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Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
1OFFERING MEMORANDUMListing Price $1,900,000
1021 N EDINBURGH AVEWEST HOLLYWOOD, CA 90046
• 2 UNITS REHABBED AND DELIVERED VACANT• STELLAR LOCATION• SALE SUBJECT TO COURT CONFIRMATION,
CALL PHIL SEYMOUR FOR COMPLETE DETAILS.
David Weinberger818.970.0915
[email protected] DRE #01349349
Phil Seymour310.612.9800
[email protected] #00630158
Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
2DISCLAIMER
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 any 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 dili-gence 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 rel-evance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transactionAll 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 limita-tions 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 appro-priate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Commercial in compliance with all applicable fair housing anvd equal opportunity laws. We obtained the 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 of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or with-drawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
3TABLE OF CONTENTS
Executive Summary
Property Highlights
Property Information
Financials
Comparables
Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
4PROPERTY INFORMATION
8 600 SFTotal Unit Average Unit Size
1954 6,307 SFYear Built Lot Size
4,804 SF 8 SPACESBuilding Size Parking
Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
5
1021 North Edinburgh Avenue has a Walk Score of 94 out of 100. This location is a Walker’s Paradise so daily errands do not require a car.
This location is in West Hollywood. Nearby parks include William S. Hart Park, Rosewood Park and Plummer Park.
94
60
58
Walk Score
Transit Score
Bike Score
Walker’s Paradise
Good Transit
Bikeable
Daily errands do not require a car.
Many nearby publictransportation option
Mostly flat, minimal bike lanes.
WALKABILITY
Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
6FINANCIALS
FINANCIAL INDICATORS
Offering Price $1,900,000
Current CAP 3.0%
Market CAP 7.2%
Current GRM 20.0
Market GRM 10.8
Cost Per SF $396
Cost Per Unit $237,500
Cash on Cash Return 3.0%
Expenses Per Unit $4,601
Expenses Per Sq Ft $7.66
BUILDING DATA
Units 8
Year Built 1954
Lot Sq Ft 6,307
Bldg Gross Sq Ft 4,804
Parking Spaces 8
ESTIMATED ANNUALIZED EXPENSES
New Property Taxes $22,286
Utilities (Water & Power) $6,500
Property Insurance $1,922
Maintenance & Repairs $3,200
Pest Control & Cleaning $900
Reserves & Replacements $2,000
Total Estimated Expenses -$36,807
SOURCE OF INCOME CURRENT RENTS MARKET RENTS
# of Units Unit Type Avg. Rent Total Avg. Rent Income
6 1 Bed / 1 bath $809 $4,854 $1,650 $9,900
2 2 Bed / 2 bath $1,475 $2,950 $2,350 $4,700
Total Rental Income $7,804 $14,600
Laundry Income $100 $100
Total Monthly Income $7,904 $14,700
Total Annual Income $94,845 $176,400
EST. ANNUALIZED OPERATING DATA CURRENT MARKET
Scheduled Gross Income $94,845 $176,400
Less Vacancy 2.0% ($1,897) 2.0% ($3,528)
Gross Operating Income $92,948 $172,872
Less Expenses 40% ($36,807) 22% ($36,807)
Net Operating Income $56,140 $136,065
Notations:1) Real Estate Taxes have been underwritten based a tax rate of 1.172939
2) Property Insurance: Underwritten at .40 per SF
3) Maintenance & Repars: Based upon $400 per unit per year
4) Pest Control & Landscaping based upon $75 Per Month
5) Reserves & Replacements : Based upon $250 per unit per year.
