HIGHLIGHTS: KARL NIEHAUS · OFFERING SUMMARY: 2714-2804 W. Florence & 2705 W. Florence offer an...
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2705 & 2714-2804 W. FLORENCE AVE EXECUTIVE SUMMARY HIGHLIGHTS: KARL NIEHAUS • 2714-2804 W. Florence - 33,900 SF Lot (310) 880-7900 • 2705 W. Florence - 17,067 SF Lot with Alley Access (310) 300-1222 - Fax • C2-1VL-CPIO zoning on both properties with TOC Tier 1 Bonuses [email protected] • Centrally Located with Easy Access to 4 Freeways (405,10,110 & 105) www.CREI.biz 01450751 - RE License • Easy Access to Amenities, Walk Score of 73 PRICE IF BOUGHT SEPARATELY: 2705 W. Florence - $1,350,000 & 2714-2804 W. Florence - $2,650,000 Insert property picture. Make both pictures as large as possible, yet still asthetically pleasing • The $2.1 Billion Crenshaw Rail Line is Currently Under Construction; Properties are 5 Blocks from Crenshaw &Florence Intersection OFFERING SUMMARY: 2714-2804 W. Florence & 2705 W. Florence offer an investor the opportunity to buy 50,967 SF of commercial land on both sides of Florence Ave. The properties are 5 blocks from the new $2.1 Billion Crenshaw Rail Line being built and thus offers TOC Tier 1 development bonuses. The new rail line has brough significant commercial development and investment into the area to compliment the new rail line. In addition to the new rail line, the property is centrally located and offers easy access to 4 freeways. DEMOGRAPHICS: The population within a 1 mile radius was estimated at approx 37,000 as well as over 390,000 within a 5 mile radius, and this population is expected to grow at 1.66% annually. The average household income was estimated at approximately $ 58,000 within a 3 mile radius. SALES PRICE: $4,000,000; 50,967 SF of Land; 100 Buildable Units over Retail (Both sides of Florence Ave) Information contained herein has been obtained from sources deemed to be reliable. However, no warranties can be assumed for its accuracy.
Transcript of HIGHLIGHTS: KARL NIEHAUS · OFFERING SUMMARY: 2714-2804 W. Florence & 2705 W. Florence offer an...
2705 & 2714-2804 W. FLORENCE AVE
EXECUTIVE SUMMARY
HIGHLIGHTS:KARL NIEHAUS • 2714-2804 W. Florence - 33,900 SF Lot
(310) 880-7900 • 2705 W. Florence - 17,067 SF Lot with Alley Access(310) 300-1222 - Fax • C2-1VL-CPIO zoning on both properties with TOC Tier 1 [email protected] • Centrally Located with Easy Access to 4 Freeways (405,10,110 & 105)www.CREI.biz01450751 - RE License
• Easy Access to Amenities, Walk Score of 73
PRICE IF BOUGHT SEPARATELY: 2705 W. Florence - $1,350,000 & 2714-2804 W. Florence - $2,650,000
Insert property picture. Make both pictures as large as possible, yet still asthetically pleasing
• The $2.1 Billion Crenshaw Rail Line is Currently Under Construction; Properties are 5 Blocks from Crenshaw &Florence Intersection
OFFERING SUMMARY: 2714-2804 W. Florence & 2705 W. Florence offer an investor the opportunity to buy 50,967 SF of commercial land on both sides of Florence Ave. The properties are 5 blocks from the new $2.1 Billion Crenshaw Rail Line being built and thus offers TOC Tier 1 development bonuses. The new rail line has brough significant commercial development and investment into the area to compliment the new rail line. In addition to the new rail line, the property is centrally located and offers easy access to 4 freeways.
DEMOGRAPHICS: The population within a 1 mile radius was estimated at approx 37,000 as well as over 390,000 within a 5 mile radius, and this population is expected to grow at 1.66% annually. The average household income was estimated at approximately $ 58,000 within a 3 mile radius.
SALES PRICE: $4,000,000; 50,967 SF of Land; 100 Buildable Units over Retail (Both sides of Florence Ave)
Information contained herein has been obtained from sources deemed to be reliable. However, no warranties can be assumed for its accuracy.
2705 & 2714-2804 W. FLORENCE AVE
PROPERTY PICTURES
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PropertyPicture
PropertyPicture
Information contained herein has been obtained from sources deemed to be reliable. However, no warranties can be assumed for its accuracy.
2705 & 2714-2804 W. FLORENCE AVE
PROPERTY PICTURES
Local AreaMap
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Aerial Map
Information contained herein has been obtained from sources deemed to be reliable. However, no warranties can be assumed for its accuracy.
