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Ashley's on Fourth • Mixed-Use • 1731 E 4th St. \\ Long Beach, CA 90802
DREW McALLISTER \\ DIRECTOR OF SALES925.683.9203 | [email protected]
NRECOMMERCIAL
4425 Atlantic Ave. Bldg. C Long Beach, CA 90807
Direct \\ 562.528.8105Main \\ 562.423.8143Mobile \\ 925.683.9203BRE \\ 01946829
NRECommercial.com
The material contained in this document is confidential, furnished solely for the purpose of
considering investment in 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
NRECommercial. In accepting this, the recipient agrees to keep all material contained herein
confidential. This information package has been prepared to provide summary information to
prospective buyers and to establish a preliminary level of interest in 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. NRECommercial 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, NRECommercial 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.
DISCLAIMER
NRECOMMERCIAL TABLE OF CONTENTS
EXECUTIVE SUMMARY
Investment & Location Overview ....................................................................................................................... 5
Property Photos .............................................................................................................................................. 6-10
Investment Highlights ...................................................................................................................................... 11
Demographics ................................................................................................................................................ 12
FINANCIAL ANALYSIS
Rent Roll, Expenses & Financial Assumptions ...................................................................................................... 14
Financial Analysis & Rent Roll ........................................................................................................................... 15
NRECOMMERCIAL
EXECUTIVE SUMMARY1731 E 4TH ST.
DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]
Complex Title Ashley's on Fourth
Address 1731 E 4th St.
City, State, Zip Long Beach, CA 90802
County Los Angeles
Year Built 1948
Building Size 5,255 (Est.)
Lot Size 6,666 (Est.)
Unit Mix One - 3 Bed / 1 Bath Apartment
One - Retail (Ashley's on Fourth)
Sales Price $1,795,000
Price/SF $342
Price/SF Lot $269
Zoning Mixed-Use
Year Market Cap Rate 6.38%
NRECOMMERCIAL EXECUTIVE SUMMARY
INVESTMENT OVERVIEWBuilt in 1948, the subject property consists of (1) retail/commercial space encompassing approximately 4,200 square feet and (1) 3 Bed / 1 Bath
residential unit. The current owner operates Ashley's on 4th Restaurant & Bar in the 4,200 square foot retail space as an owner user and rents the
rear 3 bed / 1 bath residential unit for $2,000/mth. The Seller is giving the Buyer total flexibility, by offering the real estate for sale because they
wish to retire. Buyer has the option to take over the existing business as well. This is an incredible opportunity to purchase a landmark building in the
heart of Retro Row in Long Beach with incredible potential. The property has roughly 50 feet of street frontage and is located in a dense residential
& retail corridor. The current owner leases the parking lot across the street (16 spaces) for $1,000/mth, which may be passed on to a new owner.
LOCATION OVERVIEWEstablished in 1938 as an upscale Mexican restaurant & bar, Ashley's on 4th has long been a local staple in the Long Beach Retro Row community. The Alamitos Beach neighborhood and specifically Retro Row along 4th Street has become one of the most diverse, vibrant and growing areas in all of Long Beach. Retro Row is home to a plethora of local eateries, retail shops and the arts, making it a highly sought after location for both the retail & residential markets alike.
DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]
DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]
DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]
DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]
NRECOMMERCIAL EXECUTIVE SUMMARY
DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]
NRECOMMERCIAL EXECUTIVE SUMMARY
DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]
NRECOMMERCIAL EXECUTIVE SUMMARY
INVESTMENT HIGHLIGHTS
4,200 SF of retail/commercial space currently operated as an owner/user restaurant & (1) 3 Bed / 1 Bath residential unit totaling approx. 1,055 SF.
Perfect Owner/User opportunity with additional supporting income from the 3 Bed / 1 Bath residential unit in the rear.
Leased parking lot across the street may be transferred to new ownership.
Four On-Site Garage Parking Spaces beneath residential unit.
Buyer has the option to keep restaurant & kitchen equipment (investory worth +/- $50,000).
Newer industrial A/C & refrigeration units.
Prime Retro Row 4th Street location in Long Beach.
Projected Year 1 Market Cap Rate of 6.38%.
Per the Seller, Roughly 90% of electrical has been upgraded.
Per the Seller, new sewer line put in 8 years ago.
Per the Seller, 100% of plumbing is copper.
Active Type 47 Liquor License will be transferred to new ownership - Allows for sale of beer, wine & hard liquor. Ashley's on Fourth website: https://ashleyson4th.com/.
DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]
DEMOGRAPHICS
Long Beach Population 20171 Mile Radius from Subject Property
Projected 2022 Pop. Growth1 Mile Radius from Subject Property
Total Consumer Spending 2017
3 Mile Radius
5 Mile Radius
Median Age for 201734 Years Old
34 34$679,854
$2,303,162
$4,001,574
31% of Total Consumer Spendingon Food & Alcohol is 1 Mile Radiusfrom Subject Property
$61,670 Average Household Income1 Mile Radius from Subject Property
1 MileRadius
NRECOMMERCIAL EXECUTIVE SUMMARY
NRECOMMERCIAL
FINANCIAL ANALYSIS1731 E 4TH ST.
DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]
Expenses: All expenses, less property taxes, assumes a year over year 1.0% increase.
Cap Rate: Calculated each year based on the projected Net Operating Income divided by the purchase price.
Tenant Improvements/Capital Improvements: Assumes a new Buyer to spend $500,000 to modify the space, renovate the residential unit & modernize.
Total Investment: Calculated as total purchase price, plus $500K in tenant/capital improvements.
Total Return: Calculated as Annual Net Operating Income divided by Total Investment made.
NRECOMMERCIAL FINANCIAL ANALYSIS
Year 1 Income: Assumes market rents for both the 4,200 SF of retail and 3 Bed / 1 Bath residential unit.
Retail Income: Assumes a new 5 year lease at market rent of $2.00/SF & 3% rental escalations each year.
Residential Income: Assumes $2,500 for a market rate 3 Bed / 1 Bath unit.
CAM Expense Reimbursement: Calculated as reimbursement by retail tenant occupying roughly 80% of the total square footage.
CAM Expense Reimbursement: Includes Annual New Property Taxes, Tax Assessments, Insurance and Repairs and Maintenance.
RENT ROLL, EXPENSES & FINANCIAL ASSUMPTIONS:
Expenses:
Property Taxes: Calculated as the basis levy rate of 1.13% times the purchase price.
Tax Assessments: Actual.
Insurance: Calculated as the average for the current owners' trailing two years insurance expense.
Rent Expense: Current owner rents the parking lot across the street (1720 E 4th Street) for $1,000/mth.
Licenses & Permits: Calculated as the average for the current owners' trailing two years expense.
DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]
NRECOMMERCIAL FINANCIAL ANALYSIS & RENT ROLL
PRICING SUMMARY:
Purchase Price: $1,795,000
Price/SF: $342
Price/SF Lot: $269
Year 1 Market Cap Rate: 6.38%
Tenant/Capital Improvements: $500,000
Total Investment: $2,295,000
Year 1 Total Return on Investment: 5.00%
PROPERTY SUMMARY:
Year Built: 1948
Onsite-Parking: (4) On-Site Garage Parking Spaces
Offsite-Parking (Leased): (16) Open Spaces
Building Square Feet: 5,255 (Assessor)
Lot Square Feet Approx: 6,666 (Assessor)
Type Of Building(s): Low-Rise Garden Style
Roof Structure: Flat
RENT ROLL & FINANCIAL ANALYSIS:
Units/Spaces Unit Mix/Type Approx. SF Percent Occupied Year 1 Rent/SF Year 2 Rent/SF Year 3 Rent/SF Year 4 Rent/SF Year 5 Rent/SF
1 3 Bed / 1 Bath Apartment 1,055 20% $2,500 $2.37 $2,575 $2.44 $2,652 $2.51 $2,732 $2.59 $2,814 $2.67
1 Retail (Ashley's on Fourth) 4,200 80% $8,400 $2.00 $8,652 $2.06 $8,912 $2.12 $9,179 $2.19 $9,454 $2.25
TOTALS: 5,255 100% $10,900 $11,227 $11,564 $11,911 $12,268
Disclaimer: Owner and Broker do not make any representations in regards to actual square footage for any units.Potential buyers are advised to independently confirm the validity of measurements for aforementioned units.
Gross Scheduled Income (Annualized): $130,800 $134,724 $138,766 $142,929 $147,217
Garages (4): $7,200 $7,200 $7,200 $7,200 $7,200
CAM Expense Reimbursement: $29,776 $29,989 $30,206 $30,428 $30,655
Gross Operating Income: $167,776 $171,913 $176,171 $180,556 $185,071
Less Estimated Expenses:
New Property Taxes: ($20,348) ($20,348) ($20,348) ($20,348) ($20,348)
New Property Tax Assessments: ($770) ($770) ($770) ($770) ($770)
Insurance: ($10,906) ($11,015) ($11,125) ($11,236) ($11,348)
Utilities: ($3,000) ($3,090) ($3,121) ($3,152) ($3,184)
Repairs & Maintenance: ($5,232) ($5,389) ($5,551) ($5,717) ($5,889)
Rent Expense (Parking Lot): ($12,000) ($12,120) ($12,241) ($12,364) ($12,487)
Licenses & Permits: ($1,043) ($1,053) ($1,064) ($1,074) ($1,085)
Less Total Expenses: ($53,298) ($53,784) ($54,219) ($54,661) ($55,111)
Net Operating Income: $114,478 $118,128 $121,953 $125,896 $129,960
Year 1-5 Cap Rate: 6.38% 6.58% 6.79% 7.01% 7.24%
Tenant/Capital Improvements: $500,000 - - - -
Total Investment: $2,295,000 $2,295,000 $2,295,000 $2,295,000 $2,295,000
Year 1-5 Total Return: 5.00% 5.15% 5.31% 5.49% 5.66%
Note: Cash flow assumptions years 1-5. Assuming 5 year lease. Note: 3% Rental Escalations per year at $2.00/SF.
DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]
NRECOMMERCIAL
4425 Atlantic Ave. Bldg. C Long Beach, CA 90807
Direct \\ 562.528.8105Main \\ 562.423.8143Mobile \\ 925.683.9203BRE \\ 01946829
NRECommercial.com