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
HUDSON COMMERCIAL PARTNERS, INC.7065 LEXINGTON AVE | WEST HOLLYWOOD, CA 900384 5
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
HUDSON COMMERCIAL PARTNERS, INC.7065 LEXINGTON AVE | WEST HOLLYWOOD, CA 900386 7
HUDSON COMMERCIAL PARTNERS, INC.7065 LEXINGTON AVE | WEST HOLLYWOOD, CA 900388 9
HUDSON COMMERCIAL PARTNERS, INC.7065 LEXINGTON AVE | WEST HOLLYWOOD, CA 9003810 11
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
HUDSON COMMERCIAL PARTNERS, INC.7065 LEXINGTON AVE | WEST HOLLYWOOD, CA 9003812 13
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
HUDSON COMMERCIAL PARTNERS, INC.7065 LEXINGTON AVE | WEST HOLLYWOOD, CA 9003814 15
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
HUDSON COMMERCIAL PARTNERS, INC.7065 LEXINGTON AVE | WEST HOLLYWOOD, CA 9003816 17
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.