POMONA BUSINESS PARK

Transcription

1 O F F E R I N G M E M O R A N D U M EAST MONTEREY AVENUE & 225 NORTH PALOMARES STREET POMONA, CALIFORNIA HIGHLY FUNCTIONAL INDUSTRIAL BUILDING TOTALING 65,935 SF 86% LEASED TO QUALITY TENANTS STRATEGIC SAN GABRIEL VALLEY LCOATION A CBRE NATIONAL PARTNERS INDUSTRIAL INVESTMENT OPPORTUNITY

2 THE OFFERING CBRE, Inc. is pleased to offer an excellent opportunity to acquire Pomona Business Park, a 65,935 SF industrial building that is currently 86% leased to quality tenants. Pomona Business Park is strategically located in an infill location in the San Gabriel Valley with excellent accessibility to the I-, SR- and SR-71 Freeways. The San Gabriel Valley is one of the most highly sought after industrial markets as evidenced by the very low 0.6% vacancy rate as of Q PROPERTY HIGHLIGHTS Functional Business Park with Attractive Features Functional industrial building totaling 65,935 SF. Unit sizes are standard for this market and very attractive for small business users. Flexible unit sizes, ranging from 1,435 to 13,738 SF offer opportunity for tenants to expand within the building. Units are separately metered, clear height is approximately 14 (typical in this market for this type of building), and nearly every unit features a ground level door. Below Replacement Cost Increasing construction costs and land values coupled with a lack of available land have created barriers to new development in the Pomona market. This provides an opportunity to purchase this property at a price well below replacement cost, which is estimated to be in the $130/psf range. Address East Monterey Avenue & 225 North Palomares Street Square Footage 65,935 SF Land Size (Acres) 3.91 Acres Office SF/% ±23% Grade Level Doors 21 Clear Height ± 14' Year Built 1980 Occupancy 86% INVESTMENT THESIS Excellent Opportunity To Acquire A 86% Leased, Functional Business Park In The San Gabriel Valley, A Premier Infill Market. 1

3 LOCATION HIGHLIGHTS Strategic Infill Location with Barriers to Entry San Gabriel Valley is a premier infill Southern California submarket. Lack of available land makes for extremely limited opportunities for future competitive developments. Excellent location within a densely populated area as evidenced by over 2 million people living within a 15 mile radius of the property Strategically located between Los Angeles and the Inland Empire, the property is approximately 9 miles from Ontario International Airport, and less than 50 miles from Los Angeles International Airport, Long Beach Airport, and Burbank Airport. Tenants also benefit from the property s close proximity to ample retail amenities, as well other city and transportation services, including the Pomona Transit Center. The retail potential at Pomona Business Park is an attractive feature given the surrounding multifamily developments (including brand new development next door). Retail tenants are attracted to this location given its frontage on Monterey Avenue which experiences high traffic volume at the intersection of Monterey and Palomares, the traffic count is 5,000 cars daily. One block over to the west at the intersection of Monterey and Garey Ave., the traffic count is 27,500 cars daily. TENANCY HIGHLIGHTS Below Market Rents In place rents at Pomona Business Park are approximately 9% below market offering significant future upside in NOI as leases roll. Well-Leased to Quality Tenants 86% leased to several quality tenants including Goodwill Industries, which leases 21% of the property. Other strong tenants include Clear Channel Outdoor, Western University of Health Sciences and Jack s Technologies. 60% of tenants (based on SF) have been at this project over 5 years and 35% of tenants (based on SF) have been at this project over years. MARKET HIGHLIGHTS Strong Market Dynamics The San Gabriel Valley submarket generated over 2.5 MSF of net absorption in 2015 and over 1.3 million SF in the first half of As a result, the vacancy rate decreased to a low 0.6% in Q Smaller units continue to be in high demand in the San Gabriel Valley as evidenced by the 306 leases under 5,000 SF that have occurred in the last 12 months. Pomona boasts a progressive economy, business opportunity, and a strong workforce with attractive shopping, recreational, and real estate offerings. Flexible Zoning/Value Add Opportunity 2 The area is currently zoned as Mixed Use - Light Industrial, permitting also office and limited retail uses. Given the property s location, there is a potential opportunity in the future to re-zone and reentitle the property for high density multi-family residential/condominium use which could potentially garner a higher sales price in the future.

