OFFERING MEMORANDUM 2191 N Lakewood Blvd Long …...PROPERTY OVERVIEW 2191 N Lakewood Blvd is a...

OFFERING MEMORANDUM

2191 N Lakewood Blvd

Long Beach, CA 90815

BRETT LYON

(310) 780-1899

[email protected]

LIC. 01717818

WOODY STAHL

(310) 710-3829

[email protected]

LIC. 01399621



LYON STAHL INVESTEMENT REAL ESTATE • 2

TABLE OF CONTENTS

THE PROPERTY 3

Property Overview / Highlights

Property Photographs

Floor Plan

Local Map

Aerial Map

THE FINANCIALS 12

Financial Overview

Rent Roll

COMPARABLES 16

Sold Comparables

Sold Comparables Map

Lease Comparables

Lease Comparables Map

On-Market Comparables

On-Market Comparables Map

THE LOCATION 23

City Overview

County Overview

DISCLAIMER AND CONFIDENTIALITY AGREEMENT 26

OFFERING MEMORANDUM



LYON STAHL INVESTEMENT REAL ESTATE

PROPERTY

OVERVIEW




PROPERTY OVERVIEW

PROPERTY SUMMARY

PRICE $6,000,000

ADDRESS 2191 N. Lakewood Blvd

CITY, STATE, ZIP Long Beach, CA 90815

COUNTY Los Angeles

YEAR BUILT 1944

NUMBER OF UNITS 2

BUILDING SIZE 17,810 SF

LOT SIZE 37,900 SF

CAP RATE 7.04 %

PRO FORMA CAP RATE 7.64%

GRM 13.03

PRO FORMA GRM 12.36

PRICE / BLDG SF $366.89

PRICE / LOT SF $158.31




PROPERTY OVERVIEW

2191 N Lakewood Blvd is a large retail spacesituated in the heart of Long Beach. This building islocated at the signalized intersection of NLakewood Blvd and E Stearns St on a 37,900 sq ft lot,with 39 free surface parking spaces. The propertyhas fantastic in-place income from its two tenants,and currently has a 10-year NNN lease with theFortune 500 company Dollar Tree. The other tenant,a medical company, is on a modified gross leaseand pays 100% of its utilities. In total, these retailspaces generate annual gross rents of $458,320. Thisis an incredible investment opportunity for acommercial investor looking to maximize cash flowand acquire a rare 7% CAP NNN building in primeLong Beach.

• Corner Lot Retail Space at Signalized Intersection | High Traffic Volume - Over 32,000 Daily High Traffic Volume - Over 32,000 Daily

• Includes 39 Free Surface Parking Spaces | Total Rentable Building Size of 17,810

• Dollar Tree NNN Tenant With 10-Year Lease Term

• Strong Cash Flow - 7% CAP Rate




PROPERTY PHOTOGRAPHS

OFFERING MEMORANDUM




FINANCIAL

OVERVIEW




FINANCIAL OVERVIEW




FINANCIAL OVERVIEW

SCHEDULED RENT SUMMARY

Tenant Name SF Current Rent Pro Forma Rent

Dollar Tree 9,895 $13, 193 $13,750

Lakewood Holdings,

LLC

7,800 $25, 188 $28,349

SCHEDULED RENT SUMMARY

Current Actuals Pro Forma Rent

Gross Scheduled Income $460,569 $485,250

Less Vacancy 0% $0 0% $0

Expense Reimbursement $48,496 $60,000

Gross Operating Income $509,065 $545,250

EXPENSE SUMMARY

Current Actuals Pro Forma

Real Estate Taxes and Special Assessment Tax Actual Tax & Assessments $75,000 $75,000

Insurance Est. $0.40 Per SF $5,400 $5,400

Utilities 2019 Actual $4,000 $4,000

Bank Service Changes 2019 Actual $1,200 $1,200

Business Lic./Permits 2019 Actual $800 $800

Postage $200 $200

TOTAL EXPENSES $86,600 $86,600

NET OPERATING INCOME $422,465 $458,650

Pre-Tax Cash Flow

Principal Reduction $243,075 243,075

TOTAL RETURN 7.63% $49,533 8.84% $165,740




RENT ROLL

TENANT NAME SF CURRENT RENT ($) CURRENT RENT $/SF MONTHLY LEASE

COMMENCEMENT

LEASE EXPIRATION

Dollar Tree 9,895 $13,193 $16/SF 10/01/16 10/01/26*

Lakewood Holdings,

LLC

7,800 $25,188 $38.75/SF 10/01/17 10/01/22*

MONTHLY TOTALS $38,381 $54.75

ANNUALIZED TOTALS $460,569 $657/SF

*Dollar Tree Initial Lease Term: 10 Years*Lakewood Holdings, LLC Initial Lease Term: 5 Years

