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Natick Manor Apartments4646 Natick Ave • Sherman Oaks, CA 91403
Cindy Hill, CCIMSenior Vice [email protected]
4061 Laurel Canyon Blvd.Studio City, CA 91604www.valleyapartmentsales.com
PROPERTY HIGHLIGHTS18 units + 2 non-conforming in Prime Sherman Oaks. Minutesaway from Ventura Blvd, restaurants, shopping and freeway
●
Excellent unit mix of over 80% two-bedroom 2 bath units. Someunits feature dens which could be used as third bedrooms.
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Units average over 1,500 square feet●
Numerous amenities include indoor pool, balconies, central HVACunits, secured parking, and lush landscaping
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Below market assumable loan at 3.35% interest only forapproximately three more years
●
Prepared By
INVESTMENT DETAILS
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
ANALYSIS
Analysis Date May 2018
PROPERTY
Property Natick Manor Apartments
Property Address 4646 Natick AveSherman Oaks, CA 91403
Year Built 1968
FINANCIAL INFORMATION
Down Payment $4,400,000
PURCHASE INFORMATION
Property Type MultiFamily
Purchase Price $7,900,000
Units 20
Total Rentable Sq. Ft. 26,910
LOANS
Type Debt Term Amortization Rate Payment LO Costs
Interest Only $3,500,000 30 years 0 years 3.35% $9,771
INCOME & EXPENSES
Gross Operating Income $445,920
Monthly GOI $37,160
Total Annual Expenses ($163,830)
Monthly Expenses ($13,652)
p. 2
EXECUTIVE SUMMARY
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Acquisition Costs
Purchase Price, Points and Closing Costs $7,900,000
Investment - Cash $4,400,000
First Loan $3,500,000
Investment Information
Purchase Price $7,900,000
Price per Unit $395,000
Price per Sq. Ft. $293.57
Income per Unit $22,980
Expenses per Unit ($8,191)
Income, Expenses & Cash Flow
Gross Scheduled Income $459,600
Total Vacancy and Credits ($13,680)
Operating Expenses ($163,830)
Net Operating Income $282,091
Debt Service ($117,250)
Cash Flow Before Taxes $164,841
Financial Indicators
Cash on Cash Return Before Taxes 3.75%
Debt Coverage Ratio 2.41
Capitalization Rate 3.57%
Gross Rent Multiplier 17.19
Gross Income / Square Feet $17.08
Gross Expenses / Square Feet ($6.09)
Operating Expense Ratio 36.74%
p. 3
PRO FORMA SUMMARY
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
INCOME
Description Actual Per Unit Market Per Unit
Gross Potential Rent $456,000 $22,800 $549,480 $27,474
Less: Vacancy ($13,680) ($684) ($16,484) ($824)
Misc. Income $3,600 $180 $3,600 $180
Effective Gross Income $445,920 $22,296 $536,596 $26,830
OPERATING EXPENSES
Description Actual Per Unit Market Per Unit
Property Management Fee $13,788 $689 $16,484 $824
Building Insurance $8,697 $435 $8,697 $435
City Fees $1,717 $86 $1,717 $86
Gardener $1,402 $70 $1,402 $70
Elevator $1,228 $61 $1,228 $61
Miscellaneous $1,500 $75 $1,500 $75
On-site Management Fees $5,400 $270 $5,400 $270
Pest Control $733 $37 $733 $37
Pool $1,350 $68 $1,350 $68
Repairs $7,500 $375 $7,500 $375
Telephone $1,091 $55 $1,091 $55
Taxes - Real Estate $94,249 $4,712 $94,249 $4,712
Trash Removal $3,964 $198 $3,964 $198
Utilities $21,211 $1,061 $21,211 $1,061
Total Expenses ($163,830) ($8,191) ($166,526) ($8,326)
