s new hampshire ave · 2017-09-11 · located in up and coming koreatown • 36 parking spaces...

UNIQUE PARCEL SIZE AND OWNERSHIP OPPORTUNITY

625625S NEW HAMPSHIRE AVE

AFFILIATED BUSINESS DISCLOSURECBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENTYour receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMERThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

© 2020 CBRE, Inc. All Rights Reserved.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY................4

MARKET OVERVIEW .................... 6

SUBMARKET OVERVIEW ............ 9

PROPERTY INFORMATION ........ 11

SALES COMPARABLES .............. 12

MARKET TRENDS ........................ 14

3

CBRE has been retained on an

exclusive basis to present an

opportunity to acquire prime property

suitable for investment, development

or occupancy by an owner/user. The

property will be sold without any long

term leases in place and the YMCA will

vacate 30 - 90 days following close of

escrow.

The offering consists of two separate

parcels that will be sold together - a

two story office building consisting

of approximately 18,000 square feet

(per public record the building is

approximately 24,256 square feet

- buyer to verify all square footage

figures) located on approximately 9,790

square feet of land and an adjacent

parking lot consisting of approximately

8,427 square feet of land.

EXECUTIVE SUMMARY


4

INCOME OR OWNER-USER PROPERTY FOR THE UNIQUE INVESTOR

• Excellent opportunity to purchase an iconic multi-use asset in the heart of Koreatown.

• The YMCA will vacate the property 30 - 90 days following the close of escrow allowing a buyer to redevelop the property, reposition the property for a new lease, or occupy the property as an owner/user.

• Ability to escalate rents from the current submarket rates

LOCATED IN UP AND COMING KOREATOWN • 36 parking spaces on-site with great access to Wilshire

Boulevard

• Located at the intersection of Wilshire Boulevard and Vermont Avenue, two of the busier streets in the greater Downtown Los Angeles area.

HIGH DENSITY DEMOGRAPHICS• Over 1.2 million people in a 5-mile radius with an Average

Household Income exceeding $72,000

• Surrounded by thoroughfares and highly trafficked streets and within a 5-mile radius of over 700,000 employed individuals

HIGH VISIBILITY OWNERSHIP OPPORTUNITY• Situated on South New Hampshire, a few blocks from both

Wilshire Boulevard and Vermont Avenue

• Unique building and lot size with an opportunity to add significant value

OFFERING PRICE $6,995,000 ($288/SF or $388/SF)

APNs5502-026-0045502-026-013

BUILDING SIZE+/- 24,256 SF (Per Public Record)

+/- 18,000 (Per YMCA)

YEAR BUILT 1958

ZONINGBuilding: LAC2

Land: LAR5P

CURRENT OCCUPANCYThe YMCA will vacate the property

30 - 90 days following close of escrow.

PARCEL SIZE +/- 18,217 SF

PARKING 36 Spaces (1.5/1,000 or 2/1,000)

ASSET SUMMARY INVESTMENT HIGHLIGHTS

5

139,600

115,600

86,200

74,100

74,000

61,800

50,100

38,400

29,800

19,000

New York

Dallas

Houston

Los Angeles

Chicago

Miami

Atlanta

Philadelphia

Washington, DC

Boston

Source: California Employment Development Department February 2020

29% OF NATIONWIDE APPAREL COMPANIES

Source: Bureau of Labor Statistics, Q2 2019.

1

4

7

2

5

8

3

6

9

10

Long Beach has deepest shipping channel in North America

Source: CBRE Scoring Tech Talent 2019

PORTS OF LA/LONG BEACH HANDLES:

West coast cargo volume

share of the national port market

32% 73%

#4CITY WITH THE LARGEST JOB

GROWTH

UNEMPLOYMENT: 4.5% of labor force in February 2020

ECONOMIC OPPORTUNITIES

GDP/MANUFACTURING

FILM INDUSTRY: 131,600 jobs in LA County

Exceeds next 10 metro areas combined by 50,000

TOP 10 MARKET FOR TECH EMPLOYMENT

#3 TECH DEGREE COMPLETIONS

342,700 Manufacturing Jobs

Most apparel manufacturing establishments in the United States

PORTS OF LA &LONG BEACH 1,936 Los Angeles County

616 New York County

212 King’s County

206 Orange County

$1.0T Metro GDP

3RD Most patents in the U.S.

