7514-7522 pacific blvd., huntington park, ca 90255...7514 zumba 11% 1,500 sf $2,297 $1.53 $225 $0.15...

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7514-7522 PACIFIC BLVD.,HUNTINGTON PARK, CA 90255MIXED-USE CORNER FREESTANDING BUILDINGLEASED INVESTMENT - VALUE ADDED OPPORTUNITY

OFFERING MEMORANDUM | 2,350,000

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This Memorandum (“Offering Memorandum”) has been prepared by Hudson Partners, Inc. and BRC Advisors, Inc. 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, Inc. and BRC Advisors, Inc., 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 Inc. and BRC Advisors, Inc., 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, Inc. and BRC Advisors, Inc., reserves the right to request the return of any or all of the information enclosed.

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TABLE OF CONTENTS

SECTION ONE 04EXECUTIVE PROFILE

SECTION TWO 12PROPERTY INFORMATION

© 2014 Hudson Partners, Inc. & BRC Advisors. The information contained in this document has been obtained from sources believed reliable. While Hudson Partners, Inc. & BRC Advisors does not doubt its accuracy, Hudson Partners, Inc. & BRC Advisors 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 Partners, Inc. & BRC Advisors and the Hudson Partners, Inc. & BRC Advisors logos are service marks of Hudson Partners, Inc. & BRC Advisors 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.

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SECTION 1 | EXECU

TIVE OVERVIEW

6 - BRC ADVISORS & HUDSON PARTNERS, INC.

INVESTMENT OVERVIEW

Hudson Partners and BRC Advisors are pleased to present a mixed-use retail / office building with a Banquet Hall in 3,000 SF as the anchor tenant. Currently 30% of the tennats are on a month-to-month lease, allowing for immediate upside potential. The owner does not recapture any CAM reimbursments on the Banquet Hall or any ground floor retail tenants. An astute investor could implement industry standard triple net charges and / or fixed reimbursments, achieving above market returns.

The subject property is situated 3 blocks south of Florence Avenue, on the eastside of Pacific Boulevard at the corner of Flower Street. This building has excellent visibility and exposure, along with secured parking on-site.

PROPERTY HIGHLIGHTS• Secured Parking• Banquet Hall - Anchor Tenant• 8.5% Cap Rate - Pro-Forma• Corner Location• 30% Tenancy MTM• Motivated Seller

BRC ADVISORS & HUDSON PARTNERS, INC. - 7

PROPERTY INFORMATION

description descriptionDESCRIPTION SPECIFICATION

PRICE $2,350,000

ASSESSOR’S SF 12,439 SF

LEASABLE SF 13,245 SF

PRICE PER FOOT ON BUILDING $188.92

LOT SIZE 13,469 SF

PRICE PER FOOT ON LAND $174.48

APN 6201-018-017

NUMBER OF TENANTS 15 Tenants Retail/Office

FLOOR-TO-AREA RATIO 0.46

ZONING C2

PARKING 16 Spaces (1.29/1,000 SF)

YEAR BUILT 1957

LOT DIMENSIONS 64’ X 121’ X 78’

STREET FRONTAGE 121’ on Pacific Blvd.60’ on Flower Street

HIGHWAY ACCESS 110 and 105 Freeways

TRAFFIC COUNT +/- 20,639

DESCRIPTION SPECIFICATION

CONSTRUCTION TYPE Wood-Frame Stucco

ROOF Rolled Composition

HVAC 5 Ton Units

METERS Separately

ACCESS Flower St.

LEASE TYPE Modified Gross/Full Service Gross

TENANCY Multi-Tenant


RENT ROLL - CURRENT

Note: Square Footage Provided by Seller is bigger than shown by County Tax Assessor’s office (12,439 SF)

RETAILTENANT % OF BLDG SQUARE

FOOTAGEMONTHLY

RENT RENT PSF NNN NNN PSF START EXPIRATION OPTION ANNUAL

INCREASE

7514 Zumba 11% 1,500 SF $1,800 $1.20 N/A N/A MTM MTM None 5%

7516 Zumba 2% 250 SF $750 $3.00 N/A N/A MTM MTM -- --

7518 Clothing Store 10% 1,300 SF $1,850 $1.42 N/A N/A 08/26/2017 08/31/2020 1,3 yrs 5%

7522 Alfaros Market/Insurance 8% 1,100 SF $2,000 $1.82 N/A N/A 06/01/2017 06/30/2020 1,3yrs 5%

7526 Banquet Hall 22% 3,000 SF $3,324 $1.11 N/A N/A 01/01/2018 12/31/2021 None 5%

7626 1/2 Basement 10% 1,300 SF $1,000 $0.77 N/A N/A 08/18/2015 10/30/2019 3yrs 5%

201 Music Store 7% 900 SF $900 $1.00 N/A N/A 11/28/2015 MTM None 5%

201A Phone/Cable Store 5% 700 SF $950 $1.00 N/A N/A 12/05/2016 12/31/2019 1,3 yrs 5%

