Brochure - Commercial Retail Associates

FOR SALE | NORTH POINTE SHOPPING CENTER | VISALIA, CA
Price: $12,275,000
CAP Rate: 7.25%
Property Features:
• Anchored by FoodMaxx, a subsidiary of Save Mart Supermarkets
• Well located to capture growing Northeast Visalia population
• Ideal 1031 Exchange Replacement Property or Portfolio Asset
• Potential to increase yield through leasing vacancies
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
Direct Line: 559/ 490.2500
[email protected]
[email protected]
[email protected]
Investment Summary
Page 2
EXECUTIVE SUMMARY
Commercial Retail Associates and Fortune Associates are pleased to have been selected as the
exclusive co-brokers for the sale of the North Pointe Shopping Center, located at the northeast corner
of Ben Maddox Way and Houston Avenue in Visalia, California. The approximately 76,062 square foot
neighborhood shopping center is anchored by a 49,950 square foot Food Maxx grocery store. The subject
property is located in a growing trade area with an existing population of over 82,000 within a three mile
radius. This offering presents an investor with an opportunity to acquire a pride of ownership grocery
anchored neighborhood shopping center with a seasoned tenant lineup.
PROPERTY HIGHLIGHTS
•
Good frontage, visibility and access to both Ben Maddox Way and Houston Avenue, which carry over 30,000 vehicles per day
•
Anchored by Food Maxx, a subsidiary of Save Mart Supermarkets which operates 230+ stores in Central and Northern California and is the leading grocer in the Central Valley
•
Long-time shop tenants in the center including Me-N-Ed’s Pizza Parlor, Rent-A-Center, Advance America, Sunland Insurance, Laundry Day, Money Mart and Family Nutrition provide the trade area with “daily needs” goods and services
•
Located in a high growth area with 40% population growth in Visalia since 2000 and an additional
2,987 residential lots currently in various stages of subdivision or development
•
Neighboring national tenants at the intersection include O’Reilly Auto Parts, Subway, Domino’s Pizza, Texaco and Valero
•
At the list price, North Pointe Shopping Center presents an opportunity to acquire a neighborhood
shopping center at a significant discount to replacement cost estimated to be well over $200/SF inclusive of land, sitework, fees, and building costs
•
North Pointe Shopping Center is 92.6% leased to twelve tenants with staggered lease expirations
•
Opportunity to grow NOI by leasing up the vacant 5,596 SF and by reducing the unrecoverable expenses (current management fees of $54k/yr are not fully recovered, thus reducing NOI)
INVESTMENT SUMMARY
Address:1404-1500 Ben Maddox Way
Visalia, California 93292
APN:098-200-066
Land Area:
6.42 ± Acres
Total GLA:
76,062 ± Square Feet
Year Built:
1993
Occupancy:92.6%
Proforma Net Operating Income: $889,983
CAP Rate:
7.25%
Price:$12,275,000
Price/ SF:$161.38
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Income and Expenses
Page 3
Current Operating Expenses
Proforma Income & Expenses:
Taxes
$ 73,980
Insurance
$ 21,291
C.A.M.
$ 117,777
Management Fee
$ 54,158
Total
$ 267,206
Scheduled Base Rent
Price:
$12,275,000
CAP Rate: 7.25%
Proforma Base Rent on Vacancies*
Expense Reimbursements
Gross Operating Income
$
$ 185,966
$ 1,178,730
<$
Net Operating Income
87,295
5% Vacancy Factor (Excluding FM)
Operating Expenses
$ 905,469
<$
21,541 > 267,206 >
$ 889,983
* 5,596 SF of current vacancies at proforma rents stated on page 4
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Rent Roll
Page 4
ADDRESS
TENANT
SQ. FT.
RENT/SF/MO.
MONTHLY RENT
LEASE START** INCREASE DATE
INCREASE AMT. OPTIONS
ADMIN FEE
1532
1540
1542
Me-N-Ed’s Pizzeria
Cash-N-Dash (Money Mart)
Laundry Day
2,208
$1.60
$3,532.80
4/1/2004
NONE
NONE
NONE
10% CAMTI
2,136
$1.25
$2,670.00
2/1/2006
2/1/2015
$2,776.80
2@5yr. - FMV 10% CAMTI
1,800
$1.35
$2,430.00
8/1/2003
8/1/2015
8/1/2017
$2,520.00
$2,610.00
1@5yr. - FMV 10% CAMTI
1550
49,950
$0.94
$46,828.13
6/23/1993
6/23/2018
6/23/2023
$49,950.00
$50,990.63
2@5yr.
