9510 s vermont avenue...9510 s vermont ave., los angeles, ca 90044 property name lease summary cap...

OFFERING MEMORANDUM

BRAND NEW CONSTRUCTION

5% CAP RATE WITH ADDITIONAL UPSIDE

10-YEAR NNN LEASE IN SOUTH LA

MAIN GROCERY STORE WITHIN 1.7 MILES

ONE OF THE LARGEST FAMILY DOLLAR

STORES

SIGNALIZED CORNER

9510 S VERMONT AVENUE9510 S Vermont Ave • Los Angeles, CA 90044

2

NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. 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, PCB’s or asbestos, the 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 its occupancy of the subject property. The information contained in this Marketing Brochure 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. Marcus &

Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.

2018 Marcus & Millichap. All rights reserved

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is

not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or

commercial listing of Marcus & Millichap, and it is solely included for the purpose of providing tenant lessee information about this listing to prospective

Activity ID:

A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N L Y .

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www.marcusmillichap.com

01 02INVESTMENT HIGHLIGHTS EXECUTIVE SUMMARY

03 04FINANCIAL ANALYSIS TENANT OVERVIEW

05 06REGIONAL MAPSOUTH LOS ANGELES

TABLE OF CONTENTS

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07DEMOGRAPHICS

08PHOTOS

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Brand New Construction for an Essential Business

One of the largest Family Dollar stores in Southern California

10-Year NNN Lease with Landlord Responsibilities limited to

structural portions

The only Grocery Store under 1.7 miles

Investment Grade Tenant with Corporate Guaranteed Lease

Easy Access and Excellent Visibility at a Signalized Corner

Location, Visible to 32,000+ Cars/Day at the Intersection of

Vermont Ave and West Colden Ave. Close to the 110 and 105

Freeways

Growth momentum of the neighborhood facilitated by the official

South Los Angeles Community Plan

Close to the rapidly developing Inglewood area, and only 2.5

miles away from the brand new SoFi Stadium ($2.6B)

Opportunity to obtain a stable stream of cash flow asset.

Additional upside from a roof antenna lease with Crown Castle

9510 S Vermont Ave., Los Angeles, CA 90044

INVESTMENT

HIGHLIGHTS

01


EXECUTIVE SUMMARY

Marcus & Millichap is pleased to present 9510 South Vermont, a newly constructed Family Dollar located in

South Los Angeles, a few miles east of the booming city of Inglewood, California. With approximately 275 feet of

frontage along Vermont Ave, the property is well positioned traversing corner to corner from West 95th St to West

Colden Ave, a signalized corner, with points of ingress and egress on Vermont Ave and West Colden Ave.

Sitting in such close proximity to the highly attractive, rapidly developing Inglewood area, the building is well

positioned to capture the upside growth from the brand new SoFi Stadium ($2.6B) that is under construction

approximately 2.5 miles away. The SoFi Stadium will be the future home of the Los Angeles Rams and Chargers as

well as the host of Super Bowl LVI and the 2028 Olympics. Furthermore, the growth momentum of the neighborhood

where the property is located, is facilitated by the official South Los Angeles Community Plan that has outlined steps

to foster the revitalization of properties along the commercial corridors throughout the Community Plan Area.

Additionally, the Pointe on Vermont, a proposed 50-unit apartment project on 7600 South Vermont Ave, is further

revitalizing the area.

9510 South Vermont is a rare opportunity, to obtain a 13,500 SF building that sits on .59 acres lot, with a credit

tenant with a 10-year NNN lease that is a grocery store (in a neighborhood where there are no other groceries

stores in 1.7 miles), offering stable cash flow and strong NOI. Furthermore, this Family Dollar store is over 50%

larger than the typical store (8,320 SF), and is one of the largest in Southern California, making it a superior asset

among its category. In addition to the attractive development area, the building is close to schools, churches, and

restaurants. The property offers great accessibility, being both positioned close to the 110, and 105 Freeways as well

as close proximity to LAX, the Los Angeles Coliseum, Banc of California Stadium, downtown LA, and major

boulevards, all conveniently reachable via bus transportation. Additionally, the property offers great upside from a

roof antenna lease with Crown Castle that will pay 50% of the monthly recurring rent from future agreements with

those wireless tenants or from Existing Wireless Tenants that expand outside the current lease.

