FOR SALE Perko`s Cafe - Charles Dunn Company

625 S. CLOVIS AVENUE
Fresno, CA 93727
FOR SALE
Perko’s Cafe
Located in a Regional, OSH Anchored Shopping Center
Offering Memorandum
CHARLES DUNN COMPANY 1925 Century Park East, Suite 2350 Los Angeles, CA 90067 | Lic. #01201641
www.charlesdunn.com
625 S. Clovis Avenue
1
INVESTMENT SUMMARY
Investment Summary • Tenant Overview • Offering Procedure
2 PROPERTY OVERVIEW
Parcel Map • Street & Aerial Maps • Traffic Counts • Property Images
3 MARKET OVERVIEW
Fresno Overview • Property Demographic Report
4 FINANCIAL SUMMARY
Lease Abstract • Confidentiality & Disclaimer
Exclusively
Marketed By:
JUSTIN D. MENDELSON
Senior Director
(310) 492-8413
[email protected]
Lic. #01877973
ASHLEY E. SAYE
Associate
(310)492-8406
[email protected]
Lic. #01955010
CHARLES DUNN COMPANY
1925 Century Park East
Suite 2350
Los Angeles, CA 90067
Lic. #01201641
www.charlesdunn.com
Disclosure Advisement
Charles Dunn Company has not made any investigation, has not verified, and will not verify, any of the information contained herein (Pages 1-26), and makes no warranty or representation whatsoever regarding the accuracy or
completeness of the information provided with respect to the following:
»» The compliance with City, County, State, and Federal regulations.
»» The physical condition of the improvements on the Property.
»» The income or expenses for the Property.
»» The financial condition or business prospects of any tenant in the Property.
»» The future projected financial performance of the Property.
»» Any tenant’s plans or intentions to continue its occupancy of the Property.
»» The size and square footage of the Property (land and improvements).
»» All prospective purchasers must take appropriate and independent measures to verify all of the information set forth herein.
»» The presence or absence of contaminating substances, including PCB or asbestos at the Property.
© 2015 Charles Dunn Company, Inc. These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by the Charles Dunn Company
or its personnel, and all interested parties must independently verify its accuracy and completeness. As well, any projections, assumptions, opinion, or estimates are used for example only and do not represent the current or future
performance of the identified property. Your tax, financial, legal and toxic substance advisors should conduct a careful investigation of the property and its suitability for your needs, including land use limitations. BRE Lic. #01201641
Investment
Summary
Investment Summary
625 S. Clovis Avenue
Fresno, CA 93727
C
harles Dunn Company is pleased to present an Exclusive Investment Offering for a single-tenant Perko’s leased Retail building located at 625 S. Clovis Avenue,
Fresno, CA 93727 (the “Property”).
ADDRESS
OFFERING PRICE
625 S. Clovis Avenue
Fresno, CA 93727
$1,152,000
JANUARY 2016 ANNUAL RENT
$72,000
CAP RATE
6.25%
RENT INCREASES
$3,000 Annually
ASSESSOR’S PARCEL NUMBER
313-240-62
OWNERSHIP RIGHTS
Fee Simple Interest in land and building.
LOCATION
LAND SIZE
In the City of Fresno next to the intersection of E. Kings Canyon Road
and S. Clovis Avenue.
25,239 SF (per public record)
IMPROVEMENTS
The Property consists of ±3,466 square feet of rentable area currently used as a casual dining restaurant.
IMPROVEMENTS DESCRIPTION
The construction is of commercial type.
SITE IMPROVEMENTS
The Property has concrete walkways, asphalt driveways, and parking lot lighting. It is appealingly landscaped with grass, small
and mature trees and shrubs surrounding the improvements and parking area.
There are approximately 96 feet of frontage on Clovis Avenue.
FRONTAGE
ACCESS
PARKING
Access points into the center include two (2) entrances from Clovis Avenue and additional entrances from the shopping center
the Property is located within.
