offering memorandum the mission hills manor | 18 ......not far from “the mission hills manor,...

Offering Memorandum | 9919 Sepulveda Blvd., Mission Hills

1OFFERING MEMORANDUM

9919 SEPULVEDA BLVDMISSION HILLS, CA 91345

The Mission Hills Manor | 18 UNITS

• TOWNHOME STYLE UNITS WITH PRIVATE ROOFTOP PATIOS

• BUILT AS CONDOMINIUMS

• TRUE VALUE ADD OPPORTUNITY

9919Sepulveda.com

David Weinberger818.970.0915

[email protected] DRE #01349349

Phil Seymour310.612.9800

[email protected] #00630158

www.TheSeymourGroup.net

SUBJECT TO COURT CONFIRMATION AND OVERBID CALL LISTING AGENTS FOR DETAILS


2DISCLAIMER

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due dili-gence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or rel-evance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental lim-itations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal ques-tions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appro-priate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Commercial in compliance with all applicable fair housing anvd equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or with-drawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.


3TABLE OF CONTENTS

Executive Summary

Property Highlights

Property Information

Location

Financials

9919 Sepulveda Blvd., Mission Hills

EXECUTIVE SUMMARY


5EXECUTIVE SUMMARY

SITE DESCRIPTION

Units 18

Gross Square Footage 22,662

Parcel Size 19,667

Parking 36

Guest Parking 10

Zoning LAR3

9919 Sepulveda Blvd “The Mission Hills Manor” is a 22,662

SF multifamily property located in the San Fernando valley

Submarket “Mission Hills.” The property resides on a

19,667 square foot lot.


6PROPERTY INFORMATION

18 1,259 SFTotal Unit Average Unit Size

1992 19,667 SFYear Built Lot Size

22,662 SF 36 SPACES

10 SPACES

Building Size Parking

Guest Parking


PROPERTY HIGHLIGHTS


8

The Mission Hills Manor, built in 1992 as condominiums, is located on Sepulveda Blvd which is a main thoroughfare which tenants can use to dine, shop, or ride bikes.

The unit mix is comprised of (18) 2 Bedroom + 2.5 Bathroom + Den townhome style units, each with 2 tandem parking spaces and a private rooftop patio.

The location of The Mission Hills Manor is in the highly stable rental market of Mission Hills which is adjacent to Granada Hills and is in very close proximity to the 405 freeway, 5 freeway, and 118 freeway.

Each unit is equipped with centrail air and heat, security building and individually metered for gas and electric.

PROPERTY HIGHLIGHTS


9PROPERTY HIGHLIGHTS

THE OPPORTUNITY:

INCREASE CASHFLOW:

The Mission Hills Manor offers investors a unique and rare opportunity to acquire an apartment that is ready for new ownership and, management, as well as 7% rental increases for the current tenants.

Under Assembly Bill 1482, rents can be increased by 5% + inflation. For the purposes of our projected rental increases we used a 7% increase.

EXCEPTIONAL FINANCING / LOAN OPTIONS:

MULTIPLE VALUE ADD OPPORTUNITIES:

LOS ANGELES MISSION COLLEGE:

NEW DEVELOPMENTS POISED TO ALTER MISSION HILLS:

Buyers can acquire the property with historically low interest rates and attractive financing options.

Just an 11-minute drive away is Los Angeles Mission College known as a flourishing two-year public institution in Southern California providing opportunities for transfer education, occupational training, and life-long learning.

Not far from “The Mission Hills Manor, Beverly Hills-based Icon Company plans to tear down three commercial buildings, including the shuttered Montgomery Ward, at Roscoe Boulevard and Tobias Avenue, to make way for seven new buildings measuring 584,000 square feet. That space would hold 423 units of multifamily housing plus 200,000 square feet of commercial floor area. At the center of all of that? A six-level parking garage with spaces for 1,690 cars.

An investor can see upside potential with various options that most properties don’t present, but this one does.

• Option # 1 – Operate ‘The Mission Hills Manor” as an apartment building and rehab units as natural attrition occurs• Option # 2 – Reposition the asset and sell each unit as condominiums• Option # 3 – Reposition the asset by utilizing the TIC (Tenants in Common) model


10

ZIMAS PUBLIC Generalized Zoning 01/16/2020City of Los Angeles

Department of City Planning

Address: 9919 N SEPULVEDA BLVD Tract: TR 47867-C Zoning: (Q)R3-1APN: 2660009BRK Block: None General Plan: Medium ResidentialPIN #: 201B145 152 Lot: LT 1

Arb: None

Subject


11INTERIOR PHOTOS


12EXTERIOR PHOTOS


13AERIAL PHOTOS

Subject Property


14


15AERIAL PHOTOS

Subject Property


MARKET OVERVIEW


17MISSION HILLS MARKET OVERVIEW

Mission Hills is a neighborhood in the San Fernando valley with a population of 20,733. Living in Mission Hills offers residents a dense suburban feel and most residents own their homes. In Mission Hills there are a lot of parks.

