68 Luxury Residential Units Condo Mapped (Separate APNs) Delivered Vacant: Units Can Be Immediately Leased or Sold MALIBU CALIFORNIA For more information, please visit: 1 www.MalibuCBRE.com TABLE OF CONTENTS EXECUTIVE LAURIE LUSTIG-BOWER P. 10 SUMMARY Lic. 00979360 +1 310 550 2556 [email protected] PROPERTY KADIE PRESLEY WILSON P. 16 DESCRIPTION Lic. 01476551 +1 310 550 2575 [email protected] MARKET OVERVIEW REBECCA SHUM P. 45 +852 9099 9884 [email protected] AREA P. 54 OVERVIEW 2 Malibu Los Angeles Santa Monica Los Angeles International Airport PACIFIC OCEAN 3 4 For Illustration Only 5 6 7 8 9 EXECUTIVE SUMMARY 10 CBRE, Inc., as exclusive advisor, is pleased to present for sale a newly renovated 68-unit luxury residential community in the world-famous, exclusive beach community of Malibu, California. Cavalleri Malibu is situated on 10 lush acres of fee simple land. Units are vacant and have been condominium mapped so an investor could immediately execute a condominium for-sale program, or lease and operate the property as a luxury rental community. Amenities include concierge services, a 50’ swimming pool with hot tub and cabañas, two tennis courts, an entertainment pavilion with outdoor dining, BBQ and fireplace, a fitness center, and a large dog park. The Cavalleri community is located along the beautiful slopes of Malibu overlooking the Point Dume Nature Preserve, just over 17 miles west of Santa Monica. All units enjoy the abundant hillside landscape and the gorgeous Malibu sunsets. Some units boast blue-water ocean views. Under this elegant veil of privacy, future residents can soak in the natural beauty of Malibu while enjoying a vibrant mix of destination restaurants, retailers and lifestyle amenities. With high barriers to entry and no immediate multifamily development of scale planned in the Malibu submarket, Cavalleri provides an investor with a truly unique opportunity to own a rare and beautiful piece of real estate in an exceptional beach locale. Cavalleri offers investors strong fundamentals for long term value appreciation given its scarcity and near irreplaceability in the market. Price: UNPRICED 11 OFFERING HIGHLIGHTS A Luxury Community with Resort-Like Amenities Residences boast large floorplans with ample private outdoor spaces Malibu is a popular second home location for Beverly Hills and Hollywood elite residents Cavalleri is mere minutes to California’s most desirable beaches and major employment hubs Luxury Homes Built to High-End Condominium Standards at a Relative Discount Cavalleri is the only existing community of scale in Malibu - only eight multifamily units have been delivered in Malibu over the last 15 years 12 12 INVESTMENT HIGHLIGHTS Large Floor Plans and Premium Interiors Complement a Resort- Like Highly Amenitized Experience: With thoughtfully upgraded interior design by Edmonds + Lee Architects, Cavalleri offers a lifestyle experience and quality level akin to that of Malibu’s multi- million dollar homes or the finest condominium product in the Westside. With views of the Pacific Ocean and the Santa Monica Mountains, the Property offers seven distinct floor plans averaging 1,985 square feet. The extensively renovated two-bedroom, three- bedroom, and penthouse loft units are true single-family home replacements, offer lock-and-go convenience, and appeal to the affluent Malibu demographics. With a hospitality ambiance, Cavalleri offers a recently upgraded 52- foot pool and spa, a fitness center, an outdoor dining pavilion, two tennis courts, a dog park, Iconic Malibu Prestige with Flexible Exit Strategy: Cavalleri’s walking trails, private storage, and ample garage parking. Malibu prestige allows investors the exceptional turnkey opportunity to operate the asset as either Malibu’s premier rental property or sell the condominiums, allowing a new owner to capitalize on the luxury for-sale demand and very limited near-term supply of condominiums at this price point in the market. Current ownership has already received condominium offer reservations in the range of $1M-$2.2M despite no active sales and marketing program, ongoing site construction, and several of the Properties most appealing amenities still under renovation. These reservations maybe cancelled by a new owner. With potential to be the premier rental property in Malibu, Cavalleri’s ultra luxury finishes and enticing amenity base will garner rents significantly higher than nearby offerings. The Property’s unveiling in 2019 will substantially enhance what is already an unbeatable experience in Malibu 13 housing. The best of Cavalleri is yet to come. 13 INVESTMENT HIGHLIGHTS Exceptional Luxury Homes at a Relative Discount Appeal to a Diverse Audience: Cavalleri offers a discount to comparable rental properties