732 robinson street los angeles, ca 90026 · expenses are projected for pest control ($50/mo),...
TRANSCRIPT
4-Unit Multifamily Investment Opportunity in Silver Lake
732 Robinson StreetLos Angeles, CA 90026
CONTENTS
Presented By:
RICH JOHNSMULTIFAMILY INVESTMENT [email protected]
CALBRE LIC#01432215
030710
PROPERTY DESCRIPTION
FINANCIAL SUMMARY
MARKET OVERVIEW
732 Robinson Street, Los Angeles, CA 90026
NICK ASTRUPGAARDMULTIFAMILY INVESTMENT ADVISOR323.868.9553
CalBRE Lic. #01893466
OFFERINGTHE KW Commercial is pleased to present a Strategic Market Positioning Analysis for 732 Robinson Street, a charming 1940’s four-plex located in Silver Lake (90026), one of the most dynamic Los Angeles neighborhoods.
Current ownership has created a proven concept through interior unit renovations of two units and the common areas which will help pave the way for future ownership to achieve maximum income metrics. 732 Robinson Street represents an excellent balance between stable current income and value-add upside offering investors a rare opportunity to experience long term wealth preservation and appreciation in an exceptional rental market.
The property offers a functional and appealing unit mix of one (1) 2 bedroom/1 bath and three (3) 1 bedroom/1 baths. Two (2) units have undergone a major gut-level renovation with completely reimagined interiors that include new windows, stylized baths and kitchens with designer finishes, custom cabinetry and energy efficient stainless-steel appliances, designer tiles throughout, new gleaming wood floor installations, new lighting, locks and hardware.
The asset, built in 1949, also features drought resistant landscaping and a new exterior color palette.
Centrally located in Silver Lake, 732 Robinson Street is poised to capitalize on the tremendous momentum in the Hollywood-Silver Lake submarket. Furthermore, the subject property’s transit oriented and highly walkable location offers residents access to a myriad of entertainment venues, cultural destinations, and dining options nearby. Given the property’s location and strong income metrics, 732 Robinson Street is an ideal investment for apartment operators seeking immediate returns along with long term wealth preservation and appreciation.
THE OPPORTUNITY: 732 Robinson Street is an attractive four-plex located in the densely populated and enormously popular rental submarket of Silver Lake, known for excellent rent growth and very low vacancy rates.
VALUE ADD COMPONENT: Two (2) of four units are smartly renovated leaving the astute investor significant rental upside for the remaining 2 units upon unit attrition / updating through an already proven concept.
WELL LOCATED: 732 Robinson Street is located approx. one mile from Sunset Junction in Silver Lake with many entertainment venues available such as Intelligentsia, Mohawk General Store, Cafe Stella and Forage. A short distance west and you’re right by Squirl, Twig & Twine or Cafecito Organico. There are endless dining and shopping options within a short distance and within minutes, a short drive puts you in DTLA, Los Feliz or Hollywood central.
GREAT WALKABILITY: With a Walk Score of 70, 732 Robinson Street is considered Very Walkable and “Most errands can be accomplished on foot.”
STRONG EMPLOYMENT: The Hollywood-Silver Lake submarket is one of the strongest employment centers in the Los Angeles MSA and offers access to a diverse set of employers.
LACK OF HOUSING AFFORDABILITY: There is a significant affordability gap to home ownership in the Hollywood-Silver Lake submarket. As the median home price in the area is $1,184,000, a typical monthly mortgage payment is between 2-3 times more than the average renovated rents at 732 Robinson Street.
NO SEISMIC RETROFIT REQUIRED: 732 Robinson Street is not on the list of buildings that require a soft-story seismic retrofit.
TRANSIT ORIENTED:732 Robinson Street is located +/- 1/2 half mile from Sunset Blvd. and a short distance from the Vermont/Beverly Redline station for an easy commute to Hollywood or Downtown Los Angeles.
INVESTMENT
HIGHLIGHTS
EXCEPTIONAL FINANCING / LOAN OPTIONS: Historically low interest rates and attractive financing options available.
LOCATED NEAR NEW COMMERCIAL DEVELOPMENTS: More than 2.3 million SF of commercial space is currently under development in the Hollywood-Silver Lake submarket representing more than $1.58B in project costs, it is estimated that nearly 6,500 new jobs will be created in Hollywood alone.
Exterior
Interior
SUNSET BLVD.
DOWNTOWN LA
SILVER LAKEThe Center
of OneDistinct Emerging
Neighborhood
ECHO PARK
732ROBINSONSTREET
NO
RTH
HO
OV
ER S
TREE
T
KOREATOWN
NO
RTH
VIR
GIL
AV
ENU
E
SUNSET JUNCTION
THE BEST OFSILVER LAKE
The subject property is located blocks away from the core of three of the most enticing neighborhoods in Los Angeles County- Hollywood, Silver Lake, and Echo Park. Due to its eclectic location and walkability, res-idents enjoy unparalleled access to a wide variety of employment, entertainment, and cultural experienc-es that few other neighborhoods in Los Angeles can match.
