1757-65 coronado avenue · marcus & millichap is pleased to present 1757-1765 coronado avenue,...
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A MARCUS & MILLICHAP INVESTMENT OPPORTUNITY
1757-65 CORONADO AVENUEL O N G B E A C H , C A
O F F E R I N G M E M O R A N D U M
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Non-Endorsements
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
1757-1765 Coronado AvenueLong Beach, CAACT ID ZAB0130079
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
01
03
02
04INVESTMENTOVERVIEW
FINANCIALOVERVIEW
MARKETOVERVIEW
MARKETCOMPARABLES
E X C L U S I V E L Y L I S T E D B Y
880 Apollo Street, Suite 101
El Segundo | CA 90245
424.405.3900
Marcus & Millichap is pleased to present 1757-1765 Coronado Avenue, a 12-unit investment property in Long Beach, California. The prop-
erty is located between Pacific Coast Highway and 17th Street in the Zaferia neighborhood just minutes from Alamitos Bay and the beach.
This area is a solid majority-renter market with low vacancy rates.
1757-1765 Coronado Avenue consists of all 2-bedroom 1-bathroom units. All the units are separately metered for gas and electricity. The
property also offers ample surface parking in the rear of the building.
This offering presents a great opportunity for an investor to acquire an asset with steady cash flow in a strong rental market and capture
potential upside in rents.
Investment Overview
H I G H L I G H T S
All 2 Bedroom 1 Bathroom Units
Ample Surface Parking
A Potential Drastic 60% Increase in NOI
Very Walkable: 87 Walk Score
Right Off PCH
H I G H L I G H T S
F I N A N C I A LA N A LY S I S
S C H E D U L E D P OT E N T I A L
U N I T T Y P E # O F U N I T S AVG S Q F E E T AV E R AG E R E N TAV E R AG E R E N T / S F
M O N T H LY I N C O M E AV E R AG E R E N TAV E R AG E R E N T / S F
M O N T H LY I N C O M E
2 B e d ro o m 1 B a t h ro o m 1 2 6 4 0 $ 1 , 2 3 0 $ 1 . 9 2 $ 1 4 ,7 5 9 $ 1 , 8 2 5 $ 2 . 8 5 $ 2 1 , 9 0 0
To ta l s / We i g h te d Ave ra g e s 1 2 6 4 0 $ 1 , 2 3 0 $ 1 . 9 2 $ 1 4 ,7 5 9 $ 1 , 8 2 5 $ 2 . 8 5 $ 2 1 , 9 0 0
G ro s s A n n u a l i ze d Re n t s $ 1 7 7,1 0 8 $ 2 6 2 , 8 0 0
As of February, 2020Rent Roll Detail
I N C O M E C U R R E N T Y E A R 1 P E R U N I T P E R S F
G ro s s P o t e n t i a l R e n t 2 6 2 , 8 0 0 2 6 2 , 8 0 0 2 1 , 9 0 0 3 4 . 2 1
Lo s s / G a i n t o Le a s e ( 8 5 , 6 9 2 ) 3 2 . 6 % 0 0 0 . 0 0
G ro s s S c h e d u l e d R e n t 1 7 7,1 0 8 2 6 2 , 8 0 0 2 1 , 9 0 0 3 4 . 2 1
P h y s i c a l Va c a n c y ( 5 , 3 1 3 ) 3 . 0 % ( 7, 8 8 4 ) 3 . 0 % (6 5 7 ) ( 1 . 0 3 )
To ta l s Va c a n c y ( $ 5 , 3 1 3) 3 .0 % ( $ 7, 8 8 4) 3 .0 % ( $ 6 5 7 ) ( $ 1 )
E f fe c t i ve G ro s s i n c o m e $ 1 7 1 ,7 9 5 $ 2 5 4 , 9 1 6 $ 2 1 , 24 3 $ 3 3 .1 8
E X P E N S E S C U R R E N T Y E A R 1 P E R U N I T P E R S F
R e a l E s t a t e Ta x e s 3 8 , 2 9 4 3 8 , 2 9 4 3 ,1 9 1 4 . 9 8
I n s u ra n c e 3 , 07 3 3 , 07 3 2 5 6 0 .4 0
U t i l i t i e s 2 ,4 0 0 2 ,4 0 0 2 0 0 0 . 3 1
R e p a i r s & M a i n t e n a n c e 7, 8 0 0 7, 8 0 0 6 5 0 1 . 0 2
M a r k e t i n g & A d v e r t i s i n g 8 8 4 8 8 4 74 0 .1 2
G e n e ra l & A d m i n i s t ra t i v e 1 , 9 6 7 1 ,7 6 7 1 4 7 0 . 2 3
P e s t C o n t ro l 6 0 0 6 0 0 5 0 0 . 0 8
La n d s c a p i n g 7 2 0 7 2 0 6 0 0 . 0 9
O p e ra t i n g R e s e r v e s 2 ,4 0 0 2 ,4 0 0 2 0 0 0 . 3 1
M a n a g e m e n t F e e 8 , 5 9 0 5 . 0 % 1 2 ,74 6 5 . 0 % 1 , 0 6 2 1 . 6 6
To ta l E x p e n s e s $ 6 6 ,7 2 8 $ 70,6 8 4 $ 5 , 8 9 0 $ 9. 2 0
E x p e n s e s a s % of E G I 3 8 . 8 % 2 7.7 %
N e t O p e ra t i n g I n c o m e $ 1 0 5 ,0 67 $ 1 8 4 , 2 3 2 $ 1 5 , 3 5 3 $ 2 3 . 9 8
Notes and assumptions to the above analysis are on the following page.
