LO NG BE ACH, CA
B RO K E R O P I N I O N O F VA LU E
BROKER OPINION OF VALUE I NVE STME N T CON TACTS
JASON DUFAULT Managing Director 714.292.6478 jason@jdufault.com Lic. #01844551
JOSEPH SIOUNIT Co-Listing Broker 310.779.1145 joseph4realestate@yahoo.com Lic. #01299382
6621 E PCH, SUITE 150 LONG BEACH, CA 90803 10960 WILSHIRE BLVD, SUITE 100 LOS ANGELES, CA 90024
This project contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this project has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forwardlooking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This project describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be nonbinding and neither Keller Williams, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner. Keller Williams & the Keller Williams logo are service marks of Kelller Williams. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of Kelller Williams. Each
Office
is
Independently
Owned
and
Operated.
Broker
and Broker’s Agents do not represent or guarantee accuracy of square footage, lot size, condition, features. It is the Buyer’s sole
D I SC L AIMER
responsibility
to
perform
investigations
and
© 2020 Keller Williams, Inc. All Rights Reserved.
satisfy
themselves.
CO N T ENTS
01
KW INTRO PAGE
04
MARKET OVERVIEW
02
PROPERTY DESCRIPTION
05
SALES PLAN
03
LOCATION OVERVIEW
06
OFFERING TERMS
In one of the most stunning David and Goliath stories in
Keller Williams is a leader in global real estate. We offer
real estate history, Keller Williams has surged past industry
comprehensive services to investors, property owners,
giants like RE/MAX, Coldwell Banker, and Berkshire
tenants, and developers around the world. We have an
Hathaway HomeServices to become the number one real
established network and a proven model that sets the
estate franchise in agent count, closed units, and closed
framework for profitability in markets across the globe.
sales volume in the United States*. In 2017, the company’s
We know that the strongest enterprises are driven by top
155,000 U.S. agents closed more than 1 million units,
talent, and our growth strategy is completely centered on
generating more than $300 billion in sales revenue.
getting in business with the very best people in the real estate industry across the globe.
6
5 CONTINENTS
36 REGIONS
LARGEST
195+ LOCATIONS
NUMBER ONE
INDEPENDENT REAL ESTATE FRANCHISE IN THE WORLD
IN UNITS & SALES VOLUME IN THE UNITED STATES
1,000+
180,000
OFFICES IN THE US AND CANADA & 5 CONTINENTS
REAL ESTATE PROFESSIONALS IN THE KW NETWORK
EXCELLENCE
MOST INNOVATIVE
IN TRAINING, COACHING AND REAL ESTATE EDUCATION
REAL ESTATE COMPANY (INMAN NEWS)
7
FLOOR
PLAN
8
SITE
PLAN
LOCATION:
The Property is bordered by E 55th Street on the South, E 56th Street on the North, Atlantic Avenue on the West and Lime Avenue on the East.
ADDRESS:
5536 Atlantic Avenue Long Beach, CA 90805
9
LOCATION
OVERVIEW
Atlantic Ave
PROPERTY SUMMARY TYPE
Storefront
GLA
4,200 SF
YEAR BUILT
1947
FLOORS
1
CONSTRUCTION
Wood Frame
LAND
0.10 AC
VACANCY
100%
NNN ASKING RENTS
$14.40 Per SF
MARKET RENT
$25.51 Per SF
10
POPULATION
1 MILE
3 MILES
5 MILES
10 MILES
10 MIN. DRIVE
Population
50,225
231,474
677,487
2,542,513
570,567
5 Yr Growth
-0.4%
-0.6%
-0.4%
-0.3%
-1.3%
Median Age
32
34
34
35
34
5 Yr Forecast
34
36
36
37
36
White / Black / Hispanic
60% / 18% / 58%
63% / 18% / 54%
65% / 18% / 56%
68% / 13% / 58%
64% / 18% / 54%
5 Yr Forecast
60% / 17% / 58%
63% / 18% / 54%
65% / 18% / 57%
68% / 13% / 59%
64% / 17% / 55%
Employment
3,558
88,762
220,037
952,742
251,853
Buying Power
$758.1M
$4.5B
$12.5B
$47.6B
$11.1B
5 Yr Growth
2.7%
2.1%
2.0%
2.0%
1.3%
College Graduates
11.4%
15.8%
15.4%
18.1%
23.5%
Households
14,343
68,218
191,956
755,696
163,692
5 Yr Growth
-0.3%
-0.7%
-0.4%
-0.3%
-1.3%
Median Household Income
$52,855
$65,324
$65,343
$63,053
$67,894
5 Yr Forecast
$54,486
$67,144
$66,892
$64,511
$69,738
Average Household Income
$69,382
$81,390
$82,116
$82,361
$86,985
5 Yr Forecast
$71,233
$83,217
$83,929
$84,214
$89,225
% High Income (>$75k)
37%
43%
43%
42%
45%
Median Home Value
$410,776
$467,033
$481,813
$530,114
$543,033
Median Year Built
1955
1957
1958
1960
1958
Owner / Renter Occupied
43% / 57%
52% / 48%
53% / 47%
49% / 51%
52% / 48%
HOUSEHOLD
HOUSING
MARKET
OVERVIEW NET ABSORPTION, NET DELIVERIES & VACANCY
YEAR OVER YEAR JOB GROWTH
12
POPULATION GROWTH
LABOR FORCE GROWTH
INCOME GROWTH
