home depot shadow anchored retail investment …...retail capital markets lic. 02008809 mobile +1...
TRANSCRIPT
Home Depot Shadow AnchoredRetail Investment Opportunity
OFFERING MEMORANDUM
Stabilized Income & Expense Summary Rent RollOccupancy AnalysisTenant Overviews
Financial Overview19
Offering SummaryInvestment SummaryInvestment Highlights
Executive Summary3Local Map Site PlanPhysical DescriptionProperty Photos
Property Description7
Glendora OverviewLos Angeles County Overview
Area Overview13
Table of Contents
Exclusively Listed By
Senior Vice President
Retail Capital Markets
Lic. 01302079
Mobile +1 949 275 8807
Direct +1 949 724 5680
Charley Simpson
Associate Vice President
Retail Capital Markets
Lic. 01987844
Mobile +1 760 685 6873
Direct +1 949 724 5640
Caitlin Zirpolo
Associate Vice President
Retail Capital Markets
Lic. 02008809
Mobile +1 951 264 5994
Direct +1 949 724 5610
Jordan Gomez
Associate Vice President
Retail Capital Markets
Lic. 10401244229 NY
Mobile +1 917 515 9975
Direct +1 949 724 5650
david.maloy@colliers.
David Maloy
Executive Vice President
Retail Capital Markets
Lic. 01890271
Mobile +1 858 752 3078
Direct +1 949 724 5690
El Warner
1331 S Lone Hi l l Avenue | Glendora, CA 1
Glendora, CA 917401331 S Lone Hill Avenue
GLENDORAMARKETPLACE
2 Col l iers International 1331 S Lone Hi l l Avenue | Glendora, CA 3
EXECUTIVEsummary
Offering Summary Investment Summary
Asking Price $15,250,000
Total GLA 22,046 SF
Occupancy 100%
In-Place NOI $824,440
Cap Rate 5.41%
Number of Tenants 9
Year Built 2001
Total Land Area 2.416 Acres
Financing No Existing Debt – Loan Quotes Available
Colliers Retail Capital Markets Team is pleased to present
the fee simple sale of a multi-tenant pad within Glendora
Marketplace, the dominant regional shopping center within
the Glendora community of east Los Angeles County.
Glendora Marketplace is a 500,000 SF retail development
located at the intersection of the 210 and 57 Freeways
(372,000 VPD). Strategically situated along Glendora’s major
retail corridor, Glendora Marketplace features a premier
lineup of nationally recognized brands which include Home
Depot, Sam’s Club, Kohl’s, AMC Theater, Aldi, Best Buy,
Barnes & Noble, Bed Bath & Beyond, 24 Hour Fitness and
many others. Shadow anchored by a high-performing Home
Depot and located at the entrance to this dominant regional
center, this investment offering is currently 100% occupied
by 9 quality tenants including Blaze Pizza, Fatburger, Verizon,
Gamestop, America’s Best and Ortho Mattress.
Glendora Marketplace is an exceptional opportunity to
acquire a stable cash flow with attractive growth in the
revenue from fixed annual increases and is being offered
free and clear of any debt. Combine this with historically low
interest rates which will generate strong leveraged returns for
many years to come.
