An 11,556 square foot value-add mixed-use retail and office property ideally located on the SE signalized corner of North Lake Avenue and Union ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Pas ad en a, C A 91101
An 11,556 square foot value-add mixed-use retail and office property
ideally located on the SE signalized corner of North Lake Avenue and
Union Street, one block north of Colorado Boulevard in the heart of the
high-end, affluent San Gabriel Valley sub-market of Pasadena, CA.
Pa s a d e na , CA 9 1 1 0 1 04
Executive
Exclusively Listed By:
Summary
Brandon Michaels
Senior Managing Director of Investments
12
Senior Director, National Retail Group
Tel: 818.212.2794
brandon.michaels@marcusmillichap.com
CA License: 01434685
www. BrandonMichaelsGroup .com
Matthew Luchs
Property
First Vice President Investments
COO of The Brandon Michaels Group
Overview
Tel: 818.212.2727
matthew.luchs@marcusmillichap.com
16
CA License: 01948233
www. BrandonMichaelsGroup .com
Steven Schechter
First Vice President Investments
Director, National Retail Group
Tel: 818.212.2793 Area
steven.schechter@marcusmillichap.com Overview
CA License: 01089464
www. BrandonMichaelsGroup .com
24
Dana Liu
Investments Associate
National Retail Group
Tel: 213.943.1821
dana.liu@marcusmillichap.com
CA License: 02004766 Financial
Analysis
2 3
OLD PASADENA
635 E Union St
4-Story 40-unit
Apartment; 2,500 SF
Retail
PLAYHOUSE
DISTRICT
913 Boston Ct
12-unit Luxury
Apartment Pasadena, CA 91101
N Lak
e Ave
23,000
VPD
NM n St
en nio
tor EU
Av
e
4 5
Pa s a de n a , CA 9 1 1 0 1
the offering
An 11,556 square foot value-add mixed-use retail and office
property ideally located on the SE signalized corner of North Lake
Avenue and Union Street, one block north of Colorado Boulevard
in the heart of the high-end, affluent San Gabriel Valley sub-
market of Pasadena, CA
The Brandon Michaels Group of Marcus & Millichap has been selected
to exclusively represent for sale 80 – 100 North Lake Avenue, an 11,556
square foot mixed-use retail and office property situated on 21,325
square feet of land ideally located on the Southeast signalized corner
of North Lake Avenue and Union Street, one block north of Colorado
Boulevard and two blocks off the Interstate 210 Foothill Freeway, in
Pasadena, CA. Daily traffic counts exceed 23,000 vehicles per day.
There are a total of twenty parking spaces.
80 – 100 North Lake Avenue currently office portion is 60% vacant. As a result
consists of two adjacent buildings with of the short term nature of the leases
parking. Current occupancy is 88%. and existing vacancy, an owner-user
The building located at 80 North Lake can occupy a portion of the building
consists of 3,600 square feet of ground immediately or all of the building by
floor retail space. 100 North Lake 2024.
consists of 3,253 square feet of ground
floor office and 2,303 square feet of The subject property consists of 21,325
second story office space. In total, square feet of land zoned CD-5 and
there is 11,556 square feet consisting of AD-2, and is located within the Central
6,253 square feet of ground floor retail District Specific Plan, sub-area CD-5
and 5,303 square feet of second story – Lake Avenue. There is a “by-right”
office space. All existing leases are height limit of 75 feet and a “by-right”
short term in nature, creating a unique FAR of 3.00, allowing for the potential
executive summary
value-add or owner-user opportunity. to build up to 63,878 square feet at this
Current retail rents average $2.11 per location.
