Offered at $3,995,000 - LoopNet...Total Operating Expenses $86,241 $7.40 Net Operating Income...

Offered at $3,995,000

[email protected]

Property FeaturesTotal Building Area 11,658 square feetSite Area 33,350 square feet (.766 acre)Parking Ratio 3.3 per 1,000 square feet / 38 parking spaces totalOccupancy 90% (One 1,160 square foot suite vacant)Location North side of E. Carson Street, adjacent to the 405 FWYRenovations Building exterior was recently repainted in 2019

1329-1347 E. Carson Street, Carson, CA

AERIAL PHOTOS

Introduction

SCOTT HALL, INC. 1329-1347 E. Carson St., Carson, CA 1

SUMMARY OF SALIENT FACTS & CONCLUSIONS Name: Carson Plaza Property Type: Multi-Tenant Retail Center Address: 1329-1347 E. Carson Street Carson, CA 90745 Location: North side of E. Carson Street, west of Vera Street, east of

Acarus Avenue, in the City of Carson, Los Angeles County, California

Assessor’s Parcel Number: 7327-005-023 Census Tract Number: 5433.06 Owner/Borrower: HCJA Properties, LLC - John Deirmenjian Last Sale: April 30, 2004 for $2,385,000 Site Data Site Area: 33,350 square feet (0.766 acre) Frontage x Depth: 230’ x 145’ Block Location / Shape: Interior / Rectangular Topography: Level and on street grade Zoning: CG-D (General Commercial, Design Review Overlay, DOR)

zone, Carson Flood Zone: Zone “X500L” (panel 060107-1955F, dated 9/26/08); not a

flood hazard On-Site Contamination Concerns: None noted Alquist-Priolo Fault Zone: No Liquefaction Area: Yes (no adverse impact on value) Adverse Easements: None


HECKENBERG REALTY GROUP RODEO REALTY

Introduction


SUMMARY OF SALIENT FACTS & CONCLUSIONS Improvement Data: Year Built: 1971 Construction: Single-story concrete block building, concrete slab

foundation, flat composition built-up roof; Uniform Building Code Type III

Gross/Rentable Building Area: 11,658 square feet Occupancy Rate: 90% Configuration: 9 spaces from 1,146 SF to 2,320 SF Parking Ratio (# of Spaces): 3.3/1,000 (38 spaces) Floor Area Ratio (FAR): 0.35:1 Fire Safety: Fire extinguishers Condition / Quality: Average / Average Deferred Maintenance: None Highest & Best Use as vacant: Construct a multi-tenant retail center that meets current

market trends Highest & Best Use as improved: “As Is” Value Estimate Summary Sales Comparison Approach: Hypothetical Value “As if Stabilized”: $3,500,000 Value “As Is”: $3,450,000 Income Capitalization Approach: Hypothetical Value “As if Stabilized”: $3,925,000 Value “As Is”: $3,880,000 Hypothetical Value “As If Stabilized”: $3,925,000 Value “As Is” $3,880,000 Exposure Time: 3-6 Months Insurable Replacement Cost: $1,400,000



Income Capitalization Approach – Direct Capitalization Analysis


Revenues The contract rents are compared to the market in the table below.

Contract Rent V. Market Rent

Gross Rental Income: In aggregate, the contract rents are below-market. The market rents are used to project gross rental income. At the conclusion to the income approach, a value adjustment for the negative impact on value caused by the below-market contract rents will be estimated and applied. Based on the estimated market rent, gross annual income is projected to be $251,813.

Reimbursement Income: The tenant reimburses the landlord for CAM, insurance, and property taxes. The reimbursement income is $77,553 (see pro-forma) or $0.55/SF/month.

Vacancy & Collection Loss As stated in the Subject’s Primary Market Area, the retail vacancy rate is 3.9% per CoStar. Most investors apply a vacancy factor in the range of 3% to 5% when purchasing multi-tenant commercial properties. We conclude to a vacancy and collection loss factor of 5% for the subject.

Operating Expenses When analyzing an income producing property such as the subject, there exist certain

fixed and variable operating expenses that are incurred in the operation of the property. The subject’s operating expense statements for 2017 was provided for review and the statement is in the addenda. The expenses are presented below:

Suite # Tenant Contract Rent/Mo.

