METROCENTER a Rarely Available, Dual Grocery Anchored Center in an Infill Orange County, Southern California Location
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Fullerton METROCENTER A Rarely Available, Dual Grocery Anchored Center in an Infill Orange County, Southern California Location Jones Lang LaSalle Americas, Inc. (“JLL”), real estate license #01223413 Executive Summary JLL has been exclusively retained by Ownership to offer the opportunity to acquire Fullerton Metrocenter (the “Property”), a 433,258 square-foot, dual grocery anchored retail center located in Fullerton, CA. Anchored by Sprouts Farmers Market (which recently renewed for 10 years) and Target (on a fee-simple ground lease), this community shopping center is positioned adjacent to the 91 freeway (576,000 VPD) in the heart of Fullerton’s primary retail corridor. The Property, on over 30.3 acres of land, is currently 94% leased, providing investors with the ability to meaningfully increase NOI over the hold period through lease-up of existing GLA, through mark-to- market rent opportunities, and through renovating outparcel buildings to achieve higher rents. Fullerton Metrocenter offers investors the rare opportunity to acquire a Sprouts/Target anchored retail center, with stable cash flow from other national tenants and value creation potential in an infill Orange County Opportunity Zone location. PROPERTY SUMMARY Price: Best Offer 1301-1577 Harbor Blvd, Address: 104-250 W Orangethorpe Ave Fullerton, CA 92832 Square Feet: 433,258 Occupancy: 94% 1965 (Target Store) Rest of Year Built: Center in 1988 Redeveloped: 2004 Site Size: 30.3 acres 1,612 Spaces Parking: (3.72 per 1,000 SF) Opportunity Zone: Yes 10-Yr NOI CAGR: 3.8% 2 | . Investment Highlights PREMIER ANCHOR TENANTS ON LONG-TERM LEASES INFILL ORANGE COUNTY REAL ESTATE – TARGET AND HIGH VOLUME SPROUTS Fullerton Metrocenter is located on a prime 30.3 acre infill site at the hard Over 77% of the leased GLA is occupied by national tenants that include corner of a busy intersection in Orange County. Sprouts Farmers Market (which recently extended its lease for 10 years) and Target (on a fee-simple ground lease with control through 2036), providing investors secure cash flows. OF TENANCY LEASED TO IN OCCUPANCY 78% NATIONAL TENANTS 58% SINCE 2005 | 3 Investment Highlights Anaheim Regional Medical Center 223 Beds (1,200 Employees) PROVEN RETAIL LOCATION WITH EXCEPTIONAL TENANT LONGEVITY Over 58% of the tenants at Fullerton Metrocenter have operated here since 2005, demonstrating the business success of the location. Disneyland DENSE RESIDENTIAL POPULATION (4 miles South) Fullerton Metrocenter is surrounded by a dense residential population with over 632,000 people, 188,000 households, and 70,000 multifamily units within a 5-mile radius of the property. Park Vista Apartments HIGH BARRIERS TO ENTRY (394 units) With few developable land sites and stringent development standards in the neighboring areas, significant barriers to entry limit the potential for future competition. STRATEGIC LOCATION IN HIGHLY DESIRABLE RETAIL CORRIDOR Fullerton Metrocenter is positioned adjacent to the 91 Freeway (576,000 VPD) in the heart of the City’s primary retail corridor that features nationally recognized Howard Johnson Hotel co-tenants like include Burlington, Costco, Lowe’s Home Improvement, and Walmart, amongst (287 rooms) City of Anaheim others. The traffic count in front of the center totals over 70,250 cars per day. Demographics 1-Mile 3-Mile 5-Mile 2019 Population 32,504 258,407 632,964 Number of Households 8,965 73,119 188,761 Avg Household Income $73,541 $93,399 $99,435 576,000 CARS PER DAY Within a 5-Mile Radius: 633,000 70,000 $5.6B FREEWAY ACCESS-RAMP RESIDENTS MULTIFAMILY UNITS IN CONSUMER SPENDING FREEWAY OFF-RAMP CARS PER DAY AT INTERSECTION OF HARBOR BLVD. AND 4 | 70,250 ORANGETHORPE AVE. City of Downtown LA (25 miles) Buena Park Knotts Berry Farm Fullerton College (1.15 miles away) Fullerton (22,000+ students) METROCENTER Highland Meadows Apartments (126 units) California State University Fullerton (2.5 miles away) ORANGETHORPE AVE (39,000+ students) Orangefair Village (94 units) Palm Garden Apartments (224 units) Fullerton Townhouse Apartments (72 units) Rock Pointe Apartments (232 units) Portico Villas Holiday Inn Express (128 units) (100 rooms) 28,232 CARS PER DAY OVER 70,250 CARS PER DAY HARBOR BLVD. - 