14361 garfield ave, paramount ca 90723 · paramount, ca 90723 building sf 24,204 year built 1974...

14361 Garfield Ave, Paramount CA 90723

O F F E R I N G M E M O R A N D U M

CONTENTS

Exclusively Marketed by:

Reyes MejiaBroker & Sr. Vice PresidentLic: 01868073(323) [email protected]

Lenin GarciaSenior Vice PresidentLic: 01989599(562) [email protected]

Frank SoboleskeExecutive DirectorLic: 01974925(562) [email protected]

Jafet PolancoCommercial AssociateLic: 01989599(562) [email protected]

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions,change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of theproperty. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

01 Executive Summary Investment Summary 3 Location Summary 5

02 Property Description Property Features 6 Aerial Map 7

03 Rent Comps Rent Comparables 8 Rent Comparables Summary 10 Rent Comparables Map 11

04 Sale Comps Sale Comparables 12 Sale Comparables Summary 18 Sale Comparables Charts 20 Sale Comparables Map 21

05 Rent Roll Rent Roll 22 Lease Expiration 23

06 Financial Analysis Income & Expense Analysis 24

07 Demographics Demographics 25 Demographic Charts 27

Investment Summary | 03

OFFERING SUMMARYADDRESS 14361 Garfield Ave

Paramount CA 90723

COUNTY Los Angeles

BUILDING SF 22,326 SF

LAND SF 40,752 SF

YEAR BUILT 1978

YEAR RENOVATED 1986

OWNERSHIP TYPE Fee Simple

FINANCIAL SUMMARYOFFERING PRICE $4,200,000

PRICE PSF $188.12

OCCUPANCY 100 %

NOI (CURRENT) $141,300

CAP RATE (CURRENT) 3.36 %

CAP RATE (MARKET) 5.51 %

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2019 Population 34,295 346,733 870,467

2019 Median HH Income $51,266 $55,474 $56,402

2019 Average HH Income $62,921 $70,432 $73,403

Loading dock dimensions: (2) 12'x10', (2) 12'x12', (1)14'x14', (1) 10'x10'

Secured parking and yard space

Office restrooms: Men-5, Women-5

1 mile to Long Beach Freeway & 1 1/2 mile to ArtesiaFreeway

Heavy Power Industrial Warehouse

800a/230-480v 3p 4w Heavy

Docks: 8 Ext

Fire Sprinkler System

Zoned: M2

Excellent owner-investor opportunity for HeavyPower Industrial User

The investment offers the opportunity to capitalize on positivemarket conditions to acquire an asset located within the SouthBay. The South Bay submarket in Los Angeles County is one ofthe strongest industrial submarkets in the United States. Thesubmarket has high barriers to entry, given the lack of availableindustrial assets and, or developable industrial land.

Investment Summary | 04

Realty Group Advisors is pleased to offer to qualified investors orowner-users an opportunity to purchase a multi-tenant industrialinvestment in the city of Paramount, currently leased by multipletenants on Month-To-Month terms, which would enable anOwner-User to occupy the asset. The property consists of +/-22,326 square feet of building improvements on +/-37,026 squarefeet (0.85 acres) of land.

The subject is a clear span multi-tenant warehouse and has nopillars or posts while featuring fantastic fluorescent lighting fromthe many skylights within the warehouse. The subject offers 7,300square feet of office space, there is a fully functioning kitchen and5 private restrooms for Men and Women. The subject includeseasy access roll-up doors, gate and secure yard. (1981 build; Renov1986).

