TWO 8-UNIT APARTMENT BUILDINGS IN GARDENA · Two 8-Unit Apartment Buildings in Gardena Investment...

Brett Lyon | 310.780.1899 [email protected] TWO 8-UNIT APARTMENT BUILDINGS IN GARDENA

819 & 825 165th Pl.Gardena, CA 90247

Two 8-Unit Apartment Buildings inGardena

INVESTMENT SUMMARY

Investment Overview

Regional Map

AREA OVERVIEW

Local Map

City Overview

County Overview

Aerial Map

PROPERTY DESCRIPTION

Property Details

3D Map

FINANCIALS

Offering Summary

Net Income Statment

Rent Roll

Unit Mix

COMPARABLES

Sales Comparable Map

Sales Comparables

Rental Comparable Map

Rental Comparables

On Market Comparable Map

On Market Comparables

EXCLUSIVELY MARKETED BY :

Lyon Stahl Investment Real Estate

Brett Lyon

310.780.1899 [email protected]

Woody Stahl

[email protected]

Two 8-Unit Apartment Buildings in Gardena

Investment Summary

819 and 825 165th Pl.Gardena, CA 90247

The information above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its accuracy.

Investment SummaryPrice $3,450,000Cap Rate 4.58%NOI $157,963.00GRM 13.37Units 16Occupancy 100.00%Building Size 12,588 SFPrice per Square Foot $274.07Land Area 12,601 Sq. FeetOwnership Fee Simple

Investment Highlights

(2) 2-Bed/2-Bath, (10) 2-Bed/1-Bath & (4) 1-Bed/1-Bath Units●

Incredible Investment Opportunity with a 4.58% CAP and 13.37 GRM●

$215,625/ Unit with Great In Place Income●

Located Minutes Away From 110 & 405 Freeway, StubHub Center, and CSU●

Dominguez Hills

Investment Description

Lyon | Stahl is excited to present 819 & 825 165th Pl, (2) 8-Unit ApartmentBuildings located in the heart of Gardena. These side-by-side properties havea unit mix of (2) 2-Bed/2-Bath, (10) 2-Bed/1-Bath and (4) 1-Bed/1-Bath Units.

The entire property is gated for additional privacy and also features on-sitelaundry facilities adjacent to each building. The property is subject to rentcontrol with great in place income and potential for additional rent growth!With a 4.58% CAP and 13.37 GRM, this is a perfect investment opportunityfor anyone looking to maximize cash flow and acquire assets in one of theup-an-coming cities in the South Bay.


Investment Summary



Regional Map


Area Overview



Local Map


Area Overview



Area Overview

County OverviewThe most heavily populated county in the country is Los Angeles County withapproximately 9.9 million people, including about 1 million that live inunincorporated areas of the county. The metropolis - formed by the sixneighboring counties of Los Angeles, Ventura, Kern, San Bernardino,Riverside, and Orange - is home to approximately 19 million residents. LosAngeles County is home to one of the most educated labor pools in thecountry and offers a labor force of more than 4.7 million, of which more than1.5 million are college graduates. Los Angeles County has the largestpopulation of any county in the nation, exceeded only by eight states.According to the United States Conference of Mayors, Los Angeles Countyboasts a GDP among the twenty largest in the world. Los Angeles County’scontinued 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 SantaCatalina islands. The County is comprised of approximately 88 vibrant anddiverse cities hosting more than 244,000 business establishments— thegreatest concentration in the state. Los Angeles County has a Gross DomesticProduct (GDP) of approximately $446 billion - placing it among the top 20economies in the world. The combined GDP of Los Angeles and its five

surrounding neighboring counties places it in the top 10. California is generallyconsidered to be in the top five.

If Los Angeles County were its own nation, its economy would be the 18thlargest in the world. It is home to more than 244,000 businesses, with moreminority and women owned businesses than any other in the nation and is thenation’s top international trade center and manufacturing center. Los Angelesis recognized worldwide as a leader in entertainment, health sciences,business services, aerospace and international trade. Because the LosAngeles 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 collectiveimage of Los Angeles, the city also has more museums than any other cityand some of the best hotels in the world are located in Los Angeles.

Over the years, Los Angeles County has developed a diverse economic base,supported by a number of Fortune 500 companies with headquarters in thearea, including Hilton Hotels, Walt Disney, Occidental Petroleum, DirecTVGroup, Northrop Grumman, Computer Sciences, KB Home, Health Net, Mattel,and Avery Dennison. Key factors positively impacting the region’s economicposition include increased local media production by the entertainmentindustry and a continuing expansion of import flows. Moreover, growth inaerospace, homeland security and in the private business sector havecontributed positively to the County's economy. Los Angeles' well educatedlabor pool, many universities, wonderful climate, and world class infrastructurewill enable Greater Los Angeles to continue to be a world leader in economicand cultural significance.

County HighlightsLos 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 smallbusinesses, which is twice as many small businesses as can be found in anyother 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.


