BRANDON MICHAELS GROUP
8600 West Pico Boulevard . Los Angeles, CA 90035 INVESTMENT ADVISORS
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 www. BrandonMichaelsGroup .com
BRANDON MICHAELS GROUP SOUTHERN CALIFORNIA'S PREMIER SALES TEAM W. PICO BLVD 16830 Ventura Blvd. Suite 100, Encino, CA 91436 www.marcusmillichap.com
2 PROPERTY OVERVIEW
FINANCIALS
COMPARABLES
S. HOLT AVE
AREA OVERVIEW
3 4 WEST PICO BLVD Century City shopping center, City Century towers, business andFox Studios. on the Westside. to are the economy theImportant Westfield skyscrapers andits centers, formemployment adistinctive skyline is the metropolitanone of area’s City Century prominent most Westside. Downtown of district Angeles’ Outside inLos Angeles, Los andbusiness ha) neighborhood (71.2 is a176-acre City Century Average Household Income within a1-mile radius: $106,883 Population within a5-mile radius: 974,970 ADJACENT TO CENTURY CITY AFFLUENT NEIGHBORHOOD immediate marketplace, creating an opportunity for new concepts forconcepts new immediate marketplace, creating anopportunity Extremely rare opportunity to purchase rare inatransitioning opportunity rental Extremely to enter the the market submarket andposition for the future. market. Significant amount movement of andturnover Significant market. inthe Demographics: Median Age:36 SIGNIFICANT OPPORTUNITYSIGNIFICANT WEST PICO WEST PICO WHY BUYON BLVD PICO BOULEVARD
Pico Boulevard is a major Los Angeles street that runs from the Pacific Ocean at WHY BUY ON Appian Way in Santa Monica to Central Avenue in Downtown Los Angeles, California, USA. Pico runs parallel south of Olympic Boulevard and is one of the southernmost major streets leading into Downtown Los Angeles, running WEST PICO north of Venice Boulevard and south of Olympic Boulevard. BLVD
WEST PICO BLVD COMMUNITY DESIGN
Pico Boulevard should present a distinct identity as the neighborhood’s main commercial corridor, and that development visually provides a sense of place. It has the potential of becoming an active, vibrant and vital community serving, pedestrian-oriented commercial area.
5 Pico-Robertson Century City Century City Beverly Hills
A rare opportunity to acquire a West Los Angeles jewel box in the highly desirable Pico-Robertson sub-market.
Marcus & Millichap has been selected to exclusively market for sale 8600 West Pico Boulevard, a 14,176 square foot retail building situated on 11,175 square feet of land zoned C4 in Los Angeles, CA. 8600 West Pico Boulevard is well located in the Pico Robertson submarket of Los Angeles, adjacent to Beverly Hills and Culver City just west of the signalized corner of Pico Boulevard and La Cienega Boulevard. This prime West Los Angeles location benefits from a dense and affluent surrounding demographic.
8600 West Pico Boulevard consists of a 14,176 square-foot commercial building which was previously occupied by Blueprint Furniture, who successfully operated as a modern and contemporary furniture store in the area since 1989. The subject property benefits from excellent frontage with 100 linear feet of frontage along Pico Boulevard and unique signage which creates ideal visibility. Daily traffic counts exceed 45,000 vehicles per day, further adding to the uniqueness of the subject property. The building’s glass façade lining Pico Boulevard creates a strong and memorable impression and exposes the interior of the building to the outside natural light.
The subject property will be delivered vacant at the close of escrow, making this an ideal opportunity for an Owner-User Buyer looking for a prime westside location, or an investor or developer looking to acquire an excellent location with significant growth potential. 8600 West Pico Boulevard is situated on 11,175 square feet of land zoned C4-1-O, within a tier 3 Transit Oriented Community (TOC). There is significant development in the immediate area, with thousands of new residential units coming online as well as high end commercial and office space. The growth in the immediate area creates significant upside for this prime location.
