OFFERING MEMORANDUM CENTURY CITY M11700 CHARNOCK AR VISTA LOS ANGELES PALMS-CULVER CITY A premier condo/multifamily development opportunity in Mar Vista, Los Angeles, CA M11700 CHARNOCK AR VISTA LOS ANGELES A 9 unit condo/multifamily development opportunity in Mar Vista, CA CHARNOCK RD MCLAUGHLIN AVE
PRESENTED BY Earle Hyman Senior Managing Director Investments Senior Director, National Multihousing Group Tel: (818) 212-2770 Fax: (310) 388-0668 Earle.Hyman@marcusmillichap.com License: CA 00803521 Lonnie McDermott First Vice President Investments Senior Director, National Land Group Tel: (818) 212-2745 Mobile: (818) 577-8904 Fax: (818) 212-2100 Lonnie.McDermott@marcusmillichap.com License: CA 01874375 M11700 CHARNOCK AR VISTA LOS ANGELES 1 11700 CHARNOCK ROAD 2 DEVELOPMENT FINDINGS 3 COMPARABLES ANALYSIS 4 AREA OVERVIEW 2 3
WESTSIDE MALIBU PACIFIC PALISADES MARINA DEL REY VENICE OCEAN PARK SANTA MONICA PLAYA VISTA SHOPPING CENTER CULVER-WEST M11700 CHARNOCK AR VISTA LOS ANGELES A 9 unit condo/multifamily development opportunity in Mar Vista, CA VENICE BLVD PALMS BLVD MAR VISTA 4 CULVER CITY PALMS 5
11700 CHARNOCK
EXECUTIVE SUMMARY A high-profile 9 unit residential development site in Mar Vista, CA Marcus & Millichap, as exclusive listing agents, is pleased to market for sale11700 Charnock Road, a high-profile 9 unit condo / multifamily development opportunity located on the south west corner of McLaughlin Avenue and Charnock Road in Mar Vista, CA. The property is comprised of 0.17 Acres (Approximately 7,388 square feet) of land zoned R3-1. 11700 Charnock Road is ideally located in the high demand Westside submarket of Mar Vista, CA which boasts high-end demographics ($77,000-$105,433 median household income within a 3-mile radius), dense immediate population (11,923 people / sq. mile), high barriers to entry, and strong market fundamentals yielding an investor/ developer landlord favored market conditions with significant growth potential. Centrally located just west of the 405 Freeway, and conveniently located in the center of a broad range of employment and retail options, 11700 Charnock Road is surrounded by affluent high-end neighborhoods, some of the most high-end shopping malls in Los Angeles (Third Street Promenade, Marina Marketplace, and Westside Pavilion), and numerous high-profile office towers and residential developments. 1.5MILLION SF of high-end retail and entertainment including Third Street Promenade, Westside Pavilion, and Marina Marketplace 148 corporate headquarters based in Los Angeles Westside 421 MILLION SF of class A office buildings in the West Los Angeles submarket 11700 Charnock Road is conveniently positioned within close proximity to Westside beach cities, Santa Monica, Venice and Marina Del Rey. The world-renowned Westside features a plethora of high-profile office towers, and specialty retail stores as well as some of the world s most sought-after entertainment desitinations. Today, the area boasts its ever-growing housing market due to its central location and premier live/work/play environment 11700 Charnock Road lies in the center of Los Angeles Westside, the center of culture, commerce and community in the heart of Los Angeles. With recently constructed and proposed mass transit stations coming to the area, Westside is quickly becoming a premiere walkable pedestrian-oriented community. According to the Mapping L.A. project of the Los Angeles Times, Mar Vista is adjoined on the northeast by Palms, on the east, southeast and south by Culver City, on the west by Venice and on the northwest by Santa Monica. Mar Vista s street and other boundaries are: the San Diego Freeway to the Culver City boundary at Venice Boulevard on the northeast, the Culver City line on the southeast, Walgrove Avenue on the southwest and the Santa Monica city boundary on the northwest. The northern apex of the Mar Vista neighborhood is at the San Diego Freeway and National Boulevard and the southern is at Washington Boulevard and Tivoli Avenue $1.3M Median owned home value in Mar Vista $90K Median household income within a 3 mile radius 45% Bachelor s Degree or higher The property is comprised of 0.17 acres (approximately 7,388 square feet) of land currently improved with a 2,720 square foot quadraplex built in 1950. 8 9
