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Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, California License Number 01385740.
SAVE MART CENTERA HIGH-PERFORMING, GROCERY-ANCHORED RETAIL CENTER
LOCATED IN NORTHERN CALIFORNIA
INVESTMENT OVERVIEW
HFF has been exclusively retained by Ownership to offer qualified investors the exciting opportunity to acquire the fee simple interest in Save Mart Center (the “Property” or “Center”), an 80,640 SF grocery-anchored shopping center located in Lathrop, California. The Property is 100% leased and anchored by Save Mart Supermarkets with sales over $457/SF and a lease term extending through 2025. The Property is located in a trade area with over 86,000 residents within a 5-mile radius and average household incomes exceeding $75,000. The Center offers a complementary mix of national and regional tenants including Chase Bank, Starbucks Coffee, Baskin Robbins, Papa Murphy’s, and Mikasa Japanese Bistro. Save Mart Center is prominently positioned with great visibility exposing it to nearly 95,000 vehicles per day via Interstate-5 and over 20,000 vehicles via the surrounding arteries of Harlan Rd. and W. Lathrop Rd.
`MAJOR TENANTS INCLUDE:
TENANT SIZE (SF) LEASE EXP.
SAVE MART SUPERMARKETS 48,316 October 2025
CHASE BANK 4,200 February 2021
STARBUCKS COFFEE (W/ DRIVE-THRU) 1,702 February 2026
BASKIN ROBBINS 1,350 July 2020
Debt Assumptions: 65.0% LTV; 4.50% Interest Rate; Interest Only Amortization
PROPERTY SUMMARY
ADDRESS 15010 Harlan Road Lathrop, California 95330
% LEASED 100.0%
SQUARE FEET 80,640
OFFERING PRICE $16,400,000
IN-PLACE NOI $1,141,951
LEVERAGED CASH ON CASH RETURN 11.0%
REQUIRED EQUITY $5,740,000
CAP RATE 7.0%
SITE AREA ±9.98 Acres
PARKING RATIO 5.74 / 1,000 SF
YEAR BUILT 2005
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SAVE MART CENTER LATHROP, CALIFORNIA
RANKING FOR AMERICA’S LARGEST PRIVATE COMPANIES
RANKING FOR THE TOP 50 LARGEST U.S. GROCERY CHAINS
RANKING FOR TOP RETAIL CHAINS
RANKING FOR THE TOP 50 FASTEST GROWING GROCERY CHAINS
(FORBES 2016)(PROGRESSIVE GROCER 2016)
(THE BALANCE 2013) (CHAIN STORE GUIDE 2010)
#91 #21 #34 #5
STRONG GROCERY STORE SALES
WITH GROWTH
Save Mart Supermarkets generates sales of over $22.1M (±$458 PSF) and shows positive sales growth (±20% over the past four years) with a strong health ratio under 3.0%.
GROCERY-ANCHORED SHOPPING CENTER
IN CALIFORNIA’S CENTRAL VALLEY
Grocery-anchored by Save Mart Supermarkets ($4.5B sales/213 stores) on a long-term lease through 2025, providing a consistent, “daily needs” draw to the property.
INVESTMENT HIGHLIGHTS
SAVE MART SUPERMARKETS PERFORMANCE (YEAR ENDING JUNE-2017)
PROPERTY SF ANNUAL SALES SALES/SF ANNUAL + NNN RENT TOTAL RENT $/SF HEALTH RATIO
SAVE MART CENTER 48,316 $22,118,654 $457.79 $599,019 $12.40 2.71%
SAVE MART SUPERMARKETS SALES GROWTH AT SAVE MART CENTER
YE JUN-17 YE JUN-16 YE JUN-15 YE JUN-14 YE JUN-13 4YR. SALES GROWTH ANNUAL GROWTH
$457.79 $450.04 $424.94 $398.03 $380.90 20.19% 5.05%
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CALIFORNIA GROCERY-ANCHORED RETAIL CENTER
DIVERSE SHOP TENANT MIX
The Center offers a strong mix of national, regional, and local tenants including Starbucks Coffee, Chase Bank, H&R Block, Baskin Robbins, Papa Murphy’s, and La Hacienda Taqueria.
POSITIVE INCOME GROWTH FROM BELOW MARKET RENTS
Several tenants at the shopping center are paying below market rents with a strong operating history. Rollover and mark-to-market of these rents is projected to grow NOI nearly 20% over the hold period.
INVESTMENT HIGHLIGHTS (CONTINUED)
ATTRACTIVE IN-PLACE CASH FLOW WITH
STRONG TENANT DEMAND
The Property is 100% leased with a strong operating history, demonstrating strong tenant demand and offering investors attractive in-place cash flow.
EXCELLENT VISIBILITY, LOCATION AND ACCESS
Save Mart Center is ideally located right off of Interstate-5 and provides pylon signage to the highway exposing the Property to nearly 95,000 vehicles per day. Harlan Rd. and Lathrop Rd. provide further visibility to over 20,000 vehicles on a daily basis.