6)Utiltites (Water, sewer, waste, gas, electical) based on $962 per unit / per year
Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
7
* Estimated Square Footage
RENT ROLL
UNIT STATUS UNIT TYPE UNIT SF NOTATIONS CURRENT RENTPOST RENOVATION
MARKET RENT
1 Tenant 1 Bed / 1 Bath 584 $398 $1,650
2 Tenant 1 Bed / 1 Bath 584 $500 $1,650
3 Vacant 1 Bed / 1 Bath 584 Rehabbed $1,650 $1,650
4 Vacant 2 Bed / 1 Bath 650 Rehabbed $2,350 $2,350
5 Tenant 1 Bed / 1 Bath 584 $900 $1,650
6 Tenant 1 Bed / 1 Bath 584 $800 $1,650
7 Tenant 1 Bed / 1 Bath 584 $606 $1,650
8 Tenant 2 Bed / 1 Bath 650 $600 $2,350
TOTAL: *4,804 $7,804 $14,600
Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
8SALES COMPS
Rent Comparables Summary1021 N Edinburgh Ave
17 $2,398 $2.54 3.4%No. Rent Comps Avg. Rent Per Unit Avg. Rent Per SF Avg. Vacancy Rate
RENT COMP LOCATIONS
RENT COMPS SUMMARY STATISTICS
Unit Breakdown Low Average Median High
Total Units
Studio Units
One Bedroom Units
Two Bedroom Units
Three Bedroom Units
8
0
0
0
0
20
4
6
8
1
14
0
5
4
0
57
48
20
38
19
Property Attributes Low Average Median High
1923Year Built
Number of Floors
Average Unit Size
Vacancy Rate
Star Rating
1
0 SF
0.0%
1962
2
1,029 SF
3.4%
1960
2
806 SF
3.2%
2017
4
1,416 SF
7.9%
2.4
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Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
9
Rent Comparables Summary1021 N Edinburgh Ave
Property Name/Address Rating Yr Built Units Avg Unit SF Studio 1 Bed 2 Bed 3 Bed Rent/SF
Property Size Asking Rent Per Month Per Unit
-Edinburgh Courtyard
57 1,416 - - $3,255 $4,302 $2.80833 N Edinburgh Ave
1 2017
-Romaine Towers
48 1,050 $2,834 - - - $2.708011 Romaine St
2 1965
-Romaine Apartments
25 1,000 - - $2,691 - $2.697925 Romaine St
3 1968
-La Ventana
15 1,344 - - $3,590 - $2.671031 N Crescent Heights…
4 1989
-1009 N Hayworth Ave
20 700 - $1,700 - - $2.435 1963
-1022 N Hayworth Ave
8 557 - $1,258 $1,517 - $2.376 1954
-8016-8020 Norton Ave
10 720 $1,567 $1,653 - - $2.277 1940
-Hayworth Apartments
38 1,200 - - $2,524 - $2.10924-944 N Hayworth Ave
8 1966
-7972 Norton Ave
9 805 - $1,180 $2,357 - $1.799 1958
-8010 Norton Ave
14 392 - $637 - - $1.6210 1923
-1010 N Crescent Heights…
11 - - $1,011 $2,247 - -11 1963
-1019 N Hayworth Ave
10 - - $444 $740 $1,665 -12 1959
-1014 N Hayworth Ave
8 - - $578 $1,081 - -13 1953
-1023 N Hayworth Ave
17 0 $1,513 $843 $1,009 - -14 1959
-Harper on Hayworth
24 - - $2,526 $1,100 - -1122 N Hayworth Ave
15 1960
-1045 N Edinburgh Avenu…
10 - - - $2,676 - -1045 N Edinburgh Ave
16 1958
-1009 N Edinburgh Ave
9 - $804 $956 $1,968 - -17 1971
-1021 N Edinburgh Ave
- - - - - - -1954
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Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
10
Rent Comparables by Bedroom1021 N Edinburgh Ave
$2,560 $1,361 $2,544 $4,170Studio Comps One Bed Comps Two Bed Comps Three Bed Comps
Subject
-Subject
-Subject
-Subject
-
1 Bedroom 2 Bedroom 3 BedroomCurrent Conditions in Rent Comps Studio
Total Number of Units 60 98 136 20
Vacancy Rate 2.7% 3.7% 3.0% 5.0%
Asking Rent Per Unit $2,560 $1,361 $2,544 $4,170
Asking Rent Per SF $2.70 $2.12 $2.46 $3.03
Effective Rents Per Unit $2,548 $1,352 $2,532 $4,145
