3601 - 3617 east coast highway...corona del mar, ca size of improvements 4,612 sf currently vacant...
TRANSCRIPT
3601 - 3617 EAST COAST H IGHWAYCORONA DEL MAR, CA
OFFERING MEMORANDUM CAPITAL MARKETS INVESTMENT PROPERT IES
AFFILIATED BUSINESS DISCLOSURECBRE, 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 arms’ 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.
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.
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.
© 2018 CBRE, Inc. All rights reserved.
1. INVESTMENT SUMMARY & PRICING OVERVIEW ............. 4
2. INVESTMENT OVERVIEW & HIGHLIGHTS ......................... 6
3. FINANCIAL OVERVIEW ....................................................... 7
4. PROPERTY DESCRIPTION ............................................... 17
5. AERIAL & PROPERTY PHOTOS ....................................... 19
6. LOCATION OVERVIEW ..................................................... 24
7. DEMOGRAPHICS ............................................................. 28
NATHAN HOLTHOUSERFirst Vice President Lic. 01838616 +1 949 229 2273 [email protected]
TRAM CHURCHSenior Associate Lic. 01478857 +1 949 809 3663 [email protected]
RYAN SHARPEAssociate Lic. 01940376 +1 949 809 3658 [email protected]
REBECCA CANALEZClient Services Team Lead Lic. 01384744 +1 949 809 3661 [email protected]
JAMES LEHIGHAssociate Lic. 01850077 +1 949 809 3662 [email protected]
SHAUN MOOTHARTDebt & Structured Finance Lic. 01773201 +1 949 509 2111 [email protected]
CBRE3501 Jamboree Road Suite 100 Newport Beach, CA 92660
FOR MORE INFORMAT ION, PLEASE CONTACT : TABLE OF CONTENTS
| 3 |
INVESTMENT SUMMARY & PRICING OVERVIEW
INVESTMENT SUMMARYPrice $7,600,000
Net Operating Income (Year 1) $338,141
Cap Rate (Year 1) 4.45%
Gross Leasable Area (SF) 4,612
Price/SF $1,648
Lot Size 10,651
Year Built 1962
Parking Spaces 16
PRIC ING VALUAT IONGLA SIZE4,612 SF
LOT SIZE10,651
ADDRESS3601 - 3617 E. Coast Hwy, Corona Del Mar, CA
PRICE$7,600,000
| 5 |
CBRE is pleased to offer for sale a trophy storefront
retail property in the heart of Corona del Mar.
The subject property sits on the hard corner of
Pacific Coast Highway and Orchid Avenue. The
property’s unique positioning provides excellent
frontage and visibility. There is ample parking
with 16 rare spaces on site. Driveways on both
Pacific Coast Highway and Orchid Avenue provide
convenient ingress and egress to the property.
The property utilizes every square inch of the lot
with a synergistic tenant mix. The tenants are
INVESTMENT OVERVIEW• Located in the Heart of Corona del Mar
• Situated on the Hard Corner of PCH & Orchid
Ave
• Predominantly Service & Food Tenants
• Seasoned Tenants
• All Modified Gross Leases
• Two Driveways for Convenient Ingress & Egress
• 16 Rare Parking Spaces
• Excellent Tenant Signage
predominantly service and food use with many of
them being at the property for more than 10 years.
The tenants consist of: Corona del Mar Jewelry &
Consignment, Tobacco, Thai Massage, Kud’Ci Hair
Salon, Damasq Café, Chronic Tacos, and Blooms
Flowers. All the tenants are currently on modified
gross leases, which is advantageous to the new
owner because none of the tenants will receive an
increased common area maintenance bill following
the close of escrow.
