“the gentry” offering memorandum...changed hands several times during the late 19th century and...
TRANSCRIPT
OFFERING MEMORANDUM4224 Gentry Avenue | Studio City, CA 91604
[email protected] [email protected]
EXCLUSIVELY LISTED BY:DAVID WEINBERGER
REAL ESTATE ADVISOR818-970-0915
DENNIS CHERNOVREAL ESTATE ADVISOR818-355-2461
[email protected] [email protected]
“THE GENTRY”
ADAM ZUNDERREAL ESTATE [email protected]
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CityDISCLAIMER
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 significance 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 transaction.
All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. 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 KW Commercial 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.
Executive Summary
Property Overview
Market Overview
Financials
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CityTABLE OF CONTENTS
4224 Gentry Avenue, “The Gentry,” is a rare fourplex located in Studio City one of the most desirable neighborhoods in Los Angeles. neighborhoods in Los Angeles. “The Gentry” is comprised of two structures totaling 2,780 SF that resides on a 6,919 square foot lot.
The Comparable sales approach was utilized to formulate the listing price for ‘the Bellevue.” This approach factors in similar property types, location, price per square foot, condition of the property, year built, rents associated with the property, lease terms, tenant base, and metrics such as the Capitalization Rate, Gross rent Multiplier, and Price Per Door.
4224 Gentry Avenue Studio City, CA 91604
2368-016-033
4
1946 / 1929
Apartments
2
Property Address:
Assessors Parcel Number:
Buildings:
Year Built:
Land Use:
Stories:
PROPERTY DETAILS
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CityEXECUTIVE SUMMARY
04
In the heart of Studio City, this 4-Plex sits on a 6,919 sqft lot conveniently located near
shops and restaurants on the Boulevard. The units are separated into two duplexes; the
front duplex was built in 1929 and the back duplex was built in 1946. Each unit features
one bedroom and one bathroom units.
All units have open floor plans and have been wonderfully maintained. The front units have been
recently updated, have central forced air, and each have a large private patio. Every unit has a separate one
car garage. Additional features include a small front yard, on site coin operated laundry, new landscaping, new
LED lighting, new rear stairs, and so much more.
“The Gentry” is located the highly desirable area of Studio city which is nestled on the northern side of the Hollywood
Hills, Studio City was given its name by developers who sought to attract big movie studios to the area in the 1920s. Studio City’s
main drag is Ventura Boulevard, a bustling strip of vintage stores, juice joints, strip malls, and bars that always attracts a crowd.
On weekends, it’s buzzing with expensive SUVs, caffeinated Instagrammers, and fashionistas trawling the boutiques for bargains.
On the back streets, you’ll find a leafy oasis full of Spanish-style houses and neat, tree-lined streets that wouldn’t be out of place in Hancock Park
or the Pacific Palisades
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CityPROPERTY DESCRIPTION
05
VACANT UNIT:
4224 Gentry is exactly what you’re seeking in an investment property, which is a vacant unit! One of the singles will be delivered vacant, so market rents can be achieved on day one.
RARITY OF SALE:“The Gentry” is an anomaly for the Studio City area, where properties of this caliber seldom sell. These types of opportunities do not come around often and the astute investor will take notice.
THE OPPORTUNITY: “The Gentry” is ideal for an Owner/User or Investor due to the opportunity to live in one unit and reap the benefits of the rental income or rent all the units out and achieve a solid 4.8% cap rate in an area known for appreciation.
LOCATION, LOCATION, LOCATION:
“The Gentry” offers investors a rare opportunity to acquire a residential income property in Studio City which is consistently a place that professionals, families, and single people want to live. The Studio City rental market continues to increase with historically low vacancy rates and long-term appreciation.
GREAT WALKABILITY: With a 80 Walk Score, “The Gentry” is a “Very Walkable” location where daily errands to Trader Joes, Vons, or Whole Foods can be done without a vehicle. Residents can walk to the Farmer’s Market, Black Market Liquor bar, or one of the many parks close by.
TRANSIT ORIENTED:“The Gentry” is located close to major freeways and bus lines that can take tenants across the city.
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CityPROPERTY HIGHLIGHTS
06
EXCEPTIONAL FINANCING / LOAN OPTIONS: Buyers can acquire the property with historically low interest rates and attractive financing options.
SITE DESCRIPTION
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CityPROPERTY INFORMATION
07
UTILITIES
Units
Gross Square Footage
Parcel Size
Parking
Water
Sewer
Electricity
Gas
Master Metered - LADWP
Master Metered - LADWP
Separately Metered - LADWP
Seperately Metered - LADWP
4
2,780
6,919
4 Spaces
INTERIOR PHOTOSOFFERING MEMORANDUM | 4224 Gentry Avenue, Studio City
08
09
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CityINVESTMENT HIGHLIGHTS
4Parking Spaces
4Units
1946 / 1929Year Built
6,919Lot Sq Ft
2,780Bldg Gross Sq Ft
$1,449,000
4.8%
5.2%
14.52
12.04
$521.22
$362,250
4.8%
-$7,039
($410.13)
Offering Price
Current CAP
Market CAP
Current GRM
Market GRM
Cost Per SF
Cost Per Unit
Cash on Cash Return
Expenses Per Unit
Expenses Per Sq Ft
Repairs & Maintenance: Repairs and Maintenance is underwritten as a pro forma expense of $250 per unit / year
Contract Service: Expenses provided by selller
Management Fee: Projected at 3.5% of Total Annual Income
Real Estate Taxes: Taxes have been underwritten based upon the 2019 tax rate of 1.2%.
