VILLAGE AT DOS VIENTOS

Transcription

1 VILLAGE AT DOS VIENTOS 330 VIA LAS BRISAS, THOUSAND OAKS, CA OFFERING MEMORANDUM

2 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Village at Dos Vientos located at 330 Via Las Brisas, Thousand Oaks, CA ( Property ). It has been prepared by Matthews Retail Group. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Group. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Group expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Group or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Matthews Retail Group

3 Table of Contents EXCLUSIVELY LISTED BY: PRICING & FINANCIAL ANALYSIS Investment Overview... 2 Investments Highlights... 2 Executive Summary... 3 PROPERTY DESCRIPTION Physical Description... 6 Tenant Map... 8 Regional Map... 9 Birds Eye Site Plan DEMOGRAPHICS City Overview Thousand Oaks, CA Demographics Report Patrick Toomey Managing Partner DIRECT MOBILE patrick.toomey@matthewsretailgroup.com License No Kyle B. Matthews, CCIM Chairman & CEO DIRECT MOBILE kyle.matthews@matthewsretailgroup.com License No

4 Matthews Retail Group OFFERING MEMORANDUM Village at Dos Vientos

5 Pricing & Financial Analysis

6 Investment Overview High Quality Southern California Trophy Retail Asset The Village At Dos Vientos is a 56,707 SF high-quality construction multi-tenant retail center situated in the aflluent Newbury Park area of Thousand Oaks, CA and is leased to a synergistic mix of restaurant, retail and service retail tenants Nearly 40% of the GLA of The Village At Dos Vientos is on leases 5 years or longer; 23% of the GLA is on leases over 9 years Tenants representing 19% of the GLA of The Village At Dos Vientos have been at this location over 5 years Established Cash Flow With Strong Income Growth The Village At Dos Vientos is 88% leased, with several tenants on gross leases, affording the new owner to greatly improve Net Operating Income through leaseup and converting leases to NNN on renewal The 88% occupancy factor combined with the gross leases will cause this asset to trade significantly below its land-inclusive replacement cost Competing properties in this market are trading nearly twice as much on a price PSF basis Excellent Suburban Retail Location The Village At Dos Vientos enjoys excellent visibility and more than 500 linear feet of frontage along Via Las Brisas Exceptionally Affluent Southern California Demographics More than 8,200 people in a 1-mile radius with Average Household Incomes exceeding $176,575 More than 30,500 people in a 3-mile radius with an Average Household Incomes exceeding $136,900 More than 88,900 people in a 5-mile radius with an Average Household Income of $120,200 Average household income in the city of Newbury Park is nearly $130,000 in a city of nearly 49,000 Pride of Ownership & Ideal 1031 Exchange Replacement Property Delivered free and clear of debt permitting an investor to purchase for cash or with new financing at desired LTV and terms Synergistic tenant mix with national brands and local favorites catering to the specific demands of the local customer High-quality retail center with timeless Mission-style architecture built in 2007 Will trade at a significant discount to original construction cost, and to a land-inclusive replacement cost Strong co-tenancy with the adjacent Miller Family YMCA and adjacent Sycamore Canyon School, providing additional draw to the property during all day parts Desirable location in an affluent Ventura County enclave limits future competition from new construction or redevelopment; developable commercial land is scarce due to the topography of the trade area Located adjacent to Sycamore Canyon School with 1,460 students, and designated as a California Distinguished School P. 2 Matthews Retail Group OFFERING MEMORANDUM Village at Dos Vientos

