Santa Monica Blvd
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5425 SANTA MONICA BLVD Prime Hollywood Mixed-Use Investment Opportunity Made Up of 30 Apartment Units, 6,500 SF of Commercial Space and Unique Signage Income CAP Rate of 5.37% and 12.00 GRM on Current Income CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made 01 any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of 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 and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. 02 NON-ENDORSEMENT NOTICE Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) 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 sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. 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 sponsorship or endorsement by, said corporation 03 of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. EXCLUSIVELY LISTED BY: 04 NEEMA AHADIAN LEONARDO LATERZA Senior Vice President of Investments Senior Associate of Investments Tel: (310) 909-5444 Tel: (310) 909-2372 Fax: (435) 915-3662 Fax: (435) 915-3662 [email protected] [email protected] License: CA 01346750 License: CA 01861324 2 3 PANTAGES SUNSET + VINE THEATRE SUNSET MEDIA SUNSETBRONSON CENTER STUDIOS CNN COLOUMBIA HOME DEPOT SQUARE BERSTEIN HIGH EXECUTIVE SUMMARY SCHOOL TARGET ARCLIGHTCINEMAS HOLLYWOOD FONDATHEATRE & VINE NETFLIX VIACOM FOOD 4 LESS Marcus & Millichap is pleased to present 5425 Santa KING Monica Boulevard in Los Angeles, CA 90029. Built in 1925, STARBUCKS BUFFET this prime mixed-use investment opportunity consists of 30 NETFLIX apartment units and 6,500 SF of commercial space located in the Hollywood Studio District of Los Angeles. This four-story building features 24 singles, 6 one-bedrooms, and 4 retail or office spaces. LA DESCARGA This offering presents the investor the opportunity to purchase a well-maintained property with stable cash flow of 5.37% on current income. The apartment units offer over 16% rental upside as units turn along with rental increases throughout the leases of the commercial tenants. Additionally, an investor will LA MONARCA BAKERY & CAFE US 101 have the opportunity to increase cash flow with the addition of HOLLYWOODFWY signage on the east side of the property. The Hollywood market remains one of the most desirable submarkets for living and working. With over 100,000 people MET THEATRE living within one-mile and an average home value of over 5425 SANTA MONICA BOULEVARD $840,000 within a three-mile radius, the demand for apartment SANTA MONICA BLVD units continues to increase year-over-year. The subject property has a walk score of 92 and offers direct access to the 101 Freeway and a quick walk to the Vermont/Beverly Station. 4 5 PROPERTY INFORMATION 5425 Santa Monica Boulevard, ADDRESS Los Angeles, CA 90029 NO. OF RESIDENTIAL UNITS 30 units APPROX. GROSS SF 27,192 SF APPROX. LOT SIZE 6,931 SF YEAR BUILT 1925 APN 5536-010-020 ZONING C4-1VL PRICING INFORMATION SALES PRICE $8,150,000 COST PER BLDG SF $300 CURRENT GRM 12.00 MARKET GRM 10.29 CURRENT CAP RATE 5.37% ROPERTY SUMMARY MARKET CAP RATE 6.64% P 5425 SANTA MONICA BLVD 6 7 INVESTMENT HIGHLIGHTS 30 4 92 APT UNITS COMMERCIAL WALK SCORE UNITS • 5425 Santa Monica Boulevard is a mixed-use investment • The subject property also features signage on both the east • 5425 Santa Monica Boulevard offers residents a very high walk opportunity consisting of 30 apartment units and four and west sides of the building allowing an investor to collect score of 92 and is located within walking distance to many of commercial spaces located in the Hollywood Studio District additional income; current west side is leased for $3,670 per Hollywood’s premier retail, dining and nightlife attractions; direct between Western Avenue and Normandie