oriente plaza retail & office plaza ideally...offering memorandum a 31,159 sf mixed-use retail...

OFFERING MEMORANDUM

A 31,159 SF MIXED-USE RETAIL & OFFICE PLAZA IDEALLY SITUATED ON 69,472 SF OF LAND

ORIENTEPLAZA

18330 VENTURA BLVD & 5221 AVENIDA ORIENTE | TARZANA, CA 91356

BRANDON MICHAELSSenior Managing Director of InvestmentsSenior Director, National Retail GroupTel: (818) 212-2794Fax: (818) [email protected]: CA #01434685www.BrandonMichaelsGroup.com

PRESENTED BY:

PROPERTY OVERVIEW

FINANCIAL ANALYSIS

AREA OVERVIEW

COMPARABLES ANALYSIS

NON-ENDORSEMENT AND DISCLAIMER NOTICE

NON-ENDORSEMENTSMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Milli-chap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DE-TAILS.

DISCLAIMER

THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN AP-PRAISAL.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

OFFICES NATIONWIDEwww.marcusmillichap.com

G R O U P

BRANDON MICHAELS

JUSTIN RAPPELInvestment AssociateNet Leased Properties GroupTel: (818) 212-2732Fax: (818) [email protected]: CA #01908799www.BrandonMichaelsGroup.com

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2,3011592,301 Businesses

within a 1 square mile159 Free Surface Spaces are

available; Ratio of 5.13/1,000 SFVery walkable

79/100 on Walkscore.com

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A RARE OPPORTUNITY TO ACQUIRE A WELL LOCATED RETAIL AND OFFICE PLAZA SITUATED ON A 69,472 SF OF LAND IN TARZANA, CA

EXECUTIVE SUMMARY

The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively market for sale Oriente Plaza, a mixed-use property ideally located just east of the SE signalized corner of Ventura Boulevard and Reseda Boulevard at the corner of Ventura Boulevard and Avenida Oriente in Tarzana, California. Oriente Plaza is

ideally situated on a total of 69,472 square feet of land zoned. Included in the total land square footage is a 48,628 square foot parking lot directly behind the building on Avenida Oriente, which offer excellent parking with a total of 159 parking spaces creating a parking ratio of over 5.12 per 1,000.

Avenida Oriente currently features a diverse mix of retail tenants on the ground floor and numerous smaller office tenants on the second floor. Both the ground and second floor Tenants are on short term Leases, making this an ideal investment for investors looking for a well-located reposition opportunity, developers looking for future development potential, and Owner-User buyers looking to utilize a portion or all of the building for their own business use.

The property is located less than 0.3 of a mile from the Providence Tarzana Medical Center, the top regional medical center in the San Fernando Valley and a huge economic driver for the San Fernando Valley. As a result of the excellent parking and large land square footage, Oriente Plaza offers the unique opportunity for a medical conversion.

Tarzana CA is an affluent suburb of the San Fernando Valley that offers close proximity to the glittering nightlife and culture of nearby neighborhoods, but maintains a quiet impression within its borders. Boasting impressive architecture and verdant green spaces, Encino has housed a number of notable residents and is the home to multi-million dollar homes and a bevy of athletes, entertainers, and professionals. The average household income within a three mile radius is north of $102,000, and the immediate area boasts a dense immediate population, with over 463,000 people within a five mile radius. Ventura Boulevard is the world’s longest avenue of contiguous business and one of the primary east–west thoroughfares in the San Fernando Valley.

Orienete Plaza benefits from excellent visibility along Ventura Boulevard and presents a unique opportunity to acquire over 300 feet of frontage along the world’s longest avenue of contiguous business. This is a unique opportunity to acquire one of the largest parcels of land along Ventura Boulevard. This is the first time Oriente Plaza has been made available for sale since its construction in 1972.

