save mart center - loopnet

Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, California License Number 01385740.

SAVE MART CENTERA HIGH-PERFORMING, GROCERY-ANCHORED RETAIL CENTER

LOCATED IN NORTHERN CALIFORNIA

INVESTMENT OVERVIEW

HFF has been exclusively retained by Ownership to offer qualified investors the exciting opportunity to acquire the fee simple interest in Save Mart Center (the “Property” or “Center”), an 80,640 SF grocery-anchored shopping center located in Lathrop, California. The Property is 100% leased and anchored by Save Mart Supermarkets with sales over $457/SF and a lease term extending through 2025. The Property is located in a trade area with over 86,000 residents within a 5-mile radius and average household incomes exceeding $75,000. The Center offers a complementary mix of national and regional tenants including Chase Bank, Starbucks Coffee, Baskin Robbins, Papa Murphy’s, and Mikasa Japanese Bistro. Save Mart Center is prominently positioned with great visibility exposing it to nearly 95,000 vehicles per day via Interstate-5 and over 20,000 vehicles via the surrounding arteries of Harlan Rd. and W. Lathrop Rd.

`MAJOR TENANTS INCLUDE:

TENANT SIZE (SF) LEASE EXP.

SAVE MART SUPERMARKETS 48,316 October 2025

CHASE BANK 4,200 February 2021

STARBUCKS COFFEE (W/ DRIVE-THRU) 1,702 February 2026

BASKIN ROBBINS 1,350 July 2020

Debt Assumptions: 65.0% LTV; 4.50% Interest Rate; Interest Only Amortization

PROPERTY SUMMARY

ADDRESS 15010 Harlan Road Lathrop, California 95330

% LEASED 100.0%

SQUARE FEET 80,640

OFFERING PRICE $16,400,000

IN-PLACE NOI $1,141,951

LEVERAGED CASH ON CASH RETURN 11.0%

REQUIRED EQUITY $5,740,000

CAP RATE 7.0%

SITE AREA ±9.98 Acres

PARKING RATIO 5.74 / 1,000 SF

YEAR BUILT 2005

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SAVE MART CENTER LATHROP, CALIFORNIA

RANKING FOR AMERICA’S LARGEST PRIVATE COMPANIES

RANKING FOR THE TOP 50 LARGEST U.S. GROCERY CHAINS

RANKING FOR TOP RETAIL CHAINS

RANKING FOR THE TOP 50 FASTEST GROWING GROCERY CHAINS

(FORBES 2016)(PROGRESSIVE GROCER 2016)

(THE BALANCE 2013) (CHAIN STORE GUIDE 2010)

#91 #21 #34 #5

STRONG GROCERY STORE SALES

WITH GROWTH

Save Mart Supermarkets generates sales of over $22.1M (±$458 PSF) and shows positive sales growth (±20% over the past four years) with a strong health ratio under 3.0%.

GROCERY-ANCHORED SHOPPING CENTER

IN CALIFORNIA’S CENTRAL VALLEY

Grocery-anchored by Save Mart Supermarkets ($4.5B sales/213 stores) on a long-term lease through 2025, providing a consistent, “daily needs” draw to the property.

INVESTMENT HIGHLIGHTS

SAVE MART SUPERMARKETS PERFORMANCE (YEAR ENDING JUNE-2017)

PROPERTY SF ANNUAL SALES SALES/SF ANNUAL + NNN RENT TOTAL RENT $/SF HEALTH RATIO

SAVE MART CENTER 48,316 $22,118,654 $457.79 $599,019 $12.40 2.71%

SAVE MART SUPERMARKETS SALES GROWTH AT SAVE MART CENTER

YE JUN-17 YE JUN-16 YE JUN-15 YE JUN-14 YE JUN-13 4YR. SALES GROWTH ANNUAL GROWTH

$457.79 $450.04 $424.94 $398.03 $380.90 20.19% 5.05%

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CALIFORNIA GROCERY-ANCHORED RETAIL CENTER

DIVERSE SHOP TENANT MIX

The Center offers a strong mix of national, regional, and local tenants including Starbucks Coffee, Chase Bank, H&R Block, Baskin Robbins, Papa Murphy’s, and La Hacienda Taqueria.

POSITIVE INCOME GROWTH FROM BELOW MARKET RENTS

Several tenants at the shopping center are paying below market rents with a strong operating history. Rollover and mark-to-market of these rents is projected to grow NOI nearly 20% over the hold period.

INVESTMENT HIGHLIGHTS (CONTINUED)

ATTRACTIVE IN-PLACE CASH FLOW WITH

STRONG TENANT DEMAND

The Property is 100% leased with a strong operating history, demonstrating strong tenant demand and offering investors attractive in-place cash flow.

