virginia avenue, hollywood, ca 90038 · research to ongoing advisory services, is offered to all...

PRIME HOLLYWOOD6 UNITS

5831VIRGINIA AVENUE,

HOLLYWOOD, CA 90038

$1,599,000

NOT ONSOFT-STORY LIST

06 About Broker

08 The Offering

09 Underwriting

11 Rent Roll

13 Property Photos

24 Sales Comparables

25 Area Overview

TABLE OF CONTENTS

Los Angeles, CA

At Compass Commercial, our focus is to provide clients with comprehensive and superior, trustworthy services. This full spectrum of value-added services, from market research to ongoing advisory services, is offered to all commercial property types including multi-family, office, retail, industrial, land and development investments. Our services go much further than purchasing or selling an asset. Working with clients, we identify their real estate investment goals and work side by side to build a strategic real estate investment plan.

About Compass CommercialCommercial Investment Services

Downtown Los Angeles, CAZACHARY KRASMAN | 310. 500. 3906 | [email protected]

The following outlines the distinctive platform of transaction and consultative services we offer our clients:

Acquisitions-Commercial Properties

We specialize in identifying underperforming investment opportunities. We provide accurate and reliable evaluation of an asset’s performance relative to other real estate and non-real estate investment alternatives. Using our financial analysis, investment alternatives are scrutinized for projected cash flow, residual values at risk.

Dispositions-Commercial Properties

Maximizing an asset’s value by developing individualized marketing plans is our area of expertise.

Commercial Leasing Services

We specialize in office, retail, and creative space.

Advisory Services

Asset management - We provide a comprehensive real estate investment analysis to maximize the investment return by determining if the asset should be sold, refinanced, renovated, or held.

Market Research

We have access to the latest commercial real estate information and trends that are essential in making informed decisions. This includes researching and analyzing competitive properties, prevailing market conditions, and building occupancy.

Our Services

Griffith Park ObservatoryZACHARY KRASMAN | 310. 500. 3906 | [email protected]

ABOUT THE BROKER

Zachary Krasman

COMPASS COMMERCIAL | LOS ANGELES

Zachary KrasmanSenior Associate

O 310. 500. 3906C 323. 682. [email protected] 01814990

Zach joined Compass Commercial in 2016 after a decade in commercial real estate. As a Partner in a group at IREA, his team closed more than $260,000,000 between 2012-2016 alone. As a client-focused veteran in the business, Zach brings with him that experience and market knowledge, allowing him to deftly guide and navigate his clients through each and every transaction. His attention to detail and client-first mentality has fueled his success and led him to the forefront of the industry. Zach specializes in the sale and acquisitions of multifamily and commercial properties in Los Angeles, with a keen knowledge and focus in West Hollywood, Beverly Hills, and Santa Monica.

Zach lives in Santa Monica with his husband, daughter, and two black labs. He has a passion for architecture, technology, and the culinary arts.

COMMERCIAL

ZACHARY KRASMAN | 310. 500. 3906 | [email protected]

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5831 Virginia Avenue

COMPASS COMMERCIAL | LOS ANGELES 7

PROPERTY OVERVIEW




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THE OFFERING

Price

Price/ Sq Ft

Price/ Unit

Units

Lot Sq Ft

Building Sq Ft

6

7,499

5,050

Year Built 1959

CAP Current / Market

GRM Current / Market

No. of Parcels 1

Zoning R3 (TOC Tier 2)

APN 5534-018-006

HIGHLIGHTS

• Prime Hollywood Location

• 4 of 6 Units Have Been Updated Upon Turnover

• Measure JJJ: TOC Tier 2 (60% Density Bonus)

• 1 Block North of Hollywood Forever

• 3 Blocks to Hollywood Pantages Theatre

• Recently Updated Roof

• Tremendous Upside Potential

$1,599,000

$317

$266,500

The subject property is a six-unit apartment complex—duplex + fourplex—built in 1959 and located in the Hollywood submarket of Los Angeles. Ideally situated on Virginia Avenue, just north of Santa Monica Blvd between Gower and Wilton, these units average nearly 850 sf each. This fully-occupied property boasts a mix of four 2 bedroom, 1 bathroom units and two 1 bedroom, 1 bathroom units. The prime location, adjacent to many of Hollywood’s big-name studios including Sunset Gower and Sunset Bronson, and the world-famous Hollywood Forever, allows occupants to enjoy all of Hollywood’s world-famous entertainment, dining and culture, within close proximity of the comfort of their home.

• Not on the Soft-Story Retrofit List

The improvements are built on a 7,499 square foot lot with a total rentable square footage of 5,050. There are 8 on-site parking spaces as well as on-site laundry. Each well maintained unit is individually metered for gas and electricity. Development potential is also an option. The property is zoned R3-1, allowing for 9 units, by right. The lot is recognized as Tier 2 under the new TOC Guidelines under Section 6 of Measure JJJ. This allows for a 60% density bonus and less restrictive parking requirements (1 space/ dwelling). With the density bonus the number of buildable units potentially increases to 15.

4.14% / 7.69%

14.60 / 9.52


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UNDERWRITING

PROPERTY ABSTRACT

Units 6

Year Built 1959

Lot Sq Ft 7,499

Bldg Gross Sq. Ft. 5,050

Parking Spaces 8

Zoning LAR3

Neighborhood Hollywood

FINANCIAL INDICATORS

Price

Down Payment

Down Payment % 100%

Current CAP

Market CAP

Current GRM

Market GRM

Cost Per Sq. Ft.

