MARKETING PACKAGE
3940 NICOLET AVE, LOS ANGELES, CA 90008
3940 NICOLET AVE
MARKETING PACKAGE TABLE OF CONTENTS 01
Property Overview
02 Financial Analysis 03 Location Overview CONTACT INFORMATION
chase gardner Associate (424) 358-3399
will james Director (424) 325-2610
tom jonsson Director (424) 325-2621
02
3940 NICOLET AVE, LOS ANGELES, CA 90008
SECTION ONE
PROPERTY OVERVIEW
03
3940 NICOLET AVE, LOS ANGELES, CA 90008
PROPERTY OVERVIEW
DETAILS
Street Address City State Zip Code APN
3940 Nicolet Ave* Los Angeles CA 90008 5030-008-010
Number of Units
16
Parking
Tuck Under (11 Spaces)
Number of Buildings
1
Zoning
R3
Number of Stories
2
Unit Mix
Water
Master-Metered
Electric
Individually Metered
Rentable Square Feet
16,876 SF
Gas
Individually Metered
Lot Size
15,963 SF
Construction
Wood-frame Stucco
Year Built
1956
Roof
(3) 1 Bed / 1 Bath (2) 2 Bed / 1 Bath (10) 2 Bed / 1.5 Bath (1) 3 Bed / 2 Bath
Pitched
* The property is subject to the City of Los Angeles Soft-Story Retrofit Program
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3940 NICOLET AVE, LOS ANGELES, CA 90008
PROPERTY OVERVIEW
HIGHLIGHTS
Value-Add Opportunity Building to be delivered with 11 vacancies allowing for a prospective investor to capture market rent on 68% of the units.
Large Floorplans The Subject Property features spacious units with a total building size of 16,876 Sq. Ft.
Diverse Unit Mix: The Subject Property consists of 1-Bedroom; 2-Bedroom and 3-Bedroom Units; 75% of the Units are 2-Bedroom Units.
Attractive Financing The property should provide for financing at 65% to 75% LTV of the asking price once fully leased up and stabilized.
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3940 NICOLET AVE, LOS ANGELES, CA 90008
SECTION TWO
FINANCIAL ANALYSIS
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3940 NICOLET AVE, LOS ANGELES, CA 90008
FINANCIAL ANALYSIS
PRICING ANALYSIS
$3,600,000 Price Price per Unit Price per Square Foot
CURRENT
PRO FORMA
4.39%
6.19%
12.15
9.69
Gross Income
$281,557
$352,830
Expenses
$123,591
$130,006
NOI
$157,966
$222,824
CAP Rate GRM $3,600,000 $225,000 $213.32
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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3940 NICOLET AVE, LOS ANGELES, CA 90008
FINANCIAL ANALYSIS
FINANCING
Down Payment
$1,224,000 (34%)
Loan Amount
$2,376,000
Interest Rate
3.75%
Amortization / Fixed Period
30-Year / 5-Year
Term
360 Month
CURRENT
PRO FORMA
Debt Service
-$132,044
-$132,044
Pre-Tax Cash Flow
$25,923
Principle Reduction
-$43,689
Total Return
$69,612
08
(2.12%)
$90,781
(7.42%)
-$43,689 (5.69%)
$134,470
(10.99%)
3940 NICOLET AVE, LOS ANGELES, CA 90008
FINANCIAL ANALYSIS
INCOME AND EXPENSE ANNUAL
INCOME
CURRENT
PRO FORMA
Base Rental Income
$296,376
Gross Potential Income
$296,376
Vacancy Allowance
$14,819
Effective Gross Income
$281,557
Operating Expenses
$123,591
Net Operating Income
$157,966
09
(5%)
ANNUAL
EXPENSE
CURRENT
PRO FORMA
$371,400
Taxes (1.17%)
$42,120
$42,120
$371,400
Insurance ($0.65/sq. ft.)
