LOS ANGELES, CA 90035 WEST HOLLYWOOD BEVERLY HILLS LOS ANGELES, CA 90035 S LA CIENEGA BLVD BRANDON AN IDEAL OPPORTUNITY FOR AN OWNER-USER BUYER OR MICHAELS INVESTOR TO ACQUIRE A PRIME WESTSIDE LOCATION WITH GROUP SIGNIFICANT GROWTH POTENTIAL 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 www.BrandonMichaelsGroup.com BRANDON MICHAELS GROUP SOUTHERN CALIFORNIA'S PREMIER SALES TEAM 16830 Ventura Blvd. Suite 100, Encino, CA 91436 www.marcusmillichap.com CENTURY CITY BEVERLY HILLS 1 PROPERTY OVERVIEW LOS ANGELES, CA 90035 2 FINANCIAL ANALYSIS 3 COMPARABLE ANALYSIS 4 AREA OVERVIEW S LA CIENEGA BLVD ADJACENT TO CENTURY CITY Century City is a 176-acre (71.2 ha) neighborhood and business district in Los Angeles’ Westside. Outside of Downtown Los Angeles, Century City is one of the metropolitan area’s most prominent employment centers, and its skyscrapers form a distinctive skyline on the Westside. Important to the economy are the Westfield WHY BUY ON Century City shopping center, business towers, and Fox Studios. SOUTH LA CIENEGA AFFLUENT NEIGHBORHOOD DEMOGRAPHICS BLVD Median Age:36 Average Household Income within a 3-mile radius: $74,256 Population within a 5-mile radius: 953,780 SIGNIFICANT OPPORTUNITY Extremely rare opportunity to purchase in a transitioning rental market. Significant amount of movement and turnover in the immediate marketplace, creating an opportunity for new concepts to enter the market and position the submarket for the future. 1633 S LA CIENEGA 1633 LA CIENEGA BOULEVARD WHY BUY ON La Cienega Boulevard is a major north–south arterial road that SOUTH runs between El Segundo Boulevard in Hawthorne, California on the south and the Sunset Strip/Sunset Boulevard in West Hollywood LA CIENEGA to the north. BLVD 5 THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP | OFFERING MEMORANDUM THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP | OFFERING MEMORANDUM PROPERTY OVERVIEW AN IDEAL OPPORTUNITY FOR AN OWNER-USER BUYER OR INVESTOR TO ACQUIRE A PRIME WESTSIDE LOCATION WITH SIGNIFICANT GROWTH POTENTIAL. The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively market for sale 1633 LOS ANGELES, CA 90035 S. La Cienega Boulevard, a 2,121 square foot retail building situated on 3,160 square feet of land zoned LAC2 in Los Angeles, CA. 1633 S. La Cienega Boulevard is well located in the Pico Robertson submarket of Los Angeles, adjacent to Beverly Hills and Culver City just south of the signalized corner of Pico Boulevard and La Cienega Boulevard. This prime West Los Angeles location benefits from a dense and affluent surrounding demographic. 1633 S. La Cienega Boulevard consists of a 2,121 square-foot commercial building which was previously occupied by Cosmos Upholstery, who successfully operated as a modern and contemporary furniture reupholstery in the area for over 50 years. The subject property benefits from excellent frontage with along La Cienega Boulevard and provides unique signage, which creates ideal visibility. Daily traffic counts exceed 50,000 vehicles per day, further adding to the uniqueness of the subject property. The subject property can be delivered vacant at the close of escrow, making this an ideal opportunity for an Owner-User Buyer looking for a prime west side location, or an investor or developer looking to acquire an excellent location with significant growth potential. In addition, there is significant development in the immediate area, with thousands of new residential units coming on-line as well as high end commercial and office space. The growth in the immediate area creates significant upside for this prime location. Located just minutes from Beverly Hills and Century City, 1633 S. La Cienega Boulevard is ideally located in a densely populated, affluent West Los Angeles sub-market with the average household income exceeding $75,000 within a one-mile radius and over 1,000,000 people within a five mile radius. Century City is the most prominent business district in Los Angeles outside of Downtown, and Beverly Hills is an international icon for its concentration of luxury and high-end shops and restaurants. Immediate national and regional retailers surrounding the subject property include Smart and Final, LA Fitness, Panda Express, KFC, Starbucks, 7 Eleven, Chase, Ross Dress for Less, CVS, and many more. THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP | OFFERING MEMORANDUM THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP | OFFERING MEMORANDUM 7 PROPERTY HIGHLIGHTS PROPERTY INFORMATION 1633 S La Cienega Boulevard Address Los Angeles, CA 90035 Beverly Hills Price $1,050,000 BEVERLY HILLS Current Cap Rate 0.65% Pro Forma Cap Rate 6.83% Price/SF (Building) $495 Price/SF (Land) $332 Building SF 2,121 Land SF 3,160 Zoning LAC2 APN Number 