2450 Rosemead Blvd ForSale | $1,797,000 South El Monte, CA … · 2019-10-03 · PROPERTY SUMMARY...

James Y. Kuang, DRE# 01906627 Jenny Ngu, DRE# 02007883

(626) 371-5662 | [email protected] [email protected] | (626) 379-1903

2450 Rosemead Blvd

South El Monte, CA 91733ForSale | $1,797,000

INVESTMENT / OWNER-USER OPPORTUNITY

SITE

Property Summary 3

Area Aerials 4

Photos 5

Site Plan 6

Parcel Map 7

Rent Roll 8

Pricing Analysis 9

Market Overview 10

Regional Map 11

Demographics 12

Confidentiality 13

EXCLUSIVELY

LISTED BY

James Y. Kuang, DRE# 01906627

Director of Acquisitions & [email protected](626) 371-5662

Jenny Ngu, DRE# 02007883 Vice President of Community [email protected](626) 379-1903

TABLE OF

CONTENTS

DRE# 01999711 | 410 W. Main St. #220 | Alhambra, CA 91801

PROPERTY

SUMMARY

Offering Summary

2450 Rosemead Blvd, South El Monte, CA 91733



Purchase Price $1,797,000

Current Property Use Industrial

Total Building Size 6,454 SF

Land Area 20,035 SF

Power3 phase | 4 wire

Volts: 120/208 | Amps: 225

Ownership Fee Simple

Year Built / Renovated 1950

Zoning SE-CM

APN 8102-038-003

Investment Highlights

Potential

Redevelop-ment

Cold

StorageUnits

Located in an

Opportunity Zone

Three

Separate Buildings

Busy Traffic

Corridor

Owner Use /

Investment

Ro

sem

ea

d B

lvd

44

,40

7 V

PD

Rush St. 18,218 VPD

Garvey Ave

San Bernardio Fwy



Whittier Narrows Park

Tito’s Market



Restrooms

Offices

Lobby

26’ – 27’

8’ ceiling height

33’ – 40’

10’-6’’ ceiling height

31’ – 39’

10’-6’’ ceiling height

59’ – 18’

9’ ceiling height

Carport

19’ – 19’

Ceiling height

slopes from

11’ to 7’-6’’

Workshop

19’ – 45’

Ceiling height

slopes from

11’ to 7’-6’’

21’ – 39’

10’-6’’

ceiling height

100’

200’

SITE PLAN

PARCEL

MAP



2450 Rosemead BlvdSouth El Monte, CA 91733

KLINGERMAN ST.

RO

SEM

EA

D D

LVD

200

100

RENT

ROLL



CURRENT PRO-FORMA

ANNUAL INCOME

Gross Rental Income $84,000 $98,000

ANNUAL EXPENSES

Insurance ($3,783) ($4,000)

Tax ($13,144) ($20,000)

Total Expenses ($16,927) ($24,000)

NET OPERATING INCOME $67,073 $74,800

PRICING

ANALYSIS

PRO-FORMA SALE PRICE

Price $1,797,000

Loan Principle $980,000

Loan Fee $9,800

Required Equity $817,000

NOI $74,800

Annual Debt Service $59,586

Cash Flow after Debt $15,214

Cap Rate 4.10%

Unleveraged Cash Return 9.15%

Leveraged Cash Return 1.80%

Price per SF $278.43

FINANCING SUMMARY BASED ON LIST PRICE

Loan Type Market

Loan-to-Value Ratio 54.53%

Interest Rate 4.50%

Loan Term 10 years

Amortization Period 30 years

Interest Only Period 0 months

Loan Fee 1.00%



MARKET

OVERVIEW



Extremely low vacancies have been a constant

feature of the South El Monte submarket since

2014—with current vacancies standing at 2.9%.

Annual rent growth stands at 4.1%, a notable

slowdown after years of outsized gains. South El

Monte was once filled with apparel manufacturers

and other labor-intensive goods manufacturers. With

many jobs in these industries now outsourced to

other countries, the most local industrial facilities

have been repurposed for goods distribution.

Logistic properties make up most local inventory, but

as only three industrial properties contain more than

100,000 SF, this is not a major distribution hub.

New development is rare because the submarket

lacks the available land needed for larger, modern

facilities. A 52,000-SF light manufacturing building

that delivered in September 2018 is both the most

recent new construction and the largest building

built in the submarket this cycle. The property leased

rapidly up quickly. While South El Monte prides itself

on small businesses, with more than 2,400 companies

in the city's 3.5 square miles, city management

recently went through a major overhaul and

numerous fee increases pertaining to the planning

department were implemented at the start of 2018.

