SINGLE TENANT CALIFORNIA INVESTMENT OPPORTUNITY BAKERSFIELD ABSOLUTE NNN ACTUAL SITE

Transcription

1 SINGLE TENANT ABSOLUTE NNN INVESTMENT OPPORTUNITY BAKERSFIELD CALIFORNIA

2 EXCLUSIVELY MARKETED BY JOHN REDFIELD VICE PRESIDENT SRS REAL ESTATE PARTNERS 610 Newport Center Drive, Suite 1500 Newport Beach, CA DL: M: CA License No IN COOPERATION WITH: THOMAS CHICHESTER MANAGING DIRECTOR FARIS LEE INVESTMENTS Von Karman Avenue, Suite 800 Irvine, CA DL: CA License No

3 TABLE OF CONTENTS 4 INVESTMENT SUMMARY OFFERING HIGHLIGHTS INVESTMENT HIGHLIGHTS 7 PROPERTY OVERVIEW AERIALS SITE PLAN LOCATION MAP 12 AREA OVERVIEW DEMOGRAPHICS 14 FINANCIALS RENT ROLL BRAND PROFILE

4 INVESTMENT SUMMARY SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building) in an absolute NNN leased Valvoline, guaranteed by their largest franchisee with over 200 locations, investment property located in Bakersfield, CA. The tenant is on a long-term 20 year lease with approximately 8 years remaining in the initial term with an additional 2 (5-year) options to extend and 1 (4-year) option to extend. The lease features a 15% rental increase in 2021 and at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is franchisee guaranteed and is absolute NNN with zero landlord responsibilities. Valvoline is located at the signalized, hard corner intersection of White Lane and Ashe Road with a combined 63,500 vehicles passing by daily. The site is also just 2.4 miles off of State Highway 99 (114,000 VPD) with convenient on/off ramp access. Valvoline is a pad site in Crossroads Center, an automobile oriented plaza, which helps promote crossover shopping to the subject site. Valvoline is also directly across the intersection from a FoodMaxx anchored center with national tenants including KFC, Wienerschnitzel, Pizza Hut, and more. Other nearby national/credit tenants include Walmart Supercenter, Sam s Club, The Home Depot, 24-Hour Fitness, Kohl s, Ross Dress for Less, Big Lots, Petco, and more, further increasing consumer traffic to the subject trade area. The 5-mile trade area is supported by a dense population of over 269,000 residents with an average household income of $74, INVESTMENT SUMMARY SRS NATIONAL NET LEASE GROUP.

5 OFFERING HIGHLIGHTS OFFERING PRICING: $3,395,000 NET OPERATING INCOME: $190,440 IN-PLACE CAP RATE: 5.60% 2021 CAP RATE: 6.45% GUARANTY: Franchisee TENANT: Valvoline (Henley Pacific LA LLC) LEASE TYPE: Abs. NNN LANDLORD RESPONSIBILITIES: None PROPERTY SPECIFICATIONS RENTABLE AREA: 3,564 SF LAND AREA: Acres PROPERTY ADDRESS: 6501 White Lane, Bakersfield, CA YEAR BUILT: 1990 PARCEL NUMBER: OWNERSHIP: Fee Simple (Land and Building) 5 OFFERING HIGHLIGHTS SRS NATIONAL NET LEASE GROUP.