202 Vacant 3% 275 SF $650 $2.36 N/A N/A TBD TBD TBD TBD

203 Dress Manufacturing 2% 275 SF $575 $2.09 N/A N/A 06/20/2016 MTM None 5%

204 Sample Maker 6% 800 SF $1,050 $1.31 N/A N/A 09/01/2017 10/30/2018 1,3yrs --

205 Income Tax 2% 250 SF $550 $2.20 N/A N/A 03/10/2016 MTM None 5%

206 Dr Office 2% 250 SF $550 $2.20 N/A N/A 01/15/2016 MTM None 5%

207 Office 3% 395 SF $650 $1.65 N/A N/A 01/29/2016 MTM None 5%

208 Beauty 7% 950 SF $1,450 $1.53 N/A N/A 02/01/2017 03/31/2020 1,3yrs 5%

13,245 SF$18,049 AVG. PSF

$1.64$216,588


RETAILTENANT % OF BLDG SQUARE

FOOTAGEPRO-FORMA

RATES PSF NNN NNN PSF START EXPIRATION ANNUAL INCREASE

7514 Zumba 11% 1,500 SF $2,297 $1.53 $225 $0.15 TBD TBD 5%

7516 Zumba 2% 250 SF $957 $3.83 $50 $0.20 TBD TBD --

7518 Clothing Store 10% 1,300 SF $2,361 $1.81 $195 $0.15 TBD TBD 5%

7522 Alfaros Market/Insurance 8% 1,100 SF $2,552 $2.32 $165 $0.15 TBD TBD 5%

7626 Warehouse Party Rental 22% 3,000 SF $4,040 $1.35 $150 $0.05 TBD TBD 5%

7626 1/2 Basement 10% 1,300 SF $1,276 $0.98 ----- ----- TBD TBD 5%

201 Music Store 7% 900 SF $1,149 $1.27 $45.00 $0.05 TBD TBD 5%

201A Phone/Cable Store 5% 700 SF $1,212 $1.73 $35.00 $0.05 TBD TBD 5%

202 Tenant 3% 275 SF $829 $3.01 $13.00 $0.05 TBD TBD 5%

203 Dress Manufacturing 2% 275 SF $733 $2.66 $13.00 $0.05 TBD TBD 5%

204 Sample Maker 6% 800 SF $1,340 $1.67 $40 $0.05 TBD TBD 5%

205 Income Tax 2% 250 SF $702 $2.80 $50 $0.05 TBD TBD 5%

206 Dr.s Office 2% 250 SF $702 $2.80 $50 $0.05 TBD TBD 5%

207 Office 3% 395 SF $829 $2.10 $20 $0.05 TBD TBD 5%

208 Beauty 7% 950 SF $1,850 $1.95 $48 $0.05 TBD TBD 5%

13,245 SF$22,829 AVG. PSF

$2.12

Monthly NNN$1,099$273,948

RENT ROLL -5 YEAR PRO-FORMA

Assumption: A Standard annual increase of 5%, $0.15 NNN Monthly for ground floor and $0.5 PSF for office janitorial/CAM charges.


PRO-FORMA FINANCIAL ANALYSIS

ANNUALIZED OPERATING DATA

INCOME CURRENT PSF PRO-FORMA PSF

Gross Base Rent $216,588 $17.41 $273,948 $22.02

Reimbursement $0.00 $0.00 $13,188 $1.06

Potential Gross Income $216,588 $17.41 $287,136 $23.08

Vacancy (5%) ($10,829) (0.87) ($14,356) ($1.15)

Effective Gross $205,759 $16.54 $272,780 $21.93

Operating Expense ($68,792) ($5.53) ($70,874) ($5.70)

Net Operating Income $136,967 $11.01 $201,933 $16.23

FINANCIAL OVERVIEW

DESCRIPTION SPECS

Price $2,350,000

Rentable Square Feet 12,439 SF

Price Per Square Foot $188.92

Lot Size 13,469 SF

Price Per Foot on Land $174.48

Current Cap Rate 5.83%

Pro-Forma Cap Rate 8.59%

Occupancy 100%

Average PSF $1.63 PSF

Lease Type MG/FSG

Year Built 1957

Zoning C2

Type of Ownership Fee Simple

EXPENSES CURRENT PSF PRO-FORMA PSF

Taxes $29,375 $2.36 $29,375 $2.36

Insurance $5,960 $0.45 $5,960 $0.45

Utilities $14,927 $1.20 $14,927 $1.20

Repairs & Maintenance $9,329 $0.75 $9,329 $0.75

Management $6,101 $0.49 $8,183 $0.35

Miscellaneous $3,100 $0.25 $3,100 $0.25

TOTAL EXPENSES $68,792 $5.53 PSF $70,874 $5.70 PSF

5 Year Assumptions: (Pro-Forma) Ground Floor teants will pay $0.15 Triple Net Charges, 2nd floor office tenants will pay industry standard $0.05 psf for CAM charges, and

all tenants pay a 5% annual increase.

SECTION 2 | PRO

PERTY INFO

RMATIO

N


AERIAL OVERVIEW

PACIFIC BLVD.

FLOWER STREET

LIVE OAK STREET


PLAT MAP


STREET LEVEL FLOOR PLAN


SECOND LEVEL FLOOR PLAN


JAY MARTINEZManaging Principal

18801 Ventura Blvd., Suite 310Tarzana, CA 91356

Cal BRE: 01367663

CONTACTCELL PHONE818.212.3057

PHONE818.201.3605

FAX818.688.8140

[email protected]

WEBSITEwww.hudson-partners.com

ELIZABETH CLARKSenior Vice President

9301 Wilshire Blvd., Suite 206Beverly Hills, CA 90210

Cal BRE: 01811246

CONTACTCELL PHONE310.740.7283

PHONE310.525.3702

FAX320.421.4184

[email protected]

WEBSITEwww.brcadvisors.com

7514-7522 pacific blvd., huntington park, ca 90255...7514 zumba 11% 1,500 sf $2,297 $1.53 $225 $0.15...

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