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UNIT APARTMENT OFFERING :: SANTA MONICA, CA -
28 129 SAN VICENTE BOULEVARD
SANTA MONICA, CA 90402 All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.
Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent 129 SAN VICENTE BOULEVARD professionals selected by such party.
All financial data should be verified by the party including by obtaining and reading applicable documents and SANTA MONICA, CA 90402 reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. Chase Simonton (310) 774-3866 office All data and assumptions regarding financial performance, including that used for financial modeling purposes, (310) 383-5927 cell may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be [email protected] provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties DRE: 01766871 must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or Jason Flashman tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding (310) 774-3787 direct the condition of the property and whether the property complies with applicable governmental requirements [email protected] should be discussed by the party with appropriate engineers, architects, contractors, other consultants and DRE: 01841976 governmental agencies. All properties and services are marketed by KW Commercial in compliance with all applicable fair housing and equal opportunity laws.
BROKER OF RECORD 2701 Ocean Park Blvd Suite 140 Santa Monica, CA 90405 DRE: 014990100 EXECUTIVE SUMMARY SUMMARY
ADDRESS 129 San Vicente Boulevard
CITY STATE Santa Monica, CA
UNITS 28
YEAR BUILT 1949
GROSS SF 30,140
LAND SF 47,262
PARCEL # 4293-002-051
ZONING SMR2*
28- UNIT APARTMENT OFFERING :: SANTA MONICA, CA 129 SAN VICENTE BOULEVARD
SANTA MONICA, CA 90402
129 San Vicente Blvd is a 4-building trophy asset sitting on a massive 47,262 SF lot overlooking the Pacific Ocean. This prime Santa Monica location, North of Wilshire - North of Montana, is second to none when it comes to high-end commercial real estate. The property is 100% vacant allowing a new investor to renovate and create tremendous value both in the aesthetics of the building as well as hand selecting tenants.
The property has a unit mix of mostly 2-bedrooms and two 3+2 penthouse units with balconies on both the upstairs and downstairs floors with ocean views. Market rents for 2+1 units in this location range from $4,300 - $5,200 per month. Due to the property's location of the Northwest end of San Vicente and Ocean Ave, some of the units have Ocean views facing Malibu and the Pacific Palisades. All property tours will be subject to submitting an offer with proof of funds. Please call or email the listing agents for more information.
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28- UNIT APARTMENT OFFERING :: SANTA MONICA, CA 5 Downtown / 3rd Street Santa Monica Place
• Abercrombie • Athleta • Nordstrom • Arclight • Adidas • Sugarfish • Boss Store • Bloomingdales • Barneys • The Misfit • Coach • Louis Vuitton • Bloomingdales • Bruxie • Cheesecake Factory • Tesla • Coach • Café Bella • True Food Kitchen • Peloton • Apple • Equinox • All Saints • Rolex
Santa Monica College UCLA Medical Center
Santa Monica Santa Monica Library High School The Huntley
Fairmont Miramar Hotel
28- UNIT APARTMENT OFFERING :: SANTA MONICA, CA 6 FINANCIAL ANALYSIS FINANCIAL ANALYSIS
