Capital Markets | Investment Properties | Offering Memorandum
Trophy Investment - Corporate Guarantee
Nike Net-Lease iNvestMeNt | Los aNgeLes4571 - 4591 Whittier Blvd | los Angeles, CA
CALL FOR OFFERS DUE: MAY 6, 2016
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exCLusiveLy Listed by:
© 2016 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. Nike Store- East LA OM.indd
alex kozakov First Vice President +1 213 613 3031Lic. [email protected]
Patrick Wade First Vice President +1 213 613 3071Lic. [email protected]
eric RoyAssociate+1 213 613 3410Lic. [email protected]
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Nike – 4571-4591 Whittier Blvd
TAbLE OF COnTEnTS
Investment Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lease Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tenant Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Area Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual Property - Grand Opening
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doWNtoWN Los aNgeLes
deMogRaPhiCs: 2016 estiMated PoPuLatioN
One Mile Radius 49,213
thRee-Mile Radius 287,553
five-Mile Radius 820,699
Whittier Boulevard 27,751 VPD
S McDonne
ll Ave
710 HWY
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Nike – 4571-4591 Whittier Blvd
addRess 4571-4591 Whittier Blvd., los Angeles, CA
tenant nike retail services, inc.
GuaRantOR nike, inc.
OffeRinG PRice open Bid - request for offer
cuRRent annual Rent $562,600
lease tyPe nnn†
cOMMenceMent 10/13/2014
exPiRatiOn 10/1/2025
ReMaininG teRM 9.50 Years
BuildinG size (sf) 19,400 sF
land aRea (sf) 53, 595 sF
yeaR Built 2015
aPn 5247-016-016; 017; 018; 019; 033
PaRkinG 74 dedicated Parking spaces
tRaffic cOunts 27,751 (Whittier Blvd)
Investment Summary
investment OVERVIEw
Property Strengths• Rare opportunity to buy single-tenant investment property with
corporate guarantee from Nike, inc. – Fortune 50 Company (s&P: aa-)
• brand new construction with sleek, contemporary architectural design
• New Nike Community store concept: retail store with community benefits and services
• 10 year NNN† lease: limited landlord responsibility
• strong rental increases throughout primary term and option periods - Over 10% every 5 years
• Extremely dense, infill location with high population density: almost 50,000 people in 1-mile radius
• Signalized corner location with large dedicated private parking
• Located on Whittier Boulevard: East Los Angeles’s main retail corridor with heavy foot and vehicular traffic
• Excellent Parking - 74 dedicated parking spaces
†see lease abstract for minimal ll responsibilities
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Nike – 4571-4591 Whittier Blvd
leAse oveRvieW
addRess 4571-4591 Whittier Blvd., los Angeles, CA
tenant nike retail services, inc.
GuaRantOR: nike, inc. (s&P AA-)
lease tyPe: nnn
cOMMenceMent date: october 13, 2014
exPiRatiOn date: october 1, 2025
lease teRM ReMaininG: 9.50 Years
Renewal OPtiOns: 2 x Five Year options
cuRRent Rent: $562,600/Year
tenant ResPOnsiBilities: hvAC, CAm, Parking, Property taxes, Utilities, insurance
landlORd ResPOnsiBilities: roof & structure
ROfR: tenant does not have a roFr
yeaRs MOnthly Rent annual Rent
yeaRs 1-5 $46,883.33 per month $562,600 per year
yeaRs 6-10 $51,733.33 per month $620,800 per year
OPtiOn 1 $57,858.00 per month $694,296 per year
OPtiOn 2 $63,729.00 per month $764,748 per year
sale PRice caP Rate $/BuildinG sf
$14,065,000 4.00% $725.00
$13,235,000 4.25% $682.35
$12,500,000 4.50% $644.44
Rent Schedule
Pricing Matrix
Lease Abstract
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Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories
and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US $24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. In 2014 the brand alone was valued at $19 billion, making it the most valuable brand among sports businesses.
The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike, the Greek goddess of victory. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, and subsidiaries including Brand Jordan, Hurley International and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008, and previously owned Cole Haan and Umbro. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high-profile athletes and sports teams around the world, with the highly recognized trademarks of “Just Do It” and the Swoosh logo.
Nike, iNC. QuiCk FaCts
Type: Public
Industry Apparel, Accessories
Founded 1964
Headquarters Washington County, Oregon
# of Employees 44,000
Revenue $25.3 Billion
Credit Rating S&P: AA-
tenAnt oveRvieW
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Nike – 4571-4591 Whittier Blvd
nike CoMMuNity stoRe - Los aNgeLes
Defined by an iconic entrance arch, Whittier Boulevard serves as the main thoroughfare — and de facto heart and soul — of East Los Angeles. The arch’s location is the apex of the vibrant community. Now, it also introduces the location of Nike Los Angeles, Nike’s latest Community Store, located at Whittier (on the Latino Walk of Fame) and S. McDonnell Avenue.
“Community stores are an important part of our retail strategy in North
america and build on a 20-year history and commitment to deepening our
community connections around the world,” says Christiana Shi, President, Direct-to-Consumer, NIKE, Inc., who joined the store opening.
