This is sample of an exclusive, off-market co-investment made by Paladin shareholders on 2/28/2014.

 

This was a  unique opportunity to acquire a well known, architecturally significant, value- add commercial real estate property in the famous beachfront community of Malibu, California.

 

 

LIST PRICE   

$ 6,200,000

 

TROPHY PROPERTY  

The three story landmark property is located on the hard corner of PCH at Kanan Dume Rd., a prominent, signalized traffic intersection, just north of Pepperdine University and the famous Malibu pier. The property offers high exposure, ground level space and two floors of built-out office suites with balconies.

 

 

TRUE VALUE-ADD OPPORTUNITY

The investment offers 'mark to market' rental upside and an opportunity to significantly increase rentable square footage and NOI through remodeling of the existing interior space & parking areas. Ownership is investing just over $1 million in capital and tenant improvements with a forecast valuation of $8.5 million in under three years (details upon request) and an anticipated investor yield exceeding 15% annualized.

 

 

BELOW MARKET RENTS, HIGH DEMAND

The current rent roll (65% economic occupancy) demonstrates a significantly lower rent level than current sub-market lease comps.  Most tenants are month-month. Sub-market retail and office space occupancy is in low to mid 90% range, with limited supply.

 

 

Market Retail Rents = $4.00- $5.00/SF/Month, NNN

Market Office Rents = $3.35- $4.00/SF/Month, MG