s. st. andrews place los angeles ca

544 S. ST. ANDREWS PLACE • LOS ANGELES CA

AVAILABLE | 24-Unit Multi-Family Building

Matt Benwitt Associate 818.444.4964 [email protected] License # 00929927

For more information please contact: John Battle, SIOR Principal / Managing Director 818.444.4908 [email protected] License # 00700493

Lee & Associates® - LA North/Ventura, Inc. 2


The material contained herein is confidential and is presented strictly as information for the exclusive use of the prospective purchaser. Acceptance of this brochure by the prospective purchaser constitutes an agreement not to divulge, share or distribute the information to any other party, except legal counsel and financial advisors, without the specific written authorization of the Seller or Lee & Associates.

The materials herein have been obtained from sources believed to be reliable. Nevertheless, the Seller nor Lee & Associates make no warranties or representations, expressed or implied, concerning the accuracy or completeness of this information. This document is submitted subject to errors, omissions, changes in price; rental, market or otherwise and withdrawal without notice.

No broker or agent, other than Lee & Associates Seller’s exclusive representative, is authorized to present this investment opportunity.

Interested buyers should be aware that the owner (the “Seller”) of the property known as 544 S. St. Andrews Place, Los Angeles, CA 90020 (“Property”) is selling the property in “AS IS” CONDITION WITH ALL FAULTS, WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE, EXCEPT WARRANTY OF TITLE. Prior to and/or after contracting to purchase as appropriate, Buyer will be given a reasonable opportunity to inspect and investigate the Property and all improvements thereon, either independently or through agents of Buyer’s choosing.

Buyer shall not be entitled to, and should not, rely on the Seller, or its agents as the (i) the quality, nature, adequacy and physical condition of the Property including, but not limited to the structural element, foundation, roof, appurtenances, access, landscaping, parking facilities and the electrical, HVAC, plumbing, sewage, and utility systems, facilities and appliances, (ii) the quality, nature adequacy and physical condition of soils and geology and the existence of ground water, (iii) the existence, quality, nature adequacy and physical condition of utilities serving the Property, (iv) the development potential of the Property, its habitability, merchantability, or fitness, suitability or adequacy of the Property for any particular purpose, (v) the zoning or the legal status of the Property, (vi) the Property’s or its operations’ compliance with applicable codes,

laws, regulations, statutes, ordinances, covenants, conditions and restrictions of any governmental, quasi-governmental entity or any other person or entity, (vii) the quality of any labor and materials, (viii) the compliance of Property with any environmental protection, pollution or land use laws, rules, regulations, orders or requirements including but not limited to those pertaining to the handling, generating, storing or disposing of any hazardous materials, and (ix) except as expressly provided otherwise in an executed contract of sale, the condition of title and the nature, status and extent of any right-of-way, lease, right of redemption, possession, lien, encumbrance, license, reservation, covenant, condition restriction and any other matter affecting the title. Although Seller’s predecessors may have performed work, or contracted for work performed by third parties in connection with the Property, the Seller, and its agents shall not be responsible to Buyer or any successor on account of any errors or omissions or construction defects of such predecessors and/or third parties.

The Seller reserves the right to withdraw the property being marketed at any time without notice, to reject all offers, and to accept any offer without regard to the relative price and terms of any other offer. Any offer to buy must be: (i) presented in the form of a non-binding letter of intent, (ii) incorporated in a formal written contract of purchase and sale to be prepared by or on behalf of the Seller and executed by both parties; and (iii) approved by Seller, and such other parties who may have an interest in the Property. Neither the prospective Buyer nor Seller shall be bound until execution of the contract of purchase and sale, which contract shall supersede prior discussions and constitute the sole agreement of the parties.

The Seller shall not be responsible for the payment of any commission, finder’s fee or other form of compensation to Buyer’s broker other than as set forth in Seller’s commission agreement with Lee & Associates-LA North/Ventura, Inc.

SELLER AND ITS AGENTS MAKE NO REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION.