6 INVESTMENT HIGHLIGHTS LONG-TERM LEASE LARGEST VALVOLINE FRANCHISEE GUARANTEED LEASE Long-term 20 year lease with approximately 8 years remaining in the initial term with an additional 2 (5-year) options to extend and 1 (4-year) option to extend The lease features a 15% rental increase in 2021 and at the beginning of each option period, steadily growing NOI and hedging against inflation The site is operated by Henley Enterprises (founded in 1987), the largest Valvoline franchisee in the nation with over 200 locations Valvoline is the second-largest quick-lube chain in the United States ABSOLUTE NNN FEE SIMPLE OWNERSHIP ZERO LANDLORD RESPONSIBILITIES Tenant pays for CAM, taxes, insurance and maintains all aspects of the premises No landlord responsibilities Ideal, management-free investment for an out-of-state, passive investor DENSE POPULATION IN 5-MILE TRADE AREA More than 269,000 residents and over 86,500 employees support the trade area $74,000 average household income SIGNALIZED HARD CORNER INTERSECTION STATE HIGHWAY 99 (114,000 VPD) Situated at the signalized, hard corner intersection of White Lane and Ashe Road with a combined 63,500 vehicles passing by daily Just 2.4 miles off of State Highway 99 (114,000 VPD) Convenient location with nearby direct on/off-ramp access OUTPARCEL TO CROSSROADS CENTER STRONG TENANT SYNERGY NEARBY APARTMENTS Valvoline is a pad site in Crossroads Center, an automobile oriented plaza Strong tenant synergy helps promote crossover shopping to the subject site The site is across the street from Laurelwood Oaks Apartments (120 units) and Sand Creek Apartments (112 units), providing a direct consumer base to draw from ACROSS THE INTERSECTION FROM FOODMAXX DENSE RETAIL CORRIDOR Directly across the intersection from a FoodMaxx anchored center with credit tenants including KFC, Wienerschnitzel, Pizza Hut, and more Nearby national/credit tenants include Walmart Supercenter, Sam s Club, The Home Depot, 24-Hour Fitness, Kohl s, Ross Dress for Less, Big Lots, Petco, and more Increases consumer traffic to the subject trade area 6 INVESTMENT HIGHLIGHTS SRS NATIONAL NET LEASE GROUP.

7 PROPERTY OVERVIEW ACCESS White Lane:... 1 Access Point Ashe Road:... 1 Access Point TRAFFIC COUNTS White Lane:... 44,900 Ashe Road:... 18,600 IMPROVEMENTS There is approximately 3,564 SF of existing building area. PARKING No dedicated parking. Shared parking is governed by CC&Rs for the adjacent property. PARCEL MAP YEAR BUILT PARCEL 1990 Parcel Number: Acres: Square Feet: 5,662 ZONING M-1: Light Manufacturing 7 PROPERTY OVERVIEW SRS NATIONAL NET LEASE GROUP.

8 Valley Plaza Mall (1,100,000 SF) Sand Creek Apartments (112 Units) Laurelwood Oaks Apartments (120 Units) White Lane 44,900 CARS PER DAY Panama-Buena Vista Union School District Ashe Road 18,600 CARS PER DAY

9 Panama-Buena Vista Union School District Laurelwood Oaks Apartments (120 Units) Ashe Road Sand Creek Apartments (112 Units) 18,600 CARS PER DAY White Lane 44,900 CARS PER DAY

10 South High School State Highway 99 West High School 114,000 CARS PER DAY Valley Plaza Mall (1,100,000 SF) Industrial / Business Park Laurelglen Elementary School Ashe Ro ad 18,600 CARS PER DAY Tevis Junior High School ne La hite W 44,900 CARS PER DAY Sing Lum Elementary School Heir Force Academy Preschool Watermark Apartments (208 Units) Donald E. Suburu Elementary School

11 WHITE LN. - 44,900 VPD 1 STOP SMOG & AUTO CARE CENTER ASHE RD. - 18,600 VPD

12 2017 ESTIMATED POPULATION 1 Mile... 15,768 3 Mile...137,975 5 Mile...269, AVERAGE HOUSEHOLD INCOME 1 Mile...$66,483 3 Mile...$77,076 5 Mile...$74, ESTIMATED TOTAL EMPLOYEES 1 Mile... 7,610 3 Mile... 41,562 5 Mile... 86,508 BAKERSFIELD

