7-Eleven, Calexico - OM.indd

INVESTMENT OPPORTUNITY
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38,000 Average Daily Crossings
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Ryan Barr
760.448.2446
rbarr@lee-associates.com
1101 ANDRADE AVE | CALEXICO, CA 92331
Ryan Benne
760.448.2449
rbenne @lee-associates.com
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
Calexico, CA
OFFERING MEMORANDUM
EXCLUSIVELY REPRESENTED BY:
Ryan Barr
760.448.2446
rbarr@lee-associates.com
Ryan Bennett
760.448.2449
rbennett@lee-associates.com
Barr & Bennett Net Leased Investments
www.nnninvestmentgroup.com
Page 2 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
DISCLAIMER
Lee & Associates hereby advises all prospective purchasers of Single-Tenant Net-Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and
will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee,
warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a single-tenant property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information
before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity.
Lee & Associates expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions
or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a
single-tenant property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial,
legal, and construction advisors should conduct a careful, independent investigation of any single-tenant property to determine to your satisfaction with
the suitability of the property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all
legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration,
it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be
set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant
and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted
in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for
conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood
of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with
a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Lee & Associates Investments and hold it harmless from any kind of claim, cost, expense, or liability
arising out of your investigation and/or purchase of this single-tenant property.
Page 3 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
INVESTMENT OPPORTUNITY
INVESTMENT SUMMARY
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
Page 4 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
INVESTMENT OPPORTUNITY
Investment Summary
Investment Overview
Barr & Benne Net Leased Investments is pleased to exclusively offer for sale a 2,424 square foot 7 Eleven
Convenience store and motor fuel facility with six (6) gas pumping sta ons, located at the hard corner of
Highway 98/Birch Street and Andrade Avenue. This store has a new ten year lease, which is corporately
backed by 7-Eleven, Inc. a Texas Corpora on (Rated “AA-“ by Standard & Poor’s). The new ten year lease is
an absolute Triple (NNN) Net lease with three (3) five year op on periods, increasing at each op on by 10%.
This 7 Eleven loca on greatly benefits from its strategic posi on along Highway 98/Birch street, the main
arterial highway that runs through Calexico from Interstate 8 highway. Approximately 38,000 people cross
the border every day at the Calexico/Mexicali Interna onal crossing. Motorists traveling back and forth
from the Interna onal Border to Arizona will pass the “subject property” via Highway 98/Birch Street
heading from/to Interstate 8. The “subject property” is also the first/last gas sta on a motorist will see as
they commute to the Mexicali border along this route.
This loca on increases 7 Eleven’s presence to four loca ons in Calexico. Many other na onal retailers reside
in and con nue to enter the Calexico market to capitalize on the needs of commuters and travelers u lizing
the Mexicali border crossing. Other Na onal Retailers in the surrounding area include Rite Aid, Food 4 Less,
Union Bank, Carl’s Jr., Dress Barn, Wal-Mart Supercenter, McDonalds, Pizza Hut, Burger King, Jack in the Box,
Sonic, Denny’s, KFC, Radio Shack, GNC, Toys-R-Us, Starbucks, Subway, Li le Caesars, Forever 21, Game Stop,
H&R Block, Payless Shoes, Sprint, Chase Bank, Verizon Wireless, Family Dollar, Holiday Inn Express, Ashley
Furniture, Best Western, Shell Gas, Dollar Tree, Rent-A-Center, Super Cuts, Applebee’s, Church’s Chicken,
and Carrow’s Restaurant.
Investment Highlights
•
•
•
•
•
•
Brand New Corporate Lease With S&P Rated AA- Tenant
“Recession Proof” Tenant
Newly Remodeled Property – No Deferred Maintenance
Hard Corner Loca on
Located Along Main Thoroughfare Connec ng the Mexicali Border Crossing to Interstate-8 East
Owner can increase a er-tax cash flow by deprecia ng the improvements. Gas Sta on proper es
allow owners to use an accelerated 15-year deprecia on schedule for the improvements versus a
typical commercial deprecia on schedule of 39 years.
Page 5 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
INVESTMENT OPPORTUNITY
Investment Summary
INVESTMENT HIGHLIGHTS
Price:
$2,200,000
NOI:
$120,000
Cap:
5.45%
PROPERTY OVERVIEW
Address:
1101 Andrade Ave
Calexico, CA
Tenant:
7-Eleven
Guarantor:
7-Eleven, Inc., a Texas corpora on
Square Feet:
2,425 Sq. Ft.
