investment offering memorandum

Transcription

INVESTMENT OFFERING MEMORANDUM
A 288,029 SF Power Center in the City of Rancho Cucamonga, California
AERIAL PHOTOGRAPH
DA
YC
RE
EK
RO
AD
FOOTHILL FREEWAY 210
VICTORIA GARDENS
ET
DA
AN
IW
UE
EN
AV
FOOTHILL BOULEVARD
15
N
MAJOR TENANTS
Tenants Include Food 4 Less
Sports Chalet
Amigos Flooring Monster
PETsMART (sublease to Warehouse Furniture)
Office Depot (sublease to Living Spaces Clearance)
Apple Furniture Direct
Guitar Center
Wal-Mart (NAP)
Size
50,000
34,477
33,008
25,015
24,958
17,500
15,000
131,451
SF
SF
SF
SF
SF
SF
SF
SF
Trade Area Profile 2006 Statistics
Lease Expiration
August
January
January
September
August
June
April
2014
2010
2015
2009
2009
2009
2009
N/A
Population
Households
Average Household Income
Traffic Counts (Cars Per Day)
1
1-Mile
Radius
3-Mile
Radius
5-Mile
Radius
4,401
95,185
266,305
1,342
27,311
76,291
$69,606
$82,312
$75,667
Interstate 15
163,000
Foothill Blvd. Etiwanda Ave.
51,000
12,658
Exclusive Marketing Directors
Investment SUMMARY
Offering Price.................................................................................... Best Offer
Preston Fetrow 949.725.8538
Todd Goodman 949.725.8550
FY 2008 Projected NOI (4/1/07-3/31/08)..................................... $4,334,924
Occupancy (as of 2/1/07).........................................................................98%
todd.goodman@cbre.com
preston.fetrow@cbre.com
Phil Voorhees Kirk Brummer 949.725.8418
kirk.brummer@cbre.com
949.725.8521
phil.voorhees@cbre.com
Ownership............................................................. Fee Simple/Partial Leasehold
Building Leasable Area.................... Total – 536,517 SF / Offering – 288,029 SF
949.725.8694
gleb.lvovich@cbre.com
Gleb Lvovich Total Land Area................................. Total – 59.13 Acres / Offering 37.45 Acres
Parking................................................. 3,248 stalls (6.14 spaces per 1,000 SF)
Fax: 949.725.8545
3501 Jamboree Road • Suite 100 • Newport Beach, California 92660
CB Richard Ellis, Inc.
Investment HIGHLIGHTS
❑ Strategically located directly across Interstate 15 from Victoria Gardens,
a 1.22 million SF open-air regional center ranked as one of the Top 10
shopping centers in Southern California in annual gross sales, providing
Foothill Marketplace with an unsurpassed regional draw and customer traffic
flow all year round.
SITE PLAN
q Opportunity to enhance an investor’s overall return and maximize value
through the sale of individual parcels over time.
FOOTHILL
BOULEVARD
q Excellent access and visibility from Interstate 15 (163,000 cars per day) and
Foothill Boulevard (51,000 cars per day), two of the busiest thoroughfares
in the entire Inland Empire.
15
NAP
NAP
32
36 35
NAP
34
33
NAP
37
q The Property generates strong sales from Food 4 Less (over $490 PSF) and
from the restaurant tenants.
28
12 131416
18
19
20
6 789
5
q Food 4 Less’ plans to expand and remodel their store at this location
demonstrates their long-term commitment to Foothill Marketplace.
10
11
21
15
17
22
23
27
26
25
24
29
30
31
38
39
q Dense and affluent trade area containing over 266,305 residents with
average household incomes exceeding $75,600 within five miles of the
property.
NAP
ALWAYS LOW PRICES
NAP
q Foothill Marketplace is the low-cost alternative to Victoria Gardens with
occupancy costs substantially below this new regional center.
1
2
3
4
Land Area Subject To Ground Lease
Not A Part Of Offering
N
Delineates Individual Parcels
q Free and clear of any existing debt which allows an investor to take advantage
of currently low interest rates and implement the amount of leverage that
best fits an investor’s requirement.
2
Investment Summary
Inland Empire
Inland Empire Access (cont.)
The Inland Empire’s proximity to neighboring Los Angeles, Orange and San Diego
Counties coupled with its attractive cost of living relative to those counties makes it
one of the fastest growing metropolitan areas in the United States. Due to its position
as a premier west coast distribution center and numerous job opportunities in housing
construction, warehousing and diversified manufacturing, the Riverside-San Bernardino
area ranks second in the country (among large cities) in the “Top U.S. Cities to do
Business” (Inc. Magazine, May, 2005). Between 2000 and 2020, the Inland Empire
is expected to add another 1.5 million residents, more than the growth forecast for all
but five states in the country.
Proximity Profile
Households
2010 Projection
4,274,990
2005 Estimate
3,753,368
1990 Census
2,588,793
2000 Census
3,254,821
1990-2000 % Change
25.73%
2005 Est. Median Age
31.80
2005 Average Household Income
1,329,171
1,176,896
866,804
1,034,812
19.38%
$61,959
13.90%
100 Miles
Employees
County of San Bernardino
16,640
County of Riverside
14,889
Stater Bros. Markets
10,000
Loma Linda University Medical Center
8,390
Wal-Mart Stores, Inc.
7,550
Ontario International Airport
6,200
March Air Reserve Base
6,200
SB United School District
6,000
Employment by Industry
Transportation Profile
Industry
Direction
Cars Per Day
East-West
East-West
North-South
North-South
279,000
270,000
221,000
197,000
Pickup Points
Counties Served
MetroLink
3 rails, 16 stops
Orange, Los Angeles,
Ventura and San Diego
Airport
Passengers Per Day
San Bernardino Airport
Palm Springs Airport
20,000
10,000 Collectively
10,000 Collectively
Railway
60 Miles
Company
Inland Empire Access
SR-91
I-10
I-15
I-215
Downtown Los Angeles
Inland Empire Employment Profile
2005-2010 Projected Change
Freeway
41 Miles
Major Employers
Population
Projections
Distance
Downtown Anaheim
Downtown San Diego
Inland Empire Demographic Profile
City
Other Services
Retail Trade
Manufacturing
Health Care
Education
Construction
Transportation, Warehousing, Utilities
Percentage
15.70%
12.70%
12.40%
10.80%
9.20%
8.30%
6.20%
Current Unemployment
Area
3
Percentage
State of California
5.1%
Inland Empire
4.7%
54
58
REGIONAL MAP
Frazier Park
138
SANTA
BARBARA CO.
Lake
Casitas
Castaic
Lake
Pyramid
Lake
Fillmore
150
oleta
33
5
VENTURA CO.
Ojai
Simi
Valley
Moorpark
Ventura
Oxnard
Camarillo
1
Malibu
Point Mugu
Santa Monica
Mountain
Nat. Rec. Area
Victorville
18
Angeles
National Forest
Burbank
Santa
Monica
39
Pasadena
Culver
City
10
Redondo Beach
Rancho
Cucamonga
San
Dimas
21
Alhambra
Hollywood
66
Pomona
La
Mirada
Fullerton
c
O
ce
an
ORANGE CO.
