MARKETING PACKAGE
1240 W. GARDENA BLVD, GARDENA, CA 90247
1240 W. GARDENA BLVD
MARKETING PACKAGE TABLE OF CONTENTS 01
Property Overview
02 Financial Analysis 03 Location Overview CONTACT INFORMATION
John katnik Senior Associate (310) 956-2291
elliot hassAn Senior Director (424) 325-2643
mike hanassab Senior Director (424) 325/2642
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1240 W. GARDENA BLVD, GARDENA, CA 90247
SECTION ONE
PROPERTY OVERVIEW
03
1240 W. GARDENA BLVD, GARDENA, CA 90247
PROPERTY OVERVIEW
DETAILS
Street Address City State Zip Code APN
1240 W. Gardena Blvd Gardena CA 90247 6111-006-007
Number of Units
8
Carport Parking
Number of Buildings
1
Open Parking
Number of Stories
2
Zoning
Water Electric
Individually Metered Individually Metered
Rentable Square Feet
6,714 SF
Gas
Lot Size
9,775 SF
Construction
Year Built
04
1964
Master-Metered
Roof
Unit Mix
8 Covered Carport Spaces 2 Open Spaces C1 (4) 1 Bed / 1 Bath (2) 2 Bed / 1 Bath (2) 2 Bed / 2 Bath
Wood-frame Siding Pitched
1240 W. GARDENA BLVD, GARDENA, CA 90247
PROPERTY OVERVIEW
HIGHLIGHTS
Apartment with Attractive Day 1 Cash Flow The property is operating at a very attractive return on current income. 6 Out of 8 Units Renovated Renovated units feature new flooring, kitchens and bathrooms. Recent Capital Improvements Building features new vinyl windows, copper plumbing and new landscaping. Large Floorplans and Private Balconies The building has a terrific unit mix of 1 and 2 bedroom floorplans and some units feature private balconies. Great Area of South Gardena The property lies south of Redondo Beach Blvd and west of Vermont Ave on Gardena Blvd. Gardena Blvd features great retail and makes the property very walkable. Ample Parking and On-Site Laundry The building features 8 covered carport spaces and 2 open spaces as well as 2 washers and 2 dryers.
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1240 W. GARDENA BLVD, GARDENA, CA 90247
PROPERTY OVERVIEW
UNIT Renovations
06
1240 W. GARDENA BLVD, GARDENA, CA 90247
PROPERTY OVERVIEW
UNIT Renovations
07
1240 W. GARDENA BLVD, GARDENA, CA 90247
PROPERTY OVERVIEW
UNIT Renovations
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1240 W. GARDENA BLVD, GARDENA, CA 90247
SECTION TWO
FINANCIAL ANALYSIS
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1240 W. GARDENA BLVD, GARDENA, CA 90247
FINANCIAL ANALYSIS
PRICING ANALYSIS
$2,095,000 Price Price per Unit Price per Square Foot
CURRENT
PRO FORMA
4.57%
6.04%
14.05
11.49
$146,285
$178,412
Expenses
$50,561
$51,846
NOI
$95,725
$126,566
CAP Rate GRM $2,095,000 $261,875 $312.03
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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1240 W. GARDENA BLVD, GARDENA, CA 90247
FINANCIAL ANALYSIS
FINANCING
Down Payment
$733,250 (35%)
Loan Amount
$1,361,750
Interest Rate
3.75%
Amortization / Fixed Period
30-Year / 5-Year
Term
360 Month
CURRENT
PRO FORMA
Debt Service
-$75,678
-$75,678
Pre-Tax Cash Flow
$20,047
Principle Reduction
-$25,040
Total Return
$45,086
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(2.73%)
$50,888
(6.94%)
-$25,040 (6.15%)
$75,928
(10.35%)
1240 W. GARDENA BLVD, GARDENA, CA 90247
FINANCIAL ANALYSIS
INCOME AND EXPENSE ANNUAL
INCOME
CURRENT
PRO FORMA
Base Rental Income
$149,160
Laundry Income
ANNUAL
EXPENSE
CURRENT
PRO FORMA
$182,280
Taxes (1.16%)
$24,222
$24,222
$1,600
$1,600
Insurance
$2,443
$2,443
Gross Potential Income
$150,760
$183,880
Utilities
$9,876
$9,876
Vacancy Allowance
$4,475
Trash
$3,448
$3,448
Effective Gross Income
$146,285
Repairs/Maintenance
$2,400
$2,400
Operating Expenses
$50,561
Management Fee (4% of EGI)
$5,851
$7,136
Net Operating Income
$95,725
Landscaping
$720
$720
Reserves
$1,600
$1,600
Operating Expenses
