BRANDON MICHAELS GROUP HILLHURST AVENUE LOS ANGELES, CA OFFERING MEMORANDUM

Transcription

1 BRANDON MICHAELS GROUP 1936 HILLHURST AVENUE LOS ANGELES, CA OFFERING MEMORANDUM

2 La La Casting Investment Advisors BRANDON MICHAELS Sr. Managing Director Investments Director, National Retail Group Tel: (818) Fax: (818) License: CA # ANDREW LEFF Senior Associate Director, National Retail Group Tel: (818) Fax: (818) License: CA: BRANDON MICHAELS GROUP 2 3

3 Contents I. EXECUTIVE SUMMARY II. PROPERTY OVERVIEW Maru Coffee III. INVESTMENT HIGHLIGHTS IV. FINANCIALS (AVAILABLE UPON REQUEST) V. SALES COMPARABLES 4 5

4 Executive Summary Marcus & Millichap is pleased to present the opportunity to purchase 1936 Hillhurst Avenue, a 2,765 square-foot multi-tenant mixed use retail & office building located in the heart of Los Feliz Village, one of L.A. s most trendy and walkable commercial districts Hillhurst Avenue is currently 100% occupied. Maru Coffee, the solitary retail tenant, began its occupancy in 2016 and has quickly become the go-to coffee spot on Hillhurst Avenue, and is regarded by many as the best coffee in Los Feliz. The remainder of the property consists of office space tucked behind the coffee shop, with individual access to each unit and private, gated parking in the rear of the property. The property has been meticulously maintained and improved over time and the attention to detail along with the small unit sizes makes the property extremely attractive to a wide variety of potential tenants. The property is ideally positioned along Hillhurst Avenue, north of Franklin Avenue and south of Clarissa Avenue, directly next door to the popular Mustard Seed Café. The property is surrounded by a variety of unique shopping and dining destinations, bars, a neighborhood movie house, an independent bookstore, under-the-radar boutiques, and a number of longstanding local businesses, which give Los Feliz its distinctive small town vibe. Maru Coffee 1936 Hillhurst Avenue offers an investor the unique opportunity to purchase a prime asset along a coveted street where properties rarely change hands. Los Feliz is well-located in Los Angeles, just minutes away from Downtown Los Angeles, Hollywood, and Silver Lake. Rapid development in these bordering neighborhoods will further add value to the immediate area over time. 7

5 Property Overview hillhurst avenue 1936 HILLHURST AVENUE LOS ANGELES, CA ADDRESS 1936 Hillhurst Avenue, Los Angeles, CA franklin avenue ASKING PRICE $2,400,000 CURRENT CAP RATE 2.40% PROFORMA CAP RATE 5.14% PRICE/SF (BLDG) $ BLDG SF LOT SIZE 2,765 SF 6,752 SF APN YEAR BUILT 1925 ZONING TYPE OF OWNERSHIP LAC4 Fee Simple 1936 Hillhurst Avenue is surrounded by a variety of unique shopping and dining destinations, and a number of longstanding local businesses, which give Los Feliz its distinctive small town vibe Hillhurst Avenue 8 9

6 Los Feliz 10 11

7 Investment Highlights IRREPLACEABLE LOS FELIZ LOCATION Located at the heart of Los Feliz on Hillhurst Avenue. Hillhurst Avenue is the main retail corridor in Los Feliz. The walkable district includes trendy and hip restaurants and eateries like Alcove, Mustard Seed Cafe, Jeni s Splendid Ice Creams, Blue Bottle Coffee, and more. Healthworks UNIQUE AND WALKABLE NEIGHBORHOOD Hillhurst Avenue and Vermont Avenue are home to a variety of unique retailers including independent bookstores, local businesses, upscale shopping, dining, and nightlife. STABLE AND SECURE INCOME 1936 Hillhurst Avenue is 100% occupied. Each tenant has 3% annual rental increases. POPULAR RETAIL TENANT The retail tenant, Maru Coffee, is regarded as one of the best coffee shops in Los Feliz by coffee aficionados. Maru Coffee is currently expanding and opening a second location in the Arts District of Downtown Los Angeles due to its success in Los Feliz. FUTURE POTENTIAL All tenants have 3 years or less remaining plus options, however leases can be restructured at landlords discretion at option period. RARE ASSET ON THE MARKET Few assets exchange in the immediate submarket, especially store-front retail. DENSE AND AFFLUENT DEMOGRAPHICS The population within a 5-mile radius is 1,038,340 and average household income within a one-mile radius is $82,

