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2863-2867 S. Robertson 3-Unit Retail/Office Property in West Los Angeles
OFFERING MEMORANDUM
Israel Tabi, Vice [email protected]: 02019396
Aaron Biston, [email protected]: 00829493
CONFIDENTIALITY AGREEMENT & DISCLAIMER: The 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 Rodeo Investments and should not be made available to any other person or entity without the written consent Rodeo Investments. 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. Rodeo Investments has not made any investigation, and makes no warranty or represen-tation, with respect to the income or expenses for the subject property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with local 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 the Marketing Brochure has been obtained from sources we believe to be reliable; however, Rodeo Investments has not verified, will not verify, and does not guarantee any of the information contained herein, nor has Rodeo Investments conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or com-pleteness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein and to conduct his/her own investigations.
DISCLOSURES: Aaron Biston and Israel Tabi are the owners and sellers of the subject property. The sellers are licensed CA real estate agents, however they are only acting as principals in this transaction.
NON-ENDORSEMENT NOTICE: Rodeo Investments is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corpora-tion’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Rodeo Investments, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Rodeo Investments, and is solely included for the purpose of providing tenant lessees information about this listing to prospective customers.
2863–2867 South Roberston BoulevardLos Angeles, CA 90034
ContentsExecutive Summary 01
Property Description 02
Financial Summary 03
Market Comparables 04
Market Overview 05
EXECUTIVESUMMARY
THE OFFERING AT A GLANCE
PRICE: $1,999,000 PRICE/SF: $726.91CAP RATE: 4.31%
UNITS: 3 GROSS/RENTABLE SF: 2,750 SF LOT SIZE: 4,250 SF (0.098 AC) PARKING: 6 SPACES
FULLY REMODELED UNITSEXTERIOR IMPROVEMENTSGREAT FRONTAGE ON MAJOR BLVD NEAR EXPO LINE/CULVER CITY
The OfferingRodeo Investments is proud to present for sale 2863–2867 South Roberston Boulevard, a three-unit commercial storefront property ideal for a variety of retail and office uses, with one com-pletely remodeled vacant unit offering the perfect opportunity for an owner/user. Located just off of the 10 Freeway on South Roberston Boulevard and near the Culver City station on the Metro Expo Line, the property benefits from proximity to some of the most dynamic neighbor-hoods on the Westside of Los Angeles, including Culver City, Century City, Beverly Hills, and Santa Monica, as well as LAX Airport.
The property consists of three, ±915-square foot units totaling 2,750 square feet of gross leasable area, and is situated on a 4,250-square foot lot with 50 feet of frontage along South Robertson Boulevard. Almost $60,000 has been invested in the property, resulting in completely remodeled units and a number of interior and exterior improvements. Unit 2863 can be delivered vacant for an owner-user or occupied at pro forma rents.
2863–2867 South Robertson Boulevard sees a daily traffic count of 44,942 cars on a major thoroughfare lined with local eateries and shops. Close proximity to numerous schools and the Kaiser Permanente West Los Angeles Medical Center also offers access to a large daytime population. The property lies within walking distance to the Metro Expo Line and Downtown Culver City, home to the Helms Bakery District, PLATFORM, and many more trendy dining and shopping opportunities. Executive Summary � 5
� Owner-User OpportunityOne fully renovated unit can be delivered vacant and of-fers the perfect opportunity for an owner-user to establish a retail, office, showroom, or warehouse space.
� Retail/Office Storefront2863–2867 South Roberston Boulevard presents an oppor-tunity to acquire three retail/office units near Culver City. Area market drivers position it to command healthy rents.
� Fully Remodeled UnitsAll units have been fully remodeled and contain brand new HVAC, flooring, plate glass and windows, lighting, paint, and a private restroom.
� Exterior ImprovementsNumerous capital improvements have been made to the exterior of the property, including updates to the parking lot, concrete, exterior lighting, and the roof (repaired with a 10-year warranty).
� Prime LocationThe property is located in the South Robertson neighbor-hood of Los Angeles and is just steps away from Culver City, the Metro Expo Line, and the 10 Freeway.
� High Traffic2863–2867 South Robertson Boulevard sees a daily traffic count of 44,942 cars, and the nearby 10 Freeway ramp sees a daily traffic count of 253,000 cars.
Investment Highlights
6 � 2863–2867 S. Robertson
� Access to the Westside2863–2867 South Robertson Boulevard is ideally positioned near dynamic Westside neighborhoods, including Culver City, Century City, Beverly Hills, and Santa Monica, as well as near LAX Airport.
� WalkabilityThe area’s high walkability score of 82/100 means that most errands can be accomplished on foot. Helms Bakery District, PLATFORM, and many more trendy dining and shopping opportunities also lie a few minutes away.
