huntington beach, ca frontier portfolio · long beach airport huntington beach, ca huntington...
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THREE STRATEGIC LAST MILE SOUTHERN CALIFORNIA LOCATIONS TOTALING ±31.76 ACRES « MULTIPLE OPTIONS FOR LONG-TERM VALUE CREATION WITH LONG-TERM LAND LEASES, LAND BANKING AND FUTURE REDEVELOPMENT «
A CBRE NATIONAL PARTNERS INDUSTRIAL INVESTMENT OPP ORTUNIT Y
FRONTIER PORTFOLIOHUNTINGTON BEACH | LAKEWOOD | POMONA
POMONA, CA LAKEWOOD, CALONGBEACH AIRPORT
HUNTINGTON BEACH, CA
THE OFFERINGCBRE is pleased to announce an excellent investment opportunity to purchase the Frontier Portfolio consisting of three fully improved industrial sites in Huntington Beach, Lakewood and Pomona totaling ±31.76 acres in “last mile” Southern California locations. The properties are 100% leased to Frontier Communications through 2029 with over 10 years of lease term. These infill sites benefit from attractive income and locations that are poised for continued long-term appreciation.
PLEASE NOTE OFFERS WILL BE ACCEPTED AS A PORTFOLIO OR INDIVIDUALLY.
PORTFOLIO HIGHLIGHTS‣ Top industrial markets in the country!‣ 3 mission-critical locations for Frontier Communications to service Southern
California land lines, including 911, cable, and FiOS internet.‣ Attractive lease structure with over 10 years of lease term, an absolute net
lease structure, 3% annual increases, and Parent Company as lessee‣ Strategic infill locations for Frontier, e-commerce, last mile industrial users
and surface storage users‣ Attractive in-place yields coupled with appreciating land values in strategic,
densely populated locations‣ Multiple options for long-term value creation with long-term land leases, land
banking and future redevelopment
INVESTMENT THESISThis is an excellent opportunity to acquire three strategic Southern California industrial sites with 10-year absolute net leases and 3% annual increases. The infill locations offer the opportunity for strong long-term appreciation.
Address Acres7048-7070, 7242, 7292, 7352 Slater Ave., Huntington Beach, CA 10.59 AC3770 Industry Ave., Lakewood, CA 5.26 AC1400 E Phillips Blvd., Pomona, CA 15.90 ACTOTAL ± 31.76 AC
POMONA, CA LAKEWOOD, CA
E PHILLIPS BLVD
S RESERVOIR ST
INDUSTRY AVE
COVER ST
LONGBEACH AIRPORT
FRONTIER PORTFOLIO1
TENANCY HIGHLIGHTS100% Leased to Quality Captive Tenant• Frontier Communications, Inc., has occupied these sites for 35-58 years
(Huntington Beach: 1960, Lakewood: 1967 and Pomona: 1983).• The tenant is in the process of consolidating from eight sites totaling 73 acres
in the Southern California area to these three sites totaling 31.8 acres.• Frontier provides high-speed Internet, video, TV & phone services. From
these importanant locations, the tenant services Southern California land lines, including 911.
LONG-TERM FLEXIBILITY• Well located, paved sites are extremely hard to come by in infill Southern
California markets like these. As a result, tenant demand for these parking sites will continue with strong forecasted rental growth.
• The rectangular sites allow for efficient building layouts, if redeveloped in the future.
• Huntington Beach is also an attractive residential location with its proximity to Huntington Central Park and entitled land values north of $100 PLSF. The City of Huntington Beach has indicated an interest in allowing a zone change to for-sale residential of approximately 17-20 units/acre.
PROPERTY HIGHLIGHTSThree industrial sites situated on ±31.76 acres in highly sought after locations including Huntington Beach, Lakewood and Pomona, California.
Address City Market # of Bldgs Building SF Land Size (Acres) Coverage
7048-7070, 7242,7292, 7352 Slater Ave.
Huntington Beach Orange County 4 47,812 10.59 Acres 10.4%
3770 Industry Ave. Lakewood South Bay 3 16,398 5.26 Acres 7.2%
1400 E Phillips Blvd. Pomona San Gabriel Valley 2 49,795 15.90 Acres 7.2%
TOTAL - - 9 114,005 31.76 Acres 8.2%
MARKET HIGHLIGHTSThe Portfolio’s submarkets continue to experience positive net absorption which will drive vacancy rates lower and push rent growth. The markets are highly desired by both tenants and institutional investors and have experienced steadier market demand during downturns and stronger market appreciation.
