LA JOLLA VALUE-ADD INVESTMENT OPPORTUNITY

Transcription

1 OFFERING MEMORANDUM LA JOLLA VALUE-ADD INVESTMENT OPPORTUNITY Shepherd Trust Properties - The Girard Shops & Offices at La Jolla Village Girard Ave & 7435 Fay Ave La Jolla, California Approximately 33,074 SF: Two-Story Retail and Office Buildings with 3 Surface Parking Lots exclusively offered by: mike slattery Team Leader mike.slattery@cassidyturley.com CA Lic SCOT EISENDRATH Financial Advisory Services scot.eisendrath@cassidyturley.com CA Lic erika Kruse Senior Marketing Coordinator erika.kruse@cassidyturley.com CA Lic

2 Offering Statement/Disclaimer LA JOLLA VILLAGE 6

3 Executive Summary The Property Cassidy Turley San Diego, as exclusive agent for the Seller, is pleased to present to qualified investors the opportunity to acquire Shepherd Trust Properties The Girard Shops & Offices at La Jolla Village, Girard Ave & 7435 Fay Avenue (the Project ), a true value-add investment opportunity located in the heart of Southern California s most desirable coastal resort community of La Jolla, California. The Project is a two-story retail and office building complex totaling approximately 33,074 square feet of retail and office space with on-site surface parking lots situated on approximately 38,500 square feet (0.88 AC) of total fee land area. The Project offers approximately 225 feet of outstanding retail street frontage on Girard Avenue. The Project is a unique blend of specialty and service retailers, upscale boutiques and salons with approximately 21,512 square feet of total retail space on the ground floor, and approximately 11,562 square feet of private office suites located on the second floor. The individual office suites range in size from approximately 177 to 1,428 square feet. The majority of office suites and common areas were renovated in 2011 with new paint, carpeting, upgraded lobby and restrooms. These improvements will allow the Project to be repositioned to meet the growing demands from smaller office and retail users in this market, thus increasing the overall Project s value. Strategically located near the busy intersection of Girard Avenue and Pearl Street, the Property consists of four (4) separate legal parcels totaling approximately 38,500 square feet (0.88 AC) of fee land area. On-site tenant and customer parking is conveniently located in several rear surface parking lots. There is also abundant public parking available in nearby public parking facilities and on-street parking surrounding the Project. The Project is located just two blocks south of Torrey Pines Road, offering exceptional ingress and egress to the Village of La Jolla. Existing zoning allows mixed-use development for residential, retail and office uses. Higher bonus densities may be available for retail and residential mixed use projects. Current development guidelines allow a maximum F.A.R. of 1.7. Market Overview The La Jolla Village market is made up of nearly 8,500 acres, with 22,000 homes and over 47,000 residents. This upscale community consists of seven miles of prime coastline that boasts some of the most expensive real estate in Southern California. The average household income in La Jolla is estimated to be $144,214. The commercial real estate market in La Jolla Village emulates this wealth, commanding some of the highest rents in Southern California. La Jolla is a very strong market that caters to a unique clientele of both foreign and domestic businesses, residents and investors. Downtown La Jolla, specifically Prospect Street and Girard Avenue corridors, consistently generate the highest levels of retail and office activity in the Village of La Jolla. As a preferred location for office and retail tenants seeking San Diego s premier business address, demand for space in the Village of La Jolla has increased tremendously over the past 10 years. Downtown La Jolla is home to major restaurants and hotels, high-end boutiques, law firms, securities firms, insurance firms, accounting firms and real estate offices. shepherd trust properties / 1

4 Executive Summary offering summary Property Offering: Fee simple interest in two 2-story retail storefront/office buildings and 1-story retail building with three (3) surface parking lots. Outstanding retail exposure on Girard Ave with 225 ft. of prime street frontage. Address: Girard Ave & 7435 Fay Ave, La Jolla, California Total Square Feet: Occupancy: Land Area: Total Land Area: 33,074 SF Retail: 49.8% leased to 11 tenants Office: 15.5% leased to 14 tenants Girard Ave 31,500 SF (225 x140 ) 7435 Fay Ave 7,000 SF (50 x140 ) 38,500 SF (0.88 AC) Assessor s Parcel Number: Girard Ave , , Fay Ave Age / Renovated: Zoning: F.A.R.: Parking: / Renovated 2011 (2nd floor office) Girard Ave LJPD-1, La Jolla Planned District Ordinance 7435 Fay Ave RM-1-1, City of San Diego (Parking Lot) 1.3 (office/retail/residential mixed use) 1.7 (residential/retail mixed use) Existing Spaces Parking Lot Fay Ave 24 Parking Lot - behind Girard Ave 7 Parking Lot - behind 7466 Girard Ave 17 Total: 48 spaces Offering Price: $10,000,000 Note: Property is being sold on the as-is, where-is condition of the Property. Qualified prospective investors will have the opportunity to inspect the Property. Each prospective investor is to rely solely upon its own independent investigation, evaluation, and judgment as to the condition of the Property. The Owner reserves the right to sell or withdraw the Property at any time without prior notice. 2

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6 Executive Summary Project Highlights Immediate Upside Potential The Project represents one of the few true value-add acquisition opportunities available for purchase in the La Jolla Village market. Currently 65.3% leased, most tenants are on short term leases which allow the investor to renegotiate and extend the current leases to reposition the asset. Investors can achieve significant NOI growth and value appreciation by embarking on an aggressive leasing campaign and repositioning and/or redevelopment to a larger retail/ residential mixed use project. The Project is ideally positioned to service both residents and visitors in the affluent seaside resort La Jolla Village community and take advantage of declining inventory in meeting the heavy demand of smaller retail, residential and office users in this market. Significant Barriers to Entry The La Jolla Village commercial real estate market has significant barriers to entry due to the limited sites available for future development and there are currently no new speculative projects under construction. Due to the scarcity of commercially zoned land for development, its coastal orientation, and current zoning guidelines, these barriers to entry are heightened in La Jolla Village. With a lack of available land allocated for future mixed use development, and increasing demand by smaller professional office users, retailers, and residents, future mixed-use development for upscale retail, office and residential uses is highly encouraged in this area. The Project offers a prospective buyer a multi-dimensional repositioning opportunity with numerous options. These include: redevelopment of the existing structure to enhance its appeal with increased rents; or, possibly entitling the site for redevelopment to a higher density retail/residential mixed use project with subterranean parking. Current zoning for this Girard Ave. site allows an F.A.R. of 1.3 (office/retail/residential mixed use), or 1.7 (retail/residential mixed use). According to current development guidelines, the Girard Ave. retail/residential property may accommodate a maximum size project of approximately 53,000 square feet respective of setback, height, and parking requirements subject to approval of the City of San Diego and the La Jolla Planned District Ordinance ( LJPDO ). Strategic La Jolla Village Location The Project s location offers easy access to residents and visitors alike, near the busy intersection of Girard Avenue and Pearl Street. The Project is located just two blocks south of the Torrey Pines Road/Girard Avenue intersection, offering exceptional ingress and egress to La Jolla Village. Girard Avenue is La Jolla s major commercial street serving residents, visitors and local businesses. Nearby businesses include popular outdoor cafes, upscale salons, boutiques, galleries, showrooms, and professional and medical offices. In addition, there are numerous luxury residential condominium projects, single family homes and upscale apartment projects located within close walking distance to the Project, providing a valuable and continuous source of affluent customers for Girard Avenue s unique retailers and businesses. The Shops & Offices at La Jolla Village 4

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