Long
Rancho
Beach
Palos
Irvine
Verdes Huntington Beach
Aliso
Corona del Mar
Viejo
Santa Catalina
Island
Lake
MathewsLake
21
Cleveland
National
Mission Forest
Viejo
74
Indian
Wells
111
Cathedral City
Rancho Mirage
Palm Desert
San Bernardino
National Forest
J
N
Indio
La
Quinta
Murrieta
195
Temecula
Fallbrook
78
15
79
©2006 Ann Carr & Associates, Inc.
Encinitas
Escondido
Julian
Rancho Santa Fe
Rancho
Bernardo
Del Mar
67
La Jolla
Pacific Beach
79
8
78
Anza-Borrego
Desert State Park
Valley
AREA OVERVIEW AND RETAILPine
MARKET
ANALYSIS
El Cajon
San Diego
Coronado
Borrego
Springs
SAN DIEGO CO.
San
Marcos
Carlsbad
M
Salto
Se
76
4
Idyllwild
79
5
San Clemente
Island
Palm Springs
243
Hemet
Lake
Forest
Oceanside
N
10
79
Elsinore
San Juan
Dana Point
Capistrano
San Clemente
Avalon
Desert Hot
Springs
Beaumont
Corona
Laguna Beach
San
Nicolas
Island
62
60
Anaheim
39
Redlands
Riverside
91
Twentynine
Palms
Yucca
Valley
38
San Bernardino
National Forest
Fontana
Ontario
Chino
Hills
57
Big Bear Lake
Crestline
21
San Bernardino
Santa Ana
fi
247
18
Big Bear
Lake
Lake
Arrowhead
Los Angeles Torrance
ci
SAN BERNARDINO CO.
138
2
Norwalk
Pa
15
247
138
LOS ANGELES CO.
San
Fernando
Beverly
Hills
Thousand
Oaks
101
395
Palmdale
Angeles
National Forest
Santa
Clarita
Valencia
118
Port Hueneme
40
Lancaster
Los Padres
National Forest
33
Santa
Barbara
15
Barstow
14
Ventucopa
94
Chula Vista
RANCHO CUCAMONGA OVERVIEW
Employment
The City of Rancho Cucamonga is a premiere city in California’s Inland Empire - one of
the fastest growing metropolitan areas in the United States. Crowned by the beautiful
San Gabriel Mountains, Rancho Cucamonga boasts planned communities and awardwinning architecture in addition to a quality, family lifestyle. A heritage of vineyards,
ranches, orchards and wineries are reflected in historic buildings that meld with the
newer, suburban developments. In addition, The Uniform Crime Report, released
annually by the FBI, has identified Rancho Cucamonga as one of the safest cities in the
country with cities of populations over 100,000. Recently, the California Retail Survey
identified the city the as ninth fastest growing retail market in California.
Rancho Cucamonga’s prime location, outstanding quality of life and robust business
climate have made it a hot spot in California’s $1 Trillion Economy, according to the
Wall Street Journal.
Major Employers
Company
Sears Roebuck & Co.
Etiwanda Elementary School
Alta Loma Elementary Preferred Framing, Inc.
Frito Lay, Inc.
Mission Foods
C.W. Construction
Central S.D.
Chaffey Community College
SCE
Population/Demographics
The current population is approximately 167,000 and is expected to continue to grow
to a size of 197,000+ by the year 2011.
Demographic Profile – Rancho Cucamonga
Population 2011 Population
2006 Estimate
1990 Census
2000 Census
1990-2000 % Change
2006 Est. Median Age
2006 Average Household Income
Households
197,113
167,542
101,507
127,743
25.85%
32.48
$83,602
61,970
52,918
33,666
40,863
21.38%
Industry
Retail Trade
Other Services
Manufacturing
Educational Services
Health Care and Social Assistance
Finance, Insurance, and Real Estate
Transportation, Warehousing and Utilities
17.65%
Transportation
Rancho Cucamonga is conveniently located 37 miles east of the City of Los Angeles
and is serviced by three major freeways, the Metrolink San Bernardino Line, Omnitrans
Bus Service and the Ontario International Airport.
Freeway
SR-210
I-15
I-10
Airports
Percentage
13.0%
12.9%
12.9%
10.7%
10.3%
7.9%
6.6%
Victoria Gardens
Cars Per Day
Victoria Gardens is an open-air town center at the heart of a 160-acre planned
“main street” community located in Rancho Cucamonga consisting of residential,
office, retail, public plazas and civic Cultural Arts
Center. The 1,224,000 million square foot lifestyle
center anchored by Robinson’s-May, JCPenney,
Macy’s, AMC Theatre and with 150 specialty
retailers draws nearly 20 million visitors a year.
Strategically located only ½ mile north of Victoria
Gardens, Foothill Marketplace benefits from the
increased traffic and regional draw.
124,000
170,000
254,000
Railways
Provider
Metrolink – San Bernardino Line
1,250
933
850
800
600
573
550
520
475
450
Employment by Industry
Projections
2006-20011 Projected Change
Employees
Service To/From
Pomona, San Bernardino,
Claremont, & Downtown Los Angeles
Passengers Per Day
19,763
5
Employment Profile
Demographic report
Employment | Information
Total businesses
Total employed
City unemployment rate
County unemployment rate
California unemployment rate
5,065
59,150
3.6%
5.7%
6.8%
Business & Repair Services
Communications
Entertainment & Rec Services
Finance, Insurance, Real Estate
Mining
Personal Services
Public Administration
Transportation
832
3,385
2,279
6,565
5,710
53
1,600
3,800
3609
Sears Roebuck & Co.
Alta Loma Elementary
Corestaff
RPM Merit
Administration and Support
Service Personnel
Trade and Labor
Hispanic or Latino
White Non-Hispanic or Latino
5-Mile
Radius
4,401
5,771
2,549
1,547
72.64%
31.12%
4,401
47.5%
11.3%
5.6%
27.8%
7.7%
4,401
46.4%
37.1%
95,519
117,414
65,756
40,022
45.26%
22.92%
95,519
52.0%
12.1%
10.0%
19.2%
6.6%
95,519
37.6%
40.2%
267,781
317,257
201,296
142,630
33.03%
18.48%
267,781
50.8%
10.3%
7.8%
25.2%
6.1%
267,781
46.8%
35.6%
1,342
1,763
780
747
72.00%
31.42%
1,342
54.1%
44.0%
1,342
3.7%
4.3%
13.7%
13.1%
23.4%
24.2%
14.7%
2.9%
$69,606
27,428
33,690
18,868
12,719
45.37%
22.83%
27,428
69.1%
27.5%
27,428
4.6%
4.8%
6.8%
12.4%
23.6%
19.1%
21.2%
7.5%
$82,283
76,811
90,274
58,621
45,249
31.03%
17.53%
76,811
67.0%
29.7%
76,811
6.9%
7.0%
8.5%
14.3%
22.6%
16.4%
17.2%
7.0%
$75,692
Households
1,300
1,101
775
775
570
2006 Estimated Households
2011 Projected Households
2000 Census Households
1990 Census Households
Growth 2000-2006
Growth 2006-2011
2006 Tenure of Occupied Housing Units Owner Occupied Renter Occupied 2006 Est. Households by Income 32.90%
27.01%
10.86%
29.23%
Taxable | Sales
City of R.C.
