N. Arrowhead Avenue Rialto, CA Now On The Market For Sale 30,938 RSF

Transcription

1 N. Arrowhead Avenue Now On The Market For Sale 30,938 RSF Unique 16 Unit Multi-Tenant Industrial Incubator Park Fully Leased Separate Parcels Excess Land Capitalize on this opportunity to own an exceptional value add multi-tenant industrial asset significantly below replacement cost with excess land on separate parcels.

2 N. Arrowhead Avenue 1 Investment Overview 2 Location Information 3 Financial Overview Exclusive Advisors Nicholas Chang, CCIM Senior Vice President nchang@naicapital.com CA BRE Lic. # Richard Lee Senior Vice President rlee@naicapital.com CA BRE Lic. # Justin Kuehn Senior Associate jkuehn@naicapital.com CA BRE Lic. # Now On The Market For Sale 30,938 RSF Unique 16 Unit Multi-Tenant Industrial Incubator Park

3 Section 1 Investment Overview

4 Investment Highlights For Sale Rare Investment Opportunity to Acquire a 16 Unit Multi Tenant Industrial Park 16 industrial incubator units ranging in size from 984 SF to 2,816 SF. 30,938 RSF situated on approximately 3.33 Acres of land. Zero Vacancy Asset with built in Upside. Fully Leased. A 2,816 SF B 1,872 SF C 1,872 SF +408 sf mezz. D 1,824 SF +360 sf mezz. E 1,824 SF +360 sf mezz. F 1,872 SF +408 sf mezz. G 1,872 SF H 2,766 SF A 1,872 SF +408 sf mezz. B 1,392 SF C 1,392 SF +408 sf mezz. D 1,344 SF +360 sf mezz. Select units feature 2-story mezzanine office space, approximately 20% office buildout. E 1,344 SF +360 sf mezz. Grade Level Loading, 16 minimum warehouse ceiling heights, separately metered units. Brand New Roof and skylights, just replaced 2Q Unique flexible exit strategy: The property is currently subdivided into 34 Separate parcels thereby providing the investor with a possible condominium owner-user sale exit. Approximately 39,000 SF of excess buildable land to construct up to 17 additional industrial units, for a possible 33 unit industrial park. Private cul-de-sac location, immediate access to the I-10 freeway Excess Land 170 N. Arrowhead Ave 190 N. Arrowhead Ave 104 Auto Parking Stalls I 408 SF F 1,392 SF +408 sf mezz. G 984 SF H 1,446 SF Excess Land Year Built: Separate Parcels NAI CAPITAL UNIQUE 16 UNIT MULTI-TENANT INDUSTRIAL INCUBATOR PARK

5 Investment Features N. Arrowhead Avenue 34 Separately Parceled Units: APN s: thru 47 Current Occupancy: 100% Year 1 Effective Gross Revenue: $254,739 $0.68 PSF Gross Market Rents: $278,000 $0.75 psf Gross Estimated Operating Expenses: $104,664 $0.28 psf Gross This opportunity provides the investor with an incredibly unique value add upside: Rents are 30% under market and with several tenants in month-to-month tenancy, the investor can immediately boost the cash flow of the asset which creates income upside. The property is subdivided into 34 separate parcels allowing for a condominium exit strategy which creates equity upside. The property features 17 undeveloped parcels totaling 39,000 SF of excess buildable land, creating a zero land basis upside. Arrowhead Ave NAI CAPITAL UNIQUE 16 UNIT MULTI-TENANT INDUSTRIAL INCUBATOR PARK

6 Section 2 Location Information

7 Location Maps N. Arrowhead Avenue 66 18,000 CPD Cactus Ave W Rialto Ave 9,000 CPD NAI CAPITAL UNIQUE 16 UNIT MULTI-TENANT INDUSTRIAL INCUBATOR PARK

