LAN MARK PLAZA - f.tlcollect.com · Lan Mark Plaza also offers strong intrinsic value, as it is priced significantly below replacement value at just $127/sf on improvements. Delivered

S H O P P I N G C E N T E R

4 0 0 1 - 4 0 3 1 N M A R K S A V EF R E S N O , C A L I F O R N I A 9 3 7 2 2

LAN MARK PLAZA

400 South Hope Street25th FloorLos Angeles, Ca 90071

© 2015 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 responsibility 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. Lan Mark Plaza OM

ALEX KOZAKOV First Vice President+1 213 613 3031Lic. [email protected]

MAXX COHENAssociate+1 213 613 3117Lic. [email protected]

EXCLUSIVELY LISTED BY:

PRESENTATION FOR REAL ESTATE ADVISORY SERVICES


LAN MARK PLAZA

Table of Contents

Property Summary

Executive Summary

Rent Roll

Income & Expenses

Demographics

Tenant Overview


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4 0 3 1 N M A R K S A V EF R E S N O , C A L I F O R N I A 9 3 7 2 2

LAN MARK PLAZA


LAN MARK PLAZA Property Summ

ary

Property SummaryStable Fresno Shopping Center With Credit Tenants• 98% occupied with over 70% of GLA occupied by national tenants –

Autozone & Family Dollar

• Autozone rent is significantly below market at $4.72/sf/year

• Priced significantly below replacement value at just $127/sf on improvements

• Strong In-place cap rate of 6.53% with upside: average rents for the center are $8.84/sf/year

• Delivered free and clear of debt with the ability to source new financing at today’s historically low rates

• All tenants on triple-net leases including management fee reimbursement: Limited landlord responsibilities

• Two parcels on over 4.25 acres, with Arco gas station pad ground lease

• Professionally managed: Low deferred maintenance & attractive landscaping

• Ability to add value through leasing of vacant unit & collection of scheduled rent increases

Strategic Location With Limited Retail Competition and High Traffic Counts• High traffic location at a signalized intersection with more than 22,000 cars

per day

• Desirable location with excellent visibility: Over 470 feet of frontage along both N Marks Avenue and W Ashlan Avenue

• Great access and parking for customers and tenants: 5 points of ingress and egress and nearly 4 parking spots / 1,000 RSF

• Within one block to several schools and densely surrounded by single family homes

ADDRESS: 4031 N. Marks Ave | Fresno, CA 93722

PRICE: $6,250,000

YEAR 1 NOI: $407,992

YEAR 1 CAP RATE: 6.53%

PROFORMA NOI: $436,212

PROFORMA CAP RATE: 6.98%

GLA: 49,097 SF

LAND AREA: 186,437 SF

OCCUPANCY: 98%

YEAR BUILT: 1984

PARKING: 194 Spaces

PARKING RATIO: 4/1,000 RSF

ZONING: CPD

APN: 424-044-04; 424-044-03

MAJOR TENANTS: Autozone, Family Dollar, Arco

TRAFFIC COUNTS: 22,808 CPD

Property Highlights

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LAN MARK PLAZA

Executive Summary

Executive Summ

ary

CBRE is pleased to offer for sale Lan Mark Plaza, an established shopping center in Fresno, CA.

Lan Mark Plaza offers investors a 98%-occupied shopping center consisting of 49,097 square feet of GLA on over 4.25 acres of land. Over 70% of the shopping center’s GLA is occupied by national tenants, including AutoZone, Family Dollar and Arco. The investment offers a stable in-place cap rate over 6.5%, in addition to strong rental upside, as the average rents across the center are under $9/sf/year. There is also upside through leasing up the vacant unit and in place contractual rent increases.

Lan Mark Plaza also offers strong intrinsic value, as it is priced significantly below replacement value at just $127/sf on improvements. Delivered free and clear of debt, investors have the opportunity to obtain new debt at today’s historically low rates or purchase the asset all cash. The investment offers ease of management, with all tenants on triple-net leases including reimbursement for management fees.

Lan Mark Plaza located at the northwest corner of the signalized intersection of N Marks Avenue and W Ashlan Avenue (more than 22,000 cars per day). With over 470 feet of frontage along both N Marks Avenue and W Ashlan Avenue, the center offers great visibility and benefits from 5 points of ingress and egress. The center offers tenants and customers ample parking of nearly 4 parking spaces per 1,000 RSF, and is just 3 signalized intersections away from Highway 99.

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Rent RollLEASE TERM BASE RENT PROFORMA

Suite Tenant SqFt Pro-Rata Begin End Begin Annually PSF/Yr Annually PSF/Yr Type Rental Increases Options

4001 Martin Oil, Inc (Arco)* 700 1.43% 12/1/78 11/30/18 Current $34,066 $48.67 $34,066 $48.67 NNN 2 x 5 year

option

4003 Al & Gaels Ricos Tacos Shop 160 0.33% 8/1/12 7/31/15 Current $12,979 $81.12 $12,979 $81.12 NNN 4%

Annually N/A

4005 Dan's Liquor 3,000 6.11% 2/15/95 2/28/20 Current $36,000 $12.00 $37,800 $12.60 NNN 2 x 5 year option

3/1/16 $37,800 $12.60

4007 Ashlan Dental Center 2,277 4.64% 6/1/99 8/31/19 Current $31,423 $13.80 $31,423 $13.80 NNN N/A

4009 Medicine Shoppe Pharmacy 1,200 2.44% 12/1/85 12/31/15 Current $17,265 $14.39 $17,265 $14.39 NNN 1 x 3 year

option

4011 Greater Fresno Health Org Inc 4,290 8.74% 6/11/13 12/31/23 Current $59,827 $13.95 $61,621 $14.36 NNN 3%

Annually2 x 5 year

option

1/1/16 $61,621 $14.36

Rent

Rol

l

*Arco is on a separately ground leased parcel

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LAN MARK PLAZA

Rent Roll (Continued)LEASE TERM BASE RENT PROFORMA

Suite Tenant SqFt Pro-Rata Begin End Begin Annually PSF/Yr Annually PSF/Yr Type Rental Increases Options

