distribution warehouse - Voit Real Estate Services

distribution warehouse - Voit Real Estate Services

OWNER / USER
LEASED INVESTMENT OPPORTUNITY
FOR SALE | ±52,991 SF
DISTRIBUTION WAREHOUSE
Exclusively Offered By:
Chase MacLeod
Shy Assar
cmacleod@voitco.com
Lic # 01899515
sassar@voitco.com
Lic # 01964667
Vice President
P 909.545.8090
Associate
P 909.545.8091
OFFERING MEMORANDUM
14040 - 14042 CENTRAL AVENUE, CHINO, CA
CHINO, CA
O ff e r in g M e m o r a n d u m
|
Exe cu t ive Su m m a r y
The Offering
SITE
n
Chi
o
Hi
Asking Price: $7,495,000 | $141.43 PSF
lls P
kw
71
83
y
Chino
Airport
Project & Site Highlights
Two-Unit, Fully Demised Building (Separate Addresses)
•
±25,555 SF Leased to Quality Tenant Through
December 2024
•
±27,436 SF Available Vacant or After Short Term
Leaseback or Three (3) Year Leaseback with Seller
te
But
•
ld
r
f ie
Rd
nch
Ra
Distance to —
•
NOI (with Seller Leaseback)*$369,000 (FYE June 30, 2017)
Assumes Closing Date by June 30, 2016.
•
Four (4) Dock High Doors
Freeway – 1.9 miles
•
22' Minimum Clearance
Freeway – 8.6 miles
•
0.45 GPM / 3,000 Sprinkler Calculations
•
Three (3) Ground Level Doors
•
SBA Owner / User Financing Possible (verify)
Freeway – 2.2 miles
Freeway – 6.02 miles
Freeway– 8 miles
Voit Real Estate Services
|
Chase MacLeod
Shy Assar
|
|
cmacleod@voitco.com
sassar@voitco.com
|
|
909.545.8091
909.545.8090
Page 2
Vineyard Ave
Reservoir St
60
Grove Ave
The property located at 14040 –14042 Central Avenue in
Chino, California is an opportunity to acquire a highly functional
distribution warehouse in the heart of the western most portion
of the Inland Empire. The property (±52,991 SF) offers a rare
opportunity for an owner / user to occupy a building with long
term in place rental income, or an investor the opportunity to
purchase a property located in a highly sought after infill market
with vacancy and significant upside.
Garey Ave
14040–14042 CENTRAL AVE CHINO
14040–14042 CENTRAL AVE CHINO
O ff ering Me m o r a n d u m
Tenant and Lease Overview
|
Te n a n t a n d L e a se O ve r vie w
Seller Potential Leaseback Summary
Sokol Diamond Elite Gymnastics recently
extended their lease for ten (10) years in the
14040 Central Avenue unit commencing January
1, 2015 at an initial monthly industrial gross rent
of $16,355 per month, which is subject to an
annual increase of three percent (3.0%) every
year on January 1.
Seller is prepared to either deliver the 14042 Central Avenue
unit vacant or agree to a short term leaseback prior to closing.
Potential Seller Leaseback
Tenant Lease Summary
Unit Address
14040 Central Avenue, Chino
Square Footage
25,555 SF
Lease Commencement
January 1, 2015
Lease Term (Expiration Dec. 2024)
10 Years
Current Monthly Base Rent
(January - December 2016)
$16,846 Per Month
Annual Escalations
3.0%
Lease Form
AIR Multi-Tenant Gross
Annual Operating Expenses - Entire Bldg.
(CAM, Insurance, Association Fees)
$39,700
Est. Annual Property Taxes - Entire Bldg.
(Post Sale)
$82,445
Commencement of Term
Upon Closing
Lease Term
Thirty-Six (36) months
Lease Type
Industrial Gross
Renewal Option
None
Rental Rate
$23,897/Mo. Industrial Gross
Annual Escalations
3.0%
Sale Leaseback Cash Flow
|
Chase MacLeod
Shy Assar
|
$492,195.00
NOI (with leaseback)*
$369,000.00 (FYE June 30, 2017)
*Comments: Assumes Closing Date of June 30, 2016 and leaseback
commencement of July 1, 2016.
