1036 north genesee avenue west hollywood, ca 90046 · 2018-12-11 · 4 executive summary the...

WEST HOLLYWOOD, CA 900461036 NORTH GENESEE AVENUE

TABLE OF CONTENTS

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JEFFREY BENSONFirst Vice President InvestmentsDirector, National Multi Housing GroupDirect | [email protected]: CA 01327285

EXCLUSIVELYLISTED BY:

RICHARD RINGERSenior Managing Director InvestmentsSenior Director, National Housing GroupDirect | [email protected]: CA 01494512

executive summary

market overview

market comparables

fianancial summary

4E X E C U T I V E S U M M A R Y

THE OFFERINGMarcus & Millichap is pleased to present 1036 North Genesee Avenue, a 10-unit multifamily property located in the desirable and trendy community of West Hollywood. Constructed in 1960, the two-sto-ry building offers semi-subterranean parking for 10 vehicles. The 8,190 square-foot building, which is situated on a 6,565 square-foot lot, has a unit mix composed of one two-bedroom/one-bathroom unit, one two-bedroom/two-bathroom unit, and eight one-bedroom/one-bathroom units.

This property is located east of Fairfax Avenue, one block south of Santa Monica Boulevard and is within walking distance to many of the restaurants, bars, shopping and entertainment West Hollywood is known for. Tenants are able to walk to Whole Foods, Starbucks, Trader Joe’s, The Griddle Café, Laugh Factory, Bar Marmont, French Market Place, 7-Eleven, Bank of America, Shell and Laurel Park to name a few. With a tremendous 70% +/- rental upside, 1036 North Genesee Avenue will appeal to any savvy investor looking to acquire a well-maintained building, with a value add component, in the highly sought-after West Hollywood community.

1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046 RINGER | BENSON AT MARCUS & MILLICHAP

Address 1036 North Genesee AvenueWest Hollywood, California 90046

APN 5530-015-013Zoning WDR3C*Number of Units 10Number of Stories 2Number of Buildings 1Year Built 1960Building SF 8,190 SFLot Size 6,565 SFType of Ownership Fee Simple

building

property summary

INVESTMENT HIGHLIGHTS

P r i m e W e s t H o l l y w o o d

L o c a t i o n

S i g n i f i c a n tR e n t a l U p s i d e

O n - S i t eP a r k i n g f o r A l l

U n i t s

9 5 W a l kS c o r e


Strategic Value Add: InteriorsThere is a clear opportunity in the submarket to renovate all units to higher-end specifications inlcuding new cabinet faces, stainless steel appliances, quartz countertops, modern lighting and fixtures. By renovating to the standards depicted below, 1036 North Genesee will be able to further augment the income stream.

INTERIOR IDEAS

1 NEW CABINET FACES 2 MODERN APPLIANCES 3 TILE BACKSPLASH

4 UPDATED LIGHTING 5 QUARTZ COUNTERTOPS 6 STAINLESS STEEL FIXTURES

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8MARKET

OVERVIEW

WEST HOLLY WOODWest Hollywood is a dense, lively and walkable neighborhood with a bustling nightlife and high concentration of well-known restaurants, bars, music and entertainment venues as well as celebrity hang-outs, such as The Troubadour, Soho House, The Abbey, Whisky Bar, Chateau Marmont, among many others. Just minutes from the Sunset Strip, tourist-centric Hollywood, Beverly Hills and a newly resurgent Downtown Los Angeles, West Hollywood is a prime area for an active population.

T H E Q U I N T E S S E N T I A L U R B A N L I F E S T Y L E


1036 N GENESEE AVENUE

PRIME WEST HOLLY WOOD LOCATION1036 N Genesee Avenue is located in prime West Hollywood between Santa Monica Boulevard and Fairfax Avenue. This location is one of the most desirable areas of West Hollywood, known for its great walkability with a walk score of 95 and a 60 transit score. From this location tenants can walk to the world famous Sunset Strip and the hip and trendy Santa Monica Boulevard with many places for shopping, dining, entertainment and nightlife. This location is also serviced by several highly-rated public schools, such as Laurel Elementary School and Fairfax High School, both about a half mile away.

The Grove Shopping Mall 1.3 milesThe Farmers Market 1.5 milesCedar Sinai Medical Center 2.3 milesBeverly Center Shopping Mall 2.0 milesPacific Design Center 1.8 milesRobertson Shopping Area 2.5 miles

POPULAR DESTINATIONS WITHIN 2 MILES

LACMA 2.1 milesSunset Strip 1.8 milesRunyon Canyon 1.6 milesTarget .9 milesHollywood & Highland 1.9 milesBeverly Hills 3.0 miles

WALK SCORE

95 "Walker’s Paradise"Daily errands do not

require a carTRANSIT SCORE

57 "Good Transit"Many nearby public

transportation options

1036 NO

RTH G

ENESEE AVEN

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TargetCityGrid MediaSunset Marquis1 OAKMondrian Los AngelesPavilionsAndaz West HollywoodWhole Foods MarketN Compass IncDailey & Associates IncThe London West HollywoodBest BuyThe Standard, Hollywood

KashtanBeriozka OneOpen Cafe Productions IncKung Pao BistroEl Chile TaqueriaSubway RestaurantsAstro BurgerFatburgerGalanga Thai FusionOki DogEmployees OnlyScrumptious Cafe BakeryLos Tacos

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MAJOR EMPLOYERS LOCAL AMENITIESDINING & DRINKING

Bike Score“BIKEABLE”Mostly flat, minimal bike lanes.

