Woodlands Plazaf.tlcollect.com/fr2/215/45262/Woodlands_Plaza_OM.pdf · 2015-02-03 · 1 530 - 660...

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530 - 660 East Los Angeles Avenue | Simi Valley, CAOffering Memorandum

Woodlands PlazaVons-Anchored Shopping Center

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Table of Contentsinvestment summary tenant Overviewaerial mapFinancial analysisDemOgraphicsFinancial Overviewarea Overview

Disclaimer

this valuation analysis or broker opinion of value is not an appraisal and has not been performed in accordance with the uniform standards of professional appraisal practice. neither you, nor any third parties, may rely on this analysis for any tax purposes, estate work, litigation, lending or any other matter other than your direct use in connection with a contemplated transaction.

aleX KOZaKOv First vice president+1 213 613 3031lic. [email protected]

patricK waDeFirst vice president+1 213 613 3071lic. [email protected]

heather garrett client services specialist+1 213 613 3367lic. [email protected]

maXX cOhenassociate+1 213 613 3117lic. [email protected]

anDrew tashjian +1 213 613 3024lic. [email protected]

EXCLUSIVELY LISTED BY:

larry tanjivice president+1 805 465 1677lic. [email protected]

scOtt siegelsenior associate+1 805 465 1633lic. [email protected]

lOcal marKet eXperts:

TAX MAP SITE PLANINVESTMENT SUMMARY Woodlands Plaza530-660 E. Los Angeles AvenueSimi Valley, CA 93065

OFFering price: $17,200,000nOi (year 1): $1,176,324cap rate: 6.84%BuilDing siZe: 61,373 sFlanD area: 292,798 sFOccupancy 80.8%year Built/renOvateD: 1981/1983/1990traFFic cOunts: 29,623: los angeles ave.

8,126: sinaloa ave.majOr tenants: chase Bank, Fantastic sam’s, goodwill, h&r Block,

Frazee paint, subway, vons (nap), pep Boys (nap)

TAX MAP SITE PLAN

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Property Summary

• year 1 cap rate of 6.84% and projected 8.1% cap rate Fully stabilized (year 3)• existing 81% Occupancy, allowing significant upside through lease-up• center includes national and regional tenants including vons (nap), chase Bank,

goodwill, subway, h&r Block, Frazee paint, pep Boys (nap) and coco’s (nap)• vons has recently extended their lease and put several million Dollars into upgrading

this location• chase Bank has Deposits of almost $90 million (2nd highest in simi valley)

Rare Established Southern California Grocery-Anchored Center with Strong Initial Return Plus Upside

INVESTMENT HIGHLIGHTS

Great Intrinsic Value with Future Exit Strategy

• several leases signed During recession - most tenants at or Below market rates

• attractive assumable non-recourse Debt (Fixed 4.28%) with ability to place 2nd loan for higher leverage

• pride of Ownership: Over two million Dollars invested in upgrades and renovations in 2013

• Offering consists of 4 parcels totaling 6.72 acres of land - ability to sell Off parcels separately for Future exit strategy or to lower Basis

• property consists of established tenants on triple-net leases with staggered lease expirations• affluent southern california community - Over $108,000 average hh income in 3-mile

radius• high traffic location Between two signalized intersections (almost 38,000 cars/Day)• multiple points of access along e los angeles avenue, sinaloa road, and 5th street• within two Blocks from three elementary schools and One middle school• city population of almost 130,000 - Over 13% population growth since 2000

Strong Shopping Center Location in Growth Southern California

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Executive Summarycurrently operating at 81% occupancy, woodlands plaza offers investors the rare opportunity to acquire a stabilized shopping center with strong initial returns plus a significant upside through lease-up. the investment offers an excellent year 1 cap rate of 6.7% and with the upside through lease-up and rental growth, stabilizes at an 8.1% cap rate. investors also have the opportunity to assume an attractive non-recourse loan with extremely favorable terms (fixed 4.28% interest rate; due in 2023) with the option of placing additional mezzanine debt.

the shopping center consists of 61,373 sF of gla on 4 parcels totaling over 6.72 acres of land and is anchored by vons (nap). vons recently exercised a 5-year option to extend their lease and also spent several million dollars remodeling their unit. Other notable tenants at the center include pep Boys (nap), goodwill, chase Bank, subway, h&r Block, Frazee paint, and coco’s (nap). in 2013, woodlands plaza received over two million dollars in renovations and upgrades by the current ownership, including bringing the property up to full aDa compliance. the property also contains full nnn leases with all current tenants.

situated at both signalized intersections of e los angeles avenue and sinaloa road (almost 38,000 cars/day) and e los angeles avenue and 5th street, woodlands plaza enjoys excellent ingress/egress from all three streets. the center is located just one mile south of the 118 Freeway (113,000 cars/day) and lies within two blocks of four different day schools, making it a convenient shopping destination for many families and residents. simi valley is a growing, affluent southern california community, with over a 4% projected population growth (2014-2019) and an average household income in excess of $108,000 (3-mile radius).