13 AREA OVERVIEW Bakersfield, California Bakersfield is a city in and the county seat of Kern County, California, United States. It covers about 142 square miles near the southern end of the San Joaquin Valley and the Central Valley region. Bakersfield s population is approximately 381,201 as of July 1, 2017, making it the ninth-most populous city in California and the 52nd-most populous city in the nation. The Bakersfield Delano Metropolitan Statistical Area, which includes all of Kern County, had a 2010 census population of 839,631, making it the 62nd largest metropolitan area in the United States. The more builtup urban area that includes Bakersfield and areas immediately around the city, such as East Bakersfield, Oildale and Rosedale, have a population of approximately 464,000. Bakersfield is a charter city. The city is a significant hub for both agriculture and oil production. Kern County is the most productive oil-producing county, and the fourth most productive agricultural county (by value) in the United States. Industries include natural gas and other energy extraction, aerospace, mining, petroleum refining, manufacturing, distribution, food processing, and corporate regional offices. The city is also the birthplace of the country music genre known as the Bakersfield sound. Major crops for Kern County include: grapes, citrus, almonds, carrots, alfalfa, cotton, and roses. The city serves as the home for both corporate and regional headquarters of companies engaged in these industries. For a city of modest size, Bakersfield provides a good assortment of arts and cultural offerings. Some of the more notable include: The Rabobank Arena Theater & Convention Center, The McMurtrey Aquatics Center, The Bakersfield Symphony Orchestra, The Buck Owens Crystal Palace and The Fox Theatre. For the sports enthusiast, Bakersfield is home to ECHL Bakersfield Condors Hockey Team. Bakersfield also has its own Minor League Baseball (MiLB) team, the Bakersfield Blaze. The Blaze is a Class A Advanced affiliate of the Texas Rangers. Of course, the city is also within a couple of hours of all of the sporting attractions of Los Angeles. Bakersfield and the surrounding areas provide the opportunity for a wealth of outdoor activities, including: auto racing, fishing, biking, camping, golf, hiking and backpacking, jet skiing, kayaking, mountain biking, tennis, white water rafting, and more. Meadows Field Airport in Bakersfield was recently rebuilt and dedicated as the William M. Thomas Terminal. Also located at the Airport: Hall Medivac Helicopter, International Flight Training Academy (a subsidiary of Japan s ANA Airlines), SRT Helicopter Flight School, and numerous other aviation mechanics and technicians. 13 AREA OVERVIEW SRS NATIONAL NET LEASE GROUP.

14 AREA DEMOGRAPHICS DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2017 Estimated Population 15, , , Projected Population 16, , , Census Population 15, , , Estimated Households 5,227 45,330 83, Projected Households 5,378 47,156 87, Census Households 5,039 42,620 77, Estimated White 54.80% 53.20% 51.40% 2017 Estimated Black or African American 9.50% 8.70% 8.20% 2017 Estimated Asian or Pacific Islander 4.90% 8.20% 7.40% 2017 Estimated American Indian or Native Alaskan 1.50% 1.20% 1.30% 2017 Estimated Other Races 23.00% 23.00% 26.30% 2017 Estimated Hispanic 45.50% 46.90% 53.00% 2017 Estimated Average Household Income $66,483 $77,076 $74, Estimated Median Household Income $54,767 $56,845 $53, Estimated Per Capita Income $22,644 $25,490 $23, Estimated Total Businesses 602 3,340 7, Estimated Total Employees 7,610 41,562 86, AREA DEMOGRAPHICS SRS NATIONAL NET LEASE GROUP.

15 RENT ROLL LEASE TERM RENTAL RATES TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS Henley Pacific LA, LLC 3,564 Feb 2006 Jan 2026 Current - $15,870 $4.45 $190,440 $53.43 Absolute NNN 2 (5-Year) & 1 (4-Year) Feb % $18,251 $5.12 $219,006 $ % Incr. at beg. of each option Note: 1) Tenant shall have the first option to purchase the Premises, and shall respond within 15 days. 2) Franchisee guaranteed lease. FINANCIAL INFORMATION Price:...$3,395,000 Net Operating Income:...$190,440 In-Place Cap Rate: % 2021 Cap Rate: % Lease Type:... Abs. NNN PROPERTY SPECIFICATIONS Year Built: Rentable Area:... 3,564 SF Land Area: Acres Address: White Lane, Bakersfield, CA RENT ROLL SRS NATIONAL NET LEASE GROUP.

16 BRAND PROFILE VALVOLINE INSTANT OIL CHANGE Founded in 1986, Valvoline Instant Oil Change is the Quick, Easy and Trusted choice for drive thru oil changes and maintenance services which helps avoid costly and inconvenient breakdowns. It is the second largest quick lube business in America with more than 1,100 locations nationwide and growing. These services include oil changes, antifreeze changes, differential fluid changes, batteries, belts, fuel system cleaning service, lights, wipers and transmission fluid changes, and in states where services are contracted out by state regulatory agencies, emissions testing. Company Type:... Private Locations:... 1,100+ Website: BRAND PROFILE SRS NATIONAL NET LEASE GROUP.

17 SRS GLOBAL STATS 800+ PROPERTIES CURRENTLY REPRESENTED 600+ CLIENTS REPRESENTED IN 2016 $2.6B* TRANSACTION VALUE 20+ OFFICES *STATISTICS ARE FOR BROKERS, PROFESSIONALS, AND STAFF #1 LARGEST REAL ESTATE FIRM EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.