S NEW HAMPSHIRE AVE · 2017-09-11 · LOCATED IN UP AND COMING KOREATOWN • 36 parking spaces...
Transcript of S NEW HAMPSHIRE AVE · 2017-09-11 · LOCATED IN UP AND COMING KOREATOWN • 36 parking spaces...
UNIQUE PARCEL SIZE AND OWNERSHIP OPPORTUNITY
625625S NEW HAMPSHIRE AVE
AFFILIATED BUSINESS DISCLOSURECBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management 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 successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest 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 AGREEMENTYour receipt of this Memorandum constitutes your acknowledgment 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 Memorandum in any manner detrimental to the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.
DISCLAIMERThis 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 prospective 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” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating 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 measurements 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. Additional 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 completeness 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 negotiations 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.
© 2020 CBRE, Inc. All Rights Reserved.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY................4
MARKET OVERVIEW .................... 6
SUBMARKET OVERVIEW ............ 9
PROPERTY INFORMATION ........ 11
SALES COMPARABLES .............. 12
MARKET TRENDS ........................ 14
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CBRE has been retained on an
exclusive basis to present an
opportunity to acquire prime property
suitable for investment, development
or occupancy by an owner/user. The
property will be sold without any long
term leases in place and the YMCA will
vacate 30 - 90 days following close of
escrow.
The offering consists of two separate
parcels that will be sold together - a
two story office building consisting
of approximately 18,000 square feet
(per public record the building is
approximately 24,256 square feet
- buyer to verify all square footage
figures) located on approximately 9,790
square feet of land and an adjacent
parking lot consisting of approximately
8,427 square feet of land.
EXECUTIVE SUMMARY
625625S NEW HAMPSHIRE AVE
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INCOME OR OWNER-USER PROPERTY FOR THE UNIQUE INVESTOR
• Excellent opportunity to purchase an iconic multi-use asset in the heart of Koreatown.
• The YMCA will vacate the property 30 - 90 days following the close of escrow allowing a buyer to redevelop the property, reposition the property for a new lease, or occupy the property as an owner/user.
• Ability to escalate rents from the current submarket rates
LOCATED IN UP AND COMING KOREATOWN • 36 parking spaces on-site with great access to Wilshire
Boulevard
• Located at the intersection of Wilshire Boulevard and Vermont Avenue, two of the busier streets in the greater Downtown Los Angeles area.
HIGH DENSITY DEMOGRAPHICS• Over 1.2 million people in a 5-mile radius with an Average
Household Income exceeding $72,000
• Surrounded by thoroughfares and highly trafficked streets and within a 5-mile radius of over 700,000 employed individuals
HIGH VISIBILITY OWNERSHIP OPPORTUNITY• Situated on South New Hampshire, a few blocks from both
Wilshire Boulevard and Vermont Avenue
• Unique building and lot size with an opportunity to add significant value
OFFERING PRICE $6,995,000 ($288/SF or $388/SF)
APNs5502-026-0045502-026-013
BUILDING SIZE+/- 24,256 SF (Per Public Record)
+/- 18,000 (Per YMCA)
YEAR BUILT 1958
ZONINGBuilding: LAC2
Land: LAR5P
CURRENT OCCUPANCYThe YMCA will vacate the property
30 - 90 days following close of escrow.
PARCEL SIZE +/- 18,217 SF
PARKING 36 Spaces (1.5/1,000 or 2/1,000)
ASSET SUMMARY INVESTMENT HIGHLIGHTS
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139,600
115,600
86,200
74,100
74,000
61,800
50,100
38,400
29,800
19,000
New York
Dallas
Houston
Los Angeles
Chicago
Miami
Atlanta
Philadelphia
Washington, DC
Boston
Source: California Employment Development Department February 2020
29% OF NATIONWIDE APPAREL COMPANIES
Source: Bureau of Labor Statistics, Q2 2019.