2ND Largest economy by GDP in the U.S.

GROWTH RANKS

(Of Top 10 Metro by Population in US)

TECH

TECHLOGISTICS TOURISM

TOP 3 PRIVATE SECTOR INDUSTRIES

MARKET OVERVIEW

6

POPULATION TRENDS

RESIDENTS COLLEGES & UNIVERSITIES

STUDENTS

10.25M 102

711,368Source: Esri, CBRE Research, 2019

Estimated by Census Tract, 2019

45,687 9,618

44,027 7,710

41,319 2,238

POPULATION TRENDS HIGHER EDUCATION

Less than 1,000

1,000 – 8,400

8,400 – 15,800

15,800 – 24,000

Greater than 24,000

POPULATION DENSITY PER SQ. MI.

White 48.6%African American 8.2%Asian 15.0%American Indian or Alaska Native 0.7%Pacific Islander 0.3%Other Race 22.4%Two+ Races 4.9%

7

LA has biggest BIKESHARE SYSTEM in the nation.

METRO

Blue Line

Red Line

Green Line

Gold Line

Purple Line

Expo Line

UNDER CONSTRUCTION/PROPOSED Regional Connector (2021)

Purple Line Section 1 (Western to La Cienega)(2023)

Purple Line Section 2 (La Cienega to Century City)(2025)

Purple Line Section 3 (Century City to Westwood)(2027)

Crenshaw/LAX Line (Exposition to LAX)(2020)

Gold Line Foothill Extension (Azusa to Montclair)(2025)

Green Line Extension (Redondo Beach to Torrance)(2027)

Los Angeles Streetcar (2020)

MAJOR PROJECTS / INITIATIVESCrenshaw/LAX Transit Project: 8.5 mile lightrail from Expo

to Green Line; connects to Automated People Mover once

completed in 2023

(project opens 2020)

Regional Connector Transit Project: 1.9 mile alignment from

Blue Line to Gold Line (project opens 2021)

Purple Line Extension Section 1: 3.9 mile heavy rail line

beginning at Wilshire/Western station extending west (project

opens 2023)

Purple Line Extension Section 2: 2.6 mile heavy rail line

continues Purple Line from Miracle Mile into Century City (project

opens 2025)

Purple Line Extension Section 3: 2.6 mile westward extension

from Century City/Constellation station to Westwood (project

opens 2027)

$120B invested in rail lines, bus networks, carpool lanes and transportation demand management over the next 40 YEARS.

The Crenshaw/LAX Line and LAX People Mover arriving in 2023 will SIGNIFICANTLY IMPROVE AIRPORT ACCESS

LA has the most publicly available ELECTRIC VEHICLE CHARGING STATIONS

TRANSPORTATIONRAIL LINES

Amtrak California

Metrolink Ventura

Metrolink San Bernardino

Metrolink Riverside

Metrolink O.C.

Metrolink Antelope Valley

Metrolink I.E.– O.C.

Metrolink 91 Freeway

8

WILSHIRE/VERMONT THE VERMONT 515 SHATTO PLACE

Koreatown is a neighborhood in Central Los Angeles, California, centered near Eighth Street and Irolo Street, west of MacArthur Park. The rectangular area covers about 150 blocks, spanning 10 streets and 15 avenues (east-west). Koreans began immigrating in larger numbers in the 1960s and found housing in the Mid-Wilshire area. Many opened businesses as they found rent and tolerance towards the growing Korean population. Many of the historic Art deco buildings with terra cotta facades have been preserved because the buildings remained economically viable for the new businesses. Today, Koreatown is quickly becoming one of LA’s most popular neighborhoods; David Chang, world-renowned chef and founder of the Momofuku Restaurant Group, has called it the “most exciting place to eat in America.”