INVESTMENT H IGHL IGHTS
| 6 |
FINANCIAL OVERVIEW
PROPERTY DESCRIPTIONProperty Type Retail
Property Owner Private Investor
Property Address 3601-3617 East Coast HighwayCorona Del Mar, CA
Size of Improvements 4,612 SF
Currently Vacant as of 3/1/18 0 SF
Current Occupancy as of 3/1/18 100.00%
Projected Occupancy as of 7/1/18 100.00%
ACQUISITION AND RESIDUAL SUMMARYPURCHASE PRICE AS OF JULY 1, 2018 $1,648 PSF $7,600,000
YEAR 1 YEAR 2 YEAR 3Capitalization Rate 4.45% 4.62% 4.87%
Unleveraged Cash Return 4.44% 4.30% 4.86%
Return on Cost 4.45% 4.61% 4.85%
In-Place Capitalization Rate 4.51% 100.00% Occupancy
Mark-to-Market Cap Rate 4.47% 97.00% Occupancy
3-YEAR 5-YEARAverage Capitalization Rate 4.65% 4.85%
Average Cash Return 4.53% 4.75%
Net Residual Value as of June 30, 2023 $1,910 PSF $8,811,000
Residual Capitalization Rate 4.50%
Residual Cost of Sale 3.00%
ALL CASH IRR 7.47%
ALL CASH EQUITY MULTIPLE 1.40x
No leverage assumptions are modeled in this analysis.
EXECUT IVE SUMMARY
| 8 |
ASSUMPT IONS
GLOBALANALYSIS PERIODCommencement Date July 1, 2018
End Date June 30, 2023
Term 5 Years
AREA MEASURESBuilding Square Feet (NRSF) 4,612 SF
GROWTH RATESConsumer Price Index (CPI) 3.00%
Other Income Growth Rate 3.00%
Operating Expenses 3.00%
Real Estate Taxes 2.00%
Market Rent Growth
CY 2019 3.00%
CY 2020 3.00%
CY 2021 3.00%
CY 2022 3.00%
CY 2023 3.00%
CY 2024 3.00%
CY 2025 3.00%
CY 2026 3.00%
CY 2027 3.00%
CY 2028+ 3.00%
GENERAL VACANCY LOSS 3.00%
CAPITAL RESERVES (CY 2018 VALUE)
$0.15 PSF
VACANT SPACE LEASINGOCCUPANCY AND ABSORPTIONProjected Vacant at 7/1/18 0 SF
Currently Vacant as of 3/1/18 0 SF
Percentage Vacant at 3/1/18 0.00%
EXPENSESOperating Expense Source Estimates
Management Fee (% of EGR) 4.00%
Real Estate Taxes Reassessed Yes
Millage Rate 1.052830%
Special Assessments $3,605
VACANT SPACE LEASINGKIOSK RESTAURANTS SHOPS
RETENTION RATIO 90% 90% 90%
FINANCIAL TERMS2018 Monthly Market Rent See Rent Roll See Rent Roll See Rent Roll
Rent Adjustment 3.00% Annually 3.00% Annually 3.00% Annually
Lease Term 5 Years 5 Years 5 Years
Expense Reimbursement Type GROSS NNN NNN
TENANTING COSTSRent Abatements
New 0.0 Month(s) 1.0 Month(s) 1.0 Month(s)
Renewal 0.0 Month(s) 0.0 Month(s) 0.0 Month(s)
Weighted Average 0.00 Month(s) 0.10 Month(s) 0.10 Month(s)
Tenant Improvements ($/NRSF)
New $0.00 PSF $10.00 PSF $5.00 PSF
Renewal $0.00 PSF $5.00 PSF $0.00 PSF
Weighted Average $0.00 PSF $5.50 PSF $0.50 PSF
Leasing Commissions
New 6.00% 6.00% 6.00%
Renewal 3.00% 3.00% 3.00%
Weighted Average 3.30% 3.30% 3.30%
Downtime
New 6 Month(s) 6 Month(s) 6 Month(s)
Weighted Average 1 Month(s) 1 Month(s) 1 Month(s)
Note: All market rates are stated on calendar-year basis.
