offering memorandum (l) · 2019-04-03 · any estimates of market rents and/or projected rents that...

KW COMMERCIAL12780 High Bluff Drive,Suite 130San Diego, CA 92130

Pioneer & 183rd

OFFERING MEMORANDUM

MARK HUGHESDirector0: 858.720.1900 X8232C: [email protected] DRE# #00635629

JASON FADELLISenior AssociateO: [email protected] DRE# #01963503

PRESENTED BY:

ARTESIA, CA

OFFERING MEMORANDUM

Each Office Independently Owned and Operated kwcommercial.com 2

OFFERING MEMORANDUM

Confidentiality & DisclaimerARTESIA, CA

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness ,veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financialperformance 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 to accuracy or completeness of the any materials or information provided, derived,or received. Materials and information from any source, whether written 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 these and othermatters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party 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 inspections and investigations including through appropriate third party independentprofessionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KWCommercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any partyregarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that maybe provided to a party do not necessarily mean that rents can be established 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 the party with an attorney. Tax questions should be discussed by the party with acertified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies withapplicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed byCarmel Valley / Del Mar in compliance with all applicable fair housing and equal opportunity laws.

KW COMMERCIAL12780 High Bluff Drive,Suite 130San Diego, CA 92130

PRESENTED BY:

MARK HUGHESDirector0: 858.720.1900 X8232C: [email protected] DRE# #00635629

JASON FADELLISenior AssociateO: [email protected] DRE# #01963503

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

http://kwcommercial.com

kwcommercial.com 3

PROPERTY INFORMATION

1 | PROPERTY INFORMATION

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION

PROPERTY DETAILS

ADDITIONAL PHOTOS

1PROPERTY INFORMATIONPIONEER & 183RD

OFFERING MEMORANDUM


OFFERING SUMMARY

SALE PRICE: $4,700,000

PROFORMA CAP RATE: 6.51%

NOI: $366,799*

LOT SIZE: 23,938 SF

YEAR BUILT: 1959

BUILDING SIZE: 10,282

RENOVATED: 2018

ZONING:ATCG* Use CodeStore/Office (MixedUse Potential)

PRICE / SF: $457.11

PROPERTY OVERVIEWSeize this opportunity to own this exceptional owner user, or investment property. Neighborhood and strip retail are preformingexceptionally well this cycle, and this owner has decided to price the property to sell quickly. As such, this prime corner location,at 183rd and Pioneer Blvd., represents a rare chance to buy a 10,282 SF freestanding retail building at a great price.

Although the property is currently demised for 6 tenants, it was constructed with 10 doors, and can be easily reconfigured tohouse 9 tenants, for which the owner is currently processing building permits. The property boasts an expansive window lineand has 37 parking spaces with great ingress and egress. Additionally, the City of Artesia is planning a city parking facility about700 feet away. The owner currently occupies approximately 7,721 SF. Three tenants occupy the remaining space.

Great future value-add development potential: The City is currently processing an overlay zone which would allow up to 5stories, with retail on the ground floor. Additionally, a new train station project will be breaking ground at 186th street, providingimmediate access to mass transit.

This is an exceptional opportunity to own the premier corner at the epicenter of Artesia's preeminent retail corridor. The CerritosMall, with over 180 shops, located at 183rd St and Gridley, is only a half mile away on 183rd, driving exceptional traffic past thislocation.

• Location, Location, Location!

Executive Summary

PIONEER & 183RD 1 | PROPERTY INFORMATION



PROPERTY OVERVIEWThis 10,282 SF free standing multi-tenant retail building is occupied by 3 tenants and the owner-user, who isprepared to sign a short term lease while a new owner re-tenants or redevelops the property.

Although the property is currently demised for 6 tenants, it was constructed with 10 doors, and can be easilyreconfigured to 9 suites. The owner is currently processing building plans to create those additional suites.

The property boasts an expansive window line and has 37 parking spaces with great ingress and egress. Thecurrent owner occupies 7,721 SF, and is prepared to lease back up to 5,246 SF for up to 1 year.

The City of Artesia is in the process of placing a zoning overlay on the Pioneer Blvd corridor and is encouragingthe owner to consider redeveloping the property into a 5 story mixed use project. The approval of the overlayzone is anticipated in Spring 2019.

