27611 La Paz & El Lazo

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1 One of a Kind South Orange County Office Building - For Sale La Paz & El Lazo LAGUNA NIGUEL, CALIFORNIA Investment Properties-SoCal

2 Table of Contents Investment Overview 4 Investment Summary Investment Highlights Property Description 6 Property Details Parcel Map Site Plan Floor Plans Exclusive Agents Gary Stache Lic gary.stache@cbre.com Anthony DeLorenzo Lic anthony.delorenzo@cbre.com Pat Scruggs Lic pat.scruggs@cbre.com Local Market Contacts Keith Black Lic keith.black@cbre.com Jeff Carr Lic jeff.carr@cbre.com Area Overview 14 City Overview Local Map County Overview Regional Map Financials 22 Rent Roll Replacement Cost Doug Mack Lic doug.mack@cbre.com Mark Shaffer Lic mark.shaffer@cbre.com For more information on La Paz & El Lazo, please visit our website at

3 aliso VIEJo IrVInE laguna HIllS lake ForESt aliso VIEJo PlaZa marketplace at laguna niguel San Joaquin Hills (73 toll road) alicia Parkway walmart La Paz & El Lazo Heather ridge LAGUNA NIGUEL, CALIFORNIA El lazo avila road la Paz road

4 Investment Overview

5 Investment Overview La Paz Road & El Lazo Road Laguna Niguel, California Investment Summary Purchase Price $6,950,000 Price Per SF $183 Total Building Size 37,917 SF Investment Highlights Exceptional High Image Owner/User Opportunity One of the highest image buildings in South Orange County, with unique water features, interior rock and garden atrium oasis, people areas and wood highlighted balconies. An Owner/User has the opportunity to occupy up to 13,745 SF today and up to 20,291 SF in early Now is the time to take advantage of the market and protect your business from future rental market spikes. Rather than paying rent to a landlord or investing your money in an alternative investment, your rent will pay off the property mortgage and provide a more attractive after-tax return. An Owner/User will save 134% compared to leasing, with an after-tax equity build-up of $3.09 million over a 10 year period. Total Land Size Property Website Acres Approximately half of the property is commercial, which is in high demand due to its location adjacent to all of the surrounding retail. Creative space with high ceilings and hardwood floors Flexible use property with multiple separate unique to the market access points Dynamic South Orange County corner Location Exceptional location with immediate access to the 73-Toll Road via the four way interchange at La Paz Road, providing easy access to Orange and San Diego County. One of the best office amenity locations in South Orange County. Within 2 miles of: 9 grocery stores, 115 restaurants, 16 banks, 20 health clubs, and 16 shopping centers La Paz is one of the market s major thoroughfares Priced at $6,950,000 ($183 PSF), significantly below the estimated replacement cost of $9,099,986 ($240 PSF). Investment Properties-SoCal 5

6 Area Property Overview Overview

7 Property Description Property Details Address City State La Paz & El Lazo Laguna Niguel California Zip Building Type Year Built 1981 Stories Office/Commercial One/Two Land Size (Acres) Building Size (SF) Office - 18,994 SF Commercial - 18,923 SF Total - 37,917 SF Exterior Walls Tilt-up concrete panels and glass curtain walls Foundation Poured concrete slabs on grade Roof Flat with rolled composition roofing Clear Height Loading Doors Two (2) grade-level doors for the commercial area Configuration The office component is housed in the two-story portion of the structure. This area features an attractive entry decorated with small waterfalls and ponds. The entry leads to a two-story atrium that incorporates the use of additional ponds and fountains, and is also landscaped. This area features a number of individual office suites on both floors. The smallest unit consists of an individual room, the larger units have bullpen areas as well as perimeter offices. A few offices have some wood paneling but most have standard gypsum walls. One office features small interior balcony that looks out over the atrium. Flooring Largely carpet, some vinyl tile and ceramic tile Lighting Recessed florescent fixtures Restrooms Five (5) HVAC The units are heated and cooled by roof-mounted package HVAC units Plumbing The plumbing system is reportedly adequate for the existing use Fire Sprinklers Fire sprinklers were observed in the office and commercial areas Electrical Service 600-1,200 amp service (based on prior appraisal - electrical rooms could not be inspected) Elevator None Parking 111 surface spaces Investment Properties-SoCal 7

