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2 0 1 8 P I C O B O U L E V A R DSANTA MONICA, CA 90405
S A N T A M O N I C A D E V E L O P M E N T O P P O R T U N I T Y
2018 P ICO BOULEVARDS A N T A M O N I C A , C A 9 0 4 0 5
WWW.MARCUSMILLICHAP.COM
NON-ENDORSEMENT AND DISCLAIMER NOTICE
NON-ENDORSEMENTSMarcus & Mi l l ichap is not af f i l ia ted with, sponsored by, or endorsed by any commercia l tenant or lessee ident i f ied in th is
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informat ion about th is l is t ing to prospect ive customers.
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DETAILS.
DISCLAIMERTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN
APPRAISAL. This informat ion has been secured f rom sources we bel ieve to be re l iable, but we make no representa t ions or
warrant ies, expressor impl ied, as to the accuracy of the informat ion. References to square footage or age are approximate.
Buyer must ver i fy the informat ion and bears a l l r isk for any inaccuracies. Marcus & Mi l l ichap is a serv ice mark of Marcus &
Mi l l ichap Real Esta te Investment Serv ices, Inc. © 2017 Marcus & Mi l l ichap. A l l r ights reserved.
ACTIVITY ID: ZAB0140245
03
01 EXECUTIVE SUMMARYPAGE 5• OFFERING HIGHLIGHTS• INVESTMENT OVERVIEW / HIGHLIGHTS• PROPERTY PHOTOS• PROPERTY MAP
TABLE OF CONTENTS
04
02 FINANCIAL ANALYSISPAGE 17• FINANCIAL SUMMARY
SOLD COMPARABLESPAGE 21• SOLD COMPARABLES• SOLD COMPARABLES GRAPH
MARKET OVERVIEWPAGE 29• DEMOGRAPHICS• PICO NEIGHBORHOOD PLAN
EXECUTIVESUMMARY
2018 PICO BOULEVARD
2 0 1 8 P I C O B O U L E V A R D | 5
OFFERING H IGHLIGHTS
DEVELOPMENT OPPORTUNITY
OFFERING PRICE
$2,025,000LAND SQUARE FEET
4,500 SFVITAL DATA
Address2018 Pico Boulevard
Santa Monica, CA 90405
Price $2,025,000
Units 2 - Retail and Office
APN 4273-003-004
Zoning NC Neighborhood Commercial
Year Built Approximately 1947
Building Square Feet 1,593 Square Feet
Lot Size 4,500 Square Feet
Land Price / Square Feet $450
2018 PICO BOULEVARDS A N T A M O N I C A , C A 9 0 4 0 5
2018
PIC
O B
OU
LEVA
RD
6 | E X E C U T I V E S U M M A R Y 2 0 1 8 P I C O B O U L E V A R D | 7
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INVESTMENT H IGHLIGHTSINVESTMENT OVERVIEW
The subject property is located on Pico Boulevard between 20th and 21st Street in the city of
Santa Monica and only 500 feet from Santa Monica College. Sitting on a 4,500 square foot lot
and zoned NC Neighborhood Commercial, 2018 Pico Boulevard presents a prime development
opportunity due to its urban infill location and high barriers to entry market. There is currently
one tenant occupying both buildings on a month-to-month lease at $3,850/monthly, which is 50
percent below market. The existing income helps lower development cost during entitlements.
Santa Monica’s Pico District is surrounded by Downtown Santa Monica and Ocean Park on the
West and Sunset Park on the South. Located within a dense infill area and surrounded by popular
shopping and dining within a 10-minute walk, Pico District has a 76 “Walk Score” and a 81 “Bike
Score” with notable amenities conveniently located in the immediate area including Whole Foods,
Santa Monica College (30,000+ enrolled students) and the Santa Monica Airport. A five-minute
drive takes you to some of Southern California’s top travel destinations including Santa Monica
Pier and beach, and the Third Street Promenade.
In addition to the subject property’s impressive demographics within a three-mile radius
($89,000+ average household income and 280,000+ population count), the site has phenomenal
visibility traveling both East and West with 21,795± vehicles per day and 45 feet of frontage on
Pico Boulevard.
Santa Monica’s retail and multifamily markets exhibit strong fundamentals with high barriers to
entry and strong demand for both product types. CoStar reports retail vacancy in the submarket at
5.1 percent, multifamily vacancy is 5.3 percent. While development in Santa Monica tends to be
limited, more new units are expected to be delivered here in 2020 with over 1,000 units currently
under construction.
