CORPORATE HEADQUARTERS SINGLE TENANT 20-YEAR FIRM SALE LEASE BACK

Transcription

1 100% LEASED CLASS A 3-STORY OFFICE BUILDING CORPORATE HEADQUARTERS A n a h e i m C a l i f o r n i a SINGLE TENANT 20-YEAR FIRM SALE LEASE BACK JANUARY 2017

2 THE OFFERING Newmark Grubb Knight Frank (NGKF), as exclusive advisor, is pleased to present the excellent opportunity to acquire the PacSun Corporate Headquarters (the Property). The Property will be a 100% leased, three-story office building totaling ±180,000 rentable square feet. Pacific Sunwear of California, LLC. (PacSun) will be executing a 20-year firm sale lease-back with 3% annual increases. The PacSun Corporate Headquarters is situated on ±7.66 acres and is surrounded by numerous retail and service amenities and a diversified employment base. The Property offers a surface parking ratio of ±3.77 per 1,000 rentable square feet and outstanding accessibility with four major freeways in close proximity. Tenants have easy access to the Riverside (SR-91), Santa Ana (I-5), Costa Mesa (SR-55) and Orange (SR-57) Freeways, providing convenient commutes to all of Southern California. The Property is an outstanding investment opportunity to purchase a stable, high-yielding asset with long-term tenancy in a supply constrained submarket poised for significant growth. This opportunity is being offered un-priced and on an as is basis for the fee interest in the building and land thereunder. THE PACSUN CORPORATE HEADQUARTERS IS DESIGNED AND CONSTRUCTED TO HIGH TECHNICAL SPECIFICATIONS, CAPABLE OF ACCOMMODATING THE BROADEST RANGE AND MOST DEMANDING OCCUPANCY REQUIREMENTS. 2

3 INVESTMENT HIGHLIGHTS THE PACSUN CORPORATE HEADQUARTERS IS AN INSTITUTIONAL-QUALITY, SINGLE-TENANT OFFICE BUILDING Built in 2002 as a built-to-suit for Pacific Sunwear of California, the Property is a three-story, ±180,000-rentablesquare-foot office building, offering ample surface parking, large floor plates, fully operational cafeteria, outdoor sport courts and high corporate identity. High construction costs and extensive wait times needed for permitting approvals, combined with supply constraints of raw land, have created significant barriers of entry for competitive development in the immediate area. This will increase upward pressure on rental rates and value appreciation. SECURE, LONG-TERM, NET-LEASED INCOME STREAM OFFERING STRONG RETURNS The Property will be 100% leased to Pacific Sunwear of California through 2037, providing an investor the stability of a long-term NNN lease with a leading specialty retailer uniquely rooted in the action sports, fashion and music influences of the Los Angeles lifestyle. Pacific Sunwear of California will execute a 20-year sale lease-back of the Property at an in-place rent that is equal to current market rents, providing a stable cash flow that benefits from annual 3% rental increases. UNPARALLELED CENTRAL ORANGE COUNTY LOCATION ±180,000 RSF ±7.66 ACRES ±3.77/1,000 SURFACE PARKING 4 MAJOR FREEWAYS NEARBY The PacSun Corporate Headquarters location provides convenient access to business, residential and recreational opportunities throughout the region. The Property is located in close proximity to the Riverside (SR-91) Freeway with excellent access to the Orange (SR-57), Costa Mesa (SR-55) and Santa Ana (I-5) Freeways, which provide connections to the entire Southern California region. Additionally, the Property is ideally situated to appeal to decision-makers in growth industries such as technology, financial services, retail and healthcare. The city of Anaheim is a top-pick for executives and employees looking for a range of high-quality housing, excellent schools and proximity to amenities and entertainment venues with great transportation infrastructure. DISCOUNT TO REPLACEMENT COST The PacSun Corporate Headquarters is a premier office headquarters in Orange County, designed and constructed to high technical standards, capable of accommodating the broadest range and most demanding occupancy requirements. The Property is expected to trade at a significant discount to replacement cost, as high construction costs and stringent government approvals, coupled with supply constraints, have created significant barriers to competitive office product development. POSITIVE MARKET FUNDAMENTALS AND LONG-TERM STABILITY OF ORANGE COUNTY Over the past 12 months, the Central Orange County submarket has seen over 125,293 square feet of positive net absorption. As of the fourth quarter of 2016, Orange County has experienced 12 quarters of positive net absorption and its fourteenth quarter of consecutive increases in average asking lease rates a sign of stabilization. 3

