exclusive multi-family offering beachwood …

STEPP COMMERCIAL • 1

1155 N. BEACHWOOD DRIVE EXCLUSIVE MULTI-FAMILY OFFERING

1155 N. Beachwood DriveLos Angeles , CA 9 0038 $2,895,000 10 UNITS

B E A C H W O O D A P A R T M E N T S

Kimberly R. Stepp310.774.3830

[email protected]

Tia Jones310.774.3835

[email protected]

BEACHWOOD APARTMENTS

TABLE OF CONTENTSThe Property Property Overview Property Photographs

The Financials Rent Roll Financial Analysis - Summary Rent Comparables

The Location Overview Map s About Hollywood

Disclaimer & Confidentiality Agreement

346

89

1012

131416

19



THE PROPERTY


PRICE $2,895,000

ADDRESS 1155 N. Beachwood Drive

CITY, STATE, ZIP Los Angeles, CA 90038

COUNTY Los Angeles

YEAR BUILT 1961

NUMBER OF UNITS 10

BUILDING SIZE ± 7,196 SF

LOT SIZE ± 6,749 SF

CURRENT CAP 3.4%

CURRENT GRM 17.9

MARKET CAP 5.2%

MARKET GRM 12.7

UNIT MIX 9 (1 bedroom/1 bath)1 (2 bedroom/1.5 bath)

PARKING 10 Garages and 4 Spaces

ZONING LAR3

RENT CONTROL Yes

BEACHWOOD APARTMENTS

PROPERTYOVERVIEWThe Beachwood Apartments offer investors an excellent opportunity to own a stabilized asset in the prime Hollywood submarket of Los Angeles county with 41% rental upside. The corner lot property is comprised of one 2 bedroom + 1.5 bath units and nine 1 bedroom + 1 bath units featuring hardwood floors and ample parking.

Desirable Hollywood Neighborhood

Less than ½ mile from trendy Sunset Boulevard

New Roof

Upgraded Electrical

Copper plumbing

On-Site Laundry

14 Parking Spaces (10 Garages + 4 Spaces)

INVESTMENT HIGHLIGHTS

Hardwood Floors

Ceiling Fans

Some Updated Kitchens

Private Garages

Custom Light Fixtures

UNIT AMENITIES




THE FINANCIALS


1155 N. BEACHWOOD DRIVE EXCLUSIVE MULTI-FAMILY OFFERING RENT ROLL

UNIT # UNIT TYPE ACTUAL RENT MARKET RENT COMMENTS

1 1 Bed / 1 Bath $1,800 $1,800 Delivered vacant at COE

2 2 Bed / 1.5 Bath $1,796 $2,400

3 1 Bed / 1 Bath $1,128 $1,800

4 1 Bed / 1 Bath $1,060 $1,800

5 1 Bed / 1 Bath $1,355 $1,800

6 1 Bed / 1 Bath $1,060 $1,800

7 1 Bed / 1 Bath $1,180 $1,800

8 1 Bed / 1 Bath $1,172 $1,800

9 1 Bed / 1 Bath $1,074 $1,800

10 1 Bed / 1 Bath $1,478 $1,800

Monthly Rental $13,103 $18,600

Monthly Garages $300 $300

Monthly Laundry $65 $65

Total Monthly Income $13,468 $18,965

Scheduled Annual Income $161,616 $227,580 41% Upside Potential in Rents

Rent Roll


1155 N. BEACHWOOD DRIVE EXCLUSIVE MULTI-FAMILY OFFERING FINANCIAL ANALYSIS - SUMMARY

PRICE $ 2,895,000

DOWN PAYMENT 56% $1,635,000

LOAN AMOUNT $1,260,000

DOWN PAYMENT $1,635,000

TERM/INTEREST RATE 5 Yrs Fixed 3.86%

MONTHLY PAYMENT $5,914

ANNUAL PAYMENT $70,970

LOAN-TO-VALUE 44%

AMORTIZATION 30

PROPOSED/EXISTING Proposed

LOAN TERM 360

ADDRESS 1155 N. Beachwood Drive

APN 5534-016-001

NUMBER OF UNITS 10

YEAR BUILT 1961

BUILDING SIZE 7,196

LOT SIZE 6,749 S.F. (35' x 50')

