OFFERING MEMORANDUM NNN 7-ELEVEN WITH CHASE ATM SIGNIFICANT UPSIDE NO LANDLORD MANAGEMENT RESPONSIBILITY NOW OPEN!

Transcription

1 OFFERING MEMORANDUM NOW OPEN! NNN 7-EEVEN WITH CHASE ATM SIGNIFICANT UPSIDE NO ANDORD MANAGEMENT RESPONSIBIITY 7 - E E V E N / C H A S E SEC ARROW BOUEVARD & NUE - FONTANA, CA CORPORATE ID # JEFF STANEY Sr. Vice President jstanley@lee-associates.com DRE icense # NICK WIRICK Sr. Vice President nwirick@lee-associates.com DRE icense #

2 C ARROW BVD TABE OF CONTENTS SECTION I - INVESTMENT OVERVIEW Pricing Summary Investment Highlights andlord Initials Tenant Initials C ROSENA AVE 7-11 STORE SUITE 'B' 2,800 SF 1,000 SF EECTRIC VEHICE CHARGING STATION 10 PREMISES PARKING AREA EXCUSIVE C AEY SITE 7 DRIVE-UP ATM C SECTION II - PROPERTY OCATION Area Overview Aerial Overview SECTION III - PROPERTY DESCRIPTION Property Details Parcel Map Color Rendering Site Plan SECTION IV - TENANT PROFIE Tenant Profiles & ease Abstracts SECTION V - RENT RO & FINANCIAS Rent Roll Summary & Financial Analysis EXHIBIT B-1 SITE PAN 3 MONUMENT SIGN ARROW BVD November 14, 2013 OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA No warranty or representation has been made as to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.

3 MONUMENT SIGN PREMISES EECTRIC VEHICE CHARGING STATION INVESTMENT OVERVIEW : 3 SYNOPSIS ee & Associates is proud to offer this no management multi-tenant asset, leased investment opportunity. Featuring a rare 10-year corporate lease with 7-Eleven Inc. and a 5-year lease with Chase Bank (Drive-up ATM), the property is newly built with a complete primary term. The lease up of 1,000 SF of vacant space will provide genuine upside potential on this investment. The property is also well positioned at the hard corner of Arrow Blvd and Juniper Ave in Fontana, CA - a busy, signalized intersection, and major thoroughfare in the trade area. With it s premier credit tenancy, prime location, and new, quality construction, this property offers investors the ideal opportunity to own a brand new, stable, easy to manage, net leased investment. ARROW BVD C ARROW BVD EXHIBIT B-1 SITE PAN INVESTMENT SUMMARY ASKING PRICE: $2,448,000 PRICE PER FOOT (BDG): $ /SF C C DRIVE-UP ATM SITE 7 EXCUSIVE PARKING AREA 3 AEY STORE SUITE 'B' 2,800 SF 1,000 SF C ROSENA AVE CAP RATE (BASED ON ACTUA): 5.0% andlord Initials Tenant Initials TOTA BUIDING SIZE: AND AREA: ±3,800 SF ±0.50 Acres YEAR BUIT: 2013 CURRENT NOI: $122,400 OWNERSHIP: Fee Simple (and & Improvements) NOTES: 7-Eleven will be responsible for managing the property and paying all expenses until the 1,000 SF vacant unit is leased. OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA

4 INVESTMENT OVERVIEW : 4 SITE INVESTMENT HIGHIGHTS 2013 DEMOGRAPHICS 1-mile 3-mile 5-mile Average Household Income: 44,860 61,550 67,725 Estimated Population: 31, , ,408 Projected Population (2018): 34, , ,331 Median Age: Estimated Daytime Population: 6,692 34,817 80,940 STRONG INVESTMENT FUNDAMENTAS Brand new Corporate ease with S&P rated AA- Tenant and Chase Bank (ATM) Credit Tenant on 10 year primary term lease and 10% increases every 5 years. Recession Proof Tenants, Easy Management Genuine upside through lease up of vacant 1,000 SF unit. Brand new construction (2013) no deferred maintenance. Prime location corner lot and destination location ensures ongoing desirability. Owner can increase after tax cash-flow by depreciating the improvement not a ground lease. PRIME OCATION IN ESTABISHED TRADE AREA Focal, hard-corner location at signalized intersection. Arrow Blvd (aka Arrow Route) is a main thoroughfare, connecting the Cities of Fontana, Rancho Cucamonga, Upland, and Claremont with over 16,000 cars per day (over 30,000 cars per day at intersection). Strong Demographics, with over 354,000 people living within 5 miles. Seasoned, established neighborhood. OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA

5 PROPERTY OCATION : 5 AREA OVERVIEW Fontana is a city of approximately 200,762 residents in San Bernardino County, California. The U.S Census reported that Fontana s population was the second most populous city in San Bernardino county and 14th in the state. Founded in 1913, it remained essentially rural until World War II, when entrepreneur Henry J. Kaiser built a large steel mill in the area. The city has grown due to its supply of affordable housing, quality of life, and its proximity to major metropolitan areas. With Interstate 10 and State Route 210 transecting the city from east to west, and Interstate 15 passing diagonally through its northwestern quadrant, the city serves as a regional hub of the trucking industry for many dealerships, sales centers, and distribution centers for such companies as Toyota, Target, Sears, Mercedes-Benz, Southern California Edison, Home Shopping Network, and Avery Dennison. It is home to the largest of the San Bernardino County system libraries, and the Auto Club Speedway on the site of the Kaiser Steel Mill. INAND EMPIRE The Inland Empire, comprised of Riverside and San Bernardino Counties, is the largest region of Southern California. With a population of more than 4,000,000, this region is itself larger than 24 of the 50 U.S. states. Its borders span from the Orange and os Angeles County lines in the west, more than 100 miles east to the low desert communities of Palm Springs, a Quinta, and Rancho Mirage. It also runs nearly 150 miles from north to south, from the state-line border with Nevada in the north, to the southern-most city in the region, Temecula. The Inland Empire market saw a population surge in the late 1990 s and early 2000 s, following the demand for affordable family housing, and is still growing today. This robust market is also in close proximity to major Southern California airports, ports, and train routes which makes it an ideal location for not only retail, but industrial distribution as well TOP EMPOYERS IN FONTANA, CA # EMPOYER # OF EMPOYEES 1 KAISER PERMANENTE 5,300 2 FONTANA UNIFIED SCHOO DISTRICT 3,939 3 CITY OF FONTANA 1,883 4 TARGET 1,393 5 MANHEIM AUCTIONS BETTER BEVERAGES AMERICAN SECURITY PRODUCTS CORONADO STONE PRODUCTS FIRTH RIXSON REDDAWAY 350 OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA

6 C ARROW BVD C MONUMENT SIGN 3 EXHIBIT B-1 SITE PAN 7 AEY 7-11 STORE EXCUSIVE PARKING AREA PREMISES 10 SUITE 'B' 2,800 SF 1,000 SF EECTRIC VEHICE CHARGING STATION andlord Initials PROPERTY OCATION : 6 UPAND AVE FONTANA CITY HA FONTANA POICE DEPT SEVIE PARK CYPRESS AVE MASONIC ODGE SITE PACIFIC EECTRIC BIKE TRAI ARROW BVD SIERRA AVE EWIS IBRARY & TECHNOOGY CENTER CENTER STAGE THEATER FONTANA HUMAN RESOURCES MIER PARK SAN BERNARDINO COUNTY FIRE DEPT DRIVE-UP ATM C ROSENA AVE Tenant Initials C VAENCIA AVE FONTANA COMMUNITY SERVICES OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA

7 PROPERTY DESCRIPTION : 7 PROPERTY DETAIS Property Address SEC Arrow Blvd & Juniper Ave, Fontana, CA ocation Description ocated at the southeast corner of Arrow Blvd and Juniper Ave, north of the I-10 and south of the Foothill Blvd (Historic Route 66) in Fontana, CA, San Bernardino County. Parking Two parking spaces as electric vehicle charging stations and 16 parking spaces including 2 accessible parking spaces. Parcels thru 13 and Area Approximately 0.50 Acres Building Area Approximately 3,800 square feet Access Access to the property is via 3 driveways on Arrow Blvd, one on Rosena Ave, and one off Juniper Ave via an alley connecting Juniper Ave and Rosena Ave. Year Built Brand new construction will completed in 2013 SITE OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA

8 PROPERTY DESCRIPTION : 8 PROPERTY PHOTOS VACANT 1,000 SF ENDCAP UNIT CHASE DRIVE-UP ATM TWO PARKING SPACES WITH EECTRIC VEHICE CHARGING STATION REAR AEY FOR IMPROVED ACCESS OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA

9 SITE PAN PROPERTY DESCRIPTION : 9 SITE PAN C ARROW BVD MONUMENT SIGN EECTRIC VEHICE CHARGING STATION C C DRIVE-UP ATM 3 7 AEY EXCUSIVE PARKING AREA STORE SUITE 'B' 2,800 SF 1,000 SF C ROSENA AVE PREMISES OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA

10 TENANT PROFIES & EASE ABSTRACTS : 10 TENANT PROFIE Tenant: Tenant Website: 7-Eleven, Inc. Description: 7-Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Based in Dallas, Texas, 7-Eleven operates, franchises or licenses some 8,000 7-Eleven stores in North America. Globally, 7-Eleven operates, franchises or licenses more than 37,100 stores in 16 countries. During 2008, 7-Eleven stores # of ocations: 8,000+ worldwide generated total sales of more than $53.7 billion. (source: 7-eleven.com). Formerly held as the Southland Corporation, the company changed its name to 7-Elven Inc. after being acquired in 1999 by the Japanese retail conglomerate Seven & i Holdings, the holding company for Seven-Eleven Japan, Ito-Yokado, Denny s restaurants, and other businesses. 7-Eleven Inc. is a wholly owned subsidiary of Seven-Eleven Japan. EASE ABSTRACT Tenant: 7-Eleven, Inc., a Texas corporation Premises: An approximately 2,800 SF unit located at SEC Arrow Blvd and Juniper Ave, Fontana, CA. Date of ease: June 3, 2012 ease Commencement: ease Term: Renewal Options: TBD Ten (10) years Four (4) five-year options Annual Rent: Years 1-5: $100,800 Years 6-10: $110,880 Option 1, Years $121,968 Option 2, Years $134,164 Option 3, Years $147,581 Option 4, Years $162,339 Security Deposit: None ease Type: NNN Use: Property Taxes: The Premises may be used up to and including twenty-four (24) hours per day for the retail sale, rental or provision of merchandise and services customarily sold, rented or provided from time to time, at stores operated or franchised by Tenant or at supermarkets or grocery markets of any type and character operated within the supermarket or grocery Industry as of the date of this ease or in the future and including product lines, services and special features or departments included in such grocery markets or supermarkets, including but not limited to groceries, produce, meat, dairy, delicatessen, ready-to-eat, made to order, and take-out food products for on or off-premise consumption, beer, wine and alcoholic beverages, financial and ticketing services (including automatic teller machines and financial services kiosks and Vcom terminals offering cash dispensing, cash deposit, balance inquiry, check cashing, bill payment and money transfer services), amusement games, greeting cards, automotive products, donuts and other types of fresh bakery and pasty products, cigarettes and tobacco products, magazines, lottery, pay telephones and related equipment, vended video rentals, air and water stations, propane rentals and related equipment, and sundries, or any other lawful purpose. Tenant agrees to pay all taxes levied upon its personal property, including trade fixtures and inventory, located on the Premises. Tenant shall reimburse andlord for all taxes and assessments levied against the Premises during the Term and Extended Term after presentation to Tenant by andlord of actual tax statements or copies thereof (which show the tax rate, assessed value, breakdowns of direct assessments and penalties, is applicable) and receipt evidencing payment thereof from the taxing jurisdiction(s) in which the Premises are located. OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA

11 TENANT PROFIES & EASE ABSTRACTS : 11 ARROW BVD Insurance: Utilities: Repair Maintenance: Assignment and Subletting: TENANT PROFIE/EASE ABSTRACT Subject to Tenant s rights to self-insure, Tenant agrees, at Tenant s expense, to maintain in force continuously throughout the Term, and any Extended Term, commercial general public liability insurance covering the Premises with insurance companies licensed to do business in the State of California rated A-, Vll or better by Best s Insurance Guide with combined single limit coverage of $2,000,000, coverage for worker s Compensation in the statutorily required amount, including if required by law, employer s liability limit of not less than $1,000,000. Tenant pays directly. At all times during the Term and the Extended Term, andlord agrees to maintain the exterior, roof, foundation, slab and structural soundness of the Premises, including the building, thereof. Tenant shall have the right to assign the ease subject to andlord s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Any assignment or sublease shall be subject to all of the terms, covenants and conditions of this ease and Tenant shall remain primarily liable for the payment of monthly Rent and performance of the terms, covenants and conditions of the ease. Tenant: Description: Premises: JPMorgan Chase & Co. JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. The Company is a global financial services firm and a banking institution in the United States, with global operations. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. Its Retail Financial Services division serves consumers and businesses through personal service at bank branches and through automated teller machines (ATMs), online banking and telephone banking. Drive-up ATM Facility on Parking ot Date of ease: October 2012 ease Commencement: ease Term: Renewal Options: TBD Five (5) years Two (2) five-year options with 10% increases Annual Rent: Years 1-5: $21,600 Option 1, Years 6-10 $23,760 Option 2, Years $26,136 ease Type: Gross OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA

12 RENT RO : 12 RENT RO Tenant Sq. Ft. (±) Monthly Rent Annual Rent ease Type ease Term Options Increases 7-Eleven 2,800 $8,400 $100,800 NNN 10 years (4) 5-yr Options 10% increases every 5 years and at each Option JP Morgan Chase n/a $1,800 $21,600 Gross 5 years (2) 5-yr Options 10% increases at each Option Vacant/Upside 1,000 $0 $0 NNN * Totals 3,800 $10,200 $122,400 NOTES: *Until vacant 1,000 SF unit is leased, 7-Eleven will be responsible for managing the property and paying all expenses. OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA

13 C ARROW BVD FINANCIAS : 13 PRICING SUMMARY SUMMARY Pricing Summary Property Specifications Purchase Price $2,448,000 Building Size 3,800 SF Cap Rate (Based on Actual) 5.0% and Area 0.50 Acres Price Per Square Foot $ Year Built 2013 OPERATING CASH FOW PREMISES Revenue C ROSENA AVE 7-11 STORE SUITE 'B' 2,800 SF 1,000 SF EECTRIC VEHICE CHARGING STATION andlord Initials Tenant Initials 10 PARKING AREA EXCUSIVE C AEY 7 3 DRIVE-UP ATM MONUMENT SIGN C Total Gross Revenue $122,400 Expense Reimbursement Revenue * NNN Effective Gross Revenue $122,400 ARROW BVD SITE PAN Operating Expenses EXHIBIT B-1 CAM NNN Insurance NNN Property Taxes NNN Management NNN Total Operating Expenses (NNN) NET OPERATING INCOME $122,400 NOTES: * Until vacant 1,000 SF unit is leased, 7-Eleven will be responsible for managing the property and paying all expenses. OFFERING MEMORANDUM: 7-EEVEN - SEC ARROW BVD &, FONTANA, CA

14 JEFF STANEY Sr. Vice President DRE icense # NICK WIRICK Sr. Vice President DRE icense # EE & ASSOCIATES RIVERSIDE Mission Inn Avenue, Riverside, CA Corp. ID