7 Executive Summary VILLAGE AT DOS VIENTOS 330 VIA LAS BRISAS THOUSAND OAKS, CA List Price...$12,500,000 Gross Leasable Area... 56,707 SF Price/SF...$220 CAP Rate - Current % CAP Rate - Stabilized % Occupancy... 88% Year Built Lot Size Acres Annualized Operating Data Income Current Pro Forma* Base Rental Revenue $976,268 $961,794 Absorption & Turnover Vacancy (134,343) (32,768) Scheduled Base Rental Revenue 841, ,026 CPI & Other Adjustment Revenue 11,908 40,865 Expense Reimbursements 253, ,079 Other Income 10,000 10,609 Total Potential Gross Revenue 1,117,053 1,338,579 General Vacancy (5%) 0 (35,269) Total Effective Gross Revenue 1,117,053 1,303,310 Operating Expenses Common Area Maintenance 218, ,276 Property Insurance 8,506 9,024 Management Fee 33,512 39,099 Real Estate Taxes 132, ,442 Total Operating Expenses 392, ,841 Net Operating Income $724,930 $886,469 *Pro Forma is based on year 3 of the 10 year financial analysis. Village at Dos Vientos OFFERING MEMORANDUM Matthews Retail Group P. 3

8 Assumptions Property Timing Start of Analysis January 2016 End of Analysis December 2026 Analysis Period 10 Years Property Operating Parameters Growth Rates: Market Rents 3% Operating Expenses 3% Real Estate Taxes 2% Capital Reserves 3% CPI 3% General Vacancy: Year 1 5% Thereafter 5% MARKET LEASING ASSUMPTIONS Shop Spaces Renewal Probability 75% Market Rent (SF/YR) $15 Downtime 3 Months Tenant Improvements $10/SF new $2/SF renew Leasing Commissions 6% new 3% renew Rent Escalation 3% Annual Lease Term 5 Years Lease Type NNN MARKET DEBT ASSUMPTION LTV 70% Interest Rate 4.00% Amortization 360 Months Term 5 Years Loan Fee 1% Market debt assumption based on recent debt quote obtained by ownership and is subject to change with market conditions and sponsor creditworthiness and experience, among other things. For a current debt quote and market discussion, please contact Brian Krebs of Barrington Capital at (818) P. 4 Matthews Retail Group OFFERING MEMORANDUM Village at Dos Vientos

9 Schedule of Prospective Cash Flow EFFECTIVE GROSS REVENUE Year 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 $ / SF Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Base Rental Revenue $17.22 $976,268 $963,543 $961,794 $1,002,351 $1,034,051 $1,056,801 $1,118,181 $1,213,503 $1,247,055 $1,305,122 $1,344,286 Absorption & Turnover Vacancy ($2.37) (134,343) (73,491) (32,768) (19,117) (6,472) (10,560) (68,518) (48,541) (59,838) (20,200) (6,984) Scheduled Base Rental Revenue $ , , , ,234 1,027,579 1,046,241 1,049,663 1,164,962 1,187,217 1,284,922 1,337,302 CPI & Other Adjusted Revenue $ ,908 32,437 40,865 46,594 56,735 67,097 69,489 59,330 45,782 3,713 0 Expense Reimbursement Revenue $ , , , , , , , , , , ,226 Other Income $ ,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 13,439 Total Potential Gross Revenue $ ,117,053 1,220,934 1,338,579 1,435,383 1,513,620 1,553,136 1,557,931 1,699,764 1,715,163 1,798,115 1,866,967 General Vacancy $ (35,269) (53,062) (68,970) (67,045) (12,207) (38,259) (28,279) (70,063) (86,042) TOTAL EFFECTIVE GROSS REVENUE $ ,117,053 1,220,934 1,303,310 1,382,321 1,444,650 1,486,091 1,545,724 1,661,505 1,686,884 1,728,052 1,780,925 OPERATING EXPENSES Common Area Maintenance $ , , , , , , , , , , ,974 Property Insurance $0.15 8,506 8,761 9,024 9,295 9,574 9,861 10,157 10,461 10,775 11,098 11,431 Management Fee $ ,512 36,628 39,099 41,470 43,339 44,583 46,372 49,845 50,607 51,842 53,428 Real Estate Taxes $ , , , , , , , , , , ,035 TOTAL OPERATING EXPENSES $ , , , , , , , , , , ,868 NET OPERATING INCOME $ , , , ,151 1,003,381 1,033,070 1,080,120 1,181,339 1,194,564 1,222,793 1,262,057 LEASING & CAPITAL COSTS Tenant Improvements $ ,338 85, ,326 72,475 37,963 29, , , , ,711 24,056 Leasing Commissions $0.15 8,698 24,511 50,142 17,961 12,753 8,442 57,359 80,879 54,262 49,034 6,896 TOTAL LEASING & CAPITAL COSTS $ , , ,468 90,436 50,716 37, , , , ,745 30,952 CASH FLOW $12.10 $685,894 $706,274 $649,001 $862,715 $952,665 $995,182 $821,164 $780,447 $939,645 $1,014,048 $1,231,105 Village at Dos Vientos OFFERING MEMORANDUM Matthews Retail Group P. 5

