multi-tenant professional office building | +15,421 sf · horizon solar power has served as a...

EXCLUSIVE OFFERING MEMORANDUM

1 4 3 3 5 H E S P E R I A R D , V I C T O R V I L L E , C A L I F O R N I A 9 2 3 9 5MULTI-TENANT PROFESSIONAL OFFICE BUILDING | +15,421 SF

@KurschGroup#KurschGroupCRE

The information contained in the following marketing document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kursch Group and should not be made available to any other person or entity without the written consent of Kursch Group. This marketing brochure has been prepared to provide summary, unverified information to prospective buyers and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kursch Group has not made any investigation and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, or the compliance with State and Federal Regulations.

The information contained in this marketing document has been obtained from sources we believe to be reliable; however, Kursch Group has not verified and will not verify, any of the information contained herein, nor has Kursch Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein and have satisfied themselves to anything that may affect the site prior to consummating a transaction.

760.983.2591 • [email protected] #01358790 Corporate BRE #01896143

12180 Ridgecrest Rd, Suite 232, Victorville, CA 92395760.983.2383 • [email protected] • KurschGroup.com

R O B K U RT HE X E C U T I V E V I C E P R E S I D E N T

760.983.2598 • [email protected] #01887228 Corporate BRE #01896143

12180 Ridgecrest Rd, Suite 232, Victorville, CA 92395760.983.2383 • [email protected] • KurschGroup.com

T O N Y S C A F I D IA S S O C I A T E

01SITE SUMMARY 14335 HESPERIA RD, VICTORVILLE, CA

SITE SUMMARY

PROPERTY PHOTOS

FLOOR PLAN

05MAPS 1,3,5 MILE RADIUS DEMOGRAPHICS

AERIAL

07FINANCIALS FINANCIAL ANALYSIS

REPLACEMENT COSTS

RENT ROLL

COMPARABLE ANALYSIS

12OVERVIEWSTENANT OVERVIEW

CITY OF VICTORVILLE

SAN BERNARDINO COUNTY

KURSCH GROUP WWW.KURSCHGROUP.COM

14335 HESPERIA RD, VICTORVILLE, CA

INLAND EMPIRE NORTH01 02INLAND EMPIRE NORTH KURSCH GROUPWWW.KURSCHGROUP.COM

ADDRESS Hesperia Plaza14335 Hesperia RdVictorville CA, 92395

ASSESSOR’S PARCEL NUMBER 0477-222-26

PROPERTY OVERVIEWHesperia Plaza is a single-story multi-tenant commercial building in great condition located in the city of Victorville on Hesperia Rd, just minutes away from the Victor Valley Global Medical Center, and access to all other major aterials, I-15, Hwy 18 and other convieniences. Totaling ±15,878 SF, the building is divided into 16 suites and is optimal for a multitude of office and retail uses.

LOCATIONThis site fronts Hesperia Rd, the major arterial for Hesperia & Victorville, CA . Situated just a few blocks east of Hesperia Rd and ±4.2 miles from the I-15 Fwy. MUNICIPALITY City of Victorville | County of San Bernardino

SITE SUMMARYBUILDING SIZE ±15,878 Sq. Ft.

SUITE 101 ±1,965 SF - Lil’ Bit Country Cafe

SUITE 102 ±948 SF - Lil’ Bit Country Cafe

SUITE 103 ±958 SF - Available for Lease

SUITE 104 ±1,235 SF - Chela’s y Carnitas & Rainbow Desserts


SUITE 106/107 ±1,564 SF - Available for Lease

SUITE 108 ±816 SF - Horizon Solar Power

SUITE 109 ±748 SF - Farmers Insurance


SUITE 111 ±748 SF - Church

SUITE 112 ±1,365 SF - Church


SUITE 114 ±830 SF - EC Seminars


SUITE 116 ±1,020 SF - TODEC Legal Services

ZONING Neighborhood Commercial (C-1)

YEAR BUILT 1983

CONSTRUCTION Metal/Steel

LOT SIZE ±1.55 AC (±67,441 Sq. Ft.)

