VENUE Y ROAD VENUE€¦ · venue. venue tion drive. y road venue. r&d, manufacturing, medical, office and educational uses allowed long-term ground lease opportunities for build-to-suits

RED HILL AVENUE

ARMSTRONG AVENUE

VICTORY ROAD

INNOVATION DRIVE

VALENCIA AVENUE

R&D, MANUFACTURING, MEDICAL, OFFICE AND EDUCATIONAL USES ALLOWEDLONG-TERM GROUND LEASE OPPORTUNITIES FOR BUILD-TO-SUITS

LAND AVAILABLE-CENTRAL ORANGE COUNTY 2.0-55.8 Acres, Tustin, California

OFFERING MEMORANDUM

BELL AVENUE

Due Diligence information available separately with a signed Non-Disclosure Agreement

NAI Capital - Orange County 1920 Main Street Suite 100 Irvine, 92614

No warranty, express or implied, is made as to the accuracy of the information contained herein. this information is sub-mitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. NAI Capital Cal DRE #01990696

Kirby GreenleeSenior Vice [email protected] DRE Lic #829035

Mariko BeaverSenior Vice [email protected] DRE Lic #01226745

I EXECUTIVE SUMMARY (Page 3)A. Opportunity OverviewB. Offering Highlights

I I THE OFFERING (Page 5)A. ATEP Introduction & Vision Statement

• Maps• Aerials • Conceptual Master Plan

B. Project Description • Site Plan

C. Existing Entitlements/Development StandardsD. Allowed Uses

I I I AREA OVERVIEW (Page 15)A. Los Angeles CountyB. Orange CountyC. Demographics D. Transportation OverviewE. Retail Trade Area MapF. Tustin Legacy G. Market Overview

TABLE OF CONTENTSLAND AVAILABLE-CENTRAL ORANGE COUNTY 2.0-55.8 Acres, Tustin, California

David Knowlton, SIOR, CCIMExecutive Vice [email protected] DRE Lic #00893394

CONTACT INFORMATION

OFFERING MEMORANDUM

N A I C A P I TA L | A T E P | 3

The purpose of ATEP is to develop a vibrant commercial/education park with a focus on advanced technology and work force development, and to attract a variety of educational and commercial uses including R&D companies, high-tech manufacturing, general office, corporate headquarters, medically-oriented facilities, educational and other uses complementary to ATEP’s mission.

A. OPPORTUNITY OVERVIEWThe South Orange County Community College District (“SOCCCD”) is offering land on a long-term ground lease basis for build-to-suit opportunities within the Advanced Technology & Education Park (“ATEP”).

I. EXECUTIVE SUMMARY

• 55.8 Acres, Divisible to 2 Acres

• Development Agreement Allows 1.7- Million Square Feet of Buildable Space

• Central Orange County Location; Close to I-5, CA-55 and I-405 Freeways and 261 toll way

• Close Proximity to World Class Educational Institutions

• Adjacent to Parks including the New 31.5 Acre Veterans Sports Park

• Minutes from Orange County John Wayne Airport, Metrolink Rail Station and the District Shopping & Entertainment Center

• Part of Tustin Legacy; a 1,606-Acre Mixed-Use Community

• Vibrant Economic/Business Environment

• Minimum Building Size of 35,000 SF

• Excellent Demographics

• Gateway to the Pacific Rim

HIGHLIGHTS:

O P P O R T U N I T Y O V E R V I E W


I. EXECUTIVE SUMMARY

B. OFFERING HIGHLIGHTSPROPERTY:• Site is rough graded with infrastructure in place• Level, clear, well-shaped parcels • Site surrounded by four major arterials• Entitlement path through the City of Tustin is

defined and streamlined

STAGES: • Site delivery will be in (2) stages:• Stage 1- 24.47 acres in four (4) sections from

2.62 to 10.04 contiguous acres - Available Now• Stage 2- 31.3 acres (divisible) for future

development : estimated delivery TBD

DEVELOPMENT AGREEMENT: • The approved Development Agreement with

the City of Tustin allows for a wide variety of commercial and educational uses including, but not limited to, R&D companies, high-tech manufacturing, general office, corporate headquarters, medically-oriented facilities, education and other ancillary uses

