21.7 ACRE DEVELOPMENT OPPORTUNITY

Transcription

1 21.7 ACRE DEVELOPMENT OPPORTUNITY EXCELLENT FREEWAY ACCESS & FRONTAGE FLEXIBLE FOR MULTIPLE USES STRATEGIC INLAND EMPIRE LOCATION AT I- & HARLEY KNOX BOULEVARD PERRIS, CA HARLEY KNOX BLVD OLEANDER AVE A CBRE NATIONAL PARTNERS INVESTMENT OPPORTUNITY

2 Perris Land Perris, California The Offering CBRE, Inc. is pleased to present the opportunity to acquire a 21.7 acre land site located in the city of Perris in the Inland Empire. Demand continues to be strong for land sites in the Inland Empire given the very few vacant land parcels that remain. In fact, this is one of the last sites remaining in Perris and the City has expressed a willingness to accommodate a variety of uses including industrial, office, or retail. One option includes the potential to rezone the site in the future to industrial and accommodate a building in the 350,000 SF size range. A conceptual site plan is included later in the package. This is an ideal distribution location with proximity to and frontage on Interstate, and is located just minutes from March AFB Inland Port. Site Overview Address Oleander Avenue & Interstate, Perris, CA Size 21.7 acres Parcel # , 046, 044, 038, 037, 035, 034 and 008 INVESTMENT THESIS This is an excellent opportunity to acquire a 21.7 acre land site in the highly desired Inland Empire market with direct access to the I-. LAND ACQUISITION SUMMARY Large, well located land site in the Inland Empire Desirable Inland Empire location Flexibility for multiple uses including industrial, office and retail Potential to rezone to industrial and accommodate a ±350,000 SF industrial building. There has been a strong recovery for this size range as evidenced by the 4.3% vacancy rate Several Fortune 500 companies within close proximity Institutional ownership in the submarket I- Freeway visible HARLEY KNOX BLVD SUBJECT OLEANDER AVE 1

3 Executive Summary INVESTMENT HIGHLIGHTS Flexibility for Multiple Potential Uses All of the parcels fall within the Perris Valley Commerce Center Specific Plan. The property is currently in a commercial zone, though it has the potential to be rezoned. Given the projected growth in population and employee base along the corridor, the potential for most commercial uses (retail, office or industrial) at the subject site will have a very positive outlook. Strong E-Commerce Growth Growing e-commerce activity is driving demand for larger warehouses which will benefit the site. E-commerce sales are growing at more than five times the rate of traditional retail sales, and are expected to increase by 61% by 2016, with projected sales reaching $327 billion. The site has development potential for a variety of uses including Industrial, retail and office and the City is very willing to work with ownership on a variety of uses give this is one of the few remaining sites left in Perris, CA. Industrial opportunities in this market are in high demand. At the end of 2014, the industrial market generated a total of 33.4 million square feet of gross activity and 16.1 million square feet of net absorption. The Inland Empire East market accounted for 15.7 MSF and 9.3 MSF of the totals respectively. The Inland Empire industrial market has a low vacancy rate of 4.5%. Larger Land Development The site offers users, developers, and investors a unique opportunity to acquire an ideally-located land development site in the Inland Empire, one of the most desirable areas in Southern California. MARCH AIR FORCE BASE The site totaling nearly 22 acres offers an excellent opportunity to acquire a critical mass of land in the highly sought after Perris submarket. Very few large, vacant land parcels remain in the Inland Empire, and the site s size allows for a large scale commercial development (office or retail) or a large industrial development in the 350,000 SF range. In addition to the ±350,000 SF industrial building, there is also excess space for trailer storage or a ±30,000 SF industrial building. Gross leases and user sales under 100,000 sq. ft. accounted for 81% of the transaction volume that occurred in Q3 2014, representing 96 of the 113 transactions. This sector could see significant growth in rents and sale prices if the demand continues. 2 PERRIS LAND

