16889-16929 BEACH BLVD. - LoopNet...16889-16929 Beach Blvd Huntington Beach, CA PRICE $9,775,000 PRICE / SF $459 GLA SIZE 21,316 SF INVESTMENT SUMMARY LOT SIZE 1.74 acres PRICE / SF

O F F E R I N G M E M O R A N D U M

C A P I TA L M A R K E T S I N V E S T M E N T

16889-16929 BEACH BLVD. HUNTINGTON BEACH, CA

AFFILIATED BUSINESS DISCLOSURE

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENT

Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential

Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMER

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents,

including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

© 2017 CBRE, Inc. All rights reserved.

1. INVESTMENT SUMMARY ..................................................... 4

2. INVESTMENT OVERVIEW & HIGHLIGHTS ........................ 13

3. AERIAL & PROPERT Y PHOTOS .......................................... 19

4. PROPERT Y DESCRIPTION .................................................. 25

5. LOCATION OVERVIEW ....................................................... 27

6. DEMOGRAPHICS ................................................................ 34

NATHAN HOLTHOUSER

Senior Vice President Lic. 01838616 +1 949 229 2273 [email protected]

TRAM CHURCH

Senior Associate Lic. 01478857 +1 949 809 3663 [email protected]

RYAN SHARPE

Associate Lic. 01940376 +1 949 809 3658 [email protected]

REBECCA CANALEZ

Client Services Team Lead Lic. 01384744 +1 949 809 3661 [email protected]

ASHLEY RUSSELL

Marketing Coordinator +1 949 809 3625 [email protected]

JAMES LEHIGH

Associate Lic. 01850077 +1 949 809 3662 [email protected]

SHAUN MOOTHART

Debt & Structured Finance Lic. 01773201 +1 949 509 2111 [email protected]

CBRE

3501 Jamboree Road Suite 100 Newport Beach, CA 92660

F O R M O R E I N F O R MAT I O N, P L E A S E CO N TAC T

TABLE OF CONTENTS

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INVESTMENT SUMMARY

ADDRESS16889-16929 Beach Blvd

Huntington Beach, CA

PRICE$9,775,000

PRICE/SF$459

GLA SIZE21,316 SF

I N V E S T M E N T S U M MA RY

LOT SIZE1.74 acres

PRICE/SF LAND

$128.97

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N O I ( YE A R 1)

NET OPERATING INCOME

NOI (Year 1)May-19 to Apr-20 $ PSF

Size of Improvements 21,316 SF

REVENUESScheduled Base Rent

Gross Potential Rent $551,693 $25.88 Absorption & Turnover Vacancy (11,124) (0.52)Base Rent Abatements 0 0.00

Total Scheduled Base Rent 540,569 25.36 Expense Reimbursements 154,995 7.27

TOTAL GROSS REVENUE 69,5564 32.63 General Vacancy Loss (10,077) (0.47)

EFFECTIVE GROSS REVENUE 685,487 32.16

OPERATING EXPENSESCAM (37,682) (1.77)Management Fee (20,565) (0.96)Insurance (11,963) (0.56)Real Estate Taxes (116,589) (5.47)

TOTAL OPERATING EXPENSES (186,799) (8.76)NET OPERATING INCOME $498,688 $23.40

Capitalization Rate 5.10%PURCHASE PRICE AS OF JANUARY 1, 2019 $9,775,000 $458.58

In-Place Occupancy (At Start of Analysis with No Vacant Lease-Up)

100.00%

Average Occupancy (Includes Vacant Lease-Up and Rollover) 98.12%

REIMBURSABLE EXPENSES

NOI (Year 1)May-19 to Apr-20

Reimbursable Expenses CAM Dayporter-Steam-Sweep 8,258 Electricity 2,934 Gardener 3,689 Repair-Maint. 11,235 Roof & Paving 1,604 Trash 6,267 Water-Sewer 3,695 Management Fee 20,565 Insurance 11,963 Real Estate Taxes 116,589

Total Reimbursable Expenses 186,799

[1] CAM line items are modeled per the 2018 CAM Budget, broken out by a pro rata share of the total CAM expense, calculated based on the 2017 Actuals.[2] Management Fee is based on 3% of EGR.[3] Real Estate Taxes have been reassessed at the estimated purchase price based on a millage rate of 1.101010% plus special assessments of $9,956.

