creative office portfolio 3 buildings / 1 parcel€¦ · cross street la brea ave/santa monica blvd...

OFFER INGMEMORANDUM

CREATIVE OFFICE PORTFOLIOCREATIVE OFFICE PORTFOLIO3 BUILDINGS / 1 PARCEL3 BUILDINGS / 1 PARCEL

7065 LEXINGTON AVEWEST HOLLYWOOD, CA 90038

INVESTMENT SUMMARY

CONSTRUCTION TYPE Type V

ROOF Roll Composition

FOUNDATION Raised Foundation/Slab

CEILING HEIGHT TBD

PARKING 5 Secured Spaces

CROSS STREET La Brea Ave/Santa Monica Blvd

FINANCING 80% to 90% Leverage

FRONTAGE 50' on Lexington Ave

INVESTMENT SUMMARY

LISTING PRICE $3,555,000

BUILDING SIZE 4,132 SF

BUILDING PSF $860.36

OCCUPANCY 100% Vacant

PARCEL AREA 5,143 SF

APN 5531-012-021

PROPERTY TYPE Commercial/Office/Residential

YEAR BUILT 1933 | 2019

FAR 0.80

ZONING WDC2A

LOT DIMENSIONS 50' x 102.5'

NO. OF BUILDINGS 3 Free Standing Buildings

EXECUTIVE OVERVIEW

Compass Commercial and Hudson Commercial Partners are pleased to present for sale a leading-edge office space located at 7065 Lexington Avenue in the City of West Hollywood. The property is made up of approxi-mately 4,132 square foot , which contains three separate structures. This property is perfect for an Owner-User looking to elevate their modern image with a newly reno-vated office compound, while lowering their occupancy costs and leveraging the tax advantages of ownership. This property is located just steps off bustling La Brea Ave and Santa Monica Blvd and approximately 1 mile to the Hollywood 101 Freway. The space was newly renovated in 2019 and has high ceilings, hardwood floors, and wide glass entry doors. This property consists of three centrally facing office buildings around a private courtyard, which makes this property not only perfect for working, but also for entertaining guests or clients indoors and outdoors.

HIGHLIGHTS

• Owner-User/Investment Opportunity • Ideal Headquarter Location• Property Delivered Vacant• Security System/Secured Parking• Up to 90% Financing/Conventional & SBA• Complete Renovated/High End Finishes• Campus Type Layout/3 Buildings• Drive On Gated Secure Property

HUDSON COMMERCIAL PARTNERS, INC.7065 LEXINGTON AVE | WEST HOLLYWOOD, CA 900382 3

PROPERTY OVERVIEW

LOCATION

7065 Lexington AveWest Hollywood, CA 90038

SITE

Located on the North side of Lexing-ton Ave between La Brea Ave and Sycamore Ave in the city of West Hollywood, CA.

LAND AREA

The property consists of 1 parcel (APN #5531-012-021) totaling 5,143 SF of land area.

BUILDING AREA

The subject consists of 3 buildings equal-ing to 4,132 total square feet.

FRONTAGE & ACCESS

The site features 50 linear feet of frontage along Lexington Ave.

Access points into the building include 1entrance off Lexington Ave.

BUILT

Built in 1933 and completely renovated in 2019 to modern build-out.

ZONING

Per the city of West Hollywood, the site is currently zoned as WDC2A.

PARKING

Provides 5 spaces, which equates to 1.14 spaces per 1,000 SF parking ratio.

TRAFFIC COUNTS

La Brea Ave...........................±40,060 CPD

PARCEL MAP

SYC

AM

OR

E A

VE

SYC

AM

OR

E A

VE

LA B

REA

AV

ELA

BR

EA A

VE

LEXINGTON AVELEXINGTON AVE


USER OCCUPANCY COSTS

25% FINANCING LEVERAGE

DESCRIPTION ESTIMATED PSF

OPERATING EXPENSES

Taxes (1.25%) $43,750$43,750 $10.59$10.59

Insurance $1,950$1,950 $0.47$0.47

Maintainance & Repair $1,500$1,500 $0.36$0.36

Reserves/Misc. $1,200$1,200 $0.29$0.29

Total Operating Expenses $48,400 $11.71

Debt Service $145,151$145,151 $35.13$35.13

Total Occupancy Costs $193,551$193,551 $46.84$46.84

Monthly Occupancy Costs(before tax advantages of ownership) $3.90 PSF$3.90 PSF

SUMMARY TERMS

Price $3,555,000

Down Payment (25%) $888,750

Gross SF 4,132 SF

Gross PSF $860.36

Lot Size 5,143 SF

ESTIMATED ANNUALIZED | USER OCCUPANCY COSTS

75% LTV LOAN ASSUMPTIONS:

