Listed by Northmarq Capital, LLC, Northmarq
$11,264,576
Montbleau & Associates
Details
Property Type Industrial
Sub Type Warehouse
Square Footage 36,643
Cap Rate 6.25%
NOI $704,036
Occupancy 100%
Tenancy Single
Lease Type Absolute NNN
Lease Term 15
Lease Expiration 03/31/2038
Remaining Term 11.8
Rent Bumps Yes
Lease Options 3, 5yr Options
Price per SqFt $19
Year Built 1984
Year Renovated 2008
Buildings 1
Stories 2
Acreage 1.330
Zoning IL-2-1: Industrial Light Zone 2-1
Parking Spaces 31 spaces
Parking Per SqFt 0.85
Lease Commencement 03/21/2023
Ground Lease No
Ownership Fee Simple Absolute
STNL Industrial Absolute NNN Lease | 11.5+ Years Remaining | 3 Miles from Downtown San Diego
Marketing description
Northmarq, on behalf of Ownership as its exclusive advisor, is pleased to offer the opportunity to acquire the 100% fee simple interest in the Montbleau & Associates Headquarters facility located at 555 Raven Street in San Diego, California (the “Property”). Positioned just over three miles from downtown San Diego at the southeast corner of Market Street and Raven Street, the Property represents rarely available urban infill real estate in one of the most desirable markets in the country.
Investment highlights
- INDUSTRY-LEADING TENANT WITH STRONG HISTORY & REPUTATION
- Montbleau is a leader in the architectural millwork industry and a go-to resource in the hospitality and commercial building industry in not only California, but nationwide. The company is routinely recognized for its work and boasts relationships with many of the best known architectural, development and interior design firms in the world.
- MISSION-CRITICAL HQ LOCATION WITH STRONG HISTORICAL OCCUPANCY & COMPLEX BUILD-OUT
- The Property serves as Montbleau’s headquarters, housing office, studio and manufacturing space. The Company has maintained a presence in this facility, operating state-of-the-art components and system processes that would be very difficult to move and/or replicate – i.e., they have been and continue to be highly incentivized to remain in this location for the foreseeable future. Montbleau has occupied the facility since 1996 — approximately 30 years of continuous occupancy. The company itself was founded in 1979 and since 1996 has maintained this location as its headquarters.
- NEW LONG-TERM LEASE WITH 11.5+ YEARS REMAINING
- Montbleau signed a new 15-year lease that commenced in 2023 and runs through March 2038 with three, five-year renewal options to immediately follow.
- ABSOLUTE NNN LEASE WITH AGGRESSIVE RENTAL GROWTH
- Lease is completely passive with no managerial or financial obligations for the Landlord and features 3.50% annual rent increases across both the base term and each option period (with opportunity for higher bump at the start of each option based on fair market).
- STRATEGIC INDUSTRIAL POSITIONING IN DENSE SUBMARKET
- The Property is in close proximity to four major arterials (I-5, I-805, CA-15 & CA-94) within an industrial submarket that includes 4.5 million square feet of industrial space valued at more than $1.3 billion.
- CLOSE PROXIMITY TO DOWNTOWN SAN DIEGO & MAJOR POPULATION DRIVERS
- The Property is positioned less than four miles from downtown San Diego, seven miles from the San Diego International Airport and within 15 minutes of both the Naval Air Station North Island and Naval Base San Diego. San Diego is known as “Navy Town USA” with these facilities comprising the largest concentration of Navy/Marine assets in the world, home to more than 115,000 active-duty service members, supporting over 300,000 jobs in the market and generating more than $40 billion in economic activity annually which represents 25% of the region’s entire GDP.
- EXCEPTIONAL DEMOGRAPHICS
- San Diego is the eighth-most populous city in the U.S. and second-most populous city in California with a population of over 1.4 million. The San Diego metro area is the country’s 18th-largest with over 3.3 million residents. The city’s entire population is essentially located within 10 miles of the Property with average household incomes exceeding $126,100 in that radius.
- CALIFORNIA INVESTMENT OPPORTUNITY
- California boasts the largest state economy in the U.S. and, if it were a country, would rank among the world’s best. It is home to a diverse range of industries and offers incredibly high population density. As a result, California real estate has historically been one of the top states for property appreciation as demand for housing and commercial properties remains consistently high.
Listing Contacts
Listed by Northmarq Capital, LLC, Northmarq
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$704,036.00
$58,669.67/mo
Valuation Metrics
0
DSCR
6.25%
Cap Rate
6.25%
ROI
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