LUX | Urban — Private Investment Opportunity

Private Investment Opportunity · Santa Monica, California

LUX|Urban

Westside Los Angeles · Promenade District · Steps from the Pacific

Code Name — LUX | Urban  ·  Address disclosed upon CA execution
40Residential Units
3Retail Tenants
2013Year Built
5Stories
52,954Building SF
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The Long View

Santa Monica Does Not
Go Backward. It Compounds.

Every decade, a new economic wave absorbs into the Santa Monica fabric and raises the floor. This is not a cyclical story — it is structural, driven by geography, policy-enforced scarcity, and the relentless accumulation of high-income employers who insist on being here.

A Supply Constraint That Cannot Be Legislated Away

Santa Monica has maintained strict height limits, coastal overlay restrictions, and one of the most active neighborhood opposition cultures in California for four decades. The pending pipeline of over 1,300 requested units is administrative activity — not delivery. In the trailing 12 months through Q1 2026, the submarket delivered just 89 units. Against a demand base of 47,000+ existing units and sustained population growth, that number tells you where rents go from here.

89 Units delivered — trailing 12 months, SM submarket

Technology, Space & AI — The New Employment Floor

The Westside tech economy has matured beyond entertainment adjacency. SpaceX in Hawthorne, Snap in Venice, Google and Meta along Wilshire, and a dense network of AI-native startups from Santa Monica to Culver City now provide the high-income employment base that fills luxury apartments. Engineers, researchers, and product leaders earning $150,000–$400,000 are the target renter — and their employers are not moving.

$3,827 Average effective rent — SM / Marina del Rey, Q1 2026

The Ocean & Mountain Duality — A Geographic Monopoly

No coastal city in California pairs walkable Pacific access with immediate mountain proximity the way Santa Monica does. The Santa Monica Mountains begin at the city's northern edge. The beach is under half a mile from LUX|Urban's front door. This lifestyle proposition commands a documented 15–25% premium over comparable inland product and has held across every market cycle since the 1990s. Geography does not depreciate.

95.3% LA Metro multifamily occupancy — Q1 2026

Entertainment, Talent & Creative Capital

CAA, UTA, and WME all maintain Santa Monica presences. Major streaming platforms, independent studios, and post-production infrastructure have consolidated on the Westside as the creative economy migrated from Hollywood proper. The creative executive earning $250,000–$1M+ in total compensation represents the high-water mark of Santa Monica's renter demand — consistently occupying the $4,500–$6,000/month tier.

3.8M Annual visitors to Santa Monica from outside LA County

Film & Production — State Reinvestment as a Structural Driver

California's expanded production tax credit program has drawn back major studio shoots, streaming originals, and post-production pipelines that had migrated to Georgia, New Mexico, and Canada over the prior decade. The result is a growing base of production professionals — directors, writers, cinematographers, post-production supervisors, and studio executives — returning to Los Angeles and re-entering the premium rental market. Santa Monica is the primary beneficiary. This is not a single-season dynamic. It is a multi-year repatriation of high-income creative talent to a market that cannot build fast enough to meet them.

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The Asset

A Fully Realized Mixed-Use Building
at the Center of It All

LUX|Urban is a 40-unit luxury residential building with three income-producing ground floor tenants — a coffee shop, a café, and a credit union anchor — occupying the most visible commercial position adjacent to the Third Street Promenade. Address and full property details are disclosed upon CA execution.

40Residential Units — 2nd Through 5th Floor

11 units on 2nd, 10 on 3rd, 10 on 4th, 9 on 5th. One and two bedroom configurations throughout — each with private patio or deck.

20–30%Larger Than Competing Luxury Properties

Well-laid-out floor plans average 805 SF (1BR) and 1,009 SF (2BR). Verified against comparable product in the submarket.

44,075Residential Rentable SF

Private patios and decks from 53 to 300+ SF per unit — not counted in unit square footage.

3Ground Floor Income Producers — NNN

Coffee shop, café (both new tenants), and credit union bank (option renewal). NNN leases with expense reimbursements — income layered below residential.

8,794Retail & Commercial SF

Street-activating retail and café storage. Credit union anchor provides institutional-grade tenancy at the base.

3Subterranean Parking Levels

~75 spaces. EV charging. Controlled access. Significant parking income upside at $150/space/month.

