BIG BEAR LAKE, CA
The Village GatewayCorner
OFFERING MEMORANDUM
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, 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. Marcus & Millichap 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, 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 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. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
BIG BEAR LAKE, CA
The Village Gateway Corner
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR
MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
NON-ENDORSEMENT NOTICE
Section 1 PRICING AND FINANCIAL ANALYSIS
Section 2 PROPERTY DESCRIPTION
Section 3 RECENT SALES
TABLE OF CONTENTS
The Village Gateway CornerBIG BEAR LAKE, CA
The Village Gateway CornerBIG BEAR LAKE, CA
PRICING AND FINANCIAL ANALYSIS
Price $1,654,793
Down Payment 40% $661,917
Price per Square Foot (GLA) $251.99
Gross Leasable Area (GLA) 6,567
Year Built 1979
Lot Size 0.63 AC
VITAL DATA
CAP Rate - Current 6.00%
Net Operating Income - Current $99,288
Net Cash Flow After Debt Service - Current $38,919
Total Return - Current 9.48% / $62,747
1
Major Tenants
PRICING AND FINANCIAL ANALYSIS
Tenant Name
The Village Pizza
The Tea & Coffee Exchange
Our Town Liquor
The Village Gateway CornerBIG BEAR LAKE, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
OFFERING SUMMARY
2
PRICING AND FINANCIAL ANALYSISThe Village Gateway CornerBIG BEAR LAKE, CA
Existing Financing
Loan Type Free and Clear
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
Proposed Financing
First Trust DeedLoan Amount $992,876
Loan Type Proposed New
Interest Rate 4.5%
Amortization 30 Years
Debt Coverage Ratio 1.64
FINANCING
Our Town Liquor: 22.84%
Tea & Coffee Exchange: 28.43%
Village Pizza: 48.73%
3
Comments
*Real Estate Taxes have been adjusted to reflect estimated sale price and adjustment.
PRICING AND FINANCIAL ANALYSISThe Village Gateway CornerBIG BEAR LAKE, CA
Current Per SF
Real Estate Taxes* $20,477 $3.12
Insurance $3,437 $0.52
CAM
Utilities $0 $0.00
Repairs & Maintenance $7,980 $1.22
Contract Services $1,013 $0.15
TOTAL CAM $8,993 $1.37
Management Fee $4,200 $0.64
TOTAL EXPENSES $37,107 $5.65
Tenants (% OF GLA)
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
EXPENSES
4
Comments*Real Estate Taxes have been adjusted to reflect estimated sale price and adjustment.
PRICING AND FINANCIAL ANALYSISThe Village Gateway CornerBIG BEAR LAKE, CA
Current Per SFBase Rent
Occupied Space $99,288 $15.12
GROSS POTENTIAL RENT $99,288 $15.12
Expense Reimbursements
Real Estate Taxes* $20,477 $3.12
Insurance $3,437 $0.52
CAM $8,993 $1.37
Management Fee $4,200 $0.64
Total Expense Reimbursements $37,107 $5.65
GROSS POTENTIAL INCOME $136,395 $20.77
EFFECTIVE GROSS INCOME $136,395 $20.77
Total Expenses $37,107 $5.65
NET OPERATING INCOME $99,288 $15.12
Gross Leasable Area (GLA) 6,567 SF
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
INCOME & EXPENSES
5
PRICING AND FINANCIAL ANALYSISThe Village Gateway CornerBIG BEAR LAKE, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
Comments
1. GLA for the commercial space of The Village Pizza restaurant is, as stated in the Lease, 2,730 square feet. The square footage in the above rentroll is 3,200 square feet, which - per the current Owner - incorporates a one-unit, upstairs residency currently occupied by the owner of the pizzashop. The base rent as stated above is the total base rent for the tenant (currently no additional rent collected for the residence).
2. Base Rent for the Village Pizza and Our Town Liquor, per the Leases, shall be increased annually on February 1st by the cost of living for theprevious calendar year or determined by the U.S. Department of Labor, Bureau of Labor Statistics, Southern California Regional Index for all averageitems. An estimated 2% annual CPI is used for underwriting purposes.
3. Tenant NNN Reimbursement pro-rata shares/percentages are based on specific language in the Leases.
4. Base Rent for the Tea & Coffee Exchange, per the Leases, is a minimum $2,200 per month, plus an additional Percentage Rent of 8% of the grosssales in excess of $27,500 each month. Annual Rent as stated in the above rent roll is estimated based on recent sales figures and projectedgrowth.
TENANT SUMMARY
Tenant GLA % ofGLA
LeaseCommence
LeaseExpire
AnnualRent
Rent/SF
ChangesOn
ChangesTo
Options LeaseType
% of NNNReimb.
