2618 2Nd Street Santa Monica, CA

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2618 2Nd Street Santa Monica, CA 2618 2nd Street Santa Monica, CA $2,695,000 4.07% Current Capitalization Rate Turnkey Building Steps Away from World-Famous Santa Monica State Beach Table of Contents 3 Investment Summary ▪ The Opportunity ▪ Property Description ▪ Exterior and Interior Photos ▪ Aerial Photos 11 Market Overview ▪ Apartment Market Overview ▪ Places of Interest ▪ Silicon Beach Major Employers ▪ Nearby Developments ▪ Demographics 17 Financial Summary ▪ Pricing, Property and Operating Statement Summary ▪ Rent Roll ▪ Sales Comparables ▪ Sales Comparables Map ▪ Rent Comparables ▪ Rent Comparables Map John Swartz Josh Kaplan Copyright © 2021 Transwestern. California Brokerage License #01263636. The Managing Director Managing Director information in this offering memorandum was gathered by Transwestern from 213.430.2526 213.430.2538 sources believed reliable. Transwestern has not verified the information and [email protected] [email protected] makes no guarantee, warranty or representation about it. It is the potential buyer’s CA Lic 01873487 CA Lic 01934177 responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and Troy Lucero Transwestern Real Estate Services do not represent the current or future performance of the property. Potential Senior Associate 601 S. Figueroa St, Suite 3650 buyers and their advisors should conduct a careful, independent investigation of 213.457.1656 Los Angeles, CA 90017 the property to determine to their satisfaction the suitability of the property for [email protected] 213.624.5700 their needs. CA Lic 02015701 transwestern.com Investment Summary Transwestern as the exclusive listing agent is pleased to present the opportunity to acquire 2618 2nd Street, Santa Monica, California 90405, a 3-unit property comprised of a bungalow and a detached duplex located in Ocean Park submarket just 2 blocks from the ocean and within feet of Main Street/Downtown Santa Monica. The Opportunity ▪ Meticulously upgraded turnkey buildings offered at a 4.07% cap rate just 2 blocks from the beach ▪ Unique opportunity to purchase as either an investment property or owner/user ▪ Prime Santa Monica location within feet of Main Street / Downtown Santa Monica Offering Price: $2,695,000 ▪ Walk Score of 96 (Walker’s Paradise) ▪ Two buildings with a superior unit mix – one stand- 18.2 Current Gross Rent Multiplier alone 2bed+2bath bungalow and two 2bed+2bath 4.07% Current Capitalization Rate units in a two-story duplex ▪ Very large units with upscale appliances and unit 12.8% Rental Upside upgrades Prime Location with Walk Score of 96 ▪ All units have separate entrances and their own private outdoor space. 3 Property Description 2618 2nd Street is a turnkey three-unit complex comprised of two buildings: A 910-square foot freestanding bungalow constructed in 1907 and a 1,456-square foot two-unit building constructed in 1928. All the units ADDRESS are large 2bed+2bath units. Both buildings are walk-up buildings situated on a 2,502-square-foot lot. Each 2618 2nd Street unit has its own private entrance. Santa Monica, CA 90405 All of the units have been meticulously upgraded with upscale finishes and appliances. Each unit is equipped YEAR BUILT with a tankless hot water heater, dishwasher, and stackable washers and dryers. An investor will enjoy 1907/1928 significant cashflow from day one. The location and unit types will allow an investor to increase rents as units NUMBER OF BUILDINGS become vacant. Two Parking is provided on street with permits. Each of the units are separately metered for gas and electricity. NUMBER OF UNITS The plumbing has been updated to all-copper plumbing. Three total units One 2bed+2bath freestanding bungalow Two 2bed+2bath units in detached two-level duplex TOTAL BUILDING SIZE1 +2,366 SF Bungalow: +910 SF Duplex: +1,456 SF LAND SIZE1 +2,502 SF ZONING1 SMOP2 ASSESSOR PARCEL NUMBER 4288-002-003 PARKING Permitted street parking 1Per The MLS Realtx - Buyer to verify 4 Property Location 2618 2nd Street is located in the Ocean Park neighborhood, which is the southwest many more, Silicon Beach’s leading-edge employers provide a desirable renter corner of Santa Monica and is bordered from the beach to Lincoln Boulevard and pool of high-income young professionals. between Pico Boulevard and the southern city limits. This area is popular with Along with this economic transformation has come an increase in a young, affluent, sunbathers, surfers, and volleyball players. Health-conscious joggers and bikers educated population, employed by companies who invest heavily in attracting top- use the beachside path, parks offer playgrounds and picnicking, and vegetarian tier talent. Median household income in the 90405 zip code is $95,674, which