A Value-Add Strip Center with Significant Development
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A VALUE-ADD STRIP CENTER WITH SIGNIFICANT DEVELOPMENT POTENTIAL IDEALLY LOCATED JUST FIVE BLOCKS WEST OF THE NEW $4.9 BILLION LOS ANGELES FOOTBALL STADIUM IN INGLEWOOD, CA INVESTMENT ADVISORS 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 TEAM MEMBERS Sean Brandt Ben Brownstein Nicole Cottrell Dana Liu Steven Schechter Austin Sreden BRANDON MICHAELS GROUP SOUTHERN CALIFORNIA'S PREMIER SALES TEAM 16830 Ventura Blvd. Suite 100, Encino, CA 91436 www.marcusmillichap.com TABLE OF CONTENTS 1 2 3 4 PROPERTY OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ANALYSIS EXECUTIVE SUMMARY EXECUTIVE SUMMARY A 9,042 SF VALUE-ADD STRIP CENTER IDEALLY SITUATED ON 17,786 SF OF LAND ZONED C2 IN A TIER 3 TOC WITH SIGNIFICANT DEVELOPMENT POTENTIAL IDEALLY LOCATED JUST HALF A MILE WEST OF THE NEW $4.9 BILLION LOS ANGELES FOOTBALL STADIUM IN THE HIGH GROWTH LOS ANGELES COUNTY SUB-MARKET OF INGLEWOOD, CA The Brandon Michaels Group of Marcus and Millichap has been selected to exclusively market for sale 901-917 South La Brea Avenue in Inglewood, California. 901 South La Brea Avenue is a 9,042 square foot multi-tenant strip center situated on a 17,786 square feet of land zoned C2-1-0 on the NW signalized corner of South La Brea Avenue and East Arbor Vitae Street. The property is ideally located within a tier 3 TOC, allowing for a 70% density bonus upon the re-development of the site. The subject property also features 21 surface parking spaces located within a gated lot, as well as ample unmetered street parking. 901 South La Brea Avenue is a unique opportunity to acquire a value-add strip center with development potential in one of the fastest growing sub-markets nationally. With the new Los Angeles Football Stadium scheduled to open in summer of 2020, this $2.6 billion development will breathe new life into the immediate area and create significant growth. The current rents in the center average $1.22 gross and all leases are short term or month to month, allowing for immediate rental upside. The units are ideal in size, averaging 1,291 square feet. The C2 zoning within the Tier 3 TOC also allows for the potential redevelopment of the site. With tremendous growth occurring in the immediate area, 901 South La Brea’s centralized location within one of the nation’s hottest submarkets creates a multitude of options. 6 MARCUS & MILLICHAP | THE BRANDON MICHAELS GROUP | OFFERING MEMORANDUM | 901 S LA BREA AVE . INGLEWOOD, CA 90301 7 DTLA L.A. STADIUM & ENTERTAINMENT DISTRICT THE FORUM - INGLEWOOD AT HOLLYWOOD PARK A multi-purpose indoor A momentum project on 298 arena acres land S PRAIRIE AVE E ARBOR VITAE ST S LA BREA AVE E HARDY ST 8 LOCATION OVERVIEW Hollywood Park Casino at Inglewood Hollywood Park NFL Stadium at Inglewood The Forum at Inglewood INGLEWOOD, CA IS ONE OF THE HOTTEST SUBMARKETS IN THE COUNTRY WITH A NEW $4.9 BILLION LOS ANGELES FOOTBALL STADIUM SCHEDULED TO OPEN IN SUMMER 2020 PLUS 3,000 NEW RESIDENTIAL UNITS, 620,000 SQUARE FEET OF RETAIL, A 300-ROOM LUXURY HOTEL AND A REVAMPED CASINO 901 South La Brea Avenue is conveniently located on the southwest signalized corner of South La Brea Avenue and East Arbor Vitae Street, just North of South Prairie Avenue. The subject property is ideally located half a mile (five blocks) from the new massive $4.9 billion-dollar Los Angeles Football Stadium (opening in the summer of 2020), The Forum and Hollywood Park Casino. In addition, the new stadium will be joined by a huge mixed-use development that will house more than 3,000 new residential units, 620,000 square feet of retail space, a social hub, 300 room luxury hotels, an artificial lake, and a revamped casino. The 238-acre project where the old Hollywood Park racetrack once stood is a sign of the rapidly growing “hot market” of Inglewood, which is experiencing a regentrification and significant growth projections as a result of billions of dollars of capital being poured into this submarket. The immediate area benefits from a dense immediate population, with over 300,000 people within three miles of the subject property and over 800,000 people within five miles. With an average household income of approximately 73,000, the entire area is expected to benefit and proposed from the new development. Home prices in Inglewood have more than doubled over the last 6 years, and with the new developments in place, the median home price has jumped 37.3 percent in the last two years. The arrival of the new Crenshaw/LAX rail line, which is set to open in 2020, along with the proposed arena for the Los Angeles Clippers and the new development