USA CHECKS CASHED Fontana, California
A CORPORATE NET LEASED INVESTMENT
Offering Memorandum NON-ENDORSEMENT & DISCLAIMER NOTICE
CONFIDENTIALITY & 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 pros- pects 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 spon- sorship 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. USA CHECKS CASHED Fontana, California
EXCLUSIVELY LISTED BY
PAUL A. BITONTI First Vice President Investment Newport Beach, California Office (949) 419 - 3246 Mobile (714) 267 - 8582 [email protected] License CA 01325076
OFFICES NATIONWIDE AND THROUGHOUT CANADA WWW.MARCUSMILLICHAP.COM
USA CHECKS CASHED Fontana, California
TABLE OF CONTENTS
EXECUTIVE SUMMARY COMPETITIVEV COMPARABLES SECTION 1 SECTION 4 01 Investment Overview • Investment Highlights 23 Sales Comparables • Rent Comparables
PROPERTY DESCRIPTION MARKET OVERVIEW SECTION 2 SECTION 5 07 Property Details • Regional Map • Property Photos 33 Location Overview • Location Highlights Market Aerial • Demographics
FINANCIAL ANALYSIS SECTION 3 15 Pricing Details • Operating Data • Rent Roll
EXCLUSIVELY LISTED BY: This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID EXECUTIVE SUMMARY
USA CHECKS CASHED Fontana, CA USA CHECKS CASHED - Fontana, CA // EXECUTIVE SUMMARY // CA - Fontana, CHECKS CASHED USA
1 OFFERING SUMMARY USA CHECKS CASHED - Fontana, CA // EXECUTIVE SUMMARY
Marcus & Millichap is pleased to present a USA Checks Cashed Single Tenant Net Leased Investment. The property consists of 1,524 square feet sitting on a .28 acre parcel. The real estate is well positioned at the signalized intersec- tion of Sierra Avenue and Randall Avenue where traffic counts exceed 42,300 cars per day. The building consists of concrete block with points of ingress and egress on both Sierra Avenue and Randall Avenue with a parking field for a 5 to 1 parking ratio. Neighboring tenants include, 7-11, WSS, Pizza Hut, Kaiser Per- manente and 99 Cents Only showing the strength of this location. The property is adjacent to both the I-10 (249,000 cars per day) and I-15 freeway (210,000 cars per day) interchanges. Population density exceeds 367,099 people in a 5-mile radius.
USA Checks Cashed has been at this location since 1999 and the investment is an absolute net leased single tenant, corporate guaranty. The offering is an above market 6.50% Cap rate with 10% rent increases every 5 years. The primary term will be 10 years and executed at the close of escrow with options to renew.
2 3 USA CHECKS CASHED - Fontana, CA // EXECUTIVE SUMMARY USA CHECKS CASHED - Fontana, CA // EXECUTIVE SUMMARY
INVESTMENT HIGHLIGHTS
►► USA Checks Cashed - NNN Leased Investment
►► 6.50 % Cap Rate
►► 10% Rent Increases every 5 years
►► Brand New 10-year Lease Term, with Options to Renew
►► Corporate Guaranty, Ease of Management
►► Hard Signalized Corner of Baseline St and Arrowhead Avenue
►► Population of 367,009 in 5-Mile Ring
4 NEW 10-YEAR CORPORATE LEASE WITH OPTIONS TO RENEW