Contract Rent/SF

Market Rent/Month

Market Rent/SF

1329 Bakery $3,000.00 $2.59 $2,088 $1.80 1331 Cleaners $1,957.00 $1.69 $2,088 $1.80 1333 Beauty Salon $1,311.27 $1.13 $2,088 $1.80 1335 Madball Tattoos $1,300.00 $1.06 $2,218 $1.80 1337 Massage $1,680.95 $1.45 $2,088 $1.80 1339 (vacant) $0.00 $0.00 $2,088 $1.80 1341 Metro PCS $2,500.00 $2.18 $2,063 $1.80 1343 Rosario Italian $1,680.95 $1.45 $2,088 $1.80

1345-47 Carson's Liquor $3,000.00 $1.29 $4,176 $1.80 Totals $16,430.17 $1.41 $20,984 $1.80

Income Capitalization Approach – Direct Capitalization Analysis


Subject Expenses

Period 2017 $/SF

Rental Income $159,698 $13.70 Reimbursement Income $53,951 $4.63 Total Income $213,649 $18.33 Expenses

CAM $19,847 $1.70 Professional Management $12,000 5.62% Insurance $12,422 $1.07 Legal, Professional Fees $1,767 $0.15 Property Taxes $34,605 $2.97 Reserves $5,600 $0.48 Total Operating Expenses $86,241 $7.40 Net Operating Income $73,457 $6.30

Expense Comp 1: A 12,474 SF Retail Center

Year Jan-Jun ‘16

$/SF 2015 $/SF

1.5-Yr. Ave./SF

Rental Income $6.23 $12.10 $11.45 Reimbursement Income $0.93 $1.78 $1.62 Total Income $7.17 $13.87 $12.60 Expenses

Property Taxes $0.97 $1.47 $1.46 Insurance $0.24 $0.45 $0.41 CAM Common Utilities $0.16 $0.31 $0.28

Maintenance & Repair $0.54 $0.39 $0.55 Rubbish Removal $0.19 $0.32 $0.31 Grounds/Landscaping $0.05 $0.14 $0.11 Total CAM $0.94 $1.04 $1.25 Adm. & Misc. $0.02 $0.09 $0.07 Professional Management 4.33% 4.36% 5.20%

Reserves $0.64 $0.42 $0.63 Total Expenses $3.11 $4.20 $4.38 NOI $4.06 $9.67 $8.22

*Per February 2018 Rent Roll

Unit Tenant Rent RSF Rent/SF CAM Due Total$SF1329 VACANT -$ 1160 1.75$ 0.50$ -$ -$1331 JCCleaners 1,957.00$ 1160 1.69$ 500.00$ 2,457.00$ 2.12$1333 ShawntaSawyersSalon 1,350.60$ 1160 1.16$ 500.00$ 1,850.60$ 1.60$1335 MadballTattoos 1,339.00$ 1232 1.09$ 500.00$ 1,839.00$ 1.49$1337 DreamMassage 1,731.37$ 1160 1.49$ 500.00$ 2,231.37$ 1.92$1339 Entyce 1,044.00$ 1160 0.90$ 580.00$ 1,624.00$ 1.40$1341 EmpireWorkforceSolutions 1,088.70$ 1146 0.95$ 573.00$ 1,661.70$ 1.45$1343 Rosario'sItalian 1,731.38$ 1160 1.49$ 550.00$ 2,281.38$ 1.97$

1345-47 CarsonLiquor 3,182.70$ 2320 1.37$ 1,000.00$ 4,182.70$ 1.80$

ADVANTAGEOUSPROPERTYMANAGEMENT1329-1347E.CarsonStreet

June2019RentRoll



Property Description


IMPROVEMENT DESCRIPTION & ANALYSIS Fire Safety: Fire extinguishers Condition / Quality: Average / Average Exterior Building: Storefront glass windows & doors in aluminum frames,

painted concrete block, wood beams, painted stucco, tenant signs attached to wood eves, halogen/fluorescent lighting attached, some video/security cameras, tile roof slopes and rolled composite roof

Interior Improvements: Each store has a ceramic tile and laminate flooring; painted

drywall walls, acoustic tile drop ceiling with recessed lighting, 8’-10’ height, and a 2-fixture restroom per space

HVAC: Each space is 100% heated & cooled via forced-air units

mounted on the roof. Utilities: The spaces are individually metered for electricity and gas.

The property is master-metered for water. Building Design/Integrity: The design is adequate for the current use. The structural

integrity of the building appears to be sound. Site Improvements: Asphalt paved parking, concrete block wall along north and

east property line, wrought iron gate securing rear entries, planters with concrete curbing (landscaped with bushes/shrubs/trees), and tenant registry sign

Deferred Maintenance: None

Year Built: 1971 Actual Age: 47 years Effective Age: 20 years Economic/Useful Life: Per Marshall & Swift Cost Guide (sec. 97, p. 12), the

economic life is estimated to be 50 years.



