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Las Palmas Shopping Center2901-2931 East Florence Avenue | Huntington Park, CA 90255
2
Table of ContentsInvestment summary
tenant OvervIew
FInancIal OvervIewrent rOllprIcIng
DemOgraphIcslOcatIOn OvervIew
Disclaimerthis valuation analysis or broker opinion of value is not an appraisal and has not been performed in accordance with the uniform standards of professional appraisal practice. neither you, nor any third parties, may rely on this analysis for any tax purposes, estate work, litigation, lending or any other matter other than your direct use in connection with a contemplated transaction.
aleX KOZaKOV First vice president+1 213 613 3031lic. [email protected]
PaTricK WaDeFirst vice president+1 213 613 3071lic. [email protected]
HeaTHer GarreTT client services specialist+1 213 613 3367lic. [email protected]
maXX cOHeNassociate+1 213 613 3117lic. [email protected]
eric rOyassociate+1 213 613 3410lic. [email protected]
eXclusiVely lisTeD By:
3
N
DAYTIME EMPLOYMENT BASEWITHIN 3 MILES 109,973WITHIN 5 MILES 317,526
POPULATION (2014 EST.)WITHIN 3 MILES 415,024WITHIN 5 MILES Source: Nielsen
1,075,544
4
iNVesTmeNT summary las Palmas shopping center2901-2931 e Florence avenue Huntington Park, ca 90255
Price: $11,295,000
year 1 caP raTe: 5.70%
year 1 NOi: $643,480
BuilDiNG siZe: 27,876 SF
Price/sF: $405.19
laND area: 99,100 SF
PerceNT leaseD: 100%
ZONiNG: HPCG
year BuilT: 2000
ParKiNG: 112 Spaces
ParKiNG raTiO 4.02/1,000 RSF
maJOr TeNaNTs: McDonald’s, Papa John’s Pizza, Sprint,
AutoZone, Wells Fargo and Mother’s
Nutritional Center
TaX maP
5
Investment Summary
• 100% Leased with Almost 83% of GLA Occupied by National and Regional Tenants
• Newer Construction and Professionally Managed: Low Deferred Maintenance
• Best-In-Class Tenants Including: McDonald’s, AutoZone, Sprint, Wells Fargo and Papa John’s Pizza
• Year One Cap Rate of 5.7% with Scheduled Rent Increases• Delivered Free & Clear of Debt with the Ability to Source New Financing
at Today’s Historically Low Interest Rates• McDonald’s is a Free-Standing Drive-Thru with Almost Twelve Years
Remaining on the Lease; Potential to Parcelize and Spin Off to Lower Basis
• All Tenants on Triple-Net Leases with Rental Increases and Staggered Lease Expirations
• One of the Densest Populations in All of Southern California: Over 1 Million People in a 5-Mile Radius
• Over 84% of all Households in Huntington Park are Occupied by Families with an Average Household Size of 4.2 People
• High Traffic Location at a Signalized Intersection with More than 48,180 Cars per Day
• Desirable Huntington Park Retail Center with Good Access and Parking• Over 225 Feet of Frontage Along Florence Avenue (More than 32,000
Cars/Day)• Close Proximity to Numerous Retailers, Schools and Places of
Employment
Stabilized Los Angeles Shopping Center With Credit Tenants
Strategic In-Fill Retail Location With High Traffic
HiGHliGHTs
aVG HH iNcOme: $44,871 (1-mile)
2014 POPulaTiON: 1,075,544 (5-mile)
TraFFic cOuNTs: 48,180 FlOreNce aVe. & mOuNTaiN VieW aVe.
6
Executive SummaryLas Palmas offers investors a 100%-leased shopping center consisting of 27,876 sq. ft. of GLA on nearly one acre of land. Located in one of the densest locations
in all of Southern California, with over one million people in a five mile radius. Las Palmas offers strong in-place returns plus upside. Delivered free and clear of
debt, investors have the opportunity to obtain new debt at today’s historically low rates. In addition, the property is over 83% occupied by national and regional
tenants, including McDonald’s, Sprint, Wells Fargo, Papa John’s Pizza and Autozone. The investment offers ease of management, with all tenants on triple-net
leases with an average remaining lease term of over six years. There is also potential upside through dividing the freestanding McDonald’s into a separate parcel
in order to lower an investor’s basis.
The Las Palmas property is located at the signalized intersection of Florence Avenue and Mountain View Avenue (more than 48,000 cars per day). The center
has great ingress and egress from three streets and benefits from the high foot traffic and bus-stop fronting the property along Florence Avenue. Huntington
Park is a growing community that benefits from excellent demographics due to its proximity to major job centers including Downtown Los Angeles, Vernon and
Commerce. It serves as a major retail area for residents of southeastern Los Angeles County, including the neighboring communities of Bell, South Gate and
Downey.
