Download - PERFECT INVESTOR OR OWNER-USER OPPORTUNITY
OFFERING MEMORANDUM
RARE MEDICAL CENTRIC OFFICE BUILDING C0‑ANCHORED BY HIGH
CREDIT GOVERNMENT TENANT
PERFECT INVESTOR OR OWNER-USER OPPORTUNITY
JOHNNY CHOILic. +1 213 613 3344
MATT AGUILARLic. 02112401
+1 213 613 [email protected]
INVESTMENTHIGHLIGHTS07
EXECUTIVE SUMMARY04
FINANCIAL ANALYSIS25
AREADEMOGRAPHICS29
CONTENTS
AFFILIATED BUSINESS DISCLOSURE
CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).
CONFIDENTIALITY AGREEMENT
Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.
DISCLAIMER
This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to thegeneral economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.
Copyright Notice
© 2021 CBRE, Inc. All Rights Reserved.
PROPERTY DESCRIPTION10 Building Photos, Floor Plans
MARKET OVERVIEW16 Glendale Market, Medical Office Market,
Development, Local Amenities
Sale Comps
5
EXECUTIVE SUMMARY
04Offering
CBRE is pleased to exclusively offer for sale the 100% fee simple opportunity to
acquire 710 S. Central Avenue, (the “Property”), a highly improved professional value-
add, four-story office building located in Glendale, California. Totaling 36,437 square
foot, modern structure is situated over ground and subterranean levels of parking with a
dedicated count of 105 spaces. Built in 1991, the Property is well maintained and in stellar
condition with tenant and capital improvements totaling over $4M since 2016. The California
State’s Board of Barber and Cosmetology, a government entity, occupies the entire 4th floor, which
is approximately a third (+33.68%) of the leasable area, providing durable credit and income with a
lease out to 2029. California Cardiac Institute (CCI), the Seller, could either lease back or vacate their
portion (+24.7%) upon close of escrow; the remaining medical spaces have short term expirations
affording an owner-user or investor with multiple options.
One of the more significant attractions of the Property is its proximity to local destinations
like the iconic Americana and Glendale Galleria located 5-blocks to the North. Glendale
Memorial Hospital, with a licensed bed count of 334, is a 4- minute drive South. The
entire City of Glendale has been experiencing a tremendous amount of investment
with corporate migrations from Legal Zoom, Dream Works, Whole Foods, Canon,
Children’s Hospital of LA, and Cisco. This timely opportunity allows for an incoming
investor / owner-user the multiple optionality to acquire a well-positioned,
government anchored asset in one of the densest and burgeoning cities of
Southern California.
710 S. CENTRAL AVE, Glendale, CA6
DOWNTOWN GLENDALEDOWNTOWN GLENDALE
Colorado StColorado St
Central Ave
Central Ave
GLENDALE FASHION CENTER
SUBJECT PROPERTY
INVESTMENT HIGHLIGHTS
07
9
DOWNTOWN LOS ANGELESDOWNTOWN LOS ANGELES
SUBJECT PROPERTY
Cent
ral A
veCe
ntra
l Ave
Property
Overview
• Rare owner-user medical office opportunity with ample parking near Downtown Glendale –
Subject property was built in 1991 and offers ±105 spaces for parking on 2 levels of the building.
Parking is limited in the area and provides the potential for additional revenue.
• Solid credit co-anchor tenancy – the Department of Consumer Affairs Board of Barbering and
Cosmetology is the largest tenant in the building, occupying approximately 12,271 square feet and has
a lease expiring in 2029. This provides a great opportunity to acquire an asset with a government backed
lease.
• High traffic corridor in an amenity rich Downtown Glendale – Property is located within the dense Glendale
submarket, with over 27,000 cars per day reported on South Central Avenue and West Maple Street.
Additionally, the area is extremely walkable with attractions like Glendale Galleria, The Americana on
Brand, Porto’s Bakery and Café and various other restaurants along Colorado Street.
