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01.21.15 | 949.231.5022 | windwaterrealty.com | 1
WindWater.com 949.231.5022
17922 FITCH IRVINE CALIFORNIA Offering Memorandum
FOR SALE
Wind Water Realty (“Broker”) has made available for review these informational materials subject to the terms of
the “Mutual Confidentiality and Non Disclosure Agreement” signed by you, emphasizing the mutual agreement
by you and the Broker to keep information disclosed in these materials strictly confidential. These materials
are being given to you for the sole purpose of evaluating the possible acquisition of 17922 Fitch, Irvine,
CA (the “Property”), and is not to be used for any other purpose. These materials must not be reproduced,
altered or made available to any other party without prior written consent of Wind Water Realty, and further,
must not be used to pursue strategies for individual gain by you without the involvement of the Broker.
CONFIDENTIALITY AGREEMENT
DISCLAIMER: All material published by Wind Water Realty in any medium is protected by copyright law. Use,
reproduction, retransmission or broadcast of any copyrighted materials, whether online or in-print of any kind is
strictly prohibited without the prior written permission of Wind Water Realty.
©2017 Wind Water Realty. All rights reserved. The information contained herein has been obtained from sources we
deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it.
Contact Us To Speak With A Real Estate Expert
WindWater.com 949.231.5022
949.231.5022 WWW.WINDWATER.COM 3
Exclusive Listing By:
Rob [email protected]. #01373045
Russ [email protected]. #01919442
Louis [email protected]. #01401195
Wind Water Realty2860 Michelle Drive, Suite 150Irvine, CA 92606
949.231.5022 WWW.WINDWATER.COM 4
INVESTMENT H IGHLIGHTS
• Approximately $656,000 of in place NOI
• 100% Leased, NNN Investment with 5 Tenants
• Over $3 million in capital improvements since 2015
• Approximate 25,155 square foot, two-story, contemporary
office building
• Asking price $11,950,000 / $475 PSF; 5.5% cap rate
• Located in master planned City of Irvine - America’s Safest
City
• Minutes from John Wayne Airport and convenient freeway
access
• Designed by world renowned architect, Gensler
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100% NNN LEASED “CLASS“ A OFFICE BUILDING
Opportunity to acquire a ±25,155 square foot, multi-tenant creative office building in Irvine, CA. The property is 100% leased. $656,000 of net operating income in-place.
Combining live, work and play is the motto of Irvine and 17922 Fitch is the monument in that regard. Transforming this 2-story office building wasn’t easy but the results were well worth the effort. Over $3 million was spent on renovating the exterior hardscape, facade as well as designing the interior suites.
Occupants of this property understand the benefits of flexible indoor and outdoor work environments.
With a courtyard and small floor plates, each tenant is offered natural light on both sides of their suite and most have a roll up door to enjoy the Southern California weather.
The efficient floor plans ensure releasability, respectable tenants and desirable cash flow.
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AERIAL MAP
55
405
RED
HILL
VON
KARM
AN
JAMBOREE
MACARTHUR
ALTON
BARRANCATHE DISTRICT
TUSTIN LEGACY FUTURE DEVELOPMENT
17922 FITCH
JOHN WAYNE AIRPORT
SOUTH COAST PLAZA
MAIN
73
BRISTOL
SUNFLOWER
MAIN
W. MACARTHUR
COSTA MESA
TUSTINSANTA ANA
IRVINE
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CITY OF IRVINE
Irvine is a city like no other: a master-planned balance of urban living and preserved
natural space at the center of Orange County in coastal Southern California.
Irvine is an exceptional destination for meetings and events, a multicultural home to over
100 company headquarters, and takes pride in its highly sought-after retail shopping
center, the Irvine Spectrum, and award-winning, prestigious University of California Irvine.
Location is one of Irvine’s best features. Bordered by Newport Beach, Costa Mesa, Santa
Ana, Tustin and is also a convenient gateway to some of the best attractions of Southern
California.
Irvine is criss-crossed by Interstate 405 running roughly east-west, Interstate 5 as an inland
parallel to the California coast, and Highway 55 (Costa Mesa Freeway) connecting the two,
it offers easy to access all of Orange County’s attractions, beaches and communities.
Irvine is a multicultural nexus of education, innovation, business, preserved wildlands,
outdoor recreation, the arts and family-friendly communities -- a growing urban center
roughly 45 square miles with a population of just over 200,000. Quality of life here is high,
and the FBI has ranked Irvine “America’s Safest Big City” every year since 2005.
http://www.cityofirvine.org/about-irvine
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THE OFFERING
PROPERTY DETAILS
Address Building Size Land Size Parking Major X Streets Type Freeway Access
17922 Fitch, Irvine, CA
± 25,155 SF 74,052 SF 4:1000Ratio
Red Hill Ave & Main St Class A Office Building 5, 405& 55 Freeways
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TENANT OVERV IEW
Schiefer ChopShop Media FusionStorm KlientBoost WickedLiquid
Suite 10010,264 SF
Suite 1504,648 SF
Suite 2005,011 SF
Suite 2502,504 SF
Schiefer Chopshop is a fiercely independent media and creative content company, thriving on the change, and helping brands stay ahead of the curve.
