ICONIC RESTAURANT PROPERTY FOR SALE WITH VALUE ADD …€¦ · ICONIC RESTAURANT PROPERTY FOR SALE...

ICONIC RESTAURANT PROPERTY FOR SALE WITHVALUE ADD RE-DEVELOPMENT OPPORTUNITY

1710 & 1740 S. Coast Highway, Laguna Beach, CA

9838 Research Drive | Irvine, CA 92618 | 949-727-1200 | lee-associates.com

RYAN HARMANSenior Vice PresidentLicense ID #[email protected]

KEVIN BAYLESSVice PresidentLicense ID #[email protected]

Exclusively Offered By:

lee-irvine.com | [email protected] | 949.727.1200

CONFIDENTIALITY & DISCLAIMER

This Confidential Offering Memorandum (this “Memorandum”) is being delivered to you for the sole purpose of evaluating the possible acquisition of 1740 S. Coast Highway, Laguna Beach, California (the “Property”), and is not to be used for any other purpose or made available to any other party without the prior written consent of the Owner or Lee & Associates, Inc. - Irvine (”Broker”).

This Memorandum was prepared by the Broker based on information supplied by the Owner. It contains selected information about the Property and the real estate market but does not contain all the information necessary to evaluate the acquisition of the Property. The financial projections contained herein (or in any other Evaluation Material, including any computer diskettes) are for general reference only. They are based on assumptions relating to the general economy and local competition, among other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents.

While the information contained in this Memorandum and any other Evaluation Material is believed to be reliable, neither Broker nor Owner guarantees its accuracy or completeness. Because of the foregoing and since the Property will be sold on an “AS IS,” “WHERE IS” basis, a prospective purchase must make its own independent investigations, projections and conclusions regarding the acquisition of the Property without reliance on this Memorandum or any other Evaluation Material. Although additional Evaluation Material (which may include engineering, environmental or other reports) may be provided to qualified parties as marketing proceeds, prospective purchasers should seek advice from their own attorneys, accountants, and engineering/environmental experts.

Owner expressly reserves the right, at its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time with or without written notice. Owner shall have no legal commitment or obligations to any prospective purchaser until a written sale agreement has been fully executed, delivered and approved by Owner and any conditions to Owner’s obligations hereunder have been satisfied or waived. Owner has retained Broker as its exclusive broker and will be responsible for any commission due to Broker in connection with a sale of the Property pursuant to separate agreement. Broker is not authorized to make any representation or agreement on behalf of Owner. Each prospective purchaser will be responsible for any claims for commissions by any other Broker in connection with a sale of the Property if such claims arise from acts of such prospective purchaser or its broker.

This Memorandum is the property of Owner and Broker and may be used only by parties approved by Owner and Broker. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement.

9838 Research Drive | Irvine, CA 92618 | 949-727-1200 | lee-associates.com 9838 Research Drive | Irvine, CA 92618 | 949-727-1200 | lee-associates.com

INVESTMENT OVERVIEW

1740 S. Coast Highway, Laguna Beach, CA

Offering Price: $14,995,000

Occupancy: Vacant at close of escrow or short-term seller leaseback possible

Total Rentable Building Area:

±10,798 SF (Restaurant, Rooftop Deck, Bar & Patio Areas)

Total Land Area: ±22,250 SF

Value Add Opportunity: Option to purchase adjacent residential income property 3 units/2,206 SF (see package)

Value Add Concept: Boutique hotel with pool restaurant, live music venue/event space and covered parking (see package)


PROPERTY FEATURES


First Floor:

Durban Room Lounge:

Boma Main Dining Room:

Kitchen Side Dining:

Occupancy 57

Occupancy 72

Occupancy 35

Second Floor:

Private Dining Room (2nd Floor):

Shebeen Bar:

Shebeen Lounge:

Occupancy 21

Occupancy 59

Occupancy 122

Roof Deck:

Occupancy 99 56 Seats

Total Occupancy: 500 + People(seated + standing)

Rentable Structure Size: ±10,797.88 SF

First Floor Patio Dining: ±1,526.02 SF

First Floor Interior Area: ±3,739.59 SF

Second Floor Interior Area: ±2,626.43 SF

Second Floor Deck Area: ±1,425.43 SF

Roof Top Deck: ±1,480 SF

Total Lot Size: ±22,250 SF

APN Numbers: 644-271-11 : 644-271-10 : 644-271-09

Parking: 44 On-site Stalls68 Off-site parking spaces used for valet parking

Year Built: 1981

Year Re-Built: 2012

SUBJECT PROPERTY


• Landmark Laguna Beach Commercial Property — Recently

rebuilt Trophy Restaurant and Lounge with Roof Top Deck

boasting stunning ocean views.

