nnn leased investment

KIDDER.COM

NNN LEASED INVESTMENT

OFFERING MEMORANDUM | 2401 WEST WHITTIER BOULEVARD | MONTEBELLO, CA 90640

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

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. Kidder Mathews 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, PCB’s 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, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews 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.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

01INVESTMENT SUMMARY

02FINANCIAL OVERVIEW

03AREA OVERVIEW

KIDDER.COM

FOUY LY

[email protected] N° 01223864

EXCLUSIVELY LISTED BY

PETER BEAUCHAMP


TABLE OF CONTENTS

32401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS

01INVESTMENT

SUMMARYOFFERING SUMMARY

INVESTMENT HIGHLIGHTS

TENANT PROFILES

SITE PLAN


Kidder Mathews is pleased to offer for sale the Pacific Premier Bank & Wingstop retail pad, a freestanding two-tenant NNN retail investment in the City of Montebello.

THE OFFERING

Positioned within the heart of the Los Angeles metro, this high-image asset is a newly constructed (2019) approximately 4,333 gross SF pad building situated on a high-profile 20,602 SF signalized corner land parcel. The Pacific Premier Bank & Wingstop retail pad opportunity offers the investor a stable income

OFFERING SUMMARY

stream with brand new long-term leases and market rate rental increases. Specifically, Pacific Premier Bank (Nasdaq: PPBI) has 7-year primary term lease (with renewal options) while Wingstop (Nasdaq: WING) has a 10-year term plus multiple renewal options.

The property is strategically positioned with significant frontage along Whittier Boulevard near Downtown Montebello, currently undergoing a major revitalization inclusive of new hotels, multi-family, condos and retail projects. Additionally, Whittier Blvd is one of the most heavily trafficked North/South corridors with daily counts in-excess of 62,000 cars per day

(Whittier Blvd and Garfield Ave).

Montebello is centrally located within Los Angeles county with an exceptionally dense residential and commercial infill population of over 210k having an Average HHI in-excess of $69k (3-miles). Situated just 7-miles from Downtown Los Angeles, the property’s location also benefits from convenient access to nearly all the area’s primary freeways including the I-5, 605, 710 and 60. Additionally, the site is surrounded by a synergistic mix of national retailers such as Costco, Target, Walgreens, Vons, LA Fitness and Rite Aid and is only minutes to the 700k SF Citadel Outlets shopping center.

PROPERTY OVERVIEW

Address 2401 West Whittier Boulevard Montebello, CA 90640

Property Type Class-A Retail

Leaseable SF ±4,148 SF

Land Area ±20,602 SF

Price $4,250,000

Actual NOI $197,484

Actual Cap Rate 4.65%

No of Tenants Two (2)

Year Built 2019 (Q-3 Completion)

Lease Type NNN-Leased

Parking 6:1,000 (surface)

Signage Building and Monument


HIGH-IMAGE ASSET

Newly constructed in 2019, this high-quality Pride of Ownership property built to the highest standards with state-of-the-art bank branch build-out and most recent Wingstop design layout.

Exceptional bank location dating back to 1950s.

INVESTMENT GRADE TENANCY

Pacific Premier Bank (Nasdaq: PPBI) is an $11B regional bank with over 40 branches in multiple states. Recently ranked 3rd Best Performing Regional Bank by S&P Global Market Intelligence.

Wingstop (Nasdaq: WING) is the largest fast casual chicken wings-focused restaurant chain in the world with over 1,200 global locations. 2018 systemwide sales increased 16% to $1.3B (year-over-year) while net new locations increased by 119.

SECURE & STABLE CASH FLOW

Brand new long-term leases with no early termination clause provides investment security.

Pacific Premier Bank will have a corporate guaranteed 7-year initial term with renewal options while Wingstop will have a 10-year lease with renewal options guaranteed by Far West Restaurant Group, the largest Wingstop franchisee in California.

SIGNIFICANT TENANT INVESTMENT

Pacific Premier Bank tenant-paid interior bank branch buildout estimated at $634k ($235/SF).

Wingstop tenant-paid interior restaurant buildout estimated at $289k ($200/SF).

EXCEPTIONAL TRADE-AREA LOCATION

One of the most densely-populated infill submarkets within Los Angeles.

Superior visibility at signalized hard-corner of Whittier Boulevard & Concourse Avenue.

Daily traffic counts in excess of 40,000 VPD.

Established retail trade-area surrounded by national tenancy (Costco, Target, Vons, Rite Aid).

Direct access to various freeways; I-5, I-605, I-710 and SR-60. Population of 727k with Average HHI of nearly $70k (5-mile).

PASSIVE INVESTMENT

Fee simple ownership.

Triple Net (NNN) lease structure with minimal landlord responsibilities.

