REPOSITIONED CLASS A OFFICE OPPORTUNITY WITH EXCEPTIONAL IN-PLACE CASH FLOW & VALUE-ADD UPSIDE THROUGH LEASE UP OF TOP FLOOR ORANGE | CALIFORNIA Holliday GP Corp. (“HFF”), a California licensed real estate broker, California License #01385740. *Architectural Rendering
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ORANGE | CALIFORNIA · Architectural Engineering, Building Design, Construction Management Revenue (TTM) $18.76B Market CAP $5,717B Number of Employees 87,000 Sources: Yahoo Finance
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REPOSITIONED CLASS A OFFICE OPPORTUNITY WITH EXCEPTIONAL IN-PLACE
CASH FLOW & VALUE-ADD UPSIDE THROUGH LEASE UP OF TOP FLOOR
ORANGE | CALIFORNIA
Holliday GP Corp. (“HFF”), a California licensed real estate broker, California License #01385740.
*Architectural Rendering
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E Address 999 W. Town and Country Rd.Orange, CA 92868
Building Size 98,907 SF
Total Leased % (as of 1/1/2019) 74% (100% leased to AECOM through 12/31/18)
Typical Floor Plates 25,000 RSF
Year Built 1976, Renovated 2010 & 2018
Site Area 2.82 Acres
Parking Ratio 4 : 1,000 SF
Total Floors 4
2019-2024 Lease Expirations 0%
The OfferingHFF, as exclusive advisor, is pleased to present the exceptional opportunity to acquire the 100% fee simple interest in 999 W. Town and Country (the “Property”), a 98,907 SF fully renovated four-story office building located in the Town and Country Corridor in Orange, CA. The Property will be 74% leased to AECOM (NYSE:ACM, Moody’s: Ba2) on a renewed 10 year lease, providing an attractive and stable in-place cash flow. Situated on 2.8 acres, the Property is undergoing an extensive renovation transforming it to best-in-class standards.
Strategically located between two of Orange County’s most vital arterial freeways (I-5 to the West and CA-22 to the North), the Property provides tenants with the coveted ability to attract talent from throughout the Orange County, Los Angeles, and Riverside counties. As the Town and Country Corridor continues to evolve into an urban environment with direct access to walkable retail and service amenities and an abundance of housing options, the Property is positioned to benefit from the continued increase in leasing demand and upward movement in market rental rates.
Exceptional In Place Cash Flow
Substantial Capital Investment In Progress
Growing Urban Work Environment
Major Transportation Corridor
Discount to Replacement Costs
Exceptional Fundamentals & Economic Diversity
INVESTMENT SUMMARY | 3
Investment Merits
Exceptional In-Place Cash Flow through GloballyRecognized AECOMThe property will be 74% leased (100% leased through 12/31/18) to AECOM (NYSE:ACM, Moody’s: Ba2) on a ten (10) year term with annual rent increases, providing investors secure long term in-place cash flow. In addition, a significant TI allowance was issued to AECOM providing refreshed Title 24 compliant work space as well as renovated lobbies and restrooms. AECOM has occupied the Property as an owner or lessee for over 21 years; leasing the property since 2006 and as an owner/user from 1997 to 2006.
Ranked #1 in Engineering News Record‘s
“TOP 500 DESIGN FIRMS” for 8th consecutive year
Named one of Fortune magazine’s
“WORLD’S MOST ADMIRED COMPANIES” for the fourth consecutive year
S&P 400 | #161 FORTUNE 1000 (June 2017)
Type PublicTraded As NYSE: ACM
Industry Technical Services
Founded 1990
Headquarters Los Angeles, CA
ServicesArchitectural Engineering, Building Design, Construction Management
Revenue (TTM) $18.76B
Market CAP $5,717B
Number of Employees 87,000
Sources: Yahoo Finance
Lease SF % of NRA
Lease Expiration
Term Remaining
73,171 SF 74% May 2028 10
*as of 1/1/19
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Tenant overview
4th Floor Leasing Opportunity
*Architectural Rendering
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Value-Add Opportunity through Vacant 4th Floor Lease upWith AECOM’s contractual obligation to lease the 4th floor continuing through the end of 2018, potential investors have the ability to craft an aggressive and sound business plan to maximize value while in the interim collecting rent from AECOM through December 2018. Furthermore, with limited options in the market for 25,000 SF of contiguous office space, investors have the ability to capitalize on the upward movement of rents and declining vacancy in the Town and County Corridor and Central Orange County Submarket.
