STRONG INVESTMENT FUNDAMENTALS
7.82% Cap Rate on Actual Income and 9.50% by 2030
Diverse Income Stream – Income is spread across 33 tenants, with no individual tenant accounting for more than 8% of total revenue.
Fully NNN-Leased Asset – Tenants proportionately reimburse all operating expenses, including all property taxes, insurance, and CAM, minimizing landlord exposure.
Smaller, Easier-to-Lease Suites – Majority of units range from 125 SF to 950 SF, appealing to small businesses and limiting exposure to high vacancy risk.
Dense, Affluent Trade Area — ±160,000 residents within a 3-mile radius and an average household income of ±$90,400 within 1 mile radius.
Service-Oriented Office Users—Not traditional office space – Small, private suites cater to service-based professionals seeking affordable workspace.
Recent Capital Improvements – Significant upgrades include new roofs, parking lot slurry seal/stripe, new HVAC, interior paint, new flooring, and full renovation of unit 225-10 (±3,500 SF).
Built-In Rent Growth – Leases include embedded CPI or 3% annual increases, offering a hedge against inflation.
Attractive Basis vs. Replacement Cost – Offered at $210/SF, significantly below new construction costs estimated at $300–$400/SF in Southern California.
___________________________________________________________________________________________________________
RESIDENTIAL MIXED-USE DEVELOPMENT OPPORTUNITY
Residential Mixed-Use Development Opportunity – Zoned Downtown Mixed-Use (DMUZ) within the Foothill Central Specific Plan, offering future residential mixed-use development upside.
Fully Leased at Below Replacement Cost, Ideal for Covered Land Play – 100% occupancy with short-term leases generates steady cash flow, creating a low-risk hold while securing permits and approvals for future redevelopment.