federal opportunity zone - loopnet · address: 1155-1171 e ash avenue fullerton, ca 92831...

FULLERTON MULTI-TENANT INDUSTRIAL FOR SALE1155-1171 EAST ASH AVENUE, FULLERTON, CA 92831

FEDERAL OPPOR TUNIT Y ZONE

Garrett SholerPrincipal / Senior Vice President

Opportunity Zone [email protected]

D 949.722.7227 www.OZRecon.com

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale, lease and availability are subject to change or withdrawal without notice.

Lee & Associates - 1900 Wright Place, Suite 200 | Carlsbad, CA 92008 | P: 760.929.9700 F: 760.929.9977

Just Reduced $410K / 6% Cap @ Market Rents


FEDERAL OPPORTUNIT Y ZONE

TABLE OF CONTENTS

1. PROPERTY HIGHLIGHTSProperty Information...........................3

2. OPPORTUNITY ZONESWhat You Need to Know & Links to Additional Resources.........................4

3. PRICING & FINANCIAL INFORMATION

Proforma Investment Analysis...........5Actual Income.......................................6Rent Roll................................................7Floor Plan...............................................8Site Plan.................................................9Small Lease Comparables...............10

4. AREA INFORMATIONLocation Maps...................................11Demographics....................................13Area Highlights..................................14

ADDRESS: 1155-1171 E Ash AvenueFullerton, CA 92831

INTERSECTION: E Ash Ave & S Raymond Ave

SUBMARKET: Central Orange County

RENTABLE SQUARE FEET: 14,484 SF (estimated)

LOT SIZE (Approx.): 23,392 SF (0.54 acres)

# OF UNITS: 6 suites

# OF FLOORS: 1 Floor

HEIGHT CLEARANCE Approx. 14’

APN: 269-121-02

YEAR BUILT: 1961

RENOVATED: 1970

CONSTRUCTION: Tilt-Up

DRIVEWAYS & PARKING: Asphalt

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

Garrett SholerPrincipal/Senior Vice PresidentOpportunity Zone [email protected] 949.722.7227www.OZRecon.com

1155-1171 East Ash Avenue, Fullerton, CA

PROPERTY HIGHLIGHTS | Information

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• Multi-Tenant Industrial Investment in the heart of Orange County.• Ideal for an Owner-User also; 4004 Sq. Ft. available & ALL tenants on

Month to Month Leases.• Area likely to improve more rapidly than surrounding markets due to

Opportunity Zone incentives.• Access on 3 sides (from the street in the front, alley in the rear and

Easement on the side)


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OPPORTUNITY ZONES | What You Need To Know...

WHAT IS AN OPPORTUNITY ZONE AND WHY SHOULD I PAY ATTENTION NOW?

Opportunity Zones offer a major tax incentive to invest capital gains from non-real estate activities into real estate, Including potentially avoiding ALL Federal Capital Gains taxes on the gains resulting from the new Opportunity Zone (“OZ”) investment. By investing in Opportunity Zone Property, the OZ investor can potentially delay and reduce the Capital Gains taxes which would otherwise be due in the current tax period. Below is a synopsis of the discount applied to current Capital Gains and Exclusion of future Capital Gains Taxes:

• A 15% discount on capital gains invested in the OZ property expires 12/31/19*.

• A 10% discount on capital gains invested in the OZ property expires 12/31/2021*.

• A deferral of Capital Gains taxes due on Capital Gains reinvested in OZ property Expires 12/31/2026*.

• Permanent exemption from Federal Capital Gains Taxes** on the New OZ Investment, if the guidelines are followed over the required 10 year holding period.

The Federal Opportunity Zone Program, was created to strongly encourage the immediate improvement of designated lower-income regions. This program is the first in generations allowing Investors to move Capital Gains out of non-real estate activities into real estate investments while potentially receiving a PERMANENT EXCLUSION from FEDERAL CAPITAL GAINS TAXES on the future sale of Opportunity Zone assets**.

*The above discounts are conditioned on the length of time that the OZ Investor owns the OZ Property. Since the Opportunity Zone program ends on 12-31-2026 it will not be possible for the OZ Investor to Own the OZ property for more than seven years after the end of 2019, nor will it be possible for the investor to own a OZ property for more than 5 years after the end of 2021. The 10% & 15% discounts on capital gains just simply “time out” by definition on the above dates. The value of the deferral goes down as time passes in accordance with “time value of money” and “opportunity cost of capital” principles, as the date on which the Capital Gains Tax become due approaches. The Capitals Gains tax due date and the official end of the Opportunity Zone program is 12-31-2026.

