huntington park plaza de la fiesta i - jesse lee e florence ave huntington park ca-omp.pdfintended...

OFFERING MEMORANDUM

huntington park, capLAZA DE LA FIESTA I

PLAZA DE LA FIESTA I

2Activity ID: Z0100330

HUNTINGTON PARK, CA|

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property now, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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 the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

Joseph Lising First Vice President Investments Newport Beach Office (949) 419-3227 Direct(949) 419-3210 Fax [email protected] CA License: 01248258

Ron Duong Senior Vice President Investments Newport Beach Office (949) 419-3233 Direct(949) 419-3210 Fax [email protected] License: 01438643

Ben Carlile Associate Newport Beach Office (949) 419-3304 Direct(949) 419-3210 Fax [email protected] CA License: 01949032

Aria Pournazarian National Retail Group Downtown L.A. Office (213) 943-1874 Direct(213) 943-1800 Fax [email protected] License: 01918248

CONFIDENTIALITY AGREEMENTINVESTMENT ADVISORS

Rainier Nanquil Net Leased Properties Group Newport Beach Office (949) 419-3206 Direct(949) 419-3210 Fax [email protected] CA License: 01946959




• City-owned Parking Garage located immediately behind Plaza de la Fiesta offers 250 parking spots to alleviate the traffic into the area

• Extremely dense, infill location with over 1,115,942 population within a five-mile radius

• Phenomenal average daily population of over 445,000 within three miles

• Multiple points of ingress and egress located on Florence Avenue, Rita Avenue, and Seville Avenue

• Unique three-building layout promoting positive co-tenant synergy and future repositioning for a wide variety of retail uses

Executive Summary

•Located on the signalized intersection of Rita Avenue and Florence Avenue, with significant exposure and visibility from both pedestrian and vehicular traffic

•Florence Avenue (daily traffic counts exceed 32,000 cars per day) is one of Huntington Park’s main retail thoroughfares, with multiple LA Metro bus stops in the immediate vicinity of the property

•The subject property is located within the Downtown Huntington Park Area, which includes other major retail tenants such as: In-n-Out, Starbucks, Chase Bank, and Rite Aid

•Nearby Pacific Boulevard is one of Los Angeles County’s top retail corridors. It consistently reports high levels of foot traffic, while exceeding 17,000 vehicles per day

•Fiesta III & IV (NAP) - Additional investment opportunity also available for sale in close proximity to the subject property. Please contact Agents for more details.

Exceptional Opportunity Located in Downtown Huntington Park

•Excellent tenant operating history - almost 50% of the tenants have occupied the subject property for 10+ years proving their commitment to the location

• Offered free and clear of debt at a 5.51% cap rate with excellent financing options available. Contact Agents for more details

•100% occupied asset with major retail tenants including Yoshinoya (31+ years of occupancy), Baskin Robbins (13+ years of occupancy), and H. Kings Buffet (15+ years of occupancy)

Long-term Operating History with Excellent Financial Records for Each Property

Strong Real Estate Fundamentals



HUNTINGTON PARK, CA| pLAZA DE LA FIESTA I2661 -2667 E Florence Ave

& 7119 Seville Ave Huntington Park, CA 90255




Fiesta I Details

Loan Programs are Subject to Change - Please Contact Agent for More Information

Proposed 10-Year Term FinancingProgram 5 Year Fixed RateInterest Rate 4.70%Amortization 30 YearsLoan Amount $7,887,500Loan-to-Value (LTV) 50%Monthly Payment $40,907.56Annual Payment $490,890.69Net Cashflow $377,852.91Cash-on-Cash 4.79%

Offering PriceList Price $15,775,000

CAP Rate 5.51%

Price Per Square Foot GLA $412.05

Price Per Square Foot Land $148.30

Annualized Operating DataGross Potential Rent $921,924.96 Expense Reimbursements $532,657.10 Gross Potential Income $1,454,582.06 Vacancy Allowance (3%) ($43,637.46)Effective Gross Income $1,410,944.60 Total Expenses ($542,201.00)Net Operating Income $868,743.60

Property Details

Address2661-2667 E Florence Ave

& 7119 Seville AveHuntington Park, CA 90255

APN 6322-025-046, 6322-025-0476322-025-048, 6322-025-049

GLA 38,284 SF

Lot Size 106,375 SF (2.44 AC)

