27611 la paz 27612 el lazo...laguna niguel laguna niguel is a master planned community located in...

27611 La Paz & 27612 El LazoL A G U N A N I G U E L , C A L I F O R N I A

One of a Kind South Orange County Office Building - For Sale

Investment Properties-SoCal

Investment Overview 4

Investment Summary

Investment Highlights

Property Description 6

Property Details

Parcel Map

Site Plan

Floor Plans

Area Overview 14

City Overview

Local Map

County Overview

Regional Map

Financials 22

Rent Roll

Replacement Cost

Table of Contents

www.ipsocal.com/27611lapazFor more information on 27611 La Paz & 27612 El Lazo, please visit our website at

Exclusive Agents

Gary Stache

Lic. 00773736 | 949.725.8532

[email protected]

Anthony DeLorenzo

Lic. 01706686 | 949.725.8425

[email protected]

Pat Scruggs

Lic. 00851446 | 949.725.8520

[email protected]

Doug Mack

Lic. 01804065 | 949.725.8571

[email protected]

Mark Shaffer

Lic. 01253743 | 213.613.3758

[email protected]

Local Market Contacts

Keith Black

Lic. 01266477 | 949.725.8633

[email protected]

Jeff Carr

Lic. 01009600 | 949.725.8631

[email protected]

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Investment Overview

Investment Overview

Investment Properties-SoCal | 5

27611 La Paz Road & 27612 El Lazo Road Laguna Niguel, California

Investment Summary

Purchase Price $6,950,000

Price Per SF $183

Total Building Size 37,917 SF

Total Land Size 2.312 Acres

Property Website www.ipsocal.com/27611lapaz

Priced at $6,950,000 ($183 PSF),

significantly below the estimated

replacement cost of $9,099,986

($240 PSF).

Investment Highlights

ExcEptional HigH imagE ownEr/UsEr opportUnity

· One of the highest image buildings in South Orange County, with unique water features, interior rock and garden atrium oasis, people areas and wood highlighted balconies.

· An Owner/User has the opportunity to occupy up to 13,745 SF today and up to 20,291 SF in early 2015.

· Now is the time to take advantage of the market and protect your business from future rental market spikes. Rather than paying rent to a landlord or investing your money in an alternative investment, your rent will pay off the property mortgage and provide a more attractive after-tax return. An Owner/User will save 134% compared to leasing, with an after-tax equity build-up of $3.09 million over a 10 year period.

· Approximately half of the property is commercial, which is in high demand due to its location adjacent to all of the surrounding retail.

· Creative space with high ceilings and hardwood floors

· Flexible use property with multiple separate unique to the market access points

Dynamic soUtH orangE coUnty cornEr location

· Exceptional location with immediate access to the 73-Toll Road via the four way interchange at La Paz Road, providing easy access to Orange and San Diego County.

· One of the best office amenity locations in South Orange County. Within 2 miles of: 9 grocery stores, 115 restaurants, 16 banks, 20 health clubs, and 16 shopping centers

· La Paz is one of the market’s major thoroughfares

Area OverviewProperty Overview

Area Overview

Property Description


Property Details

ADDRESS 27611 La Paz & 27612 El Lazo

CITy Laguna Niguel

STATE California

ZIP 92677

BUILDINg TyPE Office/Commercial

yEAR BUILT 1981

STORIES One/Two

LAND SIZE (ACRES) 2.312

BUILDINg SIZE (SF) Office - 18,994 SF Commercial - 18,923 SF Total - 37,917 SF

ExTERIOR WALLS Tilt-up concrete panels and glass curtain walls

FOUNDATION Poured concrete slabs on grade

ROOF Flat with rolled composition roofing

CLEAR HEIgHT 12’ - 14’

LOADINg DOORS Two (2) grade-level doors for the commercial area

CONFIgURATION The office component is housed in the two-story portion of the structure. This area features an attractive entry decorated with small waterfalls and ponds. The entry leads to a two-story atrium that incorporates the use of additional ponds and fountains, and is also landscaped. This area features a number of individual office suites on both floors. The smallest unit consists of an individual room, the larger units have bullpen areas as well as perimeter offices. A few offices have some wood paneling but most have standard gypsum walls. One office features small interior balcony that looks out over the atrium.

