OFFERING MEMORANDUM

FOR SALE RARE ±0.46-ACRE COASTAL COMMERCIAL DEVELOPMENT OPPORTUNITY OR 7,520 SF FREESTANDING RETAIL BUILDING FOR INVESTOR OR OWNER/USER

1630 Pacific Coast Highway | Hermosa Beach, CA TABLE OF CONTENTS

I EXECUTIVE SUMMARY A. Opportunity Overview...... 2 B. Property Highlights...... 3

Contact Information II THE OFFERING A. Property Overview...... 5 B. Aerials...... 6 Jonathan Coleman C. Location Maps...... 8 Real Estate West D. Site Plan...... 9 310.546.3441 x222 [email protected] E. Property Photos...... 10 Cal DRE Lic #00707775 F. Assessor’s Parcel Map...... 14 G. Zoning...... 15 Real Estate West 905 Manhattan Beach Boulevard Manhattan Beach, CA 90266 III AREA OVERVIEW David Knowlton, SIOR, CCIM A. Greater Region...... 17 Executive Vice President B. City of Hermosa Beach...... 18 949.468.2307 [email protected] C. Demographics...... 19 Cal DRE Lic #00893394

NAI Capital 1920 Main Street, Suite 100 Irvine, CA 92614

No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. C ooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. NAI Capital CA BRE #01990696 I | EXECUTIVE SUMMARY A | OPPORTUNITY OVERVIEW

Real Estate West & NAI Capital Inc. have been selected to exclusively offer this rare 0.46-acre Commercial Development/Retail Investment Opportunity in Hermosa Beach, . The opportunity allows the development of an unusually large commercial property in this beach community while collecting a stabilized rental income from the current tenant – Jack’s Surfboards – through 11/30/2021. Alternatively, the buyer may retain the existing 7,520 SF freestanding retail building SITE as a continuing leased investment or future owner/ user occupancy. The City’s broadly allowed uses include retail, office, restaurant, hospitality and many services.

1630 PCH | EXECUTIVE SUMMARY | 2 B | PROPERTY HIGHLIGHTS

PROPERTY Prime 0.46-acre commercial land parcel located in the heart of LOCATION HIGHLIGHTS Hermosa Beach; within walking distance of the Hermosa Beach Pier • Hard corner location • Rectangular-shaped site Lease Income: Existing income stream to • Potential 2-street access help support entitlement expenses • Excellent on-site and street parking • Over 200’ of Pacific Coast Highway Investor/Owner/User: Secondary opportunity to maintain frontage the existing 7,520 SF freestanding retail building with • 53,000 Motorists per day the current lessee, or occupy at lease termination

LOCATION International tourist destination; 3,000 feet from the beach; 3.3 miles from the 405 Freeway; 5.0 miles from LAX; Ideal year-round climate; Excellent demographics

DEMOGRAPHICS Outstanding 2017 Estimated Average Household Income

1 Mile 3 Mile 5 Mile $189,123 $156, 475 $125,127

LAND USE DESIGNATION Special Planning Area 8 - the broadest commercial zoning designation in the City of Hermosa Beach

CURRENT USE Leased to Jack’s Surfboards through 11/30/2021

PRICE $7,995,000

1630 PCH | EXECUTIVE SUMMARY | 3 II | THE OFFERING A | PROPERTY OVERVIEW

FEATURES

ADDRESS 1630 Pacific Coast Highway, Hermosa Beach, CA 90254

SITE 20,049 SF (0.46 Acres)

BUILDING 7,520 SF Freestanding Retail Building with Over 120’ of Window Frontage and 204’ of Street Frontage

YEAR BUILT 1958

SITE DIMENSIONS 204’ Frontage x 100’ Depth (Approx.)

SITE Hard Corner Location; Fully Improved; Mostly Flat; Hillside DESCRIPTION Slope Along East Portion of Property

TRAFFIC COUNT 53,000 Motorists Per Day on Pacific Coast Highway

PARKING 16 On Site Parking Plus Street Parking

ZONING Special Planning Area 8 (SPA-8); Allows All Uses Permitted in C-3 Zone

FAR 1.0

APN’S 4185-005-001, 002, 005

UTILITIES/ Electric – On site INFRASTRUCTURE Water - On site Phone - On site Sewer - On site Gas - On site Street – Yes Sidewalk – Yes Curb/gutter - Yes

CURRENT LEASE Property is subject to an existing lease with Jack’s Surfboards which expires on 11/30/2021. Lessee has no options to extend or purchase. Jack’s Surfboards’ Lease Abstract is available subject to a confidentiality agreement.

