offering memorandum COMMERCIAL REAL ESTATE 30 unit hollywood multifamily investment opportunity 1987 construction The hillpointe 2330 N. Cahuenga Boulevard Los Angeles, CA, 90068
Feb 01, 2021
offeringmemorandum
C O M M E R C I A L R E A L E S TA T E
30 unit hollywood
multifamily investment
opportunity
1987 construction The
h illpoi nte 2330 N. Cahuenga Boulevard
Los Angeles, CA, 90068
2330 N. Cahuenga Boulevard Los Angeles, CA 90068
The hillpoi nte
Listing AgentsJake ZacutoManaging [email protected] #01377441
benjamin [email protected] #02069968
Jackie lubranoVice [email protected] #02024601
Disclaimer: No warranty,
express or implied, is made
as to the accuracy of the
information contained herein.
This information is submitted
subject to errors, omissions,
change of price, rental or
other conditions, withdrawal
without notice. All parties who
receive this material should
not rely on it, but should use it
as a starting point of analysis,
and should independently
confirm the accuracy of the
information contained herein
through a due diligence
review of the books, records,
files and documents that
constitute reliable sources
of the information described
herein. Logos and images are
for identification purposes
only and may be trademarks
of their respective companies.
All terms provided are
approximate. Buyer to verify.
6/2020
SUMMARY 1
PROPERTY OVERVIEW 3
AREA OVERVIEW 5
FINANCIAL SUMMARY 8
COMPS 10
Benjamin Gribnau
Director
424-322-9309
BRE #02069968
Leor BinshtockSenior Vice [email protected] #01773798
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2330 N. Cahuenga Boulevard
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SUMMARYZacuto Group is pleased to present the opportunity to acquire a 1987 construction 30 unit multifamily property, which is not subject to Los Angeles Rent Stabilization Ordinance (LA Rent Control), at 2330 N. Cahuenga Boulevard, in Hollywood, CA.
Situated on a 0.30-acre lot, the 26,715 square foot building consists of 10 one bedroom/one bath units, 2 one bedroom/one bath + loft units, 13 two bedroom/two bath units, and 5 two bedroom/two bath + loft units.
This is a unique opportunity to acquire a well-maintained Hollywood asset with rental upside and a potential to convert loft space to additional bedrooms (buyer to verify).
The Hillpointe Apartments offers an attractive mix of amenities including central HVAC, in-unit laundry within 21 of the units, an upgraded fitness center, laundry room, common lounge areas, landscaped grounds and gated garage parking. The property is centrally located with fantastic proximity to all the nightlife, concert venues, renowned restaurants, and coffee shops that Hollywood has to offer.
Price $12,995,000Price/Unit $433,167Price per SF: $486Cap Rate 4.3%GRM 15Units 30Year Built 1987Building Size 26,715 SFLot Size 13,192 SFParking Spaces 55
2330 N. Cahuenga Boulevard Los Angeles, CA
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Assumable loan of $7,850,000 at 4% interest
only, 2 years remaining
1987 Construction - Not subject to Los Angeles Rent
Stabilization Ordinance (RSO)
Under Market Rents
7 loft to bedroom conversion opportunities*
Ratio Utilities Billing System (RUBS)
implemented to charge tenants directly for water
OVERVIEW
*buyer to confrim 1
2330 N. Cahuenga Boulevard
Los Angeles, CA
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THE OFFERINGA well positioned 30-unit multifamily investment
property located in Hollywood, CA, one of the premier housing markets in Los Angeles.
THE PROPERTYThe Hillpointe Apartments are comprised of one and
two-bedroom floor plans with central HVAC, upgraded lighting and private outdoor space. Many units have
been updated with granite and stainless steel kitchens and in-unit washer/dryers. Residents enjoy a wide
range of amenities including secured building access, common area lounge with BBQ, updated fitness center,
additional laundry facilities, and garage parking.
CENTRAL HOLLYWOOD LOCATION The Hillpointe Apartments are centrally located near
many of Hollywoods most popular attractions including the Hollywood Bowl, Universal Studios, Griffith Park, Runyon Canyon, The Greek Theatre, the LA Zoo, the
famed Hollywood Sign, and exceptional entertainment and retail along Hollywood Boulevard.