CBRE is pleased to offer for sale Woodlands Plaza - an established grocery-anchored shopping center located in Simi Valley, CA.

Tenant Overview

Goodwillgoodwill industries international inc. is an american nonprofit 501(c)(3) organization that provides job training, employment placement services, and other community-based programs for people who have disabilities. in addition, goodwill may hire veterans, individuals that lack education or job experience, or face employment challenges.

goodwill is funded by a massive network of retail thrift stores which operate as nonprofits as well. goodwill operates as a network of 165 independent, community-based organizations in venezuela, Brazil, mexico, panama, uruguay, the united states, canada, and eight other countries. in 2011, goodwill collectively earned more than $4 billion and used 82 percent of that revenue to provide employment, training, and support services to more than 4.2 million individuals. website: goodwill.org

revenue: $3.53 billion (2012)

Founded: 1902

Fantastic SamsFantastic sams is a chain of haircut and beauty salons in the united states and canada.

with over 1,250 locations, it is one of the largest full-service salon chains in the u.s., although each store is an independent franchise. Fantastic sams was founded in 1974 by sam ross in memphis, tennessee. Franchising begin in 1976, under the title “incredible sam’s,” but was changed to “Fantastic sams.”

the company also markets haircare products. website: fantasticsams.com

# of locations: Over 1,250

Founded: 1974

H&R Blockh&r Block is a tax preparation company in the united states, claiming more than 24.5 million tax returns worldwide, with offices in canada, australia, Brazil and india. the Kansas city-based company also offers banking, payroll, personal finance, and business consulting services. Founded in 1955 by brothers henry w. Bloch and richard Bloch, h&r Block currently operates 11,000 retail tax

offices in the united states, plus another 1,700 abroad. Block offers its own consumer tax software called h&r Block at home (formerly taxcut), as well as online tax preparation and electronic filing from their website. website: hrblock.com

nyse: hrB

net income: $455 million (2012)

# of employees: 2,500

Chase Bankjp morgan & chase co. (nyse: jpm) is one of the largest financial institutions in the us, as well as one of the most respected in the world. jpm, in its current structure, is the result of the combination of several large u.s. banking companies over the last decade including chase manhattan Bank, j.p. morgan & chase co., Bank One, Bear stearns, and washington mutual. jp morgan chase is a leading global financial

services firm with assets of $2.3 trillion. the company operates in more than 60 countries and has over 260,000 employees. they are one of the leaders in investment banking, financial services for consumers, small businesses and commercial banking, financial transaction processing, asset management capitalization, and they have the third largest deposit base. website: chase.com

nyse: jpm

net income: $20.53 billion (2012)

# of employees: 260,965

Tenant Overview (cont.)

Subwaysubway is an american fast food restaurant franchise that primarily sells submarine sandwiches and salads. it is owned and operated by Doctor’s associates, inc. subway is one of the fastest growing franchises in the world, with 42,826 restaurants in 108 countries and territories as of October 2014. it is the largest single-brand restaurant chain and the

largest restaurant operator globally. subway’s international headquarters is in milford, connecticut, and there are five regional centers that provide support to subway’s international operations. website: subway.com

# of locations: 42,826

Founded: 1965

Vons (Not a Part)

vons is a southern california and southern nevada supermarket chain and a division of safeway, inc. it is headquartered in arcadia, ca and operates stores under the vons and pavilions banners. charles von der ahe opened a 20-foot wide store named von’s groceteria in downtown los angeles, ca in 1906. in 1988, safeway

sold most of its stores in southern california and southern nevada to vons in exchange for an ownership stake. in april 1997, safeway exercised its option to acquire full control of the company, and vons has since operated as a subsidiary. most of the safeway brands and advertising campaigns are used by the vons stores. in march 2014, cerberus capital management (which also owns rival grocery chain albertsons) agreed to terms to purchsae vons’ parent, safeway. website: vons.com

# of locations: 324

Founded: 1906

Pep Boys (Not a Part)

the pep Boys: manny, moe, and jack (branded as pep Boys) is a full-service and tire automotive aftermarket chain. the first store, originally named pep auto supplies, was founded in philadelphia, pennsylvania in 1921 by manny rosenfeld, moe strauss, jack jackson, and moe radavitz. currently

headquartered in the allegheny west section of philadelphia, pep Boys operates 798 stores and approximately 7,000 service bays in 35 states and puerto rico. along with its full-service vehicle maintenance and repair capabilities, the company also services the commercial auto parts delivery market. it is one of the leading sellers of replacement tires in the united states, and in 2005 it was named one of the 500 fastest-growing u.s. companies. website: pepboys.com

nyse: pBy

# of locations: 798

Frazee Paint since 1896, Frazee paint has grown into a leading manufacturer

and retailer of paint and coatings throughout california, arizona and nevada. the Frazee product line consists primarily of architectural, commercial, industrial and government specification coatings. in addition, Frazee offers an extensive line of nationally recognized wallcovering brands, spray equipment, and painting tools. the Frazee corporate offices, manufacturing facility and

main distribution center are located in san Diego, california. From this facility, Frazee produces more than 12 million gallons of paint each year while Frazee trucking fleet distributes to nearly 100 retail stores and numerous dealers throughout california, arizona and nevada. in addition, Frazee distributes products internationally to dealers located in mexico, guam and china. website: brands.sherwin-williams.com/frazee