10% RENT INCREASES EVERY 5 YEARS
HARD SIGNALIZED CORNER LOCATION 42,300 CARS PER DAY
367,009 EXECUTIVE SUMMARY // CA - Fontana, CHECKS CASHED USA POPULATION IN 5-MILE RING 5 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID PROPERTY DESCRIPTION
USA CHECKS CASHED Fontana, CA USA CHECKS CASHED - Fontana, CA // PROPERTY DESCRIPTION PROPERTY // CA - Fontana, CHECKS CASHED USA
7 PROPERTY DETAILS USA CHECKS CASHED - Fontana, CA // PROPERTY DESCRIPTION 9311 Sierra Avenue Address Fontana, CA 92335
APN 0194-091-28
Price $1,292,000
Buildings 1
Price Per Square Foot $847.77
GLA 1,524 SF
CAP Rate 6.50%
Year Built 1999
Lot Size 12,127 SF
Number of Parking 9 Spaces
Parking Ratio 5 : 1
Zoning CG - Commercial General
Net Operating Income $84,000
108 9 USA CHECKS CASHED - Fontana, CA // PROPERTY DESCRIPTION PROPERTY LOCATION USA CHECKS CASHED - Fontana, CA // COMPARABLE PROPERTIES
10 Randall Avenue 8,300 Daily Traffic
34,000 Daily Traffic
Sierra Avenue USA CHECKS CASHED - Fontana, CA // COMPARABLE PROPERTIES COMPARABLE // CA - Fontana, CHECKS CASHED USA
11 PROPERTY SITE PLAN
12 9311 Sierra Ave, Fontana, CA 92335 Tax Map
PROPERTY TAX MAP
13
Limitation of Liability for Informational Report
IMPORTANT – READ CAREFULLY:THIS REPORT IS NOT AN INSURED PRODUCT OR SERVICE OR A REPRESENTATION OF THE CONDITION OF TITLE TO REAL PROPERTY. IT IS NOT AN ABSTRACT, LEGAL OPINION, OPINION OF TITLE, TITLE INSURANCE COMMITMENT OR PRELIMINARY REPORT, OR ANY FORM OF TITLE INSURANCE OR GUARANTY. THIS REPORT IS ISSUED EXCLUSIVELY FOR THE BENEFIT OF THE APPLICANT THEREFOR, AND MAY NOT BE USED OR RELIED UPON BY ANY OTHER PERSON. THIS REPORT MAY NOT BE REPRODUCED IN ANY MANNER WITHOUT FIRST AMERICAN’S PRIOR WRITTEN CONSENT. FIRST AMERICAN DOES NOT REPRESENT OR WARRANT THAT THE INFORMATION HEREIN IS COMPLETE OR FREE FROM ERROR, AND THE INFORMATION HEREIN IS PROVIDED WITHOUT ANY WARRANTIES OF ANY KIND, AS-IS, AND WITH ALL FAULTS. AS A MATERIAL PART OF THE CONSIDERATION GIVEN IN EXCHANGE FOR THE ISSUANCE OF THIS REPORT, RECIPIENT AGREES THAT FIRST AMERICAN’S SOLE LIABILITY FOR ANY LOSS OR DAMAGE CAUSED BY AN ERROR OR OMISSION DUE TO INACCURATE INFORMATION OR NEGLIGENCE IN PREPARING THIS REPORT SHALL BE LIMITED TO THE FEE CHARGED FOR THE REPORT. RECIPIENT ACCEPTS THIS REPORT WITH THIS LIMITATION AND AGREES THAT FIRST AMERICAN WOULD NOT HAVE ISSUED THIS REPORT BUT FOR THE LIMITATION OF LIABILITY DESCRIBED ABOVE. FIRST AMERICAN MAKES NO REPRESENTATION OR WARRANTY AS TO THE LEGALITY OR PROPRIETY OF RECIPIENT’S USE OF THE INFORMATION HEREIN. Page 1 (of 1) 4/24/2018 Tax Map 9311 Sierra Ave, Fontana, CA 92335
©2005-2018 First American Financial Corporation and/or its affiliates. All rights reserved. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID FINANCIAL ANALYSIS
USA CHECKS CASHED Fontana, CA US BANK - Salt Lake City // EXECUTIVE SUMMARY City // - Salt Lake US BANK USA CHECKS CASHED - Fontana, CA // FINANCIAL ANALYSIS FINANCIAL // CA - Fontana, CHECKS CASHED USA
