ming & wible center · ming & wible center is an exceptional opportunity to acquire a...

O F F E R I N G M E M O R A N D U M

Bakersf ie ld , CA 93304

MING & WIBLE CENTER3214-3216 MING AVENUE

Bakersfield Overview Retail Market Overview

Area Overview12

Offering SummaryInvestment SummaryInvestment Highlights

Executive Summary2Local Area Map Site PlanPhysical DescriptionProperty Photos

Property Description6

Rent RollInvestment Summary

Financial Overview16

Table of Contents

Exclusively Listed By

Senior Vice President Retail Capital MarketsLic. 01302079Mobile +1 949 275 8807Direct +1 949 724 [email protected]

Charley Simpson

Associate Vice President Retail Capital MarketsLic. 01987844Mobile +1 760 685 6873Direct +1 949 724 [email protected]

Caitlin Zirpolo


Jordan Gomez

Associate Vice President Retail Capital MarketsNY Lic. 10401244229Mobile +1 917 515 9975Direct +1 949 724 [email protected]

David Maloy

Executive Vice President Retail Capital MarketsLic. 01890271Mobile +1 858 752 3078Direct +1 949 724 5690 [email protected]

El Warner | Team Lead

Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 1Col l iers In ternat iona l

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2 Co l l iers In ternat iona l

EXECUTIVEsummary

Colliers Retail Capital Markets Team is pleased to present

the fee simple sale of Ming & Wible Center, a 30,708 SF

neighborhood retail center located directly across from the

Valley Plaza Mall (140 specialty stores) which is the largest

shopping destination in the San Joaquin Valley.

Ming & Wible Center is centrally located at the intersection

of the 99 Freeway and Ming Avenue (187,144 VPD).

Strategically situated along Bakersfield’s major retail

corridor, Ming & Wible Center is surrounded by many of the

largest retailers in the world which include Target, Macy’s,

JCPenney, Apple, Forever 21, TJ Maxx, Ross, Marshalls,

CVS Pharmacy and many others. Shadow anchored to the

largest specialty and luxury-oriented retail destination

in Bakersfield, this investment offering is currently 100%

occupied by four long-standing, quality tenants including

Big 5 Sporting Goods, Mattress Firm, Eyemart Express and

The Corner Pocket.

Ming & Wible Center is an exceptional opportunity to

acquire a stable cash flow with attractive growth in the

revenue from fixed annual increases and is being offered

free and clear of any debt. Combine this with historically

low interest rates which will generate double digit leveraged

returns for many years to come.

Asking Price $6,875,000

Total GLA 30,708 SF

Occupancy 100%

In-Place NOI $473,031

Price PSF $223.88 PSF

In-Place Cap-Rate 6.88%

Leveraged Return 12.69%

Total Land Area 87,555 SF (2.01 Acres)

Financing No Existing Debt – Loan Quotes Available

Investment Summary

Col l iers In ternat iona l Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 3

Investment Highlights

Long term tenants committed to the location with low replaceable rents

Irreplaceable main & main location along the 99 Freeway directly off the Ming Avenue on/off ramp in the heart of Bakersfield, California.

Big 5 Sporting Goods occupies 41.1% of the GLA and is only paying $0.92/SF/month NNN which is well below market and provides significant future upside for a prospective investor.

Anchored by Big 5 Sporting Goods (NASDAQ: BGVF) which stock price was up +25% end of July 2020 due to same store sales increasing 31.9% for fiscal July period.

Col l iers In ternat iona l

Impressive historical occupancy with three of the four tenants occupying their space for over 10 years including Big 5 Sporting Goods (44 years), The Corner Pocket (32 years) and Eyemart Express (11 years).

+10YEARS

Over 76% of the existing tenancy survived the last recession, providing a new investor with security of investment and “peace of mind” through turbulent times.

Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 4

New financing projected to provide a Day 1 return of 12.69%.

Prominently located at the heavily trafficked intersection of the 99 Freeway and Ming Avenue which see a combined 187,144 VPD.

Strategically situated across from the Valley Plaza Mall along Bakersfield’s premier retail corridor (Ming Avenue) which features major retailer brands such as Apple, AT&T, Express, Forever 21, H&M, JC Penney, Macy’s, Old Navy, Sephora, Target, T-Mobile, Verizon and 128 other stores.

30,708 SF offering that is 100% leased to a synergistic mix of tenants including Big 5 Sporting Goods, Mattress Firm and Eyemart Express.

Offered at a low price per square foot of $224

Attractive revenue growth with fixed rental increases and all tenants operating NNN leases at below market rents.