Located just minutes from Beverly Hills and Century City, 8600 West Pico Boulevard is ideally located in a densely populated, affluent West Los Angeles sub-market with the average household income exceeding $120,000 within a one-mile radius and over 1,000,000 people within a five mile radius. Century City is the most prominent business district in Los Angeles outside of Downtown, and Beverly Hills is an international icon for its concentration of luxury and high-end shops and restaurants. Immediate national and regional retailers surrounding the subject property include Ralphs, Walgreens, CVS, Office Depot, The Coffee Bean, Beverly Hills Marriott, Mr. C Beverly Hills, Factor's Famous Deli, Shiloh’s Steakhouse, and many more.
6 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS
MID-WILSHIRE KOREATOWN
8590 Pico Boulevard Brand New 7-Story, 36-Unit Apartment Building
S. HOLT AVE
W. PICO BLVD
8 IRREPLACEABLE WEST LOS ANGELES BEVERLY HILLS/CENTURY CITY LOCATION Located less than two miles from world famous Rodeo Drive of Beverly Hills and Century City, one of the most prominent business districts in Los Angeles. WALKING DISTANCE TO A MULTITUDE OF AMENITIES Neighboring tenants include high-end restaurants such as Trattoria $106,883 Average Household Income Natalie and Shiloh’s Steakhouse, the luxurious Mr. C Beverly Hills Within 1-mile Radius DOWNTOWN LA Hotel, Ralphs, Walgreens, CVS, and Office Depot. AFFLUENT NEIGHBORHOOD The average household income is $125,572 within a one-mile radius. HIGHLY TRAFFICKED STREET Pico Boulevard is one of the main thoroughfares that runs from the Pacific Ocean to Downtown Los Angeles. Hotels (both luxury and economy) line the blocks, as do a rich variety of restaurants and boutiques. Over 45,000 vehicles pass the subject property per day. 154,852 OWNER-USER OPPORTUNITY Households Within 3-mile Radius The building will be delivered vacant, creating a unique opportunity for an Owner-User Buyer to occupy a portion or the entire building. UNIQUE SIGNAGE AND EXCELLENT VISIBILITY Large signage and 100 feet of frontage on heavily trafficked West Pico Boulevard. SIGNIFICANT DEVELOPMENT IN THE IMMEDIATE AREA Thousands of new residential units and high-end commercial space coming online in the immediate and surrounding areas, creating 953,780 significant growth potential. Population Within 5-mile Radius CORNER LOCATION ZONED C4 11,175 square feet of land well positioned within a Tier 3 Transit Oriented Community. 9 PROPERTY INFORMATION
8600 West Pico Boulevard ADDRESS Los Angeles, CA 90035
PRICE $6,495,000
PRO FORMA CAP RATE 8.09% CULVER CITY
PRICE/SF $458
PRICE/SF (LAND) $581
BUILDING SF 14,176
GROUND FLOOR SF 10,308
SECOND STORY SF 3,868
LAND SF 11,175
ZONING LAC4
TOC Tier 3
APN NUMBER 4303-019-006
YEAR BUILT 1937/1950
TYPE OF OWNERSHIP Fee Simple
Interest Offered: 100% fee simple interest in a 14,176 SF retail property located at 8600 West Pico Boulevard, Los Angeles, CA 90035.
Terms of the Sale: Property is being offered on a free and clear basis.
Property Tours: Prospective purchasers are encouraged to visit the site prior to submitting offers. All property tours must be
SUMMARY OF TERMS SUMMARY coordinated through the listing broker.
