INVESTMENT OPPORTUNITY LITTLE CAESARS NEW BTS CONSTRUCTION | CORPORATE GUARANTEE PICO RIVERA CA (LOS ANGELES COUNTY)
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OFFERED AT: $1,192,900 | 5% CAP EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
TABLE OF CONTENTS
EXECUTIVE SUMMARY 4 Executive Summary 5 Investment Highlights 6 Lease Summary & Rent Overview 7 Lease Abstract
PROPERTY INFORMATION 9 Location Maps 10 Site Plan 11 Aerials
TENANT OVERVIEW 17 About Little Caesar’s
AREA OVERVIEW 19 Pico Rivera Overview 20 Los Angeles County Overview 21 Demographics
Confidentiality Agreement & Disclosures
EXCLUSIVELY REPRESENTED BY
RYAN BARR | Principal RYAN BENNETT | Principal 760.448.2446 760.448.2449 [email protected] [email protected] CA DRE Lic#01338994 CA DRE Lic#01826517
Color Scheme
RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47
RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65
Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT
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LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 2 EXECUTIVE SUMMARY LITTLE CAESARS PICO RIVERA, CA
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 3 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
• Offering Summary • Investment Highlights Lease Summary & Rent Schedule Lease Abstract
-- OFFERING SUMMARY --
INVESTMENT HIGHLIGHTS Offering Price: $1,192,900 Net Operating Income: $59,645 Cap Rate: 5% Price/SF: $952 Lease Type: NN Lease Commencement: November 1, 2018 (Estimated) PROPERTY OVERVIEW Address: 9209 Telegraph Rd Pico Rivera, CA Property Size: Approx 1,252 Sq. Ft. Land Size: 0.16 Acre Ownership: Fee Simple Year Built: 2018
Lee & Associates is pleased to exclusively offer for sale the fee simple interest (land & building) in a retail investment property leased to Little Caesar’s located in Pico Rivera, in Los Angeles County, California (the “Property”). The build to suit property is currently under construction and will consist of a 1,252-square-foot retail building with a drive-thru that sits on an approximately 0.16-acre parcel. The subject property is leased to Little Caesar Enterprises, Inc., dba Little Caesar’s, the third-largest pizza chain in the United States, behind Pizza Hut and Domino’s Pizza. The company operates and franchises 5,463 pizza restaurants in the United States and internationally in Asia, the Middle East, Australia, Canada, Latin America and the Caribbean. The new 5-year net lease is expected to commence in November 2018, and features 10% rent increases in the (4) 5-year option periods. The net lease requires minimal landlord responsibilties, offering an investor a passive income stream with solid rent growth. The subject property is situated on a hard corner signalized intersection along Telegraph Rd, offering outstanding signage and visibility to 26,000+ cars per day. Telegraph Rd is a major retail/commuter corridor in the area, offering quick access to Interstate 5 just a few blocks from the site. Additionally, the property is located in a dense infill location, with nearly 62,000 households within a 3-mile radius of the site. Little Caesar’s is located in Pico Rivera, a city in Los Angeles County, California only 11 miles southeast of downtown Los Angeles. Pico Rivera is a thriving community that offers opportunities to all who live and work in the City and is home to a balanced mix of homes, businesses and recreational facilities. Industrial and commercial uses are attracted to Pico Rivera, thanks in large part to the easy access provided by three freeways - Interstate 605 (San Gabriel Freeway), Interstate 5 (Santa Ana Freeway) and Interstate 60 (Pomona Freeway). The City of Pico Rivera was awarded the “Most Business-Friendly City in Los Angeles County” in 2016, reflecting its commitment to economic development, excellence in programs and services to facilitate business entry, expansion and retention, and availability of economic incentives for area businesses. It is the home of the US Corporate Headquarters for Aurora World (toys) and BakeMark (bakery ingredients), as well as top employers Bimbo Bakeries, Cintas and Southern California Material Handling. The Water Replenishment District of Southern California recently completed a $110 million water recycling plant in Pico Rivera, built by J.F. Shea Construction, a Walnut-based developer. The plant is a giant step for Los Angeles County, which will no longer Representative Photo of Interior need water pumped from Northern California or the Colorado River in order to serve its 4 million customers.
