Chula Vista, CA Southrail Business Park

Transcription

1 Chula Vista, C Southrail usiness Park PREMIER MULTI-TENNT INDUSTRIL PRK 81% LESED TO 2 QULITY TENNTS NORTH ISLND NVL IR STTION DOWNTOWN NVL SE N SN DIEGO Y CHUL VIST YFRONT DEVELOPMENT PLOMR ST. PLOMR TROLLEY CENTER RESTURNTS, RETIL SERVICES INDUSTRIL LVD. MRST CT. SOUTHRIL USINESS PRK JYKEN WY NIT ST CRE NTIONL PRTNERS INDUSTRIL INVESTMENT OPPORTUNITY

2 THE OFFERING CRE, Inc. is offering an excellent opportunity to purchase Southrail usiness Park, a high quality flex and industrial park located in Chula Vista, which is ten minutes south of Downtown San Diego and ten minutes from the border crossing to aja, Mexico. Southrail usiness Park includes 10 buildings totaling 128,394 square feet and is 81% leased to 2 quality tenants with a staggered rollover schedule. INVESTMENT THESIS Southrail usiness Park presents an excellent opportunity to acquire a high quality multitenant industrial park in an infill Southern California location that is 81% leased at below market rents and significantly below replacement cost. uilt between 1984 and 1987, the park is conveniently located approximately ½ mile from I-, and a block from the trolley station providing excellent access to Downtown San Diego and Tijuana, Mexico. In addition, the property provides quick access to the I-1, I-80 and I-90 freeways. s of Q2 2016, net absorption was positive in the San Diego Industrial market for the 16th consecutive quarter with vacancy down to.4%. The South ay market, which includes Chula Vista, has a 2.7% vacancy rate in this product type. 64, , 664, , Marsat Ct. and ddress 148, , 196 Jayken Way, Chula Vista, C SF 128,394 SF cres ±7.9 cres Office % 1% Number of uildings / # of Units 10 / 30 Year uilt Clear Height 1-18 DH / GL Loading 7 / 4 Occupancy 81% Year 1 NOI $927,461 1 Southrail usiness Park

3 PROPERTY HIGHLIGHTS Premier Multi-Tenant Industrial Park in Chula Vista This property has always experienced strong occupancy and rent growth due to the following features: o Freestanding buildings with secured yards offers more window lines and separate identities for tenants o Dock high and grade level loading o No mezzanine square feet o Street signage for each unit o Flexible unit sizes MRKET HIGHLIGHTS Strong Market Dynamics The South ay submarket of San Diego continues to tighten. In Q2 2016, the South ay had a 3.% vacancy rate. Low finish industrial product featured an even lower 2.7% vacancy rate. We continue to see strong demand for Chula Vista due to the desirable amenities and freeway access. In addition, the tight market conditions and higher rents in Miramar and National City have driven new users to this market. Significantly elow Replacement Cost Given the infill nature of this site, there are few alternatives for new development. We estimate land today would trade in the $2 PLSF range pushing the building values with TIs to approximately $22 PSF. Separately Parceled uildings Provide User Exit lternatives We believe that user pricing today would be in the $10 PSF range. This is expected to increase over time given the strong market dynamics and forecasted low interest rate environment. elow Market Rents The portfolio offers below market rents of approximately 7%, which provides investors with significant potential upside in net operating income as leases rollover. Stable Cash Flow Southrail usiness Park has averaged 93% occupancy over the past 2 years and is currently 81% leased to 2 tenants in a variety of suite sizes with staggered lease expirations, which provides steady cash flow. TENNCY HIGHLIGHTS The 2 tenants utilize the property for unique purposes demonstrating the versatility and flexibility of uses in Southrail usiness Park. o ay ridge rewery occupies almost,000 SF in 688 Marsat Ct., and is Chula Vista s first micro-brewery. o Other tenants include Pro Imaging, 1 Planet Recycling, Toleeto Fasteners International, ctivewear Garments, and City Electric Supply Company. executive summary 2

