2159 La Canada Crest Drive, La Cañada Flintridge, CA 91011 · The La Canada Flintridge housing market (specifically 91011) boasts an average home value of $1,708,200, creating a

2159 La Canada Crest Drive, La Cañada Flintridge, CA 910115-Unit Multifamily Investment Opportunity in La Canada Flintridge

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2 | 2159 LA CANADA CREST

Exclusively Listed By:

RICH JOHNSMultifamily Investment [email protected]

CALBRE LIC#01432215

2159 LA CANADA CREST DRIVE, LA CAÑADA FLINTRIDGE, CA 91011

NICK ASTRUPGAARDMultifamily [email protected]

CALBRE LIC #01893466

2159 LA CANADA CREST | 3

CONTENTS

04111623

PROPERTY DESCRIPTION

MARKET COMPARABLES

FINANCIAL SUMMARY

MARKET OVERVIEW


P r o p e r t yD e s c r i p t i o n


KW Commercial is pleased to present 2159 La Canada Crest Drive, an attractive 5-Unit apartment community in the highly desirable La Canada Flintridge submarket (91011).

2519 La Canada Crest Drive is a unique opportunity to purchase a multifamily investment opportunity in a market with tremendous barriers to entry and incredible income demographics, which include an annual household income of $188,875 (ages 24-44) and $211,458 (ages 45-64).

The offering is highlighted by an excellent unit mix of very large and spacious units featuring Two (2) 2 bedroom | 1.5 bathroom units and Three (3) 2 bedroom | 1 bathroom apartment units. The average unit size is approx. 936 square feet each and each unit features a private patio and/or balcony. The building improvements total 4,682 SF on an 8,797 SF corner parcel.

The property is well maintained and has been updated with copper plumbing throughout. Each resident is provided ample onsite parking and storage space(s). Expenses are low as each unit is separately metered for gas and electricity. There is a common area laundry room for resident use.

2510 La Canada Crest Drive is ideally located in La Canada Flintridge and features great walkability and convenient access to a myriad of entertainment venues, cultural destinations, and dining options nearby.

The La Canada Flintridge housing market (specifically 91011) boasts an average home value of $1,708,200, creating a significant affordability gap to home ownership in the La Canada Flintridge submarket. A typical monthly mortgage payment is between 4-5 times more than the average renovated rents at 2510 La Canada Crest Drive.

Given the property’s location and strong income metrics, 2159 La Canada Crest Drive is an ideal investment for apartment operators seeking immediate returns along with long term wealth preservation and appreciation.

OFFERINGTHE


THE OPPORTUNITY: 2519 La Canada Crest Drive is an attractive 5-Unit apartment community located in the highly desirable La Canada Flintridge submarket.

STRONG INCOME METRICS: 2519 La Canada Crest Drive is currently producing strong rents and has the possibility for income growth through further unit attrition and annual rent increases.

WELL LOCATED: 2159 La Canada Crest is located in the prestigious community of La Canada Flintridge, one of the most desirable communities in the Los Angeles Metro Area.

EXCEPTIONAL FINANCING / LOAN OPTIONS: Historically low interest rates and attractive financing options available.

LACK OF HOUSING AFFORDABILITY: There is a significant affordability gap to home ownership in the La Canada Flintridge market. As the median home price in the area is $1,708,200 a typical monthly mortgage payment is between 4-5 times more than the average renovated rents at 2159 La Canada Crest Drive.

INVESTMENT

HIGHLIGHTS


2519 La Canada Crest Dr.





F i n a n c i a lS u m m a r y


FINANCIAL SUMMARY

BUILDING DATAUnits 5

Year Built 1962

Lot Sq Ft 4,682

Bldg Gross Sq Ft 8,797

Parking Spaces 5

ESTIMATED ANNUALIZED EXPENSESNew Property Taxes $35,609

Utilities (DWP & Gas) $2,750

Property Insurance $4,838

Landscaping $1,440

Repairs & Maintenance $2,750

Rental Registration $270

Pest Control $960

Total Estimated Expenses -$48,617

SOURCE OF INCOME CURRENT RENT MARKET RENT Post Renovation

# of Units Unit Type Avg. Rent Total Avg. Rent Income

2 2 Bed / 1.5 Bath $2,445 $4,890 $3,150 $6,300

3 2 Bed / 2 Bath $2,228 $6,685 $2,995 $8,985

Total Monthly Income 11,575 $15,285

Total Annual Income 138,900.00 $183,420

EST. ANNUALIZED OPERATING DATA CURRENT MARKETScheduled Gross Income $138,900 $183,420

Less Vacancy 2.0% ($2,778) 2.0% ($3,668)

Gross Operating Income $136,122 $179,752

Less Expenses 35.7% ($48,617) 27% ($48,617)

Net Operating Income $87,505 $131,135

NOTATIONS:1) Repairs & Maintenance: Repairs and Maintenance is underwritten as a pro forma expense of $550 per unit per year.

