500 Pacific Coast Highway

Highlights:

• Irreplaceable Coastal Hard Corner on Pacific Coast Highway (PCH) Situated at the signalized intersection of Pacific Coast Highway and 5th Street in Hermosa Beach, this property commands one of the most coveted retail positions along the South Bay coastline. The hard corner provides full ingress/egress from both PCH and 5th Street, maximizing tenant accessibility and visibility with 58,624 cars per day.
• Rare On-Site Parking Along Pacific Coast Highway (PCH) The property features approximately nineteen (19) dedicated parking stalls accessible from both the front (PCH) and rear of the building. On-site parking is extremely scarce for retail properties along PCH in Hermosa Beach, providing a significant competitive advantage for tenants and a meaningful value driver for ownership.
• High Barriers to Entry in a Premier Coastal Trade Area Hermosa Beach is a one-point-four-three (1.43)-square-mile beachfront community with virtually no developable land for new retail along PCH. Constrained supply protects long-term values and enhances scarcity premium.
• 100% Occupied with Immediate, Stabilized Cash Flow Fully leased to four (4) tenants operating under NNN lease structures, delivering predictable income with minimal landlord management responsibility. In-place NOI is approximately $201,624 annually.
• Michelin-Recognized Anchor Tenant with New Five (5)-Year Lease Baran’s 2239, the anchor tenant at 502 PCH, recently executed a brand-new five (5)-year lease extension through February 2031. Baran’s is a nationally acclaimed fine-dining restaurant that has earned multiple Michelin Bib Gourmand distinctions (2018–2023) and maintains a devoted local and regional following. The new lease includes five percent (5%) annual rent increases.
• Built-In Rental Growth: 3%–5% Annual Escalations Every lease contains contractual annual rent increases ranging from three percent (3%) to five percent (5%), providing a compelling inflation hedge and consistent year-over-year NOI growth.
• Diverse, Internet-Resistant Tenant Mix Tenants include a Michelin-recognized restaurant (Baran’s), a neighborhood nail salon (Dream Nails), a specialty retail shop (Purple Haze Smoke Shop), and a popular taco restaurant (Tacos El Goloso). All provide essential, in-person services resistant to e-commerce disruption.

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