INFORMATIONAL BROCHURE



CONTENTS

SECTION I EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . 5

SECTION II PROPERTY HIGHLIGHTS . . . . . . . . . . . . . . . 7

SECTION III AREA OVERVIEW . . . . . . . . . . . . . . . . . . . . 13

SECTION IV FINANCIAL OVERVIEW . . . . . . . . . . . . . . . 15

SECTION V SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . 20

John Battle, SIOR Principal / Managing Director

818.444.4908 [email protected]

License # 00700493

Lee & Associates®-LA North/Ventura, Inc. Corporate ID # 01191898 A Member of the Lee & Associates Group of Companies

26050 Mureau Road, Suite 101 Calabasas, California 91302

Matt Benwitt Associate

818.444.4964 [email protected] License # 00929927

Lee & Associates® - LA North/Ventura, Inc.

SECTION I EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Address 544 S. St. Andrews Place Los Angeles, CA 90020

Number of Units 24

Building Square Footage 21,558 Square Feet

Land Area 9,016 Square Feet

Asking Price $6,150,000

Cost Per Unit $256,250

Cost Per Square Foot $285

Current NOI $115,434

Proforma NOI $189,479

544 S. St. Andrews Place is a twenty-four (24) unit apartment building located in the densely populated area of Los Angeles known as Koreatown. The three (3) story property contains twenty-one (21) one (1`) bedroom one (1) bath units and three (3) studios. The fully occupied building offers the long-term investor tremendous upside in rents as the units become available over time. The property is located just North of Sixth Street within walking distance of the Wilshire Corridor that contains numerous retail amenities. In addition the Metropolitan Transit Authority (MTA) is under construction to extend the Subway from its current terminus all the way to West Los Angeles and the world renowned campus of UCLA. Currently there is a major MTA station at Wilshire Boulevard and Western Avenue which is merely 4/10th of a mile from 544 S. Saint Andrews Place. Entertainment venues such as the historic Wiltern Theatre and CGV Cinemas are also within walking distance. The resurgent downtown Los Angeles neighborhood is minutes away by utilizing public transportation or the services of Uber or Lyft.

The specifications of 544 S. Saint Andrews Place are as follows:


SECTION II PROPERTY HIGHLIGHTS



PROPERTY HIGHLIGHTS

544 S. Saint Andrews Place is a true value add investment opportunity located in one of the “hottest” areas of Southern California-Koreatown. Within walking distance of the Metro station at Wilshire and Western and iconic entertainment venues such as The Wiltern Theatre this unique property has tremendous upside in rental rates. The three (3) story property offers the following amenities:

■ Location is within ten (10) minutes of the ever-expanding Downtown Los Angeles

■ Walking distance to the MTA station at Wilshire Blvd & Western Ave

■ Secured covered parking for 25 cars

■ Current rents at least thirty percent (30%) below market

■ Numerous retail and entertainment venues within ten (10) minutes

■ 100% occupied

Koreatown has become one of the more desirable areas to live by the current generation of Millennials. This is due to the varied type of housing available, proximity to the expanding employment centers in downtown Los Angeles and the varied types of entertainment and restaurant venues in the area.



PROPERTY HIGHLIGHTS amenities



PROPERTY HIGHLIGHTS exterior aerial photos



PROPERTY HIGHLIGHTS exterior street photos


SECTION III AREA OVERVIEW



544 S. St. Andrews Place is located in one of the “hottest” areas of Southern California-Koreatown. Over the past five years multi-family developers have discovered the desirability of this area by the millennial generation. The close proximity to public transportation, downtown Los Angeles and numerous retail and entertainment venues contribute to the desire of this diverse group to live in this area. Within a short distance of 544 S. Saint Andrews Place residents have access to:

■ Ralph’s Full Service Market

■ 24 Hour Fitness

■ Vons

■ Chase, Citibank, Bank of America & Us Bank

■ Walgreens

■ CVS

■ Wiltern Theatre

■ MTA Station at Wilshire & Western

■ Starbucks (several)

■ McDonald’s, Carl’s Jr., Subway, Chipotle, etc. etc. etc.

