A NEW CONSTRUCTION SIGNALIZED CORNER 100% OCCUPIED NNN SHOPPING CENTER WITH A STABLE MIX OF NATIONAL AND LOCAL TENANTS INVESTMENT ADVISORS BRANDON MICHAELS Senior Managing Director of Investments Senior Director, National Retail Group Tel: (818) 212-2794 Fax: (818) 212-2710 [email protected] License: CA #01434685 www.BrandonMichaelsGroup.com JOSEPH KHOSHSIMA The Real Estate Agency Commercial & Industrial Vice President Tel: (213) 675-9775 [email protected] License: CA #01739843 BRANDON MICHAELS GROUP SOUTHERN CALIFORNIA'S PREMIER SALES TEAM 16830 Ventura Blvd. Suite 100, Encino, CA 91436 www.marcusmillichap.com 1 PROPERTY OVERVIEW 2 FINANCIAL ANALYSIS 3 COMPARABLE ANALYSIS 4 AREA OVERVIEW LOS ANGLELES South Gate Park 93 Acre Park Within FOOD MART Walking Distance to the Property PINEHURST AVENUE TWEEDY BOULEVARD COMING SOON New/Approved Mixed-use Development ATLANTIC AVENUE 4 5 A NEW CONSTRUCTION SIGNALIZED CORNER 100% OCCUPIED NNN SHOPPING CENTER WITH A STABLE MIX OF NATIONAL AND LOCAL TENANTS Marcus & Millichap has been selected to exclusively market for sale Tweedy Atlantic Plaza, a 20,248 square foot shopping center built in 2014 and home to a stable and seasoned mix of national and local retailers that ideally serve the dense immediate population. Tweedy Atlantic Plaza is ideally located on the Southeast signalized corner of Atlantic Avenue and Tweedy Boulevard, directly across from a significant development site and within close proximity to the Interstate 710 Long Beach Freeway. The center sits on 1.01 acres of land (43,996 square feet), and is surrounded by dense single family residential dwellings, multi-family units, schools, and parks. Tweedy Atlantic Plaza is one hundred percent occupied, with a majority of the current tenant base successfully operating from this center since its inception. The tenants benefit from ideal unit sizes, excellent visibility from both Atlantic Avenue and Tweedy Boulevard, and exceptional ingress and egress from both Atlantic Avenue and Tweedy Boulevard. All tenants are on NNN leases, creating a stable and secure income stream with minimal landlord responsibilities. The interior and exterior of the center was completely renovated in 2014, with millions being invested into the site. In addition, a number of tenants invested significant capital into their individual units. Smile Brands, the largest tenant, invested approximate $1.6 million into significant tenant improvements inside their unit. Established tenant Winchell’s Donuts invested approximate $500,000, and Baskin Robbins invested over $250,000. This well stabilized center benefits from significant upgrades and improvements and creates a business friendly environment with excellent cross-over shopping options. All tenants are NNN leases with separate electrical meters. There are approximate 950,000 people within a five mile radius of the center, and an average household income of approximate $55,000. Directly across the street on the Southwest signalized corner of Atlantic Avenue and Tweedy Boulevard sits 3.84 acres of land fully entitled for 91 residential units of approximately 73,888 square feet, and approximately 39,482 square feet of