Baskin Robbins Has Operated at Subject Property for Over 40 Years
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OFFERING MEMORANDUM 2019 SANTA ANA DEMOGRAPHICS 1-Mile 2-Mile 3-Mile TOTAL POPULATION TOTAL POPULATION TOTAL POPULATION 42,251 168,939 348,499 Total Daytime Population Total Daytime Population Total Daytime Population 44,384 167,724 344,908 Total Households Total Households Total Households 10,346 40,168 83,326 TENANTS ARE BOTH NATIONALLY RECOGNIZED BRANDS BASKIN ROBBINS HAS OPERATED AT SUBJECT PROPERTY FOR OVER 40 YEARS CENTRAL ORANGE COUNTY 2-TENANT NNN RETAIL INVESTMENT 123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 TABLE OF CONTENTS INVESTMENT HIGHLIGHTS 3 RENT ROLL 4 SUBJECT PROPERTY INCOME & EXPENSE 5 SITE PLAN 6 AERIAL 7 ABOUT THE TENANTS 8 SANTA ANA OVERVIEW 9 ORANGE COUNTY OVERVIEW 10 DISCLAIMER 11 JONATHAN SELZNICK Senior Vice President - Principal EXCLUSIVELY LISTED BY [email protected] | 949-734-0243 CA License: 01323949 2 INVESTMENT HIGHLIGHTS HIGHLIGHTS Two-Tenant NNN Retail Investment with National Tenants OFFERING SUMMARY Baskin Robbins and CareMore Baskin Robbins has successfully operated at the Subject PROPERTY INFORMATION Property since it was built in 1976; and previously operated in nearby location since 1955 (Currently working on Lease Extension) 123-201 West 17th Street Address: 122 West 18th Street Santa Ana, CA 92706 CareMore renewed lease in 2017 and waived termination clause in 2019 demonstrating strength of the Subject Location Gross Leasable Area: 3,880 Square Feet High Traffic Intersection with approximately 70,000 Cars per Day at the intersection of 17th Street and Main Street Parcel Size: 18,731 Square Feet Dense, Infill, Central Orange County Location with 1-Mile Total Main St/W 17th St: 70,000 CPD Population of 42,251 Traffic Counts (Costar): N Broadway/W 17th St: 66,000 CPD Significant 1-Mile Total Daytime Population of 44,384, within Parking Ratio: 7:1 (28 Stalls) immediate proximity to County of Orange and City of Santa Ana Civic Center Less than 1/2 Mile from I-5 Freeway On/Off-Ramps; Main FINANCIAL INFORMATION and 17th Streets are both major thoroughfares with access to I-5 Price: $1,950,000 NOI: $112,665 East of Management; NNN Leases Cap Rate: 5.78% Price/SF: $503 5 Points of convenient Ingress/Egress from 17th Street, North Broadway, 18th Street and Main Street Located within Designated Qualified Opportunity Zone 123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 3 RENT ROLL LEASE RENT/ RENT/ LEASE TENANT SUITE SF LEASE END INCREASES OPTIONS COMMENTS START SF MO TYPE Annual CPI Baskin Robbins 201 1,125 2/13/76 $2.88 $3,238 NNN 1 (10-Year) 03/31/22* (4/1/20: $3,339.80) *Lease Extension in Progress CareMore CAM Cap 3% Annual; Option Rent 123 2,755 10/1/12 10/31/22 $2.40 $6,612 - NNN 1 (3-Year) (Nifty After Fifty) 95% of FMV TOTAL SQUARE FOOTAGE: 3,880 $9,850 Total Monthly Rent TOTAL AVAILABLE: 0 0% Vacancy $118,198 Total Annual Rent TOTAL OCCUPIED: 3,880 100% Occupancy JOHN WAYNE AIRPORT COUNTY OF ORANGE/ PACIFIC OCEAN SANTA ANA CIVIC CENTER NORTH BROADWAY SUBJECT PROPERTY MAIN STREET WEST 17TH STREET 70,000 CPD 66,000 CPD S E W N WEST 18TH STREET PUBLIC ALLEYWAY 123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 4 INCOME & EXPENSE INCOME & EXPENSE ANNUALIZED OPERATING DATA Current Scheduled Gross Income (SGI): $118,198 Expense Reimbursement: $34,870 Total Operating Income: $153,068 Gross Operating Income: $153,068 Total Operating Expenses: ($40,402) Net Operating Income (NOI): $112,665 5.78% Cap Rate OPERATING EXPENSES Amount $/SF Taxes (1.26%): $24,570 $6.33 Insurance: $1,700 $0.44 CAM: $8,600 $2.22 Unrecovered CAM (CareMore): $175 $0.05 Management (3.5% of TOI): $5,357 $1.38 Total Expenses: $40,402 $10.41 Per Year $0.87 Per Month 123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 5 SITE PLAN W S N N W E WEST 18TH STREET E S 5 360,000 CPD SUBJECT PROPERTY MAIN STREET 70,000 CPD WEST 17TH STREET PUBLIC ALLEYWAY WEST 18TH STREET WEST 17TH STREET NORTH BROADWAY 66,000 CPD 123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 6 AERIAL DISNEYLAND ANGEL STADIUM HONDA CENTER MAIN PLACE MALL OF ANAHEIM • Currently over $1.1M Sq Ft Retail Shopping Mall • Completed $50M Renovation in 2015 • Additional $300M Mixed-Use Redevelopment Announced March, 360,000 CPD 5 2019 • Including Additional Retail/ Entertainment Uses, and 700 new Residential Units 5 SUBJECT PROPERTY MAIN STREET WEST 18TH STREET PUBLIC ALLEYWAY NORTH BROADWAY 66,000 CPD WEST 17TH STREET 70,000 CPD N W E S 123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 7 ABOUT THE TENANTS BASKIN-ROBBINS is one of the world’s largest chain of ice cream specialty CAREMORE HEALTH SYSTEM, a subsidiary of Anthem Inc. (NYSE: AMTM- shops, with more than 7,500 retail locations in more than 50 