BROCHURE MASTER BARSTOW .cvx

FOR SALE - 328,283 SF RETAIL CENTER - $54.83 PSF!
Located at Lenwood Road and the 15 Freeway in Barstow California – a Major Shopping Location!
We have an exclusive listing to sell the Barstow Factory Outlets – a fully built, added value retail center
located midway between Los Angeles and Las Vegas. Last year 10.4 million visitors drove to Las Vegas
using the 15 Freeway which is adjacent to this property. Lenwood (Barstow) is a natural stop for Vegas
travelers and every day 20,000 cars exit the Freeway at Lenwood Road to rest, have lunch and many
will shop at an existing, highly successful retail center. Because of this success, we believe the
Barstow Factory Outlet can be a very profitable acquisition for your business.
The former Tanger Outlet (renamed to The Outlets at Barstow) located next door to our Property, is
one of the best performing centers in the country and it sold last October 2015 for $106.7 Million
($623 PSF). The sales volume of the Tanger Outlet is $803 per square foot! Because of this high sales
volume and the recent high sales price of the Tanger Outlet, we believe there is a demand for many
additional rental units and the Barstow Factory Outlet, at its low price, should be a great investment
success!
The Barstow Outlet is built with 93 stores that total 328,283 sf of rentable space that is situated on a
48.8-acre site. The stores are substantially vacant and the center needs some updating and releasing
at higher rents.
The owner wants to sell and this property has the potential to provide very high profits at a low
entry price. Consider all re-development alternatives, including a two phase development:
initially upgrade one half of the existing space at a rent substantially lower that the adjacent
property. The remaining 50% could be upgraded after the first phase re-development has stabilized.
If the Casino locates next door, additional shoppers would be buying at the Outlet Mall.
There is a proposal to build an Indian Casino at the southeast corner of Lenwood and Mercantile and
if this proposal becomes a reality, the potential for additional business will soar. Call the City Manager
or the Director of Economic Development (Gaither Loewenstein @ 760-255-5177) for additional
information. Seller and Broker have no accurate information on the status of the casino and Buyer
should rely on its own independent investigation.
Thank you for your interest. Please review the following offering memorandum and call us if you have
interest.
Jim Kinetz
(323) 767-2114
and
Mike Smith
(323) 767-2109
Barstow
Factory
Outlets
328,283 sq ft
48.8 ac
2552 Mercantile Way
Barstow, CA
Barstow
Outlet
Stores
Lenwood Road
Restaurants
Fast Food
Hotels
Barstow
Outlet
Stores
A good reason to buy this property...
The return can be enormous!
1. The competing outlet located next door just sold for $622 per sq ft and has
an annual sales volume of $803 per sq ft.
2. Buy the Barstow Factory Outlets, finish the rehab and lease-up for a
fraction of $622 per sq ft. At this low cost base - the Barstow Factory
Outlets will be strong competition to the neighbor.
3. The lower cost base of the Barstow Factory Outlets will attract tenants and
should yield a very high return to the buyer.
Sale Comp
Jim Kinetz
Mike Smith
Principal
lic # 00788762
(323) 767-2114
[email protected]
Principal
lic # 00978736
(323) 767-2109
[email protected]
Contents
Executive Summary
3
Locator Map
4
Area Overview
Amenities Adjacent to Outlet
5
5.1
Close Up Aerial
6
Profit Potential of This Property
7
Property Specifications
8
Assessor Map
9
Zoning Map
10
Operating Statement
11
Rent Roll
12
Layout of Tenant Spaces
13
Sale Comparables
14
History of the Barstow Factory Outlet
15 - 16
ALTA Survey
17
Disclaimer and Confidentiality Terms
18
Executive Summary
Land & Building - Factory Outlet
Building Rentable Sq Ft
Land Acres
FAR
Year Built
Price
Offering Price
Price psf of Building
Price psf of Land
Estimated Replacement Cost
Asking Price:
1/3rd
328,283
48.85
.15 : 1
1988 - 1993
$18 Million
$54.83
$8.46
$59 Million
$182 psf building
Replacement Cost
Sale Comparable Values
Building Sales - 2015 (according to the Orange County Business Journal)
Tanger Outlet Building sf
Land ac
Date Sold
Sale Price
Price psf
Annual Sales at Outlet
171,300
41
Oct 2015
$106,700,000
$623
$803
Land Sales - 2015
(1) A one acre restaurant site located
on the main access street to other
operating restaurants. Utilities are
either on site or to property line.
(2) Unimproved 1 acre site of vacant
desert land (ie sand & gravel) located
adjacent to existing development.
Site has street frontage and utilities
in street
Unimproved land, no road or utilities
nearby.
$16 to $24 psf
$6.00 psf
est $3.50 psf for 48 ac
$0.50 to $0.75 psf
Adjacent Synergies
Several restaurants and hotels
Proposed Indian Casino - Speculative Development that Seller is
Not Representing as a Project that will be Developed!
