Foothill Village 911-945 W. Foothill Blvd. Rialto, CA 92376 · 2016-06-23 · Rialto is home to...

Foothill Village

911-945 W. Foothill Blvd.Rialto, CA 92376

Steve Lee, CCIM

[email protected]

01014510

❖ BUSIEST STREET IN CITY OF RIALTO!! 300 FEET WIDE HUGEFRONT LOT BUILDING!

❖ POTENTIAL VALUE ADD ON VACANT CORNER LOTS FOR ALLKIND OF BUSINESS

❖ $103 PER SQUARE FEET! CHEAPER THAN REPLACEMENTCOST!!

❖ LIQUOR STORE SINCE 1984! POTENTIAL OWNER OPERATEBUSINESS!!

❖ SELLER WILL GIVE 1 YEAR VACANT LEASE CREDIT TOBUYER!!!

Phone: 818-707-1750 ● 5706 Corsa Avenue, Suite 200 ● Westlake Village, CA 91362 ● www.CapstoneCRE.com

Table of Contents

SECTION 1 - MARKETING PLAN

SECTION 2 - DETAILS

SECTION 3 - PROPERTY OVERVIEW

SECTION 4 - INVESTMENT OUTLOOK

SECTION 5 - INVESTMENT DETAILS

SECTION 6 - INVESTMENT RETURNS

SECTION 7 - CHARTS AND GRAPHS

SECTION 8 - ADDITIONAL INFORMATION

Marketing PlanFoothill Village911-945 W. Foothill Blvd.Rialto, CA 92376

BiographyFoothill Village


Steve Lee, CCIM818-599-1501

PROFESSIONAL BIO

Steve Lee, CCIM is the founder of Capstone Commerciala full service real estate firm specializing in real estateinvestments and services.

Steve holds a California real estate broker license andGRI. Steve has a strong real estate back ground with anemphasis on commercial properties including:Investment, Retail, Multi-Family, Flex-Warehouse,Leasing & Sales, Land Development, PropertyManagement.

Steve has been extremely successful in assessing client needs and analyzing market prices andoccupancy levels to maximize negotiation position and 1031 exchange.

Steve has also done an excellent job over the years in cultivating a referral network throughcontinued communication with clients.

Steve has been exclusively concentrated in full time commercial real estate since 1987.

Steve was awarded the Certified Commercial Investment Member (CCIM) designation by the CCIMInstitute, one of the leading commercial real estate associations in the word.

Only 3% of the Commercial Real Estate practitioners’ nationwide hold the CCIM designation, whichis one of the most coveted and respected designations as commercial doctor in the industry.

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Confidentiality Agreement

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Capstone Commercial and should not be made available to any other person or entity without the written consent of Capstone Commercial. This Offering Memorandum & Investment Analysis was prepared by Capstone Commercial ("Broker") or Third Party Company (“Broker”) solely for the use of prospective purchasers (“Buyer”) of 913-945 W. Foothill Blvd., Rialto, CA 92376 (the "property"). Neither the Broker nor the Owner of the Property ("Owner") makes any representation or warranty, expressed or implied, as to the completeness or the accuracy of the material contained in the Offering Memorandum. Prospective purchasers (“Buyer”) of the property are advised that changes may have occurred in the physical or financial condition of the Property since the time this Offering Memorandum or the financial statements therein were made by Broker and not by Owner (“Seller”) and are based upon assumptions or events beyond the control of Broker and Owner (“Seller”), and therefore may be subject to variation. Other than historical revenue and operating expense figures for the Property, Owner (“Seller”) has not, and will not, provide Broker or any prospective purchaser (“Buyer”) with any income or expense figures, budgets, or projections regarding the Property. Prospective purchasers (“Buyer”) of the Property are advised and encouraged to conduct their own comprehensive review and analysis of the Property. The Offering Memorandum is a solicitation of interest only and is not an offer to sell the Property. The Owner (“Seller”) and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at any time with or without notice. The Owner (“Seller”) shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until such offer for the Property is approved by Owner (“Seller”) and the signature of Owner (“Seller”) is affixed to a Real Estate Purchase Agreement prepared by Owner (“Seller”). This Offering Memorandum is confidential. By accepting the Offering Memorandum, Investment Analysis, Confidentiality Agreement, you agree to release Capstone Commercial and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation, you agree that you will hold and treat the Offering Memorandum and its contents in the strictest confidence, that you will not photocopy or duplicate any part of the Offering Memorandum, that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior written authorization of the Owner, and that you will not use the Offering Memorandum in any fashion or manner detrimental to the Owner or Broker.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers (“Buyer”), 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. Capstone Commercial 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, investment analysis, the size and square footage of the property and improvements, the presence or absence of contaminating substances, 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. 2012 - Capstone Commercial, We obtained the information contained in this offering from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. Prospective purchasers (“Buyer”) and Owner (“Seller”) acknowledge and agree that: Capstone Commercial: (i) do not decide what price Prospective purchasers (“Buyer”) should pay or Owner (“Seller”) should accept; (ii) do not guarantee the condition of the Property (iii) do not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Owner (“Seller”) or others; (iv) shall not be responsible for identifying defects that are not known to Brokers(s); (v) shall not be responsible for inspecting public records or permits concerning the title or use of the Property; (vi) shall not responsible for identifying location of boundary lines or other items affecting title; (vii) shall not be responsible for verifying square footage, representations of others or information contained in inspection reports, MLS or advertisements, flyers, marketing package or other promotional material, unless otherwise agreed in writing; (viii) shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by prospective purchasers (“Buyer”) or Owner (“Seller”) in the course of this representation; and (ix) shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity. Prospective purchasers (“Buyer”) and Owner (“Seller”) agree to seek legal, tax, insurance, title and other desired assistance from appropriate professionals. By: ________________________________________________ Name: ________________________________________________ Title: ________________________________________________ Company: _________________________________________________ Date: _________________________________________________

