Arroyo Gateway Business Park
Arroyo Gateway Business Park 143-161 Pasadena Avenue, South Pasadena, CA 91030
FOR SALE
Offering Memorandum
Multi-Tenant Office Investment Opportunity Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
Disclaimer
Disclaimer: Information included or referred to herein is furnished by third parties and is not guaranteed as to its accuracy or completeness. You understand that all information included or referred to herein is confidential and furnished solely for the purpose of your review in connection with a potential purchase of the subject property. Independent estimates of pro-forma income and expenses should be developed by you before any decision is made on whether to make any purchase. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual documents to which they relate. NAI Capital, the asset owner(s), and their representatives (i) make no representations or warranties of any kind, express or implied, as to any information or projections relating to the subject property, and hereby disclaim any and all such warranties or representations, and (ii) shall have no liability whatsoever arising from any errors, omissions or discrepancies in the information. Any solicitation for offers to purchase the subject asset(s) is subject to prior placement and withdrawal, cancellation or modification without notice.
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
Table of Contents
Carl E. Anderson
Executive Vice President 626 204 1510
01
Executive Summary
02
Property Overview
03
Market Overview
04
Financial Analysis
05
Tenant Information
[email protected] CA BRE Lic. # 00785702
Jodi Shoemake Vice President 626 204 1524
[email protected]
CA BRE Lic. # 01833063
Sheri McCanless
Senior Vice President 626 204 1508
[email protected]
CA BRE Lic. # 01306519
NAI Capital 225 South Lake Avenue Suite 1170 Pasadena, California 91101 626 564 4800 office naicapital.com
1
Section 01
Executive Summary
Executive Summary
MULTI-TENANT OFFICE OWNER USER / INVESTMENT OPPORTUNITY NAI Capital, Inc. is pleased to present the Arroyo Gateway Business Park (the “Property"), an exceptional opportunity to purchase an approximately 43,317 SF multi-tenant office campus, consisting of 3 buildings on 2.2 acres of land. The property offers the new owner a unique opportunity to acquire a newly renovated, creatively designed, multi-tenant investment or owner/user asset with stable cash flow. The Property is 93.7% occupied with a diverse tenant mix and variable term leases in place. The Property was completely renovated in 2014, restoring the original bow truss ceilings and converting the office buildings to a modern, creative design. Located on Pasadena Avenue, a highly accessible north/south thoroughfare adjacent to the historic I-110 Freeway, the Arroyo Gateway Business Park connects South Pasadena to the city of Pasadena to the north and Downtown Los Angeles to the south.
Investment Summary: • ASKING PRICE:
$12,500,000
• PRICE PER SF:
$289.00
• CURRENT OCCUPANCY:
93.7%
• Proforma NOI:
$677,720
• Staggered Lease Expiration through 2025
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Executive Summary Investment Highlights: • • • • • • •
Beautifully renovated, creative office conversion designed with modern interior finishes while restoring the property’s original architecture Rare Owner-User or Investment Opportunity Stable initial cash flow with high quality tenants and long-term leases in place South Pasadena’s newest business park development Professionally landscaped campus environment Excellent access to the 110-Pasadena Freeway, only 7.8 miles from Downtown Los Angeles South Pasadena, named as one of the 24 best places to live and work in 2014 by Sunset Magazine
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
2
Section 02
Property Overview
Property Overview Property Features: •
Multi-tenant One and Two Story Office Building Complex
•
Two buildings are creative, open floor plans with high bow truss ceilings, floor to ceiling glass windows and skylights providing plenty of natural light
•
Free parking (3:1,000 SF) and professionally designed landscape
•
Excellent location and access, minutes from the 110 Freeway to all major freeways in Southern California
Property Description: ADDRESS:
143-161 Pasadena Ave., South Pasadena, CA 91301
PARCEL NUMBER:
5311-004-010
TOTAL BUILDING AREA:
43,317 SF
LAND AREA:
2.2 Acres
PARKING RATIO:
3 per 1,000 SF
YEAR BUILT:
1950 (Renovated 2014)
ZONING:
SPBP
CONSTRUCTION TYPE:
Wood frame and stucco, brick block and masonry
HVAC:
Independently controlled package units
UTILITIES:
Electric - Southern California Edison Water/Sewer - City of South Pasadena
ROOF:
Built-up composition
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Property Overview Building A - Site Plan 143 Pasadena Avenue
±5,415 SF
±6,908 SF
PASADENA AVENUE
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Property Overview Building B - Site Plan 149 Pasadena Avenue 1 st Floor
2 nd Floor
Vacant ±2,720 SF
±8,570 SF
±3,254 SF
PASADENA AVENUE
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Property Overview Building C - Site Plan 161 Pasadena Avenue
Carol Walker, M.D.
