A 16,434 SQUARE FOOT OFFICE BUILDING LOCATED IN THE ... · billion Los Angeles Football Stadium scheduled to open in Summer 2020, plus 3,000 new residential units, 620,000 square

2311 W El Segundo blvd | hawthorne, ca 90250 | 1

SOUTHERN CALIFORNIA'S PREMIER SALES TEAM

A 16,434 SQUARE FOOT OFFICE BUILDING LOCATED IN THE DESIRABLE SOUTH BAY

SUB-MARKET OF HAWTHORNE, CA


TABLE OF CONTENTS

01

04

02

03

PROPERTY OVERVIEW

FINANCIAL ANALYSIS

COMPARABLES ANALYSIS

AREA OVERVIEW

INVESTMENT ADVISORS

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corpora-tion of Marcus & Millichap, its affiliates 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Instagram@brandonmichaelsgroup

Websitewww.brandonmichaelsgroup.com

BRANDON MICHAELSSenior Managing Director of InvestmentsSenior Director, National Retail GroupTel: (818) 212-2794Fax: (818) [email protected]: CA #01434685www.BrandonMichaelsGroup.com

VAUGHN BROWNInvesment AssociateNational Retail GroupTel: (818) 212-2718Fax: (818) [email protected]: CA #01955613www.BrandonMichaelsGroup.com


TEAM MEMBERSSean Brandt Ben BrownsteinNicole CottrellAndrew LeffMatthew NoronaSteven SchechterAustin Sreden

2311 W El Segundo blvd | hawthorne, ca 90250 | 5 4 | property overview • property highlights

01PROPERTYOVERVIEW

5

2311 W El Segundo blvd | hawthorne, ca 90250 | 7 6 | property overview • property highlights6 | 2 3 1 1 W E l S e g u n d o b lv d | h aw t h o r n e , c a 9 0 2 5 0

W. EL SEGUNDO BLVDW. EL SEGUNDO BLVD

DAPHNE AVE

DAPHNE AVE

DOWNTOWN LADOWNTOWN LA

MORNINGSIDEMORNINGSIDEPARKPARK GRAMERCYGRAMERCY

PARKPARK

The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively market for sale 2311 West El Segundo Boulevard, a 16,434 square foot office building located in the South Bay sub-market od Hawthorne, CA. This two-story low-rise office building has been the long-term home of the County of Los Angeles and serves as a mental health center. The County of Los Angeles has successfully operated at this location for thirty-two years since June 21, 1988. Of current, they are occupying the building on a month to month lease. This creates a unique opportunity for an owner-user Buyer looking to occupy the building for their own use. The investment also lends itself to an investor, with the ability to re-structure the current lease with the county or re-position the asset with a new tenant base.

2311 West El Segundo Boulevard is ideally located just east of Crenshaw Boulevard and just West of S. Western Avenue along El Segundo Boulevard, a main east/west thoroughfare through the South Bay. The subject property is easily accessible to multiple major freeways including the Interstate 405 San Diego Freeway, the Interstate 105 California Freeway, and the Interstate 110 Freeway. The subject property is less than 1.5 miles from the Tesla/SpaceX campus, Hawthorne Municipal Airport, and the Metro line Park & Ride, 2.5 miles from the new Los Angeles Football Stadium at Hollywood Park in Inglewood, and minutes from Los Angeles International Airport.

The South Bay is experiencing a commercial real estate renaissance and has been seeing an influx of commercial development over the past number of years, with several new projects slated for construction in the immediate future. Inglewood is one of the hottest submarkets in the country, with a new $4.9 billion Los Angeles Football Stadium scheduled to open in Summer 2020, plus 3,000 new residential units, 620,000 square feet of retail, a 300-room luxury hotel, an artificial lake, and a revamped Casino. El Segundo is the home to Smoky Hollow an eclectic mix of creative office, research and development and light industrial with cafés, art splashed on the walls, bike paths and pedestrian walkways. San Pedro is the home to the San Pedro’s Public Market, Promenade & Town Square, a 400-acre waterfront development that includes a 15,000 square-foot food hall with a variety of vendors serving food, beer, wine, and possibly a full bar. The 40-acre space will also include offices, a promenade, 600 feet of courtesy slips and pedestrian paths, container kitchens surrounded by an outdoor garden, playgrounds and recreation areas, waterfront taxis and cruises and a Town Square that will connect the new development to San Pedro historic downtown district.