Year Built2661 E Florence Ave - 1993 2667 E Florence Ave - 1988

7119 Seville Ave - 1966

Zoning HPCG - General Commercial

Parking Stalls 158 Stalls

Parking Ratio 4.13 per 1,000 SF

Annualized ExpensesTax Rate (1.3817%) $217,960.34Tax Special Assess. $5,290.41Insurance $36,198.32 Maintenance Reserve $25,000.00 Landscaping $7,004.00 Water 2661 Florence Ave $18,086.80 Water 2667 Florence Ave $4,944.00 Water 7119 Seville Ave $3,090.00 Parking Lot Maintenance $14,584.80 Electric $16,191.60 Trash $14,470.68 Pest Control $3,852.20 Supplies $1,133.00 Building Maintenance $11,556.60 HVAC Maintenance $7,931.00 Janitorial $3,256.61 Sign Maintenance $515.00 Security $72,594.40 Plumbing $5,150.00 Roof Repairs $8,755.00 Maintenance Labor $18,540.00Management $46,096.25Total $542,201.00Total/SF $14.16

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Fiesta I Rent RollAs of January 1st, 2019

UNIT TENANT SF PRO RATA RENT RENT/SF COMMENCE EXPIRE TENANCY INCREASE TYPE OPTIONS

A-A Baskin Robbins 966 2.52% $1,911.92 $1.98 3/15/2005 12/31/2024 14 Years 2% Annual NNN One, Seven-Year

A-C Cure4Feet Podiatry Group Inc 1,183 3.09% $2,135.37 $1.81 5/1/2013 04/30/2020 5 Years 3% Annual NNN None

A-D H. Kings Buffet 10,987 28.70% $23,164.48 $2.11 3/1/2003 12/31/2026 16 Years 2% Annual NNN One, 10-Year

A-E Guadalupana - Nueva Vida 207 0.54% $934.65 $4.52 5/1/2008 12/31/2019 11 Years 3% Annual NNN None

A-F Alteraciones de Ropa Veloz 198 0.52% $618.00 $3.12 4/1/2016 03/31/2019 3 Years 3% Annual FSG None

A-G Income Tax/Travel Agency 265 0.69% $663.06 $2.50 1/1/2016 12/31/2018* 3 Years 3% Annual FSG None

A-H Madam's Beauty Salon 174 0.45% $476.22 $2.74 7/1/2008 08/31/2020 10 Years 2% Annual NNN One, Five-Year

A-C1 Cingular Staffing 1,432 3.74% $2,550.49 $1.78 7/1/2011 04/30/2020 7 Years 3% Annual NNN None

A-D2 Pizza Restaurant 1,425 3.72% $2,406.17 $1.69 7/12/2018 12/31/2026 Years 2% Annual NNN One, Ten-Year

B-A Clinica Dental De Santa Mina 1,064 2.78% $1,825.24 $1.72 7/1/1994 04/30/2019* 24 Years 3% Annual NNN None

B-B Gloria's Restaurant 1,073 2.80% $1,273.45 $1.19 9/1/2017 08/31/2019 1 Years 2% Annual NNN None

B-C CitiStaff Solutions Inc 1,005 2.63% $1,326.41 $1.32 4/1/2015 03/31/2019 4 Years None NNN None

B-D Cameron Pharmacy 2,500 6.53% $4,908.54 $1.96 6/1/2004 06/30/2019 14 Years 3% Annual NNN One, Seven-Year

B-E Maytag Lavanderia 3,040 7.94% $5,631.78 $1.85 9/26/2011 09/30/2021 7 Years 3% Annual NNN Two, Five-Year

B-F Daniel Market 3,060 7.99% $3,144.35 $1.03 10/1/2010 09/30/2020 8 Years 3% Annual NNN One, Five-Year

C-A Great Fusion Grill & BBQ 1,675 4.38% $3,963.66 $2.37 11/1/2014 10/31/2024 4 Years 2% Annual NNN One, Ten-Year

C-B Mexican Restaurant 1,200 3.13% $1,592.83 $1.33 3/1/2018 02/28/2023 1 Years 3% Annual NNN One, Five-Year

C-C Vitamins and Supplements 1,500 3.92% $2,040.93 $1.36 6/1/2017 11/30/2018* 1 Years 3% Annual NNN One, Three-Year