square foot modified gross. Current
office rents average $1.96 per square
foot, full-service gross. Currently, the
6 7
P a s a d ena , CA 9 1 1 0 1
INVESTMENT HIGHLIGHTS POTENTIAL COVERED LAND OPPORTUNITY
VALUE-ADD MIXED-USE RETAIL AND OFFICE
BUILDING WITH PARKING • 21,315 square feet of land zoned CD-5 and AD-2
• 88% occupied mixed-use retail and office building • Located within the Central District Specific Plan, sub-
area CD-5 – Lake Avenue
• Retail rents average $2.11 per square foot, modified gross
• Office rents average $1.96 per square foot, full service AFFLUENT SUB-MARKET WITH SIGNIFICANT
gross DEVELOPMENT AND STRONG UNDERLYING
• Ideal unit sizes which are easily leasable and require DEMOGRAPHICS
minimal tenant improvement costs • Average household income within one mile of the
property is $103,312
• Potential Owner-User Opportunity
• There are 14,762 people located within one mile of the
property, 59,028 within three miles, and 118,579 within
five miles
DOWNTOWN PASADENA
• “By-right” height limit of 75 feet and a “by-right”
FAR of 3.00, allowing for the potential to build up to
63,878 square feet at this location
IMMEDIATE SUB-MARKET IS EXPERIENCING
EXCELLENT PASADENA, CA SIGNALIZED TREMENDOUS GROWTH
CORNER LOCATION
• 2,440 multi-family units set for completion by 2022
• SE signalized corner of North Lake Avenue and Colorado
Boulevard, one block north of Colorado Bolevard • Over 41,000 people located within one mile of the
subject property and over 493,000 people within five
• Two blocks south of the Interstate 210 Foothill Freeway miles
• 0.6 of a mile from California Institute of Technology • Average household income within one mile is $99,960,
and that climbs to $125,662 within three miles
• 1.1 miles from Old Town Pasadena
• The median home value in the immediate area is
$772,7003
PASADENA CITY HALL NORTON SIMON MUSEUM
8 9
Pa s a de n a , CA 9 1 1 0 1
property summary
80-100 N Lake Avenue
l Fwy MID CENTRAL Address
Pasadena, CA 91101
Fo othil
EC
ol
or Price $7,500,000
ad
o
Bl
vd
Building Size 11,556 SF
St St
ln ut n Price/SF (Building) $649
Wa io
n
U
E Lot Size 21,325 SF
913 Boston Ct
12-unit Luxury
Apartment
Price/SF (Land) $352
Current CAP Rate 1.86%
Pasadena, CA 91101
Pro Forma CAP Rate 4.89%
Current Occupancy 88%
20 spaces are available;
Parking
a ratio of 1.73/1,000 SF
23,000 VPD N Lake Ave
3 mins by car to
CALIFORNIA INSTITUTE OF TECHNOLOGY
Year Built 1946
6 mins by car to
OLD TOWN PASADENA
Walk Score
Zoning
Walker’s Paradise (96)
PSC
9 mins by car to
NASA’S JET PROPULSION LABORATORY APN Numbers 5738-008-033, -034
10 11
Pa s a de n a , CA 9 1 1 0 1
property description LOCATION
80-100 N Lake Ave
Pasadena, CA 91101
SITE
The property is located on the SE corner
of N Lake Avenue and Union Street.
BUILDING SIZE
11,556 SF
LOT SIZE
21,325 SF
PARKING
20 Parking Spaces; A Parking Ratio of
1.73 Parking Spaces per 1,000 SF
KAISER ZONING
PERMANENTE
PSC
PASADENA CITY
OLD TOWN PASADENA COLLEGE
APN NUMBERS
CALTECH 5738-008-033, -034
PROPERTY OVERVIEW
THE HUNTINGTON LIBRARY, TRAFFIC COUNT
ART MUSEUM, AND
BOTANICAL GARDENS Intersection of N Lake Avenue and
Union Street: 23,000 Vehicles Per Day
12 13
P as ade n a, C A 9 1 1 0 1
Pasadena City Hall
parcel map
MW Lofts
OLD PASADENA
635 E Union St 6-Story 115-unit Apt;
14,000 SF Retail
4-Story 40-unit Apt;
2,500 SF Retail
Pasadena, CA 91101
N Lake Ave
913 Boston Ct
E
U
n
io
n
St
12-unit Luxury
Apartment
14 15
Pa s a de n a , CA 9 1 1 0 1
PASADENA, CA LOCATION
Pasadena, CA is one of the most sought after locations in Southern California, known for its eclectic mix of high-street retail,
world-renowned dining options, access to unparalleled amenities, shopping, and world class entertainment and conveniences
that is experiencing explosive growth, with over 2,400 multi-family units currently under construction.