A 16,434 SQUARE FOOT OFFICE BUILDING LOCATED IN THE DESIRABLE SOUTH BAY

SUB-MARKET OF HAWTHORNE, CA

VAN NESS AVE

VAN NESS AVE


INVE

STM

ENT

HIG

HLIG

HTS

8 | property overview • property highlights8 | 2 3 1 1 W E l S e g u n d o b lv d | h aw t h o r n e , c a 9 0 2 5 0 2311 W El Segundo blvd | hawthorne, ca 90250 | 9 2 3 1 1 W E l S e g u n d o b lv d | h aw t h o r n e , c a 9 0 2 5 0 | 9

• 16,434 square foot two- story office building with 41 parking spaces in the rear

• 100% Occupied by the County of Los Angeles

• The County of Los Angeles has successfully operated at this location for 22 years

• Month to Month lease creates an excellent opportunity for an Owner-User Buyer

• Direct access to the 405, 105 and 110 freeway and within close proximity to Los Angeles International Airport

• Located within a thriving and revitalizing zone of the South Bay

• Excellent visibility and frontage along El Segundo Boulevard, a main east/west thoroughfare through the South Bay

• Significant development in the surrounding areas


PRO

PERT

Y HI

GHL

IGHT

SPRICE/SF (BUILDING)

$219

PRICE/SF(LAND)$150

CURRENT CAP RATE5.81%

PRICE: $3,600,000

BUILDING SF: 16,434 SF

LAND SF: 24,000 SF

PRICE/SF (BUILDING): $219

PRICE/SF (LAND): $150

CURRENT CAP RATE: 5.81%

PARKING: 32 total parking spaces are available;Ratio of 1.95/1,000 SF

APN NUMBER: 2472-016-002

ZONING: BUC3*

TENANT: County of Los Angeles - South Bay Medical Health Center

LEASE EXPIRATION: Month to Month

PROPERTY INFORMATION

10 | 2 3 1 1 W E l S e g u n d o b lv d | h aw t h o r n e , c a 9 0 2 5 011

12 | property overview • property highlights

PRO

PERT

Y DE

TAIL

S


SITE

The subject property is located near the cross streets of Van Ness Ave and W El Segundo Blvd.

APN NUMBER

The APN number is 4056-033-017.

SQUARE FOOTAGES

The total building square footage is 16,434 SF. The total land square footage is 24,000 SF.

ZONING

The property is zoned HAM1YY.

PARKING

12 free Surface Spaces are available; 20 free Covered Spaces are available.32 total parking spaces. The parking ratio is 1.95 per 1,000 SF.

TRAFFIC COUNTS

Daily traffic counts exceed 42,000 vehicles per day.



02FINANCIALANALYSIS


FINA

NCIA

L AN

ALYS

IS


TENANT SF SF % RENT RENT/SF LEASE START EXPIRATION

County of Los Angeles 16,434 100% $30,434.14 $1.85 6/21/1998 M2M

TOTAL 16,434 100% $30,434.14 $1.85 - -

CURRENT

Scheduled Lease Income $365,210

Effective Gross Income $365,210

Expenses $155,932

Net Operating Income $209,278

EXPENSES PER YEAR PER SF

Taxes @1.25% $45,000 $2.74

Insurance $7,897 $0.48

Electrical $1,880 $0.11

Elevator $200 $0.01

HVAC $21,625 $1.32

Janitorial $30,000 $1.83

Repairs & Maintenance $15,009 $0.91

Utilities $34,321 $2.09

TOTAL $155,932 $9.49/$0.79

RENT ROLL

OPERATING DATA

2311 W El Segundo blvd | hawthorne, ca 90250 | 17 2 3 1 1 W E l S e g u n d o b lv d | h aw t h o r n e , c a 9 0 2 5 0 | 17

PRICE: $3,600,000

BUILDING SF: 16,434 SF

LAND SF: 24,000 SF

PRICE/SF (BUILDING): $219

PRICE/SF (LAND): $150

CURRENT CAP RATE: 5.81%

PRICING


03COMPARABLESANALYSIS


ADDRESS PRICE BUILDING SF

PRICE/SF (BLDG) LAND SF PRICE/SF

(LAND) ZONING SALES DATE

1 12540 Crenshaw BlvdHawthorne, CA 90250 $15,378,109 29,561 $520.22 87,689 $175.37 M2 2/8/2018

2 12954 Hawthorne BlvdHawthorne, CA 90250 $1,697,500 6,342 $267.66 15,246 $111.34 C2 5/22/2018

3 13144 Prairie AveHawthorne, CA 90250 $1,350,000 3,847 $350.92 11,613 $116.25 HACM 7/1/2019

