OFFERING MEMORANDUM W. 6th Street Corona, CA OFFERED BY:

Transcription

1 OFFERING MEMORANDUM W. 6th Street Corona, CA OFFERED BY: NICK WIRICK Sr. Vice President DRE License # LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICE, INC. -RIVERSDE 3240 MISSION INN AVE RIVERSIDE, CA CORP ID#

2 HIGHLIGHTS SYNOPSIS Lee & Associates is proud to offer this outstanding six-tenant, anchored by Harbor Freight Tools, net leased investment opportunity. The property features a ten (10) year corporate lease with Harbor Freight Tools, is recently renovated with a complete primary term. The property is also well positioned at the 6th Street exit of the 91 Freeway in Corona, CA - one of the city s newest off ramps and major thorough fair in the trade area. With it s premier credit tenancy, prime location, and new, quality renovation, this property offers investors the ideal opportunity to own a newly renovated, stable, easy to manage, net leased investment. PROPERTY ATTRIBUTES Newly renovated ±27,082 SF building located on a 2.88 acre land parcel The Harbor Freight Tools lease is a ten (10) year lease expiring in 2024 with three five-year options Harbor Freight Tools has over 500 stores nation wide Seasoned shop tenants, most have been at this location for over ten years Ease of management with only six tenants LOCATION HIGHLIGHTS A new freeway interchange under construction, puts the center at the freeway on and off ramps 6th Street is served with on and off ramps to the CA-91 freeway with a daily average traffic count of 257,000 cars per day Densely populated and seasoned neighborhood Traffic counts estimated at 23,400 CPD on 6th St and 10,186 CPD on Paseo Grande (2011 MPSI) RECENT CONSTRUCTION UPGRADES: Gravel overlay parking lot Curb and gutter on and off-site Landscaping Irrigation system Facade Roof New transformer Fire sprinkler system All public improvements are 100% up to date ADA Requirements Sewer connection to main line INVESTMENT SUMMARY LIST PRICE: $9,250,000 ASKING PRICE: $9,250,000 PRICE PER FOOT (bldg.): $342/SF CAP RATE: 5.57% TOTAL BUILDING SIZE: 27,082 SF LAND AREA: ±2.88 Acres YEAR BUILT: 1978 (2014 Renovation) CURRENT NOI: $516,023

3 PRICING SUMMARY SUMMARY PRICING SUMMARY PROPERTY SPECIFICATIONS PURCHASE PRICE: $9,250,000 TOTAL BUILDING SIZE: 27,082 SF $342/SF LAND AREA: ±2.88 Acres CAP RATE: 5.57% YEAR BUILT: 1978 (2014 Renovation) OPERATING CASH FLOW REVENUE TOTAL PROJECTED GROSS REVENUE $595,631 EXPENSE REIMBURSEMENT $ 79,608 EFFECTIVE GROSS REVENUE $516,023 OPERATING EXPENSES CAM $20,556 INSURANCE $10,908 PROPERTY TAXES $33,744 MANAGEMENT $14,400 TOTAL OPERATING EXPENSES $79, NET OPERATING INCOME $516,022.80

4 RENT ROLL Rent Roll (Actual) Tenant Suite # Lease Lease Actual $/SF/Mon CAM Actual Rent Expire Options Sq. Ft. Annual Rent Commence Type Mo. Rent th Reimburse Commencement* Harbor Freight Tools 101 3/1/2014 2/28/2024 NNN yes 18,000 $19,800 $ 1.10 $4,409 $237,600 10/1/2015 Waba Grill 103 6/1/2014 5/31/2019 NNN yes 1,761 $5,107 $ 2.90 $431 $61,283 6/1/2015 Massage 102 9/1/2014 8/31/2019 NNN yes 770 $2,118 $ 2.75 $189 $25,410 1/1/2015 Vacant Unit 101B 700 $2,200 $ 2.75 $171 $26,400 Red Barn Liqiour 101A 9/1/2014 3/31/2021 NNN yes 1,700 $3,400 $ 2.00 $416 $40,800 7/1/2015 Smile Now Dental 100 2/1/2014 8/1/2020 NNN yes 4,151 $10,378 $ 2.50 $1,017 $124,530 2/1/ ,082 $43,002 $ , ,023

