Brunswick Retail Center Foothill Boulevard, Fontana, California, 92335

Transcription

1 FOR SALE Brunswick Retail Center Foothill Boulevard, Fontana, California, $2,835,000 Exclusively Represented by: Brad Umansky President office cell BRE # Frank Vora Investment Sales Specialist office cell Frank@ProgressiveREP.com BRE # Greg Bedell Investment Sales Associate office cell Greg@ProgressiveREP.com BRE # Haven Ave, Suite 110 Rancho Cucamonga, CA 91730

2 HIGH TRAFFIC LOCATION WITH GREAT VISIBILITY 7,194 SF multi-tenant retail center located across from an established Walmart center that includes: Sally Beauty Supply, Radioshack & Taco Bell; Subject property is located along Route 66/Foothill Blvd. (32,700 vehicles per day) approximately one block east of Sierra Blvd. (25,300 vehicles per day); Unobstructed street visibility with approximately 200 feet of frontage along Foothill Blvd., which provides billboard advertising for each tenant; Highly visible monument sign on Foothill Blvd. creating strong tenant identity. DIVERSE INCOME STREAM A diverse mix of five tenants offers investors a hedge against vacancy; Tenant mix ideally suited for the trade area, creating long term stability. STRONG INVESTMENT FUNDAMENTALS Full occupancy offers investors a secure, stable investment; 57% of the base rental income is paid by the center s most tenured tenants whom have occupied the property since its development; Triple net leases pass expense costs through to tenants, offering investors protection from an increase in expenses. NEWER, HIGH QUALITY CONSTRUCTION Built in 2008, the center s high quality construction and well maintained landscaping presents investors with a lower probability of deferred maintenance. Ample parking with approx. 65 parking spaces including shared parking with the established Brunswick Bowling Center. STRONG DENSITY & HIGH AVERAGE INCOMES Population in excess of 357,000 within 5-mile radius; Average incomes of $70,000 within 5-mile radius. OFFERED FREE AND CLEAR AT RECORD LOW INTEREST RATES With new debt, investors have the opportunity to take advantage of record low interest rates and favorable loan terms which can be used to create strong cash-on-cash returns and attractive total returns. Financial Summary Price: $2,835,000 Cap Rate: 7.0% Occupancy: 100% Net Rentable Area: 7,194 SF Year Built: 2008

3 PROPERTY PICTURES Brunswick Bowling Lanes (NAP)

4 LOCATOR MAP Pasadena Rancho Cucamonga Fontana Los Angeles Riverside Anaheim Corona 210 Long Beach Foothill Blvd 32,700 CPD Sierra Avenue Foothill Boulevard, Fontana, CA CLICK HERE FOR A GOOGLE MAP

5 17218 Foothill Boulevard, Fontana, CA TRADE AREA MAP

6 FINANCIAL SUMMARY OPERATING CASH FLOW FINANCIAL SUMMARY REVENUE Purchase Price: Price: $2,835,000 Base Base Annual Annual Rent: Rent: $198,420 Cap Cap Rate: Rate: 7.00% 7.00% Expense Reimbursements: $67,669 Price/SF: $394 $394 Effective Gross Gross Income: $266,089 Loan Loan Assumptions OPERATING EXPENSES LTV: LTV: 65% 65% Property Taxes Taxes (adjusted (adjusted for sale): for sale): $33,019 Down Down Payment: $992,250 Insurance: $1,552 $1,552 Loan Loan Amount: $1,842,750 Utilities: $12,098 Interest Interest Rate: Rate: 4.25% 4.25% Repairs & Maintenance: & $15,000 Amortization: Management Fee: Fee: $6,000 $6,000 Term: Term: 5 5 Total Total Expenses: $67,669 Loan Loan Payment: $108,783 NET NET OPERATING INCOME: $198,420 Leveraged Cash Cash Flow: Flow: $89,637 Cash Cash on Cash on Cash Return: Return: 9.03% 9.03% Principal Principal Reduction (Yr 1): (Yr 1): $31,066 Total Total Return Return (Yr 1): (Yr 1): 12.16% 12.16%