OFFERING MEMORANDUM




COMPARABLES




LEASE COMPARABLES

Address Date Listed Year Built Unit Type Unit Size Rental Rate

Averages N/A 1993 N/A 11,215 $27.92/NNN

13, 193 25, 188

1

2

3

4

5

6




LEASE COMPARABLES MAP

OFFERING MEMORANDUM




LOCATION




LOCAL MAP




AERIAL MAP




Long Beach

Long Beach has emerged as a popular coastal community inSouthern California. Located south of the city of Los Angeles,it has a population of about 471,000. Located near the 405and 710 freeways, and with access to the Metro Blue Linetrain, Long Beach provides easy commutes to majoremployment hubs in Los Angeles and Orange County. LongBeach is also home to major businesses such as Verizon,Molina Healthcare, and the Port of Los Angeles.

Dozens of projects are transforming the city’s landscape, withmore than $2.5 billion in capital pouring into Long Beach.These include the Douglas Park Redevelopment, a 261 acremixed-use project on the site of the former Boeing campus. Itwill bring over 5000 jobs to Long Beach and will be home tonearly 30 businesses such as Mercedes–Benz US Westheadquarters and Virgin Galactic.

Downtown Long Beach is a burgeoning urban environment,featuring a waterfront harbor, a historic architectural districtand a cultural arts scene. The Pine Avenue district providesmany restaurants, shopping and nightlife options. DowntownLong Beach boasts many tourist attractions such as theAquarium of the Pacific, the Toyota Grand Prix, and the LongBeach Convention Center. The Queen Mary is a majorwaterfront attraction, and the $250 million Queen Mary Islandretail and entertainment complex is planned for thesurrounding area. And the Long Beach Civic Center isundergoing a complete overhaul including development of anew Civic Center with a new City Hall, library, headquartersfor the port of Long Beach, and multifamily housing.

CITY OVERVIEW




Long Beach Civic Center Project

The New Long Beach Civic Center Project will bring to downtown a revitalized civic core to serve local residents and businesses, attract visitors and provide safe and efficient city operations to serve the citizens of Long Beach. The $520 million, design-build-finance-operate-maintain civic center will replace the old city hall and provide efficient new offices for the Port of Long Beach, a new city library and a retail marketplace and public park that will serve residents and visitors of Long Beach for years to come.

CITY PROJECTS




CITY PROJECTS

New Blue Improvement

Metro began significant improvements on the Blue Line in Late January 2019and will continue through to Fall 2019. Through these improvements, Metro willinvest $350 million to renovate/replace their oldest railway in the LA system.The improvements aim to enhance safety, increase reliability and improve therider’s experience.

The first half of the project has recently been completed and encompasses thesouthern section of the Blue Line (Compton Station to Pacific Ave). The secondphase for the northern railway section is set to be completed by Fall 2019(Willowbrook/Rosa Parks to 7th St/Metro Center)

2nd & PCH

This Whole Foods anchored center is destined to become the social hub andcommunity gathering place with its spectacular views and enviable settingdirectly across from Alamitos Bay and the Long Beach Marina. The coastalcontemporary architecture and outdoor living areas invite guests to stay, enjoythe view, and relax, with Wi-Fi, fire pits, water features, lush landscaping,dedicated bicycle lanes and hospitality focused amenities.

Future tenants include but are not limited to Whole Foods, Sephora, FreePeople, Ola Mexican Kitchen, Tocaya Modern Mexican and Linnie’s Boutique.Center completion is set for October 2019.




CITY PROJECTS

QUEEN MARY ISLAND

Renderings of the proposed $250 millionredevelopment give us a glimpse of what to expect forthe 65 acres of waterfront that will be transformed intoa destination called Queen Mary Island. Queen MaryIsland aims to have something for everyone.

It will include restaurants, live music, 700,000 squarefeet of retail space, and a new 200-room hotel. A150,000-square-foot structure will house an attractioncalled Urban Adventure, featuring 20 activities for thethrill-seeker, such as surfing, zip lining, a trampolinepark, and an indoor ice-climbing wall.

THE AQUARIUM OF THE PACIFIC

The Aquarium of the Pacific in Long Beach announceda big, undulating expansion, revealing plans for a newwing they’re calling Pacific Visions.

