INVESTMENT OR REDEVELOPMENT OPPORTUNITY Santa … … · Santa Monica Market Overview Santa Monica Pier vd. 913 PICO BLVD Santa Monica retains its reputation as one of Los Angeles’s

PRESENTED BY:

JESSE MUÑOZ | Senior Vice President(310) 266-3648 | [email protected] | CalBRE #01372980

913 Pico Boulevard, Santa Monica, CA 90405

INVESTMENT OR REDEVELOPMENT OPPORTUNITY

Santa Monica Commercial Building

TABLE OF CONTENTS

913 Pico BoulevardProperty Summary . . . . . . . . . . . . . . . . . . . . . 3

Site Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Rent Roll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Investment Overview . . . . . . . . . . . . . . . . . . 7

Sale Comparables . . . . . . . . . . . . . . . . . . . . . 8

Multifamily Rent Survey . . . . . . . . . . . . . . . . 9

Retail Lease Comps . . . . . . . . . . . . . . . . . . . 10

Santa Monica Market Overview . . . . . . . . . . . . . . . . . . . . . 11

Amenities . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Silicon Beach Employers . . . . . . . . . . . . . . . 13

Demographics . . . . . . . . . . . . . . . . . . . . . . . 14

913 PICO BLVD

Disclaimer: This document has been prepared for informational purposes only. Although all information furnished is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof and it is presented subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice.

JESSE MUÑOZ | Senior Vice President | (310) 266-3648 | [email protected] | CalBRE #013729802

913 Pico BoulevardWell-located on Pico Boulevard just east of Lincoln and one block south of the I-10 Freeway, this highly visible mixed-use commercial property is 100% leased . Both residential and ground floor retail rents are below market with a projected upside of 13 .08% . A buyer may also redevelop the property .

The property is near busy national credit tenants such as Walgreens, Starbucks, Fatburger, and Sherwin-Williams Paint as well as popular local brands like Sweet Rose Creamery, Red Rooster Bakery and Milo SRO .

MIXED-USE COMMERCIAL913 Pico Blvd., Santa Monica, CA 90405

Building Size: 5,083 SFLand Size: 3,947 SF / 0.09 AcAsking Price: $3,500,000 / $688.56 PSFCommercial: 2,683 SF*Apt. Units: 4Year Built: 1959Construction: MasonryStories: 2Building Height: 24’Parking: ±8 spacesZoning: GC (General Commercial)APN: 4283-021-017Unit Mix: 1 x 0+1 3 x 1+1

* Rentable commercial space includes built-in garage



SITE PLAN: 1ST FLOOR

913 Pico Boulevard

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GARAGEGARAGE

RETAIL 1RETAIL 1

RETAIL 2RETAIL 2

3'-8"

4'-0"

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SITE PLAN: 2ND FLOOR

913 Pico Boulevard

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RENT ROLL

913 Pico Boulevard

Note: Rent roll unit sizes are estimates . Buyers are hereby advised to verify all measurements through their own investigations .

Unit Type Size (SF) $/SF Monthly Rent Annual Rent 1 0+1Ba 450 $3 .51 $1,581 $18,972 2 1Bd+1Ba 650 $3 .61 $2,344 $28,128 3 1Bd+1Ba 650 $3 .68 $2,394 $28,728 4 1Bd+1Ba 650 $3 .14 $2,040 $24,480

911 Retail 1 1,500 $2 .84 $4,260 $51,120 913 Retail 2 1,183 $1 .48 $1,751 $21,012

Total 5,083 $14,370 $172,440 Laundry $35 .00 $420 .00 Misc Inc . $16 .67 $200 .04

Total Gross Income $14,405 $172,860



Price $3,500,000 Proposed FinancingPrice Per Unit $583,300 DownPayment 56% $1,960,000 Price Per SF $688 .57 Approximate Loan Amount $1,540,000 Cap Rate 3 .25% Interest Rate 4 .25%Pro Forma Cap Rate 3 .88% Loan To Value 44 .0%

Annual Debt Service $90,910 Property Information DebtCoverageRatio 1 .25 Building Size 5,083 Parcel 4283-021-017 Pre-Tax Cash Flow 1 .17% $22,839 Lot Size 3,947 Zoning SMGC Year-1PrincipalReduction $25,962 Number of Units 6 Parking ±8 TotalReturn&PrincipalReduction2 .49% $48,802 Year Built 1959 LoanType New 7-year fixed loan, 1% loan feeUnit Mix and Rent Schedule

Units Type % Mix Avg.MonthlyRent Total Rent ProFormaMonthlyRent Projected Upside1 0+1Ba 16 .67% $1,581 $1,581 $1,900 20 .18%3 1Bd+1Ba 50 .00% $2,259 $6,778 $2,750 21 .72%1 Retail 1 16 .67% $4,260 $4,260 $4,500 5 .63%1 Retail 2 16 .67% $1,751 $1,751 $3,500 99 .89%6 100 .00% $14,370 $16,250 13 .08%

