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SOUTH LATHROP COMMERCE CENTERL A T H R O P, C A L I F O R N I A
A CBRE NATIONAL PARTNERS INDUSTRIAL INVESTMENT OPPORTUNITY
4.2 MSF INDUSTRIAL MASTER PLAN ON ±203 NET ACRES
LOCATED AT JUNCTION I-5 AND US-120 | LATHROP, CALIFORNIA
LAST REMAINING LARGE SCALE DEVELOPMENT SITE FOR SALE IN A CENTRAL VALLEY CORE LOGISTICS LOCATION
120
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S O U T H L A T H R O P C O M M E R C E C E N T E R
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INVESTMENT THESISUnique opportunity to acquire one of the last remaining large scale master-planned development sites in a core location in Northern California.
PROPERTY SUMMARY
Address Guthmiller Road and US-120, Lathrop, CA
Proposed Square Footage 4,180,759 SF
Land Size ±203.04 Net Acres / ±244.78 Gross Acres
CONSULTANTS
Architect MacDavid Aubort & Associates
Civil Engineer McKay and Somps
Construction Site Plan Consultant Murow Construction ManagementPRELIMINARY TIMELINE
First Submittal of Improvement Plans December 2016
401 Water Quality Certification Expect Issuance February 2017
404 Permit - Letter of Permission Expect Issuance May 2017
Finalization of Improvement Plans End of August 2017
Start of Vertical Construction October 2017
Delivery Q2 2018
THE OFFERING
CBRE, Inc. is offering an excellent opportunity to purchase South Lathrop Commerce Center
(SLCC), a ±203.04 net acre (±244.78 gross acre) entitled industrial land site in the City of Lathrop.
The site provides direct freeway frontage at the intersection of I-5 and US-120 and visibility to key
transportation arteries, and is easily accessed off the Yosemite Avenue off-ramp.
Lathrop is centrally located within San Joaquin County, equidistant between Tracy (southwest) and
Stockton (north), and lies approximately 60 miles from the Port of Oakland. Tesla, UPS, Clorox,
Home Depot, Del Monte, Ghirardelli, Deere, SSI/SaveMart, JC Penney have all selected Lathrop as
the location for their distribution centers.
South Lathrop Commerce Center has an approved Development Agreement (DA) and adopted
Environmental Impact Report (EIR), a Vesting Tentative Map, full Site Plan approvals, and was
annexed into the City on May 12, 2016. This site is positioned to be the premier, master-planned,
industrial investment opportunity in Northern CA providing Class A, Big Box/E-Commerce/Logistics
and Light Industrial/ Distribution product.
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5
E X E C U T I V E S U M M A R Y
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PROPERTY HIGHLIGHTS• Master Planned project of ±4.2 million SF provides both Large Logistics/E-Commerce and Light
Industrial/Distribution building profiles.
— Three (3) 1 million plus square foot buildings and three (3) buildings in the 282,000 to
450,000 square foot range.
• Site Plan Review and Architectural package fully approved.
• Low building/impact fees and Development Agreement provide cost advantage and controls
when compared to other submarkets.
• Approved Vesting Tentative Map subdividing site into 8 parcels.
• Possible Mello-Roos financing available to enhance investment returns.
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
$5.35
Lathrop
$1.60
Patterson
$5.75
Stockton
$8.75
West Tracy
$9.50
Manteca
$12.50
NE IndustrialArea Tracy
$14.57
WestSacramento
$19.00
Livermore
South Lathrop
Commerce Center
LOCATION HIGHLIGHTS• ±203.04 net acres (±244.78 gross acres) of entitled land located in the center of San Joaquin
County, 60 miles from the Port of Oakland, with close proximity to both UP (6 miles - Manteca)
and BNSF (14 miles - Stockton), Intermodal facilities, plus new Fed Ex (16 miles - Tracy) and UPS
(5 miles - Lathrop) Ground Hubs.
• Visibility and access at confluence of Interstate 5 and US Highway 120 off Yosemite Road exit.
• Adjacent to the established Crossroads Commerce Center, home to such companies as Home
Depot, Tesla, Del Monte, In N Out Burger, ER Carpenter and others.