Regional Overview


Regional Overview


Source: Marcus & Millichap, 3rd Quarter 2017 Consumer Price Index (CPI)

Prices in the Los Angeles area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U). In 2017, the CPI-U advanced 3.6% up from 2.1% the prior year.



City Overview


Carson is a city in Los Angeles County and is located 13 miles south of downtown Los Angeles and approximately 14 miles away from the Los Angeles International Airport. Carson was incorporated on February 20, 1968 and currently, the city has total land area of 19.0 square miles. The boundaries of the city of Carson are Gardena (91) Freeway to the north, Long Beach (710) Freeway to the east, Harbor (110) Freeway to the west, and the Pacific Coast Highway (1) to the south. The San Diego (405) Freeway bisects the city in an east/west direction. As of the 2010 census, Carson had a total population of 91,714. Transportation The city operates the Carson Circuit bus that serves the local community and connects to other bus services and the Del Amo Station, as well as the North-South Shuttle which connects Carson to the Harbor Gateway Transit Center.

Attractions Carson is the site of California State University, Dominguez Hills (CSUDH). CSUDH is a major commuter school, attracting students from the surrounding cities of Long Beach, Gardena, and Compton.



City Overview


Carson is also the location of The Home Depot Center, a sports complex including a soccer-specific stadium used by the Los Angeles Galaxy, the Los Angeles Sol, and as of 2005, C.D. Chivas USA, a tennis stadium and a track and field facility. It is also the default home ground for the United States men's national soccer team. It opened in 2003, adjacent to CSUDH. The ADT Event Center is the only permanent indoor velodrome (for track cycling) in the U.S.

HOME DEPOT CENTER VELODROME – Carson, CA

The Goodyear Blimp also has a landing pad in Carson.

Employers According to the City's 2011 Comprehensive Annual Financial Report, the top employers in the city are:

Rank # Employer # of Employees 1 BP West Coast 1,211 2 Lakeshore Learning Materials 887 3 Northrop Grumman 796 4 Golden Wheel 488 5 See's Candies 409 6 Leiner Health Products 392 7 General Mills 362 8 Pepsi Beverages Company 352 9 Monogram Systems 345

10 AT&T California 388 Shopping Carson is home to the Pavilion at South Bay shopping mall, which opened in 1973, is located at the Avalon Boulevard exit off the San Diego Freeway (405). Tenant stores include Sears, IKEA, Target, and 24 Hour Fitness.

Retail Market Overview


MACRO-MARKET SYNOPSIS

(Source: CoStar)

Some markets have been impacted by the growth of e-commerce and subsequent reduction of demand for retail space that has caused a downturn in this asset class nationwide. However, the LA metro appears to be weathering the retail downtown better than the nation as a whole. Retail demand has significantly outpaced new supply during the last several years, driving vacancies down and rental rates up. Despite a large supply of new retail deliveries in the first half of 2017, the supply was absorbed with strong leasing activity in the second half of the year. A decline last year in investment volume largely mirrors the national trend. Total retail sales reached nearly $5.5 billion in 2016, but investment volume was 30% lower in 2017.

The average asking rate in Los Angles is $2.69/SF/mo. and is forecast to reach $2.72/SF/mo. in 2018. The vacancy rate is forecast to remain in the vicinity of 3.5%.

City Overview


Carson is also the location of The Home Depot Center, a sports complex including a soccer-specific stadium used by the Los Angeles Galaxy, the Los Angeles Sol, and as of 2005, C.D. Chivas USA, a tennis stadium and a track and field facility. It is also the default home ground for the United States men's national soccer team. It opened in 2003, adjacent to CSUDH. The ADT Event Center is the only permanent indoor velodrome (for track cycling) in the U.S.

HOME DEPOT CENTER VELODROME – Carson, CA

The Goodyear Blimp also has a landing pad in Carson.

Employers According to the City's 2011 Comprehensive Annual Financial Report, the top employers in the city are:

Rank # Employer # of Employees 1 BP West Coast 1,211 2 Lakeshore Learning Materials 887 3 Northrop Grumman 796 4 Golden Wheel 488 5 See's Candies 409 6 Leiner Health Products 392 7 General Mills 362 8 Pepsi Beverages Company 352 9 Monogram Systems 345

10 AT&T California 388 Shopping Carson is home to the Pavilion at South Bay shopping mall, which opened in 1973, is located at the Avalon Boulevard exit off the San Diego Freeway (405). Tenant stores include Sears, IKEA, Target, and 24 Hour Fitness.



Retail Market Overview


(Source: CoStar)



Presentation of Sales


Sale 1 – 23900-22 Crenshaw Blvd. Sale 2 – 1110-12 S. Long Beach Blvd.

Sale 3 – 4130-46 Paramount Blvd. Sale 4 – 4642 Del Amo Blvd.

