for sale or lease - images1.loopnet.com · • the property offers an open-plan warehouse that can...

FOR SALE OR LEASE

Print & Ship SerivcesSM

PACIFIC OCEAN

CAMINO SANTA FE

FLANDERS DR

DEL MAR

STARBUCKS

GOOGLE

TORREY PINES GOLF COURSE

MESA RIM RD

SUMMER RID

GE R

D

GARY STACHE Lic. 00773736 +1 949 725 8532 [email protected]

ANTHONY DELORENZOLic. 01706686 +1 949 725 8425 [email protected]

JIM HATCHLic. 01236415 +1 858 546 2618 [email protected]

DOUG MACK Lic. 01804065+ 949 725 [email protected]

MATT POURCHO | SAN DIEGOLic. 01705763 +1 858 546 4622 [email protected]

BILL DOLAN Lic. 01188240 +1 858 546 [email protected]

LEASING DEBT & STRUCTURED FINANCE

CAPITAL MARKETS EXPERTS

INVESTMENT OVERVIEW

04AREA OVERVIEW

16PROPERTY OVERVIEW

10OWN VS. LEASE ANALYSIS

18

FLANDERS DR

04 INVESTMENT OVERVIEW

4

• The Property consists of an attractive industrial building with an impressive bright-entry lobby, exceptional glass line with canyon views, building-top signage, ±22-foot clear height, fenced/secured parking lot, dock high loading, heavy power (4,000 Amps @480 volts), upgraded fire supression system, excellent egress/ingress and nearby amenities. For prospective owner/users, the Property would serve as an ideal corporate headquarters for an owner-user seeking a lease savings trade-off.

• The Property is an exceptional opportunity for an owner-user to acquire the only flex building for sale in Sorrento Mesa that offers between 40,000 and 60,000 square feet of contiguous space for occupancy. The purchase provides protection against future rental rate hikes and after-tax equity accumulation.

• The Property offers an open-plan warehouse that can accommodate custom space configuration, 2 dock-high doors, 3 grade level doors, and 13,555 square feet of office space that, together, provide a convenient “plug-and-play” environment.

IDEAL CORPORATE HEADQUARTERS OWNER/USER INDUSTRIAL FLEX OFFERING

INVESTMENT HIGHLIGHTS

9880 MESA RIM RD / 5

• As one of the leading commercial markets in San Diego, Sorrento Mesa provides the Property with access to the region’s highest density of Fortune 500 companies, including Google, Qualcomm, Sony, Samsung, Intel, BP, AT&T, Verizon, L3, BD Biosciences and Time Warner Cable, to name a few.

• The Property has excellent regional access and is well-served by San Diego’s major freeways. It is only2.5 miles from the I-805, 4 miles from Interstate 15, and less than 15 minutes from every major San Diego freeway.

• Surrounding the Property is an abundance of amenities, including proximity to an exceptional employment base and quick access to both executive and workforce housing. The Property’s three-mile radius is supported by 7,432 businesses and a 142,908-employee base, an adult population that is almost 70% college-educated and an average household income that is $113,569. The Property is approximately 2 miles from the University of California, San Diego, one of the country’s top global university.

• Within 3 miles, there are of 30+ restaurants, 26 banking locations, 8 grocery stores, 7 health and fitness centers, and 7 hotels—many of which are within a walking distance. This includes a neighborhood shopping center within walking distance that features Starbucks, LA Fitness, Bevmo, and close to dozen eateries.

ATTRACTIVE SORRENTO MESA LOCATION WITH EXCEPTIONAL REGIONAL ACCESS

WITHIN 3 MILES, THERE ARE:

» APPROXIMATELY 45,655 SF

» ±30% OFFICE AND 70% WAREHOUSE

» ±21’ - 22’ CLEAR HEIGHT

» 2 DOCK-HIGH DOORS AND 3 GRADE-LEVEL LOADING

DOORS (POTENTIAL FOR 4) (ALL ±12’X12’)

» 102 PARKING SPACES (EXPANDABLE)

» FIRE SPRINKLER SYSTEM

» AT&T FIBER CONNECTIVITY TO BUILDING

» 4,000 AMPS (277/480 VOLT)

» AVAILABLE MARCH 1, 2019

» LEASE RATE: $1.15/SF PER MONTH NET OF EXPENSES

» SALE PRICE: $9,587,550 ($210/SF)

PROPERTY FEATURESINVESTMENT HIGHLIGHTS

8GROCERY STORES

30RESTAURANTS

7HOTELS

26BANKING LOCATIONS

7HEALTH & FITNESS CENTERS


10 PROPERTY OVERVIEW

10

MES

A RI

M R

D

ADDRESS

9880 MESA RIM ROAD, SAN DIEGO, CA 92121

BUILDING SIZE

± 45,655 SF (30% OFFICE; 13,555 SF)

