westlake - loopnet · 2020. 11. 3. · westlake center medical plaza is a compelling opportunity to...

WestlakeC E N T E R

m e d i c a l p l a z a

For The Ful l OM V i s i tw w w . We s t l a k e C e n t e r M e d i c a l P l a z a . c o m

WestlakeM E D I C A L C E N T E R

2

P RES E N T E D B Y

Loc al Leasing Expe r t

Invest ment Conta ct s

G A R Y C O H E N Cell 818.804.1227 Office [email protected] CA 00988655

J A M E S D E B U I S E RCell 805.368.4313Office [email protected] CA 01965942

C O R Y R I C H M O N DCell 805.501.0042Office [email protected] CA 01225466


LAKE SHERWOOD

WESTLAKE LAKE

WESTLAKE BLVD

HAMPSHIRE RD

THOUSAND

OAKS BLVD

SANTA ROSA VALLEY

WestlakeC E N T E R



THOUSAND OAKS

Marcus & Millichap, as exclusive advisor, is pleased to present the Westlake Center Medical Plaza (“The Property”), an institutional quality medical off ice building totaling 29,609 square feet, located at 3180 Willow Lane in Thousand Oaks, CA. Westlake Center Medical Plaza is a compelling opportunity to acquire a 100% occupied, completely renovated, medical off ice building in the extremely affluent community of Westlake Village with the additional ability to enhance returns through rolling in-place tenants to market rents upon lease expiration.

The Property, built in 1987 and completely renovated between 2018 and 2020, offers tenants contemporary interior finishes, ample and convenient surface parking, high corporate identity, and abundant retail amenities nearby. The Property is located adjacent to a transformational mixed-use development consisting of 260 residential units and 15,000 square feet of stores and restaurants. This opportunity is being offered at $17,500,000 for the fee simple interest in the building and land thereunder.

INVESTMENT SUMMARY

Price $17,500,000Price Per Square Foot $591NOI Year One $878,060

Cap Rate In-Place Year One 5.02%

Cap Rate Stabilized (Year 2) 6.53%

Cash Yield Year 1 10.64%

Leveraged IRR (10 Year) 5.56 Years

Weighted Average Lease Term Remaining 4.76 Years

The Offering

6WestlakeM E D I C A L C E N T E R


P r o p e r t yS u m m a r y

3180 Willow Lane Thousand Oaks, CA

29,609 SF

100%

81,280 SF (1.87 Acres)

130

4.55:1,000 SF

13

1987/2020

Address

Rentable Area

Occupancy

Site Area

Surface Parking Spaces

Parking Ratio

Tenants

Year Built/Renovated

Investment Rationale

• Fully renovated between 2018-2020, minimizing near term capital costs for new investor

• Stable rent roll with only one expiration in first 24 months• Recession resistant medical tenants• Synergistic mix of established medical tenants

• $2 Million renovation project places Westlake Medical Center as the most modern, attractive medical office among the competing properties

• Best access of any medical property in Westlake with immediate 101 Freeway access, proximity to a dense and affluent community, and just blocks away from the core of Thousand Oaks Boulevard retail corridor

• Situated next to the largest potential mixed use development project in the history of the Conejo Valley

• With over 260 residential units, 15,000 SF of retail space, and community gathering areas, the project has the potential to create a walkable urban community in the immediate area

• One of the wealthiest cities in the country, drawing a discerning tenant base and clientele with immense discretionary spending power

• Numerous executive housing options within a 15 minute drive

Ideal 1031 Exchange Property

Adjacent to Transformational Mixed-Use Project

Best in Class Medical Off ice Within Exceptionally Strong 97% Leased Submarket

P restigious Westlake Village Location

• Secure income with only 3.9% of the GLA expiring within the first 24 months

• Historically secure medical tenants rarely relocate• Staggered lease expirations and no single tenant occupying more

than 14.7% of the GLA minimizes roll over exposure

Stable, Diversif ied Cash Flow With Upside


The offering represents a rare opportunity to acquire a stabilized medical office building in the highly regarded Westlake Village neighborhood. No other high quality medical office building in the Westlake Village submarket has been marketed for sale in the last 15 years, with just one trading off market to an institutional buyer in 2019.

Willow Medical Plaza is a boutique class A medical office building featuring 4.55:1,000 parking, excellent window lines, attractive common area lobbies, above standard floor plates, and strong corporate identity. The Property has been recently renovated with new lobbies, corridors, restrooms, landscaping, exterior paint, and concrete exterior staircases and walkways.

Medical office buildings of this size and quality rarely come to market, especially in the highly sought-after Conejo Valley submarket, which boasts a medical office vacancy rate of only 5.6%.

The Property’s diversified and synergistic rent roll boasts a weighted average lease term remaining of 4.84 years. The anchor tenant, Dougherty Lasik, and has 10 years of lease term remaining, providing long term stability and minimal roll over risk.

