750 N. ESCONDIDO BOULEVARD | ESCONDIDO, CA CAR WASH & … · by many national retailers including...

Holliday GP Corp. ("HFF"), California Department of Real Estate License #01385740.

MISSION AVENUEESCONDIDO BLVD.

CAR WASH & FUEL STATION7 5 0 N . E S C O N D I D O B O U L E V A R D | E S C O N D I D O , C A

LONG TERM, ABSOLUTE NNN INVESTMENT OPPORTUNITY1.81 ACRE HARD CORNER LOT AT HIGH TRAFFIC INTERSECTION

TABLE OF CONTENTSEXECUTIVE SUMMARY ............3

PROPERTY OVERVIEW ..........12

AREA & MARKET OVERVIEW .............................15

MISSION AVENUE

ESCONDIDO BLVD.

DANIEL TYNER949.798.4125

[email protected] RE Lic. #01959818

NICK FOSTER949.798.4135

[email protected] Lic. #01831851

GREG BROWN949.798.4129


INVESTMENT ADVISORS

FINANCING ADVISOR

AUTO REPAIR

CAR WASH

ADDITIONAL FUEL STATION

SELF STORAGE PROPERTY UNDER

CONSTRUCTION

FOOD MART & WAITING AREA

FUEL STATION & FOOD MART

2 | INTRODUCTION |

WASH & MART

3 | EXECUTIVE SUMMARY |

EXECUTIVE SUMMARY

WASH & MART

PROPERTY DETAILS

ADDRESS: 750 N Escondido Blvd Escondido, CA 92025

RENTABLE BUILDING AREA: 27,112 SF

OCCUPANCY: 100.0%

YEAR OF COMPLETION: 1990

NUMBER OF BUILDINGS: 3

# OF FUEL PUMPS: 28

SITE AREA: 1.81 Acres

OWNERSHIP: Fee Simple

ASSESSOR PARCEL NUMBER: 229-180-90

ZONING: Commercial General

PRICE: $7,762,000CAP RATE: 6.90%

INVESTMENT OVERVIEWHFF, as exclusive advisor, is pleased to offer the extraordinary opportunity to purchase the fee simple interest in a two-tenant automotive service property (the “Property”), located in one of the most dynamic markets of San Diego County, Escondido. The property is leased to Wash & Mart and Star Auto Glass & Tint both on an Absolute NNN basis with approximately 12 years and 18 years left of original lease term respectively with fixed annual escalations. The Property is strategically located on a hard corner at the intersection of N Escondido Blvd and W Mission Avenue with over 34,600 cars per day passing the property. The property is surrounding by many national retailers including Stater Bros Markets, Food 4 Less, McDonalds, Wells Fargo, Burger King, Taco Bell, Dollar Tree, and Rite Aid.

INVESTMENT SUMMARY

PRICE: $7,762,000

YEAR ONE PROJECTED NOI1: $535,566

(1) Annual NOI is as of January 1, 2019.

MISSION AVENUE

ESCONDIDO BLVD.


WASH & MART

WASH & MART LEASE SUMMARY

TENANT: Wash & Mart (Anthony Squared, Inc)

SQUARE FEET: 20,877 SF

COMMENCEMENT DATE: 6/1/2015

EXPIRATION DATE: 5/31/2030

LEASE TYPE Absolute NNN

ANNUAL BASE RENT SCHEDULE:

ANNUAL RENT (CURRENT): $451,272

INCREASES: 1% Annually through 2020, 2% Annually thereafter

STAR AUTO GLASS & TINT

TENANT: Star Auto Glass & Tint (Firas Jebo and Raad Jebo)

SQUARE FEET: 6,235 SF

COMMENCEMENT DATE: 8/1/2016

EXPIRATION DATE: 7/31/2036

LEASE TYPE: Absolute NNN

ANNUAL BASE RENT SCHEDULE:

ANNUAL RENT (CURRENT): $76,644

INCREASES: 1.5% Annually

LEASE SUMMARIES


WASH & MART

STABLE CASH FLOW WITH LONG TERM STABILITY

• Long Term Leases: Wash & Mart has approximately 12 years remaining of fixed lease term remaining and Star Auto Glass & Tint has approximately 18 years of remaining fixed lease term offering long term cash flow for an investor. The operator of Wash & Mart also operates many other locations in Southern California, providing industry experience and stability for future investors.

