ELEMENT WEHO A 24-UNIT, ULTRA-LUXURY MULTIFAMILY INVESTMENT OPPORTUNITY LOCATED IN THE TRENDY CITY OF WEST HOLLYWOOD
SOUTHERN CALIFORNIA MULTIFAMILY | EXECUTIVE SUMMARY A LUXURY, NEWLY RENOVATED WEST HOLLYWOOD OFFERING
THE OPPORTUNITY
Element WeHo is a three-story luxury apartment community located in the heart of West Hollywood, California. This mid-rise residential building offers 24 apartments featuring ultra-high-end upgrades and unparalleled access to all the action, glamour, and timelessness that West Hollywood has to offer. Each elegant residence features an open-concept design with hardwood floors and high-end finishes, including Calacatta quartz-finished kitchens with chef-quality Viking appliances, walk-in bedroom closets, oversized soaking tubs, dedicated wine and beverage refrigerators, and full-sized LG washers and dryers. The condo-style apartments include an additional den, perfect for an office or additional bedroom and select units include a built-in bar. Resident amenities include a fully-equipped gym, package concierge, and lush outdoor lounge area with heated swimming pool.
The boutique asset is prominently located along Crescent Heights Boulevard, at the gateway of the world famous Sunset Strip in the heart of West Hollywood, offering easy access to a thriving employment hub, world- class shopping and dining, and convenient access to the entire Greater Los Angeles area. From renowned movie theaters and comedy clubs to Hollywood’s most exclusive nightclubs and timeless hotspots—including the nearby Chateau Marmont with its old Hollywood glamour—everything is only minutes away. Plenty of everyday conveniences such as banks, fitness studios, grocery stores, homegoods stores, and several major coffee chains are right at hand, too. Within walking distance are popular shopping, dining, and entertainment sites such as Trader Joes, Laugh Factory, CVS, Hyde Sunset, Laurel Hardware, Connie & Ted’s, and much more.
The current owners have completed an extensive renovation and renewal program on 22 of the 24 units, which positions the property as one of the most exclusive, boutique-luxury properties in all of Los Angeles. Contractors spared no expense in order to ensure that Element WeHo met stringent luxury standards. The renewal program included interior and exterior wall sound-proofing, all new doors, windows, and sliders, in-unit washer/dryer added, recessed LED lighting, high-end designer plumbing fixtures, closet built-outs, custom cabinetry and stone slab countertops and backsplash. Additional upside may be unlocked by the eventual turn, upgrade, and re-let of the remaining “classic” two units.
1 INVESTMENT SUMMARY Property Name: Element WeHo Address: 1425 North Crescent Heights Blvd City, State Zip: West Hollywood, CA 90046 Price: $22,600,000 Number of Units: 24 Net Rentable SF: 27,183 Average Square Feet: 1,133 Number of Stories: 3 Number of Buildings: 1 Year Built/Renovated: 1959/2018 Parcel Size (Acres): 0.33 acre Density: 72.7 Units per Acre APN No.: 5554-007-003
INTEREST OFFERED 100-percent fee simple interest in Element WeHo, a 24-unit apartment community located at 1425 N Crescent Heights, West Hollywood, California 90046. APN:5554-007-003
EXISTING DEBT The property is being offered free and clear of any debt.
PROPERTY TOURS All property tours must be coordinated through the listing team. Prospective Purchasers are encouraged to visit the subject property prior to submitting offers. Please do not contact the on-site management or staff without prior approval.
2 INVESTMENT HIGHLIGHTS ULTRA HIGH END APARTMENTS Featuring one and two-bedroom condo-style apartments most with additional den or home space. Each elegant residence features an open concept design with hardwood floors and high-end finishes including Calacatta quartz-finished kitchens with chef-quality Viking appliances, walk-in bedroom closets, oversized soaking tubs, dedicated wine and beverage refrigerators, and full-sized washer dryers.
3 UNBEATABLE LOCATION IN WEST HOLLYWOOD | WALKSCORE 92: The WalkScore of 92 means that daily errands do not require a car. Residents appreciate this excellent location with immediate proximity to the World- Famous Sunset Strip featuring renowned music and nightlife, world-class shopping, exquisite food and drink, and superb health and wellness facilities. Famous locations include the House of Blues, Laugh Factory, The London West Hollywood, Andaz, and Chateau Marmont. Less than one block from Element WeHo is 8000 Sunset featuring upscales tenants such as CVS, Trader Joes, Wokcano, CB2, and AMC Theaters.
PROXIMITY TO LOS ANGELES JOB HUBS: Residents benefit from the property’s central location near major employment centers locally in West Hollywood and the Sunset Strip as well as Hollywood, Downtown Los Angeles, Century City, and Culver City. West Hollywood is home to numerous entertainment groups such as CityGrid Media, InterActive Corp, 10AK, and the Oprah Winfrey Network.