• Outstanding transit location – Glendale has impeccable foot traffic and transit services including
its own bus services, the Beeline, with 13 routes connecting customers to Jet Propulsion
Laboratory (JPL), the City of Burbank, and the Metrolink Stations in both Burbank and
Glendale. Strategically positioned, the property provides easy access to the I-5, SR-2,
SR-134, and the 210 freeways.
• Exceptional Glendale demographics – Subject property is located walking distance
from the heart of Downtown Glendale and features a city population of 246,000
and household incomes exceeding $98,000 within a 3-mile radius.
8 710 S. CENTRAL AVE, Glendale, CA
11
PROPERTY DESCRIPTION
10 Site
Description
Physical
Description
Address: 710 S. Central Avenue
City, State: Glendale, California
Year Built: 1991
Gross SF: 40,461
GLA: 36,437
Land SF: 22,651
Occupancy: 100%
Stories: 4
Current Use: Medical / Government
Construction: Reinforced Concrete & Steel
Roof Type: Flat Built-up Composition
Foundation: Concrete
Zoning: GLC3*
Floor-to-Area Ratio: 1.79
Parking: 105 Spaces
APN: 5641-013-004
Tenancy: Multi
Highway Access: 2, 5, 134 & 210
Ceiling Height: 11.5’
Fire Protection: Sprinklers
Elevators: (2) Passenger Elevators
Typical Floor SF: 10,115
Cross Street: Maple Street
710 S. CENTRAL AVE, Glendale, CA14 15
EXIT
EXIT
Floor
PlansFirst Floor
Second Floor
EXIT
Third Floor
Fourth Floor
1st floor lobby, office and parking VIRTUAL TOUR
3rd floor VIRTUAL TOUR
2nd floor VIRTUAL TOUR
17
MARKET OVERVIEW
16Glendale
MarketLocated minutes away from downtown Los Angeles, Pasadena, Burbank, Hollywood, and
Universal City, Glendale is the fourth largest city in Los Angeles County and is surrounded by
Southern California’s leading commercial districts.
As one of its core functions, Glendale provides well-maintained streets and a variety of transportation
services. The City’s historic success at attracting employers is partially attributed to the result of its
location at the center of four major freeways including the I-5 Golden State Freeway, SR-2 Glendale
Freeway, ST-134 Ventura Freeway, and the 210 Foothill Freeway; all provide easy access for residents, workers,
and customers from around the region. Glendale also offers its own bus services, the Beeline, with 13 routes
connecting customers to Jet Propulsion Laboratory (JPL), the City of Burbank, and the Metrolink Stations in both
Burbank and Glendale.
The Bob Hope Airport in Burbank serves the Los Angeles area including Glendale, Pasadena and the San Fernando
Valley. It is the only airport in the greater Los Angeles area with a direct rail connection to downtown Los Angeles.
The City of Glendale is located about 30 minutes from Los Angeles International Airport (LAX) which is a
commerce leader and designated as a world-class airport for its convenient location, modern facilities, and
superior sea/air/land connections.
Businesses and residents alike have taken advantage of Glendale’s central location, reputation for
safety, excellent business environment, outstanding schools, state-of-the-art healthcare facilities, and
growing restaurant and entertainment options. Glendale is also one of Southern California’s leading
office markets featuring a wide range of properties and amenities. The City has over six million
square feet of office space and is home to such recognized firms as Walt Disney Imagineering,
ServiceTitan, IHOP / Applebees, DreamWorks, LegalZoom, and Public Storage.
Glendale prides itself on the quality of services it provides to the community. It is a full-
service City, which includes a water and electrical department. The City operates its
own power plant capable of serving the electrical needs of the entire city, although
the majority of power is currently imported from other areas for cost savings.
Water comes primarily from the Metropolitan Water District, along with a small
portion from local wells.
