murrieta pointe - loopnet · 2016. 3. 29. · murrieta pointe murrieta, ca 2030 main street, suite...

MURRIETA POINTEMURRIETA, CA

2030 Main Street, Suite 1650 Irvine, CA 92614phone 949.585.7610 fax 949.585.7611 [email protected]

www.hanleyinvestment.com

INVESTMENT OFFERING

Exclusively Listed By:

Edward B. Hanley, CCIMPresident

[email protected]

William B. AsherManaging Director

[email protected]

Exclusively Listed By:

Brian BielatowiczSenior Vice President

[email protected]

Mike HannaVice President

[email protected]

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

MURRIETA POINTE

TABLE OF CONTENTS

SECTION I Offering Summary• Investment Overview

• Investment Summary

• Rent Roll

• Income & Expense

SECTION II Property Description• Location Overview

• Property Photos

• Local & Regional Maps

• Aerial Overview

• Parcel Map

• Site Plan

• Tenant Profiles

SECTION III Area Description• Area Overview

• Demographic Report


MURRIETA POINTE

Investment Highlights

• Attractive Assumable Below Market Interest Rate Financing; 5.82% Interest Rate;

$3,600,000 (23%) Down Payment; 7% Cash on Cash Return.

• Outstanding Value-Add Investment Opportunity; Investor will enjoy a substantially higher return upon leasing

the 18% vacancy.

• Pride of Ownership Investment Opportunity; 2007 Construction.

• Diverse Tenant Roster Including: Starbucks, Rabobank, Indigo Joe’s, Scottrade and Household Financial Corporation.

• Outstanding Signalized Intersection Location; Easily Accessible from I-15 and I-215.

• Situated on Murrieta Hot Springs Road, the Premier East/West Thoroughfare in Murrieta.

• Ideally Located Directly Across the Street from the Newly Approved 1.4 Million Square Foot Golden Triangle

Lifestyle Development.

• Ease of Management; All Tenants on New NNN Leases.

INVESTMENT OVERVIEW

Murrieta Pointe is a newly constructed, pride of ownership 38,554

square foot multi-tenant retail center located at the signalized

intersection of Murrieta Hot Springs Road and Hancock Avenue in

the city of Murrieta, CA. Anchored by Starbucks, Rabobank,

Indigo Joe’s, Scottrade and Household Financial Corporation, the

offering features a diverse tenant mix providing an ideal shopping

and dinning experience. Situated on Murrieta Hot Springs Road,

the premier east/west thoroughfare in the area, Murrieta Pointe

was built in 2007 and benefits from outstanding accessibility, exposure, and visibility. This investment features in-

place assumable financing at a below market fixed 5.82% interest rate with interest only payments for the first five

years. Murrieta Pointe provides a prospective investor with a unique opportunity to acquire a newly built retail center

with exceptional construction, irreplaceable location, strong tenant mix and excellent long term fixed rate assumable

financing.


MURRIETA POINTE

INVESTMENT SUMMARY

23% $3,600,000

6.1%

7.0%

7.0%

10.6%

78% Loan to Value ($12,400,000)

23% Down Payment ($3,600,000)

5.82% Interest Rate Fixed for 10 Years (Interest only First 5 Years - August 2012)

30 Year Amortization, Due in 10 Years - August 2017

(Contact Listing Broker for Further Details)

Net Rentable Area (NRA):

Price per Square Foot (NRA):

31,512

$507.74

Capitalization Rate (Current):

Cash-on-Cash Return (Current):

Capitalization Rate (Proforma):

Cash-on-Cash Return (Proforma):

Existing Financing (Must Be Assumed):

FINANCING SUMMARY

Year Built:

Lot Size (Acres):

2007

4.63

Down Payment:

LOCATION

40735 Murrieta Hot Springs Road

Murrieta, CA 92562

Price:

OFFERING SUMMARY

Murrieta Pointe

$16,000,000


MURRIETA POINTE

RENT ROLL

TENANT SUITE SQUAREFOOTAGE

LEASE START

LEASEEXPIRATION

CURRENT RENT/SQ. FT.