Acres:
43,560 (1 acre)
Ownership:
Fee Simple
Year Built/Redeveloped:
2012
TERMS, BASE RENT & OPTIONS
November 1, 2012
Lease Commencement:
Lease Expira on:
October 31, 2022
Lease Term:
10 Years
Base Rent:
Years 1-10: $120,000
Op ons:
Three 5-Year op on to renew
Years 11-15: $132,000
Years 16-20: $145,200
Years 21-25: $159,720
Lease Type:
Absolute Triple Net Lease
DEMOGRAPHICS (2012) | Source: SitesUSA
Category
Popula on
Day me Popula on
Households
Avg HH Income
Traffic Counts
Birch Street
Andrade Avenue
1/2 Mile
4,704
261
1,230
$51,722
1 Mile
17,780
2,636
4,773
$50,950
Vehicles Per Day
17,000
8,400
Page 6 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
INVESTMENT OPPORTUNITY
TENANT SUMMARY
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
Page 7 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
INVESTMENT OPPORTUNITY
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
Tenant Overview
7-Eleven, Inc. What started out as an ice house in Dallas, Texas, back in 1927
has grown and evolved into the world’s largest operator, franchisor and licensor
of convenience stores. 7-Eleven, Inc. was built on the premise of providing
convenience-oriented customers with what they want, where they want it. Since
then, the company’s success is due in part to a talented management team who
con nue to work under this guiding principle.
Joe DePinto, president and chief execu ve officer, and 7-Eleven management lead 7-Eleven’s vision
to be the best retailer of convenience by not only effec vely evalua ng and quickly responding to
everyday challenges, but also providing the 7-Eleven team with the tools and guidance needed to
serve its guests.
The company operates, franchises and licenses approximately 8,030 stores in the U.S. and Canada.
Of the more than 7,550 stores the company operates and franchises in the United States, more than
5,700 are franchised.
Outside of the U.S. and Canada, there are more than 40,000 7-Eleven and other convenience stores
in Japan, Taiwan, Thailand, South Korea, China, Malaysia, Mexico, Singapore, Australia, Philippines,
Indonesia, Norway, Sweden and Denmark.
7-Eleven, Inc.
•
Headquarters: Dallas, TX
•
Parent Company: Seven & I Holdings, Ltd
•
2010 Revenue: 16.68 Billion
•
Total Loca ons in U.S.: 8,030
•
Industry: Retail Convenience Stores
•
Website: www.7-eleven.com
Seven & I Holdings is 7-Eleven, Inc.’s Parent Company; a Japanese diversified retail group headquartered
in Japan. Founded originally in 1920 as Ito-Yokado, Seven & I is now the fi h largest retailer in the
world, with 35,000 stores in approximately 100 countries.
Seven & I Holdings was established on September 1, 2005 as the parent company of the 7-Eleven
Japan chain of convenience stores, the Ito-Yokado grocery and clothing stores, and the Denny’s Japan
family restaurants. In November 2005, it completed the purchase of US-based 7-Eleven Inc.
Top Honors
7-Eleven has been honored by numerous companies and organiza ons throughout its 85 years in
business. Recent 7-Elevenaccolades include:
• No. 2 on Forbes magazine’s “Top Franchise for the Money” for 2012
• No. 3 on Entrepreneur magazine’s “Franchise 500” for 2012
• No. 3 on Forbes magazine’s “Top 20 Franchises to Start” for 2011
• No. 1 in Store Growth by Convenience Store News for 2012
• No. 2 on Franchise Times magazine’s “Top 200 Franchise Companies”
• No. 2 on AllBusiness “Top 5 Franchises” for 2012
• No. 3 among Top 100 Global Franchises by Franchise Direct
Page 8 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
INVESTMENT OPPORTUNITY
AREA OVERVIEW
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
Page 9 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
INVESTMENT OPPORTUNITY
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
Area Overview
Imperial Valley, CA
The Imperial Valley lies in California’s Imperial County. It is located in southeastern Southern
California, and is the site of an urban area largely centered around the city of El Centro. The
Valley is bordered by the Colorado River to the east and, in part, the Salton Sea to the west.
Farther west lies the San Diego and Imperial County border. To the north is the Inland Empire’s
Coachella Valley, which together form the Salton Trough, or the Cahuilla Basin, also the county
line of Imperial and Riverside coun es, and to the south the interna onal boundary with the
U.S. state of California and Baja California.
The Imperial Valley is rich in natural beauty, local history, and culture. The unique culture of the area blends the two
different countries of the United States with Mexico, due to its regional history and geographic loca on along the
interna onal border. This creates a small town atmosphere, and an economy based on agriculture, and a strong work
ethic for the people of the Valley. From early in January through the winter holiday season, the Imperial Valley hosts
many fes vals and ac vi es that keep things moving. From the aerial displays of the Blue Angels to the Tomato Fes val.
