N. CATALINA AVENUE PASADENA, CALIFORNIA 103 OFFERING MEMORANDUM NICHOLAS BORRELLI NICHOLAS BORRELLI
N. CATALINA AVENUE
PASADENA, CALIFORNIA
103
OFF
ERIN
G M
EMO
RAN
DUM
NICHOLAS BORRELLI
NICHOLAS BORRELLI
STATEMENT OF CONFIDENTIALITY & DISCLAIMER
Coldwell Banker Commercial NRT “CBC” has been engaged as the exclusive financial advisor to the Seller in connection with the Seller’s solicitation of offers for the purchase of the property know as Catalina Cottages located at 103 N Catalina Avenue, in the City of Pasadena, County of Los Angeles, State of California (the “Property”). The Prospective purchasers are advised that as part of the solicitation process, Seller will be evaluating a number of factors including the current financial qualifications of the prospective purchaser. Seller expressly reserves the right in its sole and absolute discretion to evaluate the terms and conditions of any offer and to reject any offer without providing a reason therefore. Further, Seller reserves the right to terminate the solicitation process at any time prior to final execution of the Purchase Agreement.The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property, and it is not to be used for any other purpose or made available to any other person without the express or written consent of Seller or CBC. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by CBC from sources it deems reasonably reliable. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and qualified in their entirety by the actual document to which they relate. No representation or warranty, expressed or implied, is made by the Seller, CBC, or any of their respective affiliates as to the accuracy or completeness of the information
contained herein. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence, including engineering and environmental inspections to determine the condition of the Property and the existence of any potential hazardous material located at the Property site or used in the construction or maintenance of the building at the Property site.A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an execute Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against the Seller or CBC or any of their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing sale of the Property.Prospective purchasers are not to construe the contents of the Offering Memorandum or any prior or subsequent communication form CBC or Seller of their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents as legal, tax, or other advice. Prior to submitting an offer, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment.
TABLE OF CONTENTSExecutive SummaryProperty Details Investment Highlights
Area MapPasadenaNeighborhood Surrounding
Proposal Price
ABOUT THE INVESTMENT
AREA OVERVIEW
OFFERING PROCEDURE
N. CATALINA AVENUEPASADENA, CALIFORNIA
103
PRESENTED BY: NICHOLAS BORRELLI626.484.7975 | [email protected]# 01481673
PROPERTY SUMMARY REPORTOFFERING
PROPERTY SPECIFICATIONSYear Built:Units:NRSF:Floors:Market Segment:Price:
19258Approx. 8,996 SF1All$2,450,000
Coldwell Banker Commercial NRT-Arcadia is pleased to announce the Exclusive listing of the Catalina Cottages. The offering consists of 8 units: 1 two-bedroom one-bath and 7 single units. The property has gone through major renovations. Most of the single units have been renovated. This will give the new investor upside with the other two units to be renovated. The property is gated and secured and offers individual parking garages for the tenants. The property is located adjacent to Pasadena’s premier South Lake district. The proximity to the South Lake district and Metro Station nearby, gives the new investor the leverage to increase rents to hedge against inflation. The demand for rental units in the South Lake district has increased in the last 24 months, due to the increase in employment in the financial sector of the South Lake district.
103N. CATALINA AVENUEPASADENA, CALIFORNIA NICHOLAS BORRELLI
EXECUTIVE SUMMARY
Year BuiltNumber of UnitsNRSF:
Financing:LTVInterest Rate/Loan Constant:Amortization Period:Debt Service:Current Cash on Cash
Price:Per Unit:Per SF: Current Cap Rate:Pro Forma Cap Rate:Current GRM:Pro Forma GRM:
19628 UnitsApprox 3,270 SF
$1,300,00053.06%4.00%30 yrs$52,0003.04%
$2,450,000$306,250$749.243.55%4.56%17.4814.90
Property Address 103 N. Catalina Avenue
This offering is subject to prior placement, withdrawal, cancellation, or modification without notice. The information contained herein has been carefully compiled from sources we consider reliable, and while not guaranteed as to completeness or accuracy, we believe it to be correct as of this date. The proforma revenues and expenses set forth in this brochure do not constitute a representation, warranty, or guaranty of any of the numbers set forth herein or of any economic value attributable to the property or income that may be derived therefrom. Independent estimates of proforma revenues and expenses should be developed before any decision is made on whether to invest in the property.