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2532

191835

3816

3414 15

2331

2212

9211

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36137

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4

6

37

17 2120

8

2628

29

33

14151617181920212223242526

DelilahLaurel HardwareGessoIrv’s BurgersCape Seafood & ProvisionsSurly GoatFubarHarlowe Bar

272829303132333435

Whole FoodsTrader Joe’sBristol FarmsBank of America

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ROBERTSON LANERobertson Lane plans to create a new pedestrian pathway connecting the West Hollywood Design District, Boystown and West Hollywood Park. In addition to a 30 foot wide pedestrian lane, the development plans to feature restaurants, bars, retail and nightlife, 241 hotel rooms, over 1,000 parking spaces as well as public open spaces.

8159 SUNSETFrank Gehry-designed mixed use project with retail, residential and 27,000 SF central plaza.

SUNSET TIMEIn the former House of Blues location, 35,000 SF of retail space, a nightclub hotel rooms, condos and apartments.

8500 SUNSET RESIDENCESTwo eight-story towers at La Cienega and Sunset.8950 SUNSET169-room Boutique hotel with residences, a rooftop pool and restaurants.

WEST HOLLYWOOD EDITION150-room Ian Schrager hotel, including high-end condos and lush landscaping.

SUNSET BOULEVARDDEVELOPMENTS

WEST HOLLYWOOD PARK DEVELOPMENT

LA BREA/WILLOUGHBYFour-story mixed-use project with 33,500 SF of ground floor retail and 179 residential units.

LA BREA/FOUNTAINSix-story mixed-use project with 18,000 SF of retail and 187 apartments in the old Jon's market space.

LA BREA/LEXINGTONFive-story, 32-unit building of affordable housing.

LA BREA/SANTA MONICASix-story, mixed-use project with 12,800 SF of retail space and 184 apartments.

LA BREA/ROMAINEFormer industrial building will be refurbished into 11,500 SF of retail space and 33,000 SF of office space

LA BREA BOULEVARDDEVELOPMENTS1036 N GENESEE AVENUE


11MARKET

COMPARABLES

Untitled map

Untitled layer

1036 N Genesee Ave

1001 N Orange Grove Ave

1001 N Ogden Dr

939 N Ogden Dr

1009 N Edinburgh Ave

1319 Havenhurst Dr

1267 N Laurel Ave

1246 N Hayworth Ave

1122 N Hayworth Ave

2

AVERAGE PRICE PER UNIT

$359,640

AVERAGE PRICE PER SF

$423.48

PROPERTYYEAR BUILT UNITS PRICE

CAP RATE GRM $/UNIT $/GROSS SF

SALEDATE STUDIO 1 BED 2 BED 3 BED

1036 N Genesee

West Hollywood, CA 90046

1960 10 $3,300,000 3.11% 18.32 $330,000 $402.93 - 8(1+1) 1(2+1)1(2+2)

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1 1001 N Orange Grove


1958 12 $4,000,000 4.35% 14.73 $333,333 $419.55 10/5/2018 - 10(1+1) 1(2+1)1(2+1.5)

-

2 1001 N Ogden Drive


1959 19 $6,795,200 3.58% 16.69 $357,642 $461.38 9/10/2018 - 14(1+1) 5(2+2) -

3 939 N Ogden Drive


1957 16 $5,604,800 3.56% 16.47 $350,300 $416.03 9/10/2018 - 5(1+1) 5(2+1) 6(3+2)