| 9 |
CASH FLOWFISCAL YEAR ENDING - JUNE 30 2019 2020 2021 2022 2023 2024Physical Occupancy 100.00% 97.29% 100.00% 100.00% 98.17% 98.55%
Overall Economic Occupancy [1] 97.00% 96.77% 97.00% 97.00% 96.92% 96.92%
Weighted Average Market Rent $6.49 $6.68 $6.88 $7.09 $7.30 $7.52
Weighted Average In Place Rent [2] $8.33 $8.25 $8.43 $8.77 $8.73 $8.67
Total Operating Expenses PSF Per Year $23.64 $24.17 $24.75 $25.32 $25.89 $27.86
[3]
FY 2019
REVENUES $/SF/YR
Scheduled Base Rent
Gross Potential Rent $99.95 $460,987 $456,709 $466,764 $485,122 $479,066 $477,756
Absorption & Turnover Vacancy 0.00 0 (11,143) 0 0 (4,556) (4,405)
Base Rent Abatements 0.00 0 (1,115) 0 0 (456) (441)
Total Scheduled Base Rent 99.95 460,987 444,451 466,764 485,122 474,054 472,910
Expense Reimbursements 0.00 0 21,572 32,186 32,892 56,211 76,560
TOTAL GROSS REVENUE 99.95 460,987 466,023 498,950 518,014 530,265 549,470
General Vacancy Loss (3.00) (13,830) (3,172) (14,969) (15,540) (11,489) (12,211)
EFFECTIVE GROSS REVENUE 96.96 447,157 462,851 483,981 502,474 518,776 537,259
OPERATING EXPENSES
Utilities (0.44) (2,030) (2,091) (2,154) (2,218) (2,285) (2,353)
Trash (0.18) (816) (841) (866) (892) (918) (946)
R&M (0.44) (2,030) (2,091) (2,154) (2,218) (2,285) (2,353)
Management Fee (3.88) (17,886) (18,514) (19,359) (20,099) (20,751) (21,490)
Insurance (0.40) (1,834) (1,889) (1,946) (2,004) (2,064) (2,126)
Real Estate Taxes (18.30) (84,420) (86,037) (87,685) (89,367) (91,082) (99,241)
TOTAL OPERATING EXPENSES (23.64) (109,016) (111,463) (114,164) (116,798) (119,385) (128,509)
NET OPERATING INCOME 73.32 338,141 351,388 369,817 385,676 399,391 408,750
CAPITAL COSTS
Tenant Improvements 0.00 0 (677) 0 0 (570) (464)
Leasing Commissions 0.00 0 (23,391) 0 0 (9,564) (9,247)
Capital Reserves (0.15) (692) (692) (692) (692) (692) (692)
TOTAL CAPITAL COSTS (0.15) (692) (24,760) (692) (692) (10,826) (10,403)
OPERATING CASH FLOW $73.17 $337,449 $326,628 $369,125 $384,984 $388,565 $398,347
ACQUISITION & RESIDUAL SALE
Acquisition Cost ($7,600,000) 0 0 0 0 0 All Cash
Net Residual Value [4] 0 0 0 0 0 8,810,833 IRR
CASH FLOW BEFORE DEBT ($7,600,000) $337,449 $326,628 $369,125 $384,984 $9,199,398 7.47%
NOI Return 4.45% 4.62% 4.87% 5.07% 5.26%
UNLEVERAGED Cash Return 4.44% 4.30% 4.86% 5.07% 5.11%
Return on Cost 4.45% 4.61% 4.85% 5.06% 5.23%
Cumulative Average Return on Cost - 4.53% 4.64% 4.74% 4.84%
Rolling - All Cash IRR 4.10% 6.74% 7.43% 7.61% 7.47%
[1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatements. [2] This figure does not include any amount related to expense reimbursements. Only Scheduled Base Rent and Fixed/CPI Increases are included in this calculation, which is based on the weighted-average physical occupancy during each fiscal year. [3] Based on 4,612 square feet. [4] Net Residual Value is calculated by dividing Year 6 NOI by the Residual Cap Rate of 4.50% and applying a 3.00% Cost of Sale. [5] No leverage assumptions are modeled in this analysis. | 10 |
