COLONY PLAZA A GROCERY-ANCHORED RETAIL CENTER LOCATED IN NORTHERN CALIFORNIA Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, California License Number 01385740.
COLONY PLAZA RIPON, CALIFORNIA ` MAJOR TENANTS INCLUDE: TENANT SIZE (SF) LEASE EXP. SAVE MART SUPERMARKETS (GROUND LEASE) 51,199 March 2027 ESMERALDA S AUTHENTIC MEXICAN 3,400 April 2027 COUNTRY SKILLET 2,200 March 2027 SUPERCUTS 1,000 March 2022 INVESTMENT OVERVIEW HFF has been exclusively retained by Ownership to offer qualified investors the exciting opportunity to acquire the fee simple interest in Colony Plaza (the Property ), a 73,199 SF (1) grocery-anchored shopping center located in Ripon, California. The Property is 92% leased and anchored by Save Mart Supermarkets operating on a long-term fee simple ground lease extending through 2027. This opportunity provides great upside potential to lease-up the remaining available suites and to develop the two pad sites. Colony Plaza is well located just off of Highway-99 with prominent pylon signage providing visibility to over 110,000 cars per day. Average incomes exceed $120,000 within a 1-mile radius. (1) SF excludes potential development of Pads 1 (5,000 SF) and Pad 3 (3,000 SF) PROPERTY SUMMARY 1140, 1220, 1222, 1290 W. Colony Road, ADDRESS 1452 Goodwin Drive & 450 Brady Lane Ripon, California % LEASED 92.4% SQUARE FEET 73,199 IN-PLACE NOI $364,811 SITE AREA PARKING RATIO ±10.36 Acres 5.70 / 1,000 SF YEAR BUILT 2006/2007 2
CALIFORNIA GROCERY-ANCHORED RETAIL CENTER INVESTMENT HIGHLIGHTS GROCERY-ANCHORED SHOPPING CENTER IN CALIFORNIA S CENTRAL VALLEY Grocery-anchored by Save Mart Supermarkets ($4.5B sales/213 stores) on a long-term ground lease through 2027, providing a consistent, daily needs draw to the Property. $ FEE SIMPLE GROUND LEASE WITH SAVE MART SUPERMARKETS PROVIDES EMBEDDED VALUE & DOWNSIDE PROTECTION Save Mart Supermarkets is paying less than $0.16/SF/ month + NNN, an extremely low rent, providing investors embedded value and downside protection. SAVE MART SUPERMARKETS PERFORMANCE (YEAR ENDING JUNE-2017) PROPERTY SF ANNUAL SALES SALES/SF ANNUAL + NNN RENT TOTAL RENT $/SF HEALTH RATIO COLONY PLAZA 51,199 $21,999,026 $429.68 $212,155 $4.14 0.96% SAVE MART SUPERMARKETS SALES GROWTH AT COLONY PLAZA YE JUN-17 YE JUN-16 YE JUN-15 YE JUN-14 YE JUN-13 4YR. SALES GROWTH ANNUAL GROWTH $429.68 $424.70 $411.23 $386.96 $371.21 15.75% 3.94% #91 #21 #34 #5GUIDE RANKING FOR AMERICA S LARGEST PRIVATE COMPANIES (FORBES 2016) RANKING FOR THE TOP 50 LARGEST U.S. GROCERY CHAINS (PROGRESSIVE GROCER 2016) RANKING FOR TOP RETAIL CHAINS (THE BALANCE 2013) RANKING FOR THE TOP 50 FASTEST GROWING GROCERY CHAINS (CHAIN STORE 2010) 3
COLONY PLAZA RIPON, CALIFORNIA INVESTMENT HIGHLIGHTS (CONTINUED) STRONG GROCERY STORE SALES WITH GROWTH Save Mart Supermarkets generates sales of almost $22M (±$430 PSF) and shows positive sales growth (±16% over the past four years) with an outstanding health ratio below 1.0%. SIGNIFICANT VALUE-ADD UPSIDE VIA THE LEASE-UP OF AVAILABLE SPACE AND POTENTIAL PAD DEVELOPMENT Opportunity to create significant value through the lease-up of available space (5,560 SF), and the potential development of the Pad 1 (±5,000 SF buildable) and Pad 3 (±3,000 SF buildable). LACK OF COMPETITION The nearest comparable grocer is over a 5-mile drive from the Subject, resulting in increased traffic to Colony Plaza which has almost 20,000 residents within a 3-mile radius. EXCELLENT VISIBILITY, LOCATION AND ACCESS Colony Plaza has prominent signage along Highway-99 exposing the center to over 110,000 cars per day. This is in addition to the considerable traffic off of Colony Rd., Goodwin Dr. and Brady Ln. totaling an additional 15,000 vehicles per day. 4
