OFFERING MEMORANDUM

David Knowlton, SIOR, CCIM FOR SALE Executive Vice President 949.468.2307 RARE 0.438 ACRE RESIDENTIAL/COMMERCIAL DEVELOPMENT OPPORTUNITY [email protected] LOCATED IN THE HEART OF SANTA MONICA’S LINCOLN BLVD NEIGHBORHOOD CORRIDOR Cal DRE Lic #00893394

2537 Lincoln Boulevard, Santa Monica, CA 90405 Disclaimer:

Information included or referred to herein is furnished by third parties and is not guaranteed as to its accuracy or completeness. You understand that all information included or referred to herein is confidential and furnished solely TABLE OF CONTENTS for the purpose of your review in connection with a potential purchase of the subject property. Independent estimates of pro forma income and expenses should be developed by you before any decision is made on whether to make any purchase. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual documents to which they relate. The asset owner(s), their servicers, representatives and/ I EXECUTIVE SUMMARY or brokers, including but not limited to NAI Capital Inc., and their respective agents, representatives, affiliates and employees, (i) make no representations A. Opportunity Overview...... 2 or warranties of any kind, express or imp lied, as to any information or B. Property Highlights & Sale Terms...... 3 projections relating to the subject asset(s), and hereby disclaim any and all such warranties or representations, and (ii) shall have no liability whatsoever arising from any errors, omissions or discrepancies in the information. Any II THE OFFERING solicitation for offers to purchase the subject asset(s) is subject to prior A. Property Overview...... 4 placement and withdrawal, cancellation or modification without notice. B. Aerials...... 5 C. Location Maps...... 7 Contact Information D. Assessor’s Parcel Map...... 8 E. Zoning Overview...... 9 David Knowlton, SIOR, CCIM F. Demographics...... 11 Executive Vice President 949.468.2307 G. Retail Trade Aerial...... 12 [email protected] Cal DRE Lic #00893394 III AREA OVERVIEW NAI Capital A. Greater Region ...... 13 1920 Main Street, Suite 100 B. City of Santa Monica...... 14 Irvine, CA 92614 C. Local Economy...... 15 D. City Contact Information...... 16 I | EXECUTIVE SUMMARY

A. Opportunity Overview NAI Capital Inc has been selected to offer this unique 0.438 Acre High Density Residential/Commercial Development Opportunity in the exclusive City of Santa Monica. Southern is one of the top entertainment/tourism destinations in the world and Santa Monica rests in the middle of it all. The subject property is one of the few development opportunities within this upscale Beach City. With a daily traffic count of over 37,000 motorists per day, the site is within a short walking distance to Santa Monica Beach and Santa Monica Pier.

The Property is zoned General Commercial (“GC”) which is intended to maintain areas for affordable and market rate housing and a broad range of commercial uses that provide necessary daily services such as auto sales and auto repair, convenience retail, hotels, hardware stores and small restaurants. Limited setbacks all around, as well as street/alley frontage on three sides, improve the efficiency of this site for development. Depending on the project, the maximum FAR is 1.25 to 2.0. A detailed list of allowed uses is included in the Zoning Overview section of this package.

The Site is located one parcel away from Ocean Park Boulevard in the middle of Santa Monica’s “Lincoln Boulevard Neighborhood Corridor”; a stretch of Lincoln between the I-10 Freeway and the City limits at Ozone Avenue that has been targeted for improvements by the City. The “Lincoln Neighborhood Corridor Plan” (The “LiNC”) was adopted in April 2017. It is a streetscape plan that provides a range of short- and long-term enhancements to the public right of way along Lincoln Boulevard. Utilizing a strategy that balances tactical urbanism and the desire for “Pop-Up Placemaking”, the plan includes a $5.5M investment in Lincoln Boulevard with new medians and crosswalks, lighting and landscaping. The LiNC improvements will begin in early 2020 with an expected construction time of 18 months from commencement. You may access the City’s LiNC website and a visual representation of the streetscape improvements with the following links: https://www.smgov.net/departments/pcd/plans/streetscapes/lincoln- neighborhood-corridor-plan-(linc)/ https://www.smgov.net/uploadedFiles/Departments/PCD/Plans/Streetscapes/ Envision-Lincoln/01.24.2017_%20LiNC_Schematic_FullCorridor_PC%20 Version.pdf

