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
1 Mile 3 Miles 5 Miles
$76,339 $113,655 $108,143
Total Employees
1 Mile 3 Miles 5 Miles
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
MED
ICAL/ RETAIL 4,320 SF
Steve Body, MA, MSFVice [email protected] BRE Lic. #01927373
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
MED
ICAL/ RETAIL 4,320 SF
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%
Steve Body, MA, MSFVice [email protected] BRE Lic. #01927373
INVESTMENT SUMMARY
MED
ICAL/ RETAIL 4,320 SF
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%
Steve Body, MA, MSFVice [email protected] BRE Lic. #01927373
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
MED
ICAL/ RETAIL 4,320 SF
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
Steve Body, MA, MSFVice [email protected] BRE Lic. #01927373
AERIAL MAPS
MED
ICAL/ RETAIL 4,320 SF
SITE
SITE
Steve Body, MA, MSFVice [email protected] BRE Lic. #01927373
E Walnut St
Fair
Oak
s A
ve
E Colorado Blvd
E Villa St
MED
ICAL/ RETAIL 4,320 SF
Steve Body, MA, MSFVice [email protected] BRE Lic. #01927373
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
MED
ICAL/ RETAIL 4,320 SF
• 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
Steve Body, MA, MSFVice [email protected] BRE Lic. #01927373
$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
MED
ICAL/ RETAIL 4,320 SF
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
Steve Body, MA, MSFVice [email protected] BRE Lic. #01927373
OFFICE SALE COMPARABLES | PASADENA
MED
ICAL/ RETAIL 4,320 SF
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
Steve Body, MA, MSFVice [email protected] BRE Lic. #01927373
MED
ICAL/ RETAIL 4,320 SF
Steve Body, MA, MSFVice [email protected] BRE Lic. #01927373
ADDITIONAL PROPERTY PHOTOS