VALUE-ADD OPPORTUNITY A unique opportunity to acquire a well maintained asset with significant rental upside. Additionally, 7
of the units have loft spaces which can be converted into additional bedroom configurations allowing for a
substantial value add opportunity. (Buyer to verify)
OVERVIEW
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• Light and bright apartments with central HVAC, many with in-unit washer/dryers, granite and stainless steel kitchens, upgraded LED lighting and fresh paint
• All units offer private outdoor space
• Newly upgraded and renovated elevator
• Common areas include: Patio with BBQ, laundry facility and fitness center
• 55 gated and covered parking spaces
PROPERTY OVERVIEW
UNIT TYPE UNITS BEDROOMS UNIT SF TOTAL SF
private patio
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property Summary
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z a c u t o g r o u p. c o m | 3 1 0 - 4 6 9 - 9 3 0 0Loft space bedroom
exterior
The hillpoi nte 2330 N. Cahuenga Boulevard
Los Angeles, CA
common bbq space
interiorVirtually staged rendering
property overview
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2330 N. Cahuenga Boulevard
Los Angeles, CA
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AREA OVERVIEWH O L LY W O O D , C A L I F O R N I AHollywood interconnects the entertainment industry from the San
Fernando Valley through the greater Westside. Home to the film industry
and many historic studios, Hollywood has become a melting pot for all.
With a mix of amenities including renowned restaurants and high end
retail, the area is undergoing an extensive revitalization, transforming into a
truly dynamic live/work/play environment.
2330 N. Cahuenga Boulevard Los Angeles, CA
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area overview
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2330 N. Cahuenga Boulevard
Los Angeles, CA
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HOLLYWOOD BOULEVARD/
WALK OF FAME
HOLLYWOOD BOWL
HOLLYWOOD SIGN
HOLLYWOOD & HIGHLAND
GRIFFITH PARK
FRANKLIN VILLAGE
UNIVERSAL CITY
Charming stretch of shoppes, restaurants and theatres known to as one of Hollywoods best kept secrets; attracting celebrities, studio executives and hip locals.
World renowned a film studio and theme park, attracting over 9 millions visitors last year. The rides and attractions are based on popular movies or television shows with the most recent addition of Harry Potter World.
Iconic amphitheater in the Hollywood Hills, hosting some of the worlds most recognized entertainers. It was named one of the 10 best live music venues in America by Rolling Stone magazine in 2018.
An American landmark and cultural icon overlooking Hollywood, Los Angeles. A world recognized beacon of the entertainment capital.
Entertainment destination includes The Chinese Theatre, Walk of Fame, designer shops, nightlife & restaurants.
The Central Park of Los Angeles, where winding trails fill with trendy joggers and local adventurers. The park is home to the Griffith Observatory, the LA Zoo, and the Griffith Park Golf Course.
A Los Angeles cultural icon, with museums, landmarks and other Hollywood attractions that celebrate L.A.’s rich film and entertainment heritage. The boulevard has evolved from a tourist attraction stop, to a sought after neighborhood known for its eclectic mix of restaurants, bars and theaters.
5 minute bike ride / 15
minute walk to Hollywood/
Highland Metro Station
Location highlights
6
hollywood walk of fame
franklin avenue
N. Highland avenue
The hillpoi nte 2330 N. Cahuenga Boulevard
Los Angeles, CA
franklin village
musso & frank grillpig & whistle
roosevelt hotel
no vacancy
dream hotel
mama shelter
hotel cafe
dirty laundryhollywood & highland
whitley market
yamashiro
hollywood bowl
ford theatre
beachwood dr
magic castle
franklin avenue
cahuenga boulevard
Universal studios
madera kitchen
cleo hollywood
capital records
hollywood boulevard
n. cahuenga boulevard
highl
and a
venu
e
playhouse
101
101
2330 N. Cahuenga Boulevard
Los Angeles, CA
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15,000+Estimated Residents
by 2022
$4.8B+Invested in the development of the
area since 2000
$1BExpected
development
5MNumber of
Emplyees throughout Los Angeles
36Median
Resident Age
100%Increase in residential units
from 2015 - 2022
$97KAverage household income
1.1M+Riders on the Hollywood/Highland Metro Annually
Hollywood continues to be a dynamic neighborhood growing in both popularity and population as new developments take shape. Driven by local jobs, educational institutions, and accessible public transit, the demand for residential properties has surged.