4 Perris Land Perris, California Increased User Activity High profile corporate neighbors include: The size of the footprint and credit of tenants along the I- corridor bode well for absorption and prospective tenant interest in the site. The desirable market conditions are demonstrated by the 53 users in the market that have requirements for million square feet in the Inland Empire. Strategic Inland Empire Location with Freeway Frontage Aldi Amazon.com Big 5 Deckers Outdoor Hanesbrands Harbor Freight Tools Home Depot Kraft Foods Lowe s Home Improvement Minka Lighting Pepsi Philips Electronic Proctor & Gamble Ross Stores Sysco Foods Walgreen s Whirlpool The site is strategically located off the I- in Perris with excellent freeway access. The dwindling supply of available land in Perris, combined with increasing tenant demand, has pushed demand further south down the I- corridor. As a result, the site will attract users who cannot find suitable space in alternate markets. The market demand should continue to drive positive net absorption and rising rents into the future. Low vacancy rates, a lack of available land and continued absorption are the main contributors to rent growth. Due to these market fundamentals, the potential for continued growth and appreciation remain intact. High Profile Surrounding Tenants and Institutional Owners The dwindling supply of available land in the Inland Empire West is driving tenant demand for buildings in the Inland Empire East. This strategic I- corridor location is a hotspot for Fortune 500 tenants and institutional investors. The I- Corridor has experienced a tremendous expansion in its employment base and population. Moreno Valley /Perris is now home to companies such as Amazon, Home Depot, Lowe s, Walgreens, Ross Stores, Whirlpool, Sketchers, and others. This growth has caught the attention of some of the top public homebuilders who are either building new subdivisions and/or acquiring land positions to fill their future pipeline. This type of activity should have a significant effect on the office and retail potential for the site. LNR Meridian Business Sares Regis TC Majestic DSC MARCH AFB Discount Tire Majestic Rados Western Realco P&G Prologis Lowes Amazon Minka First Industrial O Reilly Kearny Amazon Harbor Walgreens First Industrial Ryder Ryder iherb Deckers Ross Western IBG Realco Home Depot Pelican Ross IDI Prudential Optimus Lowes Sares Regis Hanes Whirlpool Ross Rados Ridge/Duke Ritchie Bros Prudential Thrifty Oil McShane IDS IDS IDI Coudures IDS 3

5 Executive Summary CONCEPTUAL PLAN FOR INDUSTRIAL Note: This is a conceptual plan. It is based on preliminary information which is not fully verified and may be incomplete. It is meant as a comparative aid in examining alternate development strategies and any quantities indicated are subject to revision as more reliable information becomes available. AREA Gross area in sq. ft. 949, Gross area in acres 2 Net area in sq. ft. 933, Net area in acres 2 BUILDING AREA office 15, w arehouse 345, TOTAL 360, COVERAGE (Base on net) 38 AUTO PARKING REQUIRED 1st 1/1,000 sf 2nd 1/2,000 sf Over 1/5,000 sf TOTAL AUTO PARKING PROVIDED standard (9'x19') TRAILER PARKING PROVIDED trailer (10'x55') Zoning Ordinance for City Current Zoning Designation - Perris Valley Comm Center SP (PVCC-SP) - Com Proposed Zoning Designation - PVCC-SP - (G.I) MAXIMUM FLOOR AREA RATIO F.A.R SETBACKS Front Yard / Street side Side Yar Local / Collector St. - 10' Adjoining non-re Arterials - 15' Adjoining residen Expressw ay/freew ay - 20' Rear Yard Adjoining non- residential - 0' Adjoining residential - 20' LANDSCAPE REQUIRED Percentage 1 LANDSCAPE REQUIRED Percentage (base on net) 17 in sq. ft. 165, 4 PERRIS LAND

