Post on 13-Aug-2020
27611 La Paz & 27612 El LazoL A G U N A N I G U E L , C A L I F O R N I A
One of a Kind South Orange County Office Building - For Sale
Investment Properties-SoCal
Investment Overview 4
Investment Summary
Investment Highlights
Property Description 6
Property Details
Parcel Map
Site Plan
Floor Plans
Area Overview 14
City Overview
Local Map
County Overview
Regional Map
Financials 22
Rent Roll
Replacement Cost
Table of Contents
www.ipsocal.com/27611lapazFor more information on 27611 La Paz & 27612 El Lazo, please visit our website at
Exclusive Agents
Gary Stache
Lic. 00773736 | 949.725.8532
gary.stache@cbre.com
Anthony DeLorenzo
Lic. 01706686 | 949.725.8425
anthony.delorenzo@cbre.com
Pat Scruggs
Lic. 00851446 | 949.725.8520
pat.scruggs@cbre.com
Doug Mack
Lic. 01804065 | 949.725.8571
doug.mack@cbre.com
Mark Shaffer
Lic. 01253743 | 213.613.3758
mark.shaffer@cbre.com
Local Market Contacts
Keith Black
Lic. 01266477 | 949.725.8633
keith.black@cbre.com
Jeff Carr
Lic. 01009600 | 949.725.8631
jeff.carr@cbre.com
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27611 La Paz & 27612 El LazoL A G U N A N I G U E L , C A L I F O R N I A
Investment Overview
Investment Overview
Investment Properties-SoCal | 5
27611 La Paz Road & 27612 El Lazo Road Laguna Niguel, California
Investment Summary
Purchase Price $6,950,000
Price Per SF $183
Total Building Size 37,917 SF
Total Land Size 2.312 Acres
Property Website www.ipsocal.com/27611lapaz
Priced at $6,950,000 ($183 PSF),
significantly below the estimated
replacement cost of $9,099,986
($240 PSF).
Investment Highlights
ExcEptional HigH imagE ownEr/UsEr opportUnity
· One of the highest image buildings in South Orange County, with unique water features, interior rock and garden atrium oasis, people areas and wood highlighted balconies.
· An Owner/User has the opportunity to occupy up to 13,745 SF today and up to 20,291 SF in early 2015.
· Now is the time to take advantage of the market and protect your business from future rental market spikes. Rather than paying rent to a landlord or investing your money in an alternative investment, your rent will pay off the property mortgage and provide a more attractive after-tax return. An Owner/User will save 134% compared to leasing, with an after-tax equity build-up of $3.09 million over a 10 year period.
· Approximately half of the property is commercial, which is in high demand due to its location adjacent to all of the surrounding retail.
· Creative space with high ceilings and hardwood floors
· Flexible use property with multiple separate unique to the market access points
Dynamic soUtH orangE coUnty cornEr location
· Exceptional location with immediate access to the 73-Toll Road via the four way interchange at La Paz Road, providing easy access to Orange and San Diego County.
· One of the best office amenity locations in South Orange County. Within 2 miles of: 9 grocery stores, 115 restaurants, 16 banks, 20 health clubs, and 16 shopping centers
· La Paz is one of the market’s major thoroughfares
Area OverviewProperty Overview
Area Overview
Property Description
Investment Properties-SoCal | 7
Property Details
ADDRESS 27611 La Paz & 27612 El Lazo
CITy Laguna Niguel
STATE California
ZIP 92677
BUILDINg TyPE Office/Commercial
yEAR BUILT 1981
STORIES One/Two
LAND SIZE (ACRES) 2.312
BUILDINg SIZE (SF) Office - 18,994 SF Commercial - 18,923 SF Total - 37,917 SF
ExTERIOR WALLS Tilt-up concrete panels and glass curtain walls
FOUNDATION Poured concrete slabs on grade
ROOF Flat with rolled composition roofing
CLEAR HEIgHT 12’ - 14’
LOADINg DOORS Two (2) grade-level doors for the commercial area
CONFIgURATION The office component is housed in the two-story portion of the structure. This area features an attractive entry decorated with small waterfalls and ponds. The entry leads to a two-story atrium that incorporates the use of additional ponds and fountains, and is also landscaped. This area features a number of individual office suites on both floors. The smallest unit consists of an individual room, the larger units have bullpen areas as well as perimeter offices. A few offices have some wood paneling but most have standard gypsum walls. One office features small interior balcony that looks out over the atrium.
