27831 & 27841 LA PAZ ROAD | LAGUNA NIGUEL, CALIFORNIA...

SMALL BUILDINGS

FOR SALE27831 & 27841 LA PAZ ROAD | LAGUNA NIGUEL, CALIFORNIA

6,878 sfOffering Memorandum

NNN LEASED INVESTMENT

EXCLUSIVE AGENTS:

ANDREW ROBBENCA RE License #01372891

[email protected]

JOSH CUNNINGHAM CA RE License #01802660

[email protected]

PRESENTED BY:

$2,725,000 (5.5% CAP RATE)

Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of 27831 & 27841 La Paz Road, Laguna Niguel, CA 92677 (the ”Property”) by the ownership (the “Seller”).

The Property is being offered for sale in an “as-is, where-is” condition, and the Seller and the Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include confidential information and are being furnished solely for the purpose of review by prospective purchasers (“Purchasers”) of the interest described herein for which it shall be fully and solely responsible. Neither the enclosed materials, nor any information contained herein, are to be used for any other purpose, or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed information, should be registered with the Agent as a “Registered Potential Investor” or as a “Buyer’s Agent” for an identified “Registered Potential Investor”. The use of this Offering Memorandum, and the information provided herein, is subject to the terms, provisions and limitations of the Confidentiality Agreement furnished by the Agent prior to delivery of this Offering Memorandum.

The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by the Agent or the Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners, and directors, as to its accuracy or completeness. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Seller nor the Agent shall have any liability whatsoever for any other written or oral communication or information transmitted, or made available, or any action taken, or decision made by the recipient with respect to the Property.

DISCLAIMER

For Sale 27831 & 27841 LA PAZ ROAD, LAGUNA NIGUEL

The Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from the market for sale at any time and for any reason without notice, to reject any and all expressions of interest or offers regarding the Property, and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. The Agent is not authorized to make any representations or agreements on behalf of the Seller. The Seller shall have no legal commitment or obligation to any recipient reviewing the enclosed materials, performing additional investigation, and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions required under the contract for title to pass from the Seller to the buyer have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents will be held and treated in the strictest of confidence; and (b) the recipient shall not contact employees, contractors, sub-contractors or lien-holders of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or the Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of the Seller or the Agent or as otherwise provided in the Confidentiality Agreement executed and delivered by the recipient(s) to Agent.

27831 & 27841 LA PAZ ROADLAGUNA NIGUEL, CALIFORNIA

1. Executive Summary

2. Investment Overview

3. Property Overview

4. Area Overview

Josh CunninghamDirectorCA RE License #[email protected]

Andrew RobbenManaging DirectorCA RE License #[email protected]

Newmark Knight Frank4675 MacArthur Court, Suite 1600Newport Beach, CA 92660949.608.2000Corporate CA RE License #01355491

TABLE OF CONTENTS

EXCLUSIVE AGENTS

4

TRADE AREA EXPERIENCING STRONG POPULATION GROWTH• Very high barriers to entry – desirable suburban community

bordering Aliso Viejo, Laguna Hills, and Laguna Beach.

• Affluent trade area with average household incomes of $117,319, $124,661 and $119,785 within a 1, 2 and 3-mile radius.

• Tenants in close proximity include Whole Foods, Home Depot, Sprouts, CVS, In-N-Out Burger and Starbucks.

• High household incomes provides an ideal environment for flexible uses in BP zoning.

• Large supporting base of residential households, nearby schools, and community centers.

EXCELLENT NET LEASED OPPORTUNITY• Ease of management with long term NNN leases.

• Establised tenancy - both Tenants are long long term operators with options to stay.

• Staggered lease expirations - limit Landlord’s near term re-tenanting costs and rollover exposure in a given year.

• Below market rent - current lease rents at the property (SIMA $1.38/SF), are well below current market rates, providing an Investor with the opportunity to capture substantial future rental increases.

FLEXIBLE DISPOSITION• 2 parcels allow for flexibility in splitting at disposition.

ADDED VALUE FOR BUYERS• Business Park Association planned improvement in 2017/2018.

• Easy access and good signage aids in Tenant retention.

HIGH DAYTIME AND EVENING TRAFFIC• One major contributor to the area’s daytime traffic is the Federal

Services Building directly adjacent to the subject property with more than 1,000,000 square feet of space.

• The Property is ideally located at the intersection of La Paz Road (20,476 cars per day) and Shelley Road.

73 TOLL ROAD ALLOWS FOR EASY AND CONVENIENT ACCESS• Central location allows for different navigation options including

73 Toll Road, Aliso Creek Road, and La Paz Road, a major thoroughfare.

CONVENIENT SURFACE PARKING• Ample parking and easy ingress/egress.P


1. Executive Summary

PRIME SIGN VISIBILITY ON LA PAZ ROAD• Individual Tenants have fascia signage on the building with good

visibility from La Paz Road.

5

La Pa

z Rd

6

TENANT NAME BUILDING %

RENTABLESF

MONTHLYRENT/SF

(AS OF 1/1/18)

MONTHLYRENT

(AS OF 1/1/18)

ANNUAL RENT

ANNUALRENT/SF

LEASE STARTLEASE EXP.

