*actual location nvestent erin inle enant...kitchen. that cook was colonel harland sanders, of...

CIRE PartnersCOMMERCIAL INVESTMENT REAL ESTATE

*Actual Location

Investment Offering - Single Tenant 849 S Baldwin Avenue | Arcadia (Los Angeles County), CA 91007

For more information contact: Andrew Slade, Executive Vice President (619) 727-2062Renato Lorja, Investment Associate (619) 727-2067

Confidentiality & Disclaimer The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended only to be reviewed by the party receiving it from CIRE Brokerage Services Inc. dba CIRE Partners (hereafter “CIRE Partners”) and should not be made available to any other person or entity without the written consent of CIRE Partners. This Offering Memorandum 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. CIRE Partners 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 regulators, 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, CIRE Partners has not verified, and will not verify, any of the information contained herein, nor has CIRE Partners conducted any investigation regarding theses 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. This is not an appraisal. Please consult your CIRE Partners agent for more details. The information contained herein was obtained from sources believed reliable, however, CIRE Partners makes no guaranties, warranties or representations as to the completeness thereof. This document has been prepared by CIRE Partners for advertising and general information only. CIRE Partners excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.

Andrew Slade(619) 727-2062 direct [email protected] CA DRE #01746250

For more information contact:

Renato Lorja(619) 727-2067 direct [email protected] CA DRE #01940384 ta

ble

of c

onte

nts

Investment Offering - Single Tenant 849 S Baldwin Avenue | Arcadia (Los Angeles County), CA 91007

section Iexecutive summary

section IIproperty description

section IIIfinancial analysis

section IVmarket information

section Vtenant profiles

CIRE Partners is pleased to exclusively offer for sale a fee simple absolute NNN co-branded KFC/Taco Bell drive-thru located at 849 S. Baldwin Avenue in the affluent Arcadia market of Los Angeles County. With its ideal location, long lease term, rent increases, limited QSR competition, and desirable intrinsic real estate value this is one of the most desirable net-leased transactions on the market.

The subject property is strategically located on a retail thoroughfare with traffic counts exceeding 64,000 VPD at the major corner intersection of S Baldwin Ave and Huntington Ave. Property is positioned across the 1,462,950 square foot Westfield Santa Anita mall and Santa Anita Park, which are located directly off the highly traveled 210 Freeway and approximately seven miles from Pasadena. Westfield Santa Anita is the premier shopping and entertainment destination for the San Gabriel Valley, including the affluent neighborhoods of Hastings Ranch and Sierra Madre. The mall has an approximate 233 retailers, ±$459,700,000 in retail sales and ±14,000,000 annual customer visits. Santa Anita Park is a thoroughbred racetrack in Arcadia, California, United States. It offers some of the most prominent racing events in the United States during the winter and in spring. Today, Santa Anita Park brings a total attendance of approximately 500,000 people for the horse races, in addition to over 400,000 satellite betters. Resulting in wagers totaling over $726 Million per year. Recognized as a one of the wealthier areas in Los Angeles County, the average household income from the subject property is $108,862 within a 3-mile radius.

property snapshot

849 S Baldwin Avenue | Arcadia, CABuilt in 19772,026 SF Situated on 0.57 AcresSingle Tenant Net Leased - RetailFee-Simple Ownership

pricing summaryPurchase Price $2,983,000NOI $111,845CAP Rate 3.75%Lease Term ±10.5 years remaining

*Representative Photo

executive summarypage 3

849 S Baldwin Avenue | Arcadia, CA

investment overviewAddress 849 S Baldwin Avenue | Arcadia, CA

APN 5783-010-032

Square Footage 2,026

Year Built 1977

Purchase Price $2,983,000

CAP Rate 3.75%

NOI $111,845

Parking 34 spaces (16.78 / 1,000 SF)

Zoning General Commercial (C-2)

Lease Type NNN

Remaining Lease Term ±10.5 Years plus Two (2) Five (5) Year Options

investment highlights• Absolute NNN Lease - No Landlord Responsibilities

• Only Drive-Thru Property on Baldwin Ave for ±1.5 Miles

• Trophy Asset Located in Los Angeles County

• Affluent Area with Average Household Income Exceeding $108,000 within a 3-Mile Radius

