Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
THE EMERALD
O F F E R I N G M E M O R A N D U M
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N OT I C EN O N - E N D O R S E M E N T SMarcus & 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.
D I S C L A I M E RTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressor 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 service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.
T H E E M E R A L D1016 N O R T H M A R K E T S T R E E T
I N G L E W O O D, C A , 90302
O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A
WWW.MARCUSMILLICHAP.COM
07 21PROPER T Y ANALYSISS E C T I O N 1 Location Overview • Executive Summary • Investment Overview • Market Overview • Financial Summary • Comparable Properties • Demographics
TA B L E O F CO N T E N T S
PRESENTED BY
T H E E M E R A L D
1016 N O R T H M A R K E T S T R E E TI N G L E W O O D , C A , 9 0 3 0 2
F INANCIAL ANALYSISS E C T I O N 2 Pricing Details • Operating Data • Sales Comparables • Rent comparables
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 infor-mation. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID ZAA0140047
7
10
16
N
or
th
M
ar
ke
t
St
re
et
//
P
RO
PE
RT
Y
AN
AL
YS
IS
PROPER T YANALYSIS
1016 NORTH MARKET STREET
O F F E R I N G H I G H L I G H T S
O F F E R I N G P R I C E
$2,100,000C A P R AT E
2.92%
VITAL DATA
Price $2,100,000
Cap Price 2.92%
GRM 17.68
Price per Unit $262,500
Price per Square Foot $348.43
Rentable Square Feet 6,027
Number of Units 8
1016 N O R T H M A R K E T S T R E E TI N G L E W O O D , C A , 9 0 3 0 2
10
16
N
or
th
M
ar
ke
t
St
re
et
//
P
RO
PE
RT
Y
AN
AL
YS
IS
8
10
16
N
or
th
M
ar
ke
t
St
re
et
//
P
RO
PE
RT
Y
AN
AL
YS
IS
9
I N V E S T M E N T O V E R V I E WMarcus & Millichap, as the exclusive listing agent, is proud to present The Emerald, an eight unit apartment community located at 1016 North Market Street in Inglewood, California.
Located in a gentrifying North Inglewood submarket, the building features 6,027 square feet of gross area and it sits on a 6,558 square foot lot. Built in 1964, the asset is comprised of a terrific unit mix of five one-bedroom/one-bathroom units, two two-bedroom/one-bathroom units and one three-bedroom/two-bathroom unit.
The building is located just north of Centinela Avenue and east of North La Brea Avenue. The offering is just a few miles away from the revamped Forum and the new Hollywood Park redevelopment site. The new NFL stadium, along with a 300‐room hotel, over 3,000 units and new retail and office space will be going into the site.
This property provides a great value add opportunity with current rents well below market value. 1016 North Market Street can be a terrific addition to any investor’s portfolio.
10
16
N
or
th
M
ar
ke
t
St
re
et
//
P
RO
PE
RT
Y
AN
AL
YS
IS
10
► Attractive North Inglewood Location ► Value-Add Opportunity with Below
Market Rents ► Borders Residential Community of
Ladera Heights ► Walking Distance to Major Retailers Such
as Ralphs and Dollar Tree ► Easy Access to Major Employment Hubs
of the Westside ► Two Double Car Garages with Ample
Covered Spaces ► Secured Gated Access ► Individually Metered
10
16
N
or
th
M
ar
ke
t
St
re
et
//
P
RO
PE
RT
Y
AN
AL
YS
IS
11
P R O P E R T Y P H OTO S
10
P R O P E R T Y D E TA I L S
Property Address1016 North Market Street
Inglewood, CA, 90302
Number of Units 8
Number of Buildings 1
Year Built 1964
Lot Size 6,558 SF
Parking18 Spaces – 16 Tandem Spaces &
2 Two Car Garages
Zoning INC2YY
APN (Parcel No.) 4014-032-023
10
16
N
or
th
M
ar
ke
t
St
re
et
//
P
RO
PE
RT
Y
AN
AL
YS
IS
14
1016 NORTH MARKET STREET
10
16
N
or
th
M
ar
ke
t
St
re
et
//
P
RO
PE
RT
Y
AN
AL
YS
IS
15
MARKE TINGTEAM
PROPERTY NAME HERE
LOCATION OVERVIEW
16
THE SOUTH BAYThe South Bay is a region of the Los Angeles metropolitan area which contains fifteen cities plus portions of the City of Los Angeles and unincorporated portions of the County of Los Angeles. The area
is bounded by the Pacific Ocean on the south and west and generally by the City of Los Angeles on the
north and east. Its name comes from its location on the south end of the Santa Monica Bay.
