plaza - loopnetimages3.loopnet.com/d2/mofpuodhijtxeqw744s_birm3i6lmth8ykr7c… · pizza hut and...

G R O U P

BRANDON MICHAELS

Sepulveda plaza

8332 Sepulveda Boulevard, North Hills, CA 91343

1 2 3 4EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS FINANCIALS SALES COMPARABLES

BRANDON MICHAELSSenior Managing Director InvestmentsSenior Director, National Retail GroupTel: (818) [email protected]: CA #01434685www.BrandonMichaelsGroup.com

ARIA POURNAZARIANNational Retail GroupTel: (213) [email protected]: CA # 01918248

16830 Ventura Blvd. Suite 100, Encino, CA 91436www.marcusmillichap.com

INVESTMENT ADVISORS

3SEPULVEDA PLAZA | NORTH HILLS, CA2

The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively market for sale Sepulveda Plaza, a 13,135 SF multi-tenant strip ideally situated on 35,711 square feet of land zoned C2, in North Hills, CA.

Sepulveda Plaza is located just north of the NE signalized intersection of Sep-ulveda Boulevard and Roscoe Boulevard, one of the busiest intersections in Southern California with daily traffic counts averaging 80,000 vehicles.

Sepulveda Plaza offers the rare opportunity to acquire a value-add multi-tenant strip center in a prime east San Fernando Valley location. The subject property is currently 75% occupied. The diverse tenant mix of national and local tenants caters to the needs of the local residents. A majority of the tenants are on NNN leases, offering ease of management to a prospective purchaser. With an aver-age unit size of 772 square feet, this is an ideal unit size that is easily leasable and offers very low tenant improvements costs upon a re-lease. This ideal unit size allows the astute investor to maximize their rental income. Sepulveda Pla-za offers excellent surface parking with a total of 54 parking spaces. The park-ing ratio of 4.01 per 1,000 allows for a multitude of potential uses. In addition, 35,711 square feet of C2 zoned land offers long term development potential.

Sepulveda Plaza is well located within an extremely densely populated sub-market, with an immediate population of 750,000 people within a five mile radius. The average household income within a five mile radius is $71,098. With excellent visibility and frontage, this strong location benefits from significant daily foot and vehicle traffic, ease of ingress and egress, and solid visibility from Sepulveda Boulevard.

75% 4.83% 13,135 54 80,000OCCUPANCY CAP RATE BLDG SF PARKING SPACES VEHICLES AT THE

INTERSECTION

EXECUTIVE SUMMARY

A multi-tenant strip center ideally located on heavily trafficked Sepulveda Boulevard.


PROPERTY INFORMATION

ADDRESS 8332 Sepulveda Boulevard, North Hills, CA 91343

PROPERTY TYPE Retail

GROSS SQUARE FEET 13,135 SF

LOT SIZE 35,711 SF

APN 2654-026-106

ZONING LAC2

YEAR BUILT 2006

PARKING SPACES 52 spaces

PARKING RATIO 4.11: 1,000 SF

TYPE OF OWNERSHIP Fee Simple

FINANCIAL INFORMATION

ASKING PRICE $5,150,000

PRICE/SF $392.08

CURRENT CAP RATE 4.83%

PROFORMA CAP RATE 6.50%

OCCUPANCY 75%

PROPOSED FINANCING

LOAN AMOUNT $3,090,000 (65% LTV)

INTEREST RATE 4.50%

TERM 30 year amortization

PROPERTY OVERVIEWOne of the busiest intersections in Southern California with daily traffic counts of approximately 80,000 vehicles per day.


VALUE-ADD MULTI-TENANT STRIP CENTER• Unique opportunity to acquire a value-add 75% leased multi-

tenant strip center in a densely populated East San Fernando Valley location.

EXCELLENT PARKING • Approximately 54 parking spaces are available, a ratio of

4.11:1,000 SF.

HIGH TRAFFIC COUNTS• Sepulveda Plaza is located just north of the signalized intersec-

tion of Sepulveda Blvd. and Roscoe Blvd., one of the busiest inter-sections in Southern California. Approximately 80,000 vehicles pass through the intersection of Sepulveda Boulevard and Ros-coe Boulevard daily.