LOCATION OVERVIEWThis is a corner location at Pioneer Blvd. and 183rd, minutes from the I-605 and I-91 freeways and the 180store Cerritos Mall. This proximity drives thousands of retail customers traveling down 183rd and PioneerBlvd., upon which the owner's business has thrived for over 30 years.

Property Description




SALE PRICE $4,700,000

LOCATION INFORMATIONBuilding Name Pioneer & 183rd

Street Address 18301-18307 Pioneer Blvd.

City, State, Zip Artesia, CA 90701

County/Township Los Angeles

BUILDING INFORMATIONBuilding Size 10,282 SF

Occupancy % 100%

Tenancy Multiple

Number Of Floors 1 + Bonus Upstairs Office and Storage

Average Floor Size 10,282 SF

Year Built 1959

Last Renovated 2018

Load Factor Yes

Vacancy % 0% (owner occupies 3 suites)

PROPERTY DETAILSProperty Type Retail

Property Sub-type Street Retail

Zoning ATCG* Use Code Store/Office

Lot Size 23,938 SF

APN# 7039-001-005

Parking Spaces 37

Window Line Yes

Demisable Yes

Value Add Yes

Excellent Location And Street Visibility

Large 23,938 SF Corner Lot

37 Striped Parking Spaces

Tremendous Window Line

Over $360K Annual Pro Forma Income

Property Details




18301 Pioneer Blvd. Suite A 18301 Pioneer Blvd. Suite D

18307 Pioneer Blvd.Corner Location

Additional Photos



kwcommercial.com 8

LOCATION INFORMATION

2 | LOCATION INFORMATION

REGIONAL MAP

LOCATION MAPS

AERIAL MAP

FLOOR PLANS

2LOCATION INFORMATIONPIONEER & 183RD

OFFERING MEMORANDUM


Pioneer & 183rd

Regional Map

PIONEER & 183RD 2 | LOCATION INFORMATION



Location Maps




Aerial Map




Floor Plans



kwcommercial.com 13

FINANCIAL ANALYSIS

3 | FINANCIAL ANALYSIS

FINANCIAL SUMMARY

RENT ROLL

TENANT PROFILES - STATE FARM

TENANT PROFILES - HOUSE OF FADE

3FINANCIAL ANALYSISPIONEER & 183RD

OFFERING MEMORANDUM


INVESTMENT OVERVIEW PRO FORMA PROPERTY ANALYSIS

Price $4,700,000

Price per SF $457.11

CAP Rate 6.5%

Cash-on-Cash Return (yr 1) 6.14 %

Total Return (yr 1) $159,400

Debt Coverage Ratio 1.39

OPERATING DATA PRO FORMA PROPERTY ANALYSIS

Gross Scheduled Income $366,799

Other Income None

Total Scheduled Income $366,799

Vacancy Cost $18,339

Gross Income $348,459

Operating Expenses NNN Pro Forma

Net Operating Income $305,959

Pre-Tax Cash Flow $86,516

FINANCING DATA PRO FORMA PROPERTY ANALYSIS

Down Payment $1,410,000

Loan Amount $3,290,000

Debt Service $219,443

Debt Service Monthly $18,286

Principal Reduction (yr 1) $72,884

Pro Forma Financial Summary W/ 70/25/10 Terms

PIONEER & 183RD 3 | FINANCIAL ANALYSIS



TENANT

NAME

UNIT

NUMBER

UNIT

SIZE (SF)

LEASE

START

LEASE

END

ANNUAL

RENT

% OF

GLA

PRICE

PER SF/YR

PRICE

PER SF/MONTH

Sona Chaandi (Salon) 18301 A 1,636 MTM $53,988 15.91 $33.00 $2.75

State Farm Insurance 18301 B 825 Jan 1, 2016* Dec 31, 2020* $24,000 8.02 $29.09 $2.42

House of Fade (Barber Shop) 18301 C 825 MTM MTM $33,360 8.02 $40.44 $3.37

Sona Chaandi (Retail) 18301 D + 18307 (A) 6,085 MTM $200,805 59.18 $33.00 $2.75

Retail Boutique 18307 B 911 Jan 1, 2018* Dec 31, 2019* $30,000 8.86 $32.93 $2.74

Totals/Averages 10,282 $342,153 $33.28 $2.77

Rent Roll




Company: State Farm Insurance

Lease Commencement Date: August 1st, 2017

Lease Rate: $2.42 / sf

Space Occupied: 825

Lease Expiration Date July 31st, 2018

Deposit: $3,000

OVERVIEW

• Franchise Tenants

• Value Add Opportunity

TENANT HIGHLIGHTS

In speaking with the current owner, our team has learned that this State Farm office hasbeen an exceptional tenant for over ______ years.

