1226 havenhurst drive, west hollywood, ca 90046

13-Units Multifamily Investment Opportunity in West Hollywood

1226 Havenhurst Drive, West Hollywood, CA 90046

Exclusive Listing Agent:

RICH JOHNSMultifamily Investment [email protected]

CALBRE LIC#01432215

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to ac-curacy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent profession-als. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transactionAll data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property com-plies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Commercial in compliance with all applicable fair housing and equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

CONFIDENTIALITY AGREEMENT

CONTENTS

04162327

PROPERTY DESCRIPTION

FINANCIAL SUMMARY

MARKET COMPARABLES

MARKET OVERVIEW

P r o p e r t yDescr ipt ion

KW Commercial, as the exclusive listing agents are pleased to present an unparalleled opportunity to acquire 1226 North Havenhurst Drive, a 13-unit multifamily investment opportunity located in the highly supply-constrained West Hollywood submarket of Los Angeles. This rare offering in both location and architectural significance allows the astute investor both capital preservation certainty plus a clear path for long term wealth appreciation.

This rare Spanish Colonial Revival apartment community, built in 1927, features a very large square footage with 13,798 SF of improvements, situated on a 15,174 SF parcel. The unit composition features Thirteen (13) Large One Bedroom – One Bathroom apartment homes of varying sizes and finishes. The property’s original charm and taste matches the sophisticated tastes of the area’s demographics.

The offering is situated in one of the trendiest locations in Los Angeles, just north of Santa Monica Boulevard and one block west of Crescent Heights Blvd. This prime location offers easy access to the rich retail and restaurant environments just one block away on Santa Monica Blvd. with a tremendous amount of dining, shopping, and entertainment destinations along with being just a short commute to major employment centers such as Century City, Beverly Hills, Hollywood and Downtown Los Angeles making it one of the strongest multifamily investment areas in the region.

1226 North Havenhurst Drive offers residents excellent proximity to some of Los Angeles’ finest amenities such as The Pacific Design Center, Melrose Avenue, the Sunset Strip, The Grove, LA County Museum of Art (LACMA) and more. Nearby grocers include Trader Joe’s, Whole Foods Market and Bristol Farms. Favored nearby dining options include Laurel Hardware, The Hudson, Surly Goat, Baby Blues BBQ, Bar Lubitsch, Salt’s Cure, and others.

1226 North Havenhurst Drive presents an unequaled investment opportunity in an “A” location with upside potential. Due to the property’s premier location, stylish architecture and advantageous unit mix, 1226 North Havenhurst Drive offers a unique opportunity to any investor looking to acquire a stunning historically rich asset in the heart of West Hollywood.

OFFERINGTHE

THE OPPORTUNITY: 1226 North Havenhurst Drive, built in 1927 in the Spanish Colonial Revival style, is a 13-unit investment opportunity located in West Hollywood. This rare offering in both location and architectural significance allows the astute investor both capital preservation certainty plus a clear path for long term wealth appreciation.

CAPITAL APPRECIATION: This pride of ownership asset features healthy current income metrics along with measurable rental upside upon unit attrition, thus providing excellent investor returns along with long term wealth preservation and appreciation.

WELL LOCATED: West Hollywood know as “The Creative City” features nearly half of the population as adults age 25 to 44, which arguably is the most desirable renter demographic possible. Endless dining and shopping options are within walking distance and within minutes, a short drive puts you in Beverly Hills to the west and Hollywood central to the east.

GREAT WALKABILITY: 1226 Havenhurst Drive features a Walk Score of 94 and known as a “Walker’s Paradise”.

INVESTMENT

HIGHLIGHTS

STRONG EMPLOYMENT: West Hollywood offers a diverse set of employers within one of LA’s strongest employment communities. Notable employers include the Oprah Winfrey Network, the Standard Hotel, CityGrid Media, 10AK and Whole Foods Market.

LACK OF HOUSING AFFORDABILITY: There is a significant affordability gap to home ownership in the West Hollywood submarket. The median home value in West Hollywood is $1,400,000 and averages a per square foot price of $816 according to Realtor.com. West Hollywood home values have risen 5.8% over the past year and are predicted to rise 4.9% within the next year*.

NEW COMMERCIAL DEVELOPMENTS: In the face of extremely tight vacancies and aggressive rent growth, developers have responded by building high-end units in recent years. Around 8% of apartment communities in the submarket has been built in the past 10 years, which is one of the highest rates in LA. Smaller units dominate the submarket, as studios and one-bedrooms make up over 70% of WeHo inventory with an average rent / unit of $2,436.

