Created date: September 14, 2023
Date last updated: November 14, 2023
- Built in 1973
- Prime Ocean Park Location
- Approx. 70% Upside in Rents
- Balconies with Ocean Views
- Large Townhouse Style Units
- Ample On-Site Parking
- First Time on Market in 25 Years
- One-Half Mile Walk to Beach
The LAAA Team of Marcus & Millichap is proud to present this 8-unit multifamily investment property located at 511 Pier Avenue in Santa Monica. The subject property resides just two blocks off world famous Main Street, the hub for shopping, entertainment, restaurants, and nightlife for beach city locals.
Built in 1973, this 8-unit property sits on a 5,981 square foot lot and boasts an attractive unit mix of (1) Studio, (1) 2 Bed / 1 Bath two story townhouse unit, and (6) 1 Bed / 1 Bath two story townhouse units with beautiful views overlooking Santa Monica rooftops to the West in one direction, and the Santa Monica Mountains in the other. The property also comes equipped with 12 parking spots for tenants and their guests, and coin laundry on-site.
The City of Santa Monica has undergone a remarkable transformation in recent years, emerging as a thriving hub for technology companies and attracting a wave of young, skilled professionals seeking dynamic job opportunities. With its vibrant ecosystem of startups, established tech giants, and a supportive community, Santa Monica has become a magnet for innovation, driving economic growth and reshaping the city's landscape.
One of the driving forces behind Santa Monica's tech boom is its strategic location within the broader tech-rich region of Silicon Beach. This proximity to renowned institutions like the University of California, Los Angeles (UCLA) and a host of venture capital firms has created an environment ripe for collaboration and investment. Tech companies of all sizes, from nimble startups to industry titans, have recognized the advantages of setting up shop in Santa Monica, leading to the establishment of a diverse and dynamic tech scene that will help sustain the city’s continued growth.
The subject property is situated with convenient access to essential amenities, public transportation, and desirable neighborhood features. The current gross rental income of $175,308 per year reflects the existing rental rates, but to assess the future rent growth potential, a closer examination of various market factors is imperative.
Santa Monica’s steady demand for rental properties is due to a growing population and an influx of young professionals seeking housing in the area. Simultaneously, the supply of rental units has been relatively constrained, which has resulted in a competitive landscape for available apartments. This supply-demand imbalance creates a conducive environment for rent escalation.
The broader economic indicators further support the potential for future rent growth. With the local economy exhibiting steady job growth and increased disposable income, residents are better positioned to absorb higher rental costs.
In conclusion, 511 Pier Avenue presents an investor the unique opportunity to capitalize on the future growth of Santa Monica, and the unlimited upside potential of an apartment building investment located in one of the most coveted rental pockets in the world.