Single Tenant Industrial / Food Investment Opportunity1407 TRUMAN STREET, SAN FERNANDO, CA
©2011, CB Richard Ellis, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
BLDG: 16,971 SFLOT: 35,935 SF
For more information, contact:
David HardingLic. 01049696T [email protected]/david.harding
Greg GeraciLic. 01004871T [email protected]/greg.geraci
Matt DierckmanLic. 01301723T [email protected]/matt.dierckman
Billy WalkLic. 01398310T [email protected]/william.walk
CB Richard Ellis Broker Lic. 00409987111 Universal Hollywood Drive27th FloorUniversal City, CA, 91608T 818.502.6700F 818.502.6798
www.cbre.com/lanorth
OVERVIEW PROPERTY SUMMARY LOCATION VALUATION CONTACT PRINT EXITLEASE vs OWNOVERVIEW
Property Features:• Excellent Freezer / Cooler Space
• 7,000 Square Foot Freezer / 550 Square Foot Cooler
• Newer Building with Excellent Ceiling Clearance
• Truck-High and Ground-Level Loading
• High Image Property with City of San Fernando Benefits
• Building Size – 16,971 SF | Lot Size – 35,935 SF
1407 TRUMAN ST, SAN FERNANDO OFFERING PRICE: $3,475,000.00
NEWER CONSTRUCTION HIGH IMAGE CLASS A COLD STORAGE IN-FILL LOCATION IN SAN FERNANDO VALLEY, CA
UNIQUE PURCHASE OPPORTUNITY
TRUMAN STREET
1407 T R U MA N S T R E E T | S A N F E R N A N D O, C A
• 16,971 Square Feet• Class A Building• Strategic Location• 32’ Clear Height• Cold and Dry Storage•USDA / FDA Approved
Food Preparation• 100% Leased to Global
Food Products Company•Dock High and Grade
Level Concrete Yard• Corner Lot with TrafficSignal
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$3,575,000
WORKMAN STREET
II 1407 TRUMAN STREET SAN FERNANDO, CA
Executive Summary
INVESTMENT HIGHLIGHTS
CBRE is pleased to present the opportunity to acquire a Class A, 16,971 square foot freezer/
cooler/dry storage building located at 1407 Truman Street in the Northeast San Fernando
Valley with immediate access to major freeways including the 5, 118, 210 and 405.
• High Quality Freezer/Cooler Facility – The Class A, 16,971 square foot facility
features excellent freezer/cooler space (7,000 SF freezer / 550 SF cooler), high clearance
(32’warehouse / 30’ cooler), newer construction and dock high and grade level loading.
• Opportunity to Increase Returns Through Cost Segregation - Due to the property’s
extensive cold storage improvements (45% of the building), there is a tremendous opportunity
to accelerate depreciation through cost segregation and dramatically increase the after-tax
cashflowandcapitalizedreturn.
• Strong Market Dynamics – This is a rare opportunity to acquire an industrial property in
thestableSanFernandoValley,apremier“in-fill”SouthernCaliforniasubmarketknown
for low vacancy rates and commanding high lease rates. The East San Fernando Valley
industrialmarkethasavacancyrateofjust0.7%asoftheendofthefirstquarter2013,
while the greater San Fernando Valley has a very low vacancy rate of just 1.5%. The San
Fernando Valley market has experienced positive net absorption in 10 of the last 11 quarters,
and with a lack of available land and steady demand, the area is poised for strong rental
growth.
Southern California cold storage warehouse space has consistently been in high demand
due to increasing population growth and consumer preference towards prepared foods,
fresh and frozen. Because of the significant and increasing costs of construction and virtually
no speculative market, cold storage warehouse vacancy in Southern California is estimated
at less than 3%. In addition, older, functionally obsolete and mechanically inefficient cold
storage properties are in need of repair and replacement. With very limited availability
and the high cost of construction, lease rates for cold storage space continue to increase
and remain strong. For these reasons, modern, highly functional, well-located cold storage
distribution facilities such as the subject property will remain in high demand.
INVESTMENT SUMMARY
FOOD INDUSTRY COLD STORAGE DEMAND
Asking Price $3,575,000
In-Place Cap Rate 6.13%
10 Year IRR (All Cash) 9.20%
10 Year IRR (Leveraged) 13.60%
NOI $219,228
Increases Annual CPI (with 5% cap)
Lease Term Expires June 30, 2016(Lease term was extended April 2013)
Guarantor Ferrarini SPA (Parma, Italy)
Tenant
Ferrarini, USA is a subsidiary of Ferrarini SPA in Parma, Italy. Ferrarini USA is an importer of fine Italian
food products such as cured meats, cheese, butter, balsamic vinegar and wine.
