1143-45 11th street santa monica ca 90403 · the expo line is a light-rail line that runs between...

www.CONCORD-RE.com | [email protected] | 310.551.0660

449 South Beverly Drive, First Floor, Beverly Hills, CA 90212

OFFERING MEMORANDUM

HISTORIC REGENCY MODERNE NORTH OF WILSHIRE

1143-45 11th STREETSANTA MONICACA 90403

PRESENTEDBY

Eric von Bluecher

Investment Associate

BRE#01926201

310.900.9505direct

[email protected]

PROPERTY SUMMARYProperty Highlights

Property Details

Property Location

Aerial Photo

Parcel Orientation

Photography

FINANCIALSMills Act

Financial Overview w / Mills Act

Financial Overview

Rent Roll

LOCATION OVERVIEWMarket overviewExpo Line Map

COMPARABLESActive CompsSales Comps

Rent Comps

MARKETING PACKAGEOVERVIEW

1143-45 11th StreetSANTA MONICA, CA 90403

www.CONCORD-RE.com | [email protected] | 310.551.0660


Kenny Stevens

Senior Vice President

BRE#01090251

310.968.7005 cell

[email protected]

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

PROPERTY SUMMARY


PROPERTY SUMMARYPROPERTY HIGHLIGHTS

11 UNITS IN SANTA MONICA• 5.19% Market CAP with Mills Act / 4.15% Market CAP without Mills Act

• Fantastic north of Wilshire location. Walk to bars and restaurants

• Historic Landmarked Regency Moderne architectural styling

• Potential Mills Act candidate for significant lower tax basis & benefits for new owner

• Bright and tranquil courtyard common area with built-in BBQ and shaded patio

• Timeless, well laid out interior floor plans with hardwood and tile floors

• 3 storage units providing additional income, one storage unit collecting $275/month

• Vacant garage will collect up to $500/month

• New water line from street to building

• All new gas lines running from street to building along with new earthquake shut-off valves

• Some copper pipping throughout the building

• 3 new water heaters in the rear building

• Hardwood floors throughout

• Large 1 Bed / 1 Bath unit has large balcony


PROPERTY SUMMARYPROPERTY DETAILS

PROPERTY DETAILSUnits 11Major Intersection Wilshire Blvd & California AveMarket Santa MonicaAPN 4281-020-015Zoning Type SMR2*Building SF 5,040


PROPERTY DESCRIPTION1143-45 11th St, Enjoy beautiful architecture, cash flow and future upside with this ideally located multifamily investment. This stunning Historical Regency Moderne style building is located north of Wilshire in Santa Monica; which has been rated one of the highest rental markets in the nation. Shopping, restaurants, movie theaters, are within walking distance of the property. The property consists of two structures that surround a beautiful bright and tranquil courtyard common area with a built-in BBQ and shaded patio. The unit mix is comprised of (5) 1+1’s and (6) studios. One bedroom and studio units equate to less long term tenants common in Santa Monica rent controlled buildings. The interiors of the units are classic 1920s look and feel with tile and hardwood floors as well as tile counters, for easy and low cost turn-around for new tenants. Added benefit for the new owner would be to apply for the Mills Act to reduce your property tax as well as other incentives to further your return on investment.

PROPERTY SUMMARYPROPERTY LOCATION


PROPERTY SUMMARYPROPERTY AERIAL


Wilsh

ire B

lvd

PROPERTY SUMMARYPARCEL ORIENTATION


PROPERTY SUMMARYPROPERTY PHOTOS



FINANCIALS


FINANCIALS

MILLS ACTTHE CITY OF SANTA MONICA



Mills Act Benefits• Under the Mills Act, property owners enter into preservation contracts with the city. In

exchange for property tax relief, the contract requires the owner to commit to a

restoration and maintenance work plan, developed through an evaluation by an

architect. The original contract term is 10 years, automatically renewing indefinitely

• How Property Taxes are Reduced: Usually, property taxes are a set percentage of the

market value, or purchase price, of a property. When applying the Mills Act, the

county reassesses property taxes based on a property’s ability to produce rental

income..

• Based on the example the city of SM provided:

• Market Value: $5,250,000

• Net Annual Income: $152,000

• New Assessed Value: $152,000 / 13% = $1,169,230

• Projected property Tax: 1.25% of $5,250,000 = $65,625

• Projected Mills Act property tax: 1.25% of $1,169,230 = $14,615

• Total tax Savings: $51,010

• Mills Ac Property Taxes: $14,615

• ***Buyer to verify

• Properties that have been recently purchased with high property tax valuations will

benefit more than those that have not changed hands and are thus already taxed at

a low rate.

