701 SANTA MONICA BLVD SANTA MONICA...701 SANTA MONICA BLVD, SANTA MONICA, CA 90401 PROPERTY ADDRESS...

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701 SANTA MONICA BLVD SANTA MONICA CAPITAL MARKETS \ INVESTMENT PROPERTIES

Transcript of 701 SANTA MONICA BLVD SANTA MONICA...701 SANTA MONICA BLVD, SANTA MONICA, CA 90401 PROPERTY ADDRESS...

Page 1: 701 SANTA MONICA BLVD SANTA MONICA...701 SANTA MONICA BLVD, SANTA MONICA, CA 90401 PROPERTY ADDRESS ±15,006 SF / 0.34 AC LAND SIZE $27,995,000 ASKING PRICE 50% OCCUPANCY ±18,450

701 SANTA MONICA BLVD SANTA MONICA

CAPITAL MARKETS \ INVESTMENT PROPERTIES

Page 2: 701 SANTA MONICA BLVD SANTA MONICA...701 SANTA MONICA BLVD, SANTA MONICA, CA 90401 PROPERTY ADDRESS ±15,006 SF / 0.34 AC LAND SIZE $27,995,000 ASKING PRICE 50% OCCUPANCY ±18,450

GARY STACHE Lic. 00773736 +1 949 725 8532 [email protected]

SHAUN MOOTHARTLic. 01773201+1 949 509 [email protected]

DREW PIONLic. 02085229+1 310 550 [email protected]

JEFF PION LIC. 00840278+1 310 550 [email protected]

MARK SHAFFERLic. 01253743+ 1 213 613 [email protected]

KEVIN FOLEY | WEST LALic. 02003567+1 310 363 4811 [email protected]

CAPITAL MARKETS EXPERTS LOCAL MARKET EXPERT

DEBT & STRUCTURED FINANCE

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I N VE ST ME N T OVE RV I E W

06P R O P E R T Y OVE RV I E W

12A R E A OVE RV I E W

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CBRE - NEWPORT BEACH 3501 Jamboree Rd. Ste 100 Newport Beach, CA 92660

F +1 949 725 8500 www.cbre.com

Specializing in the Sale of Office, Medical Office and Industrial Properties in Southern California

701 SANTA MONICA BLVD SANTA MONICA

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4 • 701 SANTA MONICA

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701 SANTA MONICA BLVD,SANTA MONICA, CA 90401

PROPERTY ADDRESS

±15,006 SF / 0.34 AC

LAND SIZE

$27,995,000

ASKING PRICE

50%

OCCUPANCY

±18,450 RSF

PROJECT SIZE

WWW.IPSOCAL.COM/701SANTAMONICA

WEBSITE

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• Only coastal office building available for purchase in Downtown Santa Monica with over 9,000 RSF vacant for an owner-user.

• Additional opportunity within three years for owner-user to occupy the remainder of the building totaling 18,450 RSF or escalate the rents from their significantly below market rates.

• Generational trophy investment opportunity located in the heart of Downtown Santa Monica’s ‘Silicon Beach’, abundant walkable amenities, premier dining, nightlife and shopping destinations, quick access to I-10 and Metro’s Expo Line station.

• The Property presents an owner-user an opportunity to save 177% over 10 years with an after-tax equity buildup of $11,396,000 over 10 years. The purchase provides protection against future rental market uncertainty and rate hikes.

• Marquee Santa Monica submarket is among the best performing and most desirable submarkets in the country. Santa Monica has one of the lowest office direct vacancies in Southern California, at 1.5% for office buildings between 15-25K SF.

• One of only two office properties over 10,000 SF in Santa Monica available for sale. Zero office availability for sale with over 9,000 RSF vacant for an owner-user in Downtown Santa Monica. Lack of available land for new development and mid-sized buildings for sale, combined with restrictive city ordinances for construction in Santa Monica, creates some of the highest barriers to entry in Los Angeles and protects new ownership against supply risk.

• Enviable Downtown Santa Monica location surrounded by such luminary ‘Silicon Beach’ technology and media names as Google, Riot Games, Amazon, ATV, Activision, Hulu, HBO, Lions Gate, RAND, Universal, Fox News, Edmunds, Sony, Twitter, Uber, Truecar, Bad Robot, and Jerry Bruckheimer Films, to name a few.

GENERATIONAL OWNER-USER / VALUE ADD COASTAL INVESTMENT OPPORTUNITY

STRONG MARKET FUNDAMENTALS

INVESTMENT OVERVIEW • 7

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• Priceless cachet of an exclusive ‘Silicon Beach’ address in Santa Monica, down the street from Santa Monica College and abundant world-class amenities that include acclaimed restaurants, world-class resorts, venerable shopping and entertainment centers, and unlimited fair-weather recreational activities. Walking distance to Third Street Promenade, Santa Monica Place, and Santa Monica Pier.

• Adjacency to some of the most affluent communities in the United States, providing proximity to executive housing and abundant high-skilled workforce. Nearby several new high density “live-work-play” residential developments.

• Significant development activity along Colorado Avenue, enhancing downtown Santa Monica’s appeal as a global recreation destination and a preferred business district for media companies. The Property is near several large-scale mixed-use development projects, including Santa Monica Proper Hotel, the Westside’s first new destination hotel, featuring Santa Monica’s only rooftop pool, deck and restaurant-bar, The Mark 302, a redevelopment of the former Sears property, and the Lincoln Collection, a 280-unit luxury apartment development.

