Perris Plaza - City of Moreno Valley, California

C a p i ta l M a r kets | In v estment Properti es
EXCLUSIVELY MARKETED BY:
Matt Burnett
First Vice President
Investment Properties
Lic. 01384566
+1 909 418 2098
[email protected]
Alan Krueger
Senior Vice President
Investment Properties
Lic. 00880814
Perris Plaza
14070–14090 PERRIS BLVD
M O R E N O V A L L E Y, C A 9 2 5 5 3
CONTENTS
INVESTMENT SUMMARY... 3
Synopsis
Investment Highlights
FINANCIALS.................... 6
Cash Flow Projections
Rent Roll
Tenant Profiles
PROPERTY OVERVIEW...... 9
Property Description
Parcel Map
Site Plan
AREA OVERVIEW............ 12
City Overview
County Overview
Demographics
CBRE, Inc. | 4141 Inland Empire Blvd. | Suite 100 | Ontario, CA 91764 | www.cbre.com/invontarioretail
© 2015 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm
its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. 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.
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14070–14090 PERRIS BLVD
INVESTMENT SUMMARY | 3
Investment Summary
Synopsis
CBRE Investment Properties is excited to offer for sale Perris Plaza, a 13,178
Offering Price
$4,752,810
NOI – In Place
$372,491
100% occupied, featuring a dynamic tenant mix including a freestanding
Occupancy
100%
Warehouse Shoe Sale and six-tenant retail building. Displaying first-class
CAP Rate – In Place
7.84%
construction and design, Perris Plaza was recently built in 2005 and has no
13,178
deferred maintenance. Additionally, the property is ideally located at the busy
Total GLA
Total Land Acres
Ownership
1.57
square foot retail center located in Moreno Valley, CA. Perris Plaza is
intersection of Alessandro and Perris Boulevards, two main thoroughfares
and a key intersection in the trade area.
Fee Simple
Strong location at signalized intersection – across from three major drug stores.
14070–14090 PERRIS BLVD
INVESTMENT SUMMARY | 4
Investment Highlights
STRONG INVESTMENT FUNDAMENTALS
• 100% leased to a diverse tenant mix, including food, clothing and general
retail uses.
• Net lease structures allow recapture of property expenses.
• Recent construction (2005) – no deferred maintenance.
• Owner can increase after tax cash-flow by depreciating the improvement
– not a ground lease.
PRIME LOCATION IN ESTABLISHED TRADE AREA
• Perris and Alessandro Blvd. are major thoroughfares - more than 50,000
cars per day at intersection.
• Located at signalized intersection across from three major drug stores.
• Neighboring retailers include Walgreens, CVS, Rite Aid and 99 Cent Only.
• Strong Demographics, with over 214,692 people living within 5 miles.
LOW MANAGEMENT HASSLE
• Six-tenant building on net leases provides easy ownership oversight.
• Newer construction and outstanding build quality leave no deferred
maintenance obligations for new ownership.
• Net leases allow all operating expensed to be passed to Tenants, including
management fees.
• First rate architectural design and detail.
IDEAL 1031 REPLACEMENT PROPERTY
• Available for quick close to accommodate 1031 Exchange timelines.
• Offered free and clear of existing debt.
High quality construction with no deferred maintenance.
14070–14090 PERRIS BLVD
INVESTMENT SUMMARY | 5
OVER 155,000 PEOPLE
LIVING WITHIN 5 MILES.
S
RI
R
PE
PERRIS PLAZA
PROPOSED CONDO
DEVELOPMENT
ALESSA
NDRO
BLVD
VD
BL
14070–14090 PERRIS BLVD
FINANCIALS | 6
Property Cash Flow
SUMMARY
PRICING SUMMARY
Purchase Price
PROPERTY SPECIFICATIONS
$4,752,810
Cap Rate
7.84%
Leveraged Return
10.63%
Year Built
Total Rentable Area (SF)
Occupancy
2005
13,178
100%
POTENTIAL LOAN SCENARIO
Loan To Value
60%
Loan Amount
$2,851,686
Down Payment
$1,901,124
4.35%
Amortization/Term
30/10
PROPOSED CONDO
DEVELOPMENT
OPERATING CASH FLOW
IS B
PERR
Rate
*No assumable financing in place buyer may pay all cash or secure new
loan. Call broker for details.