� Transit-OrientedThe subject property is a short walk from the Culver City Metro Expo Line station, which connects Downtown Los Angeles and Santa Monica.
PROPERTY DESCRIPTION
2863-2867 S. ROBERTSON BLVD
PROPERTY DETAILSAddress: 2863-2867 South Robertson Boulevard
Los Angeles, CA 90034APN: 4301-003-024Year Built: 1950Stories: OneLand Use: Office/RetailUnits: ThreeMin. Divisible: 915 SF
SITE DESCRIPTION
Gross/Rentable SF: 2,750 SFLot Size: 4,250 SF (0.098 AC)Zoning: C4-1VL-CPIOParking: 6 Spaces, or 2.2/1,000 SF
Property DetailsCONSTRUCTION
Roof: Repaired with 10-Year WarrantyExterior: Stucco/BrickFrame: WoodParking Lot: Revitalized with Two Slurry Coats
TENANT RESPONSIBILITIESUtilities, maintenance of plumbing/electrical/HVAC systems, windows and glass, and all interiors
LANDLORD RESPONSIBILITIES
Property tax, insurance, roof, structure, and parking lot
Property Description � 9
Fully RemodeledCurrent ownership has spent almost $60,000 in capital improve-ments for the property. These capital upgrades include:
• All new HVAC• All new flooring• All new windows
& doors• All new bathrooms• All new paint
• Renovated parking lot & concrete
• Interior & exterior lighting• 10-year roof warranty
10 � 2863–2867 S. Robertson
Site Plan
Property Description � 11
SUBJECTPROPERTY
CENTURYCITY
SUBJECT PROPERTYCULVER CITY
BEVERLYWOOD
BEVERLY HILLS
WEST LA CENTURY CITY
MIRACLE MILE
WEST HOLLYWOOD
405
10
110
14 � 2863–2867 S. Robertson
FINANCIAL SUMMARY
MAY 2019 Rent RollUNIT SQUARE FEET
BEGIN DATE
END DATE
MONTHLY RENT OPTIONS & NOTES
2863 915 9/1/2016 8/31/2019 $1,708.88 No option offered. Can be delivered vacant by end of the term or occupied at $3,200 a month.
2865 915 5/1/2019 4/30/2022 $3,200.00 3% increase every year. One 3 year extension option with 3% increase every year.
2867 915 10/1/2018 1031/2021 $3,000.00 No option offered.
2,750 $7,908.88
LOAN PROGRAM DETAILSFixed-Rate Payment Period: 3 Y 5 Y 7 Y 10 Y 15 Y 20 Y
ARM Margin
Minimum DSC
Maximum LTV
Adj.-Rate Payment Period: 27 Y 25 Y 23 Y 20 Y N/A N/A
Total Term/Amortization: 30/30 30/30 30/30 30/30 15/15 20/20
Prepay Premium (% per year): 321 3221 43321 544321 544322221 554444332222111
LOAN PRODUCT NAME Indicated Initial Fixed Period Rates and AMR Margins for Loans at or ABOVE $2,500,000
Premium-45 LS: 4.095% 4.085% 4.165% 4.265% 4.225% 4.285% 2.325% 1.30 45%
Premium-55 LS: 4.270% 4.260% 4.340% 4.440% 4.440% 4.460% 2.500% 1.30 55%
Premium-75 LS: 4.520% 4.510% 4.590% 4.690% 4.650% 4.710% 2.750% 1.30 75%
LOAN PRODUCT NAME Indicated Initial Fixed Period Rates and AMR Margins for Loans at or BELOW $2,500,000
Premium-45 LS: 4.570% 4.560% 4.640% 4.740% 4.700% 4.760% 2.800% 1.30 45%
Premium-55 LS: 4.745% 4.735% 4.815% 4.915% 4.875% 4.935% 2.975% 1.30 55%
Premium-75 LS: 4.995% 4.985% 5.065% 5.165% 5.125% 5.185% 3.225% 1.30 75%
Summary of Loan Terms CONTACT: Ron LeiboviciPrivate Wealth Management
Union Bank213-236-5427 [email protected]
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Financial Overview
INCOME CURRENT PRO FORMA
Potential Gross Income: $94,906.56 $112,800Less Expenses: $26,659 $26,659Net Operating Income: $68,247.60 $86,141
EXPENSES CURRENT PRO FORMA
Real Estate Taxes: $23,909 $23,909Insurance: $2,750 $2,750Utilities/Maintenance:* $0 $0Total Expenses: $26,659 $26,659Expenses/SF: $9.69 $9.69
*All utilities and maintenance costs are paid by tenants.