Operating Statement
10
S U M M A RY
P r i c e $ 2 ,9 9 0,0 0 0
D o w n P a y m e n t $ 1 , 3 6 0 ,4 5 0 4 6 %
N u m b e r o f U n i t s 1 2
P r i c e P e r U n i t $ 24 9 ,1 6 7
P r i c e P e r S q F t $ 3 8 9 . 2 2
R e n t a b l e S q F t 7, 6 8 2
Lo t S i z e 0 . 3 0 A c re s
A p p ro x . Ye a r B u i l t 1 9 5 8
F I N A N C I N G 1 ST LOA N
Lo a n A m o u n t $ 1 , 6 2 9 , 5 5 0
Lo a n Ty p e N e w
I n t e re s t R a t e 3 . 5 0 %
A m o r t i z a t i o n 3 0 Ye a r s
Ye a r D u e 2 0 5 0
R E T U R N S C U R R E N T Y E A R 1
CA P Ra te 3 . 51 % 6.1 6 %
G R M 1 6 . 8 8 1 1 . 3 8
C a s h - o n - C a s h 1 . 2 7 % 7. 0 9 %
D e b t C o v e ra g e R a t i o 1 . 2 0 2 .1 0
Loan is subject to change. Contact your Marcus & Millichap Capital
Corporation Representative
U N I T S U N I T S S Q F T/ U N I T S C H E D U L E D
R E N T S M A R K E T
R E N T S
1 2 2 B e d ro o m 1 B a t h ro o m 6 4 0 $ 1 , 2 3 0 $ 1 , 8 2 5
Pricing Detail
I N C O M E C U R R E N T Y E A R 1
G ro s s S c h e d u l e d Re n t $ 1 7 7,1 0 8 $ 2 6 2 , 8 0 0
Le s s : Va c a n c y/ D e d u c t i o n s 3 . 0 % $ 5 , 3 1 3 3 . 0 % $ 7, 8 8 4
To t a l E f fe c t i v e R e n t a l I n c o m e $ 1 7 1 ,7 9 5 $ 2 5 4 , 9 1 6
O t h e r I n c o m e $ 0 $ 0
E f fe c t i v e G ro s s I n c o m e $ 1 7 1 ,7 9 5 $ 2 5 4 , 9 1 6
Le s s : E x p e n s e s 3 8 . 8 % $ 6 6 ,7 2 8 2 7.7 % $ 7 0 , 6 8 4
N e t O p e ra t i n g I n c o m e $ 1 0 5 ,0 67 $ 1 8 4 , 2 3 2
C a s h F l o w $ 1 0 5 , 0 6 7 $ 1 8 4 , 2 3 2
D e b t S e r v i c e $ 87, 8 0 9 $ 87, 8 0 9
N e t C a s h F l o w A f t e r D e b t S e r v i c e 1 . 2 7 % $ 1 7, 2 5 8 7. 0 9 % $ 9 6 ,4 2 3
P r i n c i p a l R e d u c t i o n $ 3 1 , 3 6 4 $ 3 2 ,4 8 0
To ta l Re t u r n 3 . 5 7 % $ 4 8 ,6 2 2 9.4 8 % $ 1 2 8 , 9 0 3
E X P E N S E S C U R R E N T Y E A R 1
R e a l E s t a t e Ta x e s $ 3 8 , 2 9 4 $ 3 8 , 2 9 4
I n s u ra n c e $ 3 , 07 3 $ 3 , 07 3
U t i l i t i e s $ 2 ,4 0 0 $ 2 ,4 0 0
R e p a i r s & M a i n t e n a n c e $ 7, 8 0 0 $ 7, 8 0 0
M a r k e t i n g & A d v e r t i s i n g $ 8 8 4 $ 8 8 4
G e n e ra l & A d m i n i s t ra t i v e $ 1 , 9 6 7 $ 1 ,7 6 7
P e s t C o n t ro l $ 6 0 0 $ 6 0 0
La n d s c a p i n g $ 7 2 0 $ 7 2 0
O p e ra t i n g R e s e r v e s $ 2 ,4 0 0 $ 2 ,4 0 0
M a n a g e m e n t F e e $ 8 , 5 9 0 $ 1 2 ,74 6
To ta l E x p e n s e s $ 6 6 ,7 2 8 $ 70,6 8 4
E x p e n s e s / U n i t $ 5 , 5 6 1 $ 5 , 8 9 0
E x p e n s e s /S F $ 8 .6 9 $ 9. 2 0
Pricing Detail
12
M A R K E TO V E R V I E W
The South Bay-Long Beach area of southwestern Los Angeles County contains 21 miles of coastline between Long Beach and El Segundo and includes Los Ange-les International Airport, the Port of Los Angeles and the Port of Long Beach. The region boasts a population of approximately 1.3 million and is projected to add roughly 9,700 residents through 2023. High home values allow just half of house-holds to afford to own their home, generating a large rental market.
