BRANDON MICHAELS GROUP SOUTHERN CALIFORNIA'S PREMIER SALES TEAM
DE SOTO AVE
SHERMAN WAY
20900 & 20914 Sherman Way, 7117 & 7127 De Soto Avenue Canoga Park, CA 91303 INVESTMENT ADVISORS BRANDON MICHAELS Senior Managing Director of Investments Senior Director, National Retail Group Tel: (818) 212-2794 Fax: (818) 212-2710 [email protected] License: CA #01434685 www.BrandonMichaelsGroup.com TEAM MEMBERS Sean Brandt Vaughn Brown Ben Brownstein Nicole Cottrell Andrew Leff Matthew Norona Lauren Sackler Zachary Saloff Steven Schechter Austin Sreden
CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party re- ceiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified infor- mation to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for aw thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminat- ing substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the finan- cial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we be- lieve to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Mar- cus & Millichap. All rights reserved. NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The pres- ence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the pur- pose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DE- TAILS. SPECIAL COVID-19 NOTICE
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.) TABLE OF CONTENTS 1 2 3 PROPERTY OVERVIEW FINANCIAL ANALYSIS AREA OVERVIEW PROPERTY OVERVIEW
EXECUTIVE SUMMARY TRILLIUM TOWERS
The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively represent for sale The Sherman Way & DeSoto Portfolio, a well located collection of four parcels of land ideally located on the Southwest signalized corner of Sherman Way and DeSoto Avenue in the strong West San Fernando Valley sub-market of Canoga Park, CA. The offering consists of 20900 & 20914 Sherman Way and 7117 & 7127 De Soto Avenue. The properties along Sherman Way are separated from the parcels along De Soto Avenue by an alley. The subject property benefits from excellent visibility and frontage along two main West San Fernando Valley retail thoroughfares with 199 feet of linear frontage along Sherman Way and 114 feet of linear frontage along DeSoto Avenue and has excellent parking with a total of 109 parking spaces, a parking ratio of 4.38 per 1,000. The portfolios centralized location provides easy access to the Interstate 101 Ventura Freeway and is less than one mile from the Warner Center, the central business district of the San Fernando Valley and one of Los Angeles’ largest urban developments.
The Sherman Way & DeSoto Portfolio commands a strong presence at the corner of Sherman Way and DeSoto Avenue, a premier signalized intersection which experiences daily traffic counts north of 38,700 vehicles per day. 20900 Sherman Way is a vacant 9,977 square foot retail building, currently undergoing renovations that will be delivered in vanilla shell condition. 20914 Sherman Way is a 14,900 square foot retail building that is currently leased to 99 Cents Only through January 2023. A large one sided 48x14 billboard sits above 20914 Sherman Way, which generates an additional income stream, but is able to be terminated by ownership in the event of development at the site.
The properties which front Sherman Way are situated on a total of 44,700 square feet of land. The portion of the lot which features the retail buildings are zoned [Q]C2-1VL-CDO-RIO, which make up a total of approximately 24,062 square feet of land. The surplus land behind the vacant corner retail building at 20900 Sherman Way is zoned [Q] R1-1VL-CDO-RIO, and totals 8,838 square feet of land. The excess land behind the 99 Cents Only is zoned [Q]P-1VL- CDO-RIO and totals 11,785 square feet of land.
The parcels on De Soto Avenue total 26,248 square feet and are zoned (T)(Q)CR-1XL-RIO. They are currently utilized as parking lots. 7127 De Soto Avenue is comprised of 17,499 square feet of land, and 7117 De Soto Avenue constitutes 8,749 square feet of land.
The portfolio offers a significant opportunity to owner-users, value-add investors, developers, and covered land buyers. 20900 Sherman Way is vacant and while 99 Cents Only has a lease in place, they are currently not operating, creating a unique opportunity for an owner-user to occupy a portion or all of the retail space on a prime signalized corner with excellent parking. Value-add investors would have the opportunity for immediate upside through re- leasing a portion or all of the subject property.
The Sherman Way & DeSoto Portfolio is located in a Tier 1 Transit Oriented Community (TOC), which provides density bonus incentives and reduced parking requirements, creating a tremendous opportunity to develop a the 1.63 acres of land at a prime West San Fernando Valley signalized corner.
