For Sale New GSA Social Security Administration 11,938 SF Garden Grove Branch Office 11900 Gilbert Street Garden Grove, CA Offered By: Mike Howard & Joel Hewson February 2008 175 East 400 South, Suite 700 Salt Lake City, Utah 84111 801-322-2000 commercecrg.com
Heart of Orange County 2007, Commerce CRG. This statement, with the information it contains, is given with the understanding that all negotiations relating to the purchase, renting, or leasing of the property described above shall be conducted through this office. No warranty or representation, express or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. Some aerial photography by DigitalGlobe or Aerials Express.
Investment Highlights Long Term, U.S. Government backed Lease The credit of the U.S. Government is second to none. The Tenant, General Services Administration, is using this location as a branch office for the Social Security Administration. With a new, 15-year lease with no out clauses for the entire term, with SSA s reputation for staying in buildings well beyond the initial lease term, this unique investment opportunity provides a very stable cash flow with minimal management responsibilities. New, High-Quality Construction The subject property is a build-to-suit for the General Services Administration. As a result, the building adheres to the Government s strict construction guidelines built with high quality materials and above standard tenant improvements. In addition to the 15-year lease, the quality and age of the building will make it a great long-term investment. Commerce CRG, a Cushman-Wakefield Alliance member, is pleased to present for sale a 11,938 square foot, build-to-suit office building, 100% leased to the General Services Administration, a department of the Federal Government, responsible for the real estate needs of our federal agencies. 11900 Gilbert Street is the relocation of the Garden Grove Branch office of the Social Security Administration. The offering provides investors with a unique opportunity to own a brand new, high quality office building, with a stable, 15-year, U.S. Government backed lease located in the heart of highly desirable Orange County. Financial Highlights Offering Price:...$8,500,000.00 Annual Net Operating Income:...$467,169.00 Cap Rate:...5.5% Garden Grove - Orange County Garden Grove is situated in the heart of Orange County and benefits from the general dynamic economic engines of the market as well as the presence of such attractions as Disneyland, Knott s Berry Farm, Anaheim Convention Center, the Anaheim Stadium complex, and of course its proximity to the well-known beach communities of Newport Beach, Huntington Beach, and Balboa Bay. Outstanding Location The property is immediately adjacent to the 360,000 SF Garden Grove Promenade Shopping Center, which provides close amenities in support of the branch office as well as insuring a long-term value as a strong traffic generator to the area. Current plans before the Garden Grove City, call for a new Target Store within 500 feet of the property. The property is strategically located just off of the intersection of Chapman Street and Gilbert Street possessing over 750,000 people within a five-mail radius with an average household income in excess of $70,000.00.
Lease Summary Leasee: General Services Administration Lease Type: Modified Gross Start Date: July 2007 Lease Term: 15 years Annual Base Rent: $604,779.08 Rent Increases: Annual CPI on Expense Recovery and Actual Real Estate Tax Increases. Note: This lease is essentially a modified gross lease. An expense reimbursement factor of $6.94 PSF/year (which grows annually with a CPI adjustment) is included in the Base Rent. A factor of $4.03 PSF/year is included in the Base Rent for real estate taxes. The tenant pays for all real estate taxes above the Base Year factor. Property Information Address: 11900 Gilbert Street Garden Grove, CA 92841 Building Size: 11,938 Square Feet Parcel Size: 44,379 SF Stories: One Parking Spaces: 52 Property Features Over Standard Tenant Improvements including higher ceilings, high lighting levels, abundant power, heavy HVAC, energy efficient bronze glass, upgraded restrooms, flooring, and carpeting, and numerous security system features. The building is constructed with two distinct entrances affording easy division for a residual use and occupancy. Financial Proforma Schedule Rent Base Rent Expense Factor RE Tax Factor $473,819 82,850 48,110 Total Income 604,779 Less Expenses and Reserves (137,610) Net Operating Income $467,169
About GSA GSA secures the buildings, products, services, technology, and other workplace essentials federal agencies need. 13,000 GSA associates support over one million federal workers located in 8,000 government-owned and leased buildings in 2,000 U.S. communities and overseas. GSA associates: - Provide superior workplaces for federal workers - Facilitate procurement of state-of-the-art commercial products About The Social Security Administration Orange County Orange County, in the center of Southern California has experienced almost unfathomable growth over the last five decades. Well into the 1960 s it was considered a rural agricultural cousin to the Los Angeles metro area. It has been said that Walt Disney, hiring one of the early socio-economic consultants in the early 1950 s asked where he should locate his family oriented theme park that had been a dream of his for years. The answer was surprising and prophetic, Orange County, and more specifically, Anaheim. The rest as they say Is History. Headquarted in Baltimore, Maryland, the Social Security Administration (SSA) has a staff of over 65,000 employees within an organizational structure of 13 offices. The field organization, which is decentralized to provide services at the local level, includes 10 regional offices, 6 processing centers, and approximately 1,300 field offices. 11900 Gilbert Street is a field office for the SSA.
