24 HOUR FITNESS | 303 3RD STREET | HUNTINGTON BEACH | CALIFORNIA
Confidentiality Agreement
The information contained in the following offering memorandum is
proprietary and strictly confidential. It is intended to be reviewed only
by the party receiving it from Marcus & Millichap and it should not
be made available to any other person or entity without the written
consent of Marcus & Millichap. By taking possession of and reviewing
the information contained herein the recipient agrees to hold and treat
all such information in the strictest confidence. The recipient further
agrees that recipient will not photocopy or duplicate any part of the
offering memorandum. If you have no interest in the subject property
at this time, please return this offering memorandum to Marcus &
Millichap.
This offering memorandum has been prepared to provide summary,
unverified financial and physical 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. Marcus & Millichap 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, PCBs or asbestos, the compliance
with local, 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
offering memorandum has been obtained from sources we believe to be
reliable; however, Marcus & Millichap has not verified, and will not verify,
any of the information contained herein, nor has Marcus & Millichap
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. Prospective buyers shall be responsible for their costs and
expenses of investigating the subject property.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT
ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP
AGENT FOR MORE DETAILS.
| TABLE OF CONTENTS |
4
22 28 32 40
PROPERTY
DESCRIPTION
PRICING &
FINANCIAL
MARKET
COMPARABLES
MARKET
OVERVIEW
DEMOGRAPHIC
ANALYSIS
Site Location
Financial Overview
Recent Sales Map
Orange County
Demographic Report
Investment Summary
Rent Roll
Recent Sales
Economy
Summary Report
Pacific Summary
Lease Summary
Employment
Average Household Income
Huntington Beach Pier, Huntington Beach, California
https://www.flickr.com/photos/capt_kirk/3510204346/
PROPERTY DESCRIPTION
SITE LOCATION
PROPERTY DESCRIPTION
PROPERTY HIGHLIGHTS
PROPERTY DESCRIPTION
COUNTY OVERVIEW
CITY OVERVIEW
LOCAL MAP
REGIONAL MAP
AERIAL
PARCEL MAP
PACIFIC CITY DEVELOPMENT LOCATION
PROJECT BACKGROUND
SITE LOCATION
La
Habra
Brea
Yorba Linda
Fullerton
Placentia
Buena
Park
Anaheim
Los
Alamitos
Seal
Beach
Villa k
Par
Stanton
Orange
Garden
Grove
Westm
in
ster
Huntingtion
Beach
Santa
Ana
Fountain
Valley
Costa
Mesa
Tustin
Orange County
Lake
Forest
Irvine
Mission
Viejo
Newport
Beach
Laguna
Hills
La
Be gun
ac a
h
Aliso
Viejo
Ranch
o
Marga Santa
rita
Cypress
Laguna
Niguel
Dana
Point
6
San Juan
Capistrano
San
Clemente
PROPERTY DESCRIPTION
PROPERTY DESCRIPTION
Tenant
Address
Lot Size
Gross Leasable Area (GLA)
Year Built
Parcel
Zoning
24 Hour Fitness
303 3rd Street,
Huntington Beach, CA 92648
.20 Acres
13,760 SF
1996
024-144-12
Commercial
CONSTRUCTION
Number of Stories
Type of Ownership
Landscaping
Topography
Foundation
Framing
Exterior
Parking Surface
Roof
2
Fee Simple
Palm Trees and Shrubs
Flat
Concrete
Wood
Stucco
Asphalt
Composite
MECHANICAL
Utilities
Gas, Electric and Water
INTERIOR DETAIL
Walls
Ceilings
Floor Coverings
Rest Rooms
Drywall
Acoustic Tiles
Carpet
Two Locker Rooms
7
P ROPERTY DESCRI PTI ON
PROPERTY HIGHLIGHTS
8

