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615

CIVIC CENTER

SANTA ANA, CALIFORNIA

OFFICE BUILDING FOR SALE OR FOR LEASE

4 STORY BUILDING | 53 SUBTERRANEAN PARKING SPACES | ACROSS FROM COURT HOUSE

$176 Per Sq Ft SALE PRICE


CONFIDENTIALITY DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Shaw Equity Inc. and Darvishian Investment Group and should not be made available to any other person or entity without the written consent of Darvishian Investment Group. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Shaw Equity Inc. and Darvishian Investment Group has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NON-ENDORSEMENT NOTICE Shaw Equity Inc. and Darvishian Investment Group is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Darvishian Investment Group, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Darvishian Investment Group, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. By accepting this Marketing Brochure you agree to release Shaw Equity Inc. and Darvishian Investment Group Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.

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615 W CIVIC CENTER DRIVE


TABLE OF CONTENTS

02

CO N F I D E N T I AL I TY D I S CL AI M E R

06

I N V E ST M E N T H I G H L I G HTS

10

RENT ROLL

12

LEASE TERMS

22

DEMOGRAPHICS

04

I N V E ST M E N T OV E RV I EW

08

TENANT OVERVIEW

14

FINANCIAL OVERVIEW

20

AR E A H I G H L I G H T S


INVESTMENT OVERVIEW Across from Court House

W Civ

ic Cen

ter Dr

ive

615 W. Civic Center

THE SUPERIOR COURT OF CALIFORNIA COUNTY OF ORANGE The Superior Court of California, County of Orange serves a growing population of 3.2 million and handles an average of 516,000 filings each year.

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615 W CIVIC CENTER DRIVE


PROPERTY OVERVIEW LOCATION Address

615 W Civic Center Dr.

City, State, Zip

Santa Ana, CA 92701

County

Orange County

Sub Market

Civic Center

INVESTMENT

Price $4,299,000 CAP Rate*

7.00%

Occupancy 53% Price Per Sq Ft

$176

Net Operating Income*

$300,961

*Pro-forma based on 100% occupancy

BUILDING

Year Built/Renovated

1966 / 2018

Building Size

24,363 appx sf

No. of Stories

4

Parking

53 Subterranean

LAND

Lot Size

14,923 appx sf

Assessor’s Parcel Number Zoning

53 Subterranean Parking Spaces

005-143-32

Professional (P) - City of Santa Ana CLICK HERE FOR ZONE INFO

FOR SALE OR LEASE

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INVESTMENT HIGHLIGHTS

Secure Gated Parking

ADA handicap Ramp

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615 W CIVIC CENTER DRIVE


INVESTMENT SUMMARY LOCATION HIGHLIGHTS

TENANT IMPROVEMENTS

• Located in the heart of Downtown Santa Ana

• 3rd Floor was renovated in 2018

• Sits at the corner of West Civic Center Drive and Parton Street-Directly across the Orange County Superior Court

• Renovations include new carpet, new ceilings and new fixtures

• Heavy government tenant mix surrounding building including- Federal Courthouse, FBI, Orange County District Attorney’s Office, Internal Revenue Service, U.S. Citizenship and Immigration Office, Orange County Sheriff’s Department, Employment Development Department (EDD), California Franchise Tax Board, City of Santa Ana Civic Center

• Bright and light with freshly painted

• Corner Location with Extremely High Visibility from Orange County Courthouse for Great Signage

• Secure gated subterranean parking

• On-Site Parking-Rare subterranean gate guarded parking with 53 spaces, 27 designated for the 3rd floor • Bus Stop directly across the street • Excellent location for law firms, government tenants and non-profit organizations with On-site parking INVESTMENT HIGHLIGHTS • 7.00% CAP rate at 95% occupancy

• 15 Thermostats for zoned temperature control • Upgraded kitchen area on 3rd Floor • Elevator • Beautiful private courtyard located on second floor • Private balconies throughout suites • Secured gate guarded parking on 1st floor and subterranean level • High Ceilings throughout the entire office common areas, lobby and suites • 2nd floor Suites have built-in tenant improvements including wood floors, private offices, lobbies and reception areas

• Priced well below replacement cost at $176 PSF

• Open common area lobby on each floor including 1st, 2nd and 3rd floors

• Excellent cash flow opportunity with potential above market returns

• ADA handicap accessible entrance ramp

• $235,885 in annual incoming rent from one tenant occupying entire 2nd floor (Telecare) FOR SALE OR LEASE

7


TENANT OVERVIEW

Background

Telecare Corporation is one of the nation’s largest providers of services and supports to individuals with serious mental illness (SMI). Telecare specializes in serving individuals with complex needs, including co-occurring issues, including: substance abuse issues, chronic health conditions, criminal justice system involvement, homelessness, intellectual disabilities, and complications associated with aging.