commercial space. In addition, the site is across the street to South Gate Park, a 93 acre park that commands approximate 5,000 people per day. 6 LONG BEACH FREEWAY LOS ANGELES RIVER TWEEDY BOULEVARD ATLANTIC AVENUE 7 INVESTMENT HIGHLIGHTS STABLE AND SECURE 100% OCCUPIED SHOPPING CENTER ◆ Home to a strong mix of national and local tenants that ideally serve the dense immediate population ◆ Complete interior and exterior renovation in 2014 – Over $2.5 million invested ◆ NNN leases with annual rental increase ◆ 1.01 acres of land ◆ Excellent visibility, ingress and egress EXCELLENT TENANT BASE ◆ A majority of the current tenant base has successfully operated at this location for over 5 years ◆ A number of tenants have invested significant capital into their units, further stabilizing the asset and creating high end units and a positive business environment ◆ Ideal mix of national and local tenants create excellent cross-over shopping options and drive traffic at the center EXCELLENT SOUTH GATE LOCATION ◆ SE signalized corner of Atlantic Avenue and Tweedy Boulevard ◆ Strong daily traffic counts north of 25,000 vehicles per day ◆ Excellent access to the Interstate 710 Long Beach Fwy and 105 Fwy ◆ Directly located across from a proposed 91 unit residential development site ◆ Within close proximity to downtown Los Angeles, all major freeways, and Los Angeles International Airport ◆ Legacy High School, a 40 acre school campus with approximately 11,500 students, is just located north of the center DENSE LOS ANGELES COUNTY SUB-MARKET ◆ Over 950,000 people within a five mile radius ATLANTIC AVENUE ◆ Directly across from a 93 acre park that commands 5,000 visitors per day ◆ Significant growth projections and new developments in the immediate and surrounding areas 8 TWEEDY BOULEVARD ATLANTIC AVENUE 9 PROPERTY OVERVIEW FINANCIAL INFORMATION PRICE $7,495,000 PRICE/SF $370 PRICE/SF (LAND) $172 CURRENT CAP RATE 6.43% PROPERTY INFORMATION CURRENT NOI $482,192 Tweedy Atlantic Plaza 9918 - 9934 Atlantic Avenue ADDRESS LEASE TYPE NNN & 5120 Tweedy Boulevard South Gate, CA 90280 BUILDING SF 20,248 SUMMARY OF TERMS D R LAND SF 43,556 A V Interest Offered: E L CURRENT OCCUPANCY 100% 100% fee simple interest in 9918 - 9934 Atlantic Avenue & U O 5120 Tweedy Boulevard, a 20,248 SF of retail strip center in B ZONING SGM2* DY South Gate, CA 90280 EE TW APN NUMBER 6221-011-038 Terms of the Sale: YEAR BUILT/RENOVATED 1948/2015 Property is being offered on a free and clear basis. Over $2.5 Million 2015 RENOVATIONS Invested Into Center Property Tours: Prospective purchases are encouraged to visit the site and PROPERTY TYPE Retail review all due diligence materials prior to submitting offers. Access to an outline due diligence is available portal. All TYPE OF OWNERSHIP Fee Simple property tours must be coordinated through the listing team. 10 RD VA ULE Y BO TWEED ATLANTIC AVENUE 11 WRIGHT ROAD TWEEDY BOULEVARD 12 PROPERTY DETAILS WRIGHT ROAD ADDRESS 9918 - 9934 Atlantic Avenue & 5120 Tweedy Boulevard South Gate, CA 90280 SITE The Tweedy Atlantic Plaza is located on the Northwest signalized 26,630 Traffic Volume Counts of 26,630 corner of Atlantic Avenue and Tweedy Boulevard. on Atlantic Ave and Tweedy Blvd SQUARE FOOTAGES The total building square footage is approximately 20,248 square feet. The total land square footage is approximately 43,556 square feet. CROSS STREETS The cross streets are Atlantic Avenue (North/South) and Tweedy ATLANTIC AVENUE Boulevard (East/West). 