CROWNE PLAZA LOS ANGELES HARBOR 601 S Palos Verdes St. San Pedro, CA 90731 Offering Memorandum NON-ENDORSEMENT & DISCLAIMER NOTICE CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. CROWNE PLAZA LOS ANGELES HARBOR 601 S PALOS VERDES ST • SAN PEDRO, CA 90731 EXCLUSIVELY LISTED BY HK & Lee Advisors NELSON LEE HENRI KESSLER STANLEY WANG Senior Associate Broker Licensed Real Estate Salesperson Director Manhattan Office Manhattan Office Los Angeles Office Cell (917) 885-0894 Cell (310) 691-0775 Cell (586) 668-1114 Office (646) 805-1497 Office (646) 805-1427 Office (213) 943-1970 [email protected] [email protected] [email protected] License NY 10301215040 License NY 10401288939 License CA 02055241 OFFICES NATIONWIDE AND THROUGHOUT CANADA WWW.MARCUSMILLICHAP.COM CROWNE PLAZA LOS ANGELES HARBOR 601 S PALOS VERDES ST • SAN PEDRO, CA 90731 TABLE OF CONTENTS EXECUTIVE SUMMARY COMPARABLE PROPERTIES SECTION 1 SECTION 4 Offering Highlights • Property Highlights • Property Details Sales Comparable • Market Competitors 5 Investment Highlights • Floor Plans • Regional Map 34 City Overview • Market Drivers • Local Map • Property Photo NEIGHBORHOOD OPPORTUNITY MARKET OVERVIEW SECTION 5 SECTION 2 Local Attractions • LA Waterfront Redevelopment South Bay - Long Beach Overview • Metro Highlights 21 Downtown Development Project 40 Economy • California • Local Attraction • Demographics FINANCIAL ANALYSIS SECTION 3 28 STR • Historical P&L • 5 Year Pro Forma EXCLUSIVELY LISTED BY: EXECUTIVE SUMMARY / EXECUTIVE / SUMMARY CROWNE PLAZA LOS ANGELES HARBOR 601 S Palos Verdes St, San Pedro, CA 90731 CROWNE PLAZA LOS ANGELES HARBOR 5 CROWNE PLAZA LOS ANGELES HARBOR OFFERING HIGHLIGHTS CROWNE PLAZA LOS ANGELES HARBOR 601 S PALOS VERDES ST • SAN PEDRO, CA 90731 OFFERING PRICE $40,000,000 EXECUTIVE SUMMARY VITAL DATA / / EXECUTIVE SUMMARY Rooms 244 Price/Key $163,934 Stories 10 Total Square Footage 173,135 SF Site Size 2.05 Acres Year Built/Renovated 1990/2016 Pro Forma Cap Rate 10.86% 6 Y SUMMAR VE EXECUTI / / BOR HAR T PROPERTY HIGHLIGHT • UNIQUE OCEAN VIEW OS ANGELES • 4 MINUTE WALK TO THE OCEAN, ONLY ONE BLOCK FROM PACIFIC OCEAN AND PORT OF LOS ANGELES L • HIGH BARRIER TO ENTRY LOCATION • 30 MINUTES AWAY FROM DOWNTOWN LA, LAX, DISNEYLAND AND OTHER MAJOR LA DESTINATIONS • WITHIN A 5-MILE RADIUS OF LOCAL ATTRACTIONS; POINT FERMIN LIGHTHOUSE, FORT MACARTHUR, CABRILLO MARINE AQUARIUM, PORT OF LOS ANGELES WATERFRONT RED CAR LINE, USS IOWA, AND WATERFRONT PARK • POPULAR LOCAL RESTAURANTS; THE WHALE & ALE AND RAFFAELLO RISTORANTE ARE WITHIN WALKING CROWNE PLAZA