scott g. hook nishi & oc threading salon...nishi & oc threading salon 6242 beach blvd buena...

19800 MACARTHUR BLVD. , SUITE 150, IRVINE , CA 92612 | WWW.HOOKRE TAIL ADVISORS.COM | WWW.MARCUSMILLICHAP.COM

OFFERING MEMORANDUM

NISHI & OC THREADING SALON

6242 Beach BlvdBuena Park, CA 90621

DAN FILLETAssociate P: (949) 419.3314 C: (714) [email protected] Lic# 02016909

SCOTT G. HOOK Senior Vice PresidentP: (949) 419.3224 C: (949) [email protected] Lic# 00914392

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DAN FILLETAssociate P: (949) 419.3314 C: (714) [email protected] Lic# 02016909

SCOTT G. HOOK Senior Vice PresidentP: (949) 419.3224 C: (949) [email protected] Lic# 00914392

19800 MACARTHUR BLVD., SUITE 150, IRVINE, CA 92612 WWW.HOOKRETAILADVISORS.COM | WWW.MARCUSMILLICHAP.COM

TABLE OF CONTENTS

INVESTMENT OVERVIEWInvestment Overview 4Investment Summary 5Income & Expenses 6Property Photos 7Retailer Map 9Aerial Map 10Location Maps 11Regional Map 12

COMPETITIVE PROPERTY SETSale Comparables 14Sale Comparables Map 16Sale Comparables Graph 17

AREA OVERVIEWCity Overview 20The Source OC 21Knott’s Berry Farm 22Coming Soon to Buena Park 23

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INVESTMENT OVERVIEWInvestment OverviewInvestment Summary

Income & ExpensesProperty Photos

Retailer MapAerial Map

Location MapsRegional Map

HOOK RETAIL ADVISORS | 4 |

INVESTMENT OVERVIEW

Property is located on the SE corner of Beach Blvd and W Commonwealth Ave in the heart of Buena Park just north of 5 freeway. Beach Blvd is a major north-south thoroughfare leading directly south into the Entertainment Corridor which contains a variety of attractions including Knott’s Berry Farm and Knott’s Soak City. Beach Blvd provides immediate access to 5 and 91 freeways. Major streets bordering the immediate area are Artesia Blvd to the north, and Orangethorpe Ave to the south. Popular citires of La Habra and Fullerton lie just north and west of subject.

» 2-Tenant Retail Investment Property » Prime signalized intersection » Under market rent on 46% GLA, convert to NNN » Current term 5-year (Nishi); 2-year remaining (OC Threading Salon) » Healthy annual rent increases » Well-maintained attractive property with excellent exposure » Parking ratio 4.90/1000 SF (11 spaces, including 1 handicap) » High Traffic Count(Combined Beach Blvd/Commonwealth) +/- 71,500 VPD » 1/2 mile from Interstate 5 freeway and 3/4 mile from 91 freeway » Property is located north of the Entertainment Corridor, Knott’s Berry Farm, and Knott’s Soak City

Investment Overview Location Overview


INVESTMENT SUMMARY

Investment Summary

Sale Price: $1,878,000

Cap Rate: 4.65%

APN: 277-031-01

Lot Size: 0.30 AC (13,068 SF)

Building Size: 2,243 SF

Year Built: 2006

Zoning: Commercial/Retail

Sub Market: Buena Park/La Palma

88,025EMPLOYEES WITHIN A 3 MILE RADIUS

6,226BUSINESSES WITHIN A 3 MILE RADIUS

$94,349AVERAGE HOUSEHOLD INCOME


INCOME & EXPENSES

Tenant Unit SF GLA % Current Rent/Month

Month Rent/SF

Current Rent/Year

Escalation Terms Lease Expiration Next

EscalationsOptions to

Renew

Nishi 1,212 54% $5,409.53 $4.46 $64,914.36 NNN CPI

3% Min8% Max September 30, 2021 9/30/19

1 five (5) Year option with annual

increases at CPI (3% min).