CBRE is pleased to offer for sale the Las Palmas Shopping Center- an established McDonald’s-anchored retail center in Huntington Park, CA.
7
6,350sf2903-A
AUTOZONE
4,087sf2905
SPRINT1,469sf2915
KALAI & SADIGHIMDENTAL CORP.
1,470sf2917
KA SUP KIM DBAWATERIA
2,556sf2919
MOTHER'SNUTRIONAL CENTER
1,135sf2925
DJ'S YOGURT
1,468sf2927
PJ'S PIZZA, INC.
2929AVAILABLE
2,472 sf
3,928sf2931
MCDONALD'SUSA, INC.
PYLON
MONUMENT
WELLS FARGO BANKATM
2,909sf2911
DOLLAR BARGAIN
SITE PLAN
LAS PALMASPRIME/CRDF LAS PALMAS, LLC
2911 FLORENCE BLVD.HUNTINGTON PARK, CA
Primestor Development, Inc.201 S. Figueroa Street, suite 300Los Angeles, CA 90012Tel: 310.652.1177 Fax: 213.223.5598
DATE: 06.12.2014DISCLAIMER:THIS PLAN IS PROVIDED SUBJECT TO ERRORS, OMISSIONS, AND MODIFICATIONSWITHOUT NOTICE. THE INFORMATION, SPECIFICATIONS, DIMENSIONS AND/ORTABULATIONS SET FORTH IN THIS PLAN HAVE BEEN DERIVED FROM DOCUMENTSBELEIVED TO BE RELIABLE. HOWEVER, THIS PLAN MAY BE INCOMPLETE AND/ORINACCURATE. NO REPRESENTATION OR WARRANTY, EXPRESSED OR IMPLIED AS TO THEACCURACY OR ADEQUACY REGARDING SUCH INFORMATION IS MADE BY THE OWNER OFTHE PROJECT, PROPERTY MANAGER, OR ANY OTHER RESPECTIVE PARTNERS,DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS. NONE OF THE FOREGOING PARTIESSHALL HAVE ANY LIABILITY FOR SUCH ERRORS, OMISSIONS, INCOMPLETENESS ORINACCURACIES. ANY PERSON OR ENTITY REVIEWING THIS PLAN SHOULD MAKE THEIROWN INDEPENDENT INVESTIGATION OF THE INFORMATION CONTAINED HEREIN.
AVAILABLE
TOTAL PARKING PROVIDED: 112 SPACESPARKING RATIO: 4/1,000
M:\2911 Florence (Las Palmas)\_Primestor\2014\_base files\2911 SITE\07-Las PalmasHuntington Park, Ca.dwg, 6/12/2014 2:31:28 PM,DWG To PDF.pc3, PRIMESTOR DEVELOPMENT, INC. YA
siTe PlaN
Prospera Group2929
2,404sf
8
N
DAYTIME EMPLOYMENT BASEWITHIN 3 MILES 109,973WITHIN 5 MILES 317,526
POPULATION (2014 EST.)WITHIN 3 MILES 415,024WITHIN 5 MILES Source: Nielsen
1,075,544
DowntownLos Angeles
University ofSouthern California
Beverly Hills
9
Financial Overviewexecutive summary
Property Type Retail Size of Improvements 27,876 SF
Property Name Las Palmas Shopping Center Current Leased as of 3/1/15 100%
Property Address 2911-2931 Florence Blvd., Huntington Park Projected Leased as of 5/1/15 100%
PROPERTY DESCRIPTION
[1] Leveraged Analysis is based on financing that a particular investor may or may not be able to obtain and is subject to change. Please contact Shaun Moothart at 949-509-2111 or [email protected] for details.
