Brawley -Rio Vista Plaza - 405

FOR SALE
Rio Vista Plaza
Brawley, CA
$7,995,000

Grocery / Drug Anchored Shopping Center

(NAP)
Dominant, Daily-Needs Center with Limited
Competition in the Trade Area
 Below replacement cost / $117 PSF

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
EXECUTIVE SUMMARY
Rio Vista Plaza
Brawley, CA
LOCATION
Rio Vista Plaza
405-461 W. Main Street
Brawley, CA
EXECUTIVE SUMMARY
Price:
Down Payment:
Capitalization Rate:
Cash-on-Cash Return:
Building Size:
Price per Square Foot:
Year Built:
Lot Size:
$7,995,000
35%
6.91 %
7.05 %
67,993 SF
$117.59
1986/2001 (approx.)
± 4.9 acres
FINANCING (Proposed New)
Loan to Value:
65%
Down Payment:
35%
Interest Rate:
Amortization (Years)
Monthly Payment
Annual Debt Service
$5,196,750
$2,798,250
4.75%
25
$29,628
$355,531
Not a Part of Offering
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
PROPERTY HIGHLIGHTS

Dominant Grocery / Drug Anchored Shopping Center. Anchored by
Vons (NAP), Rite Aid, and Imperial Hardware, the property serves as the
dominant daily-needs center for the City of Brawley.

Limited Competing Centers. Within a 10-mile radius of 41,440 people, the
center has the only:


National drugstore chain-- Rite Aid

Large national format supermarket chain-- Vons

Large format hardware store-- Imperial Hardware
Stabilized Investment with High Historical Occupancy. Most of the
tenants (73%) have been operating in the center for over 10 years, with
several long-term tenants of over 20 years. Rite Aid has operated in this
center since about 1967 (originally as Thrifty Payless) and constructed a new
building in 2002.

Synergistic Tenant Mix. The center benefits from an excellent mix of
retail, restaurant, and service businesses-- grocery, pharmacy, hardware,
fitness gym, financial institutions, hair salon, and multiple restaurants.

Excellent Rental Upside. In addition to the upside in leasing out approx.
7,927 sf of vacant space, the rent from the shop space tenants (<4,000 sf)
averages only $1.04 psf/month. Radio Shack is paying the equivalent of $0.21
psf/month with no options to renew at the end of their term. There is also
upside in converting some of the gross leases to NNN.

Low Price / SF. At only $117 PSF, the property is priced below replacement
value.

Separate Parcels. Situated on 5 separate parcels, the opportunity exists to
sell-off individual parcels to increase returns and reduce investment basis.

Tenant Expense Responsibility. Given the way utilities are structured in
the city, the tenants pay their own water/sewer and trash directly to the City
of Brawley (a few common area trash dumpsters do exist). Additionally,
most tenants are responsible for maintenance and replacement of their own
HVAC units.
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
Rio Vista Plaza
Brawley, CA
LOCATION HIGHLIGHTS

Busy Signalized Intersection. Located at a signalized intersection and with 6
access points throughout the center, the property serves as the dominant
daily-needs center for the City of Brawley.

Strategic State Highway Location. The center is strategically located along
State Route 86 (Main Street), which connects Imperial County and the Coachella
Valley (Palm Desert area).

Strong Visibility Along Major Thoroughfare. Main Street also serves as the
highest trafficked east-west corridor in Brawley with over 20,000 cars per day
and is home to the majority of the city’s commercial businesses.

