MARKETING PACKAGE
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
1102 ARAPAHOE ST
MARKETING PACKAGE TABLE OF CONTENTS 01
The Offering
02 Property Overview 03 Location Overview CONTACT INFORMATION
tyler chung Associate (424) 325-2632
will james Director (424) 325-2610
tom jonsson Director (424) 325-2621
02
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
SECTION ONE
THE OFFERING
03
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
THE OFFERING
TRANSACTION DETAILS
$1,295,000 Price
$1,295,000
Lot Size
7,276 SF
Rentable Square Feet
3,056 SF
TOC Zoning APN Current Use
Tier 3 R3-1 5076-014-001 Single-Family Residence
THE OFFERING The current opportunity is to develop approximately 16 apartment units under Los Angeles’s new Transit Oriented Communities (TOC). This measure requires the City Planning to create incentives for all housing developments located within a one-half miles radius of a major transit stop. Due to the proximity to the Olympic and Hoover Metro stop, this development qualifies for TOC Tier 3. Density Bonus incentives include an additional 22 feet in height and 50% increase in FAR, 70% increase in the number of buildable units, a decrease in setbacks and open space requirements, along with a reduction in parking now only requiring 0.5 spaces per unit. This 7,276 square foot lot will be delivered vacant. This offering is located in a thriving location that’s been going through major developments, presenting a rare opportunity for developers looking to establish a new boutique luxury apartment in Koreatown.
04
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
SECTION TWO
PROPERTY OVERVIEW
05
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
PROPERTY OVERVIEW
DETAILS
Street Address City State Zip Code APN Zoning TOC Existing
06
1102 Arapahoe St Los Angeles
Retable Sq. Ft.
3,056 SF
Council District
CD 1 - Gilvert Cedillo
Lot Size
7,276 SF
Historic Review
No
CA
Exisiting Buildings
1
Specific Plan
90006
Number of Stories
2
Opportunity Zone
5076-014-001 R3-1 Tier 3 Single-Family Residentail
Parking Year Built Lot Dimensions Building Line
None Yes
On-Site 1908 50 x 145 None
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
PROPERTY OVERVIEW
HIGHLIGHTS
INVESTMENT HIGHLIGHTS •
Opportunity Zones offer incentives to developers looking to invest in lowincome communities. This offers three tax incentives through a qualified Opportunity Fund: Temporary Deferral, Step-Up in Basis, and Permanent Exclusion.
•
Transit Score - 71
•
Purple Line Extension Nearby (Whilshire / Vermont)
•
Bus Stop Nearby (Hoover / Olympic)
•
Walk Score - 91
•
Delivered Vacant at Close of Escrow
TIER 3 TOC BONUS •
70% Unit Density Bonus
•
50% Increase in FAR & 22ft. for Two Stories
•
30% Reduction (Two Yards)
•
0.5 Parking Spaces per Unit
•
22 ft. for Two Stories
07
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
PROPERTY OVERVIEW
PLAN VIEw
08
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
PROPERTY OVERVIEW
PLAT MAP
09
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
SECTION THREE
LOCATION OVERVIEW
10
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
ORIENTATION MAP
NEIGHBORHOOD SCALE
11
CITY SCALE
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
OPPORTUNITY ZONES Opportunity Zones are new incentives for investing in low-income communities. Opportunity Zones programs offer three tax incentives through a qualified Opportunity Fund. Temporary Deferral Taxable income for capital gains reinvested into an Opportunity Fund have a temporary deferral. The deferred gain must be recognized on the earlier of the date on which the Opportunity Zone investment is disposed of or December 31, 2026. Step-Up in Basis Basis is increased by 10% if the investment in the Opportunity Fund is help by the taxpayer for at least 5 years. An addition 5% of held for at least 7 years, thereby excluding up to 15% of the original gain from taxation. Permanent Exclusion Permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years. The Opportunity Zones program is designed to incentivize patient capital investments in lowincome communities nationwide.
12
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
TRANSIT
Metro Stops 1.
North Hollywood
2.
Universal City / Studio City
3.
Hollywood / Highland
4.
