Circle K 4430 Main Street, Chula Vista, CA 91911 Offering Memorandum Pricing and Financial Analysis Property Description Demographics

Home , Irving Oil, Lawson (store)

Circle K 4430 Main Street, Chula Vista, CA 91911 Offering Memorandum Pricing and financial analysis property description Demographics

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Circle K located at 4430 Main Street, Chula Vista, CA 91911 (“Property”). It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

COLLIERS INTERNATIONAL OFFERING MEMORANDUM | Circle K Table of Contents Pricing & Financial Analysis Investment Overview...... 2 Investments Highlights...... 2 Executive Summary...... 3 Tenant Overview...... 4

Property Description Physical Description...... 6 Aerial Map...... 7 Tenant Map...... 8 Regional Map...... 9 Birds Eye...... 10

Demographics City Overview | Chula Vista, CA...... 12 Demographics Report...... 13

EXCLUSIVELY LISTED BY:

Aron Cline Calvin Short Senior Associate Associate direct +1.310.321.1811 direct +1.310.321.1877 MOBILE +1.818.632.0233 MOBILE +1.310.567.3525 email [email protected] email [email protected] License No. 01904371 License No. 01927216 COLLIERS INTERNATIONAL OFFERING MEMORANDUM | Circle K Pricing & Financial Analysis Pricing and financial analysis property description Demographics

Investments Highlights

LONG TERM NNN LEASED INVESTMENT DENSE INFILL CHULA VISTA LOCATION SITUATED NEAR THE 805 FREEWAY

• Approximately 30 years remaining on a NNN lease providing • Excellent location ideally located off the 805 Freeway (±139,552 cars an investor long-term security per day) on Main Street (±31,417cars per day)

• Circle K has approximately 7,000 locations worldwide and is recognized • Strong mix of surrounding national tenants in the immediate area including as one of the largest convenience store brands in the United States Home Depot, Walmart, Vons, AMC Theaters, Kohl’s, Pier One Imports, Staples, Babies R Us, Petsmart, Wells Fargo, 7-Eleven, • Dense Infill Chula Vista location with freeway visibility - strong traffic counts to name a few (±32,063 cars per day) • Located approximately 7 miles from downtown San Diego • Strong demographics - Average Household Income within a 1-mile radius is $73,235

• 2% annual rental increases starting in March 2016 - strong hedge against inflation STRONG INFILL LOCATION WITH AFFLUENT DEMOGRAPHICS • Since 2010 the population has grown approximately 25% within • Over 21,727 people within a 1-mile radius, with Average Household a 3-mile radius Income of $73,235 • Owner had an offer from In N Out to sign a ground lease with an annual • Over 178,424 people within a 3-mile radius, with Average Household rent of $200,000 Income of $64,743 • Gas station enables an investor to take advantage of accelerated • Over 350,021 people within a 5-mile radius, with Average Household depreciation Income of $66,073

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Executive Summary

Circle K Annualized Operating Data 4430 Main Street Chula Vista, CA 91911 Monthly Rent Annual Rent CAP Rate Current $15,000.00 $180,000.00 5.00% List Price...... $3,600,000 Gross Leasable Area �� 1,928 SF * 2% annual increases starting March of 2016 CAP Rate - Current �� 5.00% Year Built...... 1991 Lot Size ...... 0.73 Acres ( 31,799 SF)

Tenant Summary

Tenant Trade Name Circle K Type of Ownership Fee Simple Lease Guarantor Franchisee Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 30 Years Term Remaining on Lease 29.5 Years Increases 2% Annually starting in 2016 Options Three (3) ten (10) years

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Lease Abstract

Tenant: Circle K Address: 4430 N. Main Street, Chula Vista, CA Lease Commencement: February 3, 2014 Lease Expiration: March 1, 2044 Lease Term: 29.5 Years Lease Type: Absolute NNN Renewal Options: Three (3) ten (10) years Annual Rent: Current: $180,000.00. 2% annual increases starting in March of 2016

Percentage Rent: None Tenant shall at any time and from time and time upon not less than five (5) days prior notice by Lessor, execute, acknowledge and deliver to Lessor a Estoppel Certificates: statement in writing certifying that this Lease is unmodified and in full force and effect. Tenant shall bear, pay and discharge, on or before the last day on which payment may be made without penalty or interest, all secured property Real Estate Taxes: taxes imposed on the Premises and/or the improvements on the Premises. Tenant shall at all times during the Term, and at its own cost and expense, procure and continue in force workers’ compensation insurance and Insurance (Tenant): maintain in effect policies of insurance covering the Premises. Tenant shall make all arrangements for installation, upgrade or repair and pay for all gas, electricity, water, telephone, internet, trash disposal, and Utilities: any and all other utilities and services provided or that may be provided to the Premises during the Term of this Lease. Repairs and Tenant shall, at all times during the Term of this Lease, and at its sole cost and expense, construct, put, keep, replace and maintain in thorough repair Maintenance: and in good, safe and substantial order and condition, the Premises, and all equipment and appurtenances. Guarantor: Franchisee guarantee with IFAALK, Inc. Tenant shall use and occupy the Premises as a retail motor fuel facility for the sale of motor fuel and automotive-related items and convenience store, Permisible Use: including sale of beer and wine (if permitted by law), and propane (if permitted by law), and no other use, unless consented to in writing by Lessor. Right of First Refusal: None

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Tenant Overview

Property Name Circle K Since the 1980s, Circle K has been the largest company-owned convenience-store chain Gross Leasable Area 1,928 SF (i.e. of non-franchised stores) in the U.S. It was second in overall number of U.S. stores to 7-Eleven. Circle K stores in northeast Ohio vary depending upon what stores they used to Property Type Net Leased Convenience Store be: the majority are former Citgo/Holland Oil,whose gas is branded as Circle K; others are Parent Company Trade Name Alimentation Couche-Tard remnants of the Lawson’s/Dairy Mart chain, which sell gas from other companies. Some locations, especially older outlets in the company’s core markets of the American Southwest, Ownership Private do not sell gasoline.The chain operates internationally, branching into Mexico and continents Credit Rating BBB such as Asia. In Hong Kong the store is called OK in reference to the circle around the K. Taiwan used to operate under the Circle K brand but has since re-branded its stores to be Rating Agency Standard & Poor’s called OK MART Circle K was previously in the United Kingdom, Canada, Australia, and Revenue ±$1 Billion New Zealand, acting as the food-store portions of many Shell stations. The Circle K brand No. of Locations 10,000 + re-entered the Canadian market in 2008, in connection with Couche-Tard’s acquisition of Irving Oil’s convenience store network, as discussed below. The chain is primarily located Headquartered Tempe, Arizona in the Southern, Western, Southwestern, and Midwestern United States. In recent years, the Web Site www.circlek.com company has acquired the 90-store Spectrum chain serving Georgia and Alabama,the CFM chain in Missouri, 35 Sterling Dairy locations in Northwest Ohio, and 26 stores under Year Founded 1951 various brands from Chico Enterprises of Morgantown, West Virginia.[6] This all came after the 2005 rebranding of the various Couche-Tard stores (Mac’s, Bigfoot, Dairy Mart, and Handy Andy) under the more nationally-known Circle K brand. Circle K started to appear on Long Island in New York in 2013 with a store in Long Beach.

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Physical Description

THE OFFERING Property Name...... Circle K Property Address...... 4430 Main Street Chula Vista, CA 91911 Assessor’s Parcel Number...... 624-060-65-00 Zoning...... 6 SITE DESCRIPTION Number of Stories ��One Year Built...... 1991 Gross Leasable Area (GLA) ��1,928 SF Lot Size...... 0.73 Acres (31,799 SF) Type of Ownership...... Fee Simple Parking...... 25 Surface Spaces Parking Ratio...... 12.6 : 1,000 SF Landscaping...... Professional Topography...... Generally Level CONSTRUCTION Foundation...... Concrete Slab Framing...... Wood Exterior...... Painted Stucco Parking Surface...... Asphalt Roof...... Flat

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Aerial Map

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Tenant Map

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Regional Map

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Birds Eye

805 Freeway

Main St Main St

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City Overview | Chula Vista, CA

Chula Vista is the second largest city in the San Diego metropolitan area, the seventh largest city in Southern California, and the 76th-largest city in the United States.

Located in the city of one of America’s few year-round United States Olympic Training centers and popular tourist destinations include Cricket Wireless Amphitheater, the Chula Vista marina, and Living Coast Discovery Center, formally known as the Chula Vista Nature Center.

Just 7.5 miles from downtown San Diego and 7.5 miles from the Mexican border in the South Bay region of the metropolitan area, the city is at the center of one of the richest economic and culturally diverse zones in the United States. Chula Vista is named because of its scenic location between San Diego Bay and coastal mountain foothills.

Chula Vista maintains a business atmosphere that encourages growth and development. In the city, the small business sector amounts for the majority of Chula Vista’s business populous. This small business community is attributed to the city’s growth and serves as a stable base for its economic engine.

Tourism serves as an economic engine for Chula Vista. The city has numerous dining, shopping, and cinema experiences. The marina at Chula Vista is located in South Bay including multiple marinas and being home to the Chula Vista Yacht Club.

Top Employers: 1. Sweetwater Union High School District 2. Chula Vista Elementary School District 3. United Technologies Aerostructures 4. Sharp Chula Vista Medical Center

Source: http://en.wikipedia.org/wiki/Chula_Vista,_California#Economy

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Demographics Report

Population 1-Mile 3-Mile 5-Mile 2019 Projection 22,959 188,652 370,545 2014 Estimate 21,727 178,424 350,021 2010 Census 20,653 169,793 332,620 2000 Census 17,900 141,354 275,194 Growth 2014-2019 5.67% 5.73% 5.86% Growth 2010-2014 5.20% 5.08% 5.23% Growth 2000-2010 15.38% 20.12% 20.87%

Households 2019 Projection 6,083 52,803 109,537 2014 Estimate 5,762 50,133 103,947 2010 Census 5,498 48,248 100,027 2000 Census 4,731 40,772 85,140 Growth 2014-2019 5.58% 5.33% 5.38% Growth 2010-2014 4.81% 3.91% 3.92% Growth 2000-2010 16.21% 18.34% 17.49%

Income $0 - $15,000 6.42% 11.84% 12.38% $15,000 - $24,999 6.75% 10.79% 10.65% $25,000 - $34,999 9.70% 11.36% 11.01% $35,000 - $49,999 13.75% 14.77% 14.22% $50,000 - $74,999 23.34% 19.05% 18.71% $75,000 - $99,999 17.48% 12.82% 13.00% $100,000 - $124,999 9.98% 8.37% 8.43% $125,000 - $149,999 6.27% 4.86% 4.73% $150,000 - $199,999 4.62% 4.35% 4.63% $200,000 - $249,999 0.94% 0.95% 1.11% $250,000 - $499,999 0.69% 0.72% 0.96% $500,000+ 0.05% 0.12% 0.16% 2014 Est. Average Household Income $73,235 $64,743 $66,073 2014 Est. Median Household Income $64,336 $51,640 $52,318

Circle K | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 15 Circle K 4430 Main Street Chula Vista, CA 91911 OFFERING MEMORANDUM

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