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LOUTECH HQ 13810 MOUNTAIN AVE, CHINO, CA 91710

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13810 MOUNTAIN AVE, CHINO, CA 9171002

PAGE

The Offering

Investment Summary

Lease Summary

Rent Schedule

Retail Aerial

Site Plan

About the Brand

Location Overview

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05

06

07

09

10

11

Anthony CohenSenior Associate(424) 306-0320

CONTACT INFORMATION

MIKE JAMESCEO, Founder(424) 306-0289

REED MELILLOSenior Director(424) 361-1991

View Interior PhotosView Interior Photos

LOUTECH HQ

TABLE OF CONTENTS

https://res.cloudinary.com/jamesgroup/image/upload/v1632418016/Interior_Photos_-_LouTech_cw9e17.pdf



The Offering

James Capital Advisors is pleased to present this rare opportunity to purchase the Class A Manufacturing & Distribution Headquarters located in Chino, CA.

This is an opportunity to purchase the subject property under a sale-leaseback with LouTech, a leading provider of precision machined parts for the aerospace and defense markets. The Company produces receptacle shells, plug shells, coupling nuts/rings, ramped nuts, jam nuts, and hex nuts to blue chip customers that include Tyco Electronics, HydraFlow, Conesys, ITT and Meggitt and on a full range of military and commercial aerospace platforms including Lockheed Martin’s F35 and Boeing’s 737 NG and 787. LouTech is an extremely profitable business that has historically operated as a high EBITDA margin business.

At the close of escrow, LouTech will sign a 10-year absolute net lease with zero landlord responsibilities. The lease will feature 2% annual increases and one, five-year extension option. In addition, Tenant will have option to purchase the building in Years 5-7 at the greater of 15% above appraised value (Fair Market Value) or 15% above initial sales price guarantying a profit for a real estate investor if the option were to be executed. Please contact the listing agents for additional details.

This location services all LouTech’s clients and has the capacity to support substantial growth. The property is strategically located in one of the U.S’s top industrial markets nearby Chino Airport and a variety of Fortune 500 companies such as Amazon, Walmart, FedEx, etc. LouTech’s 30,818 square feet state-of-the-art HQ is situated on 1.47 acres of land with two loading docks and two drive-in doors.


LOUTECH HQ

THE OFFERING



CONTACT ANTHONY COHEN04

Loan quote provided by James Capital Advisors based on market conditions at this time. Actual rates and terms will vary based on market conditions at closing.

3.65%Rate

30 YearAmortization

Debt Quote

Brad KrausSenior Director, Head of Capital Markets(424) [email protected]

LTV<70%Loan quote provided by James Capital

Advisors based on market conditions at this time. Actual rates and terms will vary based on market conditions at closing. Please Contact:

Debt Quote

Brad KrausSenior Director, Head of Capital Markets(424) [email protected]

$

$

Tenant

Street Address

City

State

Zip

GLA

Lot Size

Year Built

LouTech

13810 Mountain Ave

Chino

CA

91710

1.47 AC

2004

$300.00

$12.00

Price / SF

GLA

Rent / SF

Mission-Critical Manufacturing HQ - This manufacturing facility acts as LouTech’s HQ and serves all of LouTech’s customers.

Brand New Lease - LouTech will be executing a brand new, 10-year lease with 2% annual increases and a 5-year option to extend.

Absolute Net (NNN) Investment - The lease structure calls for zero landlord responsibilities or operating expenses providing a truly passive investment for the investor

Corporate Guaranty - LouTech is highly successful in their field and has historically operated as a high EBITDA margin business with exponential room for growth.

Rent / SF in line with market with room for growth - LouTech is currently paying $12.00 / sf, which is in line with market for comparable properties in the area and provides a runway for continued rent growth over the life of the investment.

4.00%

INVESTMENT SUMMARYLOUTECH HQ

30,818 SF

$9,245,400List Price

Cap Rate

$369,816NOI

% 30,818 SF

mailto:anthony.cohen%40jamescapitaladvisors.com?subject=Loutech%20HQ%20-%20Chino%2C%20CA


Lease Type

Type of Ownership

Original Lease Term

Commencement Date

Lease Expiration

Term Remaining

Increases

Options

Absolute Net (NNN)

Fee Simple

10 Years

10 Years

2% Annually

One (1),5-Year

Real Estate Taxes

Insurance

Roof & Structure

Electrical Power

Dock Doors

Grade Doors

Ceiling Height

Lease Guarantor

Tenant Responsible

Tenant Responsible

Tenant Responsible

800 AMPS of 400

(2) Dock High Doors

(2) Grade Level Doors

26 Feet

Corporate

Strong Operating History - LouTech has been serving its clients since 1987.