PRESENTED BY: NICHOLAS BORRELLIColdwell Banker Commercial [email protected]# 01481673
NICHOLAS BORRELLI
OFF
ERIN
G M
EMO
RAN
DUM
PRICING
FINANCING
Price:Per Unit:Per SF: Current Cap Rate:Pro Forma Cap Rate:Current GRM:Pro Forma GRM:
$2,450,000$306,250$749.243.55%4.56%17.4814.90
Financing:Interest Rate/Loan ConAmortization Period:Interest Only:Debt Service:Loan ConstantCurrent Cash on Cash:
$1,300,0004.00%30 yrsYes$52,0004.00%3.04%
NICHOLAS BORRELLI
$
PRESENTED BY: NICHOLAS BORRELLI626.484.7975 | [email protected]# 01481673
UNIT NO. UNIT TYPE CURRENTRENT
SQUARE FEET
NO. OF UNIT PRO FORMARENT
MONTHLY TOTAL
% UPSIDEMONTHLYTOTAL
12345678
Single/StudioSingle/StudioSingle/StudioSingle/StudioSingle/StudioSingle/StudioSingle/Studio2 Bedroom
$1,400$1,396$1,400$1,450$1,400$1,400$1,035$2,200
$1,400$1,396$1,400$1,450$1,400$1,400$1,035$2,200
375 SF375 SF375 SF375 SF375 SF375 SF375 SF645 SF
1 Unit1 Unit1 Unit1 Unit1 Unit1 Unit1 Unit1 Unit
$1,600$1,600$1,600$1,600$1,600$1,600$1,600$2,500
14.29%14.61%14.29%10.34%14.29%14.29% 54.59%13.64%
$1,600$1,600$1,600$1,600$1,600$1,600$1,600$2,500
TOTAL $1,4603,270 SF8 UNITS $1,713 $13,700 17.28%$11,681
Potential Gross RevenueVacancy
Net Effective RentOther Income
PER SF PER SFPER UNITCURRENT PRO FORMA PER UNIT %PGR/EGR%GR/EGR
$15,522($2,190)
$15,331$38
$42.87 ($5.36)
$37.51 $0.09
$140,177($17,522)
$122,651$300
$164,400$0.00
$164,400$750
$20,550$0.00
$20,550$94
$50.28$0.00
$50.28$0.23
100.00%0.00%
100.00%0.46%
100.00%(12.50%)
87.50%0.21%
EFFECTIVE GROSS RENT $37.60$15,369$122,951 $165,150 $20,644 $50.50 100.46%87.71%
UNIT ANALYSIS
PRESENTED BY: NICHOLAS BORRELLI626.484.7975 | [email protected]# 01481673 NICHOLAS BORRELLI
Single/Studio1 Bedroom2 Bedroom3 Bedroom
CURRETRENT
% UPSIDEUNIT SFNO. OF UNITSUNIT TYPE PRO FORMARENT
MONTHLY TOTAL
MONTHLY TOTAL
2,625 SF0645 SF0
$9,481$0$2,200$0
7 Units0 Units1 Units0 Units
$11,200$0$2,500$0
$11,200$0$2,500$0
136.69%0.00%13.64%0.00%
$9,481$0$2,200$0
TOTAL/AVERAGE $1,4603,270 SF8 UNITS $1,713 $13,700 17.28%$11,681
SINGLE/STUDIO1 BEDROOM2 BEDROOM3 BEDROOM
SINGLE/STUDIO 1 BEDROOM 2 BEDROOM 3 BEDROOM TOTALAVERAGE
87%
160.00%140.00%120.00%100.00%80.00%60.00%40.00%20.00%0.00%
13%
UNIT ANALYSIS
EXPENSE$145$31,250$600$500$3,500
GardnerProperty TaxManagementElectricity, Water TrashInsurance
$18$3,906$75$63$438
1.16%18.92%5.09%5.09%2.12%
$0.04$9.56$0.18$0.15$1.07
0.10%25.42%0.49%0.41%2.85%
$1,920$31,250$8,400$8,400$3,500
$240$3,906$1,050$1,050$438
$0.59$9.56$2.57$2.57$1.07
TOTAL EXPENSES
NET OPERATING INCOME
CASH FLOW
DEBT SERVICE
$11.01
$26.59
$10.69
$15.90
$4,499
$10,869
$4,369
$6,500
$35,995
$86,956
$34,956
$52,000
$53,470
$111,680
$59,680
$52,000
$6,684
$13,960
$7,460
$6,500
$16.35
$34.15
$18.25
$15.90
32.38%
67.62%
36.14%
31.49%
29.28%
70.72%
28.43%
42.29%
• GATED & SECURED ACCESS• PRIVATE BACKYARDS• SHOP’S ON LAKE AVENUE• 90% OF UNITS ARE FULLY REMODELED • LAUNDRY IN MOST OF EACH UNIT• CLOSE APPROXIMATELY TO METRO STATION• COZY FRONT PORCH• WALK SCORE 96
103N. CATALINA AVENUEPASADENA, CALIFORNIA NICHOLAS BORRELLI
103 N. CATALINA AVENUEPASADENA, CALIFORNIA
8 UNITS7 (0+1) | 1 (2+1)
5-CAR GARAGE
Approx. 3,270 SFApprox. 8,996 SF LOT
$2,450,000$
NICHOLAS BORRELLI
PRESENTED BY: NICHOLAS BORRELLI626.484.7975 | [email protected]# 01481673
Living Here
The Playhouse District has something for everybody. The community is surrounded by educational institutions, sports & recre-ational facilities, theaters and world class dining.
