DISTRIBUTION WAREHOUSE CHINO, CA - Available … · Chino, California is an opportunity to acquire...

Exclusively Offered By:

Chase MacLeodVice PresidentP [email protected] # 01899515

Shy AssarAssociateP [email protected] # 01964667

DISTRIBUTION WAREHOUSE

OFFERING MEMORANDUM14040 - 14042 CENTRAL AVENUE, CHINO, CA

FOR SALE | ±52,991 SF OWNER / USER LEASED INVESTMENT OPPORTUNITY

CHINO, CA

Voit Real Estate Services | Chase MacLeod | [email protected] | 909.545.8090

The Offering

The property located at 14040 –14042 Central Avenue in Chino, California is an opportunity to acquire a highly functional distribution warehouse in the heart of the western most portion of the Inland Empire. The property (±52,991 SF) offers a rare opportunity for an owner / user to occupy a building with long term in place rental income, or an investor the opportunity to purchase a property located in a highly sought after infill market with vacancy and significant upside.

Asking Price: $7,495,000 | $141.43 PSF

Project & Site Highlights• Two-Unit, Fully Demised Building (Separate Addresses)

• ±25,555 SF Leased to Quality Tenant Through December 2024

• ±27,436 SF Available Vacant or After Short Term Leaseback or Three (3) Year Leaseback with Seller

• NOI (with Seller Leaseback)*$369,000 (FYE June 30, 2017) Assumes Closing Date by June 30, 2016.

• Four (4) Dock High Doors

• 22' Minimum Clearance

• 0.45 GPM / 3,000 Sprinkler Calculations

• Three (3) Ground Level Doors

• SBA Owner / User Financing Possible (verify)

Chino Hills Pkwy

Butterfield Ranch Rd

Grove AveGrove Ave

Vineyard AveVineyard Ave

Garey AveGarey Ave

Reservoir StReservoir St

71

60

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SITE

ChinoAirportChinoAirport

Distance to —

Freeway – 2.2 miles




Freeway– 8 miles

14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Execut ive Summary

Shy Assar | [email protected] | 909.545.8091

Tenant and Lease OverviewSokol Diamond Elite Gymnastics recently extended their lease for ten (10) years in the 14040 Central Avenue unit commencing January 1, 2015 at an initial monthly industrial gross rent of $16,355 per month, which is subject to an annual increase of three percent (3.0%) every year on January 1.

Tenant Lease Summary

Unit Address 14040 Central Avenue, Chino

Square Footage 25,555 SF

Lease Commencement January 1, 2015

Lease Term (Expiration Dec. 2024) 10 Years

Current Monthly Base Rent(January - December 2016)

$16,846 Per Month

Annual Escalations 3.0%

Lease Form AIR Multi-Tenant Gross

Annual Operating Expenses - Entire Bldg.(CAM, Insurance, Association Fees)

$39,700

Est. Annual Property Taxes - Entire Bldg.(Post Sale)

$82,445

Comments: Tenant’s lease does not allow for increases to property taxes from transfer of ownership or property sale to be passed through to the tenant.

Seller Potential Leaseback Summary

Seller is prepared to either deliver the 14042 Central Avenue unit vacant or agree to a short term leaseback prior to closing.

Potential Seller Leaseback

Commencement of Term Upon Closing

Lease Term Thirty-Six (36) months

Lease Type Industrial Gross

Renewal Option None

Rental Rate $23,897/Mo. Industrial Gross

Annual Escalations 3.0%

Sale Leaseback Cash Flow

Annual Gross Income (est.) $492,195.00

NOI (with leaseback)* $369,000.00 (FYE June 30, 2017)

*Comments: Assumes Closing Date of June 30, 2016 and leaseback commencement of July 1, 2016.

