offering memorandum - loopnet...adrenaline martial arts & fitness is the largest training...

780 Inland Center Drive, San Bernardino, CA 92408

Offered At: $2,575,000

OFFERINGMEMORANDUM

7 8 0 I N L A N D C E N T E R D R I V E

9471 Haven Avenue, Suite 110 | Rancho Cucamonga, CA 91730T 909.230.4500 | C [email protected] #01970414

Retail SpecialistMIKE LIN

BROKER CO-OPERATIONBROKER CO-OPERATION

Progressive Real Estate Partners recognizes and appreciates the importance of co-operating brokers in the industry that actively representprospective buyers. It is our goal to work closely with these brokers and share our fee with them, although this fee is not always shared equallydue to certain circumstances. We are pleased inform buyer’s broker of the co-operating fee for this listing or any of our other listings uponrequest. It is our policy to NOT share our fee with buyers/principals that are licensed brokers as our experience has been that we do just asmuch if not more work in these situations and then get paid substantially less as a result.

229471 Haven Avenue Suite 110 • Rancho Cucamonga, CA 91730 • 909.230.4500 • www.progressiverep.com

PRESENTED BYPRESENTED BY

PROPERTY HIGHLIGHTSPROPERTY HIGHLIGHTS• Located directly across the street from the Inland Center Mall, the premier shopping

destination in the area.• Offered well below replacement cost - less than $80/SF!• Value-add opportunity: Lease the space that will be vacated by Kelly Paper for

immediate upside• Easy freeway access - located at the Inland Center Drive ramp to I-215• Adrenaline Martial Arts recently signed a new lease at this location and has been in

operation for 10 years• Guadalajara Furniture is a local chain of furniture stores with four locations

throughout the Inland Empire, and has been in business for 20 years. This is a highperforming location for them

• Extremely low NNN expenses of $0.15/sf/mo

OFFERING SUMMARYOFFERING SUMMARY

Sale Price: $2,575,000

Proforma Net Operating Income: $217,552

Proforma Cap Rate: 8.45%

Current Net Operating Income: $119,313

Current Cap Rate: 4.6%

Asking Price/SF: $76.39

Building Size/Total Land Area: 33,708 SF / 1.38 Acres

Building Occupancy: 68%


INVESTMENT SUMMARYINVESTMENT SUMMARY | 780 Inland Center Drive, San Bernardino, CA 92408


REGIONAL MAPREGIONAL MAP | 780 Inland Center Drive, San Bernardino, CA 92408


RETAILER MAPRETAILER MAP | 780 Inland Center Drive, San Bernardino, CA 92408


SITE PLANSITE PLAN | 780 Inland Center Drive, San Bernardino, CA 92408

UNIT TENANTLEASE

TYPESF %

ORIGINAL

STARTEND RENT/MO

RENT/SF/

MO

% OF

INCOMEANNUAL RENT INCREASES OPTIONS

790-794Vacant

(Proforma)NNN 10,926 32.4% $7,102 $0.65 34.8% $85,223

780A-BAdrenaline

Martial ArtsGross 12,982 38.5% 3/1/18 5/30/21 $7,789 $0.60 38.2% $93,470 3/1/20: $8,438.30 None

780CGuadalajara

FurnitureGross 9,800 29.1% 3/1/18 5/31/23 $5,500 $0.56 27.0% $66,000

3/1/19: $5,665.00

3/1/20: $5,834.95

3/1/21: $6,010.00

3/1/22: $6,190.30

One 5-year at Fair Market Value

ACTUAL OCCUPANCY 22,782 67.6% $13,289 $0.58 100.0% $159,470PROFORMA (FULL OCCUPANCY) 33,708 100% $20,391 $0.60 $244,693

Tenant Information Lease Term MiscellaneousRent Summary


RENT ROLLRENT ROLL | 780 Inland Center Drive, San Bernardino, CA 92408

Occupied Square Footage: 22,782 33,708

REVENUE CURRENT PROFORMA

Base Annual Rent: $159,470 $244,693

Expense Reimbursements: $0 $13,016Gross Operating Income: $159,470 $257,710

OPERATING EXPENSES CURRENT PROFORMA

Insurance $7,319 $7,319City of San Bernardino - Fire Service $519 $519City of San Bernardino - Water Service $572 $572Gardening Service $1,680 $1,680Phone line for alarm system $1,036 $1,036Alarm System $1,532 $1,532

Property Taxes* $27,500 $27,500Total: $40,157 $40,157

NNN/SF/mo: $0.10 NNN/SF/mo: $0.10

NET OPERATING INCOME: $119,313 $217,552*Property Taxes adjusted for new owner at est 1.1% of purchase price


INCOME & EXPENSESINCOME & EXPENSES | 780 Inland Center Drive, San Bernardino, CA 92408


INLAND CENTER MALLINLAND CENTER MALLThe Inland Center is an enclosed regional shopping destination featuring popularbrands. The Center is conveniently located next to the I-215 freeway and is in theheart of the Inland Empire, in San Bernardino. In 1966, Inland Center was builtby Homart Development Company, and was most recently renovated in 2000.

The Mall has over 869,000 square feet of retail space. When the Inland Centeropened, it was built to house three anchor tenants, but amongst its continuinggrowth, the center had to make room for more tenants. 165,000 square feet wasadded to accommodate a fourth anchor tenant, Macy’s, which remains an anchortenant today.

The Mall is within one mile of the three bordering cities of Redlands, Colton, andLoma Linda. The Mall draws customers from Redlands, Rialto, Highland, andother nearby cities reaching a trade area of 880,726 people. As the Inland Empireregion continues to see high job growth, Inland Center anticipates continuedgrowth.