6 WARNER CENTER TOWERS (1.9 Million SF Office Towers)
WARNER CENTER
20900 & 20914 Sherman Way, 7117 & 7127 De Soto Avenue Canoga Park, CA 91303 INDEPENDENCE AVE
DE SOTO AVE
SHERMAN WAY
A WELL-LOCATED HIGH TRAFFICKED WEST SAN FERNANDO VALLEY SIGNALIZED CORNER LOCATION CONSISTING OF 24,877 SQUARE FEET OF STREET RETAIL IDEALLY SITUATED ON 1.63 ACRES (70,948 SQUARE FEET) OF LAND
7 CANOGA PARK WARNER CENTER TOWERS (1.9 Million SF Office Towers) OWENSMOUTH AVE
UPTOWN AT WARNER CENTER $4 billion mixed-use development
O R AN GE LIN E BU ($1.5 billion capital infusion - 1,400 SWAY residential units, 2 hotels, 864,000 SF VICTORY BLVD Class A office & retail, Entertainment and Sports Center)
WARNER CENTER TOWERS 1.9 million SF of Class A office towers
ERWIN ST
W OXNARD ST
CANOGA AVE WARNER CENTER
TOPANGA CANYON BLVD BURBANK BLVD
VENTURA FWY VENTURA BLVD 8 WINNETKA
20900 & 20914 Sherman Way, 7117 & 7127 De Soto Avenue Canoga Park, CA 91303
SHERMAN WAY
TRILLIUM TOWERS
VANOWEN ST DE SOTO AVE
O R AN GE LIN E BU SWAY VICTORY BLVD
VARIEL AVE
DE SOTO AVE
SHERMAN WAY & DE SOTO PORTFOLIO 9 20900 & 20914 Sherman Way, 7117 & 7127 De Soto Avenue Canoga Park, CA 91303
SHERMAN WAY
DE SOTO AVE
INVESTMENT HIGHLIGHTS
IDEAL OWNER-USER OR VALUE-ADD EXCELLENT CANOGA PARK LOCATION INVESTMENT OPPORTUNITY
Ideally Located at the SW signalized corner of Sherman The property is located on four separate parcels and is Way and De Soto Avenue, a prime signalized intersection comprised of a total of 1.63 acres of land with daily traffic counts north of 38,700 vehicles per day 24,877 square feet of well-positioned street retail with Ideally Located less than one mile from the Warner Center, significant upside the central business district of the San Fernando Valley Owner-Users have the ability to occupy a portion or all of Centralized West San Fernando location with easy access the existing structure to the Interstate 101 Ventura Freeway and within close Investors may see immediate upside in stabilizing the proximity to significant new residential development property
10 1.63 ACRES OF LAND CREATES PRIME DEVELOPMENT MULTI-BILLION DOLLAR SUB-MARKET COMPLETE WITH OR COVERED LAND OPPORTUNITY RETAIL ATTRACTIONS AND PREMIERE OFFICE HUB
Located within a Tier 1 TOC which provides significant density Close proximity to the newly built, open-air retail center bonus incentives and reduced parking requirements “The Village” at Westfield Topanga and Westfield Topanga, Developers have the opportunity to develop on 1.63 acres of land encompassing over 2.7 million square feet of retail space with in the prime Canoga Park submarket over 250 top brands, restaurants and entertainment options Close proximity to the Westfield Promenade, a $1.5 billion STRONG IMMEDIATE DEMOGRAPHICS AND renovation that includes retail, Class A office, two hotels, 14,000 DENSE SURROUNDING POPULATION residential units, and an entertainment and sports center Within close proximity to Uptown at Warner Center is Dense immediate population with over 49,800 people located receiving a $3 billion capital infusion to complete a mixed-use within one mile of the subject property and over 484,000 people development within five miles Local retailers include: Apple, Nordstrom, Neiman Marcus, Over 15,000 households within one mile of the subject property Target, Macy’s,. REI, Costco, Best Buy Electronics, Crate & and over 166,800 households located within a 5 miles Barrel Average annual income of just north $72,000 within one mile of Local restaurants include: Roy’s Asian Fusion, Fleming’s the subject property Steakhouse, California Pizza Kitchen, Cheesecake Factory, Over $5,000,000,000 of total consumer spending in the immediate Chipotle, Il Fornaio, Pizza Rev, Guacho Grill, Coffee Bean & Tea area Leaf, P.F. Changs and many more Approximately 40,000 employees work within Warner Center. IDEALLY LOCATED WITHIN CLOSE PROXIMITY TO Major employers include HealthNet Inc., Zenith Insurance, THE WARNER CENTER Kaiser Permanente Hospital, Pratt & Whitney, and Pierce College The Warner Center is, one Los Angeles’ largest urban developments which is slated to have 20,000 new residential units, 21,000 new households, 80,000 new jobs, and an additional 37 million square feet of business and residential buildings by 2035. Uptown at Warner Center is receiving a $3 billion capital infusion to complete a mixed-use development Near to Westfield Promenade, which is set to undergo a $1.5 billion renovation Thousands of new residential units coming online with a strong desire to attract millennials Recent office conversions hope to attract top national companies to enhance growth and opportunity
11 LOCATION OVERVIEW The Sherman Way & DeSoto Portfolio is well-located in Canoga Park, CA, a prime West San Fernando Valley submarket that features strong immediate demographics and strong growth projections. There are over 49,000 people within one mile of the subject property, over 241,000 people within three miles, and over 484,000 people within five miles, creating a dense immediate sub-market. The average household income within one, three, and five miles is $72,798, $94,273, and $104,567 respectively. The median home value within one, three, and five miles is $493,334, $631,742 and $716,002 respectively. The Sherman Way Portfolio is ideally located less than one mile from the Warner Center, one of the fastest growing submarkets nationally. This centralized West San Fernando Valley location offers direct access to the Interstate 101 Ventura Freeway and is located less than two miles from Westfield Topanga & The Village. Warner Center boasts high- end demographics, dense immediate population, high barriers to entry and strong market fundamentals. Known as the central business district of the San Fernando Valley, Warner Center is one of Los Angeles’ largest urban developments, offering a sweeping complex of office parks, high-rise office towers, apartments, and shopping centers including Westfield Topanga and the Village at Westfield Topanga.
