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A CBRE NATIONAL PARTNERS INDUSTRIAL INVESTMENT OPPORTUNITY
20151
CHATSWORTH, CANORDHOFF STREET
High-Quality Office Building Totaling 73,595 SF 100% Leased to the County of Los Angeles through June 2025 � Strategically located in the San Fernando Valley
1 20151 NORDHOFF STREET
THE OFFERING
CBRE, Inc. is pleased to offer an exciting opportunity to acquire 20151 Nordhoff Street, a 100% leased high quality office building located in the desirable San Fernando Valley submarket of Los Angeles. Built in 1966 and renovated in 1980 the 73,595 SF single story office building, with excellent identity on a main street, is situated on 3.63 acres of land and is leased to the County of Los Angeles, with a Moody’s credit rating of Aa3, through June 2025.
The building is located in the West San Fernando Valley in the city of Los Angeles (Chatsworth). Tenants are drawn to this location given multiple nearby retail amenities including the Northridge Plaza Shopping Center and Northridge Fashion Center. This location also benefits from the Northridge Metrolink Station, just 2 miles from the building, and Metro Bus Stops at the intersections of Nordhoff St. and Winnetka Ave. (northwest corner) and Nordhoff St. and Oso Ave (southeast corner).
The building also has convenient access to the CA-118, CA-101, and I-405 freeways and approximately 7 miles from the Van Nuys Airport, 18 miles from the Bob Hope (Burbank) Airport, and 27 miles from Los Angeles International Airport.
This investment opportunity offers additional cash flow with the repayment by the County of Los Angeles of a $3.7 million allowance at 7% interest for 60 months. This adds an additional $72,863 per month in cash flow.
Total Price $19,503,000Year 1 Cap Rate 5.47%Year 1 NOI $1,066,162Year 2 Cap Rate 5.57%Year 2 NOI $1,085,766
Address 20151 Nordhoff St., Chatsworth, CASquare Footage 73,595Land Size 3.63 AcresTenant County of Los AngelesLease Expiration June 2025Occupancy 100%Year Built 1966 (Renovated 1980)
INVESTMENT THESIS20151 Nordhoff Street offers investors a rare opportunity to acquire a well-located office building which is 100% leased to the County of Los Angeles through June 2025. Long-term leased government facilities continue to be in very high demand.
2EXECUTIVE SUMMARY
INVESTMENT HIGHLIGHTSPROPERTY HIGHLIGHTS
HIGH-QUALITY OFFICE BUILDING• The office building totals 73,595 square feet and consists of a mix of private
and bull-pen style offices as well as a large lunch room. • The property is fully sprinklered and features a fenced, lit, and secure
parking lot which is surrounded by a wrought iron fence.• Originally designed as an industrial/R&D building, it was converted
to 100% office use for the County of Los Angeles as the surrounding market continues to see increased density with many properties getting converted to higher and better uses.
• The previous tenant’s lease expired in September 2006 (Health Net, Inc.), and the County of Los Angeles signed their lease in October 2006. The minimal downtime demonstrates the demand for this location.
BELOW REPLACEMENT COST• High construction costs, coupled with a lack of available land have
created barriers to entry for competitive developments. This provides an opportunity to purchase the project at a price that is below replacement cost, with no forecasted new development.
CAPITAL IMPROVEMENTS• Recent improvements to the building include new paint, new parking lot slurry and
striping, and upgraded restrooms. Additionally, with the recently signed lease extension, the landlord will be investing approximately $1.5 million in additional tenant improvements , including a new entry-way (as shown on P. 9).
• In 2006 when the County of Los Angeles occupied the building, the following improvements were made:
- New roof - New package HVAC units throughout - New restrooms - New kitchen and kitchenettes - New landscaping (and further replaced in 2016)
ADDITIONAL CASH FLOW AT 7% RETURN• Landlord will fund an allowance of approximately $3.7 million for additional improvements
and FF&E will be paid back by the County of Los Angeles over (via promissory note) five (5) years at 7% interest. This adds an additional $72,863 per month in cash flow.
• The IRR on a 10 year run is 8.23% including the additional amortization.