Founded: 1896

headquarters: san Diego, ca

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Financial AnalysisExECUTIVE SUMMARy

property type retail

property address 530 e lost angeles ave. simi valley, ca

total land size 292,298 sF

size of improvements 61,373 sF

currently vacant as of 11/1/14 11,757 sF

current Occupancy as of 11/1/14 80.84%

projected Occupancy as of 4/1/15 80.84%

acQuistiOn & resiDual summarypurchase price as of april 1, 2015 $280 psF

pricing sensitivity matrix

purchase price psF year 1 cap

rateyear 3 cap

rateall cash

irrleveraged

irr

$17,200,000 $280.30 6.84% 8.06% 10.62% 14.13%

net residual value as of september 31,2023 $24,199,000

net residual per square Foot $395

residual capitalization rate 7.25%

residual cost of sale 2.00%

all cash irr 10.62%

[1] leveraged analysis is based on existing assumable financing. loan is with prudential mortgage capital company, llc fixed at 4.28% until loan maturity at march 2023. Defeaseance pre-payment penalty. a 2nd trust deed can be placed on the property up to 65% ltv. analysis assumes the property is sold 3-2023.

leverage summary [1]

loan assumptioninitial loan Funding (as of apr-15) $7,521,385loan-to-value ratio (initial Funding) 43.73%Funding Date Feb-13maturity Date mar-23remaining loan term During analysis 8.0 years

amortization period 30 yearsinitial interest Only period (if any) -interest rate 4.28%loan constant 5.92%assumption Fee 1.00%initial Debt yield 15.64%Debt service coverage ratio (nOi) 2.54xDebt service coverage ratio (cF) 2.02x

purchase price $17,200,000total initial loan principal ($7,521,385)total initial loan Fees 75,214holdbacks and escrows 0 initial equity $9,753,829

leverageD irr 14.13%

prOperty DescriptiOn

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SUMMARy OF FINANCIAL ASSUMPTIONS

glOBalanalysis periodcommencement Date 4/1/2015end Date 3/31/2023term 8 years

area measuresBuilding square Feet (nrsF) 61,373 sF

growth ratesconsumer price index (cpi) 3.00%Other income growth rate 3.00%Operating expenses 3.00%real estate taxes 2.00%market rent growth (1)

cy 2016 – 6.10% cy 2017 – 7.00% cy 2018 – 5.60% cy 2019 – 3.50% cy 2020 – 3.00% cy 2021 – 3.00% cy 2022 – 3.00% cy 2023 – 3.00% cy 2024 – 3.00% cy 2025+ – 3.00%

general vacancy loss 3.00% [2]

capital reserves (cy 2015 value)

$0.10psF

vacant space leasingOccupancy and absorptionprojected vacant as of 4/1/15 11,757 sFcurrently vacant as of 11/1/14 11,757 sF% vacant as of 11/1/14 19.16%absorption period 9 month(s)absorption period start Date 4/1/2015First absorption Occurs On 7/1/2015last absorption Occurs On 1/1/2016

Financial terms2015 monthly market rent see rent rollrent adjustment 2.00% annuallylease term 5 yearsexpense reimb. type nnnrent abatements 3 month(s)ti’s ($/nrsF) see rent rollcommissions 6.00%

eXpenses

Operating expense source 2015 Forecast

management Fee (% of egr) 2.50%

real estate taxes reassessed yes [3]

millage rate 1.082900% special assessments $3,912

secOnD generatiOn leasing

retention ratio 70% 70% 70% 70% 70% 70%

Financial terms2015 monthly market rent $1.25 psF $1.50psF $1.75psF $2.00psF $2.25psF $2.50psFrent adjustment 2.00% annually 2.00% annually 2.00% annually 2.00% annually 2.00% annually 2.00% annuallylease term 5 years 5 years 5 years 5 years 5 years 5 yearsexpense reimbursement type nnn nnn nnn nnn nnn nnn

tenanting costsrent abatements new 3 month(s) 3 month(s) 3 month(s) 3 month(s) 3 month(s) 3 month(s) renewal 3 month(s) 3 month(s) 3 month(s) 3 month(s) 3 month(s) 3 month(s) weighted average 3.00 month(s) 3.00 month(s) 3.00 month(s) 3.00 month(s) 3.00 (month(s) 3.00 month(s)

tenant improvements ($/nrsF) new $15.00 psF $10.00 psF $10.00 psF $20.00 psF $10.00 psF $15.00 psF renewal $0.00 psF $0.00 psF $0.00 psF $0.00 psF $0.00 psF $0.00 psF weighted average $4.50 psF $3.00 psF $3.00 psF $6.00 psF $3.00 psF $4.50 psF

commissions new 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% renewal 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% weighted average 3.90% 3.90% 3.90% 3.90% 3.90% 3.90%

