511 ocean front walk venice · gem markett ghery partners youtube 72andsunny naritiv within signal...

V082218

INDUSTRYPARTNERS.COM310 395 5151CA BRE No. 01900833

SCOTT [email protected] BRE No. 01252835

ANDREW [email protected] BRE No. 01275687

RICH [email protected] BRE No. 02009527

MULTI-FAMILY 10 UNITS—± 700 SF/EA

GROUND FLOOR RETAIL2 UNITS—± 740 SF/EA

VALUE-ADD INVESTMENT FOR SALE

511 OCEAN FRONT WALK VENICEPRICE REDUCTION

INDUSTRYPARTNERS.COM 310 395 5151 CA BRE NO. 01900833 V082218 2

FOR SALE RESIDENTIAL | RETAIL 511 OCEAN FRONT WALK VENICE CA 90291 INVESTMENT OVERVIEW

511

Ocean Front Walk

Paloma Ct

Speedway


FOR SALE RESIDENTIAL | RETAIL 511 OCEAN FRONT WALK VENICE CA 90291 INVESTMENT OVERVIEW

Rare opportunity to acquire an income-generating mixed use building

SUMMARY INVESTMENT HIGHLIGHTS

10 one bed/one bath units in one of the most desirable areas in Los Angeles, with ground floor ocean front retail

At the second most visited tourist attraction in LA

One of the fastest growing housing and rental markets

Affluent neighborhood with strong demographics

PRICE REDUCTION

$11,950,000

$11,450,000

AREA

9,456 Total SF (Assessor)PRICE PER SF

$1,264

$1,211

CURRENT NOI

$323,759

*5/10 apartments vacant to provide buyer with the opportunity to upgrade and raise rents significantly.

PRO-FORMA NOI

$428,490

INDUSTRY PARTNERS, as an exclusive agent for the ownership, is pleased to present the once in a lifetime opportunity to acquire 511 Ocean Front Walk. Rare opportunity to own a mixed-use building with remarkable upside potential.


FOR SALE RESIDENTIAL | RETAIL 511 OCEAN FRONT WALK VENICE CA 90291 INVESTMENT HIGHLIGHTS

Irreplaceable beachfront location, facing Ocean Front Walk

The property provides unobstructed ocean views and direct access to the beach.

Ocean Front Walk is a busy touristic destination for both local an international visitors. Between 28,000 and 30,000 visit the area every day!

The highly visible building has tremendous potential for value-add redevelopment, and takes advantage the increasingly attractive market conditions


FOR SALE RESIDENTIAL | RETAIL 511 OCEAN FRONT WALK VENICE CA 90291

Zefr

RedbullRiot Games

Awesomeness

Psyop

Gem

Markett

Ghery Partners

Youtube

72andSunny

Naritiv

Within

Signal Sciences

Apple Beats

Buzz Feed

Apple

IMAX

facebook

Google

Whisper

Vice Media

Lionsgate

Amazon

Oracle

TBWA/Chiat/Day

Deutsch

Amazon

Seriously

Ignition Creative

Google

Nike

Parachute

System1

ParachuteYahoo

1 MILE

TECH COMPANIES FOUNDED IN VENICE / FUNDING

INVESTMENT HIGHLIGHTS

Silicon Beach Overview

Dubbed “Silicon Beach” for the strong concentration of technology, entertainment, and digital media industries that are located in the area stretching between Playa Vista, Culver City, Marina del Rey, Venice, and Santa Monica, the area is rapidly emerging as the center of the technology industry in Southern California.

These coastal communities have become a magnet for entrepreneurial startups in recent years, serving as the location of choice for leading corporations including Snapchat, Facebook, Apple, Amazon, Google, Sony, Fox Interactive Media, The Honest Company, IMAX, Microsoft, YouTube, Vevo, Yahoo!, Belkin, Electronic Arts, Riot Games, and Gamefly. These rapidly expanding companies have made Silicon Beach one of the premier office locations in Los Angeles, which has served to supercharge lodging and residential uses as well.



Affluent neighborhood with strong demographics

Venice spans 3.1 square miles and is home to a diverse population of over 40,000 people. The City is bordered by the Pacific Ocean to the southwest, Marina del Rey to the southeast, Culver City to the east, Mar Vista to the northeast, and the city of Santa Monica to the north.

The area’s beachy-yet-urban feel has attracted many tech and media tenants to the area, resulting in an economic boom like Venice hasn’t seen in decades.

The rapid economic renaissance translated to an increase in housing prices—among the highest in the Westside of Los Angeles— but also a broader range of amenities and a transformation that brought a new group of affluent, young and highly-skilled workers to the area.

