offering memorandum...name is not intended to indicate or imply affiliation with, or sponsorship or...

11905 AVON WAY11905 Avon Way • Los Angeles, CA 90066

Offering Memorandum

1

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. © 2018 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.

11905 AVON WAY

Los Angeles, CA

ACT ID Z0121260

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02

Rent Roll Summary

Rent Roll Detail

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03

Sales Comparables

Rent Comparables

11905 AVON WAY

3

11905 AVON WAY

4

INVESTMENT

OVERVIEW

11905 AVON WAY

#

EXECUTIVE SUMMARY

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

Freeze Operations Holding Corp 5,007

Greater Los Angeles Health 5,000

Taskus Inc 5,000

Team One 5,000

Earth Technology Corp USA 4,655

Gold Parent LP 3,400

Sony Pictures Studios 3,040

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 42,192 271,879 691,199

2010 Census Pop 40,384 256,794 655,548

2017 Estimate HH 16,889 124,182 311,570

2010 Census HH 16,014 115,951 292,325

Median HH Income $57,519 $74,895 $68,616

Per Capita Income $35,607 $52,863 $49,001

Average HH Income $88,495 $114,916 $108,033

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

1 Single

9 1+1

10 Total 6,776

VITAL DATA

Price $3,500,000 CURRENT PROFORMA

Loan Type All Cash CAP Rate 5.57% 5.57%

Price/Unit $350,000 GRM 12.09 12.09

Price/SF $516.53Net Operating Income

$194,983 $194,983

Number of Units 10Net Cash Flow After Debt Service

5.57% / $194,983 5.57% / $194,983

Rentable Square Feet 6,776 Total Return 5.57% / $194,983 5.57% / $194,983

Year Built / Renovated 1987 / 1987

Lot Size 0.19 acre(s)

5

11905 AVON WAY

OFFERING SUMMARY

▪ Excellent West Los Angeles Location (10 Units)

▪ Built in 1987 and Not Subject to Rent Control

▪ Nine Units to be Delivered Vacant (All Units will be Furnished)

▪ On-Site Laundry and Gated Parking (14 Covered Spaces)

▪ Rare Opportunity for an Investor to Continue Operating as Short Term Rentals

▪ Short Distance from Venice Beach, Santa Monica, Marina Del Rey, Downtown

Culver City

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present this 10-unit non rent controlled property located at 11905 Avon Way in the Culver Garden pocket of West Los Angeles. Built in

1987, the property consists of one Studio and nine One-Bedroom/One-Bathroom Units. The property currently has one tenant on a long term lease with the remaining

nine-units on short term nightly rentals (current nightly rates go from $99-$129 per night). An investor can choose to continue running the property as short term rentals or

request nine of the units to be delivered vacant with the opportunity to remodel and lease out. All 10 units are currently furnished and ownership will deliver the property

with all furniture.

Tenants are attracted to the property through a variety of amenities including spacious floor plans, gated parking, on-site laundry, intercom entry, and furnished units.

11905 Avon Way is situated between Culver and Washington Blvd in the Mar Vista/Culver Garden pocket of West Los Angeles. This incredible location is just a short drive

away from Venice Beach, Santa Monica, Marina Del Rey, and downtown Culver City. The property is also a highly desirable location of housing for the recent influx of

professionals working in close by Silicon Beach.

This is an excellent opportunity for a location driven value add investor to either continue running the property as short term nightly rents or create immediate upside by

implementing a renovation plan and significantly increase the rents.

INVESTMENT OVERVIEW

6

11905 AVON WAY

PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Type All Cash

Debt Coverage Ratio

THE OFFERING

Property 11905 Avon Way

Price $3,500,000

Property Address 11905 Avon Way, Los Angeles, CA

Assessor’s Parcel Number 4233-019-001

Zoning Lar3

SITE DESCRIPTION

Number of Units 10

Year Built/Renovated 1987

Rentable Square Feet 6,776

Lot Size 0.19 acre(s)

