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SPARKLEAN 8936 State Street • South Gate, CA 90280
Offering Memorandum
1
*Actual Site Photo
Aria Pournazarian
National Retail Group
Los Angeles Office
Tel: (213) 943-1874
Fax: (213) 943-1800
License: CA 01918248
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and
should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified
information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due
diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the
future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or
asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any
tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be
reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these
matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to
verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights
reserved.
Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or
name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,
service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
SPARKLEAN
South Gate, CA
ACT ID Z0140115
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TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01 Offering Summary
Location Overview
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02 Tenant Summary
Lease Expiration Chart
Operating Statement
Notes
Pricing Detail
Acquisition Financing
MARKET OVERVIEW 03 Market Analysis
Demographic Analysis
SPARKLEAN
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SPARKLEAN
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INVESTMENT
OVERVIEW
SPARKLEAN
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EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Whole Foods Market Sopac 2,925
Commerce Casino 2,600
Parks & Recreation Dept 2,454
Charles Drew Univ Mdcine Scnce 2,377
US Post Office 2,152
Kaiser Permanente 1,807
Health Services Dept of 1,732
Los Angeles Cty Rnch Los Amgos 1,400
Bicycle Club Casino 1,300
County of Los Angeles 1,239
Animo Charter School Mid 1,184
UPS 1,165
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2017 Estimate Pop 67,978 466,834 1,060,830
2017 Census Pop 65,809 451,611 1,022,730
2017 Estimate HH 16,409 108,824 255,411
2017 Census HH 15,949 105,700 247,080
Median HH Income $40,742 $38,473 $39,393
Per Capita Income $12,757 $11,963 $12,820
Average HH Income $52,719 $50,495 $52,676
VITAL DATA
YEAR 1 June 1st, 2021
Price $1,995,000 CAP Rate 6.34% 6.82%
Down Payment 40% / $798,000 Net Operating Income
$126,240 $136,113
Loan Amount $1,197,000
Net Cash Flow After Debt Service
4.25% / $33,913 6.73% / $53,732
Loan Type Proposed New Total Return 7.37% / $58,773 10.01% / $79,851
Interest Rate / Amortization 4.95% / 25 Years
Gross Leasable Area (GLA) 5,600 SF
Price/SF $356.25
Year Built / Renovated 1946/2006
Lot Size 0.39 acre(s)
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MAJOR TENANTS
TENANT GLA LEASE EXPIRATION LEASE TYPE
Sparklean 5,000 12/31/2021 NN
Notes: Seller to credit Buyer the difference in base income over the period of the next increase in December 2018.
SPARKLEAN
OFFERING SUMMARY
Dual-Tenant Retail Offering in South Gate, California
Sparklean Laundromat-Corporate Backed Tenant
Established Location Since 2006-NN Lease with three and a half years
Remaining, two five year options
Original Build-To-Suit Location, Seasoned Tenant with Multiple Locations
Location Open 6 AM-10:30 PM, Modern, with Electronic Card Systems and
Home Delivery
Freestanding Building with Parking and Ingress/Egress Points and
Firestone Boulevard
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to present for sale 8936 State Street in South Gate, California. The offering is a dual-tenant retail opportunity anchored by a Sparklean Laundry in one of Los Angeles' denser sub-markets. The Sparklean has been located at the property since 2006 and was originally a build-to-suit site for the tenant. Sparklean initially invested over $1.5 Million into the location upgrading the building with HVAC, and utility upgrades. Sparklean currently has three and a half years remaining on a NN lease at this site with a 7.5 percent increase every 30 months, with the next increase taking place in December 2018. The tenant has already used one of its three five year options in 2016 with two remaining. The offering also includes an 800 square feet freestanding kiosk which is currently vacant allowing for additional income for a prospective investor. The property is a "Daily Needs" site serving the immediate demographics well. Sparklean is a preeminent player in the Southern California coin laundry business with five locations in Southern California all backed by a corporate entity, Tri Laundry Systems with over 40 years of experience. The opportunity presents itself as a sound, high-yield, low price point, NN retail investment suitable for either the 1031 Exchange Buyer or investor active in today’s market.
