mvp - loopnet...oceanfront dining and trendy shops. • los angeles has more museums and theatres...

MVPJonathan Prakash

Executive Managing Director, Partner

310.301.2351 | [email protected]

CalBRE: #01483131In Association with KW Commercial

Derrick VartanianExecutive Managing Director, Partner

310.301.2353 | [email protected]

CalBRE: #01816119

1934 Santa Ynez St, Los Angeles CA 90026

Offering Price: $1,295,000

CalBRE 02004120

EXCLUSIVE MULTIFAMILY OPPORTUNITY - 100% VACANT 1934SantaYnezSt.com

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1. EXECUTIVE SUMMARY

THE OFFERING & SUMMARY OF TERMS

C2 ZONING USES

2. FINANCIAL ANALYSIS

FINANCIAL SUMMARY & RENT ROLL

3. MARKET ANALYSIS

RENT SURVEY

4. MARKET OVERVIEW

CITY OF LOS ANGELES & GEOGRAPHY

SUBMARKET / DODGER STADIUM

NOTABLE LANDMARKS

ECHO PARK LAKE

GREATER LOS ANGELES AREA

DEMOGRAPHICS

MAJOR EMPLOYERS

RETAIL CENTERS

COLLEGES & UNIVERSITIES

HEALTH CARE CENTERS

PARKS AND RECREATION

TABLE OF CONTENTS

OFFERING MEMORANDUM

1934 Santa Ynez St, Los Angeles CA 90026

In Association with KW Commercial

CalBRE 02004120

41934 Santa Ynez St, Los Angeles, Ca 90026

MVP Commercial 5

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1934 Santa Ynez St Los Angeles CA 90026

1934 Santa Ynez St, Los Angeles, Ca 90026 6

EXECUTIVE SUMMARY

THE OFFERINGSUBJECT PROPERTY :1934 Santa Ynez St, Los Angeles, CA 90026

MVP Commercial Investment Real Estate of KW Commercial is pleased to present 1934 Santa Ynez Street, a four (4) unit wood frame stucco multifamily investment opportunity located in Echo Park. The property was built in 1911 and consists of 2,290 SF of living area. The quadruplex consist of four (4) spacious One Bedroom / One Bathroom Units and is situated on a 4,998 SF lot zoned LAC-2. Two of the units contain small bonus rooms that can be used as office space.

THE SUBJECT PROPERTY IS CURRENTLY 100% VACANT. A savvy investor could take advantage of this rare opportunity to rebrand the property by renting all units at market rates. This will generate outstanding returns for the new owner. With exceptional location in Echo Park, a very densely populated area of Los Angeles, a strategic investor will have no problem leasing the units in a high rental demand area and will enjoy a property that will run at maximum potential.

Further, the property is zoned C-2 which offers present and future potential for development of a myriad of projects ranging from Multifamily, Condos, Mixed-Use, and Retail along with several different use codes including but not limited to Business, Education, Community, Entertainment, Medical, etc. (Buyer to Verify). The current vacant building allows for an investor to immediately eliminate relocation costs of tenants, and the C-2 zoning allows for a developer to build up 12 units by right, and potentially more with low-income housing density bonuses (Buyer to Verify). An investor would have the ability to take advantage of these opportunities now or use them as a exit strategy down the line making 1934 Santa Ynez Street a unique opportunity in a neighborhood with a very high population density in the famed Echo Park area.

Situated just blocks from Sunset Blvd and Echo Park Lake, tenants also benefit from a short commute to Downtown Los Angeles and Dodger Stadium.

INVESTMENT HIGHLIGHTS

• 100% VACANT

• 7.53% CAP and 9.99 GRM at Full Market Rates

• Zoned LAC-2 | Develop 12 Units (By Right, Buyer to Verify)

• Priced at $259.10 per Lot SF

• Incredible Value-Add Opportunity

LOCATION HIGHLIGHTS

• High Rental Demand Area

• Just Minutes Away from Dodger Stadium and Downtown Los

Angeles

• Prime Echo Park Location just 2 blocks from Echo Park Lake and

Sunset Blvd.