• Up to 10% of buildable area for supporting retail uses is allowed

• Maximum Building Height: Six (6) stories

GROUND LEASE TERMS:• Time Period: 55+ years• Base Year Ground Lease Rate: $118,000/

acre/year to $140,000/acre/year • Minimum Lot Size: Two (2) acres • Minimum Building Size: 35,000 square feet• Fee Conversion: Possible ground lease

conversion to fee ownership after April 2034

O F F E R I N G H I G H L I G H T S


ATEP Purpose: To develop a vibrant environment with a focus on advanced technology and workforce development by building a strategic educational partnership with public/private industry that will foster synergistic collaborations between educational institutions and emerging technology businesses. It is envisioned as an environmentally sustainable campus with a focus on seeking qualified certifications through the Leadership in Energy and Environmental Design (LEED) program.

ATEP Vision: As the premier center of career-technical education in Orange County, ATEP will prepare students in current and emerging technological careers for a globally competitive economy.

ATEP Mission: To offer applied education and training programs in current and emerging technological careers driven by innovative business, industry and education partnerships.

II. THE OFFERING

A. ATEP INTRODUCTION AND VISION STATEMENT

The District is seeking educational institutions and private enterprise companies interested in developing facilities with a minimum size of 35,000 square feet on a long-term ground lease basis. Ground Lessees will be responsible for financing and directing the construction of their own proposed building(s) and associated improvements.

AT E P I N T R O D U C T I O N A N D V I S I O N S TAT E M E N T


10 MILES

20 MILES

30 MILES

R E G I O N A L M A P

II. THE OFFERING


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Irvine

Laguna Niguel

La Habra

TustinSeal Beach

Fullerton

Costa Mesa

San Clemente

Santa AnaEdinger Ave

Jam

bore

e Rd

Jam

bore

e Rd

Irvine Center Dr

Cal StateFullerton

IrvineMeadowsAmphitheatre

Irvine Blvd

Mar

guer

ite P

kwy

Antonio P

kwy

La Paz Rd

Oso Pkwy

Warner Ave

Harb

or Blvd

Main S

t

Westminster Ave

Chapman Ave

La Palma Ave

Chapman Ave

Imperial Hwy

Beach B

lvd

Valley View

St

Euclid S

t

Brea

Rancho Santa MargaritaLake

Forest

VillaPark

DanaPoint

AlisoViejo

LagunaBeach

San Juan Capistrano

Garden Grove

Cypress

Yorba LindaPlacentia

Buena Park

Euclid S

t

DisneylandPark and

Resort

Knott'sBerryFarm

Seal Beach NationalWildlife Refuge

GoldenwestCollege

OrangeCoast

College

Riverside County

San DiegoCounty

San Bernardino County

San DiegoCounty

SouthcoastPlaza

The MarketPlace

NewportCenter

Laguna CoastWilderness

Park

AngelStadium

Cal StateFullerton

Pacific Ocean

The Outletsat Orange

ChapmanUniversity

Los AngelesCounty

Los AngelesCounty

ClevelandNationalForest

Riverside County

San Bernardino County

NewportBeach

Huntington Beach

Anaheim

Westminster

Universityof California

Irvine

Katella Ave

Mission Viejo

FoothillRanch

TustinFoothills

LagunaHills

Fountain Valley

OrangeCounty

Orange

10 Miles

5 Miles

20 Miles

II. THE OFFERING

C O U N T Y M A P

N A I C A P I TA L | A T E P | 8L O C A L M A P

II. THE OFFERING


RED HILL AVENUE

ARMSTRONG AVENUE

BELL AVENUE

INNOVATION DRIVE12

3

45

VALENCIA AVENUE

II. THE OFFERING

A E R I A L

VICTORY ROAD

View Corridor

N A I C A P I TA L | A T E P | 1 0

II. THE OFFERINGConceptual Master Plan

VETERANS SPORT PARK

ORANGE COUNTY ANIMAL SHELTER

RED HILL AVENUE

VICTORY R

OAD

ARMSTRONG AVENUE

VALENCIA AVENUE

C O N C E P T U A L M A S T E R P L A N


Stage 1

Stage 2

Note: Acreages are approximate

Future

Saddleback

Building

IVC’s

IDEA

Building

Orange County Rescue Mission

(not a part)

