16
NNN 99 CENTS ONLY STORE 1481 NORTH LA CADENA DRIVE | COLTON, CA 92324 Capital Markets | Investment Properties | Offering Memorandum
NNN 99 CENTS ONLY STORE1481 NORTH LA CADENA DRIVE | COLTON, CA 92324
Capital Markets | Investment Properties | Offering Memorandum
2
EXCLUSIVELY LISTED BY:
Alex Kozakov First Vice President +1 213 613 3031Lic. [email protected]
Patrick Wade First Vice President +1 213 613 3071Lic. [email protected]
Lucy GanAssociate+1 213 613 3566Lic. 01979053 [email protected]
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.
3
99 Cents Only – 1481 N. La Cadena Dr
TABLE OF CONTENTS
Investment Summary . . . . . . . . . . . . . . . . . . . . .
Lease Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rent Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tenant Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Area Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
N Mt Vernon AveE G
rant A
ve
N La C
adena Drive
E Grant
Ave
27,709 VPD @ Intersection
San Bernardino Valley College
14,000+ Faculty and Students
5
99 Cents Only – 1481 N. La Cadena Dr
ADDRESS 1481 N La Cadena Drive | Colton, CA
OFFERING PRICE $2,647,826
CURRENT NOI $152,250
CURRENT CAP RATE 5.75%
BUILDING SIZE (SF) 21,413 SF
LAND AREA (SF) 60,113 SF
YEAR BUILT / RENOVATED 1956/2012
OWNERSHIP Fee Simple
LEASE TYPE NNN
COMMENCEMENT 2/2/2012
EXPIRATION 1/31/2025
INCREASES 5% at Year 8/10% at Option Years
REMAINING TERM Appoximately 9 Years
OPTIONS Four x 5-years
Investment Summary
INVESTMENT OVERVIEW
Property Highlights• Absolute NNN lease: zero landlord responsibility• Almost 9 years left on the primary lease term with scheduled rent
increases
• Located at signalized intersection of 3 streets: 27,709 vehicles/day• 99 Cents Only corporate guarantee: over 380 stores across
California, Texas, Arizona, and Nevada
• Located directly across street from San Bernardino Valley College: almost 14,000 students, faculty, and staff
• Underserved trade area with dense population: almost 130,000 people in 3-mile radius
• Less than 1 mile from 215 Freeway• Replaceable rents: Only $0.59 per square foot per month• Priced below replacement cost only: $115.25 per square foot• Ownership includes improvements: depreciable asset
6
7
99 Cents Only – 1481 N. La Cadena Dr
LEASE OVERVIEW
TENANT 99 Cents Only
ADDRESS 1481 N La Cadena Drive, Colton, CA
BUILDING SF 21,413
LAND SF 60,113
LEASE TYPE NNN
LEASE TERM 12 years & 11 Months
EARLY TERMINATION None
RENT COMMENCEMENT 2/2/2012
LEASE EXPIRATION: 1/31/2025
OPTIONS Four x 5 Year Options
CURRENT RENT $152,250
RENT/SF/MONTH $0.59
TENANT RESPONSIBILITIES Property taxes, Utilities, Insurance
LANDLORD RESPONSIBILITIES None
LEASE YEARS ANNUAL RENT INCREASES
YEAR 1 - 2 $145,000 per year -
YEAR 3 - 7 $152,250 per year 5.0%
YEAR 8 - 12 $159,863 per year 5.0%
OPTION 1 (5 YEARS) $175,849 per year 10.0%
OPTION 2 (5 YEARS) $193,434 per year 10.0%
OPTION 3 (5 YEARS) $ 212,777 per year 10.0%
OPTION 4 (5 YEARS) $234,055 per year 10.0%
Rent Schedule
8
1481NorthLa Cadena Dr
1481NorthLa Cadena Dr
1481North1481Northa Cadena Dra Cadena Dr
SSSSSSSSSSaaaaaaaaaaannnnnnnn BBBBBBBBBeeeeeeeeeeeeeerrrrrrrrrrrrrrrrnnnnnnnnnnnnnaaaaaaaaaaaarrrrrrrrrrrrrddddddddddddiiiiiiiiiinnnnnnnnnnnnnoooooooooooSSSSSSSSSSSSaaaaaaaaaaannnnnnnnnnn BBBBBBBBBBBBeeeeeeeeeeeeeerrrrrrrrrrrrrrnnnnnnnnnnnnnaaaaaaaaaaaaaarrrrrrrrrrrrddddddddiiiiiiiiinnnnnnnnnnnnoooooooooooVVVVVVVVVVVVVaaaaaaaaaaaaaaaaalllllllllllllllllllllllllleeeeeeeeeeeyyyyyyyyyyyyyyyy CCCCCCCCCCCCCCoooooollllllllllllllllllllleeeeeeeeeeeeggggggggggggggggeeeeeeeeeeeeVVVVVVVVVVVVVaaaaaaaaaaaaaaaaaaaaaaalllllllllllllllllllllllleeeeeeeeeeyyyyyyyyyyyyyyy CCCCCCCCCCCCCooooollllllllllllllllllllleeeeeeeeggggggggggggggggeeeeeeeeeee
