shirley avenue - loopnet...debt service $55,821 $55,821 net cash flow after debt service 1.95%...

OFFERING MEMORANDUM

6453SHIRLEY AVENUE

R E S E D A , C A 9 1 3 3 5

AFFILIATED BUSINESS DISCLOSURE

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENT

Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMER

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

Copyright Notice

© 2020 CBRE, Inc. All Rights Reserved.

I .

II .

III .

IV.

Investment Summary

Financial Overview

Market Comparables

Market Overview

CONTACTJOSH LUCHS

Senior Vice PresidentO: +1 310 550 2676C: +1 818 231 2477Lic. [email protected]

JAMES KEADY

Investment AssociateO: 1 310 550 2615C: 1 408 857 7443Lic. [email protected]

DAVID HENNEY

Investment AssociateLic. 01960833

EVAN WOOD


JARED FELDMAN

Investment [email protected]

ADAM KESSLER

Investment Associate L ic . 02094386

JUSTIN ROMIG


RESEDA, CA 91335

6453

SH IRLEY AVENUE

I N V E S T M E N T O V E R V I E W

R E S E D A , C A 9 1 3 3 5

6453

S H I R L E Y AV E N U E

I

THE

OFFERING

Josh Luchs and James Keady of CBRE are pleased to present for sale an 8 unit multifamily building located at 6453 Shirley Ave, Reseda.

Constructed in 1958, the 5,880 square foot property is located on a 9,763 square foot lot. It's located just North of Victory Blvd, less than a mile from Pierce College. The building consists of four 1BD/1BA, and four 2BD/1BA.

S H I R L E Y AV E N U E64535

INVESTMENT

HIGHLIGHTS

Transportation1/2 MILE TO THE ORANGE LINE

Area Highlights <1 MILE FROM PIERCE COLLEGE

Avg. House Value is $560,588

Covered Parking

Onsite Laundry

Individually Metered


AREA

MAP

6453 SHIRLEY AVE


PROPERTY

SUMMARY

OTHER

UNIT MIX

Units Unit Type Avg. Sq Ft

4 1+1

4 2+1

8 TOTAL 735

PRICE $1,575,000

PRICE/UNIT $196,875

PRICE/SF $267.86

CAP RATE 4.24%

GRM 14.67

ADDRESS

6453 Shirley AveReseda, CA 91335

YEAR BUILT

1958

BUILDING AREA

5,880

UTILITIES

Individually metered for gas and electric

# OF BUILDINGS

1

APN

2131-027-016

# OF UNITS

8

ZONING

LAR3

PARKING

8 Spaces

LAND AREA

.22 acres

Laundry room No 1 Per Unit Master

WASHING MACHINE

CENTRAL A/C

STORAGE WATER HEATER


LOCAL

MAP

6453 SHIRLEY AVE


R E S E D A , C A 9 1 3 3 5

6453


F I N A N C I A L O V E R V I E W

IIMULTIFAMILY

RENT ROLL

SUMMARY

CURRENT POTENTIAL POTENTIAL

# OF AVG SQ RENTAL AVERAGE AVERAGE MONTHLY AVERAGE AVERAGE MONTHLY

UNIT TYPE UNITS FEET RANGE RENT RENT / SF INCOME RENT RENT / SF INCOME

1+1 4 $811 - $1 ,400 $1 ,038 $4,150 $1 ,700 $6,800

2+1 4 $1 ,035 - $1 ,700 $1 ,209 $4,835 $2,013 $8,050

TOTALS/WEIGHTED AVERAGES 8 735 $1,123 $1.53 $8,985 $1,856 $2.53 $14,850

GROSS ANNUALIZED RENTS $107,820 $178,200

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

RENT ROLL

DETAILS

CURRENT POTENTIAL

UNIT UNIT TYPE RENT/MONTH RENT/SF/MONTH RENT/MONTH RENT/SF/MONTH

1 2+1 $1 ,060 $2 ,000

2 1+1 $858* $1 ,750

3 1+1 $1 ,400 $1 ,750

4 2+1 $1 ,700 $2 ,150

5 2+1 $1 ,040* $2 ,150

6 1+1 $811* $1 ,750

7 1+1 $1 ,081* $1 ,750

8 2+1 $1 ,035* $2 ,150

S H I R L E Y AV E N U E64531 1

*Rents as of March 1, 2020

OPERATING

STATEMENT

INCOME CURRENT PRO FORMA NOTES PER UNIT PER SF

RENTAL INCOME

GROSS POTENTIAL RENT 178 ,200 178 ,200 22 ,275 30.31

LOSS / GAIN TO LEASE (70 ,380 ) 39.5% 0 0 0.00

GROSS CURRENT RENT 107 ,820 178 ,200 22 ,275 30.31

PHYSICAL VACANCY (3 ,235 ) 3.0% (5 ,346) 3.0% (668) (0.91)

