VALVOLINE INSTANT OIL CHANGE

Transcription

VALVOLINE INSTANT OIL CHANGE
6501 White Lane
Bakersfield, CA 93309
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not
and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes
no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased 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. Marcus & Millichap 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 net leased 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 net leased 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 Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of
claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
Presented by:
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CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party
receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap.
This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level
of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has
not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected
financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or
business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this
Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the
information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation
whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the
information set forth herein.
NON-ENDORSEMENT NOTICE
Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee
identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or
endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included
for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
Presented by:
3
presented by
Presented by:
Mike James
Associate Vice President
Investments
p: 818.212.2755
f: 818.212.2710
mike.james@marcusmillichap.com
License: CA 01869890
4
Valvoline
Investment Overview
Investment Highlights:
• Absolute NNN Investment Opportunity with 11 Years Remaining
on the Base Term with 15% Rental Bumps Every Five Years
• Dense Infill Location with a Population of Over 464,000 in
Bakersfield, CA
• High Visibility Location with Average Daily Traffic Counts
Exceeding 68,000 Vehicles per Day
• Directly Across the Street From a FoodMaxx Anchored Shopping
Center
• Tenant and its Affiliates/Parent Company is the Largest Valvoline
Instant Oil Change Operator in the USA - 197 Units
• Surrounding Retailers in the Immediate Area Include Sonic
Drive-In, Pizza Hut, Wienerschnitzel, Arco Gas Station, Taco Bell,
Albertsons, Rite Aid, McDonald’s and KFC
Marcus & Millichap is very pleased to present this free-standing, 3,564 square
foot Valvoline Instant Oil Change, located in Bakersfield, California. This offering
consists of a single tenant, absolute NNN Leased Investment with Henley Enterprises as the tenant. There are 11 years remaining on the current lease term,
providing security and stability for the investor. High fixed rent increases of 15%
every 5 years increases buyer’s return on investment and hedges against inflation.
The property is located on the signalized hard corner of 2-major arterial streets
with over 50,000 cars per day. The Tenant is responsible for all expenses associated
with the Property including property taxes, insurance, CAM expenses, plus building maintenance and repairs. Subject property is located in a densely populated
(over 130,000 people within 3 miles) master planned trade area, which provides
for a secure investment and intrinsic real estate.
Henley Enterprises, headquartered in the Boston area, is regarded as a premier
national quick lube operator and consistently ranks among the top performers in
the Valvoline Instant Oil Change franchise system. In 2004, National Oil & Lube
News recognized CEO and co-founder Don Smith as its “Operator of the Year.” In
March 2012, Henley added 72 Southern California locations through the largest
single acquisition in industry history. Consistent growth has been a staple for the
Henley companies, which formed to operate one of the first franchised Valvoline
Instant Oil Change facilities in Somerville, MA in 1989. Now a coast-to-coast operation, Henley employs more than 1,800 associates in 12 states.
Bakersfield is a city near the southern end of the San Joaquin Valley in Kern County, California. It is roughly equidistant between Fresno and Los Angeles, which
are 110 miles to the north and south, respectively. In the 2010 census, the city’s
population was 347,483, making it the 9th largest city in California and the 52nd
largest city in the United States. The city is also the county seat for Kern County,
which encompasses the entire MSA and is the third largest county in California
by area. The total Bakersfield inner urban area, which includes East Bakersfield
and Rosedale, has a population of about 464,000.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
