THE OFFERINGS
EXECUTIVE SUMMARY
LOCATION
RENT COMPARABLES
DEMOGRAPHICS
04
15
23
30
33
CONFIDENTIALITY & DISCLAIMER All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Studio City in compliance with all applicable fair housing and equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction
Exclusively Listed By: Rich Johns
Adam Zunder
CalBRE Lic. #01432215
CalBRE Lic. #01821053
Multifamily Investment Advisor 818.432.1575 richjohns@kw.com
Multifamily Investment Advisor 818.554.5560 azunder@kw.com
THE
OFFERINGS
3232 & 3245 AVENUE 32
KW Commercial is pleased to present 3232 W. Avenue 32 and 3245 W. Avenue 32, a portfolio of 2 separate non-rent controlled apartment communities totaling 28 units and located in Glassell Park, CA (90065) Glassell Park is experiencing a dramatic and significant shift like what Silver Lake and Echo Park experienced over the past 20 years with the biggest news for the area being the LA River revitalization master planned project which would run just 1 mile away from the offering(s). This mammoth undertaking is poised to alter the face of LA and specifically, Glassell Park, for generations to come. A world class team, including landscape / urban design architect Frank Gehry (think-Washington Monument) is leading the charge to transform the LA River into a recreational green oasis. 3232 W. Avenue 32 The offering, built in 1990, features 16 large apartment homes with an exceptional unit composition featuring Ten (10) Large 2 Bedroom-2 Bathroom, Four (4) 2 Bedroom-1.5 Bathroom, One (1) 4 Bedroom-2.5 Bathroom and One (1) 4 Bedroom–2 Bathroom apartment homes encompassing +/-16,128 square feet of improvements. Each unit includes central air conditioning and heating. The common areas feature 2 laundry rooms (building owned equipment), lobby and central courtyard. Each unit includes one or more balconies and select upper units feature treetop views of the surrounding city. 3245 W. Avenue 32 The offering, built in 1990, features 12 large apartment homes with an exceptional unit composition featuring Twelve (12) Large 2 Bedroom-2 Bathroom apartment homes encompassing +/-11,966 square feet of improvements. Each unit includes central air conditioning and heating. The common areas feature 2 laundry rooms (building owned equipment), lobby and central courtyard. Each unit includes one or more balconies and select upper units feature treetop views of the surrounding city. Eleven (11) of Twenty-Eight (28) apartment homes (only 40% of units) have been upgraded with completely reimagined interior spaces featuring new wood flooring, decorative paint finishes, upgraded baths with new vanities, tile surrounds and kitchens with new cabinetry and appliance packages along with new lighting, locks, hardware and innovative finishes throughout. Since the assets are not subject to rent control, the remaining Seventeen (17) un-renovated units will provide the astute investor future increased rent potential when vacated. The common and exterior spaces of both properties have undergone a significant renovation highlighted by updated entries, passages, staircases, lighting along with draught resistant landscaping and redesigned exterior color palate. Glassell Park (90065) is as diverse as the people living in it. Thanks to its neighborhood feel, the area is perfect for young people looking for a “next-level” coffee experience and a community vibe. Within blocks you will find many of L.A.’s newest foodie revolution hot spots along with Habitat Coffee for a barista inspired espresso, Lemon Poppy Kitchen for European pastries, Tres Palmas for seafood tacos, dog friendly Division 3 for an alfresco breakfast or Verdugo Bar for craft beer on the patio.
3232
HIGHLIGHTS West Avenue 32
3245
West Avenue 32
investment h i g h l i g h ts THE OPPORTUNITY:
3232 W. Avenue 32 and 3245 W. Avenue 32, is a portfolio of 2 separate non-rent-controlled apartment communities totaling 28 units and located in Glassell Park, CA (90065) a densely populated rental market of Los Angeles and recently known for excellent rent growth.
VALUE ADD OPPORTUNITY:
3232 W. AVENUE 32 AND 3245 W. AVENUE 32 features 17 unrenovated units (+/-60%) thus allowing future increased rent potential as the remaining units turn over.
CURRENT RETURNS:
3232 W. AVENUE 32 AND 3245 W. AVENUE 32 has undergone a systematic renovation of Eleven (11) of the Twenty-Eight (28) apartment homes (+/-40% of units) thus creating growing income metrics. Investors could experience significant increasing returns with further renovations when units turn over, thus facilitating strong and stable income metrics.
