3.319 Acres Multi-Family Site

Transcription

1 3.319 Acres Multi-Family Site 571 E. Foothill Blvd., $1,260,000 Exclusively Presented By: Ione Stein Ione Real Estate, Inc. 615 N. Hillcrest Rd. Beverly Hills, CA (310) (310) fax

2 Exhibit A Exhibit A1

3 Exhibit A2 Exhibit A3

4 Exhibit A4 Summary Location: 571 E. Foothill Blvd. (Between N. Acacia and Eucalyptus) Price: $1,260,000 Lot Size: acres (144,575 sq. ft.) # of Proposed Units: 99 Price Per Unit: $12, Price Per Acre: $379,634 Price Per Sq. Ft.: $8.71 Zoning: APN: C-MU-Commercial/Residential Mixed Use (see pg. 22 & 25 of Rialto s Foothill Blvd. Specific Plan at: / downloads/foothill_boulevard_specific_plan- Adopted_August_2010.pdf)

5 3.319 Acres 571 E. Foothill Blvd. The acre (144,575 sq. ft.) parcel at 571 E. Foothill Blvd., is located on a heavily trafficked thoroughfare, Foothill Blvd., (Route 66). The property is between N. Acacia and Eucalyptus inside the Acacia Plaza which was built in The shopping center is anchored by Stater Brothers supermarket, Burger King, Pep Boys and PayLess Shoes. The property is being offered at $1,260,000 ($8.71/sq. ft.) or $12,727/unit. The property is zoned C-MU-Commercial/Residential Mixed Use.* The allowable density, with a CUP application, is 30 units per acre, or 99 units, with no commercial requirement, per City Senior Planner. Seller will give developer time to get entitlements. (*see pg. 22 & 25 of Rialto s Foothill Blvd. Specific Plan at /downloads/ Foothill_Boulevard _ Specific_Plan-Adopted_August_2010.pdf) As seen on Exhibit C there are two high quality master planned communities proposed. Lewis Homes, the master planned community developer of Rancho Cucamonga, is under contract to acquire the 453 acre Rialto Airport. Closure of the airport is slated for 2014; the first development phase (commercial) will be followed by the phased development of 1,700 housing units. This Lewis Homes master-planned community is approximately 3 miles from the subject property. The second master-planned community of 2,400 acres is the Lytle Creek Ranch - located partially within the city limits of Rialto, and the balance within unincorporated San Bernardino County. As part of project entitlements, the portions of the site not currently within the city limits will be annexed into the city. With more than a decade spent in planning and design, Lytle Creek Ranch, is envisioned as a multi-generational community where residents can live, work, shop, and play within an intimate small town setting of rich architecture and attractive landscaping. Lytle Creek Ranch offers a range of amenities that will be accessible to all of the residents of Rialto. These public amenities include neighborhood parks, a sports park, two joint use park/school facilities with sports fields and/or playgrounds, a central Grand Paseo, a new active adult community and a public 18-hole golf course. The project will incorporate and further enhance efforts to redevelop the underperforming El Rancho Verde Royal Vista Golf Club that began in The project will set aside a total of 1,253 acres (51% of the total project area) as open space. When built-out in 2030 it will serve as a legacy project in Rialto. Other housing activity in the area is the proposed 90 unit Crossroads senior project that is now on hold. Frontier Communities, a well-respected builder of high quality homes in Southern California is offering 20 new homes, near Maple Ave & Summit Street, priced in the $300,000s. These three to six bedroom homes range from 2,168 to 2,497 square feet. It is our understanding these spec homes have been presold. The city has $6.5 million in Housing Bond Funds. Currently a report is being prepared to submit at the next City Council meeting to determine affordable housing funding. The city may consider proceeding with Crossroads, about 1.1 miles from the subject property. In our opinion the subject property s location attributes are stronger since schools are within a walking distance 1