The multi-billion-dollar submarket is home to substantial development, including the $1.5 billion renovation the Westfield Promenade and the $3.5 billion Uptown at Warner Center. The Westfield Promenade will include retail, Class A office, two hotels, 14,000 residential units, and an entertainment and sports center. Uptown at Warner Center is a one-of-a-kind development consisting of 47 acres creating a state of the art “live/work/play” environment. The walkable community will feature a combination or retail and residential uses including retail, office, hotel, research & development, assisted living and community center and a 5-acre open park.
Significant growth is projected in the immediate area, with 37 million square feet of business and residential buildings, 14 million square feet of non-residential building area, 20,000 residential units, and 80,000 new jobs projected by 2037. Thousands of new residential units are coming online, joined by millions square feet of existing and proposed retail and class A office, as well as creative office space.
IDEALLY LOCATED LESS THAN ONE MILE FROM THE WARNER CENTER, ONE OF LOS ANGELES’ LARGEST URBAN DEVELOPMENTS WHICH IS SLATED TO HAVE 20,000 NEW RESIDENTIAL UNITS, 21,000 NEW HOUSEHOLDS, 80,000 NEW JOBS, AND AN ADDITIONAL 37 MILLION SQUARE FEET OF BUSINESS AND RESIDENTIAL BUILDINGS BY 2035
12 CANOGA PARK
SHERMAN WAY
20900 & 20914 Sherman Way, 7117 & 7127 De Soto Avenue Canoga Park, CA 91303
DE SOTO AVE
13 PROPERTY HIGHLIGHTS
24,877 SQUARE FEET OF STREET RETAIL IDEALLY SITUATED ON 1.63 ACRES (70,948 SQUARE FEET) OF LAND WITH A MULTITUDE OF POTENTIAL OPTIONS IN CANOGA PARK, CA
20900 & 20914 Sherman Way, 7117 & 7127 De Soto Avenue Canoga Park, CA 91303
Price: Request For Offer
Total Building SF: 24,877 SF
Total Land SF: 70,948 SF 2112-031-021, 2112-031-020, APN Numbers: 2112-031-024, 2112-031-034 [Q]C2-1VL-CDO-RIO, [Q]P-1VL-CDO-RIO, [Q] Zoning: R1-1VL-CDO-RIO, (T)(Q)CR-1XL-RIO Parking: 109 Parking Spaces; 4.38 per 1,000 SF TOC: Tier 1 Property Type: Retail; Parking Lot
14 PARCEL #4 (T)(Q)CR-1XL-RIO: 17,499 SF
PARCEL #3 (T)(Q)CR-1XL-RIO: 8,749 SF
PARCEL #1 PARCEL #2 [Q]R1-1VL- [Q]P1-1VL-CDO- CDO-RIO: RIO: 11,785 SF 8,838 SF
DE SOTO AVE PARCEL #1 PARCEL #2 [Q]C2-1VL- [Q]C2-1VL- CDO-RIO: CDO-RIO: 10,319 SF 13,758 SF
20900 Sherman Way 7117 De Soto Avenue
Building SF: 9,977 SF Parking Spaces: 19 Spaces Land SF: 19,157 SF Land SF: 8,749 SF APN Number: 2112-031-021 PARCEL #1 PARCEL PARCEL #3 PARCEL APN Number: 2112-031-034 [Q]C2-1VL-CDO-RIO, Zoning: [Q]R1-1VL-CDO-RIO Zoning: (T)(Q)CR-1XL-RIO
20914 Sherman Way 7127 De Soto Avenue
Building SF: 14,900 SF Parking Spaces: 43 Spaces Land SF: 25,543 SF Land SF: 17,499 SF APN Number: 2112-031-020 PARCEL #2 PARCEL PARCEL #4 PARCEL APN Number: 2112-031-024 [Q]C2-1VL-CDO-RIO, Zoning: [Q]P-1VL-CDO-RIO Zoning: (T)(Q)CR-1XL-RIO
15 FOUR PARCELS IDEALLY LOCATED ON 1.63 ACRES (70,948 A TOTAL OF 109 PARKING EXCELLENT VISIBILITY AND FRONTAGE THE SOUTHWEST SIGNALIZED CORNER SQUARE FEET) OF LAND SPACES, A PARKING RATIO ALONG TWO MAIN WEST SAN FERNANDO OF SHERMAN WAY AND DESOTO AVENUE LOCATED IN A TIER 1 TOC OF 4.38 PER 1,000 SF VALLEY RETAIL THOROUGHFARES
16 WARNER CENTER
WARNER CENTER TOWERS (1.9 Million SF Office Towers)
20900 & 20914 Sherman Way, 7117 & 7127 De Soto Avenue Canoga Park, CA 91303 DE SOTO AVE
SHERMAN WAY
EXCELLENT VISIBILITY AND FRONTAGE A PREMIER SIGNALIZED INTERSECTION CENTRALIZED LOCATION PROVIDES EASY ACCESS ALONG TWO MAIN WEST SAN FERNANDO WITH DAILY TRAFFIC COUNTS NORTH OF TO THE INTERSTATE 101 VENTURA FREEWAY AND IS VALLEY RETAIL THOROUGHFARES 38,700 VEHICLES PER DAY LESS THAN ONE MILE FROM THE WARNER CENTER
17 NEARBY DEVELOPMENT 20900 & 20914 Sherman Way, 7117 & 7127 De Soto Avenue Canoga Park, CA 91303
01 MIRA Apartments • Newly completed six-story building which features 174 apartments with parking for 245 vehicles. 1 5 • The unit mix is comprised of studio, one and two bedroom apartments priced between $2,069 and $3,275 per month. 4 • Located approximately one mile from the subject property. 8 3 2 02 Hanover Warner Center 9 • Seven story building which will feature 394 units with parking for 509 vehicles. The unit mix will be comprised of studio, one, two, and three bedroom 6 apartments. The $100 million project is scheduled for completion in 2021. • Located less than one mile from the subject property.