1715 ANNUAL RENT INCREASE
THE OFFERING RENT SCHEDULE Property USA Checks Cashed YEAR ANNUAL RENT MONTLY RENT ANNUAL RENT / SF Property Address 9311 Sierra Ave Year 1 $84,000.00 $7,000.00 $55.12 Fontana, CA 92335 Year 2 $84,000.00 $7,000.00 $55.12 Price $1,292,000 Year 3 $84,000.00 $7,000.00 $55.12 Capitalization Rate 6.50% Year 4 $84,000.00 $7,000.00 $55.12 Price/SF $847.77 Year 5 $84,000.00 $7,000.00 $55.12 Year 6 $92,400.00 $7,700.00 $60.63
PROPERTY DESCRIPTION Term Primary Year 7 $92,400.00 $7,700.00 $60.63 Year Built 1999 Year 8 $92,400.00 $7,700.00 $60.63 Gross Leasable Area 1,524 SF Year 9 $92,400.00 $7,700.00 $60.63 Zoning CG- Commercial General Year 10 $92,400.00 $7,700.00 $60.63 Type of Ownership Fee Simple Year 11 $101,640.00 $8,470.00 $66.69 Year 12 $101,640.00 $8,470.00 $66.69 LEASE SUMMARY Year 13 $101,640.00 $8,470.00 $66.69
Property Subtype Net Leased Bank Option 1 Year 14 $101,640.00 $8,470.00 $66.69 Tenant USA Checks Cashed Year 15 $101,640.00 $8,470.00 $66.69 Rent Increases Base Term and Option Terms Year 16 $111,804.00 $9,317.00 $73.36 Guarantor Corporate Guarantee Year 17 $111,804.00 $9,317.00 $73.36 Lease Type NNN Year 18 $111,804.00 $9,317.00 $73.36
Lease Commencement Close of Escrow Option 2 Year 19 $111,804.00 $9,317.00 $73.36 Lease Expiration 10 years after COE Year 20 $111,804.00 $9,317.00 $73.36 Lease Term 10 Years Year 21 $122,984.40 $10,248.70 $80.70 Terms Remaining on Lease 10 Years Year 22 $122,984.40 $10,248.70 $80.70 Renewal Options 3 (5-year) Options Year 23 $122,984.40 $10,248.70 $80.70
Landlord Responsibility None Option 3 Year 24 $122,984.40 $10,248.70 $80.70 Tenant Responsibility Taxes, Maintenance, Insurance Year 25 $122,984.40 $10,248.70 $80.70 Right of First Refusal/Offer None
16 ANNUAL CASH FLOW
17 18 TENANT SUMMARY
Tenant Name USA Checks Cashed
Lease Commencement Close of Escrow
Lease Expiration 10 Years from COE
Gross Leasable Area 1,524 SF
Option Term 3 (5-year)
Pro Rata Share of Project 100%
Headquartered Washington, DC
No. of Locations 90+
Website www.usacheckcashingstore.com
USA Check Cashing Store is one member of a family of Financial Service / Lending Companies including, USA Checks Cashed, USA Check Cash- ing Store, MO Payday Loans and AAA1 Auto Title Loans, operating more than 90 stores in California, Illinois, Missouri and Wisconsin. Since 2000, USA Check Cashing Store has built its reputation as “Your Local 1-Stop Short Term Financial Lending Center” throughout Northern Illinois, Southern Illinois (St. Louis, MO area) and Southern Wisconsin USA Check Cashing Store has over 22 conveniently located stores to serve you. Over 500,000 customers have come to rely on the courteous and experienced staff at each of our stores. USA Check Cashing Store Service Specialists go through a rigorous training program, so they can provide you exceptional service and put their knowledge to work to help you determine the best loan to meet your needs.