EXCELLENT VISIBILITY, LOCATION AND ACCESS

Save Mart Center is ideally located right off of Interstate-5 and provides pylon signage to the highway exposing the Property to nearly 95,000 vehicles per day. Harlan Rd. and Lathrop Rd. provide further visibility to over 20,000 vehicles on a daily basis.

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LOCATION MAP

SAVE MART CENTER

MAJOR AIRPORTS:

OAKLAND INT’L AIRPORT (OAK) 57 Miles

SACRAMENTO INT’L AIRPORT (SAC) 62 Miles

SAN JOSE INT’L AIRPORT (SJC) 70 Miles

SAN FRANCISCO INT’L AIRPORT (SFO) 76 Miles

SFO

SJC

SMF

OAK

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94,172VEHICLES PER DAY


LATHROP ROAD


LATHROP ELEMENTARY

SCHOOL

LOGISTICS CENTER

LATHROP FIRE DEPARTMENT

DEMOGRAPHICSSAVE MART CENTER 3-MILE 5-MILE

2022 POPULATION PROJECTION 40,212 91,702

2017 POPULATION ESTIMATE 37,111 86,283

POPULATION % GROWTH (2017-2022) 8.4% 6.3%

2017 EST. AVERAGE HOUSEHOLD INCOME $79,758 $75,176

N

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INVESTMENT HIGHLIGHTS (CONTINUED)

STRONG DEMOGRAPHICS WITH AN EXPANDED DRAW

Over 86,000 resident located within a 5-mile radius of the Property with average household

incomes exceeding $75,000.

INSTITUTIONALLY MANAGED ASSET

The Property has been meticulously maintained by institutional ownership significantly reducing

the need for future capital expenditures.

UNENCUMBERED ASSET

The Property is being delivered free and clear of existing financing, providing the opportunity to take advantage of the historically low interest rate

environment and enhanced leveraged returns.

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STE TENANT SF % NRA LEASE EXP.

A1 Advance America 900 1.1% Dec-19

A2 Eyebrow Masters 900 1.1% Oct-20

A3 Chase Bank 4,200 5.2% Feb-21

B1 Cigarette City 1,000 1.2% Oct-22

B2 La Hacienda Taqueria 1,000 1.2% May-18

B3 Metro PCS 1,000 1.2% Sep-22

B4 H&R Block 1,000 1.2% Apr-19

C1 Mikasa Japanese Bistro 2,257 2.8% Feb-22

C2 Huan Nguyen, DDS 1,476 1.8% Mar-22

C3 Lathrop Beauty Salon 1,120 1.4% Apr-18

C4 Exclusive Wireless 1,470 1.8% Sep-19

C5 Global Nails 1,120 1.4% Jan-18

C6 Boost Mobile 1,400 1.7% Nov-22

C7 MX Donuts 1,120 1.4% Sep-22

C8 Papa Murphy's 2,030 2.5% Mar-19

MJR1 Save Mart Supermarkets 48,316 59.9% Oct-25

PAD A1 Starbucks Coffee 1,702 2.1% Feb-26

PAD A2 China Wok Express 1,200 1.5% Dec-20

PAD A3 Milano Pizza 1,500 1.9% Oct-20

PAD A4 Dollar One Only Store 1,929 2.4% Mar-19

PAD B1/B2 Rasoi 2,650 3.3% Oct-22

PAD B3 Baskin Robbins 1,350 1.7% Jul-20

TOTAL AVAILABLE SF 0 0.0%

TOTAL OCCUPIED SF 80,640 100.0%

TOTAL OVERALL SF 80,640

INVESTMENT OVERVIEW

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SITE PLAN

HARLAN RD

PAD

A

DRIVE-T

HRU

A2

A3

A1

B1

C1

C2

C3

C4C5C6

C7

C8

B3

B2

B1

A1

A4A

3A2

B2

B3

B4

PA

D B

SHOPS A SHOPS B

SH

OP

S C

Sales ±$1,420/SF

Approx. $46M in Deposits

(Avg. 35%+ Growth Per Annum)

Sales ±$455/SF

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©2017 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

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www.hfflp.com

GLEB LVOVICH949.798.4115

[email protected] RE Lic. #01496699

BRYAN LEY310.407.2120


ERIC KATHREIN415.510.6961


DOUGLAS CORDSCommercial Retail Associates, Inc.

[email protected]

CA RE Lic. #01264420

BRYAN CIFRANICCommercial Retail Associates, Inc.

[email protected]

CA RE Lic. #01809130

MARK DEGIORGIO949.798.4138


PETER SMYSLOWSKI415.276.6950


INVESTMENT SALES ADVISORS

MARKET & LEASING EXPERTSASSOCIATE DEBT GUIDANCE

SAVE MART CENTERA HIGH-PERFORMING, GROCERY-ANCHORED RETAIL CENTER

LOCATED IN NORTHERN CALIFORNIA

save mart center - loopnet

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