Investment Highlights
1331 S Lone Hi l l Avenue | Glendora, CA 54 Col l iers International
• Strategically situated on the North West hard signalized corner of S Lone Hill Avenue and W Gladstone Street, which features major retailer brands such as Walmart Supercenter, Costco, Home Depot, Sam’s Club, Kohl’s, AMC Theater, Aldi, Best Buy, Barnes & Noble, Bed Bath & Beyond, 24 Hour Fitness and many others
• Prominently located at the heavily trafficked interchange of the 210 and 57 Freeways which see a combined 372,000 VPD
Irreplaceable Hard-Corner Location
• With long term leases and increasing cash flow, the NOI is scheduled to grow $327,462 (39%) over the anticipated holding period, providing a good hedge against inflation
Stability of Income, 100% Leased
• Property features over 80% of national food and beverage, service and “daily needs” tenants which cater to the surrounding community and prove highly resistant to internet competition
Ecommerce Proof Tenancy
• Significant daily customer traffic from a very strong performing 115,000-square-foot freestanding Home Depot
• The pad sits at the entrance to the regions dominant commercial retail corridor and is surrounded by nearly 1,000,000 square feet of globally and nationally recognized retailers
Synergistic Surrounding Tenant Mix
• The 1-mile radius features 13,774 people with an Average Household Income of $106,780 per year
• The 3-mile radius features 112,538 people with an Average Household Income of $111,057 per year
• The 5-mile radius features 291,257 people with an Average Household Income of $103,161 per year
Affluent Trade Area
• With zero deferred maintenance, recent improvements on the roof, parking lot, exterior painting, landscape and tenant build-outs prevent a new investor from spending excess capital over the next 10-15 years as compared to older centers on the market
Institutional Quality
• Stabilized and 100% leased to NNN tenants, this investment features newly executed long-term leases plus options and high-quality tenant build-outs which will eliminate any near term leasing responsibility and out of pocket capital costs
Low Management Hassle
6 Col l iers International 1331 S Lone Hi l l Avenue | Glendora, CA 7
PROPERTYdescription
GLADSTONE STREET
LONE
HIL
L AV
ENUE
8 Col l iers International
Site PlanTenant Roster
Unit Tenant SF % of GLA
100 Blaze Pizza 2,100 9.5%
110 Fatburger 1,500 6.8%
120 Saj Bakery 1,440 6.5%
130 America's Best 3,390 15.4%
150 Han Brothers 2,250 10.2%
160 Gamestop 2,000 9.1%
170 Verizon 4,246 19.3%
185 Dentist 1,620 7.3%
200 Ortho Mattress 3,500 15.9%
TOTALS 22,046 100.0%
2,100 SF
1,500 SF
1,440 SF
3,390 SF
2,250 SF
2,000 SF
4,246 SF
1,620 SFLONE HILL DENTAL
3,500 SF
1331 S Lone Hi l l Avenue | Glendora, CA 9
1
2
3
4 5
76
1
2
3
4
5
6
7
210 FREEWAY 245,000 VPD
57 FREEWAY 127,000 VPD
10 Col l iers International
Physical Description
AddressGlendora Marketplace1331 S Lone Hill Avenue, Glendora, CA 91740
Cross StreetS Lone Hill Ave (35,110 VPD)W Gladstone St (11,952 VPD
Square Footage (GLA)
±22,046
Land Area 105,243 SF (2.416 Acres)
APN 8642-020-043
Year Built /Renovated
2001/2018
Type ofOwnership Fee Simple
Parcel One Parcel
Zoning SP-GC (Glendora Commercial Specific Plan)
Parking Spaces 102
Parking Ratio 4.63:1,000
The Property is strategically located at the heavily trafficked interchange of the 210 and 57 Freeways with convenient access from both the Lone Hill Avenue & Auto Centre Drive on/off ramps.
The pad is located at the hard-signalized corner of the regions dominant commercial retail corridor and is surrounded by nearly 1,000,000 square feet of globally and nationally recognized retailers.
Glendora and the surrounding Eastern San Gabriel Valley communities provide a strong residential base with approximately 291,257 people living within a five-mile radius with an average household income of $103,161 and average home value of $567,057.
The premier shopping destination for a dozen major Universities & Colleges including Azusa Pacific University, Cal Poly Pomona, La Verne University and The Claremont Colleges with a total enrollment of over 130,000 students enrolled year round.
Glendora is an affluent, densely populated community with nearly 400 new units currently under construction.
The Subject is located within the established Eastern San Gabriel Valley residential & commercial community of Glendora, California.