Area Overview



Aerial Map


Property Description



Property DetailsAddress 819 and 825 165th Pl. Gardena, CA 90247 Square Footage 12,588 SFLand Area 12,601 Sq. FeetYear Built 1963Assessors Parcel Number 6121-007-026 & 6121-007-025

SiteZoning LAR3Number of Buildings 2Number of Stories 2Parking Carport/Driveway


Financials



Financial

Offering Summary

Price $3,450,000Building Size 12,588 SFOwnership Fee SimpleLand Area 12,601 Sq. FeetNumber of Units 16Number of Stories 2Year Built 1963Parking Carport/DrivewayOccupancy 100.00% Price per Unit $215,625.00Price per Square Foot $274.07Current CAP Rate 4.58%Pro Forma Cap Rate 5.66%Current GRM 13.37Pro Forma GRM 11.60NOI $157,963Pro Forma NOI $195,404

FinancingLoan Type New/ProposedLoan Amount $2,242,500Down Payment $1,207,500Interest Rate 3.80%Amortization Period 30 YearsAnnual Payment $125,389


Financials



Net Income Statement

Current AnnualIncome

Proforma AnnualIncome

REVENUES Gross Potential Rent $258,108 $297,480 Less: Vacancy Rate (Gardena) 13,117 15,084

Effective Scheduled Rent 244,991 282,396

Laundry 4,164 4,200

Effective Gross Income $249,155 $286,596

OPERATING EXPENSES Real Estate Taxes 43,125 43,125 Insurance 4,410 4,410 Utilities 13,600 13,600 Management Fee 15,740 15,740 Maintenance 13,117 13,117 Landscaping 1,200 1,200

TOTAL EXPENSES $91,192 $91,192

NET OPERATING INCOME $157,963 $195,404

Debt Service $125,389 $125,389 NET CASH FLOW AFTER DEBT SERVICE $32,574 $70,015 Principal Reduction $40,881 $40,881 TOTAL RETURN 6.08% 9.18% Expenses Per SF $7.24 $7.24% of EGR 36.60% 31.82%


Financials



Rent Roll

Unit Information Lease Rental Rates

Unit No Unit TypeApp. SquareFootage

Status Move In DateCurrentMonthly Rent

PSFPro FormaMonthly Rent

PSF Loss to Lease

1B 2 BR 2 BTH - Occupied -- -- ---- $ 1,033.00 - $ 1,695.00 - $ 662.00

1A 2 BR 2 BTH - Occupied -- -- ---- $ 1,650.00 - $ 1,695.00 - $ 45.00

2B 2 BR 1 BTH - Occupied -- -- ---- $ 1,364.00 - $ 1,650.00 - $ 286.00

2A 2 BR 1 BTH - Occupied -- -- ---- $ 1,650.00 - $ 1,650.00 - $ 0.00

3B 2 BR 1 BTH - Occupied -- -- ---- $ 1,650.00 - $ 1,650.00 - $ 0.00

3A 2 BR 1 BTH - Occupied -- -- ---- $ 1,365.00 - $ 1,650.00 - $ 285.00

4B 2 BR 1 BTH - Occupied -- -- ---- $ 1,325.00 - $ 1,650.00 - $ 325.00

4A 2 BR 1 BTH - Occupied -- -- ---- $ 1,650.00 - $ 1,650.00 - $ 0.00

5B 2 BR 1 BTH - Occupied -- -- ---- $ 1,117.00 - $ 1,650.00 - $ 533.00

5A 2 BR 1 BTH - Occupied -- -- ---- $ 1,390.00 - $ 1,650.00 - $ 260.00

6B 2 BR 1 BTH - Occupied -- -- ---- $ 1,325.00 - $ 1,650.00 - $ 325.00

6A 2 BR 1 BTH - Occupied -- -- ---- $ 1,365.00 - $ 1,650.00 - $ 285.00

7B 1 BR 1 BTH - Occupied -- -- ---- $ 1,225.00 - $ 1,225.00 - $ 0.00

7A 1 BR 1 BTH - Occupied -- -- ---- $ 1,195.00 - $ 1,225.00 - $ 30.00

8B 1 BR 1 BTH - Occupied -- -- ---- $ 1,010.00 - $ 1,225.00 - $ 215.00

8A 1 BR 1 BTH - Occupied -- -- ---- $ 1,195.00 - $ 1,225.00 - $ 30.00

16 Units TOTALS 0 Occ:16Vac:0 $21,509.00 $24,790.00 $3,281.00


Financials



Unit Mix

Unit Info Occupancy Square Footage Current Monthly Rent Pro Forma Monthly Rent

Numberof Units

Unit Type Occ Vac % OccAverageUnit SF

Total UnitSF

AVG Low High TotalAVGPSF

AVG TotalAVGPSF

VacancyLoss

2 2 BR 2 BTH 2 0 100% - - $ 1,342 $ 1,033 $ 1,650 $2,683 - $1,695 $3,390 - $0

10 2 BR 1 BTH 10 0 100% - - $ 1,420 $ 1,117 $ 1,650 $14,201 - $1,650 $16,500 - $0

4 1 BR 1 BTH 4 0 100% - - $ 1,156 $ 1,010 $ 1,225 $4,625 - $1,225 $4,900 - $0

16 TOTALS 16 0 100.00% 0 SF $21,509 $24,790 $0

CONFIDENTIALITY AND DISCLAIMER

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 notbe 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 strictestconfidence, 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 Memorandumhas 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 limitedto 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 governmentalrequirements, 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 orabsence 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 businessprospects of any tenant or any tenant’s plans or intentions to continue occupancy of the Property. The Memorandum has selected information relating to the 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 andan 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, marketconditions, 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 duediligence 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’sobligations therein have been satisfied or waived.

Exclusively Marketed By:

Lyon Stahl Investment Real Estate

Lyon Stahl

310.425.9838

[email protected]

TWO 8-UNIT APARTMENT BUILDINGS IN GARDENA · Two 8-Unit Apartment Buildings in Gardena Investment...

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