prime industrial portfolio southern california · * pacific business park is 95% leased through...
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PacoimaGranada Hills
Sun Valley La Crescenta-Montrose
Van Nuys
Sherman Oaks
Topanga
Malibu
Calabasas
WoodlandHills
Canoga Park
ChatsworthSimi Valley
Moorpark
ValenciaActon
Castaic
HollywoodNortheast
Los AngelesBeverly Hills
RanchoPalos Verdes
Palos VerdesEstates Lomita
Signal HillRossmoor
San Pedro
Compton
LynwoodWestmont
ViewPark-Windsor
Hills
ManhattanBeach
MarinaDel Rey
Alhambra
San Marino
South ElMonte
Arcadia DuarteMayflower
Village
Glendora
Whittier
South WhittierDowney
Norwalk
La Habra
La PalmaLakewood
Bellflower
Westminster
Cypress
Seal BeachFountain
Valley
Corona
El Cerrito
Norco
Eastvale
Jurupa Valley
Yorba Linda
Villa Park
North Tustin
AnaheimHills
ChinoChino HillsRowland
Heights
La Puente
Valinda
Fullerton
West Covina
Diamond Bar
Covina
Pomona
ClaremontSan Dimas
FontanaBloomington Colton
Highland
Grand Terrace
Muscoy
CrestlineLake
Arrowhead
HesperiaPhelan
Mt Baldy
Pinon Hills
Temecula
Fallbrook
Lake ElsinoreLakelandVillage
Dana Point
Laguna Beach
NewportBeach
Lake Forest
TrabucoCanyon
Silverado
Mission ViejoAliso Viejo
Ladera Ranch Murrieta
Wildomar
Santa CatalinaIsland
Burbank Altadena
Ontario
Woodcrest
Canyon Lake Menifee
Nuevo
Anaheim
PerrisPacific Ocean
Los AngelesSanta Monica
HuntingtonParkInglewood
Torrance
HawthorneGardena
Orange
RanchoCucamonga San Bernardino
Apple Valley
Redlands
San Clemente
Laguna Niguel
Glendale
Santa Clarita
ThousandOaks
East LosAngeles
Pasadena
HuntingtonBeach
Irvine
Riverside
Santa Ana
Long Beach
Moreno Valley
Angeles National Forest
Santa Monica MountainsNational Recreation Area
Chino HillsState Park
Lake Matthews EstelleMountain Reserve
Mt SanAntonio
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INCLUDES 6 HIGHLY FUNCTIONAL PROPERTIES TOTALING 786,671 SFSTRATEGIC INFILL SOUTHERN CALIFORNIA LOCATIONS WITH EXCELLENT ACCESS TO MAJOR FREEWAYS
PRIME INDUSTRIAL PORTFOLIO – SOUTHERN CALIFORNIA
A CBRE NATIONAL PARTNERS INDUSTRIAL INVESTMENT OPPORTUNITY
BEACH DISTRIBUTION CENTERMONTEBELLO, CA
DAHLIA STREETFONTANA, CA
SHOEMAKER BUSINESS PARKSANTA FE SPRINGS, CA
LINCOLN WAYGARDEN GROVE, CA
PACIFIC BUSINESS CENTERALISO VIEJO, CA
SIMI VALLEY – UNION PLACE, SIMI VALLEY, CA
PORT OF LOS ANGELES
LAX AIRPORT
PORT OF LONG BEACH
BURBANKAIRPORT
JOHN WAYNE AIRPORT
*PART OF LARGER NATIONAL PORTFOLIO
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EXECUTIVE SUMMARY
The OfferingCBRE, Inc. is exclusively offering the sale of the Prime Industrial Portfolio – Southern California, a 98% leased 786,671 square foot industrial portfolio located in primary markets. The portfolio consists of 18 buildings in 6 projects located in infill Southern California markets including the Inland Empire West, Orange County, Mid-Counties, Commerce/Vernon and Ventura/San Fernando Valley. The portfolio is leased to quality tenants with an average unit size of 11,741 square feet. The Prime Industrial Portfolio – Southern California represents a unique opportunity to acquire critical mass of industrial product in primary infill markets. The properties are being offered individually or as a portfolio.
The Prime Industrial Portfolio -Southern California is part of a larger Portfolio totaling 3.4 MSF with assets in California, Illinois, Texas and Florida. Please see page 5 for the Portfolio contacts in the other markets.
• Eighteen Highly Functional Industrial Buildings Totaling 786,671 Square Feet• Primary Southern CA Markets: Inland Empire West, Orange County, Mid Counties,
Commerce/Vernon, and Ventura/San Fernando Valley • 98% Leased to 60 Tenants with Staggered Lease Expirations
PRIME INDUSTRIAL PORTFOLIO – WEST COAST
* Pacific Business Park is 95% leased through June.
