NNN Leased Investment Opportunity

1 7 0ARROW HIGHWAY

SAN DIMAS • CALIFORNIA

OFFERING MEMORANDUMNNN Leased Investment Opportunity

2 170 e. arrow highway | san d imas • Cal ifornia

Executive summary

Lee & Associates® – Pasadena, Inc. have been retained as the exclusive agents to list the property located at 170 E. Arrow Highway in San Dimas, California for sale. The information contained in the following Offering Memorandum is proprietary and confidential.

This Offering Memorandum has been prepared to provide unverified summary information to prospective purchasers. The Brokers have not made any investigation and makes no warranty or representation regarding the information presented herein, including, but not limited to: income, expenses, size, projections, improvements, environmental issues, leases, general condition and compliance with State and Federal regulations.

The information contained herein has been obtained from third party sources that we believe to be reliable. However, it is the Buyer’s sole responsibility to verify all information and perform all due diligence. Lee & Associates® – Pasadena, Inc. Commercial Real Estate Services make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.

Confidentiality agreement & disclaimertable of contents

01 Investment Overview

02 Property Overview

03 Area Overview

04 Market Overview

05 Financials

170 e. arrow hwy | san d imas • cal ifornia

CHRIS JOHNSONSenior Vice President626.240.2786 [ direct ][email protected]. No. 01934154

Lee & Associates® — Pasadena, Inc.Corporate ID# 02059558155 N. Lake Avenue, Suite 430Pasadena, CA 91101

626.535.9888 [ main ]


Executive summary

01Investment Overview

170 e. arrow highway | san d imas • cal ifornia


Executive summaryExecutive summary

Lee & Associates-Pasadena, Inc. is pleased to present the exciting opportunity to purchase 170 E Arrow Highway; a rare, single tenant triple net lease investment located in the Arrow Highway Corporate Office Park in San Dimas, CA. Investors will benefit from a 100% occupied building with a financially strong tenant and a lease term running through June 2023. The Lease in place includes annual increases as well as the tenant paying for all association fees in the project. Located near the corner of Arrow highway and San Dimas Avenue, the building benefits from high traffic exposure, immediate access to the S-57 and I-210 Freeways and exceptional access to retail and dining amenities and Downtown San Dimas.

PROPERTY ADDRESS 170 E. Arrow Highway, San Dimas CA 91773

ASKING PRICE $3,250,000 ($281.17 PSF)

INTEREST OFFERED Fee Simple

NET RENTABLE AREA ±11,559 RSF

IN-PLACE OCCUPANCY 100%

CAP RATE 5.79%

Investment Overview 4


Executive summary

CLASS B STABILIZED OFFICE INVESTMENT WITH LONG-TERM STABLE CASH FLOW POTENTIAL Excellent opportunity to acquire 170 E Arrow Highway; a rare, single tenant triple net lease investment location in the Arrow Highway Corporate Office Park in San Dimas, CA. with exceptional accessibility to the Orange (S-57) freeway and Foothill (I-210) freeway, one of the most traveled freeways in Southern California. The central location allows for easy travel to Downtown Los Angeles, Long Beach, San Gabriel Valley and Orange County. The property totals ±11,559 square feet and is currently 100% leased to a single, long standing tenant.

The building is located in the Arrow Highway Professional Office Park, a 2006 constructed project which showcases well maintained building exteriors, parking, and landscaping. In addition to the modern improvements on the interior of the space, the tenant will be contributing their own capital into improving the interior of the building estimated to take place in Q3 and Q4 of 2019.

Functional and efficient, this office building currently offers a well-functioning office plan as well as a roll up door for large installations/deliveries.

investment highlights

LOW MAINTENANCE OPPORTUNITY FOR ANY INVESTOR The new owner will benefit from the tenant’s investment into capital improvements to the buildings, as well as a long-standing tenancy track record. The city of San Dimas has experienced a rapid vacancy absorption in the previous 24 months, with over 100,000 square feet of vacancy being tenanted. The current low vacancy will naturally secure healthy tenancy in the building as well as an improving lease rate.

