BRANDON MICHAELS OFFERING MEMORANDUM GROUP WEST HOLLYWOOD, CA BLVD

Transcription

1 BRANDON MICHAELS GROUP S A N TA M O N I CA BLVD 8460 WEST HOLLYWOOD, CA OFFERING MEMORANDUM

2 PRESENTED BY: BRANDON MICHAELS Senior Managing Director of Investments Senior Director, National Retail Group Tel: (818) Fax: (818) License: CA # SANT MONICA BLVD WEST HOLLYWOOD FINANCIAL ANALYSIS BRANDON MICHAELS GROUP COMPARABLES ANALYSIS OFFICES NATIONWIDE 2 3

3 WEHO West Hollywood is at the cultural and geographical heart of the Los Angeles region, surrounded by must-see hotspots in every direction. 1.2 million visitors came to West Hollywood last year $750 million dollars generated by tourism to our local economy last year 16,599 jobs supported by tourism in West Hollywood GLOBAL TOURISM DESTINATION AFFLUENT NEIGHBORHOOD DEMOGRAPHICS Median age: 39 Average household income within a 1 mile radius: $111,075 Population within a 5 mile radius: 829,807 DEVELOPMENT IN WEST HOLLYWOOD Rare opportunity to purchase in a strong rental market. Significant amount of movement and turnover in the immediate marketplace, creating an opportunity for new construction to enter the market and position the submarket for the future. Upon completion of surrounding developments and with continuing improvements to the immediate area, the West Hollyowood rental market will experience significant growth and offer outstanding returns for long term investors. WHY BUY IN WEST HOLLYWOOD? SHOPPING Scores of cutting-edge labels can be found in West Hollywood, from avant-garde brands to casually luxe clothing makers. Melrose Avenue is renowned throughout the world as one of Los Angeles most walkable and unique shopping destinations. GETTING AROUND You can tuck your car away in a hotel garage and stroll to great restaurants, cafes, bars, nightclubs and shopping. Within the city s 1.8 square miles, you can people-watch on the Sunset Strip, sightsee on Santa Monica Boulevard, stop at a great cafe or restaurant on Melrose Ave. and shop at the gorgeous boutiques of the West Hollywood Design District. It s easy to sightsee in West Hollywood all on foot! DINING From the Sunset Strip to Melrose Avenue, West Hollywood never seems to sleep. There are clubs to be seen, live music to be heard, and coffee shops to work from. Fuel up with breakfast, brunch, lunch and dinner at a plethora of celebrity-frequented restaurants so that you can explore the lively neighborhood until the wee hours of the morning. WEATHER Southern California s persistently pleasant weather means it s practically always the best time to visit West Hollywood. It s sunny almost 300 days a year and the average high temperature in many parts of L.A. fluctuates less than 10 degrees through the year. 4 5