AREA OVERVIEW


SECTION IV FINANCIAL OVERVIEW



FINANCIAL OVERVIEW analysis

MULTIFAMILY INVESTMENT INFORMATION SHEET

Matt Benwitt John Battle

PROPERTY NAME NUMBER OF UNITS 24

ADDRESS BUILDING SIZE (SQ. FT.) 21,558

CITY, STATE, ZIP LOT SIZE (SQ. FT.) 9,016

PRICE COST PER UNIT $256,250

YEAR BUILT COST PER SQFT $285.28

□ Great location □ Potential 28% rent upside

RENTAL INFORMATIONNO. UNITS BDRMS BATHS SQ. FT. (EST.) AVE. $/SF AVG. RENT AVE. $/SF AVG. RENT Monthly Income

3 Studio 1 600 $1.29 $772.30 $1.63 $975 $2,92521 1 1 750 $1.26 $945.80 $1.62 $1,217 $25,550

24 Scheduled Monthly Income: $28,475

ANNUAL PROPERTY OPERATING DATASCHEDULED INCOME

AS % GOI AS % GOI AS % GOIScheduled Gross Income $266,144 98.75% $341,701 99.03% Taxes (Est. 1.25%) $76,875 28.52%RUBS $0 0.00% $0 0.00% Insurance $11,572 4.29%Laundry Income $3,360 1.25% $3,360 0.97% Utilities $24,500 9.09%Gross Operating Income $269,504 CURRENT MARKET $345,061 Repairs/Maintenance $10,000 8.00%Vacancy Reserve $5,390 2.00% $6,901 2.00% Off-Site Management $10,646 4.00%

Effective Gross Income $264,114 22.82 17.82 $338,160 Landscaping ($125/mo) $1,500 0.56%Expenses $148,681 59.56% $148,681 43.09% Pest Control ($72/mo) $864 0.32%

Net Operating Income $115,434 42.83% 1.88% 3.08% $189,479 54.91% Elevator ($100/mo) $1,500 0.56%Debt Service $181,526 $181,526 Pool ($100/mo) $0 0.00%

Pre-Tax Cash Flow $66,092 -2.15% 0.26% $7,953 Trash ($510/mo) $6,120 2.32%Principal Reduction $51,714 $51,714 Telephone ($40/mo) $480 0.18%Return on Equity $14,378 -0.47% 1.94% $59,667 On-Site Management: $0 0.00%

License/Permits $2,224 0.83% EXISTING FINANCING INFORMATION Miscellaneous($100/un) $2,400 0.89%

Loan Amount $3,075,000 Monthly Loan Payment $15,127 N/A $0 0.00%Down Payment $3,075,000 50% Annual Loan Payment $181,526 TOTAL EXPENSES $148,681 59.56%5-Year Fixed Rate 4.25% Year 1 Interest Amount (approx.) $129,812

Amortization Period (Yrs) 30 Year 1 Principal Paydown (approx.) $51,714 Expense / NRSF

Expense / Unit

26050 Mureau Road, Suite 101 | Calabasas, CA 91302

LEE & ASSOCIATES MULTIFAMILY ADVISORY GROUP

Lee Associates - LA North/Ventura, Inc.

