prime koreatown development james capital advisors …€¦ · 1200 s. westmoreland ave, los...

PRIME KOREATOWN DEVELOPMENT

TOC BONUS & OPPORTUNITY ZONEJAMES CAPITAL ADVISORS

MARKETING PACKAGE

TABLE OF

Contents

CONTENTS

MEET YOUR ADVISORS

SECTION

Property Overview

Financial Analysis

Location Overview

1

2

3

tyler chungAssociate, Multifamily

1200 S. Westmoreland Ave, Los Angeles, CA 90006

tom jonssonDirector, Multifamily

will jamesDirector, Multifamily

SECTION ONE

PROPERTY OVERVIEW1200 S. WESTMORELAND AVE

Los Angeles, CA 90006

PROPERTY OVERVIEW

DETAILS

Street Address

City

State

Zip Code

APN

Zoning

TOC

1200 S. Westmoreland Ave

Los Angeles

CA

90006

5076-018-013

R4-1XL

Tier 2

Number of Units

Unit Mix

Rentable SF

Existing Buildings

Stories

Parking

Year Built

6

(6) 1 Bed / 1 Bath

5,620 SF

1

2

On-Site

1939

Lot Size

Lot Dimensions

Building Line

Council District

Historic Review

Specific Plan

Opportunity Zone

10,823 SF

55 x 198.29

None

CD 1 - Gilbert Cedillo

No

None

Yes

PROPERTY OVERVIEW

THE OFFERING

THE OFFERING

Premier Development Opportunity in Thriving KoreatownThe current opportunity is to develop approximately 44 apartment units under Los Angeles’s new Transit Oriented Communities (TOC). This measure requires the City Planning to create incentives for all housing developments located within a one-half mile radius of a major transit stop. Due to the proximity to the Olympic and Vermont Metro stop, this development qualifies for TOC Tier 2. Density Bonus incentives include an additional 11 feet in height and 45% increase in FAR, 60% increase in the number of buildable units, a decrease in setbacks and open space requirements, along with a reduction in parking now only requiring 0.5 spaces per unit; no more than 1 required per unit. This 10,823 square foot lot will come with 2 vacant units.

This offering is located in a thriving location that’s been going through major developments, presenting a rare opportunity for developers looking to establish a new boutique luxury apartment in Koreatown.

PRICE

RENTALBE SF

LOT SIZE

$2,200,000

5,620 SF

10,823 SF

TOC

Zoning

APN

Current Use

Tier 2

R4-1XL

5076-018-013

Multifamily Housing

1200 S. WESTMORELAND AVE


PROPERTY OVERVIEW

HIGHLIGHTSPROPERTY OVERVIEW

PLAN VIEW / Plat Map

TOC TIER 2 BUILDING INCENTIVES

• 60% Unit density bonus

• 45% Increase in FAR

• Height Bonus: 11 feet or one story

• 30% Reduction in set backs

• 0.5 Parking spaces per bedroom; no more than 1 required space per unit

OPPORTUNITY ZONES

Opportunity Zones offer incentives to developers

looking to invest in low-income communities. This

offers three tax incentives through a qualified

Opportunity Fund: Temporary Deferral, Step-Up in

Basis, and Permanent Exclusion.

PROPERTY OVERVIEW

HOTSPOTSPROPERTY OVERVIEW

HOTSPOTS

The Line HotelA second home for neighbors and travelers seeking a rich, layered experience unlike any other in Los Angeles. Tucked between Hollywood and downtown, the LINE LA is your haven for creative expression and exploration.

Parks BBQGo to Park’s BBQ for the best Korean barbecue in the heart of K-Town, a bold, but true, claim for the constantly changing neighborhood with more smoke-filled barbecue spots per square mile than some major cities.

OpenaireCreated in collaboration with two-star Michelin Chef and native Angeleno, Josiah Citrin, Openaire is a poolside oasis of green at the center of the Koreatown. The menu features the best of California’s ingredients from land and sea.

Koreatown PlazaKoreatown Plaza comes closest to a centralized, bourgeois shopping district, albeit trapped inside of a distinctively ‘80s mall. The selection skews towards global kids and adult brands. The overall experience is an American mall with Korean flair.

Wiltern TheatreThe Wiltern evokes a period of elegance and style simply not found anywhere in today’s modern venues. The entrance is set back among colorful terrazzo paving, and its art deco design contains decorative tile work along with colorful murals.

MaDang CourtyardMa Dang the Couryard, that curiously-designed Koreatown mini-mall on Western Avenue right across for Solair is a three-level shopping and entertainment complex.