1424
SaveMart Supermarkets
(FoodMaxx)
PhoKing Restaurant
2,160
$1.20
$2,592.00
8/5/2014
8/1/2016
8/1/2018
$2,700.00
$2,808,00
1@5yr. - FMV 10% CAMTI
1426
1432
1436
Vacant
Vacant
Advance America
1,296
$1.35
$1,749.60
2,800
$1.25
$3,500.00
1,200
$1.50
$1,800.00
11/1/2003
NONE
NONE
1@3yr. - FMV 10% CAMTI
1438
1440
1446
1404
Bargain Cigarette & Pipe
Sunland Insurance Services
Rent-A-Center
Good Teeth Dental
1,440
$1.55
$2,232.00
8/1/2005
NONE
NONE
2@5yr. - FMV 10% CAMTI
1,224
$1.40
$1,713.60
5/1/2007
NONE
NONE
1@5yr. - FMV 10% CAMTI
3,704
$1.25
$4,630.00
8/2/1994
NONE
NONE
1@5yr. - FMV 10% CAMTI
2,048
$1.55
$3,174.40
5/1/2010
5/1/2014
5/1/2016
5/1/2018
$3,276.80
$3,379.20
$3,481.60
1@5yr.
1406
1408
1410
Vacant
Liberty Tax*
Family Nutrition Center
TOTAL
1,500
$1.35
$2,025.00
1,000
$1.25
$1,250.00
2/1/2011
NONE
NONE
2@2yr. - FMV 10% CAMTI
1,596
$1.70
$2,713.20
7/1/2008
Annually in Options 2.5%
76,062 $1.09
2@5yr.
4% CAM
10% CAMTI
10% CAMTI
$82,840.73
* Liberty Tax has been granted abated minimum rent the months of June 2015 and June 2016
** Lease expiration dates will be provided to principals after receiving executed Confidentiality Agreement
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Notable Tenant Profiles
Page 5
FOODMAXX, A SUBSIDIARY OF SAVE MART SUPERMARTS
As of December 2013, Forbes listed Save Mart Supermarkets as the 87th largest private company in America with revenue of $4.6 billion and 19,200 employees. Save Mart opened its first store in Modesto, California in January
1952, and now operates grocery stores located primarily in California’s Central Valley and the San Francisco Bay Area. Its supermarkets and warehouse stores operate under the Save Mart Supermarkets, S-Mart, Lucky, and FoodMaxx banners. Of the 230+ company stores, approximately 50 stores are operated as low-price warehouse format FoodMaxx stores. While the other conventional grocery store banners have seen store contraction in recent years,
the FoodMaxx concept has been the growth vehicle for Save Mart.
RENT-A-CENTER
Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a rent-to-own basis. The company operates in four segments: Core U.S., Acceptance Now, International, and Franchising. It offers
durable products, such as consumer electronics, appliances, computers, furniture, and accessories under rental purchase agreements. It operates retail installment sales stores under the Get It Now and Home Choice names; and
rent-to-own and franchised rent-to-own stores under the Rent-A-Centre names. As of February 28, 2014, the company operated approximately 3,000 stores in the United States, Puerto Rico, Canada, and Mexico. Rent-A-Center,
Inc. was founded in 1986 and is headquartered in Plano, Texas.
ME-N-ED’S PIZZA
Milano Restaurants International Corporation operates multiple restaurant concepts, bringing a variety of dining experiences – with an Italian emphasis – to the fast-casual market segment. From pizzerias to bar and grills,
Milano has a diverse portfolio that allows for extensive market development within the same geographic area. Milano develops, franchises, and operates Me-n-Ed’s Pizzerias, Me-n-Ed’s Slices, Me-n-Ed’s Coney Island Grill,
Revolución Tequila Bar and Cocina, Angelo & Vito’s Pizzerias, and Piazza del Pane restaurants. As of January 1, 2012, there are currently 43 company-owned and operated restaurants and 18 franchised restaurants located primarily
in California (59), with the balance located in Dallas/Fort Worth, Texas (2). Of the 61 restaurants, 51 are Me-n-Ed’s Pizzerias, four are Me-n-Ed’s Slices, two are Angelo & Vito’s Pizzerias, and two Piazza del Panes.