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
Offering Summary • Investment Highlights • Lease Summary & Rent Schedule Lease Abstract
-- INVESTMENT HIGHLIGHTS --
DESIRABLE NATIONAL TENANT: LITTLE CAESAR’S • 3RD LARGEST PIZZA CHAIN IN THE UNITED STATES • NEW BUILD TO SUIT CONSTRUCTION • DRIVE THRU The subject property is leased to Little Caesar Enterprises, Inc., dba Little Caesar’s,the third-largest pizza chain in the United States, behind Pizza Hut and Domino’s Pizza. The company operates and franchises 5,463 pizza restaurants in the United States and internationally in Asia, the Middle East, Australia, Canada, Latin America and the Caribbean. The new building is currently under construction and features a drive-thru lane. NEW 5-YEAR NET LEASE • MINIMAL LANDLORD RESPONSIBILITIES • RENT GROWTH The new 5-year net lease is expected to commence in November 2018, and features 10% rent increases in the (4) 5-year option periods. The net lease requires minimal landlord responsibilties, offering an investor a passive income stream with solid rent growth. HARD CORNER SIGNALIZED INTERSECTION • MAJOR COMMUTER CORRIDOR • DENSE INFILL LOCATION The subject property is situated on a hard corner signalized intersection along Telegraph Rd, offering outstanding signage and visibility to 26,000+ cars per day. Telegraph Rd is a major commuter corridor in the area, offering quick access to Interstate 5 just a few blocks from the site. Additionally, the property is located in a dense infill location, with nearly 62,000 households within a 3-mile radius of the site. LOCATED IN CITY OF PICO RIVERA • MINUTES FROM DOWNTOWN LOS ANGELES • BUSINESS-FRIENDLY CITY The subject property is located in Pico Rivera, a city in Los Angeles County, California only 11 miles southeast of downtown Los Angeles. Pico Rivera is a thriving community that is home to a balanced mix of homes, businesses and recreational facilities. The City of Pico Rivera was awarded the “Most Business-Friendly City in Los Angeles County” in 2016, reflecting its commitment to economic development, excellence in programs and services to facilitate business entry, expansion and retention, and availability of economic incentives for area businesses. It is the home of the US Corporate Headquarters for Aurora World (toys) and BakeMark (bakery ingredients), as well as top employers Bimbo Bakeries, Cintas and Southern California Material Handling. REVITALIZED CITY • NEW SHOPPING & COMMUNITY DEVELOPMENT • SITE OF NEW $110-MILLION WATER TREATMENT PLANT There has been significant redevelopment in the city, with the opening of the Pico Rivera Towne Center, a 60-acre open-air shopping complex; Pico Crossing, a 2.79-acre shopping center; and, the Pico Rivera Village Walk, a $22 million, 12-acre shopping center located at the southwest corner of Whittier and Paramount boulevards. The Water Replenishment District of Southern California recently completed a $110 million water recycling plant in Pico Rivera, built by J.F. Shea Construction, a Walnut-based developer. The plant is a giant step for Los Angeles County, which will no longer need water pumped from Northern California or the Colorado River in order to serve its 4 million customers.
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
Offering Summary Investment Highlights • Lease Summary & Rent Schedule • Lease Abstract
-- LEASE SUMMARY --
LEASE INFORMATION
TENANT: Little Caesar Enterprises, Inc. dba Little Caesar’s
GUARANTOR: Corporate
BUILDING SIZE: 1,252 Sq. Ft.
LOT SIZE: 0.16 Acre
RENT COMMENCEMENT (Estimated): November 1, 2018
LEASE EXPIRATION: October 31, 2023
BASE LEASE TERM: 5 Years
RENEWAL OPTIONS: (4) 5-Year Options
LEASE TYPE: NN
LANDLORD RESPONSIBILITIES: Roof & Structure
RENT INCREASES: 10% Increases in Each Option Period
ANNUAL RENT: $59,645.28
-- RENT SCHEDULE --
RENT SCHEDULE
TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR
Years 1 - 5 11/1/2018 10/31/2023 $59,645.28 $4,970.44 $47.64
OPTION PERIODS - (4) 5-Year Options
TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR
Option 1 11/1/2023 10/31/2028 $65,609.76 $5,467.48 $52.40
Option 2 11/1/2028 10/31/2033 $72,170.76 $6,014.23 $57.64
Option 3 11/1/2033 10/31/2038 $79,387.80 $6,615.65 $63.41
Option 4 11/1/2038 10/31/2043 $87,326.64 $7,277.22 $69.75
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 6 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
Offering Summary Investment Highlights Lease Summary & Rent Schedule • Lease Abstract •
-- LEASE ABSTRACT --
Tenant agrees to pay Landlord all taxes (“Taxes”) levied and assessed during the term of t his Lease upon the Parcel. Tenant shall pay one-twelfth (I/12th) of the amount estimated by Landlord to the Tenant’s share of Property Taxes: the Property Taxes with each monthly installment of minimum annual rent due hereunder.