8 Rialto Area Overview N. Arrowhead Avenue Rialto is the sixth largest city in San Bernardino County, and the eleventh largest city in the Inland Empire overall. The city is situated between Interstate 10 and Interstate 210, giving it prime access to the Greater Los Angeles Area. The Interstate 10 also connects Rialto and the Greater Los Angeles area to neighboring Arizona and New Mexico, giving the city access to several markets and distribution networks outside of California. Rialto is also served by the Metrolink Regional Rail Service on the Metrolink San Bernardino Line, which gives Rialto access to the surrounding Inland Empire. Rank Employer Employees 1 Rialto School District 2,251 2 Fed Ex -Ground 1,750 Rialto has a mix of manufacturing, distribution, service and retail businesses. In 2014, the city of Rialto had $1,044,504,000 in taxable sales, or about 3.2% of the total in San Bernardino County. Rialto is also home to several major regional distribution centers for companies including Target, Under Armour and Staples. Many of these distribution centers serve as the hub for the entire West Coast of the United States, giving Rialto significant economic advantage over other cities in the Inland Empire. Commercial properties remain in high demand as market fundaments continue to remain solid. Rialto s office market s vacancy rate has also consistently outperformed that of the Inland Empire as a whole. The vacancy rate in Rialto has dropped 30 basis points over the year to 7.0%, making it lower than the Inland Empire as a whole. Similarly, the vacancy rate for industrial property in Rialto declined from 18.3% in 2015, to 7.5% in 2016, and has held stead going into All of these factors combined show that Rialto has a strengthening economy overall and possesses a growing consumer base. As of 1Q 2017, Retail properties total 2,708,071 square feet of rentable building area in the market and have an 11.2% vacancy rate. The average asking rent for retail properties in Rialto this quarter was $1.30/SF NNN, which is a growth of 13.4% from last year. Although local market conditions are continuing to improve, the retail industry is being affected by a nationwide restructuring of retail trade, and local vacancies will take time to be reabsorbed. As of 2016, there were approximately 101,968 residents in Rialto, and the population is expected to continue to grow by 0.53% between 2016 and By 2021, the total population of the city is expected to be 104,715 according to Esri. There are approximately 25,574 households in Rialto, with an estimated average household income of $63,672. Average household income is projected to continue growing each year by 1.39%, and is estimated to total $68,207 by This indicates a strong and growing consumer base that can bolster Rialto s burgeoning retail market. 3 Target - Distribution Staples Distribution Center Eagle Roofing Products Wal-Mart Biscomerica Corporation Crestview Convalescent Hospital Home Depot 215 Source: 101,968 Residents 25,574 Households $63,672 Household Income NAI CAPITAL UNIQUE 16 UNIT MULTI-TENANT INDUSTRIAL INCUBATOR PARK

9 Section 3 Financial Overview

10 Rent Roll N. Arrowhead Avenue Unit Tenant Square Feet Base Rent PSF Monthly Rent Total Gross Rent Start Date Security Deposit CAM PSF Monthly CAM Escalations Expiration Date 170-A Peskie & Ramirez 2,816 $0.62 $1, $22, /01/2017 $3, $0.05 $ % 08/31/ B Salvador Rodriguez 1,872 $0.45 $ $10, /01/2010 $1, MTM 170-C Miguel Bernardino 2,280 $0.44 $1, $12, /01/2008 $1, /31/ D Takara JJ Commerce 2,184 $0.63 $1, $16, /01/2011 $1, /01/ E Just Doors, Inc. 2,184 $0.58 $1, $16, /01/2016 $2, $0.05 $ % 08/30/ F United Turbine Sales 2,280 $0.48 $1, $13, /08/1999 $0.00 MTM 170-G Elias Chavez 1,872 $0.45 $ $10, /15/2011 $1, /31/ H Champion Fitness 2,766 $0.71 $1, $23, /01/2006 $2, MTM 190-ABC CPSRC, Inc. 4,638 $0.68 $3, $37, /07/1999 $0.00 MTM 190-D Jose Herrera 1,704 $0.45 $ $9, /15/2012 $ MTM 190-E Turner Packaging 1,704 $0.65 $1, $14, /01/2018 $2, $0.05 $ % 05/30/ F UBDT, Inc. 1,800 $0.58 $1, $13, /01/2016 $2, $0.05 $ % 09/30/ G Inland Empire Video Games 984 $0.30 $ $3, /16/1992 $0.00 MTM 190-H Uni-Flex Silicone Products 1,446 $0.63 $ $11, /01/2008 $2, $0.05 $ /30/ I Property Manager $0.00 Totals: $17, $214, NAI CAPITAL UNIQUE 16 UNIT MULTI-TENANT INDUSTRIAL INCUBATOR PARK