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E X E C U T I V E S U M MA RY

PROPERTY DESCRIPTIONProperty Type Retail Size of Improvements 21,316 SF

Property Address 16883-16929 Beach Blvd. Huntington Beach, CA Currently Vaca nt as of 7/1/18 0 SF

Current Occupancy as of 7/1/18 100.00%

Projected Occupancy as of 1/1/19 100.00%

ACQUISITION AND RESIDUAL SUMMARYPurchase Price as of January 1, 2019 $459 PSF $9,775,000

Year 1 Year 2 Year 3Capitalization Rate 5.10% 5.28% 5.52%Unleveraged Cash Return 5.07% 4.33% 4.49%Leveraged Cash Return 5.32% 3.49% 1.71%Return on Cost 5.10% 5.23% 5.41%

In-Place Capitalization Rate 4.71% 100% OccupancyMark-to-Market Cap Rate 5.78% 97% Occupancy

3-Year 5-Year 7-YearAverage Capitalization Rate 5.30% 5.73% 5.93%Average Cash Return 4.63% 5.31% 5.37%Average Leveraged Cash Return 3.50% 4.60% 4.50%

Net Residual Value as of December 31, 2028 $611 PSF $13,028,000

Residual Capitalization Rate 5.50%Residual Cost of Sale 3.00%

ALL CASH IRR 7.91%Residual Capitalization Rate 1.91x

LEVERAGE SUMMARY [1]Market Loan

Initial Loan Funding (as of Jan-19) $5,865,000 Loan-To-Value Ratio (Initial Funding) 60.00%Funding Date May-19Maturity Date Apr-29Remaining Loan Term During Analysis 10.0 YearsAmortization Period 30 YearsInitial Interest Only Period (If Any) 24 MonthsInterest Rate 4.85%Origination Fee on Initial Loan Funding 1.00%

Exit Fee on Balance at Maturity 0.00%Loan Constant 6.33%Initial Debt Yield 8.50%Debt Service Coverage Ratio (NOI) 1.34xDebt Service Coverage Ratio (CF) 1.33xPurchase Price as of January 1, 2019 $9,775,000 Total Initial Loan Principal (5,865,000)Total Initial Loan Fees 58,650

Holdbacks and Escrows 0 Initial Equity $3,968,650

LEVERAGED IRR 11.03%LEVERAGED EQUITY MULTIPLE 2.55x

Notes: [1] Leveraged analysis is based on financing that a particular investor may or may not be able to obtain.

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A S S U M P T I O N S

GLOBAL

Analysis PeriodCommencement Date May 1, 2019End Date April 30, 2029Term 10 Years

Area MeasuresBuilding Square Feet (NRSF) 21,316 SF

Growth RatesConsumer Price Index (CPI) 3.00%

Other Income Growth Rate 3.00%Operating Expenses 3.00%Real Estate Taxes 2.00%Market Rent Growth

CY 2020- 3.00%CY 2021- 3.00%CY 2022- 3.00%CY 2023- 3.00%CY 2024- 3.00%CY 2025- 3.00%CY 2026- 3.00%CY 2027- 3.00%CY 2028- 3.00%

CY 2029+- 3.00%

General Vacancy Loss 3.00% [1]

Capital Reserves (CY 2019 Value)

$0.10 PSF

VACANT SPACE LEASING

Occupancy and Absorption

Projected Vacant at 1/1/19 0 SFCurrently Vacant as of 7/1/18 0 SFPercentage Vacant at 7/1/18 0.00%

EXPENSES

Operating Expense Source 2018 Budget

Management Fee (% of EGR) 3.00%

Real Estate Taxes Reassessed YesMillage Rate 1.101010%

SECOND GENERATION LEASINGRestaurant Shops

Retention Ratio 75% 75%

Financial Terms2019 Monthly Market Rent See Rent Roll See Rent Roll

Rent Adjustment 3.00% Annually 3.00% AnnuallyLease Term 5 Years 5 YearsExpense Reimbursement Type NNN+10%Ad NNN+10%Ad

Tenanting CostsRent Abatements

New 3.0 Month(s) 3.0 Month(s)Renewal 0.0 Month(s) 0.0 Month(s)Weighted Average 0.75 Month(s) 0.75 Month(s)

Tenant Improvements ($ NRSF)

New $20.00 PSF $15.00 PSFRenewal $4.00 PSF $3.00 PSFWeighted Average $8.00 PSF $6.00 PSF

Leasing CommissionsNew 6.00% 6.00%Renewal 3.00% 3.00%Weighted Average 3.75% 3.75%

DowntimeNew 6 Month(s) 6 Month(s)Weighted Average 2 Month(s) 2 Month(s)

Notes:

All market rates are stated on calendar-year basis.

[1] General Vacancy Loss factor includes losses attributable to projected lease-up, rollover downtime, and fixturing downtime. All tenants are subject to this loss factor.

[2] Real Estate Taxes have been reassessed at the estimated purchase price based on a millage rate of 1.101010% plus special assessments of $9,956.

[3] Future tenants are assumed to reimburse their pro-rata share of all expenses, including management fee, plus a 10% administrative fee on all common area expenses including management fee.

[4] Free rent includes base rent, plus reimbursements.

