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1111 W. Town & Country Road, Unit 1, Orange, CA 92868 100% Leased Medical office Condo For Sale - $1,889,970 – 6% Cap Rate Town & Country Business Plaza 1111

Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

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Page 1: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

1111 W. Town & Country Road, Unit 1, Orange, CA 92868100% Leased Medical office Condo For Sale - $1,889,970 – 6% Cap Rate

Town & Country Business Plaza

1111

Page 2: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times, different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”) and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arm’s length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENTYour receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMERThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property”s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner. PMStudio_October 2018

Page 3: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

NMOS 356118

CALIFORNIA

22

Town & Country Rd

Main St

Lawson W

ay

Town & Country Business Plaza

1111

TABLE OF CONTENTS

Offering Summary 4

Investment Offering 5

Property Description 6

Property Highlights 8

Market and Area Overview 9

Tenant Profile 11

Summary of Lease Terms 12

CONTACT

Tom AbelFirst Vice President

Lic. 00985659+1 714 371 9255

[email protected]

Page 4: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

| Town & Country Business Plaza 11114

Offering Summary

CBRE is pleased to present for sale a prime 100% leased office condominium within the Town & Country Business Plaza located at 1111 W. Town & Country Road, Orange, California. This property offers an investor the opportunity to acquire an office/medical condominium with an established physical therapy practice as the sole tenant on a five (5) year lease with one (1) five (5) year extension option.

Town & Country Business Plaza was built in 1976 as an office condominium project for sale and consists of 53 units in approximately 54,000 square feet, with 4:1,000 free surface parking. The project is controlled by the Town & Country Business Plaza Association and managed by JD Property Management, a local third party property management firm.

The subject property is centrally located near the confluence of the Garden Grove (22), Santa Ana (5) and Orange (57) Freeways in the Town & Country Submarket of Central Orange County. Major employers in the area include St. Joseph Hospital, Children’s Hospital of Orange County (CHOC), UC Irvine Medical Center, Orange County Transportation Authority Headquarters, Alignment Healthcare, Western Dental and AECom Technology Corp. Additionally, Main Place Regional Mall is within walking distance to the subject property.

Page 5: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

5Town & Country Business Plaza 1111 |

Income $144,000.00

Less 5% Vacancy ($7,200.00)

Gross Income $136,800.00

Less Operating Expenses ($23,402.00)* $4.96/SF

Net Operating Income $113,398.00 $12.00/SF/Year ($2.00/SF/month)

*Operating Expenses IncludeProperty Taxes ($10,824.00), Insurance ($643.00) and Association Dues ($11,935.00)

Asking Price $1,889,967.00 ($400.67/SF)

Cap Rate 6% (First Year)

Ideal investment opportunity within a well-located office/medical project.

Investment Offering

Page 6: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

| Town & Country Business Plaza 11116

Property DescriptionProject Name Town & Country Business Plaza

Property Address 1111 W. Town & Country Road, Unit 1 - Orange, CA 92868

Assessor’s Parcel Number 937-230-01, 17, 18, 19, 20

Offering Price $1,889,967.00

Current Property Use Physical Therapy Center

Property Size 4,717 Square Feet

Project Size 54,000 Square Feet on 4.6 acres (53 units)

Improvements One-story wood frame and stucco building with partial 2nd floor area included

Parking 4:1,000 ratio surface spaces, unreserved

Signage Standard can signs above each unit

Ownership Fee simple with shared common area

Zoning Commercial

Page 7: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

7Town & Country Business Plaza 1111 |

Floor Plan

Page 8: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

| Town & Country Business Plaza 11118

Property Highlights

Densely Populated Trade Area269,225 residents within a 3-mile radius

ZoningCommercial

Affluent Area$87,229 in a 1-mile radius

LocationTown & Country area of Orange includes retail, office, medical and multi-family uses

Land Area of Project±4.6 Acres

Convenience: Adjacent toGarden Grove (22), Santa Ana (5) and Orange (57) Freeways with strong daytime population

Page 9: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

9Town & Country Business Plaza 1111 |

Market and Area Overview

The Subject Property is located in Central Orange County, specifically in the Town & Country Office Submarket. As of the 3rd Quarter 2018, the direct office vacancy for Central Orange County was 12.1% compared to 11.3% for the Town & Country Office Vacancy and 10.1% for all of Orange County. The average asking rental rate was $2.39/SF per month for Central Orange County and $2.80/SF per month for the Town & Country Office Submarket.The main attraction to the Town & Country area is the presence of St.

