laguna village · 2017. 9. 22. · laguna village laguna beach, ca act id y0100191 non-endorsement...

Presented to: Brad Lawrence Kuish

LAGUNA VILLAGE

Market Positioning and Pricing Analysis

777-790 S. Coast Hwy, Laguna Beach, CA

LAGUNA VILLAGELaguna Beach, CAACT ID Y0100191

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017 Marcus & Millichap. All rights reserved.

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01 Property Overview Regional Map Local Map

Aerial Photo

FINANCIAL ANALYSIS 02 Rent Roll Summary

Rent Roll Detail

Rent Roll Summary Commercial

Operating Statement

Notes

Current Pricing

User Defined Pricing

Pricing Detail

Proposal Price

MARKET COMPARABLES 03 Comparables

Rent Comparables

MARKET OVERVIEW 04 Market Analysis

Demographic Analysis

LAGUNA VILLAGE 777-790 South Coast Highway


4

INVESTMENT

OVERVIEW

PROPERTY OVERVIEW


PROPERTY OVERVIEW

The city of Laguna Beach, often referred to as the California Riviera, is known worldwide as a unique beach community and artist colony. Replete with resort style

accommodations, gourmet restaurants, downtown cafes, vibrant and eclectic retail shopping, world class art and sculpture galleries, and some of the most spectacular

beaches and oceans views in all of California.

The subject property, Laguna Village, is a unique mixed-use retail and multifamily property located on the ocean side of South Coast Highway within the Village of Laguna

Beach. It is only steps away from the sandy beaches, markets, restaurants, and all the amenities of downtown Laguna.

The property is comprised of a retail store with frontage on Coast Highway, and two stylishly furnished two-bedroom apartment units with decks, oceans views, with direct

access to the village and the beautiful beaches on the coastline. The retail portion of the property is fully leased to Otana Salon, who has operated their salon business in the

property for many years, catering to the local community as well as to tourists who frequent the area. The two apartment units are beautifully furnished two-bedroom units

that can sleep 4-6 people, and are in high demand for both year round rentals, or short term vacation rentals throughout the entire year. The demand for the apartments is

such that there is a continuous waiting list of tenants that desire to rent these two beach adjacent apartments with access to all of the amenities of Laguna Beach's

Downtown Village.

PROPERTY OVERVIEW

§ Spectacular Beach Adjacent Location in Laguna's Downtown Village Area

§ Ocean Views and Beach Access for Tenants

§ Walking Distance to Gourmet Restaurants, Cafe's, Art Galleries, and Retail Shopping

§ Consistent High Rental Demand with Waiting List for Tenants

5


6

REGIONAL MAP


7

AERIAL PHOTO


8


9

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


10

RENT ROLL DETAIL

RENT ROLL SUMMARY

FINANCIAL ANALYSIS


OPERATING STATEMENT

11

FINANCIAL ANALYSIS


12

CURRENT PRICING

FINANCIAL ANALYSIS


PRICING DETAIL

13


14

MARKET

COMPARABLES

8


SALES COMPARABLES MAP

15

LAGUNA VILLAGE(SUBJECT)

