smart & final 8200 el camino real, atascadero, ca · 8200 el camino real atascadero, ca 93422...

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 1

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

8 2 0 0 E L C A M I N O R E A L , ATA S C A D E R O , C A

O F F E R I N GM E M O R A N D U M C L I C K T O V I E W

P R O P E R T Y V I D E O

https://www.youtube.com/watch?v=rDcUSNYUqHA

E X C L U S I V E L Y L I S T E D B Y :

LINDSAY TSUMPES AVP & DIRECTOR Direct 1.949.873.0270 Mobile 1.310.880.8418 [email protected] Lic. No. 01954256

EL WARNER EVP & NATIONAL DIRECTOR Direct 1.949.873.0507 Mobile 1.858.752.3078 [email protected] Lic. No. 01890271

KYLE MATTHEWSCEO & CHAIRMAN Direct 1.310.919.5757 Mobile 1.310.622.3161 [email protected] Lic. No. 01469842

™

CONTENTS05131925

EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

TENANT OVERVIEW

05 EXEC

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SUMM

ARY

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


SMART & FINAL EXTRA! – ATASCADERO, CAMatthews Real Estate Investment Services is pleased to present the fee simple sale of a freestanding Smart & Final Extra! located in San Luis Obispo County wine country. Smart & Final Extra! is synergistically positioned as a dominant grocer within the community to serve the surrounding residential neighborhoods of Atascadero, California.

Perfectly positioned along US-101 with direct on/off ramp access, Smart & Final Extra! has an absolute NNN lease in place with approximately 17 years remaining and 2% annual rent increases.

Headquartered in Los Angeles county, Smart & Final is a publicly traded credit tenant (Moody’s: B2, Standard & Poor’s: B) and operates over 300 stores in the United States and Mexico with over 10,000 employees. Larger than typical Smart & Final warehouse locations, the Smart & Final Extra! concept was introduced approximately 8.5 years ago to enhance and benefit the household consumer’s shopping experience. The Smart & Final Extra! stores carry a greatly expanded selection of products and flexibility in purchasing options while retaining the same low prices and core value proposition of the traditional Smart & Final legacy locations, which has translated into positive same-store-sales in 24 of the last 25 years for the company.

This offering is a rare opportunity to acquire a single tenant grocer in California that provides long-term security and passive income.

OFFERING SUMMARYFINANCIAL SUMMARY8200 El Camino Real,Atascadero, CA 93422

List Price .....................................................................................................Best Offer

Gross Leasable Area ............................................................................ ± 57,744 SF

Lot Size .................................................................................................± 6.90 Acres

Year Built ............................................................................................................. 2000

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 7


LONG LEASE TERM REMAINING ±17.5 years remaining on the lease providing long-term income and security

EXCELLENT HEDGE AGAINST INFLATION Annual 2% rent increases every March 1st

LOCATED ALONG US-101 Traffic counts exceeding ±49,000 cars per day on US-101

GREAT ACCESS Direct on/off ramp access from US-101 with multiple points of ingress and egress

FANTASTIC VISIBILITY AND SIGNAGE Highly visible along cross streets and US-101 with multiple monument signs

AFFLUENT TRADE AREA Average household income of ±$86,000 in a 3-mile radius and ±91,000 in a 5-mile radius

SAN LUIS OBISPO COUNTY WINE COUNTRY Home to over 250 wineries and growing as one of California’s premier wine destinations

INVESTMENT HIGHLIGHTSDOMINANT CALIFORNIA GROCER ±300 stores with a net sales increase of 3.9% to ±$1.1 billion reported in Q2 2017

ABSOLUTE NNN LEASE Ease of Management – Zero landlord responsibilities

PUBLICLY TRADED CREDIT TENANT (NYSE: SFS) Stability of a daily needs tenant with great credit and strong customer base


SURROUNDING TENANTS

±49,000 ADT 8 | O F F E R I N G M E M O R A N D U M


±49,000 ADTM A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 9


SANTA ROSAELEMENTARY SCHOOL

±49,000 ADT

1 0 | O F F E R I N G M E M O R A N D U M


SURROUNDING TENANTS

SANTA ROSAELEMENTARY SCHOOL

±49,000 ADT

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 1 1M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 1 1

