100% Leased, Class A Conejo Valley Corporate …...excellent access to the Golden State Freeway...
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100% Leased, Class A Conejo Valley Corporate Campus February 2019 2380 & 2400 Conejo Spectrum Street | Thousand Oaks, CA C onejo CORPORATE CAMPUS
Transcript of 100% Leased, Class A Conejo Valley Corporate …...excellent access to the Golden State Freeway...
100% Leased, Class A Conejo Valley Corporate Campus
February 2019
2380 & 2400 Conejo Spectrum Street | Thousand Oaks, CA
Conejo CORPORATE CAMPUS
The OfferingNewmark Knight Frank (NKF), as exclusive advisor, is pleased to present the exclusive opportunity to acquire the fee-simple interest in Conejo Corporate Campus (the Property), a 196,034-square-foot 100% leased, institutional corporate office project in the Conejo Spectrum of Thousand Oaks, California. The Property’s secured, in-place rent roll includes Sage Publications, Inc., (74% of the project—a leading privately held, leading international provider of innovative, high-quality content publishing, and Atara Biotherapeutics, Inc. (26% of the project), NASDAQ: ATRA, a T-cell immunotherapy biotechnology company with a $1.6 billion market cap. Sage has recently signed an amendment to expand within the project and Atara’s initial commencement begins in February.
The offering includes two, high-image, two-story office buildings which feature extensive floor-to-ceiling glass lines, stunning views, open floor plates and contemporary interior finishes. With recent capital upgrades/repairs in excess of $5.6 million, the investment opportunity is available at less than 50% of replacement cost providing a safe basis with below market in-place rents.
2380 & 2400 Conejo Spectrum Street | Thousand Oaks, CA
Conejo CORPORATE CAMPUS
196,034 RSFTOTAL GROSS BUILDING AREA
11.36 AcresTOTAL LAND AREA (TWO PARCELS)
TwoBUILDINGS
TwoFLOORS
2001YEAR BUILT
4.0/1000 RSFPARKING RATIO
TwoELEVATORS
300 KW, 480 V Diesel CaterpillarBACK-UP POWER
PROPERTY INFORMATION
THE CONEJO VALLEY Conejo Corporate Campus is located in the Conejo Valley office market, which consists of approximately 12.1 million square feet, with average asking rents of $2.48 per square foot, full service gross. The market experienced 337,497 square feet of new leasing activity in 2018, bringing the market vacancy rate to 12.9%. The vacancy in the Conejo Valley has decreased 440 basis points since 2014, which is a testament to the fundamental strength of the market. The Conejo Valley cities—including Thousand Oaks, Westlake Village, Agoura Hills and Calabasas —are widely acclaimed to be among the finest residential communities in Southern California. The Conejo Valley also contains one of the nation’s strongest labor pools with an extremely diverse, well-educated and wealthy population base.
Conejo Corporate Campus is located in Thousand Oaks, just off the Ventura Freeway (US 101) at Rancho Conejo Boulevard with excellent access to the Golden State Freeway (I-5), San Diego Freeway (I-405), Moorpark Freeway (SR 23) and Ronald Reagan Freeway (SR 118). The Ventura County municipality is 35 miles northwest of downtown Los Angeles. Thousand Oaks is known as a well-managed, master-planned city with safe neighborhoods and a highly regarded school system. Users in this market enjoy sweeping views of local mountains, hiking in the Conejo Canyons Open Space, and abundant nearby retail and food amenities. Conejo Corporate Campus is also close to a number of top public and private two- and four-year colleges and universities, including Lutheran University in Thousand Oaks, Pepperdine University in Malibu, University of California at Santa Barbara, and California State University campuses in Northridge and Channel Islands.
Investment HighlightsSIGNIFICANT IN-PLACE CASH FLOW WITH CAPTIVE TENANTSAvailable at an approximate 11% five-year average leveraged cash-on-cash return and a mid-teen, ten-year leveraged IRR, this 100%-leased, Class A asset offers a robust, in-place rent roll which includes a 6.75-year weighted average remaining lease term with captive tenants.
SECURED RENT ROLLThe secured rent roll includes Sage Publications, Inc., (74% of the project). Sage effectively uses the Property as their C-Suite with most of their key executives located at Conejo Corporate Campus—and they have recently signed an amendment to expand within the project by an additional 46,193 square feet. Atara Biotherapeutics, Inc. (26% of the project) has major license agreements with corporate neighbor Amgen, Inc. and also lease an adjacent 90,000-square-feet newly constructed building in Conejo Spectrum Business Park on a 15-year term. Both companies employ high-skilled professionals from the cities of Thousand Oaks, Westlake Village and Agoura Hills.