PREMIER ‘SILICON BEACH’ COASTAL LOCATION WITH ABUNDANT AMENITIES

8 • 701 SANTA MONICA

THIRD STREET PROMENADE

SANTA MONICA PIER

SANTA MONICA PLACE

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INVESTMENT OVERVIEW • 9

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701 SANTA MONICA BLVD SANTA MONICA

SANTA MONICA FIRE STATION 1

SANTA MONCIA BLVD

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INVESTMENT OVERVIEW • 11

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Masonry

C O N ST R UCT I O N T YP E

Standard passenger elevator

E L E VATO R T YP E

56 spaces (3:1,000) / One level of parking on grade One level of subterranean parking. Building lobby on grade and 2 floors of office above

PA R K I N G

Torched on paper roofing.

R O O F I N G SYST E M

ADP security systems in suites 200 and 300.

A L A R M SYST E M

Neighborhood Village

Z O N I N G

Exterior finishes consist of concrete walls throughout building and glass windows on the 2nd and 3rd floors. Walk-in entrance on the 1st floor.

E X T E R I O R F I N I S H E S, D O O R S & W I ND OWS

Smoke detectors on each floor at elevator landing. Sprinklers throughout and tamper switches on each floor.

L I F E S A F E T Y/ F I R E P R OT E CT I O N

PROPERTY DESCRIPTION

701 SANTA MONICA BLVD, SANTA MONICA, CA 90401A D D R E S S

4291-008-016A P N

PACKAGED UNITSH VAC

± 15,006 SF ± 0.34 ACL A ND S I Z E

± 18,450 RSF ± 42,618 GROSS SFB U I L D I N G S I Z E

1983YE A R B U I LT

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701 SANTA MONICA BLVD SANTA MONICA

INVESTMENT OVERVIEW • 13

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SECOND FLOOR

THIRD FLOOR

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Elev.

Sta

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250Magnetic

2,833.85 RSF

200Need

5,580.34 RSF

230Oceanside MH

775.78 RSF

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Sta

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Sta

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300Vacant

8,420.31 RSF

240Santa Fe Studios

839.79 RSF

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701 SANTA MONICA BLVD SANTA MONICA

INVESTMENT OVERVIEW • 15

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Incorporated in 1886, Santa Monica is Southern California’s leading coastal

city, possessing a 3.5-mile stretch of the region’s famed coastline. A renowned

global destination, the city hosts more than 7 million annual visitors who are

drawn to the city’s year-round Mediterranean climate, laid-back attitudes

and many attractions. Totaling 8.3 square miles, this walkable city offers a

cosmopolitan environment that is also a short distance to many of Southern

California’s most popular destinations.

Santa Monica is also a leader in a leader in sustainability, successfully building

an economy that both protects the environment and promotes innovation. As a

hub for artists and technologists and entrepreneurs, the city has emerged as the

center of Southern California’s ‘Silicon Beach’ and home to hundreds of venture-

capital funded startup companies. Prominent technology and entertainment

companies host headquarters in Santa Monica, including

SANTA MONICA

ME D I A N AG E42.0

AVE R AG E H O U S E H O L D I N C O ME

$ 132,381

P O P U L AT I O N94,956

AVE R AG E P R O P E R T Y VA L U E

$1,350,495A NN UA L H O U S E H O L D S P E ND I N G B U D G E T

$5.4B

C O L L E G E - E D UCAT E D P O P U L AT I O N

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L A B O R F O R C E

TO P E MP LOYE E S S U R R O U ND I N G U N I VE R S I T I E S

U NE MP LOY ME N T R AT E58 ,793 4.4% (OCTOBER 2018)

INVESTMENT OVERVIEW • 17

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701 SANTA MONICA BLVD SANTA MONICA

18 • 701 SANTA MONICA

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7TH STREET

SANTA MONICA BLVD

701 SANTA MONICA BLVD SANTA MONICA

INVESTMENT OVERVIEW • 19

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Affiliated Business Disclosure

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) en-gaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund manage-ment and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the success-ful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involve-ment in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best inter-est of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

Confidentiality Agreement

Your receipt of this Memorandum constitutes your acknowl-edgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memoran-dum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further inter-est in purchasing the Property, kindly return it to CBRE, Inc.

Disclaimer

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which pro-spective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” with-out representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions re-lating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other mea-surements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Addi-tional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and com-pleteness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and nego-tiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

20 • 701 SANTA MONICA

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INVESTMENT OVERVIEW • 21

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701 SANTA MONICA BLVD SANTA MONICA

GARY STACHE Lic. 00773736 +1 949 725 8532 [email protected]

SHAUN MOOTHARTLic. 01773201+1 949 509 [email protected]

DREW PIONLic. 02085229+1 310 550 [email protected]

JEFF PION Lic. 00840278+1 310 550 [email protected]

DOUG MACKLic. 01804065+1 949 725 [email protected]

KEVIN FOLEY | WEST LALic. 02003567+1 310 363 4811 [email protected]

BRYAN JOHNSON Lic. 02018612+1 949 809 [email protected]

CAPITAL MARKETS EXPERTS LOCAL MARKET EXPERT

DEBT & STRUCTURED FINANCE