greenstone logistics center - a core industrial...

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CLASS A, NEWLY CONSTRUCTED, CROSS-DOCK INDUSTRIAL BUILDING TOTALING 327,934 SF100% LEASED TO FEDEX GROUND THROUGH JUNE 2029DESIRABLE MID-COUNTIES LOCATION WITH EXCELLENT FREEWAY ACCESS & PROXIMITY TO THE PORTS

11688 GREENSTONE AVENUE, SANTA FE SPRINGS, CA

GREENSTONE LOGISTICS CENTER - A CORE INDUSTRIAL ACQUISITION

A CBRE NATIONAL PARTNERS INDUSTRIAL INVESTMENT OPPORTUNITY

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Greenstone Logistics CenterSanta Fe Springs, CA

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CBRE, Inc. is offering an excellent opportunity to acquire Greenstone Logistics Center, a brand new Class A cross-dock industrial building totaling 327,934 SF. This state-of-the-art industrial building is 100% leased to FedEx Ground through June 2029. Constructed in 2014, the property offers best in class features including LEED certification, 32’ clearance, 4,000 amps of power, ESFR sprinklers, above standard dock high loading and 100% concrete site areas (truck courts, yard areas and parking areas). The property also features 2.27 acres of excess land for trailer or auto parking, which is rare in infill markets like the Mid-Counties.

Greenstone Logistics Center is strategically located in the highly desirable Mid-Counties industrial submarket in Los Angeles County. This location offers excellent freeway access to interstates I-5, I-605, I-105, SR-91, SR-710, as well as SR-60. Greenstone Logistics Center is 19 miles to Long Beach International Airport, 26 miles to John Wayne International Airport, 24 miles to Los Angeles International Airport and 39 miles to Ontario International Airport, and 21 miles to the Ports of Long Beach and Los Angeles.

Address 11688 Greenstone AvenueSanta Fe Springs, CA 90670

Square Footage 327,934 SF

Land Size 15.74 Acres Including 2.27 Acres of Excess Land

Office SF/% 13,318 SF/ 4%

Tenant FedEx Ground

Lease Expiration June 2029

Occupancy 100%

Dock High/Grade Level Loading 63/4

Truck Courts 130’ 6” - 131’ (Cross-dock)

Clear Height 32’

Year Built 2014

Year 1 NOI $3,006,548

The Mid-Counties area is situated at the epicenter of the Southern California basin bordering Los Angeles and Orange counties and has one of the lowest vacancy rates in the country. There are strong barriers to entry in the Mid-Counties market due to the lack of available land for similar types of development.

The Offering

Property Summary

• Long-Term lease to FedEx Ground• Highly desired core industrial location• Class A LEED certified cross-dock industrial building in the Mid-Counties

submarket with best in class features• 100% concrete yard and parking areas• Significant investment by tenant and landlord• Rare excess land for trailer parking• Strategic location with access to multiple major freeways and the Ports

of LA/Long Beach• Mid-Counties continues to post positive market statistics with historically

low vacancy regardless of where we are in the cycle and 3 years of positive net absorption

Greenstone Logistics Center Highlights

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Executive Summary

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PROPERTY HIGHLIGHTSClass A, Cross-Dock Industrial Building totaling 327,934 SF• Best in class asset with superior features including 32’ minimum clearance, ESFR

sprinklers, 4,000 amps and approximately 13,318 SF of office.• Irreplaceable, concrete- tilt up building offers cross-dock loading with all concrete

truck courts and auto parking areas, 63 dock positions with dock equipment at each door (leveler or edge of dock, fan, light, seal, shelter), ample trailer parking with fenced, secured, lit truck court.

• LEED Certified - LEED certification provides maximum energy efficiency, which leads to reduced operating costs and substantial tax benefits. In addition, LEED certification is a marketing advantage that can command higher rental rates when compared to non-LEED certified buildings.

• The 2.27 acres of excess land for trailer parking is unique and desirable in infill markets like Mid-Counties. This concrete yard area is 100% concrete, fully secured and lighted.

• The property offers multiple leasing options due to a flexible, divisible design that accommodates single or multi-tenant configurations.

