lancaster, ca - loopnet...lancaster is a charter city in northern los angeles county, in the...
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W Ave J
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TWENTIETH STREETOFFICE BUILDING
Conf ident ia l Of fe r ing Memorandum
44451 20th Street, WestLancaster, CA
SITE
Table of Contents
Exclusive Advisors
44451 20th Street, WestLancaster, CA
I Executive Summary Offering
II Property Information Site Overview
Replacement Cost Analysis
Property Aerials
Floor Plan
Site Plan
III Market Overview High Desert Overview
Lancaster Overview
Demographics
Points of Interest / Medical Office Buildings
Antelope Valley Office Market Overview
IV Comparables Active Sale Comparables
Sold Comparables
Janette WehrmannVice [email protected] BRE Lic #01213603
Walt WehrmannVice [email protected] BRE Lic #01168981
Danny [email protected] BRE Lic #02047757
44451 20TH STREET W 3
44451 20th Street WLancaster, CA
This is a confidential memorandum intended solely for your own limited use in considering whether to pursue negotiations to purchase 44451 20th Street West, Lancaster, California (the “Property”). The Owner has retained NAI Capital (“NAI”) as the exclusive sales broker to sell the Property. No other agent or broker is authorized to offer the Property unless and until that agent or broker has executed a written agreement with NAI and that agreement has been executed by their interested purchaser.
This confidential memorandum contains brief, selected information pertaining to the business and affairs of the Property and has been prepared by NAI. Although this confidential memorandum has been reviewed by representatives of the Owner, it does not purport to be all-inclusive or to contain all of the information which a prospective purchaser may desire. Neither the Owner nor NAI, nor any of their partners, officers, employees or agents have independently verified the information contained herein and they are not responsible for any errors or inaccuracies in the information. No representation or warranty, express or implied, is made as to the accuracy or completeness of this confidential memorandum or any of its contents, or any other written or oral communication transmitted to a prospective purchaser in the course of its evaluation of the proposed sale of the Property. There is no representation as to the environmental condition of the Property.
You agree that the memorandum and its contents are confidential, that you will hold and treat it in confidence and that you will not disclose this memorandum or its contents to any other firm or entity without prior written authorization. Photocopying or other duplication is prohibited. You will use this confidential memorandum only for the purpose of evaluating the possible acquisition of the Property. All prospective purchasers agree that they will conduct their own independent investigation of those matters which they deem appropriate in order to evaluate this offering.
Owner and NAI expressly reserve the right at their sole discretion to reject any or all proposals, offers, or expressions of interest in the Property and to terminate discussions with any party at any time with or without notice.
This confidential memorandum shall not be deemed a representation of the state of affairs of the Property or imply that there has been no change in the business or affairs of the Property since the date of preparation of this memorandum. The Property is submitted for sale subject to the right to make changes in any of the terms without notice.
Janette Wehrmann, Vice President949.468.2339 • [email protected] BRE Lic #01213603
Walt Wehrmann, Vice President949.468.2326 • [email protected] BRE Lic #01168981
Danny Delgado, Associate949.468.2331 • [email protected] BRE Lic #02047757
Exclusively Offered By:
Confidentiality & Restricted Use Agreement
Executive SummaryNAI Capital, as the exclusive advisor
to the Owner, is pleased to present for
review the pricing and market analysis
for 44451 20th Street West, Lancaster,
California.
Investment Summary
Price: $2,300,000.00
Price PSF: $154.66
Building Size: 14,871 SF
Asset Type:Commercial/Office,
Class B
Owner/User: Vacant
THE OFFERING
Built in 2000, this single-story asset was custom-built for the Social Security Administration office, which has outgrown their location. Its new owner/user will appreciate all the benefits utilized by the administration. Some of the features of the property include, but not limited to, the nicely landscaped with a portico entrance, welcoming employees and their visitors with automatic retractable doors leading to the vestibule and large reception area with guest restrooms. The interior makeup includes the build-out of three private offices, large storage room, file cabinet area, server/IT room, electrical room (lots of power!), janitorial closet, kitchen/dining area with enclosed patio and equipped with heavy data wiring.
Home and close to Edwards Air Force Base, the facility is conveniently located off the Antelope Valley Freeway. Lancaster is a charter city in northern Los Angeles County, in the Antelope Valley of the western Mojave Desert in Southern California; the 31st largest city in the state. In 2007 and 2013, the City of Lancaster was honored with the Eddy Award for Most Business-Friendly City in L.A. County from the Los Angeles County Economic Development Corporation (LAEDC) and has a refreshing entrepreneurial spirit and a “can-do” approach through creative problem solving and innovative approaches to addressing unique business needs.
• Stand-alone, Single User
• Well-Constructed & Maintained
• Ample Surface, Lit Parking
• Conveniently Located near Freeway, Retail, Hospitals
& More
44451 20TH STREET W 4
44451 20TH STREET W 5
44451 20th Street WLancaster, CA
Address 44451 20th St. W, Lancaster, 93534
APN# 3122-038-045
County Los Angeles
Market Los Angeles
Submarket Antelope Valley
Property Type Single Story Office
Year Built 2000
Ownership Interest
Fee Simple
Building Size ±14,871 SF
Available SF ±14,871 SF
Land Size 1.78 Acre
Percent Leased Vacant
Zoning Commercial
Parking Stalls 95
Parking Ratio 6.38:1,000
Major TenantPreviously Social Security Administration
Ingress/Egress20th St. W (shared easement)
Site Overview
44451 20TH STREET W 6
44451 20th Street WLancaster, CA
Replacement Cost Analysis
BUILDING SQ FT. OF 44451 20TH ST. W, LANCASTER 14,871
TOTALPER BUILDING SQUARE FOOT
Shell & Core Cost $2,3793,60 $160
Soft Cost (taxes, insurance, development fee, etc.) $892,260 $60
Tenant Improvements $892,260 $60
Site Work (est. 95 parking stalls @ avg. of $3,000 per stall) $285,969 $19.23
Estimated Land Cost (per building sqft.) $297,420 $20
Total Replacement Cost $4,747,269 $319.23
44451 20TH STREET W 7
44451 20th Street WLancaster, CA
Aerial Overview
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44451 20TH STREET W 8
44451 20th Street WLancaster, CA
Retail Aerial
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138
W Ave J
Lancaster Blvd
20th
St W
25th S
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Valley Central
Lancaster Marketplace
Antelope Valley Plaza
®
CEDAR Performing Arts & Playhouse
TM
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44451 20th Street WLancaster, CA
1446K VPD
14K VPD
40K VPD
28K VPD
26K VPD
27K VPD
SITE
W Ave J
Lancaster Blvd
Lancaster Blvd
20th
St W
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Traffic Count
138
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44451 20th Street WLancaster, CA
Floor Plan
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44451 20th Street WLancaster, CA
Site Plan
44451 20th Street WLancaster, CA
The High Desert refers to
the elevated portion of
the Mojave Desert that
is spread across four
counties in Southern
California. The Western
Antelope Valley portion of
the High Desert contains
the two largest cities of
Palmdale and Lancaster, and has a total population
of 341,219 residents. This portion is also part of Los
Angeles County, and is seventh largest urban area in the
Greater Los Angeles Metropolitan Area. The Antelope
Valley’s economy is built around the aerospace industry
surrounding Edward’s Air Force Base, which serves both
the Department of Defense and NASA. The Palmdale-
Lancaster urban area also benefits from its location on
the California State Route 14, which gives the region
easy access to Los Angeles County and the Ports of Los
Angeles and Long Beach.
The next largest region is centered on the Victorville-
Hesperia urban area, which is located in the Victor
Valley in the Inland Empire. This urban area is home
to 328,454 residents located across four incorporated
cities, Adelanto, Apple Valley, Hesperia, and Victorville,
and several unincorporated communities. The economy
of the Victorville-Hesperia urban area is similarly built
around the aerospace and transportation industries
surrounding the Southern California Logistics Airport,
which replaced George Air Force Base. The surrounding
industry supports logistics, as well as the manufacture of
several aircraft, including the Predator Drone in Adelanto.
