1360 logan ave

ADVISORS

MashianAssociatesADDING VALUE

SALES | LEASING | ADVISORYDavid MashianSenior Vice President

(949) 954-3725 Direct

(310) 903-6907 Mobile

[email protected]

CA BRE Lic. #01332822

Steve von SeggernSales Associate

(949) 954-3722 Direct

(714) 305-7948 Mobile

[email protected]

Coldwell Banker Commercial

2600 Michelson Drive, Suite 100

Irvine, CA 92612

(949) 954-3700 Main

www.CBCAdvisors.com

1360 Logan Ave

Costa Mesa, CA 92626


Table of Contents

1. PROPERTY OVERVIEWProperty InformationProperty PhotosLocation MapAerial PhotosParcel MapTenant Overviews

2. AREA OVERVIEWCity Information and Area DescriptionDevelopments and TrendsDemographicsMarket Trends

3. RENTAL ANALYSISMarket Rent ComparableSummary of Rent ComparableRent Comparable Map

4. SALES ANALYSISIndividual Sales ComparableSummary of Sales ComparableSales Comparable Map

5. ON MARKET COMPARABLEOn Market ComparableOn Market SummaryOn Market Map

6. INVESTMENT OVERVIEWStrengths and WeaknessesPrice MatrixFinancial AnalysisRent RollPrice Sensitivity Analysis

ADVISORS

1. PROPERTY OVERVIEW


1360 Logan Ave, Costa Mesa, CA 92626: Property Information

Building:Type: 3 Star Flex Light DistributionRBA: 8,075 SFStories: OneClass: BConstruction: Reinforced ConcreteYear Built: 1973Tenancy: MultiOwner Occupied: NoBuilding Height: 14’Docks: NoneDrive Ins: 9 Total; 8’ w x 10’ hCranes: NoneRail Spots: NoneCross Docks: NoneLevelators: NoneTruck Wells: NoneParking: 27 free Surface Spaces are available; Ratio of 2.83/1,000 SFTaxes: $093/SF (2015)

Land:

Land Acres: 0.49 ACLand SF: 21,201 SFBldg. FAR: 0.14Zoning: MGParcel: 141-191-29


Property Photos


Location Map


Aerial Photos


Parcel Map


Tenant OverviewsSIGN DEPOT: Offering a variety of highest quality custom signs including large format digital prints, interior and exterior signs, monument signs, stand-off wall displays, custom wall wraps, illuminated signs, fleet vehicle graphics and wraps, banners, magnetic signs, digital signs, sand blasted signs, and more.

SHUYOKAN RYU MARTIAL ARTS CENTER: Offers classes for adults, youth, and law enforcement in practical applications of the traditional martial arts of Yoshinkan Aikido, Kodokan Judo, Jujutsu and Shotokan Karate Jutsu.

SENSEI DYE: Of Shuyokan Ryu Martial Arts Center.

AIKIDO FEDERATION-CALIFORNIA:Aikido is a combination of many martial arts and has no form or patterns in the techniques, only the movements of heaven, earth and nature. Aikido aims to eliminate aggression by blending with an attack to reduce and control conflict.

I.T. TAPPING, INC:Machine shop, established 1987.

ANTHONY’S PURE WATER SYSTEMS:“The Water Doctors.” Accredited sales, service, and repairs of water purifier systems.

TAPPING

T.

I.

ADVISORS

1. AREA OVERVIEW


City Information and Area Description

Costa Mesa is to the action sports industry as Silicon Valley is to computers. The city, about a mile from the Pacific Ocean, has given birth or is now home to many of the leading companies in the surf-skate-wear industry, including Quicksilver, Hurley, Volcom, Paul Frank, and RVCA.

Costa Mesa's Westside, with reasonable rents and proximity to the Pacific Ocean (about one mile), has proven fertile soil for action sports companies and even businesses that cater to their customers such as Wahoo's Fish Tacos. The youth culture vibe has also sparked cutting edge retail centers in Costa Mesa such as The Camp, The Lab, and the SoCo Collection.

Costa Mesa is situated between Los Angeles and San Diego in the heart of affluent coastal Orange County, just one mile from the beach. It's intersected by three freeways. And it's adjacent to John Wayne Airport. Few cities in the United States can match Costa Mesa's location.

Demographics is another advantage. Costa Mesa and the surrounding community (which includes neighboring Newport Beach and Irvine) provide some of the most attractive demographics in the nation with purchasing power that generates more than $45 million in annual retail sales tax in a city whose population is 111,163.

City Hall also insures a business-friendly atmosphere, from its super low business license fees ($201 is maximum annual cost) to expedited services that cut through traditional red tape and get your business up and running without delay or government-induced headaches.

The retail environment is unique, allowing for developments such as South Coast Plaza (the most successful retail center in the United States), the counter-cultural Camp and LAB shopping centers, the cutting-edge SoCo Collection and The Triangle, and the East 17th Street Promenade that's become home to some of Southern California's most innovative and hottest retailers.


