2 NNN Assets with 50,000 SF of Land GARNET AVENUE
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4711 MISSION BAY DRIVE 2804 GARNET AVENUE 2 NNN assets with 50,000 SF of land Kipp Gstettenbauer, CCIM Brandon Keith Ryan King Senior Vice President | Lic. #01405420 Senior Vice President | Lic #011177792 Vice President | Lic. #01885401 858.458.3345 | [email protected] 858.458.3326 | [email protected] 858.458.3322 | [email protected] GARNET AVENUE BALBOA AVENUE MISSION BAY DRIVE TABLE OF CONTENTS Executive Summary Investment Summary 4 Lease Abstract 4 Parcel Map & Zoning 7 Competitive Sets 10 Tenant Profile Overview 14 McDonalds 16 GARNET AVENUE 76® (Phillips 66) 20 Market Overviews MISSION BAY DRIVE Amernities Aerial 26 San Diego Trolley Expansion 28 Pacific Beach Overview 32 Mission Bay Overview 33 San Diego Overview 34 Demographics 35 EXECUTIVE SUMMARY TREMENDOUS UPSIDE SUPERB INGRESS / EGRESS The close proximity to Mission Bay Park, Mission Bay Golf Course & Located on the AM side of Garnet Avenue and Mission Bay Practice Center and to the future Balboa Avenue Trolley Stop and Drive, this asset is accessed by four (4) different curb cuts amenities provide to complement the coastal lifestyle, and include a at a signalized intersection. public plaza for the community to gather and enjoy. UNPARALLELED LOCATION Situated at the gateway to San Diego’s Mission Bay Park in the Pacific Beach community with direct access to Interstate 5 and in close proximity to Interstate 8 and Highway 52. LOCATION. LOCATION. LOCATION. Arguably one of, if not, the busiest intersections in the City of San Diego. INVESTMENT SUMMARY McDONALD’S CORPORATION, a Delaware Corporation 4711 Mission Bay Drive, San Diego, CA 92109 We are pleased to offer qualified investors a rare opportunity to acquire a COMMENCEMENT DATE June 1, 2000 fee simple (land and building) property BUILDING SF 3,234 SF leased to McDonald’s [NASDAQ:MCD], LOT SF 36,154 SF & 76 (Phillips 66) [NASDAQ:PSX]. The BASE RENT $11,865.24 /mo. NNN 12.5% property is located in an exceptional BASE RENT INCREASES One (1) Year and Two (2) months area of San Diego, California in arguably LEASE TERM REMAINING OPERATING EXPENSES Tenant is full triple net and covers all taxes, maintenance, one of, if not, the busiest intersection in and insurance. the City of San Diego. OPTION TO EXTEND Four (5) five year options with 12.5% increases. This asset is superbly located just 2 » Option 1: $13,348.40 September 1, 2020 - August 31, 2025 » Option 2: $15,016.95 September 1, 2025 - August 31, 2030 miles west from the Pacific Ocean in the » Option 3: $16,894.07 September 1, 2030 - August 31, 2035 » Option 4: $19,005.83 September 1, 2035 - August 31, 2040 affluent community of Pacific Beach, just South of San Diego’s pristine La Jolla Cove and just north of San 76® (Phillips 66) Diego’s coveted Mission Bay. The site is 2804 Garnet Avenue, San Diego, CA 92109 situated off Garnet Avenue and Mission COMMENCEMENT DATE April 1, 1990 Bay Drive and surrounded by residents BUILDING SF 2,329 SF from Pacific Beach, Clairemont, Bay LOT SF 14,600 SF Park, and Mission Bay. The 5-mile BASE RENT $16,729.63 /mo. NNN radius of households is close to 146,110. BASE RENT INCREASES 15% Owned under the same private family LEASE TERM REMAINING One (1) Year and One (1) month trust since the early 1900’s, the Harris OPERATING EXPENSES Tenant is full triple net and covers all taxes, maintenance, and insurance. Family Trust has decided to sell and OPTION TO EXTEND Two (2) five year options with 15% increases. all go their own seperate ways. No 1031 » Option 1: $16,729.63 August 1, 2015 - July 31, 2020 Exchange will be entered into. » Option 2: $19,239.07 August 1, 2020 - July 31, 2025 163,000 ADT Balboa Avenue Trolley Station INTERSTATE 5 BALBOA AVENUE 147,000 ADT MISSION BAY DRIVE LIST PRICE $9,150,000 37,440 ADT CAP RATE 4.27% 2020 NET 62,418 ADT OPERATING INCOME $391,049.64 Both tenants are corporate signature, full triple net covering all property GARNET AVE maintenance, property insurance and property taxes. MISSION BAY DRIVE Less than a I-5 minute away Freeway Access VERY CLOSE PROXIMITY TO BALBOA AVENUE TROLLEY STATION Somwhat 86 Walkable Walking Score Very 86 Bikeable Bike Score PARCEL MAP & SUMMARY 49,901 SQ. FT. TOTAL COMBINED LAND PARCEL NO. (APN) 424-572-02-00 424-572-03-00 TENANT McDonald's Corporation 76® (Phillips 66) PROPERTY