O F F E R I N G M E M O R A N D U M718 W ANAHEIM STREET, LONG BEACH, CA
NON-ENDORSEMENT NOTICE
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included for the purpose of providing tenant lessee information about this listing to prospective customers.
Marcus & Millichap is not aff iliated with, sponsored by, or endorsed by any commercial tenant or lessee identif ied in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply aff iliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its aff iliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for
the purpose of providing tenant lessee information about this listing to prospective customers.
SPECIAL COVID-19 NOTICE
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting f rom the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, f inancial, and accounting matters, and for questions involving the property’s physical condition or f inancial outlook. Projections and pro forma f inancial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely
solely on their own projections, analyses, and decision-making.
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TABLE OF CONTENTS
SECTION 01Investment Overview // Pg. 6
SECTION 02Market Comparables // Pg. 20
SECTION 03Market Overview // Pg. 26
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S E C T I O N O N EINVESTMENT OVERVIEW
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INVESTMENT OVERVIEWMarcus and Millichap REIS is pleased to present a 718 West Anaheim Street in the City of Long Beach, California located on the Southwest corner of West Anaheim Street and Oregon Avenue.
The property is zoned (LBIG) and located near the Ports of Long Beach and Los Angeles as well as the Interstate (710), (105) and (405) Freeways.
The subject property is an approximately 11,900 square foot highly visible light industrial building located on approximately 17,214 square feet of land area. Currently, the f ront portion of the property is utilized as creative off ice space totaling approximately 4,141 square feet of area including a mezzanine area of approximately 1,264 square feet. The rear portion of the building is currently used as warehouse and storage facilities containing approximately 7,759 square feet including approximately 2,619 square feet of mezzanine area.
The Building was built in 1948 and has a storied past as the original headquarters of West Coast Choppers and the f ilming location of Monster Garage.
This offering is an excellent redevelopment opportunity as a mixed-use project with possible applications including retail, showroom, gallery, restaurants or a brewery/distillery. Alternatively, the subject property would be a great Off ice/Industrial/Warehouse - Owner/User Opportunity.
PROPERTY HIGHLIGHTSExcellent Redevelopment and/or Owner/User Opportunity
Located in the California Opportunity Zone
Highly Visible Signalized Intersection
Excellent Street Frontage on West Anaheim Street and Oregon Street
Port-Adjacent and Easy Access to Interstate Freeways
Vehicular Traff ic: + 32,000 per day
ACT I V E S L I D E S H OW & V I R T UA L TO U RCLICK HERE TO VIEW
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Interior Photos of Property
Creative Open Off ice Space
Ground Level and Mezzanine Warehouse Area Mezzanine Warehouse Area
Executive Off ice
Ground Level Warehouse Area
Executive Conference Room
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Selling Price $3,000,0000
Price Per Square Foot $252.00
APN# 7271-005004
Building Square Footage 11,900 +/- SF
Land Area 17,214 +/- SF
Maximum Exposed Ceiling Height 17 +/- Feet
Parking Spaces including Enclosed/Secured Yard Area: 15 +/- Spaces
Electrical Power 400 AMP 3 Phase
Additional DetailsCreative Office Space: +/- 4,141 SF
Industrial Warehouse/Storage Space: 7,759 SFHydraulic Lift to Second Level Warehouse Mezzanine Area
PROPERTY DETAILS PROPERTY OUTLINE
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SITE PLAN SITE PLAN
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POTENTIAL FLOOR PLAN POTENTIAL UNITS
Unit Number Square Footage
1Ground
MezzanineTotal
2,877 SF1,264 SF4,141 SF
2Ground
MezzanineTotal
1,396 SF538 SF
1,934 SF
3 GroundTotal
1,382 SF1,382 SF
4Ground
MezzanineTotal
1,438 SF817 SF
2,255 SF
5 GroundTotal
2,188 SF2,188 SF
Total 11,900 SF
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POTENTIAL RENOVATION ELEVATIONS POTENTIAL RENOVATION ELEVATIONS
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S E C T I O N T W OMARKET COMPARABLES
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SALES COMPARABLES
718 W Anaheim Street
1300 - 1310 Long Beach Blvd
1810 E Anaheim Street
444 E Anaheim Street
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123
SALES COMPARABLES
Property Sales Price
Close of Escrow
Price PSF
Year Built
718 W Anaheim Street, Long Beach, CA 90813 $3,000,000 TBD $252.10 1948
1300 - 1310 Long Beach Blvd, Long Beach, CA 90813 $1,890,000 5/24/2019 $252.00 1926
1810 E Anaheim Street, Long Beach, CA 90813 $1,500,000 -- $297.03 1931
444 E Anaheim Street, Long Beach, CA 90813 $2,594,000 On-Market $225.00 1938
Average $1,994,667 -- $258.00 --
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SALES COMPARABLES
718 W Anaheim Street | Long Beach, CA 90813
Offering Price $3,000,000
Price per SF $252.10
Year Built 1948
1300 - 1310 Long Beach Blvd | Long Beach, CA 90813
Sold Price $1,890,000
Price per SF $252.00
Year Built 1926
Close of Escrow 5/24/2019
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SALES COMPARABLES
3
1300 - 1310 Long Beach Blvd | Long Beach, CA 90813
Sold Price $1,500,000
Price per SF $297.03
Year Built 1931
Close of Escrow --
444 E Anaheim Street | Long Beach, CA 90813
Sold Price $2,594,000
Price per SF $225.00
Year Built 1938
Close of Escrow On-Market
A former Tire Store redevelopment into a multi-Tenant Retail Pad Building. Highly Visible Signalized Intersection. Currently Vacant.
A vacant restaurant building. A former Automotive Repair Shop.N o t e s N o t e s N o t e s
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S E C T I O N T H R E EMARKET OVERVIEW
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D O W N T O W N L O N G B E A C H A R E AHistorically known for its status as the preeminent harbor city on the West Coast, Long Beach continues to gain notoriety as an exciting and vibrant waterf ront destination. Long Beach is centrally located between Los Angeles and Orange County, making it an ideal location for residents to access both markets, and the city is connected to the region via multiple modes of transportation, including the Metro Blue Line connecting Long Beach to Downtown Los Angeles as well as Southern California’s vast f reeway network. The seventh largest city in California with a population of over 490,000, Long Beach is home to a diverse and growing labor pool and offers the amenities of a large city within a clean and safe beachf ront community. Long Beach’s world-class port, prestigious university, unique business market, and unmatched local attractions have made it one of Southern California’s most desirable and versatile markets.
D E S I R A B L E C O A S T A L C O M M U N I T YLong Beach offers high quality of life attributes that attract recent college graduates, young couples, affluent professionals, and corporate executives seeking coastal living proximate to leading corporate concentrations. The city’s population has increased 4% since 2010, and it is projected to increase an additional 3.4% in the next f ive years. Individuals and families seeking a dynamic urban environment are increasingly choosing downtown Long Beach. Downtown Long Beach offers abundant resident-serving amenities and services; is one of the most walkable and bike-f riendly neighborhoods in Southern California; enjoys convenient public transit (downtown Long Beach is the southern terminus for the Metro Blue Line light rail corridor connection to downtown Los Angeles) and f reeway accessibility; and offers easy beach access.
Market Overview
65kInternational City Bank Marathon
180kLong Beach Grand Prix
4.3MSF of Total Office Inventory
37kTotal Number of Students in Area
10kWorkers in Area - Average Age of 37
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T H E P O R T O F L O N G B E A C H
The Port of Long Beach, also known as the Harbor Department of the City of Long Beach, is the second-busiest container port in the United States, after the Port of Los Angeles, which it adjoins. Acting as a major gateway for US–Asian trade, the port occupies 3,200 acres of land with 25 miles of waterf ront in the city of Long Beach, California. The Port of Long Beach is located less than two miles southwest of Downtown Long Beach and approximately 25 miles south of Downtown Los Angeles. The seaport generates approximately US$100 billion in trade and employs more than 316,000 people in
Southern California.
SECOND BUSIEST PORT IN THE UNITED STATES
Each year the port handles over 6.8 million 20-foot container units (TEUs).
1.4 million jobs throughout the U.S. are related to trade generated by the Port of Long Beach.
The top imports are crude oil, electronics, plastics, furniture and clothing.
The Port of Long Beach provides about 370,000 jobs and generates close to $5.6 billion a year in state and local tax revenues.
The port has 80 available berths and 10 piers.
T H E P O R T O F L O N G B E A C H F A C T S & S T A T S
The Port Los Angeles & The Port of Long Beach Combine to Make the
Port in the United States
BUSIEST
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L O S A N G E L E S M E T R O A R E A
Moderate increase in vacancy is unconcerning as solid demand drivers persist. Entering this year, industrial vacancy sat at 2.1 percent in Los Angeles County, the lowest rate among major U.S. metros. While net absorption has softened slightly during the f irst three quarters of 2019, the result of limited available space, the presence of the nation’s largest manufacturing sector and busiest ports of entry maintains overall demand for industrial product, holding vacancy below 3 percent in most submarkets this past third quarter. Expanding third-party logistics companies and manufacturing f irms establishing a local presence are partially to credit as these groups accounted for the largest leases so far this year. Solid demand stemming f rom company growth coupled with a subdued volume of supply additions this year will ensure that industrial fundamentals remain strong in the metro moving forward. Of the 3.7 million square feet slated for completion this year, two-thirds are located in either the San Gabriel Valley or South Bay, locales where speculative space should be absorbed in a relatively short time f rame.
