CAPITAL MARKETS INSTITUTIONAL PROPERTIES

Transcription

1 CAPITAL MARKETS INSTITUTIONAL PROPERTIES P A S A D E N A A R E C E N T LY R E N O VAT E D C R E AT I V E O F F I C E M P U S PA S A D E N A,

2 THE OFFERING 465 Halstead (the Property ), is a unique and newly renovated 238,837 square foot creative office project sitting on an expansive 9.6 acres in Pasadena, CA. The Property s thoughtful improvements and appealing lowrise architectural elements, coupled with the amenity rich, transit-oriented location have transformed 465 Halstead into one of the most desirable and successful creative office projects in the Tri-Cities area of Los Angeles. PROPERTY OVERVIEW Building Address 465 North Halstead Pasadena, CA Total Building Area 238,837 Square Feet Land Area 9.6 Acres - 418,612 Square Feet Year Built/ Renovated 1958/2015 Parking Ratio 3.3/1,000 Square Feet Occupancy 89% Number of Tenants 8 Office Tenants, plus the 24 Hour Fitness Gym 2

3 DESIGNED TO RETAIN TOP TALENT ACROSS A VARIETY OF INDUSTRIES o Collaborative outdoor space o Efficient open-plan floor plates, impressive +12 ceiling heights, and polished concrete floors providing a unique sense of QUALITY CREATIVE URBAN The Seller completed a full, creative office renovation in 2015 at a cost of over $5.5 million, not including tenant improvements. The renovations were thoughtfully designed to attract Pasadena s accelerating technology and creative tenant base, and as a result, the building absorbed over 110,000 square feet from tenants including Giant Magellan Telescope (GMTO) and Community Bank in a span of 12 months. space and comfort o Abundant 3.3/1,000 surface parking o High-speed fiber-optic connections provided by Charter and Verizon, essential for technology and media tenants o Unique private entrances CREATIVE TENANT BUILD-OUTS WITH SUSTAINABLE VALUE o Approximately 72% of the current office space features creative, open floor plan improvements with substantial overstandard landlord and tenant investment o These high-quality tenant improvements have a proven reusability, resulting in less downtime and required capital upon re-leasing TRANSIT-ORIENTED LOCATION WITH ABUNDANT AMENITIES o Within walking distance to numerous retailers, 465 Halstead boasts a Very Walkable Walk Score of 77 o Over 50 restaurants nearby including: Whole Foods, Starbucks, Stonefire Grill, Chipotle, Panda Inn, Island s, Panera Bread, Habit Burger Grill, and Peet s Coffee o Located just blocks away from the Sierra Madre Metro Gold Line Station, providing immediate access to Downtown Pasadena, Downtown Los Angeles, and the entire San Gabriel Valley 3

