COLDWELL BANKER ARMSTRONG BUILDING · 100% leased: Coldwell Banker Residential Brokerage...

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COLDWELL BANKER ARMSTRONG BUILDING 6809-6845 BROCKTON AVENUE, RIVERSIDE, CA Matt Hardke Vice President License No. 01942622 +1 949 929 0558 [email protected] Vantis Capital Advisors 2 Park Plaza Suite 525 Irvine, CA 92614 www.vantiscap.com Exclusively Listed By: *PLEASE DO NOT DISTURB TENANTS - CONTACT AGENT TO ARRANGE TOUR

Transcript of COLDWELL BANKER ARMSTRONG BUILDING · 100% leased: Coldwell Banker Residential Brokerage...

Page 1: COLDWELL BANKER ARMSTRONG BUILDING · 100% leased: Coldwell Banker Residential Brokerage (previously Coldwell Banker Armstrong Properties/Armstrong Realty) occupies 81% of the GLA

COLDWELL BANKER ARMSTRONG BUILDING6809-6845 BROCKTON AVENUE, RIVERSIDE, CA

Matt HardkeVice PresidentLicense No. 01942622+1 949 929 [email protected]

Vantis Capital Advisors2 Park PlazaSuite 525Irvine, CA 92614www.vantiscap.com

Exclusively Listed By:

*PLEASE DO NOT DISTURB TENANTS - CONTACT AGENT TO ARRANGE TOUR

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www.vantiscap.com 6809-6845 Brockton Ave | Riverside, CA | page 2

I Investment Overview a. Property Highlights b. Investment Summary II Pricing a. Financial Analysis b. Rent Roll III Area Overview a. Map Overview b. Location Overview c. Demographics

TABLE OF CONTENTS

CONFIDENTIALITY & DISCLAIMER

The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the lease of this Property and is not to be used for any other purpose. This information should not, under any circumstances, be dis-closed to any third party without the written consent of Vantis Capital Advisors, or Owner, or used for any purpose whatso-ever other than to evaluate the possible lease of the Property. The Memorandum contains select information that pertains to the Property and the Owner, does not purport to be all-inclusive or contain all or part of the information which prospective investor may require to evaluate a lease of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable but has not been verified for accuracy, completeness, or fitness for any purpose. All in-formation is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions related to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. Vantis Capital Advisors and the Owner disclaim any, and all liability for representations or warranties expressed or implied, contained in or omitted from this Memorandum or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and

delivered Real Estate Lease Agreement between it and Owner.

The information contained herein is subject to change without notice, and the recipient of these materials shall not look to Owner or Vantis Capital Advisors nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Memorandum and are advised and encouraged to conduct their

own comprehensive review and analysis of the Property.

NON-ENDORSEMENT NOTICE

Vantis Capital Advisors(“VCA”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of VCA, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of VCA, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR VANTIS

CAPITAL ADVISORS AGENT FOR MORE DETAILS.

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www.vantiscap.com 6809-6845 Brockton Ave | Riverside, CA | page 3

INVESTMENT OVERVIEWProperty Highlights

• First Time On Market in Over 50 Years - Family Owned Since 1963

• Top Performing Location for Coldwell Banker Residential Brokerage (81% of GLA) with 56+ Year Operating History at Site - Other Tenants Have 10-20 Years

• Signalized Intersection with Prominent Monument and Building Signage for Exceptional Visibility

• 100% Occupied with Synergistic National and Long-Term Seasoned Tenants

ADDRESS: 6809-6845 BROCKTON AVENUERIVERSIDE, CA 92506

PRICE $2,075,000

TOTAL GLA 8,940 SQUARE FEET

LAND AREA ±.71 ACRES (31,047 SQUARE FEET)

PRICE/SF (BUILDING) $232.10

PRICE/SF (LOT) $66.83

CURRENT NOI $145,149

CURRENT CAP RATE 7.00%

YEAR BUILT 1962

APN 225-284-024-3, 225-284-025

*PLEASE DO NOT DISTURB TENANTS - CONTACT AGENT TO ARRANGE TOUR

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www.vantiscap.com 6809-6845 Brockton Ave | Riverside, CA | page 4

Vantis Capital Advisors is pleased to present the opportunity to purchase the fee simple interest The Sam Armstrong Building located at 6809-6845 Brockton Avenue in Riverside, California. This ±8,940 square foot three-tenant office building is situated on two parcels totaling ±31,047 square feet. The property is 100% leased: Coldwell Banker Residential Brokerage (previously Coldwell Banker Armstrong Properties/Armstrong Realty) occupies 81% of the GLA and the company has operated at the site since 1963. This office has been a top performing location for the brand within the I.E, O.C., L.A., and Desert region, receiving seven awards for 2018 for revenue, profitability, management, and agent retention. Armstrong Property Management and Armstrong Escrow each have a 10- and 20-year operating history, respectively, providing a synergistic tenant mix adding to the long-term stability of the investment.