Tenant shall in all events look to Landlord for the completion of all such Common Area Maintenance: (i) the maintenance and repairs of the Common Areas within the Project, including, without limitation, the following: resurfacing, restriping; painting; maintenance, repair and replacement when necessary of sidewalks; curbs, bumpers, lighting and other utilities; operation, maintenance and repair of any common fire protecting systems, automatic sprinkler system, sewer lines, and storm drainage systems; personnel to implement such service including the cost of security guards; police and fire protection services; (ii) the maintenance of the Common Areas so that they are accessible to, and usable by, individuals with disabilities in accordance with all applicable laws relating to disabled access, including without limitation the ADA and any state regulations for accessibility for individuals with disabilities; (iii) maintaining signs, markers, painted lines, and other means and methods of pedestrian and vehicular traffic control; (iv) maintaining adequate roadways, entrances and exits; (v) maintaining any plantings an’d landscaped areas; Common Area Maintenance: (vi) carrying a public liability insurance policy for the Common Areas, which policy will name Landlord and Tenant as an additional insureds. (vii) the periodic removal of all trash and waste from the trash receptacle located within the Common Areas on the Adjacent Parcel as depicted in the REA; (viii) the maintenance and repair of the Shared Monument Sign serving the Parcel and the Adjacent Parcel as depicted in the REA; and (ix) the maintenance and repair, to the extent necessary, of the party wall constructed on the boundary of the Parcel and the Adjacent Parcel and which serves as a demising wall to segregate the Premises from the building improvements located on the Adjacent Parcel. All actual, reasonable and necessary, out-of-pocket costs and expenses incurred in connection with the Common Area Maintenance by the Managing Party under the REA are hereinafter referred to as the “Common Area Maintenance Costs.”
Tenant shall reimburse Landlord for payment of its proportionate share of the Common Area Maintenance Costs in the percentage set forth in the REA, which shall be paid by Landlord as and when and in the manner set forth in the REA. At all times during the term of this Lease, Tenant shall maintain in full force and effect with commercially reasonable insurance companies licensed to do business in the State of California, one or more policies evidencing the following coverage, with any liability policies naming Landlord as additional insured and including a cross liability endorsement: 1) General public liability and worker’s compensation insurance against claims for bodily injury, death or property damage occurring within the Premises with combined single limit ofnot less than $2,000,000.00 2) property insurance for its trade fixtures, equipment inventory and other personalty on the Premises at no less than eighty percent (80%) of its replacement cost. Insurance: Tenant agrees to reimburse Landlord for the costs of the following Landlord’s insurance to the extent not included in Common Area Maintenance Costs: a) Property Insurance b) Liability Insurance
Utilities: Tenant shall pay for all water, gas, power and electric current and all other utilities used by Tenant on the Premises from and after the delivery of possession thereof by Landlord.
Landlord at its sole cost and expense shall keep in good order, condition and repair (including replacement) all overhead utilities and service lines, foundations and structural portions of the building containing the Premises, exterior walls ( excluding the interior of all walls and the exterior and interior of any windows, doors, plate glass and display windows) and roof ( excluding interior ceiling) of the building containing the Landlord Maintenance & Repairs: Premises, except for any structural alterations or improvements required by any government agency by reason of Tenant’s particular manner of use and occupancy of the Premises (as opposed to use for general retail and restaurant purposes).
Tenant shall, during the term of this Lease, keep the Premises, including all improvements constructed by Tenant therein, in good order, condition and repair, including the interior surface of exterior walls; all windows, Tenant Maintenance & Repairs: doors, door frames, and door closures; all plate glass, storefronts and showcases; all floor, carpeting and other floor covering; all electrical equipment; all heating and air conditioning equipment; and all plumbing and sprinkler systems, if any, installed therein; and shall as necessary, or when required by governmental authority, make modification or replacements thereof to the extent located within the Premises.
Tenant shall, at any time and from time to time, within twenty (20) days after request by the holder of any mortgage on the Premises, certify in writing that this Lease is unmodified and in full force and effect, (or, ifthere Estoppel Certificate: has been a modification, that the same is in full force and effect as modified and stating the modification); the dates, if any, to which Rent has been paid in advance; and whether Landlord is or is not in default in the performance of any covenant, condition or agreement on its part to be performed and the nature of the default, if any.
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 7 PROPERTY INFORMATION LITTLE CAESARS PICO RIVERA, CA
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 8 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
Location Maps Site Plan • Aerials •
-- LOCATION MAPS --
BURBANK
TO DOWNTOWN LOS ANGELES PICO RIVERA PASADENA UNIVERSAL CITY GLENDALE 11 MILES
TELEGRAPH RD BEVERLY HILLS MONTEREY PARK LOS ANGELES
SANTA MONICA
LAKEWOOD BLVD PICO RIVERA HUNTINGTON PARK WHITTIER
DOWNEY
DOWNEY EL SEGUNDO
GARDENA FLORENCE AVE
TORRANCE
Pacific Ocean CYPRESS
LONG BEACH TO ANAHEIM 16 MILES
PALOS VERDES
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 9 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
Location Maps Site Plan • Aerials •
-- SITE PLAN -- * LOT SPLIT COMPLETED. POPEYES IS AVAILABLE FOR SALE AND CAN BE PURCHASED WITH THE LITTLE CAESAR’S.