IN-PLACE NOI PRO FORMA NOI
JUL-18, ANNUALIZED $ PSF JUL-18 TO JUN-19 $ PSF
SIZE OF IMPROVEMENTS 4,612 SF 4,612 SF
REVENUESScheduled Base Rent
Gross Potential Rent $450,468 $97.67 $460,987 $99.95
Absorption & Turnover Vacancy 0 0.00 0 0.00
Base Rent Abatements 0 0.00 0 0.00
Total Scheduled Base Rent 450,468 97.67 460,987 99.95
Expense Reimbursements 0 0.00 0 0.00
TOTAL GROSS REVENUE 450,468 [1] 97.67 460,987 99.95
General Vacancy Loss 0 0.00 (13,830) (3.00)
EFFECTIVE GROSS REVENUE 450,468 97.67 447,157 96.96
OPERATING EXPENSESUtilities (2,004) (0.43) (2,030) (0.44)
Trash (804) (0.17) (816) (0.18)
R&M (2,004) (0.43) (2,030) (0.44)
Management Fee (17,460) (3.79) (17,886) (3.88)
Insurance (1,812) (0.39) (1,834) (0.40)
Real Estate Taxes (83,616) (18.13) (84,420) (18.30)
TOTAL OPERATING EXPENSES (107,700) [2] (23.35) (109,016) (23.64)
NET OPERATING INCOME $342,768 $74.32 $338,141 $73.32 Capitalization Rate 4.51% 4.45%
PURCHASE PRICE AS OF JULY 1, 2018 $7,600,000 $1,647.88 $7,600,000 $1,647.88 In-Place Occupancy (At Start of Analysis With No Vacant Lease-Up) 100.00% 100.00%
Average Occupancy (Includes Vacant Lease-Up and Rollover) - 100.00%
IN-PLACE AND PROJECTED NOI SUMMARY
[1] In-Place Net Operating Income is calculated using contractual rents and expense reimbursements as of July 2018, Annualized (with no General Vacancy Loss). In-Place NOI does not include vacant lease-up revenue, downtime due to near-term expirations, or future rent increases for existing tenants. [2] Real Estate Taxes are reassessed based on the sales price.
| 11 |
EX IST ING VERSUS MARKET COMPARISONSUITE TENANT AT JULY 1, 2018 SF LEASE START LEASE END EXISTING RENT AS
OF JUL 1, 2018MARKET RENT AS
OF JUL 1, 2018PERCENTAGE ABOVE/(BELOW)
MARKET RENT [1]Existing Tenants
K Blooms 200 Sep-01 Jun-19 $21.00 PSF GROSS $21.00 PSF GROSS 0.00%
3617-C CDM Jewelry 800 Nov-13 Oct-23 $4.61 PSF NNN [2] $4.75 PSF NNN -3.39%
3617-B Mind Prossage Spa 1,012 Aug-12 Jul-22 $3.86 PSF NNN [2] $4.00 PSF NNN -3.39%
3617-A Tobacco 500 Feb-15 Jan-20 $6.13 PSF NNN [2] $6.25 PSF NNN -1.86%
3601-C Chronic Tacos 500 Sep-06 Aug-21 $14.17 PSF NNN [2] $14.20 PSF NNN -0.23%
3601-B Demasq Cafe 800 Dec-14 Nov-24 $4.59 PSF NNN [2] $4.75 PSF NNN -3.31%
3601-A Kud' C Hair Salon 800 Feb-05 Jun-19 $4.03 PSF NNN [2] $4.25 PSF NNN -5.17%
Total Existing Square Feet 4,612 $6.26 $6.39 -2.12%
[1] The calculation of total "Percentage Above/(Below) Market Rent" only includes existing tenants as noted in this schedule. [2] Tenant currently reimburses on a GROSS basis. Rent has been converted to a NNN equivalency for comparison purposes only.
