1310 N Gardner Street - images2.loopnet.com · 1310 N Gardner Street. 1310 N Gardner Street LOS ANGELES, CA PRICING AND FINANCIAL ANALYSIS. Price $6,000,000 Down Payment 56% / $3,350,000

LOS ANGELES, CA

1310 N Gardner Street

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The 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.

LOS ANGELES, CA


Marcus & 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 YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 RENT COMPARABLES

Section 5 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS


1310 N Gardner StreetLOS ANGELES, CA

PRICING AND FINANCIAL ANALYSIS

Price $6,000,000Down Payment 56% / $3,350,000

Price/Unit $375,000

Price/SF $409.36

Number of Units 16

Gross Square Feet 14,657

Number of Buildings One

Number of Stories Two

Year Built 1957

Lot Size 13,607

Vital DataCAP Rate - Current 3.00%

GIM - Current 18.76

Net Operating Income - Current $179,767

Net Cash Flow After Debt Service - Current 2.3% / $76,152

Total Return - Current 2.3% / $76,152

CAP Rate - Pro Forma 5.59%

GIM - Pro Forma 12.33

Net Operating Income - Pro Forma $335,125

Net Cash Flow After Debt Service - Pro Forma 6.9% / $231,510

Total Return - Pro Forma 6.9% / $231,510

Unit MixNo. ofUnits

UnitType

Approx.Square Feet

8 1 Bdr 1 Bath N/A

8 2 Bdr 2 Bath N/A

16 Total

Major EmployersCompany Local

Employees

Disney 14,997

Southern California / Hawa Reg 13,000

Walt Disney Company 8,833

Victory Studio 5,000

Mental Health California Dept 4,000

Paramount Pictures 3,511

Project Boat Holdings LLC 3,174

Farmers Insurance 3,120

SBE 3,002

Fire Dept-Station 61 3,000

Platinum Equity 2,575

Fire Insurance Exchange 2,300

Demographics

1

PRICING AND FINANCIAL ANALYSIS1310 N Gardner StreetLOS ANGELES, CA

1-Mile 3-Miles 5-Miles

2014 TotalPopulation

52,437 309,184 872,903

2019 TotalPopulation

52,400 311,781 879,817

2014 TotalHouseholds

31,877 157,328 386,286

2019 TotalHouseholds

32,191 159,998 392,525

Median HH Income $42,478 $49,897 $44,811

Per Capita Income(based on TotalPopulation)

$42,858 $45,621 $36,281

Average (Mean) HHIncome

$70,097 $89,062 $81,409

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. Allrights reserved.

OFFERING SUMMARY

Interest only for next 5 Years. Loan Must Be Assumed

Existing FinancingLoan Amount $2,650,000

Loan Type Assumption

Interest Rate 3.910%

Amortization 30 Years

Lender Name Chase

Proposed Financing

First Trust DeedLoan Amount $2,650,000

Interest Rate 3.91%


Debt Coverage Ratio 1.73

2



FINANCING

1B1B: 50%2B2B: 50%

No. ofUnits

UnitType

Approx.Square Feet

CurrentRents

MonthlyIncome

Pro Forma Rents MonthlyIncome

8 1 Bdr 1 Bath N/A $1,444 $11,556 $2,200 $17,600

8 2 Bdr 2 Bath N/A $1,868 $14,941 $2,850 $22,800

16 TOTAL $26,497 $40,400

Unit Mix Unit Rent & Rent/SF

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

1B1B 2B2B

3



UNIT MIX

UnitNumber

UnitType

UnitSF

CurrentRent

Rent/SF

AskingRent

Rent/SF

Parking Storage

1 2 Bdr 2 Bath $1,697 $2,850

2 1 Bdr 1 Bath $982 $2,200

3 1 Bdr 1 Bath $1,904 $2,200

4 2 Bdr 2 Bath $1,151 $2,850

5 2 Bdr 2 Bath $1,965 $2,850

6 1 Bdr 1 Bath $1,290 $2,200

7 1 Bdr 1 Bath Manager $1,132 $2,200

8 2 Bdr 2 Bath $2,895 $2,850

9 2 Bdr 2 Bath $1,819 $2,850

10 1 Bdr 1 Bath $1,224 $2,200

11 1 Bdr 1 Bath $2,085 $2,200

12 2 Bdr 2 Bath $1,725 $2,850

14 2 Bdr 2 Bath $1,968 $2,850

15 1 Bdr 1 Bath $1,036 $2,200

16 1 Bdr 1 Bath $1,904 $2,200

17 2 Bdr 2 Bath $1,721 $2,850

TOTAL VACANT $0 $0

16 TOTAL OCCUPIED $26,498 $40,400

16 TOTAL $26,498 $40,400

4



RENT ROLL

Income Current Per Unit Pro Forma Per UnitGROSS POTENTIAL RENT $317,964 $19,873 $484,800 $30,300

