Offering Memorandum For Sale Investment Opportunity India Bistro Single Tenant Pad Building 3939 Ming Avenue Bakersfield, CA 93309 PRESENTED BY: Garret Tuckness JJ Woods Senior Vice President Senior Vice President Central California Central California DIRECT +1 661 631 3811 DIRECT +1 661 631 3807 4741 PANAMA EMAIL LANE garret.tuckness@colliers.com OFFERING MEMORANDUM BRE LICENSE # 012323185 EMAIL jj.woods@colliers.com BRE LICENSE # 01420570 COLLIERS INTERNATIONAL P. 1
Table of Contents > INVESTMENT Offering Summary... 4 Investment Highlights... 5 Lease Summary... 6 Parcel Map... 7 Location Aerial... 8 Retail Corridor... 9 Location Map... 10 > MARKET OVERVIEW About Bakersfield... 11 Demographics... 12 COLLIERS INTERNATIONAL P. 2
3939 Ming Avenue Offering Memorandum For Sale Investment Opportunity > Investment COLLIERS INTERNATIONAL
INVESTMENT Offering Summary OFFERING SUMMARY Pricing: $1,400,000.00 Net Operating Income: $95,472.00 Cap Rate: 6.81% PROPERTY SPECIFICATIONS Gross Leasable Area: 4,900 square feet Year Built: 1974 Land Area: 23,086 square feet Property Address: 3939 Ming Avenue, Bakersfield, CA Parcel Number: 440-011-03 COLLIERS INTERNATIONAL P. 4
INVESTMENT Investment Highlights Freestanding corner pad and building situated along the Ming Avenue Retail Corridor. Single Tenant Pad located in the Home Depot Shopping Center. In proximity to Highway 99 and The Valley Plaza Mall (0.4 miles west). Single Tenant NNN Lease in place - Minimal Landlord responsibilities. Other National Tenants in the immedate area include 99 Cents Only, Toys R Us, Ross, Bank of America, Dollar Tree, Food 4 Less, Pet Smart, Starbucks, Chase, Del Taco. Tenant Review from The Bakersfield Californian: http://www.bakersfield. com/entertainment/food/pete-tittl-india-bistro-a-lively-addition-to-local-food/ article_b2ff09c2-724e-11e7-9d07-9f93a493aa9e.html Landlord retains ownership of all Fixtures, Furniture, and Equipment. COLLIERS INTERNATIONAL P. 5
INVESTMENT Lease Summary Lease Summary (1) Tenant Trade Name India Bistro Lease TypeMONTHS Triple-Net (NNN) Tenant Type Local Owner Lease Guarantor Personal Guaranty Roof and Structure Tenant Responsibility Lease Term 120 Months Lease Commencement Date February 1, 2017 Lease Expiration Date January 31, 2027 Term Remaining on Lease 9 Years Option(s) to Extend Two, Five-Year Options (1) All lease provisions to be independently verified by buyer during the due diligence period. Rent Increases Annual Rent Monthly Rent Months 13-24 $95,472.00 $7,956.00 Months 25-36 $97,381.44 $8,115.12 Months 37-48 $99,325.44 $8,277.42 Months 49-60 $101,315.64 $8,442.97 Months 61-72 $103,341.96 $8,611.83 Months 73-84 $105,408.84 $8,784.07 Months 85-96 $107,517.00 $8,959.75 Months 97-108 $109,667.40 $9,138.95 Months 109-120 $111,860.76 $9,321.73 Option 1: Year 1 $114,097.97 $9,508.16 Option 1: Year 2 $116,379.87 $9,698.32 Option 1: Year 3 $118,707.43 $9,892.28 Option 1: Year 4 $121,081.50 $10,090.12 Option 1: Year 5 $123,503.06 $10,291.92 Option 2: Year 1 $125,973.10 $10,497.75 Option 2: Year 2 $128,492.46 $10,707.70 Option 2: Year 3 $131,062.24 $10,921.85 Option 2: Year 4 $133,683.44 $11,140.28 Option 2: Year 5 $136,357.02 $11,363.08 Net Operating Income * $95,472.00 *(Based on Months 13-24) COLLIERS INTERNATIONAL P. 6
INVESTMENT Parcel Map Dark N COLLIERS INTERNATIONAL P. 7
