CAPITAL
DEVELOPMENT FUND RAISING
ACQUISITION AND REHABILITATION OF
A 40 BEDS PROPERTY
TO BE USE AS CCN House
TRANSITIONAL HOUSING SHELTER FOR THE HOMELESS
If you like to make
your donation by check ,please made the check payable to:
Christ Channel Network Inc.
or CCN House Community Development Agency
and
mail to : President/CEO
Christ Channel Network/CCN House
P.O.BOX
111589
LOS ANGELES, CA.90011
Our IRS tax deductions receipt will be mail to you, for your next tax returns.
READ BELOW THE PROPERTY APPRAISAL REPORTS
Property Address: 1526 5th Avenue, Los Angeles, CA 90019.
Legal Description: Central Arlington Heights Lot 19 APN 5072-024-021 T.
Guide Residence: 633 G-5
Neighborhood
Description: The subject is located in a well established, mixed use area of predominately older
improvements, in the Arlington Heights area of Los Angeles. Improvements vary in age, architectural styles
and uses. Access to schools, consumer needs, freeways and employment centers are located nearby. Downtown
Los Angeles is located three miles east. Overall neighborhood maintenance level is average. The subject's
area is not located in a flood zone.
Land use ratio is as follows...55% Single Family, 20% 2-4 Units, 10% Apartment Units, 14% Commercialand 1% Vacant.
Market Conditions: General market conditions for all types of real estate continue to decline.
Loan discounts, interest buy downs and sales concessions are now prevalent in the marketplace, as are REO and short
sales. However due to the desirability of the area, competition has softened the decline
when compared to most area's in Los Angeles County. Despite
the market, transactions remain steady.
Property Description:
The subject property
is a triplex, consisting of three detached buildings. The main building (unit #1) was built in 1907 and appears to have a
room additions added after the original structure was built. Room A-7 and the laundry room appear to be the added areas. When
this area is subtracted, the subject measures the same size as is noted in public records. The additions are of similar quality
and conformity and appear to have been built more than 50 years ago. This property is being used as a rooming house as this
unit contains 17 bedrooms and 7 & 3/4 bathrooms. It has a full kitchen but no sitting or living rooms. The 3/4 bath has
a half bath and a separate shower room (1/4). The exterior is in overall good condition for its age. The
exterior stucco looks good as do the eaves. No wood rot was noted and the eaves look freshly painted. No major cracks in the
stucco was noted either. The quality of construction is good. Some minor paint to the wood trim of the addition is needed.
Overall there does not appear to be any major repairs needed. The roof was only partially seen but looks good. From what I
could see, the composition shingle roof looks like it was replaced within the past 10 years. The interior also shows good
quality materials. Notice the wood railing and staircase in the photo addenda. Overall the interior is average with only cosmetic
repairs needed, such as paint. The attic has sloped ceilings and is only for storage. The stairs leading up to the attic are
very steep, bordering on dangerous. It needs hand railing, the carpet removed and some of the stairs seemed ready to break
under my feet. You can tell this area was built over 100 years ago. The room was locked with a deadbolt, regardless, that
staircase needs to be addressed. Additionally there is no handicap access to the subject. Unit #2 was not part of the original construction. This unit appears to be 80 to
90 years old. It is a one bed one bath unit, complete with a small living room and kitchen. This unit shows extreme deferred
maintenance. It appears as if nothing has been done in terms of maintenance to the exterior. Most of the wood siding and eaves
are rotted out. Please refer to the photo addenda. The roof is composition roll but is in very poor condition and needs replacement,
as do all doors and windows. I strongly suggest an inspection by a licensed contractor to get a better estimate of the cost
to cure the deferred maintenance. I could only view two sides of this unit, do to it's proximity on the lot. It literally
sits on the fence line with the adjacent lots. The interior is only slightly better in condition than the
exterior. Unit #3 is new construction. Please refer to the photo addenda. This
unit is approximately 75% complete. The exterior is complete with the exception of exterior siding and roof covering. The
interior lacks drywall, floor coverings, kitchen cabinets and bathroom. Plumbing and electrical are in place. I've seen the
blue prints and permits for this unit. When completed it will be a studio unit with a kitchen and bathroom.
Deferred Maintenance: Unit #1 is in above average condition. Deferred maintenance includes repaint interior
walls $4,500, rear electrical panel has some exposed wires (see photo addenda) $500, repair attic stairs $1,000, repaint rear
eaves and misc minor repairs $1,500. Total estimated cost to cure deferred maintenance $7,500.
Unit #2 shows extreme deferred maintenance including exterior walls
need refinishing and repainting $30,000 minimum. Cost includes replacement of facia, eaves and wood siding as needed. These
areas show extreme wood rot. Roof need replacement $5,000. Cost includes complete replacement of roof including sheeting and
comp shingle roof. Interior walls need repainting $1,000, Floor coverings need replacement $2,500, windows need replacement
$3,500, and misc repairs $1,500. Total estimated cost to cure deferred maintenance is $43,500. This is an estimate of repairs
from what is visible. I am not a contractor. I strongly suggest an inspection by a licensed contractor to receive a professional
estimate. With the amount of deferred maintenance seen, it might be more cost effective to tear down the
existing structure and rebuild a new one. Unit #3 is new construction. Currently the structure is about 70%
complete. Currently it lacks roof covering ($3,000), exterior walls are ready for stucco or siding ($4,500), interior needs
drywall, kitchen and bath fixtures and floor coverings ($17,000), electrical and plumbing ($,2,000). Total estimated cost
to finish this unit is approximately $26,500. There is a storage structure at the rear of this unit. It
is approximately 64 sq ft and its exterior is as finished as the unit #3. Estimated cost to finish this storage unit is $4,000
for roof and siding. Total estimated cost to cure deferred maintenance is approx. $81,500.
Market Analysis: The subject is a unique property in that the use is a rooming house. There were no
known similar sales found. This is not your average triplex nor can it be valued as one, since the income potential is much
greater than a traditional triplex could garner in this area. Analysis included comparisons to apartments, 3 to 4 unit properties
similar in size, rental market survey and cap rate analysis. Market conditions addenda does not apply due to the lack of comparables.
Reconciliation: The sales comparison analysis is considered the most reliable indicator of market value.
However due to the subject's use, the only reliable indicator of value is the income approach. The cost approach was not used.
The subject's Potential Gross Income is $153,480. The subject's Net Operating Income is $112,300. The cap rates in the subject's
general demand area for residential rental units range from 6.5 to 9.5%. 8% was used for the subject, indicating a value of
$898,400. After an analysis of the market, considering all factors affecting
value, it is my opinion that the market value of the subject. As of July 7, 2010 is $900,000.
Respectively Submitted by,
Richard Estrella
Certified
Residential Appraiser
Lic# AR007061
