4178 buckingham road, los angeles, ca 90008...financial summary financial summary 4178 buckingham...

4178 Buckingham Road, Los Angeles, CA 9000818-Unit Multifamily Investment Opportunity in Baldwin Village

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CONTENTS

Exclusively Listed By:

RICH JOHNSMultifamily Investment [email protected]

CALBRE LIC#01432215

04081217

PROPERTY DESCRIPTION

MARKET COMPARABLES

MARKET OVERVIEW

4178 BUCKINGHAM ROAD, LOS ANGELES CA 90008

NICK ASTRUPGAARDMultifamily [email protected]

CALBRE LIC #01893466

FINANCIAL SUMMARY

P r o p e r t yD e s c r i p t i o n

KW Commercial is pleased to present for sale, 4178 Buckingham Road, an 18-unit, value-add, garden style apartment community located in Baldwin Village (90008) on an exceptionally large 28,209 SF corner parcel of land.

Built in 1948 and including 18,026 SF of improvements, 4178 Buckingham Road features an exceptional unit composition benefitting an ease of management and rental of units with Ten (10) One Bedroom | One Bath and Eight (8) Two Bedroom | One Bath apartment homes. All apartments include large living spaces, formal dining rooms, metal casement windows with most featuring original hardwood flooring and dishwashers. Select second floor units have city views.

All units are separately metered for gas and electric utilities and feature individual water heaters. Eighteen individual garages provide for 18 vehicle parking spaces.

The property displays excellent curb appeal, gated entries, mature landscaping, some city lights views on an enormous corner parcel on the quiet intersection of Buckingham Road and San Tomas Drive.

Building systems upgrades include new electrical service meters / panels in 2015 and earthquake gas shut-off valves in 2016. The property is NOT on the City of Los Angeles’ list of buildings requiring soft-story retrofit.

Proximity to employment, lifestyle, and retail centers in the heart of Los Angeles and within immediate proximity to the offering make these apartment units extremely desirable to the area’s renter demographics.

The property’s proximity to employers and cultural venues in Culver City (4 miles), Fox Hills Mall (5.4 miles) and the much-anticipated Inglewood Sports & Entertainment Complex (5.3 miles) make this location an excellent draw for future residents.

Nearby family cultural highlights include the a) Baldwin Hills scenic overlook and hiking trail with views of the Pacific Ocean is to the west and Downtown Los Angeles to the east and the b) Kenneth Hahn State Regional Park - recreation area and preservation of native habitats.

The property offers investors a unique and rare balance between strong current income and meaningful rental upside for future vacant apartments.

OFFERINGTHE

THE OPPORTUNITY: 4178 Buckingham Road, an 18-unit garden style apartment community located in Baldwin Village (90008) on a rarel 28,209 SF corner parcel of land.

RARE OFFERING: 4178 Buckingham Road is being offered for sale for the first time in nearly 50 years.

VALUE-ADD & WEALTH PRESERVATION: The current income, although stable, is below the area’s market metrics. Market rents can be achieved as the units turn naturally over time.

STRONG EMPLOYMENT: The property is in the heart of Los Angeles and within minutes of major entertainment and employment opportunities in Culver City, LA World Airport, DTLA and Inglewood.

LACK OF HOUSING AFFORDABILITY: There is a significant affordability gap to home ownership in the 90008 zip code as the median home price in the direct area is approximately $1,035,000 and a typical monthly mortgage payment is considerably more than the average renovated rents at 4178 Buckingham Road.

NO SEISMIC RETROFIT REQUIRED: 4178 Buckingham Road is not on the list of buildings that require a seismic retrofit.

LOCATED NEAR NEW COMMERCIAL DEVELOPMENTS: Los Angeles World Airports (LAWA) is in the midst of a $14 billion Capital Improvement Program at Los Angeles International Airport (LAX), projected to last through 2023. The LAX modernization program is considered the largest public works program in the history of the City of Los Angeles. Inglewood’s new sports and entertainment complex currently under construction is expected to cost nearly $5 billion dollars and create over 22,000 construction jobs to the immediate area over the next seven years, The Los Angeles Times reports. The stadium and ancillary developments are also expected to create 12,000 full- and part-time jobs annually.

INVESTMENT

HIGHLIGHTS4178

Buckingham Rd.

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

SANTA MONICA

4178BUCKINGHAM ROAD

LA

BALDWIN PARK BALDWIN VILLAGE

MARINA DEL REY CULVER CITY

VENICE BEACH DOWNTOWN LA

WEST

LOS ANGELES STADIUM AND ENTERTAINMENT DISTRICT AT HOLLYWOOD PARK

The new stadium in Inglewood, California is set to open summer 2020, and is the future home of the Los Angeles Chargers and the Los Angeles Rams. It is locat-ed at the former site of the Hollywood Park Racetrack, approximately 3 miles from LAX. SoFi Stadium is the heart of Hollywood Park, a 298-acre world-class sports and entertainment destination. The stadium will hold year-round sports and entertainment events, including being the home of Super Bowl LVI in 2022, the College Football National Championship game in 2023, and the Opening and Closing Ceremonies of the 2028 Olympic Games.