Clients

Website telecarecorp.com Ownership Private Corporate Headquarters Alameda, CA Years in Business 50 Years Programs 90 States Operated 8 States Employees 3,106 Patients Served Annually 34,146

[1]

[1] 2014

Based in Alameda, California, Telecare is an employee and family-owned organization with more than 80 programs and 2,600 employees in: California, Nebraska, North Carolina, Oregon, Pennsylvania, Texas, Washington. Telecare was founded in 1965 by three individuals who were committed to the rehabilitation of people with serious mental illness: Art Gladman, a psychiatrist; Lida Hahn, a psychiatric nurse; and Morton Bakar, a businessman. Telecare’s licensed staff includes psychiatrists, social workers (MSW), and nurses (RN/LVN). In 2012-2013, Telecare provided more than $100,000 in scholarship and education funds to it’s staff, with more than 77 employees promoted internally. Telecare’s clients are typically adults (18-55), older adults (65+) and younger individuals (12-17) with complex mental illness. In 2012-2013, Telecare served more than 29,000 individuals. Telecare programs primarily serve adults with serious mental illness, but many programs are also tailored to serve a variety of specialized patient populations with mental illness, including: ▪ Persons with co-occurring substance abuse issues.

“Telecare’s purpose, in every one of our programs, is to help people with serious mental illness to feel stronger, better, healthier, and more hopeful, not only with their mental illness, but in their lives.” “Treatment is not the goal of the program. Instead the goal is for each person to gain information that is pertinent for them, which will lead them to make more effective choices” and result in better outcomes for their lives.”

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▪ Youth at risk aged 16 -25 at risk of psychosis ▪ Aging and older persons who require enhanced coordination of mental and physical healthcare. ▪ Criminal justice system clients, including parolees requiring mental health supervision, individuals convicted of crimes based on an insanity defense, or others with a “history” in the criminal justice system. ▪ Persons experiencing homelessness helping them to obtain and maintain housing. ▪ Individuals with intellectual disabilities who benefit from care provided in residential programs rather than institutional settings.


SECOND FLOOR FLOOR PLAN

1st Floor Entrance Lobby

FOR SALE OR LEASE

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RENT ROLL

SECOND FLOOR

Suite Number

Tenant Name

1st Floor Lobby 200

Rentable Sq. Feet

% of Bldg

Commencement

Expiration

Monthly Rent

52%

8/1/2017

7/31/2018

$ 19,657.10

8/1/2018

7/31/2019

$ 20,164.38

8/1/2019

7/31/2020

$ 20,798.48

8/1/2020

7/31/2021

$ 21,432.58

8/1/2021

7/31/2022

$ 22,075.56

8/1/2022

7/31/2023

$ 22,737.82

8/1/2023

7/31/2024

$ 23,419.86

Per Sq. Foot

477 Telecare Corporation, Inc.

12,682

Rent Increases

THIRD FLOOR

$ 235,885

Option Periods

Total Rent Second Floor

$ 235,885

300A/300B [executive suites]

Vacant

6,955

29.1%

302

Vacant

150

0.6%

305

Law Offices of Donald B Serafano PC

1,306

5.46%

315

Miller & Axline Corp.

643

3.0%

350

Vacant

2,150

9.0%

$ 20,376

3RD Floor Total

11,204

47.16%

$ 20,376

Grand Total

24,363

5/1/2015

MTM

900.00

$ 10,800

MTM

752.00

$ 9,024

Telecare Corporation, Inc. pays for 2nd floor courtyard space which is not considered rentable square footage for third floor tenants in this analysis.

