OFFERING MEMORANDUM 9 noRth detRoIt stReet€¦ · This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish

1235-39 NORTH DETROIT STREETWEST HOLLYWOOD, CA 90046

L O S A N G E L E S C O U N T Y M U L T I F A M I L Y

Real estate Investment sales t FInancIng t ReseaRch t advIsoRy seRvIces

OFFERING MEMORANDUM

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.

NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorse 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 cor-poration of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant

lessee information about this listing to prospective customers.

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 YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality and disClaimer

Offices Throughout the U.S. and Canadawww.MarcusMillichap.com



Rick E. RaymundoSenior Managing Director Investments

Senior Director, National Multi Housing Group

515 South Flower Street Suite 500Los Angeles, CA 90071(213) 943-1855 Direct

(213) 943-1961 Fax(818) 219-6146 Mobile

[email protected]

Anthony Rodriguez, MBAAssociate Member

National Multi Housing Group


(213) 943-1961 Fax(949) 343-0202 Mobile

[email protected]

EXCLUSIVELY LISTED BY:

table oF contents

Section 1 INVESTMENT OVERVIEW

Section 2 PRICING AND FINANCIAL ANALYSIS

Section 3 PROPERTY DESCRIPTION

Section 4 RECENT SALES

Section 5 RENT COMPARABLES

Section 6 DEMOGRAPHIC ANALYSIS

Investment oveRvIew

1235-39 North Detroit Street, West Hollywood, CA 90046

This Information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are appoximate. Buyer must verify the information and bears all risk for any inaccuracies. © 2017 Marcus & Millichap Activity ID: Z0140359 2

The Offering

Marcus & Millichap is pleased to announce the sale of 1235-1239 North Detroit Street, a multifamily property situated in the prestigious and vibrant city of West Hollywood, adjacent to both Beverly Hills and Hollywood. Located near the intersection of Santa Monica Boulevard and La Brea Avenue, the property contains three separate buildings on a 12,999 square foot parcel. The asset includes 18 apartment units, plus an additional four non-conforming units, as well as on-site laundry facilities to provide an extra stream of income for the new owner.

The property is in close proximity to both the Sunset Strip and Hollywood and Highland, offering tenants numerous options in terms of popular restaurants, bars, clubs, and shopping. Tenants can enjoy a short, two-block walk to the West Hollywood Gateway shopping center on Santa Monica Boulevard, which is anchored by both Target and Best Buy, the first big box retailers ever within the City of West Hollywood. Directly across the street from the property is a Ralphs Supermarket. In addition to boasting a Walk Score of 91, which is very high for the Los Angeles area, the building affords tenants convenient vehicular access to the The Grove and The Beverly Center.

Current rents sit approximately 24 percent below market level, without even accounting for additional potential income earned by the non-conforming units. All three buildings were recently painted, helping to decrease deferred maintenance expenses for the new owner. A quiet terrace is tucked into the rear corner of the property, providing a relaxing space for tenants to relax and/or socialize.

invesTmenT highlighTs

Dubbed a “Walker’s Paradise” With a Walk Score of 91 -- Blocks from Trader Joe’s, Sprouts, Across Street from Ralphs Supermarket

Large 12,999 Square Foot Lot Zoned WDR3C -- Currently Contains Three Separate Buildings and 18 Open Parking Spaces

Significant Rent Upside -- Current Rents Approximately 24 Percent Below Market Level in West Hollywood

Short Drive to The Grove, The Beverly Center, Sunset Strip, and Beverly Hills

Less Than One Mile From the Epicenter of Hollywood, Hollywood Boulevard & Highland Avenue

Additional Income Stream Provided by On-Site Laundry Facilities

New Exterior Paint

This Information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are appoximate. Buyer must verify the information and bears all risk for any inaccuracies. © 2017 Marcus & Millichap Activity ID: Z0140359 3

Prime West Hollywood Location - Near Corner of Santa Monica Boulevard and La Brea Avenue

No Seismic Retrofit Requirements (Buyer to Verify)

Two Blocks from West Hollywood Gateway -- First Big Box Retailers Ever in City of West Hollywood (Target, Best Buy)

