CLASS-A OFFICE INVESTMENT OFFERING

Transcription

1 CLASS-A OFFICE INVESTMENT OFFERING Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a California licensed real estate broker California License Number ( HFF ). 1

2 429 SANTA MONICA Holliday Fenoglio Fowler, L.P. ( HFF ), as the exclusive advisor, is pleased to extend to qualified investors the opportunity to acquire the 100% fee simple interest 429 Santa Monica, exceptionally located in heart of Downtown Santa Monica s walking core and one block from the world renowned 3rd Street Promenade. Residing in one of the hottest office submarkets nationally, 429 Santa Monica (the Property, the Building ) is an 86,951 square foot, 7-story class A office tower benefiting from its position in Silicon Beach that is experiencing unprecedented economic resurgence and tenant growth. 429 Santa Monica boasts outstanding ocean and mountain views, an impressive 94 walk score and immediate access to public transit via both the new Santa Monica Expo Line and the rapid lane metro system that is three blocks from the Property. 429 Santa Monica embodies the ideal combination of a downtown location with significant value-add potential through future leasing and repositioning of the Property s common areas. 429 Santa Monica features a newly renovated lobby, subterranean parking with valet service, and a corner location on Santa Monica Blvd and 5th Street. 429 Santa Monica has a dynamic tenant roster that includes Union Bank, Screenvision, Angeles Investments and Abacus Wealth Management, with in-place rents that are below market, providing an excellent mark-to-market opportunity. NET RENTABLE AREA BOMA YEAR BUILT/ RENOVATED LEASED PERCENTAGE NO. OF FLOORS PARKING SPACES LAND AREA WALK SCORE AVG. FLOOR PLATE 86,951 SF 1982/ % (2.88 : 1,000 SF) 0.52 ACRES 94 12,422 SF 2

3 Well-positioned with over 375 premier food, retail & entertainment options within one mile radius from the Property. MALIBU PACIFIC PALISADES BRENTWOOD Santa Monica Expo Line Metro Station 3

4 RARE INSTITUTIONAL QUALITY OFFICE ASSET WITH UPSIDE POTENTIAL IN DOWNTOWN SANTA MONICA Centrally located in the heart of Downtown Santa Monica, 429 Santa Monica is an irreplaceable Southern California office asset that has been institutionally owned and maintained since it was developed. The Property features best-in-class finishes and flexible, floor plates of varying sizes that maximize usability and views. Recent capital improvements, totaling over $1.2 million, further increased the allure of the lobby and common areas. The Downtown Santa Monica submarket has been 92% leased on average for the past 10 years. 429 Santa Monica s current occupancy is below historical and market averages, providing immediate upside potential for the next owner. HIGHLY DIVERSIFIED RENT ROLL The broad diversity of business sectors in occupancy at 429 Santa Monica attests to the influx of TAMI tenants into the Santa Monica office submarket. The Property is well-positioned to capitalize on the continued growth of TAMI (technology, advertising, media, and information) tenants while maintaining consistent demand from the entrenched FIRE (finance, insurance and real estate sectors). Real Estate/Rental 12% Government 8% Media & Advertising 12% Technology 12% Arts, Entertainment, Recreation 4% Retail 4% Financial 32% Legal 16% Ocean View from 429 Santa Monica 4

5 VALUE ENHANCEMENT OPPORTUNITY THROUGH ACTIVATING ROOF DECKS & COMMON AREAS Driven by changing work styles, mobile technology, and the growing presence of Millennials floor plans are opening up, and trendy breakout areas, outdoor space and cafés are on the rise. To further capitalize on tenant demand for outdoor work space in Downtown Santa Monica, the Property provides an exceptional opportunity to activate it s roof decks and common areas. Potential Roof Deck Potential Value Enhacement Opportunity Potential Common Area UNRIVALED LIFESTYLE ENVIRONMENT Positioned at the core of Downtown Santa Monica, 429 Santa Monica is surrounded by a deep amenity base that is rapidly transforming the CBD into a true 18-hour city. The celebrated entertainment destination Third Street Promenade, which attracts over 15 million visitors per year and boasts flagship stores from premier retailers (i.e. Apple, Tesla, Lululemon, Nike, Nordstroms, Bloomingdale s, is one block west of the Property. 429 Santa Monica, with an outstanding walk score of 94, enjoys over 375 food, retail, and entertainment options within a one mile radius. Additionally, a potential mixed-use development site that is owned by the City directly adjacent to 429 Santa Monica will drastically increase the desirability of the asset. The Plaza at Santa Monica, bordered by 4th and 5th Street & Arizona Avenue and 429 Santa Monica, will provide synergistic amenities and further solidify the location as the core of Downtown Santa Monica. The Plaza at Santa Monica MIXED USE PROJECT (PENDING APPROVAL) + 12-STORIES MIXED-USE + 54 RESIDENTIAL UNITS + 12K SF OF CULTURAL SPACE ROOM HOTEL + 209K SF OFFICE + 40K SF RETAIL 5

6 DOWNTOWN SANTA MONICA SUBMARKET MOMENTUM As one of the strongest submarkets in the nation, the Downtown Santa Monica Class A office is currently 92% leased and has maintained an average occupancy of 92% over the past 10 years. Due to development hurdles and restrictions imposed by the City of Santa Monica, the Downtown market offers limited development opportunities. 39% INCREASE IN ASKING RENTS $1.84 BILLION TOTAL ANNUAL VISITOR SPENDING 50% MILLENNIALS IN WORKFORCE BY % RAPIDLY APPROACHING PRE-RECESSION LEVELS UNEMPLOYMENT 50 MINUTES $1,285,000 SANTA MONICA TO DOWNTOWN FROM NEW EXPO LINE MEDIAN HOME PRICE; MORE THAN DOUBLE OF LA COUNTY $576,000 6

7 COVETED SILICON BEACH LOCATION The term Silicon Beach encompasses the cities of Santa Monica, Venice, Marina del Rey, and Playa Vista, which have experienced substantial growth in the tech-sector and in startup investment over the last several years. 7

8 EXCLUSIVELY PRESENTED BY: FOR LEASING: RYAN GALLAGHER Senior Managing Director T CA Lic. # ANDREW HARPER Director aharper@hfflp.com T CA Lic. # MICHAEL LEGGETT Senior Managing Director mleggett@hfflp.com T CA Lic. # TIM GEIMAN Director tgeiman@hfflp.com T CA Lic. # TIM DORNAN Partner- Industry Partners td@industrypartners.com T CA Lic. # FOR DEBT FINANCING: MICHAEL MATCHETT Analyst mmatchett@hfflp.com T CA Lic. # KEVIN MACKENZIE Senior Managing Director kmackenzie@hfflp.com T CA Lic. # ATLANTA AUSTIN BOSTON CAROLINAS CHICAGO DALLAS DENVER HOUSTON INDIANAPOLIS LOS ANGELES MIAMI NEW JERSEY NEW YORK CITY ORANGE COUNTY ORLANDO PHILADELPHIA PHOENIX PITTSBURGH PORTLAND SAN DIEGO SAN FRANCISCO TAMPA WASHINGTON D.C. Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a California licensed real estate broker California License Number ( HFF ). HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on HFFLP.COM