IIIIII
1407 Truman StreetSan Fernando, California
Location
Address 1407 Truman StreetSan Fernando, CA
Tenant Ferrarini USA
Occupancy 100%
Industrial Market San Fernando Valley
Industrial Submarket San Fernando
Parcel Number 2521-001-006
Building SizeTotal Rentable Area 16,971 SF
Land Size 0.82 Acres
Coverage 47%
Total Office SF / % 1,000 SF / 5.9%
Freezer/Cooler SF 7,000 Square Foot Freezer / 550 Square Foot Cooler
Number of Buildings 1
Building FeaturesYear Built 1996
Clear Height 32’ Warehouse / 30’ Cooler
Truck Court Depth +/- 115’ (Private)
Car Parking 20 Spaces
Dock High Doors 2 (10’x10’) and 2 (10’ x 10’) Future Doors
Ground Level Doors 1 (10’x12’) via Ramp
Zoning SFM2
Construction OverviewConstruction Type Concrete tilt-up
Roof Laminated/GLU Wood Beam
Sprinklers Yes
Electrical 800 Amps / 480 Volts / 3 Phase / 4 Wire
HVAC Office Areas
Industrial For Lease & Sale
Lease Rate/SF: $1.25 Taxes:Lease Rate/Mo: $21,214Lease Type:
$24,152, 2013Net Terms: 5-10 Years Possession 07/01/2013
1407 Truman St, San Fernando, CA 91340
*Excellent Freezer/Cooler Space**8,450 Dry Storage/7,000 SF Freezer/550 SF Cooler*
*Impressive 30'-32' Clearance Height/Newer Building**Truck High And Ground Level Loading*
*High Image Property/City of San Fernando Benefits*
16,971Available SF: Total Building SF: 16,971
CBRE-Universal City (818) 502-6700David Harding (818) 502-6731, William Walk (818) 502-6733, Arthur Rasmussen (310) 550-2564, Greg Geraci (818)502-6741
To Show: Call AgentListing Company:Agents:
$204.76Price/SF: $3,475,000Sale Price:Available SF:
A:
Dock High: Office SF / #:Ground Level Drs:
V:
Parking:Minimum SF:
Sprinklered:
Ø:
Yard:
Lot Size:
Clear Height:W:
Thomas Guide:
16,971
800
2
Ratio: 1.2:1 / Spaces: 20
1 1,000 / TBD
32480/480 3
Yes - Fenced/PavedYes
16,971
35,935 SF / 0.82 AC482-A7
4
Const Status/Yr Blt: Existing/1996 Construction Type: Tilt-upRegion: LA Northwest Specific Use: Warehouse -Zoning: SFM2 APN #: 2521-001-006
Finished Ofc Mezz: NoInclude In Avail: No
Unfinished Mezz:Include In Avail:
NoNo
Rail Service: Heat/Cool:No Unknown
Office Air: Yes Office Heat: Yes
Roof Type: Laminated/GLU Wood Beam
Restrooms: 2
Notes: Additional DH doors possible with 2 pop outs. Special Features: Paved Yard, Free Standing Building, Freezer, Cooler.
S. Workman St/Truman StCross Streets:Address:
Property/Listing/Ste #: 955962/813845/1449701 Listing Date: 01/28/2013 FTCF: CB250N000S250/AOAA
This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified itand make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy.
Single Tenant Industrial / Food Investment Opportunity1407 TRUMAN STREET, SAN FERNANDO, CA
©2011, CB Richard Ellis, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
BLDG: 16,971 SFLOT: 35,935 SF
For more information, contact:
David HardingLic. 01049696T [email protected]/david.harding
Greg GeraciLic. 01004871T [email protected]/greg.geraci
Matt DierckmanLic. 01301723T [email protected]/matt.dierckman
Billy WalkLic. 01398310T [email protected]/william.walk
CB Richard Ellis Broker Lic. 00409987111 Universal Hollywood Drive27th FloorUniversal City, CA, 91608T 818.502.6700F 818.502.6798
www.cbre.com/lanorth
OVERVIEW PROPERTY SUMMARY LOCATION VALUATION CONTACT PRINT EXITLEASE vs OWNOVERVIEW
Property Features:• Excellent Freezer / Cooler Space
• 7,000 Square Foot Freezer / 550 Square Foot Cooler
• Newer Building with Excellent Ceiling Clearance
• Truck-High and Ground-Level Loading
• High Image Property with City of San Fernando Benefits
• Building Size – 16,971 SF | Lot Size – 35,935 SF
1407 TRUMAN ST, SAN FERNANDO OFFERING PRICE: $3,475,000.00
IV 1407 TRUMAN STREET SAN FERNANDO, CA
Executive Summary
SITE PLAN
Drive-in Door
Dock Door
TRUMAN STREET
WO
RKM
AN S
TREE
T
1407 Truman16,971 SF
LoadingRamp
Equip/Mech
Ramp
Office
Gate
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VV
1407 Truman StreetSan Fernando, California
Single Tenant Industrial / Food Investment Opportunity1407 TRUMAN STREET, SAN FERNANDO, CA
©2011, CB Richard Ellis, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
BLDG: 16,971 SFLOT: 35,935 SF
For more information, contact:
David HardingLic. 01049696T [email protected]/david.harding
Greg GeraciLic. 01004871T [email protected]/greg.geraci
Matt DierckmanLic. 01301723T [email protected]/matt.dierckman
Billy WalkLic. 01398310T [email protected]/william.walk
