50 unit apartment building...investment overview the opportunity matthews real estate investment...

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

5 0 U N I T A PA R T M E N T B U I L D I N G N O RT H I N G L E WO O D, C A

3 INVESTMENT OVERVIEW 6 AREA

OVERVIEW 10 FINANCIALOVERVIEW

T A B L E O F C O N T E N T S

I N V E S T M E N TO V E R V I E W

E X C L U S I V E L Y L I S T E D B Y :

DAVID HARRINGTONEVP & Managing Director

direct +1 (310) 295-1170mobile +1 (310) 497-5590

[email protected] No. 01320460 (CA)

NABIL AWADAAssociate

direct +1 (310) 844-9362mobile +1 (310) 469-2974



I N V E S T M E N TO V E R V I E W

THE OPPORTUNITYMatthews Real Estate Investment Services™ is proud to offer this 50-unit apartment community for sale in the desirable Northwest part of Inglewood, adjacent to Westchester and Ladera Heights. This value-add opportunity consists of a desirable unit mix of (2) two-bed/two-bath townhouse-style, (8) two-bed/two-bath, (32) one-bed/one-bath, (8) studios. The property offers a wide range of amenities, including a gated lobby, swimming pool, two coined laundry rooms with owned equipment, one large storage facility and two other small storage rooms, and gated parking with newer motors for a total of (72) parking spaces. All units except for the studios have their own private balcony. Roof is ten years old, roof over carport is newer. Almost all water heaters, garbage disposals, stoves/cooktops, wall ovens, and hood fans have been replaced. Building is all electric and tenants pay for their own electricity. There is a gas heater for the laundry equipment only. Both sump pumps located at the entrance and exit gates are newer. Property is outfitted with intercom system and surveillance cameras that are currently disconnected.

As the area continues to experience growth, a buyer can capitalize on the tight rental market and rents in this neighborhood by implementing a strategic unit interior renovation plan, which will upgrade the units and allow the buyer to command top of the market rents. Rents at the high end of the range result in 23% upside.

Located a short drive away from the site of the SoFi Stadium and Entertainment District. The future home of the Los Angeles Rams and Los Angeles Chargers. The stadium is expected to generate more than 3,000 direct and indirect employment opportunities with most of these opportunities targeted to residents. Anchored by the three million square feet stadium, the 298-acre urban village will include two million square feet of commercial space, 2,500 modern residences, a 6,000-seat performing arts venue, and 25 acres of public parks.

Next door to the SoFi Stadium, the Los Angeles Clippers have received final approval from Inglewood’s city government to break ground on the estimated $1.2 billion project in the summer of 2021 for their NBA franchise. This privately financed 18,000-seat arena with a practice facility and corporate offices is estimated to create 1,500 full-time jobs and $100 million in tax revenue over its first 15 years in business.

LOCATIONInglewood, CA

NUMBER OF UNITS50

RENTABLE SF±37,581 SF

YEAR BUILT1962

LOT SIZE±1.15 AC

SALE NOTES

• Showings by Appointment Only - Property to be sold As-Is

• Please No Walking The Property – Please Do Not Contact or Discuss Sale With Tenants or Property Employees

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PROPERTY HIGHLIGHTS• 50 Units | Built in 1962

• Gross Building Area: 37,581 SF | Lot Size: 1.15 Acres (49,993 SF)

• Unit Mix Consists of (2) Two-Bed/Two-Bath Townhouse-Style, (8) Two-Bed/Two-

Bath, (32) One-Bed/One-Bath, and (8) Studios

• (11) Units to be delivered Vacant – (8) One-Bed/One-Bath & (3) Studios

• Gated Entrance with Gated Parking in the rear with (72) Parking Spaces

• Swimming Pool, Two Onsite Laundry Rooms, Three Storage areas

• Building is individually metered for electricity. Gas is for laundry equipment only

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INGLEWOOD ENHANCEMENTS Inglewood is making a strong impression amongst the commercial real estate industry with billion-dollar commercial and residential developments nearing completion and/ or receiving approval to begin construction throughout the city. Once known as the place to be for retailers, the city seems to have every intention of reclaiming that status. These mixed-use projects have positively impacted the economic growth of Inglewood through raising the local housing and commercial market values. As the city culture continues to grow into a major tourist destination for both sports and entertainment, Inglewood is committed to ensuring a positive impact on the current residents. City leaders are working closely with project developers to ensure the economic growth is mutually beneficial for the planned developments, as well as, current and future Inglewood residents. The city has made agreements with project developers requiring local hire, obtaining affordable housing restrictions within new community developments, as well as securing project supplies and services through local businesses in Inglewood.

