for sale: westside in-line retail investment · 1401 westwood boulevard // los angeles, ca 90024 //...

for sale: westside in-line retail investment

October 11, 2018

Presented By:

Martin [email protected]

1401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com

SUMMARY SECTION 3

PROPERTY INFORMATION 6

LOCATION INFORMATION 13

DEMOGRAPHICS 18

SALES COMPARABLES 20

ADDITIONAL INFORMATION 27

ADVISOR BIOS 30

table of contents

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Any party contemplating or under contract or in escrow for a transaction is urged to verifyall information and to conduct their own inspections and investigations including throughappropriate third party independent professionals selected by such party. All financial datashould be verified by the party including by obtaining and reading applicable documentsand reports and consulting appropriate independent professionals. Method Commercialmakes no warranties and/or representations regarding the veracity, completeness, orrelevance of any financial data or assumptions. Method Commercial does not serve as afinancial advisor to any party regarding any proposed transaction. All data andassumptions regarding financial performance, including that used for financial modelingpurposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents canbe established at or increased to that level. Parties must evaluate any applicablecontractual and governmental limitations as well as market conditions,vacancy factors andother issues in order to determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions shouldbe discussed by the party with a certified public accountant or tax attorney. Title questionsshould be discussed by the party with a title officer or attorney. Questions regarding thecondition of the property and whether the property complies with applicable governmentalrequirements should be discussed by the party with appropriate engineers, architects,contractors, other consultants and governmental agencies. All properties and services aremarketed by Method Commercial in compliance with all applicable fair housing and equalopportunity laws.

section 1

summarysection

section 1 / page 41401 Westwood Boulevard // Los Angeles, CA 90024 // 323.477.2580 // methodcommercial.com

FOR SALE: WESTSIDE IN-LINERETAIL INVESTMENT

4539-4551 CENTINELA AVENUE,LOS ANGELES, CA 90066SALE PRICE: MINIMUM BID: $3,400,000

Opportunity to purchase stable in-line retailproperty with great parking and significant rentalrate upside. Immediate value-add potential whencombined with the contiguous sale of 4555Centinela Ave. Future development site, due tolarge combined lot and limited currentimprovement. The sparse commercial zoningcreates a strong barrier to entry, which in tandemwith the burgeoning Del Rey market provides astrategic advantage for investors.

• Well located to serve Westside retail demand

• Quickly gentrifying area with strong

demographics

• Combine with 4555 Centinela to control 70% of

the block

• Dedicated parking lot with 22 spaces

investment

Lot Size: 13,187 SF

Building Size: 5,310 SF

Zoning: C2-1

Year Built: 1958

APN: 4223-031-010 and 011

rent roll

section 1 / page 51401 westwood boulevard // suite 260 // los angeles, ca 90024 // 323.477.2580 // methodcommercial.com

TENANTNAME

UNITNUMBER

UNITSIZE (SF)

Exp.DATE

ANNUALRENT

% OFGLA

PRICEPER SF/YR

Taqueria Sanchez 4539 1,247 $61,200 23.48 $49.08

Sakura 4543/4545 2,231 $54,000 42.02 $24.20

Luna Hair 4549 761 $12,600 14.33 $16.56

Plank 47 Pizza 4551 1,071 $13,200 20.17 $12.32

Totals/Averages 5,310 $141,000 $26.55

Martin

Text Box

Lease Summaries: (provided without representation or warranty): Taqueria: new five year gross lease with 3% annual increases, and one (3) year option to renew at FMV. Sakura: First Right of Refusal to Purchase, no annual increases, one (6) year option to renew per negotiation. Tenant pays all utilities except water where they pay a portion of the water bill (details in lease). Tenant pays 20% of the real estate tax increase. Tenant pays pro rata share of common area expenses. Luna Hair: no annual increases, tenant to pay all utilities except water, tenant pays 33% of the increased real estate taxes. Tenant has one (3) year option to renew per negotiation. Tenant pays pro rata share of common area expenses. Plank 47: no annual increases, one (10) year option to renew per negotiation, tenant to pay all utilities except water, no obligation for real estate taxes.

Martin

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12/31/2020

Martin

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04/1/2023

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08/31/2023

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05/1/2026

section 2

propertyinformation


PROPERTY DESCRIPTIONThe property contains four units all of which are leased to the two most desired categories of retail: food andhealth & beauty. Three of the units are restaurants and one is a hair salon. Please see the rent roll for furtherdetails on lease terms. The property presents approximately 120 feet of Centinela frontage and whencombined with the neighboring property, 4555 Centinela Ave. (also for sale), the frontage is increased toapproximately seventy percent of the block.

The property is further improved with great parking from it's twentry-two dedicated spaces in the rear, flatlot, and ease of access for customers to the tenant spaces via a pedestrian walkway.

