Offering Memorandum
6628 Beck Ave. North Hollywood, CA 91606
Offering Memorandum
Table Of Contents
Property Overview...................... 3 Location Overview .................... 5 Sales Comparables .................. 9 Financial Analysis .................... 15
Presented by:
Rosano Partners Los Angeles Office 700 S. Flower St, Suite 2920 Los Angeles, CA 90017 www.RosanoPartners.com
The information contained in the Offering Memorandum is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 2
Property Overview
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 3
Property Overview Property Overview / Financial Summary PRICE
CAP RATE // ACTUAL
$1,150,000
4.25%
PRICE / SF
CAP RATE // PRO FORMA
$248.49
5.80%
PRICE / UNIT
LEASABLE AREA
$191,667
4,628 SF
YEAR BUILT
LOT SIZE
1964
6,747 SF
Property Overview / Investment Highlights // 6 Units - 2 Bed + 1 Bath // Parking includes three garages and three additional uncovered spaces // 100% occupied // Upside in rents currently below market // Laundry facility for additional income
Property Overview / Property Descriptions Rosano Partners is pleased to present the opportunity to acquire a 6 unit two story apartment building in central North Hollywood on Beck Ave between Archwood St and Kittridge St. The subject property is centrally located in the San Fernando Valley, minutes from Burbank Airport, Universal City and the Glendale Galleria.
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 4
Location Overview
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 5
Beck Ave.
Lemp
S
Camellia Ave.
Ave.
Location Overview / Aerial
Kittridge St.
Location Overview / Location Descriptions North Hollywood is a neighborhood in the San Fernando Valley region of the city of Los Angeles. It is home to the NoHo Arts District and the Academy of Television Arts & Sciences, and it has seven public and eight private schools. Situated between the 170, 101, 134 and 5 Freeways providing access to anywhere across the greater Los Angeles area.
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 6
Location Overview / Map
S
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 7
Location Overview / Map
S
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 8
Sales Comparables
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 9
Sales Comparables / Overview S 2 1
4
3
Price / Unit
S
1
2
$191,667
$149,857
$187,500
3
$220,833
4
A
$230,000
$197,047
6628 Beck Ave. North Hollywood, CA 91606
S. No.
Address
Sale Price
Price / Unit
S
6628 Beck Ave.
$1,150,000
$191,667
1
6318 Beck Ave.
$1,049,000
$149,857
2
11549 Sylvan St.
$1,125,000
$187,500
3
11561 Riverside Dr.
$1,325,000
$220,833
4
5525 Case Ave.
$1,150,000
$230,000
Rosano Partners // Offering Memorandum 10
Sales Comparables / 01
6628 Beck Ave. North Hollywood, CA 91606
6318 Beck Ave. North Hollywood, CA 91606 Sale Date
10/17/2014
Sale Price
$1,049,000
Units
7
Year Built
1978
Zoning
R3
Lot SF
8,734
Building SF
8,733
Price/Building SF
$120.12
Price Per Unit
$149,857
Income
-
Total Expenses
-
NOI
-
Unit Mix
7 (1 + 1)
Cap Rate
5.19%