C-D Freeway Insurance 1,200 3.13% $3,084.24 $2.57 5/1/2011 05/31/2019 7 Years 3% Annual NNN None

C-E1 Hashtag Coffee & Tea 750 1.96% $1,694.34 $2.26 5/1/2016 04/30/2021 2 Years CPI Annual (3% Min) NNN One, Three-Year

C-E2 Fiesta Threading 750 1.96% $1,328.95 $1.77 6/15/2017 06/30/2020 1 Years 3% Annual NNN None

C-F1 Tropical Tours 630 1.65% $1,152.00 $1.83 1/1/2016 08/31/2019 3 Years N/A NNN None

C-F2 Yoshinoya 2,000 5.22% $9,000.00 $4.50 12/30/1987 07/31/2023 31 Years 2% Annual NNN One, Five-Year

Total SQFT: 29,948 SF 100% Monthly Rent$76,827.08

Avg Rent/SF $2.01

Total Vacant: 0 SF Total Occupied: 29,948 SF

0% 100%

Annual Rent $921,924.96

Avg Rent/SF $24.08

Number of Tenants: 23*Lease Extension Pending - Contact Agents for More Details

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HUNTINGTON PARK, CA| pLAZA DE LA FIESTA I2661 -2667 E Florence Ave

& 7119 Seville Ave Huntington Park, CA 90255




UNIT TENANT SF PRO RATA

A-A Baskin Robbins 966 2.52%

A-B Cure4Feet Podiatry Group Inc 1,183 3.09%

A-D H. Kings Buffet 10,987 28.70%

A-E Guadalupana - Nueva Vida 207 0.54%

A-F Alteraciones de Ropa Veloz 198 0.52%

A-G Income Tax/Travel Agency 265 0.69%

A-H Madam's Beauty Salon 174 0.45%

A-C1 Cingular Staffing 1,432 3.74%

A-D2 Pizza Restaurant 1,425 3.72%

B-A Clinica Dental De Santa Mina 1,064 2.78%

B-B Gloria's Restaurant 1,073 2.80%

B-C CitiStaff Solutions Inc 1,005 2.63%

B-D Cameron Pharmacy 2,500 6.53%

B-E Maytag Lavanderia 3,040 7.94%

B-F Daniel Market 3,060 7.99%

C-A Great Fusion Grill & BBQ 1,675 4.38%

C-B Mexican Restaurant 1,200 3.13%

C-C Vitamins and Supplements 1,500 3.92%

C-D Freeway Insurance 1,200 3.13%

C-E1 Hashtag Coffee & Tea 750 1.96%

C-E2 Fiesta Threading 750 1.96%

C-F1 Tropical Tours 630 1.65%

C-F2 Yoshinoya 2,000 5.22%

Number of Tenants: 23 Total SQFT: 29,948 SF 100% 100.00%

Site Map




pLAZA DE LA FIESTA I2661 -2667 E Florence Ave & 7119 Seville Ave Huntington Park, CA 90255




Named for prominent industrialist Henry E. Huntington, Huntington Park was incorporated in 1906 as a streetcar suburb for workers in the rapidly expanding industries housed to the southeast of downtown Los Angeles. One of about two dozen municipalities known as the “Gateway Cities” in southeast Los Angeles County, located approximately five miles from Downtown Los Angeles. To this day, about 30% of its residence work at factories in nearby Vernon and Commerce. The stretch of Pacific Boulevard in downtown Huntington Park was a major commercial district serving the city’s largely working-class residents, as well as those of neighboring cities such as Bell, Cudahy, South Gate, and Downey. Pacific Boulevard, which expanded as the city’s commercial hub in the 1930s, is now a thriving retail strip serving residents throughout southeastern Los Angeles County.

Market Overview

Notable Streamline Moderne architecture includes the Lane-Wells Company Building and the W. W. Henry Company Building. Art Deco architecture is found in Huntington Park’s commercial district, and include the former theaters along Pacific Blvd. The 1,468 seat Warner Theater on Pacific Boulevard opened in 1930, and was designed by B. Marcus Priteca. The California Theatre opened in 1925 and was operated by Fox Theatres as the Fox California Theatre. In the 1980s it was known as the California 3 Theatre. The theatre closed in 2006 and was later converted into a retail space. It was renamed California 2 Theatres and now there is a tuxedo shop along with other retail stores and restaurants.

