Offering memorandum El Cajon 1083 N o r t h C u y a m a c a s t r e e t
1083 north Cuyamaca street el Cajon, CA 92020 Offering Memorandum I. Executive summary The Overview & Valuation Summary...1 II. The property Property Description...3 Parcel Map...4 III. Market overview Industrial Economic Overview...6 Aerial Photograph...7 IV. Financial Analysis Schedule of Cash Flow...9 Tenant Profile...10 Brian Mulvaney, SIOR, CCIM Senior Vice President bre lic 00938944 858.458.3372 bmulvaney@voitco.com Josh West Vice President bre lic 01923375 858.458.3358 jwest@voitco.com 4747 Executive Drive, Suite 800, San Diego, CA 92121 858.453.0505 858.408.3976 Fax Lic #01333376 www.voitco.com Licensed as Real Estate Salespersons by the CA Bur of Real Estate. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. 2016 Voit Real Estate Services, Inc. All Rights Reserved. Real People. Real Solutions. is a registered trademark of Voit Real Estate Services.
Executive summary
EXECUTIVE SUMMARY The Overview Voit Real Estate Services, as exclusive advisor, is pleased to present for sale, 1083 North Cuyamaca Street, an approximately 9,600 square foot freestanding industrial building located in the El Cajon submarket within San Diego County. The property is currently 100% leased and boasts an excellent curb appeal. This quality property offers an investor the unique opportunity to acquire a well-located, Southern California industrial asset, with a stable income stream. Valuation Summary Price $1,500,000.00 Building Square Feet ±9,600 SF NOI (September 1, 2017 - August 31, 2018) $82,500.00* *NOI is estimated based on actual Gross Rents in the Lease Document, less estimated Operating Expenses. Buyer should verify their own numbers. 4
The property
THE PROPERTY Property Description GRADE LEVEL DOOR Address 1083 North Cuyamaca Street, El Cajon, CA 92020 Property Type Industrial WAREHOUSE Land Area / APN ±0.58 Acres / APN # 482-310-25 UP Building RSF Approximately 9,600 square feet BREAK ROOM Year Built 1981 BREAK ROOM CONFERENCE ROOM CLOSET Floors One (1) Zoning C-M (heavy commercial - light industrial) Construction Concrete Block HVAC Roof-mounted units MEZZANINE Access One (1) curb cut along North Cuyamaca Street Utilities Water / Sewer - City of El Cajon Electricity / Gas - SDG&E DOWN 6
THE PROPERTY Parcel Information 7
Market overview
MARKET OVERVIEW El Cajon industrial market Overall El Cajon is one of the region s premiere locations in which to live, work and play. As the fifth largest city in San Diego County, El Cajon boasts a diverse and vibrant community. With safe and attractive residential neighborhoods, parks, libraries and other amenities, award-winning schools, and a quality of life that is highly sought, El Cajon is a shining example of exceptional municipal service. El Cajon is a full service City, with first-class police and fire departments. This vibrancy is evident in the dynamic business environment. El Cajon is home to both global and nationally known corporations such as Taylor Guitars, one of the premier guitar manufacturing companies in the world. The City is also home to a long-time retail mall, Parkway Plaza, that boasts over 170 stores El Cajon is also known for the many car dealerships in town, with 14 currently within its boarders, including Mercedes-Benz, BMW, and Lexus. Additionally, El Cajon has a wonderful downtown, with shops and restaurants that the entire family can enjoy. El Cajon s location and attributes make it attractive and accessible to small investors and entrepreneurs, which enhances the City s many business districts. Lease Rates The average asking NNN lease rate per month per square foot in El Cajon was $0.77 at the end of 2nd quarter 2017. Vacancy rates have steadily moved downward and asking rental rate will continue to rise. Absorption The El Cajon industrial market posted 8,431 square feet of net absorption in the second quarter of 2017. Vacancy Direct / sublease space (unoccupied) finished second quarter 2017 at 0.80 percent. 9
MARKET OVERVIEW Aerial photograph SITE Bradley Avenue Fletcher Parkway Broadway Navajo road Main street 10
Financial analysis
FINANCIAL ANALYSIS Financial Summary Gross Income (September 1, 2017 - August 31, 2018) $103,236.00 Current Estimated Operating Expenses $0.18 PSF / Monthly NOI (September 1, 2017 - August 31, 2018) $82,500.00* Building Square Feet ±9,600 SF Lease Term 4+ Years Remaining (Expires: 8/31/2021) Rent Schedule 1 September 1, 2016 - August 31, 2017 $8,352 gross per month 2 September 1, 2017 - August 31, 2018 $8,603 gross per month 3 September 1, 2018 - August 31, 2019 $8,861 gross per month 4 September 1, 2019 - August 31, 2020 $9,126 gross per month 5 September 1, 2020 - August 31, 2021 $9,400 gross per month *NOI is estimated based on actual Gross Rents in the Lease Document, less estimated Operating Expenses. Buyer should verify their own numbers. 12