CURRENT CAP RATE 3.4%

CURRENT GRM 17.9

MARKET CAP RATE 5.2%

MARKET GRM 12.7

PRICE PER SF $402

PRICE PER UNIT $289,500

Pricing Summary

Financial Summary

Building Data/Financial Indicators

Unit Type No. of Units Rent Range Average Rent Market Rent

2/1.5 1 $1,796 $1,796 $2,400

1 9 $1,060 - $1,800 $1,256 $1,800

Scheduled Rent Summary

Per Unit Current Actuals

Property Taxes 1.191% $3,448 $34,479

Property Insurance $285 $2,854

Water, Electric $471 $4,714

Management Fee 4.0% $634 $6,335

Gas $148 $1,478

Trash $165 $1651

Landscaping $72 $720

Pest Control $35 $350

Miscellaneous $150 $1,500

Repair Maintenance $650 $6,500

Total Expenses $60,581

Expenses Per Unit: $6,058

Expenses Per SF: $8.42

% of EGI 37.4%

Expense Summary



CURRENT MARKET (PROJECTED)

SCHEDULED GROSS INCOME $161,616 $223,860

LESS VACANCY (2%) $3,232 (5%) ($11,199)

LESS EXPENSES ($60,581) ($62,757)

NET OPERATING INCOME $97,803 $152,024

LESS LOAN PAYMENTS $70,970 ($70,970)

PROJECTED CASH FLOW $26,833 $82,360

PLUS LOAN PRINCIPAL REDUCTION $22,737 $22,737

TOTAL RETURN(excluding appreciation and tax shelter) $49,567 $105,094

RETURN ON DOWN PAYMENT 3.0% 6.4%

PROJECTED ANNUAL CASH FLOW

FINANCIAL ANALYSIS - SUMMARY



Rent Comparables

3

2

4

51

B E A C H W O O DA P A R T M E N T S

Address Unit Type Asking Rent

1 723 N. Gramercy Place Los Angeles, CA 90038 1+1 $1,850

2 800 N. Las Palmas Ave Los Angeles, CA 90038 1+1 $1,895

3 1311 N. Orange DriveLos Angeles, CA, 90038 1+1 $1,800

4 5930 Barton AvenueLos Angeles, CA 90038 1+1 $1,850

5 752 N. Wilton PlaceLos Angeles, CA 90038 1+1 $1,900

Average 1+1 $1,859

Beachwood Apartments1155 N. Beachwood DriveLos Angeles, CA 90038

1+1 $1,117

Address Unit Type Asking Rent

6 5732 Waring AvenueLos Angeles, CA 90038 2+1 $2,398

7 6337 Lexington AvenueLos Angeles, CA 90038 2+2 $2,595

8 5957 Barton AvenueLos Angeles, CA 90038 2+1 $2,450

9 1660 Wilton PlaceLos Angeles, CA 90028 2+2 $2,400

10 821 Wilcox AvenueLos Angeles, CA 90038 2+2 $2,500

Average 2+2 $2,469

Beachwood Apartments1155 N. Beachwood DriveLos Angeles, CA 90038

2+1.5 $1,796

6

7

8

10

9



THE LOCATION



Adjacent Neighborhoods

BEVERLY HILLS

SILVER LAKE

BEACHWOOD A PA R T M E N T S

WEST HOLLYWOOD

HOLLYWOOD

STUDIO CITY

LOS ANGELES



B E A C H W O O D A PA R T M E N T S

Hollywood, California


1155 N. BEACHWOOD DRIVE EXCLUSIVE MULTI-FAMILY OFFERINGHollywood, CaliforniaHollywood is a neighborhood in the city of Los Angeles in the Central L.A. region of Los Angeles County. It merged with Los Angeles in 1910 in order to obtain an adequate water supply. At approximately the same time, the film industry began to locate in the region, seeking to take advantage of natural sunlight that allowed year-round filming and a diverse southern California landscape that provided cheap scenery. In 1914, the director Cecil B. DeMille decided to locate his studio in Hollywood permanently, and other companies followed. By the 1920s, Hollywood had beaten out rivals such as Culver City and Burbank as the place most associated with the film industry, although in fact movie lots were scattered throughout the Los Angeles area. The growing power and romance of film made Hollywood a cultural icon and a major tourist attraction. In the 1950s and 1960s, Hollywood also began to attract television studios and record companies. While still home to many entertainment-related companies and remaining a popular destination for starstruck visitorsfor starstruck visitors, the area’s actual role in the film production began to lag in the 1970s due to soaring production and living costs in Los Angeles. Today, the Hollywood area has an impressive number of development and redevelopment projects that are elevating the brand of the city making it an enticing place for creative businesses, tech, and entertainment companies.



