BLACK BEAR DINER & SCHOOLSFIRST CREDIT UNION

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1 SUBJECT PROPERTY RENDERING BLACK BEAR DINER & SCHOOLSFIRST CREDIT UNION TWO-TENANT PROPERTY IN SOCAL WITH LONG TERM LEASES RANCHO CUCAMONGA, CA

2 Overview BLACK BEAR DINER & SCHOOLSFIRST FEDERAL CREDIT UNION E FOOTHILL BLVD, RANCHO CUCAMONGA, CA $7,464,000 PRICE 5.35% CAP LEASABLE SF 10,239 SF LEASE TERMS Years LEASE TYPE Landlord Responsible for Roof & Structure YEAR RENOVATED 2018 AVERAGE RENT/SF $39 E-Commerce Resistant Tenant Mix Credit Union & Restaurant Credit Union is the 5th Largest in the U.S. w/ $13.6 billion in assets Signalized, hard corner pad in high income and synergistic trade area Benefiting from combined traffic counts of over 38,000 SURROUNDING RETAIL This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Coca-Cola, Frito-Lay, & Big Lots corporate are major employers High Incomes and tremendous density: $88,000 - $97,000 and 20, ,000 residents in the 1-5 mile radii 2

3 Investment Highlights THE OFFERING is a Class A retail strip center in the affluent city of Rancho Cucamonga, CA. This 2-tenant retail center is leased to high quality e-commerce resistant tenants in the restaurant and credit union categories. Black Bear Diner is a on a 15-year lease and SchoolsFirst Credit Union is on a 10-year lease. SchoolsFirst Credit Union is the 5th largest credit union in the U.S. by asset size, which is $13.06 billion and was ranked the #1 credit union in the U.S. by Consumer Reports. The operator of the Black Bear Diner has over 25 restaurants in California and Idaho, including 10 Black Bear Diners, 14 Popeye s, and a Sonic. The subject property sits on a premier signalized, hard corner intersection which features over 38,000 vehicles per day on what is the primary retail corridor in the marketplace. In the trade area, there is over 1,500,000 square feet of class A retail serving a significant amount of daytime office, medical, academic, and residential customers. Incomes are in the $88,000-97,000 range and there is excellent population density of 20, ,000 people in a 1-5 mile radii. Contact the team JOHN ANDREINI jandreini@capitalpacific.com PH: ID BRE# AB42816 CA DRE# JUSTIN SHARP jsharp@capitalpacific.com PH: CA DRE# THE RETAIL MARKET - Target, PetSmart, Ross, Home Depot, Hobby Lobby, Seafood City, Party City, ALDI, REI, Lowe s and a number of other major retailers draw a significant customer base to the trade area. SUBJECT PROPERTY RENDERING This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 3

4 15 187,000 28,300 HAVEN AVENUE LOS ANGELES MILLIKEN AVENUE Zoomed-Out Aerial KINDRED HOSPITAL RANCHO 34,093 E FOOTHILL BOULEVARD CITY OF RANCHO CUCAMONGA E FOOTHILL BOULEVARD SAN ANTONIO REGIONAL HOSPITAL WEST HERITAGE PERDEW WATER OF LIFE CHRISTIAN SCHOOL DONA MERCED TERRA VISTA 15 GRAPELAND WINDROWS This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. RANCHO CUCAMONGA HIGH SCHOOL VICTORIA GROVES HAVEN AVENUE ETIWANDA HIGH SCHOOL MILLIKEN AVENUE CARLTON P. LIGHTFOOT ETIWANDA INTERMEDIATE 4

5 E Zoomed-In Aerial NU NA VE HA VE DONA MERCED 4,300 RUTH MUSSER MIDDLE SCHOOL COYOTE CANYON 1,277 RANCHO SPECIALTY HOSPITAL CITY OF RANCHO CUCAMONGA UPLAND CHRISTIAN ACADEMY KINDRED HOSPITAL RANCHO UE 34,093 E FOOTHILL BOULEVARD EN AV CITY OF RANCHO CUCAMONGA ELM SPRUCE AVENUE E FOOTHILL BOULEVARD MOUNTAIN VIEW URGENT CARE W RED OAK S TR EET OAK AVENUE TE HI LOS ANGELES This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 5

6 Surrounding Retail Site Plan 10,649 CHURCH STREET SPRUCE AVENUE 4,300 1,277 ELM AVENUE 34,093 E FOOTHILL BOULEVARD This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 6

7 Surrounding Retail 7

8 Income & Expense SUBJECT PROPERTY RENDERING CURRENT Price: $7,464,000 Capitalization Rate: 5.35% Price Per Square Foot: $ Total Leased (SF): % 10,239 Total Vacant (SF): 0.00% 0 Total Rentable Area (SF): % 10,239 INCOME PER SQUARE FOOT Scheduled Rent $39.00 $399,321 EFFECTIVE GROSS INCOME $399,321 EXPENSE CAM NNN $ Insurance NNN $ Property Taxes NNN $0 TOTAL OPERATING EXPENSES $0 NET OPERATING INCOME $399,321 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 8