ZONINGC2-1Los Angeles Coastal Transportation CorridorUse Code: 1100 commercial storeNo Overlays or DistrictsNo TOCNo known methane, oil wells or active clean up sties per Geo Tracker

property description


aerial

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front of property


back of property


del rey area retailer map


limited retail zoning creates market advantage

section 3

locationinformation


regional map


The Property is located in a westside neighborhood called Del Rey. Onemile and one half to the west and south of the Property is Marina DelRey and Playa Vista. Downtown Culver City is under three miles to thenortheast. This location is walking distance to Culver City's hotWashington Boulevard retail corridor which includes many restaurants(see retailer map). The Property is well connected to these areasthrough the thoroughfares of Culver Blvd, Short Ave, Washington Blvdand Centinela Ave.

The most unique element of this location is that the Los Angeles zoningfor commercial property is constrained to only the three blocks fromShort Ave. to Culver Blvd. Besides the commercial properties in CulverCity on Washington Blvd., this commercial corridor presents theprimary opportunity for retail in the one mile radius. This area is easyto get around with a Bike Score of 84.

LOCATION OVERVIEW

location maps


north view from property


west view from property

section 4

demographics


* Demographic data derived from 2010 US Census

1 Mile 2 Miles 3 Miles

Total Population 38,272 127,702 258,893

Population Density 12,182 10,162 9,156

Median Age 36.2 36.9 37.4

Median Age (Male) 35.8 36.4 36.7

Median Age (Female) 36.4 37.4 38.2

Total Households 16,046 54,569 116,935

# of Persons Per HH 2.4 2.3 2.2

Average HH Income $78,803 $96,534 $97,716

Average House Value $705,482 $734,244 $720,317

demographics map

section 5

salescomparables


sale comps summary

SUBJECT PROPERTY PRICE BLDG SF PRICE/SF CAP # OF UNITS CLOSE

4539-4551 Centinela AvenueLos Angeles, CA90066

Minimum Bid: $3,400,000 5,310 SF - - 4 -

SALE COMPS PRICE BLDG SF PRICE/SF CAP # OF UNITS CLOSE

14346 Sepulveda BlvdCulver City, CA90230

$3,500,000 5,060 SF $691.70 - - On Market

24800 Centinela AveLos Angeles, CA90066

$5,000,000 6,007 SF $832.36 2.4% 6 On Market

312717 W Washington BlvdLos Angeles, CA90066

$17,500,000 16,128 SF $1,085.07 - 5 02/15/2018

411039 Washington BlvdCulver City, CA90232

$4,819,000 6,800 SF $708.68 - 1 07/10/2017

512906 Venice BlvdLos Angeles, CA90066

$1,350,000 1,848 SF $730.52 - 2 On Market

64480 Inglewood BlvdLos Angeles, CA90066

$970,217 1,377 SF $704.59 - 1 02/28/2018

711611-11615 Washington PlLos Angeles, CA90066

$1,950,000 3,060 SF $637.25 - - On Market

AVERAGES $5,012,745 5,754 SF $871.18 2.4% 3 -

Martin

Rectangle


4539-4551 Centinela Avenue | Los Angeles, CA 90066SUBJECT PROPERTY

1 4346 Sepulveda BlvdCulver City, CA 90230

2 4800 Centinela AveLos Angeles, CA 90066

3 12717 W Washington BlvdLos Angeles, CA 90066

4 11039 Washington BlvdCulver City, CA 90232

5 12906 Venice BlvdLos Angeles, CA 90066

6 4480 Inglewood BlvdLos Angeles, CA 90066

7 11611-11615 Washington PlLos Angeles, CA 90066

sale comps map


SUBJECT PROPERTY

4539-4551 Centinela Avenue | Los Angeles, CA 90066

Minimum Bid: $3,400,000Sale Price:

0.3 ACLot Size:

1958Year Built:

5,310 SFBuilding SF:

-Price PSF:

100.0%Occupancy:

Opportunity to purchase stable in-line retail property with great parkingand significant rental rate upside. Immediate value-add potential whencombined with the contiguous sale of 4555 Centinela Ave. Futuredevelopment site, due to large combined lot and limited currentimprovement. The sparse commercial zoning creates a strong barrier toentry, which in tandem with the burgeoning Del Rey market provides astrategic advantage for investors.

4346 Sepulveda Blvd | Culver City, CA 90230

$3,500,000Sale Price:

0.17 ACLot Size:

1946Year Built:


$691.70Price PSF:

1

Similar condition, corner location, slightly better parking. For sale as-is.

sale comps


4800 Centinela Ave | Los Angeles, CA 90066


0.2625573921028466 ACLot Size:

1986Year Built:


$832.36Price PSF:

2.36%CAP:

100.0%Occupancy:

2

"L" shaped strip retail center on a corner with standard parking.

12717 W Washington Blvd | Los Angeles, CA 90066


1.11 ACLot Size:

1945Year Built:


$1,085.07Price PSF:

02/15/2018Closed:

100.0%Occupancy:

3

Sold for land value to a developer at $365 per land foot. This comp islocated half in Culver City with similar zoning (CG) and half in LosAngeles with inferior zoning (R3). The property included a 99 Cent Onlystore and four small retail units plus a large parking lot.

sale comps


11039 Washington Blvd | Culver City, CA 90232


0.53 ACLot Size:

1931Year Built:


$708.68Price PSF:

07/10/2017Closed:

4

Automotive retail site with multiple offers for retail re-positioning butsold to neighbor to expand their business.