TENANCY HIGHLIGHTS100% Leased to FedEx Ground Package System Inc. through 2029• The property is 100% leased to FexEx Ground through June 2029.• An operating company of air-express giant FedEx, FedEx Ground provides ground

delivery of small packages throughout the US and Canada.• Headquartered in Pittsburgh, PA, FedEx Ground was founded in 1985 as RPS and

rebranded as FedEx Ground is 2000. The company has an average daily volume of more than 4.5 million packages and employs more than 65,000 employees. The parent company generated $11.6 billion in revenue in FY2014 (including FedEx SmartPost).

• At FedEx Ground, revenues increased 10% in 2014 primarily due to volume growth from market share gains and the expansion of e-commerce.

Significant Investment by Landlord and TenantBoth the landlord and tenant have invested substantial capital to improve the site in order to facilitate operations. FedEx Ground is investing a significant amount of their own capital (±$31.7 M), demonstrating their commitment to this building and the area. Some of these improvements include:

• An extensive material handling/conveyor system with thickened footings along north/south dock lines and down the middle of the building for FedEx conveyor equipment with sprinkler system.

• Dock equipment (levelers or edge of docks, fans, lights, seals, shelters) throughout the warehouse per FedEx’s requirements.

• T5 high output lighting throughout warehouse.• High velocity ceiling-mounted fans in the warehouse.• Additional louvers and rooftop-mounted exhaust fans in warehouse to increase

warehouse air changes to 3/hour.• Extensive IT wiring and electrical infrastructure.• Security equipment.• Emergency generator.

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4Q 2014 Year Over Year Highlights for Mid-Counties Market

• 47% INCREASE IN GROSS ABSORPTION• 35% DECREASE IN VACANCY• HIGHEST QUARTERLY NET ABSORPTION SINCE 4Q2005 (10 YEARS!)• 7% INCREASE IN ASKING LEASE RATES• 34% INCREASE IN ASKING SALE PRICES

This is truly an extraordinary opportunity to acquire a core industrial building with state-of-the art features in one of the most desired industrial submarkets in the country.

LOCATION HIGHLIGHTSStrategic Mid-Counties Location• Located between Greenstone Avenue and Shoemaker Avenue,

the site offers a central location in the Mid-Counties submarket with immediate access to I-5, I-605, I-105, SR-710, SR-91, and SR-60 Freeways.

• The property is 19 miles from the Long Beach Airport, 24 miles from Los Angeles International Airport, 26 miles from John Wayne Airport and 39 miles from Ontario International Airport, providing an excellent location to service Southern California and the Western United States.

• The Port Complex of Los Angeles/Long Beach is just 21 miles from the property, an important benefit as transportation costs continue to rise.

MARKET HIGHLIGHTS• The Mid-Counties industrial market realized the highest level of

gross absorption in ten years in 2014 at 8.9 MSF. 2015 promises a positive trend of optimism in the market amongst occupiers, developers and investors.

• While Class A space remains in limited supply which has been the case for well over a year, Class B space is also in limited supply.

• The market ended the fourth quarter of 2014 with a 2.0% vacancy rate, well below the national average and down from 3.1% in 4Q2013. The vacancy rate in this market never reached 5%, even in the down turn.

• The supply of available buildings over 100,000 SF has been cut in half from 23 in January 2014 to 12 in January 2015. There are currently only 3 buildings over 100,000 SF available in Santa Fe Springs, one of the buildings is vacant and the other two are available. All 3 of these buildings are Class A.

• The Mid-Counties industrial market continues to grow with CBRE Econometric Advisors’ market rent growth forecast of 6.3% in 2016, 6.2% in 2017, 6.3% in 2018, 5.9% in 2019 and 5.2% in 2020 for Santa Fe Springs.


