1870 E PALMDALE BOULEVARD

Transcription

1 1870 E PALMDALE BOULEVARD PALMDALE, CA A Signalized Corner 7-Eleven Anchored Strip Center OFFERING MEMORANDUM

2 PRESENTED BY: BRANDON MICHAELS Senior Managing Director of Investments Senior Director, National Retail Group Tel: (818) Fax: (818) License: CA # PROPERTY OVERVIEW FINANCIAL ANALYSIS COMPARABLES ANALYSIS NON-ENDORSEMENT AND DISCLAIMER NOTICE NON-ENDORSEMENTS 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. AREA OVERVIEW ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DE- TAILS. DISCLAIMER THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN AP- PRAISAL. BRANDON MICHAELS This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or GROUP implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. OFFICES NATIONWIDE 2 3

3 EXECUTIVE SUMMARY A Signalized Corner Multi-tenant Strip Center 40% Leased to National Tenants, including 7-Eleven and Yum Yum Donuts The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively market for sale 1870 E. Palmdale Boulevard, a 7-Eleven anchored strip center located on the SW signalized corner of E. Palmdale Boulevard and 20th Street E in Palmdale, CA. The center sits east of the interstate 14 freeway in a main retail corridor of Palmdale. All four signalized corners of E. Palmdale Boulevard and 20th Street E are home to major national retailers, including Vallarta Supermarkets, Shell Gas, Chase Bank, Warehouse Shoe Supply, U.S. Bank, Boost Mobile, Carl s JR., 99 Cents Only, Goodwill, Burger King and the United States Postal Service. The subject property sits just north of Palmdale High School, and there is dense residential surrounding the center E. Palmdale Boulevard is a 9,624 square foot strip center ideally situated on 33,541 square feet of land. Forty percent of the center is anchored by national tenants, 7-Eleven and Yum Yum Donuts. The seasoned tenant mix ideally caters to the surrounding tenants, and the well stabilized tenant roster has solid term remaining on the current leases with options. The average unit size is 1,193 square feet, and the spaces are ideal in their visibility and bay depth, all which eliminates downside risk and minimizes tenant improvement costs between tenants. This solid Palmdale location experiences high daily traffic counts with over 20,000 vehicles passing through the intersection per day. The immediate area has experienced population growth over the past years, and is projecting a 2.7% population growth over the next five years. There are over 145,000 people within a five mile radius, and a median household income of $50, free Surface Parking Spaces are available 3, ,142 Buisnesses within 3-mile radius A 73/100 walkable score: Very Walkable Most errands can be accomplished on foot 4 5

4 25TH ST E PALMDALE HIGH SCHOOL E PALMDALE BLVD 22TH ST E 20TH ST E E PALMDALE BLVD 20TH ST E TAMARISK ELEMENTARY SCHOOL 6 7

5 PROPERTY OVERVIEW PROPERTY SUMMARY Property Address 1870 E Palmdale Blvd Price $3,875,000 CAP Rate 5.82% Price/SF $403 Price/SF (Land) $116 Building SF 9,624 SF Lot Size 33,541 SF LOCATION 1870 E Palmdale Blvd. SITE The subject property is located on the southwest corner of E Palmdale Boulevard and 20th St E SQUARE FOOTAGES The total lot size is 33,541 SF(0.77 acres) ZONING 1870 E Palmdale Boulevard is located within zoning of the zoning is PDC3* Property Type Strip Center APN Year Built 1984 Zoning PDC3* YEAR BUILT The subject property was built in 1984 TRAFFIC COUNTS Intersection of E Palmdale Boulevard and 20th St E: approximately 32,975 per day Type of Ownership Fee Simple PARKING 40 surface parking spaces are available 8 9