Offering summaryTHE OFFERING

Property Address1235-39 North Detroit Street

West Hollywood, CA 90046

Price $4,800,000

Down Payment 100% / $4,800,000

Price/ Legal Unit $266,667

Price/SF $583.66

Number of Units 18 + 4*

Rentable Square Feet 8,224

Year Built 1940

Lot Size 12,999

VITAL DATACAP Rate – Current 4.02%

CAP Rate – Current (Legal Units Only) 3.41%

GIM – Current 14.68

GIM – Current (Legal Units Only) 17.34

Net Operating Income – Current $192,720

Total Return – Current 4.0% / $192,720

CAP Rate – Pro Forma 5.09%

GIM – Pro Forma 12.56

Net Operating Income – Pro Forma $244,156

Total Return – Pro Forma 5.1% / $244,156

4This Information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are appoximate. Buyer must verify the information and bears all risk for any inaccuracies. © 2017 Marcus & Millichap Activity ID: Z0140359

lOcaTiOn highlighTs

5

WEST HOLLYWOOD

This Information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are appoximate. Buyer must verify the information and bears all risk for any inaccuracies. © 2017 Marcus & Millichap Activity ID: Z0140359

6

TRANSITSCORE

BIKESCORE

65

68

“GOOD TRANSIT”Many nearby public

transportation options

“BIKEABLE”Flat as a pancake, some

bike lanes

WALKSCORE91

“WALKER’S PARADISE”Daily errands do not

require a car

Demographics1-Mile 3-Miles 5-Miles

2014 Total Population 54,823 353,533 917,013

2019 Total Population 54,780 355,909 923,381

2014 Total Households 31,531 174,377 395,965

2019 Total Households 31,862 177,217 402,070

Median Household Income $40,204 $46,323 $43,031

Per Capital Income(Based on total Population) $38,848 $41,200 $33,898

Average (Mean) Household Income $67,108 $82,848 $77,859

Major Employers

Company Local Employees

Disney 14,991

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 3,122

SBE 3,002

Fire Dept-Station 61 3,000

Platinum Equity 2,575

Fire Insurance Exchange 2,300


PRIcIng and FInancIal analysIs


UnIt mIx

NO. OF UNITS

UNIT TYPE

APPROX. SF

CURRENT RENTS

RENT/SF

MONTHLY INCOME

PRO FORMA RENTS

RENT/SF

MONTHLY INCOME

18 Single 400 $735 - $1,525 $2.83 $22,847 $1,525 $3.81 $27,450

4 Bachelor Non-Conforming 250 $785 - $1,500 $4.57 $4,189 $785 - $1,500 $4.57 $4,189

18 + 4* TOTAL 8,224 $27,036 $31,639

Bachelor: 18%

Single: 82%

No. ofUnits

UnitType

Approx.Square

Feet

CurrentRents

Rent/SF

MonthlyIncome Pro Forma Rents Rent/

SFMonthlyIncome

18 Single 400 $735 - $1,525 $2.83 $22,847 $1,525 $3.81 $27,450

4 Bachelor Non-Conforming 250 $785 - $1,500 $4.57 $4,189 $785 - $1,500 $4.57 $4,189

18 + 4* TOTAL 8,224 $27,036 $31,639

* Non-Conforming

Unit Mix Unit Rent & Rent/SF

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$0

$200

$400

$600

$800

$1,000

$1,200

Single Bachelor

PRICING AND FINANCIAL ANALYSIS1235-39 N Detroit StreetWEST HOLLYWOOD, CA

This information has been secured from sources we believe to be reliable, but we make no representations or warranties,expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer mustverify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap RealEstate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

