jpalmer@westmarcre.com BRE #01442207 Phone: Fax: (951) 491-6330 41623 Margarita Road, Suite 100 Temecula, CA 92591 www.westmarcre.com
Investment Highlights HIGH TRAFFIC LOCATION WITH GREAT VISIBILITY Signalized hard corner location with daily average in excess of 50,000 cars at this intersection Unobstructed street frontage along both Murrieta Hot Springs Road and Jackson Avenue Going Home side from Murrieta Hot Springs exits of both the I-15 and I-215 freeway exits In midst of retail corridor shared with national retailers including Walgreens, Sam s Club, Marshalls, Rite Aid and Toys R Us STRONG INVESTMENT FUNDAMENTALS 100% Leased Stable rent roll, average tenant occupancy in excess of 5 ½ years. Over 62% of base rental income is paid by tenants that occupied property prior to 2009 recession A diverse mix of seventeen tenants with staggered lease expirations offers investors a hedge against vacancy NNN leases pass expense costs through to tenants offering investors protection from an increase in expenses EXCELLENT MURRIETA LOCATION Murrieta is one of the highest income communities in Riverside County (Average Household Income 5 Mile Radius - $97,193) Consistently in the Top 5 safest cities in the United States, per FBI statistics, Murrieta experienced a further 25% drop in crime in 2016 Bella Piazza is located at the epicenter of the current economic development within the city. CarMax, Rady s Children s Hospital, Hampton Inn, Courtyard by Marriott, Golden Corral and Premiere Rehabilitation and Wellness Center are all completing construction within a 1 ½ miles of the center. NEWER, HIGH QUALITY CONSTRUCTION Built in 2007, this property has pride of ownership construction featuring quality design, great signage and a modern layout New construction with excellent property management reduces the need for building upgrades and code compliance costs OFFERED FREE & CLEAR OF DEBT AT RECORD LOW INTEREST RATES With new debt, investors have the opportunity to take advantage of record low interest rates to leverage strong cash-on-cash returns and very attractive total returns
Investment Summary TENANT ANNUAL SCHEDULED INCOME Tenant Actual Market TOTALS $712,597 $762,442 INVESTMENT SUMMARY Price: $10,950,000 Year Built: 2007 Tenants: 18 RSF: 27,954 ANNUALIZED INCOME Actual Market Gross Potential Rent $712,597 $762,442 Less: Vacancy $0 ($38,122) Misc. Income $211,908 $203,160 Effective Gross Income $924,505 $927,480 Less: Expenses ($211,907) ($210,297) Net Operating Income $712,598 $717,183 Debt Service ($471,243) ($471,243) Net Cash Flow after Debt Service $241,354 $245,940 Principal Reduction $115,934 $115,934 Total Return $357,288 $361,873 Price/RSF: $391.71 Lot Size: 2.98 acres Floors: 1 Parking Spaces: 4.83 APN: 916010037 Cap Rate: 6.51% Market Cap Rate: 6.55% ANNUALIZED EXPENSES Actual Market Replacement Reserves $5,304 $5,034 Misc $206,603 $205,263 Total Expenses $211,907 $210,297 Expenses Per RSF $7.58 $7.52 FINANCING SUMMARY Loan Amount: $8,212,500 Down Payment: $2,737,500 Loan Type: Fixed Interest Rate: 4.75% Term: 30 years Monthly Payment: $42,840 DCR: 1.51
Location Map
Aerial & Demographics Demographics Traffic Counts Source: ESRI 2016 1 mile 3 mile 5 mile 2016 Population (Estimated) 2021 Population (Projected) Daytime Employee Population 15,992 93,654 187,785 16,686 98,755 200,809 4,901 43,581 74,588 Source: CoStar 2014* and City of Murrieta 2012** Murrieta Hot Springs Road West of Jackson Avenue* Jackson Avenue South of Murrieta Hot Springs Road** ADT 48,394 2,900 Average Household Income $88,060 $92,200 $97,193