Kang Ho-dong BaekjeongKang HoDong Baekjeong is one of Koreatown’s most popular BBQ restaurants. While the meat and banchan are both very good, a meal here is a true test of patience as wait times fall in the two-hour range almost every day of the week.

Chapman PlazaChapman market and its companion Chapman Park Studio building across Alexandria Avenue were envisioned, along with the since-demolished Chapman Park Hotel, as fashionable anchors of the neighborhood.

Koreatown GalleriaThe Koreatown Galleria’s bright, airy interior offers an alternative to the sometimes grimy streetscape near Western and Olympic. The mall features apareal, gifts, specialty foods and a supermarket.

Quarters Korean BBQQuarters might be next door to a serious heavyweight in Kang Ho Dong Baekjeong, but it’s proven to be a serious contender in its own right. Excellent quality meats, a modern-looking space and, full bar.

PROPERTY OVERVIEW

TRANSIT

Metro Stops1. North Hollywood2. Universal City / Studio City3. Hollywood / Highland4. Hollywood / Vine5. Hollywood / Western6. Vermont / Sunset7. Vermont / Santa Monic8. Vermont / Beverly9. Wilshire / Western10. Wilshire / Normandie11. Wilshire / Vermont12. Westlake / MacArthur Park13. 7th St. / Metro Center14. Pershing Square15. Civic Center / Grand Park16. Union Station

Points of InterestA. Universal Studios / City WalkB. John Anson Ford TheaterC. Hollywood BowlD. TCL Chinese TheatreE. Dodger StadiumF. Disney Concert HallG. Museum of Contemporary ArtH. Staples CenterI. MacArthur ParkJ. Pantages TheaterK. Los Angeles Convention Center

A

B

J

C

D

GI

E

F

HK

SECTION TWO

FINANCIAL ANALYSIS1200 S. WESTMORELAND AVE


FINANCIAL ANALYSIS

FINANCINGFINANCIAL ANALYSIS

INCOME AND EXPENSE

Down Payment

Loan Amount

Interest Rate

Amortization / Fixed-Period

Term

Debt Service

Pre-Tax Cash Flow

Principle Reduction

Total Return

CURRENT

-$38,820

$7,909

-$11,418

$19,326

PRO FORMA

-$38,820

$32,827

-$11,418

$44,244

$1,534,500

$665,500

4.00%

30 Years / 5 Years

360 Months

(0.52%)

(1.26%)

(2.14%)

(2.88%)

ANNUAL

INCOME

Base Rental Income

Gross Potential Income

Vacancy Allowance

Effective Gross Income

Operating Expenses

Net Operating Income

CURRENT

$100,776

$100,776

$5,039

$95,737

$49,008

$46,729

PRO FORMA

$129,600

$129,600

$6,480

$123,120

$51,437

$71,647

ANNUAL

EXPENSE

Property Taxes

Insurance

Utilities

Repairs & Maintenance

Management Fee

Pest Control

Landscaping

Miscellaneous

Reserves

Operating Expenses

CURRENT

$27,500

$3,372

$5,760

$4,787

$3,829

$360

$1,200

$1,000

$1,200

$49,008

PRO FORMA

$27,500

$3,372

$5,760

$6,156

$4,925

$360

$1,200

$1,000

$1,200

$51,473

FINANCIAL ANALYSIS

RENT SCHEDULE

UNIT #

1

2

3

4*

5

6*

TOTAL

*Will be Delivered Vacant

UNIT TYPE

1 Bed / 1 Bath

1 Bed / 1 Bath

1 Bed / 1 Bath

1 Bed / 1 Bath

1 Bed / 1 Bath

1 Bed / 1 Bath

SQ. FOOTAGE

937 SF

937 SF

937 SF

937 SF

937 SF

937 SF

5,620 SF

RENT

$1,035

$1,424

$1,275

$1,800

$1,064

$1,800

$8,398

RENT PER SF

$1.11

$1.52

$1.36

$1.92

$1.14

$1.92

PRO FORMA

RENT

$1,800

$1,800

$1,800

$1,800

$1,800

$1,800

$10,800

PRO FORMA

RENT PER SF

$1.92

$1.92

$1.92

$1.92

$1.92

$1.92

SECTION THREE

LOCATION OVERVIEW1200 S. WESTMORELAND AVE


LOCATION OVERVIEW

OREINTATION MAP

NEIGHBORHOOD SCALE CITY SCALE

LOCATION OVERVIEW

submarketsLOCATION OVERVIEW

opportunity zones

KoreatownThe Koreatown apartment market has been highly liquid for several years. This year’s largest trade was Equity Residential’s August acquisition of the 5 Star, 398-unit Next on Sixth for $189 million, or about $475,000/unit. One of LA County’s largest deliveries when the seller, Century West Partners, finished development in 2017, the asset stabilized in early 2019 and was close to fully leased at the time of sale.

