Site Loader

Kevin Leor Massachi

Professor Ramcharan

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

PPD 362?

12 December 2017

University Park Extra Credit

The University park neighborhood is a
1.17-square-mile in district in South Los Angeles area of Los Angeles,
California. It remains the prideful home of the University of Southern
California (USC). This bustling residential area happened to be founded near
USC. In 1880, many citizens came to the area and it had large lots and suburban
ambiance. In that process, people migrated south from Bunker Hill into this
area. They bolstered the expansion of streetcar routes from Downtown Los
Angeles in 1981 Residences started being built between 1885 and 1920’s.
University park was the perfect property to select because the area is rapidly
developing. Furthermore, USC has contributed to economic growth in the area
through redevelopment. Also, USC Village was a major 700 million dollar
project. What is mind-boggling in that the amount of student residents as well
as the added protection (DPS) in the area makes it a unique area in Los
Angeles.  

 

 

 

 

 

 

 

 

 

 

 

The USC Village has
supplied University park with a bolster in growth due to the tremendous new business
opportunities that opened in the area. Many new shops quick-service restaurants
such as Cava, Trejo’s Taco, and Wahlburgers have opened there and this will
have a butterfly effect on the area because it will cause further growth and
expansion in the area. Furthermore, new stores such as Target and Trader Joes
have been implemented into the Village, further adding the economy.  We see this neighborhood going through 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 starting
each day at 9pm.

 

 

 

 

 

 

 

 

 

 

 

 

 

When it comes to
the location’s demographic, it has a population of 25,181. Furthermore, it’s a very
diverse demographic. There appears to be high percentages of Asian and African American
residents 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 high
for the county. Median per capita individual income $27,749.  The percentage of individuals making below
the median income is high for the county.

 

 

 

 

 

 

 

 

 

As it’s already
present, the average income in the area is signicantly below the average. The medium
income that’s under the aid of 25 happens to be $10,673. The median income 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 happened to be
$21,573. As you can see the the chart is a healthy bell-curve shape which shows
the distribution is equal. Was also really interesting is that the average
household income during the time was $32,164. Also the median income of each
household was $21,180. Furthermore, the percent increase and decrease in the
income since your 2000 was at around 18%. Also the percent increase and decrease
in 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 rate
of 9%.  Lastly, the average household
total expenditure was at $33,146.  All in
all it’s very interesting how the average net income per home was lower than
national average which points to a strong potential in the area as the
properties in our perspective undervalued given the fact that they’re in a
great location with the boosting entertainment and commercial structure.

 

             it’s also
interesting healthy average consumer spending in the University Park Los
Angeles area is significantly lower than the national average. What’s shocked me
was that the tobacco ventures were significantly higher than the other
categories because of that drug infused location. On the other hand, gets in
contribution to the lowest among every of the category battalion to get to the
area is not doing well in income as stated above this is a higher crime rates lower
spending situations.

            As you can see, that area has a strong crime rate
percentage compared to The national average. What shocked me was that murder
risk was rated higher that every other category significantly. Coming in second
was the personal crime risk was way above the national average and the robberies.  All of these situations are closely related
to the lower income area and the extra purchases and tobacco sales among with
the automotive theft risk associated to the area.

 

The education in
the area was perplexing how 23.7% of residents 25 and older have a four-year
degree. The average for the county was that many people without a High School
Diploma Elementary schools. There are schools such as the USC Early Childhood
Program, New Designs Charter School, Star Christian School, and Child Care
Center. The USC Early Childhood Program provides a great place for young
children to excel because of the connection with the university. With these as
the education expense. It is critical for education to be I am absolute best as
it is depend on how well community drives. The most important metric for
socioeconomical location is that how proceed is the schools are and how well
the school of doing their standardized test scores. There’s a high correlation
between school to do better on tests and the overall neighborhood because of
the Coumadin resources an overall performance.

            The property we chose was 3665 S Normandie Ave. Some
unique facts about it is that it was built in 1925. It has a 3,800 Rentable SF
Multifamily low rise. It also has an asking price of $729,000. Also, it was
originally sold in 2016 for $550,000. With its strong historical 100% occupancy
and 4 parking spaces in the back Manager lives on site, we see this site to
have super high potential. There is high demand near USC. We could see this
place being used as as a living space for Students. Also, there is USC patrol
24/7 Proximity to downtown, parks, shopping centers, the coliseum, and other
attractions.

 

The area happens to have an
ROS 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. The
and 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 %.  And
with a ten year horizon of an IRR  sensitivity, the exit 9.75%. All in all, we
see this as a bet that takes on a deal of rick, but hope with the neighborhood’s
extensive 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 New
York 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, Los
Angeles Times, maps.latimes.com/neighborhoods/neighborhood/university-park/.

 

“University Park.” University Park | Office of
Historic Resources, City of Los Angeles,
preservation.lacity.org/hpoz/la/university-park.

 

Post Author: admin

x

Hi!
I'm Lewis!

Would you like to get a custom essay? How about receiving a customized one?

Check it out