43455 BUSINESS PARK DRIVE Single Tenant Net Leased Investment Opportunity Temecula, CA OFFERING MEMORANDUM
43455B US I N ES S PA R K D R I V E
Single Tenant Net Leased Investment OpportunityTemecula, CA
OFFERING MEMORANDUM
2 COLLIERS INTERNATIONAL
THE OFFERING
OfferingSummary 4
OfferingHighlights 5
Property Details 6
Lease Details 7
Parcel Map 10
MARKET OVERVIEW
Temecula Industrial Market Overview 12
TENANT PROFILE
Millipore Sigma 17
PAUL LAFRENZSenior Vice PresidentLic. No. 00817354+1 858 677 [email protected]
4350 La Jolla Village Dr., Ste. 500San Diego, CA 92122
Lic. No. 01908588+1 858 455 1515 MAINcolliers.com/sandiego
*Please do not disturb tenant.Theinformationcontainedherein,includinganproformaincomeandexpenseinformation(collectively,the“Information”)isbaseduponassumptionandprojectionsandhasbeencompiledormodeledfromsourcesweconsiderreliableandisbasedonthebestavailableinformationatthetimethebrochurewasissued.However,theInformationissubjecttochangeandisnotguaranteedastocompletenessoraccuracy.WhilewehavenoreasontobelievethattheInformationsetforthinthisbrochure,underwriting,cashflows,valuation,andotherfinancialinformation(oranyInformationthatissubsequentlyprovidedormadeavailabletoyou)containsanymaterialinaccuracies,norepresentationsorwarranties,expressorimplied,aremadewithrespecttotheaccuracyorcompletenessoftheInformation.IndependentestimatesofproformaincomeandexpensesshouldbedevelopedbeforeanydecisionismadeonwhethertoinvestintheProperty.Summariesofanydocumentsarenotintendedtobecomprehensiveorall-inclusive,butratheronlyoutlinesomeoftheprovisionscontainedthereinandarequalifiedintheirentiretybytheactualdocumenttowhichtheyrelate.YouunderstandthattheInformationisconfidentialandisfurnishedsolelyforthepurposeofyourreviewinconnectionwithapotentialinvestmentintheProperty.YoufurtherunderstandthattheInformationisnottobeusedforanypurposeormadeavailabletoanyotherpersonwithoutexpresswrittenconsentofColliersInternational.Thisofferingissubjecttopriorplacementandwithdrawal,cancellation,ormodificationwithoutnotice.ThispublicationisthecopyrightedpropertyofColliersInternationaland/oritslicensor(s).©2018.Allrightsreserved.
TABLE OF CONTENTS
4 COLLIERS INTERNATIONAL 5THE OFFERING
THE OFFERINGOFFERINGHIGHLIGHTS
> Price: $9,137,000
> CAP Rate: 5.5%
> Millipore Sigma, a Merck KGaA Darmstadt, Germany Company, a worldwide credit Tenant
>RecentleaseextensionthroughDecember31,2025
>LowTemeculaindustrial/flexvacancyof2.0%Colliers International,asexclusiveadvisortoSeller, ispleasedtopresenttheopportunitytoacquire43455 Business Park Drive, asingle tenantnet leased industrial/R&D investment located inTemecula,California.Thisapproximately44,317squarefootpropertyisleasedtoMilliporeSigma,aMerck&Companywhollyownedsubsidiary,onaleaseextensionthroughDecember31,2025.
6 COLLIERS INTERNATIONAL 7THE OFFERING
PROPERTYDETAILS
LEASEDETAILS
Occupancy: ThebuildingisleasedtoMilliporeSigmawithaleaseexpirationdateofDecember31,2025
Rent: $0.95/SF/monthNNN
Rent Increases: 3%peryearoverthepreviousyearsrent
Square Footage: Approximately44,317SF
Lease Term: Decemeber31,2025
NOI: $502,512Access/Visibility: AccesstothePropertyisprovidedviaBusinessParkDrive.
Land Area: ±2.45 acres or 106,722 SF
Parking: 118 spaces
Zoning: LI&SC
Occupancy: ThebuildingisleasedtoMilliporeSigma,aMerckKGaADarmstadtGermanyCompany
Address: 43455 Business Park Drive, Temecula, CA 92590
Location:
43455 Business Park Drive is located on the north side of BusinessPark Drive, one parcel northwest of Rancho California Road, and lessthan0.5miles from Interstate 15.Thebuildingsitsonthewestsideofthe Property with the asphalt paved parking lot on the east side. Theparking lot is triangular shaped and adjacent and west of Diaz Road.
