OFFERING MEMORANDUM
ONE OF THE LARGEST FAMILY DOLLAR STORES
RECENT STORE OPENING
INVESTMENT GRADE TENANT
5.13% CAP RATE WITH ADDITIONAL UPSIDE
8.8-YEARS REMAINING WITH FIVE 5YR OPTIONS
MAIN GROCERY STORE WITHIN 1.7 MILES
SIGNALIZED CORNER
9510 S VERMONT AVENUE 9510 S Vermont Ave • Los Angeles, CA 90044 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 it is solely included for the purpose of providing tenant lessee information about this listing to prospective Activity ID: ZAB0380065
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SPECIAL COVID-19 NOTICE
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OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com TABLE OF CONTENTS 01 02 INVESTMENT HIGHLIGHTS EXECUTIVE SUMMARY 03 04 FINANCIAL ANALYSIS TENANT OVERVIEW 05 06 SOUTH LOS ANGELES REGIONAL MAP 07 08
DEMOGRAPHICS PHOTOS 9510 S VERMONT AVE • LOS ANGELES, CA 90044 01 9510 S Vermont Ave., Los Angeles, CA 90044 INVESTMENT HIGHLIGHTS Brand New Construction for an Essential Business
One of the largest Family Dollar stores in Southern California
8.8-Year NNN Lease with Landlord Responsibilities limited to structural portions
The only Grocery Store under 1.7 miles
Investment Grade Tenant with Corporate Guaranteed Lease
Opportunity to obtain a stable stream of cash flow asset. Additional upside from a roof antenna lease with Crown Castle
Easy Access and Excellent Visibility at a Signalized Corner Location, Visible to 32,000+ Cars/Day at the Intersection of Vermont Ave and West Colden Ave. Close to the 110 and 105 Freeways
Growth momentum of the neighborhood facilitated by the official South Los Angeles Community Plan
Close to the rapidly developing Inglewood area, and only 2.5 miles away from the brand new SoFi Stadium ($2.6B)
4 02 9510 S Vermont Ave., Los Angeles, CA 90044 EXECUTIVE SUMMARY
Marcus & Millichap is pleased to present 9510 South Vermont, a newly constructed Family Dollar located in South Los Angeles, a few miles east of the booming city of Inglewood, California. With approximately 275 feet of frontage along Vermont Ave, the property is well positioned traversing corner to corner from West 95th St to West Colden Ave, a signalized corner, with points of ingress and egress on Vermont Ave and West Colden Ave.
Sitting in such close proximity to the highly attractive, rapidly developing Inglewood area, the building is well positioned to capture the upside growth from the brand new SoFi Stadium ($2.6B) that is under construction approximately 2.5 miles away. The SoFi Stadium will be the future home of the Los Angeles Rams and Chargers as well as the host of Super Bowl LVI and the 2028 Olympics. Furthermore, the growth momentum of the neighborhood where the property is located, is facilitated by the official South Los Angeles Community Plan that has outlined steps to foster the revitalization of properties along the commercial corridors throughout the Community Plan Area. Additionally, the Pointe on Vermont, a proposed 50-unit apartment project on 7600 South Vermont Ave, is further revitalizing the area.
9510 South Vermont is a rare opportunity, to obtain a 13,500 SF building that sits on .59 acres lot, with a credit tenant with an 8.8-year NNN lease that is a grocery store (in a neighborhood where there are no other groceries stores in 1.7 miles), offering stable cash flow and strong NOI. Furthermore, this Family Dollar store is over 50% larger than the typical store (8,320 SF), and is one of the largest in Southern California, making it a superior asset among its category. In addition to the attractive development area, the building is close to schools, churches, and restaurants. The property offers great accessibility, being both positioned close to the 110, and 105 Freeways as well as close proximity to LAX, the Los Angeles Coliseum, Banc of California Stadium, downtown LA, and major boulevards, all conveniently reachable via bus transportation. Additionally, the property offers great upside from a roof antenna lease with Crown Castle that will pay 50% of the monthly recurring rent from future agreements with those wireless tenants or from Existing Wireless Tenants that expand outside the current lease.
Dense demographics include over 55,000 people residing within a 1-mile radius and approximately 400,000 people residing within a 3-mile radius, generating, traffic volume of 32,000+ daily cars. This is a rare opportunity to obtain a stable stream of cash flow asset located in a spectacular developing area. 03PROPERTY NAME 9510 S Vermont Ave., Los Angeles, CA 90044 FINANCIAL ANALYSIS
LEASE SUMMARY Initial CAP Rate Price Price/SF Cash-on-Cash Tenant: Family Dollar 5.13% $3,800,000 $281.48 4.44% Guarantor: Corporate Guarantee * This Cap Rate is not inclusive of additional upside generated from roof antenna Credit Rating: Baa3 lease with Crown Castle Rent Commencement: 07/31/2020 Operating Information Initial Lease Term 8.8 Years
NOI as of 2020 $195,000 1st Year Option: $204,750.00 Rent/SF $14.44 2nd Year Option: $214,987.08 3rd Year Option: $225,736.08 Gross Leasable Area 13,500 SF Options: 4th Year Option: $237,023.04 5th Year Option: $248,874.00
Financing Lease Type: NNN New Acquisition Financing $2,090,000 Loan To Value 55.00% $14.44/SF Interest Rate 3.95% Base Rent: $1.20/SF/Month Amortization Period 30 Years $195,000 Annual Rent Loan Constant 5.69% Annual Debt Service Payment $119,014 Rent Increases: No Year 1 Debt Service Coverage 1.64 Year 1 Debt Yield 9.33% Year 1 Net Cash Flow After Debt Service $75,986
* Loan Quotes subject to change. Please contact your Marcus & Millichap Capital
Corporation representative for a more up to date quote. 9510 S VERMONT AVE • LOS ANGELES, CA 90044 9510 S Vermont Ave., Los Angeles, CA 90044
THE OFFERING ANNUALIZED OPERATING INFORMATION Property Family Dollar Property Address 9510 S Vermont Ave INCOME Los Angeles, CA 90044 Net Operating Income $195,000 Price $3,800,000 Capitalization Rate 5.13% Price/SF $281.48 RENT SCHEDULE ANNUAL MONTHLY PROPERTY DESCRIPTION YEAR RENT/SF CAP RATE Year Built / Renovated 1984/2020 RENT RENT Gross Leasable Area 13,500 SF 2020-2029 $195,000 $16,250 $14.44 5.13% Zoning LAC2 Type of Ownership Fee Simple 2029-2034 $204,750 $17,062.50 $15.17 5.39% Lot Size 0.59 Acres 2034-2039 $214,987.08 $17,915.59 $15.92 5.66%
LEASE SUMMARY 2039-2044 $225,736.08 $18,811.34 $16.72 5.94% Property Subtype Net Leased Discount 2044-2049 $237,023.04 $19,751.92 $17.56 6.24% Tenant Family Dollar Rent Increases At Renewal Options 2049-2054 $248,874 $20,739.50 $18.44 6.55% Guarantor Corporate Guarantee Lease Type NNN Lease Commencement 7/31/2020 Lease Expiration 3/31/2029 Lease Term 8.8 Years Term Remaining on Lease 8.8 Years Renewal Options 5 Options of 5 Years Each Maintain and repair all structural portions Landlord Responsibility of the building’s interior and exterior.
Property & liability insurance; Maintain and Tenant Responsibility repair all interior non-structural portions of the building. Real Estate Taxes.
Right of First Refusal No 9510 S VERMONT AVE • LOS ANGELES, CA 90044 04 9510 S Vermont Ave., Los Angeles, CA 90044 TENANT OVERVIEW
✓ 22.8 Billion in Revenue in 2018 ✓ 29.1% Growth Rate Earnings in 2018 ✓ S&P Credit Rating: “BBB-” ✓ Locations: 15,115 + ✓ Fortune Global 500 Ranked #134
PARENT COMPANY HEADQUARTERS DATE FOUNDED PARENT COMPANY NYSE Dollar Tree, Inc. Chesapeake, VA 1959 FDO
Family Dollar is an American variety store chain. In 2014, Dollar Tree acquired Family Dollar for $8.5 billion dollars. Dollar Tree has over 7,000 locations nationwide. Family Dollar has over 8,000 locations in all states except Alaska, Hawaii, Oregon and Washington, and is the second largest retailer of its type in the United States. Family Dollar was headquartered in Matthews, a suburb of Charlotte, North Carolina, until it was acquired by Dollar Tree and headquarters operations were moved to Chesapeake, Virginia. Family Dollar has over 60,000 employees in 46 states. Family Dollar has the following departments: Cleaning, Household, Food and Beverages, Personal Care, Beauty, Health and Wellness, Auto, Electronics, Office and School Supplies, Parties Supplies and Toys & Crafts.
While other businesses are struggling in this economy, Family Dollar continues to
hire people and has proved to be a recession resistant asset. 9510 S VERMONT AVE • LOS ANGELES, CA 90044 9510 S VERMONT AVE • LOS ANGELES, CA 90044 SOUTHLOS ANGELES The economic buildings a boulevards, Agency ▪ ▪ ▪ healthy Western/Slauson Council District 9 Corridors Exposition/University Park 05 Six “South Los Angeles is a diverse community is Angeles Losa community embraces sustainable diversethat its fosters “South history,neighborhoods, South South of ; local and changes Los and Los Los employment economy Angeles and promotes economic viability economic viability everyone and promotes for portions Angeles Angeles in land . ; of These production contains CRA/LA opportunities residential use to redevelopment facilitate redevelopment six ▪ ▪ ▪ of neighborhoods Pico Union2 Mid Vermont/Manchester redevelopment housing . - City Corridors commercial for areas project low . 9510 9510 S Vermont Ave Redevelopment project encompass - to development areas moderate . ” areas South Los Angeles Vision Statement Statement Vision Angeles Los South include many - established ; income goals provision : of include South families by of new the the Los ; removal former elimination public Angeles Community facilities of ‘commercial structurally of blight ; and Redevelopment and expansion substandard district creation and of of South LA: Transit Oriented Areas 9510 S Vermont Ave., Los Angeles, CA 90044
CLOSE PROXIMITY TO
110 Freeway Bret Harte Preparatory Middle School 95th Street Preparatory School YMCA Wellness & Aquatic Center Algin Sutton Recreation9510 Center S Vermont Ave 7-Eleven Local Favorite Restaurants Including: FabuCakes-N-More Casa Honduras Monster Burger Playa Dorada Pizza Hut Domino’s Pizza
KFC 9510 S VERMONT AVE • LOS ANGELES, CA 90044 06 9510 S Vermont Ave., Los Angeles, CA 90044 REGIONAL MAP
CLOSE PROXIMITY TO
110 and 105 Freeways Bret Harte Preparatory Middle School 95th Street Preparatory School YMCA Wellness & Aquatic Center Algin Sutton Recreation Center 7-Eleven Local Favorite Restaurants Including: FabuCakes-N-More Casa Honduras Monster Burger Playa Dorada Pizza Hut Domino’s Pizza
KFC 9510 S VERMONT AVE • LOS ANGELES, CA 90044 07 9510 S Vermont Ave., Los Angeles, CA 90044 DEMOGRAPHICS
POPULATION 1 Miles 3 Miles 5 Miles 2023 Projection 56,582 394,694 1,138,150 2018 Estimate 56,690 396,322 1,147,245
INCOME 1 Miles 3 Miles 5 Miles Average $46,295 $53,547 $56,962 Median $32,293 $38,264 $40,853 Per Capita $13,430 $14,912 $16,078
HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2023 Projection 16,730 111,661 323,814 2018 Estimate 16,308 109,579 319,765
TRAFFIC COUNT Traffic Volume S Vermont Ave W 98th St S 32,483 S Vermont Ave W 99th St S 31,296 S Vermont Ave W Century Blvd S 33,491
S Hoover St W 95th St S 15,823 9510 S VERMONT AVE • LOS ANGELES, CA 90044 08 9510 S Vermont Ave., Los Angeles, CA 90044 PHOTOS
13 9510 S Vermont Ave., Los Angeles, CA 90044 9510 S Vermont Ave., Los Angeles, CA 90044 9510 S Vermont Ave., Los Angeles, CA 90044 INGRID FARIAS-EISNER LAURA ALICE SCATURRO National Retail Group National Office & Industrial Properties Group
12100 West Olympic Boulevard 12100 West Olympic Boulevard Suite 350 Suite 350 Los Angeles, California 90064 Los Angeles, California 90064
Direct (310) 909-5449 | Cell (857) 998-3992 Direct (310) 909-5472 | Cell (310) 482-0422 [email protected] [email protected] License: CA 0207328 License: CA 01942167