INVESTOR OR OWNER/USER OFFICE FOR SALE

1© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.

418 N Fair Oaks AvenuePasadena, CA 91103

Confidential offering memorandum

INVESTOR OR OWNER/USER OFFICE

FOR SALE


Property overview 03

Location overview 10

Financial overview 15


418 N Fair Oaks Avenue


418 N Fair Oaks Avenue | Pasadena, CA

EXECUTIVE SUMMARYJLL is pleased to present the opportunity to acquire 418 N Fair Oaks Avenue, Pasadena, CA 91103 (the “Building” or “Property”) as an Investor and/or Owner-User. The Property is a 13,745 square foot 3-story office building located just north of Old Town Pasadena and within walking distance to all of Colorado Boulevard’s retail and entertainment amenities as well as the Gold Line Metro. Situated one block north of the 210 freeway and one block east of the 134 freeway, the Property provides very efficient ingress and egress and high visibility. This Property is ideal for a short or long-term investor, a boutique professional services company, law firm and/or medical practice looking for a well-kept, easily accessible building located just outside the heart of Pasadena. The current Tenant’s rent is 20-30% below market, which offers ample opportunity to drive additional value upon Tenant’s termination. The market rate for the Building is estimated to be $3.40 - $3.50 per square foot with 3.0% annual increases.

418 N Fair Oaks presents a one-of-a-kind opportunity. Although the Building is currently 73% occupied, the Buyer has the flexibility to purchase under the following scenarios:

• Scenario #1 - Vacant / Owner-User Purchase

• Scenario #2 – Investor and Owner/User Purchase• Downsize and/or relocate existing Tenant to 2,500 – 8,745 rsf on any floor(s)• Occupy the remaining 2,500 – 11,245 rsf on any floor(s)

• Scenario #3 – As-Is Purchase (73% Occupied)• Keep existing Lease in place and collect a monthly rental income of $25,726.95• Occupy or lease the 1st Floor (3,715 rsf) at market rents

LEASE SUMMARYTenant eCivis, a subsidiary of publicly-traded GTY Holdings Inc (NASDAQ: GTYH)Lease Type Full Service GrossPremises 10,030 RSF on the 2nd and 3rd floorsTenant’s Pro Rata Share 72.97%Expiration Date May 31, 2022Monthly Rent per RSF $2.565Annual Increases N/A Landlord Termination or Relocation

Current Building owner can terminate the existing Lease or downsize the Tenant with sufficient notice.

Comments Tenant’s rent is below market, because it was a non-arms length transaction. Also, Tenant has flexible space needs.

OPPORTUNITY

2© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. JLL makes no representations or warranties.


Address 418 N Fair Oaks Avenue, Pasadena, CA 91103

Rentable Building Area 13,745 square feet

Type Class B Office

Stories 3 Stories

Average Floor Size ±4,582 rentable square feet

Year Built 2006

Construction Masonry / Art Deco

Elevators One hydroelectric powered, stainless steel elevator rated for 2,500 pounds.

Parking Gated lot with 47 subterranean and surface spaces (Ratio of 3.3 per 1,000 square feet)

Lot Size ±0.34 acres (±14,898 square feet)

Zoning FGSP-C-3B (Fair Oaks / Orange Grove Specific Plan – Renaissance Commercial District)

Permitted Land UseCommercial use including professional and medical offices, retail, personal services, restaurants, small-scale light industrial, as well as mixed-use (residential with ground floor non-residential use).

APN 5725-003-0024

Accessibility Excellent ingress and egress from the I-210 and 134 Freeways

Frontage ±75’ along N Fair Oaks Avenue

BUILDING SPECIFICATIONS

Property overview

PRICE

Price $7,353,575 ($535 per square foot)

This Art Deco-style Building is a truly unique asset with distinctive interior and exterior details. Building amenities include secured surface and subterranean parking, custom exterior light fixtures, stainless steel elevator cab with intricate tile flooring, marble bathrooms with sensor bathroom appliances, hi-tech surveillance monitoring system, balconies, and bold stainless-steel finishes.


418 N Fair Oaks Avenue | Pasadena, CAProperty images






418 N Fair Oaks Avenue | Pasadena, CAFloor Plans


418 N Fair Oaks Avenue | Pasadena, CAFloor Plans


418 N Fair Oaks Avenue | Pasadena, CAParcel map


Pasadena



Amenities within walking distance

Orange Grove Ave

Fair Oaks Ave

Del Mar Blvd

El Molino Ave

Los Robles Ave

418 N Fair Oaks

Walnut St

Colorado Blvd

Marengo Ave

Old Town Pasadena

Paseo

The Rose Bowl



Neighboring Companies

E Colorado Blvd

Fair Oaks Ave

Lake Ave

Los Robles Ave

California Blvd

418 N Fair Oaks Ave



City of Pasadena

$120,9622018 Average

Household Income

41,550Millennial Labor

Pool

39 yearsMedian Age

149,6792018 Total Population

Pasadena stands as one of Los Angeles’ oldest and strongest neighborhoods. Well known for its art, culture and historical landmarks, the city offers an abundance of retail, dining, nightlife, hotel, and recreational options. Pasadena is globally recognized as the home of both the Tournament of Roses Parade and the Rose Bowl.

