KIDDER.COM
NNN LEASED INVESTMENT
OFFERING MEMORANDUM | 2401 WEST WHITTIER BOULEVARD | MONTEBELLO, CA 90640
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.
This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.
01INVESTMENT SUMMARY
02FINANCIAL OVERVIEW
03AREA OVERVIEW
KIDDER.COM
FOUY LY
[email protected] N° 01223864
EXCLUSIVELY LISTED BY
PETER BEAUCHAMP
[email protected] N° 01151023
TABLE OF CONTENTS
32401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS
01INVESTMENT
SUMMARYOFFERING SUMMARY
INVESTMENT HIGHLIGHTS
TENANT PROFILES
SITE PLAN
42401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS
Kidder Mathews is pleased to offer for sale the Pacific Premier Bank & Wingstop retail pad, a freestanding two-tenant NNN retail investment in the City of Montebello.
THE OFFERING
Positioned within the heart of the Los Angeles metro, this high-image asset is a newly constructed (2019) approximately 4,333 gross SF pad building situated on a high-profile 20,602 SF signalized corner land parcel. The Pacific Premier Bank & Wingstop retail pad opportunity offers the investor a stable income
OFFERING SUMMARY
stream with brand new long-term leases and market rate rental increases. Specifically, Pacific Premier Bank (Nasdaq: PPBI) has 7-year primary term lease (with renewal options) while Wingstop (Nasdaq: WING) has a 10-year term plus multiple renewal options.
The property is strategically positioned with significant frontage along Whittier Boulevard near Downtown Montebello, currently undergoing a major revitalization inclusive of new hotels, multi-family, condos and retail projects. Additionally, Whittier Blvd is one of the most heavily trafficked North/South corridors with daily counts in-excess of 62,000 cars per day
(Whittier Blvd and Garfield Ave).
Montebello is centrally located within Los Angeles county with an exceptionally dense residential and commercial infill population of over 210k having an Average HHI in-excess of $69k (3-miles). Situated just 7-miles from Downtown Los Angeles, the property’s location also benefits from convenient access to nearly all the area’s primary freeways including the I-5, 605, 710 and 60. Additionally, the site is surrounded by a synergistic mix of national retailers such as Costco, Target, Walgreens, Vons, LA Fitness and Rite Aid and is only minutes to the 700k SF Citadel Outlets shopping center.
PROPERTY OVERVIEW
Address 2401 West Whittier Boulevard Montebello, CA 90640
Property Type Class-A Retail
Leaseable SF ±4,148 SF
Land Area ±20,602 SF
Price $4,250,000
Actual NOI $197,484
Actual Cap Rate 4.65%
No of Tenants Two (2)
Year Built 2019 (Q-3 Completion)
Lease Type NNN-Leased
Parking 6:1,000 (surface)
Signage Building and Monument
52401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS
HIGH-IMAGE ASSET
Newly constructed in 2019, this high-quality Pride of Ownership property built to the highest standards with state-of-the-art bank branch build-out and most recent Wingstop design layout.
Exceptional bank location dating back to 1950s.
INVESTMENT GRADE TENANCY
Pacific Premier Bank (Nasdaq: PPBI) is an $11B regional bank with over 40 branches in multiple states. Recently ranked 3rd Best Performing Regional Bank by S&P Global Market Intelligence.
Wingstop (Nasdaq: WING) is the largest fast casual chicken wings-focused restaurant chain in the world with over 1,200 global locations. 2018 systemwide sales increased 16% to $1.3B (year-over-year) while net new locations increased by 119.
SECURE & STABLE CASH FLOW
Brand new long-term leases with no early termination clause provides investment security.
Pacific Premier Bank will have a corporate guaranteed 7-year initial term with renewal options while Wingstop will have a 10-year lease with renewal options guaranteed by Far West Restaurant Group, the largest Wingstop franchisee in California.