THE GAME CHANGER:
The mammoth LA River revitalization master planned project runs just 1 mile away from the properties and is poised to alter the face of LA and specifically, Glassell Park, for generations to come. A world class team, including landscape / urban design architect Frank Gehry (think-Washington Monument) is leading the charge to transform the LA River into a recreational green oasis.
OPPORTUNITY ZONE BENEFITS:
3232 W. AVENUE 32 AND 3245 W. AVENUE 32 is located within a newly established Qualified Opportunity Zone for investment, established by the Tax Cuts and Jobs Act, Section 1400Z. The new section 1400Z allows any taxpayer to defer paying tax on capital gains from the sale of property if those gains are timely invested in a Qualified Opportunity Fund (QOF) which, in turn, must invest 90 percent of its assets in businesses located or property used in designated communities.
WELL LOCATED:
Glassell park (90065), adjacent to Atwater Village and Glendale and also a short 2.5-mile drive o Los Feliz or 3.6-mile drive into Silver Lake’s Sunset Junction, is as diverse as the people living in
STRONG EMPLOYMENT:
LA’s largest and most diverse employment centers are within easy access to Glassell Park, with DTLA just 6 miles south, Glendale just 3.5 miles north and Hollywood just 5.3 miles west.
LACK OF HOUSING AFFORDABILITY:
There is a significant affordability gap to home ownership in Glassell Park with the median home price of $809,600 with the average list price/sf of $571. Home values have gone up 11.4% over the past year with predictions that prices will continue to rise +/11.5% within the next year.
NO SEISMIC RETROFIT REQUIRED:
The property is not on the list of buildings that require a seismic retrofit.
3232 AVENUE 32
3232 AVENUE 32 EXTERIOR
3232 AVENUE 32 INTERIOR LIVING SPACES
HIGHLIGHTS
3245
AVENUE 32
3245 AVENUE 32 EXTERIOR
3245 AVENUE 32 EXTERIOR
3245 AVENUE 32 INTERIOR LIVING SPACES
EXECUTIVE S U M M A R Y
PORTFOLIO SUMMARY SALE Portfolio Combined Total 3232 & 3245 West Avenue 32
3232 West Avenue 32
3245 West Avenue 32
FINANCIAL SUMMARY
3232 West Avenue 32 Los Angeles, CA 90065
RENT ROLL
3232 West Avenue 32 Los Angeles, CA 90065
DEBT QUOTE SCENARIOS 3232 West Avenue 32 Los Angeles, CA 90065
Jarret Tarnol Quantum Capital Partners (310) 402-0022 Direct (818) 335-1152 Cell jtarnol@quantumcp.com www.quantumcp.com
FINANCIAL SUMMARY
3245 West Avenue 32 Los Angeles, CA 90065
RENT ROLL
3245 West Avenue 32 Los Angeles, CA 90065
DEBT QUOTE SCENARIOS 3245 West Avenue 32 Los Angeles, CA 90065
Jarret Tarnol Quantum Capital Partners (310) 402-0022 Direct (818) 335-1152 Cell jtarnol@quantumcp.com www.quantumcp.com
Property Details Address: 3232 West Avenue 32, Los Angeles, CA 90065 Assessor’s Parcel Number: 5458-014-016 Buildings: One Year Built: 1990 Land Use: Apartments Zoning: LARD2 Stories: Three
Address: Assessor’s Parcel Number: Buildings: Year Built: Land Use: Zoning: Stories:
SITE DESCRIPTION Units: Gross Square Footage: Lot Size Square Footage:
SITE DESCRIPTION Units: Gross Square Footage: Lot Size Square Footage:
16 ± 16,128 ± 12,846
3245 West Avenue 32, Los Angeles, CA 90065 5458-015-042 One 1990 Apartments LARD2 Three
12 ± 11,966 ± 10,199
UTILITIES Electric: Gas:
Separately Metered - LADWP Separately Metered - LADWP
UTILITIES Electric: Gas:
Separately Metered - LADWP Separately Metered - LADWP
CONSTRUCTION Foundation: Framing: Exterior: Roof:
Concrete/Raised Foundation Wood Frame Stucco Flat
CONSTRUCTION Foundation: Framing: Exterior: Roof:
Concrete/Raised Foundation Wood Frame Stucco Flat
LOCATIONS
CENTER OF LA
GLASSELL PARK - NEW LA RIVER PROJECT Frank Gehry hired to come up with a new, greener LA River. Los Angeles County hired world-renowned architect Frank Gehry to work up a master plan for the restoration of the 51-mile Los Angeles River, two county supervisors announced. Gehry, who is known for his fanciful building designs, including the Disney Hall in downtown L.A., will work with OLIN, a worldwide landscape and urban design firm, known for landscaping the Washington Monument and the plaza in front of the Metropolitan Museum of Art in New York City. They will work with engineering firm Geosyntec, which will keep the flood-control aspects and hopefully create more storm-water capture elements, said Supervisor Sheila Kuehl, who along with Supervisor Hilda Solis, made the joint announcement.
