMMARY

List Price $4,300,000

NOI $259,200

CAP Rate 6.03%

Building SF 9,600

Market Rent/SF $2.25

Minimum Rent $21,600/Month

NNN (Est. $0.5/SF) $4,800/Month

*Proforma cash flow - property only.


FINANCIAL ANALYSIS


INVESTMENT OVERVIEW

List Price $5,800,000

Cash Down $1,460,000

SBA Loan Amount $4,340,000

Downpayment 25%

LTV 75%

Estimated Loan Payment with NNN $29,514/Month

Cash-on-Cash Including Principle 18.5%

Estimated Cash Flow $15,000/Month

CURRENT LEASE SUMMARY

Offering 1: Owner Use Investment at $5,800,000

With SBA 7(a) or 504 to a qualified buyer, SBA financing would be available Proforma investment summary.

NEWSTAR REALTY 11

SALES COMPARABLES

MARKET OVERVIEW

SUBJECT PROPERTY

Sale Date N/A

Sale Price $4,300,000

Building SF 9,600

Price/SF $447

Land Area SF 21,378

$/SF Land Gross $201

Zoning LAC2

Year Built 1941

3629-3641 10TH AVE

Sale Date 11/14/2019


Building SF 16,849

Price/SF $531.86

Land Area SF 21,131

$/SF Land Gross $424.08

Zoning M1

Year Built 1947

3894 CRENSHAW BLVD

Sale Date 6/3/2020


Building SF 12,089

Price/SF $388.78

Land Area SF 24,311


Zoning LAC2

Year Built 1959

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SALES COMPARABLES


4242 CRENSHAW BLVD

Sale Date 11/01/2019


Building SF 7,656

Price/SF $509.40

Land Area SF 14,657


Zoning LAC1

Year Built 1941

4202-4212 W JEFFERSON BLVD

Sale Date 12/6/2019


Building SF 15,000

Price/SF $472.70

Land Area SF 17,424


Zoning M1

Year Built 1950

4801 W JEFFERSON BLVD

Sale Date 7/14/2020


Building SF 23,000

Price/SF $350.00

Land Area SF 12,632


Zoning LAM1

Year Built 1948

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NEWSTAR REALTY 13

ABOUT CRENSHAW

LOCATION OVERVIEW

THE CRENSHAW BOULEVARD COMMERCIAL CORRIDOR HAS HAD MANY DIFFERENT CULTURAL BACKGROUNDS THROUGHOUT THE YEARS, BUT IT IS STILL "THE HEART OF AFRICAN AMERICAN COMMERCE IN LOS ANGELES"

Currently, there is a huge demographic shift increase in which many middle and lower-class blacks and Latinos are migrating to cities in the Inland Empire as well as cities in the Antelope Valley

sections of Southern California as a form of gentrification. The gentrification process continues into 2010's as the Crenshaw mall been approved for a major renovation plan that will include apartments, shops, and more restaurants.

The Metro Crenshaw LAX Line is an 8.5-mile light rail line that will "add eight new stations serving the Crenshaw neighborhood, Leimert Park, Inglewood, Westchester and surrounding areas" The line will run between the Expo/Crenshaw station and Aviation/96

Street station, transiting generally north-south along Crenshaw Boulevard.

As the current Metro Subway construction will be completed as soon as 2021, Crenshaw will be one of the widest boulevards in Los Angeles and be the center of all access points to neighboring counties in Southern California. This development will bring excellent business growth opportunity and increase real estate values for all current major national anchor businesses and nearby developments in the area.



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SHOPPING & PHARMACY

1 99 Cents Only Stores2 CVS Pharmacy3 Baldwin Hills Crenshaw4 Sears5 Macy's6 Staples7 Dollar Tree8 CVS Pharmacy9 Big 5 Sporting Goods10 Walgreens Pharmacy11 CVS Pharmacy12 Rite Aid Pharmacy13 The Home Depot14 Chesterfield Square15 Walgreens16 Big Lots

GROCERY STORES

1 Superior Grocers2 Smart & Final3 Albertsons4 Ralphs5 Numerous Uno Rancho6 Food 4 Less7 Ralphs8 Smart & Final9 Ralphs10 Food 4 Less11 El Super

FOOD & DRINKS

1 Denny's2 Wienerschnitzel3 El Pollo Loco4 Starbucks5 Burger King6 Taco Bell7 McDonald's8 Yoshinoya9 Buffalo Wild Wings10 Krispy Kreme11 Pizza Hut12 Wing Street13 McDonald's14 IHOP15 Wingstop16 McDonald's17 Popeyes Louisiana Kitchen

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910

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910

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83 WALK SCORE

Very Walkable

METRO STATIONEXPO/CRENSHAW

4 Min Walk / 0.2 Mile

METRO STATION FERNDALE

15 Min Walk / 0.7 Mile

COMMUTER RAILUNION STATION

14 Min Drive / 7.8 Mile

EXPO/CRENSHAW

FERDALE

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EXPO/WESTERN

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EXPO/LA BREA

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NEWSTAR REALTY 15

RETAIL MAP


8- unit apartments with 9 affordable units. About 3,900 square feet of ground-floor commercial space.

3518 CRENSHAW

NEAR BY DEVELOPMENTS

2

401-unit with 81 affordable units. 40,000 square feet for retail and 502 parking spaces.

CRENSHAW CROSSING

961 new condos and apartments, with a 400-room hotel, and new offices, restaurants, and retail space.

BALDWIN HILLS CRENSHAW PLAZA

5-story mixed-use apartment. 69-unit apartments with 6 affordable units — 52 parking spaces.

3600 STOCKER STREET

124 units apartments with 11 affordable units. 6,000 square feet of space for storefronts with 60 parking spaces.

4242 CRENSHAW

1.3-mile-long project, open-air museum will acknowledge the contributions of black Angelenos.

DESTINATION CRENSHAW

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DEMOGRAPHICS


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1 MILE RADIUS HIGHLIGHTS

1 - MILE 3 - MILE 5 - MILE

Population 45,669 383,691 1,264,510

Median Age 37 36 36

Households 17,275 128,835 450,975

Median Household Income $39,021 $46,502 $51,048

Average Household Income $59,248 $70,160 $77,202

45,669POPULATION

37MEDIAN AGE

HOUSEHOLDS$39,021

AVERAGE HOUSEHOLD INCOME

$59,248

NEWSTAR REALTY 17

confidential offering memorandum · amber seo vice president 213.298.7838 mobile 213.385.4989...

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