FusionStorm brings industry leading data center, networking, communications and collaboration solutions to customers around the world, backed by comprehensive design, engineering, integration, implementation, logistics, support and cloud services.
KlientBoost provides PPC management services along with landing page design to help clients generate new leads, reach their goals and grow their business.
WickedLiquid is a small digital media studio specializing in quality motion graphics, 3D animation, and visual effects. A large part of the business has been working with the medical industry through the creation of photo-realistic 3D imagery and animation.
*Seller will lease back vacancy for 2 years (Suite 255).
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RENT ROLL
TenantStart DateEnd Date
SF $ RatesRent
Charges on Date
Rent Changes to $/SF - Annual
Rent Changes to $/SF - Monthly
Schiefer MediaSuite 100
10.24.201612.23.2021
10,264 Rate Per Year: 25.80Amount Per Year: 264,811
Rate Per Month: 2.15Amount Per Month: 22,608
Oct 2017Oct 2018Oct 2019Oct 2020Oct 2021
26.5727.3728.1929.0429.91
2.212.282.352.422.49
FusionStormSuite 150
01.01.201611.30.2021
4,648 Rate Per Year: 23.40Amount Per Year: 108,763
Rate Per Month: 1.95Amount Per Month: 9,064
July 2017July 2018July 2019July 2020July 2021
24.1024.8325.5726.3427.13
2.012.072.132.192.26
KlientBoostSuite 200
05.01.201706.30.2020
5,011 Rate Per Year: 26.40Amount Per Year: 132,290
Rate Per Month: 2.20Amount Per Month: 11,024
Rent Value Per Year: 129,284
May 2018May 2019May 2020
27.1928.0128.85
2.272.332.40
WickedLiquidSuite 250
09.01.201608.31.2021
2,504 Rate Per Year: 27.00Amount Per Year: 67,608
Rate Per Month: 2.25Amount Per Month: 5,634
July 2018July 2019July 2020July 2021
27.8128.6429.5030.39
2.322.392.462.53
Seller LeasebackSuite 255
07.01.201706.30.2019
2,728 Rate Per Year: 27.00Amount Per Year: 73,656
Rate Per Month: 2.25Amount Per Month: 6,138
July 2018 27.81 2.32
Structure Name
Net
Net
Net
Net
Net
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FIRST FLOOR: 14,912 SF
Schiefer MediaSuite 10010,264 SF
FusionStormSuite 1504,648 SF
F IRST FLOOR
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SECOND FLOOR: 10,243 SF
WickedLiquidSuite 2502,504 SF
KlientBoostSuite 2005,011 SF
Seller LeasebackSuite 2552,728 SF
SECOND FLOOR
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SUMMARY OF FINANCIAL ASSUMPTIONS
Summary of Financial AssumptionsGlobal Expenses Second Generation LeasingArea Measures Operating Expense Source 2017 Budget Retention Ratio 80%Building Square Feet (RSF) 25,155
Property Management Fee (% of EGR) 4.00% Financial TermsGrowth Rates Monthly Minimum $1,000 2017 Monthly Market Rent $2.25 /SFGeneral Inflation Rate 3.00% Rent Adjustment (Annual Increases ) 3.0%Other Income Growth Rate 3.00% Real Estate Taxes Reassessed No Lease Term 5 Years, 3 MonthsOperating Expenses Inflation Rate 3.00% Millage Rate 1.07512% Expense Reimbursement Type NetReal Estate Taxes 2.00% Special Assessments $11,873.58Market Rent Growth Tenanting Costs
FYE June, 2018 $2.25 Vacant Space Leasing Rent AbatementsFYE June, 2019 5.00% $2.36 Seller Leaseback - Suite 255 New 3 month(s)FYE June, 2020 3.00% $2.43 Lease Term 2 Years Renewal 0 month(s)FYE June, 2021 3.00% $2.51 Lease Rate ($/SF/Month) $2.25 /SF Downtime (Months Vacant)FYE June, 2022 3.00% $2.58 Expense Reimbursement Type Net New 3 month(s)FYE June, 2023+ 3.00% $2.66 Renewal 0 month(s)
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CASH FLOW PROJECTIONS
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
For the year ending: Jun, 2018 Jun, 2019 Jun, 2020 Jun, 2021 Jun, 2022 Jun, 2023 Jun, 2024 Jun, 2025 Jun, 2026 Jun, 2027 Jun, 2028