Dense demographics include over 55,000 people residing within a 1-mile radius and approximately 400,000

people residing within a 3-mile radius, generating, traffic volume of 32,000+ daily cars. This is a rare opportunity to

obtain a stable stream of cash flow asset located in a spectacular developing area.

02


PROPERTY NAME

LEASE SUMMARY

CAP Rate Price Price/SFInitial

Cash-on-Cash Tenant: Family Dollar

5.00% $3,900,000 $288.89 4.15% Guarantor: Corporate Guarantee

Credit Rating: Baa3

Estimated Rent Commencement: 06/18/2020

Operating Information Initial Lease Term 10 Years

NOI as of 2020 $195,000

Options:

1st Year Option: $204,750.00

2nd Year Option: $214,987.08

3rd Year Option: $225,736.08

4th Year Option: $237,023.04

5th Year Option: $248,874.00

Rent/SF $14.44

Gross Leasable Area 13,500 SF

Financing Lease Type: NNN

New Acquisition Financing $2,145,000

Loan To Value 55.00% $14.44/SF

$1.20/SF/Month

$195,000 Annual Rent

Interest Rate 3.95% Base Rent:

Amortization Period 30 Years

Loan Constant 5.69%

Annual Debt Service Payment $122,146Rent Increases: No

Year 1 Debt Service Coverage 1.60

Year 1 Debt Yield 9.09%

Year 1 Net Cash Flow After Debt Service $72,854

FINANCIAL ANALYSIS

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* This Cap Rate is not inclusive of additional upside generated from roof antenna

lease with Crown Castle

* Loan Quotes subject to change. Please contact your Marcus & Millichap Capital

Corporation representative for a more up to date quote.


THE OFFERING

Property Family Dollar

Property Address 9510 S Vermont Ave

Los Angeles, CA 90044

Price $3,900,000

Capitalization Rate 5.00%

Price/SF $288.89

PROPERTY DESCRIPTION

Year Built / Renovated 1984/2020

Gross Leasable Area 13,500 SF

Zoning LAC2

Type of Ownership Fee Simple

Lot Size 0.59 Acres

LEASE SUMMARY

Property Subtype Net Leased Discount

Tenant Family Dollar

Rent Increases At Renewal Options

Guarantor Corporate Guarantee

Lease Type NNN

Lease Commencement 6/18/2020

Lease Expiration 3/31/2029

Lease Term 10 Years

Term Remaining on Lease 9 Years

Renewal Options 5 Options of 5 Years Each

Landlord ResponsibilityMaintain and repair all structural portions

of the building’s interior and exterior.

Tenant ResponsibilityProperty & liability insurance; Maintain and

repair all interior non-structural portions of

the building. Real Estate Taxes.

Right of First Refusal No

ANNUALIZED OPERATING INFORMATION

INCOME

Net Operating Income $195,000

RENT SCHEDULE

YEARANNUAL

RENT

MONTHLY

RENTRENT/SF CAP RATE

2020-2029 $195,000 $16,250 $14.44 5.00%

2029-2034 $204,750 $17,062.50 $15.17 5.25%

2034-2039 $214,987.08 $17,915.59 $15.92 5.51%

2039-2044 $225,736.08 $18,811.34 $16.72 5.79%

2044-2049 $237,023.04 $19,751.92 $17.56 6.08%

2049-2054 $248,874 $20,739.50 $18.44 6.38%

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Family Dollar is an American variety store chain. In 2014, Dollar Tree acquired Family Dollar for $8.5

billion dollars. Dollar Tree has over 7,000 locations nationwide. Family Dollar has over 8,000 locations in

all states except Alaska, Hawaii, Oregon and Washington, and is the second largest retailer of its type in

the United States. Family Dollar was headquartered in Matthews, a suburb of Charlotte, North Carolina,

until it was acquired by Dollar Tree and headquarters operations were moved to Chesapeake, Virginia.