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 10 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
Location Maps Site Plan • Aerials •
LAKEWOOD BLVD (36,000 CPD) -- OVERHEAD VIEW -- ON RAMP OFF RAMP
234,000 CPD OFF RAMP VILLAGE APARTMENTS
CARE MORE MEDICAL GROUP
GLENBROOK DOWNEY APARTMENTS
SERAPIS AVE TELEGRAPH RD (26,000 CPD)
KIMBERLY THOR APARTMENTS
CLAYMORE ST
SUNFLOWER APARTMENTS SERAPIS AVE
CITY LINE PET CLINIC TELEGRAPH RD (26,000 CPD) RIVERA PHARMACY CLAYMORE ST
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 11 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
Location Maps Site Plan • Aerials •
SUNSHINE LIBERTY BAKEMARK GRM DOCUMENT -- LOOKING NORTH -- PLASTICS LINEHAUL WEST CD CONTAINER MGMT UNISOURCE FIRST SOURCE AURORA EMPIRE CLEANING SOLUTIONS CNS IMPORTS FULFILLMENT CHAMPION LOGISTICS WORLD PARTS AUTHORITY JOHNSTONE CAL RECYCLE LUMUX LIGHTING WORLD GROUP BARRETT PACIFIC LOGISTICS SUPPLY SLAUSON AVE CINTAS DISTRIBUTION COLONIAL GARDENS JAY BHARAT PARTS CHANNEL NURSING HOME SEVILLE MCKINNEY FOODS GF HEALTH APARTMENTS TRAILER RENTALS PARAMOUNT BLVD PRODUCTS RIVERA FLATRATE MOVING NITROPLANES ROCKET FARMS 711 ROSEMEAD BLVD ENDPAK ELEMENTARY HERBS PACKAGING BIRCH ELLEN OCHOA SERVICE STEEL ORBIT RUSH TRUCK APARTMENTS SCHOOL TELEGRAPH RD (26,000 CPD) AEROSPACE CORP APARTMENTS PREPARATORY ACADEMY INTERNATIONAL CENTER REEVE STORE EQUIPMENT DOWNEY PLAZA CENTRAL FREIGHT STUDIO CLUB APARTMENTS PARAMOUNT BLVD LINES SLAUSON AVE APARTMENTS CORSICA APARTMENTS GLEN HAVEN PLAZA DE LA RAZA COLLARO APARTMENTS CHILD DEVELOPMENTPAVILLION SERVICES APARTMENTS APARTMENTS PAVILION COURT APARTMENTS ROSEMEAD BLVD (36,000 CPD) MAGEE ACADEMY OF SERAPIS AVE ARTS & SCIENCES
CARE MORE MEDICAL GROUP ON RAMP VILLAGE APARTMENTS
LAKEWOOD BLVD (36,000 CPD)
ON RAMP GLENBROOK DOWNEY Representative Property KIMBERLY THOR CITY LINE OFF RAMP APARTMENTS APARTMENTS TELEGRAPHPET RD CLINIC (26,000 CPD) RIVERA SERAPIS AVE PHARMACY CLAYMORE ST
PASSONS BLVD 234,000 CPD SUNFLOWER APARTMENTS
BROOKFIELD UNSWORTH HEALTHCARE ELEMENTARY SCHOOL CENTER TAMPICO MOTEL TELEGRAPH APARTMENTS GILMER GRAPHICS
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 12 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
Location Maps Site Plan • Aerials •
RUBEN SALAZAR PIONEER HIGH SCHOOL EL RANCHO -- LOOKING EAST -- HIGH SCHOOL HIGH SCHOOL
RIVERA PARTS AUTHORITY ELEMENTARY SCHOOL AURORA PACIFIC LOGISTICS SLAUSON AVE FIRST SOURCE MAIZELAND GRM DOCUMENT WORLD PARTS CHANNEL MGMT CITY OF PICO RIVERA SCHOOL GF HEALTH BARRETT PRODUCTS PARKS & REC DISTRIBUTION ENDPAK REEVE STORE ST MARIANNE DE PACKAGING EQUIPMENT 711 ROSEMEAD BLVD PAREDES SCHOOL COLLARO STEAM ACADEMY ORANGE AVE APARTMENTS SLAUSON AVE APARTMENTS PASSONS BLVD AT BURKE STUDIO CLUB CORSICA RIVERA RUSH TRUCK APARTMENTS APARTMENTS PARK CENTER CENTRAL FREIGHT ORBIT LINES INTERNATIONAL MAGEE ACADEMY OF ARTS & SCIENCES
BIRNEY TECH ACADEMY
SERAPIS AVE
PASSONS BLVD ROSEMEAD BLVD (36,000 CPD) Representative Property
CLAYMORE ST CLAYMORE ST GARDENS BAR & GRILL
CITY LINE RIVERA TAMPICO GILMER PET CLINIC PHARMACY MOTEL GRAPHICS TELEGRAPH RD (26,000 CPD) TELEGRAPH RD (26,000 CPD) CARE MORE KIMBERLY THOR TELEGRAPH MEDICAL GROUP SUNFLOWER BROOKFIELD APARTMENTS APARTMENTS APARTMENTS HEALTHCARE CENTER
GLENBROOK DOWNEY APARTMENTS VILLAGE APARTMENTS UNSWORTH ELEMENTARY SCHOOL