7

REGIONAL MAP

11905 AVON WAY

8

LOCAL MAP

11905 AVON WAY

9

AERIAL PHOTO

11905 AVON WAY

10

PROPERTY PHOTO

11905 AVON WAY

11

11905 AVON WAY

12

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

11905 AVON WAY

RENT ROLL SUMMARY

13

FINANCIAL ANALYSIS

11905 AVON WAY

14

RENT ROLL DETAIL

FINANCIAL ANALYSIS

11905 AVON WAY

OPERATING STATEMENT

15

FINANCIAL ANALYSIS

11905 AVON WAY

PRICING DETAIL

16

MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage

offices

$5.63 billion

total national

volume in 2017

Access to

more capital

sources than

any other firm

in the industry

Optimum financing solutions

to enhance value

Our ability to enhance

buyer pool by expanding

finance options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender

progress, insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,707

debt and equity

financings

in 2017

ACQUISITION FINANCING

11905 AVON WAY

17

11905 AVON WAY

18

MARKET

COMPARABLES

11905 AVON WAY

SALES COMPARABLES MAP

19

11905 AVON WAY

(SUBJECT)

12036 Culver Blvd

3501 Jasmine Ave

3353 Shelby Drive

3726 Midvale Avenue

10829 Palms Blvd

11910 Venice Blvd

11834 Avon Way

The Culver

11722 Avon Way

11852 Washington Place

SALES COMPARABLES

1

2

3

4

5

7

8

6

9

10

20

Avg. 3.20%

0.0

0.6

1.2

1.8

2.4

3.0

3.6

4.2

4.8

5.4

6.0

11905

Avon Way

12036

Culver Blvd

3501

Jasmine Ave

3353 Shelby

Drive

3726

Midvale

Avenue

10829

Palms Blvd

11910

Venice Blvd

11834

Avon Way

The Culver 11722

Avon Way

11852

Washington

Place

PROPERTY NAME11905 AVON WAY

SALES COMPARABLES

Average Cap Rate

SALES COMPARABLES SALES COMPS AVG

21

Avg. 18.91

0.00

2.30

4.60

6.90

9.20

11.50

13.80

16.10

18.40

20.70

23.00

11905

Avon Way

12036

Culver Blvd

3501

Jasmine Ave

3353 Shelby

Drive

3726

Midvale

Avenue

10829

Palms Blvd

11910

Venice Blvd

11834

Avon Way

The Culver 11722

Avon Way

11852

Washington

Place


SALES COMPARABLES

Average GRM


22

Avg. $460.23

$0.00

$70.00

$140.00

$210.00

$280.00

$350.00

$420.00

$490.00

$560.00

$630.00

$700.00

11905

Avon Way

12036

Culver Blvd

3501

Jasmine Ave

3353 Shelby

Drive

3726

Midvale

Avenue

10829

Palms Blvd

11910

Venice Blvd

11834

Avon Way

The Culver 11722

Avon Way

11852

Washington

Place


SALES COMPARABLES

Average Price Per Square Foot


23

Avg. $488,379

$0

$70,000

$140,000

$210,000

$280,000

$350,000

$420,000

$490,000

$560,000

$630,000

$700,000

11905

Avon Way

12036

Culver Blvd

3501

Jasmine Ave

3353 Shelby

Drive

3726

Midvale

Avenue

10829

Palms Blvd

11910

Venice Blvd

11834

Avon Way

The Culver 11722

Avon Way

11852

Washington

Place


SALES COMPARABLES

Average Price Per Unit


PROPERTY NAME

MARKETING TEAM

11905 AVON WAY

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


24

SALES COMPARABLES

Units Unit Type

Offering Price: $3,500,000 1 Single

Price/Unit: $350,000 9 1+1

Price/SF: $516.53

CAP Rate: 5.57%

GRM: 12.09

Total No. of Units: 10

Year Built: 1987

Underwriting Criteria

Income $280,778 Expenses $85,795

NOI $194,983 Vacancy ($8,622)

