7-eleven anchored investment - colliers · pdf file7-eleven anchored investment newport beach...

Colliers International 3 Park Plaza, Suite 1200, Irvine, CA 92614

Newport Beach | CA7-ElEvEN ANChorEd iNvEstmENt

iNvEstmENt opportuNityfor sale

mEhrAN Foroughi Senior Vice President

License ID Number: 01270056 Direct: 949.724.5527

[email protected]

Exclusively presented By

ColliErs iNtErNAtioNAl 3 park plaza, suite 1200

irvine, CA 92614

www.JustCrE.com

Superior Ave.

Placentia Ave.

W. 15th St.

7-ElEvEN ANChorEd rEtAil

Marketing brochure was last updated on October 28, 2014. The information listed above has been taken from sources that we believe to be reliable, however, we do not accept responsibility for its correctness.


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This Analysis 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 here in is not a substitute for a thorough due diligence investigation. Colliers International has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the sizeand square footage of the property and improvements, the presence or absence of contamination substances, PCB’s mold or asbestos, the compliance with Stateand 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 Analysis has been obtained from sources we believe to bereliable; however, Colliers International has not verified, and will not verify, any of the information containedh erein, nor has Colliers International conducted any investigation regarding these matters and makes no warranty or representation what so ever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

DISCLAIMER STATEMENT

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purchase price $3,145,000

Address 1495 Superior Ave.Newport Beach, CA 92663

Year Built 1985

Approx. Square Feet 3,525

Lot Size Square Feet 15,200

Parcel Number 424-012-01

Frontage on Superior Ave. 315 Ft.

Frontage on Placentia Ave. 241 Ft.Frontage on 15th St 204 Ft.

7-ELEVEN ANCHORED RETAIL

CITY OF NEWPORT BEACHNewport Beach, incorporated in 1906, is an affluent city in Orange County, California. The city’s median family income and property values consistently place high in national rankings. The Daily Pilot, a newspaper published in the neighboring city of Costa Mesa but which serves the greater Newport-Mesa community, reported in 2010 that more than a quarter of households have an income greater than $200,000, and the median value for homes is approximately $1 million. Areas of Newport Beach include Corona del Mar, Balboa Island, Balboa Peninsula (also known as Balboa), Newport Coast, San Joaquin Hills, and Santa Ana Heights, and West Newport.

Newport Beach is home to one Fortune 500 company, insurer Pacific Life. Other companies based in Newport Beach include Acacia Research, Con-exant, Galardi Group (Wienerschnitzel, The Original Hamburger Stand, and Tastee-Freez) Jazz Semiconductor, and PIMCO. Fletcher Jones Mo-tor Cars in Newport Beach is the largest Mercedes-Benz dealership in the world. Other top employers in the city include Conextant, Pacific Life Insur-ance, Glidewell Dental which have a combined staff of approximately 3,100 and Hoag Memorial Hospital Presbyterian which employs over 4,000 people.

Hoag Memorial Hospital Presbyterian is located only a few blocks from the subject property. Hoag is a not-for-profit regional health care deliv-ery network in Orange County, California, that treats nearly 30,000 inpatients and 350,000 outpatients annually. Hoag consists of two acute-care hospi-tals, seven health centers and four urgent care centers. Hoag offers a blend of health care services that include five institutes providing specialized servic-es in the following areas: cancer, heart and vascular, neurosciences, women’s health and orthopedics through Hoag’s affiliate Hoag Orthopedic Institute.

The Versailles community which is blocks from the subject is a gated community located in the Newport Heights area of Newport Beach, Califor-nia with select condos having great views of the ocean and Newport Harbor. The subject property is located near the beginning of the Balboa Penin-sula. Balboa is primarily residential but has some commercial areas as well. A sizeable portion of the Peninsula’s residences are occupied by renters.

The subject property is anchored by 7-Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. 7-Eleven operates, franchises or licenses more than 9,200 7-Eleven® stores in North America. Globally, there are more than 46,300 7-Eleven stores in 16 countries. During 2011, 7-Eleven stores worldwide generated total sales close to $76.6 billion. 7-Eleven has nine years remaining on its NNN lease plus five 5 year options.

Chic Cleaners & Laundry is drop-off facility. the tenant recently extended their lease two years be-fore expiration which shows their commitment to the center. The new rent will be $1.93 PSF as of October 2015. Seller will credit the Buyer the difference in rent from the close of escrow until that time.

Both 7-Eleven and Chic Cleaners & Laundry have been operating successfully at this location since 1985.

Phase I has been performed in 2012. Site is a former gas station from 1964 to 1981. All underground storage tanks were removed in 1981. 7-Eleven Inc. indemnifies owner from any possible environmental contamination caused by gas station and/or dry cleaners.

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october-157-Eleven $100,000Chic Cleaners & Laundry $21,360

total income $121,360Additional income $5,000Non recoverable Expenses $600Total Net Operating Income $125,760

sale price: $3,145,000Cap rate 4.00%Building Sq. Ft. (exterior) 3,550Price Per Sq. Ft. $885.92Land Sq. Ft. 15,200Price Per Sq. Ft. $206.91

Square footage is based upon ALTA Survey performed in 2012.

