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Offering Memorandum 3030 Myers St, Riverside, CA Frank Vora, CCIM Vice President 9512763645 [email protected]
Offering Memorandum
3030 Myers St, Riverside, CA
Frank Vora, CCIMVice President951276[email protected]
Frank Vora, CCIMVice President
9512763645
The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve assubstitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or otherprofessional area before making any decisions.
TABLE OF CONTENTS
Confidentiality & Disclaimer
SECTION I INVESTMENT SUMMARYOffering Summary
Investment Highlights
Property Description
SECTION II TENANT OVERVIEWAmerican Residential Services ARS
RighTime Home Services
SECTION III PROPERTY OVERVIEWSite Plan
Building Floor Plan
SECTION IV AREA MAP & OVERVIEWRegional Map
Location Map
Aerial Map
Aerial View Looking East
Aerial View Looking West
Business Map
Area Overview
CONFIDENTIALITY & DISCLAIMERARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from Lee & Associates and should not be made available to any other person or entitywithout the written consent of Lee & Associates. This Offering Memorandum has been prepared to provide summary,unverified information to prospective purchasers and to establish only a preliminary level of interest in the subject property. Theinformation contained herein is not a substitute for a thorough due diligence investigation. Lee & Associates has not made anyinvestigation, and makes no warranty or representation, with respect to the income or expenses for the subject property andfuture projected financial performance of the property, the size and square footage of the property and improvements, thepresence or absence of containing substances, PCB's or asbestos, the compliance with State and Federal regulations, thephysical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant'splans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandumhas been obtained from sources we believe to be reliable; however, Lee & Associates has not verified, and will not verify, any ofthe information contained herein, nor has Lee & Associates conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potentialbuyers must take appropriate measures to verify all of the information set forth here in.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT LEE & ASSOCIATES FOR MORE DETAILS.
INVESTMENTSUMMARY
SECTION I
OFFERING SUMMARYARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
Lee & Associates is pleased to offer for sale to qualifiedinvestors a single tenant industrial property leased to anationwide corporation, American Residential Services (ARS)and located in a large industrial/office park known as Citrus ParkWest Business Complex in Riverside, CA. ARS is a largeplumbing, heating and air conditioning service corporation with64 locations in 24 states. The tenant recently exercised its 5Year option with a lease expiration in November 2024 and hasbeen in occupancy since 2014. The 36,376 SF building sits ona 2.93 acre lot and is ideally located in West Riverside, justsouth of the 91 freeway and about 6 miles west of Interstate 15,allowing easy access to the southern California freeways.
Offering Price: $5,978,000Net Operating Income: $334,800Capitalization Rate: 5.60%Price/SF: $164Lease Type: NNNBuilding Size: 36,376 SFLand Size: 2.93 AcresYear Built: 1970/2014RenLease Start: 12/1/2014Lease Renewal: 12/1/2019Lease Expiration: 11/30/2024Rent Increases: 3.0% AnnuallyLease Renewal Options: None
INVESTMENT HIGHLIGHTSARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
STABLE CASH FLOW
b A corporate signature lease with ARS American Residential Services Holdings.
b ARS is a network of plumbing, home & commercial HVAC repairs and maintenance businesses.
b Headquarters in Memphis, TN, ARS has 64 locations in 24 states. Over $920 Million of Revenue in 2017.
b Demonstrated commitment to the site by exercising their 5yr lease renewal option, No other option remains.
b The annual rent increases of 3.0% throughout the entire lease term provide strong rent growth and inflation protection
b Historical occupancy since 2014 with excellent payment history.
b Per Dunn & Bradstreet, Plumbing and HVAC equipment installation and repair is a $190 billion industry.
NNN LEASE | FEE SIMPLE OWNERSHIP
b NNN Lease: Tenant pays for property taxes, insurance, CAM and association dues.
b With minimal landlord responsibilities, this is an ideal investment for passive investors.
b Ideal 1031 exchange property.
STRATEGIC LOCATION
b The property sits in West Riverside's Citrus Business Park, which is an infill industrial market and the gateway from Orange andLos Angeles Counties to the Inland Empire. The industrial sub market is an extremely tight market with vacancy rates 2.3% as ofQ4 2019.
b The property is situated just south of SR91 and about 7 miles east of the SR91/I15 Interchange allowing superb regionalaccess to Orange and Los Angeles Counties.
