Single tenant NNN lease 17632 Seventeenth Street, Tustin, CA
For More Information Contact: Jereme Snyder Executive Vice President License No. 01360233 949.724.5552 jereme.snyder@colliers.com Table of Contents Investment Highlights... 4 Lease Summary...5 Tenant Overview... 6 Eric Carlton Associate Vice President License No. 01809955 949.724.5561 eric.carlton@colliers.com John Sharpe Senior Associate License No. 01800769 949.724.5546 john.sharpe@colliers.com Financial Analysis...7 Property Information... 8 Property Photos...9 Property Aerial...10 Location Overview...11 City Overview... 12 Regional Map... 13 Confidentiality Agreement...14 Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92814 Snyder/Carlton Team Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s). 2012. All rights reserved.
Prospect Ave. Huge Deposit Base Over $120 million Top Bank Branch 1.5% Annual Increases Excellent Inflation hedge Dense Upscale Trade Area Over $93,000 AHI Located in busy Grocery Drug Anchored Center High Traffic Freeway Traffic AADT of +/- 44,379 Investment Grade Tenant Corporate Lease Brand New 10 Year Lease over 9+ Years Remaining Very Rare Central Orange County NNN Investment SUBJECT PROPERTY 17th St. 249,000 CPD 17th St. 44,379 CPD Western Medical Center Santa Ana 361,000 CPD Tustin Irvine Medical Group 55 Frederick Remington Elementary School Cabrillo Park Dr. E. 4th St. Helen Estock Elementary School Irvine Blvd. Columbus Tustin Middle School E. 1st St. Santa Ana Unified School District St. Jeanne De Lestonnac School Chestnut Ave.
Investment Highlights NEW 10 YEAR LEASE - EXCELLENT BRANCH DEPOSITS > > Over $120 Million in Branch Deposits - Represents Significant Market Share > > New 10 Year Corporate Guaranteed Lease > > Fee Simple, Absolute NNN Lease - Zero Landlord Obligations > > 1.5% Annual Increases Excellent Inflation Hedge INVESTMENT GRADE CREDIT > > Citibank, N.A. - S&P Rated A with Stable Outlook - True Investment Grade > > Wholly Owned Subsidiary of Citigroup (NYSE: C) - Over $135 Billion Market Cap PROPERTY OVERVIEW We are pleased to offer to qualified investors a rare opportunity to purchase a fee simple absolute NNN building that is 100% leased to Citibank, N.A. within the city of Tustin in Orange County, CA. There are over 9 years remaining of primary term with attractive 1.5% annual increases and 3-5 year option periods. This bank branch boasts over $120M in branch deposits, representing a significant market share. Citibank, N.A. is an investment grade company (S&P Rated A, Outlook: Stable) and has been on the of the largest institutions in the world. Total assets exceed $1.3 Trillion, with net income exceeding $3.75 Billion. Citigroup was ranked 26th on the Fortune 500 in 2013 and is traded on the NYSE (C) with a market capitalization of approximately $135 Billion. This is a rare opportunity to purchase a proven and successful branch with over $120 Million in deposits on a fee simple absolute NNN lease, with approximately 9+ years remaining, and positioned within the desirable Orange County market in Southern California. > > Total Assets Exceed $1.3 Trillion - Net Income Exceeds $3.75 Billion > > Ranked 26th on Fortune 500 in 2013 - One of the Largest Banks in the World RARE ORANGE COUNTY UPSCALE LOCATION > > Outparcel within a Vons / CVS anchored shopping center > > A+ Location Dense Infill Orange County Location High Income Demographic > > High Income Demographics within Santa Ana and Tustin Hills - $93,348 Average Household Income > > Approximately 575,368 Residents Within a 5-Mile Radius > > Situate on a High Traffic Major Traffic Corridor - AADT +/- 44,379 Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92814 Snyder/Carlton Team Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification. Copyright 2013 Colliers International. Citibank 17632 17th St. page 4
