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2915 W. 12TH ST

Los Angeles, CA 90006JAMES CAPITAL ADVISORS

MARKETING PACKAGE

TABLE OF

Contents

CONTENTS

MEET YOUR ADVISORS

SECTION

Property Overview

Financial Analysis

Location Overview

01

02

03

2915 W. 12TH ST, LOS ANGELES, CA 90006

tom jonssonDirector(424) 325-2621

will jamesDirector(424) 325-2610

tyler chungAssociate(424) 325-2632

SECTION ONE

PROPERTY OVERVIEW2915 W. 12TH ST

Los Angeles, CA 90006

PROPERTY OVERVIEW

DETAILSPROPERTY OVERVIEW

HIGHLIGHTS


Street Address

City

State

Zip Code

APN

Rentable Square Feet

Lot Size

Year Built

2915 W. 12th St

Los Angeles

CA

90006

5080-026-014

4,720 SF

4,516 SF

1890

Number of Units

Occupancy

Number of Buildings

Number of Stories

Water

Electric

Gas

Construction

5

80%

2

2

Master-Metered

Individually Metered

Individually Metered

Wood-Frame Siding

Roof

On-Site Parking

Zoning

Unit Mix

*Detached home.

Pitched

2 Spaces

LAR3

(4) 1 Bed / 1 Bath(1) 2 Bed / 1 Bath*

Unique Unit-MixThe subject property comprises a total of 4,720 rentable square feet and a unit mix consisting of four 1 bed / 1 bath and one detached home composed of a 2 bed / 1 bath.

On-Site ParkingThere is on-site parking available for 2 cars located between both buildings through 12th St at the entry way on S. Harvard Blvd.

Upside in RentsThere is over 66% of rental upside in a strong rental market making it a prime investment opportunity near downtown Los Angeles and Koreatown.

Detached Home Delivered VacantThe 2 Bed / 1 Bath detached home will be delivered vacant giving the subject property great upside potential.

SECTION TWO

FINANCIAL ANALYSIS2915 W. 12TH ST


This information has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless James Capital Advisors, Inc. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

FINANCIAL ANALYSIS

PRICING ANALYSIS

Price

Price per Unit

Price per Square Foot

CAP Rate

GRM

Gross Income

Expenses

NOI

FINANCIAL ANALYSIS

FINANCING


$1,400,000$1,400,000

$280,000

$296.61

CURRENT

2.84%

17.61

$75,525

$35,775

$39,750

PRO FORMA

5.30%

11.73

$113,430

$39,186

$74,244

Down Payment

Loan Amount

Interest Rate

Amortization / Fixed-Period

Term

Debt Service

Pre-Tax Cash Flow

Principle Reduction

Total Return

CURRENT

-$31,280

$8,470

-$9,615

$18,085

PRO FORMA

-$31,280

$42,963

-$9,615

$52,579

$854,000 (61%)

$546,000

4.00%

30-Years / 5-Years

360 Months

(0.99%)

(2.12%)

(5.03%)

(6.16%)

FINANCIAL ANALYSIS

INCOME AND EXPENSEFINANCIAL ANALYSIS

RENT SCHEDULE


ANNUAL

INCOME

Base Rental Income

Gross Potential Income

Vacancy Allowance

Effective Gross Income

Operating Expenses

Net Operating Income

CURRENT

$79,500

$79,500

$3,975

$75,525

$35,775

$39,750

PRO FO RMA

$119,400

$119,400

$5,970

$113,430

$39,186

$74,244

ANNUAL

EXPENSE

Taxes (1.17%)

Insurance ($0.65/sq. ft.)

Utilities ($85/unit/month)

Repairs & Maintenance (5% of EGI)

Management Fee (4% of EGI)

Gardener ($75/month)

Pest Control ($50/month)

Reserves ($200/Unit)

Direct Assessments

Miscellaneous ($200/unit)

Operating Expenses

CURRENT

$16,380

$3,068

$5,100

$3,776

$3,021

$900

$600

$1,000

$930

$1,000

$35,775

PRO FORMA

$16,380

$3,068

$5,100

$5,672

$4,537

$900

$600

$1,000

$930

$1,000

$39,186

UNIT #

1

2

3

4

5*

TOTAL

*Vacant.**Detached home.

UNIT TYPE

1 Bed / 1 Bath

1 Bed / 1 Bath

1 Bed / 1 Bath

1 Bed / 1 Bath

2 Bed / 1 Bath**

RENT

$1,445

$880

$505

$1,045

$2,750

$6,625

PRO FORMA

RENT

$1,800

$1,800

$1,800

$1,800

$2,750

$9,950

SECTION THREE

LOCATION OVERVIEW2915 W. 12TH ST


LOCATION OVERVIEW

KOREATOWNLOCATION OVERVIEW

DEVELOPMENTS


Access to Shops & RestaurantsThe subject property has a walk score of 93 and is located two blocks from Wilshire and Olympic Blvd. Neighborhood attractions include: The Galleria Mall, Koreatown Plaza, Numerous popular Korean BBQ restaurants, grocery stores, and multiple corner shopping center servicing everyday needs.

Nearby TransitThe subject property is located within two blocks of three major thoroughfares; Western Blvd, Olympic Blvd, and Pico Blvd. The nearest Metro Stop is located at Wilshire and Western. Access to the 10 fwy is minutes away.

