Offering Memorandum...INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo...
Transcript of Offering Memorandum...INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo...
9581 ALCOTT STREET9581 Alcott Street • Los Angeles, CA 90035
Offering Memorandum
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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.
9581 ALCOTT STREET
Los Angeles, CA
ACT ID ZAA0121690
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TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02Rent Roll Summary
Rent Roll Detail
Operating Statement
Notes
Pricing Detail
Acquisition Financing
MARKET COMPARABLES 03Sales Comparables
Rent Comparables
9581 ALCOTT STREET
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9581 ALCOTT STREET
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INVESTMENT
OVERVIEW
9581 ALCOTT STREET
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EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
CBS Enterprises 20,000
Green Equity Investors IV LP 15,000
Ucla Health System Auxiliary 11,154
Yf Art Holdings Gp LLC 10,600
Live Nation Worldwide Inc 8,930
Cedars-Sinai Medical Center 5,334
Earth Technology Corp USA 4,655
Los Angeles Dept Wtr & Pwr 4,655
Magic Workforce Solutions LLC 4,539
Ticketmaster Entertainment LLC 4,390
West Los Angeles V A Med Ctr 4,374
University Cal Los Angeles 4,074
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2019 Estimate Pop 35,813 327,501 789,322
2010 Census Pop 33,884 309,343 746,856
2019 Estimate HH 16,597 155,883 358,738
2010 Census HH 15,521 145,217 334,152
Median HH Income $97,254 $79,301 $71,781
Per Capita Income $73,645 $61,103 $54,318
Average HH Income $158,784 $127,810 $118,531
UNIT MIX
NUMBEROF UNITS
UNIT TYPEAPPROX.SQUARE FEET
14 2+2
1 2+2.5 TH
1 3+2
16 Total 26,975
VITAL DATA
Price $9,750,000 CURRENT POTENTIAL
Down Payment 100% / $9,750,000 CAP Rate 3.69% 4.76%
Loan Type All Cash GRM 16.52 13.89
Price/Unit $609,375Net Operating Income
$360,224 $464,209
Price/SF $361.45Net Cash Flow After Debt Service
3.69% / $360,224 4.76% / $464,209
Number of Units 16 Total Return 3.69% / $360,224 4.76% / $464,209
Rentable Square Feet 26,975
Year Built 1971
Lot Size 0.31 acre(s)
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9581 ALCOTT STREET
OFFERING SUMMARY
▪ Superb Beverlywood Location- Very Low Turnover
▪ 16 Units Built in 1971
▪ Excellent Unit Mix (Units Average over 1400 SF Each)
▪ 28 On-Grade Parking Spaces (22 Individual and 6 Tandem)
▪ Extremely Spacious Units with Central A/C, Bar Area, Fireplaces, and Balconies
▪ Delivered with 7 Vacancies
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to present 9581 Alcott Street, a three story, 16 unit apartment building located in the Beverlywood neighborhood of Los Angeles. 9581 Alcott
St is located in one of the best pockets in the city of Los Angeles, and is in a very strong rental market. The Building consists of Fourteen (14) Two Bedroom/Two Bathroom
units, One (1) Two Bedroom/Two and Two Half Bathroom Townhouse, and One (1) Three Bedroom/Two Bathroom unit. All the units are extremely spacious averaging over
1400 square feet each. In addition to the spaciousness, tenants are also attracted to the property with its diverse amenity package including central A/C, 28 gated parking
spaces, fireplaces, balconies, and a bar area in each unit. The property has tremendous upside for an investor to renovate the units and raise rents as units vacate.
Additionally, a buyer will benefit from taking over the property with 7 vacancies to begin remodeling right away.
9581 Alcott is located just two blocks west of Beverly Drive and less than one block south of Pico. This investment presents an excellent opportunity to own a beautifully
maintained property, in one of the most prime sub-markets of Los Angeles. The buildings close proximity to Wilshire and Olympic Boulevard offers easy access to Beverly
Hills, Beverly Grove and West Hollywood with all of their unique and fine destinations. Century City Mall, The Beverly Center and Grove Malls are only a short drive away
along with the countless other fine dining and shopping options this exquisite area has to offer.