There are ±49 parking spaces (1 per 100 square feet of building area) including handicap spaces.
TENANCY
The Property is 100% leased to Perko’s Cafe.
OPERATING EXPENSES
NNN
4
Tenant Profile
P
erko’s Farm Fresh is an upscale family restaurant catering to local tastes. While innovative recipes keep the menu diverse,
traditional meals continue to please a wide variety of tastes. With on-site preparation of breakfast, lunch and dinner, Perko’s
has become the restaurant of choice for all ages. Perko’s Farm Fresh is open for breakfast, lunch, and dinner 7 days a week,
from 6AM through 9PM.
625 S. Clovis Avenue
Fresno, CA 93727
Locations: 22
Headquarters: Central Valley, CA
Website: www.perkos.com
5
Offering Procedure
625 S. Clovis Avenue
Fresno, CA 93727
Charles Dunn Company has been authorized to prepare and distribute the data in this Exclusive Investment Offering (“Exclusive Investment Offering”) to a select
group of qualified parties in order to solicit their interest and offers to acquire the existing improvements and land (“The Property”). Interested parties are invited
to review this opportunity and make an offer based on their analysis. The Property is located at 625 S. Clovis Avenue Fresno, CA 93727 (“the Property”), with the
selection of the buyer being influenced by the level of interest, track record, level of prior due diligence initially undertaken, and financial ability to purchase the
Property. Preference will be given to all-cash investors who will not seek financing.
Confidentiality Agreement
NOTE: Prospective purchasers and their brokers (if any) may be required to sign a Confidentiality and Registration Agreement if there is an accepted offer in order
to receive detailed information beyond the information contained in this Exclusive Investment Offering. They will both affirm that they have read and understand
the details of the Confidentiality Agreement and Disclaimer contained in the Exclusive Investment Offering. The document will further state that the prospective
purchaser’s decision to buy the Property does not and will not rely on any information contained in this Exclusive Investment Offering or any information that is
provided to them by Charles Dunn Company that is not specifically from the property’s owner and deemed a part the official due diligence material. Brokers may be
required to sign a Cooperating Broker Compensation Agreement at the beginning of negotiations on behalf of a prospective purchaser.
Specific Contact
Prospective purchasers and/or their brokers are required to contact the Listing Agents at the Charles Dunn Company for information about the Property. They are not
authorized to contact the Ownership or tenants regarding the Property.
Submission of Offers
There is not a specific due date for offers, thus, the Ownership may accept an offer of their choosing at any time. Offers must be submitted in a Letter of Intent format.
All decisions are at the Ownership’s sole discretion.
Investors Negotiations and Selection
The Ownership will respond to all bona fide offers as they are received by the Charles Dunn Company. The Ownership may also reject any offer not meeting the
standards of this Exclusive Investment Offering or from a purchaser deemed not qualified to close the transaction. If an offer results in the Ownership choosing to
open negotiations with a specific purchaser, the purchaser will be asked from the beginning of the negotiations to provide proof of their financial ability to provide
the equity portion of the purchase price and to provide financial references. The eventual selection of the purchaser will be influenced by the level of interest, track
record, level of prior due diligence initially undertaken, and financial ability to close the transaction.
Due Diligence Period
The selected purchaser will be given a fixed period of time to perform its due diligence on the Property and may be encouraged to begin their due diligence upon
the execution of an accepted Letter of Intent. The purchaser will be provided a draft Purchase & Sale Agreement by the Ownership. The executed Purchase & Sale
Agreement will require an immediate “Good Faith Deposit” by the purchaser, which becomes non-refundable when the purchaser removes contingencies
within the time specified.
6
Property
Overview
Property Maps
625 S. Clovis Avenue
Fresno, CA 93727
8
Property Maps
625 S. Clovis Avenue
Fresno, CA 93727
Text goes here.
