Single Tenant Industrial / Food Investment Opportunity 1 4 0 7 TR … · 2013-04-30 · Single Tenant Industrial / Food Investment Opportunity 1 4 0 7 TR U M A N STR EET, SA N FER

Single Tenant Industrial / Food Investment Opportunity1407 TRUMAN STREET, SAN FERNANDO, CA

©2011, CB Richard Ellis, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

BLDG: 16,971 SFLOT: 35,935 SF

For more information, contact:

David HardingLic. 01049696T [email protected]/david.harding

Greg GeraciLic. 01004871T [email protected]/greg.geraci

Matt DierckmanLic. 01301723T [email protected]/matt.dierckman

Billy WalkLic. 01398310T [email protected]/william.walk

CB Richard Ellis Broker Lic. 00409987111 Universal Hollywood Drive27th FloorUniversal City, CA, 91608T 818.502.6700F 818.502.6798

www.cbre.com/lanorth

OVERVIEW PROPERTY SUMMARY LOCATION VALUATION CONTACT PRINT EXITLEASE vs OWNOVERVIEW

Property Features:• Excellent Freezer / Cooler Space

• 7,000 Square Foot Freezer / 550 Square Foot Cooler

• Newer Building with Excellent Ceiling Clearance

• Truck-High and Ground-Level Loading

• High Image Property with City of San Fernando Benefits

• Building Size – 16,971 SF | Lot Size – 35,935 SF

1407 TRUMAN ST, SAN FERNANDO OFFERING PRICE: $3,475,000.00

NEWER CONSTRUCTION HIGH IMAGE CLASS A COLD STORAGE IN-FILL LOCATION IN SAN FERNANDO VALLEY, CA

UNIQUE PURCHASE OPPORTUNITY

TRUMAN STREET

1407 T R U MA N S T R E E T | S A N F E R N A N D O, C A

• 16,971 Square Feet• Class A Building• Strategic Location• 32’ Clear Height• Cold and Dry Storage•USDA / FDA Approved

Food Preparation• 100% Leased to Global

Food Products Company•Dock High and Grade

Level Concrete Yard• Corner Lot with TrafficSignal

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$3,575,000

WORKMAN STREET

II 1407 TRUMAN STREET SAN FERNANDO, CA

Executive Summary

INVESTMENT HIGHLIGHTS

CBRE is pleased to present the opportunity to acquire a Class A, 16,971 square foot freezer/

cooler/dry storage building located at 1407 Truman Street in the Northeast San Fernando

Valley with immediate access to major freeways including the 5, 118, 210 and 405.

• High Quality Freezer/Cooler Facility – The Class A, 16,971 square foot facility

features excellent freezer/cooler space (7,000 SF freezer / 550 SF cooler), high clearance

(32’warehouse / 30’ cooler), newer construction and dock high and grade level loading.

• Opportunity to Increase Returns Through Cost Segregation - Due to the property’s

extensive cold storage improvements (45% of the building), there is a tremendous opportunity

to accelerate depreciation through cost segregation and dramatically increase the after-tax

cashflowandcapitalizedreturn.

• Strong Market Dynamics – This is a rare opportunity to acquire an industrial property in

thestableSanFernandoValley,apremier“in-fill”SouthernCaliforniasubmarketknown

for low vacancy rates and commanding high lease rates. The East San Fernando Valley

industrialmarkethasavacancyrateofjust0.7%asoftheendofthefirstquarter2013,

while the greater San Fernando Valley has a very low vacancy rate of just 1.5%. The San

Fernando Valley market has experienced positive net absorption in 10 of the last 11 quarters,

and with a lack of available land and steady demand, the area is poised for strong rental

growth.

Southern California cold storage warehouse space has consistently been in high demand

due to increasing population growth and consumer preference towards prepared foods,

fresh and frozen. Because of the significant and increasing costs of construction and virtually

no speculative market, cold storage warehouse vacancy in Southern California is estimated

at less than 3%. In addition, older, functionally obsolete and mechanically inefficient cold

storage properties are in need of repair and replacement. With very limited availability

and the high cost of construction, lease rates for cold storage space continue to increase

and remain strong. For these reasons, modern, highly functional, well-located cold storage

distribution facilities such as the subject property will remain in high demand.