• Desirable Dense Infill Location Across the Street from Santa Anita Mall

• Strong Traffic Counts of Over 64,000 Vehicles Per Day at the Corner

Term Annual Rent Monthly Rent Rent / SF CAP Rate

Years 1-5 $103,560 $8,630 $4.26 3.47%

Years 6-10 $111,854 $9,321 $4.60 3.75%

Years 11-15 $120,802 $10,067 $4.97 4.05%

1st Option (Years 16-20) $130,467 $10,872 $5.37 4.37%

2nd Option (Years 21-25) $140,892 $11,742 $5.79 4.72%


property descriptionpage 4

lease abstractTenant KFC / Taco Bell

Lease Commencement 02/24/2012

Lease Expiration 02/28/2027

Lease Type Absolute NNN Fee Simple Interest

Renewal Options Two (2) Five (5) Year Options

Annual Rent $111,844.80*

Rent Increases 8% Increase Every Five (5) Years

Roof & Structure Tenant Responsible

Guarantor ±60 Unit Veteran KFC / Taco Bell Operator*Offering Based of February 2017 Rental Increase.


location map

405

105

1010 10

2015 demographics1 mile 3 miles 5 miles

total population 25,254 185,598 476,228

total households 9,203 65,072 158,318

average household income $90,077 $108,862 $96,090



Richard Henry Dana Middle School

First Avenue Jr High School

El Rancho Santa Anita Shopping Center

Hugo Reid Elementary School

Hugo Reid Primary School

Features 200+ Retailers

Arcadia Park

W Huntington Drive

W Duarte Road

S B

ald

win

Ave

nu

e

210


location aerial


Fairview Avenue

Arcadia Avenue

W Duarte Road

W Huntington Road: 33,967 ADT

S B

ald

win

Ave

nu

e:

30,4

75 A

DT

Deposits: $373MM


property aerial



property site plan849 S Baldwin Avenue | Arcadia, CA

Term of Lease: The term of this Lease shall commence on the date above written ("Commencement Date"), and end fifteen (15) years after the Commencement Date, unless sooner terminated as provided herein, with two (2) optional renewal terms each of five (5) years in length. The renewal periods must be exercised through a written notice from the Lessee to the Lessor no later than ninety (90) days from the expiring term.

Absolute Net Lease: It is the intention of the parties that this Lease is an absolute net lease to Lessor. In addition to the Minimum Base Rent, there-fore, Lessee will be responsible for all taxes (including property taxes, personal taxes, etc.), insurance, maintenance, repairs, replacements, utilities, telephone, water, sewer, gas, heat, electricity, garbage disposal, trash disposal and upkeep, in accordance with the more specific provisions hereinafter set forth.

financial analysispage 9


lease abstract

Arcadia, CAArcadia was incorporated in 1903 and became a Charter City in 1951. It is an upper-middle class community of approximately 60,000 people in an 11.2 square mile area located 20 miles east of Los Angeles. The City government is "full-service" with its own Police Department, Fire Department and Library, and a City Council-City Manager form of government

Arcadia is known for beautiful neighborhoods, warm character and a "community of homes" atmosphere. The City places great emphasis on preserving “green space” and its commitment to the environment is evidenced by the large population of healthy trees you will find around town. Arcadia has been designated a Tree City USA for seventeen consecutive years.Arcadians take pride in their well-established traditions and high standards. The Arcadia Unified School District is one of the most highly thought of in the State; high quality medical services are available locally; and an excellent assortment of recreation and leisure activities are offered for all ages.

Arcadia has a broad commercial base with businesses ranging from the very small to the very large. Westfield Santa Anita is a popular regional mall; downtown Arcadia has seen a resurgence in popularity in recent years; south, west and north Arcadia all have thriving businesses; and many consider Santa Anita Race Track to be the finest facility of its type in the country.

With respect for its heritage, appreciation of the present, and excitement about the future, Arcadia remains true to its motto of "Community of Homes" by maintaining a good balance of quality economic development that mixes harmoniously with its primarily residential nature. Arcadians take great pride in their community and the qualities associated with the City are not taken for granted. It is not by accident that Arcadia is referred to as a jewel among southern California communities. Source: www.arcadia.gov

market informationpage 10


market overview

Yum! Brands, Inc., based in Louisville, Kentucky, is one of the world’s largest restaurant companies with nearly 43,000 restaurants in almost 140 countries and territories. Yum! Brands is ranked #218 on the FORTUNE 500 list with revenues of more than $13 billion and in 2014 was named one of the Aon Hewitt Top Companies for Leaders in North America. Our restaurant brands – KFC®, Pizza Hut® and Taco Bell® – are the global leaders of the chicken, pizza and Mexican-style food categories. Yum! Brands has become a truly global company going from approximately 20 percent of profits coming from outside the U.S. to almost 65 percent in 2015. They are a leader in global retail development, opening on average over six new restaurants per day worldwide.

