806 TULAROSA DRIVE - LoopNet · 1 806 TULAROSA DRIVE 12-UNIT INVESTMENT OPPORTUNITY IN SILVER LAKE RICH JOHNS Multifamily Advisor T 818.432.1575 [email protected] EXCLUSIVELY LISTED

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806TULAROSA

DRIVE

12-UNIT INVESTMENT OPPOR TUNIT Y IN S ILVER LAKERICH JOHNS

Multifamily AdvisorT 818.432.1575

[email protected]

EXCLUSIVELY LISTED BY:

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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 transactionAll 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 condi-tions,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

CONFIDENTIALITY AGREEMENT


RICH JOHNSMultifamily [email protected] Lic. #01432215

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04142124

EXECUTIVE SUMMARY

FINANCIAL ANALYSIS

RENT COMPARABLES

LOCATION OVERVIEW

E X E C U T I V ES U M M A R Y

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THE OFFERING KW Commercial is pleased to present 806 Tularosa Drive, a 12-unit courtyard style

investment opportunity located in Silver Lake (90026), in the Hollywood / Silver Lake

submarket.

Current ownership has created a proven concept through common area and interior unit

renovations for all most apartment homes that has achieved strong market rental income

metrics.

The property, sited on a large 12,828 SF parcel offers investors a unique and rare opportunity

to immediately experience strong and stable income upon acquisition along with future

rental upside through natural attrition.

The unit composition features Ten (10) One Bedroom-One Bathroom and Two (2) Two

Bedroom-Two Bathroom Townhouse apartment homes within 8,566 SF of improvements.

Nine of the twelve units (75% of units) have undergone a major gut-level renovation which

has included a variety of comprehensive upgrades that include expanding doorways and

openings, new stylized baths and kitchens with matching dishwashers, refrigerators and

stoves package, new gleaming wood floor installations, new doors, lighting, locks, hardware

and designer finishes. All units are sited within a courtyard setting.

The asset, built in 1927, has undergone a systematic renovation to the common spaces as

well and is highlighted by drought resistant landscaping, gated entry and a updated exterior

color palette.

Building upgrades include much of the plumbing converted to copper lines, installation

of common area laundry facilities (owned equipment) and separate electrical and gas

utilities.

Centrally located in Silver Lake, just south of Sunset Boulevard, 806 Tularosa Drive is poised

to capitalize on the tremendous momentum in the Hollywood-Silver Lake submarket.

Furthermore, the subject property’s transit-oriented and highly walkable location offers

residents access to myriad entertainment venues, cultural destinations, and dining options

nearby.

Given the property’s location and strong income metrics, 806 Tularosa Drive is an ideal

investment for apartment operators seeking immediate returns along with long term wealth

preservation and appreciation

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I n V E S T M E n Th I g h l I g h T S

ThE OPPORTUnITY: 806 Tularosa Drive is a 12-unit investment opportunity located in Silver Lake, a densely populated rental submarket of Los Angeles known for excellent rent growth and low vacancy rates.

IMMEDIATE RETURnS: The asset has undergone a systematic renovation to much of the common areas and most of the 12 apartment interiors which are achieving near market rents thus facilitating strong and stable investor returns.

WEll lOCATED: The property is located in the heart of Silver Lake just south of Sunset Boulevard on Tularosa Drive and approx. ½ mile from Sunset Junction and the many retail and entertainment venues such as Intelligentsia, Mohawk General Store, Cafe Stella and Forage. Walk in the other direction and you’re right by Squirl and Twig & Twine. There are endless dining and shopping options within walking distance and within minutes, a short drive puts you in Los Feliz and Echo Park.

gREAT WAlKABIlITY: With a 71 Walk Score, 806 Tularosa Drive is a “Very Walkable” - Most errands can be accomplished on foot.

EXCEPTIOnAl FInAnCIng / lOAn OPTIOnS: Historically low interest rates and attractive financing options with as little as 30% down payment possible.

TRAnSIT ORIEnTED: 806 Tularosa Drive is located approx. a 1/2 mile from Sunset Junction in Silver Lake. Residents are within close proximity to the Metro Red Line which currently provides service to Downtown Los Angeles.