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B. PROPERTY HIGHLIGHTS & SALE TERMS

PROPERTY Prime 0.438 acre development opportunity PROPERTY FEATURES located in the middle of Santa Monica’s Lincoln Boulevard Neighborhood Corridor. • Excellent High Density Residential/Commercial Development Opportunity • Corner Location with Frontage on Three Sides; Two Streets and a Public Alley • 180’ Street Frontage on Lincoln Boulevard LOCATION Situated 0.6 mile south of the 10 Freeway, 2.6 miles from the 405 Freeway and 0.7 mile from Santa Monica State • Traffic Count of Over 37,000 Motorists Per Day Beach; in the heart of beautiful Santa Monica. • Estimated Ave. HH: 1 Mile-$123,887; 3 Miles-$133,752; 5 Miles-$139,287 • Minimum Building Setbacks • Maximum FAR Range of 1.25 to 2.0 ACCESS AND VISIBILITY Rectangular-shaped, corner location with 180’ of frontage on Lincoln Boulevard, 135’ frontage on Maple Street, and • Zoning Allows High Density Residential & Many Commercial Uses 180’ frontage along the rear public alley; Outstanding • Minutes from 10 & 405 Freeways street circulation. • Walking Distance to Santa Monica Beach & Santa Monica Pier • Nearby to Retail, Schools & Parks LAND USE DESIGNATION General Commercial (“GC”) which is intended to maintain • Excellent Demographics areas for affordable and market rate housing and a broad range of commercial uses. • APN 4284-008-016

CITY INVESTMENT City will invest $5.5M to enhance the public right of way along Lincoln Boulevard.

CURRENT USE Currently leased to a car wash operator. Lease expires on 10/31/2019. Tenant has no options to renew or purchase.

SALE TERMS • Price: $7,355,000 • Due Diligence Period: TBD

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A. PROPERTY OVERVIEW

ADDRESS 2537 Lincoln Boulevard, Santa Monica, CA 90405

SITE SIZE 19,100 SF (approximately)

APN 4284-008-016

ZONING General Commercial (“GC”)

UTILITIES/INFRASTRUCTURE Electric – On site Water - On site Phone - On site Sewer - On site Gas - On site Street – Yes Sidewalk – Yes Curb/gutter – Yes

