CORNER LOT 4-UNIT APARTMENT BUILDING IN TORRANCE

Brett Lyon | 310.780.1899 [email protected] CORNER LOT 4-UNIT APARTMENT BUILDING IN TORRANCE

3560 Emerald StTorrance, CA 90503

Corner Lot 4-Unit ApartmentBuilding in Torrance

INVESTMENT SUMMARY

Investment Overview

Regional Map

AREA OVERVIEW

Local Map

City Overview

County Overview

Aerial Map

PROPERTY DESCRIPTION

Property Details

3D Map

FINANCIALS

Offering Summary

Net Income Statment

Rent Roll

Unit Mix

COMPARABLES

Sales Comparable Map

Sales Comparables

Rental Comparable Map

Rental Comparables

On Market Comparable Map

On Market Comparables

EXCLUSIVELY MARKETED BY :

Lyon Stahl Investment Real Estate

Brett Lyon

310.780.1899 [email protected]

Woody Stahl

[email protected]

Corner Lot 4-Unit Apartment Building in Torrance

Investment Summary


The information above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its accuracy.

Investment SummaryPrice $1,750,000Cap Rate 2.28%NOI $39,922.00GRM 24.52Units 4Occupancy 100.00%Building Size 3,600 SFPrice per Square Foot $486.11Land Area 5,652 Sq. FeetOwnership Fee Simple

Investment Highlights(4) 2-Bedroom/1-Bathroom Units●

$437,500/Unit | Upside Rent Potential●

Corner property on large 5,562 Sq. Ft. Lot●

(2) 2-Car Garages in Rear | All Units Separately Metered●

Investment Description

Lyon | Stahl is excited to present this beautiful 4-unit apartment buildinglocated in one of the most desirable areas in Central Torrance. This propertyfeatures an excellent unit mix of all 2-Bedroom/1-Bathroom units, with (2)two-car garages in the rear beneath a large outdoor patio. These units aresurrounded by a well-maintained lawn and verdant shrubbery, whichcontribute to its great curb-appeal. All of the units are separately metered forgas and electricity and have access to a laundry facility on the side of thebuilding. Located down the street from the Del Amo Fashion Center as well asseveral schools, this corner property is in an unbeatable area. This is a perfectinvestment opportunity for anyone looking to maximize cash flow and acquireassets in one of the up-and-coming cities in the South Bay!


Investment Summary



Regional Map


Area Overview



Local Map


Area Overview



Area Overview

County OverviewThe most heavily populated county in the country is Los Angeles County withapproximately 9.9 million people, including about 1 million that live inunincorporated areas of the county. The metropolis - formed by the sixneighboring counties of Los Angeles, Ventura, Kern, San Bernardino,Riverside, and Orange - is home to approximately 19 million residents. LosAngeles County is home to one of the most educated labor pools in thecountry and offers a labor force of more than 4.7 million, of which more than1.5 million are college graduates. Los Angeles County has the largestpopulation of any county in the nation, exceeded only by eight states.According to the United States Conference of Mayors, Los Angeles Countyboasts a GDP among the twenty largest in the world. Los Angeles County’scontinued economic growth, in contrast to other areas of the state and nation,is due to its diversified economy and abundant, well-trained workforce.

Los Angeles County is well located on the Southern Coast of the California,and covers 4,061 square miles, including the San Clemente and SantaCatalina islands. The County is comprised of approximately 88 vibrant anddiverse cities hosting more than 244,000 business establishments— thegreatest concentration in the state. Los Angeles County has a Gross DomesticProduct (GDP) of approximately $446 billion - placing it among the top 20economies in the world. The combined GDP of Los Angeles and its five

surrounding neighboring counties places it in the top 10. California is generallyconsidered to be in the top five.

If Los Angeles County were its own nation, its economy would be the 18thlargest in the world. It is home to more than 244,000 businesses, with moreminority and women owned businesses than any other in the nation and is thenation’s top international trade center and manufacturing center. Los Angelesis recognized worldwide as a leader in entertainment, health sciences,business services, aerospace and international trade. Because the LosAngeles area is so large and diverse, it has something to offer to everyone.While Hollywood and the Los Angeles beach culture are part of our collectiveimage of Los Angeles, the city also has more museums than any other cityand some of the best hotels in the world are located in Los Angeles.