TOTAL VACANCY ($3,235) 3.0% ($5,346) 3.0% ($668) ($1)

EFFECTIVE RENTAL INCOME 104 ,585 172 ,854 21 ,607 29.40

OTHER INCOME

L AUNDRY 600 600 75 0.10

TOTAL OTHER INCOME $600 $600 $75 $0.10

EFFECTIVE GROSS INCOME $105,185 $173,454 $21,682 $29.50

EXPENSES CURRENT PRO FORMA NOTES PER UNIT PER SF

REAL ESTATE TAXES 18 ,743 18 ,743 2 ,343 3.19

INSURANCE 2 ,673 2 ,673 334 0.45

DWP 4 ,421 4 ,421 553 0.75

UTILITIES - GAS 1,172 1,172 147 0.20

TRASH REMOVAL 3 ,114 3 ,114 389 0.53

REPAIRS & MAINTENANCE 4 ,000 4 ,000 500 0.68

LANDSCAPING 1,200 1,200 150 0.20

GENERAL & ADMINISTRATIVE 657 657 82 0.11

M ISC. EXPENSES 1 ,000 1 ,000 125 0.17

OPERATING RESERVES 1 ,000 1 ,000 125 0.17

TOTAL EXPENSES $37,980 $37,980 $4,748 $6.46

EXPENSES AS % OF EGI 36.1% 21.9%

NET OPERATING INCOME $67,205 $135,474 $16,934 $23.04



FINANCIAL

SUMMARY

OPERATING DATASUMMARY

PRICE $1,575 ,000

DOWN PAYMENT $582,750 37%

NUMBER OF UNITS 8

PRICE PER UNIT $196,875

PRICE PER SQFT $267.86

GROSS SQFT 5,880

LOT SIZE 0.22 ACRES

APPROX. YEAR BUILT 1958

RETURNS CURRENT PRO FORMA

CAP RATE 4.27% 8.60%

GRM 14.61 8.84

CASH-ON-CASH 1 .95% 13.67%

DEBT COVERAGE RATIO 1.20 2.43

INCOME CURRENT PRO FORMA

GROSS SCHEDULED RENT $107 ,820 $178,200

LESS: VACANCY/DEDUCTIONS 3.0% $3,235 3.0% $5,346

TOTAL EFFECTIVE RENTAL INCOME $104,585 $172,854OTHER INCOME $600 $600

EFFECTIVE GROSS INCOME $105,185 $173 ,454

LESS: EXPENSES 36.1% $37,980 21.9% $37,980

NET OPERATING INCOME $67 ,205 $135,474

CASH FLOW $67 ,205 $135,474

DEBT SERVICE $55,821 $55,821

NET CASH FLOW AFTER DEBT SERVICE 1 .95% $11 ,384 13.67% $79,653

PRINCIPAL REDUCTION $17 ,991 $18,696

TOTAL RETURN 5.04% $29 ,376 16.88% $98,349

# OF UNITS UNIT TYPE CURRENT RENTS MARKET RENTS

4 $1 ,038 $1 ,700

4 $1 ,209 $2,013

ONE BEDROOM

TWO BEDROOM

FINANCING 1ST LOAN

LOAN AMOUNT $992,250

LOAN TYPE NEW

INTEREST RATE 3.85%

AMORTIZATION 30 YEARS

YEAR DUE 2025

EXPENSES CURRENT PRO FORMA

REAL ESTATE TAXES 18,743 18 ,743

INSURANCE 2,673 2,673

DWP 4,421 4 ,421

UTIL IT IES - GAS 1 ,172 1 ,172

TRASH REMOVAL 3 ,114 3 ,114

REPAIRS & MAINTENANCE 4,000 4,000

L ANDSCAPING 1 ,200 1 ,200

GENERAL & ADMINISTRATIVE 657 657

MISC. EXPENSES 1,000 1 ,000

OPERATING RESERVES 1,000 1 ,000

TOTAL EXPENSES $37,980 $37,980EXPENSES/UNIT $4,748 $4,748EXPENSES/SF $6.46 $6.46



M A R K E T C O M P A R A B L E S

R E S E D A , C A 9 1 3 3 5

6453


III

SALES COMPARABLES

OVERVIEW

6453 SHIRLEY AVE

19340 WYANDOTTE ST 7515 CANBY AVE

20554 HARTLAND ST 8024 OWENSMOUTH AVE

7231 ALABAMA AVE 21024 BRYANT ST

3

1

2

3

2

1

4

4

6453 SHIRLEY AVE

5

6

6

5


AVERAGE SALE

PPU = $214,042

SUBJECT PROPERTY SALE COMPS

300,000

250,000