Other Income

Laundry Income $1,920 $120 $1,920 $120

Total Other Income $1,920 $120 $1,920 $120

GROSS POTENTIAL INCOME $319,884 $19,993 $486,720 $30,420

Vacancy/Collection Allowance (GPR) 3.0% / $9,539 $596 3.0% / $14,544 $909

EFFECTIVE GROSS INCOME $310,345 $19,397 $472,176 $29,511

ExpensesReal Estate Taxes (1.1930%) $71,580 $4,474 $71,580 $4,474

Insurance $8,282 $518 $8,282 $518

Utilities $9,659 $604 $9,659 $604

Rubbish $2,500 $156 $2,500 $156

Repairs & Maintenance $13,653 $853 $13,653 $853

Landscaping $1,500 $94 $1,500 $94

On-Site Payroll $5,760 $360 $5,760 $360

Management Fee 4.0% / $12,414 $776 4.0% / $18,887 $1,180

Misc and Reserves $4,000 $250 $4,000 $250

Pool $1,230 $77 $1,230 $77

TOTAL EXPENSES $130,578 $8,161 $137,051 $8,566

Expenses per SF $8.91 $9.35

% of EGI 42.1% 29.0%

NET OPERATING INCOME $179,767 $11,235 $335,125 $20,945

Total Number of Units: 16

Total Area (Gross): 14,657 SF

5



INCOME & EXPENSES

****Tenant cost recovery program has been submitted to the city and is in processing. Buyer to do own investigations. Please

call listing agent for more details

No. ofUnits

UnitType

Approx.Square Feet

CurrentRents

Rent/SF

MonthlyIncome

Pro FormaRents

MonthlyIncome

8 1 Bdr 1 Bath N/A $1,444 N/A $11,556 $2,200 $17,600

8 2 Bdr 2 Bath N/A $1,868 N/A $14,941 $2,850 $22,800

16 Total/Wtd. Avg. $26,497 $40,400

Loan Amount $2,650,000Interest Rate 3.91%


Annualized Operating Data

Income Current Pro FormaGross Potential Rent $317,964 $484,800

Other Income $1,920 $1,920

Gross Potential Income $319,884 $486,720

Less: Vacancy/Deductions (GPR) 3.0% / $9,539 3.0% / $14,544

Effective Gross Income $310,345 $472,176

Less: Expenses $130,578 $137,051

Net Operating Income $179,767 $335,125

Net Cash Flow Before Debt Service $179,767 $335,125

Debt Service $103,615 $103,615

Debt Coverage Ratio 1.73 3.23

Net Cash Flow After Debt Service 2.3% / $76,152 6.9% / $231,510

Total Return 2.3% / $76,152 6.9% / $231,510


Los Angeles, CA 90046

Price $6,000,000

Down Payment 56% / $3,350,000

Number of Units 16

Price/Unit $375,000


Price/SF $409.36

CAP Rate - Current 3.00%

CAP Rate- Pro Forma 5.59%

GIM - Current 18.76

GIM- Pro Forma 12.33

Year Built 1957

Lot Size 13,607

Location

FinancingExpensesReal Estate Taxes $71,580 $71,580

Insurance $8,282 $8,282

Utilities $9,659 $9,659

Rubbish $2,500 $2,500

Repairs & Maintenance $13,653 $13,653Landscaping $1,500 $1,500

On-Site Payroll $5,760 $5,760

Management Fee $12,414 $18,887

Misc and Reserves $4,000 $4,000Pool $1,230 $1,230

Total Expenses $130,578 $137,051

Expenses/unit $8,161 $8,566Expenses/SF $8.91 $9.35% of EGI 42.08% 29.03%

Scheduled Income

Loan information is time sensitive and subject tochange. Contact your local Marcus & MillichapCapital Corporation representative.

6



FINANCIAL OVERVIEW


PROPERTY DESCRIPTION

Marcus & Millichap is pleased to present an 16 unit apartment building on Gardner Street in prime Hollywood, California. Located in the center of Hollywood, 1310 N Gardner Street is a perfect location for a tenant to embrace the Hollywood lifestyle.

Built in 1957 and subject to rent control, the property consists of Eight (8) One Bedroom/One Bathroom units and Eight (8) Two Bedroom/Two Bathroom Units. Tenants are attracted to the property given the various amenities offered which include large spacious units, secured access, covered parking, on-site laundry, and an open courtyard with a pool.

