522 East Vine Avenue€¦ · opportunity in one of the strongest residential rental markets in Los...
Transcript of 522 East Vine Avenue€¦ · opportunity in one of the strongest residential rental markets in Los...
EDWARD PAN First Vice President
Lic. 01894476Office +1 213 532 3292
Mobile +1 626 720 [email protected]
JAMES E. RODRIGUEZ Senior Vice President
Lic. 01164377Direct +1 213 532 3284
Mobile +1 626 222 [email protected]
MICHAEL BOHORQUEZ Vice PresidentLic. 01870842
Direct +1 213 532 3220Mobile +1 818 448 9934
Colliers International 865 S. Figueroa Street | Suite 3500
Los Angeles, CA 90017colliers.com/greaterlosangeles
522 East Vine Avenue
Retail Investment Offering Memorandum
522 E. Vine Ave. | West Covina CA 91790
Executive Advisors
522 E . V ine Avenue | West Cov ina , CA 1
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). ©2019. All rights reserved.
Table of Contents
Executive Summary 2
Investment Summary 4Financial Summary 6Location Overview 12
2 Execut ive Summary
522 E . V ine Avenue | West Cov ina , CA 3
Executive Summary Colliers International, as an exclusive advisor to the seller, is pleased to present for sale the Three-Unit Retail Center in West Covina located at 522 E. Vine Avenue. The three-unit retail building totaling 5,806 gross leasable square feet presents an exceptional NNN investment opportunity in one of the strongest residential rental markets in Los Angeles. Current tenants at this property are George’s Cafe, Ranchtown Market and El Jireh Restaurant (formerly known as Las Champas Restaurant). El Jireh Restaurant has excercised an early 10-year lease renewal and in addition they will be expanding their operations and leasing the current Ranchtown Market retail space starting 12/1/2020.
Investment Highlights
• Three - Units: Current tenants - George’s Cafe, Ranch Town Market and
El Jireh Pupuseria Restaurant
• Traffic Counts Exceeding ±32,000 Vehicles Per Day
• Located in the heart of West Covina with over 200,000 people in a
3-Mile Radius
• Median Household Income: $77,000 Per Year in a 1-Mile Raidus
• El Jireh Restaurant has executed an early 10-year renewal at the
location starting 12/1/2020.
4 Property Overv iew
NNN Corner Lot Retail Center
Summary
Lease Types NNN
Price Per Square Foot $511.54
Rent Per Square Foot $23.45
Gross Leasable Area 5,806 SF
Lot Size 0.56 AC
Year Built 1948
Offering Summary
Price $2,970,000
Net Operating Income $136,140
CAP Rate 4.58%
CAP Rate (effective 12/2020) 5.01%
Investment Summary
522 E . V ine Avenue | West Cov ina , CA 5
Property Details
Dedicated Parking Located in
Front and Rear
The Offering Property 522 E. Vine Avenue
Price $2,970,000
Property Address522 E Vine Ave, West Covina CA 91790
APN 8488-002-001
Zoning WCC1YY
UtilitiesWater Mastered Metered
Phone Individually Metered
Electric Individually Metered
Gas Individually Metered
ConstructionFoundation Concrete Slab
Framing Wood
Exterior Stucco
Parking Surface Asphalt
Roof Tile
Site DescriptionNumber of Units 3
Number of Buildings 1Number of Stories Single
Year Built/Renovated 1948
Rentable Square Feet 5,806
Lot Size 0.56 acre(s)
Type of Ownership Fee Simple
Parking 17 pkg spots in rear/ 11 in front
Landscaping Updated
6 Financ ia l Summary
522 E . V ine Avenue | West Cov ina , CA 7
Financial Summary
Investment Summary
Price $2,970,000
Down Payment $1,485,000 (50%)
Year Built 1948
Units 3
RSF 5,806 RSF
Lot Size 0.56 AC
Zoning WCC1YY
APN 8488-002-001
NOI $136,140
CAP Rate 4.58%
CAP Rate (effective 12/2020) 5.01%
*Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification.