FLOORINg Largely carpet, some vinyl tile and ceramic tile

LIgHTINg Recessed florescent fixtures

RESTROOMS Five (5)

HVAC The units are heated and cooled by roof-mounted package HVAC units

PLUMBINg The plumbing system is reportedly adequate for the existing use

FIRE SPRINkLERS Fire sprinklers were observed in the office and commercial areas

ELECTRICAL SERVICE 600 - 1,200 amp service (based on prior appraisal - electrical rooms could not be inspected)

ELEVATOR None

PARkINg 111 surface spaces

First Floor Plan

Suite150

Suite160

Suite101

Suite1A-100

Floor Plans

8 | 27611 La Paz & 27612 El Lazo

AnareobicEsc

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Sou

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AVAILABLE - 317 SF

InPro - Exp. 2/15 Suite 150: 5,074 SF Suite 160: 1,472 SF

total: 6,546 SF

anareobic - 12,377 SF - Exp. 2/17

Escrow Source - 5,249 SF - Exp. 3/17

Suite 100

Floor Plans

Second Floor Plan

Suite202

Suite208

Suite207

Suite206

Suite205

Suite

204

Suite203


AVAILABLE - 13,428 SF

SubHeaderParcel Map

10 | 27611 La Paz & 27612 El Lazo

ALLE

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AD

LA PAZ ROAD

EL LAZO ROAD

AVIL

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27671 La Paz Road(NAP)

27631 - 27651 La Paz Road(NAP)

27632 El Lazo Road(NAP)

27612 El Lazo Road

27611 La Paz Road

Site Plan


12 | 27611 La Paz & 27612 El Lazo

Area OverviewArea Overview

Area Overview

Area Overview

City OverviewlagUna nIgUEl

Laguna Niguel is a master planned community

located in the coastal San Joaquin Hills of Southern

Orange County, California. Located halfway

between San Diego and Los Angeles, Laguna

Niguel encompasses 14.72 square miles and is

surrounded by the cities of Aliso Viejo, Dana Point,

Laguna Beach, Laguna Hills, Mission Viejo and San

Juan Capistrano.

Laguna Niguel Demographics:

2014 Estimated Population 65,048

2019 Projected Population 67,939

2010 Census Population 62,979

2000 Census Population 62,895

growth 2010-2014 3.28%

growth 2014-2019 4.44%

2014 Estimated Median Age 43.94

2014 Estimated Average Age 41.11

2014 Estimated Households 25,094

2019 Projected Households 26,306

2010 Census Households 24,233


growth 2010-2014 3.55%

growth 2014-2019 4.83%

Over one-third of Laguna Niguel is designated open space and

is one of the most characteristic features of the city and is unique

to Orange County. Laguna Niguel’s proximity to the coast makes

it a desirable place to live and visit. The majority of the homes

in Laguna Niguel are single-family with a median home price of

$622,919. Laguna Niguel is home to 33 city and county parks

connected by walking trails and neighborhoods that offer a variety

of recreational activities including fishing, hiking and biking.

Laguna Niguel Top Employers:

rank EmPloyEr # oF EmPloyEES

1 Costco 500

2 Walmart 280

3 Capistrano Unified School District 245

4 Albertsons 210

5 The Home Depot 200

6 County of Orange 180

7 First Team Real Estate 140

8 Calstar Properties 125

9 kohl’s 121

10 Pacific Line Clean Up 120


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Local Map


Area Overview

18 | 27611 La Paz & 27612 El Lazo

orangE CoUnty

Situated between Los Angeles and San Diego, in the heart of sunny Southern California is Orange County. Once an agricultural empire for citrus growing, Orange County now boasts a thriving economy, a sophisticated arts scene, and a community of high-powered movers and shakers. Occupying the sloping plains of the Santa Ana Range’s foothills to the Pacific Ocean, the area is blessed with brilliant weather, a low unemployment rate, and a rapidly growing job market. Thriving on immigrant dynamism coupled with a long-running technological explosion, this conglomeration of 34 cities has become an “international world trade center.” A third of the firms in Orange County deal internationally, and nearly half of the population is ethnically diverse. If Orange County were a country it would rank in the top 30 economies worldwide.