Comments: Tenant’s lease does not allow for increases to property taxes from
transfer of ownership or property sale to be passed through to the tenant.
Voit Real Estate Services
Annual Gross Income (est.)
|
cmacleod@voitco.com
sassar@voitco.com
|
|
909.545.8091
909.545.8090
Page 3
14040–14042 CENTRAL AVE CHINO
Off e r in g M e m o r a n d u m
|
Pr o p e r t y O ve r vie w
Site Plan
GL
4 Dock
Doors
GL
GL
±27,016 SF
±25,975 SF
Can be delivered vacant
after short term
leaseback to Seller,
or three (3) year
leaseback to Seller
Long term lease
in place through
December 2024
C E N T R A L AV E
Voit Real Estate Services
|
Chase MacLeod
Shy Assar
|
|
cmacleod@voitco.com
sassar@voitco.com
|
|
909.545.8091
909.545.8090
Page 4
14040–14042 CENTRAL AVE CHINO
Off e r in g M e m o r a n d u m
|
Pr o p e r t y O ve r vie w
Building Specifications
Physical Asset Specification
Site Specifications
Building Type
Year Built
435' x 300'
Building Floor-to-Area Ratio
0.411
±52,991 SF
Rail Line / Rail Spots / Rail Doors
None
±5,100 SF (Split Between Units)
Secured Truck Court / Yard (Y/N)
No
321' x 173'
Building Square Footage
Mezzanine Square Footage
Truck Court Depth & Length
None
Building Footprint
22'
Maximum Clear Height
23'6”
Column Spacing (Speed Bay Depth)
Loading Dock High Doors (H' x W')
Dock Package (Bumpers, Shelters, Z-Guards)
60' Concrete Apron
Drive Around Capable
52,991 SF
Minimum Clear Height
Yes
Concrete Apron Dimensions
60' Concrete Apron
Truck Court Slope
TBD
40' x 40'
Trailer Parking Stalls
None
4 (9' x 10')
Auto Parking Spaces
109 (2.06/1,000)
Bumpers
Truckwells (H' x W')
None
Levelers (Interior or Exterior)
2 Exterior
Ground Level Drive-In Doors (H' x W')
3 Total (10' 0" W x 14' 0" H)
Power (Amps/Volts/Phase)
400 Amps/277-480v/3p 4w
Insulation
Foil Scrim
Sprinkler System Calcs (Head Type)
Warehouse Lighting
±2.96 AC (128,937 SF)
Lot Dimensions
Original (Regular Maintenance)
Building Dimensions (W' x L')
M-2
Lot Size
Concrete Tilt-Up
Roof Construction (original / replacement date)
1021-021-24
Zoning
1990
Construction Type
Office Square Footage (%)
APN:
Industrial Distribution and Manufacturing
0.45 GPM/3,000
Metal Halide Warehouse Lights
Skylight Ratio
Approx. 2% Ratio
Voit Real Estate Services
|
Chase MacLeod
Shy Assar
|
|
cmacleod@voitco.com
sassar@voitco.com
|
|
909.545.8091
909.545.8090
Page 5
14040–14042 CENTRAL AVE CHINO
Voit Real Estate Services
Off e r in g M e m o r a n d u m
|
Chase MacLeod
Shy Assar
|
|
cmacleod@voitco.com
sassar@voitco.com
|
|
909.545.8091
909.545.8090
|
Pr o p e r t y O ve r vie w
Page 6
14040–14042 CENTRAL AVE CHINO
Mo
onrovia
n
Glendor
Glen
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City of Industry
City of Industry
La H
La
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City of Industry
Rancho Cucamonga
Ontario
City of Industry
Ontario
Ontario
Corona
City of Industry
Corona
City of Industry
Corona
Corona
Corona
Chino
Chino
Chino
SITE
Diamond B
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11
13
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12 14
8
7
