manchester strip center - loopnet€¦ · manchester strip center 605-619 w manchester blvd •...
TRANSCRIPT
MANCHESTER STRIP CENTER605-619 W Manchester Blvd • Inglewood, CA 90301
OFFERING MEMORANDUM
TROPHY PROPERTY
STRIP CENTER WITH NNN LEASES
SIGNALIZED CORNER
MAJOR CONNECTION FROM 405 FWY TO BRAND NEW STADIUM
Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any
corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or
subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about
this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has
been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References
to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus &
Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
605 - 619 W MANCHESTER BLVD
Inglewood, CA 90301
ACT ID ZAA0380352
605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD
TABLE OF CONTENTS
01. Executive Summary
02. The City of Inglewood
03. Demographics
04. Regional Map
05. Aerial Map
06. Rent Roll
07. Market Comparables
08. Financial Analysis
09. Property Photos
Trophy Property
In one of the hottest Real Estate Markets in the Nation
4.3% Cap Rate with Upside
01. EXECUTIVE SUMMARY
Property Details:
▪ Prime location in Inglewood, surrounded by major
regional development projects and positioned at the
center of an exciting growth story
▪ Steps from Signalized Corner at Manchester Blvd. and
N Oak Street
▪ Multiple Tenants paying NNN leases
▪ 100% Leased with Two Credit Tenants
▪ 4.3% Cap Rate
Investment Highlights:
We are pleased to offer 605-619 W Manchester Blvd in Inglewood, California. A trophy property at an incredible
location for a 4.3% cap rate with attractive upside potential through Roscoe’s House of Chicken and Waffles parking
situation (see Rent Roll page for more details). Nearby, a brand-new stadium will be Los Angeles’ home for entertainment
and sports, where 2 football teams, the Rams and Chargers, and a basketball team, the Clippers, converge. In addition, only
five minutes away from this exciting investment opportunity, the “Fabulous” Forum, Los Angeles’ premier music venue, hosts
the best music and entertainment acts in the country.
Investing in this strip center is a rare opportunity because of its prime location that is surrounded by rapid
development and major regional projects, positioning the area to be the center of a very exciting growth story. Accessibility is
easy using 3 major popular connections: 405 Freeway, Manchester Boulevard* and Florence Ave.
In addition, the five current tenants generate stable cash flows for the property from a diversified mix of businesses. A
large parking lot generates extra cash flow from the neighboring Roscoe owner, adding to the attractive profile of the
investment property.
▪ Lot SQFT: 28,775
▪ Building SQFT: 6,578
▪ Built in 1975 and renovated in 2019
▪ Parking striped for a large capacity of vehicles
▪ Between Starbucks and Roscoe's House of Chicken
and Waffles
▪ Located blocks away from the 405 freeway as well as
in close proximity to LAX, downtown LA, a number of
other freeways, major boulevards, and popular
landmarks
* Note: Manchester Boulevard is the main artery connecting to the football stadium, LA Clippers arena and the Forum.
02. THE CITY OF INGLEWOOD
▪ Between major sport events, concerts, award events, as well as the renovation of the area including, a whole new neighborhoodthat will hold shops, restaurants, a hotel, parks, an artificial lake, 2,500 housing units, and a new light rail stop, the area isdeveloping at a rapid pace.
▪ The Los Angeles Stadium and Entertainment District at Hollywood Park is transforming the site of the former Hollywood ParkRacetrack to a year-round sports and entertainment destination for the enjoyment of people throughout Southern California aswell as visitors to the region. This will be the new “must-see” entertainment destination and gathering spot in the center of theLos Angeles basin.
▪ The brand new $2.6B stadium being built will be the future home of the Los Angeles Rams, Chargers, and Super Bowl LVI.Additionally, the Los Angeles Clippers will have their new arena in Inglewood by 2024. With the ability to host Super Bowls,Final Fours, concerts, and the 2024 Summer Olympics, the stadium will bring additional revenue into Inglewood and the GreaterLos Angeles area.
▪ Plans for the district include:
▪ 70,000 seat open air stadium, expandable up to 100,000 seats
▪ 6,000-seat performing arts venue
▪ 780,000 square feet of office space
▪ 890,000 square feet of retail space
▪ 300 hotel rooms
▪ 2,500 modern residences
▪ Approximately 25 acres of public parks, open space, pedestrian walkways and bicycle paths
▪ Metro Station (Light Rail) will be completed in 2019. The LAX/Inglewood transit line will lessen parking requirements and makedevelopment more achievable.
▪ The city is offering “density bonuses”, enticing developers to build taller and larger buildings.
