9570 PICO BOULEVARD - f.tlcollect.comf.tlcollect.com/fr2/015/66591/9570PicoBlvd_OM_v07JJ.compressed.pdf · 9570 PICO LOS ANGELES, CA 3 EXECUTIVE SUMMARY $13,000,000 ($595/SF) CBRE,

21,866 SQ. FT. CREATIVE OFFICE BUILDINGSALES OFFERING MEMORANDUM

OWNER-USER OR INVESTOR OPPORTUNITY7,309 SF DEVELOPMENT PAD WITH BUILDING

JOEL D. FRANKSenior Vice PresidentLic. 0967530T +1 310 [email protected]

ALEX BERGESONAssociateLic. 01934076T +1 310 [email protected]

CBRE Inc. | 1840 Century Park East, Suite 900 | Los Angeles, CA 90067 | www.cbre.com/beverlyhills

FOR MORE INFORMATION PLEASE CONTACT:

9570 PICO BOULEVARD & 1412 EDRIS DRIVELOS ANGELES | CALIFORNIA (BEVERLY HILLS BORDER)

9570 PICO | LOS ANGELES, CA

3

EXECUTIVE SUMMARY$13,000,000 ($595/SF)CBRE, Inc. is pleased to present the opportunity to acquire the 100% fee simple interest in 9570 Pico Boulevard (the “Property”); a highly desirable Beverly Hills adjacent creative owner/user or investment property plus a land parcel for future development.

&

HISTORIC HOME

OF SAMUEL GOLDWYN FILMS

STEVEN EHILICH, AIA DESIGN

PREMIER LOCATION

13,773

7,309

SQ. FT. OF HIGHLY IMPROVED, MOVE-IN-READY CREATIVE SPACE

SQ. FT. DEVELOPMENT SITE

BEVERLY HILLS ADJACENT

BEVERLY HILLS

CENTURY CITY

7,309 SF lot with 34 spaces


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OWNER-USER OPPORTUNITY• 2 full floors (2nd & 3rd) totaling 13,773 SF of creative

space are currently available

• Features creative, open plan environment featuring raw brick, glass and steel.

• Open floor plan and expansive windowline provide ample natural light

• Unique opportunity to own a historic treasure

• Ultimately gain possession of 6,930 RSF 4th floor (Samuel Goldwyn Films) for owner use or re-lease at premium rent


7

INVESTOR OPPORTUNITYSAMUEL GOLDWYN FILMSLEASEBACK (ONE YEAR PLUS TWO, ONE YEAR OPTIONS)

Samuel Goldwyn Films (formerly The Samuel Goldwyn Company) is an American independent film company founded by Samuel Goldwyn, Jr., the son of the Hollywood business magnate/mogul, Samuel Goldwyn.

The company has produced and distributed countless films including: The Secret Life of Walter Mitty, Master and Commander: The Far Side of the World, The Whistleblower, The Preachers Wife, Mao’s Last Dance, The Last of Robin Hood, Super Size Me, The Squid and the Whale, A Year in Champagne, and many, many more.

• $13,000,000 ($595/SF)

• $581,628 pro forma NOI

• 6,930 SF sale-leaseback from Samuel Goldwyn Films

• Strong upside through lease-up in West LA’s burgeoning technology/media, and entertainment sectors


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DEVELOPMENT OPPORTUNITY• 1412 Edris Drive, Los Angeles, CA

• 7,309 SF (0.17 ac)

• Zoned LAR3 (Multiple Residence–Apartment Houses)

• APN: 4306-002-012

• Long term intrinsic value or immediate upside potential

• Currently serving as 34 stall parking lot

CURRENT BUILDING

DEVELOPMENT PARCEL

Rear Alley

PICO BOULEVARD


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HOLLYWOOD HILLS

MR.C HOTEL

BEVERLY HILLS TRIANGLE

SOUTH BEVERLY DRIVE SHOPPING DISTRICT

RALPHS ANCHORED RETAIL VENTER

9570 PICO

1412 EDRIS


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PROPERTY SPECIFICATIONSAddress 9570 Pico Blvd &1412 Edris Dr, Los Angeles

Location SEC of W Pico Blvd. & Edris Dr.