14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Tenant and Lease Overview

Voit Real Estate Services | Chase MacLeod | [email protected] | 909.545.8090 Shy Assar | [email protected] | 909.545.8091

Site Plan

CENTRAL AVE

±27,016 SFCan be delivered vacant

after short term leaseback to Seller,

or three (3) year leaseback to Seller

±25,975 SFLong term leasein place through December 2024

4 DockDoors

14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Property Overview

GLGL GL


Building Specifications

Site Specifications

APN: 1021-021-24

Zoning M-2

Lot Size ±2.96 AC (128,937 SF)

Lot Dimensions 435' x 300'

Building Floor-to-Area Ratio 0.411

Rail Line / Rail Spots / Rail Doors None

Secured Truck Court / Yard (Y/N) No

Truck Court Depth & Length 60' Concrete Apron

Drive Around Capable Yes

Concrete Apron Dimensions 60' Concrete Apron

Truck Court Slope TBD

Trailer Parking Stalls None

Auto Parking Spaces 109 (2.06/1,000)

Physical Asset Specification

Building Type Industrial Distribution and Manufacturing

Year Built 1990

Construction Type Concrete Tilt-Up

Roof Construction (original / replacement date) Original (Regular Maintenance)

Building Dimensions (W' x L') 321' x 173'

Building Square Footage ±52,991 SF

Office Square Footage (%) ±5,100 SF (Split Between Units)

Mezzanine Square Footage None

Building Footprint 52,991 SF

Minimum Clear Height 22'

Maximum Clear Height 23'6”

Column Spacing (Speed Bay Depth) 40' x 40'

Loading Dock High Doors (H' x W') 4 (9' x 10')

Dock Package (Bumpers, Shelters, Z-Guards) Bumpers

Truckwells (H' x W') None

Levelers (Interior or Exterior) 2 Exterior

Ground Level Drive-In Doors (H' x W') 3 Total (10' 0" W x 14' 0" H)

Power (Amps/Volts/Phase) 400 Amps/277-480v/3p 4w

Insulation Foil Scrim

Sprinkler System Calcs (Head Type) 0.45 GPM/3,000

Warehouse Lighting Metal Halide Warehouse Lights

Skylight Ratio Approx. 2% Ratio



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Lease Comps# Address City1 13940 Magnolia Ave Chino2 5270 Edison Ave Chino3 5002 Lindsay Ct Chino4 14323 Fern Ave Chino5 12240 East End Ave Chino6 13828 Mountain Ave Chino7 13626 Monte Vista Ave, Unit B Chino8 13901 Yorba Ave Chino9 1009-1027 Brooks St Ontario10 1702 S. Cucamonga Ave Ontario11 708 Nogales St City of Industry12 19224 E. Walnut Dr City of Industry13 1365 Darius Ct City of Industry14 19877 Quiroz Ct City of Industry15 21305 Ferrero Pkwy City of Industry

Sale Comps# Address City1 1181 E. Belmont St Ontario2 883 S. Azusa Ave City of Industry3 13001 Temple Ave City of Industry4 15323 E. Proctor Ave City of Industry5 10700 7th St Rancho Cucamonga6 2121 Business Pkwy Ontario7 19400 E. San Jose Ave City of Industry8 1690 Milliken Ave Ontario9 1705 E. Francis St Ontario10 1468 Davril Cir Corona11 425 S. Hacienda Blvd City of Industry12 1801 Railroad St Corona13 803 S. Tucker Ln City of Industry14 510 Alcoa Cir Corona15 181 Via Trevizio Corona16 755 Trademark Cir Corona17 5911 Schaefer Ave Chino18 3549-3553 Placentia Ct Chino19 4850 Eucalyptus Ave, Bldg F Chino

14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Sales and Lease Comparables


LEASE COMPARABLES*

Map # Date Address City Leased SF Office Rent PSF Free Rent Lessee LessorAnnual

Increases Comments/Notes

1 02/16 13940 Magnolia Avenue Chino 47,917 SF -- $0.55 NNN 1 mo Argos Material Dist. 2000 Gold, LP 3% Annually --------------

2 07/14 5270 Edison Avenue Chino 39,723 SF 18% $0.54 NNN 3 mos Pacific Coast Manufacturing Pegasus Bay, LLC 3% Annually --------------

