Anaheim West Plaza L 3150
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OFFERING MEMORANDUM ANAHEIM WEST PLAZA A TRUE VALUE-ADD OPPORTUNITY IN ORANGE COUNTY, CA 3150 - 3174 W. LINCOLN AVE | ANAHEIM, CA CLICK HERE TO VIEW THE PROPERTY VIDEO ANAHEIM WEST PLAZA OFFERING MEMORANDUM ANAHEIM WEST PLAZA 3150 - 3174 W. Lincoln Ave | Anaheim, CA LISTED BY TABLE OF CONTENTS CAITLIN ZIRPOLO EL WARNER ASSOCIATE EVP & NATIONAL DIRECTOR 04 | EXECUTIVE OVERVIEW Direct +1 949 432 4518 Direct +1 949 873 0507 Mobile +1 760 685 6873 Mobile +1 858 752 3078 [email protected] [email protected] 06 | PROPERTY OVERVIEW License No. 01987844 (CA) License No. 01890271 (CA) LEASING EXPERT 12 | AREA OVERVIEW MATT SUNDBERG Direct +1 949 777 5991 Mobile +1 770 757 1963 16 | FINANCIAL OVERVIEW [email protected] License No. 02052540 (CA) 3 SECTION I EXECUTIVE OVERVIEW 4 ANAHEIM WEST PLAZA Investment Summary OFFERING SUMMARY Price Best Offer In-Place NOI $698,282 Anaheim West Plaza is a neighborhood shopping center in the dense and thriving city of Anaheim. This asset provides an investor with the rare opportunity to In-Place Occupancy 63.0% acquire a value-add Orange county retail asset with near term up-side. Anaheim Stabilized NOI $1,302,506 West plaza is located within a flourishing residential and entertainment-based market with Knott’s Berry Farm 5 minutes away from the site. This center is Stabilized Occupancy 95.0% strategically located on the corner of Lincoln Avenue and Western Avenue, Total Rentable Square Feet ±80,429 SF two highly traveled streets, as well as immediately adjacent to dense residential neighborhoods, proving strong intrinsic value to the asset. Total Land Area ±5.8 AC Note: Difference between In-Place and Stabilized NOI is lease up to tenants INVESTMENT HIGHLIGHTS » Located within a desirable in-fill market in the most populated city in Orange County with demographics of 303,415 people in a 3-mile radius and 677,068 in a 5-mile radius. » Extremely rare value-add opportunity in prestigious Orange county. » The center benefits from being located on one of the highest trafficked intersections in Anaheim seeing 49,000 VPD at the hard corner of Western Ave and Lincoln Ave. » This asset provides an investor with the unique opportunity to increase NOI in the near term by over 186% through lease up. » Desirable E-commerce proof tenant line-up with over 78% of the center occupied by restaurant, service and medical retailers. » Located within Orange counties mecca for sports and entertainment, Anaheim West Plaza is within close proximity to Angels Stadium, Disneyland, the Honda Center and Knotts Berry Farm, allowing the site to receive additional out of town shoppers. 5 SECTION II PROPERTY OVERVIEW 6 ANAHEIM WEST PLAZA PHYSICAL DESCRIPTION PROPERTY NAME PARCEL MAP Anaheim West Plaza ADDRESS 3150 - 3174 W. Lincoln Ave LOCATION Anaheim, CA PARCEL 135-281-19 NET RENTABLE AREA ±80,429 SF YEAR BUILT/RENOVATED WESTERN AVE 1986 / 2008 PARKING STALLS ±387 Surface Spaces (4.80 : 1,000 SF) ZONING ±CG LINCOLN AVE ±49,000 VPD TYPE OF OWNERSHIP Fee Simple 7 ANAHEIM, CALIFORNIA SITE PLAN - CURRENT TENANCY Suite Tenant SF A106 Vacant 3,000 A110 Coin Laundry 2,737 B102-B118 Fresenius Medical Care 12,063 B120 Cosmo Prof 2,160 D100 B122 Working Wardrobes 2,400 D102 NAP D104 B124 Vacant 2,400 B102B118 D106 B128 Vacant 2,400 D108 B134 Mon Amor Banquet Hall 9,200 B120 B140 Vacant 10,413 B122 B160 Vacant 6,252 B124 C100 SaveFavor 15,393 C102 Vacant 5,299 B128 D100 Subway 1,398 D102 Dentist (Michael Le) 1,320 A D104 La Columena Bakery 1,320 C102 C100 B134 D106 Royal Hair Salon 964 A B160 B140 D108 Precise MRI 1,710 Totals 17 Suites 80,429 SF Occupied Vacant As shown and will be discussed herein, the above site plan illustrated the centers current physical occupancy and does not include LOI’s in-place 8 Anaheim West Plaza SITE PLAN -PROPOSED TENANCY Suite Tenant SF A106 Vacant 3,000 A110 Coin Laundry 2,737 D100 B102-B118 Fresenius Medical Care 12,063 D102 NAP B120 Cosmo Prof 2,160 D104 B102B118 D106 B122 Working Wardrobes 2,400 D108 Proposed E-commerce B124-B128 4,800 B120 Proof Use B134 Mon Amor Banquet Hall 9,200 B122 B140-C102 Proposed Fitness User 37,357 B124B128 PROPOSED ECOMMERCE D100 Subway 1,398 PROOF USER D102 Dentist (Michael Le) 1,320 A D104 La Columena Bakery 1,320 B134 B140C102 D106 Royal Hair Salon 964 A PROPOSED FITNESS USER D108 Precise MRI 1,710 Totals 13 Suites 80,429 SF Occupied Vacant Proposed As shown and will be discussed herein, the above site plan illustrated the centers current physical occupancy and does not include LOI’s in-place 9 ANAHEIM, CALIFORNIA ADDING VALUE - LEASE UP As discussed, this property is a tremendous opportunity to acquire a value add shopping center in infill Orange County with strong near term leasing