03 Vert at Warner Center • Six story building comprised of 271 studio, one, two, and three bedroom apartments with parking for 309 vehicles. The amenity-rich project will feature a swimming pool, fitness center, and multiple roof 7 decks. • Located approximately one mile from the subject property.
18 (T)(Q)CR-1XL-RIO
04 21001 W Kittridge Street • Located on the northwest corner of Kittridge Street and Independence Avenue, the proposed 5 story development would feature 275 units, comprised of 20900 & 20914 Sherman Way, 7117 & 7127 De Soto Avenue Canoga Park, CA 91303 studio, one and two bedroom units wrapping a 405 car parking garage. • Located less than one mile from the subject property.
05 Yaya Vanowen • The project will consist of 6,500 square feet of ground-floor retail, with 101 units comprised of studio, one and two bedroom apartments with 121 parking spaces. • Located less than one mile from the subject property.
Sherman Way & De Soto Ave
1 Mira 06 6041 Variel Ave
2 Hanover Warner Center • This project consists of two phases. The first phase is a 7-story mixed-use development, including 274 3 Vert at Warner Center residential and live-work units with five stories of 4 21001 Kittridge St Type III wood-framed construction over a two-level parking structure plus basement of Type I podium 5 Yaya Vanowen level concrete construction with an additional story 6 6041 Variel Ave of below grade parking.
7 Clarendon • Located approximately 1.7 miles from the subject property. 8 The Q Topanga
9 The Q Variel
19 START FINISH ADDRESS STATUS DEVELOPER UNITS STORIES YEAR YEAR
Mira 1 21425 Vanowen St Completion CityView 174 7 2017 2020 07 Clarendon Canoga Park, CA 91303 • Designed by Architects Orange, the project spans Hanover Warner Center a 4.3-acre site a short distance south of the 101 Under The Hanover 6636 Variel Ave 394 7 2019 2021 Freeway. Plans call for open space amenities, 2 Construction Company including a fitness center, sports courts, a business Canoga Park, CA 91303 center, and a club room • Located approximately 4.2 miles from the subject Vert at Warner Center Evolution Strategic property. 6606 N Variel Ave Completion 277 7 2017 2020 3 Partners Woodland Hills, CA 91303
21001 Kittridge St Under Fairfield Residential 275 5 2020 2022 08 The Q Topanga 4 Canoga Park, CA 91303 Construction • This project will feature 347 studio, one-, and two- bedroom apartments in addition to 20,000 square Yaya Vanowen feet of ground-floor commercial space and a 656- Under 21121 Vanowen St - 101 7 2019 2021 car garage. Newman Garrison + Partners designed 5 Construction the contemporary podium-type building. Canoga Park, CA 91303 • Located approximately 2.1 miles from the subject property. 6041 Variel Ave Under BCEGI International 263 7 2018 2021 6 Woodland Hills, CA 91367 Construction Company
The Q Variel Clarendon 09 7 22121 Clarendon St Completion Amcal Housing 335 5 2017 2020 • The project consists of a seven-story building Woodland Hills, CA 91367 which will feature 241 studio, one-, and two- bedroom apartments above a podium featuring The Q Topanga 50,000 square feet of commercial space and a 279- 6263 Topanga Canyon Under California Home 347 7 2017 2021 car garage. 8 Blvd Construction Builders • Located approximately 1.5 miles from the subject Woodland Hills, CA 91367 property. The Q Variel Under California Home 6200 Variel Ave 241 7 2017 2020 9 Construction Builders Woodland Hills, CA 91367
20 START FINISH ADDRESS STATUS DEVELOPER UNITS STORIES #1. Mira #2. Hanover Warner Center #3. Vert at Warner Center YEAR YEAR
Mira 1 21425 Vanowen St Completion CityView 174 7 2017 2020 Canoga Park, CA 91303
Hanover Warner Center Under The Hanover 6636 Variel Ave 394 7 2019 2021 2 Construction Company Canoga Park, CA 91303
Vert at Warner Center Evolution Strategic 6606 N Variel Ave Completion 277 7 2017 2020 3 Partners Woodland Hills, CA 91303 #4. 21001 Kittridge St #5. Yaya Vanowen #6. 6041 Variel Ave
21001 Kittridge St Under Fairfield Residential 275 5 2020 2022 4 Canoga Park, CA 91303 Construction
Yaya Vanowen Under 21121 Vanowen St - 101 7 2019 2021 5 Construction Canoga Park, CA 91303
6041 Variel Ave Under BCEGI International 263 7 2018 2021 6 Woodland Hills, CA 91367 Construction Company
#7. Clarendon #8. The Q Topanga #9. The Q Variel Clarendon 7 22121 Clarendon St Completion Amcal Housing 335 5 2017 2020 Woodland Hills, CA 91367
The Q Topanga 6263 Topanga Canyon Under California Home 347 7 2017 2021 8 Blvd Construction Builders Woodland Hills, CA 91367