4 EXECUTIVE SUMMARY 8460BLVSANTA MONICA DWEST HOLLYWOOD, CA A RARE OPPORTUNITY TO ACQUIRE A SANTA MONICA BOULEVARD JEWEL BOX IN WORLD-RENOWNED WEST HOLLYWOOD, CA Marcus & Millichap has been selected to exclusively market for sale 8460 Santa Monica Boulevard- a 4,233 square foot, high-profile retail building, located near the corner of Santa Monica Boulevard and La Cienega Boulevard in the heart of the highly sought-after neighborhood of West Hollywood, CA. Situated on Santa Monica Boulevard, one of Southern California s busiest arterial thoroughfares, the property offers premiere exposure with 40 Feet of frontage along Santa Monica Boulevard on a bustling corner lot. West Hollywood is at the cultural and geographical heart of the Los Angeles region, surrounded by must-see hotspots in every direction. Commonly known as WeHo, the neighborhood is among the top destinations in the world, and this irreplaceable location benefits from high daily traffic counts north of 70,000 cars per day at the corner of Santa Monica Boulevard and La Cienega Boulevard Santa Monica is located in the heart of one of the most famously known locales for celebrities, wealthy residents, and tourists alike. There may be no greater concentration of the young, hip, and beautiful than in the boutiques and clubs of this famous neighborhood Santa Monica Boulevard offers the unique opportunity to acquire one of the more impressive storefront retail locations in Southern California Santa Monica Boulevard is a 1 story, 4,233 square foot storefront retail building with 3 free surface spaces located at the rear of the property. The subject property is leased to The Residency Experience, a full service national public relations agency on a five year corporate guaranteed NNN Lease. This opportunity offers a stable and secure income stream in one of Los Angeles' most high-profile locations. There is tremendous potential as current rent in the area has created an affluent community surrounding West Hollywood, making this an ideal time to purchase property along Santa Monica Boulevard. Upon the completion of the surrounding developments and continuing improvements to the immediate area, the rental market will experience significant growth and offer outstanding long-term returns for investors. There has been a significant amount of movement and turnover within the marketplace, creating an opportunity for new concepts to enter the market and position this submarket for the future. Two years ago, plans were announced to construct a mixed-use development incorporating Barney's Beanery across the street from 8460 Santa Monica Boulevard. The new proposal - calls for the construction of a mid-rise building that would contain an 88-room hotel and 45 apartments - including 11 priced below market rate. Plans also call for three restaurants - including Barney's - and an 80-seat live music venue and recording studio that will be located underground and on the south side of the property to avoid disturbing neighbors. 1.8 square miles of walkable hotspots, restaurants, nightlife, and shopping in West Hollywood 4,448 4,448 Businesses within a 1 square mile of 8460 Santa Monica Boulevard Santa Monica Boulevard scores an 92/100 on Walkscore.com 6 7

5 BLVHOLLYWOOD HILLS BEVERLY HILLS WESTWOOD 8460 SANTA MONICA DWEST HOLLYWOOD, CA PROPOSED MIXED-USE DEVELOPMENT 88 ROOM HOTEL AND 45 APARTMENT UNITS 8 9

6 PROPERTY OVERVIEW Property Address 8460 Santa Monica Boulevard West Hollywood, CA Price $4,850,000 CAP Rate 5.47% Price/SF $1,145 Building SF 4,233 Land SF 4,028 Property Type Storefront Retail Year Built 1938 Renovated 1965 APN's Zoning WDC2A Type of Ownership Fee Simple Tenant The Residency Experience Lease Type NNN Guarantee Corporate Landlord Liability None Parking 3 free surface spaces located at the rear of the property CORNER SIDE REAR

