2022 Eleanore Dr. Glendale, CA 91206 - Offering Memorandum
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Offering Memorandum 2022 Eleanore Dr. Glendale, CA 91206
Primary Contacts:
No warranty, express or implied, is made as to the accuracy of the information
contained herein. This information is submitted subject to errors, omissions,
Charles F. Dunn Jenny Eng change of price, rental or other conditions, withdrawal without notice, and is
subject to any special listing conditions imposed by our principals. Cooperating
brokers, buyers, tenants and other parties who receive this document should not
tel 626.204.1525 tel 626.204.1526 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
cdunn@naicapital.com jeng@naicapital.com due diligence review of the books, records, files and documents that constitute
reliable sources of the information described herein. Logos are for identification
purposes only and may be trademarks of their respective companies. NAI Capital,
CA #00965553 CA #01931224 Inc. CAL DRE Lic. #01990696.
Table of
Contents
5 Section 1
Company Information
11 Section 2
Property Information
17 Section 3
Location Information
24 Section 4
Financial Analysis
28 Section 5
Sale Comparables
33 Section 6
Demographics
35 Section 7
Sample Marketing
Company Information › NAI Capital Services › Company Profile 1 › Company Profile 2 › Company Profile 3 › Company Profile 4
1
COMPANY INFORMATION
NAI Capital Company Profile
7
1
COMPANY INFORMATION
NAI Capital Transaction Services
8
1
COMPANY INFORMATION
9
1
COMPANY INFORMATION
NAI Capital Client Services
10Property Information › Executive Summary › Additional Photos › Additional Photos › Additional Photos › Additional Photos
2
PROPERTY INFORMATION
Executive
Summary
Property Details Property Overview
Listing Price $4,900,000 2022 Eleanore Dr. is a 15 unit building that includes a 2-bedroom townhome making it ideal for an owner-user. In addition, the property
consists of seven 2-bedroom units and seven 1-bedroom units. Broker has only inspected the exterior of the property. Further
Units 15 inspections on the interiors and mechanical operations will be needed. The property allows an investor the opportunity to own a cash
flowing property that has been well maintained and is a turn key asset.
Cap Rate 3.82%
DO NOT DISTURB TENANTS - DRIVE BY ONLY. OFFERS SUBJECT TO INSPECTION.
GRM 16.86
NOI $187,316 Property Highlights
A unique opportunity to own a beautifully maintained apartment complex in the Chevy Chase Canyon area of Glendale.
Lot Size 16,201 SF
A turnkey, cash flowing asset.
Building Size 12,211 SF
Strong demographic in the area coupled with new development, low vacancy, and increased population projections all provide for a
Year Built 1983 robust outlook for rental growth.
Separate hot water heaters in each unit
Zoning GLR4
APN 5662-006-030
122
PROPERTY INFORMATION
Additional
Photos
132
PROPERTY INFORMATION
Additional
Photos
142
PROPERTY INFORMATION
Additional
Photos
152
PROPERTY INFORMATION
16Location Information › Regional Map › Location Maps › Aerial Map › Site Plan › Glendale Rent Ordinance
3
LOCATION INFORMATION
Regional
Map
183
LOCATION INFORMATION
Location
Maps
193
LOCATION INFORMATION
Aerial
Map
203
LOCATION INFORMATION
21To All Glendale Renters and Landlords!
GLENDALE
CITY HALL
Glendale Renters & Landlords
GLENDALE
CITY HALL
TH
E JE I TY
W EL C
TH
E JE I TY
I N C O R P O R A T E D W EL C
1 9 0 6
I N C O R P O R A T E D
1 9 0 6
GLENDALE RENTAL RIGHTS PROGRAM
The Glendale City Council has adopted Ordinance #5922 establishing new rights and responsibilities between
residential Landlords and Tenants in Glendale. The Ordinance provides greater protections to Tenants by expanding
the existing Just Cause Eviction program and by adding two new program elements consisting of a Right To Lease and
Renter Relocation Program.
Program changes consist of the following:
Right To Lease:
• Landlords must offer Tenants a written minimum one year lease at the time of a rent increase.
Important new law about rental housing for all Glendale Residents and Landlords.
Just Cause Eviction:
Նոր կարևոր օրենք վարձու բնակարանների մասին Գլենդելի բնակիչների և տանտերերի համար:
• Because lease offers are now mandatory under the Right To Lease program, the exemption of offering
Importante nueva ley sobre viviendas de alquiler para todos los Residentes y Propietarios de Glendale.
a one year lease under Just Cause Eviction was repealed.