$50,561
$51,846
12
(3%)
$5,468
(3%)
$178,412 (35%)
$51,846 $126,566
(29%)
1240 W. GARDENA BLVD, GARDENA, CA 90247
FINANCIAL ANALYSIS
RENT SCHEDULE
PRO FORMA
PRO FORMA
$1.93
$2,200
$2.20
$1,100
$1.57
$1,650
$2.36
700 SF
$1,300
$1.86
$1,650
$2.36
2 Bed / 2 Bath
1,000 SF
$1,795
$1.80
$2,200
$2.20
5
1 Bed / 1 Bath
700 SF
$1,100
$1.57
$1,650
$2.36
6*
1 Bed / 1 Bath
700 SF
$1,495
$2.14
$1,650
$2.36
7*
2 Bed / 1 Bath
950 SF
$1,995
$2.10
$2,095
$2.21
8*
2 Bed / 1 Bath
950 SF
$1,720
$1.81
$2,095
$2.21
6,700 SF
$12,430
UNIT #
UNIT TYPE
SQ. FOOTAGE
RENT
RENT PER SF
1*
2 Bed / 2 Bath
1,000 SF
$1,925
2
1 Bed / 1 Bath
700 SF
3*
1 Bed / 1 Bath
4*
TOTAL
RENT
RENT PER SF
$15,190
* Renovated Units ** Square Footage Estimated
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1240 W. GARDENA BLVD, GARDENA, CA 90247
SECTION THREE
COMPARABLES
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1240 W. GARDENA BLVD, GARDENA, CA 90247
COMPARABLES
SALES COMPARABLES #
ADDRESS
SALE PRICE
# OF UNITS
CAP RATE
GRM
PRICE / UNIT
PRICE / SF
01
1245 W. 166th St, Gardena, CA 90247
$1,350,000
6
3.00%
17.77
$225,000
$267.64
02
15828 S. Denker Ave, Gardena, CA 90247
$2,620,000
10
4.22%
14.33
$262,000
$313.13
03
15127 S. Budlong Ave, Gardena, CA 90247
$3,000,000
12
4.87%
13.40
$250,000
$270.66
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1240 W. GARDENA BLVD, GARDENA, CA 90247
COMPARABLES
SALES COMPARABLES
01
02
Sale
03
Sale
Sale
1245 W. 166th St
15828 S. Denker Ave
15127 S. Budlong Ave
Gardena, CA 90247
Gardena, CA 90247
Gardena, CA 90247
Close of Escrow
5/14/2020
Close of Escrow
6/19/2020
Close of Escrow
12/6/2019
Sold Price
$1,350,000
Sold Price
$2,620,000
Sold Price
$3,000,000
CAP Rate
3.00%
CAP Rate
4.22%
CAP Rate
4.87%
GRM Number of Units Year Built
17.77 6 1987
GRM Number of Units Year Built
14.33 10 1963
GRM Number of Units Year Built
13.40 12 1962
Rentable Square Feet
5,044 SF
Rentable Square Feet
8,367 SF
Rentable Square Feet
11,084 SF
Price per Square Foot
$267.64
Price per Square Foot
$313.13
Price per Square Foot
$270.66
Price per Unit Unit Mix
16
$225,000 (1) Studio / 1 Bath (4) 2 Bed / 1 Bath (1) 3 Bed / 2 Bath
Price per Unit Unit Mix
$262,000 (4) 1 Bed / 1 Bath (5) 2 Bed / 1 Bath (1) 3 Bed / 2 Bath
Price per Unit Unit Mix
$250,000 (4) 1 Bed / 1 Bath (8) 2 Bed / 1.5 Bath
1240 W. GARDENA BLVD, GARDENA, CA 90247
SECTION THREE
LOCATION OVERVIEW
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1240 W. GARDENA BLVD, GARDENA, CA 90247
LOCATION OVERVIEW
The SOUTH BAY
The South Bay The South Bay is a region of the Los Angeles metropolitan area which contains fifteen cities plus portions of the City of Los Angeles. The area is bounded by the Pacific Ocean on the south and west and generally by the City of Los Angeles on the north and east. Its name comes from its location on the south end of the Santa Monica Bay. Major areas of the South Bay include: the beach cities of Manhattan Beach, Hermosa Beach, and Redondo Beach, a popular destination for swimmers, surfers, bodyboarders, and other beachgoers; the Palos Verdes Peninsula, home to the affluent communities of Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, and Rolling Hills Estates; the Los Angeles harbor neighborhoods of San Pedro and Wilmington; and the inland cities of Inglewood, Hawthorne, Gardena, Lawndale, Lomita, and Carson. The South Bay is heavily reliant on the aerospace and automotive industries, and is home to numerous industry headquarters. It has two major transportation hubs on its borders — Los Angeles International Airport and the Ports of Los Angeles and Long Beach and the Pacific Ocean is at its back door. These factors, and its diverse cities, make it economically, geographically and socially unique.