13 FINAN

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TERM MONTHLY RENT ANNUAL RENT ANNUAL RENT/SF

Current - 2/28/2018 $78,479 $941,753 $16.31

3/1/2018 - 2/28/2019 $80,049 $960,588 $16.64

3/1/2019 - 2/28/2020 $81,650 $979,800 $16.97

3/1/2020 - 2/28/2021 $83,283 $999,396 $17.31

3/1/2021 - 2/28/2022 $84,949 $1,019,384 $17.65

3/1/2022 - 2/28/2023 $86,648 $1,039,771 $18.01

3/1/2023 - 2/28/2024 $88,381 $1,060,567 $18.37

3/1/2024 - 2/28/2025 $90,148 $1,081,778 $18.73

3/1/2025 - 2/28/2026 $91,951 $1,103,414 $19.11

3/1/2026 - 2/28/2027 $93,790 $1,125,482 $19.49

3/1/2027 - 2/28/2028 $95,666 $1,147,992 $19.88

3/1/2028 - 2/28/2029 $97,579 $1,170,951 $20.28

3/1/2029 - 2/28/2030 $99,531 $1,194,371 $20.68

3/1/2030 - 2/28/2031 $101,521 $1,218,258 $21.10

3/1/2031 - 2/28/2032 $103,552 $1,242,623 $21.52

3/1/2032 - 2/28/2033 $105,623 $1,267,476 $21.95

3/1/2033 - 2/28/2034 $107,735 $1,292,825 $22.39

3/1/2034 - 2/28/2035 $109,890 $1,318,682 $22.84

MARKET DEBT QUOTE

Loan to Value 70%

Interest Rate 4.20%

Term 10 Years

Amortization 25 Years

Loan quote provided by Barrington Capital based on market conditions at this time. Actual rates and terms will vary based on market conditions at closing. Please contact Brian Krebs at the information below:

Phone: (949) 777-5988Email: [email protected]

FINANCIAL SUMMARY8200 El Camino Real,Atascadero, CA 93422

List Price .....................................................................................................Best Offer

Gross Leasable Area ............................................................................ ± 57,744 SF

Lot Size .................................................................................................± 6.90 Acres

Year Built ............................................................................................................. 2000

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TENANT SUMMARY

Tenant Smart & Final, LLC

Tenant Trade Name Smart and Final Extra!

Type of Ownership Fee Simple

Lease Type Absolute NNN

Landlord Responsibility None

Lease Commencement Date 12/18/15

Rent Commencement Date 12/18/15

Lease Expiration Date 2/28/35

Term Remaining on Lease ±17.5 Yrs

Increases Annual 2% Every March 1st

Options Two 10-Year Options

PHYSICAL DESCRIPTION

Property Name Smart & Final Extra!

Property Address8200 El Camino RealAtascadero, CA 93422

Assessor's Parcel Number 056-031-062

Zoning CR

SITE DESCRIPTION

Number of Stories One

Year Built 2000

Gross Leasable Area (GLA) ±57,744

Lot Size ±300,700 SF (±6.9 Acres)

Type of Ownership Fee Simple

Parking ±270 Surface Spaces

Parking Ratio 4.68:1,000 SF

Landscaping Professional

Topography Generally Level

CONSTRUCTION

Foundation Concrete Slab

Framing Steel

Exterior Stucco and CMU

Parking Surface Asphalt

RoofGravel-Ballasted Built-Up Roofing (BUR) and Standing Seam Metal



LEASE ABSTRACT

Tenant: Smart & Final Stores LLC

Tenant Trade Name: Smart & Final Extra!