DENSE IN-FILL LOCATIONThe property is situated in an attractive, dense in-fill location that restricts future competition and creates high barriers to entry. Due to strong tenant demand and a shortage of development sites in the area, this property lies in a tight office real estate market.

170 E. Arrow Highway represents a unique opportunity to purchase a free-standing office building occupied by a single triple net tenant with high credit!


Executive summary

02Property Overview



Executive summary

LOCATIONSouth center location in Arrow Highway Corporate Center as Building L

PARCELAssessor’s Parcel Number: 8382-004-055Size: ±11,761 sf

PARKING4 per 1,000 psf

LAND USE Office Building

ZONING M1-MCG-C (Commercial, Manufacturing)

ACCESS The property has three points of access east on Walnut St, west on San Dimas Avenue and north on Arrow Highway

IMPROVEMENTSThis offering includes ±11,559 square feet consisting of one two-story, single-tenant professional office building

AGE 13 years (built in 2006)

CONSTRUCTIONTilt Up

LANDSCAPECommon

Property description

arro

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citrus ranch rd.

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southern pacific railroad


Executive summarysite plan

Property Overview

arrow highway

walnut st.

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Executive summaryPROPERTY PHOTOS






Executive summary

03Area Overview



Executive summary

GOLD LINE STATION @ DOWNTOWN SAN DIMASHistoric downtown San Dimas will have a new light rail station located at the western terminus of Bonita Avenue, the City’s main street. A new plaza will include a public parking garage lined with commercial and retail, the station and becomes a gateway into the downtown. Once completed, a trip from San Dimas to Pasadena will take about 27 minutes and further to downtown Los Angeles will take approximately 56 minutes.

AMENITY-RICH CORRIDOR Surrounded by world-class amenities, including the neighboring San Dimas Plaza, with more than two dozen retailers, San Dimas Marketplace, Foothill Village, and Glendora Marketplace Shopping Center. Nearby attractions include the Los Angeles County Fair, Raging Waters amusement park, The Claremont Colleges and Cal Poly Pomona.

STRATEGIC LOCATIONThis area of San Dimas is the convergent point for Los Angeles County, Orange County and the Inland Empire making access very convenient. Located along the 57 and 210 freeways with Gold Line Metrolink expansion underway, this area is a major gateway city in the San Gabriel Valley.

san dimas, ca

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CORONA

EASTVALE

ONTARIO

POMONA

CHINOHILLS

CHINO

YORBALINDA

LA HABRA

FONTANARIALTO

LOMALINDA

SANBERNARDINO

JURUPAVALLEY

RANCHOCUCAMONGA

REDLANDS

HIGHLAND

HESPERIA

ADELANTO

SANTACLARITA

PALMDALE

CALABASAS

BURBANK

NORTHRIDGE

GRANADAHILLS

VAN NUYS

BEVERLYHILLS

GLENDALE

LOS ANGELES

CITY OFINDUSTRY

WALNUTDIAMOND

BARWHITTIER

MONTEBELLO

ANAHEIM

GARDENGROVE

HUNTINGTONBEACH COSTA

MESA

NEWPORTBEACH

ORANGESANTA

ANA

IRVINE

LAKEFOREST

LAGUNANIGUEL

MISSIONVIEJO

SAN JUANCAPISTRANO

SAN CLEMENTE

LAKEELSINORE

MENIFEE

MURRIETA

TEMECULA

FULLERTONBUENAPARK

LAKEWOOD

COMPTON

LONGBEACH

REDONDOBEACH

SANTAMONICA HUNTINGTON

PARKINGLEWOOD

EL MONTE

ROSEMEAD

ANGELESNATIONAL FOREST

- SAN GABRIELMOUNTAINS

MT. SANANTONIO

LAKE MATTHEWS

PORT OFLOS ANGELES

ONTARIOINT’L AIRPORT

PORT OFLONG BEACH

PASADENA

WESTCOVINA

AZUSA

UPLAND

VICTORVILLE

RIVERSIDE MORENO VALLEY

PERRIS

LOS ANGELESINT’L AIRPORT

local economyThe economy of San Dimas, CA employs 16.2k people. The largest industries in San Dimas, CA are Health Care & Social Assistance (2,577 people), Educational Services (1,722 people), and Retail Trade (1,634 people), and the highest paying industries are Public Administration ($90,685), Utilities ($80,000), and Information ($79,609).

