12408 LA POMELO ROAD · 12408 LA POMELO ROAD LA MIRADA, CALIFORNIA 90638 12408 La Pomelo Road is a...

O F F E R I N G M E M O R A N D U M

12408 LA POMELO ROADLA MIRADA, CALIFORNIA 90638

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MARK JOENSPrincipal7 1 4 . 5 6 4 . 7 1 2 [email protected]# 01830403


Offering Memorandum Disclaimer

This Confidential Offering Memorandum (“Memorandum”) is being delivered to you for the sole purpose of evaluating the possible investment in 12408 La Pomelo Road, La Mirada, CA 90638 (the “Project”), and is not to be used for any other purpose or made available to any other party without the prior written consent of the Owner. It contains select information about the Project and the real estate market but does not contain all the information necessary to evaluate the Project.

The financial projections contained herein (or in any other Confidential Information) are for general reference only. They are based on assumptions relating to the overall economy and local competition, among other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While the information contained in this Memorandum and any other Confidential Information is believed to be reliable, neither Managing Member guarantees its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate the prospective purchaser’s investigation, must make its independent investigations, projections and conclusions regarding the investment in the Project without reliance on this Memorandum or any other Confidential Information.

Although additional Confidential Information, which may include engineering, environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers and environmental experts. The Managing Member does not guarantee the accuracy or completeness of the information contained in this Memorandum or any other Confidential Information provided by the Managing Member. Managing Member expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with or without written notice.

Managing Member shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Managing Member and any conditions to Managing Member’s obligations thereunder have been satisfied or waived. Each prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Managing Member and all parties approved by Managing Member and may be used only by parties approved by Managing Member. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted by Managing Member.


Lee & Associates Commercial Real Estate Services, Inc. - Orange1004 W. Taft Avenue, Suite 150Orange, CA 92865DRE# 01011260

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EXECUTIVE SUMMARY

SUMMARY OF TERMSOFFERING SUMMARY

PRICE

Best OfferTOTAL UNITS

4ACRES

0.139

NUMBER OF BUILDINGS

1NUMBER OF STORIES

2YEAR BUILT / RENOVATED

1969 / 2015

INTEREST OFFERED:

100% Fee Interest

PROPERTY TOURSProspective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with the listing agent. At no time shall the existing tenants be contacted without prior approval.

312408 LA POMELO ROAD


12408 La Pomelo Road is a four-unit multifamily property located in

the city of La Mirada, CA. This asset consists of one 3 bedroom/2 bath

unit (currently occupied by owner) and three 2 bedroom/1 bath units.

The property has nice curb appeal with beautiful landscaping and

flowers in the front and in the interior walkway of the building. The

building was built in 1969 and was renovated in 2015. All of the units

have been upgraded with new paint, flooring, kitchen appliances,

dishwashers, garbage disposals, sinks, cabinets and countertops.

Each unit has its own laundry hookup for residential convenience.

The two ground floor units come with private yards, while the two

units on the second floor have private balconies. There is plenty of

parking including a four-car garage (shared by all tenants), parking

stalls in the alley, and street parking available on La Pomelo Road.

The property is in a good North La Mirada location as it is immediately

next to major retail, education and employment opportunities. The

property is conveniently located less than 1.5 miles from Biola

University and is immediately across the street from Heights Christian

School. This Offering provides an investor the opportunity to capture

quality tenants seeking a great neighborhood with convenient access

to a wide variety of activities, transportation and retail amenities.


