Madison Plaza Stater Bros
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Madison Plaza Stater Bros. Shadow Anchored OFFERING MEMORANDUM 81106 CA -HWY 111, INDIO (PALM SPRINGS), CA Exclusively Listed By Ron Duong Senior Vice President Investments Senior Director, National Retail Group (949) 419-3233 direct [email protected] License: CA 01438643 Bryn Valaika Associate National Retail Group (949) 419-3216 direct [email protected] License: CA 02020507 Confidentiality Agreement The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any oth- er person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Madison Plaza - Indio, CA | Marcus Millichap | Activity ID: Y0100515 2 Executive Summary Madison Plaza - Indio, CA | Marcus Millichap | Activity ID: Y0100515 3 Executive Summary Prime Retail Location Shadow Anchored by Stater Bros. Indio is a Major Travelers Destination with Many Major Events & Attractions Subject Property is Shadow Anchored by a Successful Stater Bros. Which has Been Bringing Constant Foot Traffic to the Center for Over 25 Years Indio Hosts Major Events & Festivals that Bring in Millions of Visitors a Year Including: The Subject Property is 93% Occupied and has a Stable Mix of National & Local Retailers Including Papa John’s (5,000+ locations), Hertz Coachella – One of the Largest Music Festivals in the World (9,700+ Locations), Altura Credit Union (13 Locations), Metro PCS, as well Which Attracts over 500,000+ Visitors Per Year to the Empire Polo as a Mix of Popular & Seasoned Tenants Club Located Within 3 Miles from the Subject Property 50% of the Centers Tenants have Occupied Space for 10+ Years and Many Stagecoach - One of the Largest Country Music Festivals in the have Multiple Locations United States Which Attracts 200,000+ Visitors Per Year Signalized Corner Location on Highway 111 and Madison Street Where PGA West Tour Which is Part of the Tournament Players Club Combined Traffic Counts Exceed 40,882+ Cars Per Day Network of Courses Operated by the PGA Tour Which has Hosted the Tour’s CareerBuilder Challenge in 1987 and Again in 2016 Excellent Location in a Rapidly Growing City Indio & the Surrounding Area Have More Golf Courses Per Square Mile Coachella Valley is One of the Fastest Growing Areas in the County and is than Any Other Region in California the 2nd Largest Sub-Region in the Inland Empire Interstate 10 (75,000 Cars Per Day) Flows Directly Through Indio Exposing The Area Immediately Surrounding the Subject Property has Grown By the City to Thousands of Travelers a Day and is the Main Route for 120 Percent Since 2000 Southern California Travelers To/From Arizona Population Counts in Indio are on Track to Exceed 100,000 by 2020 Indio is on the Main Route to Several Tourist Destinations Including Palm Springs, Mount San Jacinto, and Joshua Tree National Park Strong Retail Fundamentals Dense Infil Area - Population Counts Exceed 171,200 Within a Five-Mile Radius with Over 2,000 Homes Scheduled to be Built Within Next 2 Years Excellent Ingress/Egress – The Subject Property has 6 Points of Entry Three of Which are on Highway 111 Average Household Income within Five Miles is $76,835 Which Exceeds the National Average Madison Plaza - Indio, CA | Marcus Millichap | Activity ID: Y0100515 4 Tenant Overview Papa John’s Pizza is an American restaurant fran- chise company. It runs the third largest take-out and pizza delivery restaurant chain in the United States. Papa John’s has grown to more than 5,000 restau- rants today. The company continues to grow by focusing on quality and taking care of their employees. Papa John’s was awarded Business of the Year by Busi- ness First in 2013, is the brand most associated with the NFL, and is recognized among the Best Franchise opportunities in 2013 by QSR Magazine. # of Locations 5,000+ Type Public Traded As PZZA Revenue $1.44 Billion Franchisee Operates Multiple Locations The Hertz Corporation, a subsidiary of Hertz Global Holdings Inc., is an American car rental company based in Estero, Florida that operates 9,700 inter- national corporate and franchisee locations. As the second-largest US car rental company by sales, locations, and fleet size, Hertz operates in 150 countries, including North America, Europe, Latin America, Africa, Asia, Australia, The Caribbean, the Middle East, and New Zealand. The Hertz Corporation owns Dollar and Thrifty Automotive Group - which separated into Thrifty Car Rental and Dollar Rent A Car. Hertz Global Holdings, the parent company of The Hertz Corporation, was ranked 264th in Forbes’ 2014 Fortune 500 list, and 296th in 2016. As of 2016, the company has revenues of $9.4 billion USD, assets of $1.9 billion USD, and 36,000 employees # of Locations 9,700+ Type Public Traded As HTZ Revenue $9.4 Billion Madison Plaza - Indio, CA | Marcus Millichap | Activity ID: Y0100515 5 Tenant Overview MetroPCS was established in 1994 founded by Roger Linquiest and Malcolm Lorang. Metro PCS is one of the leading providers of unlimited 4G LTE wireless service with no annual contract. Metro PCS makes wireless simple by offering unlimited data, talk and text with all applicable taxes and fees included – so there are no sur- prises. In October 2012, MetroPCS Communications reached an agreement to merge with T-Mobile USA, Inc., a deal that would “help the competing provider become more competitive with the other National Carriers”. On May 1, 2013, the combined company, now known as T-Mobile US, Inc., began trading on the New York Stock Exchange as TMU. Type Subsidiary Founded 1994 Headquarters Richardson, TX Owner T-Mobile US, Inc. Altura Credit Union is the largest credit union head- quartered in Riverside County, California, United States, licensed by the California Department of Financial Insti- tutions and insured by the National Credit Union Share Insurance Fund (NCUSIF). Altura Credit Union offers a wide range of financial products and services including: checking and savings ac- counts, online banking and web bill pay, mobile banking, Apple Pay, PopMoney, new and used vehicle loans, home mortgages, online and mobile loan applica- tions, and more. The credit union is also part of a network that allows members to conduct financial transactions at 5,200 shared branches (CU Service Centers) and fee-free access to more than 30,000 ATMs (CO-OP Financial Services). Type Credit Union Founded 1957 Headquarters Riverside, CA Website alturacu.com Madison Plaza - Indio, CA | Marcus Millichap | Activity ID: Y0100515 6 Financial Analysis Offering Summary Expenses Property Address 81022, 81106, 81096 CA-Hwy 111 Real Estate Taxes (1.2100% +$10,956) $135,223 Indio (Palm Springs), CA 92201 Insurance $17,767 Assessor’s Parcel Number 616-080-002/004/037 Building Maintenance $19,607 Current Occupancy 93% Trash $23,443 Year Built 1990 Utilities $3,363 Gross Leasable Area (GLA) ±30,619 Square Feet Water $13,581 Lot Size ±3.21 Acres (±139,827 Square Feet) Fire Monitoring $4,056 Non-Exclusive Parking Spaces 377 Pest Control $1,685 Security Expenses $18,454 Pricing Lighting Service $1,880 Price $10,270,000 CAM - Stater Bros $43,783 Cap Rate 6.40% Management 4% / $23,811 Price Per Square Foot $335.41 TOTAL EXPENSES $306,652 Expenses/SF $10.02 Annualized Operating Data Gross Potential Rent $728,012 Vacant Space at Market Rents $47,691 Total Scheduled Base Rent $680,321 $ net operating Expense Reimbursements $283,908 657,577