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 on schedule to commence construction in December 2020.
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.
Affordable and Efficient Living with Modern Suites
As our primary business plan, we have contracted with Common, Los Angeles’ market leading roommate centric residential property manager to brand, market, and operate the Project. The Project’s 27 units will contain 3 to 5 private bedrooms per unit with the majority of bedrooms enjoying a private bathroom. Residents will conveniently lease private bedrooms within the respective units, thus sharing the living room and kitchen with 2 to 4 vetted flat mates. This efficient, fully furnished living style provides residents the opportunity to live in a premier urban location at a substantial cost savings to traditional rental units.
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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 November 2020 to start construction by December 2020.