The Mall is a single level mall anchored by Macy’s, Sears, Forever 21, andJCPenney alongside over 100 specialty shops and services. Inland Center is hometo additional retailers such as Bed Bath & Beyond, Hollister, and Sephora.Though the main Mall only covers one floor, anchors such as Sears and Macy’shave two stories, and Forever 21 has three. Inland Center continues to grow asthey plan to welcome new tenants such as H&M and Burgerim in the near future.

INLAND CENTER MALLINLAND CENTER MALL | 780 Inland Center Drive, San Bernardino, CA 92408


Adrenaline Martial Arts & Fitness is the largest training facility in the Inland Empire. Adrenaline pride itself on having thebest trainers in the Inland Empire. It caters to clients of all ages and skill levels. With more than 25 classes taught per week,Adrenaline Martial Arts continually draws clients to its facility. Clients come from the surrounding cities Colton, Highland,Bloomington, Rialto, Grand Terrace, Loma Linda, Redlands, Fontana and Riverside.

Adrenaline Martial Arts also hosts MMA, Boxing, Wrestling, Jiu Jitsu Shows throughout the year. The company creates anenvironment that is friendly to families as well as individuals. It has a 4.5 rating from 259 loyal customers on Facebook.

Web site: http://www.adrenalinefc.com

Guadalajara Furniture seeks to offer premium furniture for the bedroom, living room, and dining room at reasonableprices. The company has been in business for over 20 years. With locations in San Bernardino, Montclair, Fontana,and Riverside, Guadalajara Furniture prides itself on providing the Inland Empire with the highest quality furniture.Guadalajara Furniture offers various styles and colors to meet the needs of a variety of customers, as well as providingoptions for kid’s rooms. Guadalajara Furniture prides itself on providing great customer service that helps customersfind the furniture that fits their needs.

Web site: https://www.guadalajarafurniture.com/

TENANT DESCRIPTIONSTENANT DESCRIPTIONS | 780 Inland Center Drive, San Bernardino, CA 92408


ADDITIONAL PHOTOSADDITIONAL PHOTOS | 780 Inland Center Drive, San Bernardino, CA 92408


CITY OF SAN BERNARDINOCITY OF SAN BERNARDINOThe City of San Bernardino serves as the county seat of San Bernardino County and has an estimated population of 216,100. San Bernardino is

the 17th-largest city in California, and the 100th-largest city in the United States.

California State University, San Bernardino (CSUSB) is a major university located in the northwestern part of the city, and has an enrollment ofover 20,000 students. Other attractions in San Bernardino include ASU Fox Theatre, the McDonald's Museum, which is located on the original siteof the world's f irst McDonald's, California Theatre, the San Bernardino Mountains, and San Manuel Amphitheater, the largest outdooramphitheater in the United States. In addition, the city is home to the Inland Empire 66ers baseball team, which plays its home games at SanManuel Stadium in downtown San Bernardino. Government, retail , and service industries dominate the economy of the city of San Bernardino.

From 1998 to 2004, San Bernardino’s economy grew by 26,217 jobs, a 37% increase, to 97,139. Government was both the largest and thefastest-growing employment sector, reaching close to 20,000 jobs in 2004. Other significant sectors were retail (16,000 jobs) and education(13,200 jobs). The city’s location close to the Cajon and San Gorgonio passes, and at the junctions of the I-10, I-215, and SR-210 freeways,positions it as an intermodal logistics hub. Large warehouses for Kohl’s, Mattel, Pep Boys, and Stater Bros. have been developed near the SanBernardino International Airport. Amazon opened its f irst distribution center in California in San Bernardino in 2012 and has since built a seconddistribution center in the city.

San Bernardino offers several parks and other recreation facil it ies. Perris Hil l Park is the largest park in the city. Other notable parks include theGlen Helen Regional Park, Blair Park, and Little Mountain. San Bernardino is primarily served by the San Bernardino City Unified School District,the eighth largest school district in California.

MARKETPLACE PROFILEMARKETPLACE PROFILE | 780 Inland Center Drive, San Bernardino, CA 92408


INLAND EMPIREINLAND EMPIREThe Inland Empire is comprised of San Bernardino & Riverside Counties and is currentlyhome to about 4.5M people with growth expected to exceed 5M people within the next 5years.

The Inland Empire has the 24th largest economy in the United States with $134B ofeconomic activity. Job growth is currently in excess of 3% per year making the region2nd in job growth only to the Silicon Valley region of California. Distributing &warehousing are major components of the Inland Empire’s growth as the Inland Empire isone of the largest industrial markets in the country with over 500M square feet ofindustrial buildings.

Employment continues to increase with the unemployment rate now below 6.5%. Leadingthe job growth is logistics, professional employment, health care, education and leisure &hospitality. The Inland Empire has averaged 50,000 new jobs in each of the past 3 yearsand now employs over 1.35M people. The result of this job & income growth is recordtaxable sales.

The region is also home to many top colleges and universities including The ClaremontColleges, University of California – Riverside, Cal Poly Pomona, University of Redlands,University of La Verne, California Baptist University, La Sierra University, Cal State SanBernardino, and numerous community colleges.

Home prices are a major competitive advantage of the region with the median homeprice at approximately $285,000 compared to Los Angeles County at $575,000 andOrange County at $655,000. Even the cost of housing in the high income areas of theInland Empire are moderate in comparison with median home prices as follows: ChinoHills ($587,000), Claremont ($628,000), Redlands ($351,300), Temecula ($398,200) andCorona ($439,000).

TRADE AREA OVERVIEWTRADE AREA OVERVIEW | 780 Inland Center Drive, San Bernardino, CA 92408


DEMOGRAPHICSDEMOGRAPHICS | 780 Inland Center Drive, San Bernardino, CA 92408

offering memorandum - loopnet...adrenaline martial arts & fitness is the largest training...

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