South Park View Street - LOS ANGELES, CA 90057 - The Neema Group
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OFFERING MEMORANDUM
512
South Park View Street
LOS ANGELES, CA 90057
°°°
39-Unit Investment Opportunity Located
in the Westlake Neighborhood of Los Angeles between 6th St & W 3rd St
°°°
31 Singles and Eight One-Bedrooms, 5.00% CAP Rate and 11.33 GRM
at the Asking Price with Additional 22% Rental Upside
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be
reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or
entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary,
unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not
made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject
property, the future projected financial performance of the property, the size and square footage of the property and
improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and
Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of
any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained
in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not
verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation
regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the
information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
NON-ENDORSEMENT NOTICE
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this
marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or
sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,
service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee
information about this listing to prospective customers.
SPECIAL COVID-19 NOTICE
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due
diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the
continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on
behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting
as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as
lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals
on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition Exclusively Listed By
or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility
created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and Neema Ahadian
decision-making. Senior Managing Director of Investments
CA BRE License #01346750
310.909.5444 Tel
All Property Showings Are By Appointment Only.
Neema@marcusmillichap.com
Please Consult Your Marcus & Millichap Agent For More Details.
5 1 2 South Park View Street
Property Summary
PROPERTY INFORMATION
512 South Park View Street
Address:
Los Angeles, CA 90057
Number of Units: 39
Approx. Gross SF: 22,120 SF
Approx. Lot Size: 7,486 SF
Year Built: 1928
Parcel Number: 5154-037-031
Property Type: Multi-Family
31 Single
Unit Mix:
8 One-Bedrooms
Zoning: LAR4
PRICING INFORMATION
Sale Price: $6,250,000
Cost per Legal Unit: $160,256
Cost per Bldg SF: $283
Current Cap Rate: 5.00%
Current GRM: 11.33
Market Cap Rate: 6.62%
Market GRM: 9.28
Marcus & Millichap | The Neema Group | 3
Investment Highlights
°°° °°° °°°
The Neema Group of Marcus & Millichap is pleased At the asking price, the property is being offered at Central location that is beneficial for residents that
to present 512 S South Park View St, a 39-unit a low $283 PSF, 5.00% CAP rate and 11.33 GRM on commute throughout the city with close proximity to
apartment building in the Westlake neighborhood current income with an additional 22% rental upside Downtown Los Angeles, Koreatown, Echo Park, and
of Los Angeles located between W 3rd St & W 6th achievable as units turn Silver Lake, walking distance to retail along S Alvarado
St, walking distance to MacArthur Park St as well as the St. Vincent Medical Center
°°°
The building has a gated, secure entrance with an
°°° intercom system, there is also community laundry
°°°
The property features a unit mix made up of 31 Ideal rental market that continues to grow, illustrated
singles and eight one-bedrooms; three units (two °°° through the plentiful new developments currently
singles and one one-bedroom) will be delivered High Walk Score of 92, residents benefit from multiple under construction in the area such as 1800 W Beverly
vacant at the close of escrow metro bus line stops along 6th Ave and just one mile Blvd (243 units), Inspire Echo Park (90 units), and 1999
from the metro rail lines W 3rd St (137 units)
4 | 512 South Park View Street, Los Angeles, CA 90057
512 South Park View Street
Marcus & Millichap | The Neema Group | 5
512
South Park View Street
6 | 512 South Park View Street, Los Angeles, CA 90057
5 1 2 South Park View Street
512
South Park View Street
Marcus & Millichap | The Neema Group | 7
5
Nearby Retail
& Amenities
TRANSPORTATION
1 Westlake/ MacArthur Park Subway Station
4 2 7th St/ Metro Center Light Rail Station
3 3rd/ Carondelet
3
512
South Park View Street
SCHOOLS
1 Union Avenue Elementary School
2 Gratts Elementary School
3 3 Belmont High School
1
4 Harris Newmark High School
5 John Liechty Middle School
4
3
RETAIL
2
1 Figat7th
4
2 The Home Depot
2
1 3 Chick-fil-A
2
4 Jack in the Box
5 1 6 5 Chipotle
5
6 Starbucks
6
MISCELLANEOUS
1 Good Samaritan Hospital
1 3
2 MacArthur Park
2
3 Echo Park
4 Dodger Stadium
5 Elysian Park
6 The Broad
8 | 512 South Park View Street, Los Angeles, CA 90057
5 1 2 South Park View Street
Good Samaritan
Harris Newmark Hospital Figat7th
High School
Gratts
Elementary
School Home Depot
Belmont MacArthur Park
High School
Starbucks
Union Avenue
Elementary
School
1
1
Jack In the Box
4
3
2
2 6
1
4
2
512
South Park View Street
Marcus & Millichap | The Neema Group | 9
Westlake Bridging the Gap Between
Downtown LA & Koreatown
Westlake is adjacent to other notable neighborhoods, including Echo
Park, Pico Union, Downtown and Koreatown. The neighborhood is
extremely dense, with endless streets lined with small businesses.