2) Contract Service: Expenses are projected for Pest Control ($80/mo), Landscaping ($120/mo) based on market rates.

3) Utilities: Estimated at $550 / unit / year based on market rates. Separately metered for Gas & Electrical utilities.

4) Real Estate Taxes: Taxes have been underwritten based upon a tax rate of 1.23%.

5) Property Insurance: The Current and Pro Forma Insurance expense is based upon $0.55/SF/Year.

6) Capital Reserves: Capital Reserves have been underwritten at 2% of Annual Gross Income.

FINANCIAL INDICATORS

Offering Price $2,895,000

Current CAP 3.0%

Market CAP 4.5%

Current GRM 20.84

Market GRM 15.78

Cost Per Unit $579,000

Price per SF $329.09

Expense Per Unit $9,723

Expenses Per Sq Ft $5.53


RENT ROLL

UNIT STATUS UNIT TYPE Est. SF Current Rent / SF

Current Rent Market Rent / SF

Market Rent Post Renovation

1 Occupied 2 Bed / 1.5 Bath 936 $2.56 $2,395 $3.37 $3,150

2 Occupied 2 Bed / 1.5 Bath 936 $2.67 $2,495 $3.37 $3,150

3 Occupied 2 Bed / 1 Bath 936 $2.57 $1,995 $3.20 $2,995



$2.61 $11,575 $3.27 $15,285


Assessor’s Parcel Number Buildings Year Built Land Use

Zoning Stories

SITE DESCRIPTIONUnits

Gross Square Footage Lot Size Square Footage

Parking

UTILITIESWaterSewer

ElectricGas:

Property Details

2159 La Canada Crest Drive • La Cañada Flintridge, CA • 91011

CONSTRUCTION

5810-015-007 3 1962ApartmentsLFR3Two

54,682 8,7975

Master MeteredMaster MeteredSeparately MeteredSeparately Metered

Foundation Framing Exterior

RoofTopography

Foundation RetrofittedWood FrameStucco PitchedFlat



M a r k e tO v e r v i e w


BURBANK

2159LA CANADA CREST DRIVE

LA CAÑADA FLINTRIDGE

PASADENA SAN GABRIEL MOUNTAINS

GLENDALE DOWNTOWN LOS ANGELES

CRESCENTAVALLEY


LA CAÑADA

FLINTRIDGELa Cañada Flintridge is a city in Los Angeles County, located in the Crescenta Valley and western end of the San Gabriel Valley. It is the home of NASA's Jet Propulsion Laboratory (JPL).

La Cañada Flintridge prides itself on being a small, close-knit, and family-oriented community with many volunteer-based organizations and highly ranked/award winning schools. The city also contains many community amenities, including parks, sports fields and courts, a skate park, hiking/equestrian trails, a public library, the historic Lanterman House, and Descanso Gardens.

DESCANSO GARDENSDescanso Gardens is an urban retreat of year-round natural beauty, internationally renowned botanical collections and spectacular seasonal horticultural displays. Visit for a stroll, a concert or a class — there are so many ways to explore.

Descanso Gardens is more than a place to explore; it’s a place to find inspiration for your home garden, learn a new skill or enjoy a concert on the lawn. Take a class, attend a festival or bring your favorite foodie to a wine tasting dinner. Whatever your mood, the Gardens offer a range of activities, classes, festivals and events.


RETAIL AMENITIESLess than 7 miles from AMAZING SHOPPING

The Americana at Brand is a large mixed-use shopping, dining, entertainment and residential complex in Glendale, California. The Americana at Brand offers world-class retail, restaurants, entertainment and residences together in one beautiful destination. It is the home of eighty-two retail shops including Barneys New York, Nordstrom, XXI Forever, and Anthropologie. A few of its restaurants are Din Tai Fung, Bourbon Steak by Michael Mina, and Katsuya. The complex also includes 100 condominiums and 242 luxury apartments.