662-664 South Coast Highway

618 South Coast Highway

397 North Coast Highway



SALES COMPARABLES

1

2

3

4

5

16

777 S CoastHwy

662-664 SCoast Hwy,

618 S CoastHwy

397 N CoastHwy

357 S CoastHwy

1915 SCoast Hwy

0

1

1

2

2

3

3

4

4

5

5

Avg. 3.68%

Average Cap Rate

PROPERTY NAME


COMPARABLES

777 S CoastHwy

662-664 SCoast Hwy,

618 S CoastHwy

397 N CoastHwy

357 S CoastHwy

1915 SCoast Hwy

$0.00

$300.00

$600.00

$900.00

$1,200.00

$1,500.00

$1,800.00

$2,100.00

$2,400.00

$2,700.00

$3,000.00

Avg. $760.14

Average Price Per Square Foot

SALES COMPARABLES

SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


17

SALES COMPARABLES

Tenants Type

Offering Price $3,300,000 2 2 Bdr 1 Bath

Price/SF $2,149.84 1 Retail

CAP Rate 4.05%

Year Built 1929

Total Apartment Units 2

Total Commercial Suites 1

777 S COAST HWY777 S COAST HWY, LAGUNA BEACH, CA, 92651

662-664 S COAST HWY,662-664 S COAST HWY,, LAGUNA BEACH, CA, 92651

Tenants Type

Close Of Escrow 6/28/2016 2 Retail

Sales Price $3,900,000 3 0 Bdr 1 Bath

Price/SF $537.56 3 1 Bdr 1 Bath

CAP Rate 3.22% 3 2 Bdr 1 Bath

Year Built 1931 1 3 Bdr 2 Bath

Total Apartment Units

10

Total Commercial Suites

2

Key Tenants

Mystic Arts

1


Tenants Type


Sales Price $3,350,000 3 1 Bdr 1 Bath

Price/SF $919.57 1 2 Bdr 2 Bath

CAP Rate 3.37%

Year Built 1966

Total Apartment Units 4


2

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


18

SALES COMPARABLES

397 N COAST HWY397 N COAST HWY, LAGUNA BEACH, CA, 92651

Tenants Type


Sales Price $3,000,000

Price/SF $572.96

CAP Rate 3.90%

Year Built 1932


1

3


Tenants Type



Price/SF $1,187.50

CAP Rate 3.77%

Year Built 1949


1

Key Tenants

Ning Zhou Gallery

4


Tenants Type



Price/SF $583.10

CAP Rate 4.15%

Year Built 1944


Key Tenants

Maro Resturant

5

8


RENT COMPARABLES MAP

LAGUNA VILLAGE(SUBJECT)

The Retreat in Laguna

Pacific Edge Hotel

Laguna Riviera Hotel

258 Saint Anns Dr

711 Gaviota Dr

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

1

2

3

5

19

PROPERTY NAME


RENT COMPARABLES

20

AVERAGE OCCUPANCY

777 S CoastHwy

The Retreatin Laguna

PacificEdge Hotel

LagunaRivieraHotel

258 SaintAnns Dr

711Gaviota Dr

0

10

19

29

38

48

58

67

77

86

96 Avg. 93.00%

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

777 S COAST HWY

777 S COAST HWY, LAGUNA BEACH, CA, 92651

777 S COAST HWY


777 S COAST HWY


21

Type Tenant Avg. SF Avg. Monthly Rent Rent/SF

2 Bdr 1 Bath 2 $7,700 $14.32

Total/Avg. 2

Retail 1 460 $2,050 $53.48


THE RETREAT IN LAGUNA 729 GAVIOTA DRIVE, LAGUNA BEACH, CA, 92651

OCCUPANCY: 95% | YEAR BUILT: 1932

1

Unit Type Units SF Rent Rent/SF

Studio 1 Bath 2 400 $9,136 $22.84

1 Bdr 1 Bath 6 550 $10,697 $19.45

Total/Avg. 8 513 $10,307 $20.30

NOTESLocated adjacent to the subject property on Gaviota Drive. Some of the units have direct ocean views, others units have partial ocean views.

PACIFIC EDGE HOTEL647 S COAST HWY, LAGUNA BEACH, CA, 92651

2

Unit Type Units SF Rent Rent/SF

1 Bdr 1 Bath 320 $8,393-$9,576 $28.08

2 Bdr 1 Bath 760 $9,844-$12,768 $14.88

Total/Avg.

OCCUPANCY: 95% | YEAR BUILT: 1964

NOTESThe Pacific Edge Hotel is located directly north of the subject property and is offers rooms with similar views and similar beach access.

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

LAGUNA RIVIERA HOTEL






22

LAGUNA RIVIERA HOTEL825 S COAST HWY, LAGUNA BEACH, CA, 92651


1 Bdr 1 Bath 440 $8,465 $19.24

NOTESThe Laguna Rivera Hotel is located just south of the subject property. This hotel property is in need of renovation and upgrades, however the property maintains high occupancy due to its desirable location.

3

258 SAINT ANNS DR258 SAINT ANNS DR, LAGUNA BEACH, CA, 92651


2 Bdr 1 Bath 1 620 $9,984 $16.11

NOTESThis property is located half a block inland of Coast Hwy on St Ann's Street. The property still offers tenants a short walk to the ocean, and access to the amenities of the Laguna Beach Village.

4

711 GAVIOTA DR711 GAVIOTA DR, LAGUNA BEACH, CA, 92651


1 Bdr 1 Bath 2 500 $7,899 $15.80

NOTESThis property is located north of the subject property adjacent to Cleo Street. The units are set back a bit from the street and as a result have a more distant view.

5


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MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2016 Experian

Created on April 2017

POPULATION 1 Miles 3 Miles 5 Miles§ 2021 Projection

Total Population 8,213 23,744 118,423

§ 2016 Estimate


§ 2010 Census


§ 2000 Census


§ Daytime Population

2016 Estimate 10,533 24,895 100,493

HOUSEHOLDS 1 Miles 3 Miles 5 Miles§ 2021 Projection

Total Households 4,227 11,022 48,413

§ 2016 Estimate


Average (Mean) Household Size 1.93 2.11 2.43

§ 2010 Census


§ 2000 Census


Growth 2015-2020 -0.68% 2.87% 3.23%

HOUSING UNITS 1 Miles 3 Miles 5 Miles§ Occupied Units

2021 Projection 4,227 11,022 48,413

2016 Estimate 4,817 11,925 48,766

Owner Occupied 1,971 6,373 29,732

Renter Occupied 2,286 4,342 17,167

Vacant 561 1,210 1,867

§ Persons In Units

2016 Estimate Total Occupied Units 4,256 10,715 46,899

1 Person Units 43.16% 35.65% 26.88%

2 Person Units 35.53% 37.84% 35.74%

3 Person Units 11.11% 12.97% 15.81%

4 Person Units 6.84% 9.31% 14.31%

5 Person Units 2.47% 3.03% 5.14%

6+ Person Units 0.92% 1.19% 2.12%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles§ 2016 Estimate

