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TRANSCRIPT
KW COMMERCIAL
11812 San Vicente Blvd., Suite 100
Los Angeles, CA 90049TANNAZ RAHBARCommercial Director, [email protected] #00951232
INCREDIBLE "UN-ENTITLED" LOT FOR DEVELOPMENT: 41U. $56,100/DOOR
OFFERING MEMORANDUM
PRESENTED BY:
2823 LEEWARD AVENUE LOS ANGELES, CA 90005
OFFERING MEMORANDUM
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KW COMMERCIAL
11812 San Vicente Blvd., Suite 100
Los Angeles, CA 90049
TANNAZ RAHBARCommercial Director, [email protected] #00951232
Confidentiality & Disclaimer
OFFERING MEMORANDUM
All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third partysources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance orlack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projectedfinancial 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 toaccuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whetherwritten 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 theseand other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for aparty 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 inspectionsand investigations including through appropriate third party independent professionals selected by such party. All financial data should beverified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independentprofessionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financialdata 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 orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by theparty with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions shouldbe discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complieswith applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by L.A. Brentwood in compliance with all applicable fairhousing 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 orrepresentation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, orwithdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance ofthe property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
PRESENTED BY:
LOS ANGELES, CA
Executive Summary -
2823 LEEWARD AVENUE (IMAGE BELOW IS NOT ACTUAL RENDERING) |
PROPERTY OVERVIEWTannaz Rahbar of Keller Williams Realty, Brentwood, is proud to presentthis UNIQUE DEVELOPMENT OPPORTUNITY! SUBJECT Property isconfirmed located within the brand new TOC designated qualified TIER-3zone for a 70% DENSITY BONUS AWARD, yielding 41 residential units(10% of units Extremely low income) allowing for several on menuincentives to make this investment a monumental success! HUGEINCOME PRODUCING "UNENTITLED" lot Zoned R4-2. NO HEIGHTLIMIT! Excellent prime Koreatown adjacent location, walking distance toMcArthur Park, transportation and over 30,000 SQFT OF brand newCOMMERCIAL RETAIL AMENITIES. Alternatively, a 23 unit, high endcondo project can be built on this site to take advantage of the currenthigh prices and demand for brand new condos. Immediate pocket area isundergoing massive gentrification with a minimum of 750 brand newapartment and condo units under construction. This is an excellentopportunity for a developer to Buy, Entitle and build a first class multifamilybuilding and take advantage of the BOOMING submarkets aroundKoreatown and the Metro stations.(SEE ATTACHMENTS. Please email listing agent for further details anddocuments from planning and HCID)
ADDRESS:2823 LEEWARD AVE
LA, CA 90005
SALES PRICE: $2,300,000
APN: 5077015014
UNITS: 41 Apartments (Proposed)
PRICE PER DOOR: $56,100
LOT SIZE:9,513 Sqft (Per City
Records)
BUILDING SIZE: 7,136 SF (Existing)
ZONING: R4-2 (No Height Limit)
MARKET:Westlake,
Ktown Adjacent
CROSS STREETS:3 Blocks South Of Wilshire
Blvd At Hoover Str.
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PROPERTY OVERVIEWSubject property is located within TIER 3 of the TransitOriented Communities Affordable Housing IncentiveProgram (TOC Program, ratified and due for effective datemid September 2017) requiring the establishment ofincentives for residential or mixed-use projects locatedwithin ½ mile of a major transit stops. The strategic locationof subject property allows for an increase in DENSITYBONUS TO 70% of base unit count, yielding 41 units total.Additional lucrative incentives are offered within this new
measure, making this opportunity truly unique. Not manyproperties lie within these 'special zones' nor offer suchsuperb locations with large lot sizes, perfect for a mid sizedevelopment.
LOCATION OVERVIEWJust South of Wilshire Blvd and Just West of Hoover Street;immediately adjacent to KoreaTown.0.7 Miles to Major Metro Station at Alvarado and Wilshire.2.5 Miles from USC3 Blocks to Wilshire Boulevard Business Center.1.5 Miles from Staples CenterImmediate access to TWO METRO STATIONS, at Alvaradoand Wilshire, or Vermont and Wilshire.
SUPREME DEVELOPMENT OPPORTUNITYInvestors can take advantage of an incredibly low effectiveprice per unit count of $56,100/DOOR for the proposeddevelopment, and earn a decent income from the existingrents during the entitlement process. Currently there are 4units on the property. Rent Roll provided upon request.