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C A S H F LO W P R O J E C T I O N S

Calendar Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Physical Occupancy 98.12% 95.78% 93.43% 100.00% 100.00% 97.27% 92.63% 93.43% 100.00% 100.00% 97.27%Overall Economic Occupancy [1] 97.00% 95.10% 93.52% 97.00% 97.00% 95.90% 92.79% 93.58% 96.74% 97.00% 95.92%Weighted Average Market Rent $2.32 $2.39 $2.47 $2.54 $2.62 $2.70 $2.78 $2.86 $2.94 $3.03 $3.12 Weighted Average In Place Rent [2] $2.15 $2.26 $2.36 $2.49 $2.56 $2.57 $2.67 $2.76 $2.88 $2.98 $2.99

Total Operating Expenses PSF Per Year $8.76 $8.96 $9.18 $9.47 $9.69 $9.89 $10.06 $10.31 $10.61 $10.87 $11.84

[3]CY 2020

REVENUES $/SF/YRScheduled Base Rent

Gross Potential Rent $25.88 $551,693 $590,826 $615,376 $636,370 $655,458 $675,124 $696,563 $719,941 $740,248 $762,453 $785,328 Absorption & Turnover Vacancy (0.52) (11,124) (23,453) (37,092) 0 0 (26,343) (49,147) (42,999) 0 0 (30,539)

Base Rent Abatements 0.00 0 (12,998) (13,909) 0 0 (9,879) (15,596) (16,465) (2,565) 0 (11,452)

Total Scheduled Base Rent 25.36 540,569 554,375 564,375 636,370 655,458 638,902 631,820 660,477 737,683 762,453 743,337

Expense Reimbursements 7.27 154,995 152,742 171,303 204,396 208,921 209,116 201,021 206,025 233,091 242,881 247,880

TOTAL GROSS REVENUE 32.63 695,564 707,117 735,678 840,766 864,379 848,018 832,841 866,502 970,774 1,005,334 991,217 General Vacancy Loss (0.47) (10,077) 0 0 (25,223) (25,931) 0 0 0 (29,123) (30,160) (114)

EFFECTIVE GROSS REVENUE 32.16 685,487 707,117 735,678 815,543 838,448 848,018 832,841 866,502 941,651 975,174 991,103

OPERATING EXPENSESCAM (1.77) (37,682) (38,813) (39,977) (41,176) (42,412) (43,684) (44,994) (46,344) (47,735) (49,167) (50,642)Management Fee (0.96) (20,565) (21,214) (22,070) (24,466) (25,153) (25,441) (24,985) (25,995) (28,250) (29,255) (29,733)

Insurance (0.56) (11,963) (12,322) (12,692) (13,073) (13,465) (13,869) (14,285) (14,714) (15,155) (15,610) (16,078)Real Estate Taxes (5.47) (116,589) (118,748) (120,950) (123,196) (125,487) (127,823) (130,207) (132,638) (135,118) (137,647) (155,974)

TOTAL OPERATING EXPENSES (8.76) (186,799) (191,097) (195,689) (201,911) (206,517) (210,817) (214,471) (219,691) (226,258) (231,679) (252,427)

NET OPERATING INCOME 23.40 498,688 516,020 539,989 613,632 631,931 637,201 618,370 646,811 715,393 743,495 738,676

CAPITAL COSTSTenant Improvements 0.00 0 (48,760) (53,698) 0 0 (32,423) (55,455) (66,413) (9,121) 0 (37,587)

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[1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatements.

[2] This figure does not include any amount related to expense reimbursements. Only Scheduled Base Rent and Fixed/CPI Increases are included in this calculation, which is based on the weighted-average physical occupancy during each fiscal year.

[3] Based on 21,316 square feet.

[4] Net Residual Value is calculated by dividing Year 11 NOI by the Residual Cap Rate of 5.50% and applying a 3.00% Cost of Sale.

[5] Market Debt based on 60% Loan-to-Value, 4.85% Interest Rate, with 24 Months of Interest Only then 30-Year Amortization, and 1.00% Loan Fee.

Calendar Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Leasing Commissions 0.00 0 (40,917) (43,786) 0 0 (31,098) (49,099) (51,832) (8,075) 0 (36,051)Capital Reserves (0.15) (3,229) (3,326) (3,426) (3,529) (3,635) (3,744) (3,856) (3,972) (4,091) (4,214) (4,340)

TOTAL CAPITAL COSTS (0.15) (3,229) (93,003) (100,910) (3,529) (3,635) (67,265) (108,410) (122,217) (21,287) (4,214) (77,978)

OPERATING CASH FLOW $23.24 $495,459 $423,017 $439,079 $610,103 $628,296 $569,936 $509,960 $524,594 $694,106 $739,281 $660,698

ACQUISITION & RESIDUAL SALEAcquisition Cost ($9,775,000) 0 0 0 0 0 0 0 0 0 0 All CashNet Residual Value [4] 0 0 0 0 0 0 0 0 0 0 13,027,559 IRR

CASH FLOW BEFORE DEBT ($9,775,000) $495,459 $423,017 $439,079 $610,103 $628,296 $569,936 $509,960 $524,594 $694,106 $13,766,840 7.91%

MARKET LOAN [5]Loan Funding / Payoff 5,865,000 0 0 0 0 0 0 0 0 0 (5,017,360)Loan Fees (58,650) 0 0 0 0 0 0 0 0 0 0 LeveragedAnnual Debt Service 0 (284,453) (284,453) (371,390) (371,390) (371,390) (371,390) (371,390) (371,390) (371,390) (371,390) IRR

CASH FLOW AFTER DEBT ($3,968,650) $211,007 $138,565 $67,689 $238,713 $256,906 $198,546 $138,570 $153,204 $322,716 $8,378,090 11.03%

NOI Return 5.10% 5.28% 5.52% 6.28% 6.46% 6.52% 6.33% 6.62% 7.32% 7.61%

UNLEVERAGED Cash Return 5.07% 4.33% 4.49% 6.24% 6.43% 5.83% 5.22% 5.37% 7.10% 7.56%

LEVERAGED Cash Return 5.32% 3.49% 1.71% 6.01% 6.47% 5.00% 3.49% 3.86% 8.13% 9.27%

Debt Service Coverage Ratio (NOI) 1.75x 1.81x 1.45x 1.65x 1.70x 1.72x 1.67x 1.74x 1.93x 2.00x

Debt Service Coverage Ratio (CF) 1.74x 1.49x 1.18x 1.64x 1.69x 1.53x 1.37x 1.41x 1.87x 1.99x

Return on Cost 5.10% 5.23% 5.41% 6.15% 6.33% 6.34% 6.09% 6.29% 6.95% 7.22%Cumulative Average Return on Cost - 5.16% 5.25% 5.47% 5.65% 5.76% 5.81% 5.87% 5.99% 6.11%

Rolling - All Cash IRR N/M 3.44% 7.95% 8.10% 7.80% 6.95% 7.23% 8.04% 8.17% 7.91%Rolling - Leveraged IRR N/M 0.51% 11.71% 12.01% 11.29% 9.41% 9.96% 11.48% 11.61% 11.03%

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R E N T R O L L

Lease Term Rental RatesRecovery

Type

Rent Abatements Market

Assumption /Market RentSuite Tenant Name Square

Feet

% of Prop-erty

Begin End Begin Month-ly PSF Annually PSF Date

% Abat-

edTI’s LC’s

16883 Lotus Restaurant 3,496 16.40% Mar-2014 Jun-2019 Current $5,638 $1.61 $67,656 $19.35 NNN(No Mgt)+10%Ad

- - - - Option $3.25 NNN (Restaurant)

Tenant reimbursements have been estimated.

16883 Lotus Restaurant 3,496 16.40% Jul-2019 Jun-2024 FUTUREMar-2020Mar-2021Mar-2022Mar-2023

$11,362$11,703$12,055$12,417$12,787

$3.25$3.35$3.45$3.55$3.66

$136,344 $140,434 $144,664 $149,000 $153,439

$39.00$40.17$41.38$42.62$43.89

NNN(No Mgt)+10%Ad

- - - - Market $3.25 NNN (Restaurant)

Tenant reimbursements have been estimated.

16889 Gracie Barra 2,400 11.26% Mar-2015 Feb-2020 Current $4,997 $2.08 $59,964 $24.99 NNN+10%Ad (Gracie)

- - - - Market $2.25 NNN

(Shops)Tenant has two (2) - five (5) year options at $5,147.18 and $5,966.99 /mo with 3% annual increases, respectively.

16891 Swirls 1,200 5.63% Sep-2016 Aug-2020 CurrentSep-2019

$2,336$2,430

$1.95$2.03

$28,035 $29,160

$23.36$24.30

NNN+10%Ad (Swirls)

- - - - Market $2.25 NNN

(Shops)

16893 Mystique Salon 1,200 5.63% Dec-2015 Nov-2020 CurrentDec-2019

$2,044$2,106

$1.70$1.76

$24,534 $25,272

$20.44$21.06

NNN+10%Ad (Mystique)

– – – – Market $2.25 NNN

(Shops)Tenant has two (2) - five (5) year options at $2,168.99 /mo and $2,514.46 /mo each with 3% annual increases, respectively.

16895 TK Tailoring 1,200 5.63% Jan-2009 AS-

SUMED

Dec-2021 AS-

SUMED

CurrentJan-2020Jan-2021

$1,783$2,033$2,283

$1.49$1.69$1.90

$21,396 $24,396 $27,396

$17.83$20.33$22.83

Gross - - - - Market $2.25 NNN

(Shops)Lease expires 12/18. Assumes tenant exercises their one (1) - three (3) year option at $2,033 /mo with 3% annual increases thereafter. Assumes seller to guarantee any outstanding leasing costs.

16897 The Girl Cave 1,200 5.63% Aug-2012 Jul-2020 Current

Aug-2019

$2,401

$2,473

$2.00

$2.06

$28,812

$29,676

$24.01

$24.73

NNN+10%Ad (Girl Cave)

Market $2.25 NNN

(Shops)16899 Vape Shop 1,200 5.63% Apr-2018 Apr-2021 Current

Apr-2020Apr-2021

$2,280$2,348$2,419

$1.90$1.96$2.02

$27,360 $28,176 $29,028

$22.80$23.48$24.19

NNN+10%Ad (Vape)

- - - - Market $2.25 NNN

(Shops)Tenant has one (1) - five (5) year option at $2,491.42 /mo with 3% annual increases.