emerging around LAX, could also further inflate home values in the area. W CENTURY BLVD 901 S. La Brea Avenue is located less than 2 miles between the 405 freeway and 105 freeway and is only a 10-minute drive to the Los Angeles International Airport. Major national retailers surrounding the subject property consist of tenants such as Target, Costco, CVS, Dollar Tree, 7/11, Wells Fargo, Michaels, Starbucks, In-N-Out, Autozone, Home Depot and many more. 901 S LA BREA AVE . INGLEWOOD, CA 90301 | OFFERING MEMORANDUM | THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP 9 INVESTMENT HIGHLIGHTS VALUE-ADD STRIP CENTER IN ONE OF POTENTIAL DEVELOPMENT OPPORTUNITY 1 THE HOTTEST SUBMARKETS NATIONALLY 2 • Current rents are significantly below market, averaging • Signalized corner location just 5 blocks west of the new $4.9 $1.22 per square foot gross billion Los Angeles Football Stadium Development • All leases are short term or month to month, allowing for • 17,786 square feet of land zoned C2 immediate rental upside Owner-User Buyer • Tier 3 TOC creates significant density bonus • Lease flexibility creates a unique opportunity for an Owner- • Multitude of potential uses in the fastest growing submarket in user Buyer to occupy a portion of the property for their own use the country • Ideal unit sizes averaging 1,291 square feet • Large demand for alternative uses in this growing sub-market • Excellent visibility and frontage along both South La Brea Avenue and East Arbor Vitae Street • New development in the immediate area creates growth projection and upside W ARBOR VITAE ST S PRARIE AVE S LA BREA AVE SAN DIEGO FWY W CENTURY BLVD L.A. STADIUM & ENTERTAINMENT DISTRICT AT HOLLYWOOD PARK A momentum project on 298 acres land 10 MARCUS & MILLICHAP | THE BRANDON MICHAELS GROUP NEW LOS ANGELES FOOTBALL STADIUM 4 DENSE IMMEDIATE SUBMARKET UNDERGOING 3 DEVELOPMENT WILL REVITALIZE INGLEWOOD SIGNIFICANT GROWTH • $4.9 billion development will include a brand-new state of the art football • Over 800,000 people within five miles stadium that will serve as the home of the Los Angeles Rams and Los Angeles • Average household income of $73,000 Chargers • Home prices have doubled in the last six years in Inglewood, with the • New 238-acre development will include more than 3,000 new residential median home price increasing 37% in the last two years units, 620,000 square feet of retail space, a social hub, 300 room luxury hotels, • Centralized location within proximity to the Interstate 405 and 105 an artificial lake, and a revamped casino Freeways • New residential will consist of primarily apartments and townhouses, with • Easy access to the new Crenshaw/LAX Metro Rail Project two dozen acres of parks and open space and an artificial lake • Less than a mile from Los Angeles International Airport (LAX) • Large, open air shopping district will also feature glassy office buildings and a hotel with rooftop terrace THE FORUM - INGLEWOOD A multi-purpose indoor arena 110 FWY110 L.A. STADIUM & ENTERTAINMENT DISTRICT AT HOLLYWOOD PARK A momentum project on 298 acres land 901 S LA BREA AVE . INGLEWOOD, CA 90301 | OFFERING MEMORANDUM 11 PROPERTY HIGHLIGHTS BUILDING SF 9,042 901 S La Brea Avenue Address Inglewood, CA 90301 LOT SIZE Price $3,395,000 17,786 Price/SF (Building) $375 Price/SF (Land) $191 AVERAGE RENT/SF Building SF 9,042 $1.22 Lot Size 17,786 CURRENT OCCUPANCY Current Occupancy 100% Parking Spaces 21 Surface Parking Spaces 100% Parking Ratio Ratio of 2.32/1,000 SF ZONING Year Built 1940 C2-1-0 APN Number 5089-023-024 Zoning C2-1-0 TOC TOC Tier 3 TIER 3 12 MARCUS & MILLICHAP | THE BRANDON MICHAELS GROUP | OFFERING MEMORANDUM | 901 S LA BREA AVE . INGLEWOOD, CA 90301 28,781 23,479 $6,734,435 Traffic Volume Counts of 28,781 Vehicles at the Businesses in a 5-Mile Radius Consumer Spending of Intersection of S La Brea Ave and E Arbor Vitae St $6,734,435 in a 5-Mile Radius 13 14 PROPERTY DETAILS SUMMARY OF TERMS ADDRESS 901 S La Brea Avenue Interest Offered: Inglewood, CA 90301 100% fee simple interest in a 17,786 SF retail shopping center located at 901 S La Brea Avenue, Inglewood, SITE LOCATION CA 90301. The property is located at the southwest corner of S La Brea Avenue and E Arbor Vitae Street. Terms of the Sale: Property is being offered on a free and clear basis. SQUARE FOOTAGES The total building SF is 9,042 SF, and the total land SF is Property Tours: 17,786 SF. Prospective purchasers are encouraged to visit the site prior to submitting offers. All property tours must TRAFFIC COUNTS be coordinated through the listing broker. The traffic counts at the intersection of S La Brea Avenue and E Arbor Vitae are approximately 28,781 vehicles per day.