26051 La Paz Road, Mission Viejo, CA OFFERING MEMORANDUM

Transcription

1 26051 La Paz Road, Mission Viejo, CA OFFERING MEMORANDUM

2 Craig Stewart Principal # William Anderson, MBA Principal # EXCLUSIVELY REPRESENTED BY 2

3 ACRE Investment Real Estate Services is proud to exclusively market for sale, the La Paz Gateway Retail Center, located in Mission Viejo, California. Mission Viejo is one of Orange County s most highly desired coastal neighborhoods due to its close proximity to a wide range of popular areas. The Property is a prime, Class-A, three-tenant retail building ideally located at the intersection of La Paz Road and Muirlands Blvd, just off CA Interstate 5. Built in 2009, the Property includes 6,828 square feet of retail space on a 26,000 square foot parcel. La Paz Gateway Retail Center combines an irreplaceable location with a strong average daily traffic count of 52,000 vehicles. The Property is 100% occupied with established retail tenants - Ortho, Beach Hut Deli, and Ronaldo s Taco Shop, each with NNN leases. Each tenant has signed longterm leases and completely reimburses the landlord for all expenses. Further, Ortho and Ronaldo s has recently renewed their leases for an additional 5 and 10 years, respectivley. It should be noted that there are no HOA s or CC&R s. Further property features include: over 30 parking spots for retail customers and employees, two separate entry/exit ways onto La Paz and Muirlands Blvd, located on a 4-way signalized corner and among other national retail and office tenants. The interior shell is divisible and metered for 8 separate spaces, but is currently configured as three spaces. The second story of the Property has an 800-square foot shell that can be built out as office space, however, there is currently no exterior stairway to this space. INVESTMENT HIGHLIGHTS VISIBLE FROM INTERSTATE 5 FREEWAY CONSTRUCTED IN LONG-TERM TENANTS WITH MARKET-RATE NNN LEASES OUTSTANDING ASSUMABLE DEBT - $2,800,000 BALANCE, 4.38% INTEREST ONLY, DUE IN 2025 AVERAGE DAILY TRAFFIC COUNT - 52,000 VEHICLES LA PAZ ROAD: 38,000 VEHICLES / DAY MUIRLANDS BOULEVARD: 13,000 VEHICLES / DAY I-5: 325,000 VEHICLES / DAY BUSY INTERSECTION AT THE OFFRAMP 800 ADDITIONAL SQUARE FEET IN 2ND FLOOR CAN BE USED FOR OFFICE SPACE BUILDING IS DIVISIBLE INTO 8 TOTAL SPACES AMPLE CUSTOMER PARKING NO CC&RS OR HOA S This Offering comes with attractive assumable debt of $2,800,000 balance, with an interest rate of 4.38% Interest Only and due in The La Paz Gateway Retail center offers an acute investor a solid, Class-A multi-tenant NNN retail investment in one of Orange County s most desirable coastal neighborhoods. THE OFFERING 3

4 Mission Viejo, south Orange County s largest city, has an outstanding quality of life for its residents, businesses and visitors. Mission Viejo is consistently recognized as one of the safest cities in California, compared to cities of similar size. Mission Viejo is a business-friendly, master-planned community with outstanding schools, and a talented, well-educated work force. Mission Viejo is conveniently located between San Diego and Los Angeles counties, adjacent to both Interstate 5 and State Route 241 (Foothill Toll Road). The nearby Laguna Niguel/Mission Viejo Station provides both Metrolink & Amtrak service; the Irvine Transportation Center is about 5 minutes north of Mission Viejo, and the John Wayne Airport is about 16 miles north of the City via Interstate 405. The City of Mission Viejo always offers fast-tracked permit processing, no businesses license fees, no gross receipts taxes, no utility user fees, no per employee fees and there is a talented staff to serve you. Disneyland is about located about 25 miles away, Legoland (in north San Diego County) is about 40 miles away, and it s only 12 miles to the beach. Mission Viejo has three hotels to serve our visitors: Ayres Suites, Ayres Hotel & Spa, and the Fairfield Inn. A 101-room Hampton Inn & Suites is under construction and a late 2016 opening is anticipated. Mission Viejo is a master planned community with a beautiful lake that is located in South Orange County, between San Diego and Los Angeles. The John Wayne Airport is 20 minutes away and the nearby Mission Viejo/Laguna Niguel Metrolink Station offers access to Amtrak and commuter rail services. Mission Viejo is one of safest cities in California and it is consistently ranked one of the top 15 in the nation. This community is home to the Mission Viejo Nadadores swim and dive program, Mission Hospital, Saddleback College, and many distinguished K-12 schools. The City has a $74 million budget and it maintains a significant reserve fund. The City provides outstanding municipal services, where 99% of the residents report the quality of life is great. Mission Viejo continues to welcome many new businesses and these are some of the ones that opened recently: Ultimate HD Golf, PlayLive Nation, seven new businesses inside Union Market Mission Viejo at Kaleidoscope, and The Shops at Mission Viejo added Fabletics, Mica Beauty Cosmetics, and Champs Sports. New Mission Viejo eateries include: Island s Fine Burgers & Drinks, Burger Boss, Tacos Cancun, Anchor Hitch, Oyu Shabu, Diced, Hummus Bowl, Dry Society, Milkbox, the Portola Coffee Roasters, Tropical Smoothie Cafe, and The Melt. These new eateries will be coming soon: Oggi s Pizza and Brewing Company, Savour Cafe & Bakery, Poke Wave, Panini Cafe, MJ Cafe, RTE, and Menchie s. These new developments have been already been approved by the City of Mission Viejo: 101-room Hampton Inn and Suites, Orchard Supply Hardware store, GreenStreet (a new 17,000 square foot commercial center), Mission Viejo Medical Center (a 108,000 sq. ft. medical office building), Popeye s Louisiana Kitchen, and a renovation/expansion of the commercial center on Crown Valley where Coco s restaurant is presently located. LOCATION OVERVIEW 4

