Single Tenant ABSOLUTE NNN INVESTMENT OPPORTUNITY Huntington Park, CA
TABLE OF CONTENTS 2 CONTENTS INVESTMENT SUMMARY... 3 HIGHLIGHTS... 4 PROPERTY DESCRIPTION... 5 AERIAL VIEW & SITE PLAN... 6 AREA OVERVIEW... 11 RENT ROLL... 12 PRICING SUMMARY... 13 EXCLUSIVELY MARKETED BY MATTHEW MOUSAVI Managing Principal SRS National Net Lease Group 610 Newport Center Drive, Suite 400 Newport Beach, CA 92660 DL: 949.698.1116 M: 714.404.8849 Matthew.Mousavi@srsre.com CA License No. 01732226 PATRICK R. LUTHER, CCIM Managing Principal SRS National Net Lease Group 610 Newport Center Drive, Suite 400 Newport Beach, CA 92660 DL: 949.698.1115 M: 480.221.4221 Patrick.Luther@srsre.com CA License No. 01209944 MATTHEW G. HARDKE First Vice President 610 Newport Center Drive, Suite 400 Newport Beach, CA 92660 DL: 949.698.1106 M: 949.929.0558 Matt.Hardke@srsre.com License No. 01946266 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.
INVESTMENT SUMMARY 3 STAR WORLD - HUNTINGTON PARK, CALIFORNIA SRS National Net Lease Group is pleased to present the opportunity to acquire the leasehold interest (building only) in a corporate guaranteed, single tenant, absolute NNN leased, Star World, located in located in Huntington Park, CA. The tenant, Star World, Inc., executed a 10-year lease with 3 (5-year option periods) in 2015. The lease has 9 years remaining and features a 10% rental increase in 2021 and at the beginning of each option period, which generates NOI growth and hedges against inflation. Star World is located at the signalized, hard corner intersection of Pacific Boulevard and Randolph Street (27,000 combined vehicles per day) with excellent visibility and accessibility. Along with Superior Grocers, Star World is a co-anchor to the shopping center it is located in. This shopping center features national tenants including Wells Fargo, In-N-Out, Subway, Jamba Juice, creating strong tenant synergy and crossover traffic. The site is located in a retail corridor with tenants including 99 Cent Only, Walgreens, CVS Pharmacy, Pep Boys, McDonald s, Jack in the Box, and more. The site is located in an extremely dense trade area supported by over 1.1 million residents ($43,500 AHHI) and 470,000 employees. OFFERING Pricing: $7,543,000 Net Operating Income: $528,000 Cap Rate: 7.00% Guaranty: Lease Type: Landlord Responsibilities: PROPERTY SPECIFICATIONS Rentable Area: Land Area: Property Address: Corporate Abs. NNN None 30,360 SF 0.92 Acres Year Built / Remodeled: 2002 / 2015 6054 Pacific Boulevard, Huntington Park, CA 90255 Parcel Number: 6320-012-073 Ownership: Leasehold (Building Only)
HIGHLIGHTS 4 New Retail Concept / Strong Local Demand Star World is a new retail concept catering to the growing U.S. Hispanic market Company offers financial services to under-banked consumers Ideal demographic makeup for Star World products and services in the immediate trade area Brand New Long-Term Corporate Guaranteed Lease Star World Inc., corporate guaranteed lease with 9-years remaining 10% rental increase in 2021 and at the beginning of each option period Absolute NNN Lease / Leasehold Ownership / Zero Responsibilities Tenant pays for all CAM, insurance, taxes, and maintains all aspects of the building No landlord responsibilities Ideal, management-free investment for an out of state, passive investor Anchor To Shopping Center / Adjacent to Superior Grocers Along with Superior Grocers, Star World is a co-anchor to the shopping center it is located in Tenants in the shopping center include Wells Fargo, In-N-Out, Subway, and more Excellent tenant synergy with crossover traffic Extremely Dense Demographics Within 5-Mile Trade Area Over 1.1 million residents and 470,000 employees support the trade area $43,500 average household income Signalized, Hard Corner Intersection / Excellent Visibility At signalized, hard corner intersection of Pacific Boulevard and Randolph Street (27,000 combined VPD) with excellent visibility and accessibility Pacific Boulevard is one of the major thoroughfares for the City of Huntington Park Convenient access Regional Retail Corridor / Diverse Trade Area With National Tenants Situated in retail corridor with national tenants such as CVS Pharmacy, Walgreens, Pep Boys, Firestone, 99 Cents Only, Enterprise, Chase, Bank of America, McDonald s, and more
PROPERTY DESCRIPTION 5 PROPERTY DESCRIPTION PARCEL Parcel: 6320-012-073 Acres: 0.92 Square Feet: 40,075 SF ZONING CG: Commercial General ACCESS There are two (2) access points with one (1) along Pacific Boulevard and one (1) along Randolph Street. TRAFFIC COUNTS Pacific Boulevard:...18,100 Randolph Street:...8,900 IMPROVEMENTS There is approximately 30,360 SF of existing building area. PARKING There are approximately 53 parking spaces on the owned parcel. The parking ratio is approximately 1.75 per 1,000 SF of leasable area. YEAR BUILT / REMODELED 2002 / 2015
AERIAL VIEW 6
AERIAL VIEW 7
PHOTOS 8 REPRESENTATIVE PHOTO