SUMMARY TERMS

Loan Amount $2,666,250

Loan Type Conventional

Interest Rate 2.6% Fixed Rate

Amortized 25 Years

Monthly Payment $12,095.96 Note: Buyer can lease out unused SF and lower occupancy cost with supplemental income stream

LEASE SCENARIO PER/SF AMOUNT

LEASE ASSUMPTIONS:

Rent Per Month $14,462

Rent Per SF NNN $3.50

START-UP COSTS:

Prepaid rent and security deposit (2 mo.'s total) $28,924

Lessee TI costs, net of lessor TI Allowance** $0.00

Total startup costs $28,924

GROSS MONTHLY COSTS:

Rent payment $3.50 $14,462

Lease operating costs** $0.50 $2,066

Gross monthly cash cost $4.00 $16,528

LEASE BENEFITS (PER MONTH):

Depreciation tax benefit at 35% tax rate $0.00 $0.00

Avg. monthly principal paydown | equity build $0.00 $0.00

Tax benefit on rent deduction at 35% tax rate $1.23 $5,062

Tax benefit on operating costs at 35% tax rate $0.18 $723

Lease-out income (net of tax at 35% rate) $0.00 $0.00

$1.40 $5,785

NET COST AFTER LEASE BENEFITS: $2.60 $10,743

Est. appreciation benefit, per month $0.00 $0.00

NET COST AFTER LEAST BENEFITS $2.60 $10,743

PROJECTED RENT COST IN YEAR 10

Net rent cost (after tax benefits at 35% rate) $3.39 $14,017

Assumed annual rent escalation 3.0%

4,132 SFLEASE VS. OWN

Disclaimer: This sample analysis is based on a series of assumptions, including loan interest rates and annual appreciation rates, and is meant only to be illustrative in nature. The analysis is not a guarantee of any actual results of any loan or purchase transaction or ownership of any real property, all of which are subject to risks, uncertainties and assumptions that are difficult to predict and beyond our control. No warranties or representations, express or implied, are made as to the accuracy of the information contained herein, and same is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, withdrawal without notice, prior sale, lease or financing. We include projections, opinions, assumptions or estimates for example only, and they may not represent future performance of the property. You and your financial and legal advisors should conduct your own evaluation of the property and transaction economics.

ANALYSIS LIMITATIONS:THIS ANALYSIS DOES NOT INCLUDE SUPPLEMENTAL INCOME STREAM FROM

POTENTIAL TENANTS - LOWERING OCCUPANCY COSTS SIGNIFICANTLY

OWN SCENARIO PER/SF AMOUNT

PURCHASE ASSUMPTIONS:

Purchase Price $860 $3,555,000

Improvement - Additional $0 $0.00

Total $860 $3,555,000

START-UP COSTS:

Borrower cash down payment (25%) $888,750

Estimated fees on 1st mortgage** $26,663

Est. appraisal, environmental, other fees** $5,000

Total startup costs $920,413

GROSS MONTHLY COSTS:

Mortgage payment $2.93 $12,096

Ownership operating costs** $0.98 $4,033

Gross monthly cash cost $3.90 $16,129

OWNERSHIP BENEFITS - EXCEL. APPRECIATION (PER MONTH):

Depreciation tax benefit at 35% tax rate $0.55 $2,260

Avg. monthly principal paydown | equity build $1.66 $6,839

Tax benefit on rent deduction at 35% tax rate $0.45 $1,860

Tax benefit on operating costs at 35% tax rate $0.34 $1,411

Lease-out income (net of tax at 35% rate) $0.00 $0

Interest on startup cost difference (net of 35% tax) -$0.35 -$1,449

$2.64 $10,922

NET COST AFTER OWNERSHIP BENEFITS EXCEL APPRE: $1.26 $5,206

Est. appreciation benefit, per month $1.43 $5,925

NET COST AFTER OWNERSHIP BENEFITS INCL. APPRE: -$0.17 -$719

4,132 SF

GROWTH IN PROPERTY VALUE & OWNER EQUITYAssumed Annual Appreciate Rate Of: 2.0% Borrower Down Payment (25%): $888,750

PROPERTY VALUE LOAN BALANCE OWNER EQUITY

Year 5 $3,925,007 $2,270,584 $1,654,423

Year 10 $4,333,525 $1,807,527 $2,525,998

Year 15 $4,784,562 $1,280,258 $3,504,304

Year 20 $5,282,543 $679,874 $4,602,669


SNAPSHOT: WEST HOLLYWOODWest Hollywood is a suburb of Los Angeles with a population of 36,384. West Hollywood is in Los Angeles County and is one of the best places to live in California. Living in West Hollywood offers residents a dense urban feel and most residents rent their homes. In West Hollywood there are a lot of bars, restaurants, coffee shops, and parks. Many young professionals live in West Hollywood and residents tend to be liberal. The public schools in West Hollywood are above average.