7 BUILDING RENT ROLL Tenant Information Lease Term Rent Summary Miscellaneous Unit Tenant Lease Type SF % Begin End Monthly Rent Monthly Rent/SF Increases Options 101/102 CAM Services NNN 2, % 10/1/2014 9/30/2017 $3,900 $1.95 None One 3 year 103 Ink Pagoda NNN 1, % 10/1/2014 9/30/2017 $1,650 $1.65 3% annually One 3 year 104 Golden Shears Barbershop NNN 1, % 9/1/2012 8/31/2017 $1,530 $1.47 Option One 3 year 105 Freeway Insurance NNN 1, % 9/3/2008 9/30/2016 $2,650 $2.55 3% annually One 3 year 106/107 RPM Lenders NNN 2, % 5/15/ /31/2018 $6,805 $3.22 None None Totals: 7,194 $16,535

8 TENANT DESCRIPTIONS RPM Lenders RPM Lenders is one of the nation s largest loan brokers specializing in Auto Title Loans. RPM offers loans on cars, trucks, motorcycles, boats, jet-skis and RV s. With 37 locations throughout Southern and Central California, RPM has been funding vehicle loans for over 15 years. Freeway Auto Insurance Headquartered in Huntington Beach, California, Freeway Insurance offers customers a variety of insurance options, including but not limited to: auto/ motorcycle insurance, homeowner insurance, renters insurance, business insurance, AD&D insurance, life insurance, health insurances, watercraft insurance, landlord insurance, and commercial vehicle insurance. Freeway Insurance operates over 60+ locations in the State of California. com Golden Shears Barbershop With a perfect 5-out-of-5 on the popular online rating service Yelp. com, Golden Shears prides itself on offering reasonably priced barber services in a family friendly environment. Locally owned and operated, Golden Shears is a proven asset to the Fontana community. CAM Services CAM Services provides maintenance and construction services for commercial retail property, office buildings, and other institutions across the Central and Southern California markets. Services provided typically include commercial cleaning, commercial property maintenance, construction, office janitorial service, general repairs, tenant improvements, painting, power sweeping, steam cleaning and landscaping. At present, CAM Services operates six locations across Southern California including Fontana, Culver City, Orange, Ontario, Fresno, and San Diego. Due to high demand, CAM Services recently relocated to Brunswick Retail Center to better serve their clients in the Northern Ink Padoga Tattoo Voted Best Tattoo and Piercing in the Inland Empire three years in a row by TheCityVoter.com, Ink Pagoda Tattoo offers high quality tattoos in a sterile art gallery environment. Ink Pagoda is a wellknown, established tenant in the City of Fontana and recently relocated to Brunswick Retail Center to take their business to the next level.

9 SITE PLAN

10 Sierra Lakes Golf Club & Housing Community SURROUNDING AREA Sierra San Antonio Medical Plaza Fontana Senior Housing Lewis Library & Technology Center Westech College Walmart Center Across Foothill Blvd Chaffey College

