WESTERN & LEIGHTON LOS ANGELES, CA 90062...WESTERN & LEIGHTON LOS ANGELES, CA 90062 RESTAURANT / COMMERCIAL KITCHEN POTENTIAL OPPORTUNITY ZONE / VALUE-ADD RETAIL CENTER OFFERING MEMORANDUM

WESTERN & LEIGHTONLOS ANGELES, CA 90062 RESTAURANT / COMMERCIAL KITCHEN POTENTIAL OPPORTUNITY ZONE / VALUE-ADD RETAIL CENTER

OFFERING MEMORANDUM | $1,510,000

2 3

© 2019 Hudson Commercial Partners, Inc. The information contained in this document has been obtained from sources believed reliable. While Hudson Commercial Partners, Inc. does not doubt its accuracy, Hudson Commercial Partners, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors, which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Hudson Commercial Partners, Inc. and the Hudson Commercial Partners, Inc. logo are service marks of Hudson Commercial Partners, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

TABLE OF CONTENTS

SECTION ONE 04EXECUTIVE OVERVIEW

SECTION TWO 12PROPERTY INFORMATION

This Memorandum (“Offering Memorandum”) has been prepared by Hudson Partners based on information that was furnished to us by sources we deem to be reliable. No warranty or representation is made to the accuracy thereof; subject to correction of errors, omissions, change of price, prior sale, or withdrawal from market without notice.

This Memorandum is being delivered to a limited number of parties who may be interested in and capable of purchasing the Property. By its acceptance hereof, each recipient agrees that it will not copy, reproduce or distribute to others this Memorandum in whole or in part, at any time, without the prior written consent of Hudson Partners, and it will keep permanently confidential all information contained herein not already public and will use this Confidential Memorandum only for the purpose of evaluating the possible acquisition of the Property.

This Memorandum does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information, which prospective buyers may need, or desire. All financial projections are based on assumptions relating to the general economy, competition and other factors beyond the control of the Owner and, therefore, are subject to material variation. This Memorandum does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of this Memorandum.

This Memorandum is being delivered by Hudson Partners to prospective purchasers with the understanding that all prospective purchasers will conduct their own independent investigation of those matters, which they deem appropriate in order to evaluate this offering. Additional information and an opportunity to inspect the site will be made available to interested and qualified prospective purchasers. Hudson Partners reserves the right to request the return of any or all of the information enclosed.

SECTION 1 | EXECU

TIVE OVERVIEW

HUDSON COMMERCIAL PARTNERS, INC. - 76 - HUDSON COMMERCIAL PARTNERS, INC.

site description Physical description

PROPERTY INFORMATION

DESCRIPTION SPECIFICATION

BUILDING SIZE 3,876 SF

PARCEL AREA 7,286 SF

APN 5035-009-026

NUMBER OF FLOORS 1 Floor

FLOOR-TO-AREA RATIO 0.48

ZONING [Q]C2-1VL

PARKING 10 Striped Spaces

PARKING RATIO 2.84 Space Per 1,000 SF

YEAR BUILT 1968

TENANCY Multi-Tenant

DESCRIPTION SPECIFICATION

CONSTRUCTION TYPE Type IV Construction

FOUNDATION Concrete Slab

FIRE PROTECTION Fire Extinguishers

HVAC Package Units

RESTROOMS 1 Per Suite

CROSS STREET Leighton Avenue

HIGHWAY ACCESS 10 & 110 Freeways

LOT DIMENSIONS 122’ x 60.83’ x 107’ x 60’

TRAFFIC COUNT ±25,547 Vehicles Per Day

STREET FRONTAGE 60 Feet on S Western Avanue

INVESTMENT SUMMARY

PROPERTY DETAILS

Hudson Partners is pleased to present 3959 S. Western Avenue, a shopping center strategically located within walking distance (6 blocks) from the Western/Expo metro station, with close proximity to USC and Exposition Park to the east and Leimert Park to the west. The 6-unit shopping center offers a plethora of SBA or expanded restaurant opportunities; for example, a commercial kitchen enterprise could combine one of the 2 existing restaurants on-site with a neighboring unit.