Strong Regional Economy. Brawley and the Imperial County have always
been one of the most productive agricultural regions in the world, but have also
seen substantial growth in other areas including: renewable energy, public
sector, international trade & logistics, and manufacturing. The region also
benefits from its close proximity to the City of Mexicali-- the capital of the State
of Baja California with a population of over 1,100,000.
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
Rio Vista Plaza
Brawley, CA
AERIAL
Rio Vista Plaza
Brawley, CA
SITE
(NAP)
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
RENT ROLL
Suite
405
407-A
407-B
409
411
413
415
435-A
435-B
435-C
435-D
435-E
435-F-H
445
459
461
ATM
Tenant
Rite Aid
Subway
Vacant
First Imperial CU
Fantastic Sam's
Radio Shack
Imperial Hardware
Snap Fitness
Vacant
Vacant
Vacant
Vacant
Vacant
Kotori Restaurant
Donuts Plus
China Inn
Bank of America
Rio Vista Plaza
Brawley, CA
Size
16,787
1,350
1,378
2,522
2,100
2,100
20,100
6,646
704
1,086
1,286
824
2,649
3,361
2,000
3,100
Rent (Mo)
$16,285
$2,086
TOTAL
67,993
$54,421
Leased SF
Vacant SF
60,066
7,927
88.3%
11.7%
$3,743
$2,364
$438
$14,133
$5,134
$2,853
$2,216
$3,112
$2,057
Proforma
Rent/SF Rent/SF
$0.97
$1.55
$1.50
$1.48
$1.13
$0.21
$0.70
$0.77
$0.75
$0.75
$0.75
$0.75
$0.75
$0.85
$1.11
$1.00
Type
NNN
NNN
Start
3/1/2002
8/14/2015
Expiration
2/28/2022
8/13/2020
Options
6 x 5-yrs / Fixed
2 x 5-years / Fixed
Increases
5% each option
3% annual
NNN
NNN
NNN
Gross
NNN
8/31/2005 10/31/2019
1/17/2003 11/30/2016
6/14/2000 6/30/2020
12/11/1989 6/30/2019
12/1/2013 5/31/2019
1 x 3-yrs / FMV
1 x 5-yrs / FMV
None
None
2 x 5-years / Fixed
4% annual
NNN
Gross
Gross
4/1/2013
2/1/1986
12/16/1993
7/21/1998
2 x 10-years / Fixed
None
1 x 5-yrs / FMV
None
3% annual
CPI annual
2% annual-- 8/2017
3/31/2023
7/31/2022
8/14/2022
9/30/2018
Notes
1. Rite Aid-- Tenant is not responsible for any increase in property taxes due to a sale.
2. Radio Shack-- Tenant pays 4% of gross sales. 12-month trailing average sales is $10,953 /month.
3. Imperial Hardware-- After 7/1/2017, either landlord or tenant may terminate w/ 6 month's notice.
4. Kotori Restaurant-- Tenant has a one-time termination right on 3/31/2018 if annual sales are less than $600,000.
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
2% annual
3% annual
Rio Vista Plaza
INCOME & EXPENSES
Income
Gross Scheduled Rent
CAM Charges
Vacancy (Actual / 5% Excluding Anchors)
Gross Income
Expenses (estimated)
Property Taxes (projected)
Insurance
Electricity
Water/Sewer
Parking Lot Sweeping
Landscaping
Repairs & Maintenance
Management
Total Expenses
Net Operating Income
Debt Service (Proposed)
Cash Flow
Brawley, CA
In Place
$ 653,050
64,990
Proforma
736,795
84,014
$
5
%
718,039
(21,709)
799,100
85,250
24,619
5,740
5,590
7,200
7,600
8,425
20,843
165,267
85,250
24,619
5,740
5,590
7,200
7,600
8,425
20,843
165,267
$ 552,772
$0.20
$
633,833
(355,531)
$ 197,241
(355,531)
$
278,302
Cap Rate
6.91%
7.93%
Cash on Cash Return
7.05%
9.95%
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
SITE PLAN
Rio Vista Plaza
Brawley, CA
F
E
D
461
459
C
445
B
415
413 411
435-A
407-B
407
(NAP)
405
MAIN STREET
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
RIO VISTA AVENUE
409
TENANT PROFILES
Rio Vista Plaza
Brawley, CA
Rite Aid is one of the nation’s leading drugstore chains-- the largest chain on the East Coast and the 3rd largest chain in the
United States. Headquartered in Camp Hill, PA, the company has approx. 4,600 stores in 31 states and the District of
Columbia. Rite Aid is a Fortune 500 company and publicly traded on the New York Stock Exchange (ticker symbol: RAD). In
February 2016, Rite Aid shareholders approved a merger plan with Walgreens Boost Alliance, Inc., which is subject to
regulatory approval and scheduled to be completed in the second half of 2016.
www.riteaid.com
Imperial Hardware Company has been serving the Imperial Valley and surrounding communities for over 100 years