Education
Walkability is key in the Playhouse District. Living here means being within walking distance to elementary and secondary schools, colleges, and notable universities such as the Fuller Seminary, Le Cordon Bleu, and the California Institute of
Technology.
Fuller Seminary Fuller Theological Seminary
is the largest multi-denominational seminary in the world. A leading Christian theological institution known for its academic rigor and ethnic and denominational diversity, Fuller has over 4,300 students from over 67 coun-tries and 108 denominations.
Le Cordon Bleu College of Culinary Arts
Le Cordon Bleu College of Culinary Arts is a respected culinary and hospitality school founded in 1994. Its faculty includes highly respected, experienced chefs who have the ability to turn out confident and successful graduates. Le Cordon Bleu College of Cu-linary Arts offers specialized training be-cause of its partnership with the renowned Le Cordon Bleu, the leading authority on culinary techniques, training, and develop-ment around the world.
California Institute of Technology (Caltech)
Caltech is a private, coeducational research university with only about 2,100 students (about 900 undergraduates and 1200 grad-uate students), but is ranked in the top 10 universities worldwide by metrics such as Science Watch, Nobel Prizes, and general university rankings.
North-West College
North-West College is an accredited med-ical and dental vocational college offering Pharmacy Technician, Vocational Nurse LVN, Medical Assistant, Insurance Biller, Dental Assistant and Massage Therapy programs.
PASADENA, CALIFORNIA
REGIONAL EMPLOYMENT, POPULATION AND INCOMEEmployment
The unemployment rate in Pasadena, California, is 4.60%, with job growth of 1.37%. Future job growth over the next ten years is predicted to be 38.15%.with median household income in 2017 of $70,845.
Pasadena has a solid job history in the financial industry with 47% of the population working in the financial or business market. The Pasadena job market is expected to grow 1.5% faster than the California average and 3% faster than the national average. The science and technology industries are also expected to create job market growth with the local industries boosting job creation. CalTech and Jet Propulsion systems continue to feed the local economy.
Housing Units
As shown below, LA County has a higher median household income compared to California as a whole. While Pasadena is currently ahead of the pack with re-gards to median incomes, the rate of income growth in Pasadena over the past four quarters has outpaced most other submarkets. This growth is a combination of the technology industry coming out of Cal Tech, closeness to the downtown Los Angeles boom and the infusion of foreign investment into this market.
Mortgage Rates
As of September 2017, the average 30-year fixed mortgage rate was 4.15%. Low mortgage rates have corresponded with an uptick and increase in new housing starts over the past three years, showing the first substantial recovery since 2007.
PASADENA, CALIFORNIA
Demand continues to trend upward in the San Gabriel Valley, as affordability pressures on the Westside and in Central LA push more and more renters to the metro’s peripheral bedroom communities. Market fundamentals have been very strong in recent years, outside of some supply-driven vacancy volatility. Rent growth remains slightly higher than the overall LA average, though rent levels still trail the metro average by around 20%. The relatively low housing costs here are an important demand driver in a Los Angeles, where the residential market is defined by its unaffordability.
