2018 SANTA MONICA, CA 90405

SANTA MONICA DEVELOPMENT OPPORTUNITY TABLE OF CONTENTS

EXECUTIVE SUMMARY PAGE 5 01 • OFFERING HIGHLIGHTS • INVESTMENT OVERVIEW / HIGHLIGHTS • PROPERTY PHOTOS • PROPERTY MAP

FINANCIAL ANALYSIS PAGE 17 02 • FINANCIAL SUMMARY

NON-ENDORSEMENT SOLD COMPARABLES AND DISCLAIMER NOTICE PAGE 21 03 • SOLD COMPARABLES • SOLD COMPARABLES GRAPH NON-ENDORSEMENTS Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or MARKET OVERVIEW sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, PAGE 29 service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee 04 • DEMOGRAPHICS information about this listing to prospective customers. • PICO NEIGHBORHOOD PLAN

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DISCLAIMER THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN 2018 PICO BOULEVARD APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or SANTA MONICA, CA 90405 warranties, expressor implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

ACTIVITY ID: ZAB0140245 WWW.MARCUSMILLICHAP.COM EXECUTIVE SUMMARY

2018 PICO BOULEVARD

2018 PICO BOULEVARD | 5 OFFERING HIGHLIGHTS

2018 PICO BOULEVARD SANTA MONICA, CA 90405

DEVELOPMENT OPPORTUNITY

OFFERING PRICE LAND SQUARE FEET $2,025,000 4,500 SF

VITAL DATA

2018 Pico Boulevard Address Santa Monica, CA 90405

Price $2,025,000

Units 2 - Retail and Office

APN 4273-003-004

Zoning NC Neighborhood Commercial

Year Built Approximately 1947

Building Square Feet 1,593 Square Feet

Lot Size 4,500 Square Feet

Land Price / Square Feet $450 2018 PICO BOULEVARD

6 | EXECUTIVE SUMMARY 2018 PICO BOULEVARD | 7 Untitled map

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INVESTMENT OVERVIEW INVESTMENT HIGHLIGHTS

• Santa Monica Development Opportunity Located 500 Feet from Santa Monica The subject property is located on Pico Boulevard between 20th and 21st Street in the city of College Santa Monica and only 500 feet from . Sitting on a 4,500 square foot lot • Zoned: (NC) Neighborhood Commercial and zoned NC Neighborhood Commercial, 2018 Pico Boulevard presents a prime development opportunity due to its urban infill location and high barriers to entry market. There is currently • Land Square Feet: 4,500 one tenant occupying both buildings on a month-to-month lease at $3,850/monthly, which is 50 • Lineal Frontage on Pico Boulevard of 45 Feet with 21,795± Vehicles Per Day percent below market. The existing income helps lower development cost during entitlements. Traveling East and West

• A ‘Very Walkable’ Walk Score of 76 Santa Monica’s Pico District is surrounded by Downtown Santa Monica and Ocean Park on the West and Sunset Park on the South. Located within a dense infill area and surrounded by popular • Outstanding Demographics in a Three-Mile Radius: shopping and dining within a 10-minute walk, Pico District has a 76 “Walk Score” and a 81 “Bike • $89,000+ Household Income Score” with notable amenities conveniently located in the immediate area including Whole Foods, • 280,000+ Population Santa Monica College (30,000+ enrolled students) and the Santa Monica Airport. A five-minute drive takes you to some of Southern ’s top travel destinations including Santa Monica Pier and beach, and the Third Street Promenade.

In addition to the subject property’s impressive demographics within a three-mile radius ($89,000+ average household income and 280,000+ population count), the site has phenomenal visibility traveling both East and West with 21,795± vehicles per day and 45 feet of frontage on Pico Boulevard.

