PARAMOUNTbusiness park
EXECUTIVE SUMMARY
JUNE 2020
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executive summaryNewmark Knight Frank (NKF) is pleased to present the opportunity to acquire 6319–6321 & 6323–6421 East Alondra Boulevard in Paramount, California (the “Property”, “Project”, or “Paramount Business Park”), a 63,214-square-foot, two-building, multi-tenant industrial project located within the Los Angeles South Bay industrial submarket.
The buildings are currently 100% leased to two tenants: The United States of America General Services Administration (“GSA” or “Government”) (Moody’s: Aaa) and VNSM—an established sheet metal subcontractor operating since 1934 with an impressive resume that includes projects such as Griffith Park Observatory, Disneyland, 2028 Olympics and multiple public works contracts. The offering also includes a long-term lease of two radio tower pads to Hi-Favor Broadcasting, LLC, which broadcasts for KLTX, a radio station that has been serving greater Los Angeles since 1926. All tenants have remained current on their rental obligations throughout the pandemic, demonstrating the durability of the income stream.
The GSA has occupied Paramount Business Park since 2006 and, with more than 15.8 years of remaining lease term, they recently expanded into an additional 18,127 square feet. VNSM considers the Property their
headquarters since taking occupancy in 2013 and recently renewed their commitment to the Property by extending their lease through July 31, 2023.
The Property has maintained a strong historical occupancy due to the desirable small building amenities such as high ceiling clearance, above-market parking, fenced yard areas, and a combination of dock-high and ground-level loading which ideally meet the demand within the submarket.
Investors will benefit from 10 years of weighted average remaining lease term from a committed tenant base and the opportunity to acquire a well-located industrial project situated on 6.41 acres in one of the most robust industrial submarkets in the nation. With a FAR of just 0.23:1, investors stand to benefit from future upside with the potential to redevelop the radio tower pads.
PARAMOUNTbusiness park
$18,000,000Offering Price
$944,800Year 1 NOI
5.25%Year 1 Cap Rate
$1.06 PSF MGIn-Place Rent
100%Occupancy
10.0 YearsWeighted Average Lease Term
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RADIO TOWER PAD
RADIO TOWER PAD
PROPERTY LINE
6319–6321 EAST ALONDRA BLVD
6323–6421 EAST ALONDRA BLVD
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6.41 AcresTotal Land Area
63,214 SFTotal Rentable Area
0.23:1Building FAR
265 Spaces (4.19/1,000 SF)Total Parking
PA M2Zoning
COMBINED TOTAL
The United States of AmericaTenant
35,156 SFTotal Rentable Area
6,912 SFMezzanine
FourDock-High Doors (Truck Wells)
TwoGround-Level Doors (Drive-in)
22’Clear Height
1985/2020Year Built/Renovated
2 x 400-AmpPower
February 2036Lease Expiration
6319–6321 ALONDRA BLVD
PHL, Inc. dba VNSMTenant
28,058 SFTotal Rentable Area
7,597 SFMezzanine
TwoDock-High Doors (Truck Wells)
TwoGround-Level Doors (Drive-in)
22’Clear Height
1984/2013Year Built/Renovated
2 x 400-AmpPower
July 2023Lease Expiration
6323–6421 ALONDRA BLVD
Hi-Favor BroadcastingTenant
43,745 SFLand Area
RADIO TOWER PADS
June 2028Lease Expiration
SITE PLAN
Radio Tower
Radio Tower
ALON
DRA BLVD
Private Dr.
Private Dr.
Private Dr.
Private Dr.
Private Dr.
Private Dr.
Los Angeles River710
6319–6321
6323–6421
The Property's income stream has recently demonstrated it's durability with 100% of rents
collected throughout the pandemic.
ITTELLA FOODS RESERVED PARKING
GSA’S FENCED
YARD
VNSM’S FENCED YARD
investment highlightsHIGHLY FUNCTIONAL INDUSTRIAL BUILDINGS
The 6319–6421 E. Alondra Boulevard buildings are located in the Paramount Business Park, a master-planned project with protective CC&Rs and a professionally managed association. The two, renovated, concrete tilt-up industrial buildings offer features that meet the demand within the Southern California industrial market, including rare fenced yard areas, dock-high and ground-level loading, 22’ clear height, functional mezzanine space and ample parking.
EXCEPTIONAL LOCATION
• The Property is located within twenty minutes from the Ports of Los Angeles/Long Beach, LAX and Long Beach Airport
• The premier, South Bay location provides immediate access to both executive and affordable housing and a deep, skilled labor pool that the Greater Los Angeles Metro offers
STABLE CASH FLOW & SECURE TENANCY
• The Property’s income stream has recently demonstrated it’s durability with 100% of rents collected throughout the pandemic
• 56% of the property is leased to the United States of America (Moody’s: Aaa) through February 2036, providing a stable and secure income stream
• The remainder of the property is leased to VNSM, a sheet metal subcontractor in business for 86 years, which considers the Property their headquarters and recently extended their lease through July 2023
• The offering also includes a long-term lease of two radio tower pads to Hi-Favor Broadcasting, LLC through June 2028, providing additional stable cash flow for the Property
COVERED LAND OPPORTUNITY
The business-friendly City of Paramount allows for a FAR of up to 2.5:1. Inclusive of the radio tower pads, the Property features a low FAR of just 0.23:1, presenting investors with a variety of future redevelopment opportunities while enjoying the present, stabilized cash flow.
SUPERB MARKET FUNDAMENTALS
The 222-million-square-foot, South Bay industrial market has historically been one of the strongest markets in Los Angeles County due to its proximity to the Ports of Los Angeles and Long Beach and LAX, the region’s major economic engines. As of 1Q 2020, the South Bay reported a total vacancy rate of 1.1% with total asking rents of $0.93 PSF NNN, near an all-time low and high respectively.
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JUNE 2020
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.
Corporate License #01355491
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Sean FulpExecutive Managing Director [email protected] CA RE Lic. #01389064
Mark [email protected] RE Lic. #02033871
Ryan PlummerManaging Director [email protected] CA RE Lic. #01765854
Ryan [email protected] RE Lic. #01996711
PRIVATE CAPITAL CONTACTS
Kevin ShannonCo-Head, U.S. Capital Markets [email protected] CA RE Lic. #00836549
Ken WhiteExecutive Managing Director [email protected] CA RE Lic. #01788506
INSTITUTIONAL SALES CONTACTS
John McMillanVice Chairman [email protected] CA RE Lic. #01103292
Greg StummAssociate Director [email protected] CA RE Lic. #01954921
LEASING CONTACTS
Brian BowisManaging [email protected] CA RE Lic. #01780922
FINANCING CONTACTS
Scott SchumacherSenior Managing [email protected] RE Lic. #01078450
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