544 S. St. Andrews Place

544 S. St. Andrews Place

Los Angeles, CA

$6,150,000

1971

INVESTMENT HIGHLIGHTS

□ Value add opportunity

Market IncomeMonthly Income

$6,195

GRM

CAP Rate

Cash on Cash

Return On Equity

$2,317

818-233-4388

$19,862

$6.90

$22,179

MARKET INCOME ESTIMATED ANNUAL EXPENSES

Scheduled Income



FINANCIAL OVERVIEW rent roll

Unit Rent Move-In Date Next IncreaseUnit Type

Bed + Bath Market Rent201 995 9/1/2013 6/1/2019 1 1,250202 859 1/1/1995 5/1/2019 1 1,250203 1030 9/15/2009 5/15/2019 1 1,200204 790 10/20/2002 3/20/2019 1 1,150205 1048.50 1/1/2007 1/1/2019 1 1,250206 745 8/19/2000 3/19/2019 1 1,150207 1060 10/1/2013 5/1/2019 1 1,250208 849 12/1/2014 10/1/2018 studio 975301 750 2/1/1996 5/1/2019 1 1,250302 1019 9/1/2010 5/1/2019 1 1,250303 955 4/15/2011 11/15/2018 1 1,200304 935 7/10/2010 3/10/2019 1 1,150305 995 11/15/2012 6/15/2019 1 1,250306 980 3/1/2007 5/1/2019 1 1,150307 995 3/1/2011 11/1/2018 1 1,250308 598 11/15/1998 5/15/2019 studio 975401 848 4/1/1997 5/1/2019 1 1,250402 975 8/6/2000 5/6/2019 1 1,250403 785 6/1/1997 5/1/2019 1 1,200404 1125 4/1/2017 6/1/2019 1 1,150405 1030 1/1/2014 3/1/2019 1 1,250406 1075 9/1/2016 3/1/2019 1 1,200407 867 5/25/1999 5/25/2019 1 1,250408 870 9/1/2016 3/1/2019 studio 975

Current MarketMonthly $22,179 $28,475

Annual $266,142 $341,700

Largest units, with balconySame size as largest units but without balconySmaller 1 bedroomStudio

Unit #205 is the manager's unit



FINANCIAL OVERVIEW sold comparables

Sale $/SF Building CapAddress Sale Price Date Units $/Unit Building SF Rate Built

532 S. Gramercy $5,600,000 6/6/2018 24 $233,333 $308 18,174 2.68% 1971

514 S. Gramercy $6,100,000 6/6/2018 24 $254,167 $310 19,699 3.77% 1957

420 S Manhattan Place $2,600,000 10/3/2017 12 216,667 $322 8,066 1958

357 S St Andrews Place $4,800,000 5/27/2017 23 $208,696 $309 15,517 3.60% 1964

501 S Kingsley Drive $4,625,000 7/9/2018 22 $210,227 $410 11,274 3.63% 1956

Average $140,386 $207

Subject544 S. St. Andrews Pl. $6,150,000 24 $256,250 $285.28 21,558 1.82% 1971



FINANCIAL OVERVIEW currently on market

$/SF Building CapAddress Asking Price Status Units $/Unit Building SF Rate Built

525 S Gramercy Place $9,300,000 In Contract 17 364,706 $330 18,764 2.80% 1955Los Angeles

537 S Gramercy Place $3,400,000 In Contract 8 456,250 $562 6,490 3% 1958Los Angeles

Average $273,652 $297 2.90%

Subject544 S Gramercy $6,150,000 24 $256,250 $285.28 21,558 1.82% 1971


SECTION V SUMMARY

Matt Benwitt Associate 818.444.4964 [email protected] License #00929927

Lee & Associates®-LA North/Ventura, Inc. • Corporate ID # 01191898 • A Member of the Lee & Associates Group of Companies26050 Mureau Road, Suite 101, Calabasas, California 91302

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.

For additional information and to schedule a tour of the property, please contact:

John Battle, SIOR Principal / Managing Director 818.444.4908 [email protected] License # 00700493

544 S. ST. ANDREWS PLACE • LOS ANGELES

544 S. St. Andrews Place offers the long term investor the opportunity to create tremendous additional value due to the following:

■ Koreatown Location

■ Walking distance to the MTA Station at Wilshire Blvd

& Western Ave

■ Value-Add Opportunity

■ Current Average Rents are Approximately 28% Below

Market

■ High Barriers To Entry For New Development

SUMMARY

s. st. andrews place los angeles ca

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