7 BLVINVESTMENT HIGHLIGHTS IRREPLACEABLE SANTA MONICA BOULEVARD LOCATION - Located on a highly walkable stretch of Santa Monica Boulevard in West Hollywood. Santa Monica Boulevard continues to be among the busiest east-west arterial thoroughfares in all of Los Angeles. Santa Monica Boulevard extends from East Hollywood, all the way to the Pacific Ocean. The location boasts designer labels, popular restaurants, and boutiques and is famously known for being a preferred destination of celebrities, wealthy residents, and tourists alike WALKABILITY Santa Monica Boulevard has a score of 92/100 for walkability. Iconic retailers and trendy/hip boutiques and restaurants populate Santa Monica Boulevard and it is a popular haven for the rich and famous ICONIC WEST HOLLYWOOD SUBMARKET - Major hotspots and destinations in the City of West Hollywood, such as the Sunset Strip, Santa Monica Boulevard, Melrose Boulevard, and Robertson Boulevard. In the immediate corridor are tenants such as, Walgreens, La Boheme, Sunset Shop, Gardens of Taxco, IHOP, and numerous day spas NNN CORPORATE GUARANTEED LEASE - Rented to The Residency Experience on a 5 year NNN Lease with minimal landlord responsibilities HIGH DAILY TRAFFIC COUNTS - Ideally located on the corner of Santa Monica Boulevard and Alfred Street, just 1 block east of the signalized corner of Santa Monica Boulevard and La Cienega Boulevard, which experiences over 70,000 vehicles per day AREA HOSPITAL- The property is located 1.2 miles away from Cedars-Sinai Medical Center 8460 SANTA MONICA HOLLYWOOD, CA DWEST SANTA MONICA BOULEVARD LA CIENEGA BLVD Located in West Hollywood, The Residency is dedicated to assist emerging and established designers in taking their brand to the next level. At The Residency Los Angeles, we offer services tailored to fit the needs of each designer. FULL SERVICE PUBLIC RELATIONS The Residency is a full service public relations agency that specializes in celebrity and editorial outreach. Strategies are specially crafted for each client to ensure maximum visibility and brand awareness. We collaborate daily with celebrity stylists, editors, costume designers and social media influencers. Services include celebrity placement, print and digital editorial placement, and generating social media content. CUSTOM DESIGN AGENCY The Residency additionally serves as a custom design agency, providing up-andcoming designers with the opportunity to create custom pieces for top celebrity talent. This could be for a film, music video, commercial, red carpet or other special events. EVENT MANAGEMENT & TRUNK SHOWS The Residency can assist you in organizing trunk shows, pop up shops, and other unique events for your brand. In addition, our showroom located in the heart of Hollywood can be used to host fashion exhibitions and other in-person experiences, thus helping you showcase your brand to important influencers in the entertainment community. CELEBRITY ENDORSEMENTS At the Residency, we ve cultivated coveted relationships with the industry s top stylists, editors, and influencers to whom we can introduce you. We will work strategically to find and negotiate the most relevant endorsements for your brand helping elevate its status and gain exposure among the Hollywood elite. LEASE ABSTRACT Tenant The Residency Experience Lease Commencement December 5, 2017 Lease Expiration July 17, 2023 Option 1-5 FMV Current Rent $261,155/year $22,096/month RENT SCHEDULE*: 12/5/2017-2/7/2019 $152,388/year $12,699/month Current 2/18/2019-6/30/2019 $265,155/year $22,096/month 7/12/ /30/2019 (abated) $265,155/year $22,096/month 12/1/ /31/2019 (partially abated) $265,155/year $22,096/month 1/1/2020-2/17/2020 $265,155/year $22,096/month 2/18/2020-2/17/2021 $265,155/year $22,096/month 2/18/2021-2/17/2022 $272,775/year $22,731/month 2/18/2022-2/17/2023 $280,902/year $23,409/month TOTAL $1,3491,142 Average NOI/Year *Seller will credit at close of escrow for any rent abatements $269,828/year

8 BLVPROPERTY SUMMARY LOCATION 8460 Santa Monica Boulevard, West Hollywood, CA SITE The subject property is located on the corner of Santa Monica Boulevard and Alfred Street COMPANY SF % $ $/SF EXPIRATION OPTION The Residency Experience RENT ROLL 4, % $22,096 $5.22 7/1/ year at FMV 8460 SANTA MONICA HOLLYWOOD, CA DWEST SQUARE FOOTAGES The building square footage is 4,233 square feet, located on a lot size of 4,028 square feet FRONTAGE AND ACCESS 40 feet of frontage on Santa Monica Boulevard and 100 feet along Alfred Street. Access is from Santa Monica Boulevard ZONING 8460 Santa Monica Boulevard is located within zoning of WDC2A YEAR BUILT The subject property was built in 1938 and renovated in 1965 TRAFFIC COUNTS Intersection of Santa Monica Blvd and La Cienega Blvd: 71,871 vehicles per day PARKING The subject property consists of 3 free spaces located at PLAT MAP the rear of the property