DISTANCES • CLOSE PROXIMITY TO SPACEX NEW ROCKET MANUFACTURING FACILITY, ALTA SEA AND SAN PEDRO PUBLIC MARKET 7 CROWNE PLAZA LOS ANGELES HARBOR PROPERTY DETAILS UNIT TYPE Queen Queen 100 S ttanandd a r d 9696 Suites 44 King 144 S ttanandd a r d 109091 Suites 3535 Total Number of Rooms 244 EXECUTIVE SUMMARY PARKING TYPE Guest Parking 268 Enterprise Parking 32 / / EXECUTIVE SUMMARY Total Parking Space 300 MEETING SPACE Total Meeting, Banquet & Outdoor Pool Area 17,000 SF Total Enclosed Meeting Space 9,635 SF Total Meeting Space 25,635 SF 8 Y SUMMAR VE EXECUTI / / BOR HAR OS ANGELES L INVESTMENT HIGHLIGHTS • UNENCUMBERED BY MANAGEMENT • ACCORDING TO APPROVED GOVERNMENT PLAN, $3 BILLION IS TO BE INVESTED IN SAN PEDRO WITHIN THE NEXT 10 YEARS (MAYOR GARCETTI, 2016) CROWNE PLAZA • SAN PEDRO – THE BUSIEST PASSENGER PORT OF CALL ON THE WEST COAST AND COMBINED WITH NEARBY PORT OF LONG BEACH, IT’S THE 9th BUSIEST PORT IN THE WORLD 9 FLOOR PLANS CROWNE PLAZA LOS ANGELES HARBOR 3rd - 4th Floor / / EXECUTIVE SUMMARY 1st Floor 5th - 9th Floors 2nd Floor 10th Floor 10 Regional Map LAX Los Angeles San Pedro Long Beach CROWNE PLAZA LOS ANGELES HARBOR // EXECUTIVE SUMMARY 11 AREA INTRO: SAN PEDRO CROWNE PLAZA LOS ANGELES HARBOR • SAN PEDRO IS TWENTY-TWO (22) MILES FROM DOWNTOWN LOS ANGELES AND HOME TO THE PORT OF LOS ANGELES. THE HARBOR FREEWAY ORIGINATES IN SAN PEDRO LINKING THE CITY TO ALL MAJOR FREEWAYS AND DOWNTOWN LOS ANGELES. THE PORT IS THE LEADING TRADE GATEWAY OF NORTH AMERICA. THE PORT HAS ALWAYS BEEN AN ECONOMIC ENGINE OF SOUTHERN CALIFORNIA AND A MAJOR CONTRIBUTOR TO THE NATIONAL ECONOMY. IT IS THE NINTH-BUSIEST HARBOR IN THE WORLD WITH $280 BILLION OF GOODS FLOWING THROUGH IN ANY GIVEN YEAR. THE PORT MOVED MORE CARGO IN 2017 THAN IN ANY TIME IN THE PORT’S 100-YEAR HISTORY, RACKING UP 9,343,195 TWENTY FOOT EQUIVALENT UNITS (THE 20’ STEEL BOX LOADED ONTO A TRAILER YOU ARE ALWAYS BEHIND OF ON THE FREEWAY.) THREE HIGH-PROFILE PROJECTS WILL BENEFIT THE COMMUNITY FOR YEARS TO COME, AND SERVE AS INCUBATORS FOR OTHER BUSINESSES TO LOCATE HERE. MARKET DRIVERS • SAN PEDRO PUBLIC MARKET (SPPM) EXECUTIVE SUMMARY o THE 150 MILLION DOLLAR REDEVELOPMENT OF THE OLD PORTS O’ CALL VILLAGE DESIGNED BY RAPT; INCLUDING LANDSCAPE ARCHITECTURE BY WORLD RENOWNED HIGH LINE DESIGNER JAMES CORNER; WILL ADD RESTAURANTS, SHOPS, AND PUBLIC SPACES TO IMPROVE THE QUALITY OF LIFE FOR THE LOS ANGELES WATERFRONT COMMUNITIES. / / EXECUTIVE SUMMARY • ALTASEA o GENSLER IS DEVELOPING A 35-ACRE COMPLEX THAT WILL COMBINE MARINE RESEARCH, PUBLIC EDUCATION AND SUSTAINABLE