Median household income in San Dimas, CA is $81,242. Males in San Dimas, CA have an average income that is 1.26 times higher than the average income of females, which is $57,252. The income inequality in San Dimas, CA (measured using the Gini index) is 0.5, which is higher than the national average.

Rendering of gold line station plaza

downtown san dimas bonelli park

regional map

13

raging waters


Executive summaryarea overview

demographics

2019 Population

Growth 2019 - 2024

Average Household Income

# of Businesses

# of Employees

1 MILE 3 MILES 5 MILES

13,987 100,363 312,709

4.45% 0.90% 1.30%

$82,397 $100,910 $92,524

877 3,851 11,531

10,691 43,387 110,002

Transportation corridor

The City of San Dimas is a suburb of Los Angeles nestled along the foothills of the San Gabriel Mountains, about 28 miles east/northeast of Downtown Los Angeles and north of the Pacific Ocean. The city has a total area of 15.4 square miles.

San Dimas runs along and southward from historic U.S. Route 66, Other major arteries include Arrow Highway (east–west) and San Dimas Avenue (north–south). Los Angeles International Airport (LAX) is located approximately 46 miles west, and the Ontario International Airport is approximately 15 miles to the east. The Foothill Freeway (I-210) connects the town to Pasadena and the San Fernando Valley, with California State Route 57 connecting to Orange County and the beaches. The Foothill Gold Line from Glendora to Montclair will add new light rail stations to the Metro Gold Line system in the cities of Glendora, San Dimas, La Verne, Pomona, Claremont and Montclair. The 12.3-mile extension will connect to many regional destinations. Foothill Transit provides local and regional bus and commuter service from many street bus stops and two commuter parking lots located in Via Verde and in the downtown area.

top attractions

RAGING WATERSRaging Waters Los Angeles is California’s best and largest waterpark! This 60-acre waterpark in the Los Angeles area has been recognized by USA Today as a “Top 10 Water Park” and is home to more than 50 world-class rides, slides and several attractions for all ages to enjoy, including Aqua Rocket, the state’s only hydromagnetic water coaster.

FRANK G. BONELLI PARKThe 2,220 acres of park facilities surrounding the lake offer a variety of recreational activities: family and group picnicking, sight seeing, hiking, horseback riding, jogging, nature walks, recreational vehicle (RV) and group camping, a water-theme park, calf-roping, bird watching, golfing and bicycling.

PUDDINGSTONE LAKE250 acre man-made reservoir offering activities to include fishing, swimming, sailing, jet skiing, and wind surfing. There is a launching area for boats on the north shore.

Area Overview

PROPERTY


Executive summary

170 E. Arrow Hwy

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ARROW HIGHWAY

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AERIAL LOCATION

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CITRUS RANCH RD.

ARROW HIGHWAY CORPORATE CENTER

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Executive summaryLOS ANGELES COUNTY

• Los Angeles consists of five counties; Los Angeles, Riverside, Orange, Ventura and San Bernardino.

• Los Angeles County has a diverse population and economic base with a number of Fortune 500 companies headquarters in the region including Healthnet, Qualcomm, Avery Dennison and many more.

• With a population of more than ten million people, Los Angeles County is the most populous county in the United States. It’s population is larger than that of 40 individual U.S. states with 88 incorporated cities and many unincorporated areas totaling 4,751 square miles.

• Los Angeles County is commonly associated with the entertainment and digital media industry; all six major film studios—Paramount Pictures, 21st Century Fox, Sony, Warner Bros., Universal Pictures, and Walt Disney Studios—are located within the county.

• The county is home to more than one quarter of all California residents and is one of the most ethnically diverse counties in the U.S. As a city, the metropolitan area is the second largest in the country. Thirty of LA’s suburbs have population of 80,000 or more. LA County is very diverse, with a population from over 140 countries and the largest Latin-American and Asian -American population of any US city.

