TROPHY 4-UNIT BUILDING FOR SALE · 2018. 9. 4. · Trophy 4-Unit Building For Sale Area Overview 3214-3216 Manhattan Ave Manhattan Beach, CA 90226 The information above has been obtained

TROPHY 4-UNIT BUILDING FOR SALE3214-3216 Manhattan Ave

Manhattan Beach, CA 90226

Woody Stahl | (310) [email protected]

Trophy 4-Unit Building For Sale

INVESTMENT SUMMARY

Investment Overview

Regional Map

AREA OVERVIEW

Local Map

City Overview

County Overview

Aerial Map

PROPERTY DESCRIPTION

Property Details

3D Map

FINANCIALS

Offering Summary

Net Income Statment

Rent Roll

Unit Mix

COMPARABLES

Sales Comparable Map

Sales Comparables

Rental Comparable Map

Rental Comparables

On Market Comparable Map

On Market Comparables

EXCLUSIVELY MARKETED BY :

Lyon Stahl Investment Real Estate

Brett Lyon

(310) 780-1899

[email protected]

Lic. 01717818

Woody Stahl

(310) 710-3829

[email protected]

Lic. 01399621


Investment Summary

3214-3216 Manhattan AveManhattan Beach, CA 90226

The information above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its accuracy.

Investment SummaryPriceCap RateNOIGRMUnitsOccupancyBuilding SizePrice per Square FootLand AreaOwnership

$5,600,000 2.81%

$157,292.00 23.33

4100.00%4,191 SF$1,336.20 3,497 SF

Fee Simple

Investment Highlights

4-unit apartment building located 1 block from The Strand●

Currently generates almost $20,000 in monthly rental income | Total building●

area of 4,191 SFExcellent unit mix consisting of (1) 3-bed/2-bath and (3) 2-bed/2-bath units●

Exterior has been recently repainted | (3) Tandem Garages & (3) 1-Car●

GaragesPotential to build two (2) townhomes on the lot●

Close proximity to restaurants and retailers●

Investment DescriptionLyon | Stahl is pleased to present 3214 Manhattan Ave, a highly sought-after 4-unit building located a block from the beach. This 4,191 SF building (BOMAReport) was built in 1973 and is situated on a 3,497 SF lot. The property has aunit mix consisting of one (1) 3-bed/2-bath and three (3) 2-bed/ 2-bath units.The property is currently operating at a 2.81% CAP Rate with the capability ofperforming at a 3.49% CAP with the remodeling of the interior of the units.Conveniently located along Manhattan Ave, the building includes three (3)tandem garages, three (3) single-car garages, and a private deck & balconieswith magnificent ocean views. With the potential to build two (2) townhomeson the lot, this is an excellent sand-section investment opportunity inManhattan Beach.


Investment Summary



Regional Map


Area Overview



Local Map


Area Overview



● Los Angeles County is the world’s 18th largest economy.● Los Angeles part of the "Tech Coast" and is regarded as the of the main

entrepreneurial regions of the world. It has approximately 200,000 smallbusinesses, which is twice as many small businesses as can be found in anyother region of the United States.

● If Los Angeles' five county area were a state, it would be the fourth largest inthe United States.

● Los Angeles has more than 80 stage theaters and 300 museums, more thanany other U.S city.

Area OverviewManhattan Beach is an affluent suburb in southwest LA, neighboring El Segundo and Hermosa Beach. Manhattan Beach is the second most educated city in LA County and the fifth most educated city in California, according to US Census data.

Known for its clean, wide beaches, Manhattan Beach attracts over 3.8 million visitors annually. Various paths for walking and biking include The Strand, Greenbelt, and a concrete bikeway along the beach that extends from Palos Verdes north to Santa Monica. Restrooms and showers are provided adjacent to the Strand paths to wash up after beach volleyball, body boarding, surfing, or swimming.

The Manhattan Beach Unified School District was ranked sixth best in the United States by Forbes and has test scores ranked third best in California, according to California Department of Education statistics. Mira Costa High School in Manhattan Beach is ranked in the top 1% of high schools nationally.

Forbes has named Manhattan Beach one of America’s most expensive areas. The Manhattan Beach real estate market outprices the Los Angeles-Long Beach-Anaheim Metro average per square foot by almost three times. The median price of homes currently listed in Manhattan Beach is $2,599,000 and values have gone up 10.2%over the past year.

Among its many public parks, Polliwog Park is the largest and most frequented and has a small lake, open-air concert amphitheater for community events, playground equipment, picnic tables, and a fenced dog exercise area. Marine Avenue Park and Live Oak Park have several lighted ball fields, basketball courts, tennis courts, and an indoor racquetball facility.

Manhattan Beach is commonly featured in pop culture such as in The Beach Boys’ song “Surfin’ U.S.A.” and TV shows like Weeds, Hannah Montana and The O.C.

