Download - REI Wise Report
817- 821 N. Avalon Blvd.
817-821 N. Avalon Blvd.Wilmington, CA 90744
I N V
E S
T M
E N
T S
I N V
E S
T M
E N
T S
I N V
E S
T M
E N
T S
Bijan Yaghoobia
❖ Price: $800,000 ($130/sf.)
❖ 11+% Cap Rate On Current Income
❖ Building Size: 6,120Lot Size: 9,017
❖ Dense In-Fill Area
❖ Excellent Foot and Car Traffic
❖ Just North of Major Anaheim St. Intersection
❖ On-site & Public Parking
Phone: 818-968-7771 ● Fax: 818-436-6126 ● 5619 Amorita Place ● Woodland Hills, CA 91367 ● WWW.CommercialRealEstateCorp.Com
Real Estate Investment Details
ANALYSIS
Analysis Date: September 2009Scenario: 817-821 N. Avalon
PROPERTY
Property: 817- 821 N. Avalon Blvd.
Property Address: 817-821 N. Avalon Blvd.Wilmington, CA 90744
FINANCIAL INFORMATION
Down Payment: $320,000
Passive Loss Rules: No
Closing Costs: $0
PURCHASE INFORMATION
Property Type: Commercial
Purchase Price: $800,000
Fair Market Value: $800,000
Tenants: 3
Total Rentable Sq. Ft.: 6,120
Resale Valuation 10% (capitalization of noi)
Resale Expenses: 4%
LOANS
Debt Term Rate Payment LO Costs
Interest Only $480,000 25 yrs 6.25% $2,500.00
INCOME & EXPENSES
Gross Operating Income: $108,000
Monthly GOI: $9,000
Total Annual Expenses: ($12,500)
Monthly Expenses: ($1,042)
CONTACT INFORMATION
Bijan Yaghoobia
818-968-7771
DISCLAIMER: All information is believed to be accurate.
The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections andanalysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or otherprofessional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or
other professional area before making any decisions.
page 1 of 7
Property Description817- 821 N. Avalon Blvd.
817-821 N. Avalon Blvd. Bijan YaghoobiaWilmington, CA 90744 818-968-7771
Investment Overview: ubject property offers aninvestment opportunity to acquire 3 well situatedstore fronts with 60 feet of frontage on N. AvalonBlvd., in the city of Wilmington. Three retailstores of approx. 2,000 sf. each on a 9,000 sf.lot. The property has approximately 15 parkingspaces in rear accessed by an alley. In additionis a to the public parking location just north ofthe property, at corner of Avalon & First Street.One of the units is on short lease term, thussuitable for an owner-user of an investor withtenant in mind. Major retailers in the area are: TMobile, Famsa Furniture, Bank Of America, 3Hermanos, Rite Aid, Value Plus Warehouse,ACE Check Cashing, Payless Shoe Source,Subway and others.
Tenants History: El Mago Clothing Store has been at this location for 10+ years, Internet Cafe forover 2 years and the new Furniture Store is a new tenant as of June 1, 2010 and on month tomonth basis but hase requested a long term lease from landlord. All of the tenants want to renewtheir leases and continue with their tenancy at this location.
Location Overview: Subject property is just north of signalized corner of Anaheim Street andAvalon Blvd., and few blocks just south of PCH. City of Wilmington. Only 10 miles west of LongBeach, and 6 miles east of San Pedro and Palos Verdes. Wilmington strongly benefits fromindustrial and economical development associated with one of the biggest ports in the world locatedin neighboring Long Beach. The Harbor Freeway (110), San Diego Freeway (405), and Long BeachFreeway (710) offer convenient accessibility to the surrounding Wilmington region.
Proposed Financing: 5 year fixed, 6.25% interest Amortized over 25 yearsUp to 70% LTV
page 2 of 7
Property Photos817- 821 N. Avalon Blvd.
817-821 N. Avalon Blvd. Bijan YaghoobiaWilmington, CA 90744 818-968-7771
Front View Looking South On Avalon Blvd.
Looking North On Avalon Blvd. Rear Alley and Parking Area
page 3 of 7
Maps and Aerials817- 821 N. Avalon Blvd.
817-821 N. Avalon Blvd. Bijan YaghoobiaWilmington, CA 90744 818-968-7771
page 4 of 7
Maps and Aerials817- 821 N. Avalon Blvd.
817-821 N. Avalon Blvd. Bijan YaghoobiaWilmington, CA 90744 818-968-7771
page 5 of 7
Executive Summary817- 821 N. Avalon Blvd.
817-821 N. Avalon Blvd. Bijan YaghoobiaWilmington, CA 90744 818-968-7771
ACQUISITION COSTS
Purchase Price, Points and Closing $800,000
Investment - Cash $320,000
First Loan $480,000
INVESTMENT INFORMATION
Purchase Price $800,000
Price per Tenant $266,667
Price per Sq.Ft. $130.72
INCOME, EXPENSES & CASH FLOW
Gross Scheduled Income $108,000
Total Vacancy and Credits $0
Operating Expenses ($12,500)
Net Operating Income $95,500
Debt Service ($27,500)
Cash Flow Before Taxes $68,000
Total Interest (Debt Service) ($27,500)
Depreciation and Amortization ($12,286)
FINANCIAL INDICATORS
Cash on Cash Return Before Taxes 21.25%
Optimal Internal Rate of Return (yr 2) 35.60%
Present Value at 2.0% $992,451
Debt Coverage Ratio 3.47
Capitalization Rate 11.94%
Gross Rent Multiplier 7.41
Gross Income / Rentable SF $17.65
Gross Expenses / Rentable SF ($2.04)
Operating Expense Ratio 11.57%
page 6 of 7
Lease Rent Roll817- 821 N. Avalon Blvd.
817-821 N. Avalon Blvd. Bijan YaghoobiaWilmington, CA 90744 818-968-7771
Tenant Sq. Ft. % of TotalRSF
$/SqFt Annual Rent AnnualReimburse
TIs Commissions Lease Expires RenewalTerm
RenewalIncrease
817 El Mago 2,000 32.68% $18.00 $36,000.00 $0.00 $0.00 $0.00 12/31/2015 5 years $0.00
819 Furniture Store (MTM) 2,120 34.64% $16.98 $36,000.00 $0.00 $0.00 $0.00 12/31/2010 Mon To Mon $0.00
821 Internet Cafe 2,000 32.68% $18.00 $36,000.00 $0.00 $0.00 $0.00 12/31/2013 3 year $0.00
page 7 of 7