7353-7355 CANOGA AVENUE - LoopNet · 2019-12-26 · 7353 Canoga Avenue, consists of a two story...

G R O U P

BRANDON MICHAELS

7353-7355 CANOGA AVENUECANOGA PARK, CA 91304

Property Overview

Investment Highlights

Financials

Area Overview

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416830 Ventura Blvd. Suite 100, Encino, CA 91436www.marcusmillichap.com

G R O U P

BRANDON MICHAELS

INVESTMENT ADVISORS

BRANDON MICHAELSFirst Vice President InvestmentsDirector, National Retail GroupTel: (818) [email protected]: CA #01434685www.BrandonMichaelsGroup.com

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Marcus & Millichap has been selected to exclusively market for 7353 Canoga Avenue, a 6,823 square foot mixed-use building consisting of ground floor retail, second story office, and new warehouse space with twenty foot plus high ceilings and roll-up access doors. The subject property is located just South of Saticoy Street and just north of Sherman Way along Canoga Avenue, a main north/south thoroughfare through the San Fernando Valley. 7353 Canoga Avenue is located just 0.7 miles north of Warner Center, the centralized business district of the San Fernando Valley and one of Los Angeles’ largest urban developments. Significant growth is projected in the form of new commercial and residential development and significant job growth, which is anticipate to migrate north and have a significant positive impact on surrounding communities.

7353 Canoga Avenue, consists of a two story mixed-use building at the front of the property totaling 3,800 square feet. The ground floor is 900 square feet, and is occupied by Hertz Rent-A-Car. Hertz has a seven year lease. The second story can be delivered vacant at the close of escrow. It is 2,900 square feet of fully built out, highly improved office space. In the rear of the property is a 3,000 square foot warehouse with 20 plus foot high ceilings and roll-up access doors.

Ideally situated just north of Warner Center, 7353 Canoga Avenue benefits from strong daily traffic counts exceeding 40,000 vehicles per day, and a dense surrounding population. There are over 450,000 people within a 5 mile radius, and the median household income is over $73,000. Warner Center, known as the central business district of the San Fernando Valley, is one of Los Angeles’ largest urban developments, offering a sweeping complex of office parks, high-rise office towers, apartments, and shopping centers including Westfield Topanga and the Village at Westfield Topanga. The multi-billion dollar submarket is home to substantial development, including the $1.5 billion renovation the Westfield Promenade is undergoing which will include retail, Class A office, two hotels, 14,000 residential units, and an entertainment and sports center. Uptown at Warner Center is receiving a $3 billion capital infusion to complete a mixed-use development. Significant growth is projected in the immediate area, with 37 million square feet of business and residential buildings, 14 million square feet of non-residential building area, 200,000 residential units, and 80,000 new jobs.

7353-7355 CANOGA AVECANOGA PARK, CA 91304

A 6,823 square foot mixed-use property located just 0.7 miles north of Warner Center, the largest urban planned

development in Southern California with over 80,000 new jobs and $37 million SF of commercial and residential

development projected by 2037.

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Address 7353-7355 Canoga Avenue, Canoga Park, CA 91304

APN’s 2111-016-028

Number of Stories 2

Year Built 1951

Building SF 6,823 SF

Lot Size 11,072 SF

Zoning M1-1

Parking Spaces* Total Parking: 15

Parking Ratio Ratio of 2.20 per 1,000 SF

Price $2,375,000Current Cap Rate 1.70%

Pro Forma Cap Rate 7.82%

Price SF (Building) $348

Price SF (Land) $215

Current Occupancy 13%

PROPERTY INFORMATION

FINANCIAL INFORMATION

PROPERTY DESCRIPTION

CANOGA AVENUE

METRO

ORANG

E LINE

7355 CANOGA

CANOGA PARKHIGH SCHOOL

PROMENADE

LNR WARNER CENTER

WARNER CENTER TOWERSTRILLIUMTOWERS

*Hertz uses 2 parking spaces in the front of the property and all spaces between the front building and the rear warehouse. Second story offices use 1 parking space in the front of the property.