9 Rent Roll TENANT TENANT INFO LEASE TERMS RENT SUMMARY SQ. FT. PERCENT OF GLA TERM MONTHLY RENT ANNUAL RENT RENT/FT Black Bear Diner * 5, % 01/10/19 01/31/24 $18,447 $221,364 $ /01/24 01/31/29 $20,292 $243,500 $ /01/29 01/31/34 $22,321 $267,850 $47.19 Option 1 02/01/34 01/31/39 $24,553 $294,641 $51.91 Option 2 02/01/39 01/31/44 $27,008 $324,100 $57.10 Option 3 02/01/44 01/31/49 $29,709 $356,510 $62.81 SchoolsFirst Federal Credit * 4, % 01/10/19 01/31/24 $14,830 $177,957 $ /01/24 01/31/29 $16,313 $195,754 $42.90 Option 1 02/01/29 01/31/34 $17,537 $210,446 $46.12 Option 2 02/01/34 01/31/39 $19,290 $231,481 $50.73 Option 3 02/01/39 01/31/44 $21,218 $254,615 $55.80 OCCUPIED 10, % $33,277 $399,321 $39.00 VACANT % CURRENT TOTALS 10, % *Store openings are projected to be January 10, This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 9

10 Lease Abstract PREMISES & TERM TENANT Black Bear Diner BUILDING SF 5,676 SF LEASE TYPE NN TERM 15 Years RENT COMMENCEMENT 01/10/2019 (estimated) EXPIRATION 01/31/2029 RENT BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 01/10/19-01/31/24 $18,447 $221,364 02/01/24-01/31/29 $20,292 $243,500 02/01/29-01/31/34 $22,321 $267,850 OPTIONS DATE RANGE MONTHLY RENT ANNUAL RENT #1. 02/01/34-01/31/39 $24,553 $294,641 #2. 02/01/39-01/31/44 $27,008 $324,100 #3. 02/01/44-01/31/49 $29,709 $356,510 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. EXPENSES TENANT S OBLIGATIONS Tenant is responsible for all maintenance and repair of the nonstructural portions of the premises, including the HVAC unit. Tenant shall also pay Landlord for its pro-rata share of Common Area expenses. LANDLORD S OBLIGATIONS Landlord is responsible for the maintenance and repair of the roof and structure of the Tenant s building, as well as the underground utility lines up to the main point of entry into the Premises. Landlord shall also maintain and repair the common areas of the Property. TENANT S INSURANCE Tenant shall carry the following insurance policies: (i) Liability Insurance with a limit no less than $2 million per occurrence; (ii) Property Insurance providing coverage on a replacement cost basis for Tenant s property; (iii) Automobile Liability Insurance with a limit no less than $1 million per accident; and (iiii) Workers Compensation and Employers Liability Insurance. Tenant shall also reimburse Landlord for its pro-rata share of Landlord s insurance expenses. LANDLORD S INSURANCE Landlord shall carry the following insurance policies: (i) Liability Insurance with a limit no less than $2 million per occurrence; and (ii) Property Insurance that insures the Building and the Property for full replacement value. TAXES Tenant shall reimburse Landlord for its pro-rata share of the Real Property Taxes each Lease Year. Tenant shall also pay all personal property taxes directly to the taxing authority. UTILITIES Tenant is responsible for the payment of all utility charges, and shall pay directly to the utility provider. 10

11 Lease Abstract PREMISES & TERM TENANT SchoolsFirst Federal Credit Union BUILDING SF 4,563 SF LEASE TYPE NN TERM 10 Years RENT COMMENCEMENT 01/10/2019 (estimated) EXPIRATION 01/31/2029 RENT BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 01/10/19-01/31/24 $14,830 $177,957 02/01/24-01/31/29 $16,313 $195,754 OPTIONS DATE RANGE MONTHLY RENT ANNUAL RENT #1. 02/01/29-01/31/34 $17,537 $210,446 #2. 02/01/34-01/31/39 $19,290 $231,481 #3. 02/01/39-01/31/44 $21,218 $254,615 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. EXPENSES TENANT S OBLIGATIONS Tenant is responsible for all maintenance and repair of the nonstructural portions of the premises, including the HVAC unit. Tenant shall also pay Landlord for its pro-rata share of Common Area expenses. LANDLORD S OBLIGATIONS Landlord is responsible for the maintenance and repair of the roof and structure of the Tenant s building, as well as the underground utility lines up to the main point of entry into the Premises. Landlord shall also maintain and repair the common areas of the Property. TENANT S INSURANCE Tenant shall carry the following insurance policies: (i) Liability Insurance with a limit no less than $2 million per occurrence; (ii) Property Insurance providing coverage on a replacement cost basis for Tenant s property; (iii) Automobile Liability Insurance with a limit no less than $1 million per accident; and (iiii) Workers Compensation and Employers Liability Insurance. Tenant shall also reimburse Landlord for its pro-rata share of Landlord s insurance expenses. LANDLORD S INSURANCE Landlord shall carry the following insurance policies: (i) Liability Insurance with a limit no less than $2 million per occurrence; and (ii) Property Insurance that insures the Building and the Property for full replacement value. TAXES Tenant shall reimburse Landlord for its pro-rata share of the Real Property Taxes each Lease Year. Tenant shall also pay all personal property taxes directly to the taxing authority. UTILITIES Tenant is responsible for the payment of all utility charges, and shall pay directly to the utility provider. 11

