offering memorandum 14242 calvert street | van nuys · bordering other large cities such as sherman...
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1 4 2 4 2 C A L V E R T S T R E E T | V A N N U Y S
O F F E R I N G M E M O R A N D U M
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MATTHEWS REAL ESTATE INVESTMENT SERVICES2
C O N T E N T S
4PROPERTYOVERVIEW 8
FINANCIALOVERVIEW 12
AREAOVERVIEW
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DAVID J. HARRINGTON
National Director - Multifamily
Direct +1.310.295.1170Mobile [email protected] No. 01320460
AARON GUIDO Associate - Multifamily
Direct +1.310.295.4335Mobile [email protected] No. 02013115
PROPERTYOVERVIEW
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N O N - R E N TC O N T R O L L E D
T O W N H O U S E U N I T S
Built in 1989
Four 2 bed 1.5 bath townhouse style
P R I V A T EFully gated with private parking
O P P O R T U N I T Y14242 Calvert Street presents a unique opportunity to capitalize on a non-rent controlled multifamily investment with healthy income in a growing market. The property is a non-rent controlled turn-key asset with renovated units and low maintenance.
With non-rent controlled properties being in limited supply, this opportunity provides an investor a chance to acquire an excellent property in an area with continued growth.
This centrally located asset has proximity to major employment centers, shopping, dining, and transport. Given upward employment trends and continued gentrification of this area, the run way for future growth should be long.
P R O P E R T Y D E S C R I P T I O N
• 4 units built in 1989
• Not subject to rent control laws
• HVAC units
• New windows and sliding doors
• Tankless water heaters in each unit
• Separately metered for gas and electric
• Security gate
• On-site laundry
• Private parking
• Not subject to soft story retrofit ordinance
• Each unit has a private balcony
• All 4 units are townhouse style
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P R O P E R T Y P H O T O S
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FINANCIALOVERVIEW
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UNIT MIX
Total Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent
4 2+1.5 100% $1,800 $7,200 $1,975 $7,900
Scheduled Monthly Rent: $7,200 $7,900
Scheduled Yearly Rent: $86,400 $94,800
INVESTMENT SUMMARY
Offering Price: $1,329,000 Number of Units: 4Property: 14242 Calvert Street, Van Nuys, CA 91401 Year Built: 1989
APN: 2240-024-020Price Per Unit: $332,250 Gross Sq. Ft.: 3,259Price Per S.F.: $407.79 Average S.F. Per Unit: 815Cap (current / market): 4.55% / 4.81% Lot Size (S.F.): 6,150GRM (current / market): 15.28 / 13.93
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ANNUALIZED OPERATING DATA
Current MarketScheduled Gross Income: $86,400 $94,800 10% Upside
Less Vacancy Reserve: 3.0% $2,592 3.0% $2,844 *
Laundry Income: $576 $576Gross Operating Income: $84,384 $92,532Expenses: 27.6% $23,873 30.25% $28,673 *Net Operating Income: $60,511 $63,859
* As a percent of Scheduled Gross Income
*Laundry income is estimated at $12 per unit per month
PRO FORMA ANNUAL OPERATING EXPENSES
Current Per Unit % of SGI*Taxes 1.250% x Sale Price $16,613 $4,153 19%*Insurance $0.35 x GSF $1,141 $285 1%Repairs & Maintenance $500 x Units $2,000 $500 2%Turnover $250 x Units $1,000 $250 1%Utilities Actual T12 $1,760 $440 2%Trash $150 x Units $600 $150 1%
Pest Control $40 x Units $160 $40 0%General Administration $150 x Units $600 $150 0.69%
Total Expenses $23,873 $5,968 27.6%
Current Per Unit % of SGINon-controllable expenses: Taxes, Ins., Reserves: $17,753 $4,438 20.5%Total Expense with out Taxes $7,261 $1,815 8.40%
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RENT ROLL
# Unit Mix Rent Market Rent
1 101 2+1.5 $1,850 $1,975
2 102 2+1.5 $1,650 $1,975
3 103 2+1.5 $1,850 $1,975
4 104 2+1.5 $1,850 $1,975
Totals $7,200 $7,900
Averages $1,800 $1,975
AREAOVERVIEW
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#1
63%
37.6
MOST POPULATED COUNTY IN THE U.S.(L.A. COUNTY)
OF SAN FERNANDO VALLEY WORKERS ARE IN WHITE-COLLAR POSITIONS
MEDIAN AGE IN THE VALLEY
1.7M 332.6k $69.1kSan Fernando
Valley’s population is
forecast to grow 4.2% over the next 5 years
31% of residents 25years and older hold a bachelor’s degree orhigher, compared to
29% nationally
The Valley’s medianhousehold income
is projected to reach$69,123 by 2022, up
10.4% from 2017
S A N F E R N A N D O V A L L E Y The San Fernando Valley features a strong and well-diversified economy. The Valley is home to numerous large employers, including some 50,000 businesses employing over 700,000 workers, the most well-known of which are involved in motion pictures, recording, and television production and the medical and biotech industries. Among the top entertainment companies in the San Fernando Valley are Disney, Warner Brothers, NBC, and DreamWorks. Other important segments of the local economy include financial and health services as well as aerospace, biotech, and high-tech manufacturing, with BlueShield, Amgen and Kaiser to name a few.
