whitmar medical dental · include 436 professional services, 845 retail stores, 200 family-type...

WHITMAR

BUILDINGM E D I C A L D E N T A L

G R O U P

BRANDON MICHAELS

16315 Whittier Boulevard | Whittier, CA 90603

16315 Whittier Boulevard | Whittier, CA 90603

ADDRESS16315 Whittier BoulevardWhittier, CA 90603

ASKING PRICE $3,995,000

CURRENT CAP RATE 4.39%

PRICE/SF (BLDG) $277.57

BLDG SF 14,393 SF

LOT SIZE 36,360 SF

APN 8233-012-018

YEAR BUILT 1977

ZONING WHC2

TYPE OF OWNERSHIP Fee Simple

PROPERTY INFORMATIONBRANDON MICHAELSSenior Managing Director InvestmentsSenior Director, National Retail GroupTel: (818) [email protected]: CA #01434685www.BrandonMichaelsGroup.com

INVESTMENT ADVISOR:

G R O U P

BRANDON MICHAELS

Executive SummaryTHE WHITMAR MEDICAL DENTAL BUILDINGMarcus & Millichap has been selected to exclusively market for sale the Whitmar Medical Dental building located at 16315 Whittier Boulevard in Whittier, CA. Whitmar Medical Dental Building is a two-story, 100% leased medical building that has undergone significant upgrades and improvements.

16315 Whittier Boulevard is 100% leased to a strong tenant roster of doctors and dentists. The building has excellent visibility with 152 feet of frontage on Whittier Boulevard and excellent parking. The building has been significantly improved and upgraded with a brand new roof, 15 new air conditioning units, new common area LED lighting, new flooring throughout, new exterior and interior paint, a complete remodel of the patio, a new storefront in the entry, new railing, new gates, new exterior lighting, new stairs, and new pavement.

This fully stabilized asset offers a stable and secure cash flow with minimal rental downside. 68% of the occupancy are on lease terms for a minimum of ten years, creating a very safe and stable investment opportunity. The average unit size is 1,348 square feet, which is an ideal sized footprint. 82% of the units are less than 2,000 square feet.

16315 Whittier is located walking distance to many amenities including Subway, The Original Pancake House, Bluefin Sushi & Terriyaki, and Orchard’s Fresh Foods. Located just a mile away on Whittier Boulevard is Whitwood Town Center, a 65-acre destination shopping center. It is home to major retailers, dining, and green space.

Whittier is a dense, upscale neighborhood located 12 miles east of Downtown Los Angeles. Whittier has a population of approximately 88,061 and is home to Whittier College, a private liberal arts college.

Whittier is located only 12 miles southeast of LA with a comfortable population of 80,000 + residents.

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Investment Highlights• 100% Leased Medical Building - 13,816 SF medical building located in

Whittier, California

• Significant Upgrades and Improvements - Significant capital invested to completely upgrade and renovate the property

• Long Term Leases - 68% of the tenants still have a minimum term of 10 years

• Ideal Unit Sizes - Average unit size of 1,256 SF

• Excellent Visibility - Two-story building with excellent visibility along Whittier Boulevard. 152 feet of frontage on Whittier Boulevard.

• High Traffic Counts - 30,600 vehicles per day on Whittier Boulevard

• Busy Retail Area - Located walking distance to many national retailers and amenities including Subway, The Original Pancake House, Sprouts Farmers Market, and Bluefin Sushi & Terriyaki. Located one mile away on Whittier Boulevard is the 65-acre, open-air destination shopping center Whitwood Town Center, which is home to Target, Kohl’s, Aldi, Buffalo Wild Wings, Red Robin, JC Penney, PetSmart, CVS, and more.

• Dense Immediate Population - Over 467,000 people within a five-mile radius

• Medical Use - Property is permitted for medical use, creating long term value

• Excellent Parking - 44 free parking spaces

• Irreplaceable Location - Whittier is an upscale, dynamic residential community with an estimated population of 88,000. Whittier is home to Whittier College, a private liberal arts college.

Building SF

14,393 SF

100%

1,256 SF

$3,995,000

4.39%

68%

Occupancy

Average Unit Size

Sales Price

CAP Rate

Lease Terms Over 10 Years

Located in close proximity to the 65-acre, open-air, destination shopping center Whitwood Town Center

4 5

LOCATION

16315 Whittier Boulevard, Whittier, CA 90603

SITE

The subject property is located just west of the northwest corner of Whittier Boulevard and Lindesmith Avenue.