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 13 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
Location Maps Site Plan • Aerials •
-- LOOKING SOUTH -- FLORENCE AVE SANTA FE SANTA FE SPRINGS HIGH SCHOOL AQUATIC CENTER LAKEVIEW ELEMENTARY SCHOOL
FLORENCE AVE
DOTY MIDDLE SCHOOL
TELEGRAPH RD (26,000 CPD) DOWNEY NORTH APARTMENTS
BIRNEY TECH ACADEMY GARDENS BAR & GRILL GILMER TELEGRAPH GRAPHICS APARTMENTS 234,000 CPD TAMPICO BROOKFIELD MOTEL HEALTHCARE UNSWORTH CENTER ELEMENTARY SCHOOL PASSONS BLVD CLAYMORE ST SUNFLOWER APARTMENTS RIVERA PHARMACY CITY LINE KIMBERLY THOR PET CLINIC APARTMENTS
GLENBROOK DOWNEY APARTMENTS
OFF RAMP
TELEGRAPH RD (26,000 CPD) ON RAMP
SERAPIS AVE VILLAGE APARTMENTS Representative Property
CARE MORE MEDICAL GROUP
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 14 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
Location Maps Site Plan • Aerials • WOODCREEK APARTMENTS GRIFFITHS PARAMOUNT BLVD MIDDLE SCHOOL MAUDE PRICE -- LOOKING WEST -- ELEMENTARY SCHOOL
FLORENCE AVE PARAMOUNT BLVD
BROOKSHIRE AVE GALLATIN ELEMENTARY SCHOOL GALLATIN SCHOOL HOUSE RD ARIZONIAN APARTMENTS BROOKSHIRE APARTMENTS LAKEWOOD BLVD (36,000 CPD) DOWNEY TOWNHOMES PARC@5 APARTMENTS OFF RAMP ON RAMP
ON RAMP 234,000 CPD LAKEWOOD BLVD (36,000 CPD) PAVILION COURT ON RAMP APARTMENTS OFF RAMP TELEGRAPH RD (26,000 CPD) VILLAGE APARTMENTS CARE MORE ROSEMEAD BLVD (36,000 CPD) MEDICAL GROUP
GLENBROOK DOWNEY APARTMENTS UNSWORTH SERAPIS AVE ELEMENTARY SCHOOL
KIMBERLY THOR APARTMENTS
SUNFLOWER APARTMENTS
CITY LINE BROOKFIELD TELEGRAPH PETRD CLINIC(26,000 CPD) HEALTHCARE RIVERA CENTER PHARMACY
TELEGRAPH CLAYMORE ST APARTMENTS Representative Property
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 15 TENANT OVERVIEW LITTLE CAESARS PICO RIVERA, CA
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 16 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
• About Little Caesars •
-- ABOUT LITTLE CAESARS --
Little Caesar Enterprises Inc. (doing business as Little Caesars) is the third-largest pizza chain in the United States, behind Pizza Hut and Domino’s Pizza. It operates and franchises 5,463 pizza restaurants in the United States and internationally in Asia, the Middle East, Australia, Canada, Latin America and the Caribbean. The company is based in Detroit, Michigan, headquartered in the Fox Theatre building in Downtown. Little Caesars Pizza was founded on May 8, 1959, by Mike Ilitch and his wife Marian Ilitch. The first location was in a strip mall in Garden City, Michigan, a suburb of Detroit, and named “Little Caesar’s Pizza Treat.” The original store is still open today. The company is famous for its advertising catchphrase, “Pizza! Pizza!” which was introduced in 1979. The phrase refers to two pizzas being offered for the comparable price of a single pizza from competitors. Starting in 2004, the chain began offering “Hot-N-Ready”, a large pepperoni pizza sold for $5. The concept was successful enough to become a permanent fixture of the chain, and Little Caesars’ business model has shifted to focus more on carryout. Today, Little Caesars is the fastest-growing carryout pizza chain in the U.S. and an internationally known brand. Little Caesar Enterprises, Inc. operates as a subsidiary of Ilitch Holdings, Inc.
