KIPP GSTETTENBAUER, CCIMSenior Vice President | Lic #01405420 858.458.3345 | [email protected]
RYAN KING, CCIMSenior Vice President | Lic #01885401 858.458.3322 | [email protected]
100% ABSOLUTE NNN LEASED MEDICAL INVESTMENT OPPORTUNITY
880 THIRD AVENUE, CHULA VISTA, CA 91911 • ±23,780 SF NNN LEASED MEDICAL BUILDING FOR SALE
INVESTMENT SUMMARY
EXECUTIVE SUMMARY
ADDRESS 880 Third Avenue, Chula Vista, CA 91911
TENANT San Ysidro Health
OFFERING PRICE $22,321,493.30
TOTAL BUILDING SIZE ±23,780 SF
TOTAL LAND SIZE ±87,120 SF (2.0 AC)
CURRENT NET OPERATING INCOME $1,004,467.20
CAP RATE 4.50%
YEAR 10 CAP RATE 5.57%
VRES PCG is pleased to present a rare opportunity to acquire a STNL medical investment located in a dense urban
infill location in San Diego, CA. Located in Chula Vista on the prominent thoroughfare of 3rd Avenue, the property
is home to a brand new lease with San Ysidro Health (SYH). SYH has 19 medical locations in San Diego and is a
prominent medical organization in the community with two new clinics in East County and North County to open in
2020. The Tenant has contributed several million dollars of their own capital to build out the property. SYH is heavily
invested in the property and the building is brand new and fully outfitted for a full medical clinic within South Bay.
The lease is structured at a market lease rate with rare 3% annual increases and a fifteen (15) year initial term.
PRIME RETAIL/MEDICAL LOCATION:
» Exceptional Medical Location in the Heart of Chula Vista, the 2nd largest City in San Diego County.
» Located on 3rd Ave a Major Thoroughfare, Adjacent to the I-5 Freeway, Chula Vista HS, and the San Diego Harbor.
» With a Population of 433,719 this Chula Vista Location is Highly Visible and a High Traffic Location.
INVESTMENT HIGHLIGHTS
Brand New 15-Year Corporate Lease with San Ysidro Health (SYH)
Prominently Located on 3rd Ave in Chula Vista with Excellent Parking & Identity
Rare Absolute NNN Lease + 3% Annual Escalations Throughout All Lease Term (Including Options)
Brand New Medical Build Out with Strong Credit Tenancy
Located in the Rancho Bernardo Suburb of San Diego (Top 90th Percentile of HH Income in the County).
Located in the Rancho Bernardo Suburb of San Diego (Top 90th Percentile of HH Income in the County).
STRONG MEDICAL TENANCY:
» San Ysidro Health has 34 Patient Locations with 1,200 Total Employees.
» The Organization was Established in 1969, over 50 Years Ago.
» Strong Balance Sheet & Corporate Signature.
» Absolute NNN Lease with Minimal Landlord Responsibilities Making this Ideal for Out of State Investors or Those Looking for a Passive Income Stream.
15-YEAR ABSOLUTE NNN LEASE & 3% ANNUAL INCREASES:
» Rare Absolute Net Lease with No Landlord Responsibilities.
» 3% Bumps Throughout the Lease & Options!
