Embed Size (px)
Citation preview
Institutional-Quality / 179,980 SF / 2-Building Class A Office Campus CAPITAL MARKETS / INSTITUTIONAL PROPERTIES October 2015
100% Leased, Core Investment Opportunity WESTLAKE VILLAGE, CALIFORNIA
02
Lake
Lindero
Westlake Village
Marketplace
RUSSELL RANCH RD
LINDERO CYN RD
CBRE, as exclusive advisor, is pleased to present the opportunity to
acquire the fee simple interest in Westlake Landmark (the “Property”),
an institutionally-owned, office campus with 54% of the Property
leased to investment grade tenants. The Property offers investors an
exceptionally high-quality, low-risk investment opportunity.
30870
N
30930
Westlake Landmark consists of two, Class A, three-story office buildings totaling 179,980 square feet, located in prestigious Westlake Village, California. The multi-tenant campus is 100% occupied by seven tenants with 6.2 years of average remaining lease term.
Built in 2006, the trophy-quality buildings are located on a 12-acre site, perched prominently above the Ventura (101) Freeway. The Property provides exceptional mountain views from its expansive window line on each floor and offers an abundant 4.26/1,000 square foot parking ratio.
Westlake Village is widely acclaimed to be among the finest residential and commercial communities in Southern California. Westlake Village and its surrounding cities offer one of the nation’s strongest labor pools with an extremely diverse, well-educated and wealthy population base. The area provides a wide range of affluent communities and contains some of Los Angeles’ most prestigious schools, country clubs and Fortune 1000 headquarters.
P R O P E R T Y S U M M A R Y
Property Address:30870 & 30930 Russell Ranch Road, Westlake Village, CA 91362
Total Building Area 179,980 RSF
Number of Buildings Two
Site Area 12.0 acres
Occupancy 100%
Year Constructed 2006
Surface Parking Ratio 4.26/1,000 RSF
Slab-to-Slab Height 13’6”
Ceiling Height 9’ minimum
Number of Tenants 7
CURRENTLY:
100 PERCENT OCCUPIED BY 7 TENANTS WITH
6.2 YEARSOF AVERAGE REMAINING LEASE TERM
PREMIUM QUALITY, CORE INVESTMENT
• Institutional-quality, Class A office project
• Strong, diverse and investment quality tenant roster including General Motors, McGraw Hilll, Urban Fulfillment, and Kythera (Allergan)
• In-place rents are approximately 17% below market
• Stable cash flow backed by a diverse tenant roster
• Limited near-term rollover
• Institutionally built, owned and maintained
• Recently renovated exteriors and lobbies
• New collaborative outdoor areas and an onsite fitness center
• Lack of comparable-quality investments in coastal market locations
• Significant discount to replacement cost
• Severely supply constrained market with no existing sites entitled for office development
I N V E S T M E N T H I G H L I G H T S
CURRENTLY:
100 PERCENT LEASED
54 PERCENT INVESTMENT GRADE TENANTS
OVER 6.2 YEARS AVERAGE REMAINING LEASE TERM
WESTLAKE LANDMARK’S QUALITY AND
LOCATION WILL ACHIEVE A 28% PREMIUM OVER
CLASS A CONEJO VALLEY MARKET RENTS
M A J O R T E N A N T S U M M A R Y
Tenant Symbol Leased SF % of Property
Lease Expiration
CreditRating
Urban Fulfillment 75,123 42% 4/30/2024
McGraw Hill (J.D. Power) MHFI(NYSE) 40,553 23% 6/30/2023 Baa1
Kythera (Allergan) (NYSE: AGN) * 33,198 18% 7/31/2017 BBB- (AGN)
General Motors GM (NYSE) 23,965 13% 5/31/2020 BBB-
*Allergan acquired Kythera on October 1, 2015 for $2.1 Billion. Kythera acts as an operating subsidiarity of Allergan.
Since July 2014,
Westlake Landmark
went from 100%
vacant (after Bank
of America vacated)
to 100% leased, in
7 short months,
absorbing its entire
179,980 square feet.
