A VALUE-ADD GROCERY-ANCHORED SHOPPING CENTER IN SIMI VALLEY, CA Holliday GP Corp. ( HFF ), a California licensed real estate broker, California License #01385740.
BARD LAKE WOOD RANCH GOLF CLUB THE OPPORT UNITY HFF, as exclusive advisor, is pleased to present the exceptional opportunity to acquire Mountaingate Plaza (the Property ), a 281,240 SF value-add Grocery and Drug-anchored community shopping center prominently located at the heavily travelled intersection of SINALOA LAKE 1st Street and East Los Angeles Avenue in Simi Valley, California. The Property s current occupancy allows potential investors to capitalize on the existing leasing momentum SINALOA MIDDLE SCHOOL and achieve strong value-add returns. Mountaingate Plaza is located in the most infill location within the trade area, with over 66,000 average daily traffic (ADT) count between both First Street and E. Los Angeles Avenue. P RO P E RT Y S U M M A RY ADDRESS: 1197-1301 E. Los Angeles Avenue and 2022-2090 First Street Simi Valley, CA 93065 RENTABLE BUILDING AREA: 281,240 IN-PLACE OCCUPANCY: ±80% YEAR BUILT: 1963 / Renov. 1990 / 2002 / 2011 ACRES: 24.78 AC PARKING: 1,359 Spaces (4.83 : 1,000 SF) 2 ROYAL HIGH SCHOOL (2,000+ STUDENTS)
RONALD REAGAN PRESIDENTIAL LIBRARY RONALD REAGAN FWY (105,010 ADT) FIRST STREET (37,000 ADT) E. LOS ANGELES AVENUE (29,000 ADT) DEMOGRAPHICS POPULATION 1-MILE 3-MILE 5-MILE 10-MILE 2023 Projection 11,616 79,495 124,343 368,949 2018 Estimate 11,258 77,398 120,656 358,687 Growth 2018-2023 3.18% 2.71% 3.06% 2.86% HOUSEHOLD 1-MILE 3-MILE 5-MILE 10-MILE 2023 Projection 3,665 25,389 40,626 127,200 2018 Estimate 3,556 24,705 39,443 123,651 Growth 2018-2023 3.07% 2.77% 3.00% 2.87% HOUSEHOLD INCOME 1-MILE 3-MILE 5-MILE 10-MILE 2018 Est. Average $117,517 $125,000 $130,388 $146,244
INVESTMENT HIGHLIGHTS AFFLUENT COMMUNITY WITH A STRONG POPULATION BASE Average household incomes exceed $125,000 with over 79,000 residents within a 3-mile radius of Mountaingate Plaza, demonstrating the strength of the immediate retail trade area. HIGHLY TRAFFICKED INTERSECTION WITH STRONG FREEWAY ACCESS Mountaingate Plaza is located at one of the top intersections in Simi Valley with over 66,000 cars passing the intersection of Los Angeles Avenue and First Street daily. The Property is also the first retail project at 118 Freeway (over 105,000 cars per day) off ramp at First Street when traveling west in the population center of Simi Valley. GROCERY/DRUG ANCHORED SHOPPING CENTER Mountaingate Plaza is anchored by Valley Marketplace and Rite Aid, enhancing the recession resistant daily needs draw at the Property. 4
DRIVE TIMES DESTINATION Downtown Los Angeles Burbank Airport Port Hueneme Los Angeles Int l Airport DRIVE TIME 30 Minutes 30 Minutes 30 Minutes 45 Minutes 5
INVESTMENT HIGHLIGHTS (CONTINUED) TRUE VALUE-ADD OPPORTUNITY WITH SIGNIFICANT UPSIDE Mountaingate Plaza is being sold on in-place income, offering investors the opportunity to add significant value via the lease-up of available space. Ownership is currently in final lease discussions with several tenants, which will immediately grow NOI and increase occupancy during the first year of the hold period. Fully stabilizing the Property will continue to enhance income during a typical hold period with conservative underwriting. RITE AID MARK TO MARKET OPPORTUNITY Rite Aid (19,170 SF) is currently paying a NNN equivalent rent of $0.60/SF/ Month due to a legacy lease dating back to 1962. Rite Aid s lease expires in May 2019 with one 5-year option remaining, allowing investors to mark Rite Aid s rent to market in 2024 or replace Rite Aid with a superior tenant at a higher rent. LOW ANCHOR RENTS Existing Anchor rents property-wide average $0.76 PSF/Month, offering investors embedded value & downside protection as well as potential upside as leases roll to market. 6
