Post on 26-Mar-2020
transcript
JORDAN RUBINSTEIN • Vice President • 310-887-3489 • CalBRE #01736033
758-772 S. Los Angeles St., Los Angeles, CA 90014
REDEVELOPMENT OPPORTUNITY
DTLA Retail for SaleMULTIGENERATIONAL ASSET
$7,950,000
DTLA Retail Building for Sale with Upside Potential 758 - 772 S. LOS ANGELES ST., LOS ANGELES, CA 90014
JORDAN RUBINSTEIN 310-887-3489 • jordanrubinstein@kennedywilson.com CalBRE#01736033
Kennedy Wilson | 151 S. El Camino Drive, Beverly Hills, CA 90212 | 310-887-6400 Kennedy Wilson Properties, Ltd. (Responsible Broker, CalBRE #00659610) makes no warranty or representation as to the accuracy of the information contained herein. Terms of sale or lease and availability of the property are subject to change or withdrawal without notice. 2
Executive SummaryFor the first time since the 1960’s, Kennedy Wilson is pleased to present the opportunity to acquire the fee simple interest in 758-772 S. Los Angeles Street, a 17,096-square-foot retail building located in the Traditional Core of Downtown Los Angeles. This multigenerational retail building is situated on a prime corner, just two blocks east of the rejuvenated Broadway Theater District and Apple’s LA flagship store at the historic Tower Theater.
The four-tenant retail building features ample second story space which is currently being used as storage by tenants but is ideal for conversion into showroom or office space. This is an exceptional investment opportunity with significant upside, surrounded by several major development projects already underway.
Property DataAsking price: $7,950,000 / $465 PSF
Building Size: 17,096 SF
Stories: 2
Lot Size: 10,837 SF / 0.25 Acres
APN: 5145-003-001
Zoning: M2-2DState Enterprise / Federal Opportunity ZoneTier 3 T.O.C.Greater Downtown Housing Incentive Area“Traditional Core” (www.dtla2040.org)
Current Gross Income: $206,111
Pro Forma Gross Income: $468,000
DTLA Retail Building for Sale with Upside Potential 758 - 772 S. LOS ANGELES ST., LOS ANGELES, CA 90014
JORDAN RUBINSTEIN 310-887-3489 • jordanrubinstein@kennedywilson.com CalBRE#01736033
Kennedy Wilson | 151 S. El Camino Drive, Beverly Hills, CA 90212 | 310-887-6400 Kennedy Wilson Properties, Ltd. (Responsible Broker, CalBRE #00659610) makes no warranty or representation as to the accuracy of the information contained herein. Terms of sale or lease and availability of the property are subject to change or withdrawal without notice. 3
Broadway Trade CenterFormer May Co. building under renovation by Waterbridge Capital when completet will incldue 470,000 SF of office space, 298,000SF of retail and a 117,000 SF hotel.
Apple FlagshipAfter three years of rumors, Apple will set up a one-of-a kind flagship retail store at the historic Tower Theatre. Sneaker giant Vans DTLA outpost is under construction at the Singer Building next door.
The Griffin / The Grace on SpringHolland Partners’ pair of recently completed luxury apartments total 590 units, each with ground floor retail.
Dearden’s & Norton BuildingsWork is underway on Urban Offerings/ESI Ventures’ repositioning of the former Dearden’s furniture store building and nearby Norton Building into office/retail mixed-use with the latter featuring a rooftop food hall.
ActiveDevelopmentNearby
= Subject Property
MAIN STREET
8TH STREET
DTLA Retail Building for Sale with Upside Potential 758 - 772 S. LOS ANGELES ST., LOS ANGELES, CA 90014
JORDAN RUBINSTEIN 310-887-3489 • jordanrubinstein@kennedywilson.com CalBRE#01736033
Kennedy Wilson | 151 S. El Camino Drive, Beverly Hills, CA 90212 | 310-887-6400 Kennedy Wilson Properties, Ltd. (Responsible Broker, CalBRE #00659610) makes no warranty or representation as to the accuracy of the information contained herein. Terms of sale or lease and availability of the property are subject to change or withdrawal without notice. 4
Fashion District Location 758-772 S. Los Angeles Street is centrally situated in the fastest growing segment of DTLA’s Fashion District. Two blocks away on south Broadway, major brands are investing in flagship retail locations including Apple, West Elm, Vans, and Nike Jumpman, and the area’s multifamily boom continues with Holland’s major luxury development Griffin on Spring nearby.