INVESTMENT OVERVIEW
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SPARKLEAN
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OFFERING SUMMARY
WELCOME TO SPARKLEAN LAUNDRY! Sparklean Laundry is a family-run business that has been perfecting laundry services for over 40 years, offering laundry drop-off service, commercial laundry, and self-service laundromats. We provide commercial laundry service for a range of businesses from party supply companies, fitness facilities and hotels to dog groomers and veterinarians throughout Los Angeles and Orange County. We handle extremely large orders and have expertise in laundry hoarding and clutter. At Sparklean, the choice is yours. Come on in and do your laundry in a clean and safe environment while taking advantage of our free Wi-Fi, televisions, movies, vending machines and video games. No quarters or coins are needed, our card system works throughout our facility and ATM machines are available. If you prefer instead to drop-off and pick-up your laundry, our friendly attendants will wash, dry, fold and package your order. We cater to our surrounding neighborhoods and the Sparklean team. is always ready and willing to help. We are family run business in a corporate world and love what we do!
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SPARKLEAN
PROPERTY SUMMARY
OFFERING SUMMARY
PROPOSED FINANCING
First Trust Deed
Loan Amount $1,197,000
Loan Type Proposed New
Interest Rate 4.95%
Amortization 25 Years
Loan Term 5 Years
Loan to Value 60%
Debt Coverage Ratio 1.41
THE OFFERING
Property Sparklean
Price $1,995,000
Property Address 8936 State St, South Gate, CA
Assessors Parcel Number 6210-026-027
Zoning SGCR
SITE DESCRIPTION
Year Built/Renovated 2006
Gross Leasable Area 5,600 SF
Ownership Fee Simple
Lot Size 0.39 acre(s)
Parking Included, On-Site
Parking Ratio 5/1,000
Topography Flat
Access Points Multiple
UTILITIES
Gas Tenant, Recently Upgraded
Electric Tenant, Recently Upgraded
Water Tenant, Recently Upgraded
Sewer Tenant
Trash Tenant
CONSTRUCTION
Exterior Landlord
Parking Surface Landlord
Roof Landlord, Recently Upgraded
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SPARKLEAN
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OFFERING SUMMARY
SOUTH GATE, CALIFORNIA
South Gate is the seventeenth largest city in Los Angeles County, California with 7.4 square miles.
South Gate is located seven miles southeast of Downtown Los Angeles. It is part of the Gateway
Cities Region of southeastern Los Angeles County.
Points of interest within close proximity of the site include South Gate City Hall, South Gate High
School, and Sanchez Medical Hospital all within walking distance. Prominent national retailers on
Firestone Boulevard include, Starbucks, Taco Bell, El Super, and Family Dollar.
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MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Whole Foods Market Sopac 2,925
Commerce Casino 2,600
Parks & Recreation Dept 2,454
Charles Drew Univ Mdcine Scnce 2,377
US Post Office 2,152
Kaiser Permanente 1,807
Health Services Dept of 1,732
Los Angeles Cty Rnch Los Amgos 1,400
Bicycle Club Casino 1,300
County of Los Angeles 1,239
Animo Charter School Mid 1,184
UPS 1,165
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2017 Estimate Pop 67,978 466,834 1,060,830
2017 Census Pop 65,809 451,611 1,022,730
2017 Estimate HH 16,409 108,824 255,411
2017 Census HH 15,949 105,700 247,080
Median HH Income $40,742 $38,473 $39,393
Per Capita Income $12,757 $11,963 $12,820
Average HH Income $52,719 $50,495 $52,676
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LOCATION OVERVIEW
CLOSE PROXIMITY TO:
8936 State Street, South Gate, CA 90280
LOCATION OVERVIEW TENANT SUMMARY PRICING AND VALUATION MATRIX
PROPERTY NAME SPARKLEAN
PRICING AND VALUATION MATRIX
PROPERTY NAME
SPARKLEAN
LOCATION OVERVIEW
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REGIONAL MAP
SPARKLEAN
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LOCAL MAP
SPARKLEAN
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AERIAL PHOTO
SPARKLEAN
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SPARKLEAN
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PROPERTY PHOTOS
SPARKLEAN
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FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
SPARKLEAN
OPERATING STATEMENT
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Notes: Seller to credit Buyer the difference in base income over the period of the next increase in December 2018.
FINANCIAL ANALYSIS
SPARKLEAN
PRICING DETAIL
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Notes: Seller to credit Buyer the difference in base income over the period of the next increase in December 2018.
