BRANDON MICHAELS GROUP

8460BLVD SANTA MONICA

WEST HOLLYWOOD, CA

OFFERING MEMORANDUM PRESENTED BY:

BRANDON MICHAELS Senior Managing Director of Investments Senior Director, National Retail Group Tel: (818) 212-2794 Fax: (818) 212-2710 [email protected] License: CA #01434685 8460 SANT MONICA BLVD www.BrandonMichaelsGroup.com

WEST HOLLYWOOD

FINANCIAL ANALYSIS

COMPARABLES ANALYSIS BRANDON MICHAELS GROUP

OFFICES NATIONWIDE www.marcusmillichap.com 2 3 GLOBAL TOURISM DESTINATION GETTING AROUND

West Hollywood is at the cultural and geographical heart of the region, You can tuck your car away in a hotel garage and stroll to surrounded by must-see hotspots in every direction. great restaurants, cafes, bars, and shopping. Within the city’s 1.8 square miles, you can people-watch on the , sightsee on , • 1.2 million visitors came to West Hollywood last year stop at a great cafe or restaurant on Melrose Ave. and shop at the gorgeous boutiques of the West Hollywood Design • $750 million dollars generated by tourism to our local economy last year District. It’s easy to sightsee in West Hollywood…all on foot!

• 16,599 jobs supported by tourism in West Hollywood

DINING

AFFLUENT NEIGHBORHOOD WHY BUY From the Sunset Strip to , West Hollywood never seems to sleep. There are clubs to be seen, live music to DEMOGRAPHICS IN be heard, and coffee shops to work from. Fuel up with breakfast, brunch, lunch and Median age: 39 ● WEST HOLLYWOOD? dinner at a plethora of celebrity-frequented restaurants so that you can explore the Average household income within a 1 mile radius: $111,075 ● lively neighborhood until the wee hours of the morning. Population within a 5 mile radius: 829,807 ●

DEVELOPMENT IN WEST HOLLYWOOD WEATHER

Southern ’s persistently pleasant weather means Rare opportunity to purchase in a strong rental market. Significant amount of it’s practically always the best time to visit West Hollywood. movement and turnover in the immediate marketplace, creating an opportunity SHOPPING It’s sunny almost 300 days a year and the average high for new construction to enter the market and position the submarket for the Scores of cutting-edge labels can be found in West temperature in many parts of L.A. fluctuates less than 10 future. Upon completion of surrounding developments and with continuing Hollywood, from avant-garde brands to casually degrees through the year. improvements to the immediate area, the West Hollyowood rental market will luxe clothing makers. Melrose Avenue is renowned experience significant growth and offer outstanding returns for long term investors. throughout the world as one of Los Angeles’ most walkable and unique shopping destinations. 4 5 WEHO EXECUTIVE SUMMARY A RARE OPPORTUNITY TO ACQUIRE A SANTA MONICA BOULEVARD JEWEL BOX IN WORLD-RENOWNED WEST HOLLYWOOD, CA

Marcus & Millichap has been selected to exclusively market for sale 8460 Santa Monica Boulevard- a 4,233 square foot, high-profile retail building, located near the corner of Santa Monica Boulevard and La Cienega 8460BLVD Boulevard in the heart of the highly sought-after neighborhood of West Hollywood, CA. Situated on Santa SANTA MONICA Monica Boulevard, one of Southern California’s busiest arterial thoroughfares, the property offers premiere exposure with 40 Feet of frontage along Santa Monica Boulevard on a bustling corner lot.

WEST HOLLYWOOD, CA West Hollywood is at the cultural and geographical heart of the Los Angeles region, surrounded by must-see hotspots in every direction. Commonly known as WeHo, the neighborhood is among the top destinations in the world, and this irreplaceable location benefits from high daily traffic counts north of 70,000 cars per day at the corner of Santa Monica Boulevard and . 8460 Santa Monica is located in the heart of one of the most famously known locales for celebrities, wealthy residents, and tourists alike. There may be no greater concentration of the young, hip, and beautiful than in the boutiques and clubs of this famous neighborhood.