PROPERTY OVERVIEW PROPERTY INFORMATION Address Price Land SF Land Acres Price / SF Price / Buildable Unit Zoning APN 11700 Charnock Rd, Los Angeles, CA 90066 $2,500,000 7,388 0.17 $338.38 $277,777 R3-1 4234-014-016 CHARNOCK RD DEVELOPMENT INFORMATION Conceptual Project Current Use General Planning Use Specific Plan Construction of a 9 unit Condo/Apartment with a gross building area of 15,000 square feet The site is currently improved with a 2,720 square foot quadraplex built in 1950 Medium Residential West Los Angeles Transportation Improvement and Mitigation MCLAUGHLIN AVE 10 Maximum FAR 3.0 11
DEVELOPMENT INFORMATION INVESTMENT HIGHLIGHTS LOCATION 11700 Charnock Rd, Los Angeles, CA 90066 CONCEPTUAL DEVELOPMENT Construction of a 9 unit condo/apartment building with a gross buildable area of 15,000 square feet. SQUARE FOOTAGES The net total land square footage is 7,388 square feet Prime Los Angeles Westside Location High profile suburban neighborhood Central to emerging Silicon Beach, Culver City, Venice and Santa Monica Rare opportunity to acquire R3-zoned land in Mar Vista Plethora of new high profile developments nearby Surrounded by numerous employment opportunities Convenient access to the 405 and 10 freeways Major metro station within close proximity Pedestrian-oriented community Premier live/work/play destination FRONTAGE AND ACCESS Approximately 148 feet of frontage along Charnock Road and 46 feet along McLaughlin Ave HEIGHT LIMIT 45 feet GENERAL PLAN LAND USE Medium Residential SPECIFIC PLAN AREA West Los Angeles Transportation Improvement and Mitigation ZONING Zoning is R3-1 12 CONCEPT 13
DEVELOPMENT FINDINGS
PALMS - MAR VISTA COMMUNITY PLAN INTRODUCTION The predominant land use in the community is residential with most of this low density residential development located west of Sawtelle Boulevard and between Sepulveda Boulevard and Overland Avenue, north of Rose Avenue. The majority of the multi-family development of medium and high medium density is in areas located in the northeast area of the community east ofsawtelle Boulevard. Intense multi-family development also occurs on McLaughlin, Slauson andcentinela Avenues, between Venice Boulevard and Washington Place and on boulevards. In the southern part of the community, south of Braddock Drive is the site of the Mar Vista Gardens, the only large public housing project on the Westside. The 601 unit apartment complex was built in 1954 and is operated by the City of Los Angeles Housing Authority. Most of the older multi-family housing consists of low-rise structures at two stories in height, while newer development consists of a mix at three to four stories structures. Most of this new housing is attractive having landscaped front yards, in-house amenities, and subterranean parking. A fine example of new housing is the recently constructed UCLA student housing along both sides of the San Diego Freeway. Approximately 4.1% of the land is designated for commercial uses. The majority of commercial facilities are small-scale and designed to primarily serve local populations. A regional-level scale commercial center is the Marina Place complex located on the western edge of the community adjoining Lincoln Boulevard. It contains movie theaters, a large hotel, variety of restaurants and retail uses. The remainder of the commercial uses are generally located at intersections and along the boulevards. These uses primarily consist of strip commercial on Pico and Venice Boulevards, freestanding buildings on Motor and Overland Avenues; mixed building types on Centinela Ave and small shopping centers on Sepulveda and National Boulevards and Inglewood Avenue. Of the Community s total area, approximately 6.8% is designated for manufacturing and industrial uses. The majority of this land is concentrated in the southwestern area adjacent to the Marina Freeway and known as Del Rey. 16 RESIDENTIAL Issues Need to maintain the low-density character of single family neighborhoods and protection from incompatible uses. Lack of transition in scale, density and character of multiple housing and commercial uses adjacent to single family homes. Lack of adequate parking, usable open space and recreational areas in multiple family dwelling housing. Need to improve the visual environment of multiple family dwellings through