Next to the stadium is the 2.5-acre American Airlines Plaza and a 6,000-seat performance venue. The initial phase of Hollywood Park is planned to have more than 1.5 million square feet of retail and office space, 2,500 residences, a hotel and more than 20 acres of parks.

PLANS FOR THE DISTRICT INCLUDE:• 70,000 seat open air stadium, expandable up to 100,000 seats• 6,000-seat performing arts venue• 780,000 square feet of office space• 890,000 square feet of retail space• 300 hotel rooms

• 2,500 modern residences• Approximately 20+ acres of public parks, open space, pedestrian

walkways and bicycle paths• Family and fine dining• State-of-the-art event, conference and meeting space

RETAIL AMENITIESAbout 5 miles from the new HHLA

The made-over Howard Hughes Promenade is mixed-use of entertainment, retail and dining destination located the heart of the city.

Conveniently located off the 405 freeway, the brand new space will be a haven for foodies, movie lovers, families, shoppers, tourists, and adventure seekers. The new center has exciting brands, restaurants and bars, world-class cine-mas, and modern entertainment experiences all set within one amazing, walkable location.

NEW DEVELOPMENTLocated just 2 blocks away, this new housing de-velopment is in the pre-construction phase and will feature 130 housing units within walking distance of the Crenshaw/Martin Luther King Jr. Station on LA County Metro’s new Crenshaw/LAX light rail line.

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

FINANCIAL SUMMARY 4178 Buckingham Rd, Los Angeles, CA 90008

BUILDING DATAUnits 18

Year Built 1948

Lot Sq Ft 28,209

Bldg Gross Sq Ft 18,026

Parking Spaces 18

ESTIMATED ANNUALIZED EXPENSESNew Property Taxes $46,433

Utilities (DWP & Gas) $12,167

Property Insurance $7,410

Waste Disposal $5,205

Landscaping $1,800

Repairs & Maintenance $13,500

Rental Registration $972

Pest Control $1,440

3rd Party Property Management $9,808

Resident Manager $6,000

Reserves ($165 / unit per year) $2,970

Total Estimated Expenses $107,705

SOURCE OF INCOME CURRENT RENT MARKET RENT Post Renovation

# of Units Unit Type Avg. SF Avg. Rent / SF Avg. Rent Total Avg. Rent / SF Avg. Rent Income

8 Two Bedroom | One Bath 1,150 $1.24 $1,426.78 $11,414.24 $1.83 $2,100 $16,800

10 One Bedroom | One Bath 850 $1.40 $1,193.82 $11,938.19 $1.94 $1,650 $16,500

Total Monthly Income $23,352 $33,300

Total Annual Income $280,229 $399,600

EST. ANNUALIZED OPERATING DATA CURRENT MARKETScheduled Gross Income $280,229 $399,600

Less Vacancy 2.0% ($5,605) 2.0% ($7,992)

Gross Operating Income $274,625 $391,608

Less Expenses -39% ($107,705) -27% ($107,705)

Net Operating Income $166,920 $283,903

NOTATIONS:1) Repairs & Maintenance: Repairs and Maintenance is underwritten as a pro forma expense of $750/unit/year post-renovation

2) Contract Service: Expenses are projected for landscaping at $150/mo, pest control at $120/mo based on market rates. Waste disposal actual 2019 expense of $5,205

3) Utilities: The building is separately metered electrical and gas utilities and features separate/individual water heaters.

4) 3rd Party Property Management: Projected at 3.5% of Total Annual Income

5) Real Estate Taxes: Taxes have been underwritten based upon a tax rate of 1.23%

6) Property Insurance: Insurance expense for 2019 - $7,410

7) Resident Manager: Proforma rent of $2,100 / month. Onsite Manager rent credit of $500 / mo. (Current Onsite Mgr receives free rent plus $250/mo salary).

8) Capital Reserves: Capital Reserves have been underwritten at $165 / unit / year

