MISSION CENTER 1950 South 4th Street, El Centro, California 92243 Exclusively Offered By: Michael Campbell 619.546.0122 Michael@InvestCoreCommercial.com CA Lic #01843521 Ed Colson, Jr. CCIM 619.546.0121 Ed@InvestCoreCommercial.com CA Lic #01382996 TX Lic #635820 InvestCoreCommercial.com
OFFERING STATEMENT / DISCLAIMER InvestCore Commercial has been retained as the exclusive advisor and broker regarding the sale of the Mission Center located at 1950 South 4th Street, El Centro, California 92243. This Offering has been prepared by InvestCore Commercial for use by a limited number of parties and does not purport to provide a necessarily complete summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective investors may need or desire. All projections have been developed by InvestCore Commercial, the Owner, and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and, therefore, are subject to variation. No representation is made by InvestCore Commercial or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, InvestCore Commercial, Owner, and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omission from, this Investment Offering or any other written or oral communication transmitted or made available to the recipient. This Offering does not constitute a representation that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the package. Analysis and verification of the information contained in this package is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the Property will be made available upon written request to interested and qualified prospective investors. Owner and InvestCore Commercial each expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity reviewing this Offering or making an offer to purchase the Property unless and until a written agreement for the purchase of the Property has been fully executed, delivered, and approved by Owner and its legal counsel, and any conditions to Owner s obligations thereunder have been satisfied or waived. InvestCore Commercial is not authorized to make any representations or agreements on behalf of Owner. This Offering and the contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein are called the Contents ), are of a confidential nature. By accepting the package, you agree (i) to hold and treat it in the strictest confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the package or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or InvestCore Commercial, (iv) not use the package or any of the contents in any fashion or manner detrimental to the interest of Owner or InvestCore Commercial, and (v) to return it to InvestCore Commercial immediately upon request of InvestCore Commercial or Owner. If you have no further interest in the Property, please return this Investment Offering forthwith. InvestCore Commercial, Inc. 3910 W. Point Loma Blvd, Suite B San Diego, CA 92110 2 Mission Center - El Centro, CA
TABLE OF CONTENTS INVESTMENT SUMMARY 4 Executive Summary Investment Highlights PROPERTY DESCRIPTION 7 Photos Site Plan Street Map Aerials AREA OVERVIEW 11 Market Summary Demographics 3 Mission Center - El Centro, CA
INVESTMENT SUMMARY Executive Summary Investment Highlights 4 Mission Center - El Centro, CA
INVESTMENT SUMMARY EXECUTIVE SUMMARY Address: Land Size: Building Size: Existing Occupancy: 87% 1950 South 4th Street El Centro, CA 92243 ~95,396 SF (2.19 Acres) **Subject property includes approximately ½ acre of land that can be immediately developed ~19,347 SF Number of Occupants: Seven (7) Number of Suites: Eight (8) Year Built 2 : Traffic Counts: APN: 053-564-095 Zoning: 1990 (Recent renovations by owner, see notes below.) Interstate 8-35,500 ADT South 4th Street - 27,000 ADT CG, General Commercial Zone - City of El Centro OFFERING TERMS Purchase Price: $3,975,000 Actual NOI @ 87% 1 : $298,520 Actual Cap Rate: 7.51% Proforma NOI @ 100%: $354,110 Proforma Cap Rate: 8.91% (1) Please refer to the Financial Analysis section for a breakdown of the actual/proforma income and expenses, rent roll and assumptions. (2) Landlord has spent over $400,000 in the last 3 years improving the property including a new cement parking lot, roof repairs, HVAC units and exterior paint. 5 Mission Center - El Centro, CA
