16925 PRAIRIE AVENUE - LoopNet€¦ · 3 16925 prairie avenue torrance, ca. table of contents. 01....

16925 PRAIRIE AVENUET O R R A N C E | C A

A MARCUS & MILLICHAP INVESTMENT OPPORTUNITY

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C EConfidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified

information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the

future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or

asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any

tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable;

however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters

and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of

the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

SPECIAL COVID-19 NOTICEAll potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary,

especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on

behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus &

Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other

professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma

financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections,

analyses, and decision-making.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name

is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or

commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

16925 PRAIRIE AVE

Torrance, CA

ACT ID ZAB0130179

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16925 PRAIRIE AVENUET O R R A N C E , C A

T A B L E O F C O N T E N T S

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03 04

INVESTMENT OVERVIEW

FINANCIAL ANALYSIS

MARKET COMPARABLES

MARKET OVERVIEW

The subject property is unique in that ALL units have been

renovated with new "everything". Upgrades include new dual-pane

windows, laminate flooring, copper plumbing, granite counter tops,

electrical panels, ceiling fans, front doors and more. New railings

and sewer line, as well.

A “Buyer-friendly” 5.5% cap opportunity in one of The South Bay’s

tried-and-true rental submarkets. Torrance is known for its diverse

economic base and ideal location straddling the 405 Fwy.

Torrance has a more landlord-friendly rent control of "5% plus CPI",

annually and you get an extra 1%, annually, also, due to master-

metering of this building.

The property has 27 parking spaces and three laundry rooms – one

on each floor.

The attractive mid-5% cap pricing lends itself to excellent potential

loan-to-value – some lending institutions will lend as much as 75%

LTV on this deal! That being said, 65-70% LTV will afford a Buyer the

best interest rates – in the mid 3% range.

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Note: All units that are month-month or with a 2020 lease expiration are modeled at a rental amount incorporating the 2020 allowable increase (8% higher than current).

RENT ROLL SUMMARY

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OPERATING STATEMENT

10

NOTES

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PRICING DETAIL

16925 PRAIRIE AVE

SALES COMPARABLES MAP

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16925 PRAIRIE AVE(SUBJECT)

Emerald Towers

Aztec House Apartments

3316 W Carson St (Part of Multi-Property Sale)

2174 W 237th Street

815-819 Sartori Ave

4033 W 135th St

12613-12617 Kornblum Ave

4046 W 129th St

2919 W 141st Pl

1029 W 161st St

SALES COMPARABLES

1

2

3

4

5

7

8

6

9

10

14

Avg. 3.68%

0.0

0.6

1.2

1.8

2.4

3.0

3.6

4.2

4.8

5.4

6.0

16925Prairie Ave

EmeraldTowers

Aztec HouseApartments

815-819Sartori Ave

4033 W135th St

12613-12617Kornblum

Ave

4046 W129th St

2919 W141st Pl

1029 W161st St

Average Cap RateSALES COMPARABLES SALES COMPS AVG

SALES COMPARABLES

15

Avg. 18.12

0.00

2.70

5.40

8.10

10.80

13.50

16.20

18.90

21.60

24.30

27.00

16925Prairie Ave


815-819Sartori Ave

12613-12617Kornblum

Ave

2919 W141st Pl

1029 W161st St

Average GRMSALES COMPARABLES SALES COMPS AVG

SALES COMPARABLES

16

Avg. $282,183

$0

$40,000

$80,000

$120,000

$160,000

$200,000

$240,000

$280,000

$320,000

$360,000

$400,000

16925Prairie Ave

EmeraldTowers


3316 W CarsonSt (Part of

Multi-PropertySale)

