1125 Orange Street Redlands, CA 92374 INVESTMENT OFFERING 1
DISCLAIMER Principals here by advise all prospective purchasers of Single Tenant Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Principals has not and will not verify any of this information, nor has Principals conducted any investigation regarding these matters. Principals make no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a single tenant property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Principals expressly deny any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a single tenant property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any single tenant property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Principals and hold them harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this single tenant property. 2
TABLE OF CONTENTS Table of Contents... 3 Pricing & Financial Analysis... 4 Tenant Summary... 5 Investment & Location Overview... 6 Dollar General - Corporate Description... 7 Aerial, Pictures of Property, Inside Store Pictures... 8-18 Demographics...Will Provide Separately 3
PRICING & FINANCIAL ANALYSIS LOCATION 1125 Orange Street Redlands, CA 92374 ANNUALIZED OPERATING DATA Rent Increases Price $525,000 Year 2018 Year 2019 Year 2020 Year 2021 Annual Rent $24,480.00 $24,969.60 $25,468.92 $25,978.32 Option Periods Rentable Square Feet (Approx.) Price/SF 2,200 SF $238.64 CAP Rate 4.10% Year Built /Renovated Lot Size Type of Ownership 1955 0.412 Acres Fee Simple Based off Future Negotiations Real Estate Taxes Market Rent ½ Tenant Reimbursement Insurance Tenant Responsibility HVAC Maintenance Tenant Responsibility Expenses: HIGHLIGHTS Rental Amounts well below market Intrinsic Real Estate Value Ability to move to market rents in just over four years ½ Real Estate Taxes - Projected Cost @ 1.125% of Purchase Price Net Operating Income Total Return $2,953.12 $21,526.88 4.10% $21,526.88 4
TENANT SUMMARY Tenant Trade Name Ownership Tenant Quick Pick Liquor Store Private Sole Proprietors Lease Type Net Lease Roof and Structure Lease Term Lease Commencement Date Rent Commencement Date Lease Expiration Date Term Remaining on Lease Increases Tenant Responsible 4.00 Years* 12/15/2016 12/15/2016 12/15/2020 4.25 Years Market Rate based on future Fair Market Negotiations Options One, Five-Year Option *Please Request Lease Agreements for further clarification 5
INVESTMENT & LOCATION OVERVIEW Area Highlights 2,200 SF Building 0.416 Acres of Land Low Price per Square Foot One, Five-Year Option Remaining AT FAIR MARKET NEGIOTIATED RENT. Area Highlights In close proximity to Interstate 10 and 271 Other well-known cities near Redlands are Ontario, Riverside, Fontana, and Moreno Valley Redlands Square services the 70,000 person community U.S. average median income of approximately $55,000 University of Redlands' 3,410 student population is within 2 miles U Redlands Passenger Rail Project is in process - The RPRP runs along the existing railroad rightof-way from E Street in San Bernardino east to the City of Redlands, roughly a nine-mile extension of passenger rail service ending at the University of Redlands Local retail includes Subway, Metro PCS, Seven 11, Alberto s Mexican Food, Stater Bros 6
PICTURES OF PROPERTY 7
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ADJACENT PROPERTY 12
PICTURES OF PROPERTY 13
AERIAL 14
AERIAL of Surrounding Retail 15
PICTURE OF PROPERTY 16
For further information, please contact: Sumner Hollingsworth NNN Equity Advisors (626) 353-5597 Cell sumner@nnnequityadvisors.com CA Lic. 01457401 17