FOR SALE 2028-2030 MONTANA AVENUE SANTA MONICA, CA 90403
SANTA MONICA INVESTMENT OPPORTUNITY ALONG MONTANA AVENUE T.C. MACKER | PRESIDENT 310.966.4352 | [email protected] DRE # 01232033 www.westlacommercial.com
JENNIFER MOSCOSO | ASSOCIATE 310.966.4397 | [email protected] DRE # 02044716 www.westlacommercial.com
WESTMAC COMMERCIAL BROKERAGE COMPANY 1515 Sepulveda Boulevard, Los Angeles, CA 90025 310.478.7700 / www.westmac.com © 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 Company DRE# 01096973 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. FOR SALE 2028-2030 MONTANA AVENUE SANTA MONICA, CA 90403
© 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. EXECUTIVE SUMMARY: THE FARMS Montana Avenue Investment Opportunity
WESTMAC Commercial Brokerage Company is pleased to present the opportunity to acquire 2028-2030 Montana Avenue in Santa Monica. 2028-2030 Montana Avenue is located in the upscale Montana Shopping District of Santa Monica. 2028-2030 Montana Avenue is situated on two parcels comprising of a single-tenant one-story commercial building approximately 4,000-square feet and a parking lot. The total land size is approximately 8,000-square feet. There are approximately eight (8) parking spaces in the parking lot. The property is zoned residential with a CUP which permits the use of the property as a market (no expiration date).
The tenant is a market called The Farms. The current lease expires November 4, 2028. The monthly triple net (NNN) rent is currently about $14,063 with CPI adjustments each July 1.
Located along Montana Avenue, 2028-2030 Montana Avenue is walking distance to an abundance of high-end retailers, restaurants, and businesses all of which are part of the popular shopping destination known as the “Montana Avenue Shopping District” in the affluent Wilshire Montana neighborhood. 2028-2030 Montana Avenue is also a short 4-block walk to Wilshire Boulevard and minutes from Santa Monica’s bustling tourism industry, including Santa Monica Beach, Santa Monica Pier and Third Street Promenade
2028-2030 Montana Avenue offers buyers ease of management and stable cash flow along a highly coveted street in one of the most sought after markets in the world.
2028-2030 MONTANA AVENUE | Santa Monica 4 OFFERING MEMORANDUM 5 PROPERTY INFORMATION
2028-2030 Montana Avenue, ADDRESS BUILT 1925 Santa Monica, CA 90403
APN(S) 4277-005-001; 4277-005-002 STORIES One (1)
BUILDING SIZE ± 4,000-square feet ZONING SMR2* with CUP permit for market use
LOT SIZE ± 8,000-square feet FRONTAGE 80’ along Montana Ave.; 100’ along 21st St.
PARKING Approximately eight (8) spaces in rear lot APPROXIMATE NOI $168,763
CURRENT USE Full Line Grocery and Liquor Store CAP RATE 3.3%
OCCUPANCY Single; Occupied by The Farms ASKING PRICE $5,100,000 ($1,275/sf)
2028-2030 MONTANA AVENUE | Santa Monica 6 21ST STREET AERIAL VIEW
MONTANA AVENUE
N BUILDING REAR PARCEL MAP
N PARKING LOT
OFFERING MEMORANDUM 7 PROPERTY HIGHLIGHTS
Well known neighborhood market with longevity and an affluent customer base.
Well-maintained building.
High visibility with great signage along Montana Avenue.
Ample parking in rear lot (8 spaces).
Located in Santa Monica’s upscale Wilshire Montana neighborhood.
Short walking distance to outstanding shopping, dining, and lifestyle amenities along Montana Avenue and Wilshire Boulevard.
Unbeatable location, minutes from Downtown Santa Monica and tourist hot spots including: Santa Monica Beach, Santa Monica Pier, Third Street Promenade, and Palisades Park.
Easily accessible by public transportation.
