garvey center -...
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OFFERIN
G M
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RANDU
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10803 Garvey AvenueEl Monte CA 91733
Garvey Center
MIXED-USE COMMERCIAL PROPERTY
Garvey CenterCONTENTS
Thomas TheungBroker626-482-0652Lic: [email protected]
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility oferrors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent thecurrent or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
01 Executive Summary Executive Summary 5 Unit Mix Summary 7 Location Summary 8
02 Property Description Property Features 10 Aerial Map 12 Parcel Map 13 Location Map 14 Property Images 15
03 Rent Roll Rent Roll Commercial 20 Lease Expiration 21
04 Financial Analysis Income & Expense Analysis 23 Multiyear Cash Flow Assumptions 24 Cash Flow Analysis 25
05 Additional Information
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from Coldwell Banker and it should not be made available to any other person or entitywithout the written consent of Coldwell Banker. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such informationin the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offeringmemorandum. If you have no interest in the subject property, please promptly return this offering memorandum to ColdwellBanker. This offering memorandum has been prepared to provide summary, unverified financial and physical information toprospective purchasers, and to establish only a preliminary level of interest in the subject property. The information containedherein is not a substitute for a thorough due diligence investigation. Coldwell Banker has not made any investigation, and makesno warranty or representation with respect to the income or expenses for the subject property, the future projected financialperformance of the property, the size and square footage of the property and improvements, the presence of absence ofcontaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition ofthe improvements thereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions tocontinue its occupancy of the subject property. The information contained in this offering memorandum has been obtained fromsources we believe reliable; however, Coldwell Banker has not verified, and will not verify, any of the information contained herein,nor has Coldwell Banker conducted any investigation regarding these matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriatemeasures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses ofinvestigating the subject property.
Garvey Center Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER:
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT THE COLDWELL BANKER ADVISOR FOR MORE DETAILS.Copyright © 2017 CREOP, LLC. All Rights Reserved.
Garvey Center | Executive Sum
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Executive Summary
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Offering Summary
Unit Mix Summary
Location Summary
Demographics
Demographic Charts
Garvey Center Executive Summary | 05
OFFERING SUMMARYADDRESS 10803 Garvey Avenue El Monte CA
91733
COUNTY Los Angeles
MARKET Los Angeles County
SUBMARKET San Gabriel Valley
BUILDING SF 5,905
LAND SF 14,661 SF
YEAR BUILT 1938
YEAR RENOVATED 1940
APN 8580-026-027
OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARYOFFERING PRICE $1,200,000
PRICE PSF $203.22
OCCUPANCY 100.00 %
NOI (CURRENT) $68,479
CAP RATE (CURRENT) 5.71 %
CAP RATE (PRO FORMA) 6.05 %
GRM 14.17
PROPOSED FINANCINGLOAN 1
LOAN TYPE Fully Amortized
DOWN PAYMENT $1,200,000
LOAN AMOUNT $0
INTEREST RATE 0.00 %
ANNUAL DEBT SERVICE $0
LOAN TO VALUE 0 %
LOAN 2
LOAN TYPE Fully Amortized
DOWN PAYMENT $1,200,000
LOAN AMOUNT $0
INTEREST RATE 0.00 %
ANNUAL DEBT SERVICE $0
LOAN TO VALUE 0 %
LOAN 3
LOAN TYPE Fully Amortized
DOWN PAYMENT $1,200,000
LOAN AMOUNT $0
INTEREST RATE 0.00 %
ANNUAL DEBT SERVICE $0
LOAN TO VALUE 0 %
Garvey Center Executive Summary | 06
Hard Corner Location
Rare Mixed-Use Zoning
Future Development Potential
Excellent Long Term Tenant
Potential To Increase Rent
Excellent & Convenient Location
Development & Rapid Growth In The Area
Excellent 5 unit mixed-use property located on the corner ofGarvey Avenue and Lexinton Avenue. This offering is for 3commercial unit located on Garvey Avenue, including a liquorstore, a video rental store, and a dental office. Behind the 3commercial unit is a two story-two unit residential incomeproperty. Total gross leaseable area of 5 units is approximately5,905 square feet of building on an approximately 14,661 squarefeet of land.
This offering is ideal for a savy investor who can invest and holdfor short term and also provide for an opportunity to develop thesite in the future. Currently, rent are below market rate with anaverage rental rate of $1.14 per square feet, providing investor anopportunity to increase rent in the future. The corner location ofthe site along with the wide frontage on Garvey Avenue is ideal forfuture development.