Mission San Fernando Rey de Espana


18

Mission Hills offers quick access to major production centers like Burbank and Hollywood. It’s also a safe, friendly neighborhood environment with a plethora of shopping options and access to outdoor spaces. Mission Hills is also a great option for young professionals and families working in the entertainment industry who don’t want to pay premium prices in more central locations.

• Target

• Ross Dress For Less

• Chipotle

• 24 Hour Fitness

• The Habit Burger Grill

• Chase Bank

• Jersey Mikes Subs

• Ono Hawaiian BBQ

• Fallas

• Sprint

• T Mobile

• Menchie’s

There are ample retail options north and south of the subject property, such as the Olivo at Mission Hills which provides the following merchants for Mission Hills residents:


19NEARBY AMENITIES


FINANCIALS


21FINANCIALS

FINANCIAL INDICATORS

Offering Price $5,000,000

Current CAP 3.7%

Market CAP 7.2%

Current GRM 14.6

Market GRM 9.6

Cost Per SF $221

Cost Per Unit $277,778

Cash on Cash Return, Unleveraged

3.7%

Expenses Per Unit $8,364

Expenses Per Sq Ft $6.64

BUILDING DATA

Units 18

Year Built 1992

Lot Sq Ft 19,667

Bldg Gross Sq Ft 22,662

Parking Spaces 36

Guest Parking Spaces 10

ESTIMATED ANNUALIZED EXPENSES

New Property Taxes $58,714

Water, Sewer, waste, gas, electrical

$47,094

Miscellaneous $716

Property Insurance $9,065

Maintenance & Repairs $8,726

Pest Control, gardening $3,120

Management Fees(4%) $13,740

Onsite Manager (1.5%) $4,883

Reserves & Replacements $4,500

Total Estimated Expenses -$150,557

SOURCE OF INCOME CURRENT RENTS MARKET RENTS

# of Units Unit Type Avg. Rent Total Avg. Rent Income

182 Bed / 2.5 bath

+ Den$1,563 $28,125 $2,375 $42,750

Total Rental Income $28,125 $42,750

Additional Income (HOA)

$500 $500

Total Monthly Income $28,625 $43,250

Total Annual Income $343,500 $519,000

EST. ANNUALIZED OPERATING DATA CURRENT MARKET

Scheduled Gross Income $343,500 $519,000

Less Vacancy 2.0% ($6,870) 2.0% ($10,380)

Gross Operating Income $336,630 $508,620

Less Expenses 45% ($150,557) 29% ($150,557)

Net Operating Income $186,073 $358,063

Notations:1) Real Estate Taxes have been underwritten based a tax rate of 1.174279%2) Property Insurance: Underwritten at .40 per SF3) Maintenance & Repairs: Based upon $400 per unit per year4) Property Management Fee: Projected at 4% of Total Annual Income.5) On-site Management Fee: Projected at 1.5% of Total Annual Income.6) Pest Control & Gardening based upon 2018 & 2019 actuals7) Reserves & Replacements : Based upon $250 per unit per year.8) Water, sewer, waste, gas, electrical based on 2018 & 2019 actuals


22

* Units 11 & 15 Previously Sold as Condominiums

RENT ROLL

UNIT STATUS UNIT TYPE UNIT SF CURRENT RENT PRO FORMA7% Allowable Increase under

AB 1482

1 Manager 2Bed / 2.5 Bath +Den 1259 $0 $2,375 $2,375

2 Tenant 2Bed / 2.5 Bath +Den 1259 $1,597 $2,375 $1,709

3 Tenant 2Bed / 2.5 Bath +Den 1259Section 8 $850 / $644

tenant$1,494 $2,375 $1,599




7 Tenant 2Bed / 2.5 Bath +Den 1259Section 8 $227 / $1,473

tenant$1,700 $2,375 $1,819


9 Tenant 2Bed / 2.5 Bath +Den 1259Section 8 $1,094 / $606

tenant$1,700 $2,375 $1,819





16 Tenant 2Bed / 2.5 Bath +Den 1259Section 8 $1,098 / $602

tenant$1,700 $2,375 $1,819



19 Tenant 2Bed / 2.5 Bath +Den 1259Section 8 $652 / $842

tenant$1,494 $2,375 $1,599


TOTAL: $28,125 $42,750 $32,470

Offering MemorandumThe Mission Hills Manor | 18 UNITS

9919 Sepulveda Blvd., Mission Hills, CA 91345

www.9919Sepulveda.com

David Weinberger818.970.0915

[email protected] DRE #01349349

Phil Seymour310.612.9800

[email protected] #00630158

www.TheSeymourGroup.net

DRE #01428774

offering memorandum the mission hills manor | 18 ......not far from “the mission hills manor,...

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