1645 Courtney Ave
PRICING & FINANCIAL ANALYSIS
22-Unit Portfolio
PREPARED FOR
Alan P. Cutter
TABLE OF
Contents CONTENTS
SECTION
Location Overview
01
Portfolio Overview
02
1645 Courtney Ave
03
7706 Hollywood Blvd
04
Comparables
05
James Capital Advantage
06
MEET YOUR ADVISORS
ELLIOT HASSAN Senior Director (424) 325-2643
MIKE HANASSAB Senior Director (424) 325-2642
JOHN KATNIK Senior Associate (424) 325-2644
Joseph Lieberman Associate (424) 325-2641
7706 Hollywood Blvd
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
SECTION ONE
LOCATION OVERVIEW
4
22-UNIT PORTFOLIO
Los Angeles, CA 90046
5
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
LOCATION OVERVIEW
HOLLYWOOD
Hollywood, CA No trip to Los Angeles is complete without a visit to Hollywood, the home of movie studios, many of L.A.’s most popular and historic tourist destinations, and its world-famous namesake boulevard. Many stars, past and present, live in neighbouring communities such as Beverly Hills and Bel Air. As the capital of the global entertainment industry, Hollywood is both a state of mind and a very real place. A larger-than-life symbol of the entertainment business, Hollywood beckons tourists with landmarks like the TCL Chinese Theatre and star-studded Walk of Fame. Hollywood sees millions of tourist flood the streets to get a little taste of the Hollywood life. Highlights include Paramount Pictures, historic music venues like the Hollywood Bowl, and Dolby Theatre, home of the Oscars. Scenesters can choose from improv comedy clubs, retro-cool bars and velvetroped nightclubs as well as amazing outdoor adventures. Los Angeles is a trend-setting global metropolis with a fascinating history and a rich cultural heritage. LA’s cultural attractions are second to none, whether it’s the Space Shuttle Endeavour, Walt Disney Concert Hall, the Getty Center or art galleries and urban art.
6
LOCATION OVERVIEW
WEST HOLLYWOOD West Hollywood, CA Founded in 1984 as the 84th city in Los Angeles County, West Hollywood is a young, vibrant community with a colorful and entertaining past. Located in the heart of metropolitan Los Angeles, at 1.9 square miles, West Hollywood is a robust economic and cultural center instilled with idealism and creativity. West Hollywood shares boundaries with the cities of Beverly Hills and Los Angeles. Its history stretches back over 300 years. West Hollywood is at the cultural and geographical heart of the Los Angeles region, surrounded by must-see hotspots in every direction. If you want to experience Southern California, booking a hotel in walkable West Hollywood will give you convenient access to everything and situate you in one of the hottest hubs of L.A. At present, the city has grown to 39,000 residents and remains Los Angeles’ hottest destination for the entertainment industry with its boutique hotels, celebrityowned restaurants, unparalleled nightlife and shopping and world-renowned events like the HBO Emmy Party, Sir Elton John’s Annual Oscar Party, & LA PRIDE. West Hollywood continues to set the standard for progressive, creative individuals on the cutting edge of trends and new ideas, working together as a community in one of the most exciting destinations in the country.
7
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
LOCATION OVERVIEW
Point of Interest A. The Comedy Store
The historic Comedy Store was opened in 1972 and has since gained world renowned fame. The most famous comedians stop by this venue to perform in the 450seat main room located in West Hollywood, CA.
B. TLC Chinese Theatre
TCL Chinese Theatre is a movie palace on the historic Hollywood Walk of Fame. It holds many block buster premiers that attract tourism and famous individuals from all corners of the world. It holds more than 930 movie-goers.
C. The Laugh Factory
8
D. Hollywood Gaba Gallery Wax Museum
The the At worldGabba famousGallery Hollywood displays Wax disciplines—photography, Museum is the most visited attraction street, design, on Hollywood collage Boulevard and fine since art—this 1965. contemporary Each Hollywood gallery sceneis gives a cultural you haven the chance that maintains to be stareclectic among cool the while appealing stars. Take selfies, to dance many. with divas, mingle at an A-list cocktail party.
E. Hollywood Walk of Fame
With about 24 induction ceremonies annually broadcast around the world, the constant reinforcement provided to the public has made the Walk of Fame a top visitor attraction. This cultural monument attracts millions of visitors a year.
F. The Hollywood Roosevelt
Opening its doors in 1979, the World Famous Laugh Factory has been recognized as “the #1 comedy club in the country” by such high-profile
Located along the Hollywood Walk of Fame, this hip, upscale hotel dating from 1927 is across the street from the TCL Chinese Theatre. Chic,
media as USA Today. Comedy’s top stars & upcoming talent shine on its legendary stage.
modern rooms and suites make this hotel one of the best experiences in Hollywood.