The Q Variel Under California Home 6200 Variel Ave 241 7 2017 2020 9 Construction Builders Woodland Hills, CA 91367
21 FINANCIAL ANALYSIS
RENT ROLL LEASE PRO FORMA PRO FORMA TENANT SF SF% LEASE EXP OPTIONS* RENT RENT/SF START RENT/SF RENT Vacant - Former WSS 9,977 40% $2.00 $19,954.00 99 Cents Only * 14,900 60% 3/1/03 1/31/23 ** $21,916.13 $1.47 $1.54 $22,959.75 Billboard - CBS Outdoor 12/1/00 12/1/30 *** $1,694.00 $1,694.00 Total 24,877 100% - - - $21,916.13 $42,913.75
* Tenant is currently paying full rent but has vacated the unit. ** Two (2) - Five (5) Year - First option period is at 95% of FMV; Second option period is at 110% of the base rent established in first option period. *** Lease automatically renews for subsequent terms of 15 years unless either party terminates the lease sixty (60) days prior to the end of the Term or Rental Term, however, Tenant shall have the right to terminate this Lease during the Term or any Renewal Term. In the event Landlord elects to construct or develop a permanent building on the portion of the Premises occupied by Tenant’s Structure, the Lease shall terminate thirty (30) days after Tenant receives written notice and copy of the building permit from Landlord. 99 CENTS ONLY RENT SECHEDULE 2/1/2020 - 1/31/2021 $21,916.13 2/1/2021 - 1/31/2022 $22,959.75 2/1/2022 - 1/31/2023 $22,959.75 Option # 1 - 2/1/2023 - 1/31/2028 95% of FMV Option #2 - 2/1/2028 - 1/31/2033 110% of the base rent established in first option period ANNUALIZED OPERATING DATA INCOME AND EXPENSE CURRENT PRO FORMA EXPENSE BREAKDOWN PER YEAR PER SF Scheduled Lease Income $262,994 $514,965 Taxes - Current Property Taxes* $46,790 $1.88 NNN Charges $50,686 $84,626 Insurance $15,879 $0.64 Effective Gross Income $313,680 $599,591 Electricity $249 $0.01 Expenses $84,626 $84,626 Gardening/Landscaping $9,476 $0.38 Billboard Income $20,328 $20,328 Parking Lot Repairs $2,575 $0.10 Net Operating Income $249,382 $535,293 Roof Repairs $5,356 $0.22 Sweeping $4,301 $0.17 TOTAL $84,626 $3.40 / $0.28
* Property Taxes will be Reassessed Based on New Purchase Price
24 THE OFFERING
Sherman Way & De Soto Portfolio 20900 & 20914 Sherman Way ADDRESS 7117 & 7127 De Soto Avenue Canoga Park, CA 91303
PRICE Request For Offer
24,877 SF TOTAL BUILDING SF 20900 Sherman Way: 9,977 SF 20914 Sherman Way: 14,900 SF
70,948 SF 20900 Sherman Way: 19,157 SF TOTAL LAND SF 20914 Sherman Way: 25,543 SF 7117 De Soto Ave: 8,749 SF 7127 De Soto Ave: 14,499 SF
20900 Sherman Way: 2112-031-021 20914 Sherman Way: 2112-031-020 APN NUMBERS 7117 De Soto Ave: 2112-031-034 7127 De Soto Ave: 2112-031-024
20900 Sherman Way: [Q]C2-1VL-CDO-RIO, [Q]R1-1VL-CDO-RIO 20914 Sherman Way: ZONING [Q]C2-1VL-CDO-RIO, [Q]P-1VL-CDO-RIO 7117 De Soto Ave: (T)(Q)CR-1XL-RIO 7127 De Soto Ave: (T)(Q)CR-1XL-RIO
25 AREA OVERVIEW
CANOGA PARK, CA
AN AFFLUENT NEIGHBORHOOD IN THE WEST SAN FERNANDO VALLEY
Canoga Park is a neighborhood in the San Fernando Valley region of Los Angeles, California, United States. Before the Mexican–American War, the district was part of a rancho, and after the American victory it was converted into wheat farms and then subdivided, with part of it named Owensmouth as a town founded in 1912. It joined Los Angeles in 1917 and was renamed Canoga Park on March 1, 1931, thanks to the efforts of local civic leader Mary Logan Orcutt.
Canoga Park is bordered by Woodland Hills on the south, West Hills on the west, Chatsworth on the north, and Winnetka on the east.
Bell and Dayton Creeks flowing from the Simi Hills, and Arroyo Calabasas (Calabasas Creek) from the Santa Monica Mountains are several of the headwaters of the Los Angeles River that originate in the western San Fernando Valley that flow through Canoga Park. The Los Angeles River itself begins at the confluence of Calabasas Creek and Bell Creek behind Canoga Park High School. These and other small creeks supply stormwater and suburban runoff water to the Los Angeles River, and several are considered year round creeks. Although the creeks are now channeled and run within concrete walls, they do form a significant urban wildlife landscape and contribute to the population of indigenous wildlife left within the San Fernando Valley.
The 2000 U.S. census counted 53,227 residents in the 4.35-square-mile Canoga Park neighborhood—or 12,240 people per square mile, about an average population density for the city. In 2008, the city estimated that the population had increased to 60,578. In 2000, the median age for residents was 30, also about average for city and county neighborhoods.