SQUARE FOOTAGES

The building square footage is 14,393 SF on a 36,360 SF lot.

FRONTAGE AND ACCESS

Approximately 152 feet of frontage on Whittier Boulevard.

YEAR BUILT

The property was built in 1921.

ZONING

The zoning is WHC2.

APN’S

The APN is 8233-012-018.

TRAFFIC COUNTS

Whittier Boulevard: 30,600 vehicles per day

PARKING

44 surface spaces for a ratio of 2.61/1,000 SF.

PROPERTY UPGRADES & IMPROVEMENTS

• Brand new roof• 15 new HVAC units• All new common area LED lighting• Brand new flooring throughout• New stairs• New paving• Brand new interior and exterior paint• Completely remodeled patio area• Brand new entry storefront• Brand new railings• Brand new gate• New exterior lighting

Property Information

TargetKohl’sVonsJC PenneyRed Robin Gourmet BurgersBlack Angus SteakhouseThe HabitSprint StoreCVSMimi’s Cafe

Old NavyPetsmartPanera BreadChik fil AChipotle Mexican GrillPanda Express24 Hour FitnessBuffalo Wild WingsIhop

76

RENT ROLL

UNIT TENANT SF % LEASE START LEASE EXP RENT RENT/SF OPTIONS

101 Mayra De Lariva 924 7% 2008 12/31/18 $1,848.00 $2.00 -

102 Stacey L Queen DDS 866 6% 2008 5/31/2020 $1,838.00 $2.12 1 - 5 year

103/104 Hakakian 2,446 18% 2017 4/1/2023 $5,000.00 $2.04 1 - 5 year

105 Best Choice Dr. Javid 1,183 9% 2015 M2M $2,366.00 $2.00 -

106/107 Leonard M Burton DDS 1,998 14% 2000 3/1/2028 $3,996.00 $2.00 -

108 Storage 338 2% 2015 M2M $300.00 $0.89 -

201 Simon K Choyee DDS 1,705 12% 2000 3/31/2027 $3,410.00 $2.00 1 - 5 year

202 J & S Dental Lab 415 3% 2013 M2M $600.00 $1.45 -

203 Marianne Tanios 1,467 11% 2000 5/31/2027 $3,022.00 $2.06 1 - 5 year

204 Sharyl L Morrison 1,187 9% 2000 3/1/2028 $2,374.00 $2.00 1 - 5 year

205 Roger C Miya 1,287 9% 2000 3/1/2028 $2,547.00 $1.98 1 - 5 year

Total 13,816 100% - - $27,301.00 $1.98 -

ANNUALIZED OPERATING DATA

INCOME AND EXPENSE CURRENT

Scheduled Lease Income $327,612

Expenses $135,774

Net Operating Income $175,457

Loan Payment $156,494

Pre-Tax Cash Flow 1.3% $18,963

Principal Reduction $37,744

Total Return Before Taxes 3.8% $56,707

PRICING

Sales Price $3,995,000

CAP Rate 4.39%

Price/SF $277.57

Occupancy 100%

PROPOSED FINANCING

Loan $2,500,000 (56%)

Terms 30 year amortization

Interest Rate 4.75%

EXPENSES ANNUAL PER SF

Taxes: $49,938 $3.47

Ins. $4,504 $375

Pest Control $825 $1,000

Landscaping $1,400 $400

Repairs & Maintenance $3,167 $60

Security $3,231 $75

Cleaning and Maintenance $20,805 $145

Utilities $35,200 $1,700

Management $13,104 $80

Trash $3,600 $417

Total Expenses $135,774 $9.43/$0.79 per month

Financials

UNIT SIZES LEASE TERMS LENGTH OF OCCUPANCY

1-1,000 SF 1000-2000 SF 2000+ SF 2027 OR LATER 10+ YEARSBEFORE 2027 20+ YEARS

64%

18% 16%27%

73% 68%

43%

8 9

# ADDRESS SALE PRICE PRICE/SF BLDG SF LOT SF CLOSE OF ESCROW CAP RATE

1 12501 Philadelphia Street, Whittier $2,295,000.00 $270.00 8,500 24,829 for sale 5.75%