INVESTMENT HIGHLIGHTS

SANTAMONICA

VENICE

MARINADEL REY

PLAYAVISTA

CULVERCITY

AREA

Venice Santa Monica Marina Del Rey Playa Vista Culver City LA County

AVERAGE HH INCOME

$121,265 $119,008 $132,266 $120,652 $94,312 $81,225

MEDIAN HOME VALUE

$1,558,700 $1,398,900 $1,398,900 $943,900 $948,500 $574,400

BA OR HIGHER

68% 73% 76% 75% 58% 30%



Venice Market Overview

Venice is one of the most sought-after residential and retail locations. Boasting an exceptional amenity base and proximity to the beach, while quality apartment buildings in Venice are limited.

The Venice residential and retail market will continue to be in high demand. Venice residential market has the second highest residential rents in all of the Los Angeles region exceeding $4,000 per room, according to Zumper. Meanwhile, retail rental rates continue to rise in the mid to high teens on a price per square foot basis.

MARKET OVERVIEW


FOR SALE RESIDENTIAL | RETAIL 511 OCEAN FRONT WALK VENICE CA 90291 LEASE COMPS

511 OFW

1349-1357 Abbot Kinney Blvd1121 Abbot Kinney Blvd

514 Sunset Ave

1410 Abbot Kinney Blvd

542 Grand Blvd

2341 Beach Ave #1/2


35 Clubhouse #F

8 Brooks Ave

10 19th Ave

TENANT NAME ADDRESS TYPE SF TERM (MOS.) COMMENCEMENT STARTING RENT (NNN) ESCALATION

Adidas 1349-1357 Abbot Kinney Blvd Retail 6,000 60 12/01/17 $15.00 3.0%Ahlem Eyewear 1121 Abbot Kinney Blvd Retail 1,900 120 08/01/16 $12.50 3.0%The Cords & Company 1410 Abbot Kinney Blvd Retail 550 60 05/01/17 $19.99 3.0%Undisclosed 1345 Abbot Kinney Blvd Live/Work 6,000 72 — $8.33 3.0%

ADDRESS UNIT TYPE SF MONTHLY RATE

10 19th Ave 1Bed/1Bath 1,110 $2,999.00 514 Sunset Ave 1Bed/1Bath 672 $3,000.00 542 Grand Blvd 1Bed/1Bath N/A $3,150.00 35 Clubhouse #F 1Bed/1Bath N/A $3,750.00 2341 Beach Ave #1/2 1Bed/1Bath N/A $2,975.00 8 Brooks Ave 1Bed/1Bath 975 $4,500.00 8 Brooks Ave #2 1Bed/1Bath 1,000 $4,950.00

RETAIL & LIVE/WORK

RESIDENTIAL


FOR SALE RESIDENTIAL | RETAIL 511 OCEAN FRONT WALK VENICE CA 90291 SALE COMPS

511 OFW1305 Abbot Kinney Blvd



14 Ozone Ave

523 Main St

809 6th Ave

1308-1312 Abbot Kinney Blvd

1308 Pacific Ave

49 Paloma Ave


ADDRESS BUILDING TYPE SALE DATE SALE PRICE BUILDING SF PRICE / BLD SF LAND SF PRICE / LAND SF

1305 Abbot Kinney Blvd Retail 02/27/18 $5,275,000 1,248 $4,227 3,388 $1,556.52

1308-1312 Abbot Kinney Blvd Retail 02/28/18 $19,350,000 4,659 $4,153 6,137 $3,152.70



ADDRESS BUILDING TYPE UNIT TYPE SALE PRICE BUILDING SF PRICE / BLD SF SALE DATE

523 Main St. Residential 5 Units 1bed 1 bath $1,575,000 1,536 $1,025 09/26/17

809 6th Ave. Residential 2 Units 1b1b & 1b2b $2,150,000 1,400 $1,536 05/22/17

1641 Abbot Kinney Residential 5 Units 1bed 1 bath $4,500,000 3,618 $1,244 12/17/17

14 Ozone Residential 6 Units Mix $4,250,000 4,693 $906 06/01/17

1308 Pacific Residential 2 Units 1b 1b $3,550,000 3,300 $1,076 06/15/17

49 Paloma Residential 6 Units Mix $3,096,000 3,540 $875 05/09/18

RESIDENTIAL

RETAIL


FOR SALE RESIDENTIAL | RETAIL 511 OCEAN FRONT WALK VENICE CA 90291 PROPERTY OVERVIEW



ZONING

LAC1

(Commercial)

LAND AREA

±5,612

(0.12 Acres)

BUILDING AREA

± 9,456 SF

(Assesor)

APN

4286-029-012

PROPERTY OVERVIEW


FOR SALE RESIDENTIAL | RETAIL 511 OCEAN FRONT WALK VENICE CA 90291 PROPERTY PHOTOS



Notes:*California Love lease renewed at $15/SF Jan 1, 2019 1 month free rent. 3.5% annual increases—Egyptian Museum does not have extension options or termination rights. 4% annual increases—Current Building Occupancy Rate: 50% Occupancy