8460 Santa Monica Boulevard offers the unique opportunity to acquire one of the more impressive storefront retail locations in Southern California. 8460 Santa Monica Boulevard is a 1 story, 4,233 square foot storefront retail building with 3 free surface spaces located at the rear of the property. The subject property is leased to The Residency Experience, a full service national public relations agency on a five year corporate guaranteed NNN Lease. This opportunity offers a stable and secure income stream in one of Los Angeles' most high-profile locations.

There is tremendous potential as current rent in the area has created an affluent community surrounding West Hollywood, making this an ideal time to purchase property along Santa Monica Boulevard. Upon the completion of the surrounding developments and continuing improvements to the immediate area, the rental market will experience significant growth and offer outstanding long-term returns for investors. There has been a significant amount of movement and turnover within the marketplace, creating an opportunity for new concepts to enter the market and position this submarket for the future. Two years ago, plans were announced to construct a mixed-use development incorporating Barney's Beanery across the 1.8 4,448 92 street from 8460 Santa Monica Boulevard. The new proposal - calls for the construction of a mid-rise building that would contain an 88-room hotel and 45 apartments - including 11 priced below market rate. Plans also call for three restaurants - including Barney's - and an 80-seat live music venue square miles of walkable hotspots, 4,448 Businesses within a 8460 Santa Monica Boulevard and recording studio that will be located underground and on the south side of the property to avoid disturbing neighbors. restaurants, nightlife, and shopping in 1 square mile of 8460 scores an 92/100 on Walkscore.com West Hollywood Santa Monica Boulevard 6 7 HOLLYWOOD HILLS

BEVERLY HILLS WESTWOOD

8460BLVD SANTA MONICA

WEST HOLLYWOOD, CA PROPOSED MIXED-USE DEVELOPMENT 88 ROOM HOTEL AND 45 APARTMENT UNITS

8 9 PROPERTY OVERVIEW

8460 Santa Monica Boulevard Property Address West Hollywood, CA 90069

Price $4,850,000

CAP Rate 5.47%

Price/SF $1,145 CORNER

Building SF 4,233

Land SF 4,028

Property Type Storefront Retail

Year Built 1938 | Renovated 1965

APN's 5529-007-033

Zoning WDC2A

Type of Ownership Fee Simple

Tenant The Residency Experience SIDE Lease Type NNN

Guarantee Corporate

Landlord Liability None

3 free surface spaces located at Parking the rear of the property

10 11 REAR INVESTMENT HIGHLIGHTS

Located in West Hollywood, The Residency is dedicated to assist emerging and IRREPLACEABLE SANTA MONICA BOULEVARD LOCATION - Located on a established designers in taking their brand to the next level. At The Residency Los highly walkable stretch of Santa Monica Boulevard in West Hollywood. Santa Monica Angeles, we offer services tailored to fit the needs of each designer. Boulevard continues to be among the busiest east-west arterial thoroughfares in all of Los Angeles. Santa Monica Boulevard extends from East Hollywood, all the way FULL SERVICE PUBLIC RELATIONS to the Pacific Ocean. The location boasts designer labels, popular restaurants, and LA CIENEGA BLVD The Residency is a full service public relations agency that specializes in celebrity boutiques and is famously known for being a preferred destination of celebrities, and editorial outreach. Strategies are specially crafted for each client to ensure wealthy residents, and tourists alike maximum visibility and brand awareness. We collaborate daily with celebrity LEASE ABSTRACT stylists, editors, costume designers and social media influencers. Services include Tenant The Residency Experience WALKABILITY - 8460 Santa Monica Boulevard has a score of 92/100 for walkability. celebrity placement, print and digital editorial placement, and generating social Lease Commencement December 5, 2017 Iconic retailers and trendy/hip boutiques and restaurants populate Santa Monica media content. Lease Expiration July 17, 2023 Boulevard and it is a popular haven for the rich and famous CUSTOM DESIGN AGENCY Option 1-5 Year @ FMV ICONIC WEST HOLLYWOOD SUBMARKET - Major hotspots and destinations The Residency additionally serves as a custom design agency, providing up-and- Current Rent $261,155/year $22,096/month in the City of West Hollywood, such as the Sunset Strip, Santa Monica Boulevard, coming designers with the opportunity to create custom pieces for top celebrity 8460BLVD Melrose Boulevard, and Robertson Boulevard. In the immediate corridor are tenants SANTA MONICA talent. This could be for a film, music video, commercial, red carpet or other RENT SCHEDULE*: special events. such as, Walgreens, La Boheme, Sunset Shop, Gardens of Taxco, IHOP, and numerous WEST HOLLYWOOD, CA 12/5/2017 - 2/7/2019 $152,388/year $12,699/month day spas EVENT MANAGEMENT & TRUNK SHOWS Current 2/18/2019 - 6/30/2019 $265,155/year $22,096/month