$200,000 or More 21.51% 26.22% 19.19%

$150,000 - $199,000 7.50% 9.35% 11.38%

$100,000 - $149,000 15.33% 15.66% 21.02%

$75,000 - $99,999 11.15% 11.54% 13.32%

$50,000 - $74,999 14.44% 12.49% 14.04%

$35,000 - $49,999 7.61% 7.04% 7.44%

$25,000 - $34,999 6.33% 5.16% 5.30%

$15,000 - $24,999 7.64% 5.03% 3.75%

Under $15,000 8.48% 7.51% 4.52%

Average Household Income $152,088 $174,985 $152,122

Median Household Income $86,629 $103,005 $103,066

Per Capita Income $78,514 $82,228 $62,382

POPULATION PROFILE 1 Miles 3 Miles 5 Miles§ Population By Age

2016 Estimate Total Population 8,257 22,828 114,611

Under 20 15.69% 17.67% 23.21%

20 to 34 Years 14.11% 12.40% 16.35%

35 to 39 Years 6.01% 5.20% 6.28%

40 to 49 Years 15.83% 15.61% 16.50%

50 to 64 Years 28.24% 28.27% 23.43%

Age 65+ 20.11% 20.84% 14.22%

Median Age 49.07 49.50 42.69

§ Population 25+ by Education Level

2016 Estimate Population Age 25+ 6,687 17,984 82,279

Elementary (0-8) 0.30% 0.30% 0.71%

Some High School (9-11) 1.81% 1.85% 1.76%

High School Graduate (12) 10.85% 8.46% 10.61%

Some College (13-15) 14.24% 16.87% 19.12%

Associate Degree Only 7.71% 6.92% 8.56%

Bachelors Degree Only 37.11% 35.87% 36.88%

Graduate Degree 27.91% 29.57% 21.91%

§ Population by Gender

2016 Estimate Total Population 8,257 22,828 114,611

Male Population 50.64% 50.41% 48.55%

Female Population 49.36% 49.59% 51.45%

24

IncomeIn 2016, the median household income for your selected geography is $86,629, compare this to the US average which is currently $54,505. The median household income for your area has changed by 32.87% since 2000. It is estimated that the median household income in your area will be $107,400 five years from now, which represents a change of 23.98% from the current year. The current year per capita income in your area is $78,514, compare this to the US average, which is $29,962. The current year average household income in your area is $152,088, compare this to the US average which is $78,425.

PopulationIn 2016, the population in your selected geography is 8,257. The population has changed by 2.10% since 2000. It is estimated that the population in your area will be 8,213.00 five years from now, which represents a change of -0.53% from the current year. The current population is 50.64% male and 49.36% female. The median age of the population in your area is 49.07, compare this to the US average which is 37.68. The population density in your area is 2,628.04 people per square mile.

HouseholdsThere are currently 4,256 households in your selected geography. The number of households has changed by 1.89% since 2000. It is estimated that the number of households in your area will be 4,227 five years from now, which represents a change of -0.68% from the current year. The average household size in your area is 1.93 persons.

EmploymentIn 2016, there are 6,921 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 80.44% of employees are employed in white-collar occupations in this geography, and 19.93% are employed in blue-collar occupations. In 2016, unemployment in this area is 4.23%. In 2000, the average time traveled to work was 27.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows: 90.45% White, 0.75% Black, 0.07% Native American and 3.20% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 7.70% of the current year population in your selected area. Compare this to the US average of 17.65%.

PROPERTY NAME

MARKETING TEAM


HousingThe median housing value in your area was $1,000,000 in 2016, compare this to the US average of $187,181. In 2000, there were 1,986 owner occupied housing units in your area and there were 2,191 renter occupied housing units in your area. The median rent at the time was $966.

Source: © 2016 Experian

DEMOGRAPHICS

25

www.MarcusMillichap.com

Shane Ryan McConnell

Vice President Investments

Newport Beach OfficeTel: (949) 419-3258Fax: (949) 419-3210

[email protected]

License: CA 01177592

P R E S E N T E D B Y

laguna village · 2017. 9. 22. · laguna village laguna beach, ca act id y0100191 non-endorsement...

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