LITTLE CAESARS CONSISTENTLY RANKS IN THE QSR “TOP FIFTY”
In the limited-service restaurant industry, success is rarely a given. Performance ebbs and flows. Trends come and go. New competitors gobble up market share one year and then fade into oblivion the next. To make it as one of the most successful companies in this industry, restaurants must run the gauntlet of challenges necessary to scaling a concept, from establishing a loyal customer base to forming committed stakeholder relationships, and from building an efficient supply chain to navigating potential threats to the business. Indeed, only those companies that have put in the time and sweat equity can lay claim to being the biggest and the best in a $234 billion industry. Little Caesars has consistently ranked in the Top Fifty for the past decade, rising from #25 in 2010 to #18 in 2017.
ILITCH HOLDINGS, INC. (www.ilitchholdings.com) Ilitch Holdings, Inc., was established in 1999 to provide professional services to certain businesses that were founded or purchased by Detroit entrepreneurs Mike and/or Marian Ilitch. The Ilitch companies represent leading brands in the food, sports and entertainment industries, including Little Caesars, Blue Line Distribution, the Detroit Red Wings, Olympia Entertainment, the Detroit Tigers, Olympia Development, Little Caesars Pizza Kit Fundraising Program and Champion Foods. The organization also has a joint venture interest in 313 Presents. Additionally, Marian Ilitch owns MotorCity Casino Hotel. The companies collectively employ 23,000 fulltime and part-time employees worldwide and have 371 million customer interactions annually. In 2017, the organization’s total combined revenue was $3.6 billion.
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 17 AREA OVERVIEW LITTLE CAESARS PICO RIVERA, CA
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 18 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
• Pico Rivera Overview • Los Angeles County Overview Demographics
-- PICO RIVERA --
Pico Rivera is a city located in southeastern Los Angeles County, California. Situated on the eastern edge of the Los Angeles basin and the southern edge of the area known as the San Gabriel Valley, Pico Rivera is approximately 11 miles southeast of downtown Los Angeles. Pico Rivera is a thriving community that offers opportunities to all who live and work in the City. Incorporated in 1958 by residents of two adjacent historic communities, Pico and Rivera, the once agricultural area is now home to a balanced mix of homes, businesses and recreational facilities. Industrial and commercial uses continue to be attracted to Pico Rivera, thanks in large part to the easy access provided by three freeways - Interstate 605 (San Gabriel Freeway), Interstate 5 (Santa Ana Freeway) and Interstate 60 (Pomona Freeway) - access to the City via two railway systems - the Burlington Northern Santa Fe Railway, and the Union Pacific Railroad - and the close proximity of world-class port and airport facilities. The City of Pico Rivera was awarded the “Most Business-Friendly City in Los Angeles County” in 2016, reflecting its commitment to economic development, excellence in programs and services to facilitate business entry, expansion and retention, and availability of economic incentives for area businesses. It is the home of the US Corporate Headquarters for Aurora World (toys) and BakeMark (bakery ingredients), as well as top employers Bimbo Bakeries, Cintas and Southern California Material Handling.
A REVITALIZED CITY WITH NEW GROWTH AND REDEVELOPMENT There has been significant redevelopment in the city, such as the opening of the “Pico Rivera Towne Center“”, a 60-acre open-air shopping complex along Washington Boulevard, that has brought in such well-known businesses as Starbucks, Petsmart, Lowe’s, Walmart, Walgreens, Del Taco and other businesses into the city. Pico Crossing is a 2.79-acre shopping center with retailers that include Rite-Aid Pharmacy, Starbucks, and Subway. Noteworthy redevelopment has taken place in recent years along historic Whittier Boulevard, bringing in such businesses as Target and Panda Express. More developments include the Pico Rivera Village Walk, a $22 million, 12-acre shopping center located at the southwest corner of Whittier and Paramount boulevards. Tenants such as CVS Pharmacy and Krikorian Theatres are located at the corner of Paramount and Whittier Boulevards. A state- of-the-art LA Fitness, which is part of an 8.10-acre Pico Rivera Market Place Shopping Center with a Wing Stop, Chase Bank, Juice It Up and other businesses has opened at the corner of Washington and Rosemead Boulevards. As the community looks forward to the next 50 years, several recent and pending projects will help ensure Pico Rivera continues to be a great place to live, work and play. These include the recently completed projects such as the $43M Passons Boulevard railroad underpass project, the new $16M rebuild of the Pico Rivera Library on Mines Avenue and the completion of the Parks Renovation project, a $20M investment which provided much-needed improvement and expansion of city parks and recreational facilities throughout the community. WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA’S NEW $110 MILLION WATER TREATMENT PLANT The Water Replenishment District of Southern California recently completed a $110 million water recycling plant in Pico Rivera, built by J.F. Shea Construction, a Walnut-based developer. The last-stage water treatment plant treats wastewater from toilets, showers and sinks already treated by the Los Angeles County Sanitation District’s San Jose Creek Water Reclamation Plant near Whittier and piped along the river’s edge. Water at the Pico Rivera plant will be treated to the purification level of distilled water, said WRD officials. About 21,000 acre-feet of treated water that normally gets wasted to the ocean will instead be tapped, treated and put into the ground where it percolates into the water table and is later drawn by retail water companies’ wells. The giant step toward self-sustainability means managers of two of the largest ground water basins in the region will no longer need water pumped from Northern California or the Colorado River in order to serve 4 million customers from 43 cities in south Los Angeles County. The central and west coast underground basins will essentially be drought proof and no longer will have to worry about water allocations from outside the area.
