A 38,264 square-foot office building in Downtown Santa Monica has hit the market with an asking price of $19.85 million, or about $518 per square foot. At just 30 percent occupied, the listing by Marcus & Millichap suggests the property, located at 701 Santa Monica Boulevard, could serve an owner/user or allow for potential upgrades to unoccupied spaces.
“One way for investors and employers to express their gratitude is to provide a workplace that their employees can be proud of. Demand for Trophy and Class A office space is on the rise. 701 Santa Monica fits that mold. Companies are prepared to pay the uplift for location, quality, and amenities. 701 Santa Monica Boulevard checkmarks all those categories. Consideration must be given to proper planning of the interior space for maximum employee engagement and productivity gains. The 70% vacancy of 701 Santa Monica Boulevard allows an investor or tenant the ability to improve the available areas to create a space that workers want to return to,” said Elliot Schwartz, senior westside commercial real estate specialist for Marcus & Millichap.
The current owner is an entity associated with 701 Santa Monica Boulevard LLC. Public records show that the limited liability company, which is affiliated with Lance W. Hool, was purchased in 1998. The three-story building was initially built several years prior in 1983 and contains 18,450 square feet of rentable space.
The building is currently occupied by several tenants, which include AT&T, Verizon, NEED Financial Services, and Dr. Cohen Brown, a board-certified and licensed medical doctor’s office.
With current tenants, the building offers a net operating income of $82,977. The property also comes with two cell towers from AT&T and Verizon which both have 2 percent annual increases.
Located along Santa Monica Boulevard, the property is near a large amount of retail and dining amenities, with the 3rd Street Promenade just a few blocks away. The building is also in close proximity to Santa Monica State Beach and the Santa Monica Pier. The nearby Interstate 10 also provides easy access to the rest of Los Angeles County.
Additionally, the region is heavily populated with approximately 419,973 people within a five mile radius of the property. The average household income within a five mile radius also averages $140,436 per year.