• Easy Access to the 101 and the 110 Freeway

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EXECUTIVE SUMMARY

SUMMARY OF TERMS

1934 Santa Ynez St, Los Angeles CA 90026APN: 5404-007-005

Price $1,295,000

Proforma #1 CAP: 6.81%

Proforma #2 CAP: 7.53%

Price/Unit $323,750

Price/Gross SF: $443.49

Proforma #1 GRM 10.79

Proforma #2 GRM 9.99

Units 4

Number of Stories 2

Year Built 1911

Building Size 2,920 SF

Lot Size 4,998 SF

Zoning LAC-2

Parking Spaces Street Parking

PARCEL MAP

1934 Santa Ynez St. is located just South of Sunset Blvd. and Alvarado

St., and just West of Echo Park Lake.


Business• Antique Shop

• Architect’s Office

• Automobile Parking

• Automobile Sales

• Bakery

• Barber Shop

• Beauty Shop

• Bicycle Sales

• Blueprinting

• Café

• Candy Store

• Car Rental

• Clothing Store

• Furniture Store

• Hotel

• Jewelry Store

• Laundromat

• Lodge

• Manicure parlor

EXECUTIVE SUMMARY

C2 ZONING USES

Medical• Acupuncturist’s Office

• Clinic

• Cosmetological Establishment

• Counseling Facility

• Dental Clinic

• Doctors Office

• Massage Parlor

• Optician

• Pharmacy

Entertainment• Advertising Studio

• Animated Cartoon Studio

• Aquarium

• Art Gallery

• Book Store

• Broadcasting Studio

• Club

• Film Studio

• Gift Shop

• Museum

• Music Store

• Music Studio

• Production Studio

• Recording Studio

• Theater

• Veterinary Clinic

Educational• Beauty College

• Dance Studio

• Drama School

• Childcare Facility

• Educational Institution

• Library

• Music School

• Private School

• Tutoring Center

Community• Affordable Housing

• Bank

• Charitable Institution

• Community Center

• Cultural Center

• Eldercare Facility

• Financial Institution

• Fish Market

• House Of Worship

• Orphanage

• Park/Playground

• Recreation Center

• Religious Association

• Shelter

• Wedding Chapel

• Motorycycle Sales

• Office

• Parking Building

• Pet Store

• Repair Shop

• Restaurant

• Shared Office Space

• Skating Rink

• Spa

• Sporting Goods Store

• Tanning Salon

• Travel Agency

• Yoga Studio

Source: Http://Planning.lacity.org/Documents/Oza/15-2348Combined.pdf

(Buyer to Verify)

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ECHO PARK LAKE LOTUS BED


FINANCIAL SUMMARY1934 Santa Ynez St, Los Angeles CA 90026

PRICING ESTIMATED ANNUALIZED EXPENSES

Price $1,295,000 *Taxes: Rate Rate 1.250% $16,188

Down Payment 100% 1,295,000 *Insurance $1,314

Number of Units 4 *Utilities $2,880

Cost per Legal Unit $323,750 *Maintenance/Repair $5,400

Proforma #1 GRM 10.79 *Reserves 1.0% $1,200

Proforma #2 GRM 9.99 *Gardening $1,188

Proforma #1 CAP 6.81%

Proforma #2 CAP 7.53%

Approximate Age 1911

Approximate Lot Size 4,998 SF

Approximate Building Sqft 2,920 SF *Estimated Expenses*

Cost per Net GSF $443.49 **Seller Stated Expenses**

Total Expenses $28,170

Per Net Sqft $9.65

Per Unit $7,042.38

ANNUALIZED OPERATING DATA SCHEDULED INCOME

Proforma #1 Proforma #2 Proforma #1 Proforma #2

Scheduled Gross Income $120,000 $129,600 No. of Units Bed/Bath Approx. Sqft Rent/Unit Income Rent/Unit Income

Less Vacancy Rate Reserve ($3,600) 3.0% ($3,888) 3.0% 4 1+1 $2,500 $10,000 $2,700 $10,800