ADDRESS 4711 Mission Bay Drive, San Diego, CA 92109 2804 Garnet Avenue, San Diego, CA 92109 BUILDING SF 3,336 SF 2,329 SF LOT SF 36,154 SF (0.83 Acres) 13,747 SF (0.32 Acres) LAND USE General Commercial General Commercial ZONING CODE CC-4-2 or IL-3-1* CC-4-2 ZONING HIGHLIGHTS CC-4-2. Intended to accommodate development with high intensity, strip commercial characteristics and permits a maximum density of 1 dwelling unit for each 1,500 square feet of lot area. Permitted Use. Multifamily, school, retail, drive-thru, parking, office, and (all) auto. MULTI-FAMILY 1 DU / 1,500 SF MAX SETBACKS 10 feet (interior side) / 10 feet (rear) FAR 2.0 MAX HEIGHT 60 feet IL-3-1*. Intended to permit a range of uses, including nonindustrial uses in some instances. Permitted Use. Allows a mix of light industrial, office, and commercial uses. CUP. Marijuana Outlet; not allowed within 1,000 ft of the following: resource and population-based City parks; churches; child care centers; playgrounds; City libraries; minor-oriented facilities; other Marijuana Outlets; residential care facilities; or schools (as defined in SDMC Section 141.0504) FAR 2.0 Max Setbacks Rear Street Side Interior Side Front Minimun 25 feet 25 feet 10 feet 20 feet Garnet Avenue Mission Bay Drive Balboa Avenue SALE COMPARABLES 1 2 3 4 5 ADDRESS: 1850 5TH AVENUE 925 ORANGE AVENUE 26241 AVERY PARKWAY 5716 ATLANTIC BLVD 8200 PARKWAY DRIVE San Diego, CA 92101 Coronado, CA 92118 Mission Viejo, CA 92692 Maywood, CA 90270 La Mesa, CA 91942 BUYER: JJ San Diego, LLC Rosvold Properties, LLC Theresa Matias Asia Sea Investments, Inc. Kumiva Group, LLC SELLER: HP Investors MetLife, Inc. Pacific Castle, Inc. Elliot Megdal & Associates Midtown National Group TENANT: CVS Walgreens Del Taco Starbucks Chick-fil-A SALE DATE: January 2018 November 2013 May 2018 November 2017 March 2018 SALE PRICE: $9,425,000 $7,740,000 $4,100,000 $3,868,000 $3,670,000 AVG. PRICE PSF: $939.87 /SF $815.60 /SF $1,863.64 /SF $2,148.89 /SF $810.87 /SF CAP RATE: 3.70% 3.90% 3.72% 3.99% 3.79% BUILDING SIZE: 10,028 SF 9,490 SF 2,200 SF 1,800 SF 4,526 SF LAND AREA: 24,829 SF [0.57 AC] 27,878 SF [0.64 AC] 153,000 SF [3.51 AC] 16,361 SF [0.38 AC] 41,382 SF [0.95 AC] LAND PRICE PSF: $379.60 /SF $277.64 /SF $26.80 /SF $236.42 /SF $82.69 /SF YEAR BUILT / RENOV.: 1965 1975 1991 2017 2017 PARKING RATIO: 3.3/1,000 SF 4.0/1,000 SF 6.4/1,000 SF Undisclosed Undisclosed 6 7 8 9 10 ADDRESS: 569 H STREET 1359 GARNET AVENUE 420 NORTH COAST HIGHWAY 1702 MISSION AVENUE 2780 GARNET AVENUE Chula Vista, CA 91910 San Diego, CA 92109 Oceanside, CA 92054 Oceanside, CA 92058 San Diego, CA 92109 BUYER: Vachaspathi Palakodeti KLNB Harry Guzelimian Scott G Stone Baba Partners, LLC SELLER: Matt Moser Edward E Colson III Trust Andy Hirmez Blake Megdal Ent SD, LLC TENANT: Chipotle Starbucks Circle K Starbucks Enterprise Rent-A-Car SALE DATE: January 2015 October 2018 March 2019 July 2016 March 2019 SALE PRICE: $3,125,000 $3,100,000 $2,645,000 $2,600,000 $2,300,000 AVG. PRICE PSF: $813.80 /SF $2,019.54 /SF $1,255.94 /SF $3,058.82 /SF $1,533.33 /SF CAP RATE: 4.00% 3.90% 4.00% 3.90% 3.57% BUILDING SIZE: 3,840 SF 1,535 SF 2,106 SF 850 SF 1,500 SF LAND AREA: 12,632 SF [0.29 AC] 9,374 SF [0.22 AC] 10,018 SF [0.23 AC] 17,049 SF [0.39 AC] 16,117 SF [0.37 AC] LAND PRICE PSF: $247.39 /SF $330.70 /SF $264.02 /SF $152.50 /SF $142.71 /SF YEAR BUILT / RENOV.: 2014 1979 1973 2016 2012 PARKING RATIO: 8.9/1,000 SF 7.8/1,000 SF 5.5/1,000 SF Undisclosed Undisclosed TENANT PROFILE MCDONALD’S CORPORATION [A-Credit Rating] 4711 Mission Bay Drive, San Diego, CA 92109 The subject site is a rare opportunity to acquire a 3,234 SF free standing building located in the heart of Pacific Beach situated on 36,154 SF of land. This freestanding drive-thru is one of the most rare drive-thru’s in all of the Pacific Beach area and situated on the entrance and exit of Interstate 5. Any person entering in to Pacific Beach, must pass by this location. The initial lease term is for twenty (20) years, and another twenty years of options consisting of four (4) five (5) year options to extend at 12.5% annual increases. There is no better real estate in the entire Pacific Beach area for a Drive-Thru McDonalds. There is also no other real estate that can be put together in a better area to create a drive thru which makes McDonalds unable to relocate to another location if they ever wanted too.