9750-70 san fernando r0ad...property highlights functional buildings in dense infill market » four...
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A CBRE NATIONAL PARTNERS INDUSTRIAL INVESTMENT OPPORTUNITY
» SINGLE TENANT NET LEASE | FUNCTIONAL INDUSTRIAL BUILDINGS ON 2.69 ACRES » VALUE-ADD OPPORTUNITY / INDUSTRIAL REDEVELOPMENT
S U N V A L L E Y, C A L I F O R N I A
9750-70 SAN FERNANDO R0AD
SAN FERNANDO ROAD
210
THE OFFERING
With low building coverage, the site provides investors a unique, value-add redevelopment opportunity in the future. The property could accommodate a new ±50,000 SF Class A industrial facility with ample parking and a generous truck court.
The property is strategically located in the San Fernando Valley, one of the most stable submarkets in the Los Angeles Basin. In the third quarter of 2018, the submarket had 858,410 SF of gross activity and posted an extremely low vacancy rate of just 1.4%. The prime location includes excellent access to several major interstates, rail lines and international airports.
CBRE, Inc. is pleased to offer an excellent opportunity to acquire 9750-70 San Fernando Road, four high-quality industrial buildings, totaling 35,624 square feet situated on 2.69 acres of land in the highly desirable San Fernando Valley. The buildings offer attractive features including ample parking and a large storage yard. The buildings are 100% leased to L & W Supply Corporation, a leading specialty supplier of building materials, through May 2024. The property is being offered at a price of $7.9M or $67.4 PLSF, which equates to a 5.25% year one cap rate.
OFFERING SUMMARY » Four functional steel industrial buildings totaling 35,624 SF with a large
storage yard » Future value-add redevelopment opportunity » Attractive yield throughout term with a purchase price equating to land
value » 100% leased to L & W Supply Corporation, a 24-year tenant of the
property, through May 2024 » Strategically located in the highly desirable San Fernando Valley with
excellent access to several major freeways and international airports » Strong market dynamics with a low 1.4% vacancy rate in the Greater
San Fernando Valley and an even lower 1.0% vacancy in the East San Fernando Valley
» M2 Industrial zoning provides flexibility and permits diverse industrial uses for the property
PRICING SUMMARY
ASKING PRICE $7,900,000
ASKING PRICE PLSF $67.4
YEAR ONE CAP RATE 5.25%
ALL CASH IRR 8.55%
YEAR ONE NOI* $414,754
PROPERTY SUMMARY
ADDRESS 9750-70 San Fernando RoadSun Valley, CA 91352
SQUARE FOOTAGE 35,624 SF
ACRES 2.69 AC
COVERAGE 30%
OCCUPANCY 100%
OFFICE SF/% 6,633 SF / 19%
# OF BUILDINGS 4
YEAR BUILT 1952
* Note, Year 1 NOI includes a total bridge rent credit of $24,034 for the first month of the analysis.
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PROPERTY HIGHLIGHTS
Functional Buildings in Dense Infill Market » Four functional steel industrial buildings, totaling 35,624 SF.
» Features include 13’-22’ clearance and abundant trailer parking.
» Large yard makes it ideal for outside storage of heavy materials.
» Recent improvements underway including asphalt grind and overlay, sealcoat and striping of the parking lot.
Strong Redevelopment Potential » Low site coverage, infill location and lack of new functional product in
the market makes this site perfect for redevelopment.
» The rectangular site allows for efficient future building layout in the 50,000 SF range.
TENANCY HIGHLIGHTS100% Leased to L & W Supply Corporation » L & W Supply Corporation has been in the facility for 24 years and
recently extended their lease until May 2024.
» The company is a leading distributor of top quality building materials and specialty products in the United States.
» This location is utilized for the production and distribution of drywall, ceiling systems, steel framing and other building materials used by commercial and residential contractors.
LOCATION HIGHLIGHTS
Strategically Situated in Prime Distribution Location » Excellent location in an infill market with access to exceptional labor supply.
» Immediate access to I-5, I-210, I-405, as well as SR-170, SR-118 and US Route 101 and less than a mile from the I-5/SR-118 interchange.
» Strategically located less than six miles from the Burbank International Airport, and 35 miles from the Los Angeles International Airport.
» Sun Valley’s proximity to the Burbank/Glendale area and the studios and entertainment companies is a competitive advantage. The East Valley has always had stronger absorption with the influence of the studios and entertainment firms.
Quality Corporate Neighbors » The property is surrounded by several corporate users, including FedEx Home
Delivery, FedEx Ground, Warner Bros., Hawker Pacific, Timely Industries, Yellow Freight, HAECO Aviation, Bimbo Bakery, Vulcan Materials Company and the Los Angeles Department of Water and Power.
THE OFFERING
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MARKET HIGHLIGHTS
Strong Market Dynamics » The San Fernando Valley remains a tight market with limited
supply. In the third quarter of 2018, the submarket posted a vacancy rate of just 1.4%, the lowest in the Los Angeles region.
» Historically during the market downturns, the Valley has remained the most stable submarket in terms of vacancy, rental rates and tenant concessions. Driven by the fact that most companies are in the Valley because of the available labor and proximity to housing, there is less market volatility.
» The overall Los Angeles industrial market is extremely strong, and the vacancy rate was 1.4% as of Q3 2018. The vacancy rate has remained below 3% for the last 6 years, resulting in steadily rising rents.
» With a base of over 1.0 billion SF, the Greater Los Angeles market generated over 7.07 million SF of gross activity and over 725,218 SF of net absorption in Q3 2018, an increase of 2.5% from the previous quarter.
High Barriers to Entry » There is very limited land and investment product available in
the market, creating barriers to entry for investors.