Riverside County
California
Caucasian Alone
African-America Alone
Asian, Alaska Native and Pacific Islander Some Other Race Alone
Two or More Races
2006 Est. Population Hispanic or Latino
Employment | By Occupation
Executive and Professional
2006 Estimated Population
2011 Projected Population
2000 Census Population
1990 Census Population
Growth 2000-2006
Growth 2006-2011
2006 Est. Population by Race
Major | Employers
Chaffey Community College
3-Mile
Radius
Population
Employment | By Industry
Agriculture, Forestry, Fisheries
1-Mile
Radius
$327,830,000
$27,228,091,000
$111,017,316,000
Less than $15,000
$15,000 to $24,999
$25,000 to $34,999
$35,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $149,999
$150,000 or more
2006 Est. Average Income per Household 6
AREA OVERVIEW AND RETAIL MARKET ANALYSIS
Competitive Properties Map
210
210
15
Central Park
BASE LINE RD.
BASE LINE RD.
ROCHESTER AVE.
MILLIKEN AVE.
3
RANCHO
CUCAMONGA
1
HISTORIC ROUTE 66
FOOTHILL BLVD.
ARROW HWY.
ETIWANDA AVE.
ARROW HWY.
Empire Lakes
Golf Course
California Speedway
15
N
©2006 Ann Carr & Associates, Inc.
4TH ST.
SAN BERNARDINO AVE.
7
CHERRY AVE.
SPRUCE ST.
HAVEN AVE.
4
DAY CREEK BLVD.
2
Site
1
2
3
Property Name/Location
Victoria Gardens
NWC I-5 and Foothill Boulevard
Rancho Cucamonga, California
Winery Estate Marketplace
SWC Day Creek Boulevard and Base Line Road
Town Center Square at Terra Vista
NWC Spruce Avenue and Foothill Boulevard
Terra Vista Town Center
4
NEC Haven Avenue and Foothill Boulevard
Size
Avail. SF/
Ask Rent/
NNN Charge
Year Built
Occupancy
Major Tenants
1,224,000 SF
2004
100%
Robinson’s-May, JCPenney,
Macy’s, AMC Theatres
73,957 SF
2006
100%
Henry’s Market
225,923 SF
1994
98%
611,000 SF
1990
100%
Approximate
Distance
from Foothill
Marketplace
0
$4.00
$1.66 NNN
Across Freeway
0
$1.54 - $3.79
$.95 NNN
1.29 Miles
Best Buy, Barnes & Noble,
PETsMART, Office Max, Stein
Mart, Pier 1
3,500
$3.00
$0.60 NNN
1.99 Miles
Target, Mervyn’s, Michaels,
HomeGoods, Ross Dress for
Less, Big 5, Party City
0
$2.25-$3.75
$0.55 NNN
2.51 Miles
8
AREA OVERVIEW AND RETAIL MARKET ANALYSIS
Area
SF
Lease End
34,477
01/31/10
Hobby People
4,393
11/30/08
012479
Guitar Center
15,000
04/30/09
012489
Amigo’s Flooring
33,008
01/31/15
5
012689
Living Spaces
Clearance
24,958
08/31/09
6
012732
Radio Shack
2,250
01/31/11
7
012731
Salon Excellence
1,500
06/30/07
8
012730
Stuffed Bagel
1,500
09/30/10
9
012729
Star Dental Group
1,500
04/30/10
10
012739
Warehouse Furniture
25,015
09/30/09
11
012764
Engrave `N Things
2,165
07/31/10
12
012763
Available
2,000
N/A
13
012762
Foothill Optometric
Center
1,735
07/31/10
14
012761
Reliable Wireless
1,664
03/31/12
15
012760
Apple One Employment
1,600
M-T-M
16
012759
Montmartre Art Gallery
1,500
04/30/09
#
Suite
Tenant
1
012449
Sport Chalet
2
012459
3
4
17
012769
18
012799
19
Smoke Shop
1,225
10/31/07
012800
State Farm Insurance
1,209
12/31/06
20
012801
Available
1,275
N/A
21
012802
Employment Solutions
1,215
11/30/07
22
012810
Saigon Restaurant
1,600
10/31/10
23
012809
Beer Hunter Sports Pub
9,100
03/31/10
24
012842
LA Nails
1,210
03/31/07
25
012841
Mathnasium
1,270
11/30/07
26
012840
American Dream Ice
Cream
1,220
03/31/10
27
012839
Subway
1,225
02/28/11
28
012861
Sally Beauty Supply
1,687
12/31/11
29
012860
Marketplace Cleaners
1,790
12/31/06
Available
31
012879
Food 4 Less
15
NAP
NAP
32
36 35
NAP
34
33
NAP
37
28
12 131416
18
19
20
6 789
5
10
11
21
15
17
22
23
27
26
25
24
29
30
31
39
NAP
06/30/09
012859
FOOTHILL
BOULEVARD
38
17,500
30
SITE PLAN
ALWAYS LOW PRICES
NAP
1
2
3
Land Area Subject To Ground Lease
4
N
Not A Part Of Offering
Delineates Individual Parcels
Area
SF
Lease End
#
Hollywood Video
6,550
03/31/07
012819
Panda Buffet
6,600
34
012749
Arby’s
012719
012709
#
Suite
Tenant
32
012899
33
2,800
N/A
35
50,000
08/31/14
36
Suite
Tenant
37
012589
Jiffy Lube
09/30/13
38
012499
Claim Jumper
3,000
10/31/19
39
012469
Melting Pot
Wienerschnitzel
3,188
05/31/14
Golden Spoon
1,200
03/31/08
9
Total Offering SF:
Area
SF
Lease End
1,900
04/30/12
11,500
07/31/14
5,500
10/31/16
288,029
Property Description
Zoning
Foothill Marketplace is located at the southeast corner of I-15 and Foothill Boulevard
in Rancho Cucamonga, California.
Parking
RRC (Regionally Related Commercial)
Location
3,248 Stalls (6.14 stalls per 1,000 SF)
Parcels
APN
Tenants
Acres
Size in SF
0229-031-27
Hollywood Video (leasehold)
0.77
33,541
0229-031-28
Food 4 Less (leasehold)
4.78
208,217
0229-031-29
Panda Buffet
0.67
29,185
0229-031-31
Arby’s
0.56
24,394
0229-031-32
Wienerschnitzel, Golden Spoon
0.74
32,234
0229-031-33
Multi-Tenant Bldgs.-See Note 1
9.31
405,544
0229-031-37
Jiffy Lube
0.43
18,731
0229-031-39
Claim Jumper
2.16
94,090
0229-031-40
Melting Pot
1.10
47,916
0229-031-41
Multi-Tenant Bldgs.-See Note 2
7.18
312,761
0229-031-44
Driveway/Parking Lot
3.58
155,945
0229-031-47
Driveway/Parking Lot
6.17
268,765
0229-031-30 (NAP)
Taco Bell
3.94
171,626
0229-031-34 (NAP)
Chevron
1.06
46,174
0229-031-36 (NAP)
In N Out Burger
0.76
33,106
0229-031-38 (NAP)
Wal-Mart
9.77
425,581
0229-031-45 (NAP)
Panda Express
1.00
43,560
0229-031-48 (NAP)
Living Spaces
5.15
224,334
Total
59.13
2,575,704
Total- Offering
37.45
1,631,323
Street Frontage
I-15:
±1,837 FT
Foothill Boulevard: ±2,730 FT
Access
The property has three points of access off Foothill Boulevard and two points of access
off Etiwanda Avenue.
