FOR SALE 100% LEASED MULTI-TENANT RETAIL PAD FRESNO, CA Price: $1,200,000 CAP Rate: 6.25% Property Features: 100% Leased Multi-Tenant Retail Pad National and Regional Tenancy Prominent Street Visibility Very Well-Maintained Property Shares a Signalized Intersection with Food Maxx and Rite Aid
Investment Summary Page 2 EXECUTIVE SUMMARY Commercial Retail Associates, Inc. is pleased to have been selected as the exclusive listing agent for the sale of this well-maintained multi-tenant retail pad building located at the hard corner of Fresno Street and B Street in Fresno, California. The approximately 4,200 square foot retail building is 100% leased to a diverse mix of nationally branded tenants. This offering presents an investor with an opportunity to acquire a pride of ownership, 100% leased multitenant retail building occupied by national tenants in a densely populated trade area. INVESTMENT SUMMARY Address Price $1,200,000 CAP Rate 6.25% Net Operating Income $75,013 1060-1068 Fresno Street Fresno, California 93706 RETAILERS: Little Caesars Pizza Advance America T-Mobile (Little Caesars sub-tenant) LOCATION HIGHLIGHTS - The building is fully leased to a mix of tenants that includes Advance America, which has been a tenant since the building was developed in 2002, and Little Caesars (Little Caesars subleased one-half of its space (±1,500 sq. ft.) to T-Mobile) - Positioned at a fully signalized intersection across the street from Kearney Palms Shopping Center, which is anchored by Food Maxx (Save Mart s warehouse concept) and Rite Aid - Located just west of both Highway 99 and downtown Fresno - Limited competing retail space available in the immediate area - Great retail frontage and ingress/egress points - Prominent visibility Occupancy 100% Year Built 2002 Total GLA Land Area 4,200± Square Feet 15,000± Square Feet
Rent Roll / Income and Expenses Page 3 TENANT SQ. FT. MONTHLY BASE RENT MONTHLY NNN LEASE COMMENCEMENT LEASE EXPIRATION RENT ADJUSTMENT OPTIONS / OPTION RENT CAM, TAX, INSURANCE Advance America 1068 Fresno Street Commodoro Pizza, Inc. dba Little Caesars3 1060 Fresno Street 1,200 $ 1,800.00 $ 455.00 02/01/161 01/31/19 FMV in option on 02/01/19 1, 3 - YEAR at FMV PRORATA SHARE2 3,000 $ 4,500.00 $ 1,050.00 09/12/15 09/11/20 10% in months 121 and 181 3, 5-YEAR with 10% Rent Increases in the 2nd and 3rd option TOTAL 4,200 $6,300.00 $1,505.00 PRORATA SHARE4 ESTIMATEDANNUAL OPERATING EXPENSES5 Property Taxes6 $13,500 Property Insurance $ 1,366 Utilities (Shared Water/Sewer) $ 900 Misc. Repairs/Maintenance $ 3,000 Landscape $ 2,400 Total $21,166 SCHEDULED INCOME & EXPENSES: Scheduled Base Rent $75,600 Expense Reimbursements $20,579 Gross Operating Income $96,179 Less Operating Expenses < $21,166 > Net Operating Income $75,013 RENT ROLL NOTES: (1) Original Advance America lease dated 08/31/01 with most recent Amendment extending term commencing 02/01/16 (2) Advance America has a NNN Cap of $455/month until 01/31/19, so model assumes $587/yr not recovered until 1/19 (3) Commodoro subleases 1,500 square feet to Exclusive Wireless, Inc. dba T-Mobile on a 5 year term at $1.75/sf/month+NNN with a 5 year option at $1.93/sf/month+NNN (4) Commodoro controllable CAM not to increase by more than 5% per year, but will pay increased NNN amount related to tax re-assessment (5) Trustee does not have prior year operating expenses, so estimates are used based on current YTD and projected expenses (6) Estimated at 1.125% of $1,200,000
Tenant Profiles Page 4 LITTLE CAESARS Little Caesars is the third-largest pizza chain in the United States, behind Pizza Hut and Domino s Pizza and is the fastest-growing pizza chain in the world. Little Caesars was started by Mike and Marian Ilitch in 1959 in Garden City, Michigan. Little Caesars makes custom pizza as well as offering their pepperoni or cheese hot-n-ready pizzas that you don t need to call ahead for; they re ready whenever you want to go in and pick one up. Their menu also includes sides such as crazy bread (breadsticks), cheese bread, and wings. This is a lease with Commodoro Pizza, Inc., a California Corporation. The franchise entity currently operates 3 locations in the Fresno area and the principal operates 39 total Little Caesars locations located throughout the Western US. ADVANCE AMERICA Advance America Cash Advance was founded in 1997 and is the largest provider of the non-bank cash advance services in the United States. Advance America operates over 2,500 lending centers in 29 states and 18 centers in Canada. Advance America does not franchise any of its centers in the United States or Canada and does not provide pawn lending or similar services. Advance America is a member of the Consumer Financial Services Association of America, which sets best practice standards for its membership. Advance America provides its cash advances in small-denomination, short-term amounts. The advances come due on the customer s next payday. The company s stated goal is to attract customers by offering straightforward, rapid access to short-term funding, while providing high quality, professional customer service. This is a corporate signature lease with Advance America, Cash Advance Centers of California, LLC. T-MOBILE T-Mobile US provides wireless voice, messaging, and data services in the United States, Puerto Rico and the U.S. Virgin Islands under the T-Mobile, MetroPCS and GoSmart Mobile brands. The company operates the third largest wireless network in the U.S. market with over 65.5 million customers and annual revenues of $32 billion. Its nationwide network reaches 98 percent of Americans, through its EDGE 2G/HSPA 3G/HSPA+ 4G/4G LTE networks, as well as through roaming agreements. As of 2011, J. D. Power and Associates, a global marketing-information-services firm, ranked the company highest among major wireless carriers for retail-store satisfaction four years consecutively and highest for wireless customer care two years consecutively. This is a sublease between Commodoro Pizza, Inc., a California Corporation and Exclusive Wireless, Inc., a California corporation. Commodoro Pizza, Inc. leased the 3,000 square feet with the intention of subletting a portion of the space, which they did, with Exclusive Wireless occupying 1,500 square feet and Commodora Pizza, Inc. retaining the remaining 1,500 square foot end cap. Exclusive Wireless, Inc. currently has 36 locations opened throughout California with 9 additional locations pending.
