Market Positioning and Pricing Analysis 23470 OLIVEWOOD PLAZA DR Moreno Valley, CA 92553 1 NON-ENDORSEMENT AND DISCLAIMER NOTICE Non-Endorsements Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence 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 purpose 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 DETAILS. Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. 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All rights reserved. 23470 OLIVEWOOD PLAZA DR Moreno Valley, CA ACT ID ZAA0970024 2 PRESENTED BY Bruce Haulley Associate Palm Springs Office Tel: (909) 456-3400 Fax: (909) 456-3410 [email protected] License: CA 01239289 3 23470 OLIVEWOOD PLAZA DR TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Property Overview Regional Map Local Map Aerial Photo Parcel Map FINANCIAL ANALYSIS 02 Tenant Summary Lease Expiration Summary Operating Statement Notes Pricing Detail Proposal Price MARKET COMPARABLES 03 Sales Comparables Lease Comparables MARKET OVERVIEW 04 Market Analysis Demographic Analysis 4 23470 OLIVEWOOD PLAZA DR INVESTMENT OVERVIEW 5 23470 OLIVEWOOD PLAZA DR PROPERTY OVERVIEW PROPERTY OVERVIEW A well built office building, located in a highly populated sub-market, close to retail, services, and traffic arteries. Huge parking lot, with neighboring high-quality office and hospitality properties. Low operating costs. Seller financing available. A viable business plan: acquire and operate building with seller financing, and solicit new tenants at market rents ($1.30 to $1.67 gross). When the property achieves market occupancy level (94%), the value of the property will be significantly above current asking price. CoStar reports that the office market cap rate is 6.8%. The property is also ideal for an owner-user, who would utilize the space needed for their business and manage the property for additional tenants. The zoning of the property is “Village Specific Plan” (SP204 community commercial), and is completely compliant with current guidelines. There is no sign program assigned to the building, so a new owner may install signage facing the freeway (118,000 average daily traffic) with a size up to ten percent of the building face. The interiors of the vacant units are in excellent, clean condition. There is no visible or apparent deferred maintenance. The roof and A/C units were last done in 2003, but have been continuously maintained. The property has a large parking area, with sixty spots and four for handicapped. PROPERTY OVERVIEW § Excellent sub-market -- 269,233 consumers within a fifteen minute drive time radius spend over $5 billion for goods and services § Low 6% office vacancy in market § Large parcel with ample parking § Adjacent to freeway, retail, and traffic arteries 6 23470 OLIVEWOOD PLAZA DR REGIONAL MAP 7 23470 OLIVEWOOD PLAZA DR LOCAL MAP 8 23470 OLIVEWOOD PLAZA DR AERIAL PHOTO 9 23470 OLIVEWOOD PLAZA DR NEIGHBORING PROPERTIES 10 23470 OLIVEWOOD PLAZA DR PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm. 1211 23470 OLIVEWOOD PLAZA DR PARCEL MAP 12 23470 OLIVEWOOD PLAZA DR FINANCIAL ANALYSIS 13 23470 OLIVEWOOD PLAZA DR FINANCIAL ANALYSIS TENANT SUMMARY 14 23470 OLIVEWOOD PLAZA DR FINANCIAL ANALYSIS OPERATING STATEMENT 15 23470 OLIVEWOOD PLAZA DR FINANCIAL ANALYSIS PRICING DETAIL 16 23470 OLIVEWOOD PLAZA DR MARKET COMPARABLES 17 23470 OLIVEWOOD PLAZA DR SALES COMPARABLES MAP 23470 OLIVEWOOD PLAZA DR (SUBJECT) 1 3768 10th St 2 1037 E Palmdale Blvd 3 14297 Cajon Ave 4 74923 Hovley Ln ON MARKET COMPARABLES 18 PROPERTY23470 OLIVEWOOD NAME PLAZA DR ON MARKET COMPARABLES ON MARKET COMPS AVG SALES COMPARABLES Average Price Per Square Foot $200.00 $180.00 Avg. $165.43 $160.00 $140.00 $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 23470 3768 1037 E 14297 74923 Olivewood 10th St Palmdale Cajon Ave Hovley Ln Plaza Dr Blvd 19 PROPERTY23470 OLIVEWOOD NAME PLAZA DR SALESMARKETING COMPARABLES TEAM ON MARKET COMPARABLES 3768 10TH ST 1037 E PALMDALE BLVD 23470 OLIVEWOOD PLAZA DR 3768 10th St, Riverside, CA, 92501 1037 E Palmdale Blvd, Palmdale, CA, 93550 23470 Olivewood Plaza Dr, Moreno Valley, CA, 92553 1 2 rentpropertyname1 rentpropertyname1 rentpropertyname1 Asking Price $2,000,000 On Market On Market Price/SF $109.21 Days On Market 400 Days On Market 500 CAP Rate 2.62% List Price $1,100,000 List Price $2,200,000 Year Built 1986 Rentable SF 6,499 Rentable SF 13,752 Occupancy 22% Price/SF $169.26 Price/SF $159.98 Parking Ratio 3.68/1,000SF Year Built 1905 Year Built 1987 Parking Ratio 3.32 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 NOTES NOTES Vacancy -- asking $1.08 PSF MG Vacancy -- asking $.99 to $1.08 PSF NNN 20 PROPERTY23470 OLIVEWOOD NAME PLAZA DR SALESMARKETING COMPARABLES TEAM ON MARKET COMPARABLES 14297 CAJON AVE 74923 HOVLEY LN 14297 Cajon Ave, Victorville, CA, 92392 74923 Hovley Ln, Palm Desert, CA, 92260 3 4 rentpropertyname1 rentpropertyname1 rentpropertyname1 On Market On Market Days On Market 700 Days On Market 130 List Price $935,000 List Price $3,000,000 Rentable SF 6,176 Rentable SF 16,568 Price/SF $151.39 Price/SF $181.07 Year Built 1989 Year Built 1987 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 21 23470 OLIVEWOOD PLAZA DR 8 LEASE COMPARABLES MAP 23470 OLIVEWOOD PLAZA DR (SUBJECT) 1 24281 Postal Ave 2 23767 Sunnymead Blvd 3 23119 Cottonwood Ave 4 7 8 9 10 11 12 13 14 15 16 17 18 20 22 PROPERTY23470 OLIVEWOOD NAME PLAZA DR LEASEMARKETING COMPARABLES TEAM 23470 OLIVEWOOD PLAZA DR 24281 POSTAL AVE 23767 SUNNYMEAD BLVD 23470 Olivewood Plaza Dr, Moreno Valley, CA, 92553 24281 Postal Ave, Moreno Valley, CA, 92553 23767 Sunnymead Blvd, Moreno Valley, CA, 92553 1 2 rentpropertyname1 rentpropertyname1 rentpropertyname1 Available SF 14,291 Survey Date 8/17/2019 Survey Date 8/17/2019 Asking Rent/SF $5.38 Rentable SF 35,719 Rentable SF 5,040 Year Built 1986 Available SF 523 Available SF 250 Occupancy 22% Asking Rent/SF $0.85 Asking Rent/SF $2.50 Lease Type Gross Year Built 1991 Year Built 1992 Lot Size 0.94 acre(s) Lease Type Modified Gross Lease Type Modified Gross Parking Ratio 3.68/1,000SF Lot Size .82 Lot Size .12 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 NOTES NOTES Building similar in age and configuration. Inferior location. Large retail center -- close proximity to Subject Property 23 PROPERTY23470 OLIVEWOOD NAME PLAZA DR LEASEMARKETING COMPARABLES TEAM 23119 COTTONWOOD AVE 23119 Cottonwood Ave, Moreno Valley, CA, 92553 3 rentpropertyname1 rentpropertyname1 rentpropertyname1 Survey Date 8/17/2019 Rentable SF 30,656 Available SF 30,656 Asking Rent/SF $2.20 Year Built 1988 Lease Type Gross Lot Size 6.14 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 NOTES Entire space available with 30 days notice. 24 23470 OLIVEWOOD PLAZA DR MARKET OVERVIEW 25 23470 OLIVEWOOD PLAZA DR MARKET OVERVIEW RIVERSIDE-SAN BERNARDINO OVERVIEW The Riverside-San Bernardino metro, also referred to as the Inland Empire, is a 28,000-square-mile region in Southern California composed of San Bernardino and Riverside counties. The metro contains a population approaching 4.6 million. The largest city is Riverside with more than 325,000 residents, followed by San Bernardino with nearly 221,000 people. Valleys in the southwestern portion of the region that are adjacent to Los Angeles, Orange County and San Diego County, are the most populous in the metro. These areas abut the San Bernardino and San Jacinto mountains, behind which lies the high desert area of Victorville/Barstow to the north and the low-desert Coachella, home of Palm Springs, to the east. METRO HIGHLIGHTS STRATEGIC LOCATION Interstate access, close proximity to LAX and Ontario International airports as well as ports in Long Beach and Los Angeles contribute to the metro’s vast air, rail and interstate transit network. DOMINANT INDUSTRIAL MARKET Riverside-San Bernardino is one of the nation’s leading industrial markets in terms of sales, construction and absorption. STRONG DEMOGRAPHIC TRENDS Jobs, colleges, new-home construction and more affordable housing options draw thousands of new residents to the Inland Empire each year. 1 23470 OLIVEWOOD PLAZA DR MARKET OVERVIEW ECONOMY § Intermodal infrastructure supports the warehousing and distribution industry. Ontario International and the Southern California Logistics Airport in Victorville are cargo airports that supplement the distribution system. § Growth in the distribution industry impacts all others. Many Fortune 500 companies have massive distribution centers in the area, such as Amazon and Deckers. Available land allows further development. § Relatively affordable