DEVELOPMENT OR OWNER USER OPPORTUNITY - PRIME SIGNALIZED PACIFIC COAST HIGHWAY CORNER. BLOCKS FROM THE BEACH.

O F F E R I N G M E M O R A N D U M

SOUTH PACIFIC COAST HWY

R e d o n d o B e a c h , C A 9 0 2 7 7

FOR SALE OR LEASE

P L A Y V I D E O

AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times, different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”) and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arm’s length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENTYour receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMERThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property”s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner. PMStudio_September2018

TABLE OF CONTENTS

Executive Summary

Property Description

Market Overview

Demographics

Financial Analysis

I.

II.

III.

V.

VI.

EXECUTIVE SUMMARY

PROPERTYDESCRIPTION

FINANCIALANALYSIS

DEMOGRAPHICSMARKETOVERVIEW

4

• Rare Pacific Coast Highway Signalized Corner Lot

• Ground Lease or Fully Entitled Development Opportunity

• Fully Entitled Two Restaurant Unit Building

• Blocks From the Beach

• Located on The South Bay’s Major Retail Corridor

• Affluent Dense Infill

INVESTMENT HIGHLIGHTS

South Pacific Coast Hwy

Ave

nu

e C

Avenue B

Avenue D

This exceptional fully entitled development or owner user opportunity is being offered exclusively by CBRE. The property sits on a signalized corner with great visibility and easy ingress and egress just blocks from the Pacific Ocean on the South Bay’s main retail corridor.

The property is being offered fully entitled as a two-unit restaurant building. The seller will also consider a ground lease. Current restaurant plans include 5,000 square feet of indoor restaurant space with 4,000 square feet of patio space on an 9,784 square foot lot. There are a planned twenty (20) parking stalls.

The property is located on Pacific Coast Highway. Pacific Coast Highway is the main retail corridor through the beach cities spanning the entire length of Redondo Beach, Hermosa Beach, Manhattan Beach, and El Segundo running parallel to the Pacific Ocean. Daily car count ranges from 37,000 - 80,000+ on Pacific Coast Highway in the Beach Cities. Average household income within 3 miles exceeds $122,000 with a population over 162,000 people.

INVESTMENT SUMMARY

Address 1032 Pacific Coast Highway

City/State/Zip Redondo Beach, CA 90277

Sale Price $2,500,000

Land Area 9,784

Ownership Fee Simple

Story 2 Story

Zoning RBC-2-PD

Built/Renovated 2019 (projected)

5

EXECUTIVE SUMMARY

PROPERTYDESCRIPTION

MARKETOVERVIEW

FINANCIALANALYSIS

DEMOGRAPHICS

6

AERIAL MAP

EXECUTIVE SUMMARY

PROPERTYDESCRIPTION

MARKETOVERVIEW

FINANCIALANALYSIS

DEMOGRAPHICS

So

uth

Pa

cifi

c C

oa

st H

wy

Avenue C

Avenue B

Avenue D

Hermosa Beach

Redondo Beach Pier

Manhattan Beach West TorranceEl Segundo

Del Amo Fashion Center

Redondo Beach is one of the three Beach Cities located in Los Angeles County, California, United States. The population was 66,748 at the 2010 census, up from 63,261 at the 2000 census. The city is located in the South Bay region of the greater Los Angeles area.

The city’s territory has an unusual shape including an area along the beach (South Redondo Beach) and another strip inland from Manhattan Beach and Hermosa Beach (North Redondo Beach). The primary attractions include Municipal Pier and the sandy beach, popular with tourists and a variety of sports enthusiasts.

A revitalized downtown area affectionately termed “Riviera Village” (named so after the Hollywood Riviera, the area in which it is located) provides locals an opportunity to eat, shop and commune in a quiet atmosphere. Since 2004 several new or newly renovated restaurants have made a positive impact on local options for an on-the-town experience. Downtown also supports a number of independent boutiques and shops specializing in clothing and fashion, as well as at least three wine-tasting galleries.

The Marina, Harbor and Pier complexes are large, planned centers of activity that host Korean seafood restaurants, touristy bars, smaller shops and a games arcade. The pier is a common spot for anglers to cast for a local catch; many residents of inland Los Angeles drive to Redondo Beach to take advantage of the long and unique shape of this pier. The adjacent Marina, located just north of the Pier, is home to another half-dozen restaurants, a seafood shop, and a pub with almost 100 beers on tap.

Source: Wikipedia (https://en.wikipedia.org/wiki/Redondo_Beach,_California)

