for sale - images1.loopnet.com€¦ · for sale rare ±0.46-acre coastal commercial development...

FOR SALERARE ±0.46-ACRE COASTAL COMMERCIAL DEVELOPMENT OPPORTUNITYOR 7,520 SF FREESTANDING RETAIL BUILDING FOR INVESTOR OR OWNER/USER

1630 Pacific Coast Highway | Hermosa Beach, CA

OFFERING MEMORANDUM

TABLE OF CONTENTS

No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. C ooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. NAI Capital CA BRE #01990696

I EXECUTIVE SUMMARYA. Opportunity Overview .............................2B. Property Highlights .................................3

II THE OFFERINGA. Property Overview ..................................5B. Aerials ...................................................6C. Location Maps .......................................8D. Site Plan ................................................9E. Property Photos ...................................10F. Assessor’s Parcel Map .........................14G. Zoning .................................................15

III AREA OVERVIEWA. Greater Los Angeles Region .................17B. City of Hermosa Beach ........................18C. Demographics .....................................19D. Retail Market Overview-Beach Cities .....20

Jonathan ColemanReal Estate West310.546.3441 [email protected] BRE Lic #00707775

Real Estate West905 Manhattan Beach BoulevardManhattan Beach, CA 90266

David Knowlton, SIOR, CCIMExecutive Vice [email protected] BRE Lic #00893394

NAI Capital1920 Main Street, Suite 100Irvine, CA 92614

Contact Information

I | EXECUTIVE SUMMARY

Real Estate West & NAI Capital Inc. have been

selected to exclusively offer this rare 0.46-acre

Commercial Development/Retail Investment

Opportunity in Hermosa Beach, California. The

opportunity allows the development of an unusually

large commercial property in this beach community

while collecting a stabilized rental income from

the current tenant – Jack’s Surfboards – through

11/30/2020. Alternatively, the buyer may retain

the existing 7,520 SF freestanding retail building

as a continuing leased investment or future owner/

user occupancy. The City’s broadly allowed uses

include retail, office, restaurant, hospitality and

many services.

A | OPPORTUNITY OVERVIEW

SITE

1630 PCH | EXECUTIVE SUMMARY | 2

LOCATION HIGHLIGHTS

• Hard corner location

• Rectangular-shaped site

• Potential 2-street access

• Excellent on-site and street parking

• over 200’ of Pacific Coast Highway

frontage

• 53,000 Motorists per day

PROPERTY Prime 0.46-acre commercial land parcel located in the heart of

Hermosa Beach; within walking distance of the Hermosa Beach Pier

Lease Income: Existing income stream to

help support entitlement expenses

Investor/Owner/User: Secondary opportunity to maintain

the existing 7,520 SF freestanding retail building with

the current lessee, or occupy at lease termination

LOCATION International tourist destination; 3,000 feet from the beach;

3.3 miles from the 405 Freeway; 5.0 miles from LAX;

Ideal year-round climate; Excellent demographics

DEMOGRAPHICS Outstanding 2017 Estimated Average Household Income

1 Mile

$189,123

3 Mile

$156, 475

5 Mile

$125,127

LAND USE DESIGNATION Special Planning Area 8 - the broadest commercial zoning

designation in the City of Hermosa Beach

CURRENT USE Leased to Jack’s Surfboards through 11/30/2020

PRICE $9,500,000

B | PROPERTY HIGHLIGHTS

1630 PCH | EXECUTIVE SUMMARY | 3

II | THE OFFERING

A | PROPERTY OVERVIEW

FEATURES

ADDRESS 1630 Pacific Coast Highway, Hermosa Beach, CA 90254

SITE 20,049 SF (0.46 Acres)

BUILDING 7,520 SF Freestanding Retail Building with Over 120’ of Window Frontage and 204’ of Street Frontage

YEAR BUILT 1958

SITE DIMENSIONS 204’ Frontage x 100’ Depth (Approx.)

SITE DESCRIPTION

Hard Corner Location; Fully Improved; Mostly Flat; Hillside Slope Along East Portion of Property

TRAFFIC COUNT 53,000 Motorists Per Day on Pacific Coast Highway

PARKING 16 On Site Parking Plus Street Parking

ZONING Special Planning Area 8 (SPA-8); Allows All Uses Permitted in C-3 Zone

FAR 1.0

APN’S 4185-005-001, 002, 005

UTILITIES/INFRASTRUCTURE

Electric – On siteWater - On sitePhone - On siteSewer - On siteGas - On siteStreet – YesSidewalk – YesCurb/gutter - Yes

CURRENT LEASE Property is subject to an existing lease with Jack’s Surfboards which expires on 11/30/2020. Lessee has no options to extend or purchase. Jack’s Surfboards’ Lease Abstract is available subject to a confidentiality agreement.

