15,110 SQFT Office Building in Santa Monica on Market, Guidance Pricing Set at $11.5MM

Santa Monica, Lee & Associates, Broadway Capital Partners, Mojo Music, Rizap Inc., Santa Monica Media District, Hulu, Universal Music, Illumination Entertainment, Lionsgate Films and HBO

By Catherine Sweeney 

A multi-tenant office property in Santa Monica has recently been listed for $11.5 million, or approximately $761 per square foot. According to a listing for the property by Lee & Associates, the 15,110 square-foot building offers investors the chance to acquire it as is but would also serve a potential owner-operator. 

Located at 1617 Broadway on less than an acre of land, the Class A office property was built in 2002 and offers tenants a variety of amenities. According to public records, the property is currently owned by an entity associated with Broadway RJT LLC, which acquired it in 2018 for $10.65 million.

Brad McCoy, a leasing agent with Lee & Associates, said the property is newly renovated and includes two full floors of creative office including a newly renovated penthouse that includes over 1,000 square feet of exclusive outdoor balconies. 

“There are also four, live-work units of 1,400 square feet each on the ground floor. The building has 32 secure, subterranean parking spaces…and can be occupied by an owner-user or an investor could achieve a 5.7 percent pro forma cap rate,” McCoy said. 

According to the offering memorandum, the second and third floors are vacant while the four ground-floor live-work units are fully leased to tenants such as Broadway Capital Partners, Mojo Music and Rizap Inc., among others. 

For 2022, annual rent revenue comes out to $751,452, with current tenants paying an average $3.30 per square foot each month.

The property is located in the heart of the Santa Monica Media District, which is home to major media brands like Hulu, Universal Music, Illumination Entertainment, Lionsgate Films and HBO. The property is also near a variety of retail assets, including the Santa Monica Co-Op, which is just across the street. In addition, the property is just one block from the 17th Street Expo Platform and a short drive away from Interstate 10. 

Overall, Santa Monica is home to a population of approximately 93,000, with an average of 250,000 visitors throughout the day. Through tourism, the city attracts approximately eight million visitors per year.Tourism is one the city’s top industries attracting over 8 million visitors annually. 

“Santa Monica is a beach side city spanning 8.3 square miles located on the westside of Los Angeles County,”  the offering memorandum states. “With 3.5 miles of pristine coastline, Santa Monica offers a mix of natural beauty, tree lined residential communities, booming commercial districts and a variety of recreational activities. A diverse business economy and an unparalleled quality of life, prove Santa Monica to be an incomparable destination to both live, work or visit.”