16901 Mega Maids 1,800 8.44% Jan-1983 Dec-2020 CurrentJan-2020

$3,737$3,849

$2.08$2.14

$44,846 $46,188

$24.91$25.66

Gross - - - - Market $1.75 NNN

(Shops)Tenant has one (1) - five (5) year option at $3,964.72 with 3% annual increases.

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Lease Term Rental RatesRecovery

Type

Rent Abatements Market

Assumption /Market RentSuite Tenant Name Square

Feet

% of Prop-erty

Begin End Begin Monthly PSF Annually PSF Date%

Abat-ed

TI’s LC’s

16903 Noleen Dental 1,620 7.60% Jan-2016 Dec-2025 CurrentJan-2020Jan-2021Jan-2022Jan-2023Jan-2024Jan-2025

$3,322$3,421$3,525$3,630$3,738$3,852$3,966

$2.05$2.11$2.18$2.24$2.31$2.38$2.45

$39,863 $41,051 $42,298 $43,562 $44,858 $46,219 $47,596

$24.61$25.34$26.11$26.89$27.69$28.53$29.38

NNN+10%Ad (Dental)

- - - - Market $2.25 NNN

(Shops)

Tenant has two (2) - five (5) year options at $4,085.51 /mo and $4,736.22 /mo each with 3% annual increases, respectively.

16929 Kilo Strength 6,000 28.15% Aug-2016 Jul-2021 CurrentAug-2019Aug-2020

$12,000$12,360$12,730

$2.00$2.06$2.12

$144,000 $148,320 $152,760

$24.00$24.72$25.46

NNN(No Mgt)+10%Ad

- - - - Market $2.00 NNN

(Shops)

Tenant has two (2) - five (5) year options at $13,112.72 /mo and $15,201.24 /mo each with 3% annual increases, respectively.

TOTALS / AVERAGES 21,316 $40,216 $1.89 $482,586 $22.64

OCCUPIED Sq. Ft. 21,316 100.0%VACANT Sq. Ft. 0 0.0% TOTAL Sq. Ft. 21,316 100.0%

WEIGHTED-AVG LEASE TERM REMAINING: 1.90 Years WEIGHTED-AVG LEASE TERM LAPSED: 6.77 YearsWEIGHTED-AVG LEASE TERM FROM INCEPTION: 8.67 Years

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TOTALS / AVERAGES 21,316 $40,216 $1.89 $482,586 $22.64

OCCUPIED Sq. Ft. 21,316 100.0%VACANT Sq. Ft. 0 0.0% TOTAL Sq. Ft. 21,316 100.0%

WEIGHTED-AVG LEASE TERM REMAINING: 1.90 Years WEIGHTED-AVG LEASE TERM LAPSED: 6.77 YearsWEIGHTED-AVG LEASE TERM FROM INCEPTION: 8.67 Years

INVESTMENT OVERVIEW & HIGHLIGHTS

“SURF CIT Y” LIFEST YLE

• Huntington Beach, nicknamed “Surf City USA”

is known for its 9.5-mile stretch of uninterrupted

coastline.

• Huntington Beach is the 4th largest city in

Orange County by population.

• Huntington Beach hosts the World Surfing

Championships and kicks off the AVP Pro Beach

Volleyball World Tour each summer, hosting over

11 million visitors each year,

• HB’s largest employers Boeing and

Quiksilver, help keep the economy strong —

City population over 201,000 and average

household income $121,000+.

• Residents benefit from Huntington Beach

Hospital quality healthcare, and strong

I N V E S T M E N T H I G H L I G H TS

PRIME RETAIL LOCATION

• Location: Subject Property is just off corner

of Beach Boulevard and Warner Avenue. Beach

Boulevard is the main thoroughfare in Huntington

Beach that connects the 405 Freeway to the

coastline along Pacific Coast Hwy.

• Pride of Ownership: Prime real estate in one

of Orange Counties most coveted Beach Cities.

• First Time on Market: Original Owners since

1975. This is the first time property has been on

the market.

• Occupancy: Property is 100% Occupied with a

synergetic service based Tenant mix supported by

the 71,000+ households in the immediate area.

• Dense Retail Area: It is surrounded by National

Retailers including CVS, McDonald’s Marshall’s,

Olive Garden, BevMo!, Nothing Bunt Cakes, 99

Cent Store and approximately one mile from Bella

Terra Retailers including, Whole Foods Market,

REI, Costco, Dick’s Sporting Goods, Nordstrom’s

Rack and many others.

education scores from Golden West College and

Huntington Beach Union High School District.

PROPERT Y FUNDAMENTALS

• Rare Infill Location: Located on large 1.74

acre parcel and 21,316 square foot building with

approximately 240 feet of frontage on Beach

Boulevard.

• Access: Property is approximately 1 mile from

Bella Terra and 405 Freeway.

• High Traffic: The signalized Corner of Beach

Boulevard and Warner Avenue combined Traffic

Counts is over 100,000+ cars per day.

