DISTRIBUTION WAREHOUSE CHINO, CA - Available … · Chino, California is an opportunity to acquire...
Transcript of DISTRIBUTION WAREHOUSE CHINO, CA - Available … · Chino, California is an opportunity to acquire...
Exclusively Offered By:
Chase MacLeodVice PresidentP [email protected] # 01899515
Shy AssarAssociateP [email protected] # 01964667
DISTRIBUTION WAREHOUSE
OFFERING MEMORANDUM14040 - 14042 CENTRAL AVENUE, CHINO, CA
FOR SALE | ±52,991 SF OWNER / USER LEASED INVESTMENT OPPORTUNITY
CHINO, CA
Voit Real Estate Services | Chase MacLeod | [email protected] | 909.545.8090 Page 2
The Offering
The property located at 14040 –14042 Central Avenue in Chino, California is an opportunity to acquire a highly functional distribution warehouse in the heart of the western most portion of the Inland Empire. The property (±52,991 SF) offers a rare opportunity for an owner / user to occupy a building with long term in place rental income, or an investor the opportunity to purchase a property located in a highly sought after infill market with vacancy and significant upside.
Asking Price: $7,495,000 | $141.43 PSF
Project & Site Highlights• Two-Unit, Fully Demised Building (Separate Addresses)
• ±25,555 SF Leased to Quality Tenant Through December 2024
• ±27,436 SF Available Vacant or After Short Term Leaseback or Three (3) Year Leaseback with Seller
• NOI (with Seller Leaseback)*$369,000 (FYE June 30, 2017) Assumes Closing Date by June 30, 2016.
• Four (4) Dock High Doors
• 22' Minimum Clearance
• 0.45 GPM / 3,000 Sprinkler Calculations
• Three (3) Ground Level Doors
• SBA Owner / User Financing Possible (verify)
Chino Hills Pkwy
Butterfield Ranch Rd
Grove AveGrove Ave
Vineyard AveVineyard Ave
Garey AveGarey Ave
Reservoir StReservoir St
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ChinoAirportChinoAirport
Distance to —
Freeway – 2.2 miles
Freeway – 1.9 miles
Freeway – 8.6 miles
Freeway – 6.02 miles
Freeway– 8 miles
14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Execut ive Summary
Shy Assar | [email protected] | 909.545.8091
Tenant and Lease OverviewSokol Diamond Elite Gymnastics recently extended their lease for ten (10) years in the 14040 Central Avenue unit commencing January 1, 2015 at an initial monthly industrial gross rent of $16,355 per month, which is subject to an annual increase of three percent (3.0%) every year on January 1.
Tenant Lease Summary
Unit Address 14040 Central Avenue, Chino
Square Footage 25,555 SF
Lease Commencement January 1, 2015
Lease Term (Expiration Dec. 2024) 10 Years
Current Monthly Base Rent(January - December 2016)
$16,846 Per Month
Annual Escalations 3.0%
Lease Form AIR Multi-Tenant Gross
Annual Operating Expenses - Entire Bldg.(CAM, Insurance, Association Fees)
$39,700
Est. Annual Property Taxes - Entire Bldg.(Post Sale)
$82,445
Comments: Tenant’s lease does not allow for increases to property taxes from transfer of ownership or property sale to be passed through to the tenant.
Seller Potential Leaseback Summary
Seller is prepared to either deliver the 14042 Central Avenue unit vacant or agree to a short term leaseback prior to closing.
Potential Seller Leaseback
Commencement of Term Upon Closing
Lease Term Thirty-Six (36) months
Lease Type Industrial Gross
Renewal Option None
Rental Rate $23,897/Mo. Industrial Gross
Annual Escalations 3.0%
Sale Leaseback Cash Flow
Annual Gross Income (est.) $492,195.00
NOI (with leaseback)* $369,000.00 (FYE June 30, 2017)
*Comments: Assumes Closing Date of June 30, 2016 and leaseback commencement of July 1, 2016.
