1360 logan ave
Post on 12-Apr-2017
31 Views
Preview:
TRANSCRIPT
ADVISORS
MashianAssociatesADDING VALUE
SALES | LEASING | ADVISORYDavid MashianSenior Vice President
(949) 954-3725 Direct
(310) 903-6907 Mobile
David.Mashian@cbcalliance.com
CA BRE Lic. #01332822
Steve von SeggernSales Associate
(949) 954-3722 Direct
(714) 305-7948 Mobile
Steve.vonSeggern@cbcalliance.com
Coldwell Banker Commercial
2600 Michelson Drive, Suite 100
Irvine, CA 92612
(949) 954-3700 Main
www.CBCAdvisors.com
1360 Logan Ave
Costa Mesa, CA 92626
MashianAssociatesADDING VALUE
Table of Contents
1. PROPERTY OVERVIEWProperty InformationProperty PhotosLocation MapAerial PhotosParcel MapTenant Overviews
2. AREA OVERVIEWCity Information and Area DescriptionDevelopments and TrendsDemographicsMarket Trends
3. RENTAL ANALYSISMarket Rent ComparableSummary of Rent ComparableRent Comparable Map
4. SALES ANALYSISIndividual Sales ComparableSummary of Sales ComparableSales Comparable Map
5. ON MARKET COMPARABLEOn Market ComparableOn Market SummaryOn Market Map
6. INVESTMENT OVERVIEWStrengths and WeaknessesPrice MatrixFinancial AnalysisRent RollPrice Sensitivity Analysis
MashianAssociatesADDING VALUE
1360 Logan Ave, Costa Mesa, CA 92626: Property Information
Building:Type: 3 Star Flex Light DistributionRBA: 8,075 SFStories: OneClass: BConstruction: Reinforced ConcreteYear Built: 1973Tenancy: MultiOwner Occupied: NoBuilding Height: 14’Docks: NoneDrive Ins: 9 Total; 8’ w x 10’ hCranes: NoneRail Spots: NoneCross Docks: NoneLevelators: NoneTruck Wells: NoneParking: 27 free Surface Spaces are available; Ratio of 2.83/1,000 SFTaxes: $093/SF (2015)
Land:
Land Acres: 0.49 ACLand SF: 21,201 SFBldg. FAR: 0.14Zoning: MGParcel: 141-191-29
MashianAssociatesADDING VALUE
Tenant OverviewsSIGN DEPOT: Offering a variety of highest quality custom signs including large format digital prints, interior and exterior signs, monument signs, stand-off wall displays, custom wall wraps, illuminated signs, fleet vehicle graphics and wraps, banners, magnetic signs, digital signs, sand blasted signs, and more.
SHUYOKAN RYU MARTIAL ARTS CENTER: Offers classes for adults, youth, and law enforcement in practical applications of the traditional martial arts of Yoshinkan Aikido, Kodokan Judo, Jujutsu and Shotokan Karate Jutsu.
SENSEI DYE: Of Shuyokan Ryu Martial Arts Center.
AIKIDO FEDERATION-CALIFORNIA:Aikido is a combination of many martial arts and has no form or patterns in the techniques, only the movements of heaven, earth and nature. Aikido aims to eliminate aggression by blending with an attack to reduce and control conflict.
I.T. TAPPING, INC:Machine shop, established 1987.
ANTHONY’S PURE WATER SYSTEMS:“The Water Doctors.” Accredited sales, service, and repairs of water purifier systems.
TAPPING
T.
I.
MashianAssociatesADDING VALUE
City Information and Area Description
Costa Mesa is to the action sports industry as Silicon Valley is to computers. The city, about a mile from the Pacific Ocean, has given birth or is now home to many of the leading companies in the surf-skate-wear industry, including Quicksilver, Hurley, Volcom, Paul Frank, and RVCA.
Costa Mesa's Westside, with reasonable rents and proximity to the Pacific Ocean (about one mile), has proven fertile soil for action sports companies and even businesses that cater to their customers such as Wahoo's Fish Tacos. The youth culture vibe has also sparked cutting edge retail centers in Costa Mesa such as The Camp, The Lab, and the SoCo Collection.