NNN CORPORATE GUARANTEED LEASE - Rented to The Residency Experience The Residency can assist you in organizing trunk shows, pop up shops, and 7/12/2019 - 11/30/2019 (abated) $265,155/year $22,096/month on a 5 year NNN Lease with minimal landlord responsibilities other unique events for your brand. In addition, our showroom located in the 12/1/2019 - 12/31/2019 (partially abated) $265,155/year $22,096/month heart of Hollywood can be used to host fashion exhibitions and other in-person 1/1/2020 - 2/17/2020 $265,155/year $22,096/month HIGH DAILY TRAFFIC COUNTS - Ideally located on the corner of Santa Monica experiences, thus helping you showcase your brand to important influencers in Boulevard and Alfred Street, just 1 block east of the signalized corner of Santa Monica the entertainment community. 2/18/2020 - 2/17/2021 $265,155/year $22,096/month Boulevard and La Cienega Boulevard, which experiences over 70,000 vehicles per 2/18/2021 - 2/17/2022 $272,775/year $22,731/month CELEBRITY ENDORSEMENTS day 2/18/2022 - 2/17/2023 $280,902/year $23,409/month At the Residency, we’ve cultivated coveted relationships with the industry’s top TOTAL $1,3491,142 AREA HOSPITAL- The property is located 1.2 miles away from Cedars-Sinai stylists, editors, and influencers to whom we can introduce you. We will work Medical Center strategically to find and negotiate the most relevant endorsements for your brand Average NOI/Year $269,828/year SANTA MONICA BOULEVARD helping elevate its status and gain exposure among the Hollywood elite. *Seller will credit at close of escrow for any rent abatements 12 13 PROPERTY SUMMARY

8460BLVD SANTA MONICA LOCATION COMPANY SF % $ $/SF EXPIRATION OPTION WEST HOLLYWOOD, CA 8460 Santa Monica Boulevard, West Hollywood, CA 90069 The Residency 1-5 year 4,233 100% $22,096 $5.22 7/1/2023 Experience at FMV SITE The subject property is located on the corner of Santa RENT ROLL Monica Boulevard and Alfred Street

SQUARE FOOTAGES The building square footage is 4,233 square feet, located on a lot size of 4,028 square feet

FRONTAGE AND ACCESS 40 feet of frontage on Santa Monica Boulevard and 100 feet along Alfred Street. Access is from Santa Monica Boulevard

ZONING 8460 Santa Monica Boulevard is located within zoning of WDC2A

YEAR BUILT The subject property was built in 1938 and renovated in 1965

TRAFFIC COUNTS Intersection of Santa Monica Blvd and La Cienega Blvd: 71,871 vehicles per day

PARKING The subject property consists of 3 free spaces located at the rear of the property. PLATPLAT MAP MAP 14 15 WEST HOLLYWOOD