MacArthur Park, designated as the City of Los Angeles Cultural
3rd/
Monument #100, is located in Westlake and is adjacent to the Metro’s Carondelet
Westlake/MacArthur Park Station, which affords access to the Red
and Purple lines. Those lines provide public transportation toward
Downtown, North Hollywood and toward Koreatown, with West Side
extensions projected to be completed in 2027.
512
South Park View Street
Vermont/
Westlake has recently seen a flurry of development and public safety Wilshire
initiatives, from mixed-use projects to new crosswalks. M2A Architects
was contracted to construct a mixeduse project at the intersection
of Olympic and Hoover that will feature 173 dwelling units, nearly
37,000 square feet of ground-floor commercial space and parking Westlake/
MacArthur Park
for 262 vehicles. Amidi Group, a San Francisco-based developer, is
50% complete with their $180 million 1027 Wilshire development.
The project will span nine stories and feature 376 residential units,
approximately 5,000 square feet of groundfloor retail space, and
subterranean parking for more than 800 vehicles.
7 th St/
Metro Center
93 Walk Score
Walker’s Paradise 94 Transit score
Rider’s Paradise
The Westlake Collection’s central location near Downtown Los Angeles results in excellent walkability and
accessibility for its residents. The properties are within walking distance of stops on the Metro Red and Purple lines,
one stop away from the Metro Blue and Expo lines, within a block of stops for five bus lines, and at the heart of the
Los Angeles freeway system.
10 | 512 South Park View Street, Los Angeles, CA 900575 1 2 South Park View Street
Hollywood affords a vibrant mix of activities and entertainment for all types of residents. Voted Forbes’ Hippest Neighborhood and built around a city reservoir, Silver
Highly rated restaurants include Katsuya, Cleo, and Musso & Frank Grill (opened in 1919). Lake is well known for its trendy restaurants, nightlife, and avant garde
For the younger cohort, Hollywood also offers an endless amount of bars, chic lounges, and Modernist architecture. Since the end of 1990’s the area has also been the
exclusive dance clubs to enjoy. National retailers and original boutiques that line Hollywood center of LA’s indie and alternative music scene. Silver Lake has long been
Boulevard offer the latest fashions. On Sundays, The Hollywood Farmers Market provides a preferred community, but approximately 15 years ago when gentrification
fresh produce and prepared foods. Runyon Canyon Park offers some of Los Angeles’ best began in earnest, home values and rents have sharply increased.
views and hikes. Residents have affordable public transportation options provided by the
Metro Red Line and several bus lines.
SILVER
LAKE
HOLLYWOOD
512
South Park View Street
Westlake
KOREATOWN DTLA
Long celebrated for its art deco architectural heritage and immigrant community, today The Downtown submarket of Los Angeles includes its central business district,
Koreatown has emerged as one of Los Angeles’ most fashionable areas. As the densest which contains the nation’s third largest employment pool. Additionally, this
part of Los Angeles, new residents flock to this neighborhood just west of Downtown to submarket features many major sports facilities, sightseeing opportunities,
enjoy walkable amenities, fabulous restaurants, and recently opened boutique hotels like skyscrapers, and large multinational corporations. Downtown is also the hub of
the Line and Normandie. The Metro Purple Line traversing Wilshire Boulevard in the heart the city’s freeway network and Metro rapid-transit system. LA Live is one of
of Koreatown will further attract new residents. Thanks to Korean and Latino immigrants, downtown’s most innovative developments featuring sports and music venues,
the area is dotted with highly rated ethnic eateries. nightclubs, restaurants, a bowling alley, a museum, and movie theaters.