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Long Beach has deepest shipping channel in North America
Source: CBRE Scoring Tech Talent 2019
PORTS OF LA/LONG BEACH HANDLES:
West coast cargo volume
share of the national port market
32% 73%
#4CITY WITH THE LARGEST JOB
GROWTH
UNEMPLOYMENT: 4.5% of labor force in February 2020
ECONOMIC OPPORTUNITIES
GDP/MANUFACTURING
FILM INDUSTRY: 131,600 jobs in LA County
Exceeds next 10 metro areas combined by 50,000
TOP 10 MARKET FOR TECH EMPLOYMENT
#3 TECH DEGREE COMPLETIONS
342,700 Manufacturing Jobs
Most apparel manufacturing establishments in the United States
PORTS OF LA &LONG BEACH 1,936 Los Angeles County
616 New York County
212 King’s County
206 Orange County
$1.0T Metro GDP
3RD Most patents in the U.S.
2ND Largest economy by GDP in the U.S.
GROWTH RANKS
(Of Top 10 Metro by Population in US)
TECH
TECHLOGISTICS TOURISM
TOP 3 PRIVATE SECTOR INDUSTRIES
MARKET OVERVIEW
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POPULATION TRENDS
RESIDENTS COLLEGES & UNIVERSITIES
STUDENTS
10.25M 102
711,368Source: Esri, CBRE Research, 2019
Estimated by Census Tract, 2019
45,687 9,618
44,027 7,710
41,319 2,238
POPULATION TRENDS HIGHER EDUCATION
Less than 1,000
1,000 – 8,400
8,400 – 15,800
15,800 – 24,000
Greater than 24,000
POPULATION DENSITY PER SQ. MI.
White 48.6%African American 8.2%Asian 15.0%American Indian or Alaska Native 0.7%Pacific Islander 0.3%Other Race 22.4%Two+ Races 4.9%
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LA has biggest BIKESHARE SYSTEM in the nation.
METRO
Blue Line
Red Line
Green Line
Gold Line
Purple Line
Expo Line
UNDER CONSTRUCTION/PROPOSED Regional Connector (2021)
Purple Line Section 1 (Western to La Cienega)(2023)
Purple Line Section 2 (La Cienega to Century City)(2025)
Purple Line Section 3 (Century City to Westwood)(2027)
Crenshaw/LAX Line (Exposition to LAX)(2020)
Gold Line Foothill Extension (Azusa to Montclair)(2025)
Green Line Extension (Redondo Beach to Torrance)(2027)
Los Angeles Streetcar (2020)
MAJOR PROJECTS / INITIATIVESCrenshaw/LAX Transit Project: 8.5 mile lightrail from Expo
to Green Line; connects to Automated People Mover once
completed in 2023
(project opens 2020)
Regional Connector Transit Project: 1.9 mile alignment from
Blue Line to Gold Line (project opens 2021)
Purple Line Extension Section 1: 3.9 mile heavy rail line
beginning at Wilshire/Western station extending west (project
opens 2023)
Purple Line Extension Section 2: 2.6 mile heavy rail line
continues Purple Line from Miracle Mile into Century City (project
opens 2025)
Purple Line Extension Section 3: 2.6 mile westward extension
from Century City/Constellation station to Westwood (project
opens 2027)
$120B invested in rail lines, bus networks, carpool lanes and transportation demand management over the next 40 YEARS.
The Crenshaw/LAX Line and LAX People Mover arriving in 2023 will SIGNIFICANTLY IMPROVE AIRPORT ACCESS
LA has the most publicly available ELECTRIC VEHICLE CHARGING STATIONS
TRANSPORTATIONRAIL LINES
Amtrak California
Metrolink Ventura
Metrolink San Bernardino
Metrolink Riverside
Metrolink O.C.
Metrolink Antelope Valley
Metrolink I.E.– O.C.
Metrolink 91 Freeway
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WILSHIRE/VERMONT THE VERMONT 515 SHATTO PLACE
Koreatown is a neighborhood in Central Los Angeles, California, centered near Eighth Street and Irolo Street, west of MacArthur Park. The rectangular area covers about 150 blocks, spanning 10 streets and 15 avenues (east-west). Koreans began immigrating in larger numbers in the 1960s and found housing in the Mid-Wilshire area. Many opened businesses as they found rent and tolerance towards the growing Korean population. Many of the historic Art deco buildings with terra cotta facades have been preserved because the buildings remained economically viable for the new businesses. Today, Koreatown is quickly becoming one of LA’s most popular neighborhoods; David Chang, world-renowned chef and founder of the Momofuku Restaurant Group, has called it the “most exciting place to eat in America.”