in Santa Monica and comparable ocean view assets, which are 1.9x and 2.5x higher in rent on a PSF basis, respectively. Cavalleri offers a tremendous discount to nearby homes as the median list price is $3.5M in Malibu and $8.8M in Point Dume, as of August 2017. Given its attractive price point, strong amenity base, and lock-and-go convenience, Cavalleri has drawn demand from surrounding submarkets such as Beverly Hills, Century City, Hollywood, Calabasas, Santa Monica, Pacific Palisades, as well as second-home buyers seeking an escape from the desert or snow. The Only Community of Scale in Malibu: Cavalleri is an unrivaled trophy acquisition opportunity uniquely positioned in a world-famous center of wealth and celebrity appeal with virtually no competition. Cavalleri is the only existing community of scale in Malibu with considerable street presence. Only eight multifamily units have been delivered in Malibu over the last 15 years. Cavalleri offers the rare opportunity to own irreplaceable turnkey real estate with premier ocean views on the Westside. Cavalleri will continue to stand alone as the only institutional- quality asset in Malibu, as well as the only product available in the ultra-luxury space for single family homes or new condominiums. 14 INVESTMENT HIGHLIGHTS Supply Constrained Market with Extremely High A True World-Class Destination: Cavalleri is the one Barriers to Entry: Due to the lack of available land, premier ocean view offerings along the coast, which high land costs, and a rigid entitlement process boasts the best of both worlds: minutes from two of with the coastal commission, trophy development California’s most desirable beaches, Point Dume and and investment opportunities along the Westside Zuma Beach, and convenient access to the area’s coastline are few and far between. Other than extensive amenity base and employment hubs. The commercial areas, development along the Pacific Property is 10 minutes to Pepperdine University and Coast Highway is comprised of single- and multifamily 12 minutes to the Malibu Country Mart. Cavalleri housing, mostly of low-density projects with five is strategically located just off scenic Pacific Coast units or less. Cavalleri remains the only amenity- Highway (Hwy 1), and residents can access the 101 rich, large scale, high density multifamily project Corridor in less than 20 minutes. The Property provides in Malibu and has been completely renovated to access to major business districts in Santa Monica (24 further enhance its desirability. minutes), Brentwood (30 minutes), Westwood (30 minutes), and Century City (35 minutes). 15 PROPERTY DESCRIPTION 16 17 PROPERTY OVERVIEW 6487 and 6489 Cavalleri Road, PROPERTY ADDRESS Malibu, CA 90265 Two phases, 1992 and 1994; YEAR BUILT Redeveloped 2018 TOTAL UNITS 68 AVERAGE UNIT SIZE (SF) 1,985 BUILDING TOTAL NET SF 134,996 SITE SIZE (ACRES) 10.07 DENSITY (DU/ACRE) 6.75 STORIES Four PARKING SPACES 196 ARCHITECTURE Edmonds + Lee Architects LANDSCAPE DESIGN Pamela Burton & Company DEVELOPER Pacific Eagle 18 PHYSICAL SUMMARY PROPERTY NAME Cavalleri PROPERTY ADDRESS 6487 and 6489 Cavalleri Road CITY Malibu, CA 90265 COUNTY Los Angeles County, CA APN 4467-020-018 (Parcel C) and 4467-020-026 to 057 (Parcel A) and 4467-020-058 to 091 (Parcel B) inclusive YEAR BUILT Two phases, 1992 and 1994, renovated 2018 SITE SIZE (ACRES) 10.068 UNITS 68 DENSITY (DU/ACRE) 6.75 RSF 134,996 AVERAGE RSF 1,985 BUILDINGS Four STORIES Four CONSTRUCTION TYPE Type V Over Podium FOUNDATION Concrete Spread Footing ROOF Sloped Clay Tile / Flat Bur EXTERIOR WALL Stucco/ Wood Trim INTERIOR WALL Textured Drywall PLUMBING Copper ELECTRICAL Copper SMOKE DETECTORS Hard-Wired with Battery Back-Up WATER HEATER Four Boilers, 115-Gallons Capacity WINDOWS Vinyl Framed Dual Pane On-Site Waste Water New HVAC, Nest controls, Rooftop Condensers, and In-Unit Fan Coil Treatment System Units CEILING HEIGHTS 8’ - 17’ DOORS Flat Wood Interior Doors with Frosted Glass STAIRS Exit Stairs - Precast Concrete Stair Treads, Steel Structure And Risers Interior Unit Stairs - Wood Framed PATIO/BALCONY All Units MAIL BOXES Two Kiosk Locations FIRE PROTECTION Partial Wet System - at Protected Courtyard Window Openings Only GAS SoCal Gas ELECTRICITY Southern California Edison 19 WATER HEATER Gas SEWER Septic UNIT MIX SUMMARY Type Description Total Units % Total Sq. Ft. 2x2 Residence A 4 5.90% 1,577 2x3 Residence A - Garden 4 5.90% 1,577 2x4 Residence A - Penthouse 4 5.90% 1,884 2x2.5 Residence B 4 5.90% 1,828 2x2 Residence C 12 17.60% 1,880 3x3.5 Residence D 4 5.90% 1,981 3x3 Residence E 4 5.90% 2,057 3x3 Residence E - Garden 4 5.90% 2,057 3x3 Residence E - North 2 2.90% 2,057 3x3 Residence E - North Garden 2 2.90% 2,232 3x3 Residence E - North Penthouse 2 2.90%