A 47-Home, Newly Completed, Boutique Multi-Housing Investment Opportunity
Hollywood, California
Holliday GP Corp. (“HFF”), California Bureau of Real Estate License #01385740.
HFF, as exclusive advisor, is pleased to present for the first time ever, Vues on Gordon (the “Property”); a newly constructed, 47-home stabilized Class-A boutique multi-housing investment opportunity located in the highly amenitized and job saturated Hollywood neighborhood of Los Angeles. Completed in 2018 and currently 100% leased, Vues on Gordon boasts elegantly designed interior finishes, and a modern and thoughtfully amenitized living experience. Vues on Gordon’s unparalleled Hollywood location is designated “Very Walkable” (82 Walk Score) offering tenants access to an array of world-class shopping, dining and entertainment destinations without needing a vehicle. Hollywood’s distinction as the entertainment capital of the world has evolved to make a home for the blossoming tech and media industries and solidified itself as one of Southern California’s top employment centers.
With a limited supply pipeline beyond projects currently under construction, and a population expected to grow by nearly 3% over the next 5-years, Vues on Gordon offers investors an opportunity to acquire a premier, boutique urban infill asset that is poised to benefit from heightened demand and continued public and private investment, and development of Hollywood for years to come.
The Opportunity
2HFF
UNIT MIX
51% 24 HOMES
9% 4 HOMES
40% 19 HOMES
TWO BEDROOMS
THREE BEDROOMS ONE BEDROOMS
PROPERTY ADDRESS1558 GORDON STREET
LOS ANGELES, CA 90028
YEAR COMPLETED2018
BUILDING TYPE4 STORIES RESIDENTIAL OVER 2-LEVEL
SUBTERRANEAN PARKING GARAGE
AVERAGE RESIDENT ANNUAL SALARY$176,000 (20% AVERAGE RENT TO INCOME)
TOTAL RESIDENTIAL RSF±39,690 SF (±844 AVG. SF)
SITE SIZE±0.48 ACRES | ±21,048 SF
NUMBER OF APARTMENT HOMES47 HOMES
(43 MARKET RATE; 4 VERY LOW INCOME)
OCCUPANCY98% OCCUPIED | 100% LEASED
PARKING42 SINGLE SPACES 32 TANDEM SPACES
74 TOTAL SPACES (±1.57/HOME)
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Boutique Luxury Living – Where Luxury & Elegance Meet Sophistication
Vues on Gordon offers meticulously designed one, two, and three-bedroom apartment homes averaging ±844 square feet in a vibrant boutique community with the perfect balance of amenitized and intimate living. Home interiors are decorated with high-end cabinetry, quartz countertops, GE stainless steel appliances, vented washer and dryers, luxury plank flooring, plush carpeting in bedrooms, recessed lighting, Nest thermostats, USB charging ports, custom window treatments, and backlit vanities. In addition to the luxurious interior finishes, residents of the Property enjoy state-of-the-art community amenities such as a fully amenitized roof top deck with stunning views of the Hollywood Hills and the Hollywood sign, a beautifully landscaped courtyard with a fountain and BBQ grills, co-working creative space, bike storage, and reserved subterranean garage parking.
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Transit-Oriented Development in the Heart of Hollywood
Vues on Gordon benefits from an outstanding transit-oriented location, as the Property is located just steps away from the Metro Red Line Hollywood & Vine Station (0.5 miles away) and the 101 Freeway (0.3 miles away), both of which provide tenants convenient access to all major employment centers throughout Los Angeles. Moreover, the Property’s location in the heart of Hollywood allows for convenient access to a robust amenity base in the area including the W Hotel, the Dream Hotel, ArcLight Cinemas, Pantages Theater, Hollywood Bowl, amongst many others.
15-MINUTE WALK FROM
HOLLYWOOD / VINE METRO RED LINE STATION
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Thriving Creative Employers Expanding Corporate Footprint in Hollywood
Vues on Gordon’s central location is bolstered by the growing entertainment industry in Hollywood with iconic companies including Netflix, Viacom, Fender, Sunset Bronson and Sunset Gower Studios, and Paramount continuing to expand and invest in the area. Netflix in particular has made one of the largest investments in Hollywood, as it will occupy an impressive ±1.1MM SF of office space in Hollywood once they occupy all of their already committed space. Netflix currently occupies office space at ICON (±514,500 SF) and CUE (±92,000 SF), employing over 1,500 individuals, and recently announced it will be expanding their footprint by leasing the entire 13-story EPIC building on Sunset (±275,000 SF; 2020 Completion) and all available office space at Kilroy’s Academy on Vine mixed-use development (±355,000 SF; 2020 Completion), all of which are within walking distance from Vues on Gordon. Not only do tenants have access to 77,900 jobs within Hollywood, but also within a 30-minute drive there are over 911,200 jobs, many of which are located in the Miracle Mile, Wilshire District, West Hollywood and Downtown Los Angeles employment centers.
“ The entertainment industry is in the first inning of a content explosion”
EMPLOYMENT CENTER # OF JOBS SF of Office
DISTANCE FROM
SUBJECT
Hollywood/Miracle Mile/Wilshire District 256,000 31 million sq. ft. ±1.0 miles
West Hollywood 25,100 7.4 million sq. ft. ±3.0 miles
Beverly Hills 17,000 11.2 million sq. ft. ±5.5 miles
Glendale 95,000 12 million sq. ft. ±5.5 miles
Downtown Los Angeles 500,000 73 million sq. ft. ±7.0 miles
Century City 24,000 11.1 million sq. ft. ±7.5 miles
Pasadena 72,000 7.5 million sq. ft. ±14.5 miles
TOTAL : 989,100 153.2 million sq. ft.