710 S. CENTRAL AVE, Glendale, CA18 19
Medical
Office MarketInvestment Appeal
Medical office provides recession resistant qualities that
appeal to investors and developers alike due to demand
in all phases of the economic cycle. The average medical
occupier tends to occupy their location for a long period of
time, typically 5 years on average based on CBRE leasing data,
and their localized patient base and highly improved space
makes it inconvenient to relocate without significant planning
and effort. Patient activity at MOB locations has picked up as
local practitioners attempt to catch up from the brief period
of time they closed their doors. As a result, many physicians
and medical occupiers are seeking to upgrade either existing
space or pursue a higher quality location to better serve their
clients and grow their business.
Distance to Major Hospitals
Dignity Health – Glendale Memorial 0.9 miles Adventist Health Glendale 2.4 milesChildren’s Hospital Los Angeles 3.9 milesHollywood Presbyterian Medical Center 4.2 milesLAC + USC Medical Center 7.6 miles
DevelopmentMOB development has accelerated through the end of 2020 with several
new projects being proposed throughout the close of the year.
710 S. CENTRAL AVE, Glendale, CA20 21
• Tri-Cities market remains one of the hardest hit markets by sublease availability and total vacancy in Greater Los Angeles (GLA), led by multiple large block availabilities in Pasadena.
• Tenants are beginning to execute on newly revamped real estate plans that were previously put on hold in favor or short term renewals.
• Increased interest from the Life Science and Biotech industries paired with existing pent up demand from local business service firms and incumbent entertainment occupiers is fueling activity across the Tri-Cities region.
INCREASED TENANT ACTIVITY BOLSTERS LEASE RATES IN TRI-CITIES
SUBMARKET WRAP UPTRI-CITIES | Q1 2021
Inventory
26,781,038 SF Lease Rate$3.37 FSG
Direct Vacancy14.1%
Net Absorption-57,799 SF
SUBMARKET WRAP UP
ASKING RATE VS. DIRECT VACANCY• Direct Vacancy
decreased slightly from last quarters 14.2% to 14.1% to close out Q1 2021.
• Lease rates saw their first increase since Covid began as a result of increased tenant demand and higher quality space being placed on the market for lease.
$3.30
$3.36
$3.39
$3.37
$3.33
$3.29
$3.37
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
$3.24
$3.26
$3.28
$3.30
$3.32
$3.34
$3.36
$3.38
$3.40
Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Dire
ct V
acan
cy (%
)
Aski
ng R
ate
(FSG
)
Tri-Cities Office Market Overview Q1 2021 2
DIRECT VACANCY BY DISTRICT
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Arcadia/Monrovia
Burbank
Glendale
North Hollywood
Pasadena
Studio City
Universal City
Direct Vacancy (%)
TOP LEASE TRANSACTIONS
TOP SALE TRANSACTIONS
Confidential Entertainment Tenant 2300 W Empire Ave| Burbank
51,365 SF | Expansion
Open Text 1055 E Colorado Blvd |Pasadena
40,000 SF | Renewal/Contraction
Azusa Pacific University604 E Huntington Dr | Arcadia/Monrovia
32,750 SF | Renewal
HealthNet of CA 101 N Brand Blvd |Glendale
24,410 SF |Renewal
Cardinia Real Estate Inc. 2 N Lake Ave | Pasadena
20,481 SF | Renewal
Media Center North BUYER: The Wonderful Company
SELLER: Goldstein Planting InvestmentsPRICE: $42.2M| $/SF: $448.62
1100 El Centro Street BUYER: South Pasadena Unified School District
SELLER: Samuel J & Sharon S Muir TrustPRICE: $10.75M | $/SF: $522.05
350 W Arden Avenue BUYER: Anush Mnatsakanyan
SELLER: Glauber/Berenson AttorneysPRICE: $6.25M | $/SF: $390.63
Fairmont Plaza BUYER: Dr. Christopher Lau, MD
SELLER: Joyce GainesPRICE: $5.2M | $/SF: $311.09
3100 New York Drive BUYER: Alvarez & Marsal Holdings, LLC
SELLER: Graymark CapitalPRICE: $33M | $/SF: $201.10
9.6%
5.1%
30.6%
18.4%
9.4%
5.3%
CBRE Glendale Office
17.0%
Tri-Cities Office Market Overview Q1 2021 3
710 S. CENTRAL AVE, Glendale, CA22 23
966,000 1,017,000819,500
991,5001,176,000
1,026,000887,000
1,124,000
0
500,000
1,000,000
1,500,000
Q 2 2 0 1 9 Q 3 2 0 1 9 Q 4 2 0 1 9 Q 1 2 0 2 0 Q 2 2 0 2 0 Q 3 2 0 2 0 Q 4 2 0 2 0 Q 1 2 0 2 1
SQ F
T
TRI-CITIES TENANT DEMAND BY SQFT
BLDG COUNT
INVENTORY(SQ. FT.)