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INVESTMENT HIGHLIGHTS

EXCELLENT WARNER CENTER LOCATION◆ Located less than a mile north of Warner Center, one of Los Angeles’ largest urban development, along Canoga Avenue, a high trafficked main north/south thoroughfare through the San Fernando Valley

◆ Centralized San Fernando Valley location with excellent freeway access

◆ High daily traffic counts

◆ Over 80,000 new jobs, 37 million square feet of business and residential buildings, 14 million square feet of non-residential building area, 200,000 residential units projected in the immediate area

WARNER CENTER – MULTI-BILLION DOLLAR SUBMARKET◆ $1.5 billion renovation the Westfield Promenade - retail, Class A office, two hotels, 14,000 residential units, and an entertainment and sports center

◆ Uptown at Warner Center is receiving a $3 billion capital infusion to complete a mixed-use development

◆ Warner Center 2035 Specific Plan offers significant by-right development and will experience significant growth over the next decade

MIXED-USE BUILDING ALLOWING FOR A MULTITUDE OF POTENTIAL USES◆ 900 square feet of ground floor retail, 2,900 square feet of highly upgraded office, and 3,000 square feet of warehouse with high ceilings

◆ High end upgrades with open floor plans, views, and second story balconies

◆ All three uses have separate access points

◆ Excellent visibility and footage along Canoga Avenue, a major North/South thoroughfare through the San Fernando Valley

STRONG IMMEDIATE DEMOGRAPHICS◆ Average household income of over $80,000 within a one-mile radius

◆ Over 450,000 people within a five mile radius

◆ Strong local economy spread over a multitude of diverse sectors

IDEAL OWNER-USER OR INVESTMENT OPPORTUNITY◆ Flexibility in leases allow an Owner-User Buyer to occupy a portion or all of the building

◆ Owner-User can occupy a portion of the building and generate income from the remaining tenants

$68,807 1-mile radius average HH income

155,9993-mile radius households

451,6545-mile radius number of population

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SUMMARY OF TERMSINTEREST OFFERED:100% fee simple interest in 7353-7355 Canoga Avenue, a 6,823 SF office building located in Canoga Park, CA 91303.

TERMS OF THE SALE:Property is being offered on a free and clear basis.

PROPERTY TOURS:Prospective purchasers are encouraged to visit the site prior to submitting offers. All property tours must be coordinated through the listing broker.

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LOCATION7353-7355 Canoga Avenue,Canoga Park, CA 91303

SITEThe subject property is located on the South-West corner of Valerio Street and Canoga Avenue.

SQUARE FOOTAGESconsists of a two story mixed-use building at the front of the property totaling 3,800 square feet. The ground floor is 900 square feet, and is occupied by Hertz Rent-A-Car.

CROSS STREETSThe cross streets are Canoga Avenue (North/South) and Valerio Street (East/West), between Sherman Way and Saticoy Street.

PARKING*15 Parking Surface Spaces are available.

PARKING RATIO2.20 Parking Spaces per 1,000 SF

YEAR BUILTThe property was built in 1951, and renovated in 1990

ZONINGZoning is M1-1

PROPERTY DETAILS

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INCOME AND EXPENSECURRENT PRO FORMA

Scheduled Lease Income $71,783 $217,200Effective Gross Income $71,783 $217,200

Expenses: $31,393 $31,393Net Operating Income $40,389 $185,807

EXPENSES BREAKDOWN

PER YEAR PER SF

Taxes @1.25% $29,688 $4.35

Insurance $1,706 $0.25

Total Expenses: $31,393 $4.60/$0.38

PRICING

Price $2,375,000

Current Cap Rate 1.70%

Pro Forma CAP Rate 7.82%

Price SF (Building) $348

Price SF (Land) $215

Building SF 6,823

Land SF 11,072

FINANCIALS

TENANT SF SF % LEASE START LEASE EXP RENT RENT/SF OPTIONS PRO FORMA RENT

PRO FORMA RENT/SF

Hertz Rent A Car 900 13% 2/14/2008 6/30/2026 $5,981.89 $6.65 1 - 5 year @ 3% increases $6,300.00 $7.00