28 DISTANCE TO NEARBY CITIES:
• Warncer Center: 2.5 Miles • Winnetka: 2.0 Miles • Woodland Hills: 3.7 Miles • Chatsworth: 3.6 Miles • Reseda: 4.5 Miles
29 WARNER CENTER, CA
A MULTI-BILLION DOLLAR SUBMARKET
Warner Center is one of Los Angeles’ largest urban developments, offering a sweeping complex of office parks, high-rises, apartments, and shopping centers. It is home to approximately 20,000 residents and employs more than 50,000 people. Known as the central business district of the San Fernando Valley, the district combines a mix of office buildings, hotels, world class restaurants, shopping centers, and business parks.
The forner Rocketdyne site, named Uptown at Warner Center, located at Vanowen Street and Owensmouth Avenue is slated for a $4 billion, six million square foot development by United Technologies Corporation and Boston Global. The six million square feet project will include 3.95 million square feet of residential space and 1.1 million square feet of Class A office space. The project will also include 310,000 square feet of cultural and public space, 240,000 square feet of assisted living space, 200,000 square feet of high-end retail, and 155,000 square feet of hotel space.
Warner Center is poised to undergo profound changes as commercial development expands over the next two decades. With the advent of the Warner Center 2035 Plan, Warner Center is quickly becoming one of the fastest growing sub-markets in the country.
30 The Trillium is among the most prestigious office Built in stages between 2001 and 2005, LNR Warner Warner Center Towers is a 1,937,959 square foot campuses in Woodland Hills combining for 660,669 Center is comprised of four five-story buildings and office campus comprised of six prestigious office square feet of Class-A office space. The Trillium one three-story building containing approximately towers strategically located in the heart of Warner Center. It is one of Los Angeles' largest office features an attractive stone and tinted glass exterior, 808,274 square feet in total. Tenants include Health campuses and offers a park-like setting with accentuated by lavish interior finishes and on-site Net, UMG Recordings and Viking River Cruises. landscaped plazas, attractive fountains, high-end amenities. amenities, and breathtaking views.
MAJOR TENANTS MAJOR TENANTS MAJOR TENANTS • ADP, LLC • Kaiser Permanente • AIG • CGI Strategies • Wells Fargo Bank • Morgan Stanley • Zurich North America • Merrill Lynch • KPMG LLP • Blue Shield of California • Bank Of America Mortgage • Union Bank • Goldman, Magdalin & Krikes, LLP • Anthem Blue Cross • Banc of California • Black Compean & Hall LLP • Goldco • Regal Cinemas
31 WARNER CENTER, CA
ius rad ile m MAJOR CAPITAL INFUSION 5 Westfield’s Promenade 2035 CANOGA Estimated $1.5 billion capital infusion 3 m ile PARK r ad Uptown at Warner Center iu s $3-4 billion capital infusion WEST s HILLS diu Brings entertainment, culture, sporting events to the heart of the San ra e RESEDA il WINNETKA m Fernando Valley activating residents to live, work, shop, stay and play.
1 SIGNIFICANT GROWTH PROJECTIONS 21,000 new households and 80,000 new jobs projected in Warner Center by 2035 combined with an additional 37 million square feet of business WOODLAND TARZANA and residential buildings and 20,000 residential units HILLS ENCINO EXPEDITED APPROVAL PROCESS Developers conforming to Specific Plan Urban Design guidelines may CALABASAS process approvals which City of Los Angeles estimates of 4-6 months from complete project submission.
PREMIER BUSINESS HUB WARNER CENTER BOUNDARIES Upscale community containing well-educated and professional workforce, Warner Center is the central business district of the San Fernando Valley. Fortune 500 Companies Major office towers • Walt Disney Company • Warner Center Towers • Amgen Inc. • LNR Warner Center • Health Net Inc. • Trillium Towers • Avery Dennison Corp • Farmers Plaza
32 37 3 MILLION SF 80,000 MILLION SF of high-end retail and entertainment including Westfield's Promenade, new jobs created with Warner of business and residential buildings Westfield Topanga, and The Village Center 2035 added to Warner Center by 2035
OVER 8,000 quality residences and growing $91.5K 60% Estimated average median household of Canoga Park' residents have a bachelor's income in Canoga Park degree or higher.