• Prime Location — Situated in Laguna Beach’s “Hip District”, a

unique tourist destination consisting of art galleries, restaurants

and boutiques.

• Invaluable Entitlements — Full liquor license and

entertainment license which allow for maximization of restaurant

& entertainment uses.

• Rare On-Site Parking — The property features 41 onsite spaces

along with valet tent for arriving guests.

• High Barriers to Entry — Minimal vacancy in an established

coastal community with limited future competition from new or

redeveloped properties due to a scarcity of available land.

• High Visibility — Traffic count on Pacific Coast Highway and

Agate St is approximately 40,000 cars per day.

• Affluent Demographics & Tourist Destination — Located

between the Montage Hotel and the Surf & Sand Resort. This

landmark property is a destination location for both residents and

tourists in this coastal community.

INVESTMENT HIGHLIGHTS:



644-271-12±6,923 SF

644-271-11±3,540 SF

644-271-10±10,670 SF

644-271-09±6,565 SF

245 AGATE STREET

APN: 644-271-11 | 3,540 SF Land

1710 S. COAST HIGHWAY

APN: 644-271-10 | 10,670 SF Land

251 AGATE STREET - OPTION PROPERTY

APN: 644-271-12 | 6,923 SF Land

2,246 SF Structure

1470 S. COAST HIGHWAY

APN: 644-271-09 | 6,565 SF Land

10,797.88 SF Structure

SITE PLAN



FIRST LEVEL


SECOND LEVEL


ROOF DECK



SUBJECT PROPERTY

HOTEL LAGUNA

FASHION ISLAND

DISTANCE TO SUBJECT PROPERTY

MONTAGE HOTELTHE RITZ-CARLTON HOTELSURF & SAND RESORTHOTEL LAGUNAFASHION ISLAND

1.4 MILES5.1 MILES

0.1 MILE1.1 MILES

9.0 MILES


SUBJECT PROPERTY


SALE COMPARABLES


320 N. Coastal Highway | Laguna Beach, CAOwner UserAPN: 496-122-13Zoning: ---Year Built: 1912Sale Date: 1/15/2018

Buyer: Laguna Beach FL Management, Inc.Seller: Jon Madison Trust

Size: 2,00 SFSale Price: $5,000,000Price PSF: $2,500 PSFCAP Rate: ---Land Size: 8,712 SF

1.

331 N. Coast Highway | Laguna Beach, CAOwner UserAPN: 496-082-06Zoning: C1Year Built: 1930 Sale Date: 7/21/2017

Buyer: Mo HonarkarSeller: CBRE

Size: 4,219 SFSale Price: $6,476,795Price PSF: $1,535 PSFCAP Rate: ---Land Size: 5,663 SF

2.

Madison Square & Garden

Royal Hawaiian

2601 S. Coast Highway | Newport Beach, CARetailAPN: 049-150-05Zoning: N/AvYear Built: 1968Sale Date: 12/1/2017

Buyer: Pizza Nova PCH LLCSeller: ---

Size: 3,080 SFSale Price: $5,750,000Price PSF: $1,866 PSFCAP Rate: 3.65Land Size: 0.28 AC

3.

Pizza Nova

2800 W. Coast Highway | Newport Beach, CAMulti-FamilyAPN: 049-110-25Zoning: ---Year Built: 1945Sale Date: 7/5/2017

Buyer: ---Seller: Yu-ter Mau

Size: 5,500 SFSale Price: $5,200,000Price PSF: $945 PSFCAP Rate: ---Land Size: 16,988 SF

4.

