564 N TULIP STREET ESCONDIDO CALIFORNIA

Transcription

1 564 N TULIP STREET ESCONDIDO CALIFORNIA -SINGLE TENANT NET LEASED INDUSTRIAL- OFFERING MEMORANDUM RENE RAMOS JR. Senior Vice President rramos@cbcsocalgroup.com Direct: CalBRE License: CHRISTOPER YEAKEY Senior Sales Associate yeakey@cbcsocalgroup.com Direct: CalBRE License: Coldwell Banker Commercial SC 4660 La Jolla Village Drive, Suite 1070 San Diego, CA Cal BRE License: cbcsocalgroup.com

2 EXECUTIVE SUMMARY ASKING PRICE: $2,050,000 BUILDING SIZE: 9,720 SF CAP RATE: 4.84% NOI: $99,300 NNN RENT (11/1/16): $0.85/SF/MO RENT INCREASES: 3% annually LEASE TYPE: NNN EXPIRATION DATE: 10/31/26 TENANT INFORMATION SCP DISTRIBUTORS LLC is is the largest operating entity of POOLCORP. POOLCORP is the largest wholesale distributor of swimming pool and related backyard products. Founded in 1993, POOLCORP has grown to over 300 sales center locations in North America, Europe, South America and Australia. WEBSITE MARKET CAPITALIZATION $2.54 Billion OWNERSHIP EMPLOYEES NASDAQ: Pool 3,800 REVENUE HEADQUARTERS $2.08 Billion Covington, LA 564 N. TULIP STREET ESCONDIDO CALIFORNIA OFFERING MEMORANDUM

3 PROPERTY DETAILS ADDRESS: 564 N. Tulip Street, Escondido, CA APN: BUILDING SIZE: LAND: ±9,720 SF ±.7 Acres COVERAGE: 43% YEAR BUILT: 1982 OFFICE BUILDOUT: ±3% PARKING: CONSTRUCTION: HVAC: 26 Parking Spaces Concrete tilt-up Package unit on roof ZONING: M-2 CLEAR HEIGHT: 18 LOADING: POWER: YARD: 2 grade doors 400 amps Yes 564 N. TULIP STREET ESCONDIDO CALIFORNIA OFFERING MEMORANDUM

4 PROPERTY HIGHLIGHTS SINGLE TENANT-LONG TERM STABLE CASH-FLOW WITH EXCELLENT CREDIT New 10 year renewal just signed by Pool Corporation Pool (NASDAQ: POOL) www. poolcorp.com. Pool has a current market cap of $2.54 Billion and total revenue for 2015 was over $2.08 Billion. Pool has been in this location for over 15 years and in this particular building since March With more than 3,800 employees and over 300 locations worldwide, Pool leads as the world s largest wholesale distributor of swimming pool supplies, equipment and related leisure products. Their inventory includes a diverse range of products, from construction materials, replacement parts and fencing to pool care products and spas, with roughly 100,000 wholesale customers around the world. Pool operates through three of its distribution networks, one of which is located at the subject building, SCP Distributors LLC. OUTSTANDING LOCATION IN NORTH COUNTY S PRIME INDUSTRIAL SUBMARKET The property is located within the 7 concrete tilt-up industrial building complex known as the Milestone Business Center. Due to its location and visibility from the 78 freeway and I-15 freeway the project is commanding premium rents compared to the competition in the area. In addition, numerous showroom/wholesale supply uses (Sherwin-Williams, SPC) have been pushing rents higher. Excellent freeway access and visibility from the freeway along with M-2 zoning allowing outside storage. The market is mostly comprised of construction related companies, construction services, and wholesale supply servicing the residential/commercial construction growth. Recently with the completion of the new Palomar Hospital, related services and other higher image companies have migrated to Escondido including the Stone Brewery HQ. 564 N. TULIP STREET ESCONDIDO CALIFORNIA OFFERING MEMORANDUM

