Studebaker Road

South Street

A Single Tenant Net-Leased Mitsubishi Auto Dealership with Eleven Years Remaining on the Lease ideally located on a signalized corner on 1.96 acres of land in the , the World’s largest Auto Mall, in Cerritos, CA Exclusively Listed By:

Brandon Michaels Matthew Luchs Senior Managing Director of Investments First Vice President Investments Senior Director, National Retail Group COO of The Brandon Michaels Group Tel: 818.212.2794 Tel: 818.212.2727 [email protected] [email protected] 04 12 18 CA License: 01434685 CA License: 01948233 Executive Property Area www. BrandonMichaelsGroup .com www. BrandonMichaelsGroup .com Summary Overview Overview Earle Hyman Senior Managing Director Investments Senior Director, National Multi-Family Group Tel: 818.212.2770 [email protected] License #00803521

2 3 AUTO DEALERSHIPS / GAS STATIONS RETAIL / RESTAURANTS

ARTESIA

San Gabriel River Freeway 238,000 vehicles per day

Intersection: 28,000 vehicles per day

Studebaker Road South Street

4 10944 South St Executive Summary 5 Executive Summary The Offering A Single Tenant Net-Leased Mitsubishi Auto Dealership with Eleven Years Remaining on the Lease ideally located on a signalized corner on 1.96 acres of land in the Cerritos Auto Square, the World’s largest Auto Mall, in Cerritos, CA The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively represent for sale 10944 South Street. 10944 South Street is home to Cerritos Mitsubishi, ideally located on the highly trafficked Southwest signalized intersection of South Street and Studebaker Road, with 295 feet of frontage on South Street and 120 feet of frontage on Studebaker Road, and features access from both streets and daily traffic counts north of 28,000 vehicles per day. The subject property is located just one block from the South Street exit of the San Gabriel Freeway, which sees daily traffic counts of 238,000 vehicles per day. The property is located within the world-famous Studebaker Road Cerritos Auto Square, the world’s largest auto mall. Cerritos Auto Square features 22 owns Cerritos Mitsubishi also owns two dealerships located within the half mile additional dealerships in Costa Mesa and strip of Studebaker Road between South Victorville (not associated with the lease South Street Street on the South and the San Gabriel or guarantor) and has been operating I-605 Freeway to the North. In 2019 the successfully for over twenty years. successful auto mall sold a total of 55,380 vehicles. 10944 South Street is an excellent opportunity to purchase a fully stabilized The subject property is home to Cerritos auto dealership with a long track record Mitsubishi on a Triple Net basis through of success at this location ideally located February of 2032, with one ten-year option within the world’s largest auto mall remaining. Mitsubishi has successfully directly off the San Gabriel I-605 Freeway. operated at this location for over nine The property’s location within the Cerritos years since 2/13/2012. Mitsubishi currently Auto Square and close proximity to pays $23,000 per month plus NNN and has the San Gabriel Freeway make this an a scheduled rental increase in February of excellent location for an Auto Dealership. 2022 to $25,000 per month. The family that 6 10944 South St Executive Summary 7 investment highlights 10944 SOUTH ST - CERRITOS MITSUBISHI investment highlights

EXCELLENT LOCATION FOR AN EXCELLENT SINGLE TENANT NET LEASED AUTO DEALERSHIP OPPORTUNITY WITH ZERO MANAGEMENT RESPONSIBILITY • Excellent signalized corner location

• The property is 100% leased to Cerritos Mitsubishi on a • The property’s location within the Cerritos Triple Net basis through February of 2032, with one ten- Auto Square and close proximity to the highly trafficked San Gabriel I-605 Freeway year option remaining make this an excellent location for an Auto • Cerritos Mitsubishi has successfully operated at this Dealership location since February 2012 • 10944 South Street is located just off of • Mitsubishi has a scheduled rental increase in February of the highly trafficked intersection of South Street and Studebaker Road, with 295 feet 2022 to $25,000 per month plus NNN of frontage on South Street and 120 feet of • The family that owns Cerritos Mitsubishi also owns two frontage on Studebaker Road additional dealerships in Costa Mesa and Victorville (not • The subject property features access from associated with the lease or guarantor), and has been both South Street and Studebaker Road operating successfully for over twenty years CERRITOS AUTO SQUARE • Direct Freeway Access IDEALLY LOCATED WITHIN THE CERRITOS AUTO SQUARE, THE WORLD’S LARGEST AUTO AFFLUENT LOCAL SUBMARKET MALL WITH DENSE IMMEDIATE POPULATION • The property is located within Cerritos Auto Square, the world’s largest auto mall • Affluent surrounding demographic with an average income north of $122,000 within one • Cerritos Auto Square features 22 dealerships located within mile the half mile strip of Studebaker Road between South Street on the South (including 10944 South Street) and the San • Over 614,000 people within five miles of the Gabriel Freeway (I-605 Freeway) to the North subject property • Vibrant single family residential market with a • In 2019 the successful auto mall sold a total of 55,380 median home value of over $720,000 within vehicles one mile of the subject property • Most every major import and domestic marque is a part of the Cerritos Auto Mall 8 10944 South St Executive Summary 9 NEARBY AMENITIES AUTO DEALERSHIPS / GAS STATIONS property summary 1. 2. 3. RAM Address 10944 South Street Cerritos, CA 90703 4. 5. Price $6,800,000 6. Jaguar Building Size 16,116 SF 7. Hyundai 8. 4 Lot Size 85,309 SF 6 7 9 3 9. Volkswagen 2 8 10 San Gabriel River Freeway Price/SF (Building) $422 10. GMC 11 238,000 vehicles per day Price/SF (Land) $80 11. 1 5 12 12. 4 Current CAP Rate 4.06% 13. 13 3 14 2022 CAP Rate 4.41% 14. Infinity 15 Tenant Cerritos Mitsubishi 15. Ford 2 1 16. Anthem Oil Guarantor Bazoft Automotive II, LLC (This is a single unit operator) 17. Shell 16 Lease Type NNN