8 Floor Plans AVAILABLE SF INPRO - Exp. 2/15 Suite 150: 5,074 SF Suite 160: 1,472 SF Total: 6,546 SF Anareobic - 12,377 SF - Exp. 2/17 Escrow Source - 5,249 SF - Exp. 3/17 Suite 1A-100 Anareobic Suite 150 Suite 160 Escrow Source Suite 101 Suite 100 First Floor Plan La Paz & El Lazo

9 Floor Plans AVAILABLE - 13,428 SF Suite 205 Suite 203 Suite 204 Suite 206 Suite 202 Suite 208 Suite 207 Second Floor Plan Investment Properties-SoCal 9

10 Parcel SubHeader Map La Paz & El Lazo

11 Site Plan LA PAZ ROAD La Paz Road La Paz Road (NAP) El Lazo Road El Lazo Road (NAP) EL LAZO ROAD Investment Properties-SoCal 11 ALLEGRA ROAD AVILA ROAD La Paz Road (NAP)

12 La Paz & El Lazo

13 Investment Properties-SoCal 13

14 Area Overview

15 Area Overview City Overview Laguna Niguel Laguna Niguel is a master planned community located in the coastal San Joaquin Hills of Southern Orange County, California. Located halfway between San Diego and Los Angeles, Laguna Niguel encompasses square miles and is surrounded by the cities of Aliso Viejo, Dana Point, Laguna Beach, Laguna Hills, Mission Viejo and San Juan Capistrano. Laguna Niguel Demographics: 2014 Estimated Population 65, Projected Population 67, Census Population 62, Census Population 62,895 Growth % Growth % 2014 Estimated Median Age Estimated Average Age Estimated Households 25, Projected Households 26, Census Households 24, Census Households 23,667 Growth % Growth % Over one-third of Laguna Niguel is designated open space and is one of the most characteristic features of the city and is unique to Orange County. Laguna Niguel s proximity to the coast makes it a desirable place to live and visit. The majority of the homes in Laguna Niguel are single-family with a median home price of $622,919. Laguna Niguel is home to 33 city and county parks connected by walking trails and neighborhoods that offer a variety of recreational activities including fishing, hiking and biking. Laguna Niguel Top Employers: Rank Employer # of Employees 1 Costco Walmart Capistrano Unified School District Albertsons The Home Depot County of Orange First Team Real Estate Calstar Properties Kohl s Pacific Line Clean Up 120 Investment Properties-SoCal 15

16 aliso Creek road CatalIna ISlanD PaCIFIC ocean newport BEaCH laguna BEaCH aliso VIEJo aliso niguel HIgH SCHool aliso Creek road CHEt HolIFIElD FEDEral BUIlDIng alicia Parkway laguna niguel avila road la Paz road Pacific Park Drive La Paz & El Lazo LAGUNA NIGUEL, CALIFORNIA Chet Holifield Federal Building