OC Threading Salon 1,031 46% $2,840.28 $2.75* $32,083.32 Gross Fixed 4.3% July 31, 2021 7/31/20 None

TOTAL 2,243 100% $8,132.64 $3.63 $97,592 $3,353

EXPENSES

Annual Property Taxes (Based on $1.878M List Price) $21,034.00 Adjusted Est. Prop Tax @ 1.12% Rate

Annual Insurance $1,812.00

CAM $300/Mo. $3,600.00

TOTAL EXPENSES $26,446.00

Aug 2019

Scheduled Base Rent $98,998

NNN Reimbursement $14,740

Total Income $113,738

Less Expenses $26,446

Net Operating Income $87,292

OC Thread Salon:* Proforma NOI Increase @ $4.00 NNN PSF OC Threading Salon 08-01-2021= $1.25 x 1,031 SF = $1,289/month x 12 = $15,465 + 12,165 (NNN recapture) = $27,630 Increase. Proforma Increased Value @ 4.65% cap = $595,000


PROPERTY PHOTOS

Nishi Poke & Ramen Bistro is currently subleasing from the tenant Pokicraft. It is a unique Japanese restaurant concept with locations in West L.A., Culver City, and a fourth location planned in the Los Angeles area. Nishi Poke & Ramen Bistro has made substantial improvements to the interior dining and kitchen areas at the Buena Park property. Pokicraft remains responsible for monthly rent through end of the term, though Nishi Poke & Ramen Bistro with multiple locations and expansion plans has greater brand equity, name recognition, and is likely a stronger tenant and operator.


PROPERTY PHOTOS

0 0.1 0.2 0.3 0.40.05Miles


RETAILER MAP

ORANGETHORPE AVE

BEA

CH

BLV

D

W COMMONWEALTH AVE (14,000 VPD)

I-5 FREEWAY (196,000 VPD)

(57,

500

VPD

)

SUBJECT PROPERTY

AUTO DEALERSHIP

1 Car Max Auto Dealership2 Ken Grody Ford Auto Dealership3 Buena Park Honda Auto Dealership4 Toyota Auto Dealership5 Buena Park Nissan Auto Dealership6 Simpson Buick GMC Auto Dealership7 Tesla Auto Dealership8 BMW Auto Dealership9 House of Imports Auto Dealership

1

2

3

4

6

8

5

7

9

RETAIL

10 Ganahl Lumber11 Stater Bros. Markets12 The Source13 Target 10

11

12

13

HOTEL

14 Surestay Hotel15 Fairfield Inn & Suites16 Holiday Inn17 Days Inn18 Howard Johnson19 Good Nite Inn20 Buena Park Manor

14

15

16

17

18

19

20

RESTAURANTS

21 Arby’s22 Pizza Hut23 KFC24 Sizzler25 Fuddruckers26 Denny’s27 Wendy’s28 Black Angus29 Black Bear Diner30 McDonald’s

2122

23

2425

2627

28

29

30

BEA

CH

BLV

D

Fullerton Municipal

Airport

Knott’s Berry Farm

0 0.035 0.07 0.105 0.140.0175Miles


AERIAL MAP

W COMMONWEALTH AVE (14,000 VPD)

(57,

500

VPD

)

SUBJECT PROPERTY

BEA

CH

BLV

D

I-5 FREEWAY (196,000 VPD)

TOP 10 EMPLOYERS IN BUENA PARK # OF EMPLOYEES

1 Knott's Berry Farm 5,0712 Prologis 8003 Leach 4834 Access Business Group 4795 PepsiCo 4776 J. C. Penney 3827 ADP 3588 Yamaha 3429 RIA Financial Services 30810 City of Buena Park 303

AUTO CENTER DRIVE

Off Ramp

On Ram

p


LOCATION MAPS


REGIONAL MAP

SALE COMPARABLES Sale Comparables

Sale Comparables MapSale Comparables Graph


SALE COMPARABLESPHOTO ADDRESS SALE PRICE SOLD DATE CAP RATE PRICE/SF BUILDING SF LOT SIZE YEAR BUILT DESCRIPTION

Subject Property

6242 Beach BlvdBuena Park, CA 90621 $ 1,878,000 TBD 4.65% $837.27 2,243 SF 0.30 AC 2006 Retail

1 2429 W Ball RdAnaheim, CA 92804 $2,580,000 8/31/2018 $1,011.76 2,550 SF 0.69 AC 1978 Retail