4 RECENTLY COMPLETED RENOVATION AND RENEWAL EXCELLENT AMENITY PACKAGE Luxury finishesadded during the renovation and renewal program to 22 Element WeHo features a fully equipped, on-site fitness center (as well as of the 24 apartments include interior and exterior wall sound-proofing, walking distance to several world-class fitness studios), garage parking, package all new doors, windows, and sliders, in-unit washer/dryer added, recessed concierge service, outdoor courtyard with sun chairs, swimming pool, and mural LED lighting, high-end designer plumbing fixtures, closet built-outs, art by renown artists, Gabe Gault and Sara Sandoval. custom cabinetry and stone slab countertops and backsplash. The two remaining “classic” style units offer the investor additional upside by capturing the $5,000± monthly difference in rent possible by renovating these units upon turn and re-letting.
5 SUPERB DEMOGRAPHICS The City of West Hollywood is home to a very wealthy and educated demographic. Average household income within the city is $108,199 (LA County is $75,972) and more than 60% of the city’s residents have attained an Associate Degree or higher (LA County is just 36%). Median home prices in the city (ZIP 90046) are a staggering $1,825,000 (LA County is $411,640). Given the high cost of home ownership, residents are drawn to Element WeHo by its central location, proximity to multiple entertainment venues, and its affordability when compared to home ownership. The affordability gap to home ownership for West Hollywood is more than 220%.
6 LOCATION & MARKET Crescent Heights Blvd MOS#362124 N
Kirkwood Dr Franklin Ave
The Griddle Cafe The Den of Hollywood DGA Theater Complex Hollywood Blvd Chateau Marmont Pinches Tacos Chateau Hanara Selma Ave Sunset Plaza Cafe Trocadero Le Petit Four Mel’s Drive In Chin Chin W Sunset Blvd Sunset Tower Hotel N Doheny Dr Aroma Sunset Bar and Grill Wallace Rdg Sam Ash Music The Pikey The Laugh Factory Elderberries Cafe CB2
Sherry’s Restaurant State Social House N Orange Grrove Ave Fountain Ave N Harper Ave The Roxy Theater Jitlada
Rainbow Bar & Grill Eveleigh Havenhurst Dr Katana Robata Mondrian Lexington Ave The Comedy Store
Saddle Ranch Chop Shop Carney’s N Laurel Ave N Fairfax Ave
Tesse N Hayworth Ave N Gardner St Holloway Dr WEST HOLLYWOOD UV2 Rook & Reilly’s Irish Pub Pearl’s Rooftop Whiskey A Go Go Romaine St Viper Room Sunset Blvd
N Kings Rd Willoughby Ave N Orange Dr
Elevado Ave Waring Ave N Ogden Dr
N Martel Ave
N Sierra Dr Sierra N N La Brea Ave Melrose Ave N Sycamore Ave
NArden Dr
N Palm Dr N Doheny Dr
Huntley Dr Clinton St N Robertson Blvd
N West Knoll Dr Rosewood Ave N Alta Vista Blvd
N Almont Dr Park Way Oakwood Ave N Formosa Ave N Fuller Ave N Sierra Bonita Ave N La Jolla Ave Beverly Blvd N Vista St N Mansfield Ave
N La Cienega Blvd Beverly Blvd S San Vicente Blvd POINTS OF INTEREST
W 1st St W 3rd St W 1st St
7 N Orlando Ave
Burton Way
Blackburn Ave S Orange Dr 1:23,300 W 4th St W 2nd St 0.3 mi 0 Colgate Ave
Drexel Ave Fairfax Ave
Clifton Way S N Doheny Dr WEST HOLLYWOOD
MOS#362124 HeightsCrescent Blvd The city of West Hollywood, known colloquially as WeHo, is a trendy area known for its high-energy nightlife. The famous Sunset Strip N features the Chateau Marmont, a trendy celebrity hideaway, plus comedy clubs and live music venues like the legendary Whiskey a Go Go, along with the area’s most buzzworthy restaurants, clubs, and shops. West Hollywood is known for its extreme density and walkable street grid. Kirkwood Dr Franklin Ave
The Griddle Cafe From SoHo House to Chateau Marmont, Sunset Boulevard offers plenty of ways to play, relax and blow off steam. People from around the world The Den of Hollywood DGA Theater Complex Hollywood Blvd Chateau Marmont flock here to bask in the inimitable character of the city. The hub of entertainment, dining and nightlife is centered on Sunset and Santa Monica Pinches Tacos Chateau Hanara Boulevards, with its Avenues of art & design along Melrose, Beverly, and La Cienega. West Hollywood is known for its high concentration of high Selma Ave Sunset Plaza Cafe Trocadero profile retail and entertainment destinations, making it truly the place to see and be seen in Southern California. West Hollywood is famous for its Le Petit Four Mel’s Drive In Chin Chin W Sunset Blvd population of both the radical and refined, making it the ideal location for both retail and multi-family housing. Sunset Tower Hotel N Doheny Dr Aroma Sunset Bar and Grill Wallace Rdg Sam Ash Music The Pikey The Laugh Factory Elderberries Cafe CB2
