los angeles, ca · 2020. 11. 9. · property overview. marcus & millichap is pleased to present...

OverlandAvenue

OverlandAvenue

L O S A N G E L E S , C A

OFF

ERIN

G M

EMO

RA

ND

UM

3532

P L A Y V I D E O

https://mmreis-my.sharepoint.com/:v:/g/personal/joseph_bonilla_marcusmillichap_com/EdufteCWTeRIvmaYJU8Eym0B5alVoTcL5lQXEtIMizvKcQ?e=ucp2KS

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the infor-mation contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the Offering Memo-randum. If you have no interest in the subject property at this time, please return this Offering Memorandum to Marcus & Millichap.

This Offering Memorandum has been prepared to provide summary, unverified financial and physical 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 contaminat-ing substances, PCBs or asbestos, the compliance with local, 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 Offering Memorandum 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 ap-propriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

Confidentiality and Disclaimer

Special COVID-19 Notice

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek ex-pert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Milli-chap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buy-ers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)

Property Overview

Marcus & Millichap is pleased to present 3532 Overland Avenue, in Los Angeles CA. This is a 7,500 square foot building with ground floor currently utilized as retail and second story office. It sites on a 5,858 square foot lot. Currently there are four tenants occupying the property. The ground floor is an Orchid Retailer and the second floor is occupied by three office tenants. This is a high visibility location with approximately 24,000 cars passing by each day. The upstairs units are well improved. This is a must see for a user looking for a new home.

3532 Overland Avenue is in the path of new development happening on every side. From residential development to an influx of high tech. By 2022, four of the largest and most innovative companies in the world could be over one million square feet of LA-based, mixed-use office space.

Key marketexpansionsWith a number of Fortune 500 companies and a slew of startups now fighting to get into this LA neighborhood, it is no wonder this area is slowly becoming the new tech market. Home to social media juggernaut company TikTok and publicly traded cannabis company, MedMen, this neighborhood will likely accelerate growth and market expansion for years to come. Apple, Amazon, and HBO have all announced plans to make Culver City their new Los Angeles headquarters — making Culver City ground zero for the streaming wars.

With Apple’s 125,000 square foot project — largely consisting of the new content division established to create films and television shows for the Apple TV Plus streaming service — combined with Google’s 14-year lease of the $475-million Westside Pavilion recon-struction and the migration of tech giants, the cost of commercial real estate in the area is swiftly taking a massive rise.

Amazon has revealed more details of its new $620-million expansion in Culver City, California. The new Amazon expansion will add 413,000 square feet of rent-able space to the 14-acre campus, increasing its total footprint to more than 720,000 square feet. This massive project is slated for finalization in Spring of 2021. The property shares a courtyard with the historic Culver Hotel, defined by its art deco architecture and 1920s glamour.

As Urbanize LA reports, plans also call for the construction of two parking structures, with total accommodations for 1,930 vehicles. The design includes contemporary mid-rise structures to be made with metal exteriors and gabled roofs. The campus will also include several terrace decks and landscaped interior pathways that create connections between the various structures on site.

Culver Studios:Innovation planLocated in Culver City, California, The Culver Studios is one of the entertainment industry’s most treasured independent film and television studios. Hackman Capital Partners is embracing the studio’s star-studded legacy with an Innovation Plan to completely modernize the lot—more than doubling its size—for next-generation entertainment. All while preserving the site’s historic structures. Construction on the site is currently underway and is slated for final completion in Spring 2021.

When the Innovation Plan is completed, The Culver Studios campus will total 720,850 square feet—including the Mansion and adjacent bungalows, five new buildings, totaling 575,000 square feet, and two parking structures with 1930 spaces. All in all, the campus will offer 619,850 square feet of creative office and state-of-the-art production support space, 96,263 square feet of stages, and 4,736 square feet of stage support space.

The Innovation Plan is intended to technologically update and expand the facilities within the existing 14.3-acre Studio Campus, while retaining the Studio’s unique ambiance and prominent place in the community, to allow the Studio Campus to efficiently, effectively, and sustainably adapt to the current and future needs of the entertainment industry and digital media.

New additions to the studio site will include five new office buildings totaling 500,000 square feet, more than doubling its size, and two new parking structures with over 1,900 parking spaces for studio workers. Amazon will lease four of the five new office buildings.

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Demand drivers

Developm

ents

9

Financial analysis

SUMMARY

Price $5,953,800

Down Payment $893,070

Down Payment % 15%

Number of Suites 2

Price Per SF $793.84

Rentable Built Area (RBA) 7,500 SF

Lot Size 0.13 Acres

Year Built 1982

Occupancy 100%

RETURNS CURRENT PRO FORMA

CAP Rate 0.91% 5.00%

Cash-on-Cash 0.91% 0.91%

Debt Coverage Ratio 0.00 0.00

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Tenant summary

ANNUALIZED

Level Square Feet Building Share Lease Comm. Pro Forma Rent Changes On Rent Increases Lease Type

Ground Floor 3,750 50% 12/31/99 $140,000 Aug-2021 $11,667 NNN

2nd Floor 3,750 50% 12/31/99 $157,500 Aug-2021 $8,750 NNN

Total 7,500 $297,500

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Operating statementINCOME CURRENT PRO FORMA