TOTAL AVAILABILITY
NET ABSORPTION
(SQ. FT.)
ASKING RATE (FSG)
LARGE BLOCKS
(50K+ SF)DRIVING INDUSTRIES
Arcadia/Monrovia 21 1,461,170 18.6% 6,350 $2.76 0Architect/Engineers Health Care, Technology
Burbank 53 7,072,181 8.2% (32,413) $3.84 0Media-Entertainment, Financial Services, Technology
Glendale 49 6,666,559 21.1% (29,403) $3.25 1 Insurance Financial Services/Business Services, Legal
North Hollywood 12 1,320,866 36.2% (6,262) $3.49 2Media-Entertainment Creative Industries, Health Care
Pasadena 72 8,781,197 28.4% 17,393 $3.35 10Financial Services, Technology, Business Services
Studio City 6 316,085 11.2% (1,460) $3.61 0Media-Entertainment, Technology Business Services
Universal City 5 1,162,980 15.5% (12,004) $3.32 0Media-Entertainment, Business Services, Creative Industries
TOTAL 218 26,781,038 20.3% -57,799 $3.37 13
TRI-CITIES
ARCADIA/MONROVIAARCADIA/MONROVIA
PASADENAPASADENAGLENDALEGLENDALE
BURBANKBURBANK
STUDIO CITYSTUDIO CITY UNIVERSAL CITY
UNIVERSAL CITY
NORTH HOLLYWOODNORTH HOLLYWOOD
El Monte West Covina
Downtown
AzusaArcadia
Rosemead
Alhambra
Altadena
La PuenteMontebello
Temple City
Culver City
Baldwin Park
Monterey Park
Beverly Hills
Pacoima
Van Nuys
Sierra Madre
La Crescenta
Sherman Oaks
South Pasadena
Valley Village
Hollywood
La Canada Flintridge
MOS#372387
TRI-CITIES TENANT DEMAND
As higher quality space has hit the market in the form of newly vacated locations in existing class A locations and in new supply from locations such as NoHo West and the upcoming 10 West projects near completion, tenants have a bevy of choices when surveying the market for high quality space. Landlords conversely feel confident that as the pandemic nears its conclusion that occupancy will return to near pre-pandemic levels and thus have either increased asking rates or at the very least, held their rates steady.
SQ. F
T.
Tenant demand has rebounded in Q1 of this year, driven by occupier optimism. New occupiers have begun to tour the market led by Life Science, Biotech, and Healthcare firms looking to expand into the Tri-Cities. In parallel, local business services firms and long standing entertainment occupiers are looking to solidify their footprint and engage newly revised real estate strategies.
Tri-Cities Office Market Overview Q1 2021 4
1
2
3
4
5
BUILDING NAME ADDRESS DELIVERY DATE RBA (SF) DEVELOPER LEASING STATUS
1 SFR 6265 San Fernando Road 6/1/21 100,000 Westbrook Partners CBRE Under Construction
2 10 West 100 W Walnut Ave 6/1/21 220,000 Morgan Stanley/Lincoln Property Group CBRE Under Construction
3 Avion 3001 N Hollywood Way 3/1/21 142,250 Overton Moore Properties CBRE Under Construction
4 Burbank Studios 3000 W Alameda 1/1/23 800,000 Worthe Real Estate Group Worthe Real Estate Group Under Construction
5 4561 Colorado Blvd North & South 4561 Colorado Blvd 12/1/21 188,661 Westbrook Partners CBRE Under Construction
FUTURE TRI-CITIES SUPPLY
Burbank Studios 3000 W ALAMEDA AVE.