Within the last 5 years, the convergence of technology and entertainment (known as ‘Techtainment’) has created an influx of interest in the area. With the proximity to established studios and the growth of new startups, Hollywood continues to evolve and attract high caliber talent.
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HOLLYWOOD BY THE NUMBERS
Source: Metro.net, LA Tourism and Convention Board, HPOA Board
THE ENTERTAINMENT CAPITAL OF THE WORLD
Trailer Park
Location highlights
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FINANCIALSUMMARY
financial summary
The hillpoi nte 2330 N. Cahuenga Boulevard
Los Angeles, CA
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2330 N. Cahuenga Boulevard
Los Angeles, CA
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Summary
Price: $12,995,000
Number of Units: 30
Cost Per Unit: $433,167
Price Per SF: $486
Current GRM: 15
Market GRM: 13
Current CAP: 4.3%
Current Cash on Cash: 4.7%
Market CAP: 5.4%
Market Cash on Cash: 7.5%
Approximate Age: 1987
Approximate Lot Size: 13,192
Approximate Net RSF: 26,715
Assumable Interest Only Loan - 2 Years Remaining
Loan To Value 60% Monthly Payment $26,167
Down Payment $5,145,000 Annual Payment $314,000
Loan Amount $7,850,000 Debt Coverage: 1.77
Interest Rate 4.00% Loan Term (yrs) 30
This information has been secured from sources we believe to be reliable but representations, or warranties, expressed or
implied, as to the accuracy of the references to square footage, land lines/boundaries and age are approximate. Buyer takes
responsibility for all information and bears all risk for any inaccuracies.
Not Subject To Rent Stabilization Ordinance (Los Angeles Rent Control)
Due to its 1987 construction, this property is not subject to Los Angeles
Rent Stabilization Ordinances (Los Angeles Rent Control) which would
typically limit rent increases to 3%-4% annually.
Per California state laws, rents at this property can be increased
annually by 5% plus the rate of inflation with a maximum of a 10%
annual increase. This allows the purchaser to quickly move occupied
units to market rent.
Scheduled Monthly IncomeUnit Mix Current Income Pro-Forma Income101 2+2 $2,385 $2,995
102 2+2 $2,275 $2,995
103 2+2 + Patio $2,525 $3,095
104 1+1 + Patio $2,000 $2,395
105 1+1 + Patio $2,195 $2,395
106 1+1 + Patio $1,975 $2,395
107 1+1 + Patio $1,975 $2,395
108 2+2 $2,545 $2,995
109 2+2 $2,000 $2,995
110 2+2 $2,000 $2,995
201 2+2 $2,595 $2,995
202 2+2 $2,450 $2,995
203 2+2 $2,430 $2,995
204 1+1 (Manager) $0 $0
205 1+1 $1,975 $2,295
206 1+1 (Vacant) $2,295 $2,295
207 1+1 $1,895 $2,295
208 2+2 $2,600 $2,995
209 2+2 (Vacant) $2,995 $2,995
210 2+2 $2,375 $2,995
301 2+2 + Loft $2,100 $3,495
302 2+2 + Loft $2,805 $3,495
303 2+2 $2,375 $2,995
304 1+1 + Loft $2,325 $2,495
305 1+1 + Loft $2,275 $2,495
306 1+1 $1,880 $2,295
307 1+1 (Vacant) $2,295 $2,295
308 2+2 + Loft (Vacant) $3,495 $3,495
309 2+2 + Loft $2,895 $3,495
310 2+2 + Loft (Vacant) $3,495 $3,495 Other Income* $2,761 $2,761
Monthly Scheduled Gross Income: $72,186 $85,316
Annual Scheduled Gross Income: $866,228 $1,023,788
Annualized ExpensesCurrent* Pro-Forma
Estimated
Taxes 1.2011% $156,081 $156,081
Insurance $10,275 $10,275
Utilities $49,043 $49,043
Repairs & Maint $19,500 $19,500
Pest Control $3,603 $3,603
Management Fee (4%) $34,649 $40,952
Landscaping $5,969 $5,969
Misc./Reserves $7,500 $7,500
Total Expenses $286,620 $292,923
Per Net Sq. Ft: $10.73 $10.96
Per Unit $9,554 $9,764
Annualized Operating DataCurrent Pro Forma
Scheduled Gross Income: $866,228 $1,023,788
Less: Vacancy Reserve: $24,993 3.00% $29,720 3.00%
Gross Operating Income: $841,235 $994,068
Less: Expenses: $286,620 34.07% $292,923 29.47%
Net Operating Income: $554,614 $701,145
Less: Loan Payments: $314,000 $314,000
Cash Flow After Debt Service: $240,614 4.68% $387,145 7.52%
Plus: Principal Reduction: $- $-
Total Return Before Taxes: $240,614 4.68% $387,145 7.52%
*Includes Application Fees, Laundry, Parking/Storage, Pet Rent, Revenue Share, Late Fees, RUBS, and NSF Fees.
