ming & wible center · ming & wible center is an exceptional opportunity to acquire a...
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O F F E R I N G M E M O R A N D U M
Bakersf ie ld , CA 93304
MING & WIBLE CENTER3214-3216 MING AVENUE
Bakersfield Overview Retail Market Overview
Area Overview12
Offering SummaryInvestment SummaryInvestment Highlights
Executive Summary2Local Area Map Site PlanPhysical DescriptionProperty Photos
Property Description6
Rent RollInvestment Summary
Financial Overview16
Table of Contents
Exclusively Listed By
Senior Vice President Retail Capital MarketsLic. 01302079Mobile +1 949 275 8807Direct +1 949 724 [email protected]
Charley Simpson
Associate Vice President Retail Capital MarketsLic. 01987844Mobile +1 760 685 6873Direct +1 949 724 [email protected]
Caitlin Zirpolo
Associate Vice President Retail Capital MarketsLic. 02008809Mobile +1 951 264 5994Direct +1 949 724 [email protected]
Jordan Gomez
Associate Vice President Retail Capital MarketsNY Lic. 10401244229Mobile +1 917 515 9975Direct +1 949 724 [email protected]
David Maloy
Executive Vice President Retail Capital MarketsLic. 01890271Mobile +1 858 752 3078Direct +1 949 724 5690 [email protected]
El Warner | Team Lead
Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 1Col l iers In ternat iona l
2 Co l l iers In ternat iona l
EXECUTIVEsummary
Colliers Retail Capital Markets Team is pleased to present
the fee simple sale of Ming & Wible Center, a 30,708 SF
neighborhood retail center located directly across from the
Valley Plaza Mall (140 specialty stores) which is the largest
shopping destination in the San Joaquin Valley.
Ming & Wible Center is centrally located at the intersection
of the 99 Freeway and Ming Avenue (187,144 VPD).
Strategically situated along Bakersfield’s major retail
corridor, Ming & Wible Center is surrounded by many of the
largest retailers in the world which include Target, Macy’s,
JCPenney, Apple, Forever 21, TJ Maxx, Ross, Marshalls,
CVS Pharmacy and many others. Shadow anchored to the
largest specialty and luxury-oriented retail destination
in Bakersfield, this investment offering is currently 100%
occupied by four long-standing, quality tenants including
Big 5 Sporting Goods, Mattress Firm, Eyemart Express and
The Corner Pocket.
Ming & Wible Center is an exceptional opportunity to
acquire a stable cash flow with attractive growth in the
revenue from fixed annual increases and is being offered
free and clear of any debt. Combine this with historically
low interest rates which will generate double digit leveraged
returns for many years to come.
Asking Price $6,875,000
Total GLA 30,708 SF
Occupancy 100%
In-Place NOI $473,031
Price PSF $223.88 PSF
In-Place Cap-Rate 6.88%
Leveraged Return 12.69%
Total Land Area 87,555 SF (2.01 Acres)
Financing No Existing Debt – Loan Quotes Available
Investment Summary
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Investment Highlights
Long term tenants committed to the location with low replaceable rents
Irreplaceable main & main location along the 99 Freeway directly off the Ming Avenue on/off ramp in the heart of Bakersfield, California.
Big 5 Sporting Goods occupies 41.1% of the GLA and is only paying $0.92/SF/month NNN which is well below market and provides significant future upside for a prospective investor.
Anchored by Big 5 Sporting Goods (NASDAQ: BGVF) which stock price was up +25% end of July 2020 due to same store sales increasing 31.9% for fiscal July period.
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Impressive historical occupancy with three of the four tenants occupying their space for over 10 years including Big 5 Sporting Goods (44 years), The Corner Pocket (32 years) and Eyemart Express (11 years).
+10YEARS
Over 76% of the existing tenancy survived the last recession, providing a new investor with security of investment and “peace of mind” through turbulent times.
Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 4
New financing projected to provide a Day 1 return of 12.69%.
Prominently located at the heavily trafficked intersection of the 99 Freeway and Ming Avenue which see a combined 187,144 VPD.
Strategically situated across from the Valley Plaza Mall along Bakersfield’s premier retail corridor (Ming Avenue) which features major retailer brands such as Apple, AT&T, Express, Forever 21, H&M, JC Penney, Macy’s, Old Navy, Sephora, Target, T-Mobile, Verizon and 128 other stores.
30,708 SF offering that is 100% leased to a synergistic mix of tenants including Big 5 Sporting Goods, Mattress Firm and Eyemart Express.
Offered at a low price per square foot of $224
Attractive revenue growth with fixed rental increases and all tenants operating NNN leases at below market rents.
