Beach City Capital has acquired 12757-12767 Mitchell Avenue, which contains 25 units across three existing multifamily buildings.
With current rents substantially below market, and a prime location near Venice Beach and Marina Del Rey surrounded by numerous office and retail opportunities on Washington Boulevard, the properties are excellent candidates for development. The average home sales price in Mar Vista has increased 83% from 2012 to 2016. The area continues to experience rapid growth with a large influx of high-income millennials and a growing work force of tech, media, aerospace and finance sector companies given the neighborhood’s convenient access to Los Angeles’ premier employment centers and amenities.
The Project’s site was acquired in Sept 2018 via a JV Partnership with the land owner. Beach City Capital will be building 27 apartment units on the property, and the Project is currently in the final stages of Plan Check with the Los Angeles Department of Building & Safety. The Project is in the final rounds of Plan Check and scheduled to have our permits ready in July 2021 to commence construction.
Mitigated Development Risk
The Project will consist of three floors of Type IIIA construction over a Type I podium with 57 at-grade parking stalls. The units will feature high-end finishes and enjoy luxury amenities including a large rooftop deck, game room, and courtyard. Investors will be protected by a GMP contract for any potential construction cost increases and we will use construction bonding to ensure the Project is completed. We have engaged national contractor TB Penick & Sons for pre-construction and as the General Contractor. Sponsor and TB Penick previously developed a Hyatt Place hotel together.
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Entitlements & Construction
The Project is offered with no entitlement risk as the site’s current zoning is R3-1, allowing 27 units by-right. As such, the Project is not subject to Planning Commission, City Council, or CEQA review. Additionally, because the Project is less than 49 units, the only step in the approval process is through the Los Angeles Department of Building & Safety for Plan Check. We expect to receive Building Permits in March 2021 to start construction thereafter.