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3153 BARBARA CT HOLLYWOOD HILLS
SALE PRICE: $6,100,000BUILT: 1950UNITS: 18CAP: 4.00%
5643 CARLTON WAY CLOVER ON CARLTON
SALE PRICE: $7,850,000BUILT: 1965UNITS: 24
CAP: 3.83%
1522 N FORMOSA AVE SUNSET FORMOSA
SALE PRICE: $12,336,000BUILT: 1985UNITS: 36
CAP: 4.19%
1837 N LA BREA AVE
SALE PRICE: $6,090,000BUILT: 1958UNITS: 15CAP: 4.25%
7057 LANEWOOD AVE PINEWOOD LANE APARTMENTS
SALE PRICE: $10,250,000BUILT: 1991UNITS: 26CAP: 2.59%
1420 N MANSFIELD AVE EME MANSFIELD
SALE PRICE: $11,800,000BUILT/RENO: 1991/2017UNITS: 35CAP: 4.16%
10650-10656 MOORPARK ST CHATEAU TOLUCA
SALE PRICE: $16,425,000BUILT: 1991UNITS: 40CAP: 4.02%
SALE COMPS
1 2 3
7654
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2
3
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sales comparison
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The hillpoi nte 2330 N. Cahuenga Boulevard
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2330 N. Cahuenga Boulevard
Los Angeles, CA
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2054 N. ARGYLE AVE
RENT: $2,350UNIT TYPE 1 BEDROOM
2026 ARGYLE AVE
RENT: $2,295UNIT TYPE 1 BEDROOM
7280 HILLSIDE AVE
RENT: $2,600
UNIT TYPE 1 BEDROOM
6543 FRANKLIN AVE
RENT: $2,295UNIT TYPE 1 BEDROOM
2177 ARGYLE AVE
RENT: $2,300UNIT TYPE 1 BEDROOM
2037 N LAS PALMAS AVE
RENT: $2,350UNIT TYPE 1 BEDROOM
LEASE COMPS
1 BEDROOM
1 2 3
654
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lease comparison
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The hillpoi nte 2330 N. Cahuenga Boulevard
Los Angeles, CA
on market comparables
2330 N. Cahuenga Boulevard
Los Angeles, CA
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2104 N CAHUENGA BLVD
RENT: $3,505UNIT TYPE 2 BEDROOM
1802 WHITLEY AVE
RENT: $3,395UNIT TYPE 2 BEDROOM
2218 BEACHWOOD DR
RENT: $2,995
UNIT TYPE 2 BEDROOM
1950 TAMARIND AVE
RENT: $3,496UNIT TYPE 2 BEDROOM
1930 N BRONSON AVE
RENT: $3,300UNIT TYPE 2 BEDROOM
6752 HILLPARK DR
RENT: $3,500UNIT TYPE 2 BEDROOM
LEASE COMPS
2 BEDROOM
1 2 3
654
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lease comparison
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Los Angeles, CA
on market comparables
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2330 N. Cahuenga Boulevard
Los Angeles, CA
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E L E V A T E Y O U R P E R S P E C T I V E
LEASING | INVESTMENTS | ADVISORY
The team
1 0 2 5 0 C O N S T E L L A T I O N B L V D
S U I T E 2 7 7 0
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C O M M E R C I A L R E A L E S TA T E
Jake ZacutoManaging [email protected] #01377441
Leor BinshtockExecutive Vice [email protected] #01773798
Matt [email protected] #02079289
Richard RamerVice [email protected] #02053543
Doug FillmoreSenior [email protected] #02092675
Andrew SinasohnExecutive Vice [email protected] #01951740
Jackie LubranoVice [email protected] #02024601
Connor SearsSenior [email protected] #02010505
Michael SpiegelMarketing [email protected]
Benji [email protected] #02069968
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