DATE OF NEXTESCALATION

NEW MONTHLYBASE RENT

NEW MONTHLY RENT/SF

Surf Industry Manufacturing Association (SIMA)

42.16% 2,900 $1.42 $4,119.58 $49,434.96 $17.05 3/1/2014

2/28/2021

3/1/2019

3/1/2020

$4,243.17

$4,370.46

$1.46

$1.51

• One (1), Five (5) Year Option to Renew

National TKD Martial Arts 57.84% 3,978 $2.05 $8,154.90 $97,858.80 $24.60 10/1/2017

11/30/2022

10/1/2018

10/1/2019

$8,399.55

$8,651.56

$2.11

$2.17

• Two (2), Five (5) Year Options to Renew 10/1/2020 $8,911.08 $2.24

10/1/2021 $9,178.41 $2.31

10/1/2022 $9,453.76 $2.38

Totals: 6,878 $1.78 $12,274.48

LIST PRICE$2,725,000

OCCUPANCY100%

NOI (YEAR 1)$149,990** Starting July 1, 2018

TOTAL SF6,878

RENT INCREASESEvery March & October

CAP RATE (YEAR 1)5.45%

RENT ROLL


2. Investment Overview

7

National TKD Martial Arts

National TKD Martial Arts is a fully featured Martial Arts school that offers a professional and fun learning environment for both novices and experts alike. In business for over 16 years, they have offered Martial Arts training self-defense classes led by USA Taekwondo Champion Master Jimmy Graesser (over 35 years of Martial Arts experience), in a fun yet structured environment for children and adults.

Websitewww.nationaltkd.com

OwnershipPrivate

SIMA (Surf Industry Manufacturers Association)

Founded in 1989, SIMA represents the interests of America’s surf industry. SIMA members include manufacturers and distributors of surfboards, surf apparel (swimwear, sportswear, boardwear, etc.), wetsuits, bodyboards, eyewear, footwear, accessories and other products used by beach and board sports consumers as well as magazines, exhibit companies, video companies and surf industry vendors such as banks and insurance companies.

The Surf Industry Manufacturers Association (SIMA) is the trade association of competing surf industry product suppliers working together to support, unify and ensure the sustainability of the surf industry through:

• Support surfing and all other forms of wave riding, in regard to the sport, lifestyle and industry.

• Unify our surf industry and support through member brand growth, networking and education.

• Ensure the sustainability of our industry by supporting environmental and humanitarian organizations that are surf related.

Websitewww.sima.com

OwnershipPrivate – Non-Profit

8

Address:

APN #’s:

Year Built:

Building Area:

Business Park Land Acres:

# of Stories:

Building:

Exterior Walls:

Exterior Windows:

Roof:

HVAC:

Zoning:

Topography:

Interior Improvements:

27831 & 27841 La Paz RoadLaguna Niguel, CA 92677

27831 = 634-061-1127841 = 634-061-12

1979

6,878 SF

0.56

1

Concrete block and pre-cast concrete

Concrete and plaster

Glass in anodized aluminum frames

Flat

Roof mounted exterior units

BP (Business Park) - Includes professional office, research, wholesaling, light industrial, and certain retail uses (subject to use-permit approval)

The property sits on-grade with complete visibility from La Paz Road

Perimeter private offices, kitchenette, utility room, open area, restrooms, and rear access


3. Property Overview

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Laguna Niguel has its origins in the Rancho Niguel Mexican land grant, which was acquired in 1959 by the Laguna Niguel Corporation to develop one of California’s first master-planned communities. As a predominantly residential city, Laguna Niguel serves as a bedroom community for the job centers of Orange County. Laguna Niguel is an affluent city, with median household income 31% above the Orange County average and nearly double the U.S. average. It is known for its mild coastal climate, low crime rate and its numerous parks and public trails.

Laguna Niguel is located in the San Joaquin Hills in the southeastern corner of Orange County, close to the Pacific Ocean, and borders the cities of Aliso Viejo, Dana Point, Laguna Beach, Laguna Hills, Mission Viejo and San Juan Capistrano.

Over one-third of Laguna Niguel is designated as open space. This significant amount of open space is one of the key features defining the character and urban form of the City.


4. Area Overview

GLOBAL HEALTHCARE SERVICES

Garth HoganExecutive Managing DirectorGlobal Healthcare ServicesCA RE License #01045154 [email protected]

John ScruggsManaging DirectorGlobal Healthcare ServicesCA RE License #01796826 949.608.2102 [email protected]

www.ngkfglobalhealthcare.com

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Chet HolifieldFederal Building

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27831 & 27841LA PAZ ROAD

EXCLUSIVE AGENTS:

ANDREW ROBBENCA RE License #01372891

[email protected]

JOSH CUNNINGHAM CA RE License #01802660

[email protected]

PRESENTED BY:

27831 & 27841 LA PAZ ROAD | LAGUNA NIGUEL, CALIFORNIA...

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