INVESTMENT SUMMARY

FOOD INDUSTRY COLD STORAGE DEMAND

Asking Price $3,575,000

In-Place Cap Rate 6.13%

10 Year IRR (All Cash) 9.20%

10 Year IRR (Leveraged) 13.60%

NOI $219,228

Increases Annual CPI (with 5% cap)

Lease Term Expires June 30, 2016(Lease term was extended April 2013)

Guarantor Ferrarini SPA (Parma, Italy)

Tenant

Ferrarini, USA is a subsidiary of Ferrarini SPA in Parma, Italy. Ferrarini USA is an importer of fine Italian

food products such as cured meats, cheese, butter, balsamic vinegar and wine.

IIIIII

1407 Truman StreetSan Fernando, California

Location

Address 1407 Truman StreetSan Fernando, CA

Tenant Ferrarini USA

Occupancy 100%

Industrial Market San Fernando Valley

Industrial Submarket San Fernando

Parcel Number 2521-001-006

Building SizeTotal Rentable Area 16,971 SF

Land Size 0.82 Acres

Coverage 47%

Total Office SF / % 1,000 SF / 5.9%

Freezer/Cooler SF 7,000 Square Foot Freezer / 550 Square Foot Cooler

Number of Buildings 1

Building FeaturesYear Built 1996

Clear Height 32’ Warehouse / 30’ Cooler

Truck Court Depth +/- 115’ (Private)

Car Parking 20 Spaces

Dock High Doors 2 (10’x10’) and 2 (10’ x 10’) Future Doors

Ground Level Doors 1 (10’x12’) via Ramp

Zoning SFM2

Construction OverviewConstruction Type Concrete tilt-up

Roof Laminated/GLU Wood Beam

Sprinklers Yes

Electrical 800 Amps / 480 Volts / 3 Phase / 4 Wire

HVAC Office Areas

Industrial For Lease & Sale

Lease Rate/SF: $1.25 Taxes:Lease Rate/Mo: $21,214Lease Type:

$24,152, 2013Net Terms: 5-10 Years Possession 07/01/2013

1407 Truman St, San Fernando, CA 91340

*Excellent Freezer/Cooler Space**8,450 Dry Storage/7,000 SF Freezer/550 SF Cooler*

*Impressive 30'-32' Clearance Height/Newer Building**Truck High And Ground Level Loading*

*High Image Property/City of San Fernando Benefits*

16,971Available SF: Total Building SF: 16,971

CBRE-Universal City (818) 502-6700David Harding (818) 502-6731, William Walk (818) 502-6733, Arthur Rasmussen (310) 550-2564, Greg Geraci (818)502-6741

To Show: Call AgentListing Company:Agents:

$204.76Price/SF: $3,475,000Sale Price:Available SF:

A:

Dock High: Office SF / #:Ground Level Drs:

V:

Parking:Minimum SF:

Sprinklered:

Ø:

Yard:

Lot Size:

Clear Height:W:

Thomas Guide:

16,971

800

2

Ratio: 1.2:1 / Spaces: 20

1 1,000 / TBD

32480/480 3

Yes - Fenced/PavedYes

16,971

35,935 SF / 0.82 AC482-A7

4

Const Status/Yr Blt: Existing/1996 Construction Type: Tilt-upRegion: LA Northwest Specific Use: Warehouse -Zoning: SFM2 APN #: 2521-001-006

Finished Ofc Mezz: NoInclude In Avail: No

Unfinished Mezz:Include In Avail:

NoNo

Rail Service: Heat/Cool:No Unknown

Office Air: Yes Office Heat: Yes

Roof Type: Laminated/GLU Wood Beam

Restrooms: 2

Notes: Additional DH doors possible with 2 pop outs. Special Features: Paved Yard, Free Standing Building, Freezer, Cooler.

S. Workman St/Truman StCross Streets:Address:

Property/Listing/Ste #: 955962/813845/1449701 Listing Date: 01/28/2013 FTCF: CB250N000S250/AOAA

This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified itand make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy.



BLDG: 16,971 SFLOT: 35,935 SF








OVERVIEW PROPERTY SUMMARY LOCATION VALUATION CONTACT PRINT EXITLEASE vs OWNOVERVIEW

Property Features:• Excellent Freezer / Cooler Space

• 7,000 Square Foot Freezer / 550 Square Foot Cooler

• Newer Building with Excellent Ceiling Clearance

• Truck-High and Ground-Level Loading

• High Image Property with City of San Fernando Benefits

• Building Size – 16,971 SF | Lot Size – 35,935 SF

1407 TRUMAN ST, SAN FERNANDO OFFERING PRICE: $3,475,000.00

IV 1407 TRUMAN STREET SAN FERNANDO, CA

Executive Summary

SITE PLAN

Drive-in Door

Dock Door

TRUMAN STREET

WO

RKM

AN S

TREE

T

1407 Truman16,971 SF

LoadingRamp

Equip/Mech

Ramp

Office

Gate

Gat

e

VV

1407 Truman StreetSan Fernando, California



BLDG: 16,971 SFLOT: 35,935 SF








OVERVIEW PROPERTY SUMMARY LOCATION VALUATION CONTACT PRINT EXITLEASE vs OWNLOCATIONMAP

VI 1407 TRUMAN STREET SAN FERNANDO, CA

Executive Summary

The site is located in the heart of the San Fernando Valley, one of the most

populous areas in Southern California with 1.8 million residents, almost the size

