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A 28-UNIT, STABILIZED CORE INVESTMENT OPPORTUNITY IN SURGING SILICON BEACH
FIFTY TWELVE APARTMENTSWalker & Dunlop, as exclusive advisor, is pleased to present for the first time ever Fifty Twelve Apartments (the “Property”), a boutique, 28-unit, stabilized Class A Core multifamily investment opportunity well-situated in coveted Culver City. Completed in the beginning of 2020 and currently 100% occupied and 100% collected since inception, Fifty Twelve Apartments boasts premier modern interior finishes and spacious floorplans throughout its 15 one-bedroom and 13 two-bedroom residences. Ideally situated west of the 405 Freeway, the Property’s desirable West Los Angeles location affords residents unparalleled access to the renowned Silicon Beach employment, entertainment and cultural hub, including all that Culver City, Santa Monica, Venice, Marina del Rey, Playa Vista and El Segundo have to offer. Moreover, within 3 minutes, residents can be on the 405 providing convenient access to Greater Los Angeles. With a tightly constrained competitive supply pipeline and a five-year population growth projection of 2.01%, the submarket is expected to achieve annual rent growth of ±4.3% over the next five years. The Property’s unmatched quality, location, economic foundation and competitive landscape inarguably position Fifty Twelve Apartments to achieve both durable and outsized growth for years to come.
Investment ThemesASTONISHING LEASE-UP WITH EXCEPTIONAL TENANT BASE
COVETED SPACIOUS FLOORPLANS & HIGH-END FEATURES
RARITY OF OFFERING
EPICENTER OF SOUTHERN CALIFORNIA’S MOST DOMINANT EMPLOYMENT HUB
CONSTRAINED SUPPLY PIPELINE
5012 S. SLAUSON AVE CULVER CITY, CA
90230
Year Built: 2020
Units: 28
Occupancy: 100%
Avg. SF: ±959
Site Size (acres): ±0.39
Density (units/acre): ±71.79
Parking Spaces: 41
Parking Spaces (per unit): 1.5
UNIT MIX SUMMARY
UNIT TYPENO. OF UNITS
UNIT SF
% SHARE
1BD / 1BA 15 736 54%
2BD / 2BA 13 1,216 46%
TOTAL/AVG. 28 959 100%
COLLECTIONS
MAR MAYAPR
JUN AUGJUL
100%
100%
100%
100%
100%
100%
Astonishing Lease-up with Exceptional Tenant BaseGiven leasing commenced at beginning of the COVID-19 pandemic and came to an end as Los Angeles contemplated a second “Safer at Home” order, the Property’s 107-day lease-up is nothing short of remarkable. Fifty Twelve Apartments is now viewed as a case study justifying both the premier, high-end development of a sub-50 unit property as well as investment south of Culver Boulevard. Equally impressive is the renter demographic the Property was able to attract. Over half of the residents in market rate units earn $100,000+ per year, with ±32% earning over $150,000. This tenant base, 87% of which is under the age of 45, is employed by nearby blue-chip household names such as Disney, Amazon Studios, Headspace, Hulu, Salesforce and Snapchat. The durability of this tenant base was, and continues to be, quantified throughout the COVID lease-up as monthly collections have averaged 100% since opening. The market’s renter pool, and more importantly the inherent value of the Property’s design and finish, will allow Ownership to rest assured that their investment is secure.
100%COLLECTED EVERY
MONTH FROM INCEPTION
87%OF TENANTS UNDER
THE AGE OF 45
±$235,000AVG. HHI PER UNIT
32%OF TENANTS EARN $150K+ PER YEAR
1.20RESIDENTS
PER BED
Coveted Spacious Floorplans & High-End FeaturesThe COVID-19 pandemic has undoubtedly changed our current day-to-day needs. Zoom is now worth more than Twitter, Snap Inc. and Dish Network combined, Peloton is the new Equinox and space is the number one amenity on every renter’s wish list. With the one-bedroom floorplans averaging ±736 SF in size and the two-bedroom floorplans averaging ±1,216 SF in size, with an aggregate average unit size of 959 SF, Fifty Twelve Apartments offers residents the same amount of, if not more, space than other West LA new construction. Moreover, interior features such as kitchen islands, lofts connected by spiral staircases and balconies, rarely seen in this market, help transform the Property’s units into homes.
50NUMBER OF NEW CONSTRUCTION
PROPERTIES
1NUMBER OF NEW CONSTRUCTION
PROPERTIES SOLD OVER THE LAST 2 YEARS
*New construction is defined here as built in 2013 or later
MARINA DEL REYMARINA DEL REY
PLAYA VISTAPLAYA VISTA
PACIFIC OCEANPACIFIC OCEAN
Rarity of OfferingFifty Twelve Apartments, which is being marketed for the first time ever, provides investors with the opportunity to acquire the second new construction multifamily property to trade west of the 405 and north of LAX in over two years. For context, there are 50 properties and ±3,885 units that fit these criteria. The properties in this exclusive group don’t trade for a reason: being at the epicenter of Southern California’s most exciting employment, entertainment and cultural confluence provides residents with an urban coastal oasis not seen anywhere else in the country; this subsequently yields some of the highest multifamily rents in Los Angeles. Moreover, the irreplaceable nature of real estate in this area results in properties doubling as both investment opportunities as well as a collector’s item.