Property Address SFApprox.Office % Occ.
# of Bldgs/ Units Year Built
DH/GL
Approx.Clear Year 1
Pacific Business Center 8, 28, 36, 66, 72, 92 Argonaut, Aliso Viejo, CA 99,459 60% 95%* 6/43 1988 0/37 14’ $819,682Lincoln Way 7321-7441, Lincoln Way, Garden Grove, CA 122,764 81% 94% 3/7 1983 4/8 16’ $1,144,734Simi Valley – Union Place 2121 & 2175, Union Place, Simi Valley, CA 59,248 15% 100% 2/2 1984-1987 2/6 18’-22’ $376,701Shoemaker Business Park 10600-10618, Shoemaker Ave., Santa Fe Springs, CA 92,719 11% 100% 4/10 1988-1989 9/11 24’ $507,482Dahlia Street 13201, Dahlia Street, Fontana, CA 278,560 2% 100% 1/1 1989 59/4 30’ $1,043,568Beach Distribution Center 1520-1608, Beach Street, Montebello, CA 133,921 11% 100% 2/4 1987 16/6 21-26’ $617,799TOTAL 786,671 25% 98% 18/67 1983-1989 101/69 14’-30’ $4,509,966
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Executive Summary
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Property HighlightsCritical Mass in Primary Southern California Markets – The portfolio offers investors the rare opportunity to acquire a critical mass of industrial product in primary Southern California markets. Totaling 786,671 square feet in 18 buildings, the Prime Industrial Portfolio – Southern California offers investors the ability to grow their portfolio in 5 strategic infill markets.
Single and Multi-Tenant Buildings –The Portfolio consists of single tenant and multi-tenant distribution, warehouse and light industrial buildings offering investors diversification in the industrial sector.
98% Leased to Quality Tenants- The portfolio is 98% leased to approximately 60 tenants ranging in sizes from ±1,000 square feet up to ±280,000 square feet offering investors a diverse tenant mix. The average tenant size is 11,741 square feet with an average lease term of 3.02 years remaining.
Below Replacement Cost – Scarcity of land, increasing construction costs and a competitive development environment creates high barriers for new development in Southern California. This portfolio provides investors with the opportunity to acquire highly functional industrial assets in key markets at pricing below replacement cost.
Location Highlights • Inland Empire West – 13201 Dahlia Street is located in the Inland Empire
West in the City of Fontana. The property is located approximately 2.5 miles from the I-10/I-15 interchange, 6.4 miles from the Ontario International Airport and 61 miles from the Ports of LA/LB.
• Commerce/Vernon – Beach Distribution Center is located in Central Los Angeles submarket of Commerce/Vernon in the City of Montebello. The park is ideally located to service the greater Los Angeles Basin located less than 4 miles from I-5, I-605 and I-710, and 26 miles from Los Angeles International Airport and Ports of LA/LB
• Mid Counties - Shoemaker Business Park is located in the Mid Counties in the City of Santa Fe Springs. Santa Fe Springs is situated at the center the LA Basin and is within 2.5 miles of I-5 and I-605, 6 miles from the Central Los Angeles Business District, 21 miles to the Los Angeles International Airport and 24 miles to the Ports of LA/LB.
• Orange County – The Lincoln Way assets are located in West Orange County in the City of Garden Grove. The properties are approximately 2 miles from CA State Route 22, 4 miles from I-405, 5 miles from I-605 and 16 miles from John Wayne International Airport.
The Aliso Viejo properties are located in South Orange County in the City of Aliso Viejo. The properties are strategically located less than 3 miles from I-5 and CA State Route 73 and approximately 13 miles from the John Wayne International Airport.
• Ventura/San Fernando Valley – 2175 and 2121 Union Place are located in Ventura County/Greater San Fernando Valley in the City of Simi Valley. The properties are within one mile from CA State Route 118, approximately 5 miles of CA State Route 23 and within 10 miles of U.S., Route 101. Simi Valley is approximately 40 miles from the Business District in Downtown Los Angeles.
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Market BaseQ1 2015 Vacancy Rate
2014 Total Net Absorption
2014 Total Gross Activity
Q1 2015 Net Absorption
Q1 2015 Gross Activity
Inland Empire 441,986,528 4.1% 16,100,244 33,425,380 4,130,917 9,944,599Commerce/Vernon 160,382,952 1.7% 1,801,182 9,209,864 -126,527 1,606,224Orange County 253,661,243 2.4% 921,827 10,330,254 690,726 2,704,118Mid-Counties 133,575,557 1.4% 1,067,630 8,937,356 1,110,240 2,446,395Ventura/SFV 235,008,653 2.0% 369,993 7,688,823 254,901 1,669,112
Market Highlights
Inland Empire, CA – The Inland Empire is a first tier industrial market with low vacancy, limited available land, sustained economic and population growth and steady tenant demand. The Inland Empire industrial submarket, with a base of 441 million SF, ended the first quarter of 2015 with a 4.1% vacancy rate. In 2014, the overall Inland Empire industrial market generated approximately 16.1 M SF of net absorption and 33.4 M SF of gross activity.
