S. MAIN STREET OFFERING MEMORANDUM

Transcription

1 OFFERING MEMORANDUM S. MAIN STREET CARSON, CALIFORNIA 00% NNN LEASED UNTIL SEPTEMBER 2026 PREMIER INDUSTRIAL BUILDING TOTALING 96,683 SF ON 9.7 ACRES STRATEGIC SOUTH BAY LOCATION NEAR THE PORTS WITH IMMEDIATE I-0 ACCESS AND PROXIMITY TO I-40 A CBRE NATIONAL PARTNERS INDUSTRIAL INVESTMENT OPPORTUNITY

2 THE OFFERING CBRE Inc. is exclusively offering for sale South Main Street, a Class A industrial building totaling 96,683 SF on 9.7 acres in the highly desirable South Bay submarket. This is a unique opportunity to acquire the remaining 46+ year leasehold interest of a 00% leased asset occupied by a quality tenant, Royal Truck Body, through September Constructed in 974 and refurbished in 999 and 207, this excellent warehouse/distribution facility has an extremely large private, concrete-paved yard with ample truck turning and employee parking. Approximately 9,28 SF of new office areas include 9-foot ceilings, central HVAC, a,290 SF breakroom and monitoring windows. This facility is on a favorable master ground lease from the Los Angeles County (Sanitation District No. 8) through September 30, South Bay, one of the most desired Southern California industrial markets, continues to gain velocity with.3 MSF of net absorption in 207. The Los Angeles industrial market continues to build upon a steady foundation. Demand, coupled with 0.02% vacancy on Class A product, has pushed rents upward and are expected to increase by approximately % in S. Main Street is on the market at $22.9M ($4.2 PLSF) which yields a Year cap rate of.0% and an all cash IRR of 7.3%. PROPERTY OVERVIEW Pricing Summary Asking Price $22,927,000 Price Per Land Sq Ft $4.2 PLSF Cap Rate.0% All Cash IRR 7.3% Ground Lease IRR* 7.27% Year NOI $,320,000 (Before General Vacancy Loss) * Assumes future owner holds asset through expiration of ground lease. Address S. Main Street, Carson, CA Square Footage 96,683 SF Acreage 9.7 Acres* Coverage Ratio 22.9% Occupancy 00% # of Buildings Year Built/Renovated 974 / 999 / 207 Clear Height 30 Dock High Doors 8 Grade Level Doors 3 * Acreage excludes Drill Sites INVESTMENT THESIS PROVIDES INVESTORS WITH A RARE OPPORTUNITY TO PURCHASE A CLASS A, NEWLY REFURBISHED BUILDING TOTALING 96,683 SF WITH AN EXPANSIVE TRUCK YARD IN SOUTHERN CALIFORNIA S PREMIER INFILL MARKET. THIS ASSET IS ONLY 8 MILES FROM THE PORTS OF LOS ANGELES AND LONG BEACH AND IS FULLY LEASED LONG TERM TO A WELL-ESTABLISHED TENANT.

