Institutional-Quality Office Building | 90% Leased ......Security 8,784 SF Yellow Box Corporation...

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JANUARY 2020 Institutional-Quality Office Building | 90% Leased | 121,092 SF $32,600,000 | $270 PSF | 6.00% Cap Rate corporate plaza brea ORANGE COUNTY, CALIFORNIA EXECUTIVE SUMMARY

Transcript of Institutional-Quality Office Building | 90% Leased ......Security 8,784 SF Yellow Box Corporation...

Page 1: Institutional-Quality Office Building | 90% Leased ......Security 8,784 SF Yellow Box Corporation 15,414 SF Sedgwick Claims Management 20,430 SF Coury & Buehler 13,980 SF % of Property

JANUARY 2020

Institutional-Quality Office Building | 90% Leased | 121,092 SF$32,600,000 | $270 PSF | 6.00% Cap Rate

corporate plazabrea

ORANGE COUNTY, CALIFORNIA

EXECUTIVE SUMMARY

Page 2: Institutional-Quality Office Building | 90% Leased ......Security 8,784 SF Yellow Box Corporation 15,414 SF Sedgwick Claims Management 20,430 SF Coury & Buehler 13,980 SF % of Property

the offeringNewmark Knight Frank (NKF), as exclusive advisor, is pleased to present the exceptional, investment opportunity to acquire Brea Corporate Plaza (the Property), an institutional-quality, multi-tenant office building totaling 121,092 rentable square feet located in Brea, California.

Brea Corporate Plaza is a compelling opportunity to acquire a Class A office building at pricing well below estimated replacement cost, with the ability to enhance returns through rolling in-place tenants to market rents upon lease expiration (mark-to-market play) as well as the lease up of remaining vacancy.

The Property, built in 1982 and renovated in 2018, offers tenants contemporary interior finishes, ample and convenient surface parking, high corporate identity, and abundant walkable retail amenities. Brea Corporate Plaza is located within walking distance to the brand new, Village at La Floresta retail center which consists of more than 20 stores and restaurants, including Whole Foods Market, Slapfish, Urban Plates, Mendocino Farms, Capital Noodle Bar and Starbucks, to name a few.

This opportunity is being offered priced at $32,600,000 for the fee-simple interest in the building and land thereunder.

corporate plazabrea

3Stories

PROPERTY SUMMARY

3230 East Imperial Hwy Brea, CA 92821Address

121,092 SFRentable Area (BOMA 2017)

262,667 SF (6.03 Acres)Parcel Size

±477Surface Parking Spaces

336-531-22APN

±4.0/1,000 SFSurface Parking Ratio

1982/2018Year Built/Renovated

3Elevators

90%Occupancy

Page 3: Institutional-Quality Office Building | 90% Leased ......Security 8,784 SF Yellow Box Corporation 15,414 SF Sedgwick Claims Management 20,430 SF Coury & Buehler 13,980 SF % of Property

OFFERING SUMMARY

Fee-SimpleInterest Offered

$270Price PSF

$32,600,000Offering Price

6.00%In-Place Cap Rate

8.05%Year 3 Cap Rate (Fully Stabilized)

15.10%Year 3 Leveraged Cash-on-Cash Return (Fully Stabilized)

FINANCIAL SUMMARY

$2.33 PSF FSGAverage In-Place Rents

$2.60 PSF FSGMarket Rents

±11%Average In-Place Rents Below Market

±$1,961,556In-Place NOI

±3.7 YearsWeighted Average Lease Term Remaining

10%Vacancy

20Total Tenants

±$2,625,503Fully Stabilized (Year 3) NOI

Page 4: Institutional-Quality Office Building | 90% Leased ......Security 8,784 SF Yellow Box Corporation 15,414 SF Sedgwick Claims Management 20,430 SF Coury & Buehler 13,980 SF % of Property