Gross Operating Income $116,400 $125,712

Less Expenses ($28,170) 23.5% ($28,170) 21.7%

Net Operating Income $88,231 $97,543

Less Loan Payments - -

Pre-Tax Cash Flow $88,231 6.8%* $97,543 7.5%* Average Rent/Gr. Sqft $3.42 $3.70

Plus Principal Reduction - - Total Scheduled Rent $10,000 $10,800

Total Return Before Taxes $88,231 6.8%* $97,543 7.5%*

Monthly Schedule Gross Income $10,000 $10,800

Annual Scheduled Gross Income $120,000 $129,600

Utilities Paid by Tenant Gas & Electricity

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RENT ROLL

UNIT NO. MIX PROFORMA #1 NOTES PROFORMA #2

1934 1+1 $2,500.00 Vacant $2,700.00

1934 1/2 1+1 $2,500.00 Vacant, Small Bonus Room $2,700.00

1936 1/2 1+1 $2,500.00 Vacant, Small Bonus Room $2,700.00

1936 1+1 $2,500.00 Vacant $2,700.00

***Brokers do not represent the accuracy of any of this information. Buyer to conduct own investigation of all information provided.***

Monthly Rent $10,000 $10,800

Yearly Gross Income $120,000 $129,600


SUBJECT PROPERTY

RENT SURVEY

$2,375 - 817 E Edgeware Rd

$2,200 - 1908 Clinton St$2,500 to $2,680 - 1932 Clinton St

$2,900 - 1441 Carroll Ave

$2,700 - 1441 Echo Park Ave

$3,000-$3,200 - 1030 N Alvarado St$3,100 - 840 N Coronado St

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ADDRESS RENTS

1 Bedroom / 1 Bathroom

817 E Edgeware Rd. Los Angeles, CA 90026 $2,375

1908 Clinton St. Los Angeles, CA 90026 $2,200

1932 Clinton St. Los Angeles, CA 90026 $2,500-$2,680

1441 Carroll Ave. Los Angeles, CA 90026 $2,900

1441 Echo Park Ave. Los Angeles, CA 90026 $2,700

1030 N Alvarado St. Los Angeles, CA 90026 $3,000 - $3,200

840 N Coronado St. Los Angeles, CA 90026 $3,100

RENT SURVEYRENT SURVEY


LOCATION OVERVIEW

Los Angeles, the second largest city in the United States, is located

in southern California and is situated in the county of Los Angeles.

This city is known for its sunny climate, sprawling city life, and considered

to be the center of the entertainment capital of the world.

The city of Los Angeles leads its counterparts in several major growth

industries. LA county has more than 87,000 jobs in the fashion

industry surpassing New York city. In addition, Los Angeles houses

700,000 jobs in health services/biomedical field and 190,000 jobs in

the aero-space and technology field.

CITY OF LOS ANGELES

Location Highlights

• In 2015, leisure and hospitality is the leading industry with 488,100

jobs in Los Angeles. In the same year, this sector added 21,500

jobs which represents 4.6% job growth year after year.

• The largest number of manufacturing jobs of any county in the

country.

• Other major industries include health care, education, and

business services.

• L.A.’s coastal regions boast some of the best surf spots, amazing

oceanfront dining and trendy shops.

• Los Angeles has more museums and theatres than any other

city in the United States. Los Angeles has 105 museums and

225 theatres making it the mecca of arts and culture.

• With its rich cultural diversity, Los Angeles has the most

dynamic dining experiences a city has to offer. Each region

of Los Angeles offers a variety of dining options without ever

leaving the general area.

Source: www.discoverlosangeles.com

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LOCATION OVERVIEW

GEOGRAPHYThe city of Los Angeles, surrounded by the San Gabriel Mountain

range and divided by the Santa Monica Mountains, is primarily a

desert basin. This city has 75 miles of coastline and altitudes ranging

from 9 feet below sea level at Wilmington to 10,080 feet above sea

level at Mt. San Antonio. Los Angeles rivers include Rio Hondo,

San Gabriel, Santa Clara and Los Angeles rivers.

