IN THIS ISSUE OF THE COMMERCIAL BEAT

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1 COMMERCIAL BEAT NEWSLETTER SPRING 2016 ISSUE #20 IN THIS ISSUE OF THE COMMERCIAL BEAT Featured Story GM PROPERTIES AQUIRES SOUTHLAND MANAGEMENT PORTFOLIO UPDATE 2016 NEW DEVELOPMENT FOR LEASE FOR SALE

2 Whenever you find yourself on the side of majority it is time to pause and reflect. -Mark Twain 2 COMMERCIAL BEAT

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4 GM PROPERTIES ACQUIRES SOUTHLAND MANAGEMENT DIVISION OF RESPECTED VILLELLI ENTERPRISES GM Properties, a full-service commercial real estate brokerage and property management company serving Southern California for over 50 years, has extended its area outreach by acquiring the regional property management division of respected, 63-year-old Villelli Enterprises, Inc. of La Habra, announces Jason Jamison, President of GM Properties. GM Properties, which manages more than three million square feet of commercial real estate encompassing an area from Valencia to San Diego, adds 12 new accounts to its portfolio with the Villelli management portfolio. The properties, located in the San Gabriel Valley, the South Bay, Inland Empire and Orange County, include multitenant retail, multi-tenant industrial, multi-tenant office and single tenant retail. Jamison said the properties comprise 150 units and over 125 tenants that raise GM s tenant roll to 1,200 while increasing its square feet under management to 3.75 million. GM is in a growth mode and this transaction expands our footprint in our focused service areas of North Orange County, the Mid-Counties and the San Gabriel Valley. We re excited to carry the torch of the respected service Villelli provided for over six decades, Jamison said. Villelli Enterprises, Inc. (VE), a full-service management company, in addition to providing investment, brokerage and development services, retains its Pacific North West division. 4 COMMERCIAL BEAT

5 Villelli Enterprises, Inc. was incorporated in 1952 by the late Anthony T. Villelli. The corporation was responsible for several developments in North Orange County, including La Habra, Fullerton, Brea, Hacienda Heights, as well as San Bernardino and Riverside Counties. These developments included land entitlements, condominiums, apartments, strip retail centers, office, mobile home parks, multi-tenant industrial parks, and other specialty projects. During the late 1980s, VE developed and followed a planned geographic diversification acquiring and developing major holdings in Washington, Idaho and a 1,400-acre planned development in southern Colorado. Each regional operation (California, Pacific Northwest and Colorado) is managed by a principal living in and thoroughly acquainted with that area. As a real estate investment, management, brokerage and development company, VE offers owners an active conduit and involvement in the brokerage community and services resulting from a substantial portfolio of properties, decades of successful business experience and an excellent reputation. Lee Deierling, Vice President of Villelli, said that their owners and tenants are in good hands. I wanted our management services to remain vital for our owners and tenants and to carry on the respect established by our founder Tony Villelli. We looked around and chose the best company to provide the utmost service to our clients. Jason and his GM staff are capable and efficient, particularly in the area of utilizing the latest technology for vital real time property data. We re comfortable turning over services to them, Deierling said. Serving Southern California, including Los Angeles, Orange, Riverside, San Bernardino and San Diego Counties, GM Properties was recently ranked number eight on the LA Business Journal s top 20 list of industrial property management firms, also being listed on the Journal s top 25 list of office property management firms. SPRING

6 MULTI-TENANT INVESTMENT - LOS ANGELES METRO Artesia Blvd Bellflower, CA Highlights: 100% Occupied, Fourteen (14) Unit Multi Tenant Investment Four (4) Buildings Totaling 21,377 Square Feet Excellent Tenant Mix, Long Term Occupancy Below Market Rents: Value Add Opportunity Huge Monument Sign, Gated Parking Built in 1990, Meticulously Maintained New Roofs on All Buildings within Past 3 Years Prominently Located on Artesia Blvd, East of Lakewood Blvd Immediately South of CA-91 Freeway Adjacent to Stater Bros, Planet Fitness, Starbucks, Denny s MULTI-TENANT INVESTMENT - ORANGE COUNTY Imperial Hwy La Habra, CA Highlights: Multi-Tenant Investment Opportunity 14 industrial units in four industrial buildings Abundant power Imperial Highway frontage Located in heart of La Habra Along highly trafficked Imperial Hwy Easy access to 57 Fwy. 6 COMMERCIAL BEAT

7 CLOSED TRANSACTIONS Magnolia Ave. Anaheim Type: Size: Land 2.1 Acres Generated 13 offers and was sold to a residential developer Allen St. Paramount Type: Size: Industiral 12,000 SF Sold to an owner-user utilizing SBA financing 2522 Lee Ave. South El Monte Type: Size: Land 33,567 SF Generated over 10 offers; sold to an owner user Allport Ave. Santa Fe Springs Type: Size: Industrial 3,239 SF Generated an offer at full asking price, all cash with a quick close. SPRING