Second Story Office - Vacant 2,900 43% None $5,800.00 $2.00

Rear Warehouse - Vacant 3,000 44% $6,000.00 $2.00

Total 6,800 100% $18,100.00

RENT ROLL

PRICINGOPERATING DATA

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SALES COMPARABLES MAP

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SALES COMPARABLES

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7353-7355 Canoga

6130-6140 Variel

21317 Hart

8724 Remmet

20845 Sherman

7011-7014 Canoga

7129 Owensmouth

21723 Sherman

21730 Sherman

7020 Topanga Canyon

7525 Topanga Canyon

ADDRESS SALES PRICE PRICE/SF BUILDING SF LOT SF CLOSE OF ESCROW

1 6130-6140 Variel Ave, Woodland Hills, CA $4,733,333 $265 17,846 36,740 6/6/18

2 21317 Hart St, Canoga Park, CA 91303 $1,600,000 $281 5,698 9,583 7/12/18

3 8724 Remmet Ave, Canoga Park, CA 91304 $1,900,000 $271 7,022 20,800 1/31/18

4 20845 Sherman Way, Winnetka, CA 91306 $3,180,000 $489 6,509 26,580 10/2/18

5 7011-7014 Canoga Ave, Canoga Park, CA 91303 $1,100,000 $444 2,476 6,534 4/30/18

6 7129 Owensmouth Ave, Canoga Park, CA 91303 $625,000 $422 1,482 3,920 12/19/18

7 21723 Sherman Way, Canoga Park, CA 91303 $900,000 $240 3,750 7,022 8/31/18

8 21730 Sherman Way, Canoga Park, CA 91303 $2,100,000 $283 7,419 8,712 6/29/2018

9 7020 Topanga Canyon Blvd, Canoga Park, CA 91303 $1,700,000 $281 6,050 12,563 6/26/2018

10 7525 Topanga Canyon Blvd, Canoga Park, CA 91303 $1,300,000 $259 5,025 4,792 1/8/2019

Average $1,913,833 $324 6,328 13,725 -

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SALES COMPARABLES PRICE/SF

SALES COMPARABLES

Address 21317 Hart StCanoga Park, CA 91303

Sales Price $1,600,000Price/SF $281Building SF 5,698Lot SF 9,583Close of Escrow 7/12/18

Address 6130-6140 Variel AveWoodland Hills, CA


8724 REMMET AVE

20845 SHERMAN WAY 7011-7014 CANOGA AVE 7129 OWENSMOUTH AVE

Address 21723 Sherman WayCanoga Park, CA 91303

Sales Price $900,000Price/SF $240Building SF 3,750Lot SF 7,022Close of Escrow 8/31/18

Address 21730 Sherman WayCanoga Park, CA 91303

Sales Price $2,100,000Price/SF $283

Building SF 7,419

Lot SF 8,712Close of Escrow 6/29/18

Address7020 Topanga Canyon Blvd

Canoga Park, CA 91303


Address7525 Topanga Canyon Blvd

Canoga Park, CA 91303


Address 8724 Remmet AveCanoga Park, CA 91304


Address 20845 Sherman WayWinnetka, CA 91306


Address 7011-7014 Canoga AveCanoga Park, CA 91303


Address 7129 Owensmouth AveCanoga Park, CA 91303

Sales Price $625,000Price/SF $422Building SF 1,482Lot SF 3,920Close of Escrow 12/19/18

21730 SHERMAN WAY

21723 SHERMAN WAY

7020 TOPANGA CANYON BLVD 7525 TOPANGA CANYON BLVD

6130-6140 VARIEL AVE 21317 HART ST

SUBJECT PROPERTY

$286

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RENT COMPARABLES MAPRENT COMPARABLES