MAJ

OR T

ENAN

T SU

MM

ARY

GSA - Social Security8,784 SF

Yellow Box Corporation15,414 SF

Sedgwick Claims Management20,430 SF

Coury & Buehler13,980 SF

% of Property17%13%12%7%

Ridgeline Telecom15,560 SF

13%

Page 5: Institutional-Quality Office Building | 90% Leased ......Security 8,784 SF Yellow Box Corporation 15,414 SF Sedgwick Claims Management 20,430 SF Coury & Buehler 13,980 SF % of Property

investment highlightsRARE, INSTITUTIONAL-QUALITY, MULTI-TENANT OFFICE BUILDINGBrea Corporate Plaza is a Class A, office building featuring abundant and free surface parking (±4.0/1,000 RSF), large window lines, tall ceiling heights, above-standard floor plates, and high corporate identity. The Property has been recently renovated with new lobbies, corridors, restrooms, landscaping and exterior paint. Office buildings of this size and quality rarely come to market, especially in the highly sought-after North Orange County office submarket, which boasts a direct office vacancy rate of only 7.6%.

STABLE IN-PLACE TENANCY WITH TREMENDOUS UPSIDEThe Property is currently 90% leased with 62% of the rental stream consisting of the five largest tenants (Sedgwick Claims, Coury & Buehler, Ridgeline Telecom, Yellow Box Corp. and GSA | Social Security) which provides a short term secure and stable income stream. Investment upside can be realized as 44% of the rental stream expires in the first three years, allowing an investor to quickly roll in-place tenants to market rents. The average current in-place rents are approximately 11% below market. Further upside can be achieved by the lease-up of the remaining vacancy (11,992 square feet).

Page 6: Institutional-Quality Office Building | 90% Leased ......Security 8,784 SF Yellow Box Corporation 15,414 SF Sedgwick Claims Management 20,430 SF Coury & Buehler 13,980 SF % of Property

ROBUST OFFICE MARKET FUNDAMENTALSFueled by increased tenant demand, the North Orange County office submarket has posted multiple years of positive net absorption and multiple quarters of positive rent growth. Currently, the office submarket vacancy rate stands at only 7.6%, one of the lowest vacancy rates in all of Southern California. Pent-up tenant demand and low vacancy will feed upward pressure on both rental rates and value appreciation, as the Property is currently valued well below its estimated replacement cost of $475 per square foot and well below prior peak market sale comparables.

OPPORTUNITY TO BOOST ATTRACTIVE RETURNS WITH ACCRETIVE FINANCINGThe Property is being offered free and clear of existing debt, allowing an investor to take advantage of today’s low interest rate environment and aggressive debt markets to boost already attractive returns. An investor has the ability to acquire up to 70% LTV financing and achieve a double-digit leveraged cash-on-cash return upon stabilization in Year 3.

SURROUNDED BY EXPANSIVE AMENITIES & NEW HOUSINGBrea Corporate Plaza is located within walking distance to the brand new, Village at La Floresta retail center which consists of more than 20 stores and restaurants including Whole Foods Market, Slapfish, Urban Plates, Mendocino Farms, Capital Noodle Bar and Starbucks, to name a few. Additionally, a short driving distance away are Brea Union Plaza, Imperial East Shopping Center and the Brea Mall, providing an abundance or retail and restaurant amenities. Within walking distance is a multitude of housing options including new apartments and executive housing. The Pearl at La Floresta is a brand new apartment community consisting of 204 units which was completed in 2019 and the average home value within the Brea city limits is $726,600, according to Zillow—well above the national average.

Page 7: Institutional-Quality Office Building | 90% Leased ......Security 8,784 SF Yellow Box Corporation 15,414 SF Sedgwick Claims Management 20,430 SF Coury & Buehler 13,980 SF % of Property

DIAMOND DIAMOND BARBAR

East Imperial Highway

East Imperial Highway

LA HABRALA HABRA

57

BREABREA

South Kraemer Boulevard

South Kraemer Boulevard

Valencia AvenueValencia Avenue

PEARL LA PEARL LA FLORESTA FLORESTA (multi-family)(multi-family)

BREA MALLBREA MALL

IMPERIAL EAST SHOPPING CENTERIMPERIAL EAST SHOPPING CENTER

BREA UNION PLAZABREA UNION PLAZA

VILLAGE AT LA FORESTAVILLAGE AT LA FORESTA

corporate plazabrea

Page 8: Institutional-Quality Office Building | 90% Leased ......Security 8,784 SF Yellow Box Corporation 15,414 SF Sedgwick Claims Management 20,430 SF Coury & Buehler 13,980 SF % of Property