• Attractive Rent Increases: Fixed 1-2% annual increases throughout the initial lease term and option periods.

• Strong Fuel Sales: The fuel station has historically been one of the top stations in Southern California based on annual volume.

INVESTMENT HIGHLIGHTS

ZERO OWNER RESPONSIBILITIES

Absolute NNN leases for both tenants provide no landlord responsibilities or management requirements.

INTERNET RESISTANT RETAIL

The Property consists of a range of auto service retail uses. This industry has outperformed other retail uses and is insulated from the effects of e-commerce.

EXCELLENT 1031 EXCHANGE OPPORTUNITY

• Strong Inflation Hedge: Scheduled annual fixed rental increases produce high NOI growth, enhancing future cash on cash returns and providing a strong hedge against inflation.

• Debt Free: The Property is marketed free and clear of existing financing, creating the opportunity to place new financing tailored to an investor’s desired returns.


WASH & MART

INVESTMENT HIGHLIGHTS (CONTINUED)

HIGH TRAFFIC, REGIONAL

RETAIL PROPERTY

• Strategic Location: The Property is strategically located at the corner of N Escondido Blvd and W Mission Avenue with over 34,600 cars per day passing the property. The property is surrounding by many national retailers including Stater Bros Markets, Food 4 Less, McDonalds, Wells Fargo, Burger King, Taco Bell, Dollar Tree, and Rite Aid.

• High Consumer Spending: Within 3 miles the total amount spent on gasoline exceeds $116 million annually. The average household spends above $2,348 annually on gas in Escondido which is far greater than the average US household of below $2,000 annually.

• Strong Demographics: Within a 3 mile radius of the property the population exceeds 155,000 with annual household income exceeding $70,000.

• Ideal Regional Access: The Property is less than a mile from the intersections of the I-15 Freeway and State Route 78 (two of San Diego’s most trafficked arterials), providing simple access to an expansive customer base.

MISSION AVENUE

ESCONDIDO BLVD.


WASH & MART

TENANT:Anthony Squared Inc., a California Corporation

ADDRESS: 750 North Escondido Blvd, Escondido, CA

DATE OF LEASE: June 1, 2015

LEASE EXPIRATION: May 31, 2030

LEASE TERM: 15 Years

RENEWAL OPTIONS:Three (3) Periods of Five (5) Years & One (1) Period of Fifty Four (54) Months

RENT SCHEDULE:

Current - $37,605.99 Per Month

1% Annual Rent Increases through June 1, 2020

2% Annual Rent Increases from June 1, 2020 - May 31, 2030

PERCENTAGE RENT: None

RIGHT OF FIRST REFUSAL: No purchase option or right of first refusal.

NO LESSOR OBLIGATION:

Rent received by Lessor shall be free and clear of any expenses to Lessor under this lease for the construction, care, maintenance, operation, replacement, repair, alteration, and improvement of or to the Premises.

TENANTS PRO RATA SHARE:

Common Area Charges: Pro Rata Share equal to 77% of the parcel. Parcel number 229-180-90-00Real Estate Taxes: Pro Rata Share equal to 77% of the parcel. Parcel number 229-180-90-00

REAL ESTATE TAXES:TENANT RESPONSIBLE

Tenant shall pay all property taxes imposed on the Premises and/or the improvements on the Premises.

INSURANCE:TENANT RESPONSIBLE

Tenant shall at all times during the Term of this Lease maintain at its sole cost both Property Insurance and Liability Insurance.

UTILITIES:TENANT RESPONSIBLE

Tenant shall make all arrangements for installation, upgrade or repair, and pay for all gas, electricity, water, telephone, internet, trash disposal, and all other utilities and services that may be provided to the Premises during the Term of this Lease.

