2663-2671 Main St & 2668 2nd St

2663-2671 Main St &2668 2nd StSanta Monica, CA 90405

SCOTT [email protected] BRE No. 01252835

JIM [email protected] BRE No. 01146229

RICH [email protected] BRE No. 02009527

INDUSTRY PARTNERST 310 395 [email protected] CA BRE NO. 01900833

RARE INVESTMENT OPPORTUNITY IN SANTA MONICA’S OCEAN PARK NEIGHBORHOOD

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+ Executive Summary

+ About the Property

+ Property Highlights

+ About the Neighborhood

+ Market Overview

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The information contained herein has been obtained through sources deemed reliable but cannot be guaranteed as to its accuracy. Any information of special interest should be obtained through independent verification.

Table of Contents

INDUSTRY PARTNERS | T 310 395 5151 | INDUSTRYPARTNERS.COM | CA BRE LIC NO. 01900833

Executive Summary

Rare opportunity to acquire a one-of-kind asset

FOR SALE $20,000,000

ABOUT THE BUILDING

This investment opportunity consists of two properties located on Main Street at the southern end of Santa Monica on the border of neighboring Venice. 2663-2671 Main Street is a ±9,500 RSF two-story all-brick retail/office building with ground floor retail and 2nd-floor office space, built in 1913. The building has remarkable architectural character through its brick construction, design details, and outdoor patio space.

Starbucks Coffee anchors the ground floor located in a ±1,960 SF space on the corner of Main & Hill —Starbucks provides a $125,597 annual revenue. Next to Starbucks on Main St, is a ±1,000 SF Seamstress shop, and the rest of the

ground floor and basement are currently used as storage. The second floor is occupied by the owner and will also be delivered vacant, so will the seamstress shop and storage space.

Per the Assessor’s map below, 2668 2nd St Street is a ±4,990 SF parcel of land on the northwest corner of Hill and 2nd Street, presenting the buyer with an excellent ground up development opportunity .

(*buyer to verify development requirements with the City*).

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2663-2671 MAIN ST - 2668 2ND ST, SANTA MONICA, CA 90405

APN 4288-002-035 4288-002-019

LOT AREA ±4,997 SF ±4,990 SF

BUILDING SF ±9,500 RSF - PARKING LOT -

STORIES 2 N/A

BUILT 1913 N/A

ZONING NC Neighborhood Commercial

OP2Ocean Park 2

TENANTS Starbucks N/A

4288-002-035

4288-002-019

4288-002-019

Main St Hill

St

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease are subject to change or withdrawal without notice. ©2017 INDUSTRY PARTNERS, INC.

SANTAMONICA

VENICE

CULVERCITY

PLAYAVISTA

MARINADEL REY

WEST LA

Subject Property

The Property in Context


About the Property

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Ground Floor Retail and PatioA B

C D

E


UP DNTO BASEMENT

STARBUCKS

OWNER OCCUPIEDSTORAGE

BASEMENT BELOW ±1,000 SF

PATIO

WOMEN’SDRESS SHOP

MAIN ST

HILL ST

Not to scaleFor informationalpurposes only.

Ground Floor | Floor PlanA

B

C

E

D

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Second Floor A

B

D

C


MAIN ST

HILL ST

Not to scaleFor informationalpurposes only.

Second Floor | Floor Plan

CONFERENCEROOM

RECEPTION

KITCHEN

MRR

WRR

UP

DN

PATIO

B

F

D

E

G

C

A

H

9

Second Floor E

G

H

F


Property Summary

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2663-2671 MAIN ST 2668 2ND ST SUMMARY MAP

APN 4288-002-035 4288-002-019

LOT AREA ±4,997 SF ±4,990 SF

BUILDING SF ±9,500 RSF - PARKING LOT -

STORIES 2 N/A

BUILT 1913 N/A

ZONING NC Neighborhood Commercial

OP2Ocean Park 2

TENANTS Starbucks. Women’s Apparel Shop

N/A

IN-PLACE LEASE

Annual Cash flow from Starbucks $125,597Commencement Date: 06/01/16 Expiration Date: 5/31/226% Rent Bumps Every 2 Years1 Option to extend the term for 5 years commencing on June 1, 2022 and expiring May 31, 2027

2663-2671 Main St:

NC: Neighborhood Commercial Zone

Permitted uses: Residential, Restaurants (with some restrictions), Business services, General market, Offices (professional, creative, or medical with limitations), Small scale retail (up to 7,500 sf, 40 liner ft street frontage), artist studio, media production support facility (with limitations) FAR:0.75 base (2/27’ height limit) 1.00 with affordable housing (2/27’ height limit) 1.25 100% affordable housing (no story limit/32’ height limit)