Downtime new 9 month(s) 9 month(s) 9 month(s) 6 month(s) 6 month(s) 6 month(s) weighted average 3 month(s) 3 month(s) 3 month(s) 2 month(s) 2 month(s) 2 month(s)

notes:all market rates are stated on calendar-year basis.[1] market rent growth projections are based upon cBre econometric advisors’ 2014 Q2 retail forecast for santa clarita valley through cy 2019, with 3% annual increases modeled thereafter.[2] general vacancy loss factors include losses attributable to projected lease-up, rollover downtime, and fixturing downtime.[3] real estate taxes have been reassessed at the estimated purchase price based on a mileage rate of 1.082900% plus special assessments of $3,912.

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cash FlOw prOjectiOnsFiscal year ending - march 31 2016 2017 2018 2019 2020 2021 2022 2023 2024 physical Occupancy 90.70% 96.81% 99.35% 95.24% 99.35% 93.22% 93.04% 99.02% 99.51% Overall economic Occupancy [1] 90.17% 90.95% 96.09% 95.80% 92.99% 91.73% 84.47% 95.73% 96.44% weighted average market rent $1.88 $1.97 $2.10 $2.22 $2.28 $2.38 $2.41 $2.49 $2.57 weighted average in place rent [2] $1.75 $1.70 $1.87 $1.97 $1.95 $2.06 $2.00 $2.37 $2.46 total Operating expenses psF per year $7.08 $7.27 $7.50 $7.68 $7.87 $8.05 $8.22 $8.55 $8.78

[3]Fy 2016

revenues $/sF/mO scheduled Base rent gross potential rent $1.82 $1,343,105 $1,381,731 $1,411,009 $1,463,256 $1,528,096 $1,589,426 $1,719,867 $1,782,785 $1,825,254 absorption & turnover vacancy (0.15) (107,257) (49,567) (13,282) (69,490) (14,890) (97,306) (133,637) (22,149) (11,538) Base rent abatements (0.09) (68,251) (119,595) (26,565) (13,061) (85,350) (76,686) (215,632) (30,873) (14,052) total scheduled Base rent 1.59 1,167,597 1,212,569 1,371,162 1,380,705 1,427,856 1,415,434 1,370,598 1,729,763 1,799,664 expense reimbursements 0.59 435,851 479,017 503,030 492,626 526,251 504,808 519,963 566,365 582,052 goodwill signage 0.01 4,836 4,981 5,131 5,284 5,443 5,606 5,774 5,948 6,126 enterprise parking 0.00 2,418 2,491 2,565 2,642 2,721 2,803 2,887 2,974 3,063tOtal grOss revenue 2.19 1,610,702 1,699,058 1,881,888 1,881,257 1,962,271 1,928,651 1,899,222 2,305,050 2,390,905 general vacancy loss 0.00 0 0 (35,329) 0 (44,425) 0 0 (47,667) (60,535)eFFective grOss revenue 2.19 1,610,702 1,699,058 1,846,599 1,881,257 1,917,846 1,928,651 1,899,222 2,257,383 2,330,370Operating eXpenses janitorial (0.01) (5,952) (6,131) (6,315) (6,504) (6,699) (6,900) (7,107) (7,321) (7,540) landscaping (0.03) (19,703) (20,294) (20,903) (21,530) (22,176) (22,841) (23,526) (24,232) (24,959) repairs & maintenance (0.03) (25,407) (26,169) (26,954) (27,763) (28,596) (29,454) (30,337) (31,248) (32,185) parking (0.01) (7,865) (8,100) (8,343) (8,594) (8,852) (9,117) (9,391) (9,672) (9,963) security (0.04) (32,684) (33,665) (34,675) (35,715) (36,786) (37,890) (39,027) (40,198) (41,404) utilities (0.07) (53,993) (55,613) (57,281) (59,000) (60,770) (62,593) (64,470) (66,404) (68,397) administrative (0.00) (830) (855) (881) (907) (934) (962) (991) (1,021) (1,052) insurance (0.08) (56,574) (58,271) (60,020) (61,820) (63,675) (65,585) (67,552) (69,579) (71,666) real estate taxes (0.26) (191,102) (194,846) (198,665) (202,560) (206,533) (210,585) (214,719) (218,935) (223,235) management Fee (n/r) (0.05) (40,268) (42,476) (46,164) (47,031) (47,946) (48,216) (47,481) (56,435) (58,259)tOtal Operating eXpenses (0.59) (434,378) (446,420) (460,201) (471,424) (482,967) (494,143) (504,601) (525,045) (538,660)net Operating incOme 1.60 1,176,324 1,252,638 1,386,358 1,409,833 1,434,879 1,434,508 1,394,621 1,732,338 1,791,710capital cOsts tenant improvements (0.23) (166,563) (96,717) (12,412) (7,986) (46,211) (72,900) (154,627) (19,117) (4,697) leasing commissions (0.09) (69,782) (92,473) (18,952) (15,272) (60,784) (76,392) (149,520) (28,716) (9,004) capital reserves (0.01) (6,183) (6,369) (6,560) (6,757) (6,959) (7,168) (7,383) (7,605) (7,833)tOtal capital cOsts (0.33) (242,528) (195,559) (37,924) (30,015) (113,954) (156,954) (311,530) (55,438) (21,534)Operating cash FlOw $1.27 $933,796 $1,057,079 $1,348,434 $1,379,818 $1,320,925 $1,278,048 $1,083,091 $1,676,900 $1,770,176acQuisitiOn & resiDual sale acquisition cost 7,521,385 0 0 0 0 0 0 0 (6,179,733) all cash net residual value [4] (75,214) 0 0 0 0 0 0 0 0 irrcash FlOw BeFOre DeBt ($17,200,000) $933,796 $1,057,079 $1,348,434 $1,379,818 $1,320,925 $1,278,048 $1,083,091 $25,895,877 10.62%tOtal Financing OBligatiOn [5] loan Funding / payoff 7,521,385 0 0 0 0 0 0 0 (6,179,733) loan Fees (75,214) 0 0 0 0 0 0 0 0 leveraged annual Debt service 0 (462,842) (462,842) (462,842) (462,842) (462,842) (462,842) (462,842) (462,842) irrcash FlOw aFter DeBt ($9,753,829) $470,954 $594,237 $885,592 $916,976 $858,083 $815,206 $620,249 $19,253,302 14.13%