RENTAL INCREASES ANNUALLYLEASE MONTHS MONTHLY RENT/SF ANNUAL RENT
07/01/2019 - 6/30/2020 $3.33/SF $950,248.80
07/01/2020 - 6/30/2021 $3.42/SF $975,931.20
07/01/2021 - 6/30/2022 $3.52/SF $1,004,467.20
07/01/2022- 6/30/2023 $3.62/SF $1,033,003.20
07/01/2023 - 6/30/2024 $3.72/SF $1,061,539.20
07/01/2024 - 6/30/2025 $3.83/SF $1,092,928.80
07/01/2025 - 6/30/2026 $3.76/SF $1,072,953.60
07/01/2026 - 6/30/2027 $3.87/SF $1,104,343.20
07/01/2027 - 6/30/2028 $3.99/SF $1,138,586.40
07/01/2028 - 6/30/2029 $4.11/SF $1,172,829.60
07/01/2029 - 6/30/2030 $4.23/SF $1,207,072.80
07/01/2030 - 6/30/2031 $4.36/SF $1,244,169.60
07/01/2031 - 6/30/2032 $4.49/SF $1,281,266.40
07/01/2032 - 6/30/2033 $4.63/SF $1,321,216.80
07/01/2033 - 6/30/2034 $4.76/SF $1,358,313.60
LEASE ABSTRACTSUITE A-1 & A-2
COMMENCEMENT DATE July 7, 2019
EXPIRATION DATE 06/30/2034
BUILDING SF 23,780 SF
MONTHLY BASE RENT $3.52 PSF + NNN
YEARLY BASE RENT $1,004,467.20
BASE RENT INCREASES 3% annually
LEASE TERM REMAINING Thirteen (13) years
OPTION TO EXTEND Two (2) Five (5) Year Terms with fixed 3% Annual Increases
OPTION 1LEASE MONTHS MONTHLY RENT/SF ANNUAL RENT
07/01/2034 - 6/30/2035 $4.90/SF $1,398,264.00
07/01/2035 - 6/30/2036 $5.05/SF $1,441,068.00
07/01/2036 - 6/30/2037 $5.20/SF $1,483,872.00
07/01/2037 - 6/30/2038 $5.36/SF $1,529,529.60
07/01/2038 - 6/30/2039 $5.52/SF $1,575,187.20
OPTION 2LEASE MONTHS MONTHLY RENT/SF ANNUAL RENT
07/01/2039 - 6/30/2040 $5.68/SF $1,620,844.80
07/01/2040 - 6/30/2041 $5.85/SF $1,669,356.00
07/01/2041 - 6/30/2042 $6.03/SF $1,720,720.80
07/01/2042 - 6/30/2043 $6.21/SF $1,772,085.60
07/01/2043 - 6/30/2044 $6.40/SF $1,826,304.00
$0.00
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YEAR 10 CAP RATE: 5.57%
S I T E P L A N
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scale: 3/16"-1'-0
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23,330.5 sf
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23,780 SF
SYH_PACE FACILITY
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WWW .RAYMONDFOX .COM92108CADIEGOSAN340STEHOTEL CIRCLE NORTH 1660
(619) 296-4595
MEDICAL ARCHITECTURE & CONSULTINGRAYMOND FOX & ASSOCIATES
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SHEET TITLE:PROJECT NUMBER:
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880 THIRD AVENUE CHULA VISTA, CA 91910
17 .035
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P A C E (PROGRAM OF ALL INCLUSIVE CARE FOR THE ELDERLY)
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S P A C E 23,780 SF
PROJECT OVERVIEW
880 THIRD AVENUECHULA VISTA, CA 91911LOCATION
±23,780 SQUARE FEETBUILDING SIZE
87,120 SF (2 ACRES)LOT SIZE
100% OCCUPIEDOCCUPIED
5.34/1,000 SFPARKING RATIO
573-450-33APN
1970 (FULLY RENOVATED 2019)YEAR BUILT
266’ ON THIRD AVENUESTREET FRONTAGE
San Ysidro Health (formerly San Ysidro Health Center) is a non-profit organization committed to providing high quality, compassionate, accessible and affordable health care services for the entire family.
The mission of San Ysidro Health is to improve the health and well-being of the communities we serve with access for all. Originally established along the border in 1969, the organization was founded by seven women in search of medical services for their children. 50 years later, San Ysidro Health now provides innovative services to nearly 97,000 lives in our care through a vast and integrated network of 34 program sites across San Diego County including: medical and dental clinics, behavioral health centers, HIV centers, WIC nutrition centers, mobile medical units, school-based health centers, chiropractic services, pediatric developmental clinic, teen clinic, senior health center and Program for All Inclusive Care for the Elderly (PACE).
Our organization’s new name and brand identity pay homage to its humble beginnings in the community where it was established 50 years ago. This community was named in honor of San Isidro Labrador, the patron saint of farmers, day laborers, and rural communities—the working poor. San Isidro spent his life as a hired hand and always shared what little he had, even his meals, with people in need. These values of compassion and care for others still ring true in the organization’s mission to improve the health and well-being of all in the communities we serve, especially the most vulnerable across San Diego County. With this rebranding the goal is to make the organization’s innovative healthcare services more identifiable, convenient and accessible for the thousands of families that are served. It is our honor and privilege to emulate these values daily.
In addition to providing medical, dental and behavioral health services San Ysidro Health’s Specialty services include:
» Dental care services for children who are medically compromised, have special needs and/or are behaviorally challenged.– Children’s Dental Clinic
» Adult special needs dental services – King-Chavez Health Center » Urgent care services – San Ysidro Health Chula Vista » San Ysidro Health’s retail clinic – Mi Clinica at Northgate Gonzalez Market » San Ysidro Health is a Federally Qualified Health Center and a Federal Tort Claims
Act Deemed facility. The Federal government acts as the primary insurer. FTCA deeming enables us to invest more to increase health care services and fund quality improvement activities.