DetailsFoothill Village911-945 W. Foothill Blvd.Rialto, CA 92376

Real Estate Investment Details

ANALYSIS

Analysis Date: October 2012

PROPERTY

Property: Foothill Village

Property Address: 911-945 W. Foothill Blvd.Rialto, CA 92376

Year Built: 1994

FINANCIAL INFORMATION

Down Payment: $1,932,872

Closing Costs: $10,000

Discount Rate: 8.00%

PURCHASE INFORMATION

Property Type: Retail

Purchase Price: $1,932,872

Fair Market Value: $1,932,872

Tenants: 12

Total Rentable Sq. Ft.: 18,750

Resale Valuation 2.0% (annual appreciation)

Resale Expenses: 5.0%

LOANS

Debt Term Rate Payment LO Costs

All Cash

INCOME & EXPENSES

Gross Operating Income: $223,823

Monthly GOI: $18,652

Total Annual Expenses: ($59,529)

Monthly Expenses: ($4,961)

CONTACT INFORMATION

Steve Lee, CCIM

818-599-1501

[email protected]

01014510

The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projectionsand analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax orother professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting,tax or other professional area before making any decisions.

page 8 of 40

Property OverviewFoothill Village911-945 W. Foothill Blvd.Rialto, CA 92376

Property DescriptionFoothill Village



Rialto, CA

BEST POTENTIAL INVESTMENT PROPERTYIN RIALTO, SOUTHERN CALIFORNIA AREA! 4 WAY TRAFFIC LIGHT! POTENTIAL VALUE ADD ON VACANT CORNER LOT FOR ALLBUSINESS! WELL ESTIBLISHED COIN LAUNDRY! LIQUOR STORE! 305 FEET WIDE FRONT LOT SHOPPING CENTER FOR VISIBLE!

EASY IN & OUT DRIVE WAY!

MORE THAN 2 ACRES HUGE LOT! SHORT SALE! SELLER WILL GIVE CREDIT 1 YEAR VACANT LEASE TO BUYER!! CASH OFFERS ONLY ACCEPTED!!!

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Property PhotosFoothill Village



Foothill Village Pictures

Building Liquor Store

Mother's Nutritional Center Coin Laundry

Huge Parking Lots Street Signs

page 11 of 40

Maps and AerialsFoothill Village



Map 1

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Maps and AerialsFoothill Village



Map 2

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Foothill Village



Rialto

Rialto is a city in San Bernardino County, California, United States

According to Census Bureau estimates, the city had a population of almost 100,000 in 2010

Its dynamic growth reflects the successes of Rialto’s past. The City of Rialto is an ethnically diverse community, which is located in the center of the Inland Empire, one of the fastest growing areas in the Nation. The City lies in the west portion of the San Bernardino Valley and lies sixty miles to the east of Los Angeles and 100 miles north of San Diego.

