R E T A I L INVESTMENT OPPORTUNITY Bill Shrader +1 858 677 5324 bill.shrader@colliers.com Ed Himmelberg +1 619 231 0055 edhimmelberg@gmail.com David Maxwell +1 858 677 5343 david.maxwell@colliers.com
THE INVESTMENT PREMIER LOCATION The Marina Neighborhood has emerged as one of downtown s most sought after destinations. LIMITED SUPPLY Highly desirable trade area, rare opportunity to acquire retail project of this size. STABLE RETAIL TENANTS Most of the ground floor commercial tenants have operated for many years at this highly coveted location, providing ownership with a stable income stream. VALUE CREATION Buyer has the ability to create value by leasing the existing vacant spaces. Colliers International is pleased to present the opportunity to acquire a flagship condominium space in Downtown San Diego s desirable Marina District, adjacent to the historic Gaslamp Quarter, and Downtown s most established and affluent neighborhoods. Located at the prime block bounded by First and Third Avenues, Harbor Drive & J Street, at the base of the iconic Harbor Club Towers, this commercial condominium provides an investor with the rare opportunity to acquire irreplaceable real estate in the heart of downtown San Diego. One block to the Gaslamp Quarter and steps from the Convention Center, Ralphs Supermarket, Central Business District, countless hotels, residential & Petco Park (home to the San Diego Padres). The phenomenal growth of downtown San Diego in the past twenty years has solidified the retail environment and has transformed Downtown into a true live/work/play urban lifestyle, not duplicated anywhere in Southern California. The property is located on three levels of the Harbor Club Towers, Downtown San Diego s first luxury highrise completed in 1992. The iconic 41-story dual high rises feature 201 residential units along with 64,000 SF of commercial space. There is a strong collection of tenants with Morton s the Steakhouse, Robert Cromean s Salon, Striders Clubhouse, and San Diego Wine and Culinary occupying the majority of the project. The units come with 81 underground parking spaces and a private loading dock. PRIDE OF OWNERSHIP Rare opportunity for investor to acquire commercial and residential space in an affluent and desirable neighborhood in the heart of all the action. DIVERSIFIED INTERNATIONAL DRAW/TOURISM Great weather aside, Downtown San Diego is recognized for its incredible location on the San Diego Bay. Its proximity to the airport, the Convention Center and thousands of hotel rooms has created the strongest regional draw and dining destination in San Diego. 2 HARBOR CLUB RETAIL COLLIERS INTERNATIONAL 3
THE OFFERING PROPERTY SUMMARY OFFERING TERMS Project Description Commercial Condominium on three levels of Harbor Club Price $14,750,000 Location Address Assessor s Parcel Number 535-347-15-08 Commercial Condominium Size Parking Loading Dock Block bounded by Third Avenue, First Avenue, J Street & Harbor Drive 285 J Street 330 Third Avenue 200 Harbor Drive Suites 105, 120 & 150 San Diego, CA 92101 64,000 Gross SF 42,810 Rentable SF 81 underground spaces Included Rentable Square Feet 42,810 Net Operating Income $908,361 (Stabilized: $1,032,149) Cap Rate TBD Percentage Leased 85.7% Transaction Timetable And Procedure Offers Contact listing broker to schedule a tour of the property. Twenty-four hour notice is appreciated. The Seller reserves the right to sell the property at anytime during the marketing period without prior notice. The property will be sold on an as-is basis. Stories Three Levels Year Built 1992 4 HARBOR CLUB RETAIL COLLIERS INTERNATIONAL 5
