NORTH COAST APARTMENTS - LoopNet€¦ · to present the opportunity to acquire North Coast...

NORTH COAST APARTMENTSLAGUNA BEACH, CALIFORNIA

CONFIDENTIALITY AGREEMENTThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

All Property Showings are by appointment only. Please contact the listing agents for more details.

EXCLUSIVELY LISTED BYKURT M. HEDIGER

Senior AssociateNewport Beach OfficeTel: 949-419-3226Email: [email protected] License: 01846649

TYLER C. LEESON

Senior Managing DirectorNewport Beach OfficeTel: 949-258-4539Email: [email protected] License: 01451551

MATTHEW J. KIPP

Vice President InvestmentsNewport Beach OfficeTel: 949-419-3254Email: [email protected] License: 01364032

DANIEL E. RABIN

Financial AnalystNewport Beach OfficeTel: 949-419-3306Email: [email protected] License: 01945571

ASHLEY A. SANCHEZ

Transaction CoordinatorPhoenix OfficeTel: 949-419-3219Email: [email protected]

Table of Contents04

EXECUTIVE SUMMARY

10PROPERTY DESCRIPTION

16FINANCIAL ANALYSIS

18MARKET COMPARABLES

26MARKET OVERVIEW

NORTH COAST APARTMENTS1530 North Coast Highway, Laguna Beach, CA

Executive Summary

The OfferingMarcus & Millichap, as the exclusive listing agent, is pleased to present the opportunity to acquire North Coast Apartments, a mixed multifamily and retail property located at 1530 North Coast Highway in Laguna Beach, California. Built in 1962, the property consists of five* dwelling units and one retail suite on a 4,200 square foot lot. The property includes four covered parking spaces, an on-site laundry facility, and spacious patios with stunning panoramic ocean views (some units).

Located near the intersection of North Coast Highway and San Joaquin Street and just over one mile from Main Beach Laguna, the property provides convenient access to retail, dining, and entertainment options. Furthermore, the property is within walking distance to Crescent Bay Point Park and Crescent Bay Beach.

Given its premier coastal location and its proximity to some of the strongest demographics in Orange County, 1530 North Coast Highway represents a rare opportunity to acquire a pride-of-ownership asset in the affluent and highly desirable Laguna Beach submarket.

1530 N COAST HWY

5NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353

NOTES: *One unit is split into two units.

