20SOLEDAD CANYON33 RD Santa7 Clarita, CA
100% Occupied Automotive Repair Property | Santa Clarita, CA CONFIDENTIALITY AND DISCLAIMER
The information contained herein 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 material 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 independent due diligence investigation. Marcus & Millichap,as a Real Estate Licensee is not qualified to discuss or advise on legal, accounting, or other matters outside of those permitted by state law. 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, PCBs 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 herein 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. All references to Marcus & Millichap include its officers, partners, agents, sub-agents, and employees. Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
SPECIAL COVID-19 NOTICE
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)
2 Presented By
JAMES DEBUISER Vice President Investments Cell 805.368.4313 Office 805.351.7144 [email protected] License CA 01965942
GARY COHEN First Vice President Investments Cell 818.804.1227 Office 805.351.7143 [email protected] License CA 00988655
NOLAN TOOLEY Associate Cell 805.705.6924 Office 805.351.7155 [email protected] License CA 02127359
Table of Contents Executive Summary...... 04 Property Overview...... 10 Area Overview...... 14 Market Overview...... 20 Financial Summary...... 26
20733 SOLEDAD CANYON 3 The Investment Offering Summary
Marcus & Millichap, as exclusive advisor, is pleased to present 20733 Soledad Canyon Road (“the Property”), ("Soledad $2,000,000 Canyon"), a two-tenant, auto repair retail property located Asking Price in Santa Clarita, California. 20733 Soledad Canyon is a rare opportunity to acquire a 100% occupied, well-maintained automotive-zoned building with excellent street front visibility. . 4,416 SF Total Building Area The property is located on Soledad Canyon Road, one of Santa Clarita's main thoroughfares, with traffic counts exceeding X per day. It is very well situated within the city's main automotive zoned areas, where a dense automotive focused tenant base creates a 14,045 SF Land Area synergistic and well established auto community. Built in 1985, 20733 Soledad Canyon Road consists of two buildings totaling 4,416 square feet on two parcels with a total land area of 14,045 square feet. Currently 100% leased, the properties ideal location 5.51% Cap Rate Year 1 and excess parking creates an opportunity for an investor to add value by increasing rents to market as the leases expire. 20733 Soledad Canyon Road is offered on a fee simple basis, and 100% at a significant discount to replacement cost. Leased
NNN NNN Leases
4 20733 SOLEDAD CANYON 5 20SOLEDAD7 CANYON33 RD
6 Ruether Avenue
Soledad Canyon Road
Golden Triangle Road
20SOLEDAD7 CANYON33 RD
20733 SOLEDAD CANYON 7 Property Summary
20733 Soledad Canyon Road Santa Clarita, CA Address
4,416 SF Net Rentable Area
100% Occupancy
9,583 SF (0.22 Acres) Site Area
24 Surface Parking Spaces
4.76:1,000 SF Parking Ratio
2 Tenants
C3 Zoning
1985 Year Built
8 20733 SOLEDAD CANYON 9 N.A.P.
FOUR 14' ROLL UP DOORS
FIVE STAR SMOG 1,125 SF
INDIVIDUALLY METERED UNITS
10 COUNTRY AUTOMOTIVE 3,600 SF 20' CLEAR HEIGHT
4,771 SF UNPAVED PARKING AREA
20733 SOLEDAD CANYON 11 12 Site Plan