ORIENTEPLAZA


ORIENTEPLAZA


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INVESTMENT HIGHLIGHTS

PRIME VENTURA BOULEVARD LOCATIONIdeally located just seast of the SE signalized corner of ventura boulevard and reseda boulevard on the corner of ventura boulevard and avenida oriente. Ventura boulevard is the world’s longest avenue of contiguous business.

SIGNIFICANT PARCEL OF LANDUnique opportunity to acquire multiple parcels of land totaling 69,472 SF/creating for a multitude of potential options with the property.

POTENTIAL MEDICAL CONVERSIONOriente Plaza offers a total of 159 parking spaces. With an excellent parking ratio of 5.13 per 1,000, this creates the opportunity to convert a portion or all of the building to medical use.

SHORT TERM TENANCY CREATES IMMEDIATE REPOSITION OPPORTUNITY OR IDEAL OWNER-USER OPPORTUNITYThe well-seasoned tenant mix is all on short term on month to month leases, which creates an immediate repositioning opportunity for an investor or allows the opportunity for an Owner-User Buyer to occupy a portion or all of the building.

STRONG IMMEDIATE DEMOGRAPHICSAverage household income north of $102,000 and over 43,000 people within a 5-mile radius.

EXCELLENT VISIBILITY AND FRONTAGE ALONG VENTURA BOULEVARDOver 300 feet of frontage along Ventura Boulevard and easy access to the 101 Ventura Freeway.

CLOSE PROXIMITY TO PROVIDENCE TARZANA MEDICAL CENTERLocated just 0.3 of a mile from Providence Tarzana Medical Center, the top regional medical center in the San Fernando Valley and a huge economic driver for the San Fernando Valley.

AMENITY RICH LOCATIONNumerous national retailers, restaurants, and entertainment venues in the immediate area, including Starbucks, Gelson’s Supermarket, Coffee Bean & Tea Leaf, Vons, CVS, and Whole Foods.

CENTRALIZED SAN FERNANDO VALLEY LOCATIONClose proximity to prime executive and employee housing, all major freeways, airports, downtown Los Angeles, the West Side and the Warner Center.

IDEAL SUITE SIZESRetail suites average less than 2,000 SF with a majority of the spaces averaging close to 1,000 SF. All second story office spaces are small in size and easily leasable, which protects against downside risk and significant roll-over and tenant improvement costs.

FIRST TIME EVER ON THE MARKETOriente Plaza has been family owned since its construction in 1972. This is the first time the property has been made available for sale.

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Property Address

18330 Ventura Boulevard& 5221 Avenida Oriente

Tarzana CA 91356

Price Request For Offer

Building SF 31,159

Total Land SF 69,472

18330 Ventura Blvd Land SF 26,859

5221 Avenida Oriente Land SF 48,613

Property Type Retail

APN 2161-022-035

Year Built 1972

Zoning C2-1/R1

Type of Ownership Fee simple

PROPERTY OVERVIEW

PHOTO

PROPERTY OVERVIEW

LOCATION18330 Ventura Boulevard & 5221 Avenida OrienteTarzana, CA 91356

SITEThe subject property is located on the southwest corner of Ventura Boulevard and Avenida Oriente, just east of the SE signalized corner of Ventura Blvd and Reseda Blvd

SQUARE FOOTAGESBuilding SF: 31,159 SFLot size: 69,472 SF (1.59 AC) Total18330 Ventura Blvd: 26,859 SF of Land5221 Avenida Oriente: 48,613 SF of Land

PARKING159 total parking spaces; 5.13 per 1,000

YEAR BUILTThe property was built in 1972

ZONING18330 Ventura Blvd: C2-15221 Avenida Oriente: R1

APN18330 Ventura Blvd: 2161-022-0355221 Avenida Oriente: 2161-022-036

TRAFFIC COUNTSIntersection of Ventura Boulevard and Avenida Oriente: approximately 37,520 per day