NATIONAL TENANTS• National tenants include Little Caesars, Herbalife, Opportun, and

Boost Mobile. Little Caesars is the third largest pizza chain in the United States and Boost Mobile is a subsidiary of Sprint, with over 23,000 stores. The synergistic mix of national and local ten-ants caters to the diverse needs of the surrounding population.

NEW CONSTRUCTION• Sepulveda Plaza was built in 2006.

EXCELLENT VISIBILITY • 164 feet of frontage on Sepulveda Boulevard

STRONG AND DENSE IMMEDIATE DEMOGRAPHICS• Over $71,000 average household income within a one mile radius

in an excellent San Fernando Valley location. Over 750,790 peo-ple within a five mile radius

EXCELLENT LOCATION• Ideally located just north of the NE signalized intersection of Sep-

ulveda Boulevard and Roscoe Boulevard. Within close proximity to the 405 San Diego Freeway.

HEAVY RETAIL AREA• Multiple national retailers in the immediate area including Auto-

zone, Domino’s Pizza, Jack in the Box, 7-Eleven, and more.

CHASE STREET

ROSCOE BOULEVARD

NORTH HILLS

SEPU

LVED

A BO

ULE

VARD

SAN

DIE

GO

FW

Y

TENANT ROSTER

Unit Tenant SFSPL-1 Oportun Inc. 1,330 SPL-3 Nail Shop 634 SPL-4 Vacant 634 SPL-5 Restaurant 634 SPL-6 Martial Arts Studio 634 SPL-7 Massage 842 SPL-8 Vacant 1,404 SPL-9 Herbalife 1,145 SPL-10 Vacant 607 SPL-11 Vacant 607 SPL-12 Pet Grooming 607 SPL-13 Cigarettes 4 Sale 607 SPL-14 Church 690 SPL-15 Cell Phone 690 SPL-16 Barbershop 690 SPL-17 Little Caesars 1,380

Total 13,135

INVESTMENT HIGHLIGHTS


National tenants include Little Caesars, Opportun, Herbalife, and Boost Mobile. Little Caesars is the third largest pizza chain in the United States and Boost Mo-bile is a subsidiary of Sprint, with over 23,000 stores.

SEPULVEDA PLAZA | NORTH HILLS, CA10 11

SEP

ULV

EDA

BO

ULE

VAR

D

ROSCOE BOULEVARD

SEP

ULV

EDA

BO

ULEVA

RD

Sepulveda plaza


POPULATION

750,790AVERAGE HOUSEHOLD

INCOME

$71,098

Within a 5 mile radius...

54 parking spacesParking ratio of 4.11: 1,000 SF


LOCATION


LOCATION

The site is located north of the northeast signalized intersection of Sepulveda Boule-vard and Roscoe Boulevard.

SQUARE FOOTAGES

The building square footage is 13,135 SF on a 35,711 SF lot.

FRONTAGE AND ACCESS

164 feet of frontage on Sepulveda Boulevard.

YEAR BUILT

2006

ZONING

LAC2

PARCEL NUMBER

2654-026-106

TRAFFIC COUNT

Roscoe Boulevard: 42,003 vehicles per daySepulveda Boulevard: 31,689 vehicles per dayTotal: 73,692 vehicles per day

PARKING

54 surface spaces are available. Parking ratio of 4.11/1,000 SF.

PROPERTY OVERVIEW MAJOR TENANTS

Oportun is a financial technology company founded in 2005 with the mission of providing affordable loans that help people with little or no credit history establish credit and build a better future.

TYPE PrivateFOUNDED 2005NO. OF LOCATIONS 245WEBSITE www.opportun.com

TYPE PrivateFOUNDED 1954NO. OF LOCATIONS 4,503WEBSITE www.littlecaesars.com

TYPE SubsidiaryFOUNDED 2000NO. OF LOCATIONS 23,016WEBSITE www.boostmobile.com

TYPE PublicFOUNDED 1980EMPLOYEES 7,800WEBSITE www.herbalife.com

Little Caesar Enterprises Inc. is the third-larg-est pizza chain in the United States, behind Pizza Hut and Domino's Pizza. It operates and franchises pizza restaurants in the United States and internationally. The company was founded in 1959 and is based in Detroit, Michi-gan. Little Caesar Enterprises, Inc. operates as a subsidiary of Ilitch Holdings, Inc

Boost Mobile is a wireless telecommunications carrier used by two independent networks in Australia and the U.S. Boost Mobile was founded in 2000 by Pete Bourke in Australia and New Zealand. Boost Mobile in the United States is owned and operated by Boost World-wide, Inc a Sprint Corporation subsidiary.