Rosano Partners // Offering Memorandum 11
Sales Comparables / 02
6628 Beck Ave. North Hollywood, CA 91606
11549 Sylvan St. North Hollywood, CA 91606 Sale Date
1/30/2015
Sale Price
$1,125,000
Units
6
Year Built
1956
Zoning
R3
Lot SF
9,287
Building SF
5,381
Price/Building SF
$209.07
Price Per Unit
$187,500
Income
-
Total Expenses
-
NOI
-
Unit Mix
1 (1+1) 5 (2+1)(2+2)
Cap Rate
4.51%
Rosano Partners // Offering Memorandum 12
Sales Comparables / 03
6628 Beck Ave. North Hollywood, CA 91606
11561 Riverside Dr. North Hollywood, CA 91602 Sale Date
10/16/2014
Sale Price
$1,325,000
Units
6
Year Built
1954
Zoning
R3
Lot SF
6,500
Building SF
5,174
Price/Building SF
$256.09
Price Per Unit
$220,833
Income
$83,518
Total Expenses
$14,226
NOI
$69,292
Unit Mix
6 (2+1)
Cap Rate
5.23%
Rosano Partners // Offering Memorandum 13
Sales Comparables / 04
6628 Beck Ave. North Hollywood, CA 91606
5525 Case Ave. North Hollywood, CA 91601 Sale Date
8/04/2014
Sale Price
$1,150,000
Units
5
Year Built
1961
Zoning
R4
Lot SF
8,701
Building SF
3,534
Price/Building SF
$325.41
Price Per Unit
$230,000
Income
-
Total Expenses
-
NOI
-
Unit Mix
-
Cap Rate
-
Rosano Partners // Offering Memorandum 14
Financial Analysis
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 15
Financial Analysis 6628 Beck Avenue North Hollywood, California, 91606
Financial Analysis / Setup Pricing Summary
Annualized Operating Data
Offering Price:
$1,150,000
Down Payment:
30%
$345,000
Gross Potential Rent Other income
Number of Units:
6
Price/Unit:
$191,667
Gross Potential Income:
$2,000 $93,800
$739
$90,986
$24,279
$24,279
4.25%
Less Expenses: Net Operating Income:
Current GRM:
15.57
Debt Service
Pro Forma GRM:
12.53
Cash Flow After Debt Service/ CoC Return
$170.42
$0 $73,860 $73,121
5.80%
Price / Land sq/ft:
$91,800
Less: Vacancy Allowance
Current Cap:
$248.49
Pro Forma
Effective Gross Incomes Pro Forma Cap:
Price / Bldg sq/ft:
Current $73,860
$48,843
$2,814
66.8%
*
$66,707
($43,378) $22,425
Total Return Before Taxes:
$27,890
* As a percent of Effective Gross Income.
3%
73.3% *
($43,378)
$5,465
Principal Reduction
NOTES:
1.00%
1.6%
$23,329
6.8%
$22,425 8.1%
**
$45,755
13%
**
** As a percent of Down Payment.
Property Description Leasable Area (sq/ft):
4,628
Lot Size (sq/ft):
6,748
Year Built:
1964
Financing Loan Amount:
$805,000
Amortization:
30
Interest Rate:
3.50%
Monthly Payment:
($3,615)
Yearly Payment:
Annualized Expenses
Unit Mix
GPR % Real Estate Taxes
Current
Pro Forma
1.224%
$14,079
$14,079
Insurance
2.03%
$1,500
$1,500
Water and Trash
3.66%
$2,700
$2,700
Electricity
3.66%
$2,700
$2,700
Gas
2.44%
$1,800
$1,800
Maintenance/Repairs
1.35%
$1,000
$1,000
Miscellaneous
0.00%
$0
$0
Gardner
0.68%
$500
$500
$24,279
$24,279
$0.44
$0.44
($43,378)
Financial Summary:
Total Expenses
The said quote is the most competitive that the capital markets can offer.
Monthly/SF
6628 Beck Ave. North Hollywood, CA 91606
# Units
Unit Type
Current Rents
6
2+1
$954 - $1,070
Market Rents $1,150 - $1,400
This information has been secured from sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify all information.
