of ce building for sale owner-user opportunity offering ... · westlake village, a city of just 5.4...

www.31248oakcrest.com

31248 Oak Crest Drive

Westlake Village, CA

Offi ce Building For SaleOwner-User Opportunity

Offering Memorandum

DISCLAIMERThis confi den al Off ering Memorandum (this “Memorandum”) is being delivered subject to the terms of the Confi den ality Agreement personally or electronically signed by you (the “Confi den ality Agreement”) and cons tutes part of the Evalua on Material (as defi ned in the Confi den ality Agreement). It is being given to you for the sole purpose of evalua ng the possible acquisi on of 31248 Oak Crest Drive, Westlake Village, CA 91361(the “Property”), and is not to be used for any other purpose or made available to any other party without the prior wri en consent of the “Owner” or the lis ng team (“Voit Real Estate Services or Lee & Associates”).

This Memorandum was prepared by the Broker based on informa on supplied by the Owner and the Broker. It contains selected informa on about the Property and the real estate market but does not contain all the informa on necessary to evaluate the acquisi on of the Property. The fi nancial projec ons contained herein (or in any other “Evalua on Material”, including any computer diske es or fi les distributed to you via email from Broker accessible online through Broker’s website) are for general reference only. They are based on assump ons rela ng to the general economy and local market, among other factors. Accordingly, actual results may vary materially from such projec ons. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents.

While the informa on contained in this Memorandum and any other Evalua on Material is believed to be reliable, neither Broker nor Owner guarantees its accuracy or completeness. Because of the foregoing and since the Property will be sold on an “As-Is, Where-Is” basis, a prospec ve purchaser must make

its own independent inves ga ons, projec ons and conclusions regarding the acquisi on of the Property without reliance on this Memorandum or any other Evalua on Material. Although addi onal Evalua on Material, which may include engineering, environmental or other reports, may be provided to qualifi ed par es as the marke ng progresses, prospec ve purchasers should seek advice from their own a orneys, accountants, and engineering and environmental experts.

Owner expressly reserves the right, at its sole discre on, to reject any off er to purchase the Property or to terminate any nego a ons with any party at any me with or without wri en no ce. Owner shall have no legal commitment or

obliga ons to any prospec ve purchaser unless and un l a wri en purchase and sale agreement has been fully executed, delivered and approved by Owner and any condi ons to Owner’s obliga ons therein have been sa sfi ed or waived.

Owner has retained Broker as its exclusive broker and will be responsible for any commission due to Broker in connec on with a sale of the Property pursuant to a separate agreement. Broker is not authorized to make any representa on or agreement on behalf of Owner. Each prospec ve purchaser will be responsible for any claims for commissions by any other broker in connec on with a sale of the Property if such claims arise from acts of such prospec ve purchaser or its broker.

This Memorandum is the property of the Owner and Broker and may be used only by par es approved by the Owner and Broker. No por on of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permi ed under the Confi den ality Agreement.

ADAM GEIGERAssociateLic #[email protected]

JOE JUSKOPrincipalLic #[email protected]

EXCLUSIVELY OFFERED BY:

Licensed as Real Estate Broker by the CA Bur of Real Estate. ©2017 Voit Real Estate Services, Inc. All Rights Reserved. License # 01991785.

STAN KWAKVice PresidentLic #[email protected]

FRANK GERACIExecu ve Vice PresidentLic #[email protected]

JUAN GUTIERREZSenior Vice PresidentLic #01777990909.545.8008jgu [email protected]

TABLE OF CONTENTS

EXECUTIVE SUMMARY 4PROPERTY OVERVIEW 6AREA DESCRIPTION 11DEMOGRAPHICS 15FINANCIAL INFORMATION 22SALES COMPARABLES 31

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

31248 Oak Crest Drive is a high image, mul -tenant, free standing offi ce building nestled into the Santa Monica Mountains, strategically located along the Ventura (101) Freeway in the highly desirable City of Westlake Village, CA.

Designed by the award winning team at Hill Pinckert Architects Inc., the premises is comprised of 53,133 RSF on two fl oorplates, with an impressive open atrium lobby entrance. The premises is situated on over 3.5 acres of land zoned BP (Business Park), and is located within the master planned Westlake Village Spectrum.

Newly constructed in 1998, the premises is Class A in design, and has been impeccably maintained as a corporate headquarters facility for a select few, top er companies. Adjacent property owners include the City Hall and Library of the City of Westlake Village, as well as many high profi le, publicly traded companies

31248 Oak Crest Drive off ers fl exible fl oorplan design, extensive data/com infrastructure, full height windows on all perimeters, state of the art solar power array, plus beau ful outdoor lunch area with koi ponds, waterfalls, gazebos and BBQs, along with excellent surface parking.

Within easy access to world class ameni es such as Four Seasons Resort, restaurants and support commercial/retail services, 31248 Oak Crest Drive provides all of the elements for success.

