9570 pico boulevard -...
TRANSCRIPT
21,866 SQ. FT. CREATIVE OFFICE BUILDINGSALES OFFERING MEMORANDUM
OWNER-USER OR INVESTOR OPPORTUNITY7,309 SF DEVELOPMENT PAD WITH BUILDING
JOEL D. FRANKSenior Vice PresidentLic. 0967530T +1 310 [email protected]
ALEX BERGESONAssociateLic. 01934076T +1 310 [email protected]
CBRE Inc. | 1840 Century Park East, Suite 900 | Los Angeles, CA 90067 | www.cbre.com/beverlyhills
FOR MORE INFORMATION PLEASE CONTACT:
9570 PICO BOULEVARD & 1412 EDRIS DRIVELOS ANGELES | CALIFORNIA (BEVERLY HILLS BORDER)
9570 PICO | LOS ANGELES, CA
3
EXECUTIVE SUMMARY$13,000,000 ($595/SF)CBRE, Inc. is pleased to present the opportunity to acquire the 100% fee simple interest in 9570 Pico Boulevard (the “Property”); a highly desirable Beverly Hills adjacent creative owner/user or investment property plus a land parcel for future development.
&
HISTORIC HOME
OF SAMUEL GOLDWYN FILMS
STEVEN EHILICH, AIA DESIGN
PREMIER LOCATION
13,773
7,309
SQ. FT. OF HIGHLY IMPROVED, MOVE-IN-READY CREATIVE SPACE
SQ. FT. DEVELOPMENT SITE
BEVERLY HILLS ADJACENT
BEVERLY HILLS
CENTURY CITY
7,309 SF lot with 34 spaces
9570 PICO | LOS ANGELES, CA
5
OWNER-USER OPPORTUNITY• 2 full floors (2nd & 3rd) totaling 13,773 SF of creative
space are currently available
• Features creative, open plan environment featuring raw brick, glass and steel.
• Open floor plan and expansive windowline provide ample natural light
• Unique opportunity to own a historic treasure
• Ultimately gain possession of 6,930 RSF 4th floor (Samuel Goldwyn Films) for owner use or re-lease at premium rent
9570 PICO | LOS ANGELES, CA
7
INVESTOR OPPORTUNITYSAMUEL GOLDWYN FILMSLEASEBACK (ONE YEAR PLUS TWO, ONE YEAR OPTIONS)
Samuel Goldwyn Films (formerly The Samuel Goldwyn Company) is an American independent film company founded by Samuel Goldwyn, Jr., the son of the Hollywood business magnate/mogul, Samuel Goldwyn.
The company has produced and distributed countless films including: The Secret Life of Walter Mitty, Master and Commander: The Far Side of the World, The Whistleblower, The Preachers Wife, Mao’s Last Dance, The Last of Robin Hood, Super Size Me, The Squid and the Whale, A Year in Champagne, and many, many more.
• $13,000,000 ($595/SF)
• $581,628 pro forma NOI
• 6,930 SF sale-leaseback from Samuel Goldwyn Films
• Strong upside through lease-up in West LA’s burgeoning technology/media, and entertainment sectors
9570 PICO | LOS ANGELES, CA
8
DEVELOPMENT OPPORTUNITY• 1412 Edris Drive, Los Angeles, CA
• 7,309 SF (0.17 ac)
• Zoned LAR3 (Multiple Residence–Apartment Houses)
• APN: 4306-002-012
• Long term intrinsic value or immediate upside potential
• Currently serving as 34 stall parking lot
CURRENT BUILDING
DEVELOPMENT PARCEL
Rear Alley
PICO BOULEVARD
9570 PICO | LOS ANGELES, CA
9
HOLLYWOOD HILLS
MR.C HOTEL
BEVERLY HILLS TRIANGLE
SOUTH BEVERLY DRIVE SHOPPING DISTRICT
RALPHS ANCHORED RETAIL VENTER
9570 PICO
1412 EDRIS
9570 PICO | LOS ANGELES, CA
10
PROPERTY SPECIFICATIONSAddress 9570 Pico Blvd &1412 Edris Dr, Los Angeles
Location SEC of W Pico Blvd. & Edris Dr.
Building Type Creative Office
Year Built/Renovated 1960/1999 & 2015
Construction Steel and Structural Brick
Net Rentable Area (RSF) 21,866
Building Parcel 6,996 SF (0.16 ac)
Development Parcel 7,309 SF (0.17 ac)
Stories 4 with Subterranean Parking
Elevator One, 4-Stop hydraulic
Parking Spaces 50 Spaces (2.5/1,000)
Current Vacancy (RSF) 13,773 (2nd & 3rd Floors)
APN(s) 4306-002-022 (Building) & 4306-002-012 (Parking)
Zoning LAC4 (Building) & LAR3 (Parking)
Foundation Concrete slab with vertical, poured concrete support. Lightweight concrete sub-floors
Wall Support Structural Brick
Curtain Wall Tempered plate glass and wood frame & stucco along north & east walls
Roofing Four-ply built up flat roof over plywood sheathing, steel "I" beams & vertical concrete columns
HVAC Forced air heating and central air conditioning from roof mounted units
Stairwells Two, steel framing with concrete steps
Electrical 400 amp, 240 volt, 3 phase service
9570 Pico was re-designed by award winning architect Steven Ehrilich in 1999. Honored with the AIA National Firm Award in 2015, Ehrlich Architects is a versatile practice that has earned an international reputation for design excellence and an exemplary professional culture. Founded in 1979 as a tiny residential studio, the Los Angeles-based firm is a 40 member team that has mastered building types ranging in scale from houses to courthouses, including libraries, university centers, corporate and government facilities. Ehrlich Architects has been recognized with more than 150 awards including nine national AIA awards, and the title of AIA California Council Firm of the Year in 2003.
STEVEN EHRLICH ARCHITECTS
9570 PICO | LOS ANGELES, CA
11
BUILDING SUMMARY
1st FLOOR 2ND FLOOR
3RD FLOOR 4th FLOOR
Subterranean 16 Parking Spaces
Floor 1 1,163 RSF
Floor 2 6,843 RSF
Floor 3 6,930 RSF
Floor 4 6,930 RSF
Total 21,866 RSF
9570 PICO | LOS ANGELES, CA
12
Tenant Suite Square FootageCommencement
DateExpiration Date Monthly Rent Increases
Lease Options
Lease Type Use Parking
JV Productions 100 1,163 2014-01-01 2015-12-31 $2,747.58 3% annual None FSG Office 2 spaces
Vacant 200 6,843 n/a n/a $22,239.75 3% annual n/a FSG Office n/a
Vacant 300 6,930 n/a n/a $22,522.50 3% annual n/a FSG Office n/a
Samuel Goldwyn Company 400 6,930 2015-06-01 2016-05-31 $15,592.50 3% annual 2, 1 year FSG Office 8 spaces
Total 21,866 $63,102.33
Rental Income1 $757,228
Parking Income2 $90,000
Total $847,228
Insurance3 $12,100
Elevator Contract3 $2,100
HVAC Contract3 $4,500
Janitorial Services3 $22,000
Landscaping3 $2,500
Security3 $3,200
Trash3 $8,200
Utilities3 $55,000
Property Taxes4 $156,000
Total $265,600
Net Operating Income $581,628
RENT ROLL
2016 INCOME & EXPENSE PROFORMA
Assumptions:1. Based on $3.25/SF Rent for 2nd & 3rd Floors2. Based on $150/stall X 50 Stalls3. Per 2014 Expenses4. $13MM X 1.2% mil rate
9570 PICO | LOS ANGELES, CA
13
MARKET ANALYSIS | SALES COMPARABLES
1 2125 Arizona Ave, Santa Monica$6,450,000 ($604/SF)2014-11-18
2 8000 Beverly Blvd, West Los Angeles$8,000,000 ($653/SF)2014-10-14
3 121 S Beverly Dr, Beverly Hills$8,500,000 ($1,000)2013-08-30
4 1940 Century Park East, Century City$23,000,000 ($500/SF)2014-04-01
5 11333 Iowa Ave, West Los Angeles$5,195,000 ($655/SF)2014-06-04
6 9599-9601 Jefferson Blvd, Culver City$6,100,000 ($571/SF)2014-07-23
7 2800 W Olympic Blvd, Santa Monica$8,850,000 ($575/SF)2014-06-06
8 1919 Santa Monica Blvd, Santa Monica$26,000,000 ($553/SF)2013-10-09
9 9940-9944 Santa Monica, Beverly Hills$11,500,000 ($860/SF)2013-12-05
10 10309 Santa Monica Blvd, West Los Angeles$7,200,000 ($860/SF)2013-12-05
11 10630 Santa Monica Blvd, West Los Angeles$15,100,000 ($847/SF)2013-07-25
12 9378 Wilshire Blvd, Beverly Hills$29,500,000 ($929/SF)2014-10-31
9570 PICO | LOS ANGELES, CA
14
MARKET ANALYSIS
• Sales & leasing market for commercial properties in Beverly Hills and adjacent areas has returned to pre-recession peak levels
• Average asking rents in Beverly Hills have reached $4.40/SF, fully serviced
• Average occupancy levels in Beverly Hills have reached 94%
• Asking rents in 9701 Wilshire, 9665 Wilshire, 9601 Wilshire, 9595 Wilshire, 9560 Wilshire go above $6.00/SF, fully serviced
• South Beverly Drive District reaches new highs for occupancies & rents
• Nearby 9911 Pico conversion to residential evidences huge nearby re-investment.
• Pico Boulevard commercial district continues to become more vibrant & pedestrian oriented; Mr. C’s hotel thriving
9570 PICO | LOS ANGELES, CA
15
Within 1 mi of Property Within 3 mi of Property
Population 35,049 317,442
Households 16,142 149,549
Average Age 42.23 40.59
Median Household Income $73,436 $63,019
2015 Estimated Households
- Income Less than $15,000 (13.1%) (13.5%)
- Income $15,000 - $24,999 (8.1%) (8.3%)
- Income $25,000 - $34,999 (5.5%) (7.9%)
- Income $35,000 - $49,999 (8.1%) (11.3%)
- Income $50,000 - $74,999 (16.3%) (16.4%)
- Income $75,000 - $99,999 (11.7%) (11.7%)
- Income $100,000 - $124,999 (9.3%) (8.5%)
- Income $125,000 - $149,999 (5.6%) (5.2%)
- Income $150,000 - $199,999 (6.4%) (6.4%)
- Income $200,000 - $249,999 (3.2%) (2.8%)
- Income $250,000 - $499,999 (7.6%) (5.3%)
- Income Over $500,000 (5.3%) (2.8%)
Est. Population Growth 2015-2020 3.81% 3.81%
Est. Household Growth 2015-2020 3.84% 4.00%
DEMOGRAPHICS
LOCATION OVERVIEW• Dense Residential District with Retail Support
• Next to Ralph’s Center and countless amenities
• Walking distance to Pico Boulevard Shopping District
• Directly Adjacent to Beverly Hills
• Directly Adjacent to Century City
• Excellent street parking
• Transit line bus service
9570 PICO | LOS ANGELES, CA
16
LOCATION OVERVIEW | RETAIL AMENITIES MAP
CRAZY FISH
PAT’S RESTAURANT
DOHENY KOSHER MEAT MARKET
SUSHI SASBUNE
SHANGHAI DIAMONDGARDEN
LABELS TABLE DELI
KOLAH FARANGI
BEVERLYWOOD BAKERYTHE MILKY WAY
FISH GRILL
YEN SUSHI
AT AVALON HOTEL
SHANGHAI DIAMOGARDEN
FISH GRILL
YEN SUSHI
AT AVALON HOTEL
PIPIPIPIPPIPICOCOCOCOCOOCCCCBBBBBBBBBBLVLVLLLLLVLVLVVVVLVLVLVLVLVLVVDDDDVVVDDDDDVVVVVVVDDDDDDDDDVLVVVVDDDDDDDDDDD
PIPIPIPIPPIPICOCOCOCOCOCOOCCCCVVVVVVDDDDD
BBBBBBBBBBBLVLVLVLVLVLVLLVLVVVLVVLVDDDDDDDDDDVDDDDDDDDDDDDD
PIPIPIPIPIPPIPIPIPP COCOCOOCOCOCOCOC BBBBBBBBLVLVLVLVLVLVLVLVLVLVVLVVDDDDDPIPIPIPIPPIPIPIPIPP COCOCOCOCOCOCOCOO BBBBBBBBBLVLVLVLVLVLVLVLVLVLVVVLVVLVDDDDD
BE
BE
BE
BE
BE
BE
BE
BBBBBBBBBVVV
EV
EV
EEV
EEVVVVV
RW
RRW
RW
RW
RW
RWW
RW
RWW
RWWW
ILILLLLLILILLLLLLL L
DDDDDDDRRRRRRRRRRRRRRRRR
BE
BE
BE
BE
BE
BEE
BEE
BBBBBBBBBBBV
EV
EV
EEV
EV
EEEV
EEEV
EV
EV
EEV
EEVV
RW
RW
RW
RW
RW
RW
RW
RW
RWW
RWW
RWWW
RILILLLILLLILILLI
L L LL LL LLLRRRRRRRRR
DR
DR
DR
DR
DDDDDDDRRRRR
OOLOOLOLOLOO YMYMYMYMMMMMMMMPIPIPIPIIPIPIPIPIP CCCCCCCCCCCC BLBLBLBLBLBLBLBBLBBBLB VDDDVDVDVDVDVDVDDDDOOLOOLOLLOLOO YMYMYMYMYMMMMMMMMMMMMPIIPIPIPIIPIIIPIPIPIP CCCCCCCCCCCCC BLBLBLBLBLBLBLBLBLBBLBLBLLVDDDVDVDVDVDVDVDVDDVD
OLOLOLOLOLOOLOLOLLYMYMYMYMYMYMYMYMMYMYMYMYMYMYMPIPIPPIPPPIPPIPPPPP CCCCCCCCCCCC BLLBLLLVDVDVDVDVDDDDDDVOLOLOLOLOLOOLOLOOLOLOOO YMYMYMYMYMYMYMYMYMYMYMYYYYMY PIPIPIPIPIPIPIPPIPIPPPIICCC CCC CCCCCCC BLBLBLBLBLLVDVVDVVDVDVDVDVDDDVV
EEEVE
VE
VEEEER
LRL
RL
RL
RL
RL
RLL
RL
RLL
RL
RL
RLY Y YYYYY YYYYYY D
RDR
DR
DR
DR
DR
DR
DR
DD
BEBEBEEVVVBEBEBBBBEB
LLLLRLLLLYYY YYYYY D
RDR
DR
DR
DR
DR
DR
DR
DD
BEBEBBBBBBBBEBEBEEVE
VE
VEE
VEER
LRL
RL
RL
RL
RL
RL
RL
RL
RLL
RL
RL
RL
RLYYYYYYYYYY
BEBEBBBBB
BBBBBBBBBBBBBEEEEEEEEEEEEEEEVVVVVEVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV
EEEEEERRRRRRRRRRRRRRRRRLLLLLLLLLLYYYLLLYLLLLLYYYYYYYYYYYYYYYYY
YYY DDDDDDDDDDDDDDD
RRRRRD
RD
RRRRRRRRRRRRRV
EV
EV
EVVVVVVV
RL
RL
RLLL
VE
VE
VEE
VER
LR
LR
LR
LR
LLLRRRRRR
YYYYYYB
EB
EEEEEB
EEB
EEEB
VVVVVVVVB
EB
EB
EB
EEEBB
VVVBBBBBBBB
RRRRRLLYYYYYYYYYYYY
DR
DRR
DR
DDR
DRR
DR
DR
DR
DRR
DR
DDDDDDDDRRRRRRR
ALALALALALLLALLALLCOCOOCOCOCOCOCOCOCOC TTTTTTTTTTTTTTTTTTTTT SSSSSSSSSSTTTTTTTTTTTALALALALALALALALLALLLA COCOCOCOOCOCOCOCOCOC TTTTTTTTTTTTTTTTTT SSSSSSSSSSSTTTTTTTTTTTTT
CACAAACAAAAACAAAASHSSHSHHSHSHHSH OIOOIOOOIOOOOIOIO SSSSSSSSSSSSTTTTTTTTTCACAAACACAACAACAAAAACASHSSHSHHSHSHHHSHIOIOOIOOOIOIOIOIOO SSSSSSSSSSSSSTTTTTTTTTTT
SOUTH BEVERLY DRIVE SHOPPING DISTRICT
9570 PICO | LOS ANGELES, CA
17CBRE Inc. | 1840 Century Park East, Suite 900 | Los Angeles, CA 90067 | www.cbre.com/beverlyhills
LOS ANGELES | CALIFORNIA
JOEL D. FRANKSenior Vice PresidentLic. 0967530T +1 310 [email protected]
ALEX BERGESONAssociateLic. 01934076T +1 310 [email protected]
FOR MORE INFORMATION PLEASE CONTACT:
21,866 SQ. FT. CREATIVE OFFICE BUILDING
PLUS 7,309 SQ. FT. RESIDENTIAL PARCEL
9570 PICO BOULEVARD & 1412 EDRIS DRIVE