colby portfolio om - loopnet · offering summary price $7,250,000 down payment 100% / $7,250,000...

Offering Memorandum

1721-1723 COLBY AVELos Angeles, CA 90025

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to

be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other

person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to

provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of

interest in the subject property. The information contained herein is not a substitute for a thorough due diligence

investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with

respect to the income or expenses for the subject property, the future projected financial performance of the

property, the size and square footage of the property and improvements, the presence or absence of contaminating

substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the

improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or

intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure

has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding

these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the

information provided. All potential buyers must take appropriate measures to verify all of the information set forth

herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017

Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in

this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply

affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or

subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for

the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

1721-1723 COLBY AVE

Los Angeles, CA

ACT ID Y0121600

2

1721-1723 COLBY AVE

3

INVESTMENT

OVERVIEW

OFFERING SUMMARY

Price $7,250,000

Down Payment 100% / $7,250,000

Loan Type All Cash

Lot Size (SF) 19,591

Price/SF $370.07

Lot Size (Acres) 0.45 acre(s)

Price/Acre $16,120,157

Price/Unit $302,083

Allowable Buildable SF 58,773

Number of Lots 3

Price/Lot $2,416,667

Type of Ownership Fee Simple

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

#

1721-1723 COLBY AVE

4

1721-1723 COLBY AVE

4

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES *

Ucla Health System Auxiliary 17,004

Fcp Voteco LLC 12,224

Auge International 6,000

Smart & Final Holdings LLC 5,910

West Los Angeles V A Med Ctr 5,400

Anschutz Film Group 5,002

Mtv Networks 5,001

Greater Los Angeles Health 5,000

Taskus Inc 5,000

Team One 5,000

Earth Technology Corp USA 4,655

Cardiac Noninvasive Laboratory 4,604

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2016 Estimate Pop 47,534 295,976 591,223

2016 Census Pop 44,840 279,952 560,930

2016 Estimate HH 24,682 137,226 276,561

2016 Census HH 23,108 128,402 259,316

Median HH Income $67,608 $72,357 $73,173

Per Capita Income $50,911 $57,593 $58,894

Average HH Income $97,530 $122,174 $124,672

* # of Employees based on 5 mile radius

1721-1723 COLBY AVE

OFFERING SUMMARY

Prime West Los Angeles Location

3 Contiguous Lots totaling 19,591 sqft of R3 Zoning

Can Build 24 Units by Right Without Any Density Bonus

INVESTMENT HIGHLIGHTS

Marcus & Millichap, is pleased to present the opportunity to acquire 1721-1723 Colby Avenue, an LAR3-1 zoned property with a 19,591-square foot lot. The property

consists of three contiguous lots, currently containing a 1,597-square foot duplex, a 6,157-square foot seven unit apartment, and a vacant lot. This multifamily

redevelopment will be subject to rent control stabilization ordinance, located in the heart West Los Angeles. Built in 1957 and 1960 respectively, currently with below

market rents, this property represents a unique opportunity to acquire a development / value-add asset in a very prime area of Los Angeles with strong economic growth

and usually high barriers to entry.

1721-1723 Colby Ave, is located in the heart of West Los Angeles. The property is just one block south Santa Monica Blvd. and nestled a few blocks in between Barrington

and Sawtelle. This incredible location is just a short drive away from Brentwood, Westwood and Century City. Residents could also walk to nearby Japantown on Sawtelle

Blvd. The proeprty is also conveniently located near the 405 & 10 Freeways as well as the Expo Line’s Bundy Station, offerring easy access to get around the city.

The property is being offered in its current condition, allowing the buyer/developer income while they plan their add value options or ground up development.

INVESTMENT OVERVIEW

5

1721-1723 COLBY AVE

Property Photos

6

1721-1723 COLBY AVE

OFFERING SUMMARY

Current Rent Rolls

7

Unit # 4 is currently vacant

*Unit mix taken from Title, units might be larger with more bedrooms

REGIONAL MAP

1721-1723 COLBY AVE

8

LOCAL MAP

1721-1723 COLBY AVE

9

AERIAL PHOTO

1721-1723 COLBY AVE

10

AERIAL PHOTO

1721-1723 COLBY AVE

11

AERIAL PHOTO

1721-1723 COLBY AVE

12

AERIAL PHOTO

1721-1723 COLBY AVE

13

AERIAL PHOTO

1721-1723 COLBY AVE

14

1721-1723 COLBY AVE

15

MARKET

COMPARABLES

1721-1723 COLBY AVE

SALES COMPARABLES MAP

16

1721-1723 COLBY AVE

(SUBJECT)

