02 Apr Classic Rustic Canyon Investment – 4.98% CAP
Commercial – Mixed Use Investment Opportunity
107 & 117 W Channel Road, Los Angeles, CA 90402
Asking $5,200,000
Contact Eric von Bluecher
310-900-9505 – call/text
evonbluecher@concord-re.com – reply email for more details
Stats:
- 16.05 GRM
- 4.98% CAP
- 11 mixed used units of residential/office
- Lot size approx 7,056 – triangular shape
Highlights:
- California Beach Bungalow architecture built in 1915 and 1933
- Delivered vacant or occupied
- Current cap rate is 4.98% w/ a $27k/month until 2019+ 5 yr extension
- Property is ideally located between Malibu, Pacific Palisades, Santa Monica and Venice.
- Great opportunity for multiple uses from Short-term Rentals, Multifamily and Office
Deal Options:
- Multifamily – stabilizes at an approximate 4.5% cap, LA rent control
- Office – anyone living within a mile that needs an office, the top floor has ocean views along with the ocean views out of the west and middle structure. Commerical rent is in about $3.5-$4.5/foot in the surrounding area.
- Mixed use – mixed zoning can provide for a combined office, short-term, apartment for the enterprising investor
- Short-term rental – this could be ideal for short-term rental combined with a nice distance from single family homes. The classic look, the proximity to the beach, Venice, Malibu, Palisades, Santa Monica, would be ideal for short-term rentals. See VRBO or similar sites to research rates. Rates right now easily range in the $200-$400/night. If you were to rent the 6 lower units on the east structure for $200/night, top floor ocean view unit for $400/night, the 2 bed unit in the center for $200 and the 3 bed structure on the west for $400/night, this equates to $2,200/night gross, multiplied by 180 days for the prime season = $396,000. Say you get half for the rate the rest of the 180 days = $198,000. This equates to $594,000 gross, not including the small office on first floor of the center structure and the small office on the street level floor of the furtherst west structure.
- Potential or partial development – not 100% sure this would pencil out since my findings have been a limit of 2 stories, I don’t think you can get enough square footage on this to make sense, though if you are a developer experienced in this area, you may have a few ideas up your sleeve that will make sense.
- Rehab/Sober Living/Senior Living – Sober living is the current use, $27,000 gross is paid to the owner, tenant takes care of basic maintenance and expenses, owner pays for property taxes. Low maintenance double net lease in place, expires in 2019 with a 5 year option.
The Landscape:
Own a piece of classic California beach lifestyle in Rustic Canyon. Back in the day, this intersection was a thriving hot spot of beach goers, artist, photographers and mix of eclectic neighbors that still reside in the canyon today. In the 20’s thru the 50’s, this intersection once had a full line of restaurants, hot dog stands shops and markets that would cater to beach, neighbors of the canyon, the Huntington Palisades (now know as Pacific Palisades) and early Santa Monica. Today there are still a few fantastic restaurants and eclectic shops that reside in the Canyon, most notably Giorgio Baldi and SHOREbar.
Eric von Bluecher
Investment Associate
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424.284.4447 office
310.900.9505 mobile
310.551.0661 fax
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449 South Beverly Drive, 1st Floor
Beverly Hills, CA 90212
—————————
www.concord-re.com
evonbluecher@concord-re.com
BRE# 01926201
Eric von Bluecher
Investment Associate
—————————
424.284.4447 office
310.900.9505 mobile
310.551.0661 fax
—————————
449 South Beverly Drive, 1st Floor
Beverly Hills, CA 90212
—————————
www.concord-re.com
evonbluecher@concord-re.com
BRE# 01926201