ENERGY. $150 MILLION COMPLEX WILL REDEVELOP EXISTING WATERFRONT WAREHOUSES, REPLACING THEM WITH HIGH-TECH RESEARCH EQUIPMENT THAT WILL BRING VISITING TOURISTS, RESEARCHES, UNIVERSITIES, DEVELOPERS, INVESTORS AND SCHOOL CHILDREN. • SPACEX ROCKET AND VESSELS MANUFACTURING FACILITY o SPACEX WILL BE BUILDING THE BFR AT A NEW 19-ACRE FACILITY ACROSS THE HARBOR WITH 700 EMPLOYEES. NOT ONLY WILL THIS BRING ADDED SERVICES TO THE AREA, IT WILL BRING CONTRACTORS DOING BUSINESS WITH SPACEX TO THE SAN PEDRO AREA. 12 Local Map Y SUMMAR VE EXECUTI / / BOR HAR Crowne Plaza LA Harbor San Pedro Public Market The Ratkovitch Company OS ANGELES L AltaSea 550 Palos Verdes Street 35-acre ocean exploration 375-unit apartment building business incubator campus completing 2020 SpaceX Rocket and Shipbuilding Factory CROWNE PLAZA 13 CROWNE PLAZA LOS ANGELES HARBORPROPERTY // EXECUTIVE PHOTO SUMMARY 14 CROWNE PLAZA LOS ANGELES HARBOR // EXECUTIVE SUMMARY 15 CROWNE PLAZA LOS ANGELES HARBORPROPERTY // EXECUTIVE PHOTO SUMMARY 16 CROWNE PLAZA LOS ANGELES HARBOR // EXECUTIVE SUMMARY 17 CROWNE PLAZA LOS ANGELES HARBOR PROPERTY PHOTO / PROPERTY HIGHLIGHTS / EXECUTIVE SUMMARY • 244 GUEST ROOMS, INCLUDING 39 SUITES OVER 17,000 SQUARE FEET OF FLEXIBLE MEETING & FUNCTION SPACE THAT CAN ACCOMMODATE UP TO 450 PEOPLE • COMPLIMENTARY AMENITIES INCLUDE HIGH SPEED INTERNET ACCESS, REFRIGERATORS IN EVERY GUEST ROOM AND USE OF THE STATE-OF-THE-ART BUSINESS AND FITNESS CENTER • ON-SITE GUEST LAUNDRY FACILITY AVAILABLE • BLU BAR AND RESTAURANT VALET AND SELF PARKING AVAILABLE • THREE MILES FROM LONG BEACH 18 CROWNE PLAZA LOS ANGELES HARBOR // EXECUTIVE SUMMARY 19 CROWNE PLAZA LOS ANGELES HARBOR // EXECUTIVE SUMMARY PROPERTY PHOTO s 20 NEIGHBORHOOD NEIGHBORHOOD OPPORTUNITY OPPORTUNITY // CROWNE PLAZA LOS ANGELES HARBOR 601 S Palos Verdes St, San Pedro, CA 90731 CROWNE PLAZA LOS ANGELES HARBOR 21 CROWNE PLAZA LOS ANGELES HARBOR LOCAL ATTRACTIONS LOS ANGELES MUSEUM - BATTLESHIP USS IOWA A 5-minute walk away locates The USS Iowa Museum. The museum's main artifact is the USS Iowa (BB-61), lead ship of the Iowa class of battleships. The battleship was originally commissioned in 1943, and served during World War II, the Korean War, and through the Cold War. Daily tours include visits to see the largest guns (16"/50 caliber) on a U.S. Navy ship, officers ward room, President Roosevelt's cabin, armored bridge, missile decks, enlisted berthing, mess decks, helicopter deck, and other areas. The ship is located at the Los Angeles World Cruise Center and has over 2,100 parking spaces available.