nOi return 6.84% 7.28% 8.06% 8.20% 8.34% 8.34% 8.11% 10.07% unleverageD cash return 5.43% 6.15% 7.84% 8.02% 7.68% 7.43% 6.30% 9.75% leverageD cash return 4.83% 6.09% 9.08% 9.40% 8.80% 8.36% 6.36% 12.45% Debt service coverage ratio (nOi) 2.54x 2.71x 3.00x 3.05x 3.10x 3.10x 3.01x 3.74x Debt service coverage ratio (cF) 2.02x 2.28x 2.91x 2.98x 2.85x 2.76x 2.34x 2.62x rolling - all cash irr 3.87% 10.03% 9.67% 9.52% 9.04% 8.29% 10.63% 10.62% rolling - leveraged irr 2.79% 13.85% 13.20% 12.89% 12.05% 10.83% 14.26% 14.13%

[1] this figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatements.[2] thisfigure does not include any amount related to expense reimbursements. Only scheduled Base rent and Fixed/cpi increases are included in this calculation, which is based on the weighted-average physical occupancy.[3] Based on 61,373 sF[4] net residual value is calculated by dividing year 9 nOi by the residual cap rate of 7.25% and applying a 2.00% cost of sale.[5] see schedule titled “Detailed leverage summary” for further detail.

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in-place anD prOjecteD nOi summaryin-place nOi apr-15, annualized $ psF pro Forma nOi apr-15 to mar-16 $ psF

size of improvements 61,373 sF 61,373 sFrevenues scheduled Base rent gross potential rent $1,320,420 $21.51 $1,343,105 $21.88 absorption & turnover vacancy (184,452) (3.01) (107,257) (1.75) Base rent abatements 0 0.00 (68,251) (1.11)total scheduled Base rent 1,135,968 18.51 1,167,597 19.02expexpense reimbursements 384,036 6.26 435,851 7.10 goodwill signage 4,800 0.08 4,836 0.08 enterprise parking 2,400 0.04 2,418 0.04tOtal grOss revenue 1,527,204 [1] 24.88 1,610,702 26.24 general vacancy loss 0 0.00 0 0.00eFFective grOss revenue 1,527,204 24.88 1,610,702 26.24Operating eXpenses janitorial (5,904) (0.10) (5,952) (0.10) landscaping (19,560) (0.32) (19,703) (0.32) repairs & maintenance (25,224) (0.41) (25,407) (0.41) parking (7,812) (0.13) (7,865) (0.13) security (32,436) (0.53) (32,684) (0.53) utilities (53,592) (0.87) (53,993) (0.88) administrative (828) (0.01) (830) (0.01) insurance (56,148) (0.91) (56,574) (0.92) real estate taxes (190,176) (3.10) (191,102) (3.11) management Fee (n/r) (38,184) (0.62) (40,268) (0.66)tOtal Operating eXpenses (429,864) [2] (7.00) (434,378) (7.08)net Operating incOme $1,097,340 $17.88 $1,176,324 $19.17capitalization rate 6.38% 6.84%purchase price as OF april 1, 2015 u $17,200,000 $280.25 $17,200,000 $280.25in-place Occupancy (at start of analysis with no vacant lease-up) 80.84% 80.84%average Occupancy (includes vacant lease-up and rollover) - 90.70%