Rialto is home to four major regional distribution center:

Staples Inc., which serves stores across the entire West Coast of the United States, Toys “R” Us, FedEx and Target in the northern region of the city, in the Las Colinas community.

One of the United States’ largest fireworks companies, Pyro Spectaculars, is also headquartered in Rialto.

Rialto is proud to be a city of commercial, residential, educational, cultural and industrial growth.

Inland Empire

The Inland Empire encompasses 30,000 square miles including San Bernardino and Riverside Counties, as well as a small portion of eastern Los Angeles County. The Inland Empire is one of the fastest growing metropolitan areas in the nation, with an average of almost 100,000 residents moving to the area every year.

Home to over 4 million residents, Southern California’s Inland Empire is attracting the interest of business, real estate, and site selection executives both around the country and the world.

Due to its proximity to major employment hubs as well as the low cost of land skilled workforce, the Inland Empire represents the ideal location for enterprising businesses.

The extensive transportation network of highways and railroads has made the Inland Empire a major shipping hub to some of the nation’s largest manufactorers.

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Investment OutlookFoothill Village911-945 W. Foothill Blvd.Rialto, CA 92376

Executive SummaryFoothill Village



ACQUISITION COSTS

Purchase Price, Points and Closing Costs $1,942,872

Investment - Cash $1,942,872

INVESTMENT INFORMATION

Purchase Price $1,932,872

Price per Tenant $161,073

Price per Sq. Ft. $103.09

INCOME, EXPENSES & CASH FLOW

Gross Scheduled Income $316,703

Total Vacancy and Credits ($92,880)

Operating Expenses ($59,529)

Net Operating Income $164,294

Debt Service $0

Cash Flow Before Taxes $164,294

FINANCIAL INDICATORS

Cash on Cash Return Before Taxes 8.46%

Optimal Internal Rate of Return (yr 10) 13.33%

Debt Coverage Ratio N/A

Capitalization Rate 8.50%

Gross Income / Square Feet $16.89

Gross Expenses / Square Feet ($3.17)

Operating Expense Ratio 26.60%

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Sales ComparablesFoothill Village



Subject 1 2 3

2%

4%

6%

8%

10%

12%

14%

16%Cap Rate

Subject 1 2 3

$22

$44

$66

$88

$110

$132

$154

$176

Avg.

$134.42

Price per Sq. Ft.

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S Foothill Village911-945 W. Foothill Blvd.Rialto, CA 92376

Sale Price $1,932,872

Tenants 12

Price/Tenant $161,073

Price/SqFt $103.09

Cap Rate 8.5%

Year Built 1994

1 null165 S SPRUCE AVERIALTO, CA 92376


Tenants 0

Price/Tenant N/A

Price/SqFt $110.61

Cap Rate N/A

Year Built 2006Sale Date 2/23/2011

2 null2019 N RIVERSIDE AVERIALTO, CA 92377


Tenants 0

Price/Tenant N/A

Price/SqFt $172.63

Cap Rate N/A


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3 null578 W FOOTHILL BLVDRIALTO, CA 92376


Tenants 8

Price/Tenant $282,500

Price/SqFt $120.00

Cap Rate N/A


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S 911-945 W. Foothill Blvd., Rialto, CA 92376 ($1,932,872)

1 165 S SPRUCE AVE, RIALTO, CA 92376 ($3,700,000)

2 2019 N RIVERSIDE AVE, RIALTO, CA 92377 ($2,589,000)

3 578 W FOOTHILL BLVD, RIALTO, CA 92376 ($2,260,000)

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Tenant Mix ReportFoothill Village



TENANT MIXES

Suite Tenants Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly911 Liquor 2840 $5,652 $5,652 $5,652 $5,652913-915 Vacant 1920 $1,920 $1,920 $1,920 $1,920917 Vacant 1020 $1,020 $1,020 $1,020 $1,020919-921 Mother's Nutritional 2220 $3,663 $3,663 $3,663 $3,663923 Vacant 1200 $1,200 $1,200 $1,200 $1,200935 Vacant 900 $900 $900 $900 $900937 Vacant 900 $900 $900 $900 $900939 Vacant 900 $900 $900 $900 $900941 Vacant 900 $900 $900 $900 $900943 Mexican Restaurant 2040 $1,999 $1,999 $1,999 $1,999945 Coin Laundry 3000 $5,190 $5,190 $5,190 $5,190? Not Sure 910 $0 $0 $0 $012 18,750 $24,244 $24,244