Development BoomThe primary factor driving developers to build in Koreatown is its close proximity to Downtown Los Angeles and its central location near transit. With nearly 1,900 residential units now under construction according to CoStar Market Analytics, sizeable proposals continue to work their way through the entitlement process. Despite covering only about six square miles, densely populated Koreatown has one of the largest apartment inventories in the metro, with about 55,500 units constituting more than 6% of Los Angeles inventory.

Rental GrowthKoreatown continues to flourish and has been attracting more population to the city. Koreatown has seen a tremendous growth in rental rates over the few years. Vacancy rates are historically low and the demand for this location is high creating a 55% loss-to-lease. The neighborhood still has a lot of older buildings that can be torn down and rebuilt, which explains why less than 10% of existing inventory is in the 4 and 5 Star segment despite the recent delivery of several high-end projects.

91-Unit Apartment BuildingA new residential project could soon be constructed on a long-vacant lot just south of Olympic Boulevard. Located on Serrano Ave, the project site is on the border of Koreatown and Harvard Heights, about a block from the Koreatown Galleria. Plans filed with the city Friday show the project would include 91 apartments. The structure would include 12 affordable units set aside for very low-income tenants. Other features would include balconies, a rear yard, a 2,362-square-foot gym, 112 parking stalls, and 100 bike rack spaces.

Seven-Story Residential DevelopmentThe brand new proposed condominium development, slated for the northeast corner of 11th Street and Oxford Avenue, would replace a single-family home, a duplex, and a fourplex with a seven-story building featuring 49 dwelling units and a 105-car garage.

Mixed-Use ComplexThe residential-retail complex, now rising from a 1.5-acre site at 3060 W. Olympic Boulevard, will consist of a a seven-story building feature 226 one- and two-bedroom apartments. Plans also call for a swimming pool, a fitness center, two rooftop decks and over 16,000 square feet of ground-level commercial space.


PROPERTY OVERVIEW

HOTSPOTSPROPERTY OVERVIEW

HOTSPOTS

The Line HotelA second home for neighbors and travelers seeking a rich, layered experience unlike any other in Los Angeles. Tucked between Hollywood and downtown, the LINE LA is your haven for creative expression and exploration.

Parks BBQGo to Park’s BBQ for the best Korean barbecue in the heart of K-Town, a bold, but true, claim for the constantly changing neighborhood with more smoke-filled barbecue spots per square mile than some major cities.

OpenaireCreated in collaboration with two-star Michelin Chef and native Angeleno, Josiah Citrin, Openaire is a poolside oasis of green at the center of the Koreatown. The menu features the best of California’s ingredients from land and sea.

Koreatown PlazaKoreatown Plaza comes closest to a centralized, bourgeois shopping district, albeit trapped inside of a distinctively ‘80s mall. The selection skews towards global kids and adult brands. The overall experience is an American mall with Korean flair.

Walker’s Paradise2915 W. 12th St has a Walk Score of 92 out of 100. This location is a Walker’s Paradise so daily errands do not require a car. This location is in the Olympic Park neighborhood in Los Angeles. Nearby parks include Ardmore Recreation Center, Normandie Playground and Gramercy Park.

Wiltern TheatreThe Wiltern evokes a period of elegance and style simply not found anywhere in today’s modern venues. The entrance is set back among colorful terrazzo paving, and its art deco design contains decorative tile work along with colorful murals.

MaDang CourtyardMa Dang the Couryard, that curiously-designed Koreatown mini-mall on Western Avenue right across for Solair is a three-level shopping and entertainment complex.

Kang Ho-dong BaekjeongKang HoDong Baekjeong is one of Koreatown’s most popular BBQ restaurants. While the meat and banchan are both very good, a meal here is a true test of patience as wait times fall in the two-hour range almost every day of the week.

Chapman PlazaChapman market and its companion Chapman Park Studio building across Alexandria Avenue were envisioned, along with the since-demolished Chapman Park Hotel, as fashionable anchors of the neighborhood.

Koreatown GalleriaThe Koreatown Galleria’s bright, airy interior offers an alternative to the sometimes grimy streetscape near Western and Olympic. The mall features apareal, gifts, specialty foods and a supermarket.

Quarters Korean BBQQuarters might be next door to a serious heavyweight in Kang Ho Dong Baekjeong, but it’s proven to be a serious contender in its own right. Excellent quality meats, a modern-looking space and, full bar.

WALKER’S PARADISE

93

LOCATION OVERVIEW

AERIALLOCATION OVERVIEW

AERIAL


LOCATION OVERVIEW

DEMOGRAPHICS


Population

2024 Projection

2019 Estimate

2010 Census

Growth ‘19 - ‘24

Growth ‘10 - ‘19

Households

2024 Projection

2019 Estimate

2010 Census

Growth ‘19 - ‘24

Growth ‘10 - ‘19

Average Income

Median Income

3-Mile

661,154

647,692

596,261

2.08%

8.63%

3-Mile

236,704

231,538

211,350

2.23%

9.55%

$61,389

$38,688

1-Mile

91,315

90,390

88,316

1.02%

2.35%

1-Mile

31,033

30,806

30,585

0.74%

0.72%

$48,869

$35,001

5-Mile

1,367,625

1,342,354

1,249,509

1.88%

7.43%

5-Mile

507,509

497,822

462,072

1.95%

7.74%

$69,653

$43,996

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guar-antees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or com-parable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

JAMES CAPITAL ADVISORS, INC.

DISCLAIMERFOR INQUIRIES

PLEASE CONTACT

TYLER CHUNGAssociate

(424) [email protected] RE Lic. 02085199

will jamesDirector


tom jonssonDirector


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