9
Traffic Counts
625 S. Clovis Avenue
Fresno, CA 93727
Traffic Count Report
Perkos Cafe
625 S Clovis Ave, Fresno, CA 93727
Building Type:
Secondary:
GLA:
Year Built:
Total Available:
% Leased:
Rent/SF/Mo:
General Retail
Freestanding
3,466 SF
1979
0 SF
100%
-$1.73
Street
Cross Street
Cross Str Dist
1
S Clovis Ave
E Kings Canyon Rd
0.04 N
Count
Year
2011
2
S Clovis Ave
E Kings Canyon Rd
0.05 N
2014
30,014
MPSI
.11
3
E Kings Canyon Rd
S Walling Ave
0.06 E
2011
19,322
MPSI
.21
4
E Kings Canyon Rd
S Walling Ave
0.05 E
2014
17,957
MPSI
.21
5
E Huntington Ave
S Clovis Ave
0.06 W
2008
2,504
ADT
.22
6
S Clovis Ave
E Park Circle Dr
0.04 N
2014
21,919
MPSI
.43
7
E Tulare Ave
S Rogers Ln
0.03 E
2014
8,475
MPSI
.46
8
Clovis Ave
E Washington Ave
0.31 N
2011
47,270
MPSI
.47
9
Clovis Ave
E Washington Ave
0.28 N
2014
33,330
MPSI
.47
10
E Kings Canyon Rd
S Minnewawa Ave
0.05 W
2008
20,056
ADT
.48
Copyrighted report licensed to Charles Dunn Company, Inc. - 8883.
Avg Daily
Volume
25,729
Volume
Miles from
Type Subject Prop
MPSI
.11
10
11/17/2015
Property Images
625 S. Clovis Avenue
Fresno, CA 93727
11
Market
Overview
MARKET OVERVIEW: Fresno
General Overview
Fresno, the seat of Fresno County, is the fifth largest
city in California, the largest inland city in California,
and the 34th largest city in the nation. Fresno is
situated approximately 200 miles north of Los Angeles
and 170 miles south of Sacramento.
Fresno is a very diverse city. It is comprised of persons
from more than 90 different nationalities who speak
over 75 different languages. Fresno has an ethnic mix
from its earliest years due to Chinese, Scandinavian,
German, Russian, Japanese, and Armenian settlers, and
became home to a large Hispanic population by the
early 20th century. The Fresno Hmong community is
one of the largest two urban Hmong communities in
the United States.
Ethnic Composition
50.1%
White
29.4%
Other Race
Population (2014)
514,094
Median Income (2014)
$50,843
Population Change
18.3% (2000 to 2014)
Median Age (2014)
29.7
Area
111.957 square miles
Education (25+)
No High School Diploma ..........24.8%
High School Graduate...............23.1%
Some College...........................23.9%
College Degree+ .....................28.1%
12.5%
Asian
8.0%
Black or
African American
13
MARKET OVERVIEW: Fresno
Economy & Transportation
ECONOMY
Located in the heart of the San Joaquin Valley, Fresno is the financial, industrial,
trade, and commercial capital of the Valley. Fresno’s economy continue to diversify,
reflecting its advantageous location, low business costs and attractive cost of living.
Agriculture is the primary industry of Fresno and continues to be robust.
The Brookings Institute named Fresno as one of the fastest growing large economies
in the world and ranked Fresno 49th out of 300 largest global metropolitan areas in
January 2015. Brookings reported Fresno’s rapid employment growth as the primary
factor for their ranking, 4.5% compared to 1.6% for the United States.
Fresno economy showed steady improvement during fiscal year 2014, according to
its 2014 Comprehensive Annual Financial Report. The unemployment rate decreased
to 11.4%, compared to 12.9% in previous year. The number of its building permits
increased from 8,923 permits in 2013 to 9,766 permits in 2014.