Address:8200 El Camino Real Atascadero, CA 93422

Size: ±57,744

Lease Date: 12/18/2015

Rent Commencement: 12/18/2015

Lease Expiration: 2/28/2035

Renewal Options: Two (2) separate Ten (10) year options

Required Advance Notice of Exercise Options:One hundred twenty (120) days prior to the end of the initial term or then effective extension term

Current Rent (annually): $941,753

Rent Increases: 2% annual increases every March 1st (includes Option Terms)

Real Estate Taxes: Tenant responsible to pay real estate taxes

Insurance: Tenant responsible to pay insurance costs

Utilities: Tenant to pay all utilities

Repair and Maintenance:

Tenant, at it's sole cost and expense, shall keep all building, structures and improvements erected at the Subject Property in good working order and repair including and without limitation, the roof and HVAC and other electrical and mechanical systems. Tenant shall also at it's sole cost and expense repair and reconstruct any building, structure or improvement at the Subject Property that has been damaged or destroyed by a casualty. Tenant shall make all necessary structural, non-structural, exterior and interior repairs to the Subject Property. Tenant also waives any right to require Landlord, at Landlord's expense, to maintain, repair or rebuild any part of the Subject Property.

Percentage Rent: None

Right of First Refusual / Right to Purchase: None

Estoppel:Tenant is required to execute an estoppel certificate within twenty (20) days upon written request from the Landlord.

Exclusive Use: Tenant granted exclusive use for "grocery store"

Proposition 13 Protection:Tenant shall have financial protection from reassessment of real estate taxes as a result of sale or transfer during the first five (5) years from the Effective Date of this lease, (DOES NOT AFFECT THIS SALE).

19 AREA

OVER

VIEW



ATASCADERO, CAAtascadero is a city in San Luis Obispo County, California. Located equidistant between Los Angeles and San Francisco, the city has a small-town charm and within driving distance from major metropolitan areas. With annual local events at Atascadero Lake Park and regular fairs and farmers markets, this city provides residents access to unique and local industries.

POPULATION 1-MILE 3-MILE 5-MILE

2022 Projection 7,545 27,571 35,168

2017 Estimate 7,349 26,549 33,811

Growth 2017-2022 2.67% 3.85% 4.01%

Growth 2011-2017 2.83% 4.95% 5.22%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE

2022 Projection 2,969 10,655 13,595

2017 Estimate 2,872 10,183 12,985

Growth 2017-2022 3.38% 4.63% 4.70%

Growth 2010-2017 4.47% 7.09% 7.10%

2017 Est. AverageHousehold Size

2.53 2.49 2.51

INCOME 1-MILE 3-MILE 5-MILE

Average Household Income

$87,784 $86,147 $91,463

Median Household Income $67,552 $67,768 $71,396

DEMOGRAPHICS



EAGLE RANCH DEVELOPMENTEagle Ranch is currently 3,475-acres of rolling green hills and oak trees. Owned by The Smith family of Ventura since 1964, Atascadero has been making development plans for Eagle Ranch since the early 2000s. The land is to be developed in 10 phases over 25 years, likely starting in 2020.

The development will consist of 494 single-family lots of at least 1 acre, 93 units of multifamily housing, 2,285 acres of open space, and 16.9 miles of public trails that will be maintained by future homeowners’ association. Additionally, hotels and a village center with commercial space would be a part of the community.

SUMMARY• 494 single-family residential lots• 93 multi-family units (senior housing, workforce housing & mixed-use units)• Resort Hotel: 44.9 acres; 100 rooms and associated amenities• Village Center: 3.9 acres; 15,000 sq. ft. retail, offices, postal facilities, meeting space• Highway Commercial: 15.2 acres; 200-room hotel & facilities and sit-down restaurant• Public Park: 7.4 acres; includes small amphitheater• Equestrian Staging Area: 1.6 acres• Roads: ±19 miles internal network of roads• Trails: ±16.9 miles of paved multi-use paths, unpaved trails, and trail easement(s)• Open Space and Agriculture: ±2,285 acres; consisting of agricultural, private & public open space



Known as the Happiest Place in America, San Luis Obispo (SLO) is conveniently located along the Central Coast, halfway between San Francisco and Los Angeles. Fringed by the Santa Lucia Mountains to the north and with the Pacific Ocean only 11 miles away, residents and visitors enjoy access to the best of California’s wilderness and natural areas. As the site of one of the iconic Spanish missions in California and the home of California Polytechnic State University, SLO occupies a unique place in the history of the state. These establishments have given rise to many local shops and restaurants, which have created a unique character in this college town.