Orange CountyAnimal Care Facility

(not a part)

Victory Road

Arm

stro

ng A

venu

eRed

Hill

Aven

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Lans

dow

ne R

oad

Inno

vatio

n D

rive

Valencia Avenue

Hope Drive

College Drive

Bell Avenue

View Corridor

II. THE OFFERING

B. PROJECT DESCRIPTION SITE PLAN:

STAGE 1: Available Now

Comprised of 24.47 acres and divided into four (4) sections which are divisible to two (2) acres.

• Section 1: 10.0 acres at SEC of Red Hill Avenue and Victory Road

• Section 2: 8.0 acres at NEC of Red Hill Avenue and Victory Road (approximately 3.5 acres is currently in lease negotiations)

• Section 3: 2.6 acres at NEC of Victory Road and the Roundabout

• Section 4: 3.8 acres at SEC of Valencia Avenue and Lansdowne Road

The infrastructure for Stage 1, including street improvements and all utilities, is finished.

STAGE 2: Availability TBD

Comprised of 31.3 acres, divisible to two (2) acres.

• Section 5: 31.3 acres at the SWC of Valencia Avenue & Armstrong Avenue

IVC & Saddleback College Buildings

In the heart of the project is Irvine Val-ley College’s IDEA (Integrated Design, En-gineering and Automation) Building. The IDEA Building, the first completed facility at ATEP, is a LEED gold equivalent 32,492 square foot career technical education institute. This $17.7 million facility serves IVC’s students, professionals from pri-vate industry and residents of the com-munity. With a focus on career technical education, the building includes class-rooms, specialized teaching labs, a cer-tified testing center, Economic & Work-force Development offices and a student resource center. It trains individuals to enter and keep pace with the country’s rapidly evolving high-tech workplace.

Planned: Saddleback College is in the planning stage to develop its approxi-mately 30,000 square foot educational facility focusing on the allied health field.

Stage 1

Stage 2


P R E O J E C T D E S C R I P T I O N

Section 1

Section 2

Section 3

Section 5

Section 4


II. THE OFFERING

B. PROJECT DESCRIPTION (CONTINUED)

P R O J E C T D E S C R I P T I O N

Circulation:Visibility and circulation are excellent with Red Hill Avenue bordering the site to the west, Valencia Avenue to the north, Armstrong Avenue to the east and Victory Road to the south. In-ternal roadways, roundabouts and pe-destrian-friendly walkways will provide seamless access across the project.

Infrastructure Status and Fee:The District is responsible for the de-sign, installation and construction of on-site horizontal improvements for the roadways, drives and sidewalks in the common areas. The existing De-velopment Agreement assigns a Back-bone Infrastructure Fee (“fair share contribution”) of $23.14 per building square foot. This fee increases annu-ally by 3% on the anniversary date of February 7. This is a one-time fee to the City of Tustin which is due prior to issuance of building permits.

Note: Approved Educational Users are exempt from paying this fee.

SITE PLAN:

Stage 1

Stage 2


Inn

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Victory Road

Valencia Avenue

SECTION 5

SECTION 4

SECTION 2

SECTION 3

Future

Saddleback

Building

IVC’s

IDEA

Building

College Drive

SECTION 1

View Corridor


C. EXISTING ENTITLEMENTS/DEVELOPMENT STANDARDS

ATEP’s development is fully outlined under a Development Agreement with the City of Tustin that defines permitted uses. Development standards not specifically provided for in the Development Agreement are subject to the Tustin Legacy Specific Plan and the District’s Architectural Guidelines for ATEP which are in development.

Maximum Density: The maximum developable building area is dictated by an educational use versus commercial use as defined in the Development Agreement. Examples of maximum developable area are:

• 100% Educational = Approximately 1,711,000 buildable square feet, or,

• 51% Educational & 49% Commercial= Approximately 1,087,000 buildable square feet

Maximum Building Height: Six (6) stories

Maximum Floor Area Ratio (FAR): The FAR for the entire site is 0.38, however, density may be allocated as required to create higher density areas within the overall planning area.