TENANT MIX TENANT MIX SQUARE FEET

● Liquor

● Vacant

● Vacant

● Mother's Nutritional Center

● Vacant

● Vacant

● Vacant

● Vacant

● Vacant

● Mexican Restaurant

● Coin Laundry

● Not Sure

● Liquor

● Vacant

● Vacant


● Vacant

● Vacant

● Vacant

● Vacant

● Vacant


● Coin Laundry

● Not SureTENANT MIX INCOME TENANT MIX MARKET INCOME

● Liquor

● Vacant

● Vacant


● Vacant

● Vacant

● Vacant

● Vacant

● Vacant


● Coin Laundry

● Not Sure

● Liquor

● Vacant

● Vacant


● Vacant

● Vacant

● Vacant

● Vacant

● Vacant


● Coin Laundry

● Not Sure

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Investment DetailsFoothill Village911-945 W. Foothill Blvd.Rialto, CA 92376

Lease Rent RollFoothill Village



Suite Tenant Start Date Expire Date RSF $/RSF AnnualizedRent

TenantImprovements

Commissions RenewalTerm

RenewalIncrease

Notes

911 Liquor 09/08/1984 07/31/2014 2,840 $23.88 $67,819 $0.00 $0.00 1 year $0.00

913-915 Vacant 11/01/2012 10/31/2013 1,920 $12.00 $23,040 $0.00 $0.00 1 year $0.00 1 Year Lease Credit To Buyer

917 Vacant 11/01/2012 10/31/2013 1,020 $12.00 $12,240 $0.00 $0.00 1 year $0.00 1 Year Lease Credit To Buyer

919-921 Mother's Nutritional Center 02/10/2007 02/09/2013 2,220 $19.80 $43,956 $0.00 $0.00 1 year $0.00

923 Vacant 11/01/2012 10/31/2013 1,200 $12.00 $14,400 $0.00 $0.00 1 year $0.00 1 Year Lease Credit To Buyer

935 Vacant 11/01/2012 10/31/2013 900 $12.00 $10,800 $0.00 $0.00 1 year $0.00 1 Year Lease Credit To Buyer




943 Mexican Restaurant 03/01/2005 02/28/2015 2,040 $11.76 $23,990 $0.00 $0.00 1 year $0.00

945 Coin Laundry 01/01/2006 12/31/2015 3,000 $20.76 $62,280 $0.00 $0.00 1 year $0.00

? Not Sure 11/01/2012 10/31/2013 910 $0.00 $0 $0.00 $0.00 1 year $0.00 ?

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Summary Lease AnalysisFoothill Village



Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Potential Lease Revenue

Base Rental Income $290,926 $290,926 $290,926 $290,926 $290,926 $290,926 $290,926 $290,926 $290,926 $290,926

Lease-up Vacancy ($92,880) $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent Abatement $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Turnover Vacancy $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Expense Reimbursements $25,778 $54,636 $55,425 $56,231 $57,052 $57,890 $58,745 $59,617 $60,506 $61,413

Potential Lease Costs

Tenant Improvements $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Lease Commissions $0 ($464) $0 $0 $0 $0 $0 $0 $0 $0

Net Lease Cash Flow $223,823 $345,097 $346,351 $347,156 $347,978 $348,816 $349,671 $350,542 $351,432 $352,339

Additional Information

Sq. Ft. Expires 2,220 13,710 15,750 18,750 18,750 18,750 18,750 18,750 18,750 18,750

Dollars Expires $43,956 $204,655 $228,646 $290,926 $290,926 $290,926 $290,926 $290,926 $290,926 $290,926

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Cash Flow AnalysisFoothill Village




GROSS SCHEDULED INCOME $316,703 $345,561 $346,351 $347,156 $347,978 $348,816 $349,671 $350,542 $351,432 $352,339

Lease-up Vacancy ($92,880) $0 $0 $0 $0 $0 $0 $0 $0 $0

General Vacancy $0 ($17,278) ($17,318) ($17,358) ($17,399) ($17,441) ($17,484) ($17,527) ($17,572) ($17,617)

Total Operating Expenses ($59,529) ($61,089) ($61,972) ($62,872) ($63,791) ($64,728) ($65,684) ($66,659) ($67,653) ($68,667)

