FOR SALE ROSECRANS AVENUE 312 MANHATTAN BEACH
*NEW PRICE* COASTAL LANDMARK PROPERTY J. Patrick Sheekey Executive Vice President D. 310.966.4341 [email protected] DRE# 01290968
Catherine C. Wachtfogel Associate D. 310.966.4358 [email protected] DRE# 01889542
WESTMAC Commercial Brokerage Company 1515 S. Sepulveda Boulevard, Los Angeles, CA 90025 310.478-7700 | www.westmac.com Company DRE# 01096973
EL PORTO BUILDING | 312 ROSECRANS AVENUE 2 FOR SALE ROSECRANS AVENUE 312 MANHATTAN BEACH
© 2019 WESTMAC Commercial Brokerage Company. All Rights Reserved. WESTMAC Commercial Brokerage fully supports the principles of the Equal Opportunity Act. WESTMAC Commercial Brokerage Company and the WESTMAC Commercial Brokerage Company logo are registered service marks owned by WESTMAC Commercial Brokerage Company and may not be reproduced by any means or in any form whatsoever without written permission. EL PORTO BUILDING | 312 ROSECRANS AVENUE 4 EXECUTIVE SUMMARY A ONE-OF-A-KIND COASTAL LANDMARK BEING OFFERED FOR THE FIRST TIME ON THE MARKET
WESTMAC Commercial Brokerage Company is pleased to present the rare opportunity to acquire 312 Rosecrans Avenue, a sizable landmark mixed-use in the coastal enclave of Manhattan Beach. This future value-add investment is comprised of a two-story +/- 10,661-square foot building one block from the beach. It’s situated on +/- 7,011-square feet of land at the southeast corner of the signalized intersection of Highland Avenue and Rosecrans Avenue.
Built in 1953, the building is architecturally well-designed and offers ocean views, great visibility and prime beach side locale. Current occupancy includes 8 commercial tenants, 7 residential tenants and 2 cell towers. There is a public parking structure directly across the street from the subject property, and plentiful metered street parking surrounding the site.
The property is located in the upscale beach city of Manhattan Beach, in the North Manhattan Beach District along popular Highland Avenue. North Manhattan Beach business district is located near the intersection of Rosecrans and Highland and has many excellent restaurants and shops including Pancho’s Mexican Restaurant, Baja Sharkeez, and Fishbar. The district is defined as covering 32nd Street to 45th Street and consists of over 80 businesses. Manhattan Beach has been a preferred resort destination for more than a century and one of the most desirable areas to live in the country.
312 Rosecrans Avenue’s distinctive architectural design, oceans views, highly-visible and coveted location, and unique tenant mix creates a trophy investment opportunity in one of the strongest yet most supply constrained markets in the country. Furthermore, the property offers future upside by stabilizing the below market rents.
EL PORTO BUILDING | 312 ROSECRANS AVENUE 5 EL PORTO BUILDING | 312 ROSECRANS AVENUE 6 PROPERTY INFORMATION
ADDRESS ZONING 312 Rosecrans Avenue, CNE - North End Commercial Manhattan Beach, CA 90266 (check with city for uses)
APN FAR 4175-016-027 1.5
HEIGHT ALLOWED BUILDING SIZE Approximately 10,661-square feet 30 feet height limit
PROPERTY TYPE LAND SIZE Approximately 7,011-square feet Mixed-Use
PARKING TENANT MIX Public parking structure across the street 6 retail, 2 offices, 7 residential, 2 cell towers & abundant street metered parking
OCCUPANCY YR BUILT / RENOVATED 100% 1953 / 2000
SALES PRICE NUMBER OF STORIES $11,250,000 2
EL PORTO BUILDING | 312 ROSECRANS AVENUE 7 N ROSECRANS AVENUE
HIGHLAND AVENUE
EL PORTO BUILDING | 312 ROSECRANS AVENUE 8 EL PORTO BUILDING | 312 ROSECRANS AVENUE 9 PUBLIC PARKING STRUCTURE HIGHLAND AVENUE RENT ROLL SUMMARY RENT ROLL & EXPENSE ANALYSIS AVAILABLE UPON REQUEST
All tenants are either month to month or expire in the near term. The only tenants that have options to renew are the two cell tower tenants. All retail tenants are on NNN leases. Office and Residential tenants are on Modified Gross Leases. Modified Gross tenants pay all utilities except water.
