N WESTERN AVENUE FULLY ENTITLED DEVELOPMENT OPPORTUNITY 51 UNITS + 7,700 SF RETAIL LOS ANGELES, CA OFFERING MEMORANDUM

Transcription

1 N WESTERN AVENUE FULLY ENTITLED DEVELOPMENT OPPORTUNITY 51 UNITS + 7,700 SF RETAIL LOS ANGELES, CA OFFERING MEMORANDUM

2 PRESENTED BY: BRANDON MICHAELS Senior Managing Director of Investments Senior Director, National Retail Group Tel: (818) Fax: (818) License: CA # BEN BROWNSTEIN Senior Associate Director, National Retail Group Director, Industrial Properties Group Tel: (818) License: CA: # NON-ENDORSEMENT AND DISCLAIMER NOTICE NON-ENDORSEMENTS Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DE- TAILS. DISCLAIMER THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN AP- PRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. 2

3 N WESTERN AVE AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ANALYSIS BRANDON MICHAELS GROUP OFFICES NATIONWIDE 3

4 HOLLYWOOD Hollywood is the hub of Los Angeles entertainment, offering world-class retail, red carpet movie premieres and celebrated live theatre. 25 million visitors annually, averaging 5,000 people per hour 640,000 square feet of retail shops, restaurants and nightclubs GLOBAL TOURISM DESTINATION Metro Red Line serving 137,000 riders each day with direct access for the growing 50,000 residents of downtown Los Angeles NEIGHBORHOOD DEMOGRAPHICS Median age: 34 Average household income within a 5 mile radius: $74,445 Population within a 5 mile radius: 1,104,691 DEVELOPMENT 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. With $3 Billion in the development pipeline, Hollywood will bring an added 4,393 residential units, 1,696 hotel rooms, and 1.2 million square feet of office space. 4

5 GETTING AROUND You can tuck your car away in one of the many lots and stroll to great restaurants, cafes, bars, nightclubs, shopping, and live entertainment. Hollywood boasts an international reputation that no other neighborhood in Los Angeles has. Hollywood still sparkles with gems of old glamorous hotels and celebrity hangouts along with an emerging urban cityscape and working production scene. WHY BUY IN HOLLYWOOD? DINING The neighborhood's oldest hangouts are cherished with a new appreciation for nostalgia, while brand-new spots emulate the old with fresher, more innovative flavors. All the while, L.A.'s most celebrated chefs continue to keep the bar high with some of the nation's best restaurants right here in Hollywood. SHOPPING From vintage clothing bargains to fine art, shopping in Hollywood spans a wide range of budgets. Hollywood spans tastes, too, and it's a particularly good neighborhood to visit if your interests are specific. Whether you're looking for movie memorabilia, Dr. Martens shoes, or rare vinyl, there's a store for you. WEATHER Southern California s persistently pleasant weather means it s practically always the best time to visit Los Angeles. 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. 5

6 EXECUTIVE SUMMARY A RARE OPPORTUNITY TO ACQUIRE A FULLY ENTITLED DEVELOPMENT OPPORTUNITY IN THE HEART OF HOLLYWOOD, CA The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively market for sale N. Western Avenue, located near the corner of Melrose Avenue and Western Avenue in a highly sought-after neighborhood of Los Angeles, CA. The subject property is an existing Martial Arts Store and Laundromat with approximately 20,803 SF of Land. Located south of Santa Monica Boulevard and just North of Melrose Ave, this prime corner project makes for an ideal site for redevelopment. This Rare, fully entitled development allows opportunity for a 51- Unit Mixed Use Project. Zoned LAC4-1D in a Tier 3 TOC with a 70% density bonus t is entitled for 45 Market Rate Units, 6 Low Income, and 7,700 SF of Retail, all on a 61,050 FAR. The subject property is situated on the cusp of Hollywood, surrounded by Paramount Pictures, Los Angeles City College, Hollywood Palladium, & Lemon Grove Recreation Center to name a few. Hollywood is the hub of Los Angeles entertainment, offering world-class retail, red carpet movie premieres and celebrated live theatre. Hollywood attracts millions of visitors each year who travel there to pay homage to their favorite stars and perhaps even catch a glimpse of a few famous personalities. Sometimes they're lucky! And while, for years, Hollywood had a rather seedy reputation, the town has endeavored to make recent improvements in many areas, adding a new kind of charm to this interesting neighborhood. 6 There is tremendous potential as current rent in the area has created an affluent community surrounding Melrose Avenue, making this an ideal time to purchase property in Hollywood. 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. With $3 Billion in the development pipeline, Hollywood will bring an added 4,393 residential units, 1,696 hotel rooms, and 1.2 million square feet of office space.

