Price: $2,467,000
FOR SALE | 100% LEASED MULTI-TENANT RETAIL PAD | FRESNO, CA
Price: $2,467,000 Property Features: • 100% Leased Multi-Tenant Retail Pad Building with Drive-Thru CAP Rate: 5.75% • All Leases have Built-in Rent Increases | 6.12% CAP Rate Scheduled in 2020 • National and Regional Tenant’s with Long Term Occupancy • Across from the Entrance to Fresno Yosemite International Airport (over 1.63M Passengers Annually) • Pride of Ownership, Well Maintained Property, with Recent Property Updates
FOR MORE INFORMATION CONTACT: Bryan Cifranic DRE License #01809130 Direct Line: 559/ 650.1316 [email protected] Investment Summary Page 2
EXECUTIVE SUMMARY STRONG FUNDAMENTALS Commercial Retail Associates, Inc. is pleased to have been selected as the exclusive listing agent for the sale of this • The Property is 100% Leased to Nationally and Regionally Branded well maintained multi-tenant retail pad building located near the signalized hard corner of McKinley and Peach Tenant’s: Starbucks Coffee, Little Caesar’s Pizza, and Quizno’s Subs. • Triple-Net (NNN) Leases with Built-In Favorable Rental Increases. Avenues in Fresno, California. The approximate 4,452 square foot retail building is 100% leased to a diverse mix of • Brand New Hotel Development near completion neighboring the three (3) tenants with nationally and regionally recognized brands. The subject property is positioned along Peach Subject Property. Avenue at McKinley Avenue across the street from the main entrance to Fresno Yosemite International Airport • High Quality Construction that has been Well Managed and Maintained Since the Property’s Original Development in 2005. boosting more than 1,630,000 passengers annually. The subject property caters not only to the airport’s passengers • Recent Upgrades to the Property include 10-Year Roof Coating and and visitors but the neighboring hotel occupants and nearby residents and business within the immediate area. energy efficient LED parking lot lighting. This offering presents an investor with an opportunity to acquire a pride of ownership, 100% leased multi-tenant retail building with quality Tenant’s with long term occupancy history at the subject property. LOCATION HIGHLIGHTS • Positioned near the Signalized Hard Corner of McKinley and Peach INVESTMENT SUMMARY Avenue Boosting over 25,000 Average Cars Per Day at the Intersection. • Located in a Growing and Established area of southeast Fresno that Address: 1595 N. Peach Avenue serves not only the neighboring households and hotel guests but Fresno, California 93727 also the employees and customers of the many surrounding office Price: $2,467,000 and industrial buildings as well as the airport’s passengers and visitors entering and existing the International Airport located immediately CAP Rate: 5.75% across the street. • Neighboring Tenants in the immediate area include: a Brand New Net Operating Income: $141,811 Marriot Fairfield Inn & Suites, Brand New Hilton Hampton Inn & Suites, Newly Remodeled Best Western Plus Hotel, newer Family Dollar, newer Occupancy: 100% Grocery Outlet, New Circle K, Carl’s Jr., Shell Gas, numerous commercial office and industrial businesses, plus many more. Year Built: 2005 • Notable facilities located nearby include: Fresno Yosemite International Airport, Air National Guard Base, GAP Distribution Center, E&J Gallo Building Size: 4,452± Square Feet Winery Facilities, several network television stations including NBC, CBS, and FOX, and Airways Golf Course. Land Size: 33,105± Square Feet
FOR MORE INFORMATION CONTACT: Bryan Cifranic DRE License #01809130 Direct Line: 559/ 650.1316 [email protected] Rent Roll / Income and Expenses Page 3
TENANT SQ. FT. MONTHLY BASE RENT ANNUAL BASE RENT LEASE COMMENCEMENT LEASE EXPIRATION RENT ADJUSTMENT OPTIONS / OPTION RENT CAM, TAX, INSURANCE
Starbucks 1,552 $ 6,333.33 $ 76,000.00 03/11/2005 03/31/2025 10% Every 5-Years 2, 5-YEAR PRORATA SHARE² Suite #104 Next adjustment on 4/1/2020 with 10% Annual Rent to $6,966.67 Increases Little Caesar’s 1,348 $ 2 ,124.36¹ $ 25,492.32¹ 12/02/2015 08/31/2021 2.5% Annually 2, 5-YEAR PRORATA SHARE² Suite #102 Next adjustment on 9/1/2019 with 2.5% Annual Rent to $2,177.47 Increases Quizno’s 1,522 $ 3,359.87¹ $ 40,318.44¹ 04/09/2005 12/31/2020 2.0% Annually None PRORATA SHARE² Suite #101 Next adjustment on 11/1/2019 to $3,427.07
TOTAL 4,452 $11,817.56 $141,810.76