Hollywood / Vine
5.
Hollywood / Western
6.
Vermont / Sunset
7.
Vermont / Santa Monic
8.
Vermont / Beverly
9.
Wilshire / Western
10.
Wilshire / Normandie
11.
Wilshire / Vermont
12.
Westlake / MacArthur Park
13.
7th St. / Metro Center
14.
Pershing Square
15.
Civic Center / Grand Park
16.
Union Station
13
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
Points of Interest
A STAPLES CENTER
This multi-purpose arena is home to the Los angeles LAKErs & Clippers.
B LOS ANGELES CONVENTION CENTER
THis center hosts multiple annual conventions for all types of trades.
D TCL CHINESE THEATER
This famous movie palace is on the historic hollywood walk of fame.
14
C DODGER STADIUM
Dodger stadium is home to the Major league baseball’s LA Dodgers.
E UNIVERSAL STUDIOS / CITY WALK
This film studio and theme park is located in the san fernando valley.
F THE HOLLYWOOD BOWL
This theater was rated one of the 10 best live music venus in AMerica.
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
HOT SPOTS
15
The Line Hotel A second home for neighbors and travelers seeking a rich, layered experience unlike any other in Los Angeles. Tucked between Hollywood and downtown, the LINE LA is your haven for creative expression and exploration.
Openaire Created in collaboration with two-star Michelin Chef and native Angeleno, Josiah Citrin, Openaire is a poolside oasis of green at the center of the Koreatown. The menu features the best of California’s ingredients from land and sea.
Wiltern Theatre The Wiltern evokes a period of elegance and style simply not found anywhere in today’s modern venues. The entrance is set back among colorful terrazzo paving, and its art deco design contains decorative tile work along with colorful murals.
Kang Ho-dong Baekjeong Kang HoDong Baekjeong is one of Koreatown’s most popular BBQ restaurants. While the meat and banchan are both very good, a meal here is a true test of patience as wait times fall in the two-hour range almost every day of the week.
Chapman Plaza Chapman market and its companion Chapman Park Studio building across Alexandria Avenue were envisioned, along with the since-demolished Chapman Park Hotel, as fashionable anchors of the neighborhood.
Quarters Korean BBQ Quarters might be next door to a serious heavyweight in Kang Ho Dong Baekjeong, but it’s proven to be a serious contender in its own right. Excellent quality meats, a modern-looking space and, full bar.
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
HOT SPOTS
16
Parks BBQ Go to Park’s BBQ for the best Korean barbecue in the heart of K-Town, a bold, but true, claim for the constantly changing neighborhood with more smoke-filled barbecue spots per square mile than some major cities.
Koreatown Plaza Koreatown Plaza comes closest to a centralized, bourgeois shopping district, albeit trapped inside of a distinctively ‘80s mall. The selection skews towards global kids and adult brands. The overall experience is an American mall with Korean flair.
MaDang Courtyard Ma Dang the Couryard, that curiously-designed Koreatown mini-mall on Western Avenue right across for Solair is a three-level shopping and entertainment complex.
Soban Restaurant Soban excels in all things seafood. Order a pan-fried fish or spicy braised black cod, or opt for the spicy beef short ribs. Ask for the special squid tossed with julienne vegetables if they’re available.
Koreatown Galleria The Koreatown Galleria’s bright, airy interior offers an alternative to the sometimes grimy streetscape near Western and Olympic. The mall features apareal, gifts, specialty foods and a supermarket.
Hyesung Noodle House Seoul’s own kalguksu specialist Hyesung has expanded to Los Angeles with a deep commitment to a simple, straightforward knife-cut noodle restaurant with just four menu items.
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
KOREATOWN
Koreatown Koreatown has recently emerged as one of Los Angeles’s most desirable neighborhoods. It’s proximity to Downtown, Hollywood, and the Westside make it attractive for residents and employers alike. Already the densest neighborhood in Los Angeles, Koreatown has seen a tremendous amount of new development along with buzzing retail and entertainment establishments along the Wilshire corridor. The demographics and dynamics of the community have made Koreatown a hotbed for hotels, office, and multifamily. The primary factor driving developers to build in Koreatown is its close proximity to Downtown Los Angeles and its central location near transit. With nearly 1,900 residental units now under construction according to CoStar Market Analytics, sizeable proposals continue to work their way through the entitlement process.