STROng EMPlOYMEnT: Hollywood-Silver Lake submarket is one of the strongest employment centers in the Los Angeles MSA and offers access to a diverse set of employers.

lACK OF hOUSIng AFFORDABIlITY: There is a significant affordability gap to home ownership in the Hollywood-Silver Lake submarket. As the median home price in the area is approximately $1.5m, a typical monthly mortgage payment is approx. 1 1/2 times more than the average renovated rents at 806 Tularosa Drive.

nO SEISMIC RETROFIT REQUIRED: 806 Tularosa Drive is not on the list of buildings that require a seismic retrofit.

lOCATED nEAR nEW COMMERCIAl DEVElOPMEnTS: More than 2.3 million SF of commercial space is currently under development in the Hollywood-Silver Lake submarket representing more than $1.58B in project costs, it is estimated that nearly 6,500 new jobs will be created in Hollywood alone.

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Co u r t ya rd H o u s i n g i n Lo s A n g e l e s

Famed Photographer Julius Shulman Biography:Julius Shulman (October 10, 1910 – July 15, 2009) was an American architectural photographer. His vast library of images currently resides at the Getty Center in Los Angeles. Some of his architectural photographs, like the iconic shots of Frank Lloyd Wright’s or Pierre Koenig’s remarkable structures, have been published countless times. The brilliance of buildings like those by Charles Eames, as well as those of his close friends, Richard Neutra and Raphael Soriano, was first brought to light by Shulman’s photography. The clarity of his work demanded that architectural photography had to be considered as an independent art form. Each Shulman image unites perception and understanding for the buildings and their place in the landscape. The precise compositions reveal not just the architectural ideas behind a building’s surface, but also the visions and hopes of an entire age. A sense of humanity is always present in his work, even when the human figure is absent from the actual photographs.

806 Tularosa Drive was photographed by the esteemed Julius Shulman and included in the celebrated book “Courtyard Housing in Los Angeles”.

Courtyard Housing in Los Angeles by Roger Sherwood, James Tice and Stefanos PolyzoidesPhotographed by Julius Shulman

Excerpt from Courtyard Housing in Los Angeles:Courtyard housing is a distinct medium density multi-family housing typology centered on a shared outdoor open space or garden and surrounded by one or two stories of apartment units typically only accessed by courtyard from the street (and not by an interior corridor). The courtyard housing typology developed in the Los Angeles area in the 1920s by several small scale developers in response to the region’s climate and housing needs and which typically adopted a Mediterranean or Spanish Colonial architectural style. The courtyards would be quiet and shaded outdoor spaces that served as a transition between the street and the individual apartment units and were primarily aesthetic in nature and non-recreational space. In the years following, the typology was implemented across the United States until around the time of World War II when the automobile became more dominant to daily life and had more of an impact on the built environment when then-newer housing typologies were developed in response such as the dingbat. In recent years the Courtyard Housing typology has re-emerged following the publication of the book “Courtyard Housing in Los Angeles” by Roger Sherwood, James Tice and Stefanos Polyzoides as well as to suit a contemporary need for a housing typology with a density level between that of a single or double family house and that of a traditional higher-density apartment building.

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INTERIOR LIVING SPACES

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Building Summary

Address:Assessor’s Parcel Number: Buildings: Year Built: Land Use: Zoning: Stories:

SITE DESCRIPTIONUnits: Gross Square Footage: Lot Size Square Footage:

UTILITIESElectric: Gas:

CONSTRUCTIONFoundation: Framing: Exterior: Roof:

These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Keller Williams Realty/KW Commercial or its personnel, and all interested parties must independently verify

its accuracy and completeness.

806 Tularosa Drive5427-031-003

Two1927

ApartmentsLAR2Two

128,566

12,828

Separately Metered - LADWPSeparately Metered

Raised FoundationWood Frame

StuccoFlat

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LO C AT I O NO V E R V I E W

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Somewhere between the seediness of the strip and the sparkle of West Hollywood you’ll find a thriving metropolis of creative, chilled-out cool. If you want to see a little soul in the City of Angels, step away from the vegan juice bars of Sunset Boulevard, ride east in an Uber and stop when you see the Sunset Junction sign.