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PROPERTY OVERVIEW

PROPERTY OVERVIEW

THE PROPERTY: 31248 Oak Crest Drive

Westlake Village, CAPRICE: $13,825,000YEAR COMPLETED: 1998APN: 2057-022-014BUILDING SIZE:

LOWER LOBBY

1ST FLOOR

2ND FLOOR

TOTAL AREA

1,343 SF

25,543 SF

26,247 SF

53,133 SFTOTAL LAND AREA: 155,944 SF

3.58 AcresPARKING:

STANDARD

HANDICAP

TOTAL PARKING

188 Stalls

6 Stalls

194 StallsOCCUPANCY: 100% (Note: 35,197 SF Available for Par al

Owner/User)ZONING: BP

Business Park - City of Westlake VillageCONSTRUCTION TYPE: Concrete Tilt-UpELEVATORS: YesOFFICE UNITS: Flexible 1st & 2nd Floor Combina ons

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PARCEL MAP 8

FLOOR PLAN 9

AERIAL 10

AMENITIES AERIAL 11

EXTERIOR AREA 12

AREADESCRIPTION

AREA DESCRIPTIONWestlake Village, a city of just 5.4 square miles, is located in the Conejo Valley, encompassing southeastern Ventura County and a part of northwest Los Angeles County in Southern California. It is bordered by Thousand Oaks to the north and west, Agoura Hills to the east and the Santa Monica Mountains to the south.

The city itself straddles Los Angeles and Ventura coun es, and the Subject Property, 31248 Oak Crest Drive, resides in Los Angeles County.

Westlake Village sits along the Ventura (101) Freeway with access to the San Fernando Valley to the south/east and the Central Coast and San Francisco to the north/west. It is situated along the so-called 101 Tech Corridor named for the many technology and biotech companies located between Woodland Hills at the southeastern end and Santa Barbara at the northwestern boundary.

A master-planned community, Westlake Village has a popula on of 8,423 residents with a median household income of $126,500. Many of its residents se led in the area for its emphasis on quality of life. The city’s economic development policies embrace slow growth, which both limits supply and enhances the value of the commercial proper es and provides for ample open space for numerous recrea onal ac vi es.

Thanks to its careful planning, Westlake Village and the other Conejo ci es of Thousand Oaks and Agoura Hills off er a well-balanced mix of residen al areas, award-winning public and private schools and shopping centers along with 12,000 acres of open space and green belt areas.

At the center of this city is Westlake Lake, a 125-acre, man-made lake with eight miles of shoreline surrounded by over 1,300 homes. As part of the Conejo Valley, the city also off ers easy access to numerous hiking, biking and equestrian trails and over four dozen parks with tennis and basketball courts, so ball and soccer fi eldsand numerous organized children’s ac vi es as well as golf and tennis clubs.

Although it has its beginnings as a bedroom community, Westlake Village’s loca on in the center of the Tech Corridor, its high-end housing and its quality of life features have a racted senior corporate execu ves and entrepreneurs, many of whom have brought their businesses with them over the past several decades.

As a result, Westlake Village is now home to more than 790 businesses. The city’s diverse economic makeup includes professional services fi rms,technology and biotech companies and a number of corporate headquarters. Some of the largest employers include:

• Dole Food Co.

• Four Seasons Hotel14

AREA DESCRIPTION CONT.• Jafra Cosme cs

• Guitar Center, Inc.

• Tarcine BioMed USA

• CDG Biotech Corp.

• Axicom, Inc.

Ranked among the Top 10 Least Expensive Ci es to Do Business in Los Angeles County by the Los Angeles Business Journal, Westlake Village imposes no business tax or business license fees and no u lity taxes.

The Conejo Valley has been seeing increased offi cedemand over the past year, much of it focused in Westlake Village. The area off ers just under 10 million square feet of offi cespace and has seen vacancies decline from 11.7 percent a year ago to 10.9 percent as of the third quarter of 2016.

As demand has increased, so too have average asking lease rates. Asking rates for offi cespace throughout the Conejo Valley averaged $2.44 per square foot in the third quarter, up from $2.14 per square foot a year ago.

Offi cespace in Westlake Village is among the most sought a er in the Conejo Valley for its a rac ve low-rise campuses with lush landscaping and its proximity to numerous ameni es.

The newest among them, Shoppes at Westlake Village, is anchored by Target and includes Total Woman Gym + Spa, Tillys, The Walking Company and Carriere Menswear. Restaurants include Jeannine’s Gourmet Food Hall, Figueroa Mountain Brewing Co., In-N-Out and Olio e Limone Ristorante.

The Promenade at Westlake features bou ques such as Joie and lululemon athle ca and a diverse range of dining op ons from Paul Mar n’s American Grill to lemonade along with a luxury cinema with full bar and restaurant and reserved sea ng.

And at the newly renovated Westlake Plaza, shoppers can fi ndSprouts Farmers Market, Vons and Gelsons along with Mendocino Farms and Le Pain Quo dien, among many op ons.

Nearby in Thousand Oaks, the Thousand Oaks Civic Arts Plaza features performances ranging from rock to symphonies to comedy.

Business Cost Comparison

Los Angeles Westlake VillageU lity Tax - Electrical Usage 12.5% 0Sales Tax 9.0% 7.25%Business Tax $10,500 0Business License Fees Required Not Required

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AREA MAP 16

DEMOGRAPHICS

DEMOGRAPHIC AND INCOME PROFILE - 3 MILE RADIUS31248 OAK CREST DRIVE, WESTLAKE VILLAGE

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DEMOGRAPHIC AND INCOME PROFILE - 5 MILE RADIUS31248 OAK CREST DRIVE, WESTLAKE VILLAGEDEMOGRAPHIC AND INCOME PROFILE - 5 MILE RADIUS31248 OAK CREST DRIVE, WESTLAKE VILLAGE


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FINANCIAL INFORMATION

CASH FLOW PROJECTIONYear: 1 2 3 4 5 6 7 8 9 10 11

Begins: Jan-2017 Jan-2018 Jan-2019 Jan-2020 Jan-2021 Jan-2022 Jan-2023 Jan-2024 Jan-2025 Jan-2026 Jan-2027Ends: Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027