Santa Monica’s retail and multifamily markets exhibit strong fundamentals with high barriers to SANTA entry and strong demand for both product types. CoStar reports retail vacancy in the submarket at 5.1 percent, multifamily vacancy is 5.3 percent. While development in Santa Monica tends to be limited, more new units are expected to be delivered here in 2020 with over 1,000 units currently MONICA under construction. 8 | EXECUTIVE SUMMARY california2018 PICO BOULEVARD | 9 10 | EXECUTIVE SUMMARY 2018 PICO BOULEVARD

PICO BOULEVARD

21,795± VPD 2018 PICOBOULEVARD | 11 Blank Map

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2018 PICO BOULEVARD

SANTA MONICA COLLEGE

3RD STREET PROMENADE

SANTA MONICA AIRPORT

SANTA MONICA PIER

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12 | EXECUTIVE SUMMARY 2018 PICO BOULEVARD | 13 ZONING NC Neighborhood Commercial

This Zoning District is intended to maintain and enhance small-scale 2018 PICO BLVD SUBJECT PROPERTY neighborhood shopping districts that provide daily goods and services 2018 PICO BLVD easily accessible from surrounding residential neighborhoods while also serving a sub-regional role. This District provides for a scale and character of development that is pedestrian-oriented and which tends to attract and promote a walk-in clientele. Development within this District should maximize human-scaled elements while providing a sensitvie transition between these uses and neighboring residential areas. Ground floor uses include active, local-serving retail and service commercial uses such as small restaurants, laundromats, dry cleaners, beauty/barber shops, and clothing and grocery stores. Pico Boulevard is a local-serving, commercial boulevard that provides an enhanced environment for pedestrians and includes a wider choice of local- serving retail, expanded mobility, and shared parking.

SANTA MONICA COLLEGE

2018 PICO BLVD 2018 PICO BLVD

2018 PICO BLVD

14 | EXECUTIVE SUMMARY 2018 PICO BOULEVARD | 15 FINANCIAL ANALYSIS

2018 PICO BOULEVARD

2018 PICO BOULEVARD | 17 FINANCIAL SUMMARY

Summary Price: 2,025,000 Down Payment: 100% 2,025,000 Year Built: 1948 (approximately) Building SF: 1,593 Lot SF: 4,500 APN: 5180-008-001

Value Indicators Cost per Building SF: 1,271.19 Cost per Land SF: 450.00

Annual Operating Data Estimated Expenses Current Current Pro Forma Scheduled Gross Income: 46,200 Property Tax 1.15% 23,288 23,288 Vacancy: 0 Insurance ($/SF): 0.50 797 797 Gross Operating Income: 46,200 Utilities: 50 600 600 Expenses: (24,684) Net Operating Income: 21,516 Total Expenses 55.00% $24,684 $24,684 Per SF 15.50 15.50

Notes & Assumptions

[1] Currently there is one month-to-month lease at $3850 for the entire property. [2] All expenses have been estimated.

18 | FINANCIAL ANALYSIS 2018 PICO BOULEVARD | 19 SOLD COMPARABLES

2018 PICO BOULEVARD

2018 PICO BOULEVARD | 21 2018 Pico Blvd, Jay Ruby

Sold Comps

1819 Cloverfield Blvd 700 Colorado Ave 716 Colorado Ave 11600 Santa Monica Blvd 11700 Santa Monica Blvd 718 Hampton Dr Lincoln Boulevard 2740 Main St 1530 Pico Blvd 416 Lincoln Blvd 12431 Rochester Ave

SOLD COMPARABLES SUMMARY

PROPERTY NAME SALES PRICE COE LAND SF LAND PRICE/SF

2018 Pico Boulevard, Santa Monica, CA 90405 $2,025,000 --- 4,502 (0.10 AC) $449.80

1 1819 Cloverfield Boulevard, Santa Monica, CA 90404 $16,126,000 01/17/2020 38,263 (0.88 AC) $421.42

2 700 Colorado Avenue, Santa Monica, CA 90401 $6,823,352 12/26/2019 10,720 (0.25 AC) $636.50

3 716 Colorado Avenue, Santa Monica, CA 90401 $5,351,648 12/26/2019 9,418 (0.22 AC) $568.26

4 11600 , , CA 90025 $16,000,000 06/19/2019 28,356 (0.65 AC) $564.25

5 11700 West Santa Monica Boulevard, Los Angeles, CA 90025 $7,500,000 05/03/2019 12,981 (0.30 AC) $577.77

6 718-720 Hampton Drive, Venice, CA 90291 $3,600,000 04/23/2019 6,098 (0.14 AC) $590.32