14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Tenant and Lease Overview
Voit Real Estate Services | Chase MacLeod | [email protected] | 909.545.8090 Page 3 Shy Assar | [email protected] | 909.545.8091
Site Plan
CENTRAL AVE
±27,016 SFCan be delivered vacant
after short term leaseback to Seller,
or three (3) year leaseback to Seller
±25,975 SFLong term leasein place through December 2024
4 DockDoors
14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Property Overview
GLGL GL
Voit Real Estate Services | Chase MacLeod | [email protected] | 909.545.8090 Page 4 Shy Assar | [email protected] | 909.545.8091
Building Specifications
Site Specifications
APN: 1021-021-24
Zoning M-2
Lot Size ±2.96 AC (128,937 SF)
Lot Dimensions 435' x 300'
Building Floor-to-Area Ratio 0.411
Rail Line / Rail Spots / Rail Doors None
Secured Truck Court / Yard (Y/N) No
Truck Court Depth & Length 60' Concrete Apron
Drive Around Capable Yes
Concrete Apron Dimensions 60' Concrete Apron
Truck Court Slope TBD
Trailer Parking Stalls None
Auto Parking Spaces 109 (2.06/1,000)
Physical Asset Specification
Building Type Industrial Distribution and Manufacturing
Year Built 1990
Construction Type Concrete Tilt-Up
Roof Construction (original / replacement date) Original (Regular Maintenance)
Building Dimensions (W' x L') 321' x 173'
Building Square Footage ±52,991 SF
Office Square Footage (%) ±5,100 SF (Split Between Units)
Mezzanine Square Footage None
Building Footprint 52,991 SF
Minimum Clear Height 22'
Maximum Clear Height 23'6”
Column Spacing (Speed Bay Depth) 40' x 40'
Loading Dock High Doors (H' x W') 4 (9' x 10')
Dock Package (Bumpers, Shelters, Z-Guards) Bumpers
Truckwells (H' x W') None
Levelers (Interior or Exterior) 2 Exterior
Ground Level Drive-In Doors (H' x W') 3 Total (10' 0" W x 14' 0" H)
Power (Amps/Volts/Phase) 400 Amps/277-480v/3p 4w
Insulation Foil Scrim
Sprinkler System Calcs (Head Type) 0.45 GPM/3,000
Warehouse Lighting Metal Halide Warehouse Lights
Skylight Ratio Approx. 2% Ratio
14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Property Overview
Voit Real Estate Services | Chase MacLeod | [email protected] | 909.545.8090 Page 5 Shy Assar | [email protected] | 909.545.8091
14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Property Overview
Voit Real Estate Services | Chase MacLeod | [email protected] | 909.545.8090 Page 6 Shy Assar | [email protected] | 909.545.8091
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Lease Comps# Address City1 13940 Magnolia Ave Chino2 5270 Edison Ave Chino3 5002 Lindsay Ct Chino4 14323 Fern Ave Chino5 12240 East End Ave Chino6 13828 Mountain Ave Chino7 13626 Monte Vista Ave, Unit B Chino8 13901 Yorba Ave Chino9 1009-1027 Brooks St Ontario10 1702 S. Cucamonga Ave Ontario11 708 Nogales St City of Industry12 19224 E. Walnut Dr City of Industry13 1365 Darius Ct City of Industry14 19877 Quiroz Ct City of Industry15 21305 Ferrero Pkwy City of Industry
Sale Comps# Address City1 1181 E. Belmont St Ontario2 883 S. Azusa Ave City of Industry3 13001 Temple Ave City of Industry4 15323 E. Proctor Ave City of Industry5 10700 7th St Rancho Cucamonga6 2121 Business Pkwy Ontario7 19400 E. San Jose Ave City of Industry8 1690 Milliken Ave Ontario9 1705 E. Francis St Ontario10 1468 Davril Cir Corona11 425 S. Hacienda Blvd City of Industry12 1801 Railroad St Corona13 803 S. Tucker Ln City of Industry14 510 Alcoa Cir Corona15 181 Via Trevizio Corona16 755 Trademark Cir Corona17 5911 Schaefer Ave Chino18 3549-3553 Placentia Ct Chino19 4850 Eucalyptus Ave, Bldg F Chino