POPULATION 1-MILE 3-MILE 5-MILE
2022 Projection 47,772 319,284 747,193
2017 Estimate 46,276 307,053 717,156
2010 Census 44,828 293,501 683,147
Growth 2017-2022 3.23% 3.98% 4.19%
Growth 2011-2017 3.23% 4.62% 4.98%
HOUSEHOLDS
2022 Projection 16,605 117,897 258,291
2017 Estimate 16,024 113,116 247,480
2010 Census 15,246 106,418 231,074
Growth 2017-2022 3.63% 4.23% 4.37%
Growth 2011-2017 3.95% 4.96% 5.15%
D E M O G R A P H I C S
INCOME
2017 Average Household Income $66,114 $79,621 $85,393
2017 Median Household Income $44,108 $51,542 $54,742
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van nuys
Van Nuys is one of the fastest growing cities in Los Angeles with a projected growth of over 4% in 2022. Boasting a population of more
than 110,000 it is one of the densest cities in Los Angeles County and home to a large range of employers. Bordering other large cities
such as Sherman Oaks, North Hollywood, and Reseda it provides for ample employment, shopping, and dining opportunities.
LOCAL SHOPPING DISTANCE FROM MAJOR FREEWAYS
± 2 miles ± 1 mile ± 2 mile ± 2.5 miles ± 3 miles ± 5 miles
E C O N O M I C S N A P S H O TVan Nuys is located in Los Angeles County and part of the Los Angeles-Long Beach-Anaheim MSA, the 13th-most populated metropolitan area in the world and the second-largest MSA in the United States. The city of Van Nuys is a thriving community within central San Fernando Valley and convenient access to Interstate 405 or Metrolink rail service allows for an easy commute to employment hubs throughout Los Angeles County.
• Valley Presbyterian Hospital is a 350-bed general medical and surgical hospital with more than 500 physicians, situated within walking distance of the property.
• Van Nuys Airport (VNY), located four miles northwest of the property, plays a crucial role in the Southern California airport system and ranks as one of the world’s busiest general aviation airports serving an estimated 320,000 passengers per year. With over 100 businesses located in the 730-acre airport, VNY has an economic impact of more than $2 billion annually to the Southern California economy, supporting over 10,480 jobs directly and generating an earnings impact of $707 million.
• Located less than 20 minutes from the property, construction is progressing on NBC Universal’s $1.6 billion Evolution Plan at its 391-acre Universal City campus. This entire project will have an economic impact of $6.3 billion, supporting 31,000 construction and production jobs, and create 12,000 new permanent positions.
• Warner Center, known as the “Downtown of the Valley,” is a regional center located 25 minutes west of the property. Warner Center contains a diverse mix of companies and industries with a concentration in healthcare, financial, and professional services. Approximately 40,000 employees work within the Warner Center area at major businesses including Health Net, Anthem Blue Cross, and Ajilon Finance.
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MATTHEWS REAL ES T ATE INVES T MENT S ERVICES1 6
LOS ANGELES, CALIFORNIA
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Point of Interest Distance from Subject
Downtown Los Angeles 17 Miles
Universal Studios 7 Miles
The Forum 20 Miles
Sherman Oaks Galleria 3 Miles
Point of Interest Distance from Subject
The Grove 13 Miles
Dodger Stadium 17 Miles
Staples Center 17 Miles
USC 17 Miles
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T O P E M P L OY E R S
The Greater Los Angeles Area is the second- largest urban region in the United States. The Los Angeles Metropol i tan Stat ist ical Area has a populat ion of near ly 13 mi l l ion residents. Los Angeles is a t rend-sett ing global metropol is with an extraordinary history and a r ich cul tural her i tage. I t ’s known as the “Enterta inment Capita l of the World” and is home to renowned museums, a long with 75 mi les of sunny coast l ine.
L O S A N G E L E S M S A
E C O N O MYThe LA economy is famously and heavi ly based on the enterta inment industry, wi th a part icular focus on televis ion, mot ion pictures, interact ive games, and recorded music - the Hol lywood distr ict of Los Angeles and i ts surrounding areas are known as the “Movie Capita l of the United States” due to the region’s extreme commercial and histor ical importance to the American mot ion picture industry. Other s igni f icant sectors include shipping/internat ional t rade - part icular ly at the adjacent Port of Los Angeles and Port of Long Beach, together compris ing the United States’ busiest seaport - as wel l as aerospace, technology, petroleum, fashion and apparel , and tour ism.
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B E A C H E SThe Greater Los Angeles Area has 75 mi les of sunny coast l ine and beaches. Sandy beaches f rom Mal ibu down to Newport provide respi te f rom busy f reeways. South of LA is the vast c i ty of Long Beach, with long sandy beaches along the ocean and on Alamitos Bay.
T H E M E P A R K STwo of the most popular dest inat ion spots in Los Angeles, especial ly for those v is i t ing f rom out of state, are Disneyland and Universal Studios. These two venues, a long with Six Flags Magic Mountain, and Knott ’s Berry Farm, are LA’s most at t ract ive and popular amusement parks.
S P O R T SLos Angeles is home to several professional and col legiate sports teams. Greater Los Angeles has nine major league professional teams; including hockey, basebal l , footbal l , basketbal l , and soccer teams. Avid sports fans and spectators come to watch their favor i te teams play at the Staples Center, Dodger Stadium, and StubHub Center amongst others.
CONFIDENTIALITY AND DISCLAIMER STATEMENT
This Offering Memorandum contains select information pertaining to the business and affairs of Norwalk Square located at14242 Calvert Street, Van Nuys, CA 91401 (“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 detrimentalto 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.
E X C L U S I V E L Y L I S T E D B Y :
™
DAVID J. HARRINGTON
National Director - Multifamily
Direct +1.310.295.1170Mobile [email protected] No. 01320460
AARON GUIDO Associate - Multifamily
Direct +1.310.295.4335Mobile [email protected] No. 02013115