1553 Armacost Ave

2412 Federal Ave

1427-1431 Greenfield Ave

11837 Kiowa Ave

SALES COMPARABLES

1

2

3

4

PROPERTY NAME1721-1723 COLBY AVE

SALES COMPARABLES

17

SALES COMPARABLES

Avg. $250,798

$0

$40,000

$80,000

$120,000

$160,000

$200,000

$240,000

$280,000

$320,000

$360,000

$400,000

1721-1723

Colby Ave

1553

Armacost

Ave

2412

Federal Ave

1427-1431

Greenfield

Ave

11837

Kiowa Ave

Average Price Per Buildable Unit

Avg.

$13,094,148

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

1721-1723

Colby Ave

1553

Armacost

Ave

2412

Federal Ave

1427-1431

Greenfield

Ave

11837

Kiowa Ave

Average Price Per Acre

Avg. $300.60

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

$400.00

$450.00

$500.00

1721-1723

Colby Ave

1553

Armacost

Ave

2412

Federal Ave

1427-1431

Greenfield

Ave

11837

Kiowa Ave

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM

1721-1723 COLBY AVE

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


18

SALES COMPARABLES

Asking Price $7,250,000

Down Payment $7,250,000

Down Payment % 100%

Price/SF $370.07

Lot Size (Acres) 0.45 acre(s)


1721-1723 COLBY AVE1721-1723 Colby Ave, Los Angeles, CA, 90025

1

Close of Escrow 8/24/2016

Sales Price $1,700,000

Zoning R3

Price/SF $243.92

Lot Size (Acres) .16


1553 ARMACOST AVE1553 Armacost Ave, Los Angeles, CA, 90025

2



Zoning R3

Lot Size (SF) 4,856

Price/SF $233.16



2412 FEDERAL AVE2412 Federal Ave, Los Angeles, CA, 90064

Price Per Buildable Door: $302,083.33 Price Per Buildable Door: $212,500Price Per Buildable Door: $191,176.47

PROPERTY NAME

MARKETING TEAM

1721-1723 COLBY AVE

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


19

SALES COMPARABLES

3



Down Payment % 100%

Zoning R3

Lot Size (SF) 13,500

Price/SF $301.77



1427-1431 GREENFIELD AVE1427-1431 Greenfield Ave, Los Angeles, CA, 90025

4



Zoning R3

Price/SF $423.56



11837 KIOWA AVE11837 Kiowa Ave, Los Angeles, CA, 90049

Price Per Buildable Door: $254,687.5

Price Per Buildable Door: $344,827.55

8

1721-1723 COLBY AVE

RENT COMPARABLES MAP

1721-1723 COLBY AVE

(SUBJECT)