8 FEATURED PROPERTIES FOR SALE FOR LEASE 37,314 SF Whittier 10,458 SF Industry 5,570 SF Walnut 16,099 SF Whittier 7,000 SF Whittier 5,284 SF Whittier Michelle Arden (562) E. Washington Blvd., Suite K Whi er, CA PMB PACIFIC MERCANTILE BANK Dawn S lle (562) W. Whi er Blvd. #B La Habra, CA Roof Repair System Tune up Re-roo ng (714) COMMERCIAL BEAT

9 WESTERN REALCO ACQUIRES 30-ACRE FORMER BECKMAN COULTER SITE IN FULLERTON; COMPRISES 600,800 SQ. FT. FULLERTON, CA Ask 10 veteran top producing Southern California commercial real estate brokers, and they ll give you the same answer: Demand for industrial property in the Los Angeles Metro area is intense, but availability is at historic lows, with vacancies in the 2 percent range commonplace. Meanwhile, very little if any new product appears to be in the pipeline. That s why the recent announcement by Western Realco of Newport Beach that it has acquired 30 acres of the former Beckman Coulter factory and office campus in Fullerton is especially notable. The site encompasses 600,800 square feet of space in eight buildings covering a total of 44 acres. Beckman Coulter consolidated its world headquarters in Brea in Western Realco plans to acquire the 14- acre balance of the infill Fullerton site located at Lambert Ave. and Harbor Blvd. by mid-2016 This is a great opportunity to bring a job-generating high-quality business campus to north Orange County, said Gary Edwards, principal of Western Realco. The city has been focused on creating local jobs and building its business base. We look forward to working with Fullerton to develop a plan that benefits the community and region. Building on its Fullerton acquisition, Western Realco also recently acquired 10 acres in Brea with plans to build approximately 216,000 square feet of commercial space. This acquisition follows other projects in Anaheim and Brea completed by Western Realco and sold to local and regional corporate businesses. These include several recent developments totaling almost 950,000 square feet of space. The institutional quality buildings now house a number of firms such as an industrial printing company, a technology firm, and an automobile products firm, among others. Alluding to the Fullerton acquisition, Edwards added that it s rare to have access to this amount of infill land to plan a quality business park, with greater opportunity to help keep jobs in Orange County. They are proposing to construct an industrial business park consisting of 8 buildings ranging in size from 41,435 square feet to 309,350 square feet, including the reuse of the existing 42,000 square foot former Beckman Administration Building. Established in 1972, Western Realco provides real estate development services throughout California and the West. Specializing in office and industrial projects, their services include land acquisition, finance, project conceptualization, construction management, marketing and property management. Western Realco has developed in excess of 17 million square feet and more than 1,350 acres throughout California and Nevada. SPRING

10 SEVEN QUESTIONS YOU SHOULD BE ASKING Make sure you choose the correct company to handle your specific needs 1. EXPERIENCE SEEMINGLY, THE MOST OBVIOUS QUESTION YOU WILL ASK YOUR REAL ESTATE AGENT, BUT BE SURE TO UNDERSTAND YOUR AGENT S EXPERIENCE WITH SIMILAR BUILDINGS AND PROJECTS. 2. SPECIALIZATION IT IS CRUCIAL TO CHOOSE A COMPANY THAT UNDERSTANDS THE COMPLEXITIES OF THE INDUSTRIAL REAL ESTATE MARKET. GM PROPERTIES HAS A DEEP GRASP OF COMMERCIAL REAL ESTATE FROM DEVELOPMENT TO LEASING TO DISPOSITION. 3. CAPACITY GM PROPERTIES TRULY BELIEVES THAT 1+1=3, MEANING THAT WE EMPLOY A TEAM APPROACH TO BROKERAGE. WHETHER IT IS TO SHOW YOUR PROPERTY TO A PROSPECT OR COMMUNICATE WITH YOU, THE CLIENT, SOMEONE WILL ALWAYS BE AVAILABLE. 4. OUTSIDE BROKER COOPERATION TOO MANY BROKERS TRY TO MONOPOLIZE THE PROPERTY IN ORDER TO GET BOTH SIDES OF THE COMMISSION. GM PROPERTIES BELIEVES THAT IN ORDER TO GET YOU TOP DOLLAR, THE PROPERTY MUST BE OFFERED TO PROCURING BROKERS AND PROSPECTS ALIKE. 5. MARKETING STRATEGY WE ENGAGE EVERY POSSIBLE COURSE TO ENSURE THAT YOUR PROPERTY IS IN THE HANDS OF EVERY POTENTIAL PROSPECT. IN ADDITION TO THE TRADITIONAL WEBSITE MARKETING SUCH AS AIR/EXCELIGENT, LOOPNET, AND COSTAR GM PROPERTIES APPLIES A PROACTIVE APPROACH BY WALKING DOOR TO DOOR IN THE SURROUNDING AREA TO PERSONALLY HAND OUT BROCHURES, SENDING BLASTS, TARGETED DIRECT MAILING CAMPAIGNS, COLD CALLING AS WELL AS ANY OTHER PROPERTY SPECIFIC MARKETING TECHNIQUES. 6. ASSOCIATIONS GM PROPERTIES MAINTAINS ACTIVE MEMBERSHIPS IN SEVERAL PROFESSIONAL ASSOCIATIONS INCLUDING: AIR, SIOR, CCIM, IREM, CA ASSOCIATION OF REALTORS, NAR, RIAOC, AND ICSC. 7. UNIQUE WITH A FOUNDATION OF INDUSTRIAL PROPERTY DEVELOPMENT AT THE HEART OF GM PROPERTIES, WE ARE UNIQUELY POSITIONED TO ASSIST WITH ALL YOUR COMMERCIAL REAL ESTATE NEEDS. 10 COMMERCIAL BEAT

