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.
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1530 N COAST HWY
1530 N COAST HWY
7NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
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
9NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
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.
11NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
NOTES*One unit is split into two units.
12 NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
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
13NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
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
17NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
Market Comparables
Rent Comparables Map1530 NORTH COAST HIGHWAY
1 1290 North Coast Highway
2 453 Cypress Drive
3 1570 North Coast Highway
2
3
1
4
5
6
4 240 Cajon Street
5 1208 North Coast Highway
6 649 North Coast Highway
19NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
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
20 NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
NOTES*One unit is split into two units.
453 CYPRESS DRIVELaguna Beach, CA 92651 2
UNIT TYPE SQUARE FEET MARKET RENT RENT PSF1 Bed/1 Bath 600 $2,150 $3.58
Units: 4 Year Built: 1946
1570 NORTH COAST HIGHWAYLaguna Beach, CA 92651 3
UNIT TYPE SQUARE FEET MARKET RENT RENT PSF1 Bed/1 Bath 560 $2,025 $3.62
Units: 8 Year Built: 1963
21NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
Rent Comparables1208 NORTH COAST HIGHWAYLaguna Beach, CA 92651 5
UNIT TYPE SQUARE FEET MARKET RENT RENT PSF1 Bed/1 Bath 800 $2,750 $3.44
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
Units: 4 Year Built: 1944
22 NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
649 NORTH COAST HIGHWAYLaguna Beach, CA 92651 6
UNIT TYPE SQUARE FEET MARKET RENT RENT PSF2 Bed/2 Bath 800 $3,100 $3.88
Units: 4 Year Built: 1972
23NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
2
1
3
24 NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
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
NOTES*One unit is split into two units.
Market Comparables
25NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
Status: Under Contract
List Price: $2,695,000
Year Built: 1974
Units: 6
Price/Unit: $449,167
Approx. Net Rentable SF: 3,266
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
Status: Under Contract
List Price: $11,995,000
Year Built: 1969
Units: 14 + 2 Retail Suites
Price/Unit: $749,688
Approx. Net Rentable SF: 10,233
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
Status: Under Contract
List Price: $3,499,000
Year Built: 1939
Units: 5
Price/Unit: $699,800
Approx. Net Rentable SF: 3,241
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
28 NORTH COAST APARTMENTS | OFFERING MEMORANDUMACTIVITY ID Y0100353
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]