10 Schedule of Leveraged Prospective Cash Flow PROPERTY CASH FLOW Initial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 1/1/2016 Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Revenue $1,117,053 $1,220,934 $1,303,310 $1,382,321 $1,444,650 $1,486,091 $1,545,724 $1,661,505 $1,686,884 $1,728,052 Operating Expense (392,123) (404,676) (416,841) (429,170) (441,269) (453,021) (465,604) (480,166) (492,320) (505,259) NET OPERATING INCOME 724, , , ,151 1,003,381 1,033,070 1,080,120 1,181,339 1,194,564 1,222,793 Capital Expense (39,036) (109,984) (237,468) (90,436) (50,716) (37,888) (258,956) (400,892) (254,919) (208,745) Property Cash Flow 685, , , , , , , , ,645 1,014,048 Funded Capital Expense FUNDED PROPERTY CASH FLOW 685, , , , , , , , ,645 1,014,048 DEBT SERVICE Senior Interest (347,195) (340,917) (334,384) (327,584) (320,507) (313,142) (305,477) (297,499) (289,196) (280,556) Senior Principal (154,091) (160,369) (166,902) (173,702) (180,779) (188,144) (195,809) (203,787) (212,090) (220,731) CASH FLOW AFTER DEBT SERVICE 184, , , , , , , , , ,762 NET FINANCING Acquisition/Disposition (12,500,000) ,368,159 Assumption of Existing Debt 0 Loan Maturity Loan Prepayment (6,893,596) New Loan Funding 8,750, Loan Fees (87,500) CASH FLOW AFTER FINANCING (3,837,500) $184,608 $204,988 $147,715 $361,429 $451,379 $493,896 $319,878 $279,161 $438,359 $5,987,324 LEVERAGED YIELD Leveraged Cost Basis 12,587,500 12,626,536 12,736,520 12,973,988 13,064,424 13,115,140 13,153,028 13,411,984 13,812,876 14,067,795 14,276,540 Cumulative Equity 3,837,500 4,030,627 4,300,979 4,705,350 4,969,488 5,200,983 5,427,015 5,881,780 6,486,459 6,953,468 7,382,944 LEVERAGED YIELD (On Initial Equity) 8.84% (Avg) 4.81% 5.34% 3.85% 9.42% 11.76% 12.87% 8.34% 7.27% 11.42% 13.36% P. 6 Matthews Retail Group OFFERING MEMORANDUM Village at Dos Vientos

11 IRR Tracking Unleveraged IRR Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Dec-2015 Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Resale Amount Gross Proceeds from Sale $12,500,000 $12,875,000 $13,261,250 $13,659,088 $14,068,860 $14,490,926 $14,925,654 $15,373,423 $15,834,626 $16,309,665 Net Proceeds From Sale $12,125,000 $12,488,750 $12,863,413 $13,249,315 $13,646,794 $14,056,198 $14,477,884 $14,912,220 $15,359,587 $15,820,375 Unleveraged Annual IRR 6.58% 7.81% 8.22% 8.70% 9.24% 8.94% 8.87% 8.91% Village at Dos Vientos OFFERING MEMORANDUM Matthews Retail Group P. 7