10 West100 W WALNUT AVE.
Available
Partially leased
Fully leased
TBD
AVION BURBANK 3001 N HOLLYWOOD WAY
55%% Pre-Leased
1,450,911 SF Under Construction
0 SFCompleted Construction
SFR6265 SAN FERNANDO ROAD
SFR4561 NORTH & SOUTH BUILDINGS
4561 COLORADO BLVD.
Q1 2021 5
710 S. CENTRAL AVE, Glendale, CA26 27
Executive
SummarySummary of
Financial Assumptions
771100 SS.. CCeennttrraall AAvveennuuee11-Year Hold Period - OM Run
EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY
PPRROOPPEERRTTYY DDEESSCCRRIIPPTTIIOONN
Property Type Office Size of Improvements 36,437 SFProperty Owner Currently Vacant as of 10/1/21 9,334 SFProperty Address 710 S. Central Avenue Current Occupancy as of 10/1/21 74.38%
Los Angeles, CA Projected Occupancy as of 11/1/21 74.38%
AACCQQUUIISSIITTIIOONN AANNDD RREESSIIDDUUAALL SSUUMMMMAARRYY LLEEVVEERRAAGGEE SSUUMMMMAARRYY [1]
MARKET LOANPPuurrcchhaassee PPrriiccee aass ooff NNoovveemmbbeerr 11,, 22002211 $$441122 PPSSFF $$1155,,000000,,000000 Initial Loan Funding (as of Nov-21) $10,500,000
Loan-To-Value Ratio (Initial Funding) 70.00%
Year 3 Year 4 Year 5 Funding Date Nov-21Capitalization Rate 5.93% 6.17% 6.42% Maturity Date Oct-32Unleveraged Cash Return 5.87% 6.11% 6.36% Remaining Loan Term During Analysis 11.0 YearsLeveraged Cash Return 6.21% 7.01% 7.84% Amortization Period 30 YearsReturn on Cost 5.69% 5.92% 6.16% Initial Interest Only Period (If Any) -
Interest Rate 4.00%In-Place Capitalization Rate 3.27% 74.38% Occupancy Origination Fee on Total Loan Funding 0.00%Mark-to-Market Cap Rate 5.78% 95.00% Occupancy
Exit Fee on Balance at Maturity 0.00%3-Year 4-Year 5-Year Loan Constant 5.73%
Average Capitalization Rate 5.08% 5.35% 5.57% Initial Debt Yield 4.67%Average Cash Return 3.72% 4.32% 4.72% Debt Service Coverage Ratio (NOI) 0.82xAverage Leveraged Cash Return -0.98% 1.02% 2.38% Debt Service Coverage Ratio (CF) 0.15x
Gross Residual Value as of October 31, 2032 $629 PSF $22,919,000 Purchase Price as of November 1, 2021 $15,000,000Net Residual Value as of October 31, 2032 $610 PSF $22,232,000 Total Initial Loan Principal (10,500,000)
Net Residual Value Adjusted For Inflation $441 PSF $16,060,870 Total Initial Loan Fees 0Residual Capitalization Rate 5.50% Holdbacks and Escrows 0Residual Cost of Sale 3.00% Initial Equity $4,500,000
NOI Compound Annual Growth Rate (CAGR) 5.61%
AALLLL CCAASSHH IIRRRR 77..4499%% LLEEVVEERRAAGGEEDD IIRRRR 1111..8888%%AALLLL CCAASSHH EEQQUUIITTYY MMUULLTTIIPPLLEE 11..5588xx LLEEVVEERRAAGGEEDD EEQQUUIITTYY MMUULLTTIIPPLLEE 11..5500xx
[1] Leveraged analysis is based on financing that a particular investor may or may not be able to obtain.