2 12825 Philadelphia Street, Whittier $4,000,000.00 $455.58 8,780 33,541 for sale 5.00%

3 7648 Painter Avenue, Whittier $1,381,500.00 $240.26 5,750 26,367 6/29/2017 -

4 11751 Slauson Avenue, Santa Fe Springs $1,350,000.00 $89.87 15,022 22,242 4/25/2017 -

5 7246-7250 Painter Avenue, Whittier $1,850,000.00 $172.57 10,720 23,309 4/10/2017 -

6 13925 Whittier Boulevard, Whittier $6,700,000.00 $317.91 21,075 143,748 6/30/2017 -

7 14036 Whittier Boulevard, Whittier $1,132,000.00 $253.70 4,462 14,218 1/27/2017 -

Average $2,482,700.00 $214.86 11,406 45,977 - -

Sales Comparables

1 2

3

4

5

67

10 11

ADDRESS 12501 PHILADEL-PHIA STREET

Sales Price $2,295,000.00

Price/Sf $270.00

Bldg SF 8,500

Lot Size 24,829

Close of Escrow for sale

CAP Rate 5.75%

ADDRESS 12825 PHILA-DELPHIA STREET


Price/Sf $455.58

Bldg SF 8,780

Lot Size 33,541

Close of Escrow for sale

CAP Rate 5.00%

ADDRESS 7648 PAINTER AVENUE


Price/Sf $240.26

Bldg SF 5,750

Lot Size 26,367

Close of Escrow 6/29/2017

ADDRESS 11751 SLAUSON AVENUE


Price/Sf $89.87

Bldg SF 15,022

Lot Size 22,242


ADDRESS 7246-7250 PAINTER AVENUE, WHITTIER


Price/Sf $172.57

Bldg SF 10,720

Lot Size 23,309


ADDRESS 13925 WHITTIERBOULEVARD, WHITTIER


Price/Sf $317.91

Bldg SF 21,075

Lot Size 143,748


ADDRESS14036 WHITTIER BOULEVARD, WHITTIER


Price/Sf $253.70

Bldg SF 4,462

Lot Size 14,218


Sales Comparables

1 2

3 4

5 6

7

$270.00

$455.58

$240.26

$89.87

$172.57

$317.91

$253.70

$214.86

$-

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

$400.00

$450.00

$500.00

12501Philadelphia

Street, Whittier

12825Philadelphia

Street, Whittier

7648 PainterAvenue,Whittier

11751 SlausonAvenue, Santa

Fe Springs

7246-7250PainterAvenue,Whittier

13925 WhittierBoulevard,

Whittier

14036 WhittierBoulevard,

Whittier

Average

SALES COMPARABLES PRICE/SF

12 13

Area OverviewWHITTIER

Whittier is located in Los Angeles County, about 12 miles southeast of the City of Los Angeles. A five Member City Council under the Council-Manager form of government directs the City. Whittier is a charter law city and was incorporated in 1898. The Charter form of City government was ratified in 1955. The City covers 14.8 square miles and has an estimated population of 88,061. Businesses and industries in the area include 436 professional services, 845 retail stores, 200 family-type restaurants, 37 manufacturing plants, 7 hotels and motels, 2 new automobile dealerships and over 303 specialty shops and boutiques, predominantly located in Uptown Whittier, the Quad shopping mall, as well as the Whittwood Town Center.

The City of Whittier is centrally located to all of Southern California and is only 12 miles southeast of Los Angeles. Easily accessible through the 605 Freeway, between the 60 and the 5 Freeways, Whittier borders Orange County on the east. Its proximity to Downtown Los Angeles and Orange County makes Whittier a desirable place to locate. Disneyland, mountains, beach and desert are a short drive away.

Whittier's strong sense of history and vision for the future has made it an upscale and dynamic residential community. Throughout the years, the City of Whittier has striven to provide a healthy and safe community and a well-maintained infrastructure enhanced by planned patterns of growth and development. Through a balance of economic, social, political, cultural and recreational opportunities, the City Council has encouraged an atmosphere conducive to community spirit and active participation in the affairs and progress of the community.