Costa Mesa is situated between Los Angeles and San Diego in the heart of affluent coastal Orange County, just one mile from the beach. It's intersected by three freeways. And it's adjacent to John Wayne Airport. Few cities in the United States can match Costa Mesa's location.
Demographics is another advantage. Costa Mesa and the surrounding community (which includes neighboring Newport Beach and Irvine) provide some of the most attractive demographics in the nation with purchasing power that generates more than $45 million in annual retail sales tax in a city whose population is 111,163.
City Hall also insures a business-friendly atmosphere, from its super low business license fees ($201 is maximum annual cost) to expedited services that cut through traditional red tape and get your business up and running without delay or government-induced headaches.
The retail environment is unique, allowing for developments such as South Coast Plaza (the most successful retail center in the United States), the counter-cultural Camp and LAB shopping centers, the cutting-edge SoCo Collection and The Triangle, and the East 17th Street Promenade that's become home to some of Southern California's most innovative and hottest retailers.
MashianAssociatesADDING VALUE
Market Rent Comparable
ADDRESSAVAILABLE SPACE(S) SF
BASE RENT/SF
LEASE TYPETOTAL BASE
RENTNOTES
1)
1260 Logan St 1,728 $1.05 NNN $1,814 OCCUPANCY RATE: 89%
Costa Mesa, CA 92626 DAYS ON MARKET: 15
PARKING RATIO: 4/1,000
YEAR BUILT: 1969
BUILDING SIZE SF: 15,552
2)
1281 Logan St 4,762 $0.95 IG $4,524 OCCUPANCY RATE: 85%
Costa Mesa, CA 92626 DAYS ON MARKET: 66
PARKING RATIO: 2/1,000
YEAR BUILT: 1970
BUILDING SIZE SF: 52,202
3)
2930 Grace Lane 2,121 $1.25 MG $2,651 OCCUPANCY RATE: 92%
Costa Mesa, CA 92626 DAYS ON MARKET: 66
PARKING RATIO: 4/1,000
YEAR BUILT: 1972
BUILDING SIZE SF: 26,000
4)
3303 Harbor Blvd 2,540 $1.38 IG $3,505 OCCUPANCY RATE: 100%
Costa Mesa, CA 92626 DAYS ON MARKET: 16
PARKING RATIO: 2.6/1,000
YEAR BUILT: 1973
BUILDING SIZE SF: 16,220
MashianAssociatesADDING VALUE
Summary of Rent Comparable
Property 1, $1.05
Property 2, $0.95
Property 3, $1.25
Property 4, $1.38
Average, $1.16
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
BASE RENT/SF
MashianAssociatesADDING VALUE
Individual Sales Comparable
1)
2)
3)
4)
ADDRESS PRICECLOSE DATE
CAP RATE(Market)
SQUARE FEET
PRICE/ SF
NOTES
2930+2940 College $4,800,000 2/1/2016 5.00% 24,400 $196.18 OCCUPANCY RATE: 100%
Costa Mesa, CA 92626 DAYS ON MARKET:
PARKING RATIO: 1.6/1,000
YEAR BUILT: 1960
1343 Logan Ave $1,875,000 5/1/2015 6.20% 12,020 $155.99 OCCUPANCY RATE: 100%
Costa Mesa, CA 92626 DAYS ON MARKET:
PARKING RATIO: 2.6/1,000
YEAR BUILT: 1960
3101 Red Hill Ave $3,400,000 8/7/2015 2.80% 11,200 $303.57 OCCUPANCY RATE: 100%
Costa Mesa, CA 92626 DAYS ON MARKET: 115
PARKING RATIO: 4/1,000
YEAR BUILT: 1980
3198 Airport Loop Dr $2,300,000 12/30/2015 3.40% 8,000 $287.50 OCCUPANCY RATE: 70%
Costa Mesa, CA 92626 DAYS ON MARKET: 62
PARKING RATIO: 3/1,000
YEAR BUILT: 1974
MashianAssociatesADDING VALUE
Summary of Sales Comparable
