PARAMOUNTbusiness park

EXECUTIVE SUMMARY

JUNE 2020

63

19–

63

21 & 6

323

–6

421

EA

ST

ALO

ND

RA

BLV

DP

AR

AM

OU

NT, C

A

executive summaryNewmark Knight Frank (NKF) is pleased to present the opportunity to acquire 6319–6321 & 6323–6421 East Alondra Boulevard in Paramount, California (the “Property”, “Project”, or “Paramount Business Park”), a 63,214-square-foot, two-building, multi-tenant industrial project located within the Los Angeles South Bay industrial submarket.

The buildings are currently 100% leased to two tenants: The United States of America General Services Administration (“GSA” or “Government”) (Moody’s: Aaa) and VNSM—an established sheet metal subcontractor operating since 1934 with an impressive resume that includes projects such as Griffith Park Observatory, Disneyland, 2028 Olympics and multiple public works contracts. The offering also includes a long-term lease of two radio tower pads to Hi-Favor Broadcasting, LLC, which broadcasts for KLTX, a radio station that has been serving greater Los Angeles since 1926. All tenants have remained current on their rental obligations throughout the pandemic, demonstrating the durability of the income stream.

The GSA has occupied Paramount Business Park since 2006 and, with more than 15.8 years of remaining lease term, they recently expanded into an additional 18,127 square feet. VNSM considers the Property their

headquarters since taking occupancy in 2013 and recently renewed their commitment to the Property by extending their lease through July 31, 2023.

The Property has maintained a strong historical occupancy due to the desirable small building amenities such as high ceiling clearance, above-market parking, fenced yard areas, and a combination of dock-high and ground-level loading which ideally meet the demand within the submarket.

Investors will benefit from 10 years of weighted average remaining lease term from a committed tenant base and the opportunity to acquire a well-located industrial project situated on 6.41 acres in one of the most robust industrial submarkets in the nation. With a FAR of just 0.23:1, investors stand to benefit from future upside with the potential to redevelop the radio tower pads.

PARAMOUNTbusiness park

$18,000,000Offering Price

$944,800Year 1 NOI

5.25%Year 1 Cap Rate

$1.06 PSF MGIn-Place Rent

100%Occupancy

10.0 YearsWeighted Average Lease Term

OF

FE

RIN

G S

UM

MA

RY

RADIO TOWER PAD

RADIO TOWER PAD

PROPERTY LINE

6319–6321 EAST ALONDRA BLVD

6323–6421 EAST ALONDRA BLVD

pro

pe

rty

sum

mar

y

6.41 AcresTotal Land Area

63,214 SFTotal Rentable Area

0.23:1Building FAR

265 Spaces (4.19/1,000 SF)Total Parking

PA M2Zoning

COMBINED TOTAL

The United States of AmericaTenant

35,156 SFTotal Rentable Area

6,912 SFMezzanine

FourDock-High Doors (Truck Wells)

TwoGround-Level Doors (Drive-in)

22’Clear Height

1985/2020Year Built/Renovated

2 x 400-AmpPower

February 2036Lease Expiration

6319–6321 ALONDRA BLVD

PHL, Inc. dba VNSMTenant

28,058 SFTotal Rentable Area

7,597 SFMezzanine

TwoDock-High Doors (Truck Wells)

TwoGround-Level Doors (Drive-in)

22’Clear Height

1984/2013Year Built/Renovated

2 x 400-AmpPower

July 2023Lease Expiration

6323–6421 ALONDRA BLVD

Hi-Favor BroadcastingTenant

43,745 SFLand Area

RADIO TOWER PADS

June 2028Lease Expiration

SITE PLAN

Radio Tower

Radio Tower

ALON

DRA BLVD

Private Dr.

Private Dr.

Private Dr.

Private Dr.

Private Dr.

Private Dr.

Los Angeles River710

6319–6321

6323–6421

The Property's income stream has recently demonstrated it's durability with 100% of rents

collected throughout the pandemic.

ITTELLA FOODS RESERVED PARKING

GSA’S FENCED

YARD

VNSM’S FENCED YARD

investment highlightsHIGHLY FUNCTIONAL INDUSTRIAL BUILDINGS

The 6319–6421 E. Alondra Boulevard buildings are located in the Paramount Business Park, a master-planned project with protective CC&Rs and a professionally managed association. The two, renovated, concrete tilt-up industrial buildings offer features that meet the demand within the Southern California industrial market, including rare fenced yard areas, dock-high and ground-level loading, 22’ clear height, functional mezzanine space and ample parking.

EXCEPTIONAL LOCATION

• The Property is located within twenty minutes from the Ports of Los Angeles/Long Beach, LAX and Long Beach Airport

• The premier, South Bay location provides immediate access to both executive and affordable housing and a deep, skilled labor pool that the Greater Los Angeles Metro offers

STABLE CASH FLOW & SECURE TENANCY

• The Property’s income stream has recently demonstrated it’s durability with 100% of rents collected throughout the pandemic

• 56% of the property is leased to the United States of America (Moody’s: Aaa) through February 2036, providing a stable and secure income stream

• The remainder of the property is leased to VNSM, a sheet metal subcontractor in business for 86 years, which considers the Property their headquarters and recently extended their lease through July 2023

• The offering also includes a long-term lease of two radio tower pads to Hi-Favor Broadcasting, LLC through June 2028, providing additional stable cash flow for the Property

COVERED LAND OPPORTUNITY

The business-friendly City of Paramount allows for a FAR of up to 2.5:1. Inclusive of the radio tower pads, the Property features a low FAR of just 0.23:1, presenting investors with a variety of future redevelopment opportunities while enjoying the present, stabilized cash flow.

SUPERB MARKET FUNDAMENTALS

The 222-million-square-foot, South Bay industrial market has historically been one of the strongest markets in Los Angeles County due to its proximity to the Ports of Los Angeles and Long Beach and LAX, the region’s major economic engines. As of 1Q 2020, the South Bay reported a total vacancy rate of 1.1% with total asking rents of $0.93 PSF NNN, near an all-time low and high respectively.

PA

RA

MO

UN

T

JUNE 2020

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.

Corporate License #01355491

PA

RA

MO

UN

Tb

usi

ne

ss p

ark

Sean FulpExecutive Managing Director 310.407.6596sfulp@ngkf.com CA RE Lic. #01389064

Mark SchuesslerDirector310.201.2075mark.schuessler@ngkf.comCA RE Lic. #02033871

Ryan PlummerManaging Director 310.407.6570ryan.plummer@ngkf.com CA RE Lic. #01765854

Ryan TetraultAssociate310.201.2062ryan.tetrault@ngkf.comCA RE Lic. #01996711

PRIVATE CAPITAL CONTACTS

Kevin ShannonCo-Head, U.S. Capital Markets 310.491.2005kevin.shannon@ngkf.com CA RE Lic. #00836549

Ken WhiteExecutive Managing Director 310.491.2006ken.white@ngkf.com CA RE Lic. #01788506

INSTITUTIONAL SALES CONTACTS

John McMillanVice Chairman 310.491.2048john.mcmillan@ngkf.com CA RE Lic. #01103292

Greg StummAssociate Director 310.491.2079greg.stumm@ngkf.com CA RE Lic. #01954921

LEASING CONTACTS

Brian BowisManaging Director310.407.6598brian.bowis@ngkf.com CA RE Lic. #01780922

FINANCING CONTACTS

Scott SchumacherSenior Managing Director310.491.2018scott.schumacher@ngkf.comCA RE Lic. #01078450