Herbalife International is a global multi-level marketing corporation that develops, markets and sells nutrition supplements, weight man-agement, sports nutrition and personal-care products. The company was founded by Mark Hughes in 1980, and it employs an estimated 7,800 people worldwide. Herbalife reported net sales of US$4.488 billion in 2016.


FINANCIALS

UNIT TENANT SF % LEASE START LEASE EXP OPTIONS RENT RENT/SFLEASE TYPE

PROFORMA $ PF $/SF

SPL-1 Oportun Inc. 1,330 10% 7/1/2016 6/30/2021 (2) 5-Year Options 10% bump $3,200 $2.41 NNN

SPL-3 Nail Shop 634 5% 1/1/2012 6/30/2018 - $1,250 $1.97 MG

SPL-4 Vacant 634 5% N/A N/A - - - NNN $1,426.50 $2.25

SPL-5 Restaurant 634 5% 5/1/2015 4/30/2020 3% Annual Increases $1,700 $2.68 NNN

SPL-6 Martial Arts Studio 634 5% 7/15/2015 7/14/2020 3% Annual Increases $1,294 $2.04 NNN

SPL-7 Massage 842 6% 8/1/2017 7/31/2018 - $2,947 $3.50 NNN

SPL-8 Vacant 1,404 11% N/A N/A - - - NNN $2,808 $2.00

SPL-9 Herbalife 1,145 9% 11/1/2012 3/31/2018 $2,500 $2.18 MG

SPL-10 Vacant 607 5% N/A N/A - - NNN $1,366 $2.25

SPL-11 Vacant 607 5% N/A N/A - - - MG $1,366 $2.25

SPL-12 Pet Grooming 607 5% 6/15/2016 6/14/2019 3% Annual Increases $1,306 $2.15 NNN

SPL-13 Cigarrettes 4 Sale 607 5% 7/1/2010 6/30/2020 3% Annual Increases $1,326 $2.18 NNN

SPL-14 Church 690 5% 8/1/2013 7/31/2018 - $1,373 $1.99 NNN

SPL-15 Cell Phone 690 5% 3/1/2013 MTM - $1,468 $2.13 MG

SPL-16 Barbershop 690 5% 5/15/2011 5/31/2018 - $1,550 $2.25 MG

SPL-17 Little Caesars 1,380 11% 9/1/2007 1/31/2023 (1) 5 Year Option, Begins 1/1/2018 $5,019 $3.64 NNN

