100% Leased | Whittier, California
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100% LEASED | WHITTIER, CALIFORNIA Actual Site EXCLUSIVELY MARKETED BY: MATTHEW MOUSAVI | MANAGING PRINCIPAL PATRICK R. LUTHER, CCIM | MANAGING PRINCIPAL GARRETT COLBURN | EXECUTIVE VICE PRESIDENT 610 Newport Center Drive, Suite 400 | Newport Beach, CA 92660 610 Newport Center Drive, Suite 400 | Newport Beach, CA 92660 610 Newport Center Drive, Suite 400 | Newport Beach, CA 92660 DL: 949.698.1116 | M: 714.404.8849 DL: 949.698.1115 | M: 480.221.4221 DL: 949.698.1161 | M: 760.519.4732 [email protected] | CA License No. 01732226 [email protected] | CA License No. 01209944 [email protected] | CA License No. 01416734 This Offering Memorandum has been prepared by SRS Real Estate Partners (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment. RepresentativeActual Site Photo Actual Site 6 10 19 21 INVESTMENT SUMMARY PROPERTY OVERVIEW FINANCIALS AREA OVERVIEW PRICING SUMMARY AERIALS RENT ROLL WHITTIER, CA HIGHLIGHTS LOCATION MAP PRICING SUMMARY DEMOGRAPHICS SITE PLAN REIMBURSEMENTS SUMMARY TENANT PROFILE Actual Site Actual Site INVESTMENT SUMMARY OFFERING SRS Real Estate Partners is pleased to present the rare opportunity to acquire Friendly Hills Shopping Center, a 29,654 SF, 100% leased, grocery-anchored, shopping center PRICING $15,198,000 located in Whittier, California (Los Angeles County). The building is a historic structure NET OPERATING INCOME: $759,894 that has been completely renovated with the architectural elements preserved. The center features national trophy tenants such as Aldi and BevMo, who recently signed 15-year and CAP RATE: 5.00% 12-year leases, respectively. BevMo opened for business in September 2016 and Aldi just had their grand opening in November 2016. Hiccups, a trendy Asian fusion tea house with locations across Southern California, will soon sign a brand new 10-year lease (contact PROPERTY SPECIFICATIONS Agent for more details). All tenants are under NNN leases. Friendly Hills Shopping Center is located along California Highway 72 / Whittier Boulevard (37,000 vehicles per day) with excellent visibility and access. The site is across from RENTABLE AREA: 29,654 SF Whittwood Town Center, a 841,936 SF retail shopping center anchored by Target, Vons, LAND AREA: 2.78 Acres 24 Hour Fitness, PetSmart, and more. Nearby national/credit tenants include Ralphs, CVS, Sprouts, and more, which increases consumer draw to the subject trade area. The subject PROPERTY ADDRESS: 15525-15545 Whittier Boulevard property is located in an affluent neighborhood of Whittier where the average household Whittier, CA 90603 income is $148,800 and the median home price is $1,077,000. The 3-mile trade area is supported by a dense population of 174,000 with an average household income of YEAR BUILT / RENOVATED: 1956 / 2016 $94,600. Additionally, nearly 163,000 employees support the trade area. PARCEL NUMBER: 8224-030-012 OWNERSHIP: Fee Simple (Land and Building) 6 / FRIENDLY HILLS SHOPPING CENTER / WHITTIER, CALIFORNIA INVESTMENT SUMMARY / SRS REAL ESTATE PARTNERS Actual Site INVESTMENT HIGHLIGHTS 100% LEASED | LONG-TERM CORPORATE GUARANTEED LEASES | GROCERY-ANCHORED CENTER • Aldi just opened in November 2016 and has 15 years remaining in their current term • BevMo recently opened in September 2016 and has 12 years remaining in their current term • Hiccups will soon sign a brand new 10-year lease with 3% annual increases • Hiccups is one of the hottest and most trendy Asian fusion tea house concepts in Southern California with several locations in the planning and development stages • Rental increases throughout their terms, generating NOI growth REPURPOSED AND RENOVATED IN 2016 | HISTORICAL BUILDING • Historical building with Googie architecture, a futuristic design that originated in the 1940s in Southern California • Repurposed and completely renovated in 2016 with high quality materials to preserve historical value CALIFORNIA HIGHWAY 72 | 37,000 VPD | EXCELLENT VISIBILITY • Subject property is located along California Highway 72 / Whittier Boulevard with 37,000 vehicles passing by daily • Excellent visibility, access, and street frontage PROMINENT PYLON SIGNAGE | HISTORICAL SIGNIFICANCE • Prominent pylon sign further increases visibility for the subject property • The historical design of the previous pylon sign was preserved and adapted for the Friendly Hills Shopping Center $1+ MILLION HOMES • The property is located in the affluent neighborhood of Friendly Hills where the median price of a home is $1,077,000 • $148,800 average household in the immediate trade area 7 / FRIENDLY HILLS SHOPPING CENTER / WHITTIER, CALIFORNIA INVESTMENT HIGHLIGHTS / SRS REAL ESTATE PARTNERS Actual Site INVESTMENT HIGHLIGHTS (CONTINUED) COMMERCIAL CORRIDOR | NEW RETAIL & RESIDENTIAL DEVELOPMENT • Whittier Boulevard is Whittier’s commercial corridor • In early 2016, Whittier’s planning commission approved new retail developments that will feature Orchard Supply Hardware, Home Goods, and more • New residential projects planned for Whittier Boulevard include a 76-unit luxury apartment complex and a 55-unit town home development ACROSS FROM WHITTWOOD TOWN CENTER | 841,936 SF RETAIL CENTER • Whittwood Town Center is anchored by major tenants such as Target, 24 Hour Fitness, PetSmart, Vons, Kohl’s, and more • Excellent tenant synergy with strong cross over traffic • Increases consumer draw to the subject trade area REPAVED PARKING LOT | RECIPROCAL ACCESS WITH CHASE BANK • Reciprocal access with adjacent Chase bank provides convenience for consumers • Parking lot repaved as part of renovation DENSE AND AFFLUENT POPULATION IN 3-MILE TRADE AREA • Over 174,000 residents and 163,000 employees support the trade area • $94,600 average household income 8 / FRIENDLY HILLS SHOPPING CENTER / WHITTIER, CALIFORNIA INVESTMENT HIGHLIGHTS / SRS REAL ESTATE PARTNERS Actual Site 9 / FRIENDLY HILLS SHOPPING CENTER / WHITTIER, CALIFORNIA FLOWN AERIAL / SRS REAL ESTATE PARTNERS Actual Site PROPERTY OVERVIEW ACCESS PARCEL There are two (2) access points along Whittier Boulevard/ State Highway 72. Parcel Number: 8224-030-012 Acres: 2.78 Square Feet: 121,097 TRAFFIC COUNTS ZONING Whittier Boulevard/ State Highway 72: ..............................................37,000 SP: Whittier Specific Plan (Shopping Clusters) IMPROVEMENTS There is approximately 29,654 SF of existing building area. PARKING There are approximately 120 parking spaces on the owned parcel. The parking ratio is approximately 4.05 stalls per 1,000 SF of leasable area. YEAR BUILT / RENOVATED 1956 / 2016 PARCEL MAP 10 / FRIENDLY HILLS SHOPPING CENTER / WHITTIER, CALIFORNIA PROPERTY OVERVIEW / SRS REAL ESTATE PARTNERS Actual Site N N … 2016 ESTIMATED POPULATION LOS ANGELES 1 Mile ......................................................... 18,825 3 Mile ........................................................174,366 5 Mile ........................................................419,648 2016 AVERAGE HOUSEHOLD INCOME 1 Mile ......................................................$108,949 WHITTIER 3 Mile ........................................................$94,602 5 Mile ........................................................$92,400 2016 ESTIMATED TOTAL EMPLOYEES 1 Mile ........................................................... 7,004 3 Mile ......................................................... 34,663 5 Mile ........................................................162,701 LONG BEACH N N Actual Site RENT ROLL Pro Pro Rental Increases Expense Lease Lease Suite Tenant Name Size Rata Rent Rent Rent Rent Rata Increase Rent Rent Rent Rent Recovery Start End Lease Options # SF (SF) Monthly $/SF/Mo Annual $/SF/Yr ($) Date Inc. Monthly $/SF/Mo Annual $/SF/Yr Type Date Date 15525 BevMo 7,995 27% $21,986 $2.75 $263,835 $33.00 34% Feb-22 10% $24,185 $3.03 $290,219 $36.30 NNN Sep-16 Jan-29 3 (5-Year) Feb-26 10% $26,603 $3.33 $319,240 $39.93 Opt 1 (Yrs 1-2): $320,159 Opt 1 (Yrs 3-5): $352,151 Opt 2 (Yrs 1-2): $352,151 Opt 2 (Yrs 3-5): $387,430 Opt 3 (Yrs 1-2): $387,430 Opt 3 (Yrs 3-5): $426,157 15535 Aldi 19,201 65% $34,284 $1.79 $411,402 $21.43 53% Nov-21 10% $37,712 $1.96 $452,543 $23.57 NNN Nov-16 Nov-31 4 (5-Year) Nov-26 10% $41,491 $2.16 $497,893 $25.93