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Ro
owlland
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Whitt
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18
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City
C
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60
Sale Comps
# Address
1 1181 E. Belmont St
2 883 S. Azusa Ave
3 13001 Temple Ave
4 15323 E. Proctor Ave
5 10700 7th St
6 2121 Business Pkwy
7 19400 E. San Jose Ave
8 1690 Milliken Ave
9 1705 E. Francis St
10 1468 Davril Cir
11 425 S. Hacienda Blvd
12 1801 Railroad St
13 803 S. Tucker Ln
14 510 Alcoa Cir
15 181 Via Trevizio
16 755 Trademark Cir
17 5911 Schaefer Ave
18 3549-3553 Placentia Ct
19 4850 Eucalyptus Ave, Bldg F
10
Walnu
n t
La
aP
Puent
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13
Rancho
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Irwindal
ndale
dale
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4
Sa le s a n d L e a se Co m p a r a b le s
210
La Vern
V ne
e
Ell M
E
|
O ff ering Memo r a n d u m
57
Lease Comps
# Address
1 13940 Magnolia Ave
2 5270 Edison Ave
3 5002 Lindsay Ct Brea
4 14323 Fern Ave
5 12240 East End Ave
6 13828 Mountain Ave
7 13626 Monte Vista Ave, Unit B
8 13901 Yorba Ave
9 1009-1027 Brooks St
10 1702 S. Cucamonga Ave
11 708 Nogales St
12 19224 E. Walnut Dr
13 1365 Darius Ct
14 19877 Quiroz Ct
15 21305 Ferrero Pkwy
2
17
1 6
60
Ontario International
Airport
9
6
8
Ontario
O
i
4
15
C
Chino
71
E
Eastvale
Chino Hills
Hills
City
Chino
Chino
Chino
Chino
Chino
Chino
Chino
Chino
Ontario
Ontario
City of Industry
City of Industry
City of Industry
City of Industry
City of Industry
N
Nor
Norc
o
12 10 14
Li a
Lind
91
16
Coron
Coro
oo
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na
Anahei
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m
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15
241
Voit Real Estate Services
|
Chase MacLeod
Shy Assar
|
|
cmacleod@voitco.com
sassar@voitco.com
|
|
909.545.8091
909.545.8090
Page 7
14040–14042 CENTRAL AVE CHINO
O ff ering Memo r a n d u m
|
Sa le s a n d L e a se Co m p a r a b le s
LEASE COMPARABLES*
Map #
Date
Address
City
Leased SF
Office
Rent PSF
Free Rent
Lessee
Lessor
Annual
Increases
1
02/16
13940 Magnolia Avenue
Chino
47,917 SF
--
$0.55 NNN
1 mo
Argos Material Dist.
2000 Gold, LP
3% Annually
--------------
2
07/14
5270 Edison Avenue
Chino
39,723 SF
18%
$0.54 NNN
3 mos
Pacific Coast Manufacturing
Pegasus Bay, LLC
3% Annually
--------------
3
2/16
5002 Lindsay Court
Chino
32,000 SF
--
$0.72 G
1 mo
Uni-Pac
Oscar Lin
3% Annually
-------------
4
07/14
14323 Fern Avenue
Chino
25,000 SF
8%
$0.71 G
2 mos
JF Manufacturing
3% Annually
-------------
5
03/14
12240 East End Avenue
Chino
28,662 SF
--
$0.67 G
4 mos
CB E-Commerce
Crawford Family Trust
3% Annually
-------------
6
11/15
13828 Mountain Avenue
Chino
41,166 SF
5%
$0.645 G
1 mo
El and El Wood Products
Golden Giant Liong, LLC
3% Annually
Freestanding Building
7
01/16
13626 Monte Vista Avenue, Unit B
Chino
14,080 SF
--
$0.75 G
1 mo
Linco International
E.B.B. Properties
3% Annually
--------------
8
11/15