PARCELIZATION OPPORTUNITY The Property is situation on eight (8) separate tax parcels, providing investors flexibility to lower their basis or cap arbitrage due to lower cap rates on strip center and net lease investments. STRONG, IN-PLACE LONG-TERM TENANCY Nearly 50% of the in-place NOI is generated by tenants with over 6 years of base lease term remaining, providing stability while potential investors execute the value-add strategy: STRONG SHOP TENANT DEMAND The seven (7) pads as well as inline shops facing 1st Street are virtually all leased with only two (2) of twenty eight (28) spaces available totaling only 2,004 SF within those pads, demonstrating the strong shop tenant SIERRA MEDICAL CENTER (County of Ventura, AAA Credit Rating) 35,004 SF Lease Exp. 2025 Valley Marketplace 30,331 SF Lease Exp. 2024 19,687 SF Lease Exp. 2026 demand at Mountaingate Plaza. ANCHOR RENTS TENANT NAME SUITE SF RENT PSF/MO. PENDING FITNESS ANCHOR 17,000 SF Lease Exp. 2028 6,089 SF Lease Exp. 2033 2,175 SF Lease Exp. 2027 Valley Marketplace 1117A 30,331 $0.78 99 Cents Only Stores 1293B 24,066 $0.84 dd's Discount 1313 19,687 $0.79 Rite Aid 1159 19,170 $0.60 Total 93,254 $0.76 2,400 SF Lease Exp. 2025 1,787 SF Lease Exp. 2025 1,650 SF Lease Exp. 2026 7
TENANT ROSTER SUITE TENANT USE SF LEASE EXP. 1000 County of Ventura / Sierra Medical Office 35,004 Feb-25 1101 Hai Sushi Restaurant Retail 1,800 Jun-23 1103 Mountain Gate Coin Laundry Retail 1,487 Oct-22 1109B Dave Janssen's School of Music Retail 2,621 Jun-20 1111A El Pollo Loco Retail 2,400 Feb-25 1115B AVAILABLE Retail 1,200 N/A 1117A Valley Marketplace Retail 30,331 Jun-24 1119 AVAILABLE Retail 2,432 N/A 1121 AVAILABLE Retail 3,600 N/A 1123 Lease Pending Retail 10,825 Feb-29 1133A Lease Pending Retail 6,841 Jul-21 1133B Ventura County Public Health Dept. Retail 4,896 Jan-26 1157 AVAILABLE Retail 5,270 Feb-28 1159 Rite Aid Retail 19,170 May-19 1167 AVAILABLE Retail 3,231 N/A 1169 Mountaingate Barber Shop Retail 522 Apr-21 1171 Westway Cleaners Retail 1,019 Nov-19 1177A Ace Cash Express Retail 990 Dec-20 1177B AVAILABLE Retail 1,380 N/A 1197B Sprint Retail 2,160 Apr-29 1197C The UPS Store Retail 1,440 Mar-19 1197D Dr Carrie Kubota & Associate Retail 1,408 Apr-19 1197E Pacific Dental Services Retail 3,050 Jul-20 1203 Big 5 Retail 10,000 Jan-20 1239 O'Reilly Auto Parts Retail 5,555 Dec-19 SUITE TENANT USE SF LEASE EXP. 1291 PENDING FITNESS ANCHOR Retail 17,000 Feb-28 1293A AVAILABLE Retail 19,000 N/A 1293B 99 Cents Only Stores Retail 24,066 Jan-21 1301A US Armed Forces Recruiting Retail 6,178 Aug-21 1303 Larwin Liquor Retail 1,875 Nov-20 1305 AVAILABLE Retail 904 N/A 1313 dd's Discounts Retail 19,687 Jan-26 1315 One Main Financial Retail 1,875 Jun-23 1317 AVAILABLE Retail 2,088 N/A 197A1 Starbucks Corporation Retail 1,650 Jun-26 197A2 Nutri Shop Retail 970 Dec-22 197A3 Jersey Mikes Sandwiches Retail 1,787 Jun-25 2022A Black Bear Diner / SoCal Diners Retail 6,089 Mar-32 2022B Smashburger Retail 2,175 Nov-27 2050A Pro Beauty Supply Retail 3,293 Aug-25 2050C Fred Loya Insurance Agency Retail 1,200 Jun-22 2050D Pizza Hut Retail 1,332 Mar-22 2050E Office Depot Retail 6,053 Jan-19 2090A Donut Cafe Retail 1,100 Jun-20 2090B Great Central Steak & Hoagie Retail 1,100 Nov-19 2090C AM Cell Phone Repair Retail 1,430 Dec-18 2090D Nail Salon Retail 770 Jun-21 2090E Thai Noodles Retail 986 Sep-19 Total SF 281,240 8
SIERRA MEDICAL CENTER Valley Marketplace (County of Ventura, AAA Credit Rating) 2090E 2090D 2090B 2090C 2090A SITE PLAN 1101 1103 1000 1119 1117A 1115B 1111A 1109 1121 1123 1133A 1133B 1291 1293A 1293B 1313 1157 1315 1177B 2050E 1159 2050D 2050C 1316 1169 1171 1177A 2050A & B PENDING FITNESS ANCHOR 2022B 197A3 197A2 1203 1239 1301A 1303 1197B 1197E 2022A 1197D 1197C 1305 FIRST STREET 1167 197A1 E LOS ANGELES AVENUE LEASED AVAILABLE LEASE PENDING 9
INVESTMENT ADVISORS GLEB LVOVICH Managing Director 949.798.4115 glvovich@hfflp.com CA Lic. #01496699 BRYAN LEY Managing Director 310.407.2120 bley@hfflp.com CA Lic. #01458927 DANIEL TYNER Director 949.798.4125 dtyner@hfflp.com CA Lic. #01959818 DEBT ADVISOR JEFF SAUSE Senior Director 310.407.2133 jsause@hfflp.com CA Lic. #01852507 REAL ESTATE ANALYSTS MARK DEGIORGIO Associate 949.798.4138 mdegiorgio@hfflp.com CA Lic. #02026853 CHRISTIAN TOBER Analyst 949.798.4993 ctober@hfflp.com CA Lic. #02000531 2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 25 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. hfflp.com