LOCATION HIGHLIGHTSSTRATEGIC SAN FERNANDO VALLEY LOCATION
• Located at the northwest corner of Nordhoff St. and Comanche Ave., the building is just 3 miles from the CA-118, 5 miles from the CA-101, and 6 miles from the I-405, which provide excellent access to Ventura and Los Angeles Counties as well as the Southern California Freeway network. The building also offers convenient access to the I-5 and I-210 freeways.
PROXIMITY TO NEW DEVELOPMENTS IN THE AREA• Located just a ½ mile away from the building (20000 Prairie St. Chatsworth) “24” will be a next generation live/work/play campus concept. The project broke ground in November
2016. Owned by MGA Entertainment (creator of the Bratz doll), it is being developed by UNCOMMON. • The site will feature over 255,000 SF of creative office space, dining and retail options and production studios. The project will also include approximately 660 luxury residences.
NEARBY NEIGHBORHOOD AMENITIES• Northridge Plaza Shopping Center and Northridge Fashion Center are both within close proximity of the building. Within these shopping centers, employees will benefit from Costco
Wholesale, Best Buy, Lowe’s, 24 Hour Fitness, and various restaurants. The property is also within a mile of Pacific Theatres.• Several airports are within a short drive - 7 miles from the Van Nuys Airport, 18 miles from the Bob Hope (Burbank) Airport, and 27 miles from Los Angeles International Airport. Cal State
Northridge is within 3 miles from the property and Pierce College is within 4 miles.• Northridge Station, a Metrolink station, is located approximately 2 miles west of the property. This Metrolink begins at LA Union station and travels all the way to East Ventura, offering
employees an economical and efficient way to commute to the property.
3 20151 NORDHOFF STREET
TENANCY HIGHLIGHTS100% LEASED TO HIGHLY COMMITTED TENANT
• The County of Los Angeles, and specifically, the Department of Children and Family Services (DCFS) was established in 1984 and is the largest child protective services agency in the nation.
• DCFS has been in the building since 2006. This location is critical as their business depends on being physically located within the community it serves, limiting relocation options. This bodes well for long-term tenancy.
• Executed in June 2016, the new lease extension allows for the space to also be used for outpatient mental services to children, youth and their families.
• In 2017, the Department of Mental Health (DMH) will occupy approximately one-third of the building, and the DCFS will continue to operate in the remaining two-thirds of the building. The DMH will conduct counseling, group therapy and other psychological uses at the property.
• Long term government leased facilities are in high demand.
MARKET HIGHLIGHTSSTRONG DEMOGRAPHICS
• Located in the West San Fernando Valley, this is an extremely attractive location given its access to a large highly educated workforce and proximity to highly affluent neighborhoods, schools and retail amenities.
• With 2.2 million people within 15 miles and 8.4 million people within 35 miles, the property is located in a dense suburb of the Greater Los Angeles area.
• Within 15 miles of 20151 Nordhoff St., there are 1.1 million people employed at 104,609 businesses.
• Median household income within 15 miles of the property is $71,526 (average income is $105,878) , which is 22% higher than the national average.
DYNAMIC OFFICE MARKET• The greater San Fernando Valley office market consists of over 21 MSF
of Class A and B office space. • The San Fernando Valley reports 252,950 SF of positive net office
absorption and 45,303 SF in the first three quarters of 2016. As a result, the direct vacancy rate is 13.5%, which is significantly below the SFV pre-recession high office vacancy rate of 19.3% set at the end of 2010.
• Due to its competitive price advantage over the neighboring West Los Angeles market and high quality of life, the San Fernando Valley continues to draw national and regional tenants, including corporate headquarter facilities for such companies as MiniMed, JD Power & Associates, Dole and Sunkist Growers.