Annualized Operating Data
List Price: $1,999,000 Gross Leasable Area (GLA): 2,750 SFPrice/SF: $726.91Cap Rate – Current: 3.41%Cap Rate – Pro Forma: 4.31%Lot Size: 4,250 SFYear Built: 1950
2863–2867 S. Robertson Boulevard
LOAN PROGRAM DETAILSFixed-Rate Payment Period: 3 Y 5 Y 7 Y 10 Y 15 Y 20 Y
ARM Margin
Minimum DSC
Maximum LTV
Adj.-Rate Payment Period: 27 Y 25 Y 23 Y 20 Y N/A N/A
Total Term/Amortization: 30/30 30/30 30/30 30/30 15/15 20/20
Prepay Premium (% per year): 321 3221 43321 544321 544322221 554444332222111
LOAN PRODUCT NAME Indicated Initial Fixed Period Rates and AMR Margins for Loans at or ABOVE $2,500,000
Premium-45 LS: 4.095% 4.085% 4.165% 4.265% 4.225% 4.285% 2.325% 1.30 45%
Premium-55 LS: 4.270% 4.260% 4.340% 4.440% 4.440% 4.460% 2.500% 1.30 55%
Premium-75 LS: 4.520% 4.510% 4.590% 4.690% 4.650% 4.710% 2.750% 1.30 75%
LOAN PRODUCT NAME Indicated Initial Fixed Period Rates and AMR Margins for Loans at or BELOW $2,500,000
Premium-45 LS: 4.570% 4.560% 4.640% 4.740% 4.700% 4.760% 2.800% 1.30 45%
Premium-55 LS: 4.745% 4.735% 4.815% 4.915% 4.875% 4.935% 2.975% 1.30 55%
Premium-75 LS: 4.995% 4.985% 5.065% 5.165% 5.125% 5.185% 3.225% 1.30 75%
Financial Summary � 17
MARKET COMPARABLES
2863–2867 S. Robertson Boulevard
ON MARKET PROPERTIES1 5872 Smiley Drive
SOLD PROPERTIES2 8832–8834 W. Pico Boulevard
3 207–209 S. Robertson Boulevard
4 8711–8713 Venice Boulevard
5 8540–8542 Washington Boulevard
COMPARABLESSales
2863 Robertson sales comps
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2863 Robertson sales comps
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Market Comparables � 21
Sale
s C
ompa
rabl
es 2863–2867 S. ROBERTSON BOULEVARD, LOS ANGELES, CA 90034
Sale Date Sale Price GLA Price/SF Lot Size Year Built
N/A $1,999,000 2,750 SF $726.91 4,250 SF 1950
1. 5872 SMILEY DRIVE, CULVER CITY, CA 90232
Sale Date Sale Price GLA Price/SF Lot Size Year Built
5/2019 $2,695,000 3,085 SF $873.58 3,920 SF 1957
ON MARKET PROPERTIES
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SOLD PROPERTIES
2. 8832–8834 W. PICO BOULEVARD, LOS ANGELES, CA 90035
Sale Date Sale Price GLA Price/SF Lot Size Year Built
5/2019 $2,399,000 2,400 SF $999.58 4,792 SF 1936
3. 207–209 S. ROBERTSON BOULEVARD, BEVERLY HILLS, CA 90211
Sale Date Sale Price GLA Price/SF Lot Size Year Built
10/13/2017 $3,900,000 3,727 SF $1,046.42 5,332 SF 1952
4. 8711–8713 VENICE BOULEVARD, LOS ANGELES, CA 90034
Sale Date Sale Price GLA Price/SF Lot Size Year Built
8/31/2018 $2,800,000 1,283 SF $2,182.39 4,792 SF 2004
5. 8540–8542 WASHINGTON BOULEVARD, CULVER CITY, CA 90232
Sale Date Sale Price GLA Price/SF Lot Size Year Built
9/14/2018 $3,100,000 3,150 SF $984.13 4,051 SF 1956
Market Comparables � 23
MARKET OVERVIEW
SOUTHROBERTSONThe subject property is located along the Robertson Boulevard Corridor, a primary commercial arterial, in an area showing signs of revitalization. Robertson Boulevard was recently selected to be transformed through Mayor Garcetti’s “great streets initiative” program with the aim to enhance neighborhood char-acter, improve access and mobility, and increase economic activity. Additionally, close proximity to Cul-ver City puts the Metro Expo Line, the Helms Bakery District, PLATFORM, and many more trendy dining and shopping opportunities within walking distance.
