offering memorandum (l) · 2017. 9. 20. · rent roll 18 sales comparables sale comps 20 sale comps...

O F F E R I N G M E M O R A N D U M

ORON [email protected]

SperryCGA - BRC Advisors / / 700 SOUTH FLOWER STREET, SUITE 2650, LOS ANGELES, CA 90017 // SPERRYCRE.COM

CONFIDENTIALITY & DISCLAIMER

1 2 7 5 7 M A T T E S O N A V E L O S A N G E L E S , C A 9 0 0 6 6

CONFIDENTIALITY & DISCLAIMER // 2SperryCGA - BRC Advisors / / 700 SOUTH FLOWER STREET, SUITE 2650, LOS ANGELES, CA 90017 // SPERRYCRE.COM

BRC Advisors operates a commercial real estate business and is an affiliate or franchisee ("Affiliate") of BRC Advisors Global Affiliates, LLC ("SperryCGA"). BRC Advisors is independently owned andoperated. BRC Advisors and the owner ("Owner") of the property referenced herein ("Property") present this Confidential Offering Memorandum ("Memorandum") to assist the recipient(s) ("You" or"Your") in evaluating the Property and it is intended solely for Your limited use in determining whether you desire to acquire the Property. This Memorandum contains brief, selected informationpertaining to the Property and should not be considered all-inclusive or permanent. The information in this Memorandum has been obtained from sources believed to be reliable, but BRC Advisorsand SperryCGA have not verified it and Owner, BRC Advisors and SperryCGA do not make any guaranty, warranty or representation, express or implied, as to the accuracy or completeness of thisMemorandum or the information contained herein.

You should independently verify each item of information in this Memorandum and have the same reviewed by your tax or investment advisor and/or legal counsel. This Memorandum and anycommunications You may have with BRC Advisors, SperryCGA and/or Owner and their respective officers, brokers, agents or employees regarding this Memorandum or the Property does not in anyway constitute any legal, investment or tax advice to You. All assumptions, projections, estimates and/or opinions in this Memorandum are provided as examples only and all information is subject tochange, error, omissions and/or withdrawal without notice. Any references in the Memorandum to area, height, acreage, building or premises size or square footage are approximations only andshould be independently verified by You. Any references in the Memorandum to any lease or tenant information, including without limitation the premises, rental rates, rent escalations, commonarea expenses, percentage rents and lease maturities should be independently verified by You. You should conduct your own investigations and due diligence of the Property, including withoutlimitation environmental and physical condition inspections and reach your own conclusions regarding the suitability of the Property for investment.

BRC Advisors, SperryCGA and Owner assume no responsibility for the accuracy or completeness of any information in this Memorandum. BRC Advisors and Owner expressly disclaim any implied orexpressed warranties of merchantability, fitness for a particular purpose or non-infringement of intellectual property relating to this Memorandum. In no event shall BRC Advisors, SperryCGA orOwner be liable for any damages resulting from the reliance on or use of any information in this Memorandum, including but not limited to direct, special, indirect, consequential or incidentaldamages.

By accepting receipt of this Memorandum, You agree to the following: (a) This Memorandum is of a highly confidential nature, will be held in the strictest confidence and shall be returned to BRCAdvisors upon request; (b) You shall not contact any property manager, contractor, employee or tenant of the Property regarding the Property or this Memorandum, without prior approval of BRCAdvisors or Owner; and (c) You understand and agree that BRC Advisors represents Owner and not You and (iv) this Memorandum and this information contained therein shall not be used by You inany way that is detrimental to Owner, BRC Advisors or SperryCGA. Neither BRC Advisors, SperryCGA nor Owner shall have any obligation to pay any commission, finder's fee, or any othercompensation to any broker or other person. You may provide information to persons retained by You to evaluate the Property only after first obtaining a signed confidentiality agreement from suchpersons and providing a copy of such agreement to BRC Advisors.

