Westside Plaza - f.tlcollect.com · Westside Plaza EXECUTIVE SUMMARY | 5 Property Description...
Transcript of Westside Plaza - f.tlcollect.com · Westside Plaza EXECUTIVE SUMMARY | 5 Property Description...
Westside Plaza42015–42065 10th Street West,Lancaster, California
KEN MCLEODFirst Vice President+1 310 550 2515Lic. [email protected]
TIM KURUZARAssociate+1 310 550 2671Lic. 01778384 [email protected]
EXCLUSIVE AGENTS:
CAPITAL MARKETS | Investment Properties
Westside Plaza
Westside Plaza
Table of ContentsEXECUTIVE SUMMARY | 1
MARKET & ASSET OVERVIEW | 2
FINANCIALS | 3
CBRE, Inc. operates within a global family of companies with many subsidiaries
and/or related entities (each an “Affiliate”) engaging in a broad range of com-
mercial real estate businesses including, but not limited to, brokerage services,
property and facilities management, valuation, investment fund management
and development. At times different Affiliates may represent various clients with
competing interests in the same transaction. For example, this Memorandum
may be received by our Affiliates, including CBRE Investors, Inc. or Trammell
Crow Company. Those, or other, Affiliates may express an interest in the property
described in this Memorandum (the “Property”) may submit an offer to purchase
the Property and may be the successful bidder for the Property. You hereby
acknowledge that possibility and agree that neither CBRE, Inc. nor any involved
Affiliate will have any obligation to disclose to you the involvement of any Affiliate
in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will
act in the best interest of the client(s) it represents in the transaction described
in this Memorandum and will not act in concert with or otherwise conduct its
business in a way that benefits any Affiliate to the detriment of any other offer or
prospective offer or, but rather will conduct its business in a manner consistent
with the law and any fiduciary duties owed to the client(s) it represents in the
transaction described in this Memorandum.
This is a confidential Memorandum intended solely for your limited use and
benefit in determining whether you desire to express further interest in the ac-
quisition of the Property.
This Memorandum contains selected information pertaining to the Property and
does not purport to be a representation of the state of affairs of the Property or
the owner of the Property (the “Owner”), to be all-inclusive or to contain all or
part of the information which prospective investors may require to evaluate a
purchase of real property. All financial projections and information are provided
for general reference purposes only and are based on assumptions relating to
the general economy, market conditions, competition and other factors beyond
the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions
and other information provided and made herein are subject to material varia-
tion. All references to acreages, square footages, and other measurements are
approximations. Additional information and an opportunity to inspect the Prop-
erty will be made available to interested and qualified prospective purchasers.
In this Memorandum, certain documents, including leases and other materials,
are described in summary form.
These summaries do not purport to be complete nor necessarily accurate de-
scriptions of the full agreements referenced. Interested parties are expected
to review all such summaries and other documents of whatever nature inde-
pendently and not rely on the contents of this Memorandum in any manner.
Neither the Owner or CBRE, Inc, nor any of their respective directors, officers,
Affiliates or representatives make any representation or warranty, expressed or
implied, as to the accuracy or completeness of this Memorandum or any of its
contents, and no legal commitment or obligation shall arise by reason of your
receipt of this Memorandum or use of its contents; and you are to rely solely
on your investigations and inspections of the Property in evaluating a possible
purchase of the real property.
The Owner expressly reserved the right, at its sole discretion, to reject any or
all expressions of interest or offers to purchase the Property, and/or to termi-
nate discussions with any entity at any time with or without notice which may
arise as a result of review of this Memorandum. The Owner shall have no legal
commitment or obligation to any entity reviewing this Memorandum or making
an offer to purchase the Property unless and until written agreement(s) for the
purchase of the Property have been fully executed, delivered and approved by
the Owner and any conditions to the Owner’s obligations therein have been
satisfied or waived.
By receipt of this Memorandum, you agree that this Memorandum and its con-
tents are of a confidential nature, that you will hold and treat it in the strictest
confidence and that you will not disclose this Memorandum or any of its con-
tents to any other entity without the prior written authorization of the Owner or
CBRE, Inc. You also agree that you will not use this Memorandum or any of its
contents in any manner detrimental to the interest of the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing
the Property, kindly return this Memorandum to CBRE, Inc.
Affiliated Business Disclosure & Confidentiality Agreement
Westside Plaza Executive Summary
Westside Plaza
EXECUTIVE SUMMARY | 4
Investment Summary
CBRE is pleased to offer Westside Plaza, a rare opportunity to own newly constructed
multi-tenant retail in the Antelope Valley Market of Los Angeles County. Westside Plaza is
located on the signalized NW corner of 10th St. W and Columbia Way, adjacent to the 14
FWY on and off ramps. The center provides good ingress and egress from both streets.