Koreatown is the most-densely populated district by population in Los Angeles County, with 120,000 residents in 2.7 square miles. Despite the name evoking a traditional ethnic enclave, the community is complex and has an impact on areas outside the traditional boundaries. While the neighborhood culture has historically been oriented to the Korean immigrant population, Korean business owners are creating stronger ties to the Latino community in Koreatown. The community is highly diverse ethnically, with half the residents being Latino and a third being Asian. Two-thirds of the residents were born outside of the United States, as a high figure compared to the rest of the city.
This city of perpetual sunshine and good vibes has taken the word “sprawl” and transformed it into its biggest advantage. Because L.A.’s charms are not easily accessible, they’re discovered with an open mind, patience, and time spent in each of its many enclaves. From the ocean to the valleys, each neighborhood has its own distinct personality - with plenty of things to do. But shared in every corner of this city is that starry-eyed notion of starting fresh, and many of its neighborhoods have lived different lives over the decades. Only fitting for a city always gleaming with the promise of reinvention.
Los Angeles is one of the most substantial economic engines within the United States, with a diverse economy in a broad range of professional and cultural fields. Los Angeles is also famous as the home of Hollywood, a major center of the world entertainment industry. A global city, it has been ranked 1st in the Global Cities Index and 12th in the Global Economic Power Index. The Los Angeles combined statistical area also has a gross metropolitan product of $941 billion (as of 2018), making it the third-largest in the world, after the Tokyo and New York metropolitan areas. Los Angeles hosted the 1932 and 1984 Summer Olympics and will host the event for a third time in 2028.
LOS ANGELES OVERVIEW KOREATOWN OVERVIEW
424,500 SF MIXED USED – OFFICE,
RETAIL & APARTMENTS
500,000 SF MIXED USE – OFFICE,
RETAIL & APARTMENTS
18,100 SF OFFICE UNDER RENOVATION
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DEMOGRAPHICSApproximately 1,282,403 people reside within a five-mile radius of
the Property. Within a five-mile radius of the Property, more than 34%
of residents have earned a bachelor’s degree of higher. The median
age is 35, exemplifying the young educated labor pool available.
More than 46% of household incomes within a five-mile radius of the
Property are $50,000 or greater, with an average household income
of over $72,414.
1 MILE 3 MILE 5 MILE
POPULATION
2019 Estimated Population 140,036 650,851 1,282,403
2024 Projected Population 146,852 682,461 1,331,992
2010 Census Population 130,393 605,521 1,202,070
Growth 2010-2019 0.77% 0.78% 0.70%
Growth 2019-2024 0.96% 0.95% 0.76%
2019 HOUSEHOLD INCOME
$75,000-$99,999 4,443 (8.2%) 21,693 (8.8%) 45,688 (9.6%)
$100,000-$149,999 3,636 (6.7%) 22,254 (9.1%) 50,111 (10.5%)
$150,000 and over 1,893 (3.5%) 20,490 (8.4%) 50,007 (10.5%)
TOTAL (ESTIMATED)
2019 Median HH Income $37,341 $40,254 $45,161
2019 Avg HH Income $50,787 $64,436 $72,414
2019 Households 54,159 245,275 475,439
2019 Avg Housing Value $745,116 $942,933 $899,946
2019 Avg Household Size 2.57 2.58 2.61