LVD
YEAR 1
Fiscal Year Commences July 1
REVENUE
Base Rental Revenue
376,909
Expense Reimbursement Revenue
82,589
Adjusted Gross Revenue
OPERATING EXPENSES
459,498
PSF
CAM
1.10
14,504
Insurance
0.32
4,250
Management (3.00%)
0.84
11,130
Property Taxes[1]
3.79
49,919
Water
Total Operating Expenses
Net Operating Income
All Cash Return
0.55
7,204
6.60
(87,007)
$372,491
7.84%
FINANCING (Proposed)
Less Loan Payment
(170,352)
Leveraged Cash Flow
$202,139
Leveraged Cash on Cash Return
[1] Taxes reassessed @ 1.06212%
10.63%
ALESSANDRO BLVD
14070–14090 PERRIS BLVD
FINANCIALS | 7
VALUATION ANALYSIS -­‐ Perris Plaza Ma� Burne� First Vice President CBRE Investment Proper�es T: 909.418.2098 14070 Perris Blvd. -­‐ Moreno Valley, CA Rent Roll
Lease Term
Tenant
Base Rent
Suite
Square
Feet
Pro-rata
Begin
End
Begin
Monthly
PSF
Annually
PSF
101
6,570
49.86%
Oct-­‐2009
Sep-­‐2019
Current
Apr-­‐17
$15,876.00
$16,425.00
$2.42
$2.50
$190,512.00
$197,100.00
$29.00
$30.00
Oct-­‐2019
Oct-­‐2024
Sep-­‐2024
Sep-­‐2029
Future
Future
$19,908.00
$22,302.00
$3.03
$3.39
$238,896.00
$267,624.00
$36.36
$40.73
Nov-­‐2009
MTM Current
$2,340.00
$2.60
$28,080.00
$31.20
Recovery
Type
Rental Increases /
Options
NNN + 10% Mgmt on CAM
Tenant has two 5-­‐year options.
NNN + 5% Mgmt. Fee
Tenant has 1 option, but landlord had kept MTM to defer to new owner.
Building 14070
Warehouse Options
Building 14090
Smoke Shop
101
900
6.83%
[1] Options
Nov-­‐2014
Oct-­‐2019
Future
$2,574.00
$2.86
$30,888.00
$34.32
Clothing
Store
102
1,300
9.86%
Oct-­‐2015
Sep-­‐2020
Current
Oct-­‐2016
Oct-­‐2017
Oct-­‐2018
Oct-­‐2019
$2,600.00
$2,678.00
$2,758.34
$2,841.09
$2,926.32
$2.00
$2.06
$2.12
$2.19
$2.25
$31,200.00
$32,136.00
$33,100.08
$34,093.08
$35,115.87
$24.00
$24.72
$25.46
$26.23
$27.01
NNN + Mgmt. Fee
New 5 year lease. Rent increases 2.00% annually.
Recording
Studio
103
1,300
9.86%
Oct-­‐2015
Sep-­‐2020
Current
Oct-­‐2016
Oct-­‐2017
Oct-­‐2018
Oct-­‐2019
$2,600.00
$2,678.00
$2,758.34
$2,841.09
$2,926.32
$2.00
$2.06
$2.12
$2.19
$2.25
$31,200.00
$32,136.00
$33,100.08
$34,093.08
$35,115.87
$24.00
$24.72
$25.46
$26.23
$27.01
NNN + Mgmt. Fee
New 5 year lease. Rent increases 2.00% annually.
Hair Salon
104
900
6.83%
Feb-­‐2010
MTM
Current
$1,800.00
$2.00
$21,600.00
$24.00
Gross
Tenant has no options.
Tortas Mexican
Rest. 105
2,208
16.76%
Sep-­‐2008
Aug-­‐2018
Current
Sep-­‐2015
Sep-­‐2016
$6,042.00
$6,223.26
$6,409.96
$2.74
$2.82
$2.90
$72,504.00
$74,679.12
$76,919.49
$32.84
$33.82
$34.84
NNN + Mgmt. and 15% Admin Fee on CAM
Tenant has one 5-­‐year option to renew.
Aug-­‐2023
Future
$6,602.26
$2.99
$79,227.08
$35.88
Current In Place
Year 1 Commencing July 1
$31,258.00
$31,409.05
$2.37
$2.38
$375,096.00
$376,908.60
$28.46
$28.60
Options
Sep-­‐2018
Vacant
Occupied
TOTALS/AVG:
0
13,178
13,178
0.00%
100.00%
100.00%
[1] Tenant has one option, but landlord has elected to keep month to month to allow for space flexibility.
14070–14090 PERRIS BLVD
FINANCIALS | 8
Tenant Profile
Warehouse Shoe Sale, now known as WSS, is a premier footwear retailer in
the U.S. operating neighborhood based stores.
WSS provides a variety of
brands, great values and a large selection of athletic, dress, fashion, and
casual footwear for the entire family. With a large store format, WSS showcases
thousands of styles from major brands. Founded in Southern California in 1984
by entrepreneur Eric Alon, all 62 WSS stores feature a unique operating format
that displays all styles and sizes, allowing customers to easily browse in a hassle free environment while also
offering a friendly and attentive sales staff that provide a high level of customer service. The success of this
business model has allowed WSS to continue its rapid expansion into new markets.
COMPANY PROFILE
Private Company:
WSS
Website:
www.shopwss.com
Headquarters:
Los Angeles, CA
No. of Locations:
±60
14070–14090 PERRIS BLVD
PROPERTY OVERVIEW | 9
Property Description
LOCATION DESCRIPTION
The property is located on Perris Blvd., just off of Alessandro Blvd. in the City of Moreno Valley, Riverside
County, California. Close proximity to the 60 Hwy and I-215.