8 Property Information Location 1936 Hillhurst Avenue, Los Angeles, CA Site The subject property is just south of the southest corner of Clarissa Avenue and Hillhurst Avenue. Square Footages The building square footage is 2,765 SF on a 6,752 SF lot. Frontage and Access Approximately 51 feet of frontage on Hillhurst Avenue. Year Built The property was built in Zoning The zoning is LAC4. APN s The APN is Traffic Counts Hillhurst Avenue: 27,080 vehicles per day Franklin Avenue: 18,214 vehicles per day Parking Six spots in the rear. Occupied Property Type 100% Retail Office Year Built Location Bldg SF 1925 Los Feliz 2,765 SF 14 15

9 MARU COFFEE 16 HOLISTIC HEALING THERAPY 17

10 HEALTHWORKS LA LA CASTING 18 19

11 Sales Comparables SALES COMPARABLES PRICE/SF # ADDRESS SALE PRICE PRICE/SF BLDG SF LOT SF CLOSE OF ESCROW YEAR BUILT CAP RATE Hillhurst Avenue, Los Angeles $2,500,000 $1, ,480 6,752 3/3/ Hillhurst Avenue, Los Angeles $5,000,000 $1, ,750 6,752 3/3/ Hillhurst Avenue, Los Angeles 1930 Hillhurst Avenue, Los Angeles 3128 W. Sunset Boulevard, Los Angeles 3709 W. Sunset Boulevard, Los Angeles 1410 N. Virgil Street, Los Angeles 4889 Melrose Avenue, Los Angeles Average W. Sunset Boulevard, Los Angeles $2,500,000 $1, ,404 11,962 12/14/ W. Sunset Boulevard, Los Angeles $13,300,000 $1, ,497 15,717 1/12/ / % N. Virgil Street, Los Angeles $700,000 $1, ,084 11/15/ Melrose Avenue, Los Angeles $1,700,000 $ ,100 6,490 3/14/ Average $4,283,333 $1, ,476 8,

12 Area Overview The neighborhood of Los Feliz is a rare spot in Los Angeles that fosters a diverse, yet cohesive, creative community. Los Feliz is a hillside neighborhood in the central region of Los Angeles, California, abutting Hollywood and encompassing part of the Santa Monica Mountains. The neighborhood is named after its colonial Spanish- Mexican land grantee, José Vicente Feliz, and, along with present-day Griffith Park, makes up the original Rancho Los Feliz land concession. According to the Mapping L.A. project of the Los Angeles Times, Los Feliz is part of Central Los Angeles. It is flanked on the north by Griffith Park, on the northeast by Atwater Village, on the southeast by Silver Lake, on the south by East Hollywood, and on the northwest by Hollywood and Hollywood Hills. With over 4,210 acres of both natural chapparal-covered terrain and landscaped parkland and picnic areas, Griffith Park is one of the largest municipal parks with urban wilderness areas in the United States and home to the famed Griffith Observatory. Los Feliz Village is the southern section of Los Feliz, home to most of the commercial storefronts in the district. It is centered on the thoroughfares of Vermont and Hillhurst Avenues and spans from about Prospect Avenue to Los Feliz Boulevard. There are several coffee shops, restaurants, and small clothing and vintage stores. Los Feliz Village is home to numerous bars and restaurants catering to nightlife. They are mostly on Hillhurst Avenue between Los Feliz Boulevard and Prospect Avenue, and on Vermont Avenue between Franklin Avenue and Hollywood Boulevard. Some were classic dive bars in their heyday, frequented by the likes of Charles Bukowski, Lawrence Tierney, sundry working-class drunks, poets, artists, writers, and other creative types. Los Feliz Village: One of LA s most walkable commercial districts, this collection of historic storefronts along Vermont and Hillhurst Avenues has it all, including restaurants, a neighborhood movie house, an independent bookstore, and hip clothing boutiques