Developments and Trends


Demographics

Local Market Trends (www.costar.com)

ADVISORS

3. RENTAL ANALYSIS


Market Rent Comparable

ADDRESSAVAILABLE SPACE(S) SF

BASE RENT/SF

LEASE TYPETOTAL BASE

RENTNOTES

1)

1260 Logan St 1,728 $1.05 NNN $1,814 OCCUPANCY RATE: 89%

Costa Mesa, CA 92626 DAYS ON MARKET: 15

PARKING RATIO: 4/1,000

YEAR BUILT: 1969

BUILDING SIZE SF: 15,552

2)

1281 Logan St 4,762 $0.95 IG $4,524 OCCUPANCY RATE: 85%



YEAR BUILT: 1970


3)

2930 Grace Lane 2,121 $1.25 MG $2,651 OCCUPANCY RATE: 92%



YEAR BUILT: 1972


4)

3303 Harbor Blvd 2,540 $1.38 IG $3,505 OCCUPANCY RATE: 100%


PARKING RATIO: 2.6/1,000

YEAR BUILT: 1973



Summary of Rent Comparable

Property 1, $1.05

Property 2, $0.95

Property 3, $1.25

Property 4, $1.38

Average, $1.16

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

BASE RENT/SF


Rent Comparable Map

ADVISORS

4. SALES ANALYSIS


Individual Sales Comparable

1)

2)

3)

4)

ADDRESS PRICECLOSE DATE

CAP RATE(Market)

SQUARE FEET

PRICE/ SF

NOTES

2930+2940 College $4,800,000 2/1/2016 5.00% 24,400 $196.18 OCCUPANCY RATE: 100%

Costa Mesa, CA 92626 DAYS ON MARKET:


YEAR BUILT: 1960

1343 Logan Ave $1,875,000 5/1/2015 6.20% 12,020 $155.99 OCCUPANCY RATE: 100%

Costa Mesa, CA 92626 DAYS ON MARKET:


YEAR BUILT: 1960

3101 Red Hill Ave $3,400,000 8/7/2015 2.80% 11,200 $303.57 OCCUPANCY RATE: 100%



YEAR BUILT: 1980

3198 Airport Loop Dr $2,300,000 12/30/2015 3.40% 8,000 $287.50 OCCUPANCY RATE: 70%



YEAR BUILT: 1974


Summary of Sales Comparable

Property 1, 5.00%

Property 2, 6.20%

Property 3, 2.80%

Property 4, 3.40%

Average, 4.35%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

CAP RATE

Property 1, $196.18

Property 2, $155.99

Property 3, $303.57

Property 4, $287.50

Average, $235.81

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

PRICE/ SF


Sales Comparable Map

2

3

ADVISORS

5. ON MARKET COMPARABLE


On Market Comparable

ADDRESS LIST PRICEON

MARKETCAP RATE(Market)

SQUARE FEET

PRICE/ SF NOTES

2990 Grace Ln $3,595,000 65 Days 4.00% 15,000 $239.67 OCCUPANCY RATE: 100%

Costa Mesa, CA 92626


YEAR BUILT: 1965

NOTE: Single tenant

3506 Lake Center Dr $3,359,200 26 Days 3.40% 11,693 $287.28 OCCUPANCY RATE: 100%

Santa Ana, CA PARKING RATIO: 4/1,000

YEAR BUILT: 1989

NOTE: Condo

151 Kalmus Dr $2,670,000 90 Days 2.90% 8,217 $324.94 OCCUPANCY RATE: 100%

Costa Mesa, CA PARKING RATIO: 3/1,000

YEAR BUILT: 1981

NOTE: Condo

3505 Cadillac Ave $1,434,000 95 Days 4.10% 6,000 $239.00 OCCUPANCY RATE: 100%

Costa Mesa, CA PARKING RATIO: 2.93/1,000

YEAR BUILT: 1984

NOTE: Condo

1)

2)

3)

4)