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PROPERTY PROFILESOWNER INFORMATION PROPERTY CHARACTERISTICS
PRIMARY OWNER YOUNG MENS CHRISTIAN ASSN OF METROPOLITAN L A
YEAR BUILT 1958
MAIL ADDRESS 625 S NEW HAMPSHIRE AVE, LOS ANGELES CA 90005 SQUARE FEET 24,256 SF (per Public Record)18,000 SF (per YMCA)
SITE ADDRESS 625 S NEW HAMPSHIRE AVE, LOS ANGELES CA 90005 LOT SIZE 9,790 SF
ASSESSOR PARCEL NUMBER 5502-026-004 NUMBER OF UNITS 1
CENSUS TRACT 2121.01 NO OF STORIES 2
LOT NUMBER 4 PROPERTY TYPE Commercial Office
PAGE GRID 634-A2 USE CODE Office Bldg (General)
LEGAL DESCRIPTION Lot: 4 Block: 7 Abbreviated Description: LOT:4 BLK:7 COPENHAGEN TRACT S 5.8 FT EX OF ST OF LOT 4 AND EX OF ST LOT 5 AND N 17.1 FT EX OF ST OF LOT 6 BLK 7
ZONING LAC2
OWNER INFORMATION PROPERTY CHARACTERISTICS
PRIMARY OWNER YOUNG MENS CHRISTIAN ASSN OF METROPOLITAN L A SQUARE FEET Not Applicable
MAIL ADDRESS 625 S NEW HAMPSHIRE AVE, LOS ANGELES CA 90005 LOT SIZE 8,427 SF
SITE ADDRESS LOS ANGELES CA 90005 NUMBER OF UNITS 0
ASSESSOR PARCEL NUMBER 5502-026-013 NO OF STORIES 1
CENSUS TRACT 2121.01 GARAGE Currently striped for 36 spaces
LOT NUMBER 20 USE CODE Parking Lot
LEGAL DESCRIPTION Lot: 20 Block: 7 Abbreviated Description: LOT:20 BLK:7 COPENHAGEN TRACT N 13.1 FT EX OF ST OF LOT 20 AND EX OF ST LOT 21 BLK 7
ZONING LAR5P
PARCEL MAP 1ST FLOOR - FLOOR PLAN 2ND FLOOR - FLOOR PLAN
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2700 W 3RD ST | MID-WILSHIRE
SALE PRICE: $2,650,000 LAND SIZE: 13,504 SF
SALE PRICE PER BLDG SF: $336.34/SF BLDG SIZE: 7,879 SF
SALE DATE: Sept 11, 2017 ZONING: C2 LA, R4 Parking
3923 W 6TH ST | MID-WILSHIRE
SALE PRICE: $7,475,000 LAND SIZE: 9,583 SF
SALE PRICE PER BLDG SF: $234.22/SF BLDG SIZE: 31,914 SF
SALE DATE: March 14, 2017 ZONING: C2
2500 W 7TH ST | MID-WILSHIRE
SALE PRICE: $5,500,000 LAND SIZE: 14,000 SF
SALE PRICE PER BLDG SF: $268.29/SF BLDG SIZE: 20,500 SF
SALE DATE: May 9, 2017 ZONING: LAC2
2416-2422 W 7TH ST | MID-WILSHIRE
SALE PRICE: $3, 215,000 LAND SIZE: 6,970 SF
SALE PRICE PER BLDG SF: $258.52/SF BLDG SIZE: 12,436 SF
SALE DATE: April 23, 2018 ZONING: C2
2801 E 6TH ST | MID-WILSHIRE
SALE PRICE: $7,800,000 LAND SIZE: 32,104 SF
SALE PRICE PER BLDG SF: $227.57/SF BLDG SIZE: 34,275 SF
SALE DATE: Aug 20, 2018 ZONING: C2
Subject Property
SALES COMPARABLE OVERVIEW
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Subject Property
2525 W 8TH ST | MID-WILSHIRE
SALE PRICE: $5,200,000 LAND SIZE: 31,504 SF
SALE PRICE PER BLDG SF: $232.31/SF BLDG SIZE: 22,384 SF
SALE DATE: Jan 4, 2017 ZONING: C2
616 S WESTMORELAND | MID-WILSHIRE
SALE PRICE: $8,300,000 LAND SIZE: 16,997 SF
SALE PRICE PER BLDG SF: $358.24/SF BLDG SIZE: 23,169 SF
SALE DATE: Nov 15, 2017 ZONING: C1-4
2501-2511 W 7TH ST | MID-WILSHIRE
SALE PRICE: $4,650,000 LAND SIZE: 7,841 SF
SALE PRICE PER BLDG SF: $281.58/SF BLDG SIZE: 16,514 SF
SALE DATE: Unknown ZONING: LAC2
971 S HOOVER ST | MID-WILSHIRE
SALE PRICE: $1,450,000 LAND SIZE: 9,448 SF
SALE PRICE PER BLDG SF: $374.19/SF BLDG SIZE: 3,875 SF
SALE DATE: Nov 22, 2016 ZONING: R3
3755 BEVERLY BLVD | MID-WILSHIRE
SALE PRICE: $2,700,000 LAND SIZE: 23,958 SF
SALE PRICE PER BLDG SF: $418.28/SF BLDG SIZE: 12,910 SF
SALE DATE: April 18, 2017 ZONING:LAC2, LACM,TIER4, SNAP C
SALES COMPARABLE OVERVIEW
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CONTENT IS KING - THE CHANGING LANDSCAPE