spanning 3 generations under the same family ownership. The company has operated at the subject Brawley location
since the late 1980’s, but originally opened in 1910 in the downtown area of the city. Imperial Hardware operates 3 stores
in Imperial County with other stores in El Centro and Holtville. In 1975, Imperial Hardware affiliated with Do It Best Corp.
(formerly Hardware Wholesalers, Inc.), a hardware, lumber, and building materials cooperative based in Fort Wayne, IN
with 3,800 member-owned locations throughout the US and 53 other countries.
www.imperialstores.com
First Imperial Credit Union was established on August 21, 1942, when it was granted a Federal Charter under the name of
Imperial Federal Credit Union. It was the first credit union established in the Imperial Valley and has been serving
members now for more than 73 years currently from 3 locations. First Imperial Credit Union currently holds a community
charter and is a state regulated financial institution.
www.ficu.com
With 2,000 clubs open or in development in 18 countries, Snap Fitness is the world’s premier 24/7 fitness franchise
specializing in smaller fitness gyms than its big box competitors. The company was named the 16th fastest-growing private
company in Inc. Magazine's prestigious 2009 Inc. 500 ranking. Founded in 2003 by CEO Peter Taunton, the Minnesotabased franchisor offers compact, state-of-the-art, 24/7 express fitness clubs that emphasize fast, convenient and
affordable workouts.
www.snapfitness.com
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
TENANT PROFILES (cont.)
Rio Vista Plaza
Brawley, CA
In 1998, Kotori opened its first location in Mexicali and currently operates 11 restaurants in the United States
and Mexico.
www.kotoriwok.com
Subway customers in 111 countries have easy access to a fresh line-up of vegetables for their made-to-order
sandwiches and salads at any of the more than 44,000 franchised locations. The company, founded 50 years
ago by then-17-year-old Fred DeLuca and family-friend Dr. Peter Buck, is still a family-owned business with
thousands of dedicated franchisees/entrepreneurs in neighborhoods around the world, providing easy access
to vegetables, detailed nutrition, dietary, and healthy lifestyle information. This has been a priority for the
SUBWAY® chain for many years.
www.subway.com
Fantastic Sams was the first nationally franchised hair salon and has grown to more than 1,100 locations over
40 years. Unlike discount haircut
franchises, Fantastic Sams offers a full range of salon services, including
haircuts and trend-right styles, color, and waxing. Fantastic Sams invented the no-appointment-needed hair
salon and continues to be an industry leader.
www.fantasticsams.com
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
PARCEL MAP
Rio Vista Plaza
Brawley, CA
APN
Address
Size (approx.)
046-260-047
405 W Main
1.85 ac
046-260-048
407 W Main
0.17 ac
046-260-023
411-413 W Main
0.25 ac
046-260-050
415 W Main
0.50 ac
046-260-049
435 W Main
2.13 ac
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
AREA INFORMATION
Rio Vista Plaza
Brawley, CA
City of Brawley
Incorporated in 1908, Brawley, CA is the third largest city in the Imperial County of California, and strategically located in the center of one of the most productive agricultural
areas in the world. Brawley is rich in natural beauty, local history, and culture. The unique culture blends two different countries, the United States with Mexico due to its
geographic proximity to the international border.
Designated as a Federal Enterprise Community, the city has attracted expanding businesses with Low Interest State Industrial Development
Bonds and Federal Enterprise Bonds, and it is one of two Manufacturing Enhancement Areas in the State of California. On a good weekend,
the area also attracts hundreds of thousands of off-road enthusiasts that are drawn to nearby sand dune recreation areas.
Brawley offers a San Diego State University satellite campus and is in close proximity to Imperial Valley College (junior college). Grades K-8