Year Built: 1999
APN: 921-020-091-6
8 COLLIERS INTERNATIONAL 9THE OFFERING
RANCHO CAL IFORN IA ROAD
BUSINESS PARK DRIVE
DIAZ ROA
D
Temecula Town Center
Old Town Temecula
43455BUSINESSPARK DR
YNEZ ROAD
CONSTRUCTION COMPONENTS
> FoundationConcreteslabongrade
> FloorsCarpetinprivateofficeareas,carpetandresilienttileincommonareasandopenofficespace,vinylortileinrestroomsandkitchen,andconcreteinthewarehouse
> Stories Two
> Exterior Walls Concretetilt-up
> HVACPackagedHVACunitsontheroof
INTERIOR COMPONENTS
> CeilingsCombinationofhungacousticalceilingtilesandopentotheroof-deck
> Clear HeightTheclearheightisapproximately20-22feet
> RestroomsTherearetwosetsofrestroomsonthefirstfloorandonesetonthesecondfloor
> LightingFlourescentlightingfixturesintheofficeareasandceilinghungfixturesinthewarehousearea
> Interior PartitionsPainted,textureddrywall.Warehouseincludesexposeddrywall
> Loading Docks/Doors 2docks,1hasbeenfilledin.2gradedoors
11MARKET OVERVIEW10 COLLIERS INTERNATIONAL
© 2012-2017 Digital Map Products. All rights reserved. 1
185 feet
PARCELMAP
RANCHO CAL IFORN IA ROAD
BUSINESS PARK DRIVE
DIA
Z R
OA
D
MARKET OVERVIEW
ThecityofTemeculaislocatedinsouthwestRiversideCounty.Thecity’seconomyisdominatedbytourism,butthecityalsohasadiversified
economicbase.Thepropertyislocatedinthewesternportionofthecity.ItisconvenientlyaccessedwithcloseproximitytoI-15.Surrounding
land uses are largely industrial in nature.
12 COLLIERS INTERNATIONAL 13MARKET OVERVIEW
TEMECULAINDUSTRIAL
MARKET
Supply
Currently, there are three buildings under construction – HamannCompanies’ 53,259 SF Remington Distribution Center at 42006RemingtonAve,the29,386SFWestsideBusinessCentre’sBuilding1andthe26,566SFZevoIndustrialCenterBuilding2.Additionally,therearetwoproposedbuildingsthatareplannedforconstructionin2018 totaling 26,800 SF.
Absorption
CombinedIndustrial/R&DnetabsorptioninTemeculatotaledapositive112,114SFduringQ22018.Overthepastfiveandahalfyears(2013-Q22018),overallpositivenetabsorptionhasbeenverystrongwith896,878 SF.
SUMMARY OVERVIEW
AsofQ22018,theTemeculamarkethadatotalindustrialandflexinventoryof11,504,987SFwith230,613SFvacantindicatingacurrentvacancyrateof2.0%.143,689SFofnewconstructionwascompletedinQ22018.ThiswasaClassAindustrialspecbuildingcompletedat41753DendyParkway–MCABusinessCenterandsoldtoWesternPlastics,anowner/user.
Vacancy
Theoverallvacancyrateof2.0%inQ22018amountedtoa60basispoint(bps)decrease froma year ago (2.6%Q22017).Vacancyhas tended tofluctuatebetween2%and4%overthepastthreeyearsandwilllikelydosoin2018.
15TENANT PROFILE
JEFFERSON AVE
DIAZ ROAD
RANCHO CALIFORNIA ROAD
WINCHES
TER ROAD
YNEZ ROAD
MARGARITA ROAD
43455 BUSINESS PARK DR.
16 COLLIERS INTERNATIONAL 17TENANT PROFILE
TENANT PROFILEHISTORYAtMerckKGaA,Darmstadt,Germany,wethinkingenerations.Ourgoalistopassthecompanyontothenextgenerationbetterthanwefoundit.Thisisthemindsetthathasallowedustoexistforalmost350years.Thegrowthoftheorganizationfromafamily-runpharmacyin1668intotoday’smultibillion-dollarpharmaceuticalandchemicalcompanyistheresultof13generationsofscientists,pharmacistsandchemistsdedicatedtoadvancingdiscoveriesthatimprovethelivesofpeoplearoundtheworld.