4 1009 N Edingburgh Avenue


1971 9 $3,525,000 4.46% 15.67 $391,667 $430.51 7/12/2018 1(0+1) 4(1+1) 4(2+2) -

5 1319 Hayvenhurst Drive


1953 14 $5,500,000 3.26% - $392,857 $418.19 8/8/2018 - 9(1+1) 5(2+2) -

6 1267 N Laurel Avenue


1958 22 $7,300,000 3.59% 17.49 $331,818 $399.96 6/1/2018 4(0+1) 12(1+1) 6(2+2) -

7 1246 N Hayworth Avenue


1962 18 $6,726,000 3.30% 17.82 $373,667 $417.30 4/24/2018 - 10(1+1) 8(2+2) -



1960 24 $8,300,000 3.23% 17.80 $345,833 $424.90 8/24/2018 - 16(1+1) 8(2+2) -

SALES COMPARABLES

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16FINANCIAL SUMMARY

PROPERTY 1 BED / 1 BATH 2 BED / 1 BATH 2 BED / 2 BATH

1 939 N Ogden Drive


$2,375 -

2 1001 N Ogden Drive


- - $2,800

3 1218 N Laurel Avenue


$2,375 $2,695

4 1217 N Vista Street


$2,250 -



$2,250 -

6 925 N Curson Avenue


- - $2,850



$2,300 - $3,195



- - $2,800



$2,250 - -

RENT COMPARABLES

Untitled map

Untitled layer

939 N Ogden Dr

1001 N Ogden Dr

1218 N Laurel Ave

1217 N Vista St

1423 N Hayworth Ave

925 N Curson Ave

1122 N Hayworth Ave

2

1

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5

6

7

81036 N GENESEE AVENUE

9


# UNIT TYPE CURRENT PRO FORMA

1 2 Bedroom/1 Bathrom $822 $2,650

2 1 Bedroom/1 Bathroom * $2,350 $2,350

3 2 Bedroom/2 Bathroom $992 $2,800

4 1 Bedroom/1 Bathroom $1,444 $2,350





9 1 Bedroom/1 Bathroom (Large) * $2,500 $2,500


*#2 Vacant Unit and #9 Vacant Unit with Separate Dining/Breakfast Area

TOTAL - VACANT $0 $0

TOTAL - OCCUPIED $15,008 $24,400

TOTAL $15,008 $24,400

INCOME CURRENT PRO FORMA

Gross Scheduled Rent $180,098 $292,800

Loss/Gain to Lease $112,702

Vacancy $3,602 $5,856

EFFECTIVE RENTAL INCOME $176,496 $286,944

Laundry Income $1,800 $1,800

EFFECTIVE GROSS INCOME $178,296 $288,744

EXPENSES CURRENT PRO FORMA

Real Estate Taxes $39,471 $39,471

Insurance $2,500 $2,500

Utilities (Includes Trash) $12,450 $12,450

Repairs & Maintenance $9,513 $9,513

Landscaping $1,800 $1,800

Pest Control $960 $960

Reserves $2,000 $2,000

Management Fee $7,060 $11,478

TOTAL EXPENSES $75,754 $80,172

Per Unit $7,575 $8,017

Per SF $9.25 $9.79

Percent of EGI 42.5% 27.8%

NET OPERATING INCOME $102,542 $208,572

RENT ROLL OPERATING STATEMENT


# OF UNITS UNIT TYPE CURRENT RENT MONTHLY INCOME PRO FORMA RENT MONTHLY INCOME

8 1 bed/1 batth $1,261 - $2,500 $13,194 $2,350-$2,500 $18,800

1 2 bed/1 bath $822 $822 $2,650 $2,650

1 2 bed/2 bath $992 $992 $2,800 $2,800

10 TOTAL $15,008 $24,400

PRICE $3,300,000

Number of Units 10

Price/Unit $330,000

Gross SF 8,190

Price/SF $402.93

CAP Rate - Current 3.11%

CAP Rate - Pro Forma 6.32%

GRM - Current 18.32

GRM - Pro Forma 11.27

Year Built 1960

Lot Size 6,565

Type of Ownership Fee Simple

OFFERING SUMMARY

1036 North Genesee AvenueWest Hollywood, CA 90046

INCOME CURRENT PRO FORMA Gross Scheduled Rent $180,098 $292,800

Loss/Gain to Lease $112,702

Vacancy $3,602 $5,856

EFFECTIVE RENTAL INCOME $176,496 $286,944

Laundry Income $1,800 $1,800

EFFECTIVE GROSS INCOME $178,296 $288,744

EXPENSES CURRENT PRO FORMA Real Estate Taxes $39,471 $39,471

Insurance $2,500 $2,500

Utilities (Includes Trash) $12,450 $12,450

Repairs & Maintenance $9,513 $9,513

Landscapping $1,800 $1,800

Pest Control $960 $960

Reserves $2,000 $2,000

Management Fee $7,060 $11,478

TOTAL EXPENSES $75,754 $80,172

Per Unit $7,575 $8,017

Per SF $9.25 $9.79

Percent of EGI 42.5% 27.8%

NET OPERATING INCOME $102,542 $208,572

FINANCIAL ANALYSIS

1036 NORTH Genesee Avenue// WEST HOLLYWOOD, CA 900046

JEFFREY BENSONFirst Vice President Investments

Director, National Multi Housing GroupDirect | 310.909.5420

[email protected]: CA 01327285

RICHARD RINGERSenior Managing Director Investments

Senior Director, National Housing GroupDirect | 310-909-5428

[email protected]: CA 01494512

1036 north genesee avenue west hollywood, ca 90046 · 2018-12-11 · 4 executive summary the...

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