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SAVE MART CENTER LATHROP, CALIFORNIA
LOCATION MAP
SAVE MART CENTER
MAJOR AIRPORTS:
OAKLAND INT’L AIRPORT (OAK) 57 Miles
SACRAMENTO INT’L AIRPORT (SAC) 62 Miles
SAN JOSE INT’L AIRPORT (SJC) 70 Miles
SAN FRANCISCO INT’L AIRPORT (SFO) 76 Miles
SFO
SJC
SMF
OAK
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CALIFORNIA GROCERY-ANCHORED RETAIL CENTER
94,172VEHICLES PER DAY
94,172VEHICLES PER DAY
LATHROP ROAD
13,661VEHICLES PER DAY
LATHROP ELEMENTARY
SCHOOL
LOGISTICS CENTER
LATHROP FIRE DEPARTMENT
DEMOGRAPHICSSAVE MART CENTER 3-MILE 5-MILE
2022 POPULATION PROJECTION 40,212 91,702
2017 POPULATION ESTIMATE 37,111 86,283
POPULATION % GROWTH (2017-2022) 8.4% 6.3%
2017 EST. AVERAGE HOUSEHOLD INCOME $79,758 $75,176
N
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SAVE MART CENTER LATHROP, CALIFORNIA
INVESTMENT HIGHLIGHTS (CONTINUED)
STRONG DEMOGRAPHICS WITH AN EXPANDED DRAW
Over 86,000 resident located within a 5-mile radius of the Property with average household
incomes exceeding $75,000.
INSTITUTIONALLY MANAGED ASSET
The Property has been meticulously maintained by institutional ownership significantly reducing
the need for future capital expenditures.
UNENCUMBERED ASSET
The Property is being delivered free and clear of existing financing, providing the opportunity to take advantage of the historically low interest rate
environment and enhanced leveraged returns.
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CALIFORNIA GROCERY-ANCHORED RETAIL CENTER
STE TENANT SF % NRA LEASE EXP.
A1 Advance America 900 1.1% Dec-19
A2 Eyebrow Masters 900 1.1% Oct-20
A3 Chase Bank 4,200 5.2% Feb-21
B1 Cigarette City 1,000 1.2% Oct-22
B2 La Hacienda Taqueria 1,000 1.2% May-18
B3 Metro PCS 1,000 1.2% Sep-22
B4 H&R Block 1,000 1.2% Apr-19
C1 Mikasa Japanese Bistro 2,257 2.8% Feb-22
C2 Huan Nguyen, DDS 1,476 1.8% Mar-22
C3 Lathrop Beauty Salon 1,120 1.4% Apr-18
C4 Exclusive Wireless 1,470 1.8% Sep-19
C5 Global Nails 1,120 1.4% Jan-18
C6 Boost Mobile 1,400 1.7% Nov-22
C7 MX Donuts 1,120 1.4% Sep-22
C8 Papa Murphy's 2,030 2.5% Mar-19
MJR1 Save Mart Supermarkets 48,316 59.9% Oct-25
PAD A1 Starbucks Coffee 1,702 2.1% Feb-26
PAD A2 China Wok Express 1,200 1.5% Dec-20
PAD A3 Milano Pizza 1,500 1.9% Oct-20
PAD A4 Dollar One Only Store 1,929 2.4% Mar-19
PAD B1/B2 Rasoi 2,650 3.3% Oct-22
PAD B3 Baskin Robbins 1,350 1.7% Jul-20
TOTAL AVAILABLE SF 0 0.0%
TOTAL OCCUPIED SF 80,640 100.0%
TOTAL OVERALL SF 80,640
INVESTMENT OVERVIEW
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SAVE MART CENTER LATHROP, CALIFORNIA
SITE PLAN
HARLAN RD
PAD
A
DRIVE-T
HRU
A2
A3
A1
B1
C1
C2
C3
C4C5C6
C7
C8
B3
B2
B1
A1
A4A
3A2
B2
B3
B4
PA
D B
SHOPS A SHOPS B
SH
OP
S C
Sales ±$1,420/SF
Approx. $46M in Deposits
(Avg. 35%+ Growth Per Annum)
Sales ±$455/SF
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CALIFORNIA GROCERY-ANCHORED RETAIL CENTER
©2017 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
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www.hfflp.com
GLEB LVOVICH949.798.4115
[email protected] RE Lic. #01496699
BRYAN LEY310.407.2120
[email protected] RE Lic. #01458927
ERIC KATHREIN415.510.6961
[email protected] RE Lic. #01896107
DOUGLAS CORDSCommercial Retail Associates, Inc.
CA RE Lic. #01264420
BRYAN CIFRANICCommercial Retail Associates, Inc.
CA RE Lic. #01809130
MARK DEGIORGIO949.798.4138
[email protected] RE Lic. #02026853
PETER SMYSLOWSKI415.276.6950
[email protected] RE Lic. #01301231
INVESTMENT SALES ADVISORS
MARKET & LEASING EXPERTSASSOCIATE DEBT GUIDANCE
SAVE MART CENTERA HIGH-PERFORMING, GROCERY-ANCHORED RETAIL CENTER
LOCATED IN NORTHERN CALIFORNIA