The Junction culminates into the semi-gentried Silverlake neighbor-hood around Sunset Junction, about six kilometers from Downtown LA. It’s here you’ll find chic gourmet institution L&E Oyster Bar, where you’ll munch on fried oyster po’boys with shaved fennel, lettuce and gribiche and rub shoulders with another hundred people dressed in skinny jeans and cardigans. If you take a stroll down Silverlake Boulevard you’ll find some of the best bohemian homewares.

Following this uprising of trendy and eclectic residents is a diverse base of restaurants, bars, nighclubs, and retail shops that bring a wide range of cultural experiences to the area. Within the existing location, residents have the opportunity to walk to nearby restaurants and cafes, take the metro into the heart of Hollywood, or spend the afternoon in an adja-cent neighborhood via short commute.

One of a Kind...SILVER LAKE

LOCATION FUNDAMENTALSMillennials have ditched the suburbs for a more active and dynamic urban lifestyle. Many don’t own or want to own cars, so they rely on walking, biking, Metro or Uber. There is a limited supply of housing in Los Angeles, and especially in Silver Lake which is causing upward pressure on rents. Research firm Axiometrics projects rental rates are to increase by 25% over the next five years.

URBAN LIVING WITH WALKABILITYAs the most densely populated area in Los Angeles, Silver Lake is a highly walkable submarket. Residents can travel on foot to complete their daily errands and stroll to the many restaurants, clubs, chic hotels and restaurants. Score 71 out of 100, The property is located in what walkscore.com considers “Very Walkable”.

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The subject property is within walking distance of popular destinations and countless other local amenities along Sunset Junction thereby offering residents the per-fect balance of urban activity and quiet neighborhood charm. Highlighted below are notable establishments with-in walking distance.

Retail Amenities

• The Black Cat Gastropub

• Forage Vegan Restaurant

• Intelligentsia Coffee

• Baskin Robins

• Millie’s Cafe

• Subway

• Pop Physique

• Domino’s Pizza

• Alfred Coffee

• Song Restaurant

• Hache LA Restaurant

• Samosa House

• Ali Mama Cafe

• Seven Sea’s Restaurant

• Diablo Restaurant

• Los Globos

WALK SCORE: 71“VERY WALKABLE”

TRANSIT SCORE: 59“GOOD TRANSIT”

BIKE SCORE: 47“SOMEWHAT BIKABLE”

LOS GLOBOS INTELLIGENTSIA

DIABLO

THIRSTY COW

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PARKE C H O

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CULTURAL• International Museums

(The Broad, MoMa)

• Small Concert Venues (Echoplex, Bootleg Theatre)

• Greek Theater

• Walt Disney Concert Hall

RECREATION• Griffith Park

• Echo Park Lake (Recently Renovated)

• LA River (Major Rejuvenation Underway)

• Elysian Park

• Grand Park

STRONG RENT GROWTH• Competing with Hollywood Rents

(Evidencing Desirability)

• Direct Path of Development

• Strong Community Pushback Prevents Future Competition

• Populated with Small Parcels Limiting Opportunities for Large Projects or Creating Long Timelines for Assemblages

POSITIVE DEMOGRAPHICS• High Affordability Gap

• Epicenter of the Creative Class

• Growth of the Lifestyle RentersFreelance Culture, Live/Work

• Growing Income Levels in the Area

DINING & NIGHTLIFE• Numerous Bars, Restaurants, and Cafes in Echo Park Such as Mohawk

Bend, 1642, Ostrich Farm, and El Prado

• Minutes from Silver Lake, Los Feliz, and Downtown LA (Host to a Plethora of Highly Rated Restaurants and Speakeasies)

• Dodger Stadium

• Staples Center

ACCESSIBILITY• Adjacent to Many of LA’s Most Vibrant Neighborhoods Including

Silver Lake, Los Feliz, and Atwater Village

• Major Employers in Koreatown, Mid-Wilshire, and Downtown

• Convenient I-5 Freeway Access to Burbank and Glendale and 101 Freeway Access to Hollywood and Universal City

Echo Park has become one of the trendiest neighborhoods in

Los Angeles. The area’s proximity to major employment centers

combined with its dining scene, recreational and cultural amenities, and popular nightlife spots have made Echo Park an

increasingly desirable place to live.