This health center receives HHS funding and has Federal Public Health Service (PHS) deemed status with respect to certain health or health-related claims, including medical malpractice claims, for itself and its covered individuals.
TENANT OVERVIEW
SAN YSIDRO HEALTH CARE
WWW.SYHC.ORG
THIRTY-FOUR Total Patient Locations
1,200 Total Employees
97,000 Total Patients
NINETEEN Medical Locations
EIGHT Dental Locations
SIX Behavioral Health Locations
SIX Support Locations
FIVE WIC Locations
THIRD AVENUE
L STREET
AVERAGE $/SF: $820/SF AVERAGE CAP RATE: 5.12%
721 W. 1ST STREETTUSTIN, CA 92780
1525 LONG BEACH BLVDLONG BEACH, CA 90813
769 MEDICAL CENTER COURTCHULA VISTA, CA 91911
3901 S. WESTERN AVENUELOS ANGELES, CA 90062
Tenant DaVita Kidney Care Tenant Fresenius Tenant Sharp Tenant DaVita Kidney Care
Building SF 11,499 SF Building SF 8,600 SF Building SF 45,000 SF Building SF 9,988 SF
Land Area 54,014 SF Land Area 25,265 SF Land Area 435,600 SF Land Area 30,056 SF
Sale Price $8,400,00 Sale Price $7,995,000 Sale Price $27,500,000 Sale Price $7,050,000
Price/SF $730.50 Price/SF $929.65 Price/SF $611.11 Price/SF $705.85
Sale Date 06/22/2020 Sale Date 02/18/2021 Sale Date 06/29/2018 Sale Date 06/11/2019
Cap Rate 5.19% Cap Rate 5.35% Cap Rate 4.75% Cap Rate 5.50%
1341 W. LA PALMA AVENUEANAHEIM, CA 92081
1090 ATLANTIC AVENUELONG BEACH, CA 90813
825 E. BROADWAYSAN GABRIEL, CA 91776
1300 RANCHO DEL ORO ROADOCEANSIDE, CA 92054
Tenant DaVita Kidney Care Tenant DaVita Kidney Care Tenant DaVita Kidney Care Tenant VA
Building SF 14,800 SF Building SF 9,200 SF Building SF 11,450 SF Building SF 90,000 SF
Land Area 36,155 SF Land Area 23,509 SF Land Area 34,412 SF Land Area 23,509 SF
Sale Price $11,450,000 Sale Price $8,421,580 Sale Price $11,200,000 Sale Price $8,421,580
Price/SF $773.65 Price/SF $915.39 Price/SF $978.17 Price/SF $915.39
Sale Date 04/14/2016 Sale Date 04/08/2019 Sale Date 12/10/2018 Sale Date 04/08/2019
Cap Rate 4.91% Cap Rate 5.00% Cap Rate 5.25% Cap Rate 5.00%
U N I T E D S T A T E S O F A M E R I C A
M E X I C O
U N I T E D S T A T E S O F A M E R I C A
M E X I C O
Del Mar
805
15
163
52
8
94
125
5
15
78
805
5
56
76
76
76
8
125
125
54
5
LemonGrove
La Mesa
El Cajon
BostoniaGranite
Hills Crest
HarbisonCanyon
North IslandNaval Air Station
SpringValley
RanchoSan Diego
Casa de Oro/ Mt Helix
WinterGardens
EucalyptusHills
Santee
Miramar
Mira Mesa
TorreyPines Miramar
Marine CorpsAir Station
Jamul
DescansoAlpine
SolanaBeach
RanchoSanta Fe
Encinitas
Poway
Ramona
Vista
San MarcosEscondido
Carlsbad
Oceanside
CampPendleton
Bonsall
Rainbow
Fallbrook
ImperialBeach
ScrippsRanch
KearnyMesa
SorrentoMesa
SorrentoValley
BorregoSprings
MountLaguna
Potrero
Boulevard
Jacumba
Julian
San DiegoCountryEstates
Campo
LaPresa
Eastlake
Bonita
OceanBeach
CentralSan Diego
PtLoma
Chula Vista
San YsidroOtay Mesa
PineValley
San DiegoInternational
Airport
College /City Heights
Highly Visible, High Traffic Location
THIRD AVENUE @ K STREET
19,614 CPD
THIRD AVENUE @ L STREET
21,176 CPD
THIRD AVENUE
HEADQUARTERS & ADMINISTRATION
HEALTH, WELLNESS & SPORTS
TOURISM, TRAVEL & OVERNIGHT LODGING
EDUCATION & INNOVATION CENTERS
ADVANCED MANUFACTURING & CLEAN TECH
INFORMATION, COMMUNICATION & TECHNOLOGY
C H U L A V I S T A K E Y I N D U S T R I E S
The City of Chula Vista is located at the center of one of the richest cultural, economic and environmentally diverse zones in the United States. It is the second-largest City in San Diego County with a population of 433,719. Chula Vista boasts more than 52 square miles of coastal landscape, canyons, rolling hills, mountains, quality parks, and miles of trails. Chula Vista is a leader in conservation and renewable energy, has outstanding public schools, and has been named one of the top safest cities in the country.
