BROCHURE MASTER BARSTOW .cvx
Transcription
BROCHURE MASTER BARSTOW .cvx
FOR SALE - 328,283 SF RETAIL CENTER - $54.83 PSF! Located at Lenwood Road and the 15 Freeway in Barstow California – a Major Shopping Location! We have an exclusive listing to sell the Barstow Factory Outlets – a fully built, added value retail center located midway between Los Angeles and Las Vegas. Last year 10.4 million visitors drove to Las Vegas using the 15 Freeway which is adjacent to this property. Lenwood (Barstow) is a natural stop for Vegas travelers and every day 20,000 cars exit the Freeway at Lenwood Road to rest, have lunch and many will shop at an existing, highly successful retail center. Because of this success, we believe the Barstow Factory Outlet can be a very profitable acquisition for your business. The former Tanger Outlet (renamed to The Outlets at Barstow) located next door to our Property, is one of the best performing centers in the country and it sold last October 2015 for $106.7 Million ($623 PSF). The sales volume of the Tanger Outlet is $803 per square foot! Because of this high sales volume and the recent high sales price of the Tanger Outlet, we believe there is a demand for many additional rental units and the Barstow Factory Outlet, at its low price, should be a great investment success! The Barstow Outlet is built with 93 stores that total 328,283 sf of rentable space that is situated on a 48.8-acre site. The stores are substantially vacant and the center needs some updating and releasing at higher rents. The owner wants to sell and this property has the potential to provide very high profits at a low entry price. Consider all re-development alternatives, including a two phase development: initially upgrade one half of the existing space at a rent substantially lower that the adjacent property. The remaining 50% could be upgraded after the first phase re-development has stabilized. If the Casino locates next door, additional shoppers would be buying at the Outlet Mall. There is a proposal to build an Indian Casino at the southeast corner of Lenwood and Mercantile and if this proposal becomes a reality, the potential for additional business will soar. Call the City Manager or the Director of Economic Development (Gaither Loewenstein @ 760-255-5177) for additional information. Seller and Broker have no accurate information on the status of the casino and Buyer should rely on its own independent investigation. Thank you for your interest. Please review the following offering memorandum and call us if you have interest. Jim Kinetz (323) 767-2114 and Mike Smith (323) 767-2109 Barstow Factory Outlets 328,283 sq ft 48.8 ac 2552 Mercantile Way Barstow, CA Barstow Outlet Stores Lenwood Road Restaurants Fast Food Hotels Barstow Outlet Stores A good reason to buy this property... The return can be enormous! 1. The competing outlet located next door just sold for $622 per sq ft and has an annual sales volume of $803 per sq ft. 2. Buy the Barstow Factory Outlets, finish the rehab and lease-up for a fraction of $622 per sq ft. At this low cost base - the Barstow Factory Outlets will be strong competition to the neighbor. 3. The lower cost base of the Barstow Factory Outlets will attract tenants and should yield a very high return to the buyer. Sale Comp Jim Kinetz Mike Smith Principal lic # 00788762 (323) 767-2114 jkinetz@lee-associates.com Principal lic # 00978736 (323) 767-2109 mdsmith@lee-associates.com Contents Executive Summary 3 Locator Map 4 Area Overview Amenities Adjacent to Outlet 5 5.1 Close Up Aerial 6 Profit Potential of This Property 7 Property Specifications 8 Assessor Map 9 Zoning Map 10 Operating Statement 11 Rent Roll 12 Layout of Tenant Spaces 13 Sale Comparables 14 History of the Barstow Factory Outlet 15 - 16 ALTA Survey 17 Disclaimer and Confidentiality Terms 18 Executive Summary Land & Building - Factory Outlet Building Rentable Sq Ft Land Acres FAR Year Built Price Offering Price Price psf of Building Price psf of Land Estimated Replacement Cost Asking Price: 1/3rd 328,283 48.85 .15 : 1 1988 - 1993 $18 Million $54.83 $8.46 $59 Million $182 psf building Replacement Cost Sale Comparable Values Building Sales - 2015 (according to the Orange County Business Journal) Tanger Outlet Building sf Land ac Date Sold Sale Price Price psf Annual Sales at Outlet 171,300 41 Oct 2015 $106,700,000 $623 $803 Land Sales - 2015 (1) A one acre restaurant site located on the main access street to other operating restaurants. Utilities are either on site or to property line. (2) Unimproved 1 acre site of vacant desert land (ie sand & gravel) located adjacent to existing development. Site has street frontage and utilities in street Unimproved land, no road or utilities nearby. $16 to $24 psf $6.00 psf est $3.50 psf for 48 ac $0.50 