SECOND STREET A 15,329 SF CREATIVE OFFICE OFFERING IN THE HEART OF DOWNTOWN SANTA MONICA, CA
EXECUTIVE SUMMARY Holliday Fenoglio Fowler, L.P. ( HFF ), as the exclusive advisor, is pleased to present the incredible opportunity to acquire a 100% fee simple interest in Second Street Place ( the Property ), a one-of-a-kind 15,329 square foot mixed-use vacant creative office building located in the cultural epicenter of Downtown Santa Monica, California. The Property consists of two inner-connected buildings comprising 11,649 square feet of creative office and 3,680 square feet of live/ work loft space with the potential to add an additional 2,800 square foot mezzanine level above the 3rd floor in the East building. Located within the Downtown Specific Plan Zone, the Property is permitted for a variety of commercial uses (i.e. office, residential and retail). PROPERTY OVERVIEW Address Net Rentable Area (Existing) Permitted Additional Mezzanine (Potential) 1522 & 1524 2nd St Santa Monica, CA 15,329 SF 2,800 SF Total % Available 100% Year Built / Renovated 1940 / 1995 No. of Floors 3 Parking Stalls 16 (1) ROOF-TOP DECK Land Area (Acres) 0.172 (1) Consists of 10 tandem stalls, 4 stalls via lifts & 2 uncovered stall 2 SECOND STREET
MALIBU PACIFIC PALISADES BRENTWOOD RIVIERA COUNTRY CLUB SECOND STREET SANTA MONICA PIER 3RD STREET PROMENADE 2ND STREET SANTA MONICA NORDSTROM LOUIS VUITTON BLOOMINGDALE S TIFFANY S COLORADO BOULEVARD Adjacent to the world renowned Third Street Promenade, the new Expo Light Rail Terminal, and the Santa Monica Pier, the Property is ideally situated within vibrant Silicon Beach. Featuring an unparalleled rooftop patio with stunning Pacific Ocean views and a luxury live/work loft, Second Street Place encourages an environment of innovation and creativity. The full availability of the Property s rentable area combined with the exquisite architecture affords potential investors complete flexibility to reimagine Second Street Place. DOWNTOWN SANTA MONICA METRO SECOND STREET 3
INVESTMENT HIGHLIGHTS UNMATCHED LIVE, WORK, PLAY ENVIRONMENT DESIRED CREATIVE OFFICE BUILDING Second Street Place offers an exceptionally rare opportunity to acquire an irreplaceable creative asset ideally situated in the top performing submarket and epicenter of West Los Angeles technology, media and entertainment hub. Featuring spectacular open bowtruss ceilings, double height windows, ample natural light through multiple skylights, unrivaled views, an unparalleled roof-top deck, nearby access to commuter rail service and a plethora of local amenities, the Property is a highly sought-after destination for some of Santa Monica s best and brightest. Due to significant development hurdles and restrictions in the City of Santa Monica, the Property will remain one of the most unique creative office buildings in the City. Located in the heart of Santa Monica, Second Street Place is adjacent to Third Street Promenade, which attracts over 15 million visitors per year and boasts world-class shopping with retailers that include Nike, Nordstrom, Bloomingdale s, Apple, Tesla, Lululemon, and others. Deemed a Walkers Paradise by Walkscore.com, there are over 375 premier food, retail and entertainment options within a one-mile radius from the Property. Santa Monica is one of the most sought after destinations in the country and is home to the region s most popular and hip restaurants, parks, seaside trails, beachfront hotels, theaters, world-class pier and pristine beaches. The Property s proximity to such an abundance of world-class luxuries and cultural destinations will put it at the forefront of tenant demand. 3RD STREET PROMENADE 4 SECOND STREET
SECOND STREET Shore Hotel RARE DOWNTOWN SANTA MONICA ACQUISITION OPPORTUNITY Second Street Place is one of a few true creative office buildings to be offered for sale recently so close to the beach in Downtown Santa Monica. Historically, the vast majority of the existing office inventory has been controlled by institutions with a generational investment horizon, making acquisition opportunities of this caliber in Santa Monica exceptionally rare. 93 WALK SCORE 375+ DINING/ ENTERTAINMENT OPTIONS WITHIN 1 MILE 1 BLOCK FROM METRO STATION (+/- 37,000 RIDERS PER DAY) OVER 15 MILLION VISITORS PER YEAR SECOND STREET 5
HIGHLY DESIRABLE OFFICE LOCATION Downtown Santa Monica is the premier Southern California office market, as the City is flourishing by attracting best-of-the-best tenants, a highly educated workforce, significant high-tech business activity and substantial venture capital momentum. Downtown Santa Monica enjoys the highest rents in Southern California with recent Class-A signings pushing past prior peak levels with rents appreciating by 40% since 2011. SANTA MONICA PIER CENTRALLY LOCATED WITH EXCEPTIONAL ACCESS TO TRANSPORTATION & EXECUTIVE HOUSING Second Street Place offers tenants the ability to easily commute for work or play. With the newly opened Exposition Metro Line at Fourth and Colorado located only one block away, the Property benefits from the ease of access to a deep employee base. The Expo Line provides direct access from Santa Monica to the most highly sought after areas in Los Angeles, with stops that include Culver City, Exposition Park/USC and Downtown Los Angeles. Additionally, the Property benefits from its close proximity to executive housing in the highly affluent neighborhoods of Malibu, Santa Monica, Pacific Palisades, and Brentwood. 6 SECOND STREET
IMMEDIATE UPSIDE POTENTIAL WITH STRATEGIC FLEXIBILITY The lack of occupancy at Second Street Place offers a unique opportunity for an innovative investor or user to own a flagship asset with the ability to transform the building into any combination of creative office space, residential, and retail. Immediate upside potential exists through the lease-up of the vacant building in one of the hottest tenant submarkets nationally or for a potential owner-user to completely reimagine the Property creating an employee focused environment encouraging engagement and connectivity. C-3 PERMITTED ZONING USES General Offices Retail - General & Specialized Hotels and Motels Medical & Laboratory Multi-Family Dwelling Units Restaurants SECOND STREET 7
www.hfflp.com 10250 Constellation Blvd. Suite 1000 Los Angeles, CA 90067 PRESENTED BY: ANDREW HARPER Director 310.407.2139 aharper@hfflp.com CA License #01319640 BRYAN LEY Managing Director 310.407.2120 bley@hfflp.com CA License #01458927 MICHAEL MATCHETT Analyst 310.407.2132 mmatchett@hfflp.com CA License #01960206 DEBT FINANCING CONTACT: MARK WINTNER Managing Director CA License #01338778 310.407.2118 mwintner@hfflp.com SECOND STREET Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a California licensed real estate broker California License Number 01385740 ( 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. 2016 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 Twitter @HFF.