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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.