Improvements
This offering includes 288,029 SF of leasable area consisting of four anchor buildings,
one in-line shop building and one pad building.
Age
The shopping center was originally completed in 1994.
Note 1 - Tenants Include:
Living Spaces Clearance, Radio Shack, Salon Excellence, Stuffed Bagel, Star Dental Group, Warehouse
Furniture, Engeave ‘N Things, Available (1,664 SF), Apple one Employment, Montmartre Art Gallery,
Apple Furniture Direct, Smoke Shop, State Farm Insurance, Available (1,275 SF), Employment Solutions,
Saigon Restaurant, Beer Hunter Sports Pub, LA Nails, Mathnasium, American Dream Ice Cream, Subway,
Sally Beauty Supply, Marketplace Cleaners, Available (2,800 SF)
Note 2 - Tenants Include:
Sport Chalet, Hobby People, Guitar Center, Amigo’s Flooring Monster
10
PROPERTY DESCRIPTION
Rent Roll
Suite
Tenant
012879
Food 4 Less
012449
Area
SF
Lease Dates
Begin
Scheduled Minimum Rent
End
Beginning
Monthly
PSF
Annual
PSF
Market Rate
NNN - (PSF/Yr.)
Options
50,000 09/01/94
08/31/14
Current
$43,750
$0.88
$525,000
$10.50
$12.00
Four 5-Year
Opt. 1: $11.28
Opt. 2: $12.13
Opt. 3: $13.04
Opt. 4: $14.02
Sport Chalet
34,477 07/01/94
01/31/10
Current
$36,775
$1.07
$441,306
$12.80
$12.00
Three 5-Year
Opt. 1: $14.71 PSF/Year
012489
Amigo’s Flooring Monster
33,008 08/01/94
01/31/15
Current
02/01/10
$36,969
$40,655
$1.12
$1.23
$443,630
$487,858
$13.44
$14.78
$15.00
Five 5-Year
5-Year CPI (10% Max)
012739
PETsMART
(sublease to Warehouse Furniture)
25,015 06/01/94
09/30/09
Current
$25,015
$1.00
$300,180
$12.00
$18.00
Four 5-Year
Opt. 1: $13.00
Opt. 2: $14.00
Opt. 3: $15.00
Opt. 4: $16.00
012689
Office Depot
(Sublease to Living Spaces Clearance)
24,958 08/01/94
08/31/09
Current
$31,307
$1.25
$375,688
$15.05
$15.00
Four 5-Year
5-Year CPI (12% max)
012769
17,500 10/01/04
06/30/09
Current
$16,100
$0.92
$193,200
$11.04
$13.00
One 5-Year
FMR
012479
Guitar Center
15,000 02/01/99
04/30/09
Current
$16,500
$1.10
$198,000
$13.20
$15.00
Two 5-Year
012459
Hobby People
4,393 12/01/98
11/30/08
Current
01/01/07
$5,093
$5,246
$1.16
$1.19
$61,112
$62,952
$13.91
$14.33
$15.00
One 5-Year
1/1/09: $16.40 PSF/Year
1/1/11: $17.40 PSF/Year
012469
Melting Pot
5,500 11/01/06
10/31/16
Current
11/01/07
11/01/08
11/01/09
11/01/10
11/01/11
11/01/12
11/01/13
11/01/14
11/01/15
$13,750
$14,438
$15,162
$15,918
$16,715
$17,550
$18,425
$19,346
$20,313
$21,331
$2.50
$2.63
$2.76
$2.89
$3.04
$3.19
$3.35
$3.52
$3.69
$3.88
$165,000
$173,250
$181,940
$191,015
$200,585
$210,595
$221,100
$232,155
$243,760
$255,970
$30.00
$31.50
$33.08
$34.73
$36.47
$38.29
$40.20
$42.21
$44.32
$46.54
$30.00
012499
Claim Jumper
11,500 07/01/94
07/31/14
Current
08/01/09
$24,859
$28,587
$2.16
$2.49
$298,308
$343,045
$25.94
$29.83
$30.00
Two 5-Year
012589
Jiffy Lube
1,900 05/01/97
04/30/12
Current
05/01/07
$4,667
$5,227
$2.46
$2.75
$56,000
$62,719
$29.47
$33.01
$36.00
Three 5-Year
Opt. 3: $ 46.48 PSF/Year
11
PSF/Year
PSF/Year
PSF/Year
PSF/Year
PSF/Year
PSF/Year
PSF/Year
PSF/Year
Rent Roll
Suite
Tenant
012709
Golden Spoon
012719
Area
SF
Lease Dates
Begin
Market Rate
NNN - (PSF/Yr.)
End
Beginning
Monthly
PSF
Annual
PSF
Options
1,200 08/01/95
03/31/08
Current
02/01/08
$3,953
$4,348
$3.29
$3.62
$47,437
$52,176
$39.53
$43.48
$42.00
One 2-Year, One 5-Year
2/1/13: $52.62 PSF/Year
Wienerschnitzel
3,188 06/01/94
05/31/14
Current
$8,200
$2.57
$98,403
$30.87
$42.00
Three 5-Year
CPI (5% Min, 15% Max)
012729
Star Dental Group
1,500 05/01/05
04/30/10
Current
05/01/07
05/01/08
05/01/09
$4,490
$4,715
$4,950
$5,198
$2.99
$3.14
$3.30
$3.47
$53,880
$56,580
$59,400
$62,370
$35.92
$37.72
$39.60
$41.58
$24.00
None
012730
Stuffed Bagel Co.