This development is not yet approved. Call the Barstow City Manager
or the Director of Economic Development (Gaither Loewenstein at
760-255-5177) for the Status and potential economic benefit to the
area. We make no representations.
Customer Base (Shoppers)
Las Vegas Traffic
Daily traffic on 15 Freeway
Daily cars taking the Lenwood Exit
Annual Visitors to Las Vegas using
the 15 Freeway
Approximate Spending in Vegas on Gifts,
Clothes, Accessories etc.
(possible outlet customers)
58,000
20,000
10.4 Million
$1.13 Billion
City of Barstow
Population Greater Barstow Area (15 Mi Radius)
36,000
Median HH Income
$39,385
Average HH Income
$50,336
Barstow will contribute to the sales of the outlet, but the
Las Vegas bound visitors from Southern California
will be the main source of buying.
Barstow
Area Amenities
Outlet
Several Restaurants and two Hotels
Stores
Jack in the Box
LAS VEGAS
Locator Map
15
15
BARSTOW
Barstow Factory Outlet
15
LOS
ANGELES
4
Sales Comp:
Tanger Outlet
171,300 SF with 40 Stores on 41 acres
Sold Oct 2015 for $623 psf
(total price $106.7 Million)
One of the best performing outlets
in the nation - with a sales volume
$803 psf!
Estimated NOI
$35 psf / yr
Real Capital Analytics reported the sale was
at a CAP Rate of 5.6%. Assuming the CAP
was 5.6% - it means the NOI was aout $3.00
psf.
Annual Outlet Sales
$138 Million
$803 psf
Close-up Aerial
6
What is the Profit Potential of the
Barstow Factory Outlet?
For Sale
Barstow
Factory
Outlets
15
an added value development
with high profit potential
Asking: $54.83 psf
Property Description
The Barstow Factory Outlets is a 328,283 square foot factory outlet with 98 units, located at 2552
attracted over 2 Million shoppers because it was located at a natural rest stop for the 58 thousand
cars that pass by the Outlet on the 15 Freeway. At that time, there was no vacancy and it was difficult
to find a spot to park. I know this because on our many trips to Las Vegas during the 1990's my wife
and I always stopped to shop at the Barstow Factory Outlet - it was a good time to take a break from
the long drive and we always enjoyed shopping at this outlet. The recession slammed Barstow and
Las Vegas hard, however, the economy has completely recovered and the 15 Freeway traffic to Las
Vegas now exceeds its pre-recession levels and the Barstow Outlet should again be a fully leased
project.
The outlet was built in 1988 - 1993 and the buildings are connected by decorative brick and concrete
walkways with a substantial amount of landscaping, fountains and driveways. There are reciprocal
access easements over the adjacent properties situated west of the Property and there is parking for
1,760 cars and 31 tour buses.
Why this Property is a Good Investment.
The Barstow Outlet is an added value opportunity that should be very profitable because the low
cost basis of this property would permit the buyer to attract new tenants by offering lower rents than
the fully occupied Tanger Outlet located next door. The offering price for this property is $18 Million
- or about 1/3rd the replacement cost.
COMP: Tanger Outlets
Sold Oct 2015,
$106.7 Million - $623 psf
Fully Occupied @ estimated
$35 psf/yr.
$803 psf
$138 Million/yr
Mercantile Way
Lenwood Rd
Estimated NOI:
Outlet Sales:
For Sale
The Tanger Outlet, located next to the Barstow Factory Outlet - Sold October 2015, for $623 per sq ft.
Tanger is one of the best performing outlets in the country with a sales volume of $803 psf and an
estimated annual NOI of $35 psf (assuming a 6% CAP). The high sales price and the sales volume of
Tanger implies the demand for outlet space in this area is extremely high and there is room for many
additional tenants at the Barstow Factory Outlet!
A Nevada government agency funded a study in 2015 that determined there were 10.4 Million
visitors that used the 15 Freeway to travel to Vegas and spend $1.13 Billion a year to purchase
products that could be acquired at an outlet. The daily traffic count on the 15 Freeway is 58,000 cars
of which 20,000 cars exit at the Lenwood off ramp, and are potential outlet shoppers.
Today, the Tanger Outlet (Outlets at Barstow) revenue is $138 Million and we believe the demand for
additional stores in the nearby Barstow Factory Outlet is high enough to fill the 328,283 square foot
building. The high rents and sales volume of the Tanger Outlet indicates that the
low purchase price of the Barstow Factory Outlet make this a great money maker.
Buyer to conduct its own financial assumptions. Seller and Broker do not represent this analysis can
be achieved.
After you purchase this property, perform re-facing, repair the parking lot and add new landscaping
and lease-up - and this property can be a very profitable investment.