CURRENT MONTHLY RENT INCREASES LEASE

TYPE OPTIONS

Rabobank(Ground Lease) D-2 5,000 08/04/07 12/31/27 $2.08 $10,417.00 12% Increase

Every 5 years - Aug. 2012 NNN Four (5) Year Options12% Increases Every 5 Years

Starbucks D-1 2,042 07/01/06 07/31/16 $3.48 $7,106.16 12% IncreaseEvery 5 years - July 2011 NNN Two (5) Year Options

12% Increases Every 5 Years

Salon O A-1 1,997 09/01/06 08/31/11 $3.13 $6,249.92 3% IncreasesAnnual - Sept. NNN Two (5) Year Options

3% Annual Increases

Red Persimmon Salon A-2 1,300 10/01/06 09/30/16 $2.99 $3,892.51 Greater of 3% or CPIAnnual - Oct. NNN Two (5) Year Options

Greater of 3% or CPI Annually

Dr. Yap, D.D.S. A-3 1,600 09/01/06 08/31/16 $2.92 $4,667.96 3% IncreasesAnnual - Sept. NNN

Two (5) Year OptionsGreater of FMV or 3% Increase

3% Increases Annually

HSBC Finance Corp. A-4 1,947 10/01/06 09/30/11 $1.85 $5,680.33 Greater of 3% or CPIAnnual - Oct. NNN

One (5) Year OptionGreater of FMV or 3% Increase


The Treehouse A-5 1,759 10/01/06 09/30/11 $3.08 $5,411.75 Greater of 3% or CPIAnnual - Oct. NNN



Gourmet Italia A-6 2,484 09/01/06 08/31/16 $2.75 $6,831.00Min 3% to Max 5%

CPI IncreasesAnnual - Nov.

NNNTwo (5) Year Options

Greater of FMV or 3% Increase3% Increases Annually

Indigo Joe's B-1 5,239 09/01/06 08/31/16 $2.38 $12,455.00 N/A NNN Two (5) Year Options

Scottrade B-2 1,370 08/27/07 08/31/12 $3.09 $4,233.33 3% IncreasesAnnual - Sept. NNN

Two (3) Year OptionsGreater of 3% or CPI



MURRIETA POINTE

RENT ROLL

TENANT SUITE SQUARE FOOTAGE

LEASE START

LEASEEXPIRATION

CURRENT RENT/SQ. FT.

CURRENT MONTHLY RENT INCREASES LEASE

TYPE OPTIONS

Available B-3 778 N/A N/A $2.25 TBD N/A N/A N/A

Twinkle Twinkle Boutique B-4 1,375 06/01/08 05/31/12 $2.60 $3,575.00 3% IncreasesAnnual - Dec. NNN



Dudley's Wine & Gifts B-5 909 12/01/07 11/30/12 $3.30 $2,996.27 Greater of 3% or CPIAnnual - Jan. NNN One (5) Year Option


Temecula Valley Digestive Disease C-1.5 2,285 09/08/08 09/30/13 $1.95 $4,455.00 None NNN One (5) Year Option

Available C-2 805 N/A N/A $2.00 TBD N/A N/A N/A

Available C-2.5 2,599 N/A N/A $2.00 TBD N/A N/A N/A

Bella Blu Boutique C-3 2,144 11/01/08 11/01/11 $1.65 $3,538.00 N/A NNN One (2) Year Option

Available C-4 1,470 N/A N/A $2.00 TBD N/A N/A N/A

Mexican Restaurant C-5 1,451 12/14/08 12/31/13 $2.71 $3,937.69 3% Annual Increases NNN Two (5) Year OptionsAnnual 3% Increases

TOTAL SQUARE FOOTAGE: 31,512 $85,447 Monthly

TOTAL AVAILABLE: 5,652 $1,025,363 Annually

TOTAL OCCUPIED: 25,860 (82% Occupancy)

(18% Vacancy)


MURRIETA POINTE

INCOME & EXPENSE

Current Proforma

Scheduled Gross Income: $1,025,363 $1,174,913

Expense Reimbursement: $236,454 $292,620

Total Operating Income: $1,261,817 $1,467,533

* Vacancy: $0 ($56,421)

Gross Operating Income: $1,261,817 $1,411,113

Total Operating Expenses: ($288,134) ($292,620)

