631 S. Burnside Ave. LA, CA 90036

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631 S. Burnside Ave. LA, CA 90036

Six Units in a Prime Miracle Mile Location

Price: $3,150,000

Errol Spiro - CEO of Miller & Desatnik: 310-202-9166

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EXECUTIVE SUMMARY

631 S. Burnside | Los Angeles, CA 90036

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals.

Acquisition Costs

Purchase Price, Points and Closing Costs $3,150,000

Investment - Cash $1,800,000

First Loan (Interest Only) $1,350,000 Investment Information

Purchase Price $3,150,000

Price per Unit $525,000

Price per Sq. Ft. $516.31

Expenses per Unit ($10,063)

Income, Expenses & Cash Flow

Gross Scheduled Income $160,020

Total Vacancy and Credits ($4,801)

Operating Expenses ($60,375)

Net Operating Income $94,844

Debt Service ($43,875)

Cash Flow Before Taxes $50,969

Financial Indicators

Cash-on-Cash Return Before Taxes 2.83%

Debt Coverage Ratio 2.16

Capitalization Rate 3.01%

Gross Rent Multiplier 19.69

Gross Income / Square Feet $26.23

Gross Expenses / Square Feet ($9.90)

Operating Expense Ratio 38.90%

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PROPERTY DESCRIPTION

631 S. Burnside Ave.

631 S. Burnside is a rare opportunity to acquire an exquisite Mediterranean style building in The Beverly Grove / Miracle Mile area, north of Wilshire Blvd. and west of La Brea Ave. It has a walking score of over 95% and is close proximity too many of LA's most sought after attractions. The properties location provides its tenants with quick access to the cultural attractions of Museum Row as well as the restaurants, shops, bars, and entertainment venues that populate Museum Square.

The property has an excellent unit mix of two (2) 2 BR + 1 Bath and (4) 1 BR + 1 Bath units. Three of the six units are on month to month leases. The units are spacious averaging approximately 1,016 SqFt each. The property is generating strong income but its rents are currently below market creating a value-add opportunity for new ownership. One of the 1 BR + 1 Bath units has both a dishwasher and built in washer and dryer. Another unit has a built in washer and dryer and the additional four units all have portable hookups for a washer/dryer. Each of the units have a separate entrance and exit with their own individual address.

This beautiful 6-unit boutique apartment Building was originally constructed in 1938, zoned (Q) R4-1 and is located on a large lot of approximately 7,786 SqFt. The property is located within the Transit Oriented Communities Plan (TOC) Tier 3 which allows for future development potential. There are also 6 carport parking garages that could be used for ADU’s to increase your income potential.

631 S. Burnside is a beautiful six unit multi-family property in a prime Miracle Mile location that would be a welcome addition to any multi-family investors portfolio.

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PRO FORMA SUMMARY

Unit Mix & Monthly Scheduled Income

Type Units Actual Total Market Total

2 BR + 1 Bath 1 $2,650 $2,650 $3,000 $3,000

2 BR + 1 Bath 1 $2,165 $2,165 $3,000 $3,000

1 BR + 1 Bath 1 $2,200 $2,200 $2,450 $2,450

1 BR + 1 Bath 1 $1,995 $1,995 $2,450 $2,450

1 BR + 1 Bath 1 $1,875 $1,875 $2,450 $2,450

1 BR + 1 Bath 1 $2,450 $2,450 $2,450 $2,450

Totals 6 $13,335 $15,800

Annualized Income

Description Actual Market

Gross Potential Rent $160,020 $189,600

- Less: Vacancy ($4,801) ($5,688)

Effective Gross Income $155,219 $183,912

- Less: Expenses ($60,375) ($60,375)

Net Operating Income $94,844 $123,537

- Debt Service ($43,875) ($43,875)