the development of appropriate design criteria and landscaping. Need to promote rehabilitation of residential areas and improve quality of housing in the southern half of the plan area. Need to coordinate new development with the availability of public infrastructure. Opportunities Moderate priced housing on the westside and relatively smog free, mild climate. Proximity to ocean amenities, airports and to major universities. Access to three major freeways and numerous employment centers Potential for residential and mixed-use development along commercial corridors M11700 CHARNOCK AR VISTA LOS ANGELES A 9 unit condo/multifamily development opportunity in Mar Vista, CA 17
DEVELOPMENT REGULATIONS R3-1 ZONING Use Permitted but not limited to: 1. Any use permitted in the R2 Two family Zone. 2. Group dwellings. 3. Multiple dwellings. 4. Apartment houses. 5. Boarding houses, rooming houses or light housekeeping rooms. 5.5. Child care facilities for not more than 20 children. 6. Accessory uses and home occupations 7. Accessory buildings Same as R1 Zone 8. Name plates and signs, and required automobile parking spaces 9. Senior Independent Housing. 10. Assisted Living Care Housing. Area No building or structure nor the enlargement of any building or structure shall be hereafter erected or maintained unless the following yards and lot areas are provided and maintained in connection with such building, structure or enlargement: 1. Front Yard There shall be a front yard of not less than 15 feet; provided, however, that on key lots the minimum front yard shall be 10 feet. 2. Side Yards For a main building not more than two stories in height there shall be a side yard on each side of said building of not less than five feet, except that where the lot is less than 50 feet in width, the side yard may be reduced to 10% of the width of the lot, but in no event to less than three feet in width. For a building more than two stories in height, one foot shall be added to the width of such side yard for each additional story above the second story, but in no event shall a side yard of more than 16 feet in width be required. 3. Rear Yard There shall be a rear yard of not less than 15 feet in depth. 4. Lot Area Every lot shall have a minimum width of 50 feet and a minimum area of 5,000 square feet. The minimum lot area per dwelling unit shall be 800 square feet. However, where a lot has a width of less than 50 feet or an area of less than 5,000 square feet and was held under separate ownership or was of record as of September 23, 1956, and the lot was created in conformance with the Subdivision Map Act, the lot may be occupied by any use permitted in this section, except for those uses explicitly requiring more than 5,000 square feet of lot area. In no case, however, shall more than two dwelling units be permitted where a lot has an area of less than 4,000 square feet. 18 19
COMPARABLES ANALYSIS
22 23 MARKET COMPARABLES - LAND ADDRESS PRICE COE LAND (SF) ZONING BUILDABLE $ / BUILDABLE $ / SF 1 3 12229 W Pico Blvd, Los Angeles, CA 90064 $1,650,000 9/14/2016 4,750 LAC2 11 units $150,000 $347.37 1 2 2 3308 Mentone Ave, Los Angeles, CA $1,900,000 5/12/17 7,500 LAR4 18 units $105,555 $253.30 4 3 3704 Glendon Ave, Los Angeles, CA 90034 $5,400,000 ON MARKET 16,305 LAR3 29 units $186,206 $331.19 4 3748 Veteran Ave, Los Angeles, CA 90034 $2,850,000 ON MARKET 9,235 LAR3 15 units $190,000 $308.64 M11700 CHARNOCK AR VISTA LOS ANGELES A 9 unit condo/multifamily development opportunity in Mar Vista, CA
24 25 MARKET COMPARABLES - LAND The Venice Collection, a six-story mixed-use building and a five-story apartment building comprising 130 luxury apartment units (1.0 mile from subject property) $400 PRICE / SF $360 $320 AVG: $310.12 $280 $240 $200 $160 $120 $80 $40 SUBJECT PROPERTY 1 2 3 4
26 27 MARKET COMPARABLES - CONDOS 1 ADDRESS PRICE COE YR BUILT TYPE SF PRICE / SF 11500 National Blvd #113, Los Angeles, CA 90064 $1,050,000 06/15/2017 2014 2 Bd / 3 Ba 1,610 $652.17 2 3827 Huron Ave #5, Culver City, CA 90232 $1,150,000 ON MAR- KET 2008 3 Bd / 3 Ba 1,880 $611.70 1 4 M11700 CHARNOCK AR VISTA LOS ANGELES A 9 unit condo/multifamily development opportunity in Mar Vista, CA 3 12411 Pacific Ave #303, Los Angeles, CA 90066 $799,000 08/04/2017 2006 2 Bd / 2 Ba 1,320 $605.30 2 4 11440 National Blvd #11 Los Angeles, CA 90064 $970,000 04/06/2017 2007 3 Bd / 3 Ba 1,771 $547.71 3