The Owner expressly reserves the right, at its sole and absolute discretion, to reject any or all expressions of interest or offers to Purchase or Lease the Property, and/or to terminate discussion withYou or any other person or entity at any time with or without notice which may arise as a result of review of the Memorandum.

The Owner shall have no legal commitment or obligation to You or any person or entity reviewing this Memorandum or making an offer to purchase, lease, or finance the Property unless and untilwritten agreement(s) for the purchase or finance of the Property that are satisfactory to Owner in its sole and absolute discretion have been fully executed, delivered and approved by the Owner andany conditions to the Owner's obligations therein have been satisfied or waived.

TABLE OF CONTENTS


TABLE OF CONTENTS // 3SperryCGA - BRC Advisors / / 700 SOUTH FLOWER STREET, SUITE 2650, LOS ANGELES, CA 90017 // SPERRYCRE.COM

PROPERTY INFORMATION5Executive Summary6Property Description7Property Details8Complete Highlights9Additional Photos

LOCATION INFORMATION13Regional Map14Location Maps15Aerial Map

FINANCIAL ANALYSIS16Financial Summary17Income & Expenses18Rent Roll

SALES COMPARABLES20Sale Comps23Sale Comps Summary24Sale Comps Map

RENT COMPARABLES26Rent Comps28Rent Comps Summary29Rent Comps Map

DEMOGRAPHICS31Demographics Report32Demographics Map


SECTION 1 // 4SperryCGA - BRC Advisors / / 700 SOUTH FLOWER STREET, SUITE 2650, LOS ANGELES, CA 90017 // SPERRYCRE.COM

SECTION 1 P R O P E R T Y I N F O R M A T I O N

P R I M E M A R V I S T A H O U S E W I T H F O U R 2 / 1 ' S I N R E A R - 2 V A C A N T U N I T S 1 2 7 5 7 M A T T E S O N A V E , L O S A N G E L E S , C A 9 0 0 6 6

EXECUTIVE SUMMARY / / 5SperryCGA - BRC Advisors / / 700 SOUTH FLOWER STREET, SUITE 2650, LOS ANGELES, CA 90017 // SPERRYCRE.COM

PROPERTY OVERVIEW

Perfect for an owner-user or investor, with over 32% upside in rents, 12757 Matteson Ave consists of two buildings with five total units. In front is a 4-bed/2-bath house with tandem parking for 2 cars, accessed from Matteson Ave. The rear building features four 2-bed/1-bath units and four parking spaces, accessed from the alley. Two units in the rear building will be delivered vacant at the close of escrow, both of which have been immaculately remodeled. The two buildings are separated by a courtyard with a BBQ area and separate seating area. An owner can add a partition to the front house to create privacy from the back units. Many units have updates but there is opportunity to rehab the front house or add a second story to add tremendous upside in rents.

The property is zoned R3, so a second story can maybe potentially be added to the front house per zoning (seller makes no warranty).

PROPERTY HIGHLIGHTS

• Five total units, two buildings

• Two units delivered vacant at COE, both of which has been immaculately remodeled

• Located in the heart of Mar Vista, just east of Venice Beach

• Close to the trendy shopping and restaurants of Venice Blvd, Abbot Kinney, Venice Beach, and Silicon

Beach

• Opportunity to rehab, add-on, and add additional income/value

• Perfect for owner-user or investor

• Detached 4BD 2BA Single Family Residence with private yard perfect for owner user

• Approximately 32% upside in rents

PROPERTY SUMMARY

Sale Price: $2,800,000

Number Of Units: 5

Cap Rate: 3.97%

NOI: $111,128

Lot Size: 0.16 Acres

Building Size: 3,844 SF

Year Built: 1962

Zoning: LAR3

Market: Mar Vista

Cross Streets: Matteson Ave & Wade St

EXECUTIVE SUMMARY

LOCATION DESCRIPTION

12757 Matteson is well located near the creative and tech hubs of Venice and Playa Vista, Venice Beach,Abbot Kinney, LAX, and the 405 freeway.

