780 INLAND CENTER DRIVE OFFERING MEMORANDUM. 780 Inland Center Drive, San Bernardino, CA Offered At: $2,575,000

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1 780 INLAND CENTER DRIVE OFFERING MEMORANDUM 780 Inland Center Drive, San Bernardino, CA Offered At: $2,575,000

2 PRESENTED BY MIKE LIN Retail Specialist 9471 Haven Avenue, Suite 110 Rancho Cucamonga, CA T C Mike@ProgressiveREP.com CalDRE # BROKER CO-OPERATION Progressive Real Estate Partners recognizes and appreciates the importance of co-operating brokers in the industry that actively represent prospective buyers. It is our goal to work closely with these brokers and share our fee with them, although this fee is not always shared equally due to certain circumstances. We are pleased inform buyer s broker of the co-operating fee for this listing or any of our other listings upon request. It is our policy to NOT share our fee with buyers/principals that are licensed brokers as our experience has been that we do just as much if not more work in these situations and then get paid substantially less as a result. 2

3 INVESTMENT SUMMARY 780 Inland Center Drive, San Bernardino, CA PROPERTY HIGHLIGHTS Located directly across the street from the Inland Center Mall, the premier shopping destination in the area. Offered well below replacement cost - less than $80/SF! Value-add opportunity: Lease the space that will be vacated by Kelly Paper for immediate upside Easy freeway access - located at the Inland Center Drive ramp to I-215 Adrenaline Martial Arts recently signed a new lease at this location and has been in operation for 10 years Guadalajara Furniture is a local chain of furniture stores with four locations throughout the Inland Empire, and has been in business for 20 years. This is a high performing location for them Extremely low NNN expenses of $0.15/sf/mo OFFERING SUMMARY Sale Price: $2,575,000 Proforma Net Operating Income: $217,552 Proforma Cap Rate: 8.45% Current Net Operating Income: $119,313 Current Cap Rate: 4.6% Asking Price/SF: $76.39 Building Size/Total Land Area: 33,708 SF / 1.38 Acres Building Occupancy: 68% 3

4 REGIONAL MAP 780 Inland Center Drive, San Bernardino, CA

5 RETAILER MAP 780 Inland Center Drive, San Bernardino, CA

6 SITE PLAN 780 Inland Center Drive, San Bernardino, CA

7 RENT ROLL 780 Inland Center Drive, San Bernardino, CA UNIT Tenant Information Lease Term Rent Summary Miscellaneous LEASE ORIGINAL TENANT SF % END RENT/MO RENT/SF/ % OF ANNUAL RENT INCREASES OPTIONS TYPE START MO INCOME Vacant (Proforma) NNN 10, % $7,102 $ % $85, A-B Adrenaline Martial Arts Gross 12, % 3/1/18 5/30/21 $7,789 $ % $93,470 3/1/20: $8, None 780C Guadalajara Furniture Gross 9, % 3/1/18 5/31/23 $5,500 $ % $66,000 ACTUAL OCCUPANCY 22, % $13,289 $ % $159,470 PROFORMA (FULL OCCUPANCY) 33, % $20,391 $0.60 $244,693 3/1/19: $5, /1/20: $5, /1/21: $6, /1/22: $6, One 5-year at Fair Market Value 7

8 INCOME & EXPENSES 780 Inland Center Drive, San Bernardino, CA Occupied Square Footage: 22,782 33,708 REVENUE CURRENT PROFORMA Base Annual Rent: $159,470 $244,693 Expense Reimbursements: $0 $13,016 Gross Operating Income: $159,470 $257,710 OPERATING EXPENSES CURRENT PROFORMA Insurance $7,319 $7,319 City of San Bernardino - Fire Service $519 $519 City of San Bernardino - Water Service $572 $572 Gardening Service $1,680 $1,680 Phone line for alarm system $1,036 $1,036 Alarm System $1,532 $1,532 Property Taxes* $27,500 $27,500 Total: $40,157 $40,157 NNN/SF/mo: $0.10 NNN/SF/mo: $0.10 NET OPERATING INCOME: $119,313 $217,552 *Property Taxes adjusted for new owner at est 1.1% of purchase price 8

9 INLAND CENTER MALL 780 Inland Center Drive, San Bernardino, CA INLAND CENTER MALL The Inland Center is an enclosed regional shopping destination featuring popular brands. The Center is conveniently located next to the I-215 freeway and is in the heart of the Inland Empire, in San Bernardino. In 1966, Inland Center was built by Homart Development Company, and was most recently renovated in The Mall has over 869,000 square feet of retail space. When the Inland Center opened, it was built to house three anchor tenants, but amongst its continuing growth, the center had to make room for more tenants. 165,000 square feet was added to accommodate a fourth anchor tenant, Macy s, which remains an anchor tenant today. The Mall is within one mile of the three bordering cities of Redlands, Colton, and Loma Linda. The Mall draws customers from Redlands, Rialto, Highland, and other nearby cities reaching a trade area of 880,726 people. As the Inland Empire region continues to see high job growth, Inland Center anticipates continued growth. The Mall is a single level mall anchored by Macy s, Sears, Forever 21, and JCPenney alongside over 100 specialty shops and services. Inland Center is home to additional retailers such as Bed Bath & Beyond, Hollister, and Sephora. Though the main Mall only covers one floor, anchors such as Sears and Macy s have two stories, and Forever 21 has three. Inland Center continues to grow as they plan to welcome new tenants such as H&M and Burgerim in the near future. 9