Property Description
2823 LEEWARD AVENUE |
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2823 Leeward Avenue List of Units
UNIT NUMBER TOTAL UNITS OF THIS TYPE IN BUILDING
UNIT MIX APPROX UINIT SIZE
MARKET RENT TOTAL RENT PER MONTH
101 4 2 BED, 2BATH 850 $2850-$3100 $12,400.00
102 5 1 BED, 1 BATH 550 $1950-$2250 $10,750.00
103 5 1 BED, 1 BATH 550 $1950-$2250 $10,750.00
104 5 1 BED, 1 BATH 550 $1950-$2250 $10,750.00
105 5 1 BED, 1 BATH 550 $1950-$2250 $10,750.00
106 5 1 BED, 1 BATH 550 $1950-$2250 $10,750.00
107 5 1 BED, 1 BATH 550 $1950-$2250 $10,750.00
108 2 1 BED, 1 BATH 550 $1950-$2250 $4,300.00
LOW INCOME UNITS:
1 2 BED, 2BATH 850 $850.00 $850.00
3 1 BED, 1 BATH 550 $675.00 $2,025.00
TOTALS 40 28,700 sqft $84,075.00
TOTAL ANNUAL RENTS
$1,008,900.00
PARKING: 41 spaces on 2 levels.
NOTE: There are a total of 40 units allowed to be built in this project. of the 40 units, 4 units are dedicated to Affordable Housing (Extremely low income). Since this property only has plans on it and is not completed yet the square footages are proposed and not yet submitted to the city of Los Angeles, but they are expected to meet with approval from the city of Los Angeles Planning Department.
NOTE: The total proposed square footage for the residential portion of this project is 28,700 sqft.
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Complete Highlights
2823 LEEWARD AVENUE |
PROPERTY HIGHLIGHTS
• Lot size is 9,513 SQFT per City records. APPROXIMATELot dimensions are 60' X 155'
• Existing Improvements are a 4 unit property (per cityrecords) and 5 Tenants in place. Huge existing buildingwith very large units. 100% occupied.
• Density Bonus calculations yield 41 units total, with 5 unitsgoing towards Extremely Low Income Affordable Housing.Conversely, 40 units can be built with only 4 Affordableunits.
• "By Right" potential to build 23 Condos or Apartment unitswith larger unit sizes.
• T.O.C. Incentive program allows for a MUCH HIGHER FAR,SUBSTANTIALLY REDUCED PARKING REQUIREMENTS,ADDITIONAL HEIGHT AND NUMBER OF STORIES, AND ASIZABLE CONCESSIONs ON SIDE YARDREQUIREMENTS and a few other bonuses and incentivesthat really make this a great opportunity.
• Area rents are approximately $1,950-$2,150 for 1bedrooms and approximately $1,500-$1700 for Studios,for Brand new construction.
• RTI Entitled lots are selling currently for approximately$100,000 per buildable unit.
• Area currently gentrifying rapidly, with over 750 brand newunits win mixed use commercial buildings AND BRANDNEW RETAIL AMENITIES coming online within immediatewalking distance of the subject property.
• FOR FURTHER DETAILS CONTACT
• TANNAZ RAHBAR, KELLER WILLIAMS REALTY,BRENTWOOD 310-995-7545TANNAZRAHBAR@KWCOM
• ******The renderings in this document are NOT actual****
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* Demographic data derived from 2010 US Census
Demographics Map
2823 LEEWARD AVENUE |
ETHNICITY 0.25 MILES 0.5 MILES 1 MILE
% HISPANIC 71.0% 67.0% 66.6%
RACE 0.25 MILES 0.5 MILES 1 MILE
% WHITE 34.4% 32.9% 33.2%
% BLACK 3.6% 4.0% 4.6%
% ASIAN 19.0% 23.5% 22.9%
% HAWAIIAN 1.2% 1.0% 0.3%
% INDIAN 1.1% 1.0% 1.1%
% OTHER 40.0% 36.7% 36.8%
POPULATION 0.25 MILES 0.5 MILES 1 MILE
TOTAL POPULATION 8,357 34,283 125,652
MEDIAN AGE 32.1 32.5 32.6
MEDIAN AGE (MALE) 32.0 32.3 32.2
MEDIAN AGE (FEMALE) 32.3 33.0 33.4
HOUSEHOLDS & INCOME 0.25 MILES 0.5 MILES 1 MILE
TOTAL HOUSEHOLDS 3,059 12,662 44,260
# OF PERSONS PER HH 2.7 2.7 2.8
AVERAGE HH INCOME $35,597 $36,976 $38,233
AVERAGE HOUSE VALUE $382,031 $385,009
TRANSIT ORIENTED COMMUNITIES BACKGROUND & FREQUENTLY ASKED QUESTIONS – March 13, 2017
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Transit Oriented Communities Affordable Housing Incentive Program (TOC Program) Background On November 8, 2017, Angelenos voted overwhelmingly in support of Measure JJJ. The Measure instituted new labor and affordable housing requirements for projects that receive certain planning entitlements – namely, general plan amendments or zone changes. In exchange, developers are required to designate a percentage of either condos or apartment units for low-income tenants. Section 6 of the Measure instructed the Department of City Planning (Department) to create the Transit Oriented Communities Affordable Housing Incentive (TOC) Program, a new transit-based affordable housing incentive program. The measure requires that the Department establish incentives for residential or mixed-use projects located within ½ mile of a major transit stop. Major transit stops are defined under existing State law, and the proposed guidelines link to this definition. The TOC program incentives would be applicable to a qualified development seeking to provide at least 38% more affordable housing than is currently required under the City’s existing density bonus program. Measure JJJ provided the Department 90 days from City Council adoption (December 13, 2016) to publish the TOC Guidelines that list the incentives, eligibility standards and other necessary components of the TOC Program. The proposed guidelines were released on March 13, 2017, meeting this requirement. The guidelines will be available for public review and comment, prior to the City Planning Commission’s (CPC) consideration, which is tentatively scheduled for May 11th. The CPC recommendation on this item will be sent to the Director of Planning, who will then issue the final guideline document. What are the Objectives of the TOC Program? The primary objective of the TOC program is to facilitate the development of mixed-income and affordable housing in transit areas. Because Measure JJJ requires a higher percentage of dedicated low income units than the City’s existing Density Bonus program, the measure recognizes that additional development incentives are needed to make this additional amount of affordable housing feasible. The proposed TOC incentives also align with the City’s General Plan policies to encourage housing around transit-rich centers as a way to grown sustainably, advance housing affordability and maximize the region’s investment in transit infrastructure.