20733 SOLEDAD CANYON 13 14 "Most Business Santa Clarita Valley Friendly City in Overview Los Angeles" Located just 30 miles from Downtown Los Angeles, Santa Clarita offers a vibrant city Los Angeles Economic Development Corporation full of cultural diversity, historical landmarks, and beautiful rolling hills. Santa Clarita is considered to be one of the safest and most desirable cities to live in the US. The city encompasses the unincorporated communities of Valencia, Canyon Country, Newhall and Saugus. Their master planned communities offer residents an unmatched quality of life. "Top 20 Retail Santa Clarita has become the ideal place to raise a family. The City of Santa Clarita has experienced tremendous growth, earning its designation as one of the fastest growing Markets" California Retail Survey 2012 cities in Los Angeles County. Offering a low cost alternative for expanding businesses, with features such as its business friendly tax structure, Santa Clarita has successfully attracted numerous aerospace, tech, biomedical and entertainment companies. The 15 area colleges and universities provide a well trained and educated workforce. "Best City for Industrial Demographics Development" 1-MILE 3-MILE 5-MILE Los Angeles Business Journal Population 11,700 121,10 0 250,600 "18th Best Places Households to Live in the 3,875 40,120 83,070 United States" Avg Household CNN Money Magazine Income 2006 $116,100 $122,900 $128,450
# of Business "#3 Safest City 770 3,000 8,150 in America" Parenting Magazine 20733 SOLEDAD CANYON 15
Local Map
16
Regional Map
34 Miles Los Angeles
52 Miles Ventura
41 Miles Lancaster
30 Miles Burbank
14 Miles San Fernando
34 Miles Palmdale
20733 SOLEDAD CANYON 17
Financial Summary
Rent Roll
Square % of Lease Monthly Annual Recovery Tenant Name Feet Property Expiration Rent PSF Rent Type Options One Five (5) Country Automotive 3,600 76.2% Feb-2023 $6,156 $1.71 $73,875 NNN Year Option
Five Star Smog 1,125 23.8% MTM $3,400 $3.02 $40,800 NNN None
Operating Statement Expenses ANNUALIZED OPERATING DATA Current EXPENSES Current
Scheduled Base Rent $115,822 Property Tax $24,456
CAM Reimbursements 35,170 Management Fee (3% of EGI) 4,426
Potential Gross Revenue 150,992 Repairs & Maintenance 1,654
Vacancy Allowance (3,475) Insurance 3,670
Effective Gross Revenue 147,517 Admin/Miscellaneous 2,734
Less: Expenses (37,141) Total Operating Expenses $ 37,141
Net Operating Income 110,376
Debt Service (72,246)
Cash Flow After Debt Service $38,130
Cash on Cash Return 5.45%
Total Return 8.90%
NOI Return (Cap Rate) 5.52%
Notes: (1) Current Base Rent accounts for Country Auto scheduled rent escalation in Y1 (2) Expenses assume property taxes reassessed at the asking price and millage rate of 1.2228%
18
20733 SOLEDAD CANYON 19 Automotive Retail Sale Comps
Rentable Area Price Per Year Built/ Property Address Sale Price Sale Date Lot Size Occupancy Square Feet Square Foot Renovated
1335 Truman Street $1,500,000 Jan-2021 3,646 $549 0.56 AC 100% 1958 San Fernando
19719 Ventura Blvd $1,660,000 Sep-2020 3,024 $ 411 0.14 AC 100% 1966 Woodland Hills
9561 De Soto Avenue $1,150,000 Aug-2020 3,080 $373 0.20 AC 100% 1965 Chatsworth
14222 Oxnard Street $1,400,000 Aug-2020 2,650 $528 0.15 AC 100% 1970 Van Nuys
3043 Thousand Oaks Blvd $4,450,000 Jul-2020 10,870 $409 1.65 AC 100% 1972 Thousand Oaks
1320 Thousand Oaks Blvd $1,300,000 Mar-2019 2,708 $480 0.44 AC 100% 1961 Thousand Oaks
6336 Woodman Avenue $3,500,000 Feb-2020 8,277 $423 0.47 AC 100% 1983 Van Nuys
17630 Sherman Way $2,650,000 Jan-2020 6,191 $428 0.56 AC 100% 1979 Van Nuys
20 3043 Thousand Oaks Blvd Thousand Oaks 17630 Sherman Way Van Nuys 9561 De Soto 1335 Truman Street Chatsworth San Fernando
1320 Thousand Oaks Blvd Thousand Oaks
6336 Woodman Avenue Van Nuys
19719 Ventura Blvd 14222 Oxnard Street Woodland Hills Van Nuys 20733 SOLEDAD CANYON 21 20SOLEDAD CANYON33 RD Santa 7Clarita, California Investment Contacts
JAMES DEBUISER First Vice President Investments Cell 805.368.4313 Office 805.351.7144 [email protected] License CA 01965942
GARY COHEN First Vice President Investments Cell 818.804.1227 Office 805.351.7143 [email protected] License CA 00988655
NOLAN TOOLEY Associate Cell 805.705.6924 Office 805.351.7155 [email protected] License CA 02127359
22 20733 SOLEDAD CANYON 23