12 Tenant Mix SCHOOLSFIRST FEDERAL CREDIT UNION SchoolsFirst Federal Credit Union is a federally chartered Credit Union with an 84 year operating history that serves the educational community in Southern California. They are the 5th largest credit union in the U.S. by asset size, which is $13.06 billion and was ranked the #1 credit union in the U.S. by Consumer Reports. They have almost $800M in cash and cash equivalents according to their most recent 2016 Annual Report, which is up by $100M from For more information on their financials, click HERE. BLACK BEAR DINER Black Bear Diner is a restaurant chain in the western United States which serves homestyle and old-fashioned comfort foods. The first restaurant was opened in Mount Shasta, California, in The company is based in Redding, California. It now claims 106 locations in eight states. Black Bear decor has a rustic motif with over-thetop bear paraphernalia. Every restaurant is decorated with a 12-foot-tall black bear carving. It offers family meals such as breakfast, burgers, salads, and shakes. Baked goods prepared on site, and some locations offer alcohol sales. ABOUT GUARANTOR/ OPERATOR SUBJECT PROPERTY RENDERING This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. The tenant operates over 25 restaurants including 10 Black Bear Diners, 14 Popeyes, a Sonic, and a Twin Peaks restaurant. They will execute a personal guaranty at closing, which will be crosscollateralized with the above-mentioned operating assets. This diversification of the sponsor guaranty across national brands provides an investor with a more stable and reliable income stream. 12

13 Demographics POPULATION 1-MILE 3-MILES 5-MILES , , , , , , , , ,402 LOS ANGELES (51 MINS, 43 MILES) RANCHO CUCAMONGA 2017 HH INCOME 1-MILE 3-MILES 5-MILES Average $88,287 $93,067 $97,174 TOP EMPLOYERS EMPLOYER Amphastar Pharmaceutical 880 Southern California Edison 800 Mercury Casualty 606 Big Lots 565 Frito-Lay 561 THE AVERAGE HOUSEHOLD INCOME WITHIN A 5-MILE RADIUS IS OVER $97K This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

14 Location Overview RANCHO CUCAMONGA, CALIFORNIA DOWNTOWN LOS ANGELES RANCHO CUCAMONGA is a suburban city situated at the foothills of the San Gabriel Mountains in San Bernardino County, California. It is located 43 miles east of Downtown Los Angeles. The city has an average of 287 sunny days per year offering residents and visitors excellent conditions for exploring the city s 20+ parks and community facilities. The city has earned distinctions in several national magazines for being one of the top places to live in the U.S. due to it s great schools, neighborhoods, location, and business draw - attracting business from the nation s largest corporations including Coca-Cola, Nong Shim, Frito-Lay, and Amphastar Pharmaceuticals. The city has a strong, growing economy that provides employment opportunities for local residents, attracts investments, supports local businesses, and generates public revenue. ABOUT THE COUNTY SAN BERNARDINO COUNTY is offers incredible business advantages including a skilled workforce of nearly 900,000, well-funded transportation infrastructure, a strategic gateway to global market, access to a 2.1 million strong regional consumer population, and affordable Southern California quality of life. In the county alone there are nearly 1,800 manufacturers and 4 engineering schools providing the area with a well-educated workforce. 2.1 MILLION SAN BERNARDINO COUNTY POPULATION (ESTIMATED) This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 14

15 We d love to hear from you. JOHN ANDREINI jandreini@capitalpacific.com PH: ID BRE# AB42816 CA DRE# JUSTIN SHARP jsharp@capitalpacific.com PH: CA DRE# CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM: ZEB RIPPLE JOHN ANDREINI ZANDY SMITH JUSTIN SHARP CHRIS KOSTANECKI JOE CACCAMO RICK SANNER CHRIS PETERS DAVE LUCAS JACK NAVARRA This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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