1,500 07/01/95
09/30/10
Current
$3,248
$2.17
$38,978
$25.99
$24.00
Two 5-Year
3.5% Annual Increases
3.5% Annual Increases
012731
Salon Excellence
1,500 12/01/97
06/30/07
Current
$3,849
$2.57
$46,185
$30.79
$24.00
One 5-Year
$32.33 PSF/Year
5% Annual Increases
012732
Radio Shack
2,250 02/01/06
01/31/11
Current
$3,403
$1.51
$40,837
$18.15
$24.00
None
012749
Arby’s
3,000 11/01/99
10/31/19
Current
11/01/09
11/01/14
$4,688
$5,273
$5,933
$1.56
$1.76
$1.98
$56,250
$63,281
$71,191
$18.75
$21.09
$23.73
$42.00
Two 5-Year
Opt. 1: FMR
Opt 2: 112.5% of prior FMR
012759
1,500 05/01/04
04/30/09
Current
05/01/07
$2,400
$2,475
$1.60
$1.65
$28,800
$29,700
$19.20
$19.80
$24.00
One 5-Year
$21.00 PSF/Year
3% Annual Increases
012760
1,600 05/01/97
M-T-M
Current
$3,175
$1.98
$38,101
$23.81
$24.00
None
012761
Reliable Wireless
1,664 04/01/07
03/31/12
04/01/07
$3,467
$2.08
$41,600
04/01/08+ Annual 5% incr. every 04/01
$25.00
$24.00
One 5-Year
10% Incr. Over Prior Rent
5% Annual Increases
012762
Foothill Optometric Center
1,735 08/01/05
07/31/10
Current
08/01/07
08/01/08
08/01/09
$3,333
$3,340
$3,347
$3,354
$1.92
$1.93
$1.93
$1.93
$39,992
$40,079
$40,165
$40,252
$23.05
$23.10
$23.15
$23.20
$24.00
None
012763
Available
2,000
012764
Engrave `N Things
2,165 08/01/05
07/31/10
Current
08/01/08
08/01/09
$3,681
$4,871
$5,088
$1.70
$2.25
$2.35
$44,166
$58,455
$61,053
$20.40
$27.00
$28.20
$24.00
$24.00
None
012799
Smoke Shop
1,225 10/01/04
10/31/07
Current
11/01/06
$2,083
$2,205
$1.70
$1.80
$24,990
$26,460
$20.40
$21.60
$27.00
One 3-Year
11/1/07: $23.04 PSF/Year
11/1/08: $23.76 PSF/Year
12
TENANCY
Rent Roll
Area
SF
Lease Dates
Begin
Suite
Tenant
End
012800
1,209 12/01/00
012801
Available
1,275
012802
1,215 10/01/04
11/30/07
Current
12/01/06
012809
9,100 04/01/00
03/31/10
Current
012810
Saigon Restaurant
1,600 10/01/02
10/31/10
012819
Panda Buffet
6,600 05/01/03
012839
Subway
012840
012841
12/31/06
Beginning
Current
Monthly
PSF
Annual
PSF
$1,632
$1.35
$19,584
$16.20
Market Rate
NNN - (PSF/Yr.)
$18.00
Options
One 5-Year
FMR
$18.00
$1,580
$1,640
$1.30
$1.35
$18,954
$19,683
$15.60
$16.20
$18.00
None
$11,375
$1.25
$136,500
$15.00
$18.00
Two 5-Year
Current
11/01/07
11/01/08
11/01/09
$4,060
$4,263
$4,476
$4,700
$2.53
$2.66
$2.80
$2.94
$48,720
$51,152
$53,712
$56,400
$30.45
$31.97
$33.57
$35.25
$26.00
One 3-Year
$24.74 PSF/Year
3% Annual Increases
09/30/13
Current
10/01/06
10/01/07
10/01/08
$11,550
$12,144
$12,738
$13,398
$1.75
$1.84
$1.93
$2.03
$138,600
$145,728
$152,856
$160,776
$21.00
$22.08
$23.16
$24.36
$24.00
One 5-Year
10/1/16: $25.56 PSF/Year
1,225 03/01/06
02/28/11
Current
03/01/07
03/01/08
03/01/09
03/01/10
$2,799
$2,911
$3,028
$3,148
$3,275
$2.29
$2.38
$2.47
$2.57
$2.67
$33,590
$34,937
$36,334
$37,779
$39,298
$27.42
$28.52
$29.66
$30.84
$32.08
$27.00
None
American Dream Ice Cream
1,220 12/01/04
03/31/10
Current
04/01/07
04/01/08
04/01/09
$1,696
$1,745
$1,793
$1,842
$1.39
$1.43
$1.47
$1.51
$20,350
$20,935
$21,521
$22,106
$16.68
$17.16
$17.64
$18.12
$18.00
Two 2-Year
4/1/11: $19.08 PSF/Year
4/1/13: $20.04 PSF/Year
Mathnasium
1,270 09/01/04
11/30/07
Current
12/01/06
$1,588
$1,651
$1.25
$1.30
$19,050
$19,812
$15.00
$15.60
$18.00
One 3-Year
12/1/08: $17.40 PSF/Year
12/1/09: $18.00 PSF/Year
03/31/07
Current
$2,049
$1.69
$24,593
$20.32
$18.00
None
012842
LA Nails
1,210 04/01/97
012859
Available
2,800
012860
1,790 12/01/01
12/31/06
Current
$61,646
$34.44
$23.00
Two 5-Year
5% Annual Increases
5% Annual Increases
012861
Sally Beauty Supply
1,687 06/01/95
12/31/11
Current
$3,233
$1.92
$38,801
01/01/08+ Annual 2% incr. every 01/01
$23.00
$23.00
None
012899
Hollywood Video
6,550 04/01/97
03/31/07
Current
$22.18
$24.00
Three 5-Year
CPI (12% Max)
$21.00
13
$5,137
$12,104
$2.87
$1.85
$145,253
Rent Roll
Suite
Tenant
Area
SF
Lease Dates
Begin
End
Total Square Feet - OFFERING
288,029
012649
Living Spaces
111,325 Reimburses CAM Only
IN-NO
In-N-Out Burger
Beginning
Monthly
PSF
Annual
PSF
Market Rate
NNN - (PSF/Yr.)
Options
NOT A PART:
TACOB
Taco Bell
WALMA
Wal-Mart
14
TENANCY
Tenant Profiles
National/Regional Tenants
Tenant Name
Lessee
Wal-Mart
(Not A Part)
N/A
Food 4 Less
Food 4 Less of
California, Inc., a
California corporation
In-N-Out Burger
(Not A Part)
N/A
Taco Bell
(Not A Part)
Tricon Global
Corporation
RadioShack
RadioShack Corporation
Sport Chalet
Sport Chalet, Inc., a
Delaware corporation
Jiffy Lube
Hartland Automotive
Services, Inc., successor
in interest to OilMax
10 Minute Oil Change
#3, a California Limited
Partnership
Living Spaces Furniture
(Not a Part)
Living Spaces Furniture,
LLC, a Delaware limited
liability company
Subway
Subway Real Estate
Corp., a Delaware
corporation
Hollywood Video
Hollywood
Entertainment
Corporation, an Oregon
corporation
No. of Locations
Use
Website
Sales
Market Capitalization
www.walmartstores.com
$315.65 Billion
(2006)
$182.89 Billion
NYSE: WMT
135 Operation of a discount
warehouse style grocery store.
www.food4less.com
Parent Company:
Kroger Co:
$60.55 Billion (2006)
Kroger Co:
$16.82 Billion
NYSE: KR
200 Operation of a quick
service made-to-order
hamburger restaurant.
www.innout.com
Private
Private
6,000 Operation of a Mexican fast
food restaurant.
www.tacobell.com
$1.6 Billion (2003)
(est.)
$13.43 Billion
NYSE: YUM
6,000 Operation of a consumer
electronics store.
www.radioshack.com
$5.08 Billion
(2005)
$2.44 Billion
NYSE: RSH
www.sportschalet.com
NA
$109.6 Million
Nasdaq: SPCHB
www.jiffylube.com
Private
Private
www.mylivingspaces.com
Private
Private
www.subway.com
Private
Private
www.hollywoodvideo.com
$1.99 Billion (2006)
Subsidiary of Movie Gallery
$65.9 Million
Nasdaq: MOVI
4,800 A national discount retailer
offering a wide variety of general
merchandise in 36 departments
including a pharmacy, family
apparel, health and beauty aids,
household needs, electronics,
toys, fabrics and crafts, lawn and
garden, jewelry and shoes.