Location Summary
1331 S Lone Hi l l Avenue | Glendora, CA 11
THE CLAREMONT COLLEGES 5 UNDERGRADUATE SCHOOLS
2 GRADUATE SCHOOLS7,750 STUDENTS ENROLLED
UNIVERSITY OF LA VERNE8,159 STUDENTS ENROLLED
CAL POLY POMONA UNIVERSITY25,894 STUDENTS ENROLLEDMT. SAN ANTONIO COLLEGE
61,962 STUDENTS ENROLLED
CITRUS COLLEGE20,002 STUDENTS ENROLLED
AZUSA PACIFIC UNIVERSITY10,095 STUDENTS ENROLLED
TOTAL POPULATION (2019 ESTIMATE)
HOUSEHOLD INCOME(ESTIMATE AVERAGE)
1
MILE
13,774
$106,780
3
MILES
112,538
$111,057
5
MILES
291,257
$103,161
12 Col l iers International 1331 S Lone Hi l l Avenue | Glendora, CA 13
AREAoverview
14 Col l iers International
Glendora Overview Situated in the eastern portion of Los Angeles County, Glendora is located at the base of the scenic San Gabriel Mountains, approximately 23 miles east of downtown Los Angeles. The city boasts convenient access to major commercial, cultural, educational and recreational areas within Southern California.
With more than 50,000 residents, Glendora is an appealing city to live, work and play, with excellent public private schools, family-friendly parks, extensive community services and one of the lowest crime rates in Los Angeles County. The area’s thriving business community features owner-operated retail stores in its downtown “Village” on one end of the spectrum, as well as corporate headquarters for major domestic and international firms, such as Rain Bird Sprinkler Manufacturing Company and the National Hot Rod Association.
Quality education is a focus in the community, which offers access to both public and private schools. According to state testing results, Glendora High School students scored far above state averages in reading, writing, and math. Furthermore, a recent graduate follow-up survey showed that approximately 96 percent of Glendora High School graduates go on to higher education.
Glendora is considered a haven from the fast-paced city lifestyle of the Los Angeles metropolitan area. With plenty of curbside appeal, the homes, which range from quaint turn-of-the-century cottages to prestigious executive hillside estates, make it one of the most attractive residential communities in Southern California.
Demographics
Population 1 Mile 3 Miles 5 Miles
2019 Estimate 13,774 112,538 291,257
2024 Projection 14,122 115,419 299,169
Growth 2019-2024 2.53% 2.56% 2.72%
Growth 2010-2019 2.99% 3.76% 4.33%
Households 1 Mile 3 Miles 5 Miles
2019 Estimate 4,831 39,015 91,779
2024 Projection 4,964 40,048 94,441
Growth 2019-2024 2.75% 2.65% 2.90%
Growth 2010-2019 3.56% 3.91% 4.66%
Income/Home Value 1 Mile 3 Miles 5 Miles
Average Household Income $106,780 $111,057 $103,161
Median Home Value $542,834 $599,986 $567,057
1331 S Lone Hi l l Avenue | Glendora, CA 15
16 Col l iers International
Los Angeles County OverviewLos Angeles County is the most populous county in the United States, with more than 10 million inhabitants as of 2018. As such, it is the largest non–state level government entity in the United States. Its population is larger than that of 41 individual U.S. states. It is the third-largest metropolitan economy in the world, with a Nominal GDP of over $700 billion—larger than the GDPs of Belgium, Norway, and Taiwan. It has 88 incorporated cities and many unincorporated areas and, at 4,083 square miles (10,570 km2), it is larger than the combined areas of Delaware and Rhode Island. The county is home to more than one-quarter of California residents and is one of the most ethnically diverse counties in the U.S. Its county seat, Los Angeles, is also California’s most populous city and the nation’s second largest city with about 4 million people.