Rosano Partners // Offering Memorandum 16
Financial Analysis / Rent Roll
Unit #
Unit Type
6628 Beck Avenue North Hollywood, California, 91606 Unit SF
Current Rent
Current Rent/ SF
Market Rent
Market Price/ SF
1
2 BR + 1 BA
771
$1,061
$1.38
$1,275
$1.65
2
2 BR + 1 BA
771
$1,017
$1.32
$1,275
$1.65
3
2 BR + 1 BA
771
$1,070
$1.39
$1,275
$1.65
4
2 BR + 1 BA
771
$1,017
$1.32
$1,275
$1.65
5
2 BR + 1 BA
771
$1,036
$1.34
$1,275
$1.65
6
2 BR + 1 BA
771
$954
$1.24
$1,275
$1.65
4,628
$6,155
$7,650
$9.92
5 Year Pro-Forma Cash Flow & Valuation GROSS POTENTIAL INCOME* Vacany** EFFECTIVE GROSS INCOME Expenses***
Year 1 $93,800 $2,814 $90,986 $24,279
Year 2 $97,552 $2,898 $94,654 $24,522
Year 3 $101,454 $2,985 $98,469 $24,767
Year 4 $105,512 $3,075 $102,437 $25,015
Year 5 $109,733 $3,167 $106,566 $25,265
NET OPERATING INCOME
$66,707
$70,132
$73,702
$77,423
$81,301
$43,378 $28,175 $15,203 $761,622
$43,378 $26,657 $16,721 $746,420
$43,378 $26,125 $17,253 $729,167
$43,378 $25,521 $17,857 $711,914
$43,378 $24,917 $18,461 $693,453
DEBT Annual Debt Service Interest Principal Loan Oustanding
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 17
Financial Analysis / 5 Year Cash Flow Analysis 5 Year Pro-Forma Cash Flow & Valuation GROSS POTENTIAL INCOME* Vacany** EFFECTIVE GROSS INCOME Expenses***
Year 1 $93,800 $2,814 $90,986 $24,279
Year 2 $97,552 $2,898 $94,654 $24,522
Year 3 $101,454 $2,985 $98,469 $24,767
Year 4 $105,512 $3,075 $102,437 $25,015
Year 5 $109,733 $3,167 $106,566 $25,265
NET OPERATING INCOME
$66,707
$70,132
$73,702
$77,423
$81,301
$43,378 $28,175 $15,203 $761,622
$43,378 $26,657 $16,721 $746,420
$43,378 $26,125 $17,253 $729,167
$43,378 $25,521 $17,857 $711,914
$43,378 $24,917 $18,461 $693,453
$23,329
$26,754
$30,324
$34,045
$37,923
5.80% 6.76%
6.10% 7.75%
6.41% 8.79%
6.73% 9.87%
7.07% 10.99%
DEBT Annual Debt Service Interest Principal Loan Oustanding BEFORE TAX CASH FLOW Cap Rate on Purchase Price Return on Investment
ASSUMPTIONS: *Rental Increases **Vacancy Trend ***Variable Expense Increase
4.00% 3.00% 1.00%
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 18
Presented by: Rosano Partners Los Angeles Office 700 S. Flower St, Suite 2920 Los Angeles, CA 90017 www.RosanoPartners.com
The information contained in the Offering Memorandum is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.
Offering Memorandum
Table Of Contents
Property Overview...................... 3 Location Overview .................... 5 Sales Comparables .................. 9 Financial Analysis .................... 15
Presented by:
Rosano Partners Los Angeles Office 700 S. Flower St, Suite 2920 Los Angeles, CA 90017 www.RosanoPartners.com
The information contained in the Offering Memorandum is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 2
Property Overview
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 3
Property Overview Property Overview / Financial Summary PRICE
CAP RATE // ACTUAL
$1,150,000
4.25%
PRICE / SF
CAP RATE // PRO FORMA
$248.49
5.80%
PRICE / UNIT
LEASABLE AREA
$191,667
4,628 SF
YEAR BUILT
LOT SIZE
1964
6,747 SF
Property Overview / Investment Highlights // 6 Units - 2 Bed + 1 Bath // Parking includes three garages and three additional uncovered spaces // 100% occupied // Upside in rents currently below market // Laundry facility for additional income
Property Overview / Property Descriptions Rosano Partners is pleased to present the opportunity to acquire a 6 unit two story apartment building in central North Hollywood on Beck Ave between Archwood St and Kittridge St. The subject property is centrally located in the San Fernando Valley, minutes from Burbank Airport, Universal City and the Glendale Galleria.
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 4
Location Overview
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 5
Beck Ave.
Lemp
S
Camellia Ave.
Ave.
Location Overview / Aerial
Kittridge St.
Location Overview / Location Descriptions North Hollywood is a neighborhood in the San Fernando Valley region of the city of Los Angeles. It is home to the NoHo Arts District and the Academy of Television Arts & Sciences, and it has seven public and eight private schools. Situated between the 170, 101, 134 and 5 Freeways providing access to anywhere across the greater Los Angeles area.
