The Shops at Brimhall

Transcription

1 Offering Memorandum The Shops at Brimhall For Sale Investment Opportunity Brimhall Road Bakersfield, CA Jewetta Avenue Brimhall Road Exclusive Brokers: Garret B. Tuckness, CLS Senior Vice President Central California License No: JJ Woods, CLS Senior Vice President Central California License No: Stockdale Hwy, Suite 102 Bakersfield, CA Phone: (661) Fax: (661)

2 Table of Contents > INVESTMENT Investment Summary - Offering... 4 Investment Highlights... 5 Financial Summary... 6 Rent Roll... 6 Property Photographs... 7 Parcel Map... 8 Site Plan... 9 Property Aerial Expanded Site Aerial Vicinity Map with Major Retail > MARKET OVERVIEW Demographics About Bakersfield COLLIERS INTERNATIONAL P. 2

3 The Shops at Brimhall Offering Memorandum For Sale Investment Opportunity > Investment COLLIERS INTERNATIONAL

4 INVESTMENT Investment Summary OFFERING Offering Price $2,315,956 (6.85% Cap Rate) In-Place NOI $158,643 Occupancy of Shop Building 100% Total GLA 7,308 SF of building on 37,026 SF of land Zoning: C-1 (General Commercial / City of Bakersfield) APN: Year Built: COLLIERS INTERNATIONAL P. 4

5 INVESTMENT Investment Highlights High Quality Asset Prime Central California opportunity to purchase a classic strip center Benefits from a classic strip site plan and enjoys high visibility Easily accessed location at the NEC of Brimhall Road and Jewetta Avenue Strong visibility, signage and ease of access from Brimhall Road Fee ownership including improvements provides depreciation enhancing after-tax cash flow Grocery Outlet, Jack-in-the-Box, Liberty High School and Liberty park are in the immediate vicinity of The Shops at Brimhall and provide strong traffic generation for the site Investor Opportunity Purchase as an Investor and capitalize on the outstanding Central California location Building is in excellent condition with no deferred maintenance Strong Real Estate Fundamentals Classic strip center and conventional site plan with smart-sized tenant spaces will keep re-tenanting costs down Strong Demographics More than 10,030 people within a 1-mile radius with an Average Household Income of $111,987 More than 83,354 people within a 3-mile radius with an Average Household Income of $113,748 More than 194,466 people within a 5-mile radius with an Average Household Income of $97,649 Ideal 1031 Exchange Property Strong Location in Established Trade Area in Northwest Bakersfield Strong demographics in an established Bakersfield location The property has excellent egress and ingress from Brimhall Road and Jewetta Avenue Uniquely positioned in the strong demographic trade area of northwest Bakersfield. Liberty High School and Liberty park across the street Optional Value Add / Development Opportunity Two fully improved C-1 pads also available for purchase Pad ,768 SF ($13.50 psf) COLLIERS INTERNATIONAL P. 5

6 INVESTMENT Financial Summary & Rent Roll OPERATING CASH FLOW YEAR 2016 REVENUE Base Rental Income $158,643 Expense Reimbursement (2015) $46,839 Effective Gross Revenue $205,482 Subject OPERATING EXPENSES PSF CAM $1.31 $9,568 Insurance $0.29 $2,114 Property Taxes $1.74 $12,694 Utilities $0.72 $5,265 Trash $1.30 $9,503 Management Fee $1.05 $7,694 Total Operating Expenses $6.41 $46,839 Net Operating Income $158,643 All Cash Return 6.85% Brimhall Road (12,975 Cars AADT ) RENT ROLL UNIT # NAME Lease Start Lease End Sq. Ft. Rent Increase Date Annual Rent PSF Annual Rent Monthly Rent PSF Monthly Rent A Mountain Mike s 6/19/2011 6/30/2022 2,612 Current $19.80 $51, $1.65 $4, year C SuperCuts 8/20/ /31/2019 1,014 Current $28.20 $28, $2.35 $2, year 1-5 year D Diva Nails & Salon 4/30/2008 6/30/2020 1,178 Current Jul-2017 Jul-2018 Jul-2019 $26.44 $27.84 $29.04 $30.24 $31, $32, $34, $35, $2.22 $2.32 $2.42 $2.52 $2, $2, $2, $2, E Goin Postal- Month to Month 1/1/2017 Mo. to Mo. 1,096 Current $17.40 $19, $1.45 $1, F Lolo s Mix 1/1/ /31/2018 1,408 Current Jan-2017 Jan-2018 $19.80 $20.40 $21.00 $27, $28, $29, $1.65 $1.70 $1.75 $2, $2, $2, Option(s) to Renew TOTAL 7,308 $21.71 $158, $1.81 $13, TOTAL OCCUPIED 7,308 PERCENT OCCUPIED 100% COLLIERS INTERNATIONAL P. 6

