DERREK OSTRZYZEK DRE #01984295
310.924.9348
derrek.ostrzyzek@berkadia.com
TOM MORAN JR. DRE #01201310
714.269.8380
tom.moran@berkadia.com
MIKE MURPHY DRE #01241878
949.242.4073
mike.murphy@berkadia.com
RACHEL PARSONS DRE #01335449
858.945.0992
rachel.parsons@berkadia.com
DAVID BLEIWEISS Managing Director 949.622.9263
david.bleiweiss@berkadia.com
JACK HUNSICKER Director, Mortgage Banking 949.622.9221
jack.hunsicker@berkadia.com
HOUSEHOLD INCOME AVERAGE
$148,277 22% RENT-TO-INCOME
NOTABLE EMPLOYERS
INDUSTRY BREAKDOWN
Professional Services
Entertainment/Media
Hospitality/customer Service
Self-Employed/Other
Government/Education
Healthcare/Medical Services
Miracle Mile is an infill, supplyconstrained submarket in the midst of a renaissance that is generating incredible demand for luxury rental product. With current ownership having recently invested heavily in curing deferred maintenance and renovating common areas, the Preston offers investors the most efficient way to satisfy this demand through a thoughtful renovation strategy of unit interiors. Newer properties within walking distance are proving out as much as $1,000 in rent headroom, offering investors the opportunity to drive rents by completing a unit interior renovation program that would appeal to LA’s high-income, luxury-seeking renters.
With escalating construction costs, a lack of available land, and a notoriously onerous entitlement process, the Mid-Wilshire market has one of the highest barriers to entry of any submarket in the nation. in fact, over the past 5 years the submarket has only seen the development of two institutionally sized apartment communities (One Museum Square and Vision on Wilshire), both of which are highrise construction. With no projects under construction, The Preston presents a unique opportunity to not only gain access to this exclusive submarket, but also to acquire quality podium construction asset at well-below today’s replacement cost
Since 2012 the Mid-Wilshire submarket occupancy averaged 96.1% and annual rent growth averaged 4.3%, which was higher than the Los Angeles market as a whole (3.9%). With employees returning back to the office, a new owner has the opportunity to take advantage of the submarket’s strong rent growth that will average 4.3% annually over the next three years. The property is currently seeing positive rent momentum, with recent lease tradeouts averaging +17.4% over the last 12 months.
Located at the geographic center of Los Angeles, Miracle Mile is just four miles from the myriad of jobs, retail and entertainment in Beverly Hills, West Hollywood, Hollywood and century city. Additionally, with a Walk Score of 94, the property is just one block from Ralphs and Rite Aid; two blocks from LA’s renowned “Museum Row”; three blocks from major media and entertainment companies like CBS Radio, Sundance Institute and SAG-AFTRA; and within a 15-minute walk of The Grove, LA’s premier 600,000 sq. ft. outdoor lifestyle center. By 2024, residents will have two brand-new metro stations within a few blocks that will take them to Downtown in under 15 minutes thanks to the $9.5 billion Metro Purple Line extension currently under construction.
there is no question that a well-executed renovation of the Preston’s unit interiors would generate substantially higher rents. 12% of units are in original 1989 form and 88% of units interiors underwent a modest renovation program that was conceived almost 10 years ago. A new owner has the opportunity to implement a comprehensive interior renovation strategy across 100% of units that would transition the Preston from a property geared toward “2010 renters” to one that attracts LA’s high-income renters seeking luxury living in a hip, urban environment.
Add undermount sink with high-end goose neck faucet
Add modern full-length tile backsplashes
Upgrade stainless steel appliance packages
Replace existing counters with thick marble-style countertops with waterfall edge
Install contemporary pendant lighting fixtures
There’s over a billion dollars worth of capital pouring in to major commercial developments within a few blocks of The Preston
LAcMA’s expansion project, designed by Peter Zumthor, is currently underway and will open in 2024. the 350,000 sq. ft. additional space will house LAcMA’s permanent art collection. Slated for completion in 2024, the two-story edifice will bridge over Wilshire Boulevard, containing 350,000 square feet of space within.
completed in 2021, the Academy Museum of Motion Pictures is the world’s premier movie museum. Located two blocks away from the Preston, the 300,000 sq. ft. museum is expected to attract more than 850,000 visitors annually.
