offering memorandum - loopnet...contained herein is not a substitute for a thorough due diligence...

1 | Lee & Associates Orange

JOHN [email protected] 714.564.7183

1004 W. Taft Avenue, Suite 150 | Orange, CA 9286775 | 714-647-9100 | LeeOrange.com

ABSOLUTE NNN SINGLE-TENANT FOR SALE

OFFERING MEMORANDUMVALLEY CENTRAL POWER CENTER

44402 VALLEY CENTRAL WAY | LANCASTER, CALIFORNIA 92536

PRESENTED BY:

https://www.facebook.com/LeeAssociates

https://twitter.com/leeassocorange

https://www.linkedin.com/company/lee&associates%E2%80%93orange

Lee & Associates Commercial Real Estate Services, Inc. - Orange (”Agent“) has been engaged as the Exclusive Agent for the sale or lease by the Owner/Lessor of the Property. The Property is being offered for sale or for lease in an "As Is, Where Is" condition, and Seller/Lessor and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum.

The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers or lessees of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller/Lessor.

The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the Confidentiality Agreement furnished by Agent prior to delivery of this Offering Memorandum.

The enclosed materials are being provided solely to facilitate the prospective investor's or prospective Lessee's own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller/Lessor or any of their respective representatives, affiliates, offers, employees, shareholders, partners or directors, as to the accuracy or completeness of the information contained herein.

All interested parties shall make their own measurements of the property or engage a third party to verify any and all measurements of the property contained herein. This marketing brochure has been prepared to provide summary unverified information to prospective purchasers or lessees, and to establish only a preliminary level of interest in the subject Property. The information contained herein is not a substitute for a thorough due diligence investigation. Lee & Associations Commercial Real Estate Services, Inc. - Orange has not made any investigation and makes no warranty or representation with respect to the income or expenses for the subject Property, the size and square footage of the Property and improvements, the presence or absence of contaminating substances, PCB's, or asbestos.

The compliance with Local, County, State and 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. All potential buyers/lessees must take appropriate measures to verify all of the information set forth herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein.

Neither the Agent nor the Seller/Lessor shall have any liability whatsoever for the accuracy of completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projects, and conclusions without reliance upon the material contained herein.

Seller/Lessor reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for Sale and/or Lease at any time and for any reason. Seller/Lessor and Agent expressly reserve the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice.

This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale, lease or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller/Lessor. Seller/Lessor shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase or lease the Property unless and until the binding written agreement for the purchase or lease of the Property has been fully executed, delivered, and approved by Seller/Lessor and any conditions to Seller's/ Lessor's obligations thereunder have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller/Lessor promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller/Lessor or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller/Lessor or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipient(s) to Lee & Associates Commercial Real Estate Services, Inc. - Orange.

By accepting this marketing brochure, you agree to release Lee & Associates Commercial Real Estate Services, Inc. - Orange, and the representing agent(s), and hold them harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this Property.

Lee & Associates Commercial Real Estate Services, Inc - Orange | 2

OFFERING MEMORANDUM

44402 Valley Central Way, Lancaster, CA 92536ABSOLUTE NNN SINGLE-TENANT FOR SALE

Confidentiality Agreement


LEE & ASSOCIATES COMMERCIAL REALESTATE SERVICES, INC - ORANGE

1004 West Taft AvenueOrange, CA92865

P 714.647.9100W LeeOrange.com

All information furnished regarding property for sale,rental or financing is from sources deemed reliable, butno warranty or representation is made to the accuracythereof and same is submitted to errors, omissions,change of price, rental or other conditions prior to sale,lease or financing or withdrawal without notice. Noliability of any kind is to be imposed on the broker herein.