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

JANUARY 2020

Local Market ContactsRICK WARNERSenior Vice [email protected] CA RE Lic. #00645389

CHIP WARNERFirst Vice President [email protected] RE Lic. #01888851

TAYLOR FRIENDVice [email protected] CA RE Lic. #01885394

Financing ContactsDAVID MILESTONEVice [email protected] CA RE Lic. #01515842

BRETT GREENSenior Managing Director [email protected] RE Lic. #01892016

corporate plazabreaInstitutional Sales ContactsKEVIN SHANNONCo-Head, U.S. Capital Markets 310.491.2005 [email protected] CA RE Lic. #00836549

BRANDON WHITESenior [email protected] RE Lic. #01977278

PAUL JONESExecutive Managing Director 949.608.2083 [email protected] RE Lic. #01380218

BRUNSON HOWARDExecutive Managing [email protected] RE Lic. #01793925

Private Capital ContactsSEAN FULPExecutive Managing Director [email protected] CA RE Lic. #01389064

MARK [email protected] RE Lic. #02033871

MICHAEL [email protected] CA RE Lic. #01983788


TEMA. Bass Clarinet in Bb for VIOLONCELLO. · p VAR.XII. e dolce f sempre staccato p sf sf sf cresc. sf p sf sf cresc, sf p p cresco sf p cresc. sf sf p dolee p cresc. f p f f pp

TEMA. Bass Clarinet in Bb for VIOLONCELLO. · p VAR.XII. e dolce f sempre staccato p sf sf sf cresc. sf p sf sf cresc, sf p p cresco sf p cresc. sf sf p dolee p cresc. f p f f pp

SCIORTINO RANCH NEW RETAIL - LoopNet€¦ · SCIORTINO RANCH LOCAL COMMERCIAL DEVELOPMENTS 170,262 SF 20,721 SF 29,102 SF 80,000 SF 25,916 SF 460,000 SF 94,000 SF 99,800 SF 3,527

SCIORTINO RANCH NEW RETAIL - LoopNet€¦ · SCIORTINO RANCH LOCAL COMMERCIAL DEVELOPMENTS 170,262 SF 20,721 SF 29,102 SF 80,000 SF 25,916 SF 460,000 SF 94,000 SF 99,800 SF 3,527

MARION DIEHL · 1 first floor plan color 449 sf staff 5763 sf gym 1590 sf fitness 1416 sf multi-purpose 225 sf kitchen 332 sf mech 395 sf pump 267 sf elec 375 sf storage 118 sf storage

MARION DIEHL · 1 first floor plan color 449 sf staff 5763 sf gym 1590 sf fitness 1416 sf multi-purpose 225 sf kitchen 332 sf mech 395 sf pump 267 sf elec 375 sf storage 118 sf storage

Minnesota ISD #659 – Northfield Public SchoolsAug 12, 2019  · design august 12, 2019 design development 1,060 sf 1,060 sf 750 sf 750 sf 3,620 sf 1,900 sf 3,160 sf 1,380 sf 6,440

Minnesota ISD #659 – Northfield Public SchoolsAug 12, 2019  · design august 12, 2019 design development 1,060 sf 1,060 sf 750 sf 750 sf 3,620 sf 1,900 sf 3,160 sf 1,380 sf 6,440

CHAMPAIGN, IL · 1,392 SF 1,440 SF 3,118 SF 3,000 SF 1,600 SF 2,170 SF 2,110 SF 2,281 SF 4,755 SF 2,229 SF 3,670 SF Leased Ultimate Tan Pancake House Banquet Center Smoothie King

CHAMPAIGN, IL · 1,392 SF 1,440 SF 3,118 SF 3,000 SF 1,600 SF 2,170 SF 2,110 SF 2,281 SF 4,755 SF 2,229 SF 3,670 SF Leased Ultimate Tan Pancake House Banquet Center Smoothie King

...LEASED 24,960 SF LEASED 29,252 SF LEASED 35,972 SF 48,063 SF BUILDING 2 77,315 SF vailable BUILDING 1 50,684 SF 14,712 SF vailable 41,557 SF BUILDING 3 66,517 SF vailable