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7353-7355 Canoga

7631 Alabama

7327-7329 Canoga

7209-7219 Owensmouth

7257 Owensmouth

21300 Sherman

21355 Sherman

21708-21712 Sherman

7361 Topanga Canyon

7503-7507 Topanga Canyon

ADDRESS RENT/SF/YEAR

RENT/SF/MONTH LEASE TYPE AVAILABLE

SFBUILDING

SIZE

1 7631 Alabama Ave, Canoga Park $17.40 $1.45 MG 2,750 13,440

2 7327-7329 Canoga Ave, Canoga Park $18.00 $1.50 NNN 4,242 6,242

3 7209-7219 Owensmouth Ave, Canoga Park $21.48 $1.79 MG 1,400 4,634

4 7257 Owensmouth Ave, Canoga Park $24.00 $2.00 NNN 1,800 3,800

5 21300 Sherman Way, Canoga Park $30.00 $2.50 NNN 617 8,525

6 21355 Sherman Way, Canoga Park $42.00 $3.50 NNN 800 18,249

7 21708-21712 Sherman Way, Canoga Park $18.60 $1.55 MG 2,200 4,450

8 7361 Topanga Canyon Blvd, Canoga Park $19.80 $1.65 ELEC 2,500 5,000

9 7503-7507 Topanga Canyon Blvd, Canoga Park $24.00 $2.00 NNN 4,472 7,200

Average $23.92 $1.99 - 2,309 7,949

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Address 7631 Alabama Ave, Canoga ParkRent/SF $17.40Rent/SF/Month $1.45Lease Type MGAvailable SF 2,750Building Size 13,440

Address 7209-7219 Owensmouth AveCanoga Park

Rent/SF $21.48Rent/SF/Month $1.79Lease Type MGAvailable SF 1,400Building Size 4,634

Address 7327-7329 Canoga Ave, Canoga Park

Rent/SF $18.00Rent/SF/Month $1.50Lease Type NNNAvailable SF 4,242Building Size 6,242

Address 7257 Owensmouth AveCanoga Park


Address 21300 Sherman WayCanoga Park


Address 21355 Sherman WayCanoga Park

Rent/SF $42.00Rent/SF/Month $3.50Lease Type NNNAvailable SF 800Building Size 18,249

Address 21708-21712 Sherman WayCanoga Park


Address 7503-7507 Topanga Canyon Blvd, Canoga Park


Address 7361 Topanga Canyon BlvdCanoga Park

Rent/SF $19.80Rent/SF/Month $1.65Lease Type ELECAvailable SF 2,500Building Size 5,000

RENT COMPARABLES7631 ALABAMA AVE 7327-7329 CANOGA AVE

7209-7219 OWENSMOUTH AVE 7257 OWENSMOUTH AVE

21300 SHERMAN WAY 21355 SHERMAN WAY 21708-21712 SHERMAN WAY

7503-7507 TOPANGA CANYON BLVD7361 TOPANGA CANYON BLVD

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The town of Canoga Park was founded in the South West corner of the San Fernando Valley on March 30, 1912. It was an agricultural community producing wheat, sugar, beets and eventually citrus, walnuts, chickens and eggs. In 1931 the name was changed to Canoga Park. It continued to be a small community until Pierce College was founded in the late ’40s and the large aerospace firms (Rocketdyne, Litton Hughes Aircraft) arrive in the 1950s. In the 1960s the 101 Freeway connected the West Valley to the city making Canoga Park and West Hills suburbs of Los Angeles.

Today, Sherman Way in historic downtown Canoga Park is the “main street” of Canoga Park. This is a vibrant business, social and cultural mecca. There are antique shops, live entrainment, music clubs and restaurants. This street is also home to the Walk of Hearts® where bronze plaques are embedded in the sidewalk to recognize distinguished teachers.

Canoga Park and West Hills are further enhanced with two regional malls, the Westfield Topanga which includes over 200 fashion forward shops and boutiques, extensive dining options and cutting edge am entities including an expanded Nordstrom’s and Target and Neiman Marcus opening in 2008. The Fallbrook Center is a one million square foot open-air with such stores as Kohl’s, DSW, Mervyns and Burlington Coat Factory.

