pasadena investment offering 245 north lake pasadena …
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PA S A D E N A I N V E S T M E N T O F F E R I N G
TWO-STORY OFFICE & RETAIL BUILDING CONTAINING ±5,675 SQUARE FEET IN THE HEART OF PASADENA’S MAIN OFFICE CORRIDOR
245 NORTH LAKE PASADENA CA
N L A K E A V E N U E
GATEWAY PLAZA
PASADENA GATEWAYVILLAS APARTMENTS
CONRAD'S
CITY PLACEAPARTMENTS
E WALNUT STREE T
301 N LAKE
METRO GOLD LINE
STATEMENT OF CONFIDENTIALITY & DISCLAIMER
This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and constitutes part of the Confidential Information (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible investment in 820 Central Avenue, CA (the “Project”), and is not to be used for any other purpose or made available to any other party without the prior written consent of Bissias Dalkas & Riordan Enterprises (“Managing Member”), or its exclusive broker, Cushman & Wakefield. This Memorandum was prepared by Cushman & Wakefield based primarily on information supplied by Managing Member. It contains select information about the Project and the real estate market but does not contain all the infor¬mation necessary to evaluate the Project. The financial projections contained herein (or in any other Confidential Information) are for general reference only. They are based on assumptions relating to the overall economy and local competition, among other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While the information contained in this Memorandum and any other Confidential Information is believed to be reliable, neither Cushman & Wakefield nor Managing Mem¬ber guarantees its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate the prospective purchaser’s investi-gation, must make its independent investigations, projections and conclusions regarding the investment in the Project without reliance on this Memorandum or any other Confidential Information. Although ad¬ditional Confidential Information, which may include engineering, environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers and environmental experts. Neither Cushman & Wakefield nor Managing Member guarantees the accuracy or completeness of the information contained in this Mem¬orandum or any other Confidential Information provided by Cushman & Wakefield and Managing Member. Managing Member expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with or without written notice. Managing Member shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Managing Member and any conditions to Managing Member’s obligations thereunder have been satisfied or waived. Managing Member has retained Cushman & Wakefield as its exclusive broker and will be responsible for any commission due to Cushman & Wakefield in connection with a transaction relating to the Project pursuant to a separate agreement. Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Managing Member. Each prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or its broker. This Memoran¬dum is the property of Managing Member and all parties approved by Managing Member and may be used only by parties approved by Managing Member. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement.
EXCLUSIVE AGENTS MICHAEL GOOCH ANDREW TASHJIAN
ASSOCIATE MANAGING DIRECTOR
818.292.5665 213.955.5148
[email protected] [email protected]
CA LIC #02042127 CA LIC #01867711
CONTENTSExecutive Summary .............................................. 1Property summary .............................................. 3Investment highlights ....................................... 5financial summary ...............................................7prospective purchasers guidelines ............. 9the property ..........................................................11FINANCIAL ANALYSIS ..............................................18sales comparisons ............................................20zoning .....................................................................22demographics ......................................................23
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N LAKE AVENUE
N EL MOLINO AVENUE
300 N LAKE13-STORY OFFICE TOWER
LAKE AT WALNUT111 RESIDENTIAL UNITS
301 N LAKE11-STORY OFFICE TOWER
METRO GOLDLINE
E W A L N U T S T R E E T
U N I O N S T R E E T
CO LO R A D O B LV D
245 NORTH LAKE
155 N LAKE11-STORY OFFICE TOWER
888 E. WALNUT6-STORY OFFICE TOWER
S MADISON AVENUE
1
As exclusive advisor, Cushman & Wakefield of California, Inc. is pleased to present the extraordinary
opportunity to acquire 245 North Lake Avenue (“Property”). This perfectly positioned asset is in
the heart of Pasadena’s main office corridor and consists of a two-story office over retail building
containing a total of ±5,675 square feet. The Property is home to two retail tenants paying under-
market rents and one vacant office space offering the chance to significantly improve cash flow
through the lease up and rent market increases.