to $0.75 psf Adjacent Synergies Several restaurants and hotels Proposed Indian Casino - Speculative Development that Seller is Not Representing as a Project that will be Developed! This development is not yet approved. Call the Barstow City Manager or the Director of Economic Development (Gaither Loewenstein at 760-255-5177) for the Status and potential economic benefit to the area. We make no representations. Customer Base (Shoppers) Las Vegas Traffic Daily traffic on 15 Freeway Daily cars taking the Lenwood Exit Annual Visitors to Las Vegas using the 15 Freeway Approximate Spending in Vegas on Gifts, Clothes, Accessories etc. (possible outlet customers) 58,000 20,000 10.4 Million $1.13 Billion City of Barstow Population Greater Barstow Area (15 Mi Radius) 36,000 Median HH Income $39,385 Average HH Income $50,336 Barstow will contribute to the sales of the outlet, but the Las Vegas bound visitors from Southern California will be the main source of buying. Barstow Area Amenities Outlet Several Restaurants and two Hotels Stores Jack in the Box LAS VEGAS Locator Map 15 15 BARSTOW Barstow Factory Outlet 15 LOS ANGELES 4 Sales Comp: Tanger Outlet 171,300 SF with 40 Stores on 41 acres Sold Oct 2015 for $623 psf (total price $106.7 Million) One of the best performing outlets in the nation - with a sales volume $803 psf! Estimated NOI $35 psf / yr Real Capital Analytics reported the sale was at a CAP Rate of 5.6%. Assuming the CAP was 5.6% - it means the NOI was aout $3.00 psf. Annual Outlet Sales $138 Million $803 psf Close-up Aerial 6 What is the Profit Potential of the Barstow Factory Outlet? For Sale Barstow Factory Outlets 15 an added value development with high profit potential Asking: $54.83 psf Property Description The Barstow Factory Outlets is a 328,283 square foot factory outlet with 98 units, located at 2552 attracted over 2 Million shoppers because it was located at a natural rest stop for the 58 thousand cars that pass by the Outlet on the 15 Freeway. At that time, there was no vacancy and it was difficult to find a spot to park. I know this because on our many trips to Las Vegas during the 1990's my wife and I always stopped to shop at the Barstow Factory Outlet - it was a good time to take a break from the long drive and we always enjoyed shopping at this outlet. The recession slammed Barstow and Las Vegas hard, however, the economy has completely recovered and the 15 Freeway traffic to Las Vegas now exceeds its pre-recession levels and the Barstow Outlet should again be a fully leased project. The outlet was built in 1988 - 1993 and the buildings are connected by decorative brick and concrete walkways with a substantial amount of landscaping, fountains and driveways. There are reciprocal access easements over the adjacent properties situated west of the Property and there is parking for 1,760 cars and 31 tour buses. Why this Property is a Good Investment. The Barstow Outlet is an added value opportunity that should be very profitable because the low cost basis of this property would permit the buyer to attract new tenants by offering lower rents than the fully occupied Tanger Outlet located next door. The offering price for this property is $18 Million - or about 1/3rd the replacement cost. COMP: Tanger Outlets Sold Oct 2015, $106.7 Million - $623 psf Fully Occupied @ estimated $35 psf/yr. $803 psf $138 Million/yr Mercantile Way Lenwood Rd Estimated NOI: Outlet Sales: For Sale The Tanger Outlet, located next to the Barstow Factory Outlet - Sold October 2015, for $623 per sq ft. Tanger is one of the best performing outlets in the country with a sales volume of $803 psf and an estimated annual NOI of $35 psf (assuming a 6% CAP). The high sales price and the sales volume of Tanger implies the demand for outlet space in this area is extremely high and there is room for many additional tenants at the Barstow Factory Outlet! A Nevada government agency funded a study in 2015 that determined there were 10.4 Million visitors that used the 15 Freeway to travel to Vegas and spend $1.13 Billion a year to purchase products that could be acquired at an outlet. The daily traffic count on the 15 Freeway is 58,000 cars of which 20,000 cars exit at the Lenwood off ramp, and are potential outlet shoppers. Today, the Tanger Outlet (Outlets at Barstow) revenue is $138 Million and we believe the demand for additional stores in the nearby Barstow Factory Outlet is high enough to fill the 328,283 square foot building. The high rents and sales volume of the Tanger Outlet indicates that the low purchase price of the Barstow Factory Outlet make this a great money maker. Buyer to conduct its own financial assumptions. Seller and Broker do not represent this analysis can be achieved. After you purchase this property, perform re-facing, repair the parking lot and add new landscaping and lease-up - and this property can be a very profitable investment. 