riverside county offering memorandum jurupa valley, ca · jurupa valley business center are...
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Jurupa Valley, CARIVERSIDE COUNTY
®
OFF
ERIN
G M
EMO
RAN
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M
y RARE SOUTHERN CALIFORNIA LOCATION y STRONG INTRINSIC VALUE: LOW IN PLACE RENT, CREATING A LOWER PRICE POINT AND BASIS y RELATIVELY NEW CONSTRUCTION, STATE-OF-THE-ART MEDICAL OFFICE y 15 YEAR LEASE WITH 10+ YEARS REMAINING AND 10% RENT INCREASES y STRONG FUNDAMENTALS – EXTREMELY LOW RENT PER SQUARE FOOT
Jurupa Valley, CARIVERSIDE COUNTY
®
TABLE OF CONTENTS
ALAZAR ASMAMAWE: [email protected]: 323-282-5559 C: 310-987-6922LAINVESTORS.COM
Exclusively Listed by,
INVESTMENTOFFERING & HIGHLIGHTS
03
THE OFFERING y Completed in 2015, a relatively new construction 9,600± sq. ft. state-of-the-art medical office building located in Jurupa Valley, California leased to
TOTAL RENAL CARE, INC., and guaranteed by DAVITA, INC. for 15 years.
y Price: $5,125,000 - 5.22% Cap Rate based on July 2020 rent.
LEASE / TENANT y Strong Fundamentals – extremely low annual rent per sq. ft. of $25.35 – Future rental upside.
y Strong Intrinsic Value: low in place rent, creating a lower price point and basis.
y 15-year net lease with 10+ years remaining with 10% rent increases every 5 years.
y DaVita, Inc. (NYSE:DVA) is one of the fastest growing companies on the Fortune 500 with a total stockholder’s equity of $4.69 billion and 2017 revenues of $10.88 billion.
y DaVita treats 42% of all dialysis patients in the United States.
y Warren Buffett’s Berkshire Hathaway owns a 23% stake in DaVita, it’s third largest holding by ownership percentage.
REAL ESTATE / AREA STRENGTHS y Rare core Southern California located single tenant net lease investment opportunity.
y Strategically located in a highly trafficked retail corridor. Directly east of the property is a Stater Bros.grocer anchored center that includes national retailers such as Dollar Tree, Subway, Kmart, Chase, Payless, MetroPCS, First Bank, Taco Bell, Jack in the Box, KFC and Round Table Pizza. Additional traffic to the area is also attributed by the Indian Hills Elementary School, which is to the south of this center.
y Neighboring medical tenants include Riverside Medical Clinic.
y Also located adjacent to the site is a retail center which contains AT&T, Firestone, Wells Fargo and Great Clips among others. Additionally, Rite Aid and the Jurupa Valley Business Center are directly across Limonite Avenue.
INVESTMENT OVERVIEW
LEASELeased to TOTAL RENAL CARE, INC., and guaranteed by DAVITA, INC. for 15 years from a rent commencement date July 4th, 2015 and termination date July 3, 2030. The initial annual base rent is $243,434.76 with rental increases of 10% every five years throughout the initial term. There are two five-year options to extend the lease with a rental rate of 95% of fair-market-value (FMV). The lease is net, with the tenant responsible for taxes, insurance and maintenance. Landlord is responsible for foundation, roof and structure.
THE OFFERINGAn extremely rare opportunity to purchase a relatively new construction Davita in Southern California at an extremely low Price/Sqft. Newly constructed Davitas in SoCal rent and trade for approximately twice as much on a per square foot basis. New owner will have the opportunity to potentially double both rent and value upon expiration of the first lease term.
IMPROVEMENTSRecently completed in 2015, a relatively new construction 9,600± sq. ft. state-of-the-art medical office building.
LOCATION8080 Limonite Avenue in Jurupa Valley, California.
LOT SIZEApproximately 0.32 acres.
04
Rent Cap Rate Year 1 - 5 $243,435 4.75%Year 6 - 10 $267,778 5.22%Year 11 - 15 $294,556 5.75%Year 16 - 20 (Option 1) 95% FMRV TBDYear 21 - 25 (Option 2) 95%FMRV TBD
RENT SCHEDULE CURRENT RENT PER SQ. FT.$25.35 per sq. ft. per year - $2.11 per sq. ft. per month
PRICE: $5,125,000 — 5.22% Cap Rate Based on Year 2020 Rent
4
9,000 SF
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DE anza plaza dr
05
SITE PLAN
SITE PLAN
06
TENANT INFORMATION
The tenant is a 100%-owned DaVita subsidiary, “Total Renal Care, Inc.” Financial statements are not available.
DAVITA, INC. (“DAVITA”), formerly DaVita Healthcare Partners, Inc., a Fortune 500® company, is a leading provider of kidney care in the United States, delivering dialysis services and education to patients with chronic kidney disease and end stage renal disease. It is listed on the NYSE: “DVA.” As of Dec 31, 2017, DaVita operated or provided administrative services at 2,747 outpatient dialysis centers in the United States. The company also operated 237 outpatient dialysis centers located in 11 countries outside the United States. It was founded in 1992 and is headquartered in Denver.
