Norwalk Square 11563-11617 ROSECRANS AVE NORWALK, CA 90650
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OFFERING MEMORANDUM Norwalk Square 11563-11617 ROSECRANS AVE NORWALK, CA 90650 ™ CONTENTS INVESTMENT PROPERTY AREA 5 OVERVIEW 9 OVERVIEW 15 OVERVIEW FINANCIAL TENANT 23 OVERVIEW 26 OVERVIEW ™ EL WARNER EVP & National Director Shopping Centers Direct 949.873.0507 Mobile 858.752.3078 [email protected] Lic. No. 01890271 (CA) DEVON DYKSTRA Shopping Centers Direct 949.432.4517 Mobile 310.808.3596 [email protected] Lic. No. 01981609 (CA) INVESTMENT OVERVIEW 5 OFFERING SUMMARY Matthews Real Estate Investment Services is pleased to present the fee simple sale of Norwalk Square, a ±13,937 SF CVS shadow-anchored strip center located on Rosecrans Avenue in Norwalk, California. The property is leased to a mix of national, regional and local tenants in a densely populated trade area with ±240,000 people in a 3-mile radius and ±660,000 people in a 5-mile radius. The high performing CVS shadow-anchor was recently renovated and renewed for an additional 25-year term showing commitment and dedication to the market. Located in a suburban city in Los Angeles County that sees ±43,000 vehicles per day, the property is perfectly situated in a strong retail corridor on the major arterial of Rosecrans Avenue. Norwalk Square is perfectly positioned with four major freeways surrounding the property, I-605, I-5, I105 and the 91 Freeway. INVESTMENT HIGHLIGHTS INVESTMENT SUMMARY • Dense in-fill location within LA County • Generational real estate in a strong retail market • Located minutes from highly trafficked I-105, I-5, I-605 Price $5,600,000 and 91 Freeway Propery Size (NRA) 13,937 • Strong mix of national, regional and local tenants Price Per SF $402 • 55% of the income is generated by national or credit Year Built 1962 tenants Current Occupancy 100% • High performing CVS shadow-anchor Investment Returns • CVS shadow-anchor was recently renovated and signed Cap Rate 5.59% a 25-year lease Operating Data Net Operating Income • Densely populated trade area with +/-240,000 people in $313,208 a 3-mile radius and +/-660,000 people in a 5-mile radius • Situated along Rosecrans Avenue, a main east/west thoroughfare, benefiting from over 43,000 VPD PROPERTY OVERVIEW 9 PROPERTY OVERVIEW PROPERTY NAME ADDRESS Norwalk Square 11563-11617 Rosecrans Ave LOCATION ZIP CODE Norwalk, CA 90650 ROSECRANS AVENUE CROSS STREET LAND AREA Fallon Avenue ± 43,926 SF (1.01 AC) YEAR BUILT TRAFFIC COUNTS 1962 Rosecrans Ave ±43,000 ADT AVENUE FALLON Pioneer Blvd ±20,000 ADT Interstate 605 ±291,000 ADT 10 MATTHEWS REAL ESTATE INVESTMENT SERVICES SITE PLAN TENANT SQUARE FEET O'Reilly Auto Parts 5,794 Launderland Coin 1,925 R V E I E S T T N A A U M R A E N S E T Vietnamese Restaurant 1,763 ROSECRANS AVENUE Katie's Nails 990 Joyce Bakery 848 Quick Cuts 917 MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS Cricket 1,700 Total 13,937 *Recently remodeled and signed brand new 25-Year lease PROPERTY OVERVIEW PROPERTY 11 SURROUNDING RETAIL N 12 MATTHEWS REAL ESTATE INVESTMENT SERVICES SURROUNDING RETAIL N MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS PROPERTY OVERVIEW PROPERTY 13 AREA OVERVIEW 15 NORWALK Incorporated in 1957, Norwalk is a city in southeastern Los Angeles County, in Southern California. Norwalk is approximately twenty minutes southeast of Los Angeles and fifteen minutes northwest of Anaheim. Norwalk ranks in the upper quartile for Population Density and Diversity Index when compared to the other cities, towns and Census Designated Places (CDPs) in California. Home to Metrolink and Metro Greenline Stations, Norwalk is served by four freeways and at the midpoints between the business districts of Los Angeles and Orange County. 5-MILE DEMOGRAPHICS DISTANCE FROM MAJOR FREEWAYS $83,663 663,275 3.49% ± 2 miles ± 2 miles ± 3 miles ± 4 miles Average Household Income 2017 Population Population Increase ECONOMY TOP EMPLOYERS SERVICES INVESTMENT REAL ESTATE MATTHEWS The city of Norwalk is currently focusing on six initiatives to ensure a bright economic future starting with developing an environment and provide services that help existing businesses grow. Additionally, connecting residents to education and training, providing pathways to better jobs, higher incomes and greater household stability; develop programs to stimulate reinvestment, keeping residential neighborhoods in high demand and retaining residents that have connected to better jobs and higher incomes; promote new development; develop a vision for the area surrounding the intersection of San AREA OVERVIEW Antonio Drive and Firestone Boulevard; and help stimulate demand for Norwalk’s goods, services, properties, and workforce. 17 LOS ANGELES, CALIFORNIA 13 MILLION POPULATION 45.5 MILLION VISITORS PER YEAR $31.6 BILLION 2015 TOURISM ECONOMIC IMPACT 18 MATTHEWS REAL ESTATE INVESTMENT SERVICES 660000 MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS Point of Interest Distance from Subject Point of Interest Distance from Subject 1 Downtown Los Angeles 16 Miles 5 The Grove 25 Miles Citadel Outlet Mall 9 Miles Dodger Stadium 18 Miles 2 6 AREA OVERVIEW 3 The Forum 18 Miles 7 Staples Center 17 Miles 4 LAX 20 Miles 8 USC 20 Miles 19 LOS ANGELES MSA The Greater Los Angeles Area is the second-largest urban region in the United States. The Los Angeles Metropolitan Statistical Area has a population of nearly 13 million residents. Los Angeles is a trend-setting global metropolis TOP EMPLOYERS with an extraordinary history and a rich cultural heritage. It’s known as the “Entertainment Capital of the World” and is home to renowned museums, along with 75 miles of sunny coastline. ECONOMY The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism. 20 MATTHEWS REAL ESTATE INVESTMENT SERVICES BEACHES The Greater Los Angeles Area has 75 miles of sunny coastline and beaches. Sandy beaches from Malibu down to Newport provide respite from busy freeways. South of LA is the vast city of Long Beach, with long sandy beaches along the ocean and on Alamitos Bay. THEME PARKS Two of the most popular destination spots in Los Angeles, especially for those visiting from out of state, are Disneyland and Universal Studios. These two venues, along with Six Flags Magic Mountain, and Knott’s Berry Farm, are LA’s most attractive and popular amusement parks. MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS SPORTS Los Angeles is home to several professional and collegiate sports teams. Greater Los Angeles has nine major league professional AREA OVERVIEW teams; including hockey, baseball, football, basketball, and soccer teams. Avid sports fans and spectators come to watch their favorite teams play at the Staples Center, Dodger Stadium, and StubHub Center amongst others. 21 FINANCIAL OVERVIEW 23 FINANCIAL OVERVIEW INCOME & EXPENSES TOTAL $/SF Income Rental Income $325,638 $23.37 General Vacancy ($11,241) ($0.81) Reimbursement Revenue $119,353 $8.56 Effective Gross Income $433,750 $31.12 Expenses Real Estate Taxes $67,200 $4.82 Insurance $3,484 $0.25 CAM $31,358 $2.25 Management Fees $13,500 $0.97 EGI (%) 3.1% Administrative / Professional Fees $5,000 $0.36 Total Operating Expense $120,542 $8.65 Net Operating Income $313,208 $22.47 24 MATTHEWS REAL ESTATE INVESTMENT SERVICES RENT ROLL LEASE LEASE % OF CONTRACT RENTAL RATE RENT PER SF RENT INCREASES ANNUAL RECOVERY UNIT TENANT SF OPTIONS START END GLA YEARLY MONTHLY YEAR MONTH DATE $ PSF/YR MONTH RECOVERY PER AREA Jun-18 $19.14 $1.59 Jun-23 $21.05 $1.75 O'Reilly Auto May- 11559 Aug-12 5,794 41.6% $100,816 $8,401 $17.40 $1.45 Option 1 $23.16 $1.93 $49,221 $8.50 3 x 5 Year Parts 28 Option 2 $25.48 $2.12 Option 3 $28.02 $2.34 Launderland 11563 Nov-08 Nov-18 1,925 13.8% $40,765 $3,397 $21.18 $1.76 Annual CPI Increases, min 3%, max 6% $18,618 $9.67 2 x 5 Year Coin 5 year Lease has been executed, rent commencement Vietnamese 11565 TBD TBD 1,763 12.6% $42,312 $3,526 $24.00 $2.00 3% annual increases $14,070 $7.98 and expiration to be Restaurant verified. Options: 2 x 5 Years 11567 Katie's Nails Aug-16 Mar-22 990 7.1% $29,700 $2,475 $30.00 $2.50 3% Annual Increases $8,698 $8.79 1 x 5 Year $35.88 Jun-18 SERVICES INVESTMENT REAL ESTATE MATTHEWS $38.06 $2.99 Jun-19 Joyce May- $39.20 $3.17 11605 Jun-09 848 6.1% $30,418 $2,535 $35.87 $2.99 Jun-20 $7,860 $9.27 1 x 5 Year Bakery 22 $40.38 $3.27 Jun-21 CPI Increases, $3.36 Jun-22 min 3%, max 6% May-18 $31.00 $2.58 11609 Quick Cuts May-09 Apr-20 917 6.6% $27,602 $2,300 $30.10 $2.51 $7,318 $7.98 May-19 $31.93 $2.66 11617 Cricket Nov-06 Nov-19 1,700 12.2% $54,026 $4,502 $31.78 $2.65 Dec-18 $32.73 $2.73 $13,567 $7.98 Totals 13,937 100.0% $325,638 $27,137 $23.37 $1.95 $119,353 $8.56 FINANACIAL OVERVIEW FINANACIAL 25 TENANT OVERVIEWS Cricket Wireless is the AT&T subsidiary that provides prepaid wireless voice and data services to some 4.5 million customers in 49 US states and the District of Columbia.