2668 2nd St:

OP-2: Ocean Park Medium Density Zone (low density residential): This Zoning District is intended to provide a variety of low density housing types that reflects the distinct identity of the Ocean Park neighborhood. These types include single unit housing, duplexes and triplexes, townhouses, and courtyard housing with at least 2,000 square feet of parcel area per unit exclusive of City and State density bonuses. In addition to low density residential development, this District provides for uses such as transitional housing or hospice facilities, family day care, and neighborhood serving uses such as childcare, neighborhood grocery stores, and community facilities that may be appropriate in a residential environment.

Permitted uses: Single and multi-family, single room occupancy, family day care, supportive/transitional housing, General Market (CUP)

Development standards: + One story and 14 feet in height for the first 15 feet of horizontal distance on the parcel measured from the front parcel line.

+ 2 stories and 18 feet for a flat roof or 23 feet for a pitched roof for that portion of the structure located between 15.1 feet and 30 feet from the front parcel line.

+ The maximum permitted height for structures beyond 30 feet from the front parcel line shall be 2 stories and 23 feet for a flat roof or 30 feet for structures with a pitched roof.

+ The finished grade shall be no more than three feet below or above the theoretical grade line at any point adjacent to a building if excavation occurs. An opening to a garage may remain unexcavated.

+ Maximum Parcel Coverage (% of Parcel Area): 50%

N

2668 2nd StAPN: 4288-002-019OP2 ZoneLand: ±4,990 SF

2663-2671 Main StAPN: 4288-002-035 OP2 ZoneBuilding: ±9,500 SFLand: ±4,997 SF

Main StMain St

2nd St2nd St

Hill

St

Hill

St

The information contained herein has been obtained through sources deemed reliable but cannot be guaranteed as to its accuracy. Buyer to verify an information of special interest through independent verification.

Property Highlights

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Neighborhood Amenities

MAIN STREET, SANTA MONICA

2663-2671 Main St. & 2668 2nd St. location on the southern edge of Santa Monica, bordering Venice, also allows easy access to the collection of amenities along Santa Monica’s Main Street. This commercial street features shops like Japanese lifestyle brand Muji and former Abbot Kinney Blvd shops Mona Moore and Pamela Barish.

ABBOT KINNEY BLVD

Venice’s Abbot Kinney Blvd is often considered the ‘coolest’ block in Los Angeles. In 2012, GQ even proclaimed it the Coolest Block in America The street is home to one-of-a-kind shops alongside major brands. Shops include beachside boutique Aviator Nation, Australian

cosmetic brand Aesop, men’s shop Gant, American-made watch brand Shinola and colorful sock brand Happy Socks, among others. Mixed in with the retail are some of L.A.’s best eateries and cafés that include Gjelina, Tasting Table, Salt & Straw, The Butcher’s Daughter, Intelligentsia and Blue Bottle Coffee. Abbot Kinney Blvd is where locals and visitors meet to soak up Venice’s bohemian lifestyle and culture.

THE BOARDWALK

The iconic Venice Beach Boardwalk is a staple attraction in Los Angeles. Through its array of beachside shops, bars and restaurants, along with its sidewalk entertainers and artists, it continues to symbolize the eclecticism that attracted artists and creatives to Venice in the first place.


10 min walk

The Galley

Manchego

La Vecchia Cucina

Undefeated SaMo

Max Studio

Lula Cocina Mexicana

Sunny Blue

Bareburg

er

Groundwork Coffe

e

Circle Bar

MUJI

M Hanks Gallery

Bulletproof C

offee

31Ten Lounge

Chaya Venice

YAS Fitness

FlakeCerveteca

Wallflow

erGroundw

ork CoffeeW

hole Foods

Jinya Ramen

M Street K

itchen

Stella Barra

Pizzeria

Urth CafeKafe K

Dogtown Coffee

Peet’s Coffe

e

Brick + M

ortar

Buffalo Exchange

Amelia’s

Chinois on Main

Hiptique

Main Squeeze

Ashland Hill

Rick’s Tavern

Via Veneto

Espresso Cielo

Mona Moore

Barish Pamela

The Firehouse

Barrique

Cafe Gratitude

Venice Alehouse

Venice Alehouse

Rose Cafe-Restaurant

Salt

Zinque

Lemonade

Salt AirR

ag &

Bon

eAe

sop

Tort

oise

Avia

tor

Nat

ion

Luck

y B

rand

Hap

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ocks

TOM

SSh

ima

Satin

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Salt

ShinolaG

jelin

a

Juic

eBox

Abbo

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abit

Salt

& S

traw

Vinc

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Geb

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alle

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Inte

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Wyl

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ilson

Gre

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ourm

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The

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Blu

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Jam

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Erewhon M

arket

Select Local Amenities

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SANTAMONICA

VENICE

MARINADEL REY

LAX

PLAYAVISTA

2663-2671 Main St & 2668 2nd St2663-2671 Main St & 2668 2nd St 5-mile radius5-mile radius