SIGNIFICANT TENANT INVESTMENT
Pacific Premier Bank tenant-paid interior bank branch buildout estimated at $634k ($235/SF).
Wingstop tenant-paid interior restaurant buildout estimated at $289k ($200/SF).
EXCEPTIONAL TRADE-AREA LOCATION
One of the most densely-populated infill submarkets within Los Angeles.
Superior visibility at signalized hard-corner of Whittier Boulevard & Concourse Avenue.
Daily traffic counts in excess of 40,000 VPD.
Established retail trade-area surrounded by national tenancy (Costco, Target, Vons, Rite Aid).
Direct access to various freeways; I-5, I-605, I-710 and SR-60. Population of 727k with Average HHI of nearly $70k (5-mile).
PASSIVE INVESTMENT
Fee simple ownership.
Triple Net (NNN) lease structure with minimal landlord responsibilities.
Two tenants on long-term leases minimizing management obligations.
Ideally suited for the 1031 Exchange investor.
Deliver free and clear of existing financing.
INVESTMENT HIGHLIGHTS
62401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS
OWNERSHIP NASDAQ: PPBI
YEARS IN BUSINESS
22 years
MARKET CAP
$1.8 Billion
REVENUE 2017 $194 Million
HEADQUARTERS Irvine, CA
CREDIT RATING BBB+
PACIFIC PREMIER Founded in 1983, Pacific Premier Bank® is a publicly-traded (Nasdaq: PPBI) state-chartered bank headquartered in Irvine, California, serving businesses and consumers throughout the United States. With approximately $11.5 billion in total assets, they are one of the strongest-performing, diversified, and fastest growing banks in the nation. Ranked as one of America’s Best Banks by Forbes (2019), their commitment to providing unparalleled client service supporting the businesses and individuals in the communities they serve drives everything they do.
With over 40 branch locations across multiple states, Pacific Premier Bank offers a full array of deposit & loan products, services for commercial businesses, nonprofit organizations, and consumers. They specialize in servicing small and middle-market businesses and professionals who need a broad range of loan, deposit, and treasury management products.
VIEW WEBSITE
TENANT PROFILES
OWNERSHIP NASDAQ: WING
YEARS IN BUSINESS
36 years
MARKET CAP
$2.27 Billion
REVENUE 2017
$1.3 Billion
HEADQUARTERS Richardson, TX
CREDIT RATING BBB
WINGSTOPWingstop Inc. is a publicly-traded (Nasdaq: WING) chain of nostalgic, aviation themed restaurants specializing in chicken wings. Wingstop® is the largest fast casual chicken wings-focused restaurant chain in the world. Today there are more than 1,100 franchise locations and 26 company-operated restaurants across the globe with system-wide sale of nearly $1.3 billion.
In 1997 Wingstop® began offering franchises and today they are one of the fastest-growing concepts in the country by attracting top entrepreneurs and operators. Launched in 2005, Far West Restaurant Group (lease guarantor) has grown to become of the of the largest operators of Wingstop franchises. The company and its affiliated entities run 31 restaurants in Southern California, from Burbank to San Clemente, and 3 in Las Vegas. In addition, a sister company operates three Dunkin’ Donuts® franchises in Southern California.