17
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
KOREATOWN
Development Despite covering only about six square miles, densely populated Koreatown has one of the largest apartment inventories in the metro, with about 55,500 units constituting more than 6% of Los Angeles inventory. The neighborhood still has a lot of older buildings that can be torn down and rebuilt, which explains why less than 10% of existing inventory is in the 4 and 5 Star segment despite the recent delivery of several high-end projects. Koreatown continues to flourish with modern architectural design and has been attracting more population to the city. Being the center of entertainment, it has the upside of having all of the conveniences of lifestyle amenities when it comes to the latest foods, desserts, and nightlife. Today’s discerning lifestyle renters seek thoughtfully designed floorplans with luxury finishes coupled with state of the art amenities in walkable urban locations. 1102 Arapahoe St offers the opportunity to capture the imagination of such renters and represents a rare opportunity to develop in one of the highly regarded neighborhoods of Los Angeles.
18
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
AERIAL
19
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
AERIAL
20
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
SUBMARKETS
Koreatown
Downtown Los Angeles
USC
The Koreatown apartment market has been highly liquid for several years. This year’s largest trade was Equity Residential’s August acquisition of the 5 Star, 398-unit Next on Sixth for $189 million, or about $475,000/unit. One of LA County’s largest deliveries when the seller, Century West Partners, finished development in 2017, the asset stabilized in early 2019 and was close to fully leased at the time of sale.
Downtown Los Angeles (DTLA) is the central business district of Los Angeles, California, as well as a widely diverse residential neighborhood of some 58,000 people. Downtown, comprising diverse smaller areas such as Chinatown, Little Tokyo and the Arts District, offers renowned art museums, cuttingedge restaurants & hip bars. It is home of the Staples center where the Lakers, the Clippers and the Kings play every seasosn. It is also the home of the Los Angeles Convention Center where special events take place quarterly. DTLA will also have the opportunity to be home to the 2028 Olympics.
The University of Southern California is a private institution that was founded in 1880. It has a total undergraduate enrollment of 19,907, its setting is urban, and the campus size is 226 acres. It utilizes a semester-based academic calendar. University of Southern California was ranked #22 in the 2020 edition of Best Colleges.
21
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
DEMOGRAPHICS
POPULATION
1-Mile
3-Mile
5-Mile
108,666
662,366
1,319,974
108,154
655,991
1,313,492
103,029
607,429
1,249,863
Growth ‘20 - ‘25
0.47%
0.97%
0.49%
Growth ‘10 - ‘20
4.97%
7.99%
5.09%
1-Mile
3-Mile
5-Mile
2025 Projection
35,609
230,280
462,069
2020 Estimate
35,504
227,811
459,670
2010 Census
34,148
209,643
436,719
Growth ‘20 - ‘25
0.30%
1.08%
0.52%
Growth ‘10 - ‘20
3.97%
8.67%
5.26%
Average Income
$44,229
$64,512
$71,730
Median Income
$33,075
$42,493
$47,882
2025 Projection 2020 Estimate 2010 Census
HOUSEHOLDS
22
1102 ARAPAHOE ST, LOS ANGELES, CA 90006
JAMES CAPITAL ADVISORS, INC.
DISCLAIMER
The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants. A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.
CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.
RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.
NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.
23
www.jamescapitaladvisors.com
@jamescapitaladvisors
FOR INQUIRIES
PLEASE CONTACT CONTACT
tyler chung Associate
(424) 325-2632
tyler@jamescapitaladvisors.com CA RE Lic. 02085199
will james Director
(424) 325-2610
will@jamescapitaladvisors.com CA RE Lic. 01734419
tom jonsson Director
(424) 325-2621
tom@jamescapitaladvisors.com CA RE Lic. 01755842
James Capital Advisors, Inc.
www.jamescapitaladvisors.com
@jamescapitaladvisors