The Victorville-Hesperia urban area also benefits from its
location to Interstate 15 and California State Route 18,
which gives the region broader access to Inland Empire
and the neighboring state of Nevada.
The remaining regions of the High Desert are located
in the eastern portion of Kern County and Inyo County.
The Kern County portion of the High Desert includes the
nearby cities of California City and Mojave City, which
support the immediate needs of the nearby Edwards
Air Force Base. This portion is connected to Bakersfield
and the western portion of Kern County in the Central
Valley by California State Route 58, which crosses the
Tehachapi Mountains. The Inyo County portion of the
High Desert is dominated by Death Valley National Park,
and serves as a border region to neighboring Nevada.
44451 20TH STREET W 11
High Desert Overview
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44451 20th Street WLancaster, CA
LANCASTER is a city in northern Los Angeles County and is a principal city in the Antelope Valley region and South-ern California’s High Desert. Lancaster is located approximately 70 miles north of Downtown Los Angeles, near the Kern County line. It is separated from the Los Angeles Basin by the San Gabriel Mountains to the south, and from Bakersfield and the San Joaquin Valley by the Tehachapi Mountains to the north.
According to the League of California Cities, Lancaster was the 35th largest city in California as of 2017. The current population is estimated to be 168,588 and is projected to increase 4.2% over the next five years to reach 175,657 in 2022. Lancaster’s population is diverse, with 48% identifying as white, 20% identifying as black, 1% as American Indi-an, 5% Asian, 20% as another race and 6% multiracial. Average household income in 2017 is $69,152 and is projected to increase 12.5% in five years to $77,786.
In 2017, Lancaster was ranked by Los Angeles Economic Development Corporation (LAEDC) as one of the most busi-ness-friendly cities in California. The city is home to major contractors such as Boeing, Northrop Grumman, Lockheed Martin, BAE, and government agencies, such as the NASA Dryden Flight Research Center, which are all active in de-sign, testing, and manufacturing of a variety of military and commercial equipment. Notable include the Space Shuttle orbiters, B-1 Lancer bomber, B-2 Spirit bomber, F-117 Nighthawk fighter, F-35 Joint Strike Fighter, and the Lockheed L-1011. The region is also proximate to the Mojave Air & Space Port, which is famous as the base of operations for Virgin Galactic and Scaled Composites.
Victorville Top Employers
Rank Employer Employees
1 Edwards AFB 11,990
2 China Lake NWC 6,520
3 Northrop Grumman 4,020
4 County of Los Angeles 3,912
5 Lockheed Martin 3,000
6 Antelope Valley Hospital 2,600
7Antelope Valley Union High School District
2,500
8 Lancaster School District 2,200
9 Palmdale School District 2,001
10 Antelope Valley Mall 1,975
Source: City of Lancaster CAFR 2016
*ProjectionSource: U.S. Census Bureau, Esri
Lancaster Overview
150,000
156,000
162,000
168,000
174,000
180,000
2010 2017 2022*
POPULATION ESTIMATED AVERAGE HOUSEHOLD INCOME
$50,000
$56,000
$62,000
$68,000
$74,000
$80,000
2010 2017 2022*
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44451 20th Street WLancaster, CA
Population 1 Mile 3 Mile 5 Mile
2017 Male Population 6,584 43,407 80,137
2017 Female Population 7,012 46,474 80,436
2017 Total Population: Adult 13,596 89,881 160,573
2017 Total Daytime Population 10,791 37,005 51,314
2017 Total Businesses 927 3,914 5,518
Race 1 Mile 3 Mile 5 Mile
2017 White 7,438 45,072 80,144
2017 Black or African American 2,326 18,252 31,232