The 29,000-square-foot addition will include a numberof flashy components, including: A two-story, 300-seatimmersive theater with a 32-foottall, curving screenand “floor projection disc,” a new Changing ExhibitGallery with live animals, multimedia displays, and“dynamic projected wall murals,” an art gallery forcultural events and exhibitions, along with anorientation gallery with a 26-foot-wide “media wall.”




CITY PROJECTS

OCEAN VIEW TOWEROcean View Tower is located right next to the large Camden Harbor View apartment complex, this adaptive reuse project will transform an existing

office building into a residential development with 94 apartments and 4,597 square feet of retail space.

GLASSY HOTEL TOWERThis hotel tower would rise in the heart of Downtown Long Beach,

bringing hundreds of guest rooms and new restaurant space to the area. Plans for the large development are still being worked out. The developer

has proposed the project to rise 36 stories and include more than 500 rooms.

THE BEACONThis affordable housing complex broke ground just last month and is expected

to open in 2019. Once complete, the two-building development will include 160 units of supportive housing for veterans and seniors.

THE PACIFICThe Pacific will feature 163 apartments (17 of them affordable), along with

community amenities like a fitness center and bike workshop.




CITY PROJECTS

THE OCEANAIREOnce an Ocean Ave. parking lot, it promises to offer future residents some

very nice views and convenient access to both public transit and the beach. According to the architects, the upscale apartments will be catered

to young professionals and will feature amenities like a pool, sun deck, fitness room/yoga studio, and the increasingly obligatory dog spa.

500 WEST BROADWAYThe city’s planning commission has approved a new 7-story apartment

building with 142 units and ground-floor commercial space. Located at 500 West Broadway, the project is set to include 65 studio apartments. 41

one-bedrooms, (32) 2-bed, and (4) 3-bed units. Street-level commercial space will include 1,168 square feet of retail and a 2,267-square-foot cafe.

101 ALAMITOS AVENUEDeveloper SARES REGIS Group, which is building The Pacific, is also behind this

seven-story residential development with 136 condos and a bit of retail/restaurant space.

AMLI PARC BROADWAYWill replace a government office building with 222 residential units and 8,500 sqft. of retail space, including an art gallery and a “bike kitchen.”

The information contained in this Offering Memorandum (“Memorandum”) is proprietary and strictly confidential; it is

intended to be reviewed only by the party receiving it from Broker and should not be made available to anyone else without

the written consent of Broker. By retention or use of this Memorandum, you agree that its contents are confidential, that you

will hold it in the strictest confidence, and that you will not disclose any of its contents contrary to these terms.

This Memorandum has been prepared to provide summary, unverified information to establish a preliminary level of interest in

the subject property (“Property”). The information in this Memorandum has been obtained from sources Broker believes to be

reliable; however, Broker has not conducted sufficient investigation to make any warranty or representation whatsoever

including but not limited to the accuracy or completeness of the information, veracity or accuracy of the information,

condition of the Property or its compliance or lack of compliance with applicable governmental requirements,

developability, suitability or financial performance of the Property, income or expenses for 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 or Federal regulations, the physical condition of the improvements thereon, or the financial condition

or business Property and does not purport to be an all – inclusive representation regarding the Property or to contain all or

part of the information which prospective investors may require to evaluate the purchase of the Property. Additional

information and an opportunity to investigate the Property will be made available to interested and qualified prospective

purchasers. All information is based on assumptions relating to the general economy, market conditions, competition and

other factors beyond the control of Broker, therefore, all information is subject to material variation. The information

contained herein is not a substitute for a thorough due diligence investigation. Interested parties are expected to review all

information of whatever nature independently and not rely on the contents of this Memorandum in any manner.

The Property owner (“Owner”) expressly reserves the right, at its sole discretion, to reject any or all offers to purchase the

Property, and/or to terminate discussions at any time with or without notice. The Owner shall have no legal commitment or

obligation unless and until written agreement(s) have been fully executed, delivered and approved by the Owner and any

conditions to the Owner’s obligations therein have been satisfied or waived.

DISCLAIMER & CONFIDENTIALITY AGREEMENT


BRETT LYON

(310) 780-1899

[email protected]

LIC. 01717818

WOODY STAHL

(310) 710-3829

[email protected]

LIC. 01399621

OFFERING MEMORANDUM 2191 N Lakewood Blvd Long …...PROPERTY OVERVIEW 2191 N Lakewood Blvd is a...

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