4 STRTEGIC LOCTION TO KEY ECONOMIC DRIVERS STRTEGIC LOCTION Southrail usiness Park is strategically located among four important regional economic drivers, all of which are experiencing growth that is expected to continue into future years. 1. MRINE TERMINLS ND NVY SHIPYRD The National City Marine Terminal, with a dockside rail facility, is the port of entry for one out of every 8 cars imported to the US. The Tenth ve. Terminal with a 300,000 sq. ft. refrigerated ondock storage space, 1,000,000 sq. ft. of warehouse space with state of the art loading systems, and rail service is a strategic west coast port. ( Naval Yard-San Diego is homeport to the Navy s Pacific Fleet, supports 4 Navy ships, and will gain additional ships as the Navy shifts forces to the Pacific area. (CNIC Navy ase San Diego). Shipbuilding and repair facilities led by General Dynamics NSCO and E Systems employ over 12,000 people and are expected to grow as the Navy adds ships. Southrail usiness Park is already witnessing increased demand from the harbor as demonstrated by the recent dept lease at $0.98/SF. 2. NORTHERN MEXICO POPULTION, LOR, ND INDUSTRIL CENTERS aja California which adjoins San Diego has a population of over 3,000,000, including 1,600,000 in Tijuana, and is home to more than 900 manufacturing facilities. The Tijuana industrial market has a total base inventory of 61.1M sq. ft. comprised of 46M sq. ft. of manufacturing space and 14.M sq. ft. of distribution product. Through the 2Q 2016, Tijuana posted an overall vacancy rate of 2.4% with 1.4M sq. ft. of positive net absorption. There are over 6 million northbound border crossings per year from Tijuana into San Diego. The San Diego Trolley transports labor from the border to Downtown San Diego and a station adjacent to the Southrail Industrial Park. Others use the San Diego us service which also has a central terminal adjacent to the Park, and those travelling by auto primarily use I- which has two exits close to the Park. 3. DENSE POPULTION ND JOS CENTER Chula Vista is the second largest city in San Diego County, and Southrail usiness Park is located in an area that has both one of the heaviest populated and densest job centers in the County. Within a 10-mile radius of the Southrail usiness Park and south to the U.S./Mexico border, there is a population of 861,428, and 323,40 employees work in 27,81 businesses. The strength of these factors is further evidenced by the recent renewal of the Reliable Fire Water lease at $0.97/SF. Downtown Marine Terminals/ Navy Shipyards Chula Vista ayfront Master Plan National City Demographics within a 10-Mile Radius of the Property Population 861,428 usinesses 27,81 Employees 323,40 Chula Vista Southrail usiness Park 4. CHUL VIST YFRONT MSTER PLN The City of Chula Vista has obtained entitlements for a 6 acre ayfront Master Plan that incorporates an existing marina and restaurants and is planned to include a convention center, hotels, and retail, office, and residential projects, and park space is is expected to break ground in Tijuana San Ysidro order Crossing 3 Southrail usiness Park

5 INDUSTRIL LVD. HIGHWY CCESS ERIL RODWY PLOMR ST. TROLLEY & US STTION SOUTHRIL USINESS PRK MRST CT. JYKEN WY NIT ST. MIN ST. executive summary 4

6 Hard Rock Rd LOCL MP San Diego ay National City lvd National City E 30th St 4 4 Sweetwater Rd onita Rd onita Otay Lakes Rd Corral Canyon Rd Silver Strand State each San Diego ay National Wildlife Refuge C St D St th ve E St Chula Vista roadway H St 2nd ve 80 Hilltop Dr E H St E J St Rancho Del Rey Paseo Ranchero E H St Canyon Dr Telegraph Canyon Rd Otay Lakes Rd Otay Ranch 12 Eastlake Pkwy Third ve L St E L St Moss St Naples St Oxford St E Naples St E Palomar St Olympic Pkwy Santa Venetia St irch Rd SOUTHRIL USINESS PRK Main St roadway Palomar St 4th ve Orange ve Quintard St E Rienstra St E Or ange ve Main St randywine ve 12 Imperial each 9th St Imperial each lvd NOLF Imperial each Halo St Coronado ve 19th St Leon ve Palm ve Hollister St eyer lvd Iris ve eyer Way rey Dr Piccard ve Del Sol lvd 90 eyer lvd 80 Dennery Rd Ocean View Hills Heritage Rd Otay Mesa Rd rown Field Municipal irport 90 Southrail usiness Park

7 Solana each REGIONL MP Del Mar 6 Poway Mira Mesa 79 La Jolla Pacific each El Cajon Lakeside lpine 8 Stallion Oaks Descanso Pin San Diego International irport 7 8 Port of San Diego Coronado San Diego ay SOUTHRIL USINESS PRK San Diego 94 National City 4 Chula Vista Cross order Xpress (CX) Otay County Open Space Preserve Dulzura arrett Junction 94 San Ysidro Port of Entry Otay Mesa Port of Entry Proposed order Crossing (Late 2019) executive summary 6

