Westside Plaza - f.tlcollect.com · Westside Plaza EXECUTIVE SUMMARY | 5 Property Description...

Westside Plaza42015–42065 10th Street West,Lancaster, California

KEN MCLEODFirst Vice President+1 310 550 2515Lic. [email protected]

TIM KURUZARAssociate+1 310 550 2671Lic. 01778384 [email protected]

EXCLUSIVE AGENTS:

CAPITAL MARKETS | Investment Properties

Westside Plaza

Westside Plaza

Table of ContentsEXECUTIVE SUMMARY | 1

MARKET & ASSET OVERVIEW | 2

FINANCIALS | 3

CBRE, Inc. operates within a global family of companies with many subsidiaries

and/or related entities (each an “Affiliate”) engaging in a broad range of com-

mercial real estate businesses including, but not limited to, brokerage services,

property and facilities management, valuation, investment fund management

and development. At times different Affiliates may represent various clients with

competing interests in the same transaction. For example, this Memorandum

may be received by our Affiliates, including CBRE Investors, Inc. or Trammell

Crow Company. Those, or other, Affiliates may express an interest in the property

described in this Memorandum (the “Property”) may submit an offer to purchase

the Property and may be the successful bidder for the Property. You hereby

acknowledge that possibility and agree that neither CBRE, Inc. nor any involved

Affiliate will have any obligation to disclose to you the involvement of any Affiliate

in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will

act in the best interest of the client(s) it represents in the transaction described

in this Memorandum and will not act in concert with or otherwise conduct its

business in a way that benefits any Affiliate to the detriment of any other offer or

prospective offer or, but rather will conduct its business in a manner consistent

with the law and any fiduciary duties owed to the client(s) it represents in the

transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and

benefit in determining whether you desire to express further interest in the ac-

quisition of the Property.

This Memorandum contains selected information pertaining to the Property and

does not purport to be a representation of the state of affairs of the Property or

the owner of the Property (the “Owner”), to be all-inclusive or to contain all or

part of the information which prospective investors may require to evaluate a

purchase of real property. All financial projections and information are provided

for general reference purposes only and are based on assumptions relating to

the general economy, market conditions, competition and other factors beyond

the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions

and other information provided and made herein are subject to material varia-

tion. All references to acreages, square footages, and other measurements are

approximations. Additional information and an opportunity to inspect the Prop-

erty will be made available to interested and qualified prospective purchasers.

In this Memorandum, certain documents, including leases and other materials,

are described in summary form.

These summaries do not purport to be complete nor necessarily accurate de-

scriptions of the full agreements referenced. Interested parties are expected

to review all such summaries and other documents of whatever nature inde-

pendently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers,

Affiliates or representatives make any representation or warranty, expressed or

implied, as to the accuracy or completeness of this Memorandum or any of its

contents, and no legal commitment or obligation shall arise by reason of your

receipt of this Memorandum or use of its contents; and you are to rely solely

on your investigations and inspections of the Property in evaluating a possible

purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or

all expressions of interest or offers to purchase the Property, and/or to termi-

nate discussions with any entity at any time with or without notice which may

arise as a result of review of this Memorandum. The Owner shall have no legal

commitment or obligation to any entity reviewing this Memorandum or making

an offer to purchase the Property unless and until written agreement(s) for the

purchase of the Property have been fully executed, delivered and approved by

the Owner and any conditions to the Owner’s obligations therein have been

satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its con-

tents are of a confidential nature, that you will hold and treat it in the strictest

confidence and that you will not disclose this Memorandum or any of its con-

tents to any other entity without the prior written authorization of the Owner or

CBRE, Inc. You also agree that you will not use this Memorandum or any of its

contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing

the Property, kindly return this Memorandum to CBRE, Inc.

Affiliated Business Disclosure & Confidentiality Agreement

Westside Plaza Executive Summary

Westside Plaza

EXECUTIVE SUMMARY | 4

Investment Summary

CBRE is pleased to offer Westside Plaza, a rare opportunity to own newly constructed

multi-tenant retail in the Antelope Valley Market of Los Angeles County. Westside Plaza is

located on the signalized NW corner of 10th St. W and Columbia Way, adjacent to the 14

FWY on and off ramps. The center provides good ingress and egress from both streets.