PARKING 77 stalls

UTILITIESElectric Southern California EdisonGas Southwest Gas CompanySewer City of VictorvilleWater City of Victorville

LEASE TYPE NNN

ASKING PRICE:

$1,395,000 SALE SITE SUMMARY




PROPERTY PHOTOS

FLOOR PLAN




NORTH WEST AERIAL

1, 3, 5 MILES RADIUS DEMOGRAPHICS

The High Desert Market is located 90 miles northeast of Los Angeles and encompasses the cities of Adelanto, Apple Valley, Barstow, Hesperia, Victorville and surrounding unincorporated areas of San Bernardino County. The regional population exceeds 443,000, nearly doubling from census data of 2000 to 2010. In fact, the city of Victorville was ranked the 6th fastest growing city in the United States for 2006!

POPULATION

160,000

120,000

80,000

40,000

05 miles3 miles1 mile

166,344158,310

77,08273,385

9,2628,844

2018 Total Population 2023 Total Population

Household Incomes

40,00020,0000

5 miles

3 miles

1 mile

48,76850,957

23,35824,361

2,8462,962

2018 All Household Incomes 2023 All Household Incomes

Households

40,00020,0000

5 miles

3 miles

1 mile

48,76650,958

23,35824,361

2,8462,962

2023 Total Households2018 Total Households

2018 Median Age

30

20

10

05 miles3 miles1 mile

323231

3 miles 5 miles1 mile

Interstate 15 bisects the region and Highway 395, Highway 18, Highway 138, Route 66 and Highway 58 all converge here. BNSF Railway runs throughout most of the high desert cities, hauling massive volumes of imported goods from the Ports of LA and Long Beach to the rest of the country.



INLAND EMPIRE NORTH07

FINANCIAL ANALYSIS

ANNUAL EXPENSESInsurance $7,269.96Real Estate Prop Taxes $17,686.20Repairs & Maintenance $4,620.00Management Fee $2,291.76Trash $1,744.08Utilities $9,733.44

TOTAL EXPENSES $43,345.44

CAM Offset $20,250.00 63%

NET TOTAL EXPENSES $23,095.44

ANNUAL INCOME - REFER TO RENT ROLL FOR TENANT BREAKDOWNQTY BASE RENT NOTES

Number of Units 16 $137,381.46 Total Potential (Estimated)

Occupied 9 $86,191.92 Annual Base Rent (CAM not included)Vacant 7 ($51,189.54) Total Vacancy Factor (Estimated Calc)

TOTAL INCOME $86,191.92 TOTAL ANNUAL INCOME AS OF OCT.2018

FINANCIAL ANALYSIS

SALE FACTORSTOTAL MONTHLY INCOME $ 7,182.66TOTAL MONTHLY EXPENSE $ 1,924.62VACANCY FACTOR 37%

Annual Gross Income (full occupancy) Est. $ 137,381.46Annual Gross Income (current occupancy) $ 86,191.92Annual Gross Expense $ 23,095.44

NOI (FULL OCCUPANCY) $ 137,381.46 CAM fees cover all expenses

NOI (CURRENT OCCUPANCY) $ 63,096.48

08INLAND EMPIRE NORTH KURSCH GROUPWWW.KURSCHGROUP.COM

Opportunity exists for additional value add infusion with100% occupancy.

NOI at full occupancy is estimated to increase by $74,285 with near to all 100% expenses covered.