LOS ANGELES ECONOMIC SUMMARY Recent months have seen progress, digging out from the depths of the coronavirus downturn, but the hole already dug is deep, and the outlook going forward remains highly uncertain. The metro was hit particularly hard with job losses. Unemployment has improved from its peak in May, but remains well above the national average. Los Angeles’ position as the entertainment capital of the world and the increased demand for video streaming and social media had been a boon to the L.A. economy during the past several years. While production of content is down and the economic impacts on the sector are clear, longer term, the industry should remain a key driver of growth in the metro. The content war never went away; it just went in hibernation. The entertainment business directly or indirectly employs one out of five workers in L.A. County, so it will be critical to see activity improve from the industry to create a sustainable recovery. Tourism is important for the local economy, and with leisure travel down considerably, the impact to this sector and its employees has been profound. Before the pandemic, over 500,000 people in the county were employed in the leisure and hospitality industry. L.A. saw 50 million visitors in 2019. Air travel remains highly depressed. September passenger volumes out of Los Angeles International Airport (LAX) were down over 75% from volumes seen the same month a year ago. Stores, restaurants, and lodging in tourist hotspots like Downtown L.A., Hollywood, Beverly Hills, and Santa Monica have been particularly impacted. Luckily trade, another staple of the economy, has seen its fortunes improve in
recent months. Trade volumes through the Los Angeles and Long Beach ports have been notably strong since July. Prior to the uptick, levels had been depressed as a result of the early stages of the pandemic and the trade war with China. The rhetoric between the U.S. and China remains heated, but with the election of Joe Biden as President, relations between the two nations could change. Roughly half of the goods that enter through the twin ports of Los Angeles and Long Beach come from China, a significantly higher ratio than at other major U.S. ports. As more of a structural issue that needs to be addressed long term, the prohibitive cost of housing in L.A. is a major impediment to hiring and is often cited as a motivating factor for companies to relocate to other parts of the country. L.A.’s population did not grow last year and has averaged only 0.3% annual population growth over the past 10 years. Lower-income households have been relocating to more affordable areas of the country for decades. Despite near-term doom-and-gloom, the metro economy possesses many positive attributes. The economy is diverse and largely matches the profile of the national economy. The metro is an attractive location for immigrants and educated talent throughout the nation. More people making six-figure paychecks continue to move to L.A. than are leaving. Education levels, while below the national average, continue to improve every year.
13
SALES
PLAN S O LU TIO N : K EL L ER WI L L I AMS PREM IER S ALES T EA M C O M M ITS TO THE F OL L OWING T O PR O V IDE M A X I MUM RESULTS
• Position the project as the exciting new townhome development in the region. • Implement strong marketing campaign using targeted strategy & consistent process through multiple distribution channels • Utilize database of national, regional, and local Buyer and Agents to create awareness of the development
SALES
MARKET
AGENT 14
15
OFFERING
TERMS Noviverdi itam firmiliem ervigno nessoli caequam fecris; Cato ium moretrum unum aperem il unumures temusqua mum aceps, me mors suppli consum ant. Ivid ia publibus, quam niamdii ssenter emnirmis consul hoc, se, non dici int. At ius la vir atuit, que ipionsultus culessul vite confectu esupicerdit apesimmo pra tes verevignat, spioste ssentra, side pere nononvo, qua Sp. Maribes firis, nos atus conequam. Grat, supplis. Dum teat pliuro cre aute ego iam st virmaios, mentess iliura re, tuam omaio pessoltum maionsum aucivid simus cons huctum es ficit et; in aucont publicerfec restil verit; num et opublicaed inculin veridees? P. Bitantiam inte ex morissula ninam, ublin nimilicii culium actum patamdien non te que con teri preo hebefac ivemoves es consuli civerumus huis. Um intem et esensigitam posusquit.