4015 Mouwefak Mousid 1,518 3.09% 10/1/13 9/30/16 Current $20,038 $13.20 $20,038 $13.20 NNN 1 x 3 year

option

4021 Ann's Donuts 925 1.88% 1/1/05 12/31/17 Current $11,100 $12.00 $11,100 $12.00 NNN 1 x 5 year option

4023 Vacant 937 1.91% Current $0 $0.00 $12,931 $13.80 NNN N/A

4027 Family Dollar 11,914 24.27% 11/14/12 6/30/22 Current $95,000 $7.97 $95,000 $7.97 NNN10%

Every 5 years

6 x 5 year options

7/1/17 $104,500 $8.77

4031 Autozone 22,176 45.17% 11/24/97 10/31/23 Current $104,636 $4.72 $104,636 $4.72 NNN 4 x 5 year options

11/1/18 $111,836 $5.04

Leased 48,160 98.09% $425,928 $8.84 $438,859 $9.11

Vacant 937 1.91% - - - $12,931 $13.80

TOTALS/ AVERAGES 49,097 100% $425,928 $8.84 $451,789 $9.20

Rent Roll

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LAN MARK PLAZA Income &

Expenses

Income & ExpensesCURRENT "IN-PLACE" PER SF PROFORMA RENT PER SF

Gross Revenue

In-Place Rental Revenue $425,928 $8.68 $451,789 $9.20

Reimbursement Revenue 98.09% $190,614 $3.88 $194,323 $3.96

Total Gross Revenue $616,542 $12.56 $646,112 $13.16

Credit Loss / Vacancy Reserve Estimated 5.00% $14,228 $0.29 $15,577 $0.32

Effective Gross Revenue $602,314 $12.27 $630,535 $12.84

Expenses

CAMS

Utilities Actual $29,631 $0.60 $29,631 $0.60

Maintenance Actual $55,379 $1.13 $55,379 $1.13

Total CAMS Actual $85,010 $1.73 $85,010 $1.73

Management Estimated 4.00% $24,500 $0.50 $24,500 $0.50

Insurance Actual $7,900 $0.16 $7,900 $0.16

Property Taxes Estimated 1.230606% $76,913 $1.57 $76,913 $1.57

Total Operating Expenses $194,323 $3.96 $194,323 $3.96

Net Operating Income $407,992 $8.31 $436,212 $8.88

PRICING SUMMARY

PRICE: $6,250,000

YEAR 1 NOI: $407,992

YEAR 1 CAP RATE: 6.53%

PROFORMA NOI: $436,212

PROFORMA CAP RATE: 6.98%

GLA: 49,097

PRICE PER SF: $127.30/SF

Credit Loss/Vacancy Reserve = 5% of Total Gross Revenue, excluding Autozone and Family Dollar rent & reimb.

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LAN MARK PLAZA

Lan Mark Plaza

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LAN MARK PLAZA

DemographicsONE-MILE RADIUS THREE-MILE RADIUS FIVE-MILE RADIUS

POPU

LATI

ON

2015 ESTIMATED POPULATION 20,973 143,436 295,194

2020 PROJECTED POPULATION 21,434 148,467 305,007

2010 CENSUS POPULATION 20,725 139,348 287,227

2000 CENSUS POPULATION 20,213 123,040 258,757

GROWTH 2010-2015 1.20% 2.93% 2.77%

GROWTH 2015-2020 2.20% 3.51% 3.32%

2015 ESTIMATED MEDIAN AGE 30.02 32.77 32.32

2015 ESTIMATED AVERAGE AGE 33.41 35.57 35.32

HO

US

EHO

LDS

2015 ESTIMATED HOUSEHOLDS 7,134 49,134 99,830

2020 PROJECTED HOUSEHOLDS 7,323 50,708 103,075

2010 CENSUS HOUSEHOLDS 7,000 47,978 97,400

2000 CENSUS HOUSEHOLDS 7,020 43,979 90,803

GROWTH 2010-2015 1.92% 2.41% 2.49%

GROWTH 2015-2020 2.64% 3.20% 3.25%

2015 EST. AVERAGE HOUSEHOLD SIZE 3.05 2.90 2.91

INC

OM

E 2015 EST. AVERAGE HOUSEHOLD INCOME $39,597 $55,852 $55,651

2020 PRJ. AVERAGE HOUSEHOLD INCOME $39,238 $55,615 $55,335

2015 EST. MEDIAN HOUSEHOLD INCOME $29,554 $40,535 $39,355

RA

CE

& O

RIG

IN

WHITE POPULATION 10,252 (48.88%) 73,918 (51.53%) 149,547 (50.66%)

AFRICAN AMERICAN POPULATION 2,757 (13.15%) 12,575 (8.77%) 23,814 (8.07%)

ASIAN POPULATION 1,133 (5.40%) 11,908 (8.30%) 28,492 (9.65%)

PACIFIC ISLANDER 50 (0.24%) 312 (0.22%) 597 (0.20%)

AMERICAN INDIAN / ALASKA NATIVE 418 (1.99%) 2,670 (1.86%) 5,412 (1.83%)

OTHER RACE POPULATION 5,186 (24.73%) 33,693 (23.49%) 70,749 (23.97%)

TWO OR MORE RACES POPULATION 1,176 (5.61%) 8,360 (5.83%) 16,582 (5.62%)

Demographics

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Tenant Overview- Autozone & Arco

Autozone is an American store and is the second-largest retailer of aftermarket automotive parts and accessories in the United States,Founded in 1979, AutoZone has over 5,200 stores across the United States, Mexico, and Brazil. The company is based in Memphis, Tennessee.