Inglewood, CaliforniaSouthwest of downtown Los Angeles, Inglewood is a city in the South Bay region of Los Angeles County that is a gateway to major commercial centers of the United States and internationally. Inglewood is in a unique position on the shore of the Pacific Rim with direct access to the Los Angeles International Airport through its Century Boulevard, which is one of the city’s busiest commercial corridors. Proximity to the airport, the Los Angeles and Inglewood Harbors and four major freeways facilitate both domestic and international trade in the city. Recent years have shown Inglewood taking initiatives towards once again becoming a regional hub for sports and entertainment through renovations of existing structures and new developments.

A R E AO V E R V I E W

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U P C O M I N G D E V E L O P M E N T S

FAIRVIEW HEIGHTS APARTMENTS

NFL SOFI STADIUM & ENTERTAINMENT DISTRICT AT HOLLYWOOD PARK IN INGLEWOOD The $5 billion, NFL SoFi Stadium & Entertainment District is set to make its home just miles from the subject property in 2020. Ground broke in November of 2016 for the football stadium. The stadium will be the main piece of a 298-acre sports and entertainment district. As of now, the stadium is scheduled to host Super Bowl LVI in February of 2022, the College Football Playoff National Championship in January 2023, and the 2028 Summer Olympics opening ceremonies.

A performing arts venue will also be built across the street from the stadium holding up to 6,000 seats. To join will also be 1.5 SF of retail and office space and a 300-room hotel. An additional apartment complex will be built to hold 2,500 residential units and 25 acres of park space.

• Project Timeline: 2020 Start

• Finance: Sale prices starting at $800K

• Location: 2-Neighborhoods in Inglewood community (Parallel & Icon)

• Development Features:

• Housing: 105 Townhomes

• Common Features/ Community Amentities

• Clubhouse

• Swimming pool and spa

• Bocce ball court, playgrounds

TOWNHOUSE PROJECT

• Project Completion: Spring 2022

• Location: Intersection of La Brea and Regent Street

• Development Features:

• 6-story complex

• 242 Residential units

• 50,000 SF of Retail space

• Parking for 438 cars

• Notes: Redefine the culture of downtown Inglewood through mixed-used space, creating a modern urbanized community.

INGLEWOOD MARKET GETAWAY

• Project Completion: Fall 2021

• Location: Near Crenshaw/ LAX Line in Inglewood

• Development Features: mixed-use affordable housing complex

• Two 4-story story buildings

• 5,000 SF Retail Space

• 101 residential units, including 50 supportive housing units for formerly homeless persons

• Notes: Key component and plays an integral part of the community in revitalizing the future of Inglewood

6515 CRENSHAW

• Project Completion: Fall 2021

• Location: Near Crenshaw/ LAX Line in Inglewood

• Development Features: mixed-use affordable housing complex

• Two 4-story story buildings • 5,000 SF Retail Space• 101 residential units, including 50 supportive

housing units for formerly homeless persons• Notes: Key component and plays an integral part of the

community in revitalizing the future of Inglewood

FAIRVIEW HEIGHTS APARTMENTS

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Los Angeles officially the City of Los Angeles and often known by its initials L.A., is the most populous city in California; the second most populous city in the United States, after New York City; and the third most populous city in North America, after Mexico City and New York City. With an estimated population of nearly four million people, Los Angeles is the cultural, financial, and commercial center of Southern California. The city is known for its Mediterranean climate, ethnic diversity, the entertainment industry, and its sprawling metropolis.

The City of Los Angeles holds many distinctions. L.A. is the entertainment capital of the world, a cultural mecca boasting more than 100 museums, many of them world-class, and a paradise of idyllic weather. From tourist attractions like the Walk of Fame’s collection of stars (numbering more than 2,614 and growing by one or two a month) to career opportunities like those presented in the expanding tech industry, Los Angeles is the place to be.

LOS ANGELES50 MILLION 50 Million People who traveled to Los Angeles last year

$22 BILLION LA visitors spent $22 billion on hotels, restaurants, shopping, attractions and more

525,000 There are 525,000 jobs supported by the Los Angeles tourism industry

8 YEARS LA has celebrated 8 consecutive years of record growth

LOS ANGELES ECONOMY The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism.

L.A. County is an entertainment, manufacturing and international trade behemoth, with a fast-growing high-tech and digital media industry cluster largely centered in West L.A. and, increasingly, in the Hollywood area and beyond. With $807 billion in annual output, Los Angeles County ranks among the world’s largest economies. Its GDP, which would rank No. 19 in the world if it were a standalone nation, is larger than Switzerland and Saudi Arabia, and right behind Netherlands and Turkey, underscoring the magnitude of the region’s economy.