VIEW WEBSITE
72401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS
SITE PLAN
MEDICAL OFFICE (NAP)
W WHITTIER BLVD
ALLSTON ST
S C
ON
CO
UR
SE
AV
E
82401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS
02FINANCIAL OVERVIEW
INVESTMENT SUMMARY
RENT ROLL
LEASE ABSTRACTS
LOS ANGELES
CORONA
ORANGE
FULLERTON
DOWNEYINGLEWOOD
SANTA MONICA
BURBANK
SAN FERNANDO
PASADENA
LONG BEACH
TORRANCECERRITOS
ANAHEIM
SANTA ANA
LAKE FOREST
RANCHOPALOS
VERDES
MANHATTANBEACH
Hermosa
Beach
EL SEGUNDO
Laguna Beach
Dana Point
LAGUNA NIGUEL
TEMECULA
SAN CLEMENTE
IRVINE
NEWPORTBEACH
Terminal
Island
RIVERSIDE
SAN BERNARDINOFONTANA
ONTARIO
CHINO
POMONA REDLANDS
MORENO VALLEY
EL CERRITO
ARCILLA
MEAD VALLEY
WOODCRESTMarch Air
Reserve Base
Mt Baldy
Running
Springs
Crestline Big Bear Lake
LAKEVIEW
NUEVO
WINCHESTER
SAN JACINTO
BEAUMONT
CHERRY VALLEY
CALIMESA
BLOOMINGTON
MENIFEECanyon Lake
MURRIETA
Lake Elsinore
Lakeland
Village
DELUZ
RAINBOW
PERRIS
SILVERADO
Brea
CITY OFINDUSTRY
HEMET
YUCAIPAOAK GLEN
BEVERLY HILLS
AZUSA
COVINA
LA CAÑADAFLINTRIDGE
SHERMAN OAKS
HOLLYWOOD
Chino Hills
State Park
San Bernardino
National Forest
PACIFIC OCEAN
MALIBU
THOUSAND OAKS
SIMI VALLEY
MOORPARK
CALABASAS
Topanga
State Park
Canoga Park
Redondo
BeachCARSON
COMPTON
LAKEWOOD
SAN PEDRO
FINANCIAL OVERVIEW
Monthly Rent $16,457
Annual Rent $197,484
Annual Rent PSF $47.70
ESTIMATED OPERATING INFORMATION
Property Taxes Tenant Responsible
Insurance Tenant Responsible
CAM Tenant Responsible
Management 10% of CAM
ESTIMATED OPERATING INFORMATION
Scheduled Rent $197,484
Plus Recapture NNN
Effective Gross Income $197,484
Less Expenses NNN
Net Operating Income $197,484
FINANCIAL HIGHLIGHTS
INVESTMENT SUMMARY
$4,250,000
OFFERING PRICE
2
# OF TENANTS
4.65%
CAP RATE
2019
YEAR BUILT
SUBJECT PROPERTY
LAX
SNA
LGBDISNEYLAND
N
2401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS 9
Square Footage Rental Information Rent Increases Lease
Suite # Tenant Name Area Project % Base Rent/SF Total Rent Date Amount Options Start End
1 PACIFIC PREMIER BANK 2,700 SF 65% $10,665.00 $3.95/SF $10,665.00 2 (5 year) 10/1/2019* 9/31/2026
10/1/2026 $11,731.50 Option 1
10/1/2031 $12,904.65 Option 2
2 WINGSTOP 1,448 SF 35% $5,792.00 $4.00/SF $5,792.00 2 (5 year) 10/1/2019* 9/31/2029
10/1/2024 $6,371.20
10/1/2029 $7,008.32 Option 1
10/1/2031 $7,709.15 Option 2
Building Totals ±4,148 SF 100% $16.457.00 $16,457.00
RENT ROLL
W WHITTIER BLVD
N W
ILC
OX
AV
E
S C
ON
CO
UR
SE
AV
E
GA
RFI
ELD
AV
E
SOUTH MONTEBELLO
SUBJECT PROPERTY
N
*Estimated Start Date
2401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS 10
LEASE ABSTRACTS
PACIFIC PREMIER BANK
Lease Commencement 9/5/2018
Lease Expiration 9/30/2025
Primary Term 7 years
Options Two (2) Five (5) years
Base Rent Year $127,980.00
Option 1 $140,778.00
Option 2 $154,855.80
Property Tax NNN
Insurance NNN
Utilities NNN
CAM NNN
Management Fee 10% of CAM
WINGSTOP
Lease Commencement 4/5/2019
Lease Expiration 4/30/2029
Primary Term 10 years
Options Two (2) Five (5) years
Base Rent Year 1–5 $69,504.00
Year 6–10 $76,454.40