Orange County s population was reported in the 2000 census to be just under 2.9 million, making it the fifth most populous county in the country. Fueled by both residential and commercial development that began in earnest in the early 1970 s the county s population is projected to be approaching 3.1 million as of the end of 2007. The county has become famous for its many attractions, among them its most famous, Disneyland, followed by Knott s Berry Farm, and of course its beautiful and expensive beach communities from Huntington Beach on the north to Corona Del Mar, Emerald Bay, Laguna Beach and San Clemente on the south, with perhaps its most famous beach community of Newport Beach in the center. Thirty-four incorporated cities are located in Orange County with an extraordinary number of seven ranking in the 200 largest in the nation. Orange County is also known as the Tech Coast with Irvine being the primary hub. With more room to grow, the expectation is for continued economic strength, with both residential and commercial growth well into the future. The City of Garden Grove finds itself almost in the geographic center of Orange County and surely in the center of the dynamic influence of Disneyland (2 miles), Anaheim Stadium (4 miles), Knott s Berry Farm (7 miles), John Wayne Airport (10 miles), the beach (9 miles) and Los Angeles (25 miles). Access to Garden Grove is excellent being served directly by five of the southland s major freeways; Interstate 5 Santa Ana Freeway, Interstate 405 San Diego Freeway, State Hwy 22 Garden Grove Freeway, State Hwy 57 Orange Freeway, and State Hwy 55 Costa Mesa Freeway. The property s immediate adjacency to one of Garden Grove s prominent retail centers, 360,000 SF Garden Grove Promenade, and its convenient access to the downtown and business district of both Garden Grove and Anaheim, insure appreciated value long into the future. Its many hotels and convention facilities provide numerous and wide ranging accommodations, whether the visitor is in the county on business or pleasure. These facilities also support the activities and events at Anaheim Stadium or The Pond, respectively the homes of the Angels (American League Western Division Champions) and the Ducks (current Stanley Cup Champions) as well as many ancillary events.
Main Entrance West Entrance Waiting Room West Parking Lot
Employee Break Room Typical Restroom Finishes Employee Training Area Looking East
Sales Comparables # Property Address City Price SF Price PSF Year Built Cap Rate Sale Date Product Type 1 655-691 S. Main St. Orange $12,166,667 19,300 $630 1998 5.7% 2/23/2005 Strip Center 2 33522 Niguel Road Dana Point $6,360,000 9,766 $651 1980 UNK 5/12/2005 Office 3 190 S State College Blvd Brea $6,200,000 10,611 $584 1994 5.5% 6/09/2005 Retail 4 916 South Beach Blvd Anaheim $5,500,000 8,876 $620 1971 Vacant 8/12/2005 Retail 5 2244 West Coast Hwy Newport Beach $6,650,000 16,000 $541 1981 5.2% 6/30/2006 Office 6 4750 Von Karman Avenue Newport Beach $4,200,000 7,150 $587 1978 6.1% 12/04/2007 Office 7 1726 Superior Avenue Costa Mesa $9,700,000 10,800 $898 1949 Vacant 8/28/2007 Retail AVERAGE $7,539,524 11,786 $644 5.6% For Investment Information, Please Contact: 175 East 400 South, Suite 700 Salt Lake City, UT 84111 Tel 801.322.2000 Fax 801-322-2040 Michael S. Howard 801.303.5448 mhoward@commercecrg.com Joel Hewson 801.303.5563 jhewson@commercecrg.com
Salt Lake City Office 175 East 400 South, Suite 700 Salt Lake City, Utah 84111 Tel (801) 322-2000 Fax (801) 322-2040 www.commercecrg.com