OFFERING MEMORANDUM FOR SALE - RARE ORANGE COUNTY MULTI-TENANT INDUSTRIAL OPPORTUNITY Tri-Freeway Business Park ANAHEIM, CALIFORNIA PRIVATE CAPITAL GROUP | CAPITAL MARKETS tri-freeway business park tri-freeway Private Capital Group-Newport Beach GARY STACHE ANTHONY DELORENZO PAT SCRUGGS Executive Vice President Senior Associate Senior Vice President Lic. 00773736 Lic. 01706686 Lic. 00851446 +1 949 725 8532 +1 949 725 8425 +1 949 725 8520 [email protected] [email protected] [email protected] Institutional Group Financing CBRE - Newport Beach DARLA LONGO BARBARA EMMONS JEFF ALLEN | LOCAL MARKET VALERIE ACHTEMEIER Vice Chairman Vice Chairman Portfolio Manager Executive Vice President 3501 Jamboree Rd. Ste 100 Lic. 00639911 Lic. 00969169 Lic. 01313074 Lic. 01868169 Newport Beach, CA 92660 +1 909 418 2105 +1 213 613 3033 +1 714 202 2930 +1 213 613 3109 F + 1 949 725 8545 [email protected] [email protected] [email protected] [email protected] www.cbre.com/pcgnb Tri-Freeway Business Park ANAHEIM, CALIFORNIA 1 executive summary 7 property description table of contents 15 area overview 31 industrial market overview 41 financials / replacement costs Property Information and Offering Materials Available at: www.pcgnb.com/TriFreeway Tri-Freeway Business Park ANAHEIM, CALIFORNIA executive summary investment summary CBRE is pleased to announce an exciting opportunity to purchase a Address 700-720 N Valley Street & well leased 10 building multi-tenant industrial park totaling 208,824 2101-2121 W Crescent Avenue SF with 122 units on ±12.74 acres in Anaheim, California. Anaheim, CA 92801 Tri-Freeway Business Park offers investors a rare opportunity to executive summary acquire an exceptional property that rarely comes available for Offering Price $24,580,000 ($118) sale in one of the best industrial markets in the United States. Year 2 Cap Rate 5.50% This freeway frontage park is located in the heart of the highly desirable North Orange County submarket of Orange County at All Cash IRR with Condo Sale Exit 24.96% the confluence of the I-5 Santa Ana Freeway and the 91 Artesia Freeway. Total Building Area ±208,824 SF Total Land Area ±12.74 Acres Number of Buildings 10 Parking 605 Project Website www.pcgnb.com/TriFreeway 1 LA MIRADA BUENA PARK DOWNTOWN 91 RIVERSIDE FREEWAY BROOKHURST SOUTH BAYLO COMMUNITY PARK UNIVERSITY FAIRMONT LA PALMA AVE PREPARATORY ACADEMY BROOKHURST ST business park tri-freeway BROOKHURST JR HIGH EVEREST COLLEGE 5 SANTA ANA FREEWAY CRESCENT AVE Tri-Freeway Business Park Anaheim, California 2 investment highlights Rare Opportunity to Acquire a Multi-tenant • The other major reason investors prefer industrial Strategic Freeway Frontage North Orange County Industrial Park with Upside Potential multi-tenant parks is the low tenant improvement Location build-out costs if a tenant vacates due to the • Ideally located in Anaheim, Orange County’s largest • Tremendous Interstate 5 freeway exposure, limited office buildout with the smaller unit sizes. industrial market with over 42 million square feet which has more than 242,000 cars per day. and a vacancy rate of 2.0%. North Orange County • Variety of unit sizes for the market generally • Immediate proximity to Interstate 5/Artesia is one of the tightest submarkets in the entire ranging from 1,000 - 4,000 square feet allows for Freeway 91 interchange which provides access country boasting a vacancy rate of 2.4%. tenants to expand and contract within the park. to all of Southern California. • One of 14 competing multi-tenant industrial • The small tenant market (<3,000 SF) is gaining • Located just off Interstate 5 and Brookhurst investment highlights parks with a vacancy rate of 8.41% momentum in 2013, which is evident by interchange which is one of Anaheim’s major significant leasing activity and the longer term • Upside potential as industrial rents are projected north/south thoroughfares. leases, showing tenant confidence in the market. to increase significantly over the next 3 years. • Ideal incubator multi-tenant industrial Rents are currently 25% below peak 2007 values. • Multi-tenant industrial properties are one of demographics. Within 5 miles of 674,849 people the most desired property types with very few • Exceptional long term cash flow with limited risk. with an average household income of $72,533. properties coming on the market. There are 10 buildings with 122 units. The largest As the economy has improved, people are unit