Income/Expense Current MarketAnnual Gross Rent $14,370 per month $172,440 $195,000

Laundry Income $35 per month $420 $420 Other Misc . Income $200 $200 Gross Scheduled Income $173,060 $195,620 Vacancy Factor 2 .00% $(3,461) $(3,912)Effective Gross Income $169,599 $191,708

Operating Expenses New Property Taxes 1 .178512% $41,248 $41,248 Direct Assessments $1,043 $1,043 Insurance $0 .46 per SF $2,325 $2,325 Management/Administration $124 per month $1,483 $1,483 Registration Fee $90 per month $1,082 $1,082 Utilities $402 per month $4,821 $4,821 Rubbish $281 per quarter $1,125 $1,125 Gardening $35 per month $418 $418 Repairs and Maintenance $363 per quarter $1,454 $1,454 Reserves and Replacements $213 per quarter $850 $850

Total Operating Expenses (32% of GSI) $55,849 $55,849 Expenses Per Unit $9,308 $9,308 Expenses Per SF $10 .99 $10 .99

Net Operating Income $113,750 $135,859

INVESTMENT OVERVIEW

913 Pico Boulevard



SALE COMPARABLES

913 Pico Boulevard

Ocean Park Blvd

Ocean Park BlvdLincoln Blvd

Lincoln Blvd913 PICO BLVD

SUBJECT 1 2 3 4 5

Address 913 Pico Bl . 3211 Pico Bl . 1619-1619-1/2 Santa Monica Bl .

1806-1808 Lincoln Bl .

3001-3003Pico Bl . 3225 Pico Bl .

Zip 90405 90405 90404 90404 90405 90405

Building Type Retail/Office Retail/Office Retail/Office/Automotive Retail/Office Retail/Automotive Retail/Office/

Residential

Stories 2 1 1 1 1 2

Year Built 1959 1959 1977 1951 1947 1928

GBA 5,083 2,500 5,310 3,600 2,500 2,550

Land Area (SF) 3,947 5,227 7,405 6,970 4,792 5,009

Land Area (Ac) 0 .09 0 .12 0 .17 0 .16 0 .11 0 .11

Zoning SMGC SMC2 SMGC SMGC SMNC SMNC

Sale Date TBD 1/18/2019 3/15/2019 7/15/2019 10/31/2019 1/2/2020

Sale Price $3,500,000 $2,259,500 $4,200,000 $3,570,000 $2,625,000 $2,500,000

Sale Price PSF $688 .57 $903 .80 $790 .96 $991 .67 $1,050 .00 $980 .39

Notes: All comps ower-user . Source: Costar

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MULTIFAMILY RENT SURVEY

913 Pico BoulevardAddress Built Units

UnitType

Asking Rent Size (SF) $PSF

Survey Date

1 2310 Ocean Park Boulevard Santa Monica, CA 90405 1952 5 0+1 $2,095 400 $5 .24 Jan-19

2 2004 19th Street Santa Monica, CA 90404 1954 3 0+1 $1,695 400 $4 .24 Feb-19

3 1717 Ocean Park Blvd Santa Monica, CA 90404 1954 10 0+1 $2,325 333 $6 .98 Jan-19

4 1531 17th St Santa Monica, CA 90404 1976 6 1+1 $2,450 600 $4 .08 Feb-19

5 1940 Cloverfield Boulevard Santa Monica, CA 90404 1948 4 1+1 $2,695 900 $2 .99 Oct-18

6 1901 6th Street Santa Monica, CA 90405 1969 16 1+1 $2,845 770 $3 .69 Feb-19

Lincoln Blvd

Lincoln Blvd

913 PICO BLVD1

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Pico Blvd

Pico Blvd



RETAIL LEASE COMPARABLES

913 Pico Boulevard1 2 3 4 5 6

Address 902-914 Broadway

2200-2202 Main St .

1900-1916 Lincoln Blvd .

1427 Lincoln Blvd .

2301-2309 Main St .

2428-2436 2nd St .

Year Built 1989 1990 1953 1956 1922 1908/1988

Parking 3/1,000 1 .93/1,000 2 .28/1,000 1 .97/1,000 0 .11/1,000 3/1,000

Size 1,055 1,141 1,686 1,126 1,272 1,061

Rent $4 .25 $4 .75 $3 .50 $4 .25 $5 .07 $3 .75

Signed Jan-19 Nov-18 Sep-18 Apr-18 Mar-18 Feb-18

Lincoln Blvd

Lincoln Blvd

913 PICO BLVD

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Pico Blvd

Pico Blvd



Santa Monica Market OverviewSanta Monica

Pier

Linco

ln B

lvd.

913 PICO BLVD

Santa Monica retains its reputation as one of Los Angeles’s premier destinations. The city boasts surf and sand and some of the best restaurants, retail options, and nightspots in the metro . It is also one of LA’s main employment hubs and the heart of the “Silicon Beach” evolution that has drawn so many major tech companies to LA’s Westside .

