INVESTMENT OPPORTUNITY LITTLE CAESARS NEW BTS CONSTRUCTION | CORPORATE GUARANTEE PICO RIVERA CA (LOS ANGELES COUNTY) Representative Photo OFFERED AT: $1,192,900 | 5% CAP EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW TABLE OF CONTENTS EXECUTIVE SUMMARY 4 Executive Summary 5 Investment Highlights 6 Lease Summary & Rent Overview 7 Lease Abstract PROPERTY INFORMATION 9 Location Maps 10 Site Plan 11 Aerials TENANT OVERVIEW 17 About Little Caesar’s AREA OVERVIEW 19 Pico Rivera Overview 20 Los Angeles County Overview 21 Demographics Confidentiality Agreement & Disclosures EXCLUSIVELY REPRESENTED BY RYAN BARR | Principal RYAN BENNETT | Principal 760.448.2446 760.448.2449 [email protected] [email protected] CA DRE Lic#01338994 CA DRE Lic#01826517 Color Scheme RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47 RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65 Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT Representative Photo LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 2 EXECUTIVE SUMMARY LITTLE CAESARS PICO RIVERA, CA LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 3 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW • Offering Summary • Investment Highlights Lease Summary & Rent Schedule Lease Abstract -- OFFERING SUMMARY -- INVESTMENT HIGHLIGHTS Offering Price: $1,192,900 Net Operating Income: $59,645 Cap Rate: 5% Price/SF: $952 Lease Type: NN Lease Commencement: November 1, 2018 (Estimated) PROPERTY OVERVIEW Address: 9209 Telegraph Rd Pico Rivera, CA Property Size: Approx 1,252 Sq. Ft. Land Size: 0.16 Acre Ownership: Fee Simple Year Built: 2018 Lee & Associates is pleased to exclusively offer for sale the fee simple interest (land & building) in a retail investment property leased to Little Caesar’s located in Pico Rivera, in Los Angeles County, California (the “Property”). The build to suit property is currently under construction and will consist of a 1,252-square-foot retail building with a drive-thru that sits on an approximately 0.16-acre parcel. The subject property is leased to Little Caesar Enterprises, Inc., dba Little Caesar’s, the third-largest pizza chain in the United States, behind Pizza Hut and Domino’s Pizza. The company operates and franchises 5,463 pizza restaurants in the United States and internationally in Asia, the Middle East, Australia, Canada, Latin America and the Caribbean. The new 5-year net lease is expected to commence in November 2018, and features 10% rent increases in the (4) 5-year option periods. The net lease requires minimal landlord responsibilties, offering an investor a passive income stream with solid rent growth. The subject property is situated on a hard corner signalized intersection along Telegraph Rd, offering outstanding signage and visibility to 26,000+ cars per day. Telegraph Rd is a major retail/commuter corridor in the area, offering quick access to Interstate 5 just a few blocks from the site. Additionally, the property is located in a dense infill location, with nearly 62,000 households within a 3-mile radius of the site. Little Caesar’s is located in Pico Rivera, a city in Los Angeles County, California only 11 miles southeast of downtown Los Angeles. Pico Rivera is a thriving community that offers opportunities to all who live and work in the City and is home to a balanced mix of homes, businesses and recreational facilities. Industrial and commercial uses are attracted to Pico Rivera, thanks in large part to the easy access provided by three freeways - Interstate 605 (San Gabriel Freeway), Interstate 5 (Santa Ana Freeway) and Interstate 60 (Pomona Freeway). The City of Pico Rivera was awarded the “Most Business-Friendly City in Los Angeles County” in 2016, reflecting its commitment to economic development, excellence in programs and services to facilitate business entry, expansion and retention, and availability of economic incentives for area businesses. It is the home of the US Corporate Headquarters for Aurora World (toys) and BakeMark (bakery ingredients), as well as top employers Bimbo Bakeries, Cintas and Southern California Material Handling. The Water Replenishment District of Southern California recently completed a $110 million water recycling plant in Pico Rivera, built by J.F. Shea Construction, a Walnut-based developer. The plant is a giant step for Los Angeles County, which will no longer Representative Photo of Interior need water pumped from Northern California or the Colorado River in order to serve its 4 million customers. LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary • Investment Highlights • Lease Summary & Rent Schedule Lease Abstract -- INVESTMENT HIGHLIGHTS -- DESIRABLE NATIONAL TENANT: LITTLE CAESAR’S • 3RD LARGEST PIZZA CHAIN IN THE UNITED STATES • NEW BUILD TO SUIT CONSTRUCTION • DRIVE THRU The subject property is leased to Little Caesar Enterprises, Inc., dba Little Caesar’s,the third-largest pizza chain in the United States, behind Pizza Hut and Domino’s Pizza. The company operates and franchises 5,463 pizza restaurants in the United States and internationally in Asia, the Middle East, Australia, Canada, Latin America and the Caribbean. The new building is currently under construction and features a drive-thru lane. NEW 5-YEAR NET LEASE • MINIMAL LANDLORD RESPONSIBILITIES • RENT GROWTH The new 5-year net lease is expected to commence in November 2018, and features 10% rent increases in the (4) 5-year option periods. The net lease requires minimal landlord responsibilties, offering an investor a passive income stream with solid rent growth. HARD CORNER SIGNALIZED INTERSECTION • MAJOR COMMUTER CORRIDOR • DENSE INFILL LOCATION The subject property is situated on a hard corner signalized intersection along Telegraph Rd, offering outstanding signage and visibility to 26,000+ cars per day. Telegraph Rd is a major commuter corridor in the area, offering quick access to Interstate 5 just a few blocks from the site. Additionally, the property is located in a dense infill location, with nearly 62,000 households within a 3-mile radius of the site. LOCATED IN CITY OF PICO RIVERA • MINUTES FROM DOWNTOWN LOS ANGELES • BUSINESS-FRIENDLY CITY The subject property is located in Pico Rivera, a city in Los Angeles County, California only 11 miles southeast of downtown Los Angeles. Pico Rivera is a thriving community that is home to a balanced mix of homes, businesses and recreational facilities. The City of Pico Rivera was awarded the “Most Business-Friendly City in Los Angeles County” in 2016, reflecting its commitment to economic development, excellence in programs and services to facilitate business entry, expansion and retention, and availability of economic incentives for area businesses. It is the home of the US Corporate Headquarters for Aurora World (toys) and BakeMark (bakery ingredients), as well as top employers Bimbo Bakeries, Cintas and Southern California Material Handling. REVITALIZED CITY • NEW SHOPPING & COMMUNITY DEVELOPMENT • SITE OF NEW $110-MILLION WATER TREATMENT PLANT There has been significant redevelopment in the city, with the opening of the Pico Rivera Towne Center, a 60-acre open-air shopping complex; Pico Crossing, a 2.79-acre shopping center; and, the Pico Rivera Village Walk, a $22 million, 12-acre shopping center located at the southwest corner of Whittier and Paramount boulevards. The Water Replenishment District of Southern California recently completed a $110 million water recycling plant in Pico Rivera, built by J.F. Shea Construction, a Walnut-based developer. The plant is a giant step for Los Angeles County, which will no longer need water pumped from Northern California or the Colorado River in order to serve its 4 million customers. LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary Investment Highlights • Lease Summary & Rent Schedule • Lease Abstract -- LEASE SUMMARY -- LEASE INFORMATION TENANT: Little Caesar Enterprises, Inc. dba Little Caesar’s GUARANTOR: Corporate BUILDING SIZE: 1,252 Sq. Ft. LOT SIZE: 0.16 Acre RENT COMMENCEMENT (Estimated): November 1, 2018 LEASE EXPIRATION: October 31, 2023 BASE LEASE TERM: 5 Years RENEWAL OPTIONS: (4) 5-Year Options LEASE TYPE: NN LANDLORD RESPONSIBILITIES: Roof & Structure RENT INCREASES: 10% Increases in Each Option Period ANNUAL RENT: $59,645.28 -- RENT SCHEDULE -- RENT SCHEDULE TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR Years 1 - 5 11/1/2018 10/31/2023 $59,645.28 $4,970.44 $47.64 OPTION PERIODS - (4) 5-Year Options TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR Option 1 11/1/2023 10/31/2028 $65,609.76 $5,467.48 $52.40 Option 2 11/1/2028 10/31/2033 $72,170.76 $6,014.23 $57.64 Option 3 11/1/2033 10/31/2038 $79,387.80 $6,615.65 $63.41 Option 4 11/1/2038 10/31/2043 $87,326.64 $7,277.22 $69.75 LITTLE CAESAR’S | Pico Rivera, CA (Los Angeles County) | 6 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary Investment Highlights Lease Summary & Rent Schedule • Lease Abstract • -- LEASE ABSTRACT -- Tenant agrees to pay Landlord all taxes (“Taxes”) levied and assessed during the term of t his Lease upon the Parcel. Tenant shall pay one-twelfth (I/12th) of the amount estimated by Landlord to the Tenant’s share of Property Taxes: the Property Taxes with each monthly installment of minimum annual rent due hereunder. Tenant shall in all events look to Landlord