1630 PCH | THE OFFERING | 5

B | RETAIL TRADE AERIAL


Artesia Blvd

Paci f ic Ocean

Pacific C

oast Hw

y

Herm

osa Ave

0.5 Mile

SITE

Pier AveAvia

tion B

lvd

Grant Ave

Prosp

ect AveValley D

r

B | AERIAL


405

107

213

1 Manhattan Beach Blvd

Robinson St

Ing

lew

oo

d A

ve

Rin

dg

e Ln

Haw

tho

rne

Blv

d

Do

ty A

ve

Marine Ave

W 182nd St

W 147th St

W 135th St

Artesia Blvd

Sepulveda Blvd

Cre

nsha

w B

lvd

Mad

rona

Ave

Avi

atio

n B

lvd

Fla

gle

r Ln

Pac

ific

Ave

Wes

tern

Ave

W 190th St

Van

Nes

s A

ve

Rosecrans Ave

Paci f ic Ocean

Del Amo Blvd

Torrance Blvd

Ear

l St

Pacific C

oast Hw

y

Herm

osa Ave

Redondo Beach Blvd

Prospect A

ve

3 Miles

1 MileSITE

C | LOCATION MAPS

SITE

405

107

1 Manhattan Beach Blvd

Vail

Ave

Ing

lew

oo

d A

ve

N P

eck

Ave

Haw

tho

rne

Blv

d

Marine Ave

W 182nd St

Artesia Blvd

Fla

gle

r Ln

Avi

atio

n B

lvd

W 190th St

Del Amo Blvd Anza A

ve

Pacific C

oast Hw

y

Herm

osa Ave

Ard

more A

ve

Beryl

St

Ripley Ave

Prospect A

ve


405

210

405110

60510

5

10 Mile

20 Mile

30 Mile

PasadenaGlendale

Los Angeles County

Orange County

Bradbury

AlhambraBeverly Hills

Santa Monica

Inglewood

Hawthorne

Compton

Redondo Beach

Torrance

El Monte

Valinda

Industry

Whittier

Fullerton

Anaheim

Westminster

Long BeachPalos Verdes Estates

Lakewood

Downey

Huntington Park

D | SITE PLAN


PACIFIC COAST HWY

17

TH

ST

RE

ET

15’

75’

Planter

Pylon Sign

Trash

116’

127’

Not to Scale. A l l measurements are approximate and not guaranteed.

20’

61’

E | PROPERTY PHOTOS


F | ASSESSOR’S PARCEL MAP


Special Planning Area 8: Allows all commercial uses as those permitted in the C-3

General Commercial zone. This is the broadest commercial zone in Hermosa Beach.

Allowed uses include retail, office, restaurants, service & hospitality among many others.

C-3 General Commercial Zone: Provides opportunities for the full range of office, retail,

and service businesses deemed suitable for the city and appropriate for the Pacific

Coast Highway and Aviation Boulevard commercial corridors, including businesses not

appropriate for other zones because they attract heavy vehicular traffic or have specific

adverse impacts.

Two sets of standards apply in this specific plan area: first tier and second tier. Compliance

with first tier standards allows the project to proceed with a building permit. If a project

goes beyond any of the first tier standards, the procedure for submittal and approval of

a precise development plan shall be followed. Developments must be in compliance with

second tier standards at all times.

1ST TIER MIN/MAX REQUIREMENTS

2ND TIER MIN/MAX REQUIREMENTS

MAX. HEIGHT 25 Feet 35 Feet

COVERAGE Max. 1.0 F.A.R.* N/A

MAX. SIZE 10,000 SF Gross Floor Area

N/A

MIN. LANDSCAPE COVERAGE 5% of lot area 2% of lot area

*Gross floor area/lot area ratio (excludes parking structures)

CONTACT INFORMATION

City Hall

1315 Valley Drive

Hermosa Beach, CA 90254

Phone: (310) 318-0239

Web: www.hermosabch.org

Planning Division: (310) 318-0242

Building Division: (310) 318-0235

Code Enforcement Division: (310) 318-0235

G | ZONING OVERVIEW


III | AREA OVERVIEW

The Greater Los Angeles Region is the second largest

urban region in the United States and is second only to

the New York Metropolitan Area in terms of population

and economic output; encompassing five counties in

Southern California, Orange County, Los Angeles County,

Riverside County, San Bernardino County and Ventura

County. As of the 2010 U.S. Census, the estimated

population by 2015 was 18.7 million. The region has

continuously urbanized stretching from Ventura County to

the southern border of Orange County. The Los Angeles

area continues to grow, primarily on the periphery where

new, less expensive, undeveloped areas are being

sought. In these areas, populations as well as housing

prices continue to explode especially in Riverside and San

Bernardino Counties. Growth continues not only outside

the existing urbanized area but also adjacent to existing

development in the central areas. As in virtually all US

core cities, there is now vigorous residential development

in the downtown area with both new buildings and

renovation of former office buildings. The Region is home

to over a quarter of all California residents.