Onni Group is pursuing a redevelopment project that would more than double the existing office space at the Wilshire courtyard complex located two blocks from the Preston. Plans call for the construction of two high rise office towers totaling 2.34 million sq. ft. of office space. Upon completion, the new office complex would put Miracle Mile on the map as having the tallest building in LA west of Downtown.
the Natural History Museums of LA county announced that it would be undertaking a major new Master Plan and renovation process for the La Brea tar Pits, including the existing museum, excavation sites, and other parts of the 13-acre site where the institution is located. the winning concept, called “La Brea Loops and Lenses,” would include a one-kilometer walking path connecting the Page Museum, the excavation pits, and the iconic lake pit and mastodons.
construction is well underway on the $9.5 billion Metro Purple Line extension that will ultimately connect Westwood to Downtown along Wilshire Boulevard in under 25 minutes. in addition to delivering a brand-new metro station within a few blocks of the Preston, the expansion project is also serving as a catalyst for accelerated growth in Miracle Mile, spurring increased private sector investment, economic growth, and rental demand.
the Preston is a well-maintained 169-unit apartment community that was built in 1989. the podium-style property features great modern physical attributes such as ninefoot ceilings, in-unit washers and dryers, and central air conditioning. current ownership recently invested heavily in upgrading all of the property’s common area amenities, bringing them more in-line with modern properties in the submarket. the property also has a number of unique and highly desirable features like gas fireplaces in the majority of units, a generous parking ratio (2.0 spaces per unit), and vaulted ceilings on top floor units—some of which offer views of the iconic downtown skyline.
Site Address 630 Masselin Avenue
Los Angeles, cA 90036
year Built 1989
No. of Apartments 169
Acreage 1.55
Average Apt. Size 916 Sq. Ft.
Net rentable Sq. Ft. 154,818
No. of Buildings 1
residential Stories 4
No. of Elevators 3
Parking type two-level podium garage
total residential Parking Spaces 336
residential Parking ratio 2.0:1
Walk Score 94
Assessor’s Parcel Number 5508-014-037
t he Preston is a podium-style apartment community consisting of four stories of wood construction above a two-level, concrete parking garage. the controlled-access building is served by three elevators, which also serve the two parking levels. the property has frontage on both Masselin Avenue and Hauser Boulevard, with the main entrance to the property located off of Masselin Avenue. current ownership recently painted the exterior of the building in addition to curing deferred maintenance throughout the property.
the Preston has a total of 421 parking spaces located in a two-story podium parking garage. 336 of the spaces are reserved for residential uses, providing a generous parking ratio of 2.0 per apartment. t he remaining 85 spaces are allocated to a neighboring office tenant through an easement. these spaces have a separate parking entrance off of Hauser Boulevard. For residents, the secured structure has three ingress and egress points, two off of Masselin Avenue and one off of Hauser Boulevard, each accessible via a key fob remote.
Parking type # of Spaces
Single 92
tandem 236 (118 lines)
Guest 3
EV charging 4
Handicap 1
total 336
Spaces Per Unit 2.0:1
Spaces Per Bedroom 1.3:1
Note: Not included in the above parking total are the 85 spaces in the parking structure that are allocated to a neighboring office tenant through an easement. These spaces are able to be accessed through a separate entrance off of Hauser Boulevard.
• Quartz countertops in kitchens and bathrooms
• 9-foot ceilings (vaulted on 4th floor)
• Stackable washers and dryers
• Stainless steel kitchen appliances including built-in microwaves
• Espresso or cherry wood kitchen cabinetry
• Gas ranges
• Plank wood-style flooring throughout
• central A/c and heating
• Gas fireplaces in majority of homes
• Breakfast bars
• Private patios or balconies
• Swimming pool and spa
• Poolside lounge with seating areas and barbecues
• 24-hour fitness center with weight training and cardio equipment
• Business center with computers and printer services
• Resident lounge with multiple gathering spaces and a coffee bar
• Outdoor lounge with seating areas and TVs
• Dog park
• Package concierge
• Controlled access building
Miracle Mile is one of LA’s most geographically central neighborhoods, offering residents an unparalleled level of connectivity throughout the city. the neighborhood is centered on LA’s main thoroughfare, Wilshire Boulevard, which connects Downtown to Westside. Preston residents are located in the very heart of Miracle Mile and can reach Beverly Hills, Hollywood, century city, Downtown and other neighborhoods in a short 10- to 20-minute drive. this affluent community has long been known for its pedestrian-friendly streets, premium retail offerings, as well as its popular Museum row – housing four of LA’s most iconic museums. Additionally, with homes in the neighborhood routinely selling in the $2 to $4 million dollar range, Miracle Mile has easily become one of LA’s most sought-after residential enclaves.