Option 1 $84,099.84
Option 2 $92,512.72
Property Tax NNN
Insurance NNN
Utilities NNN
CAM NNN
Management Fee 10% of CAM
SUBJECT PROPERTY
W WHITTIER BLVD
S C
ON
CO
UR
SE
AV
E
N
2401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS 11
122401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS
03AREA
OVERVIEWDEMOGRAPHICS
LOCAL AMENITIES
LOS ANGELES COUNTY OVERVIEW
DEMOGRAPHICS
1 Mile 3 Miles 5 Miles
INCOME
2018 Median Household Income $43,884 $52,358 $50,997
2018 Average Household Income $59,440 $69,588 $67,957
2018 Per Capita Income $17,278 $19,813 $18,529
POPULATION
2018 Estimated Total Population 34,108 211,791 726,972
2023 Forecasted Total Population 34,735 215,662 739,634
2010 Census Total Population 32,936 204,975 705,321
Population Growth 2019 to 2024 3.56% 3.33% 3.07%
Forecast Population Growth 1.84% 1.83% 1.74%
HOUSEHOLDS
2018 Estimated Total Households 9,801 59,581 195,364
2023 Forecasted Total Households 9,929 60,364 197,733
2010 Census Total Households 9,553 58,154 191,290
Household Growth 2010 to 2019 2.60% 2.45% 2.13%
Forecast HH Growth 2019–2024 1.31% 1.31% 1.21%
98%
EMPLOYED
$67,957
AVERAGE HH INCOME
63,335
MONTEBELLO POPULATION
ROSEMEAD
ALHAMBRA
MONTEREY PARK
EAST LOS ANGELES
MONTEBELLO
SOUTH GATE
PICO RIVERA
1 Mile
3 Miles
5 Miles
SUBJECT PROPERTY
2401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS 13
LOCAL AMENITIES
COMMERCE CENTER
SHOPPING PLAZA
ATLANTIC BLVD & WHITTIER BLVD
SUBJECT PROPERTY
MART OF MONTEBELLO
MONTEBELLO PLAZA
WHITTIER BLVD
WHITTIER BLVD
BEVERLY BLVD
BEVERLY BLVD
ATLANTIC B
LVD
ATLANTIC B
LVD
WHITTIER BLVD
GA
RF
IEL
D A
VE
N
2401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS 14
LOS ANGELES
CORONA
ORANGE
FULLERTON
DOWNEYINGLEWOOD
SANTA MONICA
BURBANK
SAN FERNANDO
PASADENA
LONG BEACH
TORRANCECERRITOS
ANAHEIM
SANTA ANA
LAKE FOREST
RANCHOPALOS
VERDES
MANHATTANBEACH
Hermosa
Beach
EL SEGUNDO
Laguna Beach
Dana Point
LAGUNA NIGUEL
TEMECULA
SAN CLEMENTE
IRVINE
NEWPORTBEACH
Terminal
Island
RIVERSIDE
SAN BERNARDINOFONTANA
ONTARIO
CHINO
POMONA REDLANDS
MORENO VALLEY
EL CERRITO
ARCILLA
MEAD VALLEY
WOODCRESTMarch Air
Reserve Base
Mt Baldy
Running
Springs
Crestline Big Bear Lake
LAKEVIEW
NUEVO
WINCHESTER
SAN JACINTO
BEAUMONT
CHERRY VALLEY
CALIMESA
BLOOMINGTON
MENIFEECanyon Lake
MURRIETA
Lake Elsinore
Lakeland
Village
DELUZ
RAINBOW
PERRIS
SILVERADO
Brea
CITY OFINDUSTRY
HEMET
YUCAIPAOAK GLEN
BEVERLY HILLS
AZUSA
COVINA
LA CAÑADAFLINTRIDGE
SHERMAN OAKS
HOLLYWOOD
Chino Hills
State Park
San Bernardino
National Forest
PACIFIC OCEAN
MALIBU
THOUSAND OAKS
SIMI VALLEY
MOORPARK
CALABASAS
Topanga
State Park
Canoga Park
Redondo
BeachCARSON
COMPTON
LAKEWOOD
SAN PEDRO
SUBJECT PROPERTY
N
LAX
SNA
LGBDISNEYLAND
PORTS OF LOS ANGELES AND LONG BEACH
2401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS 15
LOS ANGELES COUNTY OVERVIEW
One of the original counties of California, created at the time of statehood in 1850, Los Angeles County has evolved from its agricultural beginnings into an economic behemoth and bellwether for the rest of the country.