2705 & 2714-2804 W. FLORENCE AVE
WALK SCORE
Walk ScorePicture
Walk ScoreSummary
Walk Score Map (WalkScore.com) - Only as far as 10 blocks away from the property - max (The walkscore only matters for distances you will actually walk)
Walk Score Nearby Tenant List (WalkScore.com)
Information contained herein has been obtained from sources deemed to be reliable. However, no warranties can be assumed for its accuracy.
2705 & 2714-2804 W. FLORENCE AVE
PROPERTY PICTURES
ZoningPicture
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Rail LineCrenshaw
Information contained herein has been obtained from sources deemed to be reliable. However, no warranties can be assumed for its accuracy.
2705 & 2714-2804 W. FLORENCE AVE
DEMOGRAPHICS
Population
1) Go to: https://www.stdb.com/dashboard . 2) Click on ArcGIS Business Analyst. 3) Under 'My Projects' click on any project. 4) In the top right, enter the address of the
property. 5) At the top middle, click 'Create Maps'. 6) Click 'Browse All Variables 7) Click Favorites 8) Select the appropriate favorited 'Variable'
Income
1) Go to: https://www.stdb.com/dashboard . 2) Click on ArcGIS Business Analyst. 3) Under 'My Projects' click on any project. 4) In the top right, enter the address of the
property. 5) At the top middle, click 'Create Maps'. 6) Click 'Browse All Variables 7) Click Favorites 8) Select the appropriate favorited 'Variable'
Per Capita
Information contained herein has been obtained from sources deemed to be reliable. However, no warranties can be assumed for its accuracy.
2705 & 2714-2804 W. FLORENCE AVE
DEMOGRAPHICS
Average
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property. 5) At the top middle, click 'Create Maps'. 6) Click 'Browse All Variables 7) Click Favorites 8) Select the appropriate favorited 'Variable'
Retail
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property. 5) At the top middle, click 'Create Maps'. 6) Click 'Browse All Variables 7) Click Favorites 8) Select the appropriate favorited 'Variable'
Goods
HouseholdIncome
Information contained herein has been obtained from sources deemed to be reliable. However, no warranties can be assumed for its accuracy.
2705 & 2714-2804 W. FLORENCE AVE
DEMOGRAPHICS
Employment
1) Go to: https://www.stdb.com/dashboard . 2) Click on ArcGIS Business Analyst. 3) Under 'My Projects' click on any project. 4) In the top right, enter the address of the
property. 5) At the top middle, click 'Create Maps'. 6) Click 'Browse All Variables 7) Click Favorites 8) Select the appropriate favorited 'Variable'
Crime
1) Go to: https://www.stdb.com/dashboard . 2) Click on ArcGIS Business Analyst. 3) Under 'My Projects' click on any project. 4) In the top right, enter the address of the
property. 5) At the top middle, click 'Create Maps'. 6) Click 'Browse All Variables 7) Click Favorites 8) Select the appropriate favorited 'Variable'
Index
Information contained herein has been obtained from sources deemed to be reliable. However, no warranties can be assumed for its accuracy.
Mixed-Use Development: 2714-2804 W Florence AveProposed Apartment Building: Units SF/Unit Parking/Unit
Low Studios - 8% ELI TOC x 473 SF 0 SF 0.00Studios x 525 SF 0 SF 1.00
8% Low Income 1 Bedrooms + Den - 8% ELI TOC 5 x 675 SF 3,375 SF 0.001 Bedrooms + Den 60 x 750 SF 45,000 SF 1.00Low Income 2 Bedrooms - 8% ELI TOC x 900 SF 0 SF 0.002 Bedrooms x 1,000 SF 0 SF 2.00Retail 9,100 SF 9,100 SF 3 per 1,000 SF
Total Units 65 Total Rentable Size 57,475 SFParking:
For a 65 Unit Building, Parking Spaces Required 87 = 24,881 SF Garage 87 Parking SpacesParking Spaces Available (Less on Grade Construction) 24,800 SF Available per
Lot Dimensions285 SF/Parking Space (Parking Space SF includes all Driveways & Parking Spaces)