FINAL DD | 03/17/15 | 11
WESTLAKE BREAKROOM RENDERING
J.D. Power Suite Rendering- under construction
BEST-IN-CLASS LOCATION
• Exceptional 101 (Ventura) Freeway access, visibility and tenant identity
• Proximate to abundant executive and workforce housing
• Located across from Four Seasons Hotel
• Great amenities adjacent to the Property, including newly opened Shoppes at Westlake Village Westlake Village Marketplace and Marriott Residence Inn
• No Gross Receipts Tax, providing significant competitive advantage over surrounding City of Los Angeles markets including Warner Center
• Virtually no Class A quality alternative locations for project’s key tenants
OUTSTANDING OFFICE MARKET FUNDAMENTALS
• 1.83 million square foot Class A market with 6.2% vacancy
• Strong barriers-to-entry market
• Over 470,000 SF of Class A absorption since 2011 – 26% of entire Class A inventory
• Limited options for larger, Class A tenants – only 4 projects in entire Conejo Valley can accommodate tenants larger than 30,000 SF
WESTLAKE VILLAGE
CONSISTENTLY
OUTPERFORMS
THE CONEJO VALLEY,
SAN FERNADO
VALLEY AND
VENTURA IN RENTS
AND OCCUPANCY
THE CONEJO AND SAN FERNANDO
VALLEYS ARE HOME TO NINE
FORTUNE 1000 COMPANIES, AND ARE
REGARDED AS ONE OF THE STRONGEST
BIOTECHNOLGY HUBS IN THE NATION.
O F F I C E M A R K E T O V E R V I E W ( 3 Q 1 5 )
C L A S S A VA C A N C Y C O M P A R I S O N
Westlake Village Conejo Valley Greater Los Angeles
TOTAL CLASS A INVENTORY (RSF) 1,829,877 3,248,595 147,951,145
# OF BUILDINGS 19 38 791
CLASS A DIRECT VACANCY 6.2% 13.1% 14.9%
AVG. CLASS A RENTS (FSG) $2.67 $2.50 $3.20
CLASS A NET ABSORPTION SINCE 2011 469,524 712,952 5,292,457
% OF TOTAL CLASS A INVENTORY 25.7% 21.9% 3.6%
• As of the third quarter 2015, the average asking rental rate for Class A space in the Westlake Village was $2.67/psf/mo.
• Westlake Landmark, due to its superior quality, location and identity, will achieve a 28% market rent premium over the greater Westlake Village Class A market.
• The Westlake Village submarket captured 66% of the overall net absorption across the entire Conjeo Valley since 2011.
• Consistently, Westlake Village outperforms the Greater Conejo Valley and Ventura markets in both rents and occupancy and currently realizes a 11% premium in Class A rents.
• Over the last 10 years, Westlake Village has maintained an average occupancy of 90%.
• Westlake Village’s 6.2% Class A vacancy is outperforming Santa Monica, West LA, Westwood, Brentwood, Century City and Beverly Hills.
OFFICE MARKET HIGHLIGHTS
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%1Q03 3Q03 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15
Westlake Village Class A Vacancy
Source: CBRE Research
Conejo Valley Class A Vacancy Greater Los Angeles Class A Vacancy
OUTSTANDING DEMOGRAPHICSThere are over 540,000 people that reside within Westlake Village, Thousand Oaks, Agoura Hills, Camarillo, Moorpark, and Calabasas with an average household income of over $122,000 (almost 28% higher than West Los Angeles). With the average home value 24% lower than West Los Angeles, the comparative cost of living in Westlake Village and neighboring communities provides more discretionary income for residents, bolstering the strength of the local retail market.
Westlake Village
Thousand Oaks
Agoura Hills
Ventura County
Los Angeles County
2015 Est. Average Household Income $129,117 $113,337 $124,785 $81,792 $63,763
2015 Est. Average Home Value $897,489 $731,392 $774,836 $483,124 $600,534
Residents With a Bachelor’s Degree Or Higher
56.8% 42.5% 53.7% 23.9% 25.8%
C O N E J O D E M O G R A P H I C S C O M P A R I S O N
Sherwood Country Club
WESTLAKE VILLAGE AND ITS SURROUNDING CITIES ARE
SOME OF THE SAFEST FAMILY ORIENTED COMMUNITIES
IN THE NATION, AND THE BASE OF SEVERAL THOUSAND
COMPANIES WHO PROVIDE MORE THAN 70,000 JOBS.
© 2015 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
2221 Rosecrans Avenue, Suite 100El Segundo, California 90245T +1 310 363 4900F +1 310 363 4912
Broker Lic. 00409987
PRIMARY INVESTMENT CONTACTS
LOCAL MARKET LEASING CONTACTS
VAL ACHTEMEIERExecutive Vice President+1 213 613 [email protected]
BRETT GREENVice President+1 213 613 3791Lic. [email protected]
KEVIN SHANNONVice Chairman/Managing Director+1 310 363 4910Lic. 00836549 [email protected]
KEN WHITEExecutive Vice President+1 310 363 4901Lic. [email protected]
MICHAEL LONGOVice President+1 310 363 4906Lic. [email protected]
BRAD BURTONSenior Vice President+1 310 363 4997Lic. [email protected]
JIM LINDVALLManaging Director, JLL+1 661 964 6210Lic. [email protected]
DAN SANCHEZExecutive Vice President, JLL+1 661 964 6211Lic. [email protected]
DEBT & STRUCTURED FINANCE CONTACTS