IMPROVEMENTS: Approximately 4,919 SF operating car wash and auto service bays

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B. AERIAL

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B. AERIAL

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C. LOCATION MAPS

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D. ASSESSOR’S PARCEL MAP

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E. ZONING OVERVIEW The Property is zoned General Commercial (“GC”). This Zoning District is intended to COMMERCIAL USES maintain areas for affordable and market rate housing and a broad range of commercial • Animal Care, Sales and Services (CUP) • Farmers Markets (CUP) uses that provide necessary daily services such as auto sales and auto repair, convenience retail, hotels, hardware stores, and small restaurants while respecting • Pet Day Care Services (MUP) • General Market (CUP) adjacent residential neighborhoods and established neighborhood commercial areas. • Veterinary Services (MUP) • Liquor Stores (CUP) ALLOWED USES • Alternative Fuels and Recharging • Funeral Parlors and Mortuaries (CUP) Facilities (CUP) • Instructional Services (CUP) RESIDENTIAL USES • Automobile Rental (MUP) • Elderly and Long-Term Care • Live-Work (Possible CUP) • Single-Unit Dwelling • Automobile/Vehicle Repair (CUP) • Family Day Care • Bed and Breakfast (MUP) • Duplex • Automobile/Vehicle Washing (CUP) • Residential Care • Hotels and Motels (CUP) • Multiple-Unit Structure • Service Station (MUP) • Residential Care, Senior • Maintenance and Repair Services (CUP) • Senior Citizen Multiple-Unit Residential • Towing and Impound (CUP) • Hospice • Nurseries and Garden Centers (CUP) • Single-Room Occupancy Housing • Banks and Credit Unions (CUP) • Supportive Housing • Office (CUP) • Group Residential (MUP) • Business Services (CUP) • Transitional Housing • Parking, Public or Private (CUP) • Congregate Housing • Bars/Nightclubs/Lounges (CUP) • Personal Services (CUP) • Senior Group Residential • Restaurants • Tattoo or Body Modification Parlor PUBLIC AND SEMI-PUBLIC USES . 2,500 SF & Smaller (MUP) • Adult Day Care • Cultural Facilities (CUP) . 2,501-5,000 SF (MUP) • Retail Sales (CUP) • Child Care and Early Education Facilities • Hospitals and Clinics (CUP) . 5,001 & UP (CUP) • Medical Marijuana Dispensaries (CUP) • Colleges and Trade Schools, Public • Schools, Public or Private (CUP) • Equipment Rental (CUP) • Swap Meets (CUP) or Private • Social Service Centers • Convenience Market (CUP) • Community Assembly (CUP)

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E. ZONING OVERVIEW INDUSTRIAL USES DEVELOPMENT STANDARDS • Artist’s Studio • Commercial Kitchens (CUP Min Parcel Size: 7500 SF • Media Production (CUP) Min Parcel Width: 50’ Min Parcel Depth: 150’ Maximum FAR • Tier 1 Base Standard: 1.25 • Tier 1 Projects Including On-Site Affordable Housing in Compliance with AHPP: 1.5 • Tier 2 With Provision of Community Benefits: 1.75 (2.0 if on-site affordable housing provided) • 100% Affordable Housing Projects: 2.0

Maximum Building • Tier 1 Base Standard: 2/32’ Height (stories/height) • Tier 1 Projects Including On-Site Affordable Housing in Compliance with AHPP: 3/36’ • Tier 2 With Provision of Community Benefits: 3/32’ (3/36’ if on-site affordable housing provided) • Tier 2 With Provision of Community Benefits and 100% Residential Above the Ground Floor: No limit to sto- ries/32’ (36’ if onsite affordable housing provided) • 100% Affordable Housing Projects: No limit to sto- ries/40’

Minimum Setbacks • Rear: 10’ from centerline of public alley • Maple: No setback • Lincoln: No setback

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F. DEMOGRAPHICS

Population 1 Mile 3 Mile 5 Mile Estimated Population (2019) 36,945 226,595 495,463

Projected Population (2024) 37,131 227,926 496,950

Census Population (2010) 35,340 212,028 462,662

Census Population (2000) 34,347 204,859 438,196

Income 1 Mile 3 Mile 5 Mile Estimated Average Household Income (2019) $123,887 $133,752 $139,287

Projected Average Household Income (2024) $150,734 $162,049 $168,566

Census Average Household Income (2010) $92,085 $101,232 $108,033

Census Average Household Income (2000) $66,884 $77,320 $84,366

Households 1 Mile 3 Mile 5 Mile Estimated Households (2019) 19,586 118,506 238,337

Projected Households (2024) 20,153 122,328 245,650

Census Households (2010) 18,237 107,506 216,017

Census Households (2000) 17,724 104,388 206,367

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G. RETAIL TRADE AERIAL

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A. Region The Greater Los Angeles Region is the second largest urban region in the and is second only to the Metropolitan Area in terms of population and economic output; encompassing five counties in , Orange County, Los Angeles County, Riverside County, San Bernardino County and Ventura County. As of the 2010 U.S. Census, the estimated population by 2015 was 18.7 million. The region has continuously urbanized stretching from Ventura County to the southern border of Orange County. The Los Angeles area continues to grow, primarily on the periphery where new, less expensive, undeveloped areas are being sought. In these areas, populations as well as housing prices continue to explode especially in Riverside and San Bernardino Counties. Growth continues not only outside the existing urbanized area but also adjacent to existing development in the central areas. As in virtually all US core cities, there is now vigorous residential development in the downtown area with both new buildings and renovation of former office buildings.

