10116 S MAIN ST LOS ANGELES, CA 90003 · 2019-02-11 · LOS ANGELES, CA 90003 ... AC, and electrical. Seller would be open to lease back of 800 square feet at market rents, terms

10116 S MAIN STLOS ANGELES, CA 90003RETAIL CANNABIS SALES & MICROBUSINESS ELIGIBLEMARIJUANA COMPLIANT DESIGNATION

OFFERING MEMORANDUM | $1,395,000

3

© 2019 Hudson Commercial Partners, Inc. The information contained in this document has been obtained from sources believed reliable. While Hudson Commercial Partners, Inc. does not doubt its accuracy, Hudson Commercial Partners, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors, which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Hudson Commercial Partners, Inc. and the Hudson Commercial Partners, Inc. logo are service marks of Hudson Commercial Partners, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

TABLE OF CONTENTS

SECTION ONE 06EXECUTIVE PROFILE

This Memorandum (“Offering Memorandum”) has been prepared by Hudson Partners based on information that was furnished to us by sources we deem to be reliable. No warranty or representation is made to the accuracy thereof; subject to correction of errors, omissions, change of price, prior sale, or withdrawal from market without notice.

This Memorandum is being delivered to a limited number of parties who may be interested in and capable of purchasing the Property. By its acceptance hereof, each recipient agrees that it will not copy, reproduce or distribute to others this Memorandum in whole or in part, at any time, without the prior written consent of Hudson Partners, and it will keep permanently confidential all information contained herein not already public and will use this Confidential Memorandum only for the purpose of evaluating the possible acquisition of the Property.

This Memorandum does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information, which prospective buyers may need, or desire. All financial projections are based on assumptions relating to the general economy, competition and other factors beyond the control of the Owner and, therefore, are subject to material variation. This Memorandum does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of this Memorandum.

This Memorandum is being delivered by Hudson Partners to prospective purchasers with the understanding that all prospective purchasers will conduct their own independent investigation of those matters, which they deem appropriate in order to evaluate this offering. Additional information and an opportunity to inspect the site will be made available to interested and qualified prospective purchasers. Hudson Partners reserves the right to request the return of any or all of the information enclosed.

SECTION 1 | EXECU

TIVE OVERVIEW

HUDSON COMMERCIAL PARTNERS, INC. - 76 - HUDSON COMMERCIAL PARTNERS, INC.

site description Physical description

PROPERTY INFORMATION

DESCRIPTION SPECIFICATION

TOTAL SF 4,400 SF

PARCEL AREA 5,499 SF

APN 6063-008-014

UNIT 1UNIT 2UNIT 3

2,800 SF - Retail Sales800 SF - Cultivation or Microbusiness800 SF - Delivery Service or Microbusiness

FLOOR-TO-AREA RATIO 0.78

ZONING C2-1VL

PARKING 1 Surface Space

PARKING RATIO 0.23/1,000 SF

METERS Separately MeteredHeater/AC/Electrical

YEAR BUILT 1957 | Renovated

ROOF Wood-Truss

TENANCY Single or Multi-Tenant

DESCRIPTION SPECIFICATION

CONSTRUCTION TYPE Concrete Block

POWER 3Phase Power, 400 Amp

GROUND-LEVEL DOOR Rear 12’ x 10’

ACCESS 18 Foot Rear Alley

CEILING HEIGHT 12 Feet

RESTROOM 3: Restrooms

CROSS STREET 102nd Street

HIGHWAY ACCESS 110 and 105 Freeways

LOT DIMENSIONS 44’ x 125’

TRAFFIC COUNT ±11,853 Vehicles Per Day

STREET FRONTAGE 44 Feet on Main Street

PROPERTY DESCRIPTION

This property is situated in the a highly desirable location for the Cannabis

Industry, with a variety of marijuana related allowed uses. The Geographic

Information Systems (GIS) analysis determined there are no “City Identified”

sensitive receptors within 700 feet of the subject property. The building

qualifies as an Eligible Retailer (Type 10) for cannabis sales. This storefront

is portion is 2,800 square feet which allows the sales of cannabis good at the

premises or by delivery service. The building also allows for manufacturing

of cannabis products using nonvolatile solvents or no solvents (Level 1,

Type 6). The Microbusiness allows a licensee to engage in cultivation,

distribution, retail sale, delivery, or any combination of the four activities.