4303-028-022 Year Built 1950 Type of Ownership Fee Simple Interest Offered: 100% fee simple interest in a 3,160 SF retail property located at 1633 S La Cienega Boulevard, Los Angeles, CA 90035. Terms of the Sale: Property is being offered on a free and clear basis. Property Tours: Prospective purchasers are encouraged to visit the site prior to submitting offers. All property tours must be coordinated through the listing broker. SUMMARY OF TERMS SUMMARY WEST HOLLYWOOD THE SUNSET STRIP LOS ANGELES, CA 90035 S LA CIENEGA BLVD The Grove HOLLYWOOD PARK LA BREA LOS ANGELES, CA 90035 S LA CIENEGA BLVD THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP | OFFERING MEMORANDUM THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP | OFFERING MEMORANDUM PROPERTY OVERVIEW DOWNTOWN LOS ANGELES INVESTMENT HIGHLIGHTS IRREPLACEABLE WEST LOS ANGELES PICO-ROBERTSON LOCATION Centrally located less than two miles between the world-famous Rodeo Drive of Beverly Hills and Century City, two of the most prominent business districts in Los Angeles. AFFLUENT NEIGHBORHOOD The average household income is $104,000 within a one-mile radius. HIGHLY TRAFFICKED STREET From south of Fairview and from north of Rodeo Road, La Cienega Boulevard is a regular surface street and one of Hollywood's major thoroughfares. Over 50,000 vehicles pass the subject property per day. OWNER-USER OPPORTUNITY The building is currently vacant, creating a unique opportunity for an Owner-User Buyer to occupy a portion or the entire building. SIGNIFICANT DEVELOPMENT IN THE IMMEDIATE AREA Thousands of new residential units and high-end commercial space coming on-line in the immediate and surrounding areas, creating significant growth potential. $104,993 154,323 979,582 Average Household Income Households Within 3-mile Population Within 5-mile Radius Within 1-mile Radius Radius THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP | OFFERING MEMORANDUM THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP | OFFERING MEMORANDUM 11 PROPERTY DETAILS LOCATION 1633 La Cienega Blvd. Los Angeles, CA 90035 SITE The subject property is located near the intersection of S La Cienega Boulevard and Airdrome Street South SQUARE FOOTAGES The total lot size is 3,160 SF. The total building square footage is 2,121 SF CROSS STREETS Intersection of S La Cienega Boulevard and South Airdrome Street YEAR BUILT The property was built in 1950 ZONING Zoning is LAC2 CENTURY CITY BEVERLY HILLS LOS ANGELES, CA 90035 S LA CIENEGA BLVD LOS ANGELES, CA 90035 FINANCIAL ANALYSIS RENT ROLL LEASE PRO FORMA RENT/ PRO FORMA RENT TENANT SF SF % RENT RENT/SF EXPIRATION SF /SF MONTH MC Upholstery 1,200 57% 11/30/20 $2,000.00 $1.67 $3.00 $3,600.00 VACANT 921 43.42% - - - $3.00 $2,763.00 Total 2,121 100% $2,000.00 $6,363.00 PRO FORMA OPERATING DATA INCOME AND EXPENSE CURRENT PRO FORMA PRO FORMA OPERATING EXPENSES* PER YEAR PER SF NNN Charges $24,000 $76,356 Taxes (1.25%) $13,125 $6.19 Scheduled Lease Income - $17,134 Insurance $827 $0.39 Total Income $24,000 $93,490 Utilities $954 $0.45 Vacancy - 5% $4,674.48 Repairs & Maintenance $1,379 $0.65 Expenses $17,134 $17,134 Net Operating Income: $6,866 $71,682 Total $17,134 $8.08/$0.67 *Approximate expenses based on industry averages. 14 THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP | OFFERING MEMORANDUM FINANCIAL ANALYSIS LOS ANGELES, CA 90035 PRICING 8600 W PICO BOULEVARD ADDRESS LOS ANGELES, CA 90035 FINANCIAL ANALYSIS Pricing: $1,050,000 Current Cap Rate: 0.65% Por Forma CAP Rate: 6.83% Price/SF (Building): $495 Price/SF (Land): $332 Building SF: 2,121 Land SF: 3,160 Current NOI: $6,866 *Approximate expenses based on industry averages. THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP | OFFERING MEMORANDUM 15 SALES COMPARABLES LOS ANGELES, CA 90035 # ADDRESS SALE PRICE PRICE/SF PRICE/SF (LAND) BLDG SF LAND SF CAP RATE ZONING COE 1737 S La Cienega Blvd 1 $6,900,000 $764.29 $329.32 9,028 20,952 - - 01/23/2018 Los Angeles, CA 90035 1646 S La Cienega Blvd 2 $1,700,000 $625.92 $325.22 2,716 5,227 - LAC2 10/17/2018 Los Angeles, CA 90035 8815-8823 W Pico Blvd 3 $4,435,000 $789.57 $509.07 5,617 8,712 - C4 12/31/2018 Los Angeles, CA 90035 1754-1756 S Robertson Blvd 4 $1,580,000 $786.46 $315.96 2,009 5,001 - LAC2 05/23/2018 Los Angeles, CA 90035 8535 Venice Blvd 5 $2,750,000 $680.69 $371.36 4,040 7,450 - C2-1LA 06/20/2018 Los Angeles, CA 90034 8551 Venice Blvd 6 $1,650,000 $397.59 $270.56 4,150 6,098 - C2 05/04/2018 Los Angeles, CA 90034 8559 Venice Blvd LAC2-1VL 7 $980,000 $784.00 $394.01 1,250 2,487 - 12/27/2018 Los Angeles, CA 90034 -CPIO AVERAGE (S): $2,856,429 $689.79 $359.36 4,116 7,990 16 THE BRANDON MICHAELS GROUP | MARCUS & MILLICHAP | OFFERING MEMORANDUM SALES COMPARABLES LOS ANGELES, CA 90035 3 4 2 1 5 6 MARKET COMPARABLES 7 1633 S.