Wayco — Venice / Abbot Kinney

Confidential

1041-1043 Abbot Kinney Blvd · Venice, CA 90291

GWC Advisory · Acquisition Target

Venice / Abbot Kinney

1041-1043 Abbot Kinney Blvd · Venice, CA 90291

Portfolio Price$17.2M

Total Bldg SF6,548 SF

Total Land SF11,542 SF

Blended Cap3.24%

1043 AK: 6.0% cap (stabilized) · 1041 AK: value-add / land play (no cap attributed)

Executive Summary

Portfolio Price

$17.2M

Two-Asset Package

Building PPSF

$2,630/SF

6,548 SF Total

Land PPSF

$1,492/SF

11,542 SF Total

In-Place NOI

~$557K

Combined Annual

Cap Rate

6.0%

On In-Place Income

Lot Coverage

28%

1041 AK Dev Upside

Two complementary commercial assets on premier Abbot Kinney Blvd. 1043 AK is a stabilized, 100% leased retail/café property producing steady income through June 2028 (extension exercised). 1041 AK presents a significant value-add/development opportunity on a 7,796 SF double lot with only 28% lot coverage, 80 ft of frontage, gated parking for 10 cars, and a change-of-use to retail in final approval stages.

Asset Breakdown

1041 Abbot Kinney — Value-Add

TypeCommercial · Value-Add

Building SF2,148 SF

Lot SF7,796 SF

Lot Coverage28%

Frontage80 ft

Parking10 cars (gated)

Asking Price$8,575,600

Price / Land SF$1,100/SF

Current Rent$15,000/mo MG

Lease StatusThru Jul 2026

1043 Abbot Kinney — Stabilized

TypeRetail/Café · Stabilized

Building SF~4,400 SF (re-measured)

Lot SF3,746 SF

Frontage40 ft

TenantAlbion Garden

Asking Price$8,643,039

Cap Rate6.0%

Current Rent$43,215/mo

Lease ExpiryJun 30, 2028 (extended)

Occupancy100%

Property Overview

Premier dual-asset opportunity. Located on one of LA's most iconic retail corridors, these two properties offer a rare combination of stable current income and significant redevelopment potential. 1043 AK provides steady cash flow from Albion Garden, a Japanese cosmetics and café concept, while 1041 AK — a largely vacant double lot — represents substantial upside in one of the highest-rent retail corridors on the Westside. Combined, the properties offer 120 ft of prime Abbot Kinney frontage.

Site Information

1041 Abbot Kinney

APN4239-021-031

Address1041 Abbot Kinney Blvd

Building SF2,148 SF

Lot SF7,796 SF

Lot Coverage28%

ZoningC2-1-CA

Frontage80 ft

Parking10 cars, gated

StatusValue-Add / Development

1043 Abbot Kinney

APN4239-021-019

Address1043 Abbot Kinney Blvd

Building SF~4,400 SF (re-measured)

Lot SF3,746 SF

Lot Coverage~118%

ZoningC2-1-CA

Frontage40 ft

Occupancy100%

TenantAlbion Cosmetics (America) Inc.

Pricing Summary

Asset	Asking Price	Bldg SF	Lot SF	$/Bldg SF	$/Land SF	Cap Rate
1041 AK	$8,575,600	2,148	7,796	$3,992	$1,100	—
1043 AK	$8,643,039	~4,400	3,746	$1,965	$2,308	6.0%
Portfolio	$17,218,639	6,548	11,542	$2,630	$1,492	3.24%†

†Blended portfolio cap rate based on combined NOI of ~$557K ($471K from 1043 AK + $86K net from 1041 AK) on $17.2M portfolio price. 1043 AK standalone cap rate is 6.0% on stabilized income. 1041 AK is priced primarily as a land/development play at $1,100/land SF — the low net income reflects a below-market lease expiring July 2026, not stabilized value.

Zoning & Development Notes

Both parcels are zoned C2-1-CA (Commercial Zone, Height District 1, Coastal Appendage). 1041 AK has a change-of-use application to retail in final approval stages. The 7,796 SF double lot with only 28% coverage and 80 ft of frontage presents significant development potential, subject to City of LA and California Coastal Commission approvals.

Abbot Kinney Blvd Overview

One of LA's most iconic retail corridors. Abbot Kinney Blvd has evolved from an eclectic local strip into a nationally recognized luxury and lifestyle retail destination, drawing high-net-worth consumers from Venice, Santa Monica, Brentwood, and the broader Westside. The corridor's unique mix of independent boutiques and premium national brands creates a distinctive retail environment with extremely high foot traffic. Abbot Kinney commands some of the highest retail rents on the Westside, benefiting from strong tourism, affluent local demographics, and extremely limited new supply.

Notable Nearby Retailers

Retailer	Category
Erewhon	Premium Grocery
Gjelina	Restaurant
Lululemon	Athletic Apparel
Vuori	Athletic Apparel
Blue Bottle Coffee	Coffee
Vince	Fashion
Alo Yoga	Athletic / Lifestyle
Salt & Straw	F&B
The Butcher's Daughter	Restaurant
Intelligentsia Coffee	Coffee

Market Context

Both properties sit in the heart of the retail corridor, providing maximum visibility and foot traffic. The combination of 120 ft of combined frontage on Abbot Kinney represents a rare assemblage opportunity on one of LA's most coveted retail streets, with extremely limited comparable inventory available.

1043 AK — Albion Cosmetics Lease

Lease Overview

TenantAlbion Cosmetics (America) Inc.

LessorAbbot Kinney Investment Property LLC

Premises1043 Abbot Kinney Blvd

Original LeaseDecember 28, 2017

Lease TypeStd Industrial/Commercial — Net

Amendments3 (Mar 2020, Mar 2021, Jun 2024)

Current Terms

Current TermJul 1, 2024 – Jun 30, 2028

Extension OptionExercised thru Jun 2028

Extension StatusExercised (Dec 2025)

Lease StatusActive — Extended Term

Insurance$833/mo ($10K/yr)

Property Tax$3,125/mo ($37.5K/yr)

1043 AK Rent Schedule

Period	Annual Rent	Monthly Rent	Source
Jul 2024 – Dec 2024	$243,448	$40,575	3rd Amendment
Jan 2025 – Dec 2025	$503,478	$41,957	3rd Amendment
Jan 2026 – Dec 2026	$518,582	$43,215	3rd Amendment (extended)
Jan 2027 – Dec 2027	$534,140	$44,512	3rd Amendment
Jan 2028 – Jun 2028	$275,082	$45,847	3rd Amendment

Extension Exercised. Lessee exercised the 2-year extension option (notice deadline was Dec 1, 2025). The lease now runs through June 30, 2028 with scheduled rent escalations per the Third Amendment.

1041 AK — Current Tenant

⚠ Lease Expiration Notice: Current lease expires July 2026 (~4 months). Tenant has expressed intent to stay and holds extension options (see below), but no renewal has been executed. Investors should underwrite for the possibility of vacancy or rent adjustment at this property upon acquisition.

Lease Terms

Rent$15,000/mo Modified Gross

TermThrough July 2026

1st Extension6 mo option; Landlord has termination right in 2nd half

2nd Option2 yrs @ $20K/mo MG (Yr 1) → $25K/mo MG (Yr 2)

Tenant IntentTenant would like to stay

Landlord Expenses (1041)

Property Tax$89,000/yr ($7,417/mo)

Insurance$5,000/yr ($417/mo)

ResponsibilityLandlord pays both currently

Total LL Expense$94,000/yr

Net to LL (approx)$86,000/yr

Renewal Scenario: If tenant exercises the 2nd option at $20K–$25K/mo MG, net income improves to ~$146K–$206K/yr (before expense escalation). This would shift the 1041 AK cap rate from effectively zero to a more meaningful yield on the $8.6M basis — but this outcome is not guaranteed and should not be underwritten as the base case.

Lease History (1043)

Document	Date	Key Terms
Original Lease	Dec 28, 2017	Single-Tenant Net Lease
1st Amendment	Mar 23, 2020	Modified terms
2nd Amendment	Mar 2, 2021	Extended to Jun 30, 2024; added 2-yr option
3rd Amendment	Jun 17, 2024	Option Term Jul 2024 – Jun 2026; new extension to Jun 2028

1043 AK — Stabilized Income Analysis

Net lease asset with contractual rent through June 2028. Adjust assumptions to model returns.

Acquisition

Purchase Price ($M)

$8.64M

LTV

60%

Interest Rate

6.50%

Closing Costs (%)

1.50%

Loan Origination (pts)

1.00 pts

Exit / Growth

Exit Cap Rate

5.50%

Market Rent Growth

3.0%

Hold Period

5 yrs

Disposition Costs (%)

3.0%

Going-In Cap

—

In-place NOI / Price

Unlevered Yield

—

NOI / Price (unlevered)

Equity Multiple

—

Levered total return

Exit Value

—

At exit cap rate

Profit

—

Net gain over basis

Cash-on-Cash (Yr 1)

—

Levered annual yield

Cash Flow Summary

	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5
Gross Rent	—	—	—	—	—
NOI	—	—	—	—	—
After Debt	—	—	—	—	—

1041 AK — Value-Add / Development Analysis

Hybrid land + income play. Select a strategy and adjust assumptions.

Acquisition & Financing

Purchase Price ($M)

$8.58M

LTV

50%

Interest Rate

7.00%

Closing Costs (%)

1.50%

Loan Origination (pts)

1.00 pts

Disposition Costs (%)

3.0%

Strategy Inputs

Market Rent ($/SF/yr)

$60

TI / Rehab ($/SF)

$75

Downtime (months)

6 mo

Exit Cap / Land Apprec.

5.50%

Rent / Land Growth

3.0%

Strategy

Re-Lease

Reposition existing bldg

Total Cost Basis

—

All-in basis

Stabilized Yield

—

Stab. NOI / total cost

Equity Multiple

—

5-year levered

Exit Value

—

At exit cap / apprec.

Price / Land SF

—

7,796 SF lot

Cash Flow Summary

	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5
Gross Income	—	—	—	—	—
NOI	—	—	—	—	—
After Debt	—	—	—	—	—

Astro Intelligence

Pricing Recommendation

Astro Assessment: Based on in-place income, lease structure, land basis, and Abbot Kinney corridor comps, our recommended pricing for each parcel is outlined below. The listing prices reflect premium asking positions — we see room for negotiation, particularly on 1041 AK where the income doesn't justify the ask.

1043 AK Target

$7.85M

6.0% cap · −9.2% to ask

1041 AK Target

$7.00M

$898/land SF · −18.4% to ask

Portfolio Target

$14.85M

13.8% below combined ask

1043 AK — Stabilized Asset

Asking Price$8,643,039

In-Place NOI$471,082

Asking Cap Rate5.45%

GWC Target Cap6.0%

1041 AK — Value-Add / Land

Asking Price$8,575,600

Asking $/Land SF$1,100/SF

Net Income to LL$86,000/yr

GWC Target $/Land SF$898/SF

Rationale: At a 6.0% cap, 1043 AK is priced in line with comparable stabilized Westside retail net lease assets, reflecting a ~2.3-year WALT. The blended portfolio cap of 3.24% reflects the value-add component: 1041 AK generates only $86K/yr net on a below-market lease expiring July 2026, and is priced primarily as a land/development play at $1,100/land SF. The 80 ft Abbot Kinney frontage and development upside justify a premium over raw land comps, but investors should underwrite to the blended return profile, not the stabilized cap on 1043 alone.

Confidential Memorandum — Disclaimer

This document has been prepared by Galaxy Wayco (“GWC”) for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, investment, or real property. This is not intended to be, and should not be construed as, investment, legal, tax, or accounting advice.

All information contained herein has been obtained from sources believed to be reliable, but GWC makes no representation or warranty, express or implied, as to the accuracy, completeness, or timeliness of such information. All financial projections, estimates, and forward-looking statements are based on assumptions that may not be realized and are subject to significant uncertainty and market risk. Actual results may differ materially from those projected.

Prospective investors and buyers should conduct their own independent due diligence and consult with their own legal, tax, financial, and other advisors before making any investment decision. Past performance is not indicative of future results.

This document is confidential and proprietary. It is intended solely for the use of the authorized recipient and may not be reproduced, distributed, or disclosed to any third party without the prior written consent of GWC. By accepting this document, the recipient agrees to maintain its confidentiality and to return or destroy all copies upon request.

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★ Galaxy Wayco · Confidential Deal Intelligence · March 2026 ★
This document is proprietary and intended solely for authorized recipients.