±2,500 SF
±3,200 SF
±4,800 SF
±5,950 SF
PASADENA AVENUE
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Property Overview
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
3
Section 03
Market Overview
Market Overview Los Angeles County Office Market The Arroyo Gateway Business Park is situated approximately 8 miles from the central business district of Downtown Los Angeles, a city that has experienced a major transformation and revitalization over the past several years. LA County’s man-made harbor, The Port of Los Angeles is one of the most important and busiest ports in the world, with approximately $1.2 billion worth of cargo coming in each day. Los Angeles is known as the entertainment capital of the world, with other industries such as tourism, manufacturing, finance, and commercial playing an important role in the development of the county and region. The Los Angeles office market ended the fourth quarter 2015 with a vacancy rate of 11%, down from 11.5% at the end of the first quarter. Net absorption totaled a positive 1,671,978 square feet and overall rental rates continued to increase among Class A, B and C buildings ending the year at $2.63. A total of 3,818,925 square feet of office space are currently under construction.
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Market Overview Tri-Cities Office Market Tri-Cities Sales $550.00
1,500,000
$440.00
1,200,000
$330.00
900,000
$220.00
600,000
$110.00
300,000
$0.00
0 2006 Q1 2006 Q3 2007 Q1 2007 Q3 2008 Q1 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3
The Tri-Cities area is commonly known as the Burbank/ Glendale/Pasadena sub-market and is a good indication of the larger office market adjacent to South Pasadena. The Tri-Cities ended 2015 with improved leasing fundamentals in the Class B office market. Overall, vacancy dropped 100 basis points from the previous quarter to end the year at 8.7% and 200 basis points lower from the vacancy rate of 10.7% registered in the fourth quarter of 2014. The Class B average asking rate in the Tri-Cities ended at $2.33, up $ 0.14 from the previous year. The San Gabriel Valley submarket is also relevant as it includes the cities of Pasadena, Monrovia and Arcadia, more comparable in size to South Pasadena with similar overall demographics.
Sales Volume (SF)
Price PSF ($)
Tri-Cities Leases
Leasing Volume (SF)
2015 Q3
2015 Q1
2014 Q3
2014 Q1
2013 Q3
2013 Q1
2012 Q3
2012 Q1
2011 Q3
0 2011 Q1
$0.00 2010 Q3
300,000
2010 Q1
$0.70
2009 Q3
600,000
2009 Q1
$1.40
2008 Q3
900,000
2008 Q1
$2.10
2007 Q3
1,200,000
2007 Q1
$2.80
2006 Q3
1,500,000
2006 Q1
$3.50
Rent (Price/SF)
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Market Overview San Gabriel Valley Office Market The San Gabriel Valley ended the year with improved leasing fundamentals in the office market. Overall, vacancy dropped 20 basis points from the previous quarter and remained steady year over year. The Western San Gabriel Valley submarket had lower overall vacancy at 9.4% while the Eastern submarket was slightly higher at 11.3%. Class C buildings showed the lowest overall vacancy rate while Class A buildings in the Western submarket registered a low vacancy of 4.1% at the end of the year. In the fourth quarter, San Gabriel Valley totaled more than 40,000 square feet of positive net absorption. In terms of rental rates, the average gross asking rate per square foot was $2.09, up 4.5% from the prior year. Class A rates averaged $2.30/SF, Class B was $2.11/SF and Class C was $1.77/SF. Leasing activity totaled 443,140 square feet for the quarter and more than 1.5 million square feet for the year. A modest 98,183 square feet of construction is currently underway in the market.