27,000 CPD INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS Excellent Location Off Major Interstate The subject property is ideally located just 1,000 feet north of Interstate 8, the major East/West highway between Southern California and Arizona. The property enjoys its frontage along South 4th Street, one of the major thoroughfares in El Centro, adjacent to national retailers such as McDonald s, Jack in the Box, Chevron and Carl s Jr. Upside Opportunity An investor has the opportunity to immediately realize potential upside upon leasing the one remaining vacancy of the center. In addition to the upside from the lease-up, the development of the additional ½ acre mentioned above will generate additional income and upside to the subsequent owner. Well Maintained Shopping Center The current owner is also the original developer of Mission Center and has taken great pride over the years to keep the property in excellent condition. The landlord has spent over $400,000 in the last 3 years improving the property. Recent improvements include repairs to the roof, he has replaced the entire parking lot with concrete, he has replaced most of the HVAC units within the last 3 years and painted the exterior of the property. There is not much, if any, capital improvements or deferred maintenance to the future owner. Strong Traffic Counts Commuters traveling between Arizona and Southern California utilize Interstate 8 with 35,500 cars per day passing through El Centro. Mission Center is ideally located on South 4th Street, one of three exits off the highway, allowing residents and commuters in and out of El Centro. The subject property benefits from its location on the heavily trafficked thoroughfare with 27,000 cars per day passing by. Excess Land For Future Development The offering includes approximately ½ acre of land that is immediately available for development increasing potential income and overall return. A subsequent owner has the ability to develop separately or redevelop the entire shopping center. Pursuant to the zoning regulation, the subject property is zoned CG which allows for a 50% lot coverage or an additional 28,000 sf (assuming parking requirements are also met). Historically High Occupancy Mission Center has historically achieved and maintained 90%+ occupancy since it was originally constructed in 1990. INTERSTATE 8 (1,000 FT) SUBJECT PROPERTY 6 Mission Center - El Centro, CA
PROPERTY DESCRIPTION Street Map Aerial Site Plan 7 Mission Center - El Centro, CA
PROPERTY DESCRIPTION STREET MAP 8 8 Mission Center - El Centro, CA
PROPERTY DESCRIPTION AERIAL 8 35,500 ADT S. 4TH STREET - 27,000 ADT 8 SUPER STOP TRAVEL CENTER 9 Mission Center - El Centro, CA
PROPERTY DESCRIPTION AERIAL APPROXIMATELY 1/2 ACRE OF DEVELOPABLE INCLUDED S. 4TH STREET - 27,000 ADT 10 Mission Center - El Centro, CA
PROPERTY DESCRIPTION SITE PLAN VACANT ONLINE CAFE CRYSTAL NAIL SALON LA FONDA APPROXIMATELY 1/2 ACRE OF DEVELOPABLE INCLUDED VERIO HEALTHCARE JUST AUTO-PARTS SHERWIN WILLIAMS S. 4TH STREET MR. RICHARDS SALON ALLEY *Site plan not drawn to scale 11 Mission Center - El Centro, CA
FINANCIAL ANALYSIS Rent Roll Income and Expense 12 Mission Center - El Centro, CA
FINANCIAL ANALYSIS RENT ROLL TENANTS Suite # Sq Ft Current Term Renewal Options Current Monthly Rent Monthly Price/SF Annual Increase Next Increase Next Amount Commence Date Expiration Date Security Deposit La Fonda 1 & 2 3,800 10 Years 2-3 Yr $4,560.00 $1.20 see Lease 4/1/18 $4,750.00 12/4/14 3/31/25 $5,000.00 Crystal Nail Salon 3 1,260 5 Years None $2,411.14 $1.91 4% 1/1/18 $2,507.59 1/1/03 12/31/2021 $1,386.00 Internet Divertidos/Online Café 4A 2,550 3 Years 1-3 Yr $3,580.20 $1.40 4% 6/1/17 $3,723.41 6/1/13 5/31/19 $3,187.50 Vacant 4B 2,550 Verio Healthcare 4C 1,020 3 Years 1-3 Yr $1,377.00 $1.35 4% 6/1/17 $1,432.08 5/5/16 6/30/19 $3,628.24 Just Auto-Parts (1) 5 1,510 5 Years 1-3 Yr $2,038.50 $1.35 4% NA $2,120.04 10/28/16 10/31/21 $2,038.50 Sherwin Williams (2) 7 5,527 5 Years 2-3 Yr $10,517.83 $1.90 see Lease 10/1/18 $10,833.36 9/15/90 9/30/18 $- Mr. Richard s Salon 9 1,130 2 Years $1,582.00 $1.40 NA 7/15/10 7/31/17 $1,130.00 SUB-TOTAL 19,347 $26,066.67 $16,370.24 TOTAL LEASED 16,797 TOTAL SQ. FT. 19,347 % LEASED 87% LEASES PENDING 0 SQ. FT. VACANT SQ. FT. 2,550 SQ. FT. (1) Just Auto-Parts rent is to commence 60 days upon Landlords delivery of the Premises, or 10/28/2016. In the event of a sale prior to the rent commencement date, Seller will credit the rent from closing to rent commencement. (2) The total current monthly rent assumes the increased rent for Sherwin Williams on 10/1/2016. In the event of a sale prior to the increase date, Seller will credit the difference in rent from closing to the adjustment date. 13 Mission Center - El Centro, CA