NET OPERATING INCOME $282,091 $14,105 $370,070 $18,503
p. 4
PRO FORMA SUMMARY
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
UNIT MIX & MONTHLY SCHEDULED
Type Units Actual Total Market Total 1+1 4 $1,446 $5,782 $1,774 $7,0952+2 9 $1,876 $16,881 $2,400 $21,6002+2 + Den 6 $2,390 $14,337 $2,600 $15,600Single 1 $1,000 $1,000 $1,495 $1,495TOTALS 20 $38,000 $45,790
ANNUALIZED INCOME Description Actual Market
Gross Potential Rent $456,000 $549,480Less: Vacancy ($13,680) ($16,484)Misc. Income $3,600 $3,600Effective Gross Income $445,920 $536,596Less: Expenses ($163,830) ($166,526)Net Operating Income $282,091 $370,070Debt Service ($117,250) ($117,250)Net Cash Flow after Debt Service $164,841 $252,820Principal Reduction $0 $0Total Return $164,841 $252,820
ANNUALIZED EXPENSES Description Actual Market
Property Management Fee $13,788 $16,484Building Insurance $8,697 $8,697City Fees $1,717 $1,717Gardener $1,402 $1,402Elevator $1,228 $1,228Miscellaneous $1,500 $1,500On-site Management Fees $5,400 $5,400Pest Control $733 $733Pool $1,350 $1,350Repairs $7,500 $7,500Telephone $1,091 $1,091Taxes - Real Estate $94,249 $94,249Trash Removal $3,964 $3,964Utilities $21,211 $21,211Total Expenses $163,830 $166,526Expenses Per RSF $6.09 $6.19Expenses Per Unit $8,191 $8,326
INVESTMENT SUMMARY
Price: $7,900,000
Year Built: 1968
Units: 20
Price/Unit: $395,000
RSF: 26,910
Price/RSF: $293.57
Lot Size: 14,245 sf
Floors: 3
APN: 2265-002-179
Cap Rate: 3.57%
Market Cap Rate: 4.68%
GRM: 17.19
Market GRM: 14.28
FINANCING SUMMARY
Loan Amount: $3,500,000
Down Payment: $4,400,000
Loan Type: Interest Only
Interest Rate: 3.35%
Term: 30 years
Monthly Payment: $9,771
DCR: 2.41
p. 5
PROPERTY DESCRIPTION
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
18 Units in Prime Sherman Oaks | Excellent unit mix with upside KW Commercial is proud to represent this 18 unit plus two additional non-conforming units apartment building inSherman Oaks. The non conforming units are in the process of being legalized with the city.
The building was constructed in 1968. Its unit mix consists of (3) one-bedroom, one-bathroom units, (9) two-bedroom,two-bathroom units, and (6) two-bedroom, two-bathroom and a den units. With a lot size of 14,245 square feet, theproperty has a total of 26,910 rentable square feet. There are (2) non confirming units that bring in an additional $1000each per month.
There is an existing loan in the approximate amount of $3500,000 that was originated in 2015. The loan is at 3.35%interest that is fixed until October 16, 2020. If buyer does not assume the loan buyer is responsible for prepaymentpenalty of approximately 2% of the loan amount. The property is situated in a prime Sherman Oaks area, which has acomfortable blend of urban and suburban amenities. Along with sunny, clean sidewalks, the city offers many hip cafesand shops — especially on Ventura Boulevard, which features the Sherman Oaks Galleria and many upscalerestaurants. Residents also have easy access to the 405 and 101 freeways.
The building’s amenities include an indoor pool, balconies, central HVAC units, secured parking, and lush landscaping.It is separately metered for gas and electricity.