The subject property is close to "Silicon Beach" -- one of the top three tech hubs in the world -- whichhouses the headquarters of Snapchat, Google, Apple (coming soon), YouTube, Yahoo!, Salesforce, AOL,Electronic Arts, and Hulu, to name a few.

Also nearby is Abbot Kinney, one of the trendiest retail corridors in LA featuring high-end shopping(Burro, Warby Parker, Aesop, Bazar, Gant ) and popular restaurants (Gjelina, The Tasting Table, The Brig,Hal's Bar & Grill, Salt & Straw), galleries (De Soto Gallery, G2 Gallery, Hamilton Press Gallery) and more.World famous Venice Beach is directly down the road to the west. A popular destination for locals andtourists, the subject property's location is sure to be attractive to potential renters and in high demand.Popular Venice Beach locales include the boardwalk, Muscle Beach, handball courts, basketball courts,paddle tennis courts, Skate Dancing plaza, beach volleyball courts, and the bike path.

12757 Matteson Ave is situated in the heart of the Mar Vista "micro-hood" on Venice Blvd. The"micro-hood" features plenty of window shopping, eateries, and the weekly Mar Vista Farmers Market.Joining neighborhood staples like Sam Johnson's bookshop, Mitsuwa Market, and Bowlero Mar Vista arenew popular restaurants (The Mar Vista, Status Kuo, Earl's Gourmet Grub, Venice Grind Coffee) and newretail shops (Surfing Cowboys, Bikerowave, Vintage) putting the subject property in the perfect locationfor L.A.'s next hot neighborhood.

ZONING

LAR3

PROPERTY DESCRIPTION


PROPERTY DESCRIPTION / / 6SperryCGA - BRC Advisors / / 700 SOUTH FLOWER STREET, SUITE 2650, LOS ANGELES, CA 90017 // SPERRYCRE.COM

PROPERTY DETAILS

PROPERTY ADDRESS: 12757 Matteson AveLos Angeles, CA 90066

APN: 4236-017-021

LOT SIZE: 7,101 SF

BUILDING SIZE: 3,844 SF

ZONING: LAR3

PARKING SPACES: 6

YEAR BUILT: 1962

NUMBER OF UNITS: 5



COMPLETE HIGHLIGHTS

PROPERTY HIGHLIGHTS

• Five total units, two buildings

• Two units delivered vacant at COE, both of which has beenimmaculately remodeled

• Located in the heart of Mar Vista, just east of Venice Beach

• Close to the trendy shopping and restaurants of VeniceBlvd, Abbot Kinney, Venice Beach, and Silicon Beach

• Opportunity to rehab, add-on, and add additional income/value

• Perfect for owner-user or investor

• Detached 4BD 2BA Single Family Residence with privateyard perfect for owner user

• Approximately 32% upside in rents


COMPLETE HIGHLIGHTS / / 8SperryCGA - BRC Advisors / / 700 SOUTH FLOWER STREET, SUITE 2650, LOS ANGELES, CA 90017 // SPERRYCRE.COM

PHOTOS OF HOUSE



The 4-bed/2-bath 1,028+ SQ FT front house offers many possibilitiesfor an owner-user or investor. The unit currently rents for$3,656 but has a pro forma potential of $6,500/month.The R3 zoning potentially allows for a second story and additional square footage, or conversion to new multi-family 4-Plex in the front.

House could be easily partitioned from the rear units by adding a hedge and/or fencing to create private rear yard/patio behind the house, enjoying both privacy and income from the rear units. Front house has all parking & entry from Matteson Ave, rear 4-Plex has all parking & entry from the alley.

