For Sale 2028-2030 Montana Avenue Santa Monica, Ca 90403
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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 PARCEL 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, none and A-list out-of-towners, whom of of seem ahurry in crowd leave. to amid arelaxed storefronts the browse shoppers surrounding of stream asteady sunset, to sunrise From all and bustle. the from hustle removed blocksMonica, feelsit from Downtown Santa merely Though and retailers. it’s 150restaurants than more of is home astretch to Avenue Montana 6th St The property’s locationwithintheMontanaShoppingDistrictoffers unparalleledaccess Avanti Nail Spa The Massage Place Subway M7 Fitness European Wax Center Drugtown Pharmacy Chase Bank Mighty Pilates 7th St Primo Passo Coffee Co Starbucks Savannah Let’s Travel Texture Rawkin Juice Marmalade Cafe American Beauty Salon Frankie’s on the Park Montana Eyes Osteria Bigoli Spumoni Italian Larkellen to lifestyleamenitieswithinashort walk Flair Cleaners Cest L’Ave Angelo’s Shoe Repair Fresh Fruit Co Fleur Santa Monica William H Hannon Foundation Andrew’s Cheese Shop Pharmaca Pharmacy Menchie’s Massage Envy Spa Lincoln St Panda Express SHOPPING DISTRICT Roosevelt Elementary School Pavillions 9th St Wells Fargo Robert C Dickey OD Estell Boutique Platino KidsBizz Rori’s Artisinal Creamery John G Adomian Christins Lynn Tu Wag For Doggy Day Care Greens Up! Salads Caffe Luxxe Jill Roberts Tu Wag For Spa Fox Coin Laundry Uprise Pilates Ogden Cleaners Opticali Rosti Montana Naturale 10th St Art’s Table Auburn Salon Step! Shoes The Shade Store A1 Chinese Laundry Dry Cleaning Frilly Lilly Louise’s Trattoria Gibson Rachel Ashwell Chic Couture Claude Joaillier Peek Kids Father’s Office At the Table Productions Dermalogica Sofa U Love Esquire Barber Shop Ele Keats Jewelry Kreation Organic Kafe Stretch Lab Shin Hair Palmetto Stacia J. Jill 11th St Union Bank The Duck Blind Mozaffari Law Master Cleaner Footsie Butter Locanda Portofino Emphatic The Closet The Quilted Monkey John Kelly Chocolates Montana Cleaners iSpa Lane Montana Mail La Vitrine Sechoir Giggle Engle & Volgers 20 Brenda Himmel Stationary Malin + Goetz Ten Women Larissa Love Cha Spa Balance Massage 2028-2030 MONTANAExir AVENUE | SantaShelley Monica Starr 12th St Door to Door Cleaners Rosemary McCaffrey Antiques Golden Wellness Rx Montana Avenue