From the North to the South. Imperial Valley offers visitors and residents a taste of many cultures such as those from
Mexico with all its sights, sounds and tastes wai ng to be savored. Mexico can easily be accessed by vehicle or by
walking due to the Valley’s proximity to the border.
Projected Economic Growth
»
Expected retail sales growth: 24.3 %
»
Expected job growth: 14.5 %
»
Fastest growing jobs sector: Transport &
Warehousing
»
Expected personal income growth 14.1 %
»
»
»
Expected population growth: 10.3 %
Net migration to account for: 39.0 %
Expected growth in number of vehicles: 15.1 %
Major popula on centers are Brawley, Calexico and El Centro which is the county seat. Imperial Valley is one of the
fastest growing coun es in the State of California, offering many business opportuni es along with a large number of
trade possibili es.
Imperial County had the largest percentage increase in popula on in California between 2008 and 2009 in the state,
according to the California Department of Finance. The county had a popula on growth rate of 2.2 percent between
July 1, 2008, and July 1, 2009. The county’s growth rate has consistently been one of the top 10 out of 58 coun es in
California for the past six years. Last year’s growth rate was 2.43 percent. The popula on will con nue to grow much
faster than the state average, with annual growth in the 2011 to 2016 period averaging 2.0 percent per year.
Sources: Wikipedia, Dot.ca.gov
Page 10 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
INVESTMENT OPPORTUNITY
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
Area Overview
Mexicali, Mexico
Mexicali is the capital of the Mexican state, Baja California and the 2nd largest city in Baja California, Mexico. Mexicali has a popula on of
689,775, according to the 2010 census, while the popula on of the en re metropolitan area reaches 936,826.
Founded on March 14, 1903, Mexicali is situated on the U.S.-Mexico border adjacent to its sister city Calexico, California with which it forms a metropolitan
region, Calexico-Mexicali.
As the city has modernized and become a cosmopolitan and interna onal center in a desert region, it has maintained a sizable middle class and an even
larger upper class. In Mexico, it is recognized for its substan al investment in educa on as well as its low unemployment levels.
Mexicali’s economy was historically based on agricultural products, and to this day it remains a large sector of the economy. As me has progressed however, its economy has
gradually gone from being agriculturally based to industrially based. Companies such as Mitsubishi, Honeywell, Nestle, Coca Cola and Goodrich Corpora on have built plants in
the city and its metropolitan area. Silicon Border is located here as well; a large industrial park that is a high tech manufacturing area. Its goal is to become a global center for
semiconductor manufacturing.
Mexicali is considered among the most prosperous ci es in Mexico. The North American Free Trade Agreement of 1994 that eliminated most trade restric ons
between the two na ons offers Mexicali an economic boom in the next decade.
The current prospects for economic growth in Mexicali rely on in-bond and assembly plants, mainly for export, including companies like, Selther, Daewoo, Mitsubishi, Honeywell,
Paccar, Vitro, Skyworks Solu ons, CareFusion, Bosch, Price Pfister, Gulfstream, Goodrich, Kenworth and Kwikset. Mexicali is also home to many food processing plants such as
Nestlé, Jumex, Bimbo, Coca-Cola, Kellogg, and Sabritas.
There are joint efforts on behalf of the Baja California government and the private sector to a ract more companies to Mexicali based on a cluster strategy focusing on the regions’
strengths of qualified labor, abundant energy and water supplies, a pro-business environment and its loca on on the California border.
Mexicali is located at a Junc on of major interstates and federal highways. These include Interstate 8, leading from San Diego, California to the Arizona Sun Corridor where the
ci es of Phoenix and Tucson dominate, Federal Highway 2, which leads east to San Luis Rio Colorado, Sonora and west to Tijuana, and Federal Highway 5 connec ng San Felipe
with Mexicali. Other roads lead southwest to Ensenada or north to the Imperial Valley.
The U.S.–Mexico border has the second highest number of both legal and illegal crossings of any land border in the world, behind the Canada – United States border.
Over five million cars and trucks travel through the border annually.
Page 11 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
INVESTMENT OPPORTUNITY
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
Area Overview
Calexico, CA
Calexico is a city in Imperial County, California. The popula on was 38,572
at the 2010 census, up from 27,109 at the 2000 census. Calexico is about
122 miles east of San Diego and 62 miles west of Yuma, Arizona. The name
“Calexico” is a portmanteau of California and Mexico, which, like that of
its adjacent sister city of Mexicali, emphasizes its iden ty as a border city.
Calexico’s loca on provides easy overnight trucking access to all those
transporta on hubs plus the ports of Long Beach, California, and Ensenada, Baja California, Mexico.
The city’s strategic loca on is seen by many as the prime link between the interior of Mexico and
the major markets along the west coast of the U.S. and Canada.