OTHERS Lease Start 2/13/2012 South Street 17 1. Enterprise Lease Expiration 2/29/2032 2. Kaiser Permenante Term Remaining 10.59 Years 3. Northstorm

4. 24 Hour Fitness Studebaker Road Options One (1) 10-Year at $336,000 NNN per Year Rent Increase 2/2022 - $300,000 per year

APN Number 7049-014-011

Zoning CR

10 10944 South St Executive Summary 11 property overview property description LOCATION 10944 South Street Cerritos, CA 90703

SITE The property is located at the SW signalized corner of South Street and Studebaker Road.

BUILDING SIZE 16,116 SF

LOT SIZE CERRITOS COLLEGE 85,309 SF

ZONING CR CERRITOS TOWNE CENTER Studebaker Road APN NUMBER

LOS CERRITOS 7049-014-011 South Street CERRITOS AUTO CENTER SQUARE TRAFFIC COUNTS Intersection of South Street and Studebaker Road: 28,000 vehicles per day

12 10944 South St Property Overview 13 property PHOTOS

14 10944 South St Property Overview 15 lease abstract

Tenant Cerritos Mitsubishi Guarantor Bazoft Automotive II, LLC (This is a single unit operator) Square Footage 16,116 SF Monthly Rent $23,000 Annual Rent $276,000 Rent Per SF $1.43/Month Lease Type NNN Rent Increase 2/2022 - $300,000 per year Options One (1) 10-Year at $336,000 NNN per year Lease Start 2/13/2012 Lease Expiration 2/29/2032 Term Remaining 10.59 Years

tenant profile

Operator Bazoft Automotive II, LLC No. of Locations 3 Website www.cerritosmitsubishi.com

16 10944 South St Property Overview 17 parcel map

San Gabriel River

Studebaker Road

South Street CERRITOS

San Gabriel River Freeway 238,000 vehicles per day

18 10944 South St Property Overview 19 Los Cerritos Center is a super-regional shopping center LOS CERRITOS CENTER area overview featuring 184 stores throughout its 1,022,000 square feet. The center is owned by Macerich and GIC, and is anchored by Macy’s, Nordstrom, Forever 21, Dick’s Sporting Goods, and Harkins Theaters. In addition to its anchor tenants, the center is home to major retailers such as Apple, Amazon Books, Bank of America, Disney, Fabletics, and Guess. The center has ample dining options, such as Pizza Kitchen, The Cheesecake Factory, Chipotle Mexican Grill, Mrs. Fields, P.F. Chang’s, Starbucks, and Yogurtland.

The affluent surrounding demographics feature an average CERRITOS TOWNE CENTER household income of $122,383 within one mile of the property, $106,081 within three miles of the property, and $104,284 within five miles of the property. There are 18,596 people located within one mile of the property, 254,064 people within three miles of the property, and 614,026 people within five miles of the property. There are 6,034 households located within one mile of the property, 78,587 households within three miles of the property, and 188,068 within five miles of the property. CERRITOS, CA Location CERRITOS TOWNE CENTER 10944 South Street is The Cerritos Auto Square features 22 dealerships within the Primelocated within the World’s half mile strip of Studebaker Road between South Street on the South (including 10944 South Street) and the San Gabriel Largest Auto Mall, the Freeway (I-605 Freeway) to the North. In 2019 the successful Cerritos Auto Square, auto mall sold a total of 55,380 vehicles. The Cerritos Auto among 22 dealerships Square accounts for a significant amount of tax revenue located within the half mile to the city of Cerritos, allowing for ample public amenities strip of Studebaker Road within the area.