AnaheimStadium

Disneyland

KnottsBerry Farm

CA StateUniv

ConcordiaUnivUniv

of CA

El Toro MarineCorps Air Station

Bolsa ChicaState Beach

HuntingtonState Beach

Crystal CoveState ParkCorona Del Mar

State Beach

Chino HillsState Park

Gulf of Santa Catalina

San Pedro BaySa

nta A

na R

iver

LakeMathews

evA dl eifmool

B

dvlB adari

M aL

Imperial Hwy

Valle

y Vi

ew S

t

dR acih

C asloB

Katella Ave

tS tsr uhkoor

B

1st StBolsa AveH

arbo

r Blv

ddvl

B r obr aH

Warner Ave

tS llessal

GevA dnar

G

Chapman Ave

Loma

St

VillaPark Rd

Santiago Canyon Rd

Yorba Linda Blvd

OrangethorpeAve

Rose D

r

Chapman AveMalvern Ave

Nohl Ranch Rd

Serra

noAv

e

Newpo

rtBlvd

Newpo

rt Av

e

Irvine Blvd

Culver

Dr

Newpo

rtCoa

st Dr

El Toro

Rd

TrabucoRd

Mar

guer

itePk

wy

Santiago

Canyon R

d

Crow

n Valle

y Pkw

y

Victoria Ave

5Th St

rofil aC Av

e

La Sierra Ave

ArlingtonAve

River Rd

Mai

n St

OntarioAve

El Sobrante Rd

Lake

Mathews Dr

DawsonCanyon Rd

Stre

et o

f the

Gol

den

Lant

ern

Irvine

Ave

Lincoln Ave

Oso Pkwy

Carson St Cajalco Rd

Carbo

nCan

yon R

d

Harbor Blvd

Mockingbird

Canyon Rd

Imperial Hwy

Beac

h Bl

vddvl

B hcaeB

Pacific Coast Hwy

Pacific Coast Hwy

Orte

ga H

wy

Lake

wood

Blvd

7th St

Imperial Hwy

La

gun a C

anyo

n R

d

Mac

arth

ur B

lvd

Orange Frw

y

Costa

Mesa F

rwy

Cos

ta M

esa

Frw

y

Garden Grove Frwy

Newpo

rt Fr

wy

Lagu

naFr

wy

Artesia Frwy

Riversid

e Frwy

San Diego Frwy

Santa Ana Frwy

San Joaquin Hills Corridor

Corona Del M

ar Frw y

FullertonMunicipalAirport

John WayneAirport

Long Beach Airport

RiversideMunicipal

Airport

CoronaMunicipal

Airport

LosAlamitos

Santa FeSprings

Artesia

PortolaHills

RanchoSanta

Margarita

Coto DeCaza

Brea

La Habra

Fullerton

YorbaLinda

Placentia

BuenaPark

Anaheim

Orange

VillaPark

GardenGrove

TustinFoothillsSeal

BeachSantaAna

Westminster

HuntingtonBeach

Tustin

FountainValley

CostaMesa El Toro

TrabucoHighlandsNewport

Beach MissionViejo

Irvine

LagunaHills

LagunaBeach

AlisoViejo

LagunaNiguel

San JuanCapistrano

SouthWhittier

Norwalk La Mirada

BellflowerCerritos

LongBeach

Norco

CoronaHome

Gardens

ElCerrito

OrangeCounty

RiversideCounty

San DiegoCounty

91

55

55

133

133

133

73

73

91

241

241261

241

74

7172

72

57

1991

91

22 22

39

39

3990

14290

1

1

83 91

5

5

15

15

5

405

605

105

1530 N COAST HWY

1530 N COAST HWY


8 NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353

Offering SummaryNORTH COAST APARTMENTS

Price $3,799,000

Number of Apartment Units 5*

Number of Retail Suites 1

Net Rentable Square Feet (Estimate) 4,400

Number of Floors 3

Year Built 1962

Lot Size (Square Feet) 4,200


NOTES: *One unit is split into two units

Property Description

Property OverviewBuilt in 1962, North Coast Apartments is situated on a 4,200 square foot lot and consists of approximately 4,400 net rentable square feet. The property includes three*, one bed/one bath units, one, one bed/two bath unit, one, two bed/two bath unit and a retail suite with ocean views. The property also includes four covered parking spaces, an on-site laundry facility, and spacious patios with panoramic ocean views (some units).

Nearby beaches include Crescent Bay, Shaws Cove, and Fisherman’s Cove and nearby parks include Crescent Bay Point Park and Boat Canyon Park. The property is also located just over one-mile from Main Beach Laguna, the largest and most popular stretch of beach in Laguna. The area surrounding Main Beach includes a number of world famous art festivals and premier dining and shopping locations.


NOTES*One unit is split into two units.


Property SummaryTHE OFFERINGName North Coast Apartments

Address 1530 North Coast Highway

City Laguna Beach

State CA

Zip 92651

Assessor's Parcel Number 053-121-19

SITE DESCRIPTIONNumber of Dwelling Units 5*

Number of Retail Suites 1

Year Built 1962

Net Rentable Square Feet 4,400

Number of Floors 3

Parcel Size 4,200 Square Feet

Parking 4 Covered Spaces

Financial Analysis

NOTES/ASSUMPTIONS(1) Owner and Broker make no representation as to the actual square footage of any units. Prospective purchasers are encouraged to independently confirm the measurement of all units.*One unit is split into two units.

UNIT TYPE NO. OF UNITS

ESTIMATEDSQ. FT. (1)

