FOR SALE LEASEHOLD INTEREST STANFORD WHOLESALE MART LOS ANGELES FASHION DISTRICT 807 East 12th Street
For more information please contact: Laurie Lustig-Bower Executive Vice President +1 310 550 2556 Laurie.Lustig-Bower@cbre.com www.cbre.com/laurie.lustig-bower Lic. 00979360 Brandon Burns Senior Vice President +1 213 613 3753 brandon.burns@cbre.com www.cbre.com/brandon.burns Lic. 01194796 Kamran Paydar Senior Sales Director +1 310 550 2529 kamran.paydar@cbre.com www.cbre.com/kamran.paydar Lic. 01242590 FOR SALE LEASEHOLD INTEREST STANFORD WHOLESALE MART LOS ANGELES FASHION DISTRICT 807 East 12th Street Los Angeles, California 90021 OFFER DUE DATE: Friday, April 22, 2016 by 5PM for more information, please visit www.stanfordmart.net
P 3 WHOLESALE FASHION DISTRICT EAST 15TH STREET EAST 14TH STREET STANFORD WHOLESALE MART EAST 12TH STREET DOWNTOWN LOS ANGELES STANFORD AVENUE EAST 10TH STREET EAST OLYMPIC BOULEVARD SOUTH CENTRAL AVENUE EAST 8TH STREET THE MARKET 807 East 12th Street Los Angeles Fashion District
STANFORD WHOLESALE MART 12 TH ST RE ET UE R FO N STA VEN DA
STANFORD AVENUE STANFORD WHOLESALE MART TOWNE AVENUE CROCKER STREET 12TH STREET
CONTENTS for more information, please visit www.stanfordmart.net EXECUTIVE SUMMARY P07 THE PROPERTY P13 THE MARKET P20
EXECUTIVE SUMMARY Stanford Wholesale Mart
P 8 CBRE, Inc., as exclusive agent, is pleased to present the opportunity to acquire a leasehold interest in Stanford Wholesale Mart, the premier fashion wholesaler showroom property located in the thriving Fashion District of Downtown Los Angeles. Stanford Wholesale Mart is a one-of-a-kind opportunity to purchase a 97.5% occupied income property located in the heart of the Wholesale Fashion District. Multiple tenants within the Property have annual sales that exceed $100 million. AN OPPORTUNITY IN THE HEART OF THE LOS ANGELES FASHION INDUSTRY The Fashion Industry generates over $46 billion in revenue in Southern California with sales and marketing largely centered in Downtown Los Angeles. Located at 807 East 12th Street, Stanford Wholesale Mart is at the epicenter of it all. The three city blocks, at the intersections of 12th Street, Towne Avenue and Crocker Street are considered the heart of the Wholesale Fashion District. These few blocks alone - immediately surrounding and adjacent to Stanford Wholesale Mart - generate an estimated $4 billion to $6 billion of revenue. Multiple tenants with showrooms at these pivotal corners can individually generate sales of over $100 million, and the rental rates reflect the critical nature of these storefronts. The Stanford Wholesale Mart has frontage on Stanford Avenue, 12th Street, and Towne Avenue with walkable alleys connecting to the LA Fashion Mart and other adjacent storefronts. Stanford Wholesale Mart is a key asset in one of the most powerful, vibrant and influential wholesale apparel markets in the world. It s advanced architectural and structural design is tailored for a garment wholesaler and includes 18 foot ceilings, private restrooms and open-air design. Stanford Wholesale Mart is the largest openair facility in the area. EXECUTIVE SUMMARY 807 East 12th Street Los Angeles Fashion District
P 9 Iconic, landmark property located in the heart of the wholesale fashion district. Premiere location within the $46 billion Southern California fashion industry. EXECUTIVE SUMMARY OPPORTUNITY HIGHLIGHTS Most ground floor tenants exceed $20 million in annual sales. Established showroom tenants with long tenure. Competitive leasing advantage with amenities and tenant-oriented services. Upside potential: In-place rents are under market. 8 0 7 E a s t 1 2 t h S t r e e t L o s A n g e l e s Fa s h i o n D i s t r i c t Occupancy has remained at 97% or better since completion of construction in 2008.
P 10 Frontage on Stanford Avenue, 12th Street, and Towne Avenue. Alleys, Walkability and Connectivity to Key Adjacent Projects. EXECUTIVE SUMMARY OPPORTUNITY HIGHLIGHTS Continued New Investment in the Area. $18 Billion $4-$6 Billion $100 Million + Annual Revenues, Estimated Wholesale Fashion Individual annual sales of multiple Downtown Los Angeles Revenues in area immediately Stanford Wholesale Mart tenants. Fashion District. surrounding Stanford Wholesale Mart. 8 0 7 E a s t 1 2 t h S t r e e t L o s A n g e l e s Fa s h i o n D i s t r i c t L.A. Fashion Mart (located across the street at 800 E. 12th Street) recently sold for $135 million.