in addition to the neighborhood’s centrality and exceptional amenities, Miracle Mile has become a hotbed of economic activity. the primary catalyst for the area’s resurgence is the Purple Line extension, which will ultimately connect Downtown to Westside, adding seven new stations, two of which will be within a few blocks of the Preston. the continuation of Miracle Mile’s prosperity is inevitable and this location will continue to be a popular and sought-after neighborhood for years to come.
Housed in a historic 1930s-era Firestone tire shop in Miracle Mile, All Season Brewing spent four years transforming this long-dormant 13,000 sq. ft. car service station into one of the most popular drinking and dining spots in all of LA. Decorated with tires, tools, and memorabilia, it feels as if the building is a lived-in mechanic’s museum, welcoming its own evolution while celebrating its history.
Every neighborhood in every great city deserves a top-notch italian bistro, and Uovo fits that bill exactly. Lele Massimini, co-founder of Sugarfish, is the mastermind behind Uovo which serves up some of the best handmade pastas imported straight from italy. Eater calls Uovo “LA’s Best Affordable Pasta restaurant” and its Santa Monica outpost received high praise from LA times critic Jonathan Gold.
Sycamore Kitchen is not your run-of-the-mill corner bakery. After six years of running their Michelin-starred restaurant, Karen and Quinn Hatfield opened Sycamore Kitchen on La Brea and its quickly become a neighborhood staple serving up house-made pastries, a world-class coffee program, and an exceptional brunch menu.
Walking into yuko Kitchen is like walking into a jungle oasis with a profusion of plants hanging from the ceilings and adorning the outdoor patio. the colorful and quirky restaurant serves up outstanding Japanese comfort fare with big flavors that has helped make it one of the most popular restaurants in LA.
600,000
SQUARE FEET OF RETAIL JUST A 15 MINUTE WALK FROM THE PRESTON
t he Preston is central to some of the best retail amenities in Los Angeles, with over 1.2 million sq. ft. of retail in Miracle Mile alone. For everyday grocery needs, the property is within a mile of two farmers markets, as well as a number of grocery stores like Lassens Natural Foods, Whole Foods, trader Joe’s and a ralphs that is directly across the street from the property. As for high-end retail, residents are a short distance away from popular destinations like t he Grove (1 mi.), Larchmont Village (2.5 mi.) and Sunset Plaza (3.5 mi.).
THE GROVE , LA’s premier 600,000 sq. ft. outdoor lifestyle center, is just a short 15-minute walk from t he Preston and will transport you to a shopper’s paradise. t he prominent fashion destination will keep you occupied for hours with its endless mix of retail, restaurants and entertainment. take a ride on the trolley down Main Street, go see an i MA x film at the theatre, or stop at La Piazza for an i talian meal in the LA sunshine. t he Grove offers many luxury brands—Nordstrom, coach, Nike and rayBan are just a few of the many that residents have access to.
the $9.5 billion Metro Purple Line Extension project is currently underway, which will connect Downtown to Westside along Wilshire Boulevard in under 25 minutes. the extension will create seven new stations, with two located directly in Miracle Mile, just a few blocks from the Preston (Wilshire/La Brea and Wilshire/Fairfax stations). By 2024, residents will be able to reach Downtown in under 15 minutes via a ride on the new Purple Line.
rideshare bikes and scooters are just a few of the modes of transportation available in this area. Grab one of these ride options right at the Preston’s doorstep and be free to enjoy a short scooter or bike ride to many of LA’s neighborhoods.
residents can catch a show at El Rey Theater, four blocks away from the Preston. the historic art deco venue has hosted famous artists like Lana Del rey, Jack White and Meghan trainor.
the Preston is situated in the ultimate live-work-play environment. conveniently located in Miracle Mile’s “Museum row,” residents can enjoy LACMA, The Petersen Automotive Museum, Academy Museum of Motion Pictures, La Brea Tar Pits, and countless other entertainment options. there are multiple parks surrounding the property that give residents access to beautiful public green space. residents can also catch a show at the El Rey Theatre steps away from their front door, or take a workout class at the exclusive neighborhood Equinox Gym just down the street.
