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CONFIDENTIAL OFFERING MEMORANDUM 8150 Hageman Road BAKERSFIELD, CALIFORNIA Investment / Owner User Sale Opportunity

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Page 1: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

CONFIDENTIAL OFFERING MEMORANDUM

8150 Hageman RoadBAKERSFIELD, CALIFORNIA

Investment / Owner User Sale Opportunity

Page 2: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

2Cushman & Wakefield | Pacific Commercial Realty Advisors

Vincent RocheExecutive Director | Principal

+1 661 633 3817

[email protected]

Lic. 01155079

For more information, pleasecontact

one of the following individuals:

This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the ConfidentialityAgreement (the “Confidentiality Agreement”) signed by you and constitutes part of the Confidential Information (asdefined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possibleinvestment in 8150 Hageman Road, Bakersfield, CA(the “Project”), and is not to be used for any other purpose ormade available to any other party without the prior written consent of the owner or its exclusive broker, Cushman &Wakefield | Pacific Commercial Realty Advisors (Cushman & Wakefield). This Memorandum was prepared by Cushman& Wakefield based primarily on information supplied by Owner. It contains select information about the Project and thereal estate market but does not contain all the information necessary to evaluate the Project. The financial projectionscontained herein (or in any other Confidential Information) are for general reference only. They are based onassumptions relating to the overall economy and local competition, among other factors. Accordingly, actual results mayvary materially from such projections. Various documents have been summarized herein to facilitate your review; thesesummaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. Whilethe information contained in this Memorandum and any other Confidential Information is believed to be reliable, neitherCushman & Wakefield nor Owner guarantees its accuracy or completeness. Because of the foregoing and since theinvestment in the Project is being offered on an “As Is, Where Is” basis, a prospective investor or other party authorizedby the prospective investor to use such material solely to facilitate the prospective purchaser’s investigation, must makeits independent investigations, projections and conclusions regarding the investment in the Project without reliance onthis Memorandum or any other Confidential Information. Although additional Confidential Information, which mayinclude engineering, environmental or other reports, may be provided to qualified parties as the marketing periodproceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers andenvironmental experts. Neither Cushman & Wakefield nor Owner guarantees the accuracy or completeness of theinformation contained in this Memorandum or any other Confidential Information provided by Cushman & Wakefield andOwner. Owner expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or toterminate any negotiations with any party at any time with or without written notice. Owner shall have no legalcommitment or obligations to any prospective investor unless and until a written sale agreement has been fullyexecuted, delivered and approved by Owner and any conditions to Owner’s obligations thereunder have been satisfiedor waived. Owner has retained Cushman & Wakefield as its exclusive broker and will be responsible for any commissiondue to Cushman & Wakefield in connection with a transaction relating to the Project pursuant to a separate agreement.Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Owner. Eachprospective investor will be responsible for any claims for commissions by any other broker in connection with aninvestment in the Project if such claims arise from acts of such prospective investor or its broker. This Memorandum isthe property of Owner and all parties approved by Owner and may be used only by parties approved by Owner. Noportion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted underthe Confidentiality Agreement.

Offering Memorandum Disclaimer

Stacy BurtSales Associate

+1 661 633 3833

[email protected]

Lic. 01938710

Page 3: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

Table of Contents

Executive Summary 4

The Property 6

Tenant Profile 9

Lease Summary 10

Photos, Site Plan 11

Market Overview 13

Page 4: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

4Cushman & Wakefield | Pacific Commercial Realty Advisors

Executive Summary 2006YEAR BUILT

3,584 SFRENTABLE BUILDING AREA

23 SurfacePARKING

100%OCCUPANCY

.45ACRES

NEARBY

CO-TENANCY

& RESIDENTAL

HIGHLIGHTS

• Hageman Road frontage

• Located in heart of Northwest

• Located adjacent to 99¢ Only and McDonalds

• Just off of busy 4-Way intersection of Coffee Rd & Hageman Road

• National brands in immediate proximity

• Strong residential and businesses around site

• Zoned C-1

8150 Hageman Road

Bakersfield, CA 93312

Traffic Counts

Hageman Road 20,483 CPD

Coffee Road 30,193 CPD

$1,610,000

Page 5: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

5Cushman & Wakefield | Pacific Commercial Realty Advisors

8150 Hageman Road is located at the NWQ of Coffee Road and Hageman Road in Northwest Bakersfield..

It is a freestanding building with constructed in 2006 with access to site off of Centennial Plaza Way via

Hageman Road. The subject is adjacent to 99¢ Only and McDondalds. Neighboring tenants include Vons,

Winco, CVS, Chipotle, Bank of America, Starbucks, Jimmy John’s and Carl’s Jr.

Coffee Road is one of the primary north/south arterials that connects Northwest to Southwest Bakersfield and

provides access to the Westside Parkway. Hageman Road runs east/west through Northwest Bakersfield.

Traffic Counts at the intersection of Coffee Road and Hageman Road are 50,676 cars per day. Established

residential surrounds site and Centennial High School and Riverlakes Golf Course are nearby.