9) Square Footage Figures are approximated

FINANCIAL INDICATORS

Offering Price $3,775,000

Current CAP 4.4%

Market CAP 7.5%

Current GRM 13.5

Market GRM 9.4

Cost Per Unit $209,722

Price per SF $209.42

Expense Per Unit $5,984

Expenses Per Sq Ft $5.97

RENT ROLL 4178 Buckingham Rd, Los Angeles, CA 90008

UNIT STATUS UNIT TYPE MOVE-IN DATE

Est. SF Current Rent / SF

Current Rent Market Rent / SF

Market Rent Post Renovation

4015 A Occupied 1 Bed | 1 Bath 7/11/14 850 $1.39 $1,180.20 $1.94 $1,650

4015 B Occupied 2 Bed | 1 Bath 8/15/18 1150 $1.40 $1,615.61 $1.83 $2,100

4015 C Occupied 1 Bed | 1 Bath 2/1/16 850 $1.43 $1,217.27 $1.94 $1,650

4015 D Occupied 2 Bed | 1 Bath 10/1/19 1150 $1.39 $1,600.00 $1.83 $2,100



4178 C Occupied 2 Bed | 1 Bath 11/11/19 1150 $1.39 $1,600.00 $1.83 $2,100


4180 A Occupied 1 Bed | 1 Bath 4/1/07 850 $1.06 $899.00 $1.94 $1,650


4180 C Vacant 1 Bed | 1 Bath N/A 850 $1.94 $1,650.00 $1.94 $1,650


4194 A Occupied 2 Bed | 1 Bath 2/6/02 1150 $0.77 $882.00 $1.83 $2,100

4194 B Occupied 1 Bed | 1 Bath 4/1/07 850 $0.88 $744.62 $1.94 $1,650

4194 C Occupied * 2 Bed | 1 Bath 6/1/06 1150 $1.83 $2,100.00 $1.83 $2,100



4196 B Occupied 1 Bed | 1 Bath 12/5/13 850 $1.11 $941.45 $1.94 $1,650

$1.33 $23,352.43 $1.89 $33,300

* Resident Manager: Proforma rent of $2,100 / month. Onsite Manager rent credit of $500 / mo. (Current Onsite Mgr receives free rent plus $250/mo salary).Square Foootage Figures are approximated

Assessor’s Parcel Number Buildings Year Built Land Use

Zoning Stories

SITE DESCRIPTIONUnits

Gross Square Footage Lot Size Square Footage

Parking

UTILITIESWaterSewer

ElectricGas:

Water Heaters:

Property Details

4178 Buckingham Road • Los Angeles, • CA 90008

ConstructionFoundation

Framing Exterior

Roof

5032-016-0104 1948ApartmentsLAR3Two

1818,026 28,20918 Garages

Master MeteredMaster MeteredSeparately MeteredSeparately MeteredIndividual

ConcreteWood FrameStucco Pitched

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

4178 Buckingham Road

COMPARABLESRENT

1)

2)

3)

4)

5)

6)

7)

8)

9)

4319 Santo Tomas Dr

4149 Don Tomaso Dr

3845 Potomac Ave

3862 Potomac Ave

3939 Roxanne Ave

4020 Stevely Ave

4128 S Victoria Ave

4221 Creed Ave

4207 Sutro Ave

COMPARABLESRENT

1 BEDROOM 2 BEDROOM

Property UnitsYear Built Owner/Manager Rent Rent

4178 Buckingham RoadLos Angeles, CA 90008

18 1948 Private Owner/ Owner Managed

$1,093 $1,709

1) 4319 Santo Tomas DrLos Angeles, CA 90008


$1,750

2) 4149 Don Tomaso Dr Los Angeles, CA 90008


$1,895

3) 3845 Potomac AveLos Angeles, CA 90008


$1,695

4) 3862 Potomac Ave Los Angeles, CA 90008


$1,750

5) 3939 Roxanne AveLos Angeles, CA 90008


$1,650

6) 4020 Stevely Ave Los Angeles, CA 90008


$2,199

7) 4128 S Victoria Ave Los Angeles, CA 90008


$2,200

8) 4221 Creed Ave Los Angeles, CA 90008


$2,600

9) 4207 Sutro Ave Los Angeles, CA 90008


$2,375

AVERAGE: $1,748 $2,465

HIGH: $1,895 $2,950

LOW: $1,650 $2,199

4178 Buckingham Road

COMPARABLESSALE

1)

2)

3)

4)

4064 Abourne Rd

4024 Coco Ave

4125 Palmyra Rd

3905 Stevely Ave

COMPARABLESSALE

PROPERTY YEAR BUILT UNITS BLDG SF PRICE CAP GRM $/UNIT CLOSED NOTES

4178 Buckingham RoadLos Angeles, CA 90008 1948 18 18,026

1 4064 Abourne RdLos Angeles, CA 90008 1948 16 15,406 $3,295,000 4.1% 14.1 $205,937 12/3/2019

2 4024 Coco AveLos Angeles, CA 90008 1956 18 19,579 $4,230,000 2.37% 15.0 $235,000 ACTIVE 4 Months

and 21 Days

3 4125 Palmyra RdLos Angeles, CA 90008 1957 18 15,790 $3,800,000 4.1% 14.77 $211,111 ACTIVE

4 3905 Stevely AveLos Angeles, CA 90008 1957 20 18,770 $4,300,000 4.59% 13.4 $215,000 3/6/2020

41784178BuckinghamBuckingham

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 accuracy 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 sig-nificance 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 professionals. 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 perfor-mance. 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 complies 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 Studio City 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

Exclusively ListedBy:

RICH JOHNSMultifamily Investment [email protected]

CALBRE LIC#01432215

NICK ASTRUPGAARDMultifamily [email protected]

CALBRE LIC #01893466

4178 buckingham road, los angeles, ca 90008...financial summary financial summary 4178 buckingham...

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