San Gabriel Valley Leases
San Gabriel Valley Sales
$2.50
1,500,000
$2.00
1,200,000
$1.50 $1.00
$350.00
700,000
$300.00
600,000
$250.00
500,000
900,000
$200.00
400,000
600,000
$150.00
300,000
$100.00
200,000
$50.00
100,000
0
Leasing Activity (SF)
0
$0.00
Rent ($/SF)
Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
$0.00
2000 2000 2001 2002 2003 2003 2004 2005 2006 2006 2007 2008 2009 2009 2010 2011 2012 2012 2013 2014 2015 2015
300,000
2000 Q1 2000 Q4 2001 Q3 2002 Q2 2003 Q1 2003 Q4 2004 Q3 2005 Q2 2006 Q1 2006 Q4 2007 Q3 2008 Q2 2009 Q1 2009 Q4 2010 Q3 2011 Q2 2012 Q1 2012 Q4 2013 Q3 2014 Q2 2015 Q1 2015 Q4
$0.50
Sale Volume (SF)
Sale Price ($/SF)
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Market Overview South Pasadena
The Arroyo Gateway Business Park is an exciting new redevelopment property for the City of South Pasadena, a community that has seen little to no development over the past 10 years. South Pasadena is a charming community, situated only eight miles from downtown Los Angeles. Called the City of Trees, the area is known for its stunning homes, unique small businesses, and top quality schools. South Pasadena’s diverse population of about 25,000 occupies a mere 3.44 square miles of flatlands and hillsides on the west side of the San Gabriel Valley. This small town atmosphere makes South Pasadena one of California's most desirable locations to both live and work. South Pasadena was named as one of the 24 best places to live and work in 2014 by Sunset Magazine, boasting a walk score of 95 and served by the desirable South Pasadena Unified School District, the project offers residents a range of desirable amenities in a uniquely community-focused setting. The median household income was $85,058, above the estimate for Los Angeles County. The quiet, historic character of its attractive neighborhoods is a testament to the preservationist efforts of residents in protecting both its architectural and natural beauty. The Arroyo Seco Golf Course, steps from the Arroyo Gateway Business Park is a treasure of South Pasadena, offering a course consisting of 18 holes of par 3 golf, a lighted driving range, putting green, miniature golf, restaurant and pro shop facilities.
Photo: ©2015 Ken Lund. Licensed Under Creative Commons
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
4
Section 04
Financial Analysis
Financial Analysis Rent Roll SUITE
SF
% OF GLA
TERM
COMMENCE
TERMINATE
MG* BASE RENT
Carol Walker, MD
161 D
2,500
5.77%
60 mos.
3/1/2012
2/28/2017
$1.64
Razor
161 C
3,200
7.39%
37 mos.
2/1/2015
3/30/2018
$2.06
Bert - Co
161 B
4,800
11.08%
60 mos.
6/24/2015
6/30/2020
$1.90
M-3
161 A
5,950
13.74%
120 mos.
11/1/2015
10/31/2025
$1.90
Hillsides
149 A
8,570
19.78%
63 mos.
11/1/2014
1/31/2020
$1.80
Judson
143 A
6,908
15.95%
89 mos.
4/1/2016
8/31/2023
$1.90
Bullseye
143 B
5,415
12.50%
76 mos.
4/1/2016
7/30/2022
$1.90
JLA
149B
3,254
7.51%
62 mos.
3/1/2016
4/30/2021
$1.90
**Vacant
149 C
2,720
6.28%
TENANT
Gross Rentable SF
43,317
Vacant
2,720
Occupied
40,584
**$1.90
* Net of utilities and janitorial ** Proforma rent @ $1.90
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Financial Analysis
RECURRING EXPENSE CATEGORIES Annual Expense
Expense per SF
Property Insurance Woodruff Sawyer & Co.
$70,043
$1.61
$29,040
$0.57
$7,030
$0.16
$2,215
$0.05
$17,383
$0.40
S & A Janitor Services
$5,760
$0.13
Western States Landscape
$5,950
$0.14
Glendale Fire Systems
$2,297
$0.05
AirTro
$2,000
$0.05
$156,250
$3.60
$297,968
$6.88
Property Management NAI Capital Management Services Water City of South Pasadena Trash Removal Athens Services Common Area Lighting Southern California Edison General Maintenance
Real Estate Taxes Based on asking price @1.25% $12,500,000
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Financial Analysis Sale Comps
Address
929 E 2nd St. Los Angeles
710 S Central Ave Glendale
3200 N San Fernando Rd. Los Angeles
4515-4513 Eagle Rock Bl. Eagle Rock, Los Angeles
111 W Lemon Ave Monrovia
$21,600,000
$10,000,000
$22,000,000
$9,000,000
$9,600,000
10/28/2015
10/15/2015
10/15/2015
08/18/2015
06/26/2015
Redevelopment
Owner User
Investment
Investment
Investment
Flex
Class B Office
Class B Office
Class C Medical / Office
Class B Office
Building Size
44,457 SF
40,461 SF
77,480 SF
31,700 SF
47,976 SF
Lot Size
29,743 SF
22,616 SF
255,697 SF
58,157 SF
24,002 SF
Year Built
1926
1991
1972
1968
1989
Price per SF
$485
$247
$284
$284
$200
Parking
8 Surface parking spaces + additional spaces in the basement
30 Covered Parking
140 Parking Spaces
76 Parking Spaces
90 Parking Spaces
Notes
Property included a basement and new owner to add three additional floors
Buyer was a local doctor and plans on expanding practice into this building.
7.36% CAP rate. Two buildings both occupied by Shepherd University. Lease shows 83,600 SF
Seller carried $3million. Tenants include Chiropractor, Dentist, Church, Electrical Services
Buyer had to assume a loan with an unfavorable interest rate.