BUSINESS-FRIENDLY ENVIRONMENTThe Conejo Valley environment for office users is characterized by its affluent and well-educated labor pool, and proximity to abundant executive and workforce housing. The business environment has emerged as one of Southern California’s premier finance, technology, research, service and light manufacturing centers. Biotechnology, software, insurance and other service industries are the major driving forces in the area’s economy. Businesses love this location due to the competitive occupancy costs and favorable municipal tax advantages (no gross receipts tax) compared to the San Fernando Valley (city of Los Angeles).
ARTICULATED ARCHITECTURAL DESIGNA highly, articulated architectural design features concrete tilt-up construction and dramatic entry lobbies with high-end contemporary creative office finishes. Xircom (acquired by Intel), the original build-to-suit tenant, had invested over $140 per square foot in creative tenant improvements, including numerous meeting and conference rooms, and a continuous fiber data path.
FLEXIBLE FLOOR PLATESThe project’s flexible, ±49,000-square-foot floor plates are efficient, functional and offer a well-appointed open work environment for larger tenants. The floor plates can also efficiently accommodate tenants down to the 12,500-square-foot range, with completion of a demising plan to meet a variety of market demands for Conejo Valley office users. Each building is located on its own parcel, providing a flexible exit strategy to sell each building separately.
RECENT CAPITAL IMPROVEMENTS AND UPGRADESConejo Corporate Campus has been well maintained with recent capital improvements totaling more than $5.6M including a new 10-year roof coating, new boiler, implementation of new energy management software, new building exterior paint, new project signage, drought tolerant landscaping as well as lobby and demising improvements.
MAJOR DISCOUNT TO REPLACEMENT COSTAvailable at less than 50% of replacement cost, the Property’s existing rents are substantially below peak levels and are 50% below replacement cost rents in a submarket which has significant physical and economic barriers-to-entry. New development in the Conejo Valley is significantly limited due to legislation that sets aside over 34% of the region’s existing developable land for open space—severely limiting new development. All of the neighboring land in the Conejo Corporate Campus has been developed or entitled as high-end industrial product with end-user sale pricing achieving upwards of $335 psf and investor pricing of $200 psf.
FREE AND CLEAR OF EXISTING DEBTThe Property is being delivered free and clear of existing debt, allowing investors to capitalize on today’s historically low interest rate environment, providing attractive double-digit cash-on-cash returns.
Conejo CORPORATE CAMPUS
DESIRABLE LOCATIONThe desirable Conejo Valley “Path of Progress” location boasts a superb nucleus of corporate neighbors, an abundance of nearby retail amenities and easy access to the prime executive housing in the Conejo Valley neighborhoods of Dos Vientos, North Ranch, Lang Ranch, Lynn Ranch, Lake Sherwood, Hidden Valley and Santa Rosa Valley. The corporate neighbors of the Conejo Corporate Campus include Shire Pharmaceuticals, Atara Biotherapeutics, Anthem, Blue Cross of California, SAGE Publications, Sky Works, Amgen, Ceres, McKesson, AGFA, Frontier Communications, BMW Designworks, Bocom Pharmaceuticals, Time Warner and Sensata.
RAPID BIOTECH EXPANSIONThe Conejo Valley has experienced an explosion of new and expanding Biotechnology firms. Since 2000 the Biotech base has expanded from five firms to 35 with many of them concentrated within the Conejo Spectrum adjacent to Amgen’s Corporate Campus. Conejo Corporate Campus’ tenant, Atara Biotherapeutics is an example of this expansion and desire to be close to Amgen.
101VENTURA 101 FWY
MALIBU CREEK STATE PARK
WESTLAKE VILLAGE
THOUSAND OAKS
CONEJO SPECTRUM
THE OAKS RETAIL CENTER
AMGEN CAMPUS
Conejo CORPORATE CAMPUS
VENTU PARK RETAIL CENTER
SANTA MONICA
MOUNTAINS
101
VENTURA 101 FWY
PACIFIC OCEAN
Conejo CORPORATE CAMPUS
Conejo CORPORATE CAMPUS
LOCAL MARKET EXPERTSMICHAEL SLATERSenior Vice [email protected] RE Lic. #01050876
ANDRES [email protected]
INSTITUTIONAL INVESTMENT SALESKEVIN SHANNONCo-Head, U.S. Capital Markets 310.491.2005 [email protected] CA RE Lic. #00836549
KEN WHITEExecutive Managing [email protected] RE Lic. #01788506
SCOTT SCHUMACHERSenior Managing Director [email protected] CA RE Lic. #01078450
LAURA STUMMSenior Managing [email protected] RE Lic. #01914207
DEBT & STRUCTURED FINANCEDAVID MILESTONEVice [email protected] RE Lic. #01515842
BRETT GREENSenior Managing [email protected] RE Lic. #01892016
MICHAEL MATCHETTAssociate [email protected] RE Lic. #01960206
PRIVATE CAPITAL GROUP SALESSEAN FULPExecutive Managing [email protected] RE Lic. #01389064
RYAN PLUMMERManaging [email protected] RE Lic. #01765854
Corporate License #01355491
The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
February 2019