28 29 MARKET COMPARABLES - CONDOS $750 PRICE / SF $675 $600 AVG: $604.22 $525 $450 $375 $300 $225 $150 $75 1 2 3 4
30 31 MARKET COMPARABLES - APARTMENTS 2 ADDRESS PRICE COE YR BUILT UNITS SF CAP GRM $ / SF $ / UNIT 1 3716 Veteran Ave, Los Angeles, CA 90034 $3,770,000 7/28/17 2017 4 6,030 4.26% 17.45 $625.21 $942,500 3 2 2028 S Bentley Ave, Los Angeles, CA 90025 $6,185,000 9/30/16 2016 7 12,087 4.31% 17.83 $511.71 $883,571 3 3237 Fay Ave, Los Angeles, CA 90034 $5,600,000 8/1/2017 2014 7 9,744 4.07% 17.99 $574.71 $800,000 5 1 4 4270 Lindblade Dr, Los Angeles, CA 90034 $11,400,000 8/9/2016 2015 20 21,997 4.35% 15.76 $518.25 $570,000 M11700 CHARNOCK AR VISTA LOS ANGELES 5 A 9 unit condo/multifamily development opportunity in 3427 Mentone Ave, Los Angeles, CA 90034 $4,410,000 6/3/16 2009 8 9,992 4.01% 15.40 $441.35 $551,250 Mar Vista, CA 4
MARKET COMPARABLES - APARTMENTS $750 PRICE / SF $1M PRICE / UNIT 5.00% CAP RATE 20.00 GRM $675 $900K 4.50% 18.00 AVG: 4.20% AVG: 16.89 $600 $525 AVG: $534.25 $800K $700K AVG: $749k 4.00% 3.50& 16.00 14.00 $450 $600K 3.00% 12.00 $375 $500K 2.50% 10.00 $300 $400K 2.00% 8.00 $225 $300K 1.50% 6.00 $150 $200K 1.00% 4.00 $75 $100K 0.50% 2.00 SUBJECT PROPERTY 1 2 3 4 5 SUBJECT PROPERTY 1 2 3 4 5 SUBJECT PROPERTY 1 2 3 4 5 SUBJECT PROPERTY 1 2 3 4 5 32 33
34 35 RENT COMPARABLES - MULTIFAMILY NAME ADDRESS YEAR BUILT UNITS TYPE AVG SF RENT $ / SF 1 2 2 Mar Vista Lofts 3992 Inglewood Blvd, Los Angeles, CA 90066 McLaughlin14 4227 McLaughlin Ave, Los Angeles, CA 90066 2012 21 Studio 1 Bd / 1Ba 2 Bd / 2 Ba Totals / Avg 2016 14 1 Bd / 1Ba 2 Bd / 2 Ba 3 Bd / 2 Ba Totals / Avg 500 912 1,190 797 798 1,050 1,122 1,001 $2,310 $2,792 $2,618 $2,621 $2,804 $3,662 $4,509 $3,539 $4.62 $3.06 $2.82 $3.26 $3.51 $3.49 $4.02 $3.53 M11700 CHARNOCK AR VISTA LOS ANGELES A 9 unit condo/multifamily development opportunity in Mar Vista, CA 3 3 4 The Oliver 11955 W Washington Blvd, Los Angeles, CA 90066 2015 30 1 Bd / 1 Ba 2 Bd / 2 Ba Totals / Avg 736 1,222 1,125 $2,702 $4,472 $4,118 $3.67 $3.66 $3.66 5 1 Lindblade Lofts 4270 Lindblade Dr, Los Angeles, CA 90066 2015 20 1 Bd / 1 Ba 1 Bd / 1.5 Ba Totals / Avg 848 1,018 1,010 $3,130 $3,130 $3,130 $3.69 $3.07 $3.09 5 Landmark 19 13365 W Washington Blvd, Los Angeles, CA 90066 2013 19 1 Bd / 1Ba 2 Bd / 2 Ba Totals / Avg 973 1,465 1,361 $3,428 $4,289 $4,108 $3.52 $2.93 $3.02 4
RENT COMPARABLES - APARTMENTS $4.00 RENT / SF $3.40 AVG: $3.31 $3.20 $2.80 $2.40 $2.00 $1.60 $1.20 $0.80 $0.40 36 1 2 3 4 5 MAR VISTA LOFTS 37
AREA OVERVIEW
WESTSIDE CITIES MAR VISTA Among the most prosperous, trendy, and desirable locations in the world The West Side of Los Angeles County in Southern California widely perceived as the quintessential California community. Beautiful beaches, luxury homes, high-profile celebrities, and seemingly endless retail and entertainment The Westside comprises the neighborhoods of Los Angeles City and other cities (municipalities) running west of La Cienega Boulevard to the Pacific Ocean. To the east is Hollywood and Mid-Wilshire. The northern boundary is the Santa Monica Mountains. The southern boundary is less obvious - often LAX or the 105 freeway serve as a good marker, separating the Westside from the South Bay. Among the core neighborhoods are Los Angeles/West (Westwood, Brentwood, West LA), Century City, Pacific Palisades, Palms, Rancho Park, and Mar Vista. Communities further from the core include Beverly Hills, West Hollywood, Bel Air, Culver City, Venice, Santa Monica, Marina Del Rey, Playa Del Rey, Westchester and a sub-section of Westchester, Playa Vista. The Westside is among the most prosperous, trendy and interesting locations in the world. Derided by social critics as life within the Pleasure-Dome for the opportunities to live large, the Westside boasts fabulous food, homes, scenery, shopping, and people. $109,882 Average HH income within 3-m radius 299,593 Population within 3-m radius 45% Bachelor s Degree or higher An upscale pedestrian-oriented community in the heart of Westside Mar Vista is a residential and commercial neighborhood on the Westside of Los Angeles, California. It is the home of Venice High School, two private schools, a branch public library and a city park. Mar