3 PROPERTY HIGHLIGHTS S. Main Street is a Class A, manufacturing and distribution facility totaling 96,683 SF on a 9.7-acre parcel. Completely refurbished including earthquake upgrades in 207, the building includes 9,28 SF of new offices with spacious 9 ceilings, central HVAC, and a,290 SF breakroom. The warehouse space features LED light fixtures and vented skylights. The property offers tenants an unusually large, private concrete yard, ample truck turning and employee parking. The building also has 30 clear height, dock high (8), and grade level (3) loading doors. Cost Segregation analysis identified significant tax savings through depreciation of major improvements due to the new tax law and 00% depreciable nature of the leasehold. Favorable ground lease with County of Los Angeles with 46+ years remaining term. COST SEGREGATION SAVINGS SUMMARY OF BENEFITS Depreciation Tax Deduction Year $6,886,096 Additional Depreciation Years 2-39 $47,6 / year IMPROVEMENTS TOTAL ASSUMPTION Building Total (excludes Land $) $2,000,000 * This is an example based on a $2 million purchase price. TENANCY HIGHLIGHTS S. Main Street is 00% leased to Royal Truck Body ( Royal ) through September Founded in 97, Royal is the largest service body company in the Western U.S., manufacturing cutting-edge work truck bodies and accessories. Royal Truck Body has strategic partnerships with such household brands as Chevrolet, Ford, Ram, GMC and Isuzu. Royal Truck Body has branch facilities for sales, training, and chassis availability in Union City, CA; Roseville, CA; Mesa, AZ; Haslet, TX; and Dallas/Fort Worth International in Dallas, TX. This Carson asset is the corporate headquarters for Royal Truck Body. MARKET HIGHLIGHTS The South Bay is one of the strongest industrial markets in the nation and is well positioned for future rent growth given the extremely low overall vacancy rate of 0.6% in the fourth quarter of 207. During the fourth quarter of 207, there was 2. MSF of gross activity in South Bay, bringing the year-to-date total to 2.2 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 the barriers to entry. Continued upward pressure on Class A lease rates in the South Bay sub-market, with average Class A lease rates currently at $0.8 NNN PSF per month for buildings with 0% building/ land coverage (3.8% higher than the average Greater Los Angeles Class A lease rate of $.78 NNN PSF per month). Average lease rates for improved land in the sub-market are currently at $0.30 NNN PSF. 2

4 ONLY 0% OF THE SOUTH BAY INDUSTRIAL MARKET IS CLASS A FAR LESS THAN THE INLAND EMPIRE, AND LESS THAN CENTRAL LA AND ORANGE COUNTY. NEW, STATE-OF-THE-ART PRODUCT IN THIS INFILL SUBMARKET IS EXTREMELY RARE AND HIGHLY DESIRED. LOCATION HIGHLIGHTS Rare infill location equidistant from the Ports of Los Angeles and Long (both 8 miles away). This proximity to the ports allows for faster truck turns and lower drayage costs. Markets such as the South Bay near UPS or FedEx hubs are most likely to attract Last Mile users to service e-commerce customers. There are 23 UPS, FedEx and OnTrac shipping hubs within 2 miles of S. Main Street. With access to over 8.6 million people within 2 miles and 4.7 million within 0 miles, this site would make an ideal Last Mile location. Employees enjoy an array of amenities within a mile of the property, including Starbucks, Target, Albertsons, The Home Depot, Staples, and Planet Fitness. CLASS A INVENTORY DISTRIBUTION BY SUBMARKET 0% 3% 3% 6% 68% 3% 7% Central Los Angeles (Commerce/Vernon) San Gabriel Valley Mid-Counties South Bay San Fernando Valley Orange County Inland Empire 3