Avenue, a month with rent increases in 2022 & 2027; the east side is access to the 101 Freeway allowing for a quick commute to centralized location surrounded by transportation options for currently vacant; there is a rare permanent injunction in place Downtown Los Angeles and the San Fernando Valley residents to easily commute throughout Los Angeles without with the City of Los Angeles giving the owner the uncontested the need for a vehicle right to have wall signage, saving a considerable amount of • Ideal location for a retail or office commercial tenant with great time bypassing the permit process. street and foot traffic with such close proximity to the intersection • The subject property features 24 singles and 6 one- of Santa Monica Boulevard and Western Avenue bedrooms; the units are well-maintained and provide an • Located within a newly established Qualified Opportunity investor with strong in-place cash flow with an additional Zone for investment, established by the Tax Cuts and Jobs • Rare opportunity to acquire a well-located, mixed-use asset with 16% rental upside to be achieved as units turn; many of Act, Section 1400Z. The new section 1400Z allows any strong in-place cash flow in the prominent market of Hollywood, the units on the third and fourth floors of the building offer taxpayer to defer paying tax on capital gains from the sale one of the most densely populated rental submarkets in all of Los residents unparalleled views of the Hollywood Sign and of property if those gains are timely invested in a Qualified Angeles that continues to show increasing rents year over year Griffith Observatory Opportunity Fund (QOF) which, in turn, must invest 90 percent of its assets In business located or property used in • The first floor consists of four commercial spaces, ranging designated zones from 925-2,705 SF; minimal landlord responsibilities as LOCATED WITHIN A NEWLY ESTABLISHED electricity is paid for by the tenants; the spaces have high QUALIFIED OPPORTUNITY ZONE FOR ceilings with a clear height between 14-15’; unit 5427.5 has INVESTMENT, ESTABLISHED BY THE TAX a lease expiration of January 31, 2021 and the three others have fixed rent increases built into the option periods CUTS AND JOBS ACT, SECTION 1400Z 8 9 GRIFFITH OBSERVATORY CHILDREN’S LOS FELIZ CHILDREN’S KAISER HOSPITALHOSPITAL LALA PERMANENTE THAI TOWN JON’S FRESH US 101 HOLLYWOODFWY 5425 SANTA MONICA BLVD SANTA MONICA BOULEVARD 10 11 12 13 ACTUAL PROFORMA UNIT # UNIT TYPE SF NOTES RENT RENTS RENT 201 Single $1,350 $1,450 202 Single $1,193 $1,450 203 Single $1,362 $1,450 204 Single $1,347 $1,450 205 Single $1,347 $1,450 206 Single $1,193 $1,450 207 Single $1,347 $1,450 208 Single $1,395 $1,450 209 Single $1,208 $1,450 210 1+1 $1,495 $1,750 On-Site Manager* 301 1+1 $1,650 $1,765 302 Single $1,350 $1,465 303 Single $1,404 $1,465 304 Single $1,295 $1,465 305 Single $1,395 $1,465 306 Single $1,319 $1,465 307 Single $866 $1,465 308 Single $1,347 $1,465 309 Single $979 $1,465 ENT ROLL 310 1+1 $1,595 $1,765 401 1+1 $1,695 $1,780 402 Single $1,048 $1,480 R 403 Single $1,451 $1,480 404 Single $859 $1,480 405 Single $1,350 $1,480 406 Single $1,208 $1,480 407 Single $1,124 $1,480 408 Single $879 $1,480 409 1+1 $1,695 $1,780 410 1+1 $1,595 $1,780 Vacant - Tenant moving in July 15th 5427 JMP Visuals Retail 1300 $2,900 $3,100 Leased until 6/30/2021 + 4 1 Year Options 5427.5 The Mission Continues Retail 1600 $3,180 $3,840 Leased until 1/31/2021 5429 Joshua Tsarok Retail 925 $2,060 $2,775 Rent increase to $2,145 on 8/1/2020 Rent Increase to $4,600 on 3/1/2021 + 2 1 year 5424-28 Jens Jacob Retail 2705 $4,500 $5,004 options Total $51,981 $60,469 *On-SiteV Manager gets a credit of $500 per month for rent plus $1,200 per month in salary for hours worked.