Property 1, 5.00%
Property 2, 6.20%
Property 3, 2.80%
Property 4, 3.40%
Average, 4.35%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
CAP RATE
Property 1, $196.18
Property 2, $155.99
Property 3, $303.57
Property 4, $287.50
Average, $235.81
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
PRICE/ SF
MashianAssociatesADDING VALUE
On Market Comparable
ADDRESS LIST PRICEON
MARKETCAP RATE(Market)
SQUARE FEET
PRICE/ SF NOTES
2990 Grace Ln $3,595,000 65 Days 4.00% 15,000 $239.67 OCCUPANCY RATE: 100%
Costa Mesa, CA 92626
PARKING RATIO: 4/1,000
YEAR BUILT: 1965
NOTE: Single tenant
3506 Lake Center Dr $3,359,200 26 Days 3.40% 11,693 $287.28 OCCUPANCY RATE: 100%
Santa Ana, CA PARKING RATIO: 4/1,000
YEAR BUILT: 1989
NOTE: Condo
151 Kalmus Dr $2,670,000 90 Days 2.90% 8,217 $324.94 OCCUPANCY RATE: 100%
Costa Mesa, CA PARKING RATIO: 3/1,000
YEAR BUILT: 1981
NOTE: Condo
3505 Cadillac Ave $1,434,000 95 Days 4.10% 6,000 $239.00 OCCUPANCY RATE: 100%
Costa Mesa, CA PARKING RATIO: 2.93/1,000
YEAR BUILT: 1984
NOTE: Condo
1)
2)
3)
4)
MashianAssociatesADDING VALUE
On Market Summary
Property 1, $240
Property 2, $287
Property 3, $325
Property 4, $239
Average, $273
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
PRICE/ SF
Property 1, 4.00%
Property 2, 3.40%
Property 3, 2.90%
Property 4, 4.10%
Average, 3.60%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
CAP RATE
MashianAssociatesADDING VALUE
Strengths and Weaknesses
STRENGTHS
1. Fully leased
2. Multi tenant
3. Long term tenants
4. High demand area
5. History of rapid replacement of tenants during vacancies
6. Limited supply of industrial in this section of Costa Mesa
WEAKNESSES
1. Has not been remodeled since construction
2. Some deferred maintenance
3. Low traffic location and zoning limits use and prohibits redevelopment
4. Abuts residential use
MashianAssociatesADDING VALUE
Price MatrixSALES COMPARABLE VALUE INDICATORS
SUBJECT PROPERTY SOLD COMPARABLES TOTALS
NOI $73,060 (NOI / CAP%) 4.35% $1,679,540
SF 8,075 (GLA X $/SF) $235 $1,897,625
VALUE BASED ON SOLD COMPARABLES AVERAGES$1,788,583
COST/SF $221
CAP RATE 4.08%
ON MARKET COMPARABLES VALUE INDICATORS
SUBJECT PROPERTY ON MARKET COMPARABLES TOTALS
NOI $73,060 (NOI / CAP%) 3.60% $2,029,444
SF 8,075 (GLA X $/SF) $273 $2,204,475
VALUE BASED ON MARKET AVERAGES$2,116,960
COST/SF $262
CAP RATE 3.45%
LOAN UNDERWRITING VALUE INDICATORS
FINANCING PARAMETERS LOAN INFORMATION
DSCR 1.30 NOI $73,060
INTEREST RATE 3.70% (NOI / DSCR) YEARLY DEBT SERVICE $56,200
LOAN TO VALUE 55% MONTHLY DEBT SERVICE $4,683
LOAN AMTZ 30 MAXIMUM LOAN $1,017,490
VALUE BASED ON AVAILABLE MARKET FINANCING $1,849,982
FINANCIAL ANALYSIS
PROPERTY DETAILS FINANCING SUMMARY
Address 1360 Logan Ave Loan Type New First Trust Deed
City Costa Mesa Loan Amount $1,003,750
State CA Interest Rate 3.70%
ZIP Code 92626 Loan TermsFixed 5 Years, Due 5
Years
Market Orange County (California) Years Amortized 30
Submarket Airport Area Ind Debt Service Coverage Ratio 1.32
Assessor's Parcel Number
141-191-29 Monthly Loan Payment $4,620
Year Built 1973
Zoning MG OPERATING DATA