STATISTICSNet Rentable Area in SF 53,133 - - - - - - - - - -Avg Base Rental Revenue PSF/mo. $2.01 $2.05 $2.11 $2.16 $2.23 $2.29 $2.36 $2.43 $2.50 $2.57 $2.65Total Operating Expenses PSF/yr. $4.83 $5.15 $5.28 $5.30 $5.53 $5.63 $5.81 $5.79 $5.98 $6.26 $7.10Absorption & Turnover Vacancy 34.9% - 3.1% 3.2% - 2.6% - 10.4% 6.6% - -General Vacancy - 5.0% 1.9% 1.8% 5.0% 2.4% 5.0% - - 5.0% 5.0%

Potential Gross RevenueBase Rental Revenue $1,281,870 $1,307,655 $1,345,802 $1,380,106 $1,419,755 $1,462,348 $1,505,161 $1,550,315 $1,592,752 $1,637,808 $1,686,944Absorption & Turnover Vacancy (422,364) - (40,772) (36,401) - (35,274) - (135,729) (90,882) - -Base Rent Abatements (70,394) (72,506) (74,682) (248,415) (79,228) (134,518) (72,502) (271,458) (224,256) - -

Scheduled Base Rental Revenue $789,112 $1,235,149 $1,230,348 $1,095,290 $1,340,527 $1,292,556 $1,432,659 $1,143,128 $1,277,614 $1,637,808 $1,686,944Expense Reimbursement Revenue - 17,338 23,268 17,176 28,834 31,313 37,384 23,282 9,152 22,903 63,468n/a - - - - - - - - - - -

Total Potential Gross Revenue $789,112 $1,252,487 $1,253,616 $1,112,466 $1,369,361 $1,323,869 $1,470,043 $1,166,410 $1,286,766 $1,660,711 $1,750,412General Vacancy - (62,624) (23,947) (21,042) (68,468) (32,683) (73,502) - - (83,036) (87,521)

Effective Gross Revenue $789,112 $1,189,863 $1,229,669 $1,091,424 $1,300,893 $1,291,186 $1,396,541 $1,166,410 $1,286,766 $1,577,675 $1,662,891

Operating ExpensesTaxes @ 1.2% $165,900 $169,218 $172,602 $176,054 $179,575 $183,167 $186,830 $190,567 $194,378 $198,266 $237,374Insurance 10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 13,439Management @ 3% 23,673 35,696 36,890 32,743 39,027 38,736 41,896 34,992 38,603 47,330 49,887Alarm Expense 400 412 425 437 451 464 478 492 507 522 538Repairs / Maintenance 614 633 652 671 691 712 734 756 778 802 826Elevator Maintenance 607 626 644 664 684 704 725 747 769 792 816Plumbing 207 213 220 226 233 240 247 255 262 270 278Parking Lot Cleaning 128 132 136 140 144 148 153 157 162 167 172Landscape Maintenance 3,420 3,523 3,628 3,737 3,849 3,965 4,084 4,206 4,332 4,462 4,596HVAC Repairs / Non Recur. 9,467 9,751 10,043 10,345 10,655 10,975 11,304 11,643 11,992 12,352 12,723Lock & Key Service - - - - - - - - - - -Janitorial Contract Cleaning 6,126 6,310 6,499 6,694 6,895 7,102 7,315 7,534 7,760 7,993 8,233Janitorial Supplies 1,514 1,560 1,606 1,655 1,704 1,755 1,808 1,862 1,918 1,976 2,035Misc. Repairs - Non Recur. 6,678 6,878 7,084 7,297 7,516 7,741 7,974 8,213 8,459 8,713 8,974Electricity Common 23,148 23,842 24,557 25,294 26,053 26,834 27,639 28,469 29,323 30,202 31,108Gas 1,527 1,573 1,620 1,669 1,719 1,771 1,824 1,878 1,935 1,993 2,053Water Domestic FP & WT 862 888 915 942 970 999 1,029 1,060 1,092 1,125 1,158Water Reclaimed 296 304 314 323 333 343 353 364 374 386 397Trash Expense 1,836 1,892 1,948 2,007 2,067 2,129 2,193 2,259 2,326 2,396 2,468

Total Operating Expenses $256,403 $273,751 $280,392 $281,825 $293,821 $299,378 $308,527 $307,753 $317,638 $332,795 $377,075

NET OPERATING INCOME $532,709 $916,112 $949,277 $809,599 $1,007,072 $991,808 $1,088,014 $858,657 $969,128 $1,244,880 $1,285,816

Leasing & Capital CostsTenant Improvements $879,925 - - $306,237 - $137,791 - $530,191 $355,013 - $159,737Leasing Commissions 332,368 - - 87,218 - 39,244 - 222,870 101,110 - 48,849Reserves @ 2% 15,782 23,797 24,593 21,828 26,018 25,824 27,931 23,328 25,735 31,554 33,258

Total Leasing & Capital Costs $1,228,075 $23,797 $24,593 $415,283 $26,018 $202,859 $27,931 $776,389 $481,858 $31,554 $241,844

CASH FLOW BEFORE DEBT SERVICE ($695,366) $892,315 $924,684 $394,316 $981,054 $788,949 $1,060,083 $82,268 $487,270 $1,213,326 $1,043,972

INTERNAL RATE OF RETURN - 10 Year Hold REVERSION CALCULATION - Sale at End of Year 10

IRR Price Per SF Cap Yr 1 Using NOI in Year 11 Total Dollars Per SF

6.94% $13,825,000 $260.20 3.85% Cap Rate @ 6.50% $19,781,785 $372.31Cost of Sale @ 3.00% (593,454) (11.17)