Redefining the Central Orange County MarketCentral Orange County’s emerging growth and transformation presents an exceptional opportunity to capitalize on tenant demands for an urban work environment and experiential retail amenities. Situated in the Town and Country Corridor, the Property benefits from an abundance of walkable retail amenities, 1,885 new and/or proposed multi-family units, and a close proximity to Central Orange County’s prime executive housing options. Furthermore, with the Platinum Triangle to the NW and Downtown Santa Ana to the SW, the Property’s central location is served by the abounding amenities Orange County has to offer.
Metrolink• Honda Center – 18,300 seat entertainment arena; home to the NHL’s Anaheim Ducks• LT Platinum – Proposed Mixed-use development with 415K SF of commercial space
& 95K SF of entertainment space• Angel Stadium – Home to MLB’s Los Angeles Angels of Anaheim• Disneyland – 2nd most visited theme park in the world (17.9M in 2016)• Anaheim Convention Center – 1.1M attendees annually• 4th Street Market Place – Progressive culinary hub in downtown Santa Ana• Westfield MainPlace Mall – Anchored by Nordstroms, Macy’s, 24 Hour Fitness
Santa Ana
395,000 VPD
City Place
Prisma: Multi-Family 182 Units Class A
Eleven 10: Multi-Family260 Units Class A
Completion Date: May 2018
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Investment Merits
INVESTMENT SUMMARY | 5
CHOC Commerce Tower
St. Joseph Medical Plaza
Platinum Triangle
AnaheimAngels
Stadium
The Outlets at Orange
MainPlace Mall
Orange Town & Country Shopping Center
146,000 VPDOld Towne
Orange
Chapman University
Future 262 Unit Class A Multi-Family
Development (Toll Brothers)
New Parking
Structure
ARTIC Hub
Honda Center
A-TownAnaheim Convention
Center
LT Platinum
Future Proposed Multi-Family
TOWN AND COUNTRY ROAD
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P R O P O S E D D E S I G N | C O A S T A L C O M F O R T S
PERSPECTIVE
Extensive Renovations, Institutional Quality AssetThe improvements currently underway will modernize the features of this property to Class A institutional quality standards. Improvements include significant tenant improvements (Title 24 compliant) for AECOM, fully renovated lobby, restrooms (1-3 floors), exterior enhancements, signage package, landscaping enhancements, and a brand new 352 stall 5-story parking garage.
Future 262 Unit
Class A
Multi-Family
(Toll Brothers)
Subject Property
Parking Structure
999 W. Town and Country
*Architectural Rendering
INVESTMENT SUMMARY | 7
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P R O P O S E D D E S I G N | C O A S T A L C O M F O R T S
PERSPECTIVE
Location Served By Major Transportation Corridors With frontage along the CA-22, the Property also benefits from easy access to the I-5 Freeway, Orange County’s most important North-South arterial connecting the area to Los Angeles to the North and San Diego to the South.
• Convenient freeway access to the 22 Freeway which sees an estimated 146,000 vehicles per day
• Easy freeway access to the 5 Freeway located less than 3/4 mile West of the Property which sees an estimated 395,000 vehicles per day
• Central to the four regions of Orange County, Los Angeles County, Riverside County and San Bernardino County providing immediate accessibility to all major employment pools in Southern California
• Located 10 minutes from John Wayne International Airport and 20 minutes from Long Beach International Airport
Discount to Replacement CostThe Property provides investors the opportunity to acquire a high quality “like new” asset at a discount to replacement cost, estimated to be approximately $440 per SF. Peak level construction costs, coupled with the supply constraints have created significant barriers to competitive development applying upward pressure on rental rates. Furthermore, current market rents are approximately 35% below rents necessary to justify new construction.
Strong Job Growth and Increasing Economic Diversity With a March 2018 unemployment rate of only 2.8%, Orange County’s labor market is burgeoning and is lower than both the state (4.2%) and nation (4.1%) for that same period. Orange County job growth has reached its highest level since 2000 with health services acting as the largest driver of job creation. The significant growth of this highly educated, diversified employment pool will further increase demand for Orange County office space and support continued increases in market rents.
ATLANTA • AUSTIN • BOSTON • CAROLINAS • CHICAGO • DALLAS • DENVER • HOUSTON • INDIANAPOLIS • LOS ANGELES • MIAMI • NEW JERSEY • NEW YORK CITY ORANGE COUNTY • ORLANDO • PHILADELPHIA • PHOENIX • PITTSBURGH • PORTLAND • SAN DIEGO • SAN FRANCISCO • TAMPA • WASHINGTON D.C. • LONDON
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