CURRENT RENT/UNIT

CURRENT RENT/SF

CURRENTRENT/MONTH

MARKET RENT/UNIT

MARKET RENT/SF

MARKET RENT/MONTH

1 Bed/1 Bath Small 1 500 $1,575 $3.15 $1,575 $2,000 $4.00 $2,000

1 Bed/1 Bath Downstairs 1 600 $1,675 $2.79 $1,675 $2,150 $3.58 $2,150

1 Bed/1 Bath Balcony 1 600 $2,475 $4.13 $2,475 $2,475 $4.13 $2,475

1 Bed/2 Bath Penthouse 1 1,050 $3,500 $3.33 $3,500 $4,000 $3.81 $4,000

2 Bed/2 Bath Balcony 1 900 $2,850 $3.17 $2,850 $3,500 $3.89 $3,500

Retail Suite 1 750 $2,350 $3.13 $2,350 $2,350 $3.13 $2,350

TOTALS: 6* 4,400 $14,425 $16,475

BUILDING DATAAddress 1530 North Coast Highway

City, State and Zip Laguna Beach, CA 92651

Number of Units 5*+1 Retail Suite

Approx. Net Rentable SF 4,400

Lot Size 4,200 Square Feet

Year Built 1962

FINANCIAL INDICATORSPrice $3,799,000

Down 100% / $3,799,000

Price/Unit $633,167

Price/Gross SF $863.41

Current CAP 3.05%

Market CAP 3.68%

Current GIM 21.80

Market GIM 19.10

Ownership Fee Simple

INCOME CURRENT MARKETTOTAL PER UNIT TOTAL PER UNIT

GROSS POTENTIAL RENT $173,100 $28,850 $197,700 $32,950

Total Other Income $1,200 $200 $1,200 $200

GROSS POTENTIAL INCOME $174,300 $29,050 $198,900 $33,150

Less Vacancy Allowance (GPR) 3.0% / $5,193 $866 3.0% / $5,931 $989

EFFECTIVE GROSS INCOME $169,107 $28,185 $192,969 $32,162

Financial Summary

EXPENSES CURRENT MARKETTOTAL PER UNIT TOTAL PER UNIT

Real Estate Taxes (1.0172%+$3,251) $41,894 $6,982 $41,894 $6,982

Insurance $2,460 $410 $2,460 $410

Utilities $2,745 $458 $2,745 $458

Repairs & Maintenance $3,750 $625 $3,750 $625

General & Administrative $1,250 $208 $1,250 $208

Reserves & Replacements $1,250 $208 $1,250 $208

TOTAL EXPENSES $53,349 $8,892 $53,349 $8,892

Expenses per SF $12.12 $12.12

Percent of EGI 31.6% 27.7%

NET OPERATING INCOME $115,758 $19,293 $139,620 $23,270


Market Comparables

Rent Comparables Map1530 NORTH COAST HIGHWAY

1 1290 North Coast Highway

2 453 Cypress Drive


2

3

1

4

5

6

4 240 Cajon Street




Rent Comparables1290 NORTH COAST HIGHWAYLaguna Beach, CA 92651 1

UNIT TYPE SQUARE FEET MARKET RENT RENT PSF1 Bed/1 Bath 525 $2,095 $3.99

1 Bed/1 Bath 600 $2,395 $3.99

Retail (Leased in 2015) 700 $2,245 $3.21

Units: 4 + 1 Retail Suite Year Built: 1955

NORTH COAST APARTMENTS1530 North Coast Highway, Laguna Beach, CA 92651

UNIT TYPE SQUARE FEET CURRENT RENTS RENT PSF1 Bed/1 Bath Small 500 $1,575 $3.15

1 Bed/1 Bath Downstairs 600 $1,675 $2.79

1 Bed/1 Bath Balcony 600 $2,475 $4.13

1 Bed/2 Bath Penthouse 1,050 $3,500 $3.33

2 Bed/2 Bath Balcony 900 $2,850 $3.17

Retail Suite 750 $2,350 $3.13

Units: 5* + 1 Retail Suite Year Built: 1962

Subject Property



453 CYPRESS DRIVELaguna Beach, CA 92651 2


Units: 4 Year Built: 1946

1570 NORTH COAST HIGHWAYLaguna Beach, CA 92651 3




Rent Comparables1208 NORTH COAST HIGHWAYLaguna Beach, CA 92651 5


Unit: Upper Unit Year Built: 1950

240 CAJON STREETLaguna Beach, CA 92651 4

UNIT TYPE SQUARE FEET MARKET RENT RENT PSFStudio 400 $1,650 $4.13

1 Bed/1 Bath 500 $2,275 $4.55

2 Bed/1 Bath 800 $3,250 $4.06



649 NORTH COAST HIGHWAYLaguna Beach, CA 92651 6




2

1

3


Market Comparables Map1530 NORTH COAST HIGHWAY

1 2037 South Coast Highway

2 445 Cypress Drive

3 259 Pearl Street

Status: Active

List Price: $3,799,000

Year Built: 1962

Units: 5* + 1 Retail Suite

Price/Unit: $633,167

Approx. Net Rentable SF: 4,400

Price/NRSF: $863.41

CAP Rate (Current/Market): 3.05%/3.68%

GIM (Current/Market): 21.80/19.10

Unit Mix3 1 Bed/1 Bath