• The Mills Act Contract Program does not guarantee a reduction amount for any

property.

• Buyer to contact city and conduct further due diligence regarding Mills Act and the

historical nature of this offering.

FINANCIALS

MILLS ACTTHE CITY OF SANTA MONICA


Mills Act Benefits***We can not guarantee this will be accepted by the Mills Act. Buyer to contact city and conduct further due diligence regarding Mills Act and the historical nature of this offering.

FINANCIALSFINANCIAL OVERVIEW WITH MILLS ACT TAX BENEFITS

FINANCIALSFINANCIAL OVERVIEW


FINANCIALSRENT ROLL



LOCATION


LOCATIONLOCATION OVERVIEW

SANTA MONICA-VENICE, CALIFORNIA

One of the most desirable addresses for both living and working, Santa Monica offers a walkabledowntown, a blossoming public transportation system, and several notable tourist destinations.Known for its sunshine and beaches, Santa Monica prides itself as a national model for progressiveissues, including social services, quality of life for local residents, and environmental leadership.Median family income is $110,000 and average home prices are $1.1 million resulting in beautifulneighborhoods and incredible ROI for real estate investors.

This urban village has spectacular views of its vast white sand beaches from Palisades Park,exceptional shopping on Third Street Promenade, main Street and Montana Avenue, and theregion’s most renowned restaurant scene. Santa Monica stretches for about two miles along thecoast before joining up with Venice Beach.


A population of nearly 90,000 and a daytime workforce of about 80,000makes Santa Monica’s labor force participation rate among the highest inthe world and a substantial daily in-migration of employees. Majoremployers include UCLA Hospital, St. John’s Health Center, RANDCorporation, Universal Music Group, Activision and Santa Monica College.

Silicon Beach is the Westside region of the Los Angeles metropolitan areathat is home to over 500 tech startup companies. Major technologycompanies have opened offices in the region including Google, Yahoo!,YouTube, BuzzFeed, Facebook, AOL, Electronic Arts, EdgeCast Networks,and MySpace. The region is considered the second- or third-largest techhub in the world, according to various reports. This has had major impactson the type and availability of office space and on home prices in PlayaVista, Playa Del Rey, Westchester, Santa Monica, and Venice, as theseareas have become more desirable due to this influx. The effects arealso spilling over into Marina del Rey which is attracting tech firms.

The Expo Line is a light-rail line that runs between Downtown Los Angelesand Santa Monica. The line is named “Expo” after Exposition Boulevard,which it runs alongside for most of its route. It is one of the six lines in theMetro Rail system, and is operated by the Los Angeles CountyMetropolitan Transportation Authority (Metro).



