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 , , 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 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

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,

t St locationwithintheMontanaShopping Districtoffersunparalleledaccess The property’s Avanti Nail Spa

The Massage Place 2028-2030 Subway

M7 Fitness

MONTANA AVENUE European Wax Center

Drugtown Pharmacy Chase Bank Mighty Pilates

t St Primo Passo Coffee Co Starbucks Savannah Let’s Travel

Texture Rawkin Juice |

Santa Monica Marmalade Cafe American Beauty Salon

Frankie’s on the Park Montana Eyes

Osteria Bigoli Spumoni Italian Larkellen to lifestyle amenities within a short walk to lifestyleamenitieswithinashort 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

incon St

Panda Express SHOPPING DISTRICT

Roosevelt Elementary School Pavillions

t 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 t 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 t 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 Exir Shelley Starr t St Door to Door Cleaners Rosemary McCaffrey Antiques

Golden Wellness Rx n Montana Benefit Cosmetics Souliers Tracy’s Nails Christine Markatos Design The Music Castle Revolution Fitness Studio Skin Laundry The Courtyard Kitchen Ouidad Ritas Rings Noir Brow Bar Brown’s Cleaners Euro Time & Jewels Circle of Children Preschool Jurlique The Detox Market Francesca’s Michael Stars Artistic Nails Lucy Optical Design ci St Hastens Le Macron French Pastries Sushi Sho Sugaring LA Di Dios Tala Jewelers JJ Design Sweaty Betty Bamboora Bhhs CA Rooms & Gardens Balloon Celebrations Montana Optometry Janie & Jack Chicos R+D Kitchen Claire V Limonoia Splendid French Lesson Boutique RNX by Design Aero Theatre Allures Planet Blue Pacific Union International t St Blue Mercury Pee ts Coffee Quatrine M’Attias Morgane Lefay Ruti Prima Cocina LuxeLab Salon Only Hearts

Artlab Papyrus Jigsaw

Dry Bar Montana Nails Beaming Organic Cafe Olive + June Brentwood General Store Number One Beauty Blue Plate Yoga Works Fireside Cellars Starbucks Whole Foods

t St Pilates Place Zip Car Citibank

Vision Dental Montana Beauty Park Medical Spa Nest Bedding Kiehl’s Cami + Jax Kye’s

LF Stores Luxy Gem

Pink Chicken Holy Chic Los Angeles

Rosie Pop Maternity Steve Sawaii Moondance Jewelry Margo’s Burro

t St Bardonna William Sonoma Margaret O’Leary Jane

Coldwell Banker Kitchens on Montana Zain e Colour Salon Yoga Shop Forma Bellacures

Pinkberry Rita’s Rags Shopaholic Montana Music Stuido Citron Young Dental Stuido Montana Clock Shop Antoine Pierre Sepi Spa Nail Spa Lane Classic Kids Photography Santa Monica Postal Place Femelle Motalvo on Montana Threads on 17th

One West Bank Sweet Lady Jane Bakery

t St t St Avanti Nail Spa

The Massage Place

Subway

M7 Fitness

European Wax Center

Drugtown Pharmacy Chase Bank Mighty Pilates

t 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

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

incon St Panda Express

Roosevelt Elementary School Pavillions

t 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 t 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 t 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 Brenda Himmel Stationary Malin + Goetz Ten Women Larissa Love Cha Spa Balance Massage Exir Shelley Starr t St Door to Door Cleaners Rosemary McCaffrey Antiques

Golden Wellness Rx n Montana Benefit Cosmetics Souliers Tracy’s Nails Christine Markatos Design

OFFERING MEMORANDUM The Music Castle Revolution Fitness Studio Skin Laundry The Courtyard Kitchen Ouidad Ritas Rings Noir Brow Bar Brown’s Cleaners

Euro Time & Jewels Circle of Children Preschool BIGOLI OSTERIA Jurlique The Detox Market Francesca’s Michael Stars Artistic Nails Lucy Optical Design ci St Hastens Le Macron French Pastries Sushi Sho Sugaring LA Di Dios Tala Jewelers JJ Design Sweaty Betty Bamboora Bhhs CA Rooms & Gardens Balloon Celebrations Montana Optometry Janie & Jack Chicos R+D Kitchen Claire V Limonoia Splendid French Lesson Boutique RNX by Design Aero Theatre Allures ROSTI Planet Blue Pacific Union International t St Blue Mercury Peets Coffee Quatrine M’Attias Morgane Lefay Ruti Prima Cocina LuxeLab Salon Only Hearts