Other area developments include a rooftop foodhall and restaurant by ESI Ventures/Urban Offerings at the Norton Building across from the property, and a three-block megaproject called City Market with plans for 312,112 square feet of corporate and higher-education campus space, 945 residential units, a 201-key hotel, nearly 295,000 square feet of commercial space and about 225,000 square feet of retail space.
1. No Ghost Bears2. Sonoratown3. Enerjuicer Cafe4. Preux & Proper5. Tuck Hotel6. Terroni7. Arqade Cafe8. Las Perlas Tequila Bar9. The Association10. Cole’s11. Mignon12. Juice Crafters13. Tierra Mia Coffee
14. L.A. Cafe15. The Falls16. Spring Street Bar17. Clifton’s18. Gourmet LA Bakery19. The Orpheum Theater20. Ace Hotel21. Starbucks22. Joe’s Pizza23. Little Easy24. The Down and Out25. BUZZ26. Bolt Barbers
27. The Regent Theater28. Perch29. Starbucks30. Le Pain Quotidien31. Tender Greens32. Casey’s Irish Pub33. Bottega Louie34. Wendell35. Stumptown Coffee36. California Market Center37. NoMad Hotel38. Freehand Hotel
Nearby Restaurants & Bars = Hotel
8th Street
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CityMarket
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DTLA Retail Building for Sale with Upside Potential 758 - 772 S. LOS ANGELES ST., LOS ANGELES, CA 90014
JORDAN RUBINSTEIN 310-887-3489 • jordanrubinstein@kennedywilson.com CalBRE#01736033
Kennedy Wilson | 151 S. El Camino Drive, Beverly Hills, CA 90212 | 310-887-6400 Kennedy Wilson Properties, Ltd. (Responsible Broker, CalBRE #00659610) makes no warranty or representation as to the accuracy of the information contained herein. Terms of sale or lease and availability of the property are subject to change or withdrawal without notice. 5
Fashion District EvolutionOnce known primarily as Downtown’s wholesale and off-price quarter, the Fashion District counts more than 1,000 stores in its 100 blocks, selling everything from fabrics to flowers, and of course, fashion.
Home to the city’s $10 billion apparel industry, with 30,000 workers and 50,000 annual buyer visits, the area draws crowds to monthly “Sample Sale” events. Its most famous destination, Santee Alley, boasts more than 150 shops offering the latest fashions at steep discounts.
As the revitalization of Broadway has taken hold, the boundaries between the Fashion District and the Historic Core have blurred, with the 2-million square foot California Market Center emerging as a new commercial center, and several new hospitality projects in development on Broadway south of Olympic. With the increased residential and commercial activity, the district is evolving beyond the wholesale trade.
(Source: DCBID 2018 Retail Report)
Clockwise from top left: California Market Center; lobby of The Griffin on Spring; rendering of Apple’s new flagship store at the historic Tower Theatre; No Ghost Bars coffee shop; West Elm showroom on Broadway
DTLA Retail Building for Sale with Upside Potential 758 - 772 S. LOS ANGELES ST., LOS ANGELES, CA 90014
JORDAN RUBINSTEIN 310-887-3489 • jordanrubinstein@kennedywilson.com CalBRE#01736033
Kennedy Wilson | 151 S. El Camino Drive, Beverly Hills, CA 90212 | 310-887-6400 Kennedy Wilson Properties, Ltd. (Responsible Broker, CalBRE #00659610) makes no warranty or representation as to the accuracy of the information contained herein. Terms of sale or lease and availability of the property are subject to change or withdrawal without notice. 6
Property Images
APN: 5145-003-001
DTLA Retail Building for Sale with Upside Potential 758 - 772 S. LOS ANGELES ST., LOS ANGELES, CA 90014