12 Rent Roll Tenant Suite Lease Start Lease End SF PSF Rent Recovery Method Village Trader /1/12 10/31/22 6,374 $11.40 $72,660 Net Fitness Together A 3/1/08 9/30/17 1,866 $15.27 $28,500 Net Village Trader B 2/1/12 10/31/ $0.00 $0.00 None Oaks Optometric /1/15 3/31/25 2,399 $18.00 $43,188 Net Tae Kwon Do A 8/1/15 7/31/20 2,300 $12.00 $27,600 Net Vacant B 6/1/17 5/31/ $9.01 None Dye Bar /1/13 1/31/18 1,537 $15.60 $23,976 Net Cleaners /1/08 4/30/18 1,740 $27.81 $48,384 Net Exceptional Preschool (exp) /1/14 10/31/24 2,151 $15.00 $32,268 Net Exceptional Preschool /1/15 10/31/24 4,240 $15.00 $63,600 Net Chabad Newbury Park /1/11 5/31/18 1,699 $15.00 $25,488 None New Beginnings /1/14 5/31/19 2,336 $12.00 $28,032 Net Conejo Valley Practice /1/12 3/31/ $16.79 $13,620 None Winston Dos Vientos B 1/1/12 2/28/ $18.01 $14,604 Net Vacant /1/17 5/31/22 1,558 $18.00 Net Krave Frozen Yogurt /1/13 2/28/17 1,056 $12.00 $12,672 Net Dr Chaffee /1/07 4/30/18 1,470 $35.57 $52,284 None Worldwide Supply /1/16 12/31/ $24.00 $11,736 Net HM Medical Billing /1/15 9/30/18 1,533 $13.20 $20,232 None Tomasi /1/15 5/31/ $13.20 $4,632 None Vacant /1/17 5/31/22 1,112 $18.00 Net Consolidated Electric Dist C 10/1/11 9/30/ $23.60 $14,160 None JT Engineering /1/15 5/31/ $15.79 $9,600 None Cross Creek /1/12 4/30/ $22.00 $13,020 Net P. 8 Matthews Retail Group OFFERING MEMORANDUM Village at Dos Vientos

13 Tenant Suite Lease Start Lease End SF PSF Rent Recovery Method Giogio Perangeli The Villa /1/14 5/31/24 4,300 $23.02 $99,000 Net happy Mothers /1/14 8/31/16 1,004 $18.54 $18,612 Net Vacant /1/17 5/31/22 2,826 $12.00 Net Coffee Shop /1/10 6/30/17 1,414 $20.06 $28,368 Net Cadence Research /1/12 6/30/17 1,212 $17.82 $21,600 None Possibilideas B 10/1/14 10/31/19 1,245 $13.20 $16,440 None Insurance Tech /1/12 12/31/17 3,083 $17.25 $53,184 None Red Coral Sushi /1/08 12/31/18 1,980 $26.22 $51,924 Net Vac-BOMA pick up* Var 6/1/17 5/31/ $18.00 Net TOTAL 56,707 $856,248 Vacant 6, % * Seller estimates that approximately 522 SF can be picked up on new leases as they roll based on BOMA measurements of the building. Buyer to verify. Village at Dos Vientos OFFERING MEMORANDUM Matthews Retail Group P. 9

14 Property Description

15 Physical Description THE OFFERING Property Name... Village at Dos Vientos Property Address Via Las Brisas Thousand Oaks, CA Assessor s Parcel Number SITE DESCRIPTION Number of Stories... Two Year Built Gross Leasable Area (GLA)... 56,707 SF Lot Size Acres Type of Ownership... Fee Simple Parking... Approx. 300 spaces Parking Ratio...Approx. 5:1,000 SF Landscaping...Professional Topography... Level CONSTRUCTION Foundation...Concrete Slab Framing... Wood Exterior...Painted Stucco Parking Surface... Asphalt Roof...Peaked, Tile P. 11 Matthews Retail Group OFFERING MEMORANDUM Village at Dos Vientos