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Virgil Village Virgil Village is a major arterial and intermodal thoroughfare with significant amounts of daily bus, car, bicycle and pedestrian traffic. This urban neighborhood is home to numerous small businesses and multi-family residences. Through initial funding, LANI assisted the Virgil Village community in developing a work plan detailing area demographics, assets, need and priorities. Funding to imple-ment a portion of the community determined improvement prior-ities was secured through the federally funded Transportation En-hancement Act. The streetscape improvements, completed in 2001, included decorative pedestrian lights and crosswalks, trees and decorative tree grates, sidewalk repair and bus shelters with access ramps.

In 2010 LANI secured funding through CALTRANS to conduct a community conceptual planning process. The resulting document now serves as a guide for the design development and construction of physical improvements in Virgil Village. The plan provides a traffic calming component and a streetscape improvement plan with in-depth descriptions of the improvements agreed upon by the com-munity including cost estimates. Priority improvements include: plazas, additional enhanced crosswalks, curb extensions, street trees and new street furniture. The Office of Councilman Mitch O’Farrell, Los Angeles City Council District 13, recently opened the Virgil Village bike lane with much enthusiasm from the neighbor-hood.

The Los Angeles Chapter of the American Planning Association recognized the Virgil Village Conceptual Plan with an award for Pub-lic Outreach in 2012.

This men’s clothing boutique inhabits a building off Virgil that used to be a motor scooter showroom. Now, they stock a range of new and vintage clothing and an eclectic assortment of homewares, objects, books and records. Dave says, “I like the stuff that Charlie stocks here. It’s smart and fun, and isn’t too serious. For lack of a better way to put it, it’s like ‘California lifestyle’—but very practical. You’re not gonna be that guy that kind of looks the part. They’re outfitting the people who would really walk around in that stuff.”

Just around the corner from Virgil Normal is Vinny’s Barber Shop. “I go to Vinny’s for a haircut every three weeks. I visit Charlie every time,” Dave says. As the story was told, Omar, the owner, got sick of working for other people and came up with a goal to start a business before he turned 30. It may have seemed ambitious given he was around 29 at the time, but he got to work and made it happen. Since then, Vinny’s has become a hit with the local guys.

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CENTRALLY LOCATED - SUPER HIGH DENSITY | RAPIDLY EXPANDING RENTAL MARKET TRUE TRANSPORTATION ORIENTED COMMUNITY - NUMEROUS SUBWAY OPTIONS | RICH IN AMENITIES - RESTAURANTS, RETAIL, ENTERTAINMENT

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F I N A N C I A LA N A L Y S I S

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FINANCIAL SUMMARY 806 Tularosa DriveLos Angeles, CA 90026

Price $4,740,000Down Payment $4,740,000Down Payment % 100%Current CAP 4.0%Market CAP 5.9%Current GRM 17.11Market GRM 12.89Cost Per Unit $395,000Cost Per SF $553.35

Cash on Cash Return 4.0%Expenses Per Unit $6,768Expenses Per Sq Ft $9.48

FINANCIAL INDICATORS# of Units Unit Type Avg. Rent Total Avg. Rent Income

10 1 Bed / 1 Bath $1,898.60 $18,986 $2,400 $24,0002 2 Bed / 2 Bath Townhomes $1,973.50 $3,947 $3,250 $6,500

Total Rental Income $22,933 $30,500Plus:Laundry Income Estimate $150 $150Total Monthly Income $23,083 $30,650Total Annual Income $276,996 $367,800

Scheduled Gross Income $276,996 $367,800Less Vacancy 2.0% ($5,540) 2.0% ($7,356)Gross Operating Income $271,456 $360,444Less Expenses 29.9% ($81,213) ($81,213)Net Operating Income $190,243 $279,231

CURRENT MARKET

CURRENT MARKET

SOURCE OF INCOME

EST. ANNUALIZED OPERATING DATA

Notations:Repairs & Maintenance: Repairs and Maintenance is underwritten as a pro forma expense of $450 per unitContract Service: Expenses are actual for Pest Control ($55.50/mo) and Landscaping ($180/mo)Utilities: DWP Utilities are actual from 12/2016 to 10/2017 (annualized at $324/mo average). The building is separately metered for gas & electrical utilitiesManagement Fee: Currently owner managed, projected at 3% of Total Annual IncomeReal Estate Taxes: Taxes have been underwritten at a tax rate of 1.20%Property Insurance: Based on actual 2017 expense