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 6
Location Overview / Map
S
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 7
Location Overview / Map
S
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 8
Sales Comparables
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 9
Sales Comparables / Overview S 2 1
4
3
Price / Unit
S
1
2
$191,667
$149,857
$187,500
3
$220,833
4
A
$230,000
$197,047
6628 Beck Ave. North Hollywood, CA 91606
S. No.
Address
Sale Price
Price / Unit
S
6628 Beck Ave.
$1,150,000
$191,667
1
6318 Beck Ave.
$1,049,000
$149,857
2
11549 Sylvan St.
$1,125,000
$187,500
3
11561 Riverside Dr.
$1,325,000
$220,833
4
5525 Case Ave.
$1,150,000
$230,000
Rosano Partners // Offering Memorandum 10
Sales Comparables / 01
6628 Beck Ave. North Hollywood, CA 91606
6318 Beck Ave. North Hollywood, CA 91606 Sale Date
10/17/2014
Sale Price
$1,049,000
Units
7
Year Built
1978
Zoning
R3
Lot SF
8,734
Building SF
8,733
Price/Building SF
$120.12
Price Per Unit
$149,857
Income
-
Total Expenses
-
NOI
-
Unit Mix
7 (1 + 1)
Cap Rate
5.19%
Rosano Partners // Offering Memorandum 11
Sales Comparables / 02
6628 Beck Ave. North Hollywood, CA 91606
11549 Sylvan St. North Hollywood, CA 91606 Sale Date
1/30/2015
Sale Price
$1,125,000
Units
6
Year Built
1956
Zoning
R3
Lot SF
9,287
Building SF
5,381
Price/Building SF
$209.07
Price Per Unit
$187,500
Income
-
Total Expenses
-
NOI
-
Unit Mix
1 (1+1) 5 (2+1)(2+2)
Cap Rate
4.51%
Rosano Partners // Offering Memorandum 12
Sales Comparables / 03
6628 Beck Ave. North Hollywood, CA 91606
11561 Riverside Dr. North Hollywood, CA 91602 Sale Date
10/16/2014
Sale Price
$1,325,000
Units
6
Year Built
1954
Zoning
R3
Lot SF
6,500
Building SF
5,174
Price/Building SF
$256.09
Price Per Unit
$220,833
Income
$83,518
Total Expenses
$14,226
NOI
$69,292
Unit Mix
6 (2+1)
Cap Rate
5.23%
Rosano Partners // Offering Memorandum 13
Sales Comparables / 04
6628 Beck Ave. North Hollywood, CA 91606
5525 Case Ave. North Hollywood, CA 91601 Sale Date
8/04/2014
Sale Price
$1,150,000
Units
5
Year Built
1961
Zoning
R4
Lot SF
8,701
Building SF
3,534
Price/Building SF
$325.41
Price Per Unit
$230,000
Income
-
Total Expenses
-
NOI
-
Unit Mix
-
Cap Rate
-
Rosano Partners // Offering Memorandum 14
Financial Analysis
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 15
Financial Analysis 6628 Beck Avenue North Hollywood, California, 91606
Financial Analysis / Setup Pricing Summary
Annualized Operating Data
Offering Price:
$1,150,000
Down Payment:
30%
$345,000
Gross Potential Rent Other income
Number of Units:
6
Price/Unit:
$191,667
Gross Potential Income:
$2,000 $93,800
$739
$90,986
$24,279
$24,279
4.25%
Less Expenses: Net Operating Income:
Current GRM:
15.57
Debt Service
Pro Forma GRM:
12.53
Cash Flow After Debt Service/ CoC Return
$170.42
$0 $73,860 $73,121
5.80%
Price / Land sq/ft:
$91,800
Less: Vacancy Allowance
Current Cap:
$248.49
Pro Forma
Effective Gross Incomes Pro Forma Cap:
Price / Bldg sq/ft:
Current $73,860
$48,843
$2,814
66.8%
*
$66,707
($43,378) $22,425
Total Return Before Taxes:
$27,890
* As a percent of Effective Gross Income.