Net Reversion Proceeds $19,188,331 $361.14

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CASH FLOW PROJECTION -WITH DEBT

Year: 1 2 3 4 5 6 7 8 9 10 11Begins: Jan-2017 Jan-2018 Jan-2019 Jan-2020 Jan-2021 Jan-2022 Jan-2023 Jan-2024 Jan-2025 Jan-2026 Jan-2027

Ends: Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027

NET OPERATING INCOME $532,709 $916,112 $949,277 $809,599 $1,007,072 $991,808 $1,088,014 $858,657 $969,128 $1,244,880 $1,285,816Debt Coverage Ratio (NOI / debt service) 0.91 1.57 1.62 1.39 1.72 1.70 1.86 1.47 1.66 2.13 2.20

CASH FLOW BEFORE DEBT SERVICE ($695,366) $892,315 $924,684 $394,316 $981,054 $788,949 $1,060,083 $82,268 $487,270 $1,213,326 $1,043,972Interest Payments - 4.25% (377,929) (368,990) (359,664) (349,934) (339,782) (329,190) (318,140) (306,610) (294,580) (282,030) (268,935)Principal Payments - 25 Year (206,255) (215,193) (224,519) (234,249) (244,401) (254,993) (266,044) (277,573) (289,603) (302,154) (315,248)

CASH FLOW AFTER DEBT SERVICE ($1,279,549) $308,132 $340,501 ($189,867) $396,871 $204,766 $475,900 ($501,915) ($96,913) $629,143 $459,789

Gross Reversion Proceeds @ 6.50% $14,094,031 $14,604,262 $12,455,369 $15,493,415 $15,258,585 $16,738,677 $13,210,108 $14,909,662 $19,152,000 $19,781,785 -Cost of Sale @ 3.00% (422,821) (438,128) (373,661) (464,802) (457,758) (502,160) (396,303) (447,290) (574,560) (593,454) -Remaining Loan Balance (8,779,995) (8,564,802) (8,340,283) (8,106,034) (7,861,633) (7,606,640) (7,340,596) (7,063,023) (6,773,420) (6,471,266) -

NET REVERSION PROCEEDS $4,891,214 $5,601,331 $3,741,425 $6,922,579 $6,939,194 $8,629,877 $5,473,208 $7,399,349 $11,804,020 $12,717,065 -

Cap Rate (NOI divided by purchase price) 3.85% 6.63% 6.87% 5.86% 7.28% 7.17% 7.87% 6.21% 7.01% 9.00% -All Cash Yield (cash on cash before debt service) -5.03% 6.45% 6.69% 2.85% 7.10% 5.71% 7.67% 0.60% 3.52% 8.78% -Leveraged Yield (cash on cash after debt service) -26.44% 6.37% 7.04% -3.92% 8.20% 4.23% 9.84% -10.37% -2.00% 13.00% -

NOTES: In ARGUS, loan fees are included as a debt service cost in year one. However, loan fees are actually a cost at acquisition. In this analysis, loan fees (if any) are included as a cost at acquisition.

PRICE, DEBT and EQUITY Total Dollars Per SF IRR ANALYSIS 3 Year Hold 5 Year Hold 7 Year Hold 10 Year Hold

Purchase Price $13,825,000 $260.20 All Cash -1.50% 4.70% 3.37% 6.94%Loan @ 65.0% (8,986,250) (169.13)Loan Fee @ 0.0% - - Leveraged -11.51% 5.41% 2.18% 9.70%

Required Equity $4,838,750 $91.07

NOI Year 1 NOI Year 2 If applicable, in this table a Calif. Prop. 13 tax adj. upon sale is reflected for only a 10 year hold.

Cap Rate (NOI divided by purchase price) 3.85% 6.63%

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VALUATION TABLE - VARYING IRRS/DISCOUNT RATES - STATIC EXIT CAP RATE

IRR / Total Indicated Cap NPV NPV of % of Total NPV NPV of % of Total NPV

Discount Rate Net Present Value on Year 1 NOI Per SF Cash Flow From Cash Flow Reversion From Reversion

