16519 Ainsworth St - Gardena, CA PROPERTY OVERVIEW 16519 S Ainsworth Street is a 10-unit apartment...

AINSWORTH ST GARDENA, CA16519

1O F F E R I N G M E M O R A N D U M

™™

NABIL AWADAAssociate

D: (310) 844-9362 M: (310) 469-2974

E: [email protected] No. 02046840 (CA)

DAVID HARRINGTON EVP & National Director

D: (310) 295-1170 M: (310) 497-5590


LISTED BY

P R O P E R T Y O V E R V I E W


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PROPERTY OVERVIEW

16519 S Ainsworth Street is a 10-unit apartment building located just east of Vermont Avenue and South of Gardena Boulevard in the densely populated neighborhood of Gardena, CA. Built in 1961, the property boasts an excellent mix of one studio, seven one-bedroom, one-bathroom, and two two-bedroom, two-bathroom units. The building is conveniently located just off the 110 Freeway which provides easy access to neighboring cities. The property also offers an excellent walk score of 81, with a lot of nearby shopping, dining and entertainment options. Additionally, St. Anthony of Padua School, Gardena Elementary School, and Environmental Charter Middle School-Gardena are all within a short walk.

PROPERTY HIGHLIGHTS

» 10 Units, Built in 1961 » Unit Mix: (1) Studio, (7) 1+1, (2) 2+1 » Walk Score of 81 – Very Walkable » Over 58% Rental Upside Potential » Reserved Surface Parking » 6,861 Rentable Sqft on a 6,000 Sqft Lot with LAC2 Zoning » Property is zoned for the City of Los Angeles and is subject

to rent control

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PA R C E L M A P

PHYSICAL DESCRIPTION

GROSS SF

6,861

$AVG SF PER UNIT

686 SF

APN

6121-007-015

YEAR BUILT

1961 0.14 AC

LOT SIZENO. OF UNITS

10

L O C A T I O NO V E R V I E W


GARDENA, CA

Gardena is a city located in the South Bay (southwestern) region of Los Angeles County. The city is known for its rich cultural diversity and beautiful landscaping. Gardena is a family-oriented city with many programs to meet the needs of both the family and single population. The city is proud of its high quality of life.

The City of Gardena was incorporated on September 11, 1930. It combined the rural communities of Gardena, Moneta, and Strawberry Park into a Municipal Corporation, Sixth Class City. At that time Gardena was a small farming community of about 20,000 people. Today Gardena is an active and progressive residential and business community with a city government that prides itself in providing a full range of qualified services to the community.

Gardena is bordered by Athens on the north, the Los Angeles neighborhood of Harbor Gateway on the east and south, Torrance on the southwest, Alondra Park on the west, and Hawthorne on the northwest. Gardena has a large Japanese population helping make the South Bay region of Los Angeles home to the largest concentration of Japanese companies within the mainland United States.

Digital Manga, Nissin Foods, Marukai Corporation U.S.A., and En Pointe Technologies are all headquartered in Gardena.

Population 1 Mile 3 Mile 5 Mile

2010 Census 25,203 192,454 711,869

2019 Estimate 25,916 198,149 741,990

2024 Projection 26,550 203,133 764,767

Households 1 Mile 3 Mile 5 Mile

2010 Census 8,659 61,647 215,489

2019 Estimate 8,905 63,496 224,111

2024 Projection 9,128 65,136 230,859

Income 1 Mile 3 Mile 5 Mile

Average HH Income $76,390 $84,003 $82,149

Median HH Income $54,543 $62,499 $59,493

DEMOGRAPHICS

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LOS ANGELES MSA

As the second largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California’s original 27 counties, is one of the nation’s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California’s population. The area continues to grow, especially given the vigorous residential development in downtown LA.

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ECONOMY

Famously known for a heavy entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United States. The Los Angeles-Orange County metro area alone has an enormous economy with an estimated $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas.