Kuehl said the county has been working since 2016 to coordinate what she called piecemeal plans around since 1996 into something that is more cohesive.
“This world-class team, including LA County, Frank Gehry, and other partners, as well as wide community input and participation, will ensure that the L.A. River serves the mental and physical well being of residents and tourists for generations “The master plan is an attempt to pull together a to come,” said Solis in a prepared statement. lot of smaller plans in order that there would be a vision, a continuous idea of what the river is for,” Gehry has already studied the river for several Kuehl said in an interview Monday. years, which flows out of Big Tujunga in the Angeles National Forest and Bell Creek near Canoga Park, River LA, a nonprofit involved with conceptualizing into the Sepulveda Dam and through the western improvements to what is mostly a concrete flood San Fernando Valley, then turns east past Universal control channel, will work with the two firms. Also, City, Griffith Park and south through downtown a steering committee is being formed of community Los Angeles and also through various smaller cities leaders and technical experts to work with the and empties into Long Beach. It also receives water from several other tributaries, including the Arroyo architects. Seco above Pasadena.
Frank Gehry Frank Gehry is a Canadian-American architect known for postmodern designs, including the Walt Disney Concert Hall and the Guggenheim Museum in Bilbao, Spain. Frank Gehry was born Frank Owen Goldberg in Toronto, Canada on February 28, 1929. He studied at the University of Southern California and Harvard University. Gehry, based in Los Angeles since the 1960s, is among the most acclaimed architects of the 20th century, and is known for his use of bold, postmodern shapes and unusual fabrications. Gehry’s most famous designs include the Walt Disney Concert Hall in Lost Angeles and the Guggenheim Museum in Bilbao, Spain.
GLASSELL PARK - NEW LA RIVER PROJECT Architects propose seven ways to reinvigorate the Los Angeles river... The LA River Downtown Design Dialogue celebrates the 10th anniversary of the Los Angeles River Revitalisation project, which Frank Gehry is also working on. The project is designed to overhaul areas along the barren canal-like waterway that weaves through the Californian city. Led by the Bureau of Engineering and Mayor Garcetti’s Office, The City of Los Angeles assigned each firm, including Gruen Associates, WSP, CH2M, Chee Salette, Mia Lehrer + Associates, AECOM and Tetra Tech, with a mile-long stretch of the river to revitalise. In their proposals the firms were required to imagine new ways in which to improve the public connection to the river, while taking into account projects that are already underway and future plans. Assigned a mile that runs between Barclay and Spring St, the scheme by local firm Gruen Associates integrates fields and public pathways with the existing railway yard. Colourful playgrounds, undulating pathways and a spot for kayaking are among the proposals made by seven architecture firms to revitalise areas along the Los Angeles river.
Gruen Associates’ scheme integrates fields and public pathways with the existing railway yard.
WSP’s proposal lines the area between Spring St and Cesar Chavez Ave with a walkway that features integrated terraced seating.
GLASSELL PARK - NEW LA RIVER PROJECT Architects propose seven ways to reinvigorate the Los Angeles river... WSP’s proposal lines the area between Spring St and Cesar Chavez Ave with a walkway, along which terraced seating will overlook the river and areas of planting. Parts of the river will be widened to curve into the pathway, while stepping stones will provide a bridge across the water. Other parts of the scheme include a bridge that will lead from the roadside to an outlook over the river, while an abundance of trees will buffer the rail track from the promenade. In the next section, CH2M proposes a new bicycle path to replace an existing one that has been closed, and includes look-out points and cafes. In the section reimagined by Chee Salette, a crossing made up of long platforms will allow pedestrians to walk along the middle of the river. Vegetation will be planted between each of the sections and continue up the tiered seating on the western bank. Chee Salette have proposed a crossing made up of long platforms that will allow pedestrians to walk along the middle of the river.
Mia Lehrer + Associates’s scheme includes an undulating path- Tetra Tech have imagined a glazed walkway with a restaurant way that leads to a launch pad for kayaking. and a new cycle pathway that meets with the riverside
CH2M proposes a new bicycle path to replace an existing one that has been closed.