THE DOWNTOWN LOS ANGELES WHOLESALE FASHION DISTRICT Crocker Street Towne Avenue Stanford Avenue East 12th Street PRICE: The Property is being marketed unpriced OFFER DUE DATE: Friday, April 22, 2016 by 5PM for more information, please visit www.stanfordmart.net
STANFORD WHOLESALE MART INTERIOR COURTYARD VIEW
THE PROPERTY Stanford Wholesale Mart
P 14 THE PROPERTY 807 East 12th Street Los Angeles Fashion District
P 15 PROPERTY DETAILS Property Address Land Size Building Size Parking Floors Frontage 812 East 12th Street Los Angeles, CA 90021 The existing improvements are built on a ground leased parcel (APN 5132-009-013) that encompasses 43,197 SF or 0.99 acres. 87,696 net SF 225 parking spaces (2.6 spaces per 1,000) Parking is provided on the third and fourth levels of the building. There are a total of 225 parking spaces, equating to a parking ratio of 2.6 spaces per 1,000 square feet of net rentable area. Stanford Mart is a four-story showroom wholesale building. 238' 12th Street 166' Towne Avenue 157' Stanford Avenue Tenant Spaces 101 Occupancy 97.5% Year Built Built in 2008 Current Use Zoning Offering for more information, please visit www.stanfordmart.net Wholesale Showroom Retail M2-2D (Light Industrial) City of Los Angeles Leasehold Interest THE PROPERTY 807 East 12th Street Los Angeles Fashion District
STANFORD WHOLESALE MART
P 17 PROPERTY DETAILS Construction Type Floor Covering Roof Interior Finish Ceiling Lighting HVAC Elevators Restrooms Fire Sprinklers Steel reinforced concrete Mix of carpet, marble, ceramic tile and hardwood Multi-ply composition roof with gravel covering. Drywall and paint Most of the showroom units and retail spaces have either exposed concrete or soffit drywall ceilings. A mix of ceiling mounted and fluorescent light fixtures as well as can lights and track lights. Central heating, cooling and ventilation systems The building is served by two passenger/freight elevators. One of the elevators serves all four floors while the other serves up to the third floor. Each unit has its own restroom and there are common area restrooms located on the second floor to serve the retail spaces. The entire building has fire sprinkler protection. THE PROPERTY 807 East 12th Street Los Angeles Fashion District
STANFORD WHOLESALE MART
P 19 GROUND LEASE SUMMARY Lessee Lease Type Rental Rate Basis Leased Gross Site Area Stanford Mart LP Ground Lease $232,176 per month with annual CPI increases Triple Net (Tenant responsible for insurance, real estate taxes, CAM charges) 64,068 square feet (Includes land underlying Stanford Mart Phase II) Ground Lease Commencement November 8, 2005 Ground Lease Expiration May 7, 2039 Options One, 25 year option Ground lease documents can be viewed at www.stanfordmart.net. THE PROPERTY 807 East 12th Street Los Angeles Fashion District
P 20 STANFORD MART 2 SUBLEASE SUMMARY Stanford Mart 2 is a sublease tenant located across the street from Stanford Wholesale Mart at 901 East 12th Street. The developer of Stanford Mart 2 is a subtenant of Stanford Mart LP and accounts for approximately $622,000 of the annual net opperating income. Currently under construction with an estimated Q4 2016 completion date, Stanford Mart 2 will have 44 tenants, is a nearly-identical development to the Stanford Wholesale Mart, and is an indication of the area s economic vitality and robust tenant demand. Lessor Sublease rental rate Basis Land size Stanford Mart LP $51,800 per month NNN with annual CPI increases Triple Net (Sub-Tenant responsible for insurance, real estate taxes, CAM charges) 21,000 SF or 0.48 Acres Sublease commencement August 2013 Sublease rent commencement June 2014 Sublease expiration May 7, 2039. Term is concurrent with master ground lease The Stanford Mart 2 sublease can be viewed at www.stanfordmart.net STANFORD WHOLESALE MART 12TH STREET STANFORD AVENUESTANFORD MART 2 THE PROPERTY 807 East 12th Street Los Angeles Fashion District