FLOORINg Largely carpet, some vinyl tile and ceramic tile
LIgHTINg Recessed florescent fixtures
RESTROOMS Five (5)
HVAC The units are heated and cooled by roof-mounted package HVAC units
PLUMBINg The plumbing system is reportedly adequate for the existing use
FIRE SPRINkLERS Fire sprinklers were observed in the office and commercial areas
ELECTRICAL SERVICE 600 - 1,200 amp service (based on prior appraisal - electrical rooms could not be inspected)
ELEVATOR None
PARkINg 111 surface spaces
First Floor Plan
Suite150
Suite160
Suite101
Suite1A-100
Floor Plans
8 | 27611 La Paz & 27612 El Lazo
AnareobicEsc
row
Sou
rce
AVAILABLE - 317 SF
InPro - Exp. 2/15 Suite 150: 5,074 SF Suite 160: 1,472 SF
total: 6,546 SF
anareobic - 12,377 SF - Exp. 2/17
Escrow Source - 5,249 SF - Exp. 3/17
Suite 100
Floor Plans
Second Floor Plan
Suite202
Suite208
Suite207
Suite206
Suite205
Suite
204
Suite203
Investment Properties-SoCal | 9
AVAILABLE - 13,428 SF
SubHeaderParcel Map
10 | 27611 La Paz & 27612 El Lazo
ALLE
GRA
RO
AD
LA PAZ ROAD
EL LAZO ROAD
AVIL
A RO
AD
27671 La Paz Road(NAP)
27631 - 27651 La Paz Road(NAP)
27632 El Lazo Road(NAP)
27612 El Lazo Road
27611 La Paz Road
Site Plan
Investment Properties-SoCal | 11
12 | 27611 La Paz & 27612 El Lazo
Investment Properties-SoCal | 13
Area OverviewArea Overview
Area Overview
Area Overview
City OverviewlagUna nIgUEl
Laguna Niguel is a master planned community
located in the coastal San Joaquin Hills of Southern
Orange County, California. Located halfway
between San Diego and Los Angeles, Laguna
Niguel encompasses 14.72 square miles and is
surrounded by the cities of Aliso Viejo, Dana Point,
Laguna Beach, Laguna Hills, Mission Viejo and San
Juan Capistrano.
Laguna Niguel Demographics:
2014 Estimated Population 65,048
2019 Projected Population 67,939
2010 Census Population 62,979
2000 Census Population 62,895
growth 2010-2014 3.28%
growth 2014-2019 4.44%
2014 Estimated Median Age 43.94
2014 Estimated Average Age 41.11
2014 Estimated Households 25,094
2019 Projected Households 26,306
2010 Census Households 24,233
2000 Census Households 23,667
growth 2010-2014 3.55%
growth 2014-2019 4.83%
Over one-third of Laguna Niguel is designated open space and
is one of the most characteristic features of the city and is unique
to Orange County. Laguna Niguel’s proximity to the coast makes
it a desirable place to live and visit. The majority of the homes
in Laguna Niguel are single-family with a median home price of
$622,919. Laguna Niguel is home to 33 city and county parks
connected by walking trails and neighborhoods that offer a variety
of recreational activities including fishing, hiking and biking.
Laguna Niguel Top Employers:
rank EmPloyEr # oF EmPloyEES
1 Costco 500
2 Walmart 280
3 Capistrano Unified School District 245
4 Albertsons 210
5 The Home Depot 200
6 County of Orange 180
7 First Team Real Estate 140
8 Calstar Properties 125
9 kohl’s 121
10 Pacific Line Clean Up 120
Investment Properties-SoCal | 15
CatalIna ISlanD
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la Paz road
avila
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aliso Creek road
alicia Parkway
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27611 La Paz & 27612 El LazoL A G U N A N I G U E L , C A L I F O R N I A
Investment Properties-SoCal | 17
Local Map
27611 La Paz & 27612 El LazoL A G U N A N I G U E L , C A L I F O R N I A
Area Overview
18 | 27611 La Paz & 27612 El Lazo
orangE CoUnty
Situated between Los Angeles and San Diego, in the heart of sunny Southern California is Orange County. Once an agricultural empire for citrus growing, Orange County now boasts a thriving economy, a sophisticated arts scene, and a community of high-powered movers and shakers. Occupying the sloping plains of the Santa Ana Range’s foothills to the Pacific Ocean, the area is blessed with brilliant weather, a low unemployment rate, and a rapidly growing job market. Thriving on immigrant dynamism coupled with a long-running technological explosion, this conglomeration of 34 cities has become an “international world trade center.” A third of the firms in Orange County deal internationally, and nearly half of the population is ethnically diverse. If Orange County were a country it would rank in the top 30 economies worldwide.
