2100 E. 4Th Street Santa Ana
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2100 E. 4TH STREET SANTA ANA FOR SALE | SINGLE TENANT OFFERING MEMORANDUM Newmark and Lee & Associates (the “Agents”) has been engaged as the exclusive sales representatives for the sale of 2100 E. 4th Street, Santa Ana, CA 92705 (the ”Property”) by 2100 E 4th St 92705 LLC (the “Seller”). This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation (January 29, 2020) of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified prospective purchasers. Seller and Agents each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Seller reserves the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and the Purchaser thereunder. This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent. 2100 E. 4TH STREET SANTA ANA TABLE OF CONTENTS 01 EXECUTIVE SUMMARY 02 PROPERTY INFORMATION 03 TENANT OVERVIEW 04 AREA OVERVIEW 05 MARKET OVERVIEW 01 EXECUTIVE SUMMARY THE OFFERING Newmark and Lee & Associates, together as exclusive advisors, are pleased to present this opportunity to acquire 2100 E. 4th Street, Santa Ana, CA 92705 (the Property). This two-story building is located in the Park Center Submarket of Orange County and is currently 100% leased to the Consulate of The United Mexican States, one of the busiest locations for the Mexican Consulate. Built in 1975, the Property is situated on 1 parcel totaling ±1.27 acres and is located directly between the 5 and 55 Freeways, within an area that many multifamily developers have identified for their next development grounds. 6 2100 E. 4TH STREET PROPERTY SUMMARY OFFERING SUMMARY 24,131 SF $5,310,000 Total Building Area Price 1975 5.16% Year Built Cap 1.27 Land Acres 400-091-01 APN 101 Free Surface Parking Stalls 4/1,000 Overall Parking Ratio MONTHLY YEARLY EST. CAP TENANT RENT ROLL SF TERM RENT RENT NOI RATE Consulate of The United 100% Mexican States 24,131 5/1/19 4/30/20 $32,336 $388,026 $258,827 Leased by Secure Government Tenant 3% Annual Increases 5/1/20 4/30/21 $33,306 $399,667 $265,548 No Options to Extend 5/1/21 4/30/22 $34,305 $411,657 $274,185 5.16% 5/1/22 4/30/23 $35,334 $424,007 $283,098 5.33% 5/1/23 4/30/24 $36,394 $436,727 $292,296 5.50% TOTALS: $171,675 $2,060,084 $1,373,954 2100 E. 4TH STREET 7 02 PROPERTY INFORMATION FLOOR PLAN FIRST FLOOR 10 2100 E. 4TH STREET FLOOR PLAN SECOND FLOOR 2100 E. 4TH STREET 11 PLAT MAP 12 2100 E. 4TH STREET 2100 E. 4TH STREET 13 03 TENANT OVERVIEW T TENANT OVERVIEW PREMISES & TERM Consulate of The United Tenant ABOUT THE CONSULATE OF MEXICO Mexican States The Consulate of Mexico in Santa Ana Use Foreign Consulate and Office provides Mexican citizens with the following services: Lease May 1, 2019 • Process Passport Applications Commencement • Process Visa Applications Lease Expiration April 30, 2024 • Notarize Certain Documents 5 Years • Legalize Certain Documents Term (2nd Term) • Registration of Marriage, Birth and Death • Authentication of Documents Diplomatic Clause: The Parties agree that if at any • Additional Legal Advice time the United Mexican States withdraws or closes This location is one of approximately 50 in or is forced to withdraw or close its representation in the United States and is reported to be the Orange County, California, Lessee shall have the right busiest of them and has Consular Jurisdiction to terminate this Lease, without any liability other than in all of Orange County cities. Lessee shall pay any unamortized improvement and commission expenses to Lessor at the time of lease termination, by giving no less than two (2) months' prior written notice. Upon the expiration date of such notice, and Lessor's receipt of payment from Lessee for any unamortized improvement and commission expenses, this Lease and everything contained therein shall automatically terminate, and both any prepaid rent for the unexpired portion of the term and the security deposit, shall be refunded to Lessee. 