County Highlights

County OverviewThe most heavily populated county in the country is Los Angeles County withapproximately 9.9 million people, including about 1 million that live inunincorporated areas of the county. The metropolis - formed by the sixneighboring counties of Los Angeles, Ventura, Kern, San Bernardino,Riverside, and Orange - is home to approximately 19 million residents. LosAngeles County is home to one of the most educated labor pools in thecountry and offers a labor force of more than 4.7 million, of which more than1.5 million are college graduates. Los Angeles County has the largestpopulation of any county in the nation, exceeded only by eight states.According to the United States Conference of Mayors, Los Angeles Countyboasts a GDP among the twenty largest in the world. Los Angeles County’scontinued economic growth, in contrast to other areas of the state and nation,is due to its diversified economy and abundant, well-trained workforce.

Los Angeles County is well located on the Southern Coast of the California,and covers 4,061 square miles, including the San Clemente and SantaCatalina islands. The County is comprised of approximately 88 vibrant anddiverse cities hosting more than 244,000 business establishments— thegreatest concentration in the state. Los Angeles County has a Gross Domestic


Area Overview



Product (GDP) of approximately $446 billion - placing it among the top 20 economies in the world. The combined GDP of Los Angeles and its five surrounding neighboring counties places it in the top 10. California is generally considered to be in the top five.

If Los Angeles County were its own nation, its economy would be the 18th largest in the world. It is home to more than 244,000 businesses, with more minority and women owned businesses than any other in the nation and is the nation’s top international trade center and manufacturing center. Los Angeles is recognized worldwide as a leader in entertainment, health sciences, business services, aerospace and international trade. Because the Los Angeles area is so large and diverse, it has something to offer to everyone. While Hollywood and the Los Angeles beach culture are part of our collective image of Los Angeles, the city also has more museums than any other city and some of the best hotels in the world are located in Los Angeles.

Over the years, Los Angeles County has developed a diverse economic base, supported by a number of Fortune 500 companies with headquarters in the area, including Hilton Hotels, Walt Disney, Occidental Petroleum, DirecTV Group, Northrop Grumman, Computer Sciences, KB Home, Health Net, Mattel, and Avery Dennison. Key factors positively impacting the region’s economic position include increased local media production by the entertainment industry and a continuing expansion of import flows. Moreover, growth in aerospace, homeland security and in the private business sector have contributed positively to the County's economy. Los Angeles' well educated labor pool, many universities, wonderful climate, and world class infrastructure will enable Greater Los Angeles to continue to be a world leader in economic and cultural significance.


Area Overview



Aerial Map


Property Description



Property DetailsAddress 3214-3216 Manhattan Ave

Manhattan Beach, CA90226

Square Footage 4,191 SFLand Area 3,497 SFYear Built 1973Assessors Parcel Number 4175-021-009Zoning MNRHNumber of Buildings 1Number of Stories 3


Property Description



Additional Photos


Financials



FinancialOffering Summary

PriceBuilding SizeOwnershipLand AreaNumber of UnitsNumber of StoriesYear BuiltOccupancy

$5,600,000 4,191 SF

Fee Simple 3,497 SF

43

1973 100.00%

Price per Unit $1,400,000.00Price per Square Foot $1,336.20Current CAP Rate 2.81%Pro Forma Cap Rate 3.49%Current GRM 23.33Pro Forma GRM 20.03NOI $157,292Pro Forma NOI $195,704FinancingLoan Type New/ProposedLoan Amount $2,240,000Down Payment $3,360,000Interest Rate 4.75%Amortization Period 30 YearsAnnual Payment $140,219


Financials



Net Income Statement

Current AnnualIncome

Proforma AnnualIncome

REVENUESGross Potential Rent $240,000 $279,600Less: Vacancy Rate Reserve 7,200 8,388

Effective Gross Income $232,800 $271,212

OPERATING EXPENSESReal Estate Taxes 63,432 63,432Insurance 1,676 1,676Utilities 3,200 3,200Maintenance 7,200 7,200

TOTAL EXPENSES $75,508 $75,508

NET OPERATING INCOME $157,292 $195,704

Debt Service $140,219 $140,219NET CASH FLOW AFTER DEBT SERVICE $17,073 $55,485

Principal Reduction $34,565 $34,565TOTAL RETURN 1.54% 2.68%Expenses Per SF $18.02 $18.02% of EGI 32.43% 27.84%