Trophy Real Estate Investment in Coveted Chino Industrial Market - Chino industrial rents have trended substantially upwards, increasing more than 71% in the last 5 years and projected to increase by more than 20% in the next 5 years.

High Barrier to Entry Market with limited vacancy - Chino is a high-density Southern California industrial market with a vacancy rate of less than 2%.

Substantial Residential Development Planned - The City of Chino has been mandated to construct 3,720 residential units over the next 10 years, more than half of which will be high-density housing, and should drive population and workforce growth in the region over the term of the lease.

Continued Growth and Development in Greater Inland Empire Market - There is currently more than 28 million square feet of industrial projects under construction in the area and over the past 12 months, rents have increased by 9.9% while maintaining a vacancy rate of 2.40%.

Lease summaryLOUTECH HQ

COE

10 Years After COE



Period Term Annual Rent Monthly Rent Increase Rent / SF

Year 1 Base Term $369,816.00 $30,818.00 - $12.00

Year 2 Base Term $377,212.32 $31,434.36 2% $12.24

Year 3 Base Term $384,756.57 $32,063.05 2% $12.48

Year 4 Base Term $392,451.70 $32,704.31 2% $12.73

Year 5 Base Term $400,300.73 $33,358.39 2% $12.99

Year 6 Base Term $408,306.75 $34,025.56 2% $13.25

Year 7 Base Term $416,472.88 $34,706.07 2% $13.51

Year 8 Base Term $424,802.34 $35,400.19 2% $13.78

Year 9 Base Term $433,298.39 $36,108.20 2% $14.06

Year 10 Base Term $441,964.35 $36,830.36 2% $14.34

Year 11 1st Option $450,803.64 $37,566.97 2% $14.63

Year 12 1st Option $459,819.71 $38,318.31 2% $14.92

Year 13 1st Option $469,016.11 $39,084.68 2% $15.22

Year 14 1st Option $478,396.43 $39,866.37 2% $15.52

Year 15 1st Option $487,964.36 $40,663.70 2% $15.83

LOUTECH HQ

RENT SCHEDULE




RETAIL AERIALLOUTECH HQ





LOUTECH HQ

RETAIL AERIAL





LOUTECH HQ

SITE PLAN




Loutech, LLC

Loutech is a leading provider of precision machined parts for the aerospace and defense markets. From its state of the art, 30,818 square foot facility in Chino, CA, the Company supplies a range of mil spec qualified products to exacting requirements.

Loutech has established its reputation through adherence to its high standards for quality assurance, as well as its focus on developing and maintaining close customer relationships by providing exceptional customer service. Building upon advantages in manufacturing, technology and long standing customer relationships, the Company has established a defensible position in a growing market with strong barriers to entry. Its strengths and focus have resulted in the Company’s position as a key supplier to blue chip customers such as Tyco Electronics, HydraFlow Conesys, ITT and Meggitt and on a full range of military and commercial aerospace platforms including Lockheed Martin’s F 35 and Boeing’s 737 NG and 787.

Strong Customer Base and Positions on High-Growth Platforms

Loutech holds long-term relationships with customers in the aerospace and defense electrical connector and flow control segments, many of which span decades. Loutech has rigorous quality standards for a wide range of services offered to its customers with AS9100 certification and a 100% audit grade.

48Number of Employees

Chino, CAHeadquarters

Loutech.netWebsite

1987Year Founded

LOUTECH HQ

ABOUT THE BRAND


Attractive to Commercial Developers

Chino’ strong demographics and its location at the convergence of Orange, Riverside, Los Angeles, and San Bernardino Counties make it attractive to commercial developers. The City’s high average household income of $106,825 (in 2006) is second only to the exclusive community of Indian Wells in the Inland Empire. Prominent retailers, like Trader Joe’s, H & M, and XXI Forever, have chosen to locate in Chino. Many high-end national retailers have locations in Chino.

Ranked Inside “100 Best Places to Live” list by Money Magazine

Chino’s reputation is known in the national arena as well, the City of Chino Hills has been ranked #38 on Money magazine’s 2019 list of the “100 Best Places to Live.” According to the CNN/Money website, the list includes “the top 100 terrific cities that offer what American families care about most - strong job opportunities, great schools, low crime, quality health care, plenty to do, and a true sense of community.”

Chino, CA

Chino is located in San Bernardino County in the heart of the Greater Los Angeles region, about 35 miles east of Los Angeles and 25 miles northeast of Anaheim. Situated in the lush valley below the San Gabriel Valley Mountains, the city lies within 30 minutes of over 20 public and private colleges and universities. Chino is bounded by California State Highways 60 and 71, and provides close access to Interstates I-10, I-15 and State Highway 91. As of 2020, the population exceeded 94,371.

