Net-Leased Single Tenant | Regal Cinemas | 337 Placerville Dr. Placerville, CA 95667 Offering Memorandum presented by the Alam Team
Mary Alam, MBA Ganga Balebail Joshua Ballesteros CJ Brill Senior Vice President Investment Advisor Investment Advisor Investment Advisor O: 415.358.2111 O: 415.534.0110 O: 415.480.0214 O: 415.349.0147 M: 415.297.5586 M: 510.862.4612 M: 209.518.9025 M: 310.793.6069 [email protected] [email protected] [email protected] [email protected] CalDRE #01927340 CalDRE #02015344 CalDRE #02010271 CalDRE: #02073511 Table Of Contents Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Table of Contents
3 Section 1 Executive Overview
5 Section 2 Location Overview
8 Section 3 Property Overview
16 Section 4 Financial Overview
20 Section 5 Comparables
30 Section 6 Demographics Confidentiality & Disclosure
The information contained in the following Investment Summary is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from NAI Northern California and should not be made available to any other person or entity without the written consent of Broker. This Investment Summary 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. Broker 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 improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue occupancy of the subject property.
The information contained in the Marketing Brochure has been obtained from sources we believe to be reliable; however, Broker has not verified, and will not verify, any of the information contained herein, nor has Broker conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential purchasers must take appropriate measures to verify all the information set forth herein.
www.nainorcal.com 2 Section 1 EXECUTIVE 1 OVERVIEW Executive Summary NAI Northern California, as exclusive advisor, is pleased to offer Investment Overview for sale this Regal Cinemas single tenant NNN property located in the city of Placerville in El Dorado County, CA. The subject is a Regal Cinemas 34,355 SF building located on a large 3 acre lot only 2 miles from 337 Placerville Dr. busy Downtown Placerville, and a 3-minute drive from highway 50 with over 40,000 cars per day. The current tenant, Regal Cinemas, Placerville, CA 95667 and the previous operator, Signature Theaters LLC, have been operating this successful and only Theater in Town for the past 31 years.Tenant has exercised every option in their lease and has four Offering Summary years remaining on the current term.
Highlights PRICE $4,100,000 • NNN corporate lease with Regal Cinemas, Inc. PRICE/SF $119 • Attractive yield: 7.1% Cap Rate CAP RATE 7.1% • Below market rents with market cap rate at 10% MARKET CAP RATE 10% • Only Theater in town — accommodates a large public with NOI $290,307 8 screen complex • Easy access to Highway 49 and 50 via I-80 and I-50 LEASE TYPE NNN • Ample parking with tenant leasing neighboring land for LOT SIZE 3 AC additional parking lot BUILDING SIZE 34,355 SF • Neighboring tenants: Office Max, TJMAxx, KMart, Raley’s, YEAR BUILT 1965 Big 5 Sporting Goods • Regal Entertainment Group partners with Fandango, ZONING C Movietickets.com, The Coca-Cola Company and Atom MARKET Sacramento Tickets SUB-MARKET El Dorado County Ret • Regal Cinemas invest in best cutting edge theatre technologies like IMAX, RealD 3D, 4 DX, Screen X, Dolby Atmoslike IMAX, RealD 3D, 4 DX, Screen X, Dolby Atmos
www.nainorcal.com 4 Section 2 LOCATION 2 OVERVIEW Location Overview
Placerville Folsom Sacramento Santa Rosa
Stockton
San Francisco Modesto
Palo Alto San Jose Merced
www.nainorcal.com 6 LocationLocation DescriptionOverview Description
Placerville Placerville is centrally located between Sacramento, the State capitol, and South Lake Tahoe, world-famous recreation center. Situated above the fog line and below the snow line, Placerville boasts an ideal climate with four distinct seasons. Accessibility to Placerville is via State Highway 49 and U.S. Highway 50, along one of the most traveled corridors in California. Placerville’s treasured heritage is reflected in the historical, nineteenth century architecture of its downtown core. In addition, Placerville is the County seat and the center of financial, commercial, civic, and Government activity. Serving as a “hub” for many nearby destinations and activities, Placerville is well situated. Premier wineries, Apple Hill Ranches, Historic Coloma, the American River, and the ElDorado National Forest are all located within minutes of downtown Placerville. The city has many old buildings from the Gold Rush days and also was also on the line of the Pony Express. The future of Placerville’s business economy will continue to be strengthened and infusedby these established and newly developing areas of opportunity surrounding the hub.