PRINCIPAL EMPLOYERS
Employer
# of
Employees
Fresno Unified School District
6,829
County of Fresno
6,568
City of Fresno
4,100
Community Regional Medical Center
3,894
Kaiser Permanente Medical Center
1,765
Saint Agnes Medical Center
1,602
California State University, Fresno
1,542
State Center Community College District
1,183
VA Central California Healthcare System
1,062
AmeriGuard Security Services, Inc.
650
Source: Fresno CAFR for the fiscal year ended June 30, 2014
TRANSPORTATION
Fresno Yosemite International Airport (FAT) is a joint civil-military public airport in
eastern Fresno. Despite its name, the airport is located more than 60 miles south of
Yosemite National Park. Home to Fresno Air National Guard Base and California Air
National Guard, the airport has flights to airline hubs throughout the Western United
States, international flights to Mexico, and cargo services. The top three domestic routes
from FAT are: Phoenix, Los Angeles and Dallas/Fort Worth. FAT was the first airport in
the nation to install a web-based, wireless system (PASSUR Flight Information Display)
to list active flight arrivals and departures and the first one to implement an anti-terrorist
facial recognition system, shortly after 9-11 attacks.
Fresno Area Express (FAX) is the largest mass public transportation provider in the
San Joaquin Valley. The public transportation has 16 Fresno routes and 4 Clovis routes,
stopping at schools, government offices, other transportation stations, shopping centers,
hospitals and ballparks. The city will have a new bus rapid transit system, City of Fresno
Bus Rapid Transit (Q). It is expected to be in service in December 2016.
14
MARKET OVERVIEW: Fresno
Notable Locations
California State University, Fresno, also known as Fresno State, is a public comprehensive
university and one of 23 campuses within the California State University system. Fresno State
is located at the northeast edge of Fresno, within a three-hour drive of both Los Angeles and
San Francisco. The university offers 64 undergraduate degree programs, 44 master degree
programs and 3 doctoral subject areas. Fresno State has 2,200 full and part-time faculty and
staff members; 96% of the tenured faculty hold doctoral or other terminal degrees in their areas
of study.
Fresno Convention & Entertainment Center is a
four building complex convention center located
in downtown Fresno. It is the premier performing arts and convention center site in California’s
Central Valley. The Selland Arena of the entertainment center was home to the Central Valley
Coyotes, the former Fresno professional football team that ceased operations in December 2010.
William Saroyan Theatre is home to Fresno Philharmonic and the Fresno Ballet. The theatre has
hosted many nationally acclaimed perfomers, plays, and events such as Jerry Seinfeld, David
Copperfield, The Sound of Music, Evita, Chicago, and the Miss California Pageant.
Fresno Metropolitan Museum of Art and Science (The Met) is one of the largest museums
between San Francisco and Los Angeles, located in the historic Fresno Bee building in
downtown Fresno. Since its opening in 1984, the museum has welcomed more than 2 million
visitors with its programs in art, history and science. The Met became the first organization
outside the Bay Area to win Northern California’s “Award of Excellence” in non-profit
management from Chevron and The Management Center of San Francisco in 1995. The museum
has also been awarded as the Best Museum each year since 1999 by the readers of Fresno Bee.