7 Lincoln Boulevard, Venice, CA 90291 $4,000,000 01/22/2019 8,276 (0.19 AC) $483.33

8 2740 Main Street, Santa Monica, CA 90405 $2,925,000 08/30/2018 5,924 (0.14 AC) $493.75

9 1530 Pico Boulevard, Santa Monica, CA 90405 $4,800,000 04/25/2018 11,160 (0.26 AC) $430.11

10 416 Lincoln Boulevard, Venice, CA 90291 $3,250,000 10/04/0017 8,006 (0.18 AC) $405.93

11 12431 Rochester Avenue, Los Angeles, CA 90025 $7,100,000 06/13/2017 14,518 (0.33 AC) $489.05

AVERAGE LAND PRICE/SQUARE FOOT $514.61

22 | SOLD COMPARABLES 2018 PICO BOULEVARD | 23 SOLD COMPARABLES SOLD COMPARABLES

SUBJECT PROPERTY 1819 CLOVERFIELD BOULEVARD 700 COLORADO AVENUE 718-720 HAMPTON DRIVE 1 2 SANTA MONICA, CA 90401 6 7 LINCOLN BOULEVARD 8 2740 MAIN STREET 2018 PICO BOULEVARD, SANTA MONICA, CA 90405 SANTA MONICA, CA 90404 VENICE, CA 90291 VENICE, CA 90291 SANTA MONICA, CA 90405

SALES PRICE $2,025,000 SALES PRICE $16,126,000 SALES PRICE $6,823,352 SALES PRICE $3,600,000 SALES PRICE $4,000,000 SALES PRICE $2,925,000

Sale Date -- Sale Date 01/17/2020 Sale Date 12/26/2019 Sale Date 04/23/2019 Sale Date 01/22/2019 Sale Date 08/30/2018

Land SF 4,502 Land SF 1,562 Land SF 10,720 Land SF 6,098 Land SF 8,276 Land SF 5,924

Land Price/SF $449.80 Land Price/SF $421.45 Land Price/SF $636.50 Land Price/SF $590.32 Land Price/SF $483.33 Land Price/SF $493.75

Zoning NC2 Zoning SMM1 Zoning DCP-TA Zoning C2 Zoning LAC2 Zoning NC

716 COLORADO AVENUE 11700 W SANTA MONICA BOULEVARD 3 4 11600 SANTA MONICA BOULEVARD 5 9 1530 PICO BOULEVARD 10 416 LINCOLN BOULEVARD 11 12431 ROCHESTER AVE SANTA MONICA, CA 90401 LOS ANGELES, CA 90025 LOS ANGELES, CA 90025 SANTA MONICA, CA 90405 VENICE, CA 90291 LOS ANGELES, CA 90025

SALES PRICE $5,351,648 SALES PRICE $16,000,000 SALES PRICE $7,500,000 SALES PRICE $4,800,000 SALES PRICE $3,250,000 SALES PRICE $7,100,000

Sale Date 12/26/2019 Sale Date 06/19/2019 Sale Date 05/03/2019 Sale Date 04/25/2018 Sale Date 10/04/2017 Sale Date 06/13/2017

Land SF 9,418 Land SF 28,356 Land SF 12,981 Land SF 11,160 Land SF 8,006 Land SF 14,518

Land Price/SF $568.26 Land Price/SF $564.25 Land Price/SF $577.77 Land Price/SF $430.11 Land Price/SF $405.93 Land Price/SF $489.05

Zoning DCP-TA Zoning LAC2 Zoning LAC2 Zoning SMC2 Zoning C2 Zoning LAC2

24 | SOLD COMPARABLES 2018 PICO BOULEVARD | 25 SOLD COMPARABLES

AVERAGE LAND PRICE/SQUARE FOOT

700.00

600.00

500.00 Avg. $514.61

400.00

300.00

200.00

100.00

449.8 421.45 636.5 568.26 564.25 577.77 590.32 483.33 493.75 430.11 405.93 489.05 0.00 SP 1 2 3 4 5 6 7 8 9 10 11

SP 2018 Pico Boulevard, Santa Monica, CA 90405 6. 718-720 Hampton Drive, Venice, CA 90291