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POPULATION 2020

ESTIMATE2025

PROJECTION

39,669 40,419 (1.89% )

250,522 255,126 (1.84% )

842,667 860,943 (2.17% )

HOUSEHOLDS 2020

ESTIMATE2025

PROJECTION

16,231 16,590 (2.21% )

89,962 91,805 (2.05% )

301,020 307,710 (2.22% )

INCOME 2020

AVG. HOUSEHOLD INCOME

$87,076

$96,809

$93,246

1-MILE

3-MILE

5-MILE

DEMOGRAPHICS

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UNIT MIX & SCHEDULED INCOME

Total Units Unit Mix Unit Mix %Current

Avg Rent

Current Monthly

Rent

Market Rent

MarketMonthly

Rent

3 V - Studio 6% $1,450 $4,350 $1,450 $4,350

8 V - 1+1 16% $1,650 $13,200 $1,650 $13,200

5 Studio 10% $1,069 $5,345 $1,450 $7,250

24 1+1 48% $1,349 $32,371 $1,650 $39,600

8 2+2 16% $1,625 $12,999 $2,450 $19,600

2 2+2 TH 4% $2,109 $4,217 $2,600 $5,200

Scheduled Monthly Rent: $72,481 $89,200

Scheduled Yearly Rent: $869,772 $1,070,400

PRICE:$13,390,000

INVESTMENT SUMMARY

Offering Price Price/Unit Price/Foot

CURRENT PRO FORMA MARKET

Cap Rate GRM Cap Rate GRM Cap Rate GRM

$13,390,000 $267,800 $356.30 4.09% 15.18 4.09% 15.18 5.49% 12.37

F I N A N C I A LO V E R V I E W

INVESTMENT SUMMARY

Number of Units: 50

Year Built: 1962

APN: *On File With Broker

Gross Sq. Ft.: ±37,581 SF

Average S.F. Per Unit: 752

Lot Size (SF): ±1.15 AC

Zoning: INR3YY

V = Vacant UnitTH = Townhouse Style

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ANNUAL OPERATING SUMMARY

PRO FORMA ANNUAL OPERATING EXPENSES

Current Pro Forma Market

Scheduled Gross Income: $869,772 $869,772 Current Rent $1,070,400 23%Upside

Less Vacancy Reserve: $26,093 3.0% $26,093 3.0% $32,112 3.0%Laundry Income: $6,000 $6,000 $6,000Extra Parking Income: $6,240 $6,240 $6,240Gross Operating Income: $855,919 $855,919 $1,050,528Expenses: $307,845 35.39% $307,845 35.39% $315,629 29.49%*Net Operating Income: $548,074 $548,074 $734,899Loan Payments: $438,467 $438,467 $438,467Pre-Tax Cash Flow: $109,607 1.96% $109,607 1.96% $296,432 5.30%**Plus Principal Reduction: $140,866 $140,866 $140,866Total Return Before Taxes: $250,473 4.48% $250,473 4.48% $437,298 7.81%*** As a percent of Scheduled Gross Income** As a percent of Down Payment

Pro Forma Estimates % of SGI Current Per Unit * Pro Forma Per Unit Market Per Unit % of SGI

Property Taxes 1.250% x Sale Price 19.56% $167,375 $3,348 $167,375 $3,348 $167,375 $3,348 15.6%

Off-Site Management 4.0% x GOI 4.00% $34,237 $685 $34,237 $685 $42,021 $840 3.9%

Insurance $0.35 x GSF 1.54% $13,153 $263 $13,153 $263 $13,153 $263 1.2%

Payroll $2,000 x 12 months 2.80% $24,000 $480 $24,000 $480 $24,000 $480 2.2%

Repairs & Maintenance $500 x Units 2.92% $25,000 $500 $25,000 $500 $25,000 $500 2.3%

Landscaping $65 x Units 0.38% $3,250 $65 $3,250 $65 $3,250 $65 0.3%

Pest Control - Actual 2019 0.14% $1,200 $24 $1,200 $24 $1,200 $24 0.1%

Electricity - Actual 2019 0.33% $2,800 $56 $2,800 $56 $2,800 $56 0.3%

Gas - Actual 2019 0.06% $480 $10 $480 $10 $480 $10 0.0%

Water/Sewer/Trash - Actual 2019 3.22% $27,600 $552 $27,600 $552 $27,600 $552 2.6%