Net Cash Flow after Debt Service $50,969 $79,662

+ Principal Reduction $0 $0

Total Return $50,969 $79,662

Annualized Expenses

Description Actual Market

Property Taxes $39,375 $39,375

Other Expenses $21,000 $21,000

Total Expenses $60,375 $60,375

Expenses Per RSF $9.90 $9.90

Expenses Per Unit $10,063 $10,063

Investment Summary

Price $3,150,000

Year Built 1938

Units 6

Price/Unit $525,000

RSF 6,101

Price/RSF $516.31

Lot Size 7,786 sf

Floors 2

Parking Spaces 6

APN 5508-012-007

Cap Rate 3.01%

Market Cap Rate 3.92%

GRM 19.69

Market GRM 16.61

Financing Summary

Loan 1 (Interest Only) $1,350,000

Initial Equity $1,800,000

Interest Rate 3.25%

Term 30 years

Monthly Payment $3,656

DCR 2.16

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LOCATION MAP

631 S. Burnside | Los Angeles, CA 90036 Page 05

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BUSINESS MAP

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PROPERTY PHOTOS

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PROPERTY PHOTOS

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PROPERTY PHOTOS

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PROPERTY PHOTOS

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PROPERTY PHOTOS

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A R E A OV E R V I E W

Miracle Mile, Los Angeles

Miracle Mile offers many amazing opportunities for those living and working here. With historical neighborhoods, protected Art-Deco buildings, world class museums, delicious restaurants and retail establishments too, moving here means being in the middle of it all!

Generally located between Highland to the east and Fairfax to the west, 3rd St to the north and San Vicente to the south, this is the beating heart of LA.

And don’t forget the proximity to LAX. Getting to the airport is a dream!

Miracle Mile appeals to a diverse group of Angelenos. The central location provides a strategic point for those who work in creative fields. The

proximity to Hollywood and Culver City studios, the ability to get West to Silicon Beach, and the access to the freeway to get you anywhere else

means you’ll be able to get to that next job or gig quickly. Not only does the abundance of housing provide opportunities for growing families but also recent college graduates and those starting out in their respective careers.

With the Purple Line Extension getting closer to completion, Miracle Mile will only increase its desirability as a place to live since the subway will mean more people will be able to get around all of the Greater LA area without having to step foot into a car.

There is so much to see and do in Miracle Mile you will never be bored.

Museum Row alone, including the La Brea Tar Pits, will have you falling in love over and over. Restaurants to satisfy even the most hardened foodie.

Shopping, dining and movies at the Grove. A central location that makes an easy commute to the rest of the city—Culver City, Beverly Hills,

Hollywood, Downtown are close—and access to the beach areas is a quick

jaunt down the freeway or streets like Venice or Washington. Once the

subway extension is completed, all of what Greater LA has to offer will be

at your fingertips.

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DEMOGRAPHICS

Population 1 Mile 3 Miles 5 Miles

Male 21,072 230,121 536,708

Female 22,733 231,311 537,714

Total Population 43,805 461,432 1,074,422

Age 1 Mile 3 Miles 5 Miles

Ages 0-14 6,008 70,795 172,583

Ages 15-24 3,742 45,535 112,004

Ages 55-64 5,813 59,191 132,380

Ages 65+ 6,309 65,586 151,374

Race 1 Mile 3 Miles 5 Miles

White 27,079 233,766 497,997

Black 4,775 45,683 120,189

Am In/AK Nat 5 837 2,753

Hawaiian 1 28 141

Hispanic 4,742 176,656 478,974

Multi-Racial 6,070 223,188 611,820

Income 1 Mile 3 Miles 5 Miles

Median $69,677 $46,793 $44,335

< $15,000 2,524 32,559 76,930

$15,000-$24,999 1,559 24,281 56,767

$25,000-$34,999 1,486 22,440 49,504

$35,000-$49,999 2,640 28,165 59,789

$50,000-$74,999 3,799 32,551 67,718

$75,000-$99,999 2,833 19,764 40,021

$10,0000-$149,999 3,075 20,902 41,512

$150,000-$199,999 1,868 8,856 17,510

> $200,000 1,792 11,002 26,137

Housing 1 Mile 3 Miles 5 Miles

Total Units 24,125 228,348 490,838

Occupied 22,515 210,278 453,567

Owner Occupied 4,626 46,596 110,209

Renter Occupied 17,889 163,682 343,358

Vacant 1,610 18,070 37,271

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