Artlab Papyrus Jigsaw

Dry Bar Montana Nails Beaming Organic Cafe Brentwood General Store Olive + June PORTOFINO Number One Beauty Blue Plate Yoga Works Fireside Cellars Starbucks Whole Foods

t St Pilates Place Zip Car Citibank

Vision Dental Montana Beauty Park Medical Spa Nest Bedding Kiehl’s Cami + Jax LE MACRON BAKERY Kye’s

LF Stores Luxy Gem

Pink Chicken Holy Chic Los Angeles

Rosie Pop Maternity Steve Sawaii Moondance Jewelry Margo’s Burro

t St Bardonna William Sonoma Margaret O’Leary Jane

Coldwell Banker Kitchens on Montana Zaine Colour Salon THE COURTYARD KITCHEN Yoga Shop Forma Bellacures

Pinkberry Rita’s Rags Shopaholic Montana Music Stuido Citron Young Dental Stuido Montana Clock Shop Antoine Pierre Sepi Spa Nail Spa Lane Classic Kids Photography Santa Monica Postal Place Femelle Motalvo on Montana Threads on 17th

One West Bank Sweet Lady Jane Bakery

t St 21 AREA SUMMARY Santa Monica More than 7 million visitors a year come to Santa Monica, a renowned beach city which is close to a multitude of other Los Angeles attractions. Santa Monica Beach averages more than 300 days of sunshine a year and offers some of the best sunsets on the West Coast. Santa Monica is known as a walkable and bike-friendly town, allowing visitors to get around with ease and experience the myriad of shops, restaurants, and attractions.

The city of Santa Monica has experienced tremendous growth as a dining and entertainment center serving the Los Angeles area. The city has been actively redeveloping its core, transforming historic and functionally outdated buildings into trendy retail and entertainment venues, including a $50 million restoration of the iconic City Hall building, a $55 million, seven acre redesign of Palisades Park, and a $265 million renovation of the Santa Monica Place mall, which is adjacent to Third Street Promenade, the city’s premier retail and entertainment hub.

SANTA MONICA PIER PACIFIC PARK SANTA MONICA BEACH PALISADES PARK

SANTA MONICA PLACE THIRD STREET PROMENADE FARMERS MARKET MAIN STREET

2028-2030 MONTANA AVENUE | Santa Monica 22 Santa Monica has emerged as the center of the technology, entertainment, and digital information industries in Southern thanks to the rise of Silicon Beach

Santa Monica has experienced a boom since the late 1980s, which can be seen in the revitalization of its downtown area, significant job growth and increased tourism. These facets have all exploded thanks to the emergence of the booming tech industry which has engulfed the area in what is known today as Silicon Beach. The economic boom has led to a rise in the cost of housing, a spike in employment rates, and a revitalized interest in development projects, which experts forecast will continue to thrive.

The region has attracted an estimated 500 tech companies, ranging from startups to established tech giants. Recognizable names like Google and Facebook, are neighbors with buzzy startups, like Bird and Fair. In an analysis of over 175 local startups, Mediakix found Silicon Beach startups to be worth over an estimated $155 billion in valuation. This valuation will continue to grow as Silicon Beach expands, attracting more entrepreneurs and investors to the region.

TOP TEN santa monica SANTA MONICA EMPLOYERS

UCLA Medical Center City of Santa Monica Santa Monica College Providence Saint John’s Health Center Santa Monica Malibu Unified School District Snap Inc. Activision Publishing Inc. Lionsgate Entertainment Rand Corporation pacific ocean Hulu playa vista

venice 23

south bay lax DEMOGRAPHICS

FROM SUBJECT PROPERTY

POPULATION 1-MILE 3-MILE 5-MILE

Population (2019 Estimate) 30,329 213,177 438,995

Population (2024 Forecast) 30,474 217,815 447,196

HOUSEHOLD 1-MILE 3-MILE 5-MILE

Households (2019 Estimate) 14,398 103,996 204,886

Med. Household Income (2019) $111,375 $91,471 $91,864

Avg. Household Income (2019) $138,086 $123,369 $124,625

BUSINESS 1-MILE 3-MILE 5-MILE

Total Businesses 3,543 18,398 32,612

Total Employees 25,009 179,921 373,912

Total Consumer Spending $473,950 $3,106,924 $6,221,982

CITY OF SANTA MONICA

ZILLOW HOME VALUE INDEX ZILLOW RENT INDEX Avg. Rent Paid Med. Home Value $1,663,700 $5,087 (homes, condos, apts)

