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WEST NINTH STREETA P A R T M E N T S

Cameron Samimi310.259.7556

[email protected]

424 W. 9th StreetLong Beach, CA 90813 $1,350,000 8 UNITS

EXCLUSIVE MULTI-FAMILY OFFERING

WEST NINTH STREET APARTMENTS

TABLE OF CONTENTSThe Property ................................................................................................................ 3 Property Overview 4

Investment Highlights – Unit Amenities 6

Propert Photographs 7

The Financials ........................................................................................................... 10 Rent Roll 11

Financial Analysis – Summary 12

Sales Comparables 13

On Market Comparables 16

The Location .............................................................................................................. 18 Long Beach Overview 19

Long Beach Projects 17

Downtown Long Beach 19

Disclaimer and Confidentiality Agreement 27

424 W. 9TH STREET EXCLUSIVE MULTI-FAMILY OFFERING

LYON STAHL INVESTMENT REAL ESTATE • 3

THE PROPERTY


PROPERTYOVERVIEWLyon | Stahl is pleased to present this excellent 8 unit investment opportunity at 424 W. 9th Street Long Beach, CA.

The property consists of 2 buildings on a large grassy 4,100 square ft. lot with (5) 1-bed/1-bath units and (3) studios. The 9th St. Apartments not only offer the best cap rate available on the market but are complimented by beautiful landscaping and upgraded units. The units come with a mixture of hardwood floors, high ceilings, a sun-deck, granite counter tops, and vintage built-in cabinets. This property captures all of the beauty of the historic Willmore district with a fresh look to appeal to the young professionals flooding to downtown Long Beach’s hip revival.

The 9th Street Apartments are located just minutes from the $520 million dollar Civic Center redevelopment, the $250 million Queen Mary Island entertainment complex, the $53 million dollar Long Beach Aquarium refresh, and dozens of other new high rise and entertainment developments planned for downtown Long Beach. Walkscore.com already gives the 9th st. Apartments an 89 for its close proximity to current restaurants, transit, and entertainment options and with the $2.5 billion in developments coming to the surrounding area, this property is primed to reap the benefits.

Already offering the best cap rate available, these below market rents offer any investor the chance to to achieve a 6% cap rate and a 11 GRM. This is the perfect asset for any exchange buyer or owner looking for a turn-key, cash flowing asset in LA’s last affordable beach town.



PROPERTYOVERVIEW

PRICE.......................................................................................

ADDRESS.......................................................................................

CITY, STATE, ZIP.......................................................................................

COUNTY.......................................................................................

YEAR BUILT.......................................................................................

NUMBER OF UNITS.......................................................................................

BUILDING SIZE.......................................................................................

LOT SIZE.......................................................................................

CURRENT CAP.......................................................................................

CURRENT GRM.......................................................................................

MARKET CAP.......................................................................................

MARKET GRM.......................................................................................

UNIT MIX


CONTINUED

$1,350,000

424 W. 9th Street

Long Beach, CA 90813

Los Angeles

1924

8

3,690 SF

4,105 SF

5.01%

12.73

6.4%

10.2

3 Studio, 5 1Bed + 1 Bath

INVESTMENT HIGHLIGHTS

UNIT AMENITIES (select units)

• Located Blocks from both the Long Beach Civic Center and Superior Courthouse Development Projects

• Full Copper Plumbing, Plus Upgraded Drainage and Sewer Line

• Strong Non-Rent Controlled Market

• Value-Add Property – 16% Rental Upside • Landscaped Front Yard and Rear Walkway

• Transit Friendly – Walk to Train/Bus

• Hardwood Floors

• Original Period Built-ins

• Tile & Ceramic Floor in Kitchen and Baths

• Granite Counter Tops

• Refrigerators and Gas Stoves

• Ceiling Fans

• Sundeck


THE FINANCIALS



UNIT # UNIT TYPE SQ. FT. ACTUAL RENT MARKET RENT NOTES

424 1 Bedroom + 1 Bath 575 $1,140 $1,350 Section 8

426 1 Bedroom + 1 Bath + Den 640 $1,195 $1,350

428 1 Bedroom + 1 Bath 560 $1,190 $1,350

430 1 Bedroom + 1 Bath 575 $1,195 $1,350

430 1/2 1 Bedroom + 1 Bath 590 $1,350 $1,450

432 Studio + 1 Bath 210 $950 $1,050

848 Virgina Court Studio + 1 Bath 270 $995 $1,050

848 Virgina Court Studio + 1 Bath 270 $825 $1,050

TOTALS 3,690 $8,840 $10,000

RENT ROLL





PRICE.......................................................................................DOWNPAYMENT.......................................................................................