LOCATION MAP 9 LOS ANGELES HUNTINGTON PARK 2015 ESTIMATED POPULATION 3 Mile...420,924 5 Mile...1,136,546 2015 AVERAGE HOUSEHOLD INCOME 3 Mile...$43,993 5 Mile...$43,469 2015 ESTIMATED TOTAL EMPLOYEES 3 Mile...121,971 5 Mile...469,518 ANAHEIM LONG BEACH
SITE PLAN 10 Pacific Blvd 18,100 VPD Randolph St 8,900 VPD
AREA OVERVIEW 1 1 CITY OF HUNTINGTON PARK Huntington Park, located in Los Angeles County is a city with a rich history and vibrant community with a population of over 58,000. According to the United States Census Bureau, the city has a total area of 3.0 square miles all land. Cities surrounding Huntington Park include Bell, Cudahy, Los Angeles, Maywood, South Gate, and Vernon. In addition unincorporated areas, including Florence-Graham and Walnut Park, are adjacent to Huntington Park. Cities surrounding Huntington Park include Bell, Cudahy, Los Angeles, Maywood, South Gate, and Vernon. In addition unincorporated areas, including Florence-Graham and Walnut Park, are adjacent to Huntington Park.90t DEMOGRAPHICS 1 Mile 3 Miles 5 Miles 2015 Estimated Population 41,194 420,924 1,136,546 2020 Projected Population 42,018 431,854 1,167,953 2010 Census Population 40,807 412,201 1,108,850 2000 Census Population 42,295 406,177 1,070,965 Projected Annual Growth 2015 to 2020 0.40% 0.51% 0.55% Historical Annual Growth 2010 to 2015 0.18% 0.40% 0.47% 2015 Estimated Households 10,593 97,979 288,211 2020 Projected Households 10,811 100,528 297,667 2010 Census Households 10,497 96,228 280,016 2000 Census Households 10,488 94,156 264,563 Projected Annual Growth 2015 to 2020 0.41% 0.51% 0.65% Historical Annual Growth 2010 to 2015 0.17% 0.34% 0.55% 2015 Estimated White 49.64% 42.70% 38.95% 2015 Estimated Black or African American 0.89% 6.56% 12.06% 2015 Estimated Asian or Pacific Islander 0.76% 0.51% 2.26% 2015 Estimated American Indian or Native Alaskan 1.55% 1.00% 0.94% 2015 Estimated Other Races 43.30% 45.19% 41.80% 2015 Estimated Hispanic 97.37% 91.63% 82.40% 2015 Estimated Average Household Income $45,326 $43,993 $43,469 2015 Estimated Median Household Income $32,762 $32,547 $31,272 2015 Estimated Per Capita Income $11,744 $10,318 $11,481 2015 Estimated Total Businesses 2,116 11,188 42,078 2015 Estimated Total Employees 21,770 121,971 469,518
RENT ROLL 1 2 Star World Starbucks Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates regardless in four segments: of immigration Americas, status or Europe, lack of Africa, credit history, and China/Asia and embrace Pacific. the Starbucks opportunity stores presented offer coffee by the and unprecedented tea beverag- Star World is a new retail concept focused on providing goods and services specifically tailored to the exponentially growing U.S. Hispanic market. The company offers financial services to under-banked consumers who cannot easily access them, recent changes in the retail landscape. Evolving consumer behaviors es, packaged and expectations, roasted whole floods bean of new and players ground relentlessly coffees, and driving other up bottled competition, beverages. and rapid Its stores technological also provide advancements fresh food are dramatically reshaping the industry faster than some retailers offerings can such react as to, pastries, requiring breakfast uncomfortable sandwiches, restructuring and and lunch operational items. As modifications. of August 27, 2015, Starbucks operates 21,000 stores. Starbucks was founded in 1985 and is headquartered in Seattle, Washington. Star World Tenant Name Square Feet Lease Start Lease End Begin Monthly Annually Recovery Type Options: 3 (5-year) Star World, Inc. 30,360 8/1/2015 7/31/2025 Current $26,250 $315,000 Abs. NNN Option 1: $762,300/Yr (corporate) Aug 2016 $52,500 $630,000 Option 2: $838,530/Yr Aug 2021 $57,750 $693,000 Option 3: $922,383/Yr Ground Lease Tenant Name Square Feet Lease Start Lease End Begin Monthly Annually Recovery Type Options: 2 (5-year) Huntington Park 30,360 1/1/2002 1/1/2042 Current $8,500 $102,000 Abs. NNN Real Estate, LLC Jan 2018 $9,350 $112,200 Jan 2023 $10,285 $123,420 Jan 2028 $11,314 $135,762 Jan 2033 $12,445 $149,338 Jan 2038 $13,689 $164,272 Ground Lease Notes: 1) Annual rent shall be adjusted by the percentage in the CPI (CPI U Los Angeles-Riverside-Orange County, CA) over the previous 5-year period. The increase shall be no less than 10% and no more than 20% over the preceding 5-year period. 2) Assignment of Lease: Tenant shall have the right to assign the lease or sublet the property, or any portion thereof, subject to Landlord s prior written consent. Consent shall not be unreasonably withheld, conditioned, or delayed.
PRICING SUMMARY 1 3 OPERATING INFORMATION Leasehold Option Gross Potential Rent $630,000 FINANCIAL INFORMATION Price: $7,543,000 Net Operating Income: $528,000 PROPERTY SPECIFICATIONS Address: 6054 Pacific Boulevard, Huntington Park, CA 90255 Year Built / Remodeled: 2002 / 2015 Plus Recapture Abs. NNN Cap Rate: 7.00% Rentable Area: 30,360 SF Effective Gross Income $630,000 Lease Type: Absolute NNN Parcel #: 6320-012-073 Less Ground Rent ($102,000) Less Expenses (Abs. NNN) Net Operating Income: $528,000 Cap Rate 7.00% Sale Price: $7,543,000