INLAND EMPIRE NORTH 10INLAND EMPIRE NORTH KURSCH GROUPWWW.KURSCHGROUP.COM

14335 HESPERIA RD, VICTORVILLE, CA14335 HESPERIA RD, VICTORVILLE, CA

RENT ROLLSUITE TENANT SQ FT RENT/MON $/SF TOTAL CAM %

101 Lil’ Bit Country Cafe 1965 $ 2,900.00 $ 1.00 13%102 Lil’ Bit Country Cafe 948 6%103 Vacant 958 6%104 Chela’s Y Carnitas and Rainbow Desserts 1235 $ 786.25 $ 0.64 $ 0.25 8%105 Vacant 748 5%106 VACANT 816 5%

107 VACANT 748 5%

108 Horizon Solar Power Co 816 $ 612.00 $ 0.75 $ 0.25 5%109 Farmers Insurance 748 $ 448.80 $ 0.60 $ 0.25 5%110 Vacant 816 5%111 Church 748 $ 1,172.61 $ 0.55 $ 0.25 5%112 Church 1365 9%113 Vacant 830 5%114 EC Seminars LLC 830 $ 498.00 $ 0.60 $ 0.25 5%115 Vacant 830 5%116 TODEC 1020 $ 765.00 $ 0.75 $ 0.25 7%

$ 7,182.66 $ 1,687.50 100%

Occupied RSF 9675 63%

Vacant RSF 5746 37%

100%

09

REPLACEMENT COSTS

HARD COSTS Land Aquisition Costs est. @ $ 2.15 $ 144,998.15Hard Cost est. @ $ 128.00 $ 2,032,384.00TI’s on Office SF est. @ 10,320 SF $ 65.00 $ 670,800.00TI’s on Retail SF est. @ 5,558 SF $ 85.00 $ 472,430.00

Total Hard Costs $ 3,320,612.15 80%

LAND SIZE 67,441 SFBUILDING SIZE 15,878 SF

SOFT COSTS

Total Soft Costs $ 830,153.04 20%

Total Costs $ 4,150,765.19 100%

Cost Per Square Foot $ 261.42

ECONOMIC RENT CALCULATION Replacement Costs $ 261.42

Required Return 10.0% $ 26.14Operating Expenses $ -

Less Vacancy/Credit 9.85% $ 2.57

Economic rent Requied, PSF per year

(NNN) $ 28.72Economic Rent Required, PSF per

month (NNN)$ 2.39



INLAND EMPIRE NORTH


COMPARABLES ANALYSIS

ADDRESS 11326 Bartlett Ave 15776 Main St 16330 Walnut St 18838 US Hwy 18 14335 Hesperia Rd

CITY Adelanto Hesperia Hesperia Apple Valley Victorville

ZIP 92301 92345 92345 92307 92395

APN 0459-254-02 0413-022-03 0413-082-18 0473-081-06 0477-222-26

SOLD DATE 1.5.2018 9.21.2017 10.31.2017 5.9.2018

SOLD PRICE $1,850,000 $2,900,000 $650,000 $1,000,000 SALE PRICE: $1,395,000

BUILDING SF 17,050 39,902 6,659 14,358 15,878$/SF $108.50 $72.68 $97.61 $69.65

AC 1.16 .33 .55 1.2 1.55

LAND SF 50530 14400 23778 52272 67,441

UNITS 15 1 6 20 16

YR BUILT 2005 1989 2010 1983

USE CODE Commercial Commercial Commercial Commercial Commercial

LOCATION Inferior ↓ Superior ↑ Inferior ↓ Inferior ↓CONDITION Superior ↑ Same Superior ↑ Inferior ↓

TENANT LOAD Superior ↑ Inferior ↓ Inferior ↓ Inferior ↓

SUBJECT

11

TENANT HIGHLIGHT

Family owned and operated since 2009 by Tony and Maria Pelayo! Serving an extensive menu with American Classic’s and excellent Mexican dishes. The food is all home made and cooked to order.

Tony has had over 30 years of restaurant experience and Maria, over 20 years of customer service experience. Together with both backgrounds they were able to create Lil’ Bit Country Cafe.

Horizon Solar Power has served as a leading designer and installer of residential and commercial solar systems in Southern California Since 2008.Horizon Solar Power has expanded to be one of the regions most trusted solar installers through their commitment and passion in providing industry leading energy saving and customer solar solutions.

This legal center seeks to empower disenfranchised immigrant communities to become economically, socially, educationally, and civically self-sufficient. TODEC was created by Luz Maria and Antonio Ayala as a response to their own difficulties they faced as new immigrants. They have worked for over 40 years to help empower the immigrant communities by helping them adjust to American society.