Effective Rents Per SF $2.68 $2.11 $2.45 $3.01
Concessions 0.5% 0.6% 0.5% 0.6%Changes Past Year in Rent Comps Studio 1 Bedroom 2 Bedroom 3 Bedroom
Year-Over-Year Effective Rent Growth 2.1% 11.6% -0.6% -5.3%
Year-Over-Year Vacancy Rate Change
12 Month Net Absorption in Units
0.3%
0
0.5%
0 0
0.4% 2.0%
0
EXISTING UNITS VACANT UNITS
ASKING RENT PER UNIT PER MONTH 12 MONTH NET ABSORPTION IN UNITS
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Rent Comparables by Bedroom1021 N Edinburgh Ave
$2,560 $1,361 $2,544 $4,170Studio Comps One Bed Comps Two Bed Comps Three Bed Comps
Subject
-Subject
-Subject
-Subject
-
1 Bedroom 2 Bedroom 3 BedroomCurrent Conditions in Rent Comps Studio
Total Number of Units 60 98 136 20
Vacancy Rate 2.7% 3.7% 3.0% 5.0%
Asking Rent Per Unit $2,560 $1,361 $2,544 $4,170
Asking Rent Per SF $2.70 $2.12 $2.46 $3.03
Effective Rents Per Unit $2,548 $1,352 $2,532 $4,145
Effective Rents Per SF $2.68 $2.11 $2.45 $3.01
Concessions 0.5% 0.6% 0.5% 0.6%Changes Past Year in Rent Comps Studio 1 Bedroom 2 Bedroom 3 Bedroom
Year-Over-Year Effective Rent Growth 2.1% 11.6% -0.6% -5.3%
Year-Over-Year Vacancy Rate Change
12 Month Net Absorption in Units
0.3%
0
0.5%
0 0
0.4% 2.0%
0
EXISTING UNITS VACANT UNITS
ASKING RENT PER UNIT PER MONTH 12 MONTH NET ABSORPTION IN UNITS
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Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
11
One Bedroom Rent Comparables1021 N Edinburgh Ave
Property Name/Address Rating One Bedroom Rent Per Unit YearQuarterRent/SF
Change in Rent
1122 N Hayworth AveHarper on Hayworth
55.0%0.3%-$2,526
$2,525
1009 N Hayworth Ave-3.6%-0.9%$2.43
$1,700
8016-8020 Norton Ave1.5%0.1%$2.20
$1,653$1,653
1022 N Hayworth Ave1.5%0.1%$2.42
$1,258$1,258
7972 Norton Ave1.5%0.1%$1.57
$1,180$1,179
1010 N Crescent Heights Blvd1.5%0.1%-
$1,011$1,011
1009 N Edinburgh Ave1.5%0.1%-
$956$955
1023 N Hayworth Ave1.5%0.1%-
$843
8010 Norton Ave1.5%0.1%$1.62
$637$569 $715
1014 N Hayworth Ave1.5%0.1%-
$578$578
1019 N Hayworth Ave1.5%0.1%-
$444
$0 $750 $1,500 $2,250 $3,000
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Offering Memorandum | 1021 N Edinburgh Ave., West Hollywood
12
Two Bedroom Rent Comparables1021 N Edinburgh Ave
Property Name/Address Rating Two Bedroom Rent Per Unit YearQuarterRent/SF
Change in Rent
1031 N Crescent Heights BlvdLa Ventana
-8.8%0.0%$2.67$3,590
833 N Edinburgh AveEdinburgh Courtyard
-1.2%0.2%$2.76$3,255
$3,255
7925 Romaine StRomaine Apartments
2.3%0.3%$2.69$2,691
$2,690
1045 N Edinburgh Ave1045 N Edinburgh Avenue Ap…
2.3%0.3%-$2,676
$2,675
924-944 N Hayworth AveHayworth Apartments
1.5%0.1%$2.10$2,524
$2,523
7972 Norton Ave1.5%0.1%$2.36
$2,357
1010 N Crescent Heights Blvd1.5%0.1%-
$2,247$2,247
1009 N Edinburgh Ave1.5%0.1%-
$1,968
1022 N Hayworth Ave1.5%0.1%$2.26
$1,517
1122 N Hayworth AveHarper on Hayworth
0.7%0.3%-$1,100
1014 N Hayworth Ave1.5%0.1%-
$1,081
1023 N Hayworth Ave1.5%0.1%-
$1,009$1,008
1019 N Hayworth Ave1.5%0.1%-
$740
$0 $1,000 $2,000 $3,000 $4,000
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Offering Memorandum1021 N Edinburgh Ave., West Hollywood
David Weinberger818.970.0915
[email protected] #01349349
Phil Seymour310.612.9800
[email protected] #00630158