BRANDON MICHAELS GROUP
1901 WILSHIRE BLVD
1901 WILSHIRE & 1143 19TH ST | SANTA MONICA, CA 90403
OFFERING MEMORANDUM PRESENTED BY:
BRANDON MICHAELS Senior Managing Director of Investments Senior Director, National Retail Group Tel: (818) 212-2794 Fax: (818) 212-2710 [email protected] License: CA #01434685 1901 WILSHIRE BLVD www.BrandonMichaelsGroup.com
BEN BROWNSTEIN Senior Associate Director, National Retail Group Director, Industrial Properties Group Tel: (818) 212-2812 [email protected] SANTA MONICA License: CA: #02012808 www.BrandonMichaelsGroup.com
FINANCIAL ANALYSIS
COMPARABLES ANALYSIS BRANDON MICHAELS GROUP
OFFICES NATIONWIDE www.marcusmillichap.com 2 3 GLOBAL TOURISM DESTINATION GETTING AROUND
Santa Monica, California offers more than its beach and year-round warm weather. Its proximity to the At 8.3 square miles, Santa Monica is a bicyclist paradise. greater Los Angeles area makes Santa Monica the perfect base for vacationers and business travelers alike. Now that Santa Monica is home to Santa Monica Bike Center, the nation’s largest full-service bike center, • 8.7 million visitors came to Santa Monica last year visitors can live like a local by embracing the eco-friendly lifestyle of this active and progressive community. • 4.2 million visitors come to Santa Monica from outside of the United States annually
• $1.96 billion dollars generated by tourism to our local economy last year
• 13,350 jobs supported by tourism in Santa Monica SHOPPING & DINING
People may think of Santa Monica as a laid-back AFFLUENT NEIGHBORHOOD WHY BUY beachside city, but Santa Monica's shopping and dining options rival cosmopolitan destinations DEMOGRAPHICS IN like Manhattan and nearby Beverly Hills and other shopping spots in LA. That’s because its array ● Median age: 39 of offerings range from one-of-a-kind California SANTA MONICA? cuisine to iconic labels and straight-from-the- Average household income within a 3 mile radius: $123,532 ● runway styles- all within a walkable locale.
Population within a 5 mile radius: 462,567 ●
SIGNIFICANT OPPORTUNITY WEATHER
While other parts of the world may experience brutal Rare opportunity to purchase in a strong rental market. Significant amount of winters and hot humid summers, the Santa Monica movement and turnover in the immediate marketplace, creating an opportunity WALKABILITY community is fortunate to enjoy bright blue skies, stunning for new construction to enter the market and position the submarket for the sunsets, and cool ocean breezes year round. This near- future. Upon completion of surrounding developments and with continuing 1901 Wilshire Boulevard rates at a 89/100 on perfect weather allows an active and relaxing lifestyle improvements to the immediate area, the Santa Monica rental market will walkscore.com, allowing residents, visitors, throughout the entire year. experience significant growth and offer outstanding returns for long term investors. and daytime employees the convenience of accessing retail, restaurants, and more by foot. WILSHIRE 4 5 EXECUTIVE SUMMARY 1901 A RARE OPPORTUNITY TO ACQUIRE A WILSHIRE BOULEVARD PROPERTY WITH SIGNIFICANT GROWTH POTENTIAL IN WILSHIRE WORLD-RENOWNED SANTA MONICA LOCATION BLVD Marcus & Millichap has been selected to exclusively market for sale 1901 Wilshire Blvd & 1143 19th, iconically located at the corner of Wilshire Boulevard and 19th St in the highly sought-after City of Santa Monica. Situated on Wilshire Boulevard, one of Southern California’s busiest arterial thoroughfares, the Properties offer premiere exposure with 70 Feet of frontage along Wilshire Boulevard on a corner Lot.
Santa Monica is among the top luxury destinations in the world, and this irreplaceable location can put an Owner-User or Investor in the heart of one of the most famously known destinations for celebrities, wealthy residents, and tourists alike. The city has become a haven for the rich and famous due to its unique boutiques and trendy nightlife, while placed directly adjacent to the Pacific Ocean. 1901 Wilshire is located 1 mile away from the 3rd Street Promenade, one of the premier shopping and dining destinations on the West Coast.