Downtown Huntington Beach, California

24 Hour Fitness Net Leased Investment

Below Market Rent of $2.00 per Square Foot

Lease Expires February 2017

No Options to Renew

Adjacent to Main Street and Pacific City

278,438 People in a Five Mile Radius

$106,417 Average Household Income in a
Five Mile Radius
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
INVESTMENT SUMMARY
M
The real estate is located in the epicenter of downtown Huntington
Beach, adjacent to Main Street and Pacific City, a new 31 acre mixed
use development project. Downtown Huntington or “Surf City” as it
is commonly known is home to the world famous Huntington Beach
Pier and a collection of eclectic restaurants, pubs and boutiques. The
foot and visitor traffic in the Main street corridor, rank it as one of the
most popular destinations in the world. Huntington Beach boasts
some of the best demographics retailers and investors look for when
determining site selection. This location has an average household
income of $106,417 in a five mile ring and population density of
278,438 people in a 5 mile radius.
PROPERTY DESCRIPTION
arcus and Millichap is pleased to present for sale the fee simple
interest in a 24 Hour Fitness property located in downtown
Huntington Beach, California. The real estate consists of 13,760
square feet of improvements sitting on a .20 acre parcel. The building
was constructed in 1996 as a build to suit for 24 Hour Fitness. The
property has two stories, with the majority of the space (63%) allocated
to the ground floor. The tenant has exercised their last option to renew
and the lease will expire in February of 2017. The current rent is $24
per square foot, significantly below the surrounding retail rents in the
Main Street corridor. The short term lease and below market rent will
provide the investor the flexibility to achieve higher returns in the very
near future.
This property will continue to flourish and benefit from the influx of
new development and increased density Pacific City provides and the
growing popularity of this trade area.
This real estate has never before been on the market, and it will give
the right investor a generational opportunity to invest in a rare beach
property not often offered for sale.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
9
COUNTY OVERVIEW - ORANGE COUNTY
A
P ROPERTY DESCRI PTI ON
s of the 2010 census, Orange County is the third-most populous county in
California, the second most densely populated county in the state, second
only to San Francisco County. The county’s three largest cities, Anaheim,
Santa Ana, and Irvine each have populations exceeding 200,000. It is mostly
suburban except for some traditionally urban areas at the centers of the older
cities of Anaheim, Fullerton, Huntington Beach, Orange and Santa Ana. There
are several edge city-style developments such as Irvine Business Center,
Newport Center and South Coast Metro. It is part of the Tech Coast.
Orange County is the headquarters of many Fortune 500 companies including
Ingram Micro and First American Corporation in Santa Ana, Broadcom in Irvine,
Western Digital in Lake Forest and Pacific Life in Newport Beach. Irvine is the
home of numerous start-up companies and also is the home of Fortune 1000
headquarters for Allergan, Edwards Lifesciences, Epicor, Standard Pacific
and Sun Healthcare Group. Other Fortune 1000 companies in Orange County
include Beckman Coulter in Brea, Quiksilver in Huntington Beach and Apria
Healthcare Group in Lake Forest. The county is famous for its tourism as the
home of attractions like Disneyland, Knott’s Berry Farm and several beaches
along its more than 40 miles of coastline. The area’s warm Mediterranean
climate and 42 miles of year-round beaches attract millions of tourists annually.
Huntington Beach is a hot spot for sunbathing and surfing; nicknamed “Surf
City, U.S.A.”, it is home to many surfing competitions. “The Wedge”, at the
tip of The Balboa Peninsula in Newport Beach, is one of the most famous
body surfing spots in the world. Historical points of interest include Mission
San Juan Capistrano, the renowned destination of migrating swallows. The
Richard Nixon Presidential Library and Museum is in Yorba Linda and the
Richard Nixon Birthplace home, located on the grounds of the Library, is a
National Historic Landmark. Other notable attractions include John Wayne’s
yacht, the Wild Goose in Newport Beach.
Orange County contains several notable shopping malls. Among these are
South Coast Plaza (the largest mall in California, and the third largest in the
United States) in Costa Mesa and Fashion Island in Newport Beach. Other
significant malls include the Brea Mall, Main Place Santa Ana, The Shops
at Mission Viejo, The Outlets at Orange, the Irvine Spectrum Center and