7 INVESTMENT Property Photographs Subject Brimhall Road -12,975 Cars AADT COLLIERS INTERNATIONAL P. 7

8 INVESTMENT Parcel Map Subject Dark BRIMHALL ROAD OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 8

9 INVESTMENT Site Plan Subject AVAILABLE FOR PURCHASE AVAILABLE FOR PURCHASE NOT A PART COLLIERS INTERNATIONAL P. 9

10 INVESTMENT Property Aerial Jewetta Avenue Brimhall Road (12,975 Cars AADT ) COLLIERS INTERNATIONAL P. 10

11 INVESTMENT Expanded Site Aerial BRIMHALL ROAD OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 11

12 INVESTMENT Bakersfield Vicinity Map - Major Retail SUBJECT Dark COLLIERS INTERNATIONAL P. 12

13 THE SHOPS AT BRIMHALL Offering Memorandum For Sale Investment Opportunity > Market Overview COLLIERS INTERNATIONAL

14 MARKET OVERVIEW Demographics 2015B Households 1 Mile 3 Mile 5 Mile Employees 1,980 26,490 67,469 Establishments 265 2,548 6,540 Total Population 10,630 82, ,466 Total Households 3,579 28,656 67,587 Population Density (per Sq. Mile) 3, , , Employed Civilian Population 16 Total 5,125 41,042 94,049 White Collar 69.1% 67.1% 63.7% Blue Collar 30.9% 32.9% 36.3% Housing Units Total Housing Units 3,647 29,379 67,587 Occupied Housing Units 98.1% 97.5% 97.2% Vacant Housing Units 1.,9% 2.5% 2.6% Household Income Average Household Income $111,987 $113,748 $97,649 Median Household Income $83,368 $83,844 $72,607 Per Capita Income $37,736 $39,670 $34,015 Provided by Alteryx Demographics (2015b) COLLIERS INTERNATIONAL P. 14

15 MARKET OVERVIEW About Bakersfield With a growing population, plentiful labor pool, and room for expansion, Bakersfield offers a surprising sophistication mingled with small town friendliness. Situated in the southern end of California s Central Valley, Bakersfield is strategically located in the heart of the one of the world s largest economies. It is a place where cutting edge technology development is blended with a rich history of agriculture and oil production. Bakersfield has a rare quality to newcomers that feels like coming home, an oasis of friendly people, diverse cultures, and bright ideas in the vast stretch of the Golden State. New residents are attracted to Bakersfield s high quality of life. Our housing costs continue to be among the lowest in California, giving residents the ability to achieve the American dream of home ownership. In Bakersfield, people take pride in their work. Bakersfield is committed to providing an environment where people can live and work in the same community. Bakersfield s state university, community college, satellite University of California campus and a half dozen private and trade colleges work closely with business leaders to train qualified employees. Population Metro Bakersfield 524,600 City of Bakersfield 379,110 Kern County 886,502 California 39,006,973 Average high/low temps 76.8F / 53.1F Average annual rainfall 6.49 Sunny days per year 273 Elevation 403 feet Square miles (city) Population density (city): 2,459 persons/sq. mi. COLLIERS INTERNATIONAL P. 15

