O F F E R I N G S U M M A RY
Holliday GP Corp. (“HFF”), a California licensed real estate broker, California License #01385740
T H E O P P O RT U N I T YHFF, as exclusive advisor, is pleased to present the opportunity to acquire Rio 9095 (hereinafter, the “Property”), a best-in-submarket class A office building prominently located in Mission Valley, one of San Diego’s most densely-populated, amenity- and transit-oriented, mixed-use submarkets. Ideally situated within Mission Valley’s central core, the Property is within walking distance of two trolley stations, nearly 1 million square feet of retail amenities, and over 3,000 multi-housing units, soon to increase to 7,000+ units with the delivery of the nearby master-planned Civita development.
Encompassing 81,799 rentable square feet (BOMA) in four stories and currently 95.6% leased, Rio 9095 offers the ideal combination of stable in-place cash flow and near-term value enhancement potential. Featuring a balanced rollover schedule and diversified rent roll with no single tenant occupying more than 15% of the NRA, the Property’s income stream is generated by a high quality tenant roster that includes national, international, and investment-grade tenancy (61.7% of the NRA). Moreover, with an overall weighted average remaining lease term of 4.0 years and in-place rents that are 12.5% below market, Rio 9095 presents an excellent mark-to-market and yield-enhancement opportunity.
Rio 9095 features extremely attractive physical elements including steel-frame construction, continuous window line, 14’ slab-to-slab heights, highly functional floor plates, and a generous 5.1:1,000 USF parking ratio. The exceptional quality of the Property combined with it’s ideal location in Mission Valley, which is in the midst of an unparalleled urbanization, make Rio 9095 the premier opportunity to acquire an institutionally owned and maintained class A office building significantly below replacement cost in a market that is poised for continued growth.
2
BY T H E N U M B E R S
81,799 net rentable area (BOMA remeasurement)
95.6% leased
61.7% national presence / credit tenancy
5.1:1,000 usf parking ratio
5.54 acre*land area
365 parking spaces
±20,000 sf average floor plate
*2.71 acres owned with Building and parking lot atop and 2.83 acres leasehold with parking lot atop
81,236 net rentable area (as-leased)
3
I N V E ST M E N T H I G H L I G H TSD U R A B L E I N - P L A C E I N C O M E S T R E A M W I T H V A L U E G R O W T H P O T E N T I A L
Rio 9095 is 95.6% leased to a diverse tenant roster consisting of 13 unique tenants spanning across multiple industries and no tenant occupying more than 15% of the Property. With a balanced rollover schedule and national/credit tenancy (61.7% of the NRA), an investor is provided a dependable income stream while also capitalizing on near-term lease expirations at below market rents. Average in-place rents are 12.5% below market with 59.7% of the NRA expiring over the next five years, providing investors a mark-to-market rent opportunity to further grow NOI while the long term, stable tenants ensure a durable cash flow stream. • 95.6% leased with a balanced rollover schedule resulting in yield
stability • 61.7% National Presence/Credit Tenancy • Diverse tenant roster consisting of 13 unique tenants spanning
multiple industries.
REN
T (P
SF/M
OS) RSF EXPIRIN
G
11.8% 15.8% 14.9% 17.0%
21.1%
4.1%
11.0%$3.09
$3.03 $3.23 $3.33 $3.41 $3.54 $3.59$3.44 $3.59 $3.83 $3.87 $3.99 $4.11 $4.32
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
$0.00$0.50$1.00$1.50$2.00$2.50$3.00$3.50$4.00$4.50$5.00
% RSF Expiring Base Rent Upon Expiration Market Rent
G R O S S B A S E R E N T ( U P O N E X P I R A T I O N ) V S . M A R K E T R E N T
4
D E S I R A B L E C L A S S A O F F I C E A S S E T
Constructed in 2005, Rio 9095 features a high-image exterior architecture, steel frame construction, continuous window line, 14’ slab-to-slab, 9’-10’ clear heights, and abundant 5.1:1,000 USF parking. Moreover, the multi-tenant design and highly functional floor plates allow for a multitude of options to meet various tenant sizes and layout requirements. The Property is widely considered to be a top tier Class A office asset in the Mission Valley Submarket.• 14’ slab-to-slab• 9’-10’ ceiling heights• 5.1:1,000 SF parking; highest parking ratio in Mission Valley• Top tier asset within the Mission Valley Class A competitive set
A T T R A C T I V E B A S I S B E L O W R E P L A C E M E N T C O S T
The Property provides investors the opportunity to acquire an institutional quality asset in an irreplaceable location significantly below replacement cost, which is estimated to be over $500 PSF.