PPPPPPPPrrrrrrrooooooooo---SSSSSSwwwwwwwwaaaaaaaappppppPPPPPPPPrrrrrroooooooo--SSSSSSwwwwwwwwaaaaaaaapppppppppp----MMMMMMMeeeeeeeeeeeeeeeeettttttpppp----MMMMMMMeeeeeeeeeeeeeeeetttttt
MMMMMMMMMMMMMMMMMMMMiiiiiiddddddddddddddddllleeeee CCCCCCCCoooolllllllllllleeeeeeeeeeeeeeegggggggggggggggeeeeeeeeeMMMMMMMMMMMMMMMMMMMMiiiiiiddddddddddddddddllleeee CCCCCCCCoooolllllllleeeeeeeeeeeeeeeggggggggggggggggeeeeeeeeeHHHHHHHHHHHHHiiiiiiiiiiiiigggggggggghhhhhhhhhhh SSSSSSSSSSScccccccchhhhhhhhhhhhhooooooooooooooooooooooolllllllllllllllHHHHHHHHHHHHHiiiiiiiiiiigggggggggghhhhhhhhhh SSSSSSSSSSScccccccchhhhhhhhhhhhooooooooooooooooooooollllllllllllll
Grant AveGrant AveCitrus StCitrus St
Vete
rans
Way
Vete
rans
Way
La C
aden
a Dr
La C
aden
a Dr
6,73
3 AD
T
6,73
3 AD
T
5,845 ADT5,845 ADT
320556320556
15,1
31 A
DT
15,1
31 A
DT
Mt
Vern
on
Ave
Mt
Vern
on
Ave
Johnston StJohnston St
Mt
Vern
on
Ave
Mt
Vern
on
Ave
Holly
Ave
Holly
Ave
Fair
view
Ave
Fair
view
Ave
Bord
well A
veB
ord
well A
veB
ord
well A
veB
ord
well A
ve
10th
St
10th
St
Ria
lto A
veR
ialt
o A
ve
Jan
tzen
Dr
Jan
tzen
Dr
Riv
ers
ide A
veR
ivers
ide A
ve
Vir
gin
ia A
veV
irg
inia
Ave
Esperanza StEsperanza St
College DrCollege Dr
K S
tK
St
Ca
na
l R
dC
an
al R
dLocal Aerial
9
99 Cents Only – 1481 N. La Cadena Dr
1481NorthLa Cadena Dr
1481NorthLa Cadena Dr
1481North1481NorthLa Cadena DrLa Cadena Dr
Mill StMill St
Mill StMill St
K S
tK
St
J St
J St I St
I St
SSaSaSaSaSaSaSaSaSSaSS nnnnnn BeBeBBBeBeBeBeBBeBeBernrnrrnrnrrrnrrnnnnrrr aaraarararrrra didiididididddd nnonononononononoooSSaSaSaSaSaSaSaSaSS nnnn BeBeBBBeBeBeBeBBBeBernrnrrrrrrnrnnaaraarararrrra dididdididddd nnonnonononononooVaVaVaVaVaVaVaVaVaVaVaVaaallllllllllllllllllll eyeeyeyeyeyeyeyeyyeyyeye CCCCCCCCCCCCCColooooollolooo leeeegeggeggegggegeggggVaVaVaVaVaVaVaVaVaVaallllllllllllllllllll eyeeyeyeeyeyyyeyyey CCCCCCCCCColooooollolooo leeeegeggeggegggegeggg
PrPrPrPrro-oo-o-oo-ooooo SSwSwSwSwSwwSwSwapaapapapapa -M-M-M-MMMMeeeeeeeeeeeeeeeeeeeeeeeeeetttttttttPPrPrPro-o-ooo-o SwSwSwwSwwSwwapaapapapaa -M-M-M-MMMMeeeeeeeeeeeeeeeeeeeeeeeettttttt
eeeeeeee CCCCCCCCollolollloloollleleleleeeleeleeeggegegegegeggeggegegeeeeeeee CCCCCCCollololllloollleleleleeeleeleeeeeggegegegegeggggeggMMiMiMiMiMiMiMMiMMiMiMiMM dddddddddddddddddddddddddleleleleleeeleMMiMiMMiMiMiMMiMMiMMMM dddddddddddddddddddddddleleleleleeelehhhhhh SSSSSSScchchchhchhhhhooooooooooooooooooooo llllllllllllhhhhhh SSSSSSchchchhchhhhooooooooooooooooooolllllllllllHiHiHiHiHiHiHiHiHiHiH ghghghghghhghghggghghgghghgHiHiHiHiHiHiHiHiHiHiH ghghghgghhghgggghghgghgh
RRiRiRiRiRRiR chchcchchhhchhhhhchhhhhharararrrarararararrardsdsdsssdsdsdsdssssdsonoonoononononoonnononn PPPPPrerererererererrerereeeeppppppppppRRiRiRiRiRRiRRR chchcchchhhchhhhhhhharararrarararararardsdsdsssddsdssdsononononnonoonnononn PPPPrererrererererrerereeeppppppppppHiHiHiHiHiiHiHHHi MMMMMMMMMMMMMMMMMidididididididdddiddddddldldldldlddddddddlleeeee ScccchohohohohohohohohoohohoooloooloooloooooooooHiHiHiHiHiiHiHHi MMMMMMMMMMMMMMMididididiididddiddddddldldldldlddddddddlleeeee Sccchohohohohohohohohohohoooloooloooloooooo
