Shops at Magnolia & La Palma 1019 N. Magnolia Avenue, Anaheim, CA 92801
Confidentiality Agreement The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap 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 contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects 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; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Exclusively Listed By Ron Duong First Vice President Investments Senior Director, National Retail Group (949) 419-3233 direct ron.duong@marcusmillichap.com License: CA 01438643 Ben Carlile Investment Analyst Team Manager (949) 419-3304 direct ben.carlile@marcusmillichap.com License: CA 01949032
Executive Summary Rare Orange County Newly-Redeveloped Retail Opportunity Subject property is shop space to a recently redeveloped center, shadowanchored by Rite Aid and Popeyes Rite Aid anchor is a relocation of a store which has been operating successfully in the community for over 20 years The adjacent and new Popeyes will be run by a rapidly growing operator with multiple units throughout Southern California Internet Resistant Occupancy Outstanding Real Estate Fundamentals Strategic location central to all of the county s major freeways (5, 91, 22, & 55) Close proximity to Knott s Berry Farm (3.6 million visitors per year) & Buena Park Downtown (Tenants include 24 Hour Fitness Walmart, T.J. Maxx, Ross, Bed Bath & Beyond, Olive Garden, DSW Shoe Store, and many more) Other recent developments in the city include the Source OC (400k SF of multi-experiential entertainment space) and the Buena Park Entertainment Corridor with recent additions such as Rock & Brews, Butterfly Pavilion, and Porto s Bakery. 100% leased up to 5 exciting new restaurant tenants on new long-term leases Tenants in this center feature a unique blend of established multi-unit operators along with trendy new food concepts which are booming in today s social media environment Unlike other retail concepts, this 100% restaurant center cannot be replaced by internet competition Low Management Requirements; Perfect for 1031 Exchange All tenants on long-term NNN leases with increases throughout the term and options Center has been upgraded and completely renovated to reflect the most up-to-date quality standards Shops at Magnolia & La Palma - Anaheim, CA Marcus Millichap Activity ID: X0100000 4 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc.
Tenant Overview Website Instagram Page Facebook Page www.firehousesubs.com/ instagram.com/firehousesubs/ facebook.com/firehousesubs/ # Locations 1,000+ Locations Firehouse Subs was founded by firefighters and built with real American entrepreneurial spirit. Firehouse Subs is fast casual restaurant chain that specializes in hot subs. Locations offer a family-oriented atmosphere, with a firefighter theme that includes fire equipment throughout the store and a menu that features sandwiches with themed names. Pictures mounted on the walls highlight local firefighting history, as well as the founders history of firefighting service. Twitter Instagram Page Facebook Page twitter.com/wabagrill instagram.com/wabagrillofficial facebook.com/wabagrillofficial/ # of Locations 100+ Locations WaBa Grill strives to serve the best possible grilled fusion menu items using only quality ingredients. Waba Grill uses fruits and vegetables to enhance the flavor of their amazing WaBa sauce. Nothing is fried and no oil is used in the cooking process. WaBa Grill Franchise Corp. seeks to create a premier choice quick service restaurant business model and comprehensive service for the franchisees serving health conscience, premier choice and high value quick service food to customers in an inviting atmosphere with satisfying experience in service. Shops at Magnolia & La Palma - Anaheim, CA Marcus Millichap Activity ID: X0100000 5 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc.
Tenant Overview Twitter Instagram Page Facebook Page twitter.com/taqueriadeanda instagram.com/explore/locations/8406274/ facebook.com/taqueriadeandafullerton Established in 1980, Taqueria De Anda started their business with one catering truck in Fullerton, CA. One year later, they purchased their first location. It was so small that only 4 small tables could fit. As the years went by, they gradually grew, keeping each restaurant a family-owned business. Taqueria De Anda specializes in tacos and burritos and their quality and taste reflect that. Facebook Page facebook.com/churroholic Churroholic is an up and coming speciality dessert restaurant which puts a new twist on the traditional churros we know. This is a new concept that this destined to be a hit with foodies in Orange County. Twitter Instagram Page Facebook Page twitter.com/hashtag/hiccupsteahouse www.instagram.com/hiccupsteahouse www.facebook.com/hiccupsteahouse/ Hiccups is an Asian Fusion restaurant specializing in a variety of dishes and drinks. Hiccups serves a wide range of Thai, Chinese, Vietnamese cuisine as well as premium specialty smoothies, tea and coffees. With sugary drinks for every palate, food ranging from bar snacks to filling pan-asian comfort food, and customer service that doesn t stop at the counter, Hiccups is a new take on American-bred Asian tea houses. Shops at Magnolia & La Palma - Anaheim, CA Marcus Millichap Activity ID: X0100000 6 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc.