Sherry’s Restaurant State Social House N Orange Grrove Ave Fountain Ave N Harper Ave The Roxy Theater Jitlada
Rainbow Bar & Grill Eveleigh Havenhurst Dr Katana Robata Mondrian Lexington Ave The Comedy Store
Saddle Ranch Chop Shop Carney’s N Laurel Ave N Fairfax Ave
Tesse N Hayworth Ave N Gardner St Holloway Dr WEST HOLLYWOOD UV2 Rook & Reilly’s Irish Pub Pearl’s Rooftop Whiskey A Go Go Romaine St Viper Room Sunset Blvd
N Kings Rd Willoughby Ave N Orange Dr
Elevado Ave Waring Ave N Ogden Dr
N Martel Ave
N Sierra Dr Sierra N N La Brea Ave Melrose Ave N Sycamore Ave
NArden Dr
N Palm Dr N Doheny Dr
Huntley Dr Clinton St N Robertson Blvd
N West Knoll Dr Rosewood Ave N Alta Vista Blvd
N Almont Dr Park Way Oakwood Ave N Formosa Ave N Fuller Ave N Sierra Bonita Ave N La Jolla Ave Beverly Blvd N Vista St N Mansfield Ave
N La Cienega Blvd
S San Vicente Blvd Beverly Blvd
W 1st St W 3rd St W 1st St
N Orlando Ave 8
Burton Way
Blackburn Ave S Orange Dr 1:23,300 W 4th St W 2nd St 0.3 mi 0 Colgate Ave
Drexel Ave Fairfax Ave
Clifton Way S N Doheny Dr SUNSET STRIP | RETAIL AND CULTURAL MECCA Element WeHo is located immediately south of the Sunset Strip, a 1.5 mile length of Sunset Boulevard stretching from Crescent Heights Boulevard west to Sierra Drive in Beverly Hills, well-known as a bustling retail, entertainment, services, and dining destination. The Sunset Strip is a world-famous cultural landmark, setting trends in music, hotels, dining, and shopping. The stretch of road is lined with an array of world-class hotels, nightclubs, restaurants, shops, and spas. From the heights of swank hotel rooftops like the Mondrian’s SkyBar and the Tower Bar at Sunset Tower Hotel, to the glam-grunge of rock clubs like The Viper Room and Whisky a Go Go, there’s a setting to suit your style and mood. In addition to venues that showcase artists ranging from indie singer/ songwriters to major-label headliners, there are iconic comedy clubs such as The Laugh Factory and the Comedy Store. Or head to The Roxy—where Rocky Horror Picture Show premiered in 1974—for live music in an intimate, 500-capacity venue
9 CENTRAL TO ALL LOS ANGELES AMENITIES
Sunset Strip 0.1 miles Hollywood Freeway 2.7 miles
Pacific Design Center 0.8 miles Universal Studios 3.3 miles
Melrose District 0.8 miles Century City 3.3 miles
Cedar Sinai Medical Center 1.3 miles UCLA 4.3 miles
Runyon Canyon Park 1.8 miles Griffith Park 4.6 miles
Hollywood 2.2 miles Downtown Los Angeles 7.5 miles
Metro Redline Station 2.2 miles Dodger Stadium 7.9 miles
Beverly Hills 2.3 miles Santa Monica Beach 9.2 miles
Miracle Mile 2.5 miles LAX 10.5 miles
10 EXCELLENT DEMOGRAPHIC INDICATORS
WEST HOLLYWOOD SNAPSHOT BY THE NUMBERS
POPULATION TOTAL HOUSEHOLDS AVERAGE MARKET RENT 37,572 25,148 $3,004 (MAR 2019)
AVERAGE ANNUAL RENT GROWTH: AVERAGE ANNUAL OCCUPANCY 7.4% 96.4% (LAST 4 YEARS) (LAST 4 YEARS)
AFFORDABILITY GAP AVERAGE HOUSEHOLD INCOME MEDIAN HOME PRICES 220% $108,199 $1,825,000 (FEB. 2019 | ZIP 90046)
11 HIGH BARRIER TO ENTRY DRIVE RENTS & OCCUPANCY
Almost half of all Southern California households are renters. As a result of steady job growth, many Millennials are forming new households, but they lack the resources to purchase, given stringent mortgage criteria, pervasive student loan debt, and high prices (the median home value for ZIP 90046 is $1.8 million).
Los Angeles County has seen a consistent supply of apartments delivered with no noticeable impact on occupancy or stifling rent growth. The Greater Los Angeles market grew by 49,135 units since 2010, according to AxioMetrics (net deliveries). During that time, occupancy has averaged 95.40%. Annual rent growth has averaged 3.4% despite the delivery of 5,460 units averaged annually.
Investors in the Greater Los Angeles area benefit from strong anti-growth sentiment throughout the Southland. Many LA County cities, including Los Angeles, have passed anti-development measures or enacted moratoriums on development in recent years.
12 EXCLUSIVELY LISTED BY
DEAN ZANDER CHRIS TRESP Executive Vice President Senior Associate +1.310.550.2599 +1.310.228.2122 [email protected] [email protected]
FINANCING CONTACT
BRANDON D. SMITH +1.310.550.2532 [email protected]
WWW.ELEMENTWEHO24CBRE.COM