Major Employers Demographics | Los Angeles County
Employer # of Employees
County of Los Angeles 107,400
Los Angeles Unified School District 104,300
UCLA 65,600
City of Los Angeles (inc. DWP) 61,900
GSA (non-DOD) 43,600
Kaiser Permanente 37,400
State of California (non-education) 29,800
USC 21,600
Northrop Grumman 16,600
Providence Health 15,900
Population
2019 Estimate 10,255,707
2024 Projection 10,565,342
Growth 2019-2024 3.02%
Growth 2010-2019 4.45%
Households
2019 Estimate 3,389,819
2024 Projection 3,494,694
Growth 2019-2024 3.09%
Growth 2010-2019 4.58%
Household Income
Average Household Income $99,923
Median Housing Value $615,514
1331 S Lone Hi l l Avenue | Glendora, CA 17
MOST POPULOUS COUNTY IN THE NATION
LOS ANGELES COUNTY
1#
RESIDENTS
OF CALIFORNIA
TO MORE THANHOME
MILLION
INHABITANTS AS OF 2018
18 Col l iers International 1331 S Lone Hi l l Avenue | Glendora, CA 19
FINANCIALoverview
In-Place Income & Expense Summary Rent Roll
20 Col l iers International
In-Place
Income Total $/SF
Rental Income $879,764 $39.91
Other Income (Signage) $6,000 $0.27
Expense Reimbursements $222,786 $10.11
Vacancy Factor (5%) ($55,127) ($2.50)
Effective Gross Income $1,053,422 $47.78
Expenses Total $/SF
Real Estate Taxes $128,200 $5.82
Property Insurance $12,607 $0.57
CAM/R&M $61,875 $2.81
Management $26,300 $1.19
EGI (%) 2.50%
Operating Expenses $228,981 $10.39
Net Operating Income $824,440 $37.40
Operating Expense Ratio 22%
Proposal Valuation Summary
Offering List Price
Sale Price $15,250,000
Price PSF $692
Investment Returns List Price
In Place Cap Rate 5.41%
Premise List Price
In Place Income $824,440
Building SF 22,046
Unit # Tenant Lease Start
Lease End
Square Feet
% of GLA
Contract Rental Rate Rent Per SFRent Increases Options
Year Month Year Month
100 Blaze Pizza Mar-18 Feb-28 2,100 9.5% $100,800 $8,400 $48.00 $4.00 12% increases every 5 years 3x5 years
110 Fatburger Sep-18 Sep-28 1,500 6.8% $73,520 $6,127 $49.01 $4.08 3% annual increases 2x5 years
120 Saj Bakery Dec-18 Dec-28 1,440 6.5% $71,957 $5,996 $49.97 $4.16 4% annual increases 2x5 years
130 America's Best Jun-17 Jun-27 3,390 15.4% $132,210 $11,018 $39.00 $3.25 10% increases every 5 years 2x5 years
150 Han Brothers Sep-10 Jan-22 2,250 10.2% $71,414 $5,951 $31.74 $2.64 3% annual increases 1x5 years
160 Gamestop Sep-04 Jan-22 2,000 9.1% $79,560 $6,630 $39.78 $3.32 2% annual increases 1x3 years
170 Verizon Oct-00 Mar-22 4,246 19.3% $171,491 $14,291 $40.39 $3.37 3% annual increases 2x5 years
185 Dentist Jan-06 Sep-21 1,620 7.3% $58,339 $4,862 $36.01 $3.00 3% annual increases 3x5 years
200 Ortho Mattress Sep-00 Dec-21 3,500 15.9% $120,473 $10,039 $34.42 $2.87 4% increases every 30 months 2x5 years
Totals 22,046 100.0% $879,764 $73,314 $39.91 $3.33
1331 S Lone Hi l l Avenue | Glendora, CA 21
* Rent rol l includes rent increases thru end of 2020
22 Col l iers International
Occupancy Analysis
Tenant Name In Place Rent % of Income Expiration Date
Retail
Gamestop $79,560 9.04% Jan-22
Verizon $171,491 19.49% Mar-22
Ortho Mattress $120,473 13.69% Dec-21
Subtotal/Average $371,524 42.23%
Service
Han Brothers $71,414 8.12% Jan-22
America's Best $132,210 15.03% Jun-27
Dentist $58,339 6.63% Sep-21
Subtotal/Average $261,963 29.78%
Restaurants
Blaze Pizza $100,800 11.46% Feb-28
Fatburger $73,520 8.36% Sep-28
Saj Bakery $71,957 8.18% Dec-28
Subtotal/Average $246,277 27.99%
Total $879,764 100% 100%
SERVICES30%
RETAIL42%
RESTAURANTS28%
Rent Breakdown
Rollover AnalysisTenant Profile Analysis