For the fiscal year ended December 31, 2017, total revenues were $10.9 billion and a net income was $664 million. Total stockholder’s equity was $4.69 billion.
DaVita controls more than 33% of the U.S. dialysis market and Fresenius Medical Center controls a similar portion. The rest of the market is fragmented, served by hospitals and much smaller chains. Davita is treating 42.2 percent of all dialysis patients in the United States. They have cornered a serious share of the market as the greater portion of the American population continues to age, the demand for DaVita’s services will only increase. This is fueling the construction of new dialysis centers. During 2017, 160 new centers were opened, representing a total net increase of approximately 6.8 percent from 2016.
DaVita is rated “BB” by Standard and Poor’s. More information can be obtained at www.davita.com
ABOUT THE TENANT
ABOUT THE GUARANTOR – DAVITA HEALTHCARE PARTNERS, INC.
AERIALS
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AERIALS
08
405
605 1515 10
21515
10
210
10
5
110
110
405
5
15
215
15
5
210 210
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60
60
91
74
7473
1
241
13355
261
91
241
57
6060
91
134
101
Lakewood
Bellflower
Norwalk
Costa Mesa
North Tustin
Orange
Villa Park
Lake Forest
TrabucoCanyon
Mission Viejo
Aliso Viejo
Ladera Ranch
Silverado
PerrisNuevo
RunningSprings
Crestline
Highland
Muscoy
BloomingtonColton
Grand Terrace
San BernardinoFontana
RanchoCucamonga
RedlandsYucaipa
Calimesa
Winchester
MenifeeCanyon Lake
Lake Elsinore
LakelandVillage
Wildomar
Murrieta
Temecula
Fallbrook
San Clemente
Dana Point
Homeland
El Cerrito
RiversideLa Habra
RowlandHeights
Compton
Anaheim
FullertonYorba Linda
Corona
Norco
Eastvale
Moreno Valley
Woodcrest
Westminster
HuntingtonBeach
FountainValley
NewportBeach
Santa Ana
Laguna Beach
Laguna Niguel
Seal Beach
Rossmoor
Cypress
La Palma
Long Beach
Signal HillLomita
Torrance
Irvine
DowneySouth Whittier
Whittier
Lynwood
East LosAngeles
Alhambra
San MarinoArcadia Duarte
MayflowerVillage
HuntingtonPark
Westmont
Gardena
La Crescenta-Montrose
Glendora
Mt Baldy
Glendale Pasadena
Altadena
Covina
West Covina
Valinda
La PuenteDiamond Bar
PomonaOntario
ClaremontSan Dimas
Chino
Chino HillsJurupa Valley
Chino HillsState Park
Lake Mathews EstelleMountain Reserve
San BernardinoNational Forest
Los Angeles
09
LOCATION MAP
Gold
en A
ve
Tyle
r St
215
60
60 91
91
60
Riverside
Jurupa Valley
GLEN AVON
MIRA LOMA
SUNNYSLOPE
PEDLEY
RUBIDOUX
Mt RubidouxPark
FaimaPark
Goose Creek Golf Club
Oak QuarryGolf Club
Oak QuarryGolf Club
Central Ave
Van Buren Blvd
Rubidoux Blvd
20th St
28th St
Hol
ly S
t N
Willson St
Avalo
n St
Jurapa Rd
Armst
rong
Rd
Love
land
D r
Karen Ln
Sandra Dr
30th St
36 th St
Hall A
ve
46 th St
34 th St
Wallace St
Magnolia Ave
Broc
kton
Ave
Palm
Ave
Monroe St
Adams St
Monticello Ave
Calif
orni
a Av
e
La Sierra Ave Hole Ave
Jurupa Ave
Rutland Ave
Crest Ave
Sandy Ln
Jones Ave
Jackson St
Cypress Ave
Nor
woo
d Av
e
Gramercy Pl
Pierce St
Valle
y Dr
Crestview Dr
Crest Ave
Essex StFrem
on
t St
Dewey Ave
Limonite Ave
Skyvie
w Rd
Peralta Pl
Clay
St
Linares Ave
Fels
par S
t
Cam
ino
Real
Bellegrave Ave
Marlatt St
Pyrit
e St
Galena St
Harrel St
Paci
fic A
ve
Opal
St
54th St54th St 54th St
58th St
56th St
60th St 61th St
Etiw
anda
Ave
Holmes AVE
55th St
Riverside Fy
Elsinoce Rd
Mai
n St
Oran
ge S
t
W Center StPlacentia Ln
Mai
n St
3rd St
Strong St
Arlington Ave
Martin Luther King Blvd
University Ave
Victoria Ave
Washington St
Madison St
Grand Ave
