confidential offering memorandum single tenant net … · the lease calls for 12% escalations...

CONF IDENT IAL OFFER ING MEMORANDUM

2610 N WILMINGTON AVENUE | COMPTON, CA 90222

S INGLE TENANT NET LEASED INVESTMENT

AutoZone

A RETA I L INVESTMENT OPPORTUNITY Ken McLeod Lic. 01181838 T +1 310 550 2515 [email protected]

Jamie Brooks Lic. 01434718 T +1 310 550 2631 [email protected]

Tim Kuruzar Lic. 01778384 T +1 310 550 2671 [email protected]

Jack Roney Lic. 01940597 T +1 310 550 2511 [email protected]

2610 N WILMINGTON AVENUE | AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

© 2015 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property.

You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Macintosh HD:Users:jjung2:Box Sync:GLAOC Marketing:Property Marketing:Beverly Hills:2610 N Wilmington Ave - Compton - KMcLeod:2610 Wilmington_OM_v04JJ.indd

THE OPPORTUNITY

PROPERTY SUMMARY

INVESTMENT H IGHL IGHTS

THE PROPERTY

AER IAL

PARCEL MAP

LOCATOR MAP

S I TE P LAN

ELEVAT ION

THE MARKET

DEMOGRAPHICS

AREA OVERV IEW

INVESTMENT SUMMARY

LEASE SUMMARY

TENANT PROF I LE

1 2 3 4

TABLE OF CONTENTS

3

PROPERTY SUMMARY

Address 2610 N. Wilmington Ave., Compton, CA 90222

Building Size ±6,000 SF

Price $2,566,737

Cap Rate 4.75%

NOI $121,920

NOI Option 1 (June 1, 2025)

$136,560

Asset TypeLand and Building: Freestanding Single Tenant Retail

Price/SF $427.79

Year Built/Renovated 1997/2004

Parking 26 spots / 4.33 per thousand

APN 6152-005-028 - confirm

Traffic CountsN. Wilmington Ave. = ± 22,960 cars per dayEl Segundo Blvd. = ± 18,000 cars per dayTotal = ± 40,960 cars per day

2610 N WILMINGTON AVENUE | THE OPPORTUNITY

INVESTMENT H IGHL IGHTS

• Seasoned Location: Autozone has been operating for 11 years at this location

• Early Lease Extension: Autozone extended their current lease in May 2015 for an additional 10 years

• New 7-Eleven development next door

• Signalized Intersection: High traffic intersection of Wilmington and El Segundo

• Absolute NNN Lease with no landlord responsibilities

• High Traffic Counts: Over 40,000 cars per day at intersection

– Both El Segundo and Wilmington are FWY access roads, with El Segundo accessing the 110 FWY to the West and Wilmington accessing the 105 FWY to the North

• Dense Population: Approximately 950,000 people within 5 miles, and 366,000 people within 3 miles

• Adjacent to newly renovated MLK Community Hospital: $250 million in recent improvements

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2610 N WILMINGTON AVENUE | THE OPPORTUNITY

THE OFFER ING

CBRE’s Investment Property Group is pleased to present this unique opportunity to acquire a seasoned absolute NNN, Corporate leased Autozone in Southern California.

Autozone West initiated an early lease extension for an additional 10 years in May of 2015. The lease calls for 12% escalations during the option periods. Autozone took possession

of the property in 2004, and the building was extensively renovated at that time. The property is well-located on the hard SE corner of N. Wilmington Ave. and El Segundo Blvd. in

the heart of an extremely dense corridor in South Los Angeles. Located just South of the Food 4 Less, Rite Aid anchored 165,000 sf Kenneth Hahn Plaza, and next to a brand new

Corporate 7-Eleven, 2610 N. Wilmington features the rare combination of seasoned tenancy, lease escalations, and strong Southern California Real Estate. These factors indicate

a strong commitment from Autozone and sales with reference to this location

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2610 N WILMINGTON AVENUE | THE PROPERTY

LOCATOR MAP

6


AMENITIES MAP

MARTIN LUTHER KING, JR. HOSPITAL

KENNETH HAHN PLAZA

METRO BLUE LINE

ROSESCRANS AVE

EL SEGUNDO BLVD

ALA

MED

A ST

WILM

ING

TON

AV

E

CEN

TUR

AL A

VE

105

7

2610 N WILMINGTON AVENUE | RENDERING

8

AER IAL


9


PARCEL MAP

*Shared Parking

10


SITE PLAN

11


12

2610 N WILMINGTON AVENUE | INVESTMENT SUMMARY

TENANT Autozone West, LLC (Corporate)

