With interest in the Los Angeles’ South Bay office market continuing its recent positive trends, a mixed-use office and retail 24,256-square-foot Montoro Plaza property has hit the market recently with the asking price of $12 million or approximately $495 per square foot. The asset is located at 901 North Pacific Coast Highway in Redondo Beach on nearly one acre of land.
Michael Talbot of RE/MAX Estate Properties in Palos Verdes Estates is a broker marketing the property for sale. A request for comment was not answered by the time of this publishing.
The collection of three 2-story class B buildings was originally built in 1987, and a number of renovations were also completed more recently in 2019. The property’s eight tenants include an executive office, medical office, and restaurant occupiers, with 4,200 square feet of ocean-view office space available on the second floor. The current occupancy is around 84 percent, which produces a cap rate of 3.71 percent and a net operating income of $444,885 annually, according to the offering document. There is potential for value-add in the property if occupancy can be increased to 100 percent. That would deliver a pro-forma net operating income that could be as high as $647,541 per year, according to some revenue scenarios in the marketing document.
The property also offers 110 on-site parking spaces, which are available on a subterranean level as well as public curbside parking on Herondo Street. As the address suggests, the property is located directly on California State Route 1, with easy transportation links nearby. It is also close to the many restaurants and small businesses, the Esplanade in Redondo Beach, the Strand in Hermosa Beach and Manhattan Beach.
As The Registry had previously reported, the largest recent sale of office space in the proximate area was the 126,219-square-foot Airport Plaza in Long Beach that JL Realty Partners purchased for $29 million or roughly $230 per square foot. Other significant recent sales include the Bullocks Building located at 800 South Hope Street, which Verizon purchased for $130 million or approximately $537 per square foot; Harbor Associates purchased the 308,000-square-foot 6922 Hollywood Blvd portfolio for $96 million or $310 per square foot; and the Village Green Office Park was purchased by Lindero Middle LLC for $40 million or $398 per square foot.