Net Operating Income (NOI): $973,683 6.1% $1,118,492 7.0%

Annual Debt Service: ($721,680) ($721,680)

Cash Flow after Debt Service: $252,003 7.0% $396,812 11.0%

*Current Vacancy = 18%; Proforma Vacancy = 5% Excluding Starbucks, Rabobank, HFC, and Scottrade

Amount $/SF

Taxes: $176,000 $5.59

Insurance: $12,605 $0.40

CAM: $68,768 $2.18

Management (3% of SGI): $30,761 $0.98

Total Operating Expenses: $288,134 $9.14

$0.76

ANNUALIZED OPERATING DATA

CURRENT OPERATING EXPENSES


MURRIETA POINTE

Location Highlights

• Hard Corner Signalized Location; Average Daily Traffic Count in Excess of 46,000 Cars per Day.

• Average Household Income in Excess of $87,000 within a 5-Mile Radius.

• Population in Excess of 162,000 People within a 5-Mile Radius.

• Strategically Located Between I-15 With an Average Daily Traffic Count in Excess of 253,000 Cars Per Day and

I-215 With an Average Daily Traffic Count in Excess of 167,000 Cars Per Day at the Murrieta Hot Springs Exit.

• Traffic Generated by Surrounding National Credit Tenants Wal-Mart, Sam’s Club, Home Depot, Best Buy,

Chick’s Sporting Goods, Rite Aid, Ralph’s and Ross.

Murrieta Pointe is located at the signalized intersection of Murrieta

Hot Springs Road and Hancock Avenue in the city of Murrieta,

CA. The subject property is located on the premier retail

thoroughfare in Murrieta with an average daily traffic count in

excess of 46,000 cars per day. Murrieta Pointe is strategically

located between the I-15 with an average daily traffic count in

excess of 253,000 cars per day and the I-215 with an average

daily traffic count in excess of 167,000 cars per day at the

Murrieta Hot Springs Road Exit. Murrieta is one of the fastest

LOCATION OVERVIEW

Murrieta Pointe is adjacent to the newly built residential

apartment homes and the future Golden Triangle

development which is an approved 1.4 million square foot

lifestyle development directly across from the subject

property. This 200 acre mixed use development provides

opportunities for major retail tenants, entertainment, a

convention center, office space, restaurants and hotels with

conference facilities.

growing cities in Riverside County with a population of 162,000 people and an average household income of $87,000

within a 5-mile radius. Murrieta Pointe benefits from traffic generated by surrounding national credit tenants Wal-Mart,

Sam’s Club, Home Depot, Best Buy, Chick’s Sporting Goods, Rite Aid, Ralph’s and Ross, among others.


MURRIETA POINTE

PROPERTY PHOTOS – SUBJECT PROPERTY

NOT A PART OF THE OFFERING


MURRIETA POINTE

LOCAL & REGIONAL MAPS


MURRIETA POINTE

AERIAL OVERVIEW

N

MADISON AVENUE

JEFFERSON AVENUE

LOS ALAMOS ROAD

HA

NCO

CK AV

ENU

E

MURRIETA HOT SPRINGS ROAD

THE TRIANGLE - MURRIETA(Future Development)

www.shop-the-triangle.com

SUBJECT PROPERTY

WALSH MEDICAL ARTS CENTER

MURRIETA POINTE MEDICAL CENTER

GOLDEN TRIANGLE MEDICAL COURTYARD

NEW MULTI-FAMILY HOUSING DEVELOPMENT


MURRIETA POINTE

PARCEL MAP

SUBJECT PROPERTY

N


MURRIETA POINTE

SITE PLAN

N

SUITE TENANT SQUARE FOOTAGE SUITE TENANT SQUARE FOOTAGE

A-1 Salon O 1,997 B-4 Twinkle Twinkle Clothing 1,375

A-2 Red Persimmon Nails & Spa 1,409 B-5 Dudley's Wine & Gifts 909

A-3 Dr. Yap, DDS 1,711 C-1 Dr. Hong 2,285

A-4 Household Finance 2,032 C-2 Available 3,404

A-5 The Treehouse 1,759 C-3 Bella Blu Boutique 2,144

A-6 Gourmet Italia 2,484 C-4 Available 1,470

B-1 Indigo Joe's Sports Pub & Restaurant 5,239 C-5 Mexican Restaurant 1,451

B-2 Scottrade 1,370 Pad 1 Starbucks 2,102

B-3 Available 778 Pad2 Rabobank 5,000


MURRIETA POINTE

TENANT PROFILES

Starbucks Corporation (SBUX: NasdaqGS) engages in the purchase, roasting, and sale of whole bean coffees

