south bay industrial portfolio · 2015. 2. 19. · cbre, inc. is exclusively offering for sale the...

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INCLUDES 6 HIGHLY FUNCTIONAL BUILDINGS IN TWO PROJECTS TOTALING 284,960 SFSTRATEGIC INFILL SOUTH BAY LOCATION WITH EXCELLENT ACCESS TO MAJOR FREEWAYS

COMPTON &TORRANCE, CA

SOUTH BAY INDUSTRIAL PORTFOLIO

A CBRE NATIONAL PARTNERS INDUSTRIAL INVESTMENT OPPORTUNITY

40591

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19306-19426 S. NORMANDIE

CENTRAL AVE.

LA BUSINESS CENTER

1 SOUTH BAY INDUSTRIAL PORTFOLIO

Executive Summary

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EXECUTIVE SUMMARY

The OfferingCBRE, Inc. is exclusively offering for sale the South Bay Industrial Portfolio consisting of six properties totaling 284,960 square feet located in Compton and Torrance, California. Combined the properties are 100% leased to 11 quality tenants with a diversified rollover schedule over the next 4 years. This Portfolio represents a rare opportunity to acquire infill industrial product in the South Bay, one of the most highly desired industrial markets in the country.

LA Business Center in Compton consists of five buildings totaling 250,008 SF. The buildings are 100% leased to 9 tenants including attractive tenants such as Puritan Bakery, EcoSmart, and JFC International to name a few. The park features well-maintained landscaping, fenced yards and ample parking.

19306-19426 S. Normandie in Torrance PO is a quality multi-tenant industrial building totaling 34,952 SF that is 100% leased to Toyota Motor Sales through October 2018 and Metropolitan Stevedore Company through November 2016.

Located in the South Bay submarket in Los Angeles County, the Portfolio offers investors an opportunity to acquire highly functional industrial real estate in an infill location approximately 12 miles from the Ports of Los Angeles and Long Beach. The fee simple interest of the property is being offered on an “as-is”, “where is” basis.

• Institutional quality, single and multi-tenant industrial properties • 100% leased industrial portfolio totaling 284,960 SF• Diversified tenant mix with varying lease expirations • Buildings are individually parceled allowing for user sales in the future which can

garner a higher price• Strategic infill South Bay location with Proximity to Ports of Los Angeles & Long Beach• Strong market dynamics with a 1.6% vacancy rate and 1.8 MSF of net absorption

in 2014• Below replacement cost

SOUTH BAY INDUSTRIAL PORTFOLIO HIGHLIGHTS

Property LA Business Center Normandie Total

Address 1330 W. Walnut Parkway 1360 W. Walnut Parkway

1505 & 1575 W. Walnut Parkway1700-1800 W. Walnut Parkway

1515 W. Walnut StreetCompton, CA

19306-19426 S. Normandie

Los Angeles County (Torrance PO)

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Square Footage 250,008 SF 34,952 SF 284,960 SF

Office % ±7% ± 24% -

Acres 12.86 Ac 1.88 Ac 14.74 Ac

# of Buildings 5 1 6

# of Tenants 9 2 11

Occupancy 100% 100% 100%

Min. Clear Height 20’ 20’ 20’

DH/GL Doors 60/5 0/4 60/9

Year Built 1979-1980 1975 1975-198019306-19426 S. NORMANDIE

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South Bay Industrial PortfolioTorrance & Compton, CA

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PROPERTY HIGHLIGHTSInstitutional Quality Buildings• 19306-19426 S. Normandie, Torrance PO

◦ Free standing building with potential for user sale exit◦ Attractive features including secured yard and ample parking◦ Part of a 250 acre master-planned Pacific Gateway Center park◦ Los Angeles County address with benefits of a prestigious Torrance Postal code

• Los Angeles Business Center, Compton◦ Great dock door ratio ◦ Five (5) free standing buildings with potential for user sale exit ◦ Part of a larger 400 acre master-planned business park known as the Los Angeles

Industrial Center◦ Flexible sized buildings offering expansion within the park ◦ Features skylights and cap sheet insulation◦ Attractive landscaping, fenced yards and ample parking

Below Replacement Cost◦ Increasing construction costs and land values coupled with a lack of available

land have created barriers to new development. This provides an opportunity to purchase the properties at a price below replacement cost.

Value-Add, User Sale Opportunity ◦ The buildings are individually parceled and may be sold separately or together

to a user in the future, which can garner a higher sales price.

TENANCY HIGHLIGHTS• 19306-19426 S. Normandie, Torrance PO

◦ The property is 100% leased to Toyota Motor Sales through October 2018 and Metropolitan Stevedore Company though November 2016.

◦ Toyota Motor Sales is the U.S. sales, distribution and marketing unit for Toyota, Lexus and Scion brands. Toyota Motor Sales reported a 6.2% increase in sales in 2014 compared to 2013.

◦ Metropolitan Stevedore Company doing business as Metro Ports, provides stevedoring and terminal services with multiple locations nationwide.

