hesperia, ca 92345 14073 main street shops at...

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Investment Property Offering

Pizza and more!

Shops at Topaz 14073 Main Street Hesperia, CA 92345

14071-14075 Main Street Hesperia, CA 92345

Another Quality Development By:

$15,340,000 (5.8% Cap Rate)

• Newly Constructed Retail Center anchored by 99 Cent Only Stores, Taco Bell and PFF Bank & Trust.

• Very attractive architecture with all retail spaces facing Main Street - Hesperia’s primary retail corridor with a traffic count of over 37,095 cars per day.

• Hesperia is one of California’s fastest growing communities. Population has increased over 35% since 2000 alone.

• 36,163 SF Center with over 70% of the square footage occupied by regional/national tenants.

• The property is located in a retail hub which will include a Super-Wal-Mart, Target, Home Depot, and Fresh n Easy store in 2008.

• No existing financing to assume – Cash or Cash to a new loan. • Property can also be purchased without the Taco Bell and PFF Bank pads for

$11,800,000.

Represented by: Co-Listed with: Bryan Ley Brad Umansky

Sperry Van Ness Progressive Real Estate Partners 800 N. Haven Ave Suite 100 250 West First Street, Suite 321

Ontario, CA 91764 Claremont, CA 91711 (909) 466-2500 (909) 621-9800

Executive Summary – The Offering is comprised of a 36,163 square foot multi-tenant retail center located in Hesperia, CA. The “Shops at Topaz” is anchored by 99 Cent Only Stores, Southern California’s leading discount variety store. Other tenants include Taco Bell, PFF Bank & Trust, Little Caesars, Advance America, and Verizon Wireless. This Offering provides an investor the opportunity to purchase a well located retail center in a dynamic trade area with strong national and regional tenants. Price #1: $15,340,000 – Entire Property Price #2: $11,800,000 – Excluding Taco Bell and PFF Bank Pads Initial Cap Rate: 5.8% at $15,340,000, 6.0% at $11,800,000 Building SF: Approx. 36,163 Year Built: 2007 Financing: No existing debt to assume. Cash or cash to a new loan.

Project Highlights

Outstanding Visibility and Position in the Marketplace

• The Shops at Topaz is located less than a mile east of the Interstate 15 Freeway on Main Street, Hesperia’s primary retail corridor. 90% of the City’s population is located east of the site causing most residents of the City to pass this site as they are heading to and from the 15 Freeway.

• During the next 2 years, over 1,000,000 SF of big box retailers (Wal-Mart, Target, Home

Depot) are scheduled to open near interstate 15 freeway. As a result, the Shops at Topaz will be in the path of all the residents traveling to these destination retailers.

• The center is located at a signalized intersection with all stores having unobstructed views to

Main Street. Ingress and egress is provided via driveways on both Main Street and Topaz.

• The center has prominent monument signage on Main Street.

• The site has traffic counts of over 37,000 cars per day. New Construction with Attractive Architecture and Design

• Constructed in 2007 • The Buyer of this Property can take great pride in the fact that they will own the most

attractive retail center in the trade area. • Shops at Topaz is designed with a southwestern architectural motif including metal accents,

curved tower elements, and an attractive color scheme.


• The project has a drought tolerant landscape design which is both environmentally sensitive

as well providing a reduction in operating costs. Excellent Tenant Mix and Lease Structure

• Anchored by 99 Cent Only Stores, the Shops at Topaz will benefit from the significant amount of traffic generated by this high volume quality retailer. 99 Cent Only Stores has over 250 stores with over $1.1B in annual sales and a market capitalization of over $800M. The store is expected to generate 800 trips per day through the center.

• Pads users include Taco Bell, the nation’s leading provider of Mexican fast food and PFF

Bank & Trust, the Inland Empire’s leading community bank with over 30 locations.

• Over 70% of the square footage is occupied by tenant’s with national or regional name recognition.

• Tenants at the property are primarily a mix of restaurants and services all of which are

designed to serve the local community and should compliment the big box retailers that are planned to the west of the center. These businesses include Advance America – Cash Advance, Hispanos Unidos Legal & Tax Services, Mirus Secondary School, Little Caesars Restaurant, Adriana’s Insurance, Sky Nails and Spa, Miyako Sushi, Hair Studio and a Snaps Fitness Center.