**A Qualified Opportunity Zone Fund (QOF) is the self certified investment vehicle, set up by the investor as a corporation or a partnership. The QOF deploys private investment capital by starting a business or purchasing and substantially improving a property in a Federally designated Opportunity Zone. To qualify for tax benefits, many significant standards must be met including but not limited to: The QOF must “substantially improve” the purchased property by further developing or making very significant new improvements to the property in compliance with the Opportunity Zone Program guidelines. The property must also be purchased before 12-31-2026 and be owned by the QOF for a minimum of ten years to qualify. For information regarding the actual rules, the below links lead directly to the Federal Guidelines released as of May 2019:

https://www.federalregister.gov/documents/2018/10/29/2018-23382/investing-in-qualified-opportunity-fundshttps://www.irs.gov/pub/irs-drop/rr-18-29.pdf

https://www.federalregister.gov/documents/2018/10/29/2018-23382/investing-in-qualified-opportunity-f

https://www.irs.gov/pub/irs-drop/rr-18-29.pdf

Garrett SholerPrincipal/Senior Vice President


D 949.722.7227www.OZRecon.com


PRICING & FINANCIAL INFORMATION | Proforma Investment


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Estimated Rents (mo.) *CAM Charges Est @ $.17 PSF & $.20 for Ste.'s's w/yard space Annual Expenses (estimated)Ste TENANT NAME Sq. Ft. Est. Rent Mo.Rt. PSF CAM Charge (Annual) PSF. (Ann.) %*1155 New Tenant (750 SF **Yard) 1,470 1,916$ 1.30$ 294$ NEW PROP TAXES 1.0851% 32,500$ 2.24$ 14.40%

1159 New Tenant (750 SF **Yard) 1,470 1,916$ 1.30$ 294$ Management 3.00% 5,850$ 0.40$ 2.59%

1161 New Tenant 1,800 2,070$ 1.15$ 306$ Capital Reserve 1,950$ 0.13$ 1.00%

1165 New Tenant 3,900 4,485$ 1.15$ 663$ Insurance 3,500$ 0.24$ 1.55%

1169 New Tenant 4,004 4,605$ 1.15$ 681$ Water & Basic Maintenance 2,500$ 0.17$ 1.28%

1171 New Tenant 1,840 2,116$ 1.15$ 313$ Total Sq. Ft. 14,484 17,107$ GOI/CAM (mo.)2,550$ Total EXPENSES 46,301$ 3.20$ 20.83%

Total Vacant Sq. Ft. - **Yard space is estimated to Exp. Per Ft. % of GOI

Total Occupied Sq. Ft. 14,484 be worth $.30 PFS monthly * Percentage of Gross Operating Income

Annual Income Sales AnalysisScheduled Op. Inc.(SGI) 205,279$ Proforma Income @ 95% OccupancyVacancy Reserve (10,264)$ 5.00% Price 2,995,000$ Loan Est. Annual Debt Service: (111,528.99)

Loan Balance 1,946,750 65.0%

Gross Operating Income(GOI) 195,015$ Cap Rate 6.0% Down Payment 1,048,250 35.0%

CAM Reimbursements 30,606$ Amortized (yrs) 30 Yrs.

Gross Annual Revenue 225,621$ Price Per Sq. Ft. 206.78$ Interest Rate 4.00% APR

Annual Expenses (46,301)$ Payment (9,294.08)$ Mo.

Net Operating Income (NOI) 179,320$ Cash Flow After Pmt. 6.47% Debt Cover Ratio 1.608

PROFORMA Investment Analysis - Estimated Rents After Re-Model / 1155-71 E Ash Ave., Fullerton CA

This document is strictly a working document not to be construed or relied upon as factual or achievable; it is designed to illustrate a future investment scenario and potential residual value associated with that. Cost for necessary improvements to get in creased rents has NOT been factored into this analysis. It is recommended that your Financial Analyst, Entitlement Consultant, Architect, Attorney & General Contractor advise you on your own assumptions, calculations and potential outcomes.

Lee & Associates is not liable for incorrect calculations, assumptions or conclusions. This document is hypothetical and designed to be used for a basic preliminary analysis for one of many outcomes. Assumptions are based on market conditions in May 2019.