TENANT NOTES:

Tenant Profiles - State Farm




Company: House of Fade

Lease Commencement Date: February 28th, 2017

Lease Rate: $3.37

Space Occupied: 825

Lease Expiration Date: MTM

Options: N/A

OVERVIEW

• Tenant would like to renew his lease upon sale or during escrow

TENANT HIGHLIGHTS

A very successful local barbershop for over 8 years.

TENANT NOTES

Tenant Profiles - House Of Fade



kwcommercial.com 18

SALE COMPARABLES

4 | SALE COMPARABLES

SALE COMPS

SALE COMPS SUMMARY

SALE COMPS MAP

4SALE COMPARABLESPIONEER & 183RD

OFFERING MEMORANDUM


Subject Property18301 Pioneer Blvd. | Artesia, CA 90701

$4,700,000Sale Price: 23,938 SFLot Size: 1959Year Built:

$457.11Price PSF: 10,282 SFBuilding SF: 6.51%CAP:

$305,959NOI:

1

12154 Artesia Blvd.12154 Artesia Blvd. | Artesia , CA 90701

$3,500,000Sale Price: 21,344 SFLot Size: 2017Year Built:

3,884 SFBuilding SF: $901.13Price PSF: 4.81%CAP:

07/19/2018Closed: 100%Occupancy: $168,350NOI:

Multi-tenant retail, corner location with a drive thru.

1

Sale Comps

PIONEER & 183RD 4 | SALE COMPARABLES



1

SUBJECT PROPERTY PRICE BLDG SF PRICE/SF CAP # OF UNITS

Pioneer & 183rd18301 Pioneer Blvd.Artesia, CA 90701

$4,700,000 10,282 SF $457.11 6.51% 6

SALE COMPS PRICE BLDG SF PRICE/SF CAP # OF UNITS CLOSE

12154 Artesia Blvd.12154 Artesia Blvd.Artesia , CA 90701

$3,500,000 3,884 SF $901.13 4.81% 2 07/19/2018

PRICE BLDG SF PRICE/SF CAP # OF UNITS CLOSE

Totals/Averages $3,500,000 3,884 SF $901.13 4.81% 2

Sale Comps Summary




18301 Pioneer Blvd. | Artesia, CA 90701SUBJECT PROPERTY

112154 Artesia Blvd.Artesia , CA 90701

12154 ARTESIA BLVD.

Sale Comps Map



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RENT COMPARABLES

5 | RENT COMPARABLES

RENT COMPS

RENT COMPS SUMMARY

RENT COMPS MAP

5RENT COMPARABLESPIONEER & 183RD

OFFERING MEMORANDUM


Subject Property18301 Pioneer Blvd. | Artesia, CA 90701

$0.01 - 33.00 SF/yr (MG)Lease Rate: MGLease Type: 800 - 6,085 SFSpace Size:

1959Year Built: 23,938 SFLot Size: 6No. Units:

1

Tally Ho Plaza10466-10506 Artesia Blvd | Bellflower, CA 90706

$2.25 SF/monthLease Rate: GrossLease Type: 750 SFSpace Size:

10,450 SFBldg Size: 1964Year Built: 0 AcresLot Size:

Strip retail on Artesia Blvd, in Bellflower, CA.

1

2

12154 Artesia Blvd12154 Artesia Blvd | Artesia, CA 90701

$3.75 SF/monthLease Rate: NNNLease Type: 1,612 SFSpace Size:


2No. Units:

New construction corner retail location with a drive thru.

2

Rent Comps

PIONEER & 183RD 5 | RENT COMPARABLES



3

6400-6426 Del Amo Blvd6400-6426 Del Amo Blvd | Lakewood, CA 90713

$2.75 SF/monthLease Rate: NNNLease Type: 850 SFSpace Size:


Corner retail location in Lakewood CA.

3

4

Gridley Plaza18300 Gridley Rd | Artesia, CA 90701

$3.00 SF/monthLease Rate: GrossLease Type: 1,128 SFSpace Size:


12 monthsLease Term:

Large retail shopping center in Artesia, Close to I-605

4

5

Hmart Plaza15915-15933 Pioneer Blvd | Norwalk, CA 90650

$3.00 SF/monthLease Rate: Modified GrossLease Type: SFSpace Size:


24 monthsLease Term:

Large corner retail shopping center

5

Rent Comps




6

Crossroads, Bldg 3 - Crossroads18166-18182 Pioneer Blvd | Artesia, CA 90701

$3.95 SF/monthLease Rate: NNNLease Type: SFSpace Size:


6

Rent Comps




1

2

3

4

5

SUBJECT PROPERTY PRICE AVAILABLE SF BLDG SF # OF UNITS

Pioneer & 183rd18301 Pioneer Blvd.Artesia, CA 90701

$0.01 - 33.00 SF/yr (MG) 10,280 SF 10,282 SF 6

RENT COMPS PRICE AVAILABLE SF BLDG SF # OF UNITS

Tally Ho Plaza10466-10506 Artesia BlvdBellflower, CA 90706

$2.25 SF/month 750 SF 10,450 SF -

12154 Artesia Blvd12154 Artesia BlvdArtesia, CA 90701

$3.75 SF/month 1,612 SF 3,884 SF 2

6400-6426 Del Amo Blvd6400-6426 Del Amo BlvdLakewood, CA 90713

$2.75 SF/month 850 SF 12,080 SF -

Gridley Plaza18300 Gridley RdArtesia, CA 90701

$3.00 SF/month 1,128 SF 30,678 SF -

Hmart Plaza15915-15933 Pioneer BlvdNorwalk, CA 90650

$3.00 SF/month - 45,445 SF -

Rent Comps Summary




6

SUBJECT PROPERTY PRICE AVAILABLE SF BLDG SF # OF UNITS

Crossroads, Bldg 3 - Crossroads18166-18182 Pioneer BlvdArtesia, CA 90701

$3.95 SF/month - 7,518 SF -

PRICE AVAILABLE SF BLDG SF # OF UNITS

Totals/Averages $3.12 / SF / month 1,085 SF 18,343 SF 2






Rent Comps Summary




18301 Pioneer Blvd. | Artesia, CA 90701SUBJECT PROPERTY

110466-10506 Artesia BlvdBellflower, CA 90706

TALLY HO PLAZA 212154 Artesia BlvdArtesia, CA 90701

12154 ARTESIA BLVD 36400-6426 Del Amo BlvdLakewood, CA 90713

6400-6426 DEL AMO BLVD 418300 Gridley RdArtesia, CA 90701

GRIDLEY PLAZA

515915-15933 Pioneer BlvdNorwalk, CA 90650

HMART PLAZA 618166-18182 Pioneer BlvdArtesia, CA 90701

CROSSROADS, BLDG 3 - CROSSROADS

Rent Comps Map



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DEMOGRAPHICS

6 | DEMOGRAPHICS

DEMOGRAPHICS MAP

SITE PLAN

6DEMOGRAPHICSPIONEER & 183RD

OFFERING MEMORANDUM


POPULATION 1 MILE 2 MILES 3 MILES

Total Population 25,962 102,159 241,578

Median Age 39.2 37.6 36.3

Median Age (Male) 37.4 35.8 34.6

Median Age (Female) 40.6 39.1 37.5

HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES

Total Households 7,438 29,117 70,800

# Of Persons Per HH 3.5 3.5 3.4

Average HH Income $77,712 $84,650 $81,463

Average House Value $528,286 $524,111 $507,191

ETHNICITY (%) 1 MILE 2 MILES 3 MILES

Hispanic 27.2% 33.6% 39.4%

RACE (%)

White 33.8% 34.4% 41.8%

Black 6.0% 6.4% 6.3%

Asian 41.6% 38.3% 28.8%

Hawaiian 0.2% 0.5% 0.4%

American Indian 0.8% 0.4% 0.5%

Other 13.5% 16.0% 18.6%

* Demographic data derived from 2010 US Census

Demographics Map

PIONEER & 183RD 6 | DEMOGRAPHICS



Site Plan

PIONEER & 183RD 6 | DEMOGRAPHICS


offering memorandum (l) · 2019-04-03 · any estimates of market rents and/or projected rents that...

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