Financial Analysis Offering Summary Property Address 1019 N. Magnolia Avenue Anaheim, CA 92801 Current Occupancy 100% Year Renovated 2016 Lot Size ±1.32 Acres (±57,499 Square Feet) Parking Ratio 8.40 / 1,000 SF Pricing Price $6,915,000 Cap Rate 4.50% Price Per Square Foot $907.84 Gross Leasable Area (GLA) ±7,617 Square Feet Annualized Operating Data Gross Potential Rent $311,106.00 Total Expenses NNN NET OPERATING INCOME $311,106.00 Shops at Magnolia & La Palma - Anaheim, CA Marcus Millichap Activity ID: X0100000
Financial analysis continued Rent Roll As of April 2017 for 7,617 Square Feet SUITE TENANT NAME SQUARE FEET PERCENT OF GLA EXPIRES MONTHLY RENT RENT PER SF INCREASES LEASE TYPE OPTIONS/ COMMENTS 1019-A Taqueria De Anda 1,520 19.96% 07/31/2027 $5,320.00 $3.50 $5,958.40 at Year Six NNN Two, Five-Year 1019-B Churroholic 1,363 17.89% 07/31/2027 $4,624.00 $3.40 3% Annual NNN Two, Five-Year 1019-C Hiccups 1,805 23.71% 07/31/2027 $6,137.50 $3.40 3% Annual NNN Two, Five-Year 1019-D Firehouse Subs 1,327 17.43% 07/31/2027 $4,644.00 $3.50 $5,201.84 at Year Six NNN Two, Five-Year 1019-E Waba Grill 1,602 21.04% 02/28/2027 $5,200.00 $3.25 $5,984 at Year Six NNN Two, Five-Year # of Tenants: Five Total Available: Total Occupied 0 SF 7,617 SF 0% 100% Monthly: Annual: $25,925.50 $311,106.00 Average: $3.40/ SF Shops at Magnolia & La Palma - Anaheim, CA Marcus Millichap Activity ID: X0100000 8 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc.
Property Description Aerial Photo - Facing West Buena Park Downtown Walmart 3.6 Million Visitors Anually Subject Property La Palma Avenue N. Magnolia Avenue Intersection Traffic Counts: 50,000+ Cars Per Day
Property description continued Site Plan Subject Property La Palma Avenue 1019-E 1019-D 1019-C 1019-B 1019-A N. Magnolia Avenue v Suite Tenant 1019-A Taqueria De Anda 1019-B Churrocholic 1019-C Hiccups 1019-D Firehouse Subs 1019-E Waba Grill *Site Plan is for representation purposes only and is not to scale. Shops at Magnolia & La Palma - Anaheim, CA Marcus Millichap Activity ID: X0100000 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc.
Property description continued Property Development Photos Shops at Magnolia & La Palma - Anaheim, CA Marcus Millichap Activity ID: X0100000 11 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc.
Property description continued Regional Map Subject Property Shops at Magnolia & La Palma - Anaheim, CA Marcus Millichap Activity ID: X0100000 12 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc.