UNIT MIX

UnIt mIx UnIt Rent & Rent/sF

Single

82% Single

18% Bachelor

PRIcIng & FInancIal analysIs

* Non-Conforming

8

Bachelor



9

Income & exPenses

INCOME CURRENT PER UNIT PRO FORMA PER UNIT

GROSS POTENTIAL RENT $324,432 $18,024 $379,668 $21,093

Other Income

Laundry Income $2,640 $147 $2,640 $147

$2,640 $147 $2,640 $147

GROSS POTENTIAL INCOME $327,072 $18,171 $382,308 $21,239

Vacancy/Collection Allowance (GPR) 3.0% / $9,733 $541 3.0% / $11,390 $633

EFFECTIVE GROSS INCOME $317,339 $17,630 $370,918 $20,607

EXPENSES CURRENT PER UNIT PRO FORMA PER UNIT

Real Estate Taxes (1.1717%) $56,242 $3,125 $56,242 $3,125

Insurance $4,000 $222 $4,000 $222

Utilities $9,085 $505 $9,085 $505

Trash $1,898 $105 $1,898 $105

Repairs & Maintenance $11,000 $611 $11,000 $611

Unit Turnover $5,500 $306 $5,500 $306

On-Site Payroll $18,000 $1,000 $18,000 $1,000

Management Fee 4.0% / $12,694 $705 4.0% / $14,837 $824

Reserves & Replacements $4,400 $244 $4,400 $244

Landscaping $1,800 $100 $1,800 $100

TOTAL EXPENSES $124,619 $6,923 $126,762 $7,042

Expenses per SF $15.15 $15.41

% of EGI 39.3% 34.2%

NET OPERATING INCOME $192,720 $10,707 $244,156 $13,564


Rent Roll

UNIT NUMBER UNIT TYPE UNIT SF CURRENT RENT RENT/SF

1235-1 Single Vacant 400 $1,525 $3.81

1235-2 Single 400 $788 $1.97

1235-3 Single 400 $1,500 $3.75

1235-4 Single 400 $1,183 $2.96

** 1235-5 Bachelor Non-Conforming 250 $1,500 $6.00

1235-6 Bachelor Non-Conforming 250 $904 $3.62

1235-7 Bachelor Non-Conforming 250 $785 $3.14

1235-8 Bachelor Non-Conforming 250 $1,000 $4.00

1237-1 Single 400 $1,234 $3.09

1237-2 Single 400 $1,319 $3.30

1237-3 Single Vacant 400 $1,525 $3.81

1237-4 Single 400 $1,057 $2.64

1237-5 Single 400 $735 $1.84

1237-6 Single 400 $1,495 $3.74

1237-7 Single 400 $1,425 $3.56

1237-8 Single 400 $1,031 $2.58

1239-1 Single 400 $1,475 $3.69

1239-2 Single 400 $1,400 $3.50

1239-3 Single 400 $1,450 $3.63

1239-4 Single 400 $1,128 $2.82

1239-5 Single 400 $1,525 $3.81

1239-6 Single 400 $1,052 $2.63

2 TOTAL VACANT 800 $3,050

20 TOTAL OCCUPIED 7,400 $23,986

22 TOTAL 8,200 $27,036


**Manager’s Unit


FInancIal oveRvIew

PROPERTY DETAILS

Location1235-39 North Detroit Street


Price $4,800,000

Down Payment 100% / $4,800,000


Price/Legal Unit $266,667


Price/SF $583.66

CAP Rate-Current 4.02%

CAP Rate-Current (Legal Units Only) 3.41%

CAP Rate - Pro Forma 5.09%

GIM - Current 14.68

GIM - Current (Legal Units Only) 17.34

GIM - Pro Forma 12.56

Year Built / Renovated 1940

Lot Size 12,999

Type of Ownership Fee Simple

Annualized Operating DataIncome CURRENT PRO FORMA

Gross Potential Rent $324,432 $379,668

Other Income $2,640 $2,640

Gross Potential Income $327,072 $382,308

Less: Vacancy / Deductions (GPR) 3.0% / $9,733 3.0% / $11,390

Effective Gross Income $317,339 $370,918

Less: Expenses $124,619 $126,762

Net Operating Income $192,720 $244,156

Net Cash Flow Before Debt Service $192,720 $244,156

Expenses CURRENT PRO FORMA

Real Estate Taxes $56,242 $56,242

Insurance $4,000 $4,000

Utilities $9,085 $9,085

Trash $1,898 $1,898

Repairs & Maintenance $11,000 $11,000

Unit Turnover $5,500 $5,500

On-Site Payroll $18,000 $18,000

Management Fee $12,694 $14,837

Reserves & Replacements $4,400 $4,400

Landscaping $1,800 $1,800

Total Expenses $124,619 $126,762

Expenses / Unit $6,923 $7,042

Expenses / SF $15.15 $15.41

% of EGI 39.27% 34.18%


* Non-Conforming



18+4*UNITS

1940YEAR BUILT

8,224RENTABLE SF

12,999LOT SIZE

$4,800,000PRICE

$266,667PRICE PER LEGAL UNIT

$583.66PRICE PER SQUARE FOOT

3.41%CAP RATE- CURRENT (LEGAL UNITS ONLY)