KFC Corporation, based in Louisville, Kentucky, is one of the few brands in America that can boast a rich, decades-long history of success and innovation. It all started with one cook who created a soon-to-be world-famous recipe more than 70 years ago, a list of secret herbs and spices scratched out on the back of the door to his kitchen. That cook was Colonel Harland Sanders, of course, and now KFC is the world’s most popular chicken restaurant chain, specializing in that same Original Recipe® along with Extra Crispy™ chicken, home-style sides and buttermilk biscuits. There are more than 18,000 KFC outlets in 115 countries and territories around the world. And you know what? There’s still a cook in a kitchen in every last one of them, freshly preparing delicious, complete family meals at affordable prices.

Taco Bell Corp., is the nation's leading Mexican-inspired quick service restaurant. Taco Bell serves made to order and customizable tacos, burritos, and specialty gourmet-inspired items and lower calorie Fresco options. Taco Bell Breakfast offers portable, classic items such as the A.M. Crunchwrap, Biscuit Taco and signature breakfast burritos. The company encourages customers to “Live Más,” both through its food and in ways such as its Feed The Beat® music program and its nonprofit organization, the Taco Bell® Foundation™. Taco Bell and its more than 350 franchise organizations have nearly 6,000 restaurants across the United States that proudly serve more than 36 million customers every week. Source: www.yum.com

tenant profilespage 11


tenant profile


Year Founded 1997

Headquarters Louisville, KY

Website www.YUM.com

Total Locations ±43,000

Total Associates ±1,500,000

S&P Credit Rating NYSE: YUM

An oasis of blue skies, sunshine and style, Westfield Santa Anita is the most fashionable day-to-night shopping destination in Los Angeles—and one of its leading visitor attractions. Home to more than 225 top brands, signature dining, and seasonal entertainment experiences, Westfield Santa Anita offers its guests the ultimate retail experience. As part of the Westfield Travel Collection, Westfield Santa Anita is one of a select group of shopping centers located in key U.S. travel destinations, offering travelers outstanding brand and designer shopping, café and signature dining, and entertainment experiences.

The mall's original anchors were JCPenney, The Broadway, Buffum's and J. W. Robinson's. The western wing was demolished and expanded in the late 1980s, completing in 1991 with a Nordstrom store replacing Buffum's. The J.W. Robinson's store became a Robinsons-May store in 1993, and The Broadway was converted into Macy's in 1997. In 1998, Westfield America, Inc., a precursor to Westfield Group, acquired the shopping center from TrizecHahn Corporation and renamed it "Westfield Shoppingtown Santa Anita". "Shoppingtown" was dropped from the "Westfield Shoppington Santa Anita" name in June 2005. On October 1, 2004, the first phase of a planned three-phase expansion of Westfield Santa Anita opened. The $113 million phase added a new food court, a 16-screen AMC Cinema, Dave & Buster's, a Borders bookstore, Sport Chalet, a Cheesecake Factory, and 30 new retailers including American Eagle Outfitters and Hollister Co. After the 2005 Macy's, Inc. acquisition of Robinsons-May, the Robinsons-May store closed in 2006 and remained largely vacant for six years.

On May 7, 2009, the $120 million second phase of the mall's expansion opened. Named "The Promenade", the outdoor expansion added 30 new stores between Macy's and Nordstrom with an emphasis on upscale brands like Coach, Teavana, Williams-Sonoma, Talbots, and Clarks. On November 3, 2012, Forever 21 relocated from its location on the first floor into most of the former Robinsons-May becoming an anchor tenant. The Robinsons-May store was heavily renovated and repartitioned into smaller parts to accommodate this transition. The former Robinsons-May store was used for filming the abandoned Bloomingdale's scenes in the 2008 blockbuster Cloverfield. Source: www.westfield.com



nearby retailers

*Representative Photos *

*

*

*

Santa Anita Park is a thoroughbred racetrack in Arcadia, California, United States. It offers some of the most prominent racing events in the United States during the winter and in spring. Today, Santa Anita Park brings a total attendance of approximately 500,000 people for the horse races, in addition to over 400,000 satellite betters. Resulting in wagers totaling over $726 Million per year.

The location also hosts many different events which draw heavy traffic to the market. The weekend Family Fun Zone features an infield full of activities for your little jockeys, from inflatable jumpers, face painting and carnival games to pony rides, a chance to meet Seabiscuit and the Santa Anita Playground. Plus, you enjoy an exciting day of racing as the horses run around you. They also offer Brunch at the Races, which gives visitors an opportunity to take in a horse race at the legendary Santa Anita Park while enjoying signature brunch bites from over 30 of LA’s hottest restaurants and cocktail samples.