10 CENTURY CITY CULVER CITY BEVERLYWOOD
8590 Pico Boulevard Brand New 7-Story, 36-Unit Apartment Building
S. HOLT AVE
W. PICO BLVD
PROPERTY HIGHLIGHTS
11 PROPERTY DETAILS
CENTURY CITY BEVERLY HILLS
8590 Pico Boulevard Seven-story with 36 Units Brand New Apartments
W. PICO BLVD S. HOLT AVE
12 LOCATION
8600 West Pico Boulevard Los Angeles, CA 90035 SITE
The subject property is located on the southwest corner of West WEST HOLLYWOOD Pico Boulevard and South Holt Avenue. 47,608 SQUARE FOOTAGES Traffic Volume Counts of 47,608 The total building SF is 14,176 SF. The total lot size is 11,175 SF. Along West Pico Boulevard YEAR BUILT
The property was built in 1937. CROSS STREETS
The cross streets are West Pico Boulevard (East/West) and South Holt Avenue (North/South). TRAFFIC COUNTS
The traffic volumes along West Pico Boulevard are 47,608 vehicles 62,663 per day. 68,096 Businesses in a 5-mile Radius FRONTAGE
100 Feet on West Pico Boulevard; 114 Feet on South Holt Ave. PARKING
9 Surface parking spaces at the rear of the property. ZONING S. HOLT AVE The zoning is LAC4. $10,358,154 APN NUMBER $10,358,154 of Consumer The APN number is 4303-019-006. Spending in a 5-mile Radius TRANSIT ORIENTED COMMUNITY (TOC)
The TOC is Tier 3. 13 FINANCIALS
RENT ROLL
TENANT SF BLDG % PRO FORMA RENT PRO FORMA RENT/SF LEASE TYPE
First Floor 10,308 73% $36,078.00 $3.50 NNN
Second Floor 3868 27% $7,736.00 $2.00 NNN
TOTAL 14,176 100% $43,814.00 $3.09 -
PRO FORMA OPERATING DATA
INCOME AND EXPENSE PRO FORMA OPERATING EXPENSES PER YEAR PER SF
Scheduled Lease Income $525,768 Taxes @1.25% $77,940 $5.50
NNN Charges $129,307 Insurance $5,529 $0.39
Effective Gross Income $655,075 Utilities $6,379 $0.45
Expenses $129,307 Trash $5,670 $0.40
Net Operating Income $525,768 Repairs & Maintenance $9,923 $0.70
Management $21,031 $1.48
Reserves $2,835 $0.20
TOTAL $129,307 $9.12/$0.76
14 PRICING
8600 W. Pico Boulevard Address Los Angeles, CA 90035
Pricing: $6,495,000
Pro Forma CAP Rate: 8.09%
Price/SF: $458
Price/SF (Land): $581
Building SF: 14,176
Land SF: 11,175
Pro Forma NOI: $525,768
15 SALES COMPARABLES
PRICE/SF CAP CLOSE OF # ADDRESS SALES PRICE PRICE/SF BLDG SF LAND SF (LAND) RATE ESCROW
6055 W. Pico Blvd 1 $9,100,000 $881.61 $343.03 10,322 26,528 - 6/5/2018 Los Angeles, CA 90035
1737 S. La Cienega Blvd 2 $6,900,000 $764.29 $329.32 9,028 20,952 1/23/2018 Los Angeles, CA 90035
8213-8223 W. 3rd St 3 $9,600,000 $1,326.52 $1,001.75 7,237 9,583 3.00% 8/8/2017 Los Angeles, CA 90048
5801 W. Pico Blvd 4 $7,226,000 $1,399.03 $418.38 5,165 17,272 - 4/12/2018 Los Angeles, CA 90019
5935-5949 W Pico Blvd 5 $14,100,000 $1,193.30 $546.50 11,816 25,801 - 1/18/2019 Los Angeles, CA 90035
8583 W Pico Blvd 6 $1,575,000 $901.03 $602.62 1,748 2,614 6.00% 8/21/2018 Los Angeles, CA 90035
8815-8823 W. Pico Blvd 7 $4,435,000 $789.57 $509.07 5,617 8,712 - 12/31/2018 Los Angeles, CA 90035
9563 W. Pico Blvd 8 $2,850,000 $570.00 $507.19 5,000 5,619 5.26% 12/10/2017 Los Angeles, CA 90035
9616-9618 W. Pico Blvd 9 $50,250,000 $705.92 $953.77 71,184 52,686 - 11/7/2018 Los Angeles, CA 90035
Average $11,781,778 $947.92 $579.07 14,124 18,863 4.76% -