LOCATION OVERVIEW
Point of Interest G. El Capitan Theatre
El Capitan Theatre is a fully restored movie palace. The theater and adjacent Hollywood Masonic Temple is owned by The Walt Disney Company and serves as the venue for a majority of the Walt Disney Studios’ film premieres.
J. Wattles Garden Park
This historically significant site features a mansion, community gardens, trails & a stream. It is a perfect walk from the subject property for some daylight sun, a jog in the park or a perfectly filling picnic.
H. Chateau Marmont
Lodging with Old Hollywood glamour, plus a pool, an intimate restaurant & an elegant cocktail bar, the Chateau Marmont is elegant hotel and bar that will give you the maximum Hollywood experience for Locals and visitors.
I. The Hollywood Bowl
This venue in Los Angeles, CA was named one of the 10 best live music venues in America by Rolling Stone magazine in 2018. It can hold more than 17,000 people. This venue has been played by the most famous musicians in the world.
9
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
PROPERTY 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 Monica 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
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PROPERTY OVERVIEW
POINTS OF INTEREST
A
C
L.A. Live
Los Angeles City College
Dodger Stadium
L.A. LIVE is home to the best Downtown Los Angeles attractions that include the Microsoft Theatre & ESPN Studios.
This college in East Hollywood has over 20,000 enrolled students and offers a wide range of degrees & certifications.
Dodger stadium is home to Major League Baseball’s Los Angeles Dodgers. It can hold up to 56,000 people at one time.
D
11
B
E
F
KOREATOWN
Universal Studios / City Walk
Hollywood Bowl
Koreatown’s amenities, restaurants and venues makes for a buzzing place to work, visit and live.
Universal Studios Hollywood is a film studio and theme park in the San Fernando Valley area of Los Angeles.
This amphitheater in Los Angeles, CA was rated one of the 10 best live music venus in America in 2018.
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
LOCATION OVERVIEW
DEVELOPMENTS
8555 Santa Monica Development
The proposed mixed-use complex would rise just west of La Cienega Boulevard, 2 miles from the subject properties and only a 10-minute drive. The project, previously envisioned as featuring 95 apartments above commercial space, has been retooled following its hearing last year before the West Hollywood Planning Commission, when Commissioners were unable to render a decision on the proposed development due to provisions of the City’s zoning code. Soto Capital has since acquired an adjacent property along West Knoll Drive - addressing concerns that the site was not large enough to allow a mixed-use project - allowing for a slightly larger building with 111 apartments. Likewise, the number of on-site affordable housing units proposed has increased from 12 to 19.
7617 Santa Monica Blvd Development
The project, which would rise at 7617 Santa Monica Boulevard, will be less than 1 mile away from the subject property calls for the construction of a four-story building containing 71 apartments, 9,240 square feet of ground-floor retail space, and parking for 177 vehicles. Plans call for a mix of studio, one-, and two-bedroom dwellings, including for 11 to be set aside for very low-income households. The contemporary low-rise structure, designed by Office Untitled, would include open space amenities such as a central courtyard and a rooftop pool deck. Renderings show a sleek exterior featuring corrugated metal panels and fiber reinforced cement. The project’s Sustainable Communities Environmental Assessment anticipates an approximately 30-month construction timeline, beginning in late 2019 and concluding in 2022. LaTerra Development, based out of Century City, has a number of similar mixed-use and multifamily residential buildings under construction in Mar Vista, Downtown, Santa Monica, and Los Feliz.
12
LOCATION OVERVIEW
DEVELOPMENTS
$500-Million Sunset Strip Hotel-Condo
The project, called the Pendry Hotel & Residences West Hollywood, is located at the former site of the House of Blues nightclub at Sunset Boulevard and Olive Drive. This development is less than one mile away from the subject property and only a three minute drive. Co-developers AECOM Capital and Combined Properties are building 40 for-sale residences within the project, with prices starting at $3 million. The Pendry development is being designed by EYRC Architects, with Cuningham Group serving as executive architect. Martin Brudnizki Design Studio is providing interior design services and Lifescape is serving as landscape architect. Plans call for a mix of floor plans ranging from 2,900 to 6,000 square feet, some of which will include private terraces featuring swimming pools, spas, and outdoor kitchens. The condominiums will all have access to communal amenities including a rooftop deck and a fitness center. The hotel component of the project, featuring 149 guest rooms, will have its own array of amenities. Additionally, the project will include a new private music venue, billed as the first new venue in West Hollywood in more than two decades.
Cedars-Sinai Takes 30,000SF at the Pacific Design Center
Cedars-Sinai has leased additional office space at the Pacific Design Center in West Hollywood, according to an announcement earlier this week by Charles Cohen, the property’s owner and developer. This development is only 2.7 miles away from the subject property and less than a 12 minute drive. The new lease, which accounts for approximately 30,000 square feet of space, increases CedarsSinai’s presence at the PDC’s Blue and Green Buildings to more than 100,000 square feet.