FINANCIAL INFORMATION
Noviverdi itam firmiliem ervigno nessoli caequam
Price
xx
fecris; Cato ium moretrum unum aperem il unumures
Net Rentable Area (BOMA)
xx
Percentage Leased
temusqua mum aceps, me mors suppli consum ant. Ivid
xx
In-Place NOI
ia publibus, quam niamdii ssenter emnirmis consul hoc,
xx
Year 1 NOI
se, non dici int. At ius la vir atuit, que ipionsultus culessul
xx
vite confectu esupicerdit apesimmo pra tes verevignat, spioste ssentra, side pere nononvo, qua Sp. Maribes firis,
TENANT INFORMATION
nos atus conequam. Grat, supplis. Dum teat pliuro cre
Vacancy
xx
NRA
aute ego iam st virmaios, mentess iliura re, tuam omaio
xx
In-Place ROI
pessoltum maionsum aucivid simus cons huctum es ficit
xx
WALT
et; in aucont publicerfec restil verit; num et opublicaed
xx
No. of Tenants
inculin veridees? P. Bitantiam inte ex morissula ninam,
xx
ublin nimilicii culium actum patamdien non te que con teri preo hebefac ivemoves es consuli civerumus huis. Um intem et esensigitam posusquit.
16
Noviverdi itam firmiliem ervigno nessoli caequam fecris;
Maribes firis, nos atus conequam. Grat, supplis. Dum teat
Cato ium moretrum unum aperem il unumures temusqua
pliuro cre aute ego iam st virmaios, mentess iliura re, tuam
mum aceps, me mors suppli consum ant. Ivid ia publibus,
omaio pessoltum maionsum aucivid simus cons huctum es
quam niamdii ssenter emnirmis consul hoc, se, non dici
ficit et; in aucont publicerfec restil verit; num et opublicaed
int. At ius la vir atuit, que ipionsultus culessul vite confectu
inculin veridees? P. Bitantiam inte ex morissula ninam, ublin
esupicerdit apesimmo pra tes verevignat, spioste ssentra,
nimilicii culium actum patamdien non te que con teri preo
side pere nononvo, qua Sp. Maribes firis, nos atus conequam.
hebefac ivemoves es consuli civerumus huis.
Grat, supplis. Dum teat pliuro cre aute ego iam st virmaios, mentess iliura re, tuam omaio pessoltum maionsum aucivid
P. Bitantiam inte ex morissula ninam, ublin nimilicii culium
simus cons huctum es ficit et; in aucont publicerfec restil
actum patamdien non te que con teri preo hebefac ivemoves
verit; num et opublicaed inculin veridees?
es consuli civerumus huis. Um intem et esensigitam posusquit, condam ina, conihili, mus Ad maximul ibusquerox
P. Bitantiam inte ex morissula ninam, ublin nimilicii culium
siliurorum ex sussid nicastrae, alegiterum atum nonem di se
actum patamdien non te que con teri preo hebefac ivemoves
cone num conernimum ad con te.
es consuli civerumus huis. Um intem et esensigitam posusquit, condam ina, conihili, mus Ad maximul ibusquerox siliurorum ex sussid nicastrae, alegiterum atum nonem di se cone num conernimum ad con te.
17
JASON DUFAULT Managing Director 714.292.6478 jason@jdufault.com Lic. #01844551 JOSEPH SIOUNIT Co-Listing Broker 310.779.1145 joseph4realestate@yahoo.com Lic. #01299382 6621 E PCH, SUITE 150 LONG BEACH, CA 90803 10960 WILSHIRE BLVD, SUITE 100 LOS ANGELES, CA 90024