The building has been completed remodeled, framed, painted, and

customized for a high volume operation. It has the upgraded electrical

infrastructure, interior build-out and a turn key layout for a Buyer to

commence their cannabis efforts at the close of escrow. There is 3 phase

power and 400 amps to supply the entire premises. The 3 suites are

separately metered for heater, AC, and electrical. Seller would be open to

lease back of 800 square feet at market rents, terms and conditions of the

leaseback to be negotiable. As an investment, the market rents for cannabis

related tenants are +/- $3.00 PSF and will deliver over a 7.5 Cap Rate to

an Investor looking to stabilize this asset with cannabis related tenants.

PROPERTY HIGHLIGHTS• • • • • • •

On the other hand, an Owner-user operator could seek relief from these

opportunistic landlords and reduce their own occupancy costs by purchasing

the building for themselves. Either Buyer profile will benefit from this new

designation and allowed cannabis uses, commanding a premium.


SUMMARY TERMS

PRICE $1,395,000

DOWN PAYMENT (20%) $279,000

BUILDING SIZE 4,400 SF

PRICE PER FOOT ON BUILDING $317.05

LOT SIZE 5,499 SF

PRICE PER FOOT ON LAND $253.68

YEAR BUILT 1957

ZONING C2-1VL

DESCRIPTION ESTIMATED PSF

OPERATING EXPENSES

TAXES (1.125%) $17,437 $3.96

INSURANCE $1,980 $0.45

UTILITIES $4,400 $1.00

REPAIRS & MAINTENANCE $3,300 $0.75

CAPITAL RESERVES/MISC $1,100 $0.25

TOTAL OPERATING EXPENSES $28,217 $6.41

DEBT SERVICE $76,350 $17.35

TOTAL OCCUPANCY COSTS $104,567 $23.77

MONTHLY OCCUPANCY COSTS(before tax advantages of ownership) $6,362/ Mo. $1.98 PSF

SUMMARY TERMS

LOAN AMOUNT $1,116,000

LOAN TYPE Conventional Loan

RATE 4.75%

AMORTIZATION 25 Years

DUE 20 Years

MONTHLY PAYMENT $6,362.51/Mo.

CONVENTIONAL LOAN - ASSUMPTIONS ESTIMATED ANNUALIZED | USER OCCUPANCY COSTS

LOAN ASSUMPTIONS - CONVENTIONAL FINANCING

USER OCCUPANCY COSTS RENT ROLL - PRO-FORMA

RETAIL SQUARE FEET RENT PSF LEASE TYPE EXPERATION OPTIONS TO RENEW

Front 2,800 SF $7,500 $2.67 IndustrialGross Vacant TBD

Middle 800 SF $2,500 $3.13 IndustrialGross Vacant TBD

Rear 800 SF $2,500 $3.13 IndustrialGross 3-5 Years Negotiable

TOTAL 4,400 SF $17,500 / Mo. $2.97 Average


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RESULTS

The site located at 10116 South Main Street was evaluated in reference to the City of Los Angeles Proposed City Cannabis Zoning Maps in the Cannabis Social Equity Analysis Report,20 Microbusiness (with on-site retail) eligible zones and Microbusiness (no on-site retail eligible locations) as well as for a courtesy Retail (store front) eligible locations. The GIS analysis determined that there are no City-identified sensitive receptors located within 700 feet of the proposed project site. The nearest sensitive receptor to the project site is a school located approximately 0.23 mile (1,236 feet) from the project site. The nearest licensed cannabis retailer, Dr. Kush World Collective, was determined to be approximately 2.43 miles to the northeast of the project site at 6800 McKinley Ave., Los Angeles, CA 90001. However, the analysis showed that the proposed project location would not be eligible for operation of a Type-12 Microbusiness based on the Draft Commercial Cannabis Location Restriction Ordinance maps included in City of Los Angeles Cannabis Social Equity Analysis Report.21 The proposed project would be eligible for a Type-10 Retailer (storefront) Commercial Cannabis Activity license.

20 City of Los Angeles. October 2017. Cannabis Social Equity Analysis Report. Prepared by: Amec Foster Wheeler Environment & Infrastructure, Inc. 21 City of Los Angeles. October 2017. Cannabis Social Equity Analysis Report. Prepared by: Amec Foster Wheeler Environment & Infrastructure, Inc.


22 - HUDSON COMMERCIAL PARTNERS, INC.

JAY MARTINEZManaging Principal

11846 Ventura Blvd.Suite 140Studio City, CA 91604

Cal BRE: 01367663

CONTACT

C: 310.658.3357P: 818.212.3057F: 818.688.8140

E: [email protected]

Documents

10116 S MAIN ST LOS ANGELES, CA 90003 · 2019-02-11 · LOS ANGELES, CA 90003 ... AC, and electrical. Seller would be open to lease back of 800 square feet at market rents, terms