is eateries line Main Street. The area is dotted with modernist apartments and significantly above that of Los Angeles County ($68,000). With the median home Craftsman bungalows, and the California Heritage Museum, a repurposed Victorian price in the 90405 zip code at nearly $1.8 million (over $1,000 per square foot), home, shows modern art and hosts a weekly gathering of food trucks. rental demand is strong as homes remain largely unaffordable for the working At the intersection of Santa Monica and neighboring Venice Beach, this property is populace. in the geographic heart of Silicon Beach. Home to world-class technology, media and entertainment companies such as Google, Facebook, Hulu, Electronic Arts and 5 Interior Photos 6 Interior Photos 7 Exterior Photos 8 Aerial View Facing West 9 Aerial View Facing South 10 Market Overview Los Angeles Apartment Market Overview COVID-19 upended what is typically one of the country’s most stable apartment built. Outside of a few development hotspots like Downtown L.A., Hollywood, and markets, but the L.A. apartment sector appears to be regaining its footing. Koreatown, most submarkets aren’t seeing much pressure from new supply. That Apartment demand is intensifying in 2021 as the public health situation improves, is helping to keep occupancies at healthy levels in most parts of town. and average rents are growing for the first time since the outbreak. Suburban While this market isn’t dominated by new development, it is very much dominated submarkets are posting the strongest growth, while pricey areas near job hubs by an eager supply of renters. About 50% of households rent their homes, one continue to underperform. of the highest percentages in the U.S. In normal economicGlendale times, the imbalance UV134 The region’s inherent supplyj constraints have helped to mitigate the worst between supply and demand keeps vacancies low and tilts the playing field in favor effects of the pandemic. The high costs of land, construction, and entitlements, j j of landlords and owners. During previous¨¦§5 slowdowns, that same imbalance has ¨¦§405 combined with intense community opposition, severely limit how much housing is j limited the scale of losses and aided the recovery once conditions improved. j Santa Monica Mtns National Rec Area j j Topanga State Park j Topanga j j j Hollywood West Hollywood j Beverly Hills UV27 j Koreatown Will Rogers Statej Historic Park Brentwood Century City Mid-Wilshire Pacific Palisades Downtown Topanga Beach Los Angeles UV1 j Culver City Exposition Park Santa Monica State Beach j Kenneth Hahn State Recreation Area Santa Monica j 2618 2nd Street Venice Huntington ParkBell Pacific Ocean Playa Vista 11 j Inglewood South Gate j Westmont Dockweiler Beachj State Park UV1 ¨¦§405 Lynwood Market Overview Santa Monica Submarket Overview Thanks to its desirable location, gorgeous weather, and wealth of employment and entertainment options, Santa Monica is one of the premier residential neighborhoods in the country. That reputation helps generate some of the highest rents and sale prices in the L.A. metro. New development is historically limited in Santa Monica thanks to sky-high construction costs, a time-consuming and costly permitting process, and influential NIMBY groups. The affluent renter pool, pricey rents, and supply constraints that define the Santa Monica apartment market combine to make this one of the most expensive areas to buy in L.A. Trading has slowed noticeably during the pandemic but well-located assets here still command premier pricing. 12 Places of Interest BRENTWOOD Wilshire Blvd Ronald Reagan UCLA Medical Ctr BRENTWOOD HEIGHTSBarrington Recreationj Center Santa Ynez Canyon Park Los Angeles National Cemetery j Veteran Ave WESTWOOD WESTWOOD VILLAGE CENTURY CITY Temescal Gateway Park j RIVIERA Veterans Administration Med Ctr ▪ California Heritage Museum Will Rogers State Historic Park Manning Ave j BRENTWOOD PARK ▪ Third Street Promenade ▪ Santa Monica State Beach San Vicente Blvd S Sepulveda Blvd PACIFIC PALISADES Brentwood Country Club ▪ Santa Monica Pier Riviera Country Club WEST LOS ANGELES 26th St RANCHO PARK ▪ Aero Theatre Cotner Ave 20th St ▪ Riviera Country Club W Sunset Blvd W Olympic Blvd CASTELLAMMARE Idaho Ave S Bundy Dr Westwood Blvd ▪ Brentwood Country Club W Pico Blvd Manning Ave Temescal Canyon Rd UV1 UV2 ¦¨§405 ▪ Palisades Park Palisades Park SAWTELLE Overland Ave j CITY OF SANTA MONICA ¦¨§405 Aero Theatre ▪ Santa Monica Place Mall 26th St Montana Ave South Will Rogers State Beach ▪ Will Rogers Historic Park 14th St S Barrington Ave Bergamot Station Centinela Ave 20th St ¦¨§10 ▪ Bergamot Station Ocean Ave Ext Sawtelle Blvd 7th St National Blvd Palisades Park Wilshire Blvd Pico Blvd PALMS 23rd
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