OFFERING MEMORANDUM Prime Location $895,000€¦ · lyon stahl investment real estate •4 y...

$895,000OFFERING MEMORANDUM

Prime Location

550 W 41st Dr | Los Angeles, CA 90037

STEPHEN TAKAHASHI

(310) 403-9145

[email protected]

DRE #01944770

Exclusively Presented By:

JOHNNIE STIEGLER

(310) 447-2213

[email protected]

DRE #01981597

550 W 41st Dr

Los Angeles, CA 90037

LYON STAHL INVESTMENT REAL ESTATE • 2

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TABLE OF CONTENTS

THE PROPERTY 3

Property Highlights / Overview

Property Photographs

THE FINANCIALS 8

Financial Summary

COMPARABLES 10

Market Comparables

THE LOCATION 13

County Overview

City Projects

MEET THE TEAM 19

DISCLAIMER AND CONFIDENTIALITY AGREEMENT 21

OFFERING MEMORANDUM

201 38th St

Manhattan Beach, CA 90266


PROPERTY

OVERVIEW

550 W 41st Dr



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PROPERTY OVERVIEW

PROPERTY SUMMARY

PRICE $895,000

ADDRESS 550 W 41st Dr

CITY, STATE, ZIP Los Angeles, CA 90037

COUNTY Los Angeles

NUMBER OF UNITS 5

YEAR BUILT 1956/1921

BUILDING SIZE 3,120

LOT SIZE 6,763

CURRENT CAP RATE 5.17%

PRO FORMA CAP RATE 7.62%

CURRENT GRM 12.50

PRO FORMA GRM 9.50

PRICE / BLDG SF $286.86

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PROPERTY OVERVIEW

INVESTMENT HIGHLIGHTS

• Unit Mix:

o (1) 2 Bedroom / 1 Bath

o (4) 1 Bedroom / 1 Bath

• Less than one mile from the LA Memorial Coliseum

• Market Cap: 7,62%

• Market GRM: 9.50

INVESTMENT SUMMARY

Stephen Takahashi of Lyon Stahl is pleased to present 550 41stDr in Los Angeles. This is a great value add deal near all thenew developments happening near Exposition Park, such asthe Lucas Museum of Narrative Art, the $315 millionrenovation of the Coliseum, and the Banc of CaliforniaStadium! This 5-unit apartment has a great unit mix of four 1bedroom/1 bath units and one 2 bedroom/ 1 bath unit. Thesubject property is 3,120 rentable sq ft, sitting on a 6,763 sq ftRD 1.5 lot. The property will be delivered fully occupied.

550 W 41st Dr



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PROPERTY PHOTOGRAPHSLOWER UNIT