The area’s economy historically relied on the aerospace industry and defense-relat-ed technologies, including companies such as Boeing, Honeywell Aerospace and Raytheon.
Widespread diversification in recent years has produced a large contingent of pro-fessional and business services firms and corporate headquarters. Significant opera-tions are held by American Honda Motor Co., BP, and Mattel.
A growing population base and public healthcare have supported gains in the edu-cation and healthcare sector thanks to both public and private employers.
2018 POPULATION
2018 HOUSEHOLDS
MEDIAN HH INCOME
0.7% BY 2023
1.9% BY 2023
US MEDIAN: $58,000
1.3 MILLION
487,000
$74,900
LONG BEACH
THE A LINE
LONG BEACH CIVIC CENTER
In Downtown Long Beach, the $520 millionLong Beach Civic Center project calls for thedevelopment of a new library, a new headquartersfor both City Hall and the Port of Long Beach,650 multifamily units, 200 hotel rooms, andan expansion of Lincoln Park. The first phase ofthe project has now been completed.
The SOM-designed project, which spans across 16 acres, is highlighted by dual 11-story buildings that will become the new Long Beach City Hall and headquar-ters for the Port of Long Beach. The concrete frame of both towers are now rising at the west side of the complex.
The reopening of Metro’s A Line took place on November of 2019. Brand new renovations to The A Line (formerly known as the Blue Line) have had huge success in Long Beach local areas and will continue to attract more customers this coming year. The 22-mile line connects riders between downtown Los Angeles and downtown Long Beach, as well as the greater areas of Los Angeles such as Hollywood and Santa Monica.
16
Long BeachQUEEN MARY ISLAND
MIDDLE HARBOR PROJECT
Urban Commons has planned a $250 millionretail and entertainment complex for the 65-acre waterfront surrounding the Queen Mary,calling it Queen Mary Island. The redevelop-mentwill include restaurants, live music, 700,000square feet of retail space, a new 200-room ho-teland 150,000 square feet allocated for a miniamusement park, Urban Adventure.
The Middle Harbor terminal will be 311 acres, with an annual capacity of 3.3 million TEUs (twentyfoot equivalent units) – which alone would rank it as the nation’s fourth-busiest port. A new 4,200-foot-long concrete wharf with three deepwater berths will support 14 of the most modern gantry cranes – accomm An on-dock rail yard is designed to handle 1.1 million TEUs a year, or about 24 trains a week, to minimize roadway traffic impacts. Construc-tion is generating 1,000 temporary jobs a year through 2020, while 14,000 permanent new jobs will be generated in Southern California by the increase in trade.
