th STREET SANTA MONICA CA 90403

Transcription

1 th STREET SANTA MONICA CA HISTORIC REGENCY MODERNE NORTH OF WILSHIRE South Beverly Drive, First Floor, Beverly Hills, CA OFFERING MEMORANDUM

2 MARKETING PACKAGE OVERVIEW PRESENTED BY Kenny Stevens Senior Vice President BRE# cell Eric von Bluecher Investment Associate BRE# direct PROPERTY SUMMARY Property Highlights Property Details Property Location Aerial Photo Parcel Orientation Photography FINANCIALS Mills Act Financial Overview w / Mills Act Financial Overview Rent Roll LOCATION OVERVIEW Market overview Expo Line Map COMPARABLES Active Comps Sales Comps Rent Comps hello@concord-re.com South Beverly Drive, First Floor, Beverly Hills, CA 90212

3 PROPERTY SUMMARY th STREET SANTA MONICA CA This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

4 PROPERTY SUMMARY PROPERTY HIGHLIGHTS 11 UNITS IN SANTA MONICA 5.19% Market CAP with Mills Act / 4.15% Market CAP without Mills Act Fantastic north of Wilshire location. Walk to bars and restaurants Historic Landmarked Regency Moderne architectural styling Potential Mills Act candidate for significant lower tax basis & benefits for new owner Bright and tranquil courtyard common area with built-in BBQ and shaded patio Timeless, well laid out interior floor plans with hardwood and tile floors 3 storage units providing additional income, one storage unit collecting $275/month Vacant garage will collect up to $500/month New water line from street to building All new gas lines running from street to building along with new earthquake shut-off valves. Some copper pipping throughout the building 3 new water heaters in the rear building Hardwood floors throughout Large 1 Bed / 1 Bath unit has large balcony

5 PROPERTY SUMMARY PROPERTY DETAILS PROPERTY DESCRIPTION th St, Enjoy beautiful architecture, cash flow and future upside with this ideally located multifamily investment. This stunning Historical Regency Moderne style building is located north of Wilshire in Santa Monica; which has been rated one of the highest rental markets in the nation. Shopping, restaurants, movie theaters, are within walking distance of the property. The property consists of two structures that surround a beautiful bright and tranquil courtyard common area with a built-in BBQ and shaded patio. The unit mix is comprised of (5) 1+1 s and (6) studios. One bedroom and studio units equate to less long term tenants common in Santa Monica rent controlled buildings. The interiors of the units are classic 1920s look and feel with tile and hardwood floors as well as tile counters, for easy and low cost turn-around for new tenants. Added benefit for the new owner would be to apply for the Mills Act to reduce your property tax as well as other incentives to further your return on investment. PROPERTY DETAILS Units 11 Major Intersection Wilshire Blvd & California Ave Market Santa Monica APN Zoning Type SMR2* Building SF 5,040

6 PROPERTY SUMMARY PROPERTY LOCATION

7 PROPERTY SUMMARY PROPERTY AERIAL Wilshire Blvd

8 PROPERTY SUMMARY PARCEL ORIENTATION

9 PROPERTY SUMMARY PROPERTY PHOTOS

10 PROPERTY SUMMARY PROPERTY PHOTOS

11 PROPERTY SUMMARY PROPERTY PHOTOS

12 PROPERTY SUMMARY PROPERTY PHOTOS

13 PROPERTY SUMMARY PROPERTY PHOTOS

14 PROPERTY SUMMARY PROPERTY PHOTOS

15 PROPERTY SUMMARY PROPERTY PHOTOS

16 PROPERTY SUMMARY PROPERTY PHOTOS

17 FINANCIALS th STREET SANTA MONICA CA This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

18 FINANCIALS MILLS ACT THE CITY OF SANTA MONICA

19 FINANCIALS MILLS ACT THE CITY OF SANTA MONICA Mills Act Benefits Under the Mills Act, property owners enter into preservation contracts with the city. In exchange for property tax relief, the contract requires the owner to commit to a restoration and maintenance work plan, developed through an evaluation by an architect. The original contract term is 10 years, automatically renewing indefinitely How Property Taxes are Reduced: Usually, property taxes are a set percentage of the market value, or purchase price, of a property. When applying the Mills Act, the county reassesses property taxes based on a property s ability to produce rental income.. Based on the example the city of SM provided: Market Value: $5,250,000 Net Annual Income: $152,000 New Assessed Value: $152,000 / 13% = $1,169,230 Projected property Tax: 1.25% of $5,250,000 = $65,625 Projected Mills Act property tax: 1.25% of $1,169,230 = $14,615 Total tax Savings: $51,010 Mills Ac Property Taxes: $14,615 ***Buyer to verify Properties that have been recently purchased with high property tax valuations will benefit more than those that have not changed hands and are thus already taxed at a low rate. The Mills Act Contract Program does not guarantee a reduction amount for any property. Buyer to contact city and conduct further due diligence regarding Mills Act and the historical nature of this offering.

