industrial development opportunity 26 acres industrial land · industrial development opportunity....

John Battle, SIORPrincipal

[email protected]

BRE License #00700493

Prepared by:

Industrial Development Opportunity26 ACRES INDUSTRIAL LAND

Lancaster, CA 93535

Lee & Associates® - LA North/Ventura, Inc. • Corporate ID #01191898A Member of the Lee & Associates Group of Companies

26050 Mureau Road, Suite 101, Calabasas, CA 91302Office 818.223.4388 • Fax 818.591.1450

26 ACRES INDUSTRIAL LAND Lancaster, CA 93535

Lee & Associates® - LA North/Ventura, Inc.

Section I

Executive Summary

Lee & Associates® - LA North/Ventura, Inc. 3


Executive Summary

THE PROPERTY: 25.77 Acres of Industrial Land Lancaster, CA 93536

APN: 3128-007-028 (19.03 Acres) 3128-007-029 (6.74 Acres)

HIGHEST & BEST PROPOSED USE: Industrial Business Park

ZONING: LBLI - Light Industrial

APPROVED USES: • Aircraft Related • Auto, Boat, Truck Repair & Service • Contractor’s Yard • Food Manufacturing & Processing • General Manufacturing • Recycling - Light Processing • Schools • Warehousing, Storage & Self Storage

For a complete list of approved uses, please go to the City of Lancaster website: (www.cityoflancasterca.org)

PRICE: $3,900,000 ($3.50 PSF)

COMMENTS: Excellent location with valuable Avenue L frontage

http://www.cityoflancasterca.org



Property Overview

The subject property consists of two parcels of industrial land located in the heart of the city of Lancaster. One parcel is approximately 19.03 acres and the other adjacent parcel consists of approximately 6.74 acres. Both parcels are flat which would require very little on-site grading costs. The properties have a combined frontage along Avenue L of nearly 900 feet. This should allow for multiple access points along Avenue L, one of the primary East/West streets in Lancaster. Avenue L has both on and off ramps to Highway 14 which is the heavily traveled freeway that connects the Antelope Valley communities of Lancaster and Palmdale to the close areas of the Santa Clarita Valley, San Fernando Valley and the balance of the entire Los Angeles County region.

Combined the parcels are large enough to accommodate just about any size requirement that a company may have that is considering relocating

or expanding into the dynamic Lancaster area. An experienced industrial real estate developer may also consider sub-dividing the property into a number of parcels to offer the flexibility to owner/users to own their buildings or to purchase a lot and build their own building.

There are a very limited number of “ready to build” industrial parcels in the Antelope Valley. The subject parcels location in the heart of Lancaster will appeal to a variety of potential buyers. The more established industrial markets of Santa Clarita and the San Fernando Valley have very little land available for development today. The few sites that are available are on the market for prices ranging from $25-$50 per square foot. The overall all vacancy rate in the industrial markets in those areas is less than 3%.

The timing for new industrial development in Lancaster has arrived.



Lancaster

The subject parcels are located in the Antelope Valley region of Los Angeles County in the incorporated city Lancaster. The Antelope Valley Region consists of a total population of approximately 500,000 people with approximately 65% of the residents living in either the cities of Palmdale or Lancaster. Approximately 170,000 people live in Lancaster which is the northernmost of the two cities. Highway 14 is the primary arterial that connects the two cities with the balance of the County of Los Angeles.

The city of Lancaster was incorporated in 1977 however the history of the area goes back into the 1870’s. The history of the area is tied to the railroads, Borax, Gold and most recently Aerospace. The United States Air Force discovered this area in the 1950’s as an ideal place to design and test such innovative airplanes as the SR-71, B1B, B2 and the Stealth Bomber. The main reason was the almost perfect weather year round for test flying such unique aircraft. The high desert weather consisted of nearly cloud free skies and very low humidity which is ideal for testing new aircraft. When the Air Force installed the Air Force Flight Test Center at Edwards Air Force Base, only 25 miles from Lancaster, this region became the home base for research, design and manufacturing for the Air Force and such major defense contractors as Lockheed-Martin, Northrop-Grumman and

Boeing. Although much of this work is done in the neighboring city of Palmdale the entire region benefits from this high profile industry.

The economy of this region has

been noted for its booms and busts. During the late 70’s and early 80’s the entire region was booming due to the high home prices in the greater Los Angeles area. Plentiful inexpensive land, a pro development environment and home builders eager to sell homes contributed to this boom. When the recession of the mid 80’s hit the entire country this region was severely affected. Unfortunately this became the pattern for future recessions including the most recent one of 2008. This region was very negatively affected by this most recent economic downturn because the industries most effected by the collapse, (housing, manufacturing and logistics) are the areas that were a large part of this area’s economy. In addition the sub-prime mortgage crisis was most prevalent in this area. The rate of foreclosures was much higher than in most cities in the region and the sales tax revenue fell by over 30% during

the 2008-11 time span. Although the Southern California region has had a very robust recovery from the 2008 recession, the Antelope Valley region has recovered at a much slower pace. This is primarily due to the fact that the economic drivers of this area have recovered at a much slower pace than the overall economy. Housing and manufacturing in particular are

still lagging in this area compared to the rest of Southern California.

There is hope however. The recent contract signed between Northrop-Grumman and the United States Air Force to build the next generation of stealth bombers is anticipated to generate as many as 5,000 jobs to the region. Although Northrop-Grumman is the lead contractor for



Lancaster

the project it has been reported that the $80 billion contract will include sub-contracting much of the work out to Lockheed, Boeing and many other firms in the area. Due to the fact that part of the contract included a massive tax credit in exchange for performing much of the work in Palmdale local officials are confident that this contract will be a major contributor to the overall economy of the Antelope Valley.

In addition officials from the City of Lancaster continue to establish initiatives to attract more business to the city. Tax incentives, infrastructure construction and job training programs have helped the city be designated the “Most Business Friendly City” in Los Angeles County.


Lee & Associates® - LA North/Ventura, Inc.

Section II

Property Description



Development Options

There are several options to consider in developing this centrally located property:

1. Sub-divide the 26 acres into several separate parcels of various sizes to accommodate a variety of users.

2. Develop an owner/user sale strategy to take advantage of the financing terms being offered by the SBA including all time low interest rates and 90% LTV terms to qualified borrowers.

3. Develop a finished lot sale program for those that desire to design and build their own building.

4. Work with the Economic Development Department of the City of Lancaster to help attract companies currently in the market for relocation or expansion of existing facilities.

There are numerous reasons for companies to consider establishing facilities in Lancaster:

� Lancaster is always at or near the top of the list of “Business Friendly Cities”

� Incentives such as job training allowances and state income tax rebates available

� A large qualified labor base

� Numerous affordable housing opportunities

� Less stringent air quality regulations than most other areas of Los Angeles County

� Total occupancy costs at least twenty-five (25) percent lower than other areas of the County

� Direct access to all of Los Angeles County via Highway 14



Aerial View



Locator Map



Parcel Map



Amenities Aerial

Lee & Associates® - LA North/Ventura, Inc.A Member of the Lee & Associates Group of Companies

Corporate ID #0119189826050 Mureau Road, Suite 101, Calabasas, CA 91302Office 818.223.4388 Fax 818.591.1450

JOHN BATTLE, SIORPrincipal

[email protected] License #00700493

industrial development opportunity 26 acres industrial land · industrial development opportunity....

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