The 626 Night Market is opening its fifth season this summer, and features hundreds of unique vendors and attractions that make the 626 community one of the greatest in the world. The original and largest Asian-themed night market in the United States, 626 Night Market boasts hundreds of food, merchandise, crafts, arts, games, music, and entertainment attractions in one weekend of festivities for the whole family.

The Breeders’ Cup World Championships returns to The Great Race Place in November 2016. The Breeders’ Cup World Championships has become recognized as the ultimate test of a Thoroughbred’s talent and ability. Not only offering a platform to enhance and promote Thoroughbred racing, the Breeders' Cup races provide a powerful year-end championship and a grand spectacle that presents the sport to a worldwide audience. Through the enthusiastic participation of prominent horsemen from around the world who bring their top horses to compete, the Breeders’ Cup has established a reputation for showcasing Thoroughbred racing at the highest level of international competition. Source: www.santaanita.com

21

Santa anita 2014-15 SeaSon HiGHSMUTUEL PAYOFFSWin . . . . . . . . . . . . . . . $176 .20 Turn On (10) (Jan . 3, race 9)Place . . . . . . . . . . . . . . $44 .20 Rock N Bunny (8) (Jan . 23, race 8)Show . . . . . . . . . . . . . . $36 .60 Codacious (7) (Feb . 5, race 8)Win, Stakes Race . . . . $41 .80 Lutine Belle (4) (Jan . 1, race 8, Blue Norther Stakes)Daily Double . . . . . . . . $1,548 .40 Empowering Force (1), Well Maybe (6) (Jan . 3, race 2)Exacta . . . . . . . . . . . . . $1,085 .50 Pax Tecum (5), The B G Way (9) (April 11, race 9)Trifecta . . . . . . . . . . . . $25,462 .40 Solid Wager (4), Logan’s Moon (11), My Samurai Warrior (7) (Feb . 7, race 6)Pick 3 . . . . . . . . . . . . . $9,691 .70 Triunfo (11), Diversy Harbor (3), Tribal Express (5) (Feb . 16, race 8)Pick 4 . . . . . . . . . . . . . $98,000 .10 Well Maybe (6), Justification, Mio Me (3), Athens (2) (Jan . 3, race 5)Pick Six . . . . . . . . . . . . $385,622 .40 McHeat (7), Tester (6), Salsita (8), Wild in The Saddle (5), Birdlover (1), Gold Locket (3) (Mar . 22, races 4-9)Superfecta . . . . . . . . . . $219,322 .10 Solid Wager (4), Logan’s Moon (11), My Samurai Warrior (7), Cautious Giant (6) (Feb . 7, race 6)Super High Five . . . . . . $94,786 .80 Won’t Be Shaken (3), Zippinaroundtown (2), Is This Georgia (10), Albany Candy (4), Honey Nugget (7) (Jan . 4, race 9)

WINS, EARNINGS IN MEETINGJockey’s Purse Earnings . . . . . . . . . . . . . . $3,705,408 . . . . . . . . . . . . . . . . . . . . . . . . . . . Rafael BejaranoMost Wins by Jockey . . . . . . . . . . . . . . . . . 76 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rafael BejaranoMost Stakes Wins by Jockey . . . . . . . . . . . 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Martin GarciaTrainer’s Purse Earnings . . . . . . . . . . . . . . $3,458,048 . . . . . . . . . . . . . . . . . . . . . . . . . .Jerry HollendorferMost Wins by Trainer . . . . . . . . . . . . . . . . . 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Jerry HollendorferMost Stakes Wins by Trainer . . . . . . . . . . . 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bob BaffertOwner’s Purse Earnings . . . . . . . . . . . . . . . $1,349,278 . . . . . . . . . . . . . . . . . . . . . . . . . .Kaleem Shah, Inc .Most Stakes Wins by Horse . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shared Belief

MISCELLANEOUSHighest Claiming Price Paid . . . . . . . . . . . . $75,000 Screaming Tap from Southern Equine Stable LLC to Al and Saundra Kirkwood Oui Bear from Diamond A Racing Corporation to Hronis Racing LLC Dragon Eyes from Pam and Martin Wygod to Aaron JonesTotal Claims for Meet . . . . . . . . . . . . . . . . . 251