200,000

150,000

100,000

50,000


AVERAGE SALE

PSF = $235.85



AVERAGE SALE

CAP RATE = 4.45%



AVERAGE SALE

GRM = 13.39



SALES COMPARABLES

DETAILS

ADDRESS PRICE CLOSE OF ESCROW

PRICE/UNIT PRICE/SF CAP RATE GRM YEAR

BUILTUNITTYPE

# OF UNITS TOTAL

6453 SHIRLEY AVERESEDA, CA 91335

$1,575,000 $196,875 $267.86 4.27% 14.61 19581+12+12+2

413

8

1

19340 WYANDOTTE STRESEDA, CA 91335

$4 ,475 ,000 2/4/2019 $223,750 $168.84 4.27% 12.92 19682+13+2

173

20

2

20554 HARTLAND STRESEDA, CA 91335

$1,290,000 10/16/2018 $215 ,000 $277.42 3.99% 14.18 19571+12+1

24

6

3

7231 ALABAMA AVERESEDA, CA 91335

$2,475,000 12/13/2019 $247,500 $247.30 1963STUDIO

1+155

10


SALES COMPARABLES

DETAILS

ADDRESS PRICE CLOSE OF ESCROW

PRICE/UNIT PRICE/SF CAP RATE GRM YEAR

BUILTUNITTYPE

# OF UNITS TOTAL

4

7515 CANBY AVERESEDA, CA 91335

$1,830,000 8/12/2019 $183,000 $245.64 5.00% 13.18 19601+12+1

64

10

5

8024 OWENSMOUTH AVECANOGA PARK, CA 91304

$3 ,300,000 9/11/2019 $165,000 $188.12 4.53% 1959 STUDIO 20 20

6

21024 BRYANT ST CANOGA PARK, CA 91304

$5 ,000,000 7/2/2019 $250,000 $287.75 4.44% 13.28 19661+12+13+2

6122

20


RENT COMPARABLES

OVERVIEW

2 1

4

3

6453 SHIRLEY AVE

19305 VICTORY BLVD 6439 SHIRLEY AVE

19441 VICTORY BLVD

19143 VICTORY BLVD

1

2

3

4

6453 SHIRLEY AVE


AVERAGE

1 BEDROOM = $1,675

SUBJECT PROPERTY RENT COMPS


AVERAGE

2 BEDROOM = $2,190

SUBJECT PROPERTY RENT COMPS


RENT COMPARABLES

DETAILS

ADDRESS UNITTYPE # OF UNITS TOTAL RENT SF AVERAGE

RENT/SF


ONE BEDTWO BED

44

8$1,038$1,209

1

19305 VICTORY BLVD RESEDA, CA 91335

2+2 1 1 $2,295 1000 $2.30

2


2+2 1 1 $2,295 1000 $2.30


RENT COMPARABLES

DETAILS

ADDRESS UNITTYPE # OF UNITS TOTAL RENT SF AVERAGE

RENT/SF

3


1+12+2

11

2$1,750$2,295

7101061

$2.46$2.16

4


1+12+2 1

12

$1,875$1,600

850650

$2.21$2.46


M A R K E T O V E R V I E W

R E S E D A , C A 9 1 3 3 5

6453


IV

WARNER

CENTER

Warner Center is the heart of the San Fernando Valley, an emerging “urban-suburban” neighborhood in Greater Los Angeles. The neighborhood is in the midst of a long-term transformation with planned office, retail, entertainment and multifamily housing developments connected through the Metro Orange Line to the nation’s second largest metro. The market is home to a diverse employment base comprised of both large corporate headquarters and small business companies in a wide range of industries such as entertainment, media, financial, legal, professional services, telecom, biotechnology, advertising, and health care. Major employers include Kaiser Permanente, Health Net, Farmers Insurance, Zenith Insurance, Viking River Cruises, Blackline and ReachLocal.