CALIFORNIA GROCERY-ANCHORED RETAIL CENTER LOCATION MAP SMF COLONY PLAZA OAK SFO SJC MAJOR AIRPORTS: OAKLAND INT L AIRPORT (OAK) SACRAMENTO INT L AIRPORT (SAC) SAN JOSE INT L AIRPORT (SJC) SAN FRANCISCO INT L AIRPORT (SFO) 64 Miles 76 Miles 77 Miles 84 Miles 5
R COLONY PLAZA RIPON, CALIFORNIA DEMOGRAPHICS N SAVE MART CENTER 3-MILE 5-MILE 2022 POPULATION PROJECTION 19,548 55,905 2017 POPULATION ESTIMATE 18,330 52,226 POPULATION % GROWTH (2017-2022) 6.6% 7.0% 2017 EST. AVERAGE HOUSEHOLD INCOME $108,862 $98,109 RIPON HIGH SCHOOL RIPON CHRISTIAN SCHOOLS 99 COLONY PLAZA CROSSFIT 110,000 VEHICLES PER DAY TRUCK TERMINALS COLONY PLAZA PYLON SIGNAGE AFFLUENT TRADE AREA Average household income exceeds $120,000 within a 1-mile radius and nearly $110,000 within a three-mile radius. W. COLONY ROAD JACK TONE ROAD 6
CALIFORNIA GROCERY-ANCHORED RETAIL CENTER INVESTMENT HIGHLIGHTS (CONTINUED) STRONG TENANT SALES Average sales per square foot is is nearly $415 for those tenants that report (Save Mart Supermarkets, Esmeralda s Authentic Mexican, Masumi, My Thai Cuisine, and Pro Nails). INSTITUTIONALLY MANAGED ASSET The Property has been meticulously maintained by institutional ownership significantly reducing future capital costs. UNENCUMBERED ASSET The Property is being delivered free and clear of existing financing, providing the opportunity to take advantage of the historically low interest rate environment and enhanced leveraged returns. 7
COLONY PLAZA RIPON, CALIFORNIA INVESTMENT OVERVIEW STE TENANT SF % NRA LEASE EXP. 1-1 Vacant 1,080 1.5% n/a 1-2 Pro Nails 1,140 1.6% Jan-19 1-3 Golden Bear Physical Therapy 1,600 2.2% Mar-22 1-4 Vacant 1,480 2.0% n/a 1-5 My Thai Cuisine 1,300 1.8% Jul-22 1-6 Supercuts 1,000 1.4% Mar-22 1-7 Esmeralda's Authentic Mexican 3,400 4.6% Apr-27 2-1 Masumi 2,000 2.7% Oct-18 2-2 Vacant 1,800 2.5% n/a 2-4 Country Skillets 2,200 3.0% Mar-27 MJR Save Mart Supermarkets 51,199 69.9% Mar-27 PAD 2-1 Singh Indian (OFS)* 1,300 1.8% Nov-22 PAD 2-2 Eyebrow Threading 900 1.2% Dec-19 PAD 2-3 Vacant 1,200 1.6% n/a PAD 2-4 H&R Block 1,600 2.2% Apr-18 TOTAL AVAILABLE SF 5,560 7.6% TOTAL OCCUPIED SF 67,639 92.4% TOTAL OVERALL SF 73,199 *OFS - Out For Signature 8
CALIFORNIA GROCERY-ANCHORED RETAIL CENTER SITE PLAN W COLONY RD SHOPS 2 NOT BUILT 2-4 2-1 PAD 3 2-3 2-2 2-1 2-2 2-4 PAD 2 1-6 1-5 1-4 1-3 1-2 1-1 P NO AD TB 1 UI LT BA RD YL N GOODWIN DR 1-7 9
COLONY PLAZA A GROCERY-ANCHORED RETAIL CENTER LOCATED IN NORTHERN CALIFORNIA INVESTMENT SALES ADVISORS GLEB LVOVICH 949.798.4115 glvovich@hfflp.com CA RE Lic. #01496699 BRYAN LEY 310.407.2120 bley@hfflp.com CA RE Lic. #01458927 ERIC KATHREIN 415.510.6961 ekathrein@hfflp.com CA RE Lic. #01896107 ASSOCIATE MARK DEGIORGIO 949.798.4138 mdegiorgio@hfflp.com CA RE Lic. #02026853 DEBT GUIDANCE PETER SMYSLOWSKI 415.276.6950 psmyslowski@hfflp.com CA RE Lic. #01301231 MARKET & LEASING EXPERT JEANETTE WOERMAN-MASON Brekke Real Estate 209.571.7230 jeanette@brekkere.com CA RE Lic. #01748696 www.hfflp.com ATLANTA AUSTIN BOSTON CAROLINAS CHICAGO DALLAS DENVER HOUSTON INDIANAPOLIS LOS ANGELES MIAMI NEW JERSEY NEW YORK CITY ORANGE COUNTY (CA) ORLANDO PHILADELPHIA PHOENIX PITTSBURGH PORTLAND (OR) SAN DIEGO SAN FRANCISCO TAMPA WASHINGTON, D.C. LONDON 2017 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 24 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 sales, 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.