Over the years, Los Angeles County has developed a diverse economic base,supported by a number of Fortune 500 companies with headquarters in thearea, including Hilton Hotels, Walt Disney, Occidental Petroleum, DirecTVGroup, Northrop Grumman, Computer Sciences, KB Home, Health Net, Mattel,and Avery Dennison. Key factors positively impacting the region’s economicposition include increased local media production by the entertainmentindustry and a continuing expansion of import flows. Moreover, growth inaerospace, homeland security and in the private business sector havecontributed positively to the County's economy. Los Angeles' well educatedlabor pool, many universities, wonderful climate, and world class infrastructurewill enable Greater Los Angeles to continue to be a world leader in economicand cultural significance.County Highlights

Los Angeles County is the world’s 18th largest economy.●

Los Angeles part of the "Tech Coast" and is regarded as the of the main●

entrepreneurial regions of the world. It has approximately 200,000 smallbusinesses, which is twice as many small businesses as can be found in anyother region of the United States.If Los Angeles' five county area were a state, it would be the fourth largest in●

the United States.Los Angeles has more than 80 stage theaters and 300 museums, more than●

any other U.S city.


Area Overview



Aerial Map


Property Description



Property DetailsAddress 3560 Emerald St

Torrance, CA90503

Square Footage 3,600 SFLand Area 5,652 Sq. FeetYear Built 1963Assessors Parcel Number 7524-013-018

SiteZoning TORR-MHNumber of Buildings 1Number of Stories 2Parking Garage + Driveway


Financials



Financial

Offering Summary

Price $1,750,000Building Size 3,600 SFOwnership Fee SimpleLand Area 5,652 Sq. FeetNumber of Units 4Number of Stories 2Year Built 1963Parking Garage + DrivewayOccupancy 100.00%

Price per Unit $437,500.00Price per Square Foot $486.11Current CAP Rate 2.28%Pro Forma Cap Rate 4.14%Current GRM 24.52Pro Forma GRM 16.57NOI $39,922Pro Forma NOI $72,435

New/Proposed$1,225,000

$525,000

3.75%

30 Years

Financing Loan TypeLoan Amount Down Payment Interest Rate Amortization Period Annual Payment $68,078


Financials



Net Income Statement

Current AnnualIncome

Proforma AnnualIncome

REVENUES Gross Potential Rent $71,376 $105,600 Less: Vacancy Rate 3,569 5,280

Effective Gross Income $67,807 $100,320

OPERATING EXPENSES Real Estate Taxes 20,084 20,084 Insurance 1,260 1,260 Utilities 3,200 3,200 Landscaping 1,200 1,200 Maintenance 2,141 2,141

TOTAL EXPENSES $27,885 $27,885

NET OPERATING INCOME $39,922 $72,435

Debt Service $68,078 $68,078 NET CASH FLOW AFTER DEBT SERVICE $-28,156 $4,357 Principal Reduction $22,525 $22,525 TOTAL RETURN -1.07% 5.12% Expenses Per SF $7.75 $7.75% of EGR 41.12% 27.80%