30 For display and retail sale of
sporting equipment and apparel.
380
(Largest Jiffy Lube
franchise in the
nation)
Operation of a Lube facility,
performing automotive fluid
changes, smog checks, tune-ups
and related automotive services.
2 Operation of a furniture retail store
24,394 Operation of a sandwich shop
2,000 Sale, rental, and/or licensing of
prerecorded audio and/or video
products and entertainment and
other software; the sale and rental
of video equipment and other
related items.
15
Tenant Profiles
National/Regional Tenants
Tenant Name
Lessee
Sally Beauty Supply
No. of Locations
Use
Website
Sales
Market Capitalization
Sally Beauty Supply, a
www.sallybeauty.com
Parent Company:
Alberto-Culver
Company
$3.53 Billion (2005)
Subsidiary of Alberto-Culver
Company
$4.47 Billion
NYSE: ACV
Claim Jumper
Restaurant
Claim Jumper
Restaurants, a California
Corporation
37 Operation of a sit down
family restaurant.
www.claimjumper.com
Private
Private
Hobby People
Hobby People, Inc., a
22 Operation of a Hobby People store www.hobbyshack.com
dispensing radio-controlled cars,
boats, model railroads, plastic
and die cast models, kites, model
rockets, and other related items.
Private
Private
Guitar Center Inc.
Guitar Center, Inc., a
200 For the sale, rental, and repair of
guitars, keyboards, drums, and
any related products thereto.
www.guitarcenter.com
Private
Private
Services
Howroyd Wright
Employment Agency,
Inc., a California
corporation
200 Operation of a temporary
employment agency.
www.appleone.com
Private
Private
Melting Pot
The Melting Pot
Restaurants Inc.
www.meltingpot.com
$115 MM (2004 est.)
Private
Amigo’s Flooring
Monster
Belle Marmick, Inc.
www.amigosflooring.com
Private
Private
Living Spaces Clearance
(Sublease from Office
Depot)
Office Depot, Inc.
www.mylivingspaces.com
www.officedepot.com
$14.28 Billion (2005)
(Office Depot)
$10.58 Billion
NYSE: ODP
(Office Depot)
Warehouse Furniture
Outlet (Sublease from
PETsMART)
PETsMART, Inc.
www.furnitureoutletwarehouse.com
www.petsmart.com
$3.76 Billion (2006)
(PETsMART)
$3.66 Billion
NASDAQ: PETM
(PETsMART)
2,400 Sale of beauty supply products
Internationally and related items.
85 Operation of a fondue restaurant.
9 Operation of a flooring superstore
for the sale of hardwood,
laminates, carpet and tile along
with underlayment, molding, and
adhesives.
2 Operation of a clearance
(Living Spaces) furniture store.
1,100
(Office Depot)
3 For the retail sale of furniture and
(Warehouse home accessories.
Furniture)
643
(PETsMART)
16
TENANCY
Tenant Profiles
Local Tenants
Tenant Name
Lessee
Golden Spoon
H. Wayne Dial, and
individual
Star Dental Group
No. of Locations
Use
Website
Guarantor
1 Operation of a Golden Spoon
yogurt shop.
www.goldenspoon.com
None
Khasha Etemadi
and Azedeh Paydar,
individual, jointly and
severally
2 Operation of a dentist office.
None
None
Stuffed Bagel Co, Inc.
Stuffed Bagel Company,
Inc., a California
corporation
1 Operation of a bagel bakery
serving sandwiches and
related items.
None
Stuart Rubin and
Louis Rubin
Wienerschnitzel
Galardi Group Realty
Corp,, a California
corporation
1 Operation of a
Wienerschnitzel restaurant.
www.wienerschnitzel.com
None
Salon Excellence
Deanna Epstein and
Patrick J. Ochsner and
Maria E. Ochsner, as
individuals
1 Operation of a hair and nail
care salon.
None
None
Arby’s
Amsah, Inc., a
1 Operation of an Arby’s/T.J.
Cinnamons restaurant.
www.arbys.com
Gurgen “Jerry”
Mkrtchyan, an
unmarried man
1 For the retail sale of original and
reproduced paintings, mirrors and
custom frames, catalog sales and
decorating consulting, delivery
and installation services.
www.artyoulove.net
None
Foothill Optometric Cen.
Justin T. Abo and Larissa
A. Murakami-Abo,
husband and wife,
jointly and severally
1 Operation of an optometrist office.
None
None
Engrave `N Things
Daniel Keshishian, a
married man both jointly
and severally
1 Operation of store selling
engraving and engraved
merchandise.
www.engraventhings.com
Daniel Keshishian
Pacific Century
Furniture, Inc.
1 For the display and retail sale of
furniture and home accessories.
None
Yihua International
Group, a California
corporation.
Smokers Shop
Raed Farraj, an
individual
1 For the retail sale of cigarettes,
cigars, chewing tobacco and
related items.
None
None
Employment Solutions,
Inc., a California
corporation
2 For the use as a temporary
employment agency office.
None
Dr. Sam J. Poidmore
17
Bindu Joshi and Dilip
Joshi
Tenant Profiles
Local Tenants
Tenant Name
Lessee
BOBRAY Restaurants,
Inc., a California
corporation
Saigon Restaurant
No. of Locations
Use
Website
Guarantor
1 Operation of a sports pub
and grill.
www.thebeerhunter.com
W. Ray Laird, III
Binh Thach, an
individual and Sarang
Thach, an individual
1 Operation of an Asian fast food
restaurant.
None
Janet Im and Peter Sok
Panda Buffet
Wei Xue Chen and Li
Juan Liu, as husband
and wife, jointly and
severally
1 For the preparation and service of
Japanese, Asian and Italian food.
None
None
American Dream Ice
Cream
Stephen G. James
and Cynthia James, a
married couple
1 For the retail sale of ice cream and
ice cream related products.
None
None
Mathnasium
Kathryn Purkey, a
married woman
2 For the use as a tutoring facility.
www.mathnasium.com
None
LA Nails
Nhan Pham and Cecilia
Pham, individuals
1 Operation of a nail salon
None
None
Nabil R. Saad and
Mona Saad
3 Operation of a dry cleaners,
providing laundry and alterations
services.