Sales Price Sale Date Type of Sale Building Type
Photos Supplied by CoStar
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Financial Analysis Sale Comps
Address
5015 Eagle Rock Blvd Eagle Rock, Los Angeles
2481-2485 Lillyvale Ave. Los Angeles
820 Mission St. South Pasadena
625 Fair Oaks Ave. South Pasadena
87 E Green St. Pasadena
Sales Price
$8,100,000
$12,500,000
$11,000,000
$20,000,000
$13,700,000
Sale Date
03/13/2015
03/13/2015
11/04/2014
08/28/2014
07/31/2014
Type of Sale
Investment
Owner User
Redevelopment
Investment
Investment
Class B Office
Flex
Flex
Class B Office
Class B Office
Building Size
30,000 SF
50,000 SF
41,000 SF
80,056 SF
43,856 SF
Lot Size
27,966 SF
109,283 SF
82,764 SF
111,431 SF
15,011 SF
Year Built
1963
1981
1943
1987
1908
Price per SF
$270
$250
$268
$250
$312
72 Parking Spaces
4/1000 Surface Parking
102 Parking Spaces
120 Parking Spaces
None
Buyer plans to vacate month to month tenants and remodel the building.
Buyer was looking to expand and owned the property next door.
Property purchased for Land Value
New owner to convert property into creative office space. Not purchased on a CAP rate.
Mixed use building in Old Pasadena. Office over retail. Cap rate 7.07%
Building Type
Parking Notes
Photos Supplied by CoStar
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
5
Section 05
Tenant Profiles
Tenant Profiles M3 is an office design dealership dedicated to creating sophisticated, efficient and inspirational office spaces since 1997. M3 brings 19 years of experience designing office space for corporate, government and education clients. Teams of experienced designers collaborate to simplify and execute projects of any scale. In addition to personalized design services, M3 provides project management, budget development and installation services. Razor, founded in Cerritos, CA in 2000, is an American designer and manufacturer of human and battery powered vehicles. Razor is well known for its Razor-branded scooter, which sold five million within six months after launching and was named Toy of the Year in 2001. Razor is also the company behind several other successful products including the electric scooter, Ripstik and Hovertrax.
Bert-Co is a leading creator of folding cartons and innovative specialty packaging for luxury markets including beauty, fancy food, distilled beverages, entertainment, home fragrance and iconic brands. Since 1930, Bert-Co has created and manufactured cartons and packaging for notable clients including Philips, Jack Daniels, Atari, Glam Glow Skincare and many more. Bert-Co also holds the distinction of printing the first record jacket printed in the United States for The Beatles. In 2015, BertCo was awarded Folding Carton of the Year in the folding carton category by Paperboard Packaging Council and the Benny Award for best printed card from Printing Industries of America. Bert-Co utilizes two domestic manufacturing facilities located in Ontario, California and Pulaski, Tennessee that are equipped to deliver brilliant results quickly and efficiently. Together with Bert-Co international in China and manufacturing partners in Mexico, Bert-Co is suited for all varieties of paper packaging needs.
The Judson Studios are a fine arts studio that specialize in creating handmade, artistic and decorative stained and architectural glass product located in Highland Park, California. Judson Studios are a family-run operation going back five generations to 1876 and are the oldest family run fine art glass company in the world. The artists and craftsmen at Judson Studios regularly design glass creations for churches, homes, and commercial buildings. They combine the tradition of architectural glass making with 21st century technology. Judson Studios has created architectural glass pieces for Walt Disney World, the University of Southern California, and several original and restored projects for Frank Lloyd Wright’s Hollyhock House and Unity Temple. Bullseye Glass Co. is a manufacturer of colored glass for art and architecture with worldwide distribution and a strong commitment to research, education, and promoting glass art. It is based in Portland, Oregon. Bullseye Glass is
widely known as the first company in the world to formulate and manufacture glasses that are factory-tested for compatibility. Bullseye provides more than 1,000 different glass products in a complex color palette to artists worldwide. Artists collaborating with Bullseye include Rafael Cauduro, Jessica Loughlin, Clifford Rainey and several others. Hillsides is a premier provider dedicated to improving the overall well-being and functioning of vulnerable children, youth, and their families for more than 100 years. By providing high quality care, advocacy and services, Hillsides executes its vision to create lasting change in the lives of at-risk children and youth. Hillsides offers numerous community-based programs and services through several Hillsides Family Resource Centers in Los Angeles County, including the San Gabriel Valley and Pasadena. These centers provide parenting classes, mental health support, and additional crucial resources for vulnerable children and families.