Ming Avenue - 34,144 VPD
Wible Road - 17,241 VPD
99 Freeway - 153,000 VPD
ON RAMP
ON RAMP
OFF RAMP
OFF RAMP
OFF R
AMP
ON RAMP
OFF RAMP
Bakersf ie ld , CA 93304
MING & WIBLE CENTER3214-3216 MING AVENUE
IMAX
VALLEY PLAZA MALL
FEATURING OVER ONE MILLION SQUARE FEET(140 specialty stores) of the largest selection of exclusive stores
and specialty brands in the market
Col l iers In ternat iona l Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 5
6 Co l l iers In ternat iona l
PROPERTYdescr ip t i on
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Local Area Map
BAKERSFIELD COLLEGE
BAKERSFIELD MEMORIAL HOSPITAL
KERN COUNTY FAIR
KERN MEDICAL CENTER
KERN RIVER
EAST BAKERSFIELD HIGH SCHOOL
Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 7
Bakersf ie ld , CA 93304
MING & WIBLE CENTER3214-3216 MING AVENUE
Site Plan
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SUITE TENANT SF
3214B Big 5 Sporting Goods 12,612
3216B The Corner Pocket 6,000
3216C Sleep Train 7,096
3216D Eyemart Express 5,000
Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 8
NAP
3216B
3214B 3216C 3216D
Wible Road - 17,241 VPD
Min
g Av
enue
- 34
,144
VPD
99 Freeway - 153,000 VPD
ON RAMP
ON R
AMP
OFF RAMP
OFF RAMP
OFF RAMP
ON RAMP
OFF RAMP
OFF RAMP
OFF RAMP
ON RAMP
Bakersf ie ld , CA 93304
MING & WIBLE CENTER3214-3216 MING AVENUE
Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 9Col l iers In ternat iona l
Physical DescriptionTotal GLA 30,708 SF
Year Built 1973
Address 3214-3216 Ming Avenue, Bakersfield, CA 93304
County Kern County
Number of Buildings One Single Story Multi-Tenant Building
Total Land Area 87,555 SF (2.01 Acres)
Type of Ownership Fee Simple
Parcels One Parcel (148-270-30-00-3)
Zoning C-2; Commercial Retail Stores
Cross Streets Ming Avenue - 34,144 VPDWible Road - 17,241 VPD99 Freeway - 153,000 VPD
North The subject is bordered to the north by the 99 Freeway easterly on/off ramp and a 135,000 SF Furniture City anchored shopping center with a freestanding David’s Bridal and other service-oriented retail.
South The Valley Plaza Mall is located directly south of the subject property and features over one million square feet (140 specialty stores) of the largest selection of exclusive stores and specialty brands in the market.
East Additional retail plazas featuring national brands such as JOANN Fabrics, Marshalls, Michaels, La-Z-Boy, Men’s Wearhouse, Jack in the Box, Carl’s Jr., and several others are located east of the subject property.
West The 99 Freeway (153,000 VPD) runs directly east of the property, as well as additional retail plazas featuring more national brands such as Home Depot, Food Maxx, T.J. Maxx, Ross, 99 Cents Only Stors, PetSmart, Guitar Center, O’Reilly Auto Parts, and several others
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Col l iers In ternat iona l Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 1 1
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AREAoverv iew
Bakersfield OverviewSituated within Kern County, Bakersfield covers
about 151-square-miles of land and is one of the
Central Valley’s largest metros, with more than
380,000 residents. Nestled between the southern
end of the San Joaquin Valley and the Central
Valley region, Bakersfield is known as a hub for
both agriculture and energy production.
Employment is growing at around 2.3% year-over-
year and has marginally outperformed the national
benchmark over the past two years. Moreover,
income growth, after steadily falling in conjunction
with oil prices, rose to almost 3% in 2018. Median
household income is roughly $57,000 per year.
Bakersfield transportation is easily accessible and
includes two of California’s main logistics routes,
Interstate 5 and Highway 99. The community
has proximity to the state’s biggest ports in Los
Angeles and Oakland, as well as more than 40
million consumers within a four-hour drive.
POPULATION
2025 Projection 21,270 150,990 335,197
2020 Estimate 20,830 147,941 323,957
Growth 2020-2025 2.10% 2.10% 3.50%
Growth 2010-2025 4.60% 4.30% 11.6%
HOUSEHOLDS
2025 Projection 6,940 48,409 102,490
2020 Estimate 6,859 47,710 99,800
Growth 2020-2025 1.20% 1.50% 2.70%
Growth 2010-2025 1.20% 2.60% 8.90%
INCOME
Average Household Income $49,162 $58,382 $66,188
Median Household Income $37,503 $42,249 $66,188
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1
MILE
3
MILES BAKERFIELD
Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 1 3
Retail demand in Bakersfield has been steady in recent years, with that trend continuing to
start 2020. The vacancy rate fell from 9.1% in Q1 2019 to 6.6% in Q1 2020, a likely result of the
expansion plans of major retailers such as Walmart and Target backfilling many of the big box
vacancies in the market.
Retail rents grew by 0.9% over the past four quarters, with the average asking rent of $16.90/SF.
When compared to neighboring metros Fresno and Visalia, these are about 10% higher and have
seen a steadier increase over the same five year period.
The Subject Property is located just north of the Valley Plaza Mall, Bakersfield’s largest retail
property in the area, featuring an astounding 140 specialty retailers, including exclusive stores
such as Apple, Sephora, Michael Kors, Garage, Victoria’s Secret, Hollister, H&M, Urban Decay
and Miniso. Equipped with a 16-screen Reading Cinemas and delicious dining options like Texas
Roadhouse, Lucille’s Smokehouse BBQ and Red Robin, this is a preferred family-friendly shopping
destination in central California.
