473 n fair oaks ave pasadena, ca 91103 · property overview medical/ retail 4,320 sf steve body,...

INVESTMENTOPPORTUNITYMEDICAL OFFICE 4,320 SF

473 N Fair Oaks AvePasadena, CA 91103

Population

1 Mile 3 Miles 5 Miles

35,353 192,463 481,988

Average Household Income


$76,339 $113,655 $108,143

Total Employees


47,741 125,892 219,658

Steve Body, MA, MSFVice [email protected] BRE Lic. #01927373

No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditionsimposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Lo-gos are for identification purposes only and may betrademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #01990696.

Property Highlights

• 2-Story Recently Renovated Medical Office Building

• Superior Condition

• Earthquake Retrofitted

• High-Visibility with Building Signage

• Proven Location - Long-Term Tenancy Since 2007

• Ideal for Single Tenant NNN Investor

• High-Quality Institutional Tenant

• Four (4) Exam Rooms and Four (4) Operating Areas

• Two (2) Doctor’s Offices; a Conference Room and Three (3) Bathrooms

• Convenient Floor Plan with Wheel Chair Access and ADA Lift

• Security Key Access/ Motion Sensors / Camera

• Convenient Patient and Employee Access from Surrounding Areas

• Ideal for 1031 Exchange Buyer

• 6.0% Cap Rate

PROPERTY OVERVIEW

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ICAL/ RETAIL 4,320 SF


NAI Capital, Inc. is pleased to introduce 473 North Fair Oaks Avenue (aka 2 W Villa Street) Pasadena, CA 91103.

The Property is a recently renovated 4,320 SF, 2-story medical office building in superior condition. Recently retrofitted for earthquake protection, the property was built in 1910 with masonry construction. The building is situated on a 4,726 SF (0.11 Acre) corner lot at the intersection of N. Fair Oaks Ave and W Villa Street. The Property has high-visibility and direct access to I-210 On-Ramp, just a block south of the site. There are 6 surface parking spaces with ample street parking.

The entire building is leased to Gabriele Aesthetics, a full-scale Dermatology practice that is home of the Pasadena Skin Cancer Center. There are four (4) exam rooms; four (4) operating areas; two (2) doctor’s offices; two (2) waiting areas; a conference room; three (3) bathrooms and large kitchen.

This is an ideal NNN investment opportunity. Tenant has been there for about 10 years. Recently renewed, long-term10 year lease with yearly increases, expires in 2027.

PROPERTY DETAILS

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Year Built 1910

Building Size 4,320 SF

Lot Size 4,727 SF (0.1 Acre)

Parking 6 Gated Surface Parking

Zoning FGSP-C-3B

APN # 5726-017-029

Lease 10 Year, Long-Term NNN Lease With Yearly Increases and Renewal Options

Cap Rate 6.00%


INVESTMENT SUMMARY

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Purchase Price $2,320,000

Net Operating Income $139,140

Lease 10 Year Single Tenant NNN Lease

Lease Expiration July 31, 2027

Cap Rate 6.00%

Projected Yield 9.09%

Projected Return on Equity 15.18%


Cash FlowYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

NOI PURCHASE 139,140 143,314 147,614 152,042 156,603 161,301 166,140 171,125 176,258 181,546 186,993

Re-Sale Value 3,252,044

Cash Flow (2,319,000) 139,140 143,314 147,614 152,042 156,603 161,301 166,140 171,125 176,258 181,546 3,439,036

Debt Service 108,274 108,274 108,274 108,274 108,274 108,274 108,274 108,274 108,274 108,274 1,231,388 Cash Flow After Debt Service

(695,700) 30,866 35,040 39,340 43,768 48,329 53,027 57,866 62,851 67,984 73,272 2,207,648

New Loan Assumptions70% LTV 4.5% IR 25 Year Amortization

LOCATION INFORMATION

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SITE

Location Highlights

• Desirable North Pasadena Location - LIMITED INVENTORY

• Direct Access to I-210 Freeway On-Ramp - One Block South of Property

• Corner Location – Strong Traffic Count – About 40,000 Cars per Day

• Close to Old Town Pasadena Shopping and Entertainment Area

• Minutes to Single & Multi Tenant Residential Neighborhoods, Rose Bowl Stadium and Aquatic Center

and “Millionaire’s Row”

• Dynamic Neighborhood: Pacific Oaks College Immediately Adjacent to Property

• Signalized Intersection with Dedicated Traffic Lights

• Well-Educated Labor Force with 219,658 Daytime Employees within a 5 Mile Commuting Distance

• Excellent Access to FWY 210, 134, and 110 to Downtown Los Angeles


AERIAL MAPS

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SITE

SITE


E Walnut St

Fair

Oak

s A

ve

E Colorado Blvd

E Villa St

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RETAIL AERIAL

E Walnut St

SITE

EEEEEEEEE WWWWWWWWWEEEEEEEE WWWWWWWWWWWE WE WE W

134

210

210

Fair O

aks Ave

E California Blvd

Fair O

aks Ave

E Colorado BlvdS

Raym

on

d A

veH

istoric R

te 66

OFFICE SUBMARKET

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• The Pasadena Office Market is One of the StrongestSub-markets in the Greater Los Angeles Area