5 OPERATING STATEMENT Operating Statement - Actual Income vs. Proforma Expenses Income Per Sq. Ft. Monthly Annual Gross Rental $ 1.59 $ 43,002 $ 516,023 CAM Reimbursement $ 0.24 $ 6,634 $ 79,608 Total Gross Income $ 1.83 $ 49,636 $ 595,631 Expenses: Electricity $ 0.01 $ 295 $ 3,540 Water $ 0.02 $ 568 $ 6,816 Trash $ 0.01 $ 200 $ 2,400 Landscaping $ 0.02 $ 650 $ 7,800 Property Insurance $ 0.03 $ 909 $ 10,908 Property Taxes $ 0.10 $ 2,812 $ 33,744 Management $ 0.04 $ 1,200 $ 14,400 Total Expenses $ 0.24 $ 6, $ 79, Total NOI $ 516,022.80

6 LEASE SUMMARIES TENANT: Harbor Freight Tools TENANT: Waba Grill USE: PREMISES: SQUARE FOOTAGE: CURRENT LEASE TERM: CURRENT LEASE START/END: RENT COMMENCEMENT: BASE RENT: CAM REIMBURSEMENT: Retail Tool Store Suite 101 ±18,000 SF 10 years March 1, February 28, 2024 October 1, 2015 $19,800 per month $4,409 per month USE: PREMISES: SQUARE FOOTAGE: CURRENT LEASE TERM: CURRENT LEASE START/END: RENT COMMENCEMENT: BASE RENT: CAM REIMBURSEMENT: Restaurant Suite 103 ±1,761 SF 5 years June 1, May 31, 2019 June 1, 2015 $5,107 per month $431 per month TENANT: Massage TENANT: Red Barn Liquor USE: PREMISES: SQUARE FOOTAGE: CURRENT LEASE TERM: CURRENT LEASE START/END: RENT COMMENCEMENT: BASE RENT: CAM REIMBURSEMENT: Massage Suite 102 ±770 SF 5 years September 1, August 31, 2019 January 1, 2015 $2,118 per month $189 per month USE: PREMISES: SQUARE FOOTAGE: CURRENT LEASE TERM: CURRENT LEASE START/END: RENT COMMENCEMENT: BASE RENT: CAM REIMBURSEMENT: Liquor Store Suite 101A ±1,700 SF 7 years September 1, March 31, 2021 July 1, 2015 $3,400 per month $416 per month TENANT: Smile Now Dental TENANT: Vacant USE: PREMISES: SQUARE FOOTAGE: CURRENT LEASE TERM: CURRENT LEASE START/END: RENT COMMENCEMENT: BASE RENT: CAM REIMBURSEMENT: Dental Office Suite 100 ±4,151 SF 6 years February 1, August 1, 2020 February 1, 2014 $10,378 per month $1,017 per month USE: PREMISES: SQUARE FOOTAGE: CURRENT LEASE TERM: CURRENT LEASE START/END: RENT COMMENCEMENT: BASE RENT: CAM REIMBURSEMENT: Suite 101B ±700 SF $2,118 per month $171 per month

7 AERIAL MAP

8 STREET MAP NEW 91 FREEWAY EASTBOUND ON-RAMP NEW 91 FREEWAY WESTBOUND ON-RAMP NEW 91 FREEWAY EASTBOUND OFF-RAMP SITE

9 SITE PLAN E

10 FLOOR PLAN RED BARN LIQUOR AVAILABLE SPA

11 PARCEL MAP PROPERTY DETAILS Property Address W. 6th Street, Corona, CA Location Description Located at the southeast corner of 6th street and Paseo Grande, north of the CA-91 freeway in Corona, CA, Riverside County. Parking The property currently offers two hundred (200) parking spaces. Parcels Land Area Approximately 2.88 Acres Building Area Approximately 27,082 square feet Access Access to the property is via 2 driveways - one on 6th Street and one on Paseo Grande. Year Built Built in 1978 (2014 Renovation) SITE

12 ELEVATIONS HARBOR FREIGHT TOOLS 1750 RED BARN LIQUOR HARBOR FREIGHT TOOLS DENTISTRY & OTHODONTICS 1760 AVAILABLE CLUB TAN SPA CLEANERS 1750 HARBOR FREIGHT TOOLS HARBOR FREIGHT TOOLS 1750 DENTISTRY & OTHODONTICS 1760 RED BARN LIQUOR AVAILABLE SPA DENTISTRY & OTHODONTICS 1760 /2013 1:12:57 PM, 1:1