33 WARNER CENTER 2035
1 $93 MILLION 264 UNIT MULTIFAMILY COMPLEX Location: 6301 De Soto Avenue MG Properties Group - October 2018
2 389 UNIT MULTIFAMILY COMPLEX Location: 21200 Oxnard Street Bolour and Associates - December 2018 WARNER
3 1.27-MILLION SQ.FT. MIXED-USE (OFFICE & SINGLE UNITS) CENTER Location: 21240 W Burbank Boulevard +RESTAURANT +HOTEL Northrop Grumman - December 2018 2035 4 $157 MILLION 263 UNIT MULTIFAMILY COMPLEX
+RESTAURANT Location: 6250 N. Canoga Avenue +SWIMMING POOL +FITNESS CENTER LaSalle - July 2018
5 $100 MILLION 394 UNIT MULTIFAMILY COMPLEX 7 $1 BILLION MIXED-USE (RESIDENTIAL, OFFICE, & RETAIL) Location: 6636 Variel Avenue + 228 HOTEL ROOMS Location: 21031 Warner Center Lane + 1.25 MILLION SQ.FT OFFICE, Hanover Company - June 2018 RETAIL, AND RESTAURANT. Adler Realty Investments - April 2018
6 $1.5 BILLION 1,400 HOUSING UNITS, TWO HOTEL 8 352 UNIT, 25,000 SQ.FT. OFFICE, & 13,000 SQ.FT. RETAIL +1 ACRE PUBLIC SQUARE Location: 6100 Topanga Cannyon Blvd Location: De Soto Avenue & Erwin Street + PARKS, COURTYARDS Developer Westfield California Home Builders - November 2017
34 3
NORTHROP GRUMMAN SITE 5 A 1.27 million-square-foot development plan that would bring 1 566 independent living units to Warner Center. 6636 VARIEL AVE
A new seven-story residential project CARILLON APARTMENT HOMES CANOGA AVENUE with 271 apartments above a parking structure. A class A, 264-unit multifamily property in Woodland Hills, has sold 9 for $93 million or $352,272 per unit.
UPTOWN AT WARNER CENTER
$4 billion mixed-use development 7
21031 WARNER CENTER LN A planned 24-acre complex in Warner Center could bring about 1,000 apartments and condos, a 24-story hotel, and a trio of 15-story 4 office buildings
TRIANA APARTMENT VANOWEN STREET A 362-unit residential complex in the TOPANGA CANYON BOULEVARD Warner Center. 8
CALIFORNIA HOME BUILDERS SITE
A combined 588 units of housing and 66,000 square feet of commercial space.
2
21200 OXNARD ST
A 52,581-square-foot, single-story flex commercial building on 3 acres ERWIN STREET in Woodland Hills. 6
OWENSMOUTH AVENUE OXNARD STREET ($1.5 billion capital infusion - 1,400 residential units, 2 hotels, 864,000 SF VICTORY BOULEVARD Class A office & retail, Entertainment and Sports Center)
35 WESTFIELD PROMENADE 2035
$1.5 BILLION CAPITAL INFUSION PROJECT SUMMARY Westfield's new mixed use complex set to replace the aging Promenade shopping mall in Woodland • 1,400 residential units Hills. Now, the Australian developer has released new details about the project, which will bring • 272-room hotel and 300-room hotel 1,400 units of housing and two hotels to Warner Center. • 150,000 square feet of creative office space • 470,000 SF of Class A office The redevelopment is part of a wave of projects spurred by the new Warner Center 2035 plan, which • 244,000 SF of retail was designed to reinvent the western Valley’s downtown as a more urban live-work community. • 15,000 seat Entertainment & Sports Center • More than seven acres of open space including: two acres of open space at ground level with approximately 500 trees and more than 100 of those trees along street frontage; along with approximately five acres of elevated open space featuring rooftop gardens and landscaping ECONOMIC BENEFITS atop nearly every building. • A lush and green Promenade Square will serve as the heart of the neighborhood, a gathering Promenade 2035 represents an anticipated $1.5 billion place to relax and will play host to a range of community activities. Pocket parks, public spaces long term investment in the valley as well as courtyards, called the Gardens, will also offer more intimate gathering spaces. • Residential opportunities range from work/live studios to one, two and three bedroom DURING CONSTRUCTION: apartments and luxury villas with appeal for artists, up-and-coming executives, young families or empty nesters – all with easy access to a lifestyle designed to cater to every need. • Creates more than 12,500 full and part-time jobs (Approximately 1,400 residential units) • Generates nearly $2 billion in total economic output. • Class A office space that brings work and home together in unique and diverse ways with shopping, dining and entertainment just steps away where cars are not needed and commutes are walking distance. (Approximately 470,000 square feet) AT FULL COMPLETION: • Smaller, more localized retail opportunities, services and dining experiences along with a • Creates more than 7,900 full and part-time jobs. community grocery/pharmacy will compliment The Village and Westfield Topanga offerings. • Generates an estimated $1.6 billion in economic (Approximately 244,000 square feet) output • A versatile Entertainment and Sports Center will accommodate 15,000 with flexible seating that could adapt for more intimate events and gatherings such as professional, youth and • Generates nearly $12 million in net new annual community sports as well as live music, performing arts and speaker series. revenue to the City’s General Fund
36 37 UPTOWN AT WARNER CENTER
$4.0 BILLION CAPITAL INFUSION
Uptown at Warner Center is a one-of-a-kind development opportunity consisting of nearly 47 acres located in the mature market of Warner Center in the San Fernando Valley, surrounded by the third largest shopping center in the United States (Westfield Topanga, The Village at Westfield Topanga, and Westfield Promenade 2035), numerous high profile office projects, and residential developments.
The development will produce a state of the art “Live/Work/Play” environment that will be a walkable community featuring a combination of residential and commercial uses including retail, office, hotel, research & development, assisted living and community center space surrounding a 5 acre open park. It will be the San Fernando Valley’s most desirable, sustainable destination with expedient access to every convenience including numerous shopping, dining, and public transportation options.