ADDRESS.......................................................................................APN.......................................................................................NUMBER OF UNITS*.......................................................................................YEAR BUILT.......................................................................................BUILDING SIZE.......................................................................................LOT SIZE.......................................................................................CURRENT CAP RATE.......................................................................................CURRENT GRM.......................................................................................MARKET CAP RATE.......................................................................................MARKET GRM.......................................................................................PRICE PER UNIT.......................................................................................PRICE PER SF.......................................................................................

LOAN AMOUNT.......................................................................................DOWN PAYMENT.......................................................................................TERM/INTEREST RATE.......................................................................................MONTHLY PAYMENT.......................................................................................ANNUAL PAYMENT.......................................................................................LOAN-TO-VALUE.......................................................................................AMORTIZATION.......................................................................................PROPOSED/EXISTING.......................................................................................DEBT COVERAGE RATIO.......................................................................................LOAN TERM.......................................................................................

PRICING SUMMARY SCHEDULED RENT SUMMARY

SCHEDULED RENT SUMMARY

EXPENSE SUMMARY

BUILDING DATA/FINANCIAL INDICATORS

FINANCIALSUMMARY

Unit Type No. Of Units Average Rent Market RentStudio 3 $1,000 $1,100

1 Bed + 1 Bath 5 $1,300 $1,450

Scheduled Gross Income Current Actuals Market Pro FormaLess Vacancy 5.00% $106,080 $122,400

Gross Operating Income $100,776 $116,280

Per Unit Current Actuals Market Pro Forma Real Estate Taxes and Special Assessment Tax $2,109 $16,875 $16,875

Insurance $180 $1,436 $1,436 Utilites $700 $5,600 $5,600 Gardener $89 $710 $710 On-Site Management $0 $0 $0 Off-Site Management 5.00% $663 $6,120 $6,120 Maintenance/Repairs $400 $3,182 $3,182 Misc/Reserves $200 $1,600 $1,600 TOTAL EXPENSES $33,108 $33,108 Expense Per Unit $4,138 $4,138 Expense Per SF $8.07 $8.07 NET OPERATING INCOME $67,668 $83,172 Pre-Tax Cash Flow 3% $12,213 6.84% $27,717 Principal Reduction $16,072 $16,072 TOTAL RETURN 6.98% $28,285 10.81% $43,789

$1,350,000

30% $405,000

Long Beach, CA 90813

7272-015-016

8

1924

3,690 SF

4,105 SF

5.01%

12.73

6.14%

11.03

$168,750

$365

$945,000

$405,000

5 YRS FIXED 4.2%

$4,621

$55,455

70%

30

PROPOSED

1.22

360



SALES COMPARABLES MAP


SALES COMPARABLES

Sales PriceSale DateTotal Units

Price Per Unit

Total SFS/SFCAPGRM

Unit MixYear BuiltLand Area

Days on MarketAddress


SALES COMPARABLES Sales PriceSale DateTotal Units

Price Per Unit

$1,703,571-8

$202,848

6,155 Sf$287

4.74%14.59

Total SFS/SFCAPGRM



Averages



ON MARKET COMPARABLES MAP


SALES COMPARABLES

Sales PriceSale DateTotal Units

Price Per Unit

Total SFS/SFCAPGRM



THE LOCATION





Long Beach has emerged as a popular living area in Southern California. Located south of the city of Los Angeles, made up of 51.48 square miles and a population just below 471,000, primarily made up of college graduates, working professionals and families, Long Beach offers many attractions including the Queen Mary, Aquariums, Toyota Grand Prix, and the Long Beach Convention Center. The historic Pine Avenue provides many restaurants and shopping options for residents. Long Beach is also home to major businesses such as Verizon, Boeing, and DIRECTTV. Long Beach provides alternative transits for working professionals to avoid heavy traffic in the southern California area and easy access to the 405 and the 710 for easy commutes to downtown Los Angeles, and Orange County.