The subject property is located in Hollywood which is also known as the Heart of Los Angeles. Hollywood is a city known worldwide and is home to countless production and film companies. The entertainment options, dining establishments, and shopping outlets are endless. Conveniently located in between Fountain Avenue and Sunset Boulevard, the property is just minutes to Runyon Canyon, the Laugh Factory, the Hollywood Bowl, the Walk of Fame, the Chinese Theater and many other places. Various other attractions include the Hollywood and Highland Center, The Grove, Sunset Plaza, and the Beverly Center.

While the current owners have been successful in achieving reasonable rents, there is still significant upside in rental income. There is still opportunity to create significantly higher income by completing the rehabs on some of the interiors and moving rents to market as the units turnover.

1310 North Gardner Street is an excellent opportunity for an investor looking to purchase a pride of ownership apartment complex in the heart of Hollywood with significant upside in the rents.

****Seismic Retrofitting (Approx $110,000) has been completed and the owners are currently working on getting the tenant Cost Recovery approved by the city. *****Brand new roof put on in 2018 (Approx $26,000)

Investment Highlights

■ 16 Units Built in 1957

■ Seismic Retrofitting Completely Done and Brand New Roof

■ Located in the Heart of Hollywood Located Just South ofSunset

■ Walking Distance to Many Entertainment, Shopping, andDining Outlets

■ Secured Access, 24 Parking Spaces, and a Large OpenCourtyard with a Pool

■ Large Lot Totaling 13,607 Square Feet

■ On-Site Laundry

■ Significant Upside in Rents

8

PROPERTY DESCRIPTION1310 N Gardner StreetLOS ANGELES, CA


INVESTMENT OVERVIEW

The Offering

Property Address 1310 N Gardner Street


Assessor's Parcel Number 5550-023-004

Zoning LAR3

Site Description

Number of Units 16

Number of Buildings One

Number of Stories Two

Year Built 1957


Lot Size 13,607

Parking 24 Parking Spaces (18 Tandem/6 Single)

Utilities

Water Owner

Phone Tenant

Electric Tenant

Gas Tenant

9



PROPERTY SUMMARY

Common Area Amenities

Unit Amenities

■ Secured Intercom Entrance

■ 24 Parking Spaces (18 Tandem/6 Single)

■ Open Courtyard with Pool

■ On-Site Laundry Facility

■ Spacious Units

10



AMENITIES

11



PROPERTY PHOTOS

12



PROPERTY PHOTOS

Local Map Regional Map

13



AREA MAPS

14



AERIAL PHOTO


RECENT SALES

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Subject 7705Hampton

Ave

1280N

LaurelAve

1400N

GardnerSt

7969Norton

Ave

1330N

MartelAve

1205N

HayworthAve

1016N

CursonAve

2542N

BeachwoodDr

2062Argyle

Ave

Average GRM

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

Subject 7705Hampton

Ave

1280N

LaurelAve

1400N

GardnerSt

7969Norton

Ave

1330N

MartelAve

1205N

HayworthAve

1016N

CursonAve

2542N

BeachwoodDr

2062Argyle

Ave

Average Cap Rate

16

RECENT SALES1310 N Gardner StreetLOS ANGELES, CA


CAP RATE AND GRM

Average Price per Square Foot

Average Price per Unit

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

Subject 7705Hampton

Ave

1280N

LaurelAve

1400N

GardnerSt

7969Norton

Ave

1330N

MartelAve

1205N

HayworthAve

1016N

CursonAve

7705Romaine

St

2542N

BeachwoodDr

2062Argyle

Ave

0

40,000

80,000

120,000

160,000

200,000

240,000

280,000

320,000

360,000

400,000

Subject 7705Hampton

Ave

1280N

LaurelAve

1400N

GardnerSt

7969Norton

Ave

1330N

MartelAve

1205N

HayworthAve

1016N

CursonAve

7705Romaine

St

2542N

BeachwoodDr

2062Argyle

Ave

17



PRICE PER SF AND PRICE PER UNIT

1)2)3)4)5)6)7)8)9)

10)

1310 N Gardner Street7705 Hampton Ave1280 N Laurel Ave1400 N Gardner St7969 Norton Ave1330 N Martel Ave1205 N Hayworth Ave1016 N Curson Ave7705 Romaine St2542 N Beachwood Dr2062 Argyle Ave