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1240 W. GARDENA BLVD, GARDENA, CA 90247
LOCATION OVERVIEW
GARDEna, CA
Gardena, CA Gardena, California, is a full-service city of 5.9 square miles with a population of over 62,000. The City is known for its rich cultural diversity and beautiful landscaping. Gardena is a familyoriented City with many programs to meet the needs of both the family and single population. Gardena is approximately 20 minutes southwest of Los Angeles, 10 minutes northeast of Redondo Beach and 15 minutes from the Pacific Ocean and is part of the Los Angeles metropolitan area. Located in the heart of the South Bay, along with some of the strongest densities and strong per capita retail sales within the region, it is no wonder that Gardena is known as a quality business environment. Gardena’s foundation was built on the strength of its business industry and continues to thrive under the current leadership. Gardena provides services to its business community in a “unique” hometown atmosphere. Gardena strives to attract high quality businesses that want to grow, be successful and who will partner with the City to create jobs, provide services to its residents, and improve the overall quality of life. Gardena’s retail sector includes plenty of national credit tenants and several nationally recognized manufacturers that produce a wide variety of products. The City is host to one of the largest printing companies in California and home to one of the oldest continuous provider of carbon composites in the United States.
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1240 W. GARDENA BLVD, GARDENA, CA 90247
LOCATION OVERVIEW
MAJOR INDUSTRIES Los Angeles SoFi Stadium SoFi Stadium is an unprecedented and unparalleled sports and entertainment destination being built in Inglewood, CA just 3 miles away from the subject property. Located on the site of the former Hollywood Park racetrack, the stadium is the centerpiece of a 298-acre mixed-use development featuring retail, commercial office space, a hotel, residential units, and outdoor park spaces. Tesla Founded in 2003, the American company specializes in electric automotives, energy storage and solar panel manufacturing. Their design studio is located in Hawthrone, less than 5 miles away from the subject property. This design center serves as a campus for Tesla employees and allows Tesla owners to lounge and charge their cars while they tour the facilities. Space X Alongside Tesla, within less than 5 miles from the subject property lies Space X. Space Exploration Technologies Corp., doing business as SpaceX, is a private American aerospace manufacturer and space transport services company headquartered in Hawthorne, California. It was founded in 2002 by entrepreneur Elon Musk with the goal of reducing space transportation costs and enabling the colonization of Mars.
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1240 W. GARDENA BLVD, GARDENA, CA 90247
LOCATION OVERVIEW
Developments
230-Unit Millennium Hawthorne Apartments The project, located at 12540 Crenshaw Blvd, and less than 4 miles away from the subject property, is being developed by the Dinerstein Cos. Plans call for a pair of five-story buildings containing 230 studio, one-, and two-bedroom apartments, in addition to 3,100 square feet of ground-floor retail space and an above-grade parking garage. A rendering depicts a contemporary mid-rise structure, which will include amenities such as a fitness center, a swimming pool, an outdoor deck, and numerous street-fronting courtyards. Millennium Hawthorne Apartments LA Clippers Arena The Clippers are constructing a new $1.2 billion basketball arena in near proximity to SoFi Stadmiun along with a practice facility, team offices, a medical facility, retail stores, restaurants and parking. The most “striking” feature of the arena will be indoor and outdoor “sky gardens,” landscaped areas for eating and drinking, accessible from every concourse level. The complex will hold a plaza with a concert stage, public basketball courts, and community gathering space. The Clippers say the project would generate $268 million in “economic activity” and $190 million in tax revenue from 2020 to 2045. The 18,000-seat venue is expected to be complete just in time for the 2024-25 season. LA Clippers Arena
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1240 W. GARDENA BLVD, GARDENA, CA 90247
LOCATION OVERVIEW
AERIAL
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1240 W. GARDENA BLVD, GARDENA, CA 90247
LOCATION OVERVIEW
AERIAL
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1240 W. GARDENA BLVD, GARDENA, CA 90247
LOCATION OVERVIEW
WALKABILITY 1.