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
FOR SALE
Offering Memorandum
Multi-Tenant Office Investment Opportunity Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
Disclaimer
Disclaimer: Information included or referred to herein is furnished by third parties and is not guaranteed as to its accuracy or completeness. You understand that all information included or referred to herein is confidential and furnished solely for the purpose of your review in connection with a potential purchase of the subject property. Independent estimates of pro-forma income and expenses should be developed by you before any decision is made on whether to make any purchase. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual documents to which they relate. NAI Capital, the asset owner(s), and their representatives (i) make no representations or warranties of any kind, express or implied, as to any information or projections relating to the subject property, and hereby disclaim any and all such warranties or representations, and (ii) shall have no liability whatsoever arising from any errors, omissions or discrepancies in the information. Any solicitation for offers to purchase the subject asset(s) is subject to prior placement and withdrawal, cancellation or modification without notice.
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
Table of Contents
Carl E. Anderson
Executive Vice President 626 204 1510
01
Executive Summary
02
Property Overview
03
Market Overview
04
Financial Analysis
05
Tenant Information
[email protected] CA BRE Lic. # 00785702
Jodi Shoemake Vice President 626 204 1524
[email protected]
CA BRE Lic. # 01833063
Sheri McCanless
Senior Vice President 626 204 1508
[email protected]
CA BRE Lic. # 01306519
NAI Capital 225 South Lake Avenue Suite 1170 Pasadena, California 91101 626 564 4800 office naicapital.com
1
Section 01
Executive Summary
Executive Summary
MULTI-TENANT OFFICE OWNER USER / INVESTMENT OPPORTUNITY NAI Capital, Inc. is pleased to present the Arroyo Gateway Business Park (the “Property"), an exceptional opportunity to purchase an approximately 43,317 SF multi-tenant office campus, consisting of 3 buildings on 2.2 acres of land. The property offers the new owner a unique opportunity to acquire a newly renovated, creatively designed, multi-tenant investment or owner/user asset with stable cash flow. The Property is 93.7% occupied with a diverse tenant mix and variable term leases in place. The Property was completely renovated in 2014, restoring the original bow truss ceilings and converting the office buildings to a modern, creative design. Located on Pasadena Avenue, a highly accessible north/south thoroughfare adjacent to the historic I-110 Freeway, the Arroyo Gateway Business Park connects South Pasadena to the city of Pasadena to the north and Downtown Los Angeles to the south.
Investment Summary: • ASKING PRICE:
$12,500,000
• PRICE PER SF:
$289.00
• CURRENT OCCUPANCY:
93.7%
• Proforma NOI:
$677,720
• Staggered Lease Expiration through 2025
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Executive Summary Investment Highlights: • • • • • • •
Beautifully renovated, creative office conversion designed with modern interior finishes while restoring the property’s original architecture Rare Owner-User or Investment Opportunity Stable initial cash flow with high quality tenants and long-term leases in place South Pasadena’s newest business park development Professionally landscaped campus environment Excellent access to the 110-Pasadena Freeway, only 7.8 miles from Downtown Los Angeles South Pasadena, named as one of the 24 best places to live and work in 2014 by Sunset Magazine
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
2
Section 02
Property Overview
Property Overview Property Features: •
Multi-tenant One and Two Story Office Building Complex
•
Two buildings are creative, open floor plans with high bow truss ceilings, floor to ceiling glass windows and skylights providing plenty of natural light
•
Free parking (3:1,000 SF) and professionally designed landscape
•
Excellent location and access, minutes from the 110 Freeway to all major freeways in Southern California
Property Description: ADDRESS:
143-161 Pasadena Ave., South Pasadena, CA 91301
PARCEL NUMBER:
5311-004-010
TOTAL BUILDING AREA:
43,317 SF
LAND AREA:
2.2 Acres
PARKING RATIO:
3 per 1,000 SF
YEAR BUILT:
1950 (Renovated 2014)
ZONING:
SPBP
CONSTRUCTION TYPE:
Wood frame and stucco, brick block and masonry
HVAC:
Independently controlled package units
UTILITIES:
Electric - Southern California Edison Water/Sewer - City of South Pasadena
ROOF:
Built-up composition
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Property Overview Building A - Site Plan 143 Pasadena Avenue
±5,415 SF
±6,908 SF
PASADENA AVENUE
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Property Overview Building B - Site Plan 149 Pasadena Avenue 1 st Floor
2 nd Floor
Vacant ±2,720 SF
±8,570 SF
±3,254 SF
PASADENA AVENUE
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Property Overview Building C - Site Plan 161 Pasadena Avenue
Carol Walker, M.D.