Rentable SF 8,075
Lot Size SF 21,201 INCOME CURRENT MARKET
Parking Spaces 27 Scheduled Gross Income $92,055 $112,404
Parking Ratio 2.83/1000 Less Vacancy Reserve 3% $2,762 3% $3,372
Gross Operating Income $89,293 $109,032
PROPERTY OVERVIEW Expenses 31.0% $28,578 25.4% $28,578
CAM Reimbursement $12,345 $12,345
Price $1,825,000
Net Operating Income
$73,060 $92,799
Down Payment 45% $821,250 Loan Payments $55,441 $55,441
Loan Amount $1,003,750Cash on Cash Return
2.15% $17,619 4.55% $37,358
Price Per Rentable SF $226
Land Price Per SF $86 ESTIMATED ANNUAL EXPENSES
Cap Rate - Current 4.00%
Cap Rate -Market
5.08% Real Estate Taxes 1.25%of Price $22,813
Insurance $0.15Per SF $1,211
LOCATION Maintenance & Repairs $0.10Per SF $808
Management Fees 1%of Gross $921
Industrial multi-tenant commercial property located in airport area Utilities $0.15Per SF $1,211
with easy access to 405, 55, 73, and 5 fwys. Cleaning & Trash Removal $0.10Per SF $808
Reserves $0.10Per SF $808
Total Expenses $3.54Per SF $28,578
MashianAssociatesADDING VALUE
Rent RollRENT ROLL AND INCOME ANALYSIS
Unit # Tenant Name SF Monthly Rent Rent / SF % SF Market Rent / SF Monthly Rent
100 Anthony's Pure Water Solutions 1,075 $1,021 $0.95 13.31% $1.16 $1,247
101 I.T. Tapping 875 $831 $0.95 10.84% $1.16 $1,015
102 Tenant Unknown 875 $831 $0.95 10.84% $1.16 $1,015
103 Sign Depot 875 $831 $0.95 10.84% $1.16 $1,015
104 Tenant Unknown 875 $831 $0.95 10.84% $1.16 $1,015
105 Tenant Unknown 875 $831 $0.95 10.84% $1.16 $1,015
106 David Dye 875 $831 $0.95 10.84% $1.16 $1,015
107 Aikido Federation 875 $831 $0.95 10.84% $1.16 $1,015
108 Shuyokan Ryu Martial Arts 875 $831 $0.95 10.84% $1.16 $1,015
TOTALS 8,075 $7,671 $0.95 100% $1.16 $9,367Total SF Total Rent Average Average Total Rent
CURRENT MARKETTotal Monthly Income $7,671 Projected Monthly Income $9,367
Annual Gross Income $92,055 Projected Annual Gross Income $112,404
Current Average Rent Per Rentable SF $0.95 Projected Average Rent Per Rentable SF $1.16Rental Upside 22%
MashianAssociatesADDING VALUE
Price Sensitivity Analysis
PRICE CAP RATE COST/SF
$2,115,675 3.45% $262.00 SUBJECT PROPERTY INFORMATION
$2,054,054 3.56% $254.37 NOI $73,060
$1,994,227 3.66% $246.96 SF 8,075
$1,936,143 3.77% $239.77
$1,879,750 3.89% $232.79
$1,825,000 4.00% $226.01 MARKET PRICE
$1,770,250 4.13% $219.23
$1,717,143 4.25% $212.65
$1,665,628 4.39% $206.27
$1,615,659 4.52% $200.08
$1,567,190 4.66% $194.08 Percentage Change Variable: 3%
MashianAssociatesADDING VALUE
Disclosure and Confidentiality
Coldwell Banker Commercial Advisors (“Agent”) has been engaged as the exclusive agent for the sale of investment offering by the owner of the Property (“Seller”).
The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller.
The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.
This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived.
By taking possession of and reviewing the information contained herein, the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; andno portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent.
top related