DATE TENANT SUITES TOTAL SF ANNUAL (% OF SF) [1]
CUMULATIVE (% OF SF) [1]
CONTRACT RENT AT EXPIRATION
PRONJECTED MKT RENT AT EXPIRATION
$ VARIANCE % VARIANCE
Jun-19 Blooms K 200 4.34% $21.00 $21.63 ($0.63) -2.91%
Jun-19 Kud' C Hair Salon 3601-A 800 17.35% 4.03 4.38 (0.35) -7.92%
FYE 2019 Totals 1,000 21.68% 21.68% $7.42 $7.83 ($0.40) -5.15%
Jan-20 Tobacco 3617-A 500 10.84% $6.54 $6.63 ($0.09) -1.38%
FYE 2020 Totals 500 10.84% 32.52% $6.54 $6.63 ($0.09) -1.38%
Aug-21 Chronic Tacos 3601-C 500 10.84% $16.71 $15.52 $1.19 7.70%
FYE 2022 Totals 500 10.84% 43.37% $16.71 $15.52 $1.19 7.70%
Jul-22 Mind Prossage Spa 3617-B 1,012 21.94% $4.92 $4.64 $0.29 6.15%
FYE 2023 Totals 1,012 21.94% 65.31% $4.92 $4.64 $0.29 6.15%
Oct-23 CDM Jewelry 3617-C 800 17.35% $6.04 $5.51 $0.53 9.63%
FYE 2024 Totals 800 17.35% 82.65% $6.04 $5.51 $0.53 9.63%
Nov-24 Demasq Cafe 3601-B 800 17.35% $6.83 $5.67 $1.15 20.33%
FYE 2025 Totals 800 17.35% 100.00% $6.83 $5.67 $1.15 20.33%
SUBTOTAL 4,612 100.00%Vacant 0 0.00% 100.00%
TOTAL 4,612 100.00%
EX IST ING LEASE EXP IRAT IONS
[1] Based on 4,612 total building square feet.
| 13 |
FISCAL YEAR ENDING JUNE [1]
NUMBER OF SUITES
NET RENTABLE SF EXPIRING
PERCENTAGE SF EXPIRING
CUMULATIVE SF EXPIRING
WEIGHTED AVERAGE CONTRACT RENT AT EXPIRATION
PROJECTED MARKET RENT AT EXPIRATION
$ VARIANCE % VARIANCE
Currently Vacant 0 0 0.00%
2019 2 1,000 21.68% 21.68% $7.42 $7.83 ($0.40) -5.16%
2020 1 500 10.84% 32.52% $6.54 $6.63 ($0.09) -1.39%
2022 1 500 10.84% 43.37% $16.71 $15.52 $1.19 7.70%
2023 1 1,012 21.94% 65.31% $4.60 $4.50 $0.09 2.10%
2024 1 800 17.35% 82.65% $6.04 $5.51 $0.53 9.61%
2025 1 800 17.35% 100.00% $6.83 $5.67 $1.15 20.32%
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Currently Vacant 2019 2020 2022 2023 2024 2025
Min
imum
Ren
t Per
Squ
are
Foot
% of Building Expiring Proj. Market Rent at Expiration Wtd. Avg. Expiring Contract Rent
Perc
ent E
xpiri
ng
MARKET RENT AT EXPIRATION VS. WEIGHTED AVERAGE CONTRACT RENT AT EXPIRATION [1]
[1] The years in which no existing tenants expire are not reflected on this graph.
| 14 |
% OF LEASE TERM RENTAL RATES RECOVERY RENT ABATEMENT TENANT LEASING MARKET ASSUMPTION/
SUITE TENANT NAME SF PROPERTY BEGIN END BEGIN MONTHLY PSF ANNUALLY PSF TYPE MONTH # % ABATED IMPROVEMENTS COMMISSIONS MARKET RENTK Blooms 200 4.34% Sep-2001 Jun-2019 Current $4,200 $21.00 $50,400 $252.00 Gross Market
$21.00 GROSS (Kiosk)MTM
Notes: Tenant is currently MTM. Assumes tenant remains in-place throughout the first year of the analysis at same terms.