1 1 Bed/2 Bath

1 2 Bed/2 Bath

1 Retail Suite

NORTH COAST APARTMENTS1530 N Coast Hwy, Laguna Beach, CA 92651


Market Comparables


Status: Under Contract


Year Built: 1974

Units: 6



Price/NRSF: $825.17

CAP Rate: 3.09%

GIM: 21.45

Unit Mix5 Studio

1 2 Bed/1 Bath

445 CYPRESS DRIVELaguna Beach, CA 92651 2


List Price: $11,995,000

Year Built: 1969

Units: 14 + 2 Retail Suites



Price/NRSF: $1,172.19

CAP Rate: 2.27%

GIM: 18.06

Unit Mix10 1 Bed/1 Bath

4 2 Bed/1 Bath

2 Retail

2037 SOUTH COAST HIGHWAYLaguna Beach, CA 92651 1



Year Built: 1939

Units: 5



Price/NRSF: $1,079.61

CAP Rate: 3.20%

GIM: 20.75

Unit Mix2 Studio

2 1 Bed/1 Bath

1 3 Bed/2 Bath

259 PEARL STREETLaguna Beach, CA 92651 3

Market Overview

Submarket: Laguna BeachAPARTMENT FUNDAMENTALS:North Coast Apartments are situated in Laguna Beach, one of the most affluent housing markets in Southern California where the median home value is over $1,750,000 and the average household income is 54 percent higher than the Orange County average. In 2016 approximately 49 percent of Laguna Beach households earned $100,000 or more. According to the California Department of Finance, 26.5 percent of the housing units in Laguna Beach are multifamily homes.

LAGUNA BEACH SUMMARY:The City of Laguna Beach, incorporated in 1927, is located in southwest Orange County, roughly 55 miles southeast of Los Angeles and 70 miles north of San Diego. The City occupies 8.84 square miles and serves a population of approximately 24,000. Laguna Beach attracts more than six million visitors annually who come for its miles of coastline, Mediterranean climate, and the summer art festivals including Pageant of the Masters and the Festival of the Arts.

Sources: MPF Research, Apartments.com, Nielsen Co., California Department of Finance

27

Demographic Snapshot

Sources: Marcus & Millichap Research Services, Experian, Inc., Alteryx

2016 ESTIMATE 1 MILE 3 MILES 5 MILESTotal Population 5,369 19,839 79,059

Total Households 2,807 9,422 33,177

Median Household Income $91,407 $104,380 $111,827

Average Household Income $162,621 $177,884 $171,691

Median Age 45.0 49.2 43.2

Vacancy 10.50% 9.54% 4.68%

The chart below features demographic data at 1, 3, and 5 miles from 1530 North Coast Highway.

2016 ESTIMATE LAGUNA BEACH ORANGE COUNTYTotal Population 24,388 3,193,343

Total Households 11,772 1,065,122

Median Household Income $101,955 $77,194

Average Household Income $170,383 $110,596

Median Age 50.3 37.3

Vacancy 10.77% 1.85%

Median Home Value (2010) $1,825,000 $526,582


Source: https://media-cdn.tripadvisor.com/media/photo-o/04/a5/d7/5a/coastline-view-of-main.jpg

29

EXCLUSIVELY LISTED BYKURT M. HEDIGER

Senior AssociateNewport Beach OfficeTel: 949-419-3226Email: [email protected] License: 01846649

TYLER C. LEESON

Senior Managing DirectorNewport Beach OfficeTel: 949-258-4539Email: [email protected] License: 01451551

MATTHEW J. KIPP

Vice President InvestmentsNewport Beach OfficeTel: 949-419-3254Email: [email protected] License: 01364032

DANIEL E. RABIN

Financial AnalystNewport Beach OfficeTel: 949-419-3306Email: [email protected] License: 01945571

ASHLEY A. SANCHEZ

Transaction CoordinatorPhoenix OfficeTel: 949-419-3219Email: [email protected]

NORTH COAST APARTMENTS - LoopNet€¦ · to present the opportunity to acquire North Coast...

Documents

Transcript of NORTH COAST APARTMENTS - LoopNet€¦ · to present the opportunity to acquire North Coast...