Marcus & Millichap | The Neema Group | 1 1Rent Roll
ACUAL PRO FORMA ACUAL PRO FORMA
UNIT NO. UNIT TYPE MOVE-IN DATES UNIT NO. UNIT TYPE MOVE-IN DATES
RENTS RENTS RENTS RENTS
1 101 1+1 $1,375 $1,750 1/18/2020 20 301 1+1 $1,395 $1,750 5/5/2021
2 102 Single $1,075 $1,350 4/6/2019 21 302 Single $1,130 $1,350 5/2/2016
3 103 Single $933 $1,350 5/1/2011 22 303 Single $933 $1,350 12/1/2011
4 104 Single $1,195 $1,350 12/3/2022 23 304 Single $934 $1,350 2/1/2007
5 105 Single $898 $1,350 9/1/2011 24 305 Single $1,275 $1,350 9/1/2020
6 106 Single $1,136 $1,350 12/1/2016 25 306 Single $1,350 $1,350 Vacant
7 107 Single $1,174 $1,350 12/1/2017 26 307 Single $1,250 $1,350 8/1/2021
8 108 Single $934 $1,350 1/11/2011 27 308 Single $996 $1,350 2/1/2007
9 109 1+1 $1,167 $1,750 On-Site Manager 28 309 Single $1,295 $1,350
10 201 1+1 $1,584 $1,750 3/1/2017 29 310 1+1 $1,550 $1,750 10/20/2019
11 202 Single $937 $1,350 11/4/2011 30 401 1+1 $1,750 $1,750 Vacant
12 203 Single $1,250 $1,350 12/22/2020 31 402 Single $1,022 $1,350 12/15/2013
13 204 Single $1,153 $1,350 12/15/2018 32 403 Single $1,250 $1,350 12/11/2020
14 205 Single $878 $1,350 6/1/2005 33 404 Single $1,250 $1,350 8/15/2021
15 206 Single $930 $1,350 10/3/2012 34 405 Single $917 $1,350 6/1/2005
16 207 Single $1,275 $1,350 35 406 Single $1,244 $1,350 4/10/2017
17 208 Single $1,350 $1,350 Vacant 36 407 Single $934 $1,350 2/15/2010
18 209 Single $967 $1,350 4/7/2012 37 408 Single $1,250 $1,350 8/1/2019
19 210 1+1 $1,395 $1,750 7/20/2021 38 409 Single $984 $1,350 4/7/2012
39 410 1+1 $1,410 $1,750 9/1/2012
$45,725 $55,850
Single $35,509 $41,850
1+1 $10,216 $14,000
$45,725 $55,850
1 2 | 512 South Park View Street, Los Angeles, CA 900575 1 2 South Park View Street
Financial Analysis
ANNUALIZED OPERATING DATA CURRENT RENTS MARKET RENTS SUMMARY
Scheduled Gross Income: $551,733 $673,236
Price: $6,250,000
Less Vacancy Rate Reserve: $(16,552) 3.0% ($33,662) 5.0%
Gross Operating Income: $535,181 $639,574 Down Payment: 45% $2,812,500
Less Expenses: $(222,466) 40.3% ($225,598) 33.5% Number of Units: 39
Net Operating Income: $312,715 $413,976
Reserves: $(7,800) ($7,800) Cost per Legal Unit: $160,256
Less Debt Service: $(243,351) ($243,351) Current GRM: 11.33
Pre-Tax Cash Flow: $61,564 2.2% $162,825 5.8%
Market GRM: 9.28
Plus Principal Reduction: $44,642 $44,642
Total Return Before Taxes: $106,206 3.8% $207,467 7.4% Current CAP: 5.00%
Market CAP: 6.62%
ESTIMATED ANNUALIZED EXPENSES CURRENT RENTS MARKET RENTS
Taxes Rate: 1.17% $73,125 $73,125 Approx. Age: 1928
Insurance: $16,590 $16,590 Approx. Lot Size: 7,486
Utilities: $50,475 $50,475
Approx. Gross SF: 22,120
Waste Removal: $18,468 $18,468
Repairs & Maintenance: $19,500 $19,500 Cost per Net GSF: $282.55
Management: 3% $16,055 $19,187
On-Site Manager: $19,200 $19,200
Landscaping/Cleaning: $1,800 $1,800
Pest Control: $1,093 $1,093
Elevator: $1,560 $1,560
License and Fees: $1,950 $1,950 NEW POTENTIAL FINANCING