Location

Steps to Dining,
Entertainment, and the Pacific.

LUX|Urban is walking distance to the 3rd Street Promenade — one of the nation's highest-traffic retail and entertainment corridors — and to the Pacific Ocean. Expo Line connects to Downtown LA in under 46 minutes. The renter this location attracts does not negotiate on geography.

Walkable dining, galleries, boutiques, farmers' markets, and entertainment surround the building in every direction. For the tenant choosing LUX|Urban, this is not just an apartment — it is the cost of entry to a specific version of Westside life.

Building Amenities

Every Unit Built
to Hold Premium Rent

  • In-unit full-size washer & dryer
  • Central HVAC in every unit
  • Caesarstone countertops throughout
  • Stainless steel appliances
  • Private patios & decks — all units
  • Double-paned windows
  • European glass shower enclosures
  • Custom solar / privacy shades
  • Vinyl plank and ceramic tile flooring
  • Ice makers & filtered water
  • Mountain, city, or partial ocean views*
  • Dual master bedrooms available*
  • Keyless entry & controlled access
  • EV charging on P1 level
  • 50+ secure bike storage spaces
  • Open-air landscaped courtyard
  • Upscale lobby with skylights
  • Fiber internet (Verizon, AT&T, Spectrum)
  • 7 storage lockers — 100% occupied
  • Pet-friendly (cats & dogs under 30 lbs)

*In select units only.

"The ground floor income — coffee shop, café, and a bank — adds a layer of revenue stability that pure residential cannot offer."

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Unit Rent Roll

40 Residential Units.
Three Ground Floor Income Producers.

Six units carry subsidized compliance rents and are modeled as flat throughout the hold — no growth, no turnover assumed. Market-rate units shown at current pricing. Click each floor to expand the rent detail.

UnitTypeSFMonthly RentAnnual Rent$/SF/MoNotes
100Retail2,250$11,588$139,050$5.15Coffee Shop — New Tenant
120Retail2,844$16,595$199,135$5.84Café — New Tenant
130Storage566$824$9,888$1.46Café Storage
150Retail3,134$21,160$253,915$6.75Credit Union Bank — Option Renewal
Retail Subtotal$50,166/mo$601,988—+ Expense Recoveries: $170,440/yr
UnitTypeSFPatio SFMonthly RentAnnual Rent$/SF/MoNotes
2012+292162$1,733$20,796$1.88Subsidized — Flat / No Growth
2022+291862$3,902$46,824$4.25Market Rate
2032+21,12856$4,794$57,528$4.25Market Rate
2041+187750$3,946$47,352$4.50Market Rate
2051+162266$2,799$33,588$4.50Market Rate
2061+172750$3,272$39,264$4.50Market Rate
2071+186675$3,897$46,764$4.50Market Rate
2082+21,180277$5,015$60,180$4.25Market Rate
2091+1838113$0$0—Manager Unit — Flat / No Growth
2101+1835300+$3,758$45,096$4.50Market Rate — Oversized Patio
2111+1827155$3,722$44,664$4.50Market Rate
UnitTypeSFPatio SFMonthly RentAnnual Rent$/SF/MoNotes
3012+292162$1,014$12,168$1.10Subsidized — Flat / No Growth
3022+291862$3,902$46,824$4.25Market Rate
3032+21,018115$4,326$51,912$4.25Market Rate
3041+1823236$3,704$44,448$4.50Market Rate
3061+1674236$3,033$36,396$4.50Market Rate
3071+184175$3,784$45,408$4.50Market Rate
3082+21,180114$5,015$60,180$4.25Market Rate
3091+183883$3,771$45,252$4.50Market Rate
3101+183677$3,762$45,144$4.50Market Rate
3111+182769$3,722$44,664$4.50Market Rate
UnitTypeSFPatio SFMonthly RentAnnual Rent$/SF/MoNotes
4012+292162$1,818$21,816$1.97Subsidized — Flat / No Growth
4022+291862$3,902$46,824$4.25Market Rate
4032+21,01653$4,318$51,816$4.25Market Rate
4041+182056$3,690$44,280$4.50Market Rate
4061+167556$3,038$36,456$4.50Market Rate
4071+184375$3,794$45,528$4.50Market Rate
4082+21,180114$5,015$60,180$4.25Market Rate
4091+183883$3,771$45,252$4.50Market Rate
4101+183777$1,700$20,400$2.03Subsidized — Flat / No Growth
4111+182769$3,722$44,664$4.50Market Rate
UnitTypeSFPatio SFMonthly RentAnnual Rent$/SF/MoNotes
5012+292162$1,850$22,200$2.01Subsidized — Flat / No Growth
5022+291862$3,902$46,824$4.25Market Rate
5032+21,080250$4,590$55,080$4.25Market Rate
5061+173350$3,298$39,576$4.50Market Rate
5071+184775$3,812$45,744$4.50Market Rate
5082+2790114$3,700$44,400$4.68Market Rate (Current Lease)
5091+183883$3,771$45,252$4.50Market Rate
5101+183790$3,766$45,192$4.50Market Rate
5111+182769$3,722$44,664$4.50Market Rate
RESIDENTIAL TOTAL — 40 UNITS$140,050/mo$1,680,600/yr$3,826 avgper unit / month
RETAIL TOTAL — NNN (incl. storage)$50,166/mo$601,988/yr—+ $170,440 Recoveries