Financials



Rent Roll

Unit Information Lease Rental Rates

Unit No Unit TypeApp. SquareFootage

Status Move In DateCurrentMonthly Rent

PSFPro FormaMonthly Rent

PSF Loss to Lease

1 3 BR 2 BTH - Occupied -- -- ---- $ 6,200.00 - $ 6,800.00 - $ 600.00

1 2 BR 2 BTH - Occupied -- -- ---- $ 5,000.00 - $ 5,500.00 - $ 500.00

1 2 BR 2 BTH - Occupied -- -- ---- $ 4,550.00 - $ 5,500.00 - $ 950.00

1 2 BR 2 BTH - Occupied -- -- ---- $ 4,250.00 - $ 5,500.00 - $ 1,250.00

4 Units TOTALS 0 Occ:4Vac:0 $20,000.00 $23,300.00 $3,300.00

Unit Mix

Unit Info Occupancy Square Footage Current Monthly Rent Pro Forma Monthly Rent

Numberof Units

Unit Type Occ Vac % OccAverageUnit SF

Total UnitSF

AVG Low High TotalAVGPSF

AVG TotalAVGPSF

VacancyLoss

1 3 BR 2 BTH 1 0 100% - - $ 6,200 $ 6,200 $ 6,200 $6,200 $6,800

3 2 BR 2 BTH 3 0 100% - - $ 4,600 $ 4,250 $ 5,000 $13,800

- $6,800

- $5,500 $16,500

4 TOTALS 4 0 100.00% 0 SF $20,000 $23,300

- $0

- $0

$0


Comparables



Sales Comparable Map


Comparables



Sales Comparables

Photos Address

Sale PriceSale DateTotal UnitsPrice Per Unit

Total SF$/SFCAPGRM

Unit MixYear BuiltLand AreaDays on Market

3214-3216 Manhattan AveManhattan Beach, CA90226

$5,600,000N/A41,400,000

4,191 SF$1,3362.81 %23.33

19733,497 SFN/A

-

1200 Manhattan BeachManhattan Beach, California90266

$4,900,00005/25/20183$1,633,333

2,800 SF$1,750--

19563,325 SF20

4116 Highland AveManhattan Beach, CA90266

$3,825,00009/29/20176$637,500

4,574 SF$8363.09 %20.30

19604,199 SF124

217 11th StManhattan Beach, CA90266

$3,850,00003/20/20184$962,500

2,866 SF$1,3431.62 %30.34

19702,701 SF

(1) 3BR + 2BTH(3) 2BR + 2BTH

(1) 1-bed/1-bath(1) 2-bed/2-bath(1) 3-bed/2-bath

(2) Studio(2) 2-bed/1-bath(2) 3-bed/2-bath

(2) 1-bed/1-bath(2) 2-bed/2-bath


Comparables



Photos Address


Total SF$/SFCAPGRM



$4,100,00011/17/20172$2,050,000

3,350 SF$1,2242.82 %23.73

19842,702 SF46

600 Highland AveManhattan Beach, CA90266

$4,525,00011/21/20172$2,262,500

4,494 SF$1,0073.20 %21.55

19873,334 SF44

2208 The StrandManhattan Beach, CA90266

$8,250,00007/06/20184$2,062,500

5,193 SF$1,5891.12 %38.05

19723,512 SF128


$9,750,00012/07/20173$3,250,000

2,547 SF$3,828--

19253,498 SF35

821 Manhattan AveHermosa Beach, CA90254

$4,753,12501/05/20187$679,018

3,865 SF$1,2303.89 %17.62

19532,995 SF63

(2) 2-bed/2-bath






Comparables



Photos Address


Total SF$/SFCAPGRM


1830 The StrandHermosa Beach, CA90254

$6,800,00008/28/20173$2,266,667

2,850 SF$2,386--

19272,410 SF34

Averages

$5,639,236-4$1,756,002

3,615 SF$1,6882.62 %25.27



Comparables



Rental Comparable Map


Comparables



Rental Comparables

Photos AddressDate Surveyed

Total UnitsYear BuiltBldg SFOccupancy

Units Types Avg Unit SF Avg Unit Rent Avg Rent Per SF


419734,191 SF100.00%

3 BR / 2 BTH2 BR / 2 BTH

--

$6,200$4,600

--

1140 Ocean DrManhattan Beach, California90266-

-1990--

2BR /2BTH 1,038 SF $5,400 $5.20

1500 Highland AvManhattan Beach, California90266-

-1965--

3BR /2BTH 1,600 SF $6,000 $3.75

221 12th PlManhattan Beach, CA9026606/01/2017

-1968--

3BR /2BTH 1,397 SF $5,200 $3.72


Comparables






441 Marine AveManhattan Beach, CA9026611/03/2017

-1990--

3BR /3BTH 1,814 SF $7,450 $4.11


-1988--

3BR /2BTH 1,802 SF $6,750 $3.75

433 23rd StManhattan Beach, CA9026606/01/2018

-1997--

3BR /3BTH 2,199 SF $7,000 $3.18


-1966--

2BR /2BTH 1,100 SF $5,750 $5.23

2504 HighlandManhattan Beach, CA9026607/03/2017

-1988--

2BR /2BTH 1,000 SF $5,900 $5.90

Notes #B


Comparables






2904 Alma AveManhattan Beach, CA9026609/03/2017

-2001--

3BR /1BTH 2,417 SF $7,100 $2.94

3020 Highland AveManhattan Beach, CA9026606/15/2018

-2000--

3BR /3BTH 1,997 SF $8,000 $4.01

118 Kelp StManhattan Beach, CA90266-

-1987--

2BR /2BTH - $6,500 -

Notes #B

118 Kelp StManhattan Beach, CA90266-

-1987--

2BR /2BTH - $5,000 -

Notes #A

Averages -- 1,636 SF $ 6,338 $ 4.18


Comparables



On Market Comparable Map


Comparables



On Market Comparables

Photos AddressSale PriceTotal UnitsPrice Per Unit

Total SF$/SFCAPGRM

Unit Mix Year BuiltLand Area


$5,600,0004$ 1,400,000