16 MARKET OVERVIEW 9th most populous city in California, 52nd largest city in the U.S. Larger than Toledo or Pittsburgh. The Bakersfield Statistical Metropolitan Area is the 62nd largest in the country. Population increased 37% between 2000 and 2010 and is increasing at approximately 1.8% per year with the expectation that Bakersfield s population will be 437,800 by th largest television market and 77th largest radio market in the nation Large employers include Nestle, Frito-Lay, State Farm, AERA Energy, Chevron and California Resources Corp. Average travel time to work 21.5 minutes Median household income $56,842 County seat of Kern County, 3rd largest county in California; Kern is the 4th largest agricultural producing county in U.S. County generates 76% of all oil produced in California Within a four hour drive of 90% of California s population Central, affordable location attracts statewide and regional conventions 73.4% of residents have high school education or higher Bakersfield College (founded 1913) and California State University Bakersfield (founded 1970) CSU Bakersfield has NCAA Division I status Pro sports: ice hockey, baseball, auto racing and soccer Home to Bakersfield Jazz Festival since 1986 COLLIERS INTERNATIONAL P. 16

17 CONFIDENTIALITY AGREEMENT Colliers International ( Broker ) and Brimhall Group, LLC ( Owner ) have prepared and/or approved this confidential Offering Memorandum ( Memorandum ) intended solely for the limited purpose of prospective buyers ( Prospective Buyer ) and/or their broker ( Buyer s Broker ), collectively referred to herein as recipients ( Recipients ) to determine if the Prospective Buyer may desire to express any further interest in the acquisition of The Shops at Brimhall ( Property ) located at Brimhall Road, Bakersfield, California. By accepting this Memorandum the Recipients hereby agrees as follows: This Memorandum has been compiled to provide the Recipients with summary information only regarding the Property. The information contained herein is not a substitute for a thorough due diligence investigation of the property by the Prospective Buyer. All financial projections are based on assumptions relating to the general economy, competition, debt structure, competition and other factors beyond the control of the of the Owner and Broker and, therefore are subject to change and/or material variation. This Memorandum does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information, which the Prospective may need or desire to fully evaluate the Property. Summaries contained herein of any documents are not intended to be full comprehensive or complete statement(s) of the terms of such documents, but rather are intended to outline some of the principal provisions contained therein. This Memorandum does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of this Memorandum and/or the delivery of this Memorandum to the Prospective Buyer. The Prospective Buyer agrees not to rely on this Memorandum and agrees to rely solely on its own investigation of all factors effecting, or which may affect, the property. Information contained in this Memorandum is subject to change without notice. Additional information and an opportunity to inspect the Property will be made available to an interested and qualified Prospective Buyer. Broker has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Memorandum has been obtained from sources we believe to be reliable; however, Broker has not verified, and will not verify, any of the information contained herein, nor has Broker conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Neither the Owner or Broker nor any of their respective officers, agents, principals, consultants or related parties have made or will make any representations or warranties, either express or implied, as to the accuracy or completeness of this Memorandum or any of its contents, or that actual result will conform to any projections made therein. No legal commitment or obligation shall arise by reason of the Memorandum or its contents. Analysis and verification of the information contained in the Memorandum is the sole responsibility of the Prospective Buyer. The Property is to be sold on as-is, where-is basis without any representation or warranties of any kind, other than those that may be included, in writing, in a purchase/sale agreement between the Owner and Prospective Buyer.

18 CONFIDENTIALITY AGREEMENT Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property; or, to terminate discussions with any entity at any time with or without notice; or, to remove the Property from the market with or without notice. Owner has no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until a sale of the Property is approved by the Owner in its sole discretion; and, a written agreement for the purchase/sale of the Property has been approved by the Owner and its legal counsel and has been fully executed and fully delivered; and, any conditions to the Owner s obligations thereunder have been satisfied or waived. This Memorandum and its contents, or any other information subsequently provided in any form regarding the Property, except such information, which is matter of public record or is provided in sources available to the public (such contents so limited herein called the Proprietary Information ) are of a confidential nature. By accepting the Proprietary Information the Recipients agree to keep the Proprietary Information in the strictest confidence and to only use the Proprietary Information in connection with evaluating the Property for purchase. The Recipients further agree to not photocopy, duplicate or disseminate the Proprietary information by any means to any other entity, or to use the Proprietary Information in any way detrimental to the Owner or Broker. Recipients agree not to contact or communicate with the tenants of the Property without the prior written consent of the Owner. If the foregoing is not agreeable to the Recipients, this memorandum is not to be used in any manner and must be returned to Broker. As an independently owned and operated member of Colliers International, Colliers Tingey International, Inc. is solely responsible for any liability arising from this agreement.