5.09%CAP RATE - PRO FORMA

4.02%CAP RATE- CURRENT

1235-39 NORTH DETROIT STREETwest hollywood, ca 90046

* Non-Conforming

12

12.56GIM- PRO FORMA

14.68GIM - CURRENT

17.34GIM - CURRENT (LEGAL UNITS ONLY)


PRoPeRty descRIPtIon


RegIonal maP

1235-39 North Detroit Street



local maP




aeRIal Photo



PRoPeRty sUmmaRy

THE OFFERING

Property Address1235-39 North Detroit Street


Assessor’s Parcel Number 5531-008-007

Zoning WDR3C

SITE DESCRIPTION


Number of Buildings 3

Number of Stories 2

Year Built 1940


Lot Size 12,999

Type of Ownership Fee Simple

Parking 18 Open Parking Spaces

UTILITIES

Electric Separately Metered

Gas Separately Metered

CONSTRUCTION

Framing Wood

Exterior Stucco

Parking Surface Asphalt

Roof Flat


* Non-Conforming



PRoPeRty Photos


Recent sales


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

10)

1235-39 N Detroit Street1280 N Laurel Avenue821 Westmount Drive1114 N Kings Road1330 N Martel Avenue1400 N Gardner Street1042 N Crescent Heights Boulevard6565 W Fountain Avenue6871 Franklin Avenue7006 Lanewood Avenue7714-20 Hampton Avenue