• Institutional ownership within the Lathrop/Manteca submarket includes Prologis, DCT, Duke,
LBA Realty, CenterPoint, Clarion, Exeter/ADIA, UBS, VEREIT, Panattoni/STRS, Buzz Oates and
others.
• Strategic location servicing Northern and Central California, San Francisco Bay Area and
Western States with excellent freeway access.
ELEVATIONNORCAL DEVELOPMENT IMPACT FEE SCHEDULE
Low impact fees of $5.35/building SF (BSF) compared
to $8.75-$12.50/BSF in Tracy and $5.75/BSF in Stockton
provides a competitive advantage.
Note: The SB5 fee ($0.60 PSF) is included for Lathrop and Manteca
S O U T H L A T H R O P C O M M E R C E C E N T E R
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• Strong net absorption has driven the vacancy rate to only 1.9% for all of the Central Valley.
• The market recorded its 16th consecutive quarter of positive net absorption at 599,852 SF,
bringing the 2016 total to 3.9 MSF. The primary limiting factor of absorption is a lack of product.
Given the pre-leasing of under construction and proposed projects, higher net absorption is
expected to increase significantly in 2017.
• Measured new supply in the Central Valley given the largely institutional ownership has kept the
market tight. There are currently no existing high-cube buildings available over 500,000 SF and
3.9 MSF in total under construction (Q4 2016), asking lease rates for Class A high-cube product
rose slightly for the third consecutive quarter to $0.40.
• In recent years, one of the primary drivers of demand has been from e-commerce related
companies. This trend continued into 2016. In fact, FedEx and UPS are establishing new
distribution hubs in the region.
• Market demand is diversified with users in the distribution, manufacturing, food and beverage,
and e-commerce industries.
ACTIVE REQUIREMENTS - TIMING
CENTRAL VALLEY REQUIREMENTS BY SIZERequirements by Size # of Requirements SF
<100,000 Sq. Ft. 3 215,000
100,000 Sq. Ft.-199,999 Sq. Ft. 10 1,275,000
200,000 Sq. Ft.-499,999 Sq. Ft. 13 3,585,000
500,000 Sq. Ft.-999,999 Sq. Ft. 10 6,720,000
1,000,000 Sq. Ft.+ 2 2,000,000
GRAND TOTAL 38 13,795,000
STRONG CENTRAL VALLEY INDUSTRIAL MARKET DYNAMICS
4
92 MSFMARKET BASE
1.9%OVERALL VACANCY
5.1 MSFGROSS ACTIVITY
3.9 MSFUNDER CONSTRUCTION
3.8%AVAILABILITY RATE
$0.40CLASS A AVERAGE RENT/SF
3.9 MSF2016 TOTAL ABSORPTION
CENTRAL VALLEY
DIVERSIFIED TENANT BASE
0% 5%
10% 15% 20% 25% 30% 35% 40%
Distribution Food & Beverage Logistics Energy/Manufacturing
Other
27%22%
35%
9% 7%
With 27% of activity driven by distribution, 35% logistics, 22% food and beverage.
E-commerce is also a large player in this market within the Distribution and
segment as demonstrated by the recent 700,000 SF UPS lease in Lathrop and the
1 MSF Amazon lease in Tracy.
8,140,000 3,285,000
670,000 800,000
Q1 2017
Q2 2017
Q3 2017
Q4 2017
ACTIVE REQUIREMENTS IN THE MARKET• 38 Active Requirements totaling 13.8 Million SF and 155 Acres
• Only 3.8 Million SF Under Construction
• 1-2% Vacancy
• 24% of the requirements need 500,000 SF+
• 6.5 million SF Net Absorption in 2015; 3.9 Million SF in 2016
E X E C U T I V E S U M M A R Y
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MASTER PLAN
SITE DATA TABLE "A"
Bldg.Land Area
(SF and AC)1st Floor
SFMezz.
SFBuilding
SFF.A.R.
Auto Parking (Req./Prov.)