“The City of Inglewood is undergoing an unprecedented
period of renewal and redevelopment spearheaded by the
current Administration, local stakeholders, and national
business ventures that invested billions of dollars to develop
locations within the City.” PR News
605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD
POPULATION
1 MILE 3 MILES 5 MILES
2024 Projection: 38,447 254,759 790,862
2019 Estimate: 38,116 251,515 781,336
Pop Growth 2019-2024: 0.87% 1.29% 1.22%
HOUSEHOLD & INCOME
1 MILE 3 MILES 5 MILES
2019 Estimate: 13,166 88,017 278,794
Growth 2019-2024: 0.52% 1.63% 1.30%
2019 Median Household Income 47,959 57,735 56,546
TRAFFIC COUNT
TRAFFIC VOLUME
W Manchester Blvd S Oak St 33,089
W Manchester Blvd S la Cienega Blvd 20,466
W Florence Ave N Oak St 23,279
03. DEMOGRAPHICS
605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD04. REGIONAL MAP
605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD05. AERIAL MAP
605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD06. RENT ROLL
% Monthly Renewal Options
Square Bldg Lease Dates Rent per Total Rent Total Rent Changes Changes LeaseAnd Option Year
Tenant Name Suite Feet Share Comm. Exp. Sq. Ft. Per Month Per Year on to Type Rental Information
Sprint 619 1,441 21.9% 12/18/17 12/17/27 $4.75 $6,845 $82,137 Dec-2023 $7,529.23 NNN (2) 5-year options
Maria's Rio Tacos 615 1,300 19.8% 8/01/17 8/31/22 $4.00 $5,200 $62,400 Sep-2022 $5,500.00 NNN(2) 5-year options
Lustful Hair 611 1,245 18.9% 8/01/19 7/31/24 $4.00 $4,980 $59,760 Jul-2019 $5,186.00 NNN
Quality Cleaners 609 1,292 19.6% 7/01/18 6/30/23 $4.00 $5,168 $62,016 Oct-2019 $5,178.34 NNN
Jamba Juice 605 1,300 19.8% 4/01/18 3/31/28 $4.00 $5,200 $62,400 May-2023 $5,356.00 NNN
Total 6,578 100% $4.16 $27,393 $328,713
Occupied Tenants: 5 Unoccupied Tenants: 0 Occupied GLA: 100.00% Unoccupied GLA: 0.00%
Additional Income
Total Rent
Per Month
Total Rent
Per Year
Roscoe’s Parking* $1,600 $19,200
Total Income $28,993 $347,913
* NOTES: Roscoe's House of Chicken and Waffles has no entrance to the Manchester Boulevard and has a very few parking spaces of its own. For the access
and the parking, Roscoe is paying only $1,600 a month. There is also a court order that states that Roscoe cannot use the access from the Manchester Boulevard
nor the parking; hence, creating an excellent opportunity for the next owner to substantially raise rents.
PROPERTY NAME
MARKETING TEAMSALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES
1
Annual Per SF
Occupancy 100%
NOTES
Property 100% Leased at Sale.
Tenants Lease Type
Close Of
Escrow:3/26/2019 Jay's Market NNN
Sales Price: $2,050,000 Pazzo Pizzeria
Price/SF: $400.39Korean BBQ
Restaurant
Year Built: 1975
14615-14627 CRENSHAW BLVD14615 Crenshaw Blvd, Gardena, CA, 90249
2
Annual Per SF
Occupancy 100%
NOTES
5 Units Retail Plaza on Inglewood Blvd., just north of the heavily
trafficked signalized intersection at 111th Street. Property features
high street visibility, monument signage opportunity, and ample
parking in large onsite lot.The buyer purchased the property
because she saw it as a great opportunity, there were no vacant
spaces at the time of the purchase. She mentioned that the
property was worth more than what she paid for.
Tenants
Close Of Escrow: 8/28/2018 Barberia Y Beauty
Sales Price: $800,000 Liz's Immigration
Price/SF: $179.05 Lupe's Locksmith
Year Built: 1990 New Vacation Travel
Rapid Auto
11034 S INGLEWOOD AVE11034 S Inglewood Ave, Inglewood, CA, 90304
605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD07. MARKET COMPARABLESSale Comparables:
3
Annual Per SF
Occupancy 100%
NOTES
Retail Strip Center with 13 Tenants.The subject property was fully
leased in which the sale included income from the billboard as
well at the time of sale. The property contains no deferred
maintenance. The motivation for the seller was their downleg in a
1031 exchange. The motivation for the buyer was an investment
to add to their portfolio.
Tenants Lease Type
Close Of
Escrow:7/17/2018
Farmers InsuranceNNN
Sales Price:$10,200,00
0
Lee Seung Jae
Price/SF: $474.79Lemon Tree Studio
CAP Rate: 4.1%Olympic Tobacco
Year Built: 1984Yeung H Kwon Lac
Omd
2897 W OLYMPIC BLVD2897 W Olympic Blvd, Los Angeles, CA, 90006
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES
4
Annual Per SF
Occupancy 100%
NOTES
The center has a mix of tenants which includes a 7-Eleven, a
bakery, cleaners, donuts, pharmacy, dental clinic, barber shop and
beauty salon. All leases are triple-net. The property features 35
parking spaces and great frontage and visibility. It is located on a
major signalized southwest corner of Glendale Avenue and Chevy
Chase Drive. This was the downleg in an exchange for the seller.