Chic Cleaner & Laundry is responsible of their prorata share of NNN, excluding insurance.Nonrecoverable Expenses - Refers to expenses that are not recovered by Chic Cleaners & LaundrySeller to credit Buyer for difference in Chic Cleaner's rent from the close of escrow until rental increase occurs in Oct. 2015



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Annual% of

CenterMonthly

Per Sq. Ft. Move-In Expire Date Amount

7-Eleven 2,585 74% $100,000 86% $3.22 4/2/85 1/1/23 1/1/18 $110,000

Option 1 $121,000

Option 2 $133,100

Option 3 $146,410

Option 4 $161,051

Option 5 $177,156

921 26% $16,236 14% $1.47 10/9/85 9/30/20 10/1/15 $21,360

10/1/16 $21,900

10/1/17 $22,440

10/1/18 $23,004

10/1/19 $23,580totAl 3,506 $116,236Square footage is based upon ALTA Survey performed in 2012.Seller to credit Buyer for difference in Chic Cleaner's rent from the close of escrow until rental increase in Oct. 2015

Five 5 Yr. with 10% Increase at the

Commencement of Each Period

Tenant has extended lease on multiple

occasions and has already signed to a

new 5 year lease commencing in 2015.

% of Center

Current rent

Chic Cleaners& Laundry

Name sq. Ft.lease increases




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e - 7

-Ele

ven

type private Company

Traded as wholly owned subsidiary of Seven-

Eleven Japan Co.

global locations over 46,300

North America Locations Over 9,200

standard & poor’sRating (January 2011)

AA-

Retail Power Players 2011 # 40

Year Opened 1927

7- Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Based in Dallas, Texas, 7-Eleven operates, franchises or licenses more than 9,200 7-Eleven® stores in North America. globally, there are more than 46,300 7-Eleven stores in 16 countries.

During 2011, 7-Eleven stores worldwide generated total sales close to $76.6 bil-lion. 7-Eleven has been honored by a number of companies and organizations recently. Accolades include: #2 on Forbes magazine’s 2011 list of Top Franchises

for the Money; #3 spot on Entrepreneur magazine’s Franchise 500 list for 2012, #3 in Forbes maga-zine’s Top 20 Franchises to Start, and #2 in Franchise Times Top 200 Franchise Companies. Hispanic Magazine named 7-Eleven in its Hispanic Corporate Top 100 Companies that provide the most oppor-tunities to Hispanics. 7-Eleven received the 2010 Retailer of the Year honor from PL Buyer because of the company’s private-label brand initiative. 7-Eleven is franchising its stores in the U.S. and expanding through organic growth, acquisitions and its Business Conversion Program.

Source: www.7-eleven.com



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Superior Ave. - 22,000 ADT

Placentia Ave. - 12,000 ADT

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Superior Ave.

Pacific Coast Hwy.

Placentia Ave.Hospital Rd.

Newport Blvd.

W. 15th St.

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populAtioN 1-milE 3-milE 5-milEProjected Population (2017) 21,609 124,182 261,065Estimated Population (2012) 21,701 123,626 258,700Census Population (2000) 22,245 125,563 258,490Projected Annual Growth2012-2017 0.42% 0.45% 0.91%HOUSEHOLDS 1-MILE 3-MILE 5-MILEProjected Population (2017) 8,697 49,878 105,634

Estimated Population (2012) 8,684 49,170 103,730Census Population (2000) 9,078 49,821 103,227Projected Annual Growth2012-2017 0.15% 1.44% 1.84%INCOME STATISTICS 1-MILE 3-MILE 5-MILEAvg. Household Income (2012) $96,516 $98,476 $105,461Median Household Income (2012) $68,235 $69,945 $75,822Per Capita Income (2012) $39,269 $39,774 $42,773POPULATION BY RACE 1-MILE 3-MILE 5-MILEWhite 16,659 94,945 200,659Black or African American 232 1,372 2,701American Indian and Alaska Native 132 647 1,192Asian 745 6,590 21,064Native Hawaiian & Other Pacific Islander 51 408 848Some Other Race Alone 3,103 14,877 21,658Two or More Races 780 4,788 10,577Not Hispanic or Latino 14,785 89,189 203,824Hispanic or Latino 6,917 34,437 54,270

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www.JustCrE.comArea Map

1495 SUPERIOR AVENEWPORT BEACH,CA 92663-6153

Coord: 33.628227, -117.931765Radius - See Appendix for Details

of© 2006-2011 TomTom

Prepared By: © 2012 The Nielsen Company. All rights reserved.

Nielsen Solution Center 1 800 866 651121PageTues Aug 14, 2012

Prepared For:

Prepared on:

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Exclusively Presented By:

Mehran ForoughiSenior Vice President

[email protected]

3 Park Plaza, Suite 1200Irvine, CA 92614

License ID Number: 01270056

7-eleven anchored investment - colliers · pdf file7-eleven anchored investment newport beach...

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