16 1 6055 W. Pico Blvd. Los Angeles 2 1737 S. La Cienega Blvd. Los Angeles 3 3 8213-8223 W. 3rd St. Los Angeles 4 5801 W. Pico Blvd. Los Angeles 5 5935-5949 W. Pico Blvd. Los Angeles 6 8583 W. Pico Blvd. Los Angeles 7 8815-8823 W. Pico Blvd. Los Angeles 8 9563 W. Pico Blvd. Los Angeles 9 9616-9618 W. Pico Blvd. Los Angeles 8 8600 W. Pico Blvd. Los Angeles 9 7 6 1 5 4
2
8600 W. Pico Blvd $529
17 RENT COMPARABLES
# ADDRESS LEASABLE AREA RENT/SF/MONTH RENT/SF/YEAR LEAST TYPE SPACE AVAILABILITY
1415 S. La Cienega Blvd 670 SF Available 1 5,876 $3.00 $36.00 UTIL Los Angeles, CA 90035 in 1 Space
8835-8837 Pico Blvd 1,000 SF Available 2 5,124 $4.00 $48.00 MG Los Angeles, CA 90035 in 1 Space
8590 W. Pico Blvd 1,000 SF Available 3 24,707 $3.25 $39.00 NNN Los Angeles, CA 90035 in 1 Space
8624 W. Pico Blvd 1,000 SF Available 4 3,840 $3.00 $36.00 NNN Los Angeles, CA 90035 in 1 Space
3,000 - 6,000 SF 1445 S. Robertson Blvd 5 6,000 $4.00 $48.00 NNN Available in 2 Los Angeles, CA 90035 Spaces
3,600 SF 1449-1451 S. Robertson Blvd 6 3,600 $4.00 $48.00 NNN Available in 1 Los Angeles, CA 90035 Space
1482-1484 S. Robertson Blvd 800 SF Available 7 3,746 $3.50 $42.00 NNN Los Angeles, CA 90035 in 1 Space
Average 7,556 $3.54 $42.43 - -
18 1 1415 S. La Cienega Blvd. Los Angeles 2 8835-8837 Pico Blvd. Los Angeles 3 8590 W. Pico Blvd. Los Angeles 4 8624 W. Pico Blvd. Los Angeles 5 1445 S. Robertson Blvd. Los Angeles 6 1449-1451 S. Robertson Blvd. Los Angeles 2 7 1482-1484 S. Robertson Blvd. Los Angeles 8600 W. Pico Blvd. Los Angeles 5 6 4 3 7 1
8600 W. Pico Blvd $1.56
19 20 AREA OVERVIEW Home many to celebrities, hotels, five-star Beverly HillsBeverly of icon isaworld-renowned and theRodeo , shopping Drive district sophistication and luxury. sophistication Beverly Hills other prominent people.Beverlyhome tois Hills theworld Its residences includeHollywood celebrities,politicians,and Beverlyis an extremelyHills affluent city inLosAngelesCounty. Hills. and the Los Angelesneighborhoods of BelAirand Holmby area’sTriangle”“Platinum formed is bythecityof Beverly Hills south by the Beverlywood neighborhood of LosAngeles.The Angeles, and the Fairfax District of LosAngeles, and on the neighborhood the eastbyWestof Los Hollywood, the Carthay neighborhood of Bel-AirandtheSantaMonicaMountains,on Beverly isbordered Hills bytheLosAngeles onthenorthwest Beverly Hills
famous upscale shopping street of Rodeo Drive. Rodeo Drive is the centerpiece of commerce and is comprised of the most luxurious shopping, dining and hotel destinations in the world. The Beverly Hills market has consistently achieved the highest commercial rents in the United States. Demand in Beverly Hills is soaring and supply is limited.
From world-renowned fashion houses to one-of-a-kind local boutiques, Beverly Hills offers a shoppers’ paradise located within a compact, easily walkable area known as the Golden Triangle. Rodeo Drive is the epicenter for luxury retail in the United States. Beverly and Cañon Drives also provide hundreds of local boutiques, unique luxury shops, fantastic Beverly Hills restaurants and open-air cafés. Anchoring the southern border of the Golden Triangle is Department Store Row, home to the titans of luxury retailing, including Neiman-Marcus, Saks Fifth Avenue and Barneys New York. The city attracts residents with its luxurious live/work/play/shop lifestyle. Median sales prices in Beverly Hills residential homes easily exceed four million dollars.