This 11 tenant center is comprised of an internet resistant tenant mix, staggered lease roll-
over, and a 2,400 square foot development pad opportunity. Westside Plaza is 88% occu-
pied, providing additional income opportunity through minimal lease up. Tenants include a
gym, 2 medical uses, a salon, and a real estate escrow company. The property will also be
delivered free and clear of any debt obligations.
PROPERTY NAME Westside Plaza
ADDRESS 42015 – 42065 10th Street West Lancaster, CA 93534
PRICE $6,950,000
PRICE/SQUARE FOOT $263.75
CAP RATE (ACTUAL) 7.85%
CAP RATE (PROFORMA) 8.82%
BUILDING SIZE ± 28,751 SF
LAND AREA ± 126,724 SF
OCCUPANCY 87%
YEAR BUILT 2009
ZONING LRLI
DEMOGRAPHICS (1 MILE)
Average Household Income = $81,132Average Housing Value = $305,077
Property Summary
Westside Plaza
EXECUTIVE SUMMARY | 4
Westside Plaza
EXECUTIVE SUMMARY | 5
Property Description
Westside Plaza is an 87% occupied 28,751 square foot traditional retail strip center on
2.91 acres of land in the city of Lancaster, CA. The property is located on the NW corner
of 10th St. W and Columbia Way at a signalized intersection. With newer construction and
a staggered lease roll over, Westside Plaza provides a management friendly opportunity to
own multi-tenant retail in Southern California. Additional NOI growth will be realized through
lease up, rental rate upside, and a development pad. An internet resistant tenant mix
provides the stability investors crave.
Investment Highlights
Pad For Development There is a vacant pad for development on the hard corner of the shopping center. A new
owner will have the opportunity to develop a building up to 2,400 square feet with a drive
through.
Freeway AccessWestside Plaza is located near the 14 Freeway on/off ramps of Avenue M/Columbia Way.
Main on Main IntersectionWestside Plaza is located at the signalized intersection of 10th Street West & Avenue M /
Columbia Way.
Diverse Tenant MixThere is a diverse mix of internet resistant retail and office tenants. This attracts a broad
customer base and increases synergy between tenants.
Newer ConstructionBuilt in 2009 and well maintained, there is little to no deferred maintenance.
Westside Plaza
EXECUTIVE SUMMARY | 5
Westside Plaza Market & Asset Overview
EXECUTIVE SUMMARY | 7
Market Summary
Lancaster OverviewLancaster is a charter city in northern Los Angeles County, in the Antelope Valley of the
western Mojave Desert in Southern California. Lancaster currently ranks as the 30th largest
city in California, and the 148th largest city in the United States. Lancaster is part of a twin
city complex with its southern neighbor Palmdale and together they are the principal cities
within the Antelope Valley region and California’s High Desert.
Lancaster is located approximately 70 miles (110 km) north (by highway) of downtown Los
Angeles, near the Kern County line. It is separated from the Los Angeles Basin by the San
Gabriel Mountains to the south, and from Bakersfield and the San Joaquin Valley by the
Tehachapi Mountains to the north.
The population of Lancaster has grown from 37,000 residents at the time of incorporation in
1977, to 157,826 people as of 2012. which makes it the largest city in the California portion
of the Mojave Desert.
Lancaster’s history is rooted in flight; evidenced by the major employers in the area, includ-
ing Edwards Air Force Base, China Lake Naval Air Weapons Station, Lockheed Martin Co.,
Northrop-Grumman, and Boeing. The location’s semi-arid year round climate make it an
ideal location for aircraft testing. It has been the United States’ primary testing and devel-
opment location since the early 1940s.