ADVANCE AMERICA CASH ADVANCE CENTERS
Advance America, Cash Advance Centers is one of the largest payday advance firms in the US. Active in nearly 30 states, it operates more than 2,100 locations under the Advance America brand and more than 400 more under
the National Cash Advance, Check Advance, First American Cash Advance, First American Cash Loans, Purpose Financial, and Purpose Money banners; California, Florida, and Texas are its largest markets. At its branches or online,
customers provide proof of identification, source of income, bank account, and references, and Advance America loans them from $50 to $1,000 (plus fees and interest) to cover unexpected expenses. Grupo Elektra acquired
Advance America in 2012 for some $780 million.
LIBERTY TAX SERVICE
Liberty Tax continues to firmly establish its growing presence and increasing market share in the personal income tax industry. There are over 4,400 Liberty Tax Service offices operating in the United States and Canada. Liberty
Tax Service started in Canada on September 1, 1997 when CEO John Hewitt acquired a Canadian tax franchisor, U&R Tax Depot. In 1998, the company became Liberty Tax Service and opened its first 5 offices in the United States.
Liberty Tax Service is headquartered in Virginia Beach, Virginia and continues to expand, offering personal income tax service and more in an ever-growing list of locations nationwide.
MONEY MART
Money Mart is a subsidiary of Dollar Financial Group, Inc. a US-based financial services group with over 1,000 locations in seven countries. It focuses on low-income or bad-credit consumers, providing short-term loans, pawnbrokering and gold buying services. DFG’s brands include Money Mart, The Money Shop, Loan Mart, Insta-Cheques, and We The People. The company operates nearly 100 Money Mart locations in California.
SUNLAND INSURANCE SERVICES
With seven Central Valley locations, Sunland Insurance provides convenient and personalized insurances to customers looking for affordable coverage. From auto insurance to homeowners insurance, the trained experts at
Sunland Insurance work through the entire process to provide quality insurance coverage to protect your investments.
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Property Photos
Page 6
(NAP)
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Site Plan
Page 7
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Parcel Map
Page 8
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Wide Aerial
Page 9
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Zoom Aerial
Page 10
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Visalia General Plan Map
Page 11
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Subdivision Activity Map
Page 12
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Grocery & Drug Competition Map
Page 13
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
Location Overview
Page 14
Visalia, California
The City of Visalia is located 190 miles north of Los Angeles, 230 miles
southeast of San Francisco, 40 miles south of Fresno and 70 miles north of
Bakersfield. As the county seat and largest city in Tulare County, Visalia serves
as the economic and governmental center to one of the most productive
single agricultural counties in the country. As of January 1, 2012, the
population within the Visalia city limits was estimated at 127,081. The Visalia
Metropolitan Statistical Area (MSA) has a population of 452,800, making it
the 110th largest metropolitan area in the country. Included in the MSA
and within 20 miles of Visalia are the cities of Tulare (population 59,278),
Porterville (population 54,165), and Dinuba (population 21,453). Visalia has
seen its population grow by 73% during the 1960’s, 82% during the 1970’s,
52% during the 1980’s, 21% during the 1990’s, and 36% from 2000 to 2010.
There are currently 2,987 new homes in various stages of subdivision or
development within the Visalia city limits, with 74% of those new homes
in development north of Highway 198. The economy of Visalia is driven by
agriculture (especially grapes, olives, cotton, citrus, and nursery products),
livestock, and distribution and manufacturing facilities (electronics and
paper products are a couple of significant manufacturing sectors). Tulare
County is the nation’s second largest producer of agricultural commodities
with $6.2 billion in farm production in 2012. Approximately 28% of the
county’s employment base is agriculture-related. The Visalia Unified School
District serves the entire city and is composed of 24 elementary schools
(K-6), 4 middle schools (7-8), and 4 high schools (9-12). The total current
enrollment is approximately 30,000 students and the average enrollment
growth over the past 10 years has been over 400 students per year. Less
than one mile east of the subject property on Houston Avenue is Golden
West High School which enrolls approximately 2,000 students. Visalia is
home to the Visalia Rawhide (a Arizona Diamondbacks MLB affiliate) and
the Amgen Cycling Tour of California.