HOLLYWOOD
$15B2019 INVESTMENT IN ORIGINAL CONTENT
PLAYA VISTA
$1B2019 INVESTMENT IN ORIGINAL CONTENT
CULVER CITY
$6B2019 INVESTMENT IN ORIGINAL CONTENT
SANTA MONICA
$3B2019 INVESTMENT IN ORIGINAL CONTENT
TOP 5CONTENT CREATORS ARE LOCATED IN LA
$25BTOTAL 2019
INVESTMENT
OF LEASES SIGNED BY TECH TENANTS IN THE LAST 5 YEARS
LEASED BY APPLE AND AMAZON OVER THE LAST 2 YEARS
5M SF 930K SF
LA IS THE EPICENTER OF ORIGINAL CONTENT CREATION
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RAPID GROWTH & EXPANSION OF CONTENT CREATORS
Netflix and Other Streaming Companies Fueling CRE in L.A.–Bisnow
New leases give Apple a large footprint in Los Angeles for content push–Apple Insider
Facebook closes on 260k sf at the Brickyard … the social media company will expand its current space fivefold–The Real Deal
Amazon Expands Footprint in Culver City, Takes Entire Office Space at Culver Steps Developments–The Hollywood Reporter
HBO Picks $350M Culver City Project for New HQ– Commercial Property
Executive
Amazon Doubles Entertainment Footprint in Los Angeles Culver Studios Project–Costar News
HBO moving headquarters to Culver City Ivy Station megaproject–LA Curbed
Netflix to dramatically expand. Footprint, Taking Lease on Entire New 13-story Building in Hollywood–Variety
Google will lease all of massive Westside Pavilion amid redevelopment–The Real Deal
Netflix Grabs More L.A. Real Estate Signing lease for 355,000 SF at Academy on Vine Site–Variety
Over the last five years, the entertainment industry’s annual budgets for new original content have increased by $30 billion.
1.2 M SF
1 M SF
800K SF
600K SF
400K SF
200K SF
0 SF
$15B
$6B$1B
$1B
$3B
$2B<$1B
1) Apple is believed to be in discussions for an additional 115,000 SF in Culver City 2) HBO to announce its move from Santa Monica to Culver City pending completion of 200,000 SF lease at Ivy Station3) YouTube TV was a dominant business line in Google’s Spruce Goose expansion in Playa Vista
2018 ORIGINAL CONTENT BUDGETFOOTPRINT IN 2012 FOOTPRINT IN 2018 IN THE MARKET
2019 ORIGINAL CONTENT BUDGET
Among the most aggressively growing office tenants on the Westside are the original content production companies and technology firms with a focus on creating content for the $2 trillion streaming and traditional TV/media industry.
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MAJOR TENANTS ATTRACTING TOP TALENT
DOWNEY
BURBANK
NORWALK
GLENDALE
PASADENA
INGLEWOOD
GARDENA
COMPTON
WESTMONT
LAWNDALE
ALTADENA
ALHAMBRA
ROSEMEAD
HAWTHORNE
MONTEBELLO
BELLFLOWER
SOUTH GATE
PLAYA VISTA
CULVER CITY
WILLOWBROOK
PICO RIVERA
BELL GARDENS
SANTA MONICA
MARINA DEL REY
MONTEREY PARK
BEVERLY HILLS
MANHATTAN BEACH
HUNTINGTON PARK
ENCINO
RESEDA
VAN NUYS
HOLLYWOOD
HYDE PARK
EL SEGUNDO
SUN VALLEY
SHERMAN OAKS
DOWNTOWN LOS ANGELES
SANTA FE SPRINGS
WEST LOS ANGELES
LA CANADA FLINTRIDGE
§̈¦405
§̈¦5
§̈¦710
§̈¦605
§̈¦10
§̈¦110
§̈¦10
£¤101
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JEFF PIONVice ChairmanLic. 00840278 +1 310 550 [email protected]
© 2020 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. All marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.
CONTACT:
MICHELLE ESQUIVELExecutive Vice PresidentLic. 01290582+1 310 550 [email protected]
DREW PIONAssociateLic. 02085229+1 310 550 [email protected]
625625S NEW HAMPSHIRE AVE