$10,969
$10,969
Utilities ($100/unit/month)
$19,200
$19,200
Repairs & Maintenance (5% of EGI)
$14,078
$17,642
Management Fee (4% of EGI)
$11,262
$14,113
Gardener ($75/month)
$900
$900
Pest Control ($50/month)
$600
$600
Reserves ($200/Unit)
$3,200
$3,200
Onsite Manager ($1000/ Month)
$12,000
$12,000
Direct Assessments
$2,230
$2,230
Trash ($461/ Month)
$5,532
$5,532
Miscellaneous (Estimated)
$1,500
$1,500
Operating Expenses
$123,591
$130,006
$18,570
(5%)
$352,830 (44%)
$130,006 $222,824
(37%)
3940 NICOLET AVE, LOS ANGELES, CA 90008
FINANCIAL ANALYSIS
RENT SCHEDULE
PRO FORMA
UNIT #
UNIT TYPE
RENT
1
2 Bed / 1 Bath
$1,179
$1,950
2
2 Bed / 1.5 Bath
$400
$2,050
3
2 Bed / 1.5 Bath
$1,081
$2,050
4*
2 Bed / 1.5 Bath
$2,050
$2,050
5*
2 Bed / 1.5 Bath
$2,050
$2,050
6*
1 Bed / 1 Bath
$1,600
$1,600
7^
1 Bed / 1 Bath
$900
$900
8
2 Bed / 1 Bath
$434
$1,950
9
2 Bed / 1.5 Bath
$704
$2,050
10*
2 Bed / 1.5 Bath
$2,050
$2,050
11*
3 Bed / 2 Bath
$2,450
$2,450
12*
2 Bed / 1.5 Bath
$2,050
$2,050
14*
2 Bed / 1.5 Bath
$2,050
$2,050
15*
2 Bed / 1.5 Bath
$2,050
$2,050
16*
1 Bed / 1 Bath
$1,600
$1,600
17*
2 Bed / 1.5 Bath
$2,050
$2,050
$24,698
$30,950
TOTAL
RENT
* Vacant. ^ Delivered Vacant – Currently Designated for On-Site Manager.
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3940 NICOLET AVE, LOS ANGELES, CA 90008
SECTION THREE
LOCATION OVERVIEW
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3940 NICOLET AVE, LOS ANGELES, CA 90008
LOCATION OVERVIEW
SubMarkets
Leimert Park Leimert Park is a neighborhood in the South Los Angeles region of Los Angele, CA. Developed in the 1920s as a mainly residential community, it features Spanish Colonial Revival homes and tree-lined streets. Leimert Park was named the 2016 Neighborhood of the Year by CurbedLA. com. Its boundaries are roughly Rodeo Road on the north, Sutro Avenue on the east, Vernon Avenue on the south, and Crenshaw Boulevard on the west. The district’s main street is Leimert Boulevard, which bisects the neighborhood from northeast to southwest. Developed by Walter H. “Tim” Leimert (for whom it is named), in 1928, it was designed by the famous landscape architects, the Olmsted brothers. Leimert Park was one of the first planned communities in Southern California designed for low- and middle-income families, and was considered a model of urban planning for its time. For the past several decades Leimert Park has been considered a hub of arts and culture. From literature and poetry, to jazz and hip hop, the 1.2 square-mile neighborhood known as Leimert Park possesses a unique creative energy that has given the area a reputation as “Greenwich Village.”
Baldwin Village In 1988, Baldwin Village became a distinct community in the city’s General Plan and is bounded by La Brea Avenue, Marlton Avenue, Rodeo Road, Martin Luther King Jr. Boulevard and Santo Thomas Drive. The area was developed in the early 1940s and 1950s by architect Clarence Stein, as an apartment complex for young families. It is known by locals because of the tropical trees and foliage such as palms, banana trees and begonias that once thrived among the area’s tropical-style postwar apartment buildings. Baldwin Village sits below the affluent Baldwin Hills, a hillside neighborhood with million dollar homes and stunning views of Los Angeles. Baldwin Hills is also home to the Kenneth Hahn State Recreation Area, a state park unit of California in the Baldwin Hills Mountains of Los Angeles. The park is managed by the Los Angeles County Department of Parks and Recreation. As one of the largest urban parks and regional open spaces in the Greater Los Angeles Area, many have called it “L.A.’s Central Park”.
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3940 NICOLET AVE, LOS ANGELES, CA 90008
LOCATION OVERVIEW
DEVELOPMENTS
Crenshaw Orange Metro Line Two new metro stops are currently under construction and planned to open in the summer of 2021. One located at Crenshaw & MLK Blvd and the other at Crenshaw & Leimert Park Blvd. Both stops will serve the Leimert Park community. The Metro Crenshaw/LAX Line will extend from the existing Metro Exposition Line at Crenshaw and Exposition Boulevards. The Line will travel 8.5 miles to the Metro Green Line and will serve the cities of Los Angeles, Inglewood and El Segundo; and portions of unincorporated Los Angeles County. The new Metro Rail extension will offer an alternative transportation option to congested roadways and provide significant environmental benefits, economic development and employment opportunities throughout Los Angeles County. Riders will be able to make easy connections within the entire Metro Rail system, municipal bus lines and other regional transportation services. In addition to the alternative transportation option to congested roadways, the project will also provide significant environmental benefits, economic development and employment opportunities throughout Los Angeles County. The project began construction in 2014 and anticipates completion in 2021. The Crenshaw/LAX Project is one of 12 transit projects funded by Measure R, the half-cent sales tax approved by Los Angeles County voters in 2008.
MLK Blvd Station
Leimert Park Station
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3940 NICOLET AVE, LOS ANGELES, CA 90008
LOCATION OVERVIEW
AERIAL
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3940 NICOLET AVE, LOS ANGELES, CA 90008
LOCATION OVERVIEW
AERIAL
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3940 NICOLET AVE, LOS ANGELES, CA 90008
LOCATION OVERVIEW
WALKABILITY 1.
