ARCO/AMPM 4670 Churn Creek Road, Redding, CA
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™ REDDING | CA ARCO/AMPM 4670 Churn Creek Road | Redding, CA 96002 OFFERING MEMORANDUM Table of Contents TABLE OF CONTENTS 03 EXECUTIVE OVERVIEW 04 FINANCIAL OVERVIEW 05 TENANT OVERVIEW 07 AREA OVERVIEW LISTED BY ARON Cline Chad Kurz SENIOR VICE PRESIDENT & SENIOR DIRECTOR SVP & National Director | Lic # 01911198 (CA) DIRECT 949.432.4509 Calvin Short MOBILE 818.632.0233 SVP & Senior Director | Lic # 01927216 (CA) [email protected] Josh Bishop LIC # 01904371 (CA) VP & Director | Lic # 688810 (TX) | 2 ExecutiveFort Myers Overview | FL Investment Highlights » This brand new construction ARCO AMPM (BP S&P rating: A-) is conveniently located at the signalized intersection of Churn Creek Rd and South Bonnyview Rd off Interstate 5 Freeway in Redding, CA. » The combined traffic counts exceed 107,000 cars per day. » The lease is guaranteed by BP, a global producer of oil and gas with operation in 70 countries and an investment grade credit rating of “A-” by Standard & Poors. BP has a larger economic footprint in the U.S. than in any other country, and it has invested more than $100 billion in the country since 2005. BP does $204 billion in revenue and employs 14,000 people across the U.S. » The lease has 10% rental increases every 5 years including in the options to hedge against inflation and lead to long term appreciation in property value. » Freeway gas station location with very attractive traffic counts and out parcel to a new grocery anchored shopping center (Save Mart anchored). » 15 year absolute NNN ground lease – no landlord responsibilities. True “coupon clipper”. Location Highlights » The immediate trade area has a significant amount of planned new construction such as River Crossing Marketplace (Costco anchored shopping center), Churn Creek. » Marketplace (Save Mart - anchored shopping center), Redding Rancheria Casino (140,000 SF casino, with 250 room hotel, event center, and retail shops), amongst others. » Over 375,000 SF of proposed new retail in this immediate trade area will significantly change the landscape of South Redding while significantly increasing traffic. 3 | FINANCIALFort Myers Overview | FL Annualized Operating Data Monthly Rent Annual Rent Increases Cap Rate Year 1-5 $14,583.33 $175,000.00 4.75% Year 6-10 $16,041.67 $192,500.00 10% 5.23% Year 11-15 $17,645.83 $211,750.00 10% 5.75% Option 1 $19,410.42 $232,925.00 10% 6.32% Option 2 $21,351.50 $256,218.00 10% 6.95% Option 3 $23,486.67 $281,840.00 10% 7.65% Option 4 $25,835.33 $310,024.00 10% 8.42% Tenant Summary Investment Summary Tenant Trade Name ARCO/AMPM » LIST PRICE $3,684,000 Lease Guarantor Corporate Lease Type Absolute NNN Ground Lease » NOI (YEAR 1) $175,000 Roof and Structure Tenant Responsibility » CAP RATE (YEAR 1) 4.75% Original Lease Term 15 Years Rent Commencement Date 10/1/2018 » YEAR BUILT 2018 Lease Expiration Date 9/30/2033 Term Remaining on Lease ±14.5 Years » TOTAL LAND AREA ± 1.16 Acres Increase 10%, Every 5 Years Three, 5-year options Options One, 4-year option | 4 TENANTFort Overview Myers | FL » Company Name » Year Founded » Headquarters ARCO/AMPM 1978 Warrenville, IL » Ownership » Industry » Website The Offering Public Convenience Store www.ampm.com PROPERTY NAME ARCO/AMPM The AMPM brand is a chain with branches located all over the U.S and several countries worldwide. Owned by BP America, Inc. Atlantic Richfield Company is rated “A1” by Moody’s and “A-” by Standard & Poor’s. ARCO is owned by Andeavor Property Address 4670 Churn Creek Road (NYSE: “ANDV”), a Fortune 100 and a Fortune Global 500 company. Together, ARCO and ampm sites serve about 24 Redding, CA 96002 million customers per month. In the U.S. the AMPM stores are usually attached to an ARCO or BP-branded gas stations SITE DESCRIPTION with the first location opening in Southern California in 1978. ARCO prides itself in providing gas that exceeds EPA standards to help improve an engine’s efficiency, cleanliness, performance, reliability, and even minimizes emissions at an Number of Stories One affordable price. Year Built 2018 GLA ±3,000 SF » S&P: “ A-” » Company Name » Locations » Revenue Lot Size ±1.16AC (50,530 SF) BP 18,300 $204B » NYSE: “BP” Type of Ownership Ground Lease Headquartered in London, BP is one of the world’s largest integrated oil and gas companies. Its operations spread across 80 countries around the world. The company provides its services to wholesale and retail customers. For over 150 years, BP has supplied the energy fueling America’s growth. Today, the U.S. operations provide the investment, jobs and products underpinning both American prosperity and its transition to a lower-carbon future. In 2017, BP supported more than 125,000 U.S. jobs and contributed $85 billion to the U.S. economy. BP invests more in the United States than we do in any other country making BP one of America’s top producers and refiners of oil and gas. 5 | Site Plan O AD E W R NNYVI H B O SOUT INT ERST A T E 5 C H U R N C R E E K R O A FUTU RE D FAS T FOOD CHURN CREEK MARKETPLA CE D EVELO PMENT North | 6 REDDINGLocation | CA Downtown Redding ±4 Miles CHURN CREEK MARKETPLACE DEVELOPMENT (Save Mart Grocery Anchored Shopping Center) ±60,000 VPD North 7 | REDDINGSiteLOCATION Plan | CA RIVERVIEW COUNTRY CLUB RIVER CROSS MARKETPLACE DEVELOPMENT (Costco Anchored Retail Center) SACRAMENTO RIVER S Bonnyview Rd ±28,792 VPD CHURN CREEK MARKETPLACE DEVELOPMENT North (Save Mart Grocery Anchored Shopping Center) | 8 REDDINGLocation | CA REDDING RANCHERIA CASINO • 140,000 SF Casino • 250-Room Hotel • Event Center • Retail Shops CHURN CREEK MARKETPLACE DEVELOPMENT (Save Mart Grocery Anchored Shopping Center) North 9 | REDDING REDDINGSiteLOCATION Plan | CA RANCHERIA CASINO (140,000 SF Casino, 250 room hotel, REDDING | CA event center, and retail shops) INTERSTATE 5 (60,000 ADT) (330 EMPLOYEES) SACRAMENTO RIVER S BONNYVIEW ROAD (28,792 ADT) CHURN CREEK ROAD (18,328 ADT) RIVER CROSSING MARKETPLACE CHURN CREEK ROAD (18,328 ADT) (COSTCO-ANCHORED RETAIL CENTER) UNDER CONSTRUCTION North | 10 REDDING REDDINGLocation | CA DOWNTOWN ANDERSON RANCHERIA CASINO (6.7 MILES) (140,000 SF Casino, 250 room hotel, REDDING event center, and retail shops) MUNICIPAL AIRPORT INDUSTRIAL INTERSTATE 5 (60,000 ADT) AREA MT. SHASTA MALL (267 beds and 1,566 employees) (100,000+ Annual Visitors) (to be relocated to River Crossing Marketplace) DOWNTOWN REDDING (4MILES) REDDING (8,598 students and 369 employees) (1,012 students) RANCHERIA CASINO (330 EMPLOYEES) (140,000 SF Casino, 250 room hotel, S BONNY SACRAMENTO event center, and retail shops) VIE W R RIVER OAD (28, 792 AD T) ENTERPRISE HIGH SCHOOL (1,220 STUDENTS) RIVERVIEW CHURN CREEK ROAD (18,328 ADT) UNDER CONSTRUCTION INTERSTATE 5 (60,000 ADT) COUNTRY CLUB RIVER CROSSING MARKETPLACE (COSTCO-ANCHORED RETAIL CENTER) CHURN CREEK MARKETPLACE CHURN CREEK (330 EMPLOYEES) (330 EMPLOYEES) (SAVE MART MARKETPLACE ANCHORED RETAIL) (SAVE MART ANCHORED RETAIL) SACRAMENTO INTERSTATE 5 (60,000 ADT) (60,000 5 INTERSTATE SOU RIVER CHURN CREEK ROAD (18,328ADT) SACRAMENTO TH BON RIVER NY VI CHURN CREEK ROAD (18,328 ADT) EW RO AD (2 8,7 92 RIVER CROSSING MARKETPLACE AD REDDING T) (COSTCO-ANCHORED RETAIL CENTER) RIVER CROSSING MARKETPLACE RANCHERIA CASINO (COSTCO-ANCHORED RETAIL CENTER) (140,000 SF Casino, 250 room hotel, North event center, and retail shops) UNDER CONSTRUCTION 11 | REDDINGSiteLOCATION Plan | CA DOWNTOWN ANDERSON (6.7 MILES) REDDING MUNICIPAL AIRPORT INDUSTRIAL AREA REDDING RANCHERIA CASINO (140,000 SF Casino, 250 room hotel, event center, and retail shops) UNDER CONSTRUCTION INTERSTATE 5 (60,000 ADT) CHURN CREEK MARKETPLACE (330 EMPLOYEES) (SAVE MART ANCHORED RETAIL) SACRAMENTO RIVER RIVER CROSSING MARKETPLACE (COSTCO-ANCHORED RETAIL CENTER) North | 12 Area OverviewREDDING | CA Demographics HOUSEHOLDS 1 - MILE 3 - MILE 5 - MILE 2010 Census 2,123 16,373 32,988 POPULATION 1 - MILE 3 - MILE 5 - MILE 2019 Estimate 2,200 16,733 33,947 2010 Census 5,660 43,384 83,443 2024 Projection 2,256 17,084 34,778 2019 Estimate 5,851 44,346 85,644 Growth 2010-2018 3.63% 2.20% 2.91% 2024 Projection 6,001 45,307 87,688 Growth 2018-2023 2.54% 2.10% 2.45% Growth 2010-2018 3.38% 2.22% 2.64% INCOME 1 - MILE 3 - MILE 5 - MILE Growth 2018-2023 2.56% 2.17% 2.39% 2019 Est. Average $71,261 $69,518 $71,711 Household Income 13 | REDDING | CA REDDING, CA SUNDIAL BRIDGE Sitting along the Sacramento River, Redding is the county seat of Shasta County. In addition to being the largest city in the Shasta Cascade region, Redding is the sixth-largest city in the Sacramento Valley The City of Redding is the center of trade and commerce for the upstate region of northern California. Redding is the largest city north of Sacramento, with a population of 90,000, and is strategically located on Interstate 5, equidistant between Seattle and Los Angeles. Redding has grown as a thriving business community; and, as such, the Redding City Council places significant value on both the companies that are here and the ones that will relocate or expand from other areas. The Sundial Bridge is one of the largest working sundials in the world--and serves as a pedestrian bridge over the Sacramento River in the heart of Redding. The bridge is world-famous and is a California icon. DISTANCE TO MAJOR CITIES 1 2 3 1 2 3 SACRAMENTO, CA SAN FRANCISCO, CA SAN JOSE, CA ±164 Miles ±230 Miles ±264 Miles | 14 REDDING | CA ECONOMY The economy in Redding is largely a service economy, with employment spread across a wide range of service professions that include healthcare, retail, and tourism.