367 North 2nd Avenue HIGH QUALITY TROPHY OFFICE BUILDING. Steve Body, MA, MSF, MSTA. Grant Bullen AVAILABLE FOR SALE

Transcription

1 HIGH QUALITY TROPHY OFFICE BUILDING AVAILABLE FOR SALE 367 North 2nd Avenue OFFERING MEMORANDUM Single Tenant Investment Opportunity Steve Body, MA, MSF, MSTA Vice President Cal DRE Lic # Grant Bullen Associate Cal DRE Lic #

2 Table of Contents 01 Property & Location 02 Financial Summary 03 Property Photos Steve Body, MA, MSF, MSTA Vice President Cal DRE Lic # 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. Cal DRE Lic # Grant Bullen Associate gbullen@naicapital.com Cal DRE Lic #

3 01 Property & Location

4 Property Overview NAI Capital, Inc. is pleased to introduce 367 North 2nd Ave Upland, CA as a high-quality investment opportunity with long-term tenant in place. The Property is a recently renovated 4,965 SF, 2-story professional office building in superior condition. Built in 1960, the Property was completely renovated in 2009 at the cost of over $600,000. A new 2nd floor was also added to the building with skylights in every office and the conference room. The building is situated on a 4,900 SF (0.11 Acre) corner lot within comfortable walking distance from the Metrolink station that connects Upland to downtown Los Angeles and San Bernardino. Direct access to I-10 just minutes from the site. There are 3 surface parking spaces and about 60 free public parking spots immediately adjacent to the building. There are fourteen (14) offices (9 with skylights); two (2) conference rooms; two (2) bathrooms, a reception area; a kitchen and a small finished basement. Previously, the building was occupied by a wellknown law firm and a busy medical office for one of the largest pain management practices in the greater Los Angeles area. Current tenant is the administrative headquarters of a large elementary and middle school charter system that serves 1,700 students in 7 locations. Current lease expires in May 2023, and tenant has two (2) five (5) year renewal options with yearly increases. Steve Body, MA, MSF, MSTA Grant Bullen Vice President Associate NAI Capital NAI Capital Steve sbody@naicapital.com Body, MA, MSF, MSTA Vice President NAI Capital Grant Bullen, Associate gbullen@naicapital.com

5 Property Highlights INVESTMENT SUMMARY Price: $1,235,000 Net Operating Income: $86,391 Cap Rate: 7.0% Lease: 5 Year Single Tenant Lease with renewal options Lease Expiration: May 31, 2023 Tenant: Long Trem Institutional Credit Tenant A 2-Story Recently Renovated Professional Office Building In Superior Condition High-Visibility Trophy Building Luxurious Interior Updates: Wrought Iron Staircase, Oversized Granite Conference Table, Marble Countertops, Hardwood and Ceramic Tile Floors, Crown Molding Proven Location - Long-Term Professional Use Ideal For Single Tenant NNN Investor High-Quality Institutional Tenant Fourteen (14) Offices: Two (2) Conference Rooms, Two (2) Bathrooms Convenient Floor Plan With 360 Degree Window Lines Skylight in Every Office on 2Nd Floor Security Key Access/ Motion Sensors / Camera Convenient Client And Employee Access From Surrounding Areas Ideal For 1031 Exchange Buyer 7.0% Cap Rate 5

6 Property Details E C Street N 2nd Avenue SITE Euclid Avenue Euclid Avenue D Street 83 PROPERTY INFORMATION Year Built: 1960 Building Size: 4,965 SF Lot Size: 4,900 Sf (0.11 Acre) L Parking: 3 Surface Parking And Approx. 60 Free Public Parking Zoning: Sp Specific Plan Overlay Zone (Historic Downtown Upland APN #: Lease: 5 Year Term With 2 Renewal Options Cap Rate: 7.0% 6

7 Floor Plan 1 ST FLOOR BUILDING SKETCH ± 4,965 GROSS SF 2 ND FLOOR 7

8 Location Overview LOCATION HIGHLIGHTS Desirable Location in Historic Downtown Upland - LIMITED INVENTORY Direct Access to I-10 Freeway On-Ramp Just a Few Blocks South of the Property Corner Location High Visibility Dynamic Neighborhood: Historic Downtown Location with Restaurants, Shopping, Movie Theaters and Entertainment Area Well-Educated Labor Force 157,712 Daytime Employees within a 5 Mile Commuting Distance Excellent Access to FWYs I-10, I-15, Rt. 210 and Ontario International Airport OFFICE SUBMARKET The Upland office market is conveniently located next to the Ontario Airport with about 13.3 M SF total inventory. There are 225 Office Buildings in the City of Upland with a total size of about 2,171,087 SF. Average building age is about 48 years with an occupancy rate of about 92%. Net absorption was at its 5 year high with 51,000 SF new occupancy during the 1st half of Leasing activity in the first half of 2018 was about 95,000 SF, which equates to about 95% of the total leases signed in Asking rental rates increased steadily since 2015 to about 1.75/SF. Average asking price was over $300/SF in 2017, with a cap rate of 6.4%. New constructions were up about 55,000 SF in 2018, about 2.3% of the total Upland office market. Due to the limited supply of new office space being approved for future development, rents and sale prices are expected to continue to rise at a measured rate. Source: CoStar 8