2174 W237thStreet

815-819Sartori Ave

4033 W135th St

12613-12617Kornblum

Ave

4046 W129th St

2919 W141st Pl

1029 W161st St

Average Price Per UnitSALES COMPARABLES SALES COMPS AVG

SALES COMPARABLES

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

Units Unit TypeOffering Price: $6,399,000 1 2 Bed 1 Bath

Price/Unit: $237,000 24 1 Bed 1 Bath

Price/SF: $596.98 2 Studio

CAP Rate: 5.51%

GRM: 11.78

Total No. of Units: 27

Year Built: 1964

16925 PRAIRIE AVE16925 Prairie Ave, Torrance, CA, 90504

1

Units Unit TypeClose Of Escrow: 12/5/2019 20 1 Bdr 1 Bath

Sales Price: $9,300,000 9 2 Bdr 2 Bath

Price/Unit: $320,690

Price/SF: $430.24

CAP Rate: 3.50%


Year Built: 1972

EMERALD TOWERS 4006 Emerald Street, Torrance, CA, 90503

Close Of Escrow: 2/19/2020

Sales Price: $7,800,000


Price/SF: $455.02

CAP Rate: 3.21%

GRM: 18.00


Year Built: 1962

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AZTEC HOUSE APARTMENTS3636 W 227Th Place, Torrance, CA, 90505

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES




Price/SF: $347.73


Year Built: 1962

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3316 W CARSON ST (PART OF MULTI-PROPERTY SALE)3316 W Carson St (Part of Multi-Property Sale), Torrance, CA, 90503

4




Price/SF: $357.14


Year Built: 1963

2174 W 237TH STREET2174 W 237th Street, Torrance, CA, 90501




Price/SF: $253.45

CAP Rate: 2.64%

GRM: 25.53


Year Built: 1952

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815-819 SARTORI AVE815-819 Sartori Ave, Torrance, CA, 90501

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES




Price/SF: $246.62

CAP Rate: 4.44%


Year Built: 1964

6

4033 W 135TH ST4033 W 135th St, Hawthorne, CA, 90250

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Price/SF: $261.00

CAP Rate: 4.59%

GRM: 14.84


Year Built: 1985

12613-12617 KORNBLUM AVE12613-12617 Kornblum Ave, Hawthorne, CA, 90250




Price/SF: $325.25

CAP Rate: 4.20%


Year Built: 1985

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4046 W 129TH ST4046 W 129th St, Hawthorne, CA, 90250

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES




Price/SF: $304.46

CAP Rate: 4.02%

GRM: 14.43


Year Built: 1958

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2919 W 141ST PL2919 W 141st Pl, Gardena, CA, 90249

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Price/SF: $261.26

CAP Rate: 2.84%

GRM: 17.79


Year Built: 1986

1029 W 161ST ST1029 W 161st St, Gardena, CA, 90247

SALES COMPARABLES

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16925 PRAIRIE AVE

RENT COMPARABLES MAP

16925 PRAIRIE AVE(SUBJECT)

3422 Maricopa Street

3707 Garnet Street

3711 Artesia Blvd.

Anza Town Homes

2501 W 182nd Street

3850 Redondo Beach Blvd.

18150 Prairie Avenue

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

7

1

2

3

5

6

21

22

AVERAGE RENT - MULTIFAMILY

Avg. $2,217

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

16925Prairie Ave

3711ArtesiaBlvd.

Anza TownHomes

18150PrairieAvenue

2 Bedroom

Avg. $1,798

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

16925Prairie Ave

3422Maricopa

Street

3707 GarnetStreet

3850Redondo

Beach Blvd.