Located at the geographic center of Los Angeles, Miracle Mile boasts incredible access to LA’s most prominent employment centers, and offers t he Preston residents a level of centrality that’s not easy to come by in LA. i n just 10 to 20 minutes, residents can access jobs in Hollywood/West Hollywood, Beverly Hills, century c ity, c ulver c ity, Westwood, West Hollywood, Santa Monica and Downtown LA.
Koreatown
Downtown Los Angeles Miracle Mile
Widely known as the epicenter of the entertainment capital of the world, Hollywood is home to the region’s greatest economic drivers—the media and entertainment industries. Every component of the tV, film, media and entertainment industries is located within this region, with major companies like Netflix, MtV, BEt, comedy central and VH1—all taking up sizable footprints within the area.
Beginning with the delivery of the Metro red Line to Hollywood in the early 2000s, Hollywood has been met with a full-scale revitalization. this triggered an uptick in demand for new class A office and made Hollywood a hotbed for office development in LA. Since 2015, 2.3 million sq. ft. of office space has been added to the submarket, including Kilroy’s 355,000 sq. ft. Academy on Vine development, Hudson Pacific’s 328,000 sq. ft. Epic tower, and the 500,000 sq. ft. icON creative office tower at Sunset Bronson Studios. this demand driven by content and media companies only continues to surge with several major office developments currently proposed, including most notably the Star, which was recently approved for an 18-story tower on the Sunset Gower Studios lot.
With a Hollywood renaissance in full effect and companies scrambling for office space within the area, not only will it bring thousands of new jobs within 10 minutes of the Preston, but Miracle Mile is poised to see a migration of new media and tech tenants within the corridor.
in early 2021, Netflix moved into their newest Hollywood office at th Academy on Vine with 350,000 sq. ft. of space. that they preleased in 2018.
Westside LA is home to the prominent employment corridors of Westwood/century city, Beverly Hills, Santa Monica, culver city, and Brentwood, all of which are home to an impressive lineup of corporate heavyweights. From some of the nation’s premier investment banks (Goldman Sachs and Houlihan Lokey), to top-notch law firms (O’Melveny & Myers and Latham & Watkins), as well as tech giants (Amazon, Google, Facebook, yahoo!, and Snapchat), Westside LA houses roughly 500,000 jobs.
this year Amazon leased 200,000 sq. ft. at Water Garden complex in Santa Monica and announced it would be adding 1,000 corporate and tech jobs.
With over 500,000 workers, 13,000 businesses and 36 million sq.ft. of office space, Downtown LA is Southern california’s largest employment center. it is home to the country’s most prestigious law firms, Fortune 500 companies and consulting firms including the Big Four (Deloitte, Pricewaterhousecoopers, Ernst & young and KPMG), where average salaries are $137,000. in addition to the traditional professional services firms, cutting edge tech companies like Virgin Hyperloop (49,000 SF) and Weedmaps (115,000 SF) as well as wellestablished fashion brands like Adidas (107,000 SF) and Forever 21 (162,000 SF) are beginning to lease large amounts of space and entering the stable downtown office market.
Below is a pro forma operating statement representing Berkadia’s projections for the first year of buyers’ operations. the pro forma illustrates current operations on (1) an “As-is” basis, which assumes continuation of current operations and on (2) a fully stabilized, fully-renovated basis, which projects operations based on the repositioning strategy in the Executive Summary section of this Offering Memorandum. On the following pages are detailed footnotes explaining our assumptions.
1. Market Rents – t he table below summarizes average in-place rents and lease rates for the last 30, 60, 90, and 180 days of move-ins for each unit type as of September 2, 2022. Our renovated Pro Forma reflects the recent leasing and is meant to project stabilized year one rents. t he renovated Pro Forma trends market rents 5% to reflect rent growth for an investor’s first full year of ownership.