Downtown Disney.
10
Orange County has some of the most exclusive and expensive neighborhoods in
the U.S., many along the Orange Coast, and some in north Orange County. Orange
County has long been known as a Republican stronghold and has consistently
sent Republican representatives to the state and federal legislatures. The racial
makeup of Orange County was 1,830,758 (60.8%) White (44.0% non-Hispanic
white), 50,744 (1.7%) African American, 18,132 (0.6%) Native American, 537,804
(17.9%) Asian, 9,354 (0.3%) Pacific Islander, 435,641 (14.5%) from other races,
and 127,799 (4.2%) from two or more races. Hispanic or Latino of any race were
1,012,973 persons (33.7%).
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
CITY OVERVIEW - HUNTINGTON BEACH
untington Beach is a seaside city within Orange County in Southern
California. It is bordered by the Pacific Ocean on the west, and has
been long known for its long 8.5 miles of beautiful beach, mild climate,
and excellent surfing, earning it the nickname of Surf City. Surf, sand, sun
and subtle sophistication encapsulate what the City of Huntington Beach
is all about.
The California lifestyle is synonymous with Huntington Beach. Dean
Torrance, from the 1960’s pop group Jan and Dean, who co-authored the
famous number one hit “Surf City,” said that Huntington Beach embodies
the song’s spirit of freedom and California fun. The city is also mentioned
in the Beach Boys song “Surfin’ Safari” and in “Surfer Joe” by the Surfaris.
Ocean swells, endless sunshine and a fleet of bobbing longboards have
played an instrumental role in earning the city its well-deserved “Surf City”
nickname. Nothing epitomizes the California surf culture more than HB.
Boasting some of California’s widest, cleanest, and safest beaches, the
unofficial dress code has become a mix of wetsuits, bikinis and sandals
accessorized by volleyballs, surf boards and beach towels.
Named the “Best City to Live in Orange County” by the Orange County
Register readers, Huntington Beach offers residents a charming
community with ideal weather, a diversified economy overflowing with
good jobs, a wide variety of housing, an excellent educational system,
boat marinas, numerous parks, and exemplary health care. The City
of Huntington Beach is located along the Southern California coast in
Orange County, 35 miles south of Los Angeles and 90 miles north of San
Diego. Named for railroad magnate Henry Huntington who orchestrated
its development, the city is now an epicenter of activity and entertainment
with wide, sandy beaches.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
PROPERTY DESCRIPTION
H
11
P ROPERTY DESCRI PTI ON
LOCAL MAP
N
W
E
S
12
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
REGIONAL MAP
PROPERTY DESCRIPTION
N
W
E
S
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
13
P ROPERTY DESCRI PTI ON
AERIAL
14
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
AERIAL
3rd
S
et
tre
00
2,0
Ma
D
VP
5V
,89
5
et -
tre
PD
t Highway -
Pacific Coas
33,000 VPD
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
PROPERTY DESCRIPTION
- 6,000 VPD
in S
Orange Avenue
15
P ROPERTY DESCRI PTI ON
AERIAL
16
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
PLAT MAP
PROPERTY DESCRIPTION
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
17
PACIFIC CITY DEVELOPMENT LOCATION
ADDRESS: 21002 Pacific Coast Highway
P ROPERTY DESCRI PTI ON
31.5 acre gross site bounded by Pacific Coast Highway, Huntington Street, Atlanta Avenue and First Street.
18
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
PROJECT BACKGROUND
The map was recorded on August 30, 2007. The project started construction
on two thirds of the subterranean parking structure along Pacific Coast
Highway but ceased construction in approximately 2008 due to the downturn
in the economy and market conditions. The site was acquired by new property
owners, Crescent Heights and DJM Capital Partners. Crescent Heights is the
owner of the residential portion of Pacific City, and DJM is the current owner
of the commercial parcels. Pacific City Hotel, LLC recently acquired the hotel
parcel from DJM. Subsequently, approval of EPA No. 12-005 and DA No. 12001 amended conditions of approval related to affordable housing, park and
school fees, and project phasing. Amendments to the residential site plan,
floor plans, and elevations were approved by the Planning Commission via
EPA No. 12-007 and EPA No. 12-009 in 2012. The City Council approved the
Entitlement Plan Amendment No. 13-001, Variance No. 13-008, and Special
Permit No. 13-001 for the revised commercial plans on September 16, 2013.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
PROPERTY DESCRIPTION
O
n June 7, 2004, the City Council approved Environmental Impact Report