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FINANCIAL ANALYSIS

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SUITE CURRENT RENT SUITE CURRENT RENT SUITE CURRENT RENT200 $1,925.00 212 $1,345.00 223 $860.00 202 $1,450.00 213 $820.00 224 $1,395.00 203 $875.00 214 $1,385.00 225 $810.00 204 $950.00 215 $810.00 226 $1,425.00 206 $1,900.00 216 $1,395.00 227 $810.00

205/207 $1,650.00 218 $1,395.00 228 $1,360.00 208 $1,395.00 219 $965.00 229 $525.00 209 $810.00 220 $1,415.00 230 $2,400.00 210 $1,385.00 221 $810.00 231 $570.00 211 $810.00 222 $1,350.00 232 $850.00

Office Total SF 15,350(49%) Office Total Rent $35,845.00 $2.67/SF

SECOND STORY OFFICE - ALL LEASES ARE MONTH TO MONTH

OPERATING DATA

Scheduled Lease Income $997,848

NNN Charges $151,783

Effective Gross Income $1,149,631

Expenses $297,614

Parking Income $2,400

Net Operating Income $854,417

EXPENSE BREAKDOWN PER SFTaxes (Projected) $200,000 $6.36 Insurance $11,000 $0.36 Utilities $33,955 $1.08 Trash $8,124 $0.24 Janitorial $6,600 $0.24 Repairs & Maintenance $8,000 $0.24 Management $29,935 3.0%TOTAL $297,614 $9.55/$0.80

GROUND FLOOR RETAILSUITE TENANT SF BLDG % LEASE EXP CURRENT

RENTCURRENT RENT /SF

NNN CHARGES

NNN CHARGES /SF

LEASE TYPE

18332 Golden Age Adult healthcare 5,600 17.97% 10/31/2019 $16,900.00 $3.02 $2,186.92 $0.39 NNN18336 Golden Age 1,500 4.81% 7/31/2020 $4,700.00 $3.13 $584.25 $0.39 NNN18338 Q Health Spa Massage Parlor 1,200 3.85% 7/31/2019 $3,614.00 $3.01 $527.25 $0.44 NNN18342 Hair salon 3,200 10.27% 4/30/2020 $10,587.00 $3.31 $1,719.17 $0.54 NNN18346 Vacant 1,050 3.37% MTM $2,800.00 $2.67 $476.00 $0.45 NNN18348 Vacant 1,000 3.21% MTM $2,800.00 $2.80 $476.00 $0.48 NNN

18350A Hookah lounge 1,100 3.53% 8/31/2022 $3,100.00 $2.82 $516.83 $0.47 NNN18350 Hookah lounge 1,100 3.53% 7/31/2020 $2,808.00 $2.55 $476.00 $0.43 NNN

Retail Total - 15,750 49% $47,309.00 $3.00 $6,962.42 $0.44 -

SQUARE FOOTAGESSF BUILDING % AVERAGE RENT

Retail 15,509 51% $3.00Office 15,350 49% $2.67

Total 31,159 100% $5.67

FINANCIAL ANALYSIS FINANCIAL ANALYSIS

OPERATING DATA

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COMPARABLESANALYSIS

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# ADDRESS SALE PRICE PRICE/SF BLDG SF LAND SF CAP RATE CLOSE OF ESCROW

1Starbucks Drive-Thru19439 Ventura Blvd.Tarzana, CA 91356

$3,600,000 $4,326.92 832 12,632 13.92% 11/28/2017

2 19255 Ventura Blvd.Tarzana, CA 91356 $6,650,000 $635.33 10,467 23,853 4.34% 9/12/2018

3Tarzana Retail19216 Ventura Blvd.Tarzana, CA 91356

$4,155,000 $471.78 8,807 26.027 - 2/13/2018

4 18501-18517 Ventura Blvd.Tarzana, CA 91356 $5,900,000 $672.90 8,768 33,541 - 12/5/2017

5 17007-17015 Ventura Blvd.Encino, CA 91316 $4,000,000 $573.64 6,973 11,247 - 1/30/2018

