5323 HERMITAGE AVE - LoopNet · 2018. 11. 15. · 5323 HERMITAGE AVE Valley Village, CA ACT ID...
Transcript of 5323 HERMITAGE AVE - LoopNet · 2018. 11. 15. · 5323 HERMITAGE AVE Valley Village, CA ACT ID...
5323 HERMITAGE AVEValley Village, CA 91607
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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 E
Confidentiality 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.
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.
5323 HERMITAGE AVE
Valley Village, CA
ACT ID Z0121302
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TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02
Rent Roll Summary
Rent Roll Detail
Operating Statement
Notes
Pricing Detail
Acquisition Financing
MARKET COMPARABLES 03
Sales Comparables
Rent Comparables
MARKET OVERVIEW 04
Market Analysis
Demographic Analysis
5323 HERMITAGE AVE
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5323 HERMITAGE AVE
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INVESTMENT
OVERVIEW
5323 HERMITAGE AVE
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EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Disney 15,158
Walt Disney Company 9,434
Victory Studio 5,000
Warner Bros Television 5,000
Kaiser Permanente 3,000
Providence Holy Cross 2,930
Andrews International Inc 2,254
Providence St Joseph Med Ctr 2,099
Mann Theaters 2,000
PROVIDENCE HOLY CROSS FOUNDATI
2,000
Universal City Studios Prod 2,000
Homebridge Financial Services 1,700
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2017 Estimate Pop 36,999 297,416 617,623
2010 Census Pop 35,147 281,682 586,995
2017 Estimate HH 17,097 121,227 232,101
2010 Census HH 16,051 113,470 218,509
Median HH Income $58,635 $57,417 $59,515
Per Capita Income $41,985 $37,390 $36,529
Average HH Income $90,517 $91,423 $96,803
UNIT MIX
NUMBEROF UNITS
UNIT TYPEAPPROX.SQUARE FEET
2 1 Bedroom/1 Bathroom
3 2 Bedroom/1 Bathroom
1 3 Bedroom/2 Bathroom
6 Total 4,905
VITAL DATA
Price $1,800,000 CURRENT PRO-FORMA
Down Payment 100% / $1,800,000 CAP Rate 4.13% 5.59%
Loan Type All Cash GRM 14.83 12.24
Price/Unit $300,000Net Operating Income
$74,396 $100,568
Price/SF $366.97Net Cash Flow After Debt Service
4.13% / $74,396 5.59% / $100,568
Number of Units 6 Total Return 4.13% / $74,396 5.59% / $100,568
Rentable Square Feet 4,905
Year Built 1957
Lot Size 0.18 acre(s)
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5323 HERMITAGE AVE
OFFERING SUMMARY
▪ Prime Valley Village Location
▪ Major Upside in Current Rents
▪ Walking Distance to Public Transportation
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to present this six (6) unit apartment building located at 5323 Hermitage Avenue in Valley Village, CA. This investment opportunity is in a
prime location, south of Chandler Blvd, in between Corteen Pl & Bellingham Ave. Valley Village is bordered on the north by North Hollywood, on the east by NoHo Arts
District, on the south by Studio City, and on the west by Sherman Oaks.
This property was built in 1957, and consists of two (2), one bedroom/one bathroom units, three (3) two bedroom/one bathroom units, and one (1) three bedroom/two
bathroom front house unit. This property is situated on a 8,011 SF lot zoned LAR3, and the building is a total of 4,905 SF per public record. This property has parking in
the rear and each unit is separately metered for gas and electric.
With substantial upside in current rents, this property provides an excellent opportunity for an operator to increase rental income through a more aggressive management
style and renovation program. This property is in an excellent location within the San Fernando Valley, and is in close proximity to the Orange Line Busway, Local Colleges,
Public Transportation, and major retail corridor.
INVESTMENT OVERVIEW
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REGIONAL MAP
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LOCAL MAP
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AERIAL PHOTO
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FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
5323 HERMITAGE AVE
RENT ROLL SUMMARY
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FINANCIAL ANALYSIS
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RENT ROLL DETAIL
FINANCIAL ANALYSIS
5323 HERMITAGE AVE
OPERATING STATEMENT
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FINANCIAL ANALYSIS
5323 HERMITAGE AVE
NOTES
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Income:1. Rent: Based on Seller's Rent Roll verbally as of October 2018.2. Total Vacancy: Based on estimated 3% vacancy on current and 3% vacancy allowance.3. Laundry Income: Based on estimated monthly income of $200 pro-forma.
Expenses:1. Real Estate Taxes: Property tax rate of 1.19% based on published 2017-2018 L.A. County Tax Assessor website.2. Insurance: Based on estimated annual expense of $0.40 per buildable SF.3. Utilities: Based on estimated annual expense of $120 per unit per month (includes trash).4. Repairs & Maintenance: Based on estimated annual expense of $650 per unit.5. Landscaping: Based on estimated monthly expense of $100.6. Operating Reserves: Based on estimated annual expense of $250 per unit.7. Off-Site Mgt: Based on estimated annual expense of 4% of the effective gross income.