• Most leases have annual increases providing an acceleration in the cash flow during the

holding period. Based upon a 10 year hold, the cap rate increases to approximately 7.5%. A Rapidly Growing Trade Area

• Hesperia’s population is currently approximately 91,627 people which is an increase of approximately 30,000 residents in just the past 7 years. Population growth to 180,000 residents is anticipated by 2030. Current average household income in Hesperia is $60,124.

• Hesperia has just completed the construction of a new Civic Center complex including a new

City Hall and 20,000 SF community library.

• The High Desert which includes Victorville, Hesperia, Apple Valley and Adelanto has the capacity for over 200,000,000 Sf of industrial space which is being led by the redevelopment of the former George Air Force Base into the Southern California Logistics Airport (90,000 acres). Numerous major industrial developers have recently been acquiring land in this trade area as they realize that the High Desert is where the next wave of job growth will occur in Southern California.



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Property Photo


Pad Tenants


Property Photos

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Aerial


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Regional Map

Driving Directions From Orange County: Take the 55 Freeway North. Merge onto the 91 Freeway East. Take the 15 freeway North. Take the exit toward Hesperia. Turn right onto Main Street. From Los Angeles: Take I-10 E. Merge onto the I-15 North. Take the exit toward Hesperia. Turn right onto Main Street.


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Location Map

Driving Directions From Orange County: Take the 55 Freeway North. Merge onto the 91 Freeway East. Take the 15 freeway North. Take the exit toward Hesperia. Turn right onto Main Street. From Los Angeles: Take I-10 E. Merge onto the I-15 North. Take the exit toward Hesperia. Turn right onto Main Street.

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Site Plan


INCLUDING Taco Bell and PFF Bank PadsYear 1 Year 6

Sale Price: 15,340,000$ 15,340,000$ Cap Rate: 5.8% 6.6%Net Operating Income Including Pads: 896,425$ 1,015,230$

Gross Scheduled Income:Base Rent from Shops: 492,861$ 574,103$ Base Rent from 99 Cent Only & Pads: 421,838$ 464,346$ Recapture of Triple Net Charges: 262,246$ 262,246$

Total Gross Operating Income 1,176,945$ 1,300,695$

Less Vacancy (3%, excluding pads & 99 Cent Only): (18,274)$ (24,241)$ Less Expenses: (262,246)$ (262,246)$

Net Operating Income Including Pads: 896,425$ 1,014,209$

EXCLUDING - Taco Bell and PFF Bank PadsYear 1 Year 6

Sale Price: 11,800,000$ 11,800,000$ Cap Rate: 6.0% 6.9%Net Operating Income Excluding Pads: 709,088$ 808,905$

Gross Scheduled Income:Base Rent: 720,099$ 824,065$ Recapture of Triple Net Charges: 215,446$ 215,446$

Total Gross Operating Income 935,545$ 1,039,511$

Less Vacancy (3% excludes 99 Cent Only): (11,011)$ (15,160)$ Less Expenses: (215,446)$ (215,446)$

Net Operating Income Excluding Pads: 709,088$ 808,905$

Financial Summary - Shops at Topaz, Hesperia, CA

Note: Triple Net Charges are assumed at $.60/SF/month

The information shown on this page is believed to be accurate, howevera buyer is responsible for verifying the information.


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Rent Roll - Shops at Topaz, Hesperia CA

Unit # Trade Name/Legal Entity Use Sq. Ft.Rent/

Sq. Ft. Monthly Rent TermRent

Commencement Increases Options

101Advance America/Cash Advance Centers of California, LLC

Check cashing and advance payroll 1,225 $2.75 3,369$ 5 years 4/13/2007 3.5% annually 2-5 yr

102

Hispanos Unidos Legal & Tax Services - Jose Stephon Castaneda and Stella Castaneda;

Legal and tax service office 1,163 $2.50 2,907$ 5 years 7/15/2007 3% annually 1-5 yr

103Mirus Secondary School/Altus Institute dba;

Office and secondary school services and counseling 1,700 $2.50 4,675$ 5 years 8/5/2007 3.5% annually 1-5 yr

104Little Caesar's/Desert Empire Enterprises

Pizza take-out and delivery 1,632 $2.75 4,488$ 5 years

07/23/2007 or 1st day of operation 3% annually 1-5 yr

105Adriana's Insurance/Francisco Davila;

Insurance office and income tax preparation 1,432 $2.25 3,222$ 5 years 4/25/2007 3% annually 1-5 yr