SPARKLEAN
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MARKET
OVERVIEW
PROPERTY NAME
MARKETING TEAM
SPARKLEAN
DEMOGRAPHICS
Source: © 2017 Experian
POPULATION 1 Miles 3 Miles 5 Miles
2022 Projection
Total Population 65,599 458,379 1,046,581
2017 Estimate
Total Population 67,978 466,834 1,060,830
2010 Census
Total Population 65,809 451,611 1,022,730
2000 Census
Total Population 67,633 446,540 993,393
Current Daytime Population
2017 Estimate 44,447 315,496 777,638
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
2022 Projection
Total Households 16,441 110,157 259,353
2017 Estimate
Total Households 16,409 108,824 255,411
Average (Mean) Household Size 4.06 4.13 4.01
2010 Census
Total Households 15,949 105,700 247,080
2000 Census
Total Households 15,843 103,004 239,816
Occupied Units
2022 Projection 16,441 110,157 259,353
2017 Estimate 16,665 111,458 264,103
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
2017 Estimate
$150,000 or More 2.67% 2.53% 3.11%
$100,000 - $149,000 7.59% 7.42% 7.99%
$75,000 - $99,999 9.69% 9.53% 9.83%
$50,000 - $74,999 19.80% 17.70% 18.01%
$35,000 - $49,999 17.98% 17.47% 16.28%
Under $35,000 42.25% 45.34% 44.79%
Average Household Income $52,719 $50,495 $52,676
Median Household Income $40,742 $38,473 $39,393
Per Capita Income $12,757 $11,963 $12,820
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles
Total Average Household Retail Expenditure
$58,931 $56,791 $57,849
Consumer Expenditure Top 10 Categories
Housing $17,845 $17,282 $17,518
Shelter $11,962 $11,598 $11,724
Transportation $8,957 $8,629 $8,835
Food $6,262 $6,101 $6,197
Personal Insurance and Pensions $4,937 $4,666 $4,785
Utilities $2,933 $2,839 $2,874
Health Care $2,883 $2,750 $2,855
Entertainment $2,108 $2,025 $2,081
Apparel $2,050 $1,968 $1,971
Household Operations $1,244 $1,195 $1,232
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Population By Age
2017 Estimate Total Population 67,978 466,834 1,060,830
Under 20 32.51% 34.18% 34.00%
20 to 34 Years 25.14% 25.38% 25.15%
35 to 39 Years 7.42% 7.21% 7.14%
40 to 49 Years 12.79% 12.60% 12.67%
50 to 64 Years 14.47% 13.66% 13.80%
Age 65+ 7.68% 7.00% 7.24%
Median Age 30.05 28.95 29.14
Population 25+ by Education Level
2017 Estimate Population Age 25+ 40,073 266,789 608,612
Elementary (0-8) 30.05% 28.44% 25.43%
Some High School (9-11) 17.31% 19.64% 18.23%
High School Graduate (12) 25.09% 23.87% 24.59%
Some College (13-15) 12.18% 13.41% 15.12%
Associate Degree Only 4.09% 3.76% 4.34%
Bachelors Degree Only 4.29% 4.05% 5.11%
Graduate Degree 1.09% 1.26% 1.64%
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Income
In 2017, the median household income for your selected geography is
$40,742, compare this to the US average which is currently $56,286.
The median household income for your area has changed by 25.34%
since 2000. It is estimated that the median household income in your
area will be $44,861 five years from now, which represents a change
of 10.11% from the current year.
The current year per capita income in your area is $12,757, compare
this to the US average, which is $30,982. The current year average
household income in your area is $52,719, compare this to the US
average which is $81,217.
Population
In 2017, the population in your selected geography is 67,978. The
population has changed by 0.51% since 2000. It is estimated that the
population in your area will be 65,599.00 five years from now, which
represents a change of -3.50% from the current year. The current
population is 49.31% male and 50.69% female. The median age of
the population in your area is 30.05, compare this to the US average
which is 37.83. The population density in your area is 21,635.17
people per square mile.
Households
There are currently 16,409 households in your selected geography.
The number of households has changed by 3.57% since 2000. It is
estimated that the number of households in your area will be 16,441
five years from now, which represents a change of 0.20% from the
current year. The average household size in your area is 4.06 persons.
Employment
In 2017, there are 7,331 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
39.94% of employees are employed in white-collar occupations in
this geography, and 59.68% are employed in blue-collar occupations.
In 2017, unemployment in this area is 8.05%. In 2000, the average
time traveled to work was 33.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
49.36% White, 0.76% Black, 0.10% Native American and 0.42%
Asian/Pacific Islander. Compare these to US averages which are:
70.42% White, 12.85% Black, 0.19% Native American and 5.53%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 96.97% of the current year
population in your selected area. Compare this to the US average of
17.88%.
PROPERTY NAME
MARKETING TEAM
SPARKLEAN
Housing
The median housing value in your area was $401,034 in 2017,
compare this to the US average of $193,953. In 2000, there were
5,956 owner occupied housing units in your area and there were
9,886 renter occupied housing units in your area. The median rent at
the time was $568.
Source: © 2017 Experian
DEMOGRAPHICS
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SPARKLEAN
DEMOGRAPHICS
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