Commerce/Vernon –The Commerce/Vernon submarket is one of the most desirable in-fill industrial markets in Southern California and continues to demonstrate its strong market dynamics. With a base of approximately 160 million square feet, the industrial submarket recorded 9.2 million square feet of gross activity in 2014 and is off to a strong start with 1.6 million square feet of gross activity in the first quarter of 2015. The vacancy rate currently stands at a very low rate of 1.7%.
Mid-Counties - The Mid-Counties industrial market realized the highest level of gross absorption in ten years in 2014 at 8.9 MSF. The market ended the first quarter of 2015 with a 1.4% vacancy rate, well below the national average and down from 3.1% in 4Q2013. The vacancy rate in this market never reached 5%, even in the depth of the most recent recession.
Orange County- The Orange County industrial market is experiencing the lowest vacancy rate in several years across all industrial product types. With a total base of approximately 250 million square feet, a vacancy rate of 2.4% and very limited new construction, the Orange County market is favorably positioned for significant rental growth.
Ventura/San Fernando Valley – With one of the lowest vacancy rates in the country at 1.4%, the greater San Fernando Valley has the second highest average asking rental rate in the Los Angeles Basin. With a base of approximately 235 million square feet (Ventura & SFV) and less than 350,000 square feet under construction, the market will continue to experience low vacancy and healthy rental rate growth. The Ventura submarket is known for its excellent quality-of-life, safety, and talented and diverse labor pool.
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Executive Summary
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REGIONAL MAP
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PacoimaGranada Hills
Sun Valley La Crescenta-Montrose
Van Nuys
Sherman Oaks
Topanga
Malibu
Calabasas
WoodlandHills
Canoga Park
ChatsworthSimi Valley
Moorpark
ValenciaActon
Castaic
HollywoodNortheast
Los AngelesBeverly Hills
RanchoPalos Verdes
Palos VerdesEstates Lomita
Signal HillRossmoor
San Pedro
Compton
LynwoodWestmont
ViewPark-Windsor
Hills
ManhattanBeach
MarinaDel Rey
Alhambra
San Marino
South ElMonte
Arcadia DuarteMayflower
Village
Glendora
Whittier
South WhittierDowney
Norwalk
La Habra
La PalmaLakewood
Bellflower
Westminster
Cypress
Seal BeachFountain
Valley
Corona
El Cerrito
Norco
Eastvale
Jurupa Valley
Yorba Linda
Villa Park
North Tustin
AnaheimHills
ChinoChino HillsRowland
Heights
La Puente
Valinda
Fullerton
West Covina
Diamond Bar
Covina
Pomona
ClaremontSan Dimas
FontanaBloomington Colton
Highland
Grand Terrace
Muscoy
CrestlineLake
Arrowhead
HesperiaPhelan
Mt Baldy
Pinon Hills
Temecula
Fallbrook
Lake ElsinoreLakelandVillage
Dana Point
Laguna Beach
NewportBeach
Lake Forest
TrabucoCanyon
Silverado
Mission ViejoAliso Viejo
Ladera Ranch Murrieta
Wildomar
Santa CatalinaIsland
Burbank Altadena
Ontario
Woodcrest
Canyon Lake Menifee
Nuevo
Anaheim
PerrisPacific Ocean
Los AngelesSanta Monica
HuntingtonParkInglewood
Torrance
HawthorneGardena
Orange
RanchoCucamonga San Bernardino
Apple Valley
Redlands
San Clemente
Laguna Niguel
Glendale
Santa Clarita
ThousandOaks
East LosAngeles
Pasadena
HuntingtonBeach
Irvine
Riverside
Santa Ana
Long Beach
Moreno Valley
Angeles National Forest
Santa Monica MountainsNational Recreation Area
Chino HillsState Park
Lake Matthews EstelleMountain Reserve
Mt SanAntonio
BEACH DISTRIBUTION CENTERMONTEBELLO, CA
DAHLIA STREETFONTANA, CA
SHOEMAKER BUSINESS PARKSANTA FE SPRINGS, CA
LINCOLN WAYGARDEN GROVE, CA
PACIFIC BUSINESS CENTERALISO VIEJO, CA
SIMI VALLEY – UNION PLACE, SIMI VALLEY, CA
PORT OF LOS ANGELES
LAX AIRPORT
PORT OF LONG BEACH
BURBANKAIRPORT
JOHN WAYNE AIRPORT
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PRIME INDUSTRIAL PORTFOLIO - Portfolio Contacts
The Prime Industrial Portfolio -Southern California is part of a larger Portfolio totaling 3.4 MSF with assets in California, Illinois, Texas and Florida. Below please find a summary of the Portfolio as well as the contacts for each market.