10699 Cent Only Stores, a California Corporation

General Merchandise Retail Store 13,772 $1.38 18,937$ 10 years 120 days after delivery 10% every 5 years 3-5 yr

107Verizon Wireless/Mobil Choice Cellular Cellular phone store 1,827 $2.09 3,822$ 5 years 7/1/2007 3% annually 1-5 yr

108 Sky Nails/Kevin Thanh Truong; Nail salon and spa 1,452 $2.25 3,267$ 5 years 5/7/2007 3% annually 1-5 yr

109 Miyako Sushi/In Suk Kim Japanese Restaurant 1,632 $2.50 4,080$ 10 years 5/16/2007 3% annually 2-5 yr

110 NYC Salon/Yolanda Cruz Full Service Hair Salon 1,700 $2.75 4,675$ 5 years10/16/2007 or 1st day

of operation 3% annually 1-5 yr

111Snap Fitness/California Fitness Ventures LLC Fitness Center 2,388 $2.75 6,567$ 5 years Pending 3% annually 2-5 yr

29,923 60,008$ ($720,096 Annual Rent Shops)

Pad 1 Cotti Foods Corporation Taco Bell 2,640 $2.05 5,417$ 20 years 8/14/2007 10% every 5 years 4-5 yr

Pad 2 PFF Bank Bank Office 3,600 $3.00 10,800$ 20 years 5/4/2007 5% every 2 years 4-5 yr6,240 16,217$ ($194,604 Annual Rent Pads)

36,163 76,225$ ($914,700 Total Annual Rent)

Pads Only

Shops Only

Shops & Pads

www.99only.com 99¢ Only Stores is a unique deep-discount retailer of primarily name-brand consumable general merchandise, where nothing is over 99¢. They are the oldest single-price retail chain in the country. 99¢ Only Stores are attractively merchandised, clean, full service "destination" locations that offer customers significant value on their everyday household needs in an exciting shopping environment. Merchandise encompasses a wide array of name-brand closeout and regularly available consumable products including food and beverages such as: produce, deli, and other basic grocery items, health and beauty care, and household supplies. From the first store opening in 1982, the chain of 99¢ Only Stores has expanded to over 251 stores as of March 31 2007; 177 in California, 41 in Texas, 22 in Arizona, and 11 in Nevada. For fiscal 2006, total sales were over $1 billion.

www.tacobell.com

This restaurant is Franchised by Cotti Foods Corporation-, who has over 50 units and is ranked in the top 10 of all franchisees in the system. Taco Bell Corp., (Taco Bell) based in Irvine, California, is a subsidiary of Yum! Brands, Inc. (NYSE: YUM), and the nation’s leading Mexican-style quick service restaurant chain. Taco Bell® serves tacos, burritos, signature Quesadillas, Grilled Stuft Burritos, nachos, and other specialty items such as the Crunchwrap Supreme™, in addition to a wide variety of Big Bell Value Menu® items. Taco Bell® serves more than 2 billion consumers each year in more than 5,800 restaurants in the U.S. In 2005, Taco Bell® generated sales of $1.8 billion in company restaurants and $4.4 billion in franchise restaurants. More than 80 percent of our restaurants are owned and operated by independent franchisees. There are currently more than 278 restaurants operating in Canada, Guam, Aruba, Dominican Republic, Chile, Costa Rica, Guatemala, Puerto Rico, Ecuador, Asia, Europe, and the Philippines. www.pffbank.com PFF Bancorp, Inc. is a diversified financial services company. It conducts its business principally through its wholly owned subsidiary, PFF Bank & Trust (the Bank). The Company's business also includes Glencrest Investment Advisors, Inc. (Glencrest), a registered investment advisor (RIA). Glencrest provides wealth management and advisory services to high net worth individuals and businesses. In addition, the Company's business includes Diversified Builder Services, Inc. (DBS), a provider of financing and consulting services to home builders and land developers. PFF Bank is the largest community bank headquartered in the Inland Empire, a market with a population that exceeds more than 20 states in the nation. Operating from over 30 branch locations, PFF Bank & Trust has over $4.5B in assets and deposits in excess of $3B.

www.advanceamerica.net

Advance America is the nation's leading payday advance company, with approximately 3,000 centers in 37 states, employing nearly 7,000 people. The company was founded in 1997 and since then has helped millions of hardworking Americans overcome unexpected financial difficulties. Since 1997, the company has grown in size and scope, developing a strong national presence based on consumer demand, responsible management and a corporate culture that promotes accountable lending and courteous customer service. Advance America is listed on the New York Stock Exchange NYSE: “AEA”.