Major areas of the South Bay include: the beach cities of Manhattan Beach, Hermosa Beach, and
Redondo Beach, a popular destination for swimmers, surfers, bodyboarders, and other beachgoers;
the Palos Verdes Peninsula, home to the affluent communities of Palos Verdes Estates, Rancho Palos
Verdes, Rolling Hills, and Rolling Hills Estates; the Los Angeles harbor neighborhoods of San Pedro
and Wilmington; and the inland cities of Inglewood, Hawthorne, Gardena, Lawndale, Lomita, and
Carson. The Harbor (110), San Diego (405), Gardena (91), and Century (105) Freeways provide the
region with its principal transportation links to the rest of Southern California.
The South Bay is heavily reliant on the aerospace and automotive industries, and is home to numerous
industry headquarters. It has two major transportation hubs on its borders — Los Angeles International Airport and the Ports of Los Angeles and Long Beach and the Pacific Ocean is at its back door. These
factors, and its diverse cities, make it economically, geographically and socially unique.
LA STADIUM AT HOLLYWOOD PARK
V IEW OF SOUTH BAY
M A J O R I N D U S T R I E S
SPACEX
AEROSPACE | HAWTHORNE
Space Exploration Technologies Corp., doing business as SpaceX, is a private
American aerospace manufacturer and space transport services company
headquartered in Hawthorne, California. It was founded in 2002 by
entrepreneur Elon Musk with the goal of reducing space transportation
costs and enabling the colonization of Mars. SpaceX has since developed the
Falcon launch vehicle family and the Dragon spacecraft family, which both
currently deliver payloads into Earth orbit.
TESLA
AUTOMOTIVE & ENERGY | HAWTHORNE
Tesla is an American company that specializes in electric automotives, energy
storage and solar panel manufacturing, whose design studio is located in
Hawthorne. Founded in 2003, the company specializes in electric cars,
lithium-ion battery energy storage, and residential photovoltaic panels
(through the subsidiary company SolarCity). The additional products Tesla
sells include the Tesla Powerwall and Powerpack batteries, solar panels and
solar roof tiles.
S O U T H B A Y
HONDA
AUTOMOTIVE | TORRANCE
The American Honda Motor Company, Inc. is a North American subsidiary of
the Honda Motor Company, Ltd., founded in 1959. The company combines
product sales, service and coordinating functions of Honda in North America,
and is responsible for distribution, marketing and sales of Honda and Acura
brand automobiles, Honda power sports products, including motorcycles,
scooters and all-terrain vehicles, and Honda power equipment products,
including lawnmowers, tillers, string trimmers, generators, small
displacement general-purpose engines and marine outboard engines.
CHEVRON
OIL REFINING | EL SEGUNDO
Chevron Corporation is an American multinational energy corporation, one
of the successor companies of Standard Oil. Chevron is engaged in every
aspect of the oil, natural gas, and geothermal energy industries. The Chevron
El Segundo Refinery is the largest producing oil refinery on the west coast,
processing more than 274,000 barrels of crude oil per day. It provides jobs for
more than 1,100 Chevron employees and 500 contractors, covers approximately
1,000 acres, and has more than 1,100 miles of pipelines. Transportation fuels –
gasoline, jet and diesel – are the primary products refined from the crude oil.