[1] in-place net Operating income is calculated using contractual rents and expense reimbursements as of april 2015, annualized (with no greater vacancy loss). in-place nOi does not include vacant lease-up revenue, downtime due to near-term expirations, or future rent increases for existing tenants.[2] real estate taxes are reassessed based on the sales price.

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rent rOllsuite tenant

namesquare

Feet% of

propertylease term rental rates recovery

typemarket

assumption /market rent

comments/OptionsBegin end Begin monthly psF annually psF

530-a goodwill 10,086 16.43% jan-1990 Dec-2018 current $14,879 $1.48 $178,543 $17.70 nnn (+10% admin) market $1.50 nnn ($10 ti)

tenant has two (2) 5-year options to renew with 6-months notice. annual cpi rent increases, with a minimum of 3.0%.

jan-2016 $15,322 $1.52 $183,868 $18.23

jan-2017 $15,785 $1.57 $189,415 $18.78jan-2018 $16,255 $1.61 $195,063 $19.34

540 changes hair salon

2,496 4.07% Oct-1996 nov-2015 current $4,096 $1.97 $58,866 $23.58 nnn (+10% admin) market $1.75 nnn ($10 ti)

tenant has two (2) 1-year options to renew with 6 months notice.

540-a Frazee 4,952 8.07% may-2002 apr-2018

option

currentmay-2015may-2018

$8,418$9,161

$10,003

$1.70$1.85$2.02

$101,021$109,934$120,036

$20.40$22.20$24.24

nnn (5% cap Frazee) market $2.00 nnn ($20 ti)

tenant has one, 3-year option to renew.

590 yolanda’s mexican

cafe

6,632 10.81% sept-2006 aug-2016 current $15,254 $2.30 $183,043 $27.60 nnn (+10% admin) market $2.00 nnn ($20 ti)

tenant has two (2) 5-year options to renew at fixed rates of $2.65/sf/mo and $3.05/sf/mo.

660 nexcycle 100 0.16% mar-2013 mar-2016 current $250 $2.50 $3,000 $30.00 none market $1.75 nnn ($10 ti)

tenant expired 2/15 and is assumed to remain in place for 12 months close of escrow. pad site.

660 vons/safeway

46,000 74.95% apr-2015 mar-2035 current $0 $0 $0 $0 none market $0 nnn assumed start and end date. pad site.

660-a pep Boys 14,950 24.36% apr-2015 mar-2035 current $0 $0 $0 $0 none market $0 nnn assumed start and end date. pad site.

660-B salon centric

3,000 4.89% Feb-2011 jan-2016 current $5,033 $1.68 $60,400 $20.13 nnn (+10% admin) market $1.50 ($10 ti) tenant has two (2) 5-year options to renew.

660-B1 vacant 4,000 6.52% jul-2015 jun-2020 jul-2015jul-2016jul-2017jul-2018jul-2019

$5,000$5,100$5,203$5,307$5,413

$1.25$1.28$1.30$1.33$1.35

$60,000$61,200$62,440$63,680$64,960

$15.00$15.30$15.61$15.92$16.24

nnn (+10% admin) market $1.25 nnn $15 ti)

660-B2 vacant 5,057 8.24% jul-2015 jun-2020 jul-2015jul-2016jul-2017jul-2018jul-2019

$6,321$6,448$6,578$6,709$6,844

$1.25$1.28$1.30$1.33$1.35

$75,855$77,372$78,940$80,507$82,126

$15.00$15.30$15.61$15.92$16.24

nnn (+10% admin) market $1.25 nnn ($15 ti)

660-c sinaloa cleaners

1,200 1.96% Dec-1995 nov-2020 currentDec-2016Dec-2017Dec-2018Dec-2019

$3,139$3,265$3,395$3,531$3,672

$2.62$2.72$2.83$2.94$3.06

$37,670$39,180$40,740$42,372$44,064

$31.39$32.65$33.95$35.31$36.72


660-D h&r Block 1,200 1.96% Oct-2002 apr-2020 currentmay-2015may-2016may-2017may-2018may-2019