Downtown Los AngelesDowntown Los Angeles (DTLA) is the central business district of Los Angeles, California, as well as a widely diverse residential neighborhood of some 58,000 people. Downtown, comprising diverse smaller areas such as Chinatown, Little Tokyo and the Arts District, offers renowned art museums, cutting-edge restaurants & hip bars. It is home of the Staples center where the Lakers, the Clippers and the Kings play every seasosn. It is also the home of the Los Angeles Convention Center where special events take place quarterly. DTLA will also have the opportunity to be home to the 2028 Olympics.

USCThe University of Southern California is a private institution that was founded in 1880. It has a total undergraduate enrollment of 19,907, its setting is urban, and the campus size is 226 acres. It utilizes a semester-based academic calendar. University of Southern California was ranked #22 in the 2020 edition of Best Colleges.

Opportunity Zones are new incentives for investing in low-income communities.Opportunity Zones programs offer three tax incentives through a qualifiedOpportunity Fund.

Temporary DeferralTaxable income for capital gains reinvested into an Opportunity Fund have a temporary deferral. The deferred gain must be recognized on the earlier of the date on which the Opportunity Zone investment is disposed of or December 31, 2026.

Step-Up in BasisBasis is increased by 10% if the investment in the Opportunity Fund is help by the taxpayer for at least 5 years. An addition 5% of held for at least 7 years, thereby excluding up to 15% of the original gain from taxation.

Permanent ExclusionPermanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years.

The Opportunity Zones program is designed to incentivize patient capital investments in low-income communities nationwide.

LOCATION OVERVIEW

Koreatown

KoreatownKoreatown has recently emerged as one of Los Angeles’s most desirable neighborhoods. It’s proximity to Downtown, Hollywood, and the Westside make it attractive for residents and employers alike.

Already the densest neighborhood in Los Angeles, Koreatown has seen a tremendous amount of new development along with buzzing retail and entertainment establishments along the Wilshire corridor. The demographics and dynamics of the community have made Koreatown a hotbed for hotels, office, and multifamily.

The primary factor driving developers to build in Koreatown is its close proximity to Downtown Los Angeles and its central location near transit. With nearly 1,900 residental units now under construction according to CoStar Market Analytics, sizeable proposals continue to work their way through the entitlement process.

DevelopmentDespite covering only about six square miles, densely populated Koreatown has one of the largest apartment inventories in the metro, with about 55,500 units constituting more than 6% of Los Angeles inventory. The neighborhood still has a lot of older buildings that can be torn down and rebuilt, which explains why less than 10% of existing inventory is in the 4 and 5 Star segment despite the recent delivery of several high-end projects.

Koreatown continues to flourish with modern architectural design and has been attracting more population to the city. Being the center of entertainment, it has the upside of having all of the conveniences of lifestyle amenities when it comes to the latest foods, desserts, and nightlife.

Today’s discerning lifestyle renters seek thoughtfully designed floorplans with luxury finishes coupled with state of the art amenities in walkable urban locations. 1200 S Westmoreland Ave offers the opportunity to capture the imagination of such renters and represents a rare opportunity to develop in one of the highly regarded neighborhoods of Los Angeles.

