Exclusive Listings

16-Units Value-Add within 5 blocks from Santa Monica Beach

Address:
1901 6th St
Santa Monica, CA 90405
Price:
$7,600,000
Status:
Available
Type:
Apartment
# Units:
16
Year Built:
1969
Building Size:
14,399 SQFT
Lot Size:
10,195 SQFT
CAP Rate:
3.34%
GRM:
18.35x
Price/Unit:
$475,000
Price/SqFt:
$528

INVESTMENT HIGHLIGHTS:

  • Class A Location in Ocean Park neighborhood of Santa Monica (AHH Income ±$122,576 within a-mile radius)
  • Walker’s Paradise (Walkscore: 91!), across the street from Santa Monica High School, and walking distance to Santa Monica Civic Center, Santa Monica Beach, Downtown Santa Monica/3rd Street Promenade, Santa Monica Pier, Metrolink light-rail station, and ALL the best amenities the city has to offer!
  • Assumable Loan at 3.948% interest rate fixed until Dec 2024 (30-year term starting from Dec 2014)!
  • Attractive CAP Rate with significant rental upside potential (±35%) for a very attractive proforma CAP Rate
  • Seller has never attempted any buyouts! Higher natural turnover of units which provides real opportunity to unlock rental upside; Ocean park neighborhood consists mostly of 1-bedroom and studio units which encourage younger tenant mix that has higher mobility
  • Priced very attractively compared to other on-market apartments in the same Ocean Park neighborhood!

 

PROPERTY HIGHLIGHTS

  • Easy to operate and rent 16-unit apartment 5 blocks from Santa Monica Beach
  • Large and bright units with partial ocean views from several units
  • Unit mix encourages younger tenant mix with higher mobility and creates faster natural turnover
  • Approximately 8-units have been tastefully upgraded during current ownership
  • Building has an elevator and secured entrance/parking with storage cabinet, shared laundry facility, and is separately metered for electricity and gas
  • Ample parking! 21 spaces (5 tandem) for 16 units!
  • Some units have been upgraded with luxury vinyl hardwood floors, new kitchens, and new bathrooms
  • Secured entrance and parking; separately metered for electricity and gas, elevator and shared laundry room

 

EXECUTIVE SUMMARY

The Growth Investment Group is proud to present Ocean Park Apartments, 1901 6th St, Santa Monica. It is strategically located across the street from Santa Monica High School and just a block away from Santa Monica Civic Center (City Hall, Court, and police station). It is also steps away from Santa Monica beach and some of the best amenities in Santa Monica (Santa Monica Third Street Promenade, Santa Monica Pier). This asset offers the investor a rare opportunity to own a value-add apartment asset in a class A location and neighborhood in Santa Monica.

The property is a 16-unit apartment in the Ocean Park area of Santa Monica. The Ocean Park neighborhood is very unique in that it has one of the highest proportions of one, two, or no(studio) bedroom real estate of any neighborhood in America; it has a higher proportion of its residents employed as executives, managers, and professionals than 98.4% of the neighborhoods in American. This unique neighborhood’s characteristics translate to a younger tenant mix and higher mobility which is a desirable characteristic in any rent-controlled area. It has a strong demographic of $122,576 average household income within a 1-mile radius and has superb access to FWY 10, CA-1N (Pacific Coast Highway) and FWY 405.

The property is a 3-story apartment that was built in 1969. It has a total of ±14,399 square feet building size and is situated on a ±10,195 square feet OP4 zoned lot. The units are situated on the 2nd and 3rd floor with secured parking garage on the ground level. The property is served by an elevator and has a shared laundry facility. It has pitch roof and partial ocean views from some units.

Unit mix consists of fifteen (15) large 1bedroom+1bathroom units, and one (1) studio unit. The property is separately metered for electricity and gas. It is under Santa Monica Rent Stabilization Ordinance (rent control). Several units have been upgraded. Each unit is large and spacious with many windows. Approximately 8-units have been tastefully upgraded with luxury vinyl/laminate wood flooring, ceiling fans in living room, upgraded kitchen (shaker cabinets with quartz countertops), upgraded bathroom, and mirrored closet doors in the upgraded units.

The property offers sufficient parking with 21 parking spaces (16 + 5 tandem); this is a rare amenities for this location.



LOCATION, ACCESS AND AMENTITIES

Located in the southwest corner of Santa Monica is the Ocean Park neighborhood. This neighborhood has a mix of older, smaller homes, apartment buildings, and condos. Several housing towers are located along the beach. The area has a funky, artsy feel similar in manner to its neighbor, Venice Beach. Eclectic, diverse, funky, happening—Ocean Park is all of the above, and more. Set at the southeastern edge of the city and linked directly to the beach, Ocean Park Boulevard boasts an authentic local vibe, a crop of talked-about restaurants, and “Where did you get that?!” boutiques and shops. Accentuated by spacious Clover Park, the neighborhood is also home to the Santa Monica Airport and its dynamic aviation museum, the Museum of Flying. The airport’s observation decks, eco-friendly gardens, and twice-monthly antiques market are also big draws.

Many Santa Monica residents come to shop/browse on Main Street, home of many boutiques and restaurants. Main Street also hosts a weekly farmer's market on Sundays. SMASH (an alternative school) and John Muir elementary schools are located in the neighborhood. Olympic High, an alternative high school is also located in the area.

Ocean Park is unique because it's walkable, bikeable, and has a thriving community, both business and resident. Its residents are demographically diverse, yet the area maintains a small town, community feeling. 

In addition, the Ocean Park neighborhood is very unique in that it has one of the highest proportions of one, two, or no(studio) bedroom real estate of any neighborhood in America. Most neighborhoods have a mixture of home or apartment sizes from small to large, but here, the concentration of studios and other small living spaces is at near-record heights. With 86.2% of the real estate here of this small size, this most assuredly is a notable feature that makes this neighborhood unique, along with just a handful of other neighborhoods in the U.S. that share this characteristic.

The Ocean Park neighborhood has a higher proportion of its residents employed as executives, managers and professionals than 98.4% of the neighborhoods in American. In fact, 72.1% of the employed people here make a living as an executive, a manager, or other professional. With such a high concentration, this truly shapes the character of this neighborhood, and to a large degree defines what this neighborhood is about.


Due Diligence


Broker Contact

Han Widjaja-Chen
Direct: 626.594.4900
han.chen@growthinvestmentgroup.com

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