Lease Summary LEASE SUMMARY Tenant Trade Name Tenant Guarantor Citibank, N.A Citibank, N.A Lease Commencement January 31, 2014 Lease Expiration January 34, 2024 Lease Term Term Remaining On Lease Current NOI Increases Option Periods Roof and Structure Building Area Land Area Lease Type 10 Years 9+ Years $195,720 1.5% Annual Increases 3-5 Year Options Tenant Responsible 4,893 +/- SF 10,019 +/- SF (.23 Acres) Single Tenant Absolute NNN APN 401-381-05 Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92814 Snyder/Carlton Team Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification. Copyright 2013 Colliers International. Citibank 17632 17th St. page 5
Citibank, National Association provides commercial and consumer banking products and services. Its products and services include e-savings; checking, savings, and money market accounts; certificates of deposit; credit cards; mortgages and student loans; individual retirement accounts and rollovers; investments; insurance; and Citibank National Association special relationship accounts. It also offers online banking, including bill payment, e-mail and wireless alerts, inter institution transfers, wire transfers, debit cards and reward programs, overdraft protection, and foreign currency with World Wallet services, as well as provides mobile banking services, such as viewing transactions, transferring funds, and paying bills. It has a strategic cooperation with UnionPay. The company was formerly known as Citibank, N.A. and changed its name to Citibank, Parent Company Citigroup Traded As NYSE: C Fiscal Year Ends December 31 Revenue (TTM) $68.16 Billion Gross Profit (TTM) Market Capitalization Total Debt (MRQ) Number of Locations Number of Employees Headquarters $67.64 Billion $154.35 Billion $520.71 Billion 3,729 244,000 New York City, NY National Association in July, 2001. It was founded in 1812 and is based in New York, New York with a sub-branch in Hangzhou. It has additional offices in Asia, Europe, and South Africa. Citibank, National Association operates as a subsidiary of Citicorp. Citibank 17632 17th St. page 6
Financial Analysis TENANT BLDG SF LEASE START LEASE EXPIRATION RENT/ SQ. FT. ANNUAL RENT RENTAL ADJUSTMENT DATE ADJUSTED ANNUAL RENT OPTION PERIODS Citibank 4,893 1/31/2014 1/34/2024 $40.00 $195,720 1/31/2015 1/31/2016 1/31/2017 1/31/2018 1/31/2019 1/31/2020 1/31/2021 1/31/2022 1/31/2023 $198,656 $201,636 $204,660 $207,730 $210,846 $214,009 $217,219 $220,477 $223,784 3-5 YR Options TOTALS 4,893 $195,720 PRICING Price $4,893,000 NOI $195,720 Cap Rate 4.00% OPERATING EXPENSE DATA Taxes Insurance CAM Total Expenses NNN NNN NNN NNN Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92814 Snyder/Carlton Team Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification. Copyright 2013 Colliers International. Citibank 17632 17th St. page 7
Property Information Address / Location 17632 Seventeenth Street, Tustin, CA 92780 Market Orange County Price $4,893,000 Current NOI $195,720 Access Easy access from 17th St. & 55 Freeway Over 44,379 AADT Zoning Commercial Year Built/Renovated Built in 1974 - Renovated in 2009 Cap Rate 4.00% Parcel APN#: 401-381-05 Total Land Area Approximately 10,019 SF (.23 Acres) Building Area Approximately 4,893 SF Visibility And Frontage Excellent visibility and frontage along 17th St. Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92814 Snyder/Carlton Team Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification. Copyright 2013 Colliers International. Citibank 17632 17th St. page 8
Property Photos
Enderle Center Dr. Property Aerial Prospect Ave. SUBJECT PROPERTY Yorba St. THE CRAB COOKER 55 249,000 CPD LAW OFFICES E 17th St. 44,379 CPD Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92814 Snyder/Carlton Team Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification. Copyright 2013 Colliers International. Citibank 17632 17th St. page 10
