TOWN CENTER A VALUE-ADD 335,000 SF COMMUNITY CENTER IN AN AFFLUENT SOUTHERN CALIFORNIA LOCATION Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, California License Number 01385740.
TOWN CENTER The Opportunity HFF is pleased to offer the opportunity to acquire Murrieta Town Center Shopping Center (the Property ), a value-add 334,939 square-foot community center located in the highly affluent Southern California community of Murrieta. Currently 81% leased, the Property is anchored by Burlington, Rite Aid, Ross, Marshalls, Famous Footwear, Dollar Tree, and Sizzler as well as a synergistic mix of quick service restaurants and necessity retail. Murrieta Town Center offers investors the chance to acquire a well-located retail center with premier national credit tenancy and significant value enhancement opportunity through the lease up of available space and future redevelopment potential. Property Summary Address: 39815-39885 Alta Murrieta Drive & 40461-40489 Murrieta Hot Springs Road Murrieta, CA 92563 Occupancy: 81.0% (including pending lease) Owned GLA: 334,939 sf Site Size: 32.47 acres Parking: 2,037 spaces (6.08 per 1,000 sf) Year Built: 1990 Traffic Count: Over 91,000 cars per day (I-215) Frontage: Over 2,000 feet of direct freeway frontage 2
TENANT SIZE LEASE EXP. Burlington 77,279 Apr-19 Toys R Us (NAP) 45,378 Oct-41 Rite Aid 27,465 Sep-20 Ross 26,250 Jan-26 Marshalls 21,000 Nov-26 Dollar Tree 10,296 Sep-20 Sizzler 8,000 Dec-20 Famous Footwear 6,502 Nov-26 Del Taco 1,872 Apr-19 Investment Highlights INCOME SECURITY with more than 64% of the Property s GLA leased to national credit tenants. (through 2026) (through 2027) (through 2026) STABLE IN-PLACE CASH FLOW provides attractive leveraged double-digit current yields with several value creation opportunities to enhance returns going forward.
RECENT LEASING MOMENTUM at the Property with 4 new leases totaling over 32,000 square feet executed in the last 12 months. The center has recently added Marshalls, Famous Footwear and Miracle Ear, confirming the center as a dominant location for national names. FUTURE REDEVELOPMENT OPPORTUNITY for the 32.5 acre site located in the heart of Murrieta s commercial corridor. Exceptional freeway accessibility, an attractive basis, and the development-friendly municipality all make this asset an excellent covered land play with current cash flow and upside through future redevelopment potential. IMMEDATE VALUE CREATION OPPORTUNITY through the lease up of available space, the ability to add future pad sites and additional GLA, and increasing existing tenants to market rents. STRATEGICALLY LOCATED at the intersection of Interstate 215 (over 91,000 cars per day) and Murrieta Hot Springs Road (over 74,800 cars per day), one of the busiest thoroughfares in the trade area. The Property is directly across the street from the Rancho Springs Medical Center (252-bed Regional Hospital), Walgreens and a DICK S Sporting Goods and Sam s Club anchored shopping center. NOI GROWTH OF MORE THAN 69% Over the next 10 Years $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 NOI GROWTH 69% Growth Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 4
PROMINENT FREEWAY VISIBILITY with over 2,000 square feet of frontage and two large pylon signs on Interstate 215 in addition to direct freeway on and off ramp access to 91,000+ vehicles per day. AFFLUENT TRADE AREA with average household incomes exceeding $103,000 in the City of Murrieta. EXCEPTIONAL POPULATION GROWTH in Murrieta where the population has more than doubled since 2000. Population growth over the next 4 years is expected to be over 8%. EXPLOSIVE RESIDENTIAL DEVELOPMENT with more than 3,600 residential units planned, under construction, or in lease-up/sell-out in the city of Murrieta. 70% OF LEASED GLA OCCUPIED BY NATIONAL RETAILERS DEMOGRAPHICS 1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS 2016 Population 14,254 104,149 190,664 Population Growth 2016-2021 5.78% 8.63% 8.35% 2016 Est. Average Household Income $76,725 $83,588 $88,679
SIERRA VISTA PLAZA SILVERADO LUXURY APARTMENTS (492 UNITS) RANCHO SPRINGS MEDICAL CENTER (252-BED REGIONAL HOSPITAL) RANCHO LAS BRISAS APARTMENTS (200 UNITS) CROSSROADS CORPORATE CENTER (75,000+ SF) 2,000 FEET OF FREEWAY FRONTAGE UNIVERSITY OF PHOENIX I-215 (91,000 VPD) (NAP) OVER 32,500 HOMES AND 113,000 RESIDENTS WITHIN A 3-MILE RADIUS OF THE PROPERTY TOWN CENTER DIRECT FREEWAY ACCESS - ON/ OFF RAMP DIRECT OFF RAMP MURRIETA HOTSPRINGS ROAD (74,800 CPD) 6
1-A02 1-A01 2-B03 2-B04 Murrieta, CA Overview 215 2-B08 2-B09 2-B10/11 2-B14/15 Affluent Demographics The City of Murrieta boasts an average household income in excess of $103,000, almost double the national average. 2-B19 2-B20 Ideal Location Proximity to major southern California employment centers: San Diego (+/-40 miles) Orange County (+/-50 miles) Los Angeles (+/-80 miles) NAP 2-G01 (NAP) 2-H01 2-D01 2-C05 Health and Life Sciences Industries Providing an economic foundation and creating jobs Loma Linda University Medical Center employs over 9,000 people Brand new Kaiser Permanente Hospital Under Construction - 854,000 SF, 254-bed regional hospital Rancho Springs Medical Center located less than 1-mile from the Property - 252-bed regional hospital Top life sciences and health technology companies including Abbott Vascular and Golden West Biologics are based in Murrieta and Temecula 2-F01 1-E0A 1-E0B 1-E0C 1-D01 ALTA MURRIETA DR LEGEND AVAILABLE OCCUPIED Desirable Quality of Life Location Murrieta, CA boasts an attractive lifestyle, excellent school system, and quality housing that is affordable relative to expensive coastal markets. 215 1-D06 1-D08/09 1-G03 1-G04 Excellent School System 97%+ Graduation Rate at Murrieta High Schools Murrieta was ranked as the #2 safest city in America by the FBI and USA Today 1-C01 1-B06 1-B05 1-B02 1-01 1-J01 1-A01 MURRIETA HOT SPRINGS RD
TOWN CENTER Investment Advisors BRYAN LEY Managing Director 310.407.2120 bley@hfflp.com CA License #01458927 JUSTIN KUNDRAK Associate 310.407.2145 jkundrak@hfflp.com CA License #01994398 GLEB LVOVICH Managing Director 949.798.4115 glvovich@hfflp.com CA License #01496699 BRENNAN WISE Real Estate Analyst 310.407.2180 bwise@hfflp.com CA License #02021893 Debt Advisor STEVEN PASKOVER Associate Director 310.407.2134 spaskover@hfflp.com CA License #01936051 Local Leasing Contact BRIAN BIELATOWICZ Lee & Associates 951.445.4515 bbielatowicz@lee-associates.com CA License #1269887 HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.