Albertons 1735 Artesia Blvd, Gardena, CA 90248 1.1 MILES FROM SUBJECT PROPERTY
2. Sam’s Club 1399 Artesia Blvd, Gardena, CA 90248 0.8 MILES FROM SUBJECT PROPERTY
3. Vons 1260 W. Redondo Beach Blvd, Gardena, CA 90247 0.8 MILES FROM SUBJECT PROPERTY
4. Memorial Hospital of Gardena 1145 W. Redondo Beach Blvd, Gardena, CA 90247 1.2 MILES FROM SUBJECT PROPERTY
5. Gardena High School 1301 W. 182nd St, Gardena, CA 90248 1.2 MILES FROM SUBJECT PROPERTY
6. Peary Middle School 1415 W. Gardena Blvd, Gardena, CA 90247 0.3 MILES FROM SUBJECT PROPERTY
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1240 W. GARDENA BLVD, GARDENA, CA 90247
LOCATION OVERVIEW
WALKABILITY
01 ALBERTONS
Albertons is the second-largest supermarket Chain in North America.
02 SAM’S CLUB
Sam’s Club ranks second in sales volume among warehouse clubs.
04 MEMORIAL HOSPITAL OF GARDENA
This hospital has more than 172 beds & offer a full range of diagnostic.
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03 VONS
Vons has been around for 114 years and has more than 325 locations.
05 GARDENA OF HIGH SCHOOL
This high school has more than 1,400 annually enrolled students.
06 PEARY MIDDLE SCHOOL
This middle school was founded in 1956, the third oldest in the LAUSD.
1240 W. GARDENA BLVD, GARDENA, CA 90247
LOCATION OVERVIEW
Points of Interest 1.
The Forum 3900 W. Manchester Blvd, Inglewood, CA 90305 7.8 MILES FROM SUBJECT PROPERTY
2. SoFi Stadium 1000 S. Prairie Ave, Inglewood, CA 90301 6.6 MILES FROM SUBJECT PROPERTY
3. LAX 1 World Way, Los Angeles, CA 90045 11.8 MILES FROM SUBJECT PROPERTY
4. HUSTLER® Casino 1000 W. Redondo Beach Blvd, Gardena, CA 90247 1 MILE FROM SUBJECT PROPERTY
5. Alondra Park 3850 Manhattan Beach Blvd, Lawndale, CA 90260 3.2 MILES FROM SUBJECT PROPERTY
6. Manhattan Beach 2 Manhattan Beach Blvd, Manhattan Beach, CA 90266 7.1 MILES FROM SUBJECT PROPERTY
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1240 W. GARDENA BLVD, GARDENA, CA 90247
LOCATION OVERVIEW
Points of Interest
01 THE FORUM
This indoor arena in Inglewood has the capacity of more than 17,000.
02 SOFI STADIUM
This multi-purpose stadium will be able to seat up to 100,000.
04 HUSTLER® CASINO
This is the go-to Casino with thousands of machines & card games.
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03 LAX
LAX is the world’s fourth busiest and the US’ second busiest airport.
05 ALONDRA PARK
park with a lake & an island where a native-plant garden attracts birds.
06 MANHATTAN BEACH
This beach is along the oceanfront between modern mansions & parks.
1240 W. GARDENA BLVD, GARDENA, CA 90247
LOCATION OVERVIEW
DEMOGRAPHICS
POPULATION
1-Mile
3-Mile
5-Mile
2025 Projection
31,510
204,000
719,099
2020 Estimate
31,391
204,100
721,271
30,064
200,161
716,962
Growth ‘20 - ‘25
0.38%
-0.05%
-0.30%
Growth ‘10 - ‘20
4.41%
1.97%
0.60%
1-Mile
3-Mile
5-Mile
2025 Projection
11,192
65,851
221,338
2020 Estimate
11,152
65,905
222,132
2010 Census
10,705
64,783
221,556
Growth ‘20 - ‘25
0.36%
-0.08%
-0.36%
Growth ‘10 - ‘20
4.18%
1.73%
0.26%
Average Income
$74,218
$82,951
$83,722
Median Income
$54,705
$63,207
$63,414
2010 Census
HOUSEHOLDS
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1240 W. GARDENA BLVD, GARDENA, CA 90247
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.
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www.jamescapitaladvisors.com
@jamescapitaladvisors
JAMES CAPITAL ADVISORS, INC.
THANK YOU FOR YOUR TIME CONTACT
John katnik Senior Associate
(310) 956-2291
john.katnik@jamescapitaladvisors.com CA RE Lic. 02002695
elliot hassan Senior Director
(424) 325-2643
elliot.hassan@jamescapitaladvisors.com CA RE Lic. 01481211
mike hanassab Senior Director
(424) 325/2642
mike.hanassab@jamescapitaladvisors.com CA RE Lic. 01484891
James Capital Advisors, Inc.
www.jamescapitaladvisors.com
@jamescapitaladvisors