INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
2055TORRANCE BLVD
V A L U E A D D O R O W N E R U S E R O P P O R T U N I T Y - P R I M E S I G N A L I Z E D C O R N E R M E D I C A L / O F F I C E B U I L D I N G
O F F E R I N G M E M O R A N D U M
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times, different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”) and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arm’s length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).
CONFIDENTIALITY AGREEMENTYour receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.
DISCLAIMERThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property”s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.
The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner. PMStudio_September2018
TABLE OF CONTENTS
Investment Highlights
Investment Summary
Area Overview
Demographics
Financial Analysis
I.
II.
III.
V.
VI.
2055TORRANCE BLVDTo r r a n c e , C a 9 0 5 0 1
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
• Newly Renovated Office/Medical Building on Torrance Boulevard
• Value Add or Owner User Opportunity
• Prime Signalized Intersection Location with Great Visibility
• Destination Location - Blocks from Historic Downtown Redevelopment Area
• Great Visibility with Easy Ingress and Egress
• Dense Infill Location – Population over 217,000 Within Three Miles
• Strong Demographics – Average Household Income within Three Miles of $98,264
• Daily Car Count 33,000+
INVESTMENT HIGHLIGHTS
2055TORRANCE BLVD
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
This rare value-add or owner-user medical/office building in Torrance California is being offered exclusively by CBRE. The property sits on a major signalized corner with great visibility and easy ingress and egress just blocks from Historic Downtown Torrance.
The property has recently undergone major renovations in the last year and requires minimal additional improvements. The building is currently configured as multi-tenant with approximately 7,375 square feet of gross leasable area on an 18,213 square foot lot. There are twenty six (26) surface parking spaces and the traffic count on Torrance Boulevard exceeds 33,000 per day.
The Downtown area has been designated as a Historic Downtown Redevelopment Project and has undergone a major transformation in recent years. Since the adoption of the project area, the total property valuation for the Downtown Project has increased to $167 million in 2010.
INVESTMENT SUMMARY
Property Address 2055 Torrance Blvd., Torrance, CA 90501
Price $ 2,499,000
Cap Rate - Pro-forma 5.26%
Total GLA 7,375
Total Land Area 18,213 SF
Year Built 1948
Number of Stories 1 Story / 3 Units
Zoning TOCC-CTR
Parcel 7354-018-009
Traffic Count ±33,000
5
2055TORRANCE BLVD
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
6
SITE PLAN
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
The City of Torrance is located in southwest Los Angeles County in a region known as the South Bay. Torrance is the eighth largest municipality in Los Angeles County. Torrance is bordered by 1.5 miles of beach and the City of Redondo Beach to the west, the communities of Gardena and Lawndale to the north, City of Los Angeles’ Harbor Gateway and Lomita to the east, and the communities of the Palos Verdes Peninsula to the south.
Incorporated in 1921, the population of Torrance is 146,860 with a peak daytime population that grows to 250,000 or more. Torrance is the eighth largest city in Los Angeles County and the 33rd largest city in California.
Torrance consistently ranks among the best in the country for: best place to raise children; safest cities; top places to live; top schools.
TORRANCE, CALIFORNIA
From its humble beginnings as an industrial garden city founded in 1912 by industrialist Jared Sidney Torrance, the city of Torrance has grown from the few city blocks that comprise Downtown Torrance to a 21 square mile thriving community. The Downtown area was originally designed by the sons of renowned landscape architect Frederick Law Olmsted, designer of New York’s Central Park. The plan of the Downtown area was laid out to take advantage of scenic mountain vistas and the afternoon sea breeze. The City of Torrance is committed to revitalizing Downtown Torrance as a vibrant place to live and destination for shopping, working, dining, and amusement. The City will continue to invest resources for pedestrian, lighting, landscape, infrastructure, and parking improvements to enhance circulation and safety with the goal of fostering commerce, attracting new businesses, and preserving the character of Downtown.