NET OPERATING INCOME $164,294 $267,194 $267,061 $266,926 $266,788 $266,647 $266,503 $266,357 $266,207 $266,055

Loan Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Capital Costs $0 ($464) $0 $0 $0 $0 $0 $0 $0 $0

NET CASH FLOW (b/t) $164,294 $266,730 $267,061 $266,926 $266,788 $266,647 $266,503 $266,357 $266,207 $266,055

Cash On Cash Return b/t 8.46% 13.73% 13.75% 13.74% 13.73% 13.72% 13.72% 13.71% 13.70% 13.69%

Footnotes: b/t = before taxes;a/t = after taxes

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Annual Property Operating DataFoothill Village




Rental Income $290,926 $290,926 $290,926 $290,926 $290,926 $290,926 $290,926 $290,926 $290,926 $290,926

Expense Reimbursements $25,778 $54,636 $55,425 $56,231 $57,052 $57,890 $58,745 $59,617 $60,506 $61,413

GROSS SCHEDULED INCOME $316,703 $345,561 $346,351 $347,156 $347,978 $348,816 $349,671 $350,542 $351,432 $352,339

Lease-up Vacancy ($92,880) $0 $0 $0 $0 $0 $0 $0 $0 $0

General Vacancy $0 ($17,278) ($17,318) ($17,358) ($17,399) ($17,441) ($17,484) ($17,527) ($17,572) ($17,617)

GROSS OPERATING INCOME $223,823 $328,283 $329,033 $329,798 $330,579 $331,375 $332,187 $333,015 $333,860 $334,722

Expenses

Property Management Fee ($9,379) ($10,096) ($10,119) ($10,143) ($10,167) ($10,191) ($10,216) ($10,241) ($10,267) ($10,294)

Accounting ($700) ($700) ($700) ($700) ($700) ($700) ($700) ($700) ($700) ($700)

Alarm/Phone ($1,400) ($1,400) ($1,400) ($1,400) ($1,400) ($1,400) ($1,400) ($1,400) ($1,400) ($1,400)

Building Insurance ($2,650) ($2,703) ($2,757) ($2,812) ($2,868) ($2,926) ($2,984) ($3,044) ($3,105) ($3,167)

Grounds Maintenance ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($2,400)

Legal ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500)

Maintenance ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500)

Repairs ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500)

Taxes - Real Estate ($25,000) ($25,500) ($26,010) ($26,530) ($27,061) ($27,602) ($28,154) ($28,717) ($29,291) ($29,877)

Trash Removal ($5,000) ($5,100) ($5,202) ($5,306) ($5,412) ($5,520) ($5,631) ($5,743) ($5,858) ($5,975)

Utility - Electricity ($3,000) ($3,060) ($3,121) ($3,184) ($3,247) ($3,312) ($3,378) ($3,446) ($3,515) ($3,585)

Utility - Water / Sewer ($6,500) ($6,630) ($6,763) ($6,898) ($7,036) ($7,177) ($7,320) ($7,466) ($7,616) ($7,768)

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Annual Property Operating DataFoothill Village




TOTAL OPERATING EXPENSES ($59,529) ($61,089) ($61,972) ($62,872) ($63,791) ($64,728) ($65,684) ($66,659) ($67,653) ($68,667)

NET OPERATING INCOME $164,294 $267,194 $267,061 $266,926 $266,788 $266,647 $266,503 $266,357 $266,207 $266,055

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Annual Property Operating Data per Sq. Ft.Foothill Village




Rental Income $15.52 $15.52 $15.52 $15.52 $15.52 $15.52 $15.52 $15.52 $15.52 $15.52

Expense Reimbursements $1.37 $2.91 $2.96 $3.00 $3.04 $3.09 $3.13 $3.18 $3.23 $3.28

Miscellaneous Income $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

GROSS SCHEDULED INCOME $16.89 $18.43 $18.47 $18.51 $18.56 $18.60 $18.65 $18.70 $18.74 $18.79

Lease-up Vacancy ($4.95) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

General Vacancy $0.00 ($0.92) ($0.92) ($0.93) ($0.93) ($0.93) ($0.93) ($0.93) ($0.94) ($0.94)

GROSS OPERATING INCOME $11.94 $17.51 $17.55 $17.59 $17.63 $17.67 $17.72 $17.76 $17.81 $17.85

Expenses

Property Management Fee ($0.50) ($0.54) ($0.54) ($0.54) ($0.54) ($0.54) ($0.54) ($0.55) ($0.55) ($0.55)