This 11 tenant center is comprised of an internet resistant tenant mix, staggered lease roll-

over, and a 2,400 square foot development pad opportunity. Westside Plaza is 88% occu-

pied, providing additional income opportunity through minimal lease up. Tenants include a

gym, 2 medical uses, a salon, and a real estate escrow company. The property will also be

delivered free and clear of any debt obligations.

PROPERTY NAME Westside Plaza

ADDRESS 42015 – 42065 10th Street West Lancaster, CA 93534

PRICE $6,950,000

PRICE/SQUARE FOOT $263.75

CAP RATE (ACTUAL) 7.85%

CAP RATE (PROFORMA) 8.82%

BUILDING SIZE ± 28,751 SF

LAND AREA ± 126,724 SF

OCCUPANCY 87%

YEAR BUILT 2009

ZONING LRLI

DEMOGRAPHICS (1 MILE)

Average Household Income = $81,132Average Housing Value = $305,077

Property Summary

Westside Plaza


Westside Plaza


Property Description

Westside Plaza is an 87% occupied 28,751 square foot traditional retail strip center on

2.91 acres of land in the city of Lancaster, CA. The property is located on the NW corner

of 10th St. W and Columbia Way at a signalized intersection. With newer construction and

a staggered lease roll over, Westside Plaza provides a management friendly opportunity to

own multi-tenant retail in Southern California. Additional NOI growth will be realized through

lease up, rental rate upside, and a development pad. An internet resistant tenant mix

provides the stability investors crave.

Investment Highlights

Pad For Development There is a vacant pad for development on the hard corner of the shopping center. A new

owner will have the opportunity to develop a building up to 2,400 square feet with a drive

through.

Freeway AccessWestside Plaza is located near the 14 Freeway on/off ramps of Avenue M/Columbia Way.

Main on Main IntersectionWestside Plaza is located at the signalized intersection of 10th Street West & Avenue M /

Columbia Way.

Diverse Tenant MixThere is a diverse mix of internet resistant retail and office tenants. This attracts a broad

customer base and increases synergy between tenants.

Newer ConstructionBuilt in 2009 and well maintained, there is little to no deferred maintenance.

Westside Plaza


Westside Plaza Market & Asset Overview


Market Summary

Lancaster OverviewLancaster is a charter city in northern Los Angeles County, in the Antelope Valley of the

western Mojave Desert in Southern California. Lancaster currently ranks as the 30th largest

city in California, and the 148th largest city in the United States. Lancaster is part of a twin

city complex with its southern neighbor Palmdale and together they are the principal cities

within the Antelope Valley region and California’s High Desert.

Lancaster is located approximately 70 miles (110 km) north (by highway) of downtown Los

Angeles, near the Kern County line. It is separated from the Los Angeles Basin by the San

Gabriel Mountains to the south, and from Bakersfield and the San Joaquin Valley by the

Tehachapi Mountains to the north.

The population of Lancaster has grown from 37,000 residents at the time of incorporation in

1977, to 157,826 people as of 2012. which makes it the largest city in the California portion

of the Mojave Desert.

Lancaster’s history is rooted in flight; evidenced by the major employers in the area, includ-

ing Edwards Air Force Base, China Lake Naval Air Weapons Station, Lockheed Martin Co.,

Northrop-Grumman, and Boeing. The location’s semi-arid year round climate make it an

ideal location for aircraft testing. It has been the United States’ primary testing and devel-

opment location since the early 1940s.