REPAIRS AND MAINTENANCE:TENANT RESPONSIBLE

Tenant shall, at its sole cost and expense maintain in thorough repair and in good, safe and substantial order and condition, the Premises, along with and all equipment and appurtenances, including both structural and nonstructural parts of the Premises

REASSESSMENT PROTECTION:

Tenant shall take all available precautions to prevent the spill, discharge or release of motor fuel or any other hazardous materials onto the surface of the ground or into the soil or groundwater at and about the Premises.

LEASE ABSTRACT: CAR WASH & MART


WASH & MART

TENANT: Firas Jebo and Raad Jebo

ADDRESS: 750 North Escondido Blvd, Escondido, CA

DATE OF LEASE: August 1, 2016

LEASE EXPIRATION: July 31, 2036

LEASE TERM: 20 Years

RENEWAL OPTIONS: One (1) Period of Ten (10) Years

RENT SCHEDULE:$6,387 per month(rent escalates in August)

PERCENTAGE RENT: None

RIGHT OF FIRST REFUSAL: No purchase option or right of first refusal.

USE OF PREMISES:

Tenant shall have the right to use the premises for the primary purpose of selling and installing auto glass, cell phones and accessories.

TENANTS PRO RATA SHARE:

Common Area Charges: Pro Rata Share equal to 23% of the parcel. Parcel number 229-180-90-00Real Estate Taxes: Pro Rata Share equal to 23% of the parcel. Parcel number 229-180-90-00

REAL ESTATE TAXES:Tenant shall pay all property taxes imposed on the Premises and/or the improvements on the Premises.

INSURANCE (TENANT):Tenant shall at all times during the Term of this Lease maintain at its sole cost both Property Insurance and Liability Insurance.

COMMON AREA MAINTENANCE:

There are no CAM charges, however, Tenant shall be required to maintain and clean the area on a daily basis.

UTILITIES:Tenant shall pay for all utilities, including but not limited to electrical, gas, trash, water & sewer, telephone and internet service.

TENANT REPAIRS AND MAINTENANCE:

Tenant shall, at its sole cost and expense maintain in thorough repair and in good, safe and substantial order and condition, the Premises, along with and all equipment, including both structural and nonstructural parts of the Premises

LEASE ABSTRACT: STAR AUTO GLASS & TINT


WASH & MART

MISSION AVENUE

ESCONDIDO BLVD.


CONSTRUCTION


WASH & MART

W MISSION AVE

N E

SCO

ND

IDO

BLV

D


WASH & MART

SITE PLAN: W. MISSION AVENUE

N. E

SCO

ND

IDO

BO

ULE

VAR

D

FUEL STATION

CAR WASH

FOOD MART

FUEL STATION &FOOD MART

AU

TO R

EPAIR

12 | PROPERTY OVERVIEW |

PROPERTY OVERVIEW

WASH & MART

DEMOGRAPHICS

POPULATION

1-MILE 3-MILE 5-MILE

2017 TOTAL POPULATION: 14,898 200,165 474,340

2022 POPULATION: 15,726 210,710 500,933

POP GROWTH 2017-2022: 5.56% 5.27% 5.61%

AVERAGE AGE: 39.3 37 36.1

HOUSEHOLDS

2017 TOTAL HOUSEHOLDS: 5,048 64,107 139,919

HH GROWTH 2017-2022: 5.84% 5.55% 5.81%

AVERAGE HH INCOME: $97,337 $75,889 $78,176

HOUSING

MEDIAN HOME VALUE: $402,342 $362,348 $352,067

MEDIAN YEAR BUILT: 1970 1973 1976

ESCO

NDI

DO B

LVD.