• Los Angeles County enjoys the most diverse typography; it borders 70 miles of coast on the Pacific Ocean and encompasses mountain ranges, valleys, forests, islands, lakes, rivers, and desert. The Los Angeles River, Rio Hondo, the San Gabriel River and the Santa Clara River flow in Los Angeles County, while the primary mountain ranges are the Santa Monica Mountains and the San Gabriel Mountains.

• Los Angeles County boasts numerous major universities and colleges to include UCLA, USC, Pepperdine, Loyola Marymount University and five California State Universities.

Area Overview


Executive summary

04Market Overview



Executive summarymarket overview

OFFICE MARKET OVERVIEW

Located at 170 E Arrow Highway Avenue, this building provides local, regional, national and international tenants with an opportunity to be located within an efficient and well-positioned Class B office building.

The building enjoys prime exposure on one of the area’s main thoroughfares and is well located with an abundant parking ratio, restaurant and retail amenities 2.5 miles north and near immediate access to the Foothill (I-210), and Orange (S-57) Freeways.

The only Single-Tenant, Triple Net lease investment available in San Dimas totaling 11,559 square feet, this property offers any future tenants a highly improved space with potential for creative open office suites, as well as a roll up door access for large deliveries/installations.

The East San Gabriel Valley Market offers a strong local economy supported by both the Los Angeles and Inland Empire markets. This office market witnessed a steady increase in lease rates during the past four years with rates at $1.68 per square foot up to $1.85 per square feet as an aggregate across all classes along with positive net absorption and decreases in vacancy since 2013. The overall economy continued to see growth through 2015 and this trend is continuing into the 4th quarter of 2016. The office market continues to gain ground as the market continues to see solid growth and expansion. Job creation and innovation with remain the key to increased office demand.

EAST SAN GABRIEL VALLEY MARKET OVERVIEW

A Major Urban AreaCovering approximately 110 square miles divided into over 20 neighborhoods with a little over 1.19M in population, Los Angeles Counter is defined along the I-5 freeway, bordered by State Route 60 to the north, and S-57 to the east.

Infrastructure, Transportation, Unparalleled AccessSuperb freeway accessibility, the East San Gabriel Valley market is well serviced by four major freeways, A Metrolink rail line and three airports.

SAN DIMAS OFFICE SUBMARKET OVERVIEW

An Established Office MarketWith just under two million square feet, San Dimas represents almost 30% of the East San Gabriel Valley office base and experienced only 6.7% of direct vacancy during First Quarter 2019.

Class B average asking lease rate for San Dimas is $2.10 per square foot, per month, on a full service gross basis.

Limited SupplyThe Southeast Los Angeles office market has strong barriers to entry with little room for infill and no new office developments slated for commerce.

1,711,067 sf 99TOTAL SAN DIMAS OFFICE MARKET

OFFICE BUILDINGS IN SAN DIMAS

EAST SAN GABRIEL VALLEY

Market Overview


Executive summary

05Financials



Executive summary

Summary Property Summary

Price: $3,250,000 $6,550,000 Building Size SF 11,559 Year Built 2006

Current CAP: 5.79% Parking Ratio 4.00 Elevator

Approx. Age: 2006 Approx. Gross RSF: 11,559

Price per Gross RSF: $281.17 $566.66

Estimated Annual Operating Data Summary of Rental Income

Scheduled Gross Income: $188,263 Current Annual Rent: $188,263 Annual Price Per SF: $16.29

Gross Operating Income: $188,263 Monthly Price Per SF: $1.36 NNN Less Expenses: Net Operating Income: $188,263

financial summary


Executive summary local market investment advisor

CHRIS JOHNSONSenior Vice President626.240.2786 [ direct ][email protected]. No. 01934154

Lee & Associates® — Pasadena, Inc.Corporate ID# 02059558155 N. Lake Avenue, Suite 430Pasadena, CA 91101

626.535.9888 [ main ]

Lee-Pasadena.com

© 2019 Lee & Associates, Inc. The information contained in this document has been obtained from sources believed reliable. While Lee & Associates, Inc. does not doubt its accuracy, Lee & Associates, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

1 7 0ARROW HIGHWAY

SAN DIMAS • CALIFORNIA

Date post:	15-Apr-2022
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