1. 1819 Cloverfield Boulevard, Santa Monica, CA 90404 7. Lincoln Boulevard, Venice, CA 90291

2. 700 Colorado Avenue, Santa Monica, CA 90401 8. 2740 Main Street, Santa Monica, CA 90405

3. 716 Colorado Avenue, Santa Monica, CA 90401 9. 1530 Pico Boulevard, Santa Monica, CA 90405

4. 11600 Santa Monica Boulevard, Los Angeles, CA 90025 10. 416 Lincoln Boulevard, Venice, CA 90291

5. 11700 West Santa Monica Boulevard, Los Angeles, CA 90025 11. 12431 Rochester Avenue, Los Angeles, CA 90025

26 | SOLD COMPARABLES MARKET OVERVIEW

2018 PICO BOULEVARD

2018 PICO BOULEVARD | 29 DEMOGRAPHICS HIGHLIGHTS 26,099 SANTA MONICA 2019 POPULATION IN 1-MI RADIUS Santa Monica is 8.3 square miles of businesses and homes; high profile corporate headquarters, a large tech entertainment district, beautiful Santa Monica College 3rd Street Promenade & Downtown Santa Monica Santa Monica Beach & Pier (Pacific Park) beaches, luxury hotels, five-star restaurants and some of the finest Over 30,000 students currently enrolled Master makeover in process OVer 8 million visitors per year 0.1 mi from Subject Property 2.1 mi from Subject Property 2.0 mi from Subject Property 279,945 shopping in Southern California. 2019 POPULATION IN 3-MI RADIUS Tourists and residents alike can enjoy the city’s amenities easily, while only being a short distance from its neighboring cities such as Pacific Palisades, Brentwood, , Culver City, Venice, Marina Del Rey $82,656 and Playa Vista. MEDIAN HOUSEHOLD INCOME IN 1-MI RADIUS

$89,143 Santa Monica Place Silicon Beach - Google Office in Venice Beach Santa Monica Municipal Airport MEDIAN HOUSEHOLD INCOME PICO NEIGHBORHOOD PLAN Macerich-owned, 550,000 SF shopping center Home to Google, Hulu, YouTube, Facebook, etc Closing in 2028 with plans to convert into a park/rec facility IN 3-MI RADIUS 1.8 mi from Subject Property 2.4 mi from Subject Property 2.0 mi from Subject Property The Pico neighborhood is located in the central part of the City, adjacent to Santa Monica’s industrial areas to the north and sharing 11,814 Pico Boulevard with the residents of Sunset Park to the south. The # OF HOUSEHOLDS IN Pico neighborhood has a rich cultural and social heritage and strives to 1-MI RADIUS maintain its culturally diverse and family-oriented resident base in the face of increasing redevelopment pressure.

138,308 The character of Pico Boulevard will be transformed from an auto- # OF HOUSEHOLDS IN 3-MI RADIUS oriented thoroughfare into a neighborhood-serving boulevard that is

activated by local-serving commercial uses. (see page 32) Venice Beach Los Angeles International Airport (LAX) Bergamot Station Arts Center 2nd-largest tourist attraction in Southern California World’s 2nd busiest airport; 4th busiest in the USA Southern California’s largest creative arts complex 3.0 mi from Subject Property 10.2 mi from Subject Property 1.1 mi from Subject Property 30 | MARKET OVERVIEW 2018 PICO BOULEVARD | 31 pico | chapter 2.4 boulevards: pico

*All information found on pages PICO NEIGHBORHOOD PLAN PICO NEIGHBORHOOD PLAN 28 and 29 are directly from CENTINELA BLVD Vision the City of Santa Monica’s Blvd STEWART STREET TO Planning & Community Pico Boulevard is envisioned as an attractive, 20TH STREET: STEWART ST Mixed-Use Pico Boulevard local-serving boulevard that provides an Mixed-Use Boulevard Low, Neighborhood Commercial, Parks and Low VISIT WEBSITE enhanced environment for pedestrians. The Neighborhood Location Open Space ¨¦§10 26T vision includes a wider choice of local-serving H ST Commercial Pico Boulevard is an important connection The character of Pico Boulevard from retail, expanded mobility, shared parking and Parks and D Open between , Santa Monica Stewart Street to 20th Street is transformed V an enhanced pedestrian environment to create L B Space College, Downtown and the Pacific Ocean. from an auto-oriented thoroughfare into O an attractive and cohesive streetscape. CLOVERFIELD C 2 I 6 P TH ST Pico Boulevard extends from the City limits a neighborhood-serving boulevard that at west to the Beach at the An area plan for the length of the boulevard is activated by local-serving commercial crossroads between the Civic Center District from Centinela Avenue to 9th Street identifies uses and enhanced pedestrian and bicycle