5,806 sfRSF
$2,970,000PRICE
Summary
Lease Types NNN
Price Per Square Foot $511.54
Rent Per Square Foot $23.45
Gross Leasable Area 5,806 SF
Lot Size 0.56 AC
Year Built 1948
Annualized Expenses
Actual
Utilities $25,613
Property Taxes $21,659
Insurance $3,672
Cleaning/Landscaping $1,220
Trash $5,443
Alarm $744
Total $58,352
Total Rent $136,140
Total Expense$58,352 (alll expenses are
reimbursed by tenants)
Net Operating Income $136,140
Expense Report
8 Financ ia l Summary8 Property Overv iew
NNN in PrimeWest Covina
2315 Bar low Street | Los Ange les , CA 9
Tenant GLA Lease Term Annual Total Rent Rent/SF Options
George’s Cafe 1,000 3/16/2020-5/15/2025 $40,800 $40.80 1,5 Year
Ranch Town Market 2,326 11/20/2013-11/22/2020 $49,440 $21.25 TBD
El Jireh Restaurant 2,480 12/1/2020-011/30/2030 $45,900 $18.50 TBD
TOTAL 5,806 $136,140 $80.55
Rent Roll - Current
522 E . V ine Avenue | West Cov ina , CA 9
Traffic Counts Exceeding 32,000 Vehicles
Per Day
Tenant GLA Lease Term Annual Total Rent Rent/SF Options
George’s Cafe 1,000 5/1/2017-3/30/2022 $40,800 $48.00 1, 5 Year
El Jireh Restaurant 4,806 12/1/2020-011/30/2030 $108,000 $22.47 TBD
TOTAL 5,806 $148,800 $70.47
Rent Roll - Effective December 1st, 2020
Tenant Profile
10 Financ ia l Summary
TENANT PROFILETenant George’s CafeRentable SF 1,000 SFLease Commencement March 13, 2020Lease Expiration May15, 2025Term Remaining 5 YearsOptions to Renew 1 Five Year OptionCurrent Base Rent $40,800Guarantor Personal
TENANT PROFILETenant El Jireh Pupuseria & Restaurant Rentable SF 2,480 SFLease Commencement December 1, 2020Lease Expiration November 30, 2030Term Remaining 10 YearsOptions to Renew TBDCurrent Base Rent $45,900 Guarantor Franchisee
TENANT PROFILETenant Ranch Town Market Rentable SF 2,320 SFLease Commencement November 20, 2013Lease Expiration November 22, 2020Term Remaining 1+ YearsOptions to Renew TBDCurrent Base Rent $49,440 Guarantor Franchisee
George’s Cafe
522 E . V ine Avenue | West Cov ina , CA 11
Operating Income and
Expense Statement10/1-12/31, 2014 1/1-12/31, 2015 1/1-12/31, 2016 1/1-12-31, 2017 1/1-12/31, 2018 1/1-12/31, 2019
Gross Rental Income $25,700 $103,200 $105,600.00 $111,800.00 $124,810.00 $134,940.00
Utilities $4,501.62 $25,023.45 $23,653.15 $24,678.55 $25,613.23 $25,613.23
CAM’s (common area reim-bursement) $4,416.33 $19,392.07 $29,654.91 $31,872.29 $32,327.98 $38,505.19
Total Income $34,617.95 $147,615.52 $158,908.06 $168,350.84 $182,751.21
EXPENSES
Utilities $4,501.62 $25,023.45 $23,653.15 $24,678.55 $25,613.23 $25,613.23
Real Estate Taxes $3,187.74 $14,957.71 $19,941.78 $21,243.19 $21,731.97 $21,659.04
Insurance $628.59 $2,514.36 $2,779.77 $3,549.25 $3,188.45 $3,672
Property Management - - - - -
Cleaning/Landscaping $550.00 $1,920.00 $1,520.00 $1,220.00 $1,220.00 $1,220.00
Repair/Fees/PO Box $5,992.50 $1,857.00 $4,744.06 $5,153.35 $5,443.23 -
Business License $100 $100 $669.30 $706.50 $744.33 -
TOTAL EXPENSES $14,460.45 $46,372.52 $53,308.06 $56,550.84 $57,941.21 $58,352.00
NET INCOME $19,657.50 $101,243.00 $105,600.00 $111,800.00 $124,810.00 $136,140.00
Operating Income & Expense Statement
12 Sect ion Name
Location OverviewThe 2010 United States Census reported that West Covina had a population of 106,098. The population density was 6,594.3 people per square mile (2,546.1/km²). The racial makeup of West Covina was 42.8% White (15.3% Non-Hispanic White),[5] 4.5% Black, 1.0% Native American, 25.8% Asian, 0.2% Pacific Islander, 21.3% from other races, and 4.4% from two or more races. Persons of Hispanic or Latino origin were 53.2%.
The Census reported that 105,424 people (99.4% of the population) lived in households, 351 (0.3%) lived in non-institutionalized group quarters, and 323 (0.3%) were institutionalized.
There were 32,705 housing units at an average density of 2,032.7 per square mile (784.8/km²), of which 20,703 (65.5%) were owner-occupied, and 10,893 (34.5%) were occupied by renters.