Relocation:
Questions & Answers • Landlord must pay relocation benefits when a Tenant vacates a unit in response to a rent increase of
1. When does the new Ordinance take effect and how does it impact my rent? more than 7% in a twelve-month period.
The effective date of the Ordinance is March 14, 2019. However, on April 1, 2019, rents on all non-exempt units and units
constructed on or before February 1, 1995 must be rolled back to Base Rent levels established by Rent Freeze Ordinance
5919. The Base Rent is defined as the rental amount charged on September 18, 2018 plus any lawful rent increase up to 5%.
Any subsequent rent increase that exceeds 7% of the rent over the last 12 months may be subject to relocation payments.
Additionally, the first rent increase notice after March 14, 2019 must include an offer of a minimum 12 month lease.
RENT ROLLBACK PROVISION OF NEW ORDINANCE
2. What if I received a rent increase effective March 1, 2019? Effective April 1, 2019, rents on all non-exempt units must be rolled back to rent levels in effect on September 18, 2018,
If you received a lawfully served rent increase with an effective date of March 1, 2019, you are responsible for paying the new plus any lawful rent increases during the rent freeze period ending on February 27, 2019. Any subsequent rent increases
rent amount for the month of March 2019. that exceed 7% of the rent over the last 12 months may be subject to relocation payments. The rent rollback provisions
3. What if I am already under a one year lease? do not apply to units constructed after February 1, 1995.
The terms of your current lease do not change. After an existing lease expires, if a Landlord is proposing to increase rent, then
the Landlord must offer a new lease in conformance with the Glendale Rental Rights Program.
4. Are rent increases capped under the new Ordinance?
No, there is no limit to how much Landlords may increase rents. However, certain relocation payment requirements may be
EXEMPTIONS: The following are exempt from ALL program parameters.
triggered for rent increase above 7% over a 12 month period.
5. How are multiple rent increases considered in relation to the 7% relocation trigger?
Total rent increases cannot exceed 7% without triggering relocation. The 7% is calculated as the cumulative sum of all rent
Single Family Homes Condominiums or Townhomes Duplexes
increases for the prior twelve months.
For more frequently asked questions, visit GlendaleCA.gov/Rent Government Subsidized Units (Section 8) Accessory Dwelling Units (ADU)
GlendaleCA.gov/Rent Follow Us #MyGlendale
@MyGlendale February 2019
February 2019If my unit Right To Lease Just Cause Eviction Banking Provision
is a... Exempt from Requires Landlords who own The Just Cause Eviction Ordinance Allows Landlords to save any
Just Cause Eviction non-exempt properties to offer a protects Tenants from eviction which unused rent increases and apply
minimum one year (12 month) lease are not listed as one of the 12 legal it to future rent increases.
Single Family
Exempt from option to all Tenants at the time of rent reasons outlined in the Ordinance.
Home, Duplex,
Right to Lease increase. Within 14 days, Tenant must Reasons for eviction and other issues • Total bank can’t exceed
Townhome,
notify the Landlord of their rejection of relating to the termination of a tenancy 21%.
Condo, ADU
Exempt from the lease. Tenant’s failure to respond is can be found here: glendaleca.gov/
Relocation Assistance deemed rejection of the lease offer. If the justcause. • Landlords may not use
lease is rejected, Landlord and Tenant can their bank to increase the
negotiate a month-to-month or other type Any eviction not caused by the Tenant rent more than 15% in a
of lease agreement. is subject to relocation assistance 12 month period without
Subject to Eviction not caused by the Tenant Relocation = calculated at a rate of: triggering relocation.
Just Cause Eviction is subject to relocation assistance 2 x HUD FMR plus $1,000** Initial Lease Offer: When a Landlord
presents a Tenant with the first rent 2 x HUD Fair Market Rent plus $1,000.**
All non-exempt increase on or after March 14, 2019, they
Landlord must offer Landlord must provide minimum
units developed Subject to must offer a minimum one year lease
minimum 12 month lease 12 month renewal lease, 90 days
after Right to Lease and written notice of Tenant’s rights to
with proposed rent increase prior to expiration of current lease
February 1,1995 relocation assistance when providing Relocation Assistance
Exempt from notice of a rent increase.
Relocation Assistance Under certain conditions Tenants may be eligible for relocation assistance.
Subsequent Offers: When a Landlord
When applicable, Landlords shall pay one-half of the relocation assistance fee
and Tenant are negotiating a new lease
no later than 5 business days following receipt of written notice that the Tenant
agreement, the Landlord is required to
intends to vacate the rental unit and one-half of the relocation fee no later than
Subject to Eviction not caused by the Tenant Relocation = offer the Tenant a lease for one full year.
5 business days after the Tenant has vacated the unit.