±2,500 SF
±3,200 SF
±4,800 SF
±5,950 SF
PASADENA AVENUE
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Property Overview
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
3
Section 03
Market Overview
Market Overview Los Angeles County Office Market The Arroyo Gateway Business Park is situated approximately 8 miles from the central business district of Downtown Los Angeles, a city that has experienced a major transformation and revitalization over the past several years. LA County’s man-made harbor, The Port of Los Angeles is one of the most important and busiest ports in the world, with approximately $1.2 billion worth of cargo coming in each day. Los Angeles is known as the entertainment capital of the world, with other industries such as tourism, manufacturing, finance, and commercial playing an important role in the development of the county and region. The Los Angeles office market ended the fourth quarter 2015 with a vacancy rate of 11%, down from 11.5% at the end of the first quarter. Net absorption totaled a positive 1,671,978 square feet and overall rental rates continued to increase among Class A, B and C buildings ending the year at $2.63. A total of 3,818,925 square feet of office space are currently under construction.
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Market Overview Tri-Cities Office Market Tri-Cities Sales $550.00
1,500,000
$440.00
1,200,000
$330.00
900,000
$220.00
600,000
$110.00
300,000
$0.00
0 2006 Q1 2006 Q3 2007 Q1 2007 Q3 2008 Q1 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3
The Tri-Cities area is commonly known as the Burbank/ Glendale/Pasadena sub-market and is a good indication of the larger office market adjacent to South Pasadena. The Tri-Cities ended 2015 with improved leasing fundamentals in the Class B office market. Overall, vacancy dropped 100 basis points from the previous quarter to end the year at 8.7% and 200 basis points lower from the vacancy rate of 10.7% registered in the fourth quarter of 2014. The Class B average asking rate in the Tri-Cities ended at $2.33, up $ 0.14 from the previous year. The San Gabriel Valley submarket is also relevant as it includes the cities of Pasadena, Monrovia and Arcadia, more comparable in size to South Pasadena with similar overall demographics.
Sales Volume (SF)
Price PSF ($)
Tri-Cities Leases
Leasing Volume (SF)
2015 Q3
2015 Q1
2014 Q3
2014 Q1
2013 Q3
2013 Q1
2012 Q3
2012 Q1
2011 Q3
0 2011 Q1
$0.00 2010 Q3
300,000
2010 Q1
$0.70
2009 Q3
600,000
2009 Q1
$1.40
2008 Q3
900,000
2008 Q1
$2.10
2007 Q3
1,200,000
2007 Q1
$2.80
2006 Q3
1,500,000
2006 Q1
$3.50
Rent (Price/SF)
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Market Overview San Gabriel Valley Office Market The San Gabriel Valley ended the year with improved leasing fundamentals in the office market. Overall, vacancy dropped 20 basis points from the previous quarter and remained steady year over year. The Western San Gabriel Valley submarket had lower overall vacancy at 9.4% while the Eastern submarket was slightly higher at 11.3%. Class C buildings showed the lowest overall vacancy rate while Class A buildings in the Western submarket registered a low vacancy of 4.1% at the end of the year. In the fourth quarter, San Gabriel Valley totaled more than 40,000 square feet of positive net absorption. In terms of rental rates, the average gross asking rate per square foot was $2.09, up 4.5% from the prior year. Class A rates averaged $2.30/SF, Class B was $2.11/SF and Class C was $1.77/SF. Leasing activity totaled 443,140 square feet for the quarter and more than 1.5 million square feet for the year. A modest 98,183 square feet of construction is currently underway in the market.
San Gabriel Valley Leases
San Gabriel Valley Sales
$2.50
1,500,000
$2.00
1,200,000
$1.50 $1.00
$350.00
700,000
$300.00
600,000
$250.00
500,000
900,000
$200.00
400,000
600,000
$150.00
300,000
$100.00
200,000
$50.00
100,000
0
Leasing Activity (SF)
0
$0.00
Rent ($/SF)
Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
$0.00
2000 2000 2001 2002 2003 2003 2004 2005 2006 2006 2007 2008 2009 2009 2010 2011 2012 2012 2013 2014 2015 2015
300,000
2000 Q1 2000 Q4 2001 Q3 2002 Q2 2003 Q1 2003 Q4 2004 Q3 2005 Q2 2006 Q1 2006 Q4 2007 Q3 2008 Q2 2009 Q1 2009 Q4 2010 Q3 2011 Q2 2012 Q1 2012 Q4 2013 Q3 2014 Q2 2015 Q1 2015 Q4
$0.50
Sale Volume (SF)
Sale Price ($/SF)
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Market Overview South Pasadena
The Arroyo Gateway Business Park is an exciting new redevelopment property for the City of South Pasadena, a community that has seen little to no development over the past 10 years. South Pasadena is a charming community, situated only eight miles from downtown Los Angeles. Called the City of Trees, the area is known for its stunning homes, unique small businesses, and top quality schools. South Pasadena’s diverse population of about 25,000 occupies a mere 3.44 square miles of flatlands and hillsides on the west side of the San Gabriel Valley. This small town atmosphere makes South Pasadena one of California's most desirable locations to both live and work. South Pasadena was named as one of the 24 best places to live and work in 2014 by Sunset Magazine, boasting a walk score of 95 and served by the desirable South Pasadena Unified School District, the project offers residents a range of desirable amenities in a uniquely community-focused setting. The median household income was $85,058, above the estimate for Los Angeles County. The quiet, historic character of its attractive neighborhoods is a testament to the preservationist efforts of residents in protecting both its architectural and natural beauty. The Arroyo Seco Golf Course, steps from the Arroyo Gateway Business Park is a treasure of South Pasadena, offering a course consisting of 18 holes of par 3 golf, a lighted driving range, putting green, miniature golf, restaurant and pro shop facilities.