worldwide. The company offers brewed coffees, espresso beverages, cold blended beverages, various

complementary food items, coffee-related accessories and equipment, a selection of premium teas, and a line of

compact discs through its retail stores. It also sells coffee and tea products; and licenses its trademark for retail store

operations, and grocery and warehouse club stores, as well as to produce and distribute its branded products. In

addition, Starbucks produces and sells ready-to-drink beverages, which include bottled coffee drinks, espresso

drinks, and a line of ice creams. The company's brand portfolio includes super premium Tazo teas, Starbucks Hear

Music compact discs, Seattle's Best Coffee, and Torrefazione Italia coffee. It operates retail stores primarily in the

United States, Canada, the United Kingdom, Thailand, Australia, Germany, China, Singapore, Puerto Rico, Chile,

and Ireland. As of September 30, 2007, the company operated approximately 8,505 retail stores. Starbucks was

founded in 1985 and is based in Seattle, Washington.

www.starbucks.com

As a leading online brokerage firm, Scottrade offers a full line of investment products, online trading platforms and

market research tools to help investors take control of their financial future. The company, which services more

than 1.7 million customers offers low-cost trading in securities, bonds and more than 9,500 mutual funds.

Customers can trade via phone, wireless device or through a broker at one of the firms 300 branch offices.

Scottrade’s dedication to excellence is what truly makes them stand apart from other brokerage firms and better

serve customers, employees and communities.

www.scottrade.com


MURRIETA POINTE

TENANT PROFILES

The Rabobank Group comprises 174 independent local cooperative Rabobanks in the Netherlands plus their central

organization Rabobank Nederland and its subsidiaries. Rabobank serves more than 9 million private individuals and

corporate clients in the Netherlands and a growing number abroad. It employs over 60,000 staff and is represented in 43

countries. The Rabobank Group has the highest credit rating (AAA), awarded by the well-known international rating

agencies Moody's and Standard & Poor's. In terms of Tier 1 capital, the organization ranks among the world's fifteen

largest financial institutions. Rabobank International was formally established in 1996, international activities have long

been part of that history. Rabobank International slowly came into existence over the course of the 1970s - when

Rabobank’s business customers began to express a growing demand for services abroad. In response to a clear need for

international banking services, Rabobank opened branch offices in Europe, North America, Asia and South America and

entered into strategic alliances with European partners. It also purchased existing foreign banks (such as ADCA in

Germany and PIBA in Australia, ACC in Ireland and the Valley Independent Bank in the US), enabling Rabobank to take

its expertise in the field of consumer banking and the agricultural sector to promising markets abroad. Today Rabobank

has 349 offices in 43 different countries.

www.rabobank.com

Household Financial Corporation (HFC) has more than 500 locations throughout 39 states. HFC is a subsidiary of the

HSBC Group, one of the largest financial services organizations in the world. HSBC is one of the top 10 financial

services companies in the United States with assets approaching $300 billion. HFC provides services in personal

finance, consumer finance, commercial banking, private banking and corporate investment banking to over 60 million

customers.

www.hfc.com


MURRIETA POINTE

AREA OVERVIEW - MURRIETA

Murrieta is located adjacent to the cities of Lake Elsinore and Wildomar, California. Murrieta officially became a

city on July 1, 1991, when it was already home to more than 24,000 residents. Compare that to the 2,200

estimated to have been living in the city in 1980. Today, more than 93,000 people have moved to the community

making it one of the five largest in Riverside County. The natural scenic beauty of the area and what is still by

California standards reasonably priced housing continues to attract significant numbers of residents and

businesses who are finding Murrieta a great place to grow.