Vista is adjoined on the northeast by Palms, on the east, southeast and south by Culver City, on the west by Venice and on the northwest by Santa Monica. Mar Vista s street and other boundaries are: the San Diego Freeway to the Culver City boundary at Venice Boulevard on the northeast, the Culver City line on the southeast, Walgrove Avenue on the southwest and the Santa Monica city boundary on the northwest. The northern apex of the Mar Vista neighborhood is at the San Diego Freeway and National Boulevard and the southern is at Washington Boulevard and Tivoli Avenue. Mar Vista, while ideally central to dense urban cities, Santa Monica, Venice, Culver City and Marina Del Rey...the city maintains a close knit community with a hometown feel. The convenient proximity to numerous high profile office towers as well as retail and entertainment makes Mar Vista an ideal landlord / developer favored market conditions with significant growth potential. As populationcontinues to increase on the Westside, people are flocking to Mar Vista looking for the perfect combination of amenities and suburban peace. Mar Vista is quickly becoming a trendy location for millenials, providing favorable market conditions for the near future. The city is expecting significant growth in market demand due to its convenient access to local Metro stations, boutique shopping and restaurants, and world-renowned entertainment. 40 41
SHOPPING AND RETAIL VILLA MARINA MARKETPLACE (2.9 MILES) The project would transform the Marina del Rey-adjacent Marina Marketplace, which, right now, is home to a Barnes and Noble and DSW shoe store, among other shops. Plans call for 27,300 square feet of new retail space, along with 658 units of housing 66 of those units will be deemed affordable, which provides viable options considering the rapidly rising price of rent in the area. It s not clear how many of the businesses currently located within the marketplace will be displaced by the new project. As Urbanize LA reports, the 6.8-acre complex was developed in the 1970s and acquired by RREEF Real Estate in 2006. Renovation plans for the marketplace, along with the neighboring Villa Marina shopping center, were first reported in 2008. MAR VISTA FARMERS MARKET (0.8 MILES) Mar Vista Market is one of the most popular farmers markets in the Los Angeles area, attracting thousands of buyers and visitors each week. The Sunday markets are bustling, as Mar Vistans come out to shop, eat and visit with their neighbors. Kids are welcome and enjoy special activities, just for them. Dog-friendly, the market provides dog-sitting services. With regular DJs, there s always music in the air. Besides the obvious benefits to buyers and sellers, the farmers market also achieves broader social impacts including community development, improved health and nutrition, and preservation of family farms. WESTFIELD CULVER CITY (3.6 MILES) Westfield Culver City (also known as the Fox Hills Mall), is a shopping mall in Culver City, California, owned by the Westfield Group. Its anchor stores are Best Buy, J.C. Penney, Macy s, Nordstrom Rack, and Target. Westfield America, Inc., a precursor to Westfield Group, acquired the shopping center in 1998 and renamed it Westfield Shoppingtown Fox Hills, dropping the Shoppingtown name in June 2005. The former Robinsons-May department store closed in 2006 and was demolished in 2008 for a new wing including Target and a Best Buy store in 2009.. Opened on October 5, 1975, Fox Hills Mall was one of the first 3-level malls in California. Gruen Associates were the project architects. Situated on a 50-acre site, the Mall opened with three anchor tenants: JC Penney, The Broadway and May Co., and nearly 92% initial occupancy. 42 43
M 11700 CHARNOCK AR VISTA LOS ANGELES CULVER CITY Earle Hyman Senior Managing Director Investments Senior Director, National Multihousing Group Tel: (818) 212-2770 Fax: (310) 388-0668 Earle.Hyman@marcusmillichap.com License: CA 00803521 Lonnie McDermott First Vice President Investments Senior Director, National Land Group Tel: (818) 212-2745 Mobile: (818) 577-8904 Fax: (818) 212-2100 Lonnie.McDermott@marcusmillichap.com License: CA 01874375 M11700 CHARNOCK AR VISTA LOS ANGELES A 9 unit condo/multifamily development opportunity in Mar Vista, CA CHARNOCK RD MCLAUGHLIN AVE