On Market Summary

Property 1, $240

Property 2, $287

Property 3, $325

Property 4, $239

Average, $273

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

PRICE/ SF

Property 1, 4.00%

Property 2, 3.40%

Property 3, 2.90%

Property 4, 4.10%

Average, 3.60%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

CAP RATE


On Market Map

ADVISORS

6. FINANCIAL ANALYSIS AND PRICING


Strengths and Weaknesses

STRENGTHS

1. Fully leased

2. Multi tenant

3. Long term tenants

4. High demand area

5. History of rapid replacement of tenants during vacancies

6. Limited supply of industrial in this section of Costa Mesa

WEAKNESSES

1. Has not been remodeled since construction

2. Some deferred maintenance

3. Low traffic location and zoning limits use and prohibits redevelopment

4. Abuts residential use


Price MatrixSALES COMPARABLE VALUE INDICATORS

SUBJECT PROPERTY SOLD COMPARABLES TOTALS

NOI $73,060 (NOI / CAP%) 4.35% $1,679,540

SF 8,075 (GLA X $/SF) $235 $1,897,625

VALUE BASED ON SOLD COMPARABLES AVERAGES$1,788,583

COST/SF $221

CAP RATE 4.08%

ON MARKET COMPARABLES VALUE INDICATORS

SUBJECT PROPERTY ON MARKET COMPARABLES TOTALS

NOI $73,060 (NOI / CAP%) 3.60% $2,029,444

SF 8,075 (GLA X $/SF) $273 $2,204,475

VALUE BASED ON MARKET AVERAGES$2,116,960

COST/SF $262

CAP RATE 3.45%

LOAN UNDERWRITING VALUE INDICATORS

FINANCING PARAMETERS LOAN INFORMATION

DSCR 1.30 NOI $73,060

INTEREST RATE 3.70% (NOI / DSCR) YEARLY DEBT SERVICE $56,200

LOAN TO VALUE 55% MONTHLY DEBT SERVICE $4,683

LOAN AMTZ 30 MAXIMUM LOAN $1,017,490

VALUE BASED ON AVAILABLE MARKET FINANCING $1,849,982

FINANCIAL ANALYSIS

PROPERTY DETAILS FINANCING SUMMARY

Address 1360 Logan Ave Loan Type New First Trust Deed

City Costa Mesa Loan Amount $1,003,750

State CA Interest Rate 3.70%

ZIP Code 92626 Loan TermsFixed 5 Years, Due 5

Years

Market Orange County (California) Years Amortized 30

Submarket Airport Area Ind Debt Service Coverage Ratio 1.32

Assessor's Parcel Number

141-191-29 Monthly Loan Payment $4,620

Year Built 1973

Zoning MG OPERATING DATA

Rentable SF 8,075

Lot Size SF 21,201 INCOME CURRENT MARKET

Parking Spaces 27 Scheduled Gross Income $92,055 $112,404

Parking Ratio 2.83/1000 Less Vacancy Reserve 3% $2,762 3% $3,372

Gross Operating Income $89,293 $109,032

PROPERTY OVERVIEW Expenses 31.0% $28,578 25.4% $28,578

CAM Reimbursement $12,345 $12,345

Price $1,825,000

Net Operating Income

$73,060 $92,799

Down Payment 45% $821,250 Loan Payments $55,441 $55,441

Loan Amount $1,003,750Cash on Cash Return

2.15% $17,619 4.55% $37,358

Price Per Rentable SF $226

Land Price Per SF $86 ESTIMATED ANNUAL EXPENSES

Cap Rate - Current 4.00%

Cap Rate -Market

5.08% Real Estate Taxes 1.25%of Price $22,813

Insurance $0.15Per SF $1,211

LOCATION Maintenance & Repairs $0.10Per SF $808

Management Fees 1%of Gross $921

Industrial multi-tenant commercial property located in airport area Utilities $0.15Per SF $1,211

with easy access to 405, 55, 73, and 5 fwys. Cleaning & Trash Removal $0.10Per SF $808

Reserves $0.10Per SF $808

Total Expenses $3.54Per SF $28,578


Rent RollRENT ROLL AND INCOME ANALYSIS

Unit # Tenant Name SF Monthly Rent Rent / SF % SF Market Rent / SF Monthly Rent

100 Anthony's Pure Water Solutions 1,075 $1,021 $0.95 13.31% $1.16 $1,247

101 I.T. Tapping 875 $831 $0.95 10.84% $1.16 $1,015

102 Tenant Unknown 875 $831 $0.95 10.84% $1.16 $1,015

103 Sign Depot 875 $831 $0.95 10.84% $1.16 $1,015

104 Tenant Unknown 875 $831 $0.95 10.84% $1.16 $1,015

105 Tenant Unknown 875 $831 $0.95 10.84% $1.16 $1,015

106 David Dye 875 $831 $0.95 10.84% $1.16 $1,015

107 Aikido Federation 875 $831 $0.95 10.84% $1.16 $1,015

108 Shuyokan Ryu Martial Arts 875 $831 $0.95 10.84% $1.16 $1,015

TOTALS 8,075 $7,671 $0.95 100% $1.16 $9,367Total SF Total Rent Average Average Total Rent

CURRENT MARKETTotal Monthly Income $7,671 Projected Monthly Income $9,367

Annual Gross Income $92,055 Projected Annual Gross Income $112,404

Current Average Rent Per Rentable SF $0.95 Projected Average Rent Per Rentable SF $1.16Rental Upside 22%


Price Sensitivity Analysis

PRICE CAP RATE COST/SF

$2,115,675 3.45% $262.00 SUBJECT PROPERTY INFORMATION

$2,054,054 3.56% $254.37 NOI $73,060

$1,994,227 3.66% $246.96 SF 8,075

$1,936,143 3.77% $239.77

$1,879,750 3.89% $232.79

$1,825,000 4.00% $226.01 MARKET PRICE

$1,770,250 4.13% $219.23

$1,717,143 4.25% $212.65

$1,665,628 4.39% $206.27

$1,615,659 4.52% $200.08

$1,567,190 4.66% $194.08 Percentage Change Variable: 3%


Disclosure and Confidentiality

Coldwell Banker Commercial Advisors (“Agent”) has been engaged as the exclusive agent for the sale of investment offering by the owner of the Property (“Seller”).

The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller.

The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.

This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; andno portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent.

1360 logan ave

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