El Dorado County With its western border touching California’s Central Valley, and its eastern boundary meeting Nevada high in the Sierra Nevada mountains overlooking Lake Tahoe, El Dorado County stretches across 90 miles of foothills, valleys and mountain peaks. Two major highways, U.S. 50 and State Route 49, intersect the county while State Route 88 establishes the county’s southern border with Amador and Alpine Countries. Interstate 5 and Interstate 80 are within 25 minutes of El Dorado Hills. This central west coast location offers one day automobile access to a variety of cities, including San Francisco (2.5 hours), San Jose (3.9 hours), Los Angeles (8 hours), Portland (8 hours), and Reno (1.5 hours). Since the early 1980’s, El Dorado County has been included in the Sacramento Metropolitan Statistical area. Major residential communities (El Dorado Hills, Cameron Park, and Diamond Springs) in the western part of the county serve as suburban areas to the booming Sacramento.
Source: Wikipedia metropolitan region
www.nainorcal.com 7 Section 3 FINANCIAL 3 OVERVIEW Lease Abstract
Lease Commencement Date: December 31, 1997 Type of Ownership: Fee Simple
Lease Expiration Date December 31, 2022* Lease Type: NNN
Term Remaining: 4 Years Roof & Structure: Tenant Zoning: C
* TENANT HAS THE RIGHT TO TERMINATE THE LEASE ANYTIME WITH A 180 DAY PRIOR NOTICE
Tenant Size Monthly Rent Annual Rent Rent/SF Lease Start Lease Exp.
Regal Cinemas 34,355 SF $24,192 $290,307 $.70 Dec 1997 Dec 2022
www.nainorcal.com 9 Rent Roll Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Annual Market Tenant Suite Current Current Current Market Market Annual Lease Lease Name Size (SF) Rent/SF Rent Rent Rent/SF Rent Rent Start End
Regal Cinemas 34,355 $.70 $24,192 $290,307 $1.00 $34,355 $412,260 02/01/1997 12/31/2022*
Totals/Averages 34,355 $.70 $24,192 $290,307 $1.00 $34,355 $412,260
* TENANT HAS THE RIGHT TO TERMINATE THE LEASE ANYTIME WITH A 180 DAY PRIOR NOTICE
nainorcal.com 10 Financial Summary Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Investment Overview CURRENT MARKET
Price $4,100,000 $4,100,000 Approximate Square Footage 34,355 34,355 Price per Square Footage $119 $119 CAP Rate 7.10% 10.06%
Operating Data CURRENT MARKET
Gross Scheduled Income $290,307 $412,260 Gross Operating Income $290,307 $412,260 Operating Expenses - - - - Net Operating Income $290,307 $412,260 Debt Service -$120,852 -$120,852 Pre-Tax Cash Flow $169,455 $291,408 Cash-on-Cash Return % (yr 1) 6.89% 11.85% Principal Reduction (yr 1) + $31,436 + $48,913 Total Return (yr 1) $200,891 $322,844 Return on Investment % 8.17% 13.12%
Financing Data CURRENT MARKET
Loan Amount $1,640,000 $1,640,000 LTV 40.00% 40.00% Interest Rate 5.500% 5.500% Debt Service $120,852 $120,852 Debt Service Monthly $10,071 $10,071 Amortization 25 25
* TENANT HAS THE RIGHT TO TERMINATE THE LEASE ANYTIME WITH A 180 DAY PRIOR NOTICE
nainorcal.com 11 Tenant Profile
Regal Entertainment Group is now part of Cineworld Group plc with completion of its acquisition on February, 28 2018. Cineworld Group plc is the world’s second largest cinema chain, with 9,538 screens across 793 sites in 10 countries: the US, the UK, Ireland, Poland, Romania, Israel, Hungary, the Czech Republic, Bulgaria and Slovakia. The group’s primary brands are Regal Cinemas (in the US), Cineworld and Picturehouse (in the UK & Ireland), Cinema City (throughout Europe) and Yes Planet (throughout Israel). Cineworld is currently the leading cinema operator in the UK by box office market share (based on revenue), with 99 cinemas and over 1017 screens, including Ireland’s single largest multiplex by screens and customer base.
Regal Entertainment Group operates the largest movie theater circuit in the US, operating theaters under the Regal Cinemas, United Artists, Edwards, Great Escape Theatres and Hollywood Theaters brands. As of Dec 31, 2017, the company operated 560 theater locations and 7,322 screens in 42 states, Guam, Saipan, American Samoa and the District of Columbia.