PROPERTY DESCRIPTIONARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
Rentable Building Area: 36,376 SF
Lot Size: 2.93 Acres / 127,631 SF
Office Area: 17,324 SF
Warehouse Area: 19,502 SF
Ceiling Height: 1618' Clear Height
Power: 800 Amps / 277480 volts 3p Heavy
DriveIns: 6 grade level truckloading docks
Zoning: BMP Business and Manufacturing Park
APN: 234240021
Sprinklers: Yes
Year Built/Ren: 1970/2014
Fenced Yard: Yes
Parking: 106 spaces
Parking Ratio: 2.91/1,000 SF
TENANT OVERVIEW
SECTION II
AMERICAN RESIDENTIAL SERVICES ARSARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
History of ARS and Rescue Rooter1975: Rescue Rooter® began as a familyowned business in California.1980: A group of businessmen formed ARS and had locations operating in several states.1995: All locations were unified under the name American Residential Services Inc.19981999: ServiceMaster acquired Rescue Rooter and American Residential Services Inc. These acquisitions added heating, cooling, and plumbing to their family of services, unified under the name of American Residential Services in 2000. ServiceMaster quickly began acquiring other HVAC and plumbing companies, merging them into their primary brands of ARS and Rescue Rooter. Anderson Heating and Cooling, EZ Rooter & Plumbing, Crown Services, Axon, Allied Plumbing Heating & Cooling, and PlugBusters.2006: American Residential Services Inc. separated from ServiceMaster forming a standalone entity under the leadership of Don Karnes CEO and Dave Slott President and COO. These visionaries launched the ARS / Rescue Rooter Network, unifying the locations with a common goal United By Exceptional Service. Additional acquisitions followed including brands such as Florida Home Air Conditioning, Blue Dot Services of Maryland, Will Fix It, and RighTime Home Services expanding the national footprint of the Network.2010: ARS acquired Efficient Attic Services and introduced insulation, radiant barrier, and ventilation services into the network in several locations across the nation. The Energy Efficient Attic® program combines all of these pieces together to improve energy efficiency in the home.________________________________________________________________________________________________________________
American Residential Services One of the nation's largest providers of air conditioning, heating and plumbing services.
Founded: 1980Ownership: PrivateHeadquarters: Memphis, TennesseeLocations: 64 in 24 statesEmployees: about 7,500Revenue (2017): Over $920 millionWebsite: www.ars.com
RIGHTIME HOME SERVICESARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
A part of American Residential Services network, Right Time Home Services is a leading provider of residential AirConditioning, Heating, Plumbing and Electrical systems repair and replacement services in Southern California. They have3 locations including Riverside, Palm Springs and Orange County.
They are available 24/7 to take the call. They offer maintenance plans to fit the homeowners needs that include two visitsto check and tuneup your HVAC system and one Plumbing inspection and one Electrical inspection per year, preferredpricing, priority scheduling and a oneyear parts and service warranty. They hire only the best technicians and are requiredto undergo background checks and drug screening prior to joining our team. They guarantee all their work and will makesure each customer is satisfied. They have a 4.7 star rating from 860 Google reviews.
www.ars.com/rightimeriverside
PROPERTYOVERVIEW
SECTION III
SITE PLANARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
BUILDING FLOOR PLANARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
AREA MAP &OVERVIEW
SECTION IV
REGIONAL MAPARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
LOCATION MAPARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
AERIAL MAPARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
AERIAL VIEW LOOKING EASTARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
AERIAL VIEW LOOKING WESTARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
BUSINESS MAPARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
AREA OVERVIEWARS RighTime Home Services3030 Myers Street | Riverside, CA 92503
Frank Vora, CCIMVice President951276[email protected]
Riverside is a city in Riverside County, California, located in the InlandEmpire metropolitan area. This city is the 59th largest city in theUnited States, 12th largest city in California, and the largest city inCalifornia’s Inland Empire metro area. Riverside is the county seat ofthe eponymous county and named for its location beside the SantaAna River. It is the most populous city in the Inland Empire and inRiverside County, and is located about 60 miles east of Los Angeles.With a population of about 330,000, Riverside is ranked as the 6thlargest city in Southern California . The city leads the Inland Empirein the most measures of economic powers, including; population,income, employment, bank deposits, assessed valuation, officespace, and college enrollment. Riverside is the hub of highereducation with four internationally recognized universities andcolleges serving more than 50,000 students. There is a population ofabout 2.7 million people within a 20mile radius from the city.
Inland Empire area including Riverside continue remain as the mostdynamic industrial market in the entire country benefiting from lowvacancy rates , high demand and growing rents. According to Lee &Associates 4th Qtr 2019 report, the Riverside submarket ofmanufacturing and distribution buildings has a current vacancy rateof 3.52% and a vacancy rate of 2.61% of building sizes between25K50K SF in the East Valley industrial market. Absorption washigh in the 4th qtr as ownerusers and investors continued to takeadvantage of recordlow interest rates. Experts point to GDPgrowth, the Fed keeping interest rates low and pentup demandbeing the key economic drivers in the industrial sector going into2020.