PRICING THE ASSET OFFERING PRICE $25,000,000 Units 28 PRICE/UNIT $892,857 Year Built 1949 PRICE/SF $829.46 Gross SF 30,140 GRM 15.93 15.93 Lot SF 47,262 CAP RATE 4.10% 4.10% Zoning SMR2* Current Market
MONTHLY RENT SCHEDULE # of Units Type Estimated SF Avg.Current Current Total Market Market Total 4 1+1 $3,600 $14,400 $3,600 $14,400 15 2+1 $4,850 $72,750 $4,850 $72,750 3 2+1.5 $4,950 $14,850 $4,950 $14,850 2 2+1 Townhouse $4,950 $9,900 $4,950 $9,900 2 3+2 Penthouse $6,500 $13,000 $6,500 $13,000 2 0+1 $2,950 $5,900 $2,950 $5,900 28 $130,800 $130,800
ANNUALIZED INCOME Current Market Scheduled Gross Income $1,569,600 $1,569,600 Vacancy Rate Reserve 3% ($47,088) 3% ($47,088) Gross Operating Income $1,522,512 $1,522,512
ANNUALIZED EXPENSES Current Market Real Estate Taxes $312,500 $312,500 Insurance $7,392 $7,392 Utilities $23,800 $23,800 Repairs & Maintenance Est. $30,000 $30,000 Gardening 3% $4,800 $4,800 Management $62,016 $62,016 On-Site Management $16,800 $16,800 Miscellaneous $20,000 $20,000 Reserves $20,000 $20,000 Total Expenses $497,308 $497,308 Expenses/Unit $17,761 $17,761 Expenses/SF $16.50 $16.50 % of SGI 32.66% 32.66%
RETURN Current Market NOI $1,025,204 $1,025,204 Cashflow $1,025,204 $1,025,204 Cash on Cash 4.10% 4.10%
28- UNIT APARTMENT OFFERING :: SANTA MONICA, CA 8 RENT ROLL
Unit # Type Current Rent Market Rent 123-A 2+1.5 $4,950 $4,950 123-B 2+1.5 $4,950 $4,950 125-A 0+1 $2,950 $2,950 125-B 0+1* $2,950 $2,950 125-C 1+1* $3,600 $3,600 125-D 1+1* $3,600 $3,600 129-A 2+1.5* $4,950 $4,950 129-B 2+1 $4,850 $4,850 131-A 2+1 $4,850 $4,850 131-B 2+1* $4,850 $4,850 131-C 2+1 $4,850 $4,850 131-D 2+1* $4,850 $4,850 133-A 2+1 $4,850 $4,850 133-B 2+1 $4,850 $4,850 135-01 2+1 $4,850 $4,850 135-02 3+2 Penthouse $6,500 $6,500 135-03 2+1 $4,850 $4,850 135-04 2+1 $4,850 $4,850 135-05 2+1 Townhouse $4,950 $4,950 135-06 2+1* $4,850 $44,850 135-07 2+1 $4,850 $4,850 135-08 2+1 $4,850 $4,850 135-09 2+1 $4,850 $4,850 135-10 2+1* Townhouse $4,950 $4,950 135-11 1+1* $3,600 $3,600 135-12 1+1* $3,600 $3,600 135-13 2+1* $4,850 $4,850 135-14 3+2 Penthouse $6,500 $6,500 Totals: $130,800 $170,800
28- UNIT APARTMENT OFFERING :: SANTA MONICA, CA 9 MARKET COMPARABLES SALES COMPARABLES
ADDRESS UNITS CAP GRM PRICE/UNIT PRICE/SF
SALES COMPARABLES 423 Ocean Ave 16 4.70% 14.89 $812,500 $726.26
1025 Ocean Ave 20 3.21% 18.35 $1,250,000 $697.21 AVERAGES 3.96% 16.62 $1,031,250 $711.74
ON MARKET 927 Ocean Ave 16 4.50% 16.13 $621,875 $1,263.33 AVERAGES 4.50% 16.13 $621,875 $1,263.33
SUBJECT Subject 28 4.10% 15.93 $892,857 $829.46 129 San Vicente Boulevard
28- UNIT APARTMENT OFFERING :: SANTA MONICA, CA 11 LOCATION OVERVIEW SANTA MONICA CA Santa Monica, California offers more than its beach and year round warm weather. Its proximity to the greater Los Angeles area makes Santa Monica the perfect base for vacationers and business travelers alike.
MAIN STREET: Santa Monica’s Main Street bears the laid back artsy side of Santa Monica, a side of the city that has been characterized by a local, surf vibe for years. Consider the many art galleries and attractions such as the Edgemar Center for the Arts and Mindfulnest, which is one-part art gallery, one-part shop. Main Street is also home to one of the highest concentrations of coffee shops in Santa Monica. A variety of different boutique shops are scattered along Main Street and a weekly farmers market takes place every Sunday.
