TORREYHILLS. Medical Plaza

Transcription

1 TORREYHILLS Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, California License Number

2 TORREYHILLS THE OFFERING HFF has been engaged to extend to qualified investors the opportunity to acquire a 100% fee simple interest in Torrey Hills Medical Plaza ( THMP ), a 44,156 square foot Class A institutional-quality medical office building constructed in 2005 and anchored by investment-grade rated, Fresenius Medical Care (Moody s: Baa3). Located within the Vons anchored Torrey Hills Center in the highly affluent Del Mar Heights/Carmel Valley submarket, the Property features abundant parking (5.4:1,000 SF) with an exclusive, connected two-level parking garage, a diverse medical and dental tenant composition on NNN leases, and freeway accessibility (I-5, I-805, US 56) to all areas of San Diego. TORREY HILLS MEDICAL PLAZA represents a generational opportunity to acquire a core-quality medical office asset in one of the premier submarkets in the country, providing an investor stable in-place cash flow with an investment grade rated anchor tenant in a community with exceptional demographics. 2 EXECUTIVE SUMMARY

3 PROPERTY SUMMARY Location 4765 Carmel Mountain Road San Diego, California Year Built 2005 Site Area 2.59 acres Rentable Area 44,156 SF Percent Leased 92% Total Parking Spaces Parking Ratio Surface Spaces: 14 Structure Spaces: 224 TOTAL SPACES: per 1,000 SF Floors 2 Parcel Number Existing Loan Information Principal Balance: $16,860,000 Interest Rate: 4.25% Amortization: 30 years Maturity Date: December 2025 EXECUTIVE SUMMARY 3

4 TORREYHILLS INVESTMENT HIGHLIGHTS HIGHLY SOUGHT AFTER SUBMARKET WITH EXCEPTIONAL DEMOGRAPHICS Torrey Hills is located within the Del Mar Heights/Carmel Valley submarket, one of the most affluent and highly educated communities on the West Coast. The immediate one-mile radius encircling the property boasts an executive housing market with a median housing value of more than $1 million and an average household income of nearly $185,000. This area is home to exceptionally educated residents, as over 53% of local residents possess post-graduate degrees, compared to 13% for San Diego. INVESTMENT-GRADE ANCHOR TENANT: FRESENIUS MEDICAL CARE Investment-grade tenant (Moody s: Baa3) Fresenius Medical Care (NYSE: FMS), leases 14,616 SF or 33% of the rentable space on an absolute triple net basis through October Worldwide, Fresenius Medical Care is the #1 ranked provider of products and services for people with chronic kidney failure. The growing company has over 60,000 employees and serves 170,000 patients with more than 2,200 dialysis clinics in the United States alone. Fresenius Medical Care has been a tenant at THMP since the property s inception in 2005, increasing their likelihood of renewing. 4 EXECUTIVE SUMMARY

5 STRONG IN-PLACE CASH FLOW Torrey Hills provides a strong in-place cash flow through its 91.6% occupancy with all leases on a triple net basis, translating to a robust in-place net operating income of over $1.5 million. Industry-related tenants create a synergistic medical profile for local consumers medical and dental needs. Additionally, the Property provides a desirable rollover profile, with only 5.3% of the net rentable area expiring over the first three years of the analysis, offering investors stable near-term yields, while having minimal leasing exposure until the fourth year of their hold period. RARE HIGH BARRIERS-TO-ENTRY OPPORTUNITY The Del Mar Heights/Carmel Valley submarket is renowned for being home to a major concentration of research and technology companies that surround the University of California, San Diego, just minutes from Torrey Hills Medical Plaza. With only five medical office buildings within the Del Mar Heights/ Carmel Valley submarket, the exclusivity has led to a current vacancy rate of just 3% and rental rates that have increased 16% over the past two years. THMP has an exceptional historical occupancy (95%+), retention ratio, and asking rates that have reached $3.75 NNN due to a curated tenant roster with highly specialized spaces. MEDICAL GATEWAY LOCATION Torrey Hills is situated in what is locally known as the coastal freeway corridor gateway, being only minutes from SR 56 as well as Interstates 5 and 805. In addition to UCSD s Thornton Hospital, Scripps Research Institute, Scripps Memorial Hospital, The Salk Institute San Diego, and the VA Medical Center provide a large and talented tenant base all within a five mile radius. THMP displays prominently along Carmel Mountain Road (20,000+ average daily traffic) within the Torrey Hills Center, a ±100,000 square foot neighborhood shopping center anchored by Vons. Additional tenants include Wells Fargo, Starbucks, Orangetheory Fitness as well as a variety of other food and service tenants offering desirable amenities to THMP s tenants and their clients. EXECUTIVE SUMMARY 5

6 TORREYHILLS SOUTHWEST AERIAL (364 TOTAL BEDS) (323 TOTAL BEDS) LA JOLLA $1,600,000+ Median Housing Value PACIFIC OCEAN (173 TOTAL BEDS) (357 TOTAL BEDS) 207,000 CA VEHICLES PER DAY RM EL CR E EK Torrey Hills Park RD EL CAMINO REAL IN RD WITHIN A ONE MILE RADIUS FROM TORREY HILLS MEDICAL PLAZA: POST Graduate Degree U N TA 54% EL O M RM CA $184,179 Avg. Household Income $1,000,000+ TORREYHILLS Median Housing Value 6 EXECUTIVE SUMMARY

7 NORTHWEST AERIAL SOLANA BEACH Torrey Pines State Natural Reserve PACIFIC OCEAN DEL MAR $1,294,000+ Median Housing Value Scripps Clinic Carmel Valley 112,067 SF San Dieguito Lagoon $1,181,000+ Median Housing Value EL CAMINO REAL 81,000 VEHICLES PER DAY 207,000 VEHICLES PER DAY Torrey Hills Park Kaiser Permanente Carmel Valley Medical Offices 50,000 SF CARMEL MOUNTAIN RD TORREY HILLS CENTER FOOD & DRINK HEALTH & BEAUTY SERVICES BBQ Republic Gila Rut Aveda Salon A+ Dental Crust Pizzeria Glamour Nails and Massage Dirty Dogs Cups Frozen Yogurt Orangetheory Fitness Dr. Schwab Eye Care Daphne's California Greek Sculpt Fusion Yoga Postal Annex Edible Arrangements Scripps Performing Arts Academy Torrey Hills Chiropractic Porkyland Supercuts Torrey Hills Cleaners Starbucks World Taekwando Academy Torrey Hills Pet Hospital Subway Wundabar Pilates Union Bank Vons Wells Fargo TORREYHILLS EXECUTIVE SUMMARY 7

8 TORREYHILLS TRANSACTION TEAM NATIONAL MEDICAL OFFICE ADVISORS INSTITUTIONAL OFFICE ADVISORS LOCAL MEDICAL OFFICE ADVISORS FINANCING ADVISOR GRAPHICS EVAN KOVAC Managing Director (858) CA Lic. # NICK PSYLLOS Senior Managing Director (858) CA Lic. # PAUL BRAUN Managing Director (858) CA Lic. # ZACK HOLDERMAN Director (858) CA Lic. # CHRISTINA PODLES Graphics Coordinator (858) CA Lic. # ANDREW MILNE Senior Real Estate Analyst (858) CA Lic. # NICK FRASCO Director (858) CA Lic. # CHRIS ROSS Vice President (858) CA Lic. # TRENT JEMMETT Real Estate Analyst (858) CA Lic. # HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.