Village Pizza 3,200 48.73% 07/01/2002 06/30/2022 $39,048.00 $12.20 02/01/2017 $39,828.96 NNN 40%
Our Town Liquor 1,500 22.84% 01/28/2016 01/31/2026 $27,030.00 $18.02 02/01/2017 $27,570.60 (1) 5-Year NNN 25%
Tea & Coffee 1,867 28.43% 01/01/2012 01/01/2022 $32,659.00 $17.49 (3) 5-Year NNN 35%
TOTAL VACANT
TOTAL 6,567 100.00% $98,737.00 $67,399.56
TOTAL 6,567 100.00% $98,737.00 $67,399.56
6
PRICING AND FINANCIAL ANALYSISThe Village Gateway CornerBIG BEAR LAKE, CA
For The Year Beginning Year 1Jan 2016
Year 2Jan 2017
Year 3Jan 2018
Year 4Jan 2019
Year 5Jan 2020
Year 6Jan 2021
Year 7Jan 2022
Year 8Jan 2023
Year 9Jan 2024
Year 10Jan 2025
Tenant(s) Name VillagePizzaTea &Coffee
Exchange
Total Number of Tenants 2
Total Square Feet 5,067
Total Percentage 77.2%
Cumulative Percentage 77.2%
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
Percentage of SF Expiring Number of Tenants Expiring Cumulative % of SF Expiring
0%
10%
20%
30%
40%
50%
60%
70%
80%
Tota
l P
roje
ct
Squa
re F
oota
ge
0
1
2
Num
ber
of Tenants
Jan 20160%
Jan 20170%
Jan 20180%
Jan 20190%
Jan 20200%
Jan 20210%
Jan 202277%
Jan 20230%
Jan 20240%
Jan 20250%
LEASE EXPIRATION SUMMARY
Any projections, opinions, assumptions or estimates used here within are for example purposes only and do not represent the current or future performance of the property.
40568 Village Drive
Big Bear Lake, CA 92315
Price $1,654,793
Down Payment 40% $661,917
Gross Leasable Area (GLA) 6,567
Price/SF $251.99
CAP Rate - Current 6.00%
Lot Size 0.63 AC
Year Built 1979
FIRST TRUST DEED
Loan Amount $992,876
Loan Type Proposed New
Interest Rate 4.5%
Amortization 30 Years
Annualized Operating Data
Income CurrentBase Rent
Occupied Space $99,288
Gross Potential Rent $99,288
Expense Reimbursements $37,107
Gross Potential Income $136,395
Effective Gross Income $136,395
Total Expenses $37,107
Net Operating Income $99,288
Debt Service $60,369
Debt Coverage Ratio 1.64
Net Cash Flow After Debt Service 5.88% / $38,919
Principal Reduction $23,828
Total Return 9.48% / $62,747
7
Location
PRICING AND FINANCIAL ANALYSIS
Financing
The Village Gateway CornerBIG BEAR LAKE, CA
ExpensesReal Estate Taxes* $20,477
Insurance $3,437
CAM
Utilities $0
Repairs & Maintenance $7,980
Contract Services $1,013
TOTAL CAM $8,993
Management Fee (% of EGI) 3.1% / $4,200
TOTAL EXPENSES $37,107
EXPENSES/SF $5.65
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
Loan information is time sensitive and subject tochange. Contact your local Marcus & Millichap CapitalCorporation representative.
FINANCIAL OVERVIEW
The Village Gateway CornerBIG BEAR LAKE, CA
PROPERTY DESCRIPTION
Investment Highlights
■ First Intersection Greeting Visitors to Big Bear; GreatExposure to Inbound Traffic
■ Net Leased Tenants With Annual Increases
■ Year-Over-Year Store Sales Growth
■ Long Term Tenants: 2/3 of Businesses In Place for 20+ Years
9
PROPERTY DESCRIPTIONThe Village Gateway CornerBIG BEAR LAKE, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
INVESTMENT OVERVIEW
Marcus & Millichap is pleased to exclusively market for sale The Village Gateway Corner, a three-tenant retail strip located on the hard corner of a heavily trafficked intersection in Big Bear Lake, CA. The property contains a synergistic mix of net-leased tenants, including Village Pizza, Our Town Liquor Store, and the newly remodeled Tea & Coffee Exchange. This opportunity includes annual rent increases, long term tenancy by two of the tenants, and a personal guarantee on the lease for the third tenant. The property controls one of the most strategic corners in the area, where Highway 18 abruptly splits into Big Bear Boulevard and Village Drive and travelers have the option of either staying on the highway (the faster route to the mountain resort) or continuing into the main village of Big Bear Lake. As the first stop for weekend supplies coming into town, and the last chance for food and coffee before the drive down to lower elevations, the Village Gateway Corner offers investors the opportunity to acquire irreplaceable real estate in a highly sought after destination.