3 2/16 5002 Lindsay Court Chino 32,000 SF -- $0.72 G 1 mo Uni-Pac Oscar Lin 3% Annually -------------

4 07/14 14323 Fern Avenue Chino 25,000 SF 8% $0.71 G 2 mos JF Manufacturing 3% Annually -------------

5 03/14 12240 East End Avenue Chino 28,662 SF -- $0.67 G 4 mos CB E-Commerce Crawford Family Trust 3% Annually -------------

6 11/15 13828 Mountain Avenue Chino 41,166 SF 5% $0.645 G 1 mo El and El Wood Products Golden Giant Liong, LLC 3% Annually Freestanding Building

7 01/16 13626 Monte Vista Avenue, Unit B Chino 14,080 SF -- $0.75 G 1 mo Linco International E.B.B. Properties 3% Annually --------------

8 11/15 13901 Yorba Avenue Chino 25,000 SF 8% $0.71 G 0 Yes Depot, Inc Majestic Realty Co 3% Annually Renewal

9 03/14 1009-1027 Brooks Street Ontario 23,204 SF 4% $0.75 G 0 --------------- HOS Properties 5% Annually As-Is

10 01/15 1702 S. Cucamonga Avenue Ontario 20,202 SF 9% $0.77 MG 0 Altech, Inc WNL Ontario Yes --------------

11 07/15 708 Nogales Street City of Industry 20,993 SF 5,076 SF $0.85 G 1 mo Acosta, Inc Dedeaux Enterprises, LLC 3% Annually 24' CL, 200 amp, 1 GL/2 DH

12 03/15 19224 E. Walnut Drive City of Industry 21,675 SF 4,663 SF $0.88 NNN 1 mo America Auto Parts Cntr Chalmers - Walnut, LLC 3% Annually 24' CL, Option to extend,

13 08/15 1365 Darius Court City of Industry 23,040 SF 3,000 SF $0.79 G 1 mo PT Cabinetry, Inc Nuflex Investments, Inc 3% Annually 18' CL, 1 GL/2 DH, 600 amps

14 05/15 19877 Quiroz Court City of Industry 24,680 SF 7,566 SF $0.73 G 1 mo Elegant Stone/Granite Shea Properties 3% Annually 1 GL/3 DH, 400 amps, 18' CL

15 11/15 21305 Ferrero Parkway City of Industry 28,193 SF 1,771 SF $0.76 G 0 HD Technology AEW 3% Annually 1 GL/3 DH, 27' CL, 400 amps

*As of April 2016 there is only one (1) availability for lease in Chino between 20,000 - 30,000 SF (Asking rental rate is $0.755 Gross)

SALE COMPARABLESMap # Address City SF Yr. Built Sale Price $ / SF Buyer Seller Buyer Type Comments/Notes

1 1181 E. Belmont Street Ontario 21,726 SF 2015 $3,585,000 $165.01 Godfrey Ching Shyr JBG Development User 2 GL/3 DH

2 883 S. Azusa Avenue City of Industry 32,300 SF 1998 $5,300,000 $164.09 XWN Properties LLC Jeli Properties, LLC User ----------------

3 13001 Temple Avenue City of Industry 56,496 SF 2015 $8,650,000 $153.11 Yang Yang S & C Property Dev., Inc User ----------------

4 15323 E. Proctor Avenue City of Industry 27,240 SF 1972 $4,086,000 $150.00 Tripod Property, LLC Boaz Realty, LLC User ----------------

5 10700 7th Street Rancho Cucamonga 42,583 SF 1982 $6,266,500 $147.16 ATG Electronics, Inc Barb Family Living Trust User 2 GL

6 2121 Business Parkway Ontario 44,984 SF 2016 $6,522,680 $145.00 -------------------- Frewing Dev. User High Image Corp Bldg, 32' CL

7 19400 E. San Jose Avenue City of Industry 26,795 SF 1980 $3,850,000 $143.70 Fortune Dynamic RE, LLC Foria Investments, LP Investor ----------------

8 1690 Milliken Avenue Ontario 52,387 SF 2008 $7,334,180 $140.00 Kazarian Family Trust Mintra Investments, LLC Investor 1200 amps, 28' CL,1 GL/5 DH