The neighborhood’s Warner Center 2035 specific plan is designed to densify 1,100-acre neighborhood that is home to corporate headquarters and major retailers. It is designed to increase housing from 8,000 to 26,000 units and will double commercial space from 15 million sq. ft. to 30 million sq. ft. in a walkable district. Current planned developments include Westfield Promenade, a $1.5-billion mixed-used project; Rocketdyne, a 47-acre mixed-used development; and Adler Realty’s 24-acre, $1 billion mixed-use development.


SAN FERNANDO

VALLEY

Known as “the Valley” the region defines the northern portion of the City of Los Angeles and encompasses 289 square miles. Bound by the Santa Susana Mountains on the west, San Gabriel Mountains to the north, Verdugo Hills to the east and the Santa Monica Mountains to the south.

In the Valley, the majority of communities are under the jurisdiction of the City of Los Angeles, with exception to the incorporated cities of Burbank, Calabasas, Glendale, Hidden Hills and San Fernando. There are 21 other distinct communities, most notably Chatsworth, Granada Hills, Northridge, Canoga Park, Woodland Hills, Encino, Van Nuys, Sherman Oaks, Studio City, North Hollywood, Valley Village and Universal City.

The Valley developed primarily as a residential community serving employment centers in central Los Angeles. In the decades following World War II, the Valley saw substantial commercial development and continued residential growth. Key industries based in the region today include healthcare, entertainment and technology. The Valley is diversified in terms of its residential, retail, office, and industrial development.


KEY DISTANCES

BY ROAD

.5 MILES 1 MILEORANGE LINE 101 FREEWAY

<1 MILEPIERCE COLLEGE

2 MILES 4 MILES 5 MILESTHE WARNER CENTER VAN NUYS AIRPORT SHERMAN OAKS

CASTLE PARK

5 MILES <5 MILES 2 MILESSHERMAN OAKS

GALLERIACSUN KAISER PERMANENTE

WOODLAND HILLS MEDICAL CENTER


LOCAL AMENITIES MAP

MARKETPLACEINTERNATIONAL

MARKETPLACEINTERNATIONAL

Blu Jam Cafe

ENCINO

RESEDA

WINNETKACANOGA PARK

Pierce CollegeWestfield Topanga& The Village

2 Miles

6453 Shirley Ave

Warner Center

MOS#375462

Saticoy St

Vanowen St

Roscoe Blvd

Ventura Blvd

Sherman Way

Wells Dr

Tam

pa

Ave

evA ot o

S eD

Re

sed

a B

lvd

Win

ne

tka

Ave

Victory Blvd

Wh

ite

Oa

k A

ve

Ca

no

ga

Ave

Burbank Blvd

Oxnard St

evA yeldni L

Topham St

Dumetz Rd

evA ainarr e

S

evA nedl ana

V

evA acce

M

Burbank Blvd

UV27

£¤101

£¤101

N

6453 SHIRLEY AVE


CONTACT

CBRE, INC.Broker Lic. 00409987

© 2020 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.

JOSH LUCHS

Senior Vice PresidentO: +1 310 550 2676C: +1 818 231 2477Lic. [email protected]

JAMES KEADY

Investment AssociateO: 1 310 550 2615C: 1 408 857 7443Lic. [email protected]

DAVID HENNEY


EVAN WOOD


JARED FELDMAN

Investment [email protected]

ADAM KESSLER

Investment Associate L ic . 02094386

JUSTIN ROMIG


6453SHIRLEY AVENUE

R E S E D A , C A 9 1 3 3 5

shirley avenue - loopnet...debt service $55,821 $55,821 net cash flow after debt service 1.95%...

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