Purchase Price as of May 1, 2015 $405 PSF $11,295,000
Year 1 Year 2 Year 3
Capitalization Rate 5.70% 5.94% 6.07%
Cash Return 5.66% 5.77% 6.03%
Leveraged Cash Return 8.12% 8.42% 6.14%
3-Year 5-Year 7-Year
Average Capitalization Rate 5.90% 6.18% 6.55%
Average Cash Return 5.82% 5.88% 6.13%
Average Leveraged Cash Return 7.56% 6.92% 7.29%
Net Residual Value as of April 30, 2025 $14,436,000
Net Residual Per Square Foot $518
Residual Capitalization Rate 6.50%
Residual Cost of Sale 3.00%
ALL CASH IRR 8.32%
ACQUISITION AND RESIDUAL SUMMARY
Market Loan
Initial Loan Funding (as of May-15) $7,341,750
Loan-To-Value Ratio (Initial Funding) 65.00%
Funding Date May-15
Maturity Date Apr-25
Remaining Loan Term Analysis 10.0 Years
Amortization Period 30 Years
Initial Interest Only Period (If Any) 24 Months
Interest Rate 4.25%
Loan Constant 5.90%
Origination Fee on Initial Loan Funding 1.00%
Initial Debt Yield 8.76%
Debt Service Coverage Ratio (NOI) 1.48x
Debt Service Coverage Ratio (CF) 1.47x
Purchase Price as of May 1, 2015 $11,295,000
Total Initial Loan Principal ($7,341,750)
Total Initial Loan Fees $73,418
Holdbacks and Escrows 0
Initial Equity $4,026,668
LEVERAGED IRR 13.49%
LEVERAGE SUMMARY [1]
10
Financial Overviewsummary OF FiNaNcial assumPTiONs
ANALYSIS PERIOD
Commencement Date May 1, 2015
End Date April 30, 2025
Term 10 Years
AREA MEASURES
Building Square Feet (NRSF) 27,876 SF
GROWTH RATES
Consumer Price Index (CPI) 3.00%
Other Income Growth Rate 3.00%
Operating Expenses 3.00%
Real Estate Taxes 2.00%
Market Rent Growth [1]
CY 2016 - 5.50%
CY 2017 - 6.60%
CY 2018 - 5.90%
CY 2019 - 4.40%
CY 2020 - 3.00%
CY 2021 - 3.00%
CY 2022 - 3.00%
CY 2023 - 3.00%
CY 2024 - 3.00%
CY 2025+ - 3.00%
General Vacancy Loss 5.00% [2]
Capital Reserves (CY 2015 Value) $0.15 PSF
GLOBAL
OCCUPANCY AND ABSORPTION
Projected Vacant at 5/1/15 0 SF
Currently Vacant as of 3/1/15 0 SF
Percentage Vacant as of 3/1/15 0.00%
VACANT SPACE LEASING
ATM RETAIL
RETENTION RATIO 75% 70%
FINANCIAL TERMS
2015 Monthly Market Rent $3.88 PSF See Rent Roll
Rent Adjustment 3.00% Annually 3.00% Annually
Lease Term 5 Years 5 Years
Expense Reimb. Type None NNN + 10% AF
TENANTING COSTS
Rent Abatements
New 0 Month(s) 3 Month(s)
Renewal 0 Month(s) 0 Month(s)
Weighted Average 0 Month(s) 0.90 Month(s)
Tenant Improvements ($/NRSF)
New $0.00 PSF $15.00 PSF
Renewal $0.00 PSF $0.00 PSF
Weighted Average $0.00 PSF 4.50 PSF
Commissions
New 6.00% 6.00%
Renewal 3.00% 3.00%
Weighted Average 3.75% 3.90%
Downtime
New 6 Month(s) 6 Month(s)
Weighted Average 2 Month(s) 2 Month(s)
SECOND GENERATION LEASING
OPERATING EXPENSE SOURCE 2015 Forecast
MANAGEMENT FEE (% of EGR) 4.00%
REAL ESTATE TAXES REASSESSED Yes [3]
Millage Rate 1.404000%
Special Assessments $9,468
EXPENSES
All market rates are started on calendar-year basis.[1] Market Rent Growth projections are based upon CBRE Econometric Advisors’ 2014 Q3 Retail forecast for East Los Angeles through CY 2019, with 3% annual increases modeled thereafter.[2] General Vacancy Loss factor includes losses attributable to projected lease-up, rollover downtime and fixturing downtime. The following tenants are excluded from this loss factor for current lease terms only: Autozone and McDonald’s.[3] Real Estate Taxes have been reassessed at the estimated purchase price based on a millage rate of 1.404000% plus special assessments of $9,468.
11
Financial Overview
In-Place NOI May-15 to Apr-16 $ PSF
Size Of Improvements 27,879 SF
REVENUES
Scheduled Base Rent
Gross Potential Rent $693,935 $24.89
Absorption & Turnover Vacancy 0 0.00
Base Rent Abatements 0 0.00
Total Scheduled Base Rent $693,935 $24.89
Expense Reimbursements $268,201 $9.62
TOTAL GROSS REVENUE $962,136 [1] $34.51
Gross Vacancy Loss ($28,010) ($1.00)
EFFECTIVE GROSS REVENUE $934,126 $33.51
OPERATING EXPENSES
Cleaning ($10,936) ($0.39)
Repairs & Maintenance ($33,671) ($1.21)
Utilities ($20,136) ($0.72)
Roads & Grounds ($9,883) ($0.35)
Security ($2,326) ($0.08)
Management Fee ($28,024) ($1.01)
Insurance ($16,563) ($0.59)
Real Estate Taxes ($169,107) ($6.07)
TOTAL OPERATING EXPENSES ($290,646) [2] ($10.43)
NET OPERATING INCOME $643,480 $23.08
Capitalization Rate 5.70%
PURCHASE PRICE AS OF MAY 1, 2015 $11,295,000 $405.19
In-Place Occupancy (At Start of Analysis With No Vacant Lease-Up) 100.00%
Average Occupancy (Includes Vacant Lease-Up and Rollover) -
YEAR 1 ANALYSIS
[1] In-Place Net Operating Income is calculated using contractual rents and expense reimbursements from May-15 to Apr-16 (less a 5.00% General Vacancy Loss). In-Place NOI does not include vacant lease-up revenue or downtime due to near-term expectations, but does include future rent increases for existing tenants.[2] Real Estate Taxes are reassessed based on the sales price.