2017 American Indian or Alaska Native 119 937 1,560
2017 Asian 968 5,179 9,259
2017 Hawaiian or Pacific Islander 28 212 361
2017 Other Race 1,921 15,213 29,356
2017 Two or More Races 797 5,016 8,662
2017 Hispanic 1,274 10,198 18,696
2017 Not Hispanic 9,109 56,969 99,580
Age 1 Mile 3 Mile 5 Mile
Median Age 35.5 33.7 33.3
Age 19 Years or Less 3,599 25,957 46,828
Age 20 to 64 Years 8,098 53,065 95,887
Age 65 Years or Over 1,899 10,859 17,858
2017 Total population: 10 to 14 years 879 6.5% 6,346 7.1% 11,464 7.1%
2017 Total population: 15 to 19 years 1,000 7.4% 6,483 7.2% 12,581 7.8%
2017 Total population: 20 to 24 years 1,053 7.7% 6,612 7.4% 12,233 7.6%
2017 Total population: 25 to 29 years 1,123 8.3% 7,435 8.3% 13,053 8.1%
2017 Total population: 30 to 34 years 903 6.6% 6,238 6.9% 11,462 7.1%
2017 Total population: 35 to 39 years 782 5.7% 5,533 6.2% 10,382 6.5%
2017 Total population: 40 to 44 years 732 5.4% 5,244 5.8% 9,676 6.0%
2017 Total population: 45 to 49 years 944 6.9% 6,011 6.7% 10,930 6.8%
2017 Total population: 50 to 54 years 953 7.0% 5,970 6.6% 10,677 6.6%
2017 Total population: 55 to 59 years 881 6.5% 5,446 6.1% 9,536 5.9%
2017 Total population: 60 to 64 years 729 5.4% 4,578 5.1% 7,939 4.9%
2017 Total population: 65 to 69 years 538 4.0% 3,586 4.0% 6,084 3.8%
2017 Total population: 70 to 74 years 486 3.6% 2,720 3.0% 4,580 2.9%
2017 Total population: 75 to 79 years 330 2.4% 1,890 2.1% 3,109 1.9%
2017 Total population: 80 to 84 years 252 1.9% 1,287 1.4% 1,994 1.2%
2017 Total population: 85 years and over 292 2.1% 1,376 1.5% 2,092 1.3%
Income 1 Mile 3 Mile 5 Mile
2017 Household Income: Average $80,515 $68,087 $71,387
2017 Household Income: Median $60,270 $54,062 $56,992
2017 Per Capita Income $27,693 $22,984 $22,943
Households 1 Mile 3 Mile 5 Mile
2017 Estimated Households 4,633 30,156 49,973
2022 Projected Households 4,948 32,287 53,240
2010 Census Households 4,554 28,937 48,293
2000 Census Households 4,382 25,126 40,633
Demographics
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Tarzana Treatment Ctr.
SITE
2 Miles
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Best Dollar Store
Avenue KAvenue K
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Lancaster
Lancaster Community
Hospital
A Children’sMedical Clinic
Lancaster Blvd.
West Avenue J8
25
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Antelope Valley Hospital
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138
Kaiser Permanente Med Group
Sierra Medical Group
Complete FamilyCare Medical
Lancaster Urgent Care
Antelope Valley Community Clinic
Points of Interest – MOB
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MARKET TRENDS
OFFICE ASKING RENT & VACANCY
3Q17 2Q17 3Q16
Asking Rent (Price/SF) $1.80 $1.85 $1.88
Vacancy Rate (%) 11.8% 11.8% 12.7%
Lease Volume (SF) 12,383 33,304 43,564
Sale Volume (SF) 98,046 166,994 22,363
Under Construction (SF) 0 0 0
Deliveries (SF) 0 0 0
The Antelope Valley office market vacancy rate dropped
90 basis points, going from 12.7% in the third quarter of
2016 to 11.8% in the third quarter of 2017. Comparatively,
the vacancy rate in the Los Angeles office market as
a whole was 11.2%, up 20 basis points over the prior
year. Rents in Antelope Valley have fluctuated over the
year, reflecting the moderate demand of the market. As
of the third quarter of 2017, asking gross rents averaged
$1.80/SF, representing a decline of 2.7% from the prior
quarter and 4.3% from the previous year. The majority of
the office buildings in the market are class B/C buildings
as opposed to Los Angeles’ extensive office market that
includes many newer, class A buildings that demand a
premium, bringing up the average gross rents to $3.02/
SF this quarter.