INVESTMENT Location Aerial FWY 99 On/Off Ramp at Ming Avenue Ming Avenue Dark Akers Road 42,956 AADT for the intersection of Ming Avenue and Akers Road (2017 counts) COLLIERS INTERNATIONAL P. 8
INVESTMENT Ming Avenue Retail Corridor SUBJECT SITE 3939 Ming Ave N COLLIERS INTERNATIONAL P. 9
INVESTMENT Location Map 3939 Ming Avenue COLLIERS INTERNATIONAL P. 10
3939 Ming Avenue Offering Memorandum For Sale Investment Opportunity > Market Overview COLLIERS INTERNATIONAL
MARKET OVERVIEW About Bakersfield # Employer BAKERSFIELD TOP EMPLOYERS # of Employees 1 County of Kern 7,475 2 The Giumarra Companies 4,200 3 Grimmway Farms 3,500 4 Bolthouse Farms 2,000 5 Bakersfield Memorial Hospital 1,400 6 City of Bakersfield 1,300 7 Mercy Hospitals of Bakersfield 1,200 7 ARB 1,200 9 Kern Medical Center 1,200 10 State Farm Insurance 1,045 11 Sun World 1,025 12 Chevron 1,000 13 San Joaquin Community Hospital 880 14 Andrews Ag 800 15 Sun Pacific 800 16 Paramount Farms 800 17 California State University, Bakersfield 600 18 Aera Energy 600 19 Clinica Sierra Vista 600 20 Kaiser Permanente 500 Bakersfield is a major city near the southern end of the San Joaquin Valley in Kern County, California. It is roughly equidistant between Fresno and Los Angeles 110 miles to the north and south respectively. In the 2010 census, the city s population was 347,483, making it the 9th largest city in California. The city is currently in a state of rapid growth. Over the 40-year period between 1970 and 2010, it has grown 400% (from 70,000 to 347,000), making it one of the fastest growing cities in California. Bakersfield has a very diverse economy. It is the seat of the most productive oil producing county with approximately 10% of the nation s domestic production, and the fourth most productive agricultural county (by value) in the United States. Other industries include natural gas and other energy extraction, aerospace, mining, petroleum refining, manufacturing, distribution, food processing, and the city serves as the home for both corporate and regional headquarters of companies engaged in these industries. Several companies have moved to Bakersfield because of its inexpensive land and access to the rest of America, as well as international ports in both Los Angeles and Oakland. Other companies have opened regional offices and non-oil/ agricultural businesses because of Bakersfield s and Kern County s business friendly policies, such as having no local utility or inventory taxes. Source: Wikipedia COLLIERS INTERNATIONAL P. 11
MARKET OVERVIEW Demographics DEMOGRAPHICS 2017A 1 mile 3 miles 5 miles Q2 2017 Employees 9,696 63,041 133,615 Q2 2017 Establishments 704 5,891 11,048 Total Population 22,335 145,988 319,311 Total Households 8,167 49,929 101,203 Total Housing Units 8,729 52,344 106,380 Occupied Housing Units 93.6% 95.4% 95.1% Vacant Housing Units 6.5% 4.6% 4.9% Average Household Income $49,381 $63,567 $68,080 Median Household Income $35,891 $45,196 $47,976 Per Capita Income $18,100 $21,895 $21,726 COLLIERS INTERNATIONAL P. 12
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 3939 Ming Avenue, Bakersfield, 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 by Colliers International 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 International, 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 4741 Panama Lane, Bakersfield, 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.