*source Zillow 9/19/2018

TRANSIT ORIENTED:1226 Havenhurst Drive is located approx. 500 feet from Santa Monica Blvd. to the south and less than 1/2 a mile from Sunset Blvd. to the north offering numerous transit line opportunities nearby.

1226 Havenhurst Drive West Hollywood

CA 90046

Sunset Blvd .

Santa Monica Blvd .

Crescent Heights Blvd .

Norton Avenue

1226 Havenhurst Drive West Hollywood,CA 90046 Fountain Avenue

Havenhurst Drive

1226 Havenhurst Drive West Hollywood,CA 90046

Santa Monica Blvd .

Crescent Heights Blvd .

Exterior

Interior

Plat Map1226 Havenhurst Drive , West Hollywood, CA 90046

M a r k e tO v e r v i e w

City of West HollywoodWith a walk score of 94, the property is in walking distance of popular destinations such as The Hudson, Connie & Ted’s, Trader Joe’s, 8000 Sunset, and countless local amenities along Santa Monica Boulevard, Sunset Boulevard, and La Cienega Boulevard.

West Hollywood (“WeHo”) is located in the eastern portion of the West Los Angeles area. The city is bounded by the community of Hollywood to the north, east, and south; and the city of Beverly Hills to the west.

Today, West Hollywood is a top travel destination among the entertainment industry and LGBT global community. West Hollywood’s stylish hotels attract the well-traveled with their dedication to providing premium service and personalized experiences. The scene is densely packed into 1.9 walkable square miles, including a vast culinary landscape, the Sunset Strip’s notorious nightlife, Pacific Design Center (PDC) and designer flag-ships lining The West Hollywood Design District, celebrity hot spots, global annual events, premier spas and fitness, entertainment and much more.

Accessibil ityBest Part of West Hollywood’s appeal is its connectivity with other desirable neighborhoods.Because of its location amongst the city highway system, it’s easy to get from West Hollywood to other parts of the city quickly and conveniently. Residents in search of apartments for rent or houses for rent can also use the LA Transit system to get around the neighborhood or the greater metro area. The neighborhood is also very pedestrian friendly.

SURROUNDING AMENETIES

1 The Hudson2 Connie and Ted’s3 Omi Sushi4 Traktir Restaurant5 Yogurtland6 Flowering Tree7 The Griddle Cafe8 The Surly Goat9 The Black Bicycle Cafe

1 Plummer Park2 Pointsettia Playground3 Rosewood Park4 Kings Road Park

1 Employees Only2 Gold Coast Bar3 Fubar4 The Surly Goat5 Winston’s Bar6 Bar Lubitsch7 The Body Shop8 Voyeur9 The Laugh Factory

R E S TAU R A N T S & M A R K E T S R E C R E AT I O NN I G H T L I F E

1226HAVENHURST

DRIVE

11

23

4

546

523 6

2

3

1

4

10 Cafe If11 Joey’s Cafe12 Whole Foods13 The Indian Kitchen14 Odessa Groceries15 Gelson’s Market16 Trader Joe’s17 Bristol Farms18 Marco’s Trattoria

7

8

9

10

15

1617

18

11 121314

7

8

9

Connie and Ted’s

The Hudson

Traktir Restaurant

Omi Sushi

The Indian Kitchen

Yogurtland

Marco’s Trattoria

Barbette

Irv’s Burgers

Flowering Tree

Delilah

Izakaya

Los Tacos

Pink Dot

Los Tacos

Gold Coast Bar

Employees Only

Fubar

Voyeur

The Surly Goat

The Body Shop

North

Winston’s Bar

Scene Lounge

THE HUDSON OMI SUSHI

CONNIE AND TED’S

Restaurants and Bars Groceries and MarketsGelson’s Market

Whole Foods Market

Trader Joe’s

Odessa Grocery

Bristol Farms Hollywood

A WALKABLETR A NSIT - OR I E NTE D COM M U N IT Y

The subject property are also within walking distance of a variety of highly regarded dining experiences, cafés,

boutique shopping, entertainment, and nightlife options including notable popular destinations such as The

Hudson, Connie and Ted’s, and Omi Sushi in addition to the local everyday necessities located along Sunset

Boulevard, Santa Monica Blvd, and North Fairfax Avenue.

1226 Havenhurst Drive has a staggering 94 Walk Score and 62 Transit Score, a rare combination for apartment buildings in Southern California.

WALK SCORE“WALKER’S PARADISE”

92 62WALK SCORE“GOOD TRANSIT”

Daily errands do not require a car.

Many nearby public transportation options.

Entertainment & Shopping

The Laugh Factory

Coast Playhouse

Studs Theatre

DGA Theater Complex

Lexander

The Ruby LA

Lance Lee Davis

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 residenc-es, a rooftop pool and restaurants.WEST HOLLYWOOD EDITION150-room Ian Schrager hotel, includinghigh-end condos and lush landscaping.