Total 13,135 100% $24,933 $2.52 $6,966Occupied SF 9,883 75%Vacant SF 3,252 25%

RENT ROLL

INCOME AND EXPENSE CURRENT PROFORMA

Scheduled Lease Income: $299,196 $382,788

NNN Charges $52,707 $78,198

Effective Gross Income: $351,903 $460,986

Vacancy: (5%) - $23,049

Expenses: $102,960 $102,960

Net Operating Income: $248,943 $334,977

Loan Payment $206,103 $206,103

Pre-Tax Cash Flow $42,840 $128,874

Principal Reduction $67,053 $67,053

Total Return Before Taxes $109,893 $195,927

EXPENSES ANNUAL PER SF

Taxes: 1.25% $64,375 $4.90

Insurance $3,921 $0.30

Landscaping $5,000 $0.38

Pest $342 $0.03

Trash $3,947 $0.30

Electricity $3,226 $0.25

Management $8,976 $0.68

Water $2,888 $0.22

Repairs $10,285 $0.78

Total $102,960 $7.84/$0.65

ANNUALIZED OPERATING DATA

NNN LEASES

AVERAGE UNIT SIZE

51% NNN leases

Over 1,000 SF: 32%Under 1,000 SF: 68%68%

51%


ADDRESS 6800 Balboa Boulevard, Van Nuys

SALES PRICE $3,900,000.00 PRICE/SF $403.56 BLDG SF 9,664 LOT SF 18,661 CAP RATE 5.03%CLOSE OF ESCROW 3/30/2017

ADDRESS 18601 Sherman Way, Reseda

SALES PRICE $2,495,000.00 PRICE/SF $300.46 BLDG SF 8,304 LOT SF 17,298 CAP RATE 6.27%CLOSE OF ESCROW 8/16/2016

ADDRESS 15612-15624 Ventura Boulevard, Encino

SALES PRICE $4,145,015.00 PRICE/SF $293.62 BLDG SF 14,117 LOT SF 30,492 CAP RATE -CLOSE OF ESCROW 7/28/2017

1 2 3

6800 BALBOA BOULEVARD, VAN NUYS 18601 SHERMAN WAY, RESEDA 15612-15624 VENTURA BOULEVARD, ENCINO

SALES COMPARABLES

ADDRESS 8332 Sepulveda Boulevard, North Hills, CA 91343

SALES PRICE $5,300,000PRICE/SF $403.50BLDG SF 13,135 SFLOT SF 35,711 SFCAP RATE 6.18%CLOSE OF ESCROW n/a

1

2

3

SUBJECT PROPERTY

$403.56

$300.46 $293.62

$332.55

$-

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

$400.00

$450.00

6800 Balboa Boulevard 18601 Sherman Way 15612 VenturaBoulevard

Average

SALES COMPARABLES PRICE/SF


AREA OVERVIEW

DEMOGRAPHICS 1 Mile 3 Miles 5 Miles

2014 Population 55,367 321,243 750,790

2014 Households 14,405 93,262 233,837

2014 Average Household Size 3.82 3.40 3.15

2014 Daytime Population 14,074 84,794 230,944

2014 Owner Occupied Housing Units 21.99% 42.85% 45.34%

2014 Renter Occupied Housing Units 75.16% 54.14% 51.48%

2014 Vacant 2.85% 3.02% 3.18%

BREAKDOWN OF HOUSEHOLD INCOME

$ 0 - $14,999 17.6% 13.9% 12.9%

$ 15,000 - $24,999 19.0% 13.4% 12.3%

$ 25,000 - $34,999 14.2% 12.3% 11.5%

$ 35,000 - $49,999 18.0% 15.3% 14.7%

$ 50,000 - $74,999 15.0% 17.4% 17.3%

$ 75,000 - $99,999 7.6% 10.9% 11.6%

$100,000 - $124,999 4.3% 6.6% 7.6%

$125,000 - $149,999 1.6% 3.8% 4.2%

$150,000 - $199,999 1.2% 3.4% 4.0%

$200,000 - $249,999 0.6% 1.0% 1.4%

$250,000 + 1.0% 1.8% 2.4%

AVERAGE HOUSEHOLD INCOME

2014 Median Household Income $34,409 $44,565 $48,359

2014 Per Capita Income $12,633 $18,883 $22,289

2014 Average Household Income $48,066 $64,493 $71,098

NORTH HILLS, CA

North Hills is about a 5.41 square mile neighborhood in San Fernando Valley. North Hills is boredered by Northridge to the west, Panorama City to the east, Van Nuys to the south, and Granada Hills to the north. The main thoroughfares include Sepulveda Boulevard, Roscoe Boulevard, Hayvenhurst, Wood-ley and Haskell Avenue. North Hills has easy access to the rest of Los Angeles via the San Diego 405 Freeway. According to the LA Times, North Hills has a population of about 60,000 and a median household income of $52,456.

• The median age is 28, young for the city of Los Angeles and young for the country.

• 17.8% of residents 25 and older have a four-year degree, about average for the city of Los Angeles and about aver-age for the county

• $52,456 median household income (2008 dollars), about average for the city of Los Angeles and about average for the county

• Highly diverse for the city of Los Angeles and highly di-verse for the county

• Average household size of 3.4 people, high for the city of Los Angeles and high for the county

NORTH HILLS DEMOGRAPHICS

SAN FERNANDO VALLEY

Almost 2.5 million people reside in the San Fernando Valley, which includes the submarkets of Northridge-Northwest San Fernando Val-ley, Van Nuys-Northeast San Fernando Valley, Woodland Hills, Bur-bank-Glendale-Pasadena and Sherman Oaks-North Hollywood-En-cino. The area’s population is expected to increase by 1.9 percent through 2020, or by 47,400 new residents.