ANNUAL OPERATING EXPENSES (2017 Reconciled Budget) SCHEDULED ANNUAL INCOME & EXPENSES: Real Estate Taxes $ 12,872 Scheduled Base Rent $ 141,810.76 Insurance $ 1,184 Expense Reimbursements $ 47,184.00 C.A.M./Landscaping $ 6,521 Gross Operating Income $ 188,994.76 Utilities (Electricity/Water/Sewer/Garbage) $ 16,834 Less Operating Expenses < $ 47,184.00 > Misc. Repairs/Maintenance $ 9,773 Net Operating Income $ 141,810.76 Total Operating Expenses: $ 47,184
RENT ROLL NOTES: ¹ Little Caesar’s current monthly base rent is $2,072.55 and is contractually scheduled to increase to $2,124.36 on September 1, 2018. The monthly base rent shown is reflected in the rent roll and the net operating income analysis. Quizno’s current monthly base rent is $3,293.99 and is contractually scheduled to increase to $3,359.87 on November 1, 2019. The monthly base rent shown is reflected in the rent roll and the net operating income analysis. If applicable, the Seller will credit the Buyer the difference in the Tenant’s adjusted base rent prorated from the close of escrow date to the scheduled base rent increase date occurring on November 1, 2019.
² Tenant’s pay their pro rata share of property taxes, maintenance and insurance, subject to the terms and conditions of their respective leases.
FOR MORE INFORMATION CONTACT: Bryan Cifranic DRE License #01809130 Direct Line: 559/ 650.1316 [email protected] Tenant Profiles Page 4
STARBUCKS Starbucks Corporation is the largest coffeehouse company in the world, with 27,339 stores in 75 countries, including 13,244 in the United States. Standard & Poor’s rates the company “BBB+” investment grade with a stable outlook and Moody’s rates Starbucks “Baa1”. For the fiscal year ended October 1, 2017, SBUX reported total net revenues of $22.39 billion, net income of $2.88 billion and stockholder’s equity of $5.45 billion. For fiscal year 2017, the company’s reported total net revenues of $22.39 billion was a 5% increase over the prior year and net income of $2.88 billion was a 2% increase over the prior year. Starbucks is an American global coffee company and Italian-style coffeehouse chain based in Seattle, Washington. Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single serve products, juices and bottled water. The company’s stores also provide fresh food offerings; ready-to-drink beverages; and various food products, including pastries, and breakfast sandwiches and lunch items, as well as beverage-making equipment and accessories. In addition, it licenses the rights to produce and distribute Starbucks branded products to The North American Coffee Partnership with the Pepsi-Cola Company, as well as licenses its trademarks through licensed stores, grocery, and national foodservice accounts. The company offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange, and Verismo brand names. Many of the company’s products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.
This is a Corporate Signature Lease with Starbucks Corporation, a Washington Corporation NASDAQ: SBUX For more information visit: www.starbucks.com LITTLE CAESAR’S PIZZA Founded in 1959 and headquartered in Detroit, Michigan Little Caesars is the third-largest pizza chain in the United States, behind Pizza Hut and Domino’s and they sell over four million pizzas per week. Today, Little Caesars serves up Pizza in all 50 states and has over 5,500 locations, including 1,117 international units in 18 markets located throughout Europe, Asia and the Middle East. Between 2008–2015, Little Caesars carried the title of the fastest-growing pizza chain in the United States due in part that 90% of their locations are franchise operated. The business decision to expand through franchising paved the way for Little Caesars to become the fastest growing pizza chain and an internationally known brand. Little Caesars specializes in a variety of pizzas and several core menu items are part of the HOT-N-READY menu, designed to make popular items available for immediate carry-out, while others are made to order and customizable using an assortment of toppings. The HOT-N-READY pizza has been named the Best Pizza Value in America for 11 years in a row by Restaurants & Institutions. Additional entrée options on their menu include the Dish Pizza, a Detroit-style pizza, flavored chicken wings, salad, crazy bread, and several soft drink options. Starting in 2004, the company began offering the “Hot-N-Ready” pizza, a large pepperoni pizza that sells for $5. The concept was so successful it became a permanent fixture of the chain, and this shifted Little Caesar’s business model toward carryout customers.
