1970 W. WhittierLa Habra, CA 80631
Union Bank – La Habra, CA
Confidential Offering Memorandum
A-Rated Investment Grade Tenancy | Affluent Orange County Market | Recently Exercised 5-Year Lease
➢ Dense Infill Market
➢ Rental Increases of 7.5% every 2.5 years
➢ $165MM in Branch Deposits
➢ Outparcel to an Albertsons Anchored Center
➢ Dual Lane Drive-thru ATM
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Table of Contents
Investment Summary 03
Location Overview 06
Tenant Overview 12
Photography 14
JLL Contacts 16
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Investment SummaryUnion Bank – La Habra, CA
Summary
Union Bank
Union Bank | La Habra, CA
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. 4
Investment Summary
JLL is pleased to offer for sale the fee-simple interest in a freestanding Union Bank (the “Property” or “Asset”) located in La Habra, California. Union Bank (the “Tenant”) is
backed by A-rated investment grade credit while the subject location ranks in the top 30% of all Union Banks within Orange County by total deposits with significant growthover the past five years. The Tenant has approximately 5 years remaining on the lease after extending their 5-year option, with attractive rental increases when the option
term begins in August 2020 and an additional rent bump halfway through the term. The Property is located in the affluent Orange County market in the city of La Habra, with
over 61,000 residents in the immediate area. Situated in an Albertsons anchored center, the Property sits at the primary retail intersection in La Habra seeing over 71,000VPD. The Tenant is under an ideal absolute triple-net (“NNN”) lease with no landlord responsibilities. This attractive Asset presents investors with an opportunity for secure,
growing cash flows with immediate upside backed by investment grade credit in the affluent Southern California market.
PROPERTY SUMMARYINVESTMENT HIGHLIGHTS
• The Asset is subject to a NNN lease with a recently extended 5-year option for atotal of 5.7 years remaining. There is an additional 7.5% increase in 2.5 years,providing immediate yield upside.
• The Tenant is backed by investment-grade credit (Moody’s: A2). The subject branchlocation’s total deposits rank in the top 30% for Union Banks in Orange County,growing at a healthy CAGR over the past five years.
• The Property sits at one of the most attractive retail corners within the La Habrasubmarket at the intersection of Whittier and Beach Boulevards (71,000+ VPD) andis situated as an outparcel to an Albertsons anchored center.
• The Property provides ease-of-access to customers via its dual lane drive thru-ATMat a highly trafficked intersection.
• The surrounding market features dense demographics with over 145,000 residentsand over 44% of households boasting average incomes of over $100,000 within a 3-mile radius,
• The Brea/La Habra submarket has seen declining retail vacancy withstable/increasing rents, indicating the strong tenant demand in the area. Newdeliveries include the brand new Starbucks and In-N-Out directly across the streetfrom Union Bank, highlighting the attractiveness of the Property’s location withinthe area.
Address1970 W. Whittier BoulevardLa Habra, California
Tenant*MUFG Union Bank, N.A.(Moody’s: A2)
Price $5,350,000
Cap Rate 4.33%
NOI1 | Rent PSF $231,650 | $41.00
Lease Type Absolute NNN
Lease Term1 5 years
Lease Expiration 8/5/2025
Square Footage 5,650 SF
Site Size 0.59 acres
Year Built 2000
Guaranty Corporate
Owner Interest Fee Simple
Parking 51 spaces
Rental Increases2 7.5% Every 2.5 years*
Renewal Options One 5-year option (7.5% rent increase)
*Backed by MUFG U.S. with A2 credit rating
(1) Option Rent commences August 6, 2020 - $231,650
(2) Rent adjusts by 7.5% on February 7, 2023 - $249,023.75
$5,350,000Asking Price
4.33%Cap Rate
Union Bank | La Habra, CA
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Property Overview
o Union Bank is located on an outparcel to the Albertsons anchored mall at the corner ofWhittier and Beach Boulevards. The intersection sees over 71,000 VPD in aggregate andserves as the primary retail strip within La Habra.
o In addition to benefitting from the visibility at the highly trafficked intersection in LaHabra’s downtown, the bank’s location also benefits from neighboring credit tenants likeStarbucks, Walgreens, In-N-Out and more…making this bank a convenient location forresidents within the area.
Bank Deposits
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43
Deposits (
$m
illio
ns)
Orange County Union BanksRanked by Deposits ($millions)
1970 W. Whittier
$98
$121 $124 $128 $128
$144
$164
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2014 2015 2016 2017 2018 2019 2020
Deposits ($millions)Union Bank - 1970 W. Whittier
8.96% CAGR
o The subject Union Bank ranks in the top 30% as measured by deposits relative to other Union Banks in Orange County. Deposits have grown at a 8.96% CAGRsince 2014, a healthy figure indicating that the local customer base continues to find value in the subject branch location.
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Market OverviewUnion Bank – La Habra, CA
Location
6
Union Bank
Union Bank | La Habra, CA
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Location Overview – Orange County, CA
Orange County, CA
3.2MPOPULATION
6thLARGEST COUNTY
IN THE U.S.
3.3%UNEMPLOYMENT
RATE
Known for its high quality of life with its convergence of beautiful beaches, a high
quality executive housing stock, thriving economy, and direct access to major
transportation networks, Orange County proves to be an ideal location for
commercial properties due to the perpetual demand for this region and its world-
class amenities. In addition, as California has become the world’s fifth largest
economy, Orange County has developed into an economic powerhouse of its own.