9 UPLAND, CALIFORNIA Previously named North Ontario, the City of Upland is ideally located between Ontario and Rancho Cucamonga, two of the largest cities in San Bernardino County. The City was incorporated in 1906 and has a population close to 74,000 people. About 36 miles east of Los Angeles, the City borders I-10, one of the busiest highways in California and it is just a mile from the Ontario International Airport. The City is adjacent to the Ontario Airport, the economic center of the Inland Empire. The top employer is San Antonio Community Hospital, a 363-bed acute care regional medical center established in Market Area Source: CoStar $80,989 Average Household Income 408,655 Estimated Population 157,712 Total Employment $3.5 Billion Total Consumer Spending # Employer # of Employees 1 San Antonio Community Hospital 1,998 2 Upland Unified School District 1,200 3 City of Upland Walmart Upland Rehabilitation & Care Center Target Lewis Group of Companies Kohl's Holliday Rock The Home Depot 141 9

10 Retail Area Map Starbucks Vons Jamba Juice Chase Bank Citibank Marshalls Big 5 Sporting Goods McDonald's 66 Shaky s Pizza Upland Metrolink Station Union Bank IHOP Upland City Hall Public Library US Postal Service George M Gibson Senior Center The Grove Theatre Subway Restaurant 7-Eleven Upland Elementary School 83 US Postal Service City of Upland Upland Public Library Upland Elementary School San Antonio Regional Hospital Emergency Rooom San Antonio Regional Hospital San Antonio Community Hospital McDonalds, AutoZone Pep Boys Auto Parts CVS Shaky s Pizza 7-Eleven Subway SITE George M Gibson Senior Center Marshalls Bank of America Chase Bank Citibank Union Bank The Grove Theatre Vons Supermarket Jamba Juice IHOP Upland Station Starbucks 24 Hour Fitness Marshalls Big 5 Sporting Goods 10

11 Location Maps SITE 66 N 1St Avenue FREE PARKING 10 SITE N 2nd Avenue E C Street 83 11

12 02 Financial Summary

13 Financial Summary Price $1,235,000 Net Operating Income $86,391 Cap Rate 7.0% Asking Price Lease 5 Year Single Tenant Lease with Renewal Options $1,235,000 Initial Lease Expiration May 31,

14 Upland Office Sales No. LOCATION CENTER NAME SALE/LIST DATE YEAR BUILT BUILDING SIZE QUALITY SALE PRICE $/SF RECENT SALES W 9TH ST UPLAND, CA 7/7/ ,012 C $330,000 $ W 9TH ST UPLAND, CA 2/9/ /2006R 2,646 A $665,000 $ E 11TH ST # 102 UPLAND, CA 2/28/ ,095 B $250,000 $ N 13TH AVE #101 UPLAND, CA 2/23/ ,403 B $580,000 $413 14

15 Sales N 13TH AVE UPLAND, CA 4/27/ ,716 B $2,250,000 $ N BENSON AVE UPLAND, CA 7/10/ ,950 B $1,215,000 $ W FOOTHILL BLVD UPLAND, CA 5/22/ ,080 B $1,550,000 $ N MOUNTAIN AVE UPLAND, CA 3/30/ ,700 B $1,550,000 $272 SURVEY AVERAGE $282 SUBJECT PROPERTY N 2ND AVE UPLAND, CA For Sale 1960/2009 4,950 A 1,235,000 $249 15

16 03 Property Photos

17 Property Photos 17

18 NAI Capital Southern California Office Locations Headquarters Ventura Blvd., Ste. 200 Los Angeles, CA Property Management 1201/2 South El Camino Real, Ste. 210 San Clemente, CA Los Angeles County Downtown LA 601 S. Figueroa St., Ste 3825 Los Angeles, CA West Los Angeles Olympic Blvd., Ste. 700E Los Angeles, CA Torrance 970 W. 190th St. Dr., Ste. 100 Torrance, CA Pasadena 225 S. Lake Ave., Ste Pasadena, CA Valencia Tourney Rd., Ste. 200 Valencia, CA Diamond Bar E. Copley Dr., Ste. 320 Diamond Bar, CA Ventura County Oxnard 300 Esplanade Dr., Ste Oxnard, CA Westlake Village 2555 Townsgate Rd., Ste. 320 Westlake Village, CA Orange County Irvine 1920 Main St., Ste. 100 Irvine, CA Inland Empire Ontario 800 N. Haven Dr., Ste. 400 Ontario, CA Temecula Jefferson Ave., Ste. 330 Temecula, CA Victorville Park Avenure, Ste. 206 Victorville, CA Coachella Valley Palm Desert Gerald Ford Dr., Ste. 200 Palm Desert, CA Single Tenant Investment Opportunity in a Trophy Building Available for Sale 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. Cal DRE Lic. # NAI Capital Encino Ventura Blvd. Suite 200 Encino, CA Primary Contact Steve Body, MA, MSF, MSTA Vice President sbody@naicapital.com Cal DRE Lic # Grant Bullen Associate gbullen@naicapital.com Cal DRE Lic #