Big Bear Lake is a unique mountain resort community, nestled in the mountains of the San Bernardino National Forest, about 100 miles northeast of Los Angeles. About 21,000 residents make their home in Big Bear Lake full time, with hundreds of thousands of tourists visiting annually during the town’s two peak tourism seasons – winter and summer. The Big Bear community is a destination for countless recreational opportunities, including fishing, water sports, hiking, mountain biking, horseback riding, tours, and winter sports. Big Bear also features a public zoo, a nine-hole golf course, seven public campgrounds, great restaurants, entertainment, abundant shopping, and one of the nation’s only alpine solar observatories.
The Offering
Property The Village Gateway Corner
Property Address 40568 Village Drive
Big Bear Lake, CA 92315
Assessor's Parcel Number 0308-144-17
Zoning SP, Big Bear Lake
Site Description
Number of Stories One
Year Built 1979
Gross Leasable Area (GLA) 6,567 SF
Lot Size 0.63 AC
Type of Ownership Fee Simple
Parking Ratio 4.55/1,000 SF
10
PROPERTY DESCRIPTIONThe Village Gateway CornerBIG BEAR LAKE, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
PROPERTY SUMMARY
11
PROPERTY DESCRIPTIONThe Village Gateway CornerBIG BEAR LAKE, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
PROPERTY PHOTOS
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PROPERTY DESCRIPTIONThe Village Gateway CornerBIG BEAR LAKE, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
Local Map Regional Map
AREA MAPS
13
PROPERTY DESCRIPTIONThe Village Gateway CornerBIG BEAR LAKE, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
AERIAL PHOTO
The Village Gateway CornerBIG BEAR LAKE, CA
RECENT SALES
1)2)3)4)
The Village Gateway CornerVillage Drive RetailCiti BankVillage MallBig 5 Sporting Goods
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RECENT SALESThe Village Gateway CornerBIG BEAR LAKE, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
RECENT SALES MAP
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Subject VillageDriveRetail
CitiBank
VillageMall
Big5
SportingGoods
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Subject CitiBank
Big5
SportingGoods
Average Price per Square Foot
16
RECENT SALESThe Village Gateway CornerBIG BEAR LAKE, CA
Average Cap Rate
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
CAP RATE AND PRICE PER SF
1
2
The Village Gateway Corner
40568 Village Drive
Big Bear Lake, CA 92315
Village Drive Retail
40764 Village Drive
Big Bear Lake, CA, CA 92314
Citi Bank
41969 Big Bear Boulevard
Big Bear Lake, CA 92315
Close of Escrow: 06/26/2015
Year Built: 1940
Gross Leasable Area (GLA): 9,000 SF
Sale Price: $1,737,500
Percent Down: 28%
CAP Rate:
Price/SF (GLA): $193.06
Lot Size: 0.5 AC
Subject Property
Year Built: 1979
Gross Leasable Area (GLA): 6,567 SF
Offering Price: $1,654,793
Percent Down 40%
CAP Rate: 6.00%
Price/SF (GLA): $251.99
Lot Size: 0.63 AC
17
Close of Escrow: 04/17/2015
Year Built:
Gross Leasable Area (GLA): 4,708 SF
Sale Price: $2,025,000
Percent Down: 100%
CAP Rate: 4.70%
Price/SF (GLA): $430.12
Lot Size: 0.91 AC
RECENT SALESThe Village Gateway CornerBIG BEAR LAKE, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
RECENT SALES
4
3 Village Mall40729 Village Drive
Big Bear Lake, CA 92315
Big 5 Sporting Goods
41383 Big Bear Boulevard
Big Bear Lake, CA 92315
Close of Escrow: 1/30/2013Year Built: 2012
Gross Leasable Area (GLA): 10,500 SF
Sale Price: $2,650,000
Percent Down:
CAP Rate: 6.60%
Price/SF (GLA): $252.38
Lot Size: 0.92 AC
18
Close of Escrow: 12/23/2013
Year Built: 1980
Gross Leasable Area (GLA): 24,806 SF
Sale Price: $1,977,632
Percent Down:
CAP Rate:
Price/SF (GLA): $79.72
Lot Size: 1.28 AC
RECENT SALESThe Village Gateway CornerBIG BEAR LAKE, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.
RECENT SALES
BIG BEAR LAKE, CA
OFFERING MEMORANDUM
The Village Gateway Corner
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