Koreatown is the most-densely populated district by population in Los Angeles County, with 120,000 residents in 2.7 square miles. Despite the name evoking a traditional ethnic enclave, the community is complex and has an impact on areas outside the traditional boundaries. While the neighborhood culture has historically been oriented to the Korean immigrant population, Korean business owners are creating stronger ties to the Latino community in Koreatown. The community is highly diverse ethnically, with half the residents being Latino and a third being Asian. Two-thirds of the residents were born outside of the United States, as a high figure compared to the rest of the city.

This city of perpetual sunshine and good vibes has taken the word “sprawl” and transformed it into its biggest advantage. Because L.A.’s charms are not easily accessible, they’re discovered with an open mind, patience, and time spent in each of its many enclaves. From the ocean to the valleys, each neighborhood has its own distinct personality - with plenty of things to do. But shared in every corner of this city is that starry-eyed notion of starting fresh, and many of its neighborhoods have lived different lives over the decades. Only fitting for a city always gleaming with the promise of reinvention.

Los Angeles is one of the most substantial economic engines within the United States, with a diverse economy in a broad range of professional and cultural fields. Los Angeles is also famous as the home of Hollywood, a major center of the world entertainment industry. A global city, it has been ranked 1st in the Global Cities Index and 12th in the Global Economic Power Index. The Los Angeles combined statistical area also has a gross metropolitan product of $941 billion (as of 2018), making it the third-largest in the world, after the Tokyo and New York metropolitan areas. Los Angeles hosted the 1932 and 1984 Summer Olympics and will host the event for a third time in 2028.

LOS ANGELES OVERVIEW KOREATOWN OVERVIEW

424,500 SF MIXED USED – OFFICE,

RETAIL & APARTMENTS

500,000 SF MIXED USE – OFFICE,

RETAIL & APARTMENTS

18,100 SF OFFICE UNDER RENOVATION

9

DEMOGRAPHICSApproximately 1,282,403 people reside within a five-mile radius of

the Property. Within a five-mile radius of the Property, more than 34%

of residents have earned a bachelor’s degree of higher. The median

age is 35, exemplifying the young educated labor pool available.

More than 46% of household incomes within a five-mile radius of the

Property are $50,000 or greater, with an average household income

of over $72,414.

1 MILE 3 MILE 5 MILE

POPULATION

2019 Estimated Population 140,036 650,851 1,282,403

2024 Projected Population 146,852 682,461 1,331,992

2010 Census Population 130,393 605,521 1,202,070

Growth 2010-2019 0.77% 0.78% 0.70%

Growth 2019-2024 0.96% 0.95% 0.76%

2019 HOUSEHOLD INCOME

$75,000-$99,999 4,443 (8.2%) 21,693 (8.8%) 45,688 (9.6%)

$100,000-$149,999 3,636 (6.7%) 22,254 (9.1%) 50,111 (10.5%)

$150,000 and over 1,893 (3.5%) 20,490 (8.4%) 50,007 (10.5%)

TOTAL (ESTIMATED)

2019 Median HH Income $37,341 $40,254 $45,161

2019 Avg HH Income $50,787 $64,436 $72,414

2019 Households 54,159 245,275 475,439

2019 Avg Housing Value $745,116 $942,933 $899,946

2019 Avg Household Size 2.57 2.58 2.61

10

PROPERTY PROFILESOWNER INFORMATION PROPERTY CHARACTERISTICS

PRIMARY OWNER YOUNG MENS CHRISTIAN ASSN OF METROPOLITAN L A

YEAR BUILT 1958

MAIL ADDRESS 625 S NEW HAMPSHIRE AVE, LOS ANGELES CA 90005 SQUARE FEET 24,256 SF (per Public Record)18,000 SF (per YMCA)