...LEASED 24,960 SF LEASED 29,252 SF LEASED 35,972 SF 48,063 SF BUILDING 2 77,315 SF vailable BUILDING 1 50,684 SF 14,712 SF vailable 41,557 SF BUILDING 3 66,517 SF vailable

Crossroads at Taylorsville€¦ · REDWOOD RD DRIVE THRU DRIVE THRU 22,900 SF 14,124 SF GROUND LEASE 12,000 SF 44,986 SF 10,450 SF 19.3' 13,500 SF 1,200-14,000 SF 7,476 SF 1,200 SF

Crossroads at Taylorsville€¦ · REDWOOD RD DRIVE THRU DRIVE THRU 22,900 SF 14,124 SF GROUND LEASE 12,000 SF 44,986 SF 10,450 SF 19.3' 13,500 SF 1,200-14,000 SF 7,476 SF 1,200 SF

SUITE SF AVAILABLE BLDG. CONTIGUOUS RENT (FULL SERVICE) · 2018. 11. 1. · 210 3,000 SF 5,096 SF $25.00 / SF 600 6,625 SF 14,427 SF $25.00 / SF 300 10,000 SF 21,596 SF $25.00 / SF

SUITE SF AVAILABLE BLDG. CONTIGUOUS RENT (FULL SERVICE) · 2018. 11. 1. · 210 3,000 SF 5,096 SF $25.00 / SF 600 6,625 SF 14,427 SF $25.00 / SF 300 10,000 SF 21,596 SF $25.00 / SF

AC HOTEL SAN RAFAEL · 83 '1 7 kitchen 834 sf breakfast 377 sf boh 331 sf admin 350 sf gm 83 sf library 524 sf lounge fle 965 sf space fitness 1197 sf lounge 775 sf bar 726 sf mens:

AC HOTEL SAN RAFAEL · 83 '1 7 kitchen 834 sf breakfast 377 sf boh 331 sf admin 350 sf gm 83 sf library 524 sf lounge fle 965 sf space fitness 1197 sf lounge 775 sf bar 726 sf mens:

Butterfield Office Plaza - images4.loopnet.com · 4,362 sf 217n 7,187 sf 301n, 305n, 308n 10,193 sf 312e 2,520 sf 335e 725 sf 301e 2,762 sf 300c 651 sf 307e 1,804 sf 310s 2,597 sf

Butterfield Office Plaza - images4.loopnet.com · 4,362 sf 217n 7,187 sf 301n, 305n, 308n 10,193 sf 312e 2,520 sf 335e 725 sf 301e 2,762 sf 300c 651 sf 307e 1,804 sf 310s 2,597 sf

your everyplace · 2021. 6. 23. · aveda face value salon 3,500 sf 1,583 sf 1,880 sf 2,400 sf 2,780 sf 2,020 sf 3,225 sf 4,048 sf altar’d state 5,858 sf 7,100 sf 66,429 sf 5,766

your everyplace · 2021. 6. 23. · aveda face value salon 3,500 sf 1,583 sf 1,880 sf 2,400 sf 2,780 sf 2,020 sf 3,225 sf 4,048 sf altar’d state 5,858 sf 7,100 sf 66,429 sf 5,766

BAY SHORE, NY · PENATAQUIT DRIVE existing breezeway barber 3,150 sf 21,335 sf 25,444 sf 17,000 sf 620sf 1,500 sf 16,708 sf 18,036 sf 47,978 sf 23,343 sf storage 95 80’ 47’ 128’

BAY SHORE, NY · PENATAQUIT DRIVE existing breezeway barber 3,150 sf 21,335 sf 25,444 sf 17,000 sf 620sf 1,500 sf 16,708 sf 18,036 sf 47,978 sf 23,343 sf storage 95 80’ 47’ 128’

FOR SALE > RESTAURANT Redevelopment Opportunity...e01 sf 4,342 e02 sf 4,800 e06a sf 1,890 e07 sf 1,570 e10 sf 1,260 e11a 3,200 e13 sf 3,000 g01 sf 2,250 g02 sf 1,204

FOR SALE > RESTAURANT Redevelopment Opportunity...e01 sf 4,342 e02 sf 4,800 e06a sf 1,890 e07 sf 1,570 e10 sf 1,260 e11a 3,200 e13 sf 3,000 g01 sf 2,250 g02 sf 1,204