The county encompasses 4,751 square miles of Southern California bordering 70 miles of coast on the Pacific Ocean and contains mountain ranges, valleys, forests, islands, lakes, rivers, and desert.
It is the most populous county in the United States and the third-largest metropolitan economy in the world, with a nominal GDP of over $700 billion.
While L.A. County is the center-piece, the larger L.A. Basin metropolitan market area also includes Orange County, and lies adjacent to the Inland Empire to the east, San Diego County to the south, and Ventura County to the north. Each of these other market areas help spur demand and growth in L.A. County, with a diversified set of dynamic industry clusters and employment drivers. Startups, entrepreneurial decision-makers, and small regional divisions of larger companies favor L.A. County for its skilled workforce, housing options, and favorable weather.
TRADE AND LOGISTICS
The Ports of Los Angeles and Long Beach combine to make L.A.’s sea ports complex the largest in the Western Hemisphere, handling over 40% of all inbound containers for the entire United States.
MANUFACTURING
Los Angeles County is the largest manufacturing center in the U.S., with more manufacturing jobs (503,000) than the state of Michigan.
ENTERTAINMENT AND INFOTECH
With many major studios like Walt Disney, 20th Century Fox, and Paramount Pictures, and a modern, internet-based media industry, Los Angeles County is the undisputed “Entertainment Capital of the World.”
2401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS 16
LARGEST COUNTY ECONOMY IN THE U.S.
If Los Angeles County were a nation, its economy would be the 19th largest in the world. It is home to more than 244,000 businesses, with more minority- and women-owned businesses than any other in the nation. It is also home to dozens of the largest and most successful companies in the world including The Walt Disney Company, MGM, Mattel, AECOM and Avery Dennison. It is the nation’s top international trade center and manufacturing center. Los Angeles County’s 37 administrative departments and $24.2 billion budget provide extensive business opportunities to the private sector, in contracts for both goods and services.
HUGE CONSUMER MARKET
Home to more than one-quarter of California residents, Los Angeles County has the largest population of any county in the nation, and exceeded by only eight states. More than 1 million of the 10.4 million residents live in unincorporated areas, whose municipal services are provided by the county. The other 9.3 million live in 88 cities, located throughout a 4,084-square-mile area. It is one of the most ethnically diverse counties in the U.S., with more than 140 cultures and 224 languages represented in different neighborhoods.
TOP LOS ANGELES AREA COMPANIESLOS ANGELES AREA
$700 BILLION NOMINAL GDP
10.4 MILLION RESIDENTS
#1 CUSTOMS DISTRICT IN THE US
4.7% UNEMPLOYMENT RATE
(NOV 2018)
3RD MOST ACTIVE CARGO AIRPORTIN THE US (LAX)
2 LARGEST SEAPORTS IN AMERICA
ONE OF THE MOST ETHNICALLY DIVERSE COUNTIES IN THE U.S.
2.2% GDP GROWTH FORECASTFOR 2019
2401 WEST WHITTIER BOULEVARD OFFERING MEMORANDUM KIDDER MATHEWS 17
KIDDER.COM
PETER BEAUCHAMP
[email protected] N° 01151023
EXCLUSIVELY REPRESENTED BY
FOUY LY
[email protected] N° 01223864