UrUrUrUrUrUrUrUUUUrUrUrU bibibbibibibibibbbbb tatatatatatatataataUUrrUrrUrUUUUrUrUrU bibiiibibb tattattatatataataElElElElEElElElEEEElElElE emeememememememmemmmee ennnnneenenentatataaaaat ryryryrryryyyryrryyyyElElElElEElElElEEEElElElE emeememememememmmmmee ennnnneennntatataaaaaaaryryryryryyyyry
ScScSScScSSSchohohohooohoololollolScScSScSSSchhhohooohoh ololollol
AbAbAbbAbAbAAbbbAbbAAA rrarararahahhhahaaahaahahhahhaaaaammmmmmmmmmAbAbAbbAbAbAbAbAbAAbAbAbAbbAbbA rrararararrr hahhhahaaahaaahhahhaaaaammmmmmmmmLiLiLiLiLiLiLiLinncnncncolololoolnnnnnnLiLiLiLiLiLLinnnncncoloololnnnnn
EEElEElElElE emememememmmenee tatataaryryryyryyryryyEEElEElElElE emememememmmenee taaaaryryyyryyyry
Grant AveGrant Ave
Laurel StLaurel St
Olive StOlive St
Hanna StHanna St
Olive StOlive St
La C
aden
a Dr
La C
aden
a Dr
6,73
3 AD
T
6,73
3 AD
T
5,845 ADT5,845 ADT
15,1
31 A
DT
15,1
31 A
DT
Mt
Vern
on
Ave
Mt
Vern
on
Ave
Mt
Vern
on
Ave
Mt
Vern
on
Ave
Bord
well A
veB
ord
well A
ve
Pen
nsy
lva
nia
Ave
Pen
nsy
lva
nia
Ave
Laurel StLaurel St
Citrus StCitrus St
Johnston StJohnston St
Olive StOlive St
Colto
n Av
e
Colto
n Av
e
215INTERSTATE
149,5
83 A
DT
149,5
83 A
DT
320556320556
Regional Aerial
10
11
99 Cents Only – 1481 N. La Cadena Dr
99 Cents Only Stores is a discount retailer chain based in Commerce, California. Founded by David Gold in February 28, 1969, most of the stores are located in Southern California, with others in Nevada, Arizona, and Texas. The company also operates Bargain Wholesale, which sells wholesale to
retailers across the United States and exports to more than 15 countries from showrooms in Los Angeles and Houston.
From the first store opening in 1982, 99 Cents Only Stores has expanded to more than 380 extreme value retail stores in California, Texas, Arizona, and Nevada.
2012 marked a turning point for the Company when it celebrated its 30th anniversary and decided to go private by partnering with Ares Management and the Canadian Pension Plan Investment Board. This partnership has been instrumental in the company’s continued expansion, both in the number of new stores and new markets. The new management team had hired the industry veterans from Krogers and Sam’s Club to further refine the company’s operation and expansion plan.
99 CENTS ONLY QUICK FACTS
Type: Private
Industry Discount, variety store
Founded 1969
Founder Dave Gold
Headquarters Commerce, California, USA
Number of Locations 389
Website www.99only.com
TENANT OVERVIEW
12
Colton
Colton is a city in San Bernardino County, California, United States. The city is located in the Inland Empire region of the state and is approximately 57 miles east of Los Angeles. The population of Colton is 52,154 according to the 2010 census, up from 47,662 at the 2000 census.
Colton was until recently the site of Colton Crossing, one of the busiest at-grade railroad crossings in the United States. The crossing was installed in 1882 by the California Southern Railroad to cross the Southern Pacific Railroad tracks while building northward from San Diego. As a result of railroad acquisitions and mergers, this became the point at which the Burlington Northern Santa Fe’s “Southern Transcontinental Route” crossed the Union Pacific’s “Sunset Route”. As traffic on each line began to soar in the mid-1990s, fueled largely by the vast increase in imports passing through the ports of Los Angeles and Long Beach, the primitive crossing became a serious bottleneck. On August 28, 2013, the at-grade crossing was officially replaced by a fly-over that raises the east–west UP tracks over the north–south BNSF tracks.
