Ye ar 1 Pr Le In ve Pl ice :$ a ra ge ce 1 Ca 1,5 d 00 Ca p,0 sh Ra 0 te -o :8 0 n.0 Ca sh 2% Re tu rn :8.6 6% CAPITAL MARKETS ISTITUTIOAL GROUP IVESTMET PROPERTIES CLASS A OFFICE BUILDIG TOTALIG 61,124 SF STRATEGICALLY LOCATED I THE HIGHLY DESIRABLE ILAD EMPIRE MARKET Moreno Corporate Center 22690 Cactus Avenue Moreno Valley, CA
EXECUTIVE SUMMARY CBRE is pleased to present an excellent opportunity to acquire the Moreno Corporate Center, a Class A office building totaling 61,124 square feet in the desirable Inland Empire market. This is a unique opportunity to acquire quality real estate that is significantly below replacement cost in a premier Canyon Springs/Moreno Valley location with excellent freeway access. Moreno Corporate Center is strategically positioned at the intersection of ewhope Street and Cactus Avenue, directly across from the main entrance to March Reserve Air Force Base. The property has excellent freeway access, as it is situated just two blocks east of Interstate 215 and can be accessed via Cactus Avenue. The local freeway system provides tenants of Moreno Corporate Center with excellent regional access to other communities within Riverside, San Bernardino, Los Angeles, Orange and San Diego counties. Financial Summary The property offers an assumable loan of $6,715,602 at 5.8% due May 2017. Purchase Price $11,500,000 In Place Cap Rate 8.02% Equity Required $4,851,554 Year 2 Cap Rate 8.70% Year 1 Leveraged Cash-on-Cash Return 8.66% Office Summary Property Address 22690 Cactus Avenue Moreno Valley, CA Bldg Size (SF)/Stories 61,124/3 Acres 4.10 Year Built 1989 # of Tenants/Units 3/3 Lease Expirations 2017 2026 Occupancy 100% Over the last decade, the Inland Empire economy has ranked as one of the leading economies in the nation for population growth, job creation, construction and residential real estate. 2 / EXECUTIVE SUMMARY
Class A Project with Abundant Parking Constructed in 1989, 22690 Cactus Avenue is a Class A office building offering high corporate identity with prime frontage on Cactus Avenue. The three-story, state-of-the-art building is 100% leased to three quality tenants and features two elevators, sprinklers and a 5.3:1,000 parking ratio. Stable Cash Flow Moreno Corporate Center is 100% leased to three government tenants with staggered lease expirations which provides steady cash flow. Premier Canyon Springs/Moreno Valley Location The property offers excellent access to I-215 via the Cactus Avenue on/off ramps and is located in close proximity to numerous amenities, including the Canyon Springs Plaza, the Moreno Valley Mall and the Towngate Crossing. Priced Significantly Below Replacement Cost With the continual increase in construction prices and land values in the surrounding area, Moreno Corporate Center can be purchased at a substantial discount to replacement cost, providing investors with an attractive basis. Severely Supply-Constrained Market Will Lead to Strong Rent Growth and High Tenant Retention Supply Constrained Office Market The Moreno Valley office market has a 2.7% vacancy as of the 4th quarter of 2014, which is significantly lower than any other office market in the Inland Empire. When combined with the adjacent Canyon Springs submarket, the vacancy is still only 6.6%. For tenants that want to stay in the area, this will result in fewer options and higher rental rates. Anticipated Recovery for Inland Empire Office Market Both market and economic conditions are projected to progressively improve throughout 2015. Job growth is expected to continuously improve and aid in the health of the office market. Over the last five years, office employment has declined by 2.0%. Over the last 12 months office employment sectors involved in accounting, architecture/engineering, and political organizations experienced significant gains. CBRE EA forecasts that office employment will grow by 2% in the next five years. Strong Market Rent Growth Forecast Strong Market Rent Growth -The Moreno Valley Office market rents are forecasted to grow by 3.0% in 2016, 3.9% in 2017, 3.8% in 2018 and 3.2% in 2019. Professionally Managed and Maintained The property has been built, managed and maintained to meet high institutional standards. Assumable Debt The property offers assumable debt of approximately $6,715,602 at a rate of 5.8% maturing in May 2017. 3 / EXECUTIVE SUMMARY
SITE PLA - 22690 CACTUS AVEUE, MOREO VALLEY, CA 8 91 405 163 101 GOLDECREST DR OFFICE 22690 CACTUS AVE VETERAS WAY CACTUS AVE 4 / PROPERTY DESCRIPTIO
LOCAL MAP - MOREO CORPORATE CETER Moreno Corporate Center - Office 1 Building - 61,124 SF 5 / MARKET OVERVIEW
REGIOAL MAP - MOREO CORPORATE CETER Moreno Corporate Center 6 / MARKET OVERVIEW
Investment Contacts Michael Kendall Lic. 01895979 +1 909 418 2034 michael.kendall@cbre.com Darla Longo Lic. 00639911 +1 909 418 2105 darla.longo@cbre.com Office Market Expert Philip Woodford Lic. 00908054 +1 909 418 2132 philip.woodford@cbre.com Debt & Structured Finance Val Achtemeier Lic. 01868169 +1 213 613 3109 val.achtemeier@cbre.com Mark Perry Lic. 00783875 +1 818 907 4643 mark.perry@cbre.com Carlene O eil Lic. 01099744 +1 818 907 4725 carlene.oneil@cbre.com Moreno Corporate Center 22690 Cactus Avenue Moreno Valley, CA