13 PROPERTY PHOTOS

14 MARKET PLACE PROFILE - CORONA CORONA, CALIFORNIA The City of Corona is located approximately 45 miles southeast of Los Angeles in western Riverside County. The City limits encompass 39.2 square miles and the population is approximately 153,484 people. A city whose heritage spans more than a century, Corona has emerged as an ethnically diverse community, where a significant percentage of the population is made up of young, well-educated families. In recent years Corona has been known as the Gateway to the Inland Empire. Prior to the 1980s, the city was a largely agricultural community, dominated by citrus orchards, ranches, and dairy farms. High real estate prices in Los Angeles and Orange counties made the area s land desirable to developers and industrialists, and by the late 1990s Corona was considered a major suburb of Los Angeles. Corona has become a bedroom community for Orange County, Los Angeles, and the larger cities of the Inland Empire. The development of commerce and industry in the city has been accelerated by access to the area via the Riverside Freeway CA-91, with many firms leaving northern Orange County to be closer to their employees homes in Corona and Riverside. The construction of the nearby Chino Valley Freeway CA-71has linked Corona to the Pomona and San Gabriel Valleys. Corona s industrial base has played an important role in the growth of the city and its employee base. There are more than 42,000 jobs within the city of Corona and there is a workforce of more than 82,000 people. Corona has more than 32 million square feet of industrial space and more than 3 million square feet of office space existing, under construction, or planned. Retail and commercial areas are expanding and office development is booming. TOP EMPLOYERS IN CORONA # EMPLOYER # OF EMPLOYEES 1 Corona Norca Unified School District 2,459 2 Corona Regional Medical Center 1,100 3 Kaiser Permanente City of Corona Fender Guitar All American Asphalt Actavis CIRCOR Aerospace Monster Energy TWR Framing Enterprises 465 SUMMARY PROFILE & DEMOGRAPHICS FOR CORONA DESCRIPTION 1 MILE 3 MILE 5 MILE 2014 Estimated Population 16,284 74, , Projected Population 17,181 78, , Median Age Estimated Average Household Income $57,730 $83,142 $83, Estimated Total Employees 5,841 35,108 74,306

15 MARKET PLACE PROFILE - INLAND EMPIRE INLAND EMPIRE The property is located in a Southern California region commonly known as the Inland Empire. The inland empire known as The IE, is an area approximately 60 miles from north to south, and some 50 miles wide. It spans Riverside and San Bernardino Counties, two of the largest counties in the nation, and is roughly two-thirds the size of Connecticut. The area is surrounded by mountain ranges and hills on all sides, with only a few natural passes to Los Angeles and Orange County to the West. San Diego County lies to the south and Palm Springs to the east. Major cities include San Bernardino, Riverside, and Ontario, served by the Ontario International Airport. Smaller but substantial cities include Rancho Cucamonga, Redlands, Corona, and others. The Inland Empire is home to 16 colleges and universities. Among these are the multi campus Claremont Colleges and the University of Redlands, which are consistently rated among the top private liberal arts colleges in the nation. Also included are Loma Linda University, one of the world s top research medical schools, and the University of California, Riverside, the fastest growing school in the UC system and a research center in biotechnology, environmental science, engineering and information technology. Several respected liberal arts colleges are also located within miles of the City of Corona. Cal Baptist University hosts 4,700 students and offers bachelors and masters programs. La Sierra University, located a few miles from the Property, exceeds 2,000 undergraduate and addition, there are 10 community colleges operating out of 13 campuses within in the Inland Empire. Numerous companies have their corporate operations based out of the Inland Empire. The West Coast corporate operations for Burlington Northern Santa Fe (BNSF) Railways and UPS are located in San Bernardino and Ontario, respectively. Bourns, Inc., a global manufacturer of electronic components, has its international headquarters in Riverside, Ontario hosts the corporate headquarters of Apex Digital and Specialty Brands, while Redlands is the world center for ESRI geographic information systems. In Corona you can find the West Coast offices for Fender Guitar and Hansen Beverage Company. Travel into and around the Inland Empire is facilitated by a large network of interstates and state highways. There are four major interstates running through the region, including the I-10, I-15 and I-215 Freeways. In addition, there are numerous state highways such as the CA-91 traveling from of Orange County. Access from outside, as well as within the region is also available via the Metrolink network of commuter trains that connect with Amtrak lines at Union & Arctic station in Los Angeles and Orange counties. The Ontario International Airport offers convenient air transportation into the region. The future growth and development of the Inland Empire is based on continued population growth. In 2007 the IE exceeded the 1,000,000 job threshold which was considered to be a major landmark in the development of the IE. With over 4.2 million people today, the IE is considered to be the most significant population growth center in Southern California.