The site is located in the heart of the City of El Monte and is lessthan 20 minutes from Downtown L.A. It is also centrally locatedwithin a short distance from nearby cities such as Alhambra,Monterey Park, San Gabriel, Rosemead, Baldwin Park, TempleCity, Arcadia, and Pasadena.
Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly
IncomeMarket Rent Market Rent
PSFMarket Income
Bella Dental 1 1,210 $0 $0.00 $0 $18,600 $15.37 $18,600Residential Lease 2 650 $0 $0.00 $0 $11,400 $17.54 $22,800
Star Liquor 1 2,450 $0 $0.00 $0 $37,800 $15.43 $37,800Video Store 1 1,000 $0 $0.00 $0 $18,000 $18 $18,000
Totals/Averages 5 1,192 $0 $0.00 $0 $19,440 $16.78 $97,200
Garvey Center Unit Mix Summary | 07
Garvey Center Location Summary | 08
Located on one of the most traffic thoroughfare ofGarvey Avenue in the City of El Monte, the subjectproperty is within closeproximity to the 10, 60, and 605 freeway. Access topublic transportation is also very convenient with ElMonte Metro Station within walking distance fromthe subject property. The property benefits fromexcellent visibility and heavy traffic count of over30,000 cars per day on Garvey Avenue.
Regional Map
Locator Map
Garvey Center | Property Description
Property Description
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Property Features
Aerial Map
Parcel Map
Additional Maps
Property Images
Garvey Center Property Features | 10
GLOBALNUMBER OF UNITS 5
BUILDING SF 5905
LAND SF 14661
LAND ACRES 0.34
# OF PARCELS 1
YEAR BUILT 1938
YEAR RENOVATED 1940
ZONING TYPE EMC3
LOCATION CLASS Hard Corner
BUILDING CLASS B
TOPOGRAPHY Rolling/Hilly
NUMBER OF BUILDINGS 5
NUMBER OF STORIES 2
LOT DIMENSION 90 x 164
TRAFFIC COUNTS 29000
SIGNALIZED CORNER Garvey/Lexington
PARKING RATIO 3.5/1000
NUMBER OF PADS 0
NUMBER OF INGRESSES 2
NUMBER OF EGRESSES 2
MULTI-FAMILY VITALSNUMBER OF PARKING SPACES 21
POOL / JACUZZI None
FIRE PLACE None
WASHER/DRYER None
NUMBER OF UNITS 2
CURRENT OCCUPANCY 100
HVAC None
FIRE SPRINKLERS None
HIGH-END FINISHES None
PRIVATE BALCONIES None
COMMERCIAL VITALSNUMBER OF UNITS 3
CURRENT OCCUPANCY 100
HVAC None
FIRE SPRINKLERS None
NEIGHBORING PROPERTIESNORTH Single Family Residence
SOUTH Commercial
EAST Commercial
WEST Commercial
Garvey Center Property Features | 11
CONSTRUCTIONFOUNDATION Slab Concrete
FRAMING Wood/Steel
EXTERIOR Stucco
PARKING SURFACE Asphalt
ROOF Flat/Rolling Composition
LANDSCAPING None
Garvey Center Aerial Map | 12
Garvey Center Parcel Map | 13
Garvey Center Location Map | 14
Garvey Center Property Images | 15
Garvey Center Property Images | 16
Garvey Center Property Images | 17
Garvey Center Property Images | 18
Garvey Center | Rent Roll
Rent Roll
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Rent Roll Details
Lease Expiration Summary
Garvey Center Rent Roll Commercial | 20
Lease Term Rental RatesSuite Tenant Name Square
Feet% of NRA Lease Start Lease End Begin Date Monthly Rent/SF Anually PSF Lease Type Options/Notes
10801 Star Liquor 2,450 41% 08/01/14 07/31/19 CURRENT $3,000 $1.22 $36,000 $14.69 First 5 year lease option from8/01/2019 - 7/31/2024,tenant rent will be $3,150.Second 5 year lease optionlease rate is negotiable.