MID-CITY: The furthest inland neighborhood in Santa Monica is known as Mid-City. This is the arts and entertainment hub of Santa Monica, and is home to a number of the largest entertainment companies. Mid-City also is where you’ll find one of the largest contemporary art collections in Los Angeles, Bergamot, which was formerly a railroad station but now houses a plethora of different art galleries. Some of Santa Monica’s best restaurants are in Mid-City, including Mélisse, which had won two Michelin stars. SHOREBar Giorgo Baldi Caffe Delfini Sunrise Brew
Will Rogers State Beach
The Beach Club
Palisades Beach Club
Annenberg Beach House
NEIGHBORHOODS OCEAN PARK BOULEVARD PICO BOULEVARD SANTA MONICA PIER Running southeast from the Santa Monica Pier is Running parallel to I-10 is perhaps the most The palm tree-lined avenue and views Ocean Park. That local, artsy aesthetic of Main ethnically diverse neighborhood in Santa overlooking the Pacific Ocean make the Santa Street extends here, comprising independent Monica: Pico. The people here can vary, from Monica Pier area and Ocean Avenue one of the coffee shops, boutique stores, and art galleries. college students strolling in and around Santa most iconic locations in Santa Monica. Unique Located just east of Ocean Park is the Santa Monica College to locals popping in and out of hotels, such as The Georgian and The Shore, dot Monica Airport. Not only is this a working airport the clothing boutique shops, record stores, and Ocean Avenue while open-air restaurants and for private jet owners, but it also is the location of art galleries. Saturday mornings on Pico feature a bars, such as Blue Plate Oysterette and The the Museum of Flying, which features numerous smaller, more local farmers market than the Bungalow, line the avenue. Just down from aircraft and artifacts, including a Wright Flyer Downtown Santa Monica Farmers Market; the Ocean Avenue is perhaps Santa Monica’s most replica and World War II planes, and adjacent to Pico iteration usually comprises no more than 30- famous attraction, the Santa Monica Pier. This the Spitfire Grill. 40 local farmers. attraction dates back to 1909, and features a solar-paneled Ferris wheel, amusement park, aquarium, and live concerts and movies during the summer months. SILICON BEACH SYNERGY Silicon Beach is the Westside region of the Los Angeles metropolitan Nevertheless, the headquarters of these established corporate tech area that is home to over 500 tech startup companies, with emphasis on titans tends to be elsewhere, though the region has had startups the coastal strip north of LAX to Santa Monica Mountains, but the term proliferation. Unlike the traditional definition of Silicon Valley (Menlo may be applied loosely or colloquially to refer to most anywhere in the Park to Santa Clara) where the economy is overwhelmingly technology LA Basin. Major technology companies have opened offices in the geared, Silicon Beach, much like San Francisco, tends to have a more region including Google, Yahoo!, YouTube, BuzzFeed, Facebook, diversified economy whereby tourism, finance, and/or other industries Salesforce, AOL, Electronic Arts, Sony, EdgeCast Networks, and also play a major role. MySpace. Additionally, several mobile ventures seeded here like Snapchat and Tinder. In 2012, the region was considered the second- or third-hottest tech hub in the world, according to some metrics. SILICON BEACH HEADQUARTERS
HULU
Hulu's streaming platform features a wide array of popular television shows just hours after they air live. The company occupies a 90,000-square-foot, fully customized space in the mid-city neighborhood of Santa Monica.
Industry: Media | Funding: $683M
THE HONEST COMPANY
The Honest Company provides a line of safe products, ranging from beauty items to cleaning supplies, for the family and for use in the home. The company is also known for giving back, donating products and volunteering on a regular basis.
Industry: E-Commerce | Funding: $303M
Currently in Venice, the world's leading search engine is moving into a huge Playa Vista space once occupied by Howard Hughes’ famous aircraft, the Spruce Goose. It comes as no surprise since Playa Vista once operated solely as Hughes’ private airport.
Industry: Software | Funding: $36.1M SILICON BEACH HEADQUARTERS
YOUTUBE
YouTube is also making use of leftover airport structures from the Hughes era, converting the spaces into offices and creative areas for their YouTube Space facility. Free to anyone with a channel boasting more than 10,000 subscribers, the building is over 40,000-square-feet of sets, screening rooms, editing booths, dressing rooms and more.
Industry: News + Entertainment | Funding: $11.5M
CHOWNOW
ChowNow makes software for the restaurant industry. Providing products such as online ordering systems, management tools and customer insights, ChowNow helps businesses get to know their customers and stay on top of the trends.
Industry: Food | Funding: $43M
SNAP INC.
Snap Inc., the company responsible for Snapchat, is straddling multiple California locations at the moment. The social media company once boasted a spread of offices throughout Venice but has since made moves to a space near the Santa Monica airport.