Contact Garrett Sholer of Lee & Associates Opportunity Zone Group for details: [email protected]/Cell (949) 722-7227

PROFORMA Investment Analysis - Estimated Rents After Re-Model / 1155-71 Ash Ave., Fullerton, CA




Rent Roll (monthly) Annual ExpensesSte TENANT NAME Sq. Ft. Rent Mo.Rt. PSF CAM Charge (Annual) PSF (Ann.) %*

1155 Seth Sundquist 1,470 1,100$ $0.75 -$ NEW PROP TAXES 1.0851% 32,500$ 2.24$ 30.43%

1159 Alex Salazar 1,470 1,100$ $0.75 -$ Management 3.00% 3,204$ 0.22$ 3.00%

1161 - VACANT - 1,800 -$ $0.00 -$ Capital Reserve 1,068$ 0.07$ 1.00%

1165 Harold Katinszky 3,900 2,100$ $0.54 -$ Insurance 3,500$ 0.24$ 3.28%

1169 Mohamed Mahmoud Sharafeldegn 4,004 3,100$ $0.77 -$ Water & Basic Maintenance 1,500$ 0.10 1.40%

1171 Ron Smith 1,840 1,500$ $0.82 -$ Total Sq. Ft. 14,484 8,900$ GOI/CAM(Mo) -$ Total EXPENSES 40,272$ 2.88$ 39.11%

Total Vacant Sq. Ft. 1,800 Exp. Per Ft. % of GOI

Total Occupied Sq. Ft. 12,684 * Percentage of Gross Operating Income

Annual Income Sales AnalysisScheduled Op. Inc.(SGI) 131,640$ Vacancy (economic) (24,840)$ -18.87% Price 2,995,000$ Loan Est. Annual Debt Service: (85,791.53)

Vacancy Res. Loan Balance 1,497,500 50.0%

Gross Operating Income(GOI) 106,800$ Cap Rate 2.22% Down Payment 1,497,500 50.0%

CAM Reimbursement -$ Amortized (yrs) 30 Yrs.

Gross Annual Revenue 106,800$ Price Per Sq. Ft. 206.78$ Interest Rate 4.00% APR

Annual Expenses (40,272)$ Payment (7,149.29)$ Mo.

Net Operating Income (NOI) 66,528$ Cash Flow After Pmt. -1.29% Debt Cover Ratio 0.775

ACTUAL INCOME / Multi-Building Industrial / 1155-71 E Ash Ave., Fullerton CA

This document is strictly a working document not to be construed or relied upon as factual or achievable; it is designed to illustrate a future investment scenario and potential residual value associated with that. . It is recommended that your Financial Analyst, Entitlement Consultant, Architect, Attorney & General Contractor advise you on your own assumptions, calculations and potential outcomes. Lee & Associates is not liable for incorrect calculations, assumptions or

conclusions. This document is hypothetical and designed to be used for a basic preliminary analysis for one of many outcomes. Assumptions are based on market conditions in May 2019.

Contact Garrett Sholer, Lee & Associates Opportunity Zone Group for details: [email protected]/Cell (949) 722-7227

ACTUAL INCOME / Multi-Building Industrial 1155-71 Ash Ave., Fullerton, CA1155-1171 East Ash Avenue, Fullerton, CA

PRICING & FINANCIAL INFORMATION | Actual Income


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PRICING & FINANCIAL INFORMATION | Rent Roll


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-- RENT ROLL ---- RENT ROLL --1159-1171 Ash Ave., Fullerton CA 92831

Unit Sq.Ft. Rent Term Per Sq.Ft. Rented on Last Rent Raise

1155 1,470 $1,100 month-to-month $0.75 1/1/2018

1159 1,470 $1,100 Expires September 2020 $0.75 3/1/2003 9/1/2006

1161 1,800 Vacant

1165 3,900 $2,100 month-to-month $0.54 5/1/2010 10/1/2015

1169 4,004 $3,100 Expires March 2020 $0.77 10/1/2019

1171 1,840 $1,500 month-to-month $0.81 2/1/2016

TOTAL 14,484 $8,900





PRICING & FINANCIAL INFORMATION | Floor Plan


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PRICING & FINANCIAL INFORMATION | Site Plan


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AddressProperty Type

Property Size (SF)