only accounts for 2.87% of the total area • Future potential to sell off individual buildings or moving out of their homes and back into the which limits major rollover exposure. The benefit condo units to reduce the basis in the park and smaller incubator units. of owning multi-tenant parks is that there is no increase cash flow. • Situated in the heart of an industrial base risk of losing a major tenant. Even during major • Rare freeway frontage sign. consisting of 81 Million SF within 5 miles which downturns multi-tenant parks on average aren’t contain clients of the tenants occupying the units effected as much as larger industrial product. in this project. • Located only 3 miles from Disneyland. 3 tri-freeway business park 4 tri-freeway business park 5 tri-freeway business park 6 Tri-Freeway Business Park ANAHEIM, CALIFORNIA property description 700-720 N Valley Street & Address 2101-2121 W Crescent Avenue Anaheim, CA 92801 Accessor's Parcel 072-060-56 and 072-060-32 Warehouse Space: 131,087 Building Size Office Space: 77,737 property description property Total Space: 208,824 Land Area 12.74 Acres Number of Buildings 10 Number of Units/ 122 Tenants Total Parking Spaces 605 Years Built 1974-1975 7 property description (cont.) Utilities • Exterior Walls: Pre-cast concrete exterior walls • Mezzanine Space: The office area contains no with glass storefronts. mezzanine space. • Water- City of Anaheim • Roof Cover: The buildings have a built-up • Fire Protection: The subject buildings are • Sewer- City of Anaheim composition roll cover over plywood decking. not fire sprinklered. The project is assumed • Natural Gas- Souther California Gas Co to have adequate fire alarm systems, fire • Floor Coverings: Office floor coverings consist exits, fire extinguishers, and/or other fire of commercial grade short loop carpeting and • Electricity- City of Anaheim protection measures to meet local fire marshal vinyl tile over concrete. The warehouse has requirements. • Telephone- AT&T concrete flooring. • Loading: The office/warehouse units have description property • Mass Transit- OCTA • Interior Walls: The interior walls consist of a ground level loading doors. metal framework with textured and painted sheetrock wall coverings. Construction Components • Ceilings: The ceiling is comprised of a The construction components and interior finish of suspended grid in the office with exposed beams the property are summarized as follows: in the warehouse area. • Foundation: Poured reinforced concrete slab on • Lighting: Office area lighting is provided by grade, with continuous perimeter footings and in-laid fluorescent lighting. The warehouse areas column pads. have suspended fluorescent fixtures. 8 property description (cont.) Clear Year Built/ Building Number Improvement Type Size (SF) Height Renovated 700 N. Valley CTU Office/Warehouse 24,750 14 Ft. 1975 704 N. Valley CTU Office/Warehouse 40,165 14 Ft. 1975 708 N. Valley CTU Office/Warehouse 29,995 14 Ft. 1975 712 N. Valley CTU Office/Warehouse 19,500 14 Ft. 1975 716 N. Valley CTU Office/Warehouse 16,650 14 Ft. 1975 property description property 720 N. Valley CTU Office/Warehouse 24,000 14 Ft. 1975 2101 W. Crescent CTU Office/Warehouse 19,364 14 Ft. 1975 2111 W. Crescent CTU Office 10,000 N/A 1974 2115 W. Crescent CTU Office 14,400 N/A 1974 2121 W. Crescent CTU Office 10,000 N/A 1975 Total / Average: 208,824 Source: Site Plan, Costar, Inspection, Public Records 9 tri-freeway business park 10 site plan 5 N M K J 720 SANTA ANA FWY H A Q G B P F C N 716 E D M U E K A C F J B B G H C A D 712 E 708 A F G C D E F G H J K M H J K M N P Q R S N VALLEY STREET N VALLEY B 1 Phase 2 site plan Z A A B C D E F G H J K M N P Q R S T U V W X Y C D E F G H J K B 704 700 N M K J H G 2101 2121 2115 Phase 1 F A H E H G F E B G D C C F A B C D B D E A 2111 W CRESCENT AVENUE 11 5 parcel map N M K J 720 SANTA ANA FWY H A Q G B P F C N 716 E D M U E K A C F J B B G H C A D 712 E 708 A F G C D E F G H J K M H J K M N P Q R S N VALLEY STREET N VALLEY B 1 Phase 2 parcel map parcel Z A A B C D E F G H J K M N P Q R S T U V W X Y C D E F G H J K B 704 700 N M K J H G 2101 2121 2115 Phase 1 F A H E H G F E B G D C C F A B C D B D E A 2111 W CRESCENT AVENUE 12 tri-freeway business park 13 tri-freeway business park 14 orange county overview Orange County is the sixth most populous county in quality of living continue to attract businesses to shopping, and a wide range of cultural arts.