China Palace

31621 S. Coast Highway | Laguna Beach, CARetailAPN: 658-092-13Zoning: SLVYear Built: ---Sale Date: March 2016

Buyer: ---Seller: Kim Bryant

Size: 3,400 SFSale Price: $3,150,000Price PSF: $926 PSFCAP Rate: 4.5%Land Size: 5,061 SF

5.


OPTION PROPERTY

Price:

Structure Size:

Lot Size:

$1,600,000

2,246 SF

7,500 SF

Number of Buildings:

Number of Units:

Scheduled Gross Income:

2

3

TBD

251 Agate Street, Laguna Beach, CA



HYPOTHETICAL RENDERINGS






The Montage


Laguna Beach

Laguna Beach is a seaside resort and artist community located in Southern Orange County, approximately 24 miles southeast of the county seat of Santa Ana. It’s known for having some of the most beautiful beaches in Southern California. The city is also known for its hotels, unique shops, restaurants, world famous art galleries, and art festivals. Several movies and TV shows have been filed there. The community of Laguna Beach (population 27,000) is the second oldest city in Southern Orange County, second to San Juan Capistrano. It is bordered by the Pacific Ocean on the southwest, Crystal Cove on the northwest, Laguna Woods on the northeast, Aliso Viejo and Laguna Niguel on the east and Dana Point on the southeast.

Many wealthy and progressive people have made Laguna Beach their home and added to the local culture. Much of the community’s unique identity and vitality has come from the artistic orientation of its early residents. The city of Laguna Beach was incorporated on June 29, 1972 and continues to be known as an artists’ colony and popular tourist area. The location, scenic surroundings and Mediterranean type climate ensures the city’s continued prominence.

Residents of Laguna Beach enjoy the cultural tradition and resort atmosphere of a city considered to be one of the most culturally enriched communities in our nation and, over the past hundred years, has established a highly regarded reputation as an Arts Center. Each year over three million visitors come to Laguna Beach to enjoy the stunning scenic beauty, the charm of a historic town center with unique shopping and dining experiences, recreation activities and a variety of cultural arts opportunities. These attributes are interwoven into the fabric symbolizing Laguna Beach.

The City’s annual art festivals began over 60 years ago. The renowned Pageant of the Masters, a tribute to the achievements of famous painters and sculptors, features major works of art replicated in real life tableau. The Festival of the Arts, the Sawdust Festival and Art A Fair provide a forum for the talents of several hundred artists from Southern California. The festivals also provide entertainment and employment for residents of Laguna Beach and are a part of the community’s lifestyle. The Festivals, Laguna Beach’s unique downtown shops and beach activities attract over a quarter of a million visitors to Laguna Beach during July and August with three million visiting each year. Laguna Beach is known world-wide as one of the most picturesque communities in Southern California. The city’s attractiveness is exemplified by the striking physical attributes of the Pacific Ocean and steep hillsides, prominent ridgelines, vistas, and verdant canyons portraying vast areas of open space surrounding the historic community.

Laguna Beach Demographics

2014 Est. Population 23,493 2014 Est. Households 11,3212019 Proj. Population 24,547 2019 Proj. Households 11,9132010 Census Population 22,723 2010 Census Households 10,6822000 Census Population 23,324 2000 Census Households 11,443Growth 2010-2014 3.39% Growth 2010-2014 4.23%Growth 2014-2019 4.49% Growth 2014-2019 5.24%2014 Est. Median Age 49.55 2014 Est. Average Age 43.10

LAGUNA BEACH

LAGUNA BEACH DEMOGRAPHICS

9838 Research Drive | Irvine, CA 92618 | 949-727-1200 | lee-associates.com

RYAN HARMANSenior Vice PresidentLicense ID #01399616

[email protected]

KEVIN BAYLESSVice President

License ID #01788899949.790.3142

[email protected]

1 7 4 0 S . C O A S T H I G H WAY , L A G U N A B E A C H , C A

ICONIC RESTAURANT PROPERTY FOR SALE WITH VALUE ADD …€¦ · ICONIC RESTAURANT PROPERTY FOR SALE...

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