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Retail Market Overview
Submarket
Bakersfield, CA
Total Retail Inventory
11,200,000 SF
Vacancy Rate
6.5% as of Q1 2020
Average Asking Rate
$16.90/SF/Year as of Q1 2020
Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 1 4
Col l iers In ternat iona l Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 1 5
Bakersf ie ld , CA 93304
MING & WIBLE CENTER3214-3216 MING AVENUE
VALLEY PLAZA MALL VALLEY PLAZA MALL 140 Specialty Retailers
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FINANCIALoverv iew
Unit # Tenant Lease Start Lease EndContract Rental Rate Rent Per SF # of Years
ExpensesSF % of GLA Year Month Year Month Rent Increases Tenant
3214B Big 5 Sporting Goods Mar-76 Jan-29 12,612 41.1% $138,732 $11,561 $11.00 $0.92
2/1/24: $12,718 Option 5: $13,989 Option 6: $15,388 Option 7: $16,927
44 NNN
Comments Tenant has three 5-year options remaining.
3216B The Corner Pocket May-88 Sep-21 6,000 19.5% $104,340 $8,695 $17.39 $1.45 32 NNN
Comments Tenant has no remaining options.
3216C Sleep Train Mar-13 Nov-28 7,096 23.1% $111,265 $9,272 $15.68 $1.31 12/1/23: $9,735 Option 1: $10,710 Option 2: 11,780
7 NNN
Comments Tenant has two 5-year options remaining.
3216D Eyemart Express Mar-09 Aug-26 5,000 16.3% $96,000 $8,000 $19.20 $1.60 Option 1: $8,960 Option 2: $9,856 11 NNN
Comments Tenant has two 5-year options remaining.
The Lamar Companies Jul-02 Dec-22 $12,000 $1,000 18
Comments Contractual signage income.
Totals 30,708 100.0% $462,337 $38,528 $15.06 $1.25
Rent Roll
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Investment Summary
Col l iers In ternat iona l Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 1 8
DEBT SUMMARY NEW LOAN
Loan Amount: $4,468,750
LTV (Initial DCF Valuation): 65%
Interest Rate: 3.75%
Fixed or Floating: Fixed
Loan Term: 7 Years
Amort Term: 25 Years
I/O Period: 2 Years
Loan Fee: Negotiable
PURCHASE SUMMARY
Purchase Price: $6,875,000
Purchase Price $/SF: $223.88
Net Rentable Area: 30,708
In Place NOI $473,031
In Place Cap Rate 6.88%
Cash on Cash $305,453
Cash on Cash Return 12.69%
IN PLACE INCOME & EXPENSE SUMMARY
Income Total
Base Rental Revenue $462,337
Percentage Rent Signage Fee $4,583
Net Rental Income $466,920
Expense Reimbursements $191,982
Effective Gross Income $658,902
Expenses Total Total
Real Estate Taxes $2.70 $83,000
Property Insurance $0.13 $3,986
CAM/R&M/Utilities $2.51 $77,188
Management 2.81% $18,540
Non-Reimbursable Expenses $0.10 $3,157
Operating Expenses $185,871
Net Operating Income $473,031
Asking Price $6,875,000
In Place Cap Rate 6.88%
New Debt $4,468,750
Required Equity $2,406,250
Debt Service $167,578
In Place Cash Flow $305,453
Cash on Cash Return 12.69%
99 Fr
eeway
- 153
,000 VPDOFF RAMP ON
RAM
P
OFF RAMP
OFF RAMP
ON RAMP
Wible R
oad -
17,24
1 VPD
Ming Avenue - 34,144 VPD
Bakersf ie ld , CA 93304
MING & WIBLE CENTER3214-3216 MING AVENUE
Col l iers In ternat iona l Ming & Wib le Center | 3214-3216 Ming Avenue | Bakersf ie ld , CA 1 9
58 Freeway (99,055 VPD)
Colliers International 3 Park Plaza | Suite 1200
Irvine, CA 92614 | United States colliers.com/greaterlosangeles
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2020 All rights reserved.
Senior Vice President Retail Capital MarketsLic. 01302079Mobile +1 949 275 8807Direct +1 949 724 [email protected]
Charley Simpson
Associate Vice President Retail Capital MarketsLic. 01987844Mobile +1 760 685 6873Direct +1 949 724 [email protected]
Caitlin Zirpolo
Associate Vice President Retail Capital MarketsLic. 02008809Mobile +1 951 264 5994Direct +1 949 724 [email protected]
Jordan Gomez
Associate Vice President Retail Capital MarketsNY Lic. 10401244229Mobile +1 917 515 9975Direct +1 949 724 [email protected]
David Maloy
Executive Vice President Retail Capital MarketsLic. 01890271Mobile +1 858 752 3078Direct +1 949 724 5690 [email protected]
El Warner | Team Lead