Wr-;;:::t VIRGINIA Procurement VU TECH · $2.04 /SF $1.84 /SF $2.06 /SF $1.93 /SF $2.16 /SF $0.98 /SF $1.64 /SF $2.32 /SF $2.51 /SF $2.22 /SF $4.44 /SF HOURLY RATE WORK 9 10 Drywall

Wr-;;:::t VIRGINIA Procurement VU TECH · $2.04 /SF $1.84 /SF $2.06 /SF $1.93 /SF $2.16 /SF $0.98 /SF $1.64 /SF $2.32 /SF $2.51 /SF $2.22 /SF $4.44 /SF HOURLY RATE WORK 9 10 Drywall

McMahon Hall Floor 2 - University of Washington164 SF 159 SF 181 SF 200 SF 173 SF 151 SF 155 SF 151 SF 154 SF 155 SF BATH BATH BATH BATH BATH BATH BATH BATH BATH BATH BATH BATH 151

McMahon Hall Floor 2 - University of Washington164 SF 159 SF 181 SF 200 SF 173 SF 151 SF 155 SF 151 SF 154 SF 155 SF BATH BATH BATH BATH BATH BATH BATH BATH BATH BATH BATH BATH 151

Austin Ridge Center · austin ridge center 19,000 sf 41,543 sf 1,839 sf 2,523 sf 7,830 sf 3,423 sf 4,498 sf 4,800 sf 2,000 sf. preliminary site plan -completed road network austin

Austin Ridge Center · austin ridge center 19,000 sf 41,543 sf 1,839 sf 2,523 sf 7,830 sf 3,423 sf 4,498 sf 4,800 sf 2,000 sf. preliminary site plan -completed road network austin

QUAIL RUN PLAT 1 QUAIL RUN PLAT 217,638 sf 3 10,270 sf 15 10,270 sf 16 10,071 sf 44 10,071 sf 47 10,071 sf 46 10,071 sf 45 10,326 sf 17 10,125 sf 19 10,500 sf 22 10,500 sf 21 10,383

QUAIL RUN PLAT 1 QUAIL RUN PLAT 217,638 sf 3 10,270 sf 15 10,270 sf 16 10,071 sf 44 10,071 sf 47 10,071 sf 46 10,071 sf 45 10,326 sf 17 10,125 sf 19 10,500 sf 22 10,500 sf 21 10,383

ROCKAWAY PLAZA - LoopNet · Retro Fitness AVAILABLE 11,438 SF 10,000 SF 7,892 SF 2,843 SF 850 SF 2,200 SF 900 SF 3,800 SF 250 SF 1,760 SF 1,300 SF 10,000 SF 4,826 SF 2,700 SF 20,995

ROCKAWAY PLAZA - LoopNet · Retro Fitness AVAILABLE 11,438 SF 10,000 SF 7,892 SF 2,843 SF 850 SF 2,200 SF 900 SF 3,800 SF 250 SF 1,760 SF 1,300 SF 10,000 SF 4,826 SF 2,700 SF 20,995

X HOUSE ELEVATIONS - Engineering Firm in Menasha, WI ... · 11,993 sf 153 11,993 sf 154 11,993 sf 155 11,993 sf 156 11,993 sf 157 11,992 sf 159 11,992 sf 129 14,852 sf 149 14,742

X HOUSE ELEVATIONS - Engineering Firm in Menasha, WI ... · 11,993 sf 153 11,993 sf 154 11,993 sf 155 11,993 sf 156 11,993 sf 157 11,992 sf 159 11,992 sf 129 14,852 sf 149 14,742

ATTRACTIVE 810 SF RETAIL/OFFICE SUITE FOR LEASE MARINA ... · XPRO NAILS SIZE 2,400 SF 1,000 SF 5,000 SF 980 SF 810 SF 1 SF 1 SF 3, 180 SF 1 ,520 SF 1 ,360 SF 11 11 11 11 G K L Hogback

ATTRACTIVE 810 SF RETAIL/OFFICE SUITE FOR LEASE MARINA ... · XPRO NAILS SIZE 2,400 SF 1,000 SF 5,000 SF 980 SF 810 SF 1 SF 1 SF 3, 180 SF 1 ,520 SF 1 ,360 SF 11 11 11 11 G K L Hogback