Since 1890, The Tournament of Roses has produced America’s New Year Celebration by kicking off New Year’s Day with an elaborate parade down Colorado Blvd, featuring over 40 floats completely made from flowers and greenery, plus 20 equestrian units, 400 horses, and 20 marching bands.

The Rose Bowl has hosted countless concerts and sporting events including the annual College Football Rose Bowl game, FIFA World Cup, and UCLA Football, not to mention the more local-specific events including the Pasadena Flea Market and Food Truck Festivals.

Pasadena is a prominent research, technology, engineering, education, and healthcare hub in Greater Los Angeles. In 2018, the City won the “Top Ten Digital City Award” for the fourth time amongst cities with a population between 125,000 –249,999 residents.

Home to the California Institute of Technology (CalTech), Pasadena boasts a highly educated work force from which companies including NASA’s Jet Propulsion Laboratory (JPL), Huntington Medical Research Institute, and Idealab are able to recruit. Other notable companies within Pasadena include Parsons Corporation, Kaiser Permanente, and financial companies such as Bank of America, East West Bancorp, OneWest Bank, and Western Asset Management Company.



Pasadena office market

$3.69Average Monthly Rental

Rate per RSF

6,272,988 SFClass A & B Office

Inventory

13.1%Direct Vacancy

Rate

219,000 SFUnder

Construction

418 N Fair Oaks Avenue is located within the Tri-Cities office submarket of the Greater Los Angeles market, consisting of Pasadena, Glendale, and Burbank. The submarket’s more affordable asking rental rates (compared to that of the Westside and Downtown Los Angeles submarkets), coupled with its well-educated population, has proven to be very attractive to some of the country’s top employers.

2018 was one of the most prolific years in terms of office investments in Pasadena’s history, with more than $800 million in total sales volume. The most noteworthy sale was Coretrust Capital Partners' acquisition of the Pasadena Corporate Center, a 640,000 square foot, 4-building office campus from UBS Realty for $254 million. Another notable transaction was ACCO Engineered System’s purchase of 888 Walnut Street, a 235,000 square foot office building for $112 million.

In addition to the abundance of amenities and direct access to major cities, Pasadena is considered appealing for its pro-business tax environment. Pasadena does not have a Gross Receipt Tax, which provides an opportunity for tax savings that businesses couldn’t achieve in other cities in the Greater Los Angeles area. Additionally, the City also does not have business, parking, or utility taxes.

While rent growth has slowed recently, mirroring a general trend being experienced across the Greater Los Angeles Metro area, Pasadena has remained one of the strongest office submarkets in the Tri-Cities submarket. Supply constraints continue to be a contributing factor to the strength of Pasadena’s office market, with only about 400,000 square feet of new product having been delivered in the last 10 years.

In 2021, Lincoln Property Company will deliver a ±1,000,000 square feet mixed-use development featuring 400 residential units, 17,500 square feet of ground-floor retail, ±220,000 square feet of creative office space (“10 West”), and subterranean parking.

Although an initial spike in vacancy is expected once 10 West delivers, the new supply is expected to be quickly absorbed, with vacancy rates expected to stabilize within three years. Overall, the vacancy rate has been slowly trending downward toward the historical average, further solidifying the strength of the submarket.


Financials


418 N Fair Oaks Avenue | Pasadena, CAFinancial overview

2018 Maintenance

Electrical and light fixtures $ 156.00

Cleaning $ 15,485.00

Fire Equipment Services $ 1,105.00

Gardening & Landscape $ 2,775.00

Elevator $ 1,440.00

HVAC $ 2,184.03

Pest Control $ 682.00

Plumbing $ 5,635.00

TOTAL MAINTENANCE $ 29,462.03

2018 Utilities

Gas & Electric $ 3,169.95

Waste Disposal $ 1,745.04

Utilities - Other $ 6,875.25

TOTAL UTILITIES $ 11,790.24

ContactsScott Becket

Executive Vice President+1 310 595 [email protected]

Ali De Oca

Associate+1 310 595 [email protected]

Christian Kasparian

Senior Associate+1 213 239 [email protected]

Documents

INVESTOR OR OWNER/USER OFFICE FOR SALE