Ralphs 5080 Obama Blvd, Los Angeles, CA 90016 0.7 MILES FROM SUBJECT PROPERTY
2. Baldwin Hills Shopping Center 3601-3747 S La Brea Ave, Los Angeles, CA 90016 0.8 MILES FROM SUBJECT PROPERTY
3. Albertsons 3901 Crenshaw Blvd, Los Angeles, CA 90008 1.2 MILES FROM SUBJECT PROPERTY
4. Baldwin Hills Crenshaw Mall 3650 W. Martin Luther King Jr Blvd, Los Angeles, CA 90008 1 MILE FROM SUBJECT PROPERTY
5. Kaiser Permanente Baldwin Hills 3782 W. Martin Luther King Jr Blvd, Los Angeles, CA 90008 1 MILE FROM SUBJECT PROPERTY
6. Susan Miller Dorsey Senior High School 3537 Farmdale Ave, Los Angeles, CA 90016 0.9 MILES FROM SUBJECT PROPERTY
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3940 NICOLET AVE, LOS ANGELES, CA 90008
LOCATION OVERVIEW
WALKABILITY
01 RALPHS
This Southern California market Chain was established 147 years ago.
02 BALDWIN HILLS SHOPPING CENTER
This strip center has a variety of different national & local retailers.
04 BALDWIN HILLS CRENSHAW MALL
This mall is home to more than 100 national and local retailers.
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05 KAISER PERMANENTE BALDWIN HILLS
This is a brand new, cutting-edge four-story, 100,000 sF medical office.
03 ALBERTSONS
Albertons is the second-largest supermarket Chain in North America.
06 SUSAN MILLER DORSEY SENIOR HIGH SCHOOL
This high school has more than 900 annually enrolled students.
3940 NICOLET AVE, LOS ANGELES, CA 90008
LOCATION OVERVIEW
POINT OF INTEREST 1.
USC 3301 S. Hoover St, Los Angeles, CA 90007 4.4 MILES FROM SUBJECT PROPERTY
2. LAX 1 World Way, Los Angeles, CA 90045 7.2 MILES FROM SUBJECT PROPERTY
3. Venice Beach Venice Beach, Venice, CA 90292 9.7 MILES FROM SUBJECT PROPERTY
4. The Grove 189 The Grove Dr, Los Angeles, CA 90036 5.4 MILES FROM SUBJECT PROPERTY
5. STAPLES Center 1111 S. Figueroa St, Los Angeles, CA 90015 7.1 MILES FROM SUBJECT PROPERTY
6. SoFi Stadium 1000 S. Prairie Ave, Inglewood, CA 90301 5.8 MILES FROM SUBJECT PROPERTY
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3940 NICOLET AVE, LOS ANGELES, CA 90008
LOCATION OVERVIEW
POINT OF INTEREST
01 USC
USC has 45,000 enrolled students while offering more than 80 majors.
02 LAX
LAX is the world’s fourth busiest and the US’ second busiest airport.
04 THE GROVE
The Grove is an retail complex on the Historic Farmers Market.
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03 VENICE BEACH
Known for its bohemian spirit, Venice is a buzzing beach.
05 STAPLES CENTER
This multi-purpose arena has a capacity of more than 20,000.
06 SOFI STADIUM
This multi-purpose stadium will be able to seat up to 100,000.
3940 NICOLET AVE, LOS ANGELES, CA 90008
LOCATION OVERVIEW
DEMOGRAPHICS
POPULATION
1-Mile
3-Mile
5-Mile
2025 Projection
38,159
336,842
1,113,018
2020 Estimate
37,695
337,859
1,110,018
2010 Census
34,388
335,859
1,069,563
Growth ‘20 - ‘25
1.23%
-0.30%
0.27%
Growth ‘10 - ‘20
9.62%
0.60%
3.78%
1-Mile
3-Mile
5-Mile
2025 Projection
15,169
120,052
406,406
2020 Estimate
15,034
120,684
405,799
2010 Census
13,994
121,420
393,787
Growth ‘20 - ‘25
0.90%
-0.52%
0.15%
Growth ‘10 - ‘20
7.43%
-0.61%
3.05%
Average Income
$61,440
$80,259
$84,348
Median Income
$38,466
$55,931
$56,817
HOUSEHOLDS
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3940 NICOLET AVE, LOS ANGELES, CA 90008
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
chase gardner Associate
(424) 358-3399
chase@jamescapitaladvisors.com CA RE Lic. 02085793
will james Director
(424) 325-2610
will@jamescapitaladvisors.com CA RE Lic. 01734419
tom jonsson Director
(424) 325-2621
tom@jamescapitaladvisors.com CA RE Lic. 01755842
James Capital Advisors, Inc.
www.jamescapitaladvisors.com
@jamescapitaladvisors