17 Local Map La Paz & El Lazo LAGUNA NIGUEL, CALIFORNIA Investment Properties-SoCal 17

18 Area Overview Orange County Situated between Los Angeles and San Diego, in the heart of sunny Southern California is Orange County. Once an agricultural empire for citrus growing, Orange County now boasts a thriving economy, a sophisticated arts scene, and a community of high-powered movers and shakers. Occupying the sloping plains of the Santa Ana Range s foothills to the Pacific Ocean, the area is blessed with brilliant weather, a low unemployment rate, and a rapidly growing job market. Thriving on immigrant dynamism coupled with a long-running technological explosion, this conglomeration of 34 cities has become an international world trade center. A third of the firms in Orange County deal internationally, and nearly half of the population is ethnically diverse. If Orange County were a country it would rank in the top 30 economies worldwide. This 798 square mile landscape hosts dozens of urban pods, and post-industrial communities that include restaurants, businesses, galleries, and anything and everything a person might need. People average less than a half an hour drive to work, and dozens of quality hospitals, universities, and entertainment centers are equally close by. Anaheim is one of the largest of these pods, hosting some of the most famous theme-park attractions and professional sports teams like the NHL s Mighty Ducks and Major League Baseball s Anaheim Angels. Irvine is the home of the University of California campus, a multicultural populace, and its own John Wayne Airport, while Fullerton boasts Cal State Fullerton. Surfers make Huntington Beach their home, and Newport Beach attracts affluent individuals seeking elegant dining and the arts.. The average household income of $97,734 in Orange County is significantly higher than the national average of $69,303 making it one of the wealthiest areas in the United States. In addition to being one of the nation s wealthiest counties, Places Rated Almanac has rated Orange County in the top places to live in the Nation. The crime rate in Orange County is far below the national average, with few violent crimes occurring each year. Although a little over three million people live in Orange County, the residents are spread out among more than 30 cities. Part of the low crime rate results from poverty rates that are significantly lower than the national average. There are fewer children living in poverty in Orange County than most other California communities. Orange County benefits from its up-to-date communications network as well as its modern transportation. Strong infrastructure contributes to Orange County s successful and positive business climate. Orange County is served by a large freeway network with more than 15 major Interstates and State Routes which provides access to the four neighboring counties of Los Angeles, San Diego, Riverside and San Bernardino. Centrally located in Southern California, Orange County has easy access to the ports of Los Angeles and Long Beach, the two largest container ports in the world. The addition of new toll roads in South County and improvements to the existing freeway system in Central County will continue to fuel the growth well into the 21st century. Orange County is home to one major commercial airport; John Wayne, originally known as the Orange County Airport. John Wayne Airport handles over 9 million passengers annually through 14 different airlines. In 2011, a nearly $550 million expansion was completed that brought six new gates and new parking facilities allowing 2,000 additional spaces to be added to the airport. Orange County Demographics: 2014 Estimated Population 3,140, Projected Population 3,302, Census Population 3,010, Census Population 2,846,342 Growth % Growth % 2014 Estimated Median Age Estimated Average Age Estimated Households 1,035, Projected Households 1,091, Census Households 992, Census Households 935,274 Growth % Growth % La Paz & El Lazo

19 Orange County Top Employers: Rank Employer # of Employees 1 Walt Disney Co. 25,000 2 University of California, Irvine 21,800 3 St. Joseph Health 11,679 4 The Boeing Company 6,873 5 Kaiser Permanente 6,300 6 Bank of America Corp 6,000 7 Memorial Care Health System 5,545 8 Target Corp 5,400 9 Cedar Fair LP 5, California State University, Fullerton 4,984 Economy Consistently ranked in Forbes magazine s top 50 economically thriving metro areas, Orange County enjoys lower business costs, a highly qualified workforce, and one of the lowest unemployment rates in the country. Because of the more affluent population and an economic mix that is slanted toward high-paid biotechnology and professional service jobs, incomes also rise faster than in neighboring counties. Everything from the computer software sector to the communications sector has flourished in recent years. One-fifth of the workforce is now made up of high paying technical jobs and professional jobs. Major employers in Orange County include Hughes Aircraft, Weber Aircraft, Hewlett Packard, and IBM. Attraction and retention of the world s leading companies will remain high due to Orange County s 17 colleges and universities, one of the best educated work forces in the world, and an independent attitude. Other rapidly growing sectors are construction, professional and business services, and leisure and hospitality. Tourism accounts for nearly 10% of the county s workforce, with places such as Disneyland and the giant, post- modern, fantasy shopping Fashion Island Mall attracting countless visitors. The finance, insurance, and real estate sectors are also experiencing growth, despite a corresponding decline in the rest of California. Small businesses flourish in the area s entrepreneurial climate. With job rates projected to grow significantly each year, Orange County residents have a lot to look forward to. Orange County is roughly 1% of the U.S. Population, but it has 3% of Fortune 500 companies. Places Rated Almanac puts Orange County in the top ten cites in the nation for job growth and retention. Education The education opportunities in Orange County are excellent and varied, the area is home to two major universities. The University of California, Irvine, is the fastest growing campus in the U.C. system. U.C.I. has grown in notoriety in recent years, in the mid 1990 s two faculty won the Nobel Prize. It was the first time in history that a public university won two Nobel Prizes in the same year. There are a host of other smaller, private, or religiously affiliated colleges in Orange County. Chapman University, Cypress College, Fullerton College, Golden West College, Saddleback College, and many others are scattered across the area s famous groves. Investment Properties-SoCal 19