AVERAGE $6,141,870 13,250 $379.60 38,183 $134.32 - -

SALE

S CO

MPA

RABL

ES


SALES COMPARABLES


$380AVG PRICE/SF (BUILDING)

13,250AVG SF (BUILDING)

2311 W El Segundo Blvd

1 12540 Crenshaw Blvd

2 12954 Hawthorne Blvd

3 13144 Prairie Ave12

3

SALES COMPARABLES | PRICE/SF

2 3 1 1 W E l S e g u n d o b lv d | h aw t h o r n e , c a 9 0 2 5 0 | 21


ADDRESS RENTABLE SF AVAILABLESPACES

RENT/SF/MONTH RENT/SF/YEAR LEASE TYPE

1 14626 Crenshaw BlvdGardena, CA 90249 6,000

475 - 1,975 SF Available in 3

Spaces$1.70 $20.40 MG

2 14619-14627 S Western AveGardena, CA 90249 7,282

7,282 SF Available in 1

Space$2.25 $27.00 NNN

AVERAGE 6,641 - $1.98 $23.70 -

RENT

CO

MPA

RABL

ES


RENT COMPARABLES - EXECUTED LEASES


$1.98AVG RENT/SF/MONTH

$23.70AVG RENT/SF/YEAR


1 14626 Crenshaw Blvd

2 14619-14627 S Western Ave

1 2

RENT COMPARABLES | RENT/SF/MONTH



ADDRESS RENTABLE SF SF LEASED RENT/SF/MONTH RENT/SF/YEAR LEASE TYPE

1 13100 Yukon AveHawthorne, CA 90250 25,760 5,705 $2.00 $24.00 NNN

2 3201-3237 131st StHawthorne, CA 90250 74,540 2,718 $1.95 $23.40 MG

3 10511 S Western AveLos Angeles, CA 90047 4,173 4,173 $2.18 $26.16 MG

AVERAGE 34,824 4,199 $2.04 $24.52 -


RENT

CO

MPA

RABL

ESRENT COMPARABLES - AVAILABLE FOR LEASE


$2.04AVG RENT/SF/MONTH

$24.52AVG RENT/SF/YEAR


1 13100 Yukon Ave

2 3201-3237 131st St

3 10511 S Western Ave

2

3

1

RENT COMPARABLES | RENT/SF/MONTH



04AREAOVERVIEW



HAWTHORNE,CALIFORNIAIncorporated in 1922, the City of Hawthorne currently has a population of nearly 87,000 within a six square mile area. Ideally located near the Los Angeles International Airport, connected by rail to the Port of Los Angeles and downtown Los Angeles, and surrounded by the San Diego (I-405), Harbor (I-110), and Glenn M. Anderson (I-105) Freeways, the City of Hawthorne could easily be termed the "Hub of the South Bay." By virtue of its location, Hawthorne affords easy, quick access to all that Southern California offers; culture, sports, entertainment, mountains, and beaches. Temperatures in the area are always among the most pleasant in the Los Angeles basin.

The City of Hawthorne possesses a shared vision towards the future to create a great city and build an economy which supports the community's desire for a high quality of life.

Did You Know?

• Jim Thorpe one of the world's greatest athletes lived in Hawthorne• Aircraft pioneer Jack Northrop established his company in Hawthorne• Home of the Beach Boys!

AREA

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28 | 2 3 1 1 W E l S e g u n d o b lv d | h aw t h o r n e , c a 9 0 2 5 0 2311 W El Segundo blvd | hawthorne, ca 90250 | 29

NEARBY ATTRACTIONS1 TESLA DESIGN CENTER

The Tesla Design Studio remains a public mystery. Working from an airplane hangar surrounded by the sprawling SpaceX campus in Hawthorne, California, the Tesla Design Studio team of international designers, engineers and modelers helped Elon Musk’s sustainable energy company upend the entire automotive industry in just over a decade. Every single product — from its fully electric fleet to charging accessories and apparel, plus solar and battery hardware — starts here. Tesla's Chief of Design, Franz von Holzhausen, is the first to say no single team is responsible for the company’s improbable success or its aggressive innovation. Pawel Pietryka, Creative Manager of UI Design, is far more precise: this place is like nowhere else. We talked to Pietryka about his team and how working outside your discipline has been the greatest reward in a staid industry.