14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Sales and Lease Comparables
Voit Real Estate Services | Chase MacLeod | [email protected] | 909.545.8090 Page 7 Shy Assar | [email protected] | 909.545.8091
LEASE COMPARABLES*
Map # Date Address City Leased SF Office Rent PSF Free Rent Lessee LessorAnnual
Increases Comments/Notes
1 02/16 13940 Magnolia Avenue Chino 47,917 SF -- $0.55 NNN 1 mo Argos Material Dist. 2000 Gold, LP 3% Annually --------------
2 07/14 5270 Edison Avenue Chino 39,723 SF 18% $0.54 NNN 3 mos Pacific Coast Manufacturing Pegasus Bay, LLC 3% Annually --------------
3 2/16 5002 Lindsay Court Chino 32,000 SF -- $0.72 G 1 mo Uni-Pac Oscar Lin 3% Annually -------------
4 07/14 14323 Fern Avenue Chino 25,000 SF 8% $0.71 G 2 mos JF Manufacturing 3% Annually -------------
5 03/14 12240 East End Avenue Chino 28,662 SF -- $0.67 G 4 mos CB E-Commerce Crawford Family Trust 3% Annually -------------
6 11/15 13828 Mountain Avenue Chino 41,166 SF 5% $0.645 G 1 mo El and El Wood Products Golden Giant Liong, LLC 3% Annually Freestanding Building
7 01/16 13626 Monte Vista Avenue, Unit B Chino 14,080 SF -- $0.75 G 1 mo Linco International E.B.B. Properties 3% Annually --------------
8 11/15 13901 Yorba Avenue Chino 25,000 SF 8% $0.71 G 0 Yes Depot, Inc Majestic Realty Co 3% Annually Renewal
9 03/14 1009-1027 Brooks Street Ontario 23,204 SF 4% $0.75 G 0 --------------- HOS Properties 5% Annually As-Is
10 01/15 1702 S. Cucamonga Avenue Ontario 20,202 SF 9% $0.77 MG 0 Altech, Inc WNL Ontario Yes --------------
11 07/15 708 Nogales Street City of Industry 20,993 SF 5,076 SF $0.85 G 1 mo Acosta, Inc Dedeaux Enterprises, LLC 3% Annually 24' CL, 200 amp, 1 GL/2 DH
12 03/15 19224 E. Walnut Drive City of Industry 21,675 SF 4,663 SF $0.88 NNN 1 mo America Auto Parts Cntr Chalmers - Walnut, LLC 3% Annually 24' CL, Option to extend,
13 08/15 1365 Darius Court City of Industry 23,040 SF 3,000 SF $0.79 G 1 mo PT Cabinetry, Inc Nuflex Investments, Inc 3% Annually 18' CL, 1 GL/2 DH, 600 amps
14 05/15 19877 Quiroz Court City of Industry 24,680 SF 7,566 SF $0.73 G 1 mo Elegant Stone/Granite Shea Properties 3% Annually 1 GL/3 DH, 400 amps, 18' CL
15 11/15 21305 Ferrero Parkway City of Industry 28,193 SF 1,771 SF $0.76 G 0 HD Technology AEW 3% Annually 1 GL/3 DH, 27' CL, 400 amps
*As of April 2016 there is only one (1) availability for lease in Chino between 20,000 - 30,000 SF (Asking rental rate is $0.755 Gross)
SALE COMPARABLESMap # Address City SF Yr. Built Sale Price $ / SF Buyer Seller Buyer Type Comments/Notes
1 1181 E. Belmont Street Ontario 21,726 SF 2015 $3,585,000 $165.01 Godfrey Ching Shyr JBG Development User 2 GL/3 DH
2 883 S. Azusa Avenue City of Industry 32,300 SF 1998 $5,300,000 $164.09 XWN Properties LLC Jeli Properties, LLC User ----------------
3 13001 Temple Avenue City of Industry 56,496 SF 2015 $8,650,000 $153.11 Yang Yang S & C Property Dev., Inc User ----------------
4 15323 E. Proctor Avenue City of Industry 27,240 SF 1972 $4,086,000 $150.00 Tripod Property, LLC Boaz Realty, LLC User ----------------
5 10700 7th Street Rancho Cucamonga 42,583 SF 1982 $6,266,500 $147.16 ATG Electronics, Inc Barb Family Living Trust User 2 GL
6 2121 Business Parkway Ontario 44,984 SF 2016 $6,522,680 $145.00 -------------------- Frewing Dev. User High Image Corp Bldg, 32' CL