Executive Summary

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GREENSTONE LOGISTICS CENTER - RENDERING

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1. UP City of Industry2. UP Colton3. UP Dolores4. UP LATC5. UP Mira Loma6. UP Anaheim7. UP Montclair8. UP Yermo

UNION PACIFIC

GREENSTONE LOGISTICS CENTERSANTA FE SPRINGS


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GREENSTONE LOGISTICS CENTER


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SURROUNDING TENANTS

GREENSTONE AVE

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SHOEMAKER AVE

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11720 GREENSTONE AVENUENOT A PART

ADDITIONAL FEDEX PARKINGCOTERMINOUS LEASE EXPIRATION & FIXED RENEWAL OPTIONS

PERFORMANCE TEAM

AMERICANSPORTSWEAR

ACIINTERNATIONAL

CRATE & BARREL

7-11

METAL CENTER

MARUCHIAMERICAN CORP

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Property Descriptions

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GREEN

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SF FOR

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500 Citadel D

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alifornia 90040Phone: 323.720.8484 | Fax: 323.720.8474 | w

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.lee-associates.comC

orporate ID#

01125429

EXCLU

SIVELY M

ARKETED

BY:

TIM C

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IN, SIO

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SMITH

Senior Vice PresidentPrincipal

323.767.2088

310.965.1774

[email protected]

donsmith@

lee-associates.comLicense ID

# 00916418

License ID#

00787728

Another Quality Developm

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This information has been furnished from

sources which w

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SHOEMAKER AVE

N

GATES

131’

28 DOCK DOORS

470’

658’52’

50’

327,934 SFLEASE EXP: JUNE 2029

OFFICE13,318 SF

REMOTERESTROOMS

REMOTERESTROOMS

382’-2”

BATTERYCHARGING AREA

ELECTRICALROOM

2 GL2 GL

130’-6”

RAMP

11720 GREENSTONE AVENUENOT A PART

ADDITIONAL FEDEX PARKING

95 TRAILER STALLS

82’-10”

GATES

40’ DRIVEWAY 30’ DRIVEWAY GREENSTONE AVE

40’ DRIVEWAY GATES

BATTERYCHARGING AREA

35 DOCK DOORS

DOCK HIGH DOOR

GRADE LEVEL DOOR

SITE PLAN

Offering integrated real estate capital markets solutions from strategy to execution—delivered by a seamless national partnership

www.cbre.com/np

© 2014 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.

NORTHEASTMichael D. HinesRobert FaheyLizann McGowanBrian FiumaraJerome KranzelBrad Ruppel

SOUTHEASTChris RileyFrank FallonBrian BudnickJennifer Klingler

SOUTH CENTRALJack FrakerJosh McArtorJonathan BryanHeather McClain

WESTDarla LongoBarbara EmmonsRebecca PerlmutterMike KendallAndrew BrinerGina Christen

DEBT & STRUCTUREDFINANCEVal Achtemeier

NORTH CENTRALMike CaprileTed StaszakStephanie Park

DEBT & STRUCTUREDFINANCESteve RothSteve Kundert

CAPITAL MARKETS EXPERTS DEBT & STRUCTURED FINANCE

Val AchtemeierExecutive Vice PresidentLic. 01868169+1 213 613 [email protected] South Hope St.Los Angeles, CA 90071

Andrew Briner, CCIMFirst Vice PresidentLic. 01821872+1 909 418 [email protected] Inland Empire Boulevard, Suite 100Ontario, CA 91764

Darla LongoVice Chairman/Managing DirectorLic. 00639911+1 909 418 2105 [email protected] Inland Empire Blvd., Suite 100Ontario, CA 91764

Rebecca Perlmutter Finkel, CFAVice PresidentLic. 01838624+1 310 922 [email protected] California Street, 44th FloorSan Francisco, CA 94111

Barbara EmmonsVice ChairmanLic. 00969169+1 213 613 [email protected] South Hope St. 25th FloorLos Angeles, CA 90071

Michael KendallSenior Vice PresidentLic. 01895979+1 909 418 2034 [email protected] Inland Empire Blvd, Suite 100Ontario, CA 91764

LOCAL MARKET EXPERT

Tim Cronin, SIOR Senior Vice PresidentLic. 00916418Lee & Associates ®500 Citadel Dr., Suite 140 Commerce, CA 90040+323 767 2088 [email protected]

greenstone logistics center - a core industrial...

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