21 22 AREA OVERVIEW million square feet of Class squaremillion A feet of office space andabrand-new space office real estate firms andmore. companies, communication and entertainment prominent doctors, lawyers, bankers, CPAs, and their 40,000 employees, includingmany professionalhome to 2,500 businesses some of Cityprovides primeoffice a space, Century In fact, withitsmore than tensquare million feet City.in Century Cruisesisalsoheadquartered Corporation. Crystal Management, and International LeaseFinance Constellation Place (formerly the MGM Tower), of Houlihan Lokey, has the headquarters International Creative the center’s statusasoneof theWestside’s destinations.Onetower, premier shoppingandentertainment Westfield Shopping Center World business class park with approximatelywith ten Century City million renovationmillion andexpansionto thataims maintain currently Cityis undergoingWestfield an$800 Century acreage in theneighborhood. As ofimportant 2016, City and Fox StudiosWestfield Century occupy towers, andFox Studios. Cityshoppingcenter,Westfield Century business toon the Westside. the economy are the Important form a distinctivecenters, and its skyscrapers skyline metropolitan area’s mostprominent employment one of Cityis the Downtown LosAngeles,Century Westside.district inLosAngeles’ business Outside of a 176-acre Cityis (71.2ha) neighborhood and Century 23 24 AREA OVERVIEW Westfield CenturyCity jobs andisprojected to generate $1.4billionineconomicoutput. revitalization of Citywillcreate Westfield approximately Century 10,000newpermanent retail andconstruction Westfield’sUnderscoring to commitment continuedeconomic growth intheCityaswell, the$800+million free Wi-Fiandanew bicycle loungewithsecure parking andchangingrooms. ‘park and premium assist’ system. Additional highlights have amenities, included upgraded valet services City’sWestfield Century also completinganewparking is structure incorporating Westfield’s easy-to-use the West Coast’s EatalycelebratingItalianculture, first cuisine,anditsmostauthenticflavors. design concepts,completely remodeled three-level Bloomingdale’s, modern newtwo-level Macy’s, aswellas and international designer brands, a new three-levelcontemporary flagship Nordstrom featuring its latest City’sWestfield Century expansion createssquare a1.2million footshowcase formore than200luxury, 25 DEMOGRAPHICS
29,920 Total Population of Pico-Robertson, Los Angeles. The median age is 36.1. 47% 53% EDUCATION MALE FEMALE
14.77% 5.85% 35.35% 22.98% High School Associates Degree Bachelor’s Degree Graduate Degree
SUMMARY Pico-Robertson is the heart of LA's Jewish community, with dozens of kosher restaurants, kosher supermarkets, several Jewish day and high schools, and six synagogues. Many Persian Jews immigrated here in the 1980s to flee persecution in Iran, and they've added their cuisine to the mix of Mexican, Chinese, and Italian places around the neighborhood. The residential streets are a mix of mostly single story homes and small apartment buildings. This neighborhood is bordered on the west by Beverlywood and Cheviot Hills, on the north by Beverly Hills, on the east by Carthay and Mid-City.
26 Pico-Robertson has a distinct community feel, with shops and restaurants within easy walking distance. Along the main thoroughfares of Pico Boulevard and South Roberston Boulevard, you'll find dozens of dining options, ranging from delis to upscale steakhouses.
$106,883 953,780 $60,464 Average HH income within 1-m radius Population within 5-m radius Median HH income within 5-m radius
116,988 288,401 62,663 Owner Occupied Households Renter Occupied Households Businesses within a 5-m radius within 5-m radius within 5-m radius
27 W. PICO BOULEVARD
BRANDON BRANDON MICHAELS Senior Managing Director of Investments MICHAELS Senior Director, National Retail Group GROUP Tel: (818) 212-2794 Fax: (818) 212-2710 [email protected] License: CA #01434685