This area is also experiencing its own renaissance with the development of the Historic Downtown Project. This $44 million retail/residential mixed-use project is a result of a joint private and public effort by the ANA Real Estate U.S.A., Inc./Gascon Mar Ltd. and the former City of Torrance Redevelopment Agency. It occupies two sites in the commercial sector of the Downtown Project Area and features 28,000 square feet of commercial retail floor space
HISTORIC DOWNTOWN TORRANCE
7
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
8
(Plaza del Prado), and three residential complexes (Brisas del Mar, Brisas del Prado, Brisas del Sol) containing 148 condominium units.
In addition, the former Redevelopment Agency allocated $200,000 from the Downtown Bond revenues in 1986 to establish the Commercial Rehabilitation Program to help property owners and businesses make needed improvements to the exterior of their buildings. Accordingly, owners receive payment for half the cost of exterior improvements up to $40,000 per property. Numerous buildings have been renovated under this program, including the El Prado Apartments and the Newberry Building, located at the intersection of El Prado and Sartori Avenues. Since the adoption of
the project area, the total property valuation for the Downtown Project has increased from just over $7 million dollars in 1980 to $66 million dollars in 1992 and $167 million in 2010.
Dining experiences in Downtown Torrance range from coffee and a donut to California Cuisine with linen table service. Within the few square blocks of Downtown, you can sample a wide variety of international cuisine from India, Mexico, Japan, Korea and Brazil. Our award winning restaurants and bakeries are popular eateries that have made us a dining destination.
Sources: https://www.torranceca.gov/home/showdocument?id=3038
https://www.torranceca.gov/our-city/community-development/successoragency/downtown-project
• No gross receipts tax; competitive utilities and business license fees
• Major industry clusters, including corporate headquarters, medical, retail, automotive, high-tech and manufacturing
• Full-service City with a Class 1 Fire Department rating for lowered insurance rates. Dedicated Police force that keeps Torrance ranked by the FBI as one of the nation’s safest cities
• 20 minutes from LAX and 20 miles from Downtown L.A.
• Easy access to 110 and 405 freeways and to 1.5 miles of lifeguard-patrolled Torrance Beach
• Discover Torrance TBID with 15 participating hotels
• South Bay Entrepreneurial Center and Startup Business Incubator
• Regional Transit Center (in development) and general aviation airport Zamperini Field
• Pleasant year-round climate with low humidity and gentle sea breezes
• Housing options for every budget, from ocean view prop¬erties to affordable rentals
• Hundreds of restaurants in every cuisine for every budget and taste
• Del Amo Fashion Center, one of the nation’s largest malls
• Beautiful public spaces and more than 30 pristine City parks
More Information: Discover Torrance
Source: https://business.torranceca.gov/about-us/torrance-advantage-for-businesses
HISTORIC DOWNTOWN TORRANCE (cont.)
KEY ADVANTAGES TO INVESTING OR ESTABLISHING A BUSINESS IN TORRANCE
http://DiscoverTorrance.com
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
9
ARLINGTO
N AVE.MANUEL AVE.
CRAVENS ST.
EL P
RADO
AVE
.
POST
AVE
.
GRAM
ERCY
AVE
.
ENGR
ACIA
AVE
.
MARC
ELIN
A AV
E.
EL P
RADO
AVE
.
EL P
RADO
AVE
.
SARTORI AVE.
CARSON ST.
CA
BR
ILLO
AV
E.
MU
LL
IN A
VE
.
BO
RD
ER
AV
E.
WE
ST
ER
N A
VE
.
AB
ALO
NE
AV
E.
DOUBLE ST.
TORRANCE BLVD. TORR
ANCE
BLVD
.
213TH ST.
BO
W A
VE.
214TH ST.
216TH ST.