12906 Venice Blvd | Los Angeles, CA 90066


0.06 ACLot Size:

1936Year Built:


$730.52Price PSF:

5

Small area retail under contract at above the Property minimum bidprice. 12906 Venice is inferior in condition, parking and scale.

sale comps


4480 Inglewood Blvd | Los Angeles, CA 90066

$970,217Sale Price:

0.21 ACLot Size:

1949Year Built:


$704.59Price PSF:

02/28/2018Closed:

6

This sales comp like most of the others demonstrates the demand frominvestors for area property that can be repositioned. This comp hadinferior parking and location.

11611-11615 Washington Pl | Los Angeles, CA 90066


0.12 ACLot Size:

1956Year Built:


$637.25Price PSF:

7

Similar condition, parking, location and with a similar use of retail/residential. There are three retail units in the front and two residentialunits in the back.

sale comps

section 6

additionalinformation


sealed bid process

Martin

Text Box

This opportunity is offered via a "sealed bid process". The following are the guidelines for offers: 1. The property shall be sold "as-is", where is with all faults. 2. All prospective buyers will be provided copies of: the Preliminary Title Report, Lease Agreement, Phase 1 Environmental Report, Seller Provided Purchase and Sale Agreement, Sealed Bid Inspection Disclaimer and Sealed Bid Marketing Process. 3. The initial active marketing period shall be at least 30 days, or an alternate date determined by Seller. This time period is established to provide sufficient exposure of the property to the market AND allow all prospective buyers reasonable time to complete all necessary due diligence. 4. All offers are to be submitted sealed, on the Seller provided, non-binding Real Estate Purchase Contract and Escrow Instruction on or before 11:00am November 27th, 2018. Also, to be provided sealed to Seller at time of offer: Proof of Funds Documentation, Seller's Purchase & Sale Agreement, Sealed Bid Inspection Disclaimer and Buyer executed Sealed Bid Marketing Process. 5. All offers can be submitted with contingencies although it would be the Seller's preference to have offers that are submitted non-contingent, including being free from any inspection and financing contingencies. 6. All submitted sealed offers are to be reviewed by Listing Agent and Seller, and acceptance/rejection thereof shall be in their sole discretion. 7. Any extensions of escrow beyond the closing date stipulated in the Purchase Contract shall require a fully executed Amendment to Escrow as drafted by the Escrow Holder per Seller direction. 8. Seller shall have the sole discretion to modify terms of said marketing process as deemed appropriated, including but not limited to the right to accept or reject any and/or all bids received. No binding contract shall be made unless and until a formal document is executed by both Seller and Buyer. 9. No commissions shall be paid to any party acting as a Principal in this or any related transaction.


document vault

Martin

Text Box

The following property website: https://buildout.com/website/387051-sale will provide a digital copy of this package plus a document vault for the sealed bid provided documents and any other available due diligence material. The document vault can be found under the "documents" tab towards the upper middle of the webpage. Prior to initial access of the document vault you will be asked to confirm a confidentiality agreement. Please contact us if you have any questions.

section 7

advisor bios


T [email protected] #01369084

Managing DirectorMARTIN MCDERMOTT Professional Background

Martin McDermott is a co-founder and Managing Director of Method Commercial a new type of investment brokeragefirm focused on the sale of retail, office and multifamily. Built to bring institutional quality analysis and advisory toprivate and family investors in Los Angeles but with the personal dedication of a boutique firm. Method Commercialleverages technology and a collaborative environment so that the client most benefits from the experience of oursenior agents.

Previously, Mr. McDermott was a founding Principal in Avison Young Southern California which grew from fouremployees to over 150 before merging with Avison Young of Canada which took the size to over 2,300. Mr.McDermott ranked number one in the region for 2012 and remained one of the top investment agents during histenure.

Prior to Avison Young, Mr. McDermott focused on tenant representation, agency work and sales at the Grubb andEllis Company starting in 2002. While at Grubb and Ellis, Mr. McDermott ranked in the top ten in the years of2006-2011 and in particular he ranked #1 in 2009 and 2011. Preceding real estate, Mr. McDermott was a “dot com”entrepreneur co-founding two companies between 1998 and 2002 and an executive in global executive developmentfrom 1993 to 2000 first at the Ameritech Institute and later at the Ross School of Business at the University ofMichigan.

Memberships & AffiliationsMr. McDermott is a member and instructor with the Urban Land Institute, a Certified Commercial Investment Member(CCIM) and holds a California Real Estate Broker's license.

EducationA.B. in Diplomacy and World Affairs and an emphasis in International Environmental Policy from Occidental College.Executive education courses in Sales, Marketing, Strategy and Leadership at The Ross School of Business at theUniversity of Michigan.

agent expertise

For moreinformation or toschedule a tour...Martin [email protected]

ThankYou

for sale: westside in-line retail investment · 1401 westwood boulevard // los angeles, ca 90024 //...

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