6 unit apartment investment opportunity · 2019-06-22 · termite & pest control services...
TRANSCRIPT
6 UNITAPARTMENTINVESTMENTOPPORTUNITY
TURNKEY & REMODELED WITHNO RENT CONTROL
423 East Elmwood Avenue Burbank Cal ifornia 91501
TABLE of ContentsKARL MARKARIAN
Real Estate AdvisorCalBRE# 01932970
ResidentialCommercialInvestments
Douglas Elliman
9470 Wilshire BlvdSuite 120Beverly Hills CA 90212
D : (818) 433 0548O : (424) 355 8661
Exacutive Summary 04
Property Highlights 06
Financial Analysis 08
Area Overview 10
Major Current Projects 14
Karl Markarian of Douglas Elliman , is pleased to present
an opportunity to purchase a turnkey & remodeled “No Rent Control” 6 Unit apartment building at 423 E Elmwood
– Burbank CA 91501.
The building is located in the highly desired N of Glenoaks
area of Burbank. Front building consists of two 2-bedroom
/ 1-bathroom units with large living rooms and private wrap
around patios. The second building (3 upper units) has
three 2-bedroom / 1-bathroom units and one 1-bedroom
/ 1-bathroom unit.
All units are equipped with newly installed GE stoves,
refrigerator, washing machine and microwave.
Located just one block to Glenoaks Blvd and within walking
distance to shopping, restaurants, nearby bus line and to
exciting Downtown Burbank with many great upcoming
projects.
Delivered with six stabilized market rent units.
PA G E 4 423 E Elmwood - Burbank CA
PA G E 5
PROPERTYSummary
ADDRESS:
PRICE PER UNIT:
PRICE PER SQFT:
UNITS:
UNIT MIX:
YEAR BUILT:
APN:
BUILDING SIZE:
LOT AREA:
ZONING:
PARKING:
423 E. Elmwood Ave
Burbank CA 91501
$508,333
$685
6
Five 2x1 & One 1x1
1959
5621-024-004
4,453 Sq. Ft.
8,606 Sq. Ft.
BUR4
11 tandem Parking spaces
LAUNDRY: Common area Coin Operated Laundry
Unit A has private washer/dryer in unit
COMMON: Common area sitting & bbq area
STORAGE: Each Unit is equipped with a private storage room
PA G E 6 423 E Elmwood - Burbank CA
Property
Highlights
• Complete interior & exterior remodelin 2018
• 11 tandem on site parking spots
• Common area sitting & BBQ area
• Private individual indoor storageroom per unit
• Brand New GE 4 pc appliancesequipped and installed in units
• Turnkey Units delivered with 5tenants and Unit A delivered vacant
PROPERTYPhotographs
PA G E 7
PA G E 8 423 E Elmwood - Burbank CA
RENT ROLL AS OF (04/11/2019)
Unit Unit Type Move in Date Rental Rate Security Deposit
Unit A 2 Bd | 1 Bath 7/01/19 -$2,700.00 $2,700.00
Unit B 2 Bd | 1 Bath 2/1/19 $2,600.00 $2,600.00
Unit C 2 Bd | 1 Bath 4/1/19 2,300.00 2,300.00
Unit D 2 Bd | 1 Bath 4/15/19 $2,200.00 $2,200.00
Unit E 2 Bd | 1 Bath 4/1/19 $2,100.00 $2,100.00
Unit F 1 Bd | 1 Bath 3/9/19 $1,900.00 $2,000.00
TOTAL 11 Bed | 6 Bath $13,800.00
Current Annual Gross Income: $165,600
Scheduled Annual Gross Income: $165,600
FINANCIALAnalysis
PA G E 9
PROJECTED ANNUAL
EXPENSESCompany Annual $
City of Burbank /Business Tax $61.20
Utilities $6,286
Annual servicing of Fire Extinguishers $75.00
Gardening Services $1,380.00
Termite & Pest Control Services $453.00
City of Burbank Fire (annual inspection) $51.00
LA County Tax Assessor $38,125.00
Property Insurance $2,276.00
Estimated annual expenses $48,707.00
INCOME & EXPENSES Unit A $2,700
Unit B $2,600
Unit C $2,300
Unit D $2,200
Unit E $2,100
Unit F $1,900
Estimated Monthly Laundry $100
Monthly Rent Income $13,800
Scheduled Annual Income $166,800
Estimated Annual Expenses -$48,707
5% - Vacancy & Repairs Factor -$8,340
Estimated Net Income $109,753.00
PA G E 10 423 E Elmwood - Burbank CA
WHY
BURBANK?There are many compelling reasons to choose Burbank. From strong demographics to a high quality of life and a thriving business community, Burbank offers you an unparalleled competitive advantage.