13901 Yorba Avenue
Chino
25,000 SF
8%
$0.71 G
0
Yes Depot, Inc
Majestic Realty Co
3% Annually
Renewal
Comments/Notes
9
03/14
1009-1027 Brooks Street
Ontario
23,204 SF
4%
$0.75 G
0
---------------
HOS Properties
5% Annually
As-Is
10
01/15
1702 S. Cucamonga Avenue
Ontario
20,202 SF
9%
$0.77 MG
0
Altech, Inc
WNL Ontario
Yes
-------------24' CL, 200 amp, 1 GL/2 DH
11
07/15
708 Nogales Street
City of Industry
20,993 SF
5,076 SF
$0.85 G
1 mo
Acosta, Inc
Dedeaux Enterprises, LLC
3% Annually
12
03/15
19224 E. Walnut Drive
City of Industry
21,675 SF
4,663 SF
$0.88 NNN
1 mo
America Auto Parts Cntr
Chalmers - Walnut, LLC
3% Annually
24' CL, Option to extend,
13
08/15
1365 Darius Court
City of Industry
23,040 SF
3,000 SF
$0.79 G
1 mo
PT Cabinetry, Inc
Nuflex Investments, Inc
3% Annually
18' CL, 1 GL/2 DH, 600 amps
14
05/15
19877 Quiroz Court
City of Industry
24,680 SF
7,566 SF
$0.73 G
1 mo
Elegant Stone/Granite
Shea Properties
3% Annually
1 GL/3 DH, 400 amps, 18' CL
15
11/15
21305 Ferrero Parkway
City of Industry
28,193 SF
1,771 SF
$0.76 G
0
HD Technology
AEW
3% Annually
1 GL/3 DH, 27' CL, 400 amps
*As of April 2016 there is only one (1) availability for lease in Chino between 20,000 - 30,000 SF (Asking rental rate is $0.755 Gross)
SALE COMPARABLES
Map #
Address
City
SF
Yr. Built
Sale Price
$ / SF
Buyer
Seller
Buyer Type
Comments/Notes
1
1181 E. Belmont Street
Ontario
21,726 SF
2015
$3,585,000
$165.01
Godfrey Ching Shyr
JBG Development
User
2
883 S. Azusa Avenue
City of Industry
32,300 SF
1998
$5,300,000
$164.09
XWN Properties LLC
Jeli Properties, LLC
User
----------------
3
13001 Temple Avenue
City of Industry
56,496 SF
2015
$8,650,000
$153.11
Yang Yang
S & C Property Dev., Inc
User
----------------
4
15323 E. Proctor Avenue
City of Industry
27,240 SF
1972
$4,086,000
$150.00
Tripod Property, LLC
Boaz Realty, LLC
User
5
10700 7th Street
Rancho Cucamonga
42,583 SF
1982
$6,266,500
$147.16
ATG Electronics, Inc
Barb Family Living Trust
User
2 GL
6
2121 Business Parkway
Ontario
44,984 SF
2016
$6,522,680
$145.00
--------------------
Frewing Dev.
User
High Image Corp Bldg, 32' CL
7
19400 E. San Jose Avenue
City of Industry
26,795 SF
1980
$3,850,000
$143.70
Fortune Dynamic RE, LLC
Foria Investments, LP
Investor
8
1690 Milliken Avenue
Ontario
52,387 SF
2008
$7,334,180
$140.00
Kazarian Family Trust
Mintra Investments, LLC
Investor
2 GL/3 DH
----------------
---------------1200 amps, 28' CL,1 GL/5 DH
9
1705 E. Francis Street
Ontario
23,356 SF
2015
$3,269,840
$140.00
RSD
Shelby Office Park, LLC
User
2 GL/2 DH
10
1468 Davril Circle
Corona
38,322 SF
1990
$15,210,148
$135.96
Morningstar General
JR Associates
User
Desirable Corona location, yard
11
425 S. Hacienda Blvd
City of Industry
51,823 SF
1997
$7,000,000
$135.08
Rexford Industrial Realty, LP
CCR&B III, LLC
Investor
12
1801 Railroad Street
Corona
24,059 SF
1988
$3,250,000
$135.08
Anthony Alosi
Thomas Corey
User
---------------
13
803 S. Tucker Lane
City of Industry
29,197 SF
1974
$3,925,000
$134.43
Tucker Association, LLC
Pace Trust
User
----------------
14
510 Alcoa Circle
Corona
29,244 SF
2004