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Annual Rent

615 W CIVIC CENTER DRIVE

$ 256,261


FOR SALE OR LEASE

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LEASE ABSTRACT 2nd Floor Tenant: Square Feet: Rent Commencement Date: Term: Initial Term Expiration:

Telecare Corporation 12,682 8/1/2016 5 Years 7/31/2021

Renewal Options:

One (1) Option to Extend the Term for an additional Three (3) Years

Monthly Rent/Yr:

8/1/2017 - 7/31/2018: 8/1/2018 - 7/31/2019: 8/1/2019 - 7/31/2020: 8/1/2020 - 7/31/2021: Option Period 8/1/2021 - 7/31/2022: 8/1/2022 - 7/31/2023: 8/1/2023 - 7/31/2024:

Permitted Use:

$19,657.10 $20,164.38 $20,798.48 $21,432.58 $22,075.56 $23,737.82 $23,419.96

Adult Mental Health Services

Insurance:

a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee’s personal property, Trade Fixtures, and Lessee Owner Alterations and Utility installations. Such Insurance shall be full replacement cost coverage with a deductible of not to exceed $10,000 per occurrence. The proceeds from any such Insurance shall be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility installations. Lessee shall provide Lessor with written evidence that such Insurance Is In force. b) Worker’s Compensation Insurance. Lessee shall obtain and maintain Worker’s Compensation Insurance In such amount as may be required by Applicable Requirements. Such policy shall Include a ‘Waiver of Subrogation’ endorsement. Lessee shall provide Lessor with a copy of such endorsement along with the certificate of Insurance or copy of the policy required by paragraph 8.5. c) Business Interruption. Lessee shall obtain and maintain loss of Income and extra expense Insurance in amounts as will reimburse Lessee for direct or indirect loss or earnings attributable to all perils commonly Insured against by prudent lessees In the business of Lessee or attributable to prevention of access to the Premises as a result of such perils. d) No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of Insurance specified herein are adequate to cover Lessee’s property, business operations obligations under this Lease.

COMMON AREA EXPENSES:

Lessee shall pay to Lessor during the term hereof, In addition to the Base Rent, Lessee’s share of the amount of which all Operating Expenses for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the “Operating Expenses for the Base Year”, such excess being hereinafter referred to as the “Operating Expense Increase”. “...excluding that portion of property taxes attributed to the reappraisal of the property arising from either the sale or transfer of the property or a change in the capital improvements thereon.”

Utilities/Janitorial:

Lessor to provide to Lessee

Early Termination:

At any time following the 36th month of the initial term, Lessee shall have the right to terminate the Lease (“Early Termination”) if the contract with the County of Orange is terminated, expires or is not renewed. Lessee shall notify Lessor of its intent to terminate 3 months prior to the planned termination date. If Lessee exercises its Early Termination Right, Lessee shall pay to Lessor as a penalty in the amount of all unamortized leasing commissions and Tenant Improvement cost plus a fee equal to 3 month’s Base Rent if terminated in months 36 thru 48 of the Lease Term or a fee equal to 2 month’s Base Rent if terminated in months 49 thru 60.

Repairs& Maintenance:

Lessee shall, at all times during the term of this Lease, and at its sole cost and expense, keep and maintain or cause to be kept and maintained in first-class repair and condition (ordinary wear and tear and casualty damage excepted), the Leased Premises and Improvements and shall use all necessary precaution to prevent waste, damage or injury. Lessee shall make all repairs necessary to the Leased Premises and Improvements whether interior or exterior, structural or nonstructural, ordinary or extraordinary, foreseen or unforeseen. Lessor shall not be required to furnish any services or facilities or to make any improvements, repairs or alterations in or to the Leased Premises during the term of this Lease.

FOR SALE OR LEASE

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THIRD FLOOR FOR LEASE

THIRD FLOOR OFFICE SPACE Suite 300A/300B

Rentable Rent per SF SF

Monthly Rent

6,955

$1.50

$10,432

150

$1.50

$ 225

305

1,092

$1.50

$ 1,959

643

$1.50

$ 965

350

2,150

$1.50

$ 3,225

11,204

$1.50

$16,806

302 315

Total 3rd Floor

LEASE RATE: ................................$1.50 per sf RENTABLE SPACE: .....................11,204 appx sf LEASE TYPE: ................................ Full Service Gross LEASE TERM: ...............................Negotiable DATE AVAILABLE: ......................Immediate

