2018 PICO BOULEVARD SANTA MONICA, CA 90405€¦ · Santa Monica College (30,000+ enrolled students) and the Santa Monica Airport. A five-minute drive takes you to some of Southern

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

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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

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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

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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

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PICO BOULEVARD

21,795± VPD


2018 PICO BOULEVARD

SANTA MONICA COLLEGE

SANTA MONICA PIER

3RD STREET PROMENADE

SANTA MONICA AIRPORT

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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

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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

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SOLDCOMPARABLES

22 | S O L D C O M P A R A B L E S

SUMMARY

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11600 SANTA MONICA BOULEVARDLOS ANGELES, CA 90025

SUBJECT PROPERTY2018 PICO BOULEVARD, SANTA MONICA, CA 90405


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


Sale Date 06/19/2019

Land SF 28,356


Zoning LAC2



Land SF 6,098


Zoning C2

718-720 HAMPTON DRIVEVENICE, CA 90291

LINCOLN BOULEVARDVENICE, CA 90291

2740 MAIN STREETSANTA MONICA, CA 90405

716 COLORADO AVENUESANTA MONICA, CA 90401



Land SF 9,418


Zoning DCP-TA



Land SF 8,276


Zoning LAC2



Land SF 5,924


Zoning NC

6



Land SF 11,160


Zoning SMC2

1530 PICO BOULEVARDSANTA MONICA, CA 90405

416 LINCOLN BOULEVARDVENICE, CA 90291

7 8



Land SF 8,006


Zoning C2



Land SF 14,518


Zoning LAC2

12431 ROCHESTER AVELOS ANGELES, CA 90025

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1819 CLOVERFIELD BOULEVARDSANTA MONICA, CA 90404



Land SF 1,562


Zoning SMM1

11700 W SANTA MONICA BOULEVARDLOS ANGELES, CA 90025



Land SF 12,981


Zoning LAC2

700 COLORADO AVENUESANTA MONICA, CA 90401



Land SF 10,720


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

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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


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

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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

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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

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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

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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

https://www.smgov.net/Departments/PCD/Plans/Pico-Neighborhood-Plan/

|

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2018 PICO BOULEVARD SANTA MONICA, CA 90405€¦ · Santa Monica College (30,000+ enrolled students) and the Santa Monica Airport. A five-minute drive takes you to some of Southern