Area Creative Tenants


Market Overview

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Rents to remain higher than average with the lack of office inventory and halt of development agreements within the City of Santa Monica

Companies will continue to seek out office space in Santa Monica as it continues to be a vital part of ‘Silicon Beach.’ Recent nearby leases include Snapchat’s expansion at 901 Abbot Kinney Blvd, and Vice Media’s expansion to 1621 Abbot Kinney —previously occupied by Zephyr.

Continued improvement of retail on Main Street, Rose Avenue and Abbot Kinney Blvd

Increased preference for walkable neighborhoods with close access to amenities (Ocean Park is an exemplary urban neighborhood in Los Angeles)

FORECAST

Silicon Beach

THE RISE OF THE CREATIVE SPACE

Silicon Beach is the general westside coastal area stretching from Santa Monica to Venice, Culver City, West LA, Marina Del Rey and Playa Vista. Over the last five to eight years, this part of Los Angeles has emerged as the leading concentration of LA’s creative economy, focused on tech, media and e-commerce. It’s home to over 500 tech firms including Google, Snapchat, TrueCar, Universal Music, Red Bull, Electronic Arts, The Honest Company, Riot Games, YouTube and Yahoo!—among others. But it is also a thriving market for startups like Ring, Parachute, Dollar Shave Club and Thrive Market.

With over $4 billion in new investment, Silicon Beach has quickly become an innovation force competing with Silicon Valley. As startups and larger established firms have come to call Silicon Beach home, a community and co-location of companies has created a vast network of ingenuity.

Starting in the mid-1990s, some Hollywood studios, producers and writers started opening offices in areas of Santa Monica’s former industrial buildings. Their high ceilings, raw aesthetic and big windows were far from the studio offices many had worked in for years. And the spaces were definitely far from any traditional Class A building and space.

Today’s creative firms are looking for space that reflects their company culture and values. Through trends in office layout and design, as well as changes in the way today’s creative worker operates, creative office space has emerged as the new ‘Class A.’ As LA’s creative economy continues to grow, creative, non-traditional office space will be


About the Neighborhood

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About Ocean Park

OCEAN PARK

Ocean Park is one of LA’s most desirable places to live and work for its access to the beach, world-class retail, unique upscale bohemian culture, restaurants, and an economy strengthened by leading innovators.

Ocean Park is a neighborhood of Santa Monica that is home to a diverse population of over 12,500 people. With a land area of 0.75 miles, Ocean Park has a remarkable concentration of standout retail and restaurants, and has gained the reputation of having a laid-back yet upscale population that take full advantage of its walkable streets and the beach.

DEMOGRAPHIC INSIGHTS

Ocean Park has a dynamic history that includes artists, working class families and today’s young professional tech workers. Venice’s 12,500 residents have higher education degrees, with 46% having a bachelors degree and 32% having a graduate degrees. This is partly due to the increasing concentration of technology firms moving to Ocean Park and Venice over the last few years. As the community has evolved, so has the housing market. Today’s average home value in the Ocean Park/Venice area is $1.5M.

Santa Monica~8.41 Square Miles

10 fwy

lincoln blvd

PACIFIC OCEAN

0.3 mi

2663-2671 Main St


POPULATION

12,529+0.62% by 2022

+16.8% by 2022

AVERAGE INCOME

$134,377

+7% by 2018

MEDIAN HOME VALUE

$1,400,000+

with college or higher degree

EDUCATIONAL ATTAINMENT

78.3%

20% occupied by owners

HOUSING UNITS

7,985

Demographics

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Living in Ocean Park

OCEAN PARK

With all the amenities that Ocean Park has to offer along with a network of creative and tech companies in the area, it is no wonder that many want to live in Venice. Firms like Snapchat are even starting to rent entire buildings in Venice for their employees to live in.

MOBILITY

Walkable and Bikeable.Ocean Park is Santa Monica’s most walkable neighborhood with a walk score of 95. It’s streets and bike lines also make it one of the most bike-friendly places with a bike score of 93. Other ways of getting to and from Ocean Park include Lincoln and Main St; the 10 and 405 freeways, as well as the 90 freeway.