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 19 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW
Pico Rivera Overview • Los Angeles County Overview • Demographics
-- LOS ANGELES COUNTY -- Los Angeles County is one of California’s original 27 counties, and is the most populous county in the United States, with more than 10 million residents as of 2017. Its population is larger than that of 41 individual U.S. states. It is the third-largest metropolitan economy in the world, with a GDP of over $700 billion. The county is home to more than one-quarter of California residents and is one of the most ethically diverse counties in the U.S. Most of the population of Los Angeles County is located in the south and southwest, with major population centers in the Los Angeles Basin, San Fernando Valley and San Gabriel Valley. Other population centers are found in the Santa Clarita Valley, Pomona Valley, Crescenta Valley and Antelope Valley. The county is divided west-to-east by the San Gabriel Mountains, which are part of the Transverse Ranges of southern California, and are contained mostly within the Angeles National Forest. Los Angeles County is commonly associated with the entertainment and digital media industry; all six major film studios—Paramount Pictures, 21st Century Fox, Sony, Warner Bros., Universal Pictures, and Walt Disney Studios—are located within the county. Numerous other major industries also define the economy of Los Angeles County, including international trade supported by the Port of Los Angeles and the Port of Long Beach, music recording and production, aerospace and defense, fashion, and professional services such as law, medicine, engineering and design services, financial services and more. High-tech sector employment within Los Angeles County is 368,500 workers, and manufacturing employment within Los Angeles County is 365,000 workers.
TOP 10 EMPLOYERS - LOS ANGELES COUNTY Company/Organization Name Jobs County of Los Angeles 107,500 Los Angeles Unified School District 90,800 City of Los Angeles 49,500 University of California Los Angeles 46,200 Federal Govt (non-Defense) 45,000 Kaiser Permanente 36,900 State of California (non-education) 29,900 University of Southern California 18,900 Northrop Grumman Corp. 16,600 Target Corp. 15,000 Source: Los Angeles Almanac (Based on 2016)
LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 20 SUMMARY PROFILE 2000-2010 Census, 2018 Estimates with 2023 Projections Calculated using Weighted Block Centroid from Block Groups
Lat/Lon: 33.9586/-118.1059 RS1 9209 Telegraph Rd 1 mi radius 3 mi radius 5 mi radius SPiUcoM RMiveAraEXECUTIVER, YCA P 9R06O60FILE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW 2000-20120180 Ce Estimatednsus, 2018 Population Estimates with 2023 Projections 27,860 214,205 675,201 Calculated using Weighted Block Centroid from BlockPico Groups Rivera Overview Los Angeles County Overview • Demographics • 2023 Projected Population 28,015 215,855 680,300 N O
I 2010 Census Population 27,583 209,483 664,099 T
-- DEMOGRAPHICSLat/LA on: 200033.95 Census8 --6/-118 .Population1059 26,676 205,999 658,186 L RS1 U
P Projected Annual Growth 2018 to 2023 0.1% 0.2% 0.2% 920O 9 Telegraph Rd 675,201 POPULATION - 5 MILES P Historical Annual Growth 2000 to 2018 1 mi rad0.2%ius 3 mi rad 0.2%ius 5 mi rad0.1%ius Pico Rivera, CA 90660 1 Mile 3 Miles 5 Miles EXCELLENT SURROUNDING DEMOGRAPHICS 2018 Median Age 36.4 35.2 34.3 Over 675,000 people live within a 5-mile radius 2018 Estimated Population 27,860 214,205 675,201 of the subject property. 2018 Estimated Households 8,040 61,364 190,028 2023 Projected Population 28,015 215,855 680,300 S N
D 2023 Projected Households 8,312 63,585 196,831 O L I 2010 Census Population 27,583 209,483 664,099 190,000 HOUSEHOLDS - 5 MILES O T 2010 Census Households 7,818 58,627 183,201 A H 2000 Census Population 26,676 205,999 658,186 L E DENSE RESIDENTIAL IN-FILL LOCATION U
S 2000 Census Households 7,805 58,439 182,074 P U Projected Annual Growth 2018 to 2023 0.1% 0.2% 0.2% There are over 190,000 households within a O O
P Projected Annual Growth 2018 to 2023 0.7% 0.7% 0.7%
H 5-mile radius of the subject property.