The Region is home to over a quarter of all California residents. Orange County and Los Angeles County are part of the Los Angeles Metropolitan Area, the inner core of the Greater Los Angeles Region. Orange County is mostly suburban with no defined urban center. The establishment of the tourism industry allowed Orange County to become an important economic center. Today Orange County is home to many tourist attractions such as Disneyland, California Adventure, Knott’s Berry Farm, Discovery Science Center and Bower Museum along with extensive beaches and coastlines.

The explosive growth of the Greater Los Angeles Region can be attributed to its climate, the availability of land and many booming industries such as oil, automobile, motion pictures and aerospace which make it easy for employers to attract employees from around the world. Factors affecting continued growth and economic success in the Los Angeles area include:

• The area’s economy is diverse with an emphasis on aerospace, business, services, entertainment, technology, tourism and trade

• The ports of Long Beach and San Pedro provide deep water shipping access

• Five international airports provide air freight and passenger service, plus extensive freeway and rail systems

• The Basin is strategically situated for transacting business in two growing trade areas; the Pacific Rim and Mexico

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B. City of Santa Monica Santa Monica sits perched on the Pacific Ocean at the crossroads of Pacific Coast Santa Monica Facts and Figures Highway and California Interstate Highway 10. Set along 3.5 glistening miles of coastline, • Size: 8.42 square miles the city is bordered by Malibu and Venice and is easily accessible from Los Angeles International Airport. • Population Density: 10,663 people per sq. mile • Median Age: 40.4 years COASTLINE AND BEACHES The blend of Santa Monica’s natural beauty, award winning dining, incomparable hotel • Household Stats: 50,912 total housing units--72% renters, 27% owners collection and famed shopping options, all on one of California’s most beautiful stretches • Est. Average household income: $133,752 of shoreline create a truly unforgettable seaside destination. • Educational Attainment (Age 25+): 65% bachelor’s degree or higher is an iconic destination that draws visitors from around the globe. It is three miles long, covers 245 acres of sand and is managed by the City of Santa Monica in cooperation • Total Businesses: 9,463 with California State Parks. The Santa Monica Pier, a true Southern California icon, was built in 1909. It is home to an and the Santa Monica Aquarium. Tourism in Santa Monica • Total Visitors: 7.3 million (48.2% International; 51.8% Domestic) ACCOMODATIONS Santa Monica is home to some of the most unique, celebrated hotels in all of Southern • Total Annual Visitor Spending: $1.84 billion California. The city’s incomparable hotel collection is made up of 36 hotel properties with • Average Daily Spending: $359 (hotel visitor); $94 (day visitor) more than 3,500 hotel rooms that range from high-style boutique hideaways to world- • Retail Sales Tax Revenue Generated from Visitors: $11.9 million famous oceanfront resorts. • Visitor Hotel Occupancy Tax Revenue: $46.6 million DINING Santa Monica emerged as an international culinary destination in the 1980s and has remained in the top echelon of American dining thanks to its many celebrity chefs and the new generation of culinary innovators who continue to invigorate the city’s dining scene.

SHOPPING Santa Monica’s tempting collection of global retail brands, haute boutiques and unique local offerings has turned the beachside city into an internationally celebrated shopping destination. From Downtown’s and Santa Monica Place, to upscale boutiques along the celebrity-filled Montana Avenue and the fun, shopping in Santa Monica offers something for everyone and truly immerses the visitor in the diverse character of the city.

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C. Local Economy Santa Monica is home to the headquarters of many notable businesses, including , Universal Music Group, Entertainment, Saban Capital Group, , , the RAND Corporation, Beachbody, Fatburger’s and . Atlantic Aviation is at the . National Public Radio member station KCRW is at the campus.