The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism.

TOP EMPLOYERS

F I N A N C I A LO V E R V I E W


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16519 S Ainsworth StreetGardena, CA 90247

Number of Units: 10

Year Built: 1961

APN: 6121-007-015

Gross Sq. Ft.: 6,861

Average S.F. Per Unit: 686

Lot Size (Acres): 0.14

Density: 71

I N V E S T M E N T S U M M A R Y

Offering Price Price/Unit

Price/Foot

CURRENT PRO FORMA MARKETCap Rate GRM Cap Rate GRM Cap Rate GRM

$1,595,000 $159,500 $232.47 2.80% 14.99 3.21% 14.99 6.75% 9.54

TotalUnits

Unit Mix

Unit Mix% Avg Rent P.S.F Current

Avg RentCurrent Market Market Rent Market

Monthly Rent Rent P.S.F Monthly Rent1 Studio 10% $1.46 $1,000 $1,000 $1,100 $1.60 $1,100

7 1+1 70% $1.25 $859 $6,010 $1,350 $1.97 $9,450

2 2+1 20% $1.22 $839 $1,679 $1,600 $2.33 $3,200

Scheduled Monthly Rent: $8,689 $13,750

Scheduled Yearly Rent: $104,269 $165,000

U N I T M I X

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Current Pro Forma MarketScheduled Gross Income: $104,269 $104,269 Current Rent $165,000 58% UpsideLess Vacancy Reserve: $3,128 3.0% $3,128 3.0% $4,950 3.0%Parking Income $1,800 $1,800 $1,800Other Income: $347 $347 $347Gross Operating Income: $103,288 $103,288 $162,197Expenses: $58,641 56.2% $52,120 49.99% $54,476 33.02% *Net Operating Income: $44,646 $51,168 $107,721Loan Payments: $42,645 $42,645 $42,645Pre-Tax Cash Flow: $2,001 0.21% $8,523 0.91% $65,075 6.97% **Plus Principal Reduction: $9,767 $9,767 $9,767Total Return Before Taxes: $11,768 1.26% $18,290 1.96% $74,842 8.02% *** As a percent of Scheduled Gross Income** As a percent of Down Payment

A N N U A L I Z E D O P E R A T I N G D A T A

Current Per Unit % of SGI * Pro Forma Per Unit Market Per Unit % of SGIProperty Taxes 1.250% x Sale Price $19,938 $1,994 19.30% $19,938 $1,994 $19,938 $1,994 12.1%Off-Site Management 4.0% x GOI $4,132 $413 4.00% $4,132 $413 $6,488 $649 3.9%Insurance $0.35 x GSF $3,009 $301 2.91% $2,401 $240 $2,401 $240 1.5%Repairs & Maintenance $500 x Units $15,054 $1,505 14.57% $5,000 $500 $5,000 $500 3.0%Turnover $250 x Units $0 $0 0.00% $2,500 $250 $2,500 $250 1.5%Landscaping $120 x Units $720 $72 0.70% $1,200 $120 $1,200 $120 0.7%Pest Control $25 x Units $860 $86 0.83% $250 $25 $250 $25 0.2%Utilities Trailing 12 Months $9,481 $948 9.18% $9,481 $948 $9,481 $948 5.7%Trash Trailing 12 Months $5,218 $522 5.05% $5,218 $522 $5,218 $522 3.2%General Administration $200 x Units $230 $23 0.22% $2,000 $200 $2,000 $200 1.2%Total Expenses $58,641 $5,864 56.77% $52,120 $5,212 $54,476 $5,448 33.0%

Current Per Unit % of SGINon-controllable expenses: Taxes, Ins., Reserves: $22,947 $2,295 22.0%Total Expense without Taxes $38,704 $3,870 37.12%