In 2017 Long Beach’s Year-to-Year rental price change increased a whopping 7.8% emerging as one of the biggest in major US cities. Over 60% of Long Beach residents are renters, with one-third of renters spending more than half their income on housing. In 2016, the overall average house and condo value in the city of Long Beach was around $518,900 which was significantly higher than the overall California average of $477,500. Long Beach has since past major cities such as Portland and Atlanta to become a major competitor in the rental market. The development of Long Beach has grown significantly from a financial and economic standpoint. Recently, one and two-bedroom units have matched Los Angeles units dollar for dollar. Long Beach has been developing new complexes that offer lots of amenities which explains the demand for housing in the area. Developers in Long Beach have been focusing on creating spaces for multigenerational families who want to move to the area. Using smaller lots and constructing larger units, make it suitable for these families. The proposed units are primarily being focused in neighborhoods, which accommodates Long Beach citizens who use alternative ways of transportation. These larger units will allow families to access efficient transits to various businesses and schools, located in the Long Beach and Los Angeles areas.

LONG BEACH CITY OVERVIEW

The past few years have been very busy for downtown Long Beach. There are over a dozen new developments in the works totaling over $4 billion. Among them are an enormous entertainment complex planned beside the Queen Mary, a total overhaul of the city’s civic center, a pair of mixed use developments with nearly 1,000 units of housing for students between them, and an apartment tower set to be the largest building in town.



THE NEW LONG BEACH CIVIC CENTER PROJECT

The New Long Beach Civic Center Project involves the financing, design, construction, operation and maintenance of a new City Hall and Main Library and revitalization of Lincoln Park into a destination park. The Project may provide opportunities for private development and may further include a permanent headquarters building for the Port of Long Beach. The $520 million civic center will replace the old city hall and include efficient new offices for the Port of Long Beach, a new city library, retail marketplace and public park.

LA.curbed.com



QUEEN MARY ISLAND

Renderings of the proposed $250 million redevelopment give us a glimpse of what to expect for the 65 acres of waterfront that will be transformed into a destination called Queen Mary Island. Queen Mary Island aims to have something for everyone. It will include restaurants, live music, 700,000 square feet of retail space, and a new 200-room hotel. A 150,000-square-foot structure will house an attraction called Urban Adventure, featuring 20 activities for the thrill-seeker, such as surfing, zip lining, a trampoline park, and an indoor ice-climbing wall.

LA.curbed.com



THE AQUARIUM OF THE PACIFIC

The Aquarium of the Pacific in Long Beach announced a big, undulating expansion yesterday, revealing plans for a new wing they’re calling Pacific Visions. The 29,000-square-foot addition will include a number of flashy components, including: A two-story, 300-seat immersive theater with a 32-foot-tall, curving screen and “floor projection disc,” a new Changing Exhibit Gallery with live animals, multimedia displays, and “dynamic projected wall murals,” an art gallery for cultural events and exhibitions, along with an orientation gallery with a 26-foot-wide “media wall.”

LA.curbed.com



Plans for a 35-Story Tower originally called for just 221 units and 6,367 square feet of retail space. Now, however, its developers are seeking approval for an additional 94 units and another 344 square feet of retail space. An underground parking garage would be expanded from two levels to five to make room for some of these changes.The tower is the second phase of the Shoreline Gateway project at the intersection of Ocean Boulevard and Alamitos Avenue.

This ambitious Big Residential Complex near the Pacific Avenue Blue Line station would replace a parking lot with a pair of residential structures with 325 units, according to a recent presentation from Mayor Robert Garcia.

New development called Broadway Block on Long Beach Boulevard is set to include a 21-story residential tower and a separate seven-story structure with apartments and a performing arts venue for California State University Long Beach. At the center of the 50,000-square-foot lot is the Moderne-style Acres of Books building, constructed in the 1920s and the home of a beloved bookstore between 1960 and 2008.

