6600 LONE TREE BOULEVARD OFFERING MEMORANDUM Single Tenant Net Lease Investment

Transcription

1 6600 LONE TREE BOULEVARD OFFERING MEMORANDUM Single Tenant Net Lease Investment 6600 LONE TREE BOULEVARD, ROCKLIN, CA SALE PRICE: $3,895,000 CAP RATE: 5.88%

2 TABLE OF CONTENTS 03 Investment Overview 11 Parcel Map 04 Offering Summary 12 Market Overview 05 Tenant Overview 13 Area / Location Maps 06 Rent Roll 14 Demographics 07 Property Photos 15 Competition Aerial 09 Site Aerial View 16 Aerial View 10 Site Plan 17 Sales Comparables OFFERING MEMORANDUM

3 INVESTMENT OVERVIEW The subject property offers an investor the opportunity to acquire a true pride-of-ownership, well-located, long-term absolute net lease retail investment property in a densely populated submarket of Sacramento, CA. Scheduled rent increases will provide the new owner with additional upside and cash flow. Rocklin is a city in Placer County, CA, located approximately 22 miles north of Sacramento, California, and about 6.1 miles northeast of Roseville in the Sacramento metropolitan area. The center is located in the geographic center of the Roseville, Rocklin, Lincoln and South Placer County Trade Areas on Rocklin s expanding Highway-65 retail corridor. This ±6,938 Sq. Ft. Skipolini s Pizza and Pasta restaurant building is located on ±1.2 acres in the Blue Oaks Town Center, a Regional shopping center anchored by a 16-screen/2,288 seat Century theater, Petco, Sportsman s Warehouse, RC Willey, Grocery Outlet, Dollar Tree, and Crunch Fitness. INVESTMENT HIGHLIGHTS + + Located in Blue Oaks Town Center a ±600,000 Sq. Ft. Power center anchored by a 16-screen/2,288 seat Century theater, Petco, Sportsman s Warehouse, RC Willey, Grocery Outlet, Dollar Tree, and Crunch Fitness + + New lease with 15-year primary term plus four 5-year options + + Absolute Net lease with no Landlord responsibility + + Tremendous presence at the entrance to Blue Oaks Town Center + + Along the strong Highway 65 Rocklin/Roseville Retail Corridor + + Excellent traffic counts + + Excellent visibility and access via signalized entrance to center + + Strong day and evening population with mid-level to up-scale demographics + + Eight hotels (over 1,200 rooms) in 3-radius of subject property + + Regional draw from Rocklin, Roseville, Lincoln and Antelope, with secondary trade areas of Eastern Sutter and Southern Yuba Counties + + Blue Oaks Town Center is adjacent to a new ±250,000 SF office complex, and over 5 million sq. ft. of office space within a 3-mile radius (either existing, planned or currently in development) OFFERING MEMORANDUM 3

4 OFFERING SUMMARY Offering Price: $3,895, Net Operating Income: $228, Year-1 Capitalization Rate: 5.88% Price per Sq. Ft.: $ Lease Type: Approx. Building Size: Parcel Size: Ownership: Zoning: Use: Absolute Net ±6,938 Sq. Ft. ±1.2 Acres ±52,272 Sq. Ft. Fee Simple Commercial (PD-BP/C/LI) Restaurant Year Built: 2007 Address: 6600 Lone Tree Boulevard City, State: Rocklin, CA APN (Placer County): Terms: All Cash OFFERING MEMORANDUM 4

5 TENANT OVERVIEW SKIPOLINI S PIZZA & PASTA is an award-winning restaurant chain with seven stores located in the Bay Area, Central Valley, and Reno. Skipolini s was founded in 1974 with its first store opening in Clayton, CA and has grown to include locations in Reno, Nevada, Antioch, Concord, Walnut Creek, Folsom, and the subject location in Rocklin, CA. Skipolini s has never closed a restaurant in its 43 years of operation. Skipolini s is a family friendly restaurant featuring inside and outside dining, and a play area for the kids. The company operates seven full-size Skipolini s restaurants Company type: Privately held Company Gross Revenue (2016): $14,430,000 COMPANY FINANCIALS PROVIDED UPON RECEIPT OF AN ACCEPTABLE PURCHASE OFFER AND EXECUTION OF A NON-DISCLOSURE AGREEMENT OFFERING MEMORANDUM 5

6 RENT ROLL Tenant Name Type & Suite Number Lease Dates & Term Floor Sq. Ft. Bldg. Share Rate/Amount per Year per Month Rent Changes on Rent Changes to SKIPOLINI S PIZZA & PASTA Retail 1/10/2017 to 1/9/ Months Options: Four 5-year 6, % $33.00 $228,954 $2.75 $19, /10/2022 1/10/2027 1/10/2032 1/10/2037 1/10/2042 1/10/2047 1/10/2052 $251, $277, $304, $335, $368, $405, $446, Occupied SF Annual Schedule of Net Operating Income TOTAL 6,938 $228,954 OFFERING MEMORANDUM 6