PRIME INDUSTRIAL PORTFOLIO - CHICAGOProperty City Total Square Feet In-Place Occ. Portfolio Contacts
1 700 - 800 Albion Avenue Schaumburg 260,251 SF 100.00% Mike CaprileVice Chairman630.573.7071
Ted StaszakSenior Vice President
2 3501 Mount Prospect Raod Franklin Park 362,600 SF 100.00%3 250 North Mannheim Road Hillside 184,860 SF 90.73%4 5700 McDermott Drive Melrose Park 46,180 SF 100.00%5 4700 - 4800 Proviso Drive Melrose Park 619,039 SF 100.00%6 5000 Proviso Drive Melrose Park 509,640 SF 100.00%7 5200 Proviso Drive Melrose Park 12,580 SF 100.00%
TOTAL Chicago (7) 1,995,150 SF 99.14%
PRIME INDUSTRIAL PORTFOLIO - MIAMIProperty City Total Square Feet In-Place Occ. Portfolio Contacts
8 Webster Park Miami 164,000 SF 90.24% Chris RileyVice Chairman404.923.1541
Frank FallonVice Chairman404.923.1547
9 Miami International Trade Center Miami 154,552 SF 84.75%
TOTAL Miami (2) 318,552 SF 87.58%
PRIME INDUSTRIAL PORTFOLIO - DALLASProperty City Total Square Feet In-Place Occ. Portfolio Contacts
10 Grissom Lane Dallas 56,677 SF 100.00% Jack FrakerVice Chairman214.979.6300
Josh McArtorExecutive Vice President
11 Commercial Center Arlington 46,988 SF 95.01%12 GSW 106 Arlington 44,712 SF 100.00%13 GSW 201 Arlington 45,368 SF 100.00%14 Inwood Business Park Dallas 127,520 SF 95.03%
TOTAL Dallas (5) 321,265 SF 97.30%
PRIME INDUSTRIAL PORTFOLIO - SOUTHERN CALIFORNIA Property City Total Square Feet In-Place Occ. Portfolio Contacts
15 Pacific Park Business Center Aliso Viejo 99,459 SF 95.46%* Darla LongoVice Chairman909.418.2105
Barbara EmmonsVice Chairman213.613.3033
16 Lincoln Way Garden Grove 122,764 SF 93.55%17 Simi Valley - Union Place Simi Valley 59,248 SF 100.00%18 Shoemaker Business Park Santa Fe Springs 92,719 SF 100.00%19 Dahlia Street Fontana 278,560 SF 100.00%20 Beach Distribution Center Montebello 133,921 SF 100.00%
TOTAL Southern California (6) 786,761 SF 98.42%*
TOTAL PORTFOLIO (20) 3,421,728 SF 97.73%*
* Pacific Business Park is 95% leased through June.
Offering integrated real estate capital markets solutions from strategy to execution—delivered by a seamless national partnership
www.cbre.com/np
© 2014 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. 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.
NORTHEASTMichael D. HinesRobert FaheyLizann McGowanBrian FiumaraJerome KranzelBrad Ruppel
SOUTHEASTChris RileyFrank FallonBrian BudnickJennifer Klingler
SOUTH CENTRALJack FrakerJosh McArtorJonathan BryanHeather McClainRyan Thornton
WESTDarla LongoBarbara EmmonsRebecca PerlmutterMichael KendallAndrew BrinerGina Christen
DEBT & STRUCTUREDFINANCEVal AchtemeierBrett Green
NORTH CENTRALMike CaprileTed StaszakStephanie Park
DEBT & STRUCTUREDFINANCESteve RothSteve Kundert
CAPITAL MARKETS EXPERTS DEBT & STRUCTURED FINANCE
Val AchtemeierExecutive Vice PresidentLic. 01868169+1 213 613 [email protected] South Hope St.Los Angeles, CA 90071
Andrew Briner, CCIMFirst Vice PresidentLic. 01821872+1 909 418 [email protected] Inland Empire Blvd., Suite 100Ontario, CA 91764
Darla LongoVice Chairman/Managing DirectorLic. 00639911+1 909 418 2105 [email protected] Inland Empire Blvd., Suite 100Ontario, CA 91764
Rebecca Perlmutter Finkel, CFAVice PresidentLic. 01838624+1 310 922 [email protected] California St., 44th FloorSan Francisco, CA 94111
Barbara EmmonsVice ChairmanLic. 00969169+1 213 613 [email protected] South Hope St. 25th FloorLos Angeles, CA 90071
Michael KendallSenior Vice PresidentLic. 01895979+1 909 418 2034 [email protected] Inland Empire Blvd., Suite 100Ontario, CA 91764