7 19400 E. San Jose Avenue City of Industry 26,795 SF 1980 $3,850,000 $143.70 Fortune Dynamic RE, LLC Foria Investments, LP Investor ----------------
8 1690 Milliken Avenue Ontario 52,387 SF 2008 $7,334,180 $140.00 Kazarian Family Trust Mintra Investments, LLC Investor 1200 amps, 28' CL,1 GL/5 DH
9 1705 E. Francis Street Ontario 23,356 SF 2015 $3,269,840 $140.00 RSD Shelby Office Park, LLC User 2 GL/2 DH
10 1468 Davril Circle Corona 38,322 SF 1990 $15,210,148 $135.96 Morningstar General JR Associates User Desirable Corona location, yard
11 425 S. Hacienda Blvd City of Industry 51,823 SF 1997 $7,000,000 $135.08 Rexford Industrial Realty, LP CCR&B III, LLC Investor ---------------
12 1801 Railroad Street Corona 24,059 SF 1988 $3,250,000 $135.08 Anthony Alosi Thomas Corey User ---------------
13 803 S. Tucker Lane City of Industry 29,197 SF 1974 $3,925,000 $134.43 Tucker Association, LLC Pace Trust User ----------------
14 510 Alcoa Circle Corona 29,244 SF 2004 $3,943,500 $134.85 Richard Barteaux Charles Zhang Investor ---------------
15 181 Via Trevizio Corona 23,250 SF 2005 $3,100,000 $133.33 Steve Rumsey Portrait Construction User --------------
16 755 Trademark Circle Corona 34,312 SF 2001 $4,556,000 $132.78 Motive Energy, Inc Plak Smacker, Inc User High image, concrete truck apron
17 5911 Schaefer Avenue Chino 59,041 SF 2004 $7,262,500 $123.01 Chengliang Tang Goodhope Bags User 26' Clearance
18 3549-3553 Placentia Court Chino 60,374 SF 1986 $7,400,000 $122.57 Heitman Architect Investments Investor Short term leaseback
19 4850 Eucalyptus Ave, Bldg F Chino 86,204 SF 1998 $9,750,000 $113.10 Mukesh Batta Clive McFerran User 1600 amps, 30' CL, 2 GL/11 DH
14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Sales and Lease Comparables
Voit Real Estate Services | Chase MacLeod | [email protected] | 909.545.8090 Page 8 Shy Assar | [email protected] | 909.545.8091
OWN VS. LEASE
14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | F inance Opt ions
Purchase Assumptions Per sq ft Lease AssumptionsSize (Square feet) $141 52,991 Size (Square feet) 27,016Initial Purchase Price $7,495,000 NNN Lease rate per RSF $0.55Tenant Improvements $0.00 0 Monthly lease cost net of utilities $14,859Total Purchase Price $7,495,000 Monthly utilities $0.00 $0Down Payment 10% $749,500 Monthly lease cost plus utilities $14,859Loan Amount $6,745,500
Start-up Costs Start-up CostsDown Payment $749,500 Prepaid Rent $14,859Estimated Closing costs $36,399 Security Deposit $14,859Cost Segregation $0
Total out of pocket costs $785,899 Total out of pocket costs $29,718
Monthly Costs Per sq ft Monthly Costs Per sq ftMortgage Payment (P&I) $38,067 Lease Payment $0.55 $14,859Property Taxes 1.1% $6,995 Property Taxes INCAssociation Dues $1,583 Operating Expenses $0.18 $4,863COA/CAM $1,725 Association Dues $0.00 $0Avg Rental Income for lease term $19,016
Total Monthly Costs $29,355 Total Monthly Costs $19,722
Net Monthly Ownership Cost, Net of Tax Benefits Net Monthly Lease Cost
Purchase and Alloc to Bldg $7,495,000 90% Tax Benefits 40%39 yrs 12 mos Depreciation Benefit n/a
Monthly depreciation @ 40% tax bracket $5,765 Operating Expense Deduction $825Property Tax, Utilities, COA/CAM $4,121 Lease Deduction $5,944Interest Deduction (5 year avg) $12,182 Utilities $633Total Tax Benefits $22,068 Total Tax Benefits $6,577
Net Effective Ownership Costs $7,287 Total Effective Monthly Lease Costs $13,145Net Cost Per SF to Own $0.14 Net Cost Per SF to Lease $0.49
