The document summarizes renovations completed at the 4 unit Palmeras Residences apartment building located near USC aimed at housing students. The extensive remodel in 2022 included new plumbing, electrical, HVAC, windows, kitchens, appliances, and alarm systems. Each of the 4 units has 3 bedrooms and 3 bathrooms. The document discusses the appeal of USC students as tenants and potential for increased rents and income. A rent roll shows current rents between $1,500-1,667 per bedroom and expenses. Upside potential is outlined to increase rents to $2,000 per bedroom and charge for parking and wifi.

1. Introducing the all new 4 unit Palmeras Residences designed for USC students only 2 blocks from campus. The entire building was gutted with
the extensive remodel being finished in 2022. The remodel includes all new plumbing, new electrical with a new 5 meter panel, new central air
& heat in each unit, new high efficiency tankless water heaters, new windows, new kitchens with appliances, new washer & dryer inside each
unit, new bathrooms, and whole unit alarm systems.
USC students as tenants is appealing because of the stability and high returns. 1) Rent comps of off campus housing range from $2000 to
$2700/bedroom/month, 2) Lease guarantors are usually high net worth parents, 3) Many have cost of living expenses in their student loan
stipends, 4) Tenants move out when they graduate in one to 2 years giving the Landlord the opportunity to charge higher rents without
eviction or relocation, 5) During a downturn school enrollment goes up ensuring demand continues.
Each of the 4 units is 3 bedrooms & 3 bathrooms and inside the DPS patrol zone where USC's Department of Public Safety patrols the area near
campus 24 hours a day. Each bedroom has its own full bathroom. The units come fully furnished with alarm systems and new appliances. There
are 12 parking spots. Tenants pay for gas, electricity, and alarm company fees. Landlord pays for internet, water, gardener, and trash. Palmeras
Residences is 5 blocks from the Expo/Vermont Metro Station and the new Lucas Museum of Narrative Art to open in 2023 which will be a giant
outdoor restaurant and shopping experience similar to The Grove and Americana.
Upside potential is increase in rents to $2000/bed per month, charging up to $100/car for parking, and charging $50/unit for WiFi.
2022 RENT ROLL
ARAM GABOUDIAN
CELL 626-242-8197
ARAMREALESTATE@GMAIL.COM
WWW.THEARAMREALESTATETEAM.COM
CALBRE LICENSE 01493911
REMODELED 4 UNITS
DESIGNED FOR USC STUDENTS
1320 WEST 37TH STREET, LOS ANGELES
UNIT BEDROOMS BATHROOMS TENANTS RENT/TENANT/MONTH TOTAL/MONTH
A 3 3 3 $1,500 $4,500
B 3 3 3 $1,500 $4,500
C* 3 3 3 $1,667 $5,000
D* 3 3 3 $1,667 $5,000
PARKING $0
TOTAL MONTHLY RENT $19,000
TOTAL YEARLY RENT $228,000
EXPENSES/YEAR CURRENT PROFORMA
TRASH $3,756 $3,756
WATER $2,400 $2,400
POWER $900 $900
WIFI $1,500 $1,500
TAXES $43,737 $43,737
INSURANCE $3,700 $3,700
GARDENER $720 $720
TOTAL COSTS/YEAR $56,713 $56,713
GROSS RENTS $228,000 $288,000*
PARKING $0 $7,200**
WIFI $0 $2,400
TOTAL INCOME $228,000 $297,600
NOI/YEAR $171,286 $240,886
PRICE $3,499,000 $3,499,000
CAP RATE 4.9% 6.9%
GRM 15.3 12.1
CAP RATE, CURRENT & PROFORMA
*PROFORMA RENTS AT $2000/MO/BEDROOM
**ASSUMPTION IS 6 CARS
*UNITS C & D ARE CURRENTLY VACANT ACTIVELY MARKETED

2. RENTAL COMP: West 27th Place is a large off campus apartment building for students approximately 1 mile from the USC campus.
The rate shown is per bedroom. In comparison the rents are approximately $1000/bedroom/month more than Palmeras
Residences at 1320 West 37th Street.