Two tenants on long-term leases minimizing management obligations.

Ideally suited for the 1031 Exchange investor.

Deliver free and clear of existing financing.

INVESTMENT HIGHLIGHTS


OWNERSHIP NASDAQ: PPBI

YEARS IN BUSINESS

22 years

MARKET CAP

$1.8 Billion

REVENUE 2017 $194 Million

HEADQUARTERS Irvine, CA

CREDIT RATING BBB+

PACIFIC PREMIER Founded in 1983, Pacific Premier Bank® is a publicly-traded (Nasdaq: PPBI) state-chartered bank headquartered in Irvine, California, serving businesses and consumers throughout the United States. With approximately $11.5 billion in total assets, they are one of the strongest-performing, diversified, and fastest growing banks in the nation. Ranked as one of America’s Best Banks by Forbes (2019), their commitment to providing unparalleled client service supporting the businesses and individuals in the communities they serve drives everything they do.

With over 40 branch locations across multiple states, Pacific Premier Bank offers a full array of deposit & loan products, services for commercial businesses, nonprofit organizations, and consumers. They specialize in servicing small and middle-market businesses and professionals who need a broad range of loan, deposit, and treasury management products.

VIEW WEBSITE

TENANT PROFILES

OWNERSHIP NASDAQ: WING

YEARS IN BUSINESS

36 years

MARKET CAP

$2.27 Billion

REVENUE 2017

$1.3 Billion

HEADQUARTERS Richardson, TX

CREDIT RATING BBB

WINGSTOPWingstop Inc. is a publicly-traded (Nasdaq: WING) chain of nostalgic, aviation themed restaurants specializing in chicken wings. Wingstop® is the largest fast casual chicken wings-focused restaurant chain in the world. Today there are more than 1,100 franchise locations and 26 company-operated restaurants across the globe with system-wide sale of nearly $1.3 billion.

In 1997 Wingstop® began offering franchises and today they are one of the fastest-growing concepts in the country by attracting top entrepreneurs and operators. Launched in 2005, Far West Restaurant Group (lease guarantor) has grown to become of the of the largest operators of Wingstop franchises. The company and its affiliated entities run 31 restaurants in Southern California, from Burbank to San Clemente, and 3 in Las Vegas. In addition, a sister company operates three Dunkin’ Donuts® franchises in Southern California.

VIEW WEBSITE


SITE PLAN

MEDICAL OFFICE (NAP)

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02FINANCIAL OVERVIEW

INVESTMENT SUMMARY

RENT ROLL

LEASE ABSTRACTS

LOS ANGELES

CORONA

ORANGE

FULLERTON

DOWNEYINGLEWOOD

SANTA MONICA

BURBANK

SAN FERNANDO

PASADENA

LONG BEACH

TORRANCECERRITOS

ANAHEIM

SANTA ANA

LAKE FOREST

RANCHOPALOS

VERDES

MANHATTANBEACH

Hermosa

Beach

EL SEGUNDO

Laguna Beach

Dana Point

LAGUNA NIGUEL

TEMECULA

SAN CLEMENTE

IRVINE

NEWPORTBEACH

Terminal

Island

RIVERSIDE

SAN BERNARDINOFONTANA

ONTARIO

CHINO

POMONA REDLANDS

MORENO VALLEY

EL CERRITO

ARCILLA

MEAD VALLEY

WOODCRESTMarch Air

Reserve Base

Mt Baldy

Running

Springs

Crestline Big Bear Lake

LAKEVIEW

NUEVO

WINCHESTER

SAN JACINTO

BEAUMONT

CHERRY VALLEY

CALIMESA

BLOOMINGTON

MENIFEECanyon Lake

MURRIETA

Lake Elsinore

Lakeland

Village

DELUZ

RAINBOW

PERRIS

SILVERADO

Brea

CITY OFINDUSTRY

HEMET

YUCAIPAOAK GLEN

BEVERLY HILLS

AZUSA

COVINA

LA CAÑADAFLINTRIDGE

SHERMAN OAKS

HOLLYWOOD

Chino Hills

State Park

San Bernardino

National Forest

PACIFIC OCEAN

MALIBU

THOUSAND OAKS

SIMI VALLEY

MOORPARK

CALABASAS

Topanga

State Park

Canoga Park

Redondo

BeachCARSON

COMPTON

LAKEWOOD

SAN PEDRO

FINANCIAL OVERVIEW

Monthly Rent $16,457

Annual Rent $197,484

Annual Rent PSF $47.70

ESTIMATED OPERATING INFORMATION

Property Taxes Tenant Responsible

Insurance Tenant Responsible

CAM Tenant Responsible

Management 10% of CAM

ESTIMATED OPERATING INFORMATION

Scheduled Rent $197,484

Plus Recapture NNN

Effective Gross Income $197,484

Less Expenses NNN

Net Operating Income $197,484

FINANCIAL HIGHLIGHTS

INVESTMENT SUMMARY

$4,250,000

OFFERING PRICE

2

# OF TENANTS

4.65%

CAP RATE

2019

YEAR BUILT

SUBJECT PROPERTY

LAX

SNA

LGBDISNEYLAND

N

2401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS 9

Square Footage Rental Information Rent Increases Lease

Suite # Tenant Name Area Project % Base Rent/SF Total Rent Date Amount Options Start End