2. Loss or Gain to Lease – the “as-is” pro forma projects a loss-to-lease of 50.0% which equates to half of the total loss-to-lease today. the stabilized renovated pro forma projects loss-to-lease at 2.0% of gross scheduled rents.
3. Concessions – t he pro forma assumes no concessions moving forward.
*Averages do not include Subject Property
5600 WILSHIRE BLVD | LOS ANGELES, CA 90036
Distance 0.2 Miles
total Units: 284
Owner: Essex Property Trust
Manager: Essex Property Trust
year Built: 2008
total Sq. Ft.: 243,910
Occupancy: 97%
Survey Date: 9/8/2022
concessions: None
Parking Policy:
No parking included. One-bedrooms may rent first space for $25/mo and second space for $100/mo. Two-bedrooms may rent first and second space for $25/mo, and thrid space for $100/mo.
5550 WILSHIRE BLVD | LOS ANGELES, CA 90036
Distance 0.2 Miles
total Units: 163
Owner: GID
Manager: Wiindsor Communities
year Built: 2010
total Sq. Ft.: 312,165
Occupancy: 98%
Survey Date: 9/8/2022
concessions: None
Parking Policy:
No parking included. One-bedrooms may rent first space for $25/mo and second space for $100/mo. Two-bedrooms may rent first space for $25/mo, second space for $75/mo and thrid space for $100/mo.
5520 WILSHIRE BLVD | LOS ANGELES, CA 90036
Distance 0.3 Miles
total Units: 175
Owner: Greystar
Manager: Greystar
year Built: 2016
total Sq. Ft.: 203,200
Occupancy: 95%
Survey Date: 9/8/2022
concessions: $1,000-$2,500 Look & Lease
Parking Policy:
One parking space per bedroom included in rent. Additional spaces are available for $100/mo.
Distance 0.8 Miles
total Units: 144
Owner: Alliance Residential
Manager: Greystar
year Built: 2018
total Sq. Ft.: 120,381
Occupancy: 94%
Survey Date: 9/8/2022
concessions: None
Parking Policy: One parking space per bedroom included in rent. Additional spaces are available for $125/mo.
950 S FAIRFAX AVENUE | LOS ANGELES, CA 90048
Distance 0.8 Miles
total Units: 150
Owner: MetLife
Manager: UDR
year Built: 2018
total Sq. Ft.: 200,893
Occupancy: 98%
Survey Date: 9/8/2022
concessions: Two weeks free
Parking Policy: Valet parking included in rent.
5115 WILSHIRE BLVD | LOS ANGELES, CA 90036
Distance 0.8 Miles
total Units: 123
Owner: AvalonBay Communities
Manager: AvalonBay Communities
year Built: 2007
total Sq. Ft.: 165,675
Occupancy: 96%
Survey Date: 9/8/2022
concessions: None
Parking Policy:
One-bedrooms include a single space, twobedrooms include a tandem space. Additional single space available for $75/mo.
6220 W 3RD STREET | LOS ANGELES, CA 90036
Distance 0.9 Miles
total Units: 521
Owner: Apartment Income REIT
Manager: Aimco
year Built: 2005
total Sq. Ft.: 679,557
Occupancy: 99%
Survey Date: 9/8/2022
concessions: None
Parking Policy:
Parking structure pricing ranges from $65-100/ mo for single spaces and $100-125/mo for tandem spaces.
t he material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/or used for any purpose or made available to any other person without the express written consent of Berkadia real Estate Advisors LLc and Berkadia real Estate Advisors i nc. in accepting this, the recipient agrees to keep all material contained herein confidential.
t his information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. i t does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. in particular, Berkadia real Estate Advisors LLc, Berkadia real Estate Advisors i nc. and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. t he information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia real Estate Advisors LLc, Berkadia real Estate Advisors i nc. and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property.
Berkadia real Estate Advisors LLc and Berkadia real Estate Advisors i nc. and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.
All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals. Berkadia real Estate Advisors LLc and Berkadia real Estate Advisors i nc. recommend, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.
t he Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.
For more information on these and other Berkadia® exclusive listings, please visit our website at www.Berkadia.com
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