APN341-420-01

LAND SIZE± 99,250 SF / ±2.28 ACRES

YEAR BUILT1997

STORIESONE (1) WITH MEZZANINE

PARKING102 SURFACE PARKING STALLS

PROPERTY DESCRIPTION


1ST FLOOR38,874 SF

2ND FLOOR MEZZ. OFFICE6,781 SF

1ST FLOOR38,874 SF

2ND FLOOR MEZZ. OFFICE6,781 SF

FLOORPLANS

DH

DH

GL

GL

ENTRY

LOBBY

MAINENTRY

BREAKROOM

ENTRY

CONFERENCEROOM

COPY ROOM

OFFICE

EXECUTIVE OFFICE

LOADING DOORS:DH: DOCK HIGH (2)GL: GRADE LEVEL (3) (POTENTIAL FOR 4)

GL

GL POTENTIAL

12

ALARM SYSTEMThere is an existing ADT alarm system at the property that is controlled by the tenant.

ZONINGIL-2-1 (Light Industrial District)

LOADING Two (2) dock-high loading doorsThree (3) grade level / drive-in ramp doors with two (2) additional drive-in doors currently walled off.

CONSTRUCTION TYPEConcrete and steel frame structural system.

LIFE SAFETY/FIRE PROTECTIONThe building is fully protected by a wet sprinkler system (.60gpm/2,000 sf & .50gpm/2,000 sf fire sprinklers).

EXTERIOR FINISHES, DOORS & WINDOWSTilt-up reinforced concrete panels and tinted windows in aluminum framing system.

BUILDING AND PARKING LOT LIGHTINGInterior Lights: Fluorescent – Parking Lot: High Pressure Sodium.

HVAC SYSTEMThe office areas are served by rooftop package units.

ROOFING SYSTEMBuilt-up roof system over glue lam wood frame punctuated with skylights.

PROPERTYDESCRIPTION

POWERThere is currently 4,000 Amps of 480/277 volts 4 wire three phase power there being fed from one meter.


14 AREA OVERVIEW

14

18 OWN VS. LEASE ANALYSIS

18

Financial Information Disclaimer: You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

Jim HatchVice [email protected]

SALE OPPORTUNITY | 45,655 SF PURCHASE PRICE: $9,587,550

9880 Mesa Rim Road

BENEFITS OF OWNERSHIP LEASE vs OWN SCENARIO

Purchase Assumptions Lease AssumptionsPurchase Price 9,587,550 Size (Square Feet) 45,655 Improvements $0 NNN Lease rate per sq ft/mo $1.15Closing Costs $123,656 Monthly Lease Payment $52,503Total Project Cost 9,711,206$

Start-Up CostsStart-Up Costs Prepaid Rent $105,007

10% Down Payment $958,755 Security Deposit $52,503Total Start-Up Costs $958,755 Improvements $0

Total Start-Up Costs $157,510

Monthly Costs Per Sq. ft.Mortgage Payment $1.10 $50,096 Monthly Costs Per Sq. ft.Operating Expenses $0.25 $11,414 Lease Payment $1.15 $52,503

Operating Expenses $0.25 $11,414

Total Monthly Costs $61,510 Total Monthly Costs $63,917Total Monthly Costs Per SF $1.35 Total Monthly Costs Per SF $1.40

Monthly Ownership Benefits (Estimated) Monthly Lease Benefits (Estimated)Tax Benefits Tax Benefits

Depreciation Benefit $3,442 Depreciation Benefit $0Expense Deduction $2,397 Lease Deduction $11,026Interest Deduction (10 yr Avg.) $7,188 Expense Deduction $2,397

Other Benefits Interest Deduction n/a Rental Income Including Tenant Expenses $0 Other Benefits

Rental Income $0Investment Return on Excess Cash Flow $120 Avg. Appreciation n/a Avg. Appreciation 3.0% $23,969 Total Lease Benefits $13,423Total Ownership Benefits $37,116

Total Effective Monthly Cost: $24,394 Total Effective Monthly Cost: $50,494Total Effective Monthly Cost Per SF: $0.53 Total Effective Monthly Cost Per SF: $1.11

Ownership Analysis SummaryAnnual Effective Cost Difference $313,201Average Annual Principal Pay down $186,364Annual Wealth Creation $499,56410 Year Wealth Creation $4,995,645

• Depreciation Tax Benefit = Purchase Price X 80% + Improvements / 39 years / 12months X 21% Tax Rate• Estimated Monthly Appreciation = Purchase Price and Improvements x 3% Appreciation Rate/12 months• Financing: SBA Loan, 90% LTV financed over 27.5 years at 5.11% blended interest rate• Equity and Cash Flow returns based on 8% annual investment rate