Tenant Descriptions


www.littlecaesars.com Little Caesars opened its first store in 1959 and has been franchising since 1962. Their depth of experience is a major factor for their success. Recognized as the worlds largest carry out pizza chain, Little Caesars year over year sales increases led to significant franchisee growth, which generated overall growth and helped develop new markets for the brand. This growth, coupled with fresh, quality products, outstanding value for customers and strong national brand recognition, clearly positions Little Caesars for continued and accelerated growth in 2007 and beyond.

www.adrianasinsurance.com

ADRIANA'S INSURANCE is a highly recognized and respected insurance agency in the industry. Providing outstanding services and a variety of insurance products to customers.

Over 14 years of flawless business experience in insuring auto, home and commercial property, a total of 22 locations to serve you and growing.

www.snapfitness.com

Snap Fitness provides a convenient fitness alternative to your area with 24 hour a day, 7 days a week access via a card-key locking system. Our locations provide a secure and convenient work out environment that will allow you to fit your workout routine into your busy schedule.

Ranked 11th on Entrepreneur Magazine's list of "Top New Franchises" and among Success Magazine’s "10 Franchises We Love," Snap Fitness is experiencing phenomenal growth with 1,000 locations sold nationwide and some 30-40 new locations added monthly. Founded in 2003 by CEO Peter Taunton, the Chanhassen, Minn.-based franchisor offers compact, state-of-the-art, 24-hour fitness clubs that emphasize fast, convenient and affordable workouts in neighborhoods across America.

www.verizon.com This is a franchise location, with locations in Barstow and in Victorville. Verizon Wireless operates the nation’s most reliable wireless network. It is the only major carrier with a 30-day network test-drive pledge that pays for calls if a customer isn’t satisfied and switches to another carrier. Headquartered in Basking Ridge, N.J., Verizon Wireless is the largest U.S. wireless company and largest wireless data provider, based on revenues. The company is a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE and LSE: VOD).



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Trade Area Growth

City of Hesperia Hesperia is conveniently located 35 miles north of Ontario, 90 miles northeast of Los Angeles and 195 miles south of Las Vegas, Nevada at the intersection of Highway 395 and Interstate 15. The City of Hesperia is located in an area best known as the High Desert, also called the Inland Empire North region. Other cities within this region include Victorville, Apple Valley and Adelanto. These cities are located in the northern part of the Inland Empire, one of the country’s most dynamic and rapidly growing trade areas. Of all the Inland Empire North cities, Hesperia is the furthest south, which puts it closest to the booming job markets within Ontario, Rancho Cucamonga, Corona (cities located “down the hill”) and other cities throughout the Inland Empire. Approximately 60,000 cars per day commute south on the 15 Freeway to jobs outside the Inland Empire North trade area. People locate within this region due to the high level of affordable housing and the unique quality of life that includes more open space, cleaner air, and a lifestyle that is more similar to the mid-west than Southern California. Hesperia’s population has increased 9% in just one year, and 34 % over the last seven years to over 90,000 people today. With significant amounts of vacant residential land still available, the population should continue to expand at a rapid pace with an anticipated growth of 19% over the next few years. Housing prices in the Inland Empire North result in tremendous values. A new 2,400 SF house can easily be purchased for $309,000 in Hesperia vs. $600,000 in Rancho Cucamonga or Corona. So long as this price disparity continues to grow as a result of shrinking land supplies “down the hill”, residential construction and population will continue to increase in the Inland Empire North.

Over the last few years the High Desert has experienced a tremendous growth rate. It is very likely that the High Desert will continue to expand at the same or greater rate of growth than it has for the last few years. The growth rate is due to several factors including; natural increase of population combined with domestic and international immigration, economic growth in the region and low cost of housing. The city recently completed its 58,000 SF city hall and 20,000 SF library construction of a four acre passive park located next to city hall will begin this summer. An additional 276,000 SF of retail, office, and a theater will begin construction early 2008 and will round out the mixed use project. Sources of employment also continue to grow. Major employers within the City include manufacturers such as C & M Woods & Hesperia Truss (construction materials), Dial Precision (turbo charger parts), Mer-Mar (circuit boards) Daytec (motorcycle frames), Vydac (bio-medicals), as well as non-manufacturers such as Arizona Pipeline (pipe fabrication), Double Eagle Transportation (transportation/repairs), Graco (baby products). Adorned by the San Bernardino Mountain Range, Hesperia was named the “Star of the West” more than 100 years ago. Hesperia offers the best of Southern California lifestyle as a price that families can afford. Clean air, over 350 days of sunshine and deep blue skies entices business and residents to Hesperia. With its strategic location, Hesperia is posturing itself to be a major distribution and logistics hub in the Southern California Region. Hesperia……..The City of Progress! The source for much of the information provided above is the City of Hesperia’s web site, www.ci.hesperia.ca.us. There is a wealth of information available on this web site. Potential investors are encouraged to view this web site for additional information.



