Catylist ID: #30329981
Prime Office Building Investment
Office for Sale
|Catylist Listing ID:||30329981|
|Property Subtypes:||Office Building|
|Building Size (RSF):||8,776 SF|
|Gross Land Area:||38,768 SF|
|Unit Price:||$347.54 PSF|
|Property Use Type:||Investment|
|Building Name:||Liberty Escrow Building|
|Class of Space:||Class A|
|Sale Terms:||Cash to Seller|
|Average Occupancy Rate:||100|
Overview / Comments
First time sale offering of a quality, two tenant office building strategically located in the strong Palm Springs Office Market.
This two tenant building contain 8,776 s/f feet and a 2,886 s/f basement. Suite "A" is 5,567 s/f with the access to the basement. Suite "B" is 3,209 s/f. Both units are fully built out. (See attached floor plans)
Suite "A" has 5 production offices, a conference room, and 2 executive offices. There is both a staff and public restroom. The reception area is spacious with more production space adjacent to the reception area. The staff kitchen is spacious with all amenities: range, dishwasher, refrigerator and microwave oven. Ample storage space plus a computer server room are on the first floor.
Suite "B" has two standard offices and an executive office plus two conference rooms. Break room area, two restrooms and an inviting reception area. There are 14 work stations for staff Realtors.
Subject property is located on North Sunrise Way one block north of Tahquitz Canyon Way. Tahquitz and Sunrise is one of 2 or 3 major intersections in the City of Palm Springs. According to the City of Palm Springs Engineering Department there is about 46,157 cars per day going north or south on Sunrise Way. The building gets excellent exposure from this traffic flow. In the immediate area is Frontier Communications, Eisenhower Medical Building, and major retailers including Rite Aid Pharmacy and the 99 cent store. Easy access to the Riverside Court House, Palm Springs City Hall, and the Palm Springs International Airport just minutes east of the building location. Just west is downtown Palm Springs with all types of services.
The Palm Springs Office market has been strong in recent years. Recent prices on Palm Canyon Drive, the city's main street have moved about $400 s/f. Strong demand and limited building availability account for the pricing. There have been significant remodels of older office buildings, but no recent construction. Sale Comps are limited. There are three recent sales (see brochure) with one building just above $400 s/f and two at $246.05 and $209.25. The two lower priced sales require significant improvements which will drive the cost much higher. There are three buildings on the market with asking prices from $547 to $311 which reflect values in this market. Pricing on the subject property reflects the off Palm Canyon Market. The building is newer, well located and offers an investor or user a quality property.
The Seller's occupy Suite "A" and offer a number of options to the buyer. First, they could vacate and a buyer could occupy the space. Or, it may be possible to relocate the tenant in Suite "B" to the larger space and a buyer could occupy the smaller space.
The Seller would also consider a 3 year lease in their existing space at $1.45 s/f NNN with the following results:
Suite "A" 5567 s/f @ $1.45 monthly = $ 8,072
Suite "B" 3209 s/f @ $1.30 monthly = $ 4,172*
Projected Monthly Income = $12,244 x 12 months = $146,930
*Existing lease is for 5 years at $1.30 s/f with annual COL
Leases are NNN, but allowing for 5% owner's expenses the projected net income is $139,583
CAP rates vary but the following demonstrates the buildings value:
4% CAP = $3,489,575
5% CAP = $2,791,660
Based on location, the current resale market, building condition and flexibility, and projected income the Liberty Escrow Building offers a quality investment to an investor or owner user.
Attachments & Media
|Nearest MSA:||Riverside-San Bernardino-Ontario|
|Taxing Authority:||City of Palm Springs/Riverside County|
|Property Located Between:||Tahquitz Canyon and Amado Rd.|
|Highway Access:||I-10 is about 10 minutes from the site offering direct access to Los Angeles or Phoenix, and the high desert communities of 29 Palms, Yucca Valley and Morongo Valley. State Highway 111 is 3 minutes away to the south and offers direct access to many of the Coachella Valley cities.|
|Airports:||Minutes to Palm Springs International Airport|
|Site Description:||Grade level site.|
|Area Description:||Sunrise Way is a major north south street with commercial and multi residential development. The area around the site is primarily residential.|
|Total Number of Buildings:||1|
|Number of Stories:||1|
|Parking Description:||Parking lots at each end of the building provide easy access to tenants.|
|Total Parking Spaces:||46|
|Interior Description:||Two offices. Both built out for tenant's use. Suite A has custom cabinet work throughout with built in filing cabinets, desks,etc. Suite B is more open with work stations for real estate agents with office in front and rear.|
|Proximity:||1 mile||3 miles||5 miles|
John StilesStiles & Associates
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