REDONDO BEACH, CALIFORNIA

7

EXECUTIVE SUMMARY

PROPERTYDESCRIPTION

MARKETOVERVIEW

FINANCIALANALYSIS

DEMOGRAPHICS

8

DEMOGRAPHICS REDONDO BEACH, CA

POPULATION

2016 Population 67,280

2021 Population 70,226

2010 Population 64,327

2000 Population 60,831

Percent Pop Change: 2010 to 2016 4.6%

Percent Pop Change: 2016 to 2021 4.4%

AGE

2016 Median Age 41.6

2016 Average Age 40.5

HOUSEHOLDS

2016 Households 29,506

2021 Households 30,923

2010 Households 28,073

2000 Households 27,582

Percent HH Change: 2010 to 2016 5.1%

Percent HH Change: 2016 to 2021 4.8%

Average Household Size 2.3

INCOME

2016 Median Household Income $97,266

2016 Average Household Income $127,701

2016 Per Capita Income $56,004

HOUSING UNITS

2016 Housing Units 31,102

2016 Occupied Housing Units 29,506

2016 Vacant Housing Units 1,596

2016 Owner-Occupied Housing Units 15,086

2016 Renter-Occupied Housing Units 14,420

EDUCATION

2016 Population Age 25 and Over 50,039

High School thru Associates 4,068 8.1%

Bachelor's Degree 17,763 35.5%

Graduate Degree 7,962 15.9%

EXECUTIVE SUMMARY

PROPERTYDESCRIPTION

MARKETOVERVIEW

2016 POPULATION AVERAGE HH INCOME TOTAL BUSINESSES

67,280 $127,701 3,619

FINANCIALANALYSIS

DEMOGRAPHICS

DEMOGRAPHICS REDONDO BEACH 1 Mile 3 Miles 5 Miles

POPULATION

2016 Population 24,661 162,344 389,110

2021 Population 25,669 169,049 404,106

2010 Population 23,655 155,841 374,886

2000 Population 22,939 147,942 359,192

Percent Pop Change: 2010 to 2015 4.3% 4.2% 3.8%

Percent Pop Change: 2015 to 2020 4.1% 4.1% 3.9%

AGE

2016 Median Age 44.7 42.7 41.7

2016 Average Age 43.4 41.7 40.8

HOUSEHOLDS

2016 Households 11,949 68,336 150,246

2021 Households 12,562 71,156 156,047

2010 Households 11,301 65,728 144,959

2000 Households 11,424 64,707 142,423

Percent HH Change: 2010 to 2016 5.7% 4.0% 3.7%

Percent HH Change: 2016 to 2021 5.1% 4.1% 3.9%

Average Household Size 2.2 2.4 2.6

INCOME

2023 Median Household Income $91,034 $91,650 $86,172

2018 Per Capita Income $123,809 $122,193 $120,786

2023 Per Capita Income $59,991 $51,435 $46,639

HOUSING UNITS

2016 Housing Units 12,770 71,760 157,474

2016 Occupied Housing Units 11,949 68,336 150,246

2016 Vacant Housing Units 820 3,424 7,228

2016 Owner-Occupied Housing Units 5,717 35,852 84,529

2016 Renter-Occupied Housing Units 6,233 32,484 65,717

EDUCATION

2016 Population Age 25 and Over 19,334 119,621 276,222

High School thru Associates 1,671 8.6% 9,693 8.1% 21,960 8.0%

Bachelor's Degree 6,879 35.6% 43,384 36.3% 86,958 31.5%

Graduate Degree 3,395 17.6% 16,879 14.1% 35,015 12.7%

PLACE OF WORK

Total Businesses 1,625 10,841 23,176

Daytime Employment (Total Employees) 9,414 88,314 204,667

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EXECUTIVE SUMMARY

PROPERTYDESCRIPTION

MARKETOVERVIEW

FINANCIALANALYSIS

DEMOGRAPHICS

ANNUALIZED OPERATING DATA

BASE RENT PRO-FORMA

Occupied Space $-

Vacant Space $360,000

COMBINED GROSS RENT $360,000EXPENSES

Taxes $31,250

Insurance $1,500

CAM $2,500

Total NNN Expenses $35,250 10.0%

Vacancy Factor $10,800 3%

Management $18,000 5%

NNN Reimbursement $35,250 100%

YEAR 1 NOI $331,200

FINANCIAL ANALYSIS SUMMARY

SALES SCENARIO

Location 1032 Pacific Coast Hwy Redondo Beach, CA 90277

Price $2,500,000

Lot Size 9,784

Projected Leaseable Square Foot 5,000

Type of Ownership Fee Simple

Projected Construction Costs $2,159,000

GROUND LEASE SCENARIO

Asking Ground Rent (Annual) $150,000

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EXECUTIVE SUMMARY

PROPERTYDESCRIPTION

MARKETOVERVIEW

FINANCIALANALYSIS

DEMOGRAPHICS

TENANT SUMMARY PRO-FORMA

UNIT TENANT GLA % OF GLA ANNUAL RENT RENT/SF LEASE TYPE

1 Retail 2,000 40% $180,000 $90.00 NNN

2 Retail 3,000 66% $180,000 $60.00 NNN

Total Vacant 5,000 100% $360,000

Total Occupied

Total 5,000 100% $360,000

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EXECUTIVE SUMMARY

PROPERTYDESCRIPTION

MARKETOVERVIEW

FINANCIALANALYSIS

DEMOGRAPHICS

So

uth

Pa

cifi

c C

oa

st H

wy

Avenue C

Avenue D

Avenue B

Malago Cove

Torrance Beach

Miramar Park

Palos Verdes Estates

Valmonte

Seaside

CONTACT: DEBT

W. SIMON MATTOX

Vice President, MBA+1 310 363 4809 Simon.Mattox@cbre.comLic. 01732008

SHAHIN ADELI

Vice President +1 310 550 2576 Shahin.Adeli@cbre.com Lic. 01886255

© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. PMStudio_October2018

SOUTH PACIFIC COAST HWY

R e d o n d o B e a c h , C A 9 0 2 7 7