Trailer Parking (provided)
Dock Doors (provided)
1±2,124,856 SF
(±48.7 AC)1,024,000 3,000 1,027,000 48.3%
514 stalls 0.50/1000
427 stalls 162
2±2,182,356 SF
(±50.1 AC)1,061,000 3,000 1,064,000 48.8%
537 stalls 0.50/1000
406 stalls 193
3±2,197,166 SF
(±50.4 AC)1,017,000 3,000 1,020,000 46.4%
549 stalls 0.54/1000
330 stalls 171
4±728,323 SF (±16.72 AC)
343,750 3,000 346,750 47.6%174 stalls
0.50/1000108 stalls 46
5±925,650 SF (±21.25 AC)
447,000 3,000 450,000 48.6%225 stalls 0.50/1000
126 stalls 53
6±686,070 SF (±15.75 AC)
280,000 3,000 283,000 41.1%173 stalls 0.61/1000
93 stalls 32
Total Net AC
±8,844,422 SF (±203.04 Net AC)
4,180,759 18,000 4,190,750 47.4% 2,072 stalls 1,490 stalls 657
Note: Land and building areas are preliminary and subject to change pending review by civil and governing agencies.
REMAINING ACREAGE
Parcel Land Area (AC)
Parcel A (Storm Water Basin) ±17.55 AC
Parcel B (Open Space) ±5.57 AC
Parcel C (Open Space) ±9.16 AC
Parcel D (Storm Pump Station) ±0.17 AC
Parcel E (Sewer Lift Station) ±0.08 AC
Right of Way (Emergency Vehicle Access) ±8.01 AC
Right of Way (Streets) ±1.20 AC
Subtotal of Remaining Acreage ±41.74 AC
Total Gross Acreage ±244.78 Gross AC
Inte
rsta
te 5
N.A.P.
N.A.P.
N.A.P.
N.A.P.
Existing DevelopmentControlled by
Richland
Not Controlled by Richland
Controlled by Richland
Entitled IndustrialControlled by Richland
Water Quality Detention/
Percolation Basin
Flood Control Retention/Detention Basin
San Joaquin R
iver
S O U T H L A T H R O P C O M M E R C E C E N T E R
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BUILDING 3, 2, & 1
SITE DATA TABLE "A"
Bldg.Land Area
(SF and AC)1st Floor
SFMezz.
SFBuilding
SFF.A.R.
Auto Parking (Req./Prov.)
Trailer Parking (Provided)
Dock Doors (Provided)
1±2,124,856 SF
(±48.78 AC)1,024,000 3,000 1,027,000 48.3%
514 stalls 0.50/1000
427 stalls 162
2±2,182,356 SF
(±50.10 AC)1,061,000 3,000 1,064,000 48.8%
537 stalls 0.50/1000
406 stalls 193
3±2,197,166 SF(±50.44 AC)
1,017,000 3,000 1,020,000 46.4%549 stalls 0.54/1000
330 stalls 171
Total Net Acreage Bldg 1-3
±6,504,379 SF(±149.32 Net AC)
3,102,000 9,000 3,111,000 47.8% 1,600 stalls 1,163 stalls 526
Note: Land and building areas are preliminary and subject to change pending review by civil and governing agencies.
E X E C U T I V E S U M M A R Y
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BUILDING 4-6
SITE DATA TABLE "B"
Bldg.Land Area
(SF and AC)1st Floor
SFMezz.
SFBuilding
SFF.A.R.
Auto Parking (Req./Prov.)