CANOGA PARK

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Warner Center is one of Los Angeles’ largest urban developments, offering a sweeping complex of office parks, high-rises, apartments, and shopping centers. It is home to approximately 20,000 residents and employs more than 50,000 people. Known as the central business district of the San Fernando Valley, the district combines a mix of office buildings, hotels, world class restaurants, shopping centers, and business parks.

Warner Center is poised to undergo profound changes as commercial development expands over the next two decades. With the advent of the Warner Center 2035 Plan, Warner Center is quickly becoming one of the fastest growing sub-markets in the country. The Warner Center 2035 Plan increases the floor area ratio of sites within the designated boundaries to 4.5:1 FAR with unlimited height restrictions. The plan is a development blueprint for Warner Center that emphasizes mixed-use and transit-oriented development, walkability, and sustainability. The Plan seeks to create an environmentally, socially, and economically sustainable center for the West Valley.

The Warner Center 2035 Plan will allow the addition of more than 37 million square feet of business and residential buildings to Warner Center by 2035. Within the immediate area, over 14 million square feet of nonresidential building area and 200,000 residential units are projected, along with the creation of over 80,000 new jobs.

The former Rocketdyne site located at Vanowen Street and Owensmouth Avenue is slated for a $3 billion, six million square foot development by United Technologies Corporation and Boston Global. The six million square feet project will include 3.95 million square feet of residential space and 1.1 million square feet of Class A office space. The project will also include 310,000 square feet of cultural and public space, 240,000 square feet of assisted living space, 200,000 square feet of high-end retail, and 155,000 square feet of hotel space.

56%Owner Occupied Housing within 5-m radius

68%Renter Occupied Housing within 5-m radius

451,654Households within a 5-m radius

$68,807Average HH income within 1-m radius

$54,124Median HH income within 1-m radius

209,002Daytime Population within 5-m radius

An exceptional destination for live, work, and play

WARNER CENTER

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Warner Center - The Premiere Business HubWarner Center's central location and excellent freeway access make the sub-market a desirable and burgeoning office hub. Due to its outstanding living accommodations, desirable lifestyle amenities, and convenient access to public transportation, Woodland Hills/Warner Center has become a leading commercial center as well as a desirable place to live for residents.

Warner Center employs a diverse range of sectors and is home to many high profile employers:

Warner Center Towers is a 1,937,959 square foot office campus comprised of six prestigious office towers strategically located in the heart of Warner Center. Warner Center Towers is one of Los Angeles' largest office campuses and offers a park-like setting with landscaped plazas, attractive fountains, high-end amenities, and breathtaking views.

The Trillium is among the most prestigious office campuses in Woodland Hills combining for 660,669 square feet of Class-A office space. The Trillium features an attractive stone and tinted glass exterior, accentuated by lavish interior finishes and on-site amenities.

Built in stages between 2001 and 2005, LNR Warner Center is comprised of four five-story buildings and one three-story building containing approximately 808,274 square feet in total. Tenants include Health Net, UMG Recordings and Viking River Cruises.

OFFICE TOWERS OF WARNER CENTER

THE TRILLIUM LNR WARNER CENTER WARNER CENTER TOWERSWARNER CENTER

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VENTURA BOULEVARDVentura Boulevard is one of the primary east–west thoroughfares in the San Fernando Valley. It was also U.S. Route 101 before the freeway (which it is parallel to for much of Ventura Boulevard's length) was built and it was also signed as Business U.S. Route 101.

Running 18 miles, Ventura Boulevard is the world's longest avenue of contiguous businesses. The Boulevard begins near Calabasas in Woodland Hills at an intersection with Valley Circle Boulevard, passes through Tarzana, Encino, Sherman Oaks, and finally in Studio City (where it intersects with Barham Boulevard) it becomes Cahuenga Boulevard, which then winds through Cahuenga Pass into Hollywood. It has always been the most concentrated location for mom and pop shops and small businesses in the Valley; nowadays it has pockets of housing, mini-malls, and shops, along with a wide assortment of businesses, schools, and other establishments. Homes south of Ventura are considered to be among the most expensive in Los Angeles County, ranging from $2 million to $50 million and home to numerous celebrities, executives, athletes, and entertainers alike.