Location Summary | 05

Location Summary• With over 930 million SF of inventory, L.A. is one of the

largest industrial markets in the nation. Yet availableindustrial space is scarce here, particularly in newer andlarger buildings suitable for modern-day logisticsoperations. Relatively few buildings have delivered thiscycle, and many of those were build-to-suit and pre-leased.The effects of supply constraints on this market cannot beoveremphasized: with few developable sites, vacancies inL.A. remain the lowest of any major U.S. industrial hub.Netabsorption was negative in 2019, marking the first time inyears that industrial vacancies expanded in L.A. Demand forindustrial product in L.A. rarely wanes, thanks to thepresence of both the nation's largest manufacturing sectorand busiest ports of entry. Vacancies remain extremelytight, around 2.8%. However, port traffic is slowing in theface of trade tensions between the United States andChina, which may help explain recent soft absorptionfigures. The development pipeline here tends to be verylimited. A paucity of developable land and an onerouspermitting process combine to keep a lid on newconstruction even during periods of peak demand growth.On average, less than 1 million SF of new inventory hasbeen built annually since 2013. Total industrial squarefootage decreased slightly in 2019, as demolitions andconversions of older stock outpaced the rate of newconstruction. The bulk of Southern California's industrialconstruction is taking place in the neighboring InlandEmpire.Rock-bottom vacancies drove explosive rentgrowth for much of this cycle. From 2014 to 2018, industrialrents in L.A. grew at an average of more than 8% annually,often outpacing gains in the National Industrial Index by150 to 200 basis points. While vacancies remain low, growthdecelerated sharply in recent quarters. Rents still grew by2.9% over the past year, and annual gains are now roughlyin line with the pace of growth nationally. Investors, drawnby the extremely tight fundamentals, continue to acceptlow returns in exchange for stability and liquidity. Anotherannual sales volume record was established in 2019, withmore than $5.5 billion in trades.

Regional Map

Locator Map

Property Features | 06

PROPERTY FEATURESNUMBER OF UNITS 6

BUILDING SF 22,326

LAND SF 40,752

LAND ACRES .85

YEAR BUILT 1978

YEAR RENOVATED 1986

# OF PARCELS 1

ZONING TYPE M1

BUILDING CLASS B-Industrial

CONSTRUCTION Masonary

POWER 800a/230-480v 3p 4w Heavy

NUMBER OF STORIES 1

NUMBER OF BUILDINGS 3

NUMBER OF PARKING SPACES 40

PARKING RATIO 1.80/1,000 SF

CEILING HEIGHT 15'

DOCK HIGH DOORS 8 ext

CROSS DOCK None

SKYLIGHTS Fluorescent Lighting

YARD Fenced Yard

OFFICE SF 7,300

MECHANICALFIRE SPRINKLERS Yes

Aerial Map | 07

Rent Comparables | 08

1

5612 Borwick Ave.South Gate, CA 90280

BUILDING SF 18,498

YEAR BUILT 1975

RENT PSF (YEARLY) $11.52

RENT PSF (MONTHLY) $0.96

DISTANCE 1.8 miles

ANNUAL RENT PSF $8 - $12

LOW HIGH

BUILDING SF 10,000 - 22,326

LOW HIGH

2

7029 Marcelle St.Paramount, CA 90723

BUILDING SF 10,000

YEAR BUILT 1968



DISTANCE 1.5 miles


LOW HIGH

BUILDING SF 10,000 - 22,326

LOW HIGH

Rent Comparables | 09

3

8831-8833 Cedar St.Bellflower, CA 90706

BUILDING SF 18,290

YEAR BUILT 1969



DISTANCE 3.8 miles


LOW HIGH

BUILDING SF 10,000 - 22,326

LOW HIGH

S

14361 Garfield AveParamount, CA 90723

BUILDING SF 22,326

YEAR BUILT 1978

OCCUPANCY 100.00 %




LOW HIGH

OCCUPANCY 0 % - 100 %

LOW HIGH

BUILDING SF 10,000 - 22,326

LOW HIGH

Rent Comparables Summary | 10

PROPERTY BLDG SF PSF (YR) PSF (MO) Occupancy Built Lease Type DISTANCE (mi)

1 5612 Borwick Ave.South Gate, CA 90280 18,498 $11.52 $0.96 0% 1975 1.80

2 7029 Marcelle St.Paramount, CA 90723 10,000 $11.04 $0.92 0% 1968 1.50

3 8831-8833 Cedar St.Bellflower, CA 90706 18,290 $9.84 $0.82 0% 1969 3.80

AVERAGES 15,596 $10.80 $0.90 0% 1971

SUBJECT 22,326 $8.44 $0.70 100% 1978

Rent Comparables Map | 11

# Address CityS 14361 Garfield Ave Paramount1 5612 Borwick Ave. South Gate2 7029 Marcelle St. Paramount3 8831-8833 Cedar St. Bellflower