5.00% $16,276,000 3.27% $306.33 $4,496,000 27.6% $11,780,000 72.4%

5.25% $15,933,000 3.34% $299.87 $4,430,000 27.8% $11,503,000 72.2%

5.50% $15,598,000 3.42% $293.57 $4,365,000 28.0% $11,233,000 72.0%

5.75% $15,272,000 3.49% $287.43 $4,301,000 28.2% $10,971,000 71.8%

6.00% $14,953,000 3.56% $281.43 $4,239,000 28.3% $10,715,000 71.7%

6.25% $14,643,000 3.64% $275.59 $4,177,000 28.5% $10,465,000 71.5%

6.50% $14,339,000 3.72% $269.87 $4,117,000 28.7% $10,222,000 71.3%

6.75% $14,043,000 3.79% $264.30 $4,058,000 28.9% $9,985,000 71.1%

7.00% $13,755,000 3.87% $258.88 $4,000,000 29.1% $9,754,000 70.9%

7.25% $13,473,000 3.95% $253.57 $3,943,000 29.3% $9,529,000 70.7%

7.50% $13,197,000 4.04% $248.38 $3,887,000 29.5% $9,310,000 70.5%

7.75% $12,929,000 4.12% $243.33 $3,833,000 29.6% $9,096,000 70.4%

8.00% $12,667,000 4.21% $238.40 $3,779,000 29.8% $8,888,000 70.2%

8.25% $12,411,000 4.29% $233.58 $3,726,000 30.0% $8,685,000 70.0%

8.50% $12,160,000 4.38% $228.86 $3,674,000 30.2% $8,487,000 69.8%

8.75% $11,916,000 4.47% $224.27 $3,623,000 30.4% $8,294,000 69.6%

9.00% $11,678,000 4.56% $219.79 $3,573,000 30.6% $8,105,000 69.4%

9.25% $11,445,000 4.65% $215.40 $3,523,000 30.8% $7,922,000 69.2%

9.50% $11,218,000 4.75% $211.13 $3,475,000 31.0% $7,743,000 69.0%

9.75% $10,996,000 4.84% $206.95 $3,427,000 31.2% $7,568,000 68.8%

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VALUATION TABLE - VARYING IRRS/DISCOUNT RATES - VARYING EXIT CAP RATES

IRR / Exit Cap Exit Cap Exit Cap Exit Cap Exit Cap Exit Cap Exit Cap Exit Cap Exit Cap

Discount Rate 5.50% 5.75% 6.00% 6.25% 6.50% 6.75% 7.00% 7.25% 7.50%

5.00% $18,418,000 $17,812,000 $17,257,000 $16,747,000 $16,276,000 $15,839,000 $15,434,000 $15,057,000 $14,705,000

5.25% $18,024,000 $17,433,000 $16,891,000 $16,393,000 $15,933,000 $15,507,000 $15,111,000 $14,743,000 $14,399,000

5.50% $17,641,000 $17,063,000 $16,534,000 $16,048,000 $15,598,000 $15,182,000 $14,796,000 $14,436,000 $14,100,000

5.75% $17,267,000 $16,703,000 $16,186,000 $15,711,000 $15,272,000 $14,866,000 $14,488,000 $14,137,000 $13,809,000

6.00% $16,901,000 $16,351,000 $15,846,000 $15,382,000 $14,953,000 $14,557,000 $14,188,000 $13,845,000 $13,525,000

6.25% $16,545,000 $16,008,000 $15,515,000 $15,061,000 $14,643,000 $14,255,000 $13,895,000 $13,560,000 $13,247,000

6.50% $16,198,000 $15,673,000 $15,191,000 $14,748,000 $14,339,000 $13,961,000 $13,609,000 $13,282,000 $12,976,000

6.75% $15,859,000 $15,346,000 $14,876,000 $14,443,000 $14,043,000 $13,674,000 $13,330,000 $13,010,000 $12,712,000

7.00% $15,528,000 $15,027,000 $14,567,000 $14,145,000 $13,755,000 $13,393,000 $13,058,000 $12,746,000 $12,454,000

7.25% $15,205,000 $14,716,000 $14,267,000 $13,854,000 $13,473,000 $13,120,000 $12,792,000 $12,487,000 $12,202,000

7.50% $14,890,000 $14,412,000 $13,973,000 $13,570,000 $13,197,000 $12,853,000 $12,532,000 $12,234,000 $11,956,000

7.75% $14,583,000 $14,115,000 $13,687,000 $13,293,000 $12,929,000 $12,592,000 $12,279,000 $11,988,000 $11,716,000

8.00% $14,283,000 $13,826,000 $13,407,000 $13,022,000 $12,667,000 $12,337,000 $12,032,000 $11,747,000 $11,482,000

8.25% $13,990,000 $13,543,000 $13,134,000 $12,758,000 $12,411,000 $12,089,000 $11,790,000 $11,512,000 $11,253,000

8.50% $13,704,000 $13,267,000 $12,868,000 $12,500,000 $12,160,000 $11,846,000 $11,554,000 $11,283,000 $11,029,000

8.75% $13,424,000 $12,998,000 $12,607,000 $12,248,000 $11,916,000 $11,609,000 $11,324,000 $11,058,000 $10,811,000

9.00% $13,152,000 $12,735,000 $12,353,000 $12,002,000 $11,678,000 $11,378,000 $11,099,000 $10,839,000 $10,597,000

9.25% $12,885,000 $12,478,000 $12,105,000 $11,762,000 $11,445,000 $11,152,000 $10,879,000 $10,626,000 $10,389,000

9.50% $12,625,000 $12,228,000 $11,863,000 $11,527,000 $11,218,000 $10,931,000 $10,665,000 $10,417,000 $10,185,000

9.75% $12,372,000 $11,983,000 $11,626,000 $11,298,000 $10,996,000 $10,715,000 $10,455,000 $10,213,000 $9,986,000

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CASH FLOW ASSUMPTIONSSummary InformationProperty Name 31248 Oak Crest DriveAddress (see above)City, State Westlake Village, CA 91361

Cash Flow ANALYSIS Start Date January 1, 2017Cash Flow REPORTING Start Date January 1, 2017Holding Period for Net Present Value 10 YearsNet Rentable Area in SF 53,133

General Projection AssumptionsCost of Living Growth per Annum 3.00%General Expense Growth per Annum 3.00%Real Estate Tax Growth per Annum 2.00%

General Vacancy / Credit Loss (offset by down time) 5.00%Duration of Absorption of Existing Vacant Space 6 MonthsDate of Completion of Absorption of Existing Vacant Space By 7/1/2017

Total Dollars $ PSF

Year One Total Operating Expenses $256,403 $4.83Year One Net Operating Income $532,709 $10.03