Pacific Boulevard, the commercial business street of Huntington Park, has been the location for festivals, carnival fairs and parades. The “Carnaval Primavera” is held each year for three days across nine blocks of Pacific Boulevard in Huntington Park. The event features Central American and Mexican food, carnival rides, games, and live music.

Warner Theater

SUMMARY

Carnaval Primavera

Southern California real estate boom in the early 1990s ultimately resulted in the wholesale departure of virtually all of the white population of Huntington Park by the mid-1990s. The vacuum was filled almost entirely by two groups of Latinos: upwardly mobile families eager to leave the barrios of East Los Angeles, and recent Mexican immigrants. Today, Pacific Boulevard is once again a thriving commercial strip, serving as a major retail center for working-class residents of southeastern Los Angeles County—but unlike its previous heyday of the 1930s, the signs along the avenue’s storefronts are now primarily in Spanish.

Source: https://en.wikipedia.org/wiki/Huntington_Park,_California

The changes that shaped Los Angeles from the late 1970s onward—the decline of American manufacturing that began in the 1970s; the rapid growth of newer suburbs in Orange County, the eastern San Gabriel, western San Fernando and Conejo valleys; the collapse of the aerospace and defense industry at the end of the Cold War; and the implosion of the




One of Southern California’s largest Three-Day Spring Festivals, “Carnaval Primavera Downtown Festival” is presented in the month of April. The major Hispanic Market event attracts thousands of attendees to the downtown area. “Carnaval Primavera” offers a large Hispanic Market for Corporations to promote their services and products, with over 100 corporate exhibits, retail commercial booths, food, arts & crafts, a free health fair, children’s mask contest, a main stage for live entertainment and two areas of amusement rides for all ages. www.hpchamber.org/index

Market Overview

Staples Center, officially stylized as STAPLES Center, is a multi-purpose arena in Downtown Los Angeles. Adjacent to the L.A. Live development, it is located next to the Los Angeles Convention Center complex along Figueroa Street. The arena opened on October 17, 1999, and is one of the major sporting facilities in the Greater Los Angeles Area. Staples Center is only a part of a 4,000,000-square-foot development by Anschutz Entertainment Group (AEG) adjoining Staples Center and the Los Angeles Convention Center. The development, known as L.A. Live, broke ground on September 15, 2005. www.wikipedia.org/wiki/Staples_Center

The Watts Towers, Towers of Simon Rodia, or Nuestro Pueblo (“our town” in Spanish) are a collection of 17 interconnected sculptural towers, architectural structures, and individual sculptural features and mosaics within the site of the artist’s original residential property in Watts, Los Angeles. The entire site was designed and built solely by Sabato (“Simon”) Rodia (1879–1965), an Italian immigrant construction worker and tile mason, over a period of 33 years from 1921 to 1954. The tallest of the towers is 99.5 feet (30.3 m). www.wikipedia.org/wiki/Watts_Towers

Watts Towers

Staples Center

Carnaval Primavera

Dodger Stadium is a baseball park located in the Elysian Park neighborhood of Los Angeles, California, the home field to the Los Angeles Dodgers, the city’s Major League Baseball franchise. Opened 56 years ago on April 10, 1962, it was constructed in less than three years at a cost of US$23 million, financed by private sources. Dodger Stadium is currently the oldest ballpark in MLB west of the Mississippi River. www.wikipedia.org/wiki/Dodger_Stadium

Dodgers Stadium

The City of Huntington Park selected RRM Design Group to prepare the Specific Plan for their Downtown Central Business District. Building upon flourishing redevelopment activities and demographic shifts toward Hispanic culture, the Plan uses community participation and TOD principles to establish an attractive, mixed-use, pedestrian-friendly environment to reduce reliance on automobiles and to provide housing close to shopping and employment. Acknowledging and addressing an extensive transit system, the Plan also balances regional and local-serving uses, buffers surrounding residential uses transitioning from low to higher density, and encourages a new sense of community ownership. The Plan also includes a streetscape and plaza master plan, designed to support the community’s festivals and shopping atmosphere and an extensive design guideline and signage standards for the public and private realm.