DowntownLong Beach
The PikeOutlets
Promenade
Port ofLong Beach
Long BeachConvention Center
LOCAL ATTRACTIONSOV E R 5 0 LO C A L AT T R AC T I O N S W I T H I N A 2 - M I L E R A D I U S
C A L I FO R N I A STAT E U N I V E R S I T Y, LO N G B E AC H ( 2 . 3 M I L E S )
VA LO N G B E AC H H E A LT H C A R E SYST E M ( 2 . 6 M I L E S )
LO N G B E AC H C I T Y CO L L E G E PAC I F I C C A M P U S ( 1 . 3 M I L E S )
FO U R M A J O R F R E E WAYS W I T H I N C LO S E P R OX I M I T Y:
Circle Area (0.4 miles)
UFC Gym
Circle Porsche
Circle Audi
Circle Auto Group
Public Storage
Chick-fil-A
CVS
Wells Fargo
Chase Bank
In-N-Out Burger
Kaiser Permanente
Super 8 by Wyndham
Ralphs
Auto Zone
LA Fitness
Staples
T-Mobile
Public Storage
Marshalls
Rite Aid
Raising Cane’s Chicken
Starbucks
Jersey Mike’s Subs
Chipotle Mexican Grill
Carl’s Jr
Krispy Kreme
Vons
Ross
Flame Broiler
and more...
405 Freeway (1.6 miles)
605 Freeway (5.4 miles)
710 Freeway (3.1 miles)
91 Freeway (8.4 miles)
6.0
5.4
4.8
4.2
3.6
3.0
2.4
1.8
1.2
0.6
0.0
18.00
16.20
14.40
12.60
10.80
9.00
7.20
5.40
3.60
1.80
0.00
1757-65 CoronadoAvenue
1757-65 CoronadoAvenue
Average Cap Rate
Average GRM
1057 EuclidAvenue
1057 EuclidAvenue
1721-1725FreemanAvenue
1721-1725FreemanAvenue
1075Obispo Avenue
1075Obispo Avenue
915FreemanAvenue
915FreemanAvenue
1413-1421ObispoAvenue
1413-1421ObispoAvenue
1074 St. LouisAvenue
1074 St. LouisAvenue
1021ProspectAvenue
1021ProspectAvenue
4781 E PacificCoast Highway
Park Towers
4781 E PacificCoast Highway
Avg. 4.31%
Avg. 14.80
AVERAGE CAP RATE
AVERAGE GRM
4.31%
14.80
Sales Comparables
20
Sales Comparables
1757-65 CoronadoAvenue
1757-65 CoronadoAvenue
1057 EuclidAvenue
1057 EuclidAvenue
1721-1725FreemanAvenue
1721-1725FreemanAvenue
1075Obispo Avenue
1075Obispo Avenue
915FreemanAvenue
915FreemanAvenue
1413-1421ObispoAvenue
1413-1421ObispoAvenue
1074 St. LouisAvenue
1074 St. LouisAvenue
1021ProspectAvenue
1021ProspectAvenue
4781 E PacificCoast Highway
Park Towers
Park Towers4781 E PacificCoast Highway
$360,000
$330,000
$300,000
$270,000
$240,000
$210,000
$180,000
$150,000
$120,000
$90,000
$60,000
$30,000
$0
$500.00
$450.00
$400.00
$350.00
$300.00
$250.000
$200.00
$150.00
$100.00
$50.00
$0.00
Average Price Per Unit
Average Price Per Square Foot
Avg. $258,294
Avg. $362.44
AVERAGE PRICE PER UNIT
AVERAGE PRICE PER SF
$258,294
$362.44
1
2
53
4
6
7
8
9
Sales Comparables
1757-65 CORONADO AVENUE 1057 EUCLID AVENUE 1721-1725 FREEMAN AVENUE
City, State Zip Long Beach, CA, 90804
Sales Price $2,990,000
Price Per Unit $249,167
Price Per SF $389.22
CAP Rate 3.51%
GRM 16.88
Year Built 1958
Unit Mix 12 2 Bed/1 Bath
Income $171,795
NOI $105,067
City, State Zip Long Beach, CA, 90804
Sales Price $1,365,000
Price Per Unit $227,500
Price Per SF $325.62
CAP Rate 4.13%
COE 3/15/2019
GRM 14.73
Year Built 1959
Unit Mix 4 1 Bed/1 Bath
2 2 Bed/1 Bath
Income $92,654
NOI $56,420
City, State Zip Long Beach, CA, 90804