656,520 676,216 698,020 724,194 761,712 795,121 818,775 843,339 867,715 892,000 913,4040 0 -6,638 -12,559 -18,837 -6,658 0 -7,696 -14,560 -44,628 -7,7190 0 -3,983 -7,536 -23,098 -3,995 0 -4,617 -8,736 -26,777 -4,631
656,520 676,216 687,398 704,099 719,777 784,468 818,775 831,026 844,420 820,595 901,054656,520 676,216 687,398 704,099 719,777 784,468 818,775 831,026 844,420 820,595 901,054
232,355 238,711 241,939 245,896 249,841 264,012 274,721 278,384 282,674 275,773 302,002232,355 238,711 241,939 245,896 249,841 264,012 274,721 278,384 282,674 275,773 302,002
888,875 914,926 929,337 949,995 969,618 1,048,481 1,093,496 1,109,410 1,127,094 1,096,368 1,203,057
35,555 36,597 37,173 38,000 38,785 41,939 43,740 44,376 45,084 43,855 48,12252,420 53,993 55,286 56,663 58,072 60,441 62,592 64,091 65,688 66,200 70,06859,640 61,429 63,129 64,900 66,720 68,996 71,213 73,184 75,237 76,856 79,98523,200 23,896 24,479 25,099 25,733 26,761 27,702 28,378 29,096 29,374 31,02459,040 60,221 61,425 62,654 63,907 65,185 66,489 67,818 69,175 70,558 71,9692,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167 3,262 3,360
232,355 238,711 244,145 250,047 256,030 266,221 274,721 280,923 287,446 290,104 304,528
656,520 676,216 685,192 699,948 713,588 782,260 818,775 828,487 839,648 806,264 898,528
Rental Revenue Potential Base Rent
Total Other Tenant Revenue
Effective Gross Revenue
Operating Expenses Property Management Fees
Absorption & Turnover Vacancy Free Rent Scheduled Base RentTotal Rental Revenue
Other Tenant Revenue Total Expense Recoveries
Net Operating Income
Utilities Services Repairs & Maintenance Taxes & Insurance Professional FeesTotal Operating Expenses
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
For the year ending: Jun, 2018 Jun, 2019 Jun, 2020 Jun, 2021 Jun, 2022 Jun, 2023 Jun, 2024 Jun, 2025 Jun, 2026 Jun, 2027 Jun, 2028
656,520 676,216 698,020 724,194 761,712 795,121 818,775 843,339 867,715 892,000 913,4040 0 -6,638 -12,559 -18,837 -6,658 0 -7,696 -14,560 -44,628 -7,7190 0 -3,983 -7,536 -23,098 -3,995 0 -4,617 -8,736 -26,777 -4,631
656,520 676,216 687,398 704,099 719,777 784,468 818,775 831,026 844,420 820,595 901,054656,520 676,216 687,398 704,099 719,777 784,468 818,775 831,026 844,420 820,595 901,054
232,355 238,711 241,939 245,896 249,841 264,012 274,721 278,384 282,674 275,773 302,002232,355 238,711 241,939 245,896 249,841 264,012 274,721 278,384 282,674 275,773 302,002
888,875 914,926 929,337 949,995 969,618 1,048,481 1,093,496 1,109,410 1,127,094 1,096,368 1,203,057
35,555 36,597 37,173 38,000 38,785 41,939 43,740 44,376 45,084 43,855 48,12252,420 53,993 55,286 56,663 58,072 60,441 62,592 64,091 65,688 66,200 70,06859,640 61,429 63,129 64,900 66,720 68,996 71,213 73,184 75,237 76,856 79,98523,200 23,896 24,479 25,099 25,733 26,761 27,702 28,378 29,096 29,374 31,02459,040 60,221 61,425 62,654 63,907 65,185 66,489 67,818 69,175 70,558 71,9692,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167 3,262 3,360
232,355 238,711 244,145 250,047 256,030 266,221 274,721 280,923 287,446 290,104 304,528
656,520 676,216 685,192 699,948 713,588 782,260 818,775 828,487 839,648 806,264 898,528
Rental Revenue Potential Base Rent
Total Other Tenant Revenue
Effective Gross Revenue
Operating Expenses Property Management Fees
Absorption & Turnover Vacancy Free Rent Scheduled Base RentTotal Rental Revenue
Other Tenant Revenue Total Expense Recoveries
Net Operating Income
Utilities Services Repairs & Maintenance Taxes & Insurance Professional FeesTotal Operating Expenses
CONTACT US
Rob Rader
949.231.5022
Lic. 1373045
Russ Smith
949.556.3849
Lic. 01919422
Louis Alvarez
949.558.0369
Lic. 01401195
WindWater.com 949.231.5022