CCaasshh FFllooww PPrroojjeeccttiioonnss BBaasseedd oonn AArrgguuss EEnntteerrpprriissee VVeerrssiioonn 1122..11..11
© 2021 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. This is an opinion of value or comparative market analysis and should not be considered an appraisal. In making any decisions that rely upon this analysis, it should be noted that we have not followed the guidelines for development of an appraisal or analysis contained in the Uniform
Standards of Professional Appraisal Practice of The Appraisal Foundation.
9/24/2021 9:43 AM 2CBRE Financial Consulting Group
771100 SS.. CCeennttrraall AAvveennuuee11-Year Hold Period - OM Run
SSUUMMMMAARRYY OOFF FFIINNAANNCCIIAALL AASSSSUUMMPPTTIIOONNSS
GGLLOOBBAALL VVAACCAANNTT SSPPAACCEE LLEEAASSIINNGG SSEECCOONNDD GGEENNEERRAATTIIOONN LLEEAASSIINNGG
1144,,666655 SSFF 2211,,777722 SSFF$$33..5500 FFSSGG MMEEDD $$33..5500 FFSSGG
AAnnaallyyssiiss PPeerriioodd OOccccuuppaannccyy aanndd AAbbssoorrppttiioonn RReetteennttiioonn RRaattiioo 75% 75%Commencement Date November 1, 2021 Projected Vacant at 11/1/21 9,334 SF
End Date October 31, 2032 Currently Vacant as of 10/1/21 9,334 SF FFiinnaanncciiaall TTeerrmmssTerm 11 Years Percentage Vacant at 10/1/21 25.62% 2021 Monthly Market Rent $3.50 PSF $3.50 PSF
Absorption Period 9 Month(s) Rent Adjustment 3.00% Annually 3.00% AnnuallyAArreeaa MMeeaassuurreess ((NNRRSSFF)) Absorption Period Start Date November 1, 2021 Lease Term 5 Years 5 Years
Rentable Square Feet 36,437 SF First Absorption Occurs On December 1, 2021 Expense Reimbursement Type FSG FSGLast Absorption Occurs On August 1, 2022
TTeennaannttiinngg CCoossttssGGrroowwtthh RRaatteess FFiinnaanncciiaall TTeerrmmss && TTeennaannttiinngg CCoossttss $$33..5500 FFSSGG MMEEDD $$33..5500 FFSSGG Free Rent
Consumer Price Index (CPI) 3.00% 2021 Monthly Market Rent $3.50 PSF $3.50 PSF New 5.0 Month(s) 5.0 Month(s)Other Income Growth Rate 3.00% Rent Adjustment 3.00% Annually 3.00% Annually Renewal 2.0 Month(s) 2.0 Month(s)Operating Expenses 3.00% Lease Term 5 Years 5 Years Weighted Average 2.75 Month(s) 2.75 Month(s)Real Estate Taxes 2.00% Expense Reimbursement Type FSG FSGMarket Rent Growth Rent Abatements 5.0 Month(s) 5.0 Month(s) Tenant Improvements ($/NRSF)
CY 2022 - 3.00% - $3.61 PSF Tenant Improvements ($/NRSF) $40.00 PSF $20.00 PSF New $40.00 PSF $20.00 PSFCY 2023 - 3.00% - $3.71 PSF Commissions 6.00% 6.00% Renewal $15.00 PSF $15.00 PSFCY 2024 - 3.00% - $3.82 PSF Weighted Average $21.25 PSF $16.25 PSFCY 2025 - 3.00% - $3.94 PSF EEXXPPEENNSSEESSCY 2026 - 3.00% - $4.06 PSF Leasing CommissionsCY 2027 - 3.00% - $4.18 PSF OOppeerraattiinngg EExxppeennssee SSoouurrccee CY 2021 Estimates [2] New 6.00% 6.00%CY 2028 - 3.00% - $4.30 PSF Renewal 3.00% 3.00%CY 2029 - 3.00% - $4.43 PSF MMaannaaggeemmeenntt FFeeee ((%% ooff EEGGRR)) 3.00% Weighted Average 3.75% 3.75%CY 2030 - 3.00% - $4.57 PSF
CY 2031+ - 3.00% - $4.70 PSF RReeaall EEssttaattee TTaaxxeess RReeaasssseesssseedd Yes [3] DowntimeMillage Rate 1.083575% New 6 Month(s) 6 Month(s)
GGeenneerraall VVaaccaannccyy LLoossss 5.00% [1] Special Assessments $95,595 Weighted Average 2 Month(s) 2 Month(s)
CCaappiittaall RReesseerrvveess ((CCYY 22002211 VVaalluuee)) $0.20 PSF
NNootteess::All market rates are stated on calendar-year basis.[1] General Vacancy Loss factor includes losses attributable to projected lease-up or rollover downtime.