1143-45 11th STREET

Santa Monica Pier

Montana AveWhole Foods

Peet’s Coffee

Aero Theatre

The Courtyard Kitchen

Kreation Organic Kafe

Blue Plate

YogaWorks

R+D Kitchen

Sushi Sho

Clare V

Lucy Activewear

Father’s Office

Art’s TableChristine Emerson Reed

Park

Wilshire BlvdWhole Foods

Sidecar Doughnuts & Coffee

Planet Smoothie

The Coffee Bean

Huckleberry Café

Belcampo RestaurantSanta Monica Seafood Market & Café

Healthy Spot

Dunkin' Donuts

Rustic Canyon

Memorial Park

Fairmont Miramar Hotel & Bungalows

Third Street Promenade

Hillstone

The Kabbalah Centre

Tender Greens

Banana Republic

Brookstone

Burke Williams

AMC Santa Monica 7

AMC Loews Broadway 4

Equinox

Nordstrom

Soul Cycle

Main StreetUrth Caffé

M Street Kitchen

Dogtown Coffee

YogaWorks

Hotchkiss Park

JINYA Ramen Bar

Brick + Mortar

The GalleyEdgemar Center for the Arts

Pacific Street Park

Stella Barra Pizzeria


Expo Line Adding Value to Santa Monica’s Premium Rental Market


1143-45 11TH St


COMPARABLES

1143-45 11th StreetSANTA MONICACA 90403

1143-45 11TH ST

1

2

3

4

5

8

COMPARABLESSALES COMPS


2608 3rd St

838 14th St

927 Ocean Ave

2315 2nd Street

852 11th St

2

1

3

4

5

SALES Comps

COMPARABLESSALES COMPS

1

3 927 Ocean Ave Santa Monica, CA 90403

838 14th St Santa Monica, CA 90403

2608 3rd St Santa Monica, CA 904051

2

3

SALE PRICE $2,730,000

COE 6/23/2017

TOTAL UNITS 3

BLDG S.F. 2,352

PRICE/S.F. $1,160.71

PRICE/UNIT $910,000

YEAR BUILT 1904

GRM 16.48

CAP 3.53%


COE 1/27/2017

TOTAL UNITS 16

BLDG S.F. 7,876

PRICE/S.F. $1,015.74

PRICE/UNIT $500,000

YEAR BUILT 1922


COE 3/21/2017

TOTAL UNITS 4

BLDG S.F. 2,929

PRICE/S.F. $921.82

PRICE/UNIT $675,000

YEAR BUILT 1941

GRM 22.17

CAP 2.62%

UNITS UNIT TYPE

6 Studio

5 1 Bed/1 Bath

LISTED FOR $5,250,000

TOTAL UNITS 11

BLDG S.F. 5,040 SF

PRICE/S.F. $1,042

PRICE/UNIT $477,273

YEAR BUILT 1938-1966

GRM 19.95

CAP 2.91%

1143-45 11th Street, Santa Monica, CA 90403

UNITS UNIT TYPE

3 1 Bed/1 Bath

3 3 Bed/1 Bath

UNITS UNIT TYPE

1 Studio

1 1 Bed/1 Bath

1 2 Bed/1 Bath

UNITS UNIT TYPE

14 Studio

2 1 Bed/1 Bath



COE 7/8/2016

TOTAL UNITS 6

BLDG S.F. 3,104

PRICE/S.F. $993.88

PRICE/UNIT $514,167

YEAR BUILT 1900

GRM 15.15

CAP 3.84%

2315 2nd Street, Santa Monica, CA 904054

UNITS UNIT TYPE

1 Studio

4 1 Bed/1 Bath

1 2 Bed/2 Bath

5 852 11th St Santa Monica, CA 90403


COE 4/8/2016

TOTAL UNITS 5

BLDG S.F. 3,380

PRICE/S.F. $832.84

PRICE/UNIT $563,000

YEAR BUILT 1949

GRM 21.03

CAP 2.77%

UNITS UNIT TYPE

2 Studio

2 1 Bed/1 Bath

1 2 Bed/2 Bath

Comments: Delivered vacant. No GRM / CAP

1

4

2

35

6

3

8

6

COMPARABLESRENT COMPS

RENT Comps

852 11th St. #A

2716 Montana Ave #B

923 16th St

1020 10th St #C

848 Euclid St #B

923 16th St

1

2

3

4


5

6

1143-45 11TH ST

COMPARABLESRENT COMPS

.

RENT $2,900UNIT TYPE StUdio

RENT $2,495UNIT TYPE 1 Bedroom/1Bath

RENT $2,150UNIT TYPE Studio

852 11th St #A , Santa Monica, CA 90403

1020 10th St #C, Santa Monica, CA 90403923 16th St, Santa Monica, CA 90403

2716 Montana Ave #B, Santa Monica, CA 90403


1

3

2

4


Comments: Hardwood floors, nice appliances and a stall

shower all accompany this lovely apartment. There is on street

parking

Comments: Updated unit features a completely remodeled

kitchen with stainless steel appliances, original dark hardwood

floors, large private patio, and natural lighting throughout. There

is a washer/dryer onsite and parking is street permitted.

Comments: newly remodeled Stylish and chic with wood

floors, Carella marble, stainless steel appliances and gas

fireplace. Beautiful details in kitchen and bath. No parking,

Comments: No parking, updated kitchen with new counter

tops/appliances/cabinets, refinished wood flooring, new paint

and recently updated bathroom.

RENT $2,995UNIT TYPE 1 Bedroom/1BathUNIT SIZE 620 SQFT

848 Euclid St #A , Santa Monica, CA 904032716 Montana Ave #B, Santa Monica, CA 90403

Comments: updated unit features a completely remodeled

kitchen with stainless steel appliances, original dark hardwood

floors, large private patio, and natural lighting throughout. There is a

washer/dryer onsite and parking is street permitted

Comments: 1 secure parking spot, laundry in unit. Upgraded

kitchen & bath, hardwood floors

923 16th St, Santa Monica, CA 904035

6


OFFERING MEMORANDUMwww.CONCORD-RE.com | [email protected] | 310.551.0660


KENNY STEVENS

BRE# 01090251

C: 310-968-7005

[email protected]

BRE# 01926201

C: 310-900-9505

[email protected]

ERIC VON BLUECHER

1143-45 11th street santa monica ca 90403 · the expo line is a light-rail line that runs between...

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