3%
73.3% *
($43,378)
$5,465
Principal Reduction
NOTES:
1.00%
1.6%
$23,329
6.8%
$22,425 8.1%
**
$45,755
13%
**
** As a percent of Down Payment.
Property Description Leasable Area (sq/ft):
4,628
Lot Size (sq/ft):
6,748
Year Built:
1964
Financing Loan Amount:
$805,000
Amortization:
30
Interest Rate:
3.50%
Monthly Payment:
($3,615)
Yearly Payment:
Annualized Expenses
Unit Mix
GPR % Real Estate Taxes
Current
Pro Forma
1.224%
$14,079
$14,079
Insurance
2.03%
$1,500
$1,500
Water and Trash
3.66%
$2,700
$2,700
Electricity
3.66%
$2,700
$2,700
Gas
2.44%
$1,800
$1,800
Maintenance/Repairs
1.35%
$1,000
$1,000
Miscellaneous
0.00%
$0
$0
Gardner
0.68%
$500
$500
$24,279
$24,279
$0.44
$0.44
($43,378)
Financial Summary:
Total Expenses
The said quote is the most competitive that the capital markets can offer.
Monthly/SF
6628 Beck Ave. North Hollywood, CA 91606
# Units
Unit Type
Current Rents
6
2+1
$954 - $1,070
Market Rents $1,150 - $1,400
This information has been secured from sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify all information.
Rosano Partners // Offering Memorandum 16
Financial Analysis / Rent Roll
Unit #
Unit Type
6628 Beck Avenue North Hollywood, California, 91606 Unit SF
Current Rent
Current Rent/ SF
Market Rent
Market Price/ SF
1
2 BR + 1 BA
771
$1,061
$1.38
$1,275
$1.65
2
2 BR + 1 BA
771
$1,017
$1.32
$1,275
$1.65
3
2 BR + 1 BA
771
$1,070
$1.39
$1,275
$1.65
4
2 BR + 1 BA
771
$1,017
$1.32
$1,275
$1.65
5
2 BR + 1 BA
771
$1,036
$1.34
$1,275
$1.65
6
2 BR + 1 BA
771
$954
$1.24
$1,275
$1.65
4,628
$6,155
$7,650
$9.92
5 Year Pro-Forma Cash Flow & Valuation GROSS POTENTIAL INCOME* Vacany** EFFECTIVE GROSS INCOME Expenses***
Year 1 $93,800 $2,814 $90,986 $24,279
Year 2 $97,552 $2,898 $94,654 $24,522
Year 3 $101,454 $2,985 $98,469 $24,767
Year 4 $105,512 $3,075 $102,437 $25,015
Year 5 $109,733 $3,167 $106,566 $25,265
NET OPERATING INCOME
$66,707
$70,132
$73,702
$77,423
$81,301
$43,378 $28,175 $15,203 $761,622
$43,378 $26,657 $16,721 $746,420
$43,378 $26,125 $17,253 $729,167
$43,378 $25,521 $17,857 $711,914
$43,378 $24,917 $18,461 $693,453
DEBT Annual Debt Service Interest Principal Loan Oustanding
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 17
Financial Analysis / 5 Year Cash Flow Analysis 5 Year Pro-Forma Cash Flow & Valuation GROSS POTENTIAL INCOME* Vacany** EFFECTIVE GROSS INCOME Expenses***
Year 1 $93,800 $2,814 $90,986 $24,279
Year 2 $97,552 $2,898 $94,654 $24,522
Year 3 $101,454 $2,985 $98,469 $24,767
Year 4 $105,512 $3,075 $102,437 $25,015
Year 5 $109,733 $3,167 $106,566 $25,265
NET OPERATING INCOME
$66,707
$70,132
$73,702
$77,423
$81,301
$43,378 $28,175 $15,203 $761,622
$43,378 $26,657 $16,721 $746,420
$43,378 $26,125 $17,253 $729,167
$43,378 $25,521 $17,857 $711,914
$43,378 $24,917 $18,461 $693,453
$23,329
$26,754
$30,324
$34,045
$37,923
5.80% 6.76%
6.10% 7.75%
6.41% 8.79%
6.73% 9.87%
7.07% 10.99%
DEBT Annual Debt Service Interest Principal Loan Oustanding BEFORE TAX CASH FLOW Cap Rate on Purchase Price Return on Investment
ASSUMPTIONS: *Rental Increases **Vacancy Trend ***Variable Expense Increase
4.00% 3.00% 1.00%
6628 Beck Ave. North Hollywood, CA 91606
Rosano Partners // Offering Memorandum 18
Presented by: Rosano Partners Los Angeles Office 700 S. Flower St, Suite 2920 Los Angeles, CA 90017 www.RosanoPartners.com
The information contained in the Offering Memorandum is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.
