251 Redlands

Description

Well located, fully leased, investment property with re-development up-side. A city block at the 10 freeway, Waterman Ave exit. North: Redlands, East: Waterman, South: Caroline, West: Club Center Dr.5 parcels totaling 8.53 acres. 13 driveways on 4 streets. 5 buildings, ranging in age, totaling 118,862 sq. ft.. 21 tenants bring in $1.99 MM per year. Loma Linda University Medical Center, with 5 segregated tenant units, make up 65% of the rental income. Those tenants are on the 3rd year, of 5, 1 year options, after having been in the property for 20 plus years.The eastern 3 acres of the property is underperforming with older buildings and low paying tenants. The area is capable of increased value, through a re-design, with market driven uses, taking advantage of the high traffic Waterman x Redlands Blvd corner, such as fast food drive thru's, car wash, hotel etc.The average price per sq. ft. of the offering, is only $152 / sq. ft. This price per ft., is far below replacement costs, making new competition from new development impossible. 5 million dollars of tenant improvements was put in for Loma Linda 10 years ago.the 50,000 sq. ft., they occupy are, high quality medical space, containing some 75 exam rooms. This space has value and will find a tenant if Loma Linda were to move out. There will also be an option to "condoize" the space and sell it to medical groups far above $152 / sq. ft. purchase price, as a potential exit plan if desired.Finally 12,000 sq. ft. of space on the 2nd floor of the 2195 Club Center building is shell and represents up-side in forming a plan to utilize it through leasing and TI'ing the space.The property has not changed hands in 70 years. All the buildings, with the exception of one, were built by the family that owns the property. This will continue to be a stellar income property for a new owner with the set of skills to manage and modernize this irreplaceable 8.5 acres.