No. 02-01, Tentative Tract Map No. 16338, Conditional Use Permit
No. 02-20, Special Permit No. 02-04, Coastal Development Permit No. 0212, and Conceptual Master Plan for the Pacific City project. The approved
Pacific City mixed use project allowed subdivision of the approximately 31
acre site into three parcels and permitted development of 516 condominiums,
an eight story, 400 room hotel, spa and health club, and 191,100 square
feet of visitor-serving commercial uses with retail, office, restaurant, cultural,
and entertainment uses. The approved project was subsequently reduced
through an entitlement plan amendment in 2008 to a 250 room hotel and
a corresponding reduction in the parking through a revised shared parking
analysis.
19
20
21
Huntington Beach, California
http://upload.wikimedia.org/wikipedia/commons/1/17/Sunset_at_Huntington_Beach.jpg
PRICING & FINANCIAL
FINANCIAL OVERVIEW
RENT ROLL
TENANT LEASE SUMMARY
FINANCIAL OVERVIEW
PROPERTY
Price
Best Offer
Gross Leasable Area (GLA)
13,760 SF
Year Built
Net Operating Income - Current
24
1996
$330,240
RENT ROLL
TENANT
24 Hour Fitness
GLA
13,760 SF
LEASE
COMMENCE
6/10/1996
LEASE
EXPIRE
2/28/2017
ANNUAL
RENT
$330,240
MONTHLY
RENT/SF
RENT
$27,520
$2.00
OPTION
No Options
Remaining
LEASE TYPE
COMMENTS
NNN
Land-lord is responsible
for the structure parts of
the building: foundations,
bearing & exterior walls,
subflooring and roof.
*New roof was placed on the building in 2006.
25
TENANT LEASE SUMMARY
Tenant Name:
Gross Leasable Area:
Headquartered:
No. Of Locations:
PRICING & FINANCI AL
Website:
24 Hour Fitness
13,760 SF
San Ramon, CA
400
www.24hourfitness.com
H
eadquartered in San Ramon, Calif., 24 Hour Fitness is a leading health club industry pioneer, serving
nearly four million members in more than 400 clubs across the U.S. Since the beginning, the company
has been dedicated to helping members change their lives and reach their individual fitness goals. With
convenient club locations, personal training services, innovative group exercise classes and a variety of
strength, cardio and functional training equipment - 24 Hour Fitness offers fitness solutions for everyone.
24 Hour Fitness is committed to being a good neighbor in its communities via charitable and in-kind donations
to groups focused on both helping Americans get healthy and improving youth fitness. The company’s national
accreditation from the Better Business Bureau, which includes A+ ratings for all club locations across the
U.S., demonstrates the organization’s ongoing commitment to member satisfaction.
In 2005, the company was sold to New York-based private equity firm, Forstmann Little & Co.
26
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
27
Huntington Beach, California
http://gaizattheworld.com/assets/Sunset-8-Final-1200X800.jpg
MARKET COMPARABLES
RECENT SALES MAP
RECENT SALES
RECENT SALES MAP
2
COMPARABLES
4
1
6
35
Recent Sales
24 Hour Fitness
1
2
3
4
5
6
30
Rite Aid
Walgreens
The Plaza
The Strand
Quicksilver
3224-3250 East Coast Highway
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
RECENT SALES
CLOSE
OF ESCROW
YEAR
BUILT
SALE
PRICE
24 Hour Fitness
303 3rd Street
Huntington Beach
California 92648
TBD
1996
Best Offer
100%
TBD
TBD
13,760 SF
.20
Acres
24 Hour Fitness
1
Rite Aid
3141 Coast Highway
Corona Del Mar
California 92625
1/6/2015
1959 /
1997
$8,000,000
100%
$836.56
2.94%
9,563 SF
0.56
Acres
Rite Aid
2
Walgreens
4935 Warner Avenue
Huntington Beach
California 92649
1/17/2015
2011
$16,400,000
100%
$1,190.82
5.13%
13,772 SF
0.32
Acres
Walgreens
3
The Plaza
303 Broadway Avenue
Laguna Beach
California 92651
0.64
Acres
-2 Story Mixed Use
-Nirvana Grill
-Casey’s Cupcakes
-Laguna Coast
-So Cal Real Estate
4
The Strand
100-1505th Street
Huntington Beach
California 92648
2/13/2015
2008
$64,000,000
100%
$698.15
5.50%
96,000 SF
3
Acres
2 Story Mixed Use
-Active Ride Shop
-CVS
-Forever 21
-Johnny Rockets
5
Quicksilver
249 & 255 Forest
Avenue
Laguna Beach
California 92651
On Market
1928 /
1999
$8,547,000
100%
$1,871.88
3.15%
4,566 SF
0.06
Acres
-2 Story Mixed Use
-Quicksilver
-KPC, LLC
3224-3250 East
Coast Highway
3/19/2014
1965
$7,000,000
100%
$969.93
4.16%
7,217 SF
6
Corona del Mar
California 92625
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
0.29
Acres
-Quiet Woman
-Papas Liquor
-Directors Financial
Group
2/13/2014
1986
$8,950,000
PERCENT PRICE PER
DOWN SQUARE FOOT
40%
$534.42
CAP
RATE
5.11%
GROSS
LEASABLE AREA LOT SIZE
16,7474 SF
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
MAJOR
TENANTS
COMPARABLES
PROPERTY
31
Huntington Beach, California
https://thenypost.files.wordpress.com/2014/07/huntingtonbeach.jpg
MARKET OVERVIEW
LOCATION OVERVIEW
COUNTY OVERVIEW
ECONOMY
LABOR
EMPLOYERS
DEMOGRAPHICS
LOCATION OVERVIEW
MARKET HIGHLIGHTS
Diversified employment base