16 2100 E. 4TH STREET EXPENSES Property Taxes Landlord Responsibility Insurance Landlord Responsibility Utilities Landlord Responsibility Repairs & Landlord Responsibility Maintenance After-Hours HVAC Tenant Responsibility Janitorial Tenant Responsibility Landlord is responsible for all Capital Expenditures; however, Landlord may terminate the Lease in the final two (2) years if the Landlord determines the costs associated are not economically feasible to pay its share thereof. Landlord shall provide a 90-day written notice and Tenant shall have ten (10) days to determine if they want to pay for such Capital Expenditures. 2100 E. 4TH STREET 17 18 2100 E. 4TH STREET INCOME & EXPENSES PRICE $5,310,000 Capitalization Rate 5.13% Total Rentable Area (SF) 24,131 Total Land Acres 1.27 STABILIZED INCOME Scheduled Rent $411,657 OPERATING EXPENSES Taxes $63,720 Utilities $53,850 Repairs & Maintenance $8,284 Insurance $5,224 Professional Fees $2,521 License & Permits $520 Total Operating Expenses: $134,119 NET OPERATING INCOME $274,185 2100 E. 4TH STREET 19 04 AREA OVERVIEW CITY OF SANTA ANA | DEMOGRAPHICS 1-MILE 3-MILE 5-MILE 2019 RADIUS RADIUS RADIUS Population 68,666 360,322 709,468 2ND LARGEST 10 MILES 7 MILES Households 14,376 82,306 187,040 CITY IN ORANGE FROM THE TO JOHN WAYNE COUNTY COAST AIRPORT Families 11,741 65,225 141,754 Avg. Household Size 4.54 4.26 3.71 Owner Occupied Housing 3,280 33,798 85,847 Renter Occupied Housing 11,096 48,507 101,193 Median Age 27.7 30.5 32.8 Median Household Income $42,792 $59,072 $68,704 Avg. Household Income $58,995 $76,700 $90,249 Source: esri 22 2100 E. 4TH STREET SANTA ANA The city of Santa Ana in Orange County is a beautiful city located in Southern California, adjacent to the Santa Ana River and about 10 miles from the coast. It's home to the Santa Ana Civic Center, Ronald Reagan Federal Building and Courthouse, Santa Ana Zoo, Bowers Museum, Discovery Cube Orange County, and The Heritage Museum. The city itself is very densely populated, with the downtown area being the main arts and entertainment hub. There are a lot of restaurants, coffee shops, and parks. The public schools are above average. Several historic homes dating from the late 1800's can be found as well, and their preservation is a key issue as development of the downtown area continues. ORANGE COUNTY Orange County is located in the Los Angeles metropolitan area and is the third-most populous county in California. The county has 34 incorporated cities. Older cities like Santa Ana have traditional downtowns dating back to the 19th century, while newer commercial development or "edge cities" stretch along I-5 between Disneyland and Santa Ana and between South Coast Plaza and the Irvine Business Complex, and cluster at Irvine Spectrum. The county is a tourist center, with attractions like Disneyland, Knott's Berry Farm and several popular beaches along its more than 40 miles of coastline. 2100 E. 4TH STREET 23 OC STREETCAR TRANSPORTATION 24 2100 E. 4TH STREET 2100 E. 4TH STREET 25 GRAND AVENUE E. 4TH STREET DOWNTOWN SANTA ANA 26 2100 E. 4TH STREET OC GLOBAL MEDICAL CENTER 282-BEDS 27 SQ. MILES FUTURE CITIZENS SANTA ANA MULTI-HOUSING BUSINESS BANK N. TUSTIN AVENUE TUSTIN N. 2100 ST. JOSEPH E. 4TH HERITAGE KAISER STREET PERMANENTE MEDICAL E. 4TH STREET E. 4TH STREET FUTURE MULTI-HOUSING SOCIAL SECURITY NINTEEN01 LUXURY APARTMENT ADMINISTRATION COMMUNITY E. 1ST STREET DRUG ENFORCEMENT ADMINISTRATION SANTA ANA ZOO E. MAIN STREET W. MAIN STREET 2100 E. 4TH STREET 27 05 MARKET OVERVIEW ORANGE COUNTY OFFICE MARKET (4Q 2019) TECH TENANTS EXPAND, RECORD HIGH RENTS CLOSE THE YEAR ORANGE COUNTY’S EVOLVING OFFICE LANDSCAPE • Vacancy remained unchanged from three months ago, a result of flat Active space requirements set a new tone in 2019 for a market historically absorption. driven by financial services and mortgage-related firms. Traditional office • The largest office lease of the past two years took place this quarter occupiers continue to show strong demand, but Orange County’s dynamic when Alteryx, a computer software company, committed to 183,000 live-work-play environment and accessibility to a highly skilled labor pool square feet at Spectrum Terrace.