8 SITE PLN Southrail usiness Park has 11 separate legal parcels, which provide the potential for sales to users or a smaller investment sale exit strategy in the future to drive additional value. NOT PRT l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l ddress Suite Tenant SF Lease Exp. 196 Jayken Entire dept Process Services, Inc. 8,78 Sep Jayken Entire Toleeto Fasteners 10,494 Jun Jayken Entire 1 Planet Recycling 10,494 Jun Jayken aja Star 1,90 Mar-19 Juan Iniguez (Shoe Lovers) 1,90 Jan-19 C/D Pro Imaging Services 4,822 Mar Marsat Court United Environmental 4,02 Jul-19 1 Iglesia De Jesucristo 2,328 pr-19 Termcor, Inc. 2,48 ug-17 C/D Vacant 8,832 Vacant 648 Marsat Court Intricate Stoneworks 3,977 Jan-19 City Electric Supply Company 4,031 Oct Marsat Court Prime Tek Solutions 3,307NOT PRTFeb-18 Jesus Tapia 3,298 Jan Marsat Court NOT PRT Gerardo Cervantes 2,32 ug-18 Mellado Designs 2,27 pr-18 C Fernando Silva 2,0 pr-18 D Jose Valenzuela 2,0 Jun Marsat Court San Diego Pump 2,833 ug-19 Vacant 2,833 Vacant 680 Marsat Court / ctivewear Garments, Inc. 4,08 Mar Marsat Court / Vacant,667 Vacant 688 Marsat Court The ppliance Depot 3,822 ug-18 ay ridge rewery 4,804 May Marsat Court Vacant 3,668 Vacant Vacant 3,127 Vacant 693 Marsat Court Maria NOT Sandoval PRT 3,194 Feb-17 Yonathan aduel 3,634 Mar Marsat Court Johnny ailey,096 Dec-17 Reliable Fire Water 3,78 Jul-18 C/D 693 MRST CT. 689 MRST CT. 683 MRST CT. 67 MRST CT. MRST CT 66 MRST CT. C D 696 MRST CT. 688 MRST CT. 680 MRST CT. 664 MRST CT. LEGEND PRCEL LINES N NIT ST 196 JYKEN WY C/D 180 JYKEN WY 164 JYKEN WY 148 JYKEN WY -1 JYKEN WY 64 MRST CT. 648 MRST CT. LEGEND DOCK HIGH DOORS GRDE LEVEL DOORS LESE EXPIRTION LEGEND VCNT Southrail usiness Park

9 Chula Vista, C Southrail usiness Park CPITL MRKETS EXPERTS LOCL MRKET EXPERTS DRL LONGO Vice Chairman/Managing Director Lic darla.longo@cbre.com RR EMMONS Vice Chairman Lic barbara.emmons@cbre.com REECC PERLMUTTER, CF Vice President Lic rebecca.perlmutter@cbre.com MICHEL KENDLL Senior Vice President Lic michael.kendall@cbre.com LOUY LSDEK Executive Vice President Lic louay.alsadek@cbre.com ERIK PRKER Vice President Lic erik.parker@cbre.com PHILLIP LINTON First Vice President Lic phillip.linton@cbre.com DET & STRUCTURED FINNCE VL CHTEMEIER Executive Vice President Lic val.achtemeier@cbre.com SHRON WORTMNN Capital Markets Operations Director sharon.wortmann@cbre.com NTIONL PRTNERS WEST Darla Longo arbara Emmons rett Hartzell Rebecca Perlmutter Mike Kendall Gina Christen Taylor Odegard NORTHEST Michael D. Hines rian Fiumara rad Ruppel SOUTHEST Chris Riley Frank Fallon rian udnick Jennifer Klingler SOUTH CENTRL Jack Fraker Josh Mcrtor Jonathan ryan Heather McClain Ryan Thornton NORTH CENTRL Mike Caprile Ted Staszak Stephanie Park Kate Dougherty WEST Darla Longo arbara Emmons rett Hartzell Rebecca Perlmutter Mike Kendall Taylor Odegard Gina Christen DET & STRUCTURED FINNCE Val chtemeier Steve Roth Steve Kundert Sharon Wortmann Offering integrated real estate capital markets solutions from strategy to execution delivered by a seamless national partnership 2016 CRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CRE, Inc. does not doubt its accuracy, CRE, 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. ny 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. CRE and the CRE logo are service marks of CRE, Inc. and/or its affiliated or related companies in the United States and other countries. ll other marks displayed on this document are the property of their respective owners.