3,884NUMBER OF NEW
CONSTRUCTION UNITS
184NUMBER OF NEW
CONSTRUCTION UNITS SOLD OVER THE LAST 2 YEARS
*New construction is defined here as built in 2013 or later
VENICEVENICE SANTA MONICASANTA MONICA BRENTWOODBRENTWOOD
CULVER CITYCULVER CITY
405
Epicenter of Southern California’s Most Dominant Employment HubSilicon Beach is the most talked about employment hub within all of Southern California, and for good reason. Startup funding continues to climb, and the area is now home to ±86% of all tech companies in Los Angeles. The area generates headlines on a weekly basis ranging from Google converting an airplane hangar into a 500,000 SF office building, to Amazon expanding to a total 600,000SF of office and production space, to the development of a $225M+ office building with never-before-seen features like concave interior balconies. Silicon Beach, and the employers within it, have created one of the country’s most powerful magnets, attracting a profoundly well-educated, affluent and youthful tenant base.
AVERAGE TECH SALARIES IN LOS ANGELES
$155,000 DEVELOPMENT ENGINEER
$134,000 PRODUCT DESIGN
$106,000 DESIGN & USER EXPERIENCE
$103,000 MARKETING
CULVER CITY
±29,000 Jobs
±8.8M SF of Office
MARINA DEL REY / VENICE / PLAYA VISTA ±4. 1 miles (±10min drive from subject)
±36,000 Jobs
±10.8M SF of Office
SANTA MONICA±6.9 miles (±9min drive from subject)
±38,800 Jobs
±11.4M SF of Office
CENTURY CITY±6.5 miles (±12min drive from subject)
±38,800 Jobs
±11.4M SF of Office
EL SEGUNDO±10.6 miles (±15min drive from subject)
±60,000 Jobs
±18M SF of Office
Constrained Supply PipelineOf the ±28,300 market rate units under construction in Los Angeles, only 81 of these units are within a 1.25-mile radius of Fifty Twelve Apartments. This limited multifamily supply is delivering to the same 1.25-mile radius that welcomed Google’s headline-grabbing Spruce Goose Hangar in 2018 and will soon be home to Lincoln Property’s highly anticipated Entrada office building; the building is notorious for its concave, or “innie”, balconies. The juxtaposition between favorable market fundamentals and the limited supply pipeline places a spotlight on the effects of increased construction costs. Los Angeles, a perennial contender for first place, ranked 2nd nationally in YoY Construction Cost increases in Q2 2020. Impeding development further are the fees Los Angeles imposes on development projects. Los Angeles’s Measure JJJ, Linkage fees and increased Quimby fees all make development projects that much tougher to pencil for developers.
96.7%AVG. OCCUPANCY
LAST 5YRS
5.9%AVG. ANNUAL RENT GROWTH LAST 5YRS
4.3%5YR AVG. ANNUAL RENT GROWTH PROJECTION
RECENTLY Implemented City Ordinances (Linkage Fees, JJJ, Quimby)
#2 City in Construction Cost Growth Over the Last 5 Years (Rider Levett Bucknall)
36% Construction Cost Growth Over the Past 5 Years (Rider Levett Bucknall)
FOR FINANCING OPTIONS CONTACT:
TREVOR FASESenior Managing Director | Debt Contact Phone 818.661.1111 Mobile 818.294.0094 [email protected] License #00179302
MARK GRACEManaging Director | Debt Contact Phone 949.208.8455 Mobile 949.310.5459 [email protected] License #01391606
PRESENTED BY:
PRIMARY CONTACTS
ALEXANDRA CANIGLIADirector | Investment Sales Phone 310.979.5744 Mobile 858.342.5247 [email protected] License #1994543
BLAKE A. ROGERSManaging Director | Investment Sales Phone 310.979.5743 Mobile 818.317.5183 [email protected] License #1866591
Walker & Dunlop Investment Sales, LLC is a Licensed Real Estate Broker. The information contained herein has been provided by sources deemed reliable, but no representation or warranty is made as to its accuracy or completeness. Any projections are an estimate based on assumptions believed to be reasonable, but no assurance can be given that the projections will be achieved. All information is subject to errors, omissions, changes, and can be withdrawn without notice, and seller expressly disclaims any obligation to supplement or update any information.
HUNTER COMBSManaging Director | Investment Sales Phone 858.605.0161 Mobile 858.205.7939 [email protected] License #1771662
JAVIER RIVERASenior Director | Investment Sales Mobile 310.979.5751 Phone 310.497.9370 [email protected] License #1875535
WalkerDunlop.com
LOS ANGELES12100 Wilshire Blvd. Suite 1500 Los Angeles, CA 90025
5
405
10
105
1
2
90
LOS ANGELESLOS ANGELES
INGLEWOODINGLEWOOD
PACIFIC OCEAN
CULVER CITYCULVER CITY
SANTA MONICASANTA MONICA
BEVERLY HILLSBEVERLY HILLS
HAWTHORNEHAWTHORNE