OFFERING MEMORANDUM

201 38th St



FINANCIAL

OVERVIEW

550 W 41st Dr



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FINANCIAL OVERVIEW

EXPENSE SUMMARY

Current Actuals Market Pro Forma

Real Estate Taxes and Special

Assessment Tax$11,188 $11,188

Insurance $0.35/sqft $1,092 $1,092

Utilities $800/unit/yr $4,000 $4,000

Maintenance/Repairs 3% $2,148.12 $2,148.12

TOTAL EXPENSES $23,208 $23,208

Expense Per Unit $4,642 $4,642

Expense Per SF $3.43 $3.43

NET OPERATING INCOME $46,248 $46,248

Pre-Tax Cash Flow 3.72% $7,908 $7,908

Principal Reduction $11,112 $11,112

TOTAL RETURN 7.87% $19,020 $19,020

SCHEDULED RENT SUMMARY

Unit Type No. Of Units Current Rent Market Rent

1-Bed / 1-Bath 2 $1,300 $1,500

1-Bed / 1-Bath 1 $1,500 $1,500

1-Bed / 1-Bath 1 $850 $1,500

2-Bed / 1-Bath 1 $1,017 $1,850

SCHEDULED RENT SUMMARY

Current Actuals Market Rent

Gross Scheduled Income $71,604 $94,200

Less Vacancy 3% $2,148 $2,826

Gross Operating Income $69,456 $91,374

PROPERTY SUMMARY

ADDRESS 550 W 41st Dr, Los Angeles, CA 90037

APN

NUMBER OF UNITS 5

YEAR BUILT 1956/1921

BUILDING SIZE 3,120 SF

LOT SIZE 6,763 SF

CURRENT CAP RATE 5.17%

CURRENT GRM 12.50

MARKET CAP RATE 7.62%

MARKET GRM 9.50

PRICE PER UNIT $179,000

PRICE PER SF $286.86

PRICING SUMMARY

PRICE $895,000

FINANCIAL SUMMARY

LOAN AMOUNT $653,350

DOWN PAYMENT (27%) $241,659

INTEREST RATE 4.2%

MONTHLY PAYMENT $3,195

ANNUAL PAYMENT $38,340

LOAN-TO-VALUE 73%

AMORTIZATION 30-YRS

LOAN TERM 5-YR FIXED

DEBT CONVERAGE RATIO 1.21

PROPOSED/EXISTING PROPOSED

OFFERING MEMORANDUM

201 38th St



COMPARABLES

550 W 41st Dr



Address Price Units Year Built Building Size Price/Unit Price/SF

874 W 40th PlLos Angeles

CA 90037$850,000 5 1917 6,451 $170,000 $164.25

831 W 43rd StLos Angeles

CA 90037$1,150,000 8 1961 5,298 $143,125 $217.06

807 W 43rd StLos Angeles

CA 90037$1,815,000 8 1925 8,464 $231,250 $214.44

957 W 45th StLos Angeles

CA 90037$880,000 7 1924 3,632 $139,268 $242.29

871 W 47th StLos Angeles

CA 90037$985,000 6 1928 4,315 $166,667 $228.27

Averages $1,136,000 N/A N/A 5,632 $170,062 $213.62

550 W 41st DrLos Angeles

CA 90037$895,000 5 1956/1921 3,120 $179,000 $286.86

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MARKETCOMPARABLES

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550 W 41st Dr



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MARKETCOMPARABLES MAP

OFFERING MEMORANDUM

201 38th St



LOCATION

550 W 41st Dr



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LOCAL MAP

550 W 41st Dr



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AERIAL MAP

550 W 41st Dr



COUNTY OVERVIEW

Los Angeles

The most heavily populated county in the country is Los Angeles County with

approximately 9.9 million people, including about 1 million that live in

unincorporated areas of the county. The metropolis - formed by the six

neighboring counties of Los Angeles, Ventura, Kern, San Bernardino, Riverside,

and Orange - is home to approximately 19 million residents. Los Angeles County

is home to one of the most educated labor pools in the country and offers a

labor force of more than 4.7 million, of which more than 1.5 million are college

graduates. Los Angeles County has the largest population of any county in the

nation, exceeded only by eight states. According to the United States

Conference of Mayors, Los Angeles County boasts a GDP among the twenty

largest in the world. Los Angeles County’s continued economic growth, in

contrast to other areas of the state and nation, is due to its diversified economy

and abundant, well-trained workforce.

Los Angeles County is well located on the Southern Coast of the California, and

covers 4,061 square miles, including the San Clemente and Santa Catalina

islands. The County is comprised of approximately 88 vibrant and diverse cities

hosting more than 244,000 business establishments— the greatest

concentration in the state. Los Angeles County has a Gross Domestic Product

(GDP) of approximately $446 billion - placing it among the top 20 economies in

the world. The combined GDP of Los Angeles and its five surrounding

neighboring counties places it in the top 10. California is generally considered

to be in the top five.