12
Financial OverviewCASH FLOW PROJECTIONS
Fiscal Year Ending - April 30 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Physical Occupancy 99.12% 100% 100% 95.59% 96.68% 94.29% 99.12% 100% 97.25% 95.46% 95.75%
Overall Economic Occupancy [1] 97.09% 96.82% 97.11% 94.92% 96.02% 93.27% 95.54% 95.83% 95.36% 94.06% 95.05%
Weighted Average Market Rent $2.33 $2.47 $2.62 $2.76 $2.87 $2.96 $3.05 $3.04 $3.10 $3.13 $3.24
Weighted Average In-Place Rent [2] $2.08 $2.17 $2.22 $2.36 $2.55 $2.68 $2.95 $3.04 $3.10 $3.13 $3.24
Total Operating Expenses PSF Per YR $10.43 $10.68 $10.92 $11.19 $11.50 $11.76 $12.12 $12.41 $12.68 $12.95 $13.27
REVENUES FY 2016-$/SF/MO [3]
Scheduled Base Rent
Gross Potential Rent $2.08 $695,973 $729,027 $741,645 $809,715 $863,435 $925,748 $989,211 $1,016,941 $1,042,477 $1,068,997 $1,094,157
Absorption & Turnover Vacancy ($0.02) ($6,974) 0 0 ($39,158) ($25,664) ($54,587) ($8,720) 0 ($27,563) ($42,870) ($46,337)
Base Rent Abatements 0 0 ($3,138) 0 ($15,769) ($11,496) ($26,468) ($3,924) 0 ($6,439) ($25,256) ($11,019)
Total Scheduled Base Rent $2.06 $688,999 $725,889 $741,645 $754,788 $826,275 $844,693 $976,567 $1,016,941 $1,008,475 $1,000,871 $1,036,801
Expense Reimbursements $0.79 $265,722 $271,403 $277,597 $270,687 $280,976 $277,946 $295,015 $304,567 $302,504 $303,783 $312,751
TOTAL GROSS REVENUE $2.85 $954,721 $997,292 $1,019,242 $1,025,475 $1,107,251 41,122,639 $1,271,581 $1,321,508 $1,310,979 $1,304,654 $1,349,552
General Vacancy Loss ($0.06) ($21,014) ($28,695) ($29,501) 0 ($8,418) 0 ($44,577) ($55,107) ($28,351) ($13,447) ($12,351)
EFFECTIVE GROSS REVENUE $2.79 $933,707 $968,597 $989,741 $1,025,475 $1,098,833 $1,122,639 $1,227,005 $1,266,401 $1,282,628 $1,291,207 $1,337,201
OPERATING EXPENSES
Cleaning ($0.03) ($10,936) ($11,263) ($11,601) ($11,949) ($12,308) ($12,678) ($13,058) ($13,449) ($13,853) ($14,268) ($14,697)
Repairs & Maintenance ($0.10) ($33,671) ($34,682) ($35,723) ($36,796) ($37,899) ($39,036) ($40,207) ($41,413) ($42,655) ($43,935) ($45,254)
Utilities ($0.06) ($20,136) ($20,741) ($21,363) ($22,003) ($22,664) ($23,343) ($24,044) ($24,765) ($25,507) ($26,273) ($27,061)
Roads & Grounds ($0.03) ($9,883) ($10,179) ($10,485) ($10,800) ($11,124) ($11,457) ($11,800) ($12,154) ($12,520) ($12,895) ($13,281)
Security ($0.01) ($2,326) ($2,396) ($2,468) ($2,542) ($2,618) ($2,697) ($2,777) ($2,861) ($2,947) ($3,035) ($3,126)
Management Fee ($0.08) ($28,011) ($29,058) ($29,692) ($30,764) ($32,965) ($33,679) ($36,810) ($37,992) ($38,479) ($38,736) ($40,116)
Insurance ($0.05) ($16,563) ($17,060) ($17,572) ($18,099) ($18,642) ($19,201) ($19,778) ($20,370) ($20,982) ($21,611) ($22,260)
Real Estate Taxes ($0.51) ($169,107) ($172,300) ($175,557) ($178,878) ($182,267) ($185,723) ($189,248) ($192,843) ($196,511) ($200,252) ($204,067)
