25101-25161 Rye Canyon Loop, VaLenCia, CaLifoRnia

251 0 1 -251 61 Ry e C a n yo n Lo o p, Va l e n c i a , C a l i f o r n i a
A 431,660 Square Foot, 119.5 Acre Campus and
Development Opportunity for nearly 900,000 Square Feet
Capital Markets | Institutional Group
the offering
MA JOR TENANT SUMMARY
CBRE, as exclusive advisor, is pleased to present the opportunity
to acquire the fee simple interest in Mann Biomedical Park (“the
Tenant
Property”). The Property consists of 119.5 acres in Valencia
(credit rating)
with 16 separate office, industrial, and R&D buildings that total
431,660 rentable square feet. The Property, which stretches
across four separate land parcels, includes nearly 900,000
square feet of additional entitlements available for future
development. This value-add offering presents investors
with the exceptional opportunity to develop critical mass in
Los Angeles County while benefiting from solid in-place
income from a diverse and institutional quality tenant base.
2
Building
% Total
Boston Scientific (BBB-)
29
38%
Alfred Mann Foundation
34
17%
Quallion (BB)
61
14%
Bioness
2-3
10%
LEFT Volleyball and park amenities
right Helipad
OFFERING SUMMARY
Address
25101-25161 Rye Canyon Loop
Valencia, California 91355
NET Rentable Area
431,660 square feet
DEVELOPED
1960-2007
INVESTMENT HIGHLIGHTS
Campus Environment with Development Potential
Mann Biomedical Park offers investors the exceptional opportunity to accumulate critical mass in
SITE AREA
119.5 acres
ENTITLEMENTS
887,925 square feet
one of the strongest and fastest growing submarkets in Los Angeles. Fully entitled development
sites of this scale are incredibly scarce, making this offering particularly appealing. The 119.5
acre site is currently entitled for 887,925 square feet of future additional development. This
development opportunity allows investors to expand upon the campus’ current 16 buildings and
STORIES
1-3
world class amenities, which include a helipad, volleyball court, basketball courts, jogging trails,
a brewery and sound stages.
Credit Income Stream
The Park is 89.4% leased to a diverse and high quality rent roll that includes Boston Scientific (NYSE:
PARKING RATIO
4.9/1,000
2,085 surface parking spaces
BSX; S&P: BBB-), the Alfred Mann Foundation, and Quallion. Staggered expirations with limited
near term roll minimize risk and provide a solid income base through stabilization in this highly
desirable market.
Occupancy
89.4%
3
INVESTMENT HIGHLIGHTS - Continued
Stable Cash Flow with Compelling Upside
Synergistic In-Place Tenant Base
In-place rents are 25% below the weighted average market
Over the past ten years, legendary entrepreneur Alfred
rent in Valencia. Given the strong projected market rent
Mann has used the Mann Biomedical Park as an incubator
growth for this submarket, contract rents are poised to be
for his medical device and pharmaceutical startups.
substantially below market by the lease expirations. Below
His foundation, headquartered at the Park, provides
market rents coupled with future development creates
continued funding and support to help foster companies
the opportunity to create significant value and
from idea to fruition. Mann has founded and largely
compelling upside.
funded 17 companies in his career including Spectrolab,
Heliotek, Pacesetter Systems, MiniMed, Advanced Bionics,
Highly Developed Biomedical Market
Southern California employs over 112,000 professionals in
the biomedical marketplace, which accounts for 41.8%
of the State’s total biomedical industry employment. Los
Angeles ranks eighth among top US life sciences clusters,
specializing in medical research and medical device
manufacturing. The Los Angeles life science market covers
2.2 million square feet of laboratory space and 17 individual
MannKind, Second Sight, Bioness and Quallion. Nine have
been acquired at an overall total of almost $8 billion, and
two companies have gone public. The companies’ success
speaks largely to Mann’s leadership and the flexibility that
Mann Biomedical Park has provided for corporate growth.
The Park provides a prestigious corporate address within
a secure campus environment and provides an excellent
setting for today’s security conscious users.
biomedical companies are clustered in the Valencia
submarket alone.