Site Plan Suite Tenant Square Feet 120 Seoul Asian Market 1,825 118/119 Smile Dental Center 2,682 116/117 Alberto s Taco Shop 1,925 115 Z&S Tailor 825 114 Bella Nails & Spa 1,100 113 Unique Vapors 1,388 112 Planet Beach 1,485 111 Hair+ Salon 1,200 110 Martial Arts 1,800 109 MeTime Massage Spa 1,200 108 My Haus Bakery 1,489 107 Rico s Barber Shop 1,115 106 4 Seasons Beauty Supply 825 105 Bail Bond Hotline Bail Bonds 825 104 DNA Services Unlimited 1,100 103 Pho Restaurant Expansion 1,307 101/102 Pho Restaurant 1,825 100 California Coast Credit Union 4,038
Property Photos
Property Description Market Overview Murrieta is a young, affluent community ideally located at the junction of the I-15 and I-215 freeways (275,000 trips per day) with close proximity to San Diego, Los Angeles, and Orange Counties (9 million people within a one hour drive time). With a population over 113,795, Murrieta is currently the fourth largest city in Riverside County (pop. 2.29 million) having grown more than 400% in the past 23 years. Home to citizens looking to work and conduct business within their community, 54% earn $75,000 to $200,000 with over 40% of the population around the $100,000 mark (Kosmont). Highly educated, 60% are classified as Boomburbs, Up and Coming Families, Soccer Moms, and Bright Young Professionals (Kosmont). Based upon the escalating commercial investment in the area, Murrieta s future continues to look bright. The national auto retailer, CarMax has recently opened their largest facility on a 40 acre site just across the freeway from the property in question. In close proximity, a new four-story Residence Inn by Marriott opened their doors this past fall and a new Courtyard by Marriott and Hampton Inn are also now under construction within a mile s radius. Just to the north of the site is located the North Murrieta Technology Corridor, a new medical area of excellence. Anchored by the Loma Linda University Medical Center Murrieta (40 acre hospital and medical office building campus) at one end, and a new Kaiser Permanente Murrieta Valley Medical Complex (38 acres of medical office) at the other, these new additions have drawn hundreds of new high income residents to the community. In addition, in just over a mile from the site, Rady Children s Hospital of San Diego has started construction of their 100,000 sq. ft. pediatrics healthcare facility; HealthSouth is constructing a regional brain rehabilitation hospital; and Rancho Springs Medical Center-Murrieta recently completed their expansion.
Rent Roll (5/1/17 4/30/18) Suite(s) Occupied Tenant Square Feet Rent Start Expiry 12 Month Base Rent Total 12 Month NNNs Total Revenue Notes 100 California Coast Credit 4,038 8/1/2007 7/31/2018 $155,261.58 $40,808.52 $196,070.10 Union 101-102 Pho Restaurant 1,825 8/15/2008 9/14/2018 $50,787.20 $12,195.96 $62,983.16 Extension 2018-2027 pending 103 Pho Restaurant 1,307 10/1/2017 9/30/2027 $13,723.50 $8,783.04 $22,506.54 Pending as per above (Expansion) 104 DNA Services 1,100 6/22/2015 11/30/2020 $22,836.00 $7,350.96 $30,186.96 Unlimited 105 Bail Bond Hotline Bail 825 6/1/2011 5/31/2021 $18,657.36 $5,513.16 $24,170.52 Bonds 106 4 Seasons Beauty Supply 825 2/1/2007 1/31/2018 $17,446.32 $5,513.16 $22,959.48 Projected Renewal $2.00 NNN 107 Rico's Barber Shop 1,115 9/1/2010 8/31/2018 $30,238.80 $7,451.16 $37,689.96 Extension 2018-2020 pending 108 My Haus Bakery 1,489 10/1/2011 12/31/2018 $30,802.15 $9,950.40 $40,752.55 109 MeTime Massage Spa 1,200 9/1/2016 1/31/2020 $24,851.72 $8,019.24 $32,870.96 110 Martial Arts 1,800 9/14/2007 12/31/2022 $38,471.84 $12,028.80 $50,500.64 111 Hair+ Salon 1,200 11/1/2013 4/30/2019 $21,960.00 $8,019.24 $29,979.24 112 Planet Beach 1,485 7/1/2014 6/30/2019 $29,551.50 $9,923.88 $39,475.38 113 Unique Vapors 1,388 9/15/2014 11/30/2020 $31,872.58 $9,275.52 $41,148.10 114 Bella Nails & Spa 1,100 5/1/2012 4/30/2019 $23,892.00 $7,350.96 $31,242.96 115 Z&S Tailor 825 7/1/2013 12/31/2018 $17,710.20 $5,513.16 $23,223.36 116/117 Alberto's Taco Shop 1,925 11/5/2008 11/30/2018 $54,645.12 $12,864.12 $67,509.24 Extension 2018-2026 pending 118/119 Smile Dental Center 2,682 4/1/2007 9/30/2022 $80,340.50 $17,922.96 $98,263.46 120/121 Seoul Asian Market 1,825 1/1/2008 12/31/2028 $49,202.00 $12,880.32 $62,082.32 40408 7/11 Gas/Convenience 0 1/1/2007 12/31/2028 $0.00 $3,898.44 $3,898.44 7/11 NAP-contribute to Store CAMS only Totals 27,954 $712,250.37 $205,263.00 $917,513.37