5 Panama Ave Broad Ave Broad St LOCAL MAP Anza Ave Vermont Ave McCoy Ave Dodge Ave 0 07 Southwood Riviera 0 Torrance Heights Civic S Waterman Way Del Amo Fashion Center WALTERIA Rolling Hills Estates l vd Crenshaw B Portuguese Bend Nature Preserve W Carriagedale Dr LOS Delthorne ANGELES TORRANCE Madrona Ave 4 W Sepulveda Blvd Pine Creek Ln Torrance Municipal Rolling Hills Figueroa St Maple Ave W Q St Country Hills Rolling Hills Rd W Carson St W Lomita Blvd Eudora Ave Van Tress Ave W Dolores St W Chandler St Southwood Sunray W 23th St Frigate Ave Hillside Del Amo Blvd Pueblo Torrance Blvd W Don St W R St W Cruces St Lomita Blvd S Main St Old Torrance N Wilmington Blvd Crenshaw Blvd Wilson Park Gulf Ave Pennsylvania Ave Palos Verdes Dr N MIRALESTE Palos Ronan Ave Honda R and D Southeast Torrance Dr E Verdes Carmel Dr E 238th St E 238th Pl Marbella Ave E 244th St LOMITA Narbonne Ave Neptune Ave Ravenna Ave Cabrillo Ave E Lomita Blvd Ravenna Ave W Sandison St E 237th St E Sepulveda Blvd Island Ave Island Ave Eshelman Ave S Western Ave W Q St 23 Western Ave 23 HARBOR HILLS Green Hills Memorial Park S Western Ave E Q St Normandie Ave Defense Fuel Supply Point San Pedro Torrance Blvd W Carson St W 223rd St E Sandison St Sepulveda Blvd W Pacific Coast Hwy E Pacific Coast Hwy Fries Ave Marine Ave E Bonds St S Avalon Blvd N Marine Ave Avalon Blvd E N St East St E 246th St Lakme Ave Banning Blvd E 248th St E Lincoln St E R St E Pacific St E Realty St E Deloras Dr Oceanside St N Banning Blvd Seagrove Ave Wilmington Ave Barnning Banning Park Normandie Ave W Capital Dr W 9th St N Gaffey St S Vermont Ave Vermont Ave 0 N Pacific Ave 0 WEST CARSON 0 BNSF - Port of Los Angeles San Pedro Main St E Lomita Blvd Los Angeles Harbor College N Wilmington Blvd E Carson St 47 South Bay Pavilion 40 CARSON AVALON VILLAGE Wilmington W Harry Bridges Blvd N Avalon Blvd E 223rd St Terminal Island Port of Los Angeles Wilmington Ave WATSON JUNCTION E Anaheim St BNSF-Port of Los Angeles Nosc Ia E Del Amo Blvd E Del Amo Blvd E Sepulveda Blvd Alameda St 47 THENARD 47 ELFTMAN DOLORES 40 CSX-UP-ICTF NOT A PART Port of Long Santa Fe Ave DEL AMO VISTA DEL MAR W Willow St Pacific Ave W Anaheim St W 7th St Downtown Long Port of Long Queen Mary Bixby Knolls Long Blvd Atlantic Ave E Spring St Long Blvd E 0th St E 6th St Atlantic Ave W 3rd St E Broadway LONG BEACH Orange Ave Orange Ave E San Antonio Dr California Heights E Wardlow Rd Alamitos Ave E Carson St Cherry Ave Temple Ave Signal Hill E 7th St Cherry Ave Rose E Ocea 4

6 REGIONAL MAP 8 San Fernando 2 Lake Arrowhead Van Nuys Sherman Oaks 70 Bel Air Hollywood Beverly Hills anta onica LAX Hawthorne South Los Angeles Manhattan Gardena 40 Torrance 0 20 Compton Long Rancho Palos Verdes Port of San Pedro Long Port of Los Angeles BNSF Burbank Burbank Pasadena Citrus Rancho 60 Covina Claremont Cucamonga Fontana Rialto San Bernardino 4 Monterey 7 Ontario El Monte Colton Ontario Park Pomona International Montebello Walnut 2 Chino 3 Chino Hills Pico Rivera Mira Loma University 7 70 Eastvale Riverside Downey Lynwood Norco La Sierra 2 Los Angeles SUBJECT PROPERTY INTERMODAL YARDS. BNSF Commerce Eastern 2. BNSF Sheila 3. BNSF Hobart 4. BNSF San Bernardino. BNSF Watson / Wilmington 6. BNSF La Mirada 7. BNSF Pico Rivera 3 Lakewood UNION PACIFIC. UP City of Industry 2. UP Colton 3. UP Dolores 4. UP LATC. UP Mira Loma 6. UP Anaheim 7. UP Montclair 8. UP Yermo Norwalk Cypress 40 Seal 6 39 Westminster Huntington Fullerton 6 9 Anaheim Newport 7 Yorba Linda Orange Santa Ana John Wayne Irvine Anaheim Hills Laguna 24 Lake Forest Laguna Niguel Foothill Ranch Mission Viejo Dana Point San Clemente Corona El Cerrito 2 20 Moreno Valley Perris 330 Redlands Perris Reservoir TRANSPORTATION & LOGISTICS KEY DISTANCES Lake s 74 Elsinore Long 0 miles Los Angeles International 2 miles John Wayne 30 miles Freeways I-0 79 mile Highway mile I-40 Murrieta 3 miles I-70 4 miles Ports Port of Los Angeles Temecula 8 miles Port of Long 8 miles Galwa BNSF Watson/Wilmington 2 miles Down UP Dolores 3 miles

