Offering Memorandum

BANK OF AMERICA
INVESTMENT OFFERING
Absolute NET Retail Property FOR SALE
7700 El Camino Real Carlsbad, California 92009
A PRIME COASTAL
SAN DIEGO LOCATION
JIM RINEHART | Lic. #01824068 | 858.523.2092 | jrinehart@retailinsite.net
MIKE MOSER | Lic. #00977876 | 858.523.2089 | mikemoser@retailinsite.net
RETAIL INSITE
Commercial Real Estate
TABLE OF
CONTENTS:
INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
LEASE SUMMARY
PROPERTY OVERVIEW
TRADE & AREA DETAILS
7700 El Camino Real | SALE
INVESTMENT HIGHLIGHTS:
• Single Tenant, Bank of America, full NNN
Lease
• Below market base rent allows for future
upside
• Annual Escalations
• Bank deposits show this as one of the
highest performing branches in San Diego.
• Adjacent to THE BEACON shopping center,
to include Equinox Gym, the first in San
Diego county and exciting new retail and
restaurants.
• Trophy Coastal San Diego location
3
Investment Highlights
7700 El Camino Real | SALE
INVESTMENT Summary:
PRICE:
$8,950,000
EXISTING RETAIL
NET INCOME:
$435,137.72
CAP RATE:
4.8%
TENANT PROFILE:
Bank of America
Bank of America (abbreviated as BofA) is an American
multinational banking and financial services corporation
headquartered in Charlotte, North Carolina. It is the second
largest bank holding company in the United States by assets.
As of 2013, Bank of America is the twenty-first largest company
in the United States by total revenue. In 2010, Forbes listed
Bank of America as the third biggest company in the world.
Bank of America provides its products and services through
operating 5,100 banking centers, 16,300 ATMs, call centers,
and online and mobile banking platforms. Its Consumer Real
Estate Services segment offers consumer real estate products
comprising fixed and adjustable-rate first-lien mortgage loans
for home purchase and refinancing needs, home equity lines
of credit, and home equity loans.
4
Investment Summary
7700 El Camino Real | SALE
LEASE Summary:
T ENA N T
SF:
B ANK OF AM ERICA
± 19,400 (taken from Tax Rolls)
MONTHLY BASE RENT:
$36,261.74
NOI:
$435,137.72
BASE RENT INCREASES DURING
THE INITIAL TERM:
2% annually
LEASE EXPIRATION:
December 6, 2021
RENEWAL OPTION(S):
3x5 year options
OPTION RENT:
GUARANTEE:
NNN:
FDIC REPORTS:
5
Lease Summary
Option 1:
Option 2:
Option 3:
2% annual increase continues
Fair Market Value
Fair Market Value
Corporate Guarantee
Absolute Net, Tenant is responsible for all maintenance, repairs, taxes & insurance. The lease
provides that “the parties intend this to be a “triple net”lease with the Landlord having no
responsibility or expense of any kind or nature.” (ARTICLE 5 : Rent)
Bank deposit as of 6/30/2015: $270,510,000
7700 El Camino Real | SALE
PROPERTY Overview
ADDRESS:
770 El Camino Real
Carlsbad, CA 92009
LAND AREA:
57,935 SF (1.33 acres)
TOTAL RENTABLE SF:
± 19,400 SF
PARKING:
63 Parking Spaces
YEAR BUILT:
1980
STORIES:
2
ZONING:
C2- General Commerical Zone
APN:
216-124-25-00
6
Property Overview
7700 El Camino Real | SALE
mino
El Ca
LA COSTA
PLAZA
Real
La Costa Ave
SITE
PROPOSED
EQUINOX
THE BEACON
7
Property Overview
7700 El Camino Real | SALE
BUILDING HISTORY:
In June of 1980, Security Pacific Bank, Predecessor to Bank of
America, entered into a build to suit with the property owner.
Bank of America entered into 4 subsequent amendments,
and in 2011, a ten year extension of the original lease term
plus three five year options to extend.
TODAY:
Bank of America’s branch, including a drive through, occupies
the entire ground floor. Bank of America also occupies
a portion of the second floor for their home loan division
and have chosen to sublease space to several outside office
tenants.
Zoning allows for the following categories:
•
Retail
•
Office
•
Residential Mixed Use
**Retail Insite does not warantee any of the zoning information provided.
Independent investigation on zoning is suggested.
8
Property Overview
7700 El Camino Real | SALE
TRADE AREA Details:
WESTFIELD
CARLSBAD
AREA DETAIL
CARLSBAD
• Located in the heart of La Costa,
This building serves a very affluent
trade area with the nearby
communities of Carlsbad, Encinitas,
La Costa, Rancho Santa Fe, Del
Mar and Solana Beach.
CARLSBAD RESEARCH CENTER
CARLSBAD
PREMIUM
OUTLETS
• Carlsbad Research Center (4.5
million square feet) is within close
proximity to the Property (5.3
miles).
PALOMAR AIRPORT
LA COSTA
FOUR SEASONS RESIDENCE CLUB/PARK HYATT AVIARA
OMNI LA COSTA RESORT
7700 EL CAMINO REAL
• Annual events of LPGA KIA Classic
at Hyatt Aviara and WTA Tennis at
La Costa Resort bring additional
customers to the trade area.
THE FORUM
WESTFIELD
NORTH COUNTY
FAIR
• The city of Carlsbad has also been
able to maintain it’s gorgeous open
spaces, while providing a friendly
small-town atmosphere with
unmatched amenities.
ENCINITAS
RANCHO SANTA FE
DEMOGRAPHICS:
1 MILE
3 MILE
Population:
8,303
89,519
Households:
3,436
34,988
Average Age:
Median HH Income:
TRAFFIC COUNT:
(CARS PER DAY)
*SANDAG report
9
Trade Area Details
ESCONDIDO
PROMENADE
31.5
32.7
$130,911
$126,377
El Camino Real:
33,600 ADT
La Costa Avenue:
19,000 ADT
TOTAL:
52,600 ADT
7700 El Camino Real | SALE
CARLSBAD AREA
10
Trade Area Details
7700 El Camino Real | SALE
SITE
a n ta
Fe R
d
THE BEACON
ve
ta A
Cos
La
an
ch
oS
THE FORUM
R
Proposed
11
Trade Area Details
FOR MORE INFORMATION, PLEASE CONTACT:
Jim RInehart
Mike Moser
Lic. #1824068
Lic. #00977876
JRinehart@retailinsite.net
MikeMoser@retailinsite.net
619.726.8557858.523.2089
Erin CadieuxMaya Grim
Lic. #01952070
Lic: #01273486
ECadieux@retailinsite.net
MGrim@retailinsite.net
858.523.2086858.523.2094
RETAIL INSITE
Commercial Real Estate
12264 El Camino Real Ste. 202
San Diego, CA 92130
Lic. # 01206760 | T: 858 523 2090
retailinsite.net
The information above has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make 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.