Shop. Drink. Dine. Hang. Be HERE. MARKETPLACE & FOOD HALL IRVINE, CALIFORNIA Holliday GP Corp. ( HFF ), California Bureau of Real Estate License #01385740
MARKETPLACE & FOOD HALL THE OPPORTUNITY As exclusive advisor, HFF is pleased to offer the rare opportunity to acquire TRADE Marketplace & Food Hall, a recently redeveloped retail center and curated market food hall experience in the heart of the Irvine Business Complex. Fueled by a daytime population of more than 250,000 people within a five minute drive and 56 Class A office buildings within a one-mile radius, this dynamic new project has emerged as one of the most exciting shopping and dining destinations in the Airport Area. Currently 94.4% leased (100% in the food hall component), TRADE offers an attractive mix of food & beverage, curated health & beauty services, and daily needs tenants, providing an experiential focused shopping center in a core Orange County location that rarely sees properties of this caliber change hands. 2 TRADE Marketplace & Food Hall
PROPERTY SUMMARY ADDRESS: PROPERTY SIZE: 2222-2272 Michelson Drive Irvine, CA 92612 32,560 SF OCCUPANCY: 94.4% # OF TENANTS: 29 SITE SIZE: PARKING: 3.03 acres (131,987 SF) 176 parking spaces (5.4 per 1,000 SF) YEAR BUILT: 1989 / Renovated 2017 TRAFFIC COUNT: FRONTAGE: 331 50,000 VPD A SELECTION OF OUR TENANTS HIRONORI CRAFT RAMEN (339 reviews) Once you taste their ramen, you ll understand why they consider it a craft! KRISP FRESH LIVING (99 reviews) My favorite and GO TO Acai Bowl destination. Delicious coffee drinks. SEV LASER & AESTHETICS (31 reviews) My first impression of this place was, WOW! SEV IS THE BEST! KEMPT (33 reviews) A perfect 10/10 Gets my haircut perfect every time TWO BIRDS (260 reviews) A MUST HAVE!!! Probably one of the best fried chicken sandwiches I ve ever had. OC WAXING (66 reviews) I love this place! I d highly recommend this place Source: Yelp Reviews 3
INVESTMENT THESIS TRADE Marketplace & Food Hall is a unique, food-anchored generational investment opportunity with stable cash flow and long-term value appreciation in an infill Orange County location. With a significant renovation recently completed, the Property provides an investment comparable to new construction with internet resistant retail tenants.
RECENTLY RENOVATED ASSET The $6.7 million dollar renovation of the Property, which includes an extensive physical renovation, roof replacement, new landscaping and hardscaping, and upgrades to base building systems, provides comparable quality to new construction. RENOVATION OVERVIEW: PHYSICAL RENOVATION/REPOSITIONING: $5,250,000 SIGNAGE PROGRAM & RENOVATION: $144,000 LANDSCAPING RENOVATION: $120,000 ROOF REPLACEMENT: $98,000 LEASING COSTS (TI S, LC S, & LEGAL): $707,000 LEASING COSTS (FUTURE TENANTS): $65,000 OTHER CAPITALIZED EXPENSES: $340,000 TOTAL RENOVATION: $6,700,000+ 5
INVESTMENT HIGHLIGHTS OUTSTANDING LOCATION At the center of the Class A Office Building Corridor of the greater Airport Area, TRADE Marketplace & Food Hall is the epicenter for dining and entertainment EXPERIENTIAL AND DAILY NEEDS TENANCY Offers a consumer experience that cannot be duplicated on the internet BUILT-IN DEMAND The Irvine Business Complex draws the largest daytime population in Orange County and continues to rapidly increase its residential density LACK OF COMPETITION Less than 2.4% of the real estate within a one-mile radius (±31MSF) is zoned for retail uses; given the strict zoning standards of the IBC, this asset commands a scarcity premium due to the dearth of competitive retail projects in the immediate trade area HIGH BARRIERS TO ENTRY Infill location and strict Irvine Business Complex (IBC) retail development standards severely limit future competitive retail projects WITHIN A 1-MILE RADIUS 56 CLASS A OFFICE BUILDINGS 17 MILLION SF 10.5 MILLION 8,509 PLANNED OR EXISTING MULTIFAMILY UNITS PASSENGERS TRAVEL THROUGH JOHN WAYNE AIRPORT ANNUALLY 6 TRADE Marketplace & Food Hall