• Los Angeles Business Center, Compton◦ The buildings are 100% leased to 9 quality tenants including Puritan Bakery,

EcoSMart, and JFC International to name a few. ◦ Offers staggered lease expirations with 21% roll in year 1, 5% roll in year

2, 21% roll in year 3 and 23% roll in year 4. This provides stability coupled with the ability to enjoy the upside to rents as the market is expected to continue to enjoy healthy rent growth.

19306-19426 S. NORMANDIE LA BUSINESS CENTER


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LOCATION HIGHLIGHTSStrategic Locations with Excellent Freeway AccessThe properties are located in the South Bay cities of Torrance and Compton, CA in the South Bay submarket of Los Angeles county, a quality in-fill industrial market. The properties offer immediate access to key freeways. • 19306-19426 S. Normandie, Torrance PO

◦ Excellent location with great I-405 freeway access as well as proximity to other major freeways including the 110 Harbor Freeway (2 miles), the SR-91 Freeway (2.5 miles) and only 10 minutes away from the I210 and I105 freeways.

◦ The site is also only 15 miles away from the Ports of LA/ Long Beach and 10 miles from LAX Airport.

◦ Adjacent to the 27 acre Harbor Gateway retail center providing tenants with ample retail services including Wal-mart, Office Depot and Dollar Tree as well as a gym and an Extended Stay hotel.

• Los Angeles Business Center, Compton◦ High desired and accessible location central to multiple freeways including the

SR-91 located a block away, I-110 which is approximately 2 miles to the east and is only , I-710 and I-405 freeways.

◦ These buildings are also very close to the Ports of Los Angeles and Long Beach as well as the Los Angeles International Airport.

MARKET HIGHLIGHTSStrong Market Dynamics

◦ The South Bay market is one of the strongest industrial markets in the nation and is well positioned for future rent growth given the low overall vacancy rate of 1.6% as of the fourth quarter of 2014.

◦ During the fourth quarter of 2014, there was 420,108 of net absorption bringing the year to date total to 1.8 MSF.

◦ The South Bay is characterized by an abundance of institutional owners/developers who continue to seek high quality industrial product as scarcity of land and high construction costs increase barriers to entry.

◦ Within the South Bay market, Torrance and Compton are some of the strongest submarkets with very low vacancies rates of 2.4% and 1.7% respectively.


LA BUSINESS CENTER

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W Alondra BlvdCompton/Woodley Airport

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Long Beach Rd

W Alondra Blvd

W Albertoni St

Gardena Fwy

E Walnut StGardena Fwy E Artesia Blvd

W Manville St

E Victoria St E Victoria St

W Victoria StE Victoria St

W Greenleaf Blvd E Greenleaf Blvd

E Carson St E Carson St

E Del Amo Blvd E Del Amo Blvd

E 213th St

San Diego Fwy

Harbor Fwy

E University Dr

E 220th St

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El Camino CollegeCompton Center

Los A

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StubHub Center

Carson

NorthLongBech

Virginia Country Club

The Links AtVictoria Glolf Course

Los AngelesInternational Airport

Ports of Los Angelesand Long Beach

LOCAL MAP - LA Business Center, Compton, CA

LA BUSINESS CENTER


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LOCAL MAP - 19306-19426 S. Normandie, Torrance CA

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Wilton Pl

Gramercy Pl

Harborgate Way

S Normandie Ave

Figu

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Anelo Ave

Pacific Gateway Dr Magnellan Dr

Vermont Ave

Hamilton Ave

W Francisco St

Figueroa St

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Toyota Way

W 187th St

187th Pl

W Knox St

Francisco St

Knox St

Francisco St

Haas Ave

Walmart

Sky Zone

Del Amo BlvdW Del Amo Blvd

W Milton St

Berendo Ave

Catalina St

S ew Hampshire Ave

W 209th St

Torrance Blvd

S Royal Blvd

Doble Ave

S New Hampshire Ave

W 212th St

W 204th St

W 205th St

Harpers Way

Main St

Tech Way

South Ave

Arlington Ave

Cravens

AvePortola Ave

Sartori Ave

Higgins Ct

Manhattan Pl

S Harvard B lvd

W 213th St

W 209th St

Brighton AveW 211th St

W 212th St

S Delton Ave

S Denker Ave

Border Ave

W 204th St

W 209th St

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Los AngelesInternational Airport

Ports of Los Angelesand Long Beach


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PerrisReservoir

GalwayDowns

San Fernando

Van Nuys

ShermanOaks

HollywoodBeverly Hills

Bel Air

SantaMonica

South LosAngeles

Torrance

RanchoPalos Verdes

San Pedro

Port ofLos Angeles

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

SanClemente

LagunaNiguel

Dana Point

LagunaBeach

NewportBeach

Lake Forest

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MissionViejo

Murrieta

Santa Catalina

Burbank

Pasadena

Ontario

HuntingtonBeach

Irvine

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Port ofLong Beach

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LAXAirport

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INTERMODAL YARDS

BNSF

1. BNSF Commerce Eastern2. BNSF Sheila3. BNSF Hobart4. BNSF San Bernardino5. BNSF Watson / Wilmington6. BNSF La Mirada7. BNSF Pico Rivera

1. UP City of Industry2. UP Colton3. UP Dolores4. UP LATC5. UP Mira Loma6. UP Anaheim7. UP Montclair8. UP Yermo

UNION PACIFIC

LA BUSINESS CENTER


110

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AERIAL - LA Business Center, Compton, CA

91

W.WALNUT ST.