44 44 Surface Spaces TRAFFIC COUNTS Ratio of 2.17/1,000 SF The traffic counts at the signalized corner of Atlantic Avenue and Tweedy Boulevard are 26,630 vehicles per day. PARKING The property offers 44 total parking spaces, a parking ratio of 2.17 per 1,000 SF. ZONING The zoning is SGM2*. 100% 100% Occupied NNN APN NUMBER Leases The APN number is 6221-011-038. 13 RENT ROLL SF DELIVERY OF CURRENT LEASE MONTHLY ANNUAL MONTHLY UNIT TENANT SF % TERM RENT/SF CAM/SF ANNUAL CAM GROUND 2ND POSSESION TERM RENT RENT CAM OPTIONS RENT INCREASE FLOOR FLOOR 9918 Bright Now Dental 5,318 26% 10 Years 9/5/2014 6/1/15 - 5/31/25 $14,966.57 $2.81 $179,598.84 $1,861.30 $0.35 $22,335.60 2 5-Years Annual Base Rent increase of 2% over previous year on Anniversary of Lease Date 9922 Winchell's Donuts 1,650 8% 10 Years 10/23/2014 3/1/15 - 2/28/25 $4,779.51 $2.90 $57,354.12 $577.50 $0.35 $6,930.00 2 5-Years Annual Base Rent increase of 2.25% over previous year on Anniversary of Lease Date 9934 Tessie Cleveland 1,160 6% 3 Years 6/26/2015 8/1/15 - 7/31/21 $2,510.11 $2.16 $30,121.32 $406.00 $0.35 $4,872.00 Annual Base Rent increase of 3.00% over previous year on the Anniversary of Lease Date "Mthly for 1 to 14 = $2,610.00+NNN Mthly for 15 to 26 = $2,691.20+NNN Mthly for 27 to 38 = $2,772.40+NNN Option 1 - Yr 1 - Mthly = $2,885.57+NNN 9932 Cricket Wireless 1,160 6% 3 Years 8/24/2018 8/23/18 - 8/22/21 $2,610.00 $2.25 $31,320.00 $406.00 $0.35 $4,872.00 2 3-Years Option 1 - Yr 2 - Mthly = $2,941.24+NNN Option 1 - Yr 3 - Mthly = $3,029.48+NNN Option 2 - Yr 1 - Mthly = $3,120.36+NNN Option 2 - Yr 2 - Mthly = $3,213.97+NNN Option 2 - Yr 3 - Mthly = $3,310.39+NNN Option Period: One - Monthly rent of $3,004.04 9930 Baskin & Robbins 1,160 6% 5 Years 6/17/2015 9/15/15 - 9/14/20 $2,726.00 $2.35 $32,712.00 $406.00 $0.35 $4,872.00 3 5-Years Two - Monthly rent of $3,294.40 Three - Monthly rent of $3,619.20 9928 FasTrak Insurance 1,160 6% 3 Years 10/14/2016 10/15/16 - 10/14/19 $2,466.00 $2.13 $29,592.00 $406.00 $0.35 $4,872.00 1 3-Years Annual Base Rent increase of 3.00% over previous year on the Anniversary of Lease Date Yr 1 - Mthly for 1 to 6 = $1,887.50+NNN Yr 1 - Mthly for 7 to 12 = $2,887.50+NNN Yr 2 - Mthly = $2,887.50+NNN 9924/ Shear Beauty Salon & 1,750 9% 3 Years 5/1/2018 6/1/18 - 5/31/21 $2,887.50 $1.65 $34,650.00 $612.50 $0.35 $7,350.00 1 3-Years Yr 3 - Mthly = $2,974.00+NNN 9926 Barber Option 1 - Yr 1 - Mthly = $3,063.34+NNN Option 1 - Yr 2 - Mthly = $3,155.24+NNN Option 1 - Yr 3 - Mthly = $3,249.90+NNn Annual Base Rent increase of 3.00% over previous year on the 4th Year Anniversary of Lease 5120-A Javidani Clothing 450 1,400 9% 5 Years 4/1/2015 4/1/15 - 3/31/20 $2,312.00 $1.25 $27,744.00 $647.50 $0.35 $7,770.00 2 3-Years Date Year 3 = $ 5,122/Mth + NNN 5 Years and 5120-B Jumper's Jungle 5,040 25% 4/1/2013 9/22/17 - 12/21/22 $4,925.00 $0.98 $59,100.00 $1,764.00 $0.35