II. THE OFFERING

E X I S T I N G E N T I T L E M E N T S / D E V E L O P M E N T S TA N D A R D S


D. ALLOWED USES

1. Public and private non-profit or for-profit institutions (extension and/or advanced degree opportunities), religious-affiliated institutions, adult education or continuing education with accreditation by Western Association of Schools and Colleges and/or compa-rable regional and professional accreditation

2. Non-traditional advanced education3. Workforce centers or technical training 4. Education institutions with an emphasis on career-

technical, high-tech or healthcare 5. Food services for educational users 6. Minor supportive retail uses up to 10% of

educational square footage

PUBLIC-PRIVATE PARTNERSHIP

ATEP’s focus is to join with Science, Technology, Edu-cation and Math (“S.T.E.M.”)-oriented corporate users focused on emerging technology, design, hardware and software who could benefit from the synergistic inter-action with ATEP’s higher education programs and stu-dents. Desired non-educational uses include R&D compa-nies, high-tech manufacturing, general office, corporate headquarters, medical-oriented facilities and other uses complementary to ATEP’s mission.

The District is seeking to provide synergistic collabora-tions which allow internship opportunities for students and workforce development. Private enterprise part-ners will be selected based on the following criteria:

• Commercial partners who will provide services, re-sources or opportunities for students and the District consistent with the vision and mission of ATEP

• Commercial partners who provide internships, part-time jobs, collaborations or use of equipment, soft-ware and other learning resources

• Must have a reputation consistent with ATEP’s vision, mission and role within the District, Irvine Valley Col-lege, Saddleback College and the Tustin Legacy Mas-ter Plan

• Commercial partners with an emphasis in career-tech-nical, high-tech and healthcare

The goal for the District is to attract commercial and ed-ucational partners to ATEP who can benefit from the col-laborative working and learning environments supported by the ATEP Vision of a mutually beneficial synergy be-tween public and private uses.

EDUCATIONAL:COMMERCIAL (NOT ALL–INCLUSIVE):

Some of the Private Enterprise uses that may complement ATEP are listed below (not all-inclusive):

1. Research and development (R & D)2. Manufacturing3. Medical offices/healthcare centers4. General office/corporate headquarters5. Medical/dental clinics6. Auto research, design and development7. Biomedical/biotech, aerospace,

healthcare and tourism8. Communication businesses9. Computer technology, business/

financial services10. Data storage, retrieval, send-

receive operations11. Electronic equipment testing12. Experimental prototype assembly and

testing facilities13. Information technology14. Government facilities15. Industrial/commercial incubator

(flex) buildings16. Motion picture and recording studios17. Precision machine shops18. Science laboratories19. Simulation development uses20. Software design uses21. Technology exchange/transfer service

II. THE OFFERING

A L L O W E D U S E S


A. LOS ANGELES COUNTY

Los Angeles County has grown steadily over the past several decades attracting new residents due to its employment opportunities and prime location.

According to Moody’s Analytics, the county’s population is projected to grow to 10.5 million people by 2020, equating to a 3.4% increase over the next five years. Southern California Association of Governments (SCAG) forecasts that by 2035 Los Angeles County will grow to 11.3 million residents, increasing 9.1% over 2020.

The growth of the Greater Los Angeles Region can be attributed to its climate, the availability of land and many booming industries such as oil, automobile, entertainment and aerospace which make it easy for employers to attract

employees from around the world. Factors affecting continued growth and economic success in the Los Angeles area include:

• The area’s economy is diverse with an emphasis on aerospace, business, services, entertainment, technology, tourism and trade

• The ports of Long Beach and San Pedro provide deep water shipping access

• Five international airports provide air freight and passenger service, and the area is served by extensive freeway and rail systems

• The Los Angeles Basin is strategically situated for transacting business in two growing trade areas; the Pacific Rim and Mexico

L O S A N G E L E S C O U N T Y

III. AREA OVERVIEW

III. AREA OVERVIEW

B. ORANGE COUNTY

From 1990 to 2015, the population of Orange County grew 30.7% from 2.4 million to an estimated 3.2 million residents. According to California’s Department of Finance, the region’s population is projected to grow to 3.3 million people by 2020, equating to a nearly 3.0% increase over the next five years. The DOF forecasts that by 2035 Orange County will grow to 3.4 million residents, increasing 8.2% over 2015.