FAVORABLE TAX DEDUCTIONS TO IMPROVE THE BOTTOM LINE

*Mortgage Loan Interest*Annual depreciation*Cost of building improvements

ACQUIRING AN ASSET THAT CREATES VALUE (Wealth Builder)

*Potential source of rental income*Equity Build-up/Appreciation in asset value over time*Diversification of business profits

POTENTIAL SOURCE OF PASSIVE INCOME

*Income stream from leasing a portion of the property

BENEFITS OF OWNING PROPERTY

*Space can be modified to accommodate changes in the business

CBRE

© 2018 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. We have not verified it and makes no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

OWN LEASE

BUSINESS LENDING

All figures are provided for informational purposes only. Consult with your tax andfinancial advisors regarding the tax benefits of property ownership and deductibility ofmortgage loan interest.


GOOGLE

20

AFFILIATED BUSINESS DISCLOSURE

CBRE, Inc. operates within a global family of companies

with many subsidiaries and related entities (each an

“Affiliate”) engaging in a broad range of commercial real

estate businesses including, but not limited to, brokerage

services, property and facilities management, valuation,

investment fund management and development. At times

different Affiliates, including CBRE Global Investors, Inc. or

Trammell Crow Company, may have or represent clients

who have competing interests in the same transaction.

For example, Affiliates or their clients may have or express

an interest in the property described in this Memorandum

(the “Property”), and may be the successful bidder for the

Property. Your receipt of this Memorandum constitutes

your acknowledgement of that possibility and your

agreement that neither CBRE, Inc. nor any Affiliate has an

obligation to disclose to you such Affiliates’ interest or

involvement in the sale or purchase of the Property. In

all instances, however, CBRE, Inc. and its Affiliates will act

in the best interest of their respective client(s), at arms’

length, not in concert, or in a manner detrimental to any

third party. CBRE, Inc. and its Affiliates will conduct their

respective businesses in a manner consistent with the law

and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENT

Your receipt of this Memorandum constitutes your

acknowledgment that (i) it is a confidential Memorandum

solely for your limited use and benefit in determining

whether you desire to express further interest in the

acquisition of the Property, (ii) you will hold it in the

strictest confidence, (iii) you will not disclose it or its

contents to any third party without the prior written

authorization of the owner of the Property (“Owner”)

or CBRE, Inc., and (iv) you will not use any part of this

Memorandum in any manner detrimental to the Owner

or CBRE, Inc.

If after reviewing this Memorandum, you have no further

interest in purchasing the Property, kindly return it to

CBRE, Inc.

DISCLAIMER

This Memorandum contains select information

pertaining to the Property and the Owner, and does not

purport to be all-inclusive or contain all or part of the

information which prospective investors may require

to evaluate a purchase of the Property. The information

contained in this Memorandum has been obtained

from sources believed to be reliable, but has not been

verified for accuracy, completeness, or fitness for any

particular purpose. All information is presented “as is”

without representation or warranty of any kind. Such

information includes estimates based on forward-looking

assumptions relating to the general economy, market

conditions, competition and other factors which are

subject to uncertainty and may not represent the current

or future performance of the Property. All references to

acreages, square footages, and other measurements are

approximations. This Memorandum describes certain

documents, including leases and other materials, in

summary form. These summaries may not be complete

nor accurate descriptions of the full agreements

referenced. Additional information and an opportunity

to inspect the Property may be made available to

qualified prospective purchasers. You are advised to

independently verify the accuracy and completeness

of all summaries and information contained herein, to

consult with independent legal and financial advisors,

and carefully investigate the economics of this transaction

and Property’s suitability for your needs. ANY RELIANCE

ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT

YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion,

to reject any or all expressions of interest or offers to

purchase the Property, and/or to terminate discussions

at any time with or without notice to you. All offers,

counteroffers, and negotiations shall be non-binding

and neither CBRE, Inc. nor the Owner shall have any legal

commitment or obligation except as set forth in a fully

executed, definitive purchase and sale agreement delivered

by the Owner.


GARY STACHE Lic. 00773736 +1 949 725 8532 [email protected]

ANTHONY DELORENZOLic. 01706686 +1 949 725 8425 [email protected]

JIM HATCHLic. 01236415 +1 858 546 2618 [email protected]

DOUG MACK Lic. 01804065+ 949 725 [email protected]

MATT POURCHO Lic. 01705763 +1 858 546 4622 [email protected]

BILL DOLAN Lic. 01188240 +1 858 546 [email protected]

DEBT & STRUCTURED FINANCE

22

for sale or lease - images1.loopnet.com · • the property offers an open-plan warehouse that can...

Documents