Just Cause Eviction is subject to relocation assistance 2 x HUD FMR plus $1,000**
• If the Tenant accepts the lease offer,
Landlord must offer Tenant a new one
Exempt from year renewal lease 90 days prior to
Parcels Right to Lease expiration of that existing lease.
For rent increase 7% or less No relocation - Tenant can accept
consisting For more information or a copy of the Ordinance, please visit the
over a 12 month period rent increase or vacate unit
of 3-4 units Eligible for • If the Tenant rejects the lease offer City’s informational web page at GlendaleCA.gov/Rent.
Relocation Assistance* and enters into a month-to-month
agreement, the Landlord must offer If after reading this notice, you still have questions regarding
For rent increase more than Relocation =
Requires Rent Rollback a new minimum one year lease at the
7% over a 12 month period 3 x Current Rent the new Ordinance, please email Rent@GlendaleCA.gov or
on April 1, 2019* time of the first rent increase after the
first anniversary of the rejection. call (818) 548-3926.
Subject to Eviction not caused by the Tenant Relocation =
Just Cause Eviction is subject to relocation assistance 2 x HUD FMR plus $1,000**
Subject to Landlord must offer minimum 12 month lease with proposed rent increase Landlord must provide minimum 12 month lease renewal, 90 days prior to expiration of current lease
Right to Lease
Parcels
consisting For rent increase 7% or less No relocation - Tenant can accept
of 5+ units over a 12 month period rent increase or vacate unit
Eligible for
Relocation =
Relocation Assistance* YES Tenant qualifies for modified relocation
Is Tenant household income 3 x Proposed Rent
For rent increase more than
7% over a 12 month period over 130% of AMI?**
Relocation =
(currently $90,090) NO Tenant qualifies for full relocation
Requires Rent Rollback Years of Occupancy x Proposed Rent
on April 1, 2019*
0-3 years Proposed Rent x 3
*Only applies if the units were built on or before February 1, 1995. 3-4 years Proposed Rent x 4
4-5 years Proposed Rent x 5
**Area Median Income (AMI) and Fair Market Rent (FMR) are published annually by the Housing & Urban Development Department (HUD).
5+ years Proposed Rent x 6
For additional information visit, GlendaleCA.gov/Rent
February 2019 February 2019Financial Analysis › Financial Summary › Income & Expenses › Rent Roll
4
FINANCIAL ANALYSIS
Financial
Summary
Investment Overview
Listing Price $4,900,000
Price per Unit $326,666
GRM 16.9
CAP Rate 3.8%
Operating Data
Gross Scheduled Income $290,562
Other Income -
Total Scheduled Income $290,562
Gross Income $281,845
Operating Expenses $94,529
Net Operating Income $187,316
254
FINANCIAL ANALYSIS
Income &
Expenses
Income Summary Per SF
GROSS INCOME $281,845 $23.08
Expense Summary Per SF
Taxes $65,000 $5.32
Utilities $8,459 $0.69
Insurance $5,109 $0.42
Repairs and Maintenance $4,000 $0.33
Management (Projected) $11,361 $0.93
Gardening $600 $0.05
GROSS EXPENSES $94,529 $7.74
NET OPERATING INCOME $187,316 $15.34
264
FINANCIAL ANALYSIS
Rent
Roll
Unit Unit Unit Current Market
Number Bed Bath Rent Rent
100* 2 2 $3,500 $3,500
101 1 1 $1,470 $1,800
102 1 1 $1,391 $1,800
103 1 1 $1,400 $1,800
104 1 1 $1,212 $1,800
105 2 1 $1,706 $2,400
106 2 1 $1,758 $2,400
107 2 1 $1,706 $2,400
201 1 1 $1,249 $1,800
202 1 1 $1,522 $1,800
203 1 1 $1,391 $1,800
204 1 1 $1,496 $1,800
205 2 1 $1,601 $2,400
206 2 1 $1,732 $2,400
207 2 1 $1,575 $2,400
Totals/Averages $24,713 $32,300
* Owner's townhouse unit - Can be vacated at close of escrow
27Sale Comparables › Sale Comps › Sale Comps Summary › Sale Comps Map
5
SALE COMPARABLES
Sale
Comps
SUBJECT PROPERTY
2022 Eleanore Dr. | Glendale, CA 91206
Sale Price: $4,900,000 Year Built: 1983
Price PSF: $401.28 Building SF: 12,211 SF
No. Units: 15 Price / Unit: $326,667
Cap: 3.82% GRM: 16.86
NOI: $187,316
1 609 N JACKSON ST.