ATTENDANCEMEETING, TOTAL . . . . . . . . . . . . . . . . . . . . . .918,295 ON-TRACK . . . . . . . . . . . . . . . . . . . . . . . .499,321 SATELLITES . . . . . . . . . . . . . . . . . . . . . . . .418,974DAILY AVERAGE, TOTAL . . . . . . . . . . . . . . . . .13,504 ON-TRACK . . . . . . . . . . . . . . . . . . . . . . . .7,343 SATELLITES . . . . . . . . . . . . . . . . . . . . . . . .6,161SINGLE DAY, TOTAL . . . . . . . . . . . . . . . . . . . .48,698 (Dec . 26, Opening Day)ON-TRACK . . . . . . . . . . . . . . . . . . . . . . . . . . .40,810 (Dec . 26, Opening Day)SATELLITE . . . . . . . . . . . . . . . . . . . . . . . . . . .9,113 (Mar . 7, Big 'Cap Day)

HANDLEMEETING, TOTAL . . . . . . . . . . . . . . . . . . . . . .$726,156,070 ON-TRACK . . . . . . . . . . . . . . . . . . . . . . . .$87,714,202 SATELLITE . . . . . . . . . . . . . . . . . . . . . . . . .$135,249,423 OUT-OF-STATE . . . . . . . . . . . . . . . . . . . . .$289,578,217DAILY AVERAGE, TOTAL . . . . . . . . . . . . . . . . .$10,678,766 ON-TRACK . . . . . . . . . . . . . . . . . . . . . . . .$1,289,915 SATELLITE . . . . . . . . . . . . . . . . . . . . . . . . .$1,988,962 OUT-OF-STATE . . . . . . . . . . . . . . . . . . . . .$4,258,503SINGLE DAY, TOTAL . . . . . . . . . . . . . . . . . . . .$22,196,151 (Mar . 7, Big ‘Cap Day) ON-TRACK . . . . . . . . . . . . . . . . . . . . . . . .$3,747,627 (Apr . 4, Santa Anita Derby Day) SATELLITE . . . . . . . . . . . . . . . . . . . . . . . . .$4,249,422 (Mar . 7, Big ‘Cap Day) OUT-OF-STATE . . . . . . . . . . . . . . . . . . . . .$14,665,276 (Mar . 7, Big ‘Cap Day)PICK SIX (including carryover) . . . . . . . . . . . .$997,437 (Apr . 19, Closing Day)PICK SIX (single day pool) . . . . . . . . . . . . . . .$905,539 (Apr . 19, Closing Day)PICK 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,425,025 (Mar . 7, Big 'Cap Day)PICK 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,497,496 (Jan . 4, Monrovia Stakes)SUPER HIGH 5 (single day pool) . . . . . . . . . . .$1,718,614 (Jan . 1)SUPER HIGH 5 (including carryover) . . . . . . . .$608,181 (Jan . 4, Monrovia Stakes)

Top Five Days - Attendance & HandleON-TRACK ATTENDANCE

December 26 (Opening Day) . . . . . . . . . . . 40,810

April 4 (Santa Anita Derby Day) . . . . . . . . . 38,647

March 7 (Big ‘Cap Day) . . . . . . . . . . . . . . . 26,134

February 7 (Robert B. Lewis S.) . . . . . . . . 21,522

March 28 (Tokyo City Cup) . . . . . . . . . . . . 15,078

TOTAL ATTENDANCE

December 26 (Opening Day) . . . . . . . . . . . 48,698

April 4 (Santa Anita Derby Day) . . . . . . . . . 47,666

March 7 (Big ‘Cap Day) . . . . . . . . . . . . . . . 35,247

February 7 (Robert B. Lewis S.) . . . . . . . . 30,108

March 28 (Tokyo City Cup) . . . . . . . . . . . . 22,175

ON-TRACK HANDLE

April 4 (Santa Anita Derby Day) . . . . . .$3,747,627

December 26 (Opening Day) . . . . . . . .$3,431,886

March 7 (Big ‘Cap Day) . . . . . . . . . . . $3,281,452

February 7 (Robert B. Lewis S.) . . . . $2,895,130

April 11 (Las Cienegas S.) . . . . . . . . . .$2,120,583

TOTAL HANDLE

March 7 (Big ‘Cap Day) . . . . . . . . . . $22,196,151

April 4 (Santa Anita Derby) . . . . . . $21,586,686

February 7 (Robert B. Lewis S.) . . . .$18,059,097

December 26 (Opening Day) . . . . . . $17,026,449

February 28 (Santa Ysabel S.) . . . . . .$14,232,915



nearby attractions

*Representative Photos *

*

*

*

CIRE PartnersCOMMERCIAL INVESTMENT REAL ESTATE

CIRE Partners | 530 B Street, Suite 2050 | San Diego, CA 92101 | www.CIREpartners.com

*actual location nvestent erin inle enant...kitchen. that cook was colonel harland sanders, of...

Documents