1. real estate

Sequoia Center
1960-1970 N SEQUOIA AVENUE, SIMI VALLEY, CA 93063
1
Table of Contents
EXCLUSIVELY LISTED BY:
ALEX KOZAKOV
First Vice President
+1 213 613 3031
Lic. 01416489
[email protected]
MAXX COHEN
Associate
+1 213 613 3117
Lic. 01928768
[email protected]
PATRICK WADE
First Vice President
+1 213 613 3071
Lic. 01454690
[email protected]
ERIC ROY
Associate
+1 213 613 3410
Lic. 01943774
[email protected]
INVESTMENT SUMMARY
FINANCIAL OVERVIEW
RENT ROLL
PRICING
DEMOGRAPHICS
LOCATION OVERVIEW
HEATHER GARRETT
Client Services Specialist
+1 213 613 3367
Lic. 01940192
[email protected]
DISCLAIMER
©2015 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no
guarantee, warranty, or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example
only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal
advisors. 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.
CBRE and the CBRE logo are service marks of CBRE Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of
their respective owners.
2
3
Investment Summary
Sequoia Center
1960-1970 N Sequioa Avenue
Simi Valley, CA 93063
HIGHLIGHTS
Stabilized 7-Eleven-Anchored Strip Center in Simi Valley, CA
•
•
•
•
•
PRICE:
$9,300,000
CAP RATE:
5.93%
NOI:
$551,561
BUILDING SIZE SF:
24,293
PRICE/SF:
$382.83
LAND AREA SF:
98,445
Fully stabilized shopping center with excellent current and historical occupancy
7-Eleven has occupied the center since 1984
87% of the GLA is occupied by tenants that have either exercised options or extended leases
Nearly 50% of the GLA has been occupied for over ten years
All tenants are on NNN leases with rental increases and staggered lease expirations,
allowing for minimal management responsibility and higher future return
• Delivered free & clear of debt - ability to secure new financing at today’s historically low
interest rates or purchase all cash
• Over 41% of GLA leased to Urgent Care and other established medical practices:
significant tenant improvements
• Freestanding urgent care pad building with traditional “L” shaped shop space
PERCENT LEASED:
100%
Strategic Retail Location at Attractive Price Point
ZONING:
CPD
YEAR BUILT:
1984
PARKING:
99 Spaces
PARKING RATIO
4.08/1,000 RSF
MAJOR TENANTS:
7-Eleven, Urgent Care, Numero Uno
•
•
•
•
•
•
Strong in-place income (~5.93% cap rate) with scheduled rent increases
Great parking: over 4/1,000 RSF
Affluent community: average household income over $92,000 in a 3-mile radius
Signalized intersection with over 31,000 cars per day and multiple points of ingress and egress
Significant frontage along heavily traveled E Los Angeles Avenue
Within two blocks of numerous elementary and high schools
Executive Summary
CBRE is pleased to offer for sale Sequoia Center - an established 7-Eleven-anchored retail center in the heart of Simi Valley, California.
Sequoia Center offers investors a fully stabilized shopping center with excellent current and historical occupancy, consisting of 24,293 square feet of GLA on 2.26 acres of land.
Strategically located at the signalized intersection of Sequoia Avenue and E Los Angeles Avenue (traffic counts in excess of 25,000 cars per day), the center benefits from multiple
points of ingress and egress and offers tenants and customers ample parking of over 4/1,000 RSF. The center provides investors with an in-place cap rate of nearly 6% with upside
potential.
Sequoia Center benefits from strong historical occupancy from a diverse tenant mix, with 87% of the total square footage having either exercised options or extended leases.
Additionally, 75% of the total square footage has been occupied for over five years, and nearly 50% has been occupied for over ten years, including 7-Eleven, an S&P “A” credit tenant,
which has occupied this center since 1984.
All existing tenants are on NNN leases with staggered lease expirations, providing investors a stabilized current income stream with low management. The center is surrounded by
numerous major retailers and is within two blocks of six elementary schools and three high schools. Sequoia Center will be delivered free and clear of debt, allowing investors the ability
to obtain new financing or purchase all-cash.
Demographics Within 3-Mile Radius
Population
92,000
Avg H.H. Income
$101,368
6
41% of the GLA at Sequoia Center
is leased to Urgent Care and other
established medical practices.