EXECUTIVE SUMMARY

• Stabilized Investment with Upside by BringingRents to Market

• First Time on the Market in 47 Years

• Excellent Historical Occupancy

• Property Consists of Three 2 Bedrooms/1Bathroom Units and One 3 Bedrooms/2Bathrooms Unit

• All Units are Separately Metered

• Two Ground Floor Units Come withPrivate Yards

• Two Units on the Second Floor Comewith Private Balconies

• Nearly $200,000 in RenovationsCompleted in 2015 Including:New Paint, New Flooring,Kitchen Appliances,Dishwashers, GarbageDisposals, Cabinets, andCountertops

• Nicely LandscapedFront Yard and InteriorWalkways with WellMaintained Plantsand Flowers


PROPERTY DESCRIPTION


Number of Units 4

Year Built / Renovated 1969 / 2015

Number of Buildings 1

Number of Stories 2

Exterior Walls Stucco

Building Square Footage 4,216

Lot Size 0.139 Acres

Parking Type Garage / Free Surface / Street Parking

Parcel Number 8034-028-036

# of Units Unit Type Sq. Ft. Current Rent

3 2 Bedrooms / 1 Bathroom 938 $1550 - $1650

1* 3 Bedrooms / 2 Bathrooms 1,402 $2,200*

* Currently occupied by owner* Current and Market Rent assumes this Unit is leased


COMMON AREA AMENITIES

• Nicely Landscaped Front Yard and InteriorWalkways with Well Maintained Plants andFlowers

• Beautiful Renovations Completed in 2015

• Tenants Have Access to a Four-CarGarage, Free Surface Parking Stalls in theAlley, and Open Street Parking

• Situated on a Quiet Street (La PomeloRoad), Directly Across the Street from anElementary and Junior High School

LIVING AREA AMENITIES

• All Units were completely renovated in2015

• New Paint, Flooring, Kitchen Applicances,Sinks, Cabinets, and Countertops

• Fireplace

• Garbage Disposals in Each Unit

• Interior Washer and Dryer Hookups

• Private Patios and Private Balconies


SALES COMPARABLES

Properties # of Units Unit Mix Year Built SF Price Current CAP Current GRM $/Unit $/SF Sale Date/Status

* 12408 La Pomelo Road La Mirada, CA 90638 4Three 2 Bed/1 Bath & One 3

Bed/2 Bath1969 4216 $ Best Offer _ _ $ _ $ _ Active

1 201 S Acacia Fullerton, CA 92831 4 Four 2 Bed/1 Bath N/A 2960 1,055,000.00$ 4.00% N/A 263,750.00$ 356.42$ 5/23/2019

2 1633 Via Mirada Fullerton, CA 92833 4

One 1 Bed/1 Bath, One 2 Bed/1 Bath, One 2 Bed/2 Bath, & One 3 Bed/2 Bath

1965 4087 1,420,000.00$ 3.43% 18.39 355,000.00$ 347.44$ 12/21/2018

3 517 Williamson Avenue Fullerton, CA 92832 4 Four 2 Bed/2 Bath 1992 7800 1,500,000.00$ 4.41% 18.50 375,000.00$ 192.31$ 8/31/2018

4 8205 Larson Avenue Garden Grove, CA 92844 4 Four 2 Bed/2 Bath 1965 4000 1,260,000.00$ 3.86% 20.78 315,000.00$ 315.00$ 8/29/2018

5 6032 Lemon Avenue Cypress, CA 90630 4Three 2 Bed/1 Bath & One 3 Bed/2 Bath

1964 3846 1,460,000.00$ 3.40% N/A 365,000.00$ 379.62$ 5/22/2019


Income Current MarketGross Scheduled Rent 85,200.00$ 91,500.00$ Less: Vacancy / Deductions 3.00% 2,556.00$ 3.00% 2,745.00$ Total Effective Rental Income 82,644.00$ 88,755.00$ Other Income ‐$ 7,200.00$ Effective Gross Income 82,644.00$ 95,955.00$ Less: Expenses $ $Net Operating Income $ $Total Return $ $

Expenses Current MarketReal Estate Taxes $ $

Insurance 1,620.00$ 1,620.00$ Utilities ‐ Trash 2,256.00$ 2,256.00$ Utilities ‐ Common Area Electricity 720.00$ 720.00$ Utilities ‐ Water & Sewer 780.00$ 780.00$