None
None
Michael Gaumer, an
individual and State
Farm Mutual Automobile
Insurance Company,
jointly and severally
1 Operation of an insurance
brokerage involving sales and
services of financial and insurance
products.
www.statefarm.com
None
18
TENANCY
financial assumptions
SUMMARY OF FINANCIAL ASSUMPTIONS
GLOBAL
GLOBAL
VACANT
VACANT SPACE
SPACE LEASING
LEASING
Analysis
Analysis Period
Period
Commencement Date
Date
Commencement
End
End Date
Date
Term
Term
April, 2007
2007
April,
March
March 31,
31, 2017
2017
10 Years
Years
10
Area
Area Measures
Measures
Building
Building Square
Square Feet
Feet (NRSF)
(NRSF)
Growth
Growth Rates
Rates
Consumer
Consumer Price
Price Index
Index (CPI)
(CPI)
Other
Other Income
Income Growth
Growth Rate
Rate
Operating Expenses
Expenses
Operating
Property
Property Taxes
Taxes
Market Rent
Rent Growth
Growth
Market
2008
2013
2008 -- 3.00%
3.00%
2013
2009 -- 3.00%
3.00%
2014
2009
2014
2010
2015
2010 -- 3.00%
3.00%
2015
2011
2016
2011 -- 3.00%
3.00%
2016
2012
3.00%
2017+
2012 - 3.00% 2017+
Occupancy
Occupancy and
and Absorption
Absorption
Currently Vacant
Vacant as
as of
of 2/1/07
2/1/07
Currently
Percentage
Percentage Vacant
Vacant at
at 2/1/07
2/1/07
SECOND
SECOND GENERATION
GENERATION LEASING
LEASING
6,075 SF
SF
6,075
2.11%
2.11%
288,029
288,029 SF
SF [2]
[2]
3.00%
3.00%
1.50%
1.50%
3.00%
3.00%
2.00%
2.00%
------
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
General
General Vacancy
Vacancy Loss
Loss
Capital
Capital Reserves
Reserves (CY
(CY 2007
2007 Value)
Value)
Financial
Financial Terms
Terms
2007
2007 Annual
Annual Market
Market Rent
Rent
Rent
Rent Adjustment
Adjustment
Lease Term
Term
Lease
Expense
Expense Recovery
Recovery Type
Type
Rent Abatements
Abatements
Rent
Tenant
Tenant Improvements
Improvements ($/NRSF)
($/NRSF)
Commissions
Commissions
See
See Rent
Rent Roll
Roll
3.00%
3.00% Annually
Annually
5 Years
Years
5
NNN
NNN
None
None
$7.00
$7.00 PSF
PSF
4.00%
4.00%
EXPENSES
EXPENSES
Operating
Operating Expense
Expense Source
Source
3.00%
3.00% [1]
[1]
$0.10
$0.10 PSF
PSF
2007
2007 Budget
Budget
Management
Management Fee
Fee (%
(% of
of EGR)
EGR)
3.00%
3.00%
Property
Property Taxes
Taxes Reassessed
Reassessed
No
No
Retention
Retention Ratio
Ratio
Financial
Financial Terms
Terms
2007 Annual
Annual Market
Market Rent
Rent
2007
Rent
Rent Adjustment
Adjustment
5
5&
&7
7 Year
Year
10
Year
10 Year
Lease
Lease Term
Term
Expense
Expense Recovery
Recovery Type
Type
Rent
Rent Abatements
Abatements
New
New
Renewal
Renewal
Weighted Average
Average
Weighted
Tenanting Costs
Costs
Tenanting
Tenant
Tenant Improvements
Improvements ($/NRSF)
($/NRSF)
New
New
Renewal
Renewal
Weighted
Weighted Average
Average
Commissions
Commissions
New
New
Renewal
Renewal
Weighted
Weighted Average
Average
Downtime
Downtime
New
New
75%
75%
See Rent
Rent Roll
Roll
See
3.00%
3.00% Annually
Annually
12.5%
12.5% Inc
Inc every
every 5
5 Yrs
Yrs
5,
5, 7,
7, &
& 10
10 Years
Years
NNN
NNN
None
None
None
None
N/A
N/A
$7.00
$7.00
$0.00
$0.00
$1.75
$1.75
4.00%
4.00%
2.00%
2.00%
2.50%
2.50%
6
6 to
to 12
12 Months
Months
NOTES
Notes:
Notes:
All market
market rent
rent rates
rates are
are stated
stated on
on calendar-year
calendar-year basis.
basis.
All
[1]
[1] General
General Vacancy
Vacancy Loss
Loss factor
factor includes
includes losses
losses attributable
attributable to
to projected
projected lease-up,
lease-up, rollover
rollover downtime,
downtime, and
and fixturing
fixturing downtime.
downtime.
The
The following
following tenants
tenants are
are excluded
excluded from
from this
this loss
loss factor
factor for
for current
current lease
lease terms
terms only:
only: Amigo's
Amigo's Flooring
Flooring Monster,
Monster, Apple
Apple One
One Furniture
Furniture Direct,
Direct, Food
Food 4
4 Less,
Less, Golden
Golden Spoon,
Spoon, Guitar
Guitar Center,
Center, Hollywood
Hollywood Video,
Video, In-N-Out
In-N-Out
Burger,
Jiffy
Lube,
Living
Spaces,
Melting
Po
Burger, Jiffy Lube, Living Spaces, Melting Po
19
PSF
PSF
PSF
PSF
PSF
PSF
Cash Flow
Calendar Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
REVENUES
Scheduled Base Rent
Gross Potential Rent
$4,570,675 $4,617,230 $4,787,205 $4,976,457 $5,023,630 $5,074,855 $5,115,809 $5,380,196 $5,650,635 $5,709,963 Absorption and Turnover Vacancy
(3,645)
(10,331)
(60,339)
(54,213)
(10,380)
(57,209)
(25,090)
(39,326)
(66,196)
(23,155)
Total Scheduled Base Rent
4,567,030 4,606,899 4,726,866 4,922,244 5,013,250 5,017,646 5,090,719 5,340,870 5,584,439 5,686,808 Expense Reimbursements
1,816,043 1,857,846 1,867,675 1,924,636 1,988,963 2,019,675 2,077,364 2,133,874 2,180,353 2,245,067 Other Income
1,594 1,618 1,642 1,667 1,692 1,717 1,743 1,769 1,796 1,823 Retail Sales Percent Revenue
127,455 139,878 122,841 120,981 132,392 146,655 161,346 142,131 140,542 156,596 TOTAL GROSS REVENUE
6,512,122 6,606,241 6,719,024 6,969,528 7,136,297 7,185,693 7,331,172 7,618,644 7,907,130 8,090,294 General Vacancy Loss
(51,710)
(46,654)
(58,908)
(16,482)
(62,708)
(16,577)
(50,491)
(59,033)
(45,821)
(91,472)
EFFECTIVE GROSS REVENUE
6,460,412 6,559,587 6,660,116 6,953,046 7,073,589 7,169,116 7,280,681 7,559,611 7,861,309 7,998,822 EXPENSES
CAM
(534,850)
(550,895)
(567,422)
(584,445)
(601,978)
(620,037)
(638,638)
(657,797)
(677,531)
(697,857)
Management Fee
(193,812)
(196,788)
(199,803)
(208,591)
(212,208)
(215,073)
(218,420)
(226,788)
(235,839)
(239,965)
Insurance
(47,605)
(49,034)
(50,505)
(52,020)
(53,580)
(55,188)
(56,843)
(58,549)
(60,305)
(62,114)
Property Tax
(1,079,221) (1,100,806) (1,122,822) (1,145,278)
(1,168,184) (1,191,547)
(1,215,378) (1,239,686) (1,264,480) (1,289,769)
Ground Rent
(270,000)
(305,000)
(305,000)
(305,000)
(305,000)
(305,000)
(341,600)
(341,600)
(341,600)
(341,600)
TOTAL EXPENSES
(2,125,488) (2,202,523) (2,245,552) (2,295,334)
(2,340,950) (2,386,845)
(2,470,879) (2,524,420) (2,579,755) (2,631,305)
NET OPERATING INCOME
4,334,924 4,357,064 4,414,564 4,657,712 4,732,639 4,782,271 4,809,802 5,035,191 5,281,554 5,367,517 CAPITAL COSTS
Tenant Improvements
(65,644)
(5,065)
(32,490)
(18,158)
(10,168)
(24,827)
(17,590)
(12,715)
(24,218)
(10,835)
Leasing Commissions
(45,011)
(8,228)
(64,110)
(32,942)
(18,804)
(42,193)
(23,447)
(31,319)
(48,872)
(19,039)
Capital Reserves
(28,803)
(29,667)
(30,557)
(31,474)
(32,418)
(33,390)
(34,392)
(35,424)
(36,487)
(37,581)
TOTAL CAPITAL COSTS
(139,458)
(42,960)
(127,157)
(82,574)
(61,390)
(100,410)
(75,429)
(79,458)
(109,577)
(67,455)
OPERATING CASH FLOW
$4,195,466 $4,314,104 $4,287,407 $4,575,138 $4,671,249 $4,681,861 $4,734,373 $4,955,733 $5,171,977 $5,300,062 $5,818,209