S O U T H B A Y
HONDA
AUTOMOTIVE | TORRANCE
The American Honda Motor Company, Inc. is a North American subsidiary of
the Honda Motor Company, Ltd., founded in 1959. The company combines
product sales, service and coordinating functions of Honda in North America,
and is responsible for distribution, marketing and sales of Honda and Acura
brand automobiles, Honda power sports products, including motorcycles,
scooters and all-terrain vehicles, and Honda power equipment products,
including lawnmowers, tillers, string trimmers, generators, small
displacement general-purpose engines and marine outboard engines.
CHEVRON
OIL REFINING | EL SEGUNDO
Chevron Corporation is an American multinational energy corporation, one
of the successor companies of Standard Oil. Chevron is engaged in every
aspect of the oil, natural gas, and geothermal energy industries. The Chevron
El Segundo Refinery is the largest producing oil refinery on the west coast,
processing more than 274,000 barrels of crude oil per day. It provides jobs for
more than 1,100 Chevron employees and 500 contractors, covers approximately
1,000 acres, and has more than 1,100 miles of pipelines. Transportation fuels –
gasoline, jet and diesel – are the primary products refined from the crude oil.
LA STADIUM AT HOLLYWOOD PARK
The Los Angeles Stadium and Entertainment District at Hollywood Park is transforming
the site of the former Hollywood Park Racetrack to a year-round sports and
entertainment destination for the enjoyment of people throughout Southern
California as well as visitors to the region. This will be the new “must-see”
entertainment destination and gathering spot in the center of the Los Angeles basin
and in the heart of the South Bay region.
This monumental project covers 298 acres located two miles off the I405-, one and
a half miles off the I105-, and four miles from Los Angeles International Airport. The
centerpiece of the district is a -70,000seat stadium that will be the home of NFL
games for both the Los Angeles Chargers and Los Angeles Rams. The stadium will
feature sporting events including the Super Bowl and the Opening and Closing
ceremonies of the 2028 Olympics being held in Los Angeles, as well as major concerts
and other entertainment year-round.
PLANS FOR THE DISTRICT INCLUDE:
► 70,000 Seat Open Air Stadium, Expandable up to 100,000 Seats
► 6,000 Seat Performing Arts Venue
► 780,000 Square Feet of Office Space
► 890,000 Square Feet of Retail Space
► 300 Hotel Rooms
► 2,500 Modern Residences
► Approximately 25 Acres of Public Parks, Open Space, Pedestrian Walkways and Bicycle Paths
► Family and Fine Dining
► State-of-The-Art Event, Conference and Meeting Space
TRANSPORTATION
The South Bay is home to Los Angeles’ two largest transportation hubs — Los
Angeles International Airport and the Ports of Los Angeles and Long Beach.
It is served by the Harbor (110), San Diego (405), Gardena (91), and Century
(105) Freeways, as well as the Metro Green and Silver (Rapid Bus) lines.
METRO GREEN LINE EXTENSION
Bolstered by $619 million from the Measure M sales tax, Metro is forging ahead
with plans to extend service on the Green and Crenshaw/LAX Lines 4.6 miles
southward to a new transit center in Torrance. The light rail extension would
primarily traverse the Harbor Subdivision - a historic freight rail right-of-way
which runs along a meandering route between Downtown and the Port of Los
Angeles. Metro is also considering a second alternative, which would see
trains routed down Hawthorne Boulevard between the 405 Freeway and 190th
Street in Redondo Beach, before returning to the Harbor Subdivision.