Market Base Vacancy Rate YTD Net Absorption
Orange County 256.4 MSF 1.5% 271,634 SF
South Bay 222.6 MSF 0.4% 1,229,791 SF
San Gabriel Valley 152.4 MSF 1.2% 1,387,766 SF
EXECUTIVE SUMMARY 2
LOCATION HIGHLIGHTSHighly Sough-After Locations - These sites are mission-critical for Frontier to service Southern California land lines, including 911. The infill locations are also highly sought-after for other e-commerce, last mile industrial and truck storage users.
Huntington Beach• Strategically located within 2 miles of the I-405 and SR-22 freeways and within 10 miles of
John Wayne Airport, the Ports of LA and Long Beach, and SR-55 and SR-91 freeways.• Excellent last mile industrial location with 1.6 million people living within 10 miles of
the property.• Attractive residential location adjacent to Huntington Central Park.• Median household income for residents within 1 mile of the property is $71,005, 28%
higher than the United States estimated 2017 median household income.• Located in Opportunity Zone offering tax benefits to investors.
Lakewood• Excellent last mile distribution location with over 2.2 million people living within 10
miles of the property.• Strategically located adjacent to the Long Beach Airport, within 7-9 miles of the
Ports of LA and LB, 405/605/710 and 91 freeways and within 15 miles of the 110 freeway, as well as Los Angeles International Airport.
• Median household income for residents within 1 mile of the property is $81,017, 46% higher than the United States median household income.
Pomona• Strategically located between Los Angeles and the Inland Empire, the property is
approximately 9 miles from Ontario International Airport, and less than 50 miles from Los Angeles International Airport, Long Beach Airport, and Burbank Airport.
• Located in Los Angeles County allowing 2-3 truck turns per day with drayage.• Immediate access to I-60 with proximity to I-10 and SR-71.• Densely populated area with over 1.1 million people living within a 10-mile radius,
provides strong user demand, an attractive work force and executive housing.• Extremely limited opportunities for future competitive developments, given the
infill location.
POMONA, CA
LAKEWOOD, CA
LONGBEACH AIRPORT
HUNTINGTON BEACH, CAHUNTINGTON CENTRAL PARK
S RESERVOIR ST
FRONTIER PORTFOLIO3
REGIONAL MAP
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405
405
15
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1010
15
605
710
15
10
110
170
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PerrisReservoir
GalwayDowns
Port ofLos Angeles
Port ofLong Beach
San Fernando
Van Nuys
ShermanOaks
HollywoodBeverly Hills
Bel Air
SantaMonica
South LosAngeles
Torrance
RanchoPalos Verdes
San Pedro
Compton
LynwoodHawthorne
GardenaManhattanBeach
MontereyPark
El Monte
Montebello
Pico Rivera
Downey
Norwalk
Lakewood
Westminster
Cypress
Seal Beach
Orange
Corona
El Cerrito
La SierraNorco
EastvaleMira Loma University
Yorba Linda
AnaheimHills
ChinoChino Hills
Fullerton
Citrus
Covina
Pomona
ClaremontRancho
Cucamonga FontanaRialto San
BernardinoColton
LakeArrowhead
Redlands
Temecula
LakeElsinore
LagunaNiguel
LagunaBeach
NewportBeach
Lake Forest
FoothillRanch
MissionViejo
Murrieta
Burbank
Pasadena
Ontario
HuntingtonBeach
Irvine
Riverside
Anaheim
Santa Ana
Long Beach
MorenoValley
Perris
Walnut
Los AngelesOntario
InternationalAirport
BurbankAirport
John WayneAirport
LAXAirport
HUNTINGTON BEACH
LAKEWOOD
POMONA
EXECUTIVE SUMMARY 4
25 MILES
10 MILES
5 MILES
25 MILES
10 MILES
5 MILES
25 MILES
10 MILES
5 MILES
POPULATION RADIUS MAPS
HUNTINGTON BEACH, CA LAKEWOOD, CA
POMONA, CA
ALL 3 PROPERTIES OFFER EXCELLENT LAST MILE LOCATIONS, WITH IMMEDIATE ACCESS TO LARGE CONSUMER BASES, STRONG DEMOGRAPHICS AND EXTENSIVE TRANSPORTATION NETWORKS.
POPULATION 5-MILES 10-MILES 25-MILES
Huntington Beach 441,313 1,642,386 7,058,536
Lakewood 680,387 2,242,627 9,893,143
Pomona 454,589 1,064,466 6,303,393
FRONTIER PORTFOLIO5
© 2018 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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FRONTIER PORTFOLIOHUNTINGTON BEACH | LAKEWOOD | POMONA
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POMONA LAKEWOOD & HUNTINGTON BEACH