2028-2030 MONTANA AVENUE | Santa Monica 8 OFFERING MEMORANDUM 9 2028-2030 MONTANA AVENUE | Santa Monica 10 OFFERING MEMORANDUM 11 INVESTMENT HIGHLIGHTS Stable Cash Flow - Current rent of $3.51 per square foot per month triple net (NNN) provides a consistent cash flow for buyers with significant future upside if tenant vacates.
Long Term Tenancy - Tenant has occupied this location for 30 years; this longevity has acquired a dedicated customer base that helps drive sales.
Ease of Management - Minimal landlord responsibilities.
Location Upside - Tenants and properties in this location benefit from Santa Monica’s booming tourism economy and Silicon Beach’s market drivers, including a constant influx of employees and consistent demand for housing, making Santa Monica an exclusive place to live and work.
High Demand, Low Supply - The imbalance between supply and demand for commercial property in Santa Monica results in a lack of quality real estate options for buyers. 2028-2030 Montana Avenue presents a rare opportunity to purchase property along Montana Avenue – a street along which few properties have traded over the last decade.
2028-2030 MONTANA AVENUE | Santa Monica 12 OFFERING MEMORANDUM 13 TENANT PROFILE THE FARMS
A longtime staple and neighborhood favorite, The Farms market is a convenience store which features fresh food and produce, a full-service deli, and a wide selection of wine and spirits. The combination of an expansive butcher section and sidewalk seating creates a comfortable environment for customers to purchase and enjoy their food. The Farms is a beloved neighborhood market with a dedicated community-centered consumer base.
ESTABLISHED IN NEIGHBORHOOD 1989 GROCERY STORE
SPECIALTIES: BBQ, DELI & CUSTOMER SERVICE PET FRIENDLY
2028-2030 MONTANA AVENUE | Santa Monica 14 OFFERING MEMORANDUM 15 LEASE ABSTRACT TENANT Sean McGuire (dba “The Farms”)
SIZE 4,000-square feet Single ten (10) year term TERM (Lessee exercised renewal option on November 5, 2018) November 5, 2018 COMMENCEMENT (Original Lease Date is March 30, 1989) EXPIRATION November 4, 2028
CURRENT RENT $14,063.64 NNN monthly ; $168,763.68 NNN annually
INCREASES CPI adjusts every July
OPTION TO EXTEND None Approximately $52,000 annually (±$1.08 per square foot, per month) *CAM ** Real estate taxes, insurance, building maintenance and other expenses paid by tenant RIGHT OF FIRST REFUSAL Ten (10) days written notice at accepted price and terms from third party
LEASE FORM AIR Standard Industrial Lease
* CAM is estimated. Taxes will be assessed at higher value upon sale (Price * 1.25%). Does not take into account down time, TIs, reserves or capital improvements.
** Real estate taxes and insurance reimbursed by tenant; other expenses paid directly.
2028-2030 MONTANA AVENUE | Santa Monica 16 OFFERING MEMORANDUM 17 LOS ANGELES INTERNATIONAL AIRPORT VENICE Prime SANTA MONICA SANTA MONICA BOULEVARD
2028-2030 MONTANA AVENUE SANTA MONICA, CA 90403
WILSHIRE-MONTANA N SANTA MONICA PIER
THIRD STREET PROMENADE
DOWNTOWN SANTA MONICA
MONTANA SHOPPING DISTRICT
MONTANA AVENUE
MONTANA AVENUE SHOPPING DISTRICT (FULL LIST OF RETAILERS ON PG 20)
WILSHIRE-MONTANA Montana crowd of A-list celebrities, families, and out-of-towners, none of whom seem in a hurry to leave. crowd in ahurry seem of of A-list out-of-towners, whom and none families, celebrities, removed hustle from the bustle. and all From sunrise to sunset, asteady stream of surrounding shoppers browse the storefronts arelaxed amid Montana Avenue to astretch home is of more than 150restaurants it’s retailers. and Though merely Santa Downtown from it feels blocks Monica,