Those living in the community find distinguished schools, abundant recreation, excellent medical facilities

expanding employment opportunities and one of the lowest crime rates in Southern California. Entrepreneurs find

a market growing larger by the day, above average household incomes, a skilled labor force and a business-

friendly city hall. It’s a community with a past and vision for its future. One that welcomes challenges, takes risks,

embraces opportunity. New office buildings are in planning and more than 900 acres of land is destined to

become the industrial hub for the region. Murrieta is the place to locate, expand, invest and develop.

The community was one of the first in the nation to be chosen by Verizon for its FTTP – fiber to the premises

program. This isn’t just a high speed fiber line to a neighborhood or business park. It’s fiber directly to every

property. Fiber optic lines have been strung through all Murrieta neighborhoods and have made high speed

service available to residential properties. Now the service, which the company calls FIOS, has been installed in

retail centers and business parks. This service is vital to many businesses and is one more reason Murrieta is “a

great place to grow.”

The rebuilt Murrieta Hot Springs Road, the road which the subject property strategically is on, passes through the

heart of this zone and features premier freeway access. The street crosses both I-15 and I-215, with traffic

accommodating by expanded and efficient interchanges.

The City of Murrieta is served by the Murrieta Valley Unified School District (MVUSD). The district contains eleven

elementary (K-5) schools, three middle (6-8) schools, two comprehensive high (9-12) schools, Vista Murrieta High

School and Murrieta Valley High School, one continuation school, and one independent study school. Because of

the explosive growth in the area, one elementary school, another middle school, and another high school are in

the making.

At the base of the Santa Ana Mountains in the county of Riverside, Murrieta

is located in the midst of one of California’s fastest growing regions. Known

for its natural beauty, Murrieta offers an attractive quality of life for individuals

and families, as well as businesses, seeking to relocate. A safe, family-

oriented environment Murrieta was recently recognized as the safest city in

Riverside County and the 11th safest city overall in California


MURRIETA POINTE

AREA OVERVIEW - MURRIETA

Work Starts on New Hospital in Murrieta

November 30, 2008Loma Linda University Medical Center is preparing to begin construction on its latest hospital venture. Grading has started on a 106-bed hospital off the 215 Freeway in Murrieta.

The $211 million hospital, known as Loma Linda University Medical Center - Murrieta, is expected to open in early 2011. It is planned on 50 acres at the northeast corner of Antelope and Baxter roads. A second phase is planned with another 114 beds to be added about two years after the hospital opens.

The hospital will offer six surgical suites, a laparoscopic surgery center, an imaging center, complete emergency-room care, general-care and acute-care services. It also will feature interventional cardio-vascular services, obstetrics, pediatrics, urology and orthopedics.

The project is being developed by a consortium of doctors from southwest Riverside County and Loma Linda hospital. Surgical Development Partners, a Tennessee-based hospital developer, has a small ownership interest in the venture.

Loma Linda University Medical Center will provide day-to-day management of the facility. The hospital will provide medical care to an underserved area that is rapidly growing, said Dr. John Piconi, chairman of the new hospital board.

"Southwest Riverside County will benefit from the premier health-care services and technology that this hospital will offer," Piconi said in a news release.

Loma Linda officials said the project is part of the hospital's strategic plan "to bring appropriate levels of health care closer to where people live."

"A lot of folks are having to leave the area to get medical care and hospital treatment because there aren't enough hospital beds and facility services to meet their needs," said Mel Sauder, Loma Linda's senior vice president for health-care business development.

Sauder said the timing of the venture was favorable from a financial standpoint.

"We were fortunate that we were able to secure the financing for the project before a lot of this instability in the capital markets really hit," Sauder said.

The Murrieta hospital, along with a new outpatient facility in Beaumont, will free up bed space at Loma Linda's main campus, he said.

"Our whole regional strategy allows Loma Linda to take services closer to where people live," he said. "It alleviates some of the congestion and the volume of patients that we currently have at the medical center in Loma Linda."

Loma Linda University Medical Center averages more than 30,000 inpatient discharges and roughly 500,000 outpatient visits per year.

The medical campus will serve as the anchor for the development of new corporate research parks along the 215 corridor, said Murrieta Mayor Rick Gibbs. After five years of operation, the hospital is expected to generate 500 jobs with an estimated payroll of $32 million, according to an economic estimate by Surgical Development Partners.

www.dailybulletin.com

PRESS RELEASE


MURRIETA POINTE

AREA OVERVIEW

50-Acre Medical Campus Proposed for Murrieta

July 8, 2008

LLU Partnership

The group met with Loma Linda University officials and the push for the hospital gained momentum.