16 17 WEST HOLLYWOOD TOP ATTRACTIONS

The blend of West Hollywood's award winning shopping, dining, nightlife, SUNSET STRIP and incomparable hotel collection, all in one of California’s most iconic neighborhoods, creates a truly unforgettable destination. From the heights of swank hotel rooftops like the Mondrian’s SkyBar and the Tower Bar at Sunset Tower Hotel, to the glam-grunge of rock LOCATION clubs like The Viper Room and , there’s a setting to West Hollywood is bounded by the city of Beverly Hills on the west, and on suit your style and mood. In addition to clubs with music ranging from other sides by neighborhoods of the city of Los Angeles: Hollywood Hills indie singer/songwriters to major headliners, there are iconic comedy on the north, Hollywood on the east, the Fairfax District on the southeast, clubs such as The Laugh Factory and the Comedy Store. The Sunset and Beverly Grove on the southwest. Strip isn’t just . Spend the afternoon shopping at Sunset CLIMATE Plaza, which contains more than 20 stores, like Armani Exchange and H&M. Book lovers, don’t miss the iconic Book Soup, L.A.’s largest West Hollywood has a Subtropical-semi-arid climate with year-round warm independent book store, with floor-to-ceiling shelves that contain weather. The record high temperature of 111 °F was recorded September 26, 1963, while the record low of 24 °F was recorded on January 4, 1949. Snow more than 60,000 titles, many of which are limited edition. The store is rare in West Hollywood, with the last accumulation occurring in 1949. hosts frequent author readings, so check its calendar to meet your Rainfall is sparse (only 13 inches annually), and falls mainly during winter favorite novelist or hear from up-and-comers. months. MELROSE AVENUE ACCOMODATIONS Melrose Avenue is renowned throughout the world as one of West Hollywood options include world-renowned hotels such as the Chateau Marmont, SLS Hotel, Sunset Marquis, Sunset Tower Hotel, Sofitel Los Angeles’ most walkable and unique shopping, dining and LA at Beverly Hills and Mondrian Los Angeles. entertainment destinations. Downtown Melrose encompasses the 22 blocks along Melrose Avenue that stretch from Fairfax to Highland. DINING More than 300 alternative and independent stores offer a wide array From the Sunset Strip to Melrose Avenue, West Hollywood never seems of merchandise found nowhere else in the city. to sleep. There are clubs to be seen, live music to be heard, and coffee shops to work from. Fuel up with breakfast, brunch, lunch and dinner at ROBERTSON BOULEVARD a plethora of celebrity-frequented restaurants so that you can explore the lively neighborhood until the wee hours of the morning. Robertson Boulevard has become a haven for celebrities and paparazzi. This is partially due to a large influx of unique boutiques SHOPPING and designer clothing & jewelry stores such as Agnes B, Curve, Lisa Melrose Avenue is one of L.A.’s most famous streets, featuring a myriad Kline, Kitson Boutique, Williams Sonoma, Armani Exchange, Michael of shopping. Melrose runs north of Beverly Boulevard and south of Santa Kors, Ralph Lauren, Ted Baker, M·A·C, Chanel, Gypsy05, Intermix, Tory Monica Boulevard. Along its "west end," Melrose Avenue is all about strolling Burch, Max Azria, Beach Bunny Swimwear, and Erica Courtney, which and shopping, so bring dough and plenty of it. The street begins at Santa is a mecca for many celebrity shoppers. In addition, several popular Monica Boulevard where the cities of Beverly Hills and West Hollywood celebrity-infused eateries are located on Robertson Boulevard, such meet, otherwise known as the intersection of posh and funky. as The Ivy. 18 19 WEST HOLLYWOOD DEMOGRAPHICS

36,698 Total Population of Santa Monica. The median age is 39. $111,075 606,269 $79,410 Average HH income within 1-m radius Daytime Population within 5-m radius Median HH income within 1-m radius 58% 42% EDUCATION MALE FEMALE

101,146 263,690 829,807 Owner Occupied Households Renter Occupied Households Population within a 5-m radius 14.7% 24.6% 27.6% 13.9% within 5-m radius within 5-m radius High School Associates Degree Bachelor’s Degree Grad Degree

BUSINESSES

West Hollywood is home to innovative industries and a magnet for highly skilled professionals. Companies ranging from retail, tourism and nightlife, restaurants, entertainment and media, as well as arts and design are drawn to West Hollywood’s creative workforce as well as its high quality of life.

TOP EMPLOYERS • Metro • Sunset Marquis • Mondrian Hotel • IAC/CityGrid Media • London West Hollywood • Andaz West Hollywood • City of West Hollywood • Standard Hotel • Saddle Ranch Chop House

20 21 BRANDON MICHAELS GROUP

8460BLVD SANTA MONICA BRANDON MICHAELS Senior Managing Director of Investments WEST HOLLYWOOD, CA Senior Director, National Retail Group Tel: (818) 212-2794 Fax: (818) 212-2710 [email protected] License: CA #01434685 www.BrandonMichaelsGroup.com