P R O F O R M A A N N U A L O P E R A T I N G E X P E N S E S

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Unit Mix Rent MarketRent

100 Studio $1,000 $1,100

101 1+1 $693 $1,350

102 1+1 $743 $1,350

103 1+1 $819 $1,350

104 1+1 $1,300 $1,350

105 2+1 $849 $1,600

106 1+1 $819 $1,350

107 1+1 $709 $1,350

108 1+1 $928 $1,350

109 2+1 $830 $1,600

Totals10

$8,689 $13,750

Averages $869 $1,375

R E N T R O L L

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SA L E S COM PA R A B L E S

Address Units Year Built Bldg SF Sale

Date Sale Price Price Per Unit Price Per SF Actual Cap

Rate GRM

16519 S Ainsworth Street 10 1961 6,861 - $1,595,000 $159,500 $232.47 2.80% 14.99

819-825 W 165th Pl 16 1963 12,588 7/11/18 $2,875,000 $179,688 $228.39 5.75% 11.13

846 W Alondra Blvd 8 1963 6,848 8/13/18 $1,620,000 $202,500 $236.57 5.44% 13.12

16117 S Ainsworth St 10 1965 5,910 5/24/18 $1,488,000 $148,800 $251.78

808 W 163rd St 6 1956 3,290 9/18/18 $975,000 $162,500 $296.35 5.00% 13.4

AVERAGES $173,372 $253.27 5.40% 12.55

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GIBSON ROADEL MONTE, CA

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Address Number of Units Year Built

Floor Plan

Asking Rent

STUDIO

16519 S AINSWORTH STREETGARDENA, CA 10 1961 STUDIO $1,000

15121 S BUDLONG AVENUE GARDENA, CA 14 1959 STUDIO $1,075

1245 W 166TH STREET GARDENA, CA 6 1987 STUDIO $1,125

13108 S VERMONT AVENUE GARDENA, CA 9 1930 STUDIO $1,050

AVERAGES $1,083

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2

R E N T COM PA R A B L E S

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GIBSON ROADEL MONTE, CA

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Address Number of Units Year Built

Floor Plan

Asking Rent

1 - BEDROOM

16519 S AINSWORTH STREETGARDENA, CA 10 1961 1+1 $859

14412 S BERENDO AVENUE GARDENA, CA 12 1958 1+1 $1,300

15505 S BUDLONG PLACE GARDENA, CA 19 1959 1+1 $1,495

14828 HALLDALE AVENUE GARDENA, CA 18 1959 1+1 $1,395

132 E 120TH STREET LOS ANGELES, CA 17 1964 1+1 $1,300

AVERAGES $1,373

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Address Number of Units Year Built Floor Plan Asking

Rent

2 - BEDROOM

16519 S AINSWORTH STREETGARDENA, CA 10 1961 2+1 $839

13902-06 S BUDLONG AVENUE GARDENA, CA 14 1956 2+1 $1,650

11827 S FIGUEROA STREET LOS ANGELES, CA 10 1954 2+1 $1,595

722 LACONIA BOULEVARD LOS ANGELES, CA 16 1963 2+1 $1,500

1711 MARINE AVENUE GARDENA, CA 7 1961 2+1 $1,700

AVERAGES $1,611


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This Offering Memorandum contains select information pertaining to the business and affairs of property located at 16519 Ainsworth St, Gardena, CA (“Property ”) . It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be al l-inclusive or contain al l 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 Retail Advisors. 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 l iabil ity 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 dil igence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential ;

2. You wil l hold it and treat it in the strictest of confidence; and

3. You wil l not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Retail Advisors 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 l imited 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 Retail Advisors or any of their affi l iates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, l iabil ity, 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.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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

™


LISTED BY

NABIL AWADAAssociate

D: (310) 844-9362 M: (310) 469-2974


DAVID HARRINGTON EVP & National Director

D: (310) 295-1170 M: (310) 497-5590


16519 Ainsworth St - Gardena, CA PROPERTY OVERVIEW 16519 S Ainsworth Street is a 10-unit apartment...

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