17907 an offering for sale from the …...capital markets contacts colliers international is pleased...
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A N O F F E R I N G F O R S A L E F R O M T H E C O L L I E R S W E S T E R N R E G I O N I N D U S T R I A L C A P I T A L M A R K E T S T E A M
ARENTH AVENUE | CITY OF INDUSTRY
17891 & 17901 - 17907LOCAL MARKET CONTACTS
JOHN S. ARCHIBALD Lic. # 00996775Dir +1 626 696 1208 [email protected]
GUILLERMO OLAIZLic. # 01778986Dir +1 626 696 1018 [email protected]
MICHAEL KENDALL Lic. # 01895979 Dir. +1 949 724 5545 [email protected]
PETER LEELic. # 01068883Dir +1 909 612 2626 [email protected]
GIAN BRUNOLic. # 01936831 Dir. +1 949 724 5511 [email protected]
CAPITAL MARKETS CONTACTS
Colliers International is pleased to offer the opportunity to acquire 17891-17907 Arenth Avenue (“The Property”) located in the City of Industry submarket of the San Gabriel Valley. The Property totals 90,518 square feet and is situated on 4.23 acres of land. With 100% current occupancy, The Property also boasts a strong historical occupant base, as the four in-place tenants have demonstrated their dedication to the Property through several renewals, extensions and expansions.
Situated adjacent to SR 60 and approximately 10 miles from the 10/605 Interchange, this investment offering provides an opportunity to acquire product in one of the most desirable industrial markets in the nation at a significant discount to replacement cost. This opportunity is being offered unpriced on an “as-is” basis for the fee interest in the buildings and land thereunder.
EXECUTIVE SUMMARY
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17901 Arenth Ave
5 MILES 10 MILES 20 MILES
INDUSTRY IS A ONE-DAY DRIVE FROM ROUGHLY 36% OF THE U.S. POPULATION
> ACCESS TO FREEWAYS· 60 (1 mile)· 57 (5 miles)· I-10 (5 miles)
> DRIVING DISTANCE TOPORTS OF LA/LB· 35 miles
> DRIVING DISTANCE TOONTARIO INTL AIRPORT· 22 miles
> DRIVING DISTANCE TOLAX· 36 miles
STRATEGICE-COMMERCE
LOCATION
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ARENTH AVENUE | CITY OF INDUSTRY
17891 & 17901 - 17907
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• Rent growth in City of Industry has exceeded expectations from 2014-2019 YTD, averaging nearly 10% annual rent growth during that time.
• In-place rents are almost 30% below market.
• With a weighted average lease term remaining of 1.6 years, 100% of in-place tenancy rolls in years 1-3, providing the potential tosubstantially increase NOI during this timeframe.
• These data points result in a total potential increase of $256,747 in NOI in years 1-3 of the analysis, which translates to $5.1 million in additional value if we apply a 5.00% residual cap rate to this total.
Fiscal Year Ending April NOI Value
2020 $152,902 $3,058,0322022 $76,955 $1,539,0942023 $26,890 $537,806
Totals $256,747 $5,134,932
ANNUAL INCREASE IN NOI AND RESULTING VALUE CREATION
1 Potential To Unlock Incremental Rental Value For Significant Upside
MARKET RENT AT EXPIRATION VS. WEIGHTED AVERAGE CONTRACT RENT AT EXPIRATION [1]
This page is part of a package and is subject to the disclaimer on the Executive Summary.6/24/2019 2:23 PM
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17901-17907 Arenth Ave10-Year Hold Period
EXISTING LEASE EXPIRATIONS[1]
Fiscal Net Rentable Percentage Cumulative Weighted. Average Projected
Year Ending Number Square Feet Square Feet Square Feet Contract Rent Market Rent $ %
September of Suites Expiring Expiring Expiring At Expiration At Expiration Variance Variance
Currently Vacant 0 0 0.00%
2020 2 62,280 68.27% 68.27% $0.55 $0.76 ($0.20) -27.06%
2022 2 21,390 23.45% 91.72% $0.60 $0.90 ($0.30) -33.32%
2023 1 7,550 8.28% 100.00% $0.63 $0.93 ($0.30) -32.02%
Market Rent At Expiration vs. Weighted Average Contract Rent At Expiration [1]
[1] The years in which no existing tenants expire are not reflected on this graph.
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$0.90
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Currently Vacant 2020 2022 2023
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% of Building Expiring Proj. Market Rent at Expiration Wtd. Avg. Expiring Contract Rent
Perc
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[1] The years in which no existing tenants expire are not reflected on this graph.
Incremental NOI
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ADDRESS 17891 Arenth Ave, City of Industry, CA 91748 17901-17907 Arenth Avenue, City of Industry, CA 91748
IMPROVEMENTS 1 Story Industrial Warehouse 1 Story Industrial Warehouse
TOTAL RENTABLE AREA 49,078 SF 42,844 SF
SITE AREA 2.252 AC / 98,108 SF 1.977 AC / 86,123 SF
CLEAR HEIGHT 19"-22" 19' -22"
OFFICE BUILDOUT TBD 10-18%
ACCESS Vehicular access to the property is provided from 1 point of ingress and egress on Arenth Avenue.
Vehicular access to the property is provided from 1 point of ingress and egress on Arenth Avenue.
YEAR BUILT 1973 (20k SF added in 2000) 1979
PARKING RATIO 1.92/1,000 SF (76) 1.92/1,000 SF (76)
PAVING/PARKING Asphalt with concrete staging areas Asphalt
CONSTRUCTION TYPE Concrete Tilt-Up Concrete Tilt-Up
ROOF TYPE Glulam Glulam
LOADING 2 finger docks, 5 GL 1 GL for each unit (17901 has 2 GL) - 5 Total
LIGHTING fluorescent & metal-halide fluorescent
ELECTRICAL POWER 400 AMPS - 3w 800-1,200a/277-480v 3p 4w Heavy
ZONING IDM IDM
APN 8264-006-032 8264-006-033
17891 ARENTH 17901-17907 ARENTH
178
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17891±49,078 SF
17903
17901±12,500 SF
±7,550 SF
17905±7,550 SF
17907±13,640 SF
A R E N T H AV E17891 ARENTH AVETOTAL SF: ± 49,078
17901-17907 ARENTH AVETOTAL SF: ± 41,240 SF
Site Plans
EXPIRATIONS
2020
2022
2023
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ARENTH AVENUE | CITY OF INDUSTRY
17891 & 17901 - 17907
CAPITAL MARKETS CONTACTS
MICHAEL KENDALLLic. # 01895979 Dir. +1 949 724 5545 [email protected]
GIAN BRUNOLic. # 01936831 Dir. +1 949 724 5511 [email protected]
LOCAL MARKET CONTACTS
PETER LEELic. # 01068883Dir +1 909 612 2626 [email protected]
JOHN S. ARCHIBALD Lic. # 00996775Dir +1 626 696 1208 [email protected]
GUILLERMO OLAIZLic. # 01778986Dir +1 626 696 1018 [email protected]