WHOLESALE FASHION MARKET Stanford Wholesale Mart
P 22 FASHION DISTRICT OVERVIEW The Los Angeles Fashion District is considered to be the engine of the local apparel industry, accounting for approximately $18 billion dollars of the $46 billion that is generated by the industry in Southern California. It is a major economic contributor to the region, and also feeds the manufacturing and the warehouse/distribution industries. The Fashion Industry comprised of apparel, textile and wholesalers (importers) - is a major Los Angeles County employer. For over a century, the Fashion District has been the epicenter of the garment and apparel industry. The ±100 block area features showrooms, offices, design centers, wholesale and retail businesses for apparel, accessories, footwear, dresses, textiles and more. Although the business model for the industry has changed over the years, the Fashion Mart continues to be the hub for the Los Angeles fashion industry. The urbanization and evolving landscape in and around the Fashion Mart will only fortify its presence as the pivotal point of the Southern California fashion industry. THE FASHION INDUSTRY IS BIG BUSINESS IN LOS ANGELES COUNTY. THE MARKET 807 East 12th Street Los Angeles Fashion District
P 23 FASHION DISTRICT OVERVIEW STANFORD WHOLESALE MART IS LOCATED ON THE RODEO DRIVE OF THE FASHION DISTRICT The Los Angeles Fashion District is the largest fashion hub in the United States and Los Angeles boasts more fashion jobs than any other city. THE FASHION DISTRICT BUSINESSES LOCATED IN THE SIX CITY BLOCKS IMMEDIATELY SURROUNDING, ADJACENT TO AND IN STANFORD WHOLESALE MART GENERATE AN ESTIMATED $4 BILLION TO $6 BILLION OF ANNUAL REVENUES. THE MARKET 807 East 12th Street Los Angeles Fashion District
CESAR E. CHAVEZ AVE. P 24 DOWNTOWN LOS ANGELES FIGUEROA AVE. VENICE BLVD. FLOWER ST. HOPE ST. PICO BLVD. GRAND AVE. OLIVE ST. HILL ST. 11TH ST. BROADWAY MAIN ST. OLYMPIC BLVD. 15TH ST. LOS ANGELES ST. MAPLE AVE. 9TH ST. 12TH ST. 8TH ST. SOUTH PARK 10 SAN PEDRO ST. 7TH ST. CENTRAL AVE. 6TH ST. WILSHIRE BLVD. 16TH ST. 5TH ST. 4TH ST. FINANCIAL DISTRICT FASHION DISTRICT 3RD ST. 110 2ND ST. JEWELRY DISTRICT GALLERY ROW 1ST STREET. TEMPLE ST. SPRING ST. MAIN ST. CIVIC CENTER BUNKER HILL TOY DISTRICT OLYMPIC BLVD. 7TH ST. BARLETT ST. ALPINE ST. CHINATOWN LITTLE TOKYO COLLEGE ST. EL PUEBLO 2ND ST. 4TH PL. 1ST ST. ARTS DISTRICT 6TH ST. MATEO ST. SANTA FE AVE. YALE ST. 101 HILL ST. BROADWAY SPRING ST. MAIN ST. MOULTON AVE. AVE. 20 THE MARKET 807 East 12th Street Los Angeles Fashion District ALAMEDA ST.
P 12 25 ACCESSOrIES ATHLETIC WEAr MEN S WEAr TEXTILES WOmENS WEAR WOmEN S WEAR MEN S CASUALS FLOWErS KIDS WEAr STANFORD WHOLESALE MART WOmEN S WEAR THE the MARKET market 807 807 East e ast 12th 12th Street Street Los Los Angeles a ngeles Fashion Fashion District District
STANFORD WHOLESALE MART VIEW TO NORTH STANFORD WHOLESALE MART 12TH STREET STANFORD AVENUE
STANFORD WHOLESALE MART VIEW TO SOUTH-EAST 12TH STREET STANFORD WHOLESALE MART STANFORD AVENUE TOWNE AVENUE CROCKER STREET
For more information please contact: Laurie Lustig-Bower Executive Vice President +1 310 550 2556 Laurie.Lustig-Bower@cbre.com www.cbre.com/laurie.lustig-bower Lic. 00979360 Brandon Burns Senior Vice President +1 213 613 3753 brandon.burns@cbre.com www.cbre.com/brandon.burns Lic. 01194796 Kamran Paydar Senior Sales Director +1 310 550 2529 kamran.paydar@cbre.com www.cbre.com/kamran.paydar Lic. 01242590 FOR SALE LEASEHOLD INTEREST STANFORD WHOLESALE MART LOS ANGELES FASHION DISTRICT 807 East 12th Street OFFER DUE DATE: Friday, April 22, 2016 by 5PM for more information, please visit www.stanfordmart.net 2016 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. StanfordWholesaleMart-807East12thStreet-LL-Bower-Brochure-v06LZ