Southern California's Premier Sales Team
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SOUTHERN CALIFORNIA'S PREMIER SALES TEAM INVESTMENT ADVISORS BRANDON MICHAELS VAUGHN BROWN Senior Managing Director of Investments Investment Associate Senior Director, National Retail Group National Retail Group Tel: (818) 212-2794 Tel: (818) 212-2718 Fax: (818) 212-2710 Fax: (818) 212-2710 [email protected] [email protected] License: CA #01434685 License: CA #01955613 www.BrandonMichaelsGroup.com www.BrandonMichaelsGroup.com TEAM MEMBERS Sean Brandt Website Vaughn Brown www.brandonmichaelsgroup.com Ben Brownstein Nicole Cottrell Andrew Leff Instagram Steven Schechter @brandonmichaelsgroup Austin Sreden CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure 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 Marketing Brochure 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 due diligence investigation. 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, PCB’s 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 in this Marketing Brochure 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. NON-ENDORSEMENT NOTICE Marcus & Millichap 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 corpora- tion of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. SOUTHERN CALIFORNIA'S PREMIER SALES TEAM TABLE OF CONTENTS PROPERTY OVERVIEW 01 TENANT OVERVIEW 02 AREA OVERVIEW 03 01 PROPERTY OVERVIEW 5 A unique opportunity to acquire an A+ rated National Credit Tenant with seven years remaining on their initial lease term in one of Southern California's fastest growing communities The Brandon Michaels Group of Marcus & Millichap is pleased to present for sale a single tenant US Bank located at 14075 Main St in Hesperia, California. Strategically located at the signalized intersection of Main Street and Topaz Avenue, the 3,577 square foot building situated on .69 acres of land is an out parcel to The Shops at Topaz, a 99 Only anchored retail center. The property also benefits from the strong intersection of over 60,000 VPD Other which include other tenants such as Kaiser Permanente Health Facility and Davita Hesperia Dialysis. This retail property benefits from close proximity to residential density and nearby freeway access to the I-15. The area shows minimal competition and prominent demographics with a daytime population of in excess of 38,000 and a general population of 128,300 with an average household income in excess of $66,000. 14075 Main Street creates a unique and rare opportunity to purchase a strong credit single tenant asset in Southern California’s fast growing residential community of Hesperia. U.S. Bank Corp is a bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. It is the parent company of US Bank National Association, known as US bank, which is ranked 7th on the list of largest banks in the United States with a S&P Rating of A+. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions. 6 | U.S. BANK - 14075 MAIN STREET, HESPERIA, CA 92345 McDonald's MAIN ST MAIN ST TOPAZ AVE 7 • Signalized Hard Corner | Traffic Counts Exceeding 37,000 Cars Per Day • Dominant Shopping Center in Trade Area | Outparcel to the Shops at Topaz with 99 Cents Only as Anchor • Corporate Guaranteed Lease | Strong National Credit Tenant | US Bank (A+ Rated by S&P Rating) • Long-Term Lease with Rare 5% Rent Increases Every Two Years • Rare Southern California Net-Lease Investment Opportunity | Drive-Thru Concept/Prototype Location INVESTMENT HIGHLIGHTS INVESTMENT • Dense Demographics | 128,000 Households Supported by more than 28,000 Daytime Employees Within 3 Miles • Over 22,000 Planned Homes to be Built over the Next 10 Years Within Five Miles of the Subject Property, including the Approved Tapestry Project, a 16,000-Home Master- Planned Community that will Sit on over 9,300 Acres of Land • The Population of Hesperia has Grown more than 10% since 2010 and 60% since 2000. The City noted a 35% Increase in Single Family Residential Permits Between 2000 