PRESENTED BY:

John [email protected]

TABLE OF CONTENTS

I: PROPERTY OVERVIEW

5Property Overview

6Valley Central Power Center Site Plan

7Valley Central Power Center (715,000 SF)

8Property Aerial

9Area Map

10Property Photographs

11Property Photographs

II: FINANCIAL OVERVIEW

13Rent Schedule

III: SOLD COMPARABLES

15SOLD Comparables

16SOLD Comparables (Continued)



19Back Page

BROKER OPINION OF VALUE

44402 Valley Central Way, Lancaster, CA 92536ABSOLUTE NNN SINGLE-TENANT FOR SALE

Table of Contents

OFFERING MEMORANDUMOFFERING MEMORANDUMEL POLLO LOCO (ABSOLUTE NNN)

44402 VALLEY CENTRAL WAY, LANCASTER, CA 92536

LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICES, INC - ORANGEPROPERTY OVERVIEWPROPERTY OVERVIEWI:I:


INVESTMENT HIGHLIGHTS• Irreplaceable location • Lancaster Power Center Location

(Open Shopping Mall location with 4,016 parking spaces)• Total 715,000 SF with 31 stores inclulding Walmart, Food 4 Less, 99 Cents

Only Store, PetSmart, Marshalls, Michaels, Starbucks, Carl’s Jr, Party City, Chuck E. Cheese’s, Lens Crafters, Cinemark

• One of the top sales EPL stores with personal guaranty • Tenant’s Perfect payment history available • Over $400,000 Tenant Improvements completed in February 2018• No Landlord Responsibility• Extremely Strong Store Sales and

Very High Net Worth Personal Guarantor

Property Address: 44402 Valley Central Way Lancaster, CA 92536Building Size: 2,607 SFLand Size: 26,949 SFYear Built: 1989Access: Freeway 14 Off-Ramp Location

Long-Term NNN Lease Retail InvestmentFreestanding Drive-Thru RestaurantApproximately 51,000 (Highway 14) Vehicles Per DayBuilt 1989APN 3153-051-005

INVESTMENT OVERVIEWOFFERED FOR $3,630,000• CAP Rate: 5.36%• Lease Commencement: May 13, 2011• Lease Expiration: May 12, 2031• Remaining Lease Term: 13 Years• Rent Increase: 8% Increase every 5 Years• Fixed increase for 20-Year Lease Term • Fair market value increase at 21st year and 8% increase

every 5 years thereafter • Monthly Rent: $16,200 per month• Annual Rent: $194,400 per year


OFFERING MEMORANDUM

44402 Valley Central Way, Lancaster, CA 92536EL POLLO LOCO (ABSOLUTE NNN)

Property Overview

51,000 Cars Per Day

SITE


OFFERING MEMORANDUM


Valley Central Power Center Site Plan


OFFERING MEMORANDUM


Valley Central Power Center (715,000 SF)


OFFERING MEMORANDUM


Property Aerial


OFFERING MEMORANDUM


Area Map


OFFERING MEMORANDUM


Property Photographs



LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICES, INC - ORANGEFINANCIAL OVERVIEWFINANCIAL OVERVIEWII:II:


BASE RENT YEARS MONTHLY RENT ANNUAL RENT

Primary Term: 1 - 5 $15,000.00 $180,000.00

5 - 10 $16,200.00 $194,400.0011 - 15 $17,.496.00 $209.952.00

16 - 20 $18,895.68 $226,7478.16

First Option Term (if exercised)

21 - 25 Fair Market Rent Fair Market Rent

Second Option Term 26 - 30 108% of Monthly Rent for the First Option Term

108% of Annual Rent for the First Option Term

Third Option Term 31 - 35 108% of Monthly Rent for the Second Option Term

108% of Annual Rent for the Second Option Term

Fourth Option Term 36 - 40 108% of Monthly Rent for the Third Option Term

108% of Annual Rent for the Third Option Term


OFFERING MEMORANDUM


Rent Schedule



LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICES, INC - ORANGESOLD COMPARABLESSOLD COMPARABLESIII:III:


1 5716 Atlantic Blvd - Starbucks SOLD

6313-009-001

Maywood, CA 90270Sale Date:

Pro Forma CapRate:

Price/SF:Sale Price:

Actual Cap Rate:

$2,148.89$3,868,000 - Confirmed11/02/2017 (156 days on mkt) Bldg Type:

Year Built/Age:RBA:

-3.99%

Parcel No:

Confirmed

RetailFreestandingBuilt 20171,800 SF

Los Angeles County

Research Status:Sale Conditions: Investment Triple NetComp ID: 4054981

2 11412 Fashion Ct - Starbucks SOLD

0357-561-72

Hesperia, CA 92344Sale Date:

Pro Forma CapRate:


Actual Cap Rate:

$1,595.00$3,190,00002/02/2018 (44 days on mkt) Bldg Type:

Year Built/Age:RBA:

-4.00%

Parcel No:

In Progress


San Bernardino County

Research Status:Sale Conditions: -Comp ID: 4127613

3 2701 Fletcher Dr SOLD

5436-020-004, 5436-020-024, 5436-020-025,5436-020-026 [Partial List]

Los Angeles, CA 90039Sale Date:

Pro Forma CapRate:


Actual Cap Rate:

$650.66$3,550,000 - Full Value08/10/2017 Bldg Type:

Year Built/Age:RBA:

--

Parcel No:

Full Value

RetailFreestandingBuilt 1959 Age: 585,456 SF

Los Angeles County


4 10520 Garden Grove Blvd SOLD

099-051-27, 099-051-52

Garden Grove, CA 92843Sale Date:

Pro Forma CapRate:


Actual Cap Rate:

$185.70$3,700,000 - Confirmed05/01/2017 (76 days on mkt) Bldg Type:

Year Built/Age:RBA:

--

Parcel No:

Confirmed


Orange County

Research Status:Sale Conditions: High Vacancy PropertyComp ID: 3901336

5 537 S Glendora Ave - West Covina Cleaners SOLD

8475-007-020

West Covina, CA 91790Sale Date:

Pro Forma CapRate:


Actual Cap Rate:


Year Built/Age:RBA:

-7.02%

Parcel No:

Confirmed


Los Angeles County

Research Status:Sale Conditions: 1031 ExchangeComp ID: 3808143

6 2215 Harbor Blvd SOLD

422-193-23

Costa Mesa, CA 92627Sale Date:

Pro Forma CapRate:


Actual Cap Rate:


Year Built/Age:RBA:

--

Parcel No:

Confirmed


Orange County


Copyrighted report licensed to Lee & Associates Commercial Real Estate Service - 444275. 2/26/2018

Page 1

7 26655 Highland Ave SOLD

1191-241-36, 1191-241-38

Highland, CA 92346Sale Date:

Pro Forma CapRate:


Actual Cap Rate:

$33.52$3,800,000 - Confirmed08/23/2017 (2,254 days on mkt) Bldg Type:

Year Built/Age:RBA:

--

Parcel No:

Confirmed


San Bernardino County

Research Status:Sale Conditions: Court Appointed Sale, High Vacancy PropertyComp ID: 3997177

8 2639 La Cienega Blvd SOLD

5065-006-001

Los Angeles, CA 90034Sale Date:

Pro Forma CapRate:


Actual Cap Rate:

$871.67$3,600,000 - Full Value10/06/2017 (143 days on mkt) Bldg Type:

Year Built/Age:RBA:

--

Parcel No:

Full Value


Los Angeles County


9 12622 Long Beach Blvd - Del Taco SOLD

6177-003-036

Lynwood, CA 90262Sale Date:

Pro Forma CapRate:


Actual Cap Rate:


Year Built/Age:RBA:

-4.40%

Parcel No:

Confirmed

RetailFast FoodBuilt 1965 Age: 522,420 SF

Los Angeles County

Research Status:Sale Conditions: 1031 Exchange, Investment Triple NetComp ID: 4109031

10 10000 Magnolia Ave SOLD

234-050-001

Riverside, CA 92503Sale Date:

Pro Forma CapRate:


Actual Cap Rate:


Year Built/Age:RBA:

--

Parcel No:

Confirmed

RetailFreestanding-22,000 SF

Riverside County


11 3818-3824 Ocean View Blvd SOLD

5807-009-016

Montrose, CA 91020Sale Date:

Pro Forma CapRate:


Actual Cap Rate:

$489.88$3,825,000 - Full Value11/14/2017 (130 days on mkt) Bldg Type:

Year Built/Age:RBA:

-4.59%

Parcel No:

Full Value


Los Angeles County


12 14322 Pioneer Blvd SOLD

8073-009-026

Norwalk, CA 90650Sale Date:

Pro Forma CapRate:


Actual Cap Rate:


Year Built/Age:RBA:

-4.15%

Parcel No:

Confirmed


Los Angeles County



Page 2


OFFERING MEMORANDUM


SOLD Comparables

13 E Rosecrans Ave - Starbucks SOLD

6268-004-026

Paramount, CA 90723Sale Date:

Pro Forma CapRate:


Actual Cap Rate:


Year Built/Age:RBA:

-4.16%

Parcel No:

Confirmed

RetailFast FoodBuilt 1963 Age: 542,638 SF

Los Angeles County


14 19439 Ventura Blvd - Starbucks Drive-Thru - Tarzana SOLD

2163-001-014

Tarzana, CA 91356Sale Date:

Pro Forma CapRate:


Actual Cap Rate:


Year Built/Age:RBA:

-3.92%

Parcel No:

Confirmed

RetailFreestandingBuilt 2007 Age: 10832 SF

Los Angeles County



Page 3

14Sale PriceCenter SizePrice per SFActual Cap RateDays on MarketSale Price to Asking Price Ratio 86.59%

$3,190,000832 SF$33.523.92%

44

$3,641,64314,858 SF

$245.094.53%

41294.58%

$3,650,0004,793 SF$761.17

4.16%182

95.77%

$4,000,000113,357 SF

$4,326.927.02%2,254

100.00%

14148

1311

Totals

Sold Transactions $50,983,000 Total Sales Transactions:Total Sales Volume: 14

Survey Criteria

basic criteria: Type of Property - Retail; Secondary Type - Fast Food, Freestanding; Sale Price - $3,000,000 -$4,000,000; Sale Date - from 1/1/2017; Sale Status - Under Contract/Pending, Sold; Return and Search onPortfolio Sales as Individual Properties - Yes; Exclude Non-Arms Length Comps - Yes; - Exclude All PublicRecord Sales

geography criteria: County - Los Angeles, CA; Orange, CA; Riverside, CA; San Bernardino, CA

additional criteria: - * This result set has been amended with criteria to add and/or remove records.

Comps Statistics

CountHighMedianAverageLow

Quick Stats Report


Page 4


OFFERING MEMORANDUM


SOLD Comparables (continued)

004004

$0$0

$15,200,000$0$0

$15,200,000

0.0%0.0%

100.0%0.0%0.0%

100.0%

0.0%0.0%

100.0%0.0%0.0%

100.0%

1Q17: 1/1/2017-3/31/2017

$500k - $1.49MLess than $500k

$1.5M - $4.9M$5M - $9.9M$10M and aboveTotals

# of Records % of Records Dollar Volume % of Dollar Volume

001001

$0$0

$3,700,000$0$0

$3,700,000

0.0%0.0%

100.0%0.0%0.0%

100.0%

0.0%0.0%

100.0%0.0%0.0%

100.0%

2Q17: 4/1/2017-6/30/2017

$500k - $1.49MLess than $500k



002002

$0$0

$7,350,000$0$0

$7,350,000

0.0%0.0%

100.0%0.0%0.0%

100.0%

0.0%0.0%

100.0%0.0%0.0%

100.0%

3Q17: 7/1/2017-9/30/2017

$500k - $1.49MLess than $500k



006006

$0$0

$21,543,000$0$0

$21,543,000

0.0%0.0%

100.0%0.0%0.0%

100.0%

0.0%0.0%

100.0%0.0%0.0%

100.0%

4Q17: 10/1/2017-12/31/2017

$500k - $1.49MLess than $500k



001001

$0$0

$3,190,000$0$0

$3,190,000

0.0%0.0%

100.0%0.0%0.0%

100.0%

0.0%0.0%

100.0%0.0%0.0%

100.0%

1Q18: 1/1/2018-3/31/2018

$500k - $1.49MLess than $500k



Sale Distribution by Price


Page 5

00

1400

14

$0$0

$50,983,000$0$0

$50,983,000

0.0%0.0%

100.0%0.0%0.0%

100.0%

0.0%0.0%

100.0%0.0%0.0%

100.0%

Total

Totals$10M and above$5M - $9.9M$1.5M - $4.9M$500k - $1.49MLess than $500k

% of Dollar VolumeDollar Volume% of Records# of Records

Survey Criteria

basic criteria: Type of Property - Retail; Secondary Type - Fast Food, Freestanding; Sale Price - $3,000,000 -$4,000,000; Sale Date - from 1/1/2017; Sale Status - Under Contract/Pending, Sold; Return and Search onPortfolio Sales as Individual Properties - Yes; Exclude Non-Arms Length Comps - Yes; - Exclude All PublicRecord Salesgeography criteria: County - Los Angeles, CA; Orange, CA; Riverside, CA; San Bernardino, CAadditional criteria: - * This result set has been amended with criteria to add and/or remove records.