Today, Auto Shack is AutoZone - a Fortune 500 company and the leading auto parts retailer in the United States with more than $8.1 billion in annual sales. AutoZone has its headquarters in its Store Support Center (SSC), a 270,000 square feet (25,000 m2) As of 2013 there are over 1,200 employees there. Today, AutoZone serves customers in 48 states, Mexico and Puerto Rico and employs more than 65,000 employees.

ARCO is an American oil company with operations in the United States as well as in Indonesia, the North Sea, and the South China Sea. It has more than 1,300 gas stations in the western part of the United States.

ARCO is known for its low-priced gasoline compared to other national brands, mainly due to an early 1980s decision to emphasize cost cutting (cash/debit-only policy) and alternative sources of income (ampm). ARCO is headquartered in La Palma, California.

AUTOZONE QUICK FACTS

TYPE Public

INDUSTRY Retail

FOUNDED 1979

HEADQUARTERS Memphis, TN

NUMBER OF LOCATIONS 5,006

NUMBER OF EMPLOYEES 70,000

WEBSITE www.autozone.com

ARCO QUICK FACTS

TYPE Private

INDUSTRY Oil & Gas Extraction

FOUNDED 1966

HEADQUARTERS La Palma, CA


WEBSITE www.arco.com

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Tenant Overview- Family Dollar

Family Dollar Family Dollar is an American variety store chain in the United States. With 8,100 locations, it is the second largest retailer of its type in the United States. Family Dollar is headquartered in Matthews, a suburb of Charlotte, North Carolina, where it employs 1,400 people.[3]

The 1970s were growing years for the store chain. In 1970, Family Dollar’s stock went public for the first time, at $14.50 per share. In 1971, the chain’s 100th store opened, followed by their 200th in 1974 and their 300th in 1978. Also in 1974, a distribution center was opened in Matthews, North Carolina. In 1979, Family Dollar stock began trading at the New York Stock Exchange.

In 1981, the chain’s 400th store was opened, followed by a 500th store in 1982 and a 700th in 1983. The 1980s saw expansion at a wider scale for the company, and, by 1989, 1,500 stores were operating.

The company opened distribution centers in West Memphis, Arkansas; Front Royal, Virginia and Duncan, Oklahoma. Since 2000, the pace of growth increased significantly, with the addition of about 3,500 new stores, and new distribution centers opening in Morehead, Kentucky; Maquoketa, Iowa; Odessa, Texas; Marianna, Florida; and Rome, New York.

In 2001, Family Dollar joined the S&P 500 stock market index. In 2002, the company joined the Fortune 500 list of largest publicly held companies.

As of August 2011, there were 7,000 stores in

44 states. According to their website, in 2005 Family Dollar opened 500 new stores, 350 more in 2006, and an additional 300 in 2007. According to the Company’s 2013 Corporate Profile, in 2010 Family Dollar opened 200 new stores, 300 more in 2011, 475 in 2012, and an additional 500 in 2013. On October 3, 2012, Family Dollar said they will open 500 stores in 2013

Tenant Overview

FAMILY DOLLAR QUICK FACTS

TYPE Public

INDUSTRY Retail

FOUNDED 1959

HEADQUARTERS Matthews, NC


NUMBER OF EMPLOYEES 50,000

WEBSITE www.familydollar.com

ALEX KOZAKOV First Vice President+1 213 613 3031Lic. [email protected]

MAXX COHENAssociate+1 213 613 3117Lic. [email protected]

EXCLUSIVELY LISTED BY: Affiliated Business DisclosureCBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”), engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management, and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammel Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

Confidentiality AgreementThis is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general econ-omy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain docu-ments, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc., nor any of their respective directors, officers, Affiliates, or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discus-sions with any entity at any time with or without notice which may arise as a result of review of this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered, and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence, and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If, after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMER©2013 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 responsibility 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. 2/13 PMC0004481

LAN MARK PLAZA


Documents

LAN MARK PLAZA - f.tlcollect.com · Lan Mark Plaza also offers strong intrinsic value, as it is priced significantly below replacement value at just $127/sf on improvements. Delivered