6 3.319 Acres 571 E. Foothill Blvd. from the parcel (without having to cross a major thoroughfare) and major commercial is adjacent. CBRE Group reports Inland Empire regional warehouse construction rose 81% between 4Q11 and 4Q12 resulting in the most industrial square footage being built in any US metropolitan area. CBRE also reported that tenants are currently on the hunt for about 20 million square feet, which has resulted in a 60% pre-lease rate for speculative construction. Rialto offers convenient access to four major Interstates (210, 215, 15 & 10) and proximity to densely populated areas and major employers. As seen in Exhibit D, most of the industrial space planned and/or under construction in Rialto is within 3.5 miles of the subject property. Per National Real Estate Investors (June/July 2013) Prologis, Inc. is the biggest owner of industrial properties, while DCT Trust and Panattoni fall in at 4 th and 11 th respectively. As seen on Table 1, between 2011 and 2013 there were between 7,067,562 and 7,910,000 sq. ft. of warehouse/industrial planned or under construction in the city limits. In addition there is an 181,395 sq. ft. Wal-Mart Store being developed at the SWC of Riverside and San Bernardino avenues, Fed Ex plans to occupy a 320,000 sq. ft. industrial warehouse logistic building at Cactus and Jurupa. Target will occupy a 499,999 sq. ft. automated food distribution center south of Easton, east of Alder and west of Laurel. Other reliable sources report that the Inland Empire is the most dynamic industrial market in the entire country today. It is one of the first markets to come back from an industrial perspective and has bounced back more than any other market. The area is the closest large-scale industrial market to the ports of Los Angeles and Long Beach, the biggest seaport complex in the US. About 75% of all international goods coming into the ports pass through the Inland Empire by truck and rail. Haute Look, an online discount retailer, owned by Nordstrom, has reportedly signed a 10 year lease to double its presence in the Inland Empire with relocation to a new 604,000 sq. ft. fulfillment center facility in San Bernardino; occupancy is slated for September Amazon.com, Inc., the world s largest online retailer moved into a 950,000 sq. ft. warehouse, 7 miles from the subject property in October of As seen on Table 3 the three most recent 2013 land sales for commercially zoned property ranged between $28.70 and $82.90 per sq. ft. with the exception of a bank REO property. The subject property, which is larger, is being offered for $8.71 sq. ft. Table 3 provides land sale comps from 2010 to See Exhibit E for location of these properties. The subject property is perfect for senior housing and/or an assisted living project (next to Stater Brothers supermarket off of E. Foothill Blvd.) to serve the aging population in the Inland 2

7 3.319 Acres 571 E. Foothill Blvd. Empire. In addition, it is an ideal location for a family oriented multi-family project with schools within a ½ mile radius. According to a March, 2013 apartment survey of 20 complexes in the Rialto/Fontana submarket, the vacancy rate among the 4,407 units (Table 4) was 6%. The two conventional senior projects surveyed, containing 503 units, had no vacancy. Eighteen conventional projects contained almost exclusively one and two bedroom units; none of the projects had a substantial number of three and four bedroom units. Only 8.1% of the units surveyed contained three bedroom plans and there were no four bedroom units in the submarket. The average household size in the city of Rialto is 3.91 persons; the average household income is $67,036 (Table 5). The complexes surveyed were primarily built in the mid to late 1980 s and are now 22 to 29 years old. See Exhibit F for the location of the complexes surveyed. Table 6 provides a list of all the existing senior apartment complexes in the city. The Heritage Park, market rate senior project, built in 1985 by Calmark has experienced between % annual increases in the one bedroom units and between % annual rental increases in the two bedroom units during the 18 year period from 1995 to 2013 per out database. See Exhibit G for location of these senior projects. As of July 1, 2013 there are no multi-family projects under construction or in the planning stages within the city. For those LIHTC prospects, we can assist with identification of point generating off site amenities. Per Lieutenant Andy Karol of the Rialto Police (909) Rialto does have a few problems with multi-family in the area but it is improving. Building owners meet with Code Enforcement to discuss the Crime Free Multi-Family Housing program. The program offers specific Addendums to a lease which includes eviction due to police response to a tenants unit, drug use, etc. There is a government agency that inspects the buildings to make sure the buildings are in compliance with the program, i.e., property lighting, etc. The buildings are given a Gold Star to be used in advertising which illustrates to prospective tenants the building is in compliance with the program. There is also a community Liaison, Corporal Nelson (909) , so the building owner and management can discuss any questions and/or concerns that may arise. For questions regarding easements and/or CC&Rs please contact listing broker. 3