Major employers include those in tourism,
high-tech operations and aerospace/military
contracting.
Extensive foreign investment
MARKET OVERVI EW

Numerous foreign firms place headquarters in
the area to be near Southern California ports of
entry and the Southwest.
High median household income

The median household income in Orange
County is far above the national level.
GEOGRAPHY
L
ocated in the heart of Southern California, Orange County’s land
area covers 790 square miles, bordering the counties of Los
Angeles, San Diego, Riverside and San Bernardino. Elevations
range from sea level at the coast to 5,687 feet at Santiago Peak in
the Saddleback Mountains. The western edge of Orange County is
defined by 42 miles of Pacific Ocean beachfront, one of the longest
uninterrupted stretches of public beaches in the world.
34
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
COUNTY OVERVIEW
METRO
T
he population of the Orange County metro soared during the 1980s
and 1990s and today contains a population of nearly 3.1 million
residents. Anaheim is the largest city, with 345,700 citizens, followed
by Santa Ana. Over the next five years the county is expected to grow
at an annual rate of 0.6 percent with the highest growth in outer-lying
communities where undeveloped land is available.
I
LARGEST CITIES: ORANGE COUNTY
nterstates 5 and 405, along with three major freeways — state
Routes 91, 22 and 57 — serve as the primary arteries for surface
transportation within Orange County. In addition, toll roads throughout
the county also aid in reducing traffic congestion.
As a result of growing populations in cities like Tustin and Irvine,
efforts are being made to expand state Route 241. This would help
alleviate traffic on Interstate 5 by offering an easier route to the
northern portion of the county and Riverside County.
Although John Wayne Airport is the only commercial-service airport
in Orange County, three additional international airports are located
nearby in Long Beach, Ontario and Los Angeles.
Bus service for the county is provided by the Orange County Transit
Authority, while Metrolink operates three commuter rail lines through
the region.
Santa Ana
Anaheim
Irvine
Huntington Beach
Garden Grove
Orange
341,900
336,700
193,200
193,100
168,200
133,400
MARK ET OVERVIEW
INFRASTRUCTURE
2010 Estimate
Sources: Marcus & Millichap Research Services, AGS
AIRPORTS
MAJOR ROADWAYS