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Valvoline
Pricing and Financial Analysis
Offering Summary
Purchase Price
CAP Rate
Price/SF
GLA
Lot Size
Year Built
$3,174,000
6.00%
$890.57
3,564 SF
5,617 SF
1990
Vital Data
Net Operating Income
Lease Type
Lease Term
Lease Commencement
Lease Expiration
Lease Term Remaining
Increases
Options
$190,440*
Triple-Net (NNN)
20 Years
1/1/2006
1/1/2026
11 Years
15% Every Five Years
Two Five-Year and One Four-Year
Tenant
Tenant Trade Name
Ownership
Lease Guarantor
Headquarters
Years in the Business
Henley Enterprises, Inc.
Private
Franchisee
Newton Highlands, MA
28 Years
*Pricing is based on an increase scheduled for 2016, seller shall credit
the difference in rent.
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Valvoline
Tenant Overview
Henley Enterprises, headquartered in the Boston area, is regarded as a premier national quick lube operator and consistently ranks
among the top performers in the Valvoline Instant Oil Change franchise system. In 2004, National Oil & Lube News recognized CEO and
co-founder Don Smith as its “Operator of the Year.” In March 2012, Henley added 72 Southern California locations through the largest single acquisition in industry history. Consistent growth has been a staple for the Henley companies, which formed to operate one of the first
franchised Valvoline Instant Oil Change facilities in Somerville, MA in 1989. Now a coast-to-coast operation, Henley employs more than
1,800 associates in 12 states.
Company Timeline:
1987 - Henley Enterprises, Inc founded.
1989 - Opened first franchised Valvoline Instant Oil Change facility in Somerville, MA.
2006 - Formed Southeast regional operating affiliate Sunshine Lubes. Henley operated 59 VIOC franchise locations by the end of 2006.
2009 - Formed Midwest regional operating affiliate Henley Bluewater, Inc. Henley operated 125 VIOC franchise locations by the end of
2009.
2011 - Formed West Coast regional operating affiliate Henley Pacific LA. As of March 2012, the Henley Companies operate 196 VIOC franchise locations.
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Valvoline
Retail Aerial
11
Valvoline
Retail Aerial
12
Valvoline
Retail Aerial
13
Valvoline
Location Map
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Valvoline
Recent Sales Comparables
Property: 311 Summerhill Drive, Lake Elsinore, CA
Tenant:
Jiffy Lube
Property: 1140 East Colorado Street, Glendale, CA
Tenant:
Valvoline
In Escrow
Close of Escrow:
12/18/2014
Close of Escrow:
Sale Price:
$1,540,000
Sale Price:
$2,650,000
CAP Rate:
5.51%
CAP Rate:
5.99%
Year Built:
N/A
Year Built:
2002
*Projected to Close on 4/3/2015
Property: 3504 Central Avenue, Riverside, CA
Tenant:
Valvoline
Property: 12972 Newport Avenue, Tustin, CA
Tenant:
Valvoline
Close of Escrow:
On Market
Close of Escrow:
On Market
Sale Price:
$2,872,000
Sale Price:
$3,500,000
CAP Rate:
5.60%
CAP Rate:
4.50%
Year Built:
2004
Year Built:
1956
15
Valvoline
Area Overview
About
Bakersfield is a bustling city at the southern end of the San
Joaquin Valley. It lies between the cities of Los Angeles and
Fresno. It is a city with a large population and a productive
economy – the focal point of Kern County.
Bakersfield is the 9th largest city in California. Its population
is approximately 360,000, and growing. Between 1980 and
2010, Bakersfield’s population grew by nearly 150,000 people. According to the most recent census, the city’s population
density was about 2,400 people per square mile - comparable to the population density in
Los Angeles which is approximately 2,750 people per square mile. Bakersfield is intersected
by three major freeways and two Class-1 railroads. The city maintains an expansive public
bus service and the Meadows Field Airport. It is home to two public universities, a diverse
group of businesses, and a wide variety of entertainment options.
Weather
The climate in Bakersfield is excellent nearly all year. The city experiences more clear days
than the majority of US cities. It enjoys long-lasting, mild autumns and warm springs. Bakersfield summers are long and sunny.
Economy
Bakersfield’s economy is large and diverse. Major industries include agriculture, energy extraction, petroleum refining, manufacturing, distribution, and food processing. Bakersfield’s
county (Kern County) generates 76 percent of the state’s oil supply. It ranks third among all
cities in agricultural production.
Kern County’s lack of utility and inventory taxes contribute to a business-friendly environment in Bakersfield. Notably, Bakersfield is the largest city in California to hold its sales tax
at the state minimum (7.25 percent). Additionally, a number of companies have migrated
to Bakersfield to take advantage of its large consumer base and proximity to the cities of Los
Angeles and Oakland.
Entertainment
Bakersfield is home to award-winning museums exhibits, the Golden West Casino, and the