This lease is signed and guaranteed by the franchise entity Little Caesars Pizza Unit 561 13 LLC, a California limited liability company. The franchisee/operator currently has 14 locations and has been established in the Little Caesars franchise system for many years. For more information visit: www.littlecaesars.com QUIZNO’S SUBS Founded in 1981, Quizno’s is a franchised fast-food restaurant that offers menu varieties in dinner, lunch, and breakfast with items such as sandwiches, soups, salads, wraps, sub-sliders, pizzas, breads, desserts, and beverages. In its early stages Quizno’s became one of the first and well known for specializing in offering the “toasted sub” a sandwich heated to melt the cheese and warm the meat and bread. Today the chain has approximately 800 locations throughout the United States as well as Internationally. Headquartered in Denver, Colorado the business was originally started by Jimmy Lambatos at his original location, where it still operates today, at the corner of 13th and Grant Streets in the Capitol Hill neighborhood of Denver. A few years later the company was acquired by Rick and Richard Schaden who saw a greater vision and began franchising the business and expanded the Quizno’s brand across the United States and abroad. In June of 2018, the Quizno’s brand and its assets were acquired by High Bluff Capital Partners a San Diego, California based private investment firm with more than 30 years of experience in restaurant, retail, and entertainment operations.
This lease is signed and personally guaranteed by franchisees Krishan L. Sachdeva and Joginder P. Sachdeva who have operated For more information visit: www.quiznos.com this location for over 12 years.
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Location Overview - Fresno, California Fresno is located in the central San Joaquin Valley 175 miles south Five major highways and freeways pass through Fresno County, of the San Francisco/Bay Area, 215 miles north of Los Angeles, and including Hwy 99, 41, 180, 168 and Interstate 5, as well as rail 110 miles east of the central coast. Fresno County has a diverse service from Burlington Northern Santa Fe and Union Pacific. population of approximately 1 million people. Covering an area Fresno is known as the gateway to the Sierras, and offers a wide of more than 6,000 square miles, Fresno County is the state’s sixth variety of outdoor recreational opportunities including Yosemite largest county. Fresno County’s economy is based in agriculture and Sequoia National Parks, numerous lakes and rivers, snow and produces more crops in terms of gross value than any other skiing, water sports and east access to the central coast popular area in the United States. Fresno is home to a wide variety of for surfing, fishing, whale watching and wine. Residents of manufacturing operations, many with ties to agriculture in the Fresno also enjoy a very low cost of living relative to California food processing, meat and dairy industries. Due to its central (Median home price $228,700), boast an uncongested freeway location within the state of California, Fresno has become a thriving system, have access to great shopping and entertainment, top distribution and logistics hub. Distributors can reach nearly all parts ranked schools, opportunities for higher education including of California, a market of over 30 million people, overnight by truck. California State University Fresno and the mild California climate.
FOR MORE INFORMATION CONTACT: Bryan Cifranic DRE License #01809130 Direct Line: 559/ 650.1316 [email protected] Demographics Page 12
N Peach Ave & E McKinley Ave 1 mi radius 3 mi radius 5 mi radius 10 mi radius Fresno, California
2018 Estimated Population 11,924 146,615 358,513 717,037 N
O 2023 Projected Population 12,481 152,518 372,775 745,000 I T
A 2010 Census Population 11,377 139,310 331,432 667,616 L
U 2000 Census Population 10,923 132,518 299,177 577,531 P
O Projected Annual Growth 2018 to 2023 0.9% 0.8% 0.8% 0.8% P Historical Annual Growth 2000 to 2018 0.5% 0.6% 1.1% 1.3%
2018 Estimated Households 3,412 44,881 113,243 237,173 S
D 2023 Projected Households
L 3,616 47,233 119,184 249,342
O 2010 Census Households
H 3,197 41,885 102,708 217,051 E
S 2000 Census Households 3,281 40,771 95,051 191,533 U
O Projected Annual Growth 2018 to 2023 1.2% 1.0% 1.0% 1.0% H Historical Annual Growth 2000 to 2018 0.2% 0.6% 1.1% 1.3%
2018 Est. Population Under 10 Years 2018 19.3% 17.4% 16.2% 15.6% Est. Population 10 to 19 Years 16.7% 15.9% 15.4% 14.8% 2018 Est. Population 20 to 29 Years 18.8% 17.2% 17.5% 15.7%
E 2018 Est. Population 30 to 44 Years 18.9% 19.0% 19.4% 19.5% G
A 2018 Est. Population 45 to 59 Years 14.0% 15.2% 15.6% 16.7% 2018 Est. Population 60 to 74 Years 8.7% 10.6% 11.0% 12.3% 2018 Est. Population 75 Years or Over 2018 3.8% 4.7% 4.9% 5.4% Est. Median Age 26.8 29.7 30.7 32.8
2018 Est. White 33.2% 42.8% 47.5% 52.1% 2018 Est. Black 9.9% 7.2% 6.9% 7.3% E
C 2018 Est. Asian or Pacific Islander 24.1% 16.3% 15.0% 13.2% A R 2018 Est. American Indian or Alaska Native 1.9% 1.9% 1.7% 1.6% 2018 Est. Other Races 30.9% 31.9% 28.8% 25.7%
2018 Est. HH Income $200,000 or More 1.6% 1.8% 2.7% 5.4% 2018 Est. HH Income $150,000 to $199,999 1.8% 2.3% 3.2% 5.1% 2018 Est. HH Income $100,000 to $149,999 6.0% 8.3% 10.0% 12.4% 2018 Est. HH Income $75,000 to $99,999 9.7% 9.8% 10.6% 11.4% 2018 Est. HH Income $50,000 to $74,999
E 20.4% 16.2% 16.7% 16.5% M 2018 Est. HH Income $35,000 to $49,999 15.9% 13.5% 13.9% 13.2% O
C 2018 Est. HH Income $25,000 to $34,999
N 11.7% 12.4% 11.7% 10.1% I 2018 Est. HH Income $15,000 to $24,999 15.7% 15.7% 13.8% 11.7% 2018 Est. HH Income Under $15,000 2018 17.1% 19.9% 17.4% 14.1% Est. Average Household Income 2018 Est. $51,797 $52,632 $59,293 $75,036 Median Household Income 2018 Est. Per $39,552 $40,711 $46,545 $58,211 Capita Income $14,838 $16,183 $18,971 $24,972 S S
E 2018 Est. Total Businesses 622 4,282 13,453 29,231 N I
S 2018 Est. Total Employees 7,310 39,164 148,882 298,577 U B
FOR MORE INFORMATION CONTACT: Bryan Cifranic DRE License #01809130 Direct Line: 559/ 650.1316 [email protected] Page 13
DISCLAIMER Commercial Retail Associates, Inc. hereby advises all prospective buyers of property as follows:
The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Commercial Retail Associates, Inc. and should not be made available to any other person or entity without the written consent of Commercial Retail Associates, Inc. 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. Commercial Retail Associates, Inc. and its Agents 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, Commercial Retail Associates, Inc. and its Agents has not verified, and will not verify, any of the information contained herein, nor has Commercial Retail Associates, Inc. and its Agents 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.
All property showing are by appointment only. Please consult your Commercial Retail Associates Agent for more details.
By accepting this Marketing Brochure you agree to release Commercial Retail Associates, Inc. and its Agents and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.
FOR MORE INFORMATION CONTACT: Bryan Cifranic DRE License #01809130 Direct Line: 559/ 650.1316 [email protected]