Cost Per Unit

Cash on Cash Return

Expenses Per Unit

Expenses Per Sq Ft

ESTIMATED EXPENSES

Taxes 1.25% of Price

Insurance Actual $3,396

Repairs/Maint Actual $5,954

Utilities: $55/ Unit/ Month $3,960

Trash/Pest/Gardener $35/ Unit/ Month $2,520

Off-Site Manager

Total Expenses

$19,988

4% of SGI $4,248

$40,066

$1,599,000

$1,599,000

4.14%

7.69%

14.60

9.52

$317

$266,500

4.14%

$6,678

$7.93


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SOURCE OF INCOME

CURRENT MARKET

No. of Units Unit Type Mo. Rent/Unit Mo. Income Mo. Rent/Unit Mo. Income

2 1+1 $1,265 $2,529 $1,950 $3,900

4 2+1 $1,624 $6,495 $2,500 $10,000

Total Rental Income $9,024 $13,900

Est. Laundry Income $100 $100

Total Monthly Income $9,124 $14,000

ESTIMATED ANNUALIZED OPERATING DATA

CURRENT MARKET

Scheduled Gross Income $109,491 $168,000

Less Vacancy 3.0% $3,285 3.0% $5,040

Gross Operating Income $106,206 $162,960

Less Expenses

Net Operating Income

Less Loan Payments $0 $0

Pre-Tax Cash Flow

Percentage Return

UNDERWRITING (CONTINUED)

$40,06637.7% 24.6% $40,066

$66,141 $122,894

$66,141

4.14%

$122,894

7.69%


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UNIT TYPE MOVE-IN-DATE RENT

1 1+1 1/1/00 $984

2 2+1 12/23/15 $1,850

3 1+1 5/10/18 $1,545

4 2+1 1/1/16 $1,850

5 2+1 1/1/00 $900

6 2+1 4/15/18 $1,895

Monthly Income $9,024

Annual Income $108,291

RENT ROLL


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PROPERTY PHOTOS




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INTERIOR PHOTOS


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AERIAL PHOTOS


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SALES COMPARABLES




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5

3

2

1

4

Year Built Sales Price# of Units

Price / UnitBldg Gross Sq. Ft.

Avg. Gross Sq. Ft. /

UnitLot Gross Sq. Ft. Price / Sq. Ft. CAP Rate GRM COE

1. 1216 N Kenmore Ave 1927 $2,925,000 8 $365,625 7,896 987 9,148 $370 N/A N/A 10/10/18

2. 1403 Tamarind Ave 1957 $3,600,000 16 $225,000 5,198 325 13,007 $693 3.16% 19.51 10/04/18

3. 1408 N Las Palmas Ave 1957 $1,345,000 6 $224,167 3,432 572 7,144 $392 3.56% 18.98 09/25/18

4. 5500 Barton Ave 1921 $1,502,500 5 $300,500 2,816 563 8,564 $534 N/A N/A 09/08/18

5. 5423 Lexington Ave 1913 $1,850,000 6 $308,333 4,179 697 11,543 $443 N/A N/A 08/15/18

Averages 1935 $2,244,500 8 $284,725 4,704 629 9,881 $486 3.36% 19.25

Subject Property 1959 6 5,050 842 7,499

COMPARABLES

$1,599,000 $266,500 $317 4.14% 14.60


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HOLLWOOD, CA

Hollywood is a neighborhood in the central region of Los Angeles, California. This ethnically diverse, densely populated neighborhood is notable as the home of the U.S. film industry, including several of its historic studios, and its name has come to be a shorthand reference for the industry and the people in it. A larger-than-life symbol of the entertainment business, Hollywood beckons tourists with landmarks like TCL Chinese Theatre and star-studded Walk of Fame. Highlights include Paramount Pictures, historic music venues like the Hollywood Bowl, and Dolby Theatre, home of the Oscars. Scenesters can choose from improv comedy clubs, retro-cool bars and velvet-roped nightclubs. Locals frequent eateries in nearby Thai Town.

AREA OVERVIEW

CONFIDENTIALITY AND DISCLAIMER

The information contained in the offering is confidential, furnished solely for the purpose of review by a prospective purchaser of the subject property. The material is based in part upon information supplied and in part upon information obtained by Compass Commercial from sources it deems reasonably reliable. No warranty or representation, expressed or implied, is made by the owner, Compass Commercial, or any of their respective affiliates, as to the accuracy or completeness of the information contained herein or any other written or oral communication transmitted to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to be applied in connection with the information or such other communications. Without limiting the generality of the foregoing, the information shall not be deemed a representation of the state of affairs of the subject property or constitute an indication that there has been no change in the business or affairs of the subject property since the date of preparation of the information. Prospective purchasers should make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the site.

The Offering Memorandum was prepared Compass Commercial. It contains select information pertaining to the subject property and does not purport to be all inclusive or to contain all of the information which a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond control and, therefore, are subject to material change or variation. An opportunity to inspect the subject property will be made available to qualified prospective purchasers.

In the Offering certain documents and other materials are described in summary form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents.

The Offering is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by Compass Commercial or the owner. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the subject property described herein.

The owner and Compass Commercial expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offer to purchase the subject property and/or to terminate discussions with any party at any time with or without notice. The owner shall have no legal commitment or obligation to any interested party reviewing the Offering or making an offer to purchase the subject property unless a written agreement for the purchase of the subject property has been fully executed and delivered by the owner and such party and any conditions to the owner’s obligations there under have been satisfied or waived and then only to the extent expressly provided for therein. Compass Commercial is not authorized to make any representations or agreements on behalf of the owner.

Zachary KrasmanSenior Associate

O 310. 500. 3906C 323. 682. [email protected] 01814990

Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.

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virginia avenue, hollywood, ca 90038 · research to ongoing advisory services, is offered to all...

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