7 1.7 2, square miles of walkable hotspots, restaurants, nightlife, and shopping in Hollywood, CA 2,116 Businesses within a 1 square mile of N Western N Western scores an 89/100 on Walkscore.com 7

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10 PROPERTY OVERVIEW Property Address N Western avenue Los Angeles, CA Price $7,000,000 Land Price/ SF $ Land SF 20,803 Property Type Fully Entitled Land Development Entitlements 51 Apartment Units 7,700 SF of Retail APN's , , Year Built 1922 Zoning LAC4-1D Type of Ownership Fee simple Parking 20 Surface Spaces 10

11 INVESTMENT HIGHLIGHTS FULLY ENTITLED DEVELOPMENT OPPORTUNITY Fully Entitled Mixed Use Project- 51 Units + 7,700 SF of Storefront Retail. HOLLYWOOD CORNER LOCATION Hollywood is the hub of Los Angeles entertainment, offering world-class retail, red carpet movie premieres and celebrated live theatre. No other corner of LA is steeped in as much mythology as Hollywood. It's here that you'll find the Hollywood Walk of Fame, the Capitol Records Tower and Grauman's Chinese Theatre, where the hand- and footprints of entertainment deities are immortalized in concrete. REVITALIZATION OF HOLLYWOOD 25 million visitors annually, averaging 5,000 people per hour. Metro Red Line serving 137,000 riders each day with direct access for the growing 50,000 residents of downtown Los Angeles. Tremendous revitalization in Hollywood over the past decade, 4.8 billion dollars has been invested since 2000 by developers of multifamily, commercial, and hospitality. Creative businesses are taking root in Hollywood due to its access to the Metro, city life, and live/work spaces. SIGNIFICANT FOOT TRAFFIC N Western Avenue has a score of 89/100 for walkability. Iconic retailers and trendy/hip boutiques and restaurants populate Melrose Avenue and it is a popular haven for the rich and famous. 11

12 PROPERTY SUMMARY LOCATION N Western Avenue, Los Angeles, CA SITE The subject property is located on the southwest corner of N Western Avenue and Marathon Street Avenue, just 300 feet north of Melrose Avenue. RENT ROLL SQUARE FOOTAGES Three adjacent parcels of land totaling 20,803 square feet ZONING N Western Avenue is located within zoning of LAC4-1D YEAR BUILT The subject property was built in 1922 TRAFFIC COUNTS Intersection of N Western Avenue and Melrose Avenue: 38,252 vehicles per day PARKING 20 Surface Spaces are available; Ratio of 1.55/1,000 SF 12 PLAT MAP

13 747 N WESTERN AVENUE 737 N WESTERN AVENUE 13

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15 ENTITLEMENTS 15

16 ENTITLEMENTS VALUATION Site Address N Western Ave City Los Angeles, CA Price $7,000,000 Price Per SF (Land) $ Total Land SF 20,803 Zoning Community Plan Area Area Planning Commision Neighborhood Council LAC4-1D Hollywood Central Hollywood Studio District Current Building SF 12,190 Square Footage of Proposed Development Height 61, Feet Number of Stories 6 Parking 2 Levels of Subterranean Parking Number of Parking Spaces 86 Total Units 51 Extremly Low Income 6 Market Rate Units 45 Price per Buildable Unit $137,

17 ENTITLEMENTS RESIDENTIAL UNITS PER FLOOR 2ND 3RD 4TH 5TH 6TH TOTAL Studio bed bed bed TOTAL AREA TABULATION COMMERCIAL SF RESIDENTIAL SF TOTAL SF 6th - 6,790 6,790 5th - 11,510 11,510 4th - 11,510 11,510 3rd - 11,510 11,510 2nd - 11,510 11,510 1st 7, ,220 TOTAL 7,700 51,350 61,050 PARKING Parking for Residential 32 Units x 1 (Studio &1BED) = Units x 2 (2BED & 3BED) = 38 TOTAL = 70 Cars Parking for Commercial 1/500 SF Proposed Parking = 16 Cars Total Parking 86 Cars UNIT BREAKDOWN BY SF # UNITS BEDS SF 1 Retail Retail Studio Bed Bed Bed Bed Bed Bed Bed 1090 RENT ROLL COMPANY SF RENT RENT/SF LEASE OPTION Laundrywood 7,700 $9,000 $ Two-5 Year Options Golden Tiger 5,170 Vacant at COE 1 3 Bed Bed