1630 PCH | THE OFFERING | 5 B | RETAIL TRADE AERIAL

Artesia Blvd

Pacific Coast Hwy 0.5 Mile

Prospect Ave

Valley Dr

SITE Grant Ave

Hermosa Ave

Pier Ave Aviation Blvd

Pacific Ocean

1630 PCH | THE OFFERING | 6 B | AERIAL

W 135th St

Rosecrans Ave 3 Miles 405 Aviation Blvd Aviation Hawthorne Blvd W 147th St Marine Ave

1 Manhattan Beach Blvd Doty Ave Pacific Ave Pacific

Robinson St Redondo Beach Blvd SITE 1 Mile Western Ave Artesia Blvd

Hermosa Ave

W 182nd St Flagler Ln

Pacific Coast Hwy Rindge Ln

Inglewood Ave W 190th St

Prospect Ave

107 Del Amo Blvd 213 Van Ness Ave Van Crenshaw Blvd Crenshaw Earl St Pacific Ocean Torrance Blvd Madrona Ave Madrona

Sepulveda Blvd

1630 PCH | THE OFFERING | 7 C | LOCATION MAPS

Los Angeles 30 Mile Marine Ave 210 405

405 Glendale Pasadena 1 Bradbury Manhattan Beach Blvd 20 Mile

Beverly Hills Alhambra El Monte

Santa Monica 10 Valinda 605 SITE N Peck Ave Inglewood Ave Vail Ave Vail

Huntington Industry Blvd Aviation

Park Hawthorne Blvd Whittier Artesia Blvd

Inglewood 10 Mile Prospect Ave Downey Orange County

Hawthorne Ardmore Ave Fullerton Compton W 182nd St

Redondo Beach Lakewood 5 Hermosa Ave Ripley Ave Flagler Ln Torrance 110 405 Anaheim Pacific Coast Hwy 107 Palos Verdes Estates Long Beach W 190th St

Westminster

Beryl St

Del Amo Blvd Anza Ave

1630 PCH | THE OFFERING | 8 D | SITE PLAN

75’ 15’

Planter

116’

Trash 61’ 17TH STREET

20’

127’

Pylon Sign

PACIFIC COAST HWY

Not to Scale. All measurements are approximate and not guaranteed.

1630 PCH | THE OFFERING | 9 E | PROPERTY PHOTOS

1630 PCH | THE OFFERING | 10 E | PROPERTY PHOTOS

1630 PCH | THE OFFERING | 11 E | PROPERTY PHOTOS

1630 PCH | THE OFFERING | 12 E | PROPERTY PHOTOS

1630 PCH | THE OFFERING | 13 F | ASSESSOR’S PARCEL MAP

1630 PCH | THE OFFERING | 14 G | ZONING OVERVIEW

Special Planning Area 8: Allows all commercial uses as those permitted in the C-3 CONTACT INFORMATION General Commercial zone. This is the broadest commercial zone in Hermosa Beach. Allowed uses include retail, office, restaurants, service & hospitality among many others. City Hall 1315 Valley Drive C-3 General Commercial Zone: Provides opportunities for the full range of office, retail, Hermosa Beach, CA 90254 and service businesses deemed suitable for the city and appropriate for the Pacific Phone: (310) 318-0239 Coast Highway and Aviation Boulevard commercial corridors, including businesses not Web: www.hermosabch.org appropriate for other zones because they attract heavy vehicular traffic or have specific adverse impacts. Planning Division: (310) 318-0242 Building Division: (310) 318-0235 Two sets of standards apply in this specific plan area: first tier and second tier. Compliance Code Enforcement Division: (310) 318-0235 with first tier standards allows the project to proceed with a building permit. If a project goes beyond any of the first tier standards, the procedure for submittal and approval of a precise development plan shall be followed. Developments must be in compliance with second tier standards at all times.

