Victor Valley Town Center Nec Bear Valley Rd & Hesperia Rd | Victorville, Ca
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OFFERING MEMORANDUM VICTOR VALLEY TOWN CENTER NEC BEAR VALLEY RD & HESPERIA RD | VICTORVILLE, CA CAPITAL MARKETS | INVESTMENT PROPERTIES Shane Hariz Matthew C. Sullivan Alan Krueger Senior Investment Advisor, Partner Managing Director, Principal Senior Vice President 213-623-0800 ext. 2 213-623-0800 ext. 1 909-418-2062 [email protected] [email protected] [email protected] BRE License # 02025736 BRE License # 00848427 BRE License # 00880814 CONFIDENTIALITY AGREEMENT The information contained in the following Marketing Proposal is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Lee & Associates - Investment Services Group and should not TABLE OF CONTENTS be made available to any other person or entity without the written consent of Lee & Associates Investment Services Group. This Marketing Proposal has been prepared to 1. EXECUTIVE SUMMARY ..................... 3 provide summary, unverified information to the aforementioned owner of the property 2. PROPERTY DESCRIPTION .................. 5 receiving it. The information contained herein is not a substitute for a thorough due diligence 3. TENANT PROFILES ......................... 11 investigation. Lee & Associates Investment Services Group has not made any investigation, 4. FINANCIAL ANALYSIS ................... 1 5 and makes no warranty or representation, with respect to the income or expenses for the 5. MARKET OVERVIEW ....................... 20 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 Prooposal has been obtained from sources we believe to be reliable; however, Lee & Associates Investment Services Group has not verified, and will not verify, any of the information contained herein, nor has Lee & Associates Investment Services Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. The owner must take appropriate measures to verify all of the information set forth herein. EXECUTIVE 1 SUMMARY VICTOR VALLEY TOWN CENTER 3 PRICE INVESTMENT SUMMARY Address: 12133 - 12249 Hesperia Road, 17080-17222 Bear Valley Road, Victorville, CA NEC Bear Valley Road & Hesperia Road | Signalized Corner Building Size: ±135,140 Zoning: C-2T General Commercial $20,000,000 Land Area: ±20.05 Acres (87,000 SF Surplus Land*) Traffic: 68,000 CPD Vons (NAP), Ross, Waba, Wingstop, Occupancy: 83% Tenants: Verizon Vacancy: 17% 9 Parcels; 3091-271-07; 09; 12; 14; 17; APN: NOI 44; 46; 58; 59 Parking: 750 Spaces, 676 Required * 87,000 SF of excess land is not a part of the offering, but available for purchase (Parcel 44) $1,655,313 LOAN SUMMARY LOCATION HIGHLIGHTS • Signalized Corner, 68,000 CPD Loan Amount: $13,000,000 • Great Layout & Design, No elbows or Dead Space Interest Rate: 5.27% • Close to 15 Freeway TE IN- A PL $326,000 Principal R A Payment: Reduction; $700,732 Interest • Average Household Income $75,000 P C A E Due Date: 8/26 C Reserves: $162,168 (Annual) INVESTMENT HIGHLIGHTS Replacement Reserves: ($135,000 Cap) 8.28% • 8.28% on Actual Income, 17% Vacant Leasing Reserves: ($450,000 Cap) • $148 per SF 9 Parcels; 3091-271-07; 09; APN: • The excess 4.84 acres on north end of the center 12; 14; 17; 44; 46; 58; 59 is not a part of the offering, but can be bought separate • There is 18,500 buildable sq. ft. of land next to Ross and a 1,500 sq. ft. with a drive thru on parcel 2 included in this offering 4 PROPERTY 2 DESCRIPTION VICTOR VALLEY TOWN CENTER 5 PROPERTY OVERVIEW Victor Valley Town Center is a +/-135,140 SF dominant community center located in Victorville, CA. Opportunity to add value exists through both lease up of vacant space as well as development of excess land available for purchase. Anchored by Vons (NAP) & Ross, Victor Valley Town Center features an excellent mix of national tenants including Verizon, Subway, Great Clips, Wing Stop, and more. The property is also easily accessible through multiple ingress/egress points along Hesperia Road and Bear Valley Road, which are major thoroughfares in Victor Valley. Victor Valley Town Center offers ample surface parking for tenants and visitors. Furthermore, the property offers nearby access to the heavily travelled 15 Freeway. Year Completed: 1989 APN: 3091-271-07, 09, 12, 14, 17, 44, 46, 58, 59 Building Size: ±135,140 net rentable square feet Land Area: ±667,775 square feet (± 15.33 acres) Parking: 670 parking spaces (0.5 per 1,000 sf) Zoning: C2 Traffic Counts: 24,098 ADT at Hesperia Rd (c. Bear Valley) Demographics: 1 Mile 3 Miles 5 Miles Population (2020): 7,277 62,668 176,533 Avg. HH Income (2020): $59,508 $67,782 $67,812 Current Major Tenants: Ross, Petco, Subway, Waba Grill, Verizon PROPERTY PARCEL SF ACRES 7 42,319 0.97 HIGHLIGHTS 9 47,044 1.08 12 35,020 0.80 • ±135,140 SF Retail on ±20.05 Acres 14 30,000 0.69 • Excellent Visibility With Signage 17 42,253 0.97 • Close to 15 Freeway 44 210,830 4.84 46 30,240 0.69 • Ideal Busy Intersection Location 58 207,346 4.76 • Easy Access With Ample Parking 59 228,254 5.24 TOTAL 873,306 20.05 6 SITE PLAN Hesperia Road NAP NAP NAP Jasmine Street 1 1 2M- 2 2- 2 2 2L B A P K L J N PURCHASE 2 NAP 2 F LAND FOR E EXCESS 2 D1 D 2 D2 2 C 2BB 2 D3 2AA D4-5 4-5 3 A 33C 3 C D 3 NAP E 3 F- G 3J 3K 33L-3ML-M NAP 3L-N 33PP 4A 4B 44CC Bear Valley Road 55A-BA-B 55CC 55DD-E 5F 5G 5 G 1194 -1 66-2-2 66-3-3 Future Buildings Vacant Units NAP Apatite Street 7 WIMBLEDON APARTMENTS SHERWIN WILLIAMS DISTRIBUTION CENTER EXCESS LAND FOR PURCHASE HI DESERT PLAZA SHOPPING CENTER FUTURE BUILDINGS BEAR VALLEY BUSINESS PARK FUTURE BLDG. 8 LOCATION MAP 15 H e s p Palmdale Rd e r i a R E d Yucca Loma Rd v ado R d d R d R a ajo VICTOR VALLEY w av o i TOWN CENTER Victor N Apple K Valley Apple Victor Bear Food Valley Mall of Victor Hi-Desert College Valley Valley Valley 4 Less Towne Bear Valley Rd Valley Plaza Square BPlazaear VallPlazaey Rd Center Bear Valley Rd Center Bear Valley Rd Dunia 15 n Kiowa Plaza Jesss Ranch L Plaza il Marketplace d a Walmart d t R Supercenter n e o t v ia R d eek r ot A R er e C v e a v w 7th A esp I A eep C P o i H e D Mesa St ac K od o h w A v Tussing Ranch Rd on Lemon St e t ot C e v d 15 e d P R v R e a Main St M 7th A a ain S I A Midtown eek High Desert c t r w Gateway Square Hesperia h o i Shopping Square M A ain S K Center Shopping Walmart t v Hesperia eep C Supercenter Sulta Center M e n Marketplace ain S D a st Main t Street Hesperia e Plaza Town Rock Springs Rd v Center e v 9 C A I A HESPERIA RD WIMBLEDON APARTMENTS JASMINE ST EXCESS LAND FOR PURCHASE HI DESERT PLAZA SHOPPING CEN- TER VICTOR VALLEY HESPERIA RD TOWN FUTURE CENTER BUILDINGS FUTURE BEAR VALLEY RD BUILDINGS BEAR VALLEY RD 10 TENANT 3 PROFILES VICTOR VALLEY TOWN CENTER 11 TENANT PROFILES Rent-A-Center (commonly abbreviated as RAC) is a furniture and Headquarters: Plano, Texas electronics rent-to-own retail chain headquartered in Plano, Texas. The company’s business model allows customers to rent brand name furniture Website: http://www.rentacenter.com and electronics with the option of owning the product after paying off the Stock Symbol: NASDAQ: RCII value over a period of time. Rent-A-Center operates over 3,000 locations across the U.S. and Canada with a small portion of them being franchised. Employees: 14,500 As of 2018, the company’s annual revenue was $2.7 billion. Market Locations: 3,000+ locations in 31 States Ross Stores Inc operating under the brand name Ross Dress Company Type : Public for Less is the largest off-priced retailer in the U.S with 88,100 employees as of 2019. This American chain discount stores Stock Symbol: (NASDAQ: ROST) department is headquartered in Dublin California and has 1483 stores in 37 U.S. states, the District of Columbia, and Headquarters: Dublin, California Guam. Ross has no presence in New England, New York, Northern New Jersey, Alaska and Employees: 88,100 areas of the Midwest. Its key products are Clothing, footwear, bedding, furniture, jewelry, beauty products, toys, housewares. S&P Credit Rating: Website: Rossstores.com Ross Department Store was first opened in San Bruno, California, in 1950 by Morris Ross. In 1958 Ross sold his store to William Isackson to become a residential and commercial real estate Market Locations: 1483 developer. By the end of 1995 the chain reached an annual sale of $1.4 billion with 292 stores in Annual Revenue $14 bn (2018) 18 states. By 2012 Ross reached $9.7 billion for the fiscal year with 1,091 stores in 33 states with an additional 108 for Dd’s Discounts in 8 states.