Exit Cap Rate (applied to following year NOI) 6.50%Exit Cost of Sale 3.00%

Indicated Discount Rate 6.94%

Valuation Parameters Total Dollars $ PSF

Net Present Value at Indicated IRR / Discount Rate $13,825,000 $260.20Year One Cap Rate at Indicated Net Present Value 3.85%

General Comments See next page for ARGUS market leasing assumptions

Market Leasing Assumptions Spec Spec1st Floor 2nd Floor

Market Rent PSF/mo. - FY1: 1/2017 - 12/2017 $2.00 $2.00Market Rent PSF/mo. - FY2: 1/2018 - 12/2018 $2.06 $2.06Market Rent PSF/mo. - FY3: 1/2019 - 12/2019 $2.12 $2.12Market Rent PSF/mo. - FY4: 1/2020 - 12/2020 $2.19 $2.19Market Rent PSF/mo. - FY5: 1/2021 - 12/2021 $2.25 $2.25Market Rent PSF/mo. - FY6: 1/2022 - 12/2022 $2.32 $2.32Market Rent PSF/mo. - FY7: 1/2023 - 12/2023 $2.39 $2.39Market Rent PSF/mo. - FY8: 1/2024 - 12/2024 $2.46 $2.46Market Rent PSF/mo. - FY9: 1/2025 - 12/2025 $2.53 $2.53Market Rent PSF/mo. - FY10: 1/2026 - 12/2026 $2.61 $2.61Etc. (pattern continues annually)

Market Rent Growth - Begins FY1: 1/2017 - 12/2017 -- n/a -- -- n/a --

Market Rent Growth - Begins FY2: 1/2018 - 12/2018 3.00% 3.00%Market Rent Growth - Begins FY3: 1/2019 - 12/2019 3.00% 3.00%Market Rent Growth - Begins FY4: 1/2020 - 12/2020 3.00% 3.00%Market Rent Growth - Begins FY5: 1/2021 - 12/2021 3.00% 3.00%Market Rent Growth - Begins FY6: 1/2022 - 12/2022 3.00% 3.00%Market Rent Growth - Begins FY7: 1/2023 - 12/2023 3.00% 3.00%Market Rent Growth - Begins FY8: 1/2024 - 12/2024 3.00% 3.00%Market Rent Growth - Begins FY9: 1/2025 - 12/2025 3.00% 3.00%Market Rent Growth - Begins FY10: 1/2026 - 12/2026 3.00% 3.00%Etc. (pattern continues annually)

Type of Lease FSG (base year) FSG (base year)

Speculative Lease Term in Years 5 Years 7 YearsEscalations Within Speculative Lease Term Annual 3% Annual 3%

Probability of Tenant Retention 75.0% 75.0%

TI Allowance PSF - New Tenant $25.00 $25.00TI Allowance PSF - Renewing Tenant $12.50 $12.50TI Allowance PSF - Weighted Average $15.63 $15.63TI Allowance PSF - Initial Lease of Vacant Space (if any) $25.00 $25.00

Lease Commission - New Tenant 6.00% 6.00%Lease Commission - Renewing Tenant 3.00% 3.00%Lease Commission - Weighted Average 3.75% 3.75%Lease Commission - Initial Lease of Vacant Space (if any) 6.00% 6.00%

Months Down Time - New Tenant 6 mos 6 mosMonths Down Time - Weighted Average 2 mos 2 mos

Months Free Rent - New Tenant 5 mos 7 mosMonths Free Rent - Renewing Tenant 2.5 mos 3.5 mosMonths Free Rent - Weighted Average 3.13 mos 4.38 mosMonths Free Rent - Initial Lease of Vacant Space (if any) 5 mos 7 mos

Leasing Assumption Comments n/a n/a

29

DETAILED RENT ROLL

Tenant Name CPI & Current TI's LC'sType & Suite Number Sq. Ft. Rate/Amt./Yr. Porters' Wage Mos. Pct. Description of Operating Rate Rate Assumption About Future

No. Lease Dates & Term Bldg. % Rate/Amt./Mo. Adj. Date Pct. $/Month PSF/mo. $/Year PSF/yr. Miscellaneous Free Free Expense Reimbursements Amount Amount Terms For This Tenant___ ______________________ _______ ___________ ________ _____ _________ _______ __________ ________ ______________ _______ _____ _____________________ ___________ _________ _____________________

1 Field Care / Well Care $25.20 May-2017 3.0% $11,682 $2.16 $140,184 $25.96 - - - Gross: Pays the - - Market Office, Suite: 120 5,400 $136,080 May-2018 3.0% $12,029 $2.23 $144,342 $26.73 increases over a See assumption:May-2016 to Jan-2020 10.16% $2.10 May-2019 3.0% $12,393 $2.30 $148,716 $27.54 base year ending $2.00 FSG 5yr45 Months $11,340 Dec-2017: $4.83.

2 Interlink $22.20 Feb-2017 3.0% $5,580 $1.91 $66,963 $22.87 - - - Gross: Pays the - - Market Office, Suite: 110 2,928 $65,002 Feb-2018 3.0% $5,746 $1.96 $68,954 $23.55 increases over a See assumption:Feb-2015 to Jan-2020 5.51% $1.85 Feb-2019 3.0% $5,919 $2.02 $71,033 $24.26 base year ending $2.00 FSG 5yr60 Months $5,417 Dec-2017: $4.83.

3 Nevers, et al. $24.72 Nov-2017 3.0% $17,718 $2.12 $212,616 $25.46 - - - Gross: Pays the - - Market Office, Suite: 100 8,351 $206,437 Nov-2018 3.0% $18,254 $2.19 $219,047 $26.23 increases over a See assumption: Nov-2015 to Oct-2019 15.72% $2.06 base year ending $2.00 FSG 5yr48 Months $17,203 Dec-2017: $4.83.