p. 6
UNIT RENT ROLL
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Unit Description Current Rent Pro Forma Rent Comments
201 2+2 + Den $2,195 $2,600
202 2+2 $2,164 $2,400
203 2+2 $1,444 $2,400
204 2+2 $2,050 $2,400
205 2+2 + Den $2,490 $2,600
206 1+1 $1,586 $1,800
301 2+2 + Den $2,390 $2,600
302 2+2 $2,016 $2,400
303 2+2 $1,044 $2,400
304 2+2 $2,008 $2,400
305 2+2 + Den $2,462 $2,600
306 1+1 $1,590 $1,800
401 2+2 + Den $2,210 $2,600
402 2+2 $2,000 $2,400
403 2+2 $2,005 $2,400
404 2+2 $2,150 $2,400
405 2+2 + Den $2,590 $2,600
406 1+1 $1,606 $1,800
407 Single $1,000 $1,495 Currently non-conforming; permits applied for
408 1+1 $1,000 $1,695 Currently non-conforming; permits applied for
p. 7
UNIT MIX REPORT
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly
4 1+1 0 $1,446 $5,782 $1,774 $7,0959 2+2 0 $1,876 $16,881 $2,400 $21,6006 2+2 + Den 0 $2,390 $14,337 $2,600 $15,6001 Single 0 $1,000 $1,000 $1,495 $1,49520 0 $38,000 $45,790
UNIT MIX UNIT MIX SQUARE FEET
● 1+1
● 2+2
● 2+2 + Den
● Single
● 1+1
● 2+2
● 2+2 + Den
● Single
UNIT MIX INCOME UNIT MIX MARKET INCOME
● 1+1
● 2+2
● 2+2 + Den
● Single
● 1+1
● 2+2
● 2+2 + Den
● Single
p. 8
PROPERTY PHOTOS
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Pride of ownership apartment buildingTrophy property close to dining, shopping, and entertainment
Large balaconies Spacious living room
Living and dining area Separate dining area
Kitchen and breakfast area updated bathroom
p. 9
PROPERTY PHOTOS
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Pride of ownership apartment buildingTrophy property close to dining, shopping, and entertainment
Indoor pool with exercise equipment Large bedroom
property courtyard / patio Close to shopping, dining and entertainment
Close aerial view Convenient to the 101 & 405 Freeways
MAPS AND AERIALS
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
18 Units in Prime Sherman OaksClose to 101 and 405 freeways
p. 11
City of Sherman Oaks
www.ValleyApartmentSales.com
Sherman Oaks has a comfortable blend of urban and suburban ameni es.
With sunny, clean sidewalks, the city offers many hip cafes and shops—
especially on Ventura Boulevard. Residents enjoy close proximity to the
Sherman Oaks Galleria, Sherman Oaks Fashion Square, and many upscale
restaurants. The Sherman Oaks community also enjoys the Sherman Oaks
War Memorial, which features jogging paths, tennis courts, and several
classes and ac vi es.
The city has easy access to the 405 and 101 freeways.
SALE COMPARABLES
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
Subjec 1 2 4 5 6 7 8 9 10
1%
2%
3%
4%
5%
6%
7%
8%
Avg.
3.367
Cap Rate
Subjec 1 2 4 5 6 7 8 9 10
3.0
6.0
9.0
12.0
15.0
18.0
21.0
24.0
Avg.
16.767
Gross Rent Multiplier
Subje 1 2 3 4 5 6 7 8 9 10
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Avg.
$294,132
Price per Unit
Subje 1 2 3 4 5 6 7 8 9 10
$45
$90
$135
$180
$225
$270
$315
$360
Avg.
$289.68
Price per Sq. Ft.