This is an incredible opportunity to own an extremely well located apartment building in an area where turnover is rare. Additionally, an astute investor will capitalize on the
immediate upside offered by taking over the property with 7 vacancies.
INVESTMENT OVERVIEW
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9581 ALCOTT STREET
PROPERTY SUMMARY
OFFERING SUMMARY
PROPOSED FINANCING
First Trust Deed
Loan Type All Cash
Debt Coverage Ratio
THE OFFERING
Property 9581 Alcott Street
Price $9,750,000
Property Address 9581 Alcott Street, Los Angeles, CA
SITE DESCRIPTION
Number of Units 16
Year Built/Renovated 1971
Rentable Square Feet 26,975
Lot Size 0.31 acre(s)
Type of Ownership Fee Simple
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AERIAL PHOTOS
9581 ALCOTT STREET
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AERIAL PHOTOS
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UNIT 103
9581 ALCOTT STREET
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UNIT 103
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UNIT 301
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UNIT 301
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PHOTOS
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REGIONAL MAP
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LOCAL MAP
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AERIAL PHOTO
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Marcus & Millichap closes
more transactions than any other
brokerage firm.
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9581 ALCOTT STREET
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PROPERTY PHOTO
9581 ALCOTT STREET
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FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
9581 ALCOTT STREET
RENT ROLL SUMMARY
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FINANCIAL ANALYSIS
9581 ALCOTT STREET
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RENT ROLL DETAIL
FINANCIAL ANALYSIS
9581 ALCOTT STREET
OPERATING STATEMENT
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FINANCIAL ANALYSIS
9581 ALCOTT STREET
PRICING DETAIL
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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
$6.24 billion
total national
volume in 2018
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 1,678
debt and equity
financings
in 2018
ACQUISITION FINANCING
9581 ALCOTT STREET
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9581 ALCOTT STREET
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MARKET
COMPARABLES
9581 ALCOTT STREET
SALES COMPARABLES MAP
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9581 ALCOTT STREET
(SUBJECT)
1470 Rexford Dr
9500 W Olympic Blvd
1489 S Canfield Ave
9595 W Olympic Blvd
300 S Doheny Dr
815 S Shenandoah St
9617-9625 Charleville Blvd
SALES COMPARABLES
1
2
3
4
5
7
6
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PROPERTY NAME9581 ALCOTT STREET
SALES COMPARABLES
Avg. 3.00%
0.0
0.4
0.8
1.2
1.6
2.0
2.4
2.8
3.2
3.6
4.0
9581 AlcottStreet
1470Rexford Dr
9500 WOlympic
Blvd
1489 SCanfield
Ave
9595 WOlympic
Blvd
300 SDoheny Dr
815 SShenandoah
St
9617-9625Charleville
Blvd
Average Cap Rate
Avg. 20.33
0.00
2.40
4.80
7.20
9.60
12.00
14.40
16.80
19.20
21.60
24.00
9581 AlcottStreet
1470Rexford Dr
9500 WOlympic
Blvd
1489 SCanfield
Ave
9595 WOlympic
Blvd
300 SDoheny Dr
815 SShenandoah
St
9617-9625Charleville
Blvd
Average GRM
SALES COMPARABLES SALES COMPS AVG
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PROPERTY NAME9581 ALCOTT STREET
SALES COMPARABLES
Avg. $531.31
$0.00
$80.00
$160.00
$240.00
$320.00
$400.00
$480.00
$560.00
$640.00
$720.00
$800.00
9581 AlcottStreet
1470Rexford Dr
9500 WOlympic
Blvd
1489 SCanfield
Ave
9595 WOlympic
Blvd
300 SDoheny Dr
815 SShenandoah
St
9617-9625Charleville
Blvd
Average Price Per Square Foot