18150PrairieAvenue

1 Bedroom

RENT COMPARABLES


rentpropertyname1


rentpropertyname1


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YEAR BUILT: 1964

rentpropertyname1rentpropertyaddress1

Unit Type Units SF Rent Rent/SF

2 Bed 1 Bath 1 $2,047 $0.00

1 Bed 1 Bath 24 $1,685 $0.00

Studio 2 $1,395 $0.00

Total/Avg. 27 $1,677

16925 PRAIRIE AVE16925 Prairie Ave, Torrance, CA, 90504

YEAR BUILT: 1971

1


1 Bdr 1 Bath $1,750

Total/Avg. $1,750

3422 MARICOPA STREET3422 Maricopa Street, Torrance, CA, 90503

2

YEAR BUILT: 1969


1 Bdr 1 Bath $1,815

Total/Avg. $1,815

3707 GARNET STREET3707 Garnet Street, Torrance, CA, 90503

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


24

YEAR BUILT: 1963

3


2 Bdr 1 Bath $2,250

Total/Avg. $2,250

3711 ARTESIA BLVD.3711 Artesia Blvd., Torrance, CA, 90504

YEAR BUILT: 1963

4


2 Bdr 1.5 Bath $2,150

Total/Avg. $2,150

ANZA TOWN HOMES20606 Anza Avenue, Torrance, CA, 90503

5

YEAR BUILT: 1959


2 Bdr 1 Bath 2,150

Total/Avg.

2501 W 182ND STREET2501 W 182nd Street, Torrance, CA, 90504

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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YEAR BUILT: 1969

6


1 Bdr 1 Bath $1,750

Total/Avg. $1,750

3850 REDONDO BEACH BLVD.3850 Redondo Beach Blvd., Torrance, CA, 90504

YEAR BUILT: 1971

7


1 Bdr 1 Bath $1,875

2 Bdr 2 Bath $2,250

Total/Avg. $2,063

18150 PRAIRIE AVENUE18150 Prairie Avenue, Torrance, CA, 90504

RENT COMPARABLES

SOUTH BAY - LONG BEACHThe South Bay-Long Beach area of southwestern Los Angeles County contains 21 miles ofcoastline between Long Beach and El Segundo and includes Los Angeles InternationalAirport, the Port of Los Angeles and the Port of Long Beach. The region boasts apopulation of approximately 1.3 million and is projected to add roughly 9,700 residentsthrough 2023. High home values allow just half of households to afford to own their home,generating a large rental market.

PORT ACTIVITYThe ports of Los Angeles and Long Beach are the two busiest ports in the nation, underpinning employment in the trade, transportation and utilities sector.

EDUCATED LABOR POOLHigh educational attainment supports hiring in the business services and healthcare sectors. Roughly 37 percent of residents age 25 and older hold a bachelor’s degree.

STRATEGIC LOCATIONLos Angeles International Airport and two port facilities provide an ideal location for e-commerce and logistics companies..

METRO HIGHLIGHTS

ECONOMY The area’s economy historically relied on the aerospace industry and defense-

related technologies, including companies such as Boeing, Honeywell Aerospace and Raytheon.

Widespread diversification in recent years has produced a large contingent of professional and business services firms and corporate headquarters. Significant operations are held by American Honda Motor Co., BP, and Mattel.

A growing population base and public healthcare have supported gains in the education and healthcare sector thanks to both public and private employers.

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DEMOGRAPHICS

1.3M2018

POPULATION:

487K2018

HOUSEHOLDS:

38.32018

MEDIAN AGE:

$74,9002018 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:38.0

U.S. Median:$58,8001.9%

Growth2018-2023*:0.7%

Growth2018-2023*:

MARKETING TEAMCreated on October 2019

POPULATION 1 Miles 3 Miles 5 Miles 2023 Projection

Total Population 26,551 201,964 442,767 2018 Estimate

Total Population 26,819 201,309 440,308 2010 Census

Total Population 26,056 194,419 425,875 2000 Census

Total Population 24,953 188,547 416,256 Daytime Population

2018 Estimate 19,446 168,473 517,216HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2023 Projection

Total Households 7,418 64,041 146,897 2018 Estimate

Total Households 7,381 62,923 144,008Average (Mean) Household Size 3.56 3.16 3.00

2010 CensusTotal Households 7,110 60,155 137,969

2000 CensusTotal Households 6,909 58,552 134,570

Growth 2015-2020 0.50% 1.78% 2.01%HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units

2023 Projection 7,418 64,041 146,8972018 Estimate 7,676 64,214 147,476Owner Occupied 3,419 33,981 76,057Renter Occupied 3,962 28,942 67,952Vacant 295 1,290 3,467