p. 13
SALE COMPARABLES
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
S Natick Manor Apartments4646 Natick AveSherman Oaks, CA 91403
Sale Price $7,900,000Units 20Price/Unit $395,000Price/SqFt $293.57Cap Rate 3.57%Year Built 1968GRM 17.19
# Units Unit Type4 1+1
9 2+2
6 2+2 + Den
1 Single
1 4540 Hazeltine Ave4540 Hazeltine AveSherman Oaks, CA 91423
Sale Price $7,750,000Units 23Price/Unit $336,957Price/SqFt $353.48Cap Rate 4.0%Year Built 1951Sale Date 12/11/2017GRM 15.6
# Units Unit Type6 One Bedroom One Bath
7 Two Bedroom Two Bath
10 Three Bedroom Two Bath
2 4535 Murietta Ave4535 Murietta AveSherman Oaks, CA 91423
Sale Price $3,900,000Units 13Price/Unit $300,000Price/SqFt $324.95Cap Rate 3.87%Year Built 1965Sale Date 10/20/2017GRM 16.1
# Units Unit Type5 One Bedroom One Bath
4 Two Bedroom One Bath
4 Two Bedroom Two Bath
p. 14
SALE COMPARABLES
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
3 Coldwater Court4526 Coldwater CanyonStudio City, CA 91604
Sale Price $5,350,000Units 15Price/Unit $356,667Price/SqFt $310.92Cap Rate N/AYear Built 1965Sale Date 4/14/2017GRM N/A
# Units Unit Type8 One Bedroom One Bath
6 Two Bedroom Two Bath
1 Three Bedroom Two Bath
4 Villa Colfax4377 Colfax AveStudio City, CA 91604
Sale Price $10,200,000Units 34Price/Unit $300,000Price/SqFt $237.13Cap Rate 3.04%Year Built 1970In EscrowGRM 18.3
# Units Unit Type10 One Bedroom One Bath
24 Two Bedroom Two Bath
5 12100 Valley Spring Ln12100 Valley Spring LnStudio City, CA 91604
Sale Price $5,600,000Units 20Price/Unit $280,000Price/SqFt $322.06Cap Rate 3.26%Year Built 1965Sale Date 11/16/2017GRM 17.0
# Units Unit Type10 One Bedroom One Bath
1 Two Bedroom One Bath
7 Two Bedroom Two Bath
2 Three Bedroom Two Bath
p. 15
SALE COMPARABLES
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
6 Toluca Plaza10311 Riverside DrToluca Lake, CA 91602
Sale Price $11,900,000Units 39Price/Unit $305,128Price/SqFt $281.26Cap Rate 3.45%Year Built 1971Sale Date 6/28/2017GRM 15.8
# Units Unit Type27 One Bedroom One Bath
12 Two Bedroom Two Bath
7 Chandler Court12245 Chandler BlvdValley Village, CA 91607
Sale Price $10,025,000Units 34Price/Unit $294,853Price/SqFt $305.82Cap Rate 3.72%Year Built 1971Sale Date 9/6/2017GRM 15.7
# Units Unit Type22 One Bedroom One Bath
12 Two Bedroom Two Bath
8 The Imperial11915 Kling StValley Village, CA 91607
Sale Price $6,800,000Units 26Price/Unit $261,538Price/SqFt $253.17Cap Rate 2.97%Year Built 1969In EscrowGRM 17.5
# Units Unit Type5 One Bedroom One Bath
21 Two Bedroom Two Bath
p. 16
SALE COMPARABLES
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
9 11935 Kling St11935 Kling StValley Village, CA 91607
Sale Price $6,800,000Units 26Price/Unit $261,538Price/SqFt $256.19Cap Rate 2.96%Year Built 1967In EscrowGRM 17.6
# Units Unit Type5 One Bedroom One Bath
20 Two Bedroom Two Bath
1 Three Bedroom Two Bath
A 11930 Kling St11930 Kling StValley Village, CA 91607
Sale Price $6,850,000Units 28Price/Unit $244,643Price/SqFt $251.84Cap Rate 3.03%Year Built 1966In EscrowGRM 17.3
# Units Unit Type11 One Bedroom One Bath
16 Two Bedroom Two Bath
1 Three Bedroom Two Bath
NOTESLegal address is 11940 Kling St
p. 17
SALE COMPARABLES
4646 Natick AveSherman Oaks, CA 91403
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made tothe accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing orwithdrawal without notice. No liability of any kind is to be imposed on the broker herein.
S 4646 Natick AveSherman Oaks, CA, 91403$7,900,000
1 4540 Hazeltine AveSherman Oaks, CA, 91423$7,750,000
2 4535 Murietta AveSherman Oaks, CA, 91423$3,900,000
3 4526 Coldwater CanyonStudio City, CA, 91604$5,350,000
4 4377 Colfax AveStudio City, CA, 91604$10,200,000
5 12100 Valley Spring LnStudio City, CA, 91604$5,600,000
6 10311 Riverside DrToluca Lake, CA, 91602$11,900,000
7 12245 Chandler BlvdValley Village, CA, 91607$10,025,000
8 11915 Kling StValley Village, CA, 91607$6,800,000
9 11935 Kling StValley Village, CA, 91607$6,800,000
A 11930 Kling StValley Village, CA, 91607$6,850,000
p. 18