15
MARKET OVERVIEW: Fresno
Property Demographic Report
1 Mile Ring
3 Mile Ring
5 Mile Ring
Population Trend
1 Mile Ring
3 Mile Ring
5 Mile Ring
2015 Income
2000 Total Population
11,525
74,606
191,791
Per Capita Income
$19,513
$15,011
$14,772
2010 Total Population
12,616
90,434
216,661
Household Income: Median
$43,679
$39,184
$37,965
2015 Total Population
13,481
96,370
229,108
Household Income: Average
$60,814
$54,133
$51,914
2019 Total Population
13,983
101,881
240,103
Less than $10,000
10.5%
11.2%
11.2%
$10,000 to $14,999
7.9%
8.6%
8.2%
Households Trend
2000 Total Households
3,825
21,459
56,197
$15,000 to $19,999
7.0%
8.1%
8.1%
2010 Total Households
4,059
25,371
62,257
$20,000 to $24,999
4.9%
6.2%
7.0%
2015 Total Households
4,251
26,388
64,382
$25,000 to $29,999
6.1%
5.9%
6.6%
2019 Total Households
4,356
27,538
66,644
$30,000 to $34,999
6.3%
6.2%
5.9%
$35,000 to $39,999
3.6%
4.5%
4.9%
Population Change Trend
$40,000 to $44,999
5.0%
5.0%
5.0%
2000 to 2010 Population Change
9.5%
21.2%
13.0%
$45,000 to $49,999
4.3%
4.2%
4.7%
2000 to 2015 Population Change
17.0%
29.2%
19.5%
$50,000 to $59,999
7.7%
7.3%
7.9%
2010 to 2019 Population Change
10.8%
12.7%
10.8%
$60,000 to $74,999
10.0%
10.3%
9.3%
2015 to 2019 Population Change
3.7%
5.7%
4.8%
$75,000 to $99,999
Household Change Trend
10.0%
9.7%
9.9%
$100,000 to $124,999
7.6%
6.0%
5.3%
$125,000 to $149,999
3.0%
2.4%
2.3%
2000 to 2010 Household Change
6.1%
18.2%
10.8%
$150,000 to $199,999
3.2%
2.5%
2.1%
2000 to 2015 Household Change
11.1%
23.0%
14.6%
$200,000 or more
2.8%
1.8%
1.5%
2010 to 2019 Household Change
7.3%
8.5%
7.0%
2015 to 2019 Household Change
2.5%
4.4%
3.5%
6.5%
6.9%
7.1%
1.1%
2.9%
3.2%
Education
2015 Educational Detail
2015 Race
White alone
Black or African American alone
American Indian and Alaska Native alone
Asian alone
Native Hawaiian and OPI alone
Some Other Race alone
Two or More Races
% No Schooling Completed
44.6%
38.1%
43.1%
8.0%
7.2%
5.9%
% 5th and 6th Grade
2.7%
6.0%
5.9%
1.4%
1.6%
1.9%
% 7th and 8th Grade
1.9%
3.4%
3.8%
18.8%
20.1%
16.2%
% 9th Grade
1.3%
2.9%
3.2%
.1%
.2%
.2%
% 10th Grade
1.8%
3.0%
3.0%
21.9%
28.1%
28.0%
% 11th Grade
3.7%
3.6%
3.7%
5.3%
4.7%
4.8%
% 12th Grade No Diploma
2.0%
2.8%
3.2%
24.0%
3.1
3.6
3.5
% Nursery School to 4th Grade
24.8%
24.4%
% Some College <1 Year
6.4%
6.1%
6.1%
% Some College 1+ Years No Degree
19.5%
16.4%
16.0%
% High School Graduate, GED, or Alternative
Average household size
11,889
94,862
260,642
% Associate's Degree
Total Employee Population
2,989
29,854
104,858
% Bachelor's Degree
Total Daytime at Home Population
Total Employee Population (% of Daytime
Population)
Total Daytime at Home Population (% of
Daytime Population)
8,900
65,008
155,784
% Master's Degree
Total Daytime Population
25.1%
31.5%
40.2%
74.9%
68.5%
59.8%
% Professional School Degree
% Doctorate Degree
9.1%
7.0%
6.7%
13.9%
10.8%
10.2%
3.5%
2.6%
2.7%
.7%
.7%
.7%
1.0%
.6%
.5%
16
Financial
Summary
Lease Abstract
625 S. Clovis Avenue
Fresno, CA 93727
TENANT
DBA Perko’s Cafe
ADDRESS
625 S. Clovis Avenue, Fresno, CA 93727
LEASE / RENT COMMENCEMENT
January 1, 2012
LEASE EXPIRATION
December 31, 2021
RENEWAL OPTIONS
Two (2) - Five (5) year options with rent adjusting to market in each option period
PERCENTAGE RENT
7% of Net Sales exceeding the base rent
TAXES, INSURANCE, MAINTENANCE NNN; Landlord shall have no obligation
ANNUAL INCREASES FOR BASE RENT PER YEAR
Rent Period
Annual Total
1/1/2012 - 12/31/2012
$60,000
1/1/2013 - 12/31/2013
$63,000
1/1/2014 - 12/31/2014
$66,000
1/1/2015 - 12/31/2015
$69,000
1/1/2016 - 12/31/2016
$72,000
1/1/2017 - 12/31/2017
$75,000
1/1/2018 - 12/31/2018
$78,000
1/1/2019 - 12/31/2019
$81,000
1/1/2020 - 12/31/2020
$84,000
1/1/2021 - 12/31/2021