15

RECENT SALES1235-39 N Detroit StreetWEST HOLLYWOOD, CA


RECENT SALES MAPRecent sales maP

1400 North Gardner Street

6871 Franklin Avenue

7006 Lanewood Avenue

6565 West Fountain Avenue

7714-20 Hampton Avenue

1114 North Kings Road

3

5


Recent sales

9

4

6

2

7

8

1

1280 North Laurel Avenue

1042 North Crescent Heights Boulevard

821 Westmount Drive

20

10 1330 North Martel Avenue


0.00

0.40

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1.60

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2.40

2.80

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3.60

4.00

Subject 1280N

LaurelAvenue

821Westmount

Drive

1114N

KingsRoad

1330N

MartelAvenue

1400N

GardnerStreet

7006Lanewood

Avenue

7714-20HamptonAvenue

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 1280N

LaurelAvenue

821Westmount

Drive

1114N

KingsRoad

1330N

MartelAvenue

1400N

GardnerStreet

7006Lanewood

Avenue


Average Cap Rate



CAP RATE AND GRM Average Price per Square Foot

Average Price per Unit

0.00

50.00

100.00

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600.00

Subject 1280N

LaurelAvenue

821Westmount

Drive

1114N

KingsRoad

1330N

MartelAvenue

1400N

GardnerStreet

1042N

CrescentHeights

Boulevard

6565W

FountainAvenue

6871FranklinAvenue

7006Lanewood

Avenue


0

40,000

80,000

120,000

160,000

200,000

240,000

280,000

320,000

360,000

400,000

Subject 1280N

LaurelAvenue

821Westmount

Drive

1114N

KingsRoad

1330N

MartelAvenue

1400N

GardnerStreet

1042N

CrescentHeights

Boulevard

6565W

FountainAvenue

6871FranklinAvenue

7006Lanewood

Avenue


14



PRICE PER SF AND PRICE PER UNIT

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

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500.00

550.00

600.00

Subject 1280N

LaurelAvenue

821Westmount

Drive

1114N

KingsRoad

1330N

MartelAvenue

1400N

GardnerStreet

1042N

CrescentHeights

Boulevard

6565W

FountainAvenue

6871FranklinAvenue

7006Lanewood

Avenue


0

40,000

80,000

120,000

160,000

200,000

240,000

280,000

320,000

360,000

400,000

Subject 1280N

LaurelAvenue

821Westmount

Drive

1114N

KingsRoad

1330N

MartelAvenue

1400N

GardnerStreet

1042N

CrescentHeights

Boulevard

6565W

FountainAvenue

6871FranklinAvenue

7006Lanewood

Avenue


14



PRICE PER SF AND PRICE PER UNIT

0.00

0.40

0.80

1.20

1.60

2.00

2.40

2.80

3.20

3.60

4.00

Subject 1280N

LaurelAvenue

821Westmount

Drive

1114N

KingsRoad

1330N

MartelAvenue

1400N

GardnerStreet

7006Lanewood

Avenue


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 1280N

LaurelAvenue

821Westmount

Drive

1114N

KingsRoad

1330N

MartelAvenue

1400N

GardnerStreet

7006Lanewood

Avenue


Average Cap Rate



CAP RATE AND GRM

aveRage caP Rate

aveRage GRM aveRage PRIce PeR UnIt

aveRage PRIce PeR sqUaRe Foot

SubjectSubject

Avg 17.89

Avg $414.84

Avg $302,191

Avg 3.14%

Subject

Recent sales

21

Subject

1280NorthLaurel

Avenue

1114NorthKingsRoad

1330NorthMartelAvenue

1400North

GardnerStreet

1280NorthLaurel

Avenue

1114NorthKingsRoad


1400North

GardnerStreet

1400North

GardnerStreet


1114NorthKingsRoad

1280NorthLaurel

Avenue

1042North

CrescentHeights

Boulevard

6565West

FountainAvenue

1280NorthLaurel

Avenue

1114NorthKingsRoad


1400North

GardnerStreet

1042North

CrescentHeights

Boulevard

6565West

FountainAvenue

821Westmount

Drive

821Westmount

Drive

821Westmount

Drive

821Westmount

Drive


1235-39 North Detroit StreetWest Hollywood, CA 90046

Subject Property

Total No. of Units: 22

Year Built: 1940

Rentable SF: 8,224

Lot Size: 12,999

Sales Price: $4,800,000

Price/Legal Unit: $266,667

Price/SF: $583.66

CAP Rate: 4.02% (All Units)

GRM: 14.68 (All Units)