13
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
LOCATION OVERVIEW
DEMOGRAPHICS
14
Population
1-Mile
3-Mile
5-Mile
2024 Projection
46,869
281,560
830,963
2019 Estimate
46,260
275,251
818,252
2010 Census
44,475
250,245
776,284
Growth ‘19 - ‘24
1.32%
2.29%
1.55%
Growth ‘10 - ‘19
4.01%
9.99%
5.41%
Households
1-Mile
3-Mile
5-Mile
2024 Projection
27,524
145,279
368,465
2019 Estimate
27,293
142,321
363,231
2010 Census
26,949
131,115
346,971
Growth ‘19 - ‘24
0.85%
2.08%
1.44%
Growth ‘10 - ‘19
1.28%
8.55%
4.69%
Average Income
$93,427
$102,300
$92,996
Median Income
$63,106
$69,111
$60,900
15
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
SECTION TWO
PORTFOLIO OVERVIEW
16
22-UNIT PORTFOLIO
Los Angeles, CA 90046
17
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
PORTFOLIO OVERVIEW
PORTFOLIO SUMMARY
$7,750,000 Number of Units
22 Units
Average CAP Rate
CURRENT
PRO FORMA
4.84%
6.48%
Average Price / Unit
$352,273
Effective Gross Income
$560,189
$692,652
Total Sq. Ft
57,002 SF
Total Expenses
$185,310
$190,610
$374,879
$502,042
Average Price / Sq. Ft
17,580 SF
Total NOI
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.
18
PORTFOLIO OVERVIEW
Portfolio Pricing Analysis
19
ADDRESS
PRICE
# OF UNITS
PRICE / UNIT
SQ. FT.
PRICE / SF
NOI
CAP Rate
GRM
1645 Courtney Ave
$4,250,000
12 Units
$354,167
9,240 SF
$459.96
$224,188
5.28%
12.89
7706 Hollywood Blvd
$3,500,000
10 Units
$350,000
8,340 SF
$419.66
$150,691
4.31%
14.26
TOTALS & AVERAGES
$7,750,000
22 Units
$352,273
17,580 SF
$440.84
$374,879
4.84%
13.48
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
SECTION THREE
1645 Courtney Ave
20
PROPERTY ONE
Los Angeles, CA 90046
21
1645 COURTNEY AVE, LOS ANGELES, CA 90046
PROPERTY OVERVIEW
DETAILS
Street Address City State Zip Code APN
Los Angeles CA 90046 5551-013-009
Number of Units Occupancy
12 Units
Flat
Parking
On-Site
Number of Buildings
2
Zoning
R3
Number of Stories
2
Unit Mix
Water
Master-Metered
9,240 SF
Electric
Individually Metered
Lot Size
9,932 SF
Gas
Individually Metered
Construction
Wood-Frame Stucco
1949
Roof
59%
Rentable Square Feet
Year Built
22
1645 Courtney Ave
(2) Singles (6) 1 Bed / 1 Bath (4) 2 Bed / 1 Bath
FINANCIAL ANALYSIS
PRICING ANALYSIS
$4,250,000 Price
CAP Rate GRM
$4,250,000
Gross Income
Price per Unit
$354,167
Expenses
Price per Square Foot
$459.96
NOI
CURRENT
PRO FORMA
5.28%
6.60%
12.89
10.90
$320,974
$379,500
$96,786
$99,128
$224,188
$280,372
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.
23
1645 COURTNEY AVE, LOS ANGELES, CA 90046
FINANCIAL ANALYSIS
FINANCING
Down Payment
$1,575,000
Loan Amount
$2,925,000
Interest Rate
3.75%
Amortization / Fixed-Period
30 Years / 5 Years
Term
24
360 Months
CURRENT
PRO FORMA
Debt Service
-$162,554
-$162,554
Pre-Tax Cash Flow
$61,635
Principle Reduction
-$53,784
Total Return
$115,419
(4.14%)
$117,818
(7.92%)
-$53,784 (7.76%)
$171,603
(11.54%)
FINANCIAL ANALYSIS
INCOME AND EXPENSE ANNUAL
25
INCOME
CURRENT
PRO FORMA
Base Rental Income
$329,664
Laundry Income
ANNUAL
EXPENSE
CURRENT
PRO FORMA
$390,000
Property Taxes
$46,971
$46,971
$1,200
$1,200
Insurance
$4,620
$4,620
Gross Potential Income
$330,864
$391,200
DWP
$9,000
$9,000
Vacancy Allowance
$9,890
$11,700
Gas
$3,000
$3,000
Effective Gross Income
$320,974
$379,500
Repairs & Maintenance
$6,000
$6,000
Operating Expenses
$96,786
$99,128
Trash
$6,480
$6,480
Net Operating Income
$224,188
$280,372
Management Fee
$12,838
$15,180
Pest Control
$960
$960
Landscaping
$2,400
$2,400
Direct Assessments
$1,517
$1,517
Reserves
$3,000
$3,000
Operating Expenses
$96,786
$99,128
1645 COURTNEY AVE, LOS ANGELES, CA 90046