Merck KGaA, Darmstadt, GermanyIn1668,FriedrichJacobMerckpurchasedtheEngelPharmacyinDarmstadt,Germany.
The transformation ofMerck KGaA, Darmstadt, Germany to a research-driven industrial companywasmarked in 1827when EmanuelMerck isolated andcharacterizedalkaloidsfordistributiontochemists.Asthecenturyprogressed,sodidthecompany.Newultrapureproductsweresold;thefirstbiotechnologyproductionprocesswasintroduced;andMerckKGaA,Darmstadt,Germanyenteredthemarket.
Today,MerckKGaA,Darmstadt,Germanyisaglobalpharmaceutical,chemicalandlifesciencecompanywithahistorythatbeganin1668andafutureshapedbyapproximately50,000employeesin66countries.
Sigma-AldrichSigmaandAldrichwerefoundedseparatelyin1935and1951,respectively,tosupplybiochemicalsandchemicalstoresearchscientistsintheU.S.Bothcompaniesstartedwiththeproductionanddistributionofasingleproprietarychemical:Adenosinetriphosphate(ATP)bySigmaand1-methyl-3-nitro-1-nitrosoguanidine(MNNG)byAldrich.Formanyyears,thetwocompaniesgrewindependently,SigmaservingprimarilybiochemistsandAldrichservingorganicchemists.
Whenchangingtrendsinchemicalresearchconfirmedthesynergytoberealizedfromtheircomplementaryproductofferings,AldrichChemicalCo.mergedwithSigmaInternational,Ltd.in1975,formingSigma-AldrichCorporation.Withthismarriageofbroadcapabilitiesandresources,annualdouble-digitsalesgrowthbecamethestandardinthe1980sand1990s,withsignificantexpansioninfacilities,acquisitionsandventuresintonewmarketsectors.
Millipore CorporationIn1954,amodestfiltrationcompanywithjustahandfulofemployees,openedforbusiness.Thecompanypioneeredtheuseofmembranetechnologyinhundredsofapplications.LaterchangingitsnametoMilliporeCorporationtoreflect itsgrowingrangeofproductsandexpandedcorecapabilities,thecompanywouldexpand-throughstrategicacquisitions,targetedcapitalinvestmentsandorganicgrowth-toaglobal,billion-dollarlifesciencecorporation.
EMD MilliporeIn2010,MilliporeCorporationwasacquiredbyMerckKGaA,Darmstadt,Germanyandbecamepartofthecompany’slifesciencetoolsdivision,operatinginNorthAmericausingtheumbrellabrand“EMD.”Witharangeofmorethan60,000productsonoffer,thisdivisioncapturedsignificantopportunitiesinhigh-growth,high-marginmarketsegmentssuchasbio-researchandbio-production.
MilliporeSigmaOnNovember18,2015,MerckKGaA,Darmstadt,Germany,announcedthecompletionofits$17billionacquisitionofSigma-Aldrich,creatingagloballeaderinthe$140billionindustrytohelpsolvethetoughestproblemsinlifescience.Thistransactionbringstogethertheworld-classproductsandservices,innovativecapabilitiesandexceptionaltalentofEMDMilliporeandSigma-Aldrichtocreateagloballeaderinthelifescienceindustry:MilliporeSigma.
What’s Next to Come…Inthecomingyears,MerckKGaA,Darmstadt,GermanywillbetransformingtheDarmstadtsiteintoacontemporaryglobalheadquarters,includingastate-of-the-artInnovationCentertopromoteinterdisciplinaryprojectworkamongemployees,aswellasanewbuildingthatwillhouseVisitorReceptionandaguestrestaurant.
Inaddition,thelifesciencebusinessofMerckKGaA,Darmstadt,Germanyisinvesting$115millioninanewlifesciencecampusintheBostonarea,oneofthemostimportantscienceandtechnologyhubsintheworld.Thenewcampuswillserveasapremierglobalcustomerdestination,housingastate-of-the-artexploratoryenvironmentwhereourscientistsandengineersworktogetherwithcustomerstohelpsolvetheirtoughestlifesciencechallenges.
43455B US I N ES S PA R K D R I V E
OFFERING MEMORANDUM
PAUL LAFRENZSenior Vice PresidentLic. No. 00817354+1 858 677 [email protected]
4350 La Jolla Village Dr., Ste. 500San Diego, CA 92122
Lic. No. 01908588+1 858 455 1515 MAINcolliers.com/sandiego