Avg. $547,059
$0
$80,000
$160,000
$240,000
$320,000
$400,000
$480,000
$560,000
$640,000
$720,000
$800,000
9581 AlcottStreet
1470Rexford Dr
9500 WOlympic
Blvd
1489 SCanfield
Ave
9595 WOlympic
Blvd
300 SDoheny Dr
815 SShenandoah
St
9617-9625Charleville
Blvd
Average Price Per Unit
SALES COMPARABLES SALES COMPS AVG
PROPERTY NAME
MARKETING TEAM
9581 ALCOTT STREET
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
Units Unit Type
Offering Price: $9,750,000 14 2+2
Price/Unit: $609,375 1 2+2.5 TH
Price/SF: $361.45 1 3+2
CAP Rate: 3.69%
GRM: 16.52
Total No. of Units: 16
Year Built: 1971
Underwriting Criteria
Income $572,676 Expenses $212,452
NOI $360,224 Vacancy ($17,656)
9581 ALCOTT STREET9581 Alcott Street, Los Angeles, CA, 90035
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Units Unit Type
Close Of Escrow: 8/30/2019 2 Studio 1 Bath
Sales Price: $14,000,000 3 1 Bdr 1 Bath
Price/Unit: $538,462 20 2 Bdr 2 Bath
Price/SF: $383.14 1 3 Bdr 2 Bath
CAP Rate: 3.32%
GRM: 17.71
Total No. of Units: 26
Year Built: 1969
1470 REXFORD DR1470 Rexford Dr, Los Angeles, CA, 90035
Units Unit Type
Sales Price: $7,475,000 2 Studio 1 Bath
Price/Unit: $467,188 14 1 Bdr 1 Bath
Price/SF: $663.27
CAP Rate: 2.49%
GRM: 21.95
Total No. of Units: 16
Year Built: 1948
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9500 W OLYMPIC BLVD9500 W Olympic Blvd, Beverly Hills, CA, 90212
PROPERTY NAME
MARKETING TEAM
9581 ALCOTT STREET
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
Units Unit Type
Close Of Escrow: 6/15/2018 1 Studio 1 Bath
Sales Price: $7,230,000 2 1 Bdr 1 Bath
Price/Unit: $482,000 11 2 Bdr 2 Bath
Price/SF: $363.32 1 3 Bdr 2 Bath
CAP Rate: 2.83%
GRM: 20.06
Total No. of Units: 15
Year Built: 1964
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1489 S CANFIELD AVE 1489 S Canfield Ave, Los Angeles, CA, 90035
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Units Unit Type
Close Of Escrow: 11/21/2018 12 1 Bdr 1 Bath
Sales Price: $6,388,888
Price/Unit: $532,407
Price/SF: $704.24
CAP Rate: 3.01%
GRM: 22.50
Total No. of Units: 12
Year Built: 1949
9595 W OLYMPIC BLVD9595 W Olympic Blvd, Beverly Hills, CA, 90212
Units Unit Type
Close Of Escrow: 4/23/2019 1 Studio 1 Bath
Sales Price: $2,860,000 4 1 Bdr 1 Bath
Price/Unit: $476,667 1 2 Bdr 1 Bath
Price/SF: $563.66
CAP Rate: 2.63%
Total No. of Units: 6
Year Built: 1946
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300 S DOHENY DR300 S Doheny Dr, Beverly Hills, CA, 90211
PROPERTY NAME
MARKETING TEAM
9581 ALCOTT STREET
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
Units Unit Type
Close Of Escrow: 8/7/2019 2 1 Bdr 1 Bath
Sales Price: $7,250,000 9 2 Bdr 2 Bath
Price/Unit: $557,692 2 3 Bdr 2 Bath
Price/SF: $339.42
CAP Rate: 3.33%
GRM: 17.73
Total No. of Units: 13
Year Built: 1971
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815 S SHENANDOAH ST815 S Shenandoah St, Los Angeles, CA, 90035
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Units Unit Type
Close Of Escrow: 8/5/2019 6 2 Bdr 2 Bath
Sales Price: $4,650,000
Price/Unit: $775,000
Price/SF: $702.10
CAP Rate: 3.42%
GRM: 22.00
Total No. of Units: 6
Year Built: 1934
9617-9625 CHARLEVILLE BLVD9617-9625 Charleville Blvd, Beverly Hills, CA, 90212
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9581 ALCOTT STREET
RENT COMPARABLES MAP
9581 ALCOTT STREET
(SUBJECT)
9319 Alcott St
9217 Alcott St
9812 Vidor Dr
1434 S Canfield Ave
9372 W Olympic Blvd.
463 South Rexford Dr
9315 Alcott St
1125 Cardiff Ave # 4
1109 Glenville Dr
4
7
8
9
11
20
12
14
15
16
17
13
18
10
4
7
8
9
1
2
3
5
6
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PROPERTY NAME9581 ALCOTT STREET
RENT COMPARABLES
33
AVERAGE RENT - MULTIFAMILY
Avg. $4,147
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
9581 AlcottStreet
9319Alcott St
9217Alcott St
9812Vidor Dr
1434 SCanfield
Ave
9372 WOlympic
Blvd.