LOCATION OVERVIEW

AERIALLOCATION OVERVIEW

AERIAL

LOCATION OVERVIEW

DEMOGRAPHICS

1200 S. WESTMORELAND AVE


Population

2024 Projection

2019 Estimate

2010 Census

Growth ‘19 - ‘24

Growth ‘10 - ‘19

Households

2024 Projection

2019 Estimate

2010 Census

Growth ‘19 - ‘24

Growth ‘10 - ‘19

Average Income

Median Income

3-Mile

683,880

669,602

614,452

2.13%

8.98%

3-Mile

240,823

235,304

213,344

2.35%

10.29%

$57,844

$36,605

1-Mile

105,389

103,728

98,139

1.60%

5.69%

1-Mile

34,308

33,808

32,233

1.48%

4.89%

$40,609

$30,410

5-Mile

1,392,672

1,364,150

1,254,600

2.09%

8.73%

5-Mile

493,645

483,267

443,335

2.15%

9.01%

$65,524

$41,582

MEET YOUR

LISTING TEAMMEET OUR

SENIOR LEADERSHIP

(424) [email protected] RE Lic. 01755842

An expert in Multifamily investment sales in southern California, Tom’s driven approach and scholarly understanding of submarket and macroeconomic trends guides him in his role as part of James Capital Advisor’s Multifamily division. He has underwritten and executed sales for private investors, syndicates, developers, REITs, and financial institutions and has completed numerous seller-financed installment sales of 1031 exchanges into both Multifamily and net leased assets. Tom began his career working at Marcus & Millichap in 2007. From 2015-2018, he worked as Founder and Managing Principal of Coldwell Banker Commercial Advisors’ El Segundo Office, where he led a Multifamily team that broke several sales records in the greater Los Angeles area.



Will specializes in Multifamily investment sales in southern California with an emphasis on the Los Angeles submarket. He began his career in the commercial real estate market in 2005 and has since developed an unrivaled knowledge of the apartment marketplace, priding himself in his ability to help clients achieve their real estate aspirations through his aggressive underwriting, strategic marketing, and navigation of the 1031 exchange process. With over 13 years’ experience, Will has successfully negotiated more than $300 million in investment real estate sales, continuously working with clients to create strategies that maximize value during the transaction process. A southern California native, he enjoys hiking, fishing in the Sierras, and surfing beaches near and far.



A multifamily investment associate, Tyler specializes in the acquisition, disposition, and repositioning of commercial assets in Los Angeles with an emphasis on the Koreatown market. His amicability, trustworthiness, and expertise have made him a favorite among clients looking to maximize value in their holdings. Before signing on with James Capital Advisors, Tyler consulted clients on how to maximize the value of their investments.

Currently studying geography and environmental studies at the University of California, Los Angeles, Tyler is enrolled in the ROTC (Reserve Officers Training Corps) and is preparing to commission as an Officer in the United States Army. At UCLA, he served as the President of Sigma Pi Fraternity Upsilon Chapter where he was awarded for his leadership and service.

Tyler CHUNGAssociate, Multifamily

(424) [email protected]

An American businessman, real estate expert, and former co-owner of the Carolina Panthers, Mark is a part owner and Vice Chairman of James Capital Advisors and an integral part of the company’s breakaway success. Graduating from Clemson University in 1987, he went on to receive his Master’s of Business Administration from the University of Virginia in 1987 and in 2013 was named a lifetime trustee of Clemson University.

Mark is also a shrewd franchise investor, with more than 50 Bojangles’ Famous Chicken ‘n Biscuits restaurants under his proprietorship across the U.S.

Mark RichardsonOwner, Vice Chairman

(424) [email protected]

Wayne Vance is JCA’s chief financial officer reporting to CEO Nate Barnes. As CFO, Wayne oversees the accounting, financial planning and analysis, internal audit and tax functions at JCA. Wayne joined James Capital in 2019 and has worked closely with JCA’s senior leadership since his arrival.

Wayne has nearly two decades of experince within various industries and a passion for working with high-paced, high-growth companies. He began his career in Silicon Valley as an auditor, growing a start up from $8M to $350M in revenue and 35 to 1,200 employees globally within 6 years.

Wayne VanceChief Financial Officer


As James Capital Advisors CEO, Nate manages the corporate direction and strategy of the company. His responsibilities include sales and marketing leadership, business development strategy, and financial and operational oversight. With degrees in both finance and real estate from California State University, Northridge, Nate’s astute grasp on the real estate market was pivotal in the early expansion and growth of James Capital Advisors.

Before signing on with James Capital Advisors, Nate served as the managing partner for Los Angeles-based regional franchise LA Tasty Food, LLC, operating popular brands like El Pollo Loco, Carl’s Jr, and Sbarro.

Nate BarnesChief Executive Officer


As Founding Member and Managing Director of James Capital Advisors, Mike guides the company in its vision, dedication, work culture, and commitment to success. In his role as Managing Partner and head of the corporate M&A real estate department, he oversees and evaluates all major corporate decisions and institutional accounts.

Mike boasts an undeniable track record of success in managing large portfolio sale-leaseback transactions. A graduate of the Argyros School of Business and Economics, he shares his expertise with his clients, advising them on matters great and small in the world of commercial real estate mergers and acquisitions.

Mike JamesFounder, Managing Director

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. & Broker of Record (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

JAMES CAPITAL ADVISORS, INC.

DISCLAIMERTHANK YOU FOR YOUR TIME

CONTACT

tyler chungAssociate, Multifamily






prime koreatown development james capital advisors …€¦ · 1200 s. westmoreland ave, los...

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