EXECUTIVE SUMMARY245 NORTH LAKE AVENUE, PASADENA, CA 91101
N WILSON AVENUE
300 N LAKE13-STORY OFFICE TOWER
LAKE AT WALNUT111 RESIDENTIAL UNITS
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PROPERTYSUMMARY
ADDRESS: 245-249 North Lake AvenuePasadena, CA 91101
APN: 5723-010-042
BUILDING SIZE: ±5,675 square feet
NO. OF FLOORS: Two
LOWER LEVEL RETAIL: ±4,500 rentable square feet
2ND FLOOR OFFICE: ±1,000 rentable square feet
LOT SIZE: ±8,979 square feet (0.21 acres)
YEAR BUILT: 1953 (extensive remodel in 2003)
PARKING RATIO: 1.44/1,000 (8 dedicated spaces)
ZONING: CD-5
LAKE AVE FRONTAGE: 44 Feet
PRICE: Unpriced
BID DUE DATE: August 15, 2018
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N LAKE AVENUE
GATEWAY PLAZA
PASADENA GATEWAYVILLAS APARTMENTS
CITY PLACEAPARTMENTS
245 NORTH LAKE
301 N LAKE
METRO GOLDLINE
5
• Significant cash flow upside
• Irreplaceable, highly visible Pasadena location right off of the 210 Freeway
• Attractive architecture with abundant on-site parking to the rear
• Nestled between three of Pasadena's most prominent Class-A office towers and surrounded by upscale, affluent multi-family developments
• An impressive Walk Score of 86 due to the metro station just one block away
INVESTMENTHIGHLIGHTS
N LAKE AVENUE
6
7
FINANCIALSUMMARYTHE NET INCOME FIGURES REFERENCED BELOW REFLECT AN ESTIMATE OF INCOME AND EXPENSES FOR THE CALENDAR YEAR OF 2018.
Price ........................................................................................................Unpriced
Approx. Building GLA (All Floors) ............................................. 5,550 SF
% Leased .........................................................................................................82%
CURRENT NOI ...................................................................................$119,137.12
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99
PROSPECTIVE PURCHASERS GUIDELINESLetter of IntentOffers should be in the form of a Letter of Intent (LOI), and at a minimum, offers should include the following:
• Price
• Earnest Money Deposit
• Due Diligence Time Period
• Closing Period
Offer Due DateA Call for Offers Date for qualified purchasers will be on August 15, 2018. Offers should be addressed to the
following individuals:
MICHAEL GOOCH ANDREW TASHJIAN ASSOCIATE MANAGING DIRECTOR
818.292.5665 213.955.5148
[email protected] [email protected]
CA LIC #02042127 CA LIC #01867711
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245 NORTH LAKE
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THE PROPERTYOVERVIEW245 North Lake is an aesthetically appealing, mixed-use asset with upside potential in an exceptional location along on one of Pasadena’s most traveled thoroughfares. This investment or owner/user building consists of approximately 5,675 of prime frontage offering highly sought after visibility and convenient access from the street or through the private parking located to the rear.
BUILDING’S HISTORYOriginally built in 1953, the building underwent an extensive exterior and interior renovation in 2003. Renowned architect Peter Tolkin of Tolkin Architecture spearheaded the project and did a masterful job which is seen especially in the interior of the building. The following work was completed as part of that rehab:
- A comprehensive modernization of the retail spaces and upstairs office suite - Complete facelift of the street front façade- Exposing and restoring of the original red brick- Brand-new gas lines- A new underground transformer vault
245 N LAKE
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COMMON AREA
ELE
CT
RIC
AL
RO
OM
RE
ST
RO
OM
RE
ST
RO
OM
OF
FIC
E
EN
TR
AN
CE
CASHIER
ground floor - retail
LA
KE
AV
EN
UE
PA
RK
ING
LO
T
245 N LAKE
247 N LAKE
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COMMON AREA
ELE
CT
RIC
AL
RO
OM
RE
ST
RO
OM
RE
ST
RO
OM
OF
FIC
E
EN
TR
AN
CE
CASHIER
ground floor - retail
LA
KE
AV
EN
UE
PA
RK
ING
LO
T
247 N LAKE
249 N LAKE
PA
RK
ING
LO
T
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SECOND FLOOR - OFFICE
LA
KE
AV
EN
UE
PA
RK
ING
LO
T
249 N LAKE
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FINANCIAL ANALYSIS
PRICE PSF: $540.54 APPROX. SQUARE FEET: 5,550
CURRENT PROFORMA
BASE RENTAL REVENUE $148,905.12 $233,749.08
ANNUAL EXPENSES INSURANCE $2,325.00 $2,325.00
PROPERTY TAX $14,400.00 $30,000.00