Sale 5 – 15737 Bellflower Blvd. Sale 6 – 1110-12 S. Long Beach Blvd.

* Most information in this property summary was extracted from a recent bank ordered appraisal dated 2/1/18. Buyers to conduct their own due diligence and inspections with regards to the property facts and conditions.



Presentation of Sales


Summary of Comparable Sales

No. Property Type Address

APN Exposure Time

Year Built Construction Parking Ratio

Land SF F.A.R.

Rentable SF

Sale Date Sale Price

Property Rights

Terms Doc. #

Price/SF Cap. Rate

1 Multi-Tenant Retail

23900-22 Crenshaw Blvd. Torrance, CA 90505

7374-006-037 3.7 months

1956 frame/stucco

2.4/1,000

17,860 SF 0.48:1 8,658 SF

10/31/17 $2,525,000 Leased Fee

37.6% down, 1st TD-$1,575,000

First Republic Bank #1250178

$291.64 4.82%

Comments: The seller was exchanging up his investment. There were 2-3 vacancies at closing. The tenants at the time of sale were A Paw-Fect World, Banners & Signs 4 Less, Miracle Health, and Sue's Kitchen. There are 21 parking spaces. Contact: Stephen Lampe, listing broker, RE/MAX Commercial, 310-802-2500


1110-12 S. Long Beach Blvd. Compton, CA 90221

7302-016-015 12 months

1990 frame/stucco

2.5/1,000

21,344 SF 0.43:1 9,150 SF

8/14/17 $2,225,000 Leased Fee

91% down, 1st TD-$200,000, Seller

#913710

$243.17 n/a

Comments: The last sale was January 2015 for $1,200,000. There are five tenants consisting of two restaurants, laundry, convenience store, and general retail. The property was renovated in 2016. There are 22 parking spaces. Contact: Brian Rhie, listing broker, AB Real Estate, 213-393-3139


4130-46 Paramount Blvd. Lakewood, CA 90712

7151-024-021 22 months

1959 frame/stucco

3.5/1.000

57,691 SF 0.18:1 10,500 SF

6/6/17 $2,400,000 Leased Fee

44.5% down, 1st TD-$1,131,000, Seller

#620256

$228.57 4.80%

Comments: The tenant’s at the time of sale were Barton's Liquor; Bayside Lock Shop; Brien O'Connors; Cuts By Jules; L A Cash Advance; O J's Submarines; Parachard Thai Spa; Real Nails & Spa; and U-Haul. There are 37 parking spaces. Contact: Jim Arias, listing broker, Inco Commercial, 562-498-3395

4 Multi-Tenant Retail 4642 Del Amo Blvd. Torrance, CA 90503

7519-017-049 5.9 months

1965 frame/stucco

5.1/1,000

28,750 SF 0.31:1 8,950 SF

7/20/16 $2,700,000 Leased Fee

74.1% down, 1st TD-$700,000, Seller

#844783

$301.68 3.94%

Comments: At the time of listing, an actual net operating income of $106,362 was reported yielding a cap rate of 3.94%. The property is currently listed for sale at $4,500,000 as the lot has been approved for a 17-unit mixed-use development consisting of 26,126 SF. Contact: James Kong, listing broker, Coldwell Banker Commercial JM Properties, 310-767-5600


15737 Bellflower Blvd. Bellflower, CA 90706

6271-033-023 Listing (1 day)

1990 Frame/stucco

3.4/1,000

47,045 SF 0.39:1 18,467 SF

Listing $5,250,000 Leased Fee

List price based on all cash to seller

$284.29 4.70%

Comments: There are two grocery anchor tenants. The property is 17% vacant and has below market rents allowing for an upside to value. Contact: Maxwell Anderson, listing broker, Marcus & Millichap, 949-419-3200


1110-12 S. Long Beach Blvd. Compton, CA 90221

7302-016-015 22 days

1990 frame/stucco

2.5/1,000

21,344 SF 0.43:1 9,150 SF

Listing $3,500,000 Leased Fee

List price based on all cash to seller

$382.51 n/a

Comments: The property sold on 8/14/17. Contact: Brian Rhie, listing broker, AB Real Estate, 213-393-3139

Sub Multi-Tenant Retail

1329-45 E. Carson St. Carson, CA 90745

7327-005-023 n/a

1971 block

3.3/1,000

33,350 SF 0.35:1 11,658 SF - - -



Offered at $3,995,000 - LoopNet...Total Operating Expenses $86,241 $7.40 Net Operating Income...

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Transcript of Offered at $3,995,000 - LoopNet...Total Operating Expenses $86,241 $7.40 Net Operating Income...