Subsidized units (201, 209, 301, 401, 410, 501) are modeled flat throughout the hold — no growth, no turnover assumed. This is conservative; natural turnover would convert these to market rate at buyer's election.

Rental Competitive Analysis

Where LUX|Urban Stands
in the Real Rent Stack

Face rents are the opening position, not the closing number. Once you adjust for concessions — which the downtown Santa Monica lease-up set is running at 6–9 weeks free — the subject's net effective position is competitive against assets asking materially more on paper.

PropertyDist. to Ocean1BR Asking2BR AskingConcessionEst. Eff. 1BREst. Eff. 2BRPosition
LUX | Urban (Subject)~0.45 mi$3,500–$4,800$4,500None$3,500–$4,800$4,500Subject — no discount applied
Residences on 3rd St Promenade~0.35 mi$4,295+$5,995+1 mo free on select leases~$3,937+~$5,495+Beach / retail premium comp
The Park Santa Monica~0.55 mi$5,039–$6,533$7,001–$9,1198 weeks free~$4,199–$5,444~$5,834–$7,599Luxury ceiling; amenity heavy
Sway, 525 Broadway~0.55 mi$4,281–$5,495$4,670–$9,506Up to 8 weeks free~$3,568–$4,579~$3,892–$7,922Most relevant new-supply pressure
Riva, 1410 5th St~0.60 mi$3,087–$10,005 (1–3BR)—None foundUnit-by-unit basis—Lifestyle comp
Willow Santa Monica~0.70 mi~$4,002~$5,856–$7,256None found~$4,002~$5,856–$7,256Wilshire-Montana comp
Broader SM market: ~$2,959 avg 1BR / ~$3,879 avg 2BR (citywide). SM / MdR submarket: $3,827 avg effective rent at 4.6% vacancy (Q1 2026, realfimodel.com). LUX|Urban is a downtown-premium asset, not a citywide-average comparison.

The Honest Rent Read

LUX|Urban is not underpriced on 1-bedrooms against broad Santa Monica averages — it is defensible against downtown luxury comps once concessions are stripped out. The pressure is on the 2BR side, where newer Broadway product shows a higher face rent but buys demand with up to 8 weeks free, pulling effective rents back toward the subject. Carry a 1BR real rent of $3,650–$4,250 depending on size, floor, and view. The $4,800 ask is achievable for larger or premium-view units. For the 2BR, carry $4,450–$4,750 real rent before parking and utility adjustments. The subject's $4,500 2BR looks competitive against the newer luxury set; the real test is whether prospects compare it to Sway's smaller 2BR entry point after concessions are applied.

5-Year Investment Model

The Numbers Behind
Five Years of Compounding

Year 1 reflects current rent roll. Market-rate residential rents grow at 2.5% annually from Year 2. Retail at 3% CPI. Subsidized unit rents are held flat — no growth, no turnover — throughout the hold. Property taxes of $437,500 in Year 1 grow at 2% annually per Prop 13.