11 Cash Flow Statement N. Arrowhead Avenue Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For the Years Ending Jun-2019 Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027 Jun-2028 Potential Gross Revenue Base Rental Revenue $244,133 $262,700 $271,769 $280,207 $291,494 $300,651 $309,261 $318,527 $328,173 $338,013 Absorption & Turnover Vacancy (3,171) (3,916) (13,943) (3,465) (6,497) (13,812) (5,210) (7,099) (20,785) Base Rent Abatements (4,756) (5,873) (12,640) (13,471) (9,745) (27,593) (11,643) (28,097) Scheduled Base Rental Revenue 236, , , , , , , , , ,131 CAM Revenue 21,586 24,183 23,659 25,004 25,295 24,828 25,559 25,409 25,987 24,400 OpEx Pass Thru Revenue 957 2,672 4,061 2,658 3,003 4,445 2,611 3,055 4,715 2,690 Total Potential Gross Revenue 258, , , , , , , , , ,221 General Vacancy (4,010) (3,790) (4,537) (1,956) (3,240) (2,108) (9,845) Effective Gross Revenue 254, , , , , , , , , ,221 Operating Expenses Property Taxes 42,809 43,665 44,538 45,429 46,337 47,264 48,209 49,173 50,157 51,161 Property Insurance 4,418 4,508 4,595 4,690 4,783 4,878 4,975 5,077 5,175 5,281 Utilities - Trash 18,009 18,368 18,736 19,111 19,493 19,883 20,279 20,687 21,100 21,520 Utilities - Electricity 3,154 3,218 3,281 3,348 3,413 3,482 3,552 3,623 3,695 3,769 Utilities - Alarm Monitoring 2,155 2,198 2,239 2,287 2,332 2,379 2,426 2,474 2,523 2,574 Utilities - Phone Lines 3,508 3,579 3,650 3,723 3,798 3,873 3,952 4,029 4,110 4,193 Utilities - Water 8,737 8,911 9,092 9,271 9,457 9,644 9,841 10,034 10,237 10,442 Utilities - Sewer 1,373 1,400 1,429 1,456 1,485 1,517 1,547 1,576 1,610 1,641 Landscaping 7,852 8,009 8,170 8,332 8,499 8,669 8,843 9,020 9,200 9,383 Rialto Water Services Pest Control R&M - General 6,040 6,160 6,285 6,408 6,539 6,668 6,802 6,939 7,077 7,217 R&M-HVAC Contracts/Maint Management Fee 5,436 5,544 5,657 5,768 5,885 6,002 6,121 6,243 6,371 6,496 Total Operating Expenses 104, , , , , , , , , ,080 Net Operating Income 150, , , , , , , , , ,141 Income projections are hypothetical in nature and in no way guaranteed or implied. NAI CAPITAL UNIQUE 16 UNIT MULTI-TENANT INDUSTRIAL INCUBATOR PARK

12 Now On The Market For Sale - 30,938 RSF Unique 16 Unit Multi-Tenant Industrial Incubator Park Fully Leased Separate Parcels Excess Land N. Arrowhead Avenue, Rialto CA For More Information Or To Schedule a Tour Please Contact Your Exclusive Advisors: Nicholas Chang, CCIM Senior Vice President nchang@naicapital.com Richard Lee Senior Vice President rlee@naicapital.com Justin Kuehn Senior Associate jkuehn@naicapital.com CA BRE Lic. # CA BRE Lic. # CA BRE 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. CA BRE Lic. #