This iconic building is well known within the Riverside community. It displays a combination of International Style and Googie style of modern architecture. It has been documented for its architectural design by the City of Riverside, who reports its eligibility for listing as a historic building in the California Register under Criterion Three. The eye-catching design, prominent monument and building signage, and established palm trees make it impossible to miss when driving or walking by.

The Sam Armstrong Building is ideally located at the signalized intersection of Brockton Avenue and Nelson Street in the heart of the Magnolia Center neighborhood of Riverside. The 5-mile trade area is supported by a population of nearly 305,000 with an average household income of $75,682 and 110,868 daytime employees.

INVESTMENT OVERVIEWInvestment Summary

*PLEASE DO NOT DISTURB TENANTS - CONTACT AGENT TO ARRANGE TOUR

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FINANCIAL ANALYSIS

GROSS POTENTIAL RENT $ 155,647

EXPENSE REIMBURSEMENTS $ 54,317

GROSS POTENTIAL INCOME $ 209,965

VACANCY FACTOR (5%) $ (10,498)

EFFECTIVE GROSS INCOME $ 199,466

TOTAL EXPENSES $ (54,317)

NET OPERATING INCOME (NOI) $ 145,149

OFFERING SUMMARY

PROPERTY ADDRESS 6809-6845 BROCKTON AVE

GLA 8,940 SF

LOT SIZE (ACRE / SQUARE FOOT) 31,047 SF

YEAR BUILT 1962

PURCHASE PRICE $2,075,000

CAP RATE (CURRENT) 7.00%

BUILDING PRICE PER SQUARE FOOT $232.10

LOT PRICE PER LOT SQUARE FOOT $66.83

PRICINGFinancial Analysis

ANNUALIZED EXPENSES

REAL ESTATE TAXES1 $ 23,609

INSURANCE2 $ 2,235 MISC. REPAIRS AND MAINTENANCE $ 2,200 WATER, ELECTRIC & SEWER $ 17,495

GAS $ 1,168

TRASH REMOVAL $ 2,906

LANDSCAPING & GROUNDKEEPING $ 3,420

SECURITY SYSTEM $ 1,284

TOTAL EXPENSES $ 54,317

EXPENSES AS % OF EGI $ 0.27

EXPENSES PER SQUARE FOOT $ 6.08

NOTES1. Real estate taxes have been adjusted foR Reassessment at the pRojected sales pRice using the tax Rate 1.11871%

and adding special assessments of $395.92 2. insuRance is estimated at $0.25 peR squaRe foot.

3. CAM, utilities, and other expenses estimated peR selleRs 2018 opeRating expenses.

*PLEASE DO NOT DISTURB TENANTS - CONTACT AGENT TO ARRANGE TOUR

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SUITE TENANT SIZE (SF)

PRO RATA

LEASE DATE

LEASE EXPIRATION

DATE

MONTHLY RENT

MONTHLY RENT / SF

ANNUAL RENT

ANNUAL RENT / SF EXPENSE INCREASES OPTIONS

A (5,740 SF in 6809 and 1,310

SF in 6845)

COLDWELL BANKER RESIDENTIAL BROKERAGE 7,220 80.76% 3/7/2017 3/31/2021 $10,865.60 $1.50 $130,387 $18.06 NNN 3% on

4/1/20202 x 2-yr @

FMV

B (6845) ARMSTRONG PROPERTY MANAGEMENT 552 6.17% TBD* TBD* $695.00 $1.26 $8,340 $15.11 NNN 3% annual 2 X 2-YR @

FMV*

C (6845) ARMSTRONG ESCROW 1,168 13.06% TDB* TBD* $1,410.00 $1.21 $16,920 $14.49 NNN 3% annual 2 x 2-yr @ FMV*

TOTAL / WTD. AVERAGE 8,940 100.00% $12,970.60 $1.45 $155,647 $17.41

FINANCIAL OVERVIEWRent Roll (March 2019)

