2915 W. 12TH ST
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
tyler chung Associate (424) 325-2632
will james Director (424) 325-2610
tom jonsson Director (424) 325-2621
SECTION ONE
PROPERTY OVERVIEW
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2915 W. 12TH ST, LOS ANGELES, CA 90006
PROPERTY OVERVIEW
DETAILS
Street Address City State Zip Code APN
Los Angeles CA 90006 5080-026-014
Number of Units Occupancy
5 80%
Pitched
On-Site Parking
2
Zoning
Number of Stories
2
Unit Mix
Water
Master-Metered
4,720 SF
Electric
Individually Metered
Lot Size
4,516 SF
Gas
Individually Metered
Construction
Wood-Frame Siding
1890
Roof
Number of Buildings
Rentable Square Feet
Year Built
4
2915 W. 12th St
2 Spaces LAR3 (4) 1 Bed / 1 Bath (1) 2 Bed / 1 Bath*
*Detached home.
2915 W. 12TH ST, LOS ANGELES, CA 90006
PROPERTY OVERVIEW
HIGHLIGHTS
Unique Unit-Mix The subject property comprises a total of 4,720 rentable square feet and a unit mix consisting of four 1 bed / 1 bath and one detached home composed of a 2 bed / 1 bath.
On-Site Parking There is on-site parking available for 2 cars located between both buildings through 12th St at the entry way on S. Harvard Blvd.
Upside in Rents There is over 66% of rental upside in a strong rental market making it a prime investment opportunity near downtown Los Angeles and Koreatown.
Detached Home Delivered Vacant The 2 Bed / 1 Bath detached home will be delivered vacant giving the subject property great upside potential.
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2915 W. 12TH ST, LOS ANGELES, CA 90006
SECTION TWO
FINANCIAL ANALYSIS
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2915 W. 12TH ST, LOS ANGELES, CA 90006
FINANCIAL ANALYSIS
PRICING ANALYSIS
$1,400,000 Price Price per Unit Price per Square Foot
CURRENT
PRO FORMA
2.84%
5.30%
17.61
11.73
Gross Income
$75,525
$113,430
Expenses
$35,775
$39,186
NOI
$39,750
$74,244
CAP Rate GRM $1,400,000 $280,000 $296.61
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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2915 W. 12TH ST, LOS ANGELES, CA 90006
FINANCIAL ANALYSIS
FINANCING
Down Payment
$854,000 (61%)
Loan Amount
$546,000
Interest Rate
4.00%
Amortization / Fixed-Period
30-Years / 5-Years
Term
8
360 Months
CURRENT
PRO FORMA
Debt Service
-$31,280
-$31,280
Pre-Tax Cash Flow
$8,470
Principle Reduction
-$9,615
Total Return
$18,085
(0.99%)
$42,963
(5.03%)
-$9,615 (2.12%)
$52,579
(6.16%)
2915 W. 12TH ST, LOS ANGELES, CA 90006
FINANCIAL ANALYSIS
INCOME AND EXPENSE ANNUAL
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INCOME
CURRENT
PRO FO RMA
Base Rental Income
$79,500
Gross Potential Income Vacancy Allowance
ANNUAL
EXPENSE
CURRENT
PRO FORMA
$119,400
Taxes (1.17%)
$16,380
$16,380
$79,500
$119,400
Insurance ($0.65/sq. ft.)
$3,068
$3,068
$3,975
$5,970
Utilities ($85/unit/month)
$5,100
$5,100
$75,525
$113,430
Repairs & Maintenance (5% of EGI) $3,776
$5,672
Operating Expenses
$35,775
$39,186
Management Fee (4% of EGI)
$3,021
$4,537
Net Operating Income
$39,750
$74,244
Gardener ($75/month)
$900
$900
Pest Control ($50/month)
$600
$600
Reserves ($200/Unit)
$1,000
$1,000
Direct Assessments
$930
$930
Miscellaneous ($200/unit)
$1,000
$1,000
Operating Expenses
$35,775
$39,186
2915 W. 12TH ST, LOS ANGELES, CA 90006
FINANCIAL ANALYSIS
RENT SCHEDULE
PRO FORMA
UNIT #
UNIT TYPE
RENT
1
1 Bed / 1 Bath
$1,445
$1,800
2
1 Bed / 1 Bath
$880
$1,800
3
1 Bed / 1 Bath
$505
$1,800
4
1 Bed / 1 Bath
$1,045
$1,800
5*
2 Bed / 1 Bath**
$2,750
$2,750
$6,625
$9,950
TOTAL
RENT
*Vacant. **Detached home.
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2915 W. 12TH ST, LOS ANGELES, CA 90006
SECTION THREE
LOCATION OVERVIEW
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2915 W. 12TH ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
KOREATOWN
Access to Shops & Restaurants The subject property has a walk score of 93 and is located two blocks from Wilshire and Olympic Blvd. Neighborhood attractions include: The Galleria Mall, Koreatown Plaza, 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 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 residential units now under construction according to CoStar Market Analytics, sizeable proposals continue to work their way through the entitlement process. 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. Rental Growth Koreatown continues to flourish and has been attracting more population to the city. 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. 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.
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2915 W. 12TH ST, 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 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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2915 W. 12TH ST, LOS ANGELES, CA 90006
PROPERTY OVERVIEW
HOTSPOTS
The Line Hotel
Openaire
Wiltern Theatre
Kang Ho-dong Baekjeong
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 deco design contains decorative tile work along with colorful murals.
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 wait times fall in the two-hour range almost every day of the week.
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.
2915 W. 12TH ST, 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
WALKER’S PARADISE
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2915 W. 12th St has a Walk Score of 92 out of 100. This location is a Walker’s Paradise so daily errands do not require a car. 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, the sometimes grimy streetscape near Western and Olympic. The mall features apareal, gifts, specialty foods and a supermarket.
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2915 W. 12TH ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
AERIAL
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2915 W. 12TH ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
AERIAL
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2915 W. 12TH ST, LOS ANGELES, CA 90006
LOCATION OVERVIEW
DEMOGRAPHICS
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Population
1-Mile
3-Mile
5-Mile
2024 Projection
91,315
661,154
1,367,625
2019 Estimate
90,390
647,692
1,342,354
2010 Census
88,316
596,261
1,249,509
Growth ‘19 - ‘24
1.02%
2.08%
1.88%
Growth ‘10 - ‘19
2.35%
8.63%
7.43%
Households
1-Mile
3-Mile
5-Mile
2024 Projection
31,033
236,704
507,509
2019 Estimate
30,806
231,538
497,822
2010 Census
30,585
211,350
462,072
Growth ‘19 - ‘24
0.74%
2.23%
1.95%
Growth ‘10 - ‘19
0.72%
9.55%
7.74%
Average Income
$48,869
$61,389
$69,653
Median Income
$35,001
$38,688
$43,996
2915 W. 12TH 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 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
FOR INQUIRIES
PLEASE CONTACT
TYLER CHUNG
will james
tom jonsson
(424) 325-2632
(424) 325-2610
(424) 325-2621
Associate
tyler@jamescapitaladvisors.com CA RE Lic. 02085199
Director
will@jamescapitaladvisors.com CA RE Lic. 01734419
Director
tom@jamescapitaladvisors.com CA RE Lic. 01755842