# of Units Unit Type Sq Ft per Unit Scheduled Rents / Unit Market Rent / Unit

Gardener 1,320.00$ 1,320.00$

3 2 Bedrooms / 1 Bathroom 938 1,600.00$ 1,775.00$

Pest Control 684.00$ 684.00$

1* 3 Bedrooms / 2 Bathrooms 1402 2,300.00$ 2,300.00$

Total Expenses $ $ Expenses/Unit $ $ Expenses/SF $ $

*Currently occupied by owner*Current and Market Rent assumes this Unit is leased

Summary

PRICING DETAILS

FINANCIAL


Price Best Offer# of Units 4Price per Unit -Price per SqFt -Rentable SqFt 4,216Lot Size 0.139 AcresYear Bulit 1969

23,330.00

59,314.00 59,314.00

15,950.00

23,330.00 5,832.50

5.53

23,330.00 72,625.00 72,625.00

15,950.00

23,330.00 5,832.50

5.53

OPERATING STATEMENT

Income Current Market Per Unit Per SF

Gross Potential Rent 85,200.00$ 91,500.00$ 22,875.00$ 21.70$

Vacancy Factor 2,556.00$ 3% 2,745.00$ 3% 686.25$ 0.65$

Effective Rental Income 82,644.00$ 88,755.00$ 22,188.75$ 21.05$

Laundry ‐$ ‐$ ‐$ ‐$

Parking ‐$ 7,200.00$ 1,800.00$ 1.71$

Effective Gross Income 82,644.00$ 95,955.00$ 23,988.75$ 22.76$

Expenses Current Market Per Unit Per SF

Real Estate Taxes 1.10% $

Insurance 1,620.00$ 1,620.00$ 405.00$ 0.38$

Utilities ‐ Trash 2,256.00$ 2,256.00$ 564.00$ 0.54$

Utilities ‐ Common Area Electricity 720.00$ 720.00$ 180.00$ 0.17$

Utilities ‐ Water & Sewer 780.00$ 780.00$ 195.00$ 0.19$

Gardener 1,320.00$ 1,320.00$ 330.00$ 0.31$

Pest Control 684.00$ 684.00$ 171.00$ 0.16$

Total Expenses 22,230.00$ $

Expenses as a % of EGI

Net Operating Income 73,725.00$ 17.49$


$ 15,950.00

$ 23,330.0028.23%

$ 60,414.00

$ 15,950.00

24.31%

$ 3,987.50

$ 5,832.50

$ 18,431.25

3.78

5.53

Unit Unit Type Square Feet Current Rent/Month Current Rent / SqFt/ Month Potential Rent / Month Potential Rent / SqFt / Month

1 2 Bedrooms / 1 Bathroom 938 1,550.00$ 1.65$ 1,775.00$ 1.89$



4* 3 Bedrooms / 2 Bathroom 1402 2,300.00$ 1.64$ 2,300.00$ 1.64$

Total 4216 7,100.00$ 6.76$ 7,625.00$ $

*Currently occupied by owner*Current and Market Rent assumes this Unit is leased

Display Rent as: Monthly

Rents to Show:

Rental Range Rent:

Unit Type # of Units Avg SqFt Rental Range Avg. Rent Avg. Rent / SqFt Monthly Income Avg. Rent Avg. Rent / SqFt Monthly Income

2 Bedrooms / 1 Bathroom 3 938 $1550 ‐ $1650 1,600.00$ 1.71$ 4,800.00$ 1,775.00$ 1.89$ 5,325.00$

3 Bedrooms / 2 Bathroom* 1 1,402 $2,300 2,300.00$ 1.64$ 2,300.00$ 2,300.00$ 1.64$ 2,300.00$

Total/Weighted Averages 4 1,775.00$ 1.69$ 7,100.00$ 1,906.25$ 1.83$ 7,625.00$

Gross Annualized Rents 85,200.00$ 91,500.00$

Scheduled and Potential

Scheduled

Scheduled Potential

RENT ROLL SUMMARYas of July 2019

RENT ROLL


1,170

7.32

12408 LA POMELO ROAD · 12408 LA POMELO ROAD LA MIRADA, CALIFORNIA 90638 12408 La Pomelo Road is a...

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