City of Los Angeles: 472 square miles

County of Los Angeles: 4,084 square miles

Los Angeles Five-County Area: 34,135 square miles

Source: LACity.org, LACounty.org, California State Association of Counties counties.org


SUBMARKET

Surrounded by Downtown Los Angeles, Chinatown, Silver Lake and Elysian Park, Echo Park is a Los Angeles neighborhood filled with historic homes and a diverse population. Locals enjoy Dodger Stadium, Echo Park Lake, eclectic shopping and various cultural dining. North of Sunset Boulevard, property values are increasing due to development and gentrification.

ECHO PARK

Source: nytimes.com and cnn.com

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DODGER STADIUM

Located in the Elysian Park Neighborhood of Los Angeles, Dodger Stadium opened on April 10, 1962.

Dodger Stadium, 1000 Vin Scully Avenue, Los Angeles CA 90012


NOTABLE LANDMARKS

Madang Plaza Shopping Mall, 621 S. Western Ave, Los Angeles CA 90005 Angelus Temple

Carroll Avenue

Elysian Park

Olvera Street

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Madang Plaza Shopping Mall, 621 S. Western Ave, Los Angeles CA 90005 Union Station

The Cathedral of Our Angels

Downtown Chinatown

Elysian Park Arboretum


ECHO PARK LAKE

13-acres urban lake surrounded by 16-acres of recreational space located in Echo Park and Silver Lake neighborhood.

Echo Park Lake, 751 Echo Park Ave, Los Angeles, CA 90026

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DOWNTOWN LOS ANGELES

THE GREATER LOS ANGELES AREA

Downtown Los Angeles, a large city with an abundance of historic architecture and cultural attractions, offers incredible restaurants, hotels with amazing views and a thriving nightlife. In the South Park District of Downtown Los Angeles is L.A. Live, an entertainment complex, that host popular attractions like the GRAMMY Museum, Lucky Strick Lanes and Regal Cinemas. In addition, STAPLES Center, adjacent to the L.A. Live, is home to the Los Angeles Lakers, Clippers, Kings and Sparks.

Known for its glitz and glam, Hollywood is home to film, television and music industries. Although most studios have moved to neighboring cities, Hollywood still attracts millions of visitors each year. Hollywood and Highland Center, in the heart of Hollywood, is one of the hottest entertainment centers in Los Angeles. Hollywood is ethnically diverse, heavily populated and offers delicious multicultural cuisines.

Renowned for its sunny skies and beaches, Santa Monica attracts more than 7 million visitors a year. This one of a kind city averages more than 300 days of sunshine a year and has some of the best sunsets on the west coast. Santa Monica has become a walkable and bike-friendly town allowing easy access to shopping, restaurants and attractions such as the Santa Monica Pier and Third Street Promenade.

HOLLYWOOD SANTA MONICA


DEMOGRAPHICS

City of Los Angeles: 4.0 Million

County of Los Angeles: 10.1 Million

Los Angeles Five-County Area: 18.6 Million

POPULATION (2015)

Source: California Department of Finance, Demographic Research Visit

Hispanic or Latino (of any race) 47.9%

Non-Hispanic Whites: 27.5%

Asian/Pacific Islander: 13.7%

African-American: 8.1%

American Indian/Others: 2.8%

Source: U.S. Census Bureau - 2013 American Community Survey

ETHNICITY

Median household income: $48,610

Mean household income $76,557

Median family income: $53,008

Mean family income: $83,965

Median non-family income: $38,227

Mean non-family income: $61,155

Source: 2006-2008 American Community Survey

INCOME

“The diverse, multiethnic population of Los Angeles today

distinguishes the city as the cultural hub of the Pacific Rim.

People from more than 180 countries, speaking 140 different

identified languages, currently call Los Angeles home. Los

Angeles does not have a majority population.”