FINANCIAL ANALYSIS
RENT SCHEDULE
PRO FORMA
PRO FORMA
$3.98
$2,050
$3.98
$2,050
$3.98
$2,050
$3.98
725 SF
$1,749
$2.41
$2,400
$3.31
1 Bed / 1 Bath
725 SF
$1,807
$2.49
$2,400
$3.31
105
1 Bed / 1 Bath
725 SF
$1,807
$2.49
$2,400
$3.31
106
1 Bed / 1 Bath
725 SF
$1,799
$2.48
$2,400
$3.31
107*
1 Bed / 1 Bath
725 SF
$2,400
$3.31
$2,400
$3.31
108
1 Bed / 1 Bath
725 SF
$1,814
$2.49
$2,400
$3.31
109
2 Bed / 1 Bath
975 SF
$2,373
$2.43
$3,500
$3.59
110
2 Bed / 1 Bath
975 SF
$2,373
$2.43
$3,500
$3.59
111*
2 Bed / 1 Bath
975 SF
$3,500
$3.59
$3,500
$3.59
112*
2 Bed / 1 Bath
975 SF
$3,500
$3.59
$3,500
$3.59
9,280 SF**
$27,222
UNIT #
UNIT TYPE
SQ. FOOTAGE
RENT
RENT PER SF
101*
Single
515 SF
$2,050
102*
Single
515 SF
103
1 Bed / 1 Bath
104
TOTAL
*Vacant ** Unit Squre Footage is estimated/ Buyer to Verify
26
RENT
$32,500
RENT PER SF
27
1645 COURTNEY AVE, LOS ANGELES, CA 90046
SECTION FOUR
7706 Hollywood Blvd
28
PROPERTY TWO
Los Angeles, CA 90046
29
7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
PROPERTY OVERVIEW
DETAILS
Street Address City State Zip Code APN
Los Angeles CA 90046 5551-013-001
Number of Units Occupancy
10 Units
Flat
Parking
On-Site
Number of Buildings
1
Zoning
R3
Number of Stories
2
Unit Mix
Water
Master-Metered
8,340 SF
Electric
Individually Metered
Lot Size
10,367 SF
Gas
Individually Metered
Construction
Wood-Frame Stucco
1950
Roof
80%
Rentable Square Feet
Year Built
30
7706 Hollywood Blvd
(8) 1 Bed / 1 Bath (2) 2 Bed / 1 Bath
FINANCIAL ANALYSIS
PRICING ANALYSIS
$3,500,000 Price Price per Unit Price per Square Foot
$3,500,000 $350,000 $419.66
CURRENT
PRO FORMA
CAP Rate
4.31%
6.33%
GRM
14.26
10.88
Gross Income
$239,215
$313,152
Expenses
$88,524
$91,482
NOI
$150,691
$221,670
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.
31
7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
FINANCIAL ANALYSIS
FINANCING
Down Payment
$1,225,000
Loan Amount
$2,275,000
Interest Rate
3.75%
Amortization / Fixed-Period
30 Years / 5 Years
Term
32
360 Months
CURRENT
PRO FORMA
Debt Service
-$126,431
-$126,431
Pre-Tax Cash Flow
$24,260
Principle Reduction
-$41,832
Total Return
$66,092
(1.98%)
$95,239
(7.77%)
-$41,832 (5.40%)
$137,072
(11.19%)
FINANCIAL ANALYSIS
INCOME AND EXPENSE ANNUAL
33
INCOME
CURRENT
PRO FORMA
Base Rental Income
$245,376
Laundry Income
ANNUAL
EXPENSE
CURRENT
PRO FORMA
$321,600
Property Taxes
$46,971
$46,971
$1,200
$1,200
Insurance
$4,170
$4,170
Gross Potential Income
$246,576
$322,800
DWP
$7,800
$7,800
Vacancy Allowance
$7,361
$9,648
Gas
$2,700
$2,700
Effective Gross Income
$239,215
$313,152
Repairs & Maintenance
$5,000
$5,000
Operating Expenses
$88,524
$91,482
Trash
$5,400
$5,400
Net Operating Income
$150,691
$221,670
Management Fee
$9,568
$12,526
Pest Control
$900
$900
Landscaping
$1,800
$1,800
Direct Assessments
$1,715
$1,715
Reserves
$2,500
$2,500
Operating Expenses
$88,524
$91,482
7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
FINANCIAL ANALYSIS
RENT SCHEDULE
PRO FORMA
PRO FORMA
$2.50
$2,400
$3.31
$1,301
$1.79
$2,400
$3.31
725 SF
$1,623
$2.23
$2,400
$3.31
1 Bed / 1 Bath
725 SF
$1,895
$2.61
$2,400
$3.31
105
1 Bed / 1 Bath
725 SF
$1,710
$2.35
$2,400
$3.31
106
1 Bed / 1 Bath
725 SF
$1,854
$2.55
$2,400
$3.31
107*
1 Bed / 1 Bath
725 SF
$1,965
$2.71
$2,400
$3.31
108
1 Bed / 1 Bath
725 SF
$2,400
$3.31
$2,400
$3.31
109
2 Bed / 1 Bath
975 SF
$2,484
$2.54
$3,500
$3.58
110*
2 Bed / 1 Bath
975 SF
$3,500
$3.58
$3,500
$3.58
7,750 SF**
$20,548
UNIT #
UNIT TYPE
SQ. FOOTAGE
RENT
RENT PER SF
101
1 Bed / 1 Bath
725 SF
$1,816
102
1 Bed / 1 Bath
725 SF
103
1 Bed / 1 Bath
104
TOTAL
* Vacant ** Unit Squre Footage is estimated/ Buyer to Verify