18



RECENT SALES MAP

No. of Units: 25 Units Unit Type

Year Built: 1950 3 Single 1 Bath

Sale Price: $8,005,000 22 1 Bdr 1 Bath

Price/Unit: $320,200

Price/SF: $438.00

CAP Rate: 3.85%

GRM: 16.01

7705 Hampton AveWest Hollywood, CA 90046




Price/Unit: $368,333 6 2 Bdr 1 Bath

Price/SF: $378.00 6 2 Bdr 2 Bath

CAP Rate: 3.01% 9 3 Bdr 2 Bath

GRM: 18.25

Close of Escrow: 1/3/2018


1310 N Gardner StreetLos Angeles, CA 90046


Year Built: 1957 8 1 Bdr 1 Bath



Price/SF: $409.36

CAP Rate: 3.00%

GIM: 18.76

Subject Property

1

21280 N Laurel AveWest Hollywood, CA 90046

19



RECENT SALES





Price/Unit: $283,333 4 2 Bdr 1.5 Bath

Price/SF: $371.00 1 3 Bdr 2 Bath

CAP Rate: 3.18%

GRM: 16.51





Price/SF: $443.42

CAP Rate: 3.39%

GRM: 16.51

1400 N Gardner StLos Angeles, CA 90046

7969 Norton AveWest Hollywood, CA 90046

1330 N Martel AveLos Angeles, CA 90046





Price/SF: $397.00 7 2 Bdr 1.5 Bath

CAP Rate: 3.72% 1 3 Bdr 1.5 Bath

GRM: 17.43



3

4

5

20



RECENT SALES





Price/SF: $490.60

CAP Rate: N/A

GRM: N/A





Price/SF: $346.99

CAP Rate: 3.32%

GRM: 17.97

1205 N Hayworth AveWest Hollywood, CA 90046

1016 N Curson AveWest Hollywood, CA 90046

7705 Romaine StWest Hollywood, CA 90046





Price/SF: $350.35

CAP Rate: 3.47%

GRM: 16.32




6

7

8

21



RECENT SALES





Price/SF: $343.41

CAP Rate: 3.76%

GRM: 16.25

2542 N Beachwood DrLos Angeles, CA 90068

2062 Argyle AveLos Angeles, CA 90068





Price/SF: $518.82

CAP Rate: 4.93%

GRM: 13.50



9

10

22



RECENT SALES


RENT COMPARABLES

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

Subject 7513Fountain

Ave

1439N

CursonAve

1343N

MartelAve

1435N

PoinsettiaPl

Average Rents - 1 Bedroom

24

RENT COMPARABLES1310 N Gardner StreetLOS ANGELES, CA


AVERAGE RENTS

0

300

600

900

1,200

1,500

1,800

2,100

2,400

2,700

3,000

Subject 1343N

MartelAve

1114N

GardnerSt

7470Hollywood

Blvd

Average Rents - 2 Bedrooms

25



AVERAGE RENTS

1)2)3)4)5)6)

1310 N Gardner Street7513 Fountain Ave1439 N Curson Ave1343 N Martel Ave1435 N Poinsettia Pl1114 N Gardner St7470 Hollywood Blvd

26



RENT COMPARABLES MAP

Subject Property

1

No. of Units 16Occupancy:Year Built: 1957

1310 N Gardner StreetLos Angeles, CA 90046

No. of Units 75Occupancy: N/AYear Built: 1973

No. of Units 20Occupancy: N/AYear Built: 1928

7513 Fountain Ave


1439 N Curson Ave


Unit Type Units Rent

1 Bdr 1 Bath $2,100 - $2,300

Total/ Avg. $2,200


1 Bdr 1 Bath $2,350

Total/Wtd. Avg. $2,350

27

2



Unit Type Units SF Rent Rent/SF

1 Bdr 1 Bath 8 N/A $1,444 N/A

2 Bdr 2 Bath 8 N/A $1,868 N/A

Total/Wtd. Avg. 16 14,657 $1,656 $1.81

RENT COMPARABLES

No. of Units 8Occupancy: N/AYear Built/Renovated: 1960

1343 N Martel Ave




1435 N Poinsettia Pl


1114 N Gardner St



1 Bdr 1 Bath $1,995



1 Bdr 1 Bath $2,245

2 Bdr 2 Bath $2,795



2 Bdr 1 Bath $2,895


5

4

28


3


RENT COMPARABLES


7470 Hollywood Blvd



2 Bdr 2 Bath $2,995


7

29


6


RENT COMPARABLES

Documents

1310 N Gardner Street - images2.loopnet.com · 1310 N Gardner Street. 1310 N Gardner Street LOS ANGELES, CA PRICING AND FINANCIAL ANALYSIS. Price $6,000,000 Down Payment 56% / $3,350,000