1 PACIFIC PREMIER BANK 2,700 SF 65% $10,665.00 $3.95/SF $10,665.00 2 (5 year) 10/1/2019* 9/31/2026

10/1/2026 $11,731.50 Option 1

10/1/2031 $12,904.65 Option 2

2 WINGSTOP 1,448 SF 35% $5,792.00 $4.00/SF $5,792.00 2 (5 year) 10/1/2019* 9/31/2029

10/1/2024 $6,371.20

10/1/2029 $7,008.32 Option 1

10/1/2031 $7,709.15 Option 2

Building Totals ±4,148 SF 100% $16.457.00 $16,457.00

RENT ROLL

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ELD

AV

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SOUTH MONTEBELLO

SUBJECT PROPERTY

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*Estimated Start Date


LEASE ABSTRACTS

PACIFIC PREMIER BANK

Lease Commencement 9/5/2018

Lease Expiration 9/30/2025

Primary Term 7 years

Options Two (2) Five (5) years

Base Rent Year $127,980.00

Option 1 $140,778.00

Option 2 $154,855.80

Property Tax NNN

Insurance NNN

Utilities NNN

CAM NNN

Management Fee 10% of CAM

WINGSTOP

Lease Commencement 4/5/2019

Lease Expiration 4/30/2029

Primary Term 10 years

Options Two (2) Five (5) years

Base Rent Year 1–5 $69,504.00

Year 6–10 $76,454.40

Option 1 $84,099.84

Option 2 $92,512.72

Property Tax NNN

Insurance NNN

Utilities NNN

CAM NNN

Management Fee 10% of CAM

SUBJECT PROPERTY

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03AREA

OVERVIEWDEMOGRAPHICS

LOCAL AMENITIES

LOS ANGELES COUNTY OVERVIEW

DEMOGRAPHICS

1 Mile 3 Miles 5 Miles

INCOME

2018 Median Household Income $43,884 $52,358 $50,997

2018 Average Household Income $59,440 $69,588 $67,957

2018 Per Capita Income $17,278 $19,813 $18,529

POPULATION

2018 Estimated Total Population 34,108 211,791 726,972

2023 Forecasted Total Population 34,735 215,662 739,634

2010 Census Total Population 32,936 204,975 705,321

Population Growth 2019 to 2024 3.56% 3.33% 3.07%

Forecast Population Growth 1.84% 1.83% 1.74%

HOUSEHOLDS

2018 Estimated Total Households 9,801 59,581 195,364

2023 Forecasted Total Households 9,929 60,364 197,733

2010 Census Total Households 9,553 58,154 191,290

Household Growth 2010 to 2019 2.60% 2.45% 2.13%

Forecast HH Growth 2019–2024 1.31% 1.31% 1.21%

98%

EMPLOYED

$67,957

AVERAGE HH INCOME

63,335

MONTEBELLO POPULATION

ROSEMEAD

ALHAMBRA

MONTEREY PARK

EAST LOS ANGELES

MONTEBELLO

SOUTH GATE

PICO RIVERA

1 Mile

3 Miles

5 Miles

SUBJECT PROPERTY


LOCAL AMENITIES

COMMERCE CENTER

SHOPPING PLAZA

ATLANTIC BLVD & WHITTIER BLVD

SUBJECT PROPERTY

MART OF MONTEBELLO

MONTEBELLO PLAZA

WHITTIER BLVD

WHITTIER BLVD

BEVERLY BLVD

BEVERLY BLVD

ATLANTIC B

LVD

ATLANTIC B

LVD

WHITTIER BLVD

GA

RF

IEL

D A

VE

N


LOS ANGELES

CORONA

ORANGE

FULLERTON

DOWNEYINGLEWOOD

SANTA MONICA

BURBANK

SAN FERNANDO

PASADENA

LONG BEACH

TORRANCECERRITOS

ANAHEIM

SANTA ANA

LAKE FOREST

RANCHOPALOS

VERDES

MANHATTANBEACH

Hermosa

Beach

EL SEGUNDO

Laguna Beach

Dana Point

LAGUNA NIGUEL

TEMECULA

SAN CLEMENTE

IRVINE

NEWPORTBEACH

Terminal

Island

RIVERSIDE

SAN BERNARDINOFONTANA

ONTARIO

CHINO

POMONA REDLANDS

MORENO VALLEY

EL CERRITO

ARCILLA

MEAD VALLEY

WOODCRESTMarch Air

Reserve Base

Mt Baldy

Running

Springs

Crestline Big Bear Lake

LAKEVIEW

NUEVO

WINCHESTER

SAN JACINTO

BEAUMONT

CHERRY VALLEY

CALIMESA

BLOOMINGTON

MENIFEECanyon Lake

MURRIETA

Lake Elsinore

Lakeland

Village

DELUZ

RAINBOW

PERRIS

SILVERADO

Brea

CITY OFINDUSTRY

HEMET

YUCAIPAOAK GLEN

BEVERLY HILLS

AZUSA

COVINA

LA CAÑADAFLINTRIDGE

SHERMAN OAKS

HOLLYWOOD

Chino Hills

State Park

San Bernardino

National Forest

PACIFIC OCEAN

MALIBU

THOUSAND OAKS

SIMI VALLEY

MOORPARK

CALABASAS

Topanga