Location Highlights
Rated “Very Walkable” by Walk Score
Nearby Many Public Transportation Options
Immediate Access to 605 and 10 Fwys
Moments Away from Major Downtown L.A. Employers
Countless Shopping,Dining and Entertainment Amenities in Nearby Downtown
Food & Services1. Hong Kong Plaza2. Circle K 3. Walgreens Pharmacy4. McDonalds5. Burger King6. Wells Fargo7. Planet Fitness8. Bank of America
1. Baldwin Elementary School
2. 10 & 605 Fwy Interchange
Amenities Map | Southwest View
Food & Services1. Hong Kong Plaza2. King Torta 3. Plaza West Covina Mall4. Petco5. Domino’s Pizza6. Vons7. Chevron
1. West Covina DMW2. West Covina Employment
Center
Amenities Map | Northeast View
2315 Bar low Street | Los Ange les , CA 1313 Locat ion Overv iew
14 Sect ion Name
2315 Bar low Street | Los Ange les , CA 1515 Market Comparab les
16 Sect ion Name 2315 Bar low Street | Los Ange les , CA 16
The City of West Covina began the second half of the 20th century with new developments and projects, mostly brought on by big business. The City Hall and police facility were built in 1969 as the first phase of an example of a Joint Powers Authority in the County of Los Angeles. The Civic Center Joint Powers Authority, consisting of the County of Los Angeles and the City of West Covina, also completed a 3 lvl pkg structure in the Civic Center complex. The Civic Center complex includes the LA County Regional Library, the Citrus Municipal Court bldg and city offices.
The first Redevelopment Agency project included a regional shopping center, the West Covina Fashion Plaza, with three major department stores and 150 shops in an air-conditioned, enclosed mall. It also included the revitalization of the older sections of the shopping center. The Fashion Plaza has provided the citizens of the San Gabriel Valley with convenient access to all shopping needs. In 1991 the mall was renovated adding a food court and additional shops. The mall was renamed “The Plaza at West Covina”. The Plaza opened a new 100,000 sq ft (9,300 m2). wing in Oct 1993 featuring 50 new stores including a new Robinson’s-May and interior renovation throughout The Plaza.
The Redevelopment Agency’s efforts have also resulted in several major office buildings in the city, such as “The Lakes”, in addition to two new community shopping centers, freestanding retail developments, restaurants, residential projects, and the Auto Plaza.
The estimated 2019 United States Census reports the population within a 5 mile radius of the subject property, to be 515,644, and an estimated growth rate of 2.23% from 2019-2024. The single-classification by race indicates the following breakdown within a 5 mile radius of the subject property: white 43.5%, Black/African American 2.02%, American Indian 0.91%, Asian 21.88%, Native Hawaiian 0.16%, Other 27.54%, 2/more 3.85%
West Covina, California
OCCUPATION CLASSIFICATIONwithin a 5 mile radius of the
property is 53.08% White Collar
income bracket within a 5 mile radius of property is $50-75k/year
LARGEST HOUSEHOLD
within a 5 mile radius is expected to reach 2.31% by 2024
POPULATION GROWTH
Submarket Housing Trends
2315 Bar low Street | Los Ange les , CA 1717 Locat ion Overv iew
Population
Households
Income
Race and Ethnicity
Housing
Employment
In 2019, the population of West Covina was 515,644 within a 5 mile radius of the subject property. There has been a population change of 2.48% since 2010. It is estimated that the population of West Covina will be 527,156 five years from now, which represents a change of 2.23% from the current year. Currently, there are 49.26% male and 50.74% females.
There are currently 135,308 households in West Covina. It is estimated that the number of households in West Covina will be 138,433 five years from now, which represents a change of 2.31% from the current year. The average household size is 3.79 persons.
In 2019, the median household income for West Covina was $71,580, compared to the US average which is currently $57,617. The largest median household income bracket of 17.77% are earners between $50,000-$75,000, and the second largest brakcet of 14.55% being household income earners between $75-$100k.
The current year racial makeup of West Covina is as follows: 43.65% White, 2.02% Black, 0.91% Native American and 22.04% Asian/Pacific Islander.
The median housing value within a 5 mile radius of the property was $498,069 in 2019, compared to the US average of $320,300. In 2019, there were 88,125 owner occupied housing units and 47,183 renter-occupied housing units within a 5 mile radius of the subject property.
In 2019, there were 233,769 employees within a 5 mile radius of the subject proeprty, also known as daytime population. The 2019 Census realized that 53.08% of employees are employed in white-collar occupations in this geography, and 26.39% are employed in blue-collar occupations. In 2019, the average time traveled to work was 36 minutes.
Market Highlights
522 E . V ine Avenue | West Cov ina , CA 17
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). ©2019. All rights reserved.
Colliers International 865 S. Figueroa Street | Suite 3500
Los Angeles, CA 90017colliers.com/greaterlosangeles
EDWARD PAN First Vice President
Lic. 01894476Office +1 213 532 3292
Mobile +1 626 720 [email protected]
JAMES E. RODRIGUEZ Senior Vice President
Lic. 01164377Direct +1 213 532 3284
Mobile +1 626 222 [email protected]
MICHAEL BOHORQUEZ Vice PresidentLic. 01870842
Direct +1 213 532 3220Mobile +1 818 448 9934
EDWARD PAN First Vice President
Lic. 01894476Office +1 213 532 3292
Mobile +1 626 720 [email protected]
JAMES E. RODRIGUEZ Senior Vice President
Lic. 01164377Direct +1 213 532 3284
Mobile +1 626 222 [email protected]
MICHAEL BOHORQUEZ Vice PresidentLic. 01870842
Direct +1 213 532 3220Mobile +1 818 448 9934