35 Arcadia Ter 9 Unit Apartment Building $4,500,000 ($500,000/Unit) 5.33% Cap Rate Santa Monica, CA 90401

35 Arcadia Terrace is a very unique Apartment building located less than a block form the Beach and the Santa Monica Pier. The asset is a former hotel that was converted to nine legal units per the City of Santa Monica’s records. Every unit has been completely remodeled with new kitchens, bathrooms, floorings, millwork, etc. Extremely unique to small units in the City of Santa Monica, every unit has a split system HVAC unit as well as a washer and dryer in the unit. The exterior of the building has also been remodeled to give it a classic, but elegant look.
The property is located on Arcadia Terrace which is a small pedestrian way which is behind locked gates associated with the adjacent hotel, the Sea Blue Hotel, which provides a unique and elegant pedestrian courtyard as well as 24 hour monitoring and security. As you walk to the back of the courtyard, you will find a staircase which leads directly to the beach, secured by a locked gate that only residents of the few small buildings and the hotel have access to. There is no onsite parking for the building, but residents, with proof of their residency, can secure monthly parking passes at the city lot at the bottom of the rear staircase.
Eight of the Nine units are small, one bedroom, one bath apartments and one unit is a studio. Since the renovation, ownership has been operating the building for short term rentals to maximize the income. A short while ago, prior to them deciding to list the property for sale, they began converting the leases to long term rentals. 3 have been rented on a permanent basis and 6 will be delivered vacant, to be leased by new ownership for either short term rentals or long term rentals. The projected financials in this package are based on renting the units long term at the recently achieved rents.
The location is unmatched in the city, located between Ocean Ave and the Beach, less than one block from the Santa Monica Pier and the Santa Monica Promenade, which makes it ideal for both tourist rentals as well as permanent residents. Across the street from the famous Chez Jay and next to multiple hotels, restaurants, bars, and other shopping, the property is a once in a lifetime opportunity to an investor.