and 2015 8 | U.S. BANK - 14075 MAIN STREET, HESPERIA, CA 92345 U.S. BANK - 14075 MAIN STREET, HESPERIA, CA 92345 | 9 $978 PRICE/SF (BUILDING) PROPERTY INFORMATION $116 PRICE/SF(LAND) U.S. Bank ADDRESS: 14075 Main Street, Hesperia, CA 92345 PRICE: $3,500,000 5.21% CAP RATE BUILDING SF: 3,577 SF PROPERTY HIGHLIGHTS PROPERTY PRICE/SF (BUILDING): $978.47 LAND SF: 30,056 SF PRICE/SF (LAND): $116.45 25 free Surface Spaces Available; PARKING: Ratio of 6.99/1,000 SF APN NUMBER: 3057-071-06 ZONING: NC 10 | U.S. BANK - 14075 MAIN STREET, HESPERIA, CA 92345 11 PROPERTY DETAILS PROPERTY SITE SQUARE FOOTAGES PARKING The total building square footage is 25 surface spaces are available; Ratio The subject property is located on the 3,577 SF. The total land square footage of 6.99/1,000 SF. northeast corner of Main Street and is 30,056 SF. Topaz Avenue. TRAFFIC COUNTS APN NUMBER ZONING The traffic counts along Main Street The property is zoned NC. The APN number is 3057-071-06. are over 40,000 vehicles per day. 12 | U.S. BANK - 14075 MAIN STREET, HESPERIA, CA 92345 MAIN ST TOPAZ AVE 13 02 TENANT OVERVIEW TENANT OVERVIEW As one of the largest bank holding companies in the Unites States, U.S. Bancorp has $403 billion in assets, and owns U.S. Bank National Association. U.S. Bancorp provides services through a network of banking offices in 25 U.S. states, Canada, Mexico, Brazil, and Europe. California is the bank holding company’s largest market. In the past few years, U.S. Bancorp has recorded TENANT OVERVIEW TENANT incremental growth. U.S. Bank National Association provides commercial banking services for individuals, businesses, and institutions. It offers personal banking services, including checking and savings accounts, and certificates of deposits; and personal loans and credit, such as mortgage, home equity, personal line of credit, auto loans, boat loans, and RV loans. The company also provides business banking ervices, including savings and checking accounts; and business loans, such as business credit lines, quick loans, SBA loans, real estate loans, equipment financing, and business ownership and expansion loans. In addition it offers investing and wealth management products and services, including retirement and individual retirement accounts, financial planning, investment guidance, online investing, private banking, and wealth management. Furthermore, the company provides overdraft protection, online banking, credit cards, payroll services, Visa cards, mobile banking, bill pay, and student banking services. U.S. Bank National Association was formerly known as Firstar Bank. National Association and changed its name to U.S. Bank National Association in august of 2001. The company was founded in 1863 and is based in Cincinnati, Ohio. It has banking and ATMs locations in the United States and internationally. U.S. Bank National Association operates as a subsidiary of U.S. Bancorp. 16 | U.S. BANK - 14075 MAIN STREET, HESPERIA, CA 92345 TENANT SUMMARY 14075 Main Street Address Hesperia, CA 92345 Tenant U.S. Bank Lease type Double Net Roof & Structure Landlord Initial Lease Term 20 Years Rent Commencement 05/04/2007 Expiration Date 05/03/2027 Taxes Tenant Pays Insurance Tenant Pays Utilities Tenant Pays Increases 5% Increases, 2 Years Assignment No Assignment Releases Tenant From Liability U.S. BANK - 14075 MAIN STREET, HESPERIA, CA 92345 | 17 RENT SCHEDULE RENTAL RENTAL LEASE YEAR ANNUAL RENT LEASE YEAR ANNUAL RENT INCREASE INCREASE 5/1/2021 - 4/30/2023 $182,360.00 Option 3 (5 Yrs) 5/1/2023 - 4/1/2025 $191,478.00 5% 5/1/2037-4/30/2039 269,482 5% 5/1/2025 - 4/30/2027 $201,052.00 5% 5/1/2039-4/30/2041 282,900 5% TENANT OVERVIEW TENANT 5/1/2041-4/30/2042 297,040 5% Option 1 (5 Yrs) 5/1/2027-5/30/2029 $211,104.00 5% Option 4 (5 Yrs) 5/1/2029-4/30/2031 $221,659.00 5% 5/1/2042 - 4/30/2043 297,0 40 5/1/2031-4/30/2032 $232,742.00 5% 5/1/2043 - 4/30/2045 311,909 5% 5/1/2045 - 4/30/2047 327,492 5% Option 2 (5 Yrs) * Current base rent up until 4/30/2021 $14,473/month.