3617-C CDM Jewelry 800 17.35% Nov-2013 Oct-2023 Current $5,264 $6.58 $63,172 $78.97 MG+E Market $4.75 NNN (Shops)
Nov-2018 $5,475 $6.84 $65,696 $82.12
Nov-2019 $5,694 $7.12 $68,328 $85.41
Nov-2020 $5,922 $7.40 $71,064 $88.83
Nov-2021 $6,159 $7.70 $73,904 $92.38
Nov-2022 $6,405 $8.01 $76,856 $96.07
3617-B Mind Prossage Spa
1,012 21.94% Aug-2012 Jun-2023
Current $5,962 $5.89 $71,539 $70.69 MG+E Market $4.00 NNN (Shops)
PENDING Jul-2019 $6,200 $6.13 $74,402 $73.52
Jul-2020 $6,448 $6.37 $77,378 $76.46
Jul-2021 $6,706 $6.63 $80,474 $79.52
Jul-2022 $6,974 $6.89 $83,692 $82.70
3617-A Tobacco 500 10.84% Feb-2015 Jan-2020
Current $4,052 $8.10 $48,620 $97.24 MG+E Market $6.25 NNN (Shops)
Feb-2019 $4,254 $8.51 $51,050 $102.10
3601-C Chronic Tacos 500 10.84% Sep-2006 Aug-2021
Current $8,069 $16.14 $96,825 $193.65 MG+E Option $14.20 NNN (Restaurant)
Sep-2018 $8,472 $16.94 $101,665 $203.33
Sep-2019 $8,896 $17.79 $106,750 $213.50
Sep-2020 $9,340 $18.68 $112,085 $224.17
Notes: Tenant has one (1) - five (5) year option at continued 5% annual increases (modeled below).
3601-C Chronic Tacos 500 10.84% Sep-2021 Aug-2026
FUTURE $9,808 $19.62 $117,691 $235.38 MG+E Market $14.20 NNN (Restaurant)
OPTION Sep-2022 $10,298 $20.60 $123,575 $247.15
Sep-2023 $10,813 $21.63 $129,755 $259.51
Sep-2024 $11,353 $22.71 $136,240 $272.48
Sep-2025 $11,921 $23.84 $143,055 $286.11
Notes: Assumes tenant exercises one (1) - five (5) year option with no leasing costs.
RENT ROLL
| 15 |
CONTINUED % OF LEASE TERM RENTAL RATES RECOVERY RENT ABATEMENT TENANT LEASING MARKET ASSUMPTION/
SUITE TENANT NAME SF PROPERTY BEGIN END BEGIN MONTHLY PSF ANNUALLY PSF TYPE MONTH # % ABATED IMPROVEMENTS COMMISSIONS MARKET RENT3601-B Demasq Cafe 800 17.35% Dec-2014 Nov-
2024Current $5,250 $6.56 $63,000 $78.75 MG+E Market
$4.75 NNN (Restaurant)
Dec-2018 $5,513 $6.89 $66,152 $82.69
Dec-2019 $5,788 $7.24 $69,456 $86.82
Dec-2020 $6,077 $7.60 $72,928 $91.16
Dec-2021 $6,381 $7.98 $76,576 $95.72
Dec-2022 $6,701 $8.38 $80,408 $100.51
Dec-2023 $7,035 $8.79 $84,424 $105.53
3601-A Kud' C Hair Salon
800 17.35% Feb-2005 Jun-2019 Current $4,800 $6.00 $57,600 $72.00 MG+E Market $4.25 NNN (Shops)
MTM
Notes: Lease expired 9/16 and tenant is currently month-to-month. Assumes tenant remains in-place throughout the first year of the analysis at same terms.
TOTALS / AVERAGES 4,612 $37,539 $8.14 $450,469 $97.67
OCCUPIED SqFt 4,612 100.0%
VACANT SqFt 0 0.0%
TOTAL SqFt 4,612 100.0%
WEIGHTED-AVERAGE LEASE TERM REMAINING: 3.67 Years
WEIGHTED-AVERAGE LEASE TERM LAPSED: 7.44 Years
WEIGHTED-AVERAGE LEASE TERM FROM INCEPTION: 11.10 Years
RENT ROLL
| 16 |
PROPERT Y DESCRIPTION
PROPERTY DESCRIPT IONLOCATION3601 E. Coast Hwy
Corona Del Mar, CA 92625
SITE3601 E. Coast Hwy is located at the SEC corner of
Orchid Avenue and East Coast Highway.