20 FINANCIALS FINANCIAL OVERVIEW WITH MILLS ACT TAX BENEFITS Mills Act Benefits ***We can not guarantee this will be accepted by the Mills Act. Buyer to contact city and conduct further due diligence regarding Mills Act and the historical nature of this offering.

21 FINANCIALS FINANCIAL OVERVIEW

22 FINANCIALS RENT ROLL

23 LOCATION th STREET SANTA MONICA CA This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

24 LOCATION LOCATION OVERVIEW SANTA MONICA-VENICE, CALIFORNIA One of the most desirable addresses for both living and working, Santa Monica offers a walkable downtown, a blossoming public transportation system, and several notable tourist destinations. Known for its sunshine and beaches, Santa Monica prides itself as a national model for progressive issues, including social services, quality of life for local residents, and environmental leadership. Median family income is $110,000 and average home prices are $1.1 million resulting in beautiful neighborhoods and incredible ROI for real estate investors. This urban village has spectacular views of its vast white sand beaches from Palisades Park, exceptional shopping on Third Street Promenade, main Street and Montana Avenue, and the region s most renowned restaurant scene. Santa Monica stretches for about two miles along the coast before joining up with Venice Beach. A population of nearly 90,000 and a daytime workforce of about 80,000 makes Santa Monica s labor force participation rate among the highest in the world and a substantial daily in-migration of employees. Major employers include UCLA Hospital, St. John s Health Center, RAND Corporation, Universal Music Group, Activision and Santa Monica College. Silicon Beach is the Westside region of the Los Angeles metropolitan area that is home to over 500 tech startup companies. Major technology companies have opened offices in the region including Google, Yahoo!, YouTube, BuzzFeed, Facebook, AOL, Electronic Arts, EdgeCast Networks, and MySpace. The region is considered the second- or third-largest tech hub in the world, according to various reports. This has had major impacts on the type and availability of office space and on home prices in Playa Vista, Playa Del Rey, Westchester, Santa Monica, and Venice, as these areas have become more desirable due to this influx. The effects are also spilling over into Marina del Rey which is attracting tech firms. The Expo Line is a light-rail line that runs between Downtown Los Angeles and Santa Monica. The line is named Expo after Exposition Boulevard, which it runs alongside for most of its route. It is one of the six lines in the Metro Rail system, and is operated by the Los Angeles County Metropolitan Transportation Authority (Metro).

25 LOCATION LOCATION OVERVIEW Montana Ave Whole Foods Peet s Coffee Aero Theatre The Courtyard Kitchen Kreation Organic Kafe Blue Plate YogaWorks R+D Kitchen Sushi Sho Clare V Lucy Activewear Father s Office Art s Table Fairmont Miramar Hotel & Bungalows th STREET Christine Emerson Reed Park Santa Monica Pier Third Street Promenade Hillstone The Kabbalah Centre Tender Greens Banana Republic Brookstone Burke Williams AMC Santa Monica 7 AMC Loews Broadway 4 Equinox Nordstrom Soul Cycle Wilshire Blvd Whole Foods Sidecar Doughnuts & Coffee Planet Smoothie The Coffee Bean Huckleberry Café Belcampo Restaurant Santa Monica Seafood Market & Café Healthy Spot Dunkin' Donuts Rustic Canyon Memorial Park Main Street Urth Caffé M Street Kitchen Dogtown Coffee YogaWorks Hotchkiss Park JINYA Ramen Bar Brick + Mortar The Galley Edgemar Center for the Arts Pacific Street Park Stella Barra Pizzeria