Joseph Hospital and Children’s Hospital of Orange County (CHOC) along with strong retail amenities from the Main Place Regional Mall (walking distance from the Subject Property) and the convenience of the four (4) freeways: Santa Ana (5), Garden Grove (22), Orange (57) and Costa Mesa (55). The labor force is well educated and the varied housing options make the area ideal for patients and staff of Walker Physical Therapy.

Page 10: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

| Town & Country Business Plaza 111110

NMOS 356118

5INTERSTATE

5INTERSTATE

CALIFORNIA

22

CALIFORNIA

55

CALIFORNIA

55

CALIFORNIA

57

CALIFORNIA

57

Chapman Ave

Katella Ave

Collins Ave

Walnut AveOrangewood Ave

La Veta Ave

Fairhaven Ave

Santa Clara Ave

Tustin St

Grand A

ve

Glassell St

Main St

State College Blvd

Lewis St

Angel’s Stadium

Honda Center

CHOC(Children’s Hospitalof Orange County)

Western DentalServices Headquarters

Orange CountyTransportation Authority

UCI MedicalCenter

St. JosephHospital

Main Place Mall

The Outletsat Orange

Town & Country Business Plaza

1111

Page 11: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

11Town & Country Business Plaza 1111 |

Tenant ProfileWalker Physical Therapy, an established physical therapy and pain management center with approximately 1,000 patients per month was recently acquired by Synergy Physical Therapy Holdings III LLC and operates under Synergy Physical Therapy Management Company LLC. The new lease was extended through December 31, 2023 and includes one (1) five (5) year Option to Extend at Fair Market Rent. When Synergy acquired Walker Physical Therapy in 2018, this acquisition was one of a group of multiple physical therapy practices that Synergy acquired at the same time. Synergy is just one of many investment groups designed to take advantage of existing practices that can be combined for economies of scale and a stronger branded network for driving physician referrals to maximize revenue for their multiple practices.

Page 12: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

| Town & Country Business Plaza 111112

Summary of Lease Terms

Property Address 1111 W. Town & Country Road, Unit 1, Orange, CA 92868

Size 4,717 Square Feet

Tenant Synergy Physical Therapy Management Company LLC

Lease Term Sixty-four (64) months

Lease Commencement Date September 1, 2018

Lease Expiration Date December 31, 2023

Monthly Rent $12,000.00 ($2.55/SF) Modified Gross

Annual Increases 2%

Operating Expenses $23,402 ($4.96/SF/Year)

Tenant Responsibilities HVAC maintenance, utilities, janitorial, plumbing, light bulb replacement

Lease Guarantor Synergy Physical Therapy Holdings III LLC

Option to Renew One (1) five (5) year Option at Fair Market Rent

Page 13: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

13Town & Country Business Plaza 1111 |

Page 14: Town & Country · N MOS 356118 C A L I FORNI A 22 Town & Country Rd Main St Lawson Way Town & Country Business Plaza 1111 TABLE OF CONTENTS Offering Summary 4 Investment Offering

1111 W. Town & Country Road, Unit 1, Orange, CA 92868100% Leased Medical office Condo For Sale - $1,889,970 – 6% Cap Rate

Town & Country Business Plaza

1111

CONTACT

Tom AbelFirst Vice PresidentLic. 00985659+1 714 371 [email protected]

© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. 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. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. PMStudio_October2018