6 Perris Land Perris, California PARCEL MAP 5

7 Executive Summary REGIONAL MAP San Fernando Whiteman Lake Arrowhead Van Nuys Sherman Oaks 170 Bel Air Hollywood Beverly Hills LAX Hawthorne Manhattan Beach Torrance Rancho Palos Verdes BNSF Burbank Burbank South Los Angeles Gardena Los Angeles Lynwood Compton Long Beach Port of Los Angeles San Pedro INTERMODAL YARDS Pasadena Monterey Park 5 2 Montebello 1 3 Pico Rivera 7 Downey Lakewood UNION PACIFIC 1. BNSF Commerce Eastern 1. UP City of Industry 2. BNSF Sheila 2. UP Colton 3. BNSF Hobart 3. UP Dolores 4. BNSF San Bernardino 4. UP LATC 5. BNSF Watson / Wilmington 5. UP Mira Loma 6. BNSF La Mirada 6. UP Anaheim 7. BNSF Pico Rivera 7. UP Montclair 8. UP Yermo Norwalk Seal Beach 405 El Monte Cypress Walnut 60 Chino Chino Hills 6 Westminster Huntington Beach Fullerton 6 Citrus Covina 55 Newport Beach 57 Anaheim 91 Orange Santa Ana John Wayne 1 57 Yorba Linda Irvine Rancho Rialto Claremont Cucamonga Fontana 7 Pomona Laguna Beach Anaheim Hills 241 Lake Forest Laguna Niguel Ontario Foothill Ranch Mission Viejo Ontario International Mira Loma Eastvale Norco Corona El Cerrito La Sierra 15 Riverside San Bernardino Colton Loma Linda Grand Terrace University Canyon Lake Lake Elsinore 15 Wildomar Highland Moreno Valley Perris Redlands Murrieta Perris Reservoir Sun City Menifee Temecula 38 Yucaipa Calimesa 74 6 PERRIS LAND

8 Perris Land Perris, California LOCAL MAP Arnold Dr Hawthorne Ave Mayfield Ln Memory Ln Village W Dr Clark St Manuel L Real Elementary School General Old Golf Course Lieutenant General Archic J Old Jr Golf Kuder Ave Corson Ave Oleander Ave Woodward Ave Burch St Nance St Bailey St Nandina Ave Nandina Ave Freeway Bldg Materials Oleander Ave Bohnam St Markham St Markham St W Markham St Mary St Dawes St Lane St Byron St Jean St Martin St Robinson Day St Day St Nance St Henry Terrace Kinney St Alviso Dr Darin Dr Decker Rd 8 St Rios Ave Redwood Dr Decker Rd Universal Specialty Vechicle Beck St Lisa Ln Alviso Dr Martin St Perry St Cougar St Rios Ave Harvill Ave Palatium Cir Western Way March Air Reserve Base W Oleander Ave California Ave Messenia Ln ve Patterson Ave Nevada Ave Mi Rancho Tacos & Pizza Arco Travel Zone Center Nevada Rd Heacock St Webster Ave N Webster Ave Cardina Ave Harley Knox Blvd Brennan Ave Brennan Ave rennan Ave W Perry St Indian St Indian St San Michele Rd iherb nc Nandina Ave Ramona Expy Kramerie Ave Angella Way Freeport Dr Northern Dancer Dr Fortune Bay Ln Superior Ave Citadel St Highwood St Rivard Rd W Perry St es St N Perris Blvd Perris Blvd E Nance St Polaris St Kellogg St Market St Native St Trump St E Dawes St Goldrush St Morning Dove Way Granville St War Cloud Dr Sir Barton Way Harker Ln Saddlebrook Ln Modular Way Globe St Century St Plumeria Ln Ross Stores Distribution Center Lal Palmas E Markham St McDonald s 7

9 CAPITAL MARKETS EXPERTS Darla Longo Vice Chairman/Managing Director Lic CBRE 4141 Inland Empire Blvd., Suite 100 Ontario, CA Barbara Emmons Vice Chairman Lic CBRE 400 S Hope Street, 25th Floor Los Angeles, CA LOCAL MARKET EXPERT Grant Ross First Vice President Lic CBRE grant.ross@cbre.com 400 S Hope St, 25th Floor Los Angeles, CA NORTHEAST Michael D. Hines Robert Fahey Lizann McGowan Brian Fiumara Jerome Kranzel Brad Ruppel SOUTHEAST Chris Riley Frank Fallon Brian Budnick Jennifer Klingler SOUTH CENTRAL Jack Fraker Josh McArtor Jonathan Bryan Heather McClain NORTH CENTRAL Mike Caprile Ted Staszak Stephanie Park DEBT & STRUCTURED FINANCE Steve Roth Steve Kundert WEST Darla Longo Barbara Emmons Rebecca Perlmutter DEBT & STRUCTURED FINANCE Val Achtemeier Offering integrated real estate capital markets solutions from strategy to execution delivered by a seamless national partnership 2015 CBRE, Inc. The information contained in this document has been obtained from 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. Macintosh HD:Users:JMcVay:Box Sync:Southern California:GLAOC Marketing:Property Marketing:Ontario:Perris:SEC Harley Knox & I-:SEC Harley Knox & I-_OM_v04JM.indd