$2.60MYear 1 Potential Gross Revenue
$1.51MYear 1 Net Operating Income
$1.68MYear 5 NOI (projected)
$437,500Year 1 Real Estate Taxes

Market Leasing Comps — Year 2 Base & Growth

$3,500 / 1BR and $4,500 / 2BR — Year 2 Stabilized Base

Unit TypeYear 1Year 2Year 3Year 4Year 5
1BR Market Rent$3,500$3,588$3,677$3,769$3,862
2BR Market Rent$4,500$4,613$4,728$4,846$4,967
Grown at 2.5% annually. Applied to all 34 market-rate units.

Subsidized Units — Held Flat Throughout Hold

Six Units. Modeled Conservative.
Natural Turnover = Unmodeled Upside.

UnitType / SFCurrent RentMarket RentModel Treatment
2012+2 / 921 SF$1,733/mo$4,500+/moFlat — subsidized, no growth
3012+2 / 921 SF$1,014/mo$4,500+/moFlat — subsidized, no growth
4012+2 / 921 SF$1,818/mo$4,500+/moFlat — subsidized, no growth
4101+1 / 837 SF$1,700/mo$3,500+/moFlat — subsidized, no growth
5012+2 / 921 SF$1,850/mo$4,500+/moFlat — subsidized, no growth
2091+1 / 838 SF$0/mo$3,500+/moFlat — manager unit, no growth
These six units are modeled conservatively as permanent. Natural turnover converting any to market rate represents unmodeled NOI upside that accrues to the buyer with zero additional capital.

5-Year Pro Forma

Line ItemYear 1Year 2Year 3Year 4Year 5
GROSS REVENUE
Potential Gross Revenue (all sources)$2,596,428$2,665,201$2,735,809$2,808,301$2,882,729
Vacancy & Credit Loss (5.5% residential)($92,433)($94,744)($97,112)($99,540)($102,029)
Effective Gross Revenue$2,503,995$2,570,457$2,638,696$2,708,761$2,780,700
FIXED EXPENSES
Real Estate Taxes (+2%/yr, Prop 13)($437,500)($446,250)($455,175)($464,279)($473,565)
Insurance($52,800)($54,384)($56,016)($57,696)($59,427)
Utilities (Common Area)($52,000)($53,560)($55,167)($56,822)($58,526)
Total Fixed Expenses($542,300)($554,194)($566,358)($578,797)($591,518)
VARIABLE EXPENSES
Payroll / On-Site Management($168,000)($173,040)($178,231)($183,578)($189,085)
Management Fee (5% EGR)($125,200)($128,523)($131,935)($135,438)($139,035)
General Building / Repairs($36,000)($37,080)($38,192)($39,338)($40,518)
Cleaning / Janitorial($32,000)($32,960)($33,949)($34,967)($36,016)
Plumbing / Mechanical($20,000)($20,600)($21,218)($21,855)($22,510)
HVAC Maintenance($18,000)($18,540)($19,096)($19,669)($20,259)
General & Administrative($28,000)($28,840)($29,705)($30,596)($31,514)
Parking Operations($12,000)($12,360)($12,731)($13,113)($13,506)
Elevator Service Contract($14,400)($14,832)($15,277)($15,735)($16,207)
Total Variable Expenses($453,600)($466,775)($480,334)($494,289)($508,650)
Total Operating Expenses($995,900)($1,020,969)($1,046,692)($1,073,086)($1,100,168)
NET OPERATING INCOME$1,508,095$1,549,488$1,592,004$1,635,675$1,680,532
LEASING & CAPITAL
Retail Leasing Commissions (7% of 3-yr lease value, Yrs 1 & 4)($126,417)($0)($0)($138,140)($0)
Capital Reserves ($250/unit/yr)($10,000)($10,000)($10,000)($10,000)($10,000)
CASH FLOW BEFORE DEBT SERVICE$1,371,678$1,539,488$1,582,004$1,487,535$1,670,532
Assumptions: Market-rate residential rents grow 2.5% annually from Year 2. Subsidized units flat throughout. Retail at 3% CPI. Property taxes $437,500 Year 1 +2%/yr (Prop 13). Vacancy 5.5% residential only. Management at 5% EGR. All variable expenses at 3% annual growth. Capital reserves $250/unit/yr. Retail leasing commissions at 7% of 3-year lease value at Years 1 and 4. Verify against current leases, tax bill, and property condition assessment.

Residual Valuation

Terminal Value Range:
$31.5M — $40.0M

Exit values derived from Year 5 NOI at three cap rate scenarios.

ScenarioExit Cap RateYear 5 NOIYear 5 Terminal Value
Base Case4.5%$1,680,532$37,345,156
Conservative5.0%$1,680,532$33,610,640
Stress / Floor5.25%$1,680,532$32,010,133
Stated range of $31.5M–$40.0M reflects stress to base case exits. All residuals are before debt paydown and financing benefit. Subsidized unit upside (~$180,948/yr embedded spread vs. market) is excluded — unmodeled optionality to buyer.

Los Angeles & Santa Monica

Why Here. Why Now.
The Economic Case for the Westside.

Santa Monica is not a market that requires a thesis. It requires a position. The economic drivers that sustain rental demand here — and that have sustained it through every rate cycle, pandemic, and correction of the past four decades — are structural, not cyclical.

The Knowledge Economy at Scale

Over 54% of Santa Monica residents 25 and older hold a bachelor's degree or higher. Approximately 60% work in managerial or professional occupations. This is the demographic that rents premium product, pays on time, and values location above price.

Technology & the New Economy

Snap, Google, Meta, and a dense network of AI-native companies from Santa Monica to Culver City have matured into a persistent employment engine. AI engineers and data scientists with $180,000–$400,000 in total compensation are the core Class A renter. They are not leaving.

Aerospace, Space & Defense

SpaceX, Relativity Space, the Aerospace Corporation, and dozens of defense-adjacent technology companies operate within a 12-mile radius. This sector draws engineering talent that skews younger, higher-earning, and decidedly urban in lifestyle preference.

Entertainment, Talent & Creative Capital

CAA, UTA, and WME all maintain Santa Monica presences. Major streaming platforms, independent studios, and post-production infrastructure have consolidated on the Westside. The creative executive earning $250,000–$1M+ is the consistent occupant of the $4,500–$6,000/month tier.

Health, Wellness & Longevity

Santa Monica has become a global node for the wellness economy — longevity medicine, biohacking, and digital health startups are clustered here. This sector draws affluent, health-conscious professionals who price ocean proximity and walkability into their rent decision.

Tourism & the 3.8M Visitor Economy

Santa Monica attracts 3.8 million visitors annually from outside LA County. This visitor base sustains the retail, dining, and entertainment ecosystem that underpins the ground-floor income at LUX|Urban. The coffee shop, café, and credit union benefit directly.

Investment Thesis

Why LUX|Urban.
Why Now.

A stabilized, well-located mixed-use building in the most supply-constrained coastal market in the country, with embedded optionality that requires no renovation, no repositioning, and no lease-up risk.

The Structural Case

  • 2013 construction — none of the deferred maintenance risk in older SM product
  • Three NNN ground-floor tenants provide institutional-grade income below the residential base
  • Units 20–30% larger than competing luxury product — a lasting competitive advantage
  • Zero concessions required — while comps give away 8–9 weeks of free rent
  • Parking at $150/space is near-term upside with no capital required
  • Storage 100% occupied, waiting list — revenue line not yet optimized

The Compounding Upside

  • Subsidized units modeled flat — natural turnover converts each to market rate permanently, with zero capital and full NOI step-up accruing to buyer
  • 2.5% annual residential rent growth is conservative against SM's historical performance
  • Retail renewals at market provide structured income step-ups
  • Film and production reinvestment in California is driving multi-year repatriation of high-income creative talent to the Westside
  • Terminal value range of $31.5M–$40.0M reflects stress and conservative exits — base case at 4.5% cap produces $37.3M at Year 5

Confidentiality Agreement

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Prepared by Real Estate Services for informational purposes only. Does not constitute an offer to sell, solicitation to purchase, or investment advice. Financial projections are illustrative and based on stated assumptions. All investors should conduct independent due diligence prior to any investment decision. Market data sourced from realfimodel.com research and publicly available sources as of May 2026. Property tax estimates should be verified with the Los Angeles County Treasurer and Tax Collector. © 2026 Real Estate Services · www.realfimodel.com · CA DRE #01403368