Project 

LA VALLEY GARDEN PLAZA

LA VALLEY GARDEN PLAZA

 

1. Brief Introduction of  LA Valley Garden Plaza-Project:

Invested and developed by California Investment Regional Center, LLC,  La Valley Garden Plaza is located in Valley BLVD, where is densely populated for Chinese. The total investment amount of the project is 9 million USD, and the total construction area of the project is 55200 square feet. It is a commercial plaza project mainly engaged in catering and retail. The market value of the developed property is $13.12 million.

1.1 Developer: California Investment Regional Center, LLC

1.2 Project owners: LA VALLEY GARDN PLAZA LP(Limited Partner)

1.3 Land area: 22970 SQ.FT, about 0.52 AC

1.4 Project address: LA Valley Garden Plaza:9933  VALLEY BLVD EL MONTE CA 91731

1.5 Total development area of the project: 55200 SQ.FT, including commercial plaza of 172000 square feet and two basement floor area of 38000 square feet

1.6 Investment amount of the project: estimated to be $9 million

1.7  Property use of the project: retail and catering industry

1.8  Building height: 32 feet

1.9 Parking lots: building area of the two-story basement is 38,000 square feet, with 90 parking spaces, and there are 20 parking  lots on the ground.  

Total parking lots:110

 

2. Investment Cost and Estimated Profits:

2-1, Software costs

1), Land cost: 2 million USD

2), Total costs of planning and design, construction drawings design ,civil engineering design and landscape engineering design is about 300,000 USD.

3), Total costs of environmental assessment reports, traffic flow reports, air reports, noise reports, and other types of reports costs are about 100,000 USD

4), City Council Drawings Review Costs

5), Accompanying costs of 300,000 USD paid to the municipal government when applying for a construction permit

6), The three years’ project management cost is 500,000 USD(Labor costs, advertising fee, others).

Total: estimated software cost is approximately 3.3 million USD

 

2-2. Hardware Costs (construction engineering costs):

1), About 120,000 USD for demolishing 10,000 square feet of building

2), The construction cost of the two-storey basement parking lot is predicted to be 100 USD per square foot, the building area of the basement is 30,000 square feet, and 38,000 SQL. FT × 80 USD = 3 million USD.

3), The  residential and commercial functional housing in 1F-2F has a building area of 17,200 square feet, and the construction cost is estimated  to be 150 USD per square foot.

17200 SQL. FT × 150 US dollars per square foot = 2.58 million USD

Total hardware costs equal to demolition project + basement project + main building project cost = total project cost

That is: 120,000USD + 3 million USD + 2.58 million USD = 5.7 million USD

Total hardware cost : 5.75 million USD(Total construction cost)

NOTE: The above construction cost is the total contract price.

 

2-3 Total investment cost: software cost of 3.3 million USD + hardware cost of5.7 million USD =9 million USD

Total investment cost is estimated to be 9 million USD

 

2-4, Sales Revenue:

1), The area of salable retail stores on the first floor is 7,200 square feet, and its average market price is 850 USD, and the approximate sales revenue is 6.12 million USD.

2), The 10,000-square-foot catering commercial store on the second floor has a market value of approximately $700 per square foot, and its estimated sales revenue is approximately 7 million USD

The total sales revenue is about 13.12 million USD

 

3. the reason for investing in commercial stores:


1, The plaza has  a oversized parking space, the salable area on 1F to 2F is only 17,200 square feet, while the parking space is a two-storey basements with a construction area of 38,000 square feet, which is more than twice the commercial operating area. In Los Angeles, a commercial store is worthless if it doesn't have enough parking. vice versa

2, The average annual growth rate of the commercial property value in VALLEY BLVD is more than 10 %. We used 7.25 million U.S. dollars to buy three acres land of the hotel project three years ago,  and now the price has gone up to 12.8 million USD per acre.

3. The commercial storefront leasing will be managed and commissioned by the property management company. In order to maintain the positioning, the rental price of the commercial Square will be increased by 3 % -5 % annually. Therefore, each investor and property owner needs to entrust the property management company with unified management and leasing. Each month the property management company is required to charge only 0.50 US dollars per month per square foot.

4, The area around the project is rapidly developing, a 24-hour Wal-Mart supermarket next to the new municipal government office and EL MONTE DMV near the project are being built. There is also a large shopping life square that has been built at the intersection of SANTA ANITAVE and VALLEY, which is not far east of the project.

5, Old buildings around the project will be acquired generally in the future,  and new commercial areas will be replanted and developed.

In the future, the hotel will be the center, and we will invest in the new business area in the east of VALLEY BLVD

Investment in commercial real estate can appreciate quickly.

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