7 PROPERTY PHOTOS OFFERING MEMORANDUM 7

8 OFFERING MEMORANDUM 8

9 98 Rooms SITE 115 Rooms 124 Rooms BLUE OAKS BLVD LONE TREE BLVD FAIRWAY DR OFFERING MEMORANDUM 9

10 SITE PLAN Rocklin 65 Corporate Center Starbucks REDWOOD 6628 BLUE OAKS BLVD SITE LONETREE BLVD ADAMS DR SITE PLAN NOT TO SCALE ALL DIMENSIONS ARE APPROXIMATE. OFFERING MEMORANDUM 10

11 PARCEL MAP SITE MAP NOT TO SCALE OFFERING MEMORANDUM 11

12 MARKET OVERVIEW The city of Rocklin is located in Placer County, California approximately 22 miles northeast of the state capitol Sacramento with a population of approximately 60,500 residents. Rocklin has a regional trade area population of over 300,000 drawing from surrounding areas including Roseville, Lincoln, Antelope, and Auburn. Median age in the city of Rocklin is 37.6 years An affluent population with an Average Household Income of $102,370 Average home value is $438,678 Estimated Annual Population Growth rate over the next 5 years is 1.25% Traffic generators include the 16-screen Century Theater and RC Willey within the Blue Oaks Town Center, and Thunder Valley Casino Resort one of the top grossing Indian casinos in the US Eight hotels within 3-mile radius Staybridge Suites - 98 rooms TownePlace Suites rooms SpringHill Suites rooms Hyatt Place Rooms Homewood Suites rooms Holiday Inn Express - 70 rooms Courtyard rooms Thunder Valley Casino Resort rooms, additional 111 rooms under construction OFFERING MEMORANDUM 12

13 AREA MAP LOCATION MAP CONCEPTUAL SITE PLAN OVERLAY - NOT TO SCALE. SITE SITE MAPS NOT TO SCALE. OFFERING MEMORANDUM 13

14 DEMOGRAPHICS (2016 est.) Population 1-mile radius 9,917 3-mile radius 92,531 5-mile radius 194,171 Average Household Income 1-mile radius $111,138 3-mile radius $103,182 5-mile radius $98,789 Median Household Income 1-mile radius $98,279 3-mile radius $87,101 5-mile radius $80,537 Daytime Employment (3-mile radius) Employees 48,998 Significant Employers (3-mile radius) Employers Hewlett-Packard Thunder Valley Casino & Resort Pride Industries Sutter Roseville Medical Center Kaiser Foundation Hospitals KW Commercial Consolidated Communications Unfi Western Region Division Source: ESRI Traffic Counts Lone Tree (2009) Highway 65 (2015) # Employees 3,000 2,500 2,121 1,500 1, ,700 ADT 73,000 ADT Source: City of Rocklin; Caltrans OFFERING MEMORANDUM 14

15 Thunder Valley Indian Casino ROCKLIN COMPETITION MAP W SUNSET BLVD BLUE OAKS BLVD SITE PA SU FA PLEA S GRO ANT LV VE B IR W AY D N SE T F CI IC ST BL VD R D 2013 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. uld conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. OFFERING MEMORANDUM 15

16 STANFORD RANCH RD PLEASANT GROVE BLVD Sam s Club SITE LONE TREE BLVD FAIRWAY DR Walmart Supercenter BLUE OAKS BLVD OFFERING MEMORANDUM 16

17 SALES COMPARABLES SUBJECT # Property Location Price Size (SF) Price/SF Cap Rate COE 1 MIKUNI 8525 Bond Rd Elk Grove, CA $5,851,000 ±8,600 $ % 11/29/ CHICAGO FIRE PIZZA 7101 Laguna Blvd Elk Grove, CA $3,513,000 ±7,096 $ % 9/21/2016 Location Skipolini s Pizza & Pasta 6600 Lone Tree Blvd Rocklin, CA TWIN PEAKS 535 Howe Ave Sacramento, CA $6,074,500 ±8,798 $ % 8/25/2016 Price $3,895,000 4 OUTBACK STEAKHOUSE 181 N Sunrise Ave Roseville, CA $2,167,000 ±6,472 $ % 5/11/2016 Size (SF) ±6,938 5 ISLANDS BURGERS 1902 Taylor Rd Roseville, CA95661 $4,583,750 ±6,000 $ % 12/7/2015 Price/SF $ CHICAGO FIRE PIZZA 500 N Sunrise Ave Roseville, CA $2,500,000 ±6,650 $ % 9/1/2015 Cap Rate 5.88% OFFERING MEMORANDUM 17

18 AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an Affiliate ) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the Property ) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the Owner ), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners OFFERING MEMORANDUM 18

19 SKIPOLINI S PIZZA & PASTA 6600 LONE TREE BOULEVARD ROCKLIN, CA CONTACT US John Cumbelich x101 john@cumbelich.com Lic Jon Schultz jon.schultz@cbre.com Lic John Cumbelich & Associates 1330 N Broadway, Suite 200A Walnut Creek, CA T CBRE, Inc. 500 Capitol Mall, Suite 2400 Sacramento, CA T