23
813
20
10
18
25
15
19
31
6
2
4
1
12
29
28
5
11
27
16
21
30
32
14
2224
17
7
9
26
3
American
Buffalo Fire Department 1261 Cabrillo Ave.#100 1(310) 320-2332
The Crest1625 Cabrillo Ave. 2(310) 320-9347
The Depot1250 Cabrillo Ave. 3(310) 787-7501
Keegan’s Pub 1434 Marcelina Ave. 4(310) 328-3750
Red Car Brewery 1266 Sartori Ave. 5(310) 782-0222
Asian
The Flame Broiler2024 Carson St. 6(310) 618-8233
Bakery
85C Bakery Café1735 Carson St. #A 7^(310) 320-8585
The Good Cookies2081 Torrance Blvd. 8(310) 941-1426
Hamada-Ya 21515 Western Ave. 9*(310) 787-1778
Mikawaya Confectionary 21515 Western Ave. 9*(310) 320-4551
Royal Donuts1880 Carson St. #E 10(310) 320-4564
Torrance Bakery 1341 El Prado Ave. 11(310) 320-2722
Coffee and Tea
Coffee and Tea
Boba Loca 1757 Carson St. #K 7^(310) 618-1495
Lupicia21515 Western Ave. 9*(310) 618-8203
Old Torrance Coffee & Tea 1413 Marcelina Ave. 12(310) 320-6828
Delicatessen/Sandwiches
Little Shop of Mary Banh Mi2205 Torrance Blvd. #A 13(424) 558-8198
Torrance Bakery1341 El Prado Ave. 11(310) 781-9450
Torrance ProduceMarket & Deli1303 El Prado Ave. 14(310) 781-9450
Dessert
Foster’sOld Fashion Freeze 1624 Cravens Ave. 15(310) 328-1375
Get Shaved 1790 Carson St. #B 16(310) 293-2523
Hisaya Kyoto Chestnuts1757 Carson St. #F 7^(310) 328-6788
J. Sweets21515 Western Ave. 9*(310) 328-8333
Diner
Dino’s Burgers 1975 Torrance Blvd. 17(310) 320-6902
Eat at Rudy’s 1340 Post Ave. 18(310) 533-0752
Hawaiian
Back Home in Lahaina21605 Western Ave., #C 7^(310) 320-0303
Indian
AngaraIndian Restaurant2170 Torrance Blvd. 19(310) 320-9090
Japanese
Beni Tora21515 Western Ave. 9*(310) 320-8855
Bistro Beaux21605 Western Ave.#A 7̂(310) 320-5820
Daikichi Sushi21515 Western Ave. 9*(310) 782-0335
Go Squared Takoyaki& Taiyaki 21515 Western Ave. 9*(310) 782-0335
Hannosuke21515 Western Ave. 9*(310) 782-0335
Ichiban Ramen21605 Western Ave. #J 7̂
Ichimi AnnBamboo Garden1618 Cravens Ave. 21(310) 328-1323
Ise Shima21381 Western Ave.(Miyako Hotel) 20(310) 212-5111
Izakaya Hachi1880 Carson St. #A 10(310) 618-8357
Kagura 1652 Cabrillo Ave. 22(310) 787-0227
Kappo Irifune11231 Cabrillo Ave. #107 1Coming Spring 2015
Kozan Yakiniku House 1512 Cabrillo Ave. 23(310) 781-9200
Kuma Sushi Seafood Buffet1925 Carson St. 24(424) 558-8277
Manpuku Tokyo BBQ1870 Carson St. #A 25(424) 271-7830
Matsui 21605 Western Ave. #G 7̂(310) 320-2089
Mifune Restaurant 21515 Western Ave. 9*(310) 782-1382
Miyabi-Tei 21515 Western Ave. 9*(310) 533-1517
Musha Restaurant 1725 Carson St. #B 7̂(310) 787-7344
Nozomi 1757 Carson St. #L & M 7̂(310) 320-5511
Santouka Ramen 21515 Western Ave. 9*(310) 320-5511
Soba Sojibo1757 Carson St., #R & S 7̂(310) 782-7356
Teriyaki Inn1757 Carson St. #Q 7̂(310) 328-7576
Torihei1757 Carson St. #A 7̂(310) 781-9407
Yuzu1231 Cabrillo Ave. #101 1(310) 533-9898
DOWNTOWN RESTAURANT GUIDE
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
10
AERIAL MAP
VAN
NESS
AVE
NUE
SAR
TOR
I AV
ENU
E
TORRANCE BOULEVARD | 33,000 CARS PER DAY
LONG BEACH
AMERICAN HONDA MOTOR CAMPUS
HISTORICDOWNTOWN TORRANCE(SEE PAGE 9 MAP)
SAN PEDROPALOS
VERDESPORTS OF
LA & LB
SUBJECT PROPERTY