TOTAL OPERATING EXPENSES ($0.87) ($290,633) ($297,679) ($304,461) ($311,831) ($320,487) ($327,814) ($337,722) ($345,847) ($353,454) ($361,005) ($369,862)
NET OPERATING INCOME $1.92 $643,074 $670,918 $685,280 $713,644 $778,346 $794,825 $889,283 $920,554 $929,174 $930,202 $967,339
CAPITAL COSTS
Tenant Improvements 0 0 ($6,809) 0 ($33,269) ($28,090) ($54,674) ($7,893) 0 ($14,570) ($56,560) ($23,828)
Leasing Commissions 0 0 ($8,542) 0 ($42,922) ($31,288) ($72,039) ($10,680) 0 ($17,524) ($68,740) ($29,992)
Capital Reserves (0.01) ($4,223) ($4,350) ($4,480) ($4,615) ($4,753) ($4,896) ($5,043) ($5,194) ($5,350) ($5,510) ($5,676)
TOTAL CAPITAL COSTS (0.01) ($4,223) ($19,701) ($4,480) ($80,806) ($64,131) ($131,609) ($23,616) ($5,194) ($37,444) ($130,810) ($59,496)
OPERATING CASH FLOW $1.91 $638,851 $651,217 $680,800 $632,838 $714,215 $663,216 $865,667 $915,360 $891,730 $799,392 $907,843
ACQUISITION & RESIDUAL SALE
Acquisition Cost ($11,295,000) 0 0 0 0 0 0 0 0 0 0 ALL CASH
Net Residual Value [4] 0 0 0 0 0 0 0 0 0 0 $14,435,674 IRR
CASH FLOW BEFORE DEBT ($11,295,000) $638,851 $651,217 $680,800 $632,838 $714,215 $663,216 $865,667 $915,360 $891,730 $15,235,066 8.32%
MARKET LOAN [5]
Loan Funding/Payoff ($7,341,750) 0 0 0 0 0 0 0 0 0 ($6,187,633)
Loan Fees ($73,418) 0 0 0 0 0 0 0 0 0 0 Leveraged
Annual Debt Service 0 ($312,024) ($312,024) ($433,404) ($433,404) ($433,404) ($433,404) ($433,404) ($433,404) ($433,404) ($433,404) IRR
CASH FLOW AFTER DEBT ($4,026,668) $326,827 $339,193 $247,396 $199,434 $280,811 $299,812 $432,263 $481,956 $458,326 $8,614,029 13.49%
NOI Return 5.69% 5.94% 6.07% 6.32% 6.89% 7.04% 7.87% 8.15% 8.23% 8.24%
UNLEVERAGED Cash Return 5.66% 5.77% 6.03% 5.60% 6.32% 5.87% 7.66% 8.10% 7.89% 7.08%
LEVERAGED Cash Return 8.12% 8.42% 6.14% 4.95% 6.97% 5.71% 10.74% 11.97% 11.38% 9.09%
Debt Service Coverage Ratio (NOI) 2.06x 2.15x 1.58x 1.65x 1.80x 1.83x 2.05x 2.12x 2.14x 2.15x
Debt Service Coverage Ratio (CF) 2.05x 2.09x 1.57x 1.46x 1.65x 1.53x 2.00x 2.11x 2.06x 1.84x
Rolling - All Cash IRR N/M 1.00% 3.98% 6.41% 6.74% 8.23% 8.45% 8.36% 8.20% 8.32%
Rolling-Leveraged IRR N/M N/M 2.79% 9.73% 10.58% 13.99% 14.26% 13.90% 13.42% 13.49%
[1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy and base rent abatements.
[2] This figure does not include any amount related to expense reimbursement. Only Scheduled Base Rent and Fixed/CPI Increases are included in this calculation, which is based on the weighted-average physical occupancy during each fiscal year.
[3] Based on 27,876 square feet.
[4] Net Residual Value is calculated by dividing Year 11 NOI by the Residual Cap Rate of 6.50% and applying a 3.00% Cost of Sale.
[5] Market Debt based on 65% Loan-to-Value, 4.25% Interest Rate, with 24 Months of Interest Only then 30-Year Amortization, and 1.00% Loan Fee.