6Kenterra Center13535 Ventura Blvd.Sherman Oaks, CA 91423

$4,000,000 $800.80 4,995 27,918 - 7/25/2018

AVERAGE $4,717,500 $1,246.90 6807 18,203 - -

SALES COMPARABLES - RETAIL | PRICE/SF

SALES COMPARABLES - RETAIL SALES COMPARABLES - RETAIL

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# ADDRESS SALE PRICE PRICE/SF BLDG SF LAND SF CAP RATE CLOSE OF ESCROW

1 19935 Ventura Blvd.Woodland Hills, CA 91364 $4,950,000 $270.71 18,285 12,197 - 5/1/2018

2Encino Office Plaza17555 Ventura Blvd.Encino, CA 91316

$9,800,000 $297.73 32,916 47,406 5.80% 3/19/2018

3Radius Court17835 Ventura Blvd.Encino, CA 91316

$11,150,000 $245.09 45,308 54,450 - 1/10/2018

4Tarzana Town Place18607 Ventura Blvd.Tarzana, CA 91356

$8,450,000 $206.64 40,892 45,302 4.50% 11/30/2017

5 15450 Ventura Blvd.Sherman Oaks, CA 91403 $2,775,000 $740.20 5,100 9,583 1.25% 1/17/2017

6 13263 Ventura Blvd.Studio City, CA 91604 $4,620,000 $750.12 6,159 9,487 - 10/19/2018

AVERAGE 6,957,500 $418.42 24776.67 29,738 - -

SALES COMPARABLES - OFFICE

SALES COMPARABLES - OFFICE | PRICE/SF

SALES COMPARABLES - OFFICE

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RENT COMPARABLES - RETAIL RENT COMPARABLES - RETAIL# ADDRESS BUILDING SF RENT/SF/YEAR RENT/SF/MONTH LEASE TYPE YEAR BUILT

1 18711-18737 Ventura Blvd.Tarzana, CA 91356 33.002 $24.00 $2.00 NNN 1964

2 18645-18663 Ventura Blvd.Tarzana, CA 91356 45,680 $30.00 $2.50 NNN 1966


4 18543-18545 Ventura Blvd.Tarzana, CA 91356 4,620 $30.60 $2.55 MG 1948


6 18551 Ventura Blvd.Tarzana, CA 91356 3,300 $30.00 $2.50 NNN 1950


8 19307-19327 Ventura Blvd.Tarzana, CA 91356 18,964 $38.40 $3.20 FS 1987



11 18816-18824 Ventura Blvd.Tarzana, CA 91356 4.598 $35.88 $2.99 NNN 1962

12 19531 Ventura Blvd.Tarzana, CA 91356 10,363 $31.20 $2.60 FS 1963

AVERAGE 6,479 $33.68 $2.81 - -

RENT COMPARABLES - RETAIL | PRICE/SF/MONTH

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RENT COMPARABLES - OFFICE

# ADDRESS BUILDING SF RENT/SF/YEAR RENT/SF/MONTH LEASE TYPE YEAR BUILT

1 18840-18850 Ventura Blvd.Tarzana, CA 91356 24,959 $37.80 $3.15 FS 1974

2 5530 Corbin Ave.Tarzana, CA 91356 52,000 $25.20 $2.10 FS 1981

3 18226 Ventura Blvd.Tarzana, CA 91356 15,000 $23.40 $1.95 FS 1991

4 18607 Ventura Blvd.Tarzana, CA 91356 40,892 $30.00 $2.50 NNN 1985

5 19626 Ventura Blvd.Tarzana, CA 91356 21,951 $30.00 $2.50 MG/FS 1989

6 19634 Ventura Blvd.Tarzana, CA 91356 23,828 $27.00 $2.25 Plus All

Utilities 1983

AVERAGE 29,772 $28.90 $2.41 - -

RENT COMPARABLES - OFFICE | PRICE/SF/MONTH

RENT COMPARABLES - OFFICE

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AREAOVERVIEW

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AREA OVERVIEW

TARZANA, CATarzana is a neighborhood in the San Fernando Valley region of the city of Los Angeles, California. Tarzana, which measures 8.79 square miles, is bounded on the south by Topanga State Park, on the east by Encino, on the north by Reseda and on the west by Woodland Hills.