• Population: 1 mile 31,000+, 3 mile 213,000+

• Household Income: 1 mile $82,000+, 3 mile

$106,000+

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KILO STRENGTH SOCIET Y

Web Site: www.kilostrengthsociety.com

KILO Strength Society was created in 2016 and officially opened for business in 2017. The founders

Stephane Cazeault, Alexandra Bernardin, and Kelsey DeSanctis noticed a strength in the industry, and

wanted to provide the best programming, equipment, and coaching all in one place. They offer a variety

of different training programs depending on individual needs. KILO has been a tenant at this location

since 2016.

GRACIE BARRA

Web Site: http://www.otaviosousabjj.com/

Gracie Barra Brazilian Jiu-Jitsu Huntington Beach is a new Brazilian Jiu-Jitsu school in Huntington

Beach, Orange County, CA. They provide Brazilian Jiu-Jitsu programs, developed by the Gracie Barra

Association — the number one Jiu-Jitsu team in the world.

Brazilian Jiu-Jitsu is a martial art, commonly referred to as the ‘Gentle Art.’ Their school is ran by

Professor Otavio Sousa, a 3 time black belt world champion. He is a world-class Jiu-Jitsu competitor,

winning 6 Jiu-Jitsu World Championships and 1 No-Gi Black Belt World Championship, among a large

number of other accomplishments. Gracie Barra has been a tenant at this location since 2015.

NOLEEN DENTAL

Web Site: www.noleendental.com

Noleen Dental provides comprehensive dentistry in Huntington Beach and Santa Ana, CA that is focused

on helping patients look their best and feel their best. The dentist, Dr. Noleen Nguyen, graduated from

USC School of Dentistry, has a passion for helping others and is committed to assisting patients in

meeting dental health and aesthetic smile goals. Noleen Dental serves surrounding communities in

Huntington Beach, including Westminster, Garden Grove, and Fountain Valley. Noleen Dental has been

a tenant at this location since 2015.

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LOTUS CHINESE EATERY

Web Site: http://lotus.cafes-nearby.com/

Lotus Chinese Eatery is a casual, modern Chinese restaurant serving specialties such as Hunan spicy

lamb and crispy duck. This is one of top Halal restaurants in Huntington Beach. Lotus has been a tenant

at this location since 1995.

MEGA MAIDS

Web Site: www.mega-maids.com

Mega Maids is a locally-owned and operated cleaning service in the Orange County area. They offer

fully-customizeable cleaning services for residential and commercial properties. Mega Maids has been a

tenant at this location since 1983.

TK TAILORING

Web Site: www.tktailoring.com

TK Tailoring and Alterations provides fashion design and custom-made clothing with seamstress Kim.

With over 50 years of experience, Tony and Kim make the best husband and wife team in the industry.

All garment perfectly fitted at reasonable price. Bring in fabric or choose from their extensive selection

for any special occasion. TK Tailoring has been at this location since 2009.

THE GIRL CAVE

Web Site: thegirlcave.net

The Girl Cave is an elegant facility that is a premier gathering place in Orange County for important

meetings and celebrations. They offer a wide variety of workshops, classes and entertainment, in

addition to providing an exceptional space for business and private events. Designed with versatility

in mind, the intimate venue may be transformed to meet unique needs for special occasions. The Girl

Cave has been at this location since 2012.

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VAPE AVENUE

Web Site: www.vape1111.com 

The Huntington Beach Vape shop provides many products from E-Liquids to accessories. They currently

have 3 locations. Vape Avenue has been at this location since 2018.

MYSTIQUE SALON

Mystique Salon has been at this location since 2008. Mystique is a full service salon providing haircuts,

color, Brazilian Blowouts, manicures/pedicures and much more.

SWIRLS CREAMERY

A local gourmet chef has created a fun new ice cream concept using a chilled wok surface. Coming Soon!Swirls Creamery

VAPE AVENUE

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AERIAL & PROPERTY PHOTOS

A E R I A L MA P

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AERIAL MAP

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PROPERTY DESCRIPTION

BEA

CH

BLVD

Kilo6,000 SF

DentalNoleen

1,620 SF

MegaMaids

1,800 SF

Vape Avenue1,200 SF

Girl Cave1,200 SF

TK Tailoring1,200 SF

Mystique Salon1,200 SF

Swirls1,200 SF

Gracie Barra2,400 SF

Lotus Restaurant3,496 SF

109 PARKING SPACES WITH 5 ADA

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BEA

CH

BLVD

Kilo6,000 SF

DentalNoleen

1,620 SF

MegaMaids

1,800 SF

Vape Avenue1,200 SF

Girl Cave1,200 SF

TK Tailoring1,200 SF

Mystique Salon1,200 SF

Swirls1,200 SF

Gracie Barra2,400 SF

Lotus Restaurant3,496 SF

109 PARKING SPACES WITH 5 ADA

LOCATION OVERVIEW

H U N T I N G T O N B E A C H , O R A N G E C O U N T Y

Huntington Beach is a seaside city positioned in

the western region of Orange County. Bordered

by the Pacific Ocean on the west, it is known

worldwide for its long 8.5 mile stretch of beautiful

coast, mild climate, and excellent sur fing. The

surf, sand, sun and subtle sophistication found

in the City of Huntington Beach encapsulate the

Californian l ifestyle. I ts ocean swells, endless

sunshine and a f leet of bobbing longboards

have played an instrumental role in earning the

city its well-deserved “Surf City” nickname.