13
Suite Tenant Name
Square Feet
% ofProperty
Lease Term Rental Rates RecoveryType
Market Assumption /Market Rent
Comments/OptionsBegin End Begin Monthly PSF Annually PSF
2903 A Autozone 6,350 22.78% Jan-2011 Jan-2021 CurrentFeb. 2016Aug. 2018
$13,335$13,970$15,431
$2.10$2.20$2.43
$160,020$167,640$185,166
$25.20$26.40$29.16
NNN +5% AF CAM Autozone
Market$2.25 NNN + 10% AF CAM
Tenant has 3, 5-year options to renew (terms unknown). Autozone doesn’t reimburse Roofing Expense until 1/16.
2905 Sprint 4,087 14.66% Jan-2014 Jan-2019 Current $8,787 $2.15 $105,445 $25.80 NNN +10% AF CAM Sprint
Market $2.25 NNN + 10% AF
Tenant has 1, 5-year option to renew at $9,890.54/mo.
2911 Mariposa USA, Inc.
dba Dollar Bargain
2,941 10.55% Aug-2014 Jul-2019 CurrentAug-2015Aug-2016Aug-2017Aug-2018
$3,927$4,044$4,159$4,306$4,421
$1.34$1.38$1.41$1.46$1.50
$47,126$48,527$49,909$51,673$53,056
$16.02$16.50$16.97$17.57$18.04
NNN +10% AF CAM (1,2,4)
Market $1.50 NNN + 10% AF CAM (4)
Tenant has 1, 5-year option to renew at $4,554.33/mo.
2915 Kalai & Sadighim
Dental Corp.
1,469 5.27% Feb-2011 Feb-2016 Current $2,468 $1.68 $29,615 $20.16 NNN +12% AF CAM (1,2,4)
Market $2.25 NNN + 10% AF CAM (4)
Tenant has 2, 5-year options to renew (terms unknown).
2917 KA Sup Kim dba Wateria
1,470 5.27% Jul-2000 Mar-2019 CurrentApr-2016Apr-2017Apr-2018
$3,572$3,646$3,719$3,793
$2.43$2.48$2.53$2.58
$42,865$43,747$44,629$45,511
$29.16$29.76$30.36$30.96
NNN + 15% AF CAM (1,2,4)
Market$2.25 NNN + 10% AF CAM (4)
2919 Mother’s Nutritional
Center
2,556 9.17% May-2000 Apr-2018 CurrentMay-2016May-2017
$2,556$2,633$2,711
$1.00$1.03$1.06
$30,672$31,592$32,538
$12.00$12.36$12.73
NNN + 15% AF CAM (1,2,4)
Market$2.00 NNN + 10% AF CAM (4)
Tenant has renewed for 3 years at $12/sf/yr NNN with 3% annual rent bumps. Tenant has an additional 2, 3-year options to renew. It is assumed tenant rolls to weighted-average market leasing assumptions upon 4/18 expiration.
2925 DJ Yogurt Shop
1,135 4.07% Aug-2009 Jul-2019 CurrentFeb-2017
$2,508$2,701
$2.21$2.38
$30,100$32,416
$26.52$28.56
NNN + 15% AF CAM (1,2)
Market$2.25 NNN + 10% AF CAM
Tenant has 1, 5-year option to renew (terms unknown).
2927 Papa John’s Pizza
1,468 5.27% Apr-2000 Mar-2020 CurrentApr-2016Apr-2017Apr-2018Apr-2019
$3,600$3,708$3,819$3,934$4,052
$2.45$2.53$2.60$2.68$2.76
$43,200$44.495$45,831$47,211$48,620
$29.43$30.31$31.22$32.16$33.12
NNN + 15% AF CAM (1,2)
Market$2.25 NNN + 10% AF CAM
Tenant has renewed for 5 years at $3,600/mo NNN with 3% annual bumps, expiring 3/20. Tenant has 1, 5-year option to renew.
2929 Prospera Group
2,472 8.87% May-2015SIGNED LOI
Apr-2020 CurrentMay-2016May-2017May-2018May-2019
$3,090$3,183$3,277$3,376$3,477
$1.25$1.29$1.33$1.37$1.41
$37,080$38,192$39,330$40,516$41,727
$15.00$15.45$15.91$16.39$16.88
NNN + 15% AF CAM Market$2.00 NNN +10% AF CAM
Signed LOI. Tenant as 1, 5-year option to renew at the greater of $1.45/sf/mo or FMR.
2031 McDonald’s USA, Inc.
3,928 14.09% Aug-2006 Nov-2026 CurrentAug-2016Aug-2021
$12,373$13,591$14,966
$3.15$3.46$3.81
$148,478$163,091$179,588
$37.80$41.52$45.72
NNN +10% AF CAM1 McD
Market$3.25 NNN + 10% AF CAM 1
McD
Tenant pays pro rata share at 14%. Tenant has 8, 5-year options to renew.
