Kevin Leor MassachiProfessor Ramcharan PPD 362?12 December 2017University Park Extra Credit With 1.17-square-mile, University Park is a neighborhoodin the Southern Los Angeles district of Los Angeles. It also remains the pridefulhome of the University of Southern California (USC). This bustling residentialarea happened to be founded near USC.
In 1880, many citizens came to the areaand it had large lots and suburban ambiance. In that process, people migratedsouth from Bunker Hill into this area. They bolstered the expansion ofstreetcar routes from Downtown Los Angeles in 1981 Residences started being developedbetween the years of 1885 to around 1920. University park was the perfectproperty to select because the area is rapidly developing.
Furthermore, USC hascontributed to economic growth in the area through redevelopment. Also, USCVillage was a massive project that was around the cost of around seven hundredmillion dollars. What is mind-boggling in that the amount of student residents aswell as 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 newbusiness opportunities that opened in the area.
Many new shops quick-servicerestaurants such as Cava, Trejo’s Taco, and Wahlburgers have opened there andthis will have a butterfly effect on the area because it will cause furthergrowth and expansion in the area. Furthermore, new stores such as Target andTrader Joes have been implemented into the Village, further adding theeconomy. We see this neighborhood goingthrough an even 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 avery diverse demographic.
There appears to be high percentages of Asian andAfrican American residents for the county. Also, the majority of people are theages of 19-30, with an average age of 23. Around 20,000 people per square milewhich is high for 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. Themedium income that’s under the aid of 25 happens to be $10,673.
The medianincome from the ages of 25 to 44 are $25,978. The median income front pages 45 to 64 aren’t $32,829. And the median income for ages that are over 65 happenedto be $21,573. As you can see the the chart is a healthy bell-curve shape whichshows the distribution is equal. Was also really interesting is that theaverage household income during the time was $32,164. Also the median income ofeach household was $21,180. Furthermore, the percent increase and decrease inthe income since your 2000 was at around 18%. Also the percent increase anddecrease in income sincerely 2010 was at 0%.
The average household net worthwas $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 shockedme was 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 rateslower spending 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 therobberies. All of these situations areclosely related to the lower income area and the extra purchases and tobaccosales among with the 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 yearhorizon , we’ll have an exit cap rate 7.40 %. And with a ten year horizon of an IRR sensitivity, the exit 9.
75%. All in all, we see this as a bet that takeson a deal of rick, but hope with the neighborhood’s extensive growth, that ourproperties 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. “University Park.
” University Park | Office ofHistoric Resources, City of Los Angeles,preservation.lacity.org/hpoz/la/university-park. Logan, Abby Jackson and Bryan. “The University of SouthernCalifornia Dropped $700 Million on a Student ‘Village’ That Includes a TraderJoe’s and a Target.” Business Insider, Business Insider, 26 Aug.