John Wayne International Airport

Interstate 5 and 405

One general aviation airport

State Routes 1, 22, 57, 91 and 541
RAIL
ORANGE COUNTY IS:

Freight - Union Pacific

30 miles from Los Angeles

Passenger - Amtrak

90 miles from San Diego

Commuter - Metrolink

110 miles from the Mexican border

270 miles from Las Vegas
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
35
ECONOMY
T
MARKET OVERVI EW
he aerospace and technology industries comprise a significant portion
of Orange County’s economy, creating products that are sold to national
and global markets. Defense spending has built a strong local aerospace
market, and the improving economy has boosted tech sales. Employment
in the missile and space industry remains high, while manufacturers
of aircraft parts continue to produce equipment to meet government
needs. Homeland security and defense contracts for technology and
telecommunicationsrelated goods also support Orange County’s smaller
electronics firms.
36
The travel and tourism industry is improving in line with national employment
growth. The Walt Disney Co. recently completed a $1.1 billion overhaul of
Disney’s California Adventure theme park. The company expanded the 55acre site by 12 acres and used the space for new attractions.
Orange County’s high-tech sector is experiencing a revival as major
companies move to the area. Private research and development, coupled
with work done at numerous universities, will play a vital role in the growing
high-tech base, which offers employment at companies such as Broadcom
and Google. Medical device research and production is also expanding with
companies such as Beckman Coulter, Endologix, Edwards Lifesciences
and Allergan.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
LABOR
T
he Orange County economy has made strides toward recovery, with
payrolls expanding at a healthy clip. The local job market turned positive
and is forecast to grow by an annual average of 2.2 percent over the next five
years, more than offsetting most of the jobs lost through the downturn.
The travel and tourism sector continues to show signs of improvement.
Average hotel occupancy for the county is recovering from the lows recorded
through the recession. This will translate into increased hiring as coastal
resorts and hotels, restaurants, theme parks, and travel-related firms add
jobs to meet increased demand. Over the next five years, this segment will
boost employment by 2.1 percent annually.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
MARK ET OVERVIEW
A sizable number of office-using jobs were eliminated in recent years, with
nearly half of the losses coming in the professional and business services
sector. Staffing levels in white-collar professions are staging a recovery and
will account for an outsized share of new hires in the coming years. Officeusing payrolls are projected to increase by 54,600 employees, representing a
growth rate of more than 3 percent in each of the the next five years.
37
EMPLOYERS
T
MARKET OVERVI EW
he Walt Disney Co. is one of Orange County’s most notable employers,
hiring thousands of mainly service workers. Disneyland serves as the
metro’s main tourist attraction, encompassing two theme parks, a lively
entertainment district and three hotels. Disneyland and the more recently built
California Adventure theme park offer an array of entertainment, shopping
and dining options.
The University of California, Irvine, is a major employer in the county and
home to the UC Irvine College of Medicine and the UC Irvine Medical Center.
The UC Irvine College of Medicine provides scholarly research, physician
education and high-quality care to patients. Other healthcare companies
include Tenet Healthcare System, Kaiser Permanente and St. Joseph Health
Systems.
MAJOR EMPLOYERS
University of California, Irvine
The Walt Disney Co.