• Santa Monica Development Opportunity Located 500 Feet from Santa Monica College
• Zoned: (NC) Neighborhood Commercial
• Land Square Feet: 4,500
• Lineal Frontage on Pico Boulevard of 45 Feet with 21,795± Vehicles Per Day Traveling East and West
• A ‘Very Walkable’ Walk Score of 76
• Outstanding Demographics in a Three-Mile Radius:• $89,000+ Household Income• 280,000+ Population
8 | E X E C U T I V E S U M M A R Y 2 0 1 8 P I C O B O U L E V A R D | 9c a l i f o r n i aS A N T AM O N I C A
20
18
PIC
O
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10 | E X E C U T I V E S U M M A R Y 2 0 1 8 P I C O B O U L E V A R D | 11
PICO BOULEVARD
21,795± VPD
12 | E X E C U T I V E S U M M A R Y 2 0 1 8 P I C O B O U L E V A R D | 13
2018 PICO BOULEVARD
SANTA MONICA COLLEGE
SANTA MONICA PIER
3RD STREET PROMENADE
SANTA MONICA AIRPORT
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N
S A N TA M O N I C A C O L L E G E
2 0 1 8 P I C O B L V D
14 | E X E C U T I V E S U M M A R Y 2 0 1 8 P I C O B O U L E V A R D | 15
2 0 1 8 P I C O B L V DS U B J E C T P R O P E R T Y
2 0 1 8 P I C O B L V D
2 0 1 8 P I C O B L V D
2 0 1 8 P I C O B L V D
ZONING NC Neighborhood Commercial
This Zoning District is intended to maintain and enhance small-scale neighborhood shopping districts that provide daily goods and services easily accessible from surrounding residential neighborhoods while also serving a sub-regional role. This District provides for a scale and character of development that is pedestrian-oriented and which tends to attract and promote a walk-in clientele. Development within this District should maximize human-scaled elements while providing a sensitvie transition between these uses and neighboring residential areas. Ground floor uses include active, local-serving retail and service commercial uses such as small restaurants, laundromats, dry cleaners, beauty/barber shops, and clothing and grocery stores. Pico Boulevard is a local-serving, commercial boulevard that provides an enhanced environment for pedestrians and includes a wider choice of local-serving retail, expanded mobility, and shared parking.
FINANCIALANALYSIS
2018 PICO BOULEVARD
2 0 1 8 P I C O B O U L E V A R D | 17
2 0 1 8 P I C O B O U L E V A R D | 1918 | F I N A N C I A L A N A LY S I S
FINANCIAL SUMMARY
SummaryPrice: 2,025,000
Down Payment: 100% 2,025,000
Year Built: 1948 (approximately)
Building SF: 1,593
Lot SF: 4,500
APN: 5180-008-001
Value IndicatorsCost per Building SF: 1,271.19
Cost per Land SF: 450.00
Annual Operating Data Estimated ExpensesCurrent Current Pro Forma
Scheduled Gross Income: 46,200 Property Tax 1.15% 23,288 23,288
Vacancy: 0 Insurance ($/SF): 0.50 797 797
Gross Operating Income: 46,200 Utilities: 50 600 600
Expenses: (24,684)
Net Operating Income: 21,516 Total Expenses 55.00% $24,684 $24,684
Per SF 15.50 15.50
Notes & Assumptions
[1] Currently there is one month-to-month lease at $3850 for the entire property. [2] All expenses have been estimated.