THE PROPERTY FIRST FLOOR VACANT 835 SF MEZZANINE VACANT 5,280 SF MEZZANINE Loading Dock Suite Sq. Ft. % Tenant Starts Expire Options Current Rent PSF/MO Current Annual Rent CPI Increases Projected Rent PSF/MO Projected Annual Rent #101 8,126 19.0% Striders 09/01/14 08/31/24 3-5yr, FMV $1.52 $148,218 3% annual $1.52 $148,218 #105 7,359 17.2% Robert Cromeans 04/19/04 04/30/24 2-5yr, FMV $2.35 $207,524 9% every 3rd yr $2.35 $207,524 #120 7,066 16.5% SD Wine 03/01/16 02/25/26 1-5yr, FMV $2.00 $169,584 3% after 3rd yr $2.00 $169,584 #150 5,280 12.3% Vacant Spa-Upper $- $- $- $- 2,367 5.5% Luxe Lounge 06/01/1028 05/31/23 1-5yr, FMV $1.00 $28,404 $.50Yrs2&3, 3%aft. $1.75 $49,707 #285 8,905 20.8% Morton's 03/23/97 03/31/27 2-5yr, FMV $2.02 $215,857 3% annual $2.02 $215,857 Morton's Percentage Rent* $126,942 $125,987 #330 835 2.0% Vacant $- $- $3.00 $30,060 2,872 6.7% Blue Room $- $- $- 42,810 Parking Income $71,450 $71,450 Storage Income $13,762 $13,762 100% Total Square Feet $1.75 $981,741 Stabilized: $1,032,149 6,115 14.3% Vacant Post Closing Unreimbursed Expenses (est): *3 Year Average, 2015-2017 ($73,380) $- NOI: $908,361 Stabilized: $1,032,149 6 HARBOR CLUB RETAIL COLLIERS INTERNATIONAL 7
TENANT ADDRESS ABOUT THE TENANTS & NEIGHBORS Mortons Steakhouse Striders Clubhouse Robert Cromean Salon San Diego Wine & Culinary Event Center Luxe Lounge & Spa 285 J Street 100 J Street 200 Harbor Drive, Suite 105 200 Harbor Drive, Suite 120 200 Harbor Drive, Suite 150 Morton's The Steakhouse, the nation's premier steakhouse group, specializes in classic, hearty fare, serving generous portions of USDA prime aged beef, as well as fresh fish, lobster and chicken entrees. The chain has more than 70 locations worldwide and is a subsidiary of Landry s, Inc. Downtown San Diego s first and only high-end horse betting club and lounge. Featuring a casual dining atmosphere with West Coast inspired fare, local and craft beers, and elevated classic, race-day cocktails, Striders is an exciting new take on the golden age of the Sport of Kings. Robert Cromeans is a hair industry icon and global visionary for Paul Mitchell. Voted artist of the year 7 times, Robert and his team and the most respected stylists in the country. The San Diego Wine & Culinary Event Center is home to some of the region s most educated and well-versed professionals in the industry. Events draw some of the best wine makers, sommeliers and local experts and entrepreneurs who have a passion for sharing their knowledge and enthusiasm. With a broad range of customized services, Luxe Lounge offers the highest quality products and service at an affordable price. From body scrubs and facials to spray tanning and nail services, hey provide clients a range of services that make them a onestop-shop for all of your beauty needs. PETCO PARK - 0.2 MILES 5 MIN WALK CONVENTION CENTER - 0.4 MILES 8 MIN WALK SEAPORT VILLAGE - 0.7 MILES 14 MIN WALK 8 HARBOR CLUB RETAIL COLLIERS INTERNATIONAL 9
WHERE THE CITY MEETS THE BAY MARINA DISTRICT The Marina District is Downtown San Diego s most established and park-like neighborhood. It is home to the Embarcadero, Seaport Village and the bayside San Diego Convention Center. The area stretches between the waterfront, Horton Plaza, downtown s office towers, and the historic Gaslamp Quarter. Its residents enjoy a number of open space and recreation areas including Pantoja Park, Children s Museum Park, Martin Luther King Jr. Promenade, and Seaport Village. The neighborhood draws tourists year round with more than 4,000 hotel units in the in the vicinity. Part of downtown s rich cultural history can be also be found here, including the Chinese Mission Museum within the Asian/Pacific Thematic Historic District, recognizing the contributions of Asian cultures to the city s development. 10 HARBOR CLUB RETAIL COLLIERS INTERNATIONAL 11