TENANT IMPROVEMENTS • 3rd Floor renovated in 2018 • New carpet, ceilings and fixtures • Bright and light with fresh paint • 15 Thermostats • Upgraded kitchen area • Elevator • Secure gated subterranean parking

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615 W CIVIC CENTER DRIVE


THIRD FLOOR FLOOR PLAN SUITE 350 2ND FLOOR COURT YARD

SUITE 315 SUITE 305

TAKE A VIRTUAL TOUR For a 3D interactive tour of the Office Space for Lease CLICK THE 3D VIRTUAL TOUR above or go to our website at

STE 302

SUITE 300 A

W CIVIC CENTER DRIVE

SUITE 300 B

darvishiangroup.com

1st Floor Entrance Lobby

N PARTON STREET Suite 300 is currently one unit but can be subdivided. Common area is in white. Court yard is only accessible to the 2nd floor tenants and is included in the 2nd floor square footage.

FOR SALE OR LEASE

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FINANCIAL OVERVIEW

3RD FLOOR KITCHEN

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615 W CIVIC CENTER DRIVE


CASH FLOW ANALYSIS

FISCAL YEAR 2018 2019 Overall Economic Occupancy 52% 100% Potential Gross Revenue Square Feet 1st Floor Lobby 477 $8,586 $8,586 $0.35 2nd Floor - Telecare 12,682 $241,973 $249,582 $10.25 3rd Floor- 11,204 $201,672 $201,672 $8.28 Scheduled Base Rental Revenue $452,231 $452,231 $18.58 Vacancy [Current 48% 2019 to 95%] 48% $210,258 $22,612 $0.93 Effective Gross Income $241,973 $429,619 $17.65 Operating Expenses Real Estate Taxes $2.06 $50,178 $51,181 $2.10 Special Assessments $0.12 $3,030 $3,091 $0.13 Reserves $0.16 $4,000 $4,080 $0.17 Management [4.00% of EGI] $0.40 $9,679 $17,185 $0.71 Insurance $0.15 $3,622 $3,622 $0.15 CAM $0.00 Janitorial $0.25 $6,000 $6,000 $0.25 Electricity $0.93 $22,650 $29,000 $1.19 Supplies $0.07 $1,800 $1,800 $0.07 Trash $0.07 $1,659 $1,659 $0.07 HVAC Maintenance $0.08 $2,000 $2,000 $0.08 Elevator Service $0.08 $2,000 $2,000 $0.08 Water $0.08 $2,000 $2,040 $0.08 Repairs & Maintenance $0.21 $5,000 $5,000 $0.21 Total Expenses $4.67 $113,618 $128,658 $5.29 FY 2019 Revenues $/SF/MO Effective Gross Income $9.94 $241,973 $429,619 $17.65 Total Expenses $4.67 $113,618 $128,658 $5.29 NET OPERATING INCOME $5.27 $128,355 $300,961 $12.36 ACQUISITION & RESIDUAL SALE Purchase Price $(4,299,000) $5,472,022 Net Residual Value [1] 0 CASH FLOW BEFORE DEBT $(4,299,000) $128,355 $300,961 $5,772,983 NOI Return 2.99% 7.00% 5.50% [1] Net Residual Value is calculated by dividing NOI by the Residual Cap Rate of 5.50%.

FOR SALE OR LEASE

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3RD FLOOR SUITE 300

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3RD FLOOR SUITE 350

FOR SALE OR LEASE

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SUBTERRANEAN GATED PARKING

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3RD FLOOR VIEW OF COURTYARD

FOR SALE OR LEASE

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N ROSS ST

N PARTON ST

AREA HIGHLIGHTS

W CIVIC CENTER DR N FLOWER ST

Santa Ana Police Dept.