The OceanAire project is rising on the site of an Ocean Avenue parking lot and promises to offer future residents some very nice views and convenient access to both public transit and the beach. According to the architects, the upscale apartments will be catered to young professionals and will feature amenities like a pool, sun deck, fitness room/yoga studio, and the increasingly obligatory dog spa.

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Glassy Hotel Tower – This hotel tower would rise in the heart of Downtown Long Beach, bringing hundreds of guest rooms and new restaurant space to the area. Plans for the large development are still being worked out. Longbeachize reports that developer American Life has proposed an agreement with the city that would allow the project to rise 36 stories and include more than 500 rooms.

This Five Floors of Apartments complex is one of two projects now being constructed by Ensemble Investments, with designs by architecture firm Studio T Square 2 in collaboration with Mark Tessier Landscape Architecture. It will include 95 apartments and 177 parking spaces.

The city’s planning commission has approved a new seven-story apartment building with 142 units and ground-floor commercial space. Located at 500 West Broadway, the project is set to include 65 studio apartments. 41 one-bedrooms, 32 two-bedrooms, and four three-bedroom units. Street-level commercial space will include 1,168 square feet of retail and a 2,267-square-foot cafe.

Apartments and a Bridge – Under a .5 mile from the Ocean Boulevard project above, this similar project will include 112 units, 144 parking spaces, and space for a cafe or retail business. It’s rising immediately next to a flashy new pedestrian bridge now under construction. Once complete, the bridge will connect the city’s convention center to the nearby Performing Arts Center.

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The Beacon – This affordable housing complex broke ground just last month and is expected to open in 2019. Once complete, the two-building development will include 160 units of supportive housing for veterans and seniors.

The Pacific will feature 163 apartments (17 of them affordable), along with community amenities like a fitness center and bike workshop.

Amli Parc Broadway – will replace a government office building with 222 residential units and 8,500 square feet of retail space, including an art gallery and a “bike kitchen.”

101 Alamitos Avenue – Developer SARES REGIS Group, which is building The Pacific, is also behind this seven-story residential development with 136 condos and a bit of retail/restaurant space.

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Ocean View Tower is located right next to the large Camden Harbor View apartment complex, this adaptive reuse project will transform an existing office building into a residential development with 94 apartments and 4,597 square feet of retail space.

320 Alamitos Avenue – This proposed project would include 77 apartments spread across seven stories at the eastern edge of the downtown area.

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Disclaimer & Confidentiality Agreement

The information contained in this Offering Memorandum (“Memorandum”) is proprietary and strictly confidential; it is intended to be reviewed only by the party receiving it from Broker and should not be made available to anyone else without the written consent of Broker. By retention or use of this Memorandum, you agree that its contents are confidential, that you will hold it in the strictest confidence, and that you will not disclose any of its contents contrary to these terms.

This Memorandum has been prepared to provide summary, unverified information to establish a preliminary level of interest in the subject property (“Property”). The information in this Memorandum has been obtained from sources Broker believes to be reliable; however, Broker has not conducted sufficient investigation to make any warranty or representation whatsoever including but not limited to the accuracy or completeness of the information, veracity or accuracy of the information, condition of the Property or its compliance or lack of compliance with applicable governmental requirements, developability, suitability or financial performance of the Property, income or expenses for 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 or Federal regulations, the physical condition of the improvements thereon, or the financial condition or business Property and does not purport to be an all – inclusive representation regarding the Property or to contain all or part of the information which prospective investors may require to evaluate the purchase of the Property. Additional information and an opportunity to investigate the Property will be made available to interested and qualified prospective purchasers. All information is based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of Broker, therefore, all information is subject to material variation. The information contained herein is not a substitute for a thorough due diligence investigation. Interested parties are expected to review all information of whatever nature independently and not rely on the contents of this Memorandum in any manner.

The Property owner (“Owner”) expressly reserves the right, at its sole discretion, to reject any or all offers to purchase the Property, and/or to terminate discussions at any time with or without notice. The Owner shall have no legal commitment or obligation unless and until written agreement(s) have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

Cameron Samimi310.259.7556

[email protected]

Exclusively Marketed By:

the property - images1.loopnet.com€¦ · west ninth street apartments cameron samimi 310.259.7556...

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