West Elm, Santa Monica
West Elm, Santa Monica
Marketing description
Newmark Pacific Capital Markets is pleased to present to qualified investors with the rare opportunity to acquire a core single tenant West Elm ("Property") in the exclusive Southern California coastal community of Santa Monica.
The Property is comprised of 24,705 square feet of improvements on a 0.38-acre parcel fronting 4th Street between Santa Monica Boulevard and Broadway. This core location is within the heart of Santa Monica’s commercial and pedestrian friendly district that includes the famous 3rd Street Promenade and Santa Monica Place, the primary shopping destination in the area. West Elm committed to a 12-year lease expiring in 2031 with 3% annual increases, providing a strong hedge against inflation. West Elm is a wholly owned subsidiary of Williams-Sonoma, Inc (NYSE:WSM), a $18.3 billion dollar market cap company with TTM revenues exceeding $8.7 billion. The West Elm lease is fully guaranteed by Williams-Sonoma, Inc, providing investors with ultimate security and stability.
Santa Monica is the most recognized and visited coastal communities in Southern California. It is home to a dense and diverse consumer base and daytime population. The outstanding demographic profile of this submarket includes 168,946 people with AHHI exceeding $184,000 within 3-miles and over 407,200 people with an AHHI exceeding $180,500 within 5-miles.
This is a very rare opportunity to acquire a core and credit single tenant asset in arguably one of the highest barriers to entry submarkets in Los Angeles.
Investment highlights
CORE LOS ANGELES RETAIL LOCATION
Located within the core retail district of Downtown Santa Monica
Downtown Santa Monica has drawn over 18.1 million visits and 5 million visitors over the last twelve months, a 37% increase over 2021 (Placer.ai). The closest comparison is Westfield Century City with 10.3 million visits and Rodeo Drive with 11.2 million visits in the same period
West Elm has significant frontage and identity along 4th Street, between Santa Monica Boulevard and Broadway
Notable adjacent tenants include Pottery Barn, Design Within Reach, Burke Williams, Target, Trader Joe’s, Nordstroms,
lululemon, AllSaints, Tesla, and Louis Vuitton
Santa Monica is known for being a primary tourist destination and welcomed an estimated 4.6 million tourists in 2023
HIGH CREDIT, SINGLE TENANT NNN
Lease corporately guaranteed by Williams-Sonoma, Inc (NYSE: WSM), an $8 billion revenue company carrying a market cap of $18 billion
Operating in 625 brick and mortar stores and internationally in 60 countries, the company is one of the largest multi-channel specialty retailers in the world. Notable brands operated by the parent company include West Elm, Williams Sonoma, Williams Sonoma Home, Pottery Barn, Pottery Barn Kids, PBteen, Mark & Graham, and Rejuvenation
DENSE & AFFLUENT TRADE AREA
Downtown Santa Monica has become the most populated coastal communities in California and home to some of the most notable tech and entertainment companies
Over 35,377 residents within a 1-mile radius with AHHI exceeding $164,000
Over 168,946 residents within a 3-mile radius with AHHI exceeding $184,000
Downtown Santa Monica welcomes consumers from Malibu, Pacific Palisades, Santa Monica, Venice Beach, & Brentwood
Santa Monica is a robust residential real estate market with home values averaging nearly $1,700,000 and current median listing price of $2,400,000
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