Persons In Units2018 Estimate Total Occupied Units 7,381 62,923 144,0081 Person Units 16.27% 20.70% 22.62%2 Person Units 20.38% 24.54% 26.23%3 Person Units 16.79% 17.04% 17.00%4 Person Units 16.95% 16.06% 15.62%5 Person Units 13.43% 10.25% 9.05%6+ Person Units 16.19% 11.40% 9.47%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2018 Estimate

$200,000 or More 2.65% 5.54% 7.69%$150,000 - $199,000 4.06% 6.71% 7.32%$100,000 - $149,000 12.02% 16.80% 16.83%$75,000 - $99,999 12.78% 13.62% 13.17%$50,000 - $74,999 18.52% 18.11% 17.01%$35,000 - $49,999 15.60% 11.92% 10.97%$25,000 - $34,999 11.22% 9.04% 8.44%$15,000 - $24,999 11.57% 9.26% 9.13%Under $15,000 11.57% 9.01% 9.45%

Average Household Income $67,675 $88,267 $96,874Median Household Income $50,045 $65,041 $67,586Per Capita Income $18,748 $27,808 $31,960POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2018 Estimate Total Population 26,819 201,309 440,308Under 20 30.82% 25.70% 25.22%20 to 34 Years 24.61% 21.22% 20.26%35 to 39 Years 7.02% 6.43% 6.34%40 to 49 Years 12.57% 13.29% 13.62%50 to 64 Years 15.62% 19.19% 19.67%Age 65+ 9.37% 14.17% 14.87%Median Age 31.31 37.37 38.56

Population 25+ by Education Level2018 Estimate Population Age 25+ 16,307 135,469 300,025Elementary (0-8) 17.09% 10.35% 8.42%Some High School (9-11) 14.79% 10.59% 9.35%High School Graduate (12) 25.51% 22.66% 21.60%Some College (13-15) 20.87% 20.93% 20.95%Associate Degree Only 6.02% 7.98% 8.09%Bachelors Degree Only 8.79% 17.85% 19.63%Graduate Degree 3.02% 6.50% 9.06%

Population by Gender2018 Estimate Total Population 26,819 201,309 440,308Male Population 49.65% 49.11% 49.00%Female Population 50.35% 50.89% 51.00%

IncomeIn 2018, the median household income for your selected geography is$50,045, compare this to the US average which is currently $58,754.The median household income for your area has changed by 49.98%since 2000. It is estimated that the median household income in yourarea will be $58,915 five years from now, which represents a changeof 17.72% from the current year.

The current year per capita income in your area is $18,748, comparethis to the US average, which is $32,356. The current year averagehousehold income in your area is $67,675, compare this to the USaverage which is $84,609.

PopulationIn 2018, the population in your selected geography is 26,819. Thepopulation has changed by 7.48% since 2000. It is estimated that thepopulation in your area will be 26,551.00 five years from now, whichrepresents a change of -1.00% from the current year. The currentpopulation is 49.65% male and 50.35% female. The median age of thepopulation in your area is 31.31, compare this to the US averagewhich is 37.95. The population density in your area is 8,535.90 peopleper square mile.

HouseholdsThere are currently 7,381 households in your selected geography. Thenumber of households has changed by 6.83% since 2000. It isestimated that the number of households in your area will be 7,418five years from now, which represents a change of 0.50% from thecurrent year. The average household size in your area is 3.56persons.

EmploymentIn 2018, there are 4,608 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that42.92% of employees are employed in white-collar occupations in thisgeography, and 57.44% are employed in blue-collar occupations. In2018, unemployment in this area is 7.58%. In 2000, the average timetraveled to work was 28.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:41.86% White, 6.58% Black, 1.01% Native American and 6.80%Asian/Pacific Islander. Compare these to US averages which are:70.20% White, 12.89% Black, 0.19% Native American and 5.59%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 78.50% of the current yearpopulation in your selected area. Compare this to the US average of18.01%.

HousingThe median housing value in your area was $377,337 in 2018,compare this to the US average of $201,842. In 2000, there were3,068 owner occupied housing units in your area and there were 3,841renter occupied housing units in your area. The median rent at thetime was $561.

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16925 PRAIRIE AVE

DEMOGRAPHICS

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