LAND AREAThe property consists of one parcel (APN: 459-214-
01) totaling approximately 0.25 acres or 10,651 SF
of land area.
BUILDING AREAThe property consists of one (1) retail building with
one additional flower stand totaling approximately
4,612 SF of net rentable area.
FRONTAGE & ACCESSAccess points into the center include one (1)
entrance off Orchid Avenue and one (1) entrance off
East Coast Highway.
The site benefits from approximately 130 lineal feet
of frontage along East Coast Highway.
TRAFFIC COUNTSPacific Coast Hwy ±36,444
BUILTThe property was built in 1962.
ZONINGPer the city of Corona Del Mar, the subject site is
currently zoned as CC – Commercial Corridor.
| 18 |
AERIAL & PROPERT Y PHOTOS
| 20 |
| 21 |
Fashion Island
Costa Mesa
Irvine
Pacific Coast Hwy - 36,400 cars daily3601-3617 E. COAST HWY
| 22 |
Pacific Coast Hwy - 36,400 cars daily
3601-3617 E. COAST HWY
| 23 |
Balboa Island
Balboa Peninsula
Pacific C
oast Hw
y - 36,40
0 cars d
aily
Fashion Island
Costa Mesa
3601-3617 E. COAST HWY
| 24 |
Pacific Ocean
Balboa Peninsula
Corona del Mar State Beach
Pacific Coast Hwy - 3
6,400 cars daily
3601-3617 E. COAST HWY
| 25 |
LOCATION OVERVIEW
CORONA DEL MARCorona del Mar is an affluent neighborhood located in the city of Newport Beach, California. It generally consists of all land on the seaward face of the San Joaquin Hills south of Avocado Avenue to the city limits, as well as the development of Irvine Terrace, just north of Avocado. Corona del Mar is known for its fine beaches, tide pools, cliffside views and quaint village shops. Beaches in the area include Corona del Mar State Beach as well as Crystal Cove State Park south both of which attract thousands of visitors each year to their beautiful shores.
Settled early in the 20th century, Corona Del Mar has an aesthetic all its own, with vintage cottages and stunning ocean view houses side-by-side on flower-named residential streets. Spanish for “Crown of the Sea”, Corona Del Mar is home to a wealthy population. The average income for a household in the community is $203,802. Furthermore, Corona Del Mar includes some of Orange County's most prestigious residential areas. Offering a unique selection of shopping, restaurants, services and retail fashions, the seaside community is conveniently located just 50 miles south of Los Angeles International Airport, 4 miles west of John Wayne Airport and 70 miles north of San Diego. Residents and visitors enjoy Corona Del Mar’s exciting restaurants, quiet music spots, and boutique retail along the beautiful Orange County coast.
Corona Del Mar is a part of the greater Orange County region which is the third most populated county in the state of California and the six largest in the nation. Orange County is made up of 34 cities and features 42 miles of pristine coastline, two major
harbors, vast wilderness parks, top-rated attractions, world-class shopping, multiple professional sports teams and a wide range of other activities. Orange County is home to 3.2 million and draws more than 43 million visitors each year. Home to Disneyland, Knott’s Berry Farm, and the largest convention center in the west, Anaheim Convention Center, the region attracts tourists from all over the world. Ranked in Forbes magazine’s top 50 economically thriving metro areas, Orange County enjoys lower business costs, a highly qualified workforce, and one of the lowest unemployment rates in the state. Orange County’s is one of the most successful and highly compensated counties in California with an average household income above both the State of California and the nation at almost $113,600 annually. Attraction and retention are two of the key reasons for the County’s economic success. As home to some of the world’s leading companies and 17 colleges and universities, Orange County offers one of the best educated work forces in the world, and an independent attitude.