Sales Price $3,050,000
Price Per Unit $217,857
Price Per SF $372.04
CAP Rate 4.82%
COE 1/23/2020
GRM 15.75
Year Built 1956
Unit Mix 12 1 Bed/1 Bath
2 2 Bed/1 Bath
1 2
Sales Comparables
1075 OBISPO AVENUE 1413-1421 OBISPO AVENUE 1021 PROSPECT AVENUE
City, State Zip Long Beach, CA, 90804
Sales Price $1,557,500
Price Per Unit $259,583
Price Per SF $386.28
CAP Rate 4.59%
COE 1/15/2019
GRM 16.76
Year Built 1953
Unit Mix 5 1 Bed/1 Bath
1 2 Bed/2 Bath
Income $92,918
NOI $71,486
3 4 5
Sales Comparables
City, State Zip Long Beach, CA, 90804
Sales Price $2,400,000
Price Per Unit $266,667
Price Per SF $314.47
CAP Rate 4.26%
COE 6/24/2019
GRM 14.98
Year Built 1963
Unit Mix 9 2 Bed/1 Bath
2 2 Bed/1 Bath
Income $92,654
NOI $56,420
City, State Zip Long Beach, CA, 90804
Sales Price $1,475,000
Price Per Unit $245,833
Price Per SF $291.73
CAP Rate 5.51%
COE 10/25/2019
GRM 13.35
Year Built 1929
Unit Mix 4 1 Bed/1 Bath
2 2 Bed/1 Bath
Income $110,414
NOI $51,216
24
915 FREEMAN AVENUE 1074 ST LOUIS AVENUE 4781 E PACIFIC COAST HIGHWAY
City, State Zip Long Beach, CA, 90804
Sales Price $1,399,000
Price Per Unit $233,167
Price Per SF $399.49
CAP Rate 4.88%
GRM 13.84
Year Built 1949
Unit Mix 5 1 Bed/1 Bath
1 2 Bed/1 Bath
City, State Zip Long Beach, CA, 90804
Sales Price $2,100,000
Price Per Unit $262,500
Price Per SF $360.33
CAP Rate 4.40%
COE 9/14/2019
GRM 14.40
Year Built 1962
Unit Mix 8 Studio Bath
City, State Zip Long Beach, CA, 90804
Sales Price $1,340,000
Price Per Unit $268,000
Price Per SF $451.03
CAP Rate 4.11%
COE 6/20/2019
GRM 14.59
Year Built 1954
Unit Mix 6 1 Bed/1 Bath
1 3 Bed/1 Bath
7 8
Sales Comparables6
1741-1761 PARK AVENUE
9
Sales Comparables
City, State Zip Long Beach, CA, 90815
Sales Price $21,512,500
Price Per Unit $352,664
Price Per SF $334.21
CAP Rate 3.10%
COE 7/25/2019
Year Built 1965
Unit Mix 25 1 Bed/1 Bath
36 2 Bed/1 Bath
26
1
2
3 4
5
Rent Comparables
Rent Comparables
1757-65 CORONADO AVENUE, LONG BEACH, CA
1061 CERRITOS AVENUE, LONG BEACH, CA
3249 E 15TH STREET, LONG BEACH, CA
UNIT TYPE UNITS SF RENT RENT/SF
2 Bedroom 1 Bathroom 12 640 $1,230 $1.92
Total/Avg. 12 640 $1,230 $1.92
UNIT TYPE UNITS SF RENT RENT/SF
2 Bedroom 1 Bathroom 4 668 $1,800 $2.69
Total/Avg. 4 668 $1,800 $2.69
UNIT TYPE UNITS SF RENT RENT/SF
2 Bedroom 2 Bathroom 8 721 $1,895 $2.63
Total/Avg. 8 721 $1,895 $2.63
1
2
28
Rent Comparables
1740 REDONDO AVENUE, LONG BEACH, CA
1741-1761 PARK AVENUE, LONG BEACH, CA
1393 NEWPORT AVENUE, LONG BEACH, CA
UNIT TYPE UNITS SF RENT RENT/SF
1 Bedroom 1 Bathroom 22 650 $1,750 $2.69
Total/Avg. 22 650 $1,750 $2.69
UNIT TYPE UNITS SF RENT RENT/SF
1 Bedroom 1 Bathroom 25 657 $1,460 $2.22
2 Bedroom 1 Bathroom 36 965 $2,333 $2.42
Total/Avg. 4 839 $1,975 $2.35
UNIT TYPE UNITS SF RENT RENT/SF
2 Bedroom 2 Bathroom 8 900 $1,995 $2.22
Total/Avg. 8 900 $1,995 $2.22
4
3
5
880 Apollo Street, Suite 101
El Segundo | CA 90245
424.405.3900
E X C L U S I V E L Y L I S T E D B Y