19 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID COMPARABLE PROPERTIES
USA CHECKS CASHED Fontana, CA USA CHECKS CASHED - Fontana, CA // COMPARABLE PROPERTIES COMPARABLE // CA - Fontana, CHECKS CASHED USA
21 USA CHECKS CASHED - Fontana, CA // COMPARABLE PROPERTIES
SALES COMPARABLES
PROPERTY NAME SALE DATE PRICE CAP RATE PRICE PER FOOT
USA Checks Cashed - Fontana Just Listed $1,292,000 6.50% $847.77
Circle K - Fullerton 8/11/2017 $1,950,000 4.73% $698.05
7-Eleven - San Diego 8/21/2017 $1,900,000 4.79% $790.68
Circle K - Poway 5/30/2017 $1,750,000 5.59% $722.84
Circle K - San Bernardino In Escrow $2,600,000 N/A $989.72
22 4
1
3
2 USA CHECKS CASHED - Fontana, CA // COMPARABLE PROPERTIES COMPARABLE // CA - Fontana, CHECKS CASHED USA
23 SALES COMPARABLES USA CHECKS CASHED - Fontana, CA // COMPARABLE PROPERTIES
USA CHECKS CASHED - FONTANA 1 CIRCLE K - FULLERTON 9311 Sierra Ave, Fontana, CA 92335 911 N Placentia Ave, Fullerton, CA 92831
SALES PRICE $1,292,000 SALES PRICE $1,950,000
Sale Date Just Listed Sale Date 8/11/2017
Year Built 1999 Year Built 1968
Cap Rate 6.50% Cap Rate 4.73%
Price Per SF $847.77 Price Per SF $750.00
ADDITIONAL INFO ADDITIONAL INFO
Gross Leasable Area 1,524 SF Gross Leasable Area 2,600 SF
Lot Size 12, 127 SF Lot Size 9,095 SF
24 2 7-ELEVEN - SAN DIEGO 3 CIRCLE K - POWAY 8508 San Carlos Dr, San Diego, CA 92119 14147 Twin Peaks Rd, Poway, CA 92064
SALES PRICE $1,900,000 SALES PRICE $1,750,000
Sale Date 8/21/2017 Sale Date 5/30/2017
Year Built 1970 Year Built 1974
Cap Rate 4.79% Cap Rate 5.59%
Price Per SF $790.68 Price Per SF $722.84
ADDITIONAL INFO ADDITIONAL INFO
Gross Leasable Area 2,403 SF Gross Leasable Area 2,421 SF
Lot Size 9,953 SF Lot Size 13,939 SF USA CHECKS CASHED - Fontana, CA // COMPARABLE PROPERTIES COMPARABLE // CA - Fontana, CHECKS CASHED USA
25 SALES COMPARABLES USA CHECKS CASHED - Fontana, CA // COMPARABLE PROPERTIES
4 CIRCLE K - SAN BERNARDINO 2734 Del Rosa Ave, San Bernardino, CA 92404
SALES PRICE $2,600,000
Sale Date In Escrow
Year Built 1984
Cap Rate N/A
Price Per SF $989.72
ADDITIONAL INFO
Gross Leasable Area 2,627 SF
Lot Size 17,424 SF
26 Average $813.31
Average 5.04% USA CHECKS CASHED - Fontana, CA // COMPARABLE PROPERTIES COMPARABLE // CA - Fontana, CHECKS CASHED USA
27 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID MARKET OVERVIEW
USA CHECKS CASHED Fontana, CA USA CHECKS CASHED - Fontana, CA // MARKET OVERVIEW MARKET // CA - Fontana, CHECKS CASHED USA
29 COUNTY OVERVIEW USA CHECKS CASHED - Fontana, CA // MARKET OVERVIEW San Bernardino County is the largest county in the contiguous United States: The county covers more than 20,000 square miles of land. There are 24 cities and towns in the county and multiple unincorporated areas. The county is bordered by Los Angeles, Orange, Riverside, Inyo and Kern counties as well as the Arizona and Nevada state lines. Interstates 10, 40, and 15, the major vehicle and truck routes into Southern California all travel through San Bernardino County as do the major rail freight routes. San Bernardino County has a population of 2.1 million people and a total of 705,700 wage and salary jobs. The per capita income is $34,414 and the average salary per worker is $54,046. There are at least 35 official wilderness areas in the county that are part of the National Wilderness Preservation System. This is the largest number of any county in the United States. Places of interest within the County include: The Mojave National Preserve, Calico Ghost Town, Zzyzx - a small desert settlement that used to be a health spa and is now the Desert Studies Center, Joshua Tree National Park, San Bernardino National FOrest - home to Big Bear Lake outdoor activities, Goldstone Deep Space Communications Complex, Snow Summit and Bear Mountatin Ski Resort.