8 Exhibit B Site Location E. Foothill Blvd. Burger King Payless Shoes N. Acacia Pep Boys Stater Bros. Exhibit B1 Plat Map Site N. Eucalyptus Exhibit B1 Plat Map

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11 Table 1 Rialto Planned Retail-Warehouse-Industrial Proposed Square Footage Warehouse/ Precise Plan of Map Project Location Retail Industrial Design # (PPD) 1. Walmart/Newmark Merrill SWC San Bernardino Ave. & Riverside Ave. 181, & 2102R 2. DCT Industrial Operating SEC Renaissance Pkwy & Laurel Ave. 940, Prologis E. of Palmetto Ave. N. of Baseline 677, Panattoni Development NEC Baseline Rd. & Locust Ave. 717, & 2233R 5. Fed Ex/Scannel E/S Cactus S. of Jurupa 320, Oakmont El Rivino NWC Cactus Ave. & El Rivino Rd. 2,433, Panattoni Development NWC Baseline Rd. & Linden Ave. 369, , 2081R, 2081R2 8. Jurupa Alere, LLC SEC Riverside Ave. & Bloomington Ave. 300, & 2082R 9. Hogel-Ireland/Pam Steel Dev. NWC Merrill Ave. & Lilac Ave. 258, Target/Ryan Companies S. of Easton, E. of Laurel 499, Panattoni Development NWC Baseline Rd. & Locust Ave. 370, , 2080R & 2080R2 Total: 181,395 6,886,167 Grand Total: 7,067,562 Table 2 Rialto Existing Major Employers Map Company Name Location Business Type Employees 12. Rialto School District 182 E. Walnut Ave. Education 2, Target - Rialto Regional Distribution Ctr N. Mango Distribution-Consumer Goods Staples Distribution Center 450 S. Cactus Ave. Distribution-Office Supplies Wal-Mart 1610 S. Riverside Ave Retail-General Merchandise Toys R Us 110 W. Merrill Ave. Distribution-Toys Eagle Roofing Products 3546 N. Riverside Ave. Manufacturing-Roofing Biscomerica Corp. 565 W. Slover Ave. Manufacturing-Food 300 represents subject propery on map Source: Daniel Casey City of Rialto Assistant Planner The above information is for the exclusive use of Ione Real Estate, Inc., any reproduction of this information without the express written permission of Ione Real Estate, Inc. is prohibited. The information above was obtained from sources deemed reliable by Ione Real Estate, Inc. but which we cannot guarantee. Before entering into any real estate transaction, verify all information and consult a legal professional.