Given the size of the submarket and persistent demand for multifamily housing in the region, construction remains relatively limited. The majority of new development here is centered around transit-oriented communities in Monrovia and El Monte, and single family zoning is prevalent in many parts of the submarket. Investors priced out of LA’s premiere submarkets continue to scour the San Gabriel Valley. Average pricing continues to push into uncharted territory, and sales volume in 2018 was near an all-time high.
12 MO. DELIVERED UNITS 12 MO. ABSORPTION UNITS
266 196VACANCY RATE 12 MO RENT GROWTH
3.7% 3.2%
4 & 5 Star3 Star1 & 2 Star
Vacancy Change (YOY)Absorption UnitsDelivered UnitsDemolished UnitsAsking Rent Growth (YOY)Effective Rent Growth (YOY)Sales Volume
3,15614,65143,651
0.1%19626673.2%3.2%$740M
9.0%4.3%3.1%
4.1%97147142.6%2.5%$418.5M
$2,170$1,787$1,415
4.1%1487131.4%1.5%N/A
$2,127$1,768$1,408
5.5%761800627.2%7.1%$834.0M
212(4)
2009 Q22016 Q22015 Q22011 Q22001 Q12001 Q12019 Q2
000
2.6%(775)00-7.6%-7.6%$119.9M
208430
2000 Q42008 Q42014 Q12019 Q12009 Q42009 Q42010 Q1
CURRENT QUARTER
ANNUAL TREND
KEY INDICATORS
SUBMARKET 61,458 193.7% $1,573 0 251$1,587
UNITS
12 MONTHS
VACANCY RATE
HISTORICAVERAGE
ASKING RENT
FORECASTAVERAGE
EFFECTIVERENT
PEAK
ABSORPTIONUNITS
WHEN
DELIVERIES UNITS
TROUGH
UNDERCONSTR. UNITS
WHEN
103N. CATALINA AVENUEPASADENA, CALIFORNIA NICHOLAS BORRELLI
STRONG AREADEMOGRAPHICS
2019 Total Population:2024 Population:Pop Growth 2019-2024:Average Age
Median Home Value:Median Year Built
2019 Total Households:HH Growth 2019-2024:Median Household Inc: Avg Household Size: 2019 Avg HH Vehicles
24,96425,3081.38%41.00
12,8701.19%$90,0711.901.00
86,4421.10%$75,8702.502.00
207,6550.83%$71,8082.802.00
2000 Census
2010Census
2019Estimate
2024Projection
$823,3791968
$811,2951958
$753,1891957
223,194225,8041.17%39.50
591,549597,0640.93%39.90
RADIUSPOPULATION
HOUSING
POPULATION BY RACE
1 MILE 3 MILE 5 MILE
25.5
25.0
24.5
24.0
23.5
23.0
22.5
22.0
21.5
21.0
20.5
STRONG AREADEMOGRAPHICS
2019 Total Population:2024 Population:Pop Growth 2019-2024:Average Age
Median Home Value:Median Year Built
2019 Total Households:HH Growth 2019-2024:Median Household Inc: Avg Household Size: 2019 Avg HH Vehicles
24,96425,3081.38%41.00
12,8701.19%$90,0711.901.00
86,4421.10%$75,8702.502.00
207,6550.83%$71,8082.802.00
$823,3791968
$811,2951958
$753,1891957
223,194225,8041.17%39.50
591,549597,0640.93%39.90
RADIUSPOPULATION
HOUSING
POPULATION BY RACE
1 MILE 3 MILE 5 MILE
Retail & Wholesale
Financial/Insur/Real Estate
Services
Information
Health Care & Social Assistance
Manufacturing
Construction
Utilities & Waste Mgt
Public Admin & Sales
Agriculture, Mining & Fishing
0 10 20 30 40 50 60
OFFERS SHOULD BE ADDRESSED TO:
C. 626.484.7975D. [email protected] CalRE# 01481673
Offers should be in the form of a letter of intent (LOI) and at a minimum offers should include the following:
COLDWELL BANKER COMMERCIAL NRTAttn: Nicholas Borrelli15 E. Foothill BoulevardArcadia, CA 91006
1. Price2. Earnest Money Deposit3. Due Diligence Time Period4. Closing Period5. Any other substantial business points the buyer wants the seller
to know6. Final Round Buyer to Consultant7. Source of Funds8. The seller also reserves the unrestricted right to reject an or all
offers.
OFFERING PROCEDURES