Ming Avenue - 34,144 VPD

Wible Road - 17,241 VPD

99 Freeway - 153,000 VPD

ON RAMP

ON RAMP

OFF RAMP

OFF RAMP

OFF R

AMP

ON RAMP

OFF RAMP



IMAX

VALLEY PLAZA MALL

FEATURING OVER ONE MILLION SQUARE FEET(140 specialty stores) of the largest selection of exclusive stores

and specialty brands in the market

Col l iers In ternat iona l Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 5


PROPERTYdescr ip t i on


Local Area Map

BAKERSFIELD COLLEGE

BAKERSFIELD MEMORIAL HOSPITAL

KERN COUNTY FAIR

KERN MEDICAL CENTER

KERN RIVER

EAST BAKERSFIELD HIGH SCHOOL




Site Plan


SUITE TENANT SF

3214B Big 5 Sporting Goods 12,612

3216B The Corner Pocket 6,000

3216C Sleep Train 7,096

3216D Eyemart Express 5,000


NAP

3216B

3214B 3216C 3216D

Wible Road - 17,241 VPD

Min

g Av

enue

- 34

,144

VPD

99 Freeway - 153,000 VPD

ON RAMP

ON R

AMP

OFF RAMP

OFF RAMP

OFF RAMP

ON RAMP

OFF RAMP

OFF RAMP

OFF RAMP

ON RAMP



Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 9Col l iers In ternat iona l

Physical DescriptionTotal GLA 30,708 SF

Year Built 1973

Address 3214-3216 Ming Avenue, Bakersfield, CA 93304

County Kern County

Number of Buildings One Single Story Multi-Tenant Building

Total Land Area 87,555 SF (2.01 Acres)

Type of Ownership Fee Simple

Parcels One Parcel (148-270-30-00-3)

Zoning C-2; Commercial Retail Stores

Cross Streets Ming Avenue - 34,144 VPDWible Road - 17,241 VPD99 Freeway - 153,000 VPD

North The subject is bordered to the north by the 99 Freeway easterly on/off ramp and a 135,000 SF Furniture City anchored shopping center with a freestanding David’s Bridal and other service-oriented retail.

South The Valley Plaza Mall is located directly south of the subject property and features over one million square feet (140 specialty stores) of the largest selection of exclusive stores and specialty brands in the market.

East Additional retail plazas featuring national brands such as JOANN Fabrics, Marshalls, Michaels, La-Z-Boy, Men’s Wearhouse, Jack in the Box, Carl’s Jr., and several others are located east of the subject property.

West The 99 Freeway (153,000 VPD) runs directly east of the property, as well as additional retail plazas featuring more national brands such as Home Depot, Food Maxx, T.J. Maxx, Ross, 99 Cents Only Stors, PetSmart, Guitar Center, O’Reilly Auto Parts, and several others

Col l iers In ternat iona l Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 1 0


AREAoverv iew

Bakersfield OverviewSituated within Kern County, Bakersfield covers

about 151-square-miles of land and is one of the

Central Valley’s largest metros, with more than

380,000 residents. Nestled between the southern

end of the San Joaquin Valley and the Central

Valley region, Bakersfield is known as a hub for

both agriculture and energy production.

Employment is growing at around 2.3% year-over-

year and has marginally outperformed the national

benchmark over the past two years. Moreover,

income growth, after steadily falling in conjunction

with oil prices, rose to almost 3% in 2018. Median

household income is roughly $57,000 per year.

Bakersfield transportation is easily accessible and

includes two of California’s main logistics routes,

Interstate 5 and Highway 99. The community

has proximity to the state’s biggest ports in Los

Angeles and Oakland, as well as more than 40

million consumers within a four-hour drive.

POPULATION

2025 Projection 21,270 150,990 335,197

2020 Estimate 20,830 147,941 323,957

Growth 2020-2025 2.10% 2.10% 3.50%

Growth 2010-2025 4.60% 4.30% 11.6%

HOUSEHOLDS

2025 Projection 6,940 48,409 102,490

2020 Estimate 6,859 47,710 99,800

Growth 2020-2025 1.20% 1.50% 2.70%

Growth 2010-2025 1.20% 2.60% 8.90%

INCOME

Average Household Income $49,162 $58,382 $66,188

Median Household Income $37,503 $42,249 $66,188


1

MILE

3

MILES BAKERFIELD

Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 1 3

Retail demand in Bakersfield has been steady in recent years, with that trend continuing to

start 2020. The vacancy rate fell from 9.1% in Q1 2019 to 6.6% in Q1 2020, a likely result of the

expansion plans of major retailers such as Walmart and Target backfilling many of the big box

vacancies in the market.

Retail rents grew by 0.9% over the past four quarters, with the average asking rent of $16.90/SF.

When compared to neighboring metros Fresno and Visalia, these are about 10% higher and have

seen a steadier increase over the same five year period.