of the Houston MSA, making it the nation’s sixth-largest municipality. Covering

over 365 square miles of Los Angeles County, the Greater San Fernando Valley

isdefinedbySantaClaritatothenorth,Venturatothewest,theSantaMonica

and Hollywood mountains to the south and Pasadena and Angeles National

Forest to the east. Centralized location, close proximity to high-end residential

communities and availability of both high skilled and unskilled labor will continue

to contribute to future growth and development.

The Valley provides employers with a strong labor pool of both highly skilled and

affordable work force. The area also draws employees from the surrounding

Antelope, Santa Clarita and Simi Valleys. The Valley’s employment base is surging

with commercial vacancy rates down in the single digits, and property values rising.

One of the most important elements in the Valley is its transportation infrastructure.

The Valley has approximately 75 miles of freeways including the 5, 405, 170, 134,

210, 118, and 23. The San Fernando Valley is also serviced by a Metrolink train

service, the Metro Redline Subway, and the recently completed Metro Orange Line.

These arteries of commerce connect retail businesses, consumers, manufacturers

and service providers to one another, as well as providing links from the Valley

to the rest of Southern California.

SAN FERNANDO VALLEY AREA AND MARKET OVERVIEWThe San Fernando Valley industrial market has some of the strongest dynamics in the

Los Angeles Basin. The overall industrial base for the Greater San Fernando Valley

is approximately 172 million square feet, and consists of the San Fernando Valley,

the Santa Clarita Valley, and the Antelope Valley. The vacancy rate has decreased

to 1.5% in the 1st quarter of 2013 (down 70 basis points year-over-year), which

shows signs of a tempered recovery in one of the strongest markets in Southern

California. Average asking lease rates Valley wide are $0.67 per square foot net

per month (compared to $0.55 in Greater Los Angeles). The availability rate is

only 7.1%. With an increase in demand from users in all size ranges, and with the

vast majority (over 70%) of existing product being functionally obsolete due to low

clear height and poor trucking logistics, the Greater San Fernando Valley vacancy

is slowly stabilizing. As demand increases, vacancy is expected to experience more

downward pressure due to the lack of available land for future development.

There are many factors that continue to contribute to the sustained economic growth

of the stable and consistent Greater San Fernando Valley market:

•Densedemographicswithnearly1.8millionresidentsandastronglaborpool

•Extremelylowvacancyrate(just1.5%)especiallyforClass“A”buildings

•Strongnetabsorption(10outofthepast11quartershaverecordedpositive

net absorption)

•Virtuallynoavailablelandfordevelopmentandlimitednewconstruction

•ExcellentfreewayaccesstomultiplemajorinterstatesandservicedbyBobHope

Airport in Burbank

•Sale/Useractivitystronghowever,extremelackofproduct

© 2013 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. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

CAPITAL MARKETS EXPERT

Barbara EmmonsVice ChairmanLic. 00969169T. +1 213 613 [email protected] S. Grand Ave., 12th FloorLos Angeles, CA 90071

CAPITAL MARKETS I PRIVATE CAPITAL GROUP

Mike KendallSenior Vice PresidentLic. 01895979T. +1 909 418 [email protected] Inland Empire Blvd, Suite 100Ontario, CA 91764

LOCAL MARKET EXPERTS

David M. HardingSenior Vice PresidentLic. 01049696T. +1 818 502 [email protected] Universal Hollywood Drive, 27th FloorUniversal City, CA 91608

Greg GeraciSenior Vice PresidentLic. 01004871T. +1 818 502 [email protected] Universal Hollywood Drive, 27th FloorUniversal City, CA 91608

COLD STORAGE EXPERT

Art RasmussenSenior Vice PresidentLic. 00918691T. +1 310 550 [email protected] Century Park East, Suite 700Los Angeles, CA 90067

Documents

Single Tenant Industrial / Food Investment Opportunity 1 4 0 7 TR … · 2013-04-30 · Single Tenant Industrial / Food Investment Opportunity 1 4 0 7 TR U M A N STR EET, SA N FER