34
RENT
$26,200
RENT PER SF
35
7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
SECTION FIVE
COMPARABLES
36
22-UNIT PORTFOLIO
Los Angeles, CA 90046
37
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
COMPARABLES
RENT COMPARABLES
38
#
ADDRESS
UNIT TYPE
RENT
SQ. FOOTAGE
RENT PER SF
1
920 N. Orange Grove Ave, Los Angeles, CA 90046
Studio
$1,750
500 SF
$3.50
2
1153 N. Vista St, Los Angeles, CA 90046
Studio
$1,795
500 SF
$3.59
3
1221 N. Genesee Ave, Los Angeles, CA 90046
1 Bed / 1 Bath
$1,950
625 SF
$3.12
4
1145 N. Ogden Dr, Los Angeles, CA 90046
1 Bed / 1 Bath
$2,225
850 SF
$2.61
5
1001 N. Curson Ave, West Hollywood, CA 90046
1 Bed / 1 Bath
$2,399
725 SF
$3.30
6
7542 Norton Ave, Los Angeles, CA 90046
2 Bed / 1 Bath
$2,375
850 SF
$2.96
7
1320 N. Alta Vista Blvd, Los Angeles, CA 90046
1 Bed / 1 Bath
$2,895
800 SF
$3.62
8
1846 El Cerrito Pl, Los Angeles, CA 90068
Studio
$2,100
500 SF
$4.20
9
1654 N. Stanley Ave, Los Angeles, CA 90046
2 Bed / 1 Bath
$3,200
1,000 SF
$3.20
COMPARABLES
RENT COMPARABLES
39
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
COMPARABLES
RENT COMPARABLES
01
02
oRent Éå í
920 N. Orange Grove Ave
1153 N. Vista St
Los Angeles, CA 90046
oRent Éå í
1221 N. Genesee Avenue
Los Angeles, CA 90046
Los Angeles, CA 90046
Unit Type
Studio
Unit Type
Studio
Unit Type
Monthly Rent
$1,750
Monthly Rent
$1,795
Monthly Rent
$1,950
Square Footage
625 SF
Square Footage Rent per Square Foot Year Built Number of Units
40
03
oRent Éå í
500 SF $3.50 1959 9 Units
Square Footage Rent per Square Foot Year Built Number of Units
500 SF $3.59 1930 8 Units
1 Bed / 1 Bath
Rent per Square Foot
$3.12
Year Built
1962
Number of Units
19 Units
COMPARABLES
RENT COMPARABLES
04
05
oRent Éå í
1145 N. Ogden Dr Los Angeles, CA 90046
Unit Type
7542 Norton Avenue
Unit Type
Unit Type
Los Angeles, CA 90046
1 Bed / 1 Bath
2 Bed / 1 Bath
Monthly Rent
$2,225
Monthly Rent
$2,399
Monthly Rent
$2,375
Square Footage
850 SF
Square Footage
725 SF
Square Footage
850S F
Rent per Square Foot
$2.61
Rent per Square Foot
Year Built
1966
Year Built
Number of Units
41
oRent Éå í
1001 N. Curson Avenue Los Angeles, CA 90046
1 Bed / 1 Bath
06
oRent Éå í
22 Units
Number of Units
$3.30 1958 12 Units
Rent per Square Foot Year Built Number of Units
$2.96 1956 8 Units
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
COMPARABLES
RENT COMPARABLES
07
08
oRent Éå í
oRent Éå í
1320 N. Alta Vista Blvd
1846 El Cerrito Place
Unit Type
Unit Type
Studio
Unit Type
$2,100
Monthly Rent
Los Angeles, CA 90046
1 Bed / 1 Bath $2,895
Monthly Rent
Square Footage
800 SF
Square Footage
Year Built Number of Units
1654 N. Stanley Ave
Los Angeles, CA 90046
Monthly Rent
Rent per Square Foot
42
09
oRent Éå í
$3.62 1939 16 Units
Rent per Square Foot Year Built Number of Units
Los Angeles, CA 90046
500 SF $4.20 1941 36 Units
Square Footage Rent per Square Foot Year Built Number of Units
2 Bed / 1 Bath $3,200 1,000 SF $3.20 1930 9 Units
43
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
COMPARABLES
SALES COMPARABLES
44
#
ADDRESS
SALE PRICE
# OF UNITS
CAP RATE
GRM
PRICE / UNIT
PRICE / SF
01
1233 N. Orange Grove Ave, West Hollywood, CA 90046
$4,300,000
10 Units
4.28%
15.80
$430,000
$570
02
1323 N. Harper Ave, West Hollywood, CA 90046
$4,200,000
10 Units
3.98%
-
$420,000
$454
03
1205 N. Hayworth Ave, West Hollywood, CA 90046
$3,925,000
10 Units
4.18%
16.01
$392,500
$404
04
1837 N. La Brea Ave, Los Angeles, CA 90046
$6,090,000
16 Units
4.25%
15.50
$406,000
$436
05
7631 Norton Ave, West Hollywood, CA 90046
$3,695,000
10 Units
4.11%
15.73
$369,500
$431
COMPARABLES