POPULATION Historical Annual Growth 2000 to 2018 0.2% 0.2% 0.1% Historical Annual Growth 2000 to 2018 0.2% 0.3% 0.2% 2018 Median Age 36.4 35.2 34.3 2018 Estimated White 58.7% 56.6% 53.4% AVG HH INCOME - 5 MILES 2018 Estimated Households 8,040 61,364 190,028 $79,322 2018 Estimated Black or African American 2.6% 2.8% 3.4% D S Y N T D 2023 Projected Households 8,312 63,585 196,831 I
L 2018 Estimated Asian or Pacific Islander 7.1% 6.3% 6.6% A C I O E 2010 Census Households 7,818 58,627 183,201 N H C 2018 Estimated American Indian or Native Alaskan 1.0% 1.1% 1.1% H E A T
S 2000 Census Households 7,805 58,439 182,074 R E 2018 Estimated Other Races 30.6% 33.2% 35.5% TOP EMPLOYERS - PICO RIVERA # of Employees U
O Projected Annual Growth 2018 to 2023 0.7% 0.7% 0.7% H 2018 Estimated Hispanic 77.1% 78.5% 78.3% El Rancho Unified School District 1,225 HOUSEHOLDS Historical Annual Growth 2000 to 2018 0.2% 0.3% 0.2%
E 2018 Estimated Average Household Income $93,988 $85,195 $79,322 Wal-Mart 500 M 2018 Estimated White 58.7% 56.6% 53.4% O 2018 Estimated Median Household Income $75,416 $67,672 $63,177 Southern California Gas Co 433 C
N 2018 Estimated Black or African American 2.6% 2.8% 3.4% D I Y 2018 Estimated Per Capita Income $27,184 $24,462 $22,385 N T BakeMark USA 310 I 2018 Estimated Asian or Pacific Islander 7.1% 6.3% 6.6% A C I E
N 2018 Estimated Elementary (Grade Level 0 to 8) 14.6% 14.8% 17.0% C 2018 Estimated American Indian or Native Alaskan 1.0% 1.1% 1.1% Cinta Facility Services 225 H A
T 2018 Estimated Some High School (Grade Level 9 to 11) 12.3% 12.4% 12.4% R
E 2018 Estimated Other Races 30.6% 33.2% 35.5% N Target 186 ) This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. representation herein is provided without information The be reliable. sources deemed to and government private from was produced using data report This + O
I 2018 Estimated High School Graduate 24.7% 27.1% 26.6% 5 T
RACE & ETHNICITYRACE 2018 Estimated Hispanic 77.1% 78.5% 78.3%
2 Feit Electric Co Inc. 180 A
E 2018 Estimated Some College 21.3% 20.5% 19.8% C G U E Bay Cities Container 155 A 2018 Estimated Average Household Income $93,988 $85,195 $79,322
D 2018 Estimated Associates Degree Only 9.2% 7.3% 7.2% ( M E O 2018 Estimated BachelorsMedian Household Degree Only Income $75,41613.0% $67,672 12.6% $63,17712.0% First Source LLC 146 C N I 2018 Estimated GraduatePer Capita Degree Income $27,1845.0% $24,462 5.3% $22,3855.0% INCOME Lowe’s 145
S 2018 Estimated TotalElementary Businesses (Grade Level 0 to 8) 14.6%673 14.8% 7,818 21,56517.0% Pacific Coast Feather <100 S
E 2018 Estimated TotalSome Employees High School (Grade Level 9 to 11) 12.3%5,684 93,743 12.4% 263,64912.4% N N )
I Bimbo Bakeries <100 This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. representation herein is provided without information The be reliable. sources deemed to and government private from was produced using data report This + O S I 2018 Estimated High School Graduate 24.7% 27.1% 26.6% 5 2018 Estimated Employee Population per Business 8.4 12.0 12.2 U T
2 Los Angeles County Sheriff’s Department <100 B A BUSINESS E 2018 Estimated Some College 21.3% 20.5% 19.8%
C 2018 Estimated Residential Population per Business 41.4 27.4 31.3 G U
A City of Pico Rivera <100
D 2018 Estimated Associates Degree Only 9.2% 7.3% 7.2% ( E 2018 Estimated Bachelors Degree Only 13.0% 12.6% 12.0% ©2018, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 04/2018, TIGER Geography Source: City of Pico Rivera Annual Financial Report, June 30, 2017 2018 Estimated Graduate Degree 5.0% 5.3% 5.0%
S 2018 Estimated Total Businesses 673 7,818 21,565 LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 21 S
E 2018 Estimated Total Employees 5,684 93,743 263,649 N I
S 2018 Estimated Employee Population per Business 8.4 12.0 12.2 U B 2018 Estimated Residential Population per Business 41.4 27.4 31.3
©2018, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 04/2018, TIGER Geography EXCLUSIVELY REPRESENTED BY
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