SITE ADDRESS 625 S NEW HAMPSHIRE AVE, LOS ANGELES CA 90005 LOT SIZE 9,790 SF

ASSESSOR PARCEL NUMBER 5502-026-004 NUMBER OF UNITS 1

CENSUS TRACT 2121.01 NO OF STORIES 2

LOT NUMBER 4 PROPERTY TYPE Commercial Office

PAGE GRID 634-A2 USE CODE Office Bldg (General)

LEGAL DESCRIPTION Lot: 4 Block: 7 Abbreviated Description: LOT:4 BLK:7 COPENHAGEN TRACT S 5.8 FT EX OF ST OF LOT 4 AND EX OF ST LOT 5 AND N 17.1 FT EX OF ST OF LOT 6 BLK 7

ZONING LAC2

OWNER INFORMATION PROPERTY CHARACTERISTICS

PRIMARY OWNER YOUNG MENS CHRISTIAN ASSN OF METROPOLITAN L A SQUARE FEET Not Applicable

MAIL ADDRESS 625 S NEW HAMPSHIRE AVE, LOS ANGELES CA 90005 LOT SIZE 8,427 SF

SITE ADDRESS LOS ANGELES CA 90005 NUMBER OF UNITS 0

ASSESSOR PARCEL NUMBER 5502-026-013 NO OF STORIES 1

CENSUS TRACT 2121.01 GARAGE Currently striped for 36 spaces

LOT NUMBER 20 USE CODE Parking Lot

LEGAL DESCRIPTION Lot: 20 Block: 7 Abbreviated Description: LOT:20 BLK:7 COPENHAGEN TRACT N 13.1 FT EX OF ST OF LOT 20 AND EX OF ST LOT 21 BLK 7