With a total population of 3.2 million people, Orange County is the sixth largest
county in the nation and has experienced a population growth rate in 2017 that is
more than double the California average of 0.8%. From June 2017 to June 2018,
Orange County added 17,000 jobs and lowered its unemployment rate from 3.7%
to 3.3%. In fact, Orange County boasts the lowest unemployment rate in all of
Southern California.
JLL | 11
Union Bank | La Habra, CA
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Location Overview – La Habra, CA
La Habra, CA
61,789POPULATION
21,000Households
3,000Business Located in
La Habra
Located at Orange County’s northernmost corner, La Habra is 7.3 square miles
with a population of 61,789 and approximately 21,000 households. A quiet
residential community, it is conveniently located within an hour’s drive of many
beaches, mountains, and desert recreation areas. La Habra is bordered by La
Habra Heights to the north, Brea to the east and Fullerton to the south and
southeast. The City of La Habra was founded in 1925 and operates as a General
Law city with a Council- Manager form of government. The city actively promotes
a friendly business environment and as a result, over 3,000 businesses are located
within the city of La Habra. The community is known for an outstanding school
system and attracting visitors through to its park system and nearly 10 golf
courses within 5 miles of the city.
JLL | 11
Union Bank | La Habra, CA
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Location Overview – La Habra, CA
Market Highlights
Deliveries
New retail supply has been limited in the Brea/La Habra submarket in the last ten
years. Since 2010, there has been only 148,529 SF of new product hitting the
submarket which represents 1.62% of current supply.
Vacancy
The Brea/La Habra submarket is regarded as a dense infill area where majority of
deliveries are the result of tear down and rebuild or complete renovation. With increased
tenant demand in the area, this has continued to put downward pressure on vacancy rates
while boosting asking rents to their highest level since 2014.
Absorption
Absorption has more than doubled the net absorption in the submarket since 2010 in a
submarket that is currently 97% occupied, which strongly showcases the tenant demand for
the area.
JLL | 11
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
2014 2015 2016 2017 2018 2019
YTD
Rent vs. Vacancy
Rent PSF Vacancy %
Deliveries SF Vacancy %
Deliveries vs. Vacancy
Vacancy %
Union Bank | La Habra, CALocation Overview – La Habra, CA
Local Aerial.
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Whittier
Christian
School
La Habra High School
Whittier Blvd.: 39,600 VPD
N B
ea
ch B
lvd
.: 3
1,5
00
VP
D
1-mile 3-mile 5-mile
2019 Population 23,842 145,566 430,219
Households 7,550 46,751 133,403
Average HHI $106,716 $111,653 $107,313
Median HHI $86,040 $87,386 $83,475
2019 Households by IncomeLess than $35,000 20.6% 17.2% 18.5%
$35,000 - $49,999 7.5% 8.9% 9.3%
$50,000 - $74,999 15.4% 16.2% 16.4%
$75,000 - $99,999 12.8% 13.6% 14.2%
More than $100,000 43.7% 44.1% 41.5%
Union Bank is located on an outparcel to the Albertsons anchoredmall at the corner of Whittier and Beach Boulevards. Theintersection sees over 71,000 VPD in aggregate and serves as theprimary retail strip within La Habra.
Union Bank | La Habra, CALocation Overview – La Habra, CA
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Immediate Aerial
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Tenant OverviewUnion Bank – La Habra, CA
Tenant
Union Bank | La Habra, CA
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Tenant Overview
o Union Bank (“The Tenant”) is a part of MUFG U.S., the U.S financial and bank holding company that is backed by the larger Japanese banking
company, Mitsubishi UFJ Financial Group (“MUFG”). MUFG is one the largest comprehensive financial groups in the world, with MUFG U.S. as the 11th
largest among U.S. banks with combined total assets of $337 billion as of year-end 2018.
o There are 377 bank branch locations nationwide, with a strong footprint in affluent West Coast markets represented by Union Bank and additional
national reach via the PurePoint Financial branch locations. Union Bank has 245 branch locations in California and is ranked #4 in in the state by
total deposit market share with strong brand loyalty through their 150 years of operation.
o MUFG U.S. has diversification across business segments as illustrated by their earnings mix, with a focus on Regional Banking, making up 48% of
their net income. The Regional Banking segment provides banking products and services to individual and business customers.
48%
38%
7%
4%3%
% of 2018 Net Income by Business Segment
Regional Banking
Investment Banking
Other
Transaction Banking
Securities
$337 Billion in Assets
11th Largest Bank
in the U.S.
4th Largest Bank
in California
A2
Credit Rating
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Union Bank – La Habra, CA
Photography
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Union Bank | La Habra, CA
16
JLL Contacts
ADVISORS
4000 MacArthur Blvd, Suite 1500 | Newport Beach, CA 92660
www.us.jll.com/capitalmarkets
Copyright © Jones Lang LaSalle IP, Inc. 2020This publication is the sole property of Jones Lang LaSalle and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle.
The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information.
We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance
on this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.
Contact Information
Adam FriedlanderDirector
+1 949 527 4978
LEASING EXPERT
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+1 909 702 3367
Sofi ChoiSenior Vice President
+1 650 480 2234
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