7 STRATEGIC DISTRIBUTION LOCATION 20 San Fernando Hidden Springs Falling Springs Mt San Antonio Wrightwood Alray Cajon Junction 40 Burbank Glendale La Cañada Flintridge Pasadena Angeles National Forest -San Gabriel Mountains Mt Baldy Scotland 2 Crestline 20 Running Springs Topanga State Park Santa Monica Beverly Hills 0 Los Angeles 0 Covina West Covina City of Industry 0 Ontario Pomona Ontario International Chino San Bernardino Fontana Bloomington Redlands 0 LAX El Segundo Manhattan Inglewood 40 Torrance Rancho Palos Verdes Long Port of Long Port of Los Angeles Downey 9 Lakewood There are 38 UPS, FedEx, and OnTrac shipping hubs throughout the Greater Los Angeles/ Orange County and Inland Empire Area. 23 hubs are located within a 2-mile radius of S. Main Street. SUBJECT PROPERTY Huntington 22 Brea Fullerton Anaheim Newport Yorba Linda North Tustin Santa Ana John Wayne Irvine 40 Chino Hills State Park 24 Lake Forest Laguna Laguna Niguel Silverado Corona El Cerrito 9 Riverside Woodcrest Lake Mathews Estelle Mountain Reserve Mead Valley Moreno Valley March Air Reserve Base Perris Terra Cotta Canyon Lake Lake Elsinore Lakeland Village 2 Murrieta Menifee 2 Nuevo Temecula Dana Point 6

8 AERIAL DOLORES ST E. SEPULVEDA BLVD SUBJECT PROPERTY S. MAIN ST 7

9 AERIAL SUBJECT PROPERTY S. MAIN ST 8

10 SITE PLAN NOT A PART NOT A PART LEGEND DOCK HIGH DOORS GRADE LEVEL DOORS OFFICE SPACE SOUTH MAIN STREET PARKING CONCRETE TILT-UP MANUFACTURING FACILITY FORTRESS RESOURCES (ROYAL TRUCK BODY) ±96,683 SF EXP: 09/26 32.ʼ OFFICE SPACE 9,28 SF NOT A PART DRILL SITE #2 30.ʼ NOT A PART DRILL SITE # SHARED DRIVEWAY (INCLUDED) PARKING A.T. & S.F. RAILWAY 9

11 CAPITAL MARKETS EXPERTS S. MAIN STREET CARSON, CALIFORNIA LOCAL MARKET EXPERTS DEBT & FINANCE DARLA LONGO Vice Chairman/Managing Director Lic darla.longo@cbre.com BARBARA PERRIER Vice Chairman Lic barbara.perrier@cbre.com REBECCA PERLMUTTER Senior Vice President Lic rebecca.perlmutter@cbre.com TRES REID Executive Vice President Lic tres.reid@cbre.com VAL ACHTEMEIER Executive Vice President val.achtemeier@cbre.com BRETT HARTZELL Executive Vice President brett.hartzell@cbre.com ERIC COX Senior Associate Lic eric.a.cox@cbre.com GREG DYER Senior Vice President Lic greg.dyer@cbre.com NATIONAL PARTNERS WEST DARLA LONGO BARBARA PERRIER BRETT HARTZELL REBECCA PERLMUTTER FINKEL ERIC COX GINA CHRISTEN GLOBAL INDUSTRIAL & LOGISTICS Jack Fraker NORTHEAST Michael D. Hines Brian Fiumara Brad Ruppel Lauren Dawicki SOUTHEAST Chris Riley Frank Fallon Trey Barry Jennifer Klingler SOUTH CENTRAL Randy Baird Jonathan Bryan Ryan Thornton Heather McClain NORTH CENTRAL Mike Caprile Ryan Bain Zach Graham WEST Darla Longo Barbara Perrier Rebecca Perlmutter Finkel Brett Hartzell Eric Cox Gina Christen DEBT & STRUCTURED FINANCE Val Achtemeier Scott Lewis Steve Roth Steve Kundert Offering integrated real estate capital markets solutions from strategy to execution delivered by a seamless national partnership 208 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.