(81,086)
5,737,123
2,284,183
1,850
173,131
8,196,287
(38,457)
8,157,830
(718,793)
(244,735)
(63,978)
(1,315,565)
(341,600)
(2,684,671)
5,473,159
(37,219)
(68,037)
(38,709)
(143,965)
$5,329,194
20
FINANCIAL ANALYSIS
Tenant Sales Analysis
Tenant Sales
Suite
Tenant
Size (SF)
2005
PSF
Percentage
Rate
Sales
Breakpoint
REPORTING TENANTS
12879
Food 4 Less
42,120
$24,693,681
-
$494
1.25%
$23,081,760
12449
Sports Chalet
34,477
$ 7,800,766
-
$226
4.00%
$11,032,644
12489
Amigo’s Flooring Monster
33,008
$17,725,956
-
$537
None
None
12499
Claim Jumper
11,500
$ 7,963,405
-
$693
5.00%
Natural
12689
Office Depot
(Sublease to Living Spaces Clearance)
24,958
$ 7,693,054
-
$308
1.00%
$20,000,004
12709
Golden Spoon
1,200
$
313,464
-
$261
6.00%
$790,620
12732
Radio Shack
2,250
$
427,118
-
$190
3.00%
$1,361,256
12749
Arby’s
3,000
$
780,870
-
$260
7.50%
$1,216,668
12839
Subway
1,225
$
516,999
-
$422
7.00%
$399,996
12861
Sally Beauty Supply
1,687
$
663,463
-
$393
4.00%
$900,864
GROUND LEASE SUMMARY
Date of Lease:
Ground Lessor (“Landlord”):
Ground Leased Land Area:
Ground Lease Term:
Lease Commencement:
Lease Termination:
Current Annual Base Ground Rent:
Base Ground Rent Adjustments:
May 1, 2007
May 1, 2012
May 1, 2017
May 1, 2022
May 1, 2027
May 1, 2032
May 1, 2037
Contingent Rental Increases:
May 1, 1992
Frederickson Enterprises, Inc.
Approximately 5.54 Acres (Portion of land underneath Hollywood Video and Food 4 Less’ Buildings and Parking Area – see site plan for
more detail)
50 Years (35.6 Years Remaining)
May 1, 1992
April 30, 2042
$270,000 per year - NNN
$305,000 per year - NNN
FMR (12% min increase over previous 5-year period)
12% increase over previous rent
If any ground sublessees agree to pay ground lessee as sublease rent a rental amount greater than 12% per 5-year periods, then the amount
by which such increases exceed the 12% base (“Marginal Rate of Increase”) shall be used to determine the “Contingent Rental Increases.”
Therefore, the Contingent Rental Increases are determined by multiplying the Marginal Rate of Increase by the subtenants GLA and dividing
that amount by the total GLA of the shopping center. The payment (if any) is to be submitted with the quarterly ground lease installment.
21
Exclusive Marketing Director
Confidentiality Agreement
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility
for its correctness.
Todd Goodman
Tel: 949.725.8550
todd.goodman@cbre.com
Preston Fetrow
Tel: 949.725.8538
preston.fetrow@cbre.com
Phil Voorhees
Tel: 949.725.8521
phil.voorhees@cbre.com
Kirk Brummer
Tel: 949.725.8418
kirk.brummer@cbre.com
Gleb Lvovich
Tel: 949.725.8694
gleb.lvovich@cbre.com
For “real time” loan quotes
based upon preliminary
discussions with major lenders,
please contact:
Brian Corrigan
Tel: 949.509.2131
brian.corrigan@cbre.com
CB Richard Ellis, Inc.
3501 Jamboree Road • Suite 100
Newport Beach, CA 92660-2940
Fax: 949.725.8545
www.cbre.com
Seller herby advises receiving party that seller is not currently the owner of the property, and receiving party expressly
acknowledges and understands that any transaction contemplated herein is expressly subject to and conditioned upon seller
becoming the owner of the property pursuant to successful completion of the pending merger between seller and Pan Pacific
Retail Properties, Inc.
Seller has retained CB Richard Ellis, Inc. (“CBRE”) as exclusive advisor for the sale of Foothill Marketplace in Rancho
Cucamonga, California (“Property”).
This Investment Offering Memorandum has been prepared by CBRE for use by a limited number of parties and does not purport
to provide a necessarily accurate summary of the Property or any of the documents related thereto, nor does it purport to be
all-inclusive or to contain all of the information which prospective investors may need or desire. All projections have been developed by
Seller, CBRE and designated sources and are based upon assumptions relating to the general economy, competition and other factors
beyond the control of Seller and therefore are subject to variation. No representation is made by Seller or CBRE as to the accuracy or
completeness of the information contained herein and nothing contained herein is, or shall be relied on as, a promise or representation
as to the future performance of the Property. Although the information contained herein is believed to be correct, Seller and its employees,
disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such
information. Further, CBRE, Seller and its employees, disclaim any and all liability for representations and warranties, expressed and implied,
contained in, or for omission from, the Investment Offering Memorandum, or any other written or oral communication transmitted or made
available to the recipient. The Investment Offering Memorandum does not constitute a representation that the business or affairs of the
Property or Seller since the date of preparation of the Investment Offering Memorandum have remained the same. Analysis and verification
of the information contained in the Investment Offering Memorandum is solely the responsibility of the prospective purchaser.
Seller and CBRE each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding
the Property and/or terminate discussions with any entity at any time with or without notice. Seller shall have no legal commitment or
obligations to any entity reviewing the Investment Offering Memorandum, or making an offer to purchase the Property, unless and until
such offer is approved by Seller, a written agreement for the purchase of the Property has been fully executed, delivered and approved
by Seller and its legal counsel and any conditions to Seller’s obligations thereunder have been satisfied or waived.
This Investment Offering Memorandum and the contents, except such information which is a matter of public record or is provided
in sources available to the public, are of a confidential nature. By accepting the Investment Offering Memorandum, you agree
that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose
the Investment Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you
if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement
of confidentiality) without the prior written authorization of Seller or CBRE and that you will not use the Investment Offering
Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or CBRE. Design and printing
by Ann Carr & Associates, Inc. 714.740.0687.
22
FINANCIAL ANALYSIS

investment offering memorandum

Transcription

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