11905 AVON WAY11905 Avon Way, Los Angeles, CA, 90066

1

Units Unit Type

Close Of Escrow: 6/29/2018 2 1 Bdr 1 Bath

Sales Price: $4,800,000 2 2 Bdr 2 Bath

Price/Unit: $533,333 5 3 Bdr 2 Bath

Price/SF: $357.30

CAP Rate: 3.70%

GRM: 16.30


Year Built: 1989

12036 CULVER BLVD12036 Culver Blvd, Los Angeles, CA, 90066

Units Unit Type



Price/Unit: $463,889

Price/SF: $392.11

CAP Rate: 3.09%

GRM: 19.25


Year Built: 1987

2

3501 JASMINE AVE3501 Jasmine Ave, Los Angeles, CA, 90034

PROPERTY NAME

MARKETING TEAM

11905 AVON WAY

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


25

SALES COMPARABLES

Units Unit Type




Price/SF: $390.51

CAP Rate: 2.62%

GRM: 20.22


Year Built: 1984

3

3353 SHELBY DRIVE3353 Shelby Dr, Los Angeles, CA, 90034

4

Units Unit Type




Price/SF: $445.32

CAP Rate: 2.86%


Year Built: 1987

3726 MIDVALE AVENUE3726 Midvale Ave, Los Angeles, CA, 90034

Units Unit Type




Price/SF: $413.75

CAP Rate: 2.67%

GRM: 19.60


Year Built: 1987

5

10829 PALMS BLVD10829 Palms Blvd, Los Angeles, CA, 90034

PROPERTY NAME

MARKETING TEAM

11905 AVON WAY

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


26

SALES COMPARABLES

Units Unit Type


Sales Price: $2,980,000


Price/SF: $431.88

CAP Rate: 3.21%

GRM: 17.47


Year Built: 1984

6

11910 VENICE BLVD11910 Venice Blvd, Los Angeles, CA, 90066

7

Units Unit Type


Sales Price: $5,664,000


Price/SF: $617.67

CAP Rate: 3.41%

GRM: 21.50


Year Built: 1990


Units Unit Type

Close Of Escrow: 6/27/2018 13 Studio 1 Bath



Price/SF: $526.78

CAP Rate: 3.60%


Year Built: 2006

8

THE CULVER3325-3329 S Canfield Ave, Los Angeles, CA, 90034

PROPERTY NAME

MARKETING TEAM

11905 AVON WAY

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


27

SALES COMPARABLES

Units Unit Type



Price/SF: $590.38


Year Built: 1987

9


10

Units Unit Type




Price/SF: $436.60

CAP Rate: 3.64%

GRM: 18.00


Year Built: 1990

11852 WASHINGTON PLACE11852 Washington Pl, Los Angeles, CA, 90066

8

11905 AVON WAY

RENT COMPARABLES MAP

11905 AVON WAY

(SUBJECT)

3749 Mclaughlin Ave

Grandview Apartments

12449 Louise Ave

4307 Inglewood Blvd4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

1

2

3

28


RENT COMPARABLES

29

AVERAGE OCCUPANCY

Avg. 0.00%

0

10

20

29

39

49

59

69

78

88

98

11905

Avon Way

3749

Mclaughlin

Ave

Grandview

Apartments

12449

Louise Ave

4307

Inglewood

Blvd


RENT COMPARABLES

30

AVERAGE RENT - MULTIFAMILY

Avg. $2,355

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

11905

Avon Way

3749

Mclaughlin

Ave

Grandview

Apartments

12449

Louise Ave

4307

Inglewood

Blvd

1 Bedroom

Avg. $1,800

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

11905

Avon Way

3749

Mclaughlin

Ave

Grandview

Apartments

12449

Louise Ave

4307

Inglewood

Blvd

Studios

PROPERTY NAME

MARKETING TEAM

11905 AVON WAY

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


31

YEAR BUILT: 1987

rentpropertyname1


Unit Type Units SF Rent Rent/SF

Single 1 $1,900 $0.00

1+1 9 $2,450 $0.00

Total/Avg. 10 $2,395


YEAR BUILT: 1969

1


1 Bdr 1 Bath $2,250

Total/Avg. $2,250

3749 MCLAUGHLIN AVE3749 McLaughlin Ave, Los Angeles, CA, 90066

2

YEAR BUILT: 1959


Studio 1 Bath $1,800

1 Bdr 1 Bath $2,225

Total/Avg. $2,013

GRANDVIEW APARTMENTS4136-4140 Grand View Blvd, Los Angeles, CA, 90066

PROPERTY NAME

MARKETING TEAM

11905 AVON WAY

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


32

YEAR BUILT: 2009

3


1 Bdr 1 Bath $2,295

Total/Avg. $2,295

12449 LOUISE AVE12449 Louise Ave, Los Angeles, CA, 90066

YEAR BUILT: 1946

4


1 Bdr 1 Bath $2,650

Total/Avg. $2,650

4307 INGLEWOOD BLVD4307 Inglewood Blvd, Los Angeles, CA, 90066

offering memorandum...name is not intended to indicate or imply affiliation with, or sponsorship or...

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