countries 2018 Revenue was over $92B), is an integrated health plan and care around the world. Headquartered in Canton, Mass., Baskin-Robbins is part delivery system for Medicare and Medicaid patients. CareMore was founded of the Dunkin’ Brands Group, Inc. (Nasdaq: DNKN) family of companies, in 1993 by Sheldon Zinberg as a small Southern California regional medical but was founded in 1953 by Burt Baskin and Irv Robbins in Glendale, group. Today, CareMore serves 100,000 patients across 8 states with annual CA. The company is known for its “31 flavors” slogan, with the idea that revenues of $1.2B. a customer could have a different flavor every day of any month, and has been a household name synonymous with Ice Cream for decades. Encore Wellness™ by Nifty after Fifty® offers health plans, medical groups, Accountable Care Organizations (ACOs) and hospital partners true • Strong Franchisee with Over 25 Years of Operating at Subject population health care management at 29 wellness centers in four states Property across the U.S. catered to mature adults from 50-95 years old. Founded in • Baskin Robbins has Operated in Subject Property’s Trade Area 2006, Encore Wellness™ by Nifty after Fifty® partners with senior health since 1955 insurance companies like CareMore Health Plan, Monarch HealthCare, • Currently Working on Early Lease Extension and TexanPlus in providing its members with the benefit of Nifty’s unique programs of good health to more seniors. This year, 15,000 members will • World’s Largest Chain of Ice Cream Specialty Shops make over one million fitness visits to its centers. • 7,500 Locations in More than 50 Countries, Founded in 1953 • Operated at Subject Property since 2012 • Has Already Extended the Lease Once (2017) • Waived Termination Clause (2019) Demonstrating Commitment to the Subject Location • Parent Company Anthem is the Largest For-Profit, Managed Health-Care Company in the Blue Cross Blue Shield Association • CareMore Itself is a $1.2B Division of Anthem (a $92B Company) www.caremore.com www.encore-wellness.com www.baskinrobbins.com www.niftyafterfifty.com 123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 8 LOCATION OVERVIEW SANTA ANA is located in central Orange County about 30 miles southeast of shopping center to achieve $1B in annual sales volume (currently at over $1.5B Los Angeles. Santa Ana’s central location and easy access to freeways makes annually). South Coast Plaza is part of the South Coast Metro District, a dense it a great spot from which to access Orange County attractions including mix of residential, office, hotel, and retail developments also including the Disneyland, Newport Beach, Laguna Beach, Knott’s Berry Farm, the Orange Segerstrom Center for the Arts and South Coast Repertory Theater Company. County Performing Arts Center, Los Angeles Angels of Anaheim Stadium, and South Coast Metro is also adjacent to the Santa Ana/John Wayne International the Honda Center in Anaheim. Santa Ana is the County Seat, the second largest Airport. city in Orange County, and eleventh largest in California. The City is also known as the financial and governmental center of Orange County. Santa Ana also boasts a historic downtown area. The 36-block section of homes and commercial buildings was added to the National Register of Historic Places Santa Ana is the fourth-most densely populated city nationally (among cities in 1984. Downtown Santa Ana is home to approximately 100 buildings that were of over 300,000 residents), trailing only New York City, San Francisco, and constructed between the 1870’s and the 1940’s. The City has been building on Boston). In 2011 Forbes ranked Santa Ana the fourth-safest city of over 250,000 its historic downtown element to create a bustling artist village. Starting in the residents in the United States. early 1990’s, the city began to embrace the arts as a way to revive downtown. Another addition to the downtown area was the Long-awaited 10-story, $123 Major retail in Santa Ana includes legendary South Coast Plaza, the largest million Ronald Reagan Federal Building and U.S. Courthouse that has become shopping center on the West Coast of the United States, and the first retail Santa Ana’s latest “jewel.” MAINPLACE MALL HISTORIC DOWNTOWN SANTA ANA US COURTHOUSE 123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 9 LOCATION OVERVIEW ORANGE COUNTY is the third most populous county in the State of California Orange County is home to some of the world’s most popular tourist attractions and the sixth most populous county in the United States; Located in the heart such as The Disneyland Resort and California Adventure, Knott’s Berry Farm, of Southern California between Los Angeles to the north, San Diego to the Mission San Juan Capistrano and miles of popular beaches.