Financials



Rent Roll

Unit Information Lease Rental Rates

Unit No Unit TypeApp. SquareFootage

Status Move In DateCurrentMonthly Rent

PSFPro FormaMonthly Rent

PSF Loss to Lease

2 BR 1 BTH - Occupied -- -- ---- $ 1,500.00 - $ 2,200.00 - $ 700.00

2 BR 1 BTH - Occupied -- -- ---- $ 1,798.00 - $ 2,200.00 - $ 402.00

2 BR 1 BTH - Occupied -- -- ---- $ 1,250.00 - $ 2,200.00 - $ 950.00

2 BR 1 BTH - Occupied -- -- ---- $ 1,400.00 - $ 2,200.00 - $ 800.00

4 Units TOTALS 0 Occ:4Vac:0 $5,948.00 $8,800.00 $2,852.00


Financials



Unit Mix

Unit Info Occupancy Square Footage Current Monthly Rent Pro Forma Monthly Rent

Numberof Units

Unit Type Occ Vac % OccAverageUnit SF

Total UnitSF

AVG Low High TotalAVGPSF

AVG TotalAVGPSF

VacancyLoss

4 2 BR 1 BTH 4 0 100% - - $ 1,487 $ 1,250 $ 1,798 $5,948 - $2,200 $8,800 - $0

4 TOTALS 4 0 100.00% 0 SF $5,948 $8,800 $0


Comparables



Sales Comparable Map


Comparables



Sales Comparables

Photos Address

Sale PriceSale DateTotal UnitsPrice Per Unit

Total SF$/SFCAPGRM

Unit MixYear BuiltLand AreaDays on Market

3560 Emerald StTorrance, CA90503

$1,750,000N/A4437,500

3,600 SF$4862.28 %24.52

4 2BR + 1BTH19635,652 SFN/A

-

802 Cota AvTorrance , CA90501

$1,299,00007/27/20164$324,750

2,592 SF$5014.81 %15.80

19276,822 SF

25247 Bigelow RdTorrance , CA90505

$1,295,00007/08/20164$323,750

2,826 SF$4582.55 %21.30

19666,467 SF6

21107 Donora AvTorrance , CA90503

$1,600,00006/06/20174$400,000

3,693 SF$4334.48 %22.30

19616,901 SF10


Comparables



Photos Address


Total SF$/SFCAPGRM


20414 Osage AvTorrance , CA90503

$1,750,00006/27/20174$437,500

4,169 SF$4204.15 %17.89

19646,818 SF39

25246 Bigelow RdTorrance , CA90505

$1,185,00007/27/20164$296,250

2,826 SF$4192.67 %20.15

19666,029 SF29

23823 Audrey AvTorrance , CA90505

$1,745,00009/30/20164$436,250

4,410 SF$3964.04 %15.80

19646,136 SF58

21107 Ladeene AvTorrance , CA90503

$1,660,00007/27/20164$415,000

4,271 SF$3893.71 %17.18

19636,307 SF14

2883 W 235th StTorrance , CA90505

$1,805,00004/11/20174$451,250

4,714 SF$3832.98 %23.50

19646,181 SF1


Comparables



Photos Address


Total SF$/SFCAPGRM


21108 Ladeene AvTorrance , CA90503

$1,625,00008/18/20164$406,250

4,273 SF$3803.01 %20.90

19636,291 SF11

2891 W 235th StTorrance , CA90505

$1,692,00012/16/20164$423,000

4,714 SF$3593.00 %21.04

19646,181 SF6

3943 W 178TH StTorrance , CA90504

$1,253,92508/19/20164$313,481

4,391 SF$2863.70 %16.55

19646,000 SF70

Averages

$1,537,266-4$384,316

3,898 SF$4023.55 %19.31


Comparables



Rental Comparable Map


Comparables



Rental Comparables

Photos AddressDate Surveyed

Total UnitsYear BuiltBldg SFOccupancy

Units Types Avg Unit SF Avg Unit Rent Avg Rent Per SF


419633,600 SF100.00%

2 BR / 1 BTH - $1,487 -

3440 Newton StTorrance, CA9050506/16/2017

119496,602 SF-

2BR /1BTH 980 SF $2,650 $2.70

711 Columbia PlTorrance, CA9050108/11/2017

119253,001 SF-

2BR /1BTH 840 SF $2,600 $3.10

1823 Arlington AvTorrance, CA9050108/01/2017

119136,377 SF-

2BR /1BTH 893 SF $2,295 $2.57


Comparables






25205 Denny Rd # 2Torrance, CA9050504/01/2017

119705,936 SF-

2BR /1BTH 950 SF $1,530 $1.61

3111 Newton StTorrance, CA9050504/27/2017

119615,824 SF-

2BR /1BTH 875 SF $2,350 $2.69

2468 Sonoma StTorrance, CA9050104/30/2017

119273,057 SF-

2BR /1BTH 900 SF $2,300 $2.56

3538 Redondo Beach BlTorrance, CA9050408/08/2017

119766,502 SF-

2BR /1BTH 1,100 SF $2,400 $2.18

20712 Budlong AvTorrance, CA9050204/30/2017

119596,151 SF-

2BR /1BTH 850 SF $1,700 $2.00


Comparables






802 Cota Av # 802Torrance, CA9050103/27/2017

119276,822 SF-

2BR /1BTH 648 SF $1,800 $2.78

705 PINE DRTorrance, CA9050102/28/2017

119496,500 SF-

2BR /1BTH 819 SF $2,200 $2.69

2107 Arlington AvTorrance, CA90501-

119195,101 SF-