ROBERTSON LANERobertson Lane plans to create a new pedestrian pathway connecting the WestHollywood 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.

SUNSET BOULEVARD DEVELOPMENT

WEST HOLLYWOOD PARKDEVELOPMENT

New Developments

1226 Havenhurst DriveWest Hollywood, CA 90046

LA BREA BOULEVARD

DEVELOPMENTS

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 apart-ments 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.

F i n a n c i a lS u m m a r y

FINANCIAL SUMMARY

New Property Taxes $73,977Natural Gas $1,644Water & Sanitation $3,779Property Insurance $5,519Trash Collection $1,879Repairs & Maintenance $4,507Pest Control $456Landscaping $3,600Cleaning $2,160Fees, Permits & Registration $1,872Reserves & Replacements $6,268Total Estimated Expenses -$105,661

ESTIMATED ANNUALIZED EXPENSES

Offering Price $5,990,000Down Payment 100% $5,990,000Current CAP 3.4%Market CAP 4.8%Current GRM 19.1Market GRM 14.8Cost Per SF $434Cost Per Unit $460,769

Cash on Cash Return 3.4%Expenses Per Unit $8,128Expenses Per Sq Ft $7.66

1226 North Havenhurst DriveWest Hollywood, CA 90046

Units 13Year Built 1927Lot Sq Ft 15,174Bldg Gross Sq Ft 13,798Onsite Parking 13 Vehicles

BUILDING DATA

FINANCIAL INDICATORS# of Units Unit Type Avg. Rent Total Avg. Rent Income

13 One Bedroom - One Bathroom $1,957.04 $25,441.58 $2,521.54 $32,780

Rental Income $25,441.58 $32,780Laundry Income $95 $95

Storage (3 spaces) Income $580 $750Total Monthly Income $26,116.58 $33,625

Total Annual Income $313,398.96 $403,500

Scheduled Gross Income $313,399 $403,500Less Vacancy 2.0% ($6,268) 2.0% ($8,070)Gross Operating Income $307,131 $395,430Less Expenses 34% ($105,661) 26% ($105,661)Net Operating Income $201,470 $289,769

CURRENT MARKET

SOURCE OF INCOME

EST. ANNUALIZED OPERATING DATA

CURRENT RENTS MARKET RENTS

Notations:

1) Repairs & Maintenance: Underwritten at actual 2017 expenses.

2) Contract Services:

a) Cleaning expense underwritten at actual 2017 monthly fee of $180/mo.

b) Pest Control expense underwritten at actual 2017 expenses.

c) Landscaping expense underwritten at actual 2017 monthly fee of $300/mo.

3) Utilities: Based upon actual figures from annual 2017 expenses.

4) Real Estate Taxes: Taxes have been underwritten based on a proforma tax rate of 1.235%.

5) Property Insurance: Underwritten at $0.40 per SF of building based on market rates.

6) Reserves & Replacements : Underwritten at 2% of Scheduled Gross Income.

1226 Havenhurst Drive, West Hollywood, CA 90046

RENT ROLL

Unit # Status Unit Type Notations1 Occupied 1 Bedroom - 1 Bathroom Extra Large Square Footage $2,363.00 $2,695.002 Occupied 1 Bedroom - 1 Bathroom $1,067.41 $2,400.003 Occupied 1 Bedroom - 1 Bathroom Private Garden / Patio $2,560.00 $2,695.004 Occupied 1 Bedroom - 1 Bathroom $1,722.28 $2,400.005 Occupied 1 Bedroom - 1 Bathroom Private Garden / Patio $2,540.00 $2,695.006 Occupied 1 Bedroom - 1 Bathroom $2,244.50 $2,400.007 Occupied 1 Bedroom - 1 Bathroom Extra Large-Upper Unit $1,989.48 $2,750.008 Occupied 1 Bedroom - 1 Bathroom Private Balcony $2,601.00 $2,750.009 Occupied 1 Bedroom - 1 Bathroom Private Balcony $1,810.58 $2,595.0010 Occupied 1 Bedroom - 1 Bathroom Private Balcony $1,245.20 $2,550.0011 Occupied 1 Bedroom - 1 Bathroom $2,401.00 $2,450.0012 Occupied 1 Bedroom - 1 Bathroom $2,340.00 $2,450.0013 Occupied 1 Bedroom - 1 Bathroom $557.13 $1,950.00