D I V E R S I F I E D T E N A N T R O S T E R
1 2 % E N G I N E E R I N G S E R V I C E S
9 % B A N K I N G
1 7 % R E A L E S T A T E
S E R V I C E S
1 3 % C A P I T A L
M A R K E T S
1 3 . 8 % T E C H N O L O G Y
T E C H N O L O G Y F I N A N C I A L S E R V I C E S O T H E R I N S U R A N C E G O V E R N M E N T L E G A L
2 2 . 8 % F I N A N C I A L S E R V I C E S
1 4 . 4 % O T H E R
1 4 . 5 % I N S U R A N C E
1 5 . 1 % G O V E R N M E N T
1 4 . 9 % L E G A L
5
QUALCOMM REDEVELOPMENT
B O U R G E O N I N G U R B A N S U B M A R K E T
Rio 9095 is located in one of San Diego’s most central and accessible business centers between Downtown San Diego and San Diego’s coastal communities. Mission Valley is experiencing robust urbanization with over 10 new developments/re-developments currently under construction, planned or proposed. New residential construction is reaching a historic high in the Mission Valley submarket, and Rio 9095 shares close proximity to approximately 10,700 residential units. The Property is near 6M SF of retail, over 200 restaurants, 3 bus stops, and 2 trolley stops.
T R A N S I T & A M E N I T Y - O R I E N T E D I N F I L L L O C A T I O N
• Located within walking distance of two retail power centers with abundant dining and shopping amenities (8-minute walk to the Rio Vista Shopping center and an 11-minute walk to Fenton Marketplace)
• 10-minute walk to two trolley stations• 12-minute walk to Civita (4,000+ housing
units at completion as well as numerous other apartment and condominium communities)
• Within an 8-min walk to 3 seperate MTS bus stops
15
FENTON MARKETPLACE
Over 590,000 sf of retail amenities
805
8
FRIA
RS R
D
QUALCOMM WAY
PROMENADE AT RIO VISTA APARTMENTS
970 Units
CA
MIN
O D
LE
RIO
N
LIGHT RAIL
CIVITA DEVELOPMENT400,000 SF office space
480,000 SF retail600 single family homes3,900 apartments units
SAN DIEGO
MARRIOTT
RIO VISTA SHOPPING CENTER 251,000 sf of
retail amenities
BUS STOP
BUS STOP
BUS STOPBUS STOP
6
SAN DIEGO INTERNATIONAL
AIRPORT MISSION BAY
WESTFIELD MISSION VALLEY1.6 million sf retail
HILLCREST
CIVITA DEVELOPMENT400,000 SF office space
480,000 SF retail600 single family homes3,900 apartments units
UNIVERSITY OF SAN DIEGO
805
URBANIZATION OF MISSION VALLEY
New residential construction is reaching a historic high in the Mission Valley submarket. There are over 7,700 units existing in Mission Valley, 762 units have been completed since 2015 and currently over 10 new developments currently under construction, planned or proposed. The increasing residential density will support additional office demand, thus driving higher occupancy and bolstered rent growth.