Photo: ©2015 Ken Lund. Licensed Under Creative Commons
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
4
Section 04
Financial Analysis
Financial Analysis Rent Roll SUITE
SF
% OF GLA
TERM
COMMENCE
TERMINATE
MG* BASE RENT
Carol Walker, MD
161 D
2,500
5.77%
60 mos.
3/1/2012
2/28/2017
$1.64
Razor
161 C
3,200
7.39%
37 mos.
2/1/2015
3/30/2018
$2.06
Bert - Co
161 B
4,800
11.08%
60 mos.
6/24/2015
6/30/2020
$1.90
M-3
161 A
5,950
13.74%
120 mos.
11/1/2015
10/31/2025
$1.90
Hillsides
149 A
8,570
19.78%
63 mos.
11/1/2014
1/31/2020
$1.80
Judson
143 A
6,908
15.95%
89 mos.
4/1/2016
8/31/2023
$1.90
Bullseye
143 B
5,415
12.50%
76 mos.
4/1/2016
7/30/2022
$1.90
JLA
149B
3,254
7.51%
62 mos.
3/1/2016
4/30/2021
$1.90
**Vacant
149 C
2,720
6.28%
TENANT
Gross Rentable SF
43,317
Vacant
2,720
Occupied
40,584
**$1.90
* Net of utilities and janitorial ** Proforma rent @ $1.90
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Financial Analysis
RECURRING EXPENSE CATEGORIES Annual Expense
Expense per SF
Property Insurance Woodruff Sawyer & Co.
$70,043
$1.61
$29,040
$0.57
$7,030
$0.16
$2,215
$0.05
$17,383
$0.40
S & A Janitor Services
$5,760
$0.13
Western States Landscape
$5,950
$0.14
Glendale Fire Systems
$2,297
$0.05
AirTro
$2,000
$0.05
$156,250
$3.60
$297,968
$6.88
Property Management NAI Capital Management Services Water City of South Pasadena Trash Removal Athens Services Common Area Lighting Southern California Edison General Maintenance
Real Estate Taxes Based on asking price @1.25% $12,500,000
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Financial Analysis Sale Comps
Address
929 E 2nd St. Los Angeles
710 S Central Ave Glendale
3200 N San Fernando Rd. Los Angeles
4515-4513 Eagle Rock Bl. Eagle Rock, Los Angeles
111 W Lemon Ave Monrovia
$21,600,000
$10,000,000
$22,000,000
$9,000,000
$9,600,000
10/28/2015
10/15/2015
10/15/2015
08/18/2015
06/26/2015
Redevelopment
Owner User
Investment
Investment
Investment
Flex
Class B Office
Class B Office
Class C Medical / Office
Class B Office
Building Size
44,457 SF
40,461 SF
77,480 SF
31,700 SF
47,976 SF
Lot Size
29,743 SF
22,616 SF
255,697 SF
58,157 SF
24,002 SF
Year Built
1926
1991
1972
1968
1989
Price per SF
$485
$247
$284
$284
$200
Parking
8 Surface parking spaces + additional spaces in the basement
30 Covered Parking
140 Parking Spaces
76 Parking Spaces
90 Parking Spaces
Notes
Property included a basement and new owner to add three additional floors
Buyer was a local doctor and plans on expanding practice into this building.
7.36% CAP rate. Two buildings both occupied by Shepherd University. Lease shows 83,600 SF
Seller carried $3million. Tenants include Chiropractor, Dentist, Church, Electrical Services
Buyer had to assume a loan with an unfavorable interest rate.