Located 35 miles south of Los Angeles and 90

miles north of San Diego, it is home to more

than 197,000 residents making it the largest

beach city in Orange County. Named for railroad

magnate Henry Huntington who orchestrated

its development, the city is now an epicenter of

activity and entertainment with a large stretch

of sandy beach, mild climate, excellent surfing,

and beach culture. Named one of the "Best

Cities to Live in Orange County" by OC Weekly

, Huntington Beach offers residents a charming

community with ideal weather, a diversi f ied

economy overflowing, good jobs, a wide variety

of housing, an excellent educational system,

boat marinas, numerous parks, and exemplary

health care.

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ECONOMY

To u r i s m a n d t e c h n o l o g y a r e t h e l e a d i n g

industr ies in Huntington Beach today. Home

t o m o r e t h a n 6 5 0 i n d u s t r i a l b u s i n e s s e s ,

i n c l u d i n g B o e i n g , Q u i c k s i l v e r , C a m b r o

Manufacturing, Dynamic Cooking Systems and

C & D Aerospace, Huntington Beach boasts

a diversif ied and dynamic economy. Tourism

remains a vital par t of the economy, as over

11 million visitors flock to the city during the

summer, on weekends and for special events.

Huntington Beach features one of the largest

recreational piers in the world, public parks,

r iding stables and equestrian trails, a marina,

and a wi ld l i fe prese r ve, and an e ight-mi le

biking, inline skating, jogging, and walking trail

along the ocean. As the fourth largest city in

Orange County and the 23rd largest in the State

of Cal i fornia , more than 60,000 people are

currently employed by over 10,000 businesses

in the city.

Huntington Beach is not only k nown for i ts

beaches and technology but also its variety of

food and retail that can be found throughout.

Located in the Downtown Distr ict , there are

more than 50 unique and exciting businesses

that line the streets. Their close proximity to the

ocean mixed with the cities laid back Californian

v ibes of fer a one - of-a-k ind exper iences for

residents and visitors alike. Huntington Beach

is also home to Bella Terra. A Tuscan themed

commercial property with nearly 800,000 square

feet of retail , restaurant, open-air cour tyards

and entertainment. Located just off of the 405

freeway, Bella Terra offers residents and visitors

more than 70 unique restaurants, cafes and

shops. Anchors include Whole Foods, Kohl ’s,

REI , Centur y Theaters, and Cost Plus Wor ld

Market.

Huntington Beach suppor ts a thr iving retai l

economy with a projec ted oppor tunit y gap

of $937.3M. The city is currently home to 9.9

mi l l ion square feet of reta i l space and 109

major reta i l centers. The largest centers in

the city include the 1 million square foot Bella

Terra, 233,000 square foot Town House Plaza,

the 232,000 square foot Seacl i f f Vi l lage, and

the newly construc ted 200,000 Paci f ic Cit y.

Furthermore, Huntington Beach has a vibrant

and diverse Main St. shopping area as well as

multiple costal retail properties.

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O R A N G E CO U N T Y, C A O V E R V I E W

Orange County is the third most populous county in California and the

sixth most populous in the United States. As of 2017, the population is

approximately 3.2 million residents and growing at a rate of 4.5% every

year. The median age is 37.

The County is a hotbed of tourist activity due largely in part by theme

park attractions such as Disneyland and Knott’s Berry Farm. With over

40 miles of coastline, Orange County is the premiere destination for

thousands looking for sun and waves to ride.

While tourism is one of the main economic drivers in the region, many

Fortune 500 companies call Orange County home, including: Ingram

Micro, First American Corporation, Broadcom, Western Digital, and

Pacific Life. Orange County also boasts a thriving tech scene with

software companies such as Blizzard Entertainment, Gateway, Linksys,

and Gateway cluster around the city of Irvine. Orange County’s affluent

residents has attracted a broad range of upscale shopping experiences

in the region such as the South Coast Plaza in Costa Mesa and Fashion

Island in Newport Beach.

Orange County’s unique and profitable retail market continues to

draw in tenants. Orange County concluded 2017 with 15 new big box

deals signed in the region. The most notable included a Hobby Lobby

in Cypress, Bob’s Discount Furniture in Orange, Chuze Fitness in

Anaheim, and a RH Outlet in Irvine. Though the average size of a large

leases diminished, this activity further validated that larger format

retail is not dead and a greater need for mid-sized boxes apparent.

Orange County delivered its only major development tracked by CBRE

Research, The Village at Tustin Legacy. This 111,993-sq.-ft. retail

neighborhood center contains a Stater Brothers grocery store, CVS

Pharmacy, Chipotle, and a Montessori daycare and additional shops

and restaurants.