WESTFIELD TOPANGA AND THE VILLAGE AT WESTFIELD TOPANGAWestfield Topanga and the brand new The Village at Westfield Topanga is one of Southern California’s largest shopping complexes. Westfield Topagna is the only center in the United States with a Neiman Marcus and flagship Nordstrom alongside Target, and is a power shopping paradise with a luxury lineup including Gucci, Tiffany & Co., Salvatore Ferragamo, Louis Vuitton, Cartier, Burberry, Jimmy Choo alongside Apple, Tesla, Tory Burch, Anthropologie, Free People, OMEGA, Splendid, Urban Outfitters and Lacoste. The Village showcases trendy local fashion and lifestyle brands, sensational restaurants offering al fresco patio dining, a full-service gym, spa and yoga studio, along with Costco, Crate & Barrel, a weekly farmer’s market and more, all under a canopy of native trees and vegetation. With a combined square footage of over 2.5 million, Westfield offers the retail consumer a laundry list of high-end retailers and restaurant choices. It has transformed into a central gathering place for shopping, dining, entertainment and leisure and provides local residents and visitors a destination experience unlike any other in the San Fernando Valley.

The Village showcases trendy local fashion and lifestyle brands, sensational restaurants offering al fresco patio dining, a full-service gym, spa and yoga studio, along with Costco, Crate & Barrel, a weekly farmer’s market and more, all under a canopy of native trees and vegetation.

SHOPPING AND RETAIL

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A 1.6 million square foot two-level indoor shopping center comprised of high-end retail and restaurants such as Ruth’s Chris Steak House, Apple, Cheesecake Factory, Gap, Nordstrom, Target, and many others.

A brand new central gathering place for shopping, dining, events, entertainment and leisure. The open-air destination offers al fresco patio dining, a full-service gym, spa and yoga studio, along with a weekly farmer’s market. There are also children’s play areas, bocce ball courts and outdoor lounges.

Fallbrook Shopping Center is a unique 1,120,000 square foot shopping center anchored by Ralphs, Walmart, The Home Depot, Burlington Coat Factory, Trader Joe's and Sprouts.

Woodland Hills Country Cub is a private equity golf club in the foothills of the Santa Monica Mountains. They offer an array of social activities such as musical events, Easter brunch, summer BBQ’s, etc.

A country club located in Tarzana providing an acclaimed golf course and tennis program, fitness facilities, dining opportunities, social events

A public airport which serves the norther Greater Los Angeles area

Canoga Park market trends indicate an increase of $25,750 (5%) in median home sales over the past year. The average price per square foot for this same period rose to $364, up from $334.

Due to the high single-family residential prices, and a continuing demand for housing in San Fernando Valley, there is strong demand for the development of higher density apartment buildings and condominiums. Most new apartment development is occurring from redevelopment of older, low-density projects. Historically, apartment demand has been strong, and has been influenced by high home prices and the central location of the Valley relative to employment centers. As a result, the San Fernando Valley area has become one of the most densely populated areas in Los Angeles County. Warner Center has a large concentration of high-end, resort style apartment communities. These luxury apartments cater to the large and growing workforce population in Warner Center and Woodland Hills.

$2,797 Median Rent Per Month

$364 Price per SF

$580,000 Median Sales Price

WESTFIELD TOPANGA

THE VILLAGE AT WESTFIELD TOPANGA

FALLBROOK SHOPPING CENTER

WOODLAND HILLS COUNTY CLUB

EL CABALLERO COUNTRY CLUB

BOB HOPE AIRPORT

HOUSING MARKET HOUSING MARKET

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BRANDON MICHAELSSenior Managing Director InvestmentsSenior Director, National Retail Group

Tel: (818) [email protected]

License: CA #01434685www.BrandonMichaelsGroup.com

INVESTMENT ADVISORS

G R O U P

BRANDON MICHAELS

7353-7355 CANOGA AVENUE - LoopNet · 2019-12-26 · 7353 Canoga Avenue, consists of a two story...

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