The Hollywood Sign is a landmark and American cultural icon located in Los Angeles, California. It is situated on Mount Lee, in the Hollywood Hills area of the Santa Monica Mountains. The sign overlooks Hollywood, Los Angeles.

The Dolby Theatre is a live-performance auditorium in the Hollywood and Highland Center shopping mall and entertainment complex, on Hollywood Boulevard and Highland Avenue, in the Hollywood district of Los Angeles.

Grauman's Chinese Theatre is a movie palace on the historic Hollywood Walk of Fame at 6925 Hollywood Boulevard in Hollywood.

The Hollywood Walk of Fame comprises more than 2,600 five-pointed terrazzo and brass stars embedded in the sidewalks along 15 blocks of Hollywood Boulevard and three blocks of Vine Street in Hollywood.

Griffith Observatory is a facility in Los Angeles, California, sitting on the south-facing slope of Mount Hollywood in Los Angeles' Griffith Park.

Universal Studios Hollywood is a film studio and theme park in the Universal City county island area of the San Fernando Valley of Los Angeles County.

COMMUNITY HIGHLIGHTS



One of many new and coming hotels in the central Hollywood area, the futuristic Dream Hollywood Hotel on Selma near Cahuenga is gearing up for its opening this summer. New renderings of the structure give a peek at one of the 179 guest rooms inside the 10-story hotel, the double-height lobby, and the landscaped "public alley" that will link up the five eateries and nightlife spots in and adjacent to the hotel.

The Argyle Hotel, a 16-story, 220-room hotel at 1800 N Argyle Ave in Hollywood - not far from Capitol Records - has opened its doors. This is one of three high-rise projects underway at the intersection of Argyle Avenue and Yucca Street. Designed by San Diego’s ACRM Architects, the 184-foot tower will have a swimming pool on the fifth level and parking for 93 cars on four levels, three above grade and one below. The hotel also has a restaurant, meeting space and banquet facilities.

When Chef Greg Bernhardt and Nicolas Fanucci joined forces with Plan Do See hospitality group for an iconic Hollywood restaurant, they had to jump at the opportunity to revive Hollywood's grand dining scene. Formerly home to CBS Studios, this Sunset Blvd-facing space once served media titans just steps from their offices. And now, with the stylish Neuehouse space next door and a slew of modern concepts like Sugarfish and sweetgreen, Paley is poised to bring back a sophisticated new dining experience for the 21st century crowd.

Hollywood is becoming somewhat of a fitness mecca. Following SoulCycle and Barry's Bootcamp openings at Eastown, Equinox is set to debut a stunning new space at mixed-user The Camden on Vine Street this fall. The luxury fitness craze's Hollywood space will cover a generous 38,000-square-feet and will host a range of cool perks. In addition to housing four studios where fitness fiends can take in barre, Pilates, and more classes, this location will also offer a full-on spa, a juice bar, and—yes!—saltwater and plunge pools.

HOLLYWOOD - DEVELOPMENT PROJECTS



Disclaimer & Confidentiality Agreement

The material contained in this document is confidential, furnished solely for the purpose offering a broker’s opinion of value for the property described therein and is not to be copied and/or used for any purpose or made available to any other person without the express written consent of Stepp Commercial. In accepting this, the recipient agrees to keep all material contained herein confidential.

This broker’s opinion of value has been prepared to provide the seller(s) with a preliminary value for the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. Stepp Commercial and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this informational package has been obtained from sources we believe to be reliable; however, Stepp Commercial and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property.Stepp Commercial and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.

All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals. Stepp Commercial recommends, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

Kimberly R. Stepp310.774.3830

[email protected]

Tia Jones 310.774.3834

[email protected]

The No.1 apartment team for transaction volume in 2016.TOP MULTI-FAMILY

BROKER IN L.A. COUNTY

*

28 CLOSED TRANSACTIONS IN 2017

LA's LEADING MULTI-FAMILY BROKERS*

$91 MSOLD IN 2017

$83 MIN ACTIVE LISTINGS

exclusive multi-family offering beachwood …

Documents