This 798 square mile landscape hosts dozens of urban pods, and post-industrial communities that include restaurants, businesses, galleries, and anything and everything a person might need. People average less than a half an hour drive to work, and dozens of quality hospitals, universities, and entertainment centers are equally close by. Anaheim is one of the largest of these pods, hosting some of the most famous theme-park attractions and professional sports teams like the NHL’s Mighty Ducks and Major League Baseball’s Anaheim Angels. Irvine is the home of the University of California campus, a multicultural populace, and its own John Wayne Airport, while Fullerton boasts Cal State Fullerton. Surfers make Huntington Beach their home, and Newport Beach attracts affluent individuals seeking elegant dining and the arts..The average household income of $97,734 in Orange County is significantly higher than the national average of $69,303 making it one of the wealthiest areas in the

United States. In addition to being one of the nation’s wealthiest counties, Places Rated Almanac has rated Orange County in the top places to live in the Nation.

The crime rate in Orange County is far below the national average, with few violent crimes occurring each year. Although a little over three million people live in Orange County, the residents are spread out among more than 30 cities. Part of the low crime rate results from poverty rates that are significantly lower than the national average. There are fewer children living in poverty in Orange County than most other California communities.

Orange County benefits from its up-to-date communications network as well as its modern transportation. Strong infrastructure contributes to Orange County’s successful and positive business climate. Orange County is served by a large freeway network with more than 15 major Interstates and State Routes which provides access to the four neighboring counties of Los Angeles, San Diego, Riverside and San Bernardino. Centrally located in Southern California, Orange County has easy access to the ports of Los Angeles and Long Beach, the two largest container ports in the world.

The addition of new toll roads in South County and improvements to the existing freeway system in Central County will continue to fuel the growth well into the 21st century. Orange County is home to one major commercial airport; John Wayne, originally known as the Orange County Airport. John Wayne Airport handles over 9 million passengers annually through 14 different airlines. In 2011, a nearly $550 million expansion was completed that brought six new gates and new parking facilities allowing 2,000 additional spaces to be added to the airport.

Orange County Demographics:

2014 Estimated Population 3,140,085

2019 Projected Population 3,302,477

2010 Census Population 3,010,232

2000 Census Population 2,846,342

growth 2010-2014 4.31%

growth 2014-2019 5.17%

2014 Estimated Median Age 36.99

2014 Estimated Average Age 37.86

2014 Estimated Households 1,035,363

2019 Projected Households 1,091,341



growth 2010-2014 4.29%

growth 2014-2019 5.41%


EConomyConsistently ranked in Forbes magazine’s top 50 economically thriving metro areas, Orange County

enjoys lower business costs, a highly qualified workforce, and one of the lowest unemployment

rates in the country. Because of the more affluent population and an economic mix that is slanted

toward high-paid biotechnology and professional service jobs, incomes also rise faster than in

neighboring counties.

Everything from the computer software sector to the communications sector has flourished

in recent years. One-fifth of the workforce is now made up of high paying technical jobs and

professional jobs. Major employers in Orange County include Hughes Aircraft, Weber Aircraft,

Hewlett Packard, and IBM. Attraction and retention of the world’s leading companies will remain

high due to Orange County’s 17 colleges and universities, one of the best educated work

forces in the world, and an independent attitude. Other rapidly growing sectors are construction,

professional and business services, and leisure and hospitality. Tourism accounts for nearly 10%

of the county’s workforce, with places such as Disneyland and the giant, post- modern, fantasy

shopping Fashion Island Mall attracting countless visitors. The finance, insurance, and real estate

sectors are also experiencing growth, despite a corresponding decline in the rest of California.

Small businesses flourish in the area’s entrepreneurial climate. With job rates projected to grow

significantly each year, Orange County residents have a lot to look forward to. Orange County is

roughly 1% of the U.S. Population, but it has 3% of Fortune 500 companies. Places Rated Almanac

puts Orange County in the top ten cites in the nation for job growth and retention.

EDUCatIonThe education opportunities in Orange County are excellent and varied, the area is home to

two major universities. The University of California, Irvine, is the fastest growing campus in the U.C.

system. U.C.I. has grown in notoriety in recent years, in the mid 1990’s two faculty won the Nobel

Prize. It was the first time in history that a public university won two Nobel Prizes in the same year.

There are a host of other smaller, private, or religiously affiliated colleges in Orange County.

Chapman University, Cypress College, Fullerton College, golden West College, Saddleback

College, and many others are scattered across the area’s famous groves.