The corner property enjoys a stable tenant base for an investor seeking ease of management and rental upside in an area currently experiencing rapid transformation. The property’s proximity to the Expo light rail line that links Santa Monica Beach and the West Side with USC and Downtown Los Angeles, creates the potential for long-term value-add opportunities including attracting national credit tenants. Additionally, the asset benefits from its State Enterprise Zone reduced parking requirements of 2 spaces per 1,000 SF of floor area, thereby providing an opportunity for a medical or dental owner-user to obtain up to 90% SBA financing. The asset’s also situated in an Opportunity Zone, thereby providing additional tax benefits for investors. Opportunity zones are designated areas where new investments can be eligible for preferential tax treatment. Investors can defer or exclude taxes on any prior gains if held for five years or more. In addition, if the investor holds the investment for at least 10 years, investors can exclude 100 percent of new gains.

PROPERTY HIGHLIGHTS

• 90% Financing SBA Loans

• Potential Commercial Kitchen or Restaurant Expansion

• National Credit Tenant Opportunity

• State Enterprise Zone 2:1,000 SF Parking

• Medical Conversion Opportunity

• Expo Line Walking Distance

• Tremendous Value Added Opportunity

• Located in an Opportunity Zone


SUMMARY TERMS

PRICE $1,510,000

DOWN PAYMENT (20%) $302,000

BUILDING SIZE 3,876 SF

PRICE PER FOOT ON BUILDING $389.57

LOT SIZE 7,286 SF

PRICE PER FOOT ON LAND $207.24

YEAR BUILT 1968

ZONING [Q]C2-1VL

DESCRIPTION ESTIMATED PSF

OPERATING EXPENSES

TAXES (1.125%) $18,875 $4.87

INSURANCE $1,743 $0.45

UTILITIES $4,845 $1.25

REPAIRS & MAINTENANCE $3,876 $1.00

CAPITAL RESERVES/MISC $1,937 $0.50

TOTAL OPERATING EXPENSES $31,276 $8.07

DEBT SERVICE $82,644 $21.32

TOTAL OCCUPANCY COSTS $113,920 $30.09

MONTHLY OCCUPANCY COSTS(before tax advantages of ownership) $9,493 PSF $2.45 PSF

SUMMARY TERMS

LOAN AMOUNT $1,208,000

LOAN TYPE Conventional Owner-User

RATE 4.75%

AMORTIZATION 25 Years

DUE 20 Years

MONTHLY PAYMENT $6,887.02

20% DOWN PAYMENT ASSUMPTION ESTIMATED ANNUALIZED | USER OCCUPANCY COSTS

LOAN ASSUMPTIONS - CONVENTIAL FINANCING

USER OCCUPANCY COSTS ANALYSIS FINANCIAL ANALYSIS

ANNUALIZED OPERATING DATA

INCOME CURRENT PSF PRO-FORMA PSF

Base Rent Gross $103,969 $26.82 $137,210 $35.40

Reimbursements 0 0 $11,628 $3.00

Potential Gross $103,969 $26.82 $148,838 $38.40

Vacancy (5%) ($3,119) ($0.86) ($7,442) ($1.92)

Effective Gross $100,850 $26.02 $141,396 $36.48

Operating Expenses ($33,372) ($8.61 $35,412 ($9.14)