Bakersfield Zoo. It also supports three minor league professional sports teams and several
strong college athletic programs. Residents of Bakersfield enjoy shopping at the city’s downtown antique district, the Valley Plaza Mall and the Marketplace. The city’s Northwest Promenade houses a host of national retailers. Bakersfield also has five multi-screen theaters. The
historic Fox Theater is one of the city’s greatest attractions. Affordable green fees and spectacular scenery are offered at all of Bakersfield’s eight public golf courses.
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Valvoline
Demographic Report
Population
1-Mile
3-Miles
5-Miles
Population
1-Mile
3-Miles
5-Miles
2000 Population
15,304
106,377
187,226
$0 - $14,999
9.1%
10.7%
11.9%
2010 Population
14,769
126,713
244,571
$15,000 - $24,999
8.9%
10.3%
11.4%
2013 Population
15,099
130,300
252,228
$25,000 - $34,999
8.8%
9.3%
10.2%
2018 Population
15,349
138,579
273,961
$35,000 - $49,999
17.1%
15.5%
16.3%
1-Mile
3-Miles
5-Miles
$50,000 - $74,999
24.5%
21.4%
20.1%
2000 Households
5,105
37,916
63,758
$75,000 - $99,999
14.8%
13.2%
12.3%
2010 Households
4,902
42,533
77,687
$100,000 - $124,999
8.1%
8.1%
7.2%
2013 Households
5,052
44,179
80,859
$125,000 - $149,999
4.6%
4.4%
4.0%
2018 Households
5,154
46,669
87,283
$150,000 - $199,999
2.3%
3.4%
3.3%
2.91
2.94
3.11
$200,000 - $249,999
0.9%
1.5%
1.3%
7,754
37,651
76,675
$250,000 +
1.0%
2.2%
2.0%
2000 Owner Occupied Housing Units
59.99%
58.43%
57.65%
2012 Median Household Income
$56,127
$54,438
$50,206
2000 Renter Occupied Housing Units
36.96%
37.20%
36.89%
2012 Per Capita Income
$22,429
$24,969
$22,344
3.05%
4.37%
5.46%
2012 Average Household Income
$66,873
$73,329
$69,402
52.52%
56.56%
56.50%
47.48%
43.44%
43.50%
2.56%
4.01%
4.60%
52.20%
57.23%
57.32%
47.80%
42.77%
42.68%
2.49%
3.99%
4.50%
Household
2013 Average Household Size
2013 Daytime Population
2000 Vacant
2013 Vacant
2018 Vacant
Traffic Counts
White Lane
50,000 Vehicles per Day
Ashe Road
18,000 Vehicles per Day
17
Valvoline
Demographic Report
Population:
In 2014, the population in your selected geography is 252,228. The population has changed by 34.71% since 2000. It is estimated that the population
in your area will be 273,961 five years from now, which represents a change
of 8.61% from the current year. The current population is 49.13% male
and 50.86% female. The median age of the population in your area is 30.3,
compare this to the Entire US average which is 37.3. The population density
in your area is 3,210.10 people per square mile.
Households:
Race & Ethnicity:
The current year racial makeup of your selected area is as follows: 53.39%
White, 8.52% Black, 0.12% Native American and 6.69% Asian/Pacific
Islander. Compare these to Entire US% averages which are: 71.60% White,
12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.
People of Hispanic origin are counted independently of race. People of Hispanic origin make up 50.39% of the current year population in your selected
area. Compare this to the Entire US% average of 17.13%.
There are currently 80,859 households in your selected geography. The number of households has changed by 26.82% since 2000. It is estimated that the
number of households in your area will be 87,282 five years from now, which
represents a change of 7.94% from the current year. The average household
size in your area is 3.10 persons.
Housing:
Income:
In 2014, there are 76,675 employees in your selected area, this is also known
as the daytime population. The 2000 Census revealed that 57.10% of employees are employed in white-collar occupations in this geography, and
42.86% are employed in blue-collar occupations. In 2014, unemployment
in this area is 12.27%. In 2000, the average time traveled to work was 23.3
minutes.
In 2014, the median household income for your selected geography is
$50,206, compare this to the $Entire US average which is currently $51,972.
The median household income for your area has changed by 26.90% since
2000. It is estimated that the median household income in your area will be
$58,910 five years from now, which represents a change of 17.33% from the
current year.
In 2000, there were 38,879 owner occupied housing units in your area and
there were 24,878 renter occupied housing units in your area. The median
rent at the time was $488.
Employment:
The current year per capita income in your area is $22,343, compare this to
the $Entire US average, which is $28,599. The current year average household income in your area is $69,401, compare this to the $Entire US average
which is $74,533.
18
presented by
Presented by:
Mike James
Associate Vice President
Investments
p: 818.212.2755
f: 818.212.2710
mike.james@marcusmillichap.com
License: CA 01869890
20

VALVOLINE INSTANT OIL CHANGE

Transcription

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