LEASE COMMENCEMENT 2004

LEASE EXTENSION May 2015

LEASE EXPIRATION May 31, 2025

LEASE OPTIONS Two 5 Year Options

LEASE ESCALATIONS 12% during Options

LANDLORD RESPONSIBILITIES None

PRICE $2,566,737

PRICE/SF $427.79

CAP RATE (YR 1-10) 4.75%

Monthly Rent Annual Rent

INITIAL LEASE TERM:(Original Lease Commencement: 2004)

May 2015 - 5/31/25 $10,160 $121,920

Option 1: Dates 6/1/25 - 5/31/30 $11,380 $136,560

Option 2: Dates 6/1/30 - 5/31/35 $12,745 $152,940

RENT SUMMARY

INVESTMENT SUMMARY LEASE/TENANT SUMMARY

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2610 N WILMINGTON AVENUE | TENANT PROFILE

COMPANY/LESSEE AutoZone

FOUNDED 1979

HEADQUARTERS Memphis, TN

NO. OF LOCATIONS 5,006

S&P CREDIT RATING BBB

REVENUE $10.1 Billion

WEBSITE http://www.autozone.com/

For more than 30 years, AutoZone has been committed to providing the best parts, prices and customer service in the automotive aftermarket industry. We have a rich culture and history of going the Extra Mile for our customers and our community.

Today, AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the U.S. http://www.autozoneinc.com/about_us/our_story.html

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2610 N WILMINGTON AVENUE | AREA OVERVIEW

COMPTON

Compton was recently designated as an “Entrepreneurial Hot Spot” by

Cognetics, Inc., an independent economic research firm. Compton made

the national list for best places to start and grow a business, and ranked

#2 in Los Angeles County out of a field of 88 cities. The city’s Planning

and Economic Development department provides a business assistance

program consisting of a comprehensive mix of resources to small business

owners and entrepreneurs. The grocery chains Ralphs and Food 4 Less,

subsidiaries of Kroger, are headquartered in Compton. Gelson’s Market,

a subsidiary of Arden Group, Inc., a holding company, is also based there.

Compton is a city in southern Los Angeles County, California, United States,

situated south of downtown Los Angeles. The city of Compton is one of

the oldest cities in the county and on May 11, 1888, was the eighth city to

incorporate. The city is generally a working class city with some middle-

class neighborhoods and is home to a relatively young community, at an

average 25 years of age, compared to the American median age of 35.

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2610 N WILMINGTON AVENUE | THE MARKET

Source: Nielsen

PO

PU

LA

TIO

N

1 Mile Radius 3 Mile Radius 5 Mile Radius

2015 Population 38,631 366,470 947,771

2020 Population 40,343 382,686 983,645

2010 Population 37,158 352,314 918,059

2000 Population 34,451 334,543 891,601

Growth: 2010 to 2015 3.96% 4.02% 3.24%

Growth: 2015 to 2020 4.43% 4.42% 3.79%

2015 Median Age 28.72 28.98 30.37

2015 Average Age 32.02 31.86 32.99

2015 Households 9,045 85,968 242,245

2020 Households 9,423 89,883 251,731

2010 Households 8,740 82,448 234,178

2000 Households 8,299 78,781 227,487

Growth: 2010 to 2015 3.50% 4.27% 3.44%

Growth: 2015 to 2020 4.17% 4.55% 3.92%

Average Household Size 4.24 4.21 3.88

2015 Average Household Income $46,274 $47,846 $50,884

2020 Average Household Income $46,882 $49,475 $52,777

2015 Median Household Income $37,019 $37,674 $39,180

2020 Median Household Income $37,151 $38,609 $40,212

2015 Housing Units 9,667 91,418 256,406

2015 Occupied Housing Units 9,045 85,968 242,245

2015 Vacant Housing Units 621 5,450 14,161

2015 Owner-Occupied Housing Units 4,790 40,155 107,233

2015 Renter-Occupied Housing Units 4,256 45,814 135,012

2015 Median Home Value $259,264 $279,604 $312,328

2015 Average Home Value $279,053 $311,687 $343,101

ESTIMATED DEMOGRAPHICS

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CBRE | EXCLUSIVE AGENTS

: : Ken McLeod Lic. 01181838 T +1 310 550 2515 [email protected]

: : Jamie Brooks Lic. 01434718 T +1 310 550 2631 [email protected]

: : Tim Kuruzar Lic. 01778384 T +1 310 550 2671

[email protected]

: : Jack Roney Lic. 01940597 T +1 310 550 2511

[email protected]

CBRE, Inc. 1840 Century Park East Suite 900 Los Angeles, CA 90067

confidential offering memorandum single tenant net … · the lease calls for 12% escalations...

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