9 1705 E. Francis Street Ontario 23,356 SF 2015 $3,269,840 $140.00 RSD Shelby Office Park, LLC User 2 GL/2 DH

10 1468 Davril Circle Corona 38,322 SF 1990 $15,210,148 $135.96 Morningstar General JR Associates User Desirable Corona location, yard

11 425 S. Hacienda Blvd City of Industry 51,823 SF 1997 $7,000,000 $135.08 Rexford Industrial Realty, LP CCR&B III, LLC Investor ---------------

12 1801 Railroad Street Corona 24,059 SF 1988 $3,250,000 $135.08 Anthony Alosi Thomas Corey User ---------------

13 803 S. Tucker Lane City of Industry 29,197 SF 1974 $3,925,000 $134.43 Tucker Association, LLC Pace Trust User ----------------

14 510 Alcoa Circle Corona 29,244 SF 2004 $3,943,500 $134.85 Richard Barteaux Charles Zhang Investor ---------------

15 181 Via Trevizio Corona 23,250 SF 2005 $3,100,000 $133.33 Steve Rumsey Portrait Construction User --------------

16 755 Trademark Circle Corona 34,312 SF 2001 $4,556,000 $132.78 Motive Energy, Inc Plak Smacker, Inc User High image, concrete truck apron

17 5911 Schaefer Avenue Chino 59,041 SF 2004 $7,262,500 $123.01 Chengliang Tang Goodhope Bags User 26' Clearance

18 3549-3553 Placentia Court Chino 60,374 SF 1986 $7,400,000 $122.57 Heitman Architect Investments Investor Short term leaseback

19 4850 Eucalyptus Ave, Bldg F Chino 86,204 SF 1998 $9,750,000 $113.10 Mukesh Batta Clive McFerran User 1600 amps, 30' CL, 2 GL/11 DH

14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | Sales and Lease Comparables


OWN VS. LEASE

14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | F inance Opt ions

Purchase Assumptions Per sq ft Lease AssumptionsSize (Square feet) $141 52,991 Size (Square feet) 27,016Initial Purchase Price $7,495,000 NNN Lease rate per RSF $0.55Tenant Improvements $0.00 0 Monthly lease cost net of utilities $14,859Total Purchase Price $7,495,000 Monthly utilities $0.00 $0Down Payment 10% $749,500 Monthly lease cost plus utilities $14,859Loan Amount $6,745,500

Start-up Costs Start-up CostsDown Payment $749,500 Prepaid Rent $14,859Estimated Closing costs $36,399 Security Deposit $14,859Cost Segregation $0

Total out of pocket costs $785,899 Total out of pocket costs $29,718

Monthly Costs Per sq ft Monthly Costs Per sq ftMortgage Payment (P&I) $38,067 Lease Payment $0.55 $14,859Property Taxes 1.1% $6,995 Property Taxes INCAssociation Dues $1,583 Operating Expenses $0.18 $4,863COA/CAM $1,725 Association Dues $0.00 $0Avg Rental Income for lease term $19,016

Total Monthly Costs $29,355 Total Monthly Costs $19,722

Net Monthly Ownership Cost, Net of Tax Benefits Net Monthly Lease Cost

Purchase and Alloc to Bldg $7,495,000 90% Tax Benefits 40%39 yrs 12 mos Depreciation Benefit n/a

Monthly depreciation @ 40% tax bracket $5,765 Operating Expense Deduction $825Property Tax, Utilities, COA/CAM $4,121 Lease Deduction $5,944Interest Deduction (5 year avg) $12,182 Utilities $633Total Tax Benefits $22,068 Total Tax Benefits $6,577

Net Effective Ownership Costs $7,287 Total Effective Monthly Lease Costs $13,145Net Cost Per SF to Own $0.14 Net Cost Per SF to Lease $0.49