42,016 CARS PER DAY AT INTERSECTION Aspect Apartments Opened July 2017 (323 units) | 5 Orangefair Marketplace VALUE ADD POTENTIAL Fullerton Metrocenter Is A Dominant Center Today, That 3.8% Offers Investors Several Avenues To Create Significant Value NOI CAGR In Both The Short And Long Term Square Feet: 433,258 Site Size: 30.3 acres Potential to add higher rent paying food-users on the pads or in the Southeastern portion of the Property Parcels: 8 Tax Parcels (outlined in Red) There has been strong interest from food-users for space here due Parking: 1,612 spaces (3.72 per 1,000 SF) to the exceptional visibility from Harbor Blvd and built-in customer Target Store: 192,050 SF (store area is 154,739 SF) 23 demand, visibility, immediate freeway access and the adjacent hotels. Walk Score: 84 Re-parcelization & Sell-Down Strategy There is the potential to re-parcelize the center and sell each piece Occupied separately to take advantage of lower cap rates for single tenant pads Vacant and strip center type assets, thereby generating a more attractive cash-on-cash returns. 4 Infill Site and Future Covered Land Play/ 22 Redevelopment Potential 12 20 21 14 1 1 1 1 At 30.3 acres of total land, there could be the future potential to build 24 10 1 13 an exceptional number of multifamily units on either a portion or 9 11 all of the asset. This strategy was recently successfully completed 2 at Orangefair Marketplace directly across the street with the Aspect 8 073-052-17 073-052-16 2 Apartments (323 units), which was completed in July 2017. 7 2 6 2 Signage & Façade Upgrades 5 2 43 With investment in a new signage system (both along both the exterior 40 30 roads and with directional signage internally) and upgraded facades, 4 073-052-20 073-052-15 3 3 3 3 44 41 3 new ownership could drive rental rates higher in the near-term. 2 FUTURE 3 4 4 4 34 32 31 Mark-to-Market Rent Opportunities 073-052-21 33 1 Several tenants at the center enjoy below market rents and have upcoming lease expirations allowing future ownership to grow NOI 6 | by increasing these tenants to market rent levels. KEY TENANTS 3.8% Suite Tenant SF %GLA Exp. Date NOI CAGR 047 Target 192,050 44.4% Aug-26 Square Feet: 433,258 073-052-11 010 Urban Air 43,660 10.1% Jan-30 Site Size: 30.3 acres 013 Sprouts Farmers Market 28,150 6.5% Jan-30 016 PetSmart 19,210 4.4% Mar-25 Parcels: 8 Tax Parcels (outlined in Red) 11% Below Market 019 Sola Salon 7,400 1.7% May-25 Parking: 1,612 spaces (3.72 per 1,000 SF) 045 Bank of America 7,180 1.7% Sep-24 Target Store: 192,050 SF (store area is 154,739 SF) 023 Super Mex 7,084 1.6% Oct-24 23 Walk Score: 84 046 Jewelry Mart 7,000 1.6% Jan-24 044 Denny's 6,055 1.4% Feb-40 015 Tilly's 6,040 1.4% Dec-23 043 Beauty Avenue 5,400 1.2% Dec-21 014 Spectrum 4,350 1.0% Sep-23 012 Orange County's Credit Union 4,000 0.9% Dec-23 002 Pacific Dental 2,950 0.7% Sep-23 4 21% Below Market 032 T Mobile 2,900 0.7% Apr-21 22 12 20 21 041 Burger King 2,874 0.7% Dec-21 14 1 1 1 1 24 001 H&R Block 2,785 0.6% Apr-23 10 1 13 Orangethorpe Avenue 021 AT&T 2,775 0.6% Oct-21 9 11 020 Hiccups 2,525 0.6% Aug-29 2 024 KFC 2,304 0.5% May-21 8 2 7 073-052-12 2 035 Club Pilates 2,050 0.5% Apr-26 6 2 048 Providence Health & Services 1,765 0.4% Nov-24 5 2 011 Vans 1,650 0.4% Jun-24 43 40 41% Below Market 30 003 OneMain Financial 1,560 0.4% May-20 4 3 3 3 3 073-052-13 028 GameStop 1,550 0.4% Jan-21 44 41 3 2 FUTURE 029 Yogurtland 1,400 0.3% Aug-23 3 4 4 4 34 32 31 025 Baskin Robbins 1,275 0.3% Oct-20 33 1 033 Jimmy John's 1,200 0.3% Feb-20 007 Great Clips 1,170 0.3% Oct-20 Harbor Boulevard | 7 Fullerton METROCENTER Fullerton INVESTMENT ADVISORS Orangethorpe Ave BRYAN LEY GLEB LVOVICH CA Managing Director Managing Director Harbor Blvd +1 310 407 2120 +1 949 798 4115 [email protected] [email protected] Buena Anaheim CA License #01458927 CA License #01496699 Park DANIEL TYNER TONY ENSBURY Director Associate +1 949 798 4125 +1 310 407 2153 [email protected] [email protected] CA License #01959818 CA License #02061712 DEBT ADVISOR LEASING CONTACT • John Wayne Airport/SNA - 18 miles JEFF SAUSE SHAUNA MATTIS • Newport Beach - 22 Miles Senior Director Executive Vice President Disneyland • Disneyland - 4 miles +1 310 407 2133 +1 310 694 3190 Route [email protected] [email protected] • Downtown Los Angeles - 25 miles CA License #01852507 CA License #01071320 • LAX International Airport - 32 miles.