3700 Vanowen Street Burbank, Ca 91505
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FOR SALE 15 YEAR SINGLE TENANT TRIPLE NET LEASE WITH CREDIT TENANT 39,826 SF STATE OF THE ART CREATIVE-FLEX BUILDING 3700 VANOWEN STREET BURBANK, CA 91505 Capital Markets | Investment Properties THE OFFERING INVESTMENT OVERVIEW CBRE is pleased to offer a bond-equivalent leased investment opportunity, a 39,826 square foot, state-of-the-art creative-flex building located in the highly acclaimed market of Burbank, California. The one story building features two mezzanines and is directly across from Burbank airport, with close proximity to major media studios such as Walt Disney Studios and Warner Bros. Studios. PRICING 3700 Vanowen Street is being offered for sale without a formal asking price. Offers will be negotiated as received. INVESTMENT HIGHLIGHTS Tenant ARRI Inc. 15 years with no right to Term terminate Start Date March 1, 2019 End Date February 28, 2034 Start Rate $1.93 psf Triple Net $933,120 Year 1 NOI (9/2019 to 8/2020) Rent Increases 3% fixed Prop 13 Protection None ARRI has posted a $2,000,000 Letter of Credit letter of credit Security Deposit $123,000 Tenant has invested in Tenant Improvements excess of $2,800,000 within TENANT PROFILE the building ARRI Inc., which recently celebrated its 100th Tenant has two (2), five (5) year Options anniversary, is one of the world’s leading options to extend the lease manufacturers and distributors of motion picture cameras, digital intermediate systems and lighting equipment. The company offers an array of services, FINANCIAL SUMMARY such as scanning, recording, digital cinema, visual ARRI Inc. executed a 15 year lease commencing March effects and film labs, to name a few. Additionally, its 1, 2019 for the entire 39,826 square feet at a rent of rental items include cameras, dollies, cranes, remote $933,120 year 1 (September 2019-August 2020, $1.93 heads and special camera vehicles. The company psf mo triple net) with a fixed annual rent increase of 3% serves customers in the United States, Canada, and no cancellation rights. In addition, ARRI has posted Europe, Asia and Australia. ARRI is a recipient of the a $2,000,000 letter of credit. Scientific and Engineering Award. 3 3700 VANOWEN STREET The property is directly across the street from the Hollywood Burbank Airport and a main arterial Metrolink station. LOCATION OVERVIEW Burbank, though extremely diverse in business, is largely characterized by entertainment and studio-related companies. While Hollywood is the global symbol of the entertainment industry, much of the actual production occurs in Burbank. The area remains home to four major film and television studios - Warner Bros., Disney/ABC, Comcast’s NBC Universal and Dreamworks Animation. Various smaller film studios including Cartoon Network, Nickelodeon, KCET and The Burbank Studios are also in Burbank. These studios act as magnets in attracting ancillary service providers to the Burbank media industry. Over the past 3 years, many major creative companies including NYC Film Academy, Legendary Films, Freemantle, Legal Zoom, Aspect Radio and DC Comics have moved their operations to Burbank from Hollywood and surrounding markets. Pro-Business Environment: + No City Income Tax + No Gross Sales Receipt Tax + LEED Incentive Program + Favorable Permitting Process + Energy Solution Rebates 4 PROPERTY DESCRIPTION Concrete and steel with Land Area 1.78 acres (77,489 SF) extensive window coverage Construction and both wood and metal Rentable Area (SF) 39,826 sf accents HVAC Package units on roof One story with two Stories mezzanines Fire Protection Sprinklered Year Built 2019 Card key entry with Security exterior cameras 83 single stall spaces Parking (2.1/1,000) Enter from Vanowen Street one half block west of Holly- wood Way approximately one Parcel No. 2463-001-020 Access mile west of the Golden State (5) Freeway, one of the major C-3 Regional Commercial north-south arteries through Zoning District Southern California Minimum Warehouse 1 dock high 24’ Roll-up Doors Clear Height 3 ground level The asset features a high-end, beautifully appointed build-out with a fresh, creative finish. 