NO. OF UNITS UNIT TYPE

18 Single

4 Bachelor Non-Conforming

Recent sales

sales comPaRables

22

1280 North Laurel AvenueWest Hollywood, CA 90046

Close of Escrow: 04/27/2017


Year Built: 1950

Rentable SF: 18,392

Lot Size: 19,580


Price/Unit: $322,000

Price/SF: $437.69

CAP Rate: 3.85%

GRM: 16.01


3 Studio

22 1 Bdr 1 Bath

1


Recent sales

sales comPaRables

23

821 Westmount DriveWest Hollywood, CA 90069



Year Built: 1958

Rentable SF: 6,367

Lot Size: 6,675



Price/SF: $403.83

CAP Rate: 3.25%

GRM: 17.05


8 1 Bdr 1 Bath

1 2 Bdr 2 Bath

2

1114 North Kings RoadWest Hollywood, CA 90069



Year Built: 1972

Rentable SF: 9,044

Lot Size: 8,276



Price/SF: $453.45

CAP Rate: 3.27%

GRM: 18.23


12 1 Bdr 1 Bath

3


1330 North Martel AvenueHollywood, CA 90046Close of Escrow: 08/30/2017


Year Built: 1968

Rentable SF: 13,746

Lot Size: 13,504



Price/SF: $371.02

CAP Rate: 3.25%

GRM: 16.74


2 Single

11 1 Bdr 1 Bath

1 2 Bdr 1.5 Bath

3 2 Bdr 1.75 Bath

1 3 Bdr 1.75 Bath

4

Recent sales

sales comPaRables

24

1400 North Gardner StreetHollywood, CA 90046Close of Escrow: 10/06/2017


Year Built: 1954

Rentable SF: 13,193

Lot Size: 14,963



Price/SF: $443.42

CAP Rate: 3.21%

GRM: 17.22


16 1 Bdr 1 Bath

4 2 Bdr 1 Bath

5


1042 North Crescent Heights BoulevardWest Hollywood, CA 90046



Year Built: 1922

Rentable SF: 6,230

Lot Size: 13,068



Price/SF: $527.77


7 1 Bdr 1 Bath

1 2 Bdr 1 Bath

6

Recent sales

sales comPaRables

25

6565 West Fountain AvenueLos Angeles, CA 90028Close of Escrow: 09/01/2017


Year Built: 1962

Rentable SF: 29,304

Lot Size: 27,983



Price/SF: $366.84


42 1 Bdr 1 Bath

7


Recent sales

6871 Franklin AvenueLos Angeles, CA 90028Close of Escrow: 12/19/2017


Year Built: 1958

Rentable SF: 18,155

Lot Size: 15,246



Price/SF: $475.08


2 Single

28 1 Bdr 1 Bath

8

sales comPaRables

26

7006 Lanewood AvenueLos Angeles, CA 90028Close of Escrow: 11/29/2017


Year Built: 1958

Rentable SF: 12,306

Lot Size: 10,006



Price/SF: $363.24

CAP Rate: 2.90%

GRM: 19.04


4 Single

14 1 Bdr 1 Bath

9


Recent sales

sales comPaRables

27

7714-20 Hampton AvenueWest Hollywood, CA 90046



Year Built: 1965

Rentable SF: 20,094

Lot Size: 16,326



Price/SF: $306.06

CAP Rate: 2.23%

GRM: 20.94


2 Single

15 1 Bdr 1 Bath

5 2 Bdr 2 Bath

10


sales comPaRable sUmmaRy

ADDRESS CLOSE OF ESCROW

NO. OF UNITS

YEAR BUILT

SALES PRICE

PRICEPER UNIT

PRICEPER SF CAP RATE GRM

11280 North Laurel AvenueWest Hollywood, CA 90046 04/27/2017 25 1950 $8,050,000 $322,000 $437.69 3.85% 16.01

2821 Westmount Drive

West Hollywood, CA 90069 03/01/2018 9 1958 $2,700,000 $300,000 $403.83 3.25% 17.05

31114 North Kings Road

West Hollywood, CA 90069 12/27/2017 12 1972 $4,101,000 $341,750 $453.45 3.27% 18.23

41330 North Martel Avenue

Hollywood, CA 90046 08/30/2017 18 1968 $5,100,000 $283,333 $371.02 3.25% 16.74


Hollywood, CA 90046 10/06/2017 20 1954 $5,850,000 $292,500 $443.42 3.21% 17.22

61042 North Crescent Heights Boulevard

West Hollywood, CA 90046 04/03/2018 8 1922 $3,288,000 $411,000 $527.77 -- --

76565 West Fountain Avenue

Los Angeles, CA 90028 09/01/2017 42 1962 $10,750,000 $255,952 $366.84 -- --

86871 Franklin Avenue

Los Angeles, CA 90028 12/19/2017 30 1958 $8,625,000 $287,500 $475.08 -- --

97006 Lanewood AvenueLos Angeles, CA 90028 11/29/2017 18 1958 $4,470,000 $248,333 $363.24 2.90% 19.04

107714-20 Hampton AvenueWest Hollywood, CA 90046 04/27/2017 22 1965 $6,150,000 $279,545 $306.06 2.23% 20.94

AVERAGES 20 1957 $5,908,400 $302.91 $414.84 3.14% 17.89

* 1235-39 North Detroit StreetWest Hollywood, CA 90046

Subject Property 18+4 1940 $4,800,000 $266,667 $583.66

4.02% ALL UNITS

3.41% LEGAL UNITS

14.68 ALL UNITS

17.34 LEGAL UNITS


Rent comPaRables


1)2)3)4)5)

1235-39 N Detroit Street1001 N Gardner Street1334 N Laurel Avenue1227 N Harper Avenue1314 N Vista Street1422 N Martel Avenue