• There are 677 Office Buildings in the City of Pasadena With aTotal Rentable Building Area (RBA) of 15,933,958 SF

• The Average Building Age is About 63.5 Years, OccupancyRate is About 92.1%

• The Demand for Office Space Remains Strong With 746,191SF Being Absorbed in the First Half of 2017, This Correspondsto About 86% of Total Absorption in 2016

• Leasing Activity in the First Half of 2017 was About 424,366SF or About 60% of Total Leases Signed in 2016

• The Average Rent is $37.13/SF on a Full Service Basis, ThisRepresents an About 6.9% Increase From the 2016 3rdQuarter Average of $34.74 / SF – FS

• The Average Asking Price is $521/SF With a Cap Rate of 4.9%

• Rents are Projected to Increase at an Aggressive RateWith Limited Supply of New Office Space Being Approvedfor Future Development


$3.00

$2.90

$2.80

$2.70

$2.60

$2.50Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’17

Rents reflect buildings of 20,000 SF and larger.Source: NAI Capital Research, CoStar

Ave

rage

Ask

ing

Ren

t ($

/SF/

Mon

th)

CHOSE PASADENATHE CITY WITH EXPONENTIAL INVESTMENT VALUE

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Excellent Business Environment

Pasadena is the economic center of San Gabriel

Valley with over 100,000 jobs and only 3.6%

unemployment. About 16 Million square feet of

office space is available to local companies. Health-

care, education and engineering are the top local

industries. Major non-governmental employers

include: Kaiser Permanente, Huntington Memorial

Hospital, California Institute of Technology, Jet

Propulsion Laboratory (JPL/NASA), Jacobs

Engineering, Parsons Corporation, Western Asset

Management, East West Bank, One West Bank,

and Tetra Tech. Other major employers include,

Bank of America, Pasadena Unified School District

and Pasadena City College.

Pasadena’s pro-business tax environment offers

no business, parking or utility taxes and an

educated labor force. Excellent freeway and public

transportation (Gold Line commuter rail) offers local

businesses the ability to draw from an enormous

labor force in the Greater Los Angeles area.

Pasadena is the ninth-largest city in Los Angeles County. The estimated population was 139,731, in 2013, making it the

183rd-largest city in the United States. Average household income is about $110,000. The city was incorporated in 1886

and it is situated on approximately 22.5 square miles, about 10 miles north-east from downtown Los Angeles. The City is

strategically located along the 210 corridor connecting Downtown Los Angeles to the San Gabriel Valley. The City is known

nationally for hosting the annual Rose Bowl football game and Tournament of Roses parade. Internationally, the City is

recognized for being the home of California Institute of Technology (Caltech).

• Apple

• Paseo Colorado

• Macy’s

• Target

• Urth Cafe

• Vroman’s Bookstore

• Pasadena Playhouse

• Whole Foods Market

• The Coffee Bean & Tea Leaf

• Umami Burger

• California Pizza Kitchen

• Vons

• CVS

• Americana at Brand

• Beyond the Olive

• Farm Fresh to You

• Trader Joe’s

• Grist & Toll

• Katie’s Bakery

• Pasadena Sandwich Co.

• Pavilions Place

• Creamistry Pasadena

• Ice Cream Lab

• Juice Lab 360

• Menchies Frozen Yogurt

• A&M Import

• 24 hour fitness

• Basecamp Fitness

• Miracle Spa

• Style Lounge

• Art + Science Café

• Blaze Pizza

• Coffee By the Books

• El Metate Café

• Foodie Cube

• Lee’s Sandwiches

• Lovebirds Café & Bakery

• Rounds Burgers

• Roy’s Hawaiian Fusion

• Ralph’s Groceries

• Men’s Suit Outlet

• Go China

• Freshii

• California Bank & Trust

• Bank of the West

• U.S. Bank

• University Club of Pasadena

• Braise & Crumble

Neighborhood AmenitiesPOPULAR SHOPS AND RESTAURANTS


OFFICE SALE COMPARABLES | PASADENA

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Location Sale Date Building SF Sale Price

No. Center Name Year Built Quality $/SF

Recent Sales

1824-826 E Union StPasadena

8/23/2016

1953

812

C

$575,000

$708

21928 Huntington DrSouth Pasadena

10/18/2016

1947

1,893

B

$1,000,000

$528

3659-673 E Walnut AvePasadena

6/7/206

1947

6,164

A

$4,350,000

$706

42554 WASHINGTON BLVD Pasadena

5/27/2016

1953

2,919

C

$1,350,000

$462

5336 Lake Ave Pasadena

4/11/2016

1952

6,000

B

$4,494,000

$749

6336 LakePasadena

7/29/2016

1936

2,250

B

$1,650,000

$733

7270 Vinedo AvePasadena

4/21/2017

1949

2,001

B

$1,150,000

$575

8540 S Marengo AvePasadena

8/2/2017

1920

2,898

B

$1,629,500

$562

9921 E Green StPasadena

8/25/2015

1947

2,120

B

$1,200,000

$566

Survey Average $621

Subject Property

473 N Fair Oaks AvePasadena

FOR SALE

1910

4,320

B

$2,319,000

$537


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473 n fair oaks ave pasadena, ca 91103 · property overview medical/ retail 4,320 sf steve body,...

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