8108-8110 pershing drive · 2020. 10. 27. · 8108-8110 pershing drive is a 2-unit apartment...

1O F F E R I N G M E M O R A N D U M

8 1 0 8 - 8 1 1 0 P E R S H I N G D R I V E P L A Y A D E L R E Y , C A

O W N E R U S E R O P P O R T U N I T Y

LISTED BY

CALVIN SHORT SVP & Senior Director

D: (949) 432-4506 M: (310) 567-3525E: [email protected] No. 01927216 (CA)

NABIL AWADA Associate


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04Property Overview

08Area Overview

14Financial Overview


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P R O P E R T Y O V E R V I E W

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OPPORTUNITY

8108-8110 Pershing Drive is a 2-unit apartment building located in the heart of Playa Del Rey, CA. This highly desirable location provides access to local restaurants, coffee shops, cafes, grocery stores and beautiful beaches in Playa Del Rey, Marina Del Rey and El Segundo. This property is centrally located with access to the 90, 105 and 405 freeways, and just a few miles from Los Angeles International Airport and highly affluent South Bay cities of El Segundo, Manhattan Beach and Hermosa Beach. This opportunity provides an investor with flexibility in owning a fully stabilized asset with market rents, as well as the rare opportunity for an owner-occupied investment in the front 2-bedroom, 2-bath that can be available by August 2021.

The subject property is comprised of one three-bedroom, two-bath and one two-bedroom, two-bath that have been beautifully maintained and upgraded over the years. 8108-8110 Pershing Driver offers enclosed garage parking for both units, as well as two surface level spaces, on-site laundry and professionally maintained landscaping. Over the past 18 months various aspects of the property have been replaced and upgraded, to the tune of $75,000 with details on each item, outlined below.

PROPERTY DESCRIPTION• 2-Units, Built 1959

• Unit Mix: 3 Bedroom, 2 Bath | 2 Bedroom, 2 Bath

• Enclosed Parking & On-Site Laundry

• Walk Score of 75

• 5 minutes from Playa Del Rey Beach

• 7 minutes from Los Angeles International Airport (LAX)

• 5 mins from 90 Freeway and 105 & 405 Freeways

• Consistent renter market via proximity to Loyola Marymount University (LMU)

LANDLORD RENOVATIONS

• New hardwood floors in front unit – 2-bedroom, 2 bath

• New central heating and replaced ventilation

• New water heaters and replaced piping

• Complete overhaul and upgrade of electrical panels for both units

• New outdoor railing on front stairs

• New exterior paint for entire property and new interior paint for 2-bedroom, 2 bath

• New drip lines and landscaping in front yard

• New garage doors for both units

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A R E A O V E R V I E W

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Playa Del Rey is a beachside community in the Westside of the city of Los Angeles. The town was built on surfing, beach activities, and local community. What was once a vast complex of wetlands south of Santa Monica, and the estuary for the Los Angeles River, is now a narrow slice of coast squeezed between man-made Marina Del Rey on the north, the huge upscale housing complex known as Playa Vista to the east, and LAX so close on the south that jets soar directly over the beach. The community is bordered by the Pacific Ocean to the west, Marina Del Rey and Ballona Creek to the north. Playa Del Rey a hidden gem filled with great beach sense and local finds.

P L AYA D E L R E Y, C A

The vast majority of land in Playa Del Rey is zoned for residential purposes only. It is known for its large beachside estates. Only portions of Manchester Avenue, Pershing Drive and Culver Boulevard have businesses—mainly restaurants and a pharmacy—and offices mixed in with residential buildings. The average household income is $126,005, which is a high figure for the state.

E C O N O M Y

P O P U L AT I O N17,624

H O U S E H O L D136,809

AV G H H I N C O M E$158,211

G R O W T H % 2 0 2 0 - 2 0 2 53.67%

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As the second-largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California’s original 27 counties, is one of the nation’s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California’s population. The area continues to grow, especially given the vigorous residential development in downtown LA.

Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United States. The Los Angeles-Orange County metro area alone has an enormous economy with an estimated $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas.

L O S A N G E L E S M S A

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The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism.

E C O N O M Y

T O P E M P L OY E R S

18.7 MILPOPULATION

$56,551MEDIAN

HOUSEHOLD INCOME

4.4% UNEMPLOYMENT

RATE

POPULATION 1-MILE 3-MILE 5-MILE2025 Projection 18,270 136,809 378,5262020 Estimate 17,624 132,777 369,2722010 Census 16,516 121,219 349,457

POPULATION GROWTH 1-MILE 3-MILE 5-MILEGrowth % 2020-2025 3.67% 3.04% 2.51%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE2025 Projection 9,689 64,792 170,4102020 Estimate 9,412 62,789 165,9832010 Census 9,015 56,964 156,326

INCOME 1-MILE 3-MILE 5-MILE2020 Avg Household Income $158,211 $156,772 $137,418

D E M O G R A P H I C S

P O P U L AT I O N AT A G L A N C E

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W I N D W A R DC I R C L E

M U S C L EB E A C H

V E N I C ES K A T E PA R K

M A R I N A D E LR E Y

V E N I C E O F A M E R I C AC E N T E N N I A L PA R K

T H E B O Y &

T H E B E A R

P E N M A R PA R K

P L A Y A D E LR E Y

W E S T M I N S T E RO F F - L E A S H PA R K

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M E D I A N H O U S E H O L DI N C O M E : $ 9 7, 3 1 1