Units 12Year Built 1927Lot Sq Ft 12,828Bldg Gross Sq Ft 8,566Parking Street

BUILDING DATA

New Property Taxes $56,880Gas Utilities $1,200Water & Power Utilities $3,889Property Insurance $2,060Registration Fees $648Landscaping $2,160Repairs & Maintenance $5,400Pest Control $666Offsite Management (3%) $8,310Total Estimated Expenses ‐$81,213

ESTIMATED ANNUALIZED EXPENSES

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RENT ROLL

1

2

3

4

5

6

7

8

9

10

11

12

Occupied

Occupied

Occupied

Occupied

Occupied

Occupied

Delivered Vacant

Occupied

Occupied

Occupied

Occupied

Occupied

1bed/1bath

1bed/1bath

1bed/1bath

1bed/1bath

1bed/1bath

2bed/2bath TownHouse

N/A

1bed/1bath

1bed/1bath

1bed/1bath

1bed/1bath

2bed/2bath TownHouse

CURRENT

UNIT STATUS UNIT TYPE RENT RENT NOTES

MARKET

TOTAL

$2,400.00

$2,050.00

$2,000.00

$1,113.00

$2,005.00

$697.00

$2,400.00

$1,083.00

$1,774.00

$2,111.00

$2,050.00

$3,250.00

$22,933.00

$275,196.00

$2,400

$2,400

$2,400

$2,400

$2,400

$3,250

$2,400

$2,400

$2,400

$2,400

$2,400

$3,250

$30,500

$366,000

MONTHLY

ANNUALLY

Renovated Interiors / Courtyard Entry / Private-Public Ourtdoor Space

Renovated Interiors / Courtyard Entry



Renovated Interiors / Courtyard Entry / Private-Public Ourtdoor Space



Courtyard Entry


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R E N TC O M P A R A B L E S

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RENT COMPARABLES MAP

1)

2)

3)

4)

5)

6)

4018 Monroe Street

3324 Descanso Drive

851 North Dilon Street

740 North Occidental Blvd.

826 Maltman Avenue

826 Hyperion Avenue

806 Tularosa Drive

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RENT COMPARABLESONE BEDROOM

Property UnitsYearBuilt Owner / Manager

806 Tularosa DriveLos Angeles, CA 90026

1

2

3

4

5

6

7

12

7

13

5

3

4

6

1924

1926

1928

1956

1922

1930

1956

Rent SF Rent/SF

4018 Monroe StreetLos Angeles, CA 90026

3324 Descanso Drive Los Angeles, CA 90026

851 North Dillon StreetLos Angeles, CA 90026

740 North Occidental Blvd Los Angeles, CA 90026

826 Maltman Avenue Los Angeles, CA 90026

$2,400

$2,500

$2,495

$2,300

-

-

-

-

975

800

700

-

-

-

-

$2.56

$3.11

$3.28

-

-

-

Priavet OwnerOwner Managed

AVERAGE:

4018 Monroe St Partners Llc, Owner Managed

Private OwnerOwner Managed




$2,431

$2,500$2,300

HIGH: LOW:

825

975700

$3.81

$4.33$3.39


826 Hyperion AvenueLos Angeles, CA 90029

TWO BEDROOM

Rent SF Rent/SF

$3,250

-

-

-

$3,500

$3,250

$3,175

-

-

-

-

1400

1230

925

-

-

-

-

$2.50

$2.64

$3.43

$3,308

$3,500$3,175

1185

1400925

$2.85

$3.43$2.50

*(All Units Have 1 Bath)

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8 0 6T U L A R O S A

D R I V E

RICH JOHNSMultifamily Investment Advisor

[email protected]

CalBRE Lic. #01432215

806 TULAROSA DRIVE - LoopNet · 1 806 TULAROSA DRIVE 12-UNIT INVESTMENT OPPORTUNITY IN SILVER LAKE RICH JOHNS Multifamily Advisor T 818.432.1575 [email protected] EXCLUSIVELY LISTED

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