11 MARKETPLACE PROFILE MAJOR EMPLOYERS IN FONTANA Fontana is one of the nation s fastest growing cities. It s central location in San Bernardino County lies 50 miles east of Los Angeles and 30 miles west of Big Bear. The City is situated along three major transportation routes including the I-10, I-15 and 210 Freeways. Due to its geographic location, Fontana is identified as the crossroads of the Inland Empire. In terms of public transportation, it s located 10 miles from the Ontario International Airport, and has direct rail service available from Union Pacific Railroad to San Bernardino. All utilities are in place and intersecting freeways in the area support easy transportation by truck, air, or rail across the county. The present population is estimated at 202,000. Founded in 1913, and incorporated in June 1952, Fontana has been known for its diverse economy, providing jobs in such notable industries as agriculture, livestock, trade, and transportation. Additionally, Fontana is noted for being the home of Kaiser Steel from the early 1940 s through Fontana is the home of many railroad and trucking operations, a number of industrial facilities, and several warehousing/distribution centers because of its convenient geographical location and excellent transportation network. Fontana is home to several distribution centers such as: Target Warehouse & Distribution, Southern California Edison, Sears, Home Shopping Network, Mercedes-Benz, and Avery Dennison. Fontana has a large labor pool for industries coming into the area. Fontana is also conveniently located to 11 colleges and universities. The City is home to the newly expanded Kaiser Hospital - an $800M investment in the community. Fontana is centrally located to the mountains, beaches, several lakes and desert areas, in addition to twelve San Bernardino County regional parks. The California Speedway and Sierra Lakes Golf Course are popular attractions within the City. Kaiser Permenante (5,600) Fontana Unified School District (3,900) California Steel Industries (960) MAJOR ATTRACTIONS IN FONTANA California Speedway Sierra Lakes Golf Course

12 Population Executive Summary DEMOGRAPHICS Foothill Blvd Prepared by Brad Umansky Foothill Blvd, Fontana, California, 92335, Latitude: Rings: 1, 3, 5 mile radii Longitude: mile 3 miles 5 miles 2000 Population 22, , , Population 25, , , Population 25, , , Population 27, , , Annual Rate 1.28% 2.03% 2.19% Annual Rate 0.84% 0.90% 0.77% Annual Rate 1.03% 1.04% 0.94% 2013 Male Population 49.9% 49.6% 49.5% 2013 Female Population 50.1% 50.4% 50.5% 2013 Median Age In the identified area, the current year population is 357,440. In 2010, the Census count in the area was 348,695. The rate of change since 2010 was 0.77% annually. The five-year projection for the population in the area is 374,611 representing a change of 0.94% annually from 2013 to Currently, the population is 49.5% male and 50.5% female. Median Age The median age in this area is 28.7, compared to U.S. median age of Race and Ethnicity 2013 White Alone 46.6% 45.9% 45.9% 2013 Black Alone 6.1% 8.6% 10.6% 2013 American Indian/Alaska Native Alone 1.2% 1.2% 1.1% 2013 Asian Alone 1.7% 3.7% 4.8% 2013 Pacific Islander Alone 0.3% 0.3% 0.3% 2013 Other Race 39.3% 35.4% 32.6% 2013 Two or More Races 4.8% 4.9% 4.8% 2013 Hispanic Origin (Any Race) 80.5% 75.4% 71.0% Persons of Hispanic origin represent 71.0% of the population in the identified area compared to 17.4% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 86.8 in the identified area, compared to 62.1 for the U.S. as a whole. Households 2000 Households 6,035 37,170 73, Households 6,445 42,685 86, Total Households 6,587 43,575 87, Total Households 6,930 45,690 91, Annual Rate 0.66% 1.39% 1.59% Annual Rate 0.67% 0.64% 0.51% Annual Rate 1.02% 0.95% 0.86% 2013 Average Household Size The household count in this area has changed from 86,298 in 2010 to 87,734 in the current year, a change of 0.51% annually. The five-year projection of households is 91,550, a change of 0.86% annually from the current year total. Average household size is currently 4.06, compared to 4.02 in the year The number of families in the current year is 75,070 in the specified area.