Calexico is served by State Routes 98, 7 and 111, with direct connec on to Interstate 8 and State
Route 86. There are eighteen regular and irregular common carriers for intrastate and interstate
truck service to Calexico.
Sta s cs
»
Popula on: 31,815 (est 2012)
»
Median age: 31.8 years
»
Median household income: $39,242
»
Median home value: $120,000
»
Zip codes: 92231, 92232
Sources: DQNews.com, SitesUSA
Calexico is one of California’s best kept secrets. A deligh ul blend of American and Mexican cultures,
Calexico’s small-town lifestyle, combined with its convenient proximity to the metropolitan areas
of Mexicali and San Diego, make it a great place to live. Calexico’s climate is sunny year-round, and
offers li le to inhibit outdoor recrea on. Golfing, water sports, hun ng, fishing and hiking are all
available in the immediate area, and the beau ful beaches of San Diego and Baja California are
easily accessible for day trips or fun-filled vaca ons. Just across the border, Mexicali is a cultural
and entertainment center offering ample opportunity for fine dining, theatre, music and more.
The City of Calexico’s future holds, economic growth unparalleled in Imperial Valley history.
Calexico’s key proximity to Mexicali, Baja California, Mexico posi ons the city to take advantage of
all future prosperity.
Drama c city growth is imminent. Calexico’s key loca on and lifestyle will fuel inevitable growth in
popula on as well as the local economy.
Page 12 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
INVESTMENT OPPORTUNITY
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
Aerial Photos
Page 13 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
INVESTMENT OPPORTUNITY
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
Aerial Photos
Page 14 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
INVESTMENT OPPORTUNITY
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
Location Map
7-Eleven
1101 Andrade Ave | Calexico, CA 92331
Page 15 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
INVESTMENT OPPORTUNITY
7-Eleven | 1101 OVERHEAD
Andrade AveSHOT
| Calexico,
CA 92331
OF 7-ELEVEN
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No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
INVESTMENT OPPORTUNITY
LOOKING WEST
er
co Bord
i
x
e
M
/
U.S.
Calexico
Public Library
Villa De Oro
Plaza
Birch St
Villa
Santa Fe
Park
FUTURE
RETAIL
DEVELOPMENT
SUBJECT
PROPERTY
Andrade Ave
Andrade Ave
FUTURE
RETAIL
DEVELOPMENT
El Sol
Meat Market
N
Page 17 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
INVESTMENT OPPORTUNITY
VIEW LOOKING SOUTHWEST
er
xico Bord
e
M
/
.
.S
U
xico
U.S. / Me
Border
Calexico
Airport
Airp
ort
San Diego State University
Imperial Valley Campus
Calexico
Public
Library
Vila De Oro
Plaza
Villa
Santa Fe
Park
And
rad
e Av
e
t
hS
c
r
Bi
FUTURE
RETAIL
DEVELOPMENT
FUTURE
RETAIL
DEVELOPMENT
SUBJECT
PROPERTY
And
rad
e Av
e
El Sol
Meat Market
N
Page 18 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
INVESTMENT OPPORTUNITY
VIEW LOOKING SOUTH
Mexicali
U.S. / Mexico Border
U.S. / Mexico Border
Calexico
Public Library
FUTURE
RETAIL
DEVELOPMENT
Andra
de Av
e
Villa
Santa Fe
Park
Birch St
Birch St
El Sol
Meat Market
SUBJECT
PROPERTY
FUTURE
RETAIL
DEVELOPMENT
N
Page 19 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
INVESTMENT OPPORTUNITY
/
U.S.
SURROUNDING RETAILERS
M
r
orde
B
o
exic
Mexicali
Birch St
FUTURE
RETAIL
DEVELOPMENT
SUBJECT
PROPERTY
Andrade Ave
Andrade Ave
FUTURE
RETAIL
DEVELOPMENT
El Sol
Meat Market
N
Page 20 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
INVESTMENT OPPORTUNITY
VIEW LOOKING NORTHWEST
El Centro
FUTURE
RETAIL
DEVELOPMENT
SUBJECT
PROPERTY
Birch
St
ve
eA
d
a
dr
An
El Sol
Meat Market
Birch
St
ve
eA
d
a
dr
An
FUTURE
RETAIL
DEVELOPMENT
N
Page 21 of 22
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.
7-Eleven | 1101 Andrade Ave | Calexico, CA 92331
INVESTMENT OPPORTUNITY
Exclusively Listed by:
Ryan Barr
760.448.2446
rbarr@lee-associates.com
Ryan Benne
760.448.2449
rbenne @lee-associates.com
www.nnninvestmentgroup.com
No warranty or representa on is made as to the accuracy of the foregoing informa on. Terms of sale, lease, and availability are subject to change or withdrawal without no ce.