16 Village at Dos Vientos OFFERING MEMORANDUM Matthews Retail Group P. 12

17 Tenant Map P. 13 Matthews Retail Group OFFERING MEMORANDUM Village at Dos Vientos

18 Regional Map Village at Dos Vientos OFFERING MEMORANDUM Matthews Retail Group P. 14

19 Birds Eye P. 15 Matthews Retail Group OFFERING MEMORANDUM Village at Dos Vientos

20 Site Plan Village at Dos Vientos OFFERING MEMORANDUM Matthews Retail Group P. 16

21 P. 17 Matthews Retail Group OFFERING MEMORANDUM Village at Dos Vientos

22 Demographics

23 City Overview Thousand Oaks, CA The City of Thousand Oaks is a premiere community recognized for being one of the most desirable places in all of California to live, work, recreate, and raise a family. Located in between Los Angeles and Santa Barbara in Ventura County, Thousand Oaks is nestled against the Santa Monica Mountains and with over 15,000 acres of natural publicly owned open space located within the City s boundaries. The City is 56 sq miles with a population of 129,349. The City prides itself on its open space with 75 miles of trails for hiking, biking, or just leisurely walking. While this natural acreage gives our community the best of nature, another source of pride is the Civic Arts Plaza. Opened in 1994, this jewel of cultural arts has become a beacon for our region featuring world-class entertainment, musicals, concerts, children s shows, ballets, and much more. Another world class event that City is proud to be a part of is the Amgen Tour of California. Thousand Oaks has served as host to the final stages of this international cycling race on several occasions. The Amgen Tour of California is the nation s largest and most recognized cycling event. Thousand Oaks values collaboration with residents and businesses. This commitment to public-private partnerships is most evident in the adoption of the City s blueprint for a revitalized downtown, the Thousand Oaks Boulevard Specific Plan. Some of the City s most impressive accomplishments have come in the realm of infrastructure improvements. Public infrastructure enhances quality of life, and ensures the mobility of residents and businesses, now and in the future. Thousand Oaks also strives to be a steward of the environment. Their efforts at local electricity generation have also been very successful, especially at our wastewater treatment plant. Thousand Oaks is a family-oriented community of 128,000, and the base of several thousand companies who provide over 70,000 jobs. It is also home to excellent schools, outstanding parks, and a myriad of shopping opportunities, including the largest auto mall in the nation. P. 19 Matthews Retail Group OFFERING MEMORANDUM Village at Dos Vientos

24 Demographics Report Population 1-Mile 3-Mile 5-Mile Estimated Population (2015) 8,011 29,536 86,004 Projected Population (2020) 8,298 30,552 88,915 Census Population (2010) 7,925 29,316 84,695 Census Population (2000) 3,129 23,287 68,188 Projected Annual Growth ( ) 287 1,015 2,910 Historical Annual Growth ( ) ,310 Historical Annual Growth ( ) 4,796 6,029 16,506 Households Estimated Households (2015) 2,521 10,027 30,651 Projected Households (2020) 2,602 10,348 31,635 Census Households (2010) 2,494 9,954 30,183 Census Households (2000) 1,080 8,041 24,728 Projected Annual Growth ( ) Historical Annual Change ( ) 1,440 1,985 5,923 Income HH Income $200,000 or More 30.6% 18.6% 14.3% HH Income $150,000 to $199, % 16.0% 12.5% HH Income $125,000 to $149, % 9.5% 8.5% HH Income $100,000 to $124, % 12.7% 13.0% HH Income $75,000 to $99, % 12.8% 13.6% HH Income $50,000 to $74, % 9.1% 11.9% HH Income $35,000 to $49, % 8.9% 10.3% HH Income $25,000 to $34, % 5.1% 5.8% HH Income $15,000 to $24, % 3.5% 5.1% HH Income $10,000 to $14, % 1.8% 2.8% Average Household Income (2015) $176,575 $136,957 $120,253 Median Household Income (2015) $157,563 $118,023 $100,178 Village at Dos Vientos OFFERING MEMORANDUM Matthews Retail Group P. 20

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26 VILLAGE AT DOS VIENTOS 330 Via Las Brisas Thousand Oaks, CA OFFERING MEMORANDUM Patrick Toomey Managing Partner DIRECT MOBILE License No Kyle B. Matthews, CCIM Chairman & CEO DIRECT MOBILE License No Matthews Retail Group 841 Apollo Street, Suite 150 El Segundo, CA