BUILDING AREA
Approximately 13,178 SF of rentable space.
YEAR BUILT
2005
PARCEL
This property consists of two single parcels containing approximately 1.57 Acres or 68,389 square feet of
land area.
Address
14070-14090 Perris Blvd.
Moreno Valley, Ca 92553
Parcel
Acres
484-020-026 1.57
ZONING
The parcel is zoned C1 (Commercial)
PARKING
The property has approximately 70 dedicated parking spaces
ACCESS
There is one direct point of access to the property and one reciprocal entry through an adjacent property.
TRAFFIC COUNTS
Perris Blvd........................................ 27,300 (2006 ADT)
Highland Springs Ave. at I-10............ 30,300 cpd (2004)
14070–14090 PERRIS BLVD
PROPERTY OVERVIEW | 10
Site Plan
Cigarette
Plus
Clothing
Store
Recording
Studio
Beauty
Salon
Tortas Sinaloa
Las Originales
2,014 SF
WSS
6,570 SF
ALESSANDRO BLVD
PERRIS BLVD
14070–14090 PERRIS BLVD
LOCATION | 11
Over 214,692 people
within 5 miles.
PERRIS PLAZA
14070–14090 PERRIS BLVD
AREA OVERVIEW | 12
CITY OF MORENO VALLEY
5-MILE BUSINESS SUMMARY
Construc�on 3.01% Wholesale Trade 5.63% Retail Trade 29.53% 1 MILE
3 MILES
5 MILES
2014 Estimated Population
26,382
156,867
214,692
2019 Projected Population
27,419
166,191
227,702
2010 Census Population
25,541
149,043
203,785
2000 Census Population
22,519
109,902
148,516
Growth 2010-2014
3.29%
5.25%
5.35%
Growth 2014-2019
3.93%
5.94%
6.06%
2014 Estimated Households
6,470
40,729
57,327
2019 Projected Households
6,765
43,089
60,640
2010 Census Households
6,184
38,860
54,830
2000 Census Households
5,691
29,867
41,313
Growth 2010-2014
4.63%
4.81%
4.55%
Growth 2014-2019
4.55%
5.79%
5.78%
2014 Estimated Households
6,470
40,729
57,327
850
5,268
6,767
- Income Less than $15,000
Public Administra�on 12.13% Finance, Insurance & Real Estate 5.17% Manufacturing 3.84% Transporta�on, Agricultural, Forestry & Communica�on Fishing Non-­‐classifiable & U�li�es 0.62% 0.35% 2.23% TOTAL EMPLOYEES: 47,093
INCOME
Services 37.48% HOUSEHOLDS
Moreno Valley is a city located in Riverside County, California and
is part of the San Bernardino – Riverside Metropolitan Area. The
city is 19 miles south of downtown San Bernardino, while Riverside
lies directly to the west. Moreno Valley was founded in 1984 and
exploded in population by 1990 to become the second largest city in Riverside County.
Per the California Department of Finance, Moreno Valley boasts 198,129 residents with
a projected population growth to 216,450 by 2018. Moreno Valley is also one of the
most populous areas of the Inland Empire, a region comprised of Riverside and San
Bernardino Counties with a population of more than 4,000,000 people. The Inland
Empire market saw a population surge in the late 1990’s and early 2000’s, following the
demand for affordable family housing, and is still growing today.
POPULATION
DEMOGRAPHICS
- Income $15,000 to $24,999
839
4,680
5,969
- Income $25,000 to $34,999
967
4,656
6,020
- Income $35,000 to $49,999
1,090
6,541
8,715
- Income $50,000 to $74,999
1,319
8,404
11,500
- Income $75,000 to $99,999
712
5,345
8,055
- Income $100,000 to $149,999
574
4,408
7,567
- Income $150,000 to $199,999
87
948
1,794
- Income $200,000 to $499,999
30
931
891
1
20
49
2014 Est. Average Household Income
$51,927
$58,047
$63,540
2019 Prj. Average Household Income
$53,279
$59,957
$65,696
- Income $500,000 and over
Affiliated Business Disclosure & Confidentiality Agreement
AFFILIATED BUSINESS DISCLOSURE
CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses
including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various
clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those,
or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the
Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the
sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in
concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offer or prospective offerer, but rather will conduct its business in a manner consistent
with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.
CONFIDENTIALITY AGREEMENT
This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.
This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the
“Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. 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
Owner and CBRE, Inc. 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. 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. These summaries do not purport to be complete nor necessarily accurate descriptions
of the full agreements referenced. Interested parties are 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 Owner or CBRE, Inc, 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.
The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any
time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or
making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions
to the Owner’s obligations therein have been satisfied or waived.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not
disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or
any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.
EXCLUSIVELY MARKETED BY:
Matt Burnett
First Vice President
Investment Properties
Lic. 01384566
+1 909 418 2098
[email protected]
Alan Krueger
Senior Vice President
Investment Properties
Lic. 00880814
CBRE, Inc.
4141 Inland Empire Blvd.
Suite 100
Ontario, CA 91764
www.cbre.com/invontarioretail