ZONING LAR5P

PARCEL MAP 1ST FLOOR - FLOOR PLAN 2ND FLOOR - FLOOR PLAN

11

2700 W 3RD ST | MID-WILSHIRE

SALE PRICE: $2,650,000 LAND SIZE: 13,504 SF

SALE PRICE PER BLDG SF: $336.34/SF BLDG SIZE: 7,879 SF

SALE DATE: Sept 11, 2017 ZONING: C2 LA, R4 Parking

3923 W 6TH ST | MID-WILSHIRE



SALE DATE: March 14, 2017 ZONING: C2




SALE DATE: May 9, 2017 ZONING: LAC2

2416-2422 W 7TH ST | MID-WILSHIRE

SALE PRICE: $3, 215,000 LAND SIZE: 6,970 SF


SALE DATE: April 23, 2018 ZONING: C2

2801 E 6TH ST | MID-WILSHIRE



SALE DATE: Aug 20, 2018 ZONING: C2

Subject Property

SALES COMPARABLE OVERVIEW

12

Subject Property




SALE DATE: Jan 4, 2017 ZONING: C2

616 S WESTMORELAND | MID-WILSHIRE



SALE DATE: Nov 15, 2017 ZONING: C1-4

2501-2511 W 7TH ST | MID-WILSHIRE



SALE DATE: Unknown ZONING: LAC2

971 S HOOVER ST | MID-WILSHIRE



SALE DATE: Nov 22, 2016 ZONING: R3

3755 BEVERLY BLVD | MID-WILSHIRE



SALE DATE: April 18, 2017 ZONING:LAC2, LACM,TIER4, SNAP C

SALES COMPARABLE OVERVIEW

13

CONTENT IS KING - THE CHANGING LANDSCAPE

HOLLYWOOD

$15B2019 INVESTMENT IN ORIGINAL CONTENT

PLAYA VISTA


CULVER CITY


SANTA MONICA


TOP 5CONTENT CREATORS ARE LOCATED IN LA

$25BTOTAL 2019

INVESTMENT

OF LEASES SIGNED BY TECH TENANTS IN THE LAST 5 YEARS

LEASED BY APPLE AND AMAZON OVER THE LAST 2 YEARS

5M SF 930K SF

LA IS THE EPICENTER OF ORIGINAL CONTENT CREATION

14

RAPID GROWTH & EXPANSION OF CONTENT CREATORS

Netflix and Other Streaming Companies Fueling CRE in L.A.–Bisnow

New leases give Apple a large footprint in Los Angeles for content push–Apple Insider

Facebook closes on 260k sf at the Brickyard … the social media company will expand its current space fivefold–The Real Deal

Amazon Expands Footprint in Culver City, Takes Entire Office Space at Culver Steps Developments–The Hollywood Reporter

HBO Picks $350M Culver City Project for New HQ– Commercial Property

Executive

Amazon Doubles Entertainment Footprint in Los Angeles Culver Studios Project–Costar News

HBO moving headquarters to Culver City Ivy Station megaproject–LA Curbed

Netflix to dramatically expand. Footprint, Taking Lease on Entire New 13-story Building in Hollywood–Variety

Google will lease all of massive Westside Pavilion amid redevelopment–The Real Deal

Netflix Grabs More L.A. Real Estate Signing lease for 355,000 SF at Academy on Vine Site–Variety

Over the last five years, the entertainment industry’s annual budgets for new original content have increased by $30 billion.

1.2 M SF

1 M SF

800K SF

600K SF

400K SF

200K SF

0 SF

$15B

$6B$1B

$1B

$3B

$2B<$1B

1) Apple is believed to be in discussions for an additional 115,000 SF in Culver City 2) HBO to announce its move from Santa Monica to Culver City pending completion of 200,000 SF lease at Ivy Station3) YouTube TV was a dominant business line in Google’s Spruce Goose expansion in Playa Vista

2018 ORIGINAL CONTENT BUDGETFOOTPRINT IN 2012 FOOTPRINT IN 2018 IN THE MARKET

2019 ORIGINAL CONTENT BUDGET

Among the most aggressively growing office tenants on the Westside are the original content production companies and technology firms with a focus on creating content for the $2 trillion streaming and traditional TV/media industry.

15

MAJOR TENANTS ATTRACTING TOP TALENT

DOWNEY

BURBANK

NORWALK

GLENDALE

PASADENA

INGLEWOOD

GARDENA

COMPTON

WESTMONT

LAWNDALE

ALTADENA

ALHAMBRA

ROSEMEAD

HAWTHORNE

MONTEBELLO

BELLFLOWER

SOUTH GATE

PLAYA VISTA

CULVER CITY

WILLOWBROOK

PICO RIVERA

BELL GARDENS

SANTA MONICA

MARINA DEL REY

MONTEREY PARK

BEVERLY HILLS

MANHATTAN BEACH

HUNTINGTON PARK

ENCINO

RESEDA

VAN NUYS

HOLLYWOOD

HYDE PARK

EL SEGUNDO

SUN VALLEY

SHERMAN OAKS

DOWNTOWN LOS ANGELES

SANTA FE SPRINGS

WEST LOS ANGELES

LA CANADA FLINTRIDGE

§̈¦405

§̈¦5

§̈¦710

§̈¦605

§̈¦10

§̈¦110

§̈¦10

£¤101

1

60

16

JEFF PIONVice ChairmanLic. 00840278 +1 310 550 [email protected]

© 2020 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. All marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.

CONTACT:

MICHELLE ESQUIVELExecutive Vice PresidentLic. 01290582+1 310 550 [email protected]

DREW PIONAssociateLic. 02085229+1 310 550 [email protected]


s new hampshire ave · 2017-09-11 · located in up and coming koreatown • 36 parking spaces...

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