80 – 100 North Lake is ideally located just two blocks south of the Pasadena is attractive to many Fortune 500 companies and small firms
Interstate 210 Foothill Freeway on the SE signalized corner of North Lake for its ability to create a pro-business environment with a high-quality
Avenue and Union Street. The subject property is located just 1.1 miles labor base. The city’s depth of technology related institutions and world-
from Old Town Pasadena, One of Southern California’s premier shopping class universities create an atmosphere where extraordinary minds unite
and dining destinations with over 200 specialty boutiques, restaurants, to build successful companies large and small. Pasadena also has a
and exclusive national retailers including Apple Store, Athleta, Banana growing biotech community, which made it an attractive choice for several
Republic, Blue Bottle, Burke Williams, Crate & Barrel, Eileen Fisher, Pottery organizations looking to move their headquarters, such as the Doheny
Barn, Intelligentsia, J.Crew, Lululemon, Mi Piace, Nike Store, Patagonia, Eye Institute and the Kaiser Permanente School of Medicine. The city’s
Tiffany & Co., Tesla, True Food Kitchen, Urban Outfitters, Zara, and more. top employers are NASA Jet Propulsion Laboratory, with over 6,500
employees; Caltech, with over 3,900 employees; and Huntington Hospital,
The subject property is located 0.6 miles from the California Institute with over 3,740 employees.
of Technology, a private research university known for its strength in
area OVERVIEW
science and engineering, and is one among a small group of institutes The immediate submarket is experiencing tremendous growth, with 2,440
of technology in the United States which is primarily devoted to the multi-family units currently under construction and set for completion
instruction of pure and applied sciences. Pasadena is quickly becoming by 2020. This densely populated sub-market benefits from over 41,000
an epicenter of innovation, drawing from the California Institute of people located within one mile of the subject property and over 493,000
Technology (CalTech) and NASA’s Jet Propulsion Laboratory (JPL), creating people within five miles. Average household income within one mile is
more sustainable rents compared to Downtown Los Angeles, Hollywood, $99,960, and that climbs to $125,662 within three miles. The median home
and Silicon Beach which will continue to fuel growth. value in the immediate area is $772,7003.
16 17
OLD TOWN PASADENA
1.1 Miles from the Subject Property
SHOPPING
Colorado Boulevard
CLOSE PROXIMITY
and Green Street are
lined with a large mix
of national chains and
to Popular Destinations independent retailers
as diverse as Design
80 – 100 North Lake is ideally located just two blocks south of the Interstate Within Reach and
210 Foothill Freeway on the SE signalized corner of North Lake Avenue Warby Parker, to name
just a few. Meander
and Union Street. The subject property is located just 1.1 miles from Old
through the upscale
Town Pasadena, One of Southern California’s premier shopping and dining One Colorado outdoor
destinations with over 200 specialty boutiques, restaurants, and exclusive shopping center to find
national retailers including Apple Store, Athleta, Banana Republic, Blue Bottle, elegant clothing stores
Burke Williams, Crate & Barrel, Eileen Fisher, Pottery Barn, Intelligentsia, like Finn + Willow.
J.Crew, Lululemon, Mi Piace, Nike Store, Patagonia, Tiffany & Co., Tesla, True With 22 blocks designated as a National Register Historic District, Old Pasadena abounds
Food Kitchen, Urban Outfitters, Zara, and more. with impeccably restored late 19th and early 20th-century architecture.
DINING
Maestro excels at
OLD TOWN PASADENA modern Mexican in
a plush setting, with
Old Pasadena, often referred to as Old Town The area was also an artistic center, the home to
a killer mezcal list to
NORTON SIMON MUSEUM Pasadena or just Old Town, is the original commercial Andy Warhol’s west coast museum debut and the
2.3 Miles from the Subject Property boot. Osawa delights
center of Pasadena, a city in California, United States first Marcel Duchamp retrospective, both at the sushi and shabu
CALTECH that arose from one of the most prosperous areas Pasadena Art Museum (one of the earliest modern shabu lovers with their
0.6 Miles from the Subject Property of the state, and had a latter day revitalization after a art museums in the country, now the Norton Simon meticulously prepared
period of decay. Museum). Before that, Pasadena was a center of Japanese cuisine and
suffragist and pacifist movements and other liberal artful presentation.