For a small city, Chino offers a good mix of recreational, educational and cultural sites to see and visit. Prado Regional Park provides an inviting rural getaway, offering a variety of recreational options on more than 2,000 acres in the Chino Valley Basin. Visitors can enjoy fishing, camping, horseback riding, picnicking, boating and more. Located at the Chino municipal airport is the Planes of Fame Air Museum. The facility displays aircraft which span the history of manned flight, including numerous milestone-achieving test and research flight vehicles. . There are many other sites of interest as well as world class attractions in Southern California and Chino’s central location affords easy access to all of them.

LOUTECH HQ

LOCATION OVERVIEW


Planes of Fame Air Museum

Planes of Fame Air Museum is an aviation museum in Chino, California, and Valle, Arizona. The museum has many flying and static aircraft, along with several rare examples under restoration.

The Shoppes at Chino Hills

The Shoppes at Chino Hills is the go to place for fun and fashion. The center has more than 100 national retailers and is open every day. The Shoppes is a one-of-a-kind shopping and dining destination.

Chino Hills State Park

The park is a critical link in the Chino–Puente Hills wildlife corridor, and a major botanical habitat reserve for resident and migrating wildlife. Visitors can walk, horseback ride, or mountain bike.

Yanks Air Museum

The Yanks Air Museum is a non-profit 501 organization and museum dedicated to exhibiting, preserving and restoring American aircraft and artifacts in order to show the evolution of American aviation.

Chino Airport

The airport is a county-owned airport about three miles southeast of Chino. It is currently classified as reliever airport, due to its proximity to the Ontario International Airport.

Prado Regional Park

Prado Regional Park is a 2,000-acre park that offers fishing, archery, camping, a golf course, horseback riding, and a shooting range, which was the site of the 1984 Olympic shooting events.

LOUTECH HQ

LOCATION OVERvIEW

060504

01 02 03


Preserve Area of Chino

Town Center At The Preserve

Preserve Area of Chino

The Chino Planning Commission approved a request by developer Chino Preserve Development Corp. to construct 76 single-family detached homes on 7.91 acres on the southeast corner of Bickmore and Osprey avenues in the Preserve area of south Chino. The two-story homes will range from 2,010- to 2,172-square-feet, and from 3 bedrooms, 2.5 baths to four bedrooms and three baths. Each will have a two-car garage with two additional driveway spaces. The planning commission’s approval of the project expires on July 1, 2024. If the homes are not built by that time, the developer will have to go through the approval process again.

Town Center At The Preserve

Located at the heart of a new mixed-use master plan this new ground-up retail center serves to create a main-street atmosphere and provide opportunities for public gatherings such as farmer’s markets and movie nights. Designated ride-share pick-up and drop-off locations along main street and interstitial plazas between the buildings facilitate pedestrian activity and reinforce the small town main street feel the city desired. Establishing a day to night destination, architects created a center focused on community connectivity from the shade structures and cabanas that host outdoor lounge seating and fire pits.

LOUTECH HQ

LOCATION OVERvIEW


POPULATION

2026 Projection

2021 Estimate

2010 Census

Growth ‘21 - ‘26 6.34% 4.33% 4.14%

Growth ‘10 - ‘21 32.51% 16.70% 16.08%

1-Mile 3-Mile 5-Mile

HOUSEHOLDS

2026 Projection

2021 Estimate

2010 Census

Growth ‘21 - ‘26 7.11% 4.54% 4.36%

Growth ‘10 - ‘21

Average Income

Median Income

42.71% 18.50% 17.74%

1-Mile 3-Mile 5-Mile

LOUTECH HQ

DEMOGRAPHICS

21,401

5,211

123,256

34,113

341,443

93,977

20,125

4,865

118,144

32,632

327,856

90,047

15,188

3,409

101,239

27,538

282,449

76,482

$130,869

$113,806

$104,418

$87,427

$103,555

$84,919

@jamescapitaladvisorswww.jamescapitaladvisors.com/careers15

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guar-antees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or com-parable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

CONFIDENTIALITY

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NON-ENDORSEMENT

JAMES CAPITAL ADVISORS, INC.

DISCLAIMER

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LISTING AGENTS

Senior Director

ANTHONY COHEN (424) 306-0320

[email protected] RE Lic. 02097395

MikeJames (424) 306-0289

[email protected] RE Lic. 01869890CEO, Founder

(424) [email protected] RE Lic. 01984199

REED MELILLOSenior Director

JAMES CAPITAL ADVISORS, INC.

CONTACT INFORMATION

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