Direct Assessment: $2,650 $2,650
New First Loan: $3,437,500
Total Expenses: $222,466 $225,598
Per Net Sq. Ft.: $10.06 $10.20 Interest Rate: 5.85%
Per Unit: $5,704 $5,785
Amortization: 30
CURRENT RENTS SCHEDULED RENTS
Monthly Payment: $20,279.22
Avg Monthly Rent/ Monthly Monthly Monthly
No. of Units Unit Type Unit SF DCR: 1.29
Unit Income Rent/Unit Income
31 Single $1,145 $35,509 $1,350 $41,850
8 1+1 $1,277 $10,216 $1,750 $14,000
Total Scheduled Rent: $45,725 $55,850
Laundry $253 $253
Monthly Scheduled Gross Income: $45,978 $56,103
Annual Scheduled Gross Income: $551,733 $673,236
* As a percent of the down payment
Marcus & Millichap | The Neema Group | 1 3Sales Comparables
1 512 South Park View St 1 2014 W 8th St 2 1247 Ingraham St 3 447 S Rampart Blvd 4 433 Union Dr
Sale Price 6,250,000 Sale Price $8,757,788 Sale Price $5,850,000 Sale Price $7,130,000 Sale Price $6,400,000
Building SF 22,120 SF Building SF 32,616 SF Building SF 20,588 SF Building SF 23,072 SF Building SF 29,116 SF
Lot Size 7,486 SF Lot Size 11,117 SF Lot Size 6,887 SF Lot Size 8,276 SF Lot Size 8,107 SF
Price/SF $283 Price/SF $269 Price/SF $284 Price/SF $309 Price/SF $219
Price/Unit $160,256 Price/Unit $182,453 Price/Unit $146,250 Price/Unit $145,510 Price/Unit $164,102
Year Built 1928 Date Sold 6/1/2022 Date Sold 4/6/2022 Date Sold 4/21/2022 Date Sold 1/25/2022
No. of Units 39 Year Built 1924 Year Built 1929 Year Built 1924 Year Built 1928
Cap Rate 5.00% No. of Units 48 No. of Units 40 No. of Units 49 No. of Units 74
Cap Rate Cap Rate 5.40% Cap Rate 4.50% Cap Rate 5.35%
14 | 512 South Park View Street, Los Angeles, CA 900575 1 2 South Park View Street
5 416 S Westlake Ave 6 807 S Westlake Ave 7 450 S Benton Way 8 1136 S Alvarado St
Sale Price $5,400,000 Sale Price $6,442,212 Sale Price $2,995,000 Sale Price $4,400,000
Building SF 20,478 SF Building SF 24,882 SF Building SF 8,772 SF Building SF 16,113 SF
Lot Size 8,703 SF Lot Size 11,117 SF Lot Size 7,841 SF Lot Size 8,281 SF
Price/SF $263 Price/SF $258 Price/SF $341 Price/SF $273
Price/Unit $154,285 Price/Unit $165,184 Price/Unit $166,388 Price/Unit $183,333
Date Sold 1/25/2022 Date Sold 6/1/2022 Date Sold 4/21/2022 Date Sold Under Contract
Year Built 1923 Year Built 1923 Year Built 1924 Year Built 1912
No. of Units 74 No. of Units 87 No. of Units 18 No. of Units 24
Cap Rate 4.65% Cap Rate Cap Rate Cap Rate
Marcus & Millichap | The Neema Group | 1 5Sales Comparables Map
512
South Park View Street
7
3
416 S Westlake Ave
1
450 S Benton Way 433 Union Dr
5
4
1
6
447 S Rampart Blvd
2
2014 W 8th St
1247 Ingraham St
8
1136 S Alvarado St
807 S Westlake Ave
16 | 512 South Park View Street, Los Angeles, CA 90057OFFERING MEMORANDUM
512
South Park View Street
LOS ANGELES, CA 90057
Exclusively Listed By
Neema Ahadian
Senior Managing Director of Investments
CA BRE License #01346750
310.909.5444 Tel
Neema@marcusmillichap.comYou can also read