SOLDCOMPARABLES
2018 PICO BOULEVARD
2 0 1 8 P I C O B O U L E V A R D | 21
PROPERTY NAME SALES PRICE COE LAND SF LAND PRICE/SF
2018 Pico Boulevard, Santa Monica, CA 90405 $2,025,000 --- 4,502 (0.10 AC) $449.80
1819 Cloverfield Boulevard, Santa Monica, CA 90404 $16,126,000 01/17/2020 38,263 (0.88 AC) $421.42
700 Colorado Avenue, Santa Monica, CA 90401 $6,823,352 12/26/2019 10,720 (0.25 AC) $636.50
716 Colorado Avenue, Santa Monica, CA 90401 $5,351,648 12/26/2019 9,418 (0.22 AC) $568.26
11600 Santa Monica Boulevard, Los Angeles, CA 90025 $16,000,000 06/19/2019 28,356 (0.65 AC) $564.25
11700 West Santa Monica Boulevard, Los Angeles, CA 90025 $7,500,000 05/03/2019 12,981 (0.30 AC) $577.77
718-720 Hampton Drive, Venice, CA 90291 $3,600,000 04/23/2019 6,098 (0.14 AC) $590.32
Lincoln Boulevard, Venice, CA 90291 $4,000,000 01/22/2019 8,276 (0.19 AC) $483.33
2740 Main Street, Santa Monica, CA 90405 $2,925,000 08/30/2018 5,924 (0.14 AC) $493.75
1530 Pico Boulevard, Santa Monica, CA 90405 $4,800,000 04/25/2018 11,160 (0.26 AC) $430.11
416 Lincoln Boulevard, Venice, CA 90291 $3,250,000 10/04/0017 8,006 (0.18 AC) $405.93
12431 Rochester Avenue, Los Angeles, CA 90025 $7,100,000 06/13/2017 14,518 (0.33 AC) $489.05
AVERAGE LAND PRICE/SQUARE FOOT $514.61
2018 Pico Blvd, Jay Ruby
Sold Comps
1819 Cloverfield Blvd
700 Colorado Ave
716 Colorado Ave
11600 Santa Monica Blvd
11700 Santa Monica Blvd
718 Hampton Dr
Lincoln Boulevard
2740 Main St
1530 Pico Blvd
416 Lincoln Blvd
12431 Rochester Ave
1
2
3
4
5
6
7
8
SOLDCOMPARABLES
22 | S O L D C O M P A R A B L E S
SUMMARY
2 0 1 8 P I C O B O U L E V A R D | 23
9
10
11
11600 SANTA MONICA BOULEVARDLOS ANGELES, CA 90025
SUBJECT PROPERTY2018 PICO BOULEVARD, SANTA MONICA, CA 90405
24 | S O L D C O M P A R A B L E S
1 2
3 4 5
SALES PRICE $2,025,000
Sale Date --
Land SF 4,502
Land Price/SF $449.80
Zoning NC2
SOLD COMPARABLES SOLD COMPARABLES
SALES PRICE $16,000,000
Sale Date 06/19/2019
Land SF 28,356
Land Price/SF $564.25
Zoning LAC2
SALES PRICE $3,600,000
Sale Date 04/23/2019
Land SF 6,098
Land Price/SF $590.32
Zoning C2
718-720 HAMPTON DRIVEVENICE, CA 90291
LINCOLN BOULEVARDVENICE, CA 90291
2740 MAIN STREETSANTA MONICA, CA 90405
716 COLORADO AVENUESANTA MONICA, CA 90401
SALES PRICE $5,351,648
Sale Date 12/26/2019
Land SF 9,418
Land Price/SF $568.26
Zoning DCP-TA
SALES PRICE $4,000,000
Sale Date 01/22/2019
Land SF 8,276
Land Price/SF $483.33
Zoning LAC2
SALES PRICE $2,925,000
Sale Date 08/30/2018
Land SF 5,924
Land Price/SF $493.75
Zoning NC
6
SALES PRICE $4,800,000
Sale Date 04/25/2018
Land SF 11,160
Land Price/SF $430.11
Zoning SMC2
1530 PICO BOULEVARDSANTA MONICA, CA 90405
416 LINCOLN BOULEVARDVENICE, CA 90291
7 8
SALES PRICE $3,250,000
Sale Date 10/04/2017
Land SF 8,006
Land Price/SF $405.93
Zoning C2
SALES PRICE $7,100,000
Sale Date 06/13/2017
Land SF 14,518
Land Price/SF $489.05
Zoning LAC2
12431 ROCHESTER AVELOS ANGELES, CA 90025
2 0 1 8 P I C O B O U L E V A R D | 25
9 10 11
1819 CLOVERFIELD BOULEVARDSANTA MONICA, CA 90404
SALES PRICE $16,126,000
Sale Date 01/17/2020
Land SF 1,562
Land Price/SF $421.45
Zoning SMM1
11700 W SANTA MONICA BOULEVARDLOS ANGELES, CA 90025
SALES PRICE $7,500,000
Sale Date 05/03/2019
Land SF 12,981
Land Price/SF $577.77
Zoning LAC2
700 COLORADO AVENUESANTA MONICA, CA 90401
SALES PRICE $6,823,352
Sale Date 12/26/2019
Land SF 10,720
Land Price/SF $636.50
Zoning DCP-TA
449.8 421.45 636.5 568.26 564.25 577.77 590.32 483.33 493.75 430.11 405.93 489.05
Avg. $514.61
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
SP 1 2 3 4 5 6 7 8 9 10 11