TENANT INFORMATION J.P. Witherow Roofing Rentable Square Feet 9,600 SF Tenant Since 2016 % of Project RSF 100% Website www.jpwitherow.com J.P. Witherow Roofing is a professional roofing company that has been operating in San Diego since 1935. The company was established by J.P. Witherow who brought the company to the area to take advantage of the city s growing opportunities. J.P. operated the company until he passed away in 1986. His son, Richard took the helm and led further expansion of the company until a couple of years ago. It has continued to flourish in the expanding San Diego community for more than 80 years. J.P. Witherow Roofing has now completed over 55,000 roofing projects throughout San Diego. Thanks to their stellar reputation and highly skilled and experienced professionals, the company continues their success with hard work, dedication, integrity, dependability, commitment to quality, and excellence in customer service. 13
Disclaimer & confidentiality agreement This is a confidential Offering Memorandum that is intended solely for your limited use and benefit in determining whether you desire to express any further interest in the refinance of 1083 North Cuyamaca Street San Diego, CA 92020 (the Property ). You are obligated and bound by the Confidentiality Agreement executed in connection with your receipt of this Memorandum. The Offering Memorandum was prepared by Voit Real Estate Services ( Voit ). It contains selected information pertaining to the Property and does not claim to be all-inclusive or to contain all of the information, which prospective lenders may desire. It should be noted that all market analysis projections are provided for general reference purposes and are based upon assumptions relating to the general economy, competition and other factors beyond our control and therefore are subject to material variation. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective lenders. No representation or warranty, expressed or implied, is made by the property owner, Voit, or any of their respective affiliates as to the accuracy or completeness of the information contained herein, as to engineering or environmental matters or as to the future performance of the Property. Prospective lenders should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence, including engineering and environmental inspections to determine the condition of the Property and the existence of the potentially hazardous material located at the Property site or used in the construction or maintenance of the Property. In this Memorandum, certain documents are described in summary form. The summaries do not purport to be complete. They are not, necessarily, accurate descriptions of the full agreement involved. Nor do they purport to constitute a legal analysis of the provisions of the documents. Interested parties are expected to independently review all such documents. This Office Memorandum shall not be deemed an indication of the property owner s state of affairs nor constitute an indication that there has been no change in the business or affairs of the property owner since the date of preparation of the Memorandum. Photocopying or other duplication of the Offering Memorandum, in part or in its entirety, whether received as an original copy or downloaded from the internet, is not authorized. 14
1083 north Cuyamaca street el Cajon, CA 92020 Offering Memorandum www.voitco.com Anaheim, CA 714.978.7880 Carlsbad, CA 760.517.4000 Inland Empire, CA 909.545.8000 Irvine, CA 949.851.5100 Brian Mulvaney, SIOR, CCIM Senior Vice President bre lic 00938944 858.458.3372 bmulvaney@voitco.com Josh West Vice President bre lic 01923375 858.458.3358 jwest@voitco.com 4747 Executive Drive, Suite 800, San Diego, CA 92121 858.453.0505 858.408.3976 Fax Lic #01991785 www.voitco.com Licensed as Real Estate Salespersons by the CA Bur of Real Estate. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. 2017 Voit Real Estate Services, Inc. All Rights Reserved. Real People. Real Solutions. is a registered trademark of Voit Real Estate Services. Los Angeles (Gardina), CA 424.329.7500 San Diego, CA 858.453.0505