7 8 Barstow Outlet 0428 - 211-26-0-0000 29.38 ac 0428 - 211-27-0-0000 19.47 ac 9 Barstow Factory Outlet Zoned: Commercial (C) Buyer should check with Barstow to verify that zoning has 10 Income Statement 2015 11 12 13 0428-171-65 9/30/2015 43,560 sf land Earl Freddy Invest $265,000 $6.08 psf land 0428-171-34 7/7/2014 1,060,250 sf land Henry Lee $825,000 $0.78 psf land 14 History of the Barstow Factory Outlet 15 The Barstow Factory Outlet, located halfway to Las Vegas was a natural stop for travelers to Las Vegas to have lunch and spend a couple of hours shopping at the outlet. In the 1990's, this mall was the place to stop to get great shopping deals. At that time, 2 Million shoppers from Southern California and Asia spent money at this mall. Today we estimate 2.3 Million Shoppers stop at the adjacent outlet - all you need to do is to upgrade the Barstow Outlet and lease the units. In the 1990's, the parking lot was full and buses brought groups of shoppers to the outlet and cars would circle searching for a spot to park. There were 1,760 parking spots provided ( 5.4:1) and spots were still hard to find. This was a very crowded development, but it was a great place to shop! I know this because I (really my wife) were frequent shoppers at this outlet during the 1990's. 16 Representation, Disclaimer, Confidentiality and Offering Process Exclusive Representation The property owner (“Seller”) has retained Lee & Associates – Commerce Inc (“Broker”) to exclusively market this property for sale. All questions and tour requests will be handled by Lee & Associates – agents Mike Smith at 323-209-2109, and Jim Kinetz at 323-767-2114 or 310-809-9493. Disclaimer This Investment Offering Memorandum (“Memorandum”) has been prepared by Lee & Associates-Commerce Inc. for use by qualified prospects to determine if they have an interest in further investigation and possibly making an offer to purchase. 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. 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 Seller and Broker. 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 and for accuracy, buyer must independently verify important measurements. 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 and Broker does not represent that these summaries are complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties will receive copies of the documents that Seller has in its possession, and Buyer is 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 Seller or Broker, 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. Confidentiality This Investment Offering Memorandum, except for the information that is a matter of public record are of a confidential nature. By accepting the Investment Offering Memorandum, you agree to hold and treat it in the strictest confidence, that you will not duplicate it, that you will not disclose the Investment Offering Memorandum or any of its contents to any other entity except to outside advisors that are retained to advise you on this possible purchase. Offer Requirements Offers should be sent to the attention of Jim Kinetz or Mike Smith via email (jkinetz@lee-associates.com and mdsmith@lee-associates.com ) - OR by mail to Jim Kinetz or Mike Smith at the following: Mike Smith Principal Lee & Associates – Commerce Inc. 500 Citadel Drive, Suite 140 Commerce, CA 90040 Jim Kinetz Principal Lee & Associates – Commerce Inc. 500 Citadel Drive, Suite 140 Commerce, CA 90040 Representation, Disclaimer, Confidentiality and Offering Process Offers should include • Purchase price including terms and contingencies • Timing for due diligence period and closing date • All deposits, including the amount that is non-refundable • Source of the cash and debt for the acquisition • Financial capability of the purchaser • Buyers are encouraged to tour the Properties If you would like to set up a tour of the Properties, please contact Jim Kinetz or Mike Smith. PLEASE NOTE THE PROPERTY IS BEING SOLD “As-Is, Where-Is” with no express representations or warranties. Seller, with its sole and absolute discretion, reserves the right to remove the Property from the market. Seller expressly reserves the right, in its sole and absolute discretion, to reject any and all proposals or expressions of interest in the Property, to terminate discussions with any party at any time or to extend the deadlines set forth in the time schedule. This Memorandum is subject to prior placement and withdrawal, cancellation or modification without notice. Communication All communications, inquiries and requests should be addressed to the Lee & Associates Team. For more information, please visit our website at https://www.teamlacommercial.com