Industry: Software | Funding: $4.6B
SILICON BEACH SYNERGY Los Angeles 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. While Silicon Beach is sometimes used to loosely describe both LA and Orange County, the tech community specifically refers to the stretch of cities west of LA, spanning from Santa Monica to Venice, often including communities as far as Hermosa Beach. As we see it, Silicon Beach encompasses the following tech hubs: Santa Monica, Venice, Marina del Rey, Playa Vista, Playa del Rey, El Segundo, Manhattan Beach and Hermosa Beach, respectively. DEVELOPMENTS
Frank Gehry-Designed Ocean Avenue Project
At 1333 Ocean Avenue and 1337 Ocean Avenue, existing Queen Anne-style The centerpiece of Gehry's design is the proposed hotel - a 12-story building and Spanish Colonial Revival-style homes are to be rehabilitated and that would contain up to 120 guest rooms with 12,500 square feet of relocated on the property. Worthe intends to incorporate the historic amenities and meeting space. The hotel would rise to an architectural apex of structures into a 42,000-square-foot museum and cultural campus The 130 feet - which is the maximum height allowable under the Downtown Santa project, as currently imagined, calls for the construction of mid-rise and low- Monica Community Plan - capped by a 5,000-square-foot rooftop rise structures, as well as the preservation of two landmarks homes fronting observation deck, which would be accessed by an elevator outside the main Ocean Avenue. The mixed-use development will incorporate rental housing, lobby. a hotel, a conference facility, a museum, a public observation deck, and roughly 35,000 square feet of shops and restaurants lining the ground plane. DEVELOPMENTS
Minor Tweaks to Infill Project in Downtown Six-Story Development Could Replace Mixed-Use Development Planned Behind Santa Santa Monica Downtown Santa Monica Offices Monica Main Library
Developer EDDG, Inc. was scheduled to return this A presentation to the Santa Monica Architectural A parking lot located just north of the Santa Monica week to the Santa Monica Architectural Review Board Review Board has unveiled plans to redevelop an Main Library is the site of the latest apartment building to prevent revised plans for a mixed-use building at office building at 1437 7th Street. planned by prolific developer WS Communities. 1235 5th Street. The proposed five-story building, The project site, located at 1325 6th Street, is slated which would rise from a currently vacant lot, will Mass Equities, a Santa Monica-based real estate for the construction of a six-story building which feature 23 studio, one-, two-, and three-bedroom investment firm, is looking to replace the three-story would feature 64 residential units atop 4,860 square apartments above 1,873 square feet of ground-floor edifice which currently houses its corporate feet of ground-floor retail space and 138 parking retail space and 19 parking spaces in two basement headquarters with a mixed-use apartment building. spaces on four subterranean levels. Plans call for a levels. The project, which is being designed by Plans call for a six-story, 52,456-square-foot structure mix of studio, one-, two-, and three-bedroom floor Malekian & Associates, features a contemporary look which would feature 65 studio, one-, two-, and three- plans, as well as shared amenities including a T- which derives its massing and design from that of bedroom apartments atop 6,350 square feet of shaped courtyard and a rooftop deck. neighboring buildings, setting its fifth floor back from ground-floor retail space and a two-level, 56-car Michael W. Folonis Architects is designing the the street. Plans call for a street-facing facade basement parking garage. podium-type building, which is depicted with a accented by "a randomized arrangement of colored contemporary look and exterior finishes including architectural in-fill panels" in yellow, red, grey, terra Michael W. Folonis Architects is designing the low-rise stucco and concrete. cotta, and inserts of frosted glass. structure, which is described as a "tripartite" plan The project has already been the subject of several featuring solid forms on either side of a linear hearings, including the Santa Monica Planning Renderings depict minor changes to plans initially courtyard at the podium level. Plans also call for Commission and City Council, which has already presented in April 2018, following recommendations common open space at the second, fourth, and roof approved a development agreement for 1325 6th from the Architectural Review Board to create a levels. Street. stronger identity for the building's second, third, and fourth floors. DEMOGRAPHICS
DEMOGRAPHIC DATA 1 Mile 3 Miles 5 Miles
Total Households 18,722 106,822 204,829
Total Population 36,816 216,494 433,935
Population White 28,537 157,925 308,208
Population Black 1,349 8,087 16,773
Population Hispanic 4,196 29,422 64,340
Population Asian 3,771 27,646 63,218
Population Pacific Islander 39 109 244
Population American Indian 15 1,022 1,868
Population Other 1,824 14,242 29,390
Persons Per Household 2 2 2.1
Average Household Income $103,084 $117,601 $120,184
Average House Value $760,246 $930,779 $914,953
Average Age 39.8 38.5 38.3
Average Age Male 39.8 38.3 38
Average Age Female 40.5 38.8 38.6 28- UNIT APARTMENT OFFERING :: SANTA MONICA, CA [email protected] Chase Simonton (310) 774 DRE:01766871 D R A V E L U O B E T N E C I V N A S 9 2 1 2 0 4 0 9 A C , A C I N O M A T N A S - 3866 [email protected] Jason Flashman (310) 774 DRE:01841976 - 3787