Known for its entertainment industry, the Valley boasts more than 100 soundstages. Entertainment giants calling the Valley home include Walt Disney Co., Universal Studios, Warner Brothers, DreamWorks and Paramount Ranch. The entertainment industry continues to set the area’s economic pulse. Local motion-picture and entertainment companies employ roughly 25,000 people.

While the Valley has grown into the world’s center for entertainment, aerospace giants Boeing and Northrop Grumman and 21st Century Insurance also generate numerous well-paying jobs. Healthcare is also a major source of employment with providers that include Kaiser Permanente and Providence Health & Services. As a result of its large concentration of high-salaries and successful companies, the area’s median household income of$61,600 per year has risen dramatically in recent years.

Although the median home prices dipped during the recession, af-fordability remains a challenge for much of the local population. High home prices keep the homeownership rate at 50 percent in the San Fernando Valley and provide a large rental base.


Services 47%

Retail Trade 17%

Manufacturing 9%

Finance, Insurance & Real Estate 8%

Wholesale Trade 5%

Public Administration 5%

Transportation, Communications 5%

Construction 5%

SFV SHARE OF TOTAL EMPLOYMENT

SAN FERNANDO VALLEY HIGHLIGHTS

� About 2.5 million residents in the San Fernando Valley

� Population growth projected of 45,000 new residents by 2019 in the San Fernando Valley

� Strong ties to the entertainment industry – Home of Walt Disney Company, Universal Studios, Warner Brothers, DreamWorks and Paramount Ranch

� Local motion picture and entertainment companies employ roughly 25,000 people

� Aerospace (Boeing & Northrop Grumman) Insurance (21st Century Insurance) and Healthcare (Kaiser Permanente and Providence Health & Services) industries also generate numerous well-paying jobs

� Substantial income growth since 2000

� Home ownership rate is near 50% and large rental base

SAN FERNANDO VALLEY MAJOR EMPLOYERS

LOS ANGELES COUNTY LOS ANGELES COUNTY MAJOR EMPLOYERS

LOS ANGELES COUNTY ECONOMY

Los Angeles County covers 4,752 square miles and includes the islands of San Clemente and Santa Catalina. It is bordered on the east by San Ber-nardino and Riverside counties, on the north by Kern and Ventura counties, on the west by the Pacific Ocean and on the south by Orange County. Near-ly every type of climate is represented in Los Angeles, ranging from desert and mountain to coastal. The Los Angeles coastline stretches along 81 miles of world-famous beaches. The Santa Monica and San Gabriel mountains are located in the county, with the highest point at Mount San Antonio reaching more than 10,000 feet.

Long recognized as the financial, commercial and industrial capital of Southern California, the sprawling Los Angeles metropolitan area is one of the nation’s leading urban-industrial hubs. There are 15 Fortune 500 compa-nies headquartered in the county. Tourism, trade, manufacturing, entertain-ment, healthcare and defense provide a foundation for the local economy.

Los Angeles is home to two of the busiest ports in the world: the Port of Los Angeles and the Port of Long Beach. The two ports generate more than $10 billion in U.S. Customs revenues and taxes. Together, the ports account for related employment for nearly l.3 million people in Southern California and receive more than 40 percent of all U.S. container traffic.

Aerospace is still a significant employment force. The metro’s aerospace employers, including Boeing, Northrop Grumman and Lockheed Martin, have benefited from new defense and homeland security-related contracts.

The motion picture/entertainment industry is one of the most high-profile sectors of the local economy. Los Angeles is known as the entertainment capital of the world, with most of the major motion-picture studios located in the county; much of the music recording and production industry is cen-tered is Los Angeles as well.

• Kaiser Permanente• Northrop Grumman

Corporation• The Boeing Company• Kroger Company• Cedars-Sinai Medical Center• University of Southern

California

• Target• Bank of America Corp.• The Home Depot • Providence Health & Services

AREA OVERVIEW


G R O U P

BRANDON MICHAELS

BRANDON MICHAELSSenior Managing Director InvestmentsSenior Director, National Retail GroupTel: (818) [email protected]: CA #01434685www.BrandonMichaelsGroup.com

ARIA POURNAZARIANNational Retail GroupTel: (213) [email protected]: CA # 01918248

plaza - loopnetimages3.loopnet.com/d2/mofpuodhijtxeqw744s_birm3i6lmth8ykr7c… · pizza hut and...

Documents