The mission of the brand’s Community Stores is to build and empower a healthy local community through the unifying power of sport and to serve as a catalyst for positive change in each area a store is located. Additionally, Nike provides volunteer hours each month for Nike Community Ambassadors — store athletes who have completed training to deliver sports programming for kids – to give back within their community. Nike also rewards employee volunteer hours with money directed to the nonprofit of the employee’s choice.
Nike is committed to investing in the great organizations that serve the youth of East LA, including the Eastmont Community Center where the store team has been actively volunteering, helping to tutor local youth and staff the clothing store that supplements their fundraising efforts. Recently, Nike and the Mia Hamm Foundation provided a grant enabling 250 girls from East LA to participate in Soccer for Success, a yearlong soccer program housed at the Weingart YMCA. Nike will continue to expand local support and partner closely with the community to determine which investments will best serve youth across East LA.
As part of the Nike Community Store model, local store teams are empowered to award grants to organizations in their backyards via the Nike Community
Impact Fund, which is being expanded beyond the Portland area to include all areas where Nike has community stores.
All Community Stores aim to hire at least 80 percent of store employees from within a five-mile radius of the store. The East Los Angeles store has already exceeded this target.
the Los angeles location marks Nike’s sixth Community store since Nike first
established the concept in Portland, oregon. other locations include the ivy City
neighborhood of Washington, d.C., brooklyn’s Flatbush neighborhood, New
orleans’ Mid-City neighborhood and south Chicago.
Source: http://news.nike.com/news/nike-s-new-east-los-community-store-ignites-sport-and-local-engagement
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Local aerial
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Nike – 4571-4591 Whittier Blvd
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Regional aerial
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Nike – 4571-4591 Whittier Blvd
doWNtoWN Los aNgeLes
Whi
ttier
Bou
leva
rd
27
,751
VPD
S McDonnell Ave
710 HWY
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eAst Los aNgeLes
East Los Angeles (often shortened to East L.A.) is an unincorporated area and census-designated place (CDP) in Los Angeles County, California, United States. It is located immediately east of the Boyle Heights district of the City of Los Angeles, which is the eastern edge of the City in this area; hence the name “East L.A.”
East L.A. is notable for being the most populous CDP in California, as the area had a total population of 126,496, up from 124,283 at the 2000 census. The CDP area includes the separate community of City Terrace, which is also an unincorporated area. East L.A. is also the least ethnically diverse neighborhood or city in Los Angeles County as noted by the Los Angeles Times’ Mapping L.A. survey (97.1% Hispanic). The Latino Walk of Fame is similar to the one in Hollywood, but with a focus on Latino celebrities.
The Latino Walk of Fame was inaugurated on April 30, 1997 to honor outstanding leaders who have made historical and social contributions with a Sun Plaque on Whittier Boulevard: the heart of East L.A.. Spaces have been created for over 280 plaques. Permanent granite plaques have been put in place for the first 20 honorees. The merchants’ association of East Los Angeles sponsors a Comprehensive Clean-Up Campaign that cleans the sidewalks and gutters daily and removes litter and trash.
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Nike – 4571-4591 Whittier Blvd
Source: http://www.cityofwhittier.org/civicax/filebank/blobdload.aspx?blobid=4107
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Nike – 4571-4591 Whittier Blvd
demogrAPhiCsOne-Mile Radius thRee-Mile Radius five-Mile Radius
POPu
lati
On
2015 estiMated POPulatiOn 49,213 287,553 820,699
2020 PROjected POPulatiOn 50,404 294,719 846,936
2010 census POPulatiOn 48,441 282,797 799,569
2000 census POPulatiOn 48,573 286,681 803,087
GROwth 2010-2015 1.59% 1.68% 2.64%
GROwth 2015-2020 2.42% 2.49% 3.20%
2015 estiMated Median aGe 29.85 31.58 33.32
2015 estiMated aveRaGe aGe 32.51 34.10 35.34
hO
us
ehO
lds
2015 estiMated hOusehOlds 11,807 74,719 222,759
2020 PROjected hOusehOlds 12,107 76,811 231,363
2010 census hOusehOlds 11,600 73,134 215,013
2000 census hOusehOlds 11,487 72,712 206,823
GROwth 2010-2015 1.79% 2.17% 3.60%
GROwth 2015-2020 2.54% 2.80% 3.86%
2015 est. aveRaGe hOusehOld size 4.15 3.83 3.58
inc
. 2015 est. aveRaGe hOusehOld incOMe $44,988 $51,589 $52,682
2015 estiMated PeR caPita incOMe $46,167 $53,529 $54,522
Ra
ce
& O
RiG
in
h isPanic POPulatiOn 97.72% 90.36% 78.80%
Black POPulatiOn 0.60% 0.88% 2.63%
asian POPulatiOn 0.41% 6.48% 13.95%
Pacific islandeR POPulatiOn 0.07% 0.07% 0.08%
aMeRican indian and alaska native 1.15% 1.11% 1.07%
twO OR MORe Races POPulatiOn 2.85% 3.55% 3.57%
nOt hisPanic/latinO, white 1.35% 2.22% 4.33%
Capital Markets | Investment Properties
CBRE © 2016 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 agreement 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.
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 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.
alex kozakov First Vice President +1 213 613 3031Lic. [email protected]
Patrick Wade First Vice President +1 213 613 3071Lic. [email protected]
eric RoyAssociate +1 213 613 3410Lic. [email protected]
exCLusiveLy Listed by:
