offering memorandum 7-eleven signalized corner centerimages1.loopnet.com/d2/txiuulfbyaltsdi... ·...

7-Eleven Signalized Corner Center

OFFERING MEMORANDUM

501 W. EL SEGUNDO BLVD., LOS ANGELES, CA 90061

OFFERING MEMORANDUM

Each Office is Independently Owned and Operated

David Yashar, ICSC [email protected](310) 724-8043BRE# 01102638

Omid [email protected](310) 724-8066BRE# 01980838

Eric [email protected](310) 724-8066BRE# 01984661

Phone: (310) 482-2500 ● 1642 Westwood Blvd Suite 300 ● Los Angeles, CA 90024 ● www.DavidYashar.comKeller Williams Realty Westside

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APPROX. 6,900 SF STRIP CENTER ON 21,243 SF C2 ZONED LOT, WITH ON-SITE PARKING.

NATIONAL CREDIT TENANTS: 7-ELEVEN, LITTLE CEASARS & BOOST MOBILE.

NEWLY DEVELOPED IN 2016!!!■

■ EASY FREEWAY ACCESS; ONLY 1 BLOCK FROM THE 110 FREEWAY.

GOOD DEMOGRAPHICS: OVER 25,000 PEOPLE RESIDING WITHIN A 1-MILE RADIUS & OVER 280,000 PEOPLE RESIDING WITHIN A 3-MILE RADIUS.

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www.kwcommercial.com 2

KW COMMERCIAL1642 Westwood Blvd.,Suite 300Los Angeles, CA 90024

DAVID [email protected] #01102638

Confidentiality & Disclaimer

OFFERING MEMORANDUM

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third partysources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance orlack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projectedfinancial performance of the property for any party’s intended use or any and all other matters.

Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as toaccuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whetherwritten or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine theseand other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for aparty unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspectionsand investigations including through appropriate third party independent professionals selected by such party. All financial data should beverified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independentprofessionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financialdata or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by theparty with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions shouldbe discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complieswith applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by L.A. Westside in compliance with all applicable fairhousing and equal opportunity laws.

We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty orrepresentation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, orwithdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance ofthe property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

PRESENTED BY:

501 W. EL SEGUNDO BLVD., LOS ANGELES, CA 90061

http://www.kwcommercial.com

PROPERTY OVERVIEWKW Commercial is proud to present this newly developed6,900 SF Strip Center located on 21,243 SF C2 zoned cornerlot. This center was recently constructed in 2016. Theoffering has excellent frontage with approximately 165 FTalong El Segundo Blvd & 150 FT along Figueroa St.

This Center is fully occupied and has an excellent tenant mixwhich includes: 7-Eleven, Boost Mobile, Little Caesars and aNail Salon. All tenants have signed a new NNN lease withthe earliest expiring in November of 2021.

All utilities at the subject property have been sub-meteredand are paid by the tenants directly.

The offering features approximately 26 on-site parkingspaces, 2 points of ingress & egress and a monument sign atthe signalized corner of El Segundo Blvd & Figueroa Ave..

This property will attract an investor looking for a brand newsignalized corner Strip Center with strong national tenantsand minimal management requirements.

LOCATION OVERVIEWThe Subject property is located at the northwest signalizedcorner of El Segundo Blvd & Figueroa St. El Segundo Blvd.is considered a major commercial thoroughfare within thecity of Los Angeles.

The property has great freeway access; only one block eastof the 110 Freeway & 3/4 of a mile south of the 105 Freeway.

The offering is located 2 parcels east of the new MetaHousing Development, which will consist of approximately160 units.

The immediate area provides good demographics with over25,000 people residing within a 1-mile radius and over280,000 people reside within a 3-mile radius.

Property Description

501 W. EL SEGUNDO BLVD., LOS ANGELES, CA 90061 |



7-ELEVEN

7-Eleven is the premier & largest name in convenience storeindustry, headquartered in Irving, Texas, that operates,franchises, and licenses some 56,600 stores in 18countries. The chain was known as Tot'm Stores untilrenamed in 1946. The company offers a selection of over2,500 different products. 7-Eleven was taken private in 2005by its largest share holder and became a subsidiary of theirpublic company Seven & I Holdings.

Supermarket News ranked 7-Eleven's North Americaoperation #11 in 2007's "Top 75 North American FoodRetailers" based on its 2006 estimated sales of $15 billion.Based on 2005's revenue, 7-11 was the 24th largest retailer

in the United States. As of 2013, 8,144 7-Eleven franchisesexisted across the United States. The franchise fees couldrange from $10,000-$1,000,000 with a variable ongoingroyalty rate.

Tenant Description




LITTLE CAESARSLittle Caesars is the third-largest pizza chain in the UnitedStates, behind Pizza Hut and Domino's Pizza, withapproximately 4,100 stores in the U.S. and 400 storesinternationally. The company was founded in 1959 and isbased in Detroit, Michigan, headquarter in the Fox Theaterbuilding. Little Caesars Enterprises, Inc. is a subsidiary ofIlitch Holdings, Inc.

Little Caesars is the fastest growing pizza chain the UnitedStates. The chain sold its first franchise in 1962 and by 1987had restaurants in all 50 states. It operates and franchisespizza restaurants in the United States and internationally inAsia, the Middle East, Australia, Canada, Latin America andthe Caribbean.

Little Caesars is famous for its advertising catchphrase,"Pizza, Pizza!" which was introduced in 1979. The phraserefers to two pizzas being offered for the price of a singlepizza from their competitors. In 2004, the chain beganoffering its "Hot-N-Ready" pizzas campaign.

BOOST MOBILECuddy, Inc. has been a successful Boost Mobile franchiseefor approximately 5 years and currently owns and operates26 stores.

Boost Mobile was founded in Australia and New Zealand in2000 by Peter Adderton, who later brought the Boost Mobilebrand to the U.S. in 2001 as a joint venture with Nextel.Sprint Corporation acquired Nextel in 2006, leaving BoostMobile as a subsidiary of the merged Sprint NextelCorporation.

Boost Mobile operates as a prepaid wireless carrier. It wasinitially marketed to teen and young adults, heavily focusingon action sports, lifestyle and urban music.

Tenant Description




Actual ProformaGross Rent $201,900 $204,132TOTALS $201,900 $204,132

ANNUALIZED INCOMEActual Proforma

Gross Potential Rent $201,900 $204,132

INVESTMENT SUMMARY Less: Vacancy $0 ($4,083)

Price: $4,250,000 Reimbursement $68,798 $67,368Year Built: (Construction) 2016 Effective Gross Income $270,698 $267,417SF 6,900 Less: Expenses ($68,798) ($68,742)Price / SF: $615.94 Net Operating Income $201,900 $198,675Lot Size (SF): 21,243Floors: 1Parking: 26 On-Site ANNUALIZED EXPENSESZoning: LAC2 Actual ProformaAPN: 6132-002-024 Property Taxes $51,000 $51,000Current Cap Rate: 4.75% Insurance $1,661 $1,661Proforma Cap Rate: 4.67% Utilities (Including Trash) TENANT TENANT

Fire Alarm Phone Line $1,800 $1,800Alarm Monitoring $1,200 $1,200Landscaping $4,080 $4,080Repairs & Maintenance $3,000 $3,000Management $6,057 $6,001

Total Expenses $68,798 $68,742Expenses Per RSF $9.97 $9.96

TENANT ANNUAL SCHEDULED INCOME


Income Summary



Suite Tenant NameGLA

OccupiedLease

CommenceLease

ExpireMonthly

Rent Rent/SF

Proforma Monthly

Rent Rent/SF Increases OptionsLease Type

101 7-Eleven 2,500 9/28/16 9/30/26 $6,875.00 $2.75 $6,875.00 $2.75 10% in Oct - 21 6 - 5yr NNN102 Boost Mobile 1,200 3/6/17 3/31/22 $2,700.00 $2.25 $2,781.00 $2.32 3% annual 1 - 5yr NNN

103* Little Ceasars 1,200 12/1/16 11/30/21 $3,750.00 $3.13 $3,750.00 $3.13 6% every 30 mos. 3 - 5yr NNN104** Nail Salon 2,000 TBD 65 mos $3,500.00 $1.75 $3,605.00 $1.80 3% annual 1 - 5yr NNN

6,900 $16,825.00 $17,011.00

Note:*

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**DRIVE BY ONLY**

Rent Roll

(1) SELLER DOES NOT GUARANTEE THE MEASUREMENTS OF EACH UNIT. BUYER IS RESPONSIBLE FOR MEASURING & VERIFYING THE SF FOR EACH/ALL UNITS!!!

Total Square Feet

Increase takes place upon the execution of the initial option.Lease shall commence upon receiving the unit & will expire 65 months from commencement. Annual increase to take effect beginning on the

2nd

anniversary of the lease.


Rent Roll




Additional Photos


SUBJECT PROPERTY

SUBJECT PROPERTY



Additional Photos


SUBJECT PROPERTY

PARKING LOT OF SUBJECT PROPERTY



Additional Photos


FACING WEST ON W. EL SEGUNDO BLVD.

FACING EAST ON W. EL SEGUNDO BLVD.



Location Maps



501 W EL SEGUNDO BLVD

Regional Map





Plat & Site Maps



Retailer Map





* Demographic data derived from 2010 US Census

Demographics Map


ETHNICITY 1 MILE 2 MILES 3 MILES

% HISPANIC 47.4% 49.2% 48.1%

RACE 1 MILE 2 MILES 3 MILES

% WHITE 24.3% 25.5% 26.2%

% BLACK 47.3% 43.0% 42.1%

% ASIAN 2.9% 4.6% 5.8%

% HAWAIIAN 0.0% 0.4% 0.4%

% INDIAN 0.3% 0.2% 0.3%

% OTHER 24.0% 24.5% 23.1%

POPULATION 1 MILE 2 MILES 3 MILES

TOTAL POPULATION 27,540 118,821 284,534

MEDIAN AGE 30.0 29.9 30.9

MEDIAN AGE (MALE) 30.3 28.6 29.5

MEDIAN AGE (FEMALE) 30.6 31.3 32.2

HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES

TOTAL HOUSEHOLDS 8,011 35,333 85,483

# OF PERSONS PER HH 3.4 3.4 3.3

AVERAGE HH INCOME $51,177 $47,216 $49,400

AVERAGE HOUSE VALUE $378,697 $368,096 $386,611


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