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13 Table 3 Rialto Land Sales Comps 2010 to 2013 Map Sale Lot Size Sales Price/ Price/ Propsed Usage/ # Property Address APN Date Acres Sq. Ft. Price Acre Sq. Ft. Financing Buyer S Subject Property ,575 $1,260,000 $379,634 $8.71 Zoned C-MU/CUP 571 E. Foothill Blvd application required W. Margarita St /14/ ,920 $325,000 $3,489,524 $82.90 Commercial/Other (land) Willmont, LLC Foothill Blvd., Ste. 100 Rancho Cucamonga, CA S. Primrose Ave /30/ ,712 $259,000 $1,293,960 $29.73 Commercial/Other (land) Brenda Segura 1767 N. Primrose Ave N. Magnolia Ave /22/ ,970 $200,000 $1,244,571 $28.70 Commercial/Other (land) Oscar Vasquez 240 N. Magnolia Ave S. Euclayptus Ave /19/ ,505 $575,000 $125,416 $2.88 Commercial/Other (land) Pacific Horizon Builders, Inc. Bank REO/Cash Sale 420 N. Mckinley St. Corona, CA 5. Cedar Ave & Merrill Ave. 11/14/ ,000 $280,000 $406,560 $9.33 Retail (land) Francisco C. Guillen Cash Sale Yesenia Godoy Madriz W. Summit Ave /9/ ,712 $170,000 $832,044 $19.51 Commercial/Other (land) San Gabriel Valley Water Co. Cash Sale Garvey Ave. El Monte, CA E. Valencia St /30/ ,326 $281,000 $832,045 $24.81 Commercial/Other (land) Rafael Perez Cash Sale 892 E. Valencia St W. Randall Ave /17/ ,394 $24,000 $1,099,664 $0.98 Commercial/Other (land) Jesse Berumen Cash Sale 909 S. Willow Ave Kaiser Ave /15/ ,494 $2,500,000 $6.21 consisted of San Gabriel Valley Water Co. Fontana Gross Gross 2 Parcels Garvey Ave. Cross Streets: Cash Sale El Monte, CA Base Line & Palmetto 10. W. Margarita St /13/ ,495 Single Family Renaissance Dev., LLC Cross Streets: Gross Development 8380 Maple Base Line & Cactus Rancho Cucamonga, CA W. McWethy St /26/ ,250 $990,000 $16.16 Partial List Nijar Realty, Inc. Cross Streets: gross Gross 4900 Santa Anita Ave. Foothill & Maple El Monte, CA 91731

14 Table 3 Rialto Land Sales Comps 2010 to 2013 Map Sale Lot Size Sales Price/ Price/ Propsed Usage/ # Property Address APN Date Acres Sq. Ft. Price Acre Sq. Ft. Financing Buyer Bloomington Ave /23/ ,350 $1,200,000 $7.35 Affordable Senior Telacu Housing, Inc. Cross Streets: Gross Gross 1st HUD-Housing/Urban Dev E. Olympic Blvd. Bloomington & Cactus $11,850,400. 2nd Rialto Los Angeles, CA Housing Authority $3,805, S. Spruce Ave /23/ ,662 $3,700,000 $6.09 Multiple-2 properties partial American Handforge Cross Streets: list. 1st US BK National Assoc 165 S. Spruce Ave. $2,879,400 (77.8%) Rialto & Cactus Down payment 22.2% 14. Ayala St /22/ ,064 Redevelopment Agency Cross Streets: Gross of City of Rialto Base Line Ayala 131 S. Riverside Ave. 15. W. Foothill Blvd /22/ ,460 $1,500,000 $9.84 Commercial-R3 Telacu Housing, Inc. Cross Streets: Gross Gross Affordable Senior 5400 E. Olympic Blvd. Foothill & Cactus 1st HUD (const) $1,824,155 Los Angeles, CA Note: 1 & 10 are the same property The above information is for the exclusive use of Ione Real Estate, Inc., any reproduction of this information without the express written permission of Ione Real Estate, Inc. is prohibited. The information above was obtained from sources deemed reliable by Ione Real Estate, Inc. but which we cannot guarantee. Before entering into any real estate transaction, verify all information and consult a legal professional.

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21 Table 6 Rialto Senior Apartments Map Property Type Age Units 1 Julia Palms Apartments 245 E. First St. (909) South Point Villa 302 W. Merrill Ave (909) Affordable Tax Credit Affordable HUD 221(d)(4) Telau #1 La Paz 200 W. Merrill Avenue (909) Telau #2 Tierra Serrano 773 W. Foothill Blvd. (909) Telacu #3 Rio Alto 545 Bloomington Ave. (909) Affordable HUD Affordable HUD Affordable HUD Heritage Park 303 W. Merrill Avenue (909) Market Rate 55 plus Total: 753 The above information is for the exclusive use of Ione Real Estate, Inc., any reproduction of this information without the express written permission of Ione Real Estate, Inc. is prohibited. The information above was obtained from sources deemed reliable by Ione Real Estate, Inc. but which we cannot guarantee. Before entering into any real estate transaction, verify all information and consult a legal professional.