Employment is the main driver of office demand in Southern
California. As of September 2017, the unemployment
rate in Lancaster was 5.4% while in Palmdale it was
6.5%. Los Angeles County has effectively reached full
employment this quarter, increasing just 1.2% for a net
gain of 50,800 jobs from September 2016 to September
2017. Employment in office occupying sectors grew by
1.4%, representing a net gain of 25,600 new jobs, while
the unemployment rate dropped 20 basis points over the
year from 5.6% to 5.4% over the same period.
Source: NAI Capital Research Department, CoStar
Antelope Valley Office Market Trends 3Q 2017
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
$1.75
$1.80
$1.85
$1.90
$1.95
$2.00
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Vacancy (%) Asking Rent (Price/SF)
LEASE & SALE VOLUME
Source: NAI Capital Research Department, CoStar
0
50,000
100,000
150,000
200,000
250,000
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Squa
re F
eet
Lease Volume Sale Volume
44451 20TH STREET W 17
44451 20th Street WLancaster, CA
1
1805 W Avenue K, Lancaster, CA 93534Sale Price $1,750,000Sale Date 7/25/2017Building SF 10,688 SFPrice PSF $163.74 Lot Size 0.57AcresYear Built 1987Parking Spaces 47Property Type Office
3
1220 W Avenue J, Lancaster, CA 93534Sale Price $2,950,000 Sale Date 2/3/2017Building SF 17,066 SFPrice PSF $172.86 Lot Size 1.15 AcresYear Built 1990Parking Spaces 28Property Type Office
2
44444 16th St W, Lancaster, CA 93534Sale Price $1,752,381Sale Date 3/31/2017Building SF 10,120 SFPrice PSF $173.16 Lot Size 1.13 AcresYear Built 1986Parking Spaces 60Property Type Office
4
44404 16th St W , Lancaster, CA 93534Sale Price $2,847,619 Sale Date 3/31/2017Building SF 16,445 SFPrice PSF $173.16 Lot Size 0.89 AcresYear Built 1986Parking Spaces 60Property Type Office
Subject Property: 44451 20th Street W, Lancaster, CA 93534
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LANCASTER
PALMDALE
W Rancho Vista Blvd
Technology Dr
W Palmdale Blvd E Palmdale Blvd
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E Avenue K
E Avenue JW Avenue J
W Avenue J-8
E Lancaster BlvdW Lancaster Blvd
E Avenue M
W Avenue L
PALMDALE REGIONALAIRPORT
Active Sale Listings
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44451 20th Street WLancaster, CA
Sold Comparables
2
45
3
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1
LANCASTER
PALMDALE
W Rancho Vista Blvd
Technology Dr
W Palmdale Blvd E Palmdale Blvd
Sie
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W Columbia Way
E Avenue K
E Avenue JW Avenue J
W Avenue J-8
E Lancaster BlvdW Lancaster Blvd
E Avenue M
W Avenue L
PALMDALE REGIONALAIRPORT
Subject Property: 44451 20th Street W, Lancaster, CA 93534
5
936 W Avenue J-4 Lancaster, CA 93534Sale Price $799,900 Sale Date FOR SALEBuilding SF 8,000 SFPrice PSF $99.99 Lot Size 0.46 AcresYear Built 1985Parking Spaces 40Property Type Office
7
1220 E Avenue S Palmdale, CA 93550Sale Price $1,649,000 Sale Date FOR SALEBuilding SF 20,000 SFPrice PSF $82.45 Lot Size 1.73 AcresYear Built 1986Parking Spaces 80Property Type Office
6
1037 E Palmdale Blvd Palmdale, CA 93550Sale Price $2,995,000 Sale Date FOR SALEBuilding SF 13,752 SFPrice PSF $217.79 Lot Size 0.71 AcresYear Built 1987Parking Spaces 52Property Type Office
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Exclusive Advisors
44451 20th Street WLancaster, CA
Janette WehrmannVice [email protected] BRE Lic #01213603
Walt WehrmannVice President949.468.2326 [email protected] BRE Lic #01168981
Danny DelgadoAssociate949.468.2331 [email protected] BRE Lic #02047757
No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omis-sions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.