$2,548$2,700$2,754$2,809$2,865$2,923

$2.12$2.25$2.30$2.34$2.39$2.44

$30,570$32,400$33,048$33,708$34,380$35,076

$25.48$27.00$27.54$28.09$28.65$29.23

nnn (+10% admin) market $2.25 ($10 ti)

660-e Fantastic sam’s

1,200 1.96% nov-2002 Oct-2015 current $2,292 $1.91 $27,504 $22.92 nnn (+10% admin) market $2.25 nnn ($10 ti)

660-F nguyen nail spa

1,200 1.96% Oct-2003 sep-2018 currentOct-2015Oct-2016Oct-2017

$2,903$2,990$3,079$3,172

$2.42$2.49$2.57$2.64

$34,831$35,880$36,948$38,064

$29.03$29.90$30.79$31.72


660-g cigarette store

1,200 1.96% mar-2002 Feb-2017 currentmar-2016

$3,139$3,265

$2.62$2.72

$37,668$39,180

$31.39$32.65


tenant has one (1) 5-year option to renew.

660-h simi valley photo

1,200 1.96% jan-2000 mar-2016exp 3/15

current $3,168 $2.64 $38,016 $31.68 nnn (+10% admin) market $2.25 nnn ($10 ti)

tenant expires 3/15 and is assumed to stay in place for 12 months following close of escrow. it is assumed tenant will renew at market assumptions.

660-i/j palapa mexican

Food

2,400 3.91% sept-2001 jun-2019 currentjul-2015jul-2016jul-2017jul-2018

$5,474$5,638$5,808$5,982$6,162

$2.28$2.35$2.42$2.49$2.57

$65,691$67,656$69,696$71,784$73,944

$27.37$28.19$29.04$29.91$30.81


660-K subway 1,200 1.96% jun-2001 may-2016 currentjun-2015

$2,924$3,041

$2.44$2.53

$35,083$36,492

$29.24$30.41


660-i chase 5,950 9.69% Feb-2000 jan-2016 current $10,700 $1.80 $128,400 $21.58 nnn (+10% admin) market $2.00 nnn ($20 ti)

tenant has one (1) 5-year option to renew at Fmr with 7% increase in month 31.

690-a Dr. john ryu 1,200 1.96% apr-2013 Dec-2018 currentjan-2016jan-2017jan-2018

$2,160$2,170$2,180$2,190

$1.80$1.81$1.82$1.83

$25,920$26,040$26,160$26,280

$21.60$21.70$21.80$21.90


tenant has one (1) 5-year option to renew.

690-B hikari sushi Bar

1,800 2.93% Oct-2009 sep-2017 currentOct-2015Oct-2016

$3,991$4,151$4,317

$2.22$2.31$2.40

$47,893$49,806$51,804

$26.61$27.67$28.78


690-c Quanfu luo 1,200 1.96% nov-2013 Oct-2016 currentnov-2015

$1,236$1,284

$1.03$1.07

$14,832$15,408

$12.36$12.84


16

suite tenant name square Feet

% ofproperty

lease term rental rates recoverytype

market assumption /market rent

comments/OptionsBegin end Begin monthly psF annually psF

690-D vacant 1,600 2.61% jan-2016 Dec-2020 jan-2016jan-2017jan-2018jan-2019jan-2020

$2,546$2,597$2,649$2,703$2,756

$1.59$1.62$1.66$1.69$1.72

$30,557$31,168$31,792$32,432$33,072

$19.10$19.48$19.87$20.27$20.67


690-e vacant 1,100 1.79% Oct-2015 sep-2020 Oct-2015Oct-2016Oct-2017Oct-2018Oct-2019

$1,650$1,683$1,717$1,751$1,786

$1.50$1.53$1.56$1.59$1.62

$19,800$20,196$20,603$21,010$21,428

$18.00$18.36$18.73$19.10$19.48


690-F Fresh’n clean laundry

1,500 2.44% Oct-2014 sept-2024 currentOct-2015Oct-2016Oct-2017Oct-2018Oct-2019Oct-2020Oct-2021Oct-2022Oct-2023

$2,250$2,318$2,388$2,459$2,533$2,609$2,686$2,768$2,850$2,936

$1.50$1.55$1.59$1.64$1.69$1.74$1.79$1.85$1.90$1.96

$27,000$27,810$28,650$29,505$30,390$31,305$32,235$33,210$34,200$35,235

$18.00$18.54$19.10$19.67$20.26$20.87$21.49$22.14$22.80$23.49


OCCUPIED 49,616 80.8% $94,663 $1.91 $1,135,952 $22.89

VACANT 11,757 19.2% $15,518 $1.32 $186,216 $15.84

TOTAL POTENTIAL 61,373 100% $110,180 $1.80 $1,322,168 $21.54

rent rOll (cOnt.)