Assets priced below the metro’s average receive robust investor interest. Tight conditions throughout the metro are elevating rents and maintaining investor demand, supporting a double-digit increase in asset values over the past 12 months. Amid the spike in pricing, deal flow remains distributed throughout the county. Central Los Angeles and the eastern San Fernando Valley registered the largest number of recent closings, primarily Class C warehouses and manufacturing trades at average price points. While these locales are epicenters of transaction activity, submarkets where asset values routinely fall below $200 per square foot are highly targeted by investors. In Commerce, high-3 to 4 percent cap rates are obtainable for older warehouses, while a mix of Class B and C manufacturing facilities are closing in nearby Santa Fe Springs. Out-of-state capital has been recently active in Carson/Rancho Dominguez acquiring Class B warehouses at a mid-4 percent average return.
Available Space Remains Scarce, Generating Stout Investor Demand for Assets Within Industrial Hubs
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L O N G B E A C H A B U R G E O N I N G C O R E M A R K E T
Long Beach’s central location and proximity to a diverse labor pool have made the city a logical choice for many California and international businesses. The city is anchored by two world-class ports and a modernized airport, and offers numerous amenities and a well-developed inf rastructure including quality off ice and commercial space, public transit options, and f reeway accessibility. Downtown Long Beach acts as the city’s economic and cultural center and is home to over 1,700 businesses, employing approximately 44,000 people. The city’s economy is well diversif ied, with no single employment
sector accounting for a majority of the regional workforce.
Major Employers Include:
STRONG UNDERLYING FUNDAMENTALS WILL DRIVE OPERATIONS & GROWTH
The City of Long Beach The California State University BRAGG Companies Apparel EPSON
MemorialCare Health System BOEING Verizon Molina HealthCare
Over $2BInvested in real
estate transactions & new development projects since 2013
Port of Long BeachOne of the largest ports in the world
2,000Residential units
built within the last 10 years
344k SFof retail &
entertainmentspace
Over 100Restaurants in
DTLB
$6.5MInvested into the
Pine Avenue ref resh project
1.3M SFOf ground retail
space
$114KDTLB has many wealthy workers
who earn an average income of $114k
Downtown Long Beach is home to the highest employment densities in the city, with over
40,000 jobs.
By the numbers:
1,700 Businesses Operating in DTLB
154 Net New Businesses in 2016
17% Population Growth Since 2010
D O W N T O W N E C O N O M I CD E V E L O P M E N T
D O W N T O W N P L A NApproved in January 2012, the Downtown Plan is the updated plan for land use, zoning, and planned development districts in Downtown Long Beach and serves as the land use and design guideline for all future development in the project area. The plan reduces procedural obstacles for development and focuses on growth and organic expansion. Full implementation of the Downtown Plan could increase the density and existing downtown land uses over a 25-year time period by
allowing up to:
1.5 million square feet of new off ice, civic, cultural, and similar uses
384,000 square feet of new retail
96,000 square feet of restaurants
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RECENTLY COMPLETED DTLB MAJOR MULTI-FAMILY DEVELOPMENT PROJECTS
Seven Story +/- 49,000 sq. ft. Mixed-Use Project
49 Luxury Apartments with ground level retail/restaurant space
Completed 4th Quarter; 2019
THE LINDEN | 434 E 4TH STREET
Seven-story, mixed-use project
136 condominiums w/pedestrian-oriented retail/restaurant space
Completed July; 2020
THE ALAMITOS | 101 ALAMITOS AVENUE
Three Story Residential Townhome Project
40 Luxury Townhomes ranging from 1,242-1,867 sq. ft. over garages
Completed Spring; 2019
HUXTON | 227 ELM AVENUE
Five Story +/- 182,000 sq. ft. Multi-Family Project
102 Luxury Apartments
Completed 1st Quarter; 2020
THE CREST | 207 SEASIDE WAY
Seven Story +/- 160,000 sq. ft. Multi-Family Project
216 Luxury Apartments
Completed Summer Quarter; 2019
OCEAN AIRE | 150 W OCEAN BLVD