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Location Page 11 Location Overview - Fresno, California Fresno is located in the central San Joaquin Valley 175 miles south of the San Francisco/Bay Area, 215 miles north of Los Angeles, and 110 miles east of the central coast. The county has a diverse population of approximately 1 Million people. Covering an area of more than 6,000 square miles, Fresno is State of California s sixth largest county. Fresno County s economy is based in agriculture and produces more crops in terms of gross value than any other area in the United States. Fresno is home to a wide variety of manufacturing operations many with ties to agriculture in the food processing, meat and dairy industries. Due to its central location within the State of California, Fresno has become a thriving distribution and logistics hub. Distributors can reach nearly all parts of California, a market of nearly 40 million people, overnight by truck. Five major highways pass through Fresno County including Highways 99, 41, 180, 168 and Interstate 5, as well as rail service from Burlington Northern Santa Fe and Union Pacific. Fresno is known as the gateway to the Sierras; and offers a wide variety of outdoor recreational opportunities including Yosemite and Sequoia National Parks, numerous lakes and rivers, snow skiing, water sports and easy access to the central coast popular for surfing, fishing, whale watching and wine. Residents of Fresno also enjoy a very low cost of living relative to California (median home price $195,000), boast an uncongested freeway system, have access to great shopping and entertainment, top ranked schools, opportunities for higher education, including California State University, Fresno, and the mild California climate.
Demographics Page 12 1060 Fresno St Fresno, California 1 MILE RADIUS 2 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS POPULATION 2015 Estimated Population 18,383 55,442 108,838 284,035 2020 Projected Population 18,771 56,666 110,925 290,352 2010 Census Population 17,656 53,663 106,737 277,791 2000 Census Population 15,792 50,606 103,351 263,576 Historical Growth 2000 to 2015 16.4% 9.6% 5.3% 7.8% Projected Change 2015 to 2020 2.1% 2.2% 1.9% 2.2% Fresno, California HOUSEHOLDS 2015 Estimated Households 4,194 13,963 28,560 80,389 2020 Projected Households 4,257 14,156 28,837 81,200 2010 Census Households 4,103 13,777 28,500 80,385 2000 Census Households 3,819 13,124 27,831 78,090 Historical Annual Growth 2000 to 2015 9.8% 6.4% 2.6% 2.9% Projected Annual Growh 2015 to 2020 1.5% 1.4% 1.0% 1.0% AGE 2015 Est. Population Age 19 and Under 32.9% 35.7% 36.1% 35.3% 2015 Est. Population Age 20 to 29 19.4% 18.6% 17.9% 17.4% 2015 Est. Population Age 30 to 39 14.4% 13.8% 13.6% 13.2% 2015 Est. Population Age 40 to 49 11.9% 11.1% 11.2% 11.1% 2015 Est. Population Age 50 to 64 13.1% 13.0% 13.4% 13.9% 2015 Est. Population Age 65 and Over 8.4% 7.9% 7.9% 9.2% 2015 Est. Median age 29 28 28 28 INCOME 2015 Est. Average Household Income $32,421 $35,020 $38,044 $42,649 2015 Est. Median Household Income $22,003 $24,804 $27,102 $30,672 2015 Est. Per Capita Income $9,158 $9,647 $10,453 $12,359 RACE 2015 Est. White Population 35.6% 36.5% 38.6% 40.9% 2015 Est. Black or African American Population 21.4% 15.7% 10.3% 8.9% 2015 Est. Asian Population 8.8% 8.0% 9.9% 11.4% 2015 Est. Native Hawaiian and OPI Population.1%.1%.1%.1% 2015 Est. American Indian and Alaska Native Population 2.1% 2.3% 2.4% 2.2% 2015 Est. Some Other Race Population 28.2% 32.6% 33.8% 31.5% BUSINESS 2015 Total Daytime Population 34,513 103,978 169,856 332,177 2015 Total Number Employees 4,261 15,351 33,466 92,481 2015 Total Daytime at Home Population 14,873 42,282 79,512 200,243
Page 13 DISCLAIMER Commercial Retail Associates, Inc. hereby advises all prospective buyers of property as follows: The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Commercial Retail Associates, Inc. and should not be made available to any other person or entity without the written consent of Commercial Retail Associates, Inc. This Marketing Brochure has been prepared to provide summary, unverified 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. Commercial Retail Associates, Inc. and its Agents have 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, PCB s or asbestos, the property s compliance with 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 occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Commercial Retail Associates, Inc. and its Agents have not verified, and will not verify, any of the information contained herein, nor has Commercial Retail Associates, Inc. and its Agents conducted any investigation regarding these matters and make 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. All property showings are by appointment only. Please consult your Commercial Retail Associates Agent for more details. By accepting this Marketing Brochure, you agree to release Commercial Retail Associates, Inc. and its Agents and hold them both harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.