Old Pasadena began as the center of a research causes. By the late 1940s, the downtown area was The intimate,
hub where science and research institutions such as blighted by flophouses, dive bars and pawn shops. It Italian-inflected
Caltech and Jet Propulsion Laboratory and companies later became a hippie destination, with head shops, Union Restaurant
THE HUNTINGTON LIBRARY, ART such as Beckman Instruments, Aerojet were founded. adult bookstores and massage parlors. By the late is deservedly one
MUSEUM, AND BOTANICAL GARDENS The large concentration of such companies in the 1980s, Old Pasadena was undergoing a period of of Pasadena’s most
2.3 Miles from the Subject Property popular dinner
area gave it the nickname “Athens of the West”. urban renewal and regeneration.
destinations.
18 19P as ade n a, C A 9 1 1 0 1
Development Pipeline Map NEARBY DEVELOPMENTS
Subject Property
Under Construction
Recently Completed
7
6
1 3 913 Boston Ct Development 635 E Union St Development
AThe site is Ready To Issue for a developer The project, which broke ground in July
to build 12 luxury apartment units in the 2020 at the northwest corner of Union
2
10 heart of Pasadena’s Playhouse District. The Street and El Molino Avenue, calls for the
8 4
11 site is currently vacant with plans for a 4-story construction of a four-story building featuring
5 residential building. The project is within 40 apartments above 2,500 square feet of
12 walking distance to Lake Metro Station and ground-floor commercial space and a 70-car
aroud the corner from the prestigious Lake garage.
Avenue Financial District.
DEVELOPMENT PROJECTS CURRENTLY UNDER CONSTRUCTION
PROPERTY NAME DEVELOPER UNITS STORIES START YEAR FINISH YEAR
1 1407 West Glenoaks Blvd 1407 W Glenoaks Blvd, Glendale, CA 91201 AGD-AGC 55 3 2017 2021
2 635 East Union Street 635 E Union St, Pasadena, CA 91101 40 4 2020 2022
3 AMLI Old Pasadena 75 W Holly St, Pasadena, CA 91103 Lincoln Property Company/AMLI Residential 394 5 2019 2021
4 Avalon Monrovia 825 S Myrtle Ave, Monrovia, CA 91016 AvalonBay Communities 154 5 2020 2021
5 Esperanza at Duarte Station 1700 Business Center Dr, Duarte, CA 91010 MBK Rental Living 344 5 2021 2023
6 First Street Village E Magnolia Blvd & N 1st St, Burbank, CA 91502 275 6 2020 2022 The MW Lofts Development AMLI Old Pasadena (Completed)
7 LaTerra Select Burbank 777 N Front St, Burbank, CA 91502 573 7 2020 2023 The project, which would replace a collection of AMLI at Old Pasadena is a new, cozy residential
8 MW Lofts 709 E Walnut St, Pasadena, CA 91101 Prominent Development 115 6 2020 2022 small office buildings at the corner of Walnut and Apartment in Pasadena, CA, which rises to 5 floors
9 Olivewood Village North 535 Union St, Pasadena, CA 91101 Mill Creek Residential 86 6 2020 2022 El Molino Avenue, calls for the construction of a and consists of 400 lovely apartments. AMLI at
six-story edifice containing 115 residential units Old Pasadena is constructed by a renowned real
10 RinRose 3768 E Colorado Blvd, Pasadena, CA 91107 APPA Real Estate 100 5 2020 2022
above 14,000 square feet of ground-floor retail estate development company AMLI Residential,
11 The Huntington 1411 E Huntington Dr, Duarte, CA 91010 The Richman Group 161 4 2019 2022 space. Lincoln Property Company.