13 Median Household Income Executive Summary Foothill Blvd Prepared by Brad Umansky Foothill Blvd, Fontana, California, 92335, Latitude: Rings: 1, 3, 5 mile radii Longitude: mile 3 miles 5 miles 2013 Median Household Income $45,094 $51,312 $55, Median Household Income $47,719 $55,312 $62, Annual Rate 1.14% 1.51% 2.38% Average Household Income 2013 Average Household Income $54,159 $64,585 $70, Average Household Income $59,033 $71,690 $78, Annual Rate 1.74% 2.11% 2.13% Per Capita Income 2013 Per Capita Income $13,756 $15,692 $17, Per Capita Income $14,956 $17,329 $19, Annual Rate 1.69% 2.00% 2.02% Households by Income Current median household income is $55,123 in the area, compared to $51,314 for all U.S. households. Median household income is projected to be $62,002 in five years, compared to $59,580 for all U.S. households DEMOGRAPHICS Current average household income is $70,314 in this area, compared to $71,842 for all U.S households. Average household income is projected to be $78,135 in five years, compared to $83,667 for all U.S. households Current per capita income is $17,317 in the area, compared to the U.S. per capita income of $27,567. The per capita income is projected to be $19,142 in five years, compared to $32,073 for all U.S. households Housing 2000 Total Housing Units 6,416 39,402 78, Owner Occupied Housing Units 3,340 23,112 50, Owner Occupied Housing Units 2,695 14,058 23, Vacant Housing Units 381 2,232 4, Total Housing Units 6,919 45,362 91, Owner Occupied Housing Units 3,243 26,052 58, Renter Occupied Housing Units 3,202 16,633 27, Vacant Housing Units 474 2,677 5, Total Housing Units 7,135 46,551 94, Owner Occupied Housing Units 3,178 25,697 57, Renter Occupied Housing Units 3,410 17,878 30, Vacant Housing Units 548 2,976 6, Total Housing Units 7,540 48,505 97, Owner Occupied Housing Units 3,385 27,158 60, Renter Occupied Housing Units 3,545 18,532 30, Vacant Housing Units 610 2,815 6,368 Currently, 61.3% of the 94,048 housing units in the area are owner occupied; 32.0%, renter occupied; and 6.7% are vacant. Currently, in the U.S., 56.4% of the housing units in the area are owner occupied; 32.3% are renter occupied; and 11.3% are vacant. In 2010, there were 91,776 housing units in the area % owner occupied, 30.5% renter occupied, and 6.0% vacant. The annual rate of change in housing units since 2010 is 1.09%. Median home value in the area is $197,103, compared to a median home value of $177,257 for the U.S. In five years, median value is projected to change by 1.59% annually to $213,235.

14 PARCEL MAP APN: Lot Size: 28,087 SF (Per Assessor s Office) Foothill Boulevard, Fontana, CA 92335

15 CONFIDENTIALITY & DISCLAIMER Confidentiality & Disclaimer Notice This investment property offering has been prepared to provide summary, unverified information to prospective purchasers. The information contained herein is not a substitute for a thorough due diligence investigation. Progressive Real Estate Partners makes no representation or warranty with respect to the suitability of the investment for the investor, the income or expenses for the subject property, the future projected financial performance of the property, the size of the land and/or improvements, the presence or absence of hazardous materials, mold, termites, asbestos, compliance with local, state and federal regulations, the ability to finance the property, the physical condition of the improvements thereon, the financial condition or business prospects of any tenant within the property, the condition of title. The information in this investment property offering has been obtained from sources that we believe to be reliable; however, Progressive Real Estate Partners has not verified any of the information contained herein, nor has Progressive Real Estate Partners conducted any investigation regarding these matters and makes no representations or warranties regarding such matters. All potential buyers must take appropriate measures to verify all of the information set forth herein. Co-Operating Broker Fee Progressive Real Estate Partners recognizes the importance of other brokers in the industry that actively represent prospective buyers. It is our policy to cooperate with such brokers. It is our policy to not cooperate with buyers/principals that are also licensed brokers. Co-operating brokers should contact us directly for fee information. Exclusively Represented by: Brad Umansky President office cell Brad@ProgressiveREP.com BRE # Frank Vora Investment Sales Specialist office cell Frank@ProgressiveREP.com BRE # Greg Bedell Investment Sales Associate office cell Greg@ProgressiveREP.com BRE # Haven Ave, Suite 110 Rancho Cucamonga, CA 91730