Metro Green Line
Metro Silver Line (Rapid Bus)
Metro Blue Line
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 infor-mation. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID ZAA0140047
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 infor-mation. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID ZAA0140047
MARKE TINGTEAM
PROPERTY NAME HERE
FINANCIAL ANALYSIS1016 NORTH MARKET STREET
23
R E N T R O L L
*Square Footage of units are estimated
UNIT NUMBER UNIT TYPE UNIT SQFT CURRENT RENT RENT PER SQFT ASKING RENT RENT PER SQFT
1 2 Bed / 1 Bath 850 $1,375 $1.62 $2,000 $2.35
2 1 Bed / 1 Bath 625 $1,050 $1.68 $1,600 $2.56
3 1 Bed / 1 Bath 625 $1,050 $1.68 $1,600 $2.56
4 1 Bed / 1 Bath 625 $1,050 $1.68 $1,600 $2.56
5 2 Bed / 1 Bath 850 $1,575 $1.85 $2,000 $2.35
6 1 Bed / 1 Bath 625 $1,050 $1.68 $1,600 $2.56
7 1 Bed / 1 Bath 625 $1,050 $1.68 $1,600 $2.56
8 3 Bed / 2 Bath 1,200 $1,700 $1.42 $2,350 $1.96
Totals 6,027 $9,900 $14,350
1016 N O R T H M A R K E T S T R E E TI N G L E W O O D , C A 9 0 3 0 2
# OF UNITS UNIT TYPE SQFT/UNIT CURRENT RENTS INCOME PRO FORMA RENTS PRO FORMA INCOME
5 1 Bed / 1 Bath 625 $1,050 $5,250 $1,600 $8,000
2 2 Bed / 1 Bath 850 $1,375 - $1,575 $2,950 $2,000 $4,000
1 3 Bed / 2 Bath 1,200 $1,700 $1,700 $2,350 $2,350
TOTALS 6,027 $9,900 $14,350
F I N A N C I A L O V E R V I E W
PRICE $2,100,000
Number of Units 8
Cap Rate - Current 2.92%
Cap Rate - Pro Forma 5.45%
GRM - Current 17.68
GRM - Pro Forma 12.20
Price per Unit $262,500
Rentable SQFT 6,027
Price per SQFT $348.43
Lot Size 6,558
Year Built 1964
Type of Ownership Fee Simple
INCOME CURRENT PRO FORMA
Gross Scheduled Rent $118,800 $172,200
Other Income (Laundry) N/A $1,200
Other Income (Garage) N/A $2,400
Gross Potential Income $118,800 $175,800
Less: Vacancy/Deductions 3.00% $3,564 3.00% $5,166
Effective Gross Income $115,236 $170,634
Less: Expenses 46.77% $53,893 32.88% $56,109
Net Operating Income $61,343 $114,525
EXPENSES CURRENT PRO FORMA
Real Estate Taxes $27,056 $27,056
Insurance $2,410 $2,410
Water/Trash $9,228 $9,228
Electricity $707 $707
Gas $2,843 $2,843
Repairs & Maintenance $4,000 $4,000
Reserves & Replacements $1,600 $1,600
Management Fee $4,609 $6,825
Landscaping $1,440 $1,440
Total Expenses $53,893 $56,109
Expenses/Unit $6,737 $7,014
Expenses/SF $8.94 $9.31
% of EGI 46.77% 32.88%
S A L E S CO M PA R A B L E S – S U M M A R Y
Average Cap Rate
Average Price per Unit
Average GRM
Average Price per SQFT
Avg 3.89%
Avg $270,000Avg $352.59
Avg 15.71
2
1
3
814 N O R T H M A R K E T S T R E E TInglewood, CA 90302
1016 NORTH MARKET STREETInglewood, CA 90302
1
S A L E S CO M PA R A B L E S
SALES PRICE $2,100,000
Year Built 1964
Number of Units 8
Price Per Unit $262,500
Price Per SQFT $348.43
Cap Rate 2.92%
GRM 17.68
SALES PRICE $1,325,000
Sale Date 01/18/2018
