An automotive dealership in the heart of Universal City has recently hit the market with an asking price of $79.69 million, or approximately $464 per square foot. According to an offering memorandum obtained by The Registry, the property is fully occupied by Nissan, which currently has 21 years remaining on its lease.
Located at 3500-3620 Cahuenga Boulevard on nearly five acres of land, property records show that the building is owned and operated by Nissan’s parent company, Trophy Automotive Dealer Group. The automotive dealer group purchased the property for an undisclosed amount in 2007, two years after it was initially built.
According to the offering memorandum, the Universal City location currently has 21 years of its remaining lease term with built-in 15 percent rental increases every five years. Due to these increases, the net operating income is projected to grow approximately 21 percent in the next 10 years. Current lease terms call for a $323,063 monthly rental rate.
While tentated for many years by Nissan, the offering memorandum shows that the property could also serve as a prime redevelopment opportunity due to its high-traffic location in North Los Angeles. As of most recent data in 2019, the area saw approximately 9.15 million visitors. Daily, the area sees more than 277,290 motorists.
“While Universal City Nissan will very likely remain at this location long-term given its success, the property presents an excellent redevelopment opportunity given its current C2 zoning which allows for a mix of commercial and residential,” the offering memorandum states.
Located along State Road 101, the Universal City property is in close proximity to both Universal Studios and its neighboring theme park. Near both Studio City and Hollywood, the area is also home to popular studio and entertainment facilities, including Warner Brother Studios, the Walt Disney Studios, CBS TV Studios and more.
As well as its many studios, the region is home to a dense population. According to the offering memorandum, more than 193,200 people reside within a three mile radius of the property with annual household incomes averaging more than $124,600. In a five mile radius of the property, the population is approximately 661,400, with an average household income of $113,700.
The property is being listed by CBRE, which did not respond in time to comment on this story.