Orange County and Los Angeles County are part of

the Los Angeles Metropolitan Area, the inner core of

the Greater Los Angeles Region. Orange County is

mostly suburban with no defined urban center. The

establishment of the tourism industry allowed Orange

County to become an important economic center. Today

Orange County is home to many tourist attractions such

as Disneyland, California Adventure, Knott’s Berry Farm,

Discovery Science Center and Bower Museum along with

extensive beaches and coastlines.

The explosive growth of the Greater Los Angeles Region

can be attributed to its climate, the availability of land and

many booming industries such as oil, automobile, motion

pictures and aerospace which make it easy for employers

to attract employees from around the world.

Factors affecting continued growth and economic

success in the Los Angeles area include:

• The area’s economy is diverse with an emphasis

on aerospace, business, services, entertainment,

technology, tourism and trade

• The ports of Long Beach and San Pedro provide

deep water shipping access

• Five international airports provide air freight and

passenger service, plus extensive freeway and rail

systems

• The Basin is strategically situated for transacting

business in two growing trade areas; the Pacific Rim

and Mexico

A | GREATER LOS ANGELES REGION OVERVIEW

1630 PCH | AREA OVERVIEW | 17

Hermosa Beach is located in the South Bay region of the greater Los Angeles

area; just 5 miles south of Los Angeles International Airport. It is one of the three

Beach Cities and is bordered by the other two; Manhattan Beach to the north and

Redondo Beach to the south and east.

The city’s beach is popular for sunbathing, beach volleyball, surfing, paddle

boarding and bars. The city itself extends only about 15 blocks from east to west

and 40 blocks from north to south, with the Pacific Coast Highway running down

the middle. Situated on the Pacific Ocean, Hermosa’s average temperature is

70°F (22°C) in the summer and 55°F (13°C) in the winter. It has an average of

325 days of sunshine a year.

The wide flat beach makes Hermosa Beach one of the most popular places to

play beach volleyball, from professional to amateur. Hermosa Beach is home

to the AVP Hermosa Beach Open tournament and several amateur CBVA

tournaments during the year. The Strand stretches north to Santa Monica and

south to Redondo Beach, and is a popular place for walkers, joggers and biking.

Hermosa Beach is within a few minutes commute of many of the largest and

best known names in corporate America in such fields as aerospace, high

tech, industrial, service and financial. And with scores of fashionable boutiques,

independent shops, restaurants, and outdoor activities -- all within 1.4 square

miles and easy walking distance — Hermosa Beach offers something for everyone.

B | CITY OF HERMOSA BEACH


C | DEMOGRAPHICS OVERVIEW


Population 1 Mile 3 Mile 5 Mile

2017 Estimated Population 34,505 178,593 418,962

2022 Projected Population 35,045 181,106 425,464

2017 Male Population 17,583 89,332 206,602

2017 Female Population 16,922 89,261 212,360

2017 Total Adult Population 28,722 139,272 321,655

2017 Total Businesses 2,095 8,863 21,587

Income 1 Mile 3 Mile 5 Mile

2017 Estimated Household Income: Average $189,123 $156,475 $125,127

2017 Estimated Household Income: Median $131,580 $116,600 $94,964

2017 Estimated Per Capita Income $85,673 $63,969 $48,478

2022 Projected Household Income: Average $243,150 $195,561 $155,241

2022 Projected Household Income: Median $153,641 $134,287 $109,945

2022 Projected Per Capita Income $112,447 $81,766 $48,478

Households 1 Mile 3 Mile 5 Mile

2017 Estimated Households 15,628 72,940 162,108

2017 Average Household Size 2.2 2.4 2.6

2022 Projected Households 16,205 75,665 168,136

Age 1 Mile 3 Mile 5 Mile

Median Age 37.8 38.5 37.9

Age 19 Years or Less 6,783 39,321 97,307

Age 20 to 64 Years 23,280 114,462 263,660

Age 65 Years or Over 4,442 24,810 57,995

2017 Total population: under 5 years 2,129 6.2% 10,801 6.0% 25,718 6.1%

2017 Total population: 5 to 9 years 1,864 5.4% 10,320 5.8% 24,900 5.9%











2017 Total population: 60 to 64 years 2,036 5.9% 10.730 6.0% 24,208 5.8%



2017 Total population: 75 to 79 years 694 2.0% 4,185 2.3% 10,028 2.4%

2017 Total population: 80 to 84 years 476 1.4% 2,825 1.6% 6,956 1.7%

2017 Total population: 85 years and over 537 1.6% 3,163 1.8% 7.720 1.8%

G | RETAIL MARKET OVERVIEW - BEACH CITIES

Rents see 10% increase year over year. Market is expected to remain tight in 2018. The Beach Cities refers to the three coastal

cities of Hermosa Beach, Manhattan Beach and

Redondo Beach. These cities are renowned for

their beaches and municipal piers and remain

popular with tourists, beachgoers, and surfers.