The Tarzana Professional Center is centrally located within Tarzana, in the San Fernando Valley, a main employment hub in the greater Los Angeles region. The Tarzana Professional Center is at the epicenter of one of the most sought after locations in all of Los Angeles, positioning it to attract the area’s top tenants.

Ideally situated directly off the U.S. 101 (Ventura Freeway) Reseda Boulevard on/off ramps at the northeast signalized corner of Reseda Boulevard and Burbank Boulevard, the Tarzana Professional Center has convenient access to all of Los Angeles. Featuring superior visibility from both directions on the Ventura Freeway, the Center is directly across Burbank Boulevard from the Providence Tarzana Medical Center. The Tarzana Professional Center has close proximity to multiple retailers and amenities such as Tarzana Village and Tarzana Square Shopping Center, which houses a Whole Foods Market, Gelson’s Supermarket, and Vons.

The Tarzana Professional Center is ideally located within close proximity to other major employment hubs of the San Fernando Valley, including the “Media Capital of the World,” Burbank, home to NBC, Warner Bros., Walt Disney Studios, and Universal Studios. The center is also located within minutes of the newly constructed Metro Orange Line and all major freeways connecting future tenants to Warner Center, Chatsworth, NoHo Arts District, Hollywood, Downtown Los Angeles, Burbank, Los Angeles International Airport (LAX) and Long Beach.

In 2014, there are 216,599 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 68.18% of employees are employed in white-collar occupations in this geography, and 31.63% are employed in blue-collar occupations. In 2014, unemployment in this area is 8.96%. In 2000, the average time traveled to work was 32.4 minutes.

Sherman Oaks Galleria

PROVIDENCE TARZANA MEDICAL CENTERProvidence Tarzana Medical Center has served a rapidly growing San Fernando Valley community since 1973. The 249-bed hospital is known in the area as a leading source for quality care, delivering babies, providing emergency life-saving care and performing surgeries and other procedures to improve patients’ health. In 2008, Providence Health & Services purchased Tarzana hospital and converted it to a non-profit organization, adding outreach programs to care for the under-served in our community. Providence Tarzana has received numerous awards from leading national healthcare quality rating organizations.

The Emergency Department has been designated by the Los Angeles County Department of Health as a STEMI and stroke receiving center. With teams of highly skilled physicians, nurses and support staff on site, 24 hours a day, seven days a week, the department is notified of incoming ambulances is at the door to receive patients and give them the immediate care required to save their lives. Heart attack patients may also be recipients of therapeutic hypothermia, an innovative technique where cardiac arrest patients are cooled to 92 degrees to help prevent brain damage caused by a loss of blood supply. The Emergency Department is also Emergency Approved for Pediatrics and has been the trusted source for pediatric emergencies for decades.

The tiniest patients in the community are in compassionate caring hands, with the area’s largest Level III Neonatal Intensive Care Unit (NICU) designed to provide highly specialized care for critically ill babies, regardless of birth weight, gestational age or place of birth, and are CCS Certified to perform neonatal surgeries. A high-risk infant follow-up clinic ensures ongoing support to help babies reach developmental milestones. Older children have access to the pediatric department and one of only three Pediatric Intensive Care Units in the Valley.

