Kevin Leor MassachiProfessor Ramcharan PPD 362?12 December 2017University Park Extra Credit The University park neighborhood is a1.
17-square-mile in district in South Los Angeles area of Los Angeles,California. It remains the prideful home of the University of SouthernCalifornia (USC). This bustling residential area happened to be founded nearUSC. In 1880, many citizens came to the area and it had large lots and suburbanambiance. In that process, people migrated south from Bunker Hill into thisarea.
They bolstered the expansion of streetcar routes from Downtown LosAngeles in 1981 Residences started being built between 1885 and 1920’s.University park was the perfect property to select because the area is rapidlydeveloping. Furthermore, USC has contributed to economic growth in the areathrough redevelopment. Also, USC Village was a major 700 million dollarproject. What is mind-boggling in that the amount of student residents as wellas the added protection (DPS) in the area makes it a unique area in LosAngeles. The USC Village hassupplied University park with a bolster in growth due to the tremendous new businessopportunities that opened in the area. Many new shops quick-service restaurantssuch as Cava, Trejo’s Taco, and Wahlburgers have opened there and this willhave a butterfly effect on the area because it will cause further growth andexpansion in the area. Furthermore, new stores such as Target and Trader Joeshave been implemented into the Village, further adding the economy.
We see this neighborhood going through aneven more vast transformation period in the future. The security in the village is also improved;they have on-duty security that guard and closely monitor the area startingeach day at 9pm. When it comes tothe location’s demographic, it has a population of 25,181. Furthermore, it’s a verydiverse demographic.
There appears to be high percentages of Asian and African Americanresidents for the county. Also, the majority of people are the ages of 19-30,with an average age of 23. Around 20,000 people per square mile which is highfor the county. Median per capita individual income $27,749.
The percentage of individuals making belowthe median income is high for the county. As it’s alreadypresent, the average income in the area is signicantly below the average. The mediumincome that’s under the aid of 25 happens to be $10,673.
The median income fromthe ages of 25 to 44 are $25,978. Themedian income front pages 45 to 64 aren’t$32,829. And the median income for ages that are over 65 happened to be$21,573. As you can see the the chart is a healthy bell-curve shape which showsthe distribution is equal. Was also really interesting is that the averagehousehold income during the time was $32,164. Also the median income of eachhousehold was $21,180. Furthermore, the percent increase and decrease in theincome since your 2000 was at around 18%.
Also the percent increase and decreasein income sincerely 2010 was at 0%. The average household net worth was$274,387, and comedians home sale price of $325,000 dollars. It’s also that the sale taxes we’re at a rateof 9%. Lastly, the average householdtotal expenditure was at $33,146.
All inall it’s very interesting how the average net income per home was lower thannational average which points to a strong potential in the area as theproperties in our perspective undervalued given the fact that they’re in agreat location with the boosting entertainment and commercial structure. it’s alsointeresting healthy average consumer spending in the University Park LosAngeles area is significantly lower than the national average. What’s shocked mewas that the tobacco ventures were significantly higher than the othercategories because of that drug infused location. On the other hand, gets incontribution to the lowest among every of the category battalion to get to thearea is not doing well in income as stated above this is a higher crime rates lowerspending situations. As you can see, that area has a strong crime ratepercentage compared to The national average.
What shocked me was that murderrisk was rated higher that every other category significantly. Coming in secondwas the personal crime risk was way above the national average and the robberies. All of these situations are closely relatedto the lower income area and the extra purchases and tobacco sales among withthe automotive theft risk associated to the area.
The education inthe area was perplexing how 23.7% of residents 25 and older have a four-yeardegree. The average for the county was that many people without a High SchoolDiploma Elementary schools. There are schools such as the USC Early ChildhoodProgram, New Designs Charter School, Star Christian School, and Child CareCenter. The USC Early Childhood Program provides a great place for youngchildren to excel because of the connection with the university.
With these asthe education expense. It is critical for education to be I am absolute best asit is depend on how well community drives. The most important metric forsocioeconomical location is that how proceed is the schools are and how wellthe school of doing their standardized test scores. There’s a high correlationbetween school to do better on tests and the overall neighborhood because ofthe Coumadin resources an overall performance. The property we chose was 3665 S Normandie Ave. Someunique facts about it is that it was built in 1925. It has a 3,800 Rentable SFMultifamily low rise.
It also has an asking price of $729,000. Also, it wasoriginally sold in 2016 for $550,000. With its strong historical 100% occupancyand 4 parking spaces in the back Manager lives on site, we see this site tohave super high potential. There is high demand near USC. We could see thisplace being used as as a living space for Students.
Also, there is USC patrol24/7 Proximity to downtown, parks, shopping centers, the coliseum, and otherattractions. The area happens to have anROS rent control of 3%. The LTV will be 75% with a 30 Year Amortization Period.It will also have a 4% Annual interest rate. The IRR will be 9.
75%percent. Theand Pete V Will be $12,919.50. We will also have 4% interest. With an IRR sensitivity set to a five year horizon, we’ll have an exit cap rate 7.40 %. Andwith a ten year horizon of an IRR sensitivity, the exit 9.75%.
All in all, wesee this as a bet that takes on a deal of rick, but hope with the neighborhood’sextensive growth, that our properties value will grow. Work Cited Herstik, Lauren. “U.
S.C. Expands in a ‘Neglected’Neighborhood, Promising Jobs and More.” The New York Times, The NewYork Times, 15 Aug. 2017,www.nytimes.com/2017/08/15/realestate/commercial/usc-village-los-angeles-campus.
html. “Point2 Homes.” Demographics & Statistics -Employment, Education, Income Averages, Crime in University Park – Point2 Homes,www.point2homes.
com/US/Neighborhood/CA/Los-Angeles-County/Los-Angeles/University-Park-Demographics.html. “University Park.” Los Angeles Times, LosAngeles Times, maps.latimes.com/neighborhoods/neighborhood/university-park/.
“University Park.” University Park | Office ofHistoric Resources, City of Los Angeles,preservation.lacity.org/hpoz/la/university-park.