SALES COMPARABLES
00
1645 Courtney Ave
7706 Hollywood Blvd
Los Angeles, CA 90046
Close of Escrow
Los Angeles, CA 90046
-
Close of Escrow
12/9/2019
List Price
$4,250,000
Sale Price
$3,500,000
Sale Price
$4,300,000
CAP Rate
5.28%
CAP Rate
4.31%
CAP Rate
4.28%
GRM
14.26
GRM
GRM Number of Units Year Built
12.89 12 Units 1949
Number of Units Year Built
10 Units 1950
Number of Units Year Built
15.80 10 Units 1956
Rentable Square Feet
9,240 SF
Rentable Square Feet
8,340 SF
Rentable Square Feet
7,546 SF
Price per Square Foot
$459.96
Price per Square Foot
$419.66
Price per Square Foot
$570
Price per Unit
$354,167
Price per Unit
Unit Mix
45
Close of Escrow
oSale Éå í
1233 N. Orange Grove Ave
Los Angeles, CA 90046
-
01
oSale Éå í Subject
o Éå í Subject
(2) Singles (6) 1 Bed / 1 Bath (4) 2 Bed / Bath
Unit Mix
$350,000 (8) 1 Bed / 1 Bath (2) 2 Bed / 1 Bath
Price per Unit Unit Mix
$430,000 (7) 1 Bed / 1 Bath (3) 2 Bed / 1 Bath
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
COMPARABLES
SALES COMPARABLES
02
03
oSale Éå í Subject
1323 N. Harper Ave
1205 N. Hayworth Ave
Los Angeles, CA 90046
Close of Escrow
Los Angeles, CA 90046
9/20/2019
Close of Escrow
6/12/2019
List Price
$4,200,000
Sale Price
$3,925,000
Sale Price
$6,090,000
CAP Rate
3.98%
CAP Rate
4.18%
CAP Rate
4.25%
GRM
16.01
GRM
GRM Number of Units Year Built
10 Unnits 1951
Number of Units Year Built
10 Units 1954
Number of Units Year Built
15.50 16 Units 1958
Rentable Square Feet
9,260 SF
Rentable Square Feet
9,712 SF
Rentable Square Feet
13,965 SF
Price per Square Foot
$454
Price per Square Foot
$404
Price per Square Foot
$436
Price per Unit Unit Mix
46
Close of Escrow
oSale Éå í
1837 N. La Brea Ave
Los Angeles, CA 90046
5/16/2019
04
oSale Éå í
$420,000 (6) 1 Bed / 1 Bath (4) 2 Bed / 1 Bath
Price per Unit Unit Mix
$392,500 (6) 1 Bed / 1 Bath (4) 2 Bed / 1 Bath
Price per Unit Unit Mix
$406,000 (5) 1 Bed / 1 Bath (11) 2 Bed / 1 Bath
COMPARABLES
SALES COMPARABLES
05
oSale Éå í Subject
7631 Norton Ave Los Angeles, CA 90046
Close of Escrow List Price
$3,695,000
CAP Rate
4.11%
GRM
15.73
Number of Units Year Built
10 Units 1961
Rentable Square Feet
8,583 SF
Price per Square Foot
$431
Price per Unit Unit Mix
47
3/15/2019
$369,500 (6) 1 Bed / 1 Bath (4) 2 Bed / 1 Bath
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
SECTION SIX
JAMES CAPITAL ADVANTAGE
48
22-UNIT PORTFOLIO
Los Angeles, CA 90046
49
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
JAMES CAPITAL ADVISORS
JAMES CAPITAL ADVANTAGE 50
WHO WE ARE OUR BACKGROUND James Capital Advisors, Inc. (JCA) is a commercial real estate brokerage firm that specializes in net lease and multifamily investment sales throughout the U.S. Originally founded by Mike James as “The James Group” in 2012, the firm rebranded to “James Capital Advisors” in 2018 and set out to develop the next generation of real estate brokerage services. In the 18 months that followed, the firm experienced 400% growth and established a new flagship office in Los Angeles, CA. James Capital Advisors operates on a transparency-driven shared client management platform. This allows us to avoid duplicate agent outreach, and ensures that we provide our clients with a singular advisor-client experience. Every agent in our firm specializes in either net lease, multifamily. The firm’s dedicated focus on net lease and multifamily stems from the synergy between the two product types. With California multifamily exchange clients accounting for a significant portion of the net lease buyer pool, our Los Angeles-based team is uniquely positioned to leverage California capital.