2 LAX AIRPORTIn 2018, LAX handled 87,534,384 passengers, making it the world's fourth busiest and the United States' second busiest airport following Hartsfield-Jackson Atlanta International Airport. As the largest and busiest international airport on the U.S. West Coast, LAX is a major international gateway to the United States, and also serves a connection point for passengers traveling internationally. The airport holds the record for the world's busiest origin and destination airport, since relative to other airports, many more travelers begin or end their trips in Los Angeles than use it as a connection. It is also the only airport to rank among the top five U.S. airports for both passenger and cargo traffic.

3 LOS ANGELES RAMS SOFI STADIUMPlanned to open in July 2020, the stadium will serve as the home to the Los Angeles Rams and Los Angeles Chargers of the National Football League (NFL). It is also scheduled to host Super Bowl LVI in February 2022 and the College Football Playoff National Championship in January 2023. During the 2028 Summer Olympics, the stadium is expected to host the opening and closing ceremonies, as well as soccer. Archery will be held on the grounds outside the stadium. SoFi Stadium will be the third stadium, and second to be in current use, since the 1970 AFL–NFL merger to be shared by two NFL teams (MetLife Stadium, in East Rutherford, New Jersey, is home to the New York Giants and New York Jets, as was its predecessor, Giants Stadium).

4 AUTOMOBILE DRIVING MUSEUMThe Automobile Driving Museum is an automotive museum located at 610 Lairport Street, El Segundo, California, USA. The museum is nonprofit 501 organization, founded in 2002 by car collectors Stanley Zimmerman and architect Earl Rubenstein. Its mission is to "collect, preserve, exhibit and ride in historic vehicles." It contains about 130 classic, antique, and vintage automobiles created between 1886 and 2000, of which roughly half are on display at any time. Visitors are permitted to touch and sit in most cars, and on Sunday Car Rides, experience driving around in classic vehicles.



DEMOGRAPHICS

HAWTHORNE, CALIFORNIA87,425 33

POPULATION MEDIAN AGE

EDUCATION

ECONOMY

HIGH SCHOOL GRADUATE

24%MASTER’S DEGREE OR HIGHER

16%BACHELOR’S DEGREE

21%SOME COLLEGE OR ASSOCIATES DEGREE

31%

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The economy of Hawthorne, CA employs 42.3k people. The largest industries in Hawthorne, CA are Accommodation & Food Services (5,217 people), Health Care & Social Assistance (5,005 people), and Retail Trade (4,662 people), and the highest paying industries are Mining, Quarrying, & Oil & Gas Extraction ($66,563), Utilities ($54,928), and Finance & Insurance ($50,297).


$70,035AVERAGE HH INCOME WITHIN 5-M RADIUS

814,652POPULATION WITHIN 5-M RADIUS

107,029OWNER OCCUPIED HOUSEHOLDS

WITHIN 5-M RADIUS

141,852RENTER OCCUPIED HOUSEHOLDS

WITHIN 5-M RADIUS

23,548BUSINESSES WITHIN A 5-M RADIUS

$48,881MEDIAN HH INCOME WITHIN 5-M RADIUS

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2019 Total Population: 22,689 339,532 814,652

Population Growth 2019-2024 1.40% 0.51% 0.70%

2019 Total Households: 7,385 105,285 248,880

2019 Owner Occupied Households: 3,732 41,064 107,02

2019 Renter Occupied Households: 3,653 64,221 141,852

2019 Median Household Income $52,895 $47,606 $48,881

2019 Average Household Income $73,628 $64,782 $70,035

2019 HOUSEHOLDS BY HOUSEHOLD INCOME

<$25,000 1,528 26,953 64,918

$25,000 - $50,000 1,992 28,019 61,851

$50,000 - $75,000 1,215 18,045 40,599

$75,000 - $100,000 943 12,291 28,319

$100,000 - $125,000 514 8,085 18,576

$125,000 - $150,000 453 4,600 11,359

$150,000 - $200,000 411 4,322 11,922

$200,000+ 328 2,969 11,336



BRANDON MICHAELSSenior Managing Director of InvestmentsSenior Director, National Retail GroupTel: (818) 212-2794Fax: (818) [email protected]: CA #01434685www.BrandonMichaelsGroup.com

VAUGHN BROWNInvestment AssociateNational Retail GroupTel: (818) 212-2718Fax: (818) [email protected]: CA #01955613www.BrandonMichaelsGroup.com


Documents

A 16,434 SQUARE FOOT OFFICE BUILDING LOCATED IN THE ... · billion Los Angeles Football Stadium scheduled to open in Summer 2020, plus 3,000 new residential units, 620,000 square