Colton was created in its modern form when the Southern Pacific Railway was built heading east from Los Angeles in 1875.
AREA OVERVIEW
13
99 Cents Only – 1481 N. La Cadena Dr
San Bernardino County
San Bernardino County, California, officially the County of San Bernardino, is a county located in the southern portion of the U.S. state of California. As of the 2010 census, the population was 2,035,210, making it the fifth-most populous county in California, and the 12th-most populous in the United States.
San Bernardino County is included in the Riverside-San Bernardino-Ontario, CA Metropolitan Statistical Area, also known as the Inland Empire. With an area of 20,105 square miles, San Bernardino County is the largest county in the United States by area (excluding boroughs in Alaska). It is larger than each of the nine smallest states, larger than the four smallest states combined, and larger than 71 different sovereign nations.
Abundant inexpensive land and the accessibility from freeway I10, I215 and SR210 makes the area an ideal logistic hub. Several large warehouses have been developed for companies like Kohl’s, Mattel, Pep Boys, and Stater Brothers’ market. The city is also the home to one of California State University’s campuses. Amazon.com has built a new 950,000-square-foot (22-acre) fulfillment warehouse on the south side of the San Bernardino airport, which opened in 2012.
TOP EMPLOYERS IN THE COUNTY OF SAN BERNARDINO
Arrowhead Regional Medical Center Colton 18000
Stater Bros. Markets San Bernardino 18000
County of San Bernardino San Bernardino 17395
National Training Center Fort Irwin 13805
U.S. Marine Corps Air Twentynine Palms 12486
Abbott Vascular Temecula 12000
March Air Reserve Base Moreno Valley 8750
San Bernardino City Unified School District San Bernardino 8574
Ontario International Airport Ontario 7510
14
27,709 VPD @ Intersection
Grant Ave 5,845 VPD
Mt V
ermo
n Av
e 15
,131
VPD
La Cadena Dr 6,733 VPD
15
99 Cents Only – 1481 N. La Cadena Dr
DEMOGRAPHICS
ONE-MILE RADIUS THREE-MILE RADIUS FIVE-MILE RADIUS
POPU
LATI
ON
2015 ESTIMATED POPULATION 18,983 127,597 326,636
2020 PROJECTED POPULATION 19,337 130,668 334,393
2010 CENSUS POPULATION 18,809 125,617 321,724
2000 CENSUS POPULATION 17,062 110,305 291,628
GROWTH 2010-2015 0.93% 1.58% 1.53%
GROWTH 2015-2020 1.86% 2.41% 2.37%
2015 ESTIMATED MEDIAN AGE 28.72 29.07 29.77
2015 ESTIMATED AVERAGE AGE 31.99 32.05 32.82
HO
US
EHO
LDS
2015 ESTIMATED HOUSEHOLDS 4,765 33,702 89,060
2020 PROJECTED HOUSEHOLDS 4,841 34,433 91,091
2010 CENSUS HOUSEHOLDS 4,740 33,388 87,979
2000 CENSUS HOUSEHOLDS 4,652 31,426 85,099
GROWTH 2010-2015 0.52% 0.94% 1.23%
GROWTH 2015-2020 1.61% 2.17% 2.28%
2015 EST. AVERAGE HOUSEHOLD SIZE 3.93 3.70 3.60
INC
OM
E 2015 EST. AVERAGE HOUSEHOLD INCOME $43,370 $42,690 $48,112
2020 PRJ. AVERAGE HOUSEHOLD INCOME $43,464 $42,262 $47,592
2015 EST. MEDIAN HOUSEHOLD INCOME $35,143 $32,662 $36,216
RA
CE
& O
RIG
IN
WHITE POPULATION 50.38% 44.19% 44.21%
AFRICAN AMERICAN POPULATION 3.54% 10.40% 11.02%
ASIAN POPULATION 1.44% 3.25% 4.63%
PACIFIC ISLANDER 0.32% 0.46% 0.41%
AMERICAN INDIAN / ALASKA NATIVE 1.63% 1.43% 1.29%
OTHER RACE POPULATION 38.29% 35.55% 33.50%
TWO OR MORE RACES POPULATION 4.40% 4.71% 4.94%
16
Capital Markets | Investment Properties
Alex Kozakov First Vice President +1 213 613 3031
Patrick Wade First Vice President +1 213 613 3071
Lucy GanAssociate+1 213 613 3566
CBRE © 2013 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.
EXCLUSIVELY LISTED BY:
