Black Diamond Tavern

OFFERING MEMORANDUM

BLACK DIAMOND TAVERN

42172 MOONRIDGE ROAD, BIG BEAR LAKE BLACK DIAMOND TAVERN

BIG BEAR LAKE, CALIFORNIA 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 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, 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. © 2018 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 sponsorship 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. Activity ID: XXXXXX

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com EXCLUSIVELY LISTED BY

Paul Bitonti First Vice President Investments Newport Beach, CA Direct: (949) 419-3246 Mobile: (714) 267-8582 License: CA 01325076

[email protected]

TABLE OF CONTENTS 02 01 PROPERTY DESCRIPTION // XX 03 EXECUTIVE SUMMARY // XX FINANCIAL ANALYSIS // XX

04 06 RENT COMPARABLES // XX MARKET OVERVIEW // XX 05 SALES COMPARABLES // XX 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. © 2018 Marcus & Millichap section 1 Executive Summary

offering summary

summary of terms

investment overview

investment highlights OFFERING SUMMARY

42172 MOONRIDGE ROAD, BIG BEAR LAKE, CA Asking Price $2,000,000

Gross Square Feet 8,280 SF

Number of Buildings 3

Number of Stories 2

Property Type Mixed-Use

Year Built/Renovated 1987/2018

Lot Size 1.30 AC

Zoning C-2 Commercial - General

8 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS

• Big Bear Lake, California

• Real Estate and High Performing Restaurant

• 2 Apartments and 16 Storage Units

• 1.30 Acre Parcel

• Well-located Real Estate - Foot of Big Bear Ski Resort

• Very Large Parking Field

• Owner User Investment

EXECUTIVE SUMMARY 9 10 EXECUTIVE SUMMARY BLACK DIAMOND TAVERN

42172 MOONRIDGE ROAD, BIG BEAR LAKE, CA Marcus and Millichap is pleased to present Black Diamond restaurant and tavern a mixed use property located at the foot of Big Bear Mountain Lake and resort. The offering consists of an operational restaurant and real estate which includes 2, 1 bedroom 1 bath apartments, 16 storage units and a 3,850 square foot operating restaurant building located on 1.30 acre parcel. Big Bear is home to Southern California’s largest recreation lake and ski resort that receives more than 7 million visitors every year. During winter season Big Bear Lake becomes the most popular skiing and snowboarding destination for Southern California. There are two ski resorts: Snow Summit and Bear Mountain. The primary summer attraction in Big Bear are fishing, hiking, mountain biking and horse riding. Big Bear Lake is experiencing significant changes that will grow its appeal as a visitor destination for the next decade. Bear Mountain and Snow Summit, along with Mammoth Mountain and June Mountain, were acquired in 2017 by The Aspen Skiing Co. - KSL Capital Partners, forming a new alliance named Alterra Mountain Co. who is expected to rival Vail Resorts as each controls about a dozen ski resort across the country. The Big Bear Alpine Zoo is moving to a new $8.5 Million home to open early Spring 2019. The Southern California Mountains Foundation is working on a master trail plan that will add 10 miles of trails every year for 10 years. The Moonridge Road/Rathburn Corridor plan is in progress to revitalize Moonridge Road and connect trail systems.

EXECUTIVE SUMMARY 11 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. © 2018 Marcus & Millichap section 2 Property Description

the property

local and regional maps

site plan

amenities 11/2/2018 Google Maps

14 PROPERTY DESCRIPTION

https://www.google.com/maps/@34.2339327,-117.2134974,11z 1/1 11/2/2018 Google Maps

PROPERTY DESCRIPTION 15

https://www.google.com/maps/@34.2339327,-117.2134974,11z 1/1 PLAT MAP Tax Map 42172 Moonridge Rd, Big Bear Lake, CA 92315

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 16 PROPERTYPRELIMINARY DESCRIPTION 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.

Tax Map 42172 Moonridge Rd, Big Bear Lake, CA 92315 11/2/2018 Page 1 (of 1)

PROPERTY DESCRIPTION

42172 Moonridge Road Address Big Bear Lake, CA

Lot Size 1.30 AC

Gross Leasable Area 8,280 SF

Year Built/Renovated 1987/2018

Parcel 2328-202-06

Zoning C-2 Commercial - General

CONSTRUCTION

Number of Stories INSERT SITE PLAN

Type of Ownership Fee Simple

Topography Flat

Foundation Concrete

Framing Wood

Exterior Stucco

Parking Surface Asphalt

Roof Composite

MECHANICAL

Utilities Gas, Electric and Water

PROPERTY DESCRIPTION 17 Big Bear Lake Water Department Big Bear Lake Library City of Big Bear Lake Public Works

Bear Valley Home of The Hangover Church Moonridge Fuel Goldsmith’s Big Bear Blvd Twin Bear Sports 30,000 Daily Traffic Party Rentals

The Grind & Grill Cafe Moonridge Rd

18 PROPERTY DESCRIPTION Big Bear Airport

Big Bear Lake

Snow Summit Moonridge Rd Ski Resort Bear Mountain Ski Resort

PROPERTY DESCRIPTION 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. © 2018 Marcus & Millichap section 3 Financial Analysis

property details

pricing details

rent roll summary

operating statement

cash flow 22 FINANCIAL ANALYSIS PROPERTY DETAILS // Black Bear Tavern

42172 Moonridge Rd, Address: Big Bear Lake, CA 92314

Price: $2,000,000

Buildings: 3

Price Per Foot Building: $241.55

GLA: 8,280 SF

Year Built/Renovated: 1987/2018

Lot Size: 1.30 AC

Price Per Foot Land: $35.32

Cap Rate (Current): 34.43%

Cap Rate (Pro Forma): 36.13%

FINANCIAL ANALYSIS 23 CURRENT PRO FORMA Apartment Gross Potential Rent $12,450 Gross Potential Income $12,450 Effective Gross Income $12,450

Restaurant Other Income $779,000 $779,000 Gross Potential Income $779,000 $779,000 ANALYSIS Effective Gross Income $779,000 $779,000

Storage

INCOME INCOME Gross Potential Rent $21,600 Gross Potential Income $21,600 Effective Gross Income $21,600

Combined Effective Gross Income $779,000 $813,050

Real Estate Taxes $46,881 $46,881 Insurance $5,000 $5,000 Utilities $32,000 $32,000 Repairs & Maintenance $2,500 $2,500 ANALYSIS Contract Services $4,100 $4,100

Total Expenses $90,481 $90,481 EXPENSE

Net Operating Income $688,519 $722,569

24 FINANCIAL ANALYSIS RENT ROLL // BLACK DIAMOND TAVERN

NUMBER UNIT TYPE SQUARE FOOTAGE PRO FORMA RENT / SF PRO FORMA RENT ANNUAL OF UNIT

2 1 Bed / 1 Bath 415 $1.25/SF $518.75 $6,225.00

Total 830 $1,037.50 $12,450.00 APARTMENTS

NUMBER UNIT SIZE SQUARE FOOTAGE PRO FORMA RENT / SF PRO FORMA RENT PER UNIT ANNUAL OF UNIT

4 10 x 10 400 $0.50 $200.00 $2,400.00

2 10 x 20 400 $0.50 $200.00 $2,400.00

3 15 x 20 900 $0.50 $450.00 $5,400.00

4 15 x 20 1,200 $0.50 $600.00 $7,200.00 STORAGE 1 20 x 20 400 $0.50 $200.00 $2,400.00

1 20 x 15 300 $0.50 $150.00 $1,800.00

Total 3,600 $1,800.00 $21,600.00

NUMBER UNIT TYPE SQUARE FOOTAGE OF UNIT

1 Restaurant & Bar 3,850

Total 830 RESTAURANT

TOTAL 8,280 $2,837.50 $34,050.00

FINANCIAL ANALYSIS 25 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. © 2018 Marcus & Millichap section 6 Market Overview

location overview

market research

demographics [INSERT CITY SEAL]

BIG BEAR LAKE California

POPULATION 84,424

28 MARKET OVERVIEW City Of HISTORY Big Bear Lake was inhabited by the indigenous Serrano Indians for over [BIG BEAR LAKE] 2,000 years before it was explored by Benjamin Wilson and his party. Once populated by only the natives and the grizzly bears, from which the area received its name, the population of the Big Bear Valley grew rapidly during the Southern California Gold Rush from 1861 to 1912. Grizzly Big Bear Lake is a small city in San Bernardino County, California, located in the San bears were not found in the region after 1908. Today, there are black bears Bernardino Mountains along the south shore of Big Bear Lake, and surrounded by the in the region since their introduction in 1933,[5] and they are sometimes San Bernardino National Forest. The city is located about 25 miles (40 km) northeast of sighted in residential areas. the city of San Bernardino, and immediately west of the unincorporated town of Big Bear City. The population was approximately 5,019 at the 2010 census, down from 5,438 at the Written records demonstrate that the site known as La Lomita was granted to Captain Conway and J.W. Hoit, who established the Rancho 2000 census. Being a popular year-round resort destination, however, the actual number La Lomita Land Company. Between 1906 and 1908, most of the area’s of people staying in or visiting the greater Big Bear Valley area regularly surges to over activities centered around the La Lomita area. In 1908, the Missouri 100,000 during many weekends of the year. Pacific Railroad established a railway station near the center of the new development, 4 miles north of the mission. That same year, the City of Big Bear Lake is Southern California’s largest recreation lake. It is about seven miles Mission, Texas was founded; Mrs. Ann Voltz, who lived in the Madero long and about one mile at its widest. The primary summer attraction in Big Bear was area, suggested that the new town be named Mission after the La Lomita fishing and it still is one of the most common activities there.[6] The most abundant Mission. Since 1908, the City of Mission has grown from a railroad stop to a thriving city with a population approaching 70,000. types of fish are trout, bass and catfish. Hiking, mountain biking and horse riding are also very popular. San Bernardino National Forest offers many trails in varying degrees It was in this area that citrus was first planted in the Rio Grande Valley. The of difficulty. During winter season Big Bear Lake becomes a skiing and snowboarding citrus industry is now a multimillion-dollar business, which is celebrated destination for Southern California. There are two ski resorts: Snow Summit and Bear annually with a gala Citrus Fiesta. The historic La Lomita Mission still Mountain. The town is also home to the Big Bear Lake International Film Festival, in stands and is visited regularly each year by tourists and residents, and operation since 1999. the multimillion-dollar citrus industry is celebrated annually with the gala Texas Citrus Fiesta, attracting participants from both sides of the Rio Grande. Mission is a city that is quickly growing but that has not Big Bear City Airport, a general aviation airport in the Big Bear City section of forgotten its vibrant and important history. unincorporated San Bernardino County, serves Big Bear Lake.

MARKET OVERVIEW 29 San Bernardino County California

San Bernardino County, officially the County of San Bernardino, is a county located in the southern portion of the U.S. state of California. San Bernardino County is included in the Riverside–San Bernardino–Ontario metropolitan statistical area (also known as the Inland Empire), as well as the Los Angeles– Long Beach combined statistical area. With an area of 20,105 square miles (52,070 km2), San Bernardino County is the largest county in the United States by area. San Bernardino County is located in southeastern California, with Inyo and Tulare Counties to the north, Kern and Los Angeles Counties to the west, and Orange and Riverside Counties to the south. San Bernardino County is bordered on the east by the states of Nevada and Arizona. The county’s diverse geography and extensive natural resources, as well as its proximity to major economic and population centers, provide unique opportunities for varied industry sectors to thrive, including commerce, education, tourism and recreation.

30 MARKET OVERVIEW MARKET OVERVIEW 31 DEMOGRAPHICS // T-Mobile

17,942 To t a l Population Within 5-mile Radius

$55,230 Average Household Income within 5-mile Radius 7,668 Total Households in 5-mile Radius

32 MARKET OVERVIEW POPULATION 1 Mile 3 Miles 5 Miles 2000 Population 2,415 10,854 16,387 2010 Population 2,364 10,659 16,983 2016 Population 2,604 11,336 17,942 2021 Population 2,665 11,563 18,509 HOUSEHOLDS BY INCOME 1 Mile 3 Miles 5 Miles HOUSEHOLDS 1 Mile 3 Miles 5 Miles $ 0 - $ 14,999 14.3% 17.0% 16.1% 2000 Households 976 4,573 6,788 $ 15,000 - $24,999 17.0% 15.0% 14.9% 2010 Households 953 4,562 7,163 $ 25,000 - $34,999 16.4% 14.9% 15.1% 2016 Households 1,062 4,920 7,668 $ 35,000 - $49,999 10.2% 12.9% 13.2% 2021 Households 1,093 5,068 7,976 $ 50,000 - $74,999 14.6% 17.9% 17.8% 2016 Average HH Size 2.36 2.35 2.35 $ 75,000 - $99,999 12.8% 9.4% 9.7% $100,000 - $124,999 8.1% 6.7% 6.4% HOUSING UNITS 1 Mile 3 Miles 5 Miles $125,000 - $149,999 1.5% 2.6% 2.3% 2000 Owner Occupied Housing Units 23.36% 22.55% 23.42% $150,000 - $200,000 3.0% 2.4% 3.0% 2000 Renter Occupied Housing Units 7.65% 10.22% 9.93% $200,000 to $249,999 1.0% 0.6% 0.7% 2000 Vacant 68.99% 67.23% 66.66% $250,000 + 1.1% 0.7% 0.7%

2014 Owner Occupied Housing Units 66.03% 57.95% 61.87% 2014 Renter Occupied Housing Units 33.97% 42.05% 38.13% Median HH Income $36,777 $37,293 $38,185 2014 Vacant 72.45% 68.75% 66.62% Per Capita Income $24,078 $23,385 $23,651 Average HH Income $58,716 $53,773 $55,230 2019 Owner Occupied Housing Units 65.83% 57.36% 61.50% 2019 Renter Occupied Housing Units 34.17% 42.64% 38.50% 2019 Vacant 72.93% 69.00% 66.60%

MARKET OVERVIEW 33 EXCLUSIVELY LISTED BY

Paul Bitonti First Vice President Investments Newport Beach, CA Direct: (949) 419-3246 Mobile: (714) 267-8582 License: CA 01325076

[email protected]