4 Nevers, et al. $18.60 Jan-2017 3.0% $2,007 $1.60 $24,084 $19.16 - - - Gross: Pays the - - Market Office, Suite: 100B 1,257 $23,380 Jan-2018 3.0% $2,067 $1.64 $24,801 $19.73 increases over a See assumption: Jan-2016 to Oct-2019 2.37% $1.55 Jan-2019 3.0% $2,129 $1.69 $25,542 $20.32 base year ending $2.00 FSG 5yr46 Months $1,948 Dec-2017: $4.83.

5 ** VACANT $24.00 Jul-2018 3.0% $15,670 $2.06 $188,045 $24.72 - 1 100% Gross: Pays the $25.00 $7.01 Market Office, Suite: 1ST 7,607 $182,568 Jul-2019 3.0% $16,140 $2.12 $193,674 $25.46 13 100% increases over a 6.00% See assumption: Jul-2017 to Jun-2022 14.32% $2.00 Jul-2020 3.0% $16,628 $2.19 $199,532 $26.23 25 100% base year ending $190,175 $53,310 $2.00 FSG 5yr60 Months $15,214 Jul-2021 3.0% $17,122 $2.25 $205,465 $27.01 37 100% Dec-2017: $4.83.

49 100%

6 ** VACANT $24.00 Jul-2018 3.0% $54,069 $2.06 $648,826 $24.72 - 1 100% Gross: Pays the $25.00 $10.11 Market Office, Suite: 2ND 26,247 $629,928 Jul-2019 3.0% $55,687 $2.12 $668,249 $25.46 13 100% increases over a 6.00% See assumption: Jul-2017 to Jun-2024 49.40% $2.00 Jul-2020 3.0% $57,372 $2.19 $688,459 $26.23 25 100% base year ending $656,175 $265,474 $2.00 FSG 7yr84 Months $52,494 Jul-2021 3.0% $59,078 $2.25 $708,931 $27.01 37 100% Dec-2017: $4.83.

Jul-2022 3.0% $60,849 $2.32 $730,192 $27.82 49 100% Jul-2023 3.0% $62,687 $2.39 $752,239 $28.66 61 100%

73 100%

7 ** VACANT (lower lobby) $24.00 Jul-2018 3.0% $2,767 $2.06 $33,199 $24.72 - 1 100% Gross: Pays the $25.00 $10.11 Market Office, Suite: LOWLOB 1,343 $32,232 Jul-2019 3.0% $2,849 $2.12 $34,193 $25.46 13 100% increases over a 6.00% See assumption: Jul-2017 to Jun-2024 2.53% $2.00 Jul-2020 3.0% $2,936 $2.19 $35,227 $26.23 25 100% base year ending $33,575 $13,584 $2.00 FSG 7yr84 Months $2,686 Jul-2021 3.0% $3,023 $2.25 $36,274 $27.01 37 100% Dec-2017: $4.83.

Jul-2022 3.0% $3,114 $2.32 $37,362 $27.82 49 100% Jul-2023 3.0% $3,208 $2.39 $38,490 $28.66 61 100%

73 100%

30

BRIEF RENT ROLL

No. Type, Suite Tenant Size Pct. Start to Expire Rent/mo. PSF/mo. Rent/yr. PSF/yr. CAM Reimb. Leasing Assump. MR $ PSF % Incr

1 Office, Suite: 120 Field Care / Well Care 5,400 10.2% May-2016 to Jan-2020 $11,340.00 $2.10 $136,080 $25.20 Gross: Pays the increases over a baseyear ending Dec-2017: $4.83. $2.00 FSG 5yr $2.00 -4.8%

2 Office, Suite: 110 Interlink 2,928 5.5% Feb-2015 to Jan-2020 $5,416.83 $1.85 $65,002 $22.20 Gross: Pays the increases over a baseyear ending Dec-2017: $4.83. $2.00 FSG 5yr $2.00 8.1%

3 Office, Suite: 100 Nevers, et al. 8,351 15.7% Nov-2015 to Oct-2019 $17,203.08 $2.06 $206,437 $24.72 Gross: Pays the increases over a baseyear ending Dec-2017: $4.83. $2.00 FSG 5yr $2.00 -2.9%

4 Office, Suite: 100B Nevers, et al. 1,257 2.4% Jan-2016 to Oct-2019 $1,948.33 $1.55 $23,380 $18.60 Gross: Pays the increases over a baseyear ending Dec-2017: $4.83. $2.00 FSG 5yr $2.00 29.0%

5 Office, Suite: 1ST ** VACANT 7,607 14.3% Jul-2017 to Jun-2022 $15,214.00 $2.00 $182,568 $24.00 Gross: Pays the increases over a baseyear ending Dec-2017: $4.83. $2.00 FSG 5yr $2.00 -

6 Office, Suite: 2ND ** VACANT 26,247 49.4% Jul-2017 to Jun-2024 $52,494.00 $2.00 $629,928 $24.00 Gross: Pays the increases over a baseyear ending Dec-2017: $4.83. $2.00 FSG 7yr $2.00 -

7 Office, Suite: LOWLOB ** VACANT (lower lobby) 1,343 2.5% Jul-2017 to Jun-2024 $2,686.00 $2.00 $32,232 $24.00 Gross: Pays the increases over a baseyear ending Dec-2017: $4.83. $2.00 FSG 7yr $2.00 -