Property Insurance: Based upon market rate of 25 cents / SF per year, includes Fire and earthquake
Utilities: based off seller provided information
01
02
03
04
05
06
10
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CityFINANCIALS
NOTATIONS:
# of Units Unit Type Avg. Rent Total Avg. Rent IncomeDown Payment #REF!
Total Rental Income
Laundry Income
Total Monthly IncomeTotal Annual Income
BUILDING DATA
FINANCIAL INDICATORS ESTIMATED ANNUALIZED EXPENSES
CURRENT MARKET
SOURCE OF INCOME
EST. ANNUALIZED OPERATING DATA
CURRENT RENTS MARKET RENTSOffering Price
Current CAP
Market CAP
Current GRM
Market GRM
Cost Per SF
Cost Per Unit
Cash on Cash Return
Expenses Per Unit
Expenses Per Sq Ft
$1,449,000
4.8%
6.2%
14.52
12.04
$521.22
$362,250
4.81%
-$7,039
($10.13)
4
1946 / 1929
6,919
2,780
4
Units
Year Built
Lot Sq Ft
Bldg Gross Sq Ft
Parking Spaces
New Property Taxes
Utilities
Property Insurance, Fire & Earthquake
Registration Fees
Trash
Landscaping
Repairs & Maint (est)
Offsite Management (3.5%)
Total Estimated Expenses
$17,388
$2,882
$2,000
$216
$217
$960
$1,000
$3,494
$28,157
2 Large 1 Bedroom / 1 Bathroom2 1 Bedroom / 1 Bathroom
$2,163 $4,326 $2,750 $5,500 $1,984 $3,967 $2,250 $4,500
$8,293 $10,000
$25 $25
$8,318 $10,025 $99,816 $120,300
Scheduled Gross Income
Less Vacancy
Gross Operating Income
Less Expenses
Net Operating Income
Less Loan Payment
Pre-Tax Cash Flow
Return on Investment
$99,816.00
2.0% ($1,996)
$97,820
28.8% $28,157
$69,663
$0
$69,663
4.8%
$120,300
2.0% ($2,406)
$117,894
23.4% $28,157
$89,737
$0
$89,737
6.2%
11
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CityRENT ROLL
POST RENOVATION MARKET RENT
CURRENT RENT
4224
4226
4224 1/2
4226 1/2
UNIT STATUS UNIT TYPE CURRENT RENT MARKET RENT
Occupied
Occupied
Occupied
Vacant
Large 1 Bedroom / 1 Bathroom
Large 1 Bedroom / 1 Bathroom
1 Bedroom / 1 Bathroom
1 Bedroom / 1 Bathroom
$2,060
$2,266
$1,717
$2,250
$2,750
$2,750
$2,250
$2,250
$8,293 $10,000
12
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CityAERIAL MAP
13
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CitySTUDIO CITY MARKET OVERVIEW
Studio City is a neighborhood in Los Angeles, California with a population of 43,403. Studio City is in Los Angeles County and is one of
the best places to live in California. Living in Studio City offers residents an urban feel and most residents rent their homes. In Studio
City there are a lot of bars, restaurants, coffee shops, and parks. The public schools in Studio City are above average.
Originally known as Laurelwood, the area that Studio City occupies was formerly part of Rancho Ex-Mission San Fernando. This land
changed hands several times during the late 19th Century and was eventually owned by James Boon Lankershim(1850–1931), and
eight other developers who organized the Lankershim Ranch Land and Water Company. In 1899, however, the area lost most water
rights to Los Angeles and therefore subdivision and sale of land for farming became untenable.
14
OFFERING MEMORANDUM | 4224 Gentry Avenue, Studio CitySTUDIO CITY MARKET OVERVIEW
Construction of the Los Angeles Aqueduct began in 1908 and water reached the San Fernando Valley in November, 1913. Real estate boomed,
and a syndicate led by Harry Chandler, business manager of the Los Angeles Times, with Hobart Johnstone Whitley, Isaac Van Nuys, and James
Boon Lankershim acquired the remaining 47,500 acres (192 km2) of the southern half of the former Mission lands—everything west of the
Lankershim town limits and south of present-day Roscoe Boulevard excepting the Rancho Encino. Whitley platted the area of present-day
Studio City from portions of the existing town of Lankershim as well as the eastern part of the new acquisition.
In 1927, Mack Sennett began building a new studio on 20 acres donated by the land developer. The area around the studio was named Studio City. In 1955, Studio City's Station 78 became the first racially integrated station in the Los Angeles City Fire Department
15
WALKABILITY
4224 Gentry Avenue has a Walk Score of 80 out of 100. This
location is Very Walkable so most errands can be accomplished on
foot.
This location is in the Studio City neighborhood in Los Angeles.
Nearby parks include Moorpark Park, Studio City Park and
Woodbridge Park.
80Walk Score Very Walkable
Most errands can beaccomplished on foot.
63Bike Score
Bikeable
45Transit Score Good Transit
A few nearby publictransportation options.
BROKER OPINION OF VALUE | 4224 Gentry Avenue, Studio City
Flat as a pancake, minimalbike lanes.
OFFERING MEMORANDUM4224 GENTRY AVENUE | STUDIO CITY, 91604
“THE GENTRY”
[email protected] [email protected]@kw.com [email protected]
EXCLUSIVELY LISTED BY:DAVID WEINBERGER
REAL ESTATE ADVISOR818-970-0915
DENNIS CHERNOVREAL ESTATE ADVISOR818-355-2461
[email protected] [email protected]
ADAM ZUNDERREAL ESTATE [email protected]