This 798 square mile landscape hosts dozens of urban pods, and post-industrial communities that include restaurants, businesses, galleries, and anything and everything a person might need. People average less than a half an hour drive to work, and dozens of quality hospitals, universities, and entertainment centers are equally close by. Anaheim is one of the largest of these pods, hosting some of the most famous theme-park attractions and professional sports teams like the NHL’s Mighty Ducks and Major League Baseball’s Anaheim Angels. Irvine is the home of the University of California campus, a multicultural populace, and its own John Wayne Airport, while Fullerton boasts Cal State Fullerton. Surfers make Huntington Beach their home, and Newport Beach attracts affluent individuals seeking elegant dining and the arts..The average household income of $97,734 in Orange County is significantly higher than the national average of $69,303 making it one of the wealthiest areas in the
United States. In addition to being one of the nation’s wealthiest counties, Places Rated Almanac has rated Orange County in the top places to live in the Nation.
The crime rate in Orange County is far below the national average, with few violent crimes occurring each year. Although a little over three million people live in Orange County, the residents are spread out among more than 30 cities. Part of the low crime rate results from poverty rates that are significantly lower than the national average. There are fewer children living in poverty in Orange County than most other California communities.
Orange County benefits from its up-to-date communications network as well as its modern transportation. Strong infrastructure contributes to Orange County’s successful and positive business climate. Orange County is served by a large freeway network with more than 15 major Interstates and State Routes which provides access to the four neighboring counties of Los Angeles, San Diego, Riverside and San Bernardino. Centrally located in Southern California, Orange County has easy access to the ports of Los Angeles and Long Beach, the two largest container ports in the world.
The addition of new toll roads in South County and improvements to the existing freeway system in Central County will continue to fuel the growth well into the 21st century. Orange County is home to one major commercial airport; John Wayne, originally known as the Orange County Airport. John Wayne Airport handles over 9 million passengers annually through 14 different airlines. In 2011, a nearly $550 million expansion was completed that brought six new gates and new parking facilities allowing 2,000 additional spaces to be added to the airport.
Orange County Demographics:
2014 Estimated Population 3,140,085
2019 Projected Population 3,302,477
2010 Census Population 3,010,232
2000 Census Population 2,846,342
growth 2010-2014 4.31%
growth 2014-2019 5.17%
2014 Estimated Median Age 36.99
2014 Estimated Average Age 37.86
2014 Estimated Households 1,035,363
2019 Projected Households 1,091,341
2010 Census Households 992,781
2000 Census Households 935,274
growth 2010-2014 4.29%
growth 2014-2019 5.41%
Investment Properties-SoCal | 19
EConomyConsistently ranked in Forbes magazine’s top 50 economically thriving metro areas, Orange County
enjoys lower business costs, a highly qualified workforce, and one of the lowest unemployment
rates in the country. Because of the more affluent population and an economic mix that is slanted
toward high-paid biotechnology and professional service jobs, incomes also rise faster than in
neighboring counties.
Everything from the computer software sector to the communications sector has flourished
in recent years. One-fifth of the workforce is now made up of high paying technical jobs and
professional jobs. Major employers in Orange County include Hughes Aircraft, Weber Aircraft,
Hewlett Packard, and IBM. Attraction and retention of the world’s leading companies will remain
high due to Orange County’s 17 colleges and universities, one of the best educated work
forces in the world, and an independent attitude. Other rapidly growing sectors are construction,
professional and business services, and leisure and hospitality. Tourism accounts for nearly 10%
of the county’s workforce, with places such as Disneyland and the giant, post- modern, fantasy
shopping Fashion Island Mall attracting countless visitors. The finance, insurance, and real estate
sectors are also experiencing growth, despite a corresponding decline in the rest of California.
Small businesses flourish in the area’s entrepreneurial climate. With job rates projected to grow
significantly each year, Orange County residents have a lot to look forward to. Orange County is
roughly 1% of the U.S. Population, but it has 3% of Fortune 500 companies. Places Rated Almanac
puts Orange County in the top ten cites in the nation for job growth and retention.
EDUCatIonThe education opportunities in Orange County are excellent and varied, the area is home to
two major universities. The University of California, Irvine, is the fastest growing campus in the U.C.
system. U.C.I. has grown in notoriety in recent years, in the mid 1990’s two faculty won the Nobel
Prize. It was the first time in history that a public university won two Nobel Prizes in the same year.
There are a host of other smaller, private, or religiously affiliated colleges in Orange County.
Chapman University, Cypress College, Fullerton College, golden West College, Saddleback
College, and many others are scattered across the area’s famous groves.