CONSTRUCTION

MISSION AVENUE


WASH & MART

LOCATION MAP

DRIVE TIME ANALYSIS:CARLSBAD 29 minutes

DOWNTOWN SAN DIEGO 42 minutes

ORANGE COUNTY 85 minutes

LOS ANGELES 161 minutes


WASH & MART

WASH & MART

15 | AREA & MARKET OVERVIEW |

AREA & MARKET OVERVIEW

WASH & MART

21

SAN DIEGO TRENDS: ATTRACTING INSTITUTIONAL CAPITAL

85WALKSCORE

Average income with 3 mile radius is

8% above the San Diego County average

$825,901Average home value within a 3 mile radius

of residents hold a bachelors degree or higher (SD County is 36%)54%

HIGHLY EDUCATED WORKFORCE

ACCESS TO AMEN IT I ES

POIN

T LOM

A

4 Minutes – to Airport8 Minutes – to Harbor Island10 Minutes – to Ocean Beach11 Minutes – to Downtown17 Minutes – to UTC20 Minutes – to La Jolla

largest venture capital investment per capita ($434). There are 155 startups per every 100,000 residents.5thin venture capital investment into San Diego startups in 2016

$1.07BILL ION

Top 10FOR JOB SEEKERSby Forbes in 2017

#1 city for MILLENNIALS

in San Diego5 FORTUNE 500 , 1000 & GLOBAL 500 COMPAN IES

$220BILL ION IN GDP

SAN

DIEG

O

+13.0%San Diego County Job Growth since 2010

+55,224Additional jobs since 2011

+4.90%Financial Services Growth (through 2016)

+7.70%Construction Growth

(through 2016)

+3.10%Education/Health Sector Growth(through 2016)

BEST C I T I ES

by Rankings.com in 2016

21


85WALKSCORE







POIN

T LOM

A



$1.07BILL ION




$220BILL ION IN GDP

SAN

DIEG

O





(through 2016)


BEST C I T I ES


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POIN

T LOM

A



$1.07BILL ION




$220BILL ION IN GDP

SAN

DIEG

O





(through 2016)


BEST C I T I ES


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POIN

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A



$1.07BILL ION




$220BILL ION IN GDP

SAN

DIEG

O





(through 2016)


BEST C I T I ES


21


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POIN

T LOM

A



$1.07BILL ION




$220BILL ION IN GDP

SAN

DIEG

O





(through 2016)


BEST C I T I ES


21


85WALKSCORE







POIN

T LOM

A4 Minutes – to Airport8 Minutes – to Harbor Island10 Minutes – to Ocean Beach11 Minutes – to Downtown17 Minutes – to UTC20 Minutes – to La Jolla


$1.07BILL ION




$220BILL ION IN GDP

SAN

DIEG

O





(through 2016)


BEST C I T I ES


21


85WALKSCORE







POIN

T LOM

A4 Minutes – to Airport8 Minutes – to Harbor Island10 Minutes – to Ocean Beach11 Minutes – to Downtown17 Minutes – to UTC20 Minutes – to La Jolla


$1.07BILL ION




$220BILL ION IN GDP

SAN

DIEG

O





(through 2016)


BEST C I T I ES


21


85WALKSCORE







POIN

T LOM

A



$1.07BILL ION




$220BILL ION IN GDP

SAN

DIEG

O





(through 2016)


BEST C I T I ES


21


85WALKSCORE







POIN

T LOM

A



$1.07BILL ION




$220BILL ION IN GDP

SAN

DIEG

O





(through 2016)


BEST C I T I ES


21


85WALKSCORE







POIN

T LOM

A



$1.07BILL ION




$220BILL ION IN GDP

SAN

DIEG

O+13.0%

San Diego County Job Growth since 2010




(through 2016)


BEST C I T I ES


21


85WALKSCORE







POIN

T LOM

A



$1.07BILL ION




$220BILL ION IN GDP

SAN

DIEG

O





(through 2016)


BEST C I T I ES


SAN DIEGO TRENDS:


WASH & MART

San Diego County, is one of 58 counties in the state of California. San Diego stretches 65 miles from north to south, and 86 miles from east to west. Covering 4,261 square miles makes San Diego close to the size of the state of Connecticut. To the north are Orange and Riverside Counties, to the east is Imperial County, to the west is the Pacific Ocean, and to the south is the state of Baja California, Mexico. San Diego County includes 18 incorporated cities and 17 unincorporated communities. San Diego is the second largest county in the State of California with a total population of over 3,300,000.

