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927 Ocean Avenue

927 Ocean Avenue,Santa Monica, CA 90403

20

Unit

$11,000,000

Price

Property Details

Price Per Unit

$687,500

Price per SF

$1,397

Current Cap Rate

3.4

Market Cap Rate

3.7

Current GRM

21.7

Market GRM

20.0

927 Ocean Avenue

927 Ocean Avenue,Santa Monica, CA 90403

$11,000,000

Price

Property Details

Price per SF

$1,397

Price Per Unit

$687,500

Price per SF

$1,397

Current Cap Rate

3.4

Market Cap Rate

3.7

Unit

20

Current GRM

21.7

Market GRM

20.0

Description

Stepp Commercial is pleased to present 927 Ocean Avenue, a fully entitled property with RTI permits for a 20-unit multifamily development in an A+ Santa Monica location, north of Wilshire Boulevard, overlooking the Pacific Ocean.

The existing property is a 7,509-square-foot parcel, zoned SMR-3, consisting of 16 units with the potential to add four (4) ADUs.

The rehabilitated project will consist of 3 stories with 20 units, including a unique penthouse “crow’s nest” unit facing the ocean.

Property amenities will include a 1,566-square-foot roof terrace with entertainment and lounging areas, a lounge area on the second floor overlooking the ground level courtyard with flowering tree and water feature.

TIME & COST SAVINGS IN BY-PASSING EXTENSIVE ENTITLEMENT PROCESS
927 Ocean Avenue is a designated landmark building, and a new buyer will enjoy significant time and cost savings in by-passing the extensive entitlement process of approximately two (2) years or more.

The City of Santa Monica and the California Coastal Commission have approved, and the buyer will receive, a full set of stamped construction drawings, including architectural, structural, mechanical, electrical, plumbing, civil and landscaping.

MILLS ACT TAX SAVINGS OF ±62%
927 Ocean Avenue falls under The Mills Act Historical Property Contract Program, which provides financial incentive for historical preservation through property tax abatement, in this case, the calculation amounts to a total tax savings of approximately 62%.

The program offers a revolving 10-year contract between the City and the property owner. Contracts are automatically renewed each year and are transferred to new owners when the property is sold.

PRIME SILICON BEACH LOCATION WITH A HIGHLY AFFLUENT RENTER POOL
In the past several years, Santa Monica has also become an integral part of Silicon Beach, Los Angeles’ thriving technology, media and entertainment hub. Silicon Beach is home to many of most well-recognized companies in the world.

Along with this economic transformation has come an increase in a young, affluent, educated population, employed by companies who invest heavily in attracting top-tier talent. With the median home price in the 90403 zip code at nearly $1.8 million, rental demand is strong in this desirable enclave.

POPULARITY OF MICRO UNITS IN PRIME URBAN MARKETS
According to the LA Business Journal, micro-units have become desirable for renters in markets such as Santa Monica, where the cost of living runs high.

An Urban Land Institute survey found that “ability to live alone” was one of the highest priorities of micro-unit tenants, after price and location. Micro units offer the benefit of all three.

Micro units can command rents that are 25%-100% higher per square foot than larger apartments, but because the rents are lower comparatively, there is a larger potential tenant pool.

TROPHY ASSET IN ONE OF THE HIGHEST-BARRIER-TO-ENTRY MARKETS LOS ANGELES
927 Ocean Avenue presents a buyer with a once-in-lifetime opportunity to own a trophy asset in an unparalleled Southern California location.

With its incomparable ocean views, proximity to shops along prestigious Montana Avenue, Third Street Promenade, and a vibrant dining and nightlife scene, 927 Ocean Avenue offers the laid-back appeal of a classic California beach town with big-city sophistication that is unlike anywhere else in the world.

 

Highlights

  • Rare A+ Santa Monica Location Overlooking the Ocean
  • Fully Entitled with RTI Permits for 20-Units Saves Time and Cost
  • Architectural, Structural, MEP, Civil & Landscaping Plans Included
  • Eligible for Mills Act Historical Property Tax Credit Savings of ±62%
  • Prime Silicon Beach Location with Highly Affluent Renter Pool
  • Opportunity to Own a Trophy Asset in an Unparalleled Location

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