As part of its recent restoration, Hollywood continues to set the bar in terms of being a major employment center and highly sought after location for a young-er more hip clientele that is looking for a true urban experience. Moreover, with the merging of old Holly-wood and today’s tech savvy startups, the area is ripe for continued success in enticing a younger renter demographic.
Following this uprising of trendy and eclectic resi-dents is a diverse base of restaurants, bars, nightclubs, and retail shops that bring a wide range of cultural experiences to the area. Within the existing location, residents have the opportunity to walk to nearby restaurants and cafes, take the metro into the heart of Hollywood, or spend the afternoon in an adjacent neighborhood via short commute.
Silver LakeSUNSET JUNCTION....
SQIRL CAFE 50’S
MATCHABAR
A WALKABLETR A NSIT - OR I E NTE D COM M U N IT Y
WALK SCORE“VERY WALKABLE”
70 60WALK SCORE“GOOD TRANSIT”
Most errands can be accomplished on foot
Many nearby public transportation options.
WALK SCORE“SOMEWHAT BIKEABLE”
46Steep hills, minimal bike lanes.
Hot Hot Food
D-La Tostada
Golden Hen
Melody
California Grill Restaurant
Yoshinoya
Garam Restaurant
Restaurants and Bars
California Bowl
India’s Curry Place
India’s Clay Pit
Don Feliz Restaurant
Big Mama’s & Papa’s Pizzeria
Romans Pizza
Cafe 50’s
Groceries and MarketsRemy Market
Sqirl
Virgil Market
Osi Market
Lark Cake Shop
Sea Food Market
Sunset Food Market
FINANCIAL SUMMARY
Price $1,520,000 Down Payment $1,520,000
Down Payment %
Current CAP 4.2%
Market CAP 6.8%
Current GRM 16.10
Market GRM 11.26
Cost Per Unit $380,000
Cash on Cash Return 4.2%
Expenses Per Unit $7,254
Expenses Per Sq Ft $10.03
Units 4
Year Built 1949
Lot Sq Ft 6,616
Bldg Gross Sq Ft 2,892
Parking Spaces 4
BUILDING DATA
FINANCIAL INDICATORS
1
# of Units Unit Type Avg. SF Avg. Rent Total Avg. Rent Income1 2 Bed / 2 Bath $3,300.00 $3,300.00 $3,300.00 $3,300.00
3 1 Bed / 1 Bath $1,522.00 $4,566.00 $2,650 $7,950
Total Rental Income $7,866.00 $11,250
Storage income Estimate
Total Monthly Income $7,866.00 $11,250
Total Annual Income $94,392.00 $135,000
Scheduled Gross Income $94,392 $135,000
Less Vacancy 2.0% ($1,888) 2.0% ($2,700)
Gross Operating Income $92,504 $132,300
Less Expenses 31.4% ($29,015) 21% ($29,015)
Net Operating Income $63,489 $103,285
MARKET RENT Post Renovation
MARKETCURRENTEST. ANNUALIZED OPERATING DATA
CURRENT RENTSOURCE OF INCOME
1
Notations:Repairs & Maintenance: Repairs and Maintenance underwritten as a pro forma expense of $550 / unit / year based on market rates.Contract Service: Expenses are projected for Pest Control ($50/mo), Landscaping ($110/mo) based on market rates, Trash ($200/mo) based on market rates.Utilities: Estimated at $500 / unit / year based on market rates. Separately metered for Gas & Electrical utilities.Real Estate Taxes: Underwritten and estimated at a tax rate of 1.22%Property Insurance: Estimated insurance expense is based upon $0.50 / SF/ year based on market rates.
1
732 Robinson Street, Los Angeles, CA 90026
UNIT STATUS UNIT TYPE
Unit 1 Occupied 1 Bed / 1 Bath $1,012.00 $2,650Unit 2 Occupied 2 Bed / 2 Bath $3,300.00 $3,300Unit 3 Occupied 1 Bed / 1 Bath $2,650.00 $2,650Unit 4 Occupied 1 Bed / 1 Bath $904.00 $2,650
$7,866.00 $11,250
MARKET RENT Post Renovation
CURRENT RENT
1
RENT ROLL
New Property Taxes $18,544Utilities $2,000
Waste Removal $2,400
Property Insurance $1,735
Rental Registration / SCEP fees $216
Landscaping $1,320
Repairs & Maintenance $2,200
Pest Control $600
Total Estimated Expenses -$29,015
ESTIMATED ANNUALIZED EXPENSES
1
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
732 Robinson Street • Los Angeles, • CA 90026
5401-017-006One1949ApartmentsLARD2Two
42,8926,6164
Master MeteredMaster MeteredSeparately MeteredSeparately Metered
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 signifi-cance 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 in-vestigations 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
Presented By:RICH JOHNSMULTIFAMILY INVESTMENT [email protected]
CALBRE LIC#01432215
NICK ASTRUPGAARDMULTIFAMILY INVESTMENT ADVISOR323.868.9553
CalBRE Lic. #01893466