LOS ANGELES COUNTY

The County of Los Angeles holds many disticntions. L.A. is the entertainment capital of the world, a cultural mecca boasting more than 100 museums, 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 opportuni-ties like those presented in the expanding tech industry, Los Angeles County is the place to be. It is the only city in North America to have hosted the Summer Olympics twice. Downtown L.A. is the largest government center outside of Washington, D.C. Los Angeles County has the only remaining wooden lighthouse in the state (located in San Pedro's Fermin Park) and the largest historical theater district on the National Register of Historic Places (located Downtown on Broadway).

DEMOGRAPHICS

WEATHER 283SunnyDays

93◦Average

High

52◦Average

Low

284SunnyDays

71◦Average

High

55◦Average

Low

WEST HOLLYWOOD LOS ANGELES COUNTY

WEST HOLLYWOOD UNITED STATES

MEDIAN HOUSEHOLD INCOME

$ 66,458

HIGH DENSITY, WEST HOLLYWOOD DEMOGRAPHICS

• More than 36,148 people within a 1-mile radius

• More than 25,890 employees with an Average

Household Income exceeding $66,458

• More than 22,600 households with an Average

Property Value exceeding $684,200

NEIGHBORHOOD

West Hollywood

CITY

LosAngeles

REGION

LosAngeles

COUNTY

LosAngeles

METRO

LosAngeles


ABOUT THE NEIGHBORHOODWest Hollywood, commonly referred to as WeHo, is a city in Los Angeles County, California, United States. Incorporated in 1984, it is home to the Sunset Strip. WeHo is a trendy area known for its high-energy nightlife. The fabled Sunset Strip features the Chateau Marmont, a swanky celeb-rity hideaway, plus comedy clubs and live music venues like the legendary Whiskey a Go Go. Santa Monica Boulevard, awash in rainbow flags, is home to a number of gay bars, dance clubs and shops. WeHo also offers some of the city’s most buzzworthy restaurants.

West Hollywood is bounded by the city of Beverly Hills on the west, and by neighbor-hoods of the city of Los Angeles: Hollywood Hills on the north, Hollywood on the east, the Fairfax District on the southeast, and Beverly Grove on the southwest. The city's irregu-lar boundary is featured in its logo; it was largely formed from the unincorporated Los Angeles County area which had not become part of the surrounding cities.

95

Walk Score

Walker's ParadiseDaily errands do not require a car.

61

Transit Score

Good TransitMany nearby public

transportation options.

65

Bike Score

BikeableSome bike

infrastructure.

NEARBY AMENITIES

Beverly Hills 3 mi Hollywood 1 mi Westwood 7 mi Santa Monica 12 mi

HOLLYWOODHIGH SCHOOL

FAIRFAXHIGH SCHOOL

HARLOWE

POINSETTIAPLAYGROUND

PLUMMER PARK

MELROSEELEMENTARY SCHOOL

HOLLYWOOD DMV

PARAMOUNT PICTURESSTUDIO TOUR

HOLLYWOODBOULDERS

HOLLYWOODWALK OF FAME

LAURELCANYON

RUNYONCANYON PARK

HOLLYWOODPLAYGROUND

GOLD'S GYM

GROUNDED CAFE

STARBUCKS

NEXT DOORLOUNGE

HOPLITE

IT'S BOBA TIME

SIREN STUDIOSORANGE

GNCCVS


JAY MARTINEZManaging Principal

818.212.3057 cell818.688.8140 [email protected]

4605 Lankershim Blvd. Suite 214Universal City, CA 91602

ELIZABETH CLARKSenior VicePresident

310.740.7283 cell310.421.4184 [email protected]

150 S Rodeo Dr. Suite1100Beverly Hills, CA 90210


4605 Lankershim Blvd, Suite 214 | Universal City, CA 91602818.212.3057 • www.hudsonpartnersinc.com

© 2020 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. 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.

www.hudsonpartnersinc.com JAY MARTINEZManaging Principal

c: 310.658.3375p: 818.212.3057f: 818.688.8140e: [email protected]

CalBRE: 01367663

ELIZABETH CLARKSenior Vice President

c: 310.740.7283p: 310.525.3702f: 310.421.4184e: [email protected]

CalBRE: 01811246

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

creative office portfolio 3 buildings / 1 parcel€¦ · cross street la brea ave/santa monica blvd...

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