4EXECUTIVE SUMMARY
AERIAL
NORDHO
FF ST
WINNETKA AVE
NORTHRIDGEFASHION CENTER
NORTHRIDGE METROLINK STATION
NORTHRIDGEPLAZA SHOPPING CENTER
COMANCHE AVE
SUNB
URST
ST
OSO AVE
BA
HA
MA ST
4055
118
20151NORDHOFF STREET
5 20151 NORDHOFF STREET
LOCAL MAP
101
101
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101
405
405
405
405
5
118118
118
118
27
27
27
Wells Dr
Serr
ania
Ave
De S
oto
Ave
Corbin Ave Tampa Ave
Vana
lden
Ave
Ronald Reagan FwyRonald Reagan Fwy
Chatsworth St Chatsworth St
Devonshire St
Lassen St
Plummer St
Nordhoff St
Roscoe Blvd Roscoe Blvd
Strathern St
Sherman Way
Chase St
Vanowen St
Oxnard StOxnard St
Vanowen St
Balboa BlvdBalboa Blvd
White Oak Ave
Lindley AveLindley Ave
Reseda Blvd
Wilbur Ave
Corbin Ave
Winnetka Ave
De Soto Ave
Topanga Canyon BlvdTopanga Canyon Blvd
De Soto Ave
Canoga AveShoup Ave
Fallbrook Ave
Woodlake Ave
Mason Ave
Mason Ave
Winnetka Ave
Corbin Ave
Tampa Ave
Tampa Ave
Wilbur Ave
Reseda Blvd
White Oak Ave
Balboa Blvd
Hayvenhurst Ave
Woodley Ave
Woodley Ave
San Diego FwySan Diego Fwy
Haskell Ave
Golden State Fwy
Sepulveda Blvd
Van Nuys Blvd
Woodman Ave
Van Nuys Blvd
Sepulveda Blvd
Kester Ave
Hayvenhurst Ave
Victory Blvd
Burbank Blvd
Burbank Blvd
Victory BlvdTopham St
Ventura Fwy
Ventura FwyVentura FwyVentura Blvd
Victory Blvd
Sherman WaySherman Way
Saticoy St Saticoy St Saticoy St
Strathern St
Parthenia St Parthenia St
Roscoe Blvd
Nordhoff St Nordhoff St
Plummer St Plummer St
Ronald Reagan Fwy
Filmore
St
Lassen St
Devonshire St
San Fernando Mission Blvd
Rinaldi St
Santa Susana PassState Historic Park
StoneyPoint Park
ChatsworthOaks Park
ChatsworthReservoir
San FernandoMission Catholic
Cemetery
Encino GolfCourse
WoodleyPark
Shepherd of theHills Church
The JapaneseGardenWarner
Center
PorterRanch Granada
Hills
MissionHills
PanoramaCity
SanFernando
Chatsworth
CanogaPark
WoodlandHills
Van Nuys
Northridge
North Hills
Reseda Lake Balboa
Winnetka
Van NuysAirport
20151NORDHOFF STREET
LA METRO BUS STOP
6EXECUTIVE SUMMARY
REGIONAL MAP14
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Los PadresNational Forest
AngelesNational Forest
Mt SanAntonio
Catalina IslandEssential
Fish HabitatConservation Area
Los Angeles
VentucopaPine Mountain
ClubGorman
Rosamond
Edwards AFB Hinkley
Helendale
Adelanto
Victorville
Hesperia
Wrightwood
Phelan
Lake LosAngeles
Lancaster
Palmdale
Quartz Hill
Littlerock
ActonCastaic
OjaiSanta Barbara
Ventura
Oxnard
Port Hueneme
Simi Valley
ThousandOaks
Malibu Santa Monica
Torrance
Long Beach
Anaheim
Irvine
NewportBeach
Port of Los Angeles
Port of Long Beach
Dana Point
Avalon
Two Harbors San Clemente
Murrieta
Lake Elsinore
Riverside
Chino
San Bernardino
Whiteman Airport
Burbank Airport
Ontario International Airport
John Wayne Airport
LAX Airport
Van Nuys Airport
Apple Valley
Lebec
ChannelIslands ofCalifornia
San NicolasIsland
20151NORDHOFF STREET
7 20151 NORDHOFF STREET
SITE PLAN
COUNTY OF LOS ANGELESEXP. JUNE 2025
73,595 SF
NORDHOFF STREETNORDHOFF STREET
BAHAMA STREETBAHAMA STREETCOMANCHE AVENUECOMANCHE AVENUE
N
NEW ENTRY RENDERING
20151NORDHOFF STREET
© 2016 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.
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