Family Dollar has over 60,000 employees in 46 states. Family Dollar has the following departments:

Cleaning, Household, Food and Beverages, Personal Care, Beauty, Health and Wellness, Auto,

Electronics, Office and School Supplies, Parties Supplies and Toys & Crafts.

While other businesses are struggling in this economy, Family Dollar continues to

hire people and has proved to be a recession resistant asset.

✓ 22.8 Billion in Revenue in 2018

✓ 29.1% Growth Rate Earnings in 2018

✓ S&P Credit Rating: “BBB-”

✓ Locations: 15,115 +

✓ Fortune Global 500 Ranked #134

PARENT COMPANY

Dollar Tree, Inc.HEADQUARTERS

Chesapeake, VADATE FOUNDED

1959

PARENT COMPANY NYSE

FDO


TENANT OVERVIEW

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SOUTH LOS ANGELES

05“South Los Angeles is a diverse community that embraces its history, fosters sustainable neighborhoods,

and promotes economic viability for everyone.” South Los Angeles Vision Statement

South Los Angeles contains six redevelopment project areas established by the former Community Redevelopment

Agency of Los Angeles. These redevelopment areas encompass many of South Los Angeles ‘commercial district and

boulevards, and portions of residential neighborhoods. Redevelopment goals include the elimination of blight and creation of

a healthy local economy; production of housing for low-to moderate- income families; removal of structurally substandard

buildings; changes in land use to facilitate commercial development; provision of new public facilities; and expansion of

economic and employment opportunities.

The Six South Los Angeles CRA/LA redevelopment project areas include:

▪ Exposition/University Park

▪ Council District 9 Corridors

▪ Western/Slauson

▪ Vermont/Manchester

▪ Mid-City Corridors

▪ Pico Union 2

9510 S Vermont Ave

CLOSE PROXIMITY TO

110 FreewayBret Harte Preparatory Middle School95th Street Preparatory SchoolYMCA Wellness & Aquatic CenterAlgin Sutton Recreation Center7-ElevenLocal Favorite Restaurants Including:

FabuCakes-N-MoreCasa HondurasMonster BurgerPlaya DoradaPizza HutDomino’s PizzaKFC


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South LA: Transit Oriented Areas

9510 S Vermont Ave

REGIONAL MAP

06

CLOSE PROXIMITY TO

110 and 105 Freeways

Bret Harte Preparatory Middle School

95th Street Preparatory School

YMCA Wellness & Aquatic Center

Algin Sutton Recreation Center

7-Eleven

Local Favorite Restaurants Including:

FabuCakes-N-More

Casa Honduras

Monster Burger

Playa Dorada

Pizza Hut

Domino’s Pizza

KFC


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DEMOGRAPHICS

07

POPULATION

1 Miles 3 Miles 5 Miles

2023 Projection 56,582 394,694 1,138,150

2018 Estimate 56,690 396,322 1,147,245

INCOME


Average $46,295 $53,547 $56,962

Median $32,293 $38,264 $40,853

Per Capita $13,430 $14,912 $16,078

HOUSEHOLDS


2023 Projection 16,730 111,661 323,814

2018 Estimate 16,308 109,579 319,765

TRAFFIC COUNT

Traffic Volume

S Vermont Ave W 98th St S 32,483

S Vermont Ave W 99th St S 31,296

S Vermont Ave W Century Blvd S 33,491

S Hoover St W 95th St S 15,823

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13

PHOTOS


LAURA ALICE SCATURRO

National Office & Industrial Properties Group

12100 West Olympic BoulevardSuite 350

Los Angeles, California 90064

Direct (310) 909-5472 | Cell (310) [email protected]

License: CA 01942167

INGRID FARIAS-EISNERNational Retail Group

12100 West Olympic BoulevardSuite 350

Los Angeles, California 90064

Direct (310) 909-5449 | Cell (857) [email protected]

License: CA 0207328

mailto:[email protected]

mailto:[email protected]

9510 s vermont avenue...9510 s vermont ave., los angeles, ca 90044 property name lease summary cap...

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