Lancaster, California

Westside Plaza



FIVE-MILE RADIUS THREE- MILE RADIUS ONE-MILE RADIUS

2013 Estimated Population 203,838 50,642 409

2018 Projected Population 218,266 53,739 408

2010 Census Population 192,142 48,154 414

2000 Census Population 151,951 40,938 483

Growth 2010-2013 6.09% 5.17% -1.16%

Growth 2013-2018 7.08% 6.12% -0.38%

2013 Estimated Median Age 32.08 32.77 45.15

2013 Estimated Average Age 34.63 35.62 43.06

2013 Estimated Households 63,227 17,475 146

2018 Projected Households 67,205 18,399 145

2010 Census Households 60,478 16,819 149

2000 Census Households 50,114 14,938 177

Growth 2010-2013 4.55% 3.90% -1.76%

Growth 2013-2018 6.29% 5.29% -0.81%

2013 Est. Average Household Size 3.2 2.88 2.5

2013 Est. Median Household Income $52,383 $50,246 $52,826

2018 Prj. Median Household Income $54,606 $52,703 $57,952

2000 Cen. Median Household Income $44,292 $43,720 $44,961

2013 Est. Average Household Income $66,849 $66,521 $81,132

2013 Estimated Per Capita Income $20,735 $22,954 $28,947

2013 Estimated Housing Units 69,357 19,433 163

2013 Estimated Occupied Units 63,227 17,475 146

2013 Estimated Vacant Units 6,129 1,958 17

2013 Est. Owner Occupied Units 38,984 8,950 105

2013 Est. Renter Occupied Units 24,243 8,525 41

2013 Est. Median Housing Value $221,453 $235,144 $272,910

2013 Est. Average Housing Value $245,927 $269,784 $305,077

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Westside Plaza


EXECUTIVE SUMMARY | 9Westside Plaza



Aerial Map

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Westside Plaza


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Building A42015 10th Street West

Building B42035 10th Street West 42051 10th Street West


Site Plan

Westside Plaza



Aerial Map

Westside Plaza

42015–42065 10th Street West, Lancaster, California

Westside Plaza



Aerial Map

Westside Plaza


Westside Plaza Financials

Westside Plaza


PRICE $6,950,000

PRICE/SQFT $263.75

CAP RATE (CURRENT) 7.85%

CAP RATE (PROFORMA 90% LEASED) 8.82%

CURRENT PROFORMA

GROSS RENT: $685,420 $685,420

LESS: VACANCY: ($115,444) -17% ($68,542) -10%

EXPENSE RECAPTURE: $103,315 $124,204

TOTAL RENT: $673,292 $741,083

BILLBOARD INCOME: $10,000 $10,000

LESS: EXPENSES: ($138,005) ($138,005)

NET INCOME: $545,287 $613,078

Financials

Pricing Analysis

Westside Plaza

FINANCIALS | 15


SUITE TENANT SQ.FT. MONTHLY RENT RENT/SQFT LEASE START DATE

LEASE END DATE LEASE TYPE OPTIONS

B-1/101-1237 Ladies 1st 9,732 $19,853.28 $2.04 May 2009 April 2019 NNN 10 yrs

B-2/105 My Lounge 3,180 $5,565.00 $1.75 April 2014 March 2018 NNN 3 yrs

B-2/113-115 Federal Escrow 1,858 $3,530.20 $1.90 Aug 2009 Aug 2015 NNN

B-2/101-103 Pampered Nails 1,230 $2,091.00 $1.70 Feb 2011 Jan 2016 NNN 10 yrs

B-2/104 Vacant 1,337 $2,540.30 $1.90 NNN

B-2/115-117 ATC Taekwondo 1,230 $1,783.50 $1.45 May 2010April 2013

MTMNNN

One (1) - Two (2) YearFair Market - 3% annual increases

B-2/105-107 Mt. Sinai Center 1,337 $3,543.05 $2.65 Jan 2013 Oct 2017 NNN 5 yrs (2x5)

B-2/109-111 Orthopedic 1,337 $2,406.60 $1.80 June 2014 June 2017 NNN

Building CWashington Wealth Management

3,490 $4,537.00 $1.30 Oct 2014 Sept 2019 GrossTwo (2) - Five (5) YearCPI 3% min - 5% Max annual increases

Building D Aladdin Bail Bonds 1,620 $4,188.43 $2.59 April 2011 March 2016 NNNOne (1) - Five (5) YearFair Market - 3% annual increases

Vacant Pad 2,400 $7,080.00 $2.95 NNN

TOTALS 28,751 $57,118.36

13.00% VACANT 3,737 $9,620.30

87.00% OCCUPIED 25,014 $47,498.06

RENT ROLL

Westside Plaza

FINANCIALS | 16

42015–42065 10th Street West, Lancaster, California

CA

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CBRE © 2015 All Rights Reserved. All information included in this proposal pertaining to CBRE including but not limited to its operations, employees, technology and clients are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior written consent of CBRE. This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agree-ment or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto.

This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Westside PlazaEXCLUSIVE AGENTS

KEN MCLEODFirst Vice President+1 310 550 2515Lic. [email protected]

TIM KURUZARAssociate+1 310 550 2671Lic. 01778384 [email protected]

Westside Plaza - f.tlcollect.com · Westside Plaza EXECUTIVE SUMMARY | 5 Property Description...

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