Appreciation Benefits of OwnershipRate of Assumed Appreciation per Year 3.0%
Appreciated Value Year 1 $7,719,850Appreciated Value Year 2 $7,951,446Appreciated Value Year 3 $8,189,989Appreciated Value Year 4 $8,435,689Appreciated Value Year 5 $8,688,759Appreciated Value Year 6 $8,949,422Appreciated Value Year 7 $9,217,905Appreciated Value Year 8 $9,494,442Appreciated Value Year 9 $9,779,275Appreciated Value Year 10 $10,072,653Total Appreciation $2,577,653Less Down Payment -$749,500Net Appreciation $1,828,153Monthly Appreciation $15,235Monthly Appreciation per RSF $0.29
OWN LEASE
For additional information, please contact:Matthew Foster
Union Bank 949-553-4372949-433-0091
Voit Real Estate Services | Chase MacLeod | [email protected] | 909.545.8090 Page 9 Shy Assar | [email protected] | 909.545.8091
SBA OPTIONS
14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | F inance Opt ions
Total Purchase Cost $7,495,000
10 yrs Fixed 20 yrs Fixed 25 yrs Fixed 20 yrs Fixed1st 2nd 1st 2nd
Down Payment $749,500 $749,500LTV 90% 90%
Loan Amount $4,497,000 $2,248,500 $4,497,000 $2,248,500Financed Fee $50,842.75 $50,842.75
Rate (%)* 3.750% 4.820% 4.300% 4.820%Amortization 25 20 25 20Term (Years) 20 20 25 20
504 Monthly Payment ($23,120.48) ($14,946.94) ($24,488.04) ($14,946.94)Monthly Payment Estimate 504 Total ($38,067.42) 504 Total ($39,434.98)
Interest Only Payment Estimate
Loan Fee %* 0.500% 2.150% 0.500% 2.150%Loan Fee $22,485.00 $50,842.75 $22,485.00 $50,842.75 **
Appraisal & Review* $3,000.00 Fee Combined $3,000.00 Fee CombinedEnvironmental* $1,900.00 Fee Combined $1,900.00 Fee Combined
Legal* $0.00 $2,500.00 $0.00 $2,500.00Title (.006% of Loan Amount) $6,814.00 Fee Combined $6,814.00 Fee Combined
Escrow* $1,500.00 Fee Combined $1,500.00 Fee CombinedOther* $700.00 $0.00 $700.00 $0.00
Total $36,399.00 $0.00 $36,399.00 $0.00
*For 504, this is Bank Interim Loan Fee 504 Total $36,399.00 504 Total $36,399.00
Total Out of Pocket Expenses(Down Payment and Closing Costs)
504 Out of Pocket Expense
$785,899 504 Out of Pocket Expense
$785,899
* Required Field - variable information** SBA Loan fee is financed with Debenture
Commercial Real Estate Purchase Analysis
SBA 504 Option 1 SBA 504 Option 2
Estimated Real Estate Loan Fees
Any transaction arising from this comparison is expressly subject to credit approval by Union Bank and to the exectution and delivery of transaction documentation satisfactory to Union Bank. Additional Terms and Conditions not presented in this comparison will apply. Amounts shown are for comparitive purposes only. Actual final transaction amounts may differ. Equal Opportunity Lender.
Financing Solutions Provided by:
14040-14042 Central Ave Chino, CA
52,991 SF @ $141 per SF
Matt Foster Business Development Officer 949-553-4372 949 433 0091 (mobile)
Feb 8, 2016
Voit Real Estate Services | Chase MacLeod | [email protected] | 909.545.8090 Page 10 Shy Assar | [email protected] | 909.545.8091
Exclusively Offered By:
Chase MacLeodVice PresidentP [email protected] # 01899515
Shy AssarAssociateP [email protected] # 01964667
3280 Guasti Road, Suite 100, Ontario, CA 91761 • 909.545.8090 • Lic #01333376 | www.voitco.comLicensed as Real Estate Salespersons by the CA Bur of Real Estate. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. ©2016 Voit Real Estate Services, Inc. All Rights Reserved. Licensed #01333376
OFFERING MEMORANDUM 14040–14042 CENTRAL AVE CHINO
OWNER / USER LEASED INVESTMENT OPPORTUNITY
CHINO, CA