CB Richard Ellis Broker Lic. 00409987111 Universal Hollywood Drive27th FloorUniversal City, CA, 91608T 818.502.6700F 818.502.6798
www.cbre.com/lanorth
OVERVIEW PROPERTY SUMMARY LOCATION VALUATION CONTACT PRINT EXITLEASE vs OWNLOCATIONMAP
VI 1407 TRUMAN STREET SAN FERNANDO, CA
Executive Summary
The site is located in the heart of the San Fernando Valley, one of the most
populous areas in Southern California with 1.8 million residents, almost the size
of the Houston MSA, making it the nation’s sixth-largest municipality. Covering
over 365 square miles of Los Angeles County, the Greater San Fernando Valley
isdefinedbySantaClaritatothenorth,Venturatothewest,theSantaMonica
and Hollywood mountains to the south and Pasadena and Angeles National
Forest to the east. Centralized location, close proximity to high-end residential
communities and availability of both high skilled and unskilled labor will continue
to contribute to future growth and development.
The Valley provides employers with a strong labor pool of both highly skilled and
affordable work force. The area also draws employees from the surrounding
Antelope, Santa Clarita and Simi Valleys. The Valley’s employment base is surging
with commercial vacancy rates down in the single digits, and property values rising.
One of the most important elements in the Valley is its transportation infrastructure.
The Valley has approximately 75 miles of freeways including the 5, 405, 170, 134,
210, 118, and 23. The San Fernando Valley is also serviced by a Metrolink train
service, the Metro Redline Subway, and the recently completed Metro Orange Line.
These arteries of commerce connect retail businesses, consumers, manufacturers
and service providers to one another, as well as providing links from the Valley
to the rest of Southern California.
SAN FERNANDO VALLEY AREA AND MARKET OVERVIEWThe San Fernando Valley industrial market has some of the strongest dynamics in the
Los Angeles Basin. The overall industrial base for the Greater San Fernando Valley
is approximately 172 million square feet, and consists of the San Fernando Valley,
the Santa Clarita Valley, and the Antelope Valley. The vacancy rate has decreased
to 1.5% in the 1st quarter of 2013 (down 70 basis points year-over-year), which
shows signs of a tempered recovery in one of the strongest markets in Southern
California. Average asking lease rates Valley wide are $0.67 per square foot net
per month (compared to $0.55 in Greater Los Angeles). The availability rate is
only 7.1%. With an increase in demand from users in all size ranges, and with the
vast majority (over 70%) of existing product being functionally obsolete due to low
clear height and poor trucking logistics, the Greater San Fernando Valley vacancy
is slowly stabilizing. As demand increases, vacancy is expected to experience more
downward pressure due to the lack of available land for future development.
There are many factors that continue to contribute to the sustained economic growth
of the stable and consistent Greater San Fernando Valley market:
•Densedemographicswithnearly1.8millionresidentsandastronglaborpool
•Extremelylowvacancyrate(just1.5%)especiallyforClass“A”buildings
•Strongnetabsorption(10outofthepast11quartershaverecordedpositive
net absorption)
•Virtuallynoavailablelandfordevelopmentandlimitednewconstruction
•ExcellentfreewayaccesstomultiplemajorinterstatesandservicedbyBobHope
Airport in Burbank
•Sale/Useractivitystronghowever,extremelackofproduct
© 2013 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. 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. 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.
CAPITAL MARKETS EXPERT
Barbara EmmonsVice ChairmanLic. 00969169T. +1 213 613 [email protected] S. Grand Ave., 12th FloorLos Angeles, CA 90071
CAPITAL MARKETS I PRIVATE CAPITAL GROUP
Mike KendallSenior Vice PresidentLic. 01895979T. +1 909 418 [email protected] Inland Empire Blvd, Suite 100Ontario, CA 91764
LOCAL MARKET EXPERTS
David M. HardingSenior Vice PresidentLic. 01049696T. +1 818 502 [email protected] Universal Hollywood Drive, 27th FloorUniversal City, CA 91608
Greg GeraciSenior Vice PresidentLic. 01004871T. +1 818 502 [email protected] Universal Hollywood Drive, 27th FloorUniversal City, CA 91608
COLD STORAGE EXPERT
Art RasmussenSenior Vice PresidentLic. 00918691T. +1 310 550 [email protected] Century Park East, Suite 700Los Angeles, CA 90067