8
SAN DIEGO UNION TRIBUNE CAMPUSREDEVELOPMENT
CORONADO
LIG
HT R
AIL
SCRIPPS MERCY HOSPITAL
TOWN & COUNTRY RESORT /
CONVENTION CENTER REDEVELOPMENT
FASHION VALLEY1.8 million sf retail
RIVERWALK REDEVELOPMENT
RIO VISTA SHOPPING
CENTER 251,000 sf of
retail amenities
RIO VISTA TROLLEY STATION
MISSION VALLEY CENTER
STATION
HAZARD CENTER STATION
HAZARD CENTER PROJECT
CAMINO DEL RIO N
DOWNTOWN SAN DIEGO
PACIFIC OCEAN
163
LIGHT RAIL TO DOWNTOWN
RIO SAN DIEGO RD
FENTON MARKETPLACEOver 590,000 sf
of retail amenities
FRIARS RD
UNDER CONSTRUCTION
Mission Valley Suites Hotel (236 keys)Millennium Mission Valley (291 apartments units | 5,000 sf office | 4,000 sf retail)SDUT Campus Redevelopment (330,000 sf office)Civita Development (400,000 sf office | 480,000 sf retail | 3,900 apartment units)
PLANNED
Riverwalk Redevelopment (2,500 apartment units | office | hotels)Hazard Center Project (473 total residences)Town & Country Resort & Convention Ctr (renovated hotel | 900 apartments units)
PROPOSED
Qualcomm Stadium Redevelopment (mixed-use) 4835 Glasoe Lane (retail & office)
RETAIL AMENITY
7
M A J O R P R O J EC TS D R I V I N G T H E E VO LU T I O N O F M I S S I O N VA L L E Y
C I V I T A M A S T E R P L A N N E D D E V E L O P M E N T
Developer Sudberry Properties
Site Area 230 acres
No. of Projects 15 (residential & commercial)
Estimated Cost $2+ Billion
Initial Start Date 2010
Expected Completion 2020-2025
• 4,870 residential units (single family homes, condos, apartments, and affordable housing)
• 480,000 SF retail center• 420,000 SF for a potential office/business campus• Public Parks • Civic Center with amphitheater • Recreation Center • Accommodating nearly 15,000 new residents, nearly doubling the current
population
R I V E R W A L K G O L F C L U B D E V E L O P M E N T
Developer Hines & Levi-Cushman Family
Site Area 200 acres
Estimated Cost TBD
Initial Start Date TBD
Expected Completion TBD
• Ideas being considered include 4,000 residential units and 1 million SF office buildings, 100k SF retail space and a 75-acre park
• Initial plan includes building a new trolley stop in the development• Ultimate plan is now in the works and will need approval by the City
Council
8
Q U A L C O M M S T A D I U M S I T E
Developer TBD
Site Area 166 acres
Expected Start / Completion TBD
P R O P O S A L 1 : M I X E D U S E U N I V E R S I T Y S I T E
• Development Team: JMI Realty, SDSU and UCSD
• Replacing the stadium with student/faculty housing and research/academic space
• 35,000 seat stadium • Potential hotel & commercial
space
P R O P O S A L 2 : M A J O R L E A G U E S O C C E R S T A D I U M ( S O C C E R C I T Y )
• Developer: FS Investors • $200M soccer stadium part of a
total $1B redevelopment • Stadium facility containing
20,000 to 30,000 seats • Projected to open 2020• Home to a MLS team as well as
SDSU football and soccer • 4,800 homes, 55 acres of parks• 3 million SF of commercial
U N I O N T R I B U N E P R O J E C T A M P & R S A N D
Developer Casey Brown Company
Site Area 13 acres
Estimated Cost $35 Million
Initial Start Date 2016
Start Date 2017
Expected Completion 2019
• Two building, 330,000 SF office campus • Estimated asking rents in the high $3.00 +E range • Industrial loft-style feel, exposed brick, concrete-pillars,
13-foot ceilings and oversized windows• 64,000 SF of outdoor collaborative space • On-site amphitheater • Abundance of on-site amenities: fitness studio, spa-like lockers, café,
valet, bike center
9
M I S S I O N V A L L E Y ’ S M O S T W A L K A B L E , A M E N I T Y - R I C H L O C A T I O N
Rio 9095 benefits from a strong array of local amenities including walkable access to Rio Vista Shopping Center and Fenton Marketplace which include retail and service amenities. The Property also includes walkable access to two different trolley stations, three different bus stops and routes to nearby Westfield Mission Valley and Fashion Valley shopping centers.