Demographics Report 14075 Main Street Hesperia, CA 92345

1.00 Mile Ring

3.00 Mile Ring

5.00 Mile Ring

POPULATION 1990 Population 3,354 21,490 58,440

2000 Population 4,213 25,808 81,463 % Population Change 1990-2000 25.61 % 20.09 % 39.40 %

2006 Total Population 5,320 30,138 100,832 2011 Total Population 6,119 33,669 112,038 % Population Change 2000-2006 26.28 % 16.78 % 23.78 % % Population Change 2006-2011 15.02 % 11.72 % 11.11 % 2006 Total Households 1,712 9,298 31,523 2011 Total Households 1,957 10,169 34,543 % Households Change 2000-2006 25.33 % 16.05 % 22.60 % % Households Change 2006-2011 14.31 % 9.37 % 9.58 % 2006 White Population 3,697 20,736 66,383 2006 Black Population 214 1,156 6,660 2006 American Indian/Alaska Native 59 400 1,266 2006 Asian/Hawaiian/Pacific Islander 69 374 2,379 2006 Other Population (Incl 2+ Races) 1,281 7,473 24,143 2006 Hispanic Population 2,014 11,782 37,771 2006 Non-Hispanic Population 3,306 18,357 63,061 2006 Per Capita Income $18,708 $17,839 $17,879 2006 Median Household Income $51,930 $47,703 $47,700 2006 Average Household Income $58,135 $57,823 $57,188 2006 Household Income < $10,000 44 377 1,932 2006 Household Income $10,000-$14,999 99 678 2,191 2006 Household Income $15,000-$19,999 155 628 1,838 2006 Household Income $20,000-$24,999 128 663 2,043 2006 Household Income $25,000-$29,999 93 445 1,641 2006 Household Income $30,000-$34,999 94 518 1,793 2006 Household Income $35,000-$39,999 52 480 1,577 2006 Household Income $40,000-$44,999 51 521 1,867 2006 Household Income $45,000-$49,999 103 625 1,627 2006 Household Income $50,000-$59,999 189 966 3,084 2006 Household Income $60,000-$74,999 345 1,564 5,360 2006 Household Income $75,000-$99,999 200 1,118 3,966 2006 Household Income $100,000-$124,999 54 331 1,231 2006 Household Income $125,000-$149,999 62 196 721


2006 Household Income $150,000-$199,999 13 60 360 2006 Household Income $200,000-$249,999 4 20 51 2006 Household Income $250,000-$499,999 24 103 234 2006 Household Income $500,000+ 1 3 6 2006 Average Household Size 3.12 3.22 3.19 2006 Total Owner Occupied Housing Units 1,161 7,061 23,595 2006 Total Renter Occupied Housing Units 544 2,270 7,975 2006 Total Daytime Population 2,327 26,089 86,333 2006 Total Daytime Work Population 607 8,250 27,402 2006 Total Establishments 80 1,136 3,738

HOUSEHOLDS 1990 Households 1,071 6,844 19,238

2000 Households 1,366 8,012 25,713 % Households Change 1990-2000 27.54 % 17.07 % 33.66 %


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R

Confidentiality and Disclaimer Statement 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. Sperry Van Ness 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 contamination substances, PCB’s mold 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, Sperry Van Ness has not verified, and will not verify, any of the information

contained herein, nor has Sperry Van Ness 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.

Co-Operating Broker Fee

Sperry Van Ness has a policy of pro-active broker co-operation with the investment brokerage

community. A co-operating broker fee of one and one half percent (1.5%) of the sales price

shall be paid at closing to a co-operating broker that represents the buyer that acquires this

property. It is Sperry Van Ness’s policy to not co-operate with brokers that represent

themselves as Principals.

hesperia, ca 92345 14073 main street shops at...

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