$3,943,500
$134.85
Richard Barteaux
Charles Zhang
Investor
---------------
15
181 Via Trevizio
Corona
23,250 SF
2005
$3,100,000
$133.33
Steve Rumsey
Portrait Construction
User
16
755 Trademark Circle
Corona
34,312 SF
2001
$4,556,000
$132.78
Motive Energy, Inc
Plak Smacker, Inc
User
High image, concrete truck apron
17
5911 Schaefer Avenue
Chino
59,041 SF
2004
$7,262,500
$123.01
Chengliang Tang
Goodhope Bags
User
26' Clearance
18
3549-3553 Placentia Court
Chino
60,374 SF
1986
$7,400,000
$122.57
Heitman
Architect Investments
Investor
19
4850 Eucalyptus Ave, Bldg F
Chino
86,204 SF
1998
$9,750,000
$113.10
Mukesh Batta
Clive McFerran
User
Voit Real Estate Services
|
Chase MacLeod
Shy Assar
|
|
cmacleod@voitco.com
sassar@voitco.com
|
|
909.545.8091
909.545.8090
---------------
--------------
Short term leaseback
1600 amps, 30' CL, 2 GL/11 DH
Page 8
14040–14042 CENTRAL AVE CHINO
O ff e r in g M e m o r a n d u m
|
F in a n ce O p t io n s
OWN VS. LEASE
OWN
Purchase Assumptions
Size (Square feet)
Initial Purchase Price
Tenant Improvements
Total Purchase Price
Down Payment
Loan Amount
LEASE
Per sq ft
$141
$0.00
10%
52,991
$7,495,000
0
$7,495,000
$749,500
$6,745,500
Start-up Costs
Down Payment
Estimated Closing costs
Cost Segregation
Total out of pocket costs
$749,500
$36,399
$0
$785,899
Monthly Costs
Mortgage Payment (P&I)
Property Taxes
Association Dues
COA/CAM
Avg Rental Income for lease term
Total Monthly Costs
Per sq ft
$38,067
$6,995
$1,583
$1,725
$19,016
$29,355
1.1%
Net Monthly Ownership Cost, Net of Tax Benefits
Purchase and Alloc to Bldg
Monthly depreciation @
Property Tax, Utilities, COA/CAM
Interest Deduction (5 year avg)
Total Tax Benefits
$5,765
$4,121
$12,182
$22,068
$7,287
Net Effective Ownership Costs
$0.14
Net Cost Per SF to Own
Voit Real Estate Services
|
Chase MacLeod
Shy Assar
|
Monthly Costs
Lease Payment
Property Taxes
Operating Expenses
Association Dues
$29,718
Per sq ft
$0.55
$14,859
INC
$4,863
$0
$0.18
$0.00
$19,722
Total Monthly Costs
Tax Benefits
Depreciation Benefit
Operating Expense Deduction
Lease Deduction
Utilities
Total Tax Benefits
Total Effective Monthly Lease Costs
|
40%
n/a
$825
$5,944
$633
$6,577
$13,145
Net Cost Per SF to Lease
cmacleod@voitco.com
sassar@voitco.com
$14,859
$14,859
Total out of pocket costs
$0.49
For additional information, please contact:
Matthew Foster
Union Bank
949-553-4372
949-433-0091
matt.foster@unionbank.com
$7,719,850
$7,951,446
$8,189,989
$8,435,689
$8,688,759
$8,949,422
$9,217,905
$9,494,442
$9,779,275
$10,072,653
$2,577,653
-$749,500
$1,828,153
$15,235
$0.29
|
$0.00
Start-up Costs
Prepaid Rent
Security Deposit
3.0%
Appreciated Value Year 1
Appreciated Value Year 2
Appreciated Value Year 3
Appreciated Value Year 4
Appreciated Value Year 5
Appreciated Value Year 6
Appreciated Value Year 7
Appreciated Value Year 8
Appreciated Value Year 9
Appreciated Value Year 10
Total Appreciation
Less Down Payment
Net Appreciation
Monthly Appreciation
Monthly Appreciation per RSF
27,016
$0.55
$14,859
$0
$14,859
Net Monthly Lease Cost
$7,495,000
90%
39 yrs
12 mos
40% tax bracket