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1505-1575 W. WALNUT PARKWAY

1700-1800 W. WALNUT PARKWAY1515 W. WALNUT STREET

1360 W. WALNUT PARKWAY

1330 W. WALNUT PARKWAY

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AERIAL - 19306-19426 S. Normandie, Torrance CA

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NORMANDIE AVE.

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19306-19426 S. NORMANDIE AVENUE

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9

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KNOX

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136’

257’

NORMANDIE AVENUE

19306 S. NORMANDIE22,449 SF

19426 S. NORMANDIE12,503 SF

N

FENCE

FENCE

44’5”

OVERSIZED GRADE LEVEL DOOR

GRADE LEVEL DOOR

19306 - 19426 SOUTH NORMANDIE

34,952 SF

SITE PLAN - 19306-19426 S. Normandie, Torrance CA


Property Descriptions

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W. WALNUT STREETW. WALNUT STREET

CENT

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VENU

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NTRA

L AVE

NUE

1701 WW32,008 SF

1575 WW40,731 SF

1535 WW13,577 SF

1505 WW27,154 SF

NOT A PART1490 WWNOT A PART

1700 WW

NOT A PART1999 WW

NOT A PART1401 WW

1515 WW28,530 SF

1360 WW24,000 SF 1330 WW

20,000 SF

1755 WW16,004 SF

1700-1800 WW48,004

461’

208’465’

175’

120’108’

209’

180’

119’

240’

N 1700-1800 W. WALNUT PARKWAY

96,016 SF 1505-1575

W. WALNUT PARKWAY81,462 SF

1515 W. WALNUT STREET

28,530 SF

1360W. WALNUT PARKWAY

24,000 SF

DOUBLE DOCK HIGH DOORINTERIOR DOUBLE DOORDOCK HIGH DOOROVERSIZED GRADE LEVEL DOOR

1330W. WALNUT PARKWAY

20,000 SFWALNUT PARKWAY

WALNUT PARK DR.

SITE PLAN - LA Business Center, Compton, CA

Offering integrated real estate capital markets solutions from strategy to execution—delivered by a seamless national partnership

www.cbre.com/np

© 2014 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.

CAPITAL MARKETS EXPERTS

LOCAL MARKET EXPERTS

DEBT & STRUCTURED FINANCE

Andrew Briner, CCIMFirst Vice PresidentLic. 01821872+1 909 418 [email protected] Inland Empire Boulevard, Suite 100Ontario, CA 91764

Scott SchumacherFirst Vice PresidentLic. 01078450+1 310 363 [email protected] Rosecrans Avenue, Suite 100El Segundo, CA 90245

Darla LongoVice Chairman/Managing DirectorLic. 00639911+1 909 418 2105 [email protected] Inland Empire Blvd., Suite 100Ontario, CA 91764

Rebecca Perlmutter Finkel, CFAVice PresidentLic. 01838624+1 310 922 [email protected] California Street, 44th FloorSan Francisco, CA 94111

Barbara EmmonsVice ChairmanLic. 00969169+1 213 613 [email protected] South Hope St. 25th FloorLos Angeles, CA 90071

Michael KendallSenior Vice PresidentLic. 01895979+1 909 418 2034 [email protected] Inland Empire Blvd, Suite 100Ontario, CA 91764

Val AchtemeierExecutive Vice PresidentLic. 01868169+1 213 613 [email protected] South Hope St.Los Angeles, CA 90071

NORTHEASTMichael D. HinesRobert FaheyLizann McGowanBrian FiumaraJerome KranzelBrad Ruppel

SOUTHEASTChris RileyFrank FallonBrian BudnickJennifer Klingler

SOUTH CENTRALJack FrakerJosh McArtorJonathan BryanHeather McClain

WESTDarla LongoBarbara EmmonsRebecca PerlmutterMichael KendallAndrew BrinerGina Christen

DEBT & STRUCTUREDFINANCEVal AchtemeierBrett Green

NORTH CENTRALMike CaprileTed StaszakStephanie Park

DEBT & STRUCTUREDFINANCESteve RothSteve Kundert

John SchumacherExecutive Vice PresidentLic. 01868169 +1 310 363 [email protected] Rosecrans Avenue, Suite 100El Segundo, CA 90245

Bret QuinlanExecutive Vice PresidentLic. 01144338+1 310 363 [email protected] Rosecrans Avenue, Suite 100El Segundo, CA 90245

south bay industrial portfolio · 2015. 2. 19. · cbre, inc. is exclusively offering for sale the...

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