11 NO ENERGY DISCLOSURE LAW IN BUT NEW LEGISLATION ON HORIZON Energy Disclosure use of commercial real estate has been with us off and on for some time now, and GM Properties has made a point of updating our clients on the latest developments. BOTTOM LINE: There is no statewide energy disclosure requirement in But, don t breath too easy. Until recently, Assembly Bill 1103 had been the order of the day. But, that bill ended in December, However, beginning January 2, 2017, AB 802 is scheduled to replace it as the new Energy Disclosure Law. According to Marika Erkely, Founder and Chief Executive Officer of GreenEconoME of Pacific Palisades, a full-service energy consulting firm, AB 802, a broader bill, is being formulated at this moment to replace AB Erkely says that in its current form, the bill will require that all buildings over 50,000 square feet must disclose their energy use annually. Erkely stated that, meanwhile, the City of Los Angeles is already implementing it s own energy disclosure laws. A frequent speaker at seminars presented by the AIR Commercial Real Estate Association dealing specifically with the issue of energy efficiency and disclosure, Erkely sees energy efficiency as a central issue going forward. Energy efficiency is going to affect market values of properties because the State of California is initiating Energy Disclosure laws. Right now we don t have a law but AB 802 is on the horizon. It behooves brokers and their clients to get up to speed on the subject, said Erkely. AB 1103 was repealed effective December 2015, meaning the statute and regulations are no longer in effect after such date. AB 802 was enacted in response to data gathering issues experienced by building owners and operators and related issues. The stated intent of the Legislature in enacting AB 802 is that the California Energy Commission create a benchmarking and disclosure program which will allow owners and operators of commercial and multifamily buildings containing 50,000 square feet and more to better understand their energy consumption through standardized energy use metrics. Under the new program, a utility must maintain energy usage data for all buildings served by that utility for at least the most recent 12 complete calendar months. Significantly, AB 802 eliminates the private disclosure made between parties to a transaction under AB 1103, and instead will require the public disclosure of certain operating performance data. AB 802 also applies to multifamily buildings, whereas AB 1103 does not. During 2016, the California Energy Commission will engage in a public process to develop regulations and establish a new reporting infrastructure for the new program under AB 802, according to Emily L. Murray, partner in the leading law firm of Allen Matkins. SPRING

12 13305 Penn Street Suite 200 Whittier, CA Cal BRE # Jason Jamison, SIOR Marcy Monaco, CPM Harry Lu Ben Greer, CCIM Dustin Wheelan Matt Wagner Brent Haskell Tyler Portman Cherry Lu Justin Wells Penn St. Suite 200 Whittier, CA There are plenty of reasons why property owners can trust GM Properties with their most valued assets. Over the last 50 years, the Whittier-based business has become an industry leader in Southern California. GM Properties, which manages more than 3.75 million square feet of commercial real estate, was recently ranked No. 8 on the LA Business Journal s Top 20 list of Industrial Property Management Firms. The Journal also ranked GM Properties No. 24 on its Top 25 list of Office Property Management Firms. From lease administration to budget control to monthly reporting to building maintenance, GM Properties handles it all with the utmost care and expertise. It prides itself on providing unparalleled, on-the-spot customer service and every client is treated like family. Whether clients are looking for a small, boutique firm or a large, high-powered one, GM Properties talented and experienced staff members can accommodate them. The company services the entire Southern California region, including Los Angeles, Orange, Riverside, San Bernardino and San Diego counties. COMMERCIAL BEAT