Building Type Creative Office

Year Built/Renovated 1960/1999 & 2015

Construction Steel and Structural Brick

Net Rentable Area (RSF) 21,866

Building Parcel 6,996 SF (0.16 ac)

Development Parcel 7,309 SF (0.17 ac)

Stories 4 with Subterranean Parking

Elevator One, 4-Stop hydraulic

Parking Spaces 50 Spaces (2.5/1,000)

Current Vacancy (RSF) 13,773 (2nd & 3rd Floors)

APN(s) 4306-002-022 (Building) & 4306-002-012 (Parking)

Zoning LAC4 (Building) & LAR3 (Parking)

Foundation Concrete slab with vertical, poured concrete support. Lightweight concrete sub-floors

Wall Support Structural Brick

Curtain Wall Tempered plate glass and wood frame & stucco along north & east walls

Roofing Four-ply built up flat roof over plywood sheathing, steel "I" beams & vertical concrete columns

HVAC Forced air heating and central air conditioning from roof mounted units

Stairwells Two, steel framing with concrete steps

Electrical 400 amp, 240 volt, 3 phase service

9570 Pico was re-designed by award winning architect Steven Ehrilich in 1999. Honored with the AIA National Firm Award in 2015, Ehrlich Architects is a versatile practice that has earned an international reputation for design excellence and an exemplary professional culture. Founded in 1979 as a tiny residential studio, the Los Angeles-based firm is a 40 member team that has mastered building types ranging in scale from houses to courthouses, including libraries, university centers, corporate and government facilities. Ehrlich Architects has been recognized with more than 150 awards including nine national AIA awards, and the title of AIA California Council Firm of the Year in 2003.

STEVEN EHRLICH ARCHITECTS


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BUILDING SUMMARY

1st FLOOR 2ND FLOOR

3RD FLOOR 4th FLOOR

Subterranean 16 Parking Spaces

Floor 1 1,163 RSF

Floor 2 6,843 RSF

Floor 3 6,930 RSF

Floor 4 6,930 RSF

Total 21,866 RSF


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Tenant Suite Square FootageCommencement

DateExpiration Date Monthly Rent Increases

Lease Options

Lease Type Use Parking

JV Productions 100 1,163 2014-01-01 2015-12-31 $2,747.58 3% annual None FSG Office 2 spaces

Vacant 200 6,843 n/a n/a $22,239.75 3% annual n/a FSG Office n/a

Vacant 300 6,930 n/a n/a $22,522.50 3% annual n/a FSG Office n/a

Samuel Goldwyn Company 400 6,930 2015-06-01 2016-05-31 $15,592.50 3% annual 2, 1 year FSG Office 8 spaces

Total 21,866 $63,102.33

Rental Income1 $757,228

Parking Income2 $90,000

Total $847,228

Insurance3 $12,100

Elevator Contract3 $2,100

HVAC Contract3 $4,500

Janitorial Services3 $22,000

Landscaping3 $2,500

Security3 $3,200

Trash3 $8,200

Utilities3 $55,000

Property Taxes4 $156,000

Total $265,600

Net Operating Income $581,628

RENT ROLL

2016 INCOME & EXPENSE PROFORMA

Assumptions:1. Based on $3.25/SF Rent for 2nd & 3rd Floors2. Based on $150/stall X 50 Stalls3. Per 2014 Expenses4. $13MM X 1.2% mil rate


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MARKET ANALYSIS | SALES COMPARABLES