SAN DIEGO LIFESTYLE

San Diego is recognized as one of the best places to live in Southern California. Having mild temperatures year-round, it is easy to attend major league sporting events, shop at the well-known Westfield Horton Plaza, and enjoy the maritime and resort activities along the 70 miles of local beaches.

San Diego County is also home to a number of amusement parks, including: Sea World, the San Diego Zoo Safari Park and Legoland California. The 100-year-old Balboa Park is home to more than a dozen museums, art galleries, and botanical gardens as well as the world-class San Diego Zoo. Two of California’s 21 Missions, Mission San Diego Alcala and Mission San Luis Rey, are also located in San Diego County. San Diego is home to nearly 100 breweries and is known as “The Craft Beer Capital of America”.

TRANSPORTATION

San Diego International Airport (a.k.a. Lindbergh Field) is a major commercial airport with both domestic and international flights that service routes to destinations within Canada and Mexico. San Diego also has a wide-ranging freeway system in addition to heavy rail services including Amtrak, Metrolink (which connects Oceanside with Los Angeles, Orange, Riverside, and San Bernardino counties), and the “Coaster” between Oceanside and San Diego. The San Diego Metropolitan Transit System also offers an easy-to-use network of public transportation that consists of both bus and trolley stops throughout the greater San Diego area.

EDUCATION

Education is a major strength of San Diego County. There are currently 64 college and university campuses, including the University of California, San Diego (UCSD). UCSD is one of the major driving forces for the technology industry in San Diego. Other major universities include San Diego State University and Cal State San Marcos, whose graduates also provide significant contributions to the overall region.

SAN DIEGO COUNTY


WASH & MART

SAN DIEGO RETAIL MARKET

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

(600)

(400)

(200)

0

200

400

600

800

Vacancy %Net Absorption

(SF)

Thou

sand

s

Net Absorption vs Vacancy

Net Absorption SF Total Vacancy %

EXISTING INVENTORY VACANCY YTD DELIVERIES

UNDER CONST SF

QUOTED RATESMARKET # BLDS TOTAL GLA VACANT SF VAC %

CENTRAL SAN DIEGO MARKET 4,522 39,253,179 1,123,359 2.90% 50,278 98,969 $26.08

EAST COUNTY MARKET 2,074 20,288,310 549,824 2.70% 0 14,322 $19.95

I-15 CORRIDOR MARKET 481 6,479,497 339,410 5.20% 0 0 $34.98

NORTH COUNTY MARKET 2,773 33,153,700 1,623,926 4.90% 2,231 49,606 $18.59

NORTH SAN DIEGO MARKET 1,375 17,283,268 613,312 3.50% 13,324 428,792 $34.16

SOUTH BAY MARKET 1,736 19,240,683 801,830 4.20% 0 134,075 $21.36

TOTALS 12,961 135,698,637 5,051,661 3.90% 65,833 725,764 $25.85

SAN DIEGO RETAIL MARKET

TOTAL RBA: 139,714,163

# OF BUILDINGS: 13,608

VACANCY: 3.7%

UNDER CONSTRUCTION (SF): 683,562

2016 DELIVERIES (SF): 555,334

2016 NET ABSORPTION (SF): 867,190

GROSS ASKING RENT/SF/YR: $22.58

Source: CoStar


WASH & MART

This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the Property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.

Additional information and an opportunity to inspect the Property will be made available upon written request to interested and qualified prospective investors. Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the Property unless and until such offer is approved by Owner, a written agreement for the purchase of the Property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.

The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the Property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the Property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF.

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

CONFIDENTIALITY AND CONDITIONS


WASH & MART

CAR WASH & FUEL STATION

©2018 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 26 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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INVESTMENT ADVISORS

NICK FOSTERDirector


DANIEL TYNERDirector

(949) [email protected]

CA Lic. #01458927

FINANCING ADVISOR

GREG BROWNSenior Director(949) 798-4129

[email protected] Lic. # 01335204

750 N. ESCONDIDO BOULEVARD | ESCONDIDO, CA CAR WASH & … · by many national retailers including...

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Transcript of 750 N. ESCONDIDO BOULEVARD | ESCONDIDO, CA CAR WASH & … · by many national retailers including...