As of April 2019, there were no new major projects in

the pipeline in the submarket.

Around $30 million in industrial trades take place in

an average year, but trading picked up a bit

recently. Most deals involve properties trading for

less than $2 million as a large proportion of inventory

is lower quality 1 & 2 Star properties. Private buyers

and owner-users make up the bulk of transaction

activity. No deals in excess of $5 million took place

over the first half of 2019.



1 ml radius

2 ml radius

3 ml radius

1 Mile 2 Mile 3 Mile

21,503

21,809

222,392

224,048

604,569

610,400

2019 Estimated Population

2024 Projected Population

5,183

5,267

$453,599

58,507

58,947

$522,172

176,306

178,054

$575,289

2019 Estimated Households

2024 Projected Households

2019 Median Home Value

1,482

11,082

$58,668

7,604

71,728

$67,829

18,964

187,045

$77,708

2019 Estimated Total Businesses

2019 Estimated Total Employees

2019 Estimated Average Household Income

$133,566

$9.971

$8.928

$41,491

$15,667

$34,918

$14,729

$1,597,351

$107,981

$108,208

$469,004

$213,898

$418,570

$184,257

$4,976,059

$316,672

$345,036

$1,413,083

$709,710

$1,298,467

$591,142

2019 Estimated Total Household Expenditures

2019 Estimated Apparel

2019 Estimated Entertainment, Hobbies & Pets

2019 Estimated Food & Alcohol

2019 Estimated Furnishings, Equipment

2019 Estimated Transportation & Maintenance

2019 Estimated Personal Care

PROPERTY

DEMOGRAPHICS



Population

Households/

Housing

Businesses/

Employees

Consumer

Expenditures

The information contained in this Offering Memorandum is confidential, furnished solely for review by a prospective purchaser of the propertylocated at 2450 Rosemead Blvd, South El Monte, CA 91733 (The Property) and is not to be used for any other purpose or made available toany other person without the expressed written consent of Standard Prosperity, or any affiliate, thereof or of the Property Owner. The material

is based in part upon information supplied by Owner, and in part upon information obtained by Standard Prosperity from sources, it deemsreasonably reliable. Summaries of any documents are not intended to be comprehensive or all-inclusive but rather only an outline of someterms and information contained therein. No warranty or representation, expressed or implied, is made by Owner, Standard Prosperity, or anyof their respective affiliates, as to the accuracy or completeness of the information contained herein or any other written or oralcommunication transmitted to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to beapplied in connection with the information or such other communications. Without limiting the generalization of the preceding, the reportshall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in thebusiness or relationship of the Property since the date of preparation of the information. Prospective purchasers should make their projectionsand conclusions without reliance upon the materials contained herein and conduct their independent due diligence, including engineering

and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material locatedat the site.

This Offering Memorandum was prepared by Standard Prosperity and has been reviewed by Owner. It contains select information about theProperty and does not purport to be all-inclusive or to provide all of the information which a prospective purchaser may desire. An

opportunity to inspect the Property will be made available to qualified prospective purchasers. In this Offering Memorandum, certaindocuments and other materials are described in summary form. The summaries do not purport to be complete, nor necessarily, accuratedescriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected toreview all documents independently.

This Offering Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute arecommendation, endorsement or advice as to the value of the Property by Standard Prosperity or the Owner. Each prospective purchaser isto rely on its investigation, evaluation, and judgment as to the advisability of purchasing the Property described herein Standard Prosperityand the Owner expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Propertyor to terminate discussions with any party at any time with or without notice.

Owner shall have no legal commitment or obligation to any interested party reviewing this Offering Memorandum unless a writtenagreement for the purchase of the Property has been fully executed and delivered by the Owner and such party and any conditions toOwner’s obligations thereunder have been satisfied or waived and then only to the extent expressly provided for therein, Standard Prosperityis not authorized to make any representations or agreements on behalf of Owner. This Offering Memorandum is the property of StandardProsperity and may be used only by parties approved by Standard Prosperity and Owner. The Property is privately offered, and by acceptingdelivery of this Offering Memorandum, the party in possession hereof agrees that this Offering Memorandum and its contents are aconfidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied orotherwise reproduced or disclosed to anyone without the prior written authorization of Standard Prosperity and Owner.

The terms and conditions set forth above apply to this Offering Memorandum in its entirety.

Thank you for your consideration.

DRE# 01999711410 W. Main St. #220 | Alhambra, CA 91801

2450 Rosemead Blvd ForSale | $1,797,000 South El Monte, CA … · 2019-10-03 · PROPERTY SUMMARY...

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