Limited Supply of Alternatives for Tenants
The synergies between tenants at Mann Biomedical Park
make it an ideal space for the in-place tenant base. Boston
Scientific’s buildings are mission critical and difficult to
replicate. The current vacancy in the Valencia industrial
market, which is now below 1%, makes it increasingly
difficult for companies to find alternative space.
4
TOP LEFT Wolf Creek Brewery
BOTTOM LEFT Tenant fitness room
BOTTOM RIGHT Building 2 training room
a prestigious
corporate
address within
a secure
campus
5
EASY ACCESS TO
THE TRI-CITIES,
WEST Los Angeles,
AND DOWNTOWN
LOS ANGELES
Spiking Rental Rates
CBRE Econometrics Advisors projects Valencia to experience 25.8% cumulative rent growth by 2018, equal to a 5.3%
compounded annual growth rate.
Central Location
Located just 10 minutes north of the San Fernando Valley, with easy access to the Tri-Cities, West Los Angeles, and
downtown Los Angeles via the Golden State (I-5) freeway and minutes away from the Antelope Valley (14), Santa Paula
(126), Foothill (210), San Diego (405), Ronald Reagan (118), and Hollywood (170) Freeways, providing convenient access to
all areas of the Los Angeles and Ventura counties. Additionally, the Property is only 25 minutes from the Burbank Airport
and 40 minutes from the Los Angeles International Airport (LAX).
Unencumbered by Debt
Mann Biomedical Park will be sold free of existing debt to allow a buyer to take advantage of the current low interest rate
environment to maximize cash flow.
Development Summary
The Project is entitled for 1.5 million square feet of additional improvements per a Development Agreement (“The Agreement”)
signed in 1996 between the predecessor-in-interest, Lockheed Martin Corporation and the City of Santa Clarita. Given the existing
improvements totaling 612,075 square feet (180,415 square feet for Building 55 and 431,660 square feet for the remainder of
the Campus), an additional 887,925 square feet may be added to Mann Biomedical Park.
6
55
61
2
gua r d h o u se
1
4
3
Recreation area
Helipa d
M a na ge m e nt
off ice
11
8
9
14
7
10
29
32
33
34
Mann Biomedical Park boundary
Development parcel
NORTH
Site Map
Bldg Major Tenant
1
Data Micro Imaging
Building SF
Bldg Major Tenant
14,292
9
JEM FX
2Bioness
14,250
10
3Bioness
28,725
4
Animal Behavior
7
8
BuiLding SF
Bldg Major Tenant
20,761
33
Storage Facility
Technical Manufacturing
8,384
34
Alfred Mann Foundation
11
Extreme Performance
2,400
41
Management Office
21,612
14
Rayne Corporation
4,226
61Quallion
Aqua Tech Water Management
6,761
29
Boston Scientific
162,669
Wolf Creek Brewing Co.
5,024
32 Sound Chamber 5,208
BuiLding SF
1,955
72,563
5,551
57,279
TOTAL
431,660
55
180,415
Boston Scientific*
*Separate offering
7
R EGIONA L M AP
Investment Advisors
Kevin Shannon
Doug Sonderegger
310.363.4910
818.907.4607
Lic. 00836549
Lic. 00827505
Ken White
Laura Stumm
310.363.4901
310.363.4911
Lic. 01788506
Lic. 01914207
Craig Peters
818.907.4616
Lic. 00906542
Debt & Structured Finance
Val Achtemeier
213.613.3109
Lic. 01868169
Broker Lic. 00409987
2221 Rosecrans Avenue, Suite 100
El Segundo, CA 90245
MAP © 2013 CARTIFACT · DATA © BROADMAP
MAP © 2013 CARTIFACT · DATA © BROADMAP
T 310.363.4900
F 310.363.4912
© 2014 CBRE, Inc. This information has been obtained from sources believed reliable.
We have not verified it and make no guarantee, warranty or representation about it.
Any projections, opinions, assumptions or estimates used are for example only and do
not represent the current or future performance of the property. You and your advisors
should conduct a careful, independent investigation of the property to determine to your
satisfaction the suitability of the property for your needs.

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