Seven Story +/- 170,000 sq. ft. Mixed-Use Project
163 Luxury Apartments with ground level retail/restaurant space
Completed 2nd Quarter; 2020
THE PACIFIC | 230 W 3RD STREET
Five Story +/- 64,000 sq. ft. Mixed-Use Project
216 Luxury Apartments with ground level retail/restaurant space
Completed 2nd Quarter; 2020
442 RESIDENCES | 442 W OCEAN BLVD
Seven Story 250,000 sq. ft. Mixed-Use Project
222 Luxury Apartments with ground level retail/restaurant space
Completed Summer; 2019
AMLI PARK BROADWAY | 245 W BROADWAY
ACTIVE, APPROVED & PROPOSED MULTI-FAMILY DEVELOPMENT PROJECTS
New five-story, mixed-use development
82 residential units above 4,091 square feet of commercial space
135 LINDEN AVENUE
New seven-story, multi- family development
77-unit market rate apartment complex
320 ALAMITOS AVENUE
Proposed two-building, mixed-use project, including a 23-story tower and seven-story
mid-rise
400 residential units, including 14 affordable units, w/ creative open space & retail space
BROADWAY BLOCK | 200-256 LONG BEACH BLVD
Proposed eight-story, mixed-used development
218 residential units
10,000 square feet of retail space
THE ASTER | 125 LONG BEACH BLVD
Approved 35-story, 315-residential units
Retail/restaurant space on the ground level
Groundbreaking late 2018
SHORELINE GATEWAY | 777 E OCEAN BLVD
Proposed mixed-used development
172 residential units
10,000 square feet of retail space
INKWELL | 127-135 BROADWAY
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FUTURE DTLB MAJOR COMMERCIAL DEVELOPMENT PROJECTS
Proposed 30-Story Hotel w/ 429 Rooms
50,000-Square Feet of Banquet, Retail & Restaurant Space
100 E OCEAN BOULEVARD
Proposed Mixed-Use in Six Buildings of Varying Heights From Six-Stories to 40-Stories w/694
Residential Units
77-unit market rate apartment complex
WORLD TRADE CENTER | 600 W BROADWAY
Proposed Mixed-Use, High Rise Development
23-Story Tower, 366 Residential Units w/ Retail & Commercial Space
Former Successor Agency-Owned Property
3RD & PACIFIC | 131 W 3RD STREET
65 Acres of Waterfront Land Surrounding the Iconic Queen Mary
$250 Million Entertainment Destination & Tourist Attraction
2,400-Foot Long Boardwalk w/ Cafes, Bars & Eclectic Retail Shops
200-Room Hotel & a Grand Outdoor Amphitheater
QUEEN MARY ISLAND | 1126 QUEENS HWY
Proposed eight-story, mixed-used development
218 residential units
10,000 square feet of retail space
LONG BEACH CIVIC CENTER | 411-415 W OCEAN BLVD
D E M O G R A P H I CS N A P S H O T
Population
1 Mile 3 Miles 5 Miles
2024 Projection
Total Population 53,002 252,458 469,497
2019 Estimate
Total Population 52,113 248,367 461,471
2010 Census
Total Population 50,033 238,429 444,171
2000 Census
Total Population 52,146 238,429 440,874
Current Daytime Population
2019 Estimate 42,778 218,887 418,361
Population Profile
1 Mile 3 Miles 5 Miles
Population By Age
2019 Estimate Total Population 52,113 248,367 461,471
Under 20 30.90% 26.47% 25.67%
20 to 34 Years 26.78% 26.91% 25.48%
35 to 39 Years 7.77% 7.54% 7.21%
40 to 49 Years 13.30% 13.54% 13.46%
50 to 64 Years 14.26% 16.35% 17.30%
Age 65+ 7.00% 9.21% 10.87%
Median Age 30.76 33.05 34.27
Households
1 Mile 3 Miles 5 Miles
2024 Projection
Total Population 17,450 88,727 164,586
2019 Estimate
Total Population 17,034 86,645 161,041
Average Household Size 2.99 2.81 2.81
2010 Census
Total Population 16,097 81,699 152,577
2000 Census
Total Households 16,057 80,095 150,153
Households by Income
1 Mile 3 Miles 5 Miles
2019 Estimate
$200,000 or More 1.95% 3.28% 5.86%
$150,000 - $199,000 2.38% 4.00% 5.58%
$100,000 - $149,000 7.31% 11.00% 13.52%
$75,000 - $99,999 9.03% 12.18% 13.05%
$50,000 - $74,999 17.93% 18.91% 18.00%
$35,000 - $49,999 15.14% 13.61% 12.60%
$25,000 - $34,999 12.86% 10.93% 9.24%
$15,000 - $24,999 15.35% 12.17% 10.27%
Under $15,000 18.04% 13.92% 11.88%
Average Household Income $54,242 $68,531 $83,789
Median Household Income $38,637 $49,317 $57,688
Per Capita Income $18,192 $24,241 $29,574
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7 1 8 W A N A H E I M S T R E E T
EXCLUSIVELY LISTED BY
KEVIN J. KINGSenior Managing Director Investments
Long Beach Off iceTel: (562) 257 - 1246
[email protected]: CA 01158184
MARTIN PORTERDirector National Retail Group
Long Beach Off iceTel: (562) 257 - 1233
[email protected]: CA 00861399