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Revival of Hollywood
In recent years, Hollywood has benefitted from a major urban revitalization. Since 2009, more than $5 billion in public and private capital has been invested for residential, commercial, entertainment, and retail developments throughout Hollywood. The continued improvement in overall Hollywood infrastructure has resulted in strong growth in the residential and office market along with a surging tourism industry. Furthermore, inventory for office space is on track to reach 7.5 million square feet over the next five years, a 15% increase based on the current inventory. This construction boom coupled with the strengthening economic drivers has made Hollywood one of the top real estate markets in Southern California.
“ The entertainment industry is in the first inning of a content explosion”
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Exceptional Location Footsteps Away from World-Class Entertainment
Within walking distance of Vues on Gordon are numerous world-renowned restaurant and entertainment hotspots. The ease of access to a variety of amenities and attractions makes Hollywood a suitable environment for an unlimited scope of interests and a true live/work/play urban center. Residents at Vues on Gordon enjoy the best that Hollywood has to offer in employment, dining, shopping, and culture all within an easy stroll.
Delphine
Sugarfish
Tatsu Ramen
Stout Burgers & Beers
Trejo’s Cantina
APL Restaurant
Murakami Sushi
Paley
The Highlight Room
Avenue
Tao
Beauty & Essex
Warwick
Mama Shelter
Hollywood Bowl
Pantages Theatre
Equinox Hollywood
LA Fitness
CorePower Yoga
Orangetheory Fitness
Barry’s Bootcamp
Wild Card Boxing
Gold’s Gym
Runyon Canyon
NEARBY RESTAURANTS
NEARBY NIGHTLIFE
JOBS ATTRACTION EDUCATION
NEARBY FITNESS/RECREATION
Downtown Los Angeles
±73MM SF of Office ±500,000 Jobs
±6.5 Miles Away
Hollywood/Miracle Mile/Wilshire District ±31MM SF of Office
±256,000 Jobs±1,900,000 SF
Hollywood Forever Cemetery
±606,500 SF
±94,300 SF
±275,000 SF (EPIC Development; 2020
Completion)
±115,000 SF
Emerson College
SUNSET BOULEVARD
HAROLD WAY
10 MINUTE WALK
15 MINUTE WALK
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Century City ±11MM SF of Office
±24,000 Jobs ±8.0 Miles Away
West Hollywood ±7.4MM SF of Office
±25,100 Jobs ±3.5 Miles Away
±93,000 SF
±23,000 SF
The Fonda Theatre
±211,000 SF
Hollywood Palladium
±45,000 SF
The Los Angeles Film School
±113,000 SF
Ripley’s Believe it or Not!
±4,600 SF
±38,000 SF
Hollywood Wax Museum
±196,800 SF
±92,400 SF
HOLLYWOOD BO
ULEVARD
N. GOWER STREET
CARLTON WAY
METRO RED LINEHOLLYWOOD / VINE STATION
Hollywood Pantages Theatre
“VERY WALKABLE”82 WALK SCORE
WALKABLE TO
15-MINUTE WALK
HOLLYWOOD / VINE METRO RED LINE STATION
3% PROJECTED POPULATION GROWTH OVER NEXT 5 YEARS Source: Spotlight Demographics
1MM SF OF OFFICE SPACE TO BE ADDED OVER NEXT 5 YEARS Source: CoStar
$881,100 MEDIAN HOME VALUE(12.1% YOY INCREASE) Source: Zillow
2.8MM SF OF OFFICE
1.0MM SF OF RETAIL
±355,000 SF (Academy on Vine Development; 2020
Completion)
Source: CoStar
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Minimal Competing Supply and Increasing Barriers to Entry
Despite approximately ±2,000 apartment homes expected to be completed in 2019 and an additional ±750 homes to be completed in 2020, multi-housing development is expected to rapidly decline with no additional homes approved for construction scheduled to deliver after 2020. Seemingly never ending construction cost increases (7.6% in Los Angeles in 2018, the highest of any MSA), alongside new and recently raised municipal fees are increasing the barriers to entry in this highly desirable submarket, insulating the current inventory from future over-supply. The City of Los Angeles has implemented restrictive affordable housing measures and development fees that have dampened planned multi-housing construction throughout Los Angeles. Measure “JJJ”, Linkage Fees, and increased Quimby Fees are all cost-increasing measures that have created a challenging local economic climate for prospective multi-housing developers. Recent Class A builds such as Vues on Gordon will see outsized benefits from these policies.
Apartment Homes Under Construction
0
500
1,000
1,500
2,000
2,500
±2,000 HOMES to be completed
±750 HOMES to be completed
0 HOMES to be completed
2019 2020 2021Source: CoStar10
HFF
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Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
CHARLES HALLADAYSenior Managing Director 415.276.6085 [email protected] CA License #01756300
STEVEN PASKOVERDirector 310.407.2134 [email protected] CA License #01936051
ALEXANDRA CANIGLIADirector 310.407.2122 [email protected] CA License #01994543
NICK LAVINAssociate 310.407.2125 [email protected] CA License #02081747
BLAKE A. ROGERSManaging Director 310.407.2138 [email protected] CA License #01866591
Financing ContactsInvestment Contacts
HFFLP.COM