Description:

Rare opportunity to acquire and/or develop/reposition prime retail/office buildings in the central business district of Rolling Hills. True NNN scenario with enormous upside. Located in the heart of the Rolling Hills central business district, opposite the Peninsula Shopping Center, 638-706 Silver Spur Rd. comprises three lots, with a total of 65,906 SFT, and two buildings, with a total of 41,231 rentable SF. Property currently has 29 units. Rentable space includes a fully-equipped restaurant (5,000 SF) on the ground floor and office suites as large as 4,500 SFT. Current tenants include a nationally-branded academic tuition business, as well as local business, including a dentistry office and dry-cleaner. Rear parking lot has space for more than 60 vehicles and street parking is also permitted.
Uniquely positioned for reposition/development, the property's buildings and land can be leveraged in the following four value-add scenarios:
Strategy #1 - Redevelopment: would include a redevelopment of the site. The property is located within the city’s “mixed use overlay.” This allows for apartments or condos to be built over commercial office/retail space. The site is zoned by-right for up to 33 units, but city planning director has voiced support for up to 60 units, plus a significant amount of retail or office. This strategy offers the highest potential return with the potential of a high 8-figure return. However, there are a three other strategies, should the new owners choose not to redevelop at this time.
Strategy #2 - Value-add: would include “face lifting” both structures, raising existing and new tenants to market rents (between $2.25 and $2.75 per SF), lease-up vacancy with medical office and/or national credit tenant (owner has interest from two entities). Most of the existing tenants are under market, however, all are on month-to-month leases, and so could be increased quickly. From an investment standpoint, once stabilized, the property would produce an approximate 8% cap rate.
Strategy #3 - Value-add: would include “rent-ready” upgrades of existing vacancies of both structures. Rents would be at the building's current rate of $2.00 per SF. From an investment standpoint, the property would produce an approximate 5.6 cap return.
Strategy #4 - Value-add: would include “mapping” the existing office units in one or both buildings, and selling them individually, for significantly more per square foot than the entire structures would trade for. Market analysis shows high demand for small commercial/office condos.

Presented by:

Carl  Adams,  e-Pro, GRI

Director

(215) 803-8507

(215) 803-8507

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Listed by:

Keller Williams Realty Los Feliz

Los Feliz