Sales Comparables 8% Cap Rate 7% 6% 5% Avg. 6.005 4% 3% 2% 1% Subject 1 2 3 4 7 8 $624 Price per Sq. Ft. $546 $468 Avg. $476.60 $390 $312 $234 $156 $78 Subject 1 2 3 4 5 6 7 8
Sales Comparables S Bella Piazza Sale Price $10,950,000 Tenants 18 $608,333 Price/SqFt $391.71 Cap Rate 6.51% Year Built 2007 1 Sale Date 9/22/2016 Hesperia Marketplace, Pad B Escondido Ave & Main St Hesperia, CA 92345 Sale Price $8,500,000 Price/SqFt $616.61 Cap Rate 5.33% Year Built 2015 Buyer's upleg in 1031 Exchange. 21.6% Vacancy at time of sale. Data obtained from CoStar Realty Information, Inc. 2 Sale Date 3/4/2015 The Orchard at Stone Creek - A 27890 Clinton Keith Rd Murrieta, CA 92562 Sale Price $6,550,000 Price/SqFt $586.29 Cap Rate 6.5% Year Built 2007 Data obtained from CoStar Realty Information, Inc.
Sales Comparables 3 Sale Date 4/20/2015 Rancho Plaza 8678 19th St Rancho Cucamonga, CA 91701 Sale Price $6,825,000 Price/SqFt $583.78 Cap Rate 5.94% Year Built 2007 Data obtained from CoStar Realty Information, Inc. 4 Sale Date 9/25/2015 Mission Village 3280 Chino Hills Pky Chino Hills, CA 91709 Sale Price $5,600,000 Price/SqFt $500.00 Cap Rate 5.5% Year Built 2009 Data obtained from CoStar Realty Information, Inc. 5 Sale Date 3/13/2017 Pacific Plaza - Bldg A 2598 S Archibald Ave Ontario, CA 91761 Sale Price $7,300,000 Price/SqFt $403.45 Cap Rate Year Built 1989 Data obtained from CoStar Realty Information, Inc.
Sales Comparables 6 Sale Date 12/16/2016 The Crossroads 17003 Bear Valley Road Hesperia, CA 92345 Sale Price $4,419,311 Price/SqFt $398.78 Cap Rate Year Built 2007 Former distressed property, sold by Special Servicer. 8% vacancy at time of sale. Data obtained from CoStar Realty Information, Inc. 7 Sale Date 10/31/2016 Margarita Plaza 31754 Temecula Parkway Temecula, CA 92592 Sale Price $4,110,000 Price/SqFt $373.60 Cap Rate 6.54% Year Built 2003 Data obtained from CoStar Realty Information, Inc. 8 Sale Date 11/18/2016 San Luis Rey Plaza 73745 El Paseo Palm Desert, CA 92260 Sale Price $11,857,500 Price/SqFt $350.26 Cap Rate 6.22% Year Built 1980 11% vacant at time of sale. Data obtained from CoStar Realty Information, Inc.
Confidentiality and Disclaimer Statement The information contained in the following Offering Memorandum is proprietary and strictly confidential. The document has been prepared to provide summary, unverified, information to prospective purchasers, and to help establish a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. WestMar Commercial Real Estate has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contamination substances, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable. WestMar Commercial Real Estate has not verified, and will not verify, any of the information contained herein, nor has WestMar Commercial Real Estate conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Co-Operating Broker Fee WestMar Commercial Real Estate has a policy of pro-active broker co-operation with the investment brokerage community. A co-operating broker fee shall be paid at closing to a co-operating broker that represents the buyer that acquires this property. For Further Information For further information concerning Bella Piazza, and a detailed financial analysis, please contact the listing broker as shown below: Exclusively Represented by: Senior Vice President WestMar Commercial Real Estate 951.491.6300 office 951.541.1935 cell jpalmer@westmarcre.com BRE # 01442207