0 $25,441.58 $32,780

Market RentCurrent Rent

1226 Havenhurst Drive, West Hollywood, CA 900461226 Havenhurst Drive, West Hollywood, CA 90046

Assessor’s Parcel Number Buildings

Year Built Land Use

Zoning Stories

SITE DESCRIPTIONUnits

Gross Square Footage Lot Size Square Footage

Parking

UTILITIESWaterSewer

ElectricGas

Property Details

1226 Havenhurst Drive • West Hollywood • CA 90046 Construction

Foundation Framing Exterior

Roof

MECHANICALWater Heaters

LaundryHVAC

5554-009-018One1927ApartmentsWDR4*Two

1313,79815,17413

Master MeteredMaster MeteredSeparately MeteredSeparately Metered

M a r k e tC o m p a r a b l e s

ConcreteWood FrameStucco Pitched/ Flat

1 Central – less than 5 years old, + 1 Individual for Unit #131 Common Area Facility (1 washer/1 dryer)9- Forced Air Heaters (8 units are less than 3 years old)4 -Gravity Furnace

M a r k e tC o m p a r a b l e s

1226 Havenhurst Drive

COMPARABLESRENT

1)

2)

3)

4)

5)

6)

7)

8)

1216 North La Cienega Boulevard

724 North West Knoll Drive

1201 North Crescent Heights

1360 North Crescent Heights Blvd.

1430 North Harper Avenue

1233 North Sweetzer Avenue

1440 North Hayworth Avenue

1237 North Orange Grove Avenue

COMPARABLESRENT

Property UnitsYearBuilt Owner / Manager


13

14

6

40

19

38

20

14

8

1927

1928

1923

1931

1929

1991

1928

1933

1926

Rent SF Rent/SF

1216 North La Cienega BoulevardWest Hollywood, CA 90069

724 North West Knoll DriveWest Hollywood, CA 90069

1201 North Crescent HeightsWest Hollywood, CA 90046

1360 North Crescent Heights Blvd.West Hollywood, CA 90046

1430 North Harper Avenue West Hollywood, CA 90046

$1,994.42

$3,595

$2,600

$2,600

$4,250

$2,795

$3,295

$3,850

$2,600

-

-

690

690

850

850

850

1000

-

-

-

$3.76

$3.76

$5.00

$3.23

$3.87

$3.85

-

Private Owner Owner Managed

AVERAGE:


HIGH:

LOW:

$3,198.12

$3,850

$2,600

821

1,000

690

1233 North Sweetzer AvenueWest Hollywood, CA 90069

ONE BEDROOM

$3.91

$5.00

$3.76

1440 North Hayworth AvenueWest Hollywood, CA 90046

1237 North Orange Grove Avenue West Hollywood, CA 90046








1

2

3

4

5

6

7

8

1226 Havenhurst Drive

COMPARABLESSALE

1)

2)

3)

4)

5)

6)

1132 North Formosa Avenue

8225 Fountain Avenue

866 Hilldale Avenue

526 North Orlando Avenue

925 North San Vicente Blvd

8755 Shoreham Drive

PROPERTY BUILT UNITS BLDG.SF PRICE CAP GRM $/UNIT $/SF CLOSED STUDIO 1BDR 2BDR

1132 North Formosa AvenueLos Angeles, CA 90046

8225 Fountain AvenueWest Hollywood, CA 90046

866 Hilldale AvenueWest Hollywood, CA 90069

526 North Orlando AvenueLos Angeles, CA 90048

1957

1926

1957

1964

1963

1973

13

9

8

8

19

9

10

13,798

6,325

9,330

7,782

23,326

11,718

20,623

$5,990,000

$4,300,000

$6,000,000

$4,025,000

$9,400,000

$4,195,000

$8,900,000

3.4%

4.50%

-

4.18%

3.75%

-

3.31%

19.1

16.25

-

-

16.77

-

$460,769

$477,778

$857,143

$503,125

$494,737

$466,111

$890,000

$434

$679.84

$643.08

$517.22

$402.98

$358

$431.56

TBD

4/11/2018

7/7/2018

10/12/2017

12/5/2017

9/1/2018

11/30/2017

13(1+1)

6(1+1)

4(1+1)

4(1+1)

7(1+1)

1(1+1)

1(0+1)

1(0+1)

1

2

3

4

5

6

1927

COMPARABLESSALE


925 North San Vicente BlvdWest Hollywood, CA 90069

8755 Shoreham DriveWest Hollywood, CA 90069

2(2+1)

1(2+2)

4(2+1)

9(2+1)

9(2+2)

9(2+2)

3(3+3)

2(3+2)

Exclusive Listing Agent:RICH JOHNSMultifamily Investment [email protected]

CALBRE LIC#01432215

1226 havenhurst drive, west hollywood, ca 90046

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