$86,016.00

5.3%

$1,610,000

2019 Net Income

Cap Rate

Asking Sales Price

$449.00Sales Price Per Foot

Executive Summary

Hageman Road 20,483 CPD

Coffee Road 30,193 CPD

Page 6: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

6Cushman & Wakefield | Pacific Commercial Realty Advisors

The Property

AERIAL

NORTHWEST BAKERSFIELD

NORTHWEST PROMENADE

ROSEDALE HIGHWAY

CO

FF

EE

RO

AD

CA

LL

OW

AY

DR

IVE

AL

LE

N R

OA

D

RE

NF

RO

RO

AD

HAGEMAN ROAD

NORRIS ROAD

SNOW ROAD

8150 Hageman Road

Bakersfield, CA 93312

CO

FF

EE

RO

AD

30

,193 C

ars

Pe

r D

ay

HAGEMAN ROAD

20,483 Cars Per Day

Page 7: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

7Cushman & Wakefield | Pacific Commercial Realty Advisors

The Property

INTERSECTION AERIAL

8150 Hageman Road

Bakersfield, CA 93312

Page 8: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

8Cushman & Wakefield | Pacific Commercial Realty Advisors

The Property

CLOSE-UP AERIAL

Hageman Road 14,000 Cars Per Day

Co

ffe

e R

oa

d 1

8,0

00 C

ars

Pe

r D

ay

Ce

nte

nn

ial P

laza W

ay

8150 Hageman Road

Bakersfield, CA 93312

Rear of Building

Side of Building

Front of Building

Page 9: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

9Cushman & Wakefield | Pacific Commercial Realty Advisors

Tenant Profile

www.affordablepethospital.com

The veterinarians at Affordable Pet Hospital are committed to

their client’s pet's health offering quality care at affordable

prices. Affordable Pet Hospital excels in the science of

Veterinary medicine.

Affordable Pet Hospital is a full-service, animal hospital whose

mission is to provide the highest standard of veterinary care for

pets. We provide friendly, informative, and supportive services

for you and your pet, while maintaining a superior working

environment for our employees.

Affordable Pet Hospital offers the Bakersfield animal

community emergency veterinary services as well as medical,

surgical, and dental veterinary care. With an in-house pharmacy,

boutique and access to specialists, the facility offers a one stop

for your pet's health and medical care.

Affordable Pet Hospital is open for appointments and

emergencies during normal business hours and on Saturdays.

8150 Hageman Road

Bakersfield, CA 93312

Page 10: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

10Cushman & Wakefield | Pacific Commercial Realty Advisors

Lease Summary

TENANT AFFORDABLE PET HOSPITAL

Premises Approximately 3,584sf

Lease Commencement 1/1/2016

Lease Expiration 12/31/2020

Lease Term 5 Year

Renewal Options 1 Five (5) Year Renewal

Lease Type Triple Net (NNN)

Monthly Base Rent $7,168.00 per month

Increases

Utilities Tenant’s Responsibility

Taxes & Assessments Tenant’s Responsibility

Building Maintenance Tenant’s Responsibility

Insurance Tenant’s Responsibility

Roof & Structure Tenant’s Responsibility

Page 11: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

11Cushman & Wakefield | Pacific Commercial Realty Advisors

Interior PhotosPhotos of interior of previous tenant

8150 Hageman Road

Bakersfield, CA 93312

Page 12: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

12Cushman & Wakefield | Pacific Commercial Realty Advisors

Floor Plan

Floor Plan of previous tenant

8150 Hageman Road

Bakersfield, CA 93312

Page 13: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

13Cushman & Wakefield | Pacific Commercial Realty Advisors

Demographics 8150 Hageman Road

Bakersfield, CA 93312

Page 14: Investment / Owner User Sale Opportunity...Market Overview BAKERSFIELD OVERVIEW Bakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

14Cushman & Wakefield | Pacific Commercial Realty Advisors

Market Overview

BAKERSFIELD OVERVIEWBakersfield is the retail trade center for Kern County’s 925,036 residents. Bakersfield is California’s

9th most populous city with over 393,000 people. It ranks 6th in population and density growth,

and is 1st in population and wealth growth in the state. The median age is 30.7, offering the right

balance of young and older professionals.

BAKERSFIELD’S ECONOMYThe Bakersfield retail market is comprised of just over 12.9 million square feet (msf) of space

(excluding the 1.15-msf Valley Plaza Regional Mall) The 2017 year-end estimated vacancy rate

recorded 7.9%.

The job market is expecting an average growth rate of 1.1%, or approximately 206,939 new jobs

over the next four years.

Bakersfield reported over $8 Billion in retail sales in 2014 (More than any other city in LA County

and Orange County besides Los Angeles.) The Bakersfield median household income is 5.5%

higher than the nation’s.

KERN COUNTY’S ECONOMYLocated at the southern end of California’s Central Valley, Kern County consistently ranks among

the top five most-productive agricultural counties in the U.S. and is one of the nation’s leading

petroleum-producing counties. Kern County is geographically the center of California’s population,

making it accessible to 38 million consumers. Because of its unique geographical positioning, Kern

County has also become the distribution center for some of the world’s largest companies.

Additionally, with more than 8,000 square miles, Kern offers everything from big city amenities to

small town friendliness, along with outstanding recreational opportunities and easy access to

ocean, alpine, and desert.

DEMOGRAPHICSBakersfield Kern County

2023 Projection 393,912 925,036

2018 Population 383,612 897,008

2010 Census 348,116 839,631

Growth 2018-2023 .5% .6%

Growth 2010-2018 2.8% 30.9%

Bakersfield Kern County

2023 Projection 131,349 294,519

2018 Total Households 125,705 280,115

2010 Census 111,740 254,610

Growth 2018-2023 .9% 1.0%

Growth 2010-2018 2.6% 1.9%

Bakersfield Kern County

2018 Average Household Income $83,975 $76,461

2018 Median Household Income $63,172 $54,900

2018 Est. Per Capita Income $27,591 $24,421

Some Recent Headlines about Bakersfield and Kern County:

• Kern County Cost of Living Still Lower than U.S. Average

• Bakersfield No. 2 Best City of the Future

• Bakersfield No. 9 Best U.S. Housing Market to Watch

• Bakersfield Home Prices Increase

• Bakersfield Fourth Nationally for Architecture, Engineering Jobs

• Bakersfield Among Top Destinations where Millennials Moving

8150 Hageman Road

Bakersfield, CA 93312