DemographicsBurbank demographics reflect higher than average incomes, with households that are college educated and ethnically diverse, sharing an upscale urban perspective.
Area
Overview
Sources: https://econdevburbank.com/ | The Nielsen Company, EMSI | HdL, EDD, Costar
107,702 POPULATION $101,253 AVERAGE HOUSEHOLD INCOME 70.76% SOME COLLEGE OR HIGHER 43,552 HOUSEHOLDS 150,000 WORKFORCE POPULATION $80,000 AVERAGE WORKFORCE INCOME 41.7 MEDIAN AGE 200,000 DAYTIME POPULATION 15.9% CITYWIDE OFFICE VACANCY RATE 15.4% A & B OFFICE VACANCY RATE* 16.1% RETAIL VACANCY RATE 22.1% FLEX/INDUSTRIAL VACANCY RATE 4.8% UNEMPLOYMENT $833,000 MEDIAN HOME PRICE
ECONOMIC INDICATORS
AS
OF FO
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QU
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18
PA G E 11
Burbank represents a robust workforce with a daytime population of 150,000 jobs spread through a variety of industries.TOTAL WORKFORCE POPULATION 150,000
KEY
INDUSTRIES
107,702 POPULATION$101,253 AVERAGE HOUSEHOLD INCOME70.76% SOME COLLEGE OR HIGHER43,552 HOUSEHOLDS150,000 WORKFORCE POPULATION$80,000 AVERAGE WORKFORCE INCOME41.7 MEDIAN AGE200,000 DAYTIME POPULATION15.9% CITYWIDE OFFICE VACANCY RATE15.4% A & B OFFICE VACANCY RATE*16.1% RETAIL VACANCY RATE22.1% FLEX/INDUSTRIAL VACANCY RATE4.8% UNEMPLOYMENT$833,000 MEDIAN HOME PRICE
Top 10 Industries
Number Of Jobs
Average Workforce Income
Entertainment 33,429 $120,051
Administrative Support Services 21,690 $40,681
Professional, Scientific, Technical 17,290 $122,323
Education 7,602 $56,557
Food and Beverage 7,124 $23,879
Ambulatory Health Care Services 5,899 $63,545
Management Companies and Enterprises 4,312 $130,864
Personal and Laundry Services 2,771 $30,822
Social Assistance 2,574 $19,340
Merchant Wholesale, Durable Goods 2,309 $78,542
QUALITY OF
LIFEAs an independent city, Burbank offers its own police and fire, school district, transportation, and utilities. The resulting responsiveness, proximity, and accountability provides for an enviable quality of life in Burbank.
SchoolsCommitted to the next generation of talent, the Burbank Unified School District has been honored as “Distinguished” by the State of California and offers an excellent school system with over 15,000 students on 17 campuses. Burbank also boasts 10 private and parochial schools including:
3min 33secBURBANK POLICERESPONSE TIME
WOODBURY UNIVERSITYNEW YORK FILM ACADEMYUNIVERSITY OF LA VERNE
UNIVERSITY OF REDLANDSLYCÉE INTERNATIONAL DE L.A.