Accounting ($0.04) ($0.04) ($0.04) ($0.04) ($0.04) ($0.04) ($0.04) ($0.04) ($0.04) ($0.04)

Alarm/Phone ($0.07) ($0.07) ($0.07) ($0.07) ($0.07) ($0.07) ($0.07) ($0.07) ($0.07) ($0.07)

Building Insurance ($0.14) ($0.14) ($0.15) ($0.15) ($0.15) ($0.16) ($0.16) ($0.16) ($0.17) ($0.17)

Grounds Maintenance ($0.13) ($0.13) ($0.13) ($0.13) ($0.13) ($0.13) ($0.13) ($0.13) ($0.13) ($0.13)

Legal ($0.03) ($0.03) ($0.03) ($0.03) ($0.03) ($0.03) ($0.03) ($0.03) ($0.03) ($0.03)

Maintenance ($0.08) ($0.08) ($0.08) ($0.08) ($0.08) ($0.08) ($0.08) ($0.08) ($0.08) ($0.08)

Repairs ($0.08) ($0.08) ($0.08) ($0.08) ($0.08) ($0.08) ($0.08) ($0.08) ($0.08) ($0.08)

Taxes - Real Estate ($1.33) ($1.36) ($1.39) ($1.41) ($1.44) ($1.47) ($1.50) ($1.53) ($1.56) ($1.59)

Trash Removal ($0.27) ($0.27) ($0.28) ($0.28) ($0.29) ($0.29) ($0.30) ($0.31) ($0.31) ($0.32)

Utility - Electricity ($0.16) ($0.16) ($0.17) ($0.17) ($0.17) ($0.18) ($0.18) ($0.18) ($0.19) ($0.19)

Utility - Water / Sewer ($0.35) ($0.35) ($0.36) ($0.37) ($0.38) ($0.38) ($0.39) ($0.40) ($0.41) ($0.41)

page 28 of 40

Annual Property Operating Data per Sq. Ft.Foothill Village




TOTAL OPERATING EXPENSES ($3.17) ($3.26) ($3.31) ($3.35) ($3.40) ($3.45) ($3.50) ($3.56) ($3.61) ($3.66)

NET OPERATING INCOME $8.76 $14.25 $14.24 $14.24 $14.23 $14.22 $14.21 $14.21 $14.20 $14.19

page 29 of 40

Detailed General ExpensesFoothill Village




Total Expenses ($59,529) ($61,089) ($61,972) ($62,872) ($63,791) ($64,728) ($65,684) ($66,659) ($67,653) ($68,667)

Property Management Fee ($9,379) ($10,096) ($10,119) ($10,143) ($10,167) ($10,191) ($10,216) ($10,241) ($10,267) ($10,294)

Accounting ($700) ($700) ($700) ($700) ($700) ($700) ($700) ($700) ($700) ($700)

Alarm/Phone ($1,400) ($1,400) ($1,400) ($1,400) ($1,400) ($1,400) ($1,400) ($1,400) ($1,400) ($1,400)

Building Insurance ($2,650) ($2,703) ($2,757) ($2,812) ($2,868) ($2,926) ($2,984) ($3,044) ($3,105) ($3,167)

Grounds Maintenance ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($2,400)

Legal ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500)

Maintenance ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500)

Repairs ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500)

Taxes - Real Estate ($25,000) ($25,500) ($26,010) ($26,530) ($27,061) ($27,602) ($28,154) ($28,717) ($29,291) ($29,877)

Trash Removal ($5,000) ($5,100) ($5,202) ($5,306) ($5,412) ($5,520) ($5,631) ($5,743) ($5,858) ($5,975)

Utility - Electricity ($3,000) ($3,060) ($3,121) ($3,184) ($3,247) ($3,312) ($3,378) ($3,446) ($3,515) ($3,585)

Utility - Water / Sewer ($6,500) ($6,630) ($6,763) ($6,898) ($7,036) ($7,177) ($7,320) ($7,466) ($7,616) ($7,768)

page 30 of 40

Investment ReturnsFoothill Village911-945 W. Foothill Blvd.Rialto, CA 92376

Internal Rate of Return AnalysisFoothill Village



BEFORE TAX IRR

Time Future Cash Flows

Initial Investment ($1,942,872)