18 ENTITLEMENTS 18 SITE PLAN

19 ENTITLEMENTS BASEMENT

20 ENTITLEMENTS BASEMENT

21 ENTITLEMENTS 1ST FLOOR PLAN 21

22 ENTITLEMENTS 22 2ND FLOOR PLAN

23 ENTITLEMENTS 3RD - 5TH FLOOR PLAN 23

24 ENTITLEMENTS 24 6TH FLOOR / ROOF DECK

25 ENTITLEMENTS ROOF PLAN 25

26 ENTITLEMENTS 26 NORTH & EAST ELEVATION

27 ENTITLEMENTS WEST & SOUTH ELEVATION 27

28 ENTITLEMENTS SECTION 1 & 2 28

29 ENTITLEMENTS LANDSCAPE PLAN 29

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31 AREA OVERVIEW 31

32 HOLLYWOOD, CA Hollywood is the hub of Los Angeles entertainment, offering world-class retail, red carpet movie premieres and celebrated live theatre. LOCATION Hollywood is flanked by Hollywood Hills to the north, Los Feliz to the northeast, East Hollywood or Virgil Village to the east, Larchmont and Hancock Park to the south, Fairfax to the southwest, West Hollywood to the west and Hollywood Hills West to the northwest. CLIMATE Los Angeles 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 Los Angeles, with the last accumulation occurring in Rainfall is sparse (only 13 inches annually), and falls mainly during winter months. ACCOMODATIONS Hollywood hosts world-renowned hotels such as the The Hollywood Roosevelt, Loews Hollywood Hotel, W Hollywood, Dream Hollywood, Mama Shelter, and Kimpton Everly Hotel. DINING From celebrity chefs to celebrity diners, famed faces might turn your head while you eat. There is no guarantee that you'll have a celebrity sighting while eating in Hollywood, but at least you can dine like one. Musso and Frank's Grill, Pizzeria Mozza, Pink's Famous Hot Dogs, Petit Trois, and Yamashiro are just a few of the exciting dining choices located in Hollywood. SHOPPING From vintage clothing bargains to fine art, shopping in Hollywood spans a wide range of budgets. Hollywood spans tastes, too, and it's a particularly good neighborhood to visit if your interests are specific. Whether you're looking for movie memorabilia, Dr. Martens shoes, or rare vinyl, there's a store for you. Check out our guide to get started on your Hollywood shopping adventure. 32

33 TOP ATTRACTIONS HOLLYWOOD ENTERTAINMENT DISTRICT Hollywood Boulevard is a Los Angeles cultural icon, with museums, landmarks and other attractions that celebrate L.A. s rich film and entertainment heritage. You can see the footprints of the stars at the TCL Chinese Theatre, see the stars on the Hollywood Walk of Fame, do some serious shopping at Hollywood & Highland, or visit the famous Hollywood Wax Museum. Along its stretch from Highland Avenue to Orange Drive, you can find a day s worth of activities that will give you a true Hollywood experience. You never know who you'll run into! Arnold Schwarzenegger recently shocked fans by making an appearance at Madame Tussauds Hollywood. 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. NEARBY HOT SPOTS 33

34 DEMOGRAPHICS 106,104 Total Population of Hollywood, CA. The median age is 34. EDUCATION 54% MALE 46% FEMALE 20.6% 8.8% 34.5% 16.8% High School Associates Degree Bachelor s Degree Grad Degree BUSINESSES 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 the area's creative workforce, as well as its high quality of life. TOP EMPLOYERS Metro IAC/CityGrid Media City of Hollywood Paramount Pictures Live Nation Entertainment Trailer Park Walt Disney Co Warner Bros Studio Cedar-Sinai Medical enter 34

35 $74,445 Average HH income within 5-m radius 699,560 Daytime Population within 5-m radius $46,244 Median HH income within 1-m radius 87,613 Owner Occupied Households within 5-m radius 352,608 Renter Occupied Households within 5-m radius 1,104,691 Population within a 5-m radius 35

36 N WESTERN AVENUE LOS ANGELES, CA BRANDON MICHAELS Senior Managing Director of Investments Senior Director, National Retail Group Tel: (818) Fax: (818) bmichaels@marcusmillichap.com License: CA # BEN BROWNSTEIN Senior Associate Director, National Retail Group Director, Industrial Properties Group Tel: (818) ben.brownstein@marcusmillichap.com License: CA: #