4 merous PROVEN TENANT APPEAL WITH STRONG CREDIT PROFILES Major Tenants Ft. % of NRA Gateway Metro Center is walking distance to numerous Gateway Metro Center is walking distance tosq.numerous Community Bank 83, % 465 Halstead s appeal as a collaborative and convenient creative office environment has successfully attracted a diverse and vibrant desired retailers and over 50 restaurants. desired retailers and over 50 Giant restaurants. Magellan 46, % tenant base from a variety of industries including technology, finance, health, and research and development. Oct-2022 Telescope (GMTO) OeWaves ok Burger Kabuki Stonefire Grill Shogun Hook Burger Kabuki Stonefire Grill 22, Hour Fitness Bowlmor Shogun PNC Bank Bowlmor 9.27% Hook Burger Dec , % May , % Jan-2020 Bowlmor SIGNIFICANT UPSIDE POTENTIAL BELOW MARKET IN-PLACE RENTS: As a result of the fast lease up during the renovation, the building has a high percentage of tenants at under market rents. Inplace rents are 15% below today s market rents for the building and 35% below the average Pasadena 210 E. FOOTHILL BOULEVARD RAPIDLY ACCELERATING OFFICE MARKET: The Pasadena office market has experienced 28% rent Ha ea lst growth and approximately 540,000 square feet of new in-migration and expansion since CBRE t ds t ds Econometric Advisors forecasts that Pasadena rents will grow 19.4% by BOULE VARD upon lease rollover. d ea E VI Panda Inn MA DR Metro Gold Line Station Pasadena formally adopted its revised General Plan on August 18, 2015, increasing the allowable FAR on the site to 2.0, with a Medium Commercial Zoning. The 9.6 acre site is currently developed to a 0.58 FAR Metro Gold Line Panda Inn Station which will allow for an additional 600,000 square feet of commercial space on the site. SIER RA Panda Inn LLA P A S A D E N A AVE NUE FUTURE REDEVELOPMENT OPPORTUNITY: The City of N. ROS EMEAD Class A rents, providing increased revenue potential ill Blv E Footh lst LS HA T EE R ST Ha D A TE The Stuart at Sierra Madre Villa Hines Residential 188 Units Development 212 Units N N d ill Blv E Footh ld Line on s Expiration Feb-2020 Pasadena is one of the strongest Over 294,000 vehicles pass by the Location Highlights Property on the 210 (Foothill) Freeway daily. Over 294,000 vehicles pass by the 294,000 vehicle office markets in Los Over Angeles Location Highlights Property on the 210 (Foothill) Freeway daily. with a 15 year average Property on the 210 ( Neighboring the soon to be complete 212Adjacent unit to the 210 (Foothill) Freeway, the site provides The Ellington by Hines Development, (estimated completion Dec 2015), and the existing luxury 188 unitone block directly to the east and west ramps each Stuart Apartments. of the Property. Pro-business tax benefits - no city business taxes, Less than one block from the Sierra Madre Villa 4 occupancy of over 91%. Neighboring the soon to b Neighboring the soon to be complete 212 unit Adjacent to the 210 (Foothill) Freeway, the site provides The Ellington by Hines Development, (estimated completion Dec 2015), and the existing 188block unit directly to the east and west rampsluxury each one Stuart Apartments. of the Property. Pro-business tax benefits - no cityless business than taxes, one block from the Sierra Madre Villa The Ellington by Hines Dev completion Dec 2015), and Stuart Apartments. Pro-business tax benefits -

5 TECHNOLOGY TENANT APPEAL Pasadena is home to world class universities and technology related institutions such as JPL, Caltech, Art Center College of Design, and a number of Fortune 500 companies because it provides a unique pro-business environment that promotes innovation and growth. Many of the tenants at 465 Halstead, including GMTO, Sierra Lobo, and OeWaves, have located in the building because of its direct access to JPL, CalTech, and the highly educated work force found at these institutions. Pasadena is where the most remarkable minds in science, technology, and design come together to build successful companies. Beating out San Jose, Seattle, Austin and Portland with nearly one in six jobs in the professional or creative fields, Pasadena nurtures these industry clusters by providing an environment that fosters growth and groundbreaking technological ideas. Source: Innovate Pasadena. Proposed rendering of suite 150 EXCELLENT BUSINESS ENVIRONMENT Pasadena combines pro-business tax benefits such as no city business taxes, parking taxes or utility taxes, with a central location and excellent freeway and public transportation access. As a result, Pasadena offers local businesses the ability to draw from an enormous and diverse labor base Nearly half the region s population has a Bachelor s Degree or higher, over 1.5 times the national average while providing local residents easy access to amenities downtown and the surrounding markets. 5

6 P A S A D E N A PA S A D E N A INVESTMENT CONTACTS KEVIN SHANNON President West Coast Capital Markets CA RE License # kevin.shannon@ngkf.com ROB HANNAN Senior Managing Director CA RE License # rob.hannan@ngkf.com KEN WHITE Executive Managing Director CA RE License # ken.white@ngkf.com NATALIE BAZAREVITSCH Senior Vice President CA RE License # natalie.bazarevitsch@cbre.com DAMON FELDMETH First Vice President CA RE License # damon.feldmeth@cbre.com SEAN FULP Executive Managing Director CA RE License # sfulp@ngkf.com LEASING EXPERTS KEVIN DUFFY Senior Vice President CA RE License # kevin.duffy@cbre.com DEBT & STRUCTURED FINANCE BRAD ZAMPA Executive Vice President CA RE License # brad.zampa@cbre.com VAL ACHTEMEIER Executive Vice President CA RE License # val.achtemeier@cbre.com Corporation License CBRE Broker Lic 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.