DOWNTOWN SAN DIEGO HISTORY Downtown San Diego is a vibrant waterfront city that continues to emerge and evolve. After more than three decades of redevelopment activity, Downtown San Diego is nationally recognized for setting new standards in urban renewal with the active and coordinated support of organizations including Centre City Development Corporation (Civic San Diego) and the Downtown San Diego Partnership. While Downtown has always been famous for its spectacular bay front location, it has only been during the past fifteen years that the City has aggressively worked to revitalize under-developed areas, support major entertainment attractions, expand tourism-related facilities, attract new business and encourage a strong residential population base. Since 1975, more than $1.45 billion have been publicly invested throughout downtown and matched by $13 billion of private equity. The results are outstanding. Downtown San Diego today is a thriving 24-hour urban metropolis that features an eclectic and fast-growing mix of residential, office, retail, dining, and entertainment projects and transformed Downtown San Diego in a world-class destination. LOCATION Downtown San Diego is located on San Diego Bay, in the centermost point of San Diego County. Geographically, downtown is bordered by Laurel Street and Interstate 5 on the north, Highway 94 and 17th Street on the east, Imperial Avenue on the south, and by San Diego Bay on the west. All major freeways and mass transit converge in Downtown San Diego, making it readily accessible to all points of the County. The San Diego International Airport is also less than five minutes away. POPULATION AND EMPLOYMENT GROWTH The most recent estimates by Claritas state that there are 37,095 persons living in 19,369 households in Downtown San Diego along with a workforce, students, visitors and renters of 97,911. Based on projections through the year 2030 being used for the Downtown Community Plan Update, Downtown s population is anticipated to increase to 90,000 residents and the workforce, students, visitors and renters to 165,000. RESIDENTIAL Downtown San Diego s eight distinct neighborhoods convey character and charm and create a vibrant atmosphere for residents, workers and visitors alike. The area offers a wide array of homes at varying price points. Currently, there are 20,363 units for 118 properties. Downtown is projected to account for more than 40 percent of the City s future residential construction, drawing more new homebuyers than any other single area of the County. Downtown residential demand is generated from the following sources: 78% from people moving from other parts of San Diego County, 12% from current Downtown residents upgrading their housing, and 10% from individuals relocating from areas outside of San Diego County. Approximately 44% of Downtown buyers work in areas outside of Downtown, 34% work within Downtown, and the remaining 22% are either unemployed or retired. J STREET SAN DIEGO CONVENTION CENTER ISLAND ST MARKET ST G STREET 5TH AVENUE R E T A I L 4TH AVENUE 5TH AVENUE 6TH AVENUE 7TH AVENUE BROADWAY 8TH AVENUE 12 HARBOR CLUB RETAIL COLLIERS INTERNATIONAL 13
AT A GLANCE Little Italy San Diego Zoo Balboa Park San Diego City College Central Business District Union Station/Santa Fe Depot Horton Plaza East Village Gaslamp R E T A I L Marina District Petco Park Convention Center 81,237 6,280 34.9M 38,039 $10.8B Total Jobs Located Downtown Total Number of Downtown Businesses Annual Visitors to San Diego Total Population of Downtown San Diego Annual Visitor Spending 824,276 11,786 250,000 20.6M Annual Attendees to the Convention Center Hotel Rooms Downtown Annual Cruise Passengers Air Passengers at San Diego International Airport 14 HARBOR CLUB RETAIL COLLIERS INTERNATIONAL 15
R E T A I L INVESTMENT OPPORTUNITY This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). 2018. All rights reserved. Bill Shrader +1 858 677 5324 bill.shrader@colliers.com Lic. No. 01033317 Ed Himmelberg +1 619 231 0055 edhimmelberg@gmail.com Lic. No. 00971977 David Maxwell +1 858 677 5343 david.maxwell@colliers.com Lic. No. 01465828