Glendale Galleria is a large shopping center in Downtown Glendale. The mall contains a wide variety of stores, including the first ever Apple and Disney stores. It is the home to traditional favorites, including Macy’s, Williams Sonoma, and LOFT, and is continuously adding the most coveted new retail concepts.

AMERICANA AT BRAND

GLENDALE GALLERIA


PASADENAPasadena is situated at the base of the San Gabriel Mountains. The city is best known for hosting the annual Rose Bowl football game and Tournament of Roses Parade. In addition, Pasadena is also home to many scientific and cultural institutions, including Caltech, Pasadena City College, Fuller Theological Seminary, ArtCenter College of Design, the Pasadena Playhouse, the Ambassador Auditorium, the Norton Simon Museum, and the USC Pacific Asia Museum.

ONE COLORADO

Old Town Pasadena is one of the West Coast's most vibrant shopping, dining, and entertainment destination districts. It features a true downtown experience combined with all of the modern conveniences. Old Pasadena finds itself at the heart of a city that has amazing mountain views, sun-drenched rose gardens, world-class cultural institutions, and beautifully authentic early 20th-Century architecture.

OLD PASADENA


BURBANKThe city of Burbank, located just north of Hollywood, is considered to be home base for the entertainment industry. It is the headquarters for a handful of the large film studios, including Warner Bros., Disney Studios, and ABC.

Beyond the industry-driven Media District, the city has two more distinct areas. The Downtown Burbank district is home to eateries such as Moore’s Delicatessen (complete with doodles on the walls from local animators), Guisados, or Fosters Freeze, a ’50s-era drive-in famous for their soft-serve ice cream cones. Burbank also has one of the top-grossing movie theaters in the U.S – the AMC Burbank 16.

Every October, the city is home to the massive Burbank Beer Festival & Fall Street Fair in Downtown Burbank. In addition to tastings of your favorite brews, there is live music and a Fall Street Fair featuring art vendors, handcrafted products and more.

For more dining and shopping, take a stroll through the diverse Magnolia Park neighborhood, with delicious Cuban pastries and sandwiches at the amazing Porto’s Bakery, or the eco-friendly, all-California beer bar Tony’s Darts Away. Magnolia Park also has a “vintage-inspired” shopping scene, where you can find ’50s-style fashions at Pinup Girl Boutique and Unique Vintage, or Hollywood souvenirs from It’s A Wrap!



M a r k e tC o m p a r a b l e s


2159 La Canada Crest DriveCOMPARABLES

SALE

1)

2)

3)

4)

2350 Florencita Ave

2677 Honolulu Ave

3353 Montrose Ave

2207 Verdugo Rd


COMPARABLESSALE

PROPERTY YEAR BUILT UNITS BLDG SF PRICE CAP GRM $/UNIT CLOSED

2159 La Canada Crest DriveLa Cañada Flintridge, CA 91011 1962 5 4,682

1 2350 Florencita AveMontrose, CA 91020 1949 5 2,649 $1,510,000 4.19% 16.00 $302,000 1/31/2020

2 2677 Honolulu AveMontrose, CA 91020 1954 6 4,030 $1,510,000 7.74% - $251,667 7/16/2019

3 3353 Montrose AveGlendale, CA 91214 1992 5 7,594 $2,520,000 3.92% 17.60 $504,000 3/6/2020

4 2207 Verdugo RdGlendale, CA 91208 1962 6 5,968 $1,725,000 4.00% - $287,500 8/6/2019


21592159La Canada CrestLa Canada Crest


All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of sig-nificance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transactionAll data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or perfor-mance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Studio City in compliance with all applicable fair housing and equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

CONFIDENTIALITY AGREEMENT


Exclusively ListedBy:

RICH JOHNSMultifamily Investment [email protected]

CALBRE LIC#01432215

NICK ASTRUPGAARDMultifamily [email protected]

CALBRE LIC #01893466

Documents

2159 La Canada Crest Drive, La Cañada Flintridge, CA 91011 · The La Canada Flintridge housing market (specifically 91011) boasts an average home value of $1,708,200, creating a