● Blood Donor Center● Cancer Care● Diabetes Care Center● Emergency Care● Gastrointestinal Services● Heart and Vascular● Orthopedics● Seniors and Beyond

● Imaging● Neonatal care

PROVIDENCE TARZANA MEDICAL CENTER SERVICE

● Tarzana Village

● Tarzana Square Shopping Center

● Westfield Topanga

● The Village at Westfield Topanga

● Northridge Fashion Center

● Sherman Oaks Galleria

NEARBY RETAIL

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AREA OVERVIEWSAN FERNANDO VALLEYAlmost 2.5 million people reside in the San Fernando Valley, which includes the submarkets of Northridge-Northwest San Fernando Valley, Van Nuys-Northeast San Fernando Valley, Woodland Hills, Burbank-Glendale-Pasadena and Sherman Oaks-North Hollywood-Encino. The area’s population is expected to increase by 1.9 percent through 2020, or by 47,400 new residents.

Known for its entertainment industry, the Valley boasts more than 100 soundstages. Entertainment giants calling the Valley home include Walt Disney Co., Universal Studios, Warner Brothers, DreamWorks and Paramount Ranch. The entertainment industry continues to set the area’s economic pulse. Local motion-picture and entertainment companies employ roughly 25,000 people.

While the Valley has grown into the world’s center for entertainment, aerospace giants Boeing and Northrop Grumman and 21st Century Insurance also generate numerous well-paying jobs. Healthcare is also a major source of employment with providers that include Kaiser Permanente and Providence Health & Services. As a result of its large concentration of high-salaries and successful companies, the area’s median household income of$61,600 per year has risen dramatically in recent years.

Although the median home prices dipped during the recession, affordability remains a challenge for much of the local population. High home prices keep the homeownership rate at 50 percent in the San Fernando Valley and provide a large rental base.

SAN FERNANDO VALLEY MAJOR EMPLOYERS

Services 47%Retail Trade 17%Manufacturing 9%Finance, Insurance & Real Estate 8%Wholesale Trade 5%Public Administration 5%Transportation, Communications 5%Construction 5%

SFV SHARE OF TOTAL EMPLOYMENT

SAN FERNANDO VALLEY HIGHLIGHTS● About 2.5 million residents in the San Fernando Valley● Population growth projected of 45,000 new residents by 2019 in the San Fernando Valley● Strong ties to the entertainment industry – Home of Walt Disney Company, Universal Studios, Warner Brothers, DreamWorks and Paramount Ranch● Local motion picture and entertainment companies employ roughly 25,000 people● Aerospace (Boeing & Northrop Grumman) Insurance (21st Century Insurance) and Healthcare (Kaiser Permanente and Providence Health & Services) industries also generate numerous well-paying jobs● Substantial income growth since 2000● Home ownership rate is near 50% and large rental base

Panoramic View of the San Fernando Valley

SAN

TA BA

RBAR

A 80 m

iles

LOS A

NG

ELES 16 miles

LAS VEG

AS 280 m

iles

PALM

SPRING

S 124 Miles

DISTANCE TO:

SAN

DIEG

O 135 m

ilesSAC

RA

MEN

TO 370 m

iles

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Total Population of Tarzana, CA. The median age is 39.

MALE

High School Associates Degree Bachelor’s Degree Grad Degree

FEMALE

177,281

52%48%

27%20% 27% 17%

EDUCATION

$94,449Average HH income within 5-m radius

$60,227Median HH income within 1-m radius

231,295Daytime Population within 5-m radius

79,699Owner Occupied Households

within 5-m radius

85,453Renter Occupied Households

within 5-m radius

460,507Population within a 5-m radius

DEMOGRAPHICS

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OFFERING MEMORANDUM

ORIENTEPLAZA


JUSTIN RAPPELInvestment AssociateNet Leased Properties GroupTel: (818) 212-2732Fax: (818) [email protected]: CA #01908799www.BrandonMichaelsGroup.com

BRANDON MICHAELSSenior Managing Director of InvestmentsSenior Director, National Retail GroupTel: (818) 212-2794Fax: (818) [email protected]: CA #01434685www.BrandonMichaelsGroup.com

oriente plaza retail & office plaza ideally...offering memorandum a 31,159 sf mixed-use retail...

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