13 UNIQUE RETAILERS Area Overview Glaze Fire Jeni s Splendid Ice Cream Vista Theatre LOS FELIZ S RETAIL AND DINING RESTAURANTS Messhall Kitchen Stamp Proper Foods Little Dom s Mexico City Cafe Los Feliz Yuca s Farfalla Alcove Qwench Juice Bar Daily Donuts Mustard Seed Cafe Simply Thai Ye Rustin Inn TUb Tim Siam Green Leaves Vegan Home Restaurant Desert Rose Spitz Butter Cake Shoppe Tacos Tu Madre Palermo Italian Figaro Bistrot The Dresden 1739 Public House Casual Public Starfish Sushi Sidewalk Grill Rockwell Table & Stage Juan the Nice Bartenders Place COFFEE SHOPS House of Pies Bru Coffeebar Starbucks Qwench Juice Bar Blue Bottle Coffee The Coffee Bean and Tea leaf H Coffee House Earth Organic Juice Bar Maru Coffee House of Pies POINTS OF INTEREST Barnsdall Art Park Improv Studio Los Feliz Theatre Skylight Theatre Company Skylight Books Griffith Observatory The Greek Theatre SHOPPING Lou Wine Shop Box Brothers Los Feliz Spitfire Girl Glaze Fire Vamp Shoes Jasmine Garden Half Off Clothing Store Leap J H Collection Kingswell The hanging Company Co-op 28 Los Feliz s scenic hillsides give way to a hip and colorful commercial district below with one-of-a-kind shops and dining. Alcove Home Mustard Seed Diner Kismet Cafe Los Feliz Skylight Books Dresden Go Get Em Tiger Los Feliz Theatre 24 25

14 Area Overview Griffith Observatory DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2014 Population 44, ,721 1,038, Households 21, , , Average Household Size Daytime Population 9, , , Owner Occupied Housing Units 22.51% 17.71% 19.96% 2014 Renter Occupied Housing Units 77.49% 82.29% 80.04% 2014 Vacant 1.19% 2.68% 3.19% Many of Los Feliz s hilltop homes host celebrity inhabitants. $ 0 - $14, % 19.3% 20.5% $ 15,000 - $24, % 15.8% 15.1% $ 25,000 - $34, % 12.6% 11.6% $ 35,000 - $49, % 14.1% 13.4% $ 50,000 - $74, % 15.5% 15.0% $ 75,000 - $99, % 7.8% 8.1% $100,000 - $124, % 5.3% 5.6% $125,000 - $149, % 2.9% 3.2% $150,000 - $199, % 2.9% 3.2% $200,000 - $249, % 1.4% 1.5% $250, % 2.5% 2.8% 2014 Median Household Income $47,011 $37,165 $37, Per Capita Income $40,781 $25,768 $26, Average Household Income $82,049 $61,733 $64,618 Los Feliz s cafes, diners, and envelopepushing culinary artists contribute to the neighborhood s chic reputation

15 BRANDON MICHAELS GROUP BRANDON MICHAELS Sr. Managing Director Investments Director, National Retail Group Tel: (818) Fax: (818) License: CA # ANDREW LEFF Senior Associate Director, National Retail Group Tel: (818) Fax: (818) License: CA: