figueroa - loopnet...6 7 property detail 5526 n figueroa avenue located next to 5532 n figueroa,...
TRANSCRIPT
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EXCLUSIVE ADVISORS
Dana S. Brody Senior Vice President T +1 213 239 6210 [email protected] CA Lic. # 01429001
Nicole Mihalka Managing Director T +1 213 239 6076 [email protected] CA Lic. # 01322414
515 South Flower StreetSuite 1300Los Angeles, CA 90071
T A B L E O F
C O N T E N T S
I N V E S T M E N T O V E R V I E W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
P R O P E R T Y D E TA I L . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
A R E A O V E R V I E W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2
M A R K E T O V E R V I E W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7
M A R K E T T R E N D S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4
A R E A D E V E L O P M E N T S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6
V A L U A T I O N S U M M A R Y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9
5 5 2 6 - 5 5 3 2
h i g h l a n d p a r k
Figueroa
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Investment Overviewj l l i s pl e a s e d to e xc l u s i v e l y o f f e r th e o ppo rtu n i ty to a c q u i re 5526 & 5532 n f i gu e ro a, tw o c o n ti gu o u s f re e s ta n d i n g b u i l d i n gs a t th e c o rn e r o f f i gu e ro a & ro s e l a w n, i n th e h e a rt o f h i gh l a n d pa rk .
Home to a number of LA’s hippest retail tenants, Highland Park is rapidly experiencing a gentrification like those seen previously in the now-thriving and trendy neighborhoods of Silver Lake and Echo Park.
Situated along Figueroa Street, the neighborhood’s main artery, the properties offer investors and owner/users a rare opportunity to acquire two vacant buildings located near some of Los Angeles’ trendiest retail and restaurant tenants.
With compelling fundamentals in the Highland Park market and impressive appreciating property values, these assets offer a strong opportunity for buyers interested in creating a footprint in a burgeoning and rapidly growing neighborhood market.
5 5 3 2 N F i g u e r o a A v e n u e
At a Glance
5 5 2 6 N F i g u e r o a A v e n u eProperty Address 5526 N Figueroa St, Los Angeles, CA 90042
Year Built 1963
Building Size: (SF) 2,464
Lot Size (SF) 5,510
Vacancy Vacant
Zoning LAC2
Parking Count 8 spaces
Property Address 5532 N Figueroa St, Los Angeles, CA 90042
Year Built 1987
Building Size: (SF) 6,637
Lot Size (SF) 5,192
Vacancy Can be delivered vacant
Zoning LAC2
Parking Count 10 spaces
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Property Detail5526 n f i gu e ro a a v e n u e
Located next to 5532 N Figueroa, 5526 N Figueroa is an approximately 2,464 SF building built in 1963 on a 5,500 SF lot. With an attractive location along bustling Figueroa, this property will be delivered vacant and in shell condition. It has the potential to become a prime retail space, creative office or a restaurant.
Property Detail5532 n f i gu e ro a a v e n u e
5532 N. Figueroa offers over 6,637 SF of retail and office space, making it an excellent opportunity for an investor or owner/user. The recently improved creative office space on the second floor features exposed ceilings, polished concrete floors, and abundant glass and natural light throughout. All of the retail and office suites at the Property offer excellent income potential.
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Property Detail
N FIGUEROA STREET
roselawn place
roselawn place
N FIGUEROA STREET
5532 n figueroa
5526 n figueroa
5532 n figueroa
5526 n figueroa
n ave 55
bank of america
rosty
raffi’s bicycles
retail
autozone
medical
medical
residential
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Gimme Gimme Records
mason’s dumpling shop
the greyhound
highland theaters
RAFFI’S BICYCLES
cafe birdie
highland park bowl
5532 N Figueroa
5526 N Figueroa
la m
etro
gol
d li
ne
hwy 110
N FIGUEROA ANIMAL HOSPITALTIERRA DE LA CULEBRA PARK
MYSTIC DHARMA BUDDHIST TEMPLE
HIGHLAND PARK HARDWARE
HIGHLAND PARK STATION
KITCHEN MOUSE
little cave
MISTER HOLMES BAKEHOUSE
S AVE 57
N FIGUER
OA STR
EET
BENNER STREET
S AVE 57
S AVE 55
S AVE 59
prelude & dawn
HAYES AVENUE
MONTE VISTA STREET
CHASE BANK
highland park wine hippo
checker hall
rosty
fig & fifty
otoÑo blind barber afters ice cream chops sonomama pacific union
Area Destinations
kindness & mischief
triple beam pizza
redcar development
14 15
Area Overvieww e l c o m e to h i gh l a n d pa rk
HIGHLAND PARK is a diverse enclave of traditional cultures and trendy new amenities. Known for its charming mix of old and new, the neighborhood is building a reputation as a mecca for artists. Trendy shops, galleries, bars and restaurants continue to open outposts along the area’s main thoroughfares of Figueroa Street and York Boulevard.
Highland Park is rapidly experiencing a gentrification like that that seen in the sought-after, trendy, and affluent neighborhoods of Venice, Silver Lake and Echo Park.
• 5526 & 5532 N Figueroa are located along Highland Park’s main walkable thoroughfare with strong foot traffic
• Rapid neighborhood gentrification not unlike that seen previously in Silver Lake, Echo Park and Venice
• Over 20 new trendy retailers opened in Highland Park since 2013, illustrating shifting neighborhood demographic
• $90,000 average household income within 3-mile radius bodes well for retail and apartment fundamentals
• Ideally located along the 110-Freeway between Pasadena and Downtown Los Angeles, offering a daily traffic count north of 105,000 vehicles
• Located within 10 minutes of both Downtown’s and Pasadena’s growing employment hubs, with over 500,000 and 110,000 jobs, respectively
• The Metro Gold Line stop two blocks away from the properties provides access into DTLA within 15 minutes
Location Highlights
As a result, the neighborhood has had an amenity base shift towards retailers, restaurants, fitness boutiques and music venues that cater to a higher-income demographic who are flocking to the area to benefit from its convenient location 10 minutes north of DTLA, attractive mix of authentic and hip destinations, and relative affordability.
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Market Highlights
• 45.00 PSF NNN retail rent for newly signed leases, in line with neighborhood averages for Silver Lake
• 8.5% submarket apartment rent growth in 2017
• $42.00-$48.00 PSF asking rates for renovated office space with very limited supply
• Single-family home prices in Highland Park exceeding that of Greater LA for the first time
• Home prices in Highland Park have appreciated nearly 9% over 2016 prices, illustrating rapidly appreciating property values
• New construction townhomes selling out for over $700,000-$800,000 in record time on Figueroa, mere blocks from the Properties
HIGHLAND PARK CROSSFIT
MASON’S DUMPLING SHOP
GIMME GIMME RECORDS
SUNBEAM VINTAGE
POP PHYSIQUE
ETA
HOME STATE
HIGHLAND THEATERS
THE GREYHOUND GOOD HOUSEKEEPINGCIVIL COFFEE
HIGHLAND PARK BOWL
ROSTY
HIPPO
LITTLE CAVE
BASKIN ROBBINS
KINSHIP YOGA
LA PALAPA
AUTO ZONE
LA MONARCA BAKERY
HIGHLAND PARK FLORIST
THE BEARDED BEAGLE
IRIS BARBERSHOP
QUICK’R PRINT’R
AFTERS ICE CREAMSONOMAMA
MR HOLMES BAKEHOUSE
TINFOIL: LIQUOR & GROCERY
KITCHEN MOUSE
MOUNT ANALOG
DOWNTOWN LOS ANGELES
gold linehighland park
5526 N FIGUEROA & 5532 N FIGUEROA
n figueroa street
n figueroa street
HIGHLAND PARK WINE
PACIFIC UNION CHOPS MEAT
CAFE BIRDIE
CHECKER HALL
BLIND BARBEROTOÑO
KINDNESS AND MISCHIEF COFFEE
REDCAR DEVELOPMENT
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“A walk down Highland Park’s Figueroa Street on a sunny Sunday afternoon reveals the Northeast Los Angeles neighborhood’s glorious mix: Mid-century modern furnishings spill out the front doors of antique shops; elote vendors sit at curbs across from record stores, hair salons, and pour-over coffee shops; groups of friends linger over brunch cocktails.”
-Vogue, May 2017
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Highland Park offers one of Los Angeles’ most attractive collection of authentic storefronts and trendy destination retailers. The Figueroa corridor and connecting York Boulevard reveals signs of increasing gentrification while celebrating storied institutions. A number of new and exciting retail and restaurant hotspots have cropped up in Highland Park in recent months, including:
TRENDY NEW ADDITIONS HISTORIC MAINSTAYS
Mr. Holmes Bakehouse El Huarache Azteca
Tinfoil Liquor Galco's Soda Pop Stop
Mount Analog La Fuente Restaurant
Kitchen Mouse Divino Salvador
Sonomama Las Cazuelas Restaurant
Afters Ice Cream Fashion 21
The Blind Barber Highland Park Theater
Otoño
Pop Physique
The Juicy Leaf
ETA
Highland Park Bowl
Café Birdie
The Hermosillo
Sonny’s Hideaway
Hi Hat
Kindness & Mischief
Civil Coffee
Good Girl Dinette
Highland Park has just as many contemporary landmarks as it
does ones that pre-date the neighborhood’s distinction
as one of LA’s hippest.”– TimeOut Los Angeles
Los Angeles is a superior market driven by population growth, a powerful economy and a diverse employment base. The region’s strong economic environment, characterized by the increasingly low unemployment rate of 4.9% and the current 3.2% annual wage growth, has experienced a steady upward trend since the recession, indicating a sound investment climate for years to come which bodes well for all asset classes.
In Highland Park, the neighborhood’s recent renaissance has caused both home values and rents to appreciate dramatically, illustrating the desirability to live and spend time in the area. This upward value trajectory further supports the future performance of well-tenanted and well-maintained properties in Highland Park.
Market Overviewth e gre a te r l o s a n ge l e s re n a i ss a n c e
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A Transit Oasish i gh l a n d pa rk e n j o ys q u i c k a c c e s s to th e re s t o f th e gre a te r l o s a n ge l e s a re a
Whether by car or high-speed rail, Highland Park connects directly to LA Metro’s Gold Line. The Properties in this collection sit within two blocks of the Highland Park Station.
METRO CENTER
UNION SQUARE
HIGHLAND PARK
5526-5532FIGUEROA
27
2829
30
M
PalmsPalms
WattsWatts
ResedaReseda
LennoxLennox
EncinoEncino
VeniceVenice
RivieraRiviera
La FresaLa Fresa
FlorenceFlorence
Van NuysVan Nuys
Je�ersonJe�erson
Je�ersonJe�erson
West HillsWest Hills
ChatsworthChatsworth
NorthridgeNorthridge
Sherman OaksSherman Oaks
La CrescentaLa Crescenta
Warner CenterWarner Center
West GlendaleWest Glendale
Playa del ReyPlaya del Rey
East La MiradaEast La Mirada
Ladera HeightsLadera Heights
North HollywoodNorth Hollywood
Hacienda HeightsHacienda Heights
Paci�c PalisadesPaci�c Palisades
West WhittierWest Whittier
VernonVernon
DuarteDuarte
ArtesiaArtesia
MaywoodMaywood
AltadenaAltadena
CommerceCommerce
La PalmaLa Palma
CalabasasCalabasas
San MarinoSan Marino
Baldwin ParkBaldwin Park
San FernandoSan Fernando
South El MonteSouth El Monte
Burbank
Norwalk
Gardena
Arcadia
El Monte
Alhambra
PasadenaGlendale
Lakewood
Whittier
La Habra
La Mirada
Inglewood
El Segundo
Montebello
West Covina
Santa Monica
Monterey Park
Beverly Hills
West Hollywood
P A C I F I C O C EA
N
118
134
10
10
5
5
405
210
110
101
Hippo
Sononoma
Rosty’sChecker Hall
Ontoño
Blind Barber
After Hours Ice Cream
Hippo
Sononoma
Rosty’sChecker Hall
Ontoño
Blind Barber
After Hours Ice CreamChops
Hippo
Sononoma
Rosty’sChecker Hall
Ontoño
Blind Barber
After Hours Ice CreamChops Hippo
Sononoma
Rosty’sChecker Hall
Ontoño
Blind Barber
After Hours Ice CreamChopsPacific Union
5526 N Figueroa
5532 N Figueroa
Nearby Attractions
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Regional Demographic Trends f a s t f a c ts a b o u t h i gh l a n d pa rk
“With plenty of mom ‘n pop shops, vinyl stores and judgement-free strangers, Highland Park might just be the coolest neighborhood in LA.”
– C I T I Z I N E
$90,000AVERAGE HOUSEHOLD INCOME
WITHIN 3-MILES
41% HOUSEHOLDS
WITH INCOME $75,000+
15%PROJECTED HOUSEHOLD
INCOME GROWTH OVER THE NEXT 5 YEARS
$
Source: ESRI
As more amenities move into the area, Highland Park continues to attract an affluent new demographic, seeking to take advantage of the neighborhood’s unrivaled location, authentic charm and access to sought-after retail and restaurants. The neighborhood’s demographic trend therefore supports continued rent appreciation both for retail and office tenants.
Regional Demographic Trends a n e w, a f f l u e n t ge n e ra ti o n o f re n te rs
1-Mile Radius 2-Mile Radius 3-Mile Radius
po pu l a ti o n
2018 Population 44,286 129,911 266,932
2023 Population (Projected) 45,141 132,170 272,202
Annual Population Growth 2018-2023 0.38% 0.35% 0.39%
Median Age 33.8 35.9 36.6
Household Size 3.30 3.20 3.15
a v e ra ge h o u s e h o l d i n c o m e
2018 Household Income $70,905 $84,622 $90,377
2023 Household Income (Projected) $84,588 $101,183 $107,848
Highland Park Atwater Village/Silver Lake Echo Park LA Metro
SINGLE FAMILY HOME PRICE APPRECIATION
40.00%
30.00%
20.00%
10.00%
0.00%
-10.00%
-20.00%
-30.00%
Highland Park Atwater Village/Silver Lake Echo Park LA Metro
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-11.60%
0.88%
5.75%
6.91%11.21%
13.93%17.28%
27.26%30.50%
27.54%
11.10%
4.39% 4.47%
16.44%
14.48% 13.86%11.94%
8.90%
0.31%
-18.97%
-5.99%
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Market Trendss i n gl e-f a m i l y h o m e a ppre c i a ti o n d e m o n s tra te s i n c re a s i n g ge n tri f i c a ti o n
SINGLE FAMILY HOME PRICES
$1,000,000$900,000$800,000$700,000$600,000$500,000$400,000$300,000$200,000$100,000
$0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Often an indication of gentrification and revitalization, the single-family home market in Highland Park paints a compelling argument in favor of rapidly appreciating real estate values.
Single-family home prices in Highland Park have begun exceeding those seen throughout the Greater LA Metro for the first time in history, averaging $701,000.
Market Trends
Single-family home prices in Highland Park have appreciated nearly 9% over 2016, rapidly outpacing greater Los Angeles at 4.7%. In fact, home appreciation in Highland Park nearly doubles that of Echo Park, and outpaces Silver Lake as well, neighborhoods that have undergone a similar revitalization and gentrification in recent years.
Highland Park
s i n gl e-f a m i l y h o m e a ppre c i a ti o n d e m o n s tra te s i n c re a s i n g ge n tri f i c a ti o n
28 29
>>
Development Map 5900 N FIGUEROA
TINFOIL: LIQUOR & GROCERY
KITCHEN MOUSE
MOUNT ANALOG
MR HOLMES BAKEHOUSE
figueroa & ave 50“FIG AND FIFTY”
29 SINGLE FAMILY HOMES
5101-5123 e echo
24 SINGLE FAMILY RESIDENCES
5711 N FIGUEROAAFTERS ICE CREAM
SONOMAMA6040 N figueroa
43,000 sf mixed-used campus
703 bridewell9 SMALL LOT HOMES
6845 N FIGUEROA
8 UNIT SMALL LOT SUBDIVISON
1414-1450 eaton
4 SINGLE FAMILY RESIDENCES
1118-1128 n ave 56
20 SINGLE FAMILY HOMES
4201-4207 n figueroa
16,000 SF MIXED-USE PROPERTY
3836 n figueroa
100 CONDOMINIUMS
Highland Park Develoment Map
5526 & 5532 n figueroa
PROPERTIES IN OFFERING MEMORANDUM
5015-5023 n figueroaREDCAR DEVELOPMENT
20,000 SF CREATIVE OFFICE & RETAIL
CONVERSION
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Commercial Spaceh i gh l a n d pa rk’s s k yro c k e ti n g a n n u a l re n ta l ra te s
As supported by the host of new amenities moving in, recent retail and office rental rates along Highland Park’s Figueroa Street and York Boulevard have appreciated to begin competing with those seen along similar neighborhood main streets.
Newly signed retail leases are commanding strong rents upwards of $45.00 PSF NNN annually, helping to push the neighborhood average up to $38.20 PSF NNN. Upcoming renovated office product is being marketed between $42.00-$48.00 PSF with very little market supply.
In nearby Silver Lake and Echo Park, two neighborhoods that have previously undergone a similar gentrification to what Highland Park is experiencing now, luxury boutique retailers moving into the area, such as Le Labo, are paying annual rental rates of $78.00 PSF NNN, with an overall neighborhood average of $45.34 over 2017-2018.
$45 PSF NNN AVERAGE RETAIL
AND OFFICE RENTS AMONG NEWEST SIGNED
20+ NEW RETAIL TENANTS THAT HAVE OPENED IN HIGHLAND
PARK SINCE 2013
Valuation Summary
Unit Size (SF) Potential Income (NNN)
Suite 5534 649 $2,433/month - $4.00 NNN
Suite 5538 1,060 $3,710/month - $3.50 NNN
Suite 200 3,448 $10,344/month - $3.00 NNN
Suite 220 714 $2,677/month - $3.75 NNN
Suite 230 434 $1,736/month - $4.00 NNN
5526 N Figueroa 2,464 $10,472/month NNN
Total 8,769 SF $31,372/month NNN
$376,464 annual income
po te n ti a l i n c o m e
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The offering of 5526-5532 N. Figueroa in Highland Park is being conducted exclusively by Jones Lang LaSalle (“JLL”). All questions and inquiries should be directed to JLL representatives listed in this Offering Memo-randum. Prospective investors are strongly discouraged from directly contacting Seller without the express written consent of JLL. Seller and JLL reserve the right to alter the Transaction Guidelines in their sole discretion. JLL will be available to assist prospective investors to arrange on-site inspections and to answer any questions related to information contained in this Offering Memorandum. The prospective investor will be selected by Ownership in its sole and absolute discretion based on a variety of factors including, but not limited to:
• Purchase price;• The source of capital, both equity and debt, for the transaction;• The amount of earnest money deposit;• Detail on the closing expenses to be borne by either buyer or seller
(i.e. escrow, title insurance, transfer taxes, etc.); and• A detailed schedule of the due diligence and requisite approval process.
DISCLAIMER: Materials contained in this Investment Offering Memorandum are confidential, furnished solely for the purpose of considering the purchase of The Fig Collection @ Highland Park (the “Property”) located in Los Angeles, California; described herein and are not to be used for any other purpose or to be made available to any other person without the express written consent of Jones Lang LaSalle (“JLL”). The material is based, in part, upon information supplied by Seller and, in part, upon information obtained by JLL from sources they deem to be reliable. Summaries contained herein of any legal documents are not intended to be comprehensive statements of the terms of such documents, but rather are outlines of some of the principal provisions contained therein. No warranty or representation, expressed or implied, is made by Seller, JLL or any of their related entities as to the accuracy or completeness of the information contained herein. Prospective investors should make their own investigations, projections and conclusions. Interest-ed buyers should be aware that the Seller is selling the Property in “AS IS” CONDITION WITH ALL FAULTS, WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE. It is expected that prospective investors will conduct their own independent due diligence concerning the Property, including such engi-neering and environmental inspections as they deem necessary to determine the condition of the Property and the existence or absence of any potentially hazardous materials used in the construction or maintenance of the Property. No representations, expressed or implied, are made as to the foregoing matters by Seller, JLL or any of their officers, employees, affiliates and/or agent. Information contained in this Investment Offering Memorandum is further governed by the Confidentiality Agreement.
Jones Lang LaSalle Americas, Inc., License # 19262 • California license # 01223413 • Copyright © Jones Lang Lasalle IP, Inc. 2018Aerial Photos: Next Image 3DPublication Design: J. Hallquist; Spire Creative
Transaction Guidelines
Dana S. Brody Senior Vice President T +1 213 239 6210 [email protected] CA Lic. # 01429001
Nicole Mihalka Managing Director T +1 213 239 6076 [email protected] CA Lic. # 01322414
515 South Flower StreetSuite 1300Los Angeles, CA 90071
CONTACT INFORMATION