—Suite 3,4,5, and 6 are Ocean Front yielding higher rents—Property tax assumption is based on a 1.2% tax rate applied to the assumed $11.45mm purchase price. Annual property tax post acqusition is $137,400—Management Fee is 5% of total NOI and is $21,294 and is included in Professional Fees

FINANCIALS

RENT ROLL

OPERATING STATEMENT

CAP RATE

UNIT TENANT SF LEASE START LEASE END CURRENT RENT / MO MONTHLY RENT / SF PRO FORMA RENT MARKET RENT / SF AS OF 1/1/19

01 Retail A - California Love Holdings* 740 12/10/13 12/31/2018 $9,116.00 $12.32 $11,100.00 $15.00

02 Retail B - Egyptian Museum 740 1/1/17 4/30/20 $10,101.00 $13.65 $10,508.00 $14.20

RETAIL TOTAL: 1,480 $19,217.00 $21,201.00 $259,296.00

03 1BD/1BA - Vacant (Ocean Front) 700 N/A N/A $0.00 $0.00 $3,600.00 $5.14

04 1BD/1BA - Vacant (Ocean Front) 700 N/A N/A $0.00 $0.00 $3,600.00 $5.14

05 1BD/1BA 700 7/10/15 MTM $3,528.00 $5.04 $3,528.00 $5.04

06 1BD/1BA 700 MTM $3,282.00 $4.69 $3,446.00 $4.92

07 1BD/1BA 700 MTM $2,040.00 $2.91 $2,040.00 $2.91

08 1BD/1BA 700 9/01/18 8/31/19 $2,650.00 $3.79 $2,650.00 $3.79

09 1BD/1BA - Vacant 700 N/A N/A $0.00 $0.00 $3,100.00 $4.43

10 1BD/1BA - Vacant 700 N/A N/A $0.00 $0.00 $3,100.00 $4.43

11 1BD/1BA 700 3/13/17 MTM $2,895.00 $3.93 $2,895.00 $4.14

12 1BD / 1BA - Vacant 700 N/A N/A $0.00 $0.00 $3,250.00 $4.64

Apartments Total: 7000 $14,395.00 $31,209.00 $374,508.00

Total Monthly Revenue: $33,612.00 $52,817.00

Total Annual Revenue: $403,344.00 $633,804.00

INCOME CURRENT PRO FORMA

Apts Gross Potential Rent $172,740.00 $374,508.00

Retail Gross Potential Rent $230,604.00 $259,296.00

Total Gross Potential Income $403,344.00 $633,804.00

CAP RATE VALUATION BASED ON PRO-FORMA NOI

3.74% $11,450,000

EXPENSES 2017 ACTUALS 2018 PRO-FORMA EXPENSES 2018 - 1/1 - 5/31 ACTUALS

Utilities $20,178 $20,783 $7,855

Taxes and Insurance $20,884 $143,400 $9,323

Professional Fees $20,680 $21,250 $4,217

Maintenance $5,172 $5,327 $1,526

Property Repairs $8,250 $10,000 $4,015

General and Administration $902 $929 $678

Non-Cam OPEX $3,519 $3,625 $2,694

Total Expense $79,585 $205,314 $30,308

NOI $323,759 $428,490



WALKSCORE

90/100 ‘WALKER’S PARADISE’

AMENITY MAP

Gold’s Gym

Wallflow

erW

hole Foods

Enterpris

e Fish Co.

220 Fitness

31Ten Lounge

Chaya Venice

Wur

stku

che

Ralp

h’s

The Firehouse

Venice Alehouse

Groundwork Coffe

e

Eat Vinnys

The Sidewalk Cafe

Barrique

Prim

itivo

The

Roo

ster

fish

Tow

nhou

se V

enic

eSh

ima

Cafe Zinque

Erewhon M

arket

Gjusta

Blu

e B

ottle

Cof

fee

The

But

cher

’s D

augh

ter

YAS

Fitn

ess

Inte

llige

ntsi

a

The

Dai

ley

Met

hod

FEED

Bod

y &

Sou

lG

jelin

aTh

e B

ring

The

Tast

ing

Kitc

hen

Lem

onad

e

Moon Juice

CervetecaCafe Gratitude

Chinois on Main

La Veccia Cucina

Basement Tavern

Sunny Blue

Library Alehouse

O’ Brie

ns

Via Veneto

Bulletproof C

offee

The Poke Shack

Hotel Erw

in

Buzzfeed

The Branding Farm

Google

Snap(HQ)

Vice Media

HumunculusPSYOP

Knock Knock

511 Ocean Front Walk

About the neighborhood

Walkable neighborhood close to abundant amenities.

Located in one of L.A.’s pioneering creative office neighborhoods

Neighbors include Google, Buzzfeed, Vice Media, System1, and Parachute.

10-MIN DRIVE TO 405 FWY6-MIN DRIVE TO 10 FWY20-MIN DRIVE TO LAX

511 ocean front walk venice · gem markett ghery partners youtube 72andsunny naritiv within signal...

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