1331 S Lone Hi l l Avenue | Glendora, CA 23
100%
90%
80%
70%
60%
50%
40%30%
20%
10%
0%321 4 5 6 7 8 9 10 11
YEAR
ANNUAL % OF TOTAL AGGREGATE % OF TOTAL
24 Col l iers International 1331 S Lone Hi l l Avenue | Glendora, CA 25
Tenant Overviews
Blaze Pizza LLC is a Pasadena, California-based chain within the fast-casual dining restaurants category. Founded in 2011 by Elise and Rick Wetzel of Wetzel’s Pretzels, Blaze Pizza was modeled after the Chipotle concept as a made-to-order approach to serving customers. Blaze Pizza took the top spot as America’s overall favorite fast food pizza in a recent 2019 survey.
Fatburger Inc. is an American fast casual restaurant chain. Its tagline is The Last Great Hamburger Stand. While it is a fast food restaurant, the food is cooked and made to order. Some Fatburger restaurants have a liquor license, as well as Fat Bars.
America’s Best Contacts & Eyeglasses, Inc. is a discount provider of eye examinations, eyeglasses and contact lenses, with over 700 retail locations in the United States as of 2019. Headquartered in metro Atlanta, the company operates several of the highest-volume eyeglass manufacturing labs in the country.
Blaze Pizza GameStop Corp. is the largest U.S. retailer of new and used games, hardware, entertainment software, and accessories. The company boasts roughly 3,800 GameStop, EB Games, and Micromania branded stores in the U.S. and about 2,000 stores in Europe, Australia, and Canada.
GameStop
FatburgerVerizon Communications is the #1 wireless phone service in the US (ahead of rival AT&T), serving more than 118 million connections. Verizon’s wireline unit provides local telephone, long-distance, internet access, corporate networking and digital TV services to consumers, carriers, business, and government customers.
Verizon
America’s Best Contacts & Eyeglasses Ortho Mattress is an American mattress and bedding company with retail and manufacturing headquarters in La Mirada, California. It was founded in 1957 in Gardena, California. Presently, Ortho Mattress has more than 70 stores throughout Los Angeles, Orange, San Diego, Ventura and Santa Barbara counties and employs approximately 240 people.
Ortho Mattress
2011Year Founded
1952Year Founded
1997Year Founded
300No. of Locations
157No. of Locations
+700No. of Locations
$12.3 MAnnual Sales
1996Year Founded
±5,700No. of Locations
$8.2 BAnnual Sales
$29.6 MAnnual Sales
1983Year Founded
±2,330No. of Locations
$130 BAnnual Sales
$167.3 MAnnual Sales
1957Year Founded
±70No. of Locations
$7 MAnnual Sales
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This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International 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. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2019. All rights reserved.
Senior Vice President Retail Capital MarketsLic. 01302079Mobile +1 949 275 8807Direct +1 949 724 [email protected]
Charley Simpson
Associate Vice President Retail Capital MarketsLic. 01987844Mobile +1 760 685 6873Direct +1 949 724 [email protected]
Caitlin Zirpolo
Associate Vice President Retail Capital MarketsLic. 02008809Mobile +1 951 264 5994Direct +1 949 724 [email protected]
Jordan Gomez
Associate Vice President Retail Capital MarketsLic. 10401244229 NYMobile +1 917 515 9975Direct +1 949 724 [email protected]
David Maloy
Executive Vice President Retail Capital MarketsLic. 01890271Mobile +1 858 752 3078Direct +1 949 724 5690 [email protected]
El Warner