WATER/ELECTRICITY $2,208.00 $2,208.00
GARBAGE $6,444.00 $6,444.00
LANDSCAPING $1,080.00 $1,080.00
JANITORIAL $2,711.00 $4,000.00
REPAIRS & MAINTENANCE $600.00 $4,000.00
TOTAL EXPENSES $29,768.00 $50,057.00
EXPENSES PSF $5.36 $9.02
NET OPERATING INCOME $119,137.12 $183,692.08
CASH FLOW PROFORMA
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RENT ROLL
CURRENT
SUITE TENANT NAME APPROX. SQUARE FEET
ANNUAL RENT
MONTHLY RENT
RENT PSF / MONTH
MONTHLY CAM / SF
LEASE TYPE
LEASE EXPIRATION
ANNUAL INCREASES
245 Salon Centric 2,425 $91,000.08 $7,583.34 $3.13 $0.34 MG 6/15/2022 3%
247 Gentle Care Health Spa & Dentist 2,125 $48,000.00 $4,000.00 $1.88 $0.00 MG Month-to-Month 0%
249 Vacant 1,000 $0.00 $0.00 $0.00 $0.00 MG Vacant 0%
TOTAL 5,550 $139,000.08 $11,583.34 $825.42
PROFORMA
SUITE TENANT NAME APPROX. SQUARE FEET
ANNUAL RENT
MONTHLY RENT
RENT PSF / MONTH
MONTHLY CAM / SF
LEASE TYPE
LEASE EXPIRATION
ANNUAL INCREASE
245 Salon Centric 2,425 $91,000.08 $7,583.34 $3.13 $0.34 MG 6/15/2022 3%
247 Gentle Care Health Spa & Dentist 2,125 $84,405.00 $7,033.75 $3.31 $0.70 MG 1/1/2024 3%
249 Tenant 1 1,000 $30,600.00 $2,550.00 $2.55 $0.00 MG 1/1/2024 3%
TOTAL 5,550 $206,005.08 $17,167.09 $2,312.00
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SALESCOMPARISONS
394 S. LAKE AVE. PASADENA, CA
1441 E. WASHINGTON BLVD.PASADENA, CA
39 E. COLORADO BLVD. PASADENA, CA
SELLER Henderson Legacy LLC Washington Hill Associates LP Aida Rose LLC
BUYER Lake Avenue Place LLC Hastings Ranch Shopping Center Fc International LLC
SALE DATE 1-Jun-16 26-Jul-17 10-Aug-17
SF/ACRES 9,012/0.21 4,064/0.09 2,839/0.07
SALE PRICE $3,650,000 $1,800,000 $4,565,000
BUILDING PRICE PSF $445 $444 $1,660
ZONING CD-5 CL CD-1 AD-1
80 N. LAKE AVE. PASADENA, CA
896-906 GRANITE DR. PASADENA, CA
1384 E. WASHINGTON BLVD. PASADENA, CA
222 N. EL MOLINO AVE. PASADENA, CA
SELLER Sherry Irwin, Sherry Dalia
540 South Lake Ave LLC
Ewv LLC Olive Properties LP, Lakritz Alfred J
BUYER Golden Rowland Investment LLC
Ddi-540 S Lake LLC Shops On Hill LLC Dc Walnut Holdings LLC
SALE DATE 31-Aug-17 20-Mar-17 20-Oct-16 7-Jun-16
SF/ACRES 15,566/0.36 9,352/0.21 13,173/0.30 4,680/0.11
SALE PRICE $5,500,000 $15,500,000 $13,400,000 $4,350,000
BUILDING PRICE PSF $917 $4,191 $1,464 $1,045
ZONING CD-5 AD-2 CD-5 CL CD-3
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394 S. LAKE AVE. PASADENA, CA
1441 E. WASHINGTON BLVD.PASADENA, CA
39 E. COLORADO BLVD. PASADENA, CA
SELLER Henderson Legacy LLC Washington Hill Associates LP Aida Rose LLC
BUYER Lake Avenue Place LLC Hastings Ranch Shopping Center Fc International LLC
SALE DATE 1-Jun-16 26-Jul-17 10-Aug-17
SF/ACRES 9,012/0.21 4,064/0.09 2,839/0.07
SALE PRICE $3,650,000 $1,800,000 $4,565,000
BUILDING PRICE PSF $445 $444 $1,660
ZONING CD-5 CL CD-1 AD-1
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ZONINGThe Property’s CD-5 zoning is the ideal for a Pasadena investment or owner/user building, and could bode well for an eventual assemblage and development of the site. The objectives of the Central District is to provide for a varied mix of land uses with the goal to create the primary financial, business, retailing, government, and mixed-use epicenter of the City. It accentuates a higher density environment that will support a pedestrian-oriented community.
The CD-5 subdistrict is specifically designed to reinforce Lake Avenue as a high-end commercial street with local shopping and class-A office space.
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DEMOGRAPHICSOVERALL
POPULATION
COUNT
MEDIAN
AGE
RANGE
AVERAGE
HOUSEHOLD
INCOME
BACHELOR'S
DEGREE OR
HIGHER
10,147,765 141,150
LA COUNTYPASADENA
35.437.7
$93,392 $105,221
31.0%51.0%
WHITE
COLLAR
EMPLOYMENT
59.8%44.0%
AVERAGE
HOME
VALUE
$576,890 $810,145
Cushman & Wakefield of California, Inc.900 Wilshire Boulevard, Suite 2400
Los Angeles, CA 90017 | USALic. #00616335
cushmanwakefield.com
EXCLUSIVE AGENTS MICHAEL GOOCH ANDREW TASHJIAN
ASSOCIATE MANAGING DIRECTOR
818.292.5665 213.955.5148
[email protected] [email protected]
CA LIC #02042127 CA LIC #01867711
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mission hills
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woodland hills
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605110
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245 NORTH LAKE