463 SouthRexford Dr
9315Alcott St
1125CardiffAve # 4
1109Glenville
Dr
3 Bedroom
Avg. $3,633
$0
$400
$800
$1,200
$1,600
$2,000
$2,400
$2,800
$3,200
$3,600
$4,000
9581 AlcottStreet
9319Alcott St
9217Alcott St
9812Vidor Dr
1434 SCanfield
Ave
9372 WOlympic
Blvd.
463 SouthRexford Dr
9315Alcott St
1125CardiffAve # 4
1109Glenville
Dr
2 Bedroom
PROPERTY NAME
MARKETING TEAM
9581 ALCOTT STREET
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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YEAR BUILT: 1971
rentpropertyname1rentpropertyaddress1
Unit Type Units SF Rent Rent/SF
2+2 14 $2,995 $0.00
2+2.5 TH 1 $3,850 $0.00
3+2 1 $3,261 $0.00
Total/Avg. 16 $3,065
9581 ALCOTT STREET9581 Alcott Street, Los Angeles, CA, 90035
YEAR BUILT: 1970
1
Unit Type Units SF Rent Rent/SF
2 Bdr 2 Bath 1,200 $3,750 $3.13
Total/Avg. $3,750
9319 ALCOTT ST9319 Alcott St, Los Angeles, CA, 90035
2
YEAR BUILT: 1947
Unit Type Units SF Rent Rent/SF
2 Bdr 1.5 Bath $3,800
Total/Avg. $3,800
9217 ALCOTT ST9217 Alcott St, Los Angeles, CA, 90035
PROPERTY NAME
MARKETING TEAM
9581 ALCOTT STREET
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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YEAR BUILT: 1991
3
Unit Type Units SF Rent Rent/SF
2 Bdr 2 Bath 1,500 $3,500 $2.33
Total/Avg. $3,500
9812 VIDOR DR9812 Vidor Dr, Los Angeles, CA, 90035
YEAR BUILT: 1937
4
Unit Type Units SF Rent Rent/SF
2 Bdr 2 Bath 1,400 $3,400 $2.43
Total/Avg. $3,400
1434 S CANFIELD AVE1434 S Canfield Ave, Los Angeles, CA, 90035
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YEAR BUILT: 1936
Unit Type Units SF Rent Rent/SF
2 Bdr 2 Bath $3,850
Total/Avg. $3,850
9372 W OLYMPIC BLVD.9372 W Olympic Blvd., Beverly Hills, CA, 90212
PROPERTY NAME
MARKETING TEAM
9581 ALCOTT STREET
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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YEAR BUILT: 1960
6
Unit Type Units SF Rent Rent/SF
2 Bdr 2 Bath $3,495
Total/Avg. $3,495
463 SOUTH REXFORD DR463 South Rexford Dr, Beverly Hills, CA, 90212
YEAR BUILT: 2007
7
Unit Type Units SF Rent Rent/SF
3 Bdr 2.5 Bath $3,995
Total/Avg. $3,995
9315 ALCOTT ST9315 Alcott St, Los Angeles, CA, 90035
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YEAR BUILT: 1956
Unit Type Units SF Rent Rent/SF
3 Bdr 2 Bath $4,150
Total/Avg. $4,150
1125 CARDIFF AVE # 41125 Cardiff Ave, Los Angeles, CA, 90035
PROPERTY NAME
MARKETING TEAM
9581 ALCOTT STREET
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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YEAR BUILT: 1936
9
Unit Type Units SF Rent Rent/SF
3 Bdr 1.5 Bath $4,295
Total/Avg. $4,295
1109 GLENVILLE DR1109 Glenville Dr, Los Angeles, CA, 90035