Orange County Top Employers:
RAnK EMPLoyER# of
EMPLoyEES
1 Walt Disney Co. 25,000
2 University of California, Irvine 21,800
3 St. Joseph Health 11,679
4 The Boeing Company 6,873
5 kaiser Permanente 6,300
6 Bank of America Corp 6,000
7 Memorial Care Health System 5,545
8 Target Corp 5,400
9 Cedar Fair LP 5,200
10 California State University, Fullerton 4,984
20 | 27611 La Paz & 27612 El Lazo
´́
P a c i f i c O c e a n
RANCHO SANTAMARGARITA
IRVINE
LAGUNAHILLS
FOOTHILLRANCH
FOUNTAINVALLEY
COSTA MESA
NEWPORTBEACH
LAGUNA BEACH
LAGUNA WOODS MISSIONVIEJO
ALISO VIEJO
SAN JUAN CAPISTRANO
LAKEFOREST
LAGUNANIGUEL
DANA POINT
TUSTIN
COTO DE CAZA
SAN CLEMENTE
HUNTINGTONBEACH
TUSTIN FOOTHILLSWESTMINSTER
SANTA ANA
GARDEN GROVE
CYPRESS
FULLERTON
BUENA PARK
ORANGE
ANAHEIM
CORONA
LAKE ELSINORE
CLEVELAND NATIONAL FOREST
Beac
h Bl
vd
JOHN WAYNE AIRPORT
Regional Map
27611 La Paz & 27612 El LazoL A G U N A N I G U E L , C A L I F O R N I A
Area Overview
Investment Properties-SoCal | 21
toUrISmMore than 43 million tourists visit Orange County
annually, spending approximately $8.7 billion and
supporting nearly 160,000 local tourism industry
jobs. With over a quarter of Orange County’s
landscape designated as open space, including
the 124,000-acre Cleveland National Forest,
the area is a haven for bikers, hikers, and other
outdoor enthusiasts.
Anaheim’s Disneyland, the most famous attraction
in Orange County, as well as the famed knott’s
Berry Farm, and Adventure City are among the
biggest attractions for kids of all ages. For sports
lovers, baseball fans have been cheering on the
California Angels at Edison Field since 1966. Also
nearby is Arrowhead Pond, home to the Mighty
Ducks hockey team. When the Ducks aren’t
at home, the Pond serves as a popular venue
for rock concerts and ice shows. Additionally,
Orange County’s 42 mile coastline offers all
types of seafaring activities including some world
class boating, snorkeling, scuba diving, and
fishing. There are many marina’s lining the coast
that offer boat cruises, fishing trips and charter
services. Visitors can explore areas such as the
“ Big Corona,” where mild waves beckon young
swimmers, or the numerous, rugged coves north
of Laguna Beach, where snorkelers and scuba
divers can view a plethora of underwater life.
Orange County is also renowned for its numerous
popular shopping destinations including: the
upscale outdoor Fashion Island Mall in Newport
Beach, the Brea Mall, and The Outlets at Orange,
Irvine Spectrum Center, Downtown Disney and the
luxury shopping center, South Coast Plaza in Costa
Mesa. South Coast Plaza is visited by approximately
24 million visitors annually and generates annual
sales of $1.5 billion, making it the highest grossing
center in the United States. Besides providing an
extravagant shopping experience with over 250
stores South Coast Plaza offers many services to
guests such as foreign language assistance, shuttle
services, and money exchange.
Orange County Top Attractions:
• laguna art museum
• mission San Juan Capistrano
• orange County Zoo
• Disneyland Park
• Disney’s California adventure Park
• knott’s Berry Farm
Orange County Overview (Continued)
Financials
22 | 27611 La Paz & 27612 El Lazo
Rent Roll
15
6/25/2014This page is part of a package and is subject to the disclaimer on the Occupancy Costs Summary.