RENT ROLL INCOME RENT MONTHLY RENT ANNUAL NOI
Current (as of 3/2019) $41,472 $497,664 $304,709*
Projected $51,541 $618,489 $425,534* *includes expenses such as existing management fees and projected property taxes
EL PORTO BUILDING | 312 ROSECRANS AVENUE 10 INCOME INCOME IN PLACE PROJECTED
NOI NOI $304,709* $425,534*
CAP RATE CAP RATE 2.6% (at asking price) 3.7% at $11,500,000 3.9% at $11,000,000 4.0% at $10,500,000 VACANCY 0% VACANCY *includes expenses such as existing management fees and 0% projected property taxes *includes expenses such as existing management fees and projected property taxes
EL PORTO BUILDING | 312 ROSECRANS AVENUE 11 EL PORTO BUILDING | 312 ROSECRANS AVENUE 12 PROPERTY HIGHLIGHTS
INVESTMENT OPPORTUNITY Savvy investors will see the potential in this landmark asset. L.A.’s South Bay has long been a strong real estate and investment market. There are only so many properties near the beach, and the demand is generally high. The market tends to appreciate more, and is less likely to drop in a down market.
STRONG MARKET DEMOGRAPHICS Due to increasing demand from healthcare, biotech, e-commerce, & life science industries, and the close proximity to LAX and the Port of Los Angeles, there’s a driving boom for real estate in the South Bay. In addition, new developments like the stadium in Inglewood, the expansion of LAX and a resurgence of aerospace jobs coming back into the South Bay has helped fuel the boom.
EXCELLENT VISIBILITY The building is on a signalized corner lot with excellent signage visibility. Rosecrans Avenue and Highland Avenue is the gateway to Manhattan Beach. Travelers use it as it’s a short walk to beach, lined with assorted businesses and eateries, and a 5-minute drive (approx. 1.2 miles) to downtown Manhattan Beach shops and restaurants.
LANDMARK BUILDING Built in 1953 and renovated in 2000, the building is uniquely designed with Terra cotta roofing and a distinct tower showcasing a clock face and the “El Porto Building” name on both sides. Due to its height and the immediate recognizability of its architecture, the El Porto Building possess a strong identity, making it a true landmark for the area.
AMENITY RICH AREA The property is located in the North Manhattan Beach Business District along popular Highland Avenue. Many dining and shopping options are available and has over 80 businesses catering to patrons. Neighboring tenants include: El Tarasco, Hair West, Bikram Yoga, Baja Sharkeez and Panchos Restaurant.
BEACH CITY LOCATION The property is located one block from the beach giving panoramic ocean views from the building’s upper units.. The city of Manhattan Beach itself is popular with locals and tourists, and is a preferred resort destination.
EL PORTO BUILDING | 312 ROSECRANS AVENUE 13 NORTHERN MANHATTAN BEACH BUSINESS DISTRICT
ROSECRANS AVENUE 312 MANHATTAN BEACH HIGHLAND AVENUE
ROSECRANS AVENUE
EL PORTO BUILDING | 312 ROSECRANS AVENUE 14 REDONDO BEACH HERMOSA BEACH MANHATTAN BEACH PIER DOWNTOWN MANHATTAN BEACH
THE STRAND MANHATTAN BEACH
EL PORTO BEACH HIGHLAND AVENUE
MANHATTAN AVENUE OCEAN DRIVE OCEAN
N EL PORTO BUILDING | 312 ROSECRANS AVENUE 15 NORTHERN MANHATTAN BUSINESS DISTRICT is located near the intersection of Rosecrans and Highland and has many EL PORTO is a beach community that is part of excellent restaurants and shops including MANHATTAN BEACH, a city in the South Bay area. Pancho’s Mexican Restaurant, Sharkeez, and Fishbar. The district is defined as covering 32nd Street to 45th Street and consists of over 312 ROSECRANS AVENUE 80 businesses area.
EL PORTO BEACH
EL PORTO BUILDING | 312 ROSECRANS AVENUE 16 El Porto Beach
ROSECRANS AVENUE 312 MANHATTAN BEACH
NN
17 MARKET SUMMARY SOUTH BAY
The South Bay is an industrial hub near the Ports of LA and Long Beach and LAX. It is a region of the Los Angeles metropolitan area, located in the southwest corner of Los Angeles County. The name stems from its geographic location stretching along the southern shore of Santa Monica Bay. The South Bay contains fifteen cities plus portions of the City of Los Angeles and unincorporated portions of the county. The area is bounded by the Pacific Ocean on the south and west and generally by the City of Los Angeles on the north and east.
• The South Bay is the epicenter of Southern California’s thriving Industrial, Shipping & Exporting & manufacturing industry.
• The area is home to several major Class A office campuses occupied by some of the world’s leading aerospace and research & manufacturing companies. Area employers include Space X, Tesla, Boeing, Northrop Grumman, US Air Force, Aerospace Corporation, Raytheon Space and Airborne Systems, and many others.