23

RENT COMPARABLES1235-39 N Detroit StreetWEST HOLLYWOOD, CA


RENT COMPARABLES MAPRent comPaRable maP

1314 North Vista Street

1227 North Harper Avenue



1422 North Martel Avenue

Rent comPaRables

1334 North Laurel Avenue5

2 4

1

3


average renTs - BachelOr/single

Bachelor Single

0

200

400

600

800

1,000

1,200

1,400

1,600

Subject 1001N

GardnerStreet

1334N

LaurelAvenue

1227N

HarperAvenue

1314N

VistaStreet

1422N

MartelAvenue

Average Rents - Bachelor/Single and

RENT COMPARABLES1235-39 N Detroit StreetWEST HOLLYWOOD, CA


OCCUPANCY AND AVERAGE RENTS

Subject

Rent comPaRables

Avg $1,627

31

1001NorthGarnerStreet

1334NorthLaurel

Avenue

1227NorthHarperAvenue

1314NorthVistaStreet



AmenitiesProperty features a breakfast nook, mirrored closet doors, and on-site laundry.

1235-39 North Detroit StreetWest Hollywood, CA 90046

Total No. of Units 18 + 4*

Year Built 1940

1

1001 North Gardner StreetWest Hollywood, CA 90046

Total No. of Units 18

Year Built 1960

UNIT TYPE SF RENT RENT/SF

Single 520 $1,595 $3.07

TOTAL/WTD. AVG. $1,595


Single 400 $735 - $1,525 $2.83

Bachelor Non-Conforming 250 $785 - $1,500 $4.57

TOTAL/WTD. AVG. 8,224 $1,136 $3.19

Rent comPaRables

Rent comPaRables

* Non-Conforming


AmenitiesProperty features tile flooring, granite countertops, and on-site laundry.

1334 North Laurel AvenueWest Hollywood, CA 90046


Year Built 1927

2


Single 500 $1,695 $3.39


Rent comPaRables

Rent comPaRables

33

1227 North Harper AvenueWest Hollywood, CA 90046


Year Built 1955

3


Single 480 $1,599 $3.33


AmenitiesProperty features a swimming pool, dedicated parking space, carpet flooring, and paid electricity.


AmenitiesProperty features walk-in closet, balcony, new tile flooring, and on-site laundry.

1422 North Martel AvenueHollywood, CA 90046


Year Built 1988

5


Single 512 $1,650 $3.22


AmenitiesProperty features washer/dryer hookups, porcelain tile flooring, recessed lighting, walk-in closet, crown moulding, and a BBQ area.