Over three million Orange County residents enjoy a nearly perfect climate in which parks and beaches provide abundant opportunities for outdoor activities. Orange County is the second most densely populated county in the state and is home to exciting professional sports, a wide range of tourist attractions and quality venues for the visual and performing arts. Orange County boasts a thriving business economy and a well-educated work force. The County is a regional service provider and planning agency whose core businesses include public safety, public health, environmental protection, regional planning, public assistance, social services and aviation.

• There are more than 40 major colleges and universities in Southern California

• Education levels are among the highest in the nation• Orange County is the headquarters for many Fortune

500 companies• The state of California had the highest number of private

sector job gains in the country• Orange County’s largest employer, Disneyland, employs

29,000 people

O R A N G E C O U N T Y

Strong infrastructure contributes to Orange County’s successful and positive business climate. Centrally located in Southern California, Orange County has close proximity to the ports of Los Angeles and Long Beach, the largest container ports in the world. An abundance of passenger and cargo airports exists, including LAX, Ontario and John Wayne Airport. Toll roads in South County and improvements to the existing freeway system continue to fuel the growth of Orange County.

O R A N G E C O U N T Y N A I C A P I TA L | A T E P | 1 6

III. AREA OVERVIEW

SOURCE: APPLIED GEOGRAPHIC SOLUTIONS

3-MILE 5-MILE 10-MILE

POPULATION 238,259 644,945 1,715,341

HOUSEHOLDS 71,718 197,548 551,420

AVERAGE HOUSEHOLD SIZE 4.0 3.9 3.7

MEDIAN AGE 33.2 34.5 36.7

MEDIAN HH INCOME $85,821 $92,447 $92,016

AVERAGE HH INCOME $105,887 $118,898 $121,168

PER CAPITA INCOME $31,925 $36,578 $39,125

C. 2018 DEMOGRAPHICS

N A I C A P I TA L | A T E P | 1 72 0 1 8 D E M O G R A P H I C S


D. TRANSPORTATION OVERVIEW

John Wayne Airport, Orange County (SNA) http://www.ocair.com/

Los Angeles International Airport http://www.lawa.org/welcomeLAX.aspx

Long Beach Airport http://www.lgb.org/

Ontario International Airport https:www.flyontario.com

Metrolink, Tustin Station http://www.metrolinktrains.com/stations/detail/station_id/ 130.html

Amtrak https://www.amtrak.com/california-train-bus-stations

III. AREA OVERVIEW

30 Miles

20 Miles

10 Miles

T R A N S P O R TAT I O N O V E R V I E W


ATEP offers an excellent selection of retail amenities. The District, located at the south end of Tustin Legacy, is a one million square foot regional lifestyle center with a diverse mix of retail outlets for dining, shopping and entertainment. The new addition to the center is the Union Market, an industrial-chic multi-tenant marketplace with an open floor plan offering food stalls, restaurants and boutiques.

Located just one mile down Valencia from ATEP is the Village at the Tustin Legacy, a community shopping center offering a variety of retail services from grocery shopping to dining. The center is anchored by Stater Bros. and has several restaurants, fitness options and medical services.

Three miles to the north is the Market Place, an outdoor shopping center that borders Tustin and Irvine. This Irvine Company property has more than 120 stores and restaurants that offer best-in-class shopping and dining. It’s directly off the 5 Freeway and Jamboree Road for quick; easy access from ATEP.

South Coast Plaza, which is located five miles away, is the largest mall on the West Coast and has retail sales over $1.5 billion annually, the highest in the United States. This mall has over 250 stores and restaurants, including ultra-luxury brands as well as popular department stores.