2028-2030 MONTANA AVENUE | Santa Monica 24 2028-2030 MONTANA AVENUE SILVERLAKE HOLLYWOOD

UCLA BEVERLY HILLS

MID WILSHIRE BRENTWOOD KOREATOWN

DOWNTOWN WEST LA LA

SANTA MONICA USC CULVER CITY LEIMERT PARK VENICE

MARINA DEL REY N pacific ocean WESTCHESTER

OFFERING MEMORANDUM INGLEWOOD 25 Montana SALE COMPARABLES 729 Montana Avenue, Santa Monica, CA 90403 Sale Date 3/29/17 Property Type Retail/Office Sale Price $15,500,000 Bldg SF 10,175 SF Price/SF $1,523 Land SF 14,810 SF Cap Rate - Year Built 2001 APN # 4293-011-015 Zoning SMC2

1620 Montana Avenue, Santa Monica, CA 90403 Sale Status On Market Property Type Office Sale Price $4,700,000 Bldg SF 2,736 SF Price/SF $1,718 Land SF 4,792 SF Cap Rate - Year Built 1965 APN # 4281-001-002 Zoning SMC2YY

1620 Montana Avenue, Santa Monica, CA 90403 Sale Date 2/21/17 Property Type Office Sale Price $3,500,000 Bldg SF 2,736 SF Price/SF $1,279 Land SF 4,792 SF Cap Rate - Year Built 1965 APN # 4281-001-002 Zoning SMC2YY

2028-2030 MONTANA AVENUE | Santa Monica 26 SALE COMPARABLES 1028-1034 Montana Avenue, Santa Monica, CA 90403 Sale Date 1/26/16 Property Type Retail Sale Price $6,500,000 Bldg SF 4,118 SF Price/SF $1,578 Land SF 7,405 SF Cap Rate 4.42% Year Built 1954 APN # 4281-024-001 Zoning SMC2

1031-1033 Montana Avenue, Santa Monica, CA 90403 Sale Date 4/17/15 Property Type Office Sale Price $3,800,000 Bldg SF 2,929 SF Price/SF $1,297 Land SF 5,380 SF Cap Rate - Year Built 1950 APN # 4280-024-015 Zoning SMC2YY

1505 Montana Avenue, Santa Monica, CA 90403 (part of portfolio) Sale Date 1/31/14 Property Type Retail Sale Price $6,640,454 Bldg SF 5,632 SF Price/SF $1,179 Land SF 9,997 SF Cap Rate - Year Built 1984 APN # 4279-026-029 Zoning SMC2*

OFFERING MEMORANDUM 27 2028-2030 MONTANA AVENUE | Santa Monica 28 DISCLAIMER

This offering has been prepared solely for informational purposes. While the information contained herein is from sources deemed reliable, it has not been independently verified by WESTMAC Commercial Brokerage Company or by the Seller.

This document is provided subject to errors, omissions and changes in the information and is subject to modification or withdrawal. The contents herein are confidential and are not to be reproduced without the express written consent.

Interested buyers should be aware that the Seller is selling the Property “AS IS” CONDITION WITH ALL FAULTS, WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE.

The Seller reserves the right to withdraw the Property being marketed at any time without notice, to reject all offers, and to accept any offer without regard to the relative price and terms of any other offer.

Prospective buyers shall be responsible for their costs and expenses of investigating the Property and all other expenses, professional or otherwise, incurred by them.

OFFERING MEMORANDUM 29 FOR SALE 2028-2030 MONTANA AVENUE SANTA MONICA, CA 90403

FOR MORE INFORMATION CONTACT:

T.C. MACKER, CCIM JENNIFER MOSCOSO 1515 S Sepulveda Boulevard, 310.966.4352 310.966.4397 Los Angeles, CA 90025 [email protected] [email protected] 310.478.7700 | DRE #01096973 DRE #01232033 DRE #02044716 www.westmac.com