JORDAN RUBINSTEIN 310-887-3489 • jordanrubinstein@kennedywilson.com CalBRE#01736033
Kennedy Wilson | 151 S. El Camino Drive, Beverly Hills, CA 90212 | 310-887-6400 Kennedy Wilson Properties, Ltd. (Responsible Broker, CalBRE #00659610) makes no warranty or representation as to the accuracy of the information contained herein. Terms of sale or lease and availability of the property are subject to change or withdrawal without notice. 7
Income Schedule
Suite Tenant MonthlyBase Rent
Monthly Pro Forma Rent (7)
LeaseType
LeaseStart Lease End
RenewalOption
OptionsTerms
SecurityDeposit
772 S. Los Angeles Italian Corner $6,475.95 $9,000.00 MG 10/15/2014 10/14/2019 None N/A $12,636.00
768 S. Los Angeles Vacant (1) - $8,000.00 NNN - - - - -
766 S. Los Angeles Gila Fabrics $5,500.00 $8,000.00 MG 2/1/2011 6/31/2021 None N/A $10,000.00
758 S. Los angeles Suit Fellas $5,200.00 $8,000.00 MG 7/15/2015 7/14/2020 5 years Not stated $10,400.00
Wall signage (6) - - $2,000.00 - - - - - -
Upstairs Storage/Converted Mezz. - - $4,000.00 NNN - - - - -
Monthly Gross Income $17,175.95 $39,000.00
Annual Gross Income $206,111.40 $468,000.00Existing Pro Forma
Notes:1. Rent for vacant unit assumes pro forma rent 2. Certain tenant lease agreements require 25% pro rata reimbursement of Common Area Operating Expenses however Owner does not bill Tenants for reimbursement of all CAM charges
(Buyer advised to review lease agreements) 3. Owner bills all Tenants for reimbursement of BID expenses 4. Utilities are paid by Gila Fabrics directly and reimbursed by remaining Tenants5. No official documentation as to the exact square footage of each space (Building SF: 17,096)6. Owner has received letter of interest for propsoed wall signage lease7. Pro forma lease rates are estimated.
DTLA Retail Building for Sale with Upside Potential 758 - 772 S. LOS ANGELES ST., LOS ANGELES, CA 90014
JORDAN RUBINSTEIN 310-887-3489 • jordanrubinstein@kennedywilson.com CalBRE#01736033
Kennedy Wilson | 151 S. El Camino Drive, Beverly Hills, CA 90212 | 310-887-6400 Kennedy Wilson Properties, Ltd. (Responsible Broker, CalBRE #00659610) makes no warranty or representation as to the accuracy of the information contained herein. Terms of sale or lease and availability of the property are subject to change or withdrawal without notice. 8
Downtowners are a diverse group of workers, residents and visitors. It is a relatively young population, with high levels of professional accomplishment, education, and income. Residents are more likely to work in arts and entertainment, while workers are more concentrated in traditional industries.
Source: Downtown Center Business Improvement District, 2018 Survey
DTLA Demographics
89%
86%
83%
2018 DOWNTOWN LA SURVEYLIVE 65,000 Residents
$98,900 MEDIAN INCOME
38MEDIAN AGE
59% FEMALE
41% MALE47%
MARRIED/PARTNERED80% COMPLETED 4 YEARS
OF COLLEGE OR HIGHER
72% WANT MORE SUPERMARKETS
54% WANT MORE CLOTHING/APPAREL
WORK 500,000 Weekday Population
VISIT 19 Million Visitors
$97,800 MEDIAN INCOME
39MEDIAN AGE
65% FEMALE
35% MALE52%
MARRIED/PARTNERED76% COMPLETED 4 YEARS
OF COLLEGE OR HIGHER
64% WANT MORE SUPERMARKETS
52% WANT MORE CLOTHING/APPAREL
70% FEMALE
30% MALE
65% COMPLETED 4 YEARSOF COLLEGE OR HIGHER
$71,300 MEDIAN INCOME
40MEDIAN AGE
44%MARRIED/PARTNERED
62% THINK DOWNTOWN LA ISMOVING IN THE RIGHT DIRECTION
HAVE VISITED GRAND CENTRAL MARKET
HAVE VISITED LA LIVE
HAVE VISITED STAPLES CENTER
68%
54%
36%
REGULARLY VISIT GRAND CENTRAL MARKET
ARE AT TOP, SENIOR, OR PROFESSIONAL STAFF LEVELS
WOULD CONSIDER LIVING IN DTLA IN THE FUTURE
86%
66%
60%
REGULARLY VISIT FIGAT7TH
ARE PASSIONATE ABOUT DTLA
HAVE LIVED IN DTLA FOR LESS THAN 5 YEARS