Ruthita Fike, chief executive of Loma Linda University Medical Center, said the medical board was working on a plan to improve services and expand within the Inland area when it reached out to Piconi.

"We recognized we had unprecedented growth in this area of the county," she said. "It wasn't realistic with the traffic patterns to have patients continue to drive to our site.“

Fike said the board was sold on the physician group's push to provide quality care. The two started working to form a partnership, where doctors would work in both places.

If the hospital moves forward it would help bring in needed beds to the area, said Eric Frykman, director of the Riverside County Community Health Agency.

Frykman said 1,400 more hospital beds will be needed in southern Riverside County by 2020.

The new hospital along with the expansion of Rancho Springs Medical Center in Murrieta and the Inland Valley Regional Medical Center in Wildomar and a new hospital in Temecula would fill 30 percent of that need, he said.

City Smoothes Project's Way

Mayor Rick Gibbs helped usher the project through the city's procedures, helping deal with problems in the planning and building departments, Piconi said.

For the Murrieta City Council, the medical campus would give the city a way to push for economic development and provide high-paying jobs in the city.

After five years, the hospital would have 500 jobs with an annual payroll of $32 million.

It would keep many medical professionals who live in town from driving out of the county for work.The two medical offices would have a $10 million payroll.

Gibbs said the project would spark the transformation of the surrounding area from empty fields into the Antelope Business Park and become an attractive bargaining piece to attract more medical research and development firms.

www.pe.com

PRESS RELEASE


MURRIETA POINTE

DEMOGRAPHIC REPORT

SUBJECT PROPERTY: 40735 Murrieta Hot Springs RoadMurrieta, CA 92562

1-Mile 3-Mile 5-MilePopulation 2013 Projection 11,001 131,045 210,667 2008 Estimate 8,394 99,657 162,334 2000 Census 4,184 48,227 84,028 1990 Census 2,106 23,143 40,515 Growth 1990 - 2000 98.67% 108.39% 107.40% Households 2013 Projection 3,138 40,997 65,850 2008 Estimate 2,448 31,706 51,588 2000 Census 1,271 15,818 27,462 1990 Census 684 8,039 13,839 Growth 1990 - 2000 85.82% 96.77% 98.44% 2008 Est. Population by Single Classification Race 8,394 99,657 162,334 White Alone 5,646 71,061 115,667 Black or African American Alone 304 4,619 7,351 American Indian and Alaska Native Alone 52 813 1,413 Asian Alone 635 7,532 12,001 Native Hawaiian and Other Pacific Islander Alone 13 289 551 Some Other Race Alone 1,216 10,015 16,827 Two or More Races 528 5,327 8,525 2008 Est. Population Hispanic or Latino 8,394 99,657 162,334 Hispanic or Latino 2,543 24,989 40,597 Not Hispanic or Latino 5,850 74,668 121,737 2008 Tenure of Occupied Housing Units 2,448 31,706 51,588 Owner Occupied 1,757 24,561 38,819 Renter Occupied 691 7,146 12,768 2008 Average Household Size 3.43 3.12 3.13 2008 Est. Households by Household Income 2,448 31,706 51,588 Income Less than $15,000 170 1,926 3,095 Income $15,000 - $24,999 88 2,175 3,239 Income $25,000 - $34,999 202 2,269 3,427 Income $35,000 - $49,999 310 4,165 6,416 Income $50,000 - $74,999 510 6,833 10,882 Income $75,000 - $99,999 510 5,335 8,627 Income $100,000 - $149,999 442 6,023 10,219 Income $150,000 - $249,999 186 2,427 4,414 Income $250,000 - $499,999 25 436 941 Income $500,000 and over 5 118 329 2008 Est. Average Household Income $81,123 $82,565 $87,3002008 Est. Median Household Income $72,236 $69,458 $72,0942008 Est. Per Capita Income $23,665 $26,357 $27,835

© 2008 CLARITAS INC. All rights reserved.

murrieta pointe - loopnet · 2016. 3. 29. · murrieta pointe murrieta, ca 2030 main street, suite...

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