1525 E 17th St
Santa Ana, CA 92705
Professional Bldg · Office Property For Sale

Centrally and conveniently located between the 55, 22, and 5 freeways on East 17th Street and Grand Avenue / Tustin Street, bordering Tustin in the city of Santa Ana, the property is a freestanding multi-tenant building that has been recently renovated with new paint, newly upgraded stairs railings, stacked-stone planters, and newly-paved parking lot. New carpets, paint, and various tenant improvements are completed as needed by the landlord, so the suites require very little maintenance. When the current owners purchased the building in 2006, a new roof and the entire air conditioning system for the entire building were installed. This offering consists of: FIRST PARCEL The first parcel (Orange County, APN: 396-066-09) is a 9,148 SF lot containing a 10,310 SF, two-story, multi-tenant, professional office building with four (4) large suites on the first floor surrounding a courtyard and seven (7) suites on the second floor. Although each suite is configured differently, the walls are non-bearing and can be reconfigured to suit. Each suite has its own restroom, with Suite J and B each containing two (2) restrooms. Additionally, there is a 2000 SF Basement that is not counted in the total square footage of the building and is currently used as a music recording studio. Because the individual suites are on the smaller size (500-1000 SF), they are fairly easy to rent to smaller businesses that may not require a large space. Additionally, the suites can be configured internally or combine with additional suites to provide a larger contiguous office workspace. The larger units on the ground floor are typically larger than 1000 SF each and can be used by a variety of businesses. Current occupants include a National Insurance Brokerage, a Non-Profit Organization, an Attorney, an Accounting Firm, a Direct Marketing Company, and a few other various businesses. Former tenants include Traffic Ticket Attorneys, National Mortgage, Security Consulting, and a Medical Marijuana Dispensary. SECOND PARCEL The second parcel is 8,712 SF with APN: 396-066-08 is contiguous to the first parcel and is currently used by the building tenants as a parking lot for 30 car spaces (3:1000 parking ratio), with 1 of those spaces reserved for handicapped parking and access. The entire asphalt parking lot has just been recently resurfaced and paved. BASEMENT The second parcel is 8,712 SF with APN: 396-066-08 is contiguous to the first parcel and is currently used by the building tenants as a parking lot for 30 car spaces (3:1000 parking ratio), with 1 of those spaces reserved for handicapped parking and access. The entire asphalt parking lot has just been recently resurfaced and paved. FINANCIALS The property generates an actual monthly gross income of $0.97 PSF. Because the landlord currently pays for all tenant utilities, monthly expenses are $0.29 PSF, netting an NOI of $0.88 PSF with a 5% vacancy factor. The landlord is currently requesting a shared utilities contribution from new and existing tenants for all new and existing lease renewals. There is an opportunity to shift the utilities expenses to the tenants by the installation of individual meters for each of the 11 units. The landlord has received a preliminary rough estimate of $50-65k for individual meters, which will eliminate the electricity expense that is currently paid by the landlord. Alternatively, the new landlord could also install solar panels as a way to reduce electricity costs. There are currently four (4) month-to-month tenants that are currently paying much less than market-rate rent and are due for a rent increase. With a modest $1.25 PSF pro-forma rent and assuming the existing expenses are unchanged, and through a shared utilities expense recapture already instituted by the landlord for all new tenants or through a conversion of the basement for a more profitable use, a new owner can reasonably expect to achieve a 6.66% CAP within the first year of ownership. With short-term leases and/or MTM tenants, a new owner can also convert all or part of the building for own use. Detailed financials and tax returns will be provided to qualified buyers.