are served by five different public schools in the Brawley Elementary School District with over 3,800 students. Brawley Union High School
enrolls close to 1,700 students, and the city has other private school options as well.
Distance from Brawley to various cities:
Mexicali, Baja California, MX:
San Diego:
Yuma, Arizona:
Palm Desert:
Los Angeles:
20 miles South
120 miles West
70 miles East
80 miles Northwest
200 miles Northwest
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
AREA INFORMATION
Rio Vista Plaza
Brawley, CA
Imperial County
The Imperial County has a population approx. 179,478 and has always been one of the most productive agricultural regions in the world with a gross production
value in excess of $2.1 Billion in 2013. Over the last few decades, Imperial County has seen an influx of commercial activity and development with a solid
presence and growth of other sectors, including:
Public Sector & Federal Government
Renewable Energy-- Geothermal/Solar/Wind
International Trade & Logistics
Manufacturing
Retail & Hospitality
The region benefits from its close proximity to the city of Mexicali, Mexico-- the capital of the State of Baja California with a population of over 1,100,000. The
City of Mexicali has one of the highest per capita incomes in the country along with some of the lowest
unemployment and crime rates. The two vehicle/
pedestrian ports of entry in Calexico combine for the 3rd busiest border crossing in the USA. And there are over 200 maquiladoras that operate in Mexicali,
including companies such as: Honeywell, Gulfstream,
Cardinal Health, BF Goodrich’s aerospace division, Mitsubishi, Daewoo, Kenworth, Black & Decker and
Sony, among others.
In total, the three ports of entry in Imperial County facilitated bi-national trade valued at over $7.7 Billion in 2013. Union Pacific Railroad (UPR) and Carrizo
Gorge Railway (CGR) provide freight service to and from Imperial Valley. UPR has direct routes to Los Angeles in the west and El Paso in the east. The center
line connects eight communities in Imperial Valley and is the only rail connection from California into Central Mexico.
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
Rio Vista Plaza
DEMOGRAPHICS
Radius
Population:
2020 Projection
2015 Estimate
2010 Census
Growth 2015-2020
Growth 2010-2015
Average Age
2015 Population by Race:
White
Black
Am. Indian & Alaskan
Asian
Hawaiian & Pacific Island
Other
2015 Hispanic Origin
2015 Hispanic Origin (%)
2015 Non-Hispanic Origin
2015 Non-Hispanic Origin (%)
Households:
2020 Projection
2015 Estimate
2010 Census
2015 Average Household Size
Growth 2015 - 2020
Growth 2010 - 2015
Owner Occupied
Renter Occupied
2015 Average Household Income
Median Home Value
Brawley, CA
1 Mile
2 Mile
3 Mile
11,810
11,447
11,124
3.17%
2.90%
34.60
24,440
23,701
23,088
3.12%
2.66%
34.20
27,224
26,344
25,422
3.34%
3.63%
33.90
10,366
303
216
324
29
209
8,386
73.26%
3,061
26.74%
21,573
648
440
581
54
407
19,220
81.09%
4,481
18.91%
24,063
698
480
601
65
438
21,655
82.20%
4,689
17.80%
3,792
3,674
3,565
3.10
3.21%
3.06%
2,030
1,644
$72,445
$170,621
7,511
7,282
7,081
3.20
3.14%
2.84%
3,889
3,393
$62,306
$157,487
8,331
8,060
7,768
3.30
3.36%
3.76%
4,219
3,841
$59,798
$155,971
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
AERIAL
Rio Vista Plaza
Brawley, CA
SITE
Plaza Park
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
Rio Vista Plaza
LOCATION MAP
Brawley, CA
Brawley
Brawley
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com
Rio Vista Plaza
CONTACT INFORMATION
Brawley, CA
Duhs Commercial, Inc.
3830 Ray Street
San Diego, CA 92104
619-491-0335 (Office)
619-491-0696 (Fax)
Duhscommercial.com
CRAIG DUHS
ROB BLOOM
Partner
CA License # 01086079
619-491-0612
Craig@DuhsCommercial.com
Vice President
CA License # 01302163
619-269-6076
Rob@DuhsCommercial.com
No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
3830 Ray Street, San Diego, CA 92104 | Phone (619) 491-0335 | Fax (619) 491-0696 | www.DuhsCommercial.com