5 INVESTMENT HIGHLIGHTS LEASE ENTITY: SCP Distributors, LLC ORIGINAL START DATE: 03/01/13 CURRENT AMENDMENT START DATE: 03/01/16* EXPIRATION DATE: 10/31/26 TERM (MONTHS): 128 BUILDING SIZE: 9,720 SF LEASE: NNN PRO-RATA: 100% *This lease has been abstracted per the draft Third Amendment dated 8/9/16 EXCELLENT MARKET FUNDAMENTALS As of Q3 2016, Escondido has a current industrial vacancy rate of 1.7% and a base of over 7M SF of industrial buildings with average asking lease rate of $0.86/psf NNN. Escondido has historically had the lowest vacancy for the North County industrial market due to the lack of available land and strong regional demand. Due to this low vacancy and strong tenant demand, rental rates continue to rise especially for properties with yard capacity and good freeway access such as the subject building was a record breaking year for North County San Diego with over 1,500,000 SF of positive net absorption and new low overall vacancy rate of 3.8%. North County s overall vacancy is lower than both Central and South San Diego. Additionally, there is currently over 3,000,000 SF of industrial tenant demand in North County San Diego. For the first time in San Diego s history, every region is at or below a 5.2% industrial vacancy rate. MONTHLY RENT SCHEDULE DATE MONTHLY PSF/MO 03/01/16-10/31/16 $8, $ /01/16-10/31/17 $8, $ /01/17-10/31/18 $8, $ /01/18-10/31/19 $8, $ /01/19-10/31/20 $9, $ /01/20-10/31/21 $9, $ /01/21-10/31/22 $9, $ /01/22-10/31/23 $9, $ /01/23-10/31/24 $10, $ /01/24-10/31/25 $10, $ /01/25-10/31/26 $10, $ N. TULIP STREET ESCONDIDO CALIFORNIA OFFERING MEMORANDUM

6 I MIN. TO TEMECULA 78 FREE WAY - 2 5M IN. TO I-5 E ENU V A N SIO W MIS ENUE V A N NGTO I WASH AUTO PAR Y KW W AY ESCONDIDO INDUSTRIAL MARKET PLAZA LAS PALMAS RETAIL CENTER ARK ITY P RE C DO PARKWAY CENT A CITRIAC ESCONDIDO INDUSTRIAL MARKET E AV LL AY W K PAR SAN DIEGO ESCONDIDO AUTO MALL WAY 564 N. TULIP STREET ESCONDIDO PROMENADE 564 N. TULIP STREET ESCONDIDO CALIFORNIA OFFERING MEMORANDUM

7 Oceanside Carlsbad DISCLAIMER STATEMENT San Marcos Escondido The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Coldwell Banker Commercial SC and should not be made available to any other person or entity without the written consent of CBC-SC. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. CBC-SC has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, CBC-SC has not verified, and will not verify, any of the information contained herein, nor has CBC conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Encinitas Solana Beach Del Mar La Jolla Rancho Santa Fe 564 N. TULIP STREET Mira Mesa Miramar Tierrasanta Poway Santee 2016 Coldwell Banker Commercial is a registered trademark licensed to Coldwell Banker Real Estate Corporation. An Equal Opportunity Company. Each Officeis Independently Owned and Operated Except Offices Owned and Operated by NRT Incorporated. Pacific Beach Mission Valley La Mesa El Cajon Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks licensed to Coldwell Banker Commercial Affiliates. Each Office is Independently Owned and Operated. All information contained herein has been obtained from sources deemed reliable. However, no warranty or guarantee is made as to the accuracy of the information. CalBRE License # San Diego International Airport Coronado San Diego National City Lemon Grove Bonita Spring Valley Chula Vista RENE RAMOS JR. Senior Vice President rramos@cbcsocalgroup.com Direct: CalBRE License: CHRISTOPER YEAKEY Senior Sales Associate yeakey@cbcsocalgroup.com Direct: CalBRE License: Coldwell Banker Commercial SC 4660 La Jolla Village Drive, Suite 1070 San Diego, CA Cal BRE License: cbcsocalgroup.com