ATM Wells Fargo* 348 (N.I) 1.25% Jul-2014 Jun-2019 Pad SiteJul-2019Jul-2024Jul-2029
$1,350$1,512$1,693$1,897
$3.88$4.35$4.87$5.45
$16,200$18,145$20,320$22,759
$46.55$52.14$58.39$65.40
Fixed $1,200/yr Market $3.88 AMT Tenant has 3, 5-year options to renew. Rents: 1st (5 yr) option: $1,512. 2nd (5 yr) option: $1,693 3rd (5 yr) option: $1,897. Tenant is assumed to exercise all options
VACANT 0 0%
OCCUPIED 27,876 100%
TOTAL 27,876 100% $57,567 $2.07 $690,801 $24.78
Financial OverviewRENT ROLL AS OF 5/1/2015
*Wells Fargo SF not included in GLA.Weighted-Average Lease Term Remaining: 5.34 Years
14
Tenant Overview
sprintSprint Corporation, commonly referred to as Sprint, is a United States telecommunications holding company that provides wireless services and is also a major global internet carrier. It is the third larget US wireless network operator as of 2013, and it
served 54.6 million customers by the end of the first quarter of 2014. In addition to the Sprint brand, the company also offers wireless voice, messaging, and broadband services through its various subsidiaries under the Boost Mobile, Virgin Mobile, and Assurance Wireless brands, as well as wholesale access to its wireless networks to mobile virtual network operators. The company is headquartered in Overland Park, Kansas, and in July 2013, a majority of the company was purchased by the Japanese telecommunications company SoftBank Corporation, although the remaining shares of the company continue to trade on the New York Stock Exchange (NYSE: S). As of 2013, Sprint had a revenue over $35.49 billion with 38,000 employees.
Website: sprint.com
Nyse: s
# of employees: 38,000
autozoneAutozone is the second largest retailer of aftermarket automotive parts and accessories in the United States. Founded in 1979, the company was initially known as Auto Shack. Currently headquarterd in Memphis, Tennessee, Autozone is a publicly traded company
(NYSE: AZO) with over 5,200 stores located throughout the United States, Brazil, and Mexico. In 2013, they had a revenue over $9 million and currently have over 70,000 employees.
Website: autozone.com
# of locations: Over 5,200
Nyse: aZO
# of employees: 70,000
Papa John’s PizzaPapa John’s Pizza is the third largest take-out and delivery pizza restaurant chain in the United States. Headquartered in Jeffersontown, Kentucky, there are over 4,000 restaurants, throughout the United States and in 33 countries. In September 2012, Papa John’s Pizza opened it’s 4,000th
restaurant in New York City, celebrating the event by giving away 4,000 free pizzas to customers throughout the city. John Schnatter created the company in 1983, and the company reported an operating income over $106.5 billion in 2013 with 20,700 employees (NASDAQ: PZZA).
Website: papajohns.com
# of locations: 4,000
NasDaQ: PZZa
# of employees: 20,700
mcDonald’sThe McDonald’s corporation is the world’s largest chain of hamburger fast food restaurants, serviing around 68 million customers daily in 119 countries across 35,000 outlets. Headquartered in Oak Brook, Illinois, the company started in 1940 as a barbeque restaurant operated by Richard and Maurice McDonald. In 1948, they turned the business into a hamburger
stand using production line principles, and businessman Ray Kroc joined the company as a franchise agent in 1955, subsequently purchasing the chain from the McDonald brothers and turning it into a worldwide company (NYSE: MCD). In 2012, McDonald’s Corporation had annual revenue of $27.5 billion and profits of $5.5 billion and has over 1,800,000 employees.
Website: mcdonalds.com
# of locations: 35,000
Nyse: mcD
# of employees: 1,800,000
15
Tenant Overview (cont.)
mother’s Nutritional centerMother’s Nutritional Center has 86 locations throughout the United States and provides an stress-free way for customers to locate the products they need. They have a friendly, helpful staff and provide an easy voucher shopping experience. In addition,
their locations have play areas for children while parents are shopping.
Website: www.mncinc.com
# of locations: 86
Wells FargoWells Fargo is an American multinational banking and financial services holding company. It is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home mortgage servicing and debit cards. In 2011, Wells Fargo was the 23rd largest company in the United States. Headquartered in San Francisco, Wells Fargo has over 9,000 retail branches and over 12,000 ATMs in 39 states as well as the District of Columbia. A “Big-Four Bank,” Wells Fargo has over 270,000 employees and over 70 million customers. As of July 2013, it became the world’s biggest bank by market capitalization, worth $236 billion.