10809 Video Store 1,000 17% 01/01/00 01/01/00 CURRENT $1,100 $1.10 $13,200 $13.20 Tenant is on a MTM (Month-To-Month) Lease Term
10811 Bella Dental 1,210 20% 06/01/17 05/31/22 CURRENT $1,550 $1.28 $18,600 $15.37 Newly signed five (5) yearlease.
Lexington #B
Residential Lease 650 11% 01/01/00 01/01/00 CURRENT $678 $1.04 $8,136 $12.52 Tenant is currently on MTMLease (Month-To-Month)
Lexington #A
Residential Lease 650 11% 01/01/00 01/01/00 CURRENT $728 $1.12 $8,736 $13.44 Tenant is currently on MTMLease (Month-To-Month)
Totals 5,960 $7,056 $84,672
Garvey Center Lease Expiration | 21
Garvey Center | Financial Analysis
Financial Analysis
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Income & Expense
Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
Garvey Center Income & Expense Analysis 23
INCOME CURRENT PRO FORMAMulti-Family Revenue $16,872 $22,800
Commercial Revenue $67,800 $75,000
Gross Potential Income $84,672 $97,800
Effective Gross Income $84,672 $97,800
Less: Expenses $16,193 $25,260
Net Operating Income $68,479 $72,540
EXPENSES CURRENT PRO FORMAReal Estate Taxes $1,816 $9,081 $3,600 $18,000
Insurance $190 $952 $220 $1,100
Repairs & Maintenance $120 $600 $120 $600
Water / Sewer $287 $1,434 $287 $1,434
Utilities $181 $907 $181 $907
Trash $644 $3,219 $644 $3,219
Total Operating Expense $3,239 $16,193 $5,052 $25,260
Expense / SF $2.74 $4.27
Expenses per Unit $3,238.60 $5,052.00
% of EGI 19.1 % 25.8 %
Per Unit Per Unit
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
Garvey Center Multiyear Cash Flow Assumptions | 24
GLOBALAnalysis Period 5 year(s)Commencement Date Dec. 1, 2017Millage Rate 1.50000 %
EXPENSE GROWTH RATESReal Estate Taxes 1.500 %Insurance 1.500 %Repairs & Maintenance 3.00 %Water / Sewer 1.500 %Utilities 1.500 %Trash 1.500 %
PROPOSED FINANCINGLOAN 1Loan Type Fully AmortizedDown Payment $1,200,000Loan Amount $0Interest Rate 0.00 %Annual Debt Service $0Loan to Value 0 %
LOAN 2Loan Type Fully AmortizedDown Payment $1,200,000Loan Amount $0Interest Rate 0.00 %Annual Debt Service $0Loan to Value 0 %
LOAN 3Loan Type Fully AmortizedDown Payment $1,200,000Loan Amount $0Interest Rate 0.00 %Annual Debt Service $0Loan to Value 0 %
Garvey Center Cash Flow Analysis| 25
CASH FLOWCalendar Year CURRENT Year 2 Year 3 Year 4 Year 5Gross Potential RevenueMulti-Family Revenue $16,872 $22,800 $23,484 $24,189 $24,914Commercial Revenue $67,800 $75,000 $75,000 $75,000 $75,000Gross Potential Income $84,672 $97,800 $98,484 $99,189 $99,914Effective Gross Income $84,672 $97,800 $98,484 $99,189 $99,914Operating ExpensesReal Estate Taxes $9,081 $18,000 $18,270 $18,544 $18,822Insurance $952 $1,100 $1,117 $1,133 $1,150Repairs & Maintenance $600 $600 $618 $637 $656Water / Sewer $1,434 $1,434 $1,456 $1,477 $1,500Utilities $907 $907 $921 $934 $948Trash $3,219 $3,219 $3,267 $3,316 $3,366Total Operating Expense $16,193 $25,260 $25,648 $26,042 $26,442Net Operating Income $68,479 $72,540 $72,836 $73,147 $73,472Cash Flow $68,479 $72,540 $72,836 $73,147 $73,472
Effective Gross Income vs Operating Expenses Cash Flow
Garvey Center Cash Flow Analysis| 26
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5Financial MetricsCash on Cash Return b/t 1.90 % 2.02 % 2.02 % 2.03 % 2.04 %CAP Rate 5.71 % 6.05 % 6.07 % 6.10 % 6.12 %Operating Expense Ratio 19.12 % 25.82 % 26.04 % 26.25 % 26.46 %Gross Multiplier (GRM) 14.17 12.27 12.18 12.10 12.01Breakeven Ratio 19.12 % 25.83 % 26.04 % 26.25 % 26.46 %Price / SF $203 $203 $203 $203 $203Expense / SF $2.74 $4.27 $4.34 $4.41 $4.47Income / SF $14.33 $16.56 $16.67 $16.79 $16.92
Garvey Center | Additional Inform
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Additional Information
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