Retail
HHLA

HHLA 6081 Center Dr.
Los Angeles, CA 90045

  • Unpriced

    Asking Price

  • $6,856,222

    NOI

  • 240,437

    Square Feet

  • 4.60

    Acres

  • Multi

    Tenancy

  • 89%

    Occupancy

Offering Summary

Address

  • 6081 Center Dr.
    Los Angeles, CA 90045

Pricing

  • Asking PriceUnpriced
  • NOI$6,856,222

Details

  • Property TypeRetail
  • Listing StatusOn Market
  • Square Feet240,437
  • Occupancy89%
  • Year Built2000
  • Year Renovated2019
  • Acres4.60
  • TenancyMultiple
  • Lease TypeNNN

Address

  • 6081 Center Dr.
    CA 90045

Pricing

  • Asking PriceUnpriced
  • NOI$6,856,222

Details

  • Property TypeRetail
  • Listing StatusOn Market
  • Square Feet240,437
  • Occupancy89%
  • Year Built2000
  • Year Renovated2019
  • Acres4.60
  • TenancyMultiple
  • Lease TypeNNN

Description

INVESTMENT SUMMARY

Newmark Capital Markets is pleased to present to qualified investors, the opportunity to acquire the newly renovated HHLA (the “Property”). Located in the heart of the Lower Westside market, HHLA is comprised of 240,437 square feet of entertainment and experiential based retail that is currently 88.6% leased to tenants such as Cinemark, Starbucks, Buffalo Wild Wings, Islands, Dave & Busters, and Kabuki. The Property was significantly remodeled in 2019 with the current ownership investing over $35 million into capital enhancements to modernize the project and position it for long-term success.

Prominently located along the 405 Freeway with over 1,200 feet of frontage and over 383,500 Average Annual Daily Traffic (“AADT”). The potential to add significant value by implementing a sign program alongside the east side of the buildings and parking structure. HHLA is the retail and entertainment epicenter of Playa District,  a 70-acre live-work-play community owned and operated by EQ Office, a Blackstone company. Formerly known as the Howard Hughes business campus, Playa District is home to companies such as Universal Studios, Univision, Sony, Pepperdine University, and luxury residential projects Altitude & Modera West LA. The surrounding Playa Vista, Silicon Beach, El Segundo, and Culver City submarkets are home to LA’s burgeoning tech and sports scene with companies such as Apple, Amazon, Google, YouTube, Meta, EA, Fox Sports, Yahoo, Los Angeles Lakers, Los Angeles Chargers, Los Angeles Kings and Los Angeles Clippers all having significant operations and presence within 3 miles of the Property. This built-in 24/7 consumer base provides the ultimate opportunity to merchandise and stabilize HHLA for long-term success.

INVESTMENT HIGHLIGHTS

  • Value-Add, Significant Revenue Growth Potential
  • Prominent Infill Los Angeles, Freeway Fronting Location
  • Strong Leasing Momentum
  • Full Renovation, New Capital Improvements 
  • Experiential & Exclusive Tenant Mix

Value-Add Opportunity, Significant Revenue Growth
Flexible site-plan, ample parking, and near-term expirations provide the ability to further enhance the tenant mix at market rents
 
Owner-User Potential
Ability to potentially unlock large blocks of space provides an owner-user with an opportunity to create the ultimate Lower Westside corporate campus within the Culver City and Silicon Beach sphere of influence

Development Options (1)
Flexible C2-1 zoning designation allows for a wide variety of commercial and multi-family uses 
  • With the growing trend of alternative uses in large retail projects and the Property’s ideal location, HHLA could attract alternative uses such as sound stages, e-sports/gaming, and residential
  • Current zoning rules could allow for increased density on the site. Current “base” zoning would allow a maximum of ±365,000 square feet of aggregate floor area to be developed. Existing “base” zoning regulations would authorize up to approximately 609 residential units

Signage Program (2)
Property currently consists of ten (10) freeway visible sign panels specific to HHLA. Ownership has conducted studies alongside media companies to leverage the internal and external signage potential. This could include four (4) freeway signs, one (1) LED, and seven (7) digital signs in partnership with a 3rd party company while ownership manages the balance of the existing freeway panels.. This program and profit-sharing program could enhance the gross revenue upwards of $500,000 with minimal out of pocket expenses (see Page 20). Tenants Genio and 60OUT have commitments with the current ownership for freeway signage

Parking Revenue Potential
HHLA has an abundance of parking that has endless potential. With access to 2,019 parking stalls, current ownership conducted a detailed parking study that yielded very favorable revenue projections of nearly $3,500,000 in Year 5

(1) Any new development is subject to the Development Agreement and CC&R’s currently governing the property.
(2) All signage and media must adhere to the Owners Association’s rules and approval process

Prominent Infill Los Angeles, Freeway Fronting Opportunity

Core Location
HHLA presents an investor or owner-user the opportunity to acquire a prominent Lower Westside Los Angeles & South Bay location

Freeway Fronting
Significant visibility alongside the 405 Freeway with over 1200’ of frontage and over 383,500 Annual Average Daily Traffic (“AADT”). Leveraging this visibility could significantly enhance future revenues or provide market identity for a User

Epicenter of Playa District
Playa District is a synergistic live-work-play environment that includes over 8 million square feet of mixed-use lifestyle driven commercial and 921 luxury residential units with another 1,144 units under construction or being entitled

Regional Location
Convenient access to major freeways and the communities of Culver City, Manhattan Beach, El Segundo, Venice Beach, Marina Del Rey, and Playa Vista
Leasing Momentum, Full Renovation

New Capital Improvements 
Over $35 million of capital improvements finished in 2019 that included a full façade refresh, re-branding of the property, hardscape, and landscape. These improvements will reduce immediate capital requirements of a new owner and attract new tenants at market rents

Strong Leasing Activity & Rent Growth
  • Current ownership has leased over 25,000 square feet in the last twelve months  
  • Los Angeles has seen steady rent growth of 3.6% YOY while average sub-market rents have climbed to $61.64 per square foot
  • Market vacancy has been trending downward and is currently 5.2% with a positive 12 month net absorption of over over 837,000 square feet 
Experiential & Exclusive Tenant Mix
  • Recent leasing includes 60 Out Escape Rooms & Genio’s Muhammed Ali Experience – both significant traffic generators appealing to both domestic and foreign tourists
  • Cinemark operates 18 screens including the large format XD screen at HHLA, the largest theatre within a 10-mile radius

Deal Team

Bill Bauman

Bill Bauman

Vice Chairman

213-298-3593 bill.bauman@nmrk.com

CA RE Lic. #00969493

Kyle Miller

Kyle Miller

Executive Managing Director

310-227-0826 kyle.miller@nmrk.com

CA RE Lic. #01716644