4min 22sec BURBANK FIRE
RESPONSE TIME
PA G E 12 423 E Elmwood - Burbank CASources: https://econdevburbank.com/ | The Nielsen Company, EMSI | HdL, EDD, Costar
RESIDENTIAL N E I G H B O R H O O D S
BURBANK’S MEDIAN HOME PRICE EXCEEDS LA COUNTY’S BY 18.57%
$833,000 BURBANK’S MEDIAN HOME PRICE
$715,000 L.A COUNTY’S MEDIAN HOME PRICE
As of Second Quarter 2018
PA G E 13
PA G E 14 423 E Elmwood - Burbank CA
MAJOR CURRENTPROJECTS IN BURBANK
PA G E 15
BURBANK TOWN CENTERRENOVATIONS201 W Magnolia BoulevardEstimated Completion: April 2018Status: Approved
The $65 million renovation of Burbank Town Center will make it the new bustling heart of Downtown Burbank connecting shopping, dining, new residences, and an open-air community plaza with a vibrant lifestyle center and approximately 40,000 sq. ft. of retail tenants
1
TALARIA AT BURBANK 3401 W Olive AvenueEstimated Completion: Summer 2018Status: Under Construction
This 241 unit luxury complex will be the Burbank’s first residential building that is LEED Certified. A state-of-the-art Whole Foods Market is slated to anchor the ground level with 43,000 sq. ft. of retail space.
2
FIRST STREET VILLAGE First Street and Magnolia BoulevardEstimated Completion: 2021Status: Approved
A proposed project at First Street between Magnolia Boulevard and the alley southeast of Palm Avenue that includes:• Three 5-story structures with a total of 261 apartments, 13,765 sq. ft. of retail space, and 662 parking spaces.• The project will offer a fitness center, a swimming pool, meeting room, outdoor courtyards, roof terraces,
and a dog park.
3
Sources: https://econdevburbank.com/
SCREENLAND DRIVEMIXED-USE PROJECT115 North Screenland DriveEstimated Completion: Late 2021Status: Approved
The project proposes a single 13-story building (approximately 170 ft. high), with a total of 40 apartments, approximately 3,730 sq. ft. of retail/restaurant space on the ground floor, and two levels of subterranean parking. All apartment units have two bedrooms, and range in size between 1,262 to 1,430 sq. ft. each.
4
PREMIER ON FIRST 103 East Verdugo AvenueEstimated Completion: To be determined pending project approvalStatus: To be considered by City Council in Winter 2018A mixed-use development project in Downtown Burbank featuring two proposed 14-story towers plus:Phase I: 14-story building with 154 residential units. 7,968 sq. ft. of ground floor retail space. 1,727 sq. ft. of ground floor restaurant space.Phase II: 14-story hotel with 230 rooms and 5,894 sq. ft. of retail/restaurant space. or 159,000 sq. ft. office space and 12,822 sq. ft. of ground floor retail/restaurant space.
5
AC HOTEL 550 North Third StreetStatus: ApprovedExpected Construction Date: Winter 2019
The project proposes a single 6-story hotel with 198 rooms, approximately 3,800 sq. ft. of hotel restaurant space on ground floorThree levels of subterranean parkingProposed amenities include a fitness center, lounge/library area, pool/ spa deck, an outdoor courtyard, and rooftop viewing deck
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Sources: https://econdevburbank.com/ PA G E 16 423 E Elmwood - Burbank CA
PA G E 17
IKEA SITEREDEVELOPMENTStatus: To be considered by Burbank City Council in Spring 2019
The relocation of IKEA to Downtown Burbank Southside opened the opportunity to re-envision San Fernando Boulevard north of the mall.The plans include:A 15-story building with 70 residential units.Three 7-story buildings with 765 residential units and nearly 40,000 sq. ft. of retail/restaurant space, 259 apartments, and a 200-room hotel with 10,000 sq. ft.
7
AVION BURBANK 3001 N Hollywood Way - Adjacent to Hollywood Burbank AirportStatus: To be considered by Burbank City Council in Winter 2018
A new business park located on approximately 61.5 acres that will include:Six, 2-story tall industrial/warehouse buildings totaling more than 1 million sq. ft.Nine, 2-story creative office buildings totaling 142,250 sq.ft.Two, 1- story retail/restaurant buildings of approximately 15,000 sq. ft.A 150-room hotel.