Trailer Parking (Provided)
Dock Doors (Provided)
4±728,323 SF (±16.72 AC)
343,750 3,000 346,750 47.6%174 stalls
0.50/1000108 stalls 46
5±925,650 SF (±21.25 AC)
447,000 3,000 450,000 48.6%225 stalls 0.50/1000
126 stalls 53
6±686,070 SF (±15.75 AC)
280,000 3,000 283,000 41.1%173 stalls 0.61/1000
93 stalls 32
Total Net Acreage Bldg 4-6
± 2,340,043 SF (± 53.72 Net AC)
1,070,750 9,000 1,079,750 46.1% 472 stalls 327 stalls 131
S O U T H L A T H R O P C O M M E R C E C E N T E R
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TRANSPORTATION MAP
E X E C U T I V E S U M M A R Y
9
5680
80
680
680
780
580
80
80
280
280
280
280280
680880
880
880
580
580 580
680
5
5
5
5
205
580
101
101
101
101
88
99
44
44
24
13
131
1
1
37
12
1
35
84
92
82 92
84
17 85
82
23884
237
35
99
99
132
120
33
1212
160
Stockton
Oakland
San Francisco
San Jose
Novato
San Rafael
Woodacre
Skaggs IslandAmericanCanyon
San Pablo
El Cerrito
Berkeley
Concord
Pleasant Hill
AntiochOakley
Arbor
Brentwood Orwood
Bethel Island
Discovery Bay
LincolnVillage
Morada
LodiWoodbridge
Lockeford
Clements
Linden
Atlanta
Lyoth
Tracy
MountainHouse
Altamont
Tassajara
Ulmar
Livermore
MendenhallSprings
Fremont
Sunol
Verona
PleasantonHayward
Dublin
San RamonAlameda
Daly City
San Bruno
San Mateo
Bair Island
Palo Alto
MountainView
La Honda
Loma Mar
Los Gatos
Saratoga
Campbell
Milpitas
Pescadero
San Gregorio
HalfMoon Bay
Pacifica
San Leandro
Danville
Carbona
Vernails
Westley
Patterson
Diablo Grande CrowsLanding
Lathrop
Manteca
Ripon
Salida
Victor
Byron
Pittsburg
Collinsville
Birds Landing
Rio Vista Isleton
Walnut Creek
Vallejo
Benicia
Martinez
Corte MaderaMill Valley
Sausalito
Banta
San Pablo Bay
ones Marine Sanctuary
Suisun Bay
San Pablo Bay NationalWildlife Refuge
amalpais Watershed
Grizzly IslandWildlife Area
Mt Diablo
OaklandInternational
Airport
San FranciscoInternational
Airport
San JoseInternational
Airport
StocktonMetropolitan
Airport
Port of Oakland
Port of Stockton
REGIONAL MAP
9
S O U T H L AT H R O P C O M M E R C E C E N T E R
S O U T H L A T H R O P C O M M E R C E C E N T E R
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SURROUNDING OWNERS / TENANTS AERIAL
CROSSROADS COMMERCE CENTER
HOME DEPOT
NORTH CROSSROADS BUSINESS PARK(FORMER PILKINGTON GLASS)
LATHROP INDUSTRIAL PARK
CROSSROADS LOGISTICS CENTER
BUZZ OATES
TESLA
JCPENNEY
DEL MONTE
CENTERPOINT PROPERTIES
LBA (UNDER CONSTRUCTION - 517,250 SF) UNDER CONSTRUCTION
(3 BLDGS - 559,180 SF)
LBA
UBS GLOBAL ASSET MANAGEMENT
US REALTY ADVISORS
LEGEND
Tenants
Owners
Industrial Parks
TESLA
KRAFT HEINZ
TESLA
MEDLINE
DEEREIN N OUT
SWIFT
PFLUG
EXETER
CLARION
CLARION
CLARION
REYNOLDS & BROWN / JONES DEVELOPMENT
LBA
EXETER
5
120
STRONG INSTITUTIONAL LOCATION - The Central Valley, and specifically the Manteca/Lathrop area, continue to be a hotspot for high quality tenants and institutional investors. This demand is expected to continue given the Central Valley’s strong regional transportation links and proximity to the Port of Oakland and Intermodal facilities.
SOUTH LATHROP COMMERCE CENTER
© 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your respon-
sibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax
and other factors which should be evaluated by your tax, financial and legal advisors. 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. 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. Macintosh HD:Users:jmcvay:Box Sync:Southern California:GLAOC Marketing:Property Marketing:Ontario:Lathrop:Lathrop Commerce Center:BRO:South Lathrop Commerce Center_BRO_V14_JM.indd
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SOUTH LATHROP COMMERCE CENTERL A T H R O P, C A L I F O R N I A
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