For more information please visit https://www.ocgov.com/

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ARENAS / SPORTING FACILITIES: 1. Angel Stadium

• Number of Events: Indeterminate. The

venue can host community, charity, and

concert going events, but there doesn’t

seem to be a tally or average of how many

take place each year.

• Annual Visitors: 3,019,583 (2017)

Source: https://www.baseball-reference.com/

teams/ANA/attend.shtml

2. The Honda Center

• Number of Events: Indeterminate. Since

it completed construction in 1993 the

Honda Center has hosted hundreds of

hockey and basketball games, wrestling

matches, concerts, and is planned to be

used for indoor volleyball during the 2028

Summer Olympics.

• Annual Visitors: 709,968 (2014)*

Source: http://www.hockeyattendance.com/arena/

honda-center/ *Most current attendance records

available.

AIRPORTS

• John Wayne Airport

• Annual Flights: 25,482

• Annual Visitors: 4.5 million

• Any Upgrades?: Last major

construction to take place was in 2011

when a new Terminal C was added.

*Source: CBRE Location Analytics & Mapping, 2018

ZILLOW HOUSING ZESTIMATES:

• Orange County Median List Price:

$644,000

• Orange County Median Sales Price:

$600,000

*Data came via RealtyTrac

DISNEYLAND

• Disneyland theme park in Orange County,

California was the first amusement park

to be constructed by Disney: Disneyland

Park and Disney California Adventure.

Combine the magic of Disney with the best

that California has to offer and the result

is Disney California Adventure, a theme

park that celebrates the California in style.

In 2016, Disneyland had an attendance of

17.94 million people. DEMOGRAPHICS

2017 Estimated Population 3,229,809

2022 Projected Population 3,375,451

2017 Est. Households 1,052,359

2017 Avg. Household Income $113,678

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DEMOGRAPHICS

Population 1 Mile 3 Miles 5 Miles

2017 Population - Current Year Estimate 31,267 213,036 527,257

2010-2017 Annual Population Growth Rate 0.60% 0.77% 0.70%

2017-2022 Annual Population Growth Rate 0.65% 0.78% 0.71%

Households

2017 Households - Current Year Estimate 10,077 71,166 168,902

2010-2017 Annual Household Growth Rate 0.49% 0.62% 0.53%

2017-2022 Annual Household Growth Rate 0.59% 0.68% 0.61%

2017 Average Household Size 3.09 2.97 3.10

Household Income

2017 Average Household Income $82,197 $106,486 $102,910

2017 Median Household Income $65,438 $80,072 $76,049

2017 Per Capita Income $26,638 $35,866 $33,279

Housing Units 1 Mile 3 Miles 5 Miles

2017 Housing Units 10,493 73,528 176,009

2017 Vacant Housing Units 416 4.0% 2,362 3.2% 7,107 4.0%

2017 Occupied Housing Units 10,077 96.0% 71,166 96.8% 168,902 96.0%

2017 Owner Occupied Housing Units 3,206 30.6% 41,719 56.7% 98,493 56.0%

2017 Renter Occupied Housing Units 6,871 65.5% 29,447 40.0% 70,409 40.0%

Education

2017 Population 25 and Over 20,404 151,193 369,640

HS and Associates Degrees 10,773 52.8% 76,541 50.6% 187,817 50.8%

Bachelor's Degree or Higher 5,565 27.3% 54,160 35.8% 117,134 31.7%

Place of Work

2017 Businesses 1,926 8,891 19,631

2017 Employees 16,523 79,345 190,077

H U N T I N G TO N B E AC H D E M O G R A P H I C S

TOP EMPLOYERS IN HUNTINGTON BEACH

Employer Number of Employees

1 Boeing 4,391

2 Cambro MFG Inc 1,015

3 Ensign United States Drilling 925

4 GWC 900

5 Hyatt Regency 641

6 C & D Aerospace 555

7 Zodiac Aerospace 542

8 Huntington Beach Hospital 503

9 Huntington Valley Healthcare 381

10 Quiksilver 350

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FOR MORE INFORMATION, PLEASE CONTACT:

TRAM CHURCH Senior Associate Lic. 01478857 +1 949 809 3663 [email protected]

JAMES LEHIGH Associate Lic. 01850077 +1 949 809 3662 [email protected]

RYAN SHARPE Associate Lic. 01940376 +1 949 809 3658 [email protected]

NATHAN HOLTHOUSER Senior Vice President Lic. 01838616 +1 949 229 2273

REBECCA CANALEZ Client Services Team Lead Lic. 01384744 +1 949 809 3661 [email protected]

ASHLEY RUSSELL Marketing Coordinator +1 949 809 3625 [email protected]

SHAUN MOOTHART Debt & Structured Finance Lic. 01773201 +1 949 509 2111 [email protected]

© 2017 CBRE, Inc. The information containing in this document has been obtained for 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. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the Property of their respective owners.

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