While Orange County’s business regions are impressive, tourism is one of its largest and most famed industries in the county accounting for 160,000 jobs. With Anaheim being the home of the county’s top employer, Disneyland, it also acts as the main tourist hub. Disneyland is the second most visited amusement park in the world just behind its sister park in Florida. Orange County is also home to California Adventure, Knotts Berry Farm, numerous beach resorts, professional sports teams, world renowned golf courses, and unique shopping and dining experiences. With an estimated 43 million
visitors per year utilizing hotels, restaurants, and other services, the area brings in over $8.7 billion dollars annually just in tourism.
| 27 |
REGIONAL MAPMT SAN
ANTONIO
ANGELESNATIONAL FOREST
PASADENA
POMONA
SAN BERNARDINO
REDLANDS
RIVERSIDE
PERRIS
MENIFEELAKE ELSINORE
MURRIETA
TEMECULADANA POINT
HUNTINGTONBEACH
IRVINE
SANTA ANA
ANAHEIM
LONG BEACH
SAN CLEMENTE
LOS ANGELES
241
73 79
74
60
60
138
1
15
15
210
210
605
5710110
405
405
15
215
215
10
10
NEWPORTBEACH
| 28 |
LOCAL MAP
| 29 |
DEMOGRAPHICS
POPULATION 1 MILE 3 MILES 5 MILES2017 Population - Current Year Estimate 11,060 54,359 169,258
2022 Population - Five Year Projection 11,597 56,947 176,526
2010 Population - Census 10,332 50,748 158,243
2000 Population - Census 10,625 45,331 143,736
2010-2017 Annual Population Growth Rate 0.94% 0.95% 0.93%
2017-2022 Annual Population Growth Rate 0.95% 0.93% 0.84%
HOUSEHOLDS2017 Households - Current Year Estimate 5,375 24,188 68,197
2022 Households - Five Year Projection 5,593 25,133 70,689
2010 Households - Census 5,100 22,978 65,016
2000 Households - Census 5,235 21,069 59,542
2010-2017 Annual Household Growth Rate 0.73% 0.71% 0.66%
2017-2022 Annual Household Growth Rate 0.80% 0.77% 0.72%
2017 Average Household Size 2.06 2.25 2.37
HOUSEHOLD INCOME2017 Average Household Income $203,802 $203,753 $148,451
2022 Average Household Income $222,202 $222,647 $165,634
2017 Median Household Income $140,004 $139,238 $92,846
2022 Median Household Income $149,830 $150,210 $105,053
2017 Per Capita Income $97,573 $91,187 $60,770
2022 Per Capita Income $105,594 $98,826 $67,219
HOUSING UNITS 1 MILE 3 MILES 5 MILES2017 Housing Units 4,339 16,773 50,531
2017 Vacant Housing Units 732 16.9% 1,781 10.6% 3,536 7.0%
2017 Occupied Housing Units 3,608 83.2% 14,993 89.4% 46,996 93.0%
2017 Owner Occupied Housing Units 1,771 40.8% 9,064 54.0% 30,304 60.0%
2017 Renter Occupied Housing Units 1,837 42.3% 5,929 35.3% 16,692 33.0%
EDUCATION2017 Population 25 and Over 8,812 41,626 116,270
HS and Associates Degrees 2,576 31.5% 12,250 31.1% 39,322 39.5%
Bachelor's Degree or Higher 6,050 68.7% 28,666 68.8% 70,425 60.6%
PLACE OF WORK2017 Businesses 686 3,472 11,059
2017 Employees 4,980 34,713 129,488
| 31 |
FOR MORE INFORMAT ION, PLEASE CONTACT :
© 2018 CBRE, Inc. The information containing in this document has been obtained for sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, 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. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. 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.
3501 Jamboree Road, Suite 100 Newport Beach, CA 92660 CBRE, INC Broker Lic. 00409987
NATHAN HOLTHOUSERFirst Vice President Lic. 01838616 +1 949 229 2273 [email protected]
TRAM CHURCHSenior Associate Lic. 01478857 +1 949 809 3663 [email protected]
RYAN SHARPEAssociate Lic. 01940376 +1 949 809 3658 [email protected]
REBECCA CANALEZClient Services Team Lead Lic. 01384744 +1 949 809 3661 [email protected]
JAMES LEHIGHAssociate Lic. 01850077 +1 949 809 3662 [email protected]
SHAUN MOOTHARTDebt & Structured Finance Lic. 01773201 +1 949 509 2111 [email protected]