1901 Wilshire Boulevard offers the unique opportunity to acquire one of the most impressive storefront locations in Southern California. 1901 Wilshire Boulevard is a 1 story ±8,008 square foot storefront retail building, and 1143 19th St is a ±7,200 square foot, 22 spot parking lot directly behind. Coupled by the high-end neighborhood & World Class Location, these properties make for an ideal flagship site for a high-end tenant or an upscale mixed-use development.
There is tremendous potential as current rent in the area has created an affluent community surrounding Santa Monica, making this an ideal time to purchase property along Wilshire Boulevard. Upon the completion of the surrounding developments and continuing improvements to the immediate area, the rental market will experience significant growth and offer outstanding long-term returns for investors. There has been a significant amount 2.1 4,926 89 of movement and turnover within the marketplace, creating an opportunity for new concepts to enter the market and position this submarket for the square miles of walkable hotspots, 4,926 Businesses within a 1901 Wilshire Blvd scores an 89/100 future. With no long-term lease commitments and two month-to-month tenants, this Property offers investors or owner-users countless possibilities restaurants, nightlife, and shopping in 1 square mile of 1901 Wilshire Blvd on Walkscore.com for the future. Santa Monica 6 7 8 9 PROPERTY OVERVIEW
1901 Wilshire Boulevard Property Address 1143 19th Street Santa Monica CA, 90403
Price Request for Offers
Property Type Storefront Retail FRONT
Building SF 8,008
Land SF (Wilshire Blvd Only) 10,497
Land SF (19th St Only) 7,200
Total Land SF 17,697
Year Built 1938
APN's 4276-008-010 | 4276-008-009
Zoning (1901 Wilshire Blvd) MUB SIDE Zoning (1143 19th St) R2
Type of Ownership Fee Simple
3 Parking Spaces in the rear of 1901 Wilshire
Parking 22 Parking Spaces in parking lot located at 1143 19th St
25 Parking Spaces Total
10 11 REAR INVESTMENT HIGHLIGHTS
IRREPLACEABLE WILSHIRE BOULEVARD LOCATION - Located on a highly walkable stretch of Wilshire Boulevard in Santa Monica, Wilshire Boulevard continues to be among the busiest east-west arterial thoroughfares in all of Los Angeles. Wilshire Boulevard extends from the center of Downtown, all the way to the Pacific Ocean. The location boasts designer labels, popular restaurants, and boutiques and is famously known for being a preferred destination of celebrities, wealthy residents, and tourists 1143 19TH STREET alike
TROPHY ASSET- 1901 Wilshire has the potential to be developed into one of the most impressive storefronts on all of Wilshire Boulevard. The asset allows opportunity for a flagship site for an upscale tenant but can also be redeveloped and subdivided into a multiple unit mixed-use domain
WALKABILITY - 1901 Wilshire has a score of 89/100 for walkability and 85/100 for Bike-ability. Iconic retailers and trendy/hip boutiques and restaurants populate Wilshire 1901 Boulevard and it is a popular haven for the rich and famous AERIAL TREMENDOUS GROWTH POTENTIAL- Current rent in the area has created WILSHIRE an affluent community surrounding Santa Monica, making this an ideal time to BLVD purchase property along Wilshire Boulevard. Upon the completion of the surrounding developments and continuing improvements to the immediate area, the rental market will experience significant growth and offer outstanding long-term returns for investors
NEIGHBORHOOD- Major hotspots and destinations in the City of Santa Monica, such as the 3rd Street Promenade, PCH, Santa Monica Pier, and Venice Boardwalk, are all within walking distance. Right in the immediate corridor are tenants such as, Gap, 1901 Citibank, Walgreens, Coldstone Creamery, & Wholefoods WILSHIRE RARE OPPORTUNITY- Extremely rare opportunity to purchase a redevelopment on BLVD Wilshire Boulevard in Santa Monica. The last property of this size that sold on Wilshire this close to the Ocean was July 2016
