Investment Offering Memorandum
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Investment Offering Memorandum Castle Industrial / Office Building 1101, 03, 05, 07 & 1117 West Isabel Street Burbank, California 91506 47,053 SF Industrial / Office Building LEOLA Commercial, Inc. | 26575 Ruether Ave 2nd Floor | Santa Clarita, California 91350 | www.leolacommercial.com Castle Industrial / Office Building 1101, 03, 05, 07 & 1117 West Isabel Burbank, CA 91506 47,053 SF Office Building BURBANK EMPIRE CENTER VICTORY BLVD BURBANK BLVD LEOLA Commercial, Inc. | 26575 Ruether Ave 2nd Floor | Santa Clarita, California 91350 | www.leolacommercial.com 1. Executive Summary Property Details Lease Summary Financial Indicators Expense Summary CAP Rate Analysis 2. Property Information Subject Property Map Parcel Map Property Photos 3. Market Indicators Rental Market Sales Market 4. Contact Information Table of Contents LEOLA Commercial, Inc. makes no warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Castle Industrial / Office Building 1101, 03, 05, 07 & 1117 West Isabel Burbank, CA 91506 47,053 SF Office Building The information contained herein is strictly confidential. It is intended for the sole party receiving it directly from LEOLA Commercial, Inc., and should not be made available to any other person without the direct consent of LEOLA Commercial, Inc. This marketing proposal has been prepared to provide information to the prospective sellers. It does not, however, purport to present all material information regarding the subject property and it is not a substitute for a thorough investigation by the sellers. LEOLA Commercial, Inc. has not made any investigation, and makes no warranty or representation with respect to the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue or renew its occupancy of the subject property. All market analysis projections are provided for reference purposes only and are based on assumptions relating to general market conditions, competition, and other various market indicators. The information contained in this proposal has been obtained from sources we believe to be reliable; however LEOLA Commercial, Inc. has not conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided herein. Confidentiality and Conditions LEOLA Commercial, Inc. makes no warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Section 1 Executive Summary Property Details Lease Summary Financial Indicators Expense Report CAP Rate Analysis 1 Castle Industrial / Office Building 1101, 03, 05, 07 & 1117 West Isabel Burbank, CA 91506 47,053 SF Office Building Castle Industrial / Office Building West Burbank Blvd and Victory Blvd Minuets to Downtown Burbank, The Empire Center and The Hollywood Burbank Airport Excellent Opportunity to own a hybrid Light Industrial and Office Building in the heart of Burbank Excellent Location, with ease of access to the 5, 101 & 210 Freeway This property has upside in rents and is highly desirable due to it’s proximity to several TV and Movie Studios. Price/SF: $286.91 Construction: Masonary Office SF: 31,982+/- Sales Price: $13,500,000 Year Built: 1989 Industrial SF: 15,071+/- Approx. Taxes: $168,750 Sprinkled: Yes Included In Available: N/A Property SF: 47,053 +/- Ground Lvl Drs: 6 - 10’w x 12’h Show Room: N/A CAP Rate: 4.32% Dock High: N/A Included In Available: N/A Gross Income: $824,857 Clear Height: 22 Ft Possession: TBD Total Expenses: $241,749 Heat/Cool: HVAC To Show: Call Agent NOI: $583,108 Roof Type: Lam Glue Region: Burbank Property Lot Size: 54,786 Parking Ratio: 3.70/1,000 Spcs: 48 APN: 2449-011-043 Yard: Fncd/Pvd Power: 1200 Amps 480-480 V 3 Phase APN: 2449-011-020 Zoning: C4, M2 Specific Use: Light Industrial / Office Property Details LEOLA Commercial, Inc. makes no warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Castle Industrial / Office Building 1101, 03, 05, 07 & 1117 West Isabel Burbank, CA 91506 47,053 SF Office Building Market Rent Percentage Securtiy Increase Lease Lease Unit Tenant Use Type SF Rent CAM Rent/SF (extension)/ Market Rent Timeline to Extend of Build Deposit Date Expirations Extensions SF two (2) five 6 months prior to end of 1101 Starburns Inc. Industrial 15,071 32% $18,150.00 $2,166.67 $18,695.00 $1.20 $2.25 $33,909.75 Dec. 1, 2020 Nov. 30, 2021 (5) yr lease (May) 1101, 03, 05, March 21, one (1) three 6 months prior to end of Technicolor Office 21,982 47% $34,637.31 - $42,205.44 $1.58 $1.62 $35,676.43 April 1, 2020 07 2021 (3) yr lease (Sept) March 21, 1117 Technicolor Office 10,000 21% $15,757.12 - $13,900.00 $1.58 $2.25 $22,500.00 2021 Total: 47,053 100% Total Monthly Rent: $68,544.43 $2,166.67 $74,800.44 $1.45 $2.04 $92,086 Annual Rental Income: $822,533 $26,000 $17.42 $24.49 $1,105,034 Lease Details: Landlord Paid Expenses: • All leases are AIR Standard Industrial/Commercial Multi-Tenant Lease - Gross, both are long term tenants and • Trash - Only for Landscaping and Extrior of property are on executed lease extensions. • Water • Fire Monitoring System • Starburns per the extension of lease is responsible for future increases in property taxes, over the base year, • Property Insurance that the original lease was signed. • Roof / Structure • Both Tenants pay there own electric. Owner is responsible for exterior lighting, fire monitoring, water and • A/C Units exterior cleaning and landscaping. 2020 Completed Repairs • Technicolor option to extend lease rent in 2021 is $35,676.43. There is no option to extend for the 1117 W • Fire Monitoring System - New Isabel. • A/C Units - New every roof unit replaced ProForma Income Schedule • 1117 Isabel - New Sprinkler System LEOLA Commercial, Inc. makes no warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Castle Industrial / Office Building 1101, 03, 05, 07 & 1117 West Isabel Burbank, CA 91506 47,053 SF Office Building Technicolor and its family of creative studios are honored to work on some of the industry’s most acclaimed movies, shows and campaigns across the industries we serve. With a history of award-winning talent, we continue to push the boundaries of what entertainment can be; check out some of our talent’s and creative partners' recent nominations and awards below. https://www.technicolor.com Starburns Industries is an innovative and imaginative full-service production company, specializing in stop-motion, traditional 2D, and CG animation as well as live-action production. Starburns is a creator driven studio, whose founders are responsible for the creation of Adult Swim series like “Moral Orel”, “Mary Shelley’s Frankenhole” and “Rick & Morty”; as well as the Academy Award nominated animated film “Anomalisa” and the upcoming Netflix animated feature film “Bubbles”. Launched in the summer of 2010 to produce Emmy Award© winning “Community” holiday special, Starburns was founded by Dan Harmon, Dino Stamatopoulos, Joe Russo II, James Fino and Duke Johnson in order to create a workspace that gives the support and freedom to original and creative people to make content that is funny, strange, sad, and beautiful. https://www.starburnsindustries.com In addition to developing original content, Starburns Industries creates groundbreaking animation for film, television, advertising, gaming and new media distribution. Spanning two buildings in Burbank and over thirty thousand square feet of production space, facilities include a dedicated puppet fabrication shop, massive set construction space, 3D printing and prototyping, state-of-the-art Tenants voiceover recording and ADR studio, motion control, editorial, VFX and complete post-production and delivery services.