Net Operating Income $67,478 $105.984 $27.34

Cap Rate 4.46% 7.02%

EXPENSES CURRENT PSF PRO-FORMA PSF

Taxes (1.25%) $18,875 $4.86 $18,875 $4.86

Insurance $1,743 $0.85 $1,743 $0.85

Utilities $2,907 $0.75 $2,907 $0.75

Repairs & Maintenance $3,876 $1.00 $3,876 $1.00

Reserve / Misc. $1,937 $0.50 $1,937 $0.50

Management Fee (5%) $4,034 $1.04 $6,074 $1.56

TOTAL EXPENSES $33,372 $8.61 $35,412 $9.13

FINANCIAL OVERVIEW

DESCRIPTION SPECS

Price $1,510,000

Downpayment (100%) 1,510,000

Gross Square Feet 3,876 SF

Price Per Square Foot $389.57

Lot Size 7,286 SF

Price Per Foot on Land $207.24

Cap Rate 4.46%

Pro-Forma Cap Rate 7.02%

Occupancy 100%

Average PSF 2.24 MG

Pro Forma PSF $3.19 NNN

Lease Type ModifiedGross

Year Built 1968

Zoning [Q]C2-1VL

Type of Ownership Fee Simple

ProForma Assumption: $2.95 Triple Net Average, $0.25 Triple Net Reimbursements.


EXPO LINE

SUBJECT PROPERTY


RENT ROLL - CURRENT

RETAIL TENANT SQ. FT. RENT PSF LEASE EXPIRING OPTIONS TO RENEW

3957 BelizianRestaurant 486 SF $1,763.87 $3.63/Mo MTM None

3957BRob’s Glass

Shine1,002 SF $650.00 $0.65/Mo MTM None

3957CTattoo

(Zuniga)690 SF $1,225 $1.77/Mo MTM None

3959 3H Hair Inc 344 SF $787.00 $2.29/Mo MTM None

3959BWindell

Middleton481 SF $765.29 $1.59/Mo MTM None

3961Pizza H. Banuelos

& V. Negrete871 SF $3,500 $4.02/Mo MTM None

Monthly 3,874 SF

$8,664.16 $2.23

Annual $103,969.92 $26.83

RENT ROLL - PROFORMA

RETAIL TENANT SQ. FT. RENT PSF LEASE EXPIRING OPTIONS TO RENEW

3957 BelizianRestaurant 486 SF $2,000 $4.11/Mo 3-5 Years TBD

3957BRob’s Glass

Shine1,002 SF $1,753 $1.75/Mo 3-5 Years TBD

3957CTattoo

(Zuniga)690 SF $1,725 $2.50/Mo 3-5 Years TBD

3959 3H Hair Inc 344 SF $1,375 $3.99/Mo 3-5 Years TBD

3959BWindell

Middleton481 SF $1,500 $3.11/Mo 3-5 Years TBD

3961Pizza H. Banuelos

& V. Negrete871 SF $4,000 $4.59/Mo 3-5 Years TBD

Monthly 3,874 SF

$12,353 $3.19

Annual $148,236 $38.25

SECTION 2 | PRO

PERTY INFO

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PLAT MAP AERIAL

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SUBJECT PROPERTY3959 S WESTERN AVE., LOS ANGELES, CA 90062

7,286 SFLOT


S W

estern A

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S N

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S V

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SUBJECT PROPERTY

W Martin Luther King Jr Blvd

Exposition Blvd Exposition Blvd

S Fig

uero

a St

S W

estern A

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S N

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and

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S V

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SUBJECT PROPERTY

S Fig

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W Martin Luther King Jr Blvd W Martin Luther King Jr Blvd

Exposition Blvd Exposition Blvd

EXPO LINE

EXPO

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26 - HUDSON COMMERCIAL PARTNERS, INC.

JAY MARTINEZManaging Principal

11846 Ventura Blvd.Suite 140Studio City, CA 91604

Cal BRE: 01367663

CONTACT

C: 310.658.3357P: 818.212.3057F: 818.688.8140

E: [email protected]

DARIN SPILLMANPresident

11846 Ventura Blvd.Suite 140Studio City, CA 91604

Cal BRE: 01366902

CONTACT

C: 310.592.8269P: 818.699.1605F: 818.688.8140

E: [email protected]

Documents

WESTERN & LEIGHTON LOS ANGELES, CA 90062...WESTERN & LEIGHTON LOS ANGELES, CA 90062 RESTAURANT / COMMERCIAL KITCHEN POTENTIAL OPPORTUNITY ZONE / VALUE-ADD RETAIL CENTER OFFERING MEMORANDUM