AFFLUENT SANTA MONICA NEIGHBORHOOD- The demographics of the local Santa Monica Community reflect average household incomes exceeding $100,000. Adjacent communities include, Malibu, Silicon Beach, Pacific Palisades, Venice, Brentwood, & Playa Vista
AREA HOSPITAL- The Properties are located between UCLA Health Center & Providence Saint John’s Hospital 12 13 PROPERTY SUMMARY COMPANY SF % $ $/SF EXPIRATION CITY OF SANTA MONICA House of Billiards* 5,600 70% - - Vacant at COE LAND USE DESIGNATIONS LOCATION Centimeter Upholstery 2,408 30% $2,500 $1.04 M2M 1901 Wilshire Blvd & 1143 19th St, Santa Monica CA 90103 RENT ROLL *House of Billiards is willing to negotiate a sale leaseback at the close of escrow. 1901 SITE WILSHIRE The subject property is located on the corner of Wilshire Boulevard and 19th Street BLVD
SQUARE FOOTAGES The building square footage is approximately 8,008 square 5,600 SF 2,408 SF feet and the total land square footage is 17,617 square feet
FRONTAGE AND ACCESS 70 feet of frontage on Wilshire Boulevard. Access is from Wilshire Place
FLOOR PLAN The above square footage is appoximate. Buyer should verify building measurements. ZONING 1901 Wilshire Blvd - MUB | 1143 19th St - R2
YEAR BUILT The subject property was built in 1938 R2 TRAFFIC COUNTS Intersection of Wilshire Blvd and 19th Street: 32,712 vehicles per day MUB
PARKING The subject property consists of 25 striped parking spaces with 22 located in the parking lot and 3 located directly behind the building PLATPLAT MAP MAP 14 15 SANTA MONICA
16 17 SANTA MONICA TOP ATTRACTIONS The blend of Santa Monica’s natural beauty, award winning dining, incomparable SANTA MONICA PIER hotel collection and famed shopping options, all on one of California’s most iconic stretches of shoreline, creates a truly unforgettable seaside destination. This true Southern California icon was built in 1909 and is one of Santa Monica’s most beloved and well-known landmarks. It is home to an LOCATION amusement park and the Santa Monica Aquarium, in addition to dining options that range from gourmet fare to cotton candy and ice Santa Monica sits perched on the Pacific Ocean at the crossroads of Pacific Coast Highway and California Interstate Highway 10. Set along 3.5 cream cones. glistening miles of coastline, the city is bordered by Malibu and Venice and is easily accessible from Los Angeles International Airport. PACIFIC PARK Pacific Park is a full-service amusement park located on the Pier COASTLINE AND BEACHES with rides and attractions such as the five-story West Coaster roller Broad, glistening beaches stretch for 26 miles along the scenic Santa coaster, the nine-story Pacific Plunge tower ride, and the nine-story Monica Bay, with 3.5 of those miles falling within Santa Monica proper. Pacific Wheel, the only over-water ferris wheel in California. Primary beaches include Santa Monica State Beach and Will Rogers State Beach, both of which are popular for swimming, surfing, running, and beach PACIFIC WHEEL volleyball. Pacific Park’s nine-story Pacific Wheel is the world’s first and only ACCOMODATIONS solarpowered ferris wheel. The ferris wheel’s 160,000 energy efficient LED lights create an 85-foot high computer generated light show for Santa Monica is home to some of the most unique, celebrated hotels in all of Southern California. The city’s incomparable hotel collection is made up nighttime beach-goers to enjoy. It also provides riders with spectacular of 36 hotel properties with more than 3,500 hotel rooms that range from views of the Santa Monica coastline and is a central focal point on the high-style boutique hideaways, to world-famous oceanfront resorts. Santa Monica Pier.