SAN LUIS OBISPO

TOP EMPLOYERS

California Polytechnic State University

County of San Luis Obispo

Department of State Hospitals- Atascadero

Pacific Gas & Electric

California Men’s Colony

Cal Poly Corp.

Tenet Healthcare

Compass Health Inc.

Lucia Mar Unified School District

Paso Robles Public Schools



CAL POLY SAN LUIS OBISPO

California Polytechnic State University, San Luis Obispo, also known as Cal Poly Slo, is a nationally ranked public university located in San Luis Obispo on California’s sunny Central Coast. With six colleges, the university offers 64 bachelor’s degrees, 32 master’s degrees, and 7 teaching credentials.

ECONOMIC IMPACT OF THE UNIVERSITY

Annual spending related to Cal Poly SLO generates a total economic impact of $469 million on the regional economy, and nearly $951 million on the statewide economy. This impact sustains more than 5,000 jobs in the region and nearly 8,500 jobs statewide. Per year, the impact generates nearly $90.6 million in local and statewide tax revenue.

$951 MILLION

ECONOMIC IMPACT ON LOCAL AND STATEWIDE ECONOMY

8,500

STATEWIDE JOBS SUSTAINED

20,944

NUMBER OF STUDENTS

25 TENAN

T OVE

RVIEW



SMART & FINAL STORES, INC.Smart & Final Extra! is headquartered in Los Angeles, where it was started 140 years ago.Smart & Final Stores, Inc. operates approximately 300 grocery and foodservice stores under the “Smart & Final”, “Smart & Final Extra!” and “Cash&Carry Smart Foodservice” banners in California, Oregon, Washington, Arizona, Nevada, Idaho and Northern Mexico.

SMART & FINAL EXTRA! CONCEPT Smart & Final Extra!, one of the company’s newest store concepts, is designed to enhance the household consumer’s shopping experience and also includes changes to benefit business customers. Smart & Final Extra! stores are much larger than a typical Smart & Final warehouse store and full of extra features. The stores carry a greatly expanded selection of products in key categories like produce, fresh meat, frozen foods, dairy, deli and grocery basics like cereal, yogurt, bread and snacks. Smart & Final Extra! combines the high quality fresh produce of a farmer’s market, the low prices of a discount grocer and the large club size products of a traditional club store. Smart & Final Extra! also carry thousands of items in smaller, convenient sizes. In addition, Smart & Final Extra! have everything that small businesses, clubs and organizations need on a daily basis. Smart & Final is finding success in the Extra! locations with a 15.2% increase in net sales by end of third fiscal quarter 2016 compared to the same period of 2015.

# OF LOCATIONS

±300

# OF EMPLOYEES

±11,900

ANNUAL SALES

$4.34 BILLION



High quality fresh produce

Organic and Natural Products

Fresh and frozen products

Larger Fomat

Grocery basics

Smaller convenient sizes

Bulk foods

In-house bakery

Typical differences between the two concepts include:

CONFIDENTIALITY AND DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Smart & Final located at 8200 El Camino Real, Atascadero, CA (“Property”). It has been prepared by Matthews

Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is

not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller

and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering

Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property,

you agree: The Offering Memorandum and its contents are confidential;You will hold it and treat it in the strictest of confidence; and You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any

fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate

discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue

negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser’s sole and exclusive rights with respect

to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective

purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or

the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.


E X C L U S I V E L Y L I S T E D B Y

KYLE MATTHEWS CEO & CHAIRMAN

Direct 1.310.919.5757 Mobile 1.310.622.3161

[email protected] Lic. No. 01469842

EL WARNER EVP & NATIONAL

DIRECTOR

Direct 1.949.873.0507 Mobile 1.858.752.3078


LINDSAY TSUMPES AVP & DIRECTOR

Direct 1.949.873.0270 Mobile 1.310.880.8418


smart & final 8200 el camino real, atascadero, ca · 8200 el camino real atascadero, ca 93422...

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