*Seller owns Armstrong Escrow and will occupy unit C after close of escrow. New leases will be executed for both units B and C in escrow. Length of lease and specific terms to be negotiated with buyer. Please contact agent for more information

*PLEASE DO NOT DISTURB TENANTS - CONTACT AGENT TO ARRANGE TOUR

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AREA OVERVIEWMap

CENTRAL AVE - 36,000 VPD

91 FREEWAY - 165,000 VPD

ARLINGTON AVE - 27,000 VPD

*PLEASE DO NOT DISTURB TENANTS - CONTACT AGENT TO ARRANGE TOUR

MAG

NOLI

A AV

E - 1

9,71

6 VP

D

NELSON ST - 3,039 VPD

BRO

CKTO

N A

VE -

8,55

7 VP

D

NORTE DAMEHIGH SCHOOL

SHAMEL PARK

RIVERSIDE PLAZA

Riverside Plaza

BROCKTONARCADE

DEPARTMENT OF MOTOR VEHICLES

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www.vantiscap.com 6809-6845 Brockton Ave | Riverside, CA | page 8

Riverside is a city in Riverside County, California, United States, located in the Inland Empire metropolitan area. Riverside is the county seat of the eponymous county and named for its location beside the Santa Ana River. It is the most populous city in the Inland Empire and in Riverside County, and is located about 55 miles (89 km) east of downtown Los Angeles. It is also part of the Greater Los Angeles area. Riverside is the 59th most populous city in the United States and 12th most populous city in California. As of the 2010 Census, Riverside had a population of 303,871.

Riverside was founded in the early 1870s. It is the birthplace of the California citrus industry and home of the Mission Inn, the largest Mission Revival Style building in the United States. It is also home to the Riverside National Cemetery.

Riverside has a diversified economy with significant manufacturing and non-manufacturing sectors. The manufacturing sector is largely light-industry and generates a range of products including aircraft components, automotive parts, gas cylinders, electronic equipment, food products, and medical devices. Supporting the manufacturing sector are several industrial parks, including those in the Hunter Industrial Park, Sycamore Canyon Industrial Park and Airport Industrial Areas. Many of the industrial sites are rail-served, with Union Pacific and Burlington Northern Santa Fe main lines running through the city. As the county seat and largest city in the region, Riverside also houses many legal, accounting, brokerage, architectural, engineering, technology, and banking firms.

AREA OVERVIEWLocation Overview

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DEMOGRAPHICS 1 MILE 3 MILE 5 MILE

POPULATION:

2023 PROJECTION 28,177 132,818 322,694

2018 ESTIMATE 26,452 125,425 304,908

2010 CENSUS 23,482 115,773 282,457

DAYTIME EMPLOYEES 16,340 53,308 110,868

2018 POPULATION BY RACE:

WHITE 21,827 104,111 249,055

BLACK 1,946 8,720 20,883

AM. INDIAN & ALASKAN 603 3,041 7,150

ASIAN 916 4,577 16,289

HAWAIIAN & PACIFIC ISLAND 167 686 1,635

OTHER 993 4,289 9,897

HOUSEHOLDS:

2023 PROJECTION 9,379 40,993 95,032

2018 ESTIMATE 8,802 38,720 89,817

2010 CENSUS 7,762 35,640 83,017

GROWTH 2018 - 2023 6.56% 5.87% 5.81%

GROWTH 2010 - 2018 13.40% 8.64% 8.19%

2018 AVG HOUSEHOLD INCOME $63,512 $73,234 $75,682

2018 MED HOUSEHOLD INCOME $50,961 $58,215 $57,987

AREA OVERVIEWDemographics

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Vantis Capital Advisors is a full-service brokerage company that focuses on aligning ourselves with our clients to build long-term investment strategies. In addition to advisory services, Vantis Capital Advisors also assists their clients in the acquisition, disposition, and leasing of Commercial Real Estate. Our specialty ranges from retail, office and industrial properties to multifamily and mixed use.

With nearly 15 years of experience in the industry, Vantis Capital Advisors has a unique advantage in providing our clients with extensive experience combined with a culture of utilizing the latest technologies that are available in Commercial Real Estate. The combination of experience and the utilization of technologies gives us the ability to provide efficiency, transparency, and accountability for our clients in a real-time environment.

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

Matt HardkeVice PresidentLicense No. 01942622+1 949 942 [email protected]

Vantis Capital Advisors2 Park PlazaSuite 525Irvine, CA 92614www.vantiscap.com