1157 S. Serrano Ave - Los Angeles, CA

1157 S. SERRANO AVE

LOS ANGELES, CA 90006

JAMES CAPITAL ADVISORS

MARKETING PACKAGE

TABLE OF

Contents CONTENTS

SECTION

Property Overview

01

Financial Analysis

02

Location Overview

03

MEET YOUR ADVISORS

WILL JAMES Director (424) 325-2610

TOM JONSSON Director (424) 325-2621

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1157 S. SERRANO AVE, LOS ANGELES, CA 90006

SECTION ONE

PROPERTY OVERVIEW

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1157 S. SERRANO AVE, LOS ANGELES, CA 90006

PROPERTY OVERVIEW

DETAILS

Street Address City State Zip Code APN

Los Angeles CA 90006 5080-013-001

Number of Units Occupancy

8

Flat

Parking

7 Spaces

Number of Buildings

1

Zoning

R4

Number of Stories

2

Unit Mix

Water

Master-Metered

6,334 SF

Electric

Individually Metered

Lot Size

6,213 SF

Gas

Individually Metered

Construction

Wood-Frame Stucco

1964

Roof

100%

Rentable Square Feet

Year Built

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1157 S. Serrano Ave

(1) Bachelor (5) 1 Bed / 1 Bath (2) 2 Bed / 1 Bath

1157 S. SERRANO AVE, LOS ANGELES, CA 90006

PROPERTY OVERVIEW

HIGHLIGHTS Unit Mix

The Subject property comprises of a total of 6,334 rentable square feet and a unit mix consisting of five one-bedroom / one bathroom, two two-bedroom / one bathroom, and one Bachelor unit.

On-Site Parking On-site parking for 5 cars is available at the rear of the property accessible on 12th St. Two additional secured spaces are located on 12th separated from the rear lot for a total of seven parking spaces. This property requires a soft-story parking retrofit.

Upside in Rents The property is subject to Los Angeles City Rent Control. There is approximately 54% upside in rents. A number of units are currently due increase.

Attractive Purchase Financing New financing is available. Please call listing agent for more details.

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1157 S. SERRANO AVE, LOS ANGELES, CA 90006

SECTION TWO

FINANCIAL ANALYSIS

6

1157 S. SERRANO AVE, LOS ANGELES, CA 90006

FINANCIAL ANALYSIS

PRICING ANALYSIS

$1,790,000 Price Price per Unit Price per Square Foot

CURRENT

PRO FORMA

3.03%

6.04%

15.92

10.32

$106,841

$166,730

Expenses

$52,671

$58,660

NOI

$54,170

$108,070

CAP Rate GRM $1,790,000 $223,750 $282.60

Gross Income

This information has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless James Capital Advisors, Inc. 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. 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.

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1157 S. SERRANO AVE, LOS ANGELES, CA 90006

FINANCIAL ANALYSIS

FINANCING

Down Payment

$984,500 (55%)

Loan Amount

$805,500

Interest Rate

3.85%

Amortization / Fixed-Period

30-Year / 5-Year

Term

8

360 Months

CURRENT

PRO FORMA

Debt Service

-$45,315

-$45,315

Pre-Tax Cash Flow

$8,855

Principle Reduction

-$14,558

Total Return

$23,413

(0.90%)

$62,755

(6.37%)

-$14,558 (2.38%)

$77,313

(7.85%)

1157 S. SERRANO AVE, LOS ANGELES, CA 90006

FINANCIAL ANALYSIS

INCOME AND EXPENSE ANNUAL

9

INCOME

CURRENT

PRO FO RMA

Base Rental Income

$112,464

Other Income

ANNUAL

EXPENSE

CURRENT

PRO FORMA

$173,400

Taxes (1.17%)

$20,943

$20,943

-

$2,000

Insurance ($0.65/sq. ft.)

$4,117

$4,117

Gross Potential Income

$112,464

$175,400

Utilities ($85/unit/month)

$8,160

$8,160

Vacancy Allowance

$5,623

Effective Gross Income

$106,841

Operating Expenses

$52,671

Net Operating Income

$54,170

(5%)

(49%)

(5%)

Repairs & Maintenance (6% of EGI) $6,410

$10,004

$166,730

Management Fee (4% of EGI)

$4,274

$6,669

$58,660 (35%)

Gardener ($100/month)

$1,200

$1,200

$108,070

Pest Control ($50/month)

$600

$600

Reserves ($200/Unit)

$1,600

$1,600

Direct Assessments

$1,109

$1,109

Trash (Actual)

$2,758

$2,758

Miscellaneous (Estimated)

$1,500

$1,500

Operating Expenses

$52,671

$58,660

$8,670

1157 S. SERRANO AVE, LOS ANGELES, CA 90006

FINANCIAL ANALYSIS

RENT SCHEDULE

UNIT TYPE

RENT

1

1 Bed / 1 Bath

$1,068.84

$1,800.00

2

1 Bed / 1 Bath

$1,046.73

$1,800.00

3

1 Bed / 1 Bath

$1,390.33

$1,800.00

4

1 Bed / 1 Bath

$1,432.04

$1,800.00

5

1 Bed / 1 Bath

$1,391.13

$1,800.00

6

2 Bed / 1 Bath

$1,077.51

$2,100.00

7

2 Bed / 1 Bath

$965.78

$2,100.00

8

Bachelor

$1,000.00

$1,250.00

$9,372.36

$14,450.00

TOTAL

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PRO FORMA

UNIT #

RENT

1157 S. SERRANO AVE, LOS ANGELES, CA 90006

SECTION THREE

LOCATION OVERVIEW

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1157 S. SERRANO AVE, LOS ANGELES, CA 90006

LOCATION OVERVIEW

koreatown

Access to Shops & Restuarants The Subject property is located two blocks from Wilshire and Olympic Blvd.