What Projects Are Eligible for the TOC program? Measure JJJ states that the following housing and mixed-use developments are able to take advantage of the TOC incentives:
A project must include at least 5 or more residential units. A project must be located within a 1/2 mile of a major transit stop (an existing rail transit station,
a rail transit station that is under construction, or the intersection of two or more bus routes with peak service levels of 15 minutes or less).
A project must provide on-site affordable housing at one of the following percentages, applied to the total project: at least 7% extremely low income, 11% very low income or 20% low income.
Replace on a one-to-one basis any units subject to the Rent Stabilization Ordinance or occupied by lower income households that are lost on the site due to demolition or conversion.
What Incentives Must Be Provided? Measure JJJ instructs the Department of City Planning to develop the incentives offered to TOC projects, and also requires they be consistent with the following:
Provide a residential density (and/or floor area ratio) increase of 35% or more. Establish parking requirements consistent with AB 744 (2015).
TRANSIT ORIENTED COMMUNITIES BACKGROUND & FREQUENTLY ASKED QUESTIONS – March 13, 2017
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Include additional 2-3 incentives or concessions consistent with state density bonus law. Create an additional incentive for projects that meet labor standards.
What Approach Did the Department Take in Creating this Program? The TOC program establishes a tier-based system with varying development bonuses and incentives based on a project’s distance from different types of transit. The largest bonuses are reserved for those areas in the closest proximity to significant rail stops or the intersection of major bus rapid transit lines. Required affordability levels are increased incrementally in each higher tier. The program includes lower bonuses for properties that have been planned for lower intensity growth or are already located in existing neighborhood-level specific plans. In order to facilitate the development of 100% affordable housing developments, they will be eligible to increase one tier. How Much of the City Will Be Impacted by the TOC Program? Approximately 22% of the City’s zoned land falls within ½ mile of a major transit stop. However, since much of this land is zoned for low density residential (i.e. R1, R2 or RA zones) or uses that do not permit housing to be built (P, PF or M zones), the amount of developable land subject to the TOC Program is reduced to approximately 10%. In addition, more than three-quarters of the impacted land is located in the lower tiers 1 and 2. What is the Relationship of the TOC program to the existing Density Bonus program? While the TOC Program is designed to mirror the structures and procedures of the density bonus program, projects may not utilize the City’s existing density bonus program or any other development bonus program if they elect to utilize the TOC program. Similar to the Density Bonus program, the TOC program establishes a set of limited base incentives that do not require project-level City Planning approval and a menu of additional incentives obtained through a discretionary City Planning review process. Can a Local Area Plan Adopted by Ordinance Supersede the TOC provisions? Yes. Ordinances can supersede the TOC for a specific transit area. These can include Community Plan Implementation Overlay (CPIO) zones or Specific Plans that establish incentives to achieve the equivalent level of affordable units identified by Measure JJJ. If a TOC area includes a separate plan or zoning ordinance that offers a different bonus system that either does not match or exceed the affordability levels established in the TOC, an applicant would need to choose which of the two density incentive programs to use, if any.
What Protections are in Place to Protect Historic Properties and to Ensure Quality Design? The TOC Guidelines do not supersede existing regulations for historic properties in Los Angeles (such as Historic Preservation Overlay Zones and Historic-Cultural Monuments). Projects that seek additional incentives under the TOC program will be subject to design guidelines review that will allow for design review conditions to be placed on projects. When Will the TOC Program Expire? The program will terminate in 10 years unless extended for an additional five years by the City Council. If you have any questions or comments, please send them directly to Matthew Glesne at [email protected] or (213)978-2666. Comments submitted prior to the end of the day on April 13th will be considered for the staff recommendation report. Comments submitted after this time should also be directed to the City Planning Commission ([email protected]).