M E D I A N H O U S E H O L DI N C O M E : $ 1 0 1 , 8 6 0

P L A Y A D E L R E Y


M E D I A N H O U S E H O L DI N C O M E : $ 9 2 , 9 4 2


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8108-8110 Pershing DrivePlaya Del Rey, CA 90293

Number of Units: 2

Year Built: 1959

APN: 4115-006-003

Gross Sq. Ft.: 2,230

Average S.F. Per Unit: 1,115

Lot Size (SF): 5,000

Density: 17

I N V E S T M E N T S U M M A RY

Offering Price

Price/Unit

Price/Foot

CURRENT MARKETCap Rate GRM Cap Rate GRM

$1,665,000 $832,500 $746.64 3.62% 19.23 3.93% 18.14

TotalUnits

Unit Mix

Unit Mix%

CurrentAvg Rent

Current Monthly Rent

MarketRent

MarketMonthly Rent

1 2+2 50% $3,300 $3,300 $3,650 $3,650

1 3+2 50% $3,915 $3,915 $4,000 $4,000

Scheduled Monthly Rent: $7,215 $7,650

Scheduled Yearly Rent: $86,580 $91,800

U N I T M I X

F I N A N C I A L O V E R V I E W

Current MarketScheduled Gross Income: $86,580 $91,800 6% UpsideLess Vacancy Reserve: $2,597 3.0% $2,754 3.0%Gross Operating Income: $83,983 $89,046Expenses: $23,645 27.3% $23,645 25.76% *Net Operating Income: $60,338 $65,401Pre-Tax Cash Flow: $60,338 3.62% $65,401 3.93% **Total Return Before Taxes: $60,338 3.62% $65,401 3.93% *** As a percent of Scheduled Gross Income** As a percent of Down Payment

A N N U A L I Z E D O P E R AT I N G D ATA

% of SGI Current Per Unit Market Per Unit % of SGIProperty Taxes 1.196% x Sale Price 23.71% $19,914 $9,957 $19,914 $9,957 21.7%Insurance Actual 2019 0.93% $781 $390 $781 $390 0.9%Repairs & Maintenance $500 x Units 1.19% $1,000 $500 $1,000 $500 1.1%Contract Services $300 x Units 0.71% $600 $300 $600 $300 0.7%Utilities $675 x Units 1.61% $1,350 $675 $1,350 $675 1.5%Total Expenses 28.15% $23,645 $11,822 $23,645 $11,822 25.8%

Current Per Unit % of SGINon-controllable expenses: Taxes, Ins., Reserves: $20,695 $10,347 23.9%Total Expense without Taxes $3,731 $1,865 4.31%

P R O F O R M A A N N U A L O P E R AT I N G E X P E N S E S

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Unit Mix Rent Market Rent8108 3+2 $3,915 $4,000

8110 2+2 $3,300 $3,650

Totals: $7,215 $7,650

Averages: $3,608 $3,825

R E N T R O L L

**Rent As of Aug 1, 2020

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8108-8110 Pershing Drive

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8108-8110 PERSHING DR SALES COMPARABLES

Property Address Sale Price Units Price/Unit SqFt Price/SF Lot Size Cap Rate GRM Year Built

Days on Market Sold Date Unit Mix

8108-8110 Pershing Dr, Play Del Rey, CA 90293 $1,665,000 2 $832,500 2,230 $746.64 5,000 3.62% 19.23 1959 - - (1) - 3+2

(1) - 2+2

103 Montreal Street, Playa Del Rey, CA 90293 $1,500,000 2 $750,000 1,872 $801.28 2,552 2.91% 24.04 1957 46 8/30/2019 (1) - 3+1

(1) - 3+1

6405 Pacific Ave, Playa Del Rey, CA 90293 $1,845,000 2 $922,500 2,208 $835.60 2,079 3.63% 22.03 1967 5 8/2/2018 (1) - 3+2

(1) - 2+1.5

6501 Vista Del Mar, Playa Del Rey, CA 90293 $2,255,000 2 $1,127,500 2,976 $757.73 2,700 4.09% 17.56 1972 285 6/27/2018 (1) - 3+3

(1) - 2+2.5

113 Rees Street, Playa Del Rey, CA 90293 $1,820,000 2 $910,000 2,256 $806.74 2,723 3.44% 20.36 1956 26 6/22/2018 (1) - 2+2

(1) - 2+1

6521 Pacific Ave, Playa Del Rey, CA 90293 $2,000,000 2 $1,000,000 3,148 $635.32 1,838 3.52% 26.25 2003 3 4/25/2018 (1) - 2+2

(1) - 1+1.5

425 Culver Blvd, Playa Del Rey, CA 90293 $1,850,000 2 $925,000 3,302 $560.27 2,501 3.36% 20.33 1968 127 3/22/2018 (1) - 3+2

(1) - 1+1

6325 Vista Del Mar, Playa Del Rey, CA 90293 $1,815,500 2 $907,750 2,538 $715.33 2,700 3.69% 21.68 1969 147 1/30/2018 (1) - 3+2

(1) - 2+2

AVERAGES $934,678.57 $730.32 3.52% 21.75

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This Offering Memorandum contains select information pertaining to the business and affairs of 8108-8110 Pershing Drive in Playa Del Rey, CA (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or

manner detrimental to the interest of the Seller.4. The agent has direct ownership and financial interest in this property

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and Delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

CONFIDENTIALITY AGREEMENT & DISCLAIMER

O F F E R I N G M E M O R A N D U M


LISTED BY

CALVIN SHORT SVP & Senior Director


NABIL AWADA Associate


8108-8110 pershing drive · 2020. 10. 27. · 8108-8110 pershing drive is a 2-unit apartment...

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