5 LA PAZ ROAD CHRISANTA DRIVE LA PAZ ROAD MUIRLANDS ROAD CABOT ROAD AERIAL LOCATION MAP 5

6 PROPERTY PHOTOS 6

7 PROPERTY PHOTOS 7

8 5 325,000 Vehicles Per Day La Paz Road 38,000 Vehicles Per Day Muirlands Blvd. 13,000 Vehicles Per Day SITE OVERVIEW 8

9 NAME: La Paz Gateway UTILITIES ADDRESS: La Paz Road, Mission Viejo CA WATER: Tenant APN: SEWER: Tenant NUMBER OF UNITS: 3 (8 Possible) TRASH: Tenant NUMBER OF BUILDINGS: 1 GAS & ELECTRIC: Tenant NUMBER OF STORIES: RSF: LOT SIZE: TYPE OF OWNERSHIP: DENSITY: PARKING: PARKING SPACES: 2 6,828 SF 26,000 SF Fee Simple Medium Open 36 Spaces PROPERTY DESCRIPTION 9

10 ACQUISITION COSTS INCOME, EXPENSES & CASH FLOW PURCHASE PRICE: $7,000,000 GROSS SCHEDULED INCOME: $323,216 INVESTMENT - CASH: $4,200,000 NET OPERATING INCOME: $323,216 FIRST LOAN: $2,800,000 DEBT SERVICE: ($186,504) CASH FLOW BEFORE TAXES: $136,712 INVESTMENT INFORMATION FINANCIAL INDICATORS PRICE PER SQ. FT.: $1,025 CASH ON CASH RETURN BEFORE TAXES: 3.25% INCOME PER UNIT: $107,739 DEBT COVERAGE RATIO: 1.73 EXPENSES PER UNIT: $0 CAP RATE: 4.62% GROSS INCOME/ SQUARE FEET: $47.34 EXECUTIVE SUMMARY 10

11 ORTHO MATTRESS Ortho Mattress has been providing great bedding products and first-rate service to Los Angeles & Southern California for many years. Through the over 65 locations, they offer an unparalleled array of top-quality mattresses, ranging from the best national brands to our Dr. Preferred and Summerhill & Bischop collection of mattresses to the Ortho Avant Modern Memory Foam mattresses. Many of the mattresses are manufactured in their factory so customers can rest assured on the excellence of their products. Their relentless quest for quality includes customer service. Their knowledgeable sales staff will patiently educate a buyer through the purchase decision. Their delivery department will arrange for prompt delivery, often on the same day of sale. BEACH HUT DELI In 1981, Troy Feist set out to create a food service concept that his family (Ohana) and friends would enjoy. Being a lover of the beach, Troy s vision was to develop a restaurant which embodied a beach resort culture. He wanted to serve food that he was proud of, with craft beers on draft while listening to music he loved. How could that miss? Now, for over 35 years, Beach Hut Deli has been serving the most amazing sandwiches, unique salads and craft beers all in an environment unlike any other. Beach Hut Deli currently has over 50 locations in California, Oregon and Nevada. RONALDO S TACO SHOP Samuel Aguilar and Veronica Gutierrez managed this location for the Roberto s Taco Shop chain for the last 8 years. They recently acquired this location from Roberto s and they have continued to offer authentic, quality Mexican food at great prices. They have a very loyal customer base and they are open for breakfast, lunch and dinner. TENANT DESCRIPTIONS 11

12 CURRENT RENT ROLL Tenant # of Units SF Total SF Current Rent Rent/ SF Total Rent Start Date End Date Rental Suite Beach Hut Deli 1 1,815 SF 1,815 SF $7,704 $4.24 $7,704 07/19/ /13/2019 Rental Suite Ortho Mattress 1 2,674 SF 2,674 SF $11,980 $4.48 $11,980 08/24/ /23/2023 Rental Suite Ronaldo s Tacos 1 1,539 SF 1,539 SF $7,251 $4.71 $7,251 08/01/ /31/2027 TOTALS/WTD. AVERAGES 3 2,009 SF 6,028 SF $8,978 $4.60 $26,935 RENT ROLL - CURRENT 12

13 PRO FORMA RENT ROLL Tenant # of Units SF Total SF Current Rent Rent/ SF Total Rent Start Date End Date Rental Suite Beach Hut Deli 1 1,815 SF 1,815 SF $7,858 $4.33 $7,858 07/19/ /13/2019 Rental Suite Ortho Mattress 1 2,674 SF 2,674 SF $12,033 $4.50 $12,033 08/24/ /23/2023 Rental Suite Ronaldo s Tacos 1 1,539 SF 1,539 SF $12,033 $4.85 $12,033 08/01/ /31/2027 TOTALS/WTD. AVERAGES 3 2,009 SF 6,028 SF $9,120 $4.68 $27,360 RENT ROLL - PRO FORMA 13

14 26051 La Paz Road, Mission Viejo, CA 92691