Parking Ratio /1,000

SFBuilt/Renov

On the Market

Lease Start Date Lease Rate Notes

418 E Commonwealth Ave Class B 984 1.50 1989 2 Mos Apr 2019 $1.15/MG

1945 W Commonwealth Ave Class B 2,470 2.00 1981 7 Mos Feb 2019 $1.20/MG 1 Dock/Drive In

1945 W Commonwealth Ave Class B 1,280 2.00 1981 4 Mos Nov 2018 $1.20/MG 150 SF Office

418 E Commonwealth Ave Class B 984 1.50 1989 2 Mos Oct 2018 $1.15/IG 1 Dock/Drive In

1945 W Commonwealth Ave Class B 1,251 2.00 1981 5 Mos Sep 2018 $1.20/MG

1945 W Commonwealth Ave Class B 1,280 2.00 1981 7 Mos Jul 2018 $1.15/IG

1945 W Commonwealth Ave Class B 1,536 2.00 1981 5 Mos May 2018 $1.15/MG

1945 W Commonwealth Ave Class B 1,280 2.00 1981 4 Mos Apr 2018 $1.15/MG

1300-1312 E Orangethorpe Ave Class C 1,200 2.00 1963 1 Mo Jan 2018 $1.15/MG 200 SF Office1 Dock/Drive In

1300-1312 E Orangethorpe Ave Class C 1,200 2.00 1963 1 Mo Jan 2018 $1.15/MG 200 SF Office


PRICING & FINANCIAL INFORMATION | Small Lease Comparables

*All of the above small lease comparable information was obtained from Costar and has not been confirmed by Lee & Associates.





AREA INFORMATION | Location Map


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1155-1171E Ash Avenue

Tourism continues to have a significant influence on the Orange County economy with the Disneyland resort being the second most visited theme park in the world. The county also annually plays host to the U.S. Open of Surfing and Vans World Championship of Skateboarding. Additionally, it is home to numerous professional sports teams including the MLB’s Los Angeles Angels and the NHL’s Anaheim Ducks.

The City of Fullerton is an Orange County transportation hub as it hosts a variety of rail transporters such as Amtrak and Metrolink. The Fullerton Station also serves as a major bus depot for the Orange County Transportation Authority (OCTA). In addition to being a vital component to Orange County transportation, Fullerton features museums, libraries, golf courses, sports complexes, tennis centers, regional parks, equestrian centers, 29 miles of recreational trails and nearly 200 acres of recreational land in the Brea Dam Recreational Area.

LA PALMA PARK

PEARSON PARK

Looking South-East12

AREA INFORMATION | Location Map


AREA INFORMATION | Demographics

567,019Population

177,536Households

31,884Businesses

$81,376Median HH Income

$

432,992Employees

35.9Median Age

1 mi radius 3 mi radius 5 mi radius

Population (2019) 18,601 240,138 567,019

Projected Population (2024) 18,938 244,215 576,190

Estimated Households (2019) 6,145 73,400 177,536

Median Household Income (2019) $69,950 $75,277 $81,376

Projected Median Household Income (2024) $ $ $

Median Age 35.0 34.5 35.9

Total Businesses 2,044 12,045 31,884

Total Employees 18,469 106,875 432,992

The City of Fullerton is located in Orange County which is defined by world-class beaches, famous amusement parks, nationally-ranked schools, award-winning homes, and diverse culture. Orange County is the third most populated county in California and the sixth most populated in the United States. Orange County is home to a substantial number of corporations that

span a variety of industries. It is the headquarters of numerous Fortune 500 companies, including Ingram Micro, First American Corporation, Broadcom, and Western Digital. Other companies include computer manufacturer Gateway, router manufacturer Linksys, video/computer game creator Blizzard Entertainment, and in-flight product manufacturer Panasonic Avionics Corporation. International businesses that call Orange County home to their regional headquarters include Mazda, Toshiba, Toyota, Samsung, Kia Motors, Mitsubishi, Hyundai, Oakley, Del Taco, and many more.

5-Mile Demographics

COMMUTER RAIL DRIVE DISTANCE DRIVE DISTANCE

San Juan Capistrano Commuter Rail (Orange County, Inland.)

7 min. 2.7 mi

San Clemente Commuter Rail (Orange County Line)

7 min. 4.1 mi

AIRPORT DRIVE DISTANCE DRIVE DISTANCE

John Wayne Airport 23 min 23.2 mi.


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278 SUNNY DAYS PER YEAR

76 AVERAGE TEMPERATURE

14” AVERAGE YEARLY RAINFALL


AREA INFORMATION | Area Highlights

White Lights Adorn the Trees on Harbor Boulevard

Chapman Building

Earth Day Celebration

Landmark Plaza Building

Annual Car Show

Railroad Days - Diesel Train

Floss Silk Trees in Bloom

Heroes Bar and Grill

Winter Festival Snow


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1900 Wright Place, Suite 200 Carlsbad, CA 92008 | 760-929.9700

lee-associates.com



D 949.722.7227 www.OZRecon.com

federal opportunity zone - loopnet · address: 1155-1171 e ash avenue fullerton, ca 92831...

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