Appreciation Benefits of Ownership
Rate of Assumed Appreciation per Year
Lease Assumptions
Size (Square feet)
NNN Lease rate per RSF
Monthly lease cost net of utilities
Monthly utilities
Monthly lease cost plus utilities
|
909.545.8091
909.545.8090
Page 9
14040–14042 CENTRAL AVE CHINO
O ff e r in g M e m o r a n d u m
SBA OPTIONS
|
F in a n ce O p t io n s
Feb 8, 2016
Matt Foster
Financing Solutions Provided by:
Business Development Officer
949-553-4372
949 433 0091 (mobile)
14040-14042 Central Ave
Chino, CA
52,991 SF @ $141 per SF
Commercial Real Estate Purchase Analysis
Total Purchase Cost
$7,495,000
SBA 504 Option 1
10 yrs Fixed
20 yrs Fixed
1st
2nd
Down Payment
LTV
Loan Amount
Financed Fee
Rate (%)*
Amortization
Term (Years)
504 Monthly Payment
Monthly Payment Estimate
$749,500
90%
$4,497,000
SBA 504 Option 2
25 yrs Fixed
20 yrs Fixed
1st
2nd
$749,500
90%
$4,497,000
$2,248,500
$50,842.75
4.820%
20
20
($14,946.94)
($38,067.42)
3.750%
25
20
($23,120.48)
504 Total
4.300%
25
25
($24,488.04)
504 Total
$2,248,500
$50,842.75
4.820%
20
20
($14,946.94)
($39,434.98)
Interest Only Payment Estimate
Estimated Real Estate Loan Fees
Loan Fee %*
Loan Fee
Appraisal & Review*
Environmental*
Legal*
Title (.006% of Loan Amount)
Escrow*
Other*
Total
*For 504, this is Bank Interim Loan Fee
Total Out of Pocket Expenses
(Down Payment and Closing Costs)
0.500%
$22,485.00
$3,000.00
$1,900.00
$0.00
$6,814.00
$1,500.00
$700.00
$36,399.00
2.150%
$50,842.75
0.500%
$22,485.00
$3,000.00
$1,900.00
$0.00
$6,814.00
$1,500.00
$700.00
$36,399.00
Fee Combined
Fee Combined
$2,500.00
Fee Combined
Fee Combined
$0.00
$0.00
504 Total
$36,399.00
504 Out of Pocket
Expense
504 Total
504 Out of Pocket
Expense
$785,899
2.150%
$50,842.75 **
Fee Combined
Fee Combined
$2,500.00
Fee Combined
Fee Combined
$0.00
$0.00
$36,399.00
$785,899
* Required Field - variable information
** SBA Loan fee is financed with Debenture
Any transaction arising from this comparison is expressly subject to credit approval by Union Bank and to the exectution and delivery of
transaction documentation satisfactory to Union Bank. Additional Terms and Conditions not presented in this comparison will apply.
Amounts shown are for comparitive purposes only. Actual final transaction amounts may differ. Equal Opportunity Lender.
Voit Real Estate Services
|
Chase MacLeod
Shy Assar
|
|
cmacleod@voitco.com
sassar@voitco.com
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909.545.8091
909.545.8090
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OFFERING MEMORANDUM
14040–14042 CENTRAL AVE CHINO
OWNER / USER
LEASED INVESTMENT OPPORTUNITY
CHINO, CA
Exclusively Offered By:
Chase MacLeod
Vice President
P 909.545.8090
cmacleod@voitco.com
Lic # 01899515
Shy Assar
Associate
P 909.545.8091
sassar@voitco.com
Lic # 01964667
3280 Guasti Road, Suite 100, Ontario, CA 91761 • 909.545.8090 • Lic #01333376 | www.voitco.com
Licensed as Real Estate Salespersons by the CA Bur of Real Estate. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. ©2016 Voit Real Estate Services, Inc. All Rights Reserved. Licensed
#01333376