2 3 3 , 9 3 1 F U L L T I M E
P O P U L A T I O N
1 6 3 , 8 4 8 D A Y T I M E
P O P U L A T I O N
8 . 8 4 % P O P U L A T I O N G R O W T H S I N C E
2 0 1 0
3 M
ILE
RA
DIU
S
M I S S I O N V A L L E Y S N A P S H O T
1 0 . 7 K R E S I D E N T I A L
U N I T S
D R I V E T I M E S T O / F R O M R E S I D E N T I A L N O D E S
DOWNTOWN NORTH BEACH CITIES
CARMEL VALLEY RANCHO SANTA FE15 CORRIDOR
10 minutes 21 minutes16 minutes 26 minutes20 minutes
EAST COUNTY
13 minutes
6 M S F R E T A I L
7 K H O T E L R O O M S
2 0 0R E S T A U R A N T S
1 2 T R O L L E Y S T O P S
P O P U L A T I O N I S E X P E C T E D T O G R O W B Y 5 %
O V E R T H E N E X T 5 Y E A R S !
8 CAMINO DEL RIO N
CAMINO DEL RIO S
10
8
QUALCOMM WAY RIVER COLONY, 300 CONDOS
CAMINO DE LA REINA
CAMINO DEL ESTE
FRIARS RD
163
163
CIRCA37, 306 APTS
WEST PARK, 612 APTS VERSA AT CIVITA, 150 APTS
AQUATERA, 254 APTS
WESTFIELD MISSION VALLEY1.6 million sf retail with 131 stores &
services
FOOD COURT28 RESTAURANT
OPTIONS
HOME
MISSION WALK, 56 CONDOS
THE PROMENADE, 970 APTS
LUCENT I, 30 APTS
THE LIDO, 220 APTS
PARK VILLAS SOUTH, 250 CONDOS
PARK VILLAS NORTH, 296 CONDOS
MISSIONS AT RIO VISTA, 464 CONDOS
SAN DIEGO RIVER
HAZARD CENTER
RIVER FRONT CONDOS
805
LIGH
T RA
IL
RIO VISTA TROLLEY STATION
MISSION VALLEY CENTER STATION
HAZARD CENTER STATION
FASHION VALLEY1.8 MILLION SF RETAIL
CIVITA DEVELOPMENT400,000 SF office space
480,000 SF retail600 single family homes3,900 apartments units
RIO SAN DIEGO RD
11
4350 La Jolla Village Drive | Ste. 450San Diego, CA 92122 | hfflp.com 858.552.7690 858.552.7695
© 2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are pro-jections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
N I C K P SY L LO SSenior Managing [email protected]. License #00788060
N I C K F R A S C OSenior [email protected]. License #01819400
K A R A M AT H I S , C FASenior Associate [email protected]. License #01924947
I N V E ST M E N T A DV I S O R S
TAY LO R B E R GT H O L DReal Estate Analyst [email protected]. License #02014647
PAT R I C K B U R G E RSenior [email protected]. License #01820848
Z AC K H O L D E R M A NSenior [email protected]. License #01434957
D E BT A DV I S O R S
M I C H A E L L EG G E T TSenior Managing [email protected]. License #01056334
R I C H A R D G O N O [email protected]. License #01240176
TO N Y R U S S E L [email protected]. License #01275372
L E A S I N G A DV I S O R S
B R A N DT R I E D M A [email protected]. License #01931435
Top Related