OUR MISSION Provide a first class commercial real estate experience through collaboration, transparency and innovation.
OUR CORE VALUES Collaboration Transparency Growth Innovation
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1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
WHAT WE DO NET LEASE With fluctuating operating costs and rising e-commerce competition, net lease investors need an expert to identify a strategic approach hand-tailored to their investment portfolio. Our net lease experts deliver two facets of specialization; tenant/brand and locational expertise. By taking ownership of a dedicated territory, our agents are able to keep their finger on the pulse of the market and provide actionable insights. With a deep understanding of demographic trends, transitioning locality, exposure and accessibility, we deliver an unrivaled competitive edge. Niche Expertise When it comes to national net lease investments, it is essential for property owners to partner with a singular advisor who is most adept with their respective market. Our expert advisors not only specialize in net lease transactions, but also within their dedicated territory. As a result, investors benefit from boots-on-the-ground market expertise combined with the nation’s leading investment sales team.
MULTIFAMILY James Capital’s multifamily division focuses on transactions between $1 million and $30 million in Southern California. Each broker specializes in a devoted submarket to provide clients with the highest level of expertise, and an unrivaled understanding of their dedicated zip code. NET LEASE
With new ordinances and regulations constantly introduced in Los Angeles, investors need to be supported by a specialist who understands all aspects of the multifamily market. While each agent focuses on a core market, our collaborative approach allows advisors to leverage each other’s relationships and experiences, ensuring the best outcome for our clients. Our undivided attention in the greater Los Angeles multifamily real estate market, backed by the national inventory of our net lease division uniquely positions James Capital to create optimal opportunities for our clients.
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WHAT WE DO CORPORATE REAL ESTATE James Capital’s corporate real estate division provides creative solutions to public and private corporations, investment banks, private equity firms and independent sponsors. Services • M&A Real Estate Advisory and Execution
• Financing and Debt Sourcing
• Valuation and Portfolio Advisory
• Catch & Release Real Estate Optimization
• Portfolio Sale-Leaseback Structuring & Execution
• Real Estate Tax Advisory
• Private Markets Sale-Leaseback Structuring and Execution (Individual Property Sales)
TRACK RECORD As a market leader, James Capital Advisors has sold over $5 Billion in value of real estate between Multifamily and Net Lease properties nationwide. Our specialized expertise, platform, and team of purpose-driven advisors guide us in our mission to disrupt the industry, and prove our staying power.
$6 B 3,000 60+ $6 B
TRANSACTION VOLUME
53
3,000+ Properties SOLD
60+
Investment Professionals
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
MULTIFAMILY
SPECIALIZATION James Capital’s multifamily division focuses on transactions between $1 million and $30 million in Southern California. Each broker specializes in a devoted submarket to provide clients with the highest level of expertise, and an unrivaled understanding of their dedicated zip code. With new ordinances and regulations constantly introduced in Los Angeles, investors need to be supported by a specialist who understands all aspects of the multifamily market. While each agent focuses on a core market, our collaborative approach allows advisors to leverage each other’s relationships and experiences, ensuring the best outcome for our clients. Our undivided attention in the greater Los Angeles multifamily real estate market, backed by the national inventory of our net lease division uniquely positions James Capital to create optimal opportunities for our clients.
Niche Expertise When it comes to the Los Angeles multifamily market, investors deserve an advisory team with extensive knowledge of each specific submarket. Our agent’s hyper-focus within their dedicated zip codes ensure that our clients receive the best possible service and execution every step of the way. Mid-Market Minded We deliver results for institutions, developers, family-owned and private capital investors. Exclusive Exchange Inventory The synergy between our net lease and multifamily divisions open the door to exclusive exchange opportunities for our clients. Considering an exchange? Click here to fill out a brief survey and one of our advisors will reach out to start the process.