Reynier Park
Letterpress Chocolate
STEPS FROM CULVER CITY
Helms Bakery District
Transit & Pedestrian Friendly
82Walk Score – Very WalkableMost errands can be accomplished on foot
63Transit Score – Good Transit 14 minute walk from the Metro Expo Line Culver City Station
Metro Expo Line
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Location Overview
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Location Highlights
� Hamilton High SchoolYards away from almost 3,000 students and staff at Hamilton High School
� Kaiser Permanente West L.A. Medical CenterWithin 1 mile of thousands of patients and staff at Kaiser Perma-nente West Los Angeles Medical Center
� Caste Heights Elementary SchoolWithin 0.5 of a mile from 700 students and staff at Castle Heights Elementary School
� Shenandoah Street Elementary SchoolWithin 0.5 of a mile from 700 students and staff at Shenandoah Street Elementary School
� 10 Freeway EntranceWithin 0.4 of a mile to the 10 Freeway Robertson entrancem, which has an AADT (annual average daily traffic) count of over 500,000 vehicles a day
� Helms Bakery District/Culver CityWithin 0.5 of a mile from the Helms Bakery District and directly adjacent to Culver City, which boats over 1.9 million square feet of new office and retail
POPULATION 1 MILE 3 MILE 5 MILE
2019 Total Population: 37,741 317,762 896,060
2024 Population: 37,832 321,357 909,784
Pop. Growth 2019–2024: 0.24% 1.13% 1.53%
Average Age: 37.8 39.3 39.1
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2019 Total Households: 15,092 135,637 384,445
HH Growth 2019–2024: (0.05%) 0.99% 1.41%
Median Household Inc: $74,480 $74,217 $71,718
Avg Household Size: 2.4 2.3 2.2
2019 Avg HH Vehicles: 2 2 1
HOUSING 1 MILE 3 MILE 5 MILE
Median Home Value: $922,221 $920,467 $856,091
Median Year Built: 1958 1958 1960
Demographics
28 � 2863–2867 S. Robertson
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Nearby AmenitiesLANDMARKS 1 Rancho Park Golf Course 2 Hillcrest Country Club 3 Castle Heights Elementary School 4 Hamilton High School 5 Reynier Park 6 Shenandoah Elementary School 7 Kaiser Permanente 8 Museum of Jurassic Technology 9 ArcLight Cinemas 10 Southern California Hospital
DINING/NIGHTLIFE 1 The Bagel Factory 2 Undergrind Cafe 3 Dolce Isola 4 Mandrake 5 Cognoscenti Coffee 6 Coolhaus Shop 7 Father’s Office 8 Bar Nine 9 The Wallace10 Akasha11 Cafe Vida12 Versailles Cuban Restaurant13 Overland Cafe14 Kogi Taqueria15 n/naka
SHOPPING 1 Vons 2 Sprouts Farmers Market 3 Helms Bakery District 4 Co-Opportunity Market 5 PLATFORM 6 Trader Joe’s
TRANSIT M Metro Expo Line
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Century CityCentury City is a dense commercial district surround-ing the historic Fox Studios and is marked by high-rises, entertainment industry offices, and a wealth of opportunities for shopping, dining, and nightlife. The Westfield Century City—which recently underwent a $1 billion makeover—is a sprawling mall and shop-ping center, anchored by Eataly, Macy’s, Apple, and other prestige retailers.
Culver CityCulver City—long known as the home of Sony Pictures, NPR West, and other major media studios—has emerged as a new home to trendsetting companies like Nike and Apple. Lining Culver City’s walkable streets are high-end boutiques and aesthetically minded shops, like the highly curated outdoor mall PLATFORM, Bar Nine, Bird, the Helms Bakery District, and more. The Metro Expo Line connects the neighborhood to Santa Monica and Downtown Los Angeles, and bike paths also offer out-doorsy residents a less gridlocked route to the beach.
Access to L.A.’s top Westside neighborhoods
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Santa MonicaSanta Monica is one of Southern California’s most famous beachfront cities, home to Santa Monica State Beach, the Santa Monica Pier, and Pacific Park. Along Ocean Ave-nue, alfresco dining spots, pastel-colored hotels, palm-lined Palisades Park, and the dis-tinctive Tongva Park provide enviable beach hangouts. At the heart of the city’s walkable 8.3 square miles is downtown’s Third Street Promenade, a shopping and entertainment hub consisting of farmers markets, restaurants, boutiques, bars, and movie theaters. A thriving arts and theater scene can be found in the Mid-City district near the Metro Expo Line, which connects Santa Monica with Downtown Los Angeles.
Beverly HillsBeverly Hills, the idyllic home of Hollywood’s elite, also boasts some of L.A.’s finest luxury hotels, upscale restaurants, and boutiques. Rodeo Drive sits at the heart of a highly walkable district offering numerous shopping and fashion destinations, as well as other amenities including the Beverly Gardens Park, muse-ums, and celebrity home tours. Beverly Hills’ central location makes other high-end neighborhoods—like Westwood and West Hollywood—easily accessible.
Aaron Biston, [email protected]
Israel Tabi, Vice President646.671.3587
2863-2867 S. Robertson 3-Unit Retail/Office Property in West Los Angeles