5 3700 VANOWEN STREET FLOOR PLAN 6 AREA OVERVIEW LOS ANGELES AREA OVERVIEW Los Angeles County is the main economic force within Approximately 15% of all private wage and salary the Southern California region. It is the most populous workers in the L.A. Region worked directly or county in the United States with nearly 10 million indirectly in the creative industries. Today, Los residents and is larger in population than 42 states. The Angeles County accounts for approximately 75% of nearly $600 billion Los Angeles County Gross Product the entertainment industry employment nationwide. ranks 20th among the world’s economies. L.A.’s “creative economy” is comprised of the 12 The unemployment rate in Los Angeles County was 4.5% creative industries below, as well as organizations during the month of November 2018. In the same time that provide a venue for artists to share their works span, approximately 43,000 jobs were added, bringing such as museums, art galleries and theaters. the region’s total non-farm employment to approximately 4.5 million. + Architecture/Interior Design + Art Galleries The Entertainment Capital of the World + Communication Arts Los Angeles traces its roots as the leader of the entertainment industry to the dawn of motion picture + Digital Media filmmaking in the early 1920s. Aside from being the + Entertainment global center of the film and entertainment industry, Los Angeles is the largest radio and television broadcast + Fashion market in the country. This is primarily concentrated in + Furniture/Decorative Arts Burbank, Hollywood and the greater Westside of Los Angeles and has created incomparable synergy and + Industrial Design Services economies of scale for content creators in the region. + Publishing & Printing Entertainment is one of the fastest growing segments of + Toys the Los Angeles economy, growing by 75% from 1992 to + Visual & Performing Arts Providers present. In recent years, the “creative economy” generated 759,000 jobs (direct, indirect and induced) + Fine & Performing Arts Schools generating $56.9 billion in total labor income. 3700 VANOWEN STREET BURBANK OVERVIEW Stable Office Market The Burbank market is largely characterized by Burbank is a uniquely stable office market for entertainment and studio-related companies. While tenants having experienced virtually no major Hollywood is the global symbol of the entertainment out-migration over the last two decades. Any industry, much of the actual production occurs in negative absorption has been caused by new office Burbank. The film industry took root in Burbank in the construction and the film studios relocating from 1920’s when First National Pictures (now Warner Bros.) leased to owned facilities. constructed its studio there in 1926. Columbia quickly followed in 1934, Walt Disney Studios in 1939 and NBC Continued Migration from Hollywood to in 1951. The area remains home to four major film and Burbank television studios- Warner Bros, Disney/ABC, Comcasts’s NBC Universal and Dreamworks Animation. Various The market continues to return to equilibrium smaller film studios including Cartoon Network, following the move of Disney and NBC to owned Nickelodeon, KCET and The Burbank Studios are also properties. Gaming and alternative media continue located in Burbank. These studios act as magnets in to backfill the market as Burbank not only provides a attracting ancillary service providers to the media compelling cost alternative for companies from industry who occupy additional space in the market. Hollywood and the Westside, but also fulfills their desire to be located in the epicenter of the Favorable Legislation to Promote Filming entertainment industry. In recent years the annual funding for California’s film and television tax-credit program more than tripled to Burbank $330 million. This bill helped solidify the already large Q1 2019 Office Highlights amount of filming in Burbank, demonstrated by the rise in issued film permits. 7 MSF 8.6% $3.76 PSF FSG Direct Avg. Asking Base Vacancy Lease Rate 8 AREA OVERVIEW Transportation Infrastructure Approximately 30% of Burbank’s employment is media-related, providing over 60,000 jobs. The Burbank/Tri-Cities corridor offers one of the best transportation systems in Southern California. BURBANK SUBMARKET + This area is intersected by six major freeways providing excellent access for the diverse Tenants are drawn to Burbank for many reasons labor base including: + Burbank is home to the Hollywood/Burbank + 700 media-related companies Airport, a favorite for LA residents when traveling to major western markets such as + 4 Major Studios Seattle, Phoenix, San Francisco and Denver + No City Income Tax + With approximately 4.1 million annual + No City Gross Receipts Tax passengers, the Hollywood/ Burbank Airport + Burbank Police & Safe Environment is the second major airport in the LA basin + Solar Power Rebates + The Hollywood/Burbank Airport is also the only airport in the Greater Los Angeles area + Employee Recruitment and Hiring Assistance with a direct rail connection to Downtown + California Competes Tax Credits Los Angeles + Extensive Film Tax Credits Over the past 5 years, many major creative companies including NYC Film Academy, Legendary, Freemantle, Legal Zoom, Aspect Radio and DC Comics have moved their operations to Burbank from Hollywood and surrounding markets. SITE PLAN BOB HOPE AIRPORT 3700 VANOWEN DISCLAIMER AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or rammellT Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property.