6 INVESTMENT HIGHLIGHTS STRONG RETAIL CORRIDOR WITH MULTIPLE NATIONAL RETAILERS IN THE IMMEDIATE AREA Local retailers include Vallarta Supermarkets, Shell Gas, Chase Bank, Warehouse Shoe Supply, U.S. Bank, Boost Mobile, Carl s JR., 99 Cents Only, Goodwill, Burger King and the United States Postal Service. 7-ELEVEN ANCHORED STRIP CENTER 40% of the center is anchored by national tenants, 7-Eleven and Yum Yum Donuts. The seasoned tenant mix ideally caters to the surrounding tenants, and the well stabilized tenant roster has solid term remaining on the current leases with options. SIGNALIZED CORNER LOCATION The center sits east of the interstate 14 freeway in a main retail corridor of Palmdale. All four signalized corners of E. Palmdale Boulevard and 20th Street E are home to major national retailers. IDEAL SHOPPING CENTER LAYOUT 1,193 square foot average unit size and short bay depth protect against downside risk and minimizes tenant improvement costs between tenants. HIGH DAILY TRAFFIC COUNTS This solid Palmdale location experiences high daily traffic counts with over 20,000 vehicles passing through the intersection per day. DENSE IMMEDIATE POPULATION The immediate area has experienced population growth and is projecting a 2.7% population growth over the next five years. There are over 145,000 people within a five mile radius, and a median household income of $50,

7 FINANCIAL ANALYSIS 12 13

8 FINANCIAL ANALYSIS Price $3,875,000 Current CAP Rate 5.82% Price per SF (BLDG) $403 Price per SF (LAND) $116 Building SF Lot Size Property Type PRICING 9,624 SF 33,541 SF Strip Center RENT ROLL TENANT SF BUILDING % LEASE START LEASE EXP OPTIONS BASE RENT RENT/ SF NNN PRICE/ SF NNN % INCREASES LA Chinese Express 680 7% 01/01/2015 1/1/ year $2, $3.00 $ $0.58 4% Annual Liberty Tax 680 7% 09/01/2009 9/30/ year $1, $2.12 $ $ % Annual Lisa Salon 660 7% 01/01/2015 1/1/ year $1, $2.43 $ $0.60 3% Annual Coin Laundry 2,000 21% 06/01/2000 6/30/ year $4, $2.27 $1, $0.80 4% Annual Water Store 840 9% 05/01/2015 4/30/ year $1, $2.11 $ $0.54 4% Annual Pronto General Agency LTD 864 9% 08/01/2013 4/17/ year $1, $1.65 $ $0.54 3% Annual 7 Eleven 2,560 27% 05/01/2013 4/30/ year $ $1.73 $1, $0.59 *See Below Yum Yum Donuts 1,260 13% 04/18/2005 4/17/ year $2, $2.27 $ $0.58 4% Annual TOTAL 9, % $21, $2.26 $ 5, $ * 7-Eleven Lease and Options YEARS MONTHLY RENT RENT/SF New Term: 5/1/2018-4/30/2023 $4, $1.73 Extended Term: 5/1/2023-4/30/2028 $4, $1.89 Extended Term: 5/1/2028-4/30/2033 $5, $2.08 Extended Term: 5/1/2033-4/30/2088 $5, $2.29 ANNUALIZED OPERATING DATA FINANCIAL ANALYSIS APN INCOME AND EXPENSE CURRENT Scheduled Lease Income $241,846 EXPENSES BREAKDOWN PER YEAR PER SF Year Built 1984 NNN Charges $86,616 $48,438 $5.03 Effective Gross Income $328,462 Insurance $6,276 $0.65 Zoning PDC3* Vacancy 5% $16,423 Lighting $1,082 $0.11 Expenses $86,616 Trash $15,392 $1.60 Type of Ownership Fee Simple Net Operating Income $225,423 Maintenance $10,415 $1.08 Loan Payment $167,190 Landscaping $1,035 $0.11 Pre-Tax Cash Flow 3.8% $58,233 Water $3,008 $0.31 Principal Reduction $45,128 Pest Control $972 $ Total Return Before Taxes 6.7% $103,361 Total $86,616 $9.00/$

9 COMPARABLES ANALYSIS 16 17

10 SALES COMPARABLES SALES COMPARABLES PRICE/SF # ADDRESS SALE PRICE PRICE/SF BLDG SF LAND SF ZONING CLOSE OF ESCROW CAP RATE E Palmdale Blvd Palmdale Shopping Center 2101 E Palmdale Blvd Harbor Freight - Palm Knolls Shopping Center 2616 E Palmdale Blvd Palmdale Mart $3,430,000 $ , ,760 C3 7/3/ % $2,650,000 $ ,695 54,014 C3, Palmdale 10/2/ % $2,666,667 $ , ,790 C3, Palmdale 12/22/ Average $2,915,556 $ , , Property #1 Property #2 Property #