Sale Distribution by Price


Page 6


OFFERING MEMORANDUM



Dollar Volume # of Transactions

Cap Rate Average Price Per SF

Legend:

Current SurveySold Transactions 14

$50,983,000Number of TransactionsTotal Dollar Volume

208,01617.12

Total Bldg Square FeetTotal Land in Acres

745,747$3,641,643

Total Land in SFAverage Price

14,858$245.09

Average Number of SFAverage Price Per Bldg SF

$761.171.22

Median Price Per SFAverage Number of Acres

53,268-

Average Number of SF(Land)Average Price Per Unit

--

Median Price Per UnitAverage Number of Units

4.53%Actual Cap Rate

SoldTransactions

Time Interval - Quarterly

Report Time Frame: 1/1/2017 - 2/26/2018Sale Date: from 1/1/2017

Survey Criteria

basic criteria: Type of Property - Retail; Secondary Type - Fast Food, Freestanding; Sale Price - $3,000,000 -$4,000,000; Sale Date - from 1/1/2017; Sale Status - Under Contract/Pending, Sold; Return and Search onPortfolio Sales as Individual Properties - Yes; Exclude Non-Arms Length Comps - Yes; - Exclude All PublicRecord Sales

geography criteria: County - Los Angeles, CA; Orange, CA; Riverside, CA; San Bernardino, CA

additional criteria: - * This result set has been amended with criteria to add and/or remove records.

Trend Report


Page 7

Trend Report

Sold Transaction Sold Transaction

1Q17 01/1-3/31/17 3Q17 07/1-9/30/17

Number of TransactionsTotal Dollar VolumeTotal Bldg Square FeetTotal Land in AcresTotal Land in SFAverage PriceAverage Number of SFAverage Price Per Bldg SFMedian Price Per SFAverage Number of AcresAverage Number of SF(Land)Average Price Per UnitMedian Price Per UnitAverage Number of UnitsActual Cap Rate

2Q17 04/1-6/30/17 4Q17 10/1-12/31/17

Sold TransactionSold Transaction

4$15,200,000

28,2882.16

94,090$3,800,000

7,072$537.33$961.01

0.5423,522

---

5.11%

1$3,700,000

19,9251.21

52,708$3,700,000

19,925$185.70$185.70

1.2152,708

----

2$7,350,000

118,81310.41

453,460$3,675,000

59,407$61.86

$342.095.21

226,730----

6$21,543,000

38,9902.53

110,207$3,590,500

6,498$552.53

$1,138.320.42

18,368---

4.23%

1Q18 01/1-2/26/18

Number of TransactionsTotal Dollar VolumeTotal Bldg Square FeetTotal Land in AcresTotal Land in SFAverage PriceAverage Number of SFAverage Price Per Bldg SFMedian Price Per SFAverage Number of AcresAverage Number of SF(Land)Average Price Per UnitMedian Price Per UnitAverage Number of UnitsActual Cap Rate

Sold Transaction

1$3,190,000

2,0000.81

35,284$3,190,000

2,000$1,595.00$1,595.00

0.8135,284

---

4.00%


Page 8


OFFERING MEMORANDUM



All information furnished regarding property for sale, rental or financing is from sources deemed reliable,but no warranty or representation is made to the accuracy thereof and same is submitted to errors,omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawalwithout notice. No liability of any kind is to be imposed on the broker herein.

1004 West Taft Avenue, Suite 150 Orange, CA 92865 714.647.9100 LeeOrange.com

https://www.facebook.com/LeeAssociates/

https://twitter.com/LeeAssocOrange

https://www.linkedin.com/company/lee&associates%E2%80%93orange

offering memorandum - loopnet...contained herein is not a substitute for a thorough due diligence...

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