Sale Comparables | 12

1

9722-9742 Washburn Rd.Downey, CA 90241

BUILDING SF 21,072

YEAR BUILT 1976

SALE PRICE $2,477,093

PRICE/SF $117.55

CLOSING DATE 6/26/2019

DISTANCE 4.6 miles

Price/Square Ft $114 - $213

LOW HIGH

2

9700-9720 Washburn Rd.Downey, CA 90241

BUILDING SF 21,072

YEAR BUILT 1976


PRICE/SF $156.17


DISTANCE 4.6 miles


LOW HIGH


3

19520 S Rancho WayRancho Dominguez, CA 90220

BUILDING SF 17,563

YEAR BUILT 1986


PRICE/SF $211.05


DAYS ON MARKET 272

DISTANCE 7.1 miles


LOW HIGH

DOM Range 108 - 930

LOW HIGH

4

15523 Illinois AveParamount,, CA 90723

BUILDING SF 9,600

YEAR BUILT 1961


PRICE/SF $150.00


DAYS ON MARKET 120

DISTANCE 0.9 miles


LOW HIGH

DOM Range 108 - 930

LOW HIGH


5


BUILDING SF 8,105

YEAR BUILT 2005


PRICE/SF $175.20


DISTANCE 0.1 miles


LOW HIGH

6

8737 Alondra BlvdParamount, CA 90723

BUILDING SF 17,145

YEAR BUILT 1978


PRICE/SF $134.15

LEASE TYPE N/A


DAYS ON MARKET 930

DISTANCE 2.2 miles


LOW HIGH

DOM Range 108 - 930

LOW HIGH


7

11120 Scott AveSouth Gate, CA 90280

BUILDING SF 21,755

YEAR BUILT 1967


PRICE/SF $135.14


DAYS ON MARKET 188

DISTANCE 2.0 miles


LOW HIGH

DOM Range 108 - 930

LOW HIGH

8

9824 S. Atlantic AveParamount, CA 90723

BUILDING SF 37,570

YEAR BUILT 1965


PRICE/SF $114.45


DISTANCE 3.6 miles


LOW HIGH


9

17899 S. Susana Rd.Paramount, CA 90723

BUILDING SF 24,204

YEAR BUILT 1974


PRICE/SF $212.94


DAYS ON MARKET 193

DISTANCE 4.4 miles


LOW HIGH

DOM Range 108 - 930

LOW HIGH

10

6825-6829 Walthall WayParamount, CA 90723

BUILDING SF 41,556

YEAR BUILT 1984


PRICE/SF $162.91


DAYS ON MARKET 108

DISTANCE 0.9 miles


LOW HIGH

DOM Range 108 - 930

LOW HIGH


S


BUILDING SF 22,326

YEAR BUILT 1978

ASKING PRICE $4,200,000

PRICE/SF $188.12

CAP RATE 3.36 %

OCCUPANCY 100.00 %

Cap Rate Range 3.36 % - 3.36 %

LOW HIGH


LOW HIGH

Sale Comparables Summary | 18

PROPERTY BLDG SF SALE PRICE PSF Built Close Date DISTANCE (mi)

1 9722-9742 Washburn Rd.Downey, CA 90241 21,072 $2,477,093 $117.55 1976 6/26/2019 4.60

2 9700-9720 Washburn Rd.Downey, CA 90241 21,072 $3,290,907 $156.17 1976 6/26/2019 4.60

319520 S Rancho WayRancho Dominguez, CA90220

17,563 $3,706,607 $211.05 1986 6/26/2019 7.10

4 15523 Illinois AveParamount,, CA 90723 9,600 $1,440,000 $150.00 1961 11/19/2019 0.90

5 14333 Garfield AveParamount, CA 90723 8,105 $1,420,000 $175.20 2005 8/20/2019 0.10

6 8737 Alondra BlvdParamount, CA 90723 17,145 $2,300,000 $134.15 1978 9/17/2018 2.20

7 11120 Scott AveSouth Gate, CA 90280 21,755 $2,940,000 $135.14 1967 6/26/2019 2.00

8 9824 S. Atlantic AveParamount, CA 90723 37,570 $4,300,000 $114.45 1965 7/19/2019 3.60

Sale Comparables Summary | 19

PROPERTY BLDG SF SALE PRICE PSF Built Close Date DISTANCE (mi)