Orange County Traffic Ticket

Orange County Walk of Honor

Santa Ana Jail

City Hall of Santa Ana Women’s Central Jail

Men’s Central Jail

Orange County Sheriff’s Department

Orange County Superior Court Civil Complex Center US Citizenship and Immigration

Orange County Coroner W SANTA ANA BLVD

EDD Disability Insurance Office

Orange County Crime Lab Orange County Planning Info Orange County Public Works

615 W CIVIC CENTER DRIVE

California Franchise Tax Board

N ROSS ST

Intake Release Center

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Santa Ana Public Library

Superior Court of Orange County

Old Orange County Courthouse

W SANTA ANA BLVD

Ronald Reagan Federal Building OC STREETCAR APPROVED ROUTE

MAIN ST

N SYCAMORE ST

N BROADWAY

US Internal Revenue Service


DOWNTOWN SANTA ANA • Surrounded by many Government buildings • Close to a wide variety of restaurants

Close to some of OC’s Best Restaurant** ​From eclectic ethnic eats to elevated dining, DTSA is OC’s favorite food neighborhood. Check out www.EatDTSA.com for a guide to downtown’s favorite food establishments.

• Bus stop across the street • Less than half of a mile to Santa Ana Commuter Rail • Close to approved OC StreetCar route www.octa.net • 9 mi to John Wayne Airport • 21.6 mi to Long Beach-Daughtery Field Airport • 41 min to Ontario International Airport • Walking Score of 80 (very good)* • Transit score of 53 (Good transit)

© Darvishian Group 2018. Information deemed reliable but not guaranteed. *This information is being provided by CoStar.com. ** This information is being provided by www.eatdtsa.com

FOR SALE OR LEASE

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SANTA ANA DEMOGRAPHICS Santa Ana is the county seat and second most populous city in Orange County, California. The United States Census Bureau estimated its 2011 population at 329,427, making Santa Ana the 57th mostpopulous city in the United States. Santa Ana is also the 4th highest density in the nation per square mile. CORPORATE HEADQUARTERS

Santa Ana is the corporate headquarters of several companies including Behr Paint, CoreLogic, Corinthian Colleges, First American Corporation, Greenwood & Hall, Ingram Micro, The Orange County Register, SchoolsFirst Federal Credit Union, STEC, TTM Technologies, beverage company Kern’s, and Wahoo’s Fish Taco. It also houses major regional headquarters for the Xerox corporation, Ultimate Software, and T-Mobile. Nonprofits based in Santa Ana include Open Doors. ECONOMY

www.downtown-santaana.com

Santa Ana is part of a metropolitan area which includes Los Angeles and Long Beach. When it comes to gross metropolitan product of U.S. metro areas, Los Angeles-Long Beach-Santa Ana, CA is ranked number two in 2013 with a GMP of $792.2 billion. When gross domestic product (GDP) and gross metropolitan product (GMP) for country or metro area were compared, Los Angeles-Long Beach-Santa Ana, CA ranked number 20 for their 2013 numbers. The ranking for Santa Ana was higher than both Saudi Arabia and Switzerland, which ranked 21 and 22 respectively. The estimated annual growth rate of United States metro area economies from 2013-2020 is 2.9 percent with $686.5 billion in 2013 and an estimated $838.2 billion in 2020.

DEMOGRAPHICS DEMOGRAPHICS 1 MILE

3 MILE

5 MILE

POPULATION 2016

62,959

356,593

707,347

POPULATION 2021

65,444

370,367

736,042

MEDIAN HOUSEHOLD INCOME $39,344

$53,396

$60,351

POPULATION GROWTH

3.95%

3.86%

4.06%

MEDIAN HOME VALUE

$384,296

$377,058

$451,360

AVG HOUSEHOLD SIZE

4.20

4.00

3.60

© Darvishian Group 2018. Information deemed reliable but not guaranteed. *This information is being provided by www.downtown-santaana.com.

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POPULATION

MEDIAN HH INCOME

POPULATION GROWTH

356,593

$53,396

3.86%

3 MILE RADIUS

3 MILE RADIUS

3 MILE RADIUS

FOR SALE OR LEASE

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FOR MORE INFORMATION CONTACT: DARVISHIAN GROUP CA BRE Broker #01915377 www.darvishiangroup.com 600 Anton Boulevard, 11th Floor Costa Mesa, CA 92626

W Civ

ic Cen

Pasha Darvishian Managing Partner CalBRE #01397162 Pasha@darvishiangroup.com 949.396.1075 Direct

Jon Hauso Vice President Investments CalBRE # 02003482 Jon@darvishiangroup.com 949.396.1028

ter Dr

ive

Subject Property

615 W Civic Center Dr | Santa Ana, CA 92701

615 W Civic Center 2018  
615 W Civic Center 2018