Los Angeles Value-Add Mixed-Use Building | 32K VPD

Investment Highlights

• 5,400+ square foot mixed-use retail and office building
• 48% occupancy with short term leases and considerable rental upside
• Current rents average $3.45/SF, gross, well below market rent
• Ability to construct an additional 1,700 SF third floor rooftop space with 800 SF terrace
• Ideal ground floor unit sizes averaging 1,400 square feet
• 50’ of linear frontage along Fairfax Avenue
• Daily traffic counts exceeding 32,000 vehicles per day
• 500+ rental units under development within 1-mile radius of property

 

Offering Summary

Marcus & Millichap is pleased to present 355 N Fairfax Avenue, a 5,400+ square foot two-story value-add mixed-use retail and office building situated on 6,159 square feet of land ideally located along the esteemed Fairfax Avenue, just one block north of the Grove, in the dense and affluent Los Angeles, CA Fairfax District.

355 N Fairfax Avenue is currently 48% occupied. The first floor is completely vacant, and the second floor is currently occupied by tenants on short-term leases. This lease flexibility creates the opportunity for a value-add Buyer to immediately reposition the entire asset at market rent tenants or for an Owner-User Buyer the opportunity to occupy a portion or all the property. The two ground floor units average 1,500 square feet, ideal unit sizes that can cater to a variety of uses and attract top market rent with minimal improvement costs between tenancy.

The second floor is currently used by a medical tenant, Mission City Community Network, occupying 2,203 square feet. MCCN is a non-profit organization with 21 locations that offers medical, dental and mental health services for low-income families and medically underserved in Southern California.. The second tenant is a salon, which is using the remaining 346 square feet. The current rents average $3.45 per square foot, gross, significantly below current market rents.

A new owner can also enjoy the possibility of additional rentable building area. Plans have been drawn up to enclose the roof, creating a third floor and adding an additional 2,000 square feet of rentable space beside an 800 square foot terrace overlooking Fairfax Avenue and Mid-Wilshire’s city skyline. After construction, the prospective third floor’s open floor plan will cater to a variety of uses including creative office tenants looking for unique space or a rooftop restaurant/bar with great views. The property is currently zoned C2-1VL with a Transit Oriented Community (TOC) Tier 3 designation.

355 N Fairfax Avenue benefits from excellent visibility and frontage along highly trafficked Fairfax Ave, a major north/south thoroughfare and commercial corridor that connects the 10 Freeway to the South with West Hollywood’s Sunset Boulevard to the North, with approximately 50’ of linear frontage. The Avenue has daily traffic counts exceeding 32,000 vehicles per day. The site offers 9 surface parking spaces in the rear, which is rare in the Fairfax District, and a walk score of 97 (a “Walker’s Paradise”).