If Los Angeles County were its own nation, its economy would be the 18th

largest in the world. It is home to more than 244,000 businesses, with more

minority and women owned businesses than any other in the nation and is the

nation’s top international trade center and manufacturing center. Los Angeles

is recognized worldwide as a leader in entertainment, health sciences, business

services, aerospace and international trade. Because the Los Angeles area is so

large and diverse, it has something to offer to everyone. While Hollywood and

the Los Angeles beach culture are part of our collective image of Los Angeles,

the city also has more museums than any other city and some of the best

hotels in the world are located in Los Angeles.

County Highlights• Los Angeles County is the world’s 18th largest economy.

• Los Angeles part of the "Tech Coast" and is regarded as the of

the main entrepreneurial regions of the world. It has

approximately 200,000 small businesses, which is twice as many

small businesses as can be found in any other region of the

United States.

• If Los Angeles' five county area were a state, it would be the

fourth largest in the United States.

• Los Angeles has more than 80 stage theaters and 300 museums,

more than any other U.S city.

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CITY PROJECTS

*Rendering courtesy of JLL

Lucas Museum of Narrative Arts

Exposition Park is already a destination for museum-goers. Now, George Lucas is adding to the mix with his museum devoted to thenarrative arts. The futuristic-looking building will be designed by MAD architects will house art focused “on the power of a single image totell a story, inspire emotion, or encapsulate universal truths.” Its scheduled to open in 2021.

Lucas Museum of Narrative Arts

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Source: Tbrnews.com

Banc of California Stadium

Another big addition to Exposition Park: The shiny new home of the Los Angeles Football Club in Exposition Park opened just this spring.The open-air stadium holds 22,000 seats and offers some sweet city views. It also boast an impressive food line-up, including Koreatown’sBeer Belly

Banc of California Stadium

OFFERING MEMORANDUM

201 38th St



THE TEAM

THE TEA

M STIEGLER TAKAHASHI GROUP


JOHNNIE STIEGLERVice President

STEPHEN TAKAHASHIVice President

Stephen Takahashi is a Vice President at Lyon Stahl InvestmentReal Estate. He provides the highest level of service tomultifamily owners and investors with superior market

knowledge and can deliver valuation and analysis of markettrends. He and his team have expertise in sales, acquisition,

development, finance and valuation, which extends toconventional apartment properties, condo development and

conversions, single family, student housing and residentialincome development land.

He is a knowledgeable, results-driven broker who is backed bythe most innovative and scalable technology the commercial

real estate industry has to offer. Stephen and his team canprovide clients with unparalleled market information,

brokerage advisory, acquisition, disposition and financialguidance to help achieve the highest level of results. If

expanding your portfolio is the objective, he can help youidentify, exchange and acquire properties which meet or

exceed your investment goals.

Johnnie grew up in Manhattan Beach, California and has consistently been one of the top producers at Lyon Stahl, year

after year. He graduated from Northwood University in West Palm Beach Florida with a degree in business. Upon graduating, he

returned to Southern California and worked as a sales and finance manager at his family’s automobile dealership (Auto Stiegler Mercedes Benz of Encino, California) a well-known

business that existed for more than 50 years.

After deciding to follow his passion in real estate, Johnnie joined Lyon Stahl and was awarded Top Producer his first year. Johnnie has always gone to great lengths, doing everything possible to

help his clients succeed. He maintains a steadfast dedication to effectively guiding his clients through the process of reaching their real estate goals. He specializes in selling multifamily investment

properties in the Beach Cities, Westside, and throughout the South Bay communities.

THE TEA

M TEAM STIEGLER


LUCAS HERBSTLeads Coordinator

SEAN MACNAUGHTONTransaction Coordinator

DUSTIN CHANGEDirector of Operations

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.

DISCLAIMER & CONFIDENTIALITY AGREEMENT


EXCLUSIVELY MARKETED BY

JOHNNIE STIEGLER

(310) 447-2213

[email protected]

BRE # 01981597

STEPHEN TAKAHASHI

(310) 403-9145

[email protected]

BRE # 01944770

OFFERING MEMORANDUM Prime Location $895,000€¦ · lyon stahl investment real estate •4 y...

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