11 RENT COMPARABLES RENT COMPARABLES RENT/SF/MONTH # ADDRESS RENT/SF/YEAR RENT/SF/MONTH LEASE TYPE SPACE AVAIL Palmdale Blvd $15 $1.25 NNN 2,000 SF Available in 1 Space E Palmdale Blvd $21 $1.75 NNN 1,350-1,440 SF Available in 2 Spaces E Palmdale Blvd $12 $1.00 NNN 3,094 SF Available in 1 Space E Palmdale Blvd $18 $1.50 NNN ,000 SF Available in 4 Spaces E Palmdale Blvd $24 $2.00 NNN 2,800 SF Available in 1 Space Average $30 $

12 AREA OVERVIEW 22 23

13 PALMDALE, CA Palmdale is a city in the center of northern Los Angeles County in the U.S. state of California. The San Gabriel Mountains separate Palmdale from the City of Los Angeles. On August 24, 1962, Palmdale became the first community in the Antelope Valley to incorporate. 47 years later, in November 2009, voters approved making it a charter city. Its population was 152,750 at the 2010 census, up from 116,670 at the 2000 census. Palmdale is the 33rd most populous city in California. In 2013, the Palmdale / Lancaster urban area had an estimated population of 513,547. ECONOMY The most important industry for Palmdale is the aerospace industry. However, in recent times, other manufacturing companies have relocated to Palmdale seeking more affordable land, proximity to Palmdale Airport, and special tax breaks. A number of world class corporations and manufacturing firms have made Palmdale home, helping to diversify the local economy. Delta Scientific, a world leader in high strength vehicle barrier systems, supplying protection for many federal, state and local buildings, and a prime supplier to the military and US State Department for embassies and other installations worldwide, and US Pole, a major manufacturer of street lighting poles, are major anchor tenants in the Fairway Business Park. The Palmdale Trade and Commerce Center is home to many other major manufacturing, industrial, corporate offices and other employers, as well as home to the Palmdale Auto Mall. ENTERTAINMENT Palmdale and the surrounding communities offer so many things to do and see! Get wet at DryTown Water Park (open Memorial Day weekend through Labor Day weekend). Enjoy golf at one of our championship courses, practice your swing at Mulligan Family Fun Center s batting cages, shop at the fashionable Antelope Valley Mall, or catch the latest blockbuster at Cinemark. Six Flags Magic Mountain is just 45 minutes away; Universal Studios is less than an hour. Disneyland, Knott s Berry Farm and the beach are only 90 minutes away MILE 3 MILES 5 MILES 2018 Population 16,908 93, , Households 4,798 26,454 40, Average Household Size Median Household Income $29,947 $42,288 $50, Average Household Income $40,277 $55,187 $64, Owner Occupied Housing Units 1,886 14,801 25, Renter Occupied Housing Units 2,913 11,653 14,736 <$25,000 2,069 8,268 10,213 $25,000 - $50,000 1,405 6,826 9,588 $50,000 - $75, ,407 7,207 $75,000 - $100, ,599 5,818 $100,000 - $125, ,532 3,054 $125,000 - $150, ,700 $150,000 - $200, ,709 $200,

14 DEMOGRAPHICS 156,823 Total Population of Palmdale, CA. The median age is 30. $64, ,666 $50,808 EDUCATION 50% MALE 50% FEMALE Average HH income within 5-m radius Population within 5-m radius Median HH income within 5-m radius 25.35% 7.13% 10.22% 4.75% High School Graduate Associates Degree Bachelor s Degree Graduate Degree 40,147 Households within a 5-m radius 25,410 Owner Occupied Households within 5-m radius 14,736 Renter Occupied Households within 5-m radius BUSINESSES The special tax breaks granted for companies that relocate to Palmdale is due to the city having the Antelope Valley Enterprise Zone and the Palmdale Federal Foreign Trade Zone. These are special zoning areas within the city that are given various state and federal tax breaks and municipal grant incentives to relocate their business there. TOP EMPLOYERS Lockheed Martin Northrop Grumman Antelope Valley Mall Walmart CarMax Boeing Westside Union School District Palmdale School District Palmdale Regional Medical Center 26 27

15 BRANDON MICHAELS Senior Managing Director of Investments Senior Director, National Retail Group Tel: (818) Fax: (818) License: CA # OFFERING MEMORANDUM