2BR /1BTH 1,000 SF $2,200 $2.20

1904 Middlebrook RdTorrance, CA9050105/15/2017

119488,265 SF-

2BR /1BTH 943 SF $2,575 $2.73

Averages 5,845 SF- 900 SF $ 2,217 $ 2.48


Comparables



On Market Comparable Map


Comparables



On Market Comparables

Photos AddressSale PriceTotal UnitsPrice Per Unit

Total SF$/SFCAPGRM

Unit Mix Year BuiltLand Area


$1,750,0004$ 437,500

3,600 SF$4862.28 %24.52

4 2BR + 1BTH19635,652 SF

-

1750 Martina AvTorrance , CA90501

$1,395,0004$348,750

4,072 SF$3432.91 %20.04

19275,599 SF

Averages $1,395,0004$348,750

4,072 SF$3432.91 %20.04

CONFIDENTIALITY AND DISCLAIMER

The information contained in this Offering Memorandum (“Memorandum”) is proprietary and strictly confidential; it is intended to be reviewed only by the party receiving it from Broker and should notbe made available to anyone else without the written consent of Broker. By retention or use of this Memorandum, you agree that its contents are confidential, that you will hold it in the strictestconfidence, and that you will not disclose any of its contents contrary to these terms.

This Memorandum has been prepared to provide summary, unverified information to establish a preliminary level of interest in the subject property (“Property”). The information in this Memorandumhas been obtained from sources Broker believes to be reliable; however, Broker has not conducted sufficient investigation to make any warranty or representation whatsoever including but not limitedto the accuracy or completeness of the information, veracity or accuracy of the information, condition of the Property or its compliance or lack of compliance with applicable governmentalrequirements, developability, suitability or financial performance of the Property, income or expenses for the Property, the size and square footage of the Property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos, the compliance with State or Federal regulations, the physical condition of the improvements thereon, or the financial condition or businessprospects of any tenant or any tenant’s plans or intentions to continue occupancy of the Property. The Memorandum has selected information relating to the Property and does not purport to be an all- inclusive representation regarding the Property or to contain all or part of the information which prospective investors may require to evaluate the purchase of the Property. Additional information andan opportunity to investigate the Property will be made available to interested and qualified prospective purchasers. All information is based on assumptions relating to the general economy, marketconditions, competition and other factors beyond the control of Broker, therefore, all information is subject to material variation. The information contained herein is not a substitute for a thorough duediligence investigation. Interested parties are expected to review all information of whatever nature independently and not rely on the contents of this Memorandum in any manner.

The Property owner (“Owner”) expressly reserves the right, at its sole discretion, to reject any or all offers to purchase the Property, and/or to terminate discussions at any time with or without notice.The Owner shall have no legal commitment or obligation unless and until written agreement(s) have been fully executed, delivered and approved by the Owner and any conditions to the Owner’sobligations therein have been satisfied or waived.

Exclusively Marketed By:

Lyon Stahl Investment Real Estate

Lyon Stahl Brett Lyon

310.425.9838 310.780.1899

[email protected] [email protected]

CORNER LOT 4-UNIT APARTMENT BUILDING IN TORRANCE

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Transcript of CORNER LOT 4-UNIT APARTMENT BUILDING IN TORRANCE