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10 WEST HOLLYWOOD TOP ATTRACTIONS The blend of West Hollywood's award winning shopping, dining, nightlife, and incomparable hotel collection, all in one of California s most iconic neighborhoods, creates a truly unforgettable destination. LOCATION West Hollywood is bounded by the city of Beverly Hills on the west, and on other sides by neighborhoods of the city of Los Angeles: Hollywood Hills on the north, Hollywood on the east, the Fairfax District on the southeast, and Beverly Grove on the southwest. CLIMATE West Hollywood has a Subtropical-semi-arid climate with year-round warm weather. The record high temperature of 111 F was recorded September 26, 1963, while the record low of 24 F was recorded on January 4, Snow is rare in West Hollywood, with the last accumulation occurring in Rainfall is sparse (only 13 inches annually), and falls mainly during winter months. ACCOMODATIONS West Hollywood options include world-renowned hotels such as the Chateau Marmont, SLS Hotel, Sunset Marquis, Sunset Tower Hotel, Sofitel LA at Beverly Hills and Mondrian Los Angeles. DINING From the Sunset Strip to Melrose Avenue, West Hollywood never seems to sleep. There are clubs to be seen, live music to be heard, and coffee shops to work from. Fuel up with breakfast, brunch, lunch and dinner at a plethora of celebrity-frequented restaurants so that you can explore the lively neighborhood until the wee hours of the morning. SUNSET STRIP From the heights of swank hotel rooftops like the Mondrian s SkyBar and the Tower Bar at Sunset Tower Hotel, to the glam-grunge of rock clubs like The Viper Room and Whisky a Go Go, there s a setting to suit your style and mood. In addition to clubs with music ranging from indie singer/songwriters to major headliners, there are iconic comedy clubs such as The Laugh Factory and the Comedy Store. The Sunset Strip isn t just rock and roll. Spend the afternoon shopping at Sunset Plaza, which contains more than 20 stores, like Armani Exchange and H&M. Book lovers, don t miss the iconic Book Soup, L.A. s largest independent book store, with floor-to-ceiling shelves that contain more than 60,000 titles, many of which are limited edition. The store hosts frequent author readings, so check its calendar to meet your favorite novelist or hear from up-and-comers. MELROSE AVENUE Melrose Avenue is renowned throughout the world as one of Los Angeles most walkable and unique shopping, dining and entertainment destinations. Downtown Melrose encompasses the 22 blocks along Melrose Avenue that stretch from Fairfax to Highland. More than 300 alternative and independent stores offer a wide array of merchandise found nowhere else in the city. ROBERTSON BOULEVARD Robertson Boulevard has become a haven for celebrities and paparazzi. This is partially due to a large influx of unique boutiques SHOPPING and designer clothing & jewelry stores such as Agnes B, Curve, Lisa Melrose Avenue is one of L.A. s most famous streets, featuring a myriad Kline, Kitson Boutique, Williams Sonoma, Armani Exchange, Michael of shopping. Melrose runs north of Beverly Boulevard and south of Santa Kors, Ralph Lauren, Ted Baker, M A C, Chanel, Gypsy05, Intermix, Tory Monica Boulevard. Along its "west end," Melrose Avenue is all about strolling Burch, Max Azria, Beach Bunny Swimwear, and Erica Courtney, which and shopping, so bring dough and plenty of it. The street begins at Santa is a mecca for many celebrity shoppers. In addition, several popular Monica Boulevard where the cities of Beverly Hills and West Hollywood celebrity-infused eateries are located on Robertson Boulevard, such meet, otherwise known as the intersection of posh and funky. as The Ivy

11 WEST HOLLYWOOD DEMOGRAPHICS 36,698 Total Population of Santa Monica. The median age is 39. EDUCATION 58% MALE 42% FEMALE $111,075 Average HH income within 1-m radius 606,269 Daytime Population within 5-m radius $79,410 Median HH income within 1-m radius 14.7% 24.6% 27.6% 13.9% High School Associates Degree Bachelor s Degree Grad Degree 101,146 Owner Occupied Households within 5-m radius 263,690 Renter Occupied Households within 5-m radius 829,807 Population within a 5-m radius BUSINESSES West Hollywood is home to innovative industries and a magnet for highly skilled professionals. Companies ranging from retail, tourism and nightlife, restaurants, entertainment and media, as well as arts and design are drawn to West Hollywood s creative workforce as well as its high quality of life. TOP EMPLOYERS Metro IAC/CityGrid Media City of West Hollywood Sunset Marquis London West Hollywood Standard Hotel Mondrian Hotel Andaz West Hollywood Saddle Ranch Chop House 20 21

12 BRANDON MICHAELS GROUP S A N TA M O N I CA BLVD 8460 BRANDON MICHAELS WEST HOLLYWOOD, CA Senior Managing Director of Investments Senior Director, National Retail Group Tel: (818) Fax: (818) bmichaels@marcusmillichap.com License: CA #