Pool $100 x Units 0.58% $5,000 $100 $5,000 $100 $5,000 $100 0.5%

General Administration $75 x Units 0.44% $3,750 $75 $3,750 $75 $3,750 $75 0.4%

Total Expenses 35.97% $307,845 $6,157 $307,845 $6,157 $315,629 $6,313 29.5%

Current Per Unit % of SGI

Non-controllable expenses: Taxes, Ins., Reserves: $180,528 $3,611 20.8%

Total Expense without Taxes $140,470 $2,809 16.15%

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RENT ROLL

# Unit Rent Extra Parking Market Rent

1 1+1 $1,459.50 $1,650

2 2+2 $1,585.50 $2,450

3 2+2 $1,585.50 $2,450

4 1+1 $1,375.50 $1,650

5 1+1 $1,333.50 $1,650

6 1+1 $1,344.00 $1,650

7 1+1 $1,291.50 $45 $1,650

8 1+1 $1,291.50 $1,650

9 Studio $1,071.00 $1,450

10 V - Studio $1,450.00 $1,450

11 1+1 $1,490.00 $50 $1,650

12 2+2 TH $2,600.00 $25 $2,600

14 2+2 TH $1,617.00 $2,600

15 1+1 $1,449.00 $1,650

16 Studio $1,050.00 $1,450

17 Studio $1,071.00 $1,450

18 V - 1+1 $1,650.00 $1,650

19 V - 1+1 $1,650.00 $1,650

20 1+1 $1,365.00 $1,650

21 1+1 $1,291.50 $1,650

22 V - 1+1 $1,650.00 $1,650

23 2+2 $1,638.00 $2,450

24 2+2 $1,764.00 $2,450

25 1+1 $1,291.50 $50 $1,650

26 V - 1+1 $1,650.00 $1,650

27 1+1 $1,449.00 $1,650

28 V - 1+1 $1,650.00 $1,650


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# Unit Rent Extra Parking Market Rent

29 2+2 $1,585.50 $2,450

30 2+2 $1,648.50 $2,450

31 1+1 $1,291.50 $1,650

32 1+1 $1,291.50 $1,650

33 1+1 $1,354.50 $50 $1,650

34 1+1 $1,291.50 $45 $1,650

35 V - 1+1 $1,650.00 $1,650

36 V - Studio $1,450.00 $1,450

37 V - Studio $1,450.00 $1,450

38 V - 1+1 $1,650.00 $1,650

39 1+1 $1,449.00 $1,650

40 Studio $1,092.00 $1,450

41 Studio $1,060.50 $1,450

42 1+1 $1,386.00 $1,650

43 1+1 $1,333.50 $50 $1,650

44 1+1 $1,291.50 $1,650

45 1+1 $1,291.50 $50 $1,650

46 1+1 $1,291.50 $50 $1,650

47 2+2 $1,606.50 $2,450

48 2+2 $1,585.50 $45 $2,450

49 1+1 $1,375.50 $1,650

50 1+1 $1,291.50 $1,650

51 V - 1+1 $1,650.00 $1,650

Totals $72,481 $460 $89,200

Averages $1,450 $46 $1,784

RENT ROLL


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STUDIO UNIT RENT COMPARABLES

Address Number of Units Year Built Floor Plan Asking Rent Avg Square Feet Rent PSF

Subject Property 50 1962 Studio $1,069 - -

708 Venice Way, Inglewood, CA 90302

19 1958 Studio $1,495 450 $3.32

919 S Prairie Ave, Inglewood, CA 90301

50 1959 Studio $1,495 505 $2.96

9910 S Village Dr, Inglewood, CA 90305

24 1958 Studio $1,375 264 $5.21

3107 W Arbor Vitae Street, Inglewood, CA 90305

384 1952 Studio $1,500 550 $2.73

AVERAGES $1,466 442 $3.55

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ONE BEDROOM RENT COMPARABLES


Subject Property 50 1962 1+1 $1,349 - -

708 Venice Way, Inglewood, CA 90302

19 1958 1+1 $1,650 641 $2.57

818 N Eucalyptus Ave, Inglewood, CA 90302

14 1960 1+1 $1,550 600 $2.58

815 Cory Dr, Inglewood, CA 90302

6 1957 1+1 $1,650 600 $2.75

724 Cory Dr, Inglewood, CA 90302

5 1953 1+1 $1,600 600 $2.67

AVERAGES $1,613 610 $2.64

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TWO BEDROOM RENT COMPARABLES


Subject Property 50 19622+2 TH

2+2$2,109$1,625

- -

805 Glenway Dr, Inglewood, CA 90302

51 1964 2+2 $2,600 922 $2.82

875 Victor Ave, Inglewood, CA 90302

50 1972 2+2 $2,630 1,200 $2.19

720 N Market Street, Inglewood, CA 90302

16 1964 2+2 $2,550 1,000 $2.55

135 W 64th Pl, Inglewood, CA 90302

9 1967 2+2 $2,500 1,000 $2.50

AVERAGES $2,570 1,031 $2.52

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CONFIDENTIALITY AGREEMENT AND DISCLAIMERThis Offering Memorandum contains select information pertaining to the business and affairs of 50 Units located in North Inglewood, CA(“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner

detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

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

E X C L U S I V E L Y L I S T E D B Y :

DAVID HARRINGTONEVP & Managing Director

direct +1 (310) 295-1170mobile +1 (310) 497-5590


NABIL AWADAAssociate

direct +1 (310) 844-9362mobile +1 (310) 469-2974



50 unit apartment building...investment overview the opportunity matthews real estate investment...

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