Jefferson St
Dufferin
Ave
Grace St
Maude St
Horace St
Lincoin Ave
Riverview Dr
Riverside Municipal Airport
LOCATION MAPLOCATION MAP
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Jurupa HillsCountry Club
Indian HillsGolf Club
Lake
side D
r
58th St
Sche
elite
St
60th St
Main St
Pedley Rd
Lakeview Ave
Riverdale
PlKennedy St
64th St
Arch
er S
t
Bake
r St
63rd St
Kels
ey P
l
Studio Pl
65th St
56 th St
Suns
et R
idge
Dr
Running Gait Ln
58th St
63rd St
Ba
ldwin Av
e
Yearling Way
Yearling Way
Pacer Way
Tamarind Ln
Eucalyptus St
Pedley Rd
Pedley Rd
Starview Dr
Greens
Dr
Lakeside Dr
Hea
rher
woo
d Dr
Mor
aga
Ave
Ave Juan DiazVega Ave
Jane St
William
sbur
g St
Star St
Fagin St
Janie St
Tayo St
Cross River Dr
Indain Camp Rd
Payt
on S
t
Wild
erne
ss A
ve
Ed Perkic St
Columbus St
Industrial St
El P
alomino
Dr
Live Oak Dr
Live O
ak Dr
Paisan
o Way
Stand
ish A
ve
Maria Dr
Palencia Dr
Quiroz Dr
Lippizan Dr
Skyloft DrVía Escalante
Sebastian Ave
Font AveSkyview Rd
Reagan Rd
Pico Ave
Claudette Dr
David Way
General Rd
Cam
ino
Real
Ridgeline Dr
Wendover Dr
Townsend Dr
Bria
n Ci
r
Gra
nd V
alle
y Tr
ail
Lansin
g Dr
Easton Dr
De Anza Plaza
Van Buren Blvd
Limonite Ave
Clay
St
Auld St
Julian Dr
PEDLEY
LOCATION MAP
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12
Population Summary 1 mile 3 mile 5 mile2000 Total Population 8,944 80,441 244,426
2010 Total Population 10,058 92,156 277,042
2014 Total Population 10,313 94,275 284,356
2014 Group Quarters 60 586 5,063
2019 Total Population 10,848 98,575 298,119
2014-2019 Annual Rate 1.02% 0.90% 0.95%
Housing Unit Summary2000 Housing Units Summary 2,799 23,396 75,546
Owner Occupied Housing Units 77.8% 65.9% 58.7%
Renter Occupied Housing Units 18.3% 30.3% 37.2%
Vacant Housing Units 3.9% 3.8% 4.1%
2010 Housing Units 3,103 25,380 82,077
Owner Occupied Housing Units 72.6% 62.2% 55.6%
Renter Occupied Housing Units 21.3% 32.0% 38.2%
Vacant Housing Units 6.1% 5.8% 6.2%
2014 Housing Units 3,193 26,094 84,390
Owner Occupied Housing Units 70.2% 59.3% 53.2%
Renter Occupied Housing Units 23.1% 33.8% 39.9%
Vacant Housing Units 6.7% 6.8% 6.9%
2019 Housing Units 3,356 27,250 88,265
Owner Occupied Housing Units 70.1% 58.5% 52.7%
Renter Occupied Housing Units 23.0% 34.2% 40.0%
Vacant Housing Units 6.9% 7.3% 7.3%
Median Household Income2014 $68,209 $52,480 $50,715
2019 $76,264 $57,340 $55,460
Median Home Value2014 $235,409 $206,621 $212,020
2019 $240,902 $220,116 $223,961
1 mile 3 mile 5 milePer Capita Income2014 $23,786 $17,143 $17,989
2019 $26,171 $19,253 $20,295
2014 Household by IncomeHousehold Income Base 2,980 24,307 78,528
<$15,000 4.5% 10.1% 11.3%
$15,000 - $24,999 6.8% 9.0% 9.7%
$25,000 - $34,999 6.5% 10.5% 10.8%
$35,000 - $49,999 12.0% 17.0% 17.2%
$50,000 - $74,999 25.1% 22.1% 20.5%
$75,000 - $99,999 15.6% 13.0% 13.0%
$100,000 - $149,999 21.9% 13.1% 12.4%
$150,000 - $199,999 5.0% 3.0% 2.9%
$200,000+ 2.6% 2.1% 2.1%
Average Household Income $81,538 $65,340 $ 63,663
2019 Households by IncomeHousehold Income Base 3,123 25,272 81,865
<$15,000 3.9% 9.4% 10.6%
$15,000 - $24,999 4.7% 9.6% 7.2%
$25,000 - $34,999 5.0% 8.6% 9.0%
$35,000 - $49,999 11.3% 16.9% 17.2%
$50,000 - $74,999 24.0% 21.8% 20.3%
$75,000 - $99,999 17.5% 14.8% 14.8%
$100,000 - $149,999 24.6% 14.9% 14.1%
$150,000 - $199,999 5.8% 4.0% 4.0%
$200,000+ 3.3% 2.9% 3.0%
Average Household Income $90,001 $73,727 $72,150
DEMOGRAPHICS
Jurupa Valley, CARIVERSIDE COUNTY
®
ALAZAR ASMAMAWE: [email protected]: 323-282-5559 C: 310-987-6922LAINVESTORS.COM
Exclusively Listed by,