The following tenants are excluded from this loss factor for the lease terms modeled: CCI, State of CA.[2] Provided by Ownership for CY 2021 estimated expenses. It is up to the potential investor to conduct their own due diligence and underwrite reasonable expenses for this type of asset.[3] Real Estate Taxes have been reassessed at the estimated purchase price based on a millage rate of 1.083575% plus special assessments of $95,595.
**The information contained throughout this analysis has been obtained from sources believed to be reliable. It is up to the particular investor to conduct their own due diligence and confirm the information presented.
9/24/2021 9:43 AM 3
This page is part of a package and is subject to the disclaimer on the Executive Summary.CBRE Financial Consulting Group
710 S. CENTRAL AVE, Glendale, CA28 29
Sale
Comps - 2021
ADDRESS 516 Burchett 750 Fairmont Avenue 350 W. Arden Avenue 320 E. Harvard Street
CITY Glendale Glendale Glendale Glendale
DATE May 18, 2021 March 29, 2021 March 3, 2021 Febraury 25, 2021
SALE PRICE $9,000,000 $5,210,000 $6,250,000 $4,500,000
$/SF $399.89 $311.09 $390.63 $513.58
BUILDING SF 22,506 16,763 16,000 8.762
LAND SF 44,431 31,585 16,553 10,454
PARKING 40 spaces 45 spaces 48 spaces 25 spaces
710 S. CENTRAL AVE, Glendale, CA32 33
3-Mile Summary
Synopsis
CITY LIGHTS
MIDDLE GROUND
PRINCIPAL URBAN CENTER
21.8% HOUSEHOLDS IN STUDY AREA
Lifestyles OF THIRTYSOMETHINGS
Young, mobile, diverse
IN METROS OF
2.5 + MILLION
PEOPLE.
We’re singles and married couples with and without children who own or rent single-family
homes, townhouses, or mid- or high-rise apartments. We live in densely populated, racially and
ethnically rich neighborhoods. We are passionate about social welfare and equal opportunity
for all. We earn good incomes from working hard in professional and service occupations. To
provide for a stable financial future and possible home ownership, we budget well, and will
commute longer distances to support our urban lifestyle. Price-savvy, we shop for bargains at
warehouse clubs, Walmart, or Target; we’ll also pay for favorite brands if we believe the quality
merits. High-speed Internet access is available at home for basic browsing and some shopping.
Texting is cumbersome; we’d rather call to chat since we’re not enamored with social media.
Business: ±13,147
Employees: ±110,337
Population: ±246,138
Median Age: 40.70
Bachelor’s Degree: 28.3%
Graduate Degree: 15.0%
Average HH Income: $98,113
Daytime Residents: ±133,942
White Collar Workers: ±79,665
710 S. CENTRAL AVE, Glendale, CA34
PERFECT INVESTOR OR OWNER-USER OPPORTUNITY
JOHNNY CHOILic. +1 213 613 3344
MATT AGUILARLic. 02112401
+1 213 613 [email protected]
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