Boeing Co. employs thousands of people across multiple sites in Orange
County. Several years ago, the company switched its operations from strictly
airplane manufacturing to an integrated aerospace conglomerate. The metro’s
manufacturing centers in Anaheim and Seal Beach support the space and
communications sectors of the company, which focus on global positioning
system satellite construction and defense electronics.
St. Joseph Health Systems
Boeing Co.
Bank of America Corp.
Yum! Brands Inc.
Supervalu Inc.
Kaiser Permanente
Target Corp.
Hoag Memorial Hospital Presbyterian
38
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
DEMOGRAPHICS
O
range County is one of the most populous counties in the nation, with
nearly 3.1 million residents. From 2000 to 2010, the population increased
by 0.6 percent annually. Development constraints throughout Orange County
will keep population growth at the same level over the next five years.
The high median home price in Orange County is a major concern for
the region, as rising prices have already limited population gains and
homeownership. Last year, 54.4 percent of residents owned their homes. A
growing economy, however, is expected to create higher-paying jobs, while
recent declines in home values will improve housing affordability. In addition,
over the next five years, household incomes are expected to rise faster than
home prices.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
MARK ET OVERVIEW
An increase in employment will attract young workers to the County. The
population in the 25- to 44-year old age group accounts for 28 percent of the
total population. The influx of a youthful labor force has kept the median age,
currently at 36.7, lower than the national average. Many of these workers are
well educated. Currently, 36 percent of residents have attained a bachelor’s
degree compared with 27.9 percent for the U.S.
39
Huntington Beach, California
http://www.watdek.com/huntington-beach-pier-night-wallpaper-cool-desktop/
DEMOGRAPHIC ANALYSIS
DEMOGRAPHIC REPORT
SUMMARY REPORT
POPULATION DENSITY
EMPLOYMENT DENSITY
AVERAGE HOUSEHOLD INCOME
TRAFFIC COUNT
D EMOGRAPHIC ANALYSI S
DEMOGRAPHIC REPORT
Population
1-Mile
3-Miles
5-Miles
Households
1-Mile
3-Miles
5-Miles
2000 Population
2010 Population
2013 Population
2018 Population
19,151
19,353
20,321
20,620
98,144
99,795
102,915
104,316
267,171
269,115
278,438
280,503
2000 Households
2010 Households
2013 Households
2018 Households
9,207
9,097
9,616
9,735
39,248
40,175
41,794
42,535
99,327
100,845
105,152
106,134
2013 Average HH Size
2.14
2.45
2.61
2013 Daytime Population
6,150
26,585
102,346
2000 Owner Occupied Housing Units
2000 Renter Occupied Housing Units
2000 Vacant
43.46%
52.50%
4.04%
62.92%
34.35%
2.73%
54.87%
42.31%
2.81%
2013 Owner Occupied Housing Units
2013 Renter Occupied Housing Units
2013 Vacant
44.76%
55.24%
3.65%
63.05%
36.95%
1.16%
54.62%
45.38%
1.14%
2018 Owner Occupied Housing Units
2018 Renter Occupied Housing Units
2018 Vacant
44.89%
55.11%
3.73%
62.83%
37.17%
1.17%
54.67%
45.33%
1.14%
Income
1-Mile
3-Miles
5-Miles
$ 0 - $ 14,999
$ 15,000 - $24,999
$ 25,000 - $34,999
$ 35,000 - $49,999
$ 50,000 - $74,999
$ 75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $200,000
$200,000 to $249,999
$250,000 +
6.1%
5.9%
6.7%
10.2%
17.4%
14.5%
11.6%
7.1%
9.0%
4.5%
6.9%
6.4%
6.1%
6.3%
9.7%
15.6%
13.3%
12.1%
8.4%
10.2%
4.8%
7.2%
6.8%
7.0%
7.2%
11.1%
17.4%
13.6%
11.3%
7.8%
8.9%
3.5%
5.3%
2013 Median HH Income
2013 Per Capita Income
$80,868
$55,357
$85,619
$48,997
$75,731
$40,403
2013 Average HH Income
$116,925
$120,360
$106,417
DEMOGRAPHIC DATA © 2012 BY EXPERIAN/APPLIED GEOGRAPHIC SOLUTIONS.
42
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
SUMMARY REPORT
Geography: 5 Miles
Population
Race & Ethnicity
In 2014, the population in your selected geography is 278,437. The population