Lancaster, California
Westside Plaza
MARKET & ASSET OVERVIEW | 7
EXECUTIVE SUMMARY | 8
FIVE-MILE RADIUS THREE- MILE RADIUS ONE-MILE RADIUS
2013 Estimated Population 203,838 50,642 409
2018 Projected Population 218,266 53,739 408
2010 Census Population 192,142 48,154 414
2000 Census Population 151,951 40,938 483
Growth 2010-2013 6.09% 5.17% -1.16%
Growth 2013-2018 7.08% 6.12% -0.38%
2013 Estimated Median Age 32.08 32.77 45.15
2013 Estimated Average Age 34.63 35.62 43.06
2013 Estimated Households 63,227 17,475 146
2018 Projected Households 67,205 18,399 145
2010 Census Households 60,478 16,819 149
2000 Census Households 50,114 14,938 177
Growth 2010-2013 4.55% 3.90% -1.76%
Growth 2013-2018 6.29% 5.29% -0.81%
2013 Est. Average Household Size 3.2 2.88 2.5
2013 Est. Median Household Income $52,383 $50,246 $52,826
2018 Prj. Median Household Income $54,606 $52,703 $57,952
2000 Cen. Median Household Income $44,292 $43,720 $44,961
2013 Est. Average Household Income $66,849 $66,521 $81,132
2013 Estimated Per Capita Income $20,735 $22,954 $28,947
2013 Estimated Housing Units 69,357 19,433 163
2013 Estimated Occupied Units 63,227 17,475 146
2013 Estimated Vacant Units 6,129 1,958 17
2013 Est. Owner Occupied Units 38,984 8,950 105
2013 Est. Renter Occupied Units 24,243 8,525 41
2013 Est. Median Housing Value $221,453 $235,144 $272,910
2013 Est. Average Housing Value $245,927 $269,784 $305,077
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Westside Plaza
MARKET & ASSET OVERVIEW | 8
EXECUTIVE SUMMARY | 9Westside Plaza
MARKET & ASSET OVERVIEW | 9
EXECUTIVE SUMMARY | 10
Aerial Map
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Westside Plaza
MARKET & ASSET OVERVIEW | 10
10TH STREET WEST
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Ladies FirstFitness & Spa
MyLounge
Suites111/1131,337 SF
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Salon
WeightLoss
Medical
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Proposed Pad
WashingtonW
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Building A42015 10th Street West
Building B42035 10th Street West 42051 10th Street West
EXECUTIVE SUMMARY | 11
Site Plan
Westside Plaza
MARKET & ASSET OVERVIEW | 11
EXECUTIVE SUMMARY | 12
Aerial Map
Westside Plaza
42015–42065 10th Street West, Lancaster, California
Westside Plaza
MARKET & ASSET OVERVIEW | 12
EXECUTIVE SUMMARY | 13
Aerial Map
Westside Plaza
MARKET & ASSET OVERVIEW | 13
Westside Plaza Financials
Westside Plaza
EXECUTIVE SUMMARY | 15
PRICE $6,950,000
PRICE/SQFT $263.75
CAP RATE (CURRENT) 7.85%
CAP RATE (PROFORMA 90% LEASED) 8.82%
CURRENT PROFORMA
GROSS RENT: $685,420 $685,420
LESS: VACANCY: ($115,444) -17% ($68,542) -10%
EXPENSE RECAPTURE: $103,315 $124,204
TOTAL RENT: $673,292 $741,083
BILLBOARD INCOME: $10,000 $10,000
LESS: EXPENSES: ($138,005) ($138,005)
NET INCOME: $545,287 $613,078
Financials
Pricing Analysis
Westside Plaza
FINANCIALS | 15
EXECUTIVE SUMMARY | 16
SUITE TENANT SQ.FT. MONTHLY RENT RENT/SQFT LEASE START DATE
LEASE END DATE LEASE TYPE OPTIONS
B-1/101-1237 Ladies 1st 9,732 $19,853.28 $2.04 May 2009 April 2019 NNN 10 yrs
B-2/105 My Lounge 3,180 $5,565.00 $1.75 April 2014 March 2018 NNN 3 yrs
B-2/113-115 Federal Escrow 1,858 $3,530.20 $1.90 Aug 2009 Aug 2015 NNN
B-2/101-103 Pampered Nails 1,230 $2,091.00 $1.70 Feb 2011 Jan 2016 NNN 10 yrs
B-2/104 Vacant 1,337 $2,540.30 $1.90 NNN
B-2/115-117 ATC Taekwondo 1,230 $1,783.50 $1.45 May 2010April 2013
MTMNNN
One (1) - Two (2) YearFair Market - 3% annual increases
B-2/105-107 Mt. Sinai Center 1,337 $3,543.05 $2.65 Jan 2013 Oct 2017 NNN 5 yrs (2x5)
B-2/109-111 Orthopedic 1,337 $2,406.60 $1.80 June 2014 June 2017 NNN
Building CWashington Wealth Management
3,490 $4,537.00 $1.30 Oct 2014 Sept 2019 GrossTwo (2) - Five (5) YearCPI 3% min - 5% Max annual increases
Building D Aladdin Bail Bonds 1,620 $4,188.43 $2.59 April 2011 March 2016 NNNOne (1) - Five (5) YearFair Market - 3% annual increases
Vacant Pad 2,400 $7,080.00 $2.95 NNN
TOTALS 28,751 $57,118.36
13.00% VACANT 3,737 $9,620.30
87.00% OCCUPIED 25,014 $47,498.06
RENT ROLL
Westside Plaza
FINANCIALS | 16
42015–42065 10th Street West, Lancaster, California
CA
PITA
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ent Prop
erties
CBRE © 2015 All Rights Reserved. All information included in this proposal pertaining to CBRE including but not limited to its operations, employees, technology and clients are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior written consent of CBRE. This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agree-ment or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto.
This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
Westside PlazaEXCLUSIVE AGENTS
KEN MCLEODFirst Vice President+1 310 550 2515Lic. [email protected]
TIM KURUZARAssociate+1 310 550 2671Lic. 01778384 [email protected]