2055TORRANCE BLVD
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
11
DEMOGRAPHICS 1 Mile 3 Miles 5 Miles
POPULATION
2018 Population - Current Year Estimate 25,774 605,328 736,292
2023 Population - Five Year Projection 26,339 618,851 741,391
2010 Population - Census 24,679 584,137 728,727
2000 Population - Census 23,284 566,376 838,424
2010-2018 Annual Population Growth Rate 0.53% 0.43% 0.14%
2018-2023 Annual Population Growth Rate 0.43% 0.44% 0.14%
HOUSEHOLD INCOME
2018 Households 9,126 75,376 209,494
Under $15,000 719 7.9% 5,784 7.7% 16,521 7.9%
$15,000-$24,999 767 8.4% 5,583 7.4% 15,341 7.3%
$25,000-$34,999 680 7.5% 5,073 6.7% 14,594 7.0%
$35,000-$49,999 866 9.5% 7,352 9.8% 21,425 10.2%
$50,000-$74,999 1,745 19.1% 12,941 17.2% 34,990 16.7%
$75,000-$99,999 1,266 13.9% 10,162 13.5% 27,471 13.1%
$100,000-$149,999 1,612 17.7% 14,460 19.2% 36,353 17.4%
$150,000-$199,999 868 9.5% 7,391 9.8% 18,928 9.0%
$200,000 and Over 602 6.6% 6,630 8.8% 23,871 11.4%
2018 Average Household Income $89,916 $98,264 $106,428
2023 Average Household Income $107,487 $115,497 $124,687
2018 Median Household Income $70,783 $76,791 $76,297
2023 Median Household Income $83,460 $88,280 $87,303
2018 Per Capita Income $31,897 $34,751 $37,227
2023 Per Capita Income $37,935 $40,426 $43,256
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
BASE RENT PRO-FORMA
Occupied Space $71,604
Vacant Space $142,950
COMBINE GROSS RENT $214,554 Expenses
Taxes $31,238
Insurance $3,688
Utilities ($0.20 psf) $17,700
Janitorial ($0.10 psf) $8,850
R&M ($0.05 psf) $4,425
Total Expenses $65,900 30.7%
Vacancy Factor $10,728 5%
Management $6,437 3%
NNN Reimbursement $- 0%
YEAR 1 NOI $131,490 5.26%
FINANCIAL ANALYSIS SUMMARY
Location 2055 Torrance Blvd., Torrance, CAPrice $2,499,000Rentable Square Feet 7,375Price/Square Foot $338.85 CAP Rate - Pro-forma 5.26%Year Built 1948Lot Size 18,213Type of Ownership Fee Simple
12
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
UNIT TENANT GLA %OF GLA LEASE COMMENCE LEASE EXPIRE ANNUAL RENT RENT/SF LEASE TYPE
A 1-2 Vacant 2,984 40.46% 2/1/16 1/31/19 $89,520 $30.00 FSG
B 3-4 Muratuchi for Assembly 2,232 30.26% 8/15/18 2/15/19 $60,264 $27.00 FSG
C 5-6 Vacant 1,781 24.15% 7/1/17 6/30/20 $53,430 $30.00 FSG
C7 Henry's Dental Lab 378 5.13% 2/1/16 1/31/19 $11,340 $30.00 FSG
Total Vacant 4,765 64.61% $142,950
Total Occupied 2,610 35.39% $71,604
Total 7,375 100.00% $214,554 Remarks: Pro-Forma Lease Comparables are from Lease Comps and Current Asking Rents for the Property
Vacant Units GLA’s Are Estimations Based on Current Occupied GLA and Total Building GLA
13
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
FINANCIAL ANALYSIS
DEMOGRAPHICSAREAOVERVIEW
CONTACT: DEBT
BILL MAHER
First Vice President+1 310 363 4929 [email protected]. 01080990
W. SIMON MATTOX
Vice President, MBA+1 310 363 4809 [email protected]. 01732008
SHAHIN ADELI
Vice President +1 310 550 2576 [email protected] Lic. 01886255
© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. 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. PMStudio_September2018
2055TORRANCE BLVD