1314 North Vista StreetHollywood, CA 90046


Year Built 1914


Single 500 $1,595 $3.19


4

Rent comPaRables

Rent comPaRables


demogRaPhIc analysIs


demogRaPhIc RePoRt

Population 1 MILE 3 MILES 5 MILES Income 1 MILE 3 MILES 5 MILES

2010 POPULATION 56,343 350,858 909,205 $0 $14,999 20.7% 17.4% 17.8%

2010 POPULATION 51,899 338,276 884,097 $15,000 $24,999 12.3% 12.2% 13.5%

2014 POPULATION 54,823 353,533 917,013 $25,000 $34,999 12.1% 10.4% 11.1%

2019 POPULATION 54,780 355,909 923,381 $35,000 $49,999 13.5% 12.5% 13.3%

$50,000 $74,999 16.6% 15.7% 15.2%

Households 1 MILE 3 MILES 5 MILES $75,000 $99,999 8.4% 9.2% 8.6%

2000 HOUSEHOLDS 30,056 164,764 374,732 $100,000 $124,999 5.6% 6.9% 6.3%

2010 HOUSEHOLDS 29,510 164,451 375,884 $125,000 $149,999 3.2% 3.9% 3.6%

2014 HOUSEHOLDS 31,531 174,377 395,965 $150,000 $199,999 2.8% 4.3% 3.9%

2019 HOUSEHOLDS 31,862 177,217 402,070 $200,000 $249,999 1.6% 2.4% 2.2%

$250,000 + 3.2% 5.0% 4.5%

2014 AVERAGE HOUSEHOLD SIZE 1.71 1.99 2.28

2014 MEDIAN HOUSEHOLD INCOME $40,204 $46,323 $43,031

2014 DAYTIME POPULATION 26,547 166,712 428,373 2014 PER CAPITAL $38,848 $41,200 $33,898

2000 OWNER OCCUPIED HOUSING UNITS 12.52% 21.21% 22.81% 2014 AVERAGE HOUSEHOLD INCOME $67,108 $82,848 $77,859

2000 RENTER OCCUPIED HOUSING UNITS 83.86% 74.58% 72.60%

2000 VACANT 3.62% 4.21% 4.59%

2014 OWNER OCCUPIED HOUSING UNITS 13.32% 21.59% 23.25%


2014 VACANT 1.18% 2.78% 3.13% Demographic data © 2012 by Experian.

2019 OWNER OCCUPIED HOUSING UNITS 13.35% 21.58% 23.20%


2019 VACANT 0.98% 2.74% 3.06%



demogRaPhIc sUmmaRy

POPULATION

In 2014, the population in your selected geography is 917,013. The population has changed by 0.85% since 2000. It is estimated that the population in your area will be 923,381 five years from now, which represents a change of 0.69% from the current year. The current population is 50.59% male and 49.40% fe-male. The median age of the population in your area is 36.4, compare this to the Entire US average which is 37.3. The population density in your area is 11,673.92 people per square mile.

HOUSEHOLDS

There are currently 395,964 households in your selected geography. The num-ber of households has changed by 5.66% since 2000. It is estimated that the number of households in your area will be 402,069 five years from now, which represents a change of 1.54% from the current year. The average household size in your area is 2.28 persons.

INCOME

In 2014, the median household income for your selected geography is $43,030, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 30.97% since 2000. It is esti-mated that the median household income in your area will be $50,037 five years from now, which represents a change of 16.28% from the current year.

The current year per capita income in your area is $33,897, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $77,859, compare this to the Entire US average which is $74,533.

RACE & ETHNICITY

The current year racial makeup of your selected area is as follows: 51.48% White, 8.10% Black, 0.10% Native American and 15.74%Asian/Pacific Island-er. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 38.49% of the current year population in your selected area. Compare this to the Entire US average of 17.13%.

HOUSING

In 2000, there were 89,579 owner occupied housing units in your area and there were 285,152 renter occupied housing units in your area. The median rent at the time was $618.

EMPLOYMENT

In 2014, there are 428,372 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 64.08% of employ-ees are employed in white-collar occupations in this geography, and 35.84% are employed in blue-collar occupations. In 2014, unemployment in this area is 10.10%. In 2000, the average time traveled to work was 31.9 minutes.

GeoGraphy: 5 miles



Number of people living in a given area per square mile.

Demographic data © 2012 by Experian.

DEMOGRAPHIC ANALYSIS1235-39 N Detroit StreetWEST HOLLYWOOD, CA

THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED ANAPPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations orwarranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus &Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

POPULATION DENSITY

PoPUlatIon densIty



The number of people employed in a given area per square mile.




EMPLOYMENT DENSITY

emPloyment densIty



Average income of all the people 15 years and older occupying a single housing unit.




AVERAGE HOUSEHOLD INCOME

aveRage hoUsehold Income



Index of the relative risk of crime in a given area.

Crime data © 2012 by Applied Geographic Solutions.



TOTAL CRIME RISK

total cRIme RIsk


41

tRaFFIc coUnts

Two-way, average daily traffic volumes.Traffic Count data © 2012 by TrafficMetrix. All rights reserved.



TRAFFIC COUNTS

* Traffic Count Estimate



Rick E. RaymundoSenior Managing Director Investments

Senior Director, National Multi Housing Group


(213) 943-1961 Fax(818) 219-6146 Mobile

[email protected]

Offices Throughout the U.S. and Canadawww.MarcusMillichap.com



EXCLUSIVELY LISTED BY:

Anthony Rodriguez, MBAAssociate Member

National Multi Housing Group


(213) 943-1961 Fax(949) 343-0202 Mobile

[email protected]

Documents

OFFERING MEMORANDUM 9 noRth detRoIt stReet€¦ · This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish