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 E S V I E T N A M S T A U R A N 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 2 4 3 1 Downtown Los Angeles Citadel Outlet Mall Point of Interest The Forum LAX Distance fromDistance Subject 20 Miles 20 16 Miles 16 18 Miles 18 9 Miles 660000 6 5 8 7 Point of Interest Dodger Stadium Staples Center The Grove The USC Distance fromDistance Subject 20 Miles 20 25 Miles 25 18 Miles 18 17 Miles 17 19 AREA OVERVIEW MATTHEWS REAL ESTATE INVESTMENT SERVICES 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 Alamitos Bay. of Long Beach,withlong sandybeachesalongtheoceanandon provide respitefrombusyfreeways.Southof LA isthevast city and beaches.SandybeachesfromMalibudowntoNewport The Greater Los Angeles Area has 75 miles of sunny coastline BEACHES and StubHub Centeramongstothers. their favoriteteamsplay attheStaples Center, DodgerStadium, soccer teams.Avid sportsfans andspectatorscometowatch teams; includinghockey, baseball,football, basketball, and teams. GreaterLos Angeleshasninemajorleague professional Los Angelesishometoseveralprofessionalandcollegiatesports SPORTS and popularamusementparks. Magic Mountain, and Knott’s Berry Farm, are LA’s most attractive and UniversalStudios. Thesetwovenues,alongwithSixFlags especially forthosevisitingfromoutofstate, areDisneyland Two ofthemostpopulardestinationspotsinLos Angeles, THEME PARKS 21 AREA OVERVIEW MATTHEWS REAL ESTATE INVESTMENT SERVICES
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 11609 11605 11565 11559 11563 11567 11617 Totals UNIT O'Reilly Auto Launderland Katie's Nails Vietnamese Quick Cuts Restaurant TENANT Cricket Bakery Joyce Parts Coin May-09 Nov-06 Nov-08 Jun-09 Aug-16 Aug-12 START LEASE TBD Mar-22 Apr-20 Nov-19 Nov-18 LEASE May- May- TBD END 22 28 13,937 5,794 1,925 1,700 1,763 990 848 917 SF 100.0% 12.2% 12.6% 13.8% 41.6% 6.6% % OF 6.1% GLA 7.1% CONTRACT RENTAL RATE $325,638 $100,816 $54,026 $29,700 $27,602 $40,765 $42,312 $30,418 YEARLY MONTHLY $27,137 $2,300 $4,502 $2,535 $3,526 $2,475 $3,397 $8,401 $24.00 $30.00 $23.37 $35.87 $30.10 $31.78 $17.40 $21.18 YEAR RENT PERSF MONTH $2.50 $2.00 $2.99 $2.65 $1.95 $2.51 $1.45 $1.76 Annual CPIIncreases,min3%,max6% Option 2 Option 3 Option 1 Jun-20 May-19 Jun-22 May-18 Jun-19 Jun-21 Jun-18 Jun-23 Dec-18 Jun-18 DATE 3% AnnualIncreases 3% annualincreases RENT INCREASES min 3%, max 6% CPI Increases, $ PSF/YR $28.02 $39.20 $38.06 $35.88 $25.48 $40.38 $32.73 $31.00 $21.05 $31.93 $23.16 $19.14 MONTH $2.99 $2.58 $2.66 $3.36 $2.34 $3.27 $2.73 $1.59 $1.93 $2.12 $1.75 $3.17 RECOVERY $119,353 $49,221 ANNUAL $14,070 $13,567 $18,618 $8,698 $7,860 $7,318 RECOVERY PER AREA $8.56 $8.50 $9.27 $9.67 $8.79 $7.98 $7.98 $7.98 been executed, rent and expirationtobe verified. Options:2 5 yearLease has commencement 2 x5Year 3 x5Year 1 x5Year 1 x5Year x 5Years OPTIONS 25 FINANACIAL OVERVIEW MATTHEWS REAL ESTATE INVESTMENT SERVICES TENANT OVERVIEWS via partnershipswithdistributorsandresellers,ontheInternet. customers in49USstatesandtheDistrictofColumbia.Thecompanymakes salesthroughitschainofretaillocations, Cricket WirelessistheAT&T subsidiarythatprovidesprepaidwirelessvoiceanddataservicestosome4.5million services, includingoilandbatteryrecycling,testing, paintmixing,andtoolrental. stores acrosssome44USstatesandonline. ManyO’Reilly storesalsooffercustomersarangeof maintenance supplies,professionalserviceequipment, tools,andaccessoriesthroughsome4,570 The fast-growingcompanysellsautomotiveaftermarket parts(bothnewandremanufactured), Ownership Ownership 2016 Sales 2016 Sales $43.63M $7.97B Public Public 27 TENANT OVERVIEW MATTHEWS REAL ESTATE INVESTMENT SERVICES CONFIDENTIALITY AND DISCLAIMER STATEMENT
This Offering Memorandum contains select information pertaining to the business and affairs of Norwalk Square located at 11559 Rosecrans Ave, Norwalk, CA 90650 (“Property”). It has been prepared by Matthews Real Estate Investment Services. 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 Matthews Real Estate Investment Services. 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 detrimentalto the interest of the Seller.
Owner and Matthews Real Estate Investment Services 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 Matthews Real Estate Investment Services 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. ™
EXCLUSIVELY LISTED BY:
EL WARNER DEVON DYKSTRA EVP & National Director Associate Shopping Centers Shopping Centers Direct 949.873.0507 Direct 949.432.4517 Mobile 858.752.3078 Mobile 310.808.3596 [email protected] [email protected] Lic. No. 01890271 (CA) Lic. No. 01981609 (CA)