Sales Price Sale Date Type of Sale Building Type
Photos Supplied by CoStar
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
Financial Analysis Sale Comps
Address
5015 Eagle Rock Blvd Eagle Rock, Los Angeles
2481-2485 Lillyvale Ave. Los Angeles
820 Mission St. South Pasadena
625 Fair Oaks Ave. South Pasadena
87 E Green St. Pasadena
Sales Price
$8,100,000
$12,500,000
$11,000,000
$20,000,000
$13,700,000
Sale Date
03/13/2015
03/13/2015
11/04/2014
08/28/2014
07/31/2014
Type of Sale
Investment
Owner User
Redevelopment
Investment
Investment
Class B Office
Flex
Flex
Class B Office
Class B Office
Building Size
30,000 SF
50,000 SF
41,000 SF
80,056 SF
43,856 SF
Lot Size
27,966 SF
109,283 SF
82,764 SF
111,431 SF
15,011 SF
Year Built
1963
1981
1943
1987
1908
Price per SF
$270
$250
$268
$250
$312
72 Parking Spaces
4/1000 Surface Parking
102 Parking Spaces
120 Parking Spaces
None
Buyer plans to vacate month to month tenants and remodel the building.
Buyer was looking to expand and owned the property next door.
Property purchased for Land Value
New owner to convert property into creative office space. Not purchased on a CAP rate.
Mixed use building in Old Pasadena. Office over retail. Cap rate 7.07%
Building Type
Parking Notes
Photos Supplied by CoStar
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
5
Section 05
Tenant Profiles
Tenant Profiles M3 is an office design dealership dedicated to creating sophisticated, efficient and inspirational office spaces since 1997. M3 brings 19 years of experience designing office space for corporate, government and education clients. Teams of experienced designers collaborate to simplify and execute projects of any scale. In addition to personalized design services, M3 provides project management, budget development and installation services. Razor, founded in Cerritos, CA in 2000, is an American designer and manufacturer of human and battery powered vehicles. Razor is well known for its Razor-branded scooter, which sold five million within six months after launching and was named Toy of the Year in 2001. Razor is also the company behind several other successful products including the electric scooter, Ripstik and Hovertrax.
Bert-Co is a leading creator of folding cartons and innovative specialty packaging for luxury markets including beauty, fancy food, distilled beverages, entertainment, home fragrance and iconic brands. Since 1930, Bert-Co has created and manufactured cartons and packaging for notable clients including Philips, Jack Daniels, Atari, Glam Glow Skincare and many more. Bert-Co also holds the distinction of printing the first record jacket printed in the United States for The Beatles. In 2015, BertCo was awarded Folding Carton of the Year in the folding carton category by Paperboard Packaging Council and the Benny Award for best printed card from Printing Industries of America. Bert-Co utilizes two domestic manufacturing facilities located in Ontario, California and Pulaski, Tennessee that are equipped to deliver brilliant results quickly and efficiently. Together with Bert-Co international in China and manufacturing partners in Mexico, Bert-Co is suited for all varieties of paper packaging needs.
The Judson Studios are a fine arts studio that specialize in creating handmade, artistic and decorative stained and architectural glass product located in Highland Park, California. Judson Studios are a family-run operation going back five generations to 1876 and are the oldest family run fine art glass company in the world. The artists and craftsmen at Judson Studios regularly design glass creations for churches, homes, and commercial buildings. They combine the tradition of architectural glass making with 21st century technology. Judson Studios has created architectural glass pieces for Walt Disney World, the University of Southern California, and several original and restored projects for Frank Lloyd Wright’s Hollyhock House and Unity Temple. Bullseye Glass Co. is a manufacturer of colored glass for art and architecture with worldwide distribution and a strong commitment to research, education, and promoting glass art. It is based in Portland, Oregon. Bullseye Glass is
widely known as the first company in the world to formulate and manufacture glasses that are factory-tested for compatibility. Bullseye provides more than 1,000 different glass products in a complex color palette to artists worldwide. Artists collaborating with Bullseye include Rafael Cauduro, Jessica Loughlin, Clifford Rainey and several others. Hillsides is a premier provider dedicated to improving the overall well-being and functioning of vulnerable children, youth, and their families for more than 100 years. By providing high quality care, advocacy and services, Hillsides executes its vision to create lasting change in the lives of at-risk children and youth. Hillsides offers numerous community-based programs and services through several Hillsides Family Resource Centers in Los Angeles County, including the San Gabriel Valley and Pasadena. These centers provide parenting classes, mental health support, and additional crucial resources for vulnerable children and families.
Carl E. Anderson
Jodi Shoemake
Sheri McCanless
626.204.1510
626.204.1524
626.204.1508
CA BRE License 00785702
CA BRE License 01833063
CA BRE License 01306519
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.