7
8
UE
SEQUOIA AVEN
E LOS ANGELES AVENUE
Traffic Counts
E Los Angeles Avenue
Sequoia Ave
Total
23,276 VPD
8,281 VPD
31,557 VPD
9
Financial Overview
Tenant
SF
%
Lease Term
Begin
End
Jul-19
Jul-84
Option 1
Option 2
7-Eleven
2,400 9.88%
A New Technique
1,200 4.94%
May-04
Dec-16
EMS-BP
Opportunities
3,354 13.81%
Nov-09
Oct-19
KalbeQ Korean BBQ 3,007 12.38%
Sep-11
Apr-18
Etcetera Medical
May-05
Dec-19
Sep-03
A Hidden Fortress
1,680 6.92%
988
4.07%
Begin
Current
Aug-19
Aug-24
Current
Jan-16
Current
Nov-15
Nov-16
Nov-17
Nov-18
RENT ROLL AS OF 4/7/2015
Rental Rates
Monthly
PSF Annually PSF
$6,480 $2.70 $77,760 $32.40
$7,128 $2.97 $85,536 $35.64
$7,841 $3.27 $94,090 $39.20
$2,116 $1.76 $25,391 $21.16
$2,179 $1.82 $26,153 $21.79
$5,366 $1.60 $64,397 $19.20
$5,528 $1.65 $66,335 $19.78
$5,694 $1.70 $68,325 $20.37
$5,865 $1.75 $70,375 $20.98
$6,041 $1.80 $72,486 $21.61
Rental Inc./Options
NNN
2x5 Year Options
$32.40
$77,760
NNN
$769/mo.
3% annually
$21.79
$26,153
NNN
$2,204/mo.
3% annually 1x5 year
$19.78
$66,335
$5,707
$5,865
$6,028
$2,913
$3,000
$3,090
$3,183
$3,278
$1,946
$2,005
$1.90
$1.95
$2.00
$1.73
$1.79
$1.84
$1.89
$1.95
$1.97
$2.03
$68,488
$70,381
$72,330
$34,951
$35,999
$37,079
$38,192
$39,338
$23,356
$24,057
$22.78
$23.41
$24.05
$20.80
$21.43
$22.07
$22.73
$23.42
$23.64
$24.35
NNN
$1,982/mo.
3% annually 1x5 year
$23.41
$70,381
NNN
$1,065/mo.
3% annually
$21.43
$35,999
Dec-16
Current
Apr-16
Apr-17
Current
Jan-16
Jan-17
Jan-18
Jan-19
Current
Jan-16
NNN
$622/mo.
3% annually
$24.35
$24,057
Current
$3,876
$1.85
$45,509 $22.20
NNN
$1,326/mo
$22.20
$46,509
Current
Mar-16
Mar-17
Mar-18
Current
Feb-16
Feb-17
Feb-18
Feb-19
Feb-20
Feb-21
$2,930
$3,048
$3,170
$3,296
$1,879
$1,935
$1,993
$2,053
$2,115
$2,178
$2,243
$2.44
$2.52
$2.64
$2.75
$1.65
$1.70
$1.75
$1.80
$1.85
$1.91
$1.97
$35,166
$36,221
$38,035
$39,557
$22,545
$23,221
$23,918
$24,635
$25,374
$26,135
$26,919
Vacant Seller RG*
2,095 8.62%
COE
1 Year
Numero Uno
1,200 4.94%
Mar-09
Mar-19
Golden Life
Pharmacy(2)
1,140 4.69%
Feb-12
Jan-22
Golden Life
Pharmacy
1,682 6.92%
Sep-09
Nov-16
Current
$2,775
$1.65
$33,305 $19.80
NNN
$1,065/mo
Sequoia Dentistry
1,837 7.56%
Oct-01
Nov-18
Current
Nov-15
Nov-16
Nov-17
$3,032
$3,123
$3,217
$3,314
$1.65
$1.70
$1.75
$1.80
$36,389
$37,480
$38,605
$39,763
$19.81
$20.40
$21.02
$21.65
NNN
$1,131/mo.
Mar-21
Current $9,122
Apr-16 $9,395
Apr-17 $9,677
Apr-18 $9,967
Apr-19 $10,266
Apr-20 $10,574
$2.46
$2.53
$2.61
$2.69
$2.77
$2.85
$109,458
$112,742
$116,124
$119,608
$123,196
$126,892
$29.50
$30.39
$31.30
$32.24
$33.21
$34.20
NNN
$2,308/mo
Urgent Care
3,710 15.27%
Occupied
24,293 100%
Vacant
Total
-
0%
24,293 100%
Apr-88
Proforma
Proforma
Annual PSF Annual Rent
NNNs / Mo.
$48,143
$48,143
$29.30
$30.18
$31.70
$32.96
$19.78
$20.37
$20.98
$21.61
$22.26
$22.93
$23.61
$1.95 $577,714 $23.36
-
-
-
$1.95 $577,714 $23.36
NNN
$760/mo
3% annually 1x5 year
$30.18
$36,221
NNN
$720/mo
3% annually
$20.37
$23,221
$19.80
$33,305
3% annually 1x7 year
$20.40
$37,480
3% annually
$30.39
$112,742
$23.88
$590,163
-
-
$23.88
$590,163
*Seller to guarantee rent of unit + pro rata share of NNNs for 1 year after COE. ProForma rent is next scheduled rental increase for all tenants. All tenants reimburse NNN, however Sequoia Dentistry does not pay any
increase in taxes from sale, and CAMs are capped at 5% YOY.