TOTAL REVENUES (MM) TOTAL REVENUE GROWTH CORPORATE NAME Regal Entertainment Group
$3,163.0 -1.1% SECTOR Leisure & Entertainment Venues
STORES AVG SALES PER SQ FT HEADQUARTERS Knoxville, TN
7830 - Services - PRIMARY SIC CODE 560 $93 Motion Picture Theaters
512131 - Motion Picture Theaters PRIMARY NAICS CODE AVG STORE GROSS SQ FT TOTAL EMPLOYMENT (except Drive-Ins)
56,000 26,047 FISCAL YEAR ENDED December 31, 2017
www.nainorcal.com 12 Section 4 PROPERTY 4 OVERVIEW Additional Photos
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nainorcal.com 18 Retail Map
Regal Cinemas Placerville downtown
®
County Fair Shopping Center
www.nainorcal.com 19 Section 5 COMPARABLES 5 Sales Comparables Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Subject Property 337 Placerville Dr. | Placerville, CA 95667
Sale Price: $4,100,000 Lot Size: 130,680 SF Year Built: 1965 Building SF: 34,355 SF Price PSF: $119 NOI: $290,307 CAP: 7.10%
1 Galaxy Porterville 9 Theatre - Porterville Plaza 631 N Indiana St | Porterville, CA 93257
Sale Price: $5,333,333 Lot Size: 142,006 SF Year Built: 1998 1 Building SF: 32,167 SF Price PSF: $165.80 Closed: 07/02/2015
Investment Triple Net Lease. The seller reported a sales leaseback for 20 years. The tenant is Galaxy Theatre.
2 1861-1877 Solano Ave Berkeley, CA 94707
Sale Price: $4,550,000 Lot Size: 0 SF Year Built: 1925 2 Building SF: 21,578 SF Price PSF: $210.86 Closed: 08/16/2018
6 retail stores, second floor offices & a 2-screen movie theater. ±21,324 total square feet. Building is designated as an historic landmark.
nainorcal.com 21 Sales Comparables Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
3 6330 Christie Ave Emeryville, CA 94608
Sale Price: $12,955,461 Lot Size: 5 SF Building SF: 56,000 SF 3 Price PSF: $231.35 CAP: 5.30% Closed: 11/14/2012
Portfolio of 3 Properties in Emeryville, CA Sold on Nov 14, 2012 for $65,000,000 with a CAP of 5.30% TMG and Rockwood undertook significant renovations and leasing at the property to create a thriving walkable mixed-use property that integrates working, shopping, dining and community life.
4 1410 Whyler Rd Yuba City, CA 95993
Sale Price: $12,500,000 Lot Size: 7 SF Year Built: 2008 4 Building SF: 38,934 SF Price PSF: $321.06 CAP: 6.54% Closed: 01/15/2016
This facility is newly completed in December of 2008 and has a state of the art 39,800 sq. ft. 12-plex on 6.66 acres
5 2525 Patterson Rd Riverbank, CA 95367
Sale Price: $12,000,000 Lot Size: 8 SF Year Built: 2000 5 Building SF: 56,840 SF Price PSF: $211.12 Closed: 01/07/2015
Store Capital acquired the investment asset from Galaxy Theatres, LLC. This is Galaxy 12
nainorcal.com 22 Sales Comparables Summary Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Subject Property Price Bldg SF Price/SF CAP
Regal Cinemas 337 Placerville Dr. $4,100,000 34,355 SF $119 7.10% Placerville, CA 95667
Sale Comps Price Bldg SF Price/SF CAP Close
Galaxy Porterville 9 Theatre - Porterville Plaza 1 $5,333,333 32,167 SF $165.80 - 07/02/2015 631 N Indiana St Porterville, CA 93257
1861-1877 Solano Ave 2 Berkeley, CA $4,550,000 21,578 SF $210.86 - 08/16/2018 94707
6330 Christie Ave 3 Emeryville, CA $12,955,461 56,000 SF $231.35 5.3% 11/14/2012 94608
1410 Whyler Rd Yuba City, CA $12,500,000 38,934 SF $321.06 6.54% 01/15/2016 4 95993
nainorcal.com 23 Sales Comparables Summary Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Sale Comps Price Bldg SF Price/SF CAP
2525 Patterson Rd 5 Riverbank, CA $12,000,000 56,840 SF $211.12 - 01/07/2015 95367
Price Bldg SF Price/SF CAP Close
Totals/Averages $9,467,759 41,104 SF $230.34 5.92%