Demographic AnalysisDemOgraphics 1 mile 3 mile 5 mile

2014 estimated population 14,697 73,193 125,486

2019 projected population 15,352 76,088 130,686

2010 census population 14,237 71,198 121,782

2000 census population 13,011 64,471 110,837

growth 2010-2014 3.23% 2.80% 3.04%

growth 2014-2019 4.46% 3.96% 4.14%

2014 estimated median age 35.50 37.95 38.65

2014 estimated average age 36.30 37.84 38.10

2014 estimated households 4,615 23,915 40,955

2019 projected households 4,856 24,940 42,730

2010 census households 4,433 23,219 39,770

2000 census households 4,140 20,891 35,676

growth 2010-2014 4.11% 3.00% 2.98%

growth 2013-2019 5.20% 4.29% 4.33%

2014 est. average household size 3.04 3.06 3.05

2014 est. median household income $75,323 $89,111 $92,393

2019 prj. median household income $82,997 $96,336 $99,587

2000 cen. median household income $57,066 $71,693 $74,613

2014 est. average household income $93,552 $108,272 $113,156

2014 estimated per capita income $29,380 $35,377 $36,931

2014 estimated housing units 4,782 24,682 42,190

2014 estimated Occupied units 4,615 23,915 40,955

2014 estimated vacant units 167 768 1,234

2014 est. Owner Occupied units 2,799 17,574 31,159

2014 est. renter Occupied units 1,817 6,340 9,796

2014 est. median housing value $380,312 $426,606 $443,053

2014 est. average housing value $434,237 $490,193 $507,648

2014 est. population by race

- white population 9,351 (63.6%) 52,425 (71.6%) 92,457 (73.7%)

- Black population 228 (1.6%) 1,180 (1.6%) 2,013 (1.6%)

- asian population 1,581 (10.8%) 6,528 (8.9%) 11,638 (9.3%)

- pacific islander population 25 (0.2%) 113 (0.2%) 159 (0.1%)

- american indian and alaska native 121 (0.8%) 488 (0.7%) 750 (0.6%)

- Other race population 2,602 (17.7%) 8,757 (12.0%) 12,392 (9.9%)

- two or more races population 789 (5.4%) 3,702 (5.1%) 6,076 (4.8%)

- hispanic population 5,241 (35.7%) 20,131 (27.5%) 31,316 (25.0%)

- white non-hispanic population 7,170 (48.8%) 42,807 58.5% 76,342 (60.8%)

TRAFFIC COUNTS

Location OverviewSIMI VALLEysimi valley, with an estimated population of over 126,400 people, is the third largest of ventura county’s ten cities. Occupying an area of approximately 42 square miles, it is located in the southeast ventura county, about 37 miles northwest of downtown los angeles. the city was incorporated in 1969 and has 34 parks, 4 golf courses, and a performing arts center. simi valley is also home to the world-famous ronald reagan presidential library.

there are many advantages to conducting business in simi valley including attractive facility cost, a productive labor force, and a friendly atmosphere. in addition, the simi valley city council recently adopted an economic strategic plan to enhance and further support local businesses. a key component of the plan included the development of a comprehensive economic Development program, which incorporated both plan goals and existing city programs that serve the business community. please see the city’s website (www.simivalley.org) for additional information.

presenteD By: affiliated Business DisclosurecBre, inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “affiliate”), engaging in a broad range of commercial 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 trammel 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 offeror or prospective offeror, 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.

confidentiality agreementthis is a confidential memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition 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 variation. all references to acreages, square footages, and other measurements are approximations. additional information and an opportunity to inspect the property 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 descriptions of the full agreements referenced. interested parties are expected to review all such summaries and other documents of whatever nature independently 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 terminate discussions with any entity at any time with or without notice which may arise as a result of review of 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 contents 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 contents 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.

Disclaimer©2013 cBre, inc. the information contained in this document has been obtained from sources believed reliable. while cBre, inc. does not doubt its accuracy, cBre, inc. has not verified it and makes no guarantee, warranty, or representation about it. it is your responsibility to independently confirm its accuracy and completeness. any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. the value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. 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. cBre and the cBre logo are service marks of cBre inc. and/or its affiliated or related companies in the united states and other countries. all other marks displayed on this document are the property of their respective owners. 2/13 pmc0004481

aleX KOZaKOv First vice president+1 213 613 3031lic. [email protected]

patricK waDeFirst vice president+1 213 613 3071lic. [email protected]

heather garrett client services specialist+1 213 613 3367lic. [email protected]

maXX cOhenassociate+1 213 613 3117lic. [email protected]

anDrew tashjian +1 213 613 3024lic. [email protected]

larry tanjivice president+1 805 465 1677lic. [email protected]

scOtt siegelsenior associate+1 805 465 1633lic. [email protected]

lOcal marKet eXperts:

Woodlands Plazaf.tlcollect.com/fr2/215/45262/Woodlands_Plaza_OM.pdf · 2015-02-03 · 1 530 - 660...

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