9 17899 S. Susana Rd.Paramount, CA 90723 24,204 $5,154,000 $212.94 1974 7/30/2019 4.40

10 6825-6829 Walthall WayParamount, CA 90723 41,556 $6,770,000 $162.91 1984 10/25/2019 0.90

AVERAGES 21,964 $3,379,861 $156.96 1977

SUBJECT 22,326 $4,200,000 $188.12 1978

Sale Comparables Charts | 20

Sale Comparables Map | 21

# Address CityS 14361 Garfield Ave Paramount1 9722-9742 Washburn Rd. Downey2 9700-9720 Washburn Rd. Downey3 19520 S Rancho Way Rancho Dominguez4 15523 Illinois Ave Paramount,5 14333 Garfield Ave Paramount6 8737 Alondra Blvd Paramount7 11120 Scott Ave South Gate8 9824 S. Atlantic Ave Paramount9 17899 S. Susana Rd. Paramount10 6825-6829 Walthall Way Paramount

Rent Roll | 22

Lease Term Rental RatesSuite Tenant Name Square

Feet% of NRA Lease Start Lease End Begin Date Monthly PSF Annual PSF Lease Type Options/Notes

Don Chente bar and grill 01/01/00 CURRENT $3,000 $36,000Jorge Ramirez 01/01/00 CURRENT $2,500 $30,000Ramon Barrera 01/01/00 CURRENT $2,400 $28,800Agave Organics FoodsInc.