7
8
Barstow Outlet
0428 - 211-26-0-0000
29.38 ac
0428 - 211-27-0-0000
19.47 ac
9
Barstow Factory Outlet
Zoned: Commercial (C)
Buyer should check with Barstow to verify that zoning has
10
Income Statement 2015
11
12
13
0428-171-65
9/30/2015
43,560 sf land
Earl Freddy Invest
$265,000
$6.08 psf land
0428-171-34
7/7/2014
1,060,250 sf land
Henry Lee
$825,000
$0.78 psf land
14
History of the Barstow Factory Outlet
15
The Barstow Factory Outlet, located halfway to Las Vegas was a
natural stop for travelers to Las Vegas to have lunch and spend a
couple of hours shopping at the outlet.
In the 1990's, this mall was the place to stop to get great shopping
deals. At that time, 2 Million shoppers from Southern California
and Asia spent money at this mall. Today we estimate 2.3 Million
Shoppers stop at the adjacent outlet - all you need to do is to
upgrade the Barstow Outlet and lease the units.
In the 1990's, the parking lot was full and buses brought groups
of shoppers to the outlet and cars would circle searching for a
spot to park. There were 1,760 parking spots provided ( 5.4:1)
and spots were still hard to find.
This was a very crowded development, but it was a great place to
shop! I know this because I (really my wife) were frequent
shoppers at this outlet during the 1990's.
16
Representation, Disclaimer, Confidentiality and Offering Process
Exclusive Representation
The property owner (“Seller”) has retained Lee & Associates – Commerce Inc (“Broker”) to exclusively market
this property for sale. All questions and tour requests will be handled by Lee & Associates – agents Mike
Smith at 323-209-2109, and Jim Kinetz at 323-767-2114 or 310-809-9493.
Disclaimer
This Investment Offering Memorandum (“Memorandum”) has been prepared by Lee & Associates-Commerce
Inc. for use by qualified prospects to determine if they have an interest in further investigation and possibly
making an offer to purchase. The value of this transaction to you depends on tax and other factors which
should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful,
independent investigation of the property to determine to your satisfaction the suitability of the property for
your needs.
All financial projections and information are provided for general reference purposes only and are based on
assumptions relating to the general economy, market conditions, competition and other factors beyond the
control of the Seller and Broker. Therefore, all projections, assumptions and other information provided and
made herein are subject to material variation. All references to acreages, square footages, and other
measurements are approximations and for accuracy, buyer must independently verify important
measurements.
Additional information and an opportunity to inspect the Property will be made available to interested and
qualified prospective purchasers. In this Memorandum, certain documents, including leases and other
materials, are described in summary form and Broker does not represent that these summaries are complete
nor necessarily accurate descriptions of the full agreements referenced. Interested parties will receive copies
of the documents that Seller has in its possession, and Buyer is expected to review all such summaries and
other documents of whatever nature independently and not rely on the contents of this Memorandum in any
manner.
Neither the Seller or Broker, nor any of their respective directors, officers, Affiliates or representatives make
any representation or warranty, expressed or implied, as to the accuracy or completeness of this
Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your
receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and
inspections of the Property in evaluating a possible purchase of the real property.
Confidentiality
This Investment Offering Memorandum, except for the information that is a matter of public record are of a
confidential nature. By accepting the Investment Offering Memorandum, you agree to hold and treat it in the
strictest confidence, that you will not duplicate it, that you will not disclose the Investment Offering
Memorandum or any of its contents to any other entity except to outside advisors that are retained to advise
you on this possible purchase.
Offer Requirements
Offers should be sent to the attention of Jim Kinetz or Mike Smith via email ([email protected] and
[email protected] ) - OR by mail to Jim Kinetz or Mike Smith at the following:
Mike Smith
Principal
Lee & Associates – Commerce Inc.
500 Citadel Drive, Suite 140
Commerce, CA 90040
Jim Kinetz
Principal
Lee & Associates – Commerce Inc.
500 Citadel Drive, Suite 140
Commerce, CA 90040
Representation, Disclaimer, Confidentiality and Offering Process
Offers should include
• Purchase price including terms and contingencies
• Timing for due diligence period and closing date
• All deposits, including the amount that is non-refundable
• Source of the cash and debt for the acquisition
• Financial capability of the purchaser
• Buyers are encouraged to tour the Properties
If you would like to set up a tour of the Properties, please contact Jim Kinetz or Mike Smith.
PLEASE NOTE THE PROPERTY IS BEING SOLD “As-Is, Where-Is” with no express representations or
warranties. Seller, with its sole and absolute discretion, reserves the right to remove the Property from the
market. Seller expressly reserves the right, in its sole and absolute discretion, to reject any and all proposals or
expressions of interest in the Property, to terminate discussions with any party at any time or to extend the
deadlines set forth in the time schedule. This Memorandum is subject to prior placement and withdrawal,
cancellation or modification without notice.
Communication
All communications, inquiries and requests should be addressed to the Lee & Associates Team. For more
information, please visit our website at https://www.teamlacommercial.com