State Park

Canoga Park

Redondo

BeachCARSON

COMPTON

LAKEWOOD

SAN PEDRO

SUBJECT PROPERTY

N

LAX

SNA

LGBDISNEYLAND

PORTS OF LOS ANGELES AND LONG BEACH


LOS ANGELES COUNTY OVERVIEW

One of the original counties of California, created at the time of statehood in 1850, Los Angeles County has evolved from its agricultural beginnings into an economic behemoth and bellwether for the rest of the country.

The county encompasses 4,751 square miles of Southern California bordering 70 miles of coast on the Pacific Ocean and contains mountain ranges, valleys, forests, islands, lakes, rivers, and desert.

It is the most populous county in the United States and the third-largest metropolitan economy in the world, with a nominal GDP of over $700 billion.

While L.A. County is the center-piece, the larger L.A. Basin metropolitan market area also includes Orange County, and lies adjacent to the Inland Empire to the east, San Diego County to the south, and Ventura County to the north. Each of these other market areas help spur demand and growth in L.A. County, with a diversified set of dynamic industry clusters and employment drivers. Startups, entrepreneurial decision-makers, and small regional divisions of larger companies favor L.A. County for its skilled workforce, housing options, and favorable weather.

TRADE AND LOGISTICS

The Ports of Los Angeles and Long Beach combine to make L.A.’s sea ports complex the largest in the Western Hemisphere, handling over 40% of all inbound containers for the entire United States.

MANUFACTURING

Los Angeles County is the largest manufacturing center in the U.S., with more manufacturing jobs (503,000) than the state of Michigan.

ENTERTAINMENT AND INFOTECH

With many major studios like Walt Disney, 20th Century Fox, and Paramount Pictures, and a modern, internet-based media industry, Los Angeles County is the undisputed “Entertainment Capital of the World.”


LARGEST COUNTY ECONOMY IN THE U.S.

If Los Angeles County were a nation, its economy would be the 19th largest in the world. It is home to more than 244,000 businesses, with more minority- and women-owned businesses than any other in the nation. It is also home to dozens of the largest and most successful companies in the world including The Walt Disney Company, MGM, Mattel, AECOM and Avery Dennison. It is the nation’s top international trade center and manufacturing center. Los Angeles County’s 37 administrative departments and $24.2 billion budget provide extensive business opportunities to the private sector, in contracts for both goods and services.

HUGE CONSUMER MARKET

Home to more than one-quarter of California residents, Los Angeles County has the largest population of any county in the nation, and exceeded by only eight states. More than 1 million of the 10.4 million residents live in unincorporated areas, whose municipal services are provided by the county. The other 9.3 million live in 88 cities, located throughout a 4,084-square-mile area. It is one of the most ethnically diverse counties in the U.S., with more than 140 cultures and 224 languages represented in different neighborhoods.

TOP LOS ANGELES AREA COMPANIESLOS ANGELES AREA

$700 BILLION NOMINAL GDP

10.4 MILLION RESIDENTS

#1 CUSTOMS DISTRICT IN THE US

4.7% UNEMPLOYMENT RATE

(NOV 2018)

3RD MOST ACTIVE CARGO AIRPORTIN THE US (LAX)

2 LARGEST SEAPORTS IN AMERICA

ONE OF THE MOST ETHNICALLY DIVERSE COUNTIES IN THE U.S.

2.2% GDP GROWTH FORECASTFOR 2019


KIDDER.COM

PETER BEAUCHAMP


EXCLUSIVELY REPRESENTED BY

FOUY LY


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