Investment Overview

Marcus & Millichap is proud to present 2727 3rd Street, a rare 22-unit multifamily offering situated in the heart of Santa Monica's sought-after Ocean Park neighborhood, just blocks from the celebrated dining and boutique retail of Main Street and less than half a mile from the sand and surf of Santa Monica State Beach. This is the property's ?rst appearance on the open market since it was constructed by its original owner in 1969, representing a singular opportunity to acquire a generational coastal asset that has never changed hands. The two-story, courtyard-style building encompasses approximately 17,020 square feet of rentable space across 20 spacious one-bedroom/one-bathroom units and two generously sized two-bedroom/one-and-a-half-bathroom residences. Unit sizes are notably large for the submarket, with one-bedroom ?oorplans at 750 square feet and two-bedroom homes reaching 1,010 square feet — offering tenants meaningful living space at a time when newer coastal product skews smaller. Select upper-?oor units feature private balconies with ocean and neighborhood views, while ground-?oor residences enjoy enclosed patios — premium amenities that continue to command leasing velocity and resident loyalty in this supply-constrained corridor. The property is completed by 22 covered, gated parking spaces, where dedicated parking is highly valued. Organic income growth without the need for capital displacement or tenant buyouts. This embedded rent upside represents one of the most attractive features of the offering, with the potential to dramatically accelerate net operating income over a typical hold period. Equally compelling from a long-term ownership perspective: the property's 22 units substantially exceed the approximately 12 units permitted under current SMOP2 zoning. This legal non-conforming density is grandfathered from the original 1969 construction and cannot be replicated under any current entitlement pathway — making the existing improvements structurally more valuable than the land alone and creating a permanent competitive moat for the asset.