1831 Sawtelle Blvd

1759 Beloit Ave

1810 Pandora Ave

1810-16 Selby Ave

10815 Missouri Ave

1539 Beloit Ave

1526 Armacost Ave

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

7

1

2

3

5

6

20


RENT COMPARABLES

21

AVERAGE RENT - MULTIFAMILY

Avg. $4,392

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

1831

Sawtelle

Blvd

1759

Beloit Ave

1810

Pandora Ave

1810-16

Selby Ave

10815

Missouri

Ave

1539

Beloit Ave

1526

Armacost

Ave

3 Bedroom

Avg. $2,880

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

1831

Sawtelle

Blvd

1759

Beloit Ave

1810

Pandora Ave

1810-16

Selby Ave

10815

Missouri

Ave

1539

Beloit Ave

1526

Armacost

Ave

1 Bedroom

Avg. $4,304

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

1831

Sawtelle

Blvd

1759

Beloit Ave

1810

Pandora Ave

1810-16

Selby Ave

10815

Missouri

Ave

1539

Beloit Ave

1526

Armacost

Ave

2 Bedroom

PROPERTY NAME

MARKETING TEAM

1721-1723 COLBY AVE

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


22

YEAR BUILT: 2016

1

Unit Type Units SF Rent Rent/SF

1 Bdr 1 Bath 1 $2,696

Total/Avg. 1 $2,696

1831 SAWTELLE BLVD1831 Sawtelle Blvd, Los Angeles, CA, 90025

YEAR BUILT: 2009

2


1 Bdr 1 Bath 1 $2,995

Total/Avg. 1 $2,995

1759 BELOIT AVE1759 Beloit Ave, Los Angeles, CA, 90025

3

YEAR BUILT: 2017


1 Bdr 1 Bath 1 $2,950

2 Bdr 2 Bath 1 $4,290

3 Bdr 2 Bath 1 $4,590

Total/Avg. 3 $3,943

1810 PANDORA AVE1810 Pandora Ave, Los Angeles, CA, 90025-5019

PROPERTY NAME

MARKETING TEAM

1721-1723 COLBY AVE

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


23

YEAR BUILT: 2013

4


2 Bdr 2 Bath 1 $4,825

Total/Avg. 1 $4,825

1810-16 SELBY AVE1810 Selby Ave, Los Angeles, CA, 90025

YEAR BUILT: 2017

5


2 Bdr 2 Bath 1 $3,797

Total/Avg. 1 $3,797

10815 MISSOURI AVE10815 Missouri Ave, Los Angeles, CA, 90025

6

YEAR BUILT: 2014


3 Bdr 2 Bath 1 $4,295

Total/Avg. 1 $4,295

1539 BELOIT AVE1539 Beloit Ave, Los Angeles, CA, 90025

PROPERTY NAME

MARKETING TEAM

1721-1723 COLBY AVE

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


24

YEAR BUILT: 2015

7


3 Bdr 2 Bath 1 $4,290

Total/Avg. 1 $4,290

1526 ARMACOST AVE1526 Armacost Ave, Los Angeles, CA, 90025

1721-1723 COLBY AVE

25

MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEW

WESTSIDE CITIES, LOS ANGELES

GROWING TECH SECTOR

The region’s growing high-tech sector has awarded the Santa Monica/Venice

area the nickname of “Silicon Beach,” attracting companies such as Google.

WELL-EDUCATED WORKFORCE

Area residents are well educated. A majority of adults possess at least a

bachelor’s degree and more than a quarter also have a graduate degree.

HIGH INCOMES

Educational attainment translates into a median household income that is well

above the national average. High home prices, however, keep the

homeownership level near 40 percent.

The Westside Cities area is located west of downtown Los Angeles and

north of Los Angeles International Airport. The market contains the

following submarkets: Brentwood-Westwood-Beverly Hills; Palms-Mar

Vista; and Santa Monica-Marina del Rey. Cities from Venice to Playa Del

Rey to Culver City are all located within these submarkets. The region is

projected to add 11,600 residents through 2021, resulting in the

formation of more than 6,500 households.

Major employers in the region include entertainment giants 21st Century Fox and Sony Pictures.

While roughly 20,000 jobs are in the motion-picture industry, ancillary businesses tied to

entertainment are a major source of employment, as is marketing and advertising.

The large healthcare industry is represented by UCLA Medical Group, Cedars-Sinai Medical Center,

St. John’s Medical Center and the local VA.

Educational institutions including UCLA, Loyola Marymount and Pepperdine University employ more

than 42,000 workers.

Tourism and retail shopping are major players in the local economy.

39.1

2016MEDIAN AGE:

$76,700

2016 MEDIAN HOUSEHOLD INCOME:

DEMOGRAPHICS

U.S. Median:

37.7U.S. Median:

$57,200

647K

2016POPULATION:

Growth2016-2021*:

1.8%

300K

2016HOUSEHOLDS:

2.2%

Growth2016-2021*:

ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

1721-1723 COLBY AVE

26

PROPERTY NAME

MARKETING TEAM

1721-1723 COLBY AVE

DEMOGRAPHICS

Source: © 2016 Experian

Created on November 2017

POPULATION 1 Miles 3 Miles 5 Miles

2021 Projection

Total Population 48,196 301,002 602,127

2016 Estimate


2010 Census


2000 Census


Daytime Population

2016 Estimate 70,440 445,766 808,448

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2021 Projection

Total Households 25,033 139,954 282,881

2016 Estimate


Average (Mean) Household Size 1.92 2.04 2.07

2010 Census


2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2016 Estimate

$250,000 or More 5.21% 9.60% 9.98%

$200,000 - $249,999 3.05% 4.84% 4.95%

$150,000 - $199,999 7.01% 7.74% 7.77%

$125,000 - $149,999 5.89% 5.88% 5.97%

$100,000 - $124,999 9.52% 9.09% 9.21%

$75,000 - $99,999 14.20% 11.31% 11.07%

$50,000 - $74,999 17.35% 15.50% 15.49%

$35,000 - $49,999 11.14% 10.11% 9.96%

$25,000 - $34,999 7.37% 6.53% 6.67%

$15,000 - $24,999 8.26% 7.55% 7.69%

Under $15,000 10.99% 11.83% 11.24%

Average Household Income $97,530 $122,174 $124,672

Median Household Income $67,608 $72,357 $73,173

Per Capita Income $50,911 $57,593 $58,894

27

PROPERTY NAME

MARKETING TEAM

1721-1723 COLBY AVE

DEMOGRAPHICS


Created on November 2017

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population by Age

0 to 4 Years 4.36% 4.39% 4.67%

5 to 14 Years 4.70% 7.02% 7.77%

15 to 17 Years 1.18% 1.97% 2.27%

18 to 19 Years 0.84% 3.60% 2.61%

20 to 24 Years 9.47% 10.83% 8.14%

25 to 29 Years 16.03% 10.22% 9.43%

30 to 34 Years 14.39% 9.78% 9.65%

35 to 39 Years 10.19% 7.79% 8.06%

40 to 49 Years 13.17% 13.02% 14.14%

50 to 59 Years 9.68% 11.57% 12.51%

60 to 64 Years 4.35% 5.14% 5.48%

65 to 69 Years 3.73% 4.43% 4.71%

70 to 74 Years 2.42% 3.15% 3.33%

75 to 79 Years 1.99% 2.38% 2.45%

80 to 84 Years 1.49% 1.93% 1.99%

Age 85+ 2.03% 2.77% 2.79%

Median Age 34.62 36.30 38.33

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population 25+ by Education Level

2016 Estimate Population Age 25+ 37,765 213,647 440,754

Elementary (0-8) 3.74% 2.36% 3.17%

Some High School (9-11) 3.07% 3.00% 3.35%

High School Graduate (12) 8.13% 9.32% 10.62%

Some College (13-15) 13.24% 15.34% 16.07%

Associate Degree Only 4.06% 5.15% 5.28%

Bachelors Degree Only 41.29% 36.21% 34.96%

Graduate Degree 26.02% 27.96% 25.57%

28

Income

In 2016, the median household income for your selected geography is

$67,608, compare this to the US average which is currently $54,505.

The median household income for your area has changed by 45.24%

since 2000. It is estimated that the median household income in your

area will be $81,127 five years from now, which represents a change

of 20.00% from the current year.

The current year per capita income in your area is $50,911, compare

this to the US average, which is $29,962. The current year average

household income in your area is $97,530, compare this to the US

average which is $78,425.

Population

In 2016, the population in your selected geography is 47,534. The

population has changed by 8.70% since 2000. It is estimated that the

population in your area will be 48,196.00 five years from now, which

represents a change of 1.39% from the current year. The current

population is 49.61% male and 50.39% female. The median age of

the population in your area is 34.62, compare this to the US average

which is 37.68. The population density in your area is 15,128.20

people per square mile.

Households

There are currently 24,682 households in your selected geography.

The number of households has changed by 6.52% since 2000. It is

estimated that the number of households in your area will be 25,033

five years from now, which represents a change of 1.42% from the

current year. The average household size in your area is 1.92 persons.

Employment

In 2016, there are 65,008 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

82.03% of employees are employed in white-collar occupations in

this geography, and 17.88% are employed in blue-collar occupations.

In 2016, unemployment in this area is 4.53%. In 2000, the average

time traveled to work was 27.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

59.85% White, 2.83% Black, 0.12% Native American and 22.93%

Asian/Pacific Islander. Compare these to US averages which are:

70.77% White, 12.80% Black, 0.19% Native American and 5.36%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 17.59% of the current year

population in your selected area. Compare this to the US average of

17.65%.

PROPERTY NAME

MARKETING TEAM

1721-1723 COLBY AVE

Housing

The median housing value in your area was $647,775 in 2016,

compare this to the US average of $187,181. In 2000, there were

4,600 owner occupied housing units in your area and there were

18,572 renter occupied housing units in your area. The median rent at

the time was $915.


DEMOGRAPHICS

29

8

1721-1723 COLBY AVE

DEMOGRAPHICS

30

TRAFFIC COUNTYEAR COUNT

2009 3,615

2009 2,892

2009 2,500

MARKETING PLAN

#

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX


PRICING AND VALUATION MATRIX


31

MARKET OVERVIEW


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colby portfolio om - loopnet · offering summary price $7,250,000 down payment 100% / $7,250,000...

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