WHITTIER COLLEGE

Whittier College is a private liberal arts college in Whittier, California that was founded in 1887. In 2016, it had 1,615 undergraduate students enrolled and. Whittier College offers 31 majors and has a 12:1 student faculty ratio. Whittier College is one of the most diverse liberal arts colleges with 60% of the college’s student body consisting of students of color.

UPTOWN WHITTIER

Uptown Whittier is just a few blocks from Whittier College and boasts 64 cafes and restaurants, movie theatre, clothing stores, farmer’s market, and many more shops. Students flock to Uptown Whittier for off-campus life.

Area Overview

EMPLOYERS EMPLOYEES

PIH Health Hospital 3500Interhealth Corp 2600Community College Rio Hondo 1800Los Angeles County Sanitation 1000Sanitation Districts Of LA 950Whittier Hospital Medical Ctr 850Rose Hills Memorial Park 600Fedex Freight 525Los Angeles Freightliner Inc 400Humana Inc 373Whittier College 325US Post Office 315

<15K

35-4

9K

125-

149K

250-

499K

15 -

24K

50-7

4K

150-

199K

500K

+

25-3

4K

100-

124K

75-9

9K

200-

249K

Some College 25.70%

Associate Degree 9.64%

Bachelor’s Degree 14.99%

Master’s Degree 6.74%

Doctorate Degree 0.81%

WHITTIER HOUSEHOLD INCOME BREAKDOWN

WHITTIER LEVEL OF EDUCATION

WHITTIER TOP EMPLOYERS

WHITTIER GENERAL DEMOGRAPHICS

Total Population: 88,061Growth Rate 2010-2017: 3.20%Growth Rate 2017-2022: 3.07% Average Household Size: 2.98Median Age: 36.75Average Household Income: $88,933

Number of Dwelling Units: 30,379Owner occupied: 16,817Renter occupied: 12,241

Median Home Price: $493,541Median Rental Rate: $1,124

14 15

Area Overview

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2014 Population 41,299 245,486 563,809

2014 Households 13,039 84,641 195,197

2014 Average Household Size 3.12 2.87 2.84

2014 Daytime Population 8,484 80,898 242,848

2014 Owner Occupied Housing Units 42.64% 49.92% 48.95%

2014 Renter Occupied Housing Units 57.36% 50.08% 51.05%

2014 Vacant 2.70% 2.60% 2.59%

$ 0 - $14,999 11.9% 10.6% 10.5%

$ 15,000 - $24,999 12.4% 10.4% 9.9%

$ 25,000 - $34,999 14.4% 13.6% 13.6%

$ 35,000 - $49,999 18.3% 19.0% 17.6%

$ 50,000 - $74,999 11.6% 12.1% 11.8%

$ 75,000 - $99,999 8.4% 9.0% 8.6%

$100,000 - $124,999 3.9% 4.9% 5.3%

$125,000 - $149,999 2.5% 4.4% 5.3%

$150,000 - $199,999 0.9% 1.7% 2.3%

$200,000 - $249,999 1.5% 3.0% 4.0%

$250,000 + 23.0% 7.5% 5.9%

2014 Median Household Income $46,363 $55,078 $56,129

2014 Per Capita Income $20,478 $27,173 $29,568

2014 Average Household Income $63,828 $78,363 $84,877

WHITTIER MARKETPLACE

Ralphs, Sav-on, McDonald’s, Subway, Denny’s

THE HOME DEPOT CENTER

Over 150,000 sf of gross leasable area including Starbucks, Togo’s, Verizon, Carl’s Jr, and more.

UPTOWN WHITTIER

Pedestrian friendly, historic heart of Whittier, district with charming shops, dining, entertainment, and more.

THE QUAD

WHITTWOOD TOWN CENTER

65-acre village that offers the community a vibrant open-air place to shop, dine, live and gather. The Whittwood Town Center includes a variety of exciting retailers, specialty shops, restaurants and a food court-all connected by plazas, green space - even a walking path. An upscale residential district of 114 townhomes located at the southwest corner of the center completes this retail and residential village.

WHITTIER RETAIL CENTERS

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BRANDON MICHAELSSenior Managing Director InvestmentsSenior Director, National Retail GroupTel: (818) [email protected]: CA #01434685www.BrandonMichaelsGroup.com

INVESTMENT ADVISORS

G R O U P

BRANDON MICHAELS

whitmar medical dental · include 436 professional services, 845 retail stores, 200 family-type...

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