Appreciation Benefits of OwnershipRate of Assumed Appreciation per Year 3.0%

Appreciated Value Year 1 $7,719,850Appreciated Value Year 2 $7,951,446Appreciated Value Year 3 $8,189,989Appreciated Value Year 4 $8,435,689Appreciated Value Year 5 $8,688,759Appreciated Value Year 6 $8,949,422Appreciated Value Year 7 $9,217,905Appreciated Value Year 8 $9,494,442Appreciated Value Year 9 $9,779,275Appreciated Value Year 10 $10,072,653Total Appreciation $2,577,653Less Down Payment -$749,500Net Appreciation $1,828,153Monthly Appreciation $15,235Monthly Appreciation per RSF $0.29

[email protected]

OWN LEASE

For additional information, please contact:Matthew Foster

Union Bank 949-553-4372949-433-0091


SBA OPTIONS

14040–14042 CENTRAL AVE CHINO Offer ing Memorandum | F inance Opt ions

Total Purchase Cost $7,495,000

10 yrs Fixed 20 yrs Fixed 25 yrs Fixed 20 yrs Fixed1st 2nd 1st 2nd

Down Payment $749,500 $749,500LTV 90% 90%

Loan Amount $4,497,000 $2,248,500 $4,497,000 $2,248,500Financed Fee $50,842.75 $50,842.75

Rate (%)* 3.750% 4.820% 4.300% 4.820%Amortization 25 20 25 20Term (Years) 20 20 25 20

504 Monthly Payment ($23,120.48) ($14,946.94) ($24,488.04) ($14,946.94)Monthly Payment Estimate 504 Total ($38,067.42) 504 Total ($39,434.98)

Interest Only Payment Estimate

Loan Fee %* 0.500% 2.150% 0.500% 2.150%Loan Fee $22,485.00 $50,842.75 $22,485.00 $50,842.75 **

Appraisal & Review* $3,000.00 Fee Combined $3,000.00 Fee CombinedEnvironmental* $1,900.00 Fee Combined $1,900.00 Fee Combined

Legal* $0.00 $2,500.00 $0.00 $2,500.00Title (.006% of Loan Amount) $6,814.00 Fee Combined $6,814.00 Fee Combined

Escrow* $1,500.00 Fee Combined $1,500.00 Fee CombinedOther* $700.00 $0.00 $700.00 $0.00

Total $36,399.00 $0.00 $36,399.00 $0.00

*For 504, this is Bank Interim Loan Fee 504 Total $36,399.00 504 Total $36,399.00

Total Out of Pocket Expenses(Down Payment and Closing Costs)

504 Out of Pocket Expense

$785,899 504 Out of Pocket Expense

$785,899

* Required Field - variable information** SBA Loan fee is financed with Debenture

Commercial Real Estate Purchase Analysis

SBA 504 Option 1 SBA 504 Option 2

Estimated Real Estate Loan Fees

Any transaction arising from this comparison is expressly subject to credit approval by Union Bank and to the exectution and delivery of transaction documentation satisfactory to Union Bank. Additional Terms and Conditions not presented in this comparison will apply. Amounts shown are for comparitive purposes only. Actual final transaction amounts may differ. Equal Opportunity Lender.

Financing Solutions Provided by:

14040-14042 Central Ave Chino, CA

52,991 SF @ $141 per SF

Matt Foster Business Development Officer 949-553-4372 949 433 0091 (mobile)

Feb 8, 2016


Exclusively Offered By:

Chase MacLeodVice PresidentP [email protected] # 01899515

Shy AssarAssociateP [email protected] # 01964667

3280 Guasti Road, Suite 100, Ontario, CA 91761 • 909.545.8090 • Lic #01333376 | www.voitco.comLicensed as Real Estate Salespersons by the CA Bur of Real Estate. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. ©2016 Voit Real Estate Services, Inc. All Rights Reserved. Licensed #01333376

OFFERING MEMORANDUM 14040–14042 CENTRAL AVE CHINO

OWNER / USER LEASED INVESTMENT OPPORTUNITY

CHINO, CA

DISTRIBUTION WAREHOUSE CHINO, CA - Available … · Chino, California is an opportunity to acquire...

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