Because of these advantages, Santa Monica is one of LA’s most expensive rental submarkets and the submarket’s demographics are particularly appealing for landlords. Nearly 70% of residents rent, while the larger metro is evenly split between renters and homeowners . Santa Monica’s median annual household income is around $80,000, about 25% higher than the LA average . Nearly 40% of households earn more than $100,000 .

As the heart of West LA’s “Silicon Beach” tech hub, Santa Monica’s status as a prestigious office address is also an effective driver of apartment demand. The City estimates that creative and tech companies employ more than 25,000 people in the submarket, with an annual payroll of around $3 .5 billion . The desirable location and vibrant cultural and entertainment scene are effective recruiting tools for companies looking to land top talent. This is also one of the hottest retail and shopping destinations in all of Los Angeles, if not the country .

Source: CoStar, Santa Monica Multi-Family Submarket Report



Santa Monica AmenitiesThe property is located in the heart of Santa Monica between the Downtown/Third Street Promenade shopping district and Main Street . Downtown, visitors can shop at nationally known brands such as Bloomingdale’s, Nordstrom, Barneys, Lululemon, Nike and Apple . There are several cinemas along Third Street Promenade as well as popular dining establishments in the area including True Food Kitchen, Sugarfish, BOA Steakhouse, Mercado and North . The Santa Monica Pier also hosts events throughout the year .

Along Santa Monica’s walkable Main Street, visitors and locals enjoy one-of-a-kind boutiques, acclaimed local dining, fitness options and personal services .

913 PICO BLVD

Ocean Park BlvdOcean Park Blvd

Pico BlvdPico Blvd

Lincoln BlvdLincoln Blvd

Lincoln BlvdLincoln Blvd

Colorado AveColorado Ave

Mai

n St

Mai

n St

SANTA MONICA

N Rose AveRose Ave

Wilshire BlvdWilshire Blvd

Third StreetPromenade

&Santa Monica

PlaceSanta

Monica Pier

Shoppers at Santa Monica Place Santa Monica Pier Twilight Concert Series



SANTA MONICA CULVER CITY

PLAYA VISTA30

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SiliconBeachTenantKey:

1. The Black Tux2. TheBouqsCompany3. ChowNow4. Clique Brands5. Clutter6. Dollar Shave Club7. Electronic Arts8. Fair.com9. FastPay10. Fullscreen11. Goop12. Grindr13. GumGum14. Hawke Media15. Headspace16. TheHonestCompany17. IMAX18. Laurel & Wolf19. Mediakix

20. MeUndies21. Parachute Home22. Pluto TV23. ring24. Ritual25. Scopely26. Seriously27. SteelHouse28. Studio7129. Surf Air30. TaskUs31. Tastemade32. Thrive Market33. True Car34. Winc35. WITHIN36. ZEFR37. ZipRecruiter

Silicon Beach Employers

913 PICO BLVD



Demographics POPULATION 1 Mile 2 Mile 3 Miles

2018 Estimated Population 35,736 112,622 215,838

2023 Projected Population 35,887 113,413 217,137

2018 Median Age 38 .4 38 .8 38 .8

HOUSEHOLDS

2018 Estimated Households 19,745 60,455 112,680

2023 Projected Households 20,276 62,364 116,255

Projected Annual Growth 2018 to 2023 0 .5% 0 .6% 0 .6%

Historical Annual Growth 2000 to 2018 0 .9% 0 .6% 0 .7%

RACE & ETHNICITY (2018 Estimated)

White 71 .8% 72 .8% 70 .5%

Black or African American 6 .0% 5 .2% 4 .4%

Asian or Pacific Islander 9 .1% 9 .9% 12 .6%

American Indian or Native Alaskan 0 .6% 0 .5% 0 .5%

Other Races 12 .5% 11 .6% 12 .0%

Hispanic 21 .5% 20 .3% 19 .9%

INCOME (2018 Estimated)

Average Household Income $120,801 $131,279 $139,229

Median Household Income $84,545 $93,921 $98,699

Per Capita Income $67,084 $70,710 $72,824

EDUCATION (2018 Estimated)

High School Graduate 10 .0% 10 .2% 9 .8%

Some College 14 .6% 14 .7% 15 .2%

Associates Degree Only 5 .6% 5 .1% 5 .2%

Bachelors Degree Only 38 .3% 39 .1% 38 .3%

Graduate Degree 24 .9% 25 .1% 25 .4%

BUSINESS (2018 Estimated)

Total Businesses 3,293 11,529 18,839

Total Employees 29,030 101,373 159,306

Source: Regis Online



PRESENTED BY:

JESSE MUÑOZSenior Vice President

(310) [email protected]

CalBRE #01372980

Documents

INVESTMENT OR REDEVELOPMENT OPPORTUNITY Santa … … · Santa Monica Market Overview Santa Monica Pier vd. 913 PICO BLVD Santa Monica retains its reputation as one of Los Angeles’s