8
BURBANK COMMON 10 West Magnolia Blvd and 5 West Olive AveStatus: To be considered by City Council in Spring 2019
A proposed dining and entertainment venue in Downtown Burbank that would demolish the former Americold, cold storage facility. It would include: a 33,000 SF event space; 19,000 SF of restaurant, café, brewpub, retail and special event space; and 47,000 SF of open space.
9
777 FRONT STREETMIXED-US777 Front St (Zero Site)Status: To be considered by City Council in Winter 2019
A mixed-use project of approximately 542 residential units, a hotel with 317 rooms and 700 sq. ft. of ground floor retail space on a vacant 7-acre site. The residential building would be a 7-8 story podium building with one level of underground parking; hotel will be a 15 story building.
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WARNER BROS. TOUR CENTER 4000 Warner Blvd, Building 147Expected Construction Date: Spring 2018
Warner Bros. is proposing a new 79,800 sq. ft. building that will house space for a new studio tour center and parking for 961 cars above grade and an approximately 25,000 sq. ft. subterranean garage for the parking of 90 electrical tour carts. The new building is located on the studio’s Main Lot on the south side of Warner Avenue between Avon and Lima Streets.
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Sources: https://econdevburbank.com/ PA G E 18 423 E Elmwood - Burbank CA
PA G E 19
PA G E 20 423 E Elmwood - Burbank CA
BURBANK
TRANSPORTATION Airplane ServiceEscape the hustle and bustle with easy access directly into the Los Angeles region via Hollywood Burbank Airport (BUR). The Airport has two easy-to-navigate terminals served by Alaska Airlines, American, Delta, JetBlue, JetSuite, Southwest and United. Daily non-stops include Dallas, Denver, Oakland, Las Vegas, New York, Phoenix, Portland, Sacramento, Salt Lake City, San Francisco, and Seattle.
Rail ServiceThe Pacific Surfliner stops adjacent to the Hollywood Burbank Airport on its route from San Luis Obispo to San Diego.The Metrolink Ventura County line stops at two locations: adjacent to Hollywood Burbank Airport, and in Downtown Burbank. Service continues to Downtown Los Angeles with connections to the L.A. subway system and public transportation. Metrolink Antelope Valley Line also makes a stop in Downtown Burbank.Amtrak Coast Starlight stops adjacent to Hollywood Burbank Airport on its route from Downtown Los Angeles to Seattle.
Bus Service• Burbank offers its own commuter system with Burbank Bus• The city is also served by the Los Angeles County Metropolitan Transportation
Authority with the METRO bus service.
Highway AccessBurbank is served by Interstate 5 (Golden State) and California State Route 134 (Ventura Freeway)
PA G E 21
ADVANTAGES OFDOING BUSINESS IN BURBANK• NO CITY INCOME TAX• NO GROSS SALES RECEIPT TAX• ONE-STOP SHOP• STREAMLINED PERMITTING PROCESS• ONE BURBANK HIGH-SPEED FIBER OPTICS
NETWORK• LEED INCENTIVE PROGRAM• ENERGY SOLUTIONS REBATES• SOLAR POWER REBATES
CITY OF BURBANKBUSINESS INCENTIVES• NO CITY INCOME TAX• NO GROSS SALES RECEIPT TAX• ONE-STOP SHOP, STREAMLINED PERMITTING PROCESS• LEED INCENTIVE PROGRAM• BUSINESS REBATES• EMPLOYEE RECRUITMENT AND HIRING ASSISTANCE• CALIFORNIA COMPETES TAX CREDITS• BUSINESS BUCK’S
KARL MARKARIAN
Real Estate AdvisorCalBRE# 01932970
ResidentialCommercialInvestments
Douglas Elliman
9470 Wilshire BlvdSuite 120Beverly Hills CA 90212
D : (818) 433 0548O : (424) 355 8661