0
1
Income & Expenses
CURRENT/”IN-PLACE”
In-Place Revenue
Reimbursement Revenue - Sequoia Dentistry
Reimbursement Revenue - All other tenants
Total Gross Revenue
Estimated
Estimated
7.56%
92.44%
Credit Loss / Vacancy Reserve
Estimated
3.00%
Effective Gross Revenue
Expenses
CAMS
Management Fees
Insurance
Property Taxes
Total Operating Expenses
Net Operating Income
Actual
Estimated
Actual
Estimated
3.0%
1.0829%
PER SF
MARKET/”PRO FORMA”
PER SF
$23.78
$24.29
$8.23
$32.59
$590,163
$13,952
$199,951
$804,066
$8.23
$33.10
$0.98
$24,122
$0.99
$767,869
$31.61
$779,944
$32.11
$75,418
$24,000
$16,180
$100,710
$216,308
$551,561
$0.99
$0.67
$4.15
$8.90
$22.70
$24,000
$16,180
$100,710
$216,308
$563,636
$0.99
$0.67
$4.15
$8.90
$23.20
$577,714
$13,952
$199,951
$791,617
$23,749
*Assumes all tenants are NNN; Sequoia Dentistry has Prop 13 protection.
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Demographics
POPULATION
1 - Mile
3 - Mile
5 - Mile
2015 Estimated Population
16,848
91,909
128,247
2020 Projected Population
17,216
95,401
133,686
2010 Census Population
16,659
89,501
124,394
2000 Census Population
16,245
79,515
110,309
Growth 2010-2015
1.14%
2.69%
3.10%
Growth 2014-2020
2.19%
3.80%
4.24%
2015 Estimated Median Age
36.94
37.69
38.59
2015 Estimated Average Age
37.13
37.72
38.21
2015 Estimated Households
5,250
29,483
42,488
2020 Projected Households
5,393
30,610
44,345
2010 Census Households
5,159
28,746
41,211
2000 Census Households
5,076
25,104
35,952
Growth 2010-2015
1.76%
2.56%
3.10%
Growth 2014-2020
2.72%
3.82%
4.37%
2015 Est. Average H.H. Size
3.16
3.09
3.00
2015 Est. Median H.H. Income
$80,615
$85,717
$86,607
2020 Projected Median H.H. Income
$84,925
$92,476
$92,851
2000 Cen. Median H.H. Income
$66,170
$67,120
$69,907
2015 Est. Average H.H. Income
$90,441
$101,368
$104,488
2015 Estimated Per Capita Income
$28,184
$32,518
$34,617
2015 Est. Average Housing Value
$399,637
$448,130
$469,886
16,848
91,909
128,247
- White Population
12,611 (74.9%)
65,864 (71.5%)
93,382 (72.8%)
- Black Population
221 (1.3%)
1,428 (1.6%)
2,106 (1.6%)
- Asian Population
1,225 (7.3%)
8,702 (9.5%)
12,507 (9.8%)
777 (4.6%)
4,601 (5.0%)
6,405 (5.0%)
5,434 (32.3%)
26,263 (28.6%)
32,760 (25.5%)
2015 Estimated Population by Race
- Two Or More Races Population
- Hispanic Population
Simi Valley, CA
Simi Valley, with an estimated population of over 126,400 people, is
the third largest of Ventura County’s ten cities. Occupying an area of
approximately 42 square miles, it is located in Southeast Ventura County,
about 37 miles northwest of downtown Los Angeles. The city was
incorporated in 1969 and has 34 parks, 4 golf courses, and a performing
arts center. Simi Valley is also home to the world-famous Ronald Reagan
Presidential Library.
There are many advantages to conducting business in Simi Valley including
attractive facility cost, a productive labor force, and a friendly atmosphere.
In addition, the Simi Valley City Council recently adopted an Economic
Strategic Plan to enhance and further support local businesses. A key
component of the plan included the development of a comprehensive
Economic Development Program, which incorporated both plan goals and
existing city programs that serve the business community. Please see the
city’s website (www.simivalley.org) for additional information.
13
EXCLUSIVELY LISTED BY:
ALEX KOZAKOV
First Vice President
+1 213 613 3031
Lic. 01416489
[email protected]
PATRICK WADE
First Vice President
+1 213 613 3071
Lic. 01454690
[email protected]
HEATHER GARRETT
Client Services Specialist
+1 213 613 3367
Lic. 01940192
[email protected]
MAXX COHEN
Associate
+1 213 613 3117
Lic. 01928768
[email protected]
ERIC ROY
Associate
+1 213 613 3410
Lic. 01943774
[email protected]
Affiliated Business Disclosure
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 commercial 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 Trammel 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 offeror or prospective offeror, 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.
Confidentiality Agreement
This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition 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
variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property 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 descriptions of the full agreements referenced. Interested parties are expected to review all such
summaries and other documents of whatever nature independently 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 terminate discussions with
any entity at any time with or without notice which may arise as a result of review of 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 contents 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 contents 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.
DISCLAIMER
©2015 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not
verified it and makes no guarantee, warranty, or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends
on tax and other factors which should be evaluated by your tax, financial, and legal advisors. 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.
CBRE and the CBRE logo are service marks of CBRE Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. 2/13 PMC0004481