1 2125 Arizona Ave, Santa Monica$6,450,000 ($604/SF)2014-11-18

2 8000 Beverly Blvd, West Los Angeles$8,000,000 ($653/SF)2014-10-14

3 121 S Beverly Dr, Beverly Hills$8,500,000 ($1,000)2013-08-30

4 1940 Century Park East, Century City$23,000,000 ($500/SF)2014-04-01

5 11333 Iowa Ave, West Los Angeles$5,195,000 ($655/SF)2014-06-04

6 9599-9601 Jefferson Blvd, Culver City$6,100,000 ($571/SF)2014-07-23

7 2800 W Olympic Blvd, Santa Monica$8,850,000 ($575/SF)2014-06-06

8 1919 Santa Monica Blvd, Santa Monica$26,000,000 ($553/SF)2013-10-09

9 9940-9944 Santa Monica, Beverly Hills$11,500,000 ($860/SF)2013-12-05

10 10309 Santa Monica Blvd, West Los Angeles$7,200,000 ($860/SF)2013-12-05

11 10630 Santa Monica Blvd, West Los Angeles$15,100,000 ($847/SF)2013-07-25

12 9378 Wilshire Blvd, Beverly Hills$29,500,000 ($929/SF)2014-10-31


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MARKET ANALYSIS

• Sales & leasing market for commercial properties in Beverly Hills and adjacent areas has returned to pre-recession peak levels

• Average asking rents in Beverly Hills have reached $4.40/SF, fully serviced

• Average occupancy levels in Beverly Hills have reached 94%

• Asking rents in 9701 Wilshire, 9665 Wilshire, 9601 Wilshire, 9595 Wilshire, 9560 Wilshire go above $6.00/SF, fully serviced

• South Beverly Drive District reaches new highs for occupancies & rents

• Nearby 9911 Pico conversion to residential evidences huge nearby re-investment.

• Pico Boulevard commercial district continues to become more vibrant & pedestrian oriented; Mr. C’s hotel thriving


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Within 1 mi of Property Within 3 mi of Property

Population 35,049 317,442

Households 16,142 149,549

Average Age 42.23 40.59

Median Household Income $73,436 $63,019

2015 Estimated Households

- Income Less than $15,000 (13.1%) (13.5%)

- Income $15,000 - $24,999 (8.1%) (8.3%)

- Income $25,000 - $34,999 (5.5%) (7.9%)

- Income $35,000 - $49,999 (8.1%) (11.3%)

- Income $50,000 - $74,999 (16.3%) (16.4%)

- Income $75,000 - $99,999 (11.7%) (11.7%)

- Income $100,000 - $124,999 (9.3%) (8.5%)

- Income $125,000 - $149,999 (5.6%) (5.2%)

- Income $150,000 - $199,999 (6.4%) (6.4%)

- Income $200,000 - $249,999 (3.2%) (2.8%)

- Income $250,000 - $499,999 (7.6%) (5.3%)

- Income Over $500,000 (5.3%) (2.8%)

Est. Population Growth 2015-2020 3.81% 3.81%

Est. Household Growth 2015-2020 3.84% 4.00%

DEMOGRAPHICS

LOCATION OVERVIEW• Dense Residential District with Retail Support

• Next to Ralph’s Center and countless amenities

• Walking distance to Pico Boulevard Shopping District

• Directly Adjacent to Beverly Hills

• Directly Adjacent to Century City

• Excellent street parking

• Transit line bus service


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LOCATION OVERVIEW | RETAIL AMENITIES MAP

CRAZY FISH

PAT’S RESTAURANT

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17CBRE Inc. | 1840 Century Park East, Suite 900 | Los Angeles, CA 90067 | www.cbre.com/beverlyhills

LOS ANGELES | CALIFORNIA

JOEL D. FRANKSenior Vice PresidentLic. 0967530T +1 310 [email protected]

ALEX BERGESONAssociateLic. 01934076T +1 310 [email protected]

FOR MORE INFORMATION PLEASE CONTACT:

21,866 SQ. FT. CREATIVE OFFICE BUILDING

PLUS 7,309 SQ. FT. RESIDENTIAL PARCEL

9570 PICO BOULEVARD & 1412 EDRIS DRIVE

Documents

9570 PICO BOULEVARD - f.tlcollect.comf.tlcollect.com/fr2/015/66591/9570PicoBlvd_OM_v07JJ.compressed.pdf · 9570 PICO LOS ANGELES, CA 3 EXECUTIVE SUMMARY $13,000,000 ($595/SF) CBRE,