10944 South Street is located across the San Gabriel River Freeway (I-605 Freeway) from the Los Cerritos Center. The

20 10944 South St Area Overview 21 Cerritos, California Cerritos is a city in Los Angeles County, California, United States, and is one of several cities that constitute the of southeast Los Angeles County. It was incorporated on April 24, The Subject Property is located within 1956. The two major sources of revenue for Cerritos are a retail sales tax and interest income from its general fund. The World’s Largest Auto Mall

Cerritos Auto Square is proud to be the world’s largest auto mall. Conveniently located in Cerritos, CA next to the 605 freeway with interchanges of the 91, 405, LOS CERRITOS CENTER 5 and 105 freeways close by, we are here to serve both Los Angeles County and Orange County. Cerritos Auto Square boasts the largest selection of new, pre-owned, and certified pre-owned with almost 10,000 vehicles in stock on any given day.

With side-by-side dealerships and 22 all in one place, Cerritos Auto Square is the perfect place to do all your shopping The dealers at Cerritos Auto Square consistently rate among the highest in customer satisfaction and quality of service. We’ve been serving the local communities of Cerritos, Lakewood, Bellflower, Long Beach, Anaheim, Buena Park, Paramount, Norwalk, Cypress, Westminister and the entire South Bay for over 30 years. And because of the reputation for outstanding service and low prices, Cerritos has become the favorite destination for auto shoppers throughout all of - from the San Fernando and San Gabriel Valleys, to the Beach and the Mountain communities. CERRITOS CENTER FOR THE PERFORMING ARTS CERRITOS TOWNE CENTER

22 10944 South St Area Overview 23 Development Pipeline Map SHOPPING Subject Property

• A|X ARMANI Under Construction 2 EXCHANGE 1 • ABERCROMBIE & FITCH • ADIDAS • ALDO • AMERICAN EAGLE OUTFITTERS • APPLE STORE • BANANA REPUBLIC • BATH & BODY WORKS • CHAMPS SPORTS • CLAIRE’S

Spacious shopping center offers a range of -name retailers, plus well-known chain restaurants. DINING

• THE BUFFALO SPOT • CALIFORNIA PIZZA - 0.6 MILE FROM THE SUBJECT PROPERTY LOS CERRITOS CENTER KITCHEN The Los Cerritos Center is a super regional shopping The original goal of the center was to bring thousands • THE CHEESECAKE mall located in Cerritos, California. Since September of dollars of sales tax revenue to the city of Cerritos. In FACTORY 1971, the Los Cerritos Center has been an integral its first four years, the city of Cerritos’ retail sales grew • CHICK-FIL-A part of the city of Cerritos’ tax revenue. The mall is tenfold, topping over $207 million in 1974. • CHIPOTLE the city’s largest revenue source, producing $581 per MEXICAN GRILL square foot in sales ($296 million total) in 2010. The tax Since the end of 2015, the center has been • GREAT KHAN’S revenue generated from the Los Cerritos Center for its undergoing a large-scale renovation, which brought MONGOLIAN host city totals to approximately $3 million a year. The in new anchors such as Dick’s Sporting Goods and B.B.Q. DEVELOPMENT PROJECTS CURRENTLY UNDER CONSTRUCTION facility is owned by Macerich & GIC Private Limited. Harkins Theatres, in-line stores, remodeled interiors, • LAZY DOG PROPERTY NAME DEVELOPER UNITS STORIES START YEAR FINISH YEAR At its opening, the Los Cerritos Center was one of the new furnishings and lighting, exterior landscaping, as RESTAURANT & BAR 1 Alivia 11201 Carmenita Rd, Whitters, CA 90605 Storm Properties 128 3 2020 2022 area’s first shopping malls and was noted for its high well as art work and overall re-branding. • NORDSTROM CAFE 2 Park Place 14660 Whittier Blvd, Whittier, CA 90605 Western Residential Partners LLC 50 3 2017 2022 quality maintenance and complete climate-controlled BISTRO AVERAGE 178 6 - - environment.

24 10944 South St Area Overview 25 CERRITOS, CA DEMOGRAPHICS DEMOGRAPHICS BY RADIUS

MEDIAN AGE 1-MILE 3-MILE 5-MILE CERRITOS’ 18,596 254,064 614,026 TOTAL POPULATION 2021 Population 44 2021 Households 6,034 78,587 188,068 50%MALE 50%FEMALE 2021 Average Household 49,399 3.1 3.2 3.2 $122,383 614,026 Size Average HH income Population EDUCATION within a 1-mile radius within a 5-mile radius Annual Growth 2021-2026 -0.2% -0.2% -0.2% 2021 Median Age 43 37.9 37.2 2021 Owner Occupied 4,617 48,413 114,270 Households 2021 Renter Occupied 1,361 29,285 71,584 114,270 71,584 Households 25% 19% Owner Occupied Housing Renter Occupied Housing 2021 Average Household Less than High School Graduate Bachelor’s39 or% Associate Graduate17% Degree $122,383 $106,081 $104,284 within a 5-mile radius within 5-mile radius Income High School Graduate 2021 Median Household $102,049 $86,019 $84,349 Income Businesses 1,326 8,150 23,367

188,068 23,367 Households Businesses within a 5-mile radius within a 5-mile radius

26 10944 South St Area Overview 27 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. © 2018 Marcus & Millichap. All rights reserved.

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