20 Regional Map BUENA PARK FULLERTON CORONA CYPRESS Beach Blvd ANAHEIM ORANGE GARDEN GROVE WESTMINSTER TUSTIN FOOTHILLS SANTA ANA FOUNTAIN VALLEY TUSTIN CLEVELAND NATIONAL FOREST HUNTINGTON BEACH COSTA MESA JOHN WAYNE AIRPORT FOOTHILL RANCH LAKE ELSINORE NEWPORT BEACH IRVINE LAKE FOREST RANCHO SANTA MARGARITA LAGUNA WOODS MISSION VIEJO La Paz & El Lazo LAGUNA NIGUEL, CALIFORNIA ALISO VIEJO LAGUNA HILLS COTO DE CAZA LAGUNA BEACH LAGUNA NIGUEL P a c i f i c O c e a n SAN JUAN CAPISTRANO DANA POINT SAN CLEMENTE La Paz & El Lazo

21 Area Overview Orange County Overview (Continued) Tourism More than 43 million tourists visit Orange County annually, spending approximately $8.7 billion and supporting nearly 160,000 local tourism industry jobs. With over a quarter of Orange County s landscape designated as open space, including the 124,000-acre Cleveland National Forest, the area is a haven for bikers, hikers, and other outdoor enthusiasts. Anaheim s Disneyland, the most famous attraction in Orange County, as well as the famed Knott s Berry Farm, and Adventure City are among the biggest attractions for kids of all ages. For sports lovers, baseball fans have been cheering on the California Angels at Edison Field since Also nearby is Arrowhead Pond, home to the Mighty Ducks hockey team. When the Ducks aren t at home, the Pond serves as a popular venue for rock concerts and ice shows. Additionally, Orange County s 42 mile coastline offers all types of seafaring activities including some world class boating, snorkeling, scuba diving, and fishing. There are many marina s lining the coast that offer boat cruises, fishing trips and charter services. Visitors can explore areas such as the Big Corona, where mild waves beckon young swimmers, or the numerous, rugged coves north of Laguna Beach, where snorkelers and scuba divers can view a plethora of underwater life. Orange County is also renowned for its numerous popular shopping destinations including: the upscale outdoor Fashion Island Mall in Newport Beach, the Brea Mall, and The Outlets at Orange, Irvine Spectrum Center, Downtown Disney and the luxury shopping center, South Coast Plaza in Costa Mesa. South Coast Plaza is visited by approximately 24 million visitors annually and generates annual sales of $1.5 billion, making it the highest grossing center in the United States. Besides providing an extravagant shopping experience with over 250 stores South Coast Plaza offers many services to guests such as foreign language assistance, shuttle services, and money exchange. Orange County Top Attractions: Laguna Art Museum Mission San Juan Capistrano Orange County Zoo Disneyland Park Disney s California Adventure Park Knott s Berry Farm Investment Properties-SoCal 21