Website: www.wellsfargo.com
Nyse: WFc
Headquarters: san Francisco, ca
established: 1852
WateriaWateria is a full-service retail outlet that sells purified water by the gallon, purified ice and other water-related products including crocks, coolers and bottles. The company was established in September 1994 and provides quality water to all of their
customers. Wateria is equipped with a unique 13-step water purification system, which dispenses the cleanest and purest quality drinking water for the public. Over the past few years, they have grown tremendously and currently operate 21 stores with more in development. On average, they add five to ten store locations each year, and among the hundreds of water stores, Wateria was the first to receive a franchise license from the state government
Website: www.wateriausa.com
# of locations: 21
established: 1994
Headquarters: Whittier, ca
16N
DAYTIME EMPLOYMENT BASEWITHIN 3 MILES 109,973WITHIN 5 MILES 317,526
POPULATION (2014 EST.)WITHIN 3 MILES 415,024WITHIN 5 MILES Source: Nielsen
1,075,544
Salt LakePark
Salt LakePark
Mou
nta
in V
iew
Ave
Passa
ic St
17
Demographic AnalysisDEMOGRAPHICS 1 MILE 3 MILE 5 MILE
2014 Estimated Population 69,026 415,024 1,075,544
2019 Projected Population 70,559 428,451 1,114,226
2010 Census Population 68,221 406,431 1,049,704
2000 Census Population 70,895 402,568 1,020,049
Growth 2010-2014 1.18% 2.11% 2.46%
Growth 2014-2019 2.22% 3.24% 3.60%
2014 Estimated Median Age 30.30 28.83 29.14
2014 Estimated Average Age 32.54 31.39 31.74
2014 Estimated Households 17,266 97,855 259,229
2019 Projected Households 17,761 101,272 269,151
2010 Census Households 16,933 95,533 252,359
2000 Census Households 17,128 93,382 252,359
Growth 2010-2014 1.97% 2.43% 2.72%
Growth 2013-2019 2.86% 3.49% 3.83%
2014 Est. Average Household Size 3.98 4.22 4.10
2014 Est. Median Household Income $34,757 $34,742 $33,800
2019 Prj. Median Household Income $35,826 $36,059 $35,246
2000 Cen. Median Household Income $30,065 $28,618 $27,442
2014 Est. Average Household Income $44,871 $44,685 $44,224
2014 Estimated Per Capita Income $11,224 $10,536 $10,659
2014 Estimated Housing Units 17,930 102,525 274,732
2014 Estimated Occupied Units 17,266 97,855 259,229
2014 Estimated Vacant Units 663 4,670 15,504
2014 Est. Owner Occupied Units 5,460 32,917 89,968
2014 Est. Renter Occupied Units 11,807 64,938 169,261
2014 Est. Median Housing Value $298,282 $284,956 $287,872
2014 Est. Average Housing Value $323,701 $307,409 $312,298
2014 Est. Population by Race 69,026 415,024 1,075,544
- White Population 37,139 (53.8%) 187,584 (45.2%) 432,669 (40.2%)
- Black Population 502 (0.7%) 23,030 (5.5%) 119,684 (11.1%)
- Asian Population 401 (0.6%) 2,052 (0.5%) 9,229 (0.9%)
- Pacific Islander Population 35 (0.1%) 297 (0.1%) 1,215 (0.1%)
- American Indian and Alaska Native 1,050 (1.5%) 4,224 (1.0%) 10,363 (1.0%)
- Other Race Population 27,469 (39.8%) 181,939 (43.8%) 461,813 (42.9%)
- Two or More Races Population 2,430 (2.5%) 15,989 (3.8%) 40,569 (3.8%)
- Hispanic Population 67,249 (97.4%) 383,529 (92.4%) 921,715 (85.7%)
- White Non-Hispanic Population 973 (1.4%) 6,307 (1.5%) 22,513 (2.1%)
18
Location OverviewHuNTiNGTON ParKLocated in Los Angeles County, the city of Huntington Park had a total of 61,348 people (according to the 2010 census). Named for prominent industrialist Henry Huntington, Huntington Park was incorporated as a streetcar suburb for workers in the rapidly expanding industries southeast of downtown Los Angeles. Today, the city benefits from excellent demographics, with the average household income over $45,000 and serves as a major retail area for working-class residents of southeastern Los Angeles County.
aleX KOZaKOV First vice president+1 213 613 3031lic. [email protected]
PaTricK WaDeFirst vice president+1 213 613 3071lic. [email protected]
HeaTHer GarreTT client services specialist+1 213 613 3367lic. [email protected]
maXX cOHeNassociate+1 213 613 3117lic. [email protected]
eric rOyassociate+1 213 613 3410lic. [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 economy, 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 referenc-es 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 documents, 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 agree-ments 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 discussions 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 authori-zation 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