1ST TIER MIN/MAX 2ND TIER MIN/MAX REQUIREMENTS REQUIREMENTS

MAX. HEIGHT 25 Feet 35 Feet

COVERAGE Max. 1.0 F.A.R.* N/A

MAX. SIZE 10,000 SF N/A Gross Floor Area

MIN. LANDSCAPE COVERAGE 5% of lot area 2% of lot area *Gross floor area/lot area ratio (excludes parking structures)

1630 PCH | THE OFFERING | 15 III | AREA OVERVIEW A | REGION OVERVIEW

The Greater Los Angeles Region is the second largest renovation of former office buildings. The Region is home Factors affecting continued growth and economic urban region in the United States and is second only to to over a quarter of all California residents. success in the Los Angeles area include: the New York Metropolitan Area in terms of population Orange County and Los Angeles County are part of and economic output; encompassing five counties in the Los Angeles Metropolitan Area, the inner core of • The area’s economy is diverse with an emphasis , Orange County, Los Angeles County, the Greater Los Angeles Region. Orange County is on aerospace, business, services, entertainment, Riverside County, San Bernardino County and Ventura mostly suburban with no defined urban center. The technology, tourism and trade County. As of the 2010 U.S. Census, the estimated establishment of the tourism industry allowed Orange • The ports of Long Beach and San Pedro provide population by 2015 was 18.7 million. The region has County to become an important economic center. Today deep water shipping access continuously urbanized stretching from Ventura County to Orange County is home to many tourist attractions such • Five international airports provide air freight and the southern border of Orange County. The Los Angeles as Disneyland, California Adventure, Knott’s Berry Farm, passenger service, plus extensive freeway and rail area continues to grow, primarily on the periphery where Discovery Science Center and Bower Museum along with systems new, less expensive, undeveloped areas are being extensive beaches and coastlines. • The Basin is strategically situated for transacting sought. In these areas, populations as well as housing business in two growing trade areas; the Pacific Rim prices continue to explode especially in Riverside and San The explosive growth of the Greater Los Angeles Region and Mexico Bernardino Counties. Growth continues not only outside can be attributed to its climate, the availability of land and the existing urbanized area but also adjacent to existing many booming industries such as oil, automobile, motion development in the central areas. As in virtually all US pictures and aerospace which make it easy for employers core cities, there is now vigorous residential development to attract employees from around the world. in the downtown area with both new buildings and

1630 PCH | AREA OVERVIEW | 17 B | CITY OF HERMOSA BEACH

Hermosa Beach is located in the South Bay region of the greater Los Angeles The wide flat beach makes Hermosa Beach one of the most popular places to area; just 5 miles south of Los Angeles International Airport. It is one of the three play beach volleyball, from professional to amateur. Hermosa Beach is home Beach Cities and is bordered by the other two; Manhattan Beach to the north and to the AVP Hermosa Beach Open tournament and several amateur CBVA Redondo Beach to the south and east. tournaments during the year. The Strand stretches north to Santa Monica and south to Redondo Beach, and is a popular place for walkers, joggers and biking. The city’s beach is popular for sunbathing, beach volleyball, surfing, paddle boarding and bars. The city itself extends only about 15 blocks from east to west Hermosa Beach is within a few minutes commute of many of the largest and and 40 blocks from north to south, with the Pacific Coast Highway running down best known names in corporate America in such fields as aerospace, high the middle. Situated on the Pacific Ocean, Hermosa’s average temperature is tech, industrial, service and financial. And with scores of fashionable boutiques, 70°F (22°C) in the summer and 55°F (13°C) in the winter. It has an average of independent shops, restaurants, and outdoor activities -- all within 1.4 square 325 days of sunshine a year. miles and easy walking distance — Hermosa Beach offers something for everyone.

1630 PCH | AREA OVERVIEW | 18 C | DEMOGRAPHICS OVERVIEW

1 Mile 3 Mile 5 Mile Population 1 Mile 3 Mile 5 Mile Age 2017 Estimated Population 34,505 178,593 418,962 Median Age 37.8 38.5 37.9

2022 Projected Population 35,045 181,106 425,464 Age 19 Years or Less 6,783 39,321 97,307

Age 20 to 64 Years 23,280 114,462 263,660 2017 Male Population 17,583 89,332 206,602 Age 65 Years or Over 4,442 24,810 57,995 2017 Female Population 16,922 89,261 212,360

2017 Total Adult Population 28,722 139,272 321,655 2017 Total population: under 5 years 2,129 6.2% 10,801 6.0% 25,718 6.1%

2017 Total Businesses 2,095 8,863 21,587 2017 Total population: 5 to 9 years 1,864 5.4% 10,320 5.8% 24,900 5.9%

2017 Total population: 10 to 14 years 1,518 4.4% 9,566 5.4% 24,162 5.8%

2017 Total population: 15 to 19 years 1,273 3.7% 8,633 4.8% 22,527 5.4% 1 Mile 3 Mile 5 Mile Income 2017 Total population: 20 to 24 years 1,488 4.3% 8,498 4.8% 22,949 5.5%

2017 Estimated Household Income: Average $189,123 $156,475 $125,127 2017 Total population: 25 to 29 years 3,457 10.0% 14,453 8.1% 33,706 8.0%

2017 Estimated Household Income: Median $131,580 $116,600 $94,964 2017 Total population: 30 to 34 years 3,341 9.7% 14,993 8.4% 33,198 7.9%

2017 Estimated Per Capita Income $85,673 $63,969 $48,478 2017 Total population: 35 to 39 years 3,135 9.1% 14,444 8.1% 31,509 7.5%

2022 Projected Household Income: Average $243,150 $195,561 $155,241 2017 Total population: 40 to 44 years 2,697 7.8% 12,898 7.2% 29,540 7.1%

2022 Projected Household Income: Median $153,641 $134,287 $109,945 2017 Total population: 45 to 49 years 2,651 7.7% 13,730 7.7% 31,403 7.5%

2022 Projected Per Capita Income $112,447 $81,766 $48,478 2017 Total population: 50 to 54 years 2,245 6.5% 12,647 7.1% 29,458 7.0% 2017 Total population: 55 to 59 years 2,230 6.5% 12,070 6.8% 27,691 6.6%

2017 Total population: 60 to 64 years 2,036 5.9% 10.730 6.0% 24,208 5.8% 1 Mile 3 Mile 5 Mile Households 2017 Total population: 65 to 69 years 1,572 4.6% 8,393 4.7% 19,137 4.6% 2017 Estimated Households 15,628 72,940 162,108 2017 Total population: 70 to 74 years 1,163 3.4% 6,245 3.5% 14,154 3.4%

2017 Average Household Size 2.2 2.4 2.6 2017 Total population: 75 to 79 years 694 2.0% 4,185 2.3% 10,028 2.4%

2017 Total population: 80 to 84 years 476 1.4% 2,825 1.6% 6,956 1.7% 2022 Projected Households 16,205 75,665 168,136 2017 Total population: 85 years and over 537 1.6% 3,163 1.8% 7.720 1.8%

1630 PCH | AREA OVERVIEW | 19 FOR SALE | RARE ±0.46-ACRE COASTAL COMMERCIAL DEVELOPMENT OPPORTUNITY OR 7,520 SF FREESTANDING RETAIL BUILDING FOR INVESTOR OR OWNER/USER

Contact Information Jonathan Coleman David Knowlton, SIOR, CCIM Real Estate West Executive Vice President 310.546.3441 x222 949.468.2307 [email protected] [email protected] Cal DRE License #01990696 Cal DRE Lic #00707775 Cal DRE Lic #00893394 800.468.2618 • naicapital.com

NAI Capital Offices Headquarters Valencia Orange County 27451 Tourney Rd., Ste. 200 Encino Valencia, CA 91355 Irvine Palm Desert 16001 Ventura Blvd., Ste. 200 (661) 705-3550 1920 Main St., Ste. 100 75-410 Gerald Ford Dr., Ste. 200 Encino, CA 91436 Irvine, CA 92614 Palm Desert, CA 92211 (818) 905-2400 West Los Angeles (949) 854-6600 (760) 346-1566 11835 Olympic Blvd., Ste. 700E Los Angeles County Los Angeles, CA 90064 (310) 440-8500 Diamond Bar Ontario 21660 E. Copley Dr., Ste. 320 Ventura County 800 N. Haven Dr., Ste. 400 Diamond Bar, CA 91765 Ontario, CA 91764 (909) 348-0600 Oxnard (909) 945-2339 300 Esplanade Dr., Ste. 1660 Pasadena Oxnard, CA 93036 Temecula Valley 225 S. Lake Ave., Ste. 1170 (805) 278-1400 27720 Jefferson Ave., Ste. 330 Pasadena, CA 91101 Temecula, CA 92590 (626) 564-4800 Westlake Village (951) 491-7590 2555 Townsgate Rd., Ste. 320 Torrance Westlake Village, CA 91361 Victorville 970 W. 190th St. Dr., Ste. 100 (805) 446-2400 13911 Park Avenue, Ste. 206 Torrance, CA 90502 Victorville, CA 92392 (310) 532-9080 (760) 780-4200

No warranty, express or implied, is made as to the accuracy of the information contained herein. this information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. NAI Capital CA BRE #01990696