Property Income: Rent/SF $/Unit $/Month0 Low Studios - 8% ELI TOC $0.00 /per Unit - 0 Studios $0.00 /per Unit - 5 Low Income 1 Bedrooms + Den - 8% ELI TOC $0.65 /per Unit 439 2,195 60 1 Bedrooms + Den $2.53 /per Unit 1,900 114,000 0 Low Income 2 Bedrooms - 8% ELI TOC $0.00 /per Unit - 0 2 Bedrooms $0.00 /per Unit -
Apartment Annual Gross Income 1,394,340 Operating Expenses Paid by Landlord (418,302)
Retail Income 2.00 /SF all Retail $18,200 218,400 5% Vacancy Reserve (80,637)
1,113,801 NOICompleted Project replaced by Permanent Loan with 1.20 DCR
Approx Permanent Loan to replace Construction Loan (Total Development & Construction Financing Costs): 12,931,257$ 30 Year Amortization with: 2.75% Interest Rate (633,489) Yrly Mortgage
Yrly Cash on Cash Return if Held for Income 8.67% 480,312 Yrly Cash FlowPrinciple Reduction Return in 1st Yr if Held for Income 5.08% 281,408 Yrly Principle Reduction
Total Investor Capital Return 13.74% 761,721 Total ReturnSale Price of Completed Project: Based on 4.50% Cap 24,751,133 $380,787 $/Unit
3.0 % Broker Compensation from Sales Price (742,534) 0.5 % Closing/Legal Costs (from Sales Price) (123,756)
Total Net Sales 23,884,844 Development Costs: Price/sf Price/Unit
Building Hard Costs (including Contractor Fees) 62,850 SF Building (10,998,750)$ 175 169,212 Soft Costs (2,199,750) 35 33,842 Closings/Legal Costs (1% of Land Price) (26,500) 408 On Grade Garage Hard Costs 24,800 SF Garage (1,240,000) 50 19,077 Subterranean/2nd Floor Garage Hard Costs 0 SF Garage - 75 - Contingency Factor (5% of Total Development Costs) (723,250) 11,127 Total Development Costs (15,188,250) 242 (Building/sf) Land Price (bought all cash) Cost/Buildable Unit $40,769 (2,650,000) 78 (Land/sf)
Total Development & Land Cost: (17,838,250)$ Prime Rate 70% Financed at a Cost of: (634,974) 4.25% IO Loan
Total Development & Construction Financing Costs: (18,473,224) Total Project (with Land) is Investor Capital 70% Construction Financed 12,931,257$
Profit as % of Investor Capital: 97.6% Profit as % on Total Cost: 29.3%Profit from Sale of Project 5,411,619$
3.25%
30%
30%
If H
eld
for
In
com
e:
5,541,967
Mixed-Use Development: 2714-2804 W Florence Ave
Site Parameters
Zoning: C2-1VL-CPIO TOC Tier 1 Depth WidthApprox Lot Area: (Depth x Width) 113 Feet x 300 Feet =
Alley (1/2 of Depth x Width) x =Alley #2 (1/2 of Depth x Width) x = 0 SFHighway Dedication (Depth x Width) x =
FAR Lot Area
Buildable Unit CalculationAllowed per SF of Buildable Lot for Zoning: 800 SF Therefore 43 Max # Buildable UnitsApplying Buildable Unit Bonus: 1.50 Therefore 65 Max # Buildable Units
FARFAR with current zoning allows for max building of 50,850 SFFAR if applying Bonuses (if Any) allows for max building of 93,225 SF
Efficiency - Deductions for Common Areas, Stairways, etc on Residential Use Stories 75,713 SF Rentable Residential9,100 SF Rentable Commercial
84,813 SF Total Rentable SF
Set Backs on Residential Use Stories Zoning Standards Bonuses if Any Net After BonusesSide Yard Set Back ( Deduct half from each side) 10 Feet Less Required 10 FeetFront Yard Set Back Less Required 0 FeetBack Yard Set Back 15 Feet 25% Less Required 11 FeetMax Height 45 Feet 11 Feet Additional 56 Feet
Buildable Dimensions on Residential Use Stories (Lot Less Set Backs)Buildable Lot Depth 102 FeetBuildable Lot Width 290 Feet
Buildable Lot Area on Residental Use Stories Depth Width102 Feet x 290 Feet =
Buildable Lot Area on Commercial Use Stories Depth Width113 Feet x 300 Feet = 33,900 SF
90%
29,508 SF
0 SF
Max Building Size per FAR
33,900 SF0 SF
2.751.50
33,900 SF
Mixed-Use Development: 2705 W Florence AveProposed Apartment Building: Units SF/Unit Parking/Unit
Low Studios - 8% ELI TOC x 473 SF 0 SF 0.00Studios x 525 SF 0 SF 1.00
9% Low Income 1 Bedrooms + Den - 8% ELI TOC 3 x 675 SF 2,025 SF 0.001 Bedrooms + Den 32 x 750 SF 24,000 SF 1.00Low Income 2 Bedrooms - 8% ELI TOC x 765 SF 0 SF 0.002 Bedrooms x 850 SF 0 SF 1.00Retail 4,500 SF 4,500 SF 4 per 1,000 SF