has changed by 4.21% since 2000. It is estimated that the population in
your area will be 280,503 five years from now, which represents a change
of 0.74% from the current year. The current population is 50.11% male and
49.88% female. The median age of the population in your area is 38.8,
compare this to the Entire US average which is 37.3. The population density
in your area is 3,544.95 people per square mile.
The current year racial makeup of your selected area is as follows: 71.60%
White, 1.10% Black, 0.33% Native American and 12.48% Asian/Pacific
Islander. Compare these to Entire US% averages which are: 71.60% White,
12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.
There are currently 105,151 households in your selected geography. The
number of households has changed by 5.86% since 2000. It is estimated
that the number of households in your area will be 106,133 five years from
now, which represents a change of 0.93% from the current year. The average
household size in your area is 2.61 persons.
Housing
Income
Employment
In 2014, the median household income for your selected geography is
$75,731, compare this to the $Entire US average which is currently $51,972.
The median household income for your area has changed by 22.15% since
2000. It is estimated that the median household income in your area will be
$89,229 five years from now, which represents a change of 17.82% from the
current year.
In 2000, there were 56,083 owner occupied housing units in your area and
there were 43,243 renter occupied housing units in your area. The median
rent at the time was $919.
In 2014, there are 102,345 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that 71.58% of
employees are employed in white-collar occupations in this geography, and
28.49% are employed in blue-collar occupations. In 2014, unemployment
in this area is 6.18%. In 2000, the average time traveled to work was 27.7
minutes.
DEMOGRAPHIC ANALYS IS
Households
People of Hispanic origin are counted independently of race. People of
Hispanic origin make up 23.19% of the current year population in your
selected area. Compare this to the Entire US% average of 17.13%.
The current year per capita income in your area is $40,402, compare this
to the $Entire US average, which is $28,599. The current year average
household income in your area is $106,416, compare this to the $Entire US
average which is $74,533.
DEMOGRAPHIC DATA © 2012 BY EXPERIAN/APPLIED GEOGRAPHIC SOLUTIONS.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
43
D EMOGRAPHIC ANALYSI S
POPULATION DENSITY
N
E
W
S
DEMOGRAPHIC DATA © 2012 BY EXPERIAN/APPLIED GEOGRAPHIC SOLUTIONS.
44
Theme
Low
High
Low
Less Than
55
Below Average
55
475
Average
475
4100
Above Average
4100
3500
High
35000
or More
Number of people living in a given area per square mile.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
EMPLOYMENT DENSITY
DEMOGRAPHIC ANALYS IS
N
E
W
S
DEMOGRAPHIC DATA © 2012 BY EXPERIAN/APPLIED GEOGRAPHIC SOLUTIONS.
Theme
Low
High
Low
Less Than
9
Below Average
9
96
Average
96
1025
Above Average
1025
10875
High
10875
or More
Number of people living in a given area per square mile.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
45
D EMOGRAPHIC ANALYSI S
AVERAGE HOUSEHOLD INCOME
N
E
W
S
DEMOGRAPHIC DATA © 2012 BY EXPERIAN/APPLIED GEOGRAPHIC SOLUTIONS.
46
Theme
Low
High
Low
Less Than
$29,500
Below Average
$29,500
$48,500
Average
$48,500
$80,000
Above Average
$80,000
$132,500
High
$132,500
or More
Number of people living in a given area per square mile.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
TRAFFIC COUNT
DEMOGRAPHIC ANALYS IS
N
E
W
S
DEMOGRAPHIC DATA © 2012 BY EXPERIAN/APPLIED GEOGRAPHIC SOLUTIONS.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to
square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID
47
Huntington Beach, California
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