D

¨§¦10 V and the Ocean Park neighborhood. neighborhood destinations at the eastern

L connections to and from the neighborhoods.

B 20TH ST edge of the City to serve local shopping needs Virginia Avenue Park and the new Pico K R and at Santa Monica College to serve the 2 A Expo Alignment Branch Public Library provide a catalyst to STEWART STREET TO 20TH STREET: Virginia Avenue Park is the cultural heart of the Pico D 0TH ST P V Expo Station needs of the students, faculty and adjacent L neighborhood. The above mural references the weekly farmer’s market that draws crowds from all N improve the pedestrian vitality of the nearby B A over the City. E neighbors. The neighborhood centers establish O neighborhoods and supply a focal point for C 17TH ST C I 17T O H ST parking districts that create shared parking P the area. Mixed-use developments on the opportunities to efficiently provide parking north side of the boulevard include pedestrian for multiple uses including local-serving retail, Boulevard. Development along Pico Boulevard improve circulation and provide visual relief 14TH ST 14TH ST pathways connecting the boulevard to the housing and open space. has occurred in a piecemeal fashion with along the 1,800-foot-long “superblock” on the adjacent neighborhoods, breaking up the no planned efforts to address the parking north side of the boulevard between Stewart Mixed-use development with ground floor excessively long block between Stewart Street and circulation issues in the area or to make Street and Cloverfield Boulevard. To enhance 11TH ST retail and dining is encouraged to better and Cloverfield Boulevard. needed physical connections to adjacent the activity generated by Virginia Avenue Park Neighborhood Commercial Pacific Ocean serve local users. Along the length of the Mixed-Use Boulevard Low neighborhoods. and the new Pico Branch Public Library, local- BLVD corridor, new buildings will form a stronger Current Conditions, Trends and Issues LINCOLN General Commercial serving and pedestrian-oriented retail and Medium -Density Housing relationship to the street by bringing buildings This section of Pico Boulevard is dominated High- Density Housing Strategic Approach sit-down dining uses are encouraged near the forward and locating parking to the rear by auto-oriented commercial uses with Institutional/Public Lands “Our neighborhood should be clean The Mixed-Use Boulevard Low designation intersection of Cloverfield Boulevard. Parks and Open Space or underground. Enhanced sidewalks and surface parking lots adjacent to the sidewalk and safe with...a grocery store in encourages replacement of the auto-oriented !M Expo Stations streetscape improvements along with new and buildings located toward the rear of the 4TH ST uses along this section of Pico Boulevard while Land Use Parameters Expo Line walking distance and coffee houses transit amenities create a lively local-serving parcels. Virginia Avenue Park is an asset to adding new housing and additional community (See chapter 2.1 Land Use Policy and Designations for MAIN ST around the corner.” shopping environment. the surrounding area, but it alone cannot further information.) benefits, such as shared parking, plazas and -commenT From land Use BoUlevards WorkshoP mitigate the impacts that result from the green space. Such benefits may also include 32 | MARKET OVERVIEW heavy automobile traffic on Cloverfield 2018 PICO BOULEVARD | 33 SANTA MONICA LUCE | 2.4 - 43 new north-south pedestrian pathways to

2.4 - 46 | SANTA MONICA LUCE | EXCLUSIVELY LISTED BY DAVID W. RIDGWAY 2018 PICO BOULEVARD FIRST VICE PRESIDENT INVESTMENTS SANTA MONICA, CA 90405 515 S. FLOWER STREET, SUITE 500 ACTIVITY ID: ZAB0140245 LOS ANGELES, CA 90071 CA 1129818

O: (213) 943-1890 | M: (213) 446-3500 [email protected]