Year Built 1960
Number of Units 5
Price Per Unit $265,000
Price Per SQFT $359.76
UNIT MIX
5 1 Bed / 1 Bath
2 2 Bed / 1 Bath
1 3 Bed / 2 Bath
UNIT MIX
4 1 Bed / 1 Bath
1 3 Bed / 2 Bath
10
16
N
or
th
M
ar
ke
t
St
re
et
//
F
IN
AN
CI
AL
A
NA
LY
SI
S
28
UNIT MIX
1 Studio / 1 Bath
3 1 Bed / 1 Bath
1 3 Bed / 2 Bath
820 CO R Y D R I V EInglewood 90302
823 S O U T H G R E V I L L E A AV E N U EInglewood 90301
32
UNIT MIX
4 1 Bed / 1 Bath
2 2 Bed / 1 Bath
SALES PRICE $1,475,000
Sale Date 06/11/2018
Year Built 1964
Number of Units 5
Price Per Unit $295,000
Price Per SQFT $370.79
Cap Rate 3.92%
GRM 15.56
SALES PRICE $1,500,000
Sale Date 04/02/2018
Year Built 1954
Number of Units 6
Price Per Unit $250,000
Price Per SQFT $327.23
Cap Rate 3.86%
GRM 15.85 10
16
N
or
th
M
ar
ke
t
St
re
et
//
F
IN
AN
CI
AL
A
NA
LY
SI
S
29
R E N T CO M PA R A B L E S – S U M M A R Y
UNIT TYPE RENT
1. 875 Glenway Avenue 1 Bed / 1 Bath $1,650
2. 821 Austin Avenue 1 Bed / 1 Bath $1,800
3. 909 West Beach Boulevard 1 Bed / 1 Bath $1,625
3. 909 West Beach Boulevard 2 Bed / 1.5 Bath $2,050
4. 702 Venice Way 2 Bed / 2 Bath $2,100
5. 310 South Eucalyptus Avenue 3 Bed / 2.5 Bath $2,350
6. 326 East Hazel Street 3 Bed / 3 Bath $2,400
7. 560 West Olive Street 3 Bed / 3 Bath Twnhs $2,700
10
16
N
or
th
M
ar
ke
t
St
re
et
//
F
IN
AN
CI
AL
A
NA
LY
SI
S
30
PR
OP
ER
TY
N
AM
E
HE
RE
//
C
OM
PA
RA
BL
E
PR
OP
ER
TI
ES
2
1
5
3
4
7
6
10
16
N
or
th
M
ar
ke
t
St
re
et
//
F
IN
AN
CI
AL
A
NA
LY
SI
S
31
875 G L E N WAY AV E N U EInglewood, CA 903021016 N O R T H M A R K E T S T R E E T
Inglewood, CA 90302
1
R E N T CO M PA R A B L E S
Number of Units 48
Year Built 1964
UNIT T YPE RENT
1 Bed / 1 Bath $1,050
2 Bed / 1 Bath $1,375 - $1,575
3 Bed / 2 Bath $1,700
UNIT T YPE RENT
1 Bed / 1 Bath $1,650
Number of Units 8
Year Built 1964
10
16
N
or
th
M
ar
ke
t
St
re
et
//
F
IN
AN
CI
AL
A
NA
LY
SI
S
32
909 W E S T B E AC H B O U L E VA R DInglewood, CA 90302
821 AU S T I N AV E N U EInglewood, CA 90302
32
UNIT T YPE RENT
1 Bed / 1 Bath $1,800
UNIT T YPE RENT
1 Bed / 1 Bath $1,625
2 Bed / 1.5 Bath $2,050
Number of Units 24
Year Built 1989
Number of Units 8
Year Built 1962
10
16
N
or
th
M
ar
ke
t
St
re
et
//
F
IN
AN
CI
AL
A
NA
LY
SI
S
33
702 V E N I C E WAYInglewood, CA 90302
4 310 S O U T H E U C A LY P T U S AV E N U EInglewood, CA 90301
5
UNIT T YPE RENT
2 Bed / 2 Bath $2,100
UNIT T YPE RENT
3 Bed / 2.5 Bath $2,350
Number of Units 47
Year Built 1961
Number of Units 8
Year Built 1964
10
16
N
or
th
M
ar
ke
t
St
re
et
//
F
IN
AN
CI
AL
A
NA
LY
SI
S
34
560 W E S T O L I V E S T R E E TInglewood, CA 90301
326 E A S T H A Z E L S T R E E TInglewood, CA 90302
76
UNIT T YPE RENT
3 Bed / 3 Bath $2,400
UNIT T YPE RENT
3 Bed / 3 Bath $2,700
Number of Units 7
Year Built 1993
Number of Units 12
Year Built 2007
1016 NORTH MARKET STREET