4 Fairplex Dr S Towne Ave LOCAL MAP Val Vista St N Dudley St Kellogg Dr Valley Blvd S Campus Dr W Temple Ave DeVry University Spadra W Mission Blvd 71 Ave Rancheros Humane Way W Orange Grove Ave W Holt Ave W Holt Ave Santa Clara Dr S Dudley St W Mission Blvd 71 S Hamilton Blvd S Hamilton Blvd N White Ave S White Ave W 9th St W Lexington Ave N Garey Ave Pomona Business Park Pomona S Garey Ave E 7th St E 9th St N Palomares Street E Monterey Ave Western University of Health Sciences Pomona Cemetery S Towne Ave E 1st St E Lexington Ave Diamond Bar 60 Golden Springs Dr Village Loop Rd Rio Rancho Rd 60 3

5 AERIAL Cal Poly Pomona 71 Pomona City Hall Pomona Transit Center Pomona Business Park S Garey Ave. E Monterey Street N Palomares Street 4

6 REGIONAL MAP 118 San Fernando 2 15 Lake Arrowhead Van Nuys Sherman Oaks 170 Bel Air Hollywood Beverly Hills Santa Monica LAX Airport Hawthorne Manhattan Beach Torrance Rancho Palos Verdes Santa Catalina Burbank Airport Burbank South Los Angeles Gardena Los Angeles Lynwood Compton Long Beach Port of Los Angeles San Pedro Pasadena 605 Citrus Pomona Business Park Covina Monterey El Monte Park Montebello Pico Rivera Downey Lakewood Norwalk Seal Beach 405 Cypress Walnut 60 Chino Chino Hills 39 Westminster Huntington Beach Fullerton 55 Newport Beach Anaheim 91 Orange Santa Ana John Wayne Airport 1 Yorba Linda Irvine Laguna Beach Pomona 2 2 Rancho Rialto Claremont Cucamonga Fontana Anaheim Hills 241 Laguna Niguel Ontario Foothill Ranch Lake Forest Mission Viejo Dana Point San Clemente Ontario International Airport 15 Mira Loma Eastvale Norco Corona El Cerrito La Sierra 15 Riverside San Bernardino Colton University Lake Elsinore Moreno Valley Perris Redlands Murrieta Perris Reservoir Temecula Galway Downs 5

7 SITE PLAN E MONTEREY AVE N GIBBS ST A B E A 296 D B D 221 B A C C Building C Building B Building A N PALOMARES ST E COMMERCIAL ST = Office = Grade Level Door 6

8 CAPITAL MARKETS EXPERTS MICHAEL KENDALL Senior Vice President Lic DARLA LONGO Vice Chairman/Managing Director Lic BARBARA EMMONS Vice Chairman Lic NATIONAL PARTNERS WEST DARLA LONGO BARBARA EMMONS BRETT HARTZELL LOCAL MARKET EXPERT JASON CHAO First Vice President Lic DEBT & STRUCTURED FINANCE VAL ACHTEMEIER Executive Vice President Lic REBECCA PERLMUTTER MIKE KENDALL GINA CHRISTEN TAYLOR ODEGARD NORTHEAST Michael D. Hines Brian Fiumara Brad Ruppel SOUTHEAST Chris Riley Frank Fallon Brian Budnick Jennifer Klingler SOUTH CENTRAL Jack Fraker Josh McArtor Jonathan Bryan Heather McClain Ryan Thornton NORTH CENTRAL Mike Caprile Ted Staszak Stephanie Park Kate Dougherty WEST Darla Longo Barbara Emmons Brett Hartzell Rebecca Perlmutter Mike Kendall Taylor Odegard Gina Christen DEBT & STRUCTURED FINANCE Val Achtemeier Steve Roth Steve Kundert Offering integrated real estate capital markets solutions from strategy to execution delivered by a seamless national partnership 2016 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.