• The beach cities of Manhattan Beach and Hermosa Beach is home to a large population of high-income earning residence. The median home value in Manhattan Beach is almost $2.5MM. In Hermosa Beach, the median home value is $1.7MM.
• Millennials are flocking to area for its work/live/play environment.
• Area gives immediate access to Los Angeles International Airport (LAX), Hawthorne Airport. Port of Los Angeles and Port of Long Beach.
EL PORTO BUILDING | 312 ROSECRANS AVENUE 18 EL PORTO BUILDING | 312 ROSECRANS AVENUE 19 MANHATTAN BEACH
Manhattan Beach is one of the three Beach Cities that make up the South Bay. Situated conveniently close to LAX, Manhattan Beach is a popular attraction for beach lovers thanks to the ultra-smooth sand,volleyball nets and picture perfect water that offers breathtaking views and just the right amount of waves to make it a hot spot for surfing.
Downtown Manhattan Beach is the bustling center of the city, loaded with high-end boutiques, retailers, and many popular casual and fine-dining restaurants.
The Manhattan Beach Pier is a 928-foot pier that houses the free Roundhouse Aquarium located at the end of Manhattan Beach Boulevard. The South Bay Bicycle Trail and a pedestrian only walkway run through the beach providing users with an intimate glimpse at some of L.A.’s most expensive beach side homes, parallel views of the Pacific Ocean, and a scenic view of the Palos Verdes Peninsula to the South. The path will take you all the way to Hermosa Beach, which is just a couple of miles south and makes for a good scenic route.
In 2017, Property Shark ranked the City of Manhattan Beach 90266 zip code as the 32nd most expensive zip code in the United States. Residential prices in Manhattan Beach are among the highest in the state of California. Land values on the Manhattan Beach “Strand” are routinely around $10 million for a 3,000 square foot piece of land.
EL PORTO BUILDING | 312 ROSECRANS AVENUE 20 EL PORTO BUILDING | 312 ROSECRANS AVENUE 21 DEMOGRAPHICS
POPULATION 1-MILE 3-MILE 5-MILE
Population (Current) 11,182 81,109 357,772
Population (5 Yr. Forecast) 11,147 82,045 360,915
HOUSEHOLDS 1-MILE 3-MILE 5-MILE
Households (Current) 4,937 33,323 131,797
Med. Household Income $146,844 $126,593 $83,039
Avg. Household Income $177,303 $157,776 $114,269
BUSINESSES 1-MILE 3-MILE 5-MILE
Total Establishments 215 5,865 15,076
Total Employees 1,378 76,548 160,684
EL PORTO BUILDING | 312 ROSECRANS AVENUE 22 DISCLAIMER
This offering has been prepared solely for informational purposes. It is designed to assist a potential investor in determining whether it wishes to proceed with an in-depth investigation of the subject property. While the information contained herein is from sources deemed reliable, it has not been independently verified by WESTMAC Commercial Brokerage Company or by the Seller.
This document is provided subject to errors, omissions and changes in the information and is subject to modification or withdrawal. The contents herein are confidential and are not to be reproduced without the express written consent.
The information in this Memorandum has been obtained from sources Broker believes to be reliable; however, Broker has not conducted sufficient investigation to make any warranty or representation whatsoever including but not limited to the accuracy or completeness of the information, veracity or accuracy of the information, condition of the Property or its compliance or lack of compliance with applicable governmental requirements, developability, suitability or financial performance of the Property, income or expenses for the Property, the size and square footage of the Property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State or Federal regulations, the physical condition of the improvements thereon, or the financial condition or business Property and does not purport to be an all – inclusive representation regarding the Property or to contain all or part of the information which prospective investors may require to evaluate the purchase of the Property. Additional information and an opportunity to investigate the Property will be made available to interested and qualified prospective purchasers. All information is based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of Broker, therefore, all information is subject to material variation. The information contained herein is not a substitute for a thorough due diligence investigation. Interested parties are expected to review all information of whatever nature independently and not rely on the contents of this Memorandum in any manner.
The Property owner (“Owner”) expressly reserves the right, at its sole discretion, to reject any or all offers to purchase the Property, and/or to terminate discussions at any time with or without notice. The Owner shall have no legal commitment or obligation unless and until written agreement(s) have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.
Prospective buyers shall be responsible for their costs and expenses of investigating the Property and all other expenses, professional or otherwise, incurred by them.
EL PORTO BUILDING | 312 ROSECRANS AVENUE 23 FOR SALE ROSECRANS AVENUE 312 MANHATTAN BEACH
J. Patrick Sheekey Executive Vice President D. 310.966.4341 [email protected] DRE# 01290968
Catherine C. Wachtfogel Associate D. 310.966.4358 [email protected] DRE# 01889542