End of Year 1 $164,294









End of Year 10* $2,504,407

IRR = 13.65% * ($266,055 + $2,238,352)

AFTER TAX IRR

Time Future Cash Flows

Initial Investment ($1,942,872)










End of Year 10* $2,380,906

IRR = 13.33% * ($266,055 + $2,114,851)

page 32 of 40

Investment Return AnalysisFoothill Village




Cash Flow - To Date $164,294 $431,024 $698,085 $965,011 $1,231,799 $1,498,446 $1,764,949 $2,031,306 $2,297,513 $2,563,568

Net Resale Proceeds $1,872,953 $1,894,139 $1,911,779 $1,938,297 $1,965,595 $1,993,688 $2,022,592 $2,052,323 $2,082,898 $2,114,851

Invested Capital ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872)

Net Return on Investment $94,375 $382,291 $666,992 $960,436 $1,254,522 $1,549,262 $1,844,669 $2,140,757 $2,437,539 $2,735,546

Internal Rate of Return 4.86% 9.77% 11.31% 12.13% 12.60% 12.88% 13.07% 13.19% 13.27% 13.33%

Modified IRR 4.86% 9.71% 11.02% 11.58% 11.79% 11.83% 11.80% 11.72% 11.62% 11.51%

NPV (cash flow + reversion) ($56,532) $61,849 $167,563 $270,837 $365,453 $452,096 $531,400 $603,947 $670,278 $731,131

PV (NOI + reversion) $1,886,340 $2,019,070 $2,140,080 $2,250,340 $2,350,748 $2,442,127 $2,525,233 $2,600,764 $2,669,359 $2,731,606

Footnotes: a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating IncomeReversion = Amount received from the resale; Net Return on Investment = Cash Flow (a/t To Date) + Net Proceeds from Resale - Invested Capital.

page 33 of 40

Cumulative AnalysisFoothill Village




Equity (appreciation) $38,657 $78,088 $118,307 $159,331 $201,175 $243,856 $287,390 $331,796 $377,089 $423,288

Equity (loan reduction) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CASH FLOW (a/t) $164,294 $431,024 $698,085 $965,011 $1,231,799 $1,498,446 $1,764,949 $2,031,306 $2,297,513 $2,563,568

Totals - To Date $202,952 $509,112 $816,392 $1,124,342 $1,432,974 $1,742,302 $2,052,339 $2,363,101 $2,674,602 $2,986,856

Invested Capital ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872) ($1,942,872)

ROIC - To Date 10.45% 26.20% 42.02% 57.87% 73.76% 89.68% 105.63% 121.63% 137.66% 153.73%

Footnotes: a/t = after taxes; ROIC = Return On Invested Capital

page 34 of 40

Charts And GraphsFoothill Village911-945 W. Foothill Blvd.Rialto, CA 92376

Operating Income AnalysisFoothill Village



Year 1 2 3 4 5 6 7 8 9 10

$34,000

$68,000

$102,000

$136,000

$170,000

$204,000

$238,000

$272,000

$306,000

$340,000

Legend

GROSS OPERATING INCOME NET OPERATING INCOME NET CASH FLOW (b/t)

page 36 of 40

Gross Income Vs. Operating ExpensesFoothill Village



Year 1 2 3 4 5 6 7 8 9 10

$36,000

$72,000

$108,000

$144,000

$180,000

$216,000

$252,000

$288,000

$324,000

$360,000

Legend

GROSS SCHEDULED INCOME Total Operating Expenses

page 37 of 40

Cumulative Wealth AnalysisFoothill Village



Year 1 2 3 4 5 6 7 8 9 10

$300,000

$600,000

$900,000

$1,200,000

$1,500,000

$1,800,000

$2,100,000

$2,400,000

$2,700,000

$3,000,000

Legend

Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t)

page 38 of 40

Additional InformationFoothill Village911-945 W. Foothill Blvd.Rialto, CA 92376

Traffic Count MapRialto Shopping Center Prepared by Steve Lee, CCIM913 W Foothill Blvd, Rialto, CA, 92376 Latitude: 34.106713Drive Time: 5 Minutes Longitude: -117.388419

October 15, 2012

©2012 Esri

Source: ©2011 MPSI (Market Planning Solutions Inc.) Systems Inc. d.b.a. DataMetrix®

Foothill Village 911-945 W. Foothill Blvd. Rialto, CA 92376 · 2016-06-23 · Rialto is home to...

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