Bus Lines. Ocean Park is served by major bus lines on LA Metro and the Santa Monica Big Blue Bus, connecting the neighborhood to the rest of LA.

Rail Transit. In May 2016 the second phase of the Metro Expo rail line opened with 7 new stations on the Westside. 2663-2671 Main St & 2668 2nd St are just one mile south of the Expo Line terminus at Colorado and 4th Street in Santa Monica. Increasingly, Expo Line commuters use rideshare services to connect them from their metro stop to a nearby destination.

LAX. Directly south of the Venice and The Property is Los Angeles International Airport (LAX). Just 4.5 miles away, the airport is an easy and direct ride.

Sources: Trulia.com, ESRI 2017

$2,900.00MEDIAN RENT PER ROOM

(July 2017, Trulia.com)

24,41419.9%

TOTAL HOUSING UNITS

Owner Occupied

Renter Occupied73.6%

6.5%RENTAL VACANCY RATE

Occupied

Vacant


Prime Location

TWO BLOCKS AWAY FROM THE BEACH

The Property is situated in Ocean Park, a place that has it all. The beach is steps away, and countless eateries and retail options are literally around the corner. But what makes the neighborhood so special is the artsy and beachy atmosphere that is shared with Venice Beach although cleaner, safer and upscale.

Not surprisingly Street Advisor ranked Ocean Park the second best place to live in Santa Monica.

In addition, 2663-2671 Main St & 2668 2nd St are very well connected to the region. The closest freeway access ramp is less than a mile away, and LAX is just within a 20-minute drive.

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Walkscore: 95/100

0%

50%

100%

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Source: Walkscore.com

5 min walk 10 min 15 min

Ocean Park Walkability


Superior Market Fundamentals

THE SILICON BEACH DIFFERENCE

Silicon Beach is a coveted location for both established and startup technology, media and advertising tenants, with some of the highest rents and occupancy rates in all of Southern California. At the second quarter of 2017, creative office occupancy in the area was above 93%, while achieving double-digit rental growth over the last two years.

Some notable tenants in the area include Google, Snapchat, Buzzfeed, Muckerlab, Vice Media, Enervee, and PSYOP. The area has continuously drawn tech and creative companies because of a rare combination of exceptional walkability, access to high-quality amenities, close proximity to the beach, and easy access to freeways and the Los Angeles International Airport, and most importantly, a strong demographic base of well-educated, young professionals.

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Surrounded by Amenities

MAIN ST + OCEAN PARK BLVD +VENICE ADJACENT

A walk along Main Street or Ocean Park Boulevard offers endless options for a meal, a cocktail, or a sip of organic juice. The possibilities are so diverse and close to 2663-2671 Main St & 2668 2nd St that everything can be done without a car. In addition to the abundant restaurants, bars, and shopping places, The Property is located just a third of a mile from the edge of the ocean.

Only a handful of neighborhoods in the city have the beach as its own backyard. Because Ocean Park has an even access to the beach —in contrast

to the cliffs in the rest of Santa Monica, a short walk or bike ride, will take you to the sand within minutes.

Some of Main Street’s high-quality retailers include fashion-forward brands such as Muji, Pamela Marish, and Mona Moore. On the restaurant side, Via Veneto offers classic italian dishes, and Joe Jonas’ Hinterland is the place to go for people watching and a selection of new american seasonal coastal cuisine. Main Street is an ever-evolving commercial strip that has a lot to offer for anyone who favors walking to expore new restaurants and shops.


Walking and Biking

PEDESTRIAN/BIKER’S PARADISE

2663-2671 Main St & 2668 2nd St are located in the most walkable neighborhood in Santa Monica according to a study by Walk Score™. The Property is at the top of the list (with a score of 96/100), thanks to its proximity to restaurants, grocery markets, shopping, open space, schools and cultural centers. Additionally, the study shows that the block length and street intersections in the area are optimal for pedestrians.

The Property sits in one of the most bike-friendly areas in the region as well. With an exceptional

91/100 score, Ocean Park features an extraordinary number of dedicated bike lanes, a flat topography, road connectivity and presence of bike share programs. Moreover, 2663-2671 Main St & 2668 2nd St is located within an extraordinary biking community that benefits from the “safety in numbers”. Thanks to the high bike traffic in the area commuters feel safe biking on the streets of Ocean Park, where everyday errands can be accomplished by pedaling a few blocks.

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INDUSTRY PARTNERST 310 395 [email protected] CA BRE NO. 01900833

2663-2671 Main St & 2668 2nd St

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