CBRE Financial Consulting
27611 La Paz - 27612 El LazoRent Roll
Tenant Name Floor Rate & Amount Type & Suite Number SqFt per Year Changes Changes Operating Expense Lease Dates & Term Bldg Share per Month on to Reimbursements _____________________ ___________ _____________ _________ ______ __________________ 1 The Escrow Source, Inc $21.23 Dec-2014 $21.81 2012 BY
Office, Suite: 100 5,249 $111,444 Dec-2015 $22.38 Dec-2011 to Mar-2017 13.8% $1.77 64 Months $9,287 2 OWNER/USER (101) MTM $0.00 - - GROSS
Office, Suite: 101 317 $0 Expires Aug-2039 0.8% $0.00 $0 Lease expired 4/13. Tenant is currently on month-to-month terms at $720 /Mo. Analysis assumes tenant vacates and Owner/User occupies the space. 3 Inpro Marketing Corporation $8.98 - - NNN
Commercial, Suites: 150/160 6,546 $58,752 (Commercial) Mar-2012 to Feb-2015 17.3% $0.75 36 Months $4,896 4 OWNER/USER (202/203) $0.00 - - GROSS
Office, Suites: 202/203 5,891 $0 Expires Aug-2039 15.5% $0.00 $0 5 OWNER/USER (204) MTM $0.00 - - GROSS
Office, Suite: 204 218 $0 Expires Aug-2039 0.6% $0.00 $0 Lease expired 12/13. Tenant is currently on month-to-month terms at $350 /Mo. Analysis assumes tenant vacates and Owner/User occupies the space. 6 OWNER/USER (205/206/207) $0.00 - - GROSS
Office, Suites: 205/206/207 6,792 $0 Expires Aug-2039 17.9% $0.00 $0 7 OWNER/USER (208) MTM $0.00 - - GROSS
Office, Suite: 208 527 $0 Expires Aug-2039 1.4% $0.00 $0 Lease expired 8/13. Tenant is currently on month-to-month terms at $575 /Mo. Analysis assumes tenant vacates and Owner/User occupies the space. 8 Anareobic, LLC $8.57 Dec-2014 $9.64 NNN
Commerical, Suite: 1A-100 12,377 $106,032 Dec-2015 $10.17 (Commercial) Dec-2011 to Feb-2017 32.6% $0.71 63 Months $8,836
Tenant has a one-time Termination Option at the 36th Mo with six (6) months written notice and an early termination penalty of $27,060. Tenant has one (1) - three (3) year option at FMV with six (6) - nine (9) months notice. Total SqFt 37,917 Total Available SqFt 13,745
Financials
Investment Properties-SoCal | 23
Estimated Replacement Cost
NNN
N:\Shared\SUPPORT\Private Client\TEMPLATES\_PCGNB Folder Template\01-RFP and Offering Memorandum\8 - Replacement Cost Analysis\REPLACEMENT-NNN.xls
Land Size 100,711 Square FeetBuilding Size 37,917 Square Feet
HARD COSTS
Land Acquisition Cost @ 30.00$ 3,021,322$ Hard Costs @ $100 on Office
$50 on Commercial 2,845,550$ Tenant Improvements @ $45 on Office
$10 on Commercial 1,043,960$ 6,910,832$ 76%
SOFT COSTS
A & E @ 2.0% 138,217$ Insurance $0.37 PSF 14,029 Property Taxes 1.03% Hard Costs 71,182 Development Fees $3.00 PSF of Bldg. Area 113,751 Legal 1% Hard Costs 69,108 Developer's Profit 8% Hard Costs 552,867 Loan Fee 1% Hard Costs 69,108 Contingency 2% Hard Costs 138,217 Interest on Land Carry 3% Land Cost 90,640 Interest on Construction 5% Hard Costs 345,542 Interest on Lease Up 3% Hard Costs 207,325 Leasing Commission 10.00$ PSF 379,170
2,189,154$ 24%
9,099,986$ 100%
240.00$
Economic Rent CalculationReplacement Costs 240.00$ Required Return 9.0% 21.60$ Operating Expenses $0 -$ Less Vacancy/Credit 5% 1.08$ Economic Rent Required, PSF per year (NNN) 22.68$ Economic Rent Required, PSF per month (NNN) 1.89$
TOTAL HARD COSTS
TOTAL SOFT COSTS
Total Development Costs
Cost Per Square Foot
Exclusive Agents
Gary Stache
Lic. 00773736 | 949.725.8532
gary.stache@cbre.com
Anthony DeLorenzo
Lic. 01706686 | 949.725.8425
anthony.delorenzo@cbre.com
Pat Scruggs
Lic. 00851446 | 949.725.8520
pat.scruggs@cbre.com
Doug Mack
Lic. 01804065 | 949.725.8571
doug.mack@cbre.com
Mark Shaffer
Lic. 01253743 | 213.613.3758
mark.shaffer@cbre.com
Local Market Contacts
Keith Black
Lic. 01266477 | 949.725.8633
keith.black@cbre.com
Jeff Carr
Lic. 01009600 | 949.725.8631
jeff.carr@cbre.com
CAPITAL MARkETS | INVESTMENT PROPERTIES-SOCAL
3501 Jamboree Rd., Ste 100
Newport Beach, CA 92660
www.ipsocal.com