FINANCIAL ANALYSIS INCOME AND EXPENSE INCOME ACTUAL PRO FORMA Base Rent Occupied Space $312,800 $354,110 Vacant Space at Market Rents $16.20 41,310 - Gross Potential Rent $354,110 $354,110 Expense Reimbursements 94,103 112,010 Gross Potential Income $448,213 $466,120 Vacancy 13.2% (41,310) 0.0% - GROSS EFFECTIVE INCOME $406,903 $466,120 EXPENSES Real Estate Taxes $19,061 $19,823 Insurance 9,636 10,021 CAM Utilities 11,609 12,073 Repairs & Maintenance 6,500 6,760 Landscaping 7,200 7,488 Dumpster 7,144 7,430 Janitorial 8,550 8,892 Administration 16,660 17,326 Total CAM $57,663 $59,969 Management Fees 22,023 22,196 TOTAL EXPENSES $5.60 $108,383 $5.79 $112,010 NET OPERATING INCOME $298,520 14 Mission Center - El Centro, CA
AREA OVERVIEW MARKET SUMMARY About El Centro El Centro is a city in and county seat of Imperial County, the largest city in the Imperial Valley and the east anchor of the Southern California Border Region, and the core urban area and principal city of the El Centro metropolitan area which encompasses all of Imperial County. El Centro is the center of one of Southern California s most promising new commercial and industrial regions. There are two international border crossings nearby for commercial and noncommercial vehicles. Covering 11.019 square miles is the largest city in Imperial County. We are located 616 miles southwest of San Francisco, 117 miles east of San Diego and 245 miles west of Phoenix, Az. and just 15 minutes from the international industrial complexes in Mexicali, Baja California. El Centro is accessible via Interstate 8, State Highway 86 and State Highway 111. El Centro had also become the principal wholesale center of the area and the location of the Imperial Irrigation District (IID) administrative offices. Because of its strategic location near rail lines and Highway 80 and 99, El Centro in the 1940s was also becoming the shipping center for vegetables in the south end of the Valley. The principle industries of El Centro in the forties revolved around agriculture fruit and vegetable packing and shipping, ice plants, a flax fiber plant, box factories, and concrete pipe and brick yards. By the 1970s agriculture was still an important part of the City s economic life. Imperial County has become one of the most agriculturally productive areas in the country and more than 35 growers and shippers still operate in El Centro. However, by the early 1980s the two largest employment sectors in El Centro labor market area were Government and Wholesale/Retail Trade, reflecting El Centro s emerging role as a regional administrative and commercial center. About Imperial Valley Imperial County includes the communities of Brawley, El Centro, Calexico, Imperial, Heber, and Holtville. Total, there are approximately 174,528 people that live in the Imperial Valley. Imperial Valley is one of the most productive agricultural regions, not only in California, but the world. The annual crop production is over $1 billion. Imperial Valley is bordered to the south by Mexicali, Mexico which has a population of just over 1.25 million people. Based on 2010 figures, over 5,900,000 vehicles crossed the International Border and approximately 14,900,000 total individuals entered into Imperial Valley from Mexico. Manufacturing jobs have grown tremendously due to the transformation of Mexicali as an industrial center. Due to this influx of people, service and retail job opportunities have grown substantially. 15 Mission Center - El Centro, CA