Fontana Center Stage Theater
30 MAJOR EMPLOYERS AIRPORTS
Kaiser Permanente San Bernardino International Airport
Fontana Unified School District LA/ Ontario International Airport
City of Fontana Southern California Logistics Airport Target Apple Valley Airport, Baker Airport, Barstow-Daggett Airport, Chino Airport, Needles Airport Manheim Auctions Big Bear City Airport, Cable Airport, Redlands Municiple Airport American Security Products
Coronado Stone Products MAJOR ROADWAYS Firth Rixson
Interstate 10, 15, 40, 215 State Route 15, 95, 395, 2, 18, 38, 58, 60, 62, 66, 71, 83, 127, 138, 142, 173, 178, 189, 247, 259, 330
CITY OVERVIEW
Fontana is a city in San Bernardino County, California. During World War II, entrepreneur Henry J. Kaiser built a large steel mill in the area. It is now a regional hub of the trucking industry, with Interstate 10 and State Route 210 transecting the city from east to west, and Interstate 15 passing diagonally through its northwestern quadrant. It is home to the largest of the San Bernardino County system libraries, a renovated historic theater, a municipal park, and the Auto Club Speedway on the site of the Kaiser Steel Mill. Fontana also hosts the Fontana Days Half Marathon and 5K run. This race is the fast- est half-marathon course in the world. Fontana's current economy is driven largely by industrial uses, particularly truck- ing-based industries. The city is home to several truck dealerships, and other industrial equipment sales centers, and, like its neighbors Ontario and Rancho Cucamonga, many product distribution centers for such companies as Toyota, Target, Sears, Mercedes-Benz, Southern California Edison, Home Shopping Network, and Avery Dennison. The city is also home to numerous small manufacturers of building materials and other locally used products, and many small auto dealerships and salvage yards. Fontana's economy has also heavily encouraged the planning, developing and construction of new housing
tracts. The city also has numerous local shopping centers, such as the Summit Heights Gateway/Falcon Ridge Town Center OVERVIEW MARKET // CA - Fontana, CHECKS CASHED USA at the north end of the city, and Palm Court in the southern section. The city also features commercial strip zoning along several of its major avenues and boulevards, such as the "Miracle Mile" Straddling the 210 Freeway between Citrus and Sierra Avenues. The official Fontana Auto Center is part of that zone, with two major dealerships already in place. 31 USA CHECKS CASHED - Fontana, CA // MARKET OVERVIEW DEMOGRAPHICS HIGHLIGHTS 367,009 5-MILE POPULATION
$65,283 AVERAGE HOUSEHOLD INCOME
90,790 HOUSEHOLDS
32 POPULATION 1-MILE 3-MILES 5-MILES 2000 Population 25,364 142,292 272,164 2010 Population 28,270 168,032 335,173 2015 Population 29,332 173,801 347,070 2020 Population 29,803 180,465 367,009
INCOME 1-MILE 3-MILES 5-MILES
Average $52,869 $59,049 $65,283
Median $41,400 $14,248 $16,202
Per Capita $13,733 $12,005 $14,240
HOUSEHOLDS 1-MILE 3-MILES 5-MILES 2000 Households 7,195 47,142 91,297 2010 Households 7,712 40,400 93,689 2015 Households 8,138 42,529 98,416 2020 Households 8,262 42,940 99,795 USA CHECKS CASHED - Fontana, CA // MARKET OVERVIEW MARKET // CA - Fontana, CHECKS CASHED USA
33 USA CHECKS CASHED Fontana, CA
EXCLUSIVELY LISTED BY
PAUL BITONTI First Vice President Investments Newport Beach Cell 714.267.8582 Office 949.419.3246 [email protected] License CA 01325076