555

III. AREA OVERVIEW

E. RETAIL TRADE AREA MAP

R E TA I L T R A D E A R E A M A P


Tustin Legacy is a 1,606-acre multi-use master planned community on the former Marine Corps Air Station in the City of Tustin and a small Portion of the City of Irvine. The development project includes parks, commercial, retail, residential, office entertainment, educational and government uses as well as direct access to a Metrolink Train Station and a regional bus hub.

Veterans Sports Park, located adjacent to ATEP, includes more than 20 sports fields and courts, and a skate plaza

Over 3,400 newer dwelling units comprised of single family homes, townhomes & apartments, with more on the way

State-of-the-Art mixed-use office, industrial & retail projects round out the master planned Tustin Legacy community

The District at Tustin Legacy consists of a one million square foot shopping and entertainment lifestyle center

III. AREA OVERVIEW

F. TUSTIN LEGACY

T U S T I N L E G A C Y


A summary of pertinent projects is outlined as follows:

EDUCATIONAL1. Heritage Elementary School2. Irvine Valley College “IDEA” Campus3. Saddleback College – In Planning4. Legacy Magnet School (6-12) – In Planning

OFFICE 5. Flight6. Future Office

PUBLIC AGENCIES7. Orange County Sheriff’s Regional Training Academy8. Orange County Rescue Mission9. SSA Tustin Family Campus10. Tustin Army Reserve 11. Orange County Animal Shelter

RETAIL/ ENTERTAINMENT12. The District –1M SF Regional Lifestyle Center13. The Village – 112,000 SF Neighborhood Retail Center

PARKS & PUBLIC SPACE 14. Victory Park15. Tustin Legacy Park – Phase 1 completed16. Veterans Sports Park – under construction17. Orange County Regional Park – In planning

MIXED-USE 18. Community Core (33 acres) – In planning19. Future Mixed Use

RESIDENTIAL 20. Multiple neighborhoods offering choices of single

family homes, apartments & townhomes, currently 3.456 units with additional units in planning

1

16

11

710

6

155

19

12

18

19

17

4

20 13

20

14

20

8

9

III. AREA OVERVIEW

F. TUSTIN LEGACY (CONTINUED)

T U S T I N L E G A C Y


The Orange County of fice, retail and industrial markets have strengthened at the beginning of 2018. Each market segment is highlighted below:

OFFICE

• 155.6M SF countywide

• 9.7% vacancy rate with an average countywide asking rent of $2.69/SF/month FSG

• Average asking rent for office space in the Central Submarket is $2.20/SF/month FSG

• More than 1.0M SF is under construction across the county while there is no construction underway in the Central submarket

INDUSTRIAL


• 2.3% vacancy rate with an average countywide asking rent of $0.85/SF/month NNN

• Average industrial asking rent within the Airport submarket is $0.82/SF/month NNN

• Construction is extremely limited in Orange County with just under 800,000 SF total

RETAIL


• 3.7% vacancy rate with an average countywide asking rent of $2.03/SF/month NNN

• Average asking rent for retail space in the Central submarket is $1.91/SF/month NNN

• Just under 400,000 SF of retail space are under construction in Orange County

G. MARKET OVERVIEW

III. AREA OVERVIEW

M A R K E T O V E R V I E W

Due Diligence information available separately with a signed Non-Disclosure Agreement

NAI Capital - Orange County 1920 Main Street Suite 100

Irvine, 92614

No warranty, express or implied, is made as to the accuracy of the information contained herein. this information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. NAI Capital Cal DRE #01990696

Kirby GreenleeSenior Vice President

[email protected]

Cal DRE Lic #829035

Mariko BeaverSenior Vice President

[email protected] DRE Lic #01226745

LAND AVAILABLE-CENTRAL ORANGE COUNTY 2.0-55.8 Acres, Tustin, California

David Knowlton, SIOR, CCIMExecutive Vice President

[email protected] DRE Lic #00893394

CONTACT INFORMATION

Documents

VENUE Y ROAD VENUE€¦ · venue. venue tion drive. y road venue. r&d, manufacturing, medical, office and educational uses allowed long-term ground lease opportunities for build-to-suits