FINANCIAL ANALYSIS
5323 HERMITAGE AVE
PRICING DETAIL
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MARCUS & MILLICHAP CAPITAL CORPORATION
CAPABILITIES
MMCC—our fully integrated, dedicated financing arm—is committed to
providing superior capital market expertise, precisely managed execution, and
unparalleled access to capital sources providing the most competitive rates and
terms.
We leverage our prominent capital market relationships with commercial banks,
life insurance companies, CMBS, private and public debt/equity funds, Fannie
Mae, Freddie Mac and HUD to provide our clients with the greatest range of
financing options.
Our dedicated, knowledgeable experts understand the challenges of financing
and work tirelessly to resolve all potential issues to the benefit of our clients.
National platform
operating
within the firm’s
brokerage
offices
$5.63 billion
total national
volume in 2017
Access to
more capital
sources than
any other firm
in the industry
Optimum financing solutions
to enhance value
Our ability to enhance
buyer pool by expanding
finance options
Our ability to enhance
seller control
• Through buyer
qualification support
• Our ability to manage buyers
finance expectations
• Ability to monitor and
manage buyer/lender
progress, insuring timely,
predictable closings
• By relying on a world class
set of debt/equity sources
and presenting a tightly
underwritten credit file
WHY MMCC?
Closed 1,707
debt and equity
financings
in 2017
ACQUISITION FINANCING
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MARKET
COMPARABLES
5323 HERMITAGE AVE
SALES COMPARABLES MAP
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5323 HERMITAGE AVE
(SUBJECT)
5301 Vantage Ave
5055 Laurel Canyon Blvd
12207 Chandler Blvd
5451 Hermitage Avenue
12206 Magnolia Blvd
4936 Whitsett Ave
SALES COMPARABLES
1
2
3
4
5
6
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PROPERTY NAME5323 HERMITAGE AVE
SALES COMPARABLES
Avg. 4.02%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5323
Hermitage
Ave
5301
Vantage Ave
5055 Laurel
Canyon Blvd
12207
Chandler
Blvd
5451
Hermitage
Avenue
12206
Magnolia
Blvd
4936
Whitsett
Ave
Average Cap Rate
Avg. 15.88
0.00
1.70
3.40
5.10
6.80
8.50
10.20
11.90
13.60
15.30
17.00
5323
Hermitage
Ave
5301
Vantage Ave
5055 Laurel
Canyon Blvd
12207
Chandler
Blvd
5451
Hermitage
Avenue
12206
Magnolia
Blvd
4936
Whitsett
Ave
Average GRM
SALES COMPARABLES SALES COMPS AVG
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PROPERTY NAME5323 HERMITAGE AVE
SALES COMPARABLES
Avg. $262.43
$0.00
$40.00
$80.00
$120.00
$160.00
$200.00
$240.00
$280.00
$320.00
$360.00
$400.00
5323
Hermitage
Ave
5301
Vantage Ave
5055 Laurel
Canyon Blvd
12207
Chandler
Blvd
5451
Hermitage
Avenue
12206
Magnolia
Blvd
4936
Whitsett
Ave
Average Price Per Square Foot
Avg. $289,630
$0
$40,000
$80,000
$120,000
$160,000
$200,000
$240,000
$280,000
$320,000
$360,000
$400,000
5323
Hermitage
Ave
5301
Vantage Ave
5055 Laurel
Canyon Blvd
12207
Chandler
Blvd
5451
Hermitage
Avenue
12206
Magnolia
Blvd
4936
Whitsett
Ave
Average Price Per Unit
SALES COMPARABLES SALES COMPS AVG
PROPERTY NAME
MARKETING TEAM
5323 HERMITAGE AVE
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
Units Unit Type
Offering Price: $1,800,000 2 1 Bdr 1 Bath
Price/Unit: $300,000 3 2 Bdr 1 Bath
Price/SF: $366.97 1 3 Bdr 2 Bath
CAP Rate: 4.13%
GRM: 14.83
Total No. of Units: 6
Year Built: 1957
Underwriting Criteria
Income $117,727 Expenses $43,331
NOI $74,396 Vacancy ($3,641)
5323 HERMITAGE AVE5323 Hermitage Ave, Valley Village, CA, 91607
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Units Unit Type
Close Of Escrow: 5/4/2018 3 1 Bdr 1 Bath
Sales Price: $1,400,000 3 2 Bdr 1 Bath
Price/Unit: $233,333
Price/SF: $273.92
Total No. of Units: 6
Year Built: 1954
5301 VANTAGE AVE5301 Vantage Ave, Valley Village, CA, 91607
Units Unit Type
Close Of Escrow: 4/24/2018 5 Studio Bath
Days On Market: 64
Sales Price: $1,500,000
Price/Unit: $300,000
Price/SF: $209.61
CAP Rate: 3.93%
GRM: 15.78
Total No. of Units: 5
Year Built: 1952
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NOTES
Unit mix not available per public record. Property was sold with several
vacant units
5055 LAUREL CANYON BLVD5055 Laurel Canyon Blvd, Valley Village, CA, 91607
PROPERTY NAME
MARKETING TEAM
5323 HERMITAGE AVE
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
Units Unit Type
Close Of Escrow: 8/23/2018 8 1 Bdr 1 Bath
Days On Market: 134 2 2 Bdr 2 Bath
Sales Price: $3,040,000
Price/Unit: $304,000
Price/SF: $365.03
CAP Rate: 4.28%
GRM: 15.90
Total No. of Units: 10
Year Built: 1978
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NOTES
Non rent control
12207 CHANDLER BLVD12207 Chandler Blvd, Valley Village, CA, 91607
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Units Unit Type
Close Of Escrow: 7/25/2018 3 1 Bdr Bath
Days On Market: 47 6 2 Bdr Bath
Sales Price: $3,440,000 1 5 Bdr Bath
Price/Unit: $344,000
Price/SF: $183.02
CAP Rate: 3.86%
GRM: 15.96
Total No. of Units: 10
Year Built: 1963
NOTES
At the time of sale, 3 units were delivered vacant. Seller executed a 1031
exchange.