VACANT UNIT PHOTOS


ADDITIONAL PHOTOS / / 10SperryCGA - BRC Advisors / / 700 SOUTH FLOWER STREET, SUITE 2650, LOS ANGELES, CA 90017 // SPERRYCRE.COM

• Vacant unit in rear building• Immaculately remodeled• Market rent: $2,995

UPPER UNIT PHOTOS


ADDITIONAL PHOTOS / / 11SperryCGA - BRC Advisors / / 700 SOUTH FLOWER STREET, SUITE 2650, LOS ANGELES, CA 90017 // SPERRYCRE.COM



SECTION 1 L O C A T I O N I N F O R M A T I O N


SECTION 2 / / 13SperryCGA - BRC Advisors / / 700 SOUTH FLOWER STREET, SUITE 2650, LOS ANGELES, CA 90017 // SPERRYCRE.COM

12757 Matteson Ave

REGIONAL MAP

LOCATION MAPS





AERIAL MAP



SECTION 3 F I N A N C I A L A N A L Y S I S

FINANCIAL SUMMARY



INVESTMENT OVERVIEW CURRENT PRO FORMA

Price $2,800,000 $2,800,000Price per Unit $560,000 $560,000GRM 18.5 12.63CAP Rate 4.0% 7.92%Cash-on-Cash Return (yr 1) 3.97 % 7.92%Total Return (yr 1) $111,128 $221,760Debt Coverage Ratio -

OPERATING DATA CURRENT PRO FORMA

Gross Annual Scheduled Income $151,704 $221,760Other Income - -Total Scheduled Income $151,704 $221,760Vacancy Cost $0 $0Gross Annual Income $151,704 $221,760Operating Expenses $40,576 $40,576Net Operating Income $111,128 $181,184Pre-Tax Cash Flow $111,128 $181,184

*This information has been obtained from sources we believe to be reliable. While Sperry Commercial Global Affiliates – BRC Advisors does not doubt its accuracy, we make no representations or warranties, expressed or implied about it. It is your responsibility toindependently confirm its accuracy and completeness.

INCOME & EXPENSES



INCOME SUMMARY CURRENT MONTHLY PER SF / YEAR PRO FORMA MONTHLY PER SF / YEAR

GROSS INCOME $151,704 $12,642 $39.47 $221,760 $18,480 $57.69

EXPENSE SUMMARY CURRENT MONTHLY PER SF / YEAR PRO FORMA MONTHLY PER SF / YEAR

TAXES $32,480 $2,706 $8.45 $32,480 $2,706 $8.45INSURANCE $1,598 $133 $0.42 $1,598 $133 $0.42WATER $3,172 $264 $0.83 $914 $76 $0.24GAS $914 $76 $0.24 $972 $81 $0.25GARDENER $1,440 $120 $0.37 $1,440 $120 $0.37TRASH $972 $81 $0.25 $3,172 $264 $0.83

GROSS EXPENSES $40,576 $3,381

$28.91

$40,576 $3,381 $10.56

NET OPERATING INCOME $111,128 $9,260 $181,184 $15,098 $47.13


$10.56

RENT ROLL



TENANTNAME

UNITNUMBER

UNITBED

UNITBATH

UNITSIZE (SF)

CURRENTRENT

MARKETRENT

House 4 2 1,028 $3,656 $6,500

1 2 1 704 $2,995* (Vacant) $2,995

2 2 1 704 $1,547 $2,995

3 2 1 704 $2,995* (Vacant) $2,995

4 2 1 704 $1,448 $2,995

Totals/Averages 5 12 6 3,844 $6,652 $18,480


*These units are currently vacant; both of which have been immaculately remodeled. Pro forma market rent for these units is $2,995.