26 LOCATION LOCATION OVERVIEW Expo Line Adding Value to Santa Monica s Premium Rental Market TH St

27 COMPARABLES SANTA MONICA CA This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

28 COMPARABLES SALES COMPS TH ST 3 SALES Comps rd St th St Ocean Ave nd Street th St 4 1

29 COMPARABLES SALES COMPS, Santa Monica, CA Ocean Ave Santa Monica, CA UNITS UNIT TYPE 6 Studio 5 1 Bed/1 Bath LISTED FOR $5,250,000 TOTAL UNITS 11 BLDG S.F. 5,040 SF PRICE/S.F. $1,042 PRICE/UNIT $477,273 YEAR BUILT GRM CAP 2.91% UNITS UNIT TYPE 14 Studio 2 1 Bed/1 Bath Comments: SALE PRICE $8,000,000 COE 1/27/2017 TOTAL UNITS 16 BLDG S.F. 7,876 PRICE/S.F. $1, PRICE/UNIT $500,000 YEAR BUILT 1922 Delivered vacant. No GRM / CAP rd St Santa Monica, CA nd Street, Santa Monica, CA UNITS UNIT TYPE 1 Studio 1 1 Bed/1 Bath 1 2 Bed/1 Bath SALE PRICE $2,730,000 COE 6/23/2017 TOTAL UNITS 3 BLDG S.F. 2,352 PRICE/S.F. $1, PRICE/UNIT $910,000 YEAR BUILT 1904 GRM CAP 3.53% UNITS UNIT TYPE 1 Studio 4 1 Bed/1 Bath 1 2 Bed/2 Bath SALE PRICE $3,085,000 COE 7/8/2016 TOTAL UNITS 6 BLDG S.F. 3,104 PRICE/S.F. $ PRICE/UNIT $514,167 YEAR BUILT 1900 GRM CAP 3.84% th St Santa Monica, CA UNITS UNIT TYPE 3 1 Bed/1 Bath 3 3 Bed/1 Bath SALE PRICE $2,700,000 COE 3/21/2017 TOTAL UNITS 4 BLDG S.F. 2,929 PRICE/S.F. $ PRICE/UNIT $675,000 YEAR BUILT 1941 GRM CAP 2.62% th St Santa Monica, CA UNITS UNIT TYPE 2 Studio 2 1 Bed/1 Bath 1 2 Bed/2 Bath SALE PRICE $2,815,000 COE 4/8/2016 TOTAL UNITS 5 BLDG S.F. 3,380 PRICE/S.F. $ PRICE/UNIT $563,000 YEAR BUILT 1949 GRM CAP 2.77%

30 COMPARABLES RENT COMPS TH ST 4 RENT Comps th St. #A Montana Ave #B th St th St #C Euclid St #B th St 6 8

31 COMPARABLES RENT COMPS th St #A, Santa Monica, CA Montana Ave #B, Santa Monica, CA RENT $2,150 UNIT TYPE Studio RENT $2,495 UNIT TYPE. 1 Bedroom/1Bath Comments: No parking, updated kitchen with new counter tops/appliances/cabinets, refinished wood flooring, new paint and recently updated bathroom. Comments: Hardwood floors, nice appliances and a stall shower all accompany this lovely apartment. There is on street parking th St, Santa Monica, CA th St #C, Santa Monica, CA RENT $2,900 UNIT TYPE StUdio RENT $2,950 UNIT TYPE 1 Bedroom/1Bath 5 Comments: Updated unit features a completely remodeled kitchen with stainless steel appliances, original dark hardwood floors, large private patio, and natural lighting throughout. There is a washer/dryer onsite and parking is street permitted. 848 Euclid St #A, Santa Monica, CA RENT $2,995 UNIT TYPE 1 Bedroom/1Bath UNIT SIZE 620 SQFT 6 Comments: newly remodeled Stylish and chic with wood floors, Carella marble, stainless steel appliances and gas fireplace. Beautiful details in kitchen and bath. No parking, th St, Santa Monica, CA Montana Ave #B, Santa RENT Monica, CA $3,100 UNIT TYPE 1 Bedroom/1Bath Comments: 1 secure parking spot, laundry in unit. Upgraded kitchen & bath, hardwood floors Comments: updated unit features a completely remodeled kitchen with stainless steel appliances, original dark hardwood floors, large private patio, and natural lighting throughout. There is a washer/dryer onsite and parking is street permitted

32 KENNY STEVENS BRE# C: ERIC VON BLUECHER BRE# C: South Beverly Drive, First Floor, Beverly Hills, CA OFFERING MEMORANDUM