Recent Multi Million Dollar RenovationOver $2 Million in recent renovations to the interior, exterior, mechanical systems, ADA compliant walkways, tenant suites, and landscaping system

I N V E S T M E N T H I G H L I G H T S


R a r e , B e s t - i n - C l a s s I n s t i t u t i o n a l Q u a l i t y

M e d i c a l O f f i c e B u i l d i n g

High Image Asset High pride of ownership asset in an affluent community with high barriers to entry

Proximity to Extremely Affluent CommunityHighly affluent neighborhoods of Lake Sherwood, North Ranch, Westlake Lake, Calabasas, and Malibu all within convenient driving distance

Best Access of Any Medical Office BuildingSituated along the 101 Freeway with almost immediate on/off ramp access and close proximity to core retail areas on Thousand Oaks Blvd and Westlake Blvd

Synergistic And Diverse Tenant Mix With Credit & TermA strong mix of large, regional credit tenants and local healthcare providers with an average lease term of over 5 years ensures long term cash flow stability


The property is situated directly adjacent to one of the most important development projects to the future of the Conejo Valley. The city of Thousand Oaks recently voted 3-1 for initial approval of the largest ever mixed use development project in the city, the IMT Kmart development. This project has the potential to bring a modern, urban, walkable community to Westlake Village that could become the catalyst for future progress in the mostly suburban community. Long established as an exceptional place for the affluent to raise a family or settle in class just outside the hustle of LA, the area has been traditionally resistant to the urbanization and density seen in other cities currently prospering from the explosion of tech employment. The the proximity to the core of the Thousand Oaks Blvd retail corridor and the high end retail amenities along Westlake Blvd, the IMT’s project has the potential to finally bridge the two areas while influencing an urban, walkable, community along Hampshire Road. These forces together could add a tremendous long term value to Westlake Medical Center’s micro location.


A d j a c e n t T o T r a n s f o r m a t i o n a l M i x e d - U s e D e v e l o p e m e n t P r o j e c t

Total Project SF514,000


WestlakeC E N T E R



Total Retail SFTotal Site Area Apartments Townhomes15,00012 Acres 224 36


A F F L U E N T D E M O G R A P H I C S

8,450

$143,491

41%

52.2

69%

177,976

$113,539

38%

44.6

52%

850,967

$84,566

26%

38.4

33%

10,039,100

$68,093

19%

36.7

32%

Population

Westlake Village

Ventura County

Los Angeles County

Conejo Valley

Percentage Earning +$150k

Median Household

Income

Average Age

Percentage With Bachelors Deg ree

Or Higher


P r e s t i g i o u sW e s t l a k e V i l l a g e

L o c a t i o n


Recognized as one of America’s most affluent suburban locations and finest

areas to live, work, and raise a family, Westlake Village is a highly sought after

community. A city only 5.4 square miles, Westlake Village is located in the

Conejo Valley and straddles Los Angeles and Ventura counties and sits along the

Ventura (101) Freeway, also known as the 101 Tech Corridor for the many tech

and biotech companies between the San Fernando Valley and Santa Barbara.

The 101 provides access to Santa Barbara and the Central Coast to the north

and Los Angeles to the south. A master-planned community with a 125-acre,

man-made lake with eight miles of shoreline with over 1,300 homes, Westlake

Village offers a balanced mix of residential, shopping centers, high-end and

luxurious accommodations as well as award-winning public and private schools,

including Oaks Christian School. With its high-end housing, excellent quality of

life, and countless recreation activities, the area has drawn corporate executives,

entrepreneurs, and celebrities.

100% rent collections throughout Covid-19 pandemic

Zero contractual lease expirations in the first 22 months of the hold period

Weighted Average Lease term remaining of over 5 years

91% of the GLA has received new TI package within the last 24 months

Many of the tenants have recently expanded within the property while investing heavily into their own suites

Aging local population base and desire for convenience has led to dramatic increase in demand for off-campus medical office

Location across the street from ProActive, an off-season training hub for numerous professional athletes and celebrities, rapidly expanding Natren Probiotic’s headquarters, and Ferrari Westlake, have created have created an intrinsic demand and prestige for the Property’s micro location


S t a b l e I n - P l a c e T e n a n c y W i t h U p s i d e P o t e n t i a l

The Property is currently 100% leased with 61% of the rental stream consisting of the 5 largest tenants who have a weighted average lease term remaining of 6.65 years. The property has extremely low roll over risk, with only one tenant currently leased on a month to month basis. No other tenant expires until July of 2022, and more than half of the property’s leaseable area has contractual leases extending beyond 2025. 85% of the GLA has lease renewal options, showing further tenant commitment to the property. A submarket direct vacancy rate of less then 3% projects continued rent roll stability and future rent growth.

Contractual Rent Steps and Mark-to-Market: Current in-place rent is a 9.2% discount to the Q2 market rent, which comprises the majority of the incremental NOI from contractual rent steps over the first 4 years of the hold. An additional $166,184 of incremental NOI from contractual rent increases and market to market upside.


Upside Income Potential

WestlakeC E N T E R



WestlakeC E N T E R


P RES E N T E D B Y

Loc al Leasing Expe r t

Invest ment Conta ct s

G A R Y C O H E N Vice President InvestmentsCell 818.804.1227 Office [email protected] CA 00988655

J A M E S D E B U I S E RVice President InvestmentsCell 805.368.4313Office [email protected] CA 01965942

C O R Y R I C H M O N DCell 805.501.0042Office [email protected] CA 01225466

For The Ful l OM V is i tw w w . We s t l a k e C e n t e r M e d i c a l P l a z a . c o m

The information contained herein is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus& Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This material has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject Property. The information contained herein is not a substitute for a thorough independent due diligence investigation. Marcus & Millichap,as a Real Estate Licensee is not qualified to discuss or advise on legal, accounting, or other matters outside of those permitted by state law. Marcus &Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject Property,the future projected financial performance of the Property, the size and square footage of the Property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon,or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject Property. The information contained herein has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. All references to Marcus & Millichap include its officers, partners, agents, sub-agents, and employees. Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)

C O N F I D E N T I A L I T Y A N D D I S C L O S U R E

WestlakeC E N T E R


westlake - loopnet · 2020. 11. 3. · westlake center medical plaza is a compelling opportunity to...

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