Neighborhood attractions include: The Galleria Mall, Numerous popular Korean BBQ restaurants, grocery stores, and multiple corner shopping center servicing everyday needs.

Nearby Transit The Subject Property is located within two blocks of three major thoroughfares; Western Blvd, Olympic Blvd, and Pico Blvd. The nearest Metro Stop is located at Wilshire and Western. Access to the 10 fwy is minutes away.

Development Boom Central Koreatown has seen a recent development boom. Both retail and residential project are breaking ground in all directions of 1157 S. Serrano.

Rental Growth Koreatown has seen a tremendous growth in rental rates over the few years.

Vacancy rates are historically low and the demand for this location is high creating a 55% loss-to-lease.

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1157 S. SERRANO AVE, LOS ANGELES, CA 90006

LOCATION OVERVIEW

DEVELOPMENTS

91-Unit Apartment Building A new residential project could soon be constructed on a long-vacant lot just south of Olympic Boulevard.

Located on Serrano Ave, the project site is on the border of Koreatown and Harvard Heights, about a block from the Koreatown Galleria. Plans filed with the city Friday show the project would include 91 apartments. The structure would include 12 affordable units set aside for very low-income tenants. Other features would include balconies, a rear yard, a 2,362-square-foot gym, 112 parking stalls, and 100 bike rack spaces.

Seven-Story Residential Development The brand new proposed condominium development, slated for the northeast corner of 11th Street and Oxford Avenue, would replace a single-family home, a duplex, and a fourplex with a seven-story building featuring 49 dwelling units and a 105-car garage.

Mixed-Use Complex The residential-retail complex, now rising from a 1.5-acre site at 3060 W. Olympic Boulevard, will consist of a a sevenstory building feature 226 one- and twobedroom apartments. Plans also call for a swimming pool, a fitness center, two rooftop decks and over 16,000 square feet of ground-level commercial space.

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1157 S. SERRANO AVE, LOS ANGELES, CA 90006

PROPERTY OVERVIEW

HOTSPOTS

The Line Hotel

Openaire

Wiltern Theatre

Kang Ho-dong Baekjeong

deco design contains decorative tile work along with colorful murals.

wait times fall in the two-hour range almost every day of the week.

Chapman Plaza

Quarters Korean BBQ

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.

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

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.

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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.

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

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.

1157 S. SERRANO AVE, LOS ANGELES, CA 90006

PROPERTY OVERVIEW

HOTSPOTS

Parks BBQ

Koreatown Plaza

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 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 minimall on Western Avenue right across for Solair is a three-level shopping and entertainment complex.

Walker’s Paradise

1157 South Serrano Avenue has a Walk Score of 91 out of 100. This location is a Walker’s Paradise so daily errands do not require a car.

WALKER’S PARADISE

91

This location is in the Olympic Park neighborhood in Los Angeles. Nearby parks include Ardmore Recreation Center, Normandie Playground and Gramercy Park.

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.

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1157 S. SERRANO AVE, LOS ANGELES, CA 90006

LOCATION OVERVIEW

AERIAL

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1157 S. SERRANO AVE, LOS ANGELES, CA 90006

LOCATION OVERVIEW

AERIAL

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1157 S. SERRANO AVE, LOS ANGELES, CA 90006

LOCATION OVERVIEW

DEMOGRAPHICS

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Population

1-Mile

3-Mile

5-Mile

2024 Projection

85,434

657,602

3,671,782

2019 Estimate

84,686

644,215

3,620,154

2010 Census

83,392

593,072

3,458,314

Growth ‘18 - ‘23

0.88%

2.08%

1.43%

Growth ‘10 - ‘18

1.55%

8.62%

4.68%

Households

1-Mile

3-Mile

5-Mile

2024 Projection

29,211

235,834

1,291,424

2019 Estimate

29,042

230,691

1,272,512

2010 Census

29,076

210,607

1,212,583

Growth ‘18 - ‘23

0.58%

2.23%

1.49%

Growth ‘10 - ‘18

-0.12%

9.54%

4.94%

Average Income

$51,404

$61,734

$80,321

Median Income

$36,279

$38,924

$52,936

1157 S. SERRANO AVE, 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.

FOR INQUIRIES

PLEASE CONTACT

will james

tom jonsson

(424) 325-2610

(424) 325-2621

Director

will@jamescapitaladvisors.com CA RE Lic. 01734419

Director

tom@jamescapitaladvisors.com CA RE Lic. 01755842