10 TENANT DESCRIPTIONS 780 Inland Center Drive, San Bernardino, CA Adrenaline Martial Arts & Fitness is the largest training facility in the Inland Empire. Adrenaline pride itself on having the best trainers in the Inland Empire. It caters to clients of all ages and skill levels. With more than 25 classes taught per week, Adrenaline Martial Arts continually draws clients to its facility. Clients come from the surrounding cities Colton, Highland, Bloomington, Rialto, Grand Terrace, Loma Linda, Redlands, Fontana and Riverside. Adrenaline Martial Arts also hosts MMA, Boxing, Wrestling, Jiu Jitsu Shows throughout the year. The company creates an environment that is friendly to families as well as individuals. It has a 4.5 rating from 259 loyal customers on Facebook. Web site: Guadalajara Furniture seeks to offer premium furniture for the bedroom, living room, and dining room at reasonable prices. The company has been in business for over 20 years. With locations in San Bernardino, Montclair, Fontana, and Riverside, Guadalajara Furniture prides itself on providing the Inland Empire with the highest quality furniture. Guadalajara Furniture offers various styles and colors to meet the needs of a variety of customers, as well as providing options for kid s rooms. Guadalajara Furniture prides itself on providing great customer service that helps customers find the furniture that fits their needs. Web site: 10

11 ADDITIONAL PHOTOS 780 Inland Center Drive, San Bernardino, CA

12 MARKETPLACE PROFILE 780 Inland Center Drive, San Bernardino, CA CITY OF SAN BERNARDINO The City of San Bernardino serves as the county seat of San Bernardino County and has an estimated population of 216,100. San Bernardino is the 17th-largest city in California, and the 100th-largest city in the United States. California State University, San Bernardino (CSUSB) is a major university located in the northwestern part of the city, and has an enrollment of over 20,000 students. Other attractions in San Bernardino include ASU Fox Theatre, the McDonald's Museum, which is located on the original site of the world's first McDonald's, California Theatre, the San Bernardino Mountains, and San Manuel Amphitheater, the largest outdoor amphitheater in the United States. In addition, the city is home to the Inland Empire 66ers baseball team, which plays its home games at San Manuel Stadium in downtown San Bernardino. Government, retail, and service industries dominate the economy of the city of San Bernardino. From 1998 to 2004, San Bernardino s economy grew by 26,217 jobs, a 37% increase, to 97,139. Government was both the largest and the fastest-growing employment sector, reaching close to 20,000 jobs in Other significant sectors were retail (16,000 jobs) and education (13,200 jobs). The city s location close to the Cajon and San Gorgonio passes, and at the junctions of the I-10, I-215, and SR-210 freeways, positions it as an intermodal logistics hub. Large warehouses for Kohl s, Mattel, Pep Boys, and Stater Bros. have been developed near the San Bernardino International Airport. Amazon opened its first distribution center in California in San Bernardino in 2012 and has since built a second distribution center in the city. San Bernardino offers several parks and other recreation facilities. Perris Hill Park is the largest park in the city. Other notable parks include the Glen Helen Regional Park, Blair Park, and Little Mountain. San Bernardino is primarily served by the San Bernardino City Unified School District, the eighth largest school district in California. 12

13 TRADE AREA OVERVIEW 780 Inland Center Drive, San Bernardino, CA INLAND EMPIRE The Inland Empire is comprised of San Bernardino & Riverside Counties and is currently home to about 4.5M people with growth expected to exceed 5M people within the next 5 years. The Inland Empire has the 24th largest economy in the United States with $134B of economic activity. Job growth is currently in excess of 3% per year making the region 2nd in job growth only to the Silicon Valley region of California. Distributing & warehousing are major components of the Inland Empire s growth as the Inland Empire is one of the largest industrial markets in the country with over 500M square feet of industrial buildings. Employment continues to increase with the unemployment rate now below 6.5%. Leading the job growth is logistics, professional employment, health care, education and leisure & hospitality. The Inland Empire has averaged 50,000 new jobs in each of the past 3 years and now employs over 1.35M people. The result of this job & income growth is record taxable sales. The region is also home to many top colleges and universities including The Claremont Colleges, University of California Riverside, Cal Poly Pomona, University of Redlands, University of La Verne, California Baptist University, La Sierra University, Cal State San Bernardino, and numerous community colleges. Home prices are a major competitive advantage of the region with the median home price at approximately $285,000 compared to Los Angeles County at $575,000 and Orange County at $655,000. Even the cost of housing in the high income areas of the Inland Empire are moderate in comparison with median home prices as follows: Chino Hills ($587,000), Claremont ($628,000), Redlands ($351,300), Temecula ($398,200) and Corona ($439,000). 13

14 DEMOGRAPHICS 780 Inland Center Drive, San Bernardino, CA

15 DEMOGRAPHICS 780 Inland Center Drive, San Bernardino, CA