Scheduled Base Rental Income $54,000 $297,500

Potential Gross Revenue $54,000 $297,500

Effective Gross Revenue $54,000 $297,500

Net Operating Income $54,000 $297,500

Cash Flow $54,000 $297,500

Net Cash Flow After Debt Service 0.91% $54,000 5.00% $297,500

Total Return 0.91% $54,000 5.00% $297,500

Cost to ownanalysisPrice $5,953,800

Down Payment $893,070 15%

$5,060,730

SF $4,400

Debt Service ($341,467)

Expenses (Estimated) ($96,800) $22.00 PF

Cost to Own ($438,267)

Effective Rent PSF ($4.87) PF

Total Square Feet 7,500

SBA LOAN

Ammortization 22.5 Years

Interest Rate 4%

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Phot

os

Market comparables

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2

3

1

5

6

7

16

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4

1

5

2

6

3

7

PROPERTY COE YEAR BUILT PRICE RENTABLE SF PRICE/SF

3532 Overland Ave, Los Angeles, CA, 90034 - 1982 $5,953,800 4,400 $793.84

1310 Westwood Blvd, Los Angeles, CA, 90024 8/24/2020 1955 $4,650,000 6,681 $696.00

320 N Larchmont Blvd, Los Angeles, CA, 90004 7/9/2019 1989 $10,050,000 12,400 $810.48

2476 S Overland Ave, Los Angeles, CA, 90064 7/2/2019 1974 $6,200,000 7,598 $816.00

1650 Westwood Blvd, Los Angeles, CA, 90024 9/16/2019 1978 $7,450,000 10,424 $714.70

8931 Ellis Ave, Los Angeles, CA, 90034 12/9/2019 2011 $14,000,000 18,232 $767.88

864 S Robertson Blvd, Los Angeles, CA, 90035 3/29/2019 1956 $11,900,000 15,122 $786.93

8417 Beverly Blvd, Los Angeles, CA, 90048 6/12/2019 1954 $4,500,000 5,860 $767.92

AVERAGE 1975 $8,087,975 10,070 $769.22

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1

3

4

5

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$900.00

$810.00

$720.00

$630.00

$540.00

$450.00

$360.00

$270.00

$180.00

$90.00

$0.00

Subject Property

1310 Westwood

Blvd

1650Westwood

Blvd

8417Beverly

Blvd

8931 Ellis

Avenue

320 N. Larchmont

Blvd

2476 S. Overland Avenue

864 S. Robertson

Blvd

Average price per gross square foot

18

3532 OVERLAND AVE

Asking Price $5,953,800

Price/SF $793.84

CAP Rate 0.91%

Year Built 1982

Occupancy 0%

Parking Ratio 4 Spaces

1310 WESTWOOD BLVD

Close of Escrow 8/24/2020

Days On Market 160

Sales Price $4,650,000

Rentable SF 6,681

Price/SF $696.00

Year Built 1955

320 N LARCHMONT BLVD


Days On Market 56


Rentable SF 12,400

Price/SF $810.48

Year Built 1989

19

1650 WESTWOOD BLVD


Days On Market 47


Rentable SF 10,424

Price/SF $714.70

Year Built 1978

2476 S OVERLAND AVE


Days On Market 140


Rentable SF 7,598

Price/SF $816.00

Year Built 1974

8931 ELLIS AVE



Rentable SF 18,232

Price/SF $767.88

Year Built 2011

20

8417 BEVERLY BLVD



Rentable SF 5,860

Price/SF $767.92

Year Built 1954

864 S ROBERTSON BLVD


Days On Market 186


Rentable SF 15,122

Price/SF $786.93

CAP Rate 4.44%

Year Built 1956

21

Lease comparables

4

3

1

5

6 7

2

$75

$68

$60

$53

$45

$38

$30

$23

$15

$8

$0

Subject Property

10216-10220 Culver Blvd

3637 Motor

Avenue

10606 Venice Blvd

3679 Motor

Avenue

10310Culver Blvd

3272 Motor

Avenue

3767 Overland Avenue

Average rent per square foot

23

3532 Overland Avenue

ADDRESS YEAR BUILT RENTABLE SF AVAILABLE SF RENT/SF OCCUPANCY

3532 Overland Avenue, Los Angeles, CA, 90034 2014 7,500 7,500 -- 0%

10216-10220 Culver Boulevard


10216-10220 Culver Blvd, Culver City, CA, 90232 1955 7,917 620 $36.00 85%

10310 Culver Boulevard


10310 Culver Blvd, Culver City, CA, 90232 1975 5,945 5,200 $47.40 -

3272 Motor Avenue


3272 Motor Avenue, Los Angeles, CA, 90034 1982 10,322 2,500 $42.00 75%

1

2

3

24

3637 Motor Avenue


3637 Motor Avenue, Los Angeles, CA, 90034 1984 11,406 3,500 $39.00 65%

3679 Motor Avenue


3679 Motor Avenue, Los Angeles, CA, 90034 1991 12,093 161 $74.00 98%

Overland Business Center


3767 Overland, Los Angeles, CA, 90034 1983 20,215 2,800 $43.80 85%

10606 Venice Boulevard


10606 Venice Blvd, Los Angeles, CA, 90034 1961 2,665 2,665 $60.00 -

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los angeles, ca · 2020. 11. 9. · property overview. marcus & millichap is pleased to present...

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