AVERAGE LAND PRICE/SQUARE FOOT
SOLD COMPARABLES
26 | S O L D C O M P A R A B L E S
SP 2018 Pico Boulevard, Santa Monica, CA 90405 6. 718-720 Hampton Drive, Venice, CA 90291
1. 1819 Cloverfield Boulevard, Santa Monica, CA 90404 7. Lincoln Boulevard, Venice, CA 90291
2. 700 Colorado Avenue, Santa Monica, CA 90401 8. 2740 Main Street, Santa Monica, CA 90405
3. 716 Colorado Avenue, Santa Monica, CA 90401 9. 1530 Pico Boulevard, Santa Monica, CA 90405
4. 11600 Santa Monica Boulevard, Los Angeles, CA 90025 10. 416 Lincoln Boulevard, Venice, CA 90291
5. 11700 West Santa Monica Boulevard, Los Angeles, CA 90025 11. 12431 Rochester Avenue, Los Angeles, CA 90025
MARKETOVERVIEW
2018 PICO BOULEVARD
2 0 1 8 P I C O B O U L E V A R D | 29
DEMOGRAPHICS H IGHLIGHTS
26,0992019 POPULATION IN 1-MI RADIUS
$82,656MEDIAN HOUSEHOLD INCOME IN 1-MI RADIUS
11,814# OF HOUSEHOLDS IN1-MI RADIUS
Santa Monica is 8.3 square miles of businesses and homes; high profile corporate headquarters, a large tech entertainment district, beautiful beaches, luxury hotels, five-star restaurants and some of the finest shopping in Southern California.
Tourists and residents alike can enjoy the city’s amenities easily, while only being a short distance from its neighboring cities such as Pacific Palisades, Brentwood, Century City, Culver City, Venice, Marina Del Rey and Playa Vista.
S A N T A M O N I C A3rd Street Promenade & Downtown Santa MonicaMaster makeover in process2.1 mi from Subject Property
Bergamot Station Arts CenterSouthern California’s largest creative arts complex1.1 mi from Subject Property
Venice Beach2nd-largest tourist attraction in Southern California3.0 mi from Subject Property
Santa Monica CollegeOver 30,000 students currently enrolled0.1 mi from Subject Property
Santa Monica Municipal AirportClosing in 2028 with plans to convert into a park/rec facility2.0 mi from Subject Property
Los Angeles International Airport (LAX)World’s 2nd busiest airport; 4th busiest in the USA10.2 mi from Subject Property
Santa Monica Beach & Pier (Pacific Park)OVer 8 million visitors per year2.0 mi from Subject Property
Santa Monica PlaceMacerich-owned, 550,000 SF shopping center1.8 mi from Subject Property
Silicon Beach - Google Office in Venice BeachHome to Google, Hulu, YouTube, Facebook, etc2.4 mi from Subject Property
2 0 1 8 P I C O B O U L E V A R D | 31
The Pico neighborhood is located in the central part of the City, adjacent to Santa Monica’s industrial areas to the north and sharing Pico Boulevard with the residents of Sunset Park to the south. The Pico neighborhood has a rich cultural and social heritage and strives to maintain its culturally diverse and family-oriented resident base in the face of increasing redevelopment pressure.
The character of Pico Boulevard will be transformed from an auto-oriented thoroughfare into a neighborhood-serving boulevard that is activated by local-serving commercial uses. (see page 32)
P I C O N E I G H B O R H O O D P L A N
30 | M A R K E T O V E R V I E W
279,9452019 POPULATION IN 3-MI RADIUS
$89,143MEDIAN HOUSEHOLD INCOME IN 3-MI RADIUS
138,308# OF HOUSEHOLDS IN3-MI RADIUS
2 0 1 8 P I C O B O U L E V A R D | 3332 | M A R K E T O V E R V I E W
p i c o | c h a p t e r 2 . 4
S A N T A M O N I C A L U C E | 2.4 - 43
Location Pico Boulevard is an important connection
between West Los Angeles, Santa Monica
College, Downtown and the Pacific Ocean.
Pico Boulevard extends from the City limits
at Centinela Avenue west to the Beach at the
crossroads between the Civic Center District
and the Ocean Park neighborhood.