609 N Jackson St. | Glendale, CA 91206
Sale Price: $6,300,000 Year Built: 1985 1
Building SF: 19,300 SF Price PSF $326.42
No. Units 18 Price / Unit $350,000
Closed: 07/02/2019
2 1470 E WILSON AVE
1470 E Wilson Ave | Glendale, CA 91206
Sale Price: $5,875,000 Year Built: 1972 2
Building SF: 14,831 SF Price PSF $396.13
No. Units 23 Price / Unit $255,434
Closed: 05/01/2019
295
SALE COMPARABLES
Sale
Comps
3 1111 E LEXINGTON DR.
1111 E Lexington Dr. | Glendale, CA 91206
Sale Price: $7,900,000 Year Built: 1973 3
Building SF: 19,641 SF Price PSF $402.22
No. Units 29 Price / Unit $272,413
Closed: 04/05/2019
4 210 N BELMONT ST
210 N Belmont St | Glendale, CA 91206
Sale Price: $7,995,000 Year Built: 1986 4
Building SF: 22,661 SF Price PSF $352.81
No. Units 20 Price / Unit $399,750
Closed: 10/22/2018
305
SALE COMPARABLES
Sale Comps
Summary
Subject Property Price Bldg. SF Price/SF Price/Unit # Of Units
2022 Eleanore Dr. $4,900,000 12,211 SF $401.28 $326,667 15
Glendale, CA 91206
Sale Comps Price Bldg. SF Price/SF Price/UNIT # Of Units Close
1 609 N Jackson St. $6,300,000 19,300 SF $326.42 $350,000 18 07/02/2019
Glendale, CA 91206
2 1470 E Wilson Ave $5,875,000 14,831 SF $396.13 $255,434 23 05/01/2019
Glendale, CA 91206
3 1111 E Lexington Dr. $7,900,000 19,641 SF $402.22 $272,413 29 04/05/2019
Glendale, CA 91206
4 210 N Belmont St $7,995,000 22,661 SF $352.81 $399,750 20 10/22/2018
Glendale, CA 91206
Totals/Averages Price Price/SF Price/Unit CAP GRM # Of Units
$7,017,500 $367.25 $311,888 - - 22.5
315
SALE COMPARABLES
Sale Comps
Map
SUBJECT PROPERTY
2022 Eleanore Dr. | Glendale, CA 91206
1 609 N Jackson St. 2 1470 E Wilson Ave 3 1111 E Lexington Dr.
Glendale, CA 91206 Glendale, CA 91206 Glendale, CA 91206
4 210 N Belmont St
Glendale, CA 91206
32Demographics › Demographics Map
6
DEMOGRAPHICS
Demographics
Map
Population 1 Mile 3 Miles 5 Miles
TOTAL POPULATION 15,372 214,801 514,023
MEDIAN AGE 40.9 39.5 38.3
MEDIAN AGE (MALE) 40.8 38.5 37.1
MEDIAN AGE (FEMALE) 40.6 40.1 39.2
Households & Income 1 Mile 3 Miles 5 Miles
TOTAL HOUSEHOLDS 5,777 77,961 181,353
# OF PERSONS PER HH 2.7 2.8 2.8
AVERAGE HH INCOME $90,412 $75,146 $84,284
AVERAGE HOUSE VALUE $660,215 $566,184 $666,884
Race 1 Mile 3 Miles 5 Miles
% WHITE 63.9% 64.0% 62.0%
% BLACK 1.9% 2.3% 3.4%
% ASIAN 22.8% 19.0% 16.8%
% HAWAIIAN 0.3% 0.1% 0.2%
% INDIAN 0.2% 0.4% 0.4%
% OTHER 7.7% 11.4% 14.6%
Ethnicity 1 Mile 3 Miles 5 Miles
% HISPANIC 22.0% 28.4% 35.9%
34Sample Marketing › Sample Property Website › Sample Email Campaign › Back Page
7
SAMPLE MARKETING
Sample
Property Website
P R O P E R T Y- S P E C I F I C S I T E S
We create an individual webpage for each institutional listing
accessible from NAI Capital. The website includes extensive
property information including the offering summary, a high-
resolution photo gallery, property attributes, interactive
maps, area information, demographic information, a digital
offering memorandum and brochure, and a downloadable
confidentiality agreement.
367
SAMPLE MARKETING
Sample
Email Campaign
FULL HTML EMAIL BLASTS
E-mail has made it much easier to contact thousands on
brokers/buyers/lessors on a monthly basis, with PDF files attached
containing all the pertinent property information. This ensures that we
have a “marketing touch” with the community and that we maintain a
frequency that keeps each property’s availability fresh in the minds of
all. Our comprehensive database of brokers, prospective tenants, and
buyers - allows us to efficiently target and qualify the best buyer/lessor
for your property - in the shortest amount of time.
37NAI Capital 225 S. Lake Avenue, Suite 1170 Pasadena, CA 91101 626.564.4800 www.naicapital.com
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