Farmers Insurance Group is an American insurer group of automobiles, homes and small businesses and also provides other insurance and financial services products. Farmers Insurance has more than 48,000 exclusive and independent agents and approximately 21,000 employees. Wikipedia




CITY OF VICTORVILLE OVERVIEW

VICTORVILLE COUNTY: SAN BERNARDINO TOTAL AREA: ±73.74 SQUARE MILESINCORPORATED: SEPTEMBER 21, 1962MAYOR: GLORIA GARCIACITY MANAGER: KEITH METZLERWEBSITE: WWW.VICTORVILLECA.GOV

Victorville is the largest city in Victor Valley with an estimated population of over 121, 000 with another estimated 300,000 during business hours. A reliable and accomplished work force is one of Victorville’s alluring qualities with over 900,000 workers within a one hour drive. The City works in conjunction with businesses to gain a better understanding of their operations, recognize their challenges, and help to secure cost competitiveness and overall success. As an operation of this partnership, Victorville customizes disparate incentive programs such as permit fast-tracking, employee home purchasing assistance, job training, Enterprise Zone tax credits, and a less-restrictive regulatory environment.Over the past decade, Victorville has grown into a vital West Coast distribution powerhouse. Estimated 60% of all goods moving in and out of Southern CA travel through Victorville. Power Companies such as Walmart, Redbull, Mars Chocolate and Dr Pepper Snapple Group have moved essential pieces of their operations, which has allowed them to reach a population of more than 20 million people within a three hour drive.


CLIMATEVictorville is in the High Desert region of Southern California where humidity is low & sunshine is plentiful.

AVG JANUARY LOW TEMP: 31 FAVG JULY HIGH TEMP: 100 FAVG ANNUAL RAIN FALL: 6.18 in.ELEVATION: 2,875 ft.

SOURCE: USCLIMATEDATA.COM/CLIMATE/VICTORVILLE/CALIFORNIA/UNITED-STATES/USCA1197 VICTORVILLECA.GOV/SITE/ABOUTVICTORVILLE.ASPX?ID=66

2018 POPULATION 141,546 AVERAGE ANNUAL GROWTH (1990-2016): 5.62%FORECASTED ANNUAL GROWTH (2016-2021): 1.02%

SOURCE: U.S. CENSUS BUREAU, CENSUS 2010 SUMMARY FILE 1. ESRI FORECASTS FOR 2018 & 2023.

VICTORVILLE TOP EMPLOYERSRANK EMPLOYER # OF EMPLOYEES

1 Southern California Logistics Airport 2,0732 Victor Valley College 1,1503 Desert Valley Hospital 1,0004 Verizon 9405 Victor Valley Union High School Dist. 8776 Victor Elementary School District 8487 Federal Correctional Complex, VV 8448 Walmart 8309 Global Medical 548




COUNTY OVERVIEW

The largest population in California, 5TH

2,100,000exceeding people

2018 Population

2023 Population

2,173,190

2,265,235

2018 Average Household Income $81,6632018 Average Household Size 3.29

2018 Average Age 32.9

The largest region of Southern California, the Inland Empire, comprised of both Riverside and San Bernardino Counties, is one of the most powerful economies in the United States. It has been rated in the top tier for numerous measures of growth from population and job creation to construction and office space absorption over the last decade.

The Inland Empire currently offers a large array of opportunities including but not limited to an optimal West Coast location, ample amounts of land for future growth, a highly skilled and educated work force, a sophisticated transportation infrastructure, and access to 27 colleges and universities, including seven research institutions. The IE also features a positive changing economic landscape with surfacing technological productivity, and employs an excess of 1 million people.


COUNTY TRANSPORTATION INFRASTRUCTURE

HIGHWAY SYSTEMSSan Bernardino County has approximately 10,000 miles of roadways that include six Federal Interstate Hwys, 2 Federal U.S. Hwys, and 18 State Hwys. Two of the nation’s most important interstate hwys are included in the counties hwy system, Interstate 10 and interstate 15.The County completed the I-10/ Cypress Avenue Over crossing, I-215 Freeway/5th Street Bridge, and the SR 210/Muscoy Railroad Bridge projects between 2010 and 2011. Additionally the I-215 widening project is now complete. The project began in January 2007 and consisted of four phases beginning with the reconstruction of bridges and building new bridges and then moving on to the actual widening.

RAIL DISTRIBUTIONThe San Bernardino Passenger rail Project was complete in 2017 and included re-alignment and addition of a second track. This project was a one mile extension of the Metrolink infrastructure for extended commuter rail service from San Bernardino Santa Fe Depot to the San Bernardino San Bernardino Transit Center.An additional project includes the Redlands Passenger Rail Project which is a forward looking regional transportation project designed to connect residents, businesses and visitors of leisure, education, healthcare and other destinations. This will be a 9 mile project that will introduce a new way for the community to travel.

AIR DISTRIBUTIONThe county has a remarkable collection of airports serving cargo, passenger, and private markets that provide business cost effective and time efficient alternatives to other regional business centers. Airports Include:

• LA/Ontario International Airport (ONT) - Full service airport located in the center of Southern California. It is the second largest commercial airport in Southern California after LAX and is situated near the intersection of two major interstate highways. This airport is UPS’ Western Region hub for both air and trucking operations within a 13 state region.• San Bernardino International Airport (SBD) - This airport is comprised of two separately governed joint powers authorities, the Inland Valley Developmental Agency and the San Bernardino International Airport Authority to oversee the redevelopment and reuse of the former Norton Air Force Base to civilian and commercial use. Overall the goal is to replace the jobs that were once lost when the former Norton Base shutdown, improve the infrastructure, landscape, and aesthetics of the local and surrounding areas. Currently the airport allows for Stage 2 aircraft and has over 60,000 annual flight operations comprised mainly of charter, corporate and general aviation users.• Southern California Logistics Airport (SCLA, VCV) - A 2,500 acre world-class aviation and air cargo facility serving domestic and international requirements. SCLA can entertain all currently flying commercial and military aircraft with a 24-hour per day tower operation and emergency response capabilities comparable to the world’s largest airports. The County is planning two business expansion projects at this airport in the upcoming years that will expand aircraft repair capabilities.• County Owned General Aviation Airports - There are currently six general aviation airports located in San Bernardino County:

- Apple Valley Airport - Baker Airport - Barstow-Daggett Airport - Chino Airport - Needles Airport - Twentynine Palms Airport


KURSCH GROUP C O M M E R C I A L R E A L E S TAT E

Kursch Group is one of the leading commercial real estate firms in the High Desert of Southern California. In 2011, the founders of Kursch Group rallied together and with dedication and fortitude, they produced a solid brokerage firm based on strong client relationships. Leading with an assertive presence, Kursch Group has proven their expertise with an extensive track record and a committed book of clients.

ROB KURTH is a commercial broker with over fifteen years of commercial real estate experience in the High Desert market. Rob has realized the success of more than 1,000 commercial sale and lease transactions. Professionalism and integrity are the foundation upon which Rob’s business relationships are built.Rob has served on the City of Victorville Planning Commission for the past twelve years and is active with other organizations including the Victor Valley Chamber of Commerce as a past Director. His first-hand experience in development, planning and community involvement has given him a tangible edge from which his client benefits.

TONY SCAFIDI is a real estate broker with an extensive background in financial analysis & asset management that has lent itself well to commercial real estate brokerage. He is actively involved in leasing, sales/purchases for improved properties and vacant land.In less than one year after graduating from Pepperdine University Tony earned a position as Asset Manager for a portfolio of approximately $1.5B in assets. In 2010, he co-founded a consulting company for high net-worth investors and owners who demanded a specialized product and top performance for their nationwide assets as well as their local businesses.

multi-tenant professional office building | +15,421 sf · horizon solar power has served as a...

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