Whitmore Plaza
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Whitmore Plaza Newly Renovated Grocery Anchored Center | 87% National/Regional Tenants | Value-Add Through Break-Up Strategy OFFERING MEMORANDUM CERES, CALIFORNIA Whitmore Plaza OFFERING MEMORANDUM CERES, CALIFORNIA EXCLUSIVELY LISTED BY: TABLE OF CONTENTS: Jeff Lefko Offering Summary 3 Executive Vice President Investment Highlights 4 [email protected] Rent Roll 7 949.585.7682 | BRE #01942025 Income & Expense 10 Site Plan 11 Bill Asher Parcel Map 12 Executive Vice President [email protected] Aerial Overview 14 949.585.7684 | BRE #01318078 Regional Map 17 Tenant Profiles 18 Greg Aguirre Area Overview 25 Capital Rivers Commercial Demographics 28 [email protected] 916.514.5225 | BRE #01337550 OFFERING SUMMARY WHITMORE PLAZA LOCATION Whitmore Plaza VIEW ON GOOGLE MAPS 2517-2617 Mitchell Road & 2908-2920 E. Whitmore Avenue Ceres, CA 95307 OFFERING SUMMARY Price: Unpriced Current Net Operating Income @ 95% Occupancy: $1,149,688 Net Rentable Area: 115,396 Year Built: 1979; R-2017 Lot Size (Acres): 11.39 FINANCING SUMMARY All Cash or Cash to New Financing (Contact Hanley Investmetn Group for Further Details) The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 3 INVESTMENT HIGHLIGHTS WHITMORE PLAZA y Extremely Established High-Performing Save Mart Anchored Shopping Center: ο High-Volume Save Mart Supermarkets (207 locations across California and Northern Nevada): Save Mart has occupied space at the subject property for over 40 years Save Mart signed a new 20-year lease in 2017 (and expanded) showing their historical success and long-term commitment to the location Save Mart is the dominant grocery chain in the Central Valley and excellent regional traffic generator to the subject property ο High-Volume, Low Rent Taco Bell and Bank of America: Taco Bell reports huge unit level sales and is operated by a large multi-unit franchisee Bank of America (NYSE: BAC; S&P: BBB+) has deposits of over $126 million and is one of the world's leading financial institutions y Opportunity to Create Immediate Value by Implementing a Break-up Sale Strategy: The subject property is on 7 individual parcels that allows for immediate arbitrage in selling off each parcel separately (contact broker for further details) y Daily-Needs Mix of Essential, Service-Based Tenants: 93% of the occupied square footage is leased to a service oriented, internet-resistant tenants y 87% Leased to National/Regional Tenants: Save Mart, Planet Fitness, Ace Cash Express, Bank of America, Boost Mobile, Freeway Insurance, Golden Bear Physical Therapy, H&R Block, L&L Hawaiian BBQ, Mountain Mike’s Pizza, Rent-A-Center, Taco Bell, and The UPS Store y Major 2017/2018 Renovation and Capital Improvements: The entire shopping center was upgraded with a new façade, parking lot, signage and lighting The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 4 INVESTMENT HIGHLIGHTS WHITMORE PLAZA y Below Market, Pre-Renovation Rents for a Portion of the Existing Tenancy: Over 35% of the existing tenancy are paying below market rents based on the property’s condition before the 2017 / 2018 renovation; long-term upside potential to increase these rents to market y Regional Central Valley Location: Whitmore Plaza serves the entire Ceres and Southwest Modesto trade area (88,000+ people) with over 1.45 million visitors per year, and a loyal customer base with approximately 80% of shopping center customers driving up to 20 miles to shop at the subject property y Excellent Accessibility, Identity, and Visibility: Hard corner signalized intersection location (46,000+ cars per day) with four points of ingress/egress; Whitmore Avenue is a major east/west and commercial thoroughfare in the region y Close Proximity to Highway 99, One of California’s Primary North/South Highways (92,000 Cars Per Day): Whitmore Avenue is a major exit off Highway 99, which allows people from neighboring communities to easily access the property y Dense San Joaquin Valley Demographics: 170,000 People within a 5-Mile Radius SUBJECT PROPERTY Whitmore Plaza FUTURE NATIONAL QSR 46,000 CPD - INTERSECTION - The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 5 INVESTMENT HIGHLIGHTS WHITMORE PLAZA y Site of Major Recent Developments: Ceres is one of the fastest growing suburbs in the Modesto area. Specifically, South Ceres is seeing huge retail growth and a significant increase in rental rates due to new development ο Ceres Gateway Center – Planned retail development at the southwest corner of Service Road and Mitchell Road (directly south of the planned Walmart Supercenter relocation) The project includes nine commercial buildings totaling approximately 54,000 square feet and a convenience store with a gas station and carwash Current tenants include Chipotle, Circle K, In-N-Out Burger, and Panda Express Phase II will include an 80-room hotel as well as buildings for three junior anchors The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 6 RENT ROLL WHITMORE PLAZA LEASE LEASE CURRENT CURRENT RENTAL LEASE RENEWAL TENANT SUITE SF START END RENT/SF RENT/MO. INCREASES TYPE OPTIONS 2517 MITCHELL ROAD 3% Annually L&L Hawaiian BBQ 2517-A 1,500 03/24/19 03/31/29 $1.80 $2,704 NNN None (4/21) 3% Annually One 3-Year @ 3% Ace Cash Express 2517-B 1,800 02/01/97 04/30/23 $1.51 $2,712 NNN (5/21) Annually (FMV Reset) Freeway Insurance 2517-C 2,723 11/19/14 02/28/21 $1.54 $4,189 None NNN None Rocio's Hair Salon & Barber 2517-D 1,070 10/01/09 MTM $1.24 $1,325 None NNN None 3% Annually Café Pressed 2517-E 1,200 01/31/19 01/30/24 $1.80 $2,163 NNN None (2/21) Available 2517-F 3,510 - - - - - - - 2617 MITCHELL ROAD Three 5-Year @ Bank of America 2617 4,576 06/01/92 05/31/22 $1.38 $6,292 None NNN 10% Increases 2908 & 2912 E. WHITMORE AVENUE Dentist (Pending) 2908-A 4,000 TBD TBD $1.70 $6,800 TBD NNN TBD 3% Annually Bob's Coffee 2908-B 2,000 03/20/17 10/31/22 $1.43 $2,864 NNN None (11/20) Nail Tech 2908-C 1,300 10/01/10 11/30/20 $1.49 $1,942 None NNN None 3% Annually Sub & Deli 2908-D 1,100 11/13/12 11/30/22 $1.33 $1,459 NNN None (12/20) The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 7 RENT ROLL WHITMORE PLAZA LEASE LEASE CURRENT CURRENT RENTAL LEASE RENEWAL TENANT SUITE SF START END RENT/SF RENT/MO. INCREASES TYPE OPTIONS One 6-Year: Yrs. 1-2 - $3,780 Golden Bear Physical Therapy 2908-E 2,100 09/14/18 09/30/24 $1.57 $3,297 10/21 - $3,507 NNN Yrs. 3-4 - $4,011 Yrs. 5-6 - $4,368 H&R Block 2908-F/G 2,700 11/11/10 04/30/21 $1.42 $3,827 None NNN None 3% Annually One 3-Year @ 3% UPS Store 2908-H 1,640 05/01/18 04/30/25 $1.45 $2,384 NNN (5/21) Annually (FMV Reset) Month 7 - $1,860 New Tenant 2908-I 1,200 TBD 5 Years $1.35 $1,620 NNN TBD Yr. 2 - 3% Annually Boost Mobile 3% Annually 2908-J 1,200 12/26/17 12/31/22 $1.54 $1,846 NNN One 3-Year (Wireless Solutions) (1/21) Available 2908-K 1,220 - - - - - - - 3% Annually Rent-A-Center 2912-A 5,100 07/11/99 09/30/22 $1.02 $5,200 NNN None (10/20) Two 5-Year: 3% Annually Mountain Mike's 2912-B/C 2,840 07/30/18 07/31/28 $1.49 $4,218 NNN Opt. 1 - 3% Annually (8/21) Opt. 2 - FMV (3% Min) Available 2912-D 1,440 - - - - - - - 3% Annually Discount Liquor 2912-E 2,640 08/22/08 11/30/24 $1.45 $3,828 NNN None (12/20) 2918 E. WHITMORE AVENUE Absolute Four 5-Year Taco Bell 2918 2,404 11/01/83 10/24/24 $2.32 $5,583 None NNN Ground @ FMV Lease The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 8 RENT ROLL WHITMORE PLAZA LEASE LEASE CURRENT CURRENT RENTAL LEASE RENEWAL TENANT SUITE SF START END RENT/SF RENT/MO. INCREASES TYPE OPTIONS 2916 E. WHITMORE AVENUE Two 5-Year @ Planet Fitness 2916 25,038 06/29/18 07/31/28 $0.67 $16,667 10% Every 5 Years NNN 10% Increases 2920 E. WHITMORE AVENUE Save Mart Supermarkets (1) 2920 41,095 06/28/17 06/30/37 $0.45 $18,424 Fixed Each Option NNN Two 5-Year; One 4-Year TOTAL SQUARE FOOTAGE: 115,396 $99,342 Total Monthly Rent TOTAL AVAILABLE: 6,170 5% Vacancy $1,192,104 Total Annual Rent TOTAL OCCUPIED: 109,226 95% Occupancy (1) Save Mart Supermarkets has operated at the shopping center since 1980 and relocated within the shopping center in 2017. Monthly base rent increases to $22,397 (22%) in Option1, $23,527 (5%) in Option 2, and $24,691 (5%) in Option 3. The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 9 INCOME & EXPENSE WHITMORE PLAZA ANNUALIZED OPERATING DATA Current Scheduled Gross Income (SGI): $1,187,251 Expense Reimbursement: $530,975 Effective Gross Revenue: $1,718,226 Total Operating Expenses: ($568,539) Net Operating Income (NOI): $1,149,688 OPERATING EXPENSES Amount $/SF Taxes (1.13%): $182,291 $1.58 Insurance: $32,496 $0.28 CAM: $318,135 $2.76 Management (3.0% of SGI): $35,618 $0.31 Total Expenses: $568,539 $4.93 Annually Per SF $0.41 Monthly Per SF The information contained herein has been obtained from sources we deem reliable.