» Lack of available land and high replacement costs make for extremely limited opportunities for competitive developments.
» Land values in the Valley are $65-$70 PSF and many industrial sites are being converted to other uses.
THE OFFERING
17 SAN FERNANDO BUSINESS CENTER
1.4%SAN FERNANDO VALLEY
VACANCY RATE
SAN FERNANDO VALLEY VACANCY RATE
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
02008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
MARKETING STRATEGY/CRAFTING THE STORYSTEADY DEMAND & LIMITED SUPPLY OF BUILDINGS IN THIS SIZE RANGE
0.9%SAN FERNANDO VACANCY
50,000-150,000 SF
$0.85AVERAGE ASKING
LEASE RATE
4.4%ANNUAL RENT GROWTH
SINCE 2010
» The San Fernando Valley is a very stable submarket of Los Angeles in terms of vacancy, rental rates and tenant concessions.
» Since 2010, San Fernando Valley rents have grown by 35%, or approximately 4.4% annually.
» Demand continues to be very strong for the overall market and in this size range - 84 deals completed in the 50,000-150,000 SF range since 2012.
» Lack of available land makes for extremely limited opportunities for future competitive developments.
Over the last 10 years, the vacancy rate has remained below 4%!
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REGIONAL MAP
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PerrisReservoir
Santa AnaRiver
Lake Mathews
ChatsworthNorthridge
CanyonCountrySaugus
Valencia
Canoga Park
WoodlandHills
Calabasas
Topanga
Simi Valley
ThousandOaks
Malibu
Santa Clarita
Van Nuys
Sherman Oaks Glendale
Sylmar
Pacoima
Acton
Granada Hills
Hollywood
HollywoodHills San Marino
San GabrielBeverly Hills
Santa Monica ViewPark-Windsor
HillsInglewood
MarinaDel Rey
East LosAngeles
NortheastLos Angeles
Torrance
Palos VerdesEstates
RanchoPalos Verdes San Pedro
Compton
LynwoodHawthorne
Westmont
GardenaManhattanBeach
West Covina
Valinda
La Puente
Bonita
San Dimas
Glendora
El Monte
HuntingtonPark
DowneySouth Whittier
Whittier
NorwalkBell�ower
La Habra
Valle LindoRowlandHeights
La Palma
RossmoorSignal Hill
Bixby Knolls
Harbor
Lakewood
Westminster
Cypress
Seal Beach
Orange
Villa Park
North Tustin
Corona
El Cerrito
Woodcrest
Norco
Eastvale
Jurupa Valley
Yorba Linda
Anaheim Hills
ChinoChino Hills
Fullerton
Citrus
Covina
Pomona
ClaremontRancho
Cucamonga Fontana
Bloomington
San Bernardino
Colton
LakeArrowhead
HesperiaPhelanPinon Hills
Mt Baldy Crestline
Muscoy
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Lake ElsinoreCanyon Lake
LakelandVillage
Ladera RanchLaguna Beach
NewportBeach
Lake Forest
TrabucoCanyon
Silverado
Mission Viejo
Aliso ViejoMurrieta
Wildomar
Burbank
Pasadena
Altadena
La Crescenta-Montrose
Sierra Madre
Arcadia
Ontario
HuntingtonBeach
FountainValley
Irvine
Riverside
Anaheim
Santa Ana
Long Beach
Moreno Valley
PerrisNuevo
Sun City
Menifee
Diamond Bar
Angeles National Forest
Mt SanAntonio
Chino Hills State Park
Lake Matthews EstelleMountain Reserve
Santa Monica MountainsNational Recreation Area
Los Angeles
9750-70 SAN FERNANDO ROAD
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LOCAL MAP
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Nordhoff StSt North Hills
Van Nuys Blvd
Parthenia St
Roscoe BlvdRoscoe Blvd
Sepulveda BlvdSepulveda Blvd
N Clybourn Ave
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Webb Ave
Laurel Canyon Blvd
Strathern St
Hubbard St
Sunland Blvd
Vineland Ave
4th St5th St
Glenoaks Blvd
Glenoaks Blvd
Glenoaks Blvd
Glenoaks BlvdN Kenneth Rd
Truman St
Arroyo
Ave
Vaughn St
Foothill Fwy
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Golden State Fwy
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Hollywood Fwy
Oro Vista Ave
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San Fernando Rd
Verdugo Mountain ParkLa Tuna Canyon Park
Hansen DamRecreation Center
Mission Hills
San Fernando
Shadow Hills
Lake ViewTerrace
Pacoima
Sun Valley
Bob Hope Airport
Whiteman Airport
Van NuysAirport (VNY)
9750-70 SAN FERNANDO ROAD
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AERIAL
SAN FERNANDO ROAD
SAN FERNANDO MARBLE & GRANITE
QUIXOTE STUDIOS
MOLE RICHARDSONLINE 204
WHITEMAN AIRPORT
COSMETICENTERPRISES
ZERRANHAIRCARE
SANTA CLARITASTUDIOS
MORPHECOSMETICS
HAECO
ATHENS WASTE
DIRECTV
FEDEX
SCENIC EXPRESSIONS
COUNTY OF LOS ANGELES
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SITE PLAN
SAN FERNANDO ROADSAN FERNANDO ROAD
BRAN
FORD
STRE
ETBR
ANFO
RD ST
REET
LEGEND
GRADE LEVEL DOORS
DOCK-HIGH DOORS
OFFICE SPACE50
ʼ50ʼ
67ʼ
380ʼ
175ʼ
40ʼ
140ʼ
L & W Supply CorporationExp. May 2024
35,624 SF on 117,176 SF of land
9 7 5 0 - 7 0 S A N F E R N A N D O R O A D 7
© 2019 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. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this docu-ment are the property of their respective owners.
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