A number of game development studios are based in Santa Monica, making it a major location for the industry. These include: • Activision Blizzard (Includes Activision) • Treyarch • Cloud Imperium Games (Creators of Star Citizen) • Naughty Dog (Creators of Crash Bandicoot (1996–1999), Jak & Daxter and Uncharted franchises) • PUBG Corporation (North American station, developed Miramar map in PUBG) • Riot Games, the creators of League of Legends is just outside the eastern city limit

Recently, Santa Monica has emerged as the center of the Los Angeles region called Silicon Beach, and serves as the home of hundreds of venture capital funded startup companies.

# Employer # of Employees 1 City of Santa Monica 2,528

2 Santa Monica – UCLA Medical Center 2,079

3 Santa Monica College 1,953

4 Saint John’s Health Center 1,676

5 Santa Monica-Malibu Unified School District 1,457

6 RAND Corporation 842

7 Universal Music Group 743

8 Activision Blizzard and Activision 692

9 ET Whitehall (Shutters and Casa del Mar) 568

10 Lionsgate Entertainment 555

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D. City Contact Information

Location Address: 1685 Main St., Santa Monica, CA 90401

Main Phone: (310) 458-8411

City Planning: (310) 458-8341; [email protected]

Housing and Economic Development: (310) 458-8906; [email protected]

Santa Monica Public Works: (310) 458-2223; [email protected]

2537 LINCOLN BOULEVARD | AREA OVERVIEW | 16 FOR SALE | 2537 Lincoln Boulevard, Santa Monica, CA 90405 RARE 0.438 ACRE RESIDENTIAL/COMMERCIAL DEVELOPMENT OPPORTUNITY LOCATED IN THE HEART OF SANTA MONICA’S LINCOLN BLVD NEIGHBORHOOD CORRIDOR

Contact Information David Knowlton, SIOR, CCIM Executive Vice President 949.468.2307 [email protected] Cal DRE License #01990696 Cal DRE Lic #00893394 800.468.2618 • naicapital.com

NAI Capital Offices Headquarters Torrance Ventura County Inland Empire 970 W. 190th St. Dr., Ste. 100 Encino Torrance, CA 90502 Oxnard Ontario 15821 Ventura Blvd., Ste. 320 (310) 532-9080 300 Esplanade Dr., Ste. 1660 800 N. Haven Dr., Ste. 400 Encino, CA 91436 Oxnard, CA 93036 Ontario, CA 91764 (818) 905-2400 Valencia (805) 278-1400 (909) 945-2339 25060 Avenue Stanford., Ste. 165 Los Angeles County Valencia, CA 91355 Westlake Village Temecula Valley (661) 705-3550 2555 Townsgate Rd., Ste. 320 27720 Jefferson Ave., Ste. 330 Downtown LA Westlake Village, CA 91361 Temecula, CA 92590 (805) 446-2400 (951) 491-7590 601 S. Figueroa St., Ste. 3825 West Los Angeles 11835 Olympic Blvd., Ste. 700E Los Angeles, CA 90017 Los Angeles, CA 90064 Victorville (213) 632-7700 Orange County (310) 440-8500 13911 Park Avenue, Ste. 206 Diamond Bar Irvine Victorville, CA 92392 (760) 780-4200 21660 East Copley Ave., Ste. 320 Coachella Valley 1920 Main St., Ste. 100 Los Angeles, CA 90017 Irvine, CA 92614 (213) 632-7700 Palm Desert (949) 854-6600 75-410 Gerald Ford Dr., Ste. 200 Pasadena Palm Desert, CA 92211 San Clemente 225 S. Lake Ave., Ste. 1170 (760) 346-1566 120 ½ S. El Camino Real ., Ste. 210 Pasadena, CA 91101 San Clemente, CA 92672 (626) 564-4800 (310) 806-6100

No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. NAI Capital CA DRE #01990696