Tenants Lease Type
Close Of
Escrow:7/9/2018 7-Eleven NNN
Days On
Market:94 Boost Mobile
Sales Price: $7,150,000 Bakery
Price/SF: $815.19 Dentist
CAP Rate: 4.67% Perfume
Year Built: 1981 Cleaners
Beauty Salon
Barber Shop
220 E CHEVY CHASE DR220 E Chevy Chase Dr, Glendale, CA, 91205
5
Annual Per SF
Occupancy 100%
NOTES
At the point of sale the property was fully occupied. Both buyer
and seller executed a 1031 exchange.
Tenants Lease Type
Close Of
Escrow:8/10/2018 T-Mobile NNN
Days On
Market:140 7-Eleven
Sales Price: $2,386,576
Price/SF: $536.67
CAP Rate: 4.41%
Year Built: 1988
3658-3676 WEST 3RD STREET3658 W 3rd St, Los Angeles, CA, 90020
6
Annual Per SF
Occupancy 100%
NOTES
The property was confirmed to be 100% occupied at the time of
sale. It was reported sold with a Net Operating Income of
$111,219.00 and a Capitalization Rate of 3.40%. There was no
deferred maintenance required as the property was sold 'as-is'.
The escrow period was due to standard due diligence. The buyer
intends to continue operating this as an income generating
property.
Tenants
Days On Market: 141 Howe Mart
Sales Price: $3,300,000 Del Rey Optometry
Price/SF: $526.40 Playas Pita
CAP Rate: 3.4%
Year Built: 1977
8501-8511 PERSHING DR 8501 Pershing Dr, Playa Del Rey, CA, 90293
rentpropertyname1
rentpropertyaddress1
SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES
7
NOTES
Highly-visible 9 tenants neighborhood center located at the
signalized intersection of major thoroughfare Sepulveda
Boulevard and National Boulevard in the heart of West Los
Angeles. The property is 100% leased with multiple long-term
tenants, two income producing billboards, ATM, and newsstand.
Property is centrally located to Culver City, Marina Del Rey,
Venice, Santa Monica and West LA.
Tenants
On Market Adrimar Hair Salon
Days On Market: 98 Cash Express
List Price: $13,250,000 National News
Price/SF: $1,223.11 Thai Massage
CAP Rate: 5% Baja Bud's Mexican
Year Built: 1989 American Livescan &
Boba Time
Tobacco Cheaper
11201-11223 NATIONAL BLVD11201 National Blvd, Los Angeles, CA, 90064
8
NOTES
Great Opportunity to own this strip mall at the NE corner of Pacific
Coast Highway and Western Ave in Harbor City. Rare South Bay
multi-tenant strip center located at a busy intersection of 2 major
arteries in Harbor City
Building in great condition anchored by great tenants including T-
Mobile, Game Stop, Advance America and WingStop. Highly
visible corner retail property with heavy traffic on both sides of the
corner building and busiest retail
Tenants Lease Type
On Market T-Mobile NNN
Days On
Market:79 Game Stop
List Price: $4,360,000 Advance America
Price/SF: $837.82 WingStop
CAP Rate: 4%
Year Built: 2003
1685 PACIFIC COAST HWY1685 Pacific Coast Hwy, Harbor City, CA, 90710
9
NOTES
Annual Gross Income : $136,837.92
NNN: $35,208.00
Operating Expense: ($41,937.38)
NOI: $130,108.54
Tenants Lease Type
On Market Rikas MG/NNN
List Price: $3,100,000 El Palmer
Price/SF: $773.84 Fratelli Pizza
CAP Rate: 4.2% Sphinx Smoke Shop
Year Built: 1985
3553-3559 W 3RD ST3553 W 3rd St, Los Angeles, CA, 90020
08. FINANCIAL ANALYSIS
Income
Scheduled Base Rental Income 328,713
Expense Reimbursement Income
CAM 23,174
Real Estate Taxes 103,936
Total Reimbursement Income $127,110
Roscoe's Parking Lot 19,200
Effective Gross Revenue $475,023
Operating Expenses
Common Area Maintenance
(CAM)23,174
Real Estate Taxes 103,936
Total
Expenses$127,110
Net Operating Income $347,913
Debt Service 277,454
Net Cash Flow After Debt Service 70,459
Principal Reduction 79,236
Total Return $152,224
Financing 1st Loan
Loan Amount $4,700,000
Loan Type New
Interest Rate 4.25%
Amortization 30 Years
Year Due 2029Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation representative.
4.3% $8,100,000
SALE PRICECAP RATE
605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD09. PROPERTY PHOTOS
605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD605, 609, 611, 613, 615 AND 619 W MANCHESTER BLVD
MANCHESTER STRIP CENTER605-619 W Manchester Blvd • Inglewood, CA 90301
Presented by:
Ingrid Farias-Eisner, DRE # 02071328
(310) 909-5449
Laura Alice Scaturro, DRE # 01942167
(310) 909-5472