Orange County Top Employers:

RAnK EMPLoyER# of

EMPLoyEES

1 Walt Disney Co. 25,000

2 University of California, Irvine 21,800

3 St. Joseph Health 11,679

4 The Boeing Company 6,873

5 kaiser Permanente 6,300

6 Bank of America Corp 6,000

7 Memorial Care Health System 5,545

8 Target Corp 5,400

9 Cedar Fair LP 5,200

10 California State University, Fullerton 4,984

20 | 27611 La Paz & 27612 El Lazo

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P a c i f i c O c e a n

RANCHO SANTAMARGARITA

IRVINE

LAGUNAHILLS

FOOTHILLRANCH

FOUNTAINVALLEY

COSTA MESA

NEWPORTBEACH

LAGUNA BEACH

LAGUNA WOODS MISSIONVIEJO

ALISO VIEJO

SAN JUAN CAPISTRANO

LAKEFOREST

LAGUNANIGUEL

DANA POINT

TUSTIN

COTO DE CAZA

SAN CLEMENTE

HUNTINGTONBEACH

TUSTIN FOOTHILLSWESTMINSTER

SANTA ANA

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CYPRESS

FULLERTON

BUENA PARK

ORANGE

ANAHEIM

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CLEVELAND NATIONAL FOREST

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JOHN WAYNE AIRPORT

Regional Map


Area Overview


toUrISmMore than 43 million tourists visit Orange County

annually, spending approximately $8.7 billion and

supporting nearly 160,000 local tourism industry

jobs. With over a quarter of Orange County’s

landscape designated as open space, including

the 124,000-acre Cleveland National Forest,

the area is a haven for bikers, hikers, and other

outdoor enthusiasts.

Anaheim’s Disneyland, the most famous attraction

in Orange County, as well as the famed knott’s

Berry Farm, and Adventure City are among the

biggest attractions for kids of all ages. For sports

lovers, baseball fans have been cheering on the

California Angels at Edison Field since 1966. Also

nearby is Arrowhead Pond, home to the Mighty

Ducks hockey team. When the Ducks aren’t

at home, the Pond serves as a popular venue

for rock concerts and ice shows. Additionally,

Orange County’s 42 mile coastline offers all

types of seafaring activities including some world

class boating, snorkeling, scuba diving, and

fishing. There are many marina’s lining the coast

that offer boat cruises, fishing trips and charter

services. Visitors can explore areas such as the

“ Big Corona,” where mild waves beckon young

swimmers, or the numerous, rugged coves north

of Laguna Beach, where snorkelers and scuba

divers can view a plethora of underwater life.

Orange County is also renowned for its numerous

popular shopping destinations including: the

upscale outdoor Fashion Island Mall in Newport

Beach, the Brea Mall, and The Outlets at Orange,

Irvine Spectrum Center, Downtown Disney and the

luxury shopping center, South Coast Plaza in Costa

Mesa. South Coast Plaza is visited by approximately

24 million visitors annually and generates annual

sales of $1.5 billion, making it the highest grossing

center in the United States. Besides providing an

extravagant shopping experience with over 250

stores South Coast Plaza offers many services to

guests such as foreign language assistance, shuttle

services, and money exchange.

Orange County Top Attractions:

• laguna art museum

• mission San Juan Capistrano

• orange County Zoo

• Disneyland Park

• Disney’s California adventure Park

• knott’s Berry Farm

Orange County Overview (Continued)

Financials

22 | 27611 La Paz & 27612 El Lazo

Rent Roll

15

6/25/2014This page is part of a package and is subject to the disclaimer on the Occupancy Costs Summary.

CBRE Financial Consulting

27611 La Paz - 27612 El LazoRent Roll

Tenant Name Floor Rate & Amount Type & Suite Number SqFt per Year Changes Changes Operating Expense Lease Dates & Term Bldg Share per Month on to Reimbursements _____________________ ___________ _____________ _________ ______ __________________ 1 The Escrow Source, Inc $21.23 Dec-2014 $21.81 2012 BY

Office, Suite: 100 5,249 $111,444 Dec-2015 $22.38 Dec-2011 to Mar-2017 13.8% $1.77 64 Months $9,287 2 OWNER/USER (101) MTM $0.00 - - GROSS