Market Overview continued Location Overview The City Of Anaheim and a positive city image. From the Anaheim, CA Website - www.anaheim.net The city of Anaheim is an innovative, service-oriented and responsive partner to businesses. The Economic Development program staff facilitates the retention, growth, and expansion of businesses by communicating and providing business-friendly programs and services that are aimed toward a balanced economy, a net increase in city revenues A superior lifestyle is what Anaheim offers for businesses and residents by providing benefits, services and recreational amenities unlike anywhere else in the world. No other city can boast of world-class business districts, golf courses, quality neighborhoods, theme parks, arenas, a stadium, a convention center and a Mediterranean climate - attributes that make Anaheim the finest in Southern California living. Anaheim boasts a diverse business community that has been established through effective planning, incentives, and business assistance. It has attracted big-name market performers to create and bolster power centers that infuse neighborhoods with convenient shopping and business opportunities. Anaheim has long been a center for industrial and technology companies and provides the right resources for manufacturers to remain competitive. An outstanding location is one of the primary reasons businesses and residents call Anaheim their home. Look at a map of Southern California and you will find that Anaheim is ideally situated in the middle of one of the world s largest economies. Airports, seaports, freeways and railways are all easily accessible from Anaheim. Close proximity to the ocean, mountains, lakes and deserts are reasons why Anaheim is the location of choice by over 15,000 businesses and 328,000 residents. Shops at Magnolia & La Palma - Anaheim, CA Marcus Millichap Activity ID: X0100000 14
Market Overview Demographic Summary v v POPULATION 1-MILE 3-MILES 5-MILES 2000 Population 25,038 270,083 614,646 2010 Population 26,196 280,876 634,768 2014 Population 27,029 292,373 657,769 2019 Population 27,354 296,601 665,460 HOUSEHOLDS 1-MILE 3-MILES 5-MILES 2000 Households 7,467 79,884 183,361 2010 Households 7,413 80,789 185,586 2014 Households 7,713 84,673 193,505 2019 Households 7,818 86,111 196,146 2014 Average Household Size 3.43 3.39 3.32 2014 Daytime Population 10,105 73,970 227,005 2000 Owner Occupied Housing 51.46% 45.70% 54.72% 2000 Renter Occupied Housing 46.83% 51.80% 42.98% 2000 Vacant 1.71% 2.50% 2.30% 2014 Owner Occupied Housing 50.69% 44.87% 54.07% 2014 Renter Occupied Housing 49.31% 55.13% 45.93% 2014 Vacant 1.27% 0.99% 0.84% 2019 Owner Occupied Housing 50.52% 44.64% 53.88% 2019 Renter Occupied Housing 49.48% 55.36% 46.12% 2019 Vacant 1.31% 0.98% 0.88% v INCOME 1-MILE 3-MILES 5-MILES $0 - $14,999 11.9% 10.6% 9.3% $15,000 - $24,999 9.1% 10.1% 9.4% $25,000 - $34,999 10.0% 11.4% 9.8% $35,000 - $49,999 14.2% 15.1% 13.5% $50,000 - $74,999 19.3% 19.2% 18.6% $75,000 - $99,999 13.9% 13.0% 13.4% $100,000 - $124,999 9.5% 8.9% 10.0% $125,000 - $149,999 5.5% 4.9% 5.9% $150,000 - $199,999 4.0% 4.1% 5.5% $200,000 - $249-999 1.1% 1.1% 1.8% $250,000+ 1.6% 1.9% 2.8% 2014 Median Household Income $55,412 $53,407 $60,095 2014 Per Capita Income $20,644 $20,949 $24,392 2014 Average Household Income $71,862 $71,475 $82,025 Shops at Magnolia & La Palma - Anaheim, CA Marcus Millichap Activity ID: X0100000
Market Overview continued Demographic Summary Geography - 5 Miles Population In 2014, the population in your selected geography is 657,768. The population has changed by 7.01% since 2000. It is estimated that the population in your area will be 665,459 five years from now, which represents a change of 1.16% from the current year. The current population is 49.43% male and 50.56% female. The median age of the population in your area is 34.9, compare this to the Entire US average which is 37.3. The population density in your area is 8,374.09 people per square mile. Households There are currently 193,504 households in your selected geography. The number of households has changed by 5.53% since 2000. It is estimated that the number of households in your area will be 196,146 five years from now, which represents a change of 1.36% from the current year. The average household size in your area is 3.31 persons. Income In 2014, the median household income for your selected geography is $60,095, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 23.07% since 2000. It is estimated that the median household income in your area will be $69,202 five years from now, which represents a change of 15.15% from the current year. The current year per capita income in your area is $24,391, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $82,024, compare this to the Entire US average which is $74,533. Race & Ethnicity The current year racial makeup of your selected area is as follows: 45.76% White, 3.08% Black, 0.48% Native American and 25.51% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 44.89% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Employment In 2014, there are 227,004 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 57.95% of employees are employed in white-collar occupations in this geography, and 42.01% are employed in blue-collar occupations. In 2014, unemployment in this area is 7.04%. In 2000, the average time traveled to work was 30.0 minutes. Shops at Magnolia & La Palma - Anaheim, CA Marcus Millichap Activity ID: X0100000 16 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc.
Ron Duong First Vice President Investments Director, National Retail Group (949) 419-3233 direct ron.duong@marcusmillichap.com License: CA 01438643 Ben Carlile Investment Analyst Team Manager (949) 419-3304 direct ben.carlile@marcusmillichap.com License: CA 01949032 OFFICES NATIONWIDE www.marcusmillichap.com