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
1400 N Ben Maddox Way & 1301 E Houston Ave
Demographics
FULL DEMOGRAPHIC PROFILE
Visalia, Ca 93292
2000 - 2010 Census, 2013 Estimates and 2018 Projections
Visalia, California
1400 - 1550 Ben Maddox Way
Visalia, California
1 MILE
RADIUS
3 MILE
RADIUS
5 MILE
RADIUS
10 MILE
RADIUS
POPULATION
2013 Estimated Population
2018 Estimated Population
2010 Census Population
2000 Census Population
Historical Annual Growth 2000 to 2013
Projected Annual Growth 2013 to 2018
13,182
13,793
12,588
10,197
29.3%
4.6%
82,875
85,965
79,883
67,852
22.1%
3.7%
147,510
155,120
141,006
111,254
32.6%
5.2%
241,878
254,034
231,213
184,302
31.2%
5.0%
4,590
4,825
4,573
3,725
23.22%
5.12%
25,703
26,751
25,686
21,860
17.58%
4.08%
46,206
48,698
45,847
36,568
26.36%
5.39%
73,341
77,200
72,687
58,741
24.85%
5.26%
30.7%
14.6%
13.5%
12.0%
18.6%
10.6%
33.2
33.4%
15.4%
13.2%
11.8%
16.0%
10.1%
30.9
33.4%
14.7%
13.4%
12.3%
15.9%
10.4%
31.4
34.4%
14.6%
13.3%
12.3%
15.4%
10.0%
30.8
$68,404
$64,140
$49,295
$68,623
$65,760
$52,591
$54,118
$51,742
$23,577
$20,211
$21,691
$20,180
69.6%
2.2%
3.3%
.2%
1.7%
19.0%
62.1%
2.1%
5.1%
.1%
1.5%
24.4%
63.7%
1.9%
4.8%
.1%
1.4%
23.5%
63.1%
2.3%
3.7%
.1%
1.4%
24.9%
5,350
40.6%
40.4%
40.4%
42,052
50.7%
50.5%
50.7%
72,265
49.0%
48.8%
49.0%
125,390
51.8%
51.6%
51.8%
HOUSEHOLDS
2013 Est. Households
2018 Proj. Households
2010 Census Households
2000 Census Households
Historical Annual Growth 2000 to 2013
Projected Annual Growth 2013 to 2018
AGE
2013 Est. Population 19 and Under
2013 Est. Population 20 to 29
2013 Est. Population 30 to 39
2013 Est. Population 40 to 49
2013 Est. Population 50 to 64
2013 Est. Popluation 65 and Over
2013 Est. Median age
INCOME
2013 Est. Average Household Income
2013 Est. Median HH Income
2013 Est. Per Capita Income
RACE
2013 Est. White Population
2013 Est. Black or African American Population
2013 Est. Asian Population
2013 Est. Native Hawaiian and OPI Population
2013 Est. American Indian and Alaska Native Population
2013 Other Races Population
HISPANIC
2013 Est. Hispanic Population
2013 Est. Hispanic Population Percentage
2018 Proj. Hispanic Population Percentage
2010 Hispanic Population Percentage
Latitude: 36.318058 Longitude: -119.275457
Page 1 of 3
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]
© 2013 Pitney Bowes Software Inc. All Rights Reserved.
Page 15
Page 16
DISCLAIMER:
Commercial Retail Associates, Inc. and Fortune Associates hereby advise all prospective buyers of property as follows:
The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Commercial Retail
Associates, Inc. or Fortune Associates and should not be made available to any other person or entity without the written consent of Commercial Retail Associates, Inc. or
Fortune Associates. The 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. Commercial Retail Associates, Inc., Fortune
Associates, and the Agents have not made any investigation, and make 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, Commercial Retail Associates, Inc., Fortune Associates, and the Agents have not verified, and will not verify, any of the information
contained herein, nor has Commercial Retail Associates, Inc., Fortune Associates, and the Agents 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 the
information set forth herein.
All property showing are by appointment only.
By accepting this Marketing Brochure you agree to release Commercial Retail Associates, Inc., Fortune Associates, and the Agents and
hold them harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.
Shane Anderson
Tom Anderson
Craig Capriotti
BRE License #01422414
BRE License #00670627
BRE License #00695798
Commercial Retail Associates
Commercial Retail Associates
Fortune Associates
Direct Line: 559/ 650.1305
Direct Line: 559/ 650.1303
[email protected]
[email protected]
Direct Line: 559/ 490.2500
[email protected]