Office, Suite: 101 317 $0 Expires Aug-2039 0.8% $0.00 $0 Lease expired 4/13. Tenant is currently on month-to-month terms at $720 /Mo. Analysis assumes tenant vacates and Owner/User occupies the space. 3 Inpro Marketing Corporation $8.98 - - NNN

Commercial, Suites: 150/160 6,546 $58,752 (Commercial) Mar-2012 to Feb-2015 17.3% $0.75 36 Months $4,896 4 OWNER/USER (202/203) $0.00 - - GROSS

Office, Suites: 202/203 5,891 $0 Expires Aug-2039 15.5% $0.00 $0 5 OWNER/USER (204) MTM $0.00 - - GROSS

Office, Suite: 204 218 $0 Expires Aug-2039 0.6% $0.00 $0 Lease expired 12/13. Tenant is currently on month-to-month terms at $350 /Mo. Analysis assumes tenant vacates and Owner/User occupies the space. 6 OWNER/USER (205/206/207) $0.00 - - GROSS

Office, Suites: 205/206/207 6,792 $0 Expires Aug-2039 17.9% $0.00 $0 7 OWNER/USER (208) MTM $0.00 - - GROSS

Office, Suite: 208 527 $0 Expires Aug-2039 1.4% $0.00 $0 Lease expired 8/13. Tenant is currently on month-to-month terms at $575 /Mo. Analysis assumes tenant vacates and Owner/User occupies the space. 8 Anareobic, LLC $8.57 Dec-2014 $9.64 NNN

Commerical, Suite: 1A-100 12,377 $106,032 Dec-2015 $10.17 (Commercial) Dec-2011 to Feb-2017 32.6% $0.71 63 Months $8,836

Tenant has a one-time Termination Option at the 36th Mo with six (6) months written notice and an early termination penalty of $27,060. Tenant has one (1) - three (3) year option at FMV with six (6) - nine (9) months notice. Total SqFt 37,917 Total Available SqFt 13,745

Financials


Estimated Replacement Cost

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Land Size 100,711 Square FeetBuilding Size 37,917 Square Feet

HARD COSTS

Land Acquisition Cost @ 30.00$ 3,021,322$ Hard Costs @ $100 on Office

$50 on Commercial 2,845,550$ Tenant Improvements @ $45 on Office

$10 on Commercial 1,043,960$ 6,910,832$ 76%

SOFT COSTS

A & E @ 2.0% 138,217$ Insurance $0.37 PSF 14,029 Property Taxes 1.03% Hard Costs 71,182 Development Fees $3.00 PSF of Bldg. Area 113,751 Legal 1% Hard Costs 69,108 Developer's Profit 8% Hard Costs 552,867 Loan Fee 1% Hard Costs 69,108 Contingency 2% Hard Costs 138,217 Interest on Land Carry 3% Land Cost 90,640 Interest on Construction 5% Hard Costs 345,542 Interest on Lease Up 3% Hard Costs 207,325 Leasing Commission 10.00$ PSF 379,170

2,189,154$ 24%

9,099,986$ 100%

240.00$

Economic Rent CalculationReplacement Costs 240.00$ Required Return 9.0% 21.60$ Operating Expenses $0 -$ Less Vacancy/Credit 5% 1.08$ Economic Rent Required, PSF per year (NNN) 22.68$ Economic Rent Required, PSF per month (NNN) 1.89$

TOTAL HARD COSTS

TOTAL SOFT COSTS

Total Development Costs

Cost Per Square Foot

Exclusive Agents

Gary Stache

Lic. 00773736 | 949.725.8532

[email protected]

Anthony DeLorenzo

Lic. 01706686 | 949.725.8425

[email protected]

Pat Scruggs

Lic. 00851446 | 949.725.8520

[email protected]

Doug Mack

Lic. 01804065 | 949.725.8571

[email protected]

Mark Shaffer

Lic. 01253743 | 213.613.3758

[email protected]

Local Market Contacts

Keith Black

Lic. 01266477 | 949.725.8633

[email protected]

Jeff Carr

Lic. 01009600 | 949.725.8631

[email protected]

CAPITAL MARkETS | INVESTMENT PROPERTIES-SOCAL

3501 Jamboree Rd., Ste 100

Newport Beach, CA 92660

www.ipsocal.com

27611 la paz 27612 el lazo...laguna niguel laguna niguel is a master planned community located in...

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