4 TENANT SUMMARY Pacific Sunwear of California, LLC, together with its subsidiaries, is a leading specialty retailer rooted in the Los Angeles lifestyle, bringing a curated offering of the most coveted brands, great style and on-trend fashion and denim to year olds The company was founded in Newport Beach, California, in 1980 and is now headquartered in Anaheim, California The company sells casual apparel, accessories and footwear designed for teens and young adults As of January 31, 2017, the company leases and operates 494 stores throughout the United States and Puerto Rico The company operates retail stores under the brand names Pacific Sunwear and PacSun, and an e-commerce website at which sells PacSun merchandise and provides content and a community for its customers In September 2016, Golden Gate Capital acquired PacSun as part of a plan of reorganization that included a significant reduction in long-term debt and occupancy costs Golden Gate Capital invested $20 million in new capital into the reorganized company to support the long-term growth of the business PROPERTY SUMMARY Address 3450 East Miraloma Avenue Anaheim, CA Occupancy 100% Stories 3 Site Area ±7.66 acres Surface Parking Ratio ±3.77/1,000 RSF Year Built 2002 PACSUN LEASE SUMMARY Tenant Pacific Sunwear of California, LLC Leased SF ±180,000 % of Property 100% Lease Term 20 Years Starting Rental Rate $1.50/SF NNN Annual Increases 3.00% 4

5 ANAHEIM HILLS ORANGE SANTA ANA RIVER LAKE ANAHEIM KAISER PERMANENTE MEDICAL CENTER EAST LA PALMA AVENUE NORTH TUSTIN AVENUE GROVE STREET NORTH MILLER STREET THE PACSUN CORPORATE HEADQUARTERS LOCATION PROVIDES CONVENIENT ACCESS TO BUSINESS, RESIDENTIAL AND RECREATIONAL OPPORTUNITIES THROUGHOUT THE REGION. ANAHEIM RESERVOIR EAST MIRALOMA AVENUE 05

6 ± CORPORATE HEADQUARTERS A n a h e i m C a l i f o r n i a The broker for a purchaser of the Property shall be entitled to receive a real estate commission only in the event that broker and the Property s owner execute a written commission agreement, containing the manner of calculation of that commission and all conditions to its payment and the satisfaction of those conditions. Absent a written agreement to the contrary between that broker and NGKF, that broker shall not look to NGKF for payment of such a commission or any other compensation. Although all information furnished regarding Property for sale, lease, or financing has been obtained from sources deemed to be reliable, that information has not been verified by NGKF and no express representation is made nor is any to be implied as to the accuracy thereof. That information is subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice and to any special conditions imposed by NGKF s client. INVESTMENT CONTACTS Kevin Shannon President, West Coast Capital Markets kevin.shannon@ngkf.com CA RE # Ken White Executive Managing Director ken.white@ngkf.com CA RE # Paul Jones Senior Managing Director paul.jones@ngkf.com CA RE # FINANCING CONTACT LOCAL MARKET EXPERT Val Achtemeier Rick Warner Executive Vice President val.achtemeier@cbre.com CA RE # Senior Vice President rick.warner@cbre.com CA RE # Blake Bokosky Director blake.bokosky@ngkf.com CA RE # Onno Zwaneveld Executive Vice President onno.zwaneveld@cbre.com CA RE # Corporate License #