RRM Design Group Concept

Revitalization of Pacific Boulevard

Huntington Park’s downtown area has experienced a revitalizing overhaul by becoming pedestrian-orientated. One key focus to enhance the downtown experience has been converting public spaces into strategically placed parklets to allow foot-traffic just another an opportunity enjoy the Pacific Boulevard. Converting public spaces into mini sidewalk parks first started in San Francisco and has quickly become popular along many high-profile, urban corridors in Southern California. The idea of creating parklets was to provide seating for the high foot-traffic, while also creating a micro-atmosphere of shade, greenery, and convenience. This has boosted both pedestrian and cycling traffic, and enhanced the energy found along the downtown corridor. The parklets have been well-received, and the City has plans to continue strategically building these with designated funds. Local business owners along Pacific Boulevard have expressed a boost to the local economy, reporting higher store sales and a much-improved visual display while traveling along Pacific Boulevard.

Pedestrian Parklet

Surrounding Local Attractions




Market Demographics

Population 1 Miles 3 Miles 5 Miles

2022 Population 65,328 437,961 1,100,020

2017 Population 67,627 445,620 1,115,942

2010 Population 65,626 430,201 1,073,158

2000 Population 67,325 422,462 1,040,912

Households by Income 1 Miles 3 Miles 5 Miles

$150,000 or More 2.68% 2.17% 2.57%

$100,000 - $149,000 7.31% 6.86% 6.84%

$75,000 - $99,999 8.23% 8.98% 8.67%

$50,000 - $74,999 16.22% 17.17% 16.68%

$35,000 - $49,999 18.62% 17.04% 16.06%

Under $35,000 46.93% 47.78% 49.15%

Average Household Income $49,075 $48,272 $48,536

Median Household Income $36,885 $36,659 $35,675

Per Capita Income $12,138 $11,329 $12,119

Households 1 Miles 3 Miles 5 Miles

2022 Households 16,654 105,127 275,453

2017 Households 16,623 103,899 270,717

2010 Households 16,153 100,768 260,951

2000 Households 16,099 98,306 251,713

103,900 ±Households within a Three-mile Radius

Huntington Park General Information

Incorporated 09/01/1906

Form of Government Five-member Council

City Area-Square Miles 3.003

Huntington Park Registered Voters 19,466

Average Household Income $37,711

City Flower Poinsettia

Summer Average Temperature 84°

Winter Average Temperature 65°

Annual Rainfall 15"

Elevation 170'

Latitude 33°59'N

Longitude W118° 13'W

Population (2017 Census) 61,348

Demographic Summary




Market Demographics

HouseholdsThere are currently 16,623 households in your selected geography. The number of households has changed by 3.25% since 2000. It is estimated that the number of households in your area will be 16,654 five years from now, which represents a change of 0.19% from the current year. The average household size in your area is 3.98 persons.

PopulationIn 2017, the population in your selected geography is 67,627. The population has changed by 0.45% since 2000. It is estimated that the population in your area will be 65,328.00 five years from now, which represents a change of -3.40% from the current year. The current population is 50.06% male and 49.94% female. The median age of the population in your area is 30.13, compare this to the US average which is 37.83. The population density in your area is 21,523.52 people per square mile.

Household IncomeIn 2017, the median household income for your selected geography is $36,885, compare this to the US average which is currently $56,286. The median household income for your area has changed by 26.41% since 2000. It is estimated that the median household income in your area will be $39,691 five years from now, which represents a change of 7.61% from the current year. The current year per capita income in your area is $12,138, compare this to the US average, which is $30,982. The current year average household income in your area is $49,075, compare this to the US average which is $81,217.

Race and EthnicityThe current year racial makeup of your selected area is as follows: 51.25% White, 0.76% Black, 0.04% Native American and 0.71% Asian/Pacific Islander. Compare these to US averages which are: 70.42% White, 12.85% Black, 0.19% Native American and 5.53% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. For the current year, people of Hispanic origin make up 97.30% of the current year population in your selected area. Compare this to the US average of 17.88%.

EmploymentIn 2017, there are 13,847 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 36.20% of employees are employed in white-collar occupations in this geography, and 63.98% are employed in blue-collar occupations. In 2017, unemployment in this area is 6.11%. In 2000, the average time traveled to work was 33.00 minutes.

Geography - 1 Mile Radius

67,600 ±Population within a One-mile Radius

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