Glassell Park The development of Glassell Park began in the early 20th Century, as subdivisions between Verdugo and San Fernando Roads began to be sold in 1907. In 1912, the city of Los Angeles annexed most of Glassell Park, annexing the remainder in 1916.[10] The Glassell family continued to subdivide their land, selling off what is now Forest Lawn Memorial Park during the Great Depression. The growing neighborhood was served by a line of the Los Angeles Railway, which traveled in the median of Eagle Rock Boulevard towards Eagle Rock Today, Glassell Park is experiencing significant and steady demographic shifts due to its abundant craftsmen and hillside homes, and convenient location close to Downtown Los Angeles, Silver Lake, and Highland Park. Glassell Park’s median home price is increasing at a rapid pace, significantly exceeding that of Los Angeles County. In 2016, the median home price in Los Angeles County rose by about 7 percent; in that same period, the median home price in Glassell Park rose 25.3 percent. Glassell Park stands to benefit greatly from the city’s $1.6-billion Los Angeles River revitalization project. The project will restore habitat, widen the river, create wetlands and provide access points and bike trails along an 11-mile stretch of the Los Angeles River that runs from downtown Los Angeles through Glassell Park.
Atwater Village... If you’re an eastsider, Atwater Village is where you move if you want to feel a little bit grown up, but aren’t quite ready to be Eagle Rock grown up. Once no more than poppy fields, this lesser known, little-brother neighborhood is on the rise. Compete with other “creatives” to get a “I can’t believe we actually got it” house . Atwater is a place as diverse as it is welcoming. Quiet, tree-lined streets? Check. Surplus of locals-heavy happy hours and vibrant weekend energy? Yep. New bars, cafes and interesting shops opening on the regs? All the time. That elusive ‘community feel’? In spades. It’s the perfect LA neighborhood for discovery...and also brunch.
Eagle Rock... Eagle Rock was a farming community at first, but the trolley soon snaked its way up from Los Angeles, with a line that ran along Eagle Rock Boulevard all the way to Colorado Boulevard, a dusty thoroughfare that became the Main Street of what was now a suburb of a restlessly growing city. With its surfeit of pizza parlors and coffeehouses, laid-back atmosphere and relationship to Occidental College, it feels more akin to a well-to-do Midwestern college town than an outpost of one of the world’s most massive conurbations. President Barack Obama, Ben Affleck and Terry Gilliam are just a few of the notables who attended school here, and the collegiate atmosphere has over the years drawn such writers as John Steinbeck and Dalton Trumbo to take up residence in one of the sturdy bungalows in the shadow of the eagle rock.
RENT
CO M PA R A B L E S
RENT COMPARABLES TWO BEDROOM Property 3232 West Avenue 32 Los Angeles, CA 90065
Units
Year Built
16
1990
Private Owner Owner Managed
24
1989
Private Owner Owner Managed
Rent
Owner / Manager
$1,750 $2,195
SF
Rent/SF
FOUR BEDROOM Rent
SF
Rent/SF
-
-
$4,000
-
-
980
$2.23
-
-
-
1
3546 Fletcher Drive Los Angeles, CA 90065
2
719 East Acacia Avenue Glendale, CA 91205
30
1986
Private Owner Owner Managed
$2,150
-
-
-
-
-
3
1130 East Colorado Street Glendale, CA 91205
25
2009
Private Owner Owner Managed
$2,650
1,250
$2.12
-
-
-
4
3415 Drew Street Los Angeles, CA 90027
12
1950
Private Owner Owner Managed
$2,150
600
$3.58
5
3949 Los Feliz Blvd Los Angeles, CA 90027
102
1972
1200
$3.33 $3.33 $3.33 $3.33
Private Owner Owner Managed
$4,000
AVERAGE:
HIGH: LOW:
$2,286 943 $2,650 1,250 $2,150 980
$2.64
$4,000
1,200
$3.58 $2.12
$4,000 $4,000
1,200 1,200
DEMOGRAPHICS SNAPSHOT G L A S S E L L
P A R K Male Population
POPULATION TOTAL POPULATION
46,008
MEDIAN AGE
35.45
MALE POPULATION
23,086
FEMALE POPULATION
22,922
Female Population
50.2% 49.8%
HOUSEHOLDS & INCOME TOTAL HOUSEHOLDS
14,585
# OF PERSONS PER HH
3.14
AVERAGE HH INCOME
$78,352
AVERAGE HH HOUSE VALUE
$632,209
FAMILY HOUSEHOLDS
10,295
NON-FAMILY HOUSEHOLDS
4,290
Family Households
29.4% 70.6%
Non-family Households