- www.discoverlosangeles.com

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MAJOR EMPLOYERS

County of Los Angeles 96,500

Los Angeles Unified School District 59,600

City of Los Angeles (including DWP) 46,900

University of California, Los Angeles 46,900

Federal Government (non-Defense Dept.) 43,400

Kaiser Permanente 36,000

State of California (non-education) 29,200

Northrop Grumman Corp. 17,000

Target Corp. 15,000

Providence Health & Services 15,000

Source: California Employment Development Department, The Los Angeles Business Journal, and Almanac research

TOP 10 EMPLOYERS IN LOS ANGELES


RETAIL CENTERS IN THE GREATER LOS ANGELES AREA

RODEO DRIVE

Rodeo Drive is in the center of the Golden Triangle. Some of the most luxurious hotels, shopping and dining in the world occupy this distinguished corridor. The most prestigious and recogniz-able brands in fashion such as Valentino, Saint Laurent, Tiffany & Co., Cartier, Rolex, Chanel and Salvatore Ferragamo are situat-ed on Rodeo Drive.

THE GROVE

The Grove, an entertainment

complex in Los Angeles, features

brand name stores, chain and local

restaurants, a large center park with

an animated fountain and Pacific

Theatres. Visitors can take a free

ride to The Grove Trolley which

travels along First Street between

The Grove and Famer’s Market.

MELROSE AVE

Melrose Avenue is famous for its

underground and new wave retail

stores which became popular in

the 1980’s . This dest inat ion

attracts visitors from all over the

world for its unique shopping

experience, spectacular dining,

and entertainment.

BEVERLY CENTER

Beverly Center, eight-story shopping

mall located at the edge of Beverly

Hills and West Hollywood, provides

a shopping experience unlike its

counterparts in the local area. With

over 100 specialty retail stores,

shoppers are able to get everything

they need in one location. Recently,

the owners have unveiled their plans

to spend $500 million to renovate

the Beverly Center.

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Los Angeles County is home to 113 accredited colleges and universities, including such prestigious institutions as the University of Southern California (USC), UCLA, Pepperdine University, Occidental College, Loyola Marymount University and the Art Center College of Design.

Source: LAEDC

COLLEGES & UNIVERSITIES

University of Southern California

Pepperdine University

University of California, Los Angeles

Art Center College of Design


HEALTH CARE CENTERS

According to U.S. News, UCLA Medical Center, Cedars-Sinai Medical Center, Kesk Medical Center of USC and Kaiser Permante Los Angeles Medical Center are ranked in the top 20 hospitals in California.

UCLA Medical Center

Keck Medical Center of USC

Cedars-Sinai Medical Center

Kaiser Permanente LA Medical

MVP Commercial 27

PARKS AND RECREATION

Spanning an impressive 4,210 acres, it’s easy to get lost in LA’s largest public green space, much of which remains unchanged from the days when Native Americans settled here.

Griffith Observatory

Kenneth Hahn is impressive in both size and topography for a park in the middle of the Westside.

Kenneth Hahn State Recreation Area

Explore the La Brea Tar Pits, which for over 100 years has unearthed prehistoric fossils, and enjoy the Urban Light sculptures from LACMA which is within a stone’s throw.

Hancock Park La Brea

Unlike the touristy turnout just up the road, this park stays quiet throughout the day. The whole family can enjoy the playground, shaded picnic benches and one of the most fantastic views of the Hollywood Sign.

Lake Hollywood Park

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This Confidential Memorandum has been prepared by MVP Commercial Investment Real Estate (“MVP”) and is being furnished to you solely for the purpose of your review of the commercial property located at 1934 Santa Ynez St, Los Angeles CA 90026. The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of MVP Commercial Investment Real Estate and KW Commercial (“Broker”).

By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to MVP as soon as practicable together with all other materials relating to the Property which you may have received from MVP; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of MVP.

This Confidential Memorandum has been prepared by MVP, based upon certain information pertaining to the Property and any information obtained from MVP to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by MVP to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon MVP, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither MVP or KW Commercial, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred.

MVP, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice.

This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum, you agree to release MVP and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. MVP reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.

CONFIDENTIAL DISCLAIMER

www.mvpcre.com

In Association with KW Commercial

Jonathan PrakashExecutive Managing Director, Partner310.301.2351 | [email protected]: #01483131

Derrick VartanianExecutive Managing Director, Partner310.301.2353 | [email protected]: #01816119

CalBRE 02004120