activity. The current occupancy is only 63% but will increase to 97% with just a few leases that are currently under negotiation. The current NOI is forecasted to double in the next 6 months by leasing out the 37,357 space to a fitness user and the remaining 4,800 SF space to ecommerce proof retailers. The timing could not be more perfect to acquire this asset and ride the value add wave that will create significant cash on cash returns while controlling irreplaceably located real estate. While the property has had its issues due to the poor tenant selections and store closings it is perfectly positioned for a quick recovery, which is supported by the significant leasing activity recently received. Please reach out to our firm that also manages the leasing of this property to fully understand the value enhancing program we have put forward. 10 ANAHEIM WEST PLAZA SURROUNDING AREA N LINCOLN BLVD ± 49,000 VPD 11 SECTION IV AREA OVERVIEW 12 ANAHEIM WEST PLAZA THE CITY OF ANAHEIM Anaheim is a city in Orange County, California, part of the Los Angeles metropolitan area. As of 2016, the city had a population of 336,741, making it the most populous city in Orange County and the 10th most populous city in California. Anaheim is the second largest city in Orange County in terms of land area (after Irvine) and is known for its theme parks, sports teams, and convention center. Anaheim was founded by fifty German families in 1857 and incorporated as the second city in Los Angeles County on March 18, 1876. The city developed into an industrial center, producing electronics, aircraft parts, and canned fruit. It is the site of the Disneyland Resort, a world-famous grouping of theme parks and hotels which opened in 1955, Angel Stadium of Anaheim, Honda Center and the Anaheim Convention Center. The Disneyland Resort is the largest employer in Anaheim with approximately 22,200 employees. Anaheim is home to two major professional sports teams: The Anaheim Ducks (NHL) and Anaheim Angeles (MLB). The Santa Ana Freeway (I-5), the Orange Freeway (SR57) and the Riverside Freeway (SR 91) all pass through Anaheim. Anaheim is equidistant from both John Wayne Airport and Long Beach Airport (15 miles each). Anaheim West Plaza is located within Southwest Anaheim. This portion of Anaheim is known for having a high number of residential properties. The demographic makeup of this particular region is primarily Hispanic and Asian. ANAHEIM CONVENTION CENTER DEMOGRAPHICS - ANAHEIM, CA TOURISM In June 2017, Anaheim welcomed an estimated 2.1 million visitors to the destination and their Population 1-Mile 3-Mile 5-Mile spending throughout Orange County contributed approximately $740 million to the local 2023 Projection 38,251 312,271 695,044 Compared to June 2016, Anaheim visitor volume increased by 1.3 percent and total visitor economy. 2018 Estimate 37,084 303,415 677,068 spending in Orange County by Anaheim visitors rose by 4.4 percent. Year-to-date (January - June 2017): 2010 Census 35,002 287,828 648,681 Growth 2018-2023 3.15 % 2.92 % 2.65 % » 12,083,000 visitors have traveled to Anaheim, which is 10.6 percent more than 2016. Households 1-Mile 3-Mile 5-Mile » Spending by Anaheim tourists in Orange County totaled $4.213 billion, which is an increase 2023 Projection 11,119 90,991 208,027 of 10.1 percent compared to 2016. 2018 Estimate 10,504 86,186 197,500 » Monthly visitor statistics help to illustrate the positive impact and opportunity tourism brings 2010 Census 9,852 81,235 187,750 to Anaheim and Orange County. Revenue generated from tourism leads to an increase in Growth 2018-2023 5.85 % 5.57 % 5.33 % nonexportable jobs, small business success, and contributions to the city’s general fund that Income 1-Mile 3-Mile 5-Mile is funneled to police and fire departments, libraries and maintenance for local parks. 2018 Average $79,262 $82,407 $92,661 Household Income 13 ANAHEIM, CALIFORNIA ORANGE COUNTY, CALIFORNIA With a population of over 3,170,000, Orange County is the third most populous county in California. It is the second most densely populated county in the state, second to only San Francisco County. There are thirty-four (34) incorporated cities within the county, there is no defined urban center of Orange County, the majority of the county is comprised of suburban neighborhoods aside from older cities within the County such as Anaheim, Fullerton, Huntington Beach, and Orange which have traditional downtown centers. » Orange County has one major airport: John Wayne Airport which handles nine (9) million passengers annually through fourteen (14) different airlines. » Orange County is home to several well-known shopping malls including South Coast Plaza, Fashion Island, Brea Mall, Irvine Spectrum, Downtown Disney, and the Outlets at Orange.