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MEET OUR
SENIOR LEADERSHIP Mike James
Founder, Managing Director As Founding Member and Managing Director of James Capital Advisors, Mike guides the company in its vision, dedication, work culture, and commitment to success. In his role as Managing Partner and head of the corporate M&A real estate department, he oversees and evaluates all major corporate decisions and institutional accounts. Mike boasts an undeniable track record of success in managing large portfolio saleleaseback transactions. A graduate of the Argyros School of Business and Economics, he shares his expertise with his clients, advising them on matters great and small in the world of commercial real estate mergers and acquisitions. (424) 325-2601 mike@jamescapitaladvisors.com CA RE Lic. 01869890
Wayne Vance Chief Financial Officer
Wayne Vance is JCA’s chief financial officer reporting to CEO Nate Barnes. As CFO, Wayne oversees the accounting, financial planning and analysis, internal audit and tax functions at JCA. Wayne joined James Capital in 2019 and has worked closely with JCA’s senior leadership since his arrival. Wayne has nearly two decades of experince within various industries and a passion for working with high-paced, high-growth companies. He began his career in Silicon Valley as an auditor, growing a start up from $8M to $350M in revenue and 35 to 1,200 employees globally within 6 years. (424) 325-2600 info@jamescapitaladvisors.com
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Nate Barnes
Chief Executive Officer As James Capital Advisors CEO, Nate manages the corporate direction and strategy of the company. His responsibilities include sales and marketing leadership, business development strategy, and financial and operational oversight. With degrees in both finance and real estate from California State University, Northridge, Nate’s astute grasp on the real estate market was pivotal in the early expansion and growth of James Capital Advisors. Before signing on with James Capital Advisors, Nate served as the managing partner for Los Angeles-based regional franchise LA Tasty Food, LLC, operating popular brands like El Pollo Loco, Carl’s Jr, and Sbarro. (424) 325-2603 nate@jamescapitaladvisors.com CA RE Lic. 01908103
Mark Richardson Owner, Vice Chairman
An American businessman, real estate expert, and former co-owner of the Carolina Panthers, Mark is a part owner and Vice Chairman of James Capital Advisors and an integral part of the company’s breakaway success. Graduating from Clemson University in 1987, he went on to receive his Master’s of Business Administration from the University of Virginia in 1987 and in 2013 was named a lifetime trustee of Clemson University. Mark is also a shrewd franchise investor, with more than 50 Bojangles’ Famous Chicken ‘n Biscuits restaurants under his proprietorship across the U.S. (424) 325-2600 info@jamescapitaladvisors.com
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
JAMES CAPITAL ADVANTAGE
EQUITY SPONSOR
Mark Richardson Owner, Vice Chairman
An American businessman, real estate expert, and former co-owner of the Carolina Panthers, Mark is a part owner and Vice Chairman of James Capital Advisors and an integral part of the company’s breakaway success. Graduating from Clemson University in 1983, he went on to receive his Master’s of Business Administration from the University of Virginia in 1987 and in 2013 was named a lifetime trustee of Clemson University. Mark is also a shrewd franchise investor, with more than 50 Bojangles’ Famous Chicken ‘n Biscuits restaurants under his proprietorship across the U.S. At James Capital Advisors, Mark uses his expertise as a professional real estate developer to focus on single-tenant projects in the southeast.
(424) 325-2600 info@jamescapitaladvisors.com www.jamescapitaladivsors.com
In July of 2018, Former Founder & Owner of the NFL’s Carolina Panthers, Mark Richardson, invested a significant amount of capital into JCA.
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•
Former Owner of the Carolina Panthers
•
Extensive Real Estate Portfolio
•
50+ Unit Bojangles’ Franchisee
•
Lifetime Trustee of Clemson University
•
Co-Owner & Vice Chairman of JCA
JAMES CAPITAL ADVISORS
MARKETING CAMPAIGN
WEEK
WEEK
01
02
03
CONTROLLED LISTING
HYPERTARGETING
JCA MASS OUTREACH
Upon execution of the listing agreement, JCA will quietly distribute the offer to a strategically selected group of buyers.
Upon completion of a perfect marketing package, JCA will publish across all platforms and target tier one prospects.
Large-scale digital distribution utilizing our industry-first CRM platform, reaching 250,000+ brokers and principals.
WEEK
WEEK
WEEK
04
57
WEEK
05
06
PREMIUM PLATFORMS
BROKER RELATIONSHIPS
BUYER QUALIFICATION
Coordinated campaigns leveraging our third-party property marketing partners.
JCA maintains strong credibility with all other representatives of buyers across the country.
JCA understand the necessary questions to ask and required terms to achieve a smooth closing process.
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046
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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FOR INQUIRIES
PLEASE CONTACT
elliot Hassan Senior Director
(424) 325-2643
elliot.hassan@jamescapitaladvisors.com CA RE Lic. 01481211
59
MIKE HANASSAB
JOHN KATNIK Senior Associate
Joseph Lieberman
(424) 325-2642
(424) 325-2644
(424) 325-2641
Senior Director
mike.hanassab@jamescapitaladvisors.com CA RE Lic. 01484891
john.katnik@jamescapitaladvisors.com CA RE Lic. 02002695
Associate
joseph.lieberman@jamescapitaladvisors.com CA RE Lic. 02074974
1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046