The Subject Property is located just north of the Valley Plaza Mall, Bakersfield’s largest retail

property in the area, featuring an astounding 140 specialty retailers, including exclusive stores

such as Apple, Sephora, Michael Kors, Garage, Victoria’s Secret, Hollister, H&M, Urban Decay

and Miniso. Equipped with a 16-screen Reading Cinemas and delicious dining options like Texas

Roadhouse, Lucille’s Smokehouse BBQ and Red Robin, this is a preferred family-friendly shopping

destination in central California.

Co l l iers In ternat iona l

Retail Market Overview

Submarket

Bakersfield, CA

Total Retail Inventory

11,200,000 SF

Vacancy Rate

6.5% as of Q1 2020

Average Asking Rate

$16.90/SF/Year as of Q1 2020

Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 1 4




VALLEY PLAZA MALL VALLEY PLAZA MALL 140 Specialty Retailers


FINANCIALoverv iew

Unit # Tenant Lease Start Lease EndContract Rental Rate Rent Per SF # of Years

ExpensesSF % of GLA Year Month Year Month Rent Increases Tenant

3214B Big 5 Sporting Goods Mar-76 Jan-29 12,612 41.1% $138,732 $11,561 $11.00 $0.92

2/1/24: $12,718 Option 5: $13,989 Option 6: $15,388 Option 7: $16,927

44 NNN

Comments Tenant has three 5-year options remaining.

3216B The Corner Pocket May-88 Sep-21 6,000 19.5% $104,340 $8,695 $17.39 $1.45 32 NNN

Comments Tenant has no remaining options.

3216C Sleep Train Mar-13 Nov-28 7,096 23.1% $111,265 $9,272 $15.68 $1.31 12/1/23: $9,735 Option 1: $10,710 Option 2: 11,780

7 NNN

Comments Tenant has two 5-year options remaining.

3216D Eyemart Express Mar-09 Aug-26 5,000 16.3% $96,000 $8,000 $19.20 $1.60 Option 1: $8,960 Option 2: $9,856 11 NNN

Comments Tenant has two 5-year options remaining.

The Lamar Companies Jul-02 Dec-22 $12,000 $1,000 18

Comments Contractual signage income.

Totals 30,708 100.0% $462,337 $38,528 $15.06 $1.25

Rent Roll


Investment Summary


DEBT SUMMARY NEW LOAN

Loan Amount: $4,468,750

LTV (Initial DCF Valuation): 65%

Interest Rate: 3.75%

Fixed or Floating: Fixed

Loan Term: 7 Years

Amort Term: 25 Years

I/O Period: 2 Years

Loan Fee: Negotiable

PURCHASE SUMMARY

Purchase Price: $6,875,000

Purchase Price $/SF: $223.88

Net Rentable Area: 30,708

In Place NOI $473,031

In Place Cap Rate 6.88%

Cash on Cash $305,453

Cash on Cash Return 12.69%

IN PLACE INCOME & EXPENSE SUMMARY

Income Total

Base Rental Revenue $462,337

Percentage Rent Signage Fee $4,583

Net Rental Income $466,920

Expense Reimbursements $191,982

Effective Gross Income $658,902

Expenses Total Total

Real Estate Taxes $2.70 $83,000

Property Insurance $0.13 $3,986

CAM/R&M/Utilities $2.51 $77,188

Management 2.81% $18,540

Non-Reimbursable Expenses $0.10 $3,157

Operating Expenses $185,871

Net Operating Income $473,031

Asking Price $6,875,000

In Place Cap Rate 6.88%

New Debt $4,468,750

Required Equity $2,406,250

Debt Service $167,578

In Place Cash Flow $305,453

Cash on Cash Return 12.69%

99 Fr

eeway

- 153

,000 VPDOFF RAMP ON

RAM

P

OFF RAMP

OFF RAMP

ON RAMP

Wible R

oad -

17,24

1 VPD

Ming Avenue - 34,144 VPD




58 Freeway (99,055 VPD)

Colliers International 3 Park Plaza | Suite 1200

Irvine, CA 92614 | United States colliers.com/greaterlosangeles

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2020 All rights reserved.

Senior Vice President Retail Capital MarketsLic. 01302079Mobile +1 949 275 8807Direct +1 949 724 [email protected]

Charley Simpson


Caitlin Zirpolo


Jordan Gomez

Associate Vice President Retail Capital MarketsNY Lic. 10401244229Mobile +1 917 515 9975Direct +1 949 724 [email protected]

David Maloy

Executive Vice President Retail Capital MarketsLic. 01890271Mobile +1 858 752 3078Direct +1 949 724 5690 [email protected]

El Warner | Team Lead

http://colliers.com/greaterlosangeles

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