01/01/00 CURRENT $1,800 $21,600

1-6 22,326 100.00% 01/01/19 CURRENT $15,700 $0.70 $188,400 $8.44

Totals 22,326 $25,400 $304,800

Lease Expiration | 23

Income & Expense Analysis | 24

INCOME CURRENT MARKET

Effective Gross Income $188,400 $278,628

Less: Expenses $47,100 $47,100

Net Operating Income $141,300 $231,528

EXPENSES CURRENT MARKET

Real Estate Taxes $21,968 $21,968

Insurance $12,566 $12,566

Common Area Maintenance (CAM) $12,566 $12,566

Total Operating Expense $47,100 $47,100

Expense / SF $2.10 $2.10

% of EGI 25.00 % 16.90 %

REVENUE ALLOCATION

DISTRIBUTION OF EXPENSES

Demographics | 25

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 34,050 329,140 826,937

2010 Population 33,349 335,950 844,217

2019 Population 34,295 346,733 870,467

2024 Population 34,681 350,873 880,718

2019 African American 3,428 41,558 102,229

2019 American Indian 228 2,690 6,836

2019 Asian 749 18,463 54,577

2019 Hispanic 28,628 256,304 617,050

2019 Other Race 13,674 127,644 297,746

2019 White 14,517 138,817 365,603

2019 Multiracial 1,448 14,722 37,727

2019-2024: Population: Growth Rate 1.10 % 1.20 % 1.15 %

2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 828 8,523 23,325

$15,000-$24,999 739 8,153 21,107

$25,000-$34,999 988 8,537 21,675

$35,000-$49,999 1,390 13,409 33,404

$50,000-$74,999 1,729 18,325 44,767

$75,000-$99,999 1,093 12,679 32,291

$100,000-$149,999 1,046 12,196 33,114

$150,000-$199,999 213 4,049 11,881

$200,000 or greater 134 2,426 8,102

Median HH Income $51,266 $55,474 $56,402

Average HH Income $62,921 $70,432 $73,403

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 8,317 89,397 231,852

2010 Total Households 7,994 86,567 225,377



2019 Average Household Size 4.19 3.90 3.76

2000 Owner Occupied Housing 3,385 42,024 109,964

2000 Renter Occupied Housing 4,573 43,666 112,814



2019 Vacant Housing 384 4,605 11,493

2019 Total Housing 8,544 92,901 241,158



2024 Vacant Housing 386 4,723 11,874

2024 Total Housing 8,602 93,614 243,032

2019-2024: Households: Growth Rate 0.70 % 0.65 % 0.65 %

Source: esri

Demographics | 26

2019 POPULATION BY AGE 1 MILE 3 MILE 5 MILE

2019 Population Age 30-34 2,646 27,816 68,440

2019 Population Age 35-39 2,389 24,108 59,980

2019 Population Age 40-44 2,055 20,817 52,386

2019 Population Age 45-49 2,104 20,850 52,772

2019 Population Age 50-54 1,834 19,021 48,938

2019 Population Age 55-59 1,574 17,496 45,586

2019 Population Age 60-64 1,302 14,970 39,465

2019 Population Age 65-69 956 11,495 30,747

2019 Population Age 70-74 680 8,175 22,046

2019 Population Age 75-79 408 5,216 14,242

2019 Population Age 80-84 225 3,069 8,669

2019 Population Age 85+ 186 2,907 8,961

2019 Population Age 18+ 23,936 247,927 629,567

2019 Median Age 29 31 31

2019 INCOME BY AGE 1 MILE 3 MILE 5 MILE

Median Household Income 25-34 $53,020 $56,085 $56,143

Average Household Income 25-34 $64,223 $70,038 $70,480









Average Household Income 75+ $38,841 $42,954 $46,774

2024 POPULATION BY AGE 1 MILE 3 MILE 5 MILE

2024 Population Age 30-34 2,936 29,895 73,902

2024 Population Age 35-39 2,535 26,537 65,698

2024 Population Age 40-44 2,252 23,307 58,361

2024 Population Age 45-49 1,990 20,002 50,730

2024 Population Age 50-54 1,920 19,541 50,143

2024 Population Age 55-59 1,673 17,928 45,908

2024 Population Age 60-64 1,403 15,900 41,530

2024 Population Age 65-69 1,114 13,033 34,704

2024 Population Age 70-74 818 9,714 26,178

2024 Population Age 75-79 544 6,593 18,062

2024 Population Age 80-84 304 4,020 10,889

2024 Population Age 85+ 210 3,213 9,362

2024 Population Age 18+ 24,649 254,926 646,654

2024 Median Age 31 32 33

2024 INCOME BY AGE 1 MILE 3 MILE 5 MILE











Average Household Income 75+ $45,992 $51,407 $56,327

Demographic Charts | 27

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Household Income

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Population by Race

Demographic Charts | 28

2019 Household Occupancy - 1 Mile Radius

Average Income Median Income

2019 Household Income Average and Median

CONFIDENTIALITY and DISCLAIMERThe information contained in the following offering memorandum isproprietary and strictly confidential. It is intended to be reviewed only bythe party receiving it from RGA - Realty Group Advisors and it should notbe made available to any other person or entity without the writtenconsent of RGA - Realty Group Advisors .

By taking possession of and reviewing the information contained hereinthe recipient agrees to hold and treat all such information in the strictestconfidence. The recipient further agrees that recipient will not photocopyor duplicate any part of the offering memorandum. If you have no interestin the subject property, please promptly return this offeringmemorandum to RGA - Realty Group Advisors . This offeringmemorandum has been prepared to provide summary, unverifiedfinancial and physical information to prospective purchasers, and toestablish only a preliminary level of interest in the subject property.

The information contained herein is not a substitute for a thorough duediligence investigation. RGA - Realty Group Advisors has not made anyinvestigation, and makes no warranty or representation with respect tothe income or expenses for the subject property, the future projectedfinancial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminatingsubstances, PCBs or asbestos, the compliance with local, state and federalregulations, the physical condition of the improvements thereon, orfinancial condition or business prospects of any tenant, or any tenant’splans or intentions to continue its occupancy of the subject property.

The information contained in this offering memorandum has beenobtained from sources we believe reliable; however, RGA - Realty GroupAdvisors has not verified, and will not verify, any of the informationcontained herein, nor has RGA - Realty Group Advisors conducted anyinvestigation regarding these matters and makes no warranty orrepresentation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriatemeasures to verify all of the information set forth herein. Prospectivebuyers shall be responsible for their costs and expenses of investigatingthe subject property.

Exclusively Marketed by:

Reyes MejiaBroker & Sr. Vice PresidentLic: 01868073(323) [email protected]

Lenin GarciaSenior Vice PresidentLic: 01989599(562) [email protected]

Frank SoboleskeExecutive DirectorLic: 01974925(562) [email protected]

Jafet PolancoCommercial AssociateLic: 01989599(562) [email protected]

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14361 garfield ave, paramount ca 90723 · paramount, ca 90723 building sf 24,204 year built 1974...

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