TOTAL 53,133 100.0% $106,302 $2.00 $1,275,627 $24.01 $2.00 -0.0%

31

SUMMARY OF TENANTS STATISTICS

OCCUPANCY ANALYSIS - : - - Current Contract Rents / Vacant @ Market Rents - - : - - Estimated Market Rents - - : % CurrentSq. Ft. % of Total : Rent/mo. PSF/mo. Rent/yr. PSF/yr. % of Total : Rent/mo. PSF/mo. Rent/yr. PSF/yr. % of Total : vs. Market

: : :** OCCUPIED SUITES 17,936 33.8% : $35,908 $2.00 $430,899 $24.02 33.8% : $35,872 $2.00 $430,464 $24.00 33.8% : 0.1%** VACANT SUITES 35,197 66.2% : $70,394 $2.00 $844,728 $24.00 66.2% : $70,394 $2.00 $844,728 $24.00 66.2% : -

: : :** TOTAL 53,133 100.0% : $106,302 $2.00 $1,275,627 $24.01 100.0% : $106,266 $2.00 $1,275,192 $24.00 100.0% : 0.0%

: : :: : :: : :: : :

UNIT TYPE ANALYSIS - : - - Current Contract Rents / Vacant @ Market Rents - - : - - Estimated Market Rents - - : % CurrentSq. Ft. % of Total : Rent/mo. PSF/mo. Rent/yr. PSF/yr. % of Total : Rent/mo. PSF/mo. Rent/yr. PSF/yr. % of Total : vs. Market

: : :$2.00 FSG 5yr 25,543 48.1% : $51,122 $2.00 $613,467 $24.02 48.1% : $51,086 $2.00 $613,032 $24.00 48.1% : 0.1%$2.00 FSG 7yr 27,590 51.9% : $55,180 $2.00 $662,160 $24.00 51.9% : $55,180 $2.00 $662,160 $24.00 51.9% : -

: : :** TOTAL 53,133 100.0% : $106,302 $2.00 $1,275,627 $24.01 100.0% : $106,266 $2.00 $1,275,192 $24.00 100.0% : 0.0%

: : :: : :: : :: : :

EXPIRATION ANALYSIS - : - - Current Contract Rents / Vacant @ Market Rents - - : - - Estimated Market Rents - - : % CurrentSq. Ft. % of Total : Rent/mo. PSF/mo. Rent/yr. PSF/yr. % of Total : Rent/mo. PSF/mo. Rent/yr. PSF/yr. % of Total : vs. Market

: : :CY 2017 - - : - - - - - : - - - - - : -CY 2018 - - : - - - - - : - - - - - : -CY 2019 9,608 18.1% : $19,151 $1.99 $229,817 $23.92 18.0% : $19,216 $2.00 $230,592 $24.00 18.1% : -0.3%CY 2020 8,328 15.7% : $16,757 $2.01 $201,082 $24.15 15.8% : $16,656 $2.00 $199,872 $24.00 15.7% : 0.6%CY 2021 - - : - - - - - : - - - - - : -CY 2022 7,607 14.3% : $15,214 $2.00 $182,568 $24.00 14.3% : $15,214 $2.00 $182,568 $24.00 14.3% : -CY 2023 - - : - - - - - : - - - - - : -CY 2024 27,590 51.9% : $55,180 $2.00 $662,160 $24.00 51.9% : $55,180 $2.00 $662,160 $24.00 51.9% : -CY 2025 - - : - - - - - : - - - - - : -CY 2026 - - : - - - - - : - - - - - : -CY 2027 - - : - - - - - : - - - - - : -CY 2028 - - : - - - - - : - - - - - : -CY 2029 - - : - - - - - : - - - - - : -CY 2030 - - : - - - - - : - - - - - : -CY 2031 - - : - - - - - : - - - - - : -CY 2032 - - : - - - - - : - - - - - : -

: : :** TOTAL 53,133 100.0% : $106,302 $2.00 $1,275,627 $24.01 100.0% : $106,266 $2.00 $1,275,192 $24.00 100.0% : 0.0%

32

SALES COMPARABLES

ADDRESS CITY PROPERTY INFO SALE INFO

1 28632 Roadside Drive Agoura Hills 94,364 SF Class B Offi ce Sold: $20,050,000 ($212.48/SF)

2 29525 Canwood Street Agoura Hills 51,775 SF Class B Offi ce/Medical Sold: $13,800,000 ($266.54/SF)

3 4035-4055 Thousand Oaks Blvd Westlake Village 25,000 SF Class B Ofi ice Sold: $7,050,000 ($282.00/SF)

4 4580 E. Thousand Oaks Blvd Westlake Village 37,103 SF Class B Offi ce Sold: $9,000,000 SF ($242.57/SF)

5 31051 Agoura Road Westlake Village 64,520 SF Class A Offi ce Sold: $18,600,000 SF ($288.28/SF)

SALE COMPARABLES

34

ADAM GEIGERAssociateLic #[email protected]

JOE JUSKOPrincipalLic #[email protected]

EXCLUSIVELY OFFERED BY:

Licensed as Real Estate Broker by the CA Bur of Real Estate. ©2017 Voit Real Estate Services, Inc. All Rights Reserved. License # 01991785.

STAN KWAKVice PresidentLic #[email protected]

FRANK GERACIExecu ve Vice PresidentLic #[email protected]

JUAN GUTIERREZSenior Vice PresidentLic #01777990909.545.8008jgu [email protected]

of ce building for sale owner-user opportunity offering ... · westlake village, a city of just 5.4...

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