Total Units 35 Total Rentable Size 30,525 SFParking:
For a 35 Unit Building, Parking Spaces Required 50 = 14,250 SF Garage 53 Parking SpacesParking Spaces Available (Less on Grade Construction) 12,567 SF Available per
Lot Dimensions285 SF/Parking Space (Parking Space SF includes all Driveways & Parking Spaces)
Property Income: Rent/SF $/Unit $/Month0 Low Studios - 8% ELI TOC $0.00 /per Unit - 0 Studios $0.00 /per Unit - 3 Low Income 1 Bedrooms + Den - 8% ELI TOC $0.65 /per Unit 439 1,317 32 1 Bedrooms + Den $2.53 /per Unit 1,900 60,800 0 Low Income 2 Bedrooms - 8% ELI TOC $0.00 /per Unit - 0 2 Bedrooms $0.00 /per Unit -
Apartment Annual Gross Income 745,404 Operating Expenses Paid by Landlord (223,621)
Retail Income 2.00 /SF all Retail $9,000 108,000 5% Vacancy Reserve (42,670)
587,113 NOICompleted Project replaced by Permanent Loan with 1.20 DCR
Approx Permanent Loan to replace Construction Loan (Total Development & Construction Financing Costs): 6,809,980$ 30 Year Amortization with: 2.75% Interest Rate (333,614) Yrly Mortgage
Yrly Cash on Cash Return if Held for Income 8.69% 253,499 Yrly Cash FlowPrinciple Reduction Return in 1st Yr if Held for Income 5.08% 148,198 Yrly Principle Reduction
Total Investor Capital Return 13.76% 401,697 Total ReturnSale Price of Completed Project: Based on 4.50% Cap 13,046,947 $372,770 $/Unit
3.0 % Broker Compensation from Sales Price (391,408) 0.5 % Closing/Legal Costs (from Sales Price) (65,235)
Total Net Sales 12,590,304 Development Costs: Price/sf Price/Unit
Building Hard Costs (including Contractor Fees) 33,417 SF Building (5,847,917)$ 175 167,083 Soft Costs (1,169,583) 35 33,417 Closings/Legal Costs (1% of Land Price) (13,500) 386 On Grade Garage Hard Costs 12,567 SF Garage (628,350) 50 17,953 Subterranean/2nd Floor Garage Hard Costs 0 SF Garage - 75 - Contingency Factor (5% of Total Development Costs) (382,968) 10,942 Total Development Costs (8,042,318) 241 (Building/sf) Land Price (bought all cash) Cost/Buildable Unit $38,571 (1,350,000) 79 (Land/sf)
Total Development & Land Cost: (9,392,318)$ Prime Rate 70% Financed at a Cost of: (336,225) 4.25% IO Loan
Total Development & Construction Financing Costs: (9,728,542) Total Project (with Land) is Investor Capital 70% Construction Financed 6,809,980$
Profit as % of Investor Capital: 98.1% Profit as % on Total Cost: 29.4%Profit from Sale of Project 2,861,761$
30%
If H
eld
for
In
com
e:
2,918,563
3.25%
30%
Mixed-Use Development: 2705 W Florence Ave
Site Parameters
Zoning: C2-1VL-CPIO TOC Tier 1 Depth WidthApprox Lot Area: (Depth x Width) 116 Feet x 148 Feet =
Alley (1/2 of Depth x Width) 8 Feet x 148 Feet =Alley #2 (1/2 of Depth x Width) x = 0 SFHighway Dedication (Depth x Width) x =
FAR Lot Area
Buildable Unit CalculationAllowed per SF of Buildable Lot for Zoning: 800 SF Therefore 23 Max # Buildable UnitsApplying Buildable Unit Bonus: 1.50 Therefore 35 Max # Buildable Units
FARFAR with current zoning allows for max building of 25,601 SFFAR if applying Bonuses (if Any) allows for max building of 46,935 SF
Efficiency - Deductions for Common Areas, Stairways, etc on Residential Use Stories 38,192 SF Rentable Residential4,500 SF Rentable Commercial
42,692 SF Total Rentable SF
Set Backs on Residential Use Stories Zoning Standards Bonuses if Any Net After BonusesSide Yard Set Back ( Deduct half from each side) 10 Feet Less Required 10 FeetFront Yard Set Back Less Required 0 FeetBack Yard Set Back 15 Feet 25% Less Required 11 FeetMax Height 45 Feet 11 Feet Additional 56 Feet
Buildable Dimensions on Residential Use Stories (Lot Less Set Backs)Buildable Lot Depth 112 FeetBuildable Lot Width 138 Feet
Buildable Lot Area on Residental Use Stories Depth Width112 Feet x 138 Feet =
Buildable Lot Area on Commercial Use Stories Depth Width116 Feet x 148 Feet =
17,067 SF
1,184 SF
Max Building Size per FAR
18,251 SF0 SF
2.751.50
17,067 SF
90%
15,463 SF