PROPOSED PROJECT SUMMARY
Class A Office 1,130,000 Residential 3,950,000 Assisted Living 240,000 Retail 200,000 Cultural/Public/Education 310,000 Hotel 155,000 Site Central Plants 50,000 TOTAL 6,035,000
Projected Hotel Room Total 210 Rooms Projected Residential Units Total 3,950 Units Projected Assisted Living Units Total 330 Units Parking Total 10,030 Spaces
TOTAL DEVELOPMENT SITE AREA 2,037,929 SF
38 39 SHOPPING & RETAIL
WESTFIELD TOPANGA Westfield Topanga and the brand new The Village at Westfield Topanga is one of Southern California’s largest shopping complexes. Westfield Topagna is the only center in the United States with a Neiman Marcus and flagship Nordstrom alongside Target, and is a power shopping paradise with a luxury lineup including Gucci, Tiffany & Co., Salvatore Ferragamo, Louis Vuitton, Cartier, Burberry, Jimmy Choo alongside Apple, Tesla, Tory Burch, Anthropologie, Free People, OMEGA, Splendid, Urban Outfitters and Lacoste.
THE VILLAGE AT WESTFIELD TOPANGA The Village showcases trendy local fashion and lifestyle brands, sensational restaurants offering al fresco patio dining, a full-service gym, spa and yoga studio, along with Costco, Crate & Barrel, a weekly farmer’s market and more, all under a canopy of native trees and vegetation. With a combined square footage of over 2.5 million, Westfield offers the retail consumer a laundry list of high-end retailers and restaurant choices. It has transformed into a central gathering place for shopping, dining, entertainment and leisure and provides local residents and visitors a destination experience unlike any other in the San Fernando Valley.
VENTURA BOULEVARD Ventura Boulevard is one of the primary east–west thoroughfares in the San Fernando Valley. Running 18 miles, Ventura Boulevard is the world's longest avenue of contiguous businesses. It has always been a concentrated location for mom and pop shops and small businesses in the Valley; nowadays it has pockets of housing, mini-malls, and shops, along with a wide assortment of businesses, schools, and other establishments. Homes south of Ventura are considered to be among the most expensive in Los Angeles County, ranging from $2 million to $50 million and home to numerous celebrities, executives, athletes, and entertainers alike.
40 THE VILLAGE SHOWCASES TRENDY LOCAL FASHION AND LIFESTYLE BRANDS, SENSATIONAL RESTAURANTS OFFERING AL FRESCO PATIO DINING, A FULL-SERVICE GYM, SPA AND YOGA STUDIO, ALONG WITH COSTCO, CRATE & BARREL, A WEEKLY FARMER’S MARKET AND MORE, ALL UNDER A CANOPY OF NATIVE TREES AND VEGETATION.
41 DEMOGRAPHICS
42,755 Total Population of Canoga Park , CA. The median age is 35. 51% 49% MALE FEMALE EDUCATION
Some High School Some College Associate Degree Graduate Degree 25.13% 17.29% 5.04% 12.19%
GEOGRAPHY Canoga Park is bordered by Woodland Hills on the south, West Hills on the west, Chatsworth on the north, and Winnetka on the east. Bell and Dayton Creeks flowing from the Simi Hills, and Arroyo Calabasas (Calabasas Creek) from the Santa Monica Mountains are several of the headwaters of the Los Angeles River that originate in the western San Fernando Valley that flow through Canoga Park. The Los Angeles River itself begins at the confluence of Calabasas Creek and Bell Creek behind Canoga Park High School. These and other small creeks supply stormwater and suburban runoff water to the Los Angeles River, and several are considered year round creeks. Although the creeks are now channeled and run within concrete walls, they do form a significant urban wildlife landscape and contribute to the population of indigenous wildlife left within the San Fernando Valley.
42 1 MILE 3 MILES 5 MILES
2020 Population 49,817 241,945 479,623
2020 Households 15,351 82,280 166,826 2020 Average Household Size 3.2 2.9 2.8 479,623 24,158 2020 Median Household Income $55,599 $72,731 $79,721 Population Businesses within 5-m radius within 5-m radius 2020 Average Household Income $72,798 $94,273 $104,567
2020 Owner Occupied Housing 4,697 39,920 92,757 Units 2020 Renter Occupied Housing 10,654 42,360 74,069 Units
< $25,000 2,968 13,400 25,544 $104,567 $79,721 Average HH income Median HH income $25,000 - 50,000 3,998 14,774 27,399 within 5-m radius within 1-m radius $50,000 - 75,000 2,575 14,257 26,504
$75,000 - 100,000 2,062 10,958 21,000
$100,000 - 125,000 1,509 9,158 18,745
$125,000 - 150,000 938 5,961 12,336 $150,000 - 200,000 819 6,982 16,043 92,757 74,069 Owner Occupied Households $200,000+ 483 6,789 19,254 Renter Occupied Households within 5-m radius within 5-m radius
43 20900 & 20914 Sherman Way, 7117 & 7127 De Soto Avenue Canoga Park, CA 91303
DE SOTO AVE
SHERMAN WAY
BRANDON MICHAELS TEAM MEMBERS Senior Managing Director of Investments Sean Brandt Senior Director, National Retail Group Ben Brownstein Tel: (818) 212-2794 Andrew Leff BRANDON Fax: (818) 212-2710 Nicole Cottrell MICHAELS [email protected] Matthew Norona GROUP License: CA #01434685 Lauren Sackler SOUTHERN CALIFORNIA'S PREMIER SALES TEAM www.BrandonMichaelsGroup.com Steven Schechter Austin Sreden