DINING THIRD STREET PROMENADE Santa Monica emerged as an international culinary destination in the 1980s The sprawling Third Street Promenade is the bustling hub of Downtown and has remained in the top echelon of American dining thanks to its many Santa Monica. This pedestrian only, open-air shopping destination is celebrity chefs and the new generation of culinary innovators who continue only two blocks from the city’s popular beaches and is noted for its to invigorate the city’s dining scene. weekly farmers’ market, terrific shopping, street performers, ample dining options, and of course, people watching. SHOPPING Santa Monica’s tempting collection of global retail brands, haute FARMER'S MARKET boutiques and unique localofferings has turned the beachside city into an internationally celebrated shopping destination. From Downtown’s Third Santa Monica offers four weekly farmers’ markets where the city’s Street Promenade and Santa Monica Place, to upscale boutiques along residents and chefs pick up the country’s freshest produce, flowers, the celebrity-filled Montana Avenue and the fun, shopping in Santa Monica meats, cheeses, nuts, fish, and more. Named the best in the country offers something for everyone and truly immerses the visitor in the diverse by Travel + Leisure, the Santa Monica Farmers Market truly sets the character of the city. tone for local dining. 18 19 SANTA MONICA DEMOGRAPHICS
92,478 Total Population of Santa Monica. The median age is 40. $123,322 417,111 $92,110 Average HH income within 3-m radius Daytime Population within 5-m radius Median HH income within 3-m radius 49% 51% EDUCATION MALE FEMALE
76,778 137,734 462,567 Owner Occupied Households Renter Occupied Households Population within a 5-m radius 6.5% 23.9% 38.5% 31.1% within 5-m radius within 5-m radius High School Associates Degree Bachelor’s Degree Grad Degree
BUSINESSES
Santa Monica has an excess of 35,000 businesses. Spanning from Santa Monica to Playa Del Rey, the area has a flourishing hub of innovative companies putting down roots outside of the San Francisco tech epicenter. Known as "Silicon Beach," due to its proximity to surf and sand, the tech community's attraction to the area is partly credited to its proximity to LAX and the diversity of LA’s industries.
TOP EMPLOYERS • UCLA Medical center, Santa Monica • Providence St. John's Health Care • Lionsgate Entertainment Group • City of Santa Monica • RAND Corporation • Universal Music Group • Santa Monica College • Activision Publishing • RetailET Ehitehall Inc.
20 21 COMPARABLES ANALYSIS 22 23 SALES COMPARABLES - LAND SALES COMPARABLES | PRICE/LAND SQUARE FOOT ADDRESS SALES PRICE LAND SQUARE FOOT PRICE/LAND SF ZONING $1,200.00 $1,063.44
$1,000.00 NV 1 1235 5th Street, Santa Monica $5,175,000 7,405 $689.36 (Neighborhood Village) $800.00 $689.36 $677.69 $590.64 $600.00 $533.57 $511.46
$400.00 NV 2 1448 7th Street, Santa Monica $4,000,000 7,497 $533.57 (Neighborhood Village) $200.00
$0.00 1 2 3 4 5 AVERAGE6 TA 3 407 Colorado Avenue, Santa Monica $15,700,000 14,810 $1,063.44 (Transit Adjacent)
LT 4 1427 Lincoln Boulevard, Santa Monica $3,787,500 7,405 $511.46 (Lincoln Transiton)
1 4 2 5 LT 3 5 1626 Lincoln Boulevard, Santa Monica $16,425,000 27,809 $590.64 (Lincoln Transiton)
AVERAGE $9,017,500 12,985 $677.69
24 25 SALES COMPARABLES - RETAIL SALES COMPARABLES | PRICE/BLDG SQUARE FOOT
$1,400.00
$1,159.78 ADDRESS SALES PRICE BLDG SQUARE FOOT PRICE/BLDG SF ZONING $1,200.00
$939.06 $1,000.00 $916.00 $898.05 1231-1233 3rd Street Promenade 1 $30,300,000 30,450 $782.40 SMC3YY $782.40 Santa Monica $800.00
$600.00
$400.00
MUBL $200.00 2 1820 Broadway, Santa Monica $2,862,500 3,125 $916.00 (Mixed-Use Blvd Low)
$0.00 1 2 3 4 AVERAGE5
2822-2840 Santa Monica Blvd 3 $12,350,000 13,752 $898.05 SMC4 Santa Monica 3
4 2
4 1104 Wilshire Blvd, Santa Monica $3,201,000 5,520 $1,159.78 R3, C6
1
AVERAGE $12,178,375 13,212 $939.06
26 27 BRANDON MICHAELS GROUP
1901 WILSHIRE BRANDON MICHAELS BEN BROWNSTEIN BLVD Senior Managing Director of Investments Senior Associate Senior Director, National Retail Group Director, National Retail Group Tel: (818) 212-2794 Director, Industrial Properties Group 1901 WILSHIRE & 1143 19TH ST | SANTA MONICA, CA 90403 Fax: (818) 212-2710 Tel: (818) 212-2812t [email protected] [email protected] License: CA #01434685 License: CA: #02012808 www.BrandonMichaelsGroup.com