5451 HERMITAGE AVENUE5451 Hermitage Ave, Valley Village, CA, 91607
Units Unit Type
Close Of Escrow: 6/15/2018 3 1 Bdr Bath
Sales Price: $3,120,000 1 1 Bdr Bath
Price/Unit: $312,000 6 2 Bdr Bath
Price/SF: $320.53
CAP Rate: 4.00%
Total No. of Units: 10
Year Built: 1964
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NOTES
Both parties were involved in a 1031 exchange. The property was fully
occupied at time of sale.
12206 MAGNOLIA BLVD12206 Magnolia Blvd, Valley Village, CA, 91607
PROPERTY NAME
MARKETING TEAM
5323 HERMITAGE AVE
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
Units Unit Type
Close Of Escrow: 5/25/2018 9 Studio Bath
Days On Market: 36
Sales Price: $2,200,000
Price/Unit: $244,444
Price/SF: $222.49
Total No. of Units: 9
Year Built: 1963
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NOTES
Unit mix unavailable per public record
4936 WHITSETT AVE4936 Whitsett Ave, Valley Village, CA, 91607
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5323 HERMITAGE AVE
RENT COMPARABLES MAP
5323 HERMITAGE AVE
(SUBJECT)
5307-5313 Vantage Ave
5301 Vantage Ave
5333 Bellingham Avenue
5330 Bellingham Ave
5330 Corteen Pl # Pt8
12410 Chandler Blvd
4
7
8
9
11
20
12
14
15
16
17
13
18
10
4
1
2
3
5
6
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PROPERTY NAME
MARKETING TEAM
5323 HERMITAGE AVE
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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YEAR BUILT: 1961
3
Unit Type Units SF Rent Rent/SF
3 Bdr 2 Bath 1 1,200 $2,975 $2.48
Total/Avg. 1 1,200 $2,975 $2.48
NOTES
Locatd appx. 0.1 mi from the subject property
This 3 bedroom, 2 bath apartment, in a 7 unit building features laminate
flooring, fireplace, and large private yard with fruit trees. Community
laundry.Close to public transportation and shops. Owner is providing one
month's free rent and, at tenant's request, may be willing to do some
minor renovations to the bathrooms prior to move-in.
5333 BELLINGHAM AVENUE5333 Bellingham Ave, Valley Village, CA, 91607
YEAR BUILT: 1950
4
NOTES
2 bedroom/1 bath unit with hardwood floors, gas stove, private 1 car
garage.
Unit Type Units SF Rent Rent/SF
2 Bdr 1 Bath 1 $1,995
Total/Avg. 1 $1,995
5330 BELLINGHAM AVE5330 Bellingham Ave, Valley Village, CA, 91607
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YEAR BUILT: 1963
NOTES
Locatd appx. 0.2 mi from the subject property
Beautiful 2 Bed + 1 Bath Downstairs Apartment - Beautiful 2 Bed + 1 Bath
Downstairs Apartment. Approximately 900 SQFT. Freshly Painted,
Laminate Flooring, Stove/Oven, Granite Counter-tops, Ceiling Fans, A/C, 1
Parking Space, Pet Friendly.
Unit Type Units SF Rent Rent/SF
2 Bdr 1 Bath 1 900 $1,950 $2.17
Total/Avg. 1 900 $1,950 $2.17
5330 CORTEEN PL # PT85330 Corteen Pl, Valley Village, CA, 91607
PROPERTY NAME
MARKETING TEAM
5323 HERMITAGE AVE
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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YEAR BUILT: 1959
6
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 1 $1,750
Total/Avg. 1 $1,750
NOTES
Located appx. 0.3 mi from the subject property
Quiet and cozy 1-bed in great Valley Village location. This newly
remodeled open concept unit features new hardwood floors and carpet,
new paint and more. Unit has a generously sized private balcony and the
complex features a sparkling pool, and covered parking.
12410 CHANDLER BLVD12410 Chandler Blvd, Valley Village, CA, 91607