EXECUTIVE SUMMARY | FEBRUARY 2019 CORPORATE CENTER · Above Standard Surface Parking (5.0/1,000...
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CORPORATE CENTER POMONA, CALIFORNIA CLASS A, 100% LEASED, SINGLE TENANT, TWO- STORY OFFICE BUILDING New Firm 10 Year Lease EXECUTIVE SUMMARY | FEBRUARY 2019
Transcript of EXECUTIVE SUMMARY | FEBRUARY 2019 CORPORATE CENTER · Above Standard Surface Parking (5.0/1,000...
CORPORATE CENTERPOMONA, CALIFORNIA
CLASS A, 100% LEASED, SINGLE TENANT, TWO- STORY OFFICE BUILDINGNew Firm 10 Year Lease
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POMONA, CALIFORNIA
CORPORATE CENTER
Newmark Knight Frank (NKF), as exclusive advisor, is pleased to present the excellent
opportunity to acquire 901 Corporate (The “Property”). The Property is a 100% leased, two-
story, single-tenant office building totaling 96,365 rentable square feet. 901 Corporate offers
a long-term, stable and secure investment opportunity with high-quality tenancy.
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Interest Offered
Fee Simple
Tenancy
Strong Regional Credit
901 Corporate is situated on approximately
6.3 acres and is surrounded by numerous
retail and service amenities as well as a
diversified employment base. Tenants
and employees have easy access to
the San Bernardino (I-10), Orange (SR-
57) and Chino Valley (SR-71) Freeways
providing convenient commutes to all
of the Southern California basin. 3
The Property is in proximity to Cal Poly
Pomona and Clarement College, which
produce some of the best young local talent.
The Property is an outstanding opportunity
to purchase a stable, high-yielding asset with
high-quality tenancy in a supply constrained
submarket that is poised for significant growth.
This opportunity is being offered un-priced and on an “as is” basis for the fee interest in the building, surface parking areas and land thereunder unencumbered by existing debt.
Offering Price
SubmitTerms
All Cash
Lease Term
10 Years Firm With Annual EscalationsLease Structure
NNNParking
Above Standard Surface Parking (5.0/ 1,000 RSF)
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Address
901 Corporate Center DrivePomona, CA 91768
Square Footage
96,365
Occupancy
100%
Stories
2
Site Area
6.3 acres
Parking Spaces
481
Parking Ratio
5.0/1,000 RSF
Year Built /Renovated
1989/2019
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TS 901 CORPORATE IS AN INSTITUTIONAL-QUALITY, SINGLE-
TENANT OFFICE BUILDING
Institutionally owned and maintained, the two-story,
96,365 rentable square foot office building was built in 1989
and renovated in 2019. The Property offers tenants a high-
image corporate identity along with ample surface parking
and larger than market-average floor plates. 901 Corporate
is leased to Lereta, LLC on a brand new (February 2019) firm
10-year triple net lease with annual escalations.
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SECURE, LONG TERM, NET LEASED INCOME STREAM WITH AN
EXISTING LETTER OF CREDIT OFFERING STRONG RETURNS
The Property is 100% leased to Lereta, LLC (www.lereta.com)
through the end of-2029, providing an investor the stability of
a long-term absolute NNN lease with a high-quality regionally-
recognized tenant and a healthy Letter of Credit. Additionally,
the in-place rent is at market and has 2.5% annual increases,
providing an investor a stable and predictable cash flow well
into the future. The tenant also has two 5-year options to renew.
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UNPARALLELED LOCATION WITHIN THE
SOUTHERN CALIFORNIA BASIN
901 Corporate is located in a master
planned office development that
provides convenient access to business,
residential and recreational opportunities
throughout the region. The Property
is located in proximity to the San
Bernardino (I-10), Orange (SR-57) and
Chino Valley (SR-71) Freeways providing
convenient commutes to all of the
Southern California basin. In turn, the
Property is ideally situated to appeal
to decision-makers in the healthcare,
technology, financial services, and
defense industries, all of which have a
significant presence in the immediate
area. The Property is in proximity to Cal
Poly Pomona and Claremont College,
which produce some of the best young
local talent. The Eastern San Gabriel
Valley is a top-pick for executives and
employees looking for a range of high-
quality housing options, excellent schools
and proximity to amenities with great
transportation infrastructure.
DISCOUNT TO REPLACEMENT COST
901 Corporate is a premier office headquarters
in Pomona, designed and constructed to
high technical specifications, capable of
accommodating the broadest range and
most demanding occupancy requirements.
The Property is expected to trade at a
significant discount to replacement cost, as
high construction costs, coupled with supply
constraints, have created significant barriers
to competitive development. Estimated
replacement cost for 901 Corporate is
approximately $375 per square foot.
POSITIVE MARKET FUNDAMENTALS
AND LONG-TERM STABILITY OF THE
SAN GABRIEL VALLEY
Over the past 12 months, the Eastern San
Gabriel Valley submarket has seen over 24,944
square feet of positive net absorption, including
the recent leases to Leidos for 98,505 square
feet and Utas Aerospace for 79,000 square
feet. As of the 3rd quarter of 2018, the Eastern
San Gabriel Valley has experienced positive net
absorption of 122,157 square feet over the last
12 quarters and five quarters of consecutive
increases in average asking lease rates.
ONTARIO
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CORPORATE CENTER
POMONA
DIAMOND BAR
Future Residential Development
Leretawww.lereta.com
Today, LERETA is the industry’s largest tax
service vendor, serving over 4,000 lenders.
LERETA is the fastest growing vendor,
adding 10-20 new clients every month
due to their extraordinary service, flexible
technology, and highly experienced team.
In 1986 their founders assembled some of
the most experienced professionals in the
mortgage lending industry and formed
LERETA. They had one primary objective –
to dramatically improve customer service
levels in the industry. Thirty years later,
LERETA maintains the same objectives and
continues to provide extraordinary service
to their customers.
Tenant
Lereta, LLC
Size
96,365 RSF
Lease-Term Remaining
10 Years
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96,365
% of Property
100%
Lease Expiration
4Q 2029
Rental Rate
$1.60/SF NNN
Annual Increases
2.50%
Options to Extend
Two 5-Year
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CORPORATE CENTERPOMONA, CALIFORNIA
CAPITAL MARKETS EXPERTS
PAUL JONESExecutive Managing DirectorCA RE #[email protected]
KEVIN SHANNONCo-Head, U.S. Capital MarketsCA RE #[email protected]
BLAKE BOKOSKYManaging DirectorCA RE #[email protected]
BRANDON WHITESenior AssociateCA RE #[email protected]
LOCAL MARKET EXPERTS
JOHN EWARTSenior Managing DirectorCA RE #[email protected]
JOHN DACIOLASSenior Managing DirectorCA RE #[email protected]
FINANCING EXPERTS
DAVID MILESTONEVice ChairmanCA RE #[email protected]
BRETT GREENSenior Managing DirectorCA RE #[email protected]
CA RE License #01355491
The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