4,191 SF$1,3362.81 %23.33

19733,497 SF

-

225 Rosecrans AvManhattan beach, California90266

$3,600,0003$1,200,000

3,064 SF$1,1752.76 %23.26

19642,698 SF

129 38th StManhattan Beach, California90266

$3,980,0003$1,326,667

3,720 SF$1,0702.23 %26.53

19892,701 SF


$4,599,0002$2,299,500

3,278 SF$1,4031.83 %38.33

19582,705 SF

(1) 3-BR/2-BTH(3) 2-BR/2-BTH


(3) 2-bed/3-bath



Comparables



Photos AddressSale PriceTotal UnitsPrice Per Unit

Total SF$/SFCAPGRM

Unit Mix Year BuiltLand Area


$12,850,0002$6,425,000

2,807 SF$4,578--

19563,366 SF

3302 Manhattan AveHermosa Beach, CA90254

$5,650,0006$941,667

3,600 SF$1,5693.00 %22.26

19602,259 SF


$1,995,0002$997,500

1,464 SF$1,3633.18 %20.52

19871,348 SF


$4,500,0002$2,250,000

2,256 SF$1,9951.00 %-

19382,709 SF

Averages$5,310,5713$2,205,762

2,884 SF$1,8792.33 %26.18


(6) 1-bed/1-bath

(2) 2-bed/2-bath

(2) 2-bed/2-bath

CONFIDENTIALITY AND DISCLAIMER

The information contained in this Offering Memorandum (“Memorandum”) is proprietary and strictly confidential; it is intended to be reviewed only by the party receiving it from Broker and should notbe made available to anyone else without the written consent of Broker. By retention or use of this Memorandum, you agree that its contents are confidential, that you will hold it in the strictestconfidence, and that you will not disclose any of its contents contrary to these terms.

This Memorandum has been prepared to provide summary, unverified information to establish a preliminary level of interest in the subject property (“Property”). The information in this Memorandumhas been obtained from sources Broker believes to be reliable; however, Broker has not conducted sufficient investigation to make any warranty or representation whatsoever including but not limitedto the accuracy or completeness of the information, veracity or accuracy of the information, condition of the Property or its compliance or lack of compliance with applicable governmentalrequirements, developability, suitability or financial performance of the Property, income or expenses for the Property, the size and square footage of the Property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos, the compliance with State or Federal regulations, the physical condition of the improvements thereon, or the financial condition or businessprospects of any tenant or any tenant’s plans or intentions to continue occupancy of the Property. The Memorandum has selected information relating to the Property and does not purport to be an all- inclusive representation regarding the Property or to contain all or part of the information which prospective investors may require to evaluate the purchase of the Property. Additional information andan opportunity to investigate the Property will be made available to interested and qualified prospective purchasers. All information is based on assumptions relating to the general economy, marketconditions, competition and other factors beyond the control of Broker, therefore, all information is subject to material variation. The information contained herein is not a substitute for a thorough duediligence investigation. Interested parties are expected to review all information of whatever nature independently and not rely on the contents of this Memorandum in any manner.

The Property owner (“Owner”) expressly reserves the right, at its sole discretion, to reject any or all offers to purchase the Property, and/or to terminate discussions at any time with or without notice.The Owner shall have no legal commitment or obligation unless and until written agreement(s) have been fully executed, delivered and approved by the Owner and any conditions to the Owner’sobligations therein have been satisfied or waived.

Exclusively Marketed By:

Lyon Stahl Investment Real Estate

Woody Stahl

(310) 710-3829

[email protected]

Brett Lyon

(310) 780-1899

[email protected]

Documents

TROPHY 4-UNIT BUILDING FOR SALE · 2018. 9. 4. · Trophy 4-Unit Building For Sale Area Overview 3214-3216 Manhattan Ave Manhattan Beach, CA 90226 The information above has been obtained