Owing to this reputation, asking rents for retail

space averaged $3.29/SF in the third quarter,

representing a 10% increase over last year at this

time. Additionally, asking rents are 81% higher in

the Beach Cities than the surrounding South Bay

area in general. The vacancy rate this quarter

registered just 3.0%, steady over last year. This

is the second lowest vacancy seen in the Beach

Cities the since the recession.

Low vacancy and availability rates have slowed

leasing activity in the Beach Cities. Just over

26,000 square feet were leased in the third

quarter, with about half that space taken down in

Redondo Beach. Sale volume remained similarly

low, but cap rates in 2017 averaged 3.57%,

down from 5.04% last year.

Asking rental growth has been strongest in

Redondo Beach and Hermosa Beach, which saw

annual gains of 12.5% and 9.9%, respectively.

However, asking rates remain highest in

Manhattan Beach at $4.25/SF, followed by

Hermosa Beach at $3.75/SF, and Redondo

Beach at $2.98/SF. With strong demand for retail

space and limited new supply, asking rents are

expected to continue increasing in 2018, while

the vacancy rate should remain low.

Market Trends

Total Inventory (SF) 6,158,435

3Q17 2Q17 3Q16

Asking Rent (Per SF) $3.29 $3.13 $2.99

Vacancy Rate (%) 3.0% 3.1% 3.0%

Leasing Volume (SF) 26,105 34,639 40,423

Sale Volume (SF) 34,291 147,785 48,614

Under Const. (SF) 4,984 4,984 3,434

Deliveries (SF) 0 0 0


0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

$2.50

$2.70

$2.90

$3.10

$3.30

$3.50

3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Vacancy (%) Asking Rent ($/SF)

Asking Rent and Vacancy

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

0

30,000

60,000

90,000

120,000

150,000

3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Sq

uare

Fee

tSale Volume Cap Rate

Sales Volume and Cap Rate

Headquarters

Encino 16001 Ventura Blvd., Ste. 200 Encino, CA 91436 (818) 905-2400

Los Angeles County

Commerce 500 Citadel Dr., Ste. 100 Los Angeles, CA 90040 (323) 201-3600

Diamond Bar 21660 E. Copley Dr., Ste. 320 Diamond Bar, CA 91765 (909) 348-0600

Pasadena 225 S. Lake Ave., Ste. 1170 Pasadena, CA 91101 (626) 564-4800

Torrance 970 W. 190th St. Dr., Ste. 100 Torrance, CA 90502 (310) 532-9080

Valencia 27451 Tourney Rd., Ste. 200 Valencia, CA 91355 (661) 705-3550

West Los Angeles 11835 Olympic Blvd., Ste. 700E Los Angeles, CA 90064 (310) 440-8500

Ventura County

Oxnard 300 Esplanade Dr., Ste. 1660 Oxnard, CA 93036 (805) 278-1400

Westlake Village 2555 Townsgate Rd., Ste. 320 Westlake Village, CA 91361 (805) 446-2400

Simi Valley 2655 First St., Ste. 250 Simi Valley, CA 93065 (805) 522-7132

Orange County

Irvine 1920 Main St., Ste. 100 Irvine, CA 92614 (949) 854-6600

San Clemente 120 1/2 South El Camino Real, Ste. 210 San Clemente, CA 92674 (949) 874-0415

Inland Empire

Ontario 800 N. Haven Dr., Ste. 400 Ontario, CA 91764 (909) 945-2339

Temecula Valley 27720 Jefferson Ave., Ste. 330 Temecula, CA 92590 (951) 491-7590

Victorville 13911 Park Avenue, Ste. 206 Victorville, CA 92392 (760) 780-4200

Coachella Valley

Palm Desert 75-410 Gerald Ford Dr., Ste. 200 Palm Desert, CA 92211 (760) 346-1566

NAI Capital Offices

No warranty, express or implied, is made as to the accuracy of the information contained herein. this information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. NAI Capital CA BRE #01990696

David Knowlton, SIOR, CCIMExecutive Vice [email protected] BRE Lic #00893394

Jonathan ColemanReal Estate West310.546.3441 [email protected] BRE Lic #00707775

Contact Information

CA BRE License #01990696

800.468.2618 • naicapital.com

FOR SALE | RARE ±0.46-ACRE COASTAL COMMERCIAL DEVELOPMENT OPPORTUNITY OR 7,520 SF FREESTANDING RETAIL BUILDING FOR INVESTOR OR OWNER/USER

for sale - images1.loopnet.com€¦ · for sale rare ±0.46-acre coastal commercial development...

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