$87,000
© 2015 Charles Dunn Company, Inc. These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by the Charles Dunn Company or its personnel, and all interested parties must independently verify
its accuracy and completeness. As well, any projections, assumptions, opinion, or estimates are used for example only and do not represent the current or future performance of the identified property. Your tax, financial, legal and toxic substance advisors should conduct a careful investigation
of the property and its suitability for your needs, including land use limitations. BRE Lic. #01201641
18
Confidentiality & Disclaimer
625 S. Clovis Avenue
Fresno, CA 93727
Charles Dunn Company has not made any investigation, has not verified, and will not verify, any of the information contained herein, and makes no warranty or
representation whatsoever regarding the accuracy or completeness of the information provided with respect to the following:
––
––
––
––
––
––
––
––
The income or expenses for the Property
The future projected financial performance of the Property
The size and square footage of the Property (land and improvements)
The presence or absence of contaminating substances, including PCB or asbestos
The compliance with City, County, State, and Federal regulations
The physical condition of the improvements on the Property
The financial condition or business prospects of any tenant in the Property
Any tenant’s plans or intentions to continue its occupancy of the Property
All prospective purchasers must take appropriate and independent measures to verify all of the information set forth herein above.
NOTE: Prospective purchasers and their brokers (if any) may be required to sign a Confidentiality and Registration Agreement if there is an accepted offer in order to
receive detailed information beyond the information contained in this Exclusive Investment Offering. They will both affirm that they have read and understand the details
of the Confidentiality Agreement and Disclaimer contained in the Exclusive Investment Offering. The document will further state that the prospective purchaser’s decision
to buy the Property does not and will not rely on any information contained in this Exclusive Investment Offering or any information that is provided to them by Charles
Dunn Company that is not specifically from the property’s owner and deemed a part the official due diligence material. Brokers may be required to sign a Cooperating
Broker Compensation Agreement at the beginning of negotiations on behalf of a prospective purchaser. Prospective purchasers and/or their brokers are required to
contact the Listing Agents at the Charles Dunn Company for information about the Property They are not authorized to contact the Ownership or tenants regarding the
Property.
© 2015 Charles Dunn Company, Inc. These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by the Charles Dunn Company or its personnel, and all interested parties must independently verify
its accuracy and completeness. As well, any projections, assumptions, opinion, or estimates are used for example only and do not represent the current or future performance of the identified property. Your tax, financial, legal and toxic substance advisors should conduct a careful investigation
of the property and its suitability for your needs, including land use limitations. BRE Lic. #01201641
19
625 S. CLOVIS
AVENUE
CONTACT
JUSTIN D. MENDELSON
Senior Director
(310) 492-8413
[email protected]
Lic. #01877973
ASHLEY E. SAYE
Associate
(310)492-8406
[email protected]
Lic. #01955010
CHARLES DUNN COMPANY
1925 Century Park East
Suite 2350
Los Angeles, CA 90067
Lic. #01201641
www.charlesdunn.com