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Kevin Leor Massachi

Professor Ramcharan

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PPD 362?

12 December 2017

University Park Extra Credit

With 1.17-square-mile, University Park is a neighborhood
in the Southern Los Angeles district of Los Angeles. It also 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 developed
between the years of 1885 to around 1920. 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 massive project that was around the cost of around seven hundred
million dollars. 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.

 

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

 

Logan, Abby Jackson and Bryan. “The University of Southern
California Dropped $700 Million on a Student ‘Village’ That Includes a Trader
Joe’s and a Target.” Business Insider, Business Insider, 26 Aug.
2017, www.businessinsider.com/usc-700-million-student-village-photos-2017-8.

 

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