nainorcal.com 24 Sales Comparables Map Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Subject Property 337 Placerville Dr. | Placerville, CA 95667
Galaxy Porterville 9 Theatre - 1861-1877 Solano Ave 6330 Christie Ave 1410 Whyler Rd 1 2 3 4 Porterville Plaza Berkeley, CA Emeryville, CA Yuba City, CA 631 N Indiana St 94707 94608 95993 Porterville, CA 93257 2525 Patterson Rd 5 Riverbank, CA 95367
nainorcal.com 25 Rent Comparables Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Subject Property 337 Placerville Dr. | Placerville, CA 95667
Lease Rate: $.70 Space Size: 34,355 Year Built: 1965 Lot Size: 130,680 SF
1 7553 Green Valley Rd Placerville, CA 95667
Lease Rate: $1.35 SF/YR Lease Type: Modified Gross Space Size: 3,200 SF 1 Year Built: 1977 Bldg Size: 3,200 SF Lot Size: 130,680 SF Lease Term: 24 months
2 2849-2885 Ray Lawyer Dr Placerville, CA 95667
Lease Rate: $1.25 SF/YR Lease Type: NNN Space Size: 2,200 SF 2 Year Built: 1983 Bldg Size: 27,000 SF Lot Size: 130,680 SF Lease Term: 60 months
nainorcal.com 26 Rent Comparables Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
3 7559 Green Valley Rd Placerville, CA 95667
Lease Rate: $1.35 SF/YR Lease Type: Modified Gross Space Size: 3,000 SF 3 Bldg Size: 3,000 SF Lot Size: 130,680 SF Lease Term: 60 months
4 4370 Golden Center Dr Placerville, CA 95667
Lease Rate: $1.50 SF/YR Lease Type: NNN Space Size: 1,900 SF 4 Year Built: 2006 Bldg Size: 8,250 SF Lot Size: 130,680 SF
5 7559 Green Valley Rd 7559 Green Valley Rd | Placerville, CA 95667
Lease Rate: $1.45 SF/YR Lease Type: Modified Gross Space Size: 1,500 SF 5 Bldg Size: 3,000 SF Lot Size: 130,680 SF Lease Term: 36 months
nainorcal.com 27 Rent Comparables Summary Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Subject Property Rent/SF SF Bldg SF
Regal Cinemas 337 Placerville Dr. $.70 34,355 SF 34,355 SF Placerville, CA 95667
Rent Comps Rent/SF SF Bldg SF
7553 Green Valley Rd 1 Placerville, CA $1.35 3,200 SF 3,200 SF 95667
2849-2885 Ray Lawyer Dr 2 Placerville, CA $1.25 2,200 SF 27,000 SF 95667
7559 Green Valley Rd 3 Placerville, CA $1.35 3,000 SF 3,000 SF 95667
4370 Golden Center Dr Placerville, CA $1.50 1,900 SF 8,250 SF 4 95667
Rent/SF SF Bldg SF
Totals/Averages $1.38 2,360 SF 8,890 SF
nainorcal.com 28 Rent Comparables Map Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Subject Property 337 Placerville Dr. | Placerville, CA 95667
7553 Green Valley Rd 2849-2885 Ray Lawyer Dr 7559 Green Valley Rd Placerville, CA Placerville, CA Placerville, CA 95667 95667 95667 1 2 3 4370 Golden Center Dr Placerville, CA 95667 4
nainorcal.com 29 Section 6 DEMOGRAPHICS 6 Demographics Map Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Population 1 Mile 5 Miles 10 Miles Total Population 1,710 28,006 64,962 Median Age 39.9 43.1 44.5 Median Age (Male) 35.8 40.7 42.9 Median Age (Female) 42.7 44.2 45.3 Households & Income 1 Mile 5 Miles 10 Miles Total Households 666 10,858 25,049 # of Persons Per HH 2.6 2.6 2.6 Average HH Income $65,895 $71,677 $79,976 Average House Value $375,265 $420,526 Race 1 Mile 5 Miles 10 Miles % White 78.7% 87.2% 90.1% % Black 1.2% 0.9% 0.6% % Asian 0.8% 1.2% 1.4% % Hawaiian 0.5% 0.3% 0.3% % Indian 2.4% 2.2% 1.5% % Other 11.8% 5.3% 3.5% Ethnicity 1 Mile 5 Miles 10 Miles % Hispanic 24.6% 14.1% 11.3% * Demographic data derived from 2010 US Census
nainorcal.com 31 Regal Cinemas 337 Placerville Dr., Placerville, CA 95667
Mary Alam, MBA Ganga Balebail Senior Vice President Investment Advisor O: 415.358.2111 O: 415.534.0110 M: 415.297.5586 M: 510.862.4612 [email protected] [email protected] CalDRE #01927340 CalDRE #02015344