Location Overview POPULATION 1-MILE 3-MILE 5-MILE Estimated Population (2014) 20,613 243,423 575,368 Projected Population (2019) 21,458 253,498 603,937 Historical Annual Growth 2010-2014 3.12% 3.12% 4.20% Projected Annual Growth 2014-2019 4.10% 4.14% 4.97% HOUSEHOLDS 1-MILE 3-MILE 5-MILE Estimated Households (2014) 7,139 73,589 161,063 Projected Households (2019) 7,436 76,827 169,839 Historical Annual Growth 2010-2014 2.85% 3.27% 4.34% Projected Annual Growth 2014-2019 4.16% 4.40% 5.45% INCOME 1-MILE 3-MILE 5-MILE Avg. Household Income (2014) $91,031 $86,075 $93,348 The subject property is situated as an outparcel to a Vons and CVS anchored shopping center. The property fronts 17th Street which is a major commuter route providing residents a direct access route to the 55 Freeway just to the west of the subject property. The surrounding trade area includes Santa Ana Hills and Tustin Hills which have some of the highest priced luxury homes within all of Southern California. The trade is comprised of mostly middle to upper class residents with an average household income exceeding $93,348 and approximately 243,423 residents within a 3-mile radius. The city of Tustin is a city in Orange County, CA and is known for its quiet neighborhoods, strong public safety, and strategic location in the heart of Orange County. In 2009, Tustin was ranked one of the top 25 cities in which to live in America. Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92814 Snyder/Carlton Team Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification. Copyright 2013 Colliers International. Median Household Income (2014) $69,446 $62,835 $69,128 DAYTIME DEMOS 1-MILE 3-MILE 5-MILE Total # of Businesses (2014) 2,929 12,944 25,228 Total # of Employees (2014) 22,700 117,208 272,795 Employee Pop. per Business 8 9 11 Residential Pop. per Business 7 19 23 Citibank 17632 17th St. page 11
Tustin is situated in the heart of Orange County, an area that has long been thought of as the perfect place to live, work and play. The proximity of state and interstate freeways, airports, seaports and rail service, including Amtrak and MetroLink Commuter service, enables easy travel to and from Tustin. The City of Tustin is located in central Orange County. Tustin is bordered by the City of Santa Ana to the west, Irvine to the east and south and an unincorporated area of the Orange County to the north. The City of Tustin is directly accessible by way of the Santa Ana Freeway (5), the Costa Mesa Freeway (55), and the Eastern Transportation Corridor (261). Tustin is within three minutes driving time of the Garden Grove Freeway (22), and within ten minutes of the Riverside Freeway (91). CLOSE PROXIMITY TO: Disneyland: Los Angeles: Pacific Ocean: Port of Los Angeles: Port of Long Beach: San Diego: John Wayne OC Airport: Fullerton Municipa Airport: Long Beach Airport: Ontario Airport: Los Angeles International Airport: 8 miles 35 miles 10 miles 31 miles 20 miles 80 miles 2 Miles 12 Miles 25 Miles 30 Miles 40 Miles
Regional Map
Confidentiality Agreement This Offering Memorandum contains select information pertaining to the business and affairs of Citibank, Tustin, CA It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of Citibank, Tustin, CA or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92814 Snyder/Carlton Team Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification. Copyright 2013 Colliers International. Citibank 17632 17th St. page 14
For More Information, contact: Jereme Snyder Executive Vice President License No. 01360233 949.724.5552 jereme.snyder@colliers.com Eric Carlton Associate Vice President License No. 01809955 949.724.5561 eric.carlton@colliers.com John Sharpe Senior Associate License No. 01800769 949.724.5546 john.sharpe@colliers.com The SNYDER/CARLTON Team Colliers NNN Group 3 Park Plaza Ste. 1200 Irvine, CA 92614 www.colliersnnn.com