*Two Vacant Units



SECTION 4 S A L E S C O M P A R A B L E S

SALE COMPS



SUBJECT PROPERTY

12757 Matteson Ave | Los Angeles, CA 90066

$2,800,000Sale Price:

1962Year Built:

3,844 SFBuilding SF:

$728.41Price PSF:

5No. Units:

$560,000Price / Unit:

18.46GRM:

3.97%Cap:

$111,128NOI:

3792 Ashwood Ave | Los Angeles, CA 90066


1949Year Built:


$586.23Price PSF:

7No. Units

$209,285Price / Unit

3.5%CAP:

09/22/2016Closed:

16.8GRM:

$58,809NOI:

1

3745 S Centinela Ave | Los Angeles, CA 90066


1959Year Built:


$387.13Price PSF:

5No. Units


3.46%CAP:

08/15/2017Closed:

18.25GRM:

$62,215NOI:

23605 Beethoven St | Los Angeles, CA 90066


1985Year Built:


$586.16Price PSF:

4No. Units


3.3%CAP:

06/13/2017Closed:

18.6GRM:

$61,606NOI:

3


SALE COMPS



12734 Caswell Ave | Los Angeles, CA 90066


1962Year Built:


$361.84Price PSF:

9No. Units


01/03/2017Closed:

16GRM:

$99,727NOI:

44041 Wade St | Los Angeles, CA 90066


1938Year Built:


$430.26Price PSF:

5No. Units


2.08%CAP:

07/17/2016Closed:

23.93GRM:

$62,636NOI:

5

11825 Culver Blvd | Los Angeles, CA 90066


1953Year Built:


$815.10Price PSF:

3No. Units


5.05%CAP:

08/24/2017Closed:

14.87GRM:

$75,763NOI:

63794 Meier St | Los Angeles, CA 90066


1948Year Built:


$944.55Price PSF:

2No. Units


08/05/2016Closed:

18GRM:

$41,220NOI:

7


SALE COMPS



3837 Beethoven St | Los Angeles, CA 90066


1962Year Built:


$829.63Price PSF:

3No. Units


04/13/2016Closed:

8


SALE COMPS SUMMARY

SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS

12757 Matteson AveLos Angeles, CA90066

$2,800,000 3,844 SF $728.41 $560,000 3.97% 18.46 5

SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE

13792 Ashwood AveLos Angeles, CA90066

$1,465,000 2,499 SF $586.23 $209,285 3.5% 16.8 7 09/22/2016

23745 S Centinela AveLos Angeles, CA90066

$1,763,000 4,554 SF $387.13 $352,600 3.46% 18.25 5 08/15/2017

33605 Beethoven StLos Angeles, CA90066

$1,915,000 3,267 SF $586.16 $478,750 3.3% 18.6 4 06/13/2017

412734 Caswell AveLos Angeles, CA90066

$2,450,000 6,771 SF $361.84 $272,222 - 16 9 01/03/2017

54041 Wade StLos Angeles, CA90066

$3,085,000 7,170 SF $430.26 $617,000 2.08% 23.93 5 07/17/2016

611825 Culver BlvdLos Angeles, CA90066

$1,490,000 1,828 SF $815.10 $496,666 5.05% 14.87 3 08/24/2017

73794 Meier StLos Angeles, CA90066

$1,005,000 1,064 SF $944.55 $502,500 - 18 2 08/05/2016

83837 Beethoven StLos Angeles, CA90066

$1,075,200 1,296 SF $829.63 $358,400 - - 3 04/13/2016

TOTALS/AVERAGES $1,781,025 3,556 SF $500.85 $374,952 3.48% 18.06 4.75




SALE COMPS MAP



12757 Matteson Ave | Los Angeles, CA 90066SUBJECT PROPERTY

1

3792 Ashwood AveLos Angeles, CA 90066

2

3745 S Centinela AveLos Angeles, CA 90066

3

3605 Beethoven StLos Angeles, CA 90066

4

12734 Caswell AveLos Angeles, CA 90066

5

4041 Wade StLos Angeles, CA 90066

6

11825 Culver BlvdLos Angeles, CA 90066

7

3794 Meier StLos Angeles, CA 90066

8

3837 Beethoven StLos Angeles, CA 90066




SECTION 5 R E N T C O M P A R A B L E S

RENT COMPS



SUBJECT PROPERTY

Los Angeles, CA 9006612757 Matteson Ave

1962Year Built: 0.16 ACLot Size:

5No. Units: $1.73Avg. Rent/SF:

$1,330Avg. Rent: 768 SFAvg. Size:

UNIT TYPE # UNITS % OF SIZE SF RENT RENT/SF

4 br / 2 ba 1 20.0 1,028 $3,656 $3.56

2 br / 1 ba 4 80.0 704 $749 $1.06Liquid error: no implicit conversion from nil to integer

TOTAL/AVG 5 100% 768 $1,330 $1.73

Los Angeles, CA 900664040 Grand View Blvd

850 SFBldg Size:

UNIT TYPE SIZE SF RENT RENT/SF

2+1.5 850 $2,950 $3.47Liquid error: no implicit conversion from nil to integer

1

1

Los Angeles, CA 9006612506 Pacific Ave

0 SFBldg Size:

UNIT TYPE RENT

2+2 $2,995Liquid error: no implicit conversion from nil to integer

2

2


RENT COMPS



Los Angeles, CA 90066Beethoven St at Matteson St

1,050 SFBldg Size:


2+1 1,050 $3,395 $3.23Liquid error: no implicit conversion from nil to integer

3

3

Los Angeles, CA 90066Lamanda St at Inglewood Blvd

1,100 SFBldg Size:


2+1 1,100 $2,895 $2.63Liquid error: no implicit conversion from nil to integer

4

4


RENT COMPS SUMMARY



RENT COMPS RENT/SF AVAILABLE SF BLDG SF # OF UNITS OCCUPANCY %

14040 Grand View BlvdLos Angeles, CA90066

- 0 SF 850 SF - -

212506 Pacific AveLos Angeles, CA90066

- 0 SF 0 SF - -

3Beethoven St at Matteson StLos Angeles, CA90066

- 0 SF 1,050 SF - -

4Lamanda St at Inglewood BlvdLos Angeles, CA90066

- 0 SF 1,100 SF - -

TOTALS/AVERAGES $0.00 0 SF 1,000 SF 0 0%

SUBJECT PROPERTY RENT/SF AVAILABLE SF BLDG SF # OF UNITS OCCUPANCY %

12757 Matteson AveLos Angeles, CA 90066

$1.73 0 SF 3,844 SF 5 -


RENT COMPS MAP



12757 Matteson Ave | Los Angeles, CA 90066SUBJECT PROPERTY

1 4040 Grand View BlvdLos Angeles, CA 90066

2 12506 Pacific AveLos Angeles, CA 90066

3 Beethoven St at Matteson StLos Angeles, CA 90066

4 Lamanda St at Inglewood BlvdLos Angeles, CA 90066




SECTION 6 D E M O G R A P H I C S

DEMOGRAPHICS REPORT



0.25 MILES 0.5 MILES 1 MILE

Total households 2,021 5,339 16,961

Total persons per hh 2.1 2.2 2.2

Average hh income $60,366 $76,265 $92,959

Average house value $792,571 $774,043 $778,047

0.25 MILES 0.5 MILES 1 MILE

Total population 4,251 11,506 36,815

Median age 34.1 35.7 38.0

Median age (male) 36.0 35.8 37.8

Median age (female) 33.0 36.1 38.5

* Demographic data derived from 2010 US Census



* Demographic data derived from 2010 US Census

0.25 Miles 0.5 Miles 1 Mile

Total Population 4,251 11,506 36,815

Population Density 21,650 14,650 11,719

Median Age 34.1 35.7 38.0

Median Age (Male) 36.0 35.8 37.8

Median Age (Female) 33.0 36.1 38.5

Total Households 2,021 5,339 16,961

# of Persons Per HH 2.1 2.2 2.2

Average HH Income $60,366 $76,265 $92,959

Average House Value $792,571 $774,043 $778,047

DEMOGRAPHICS MAP

offering memorandum (l) · 2017. 9. 20. · rent roll 18 sales comparables sale comps 20 sale comps...

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