AREA OVERVIEW DEMOGRAPHICS Population 1 mile 3 miles 5 miles 2000 Population 11,993 41,275 50,928 2010 Population 12,819 48,699 63,223 2016 Population 13,347 50,684 67,237 2021 Population 13,766 52,693 70,493 2000-2010 Annual Rate 0.67% 1.67% 2.19% 2010-2016 Annual Rate 0.65% 0.64% 0.99% 2016-2021 Annual Rate 0.62% 0.78% 0.95% 2016 Male Population 48.5% 49.1% 49.1% 2016 Female Population 51.5% 50.9% 50.9% 2016 Median Age 31.9 31.8 31.7 In the identified area, the current year population is 67,237. In 2010, the Census count in the area was 63,223. The rate of change since 2010 was 0.99% annually. The five-year projection for the population in the area is 70,493 representing a change of 0.95% annually from 2016 to 2021. Currently, the population is 49.1% male and 50.9% female. Median Age The median age in this area is 31.9, compared to U.S. median age of 38.0. Race and Ethnicity 2016 White Alone 57.3% 59.9% 60.0% 2016 Black Alone 2.8% 2.5% 2.3% 2016 American Indian/Alaska Native Alone 1.1% 1.2% 1.1% 2016 Asian Alone 1.8% 2.3% 2.2% 2016 Pacific Islander Alone 0.1% 0.1% 0.1% 2016 Other Race 31.7% 28.9% 29.0% 2016 Two or More Races 5.1% 5.1% 5.3% 2016 Hispanic Origin (Any Race) 85.1% 84.3% 83.9% Persons of Hispanic origin represent 83.9% of the population in the identified area compared to 17.9% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 73.7 in the identified area, compared to 63.5 for the U.S. as a whole. Households 2000 Households 3,507 12,199 14,875 2010 Households 3,925 14,633 18,753 2016 Total Households 4,024 15,083 19,753 2021 Total Households 4,124 15,590 20,593 2000-2010 Annual Rate 1.13% 1.84% 2.34% 2010-2016 Annual Rate 0.40% 0.49% 0.83% 2016-2021 Annual Rate 0.49% 0.66% 0.84% 2016 Average Household Size 3.30 3.29 3.34 The household count in this area has changed from 18,753 in 2010 to 19,753 in the current year, a change of 0.83% annually. The five-year projection of households is 20,593, a change of 0.84% annually from the current year total. Average household size is currently 3.34, compared to 3.29 in the year 2010. The number of families in the current year is 15,778 in the specified area. 16 Mission Center - El Centro, CA
AREA OVERVIEW DEMOGRAPHICS Median Household Income 1 mile 3 miles 5 miles 2016 Median Household Income $43,239 $43,476 $47,278 2021 Median Household Income $43,560 $43,692 $47,374 2016-2021 Annual Rate 0.15% 0.10% 0.04% Average Household Income 2016 Average Household Income $60,527 $62,212 $64,231 2021 Average Household Income $65,526 $66,882 $69,444 2016-2021 Annual Rate 1.60% 1.46% 1.57% Per Capita Income 2016 Per Capita Income $17,687 $19,488 $19,705 2021 Per Capita Income $18,975 $20,733 $21,090 2016-2021 Annual Rate 1.42% 1.25% 1.37% Households by Income Current median household income is $47,278 in the area, compared to $54,149 for all U.S. households. Median household income is projected to be $47,374 in five years, compared to $59,476 for all U.S. households Current average household income is $64,231 in this area, compared to $77,008 for all U.S. households. Average household income is projected to be $69,444 in five years, compared to $84,021 for all U.S. households Current per capita income is $19,705 in the area, compared to the U.S. per capita income of $29,472. The per capita income is projected to be $21,090 in five years, compared to $32,025 for all U.S. households Housing 2000 Total Housing Units 3,802 13,042 15,815 2000 Owner Occupied Housing Units 1,961 6,326 8,253 2000 Renter Occupied Housing Units 1,546 5,872 6,621 2000 Vacant Housing Units 295 844 941 2010 Total Housing Units 4,545 16,172 20,634 2010 Owner Occupied Housing Units 2,128 7,547 10,325 2010 Renter Occupied Housing Units 1,797 7,086 8,428 2010 Vacant Housing Units 620 1,539 1,881 2016 Total Housing Units 4,697 16,851 21,957 2016 Owner Occupied Housing Units 2,113 7,524 10,651 2016 Renter Occupied Housing Units 1,910 7,559 9,102 2016 Vacant Housing Units 673 1,768 2,204 2021 Total Housing Units 4,826 17,543 22,995 2021 Owner Occupied Housing Units 2,143 7,715 11,045 2021 Renter Occupied Housing Units 1,981 7,875 9,548 2021 Vacant Housing Units 702 1,953 2,402 Currently, 48.5% of the 21,957 housing units in the area are owner occupied; 41.5%, renter occupied; and 10.0% are vacant. Currently, in the U.S., 55.4% of the housing units in the area are owner occupied; 32.9% are renter occupied; and 11.7% are vacant. In 2010, there were 20,634 housing units in the area - 50.0% owner occupied, 40.8% renter occupied, and 9.1% vacant. The annual rate of change in housing units since 2010 is 2.80%. Median home value in the area is $182,540, compared to a median home value of $198,891 for the U.S. In five years, median value is projected to change by 1.46% annually to $196,284. 17 Mission Center - El Centro, CA