IMPRESSIVE DEMOGRAPHICS With over 150,000 people within a 3-mile radius and average household incomes exceeding $100,000, TRADE is ideally situated within this affluent market EXCEPTIONAL FOOD AND BEVERAGE CONCEPTS Offering a breadth of artisan and chef inspired cuisine options, the project fulfills a niche that was previously missing from the market CAPTURING SALES FROM NEARBY OFFICE EMPLOYEES TRADE provides a much needed amenity to the surrounding office employee base and total daytime population exceeding 250,000 in a drastically under-served retail trade area WITHIN A 3-MILE RADIUS $2.9B IN ANNUAL RETAIL SALES 250,691 TOTAL EMPLOYEES TOTAL BUSINESSES 18,052 AVG HH INCOME $105,814 7
DEMAND DRIVERS OFFICE TENANT DEMAND - Exceptional demand from the surrounding Class A office tenants drawing from over 60,000 employees within a 1-mile radius USC ORANGE COUNTY CENTER (0.1 MILES) - Provides classes for working professionals to pursue graduate degrees ALLERGAN CORPORATE CAMPUS (0.1 MILES) - A 525,000 SF corporate campus within walking distance to TRADE JOHN WAYNE AIRPORT (0.5 MILES) - 10.5 million passengers annually CENTRAL PARK WEST (0.5 MILES) - A 12 neighborhood complex with 1,380 urban style units PARK PLACE (0.5 MILES) - A 105 acre mixed-used complex with 2.5 million SF of office and 520 multi-family units THE BOARDWALK (0.5 MILES) - Adding 540,000 SF of creative office space with an open air format TUSTIN LEGACY RESIDENTIAL (2.2 MILES) - 4,600 unit development FLIGHT AT TUSTIN LEGACY (2.2 MILES) - 870,000 SF of modern creative office space UNIVERSITY OF CALIFORNIA AT IRVINE (3.0 MILES) - 32,750 students CONCORDIA UNIVERSITY IRVINE (3.6 MILES) - 4,046 students NIGHT/WEEKEND TRAFFIC - Over 15,000 multifamily units either newly developed, under construction or approved in the Irvine Business Complex (IBC) SKYPARK BUSINESS CENTER 80,000 SF IRVINE COMPANY JOHN WAYNE AIRPORT +/- 10.5 MILLION PASSENGERS/YEAR EXECUTIVE PARK 15 BUILDINGS 580,000 SF MACARTHUR BLVD. 18552-18662 MACARTHUR 121,144SF TERRACE TOWER 1900 MAIN ST. 172,250 SF 2151 MICHELSON 93,000 SF (313,040 VPD) MIC 28 KILR 8 TRADE Marketplace & Food Hall
IRVINE CONCOURSE EQUINOX PWC EL TORITO GRILL MCCORMICK & SCHMICK S ORACLE TOWER 272,887 SF JOHN HANCOCK IRVINE BUSINESS COMPLEX (IBC) QUICK FACTS 362,800-ACRE PLANNING AREA 7,032 57% OF IBC BUSINESSES ARE OFFICE MULTIFAMILY UNITS EITHER UNDER CONSTRUCTION OR APPROVED JAMBOREE CENTER 1,600,000 SF IRVINE COMPANY LAKESHORE TOWERS I & II 649,294 SF GE REAL ESTATE 24 HOUR FITNESS ASTORIA @ CENTRAL PARK 240 MULTI-FAMILY UNITS 18301 VON KARMAN 225,729 SF 18201 VON KARMAN 231,109 SF NEW YORK LIFE IRVINE TOWERS 1,123,961 SF IRVINE COMPANY CENTRAL PARK WEST 1,380 UNITS 2211 HELSON 4,400 SF OY REALTY 18401 VON KARMAN 114,724 SF WALK TIME : APPROXIMATELY 5 MINUTES VON KARMAN AVE. MICHELSON DR. ALLERGAN CORPORATE CAMPUS 525,000 SF MASSIVE DAYTIME POPULATION WITH LIMITED RETAIL AND FOOD OPTIONS IN THE IMMEDIATE AREA
10 TRADE Marketplace & Food Hall
DEMOGRAPHICS 1-MILE 3-MILE 5-MILE 2017 Population 10,871 157,672 545,911 2000-2017 Pop. Growth 560.0% 27.6% 13.7% Households 2,230 32,487 114,830 Avg HH Income $98,670 $105,282 $106,855 ORANGE COUNTY QUICK FACTS 3,212,946 POPULATION 3.80% UNEMPLOYMENT RATE 37.9 MEDIAN AGE TOTAL RETAIL SALES 190,000 $53.9 B JOBS ADDED IN 2016 11
INVESTMENT ADVISORS DEBT ADVISOR BRYAN LEY Managing Director 310.407.2120 bley@hfflp.com CA Lic. #01458927 JUSTIN KUNDRAK Director 310.407.2145 jkundrak@hfflp.com CA Lic. #01994398 GLEB LVOVICH Managing Director 949.798.4115 glvovich@hfflp.com CA Lic. #01496699 DOUG BOND Senior Managing Director 310.407.2170 dbond@hfflp.com CA Lic. #01701004 MARK WINTNER Managing Director 310.407.2118 mwinter@hfflp.com CA Lic. #01338778 REAL ESTATE ANALYST MARK DEGIORGIO Associate 949.798.4138 mdegiorgio@hfflp.com CA Lic. #02026853 2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 25 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. www.hfflp.com