22 Financials Rent Roll La Paz El Lazo Rent Roll 15 Tenant Name Floor Rate & Amount Type & Suite Number SqFt per Year Changes Changes Operating Expense Lease Dates & Term Bldg Share per Month on to Reimbursements 1 The Escrow Source, Inc $21.23 Dec-2014 $ BY Office, Suite: 100 5,249 $111,444 Dec-2015 $22.38 Dec-2011 to Mar % $ Months $9,287 2 OWNER/USER (101) MTM $ GROSS Office, Suite: $0 Expires Aug % $0.00 $0 Lease expired 4/13. Tenant is currently on month-to-month terms at $720 /Mo. Analysis assumes tenant vacates and Owner/User occupies the space. 3 Inpro Marketing Corporation $ NNN Commercial, Suites: 150/160 6,546 $58,752 (Commercial) Mar-2012 to Feb % $ Months $4,896 4 OWNER/USER (202/203) $ GROSS Office, Suites: 202/203 5,891 $0 Expires Aug % $0.00 $0 5 OWNER/USER (204) MTM $ GROSS Office, Suite: $0 Expires Aug % $0.00 $0 Lease expired 12/13. Tenant is currently on month-to-month terms at $350 /Mo. Analysis assumes tenant vacates and Owner/User occupies the space. 6 OWNER/USER (205/206/207) $ GROSS Office, Suites: 205/206/207 6,792 $0 Expires Aug % $0.00 $0 7 OWNER/USER (208) MTM $ GROSS Office, Suite: $0 Expires Aug % $0.00 $0 Lease expired 8/13. Tenant is currently on month-to-month terms at $575 /Mo. Analysis assumes tenant vacates and Owner/User occupies the space. 8 Anareobic, LLC $8.57 Dec-2014 $9.64 NNN Commerical, Suite: 1A ,377 $106,032 Dec-2015 $10.17 (Commercial) Dec-2011 to Feb % $ Months $8,836 Tenant has a one-time Termination Option at the 36th Mo with six (6) months written notice and an early termination penalty of $27,060. Tenant has one (1) - three (3) year option at FMV with six (6) - nine (9) months notice. Total SqFt 37,917 Total Available SqFt 13,745 6/25/2014 This page is part of a package and is subject to the disclaimer on the Occupancy Costs Summary. CBRE Financial Consulting La Paz & El Lazo

23 NNN Financials Estimated Replacement Cost Land Size 100,711 Square Feet Building Size 37,917 Square Feet HARD COSTS Land Acquisition $ $ 3,021,322 Hard $100 on Office $50 on Commercial $ 2,845,550 Tenant $45 on Office $10 on Commercial $ 1,043,960 TOTAL HARD COSTS $ 6,910,832 76% SOFT COSTS A & 2.0% $ 138,217 Insurance $0.37 PSF 14,029 Property Taxes 1.03% Hard Costs 71,182 Development Fees $3.00 PSF of Bldg. Area 113,751 Legal 1% Hard Costs 69,108 Developer's Profit 8% Hard Costs 552,867 Loan Fee 1% Hard Costs 69,108 Contingency 2% Hard Costs 138,217 Interest on Land Carry 3% Land Cost 90,640 Interest on Construction 5% Hard Costs 345,542 Interest on Lease Up 3% Hard Costs 207,325 Leasing Commission $ PSF 379,170 TOTAL SOFT COSTS $ 2,189,154 24% Total Development Costs $ 9,099, % Cost Per Square Foot $ Economic Rent Calculation Replacement Costs $ Required Return 9.0% $ Operating Expenses $0 $ - Less Vacancy/Credit 5% $ 1.08 Economic Rent Required, PSF per year (NNN) $ Economic Rent Required, PSF per month (NNN) $ 1.89 Investment Properties-SoCal 23

24 Exclusive Agents Gary Stache Lic Anthony DeLorenzo Lic Pat Scruggs Lic Local Market Contacts Keith Black Lic Jeff Carr Lic Doug Mack Lic Mark Shaffer Lic Jamboree Rd., Ste 100 Newport Beach, CA Capital Markets Investment Properties-SoCal