12 The Link 3909 San Fernando Rd, Glendale, CA 91204 Pacific Development Partners LLC 143 5 2017 2020
TOTAL 1,288 47 - -
20 21PASADENA, CA DEMOGRAPHICS
DEMOGRAPHICS BY RADIUS
MEDIAN AGE
39
PASADENA’S
49% 51%
TOTAL POPULATION 1-MILE 3-MILE 5-MILE
141,258 MALE FEMALE
2021 Population
2021 Households
43,205
20,432
188,046
73,868
493,454
178,224
EDUCATION $125,662 493,454 2021 Average Household
Size
2 2.5 2.7
Average HH income Population
within a 3-mile radius within a 5-mile radius Annual Growth 2021-2026 0% -0.2% -0.2%
2021 Median Age 37 40.4 40.6
2021 Owner Occupied
4,769 34,764 87,931
Households
10% 14% 22% 52% 2021 Renter Occupied
15,609 38,486 88,363
Less than High School or Some college or Bachelor’s Degree or 87,931 88,363 Households
2021 Average Household
High School GED Associates Degree Higher Owner Occupied Housing Renter Occupied Housing $99,960 $125,662 $116,140
within a 5-mile radius within 5-mile radius Income
2021 Median Household
$78,401 $95,272 $87,115
Income
Businesses 5,745 14,629 25,770
178,224 25,770
Households Businesses
within a 5-mile radius within a 5-mile radius
22 23P a s a d ena , CA 9 1 1 0 1
financial analysis
RENT ROLL ANNUALIZED OPERATING DATA
TERM
LEASE
PF PF INCOME AND EXPENSE CURRENT PRO FORMA
TENANT ADDRESS FLOOR SF SF% LEASE START LEASE EXP REMAINING RENT RENT/SF PF RENT RENT/ LEASE
TYPE Retail SF 9,253 Scheduled Lease Income $255,824 $409,107
(YRS) SF TYPE
Global Retail SF Occupied 9,253 100% CAM Reimbursement $18,634 $107,974
80 N
Liquidation Ground 3,000 26% 6/1/2019 5/31/2022 0.72 $6,000.00 $2.00 MG $9,000.00 $3.00 NNN Retail SF Vacant 0 0% Effective Gross Income $274,458 $517,081
Lake
Co.
Office SF 2,303 Vacancy @5% $15,512
Mike V. Wong 80 N
Ground 1,500 13% 11/1/2003 5/31/2024 2.72 $4,298.19 $2.87 MG $4,500.00 $3.00 NNN
O.D. APC Lake Office SF Occupied 915 40% Expenses $134,848 $134,848
80 N Office SF Vacant 1,388 60% Net Operating Income $139,610 $366,721
Kuei Ku Liu Ground 1,500 13% 9/1/2019 8/31/2024 2.97 $4,725.00 $3.15 MG $4,500.00 $3.00 NNN
Lake
Global EXPENSE BREAKDOWN PER YEAR PER SF
100 N Total SF 11,556
Liquidation Ground 3,253 28% 11/1/2019 5/31/2022 0.72 $4,500.00 $1.38 MG $9,759.00 $3.00 NNN Taxes @1.25% $93,750 $8.11
Lake
Co. Total Occupied SF 10,168 88%
Insurance $4,446 $0.38
100 N Total Vacant SF 1,388 12%
Helen Mathis Second 246 2% 4/1/2013 3/31/2014 MTM $535.50 $2.18 FS $676.50 $2.75 FS
Lake Repairs & Maintenance $8,725 $0.76
100 N Janitorial Cleaning $3,049 $0.26
VACANT Second 502 4% $0.00 $0.00 $1,380.50 $2.75 FS Average Retail Rent/SF $2.35 MG
Lake
Gardening $2,160 $0.19
100 N Average Office Rent/SF $1.97 FS
VACANT Second 557 5% $0.00 $0.00 $1,531.75 $2.75 FS
Lake HVAC $805 $0.07
100 N Pest Control $476 $0.04
VACANT Second 199 2% $0.00 $0.00 $547.25 $2.75 FS
Lake
Electricity $3,479 $0.30
100 N
VACANT Second 130 1% $0.00 $0.00 $357.50 $2.75 FS
Lake Gas $911 $0.08
Sharon 100 N Water, Sewer & Back Flow $2,074 $0.18
Second 323 3% 1/1/2009 12/31/2018 MTM $480.00 $1.49 FS $888.25 $2.75 FS
Shaheed Lake
Trash $2,185 $0.19
Sharon 100 N
Second 346 3% 1/1/2009 12/31/2018 MTM $780.00 $2.25 FS $951.50 $2.75 FS
Shaheed Lake Management $12,788 $1.11
Total 11,556 100% $21,318.69 $1.84 $34,092.25 $2.95 TOTAL $134,848 $11.67 / $0.97
24 25CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written
consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute
for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size
and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business
prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and
will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential
buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
SPECIAL COVID-19 NOTICE
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19
pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and
sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting
matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely
on their own projections, analyses, and decision-making.
NON-ENDORSEMENT NOTICE
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by,
said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.You can also read