Expo Station
Expo Alignment
Pacific Ocean
PIC
O B
LVD
4TH ST
OC
EA
N P
AR
K B
LVD
20TH ST
LINCOLN BLVD
26TH ST
17TH ST
14TH ST
11TH ST
14TH ST
17TH ST
§̈¦10
Neighborhood C ommercial
General C ommercial
Medium Density Housing
High Density Housing
Institutional/Public Lands
Parks and O pen Space
!M Expo Stations
Expo Line
Mixed-Use Boulevard Low
-
-
MAIN ST
CENTINELA BLVD Pico Blvd VisionPico Boulevard is envisioned as an attractive,
local-serving boulevard that provides an
enhanced environment for pedestrians. The
vision includes a wider choice of local-serving
retail, expanded mobility, shared parking and
an enhanced pedestrian environment to create
an attractive and cohesive streetscape.
An area plan for the length of the boulevard
from Centinela Avenue to 9th Street identifies
neighborhood destinations at the eastern
edge of the City to serve local shopping needs
and at Santa Monica College to serve the
needs of the students, faculty and adjacent
neighbors. The neighborhood centers establish
parking districts that create shared parking
opportunities to efficiently provide parking
for multiple uses including local-serving retail,
housing and open space.
Mixed-use development with ground floor
retail and dining is encouraged to better
serve local users. Along the length of the
corridor, new buildings will form a stronger
relationship to the street by bringing buildings
forward and locating parking to the rear
or underground. Enhanced sidewalks and
streetscape improvements along with new
transit amenities create a lively local-serving
shopping environment.
“Our neighborhood should be clean and safe with...a grocery store in walking distance and coffee houses around the corner.”-commenT From land Use BoUlevards WorkshoP
2.4 - 46 | S A N T A M O N I C A L U C E
b o u l e v a r d s : p i c o
STEWART STREET TO 20TH STREET: Mixed-Use Boulevard Low, Neighborhood Commercial, Parks and Open SpaceThe character of Pico Boulevard from
Stewart Street to 20th Street is transformed
from an auto-oriented thoroughfare into
a neighborhood-serving boulevard that
is activated by local-serving commercial
uses and enhanced pedestrian and bicycle
connections to and from the neighborhoods.
Virginia Avenue Park and the new Pico
Branch Public Library provide a catalyst to
improve the pedestrian vitality of the nearby
neighborhoods and supply a focal point for
the area. Mixed-use developments on the
north side of the boulevard include pedestrian
pathways connecting the boulevard to the
adjacent neighborhoods, breaking up the
excessively long block between Stewart Street
and Cloverfield Boulevard.
Current Conditions, Trends and IssuesThis section of Pico Boulevard is dominated
by auto-oriented commercial uses with
surface parking lots adjacent to the sidewalk
and buildings located toward the rear of the
parcels. Virginia Avenue Park is an asset to
the surrounding area, but it alone cannot
mitigate the impacts that result from the
heavy automobile traffic on Cloverfield
Boulevard. Development along Pico Boulevard
has occurred in a piecemeal fashion with
no planned efforts to address the parking
and circulation issues in the area or to make
needed physical connections to adjacent
neighborhoods.
Strategic ApproachThe Mixed-Use Boulevard Low designation
encourages replacement of the auto-oriented
uses along this section of Pico Boulevard while
adding new housing and additional community
benefits, such as shared parking, plazas and
green space. Such benefits may also include
new north-south pedestrian pathways to
improve circulation and provide visual relief
along the 1,800-foot-long “superblock” on the
north side of the boulevard between Stewart
Street and Cloverfield Boulevard. To enhance
the activity generated by Virginia Avenue Park
and the new Pico Branch Public Library, local-
serving and pedestrian-oriented retail and
sit-down dining uses are encouraged near the
intersection of Cloverfield Boulevard.
Land Use Parameters(See chapter 2.1 Land Use Policy and Designations for further information.)
STEWART STREET TO 20TH STREET: Virginia Avenue Park is the cultural heart of the Pico neighborhood. The above mural references the weekly farmer’s market that draws crowds from all over the City.
PIC
O B
LVD
20TH ST
26TH ST§̈¦10
STEWART ST
CLOVERFIELD
Mixed-Use Boulevard Low
Neighborhood Commercial
Parks and Open Space
P I C O N E I G H B O R H O O D P L A N P I C O N E I G H B O R H O O D P L A N*All information found on pages 28 and 29 are directly from the City of Santa Monica’s Planning & Community
V IS I T WEBS ITE
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2 0 1 8 P I C O B O U L E V A R DS A N T A M O N I C A , C A 9 0 4 0 5ACTIVITY ID: ZAB0140245
EXCLUS IVELY L ISTED BYDAV ID W. R IDGWAY
F IRST V ICE PRES IDENT INVESTMENTS515 S . FLOWER STREET, SU I TE 500
LOS ANGELES , CA 90071CA 1129818
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