Chula Vista has made exceptional advances in preparing the City for business expansion and attraction, collaborating with Baja California officials, and creating an environment for economic growth and prosperity. The City has established economic development initiatives that have created quality infrastructure, a strong consumer base and a well-educated and experienced workforce. Civic leaders are not stopping there; amassing a large volume of commercial/industrial development lands, pursuing a progressive business and employment investment policy, and completing acquisition of the 375-acre University Park and Innovation District site that will create even greater opportunities for your business in the future. The 535-acre Chula Vista Bayfront project will transform the area into a thriving residential and world-class waterfront resort destination. The Plan will establish thousands of new jobs, create new public parks, protect natural coastal resources, provide conference and visitor-serving amenities and build an important asset for the entire San Diego region.
Shopping, dining, and entertainment abound with two major malls and a historic downtown district. With more than 100 of the country’s top specialty stores, Chula Vista Center in the downtown area boasts major retailers, dining, movie theaters, and more than 100 fine specialty shops. And, Third Avenue Village, billed as the cultural center of the city, features historic buildings, unique shops, a weekly farmers market, landmark restaurants, and seasonal outdoor music concerts.
433,719 Population
$60,257 Median Household Income
$421,417 Median Home Value
128,109 Total Households
10,541 Total Businesses
101,460 Total Employees
56% White Collar Jobs
21% Bachelor/Grad Degree
21,176 CPD Third Avenue + L Street
19,614 CPD L Street + Fourth Avenue
26,719 CPD Third Avenue + Moss Street
15,074 CPD Fourth Avenue + Westby Street
More than 60 well-maintained parks and sports fields are available for outdoor sports, recreation activities, and picnics. Tour the Chula Vista Elite Athlete Training Center and see America’s best athletes. Enjoy 32 acres of water wonder with rides, slides, exotic marine animals, and plenty of family fun at Aquatica, SeaWorld’s Waterpark. Or, hit the green on one of four challenging yet playable golf courses. From rock and roll to rap to reggae - world-class entertainers perform at the North Island Credit Union Amphitheatre, San Diego County’s premiere outdoor music venue.
Many well established neighborhoods, contemporary communities, start-up firms, corporations, nationally recognized entertainment venues, the nation’s only warm weather athlete training center, an award winning nature center and a historic downtown all contribute to Chula Vista’s attraction for both families and businesses.
LOAN AMOUNT $12,150,000
MAX LTV 65%
MIN DEBT COVERAGE RATIO 1.35x
INTEREST RATE 3.625%
LOAN TERM 10 Years
AMORTIZATION 30 Years
LENDER FEE 1%
PREPAYMENT PENALTY No Penalty
*Please note these quotes are subject to change upon further analysis of property and borrower.
DEBT SUMMARY
PASHA JOHNSON PACIFIC SOUTHWEST REALTY SERVICES858.522.1433 | [email protected]
FINANCING PROVIDED BY:
4180 La Jolla Village Drive, Suite 100, La Jolla, CA 92037 | 858.453.0505 | 858.408.3976 F | www.voitco.comLicensed as Real Estate Brokers by the DRE. 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. ©2019 Voit Real Estate Services, Inc. All Rights Reserved.
KIPP GSTETTENBAUER, CCIMSenior Vice President | Lic #01405420 858.458.3345 | [email protected]
RYAN KING, CCIMSenior Vice President | Lic #01885401 858.458.3322 | [email protected]
C H U L A V I S T A
Broadway Plaza
Genesis Square Center
5
805
San DiegoCountry Club
San DiegoCountry Club
Chula VistaHigh SchoolChula VistaHigh School
HilltopHigh School
HilltopHigh School
Scripps MercyHospital
Scripps MercyHospital
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