Investment

2 19131 Brookhurst StHuntington Beach, CA 92646 $2,765,000 8/30/2018 4.71% $848.16 3,260 SF 0.46 AC

1969/Renov 1998

Retail Investment

3 1825 E Katella AveOrange, CA 92867 $2,788,000 7/5/2018 4.50% $824.85 3,380 SF 0.29 AC 1969 Retail

Investment

4 124 E 17th StCosta Mesa, CA 92627 $2,650,000 6/18/2018 4.35% $1,132.48 2,340 SF 0.20 AC 1961 Retail

Owner/User


SALE COMPARABLESPHOTO ADDRESS SALE PRICE SOLD DATE CAP RATE PRICE/SF BUILDING SF LOT SIZE YEAR BUILT DESCRIPTION

5 2751 W Orangethorpe AveFullerton, CA 92833 $2,350,000 3/19/2018 3.23% $814.84 2,884 SF 0.48 AC 1985 Retail

6 13471 Magnolia StGarden Grove, CA 92844 $4,150,000 2/23/2018 4.00% $1,257.58 3,300 SF 0.63 AC 1985 Retail

7 1201 E La Habra BlvdLa Habra, CA 90631 $3,450,000 2/16/2018 4.10% $1,197.92 2,880 SF 0.52 AC 2005 Retail


SALE COMPARABLES MAP

6242 Beach Blvd, Buena Park, CA 90621

1 2429 W Ball Rd, Anaheim, CA 92804

2 19131 Brookhurst St, Huntington Beach, CA 92646

3 1825 E Katella Ave, Orange, CA 92867

4 124 E 17th St, Costa Mesa, CA 92627

5 2751 W Orangethorpe Ave, Fullerton, CA 92833

6 13471 Magnolia St, Garden Grove, CA 92844

7 1201 E La Habra Blvd, La Habra, CA 90631

1

6

5

2

4

3

Subject Property

7


CAP RATE GRAPH

4.65% 4.71%4.50%

3.23%

4.00%4.10%

Subject Property 2 3 5 6 70.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

CAP RATE

Avg Cap Rate

4.11%


PRICE PER SF GRAPH

$837

$1,012

$848 $825

$1,132

$815

$1,258 $1,198

Subject Property 1 2 3 4 5 6 7$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

PRICE PER SQUARE FOOT

Avg PSF$1,013

AREA OVERVIEWCity Overview

The Source OCKnott’s Berry Farm

Coming Soon to Buena Park


CITY OVERVIEW

Population 1 Mile 3 Mile 5 Mile

2018 Total Population: 33,240 281,215 677,962

2023 Population: 34,277 291,141 701,102

Pop Growth 2018-2023: 0.62% 0.70% 0.67%

Average Age: 36.0 34.9 36.1

Households

2018 Total Households: 9,865 80,988 197,099

HH Growth 2018-2023: 0.47% 0.54% 0.52%

Median Household Inc: $72,241 $75,922 $82,243

Avg Household Size: 3.32 3.43 3.39

2018 Avg HH Vehicles: 2 1 2

Housing

Median Home Value: $462,783 $484,824 $532,202

Median Year Built: 1953 1960 1958

Located in northwest Orange County, Buena Park is

a Charter City operating under the Council-Manager

form of government. The City has approximately 400

employees with an annual budget of $108,823,810 (all

funds). Buena Park is located 21 miles southeast of Los

Angeles, and is referred to locally as the “Center of the

Southland” due to its easy access to both the 91 and 5

freeways. With a diverse population of 83,000, Buena

Park offers quality residential areas, excellent cultural

and recreational facilities, and a stable economy

within its 10.3 square miles.

The strong local economy includes the Entertainment

Corridor, which contains a variety of well-known

attractions, including Knott’s Berry Farm, Pirate’s

Dinner Adventure, Medieval Times Dinner and

Tournament, several hotels, and secured development

plans for several more exciting entertainment and

lodging venues. In addition, the City has a thriving

Auto Center and approximately 100 manufacturing

and warehousing companies. Some of the larger

employers in the City include Nutrilite, Georgia Pacific,

Leach International, and Yamaha Music.


THE SOURCE OCSouthern California’s newest lifestyle and entertainment destination, The Source offers a unique, innovative dining, retail, and entertainment experience

that is unprecedented in Southern California. The Source showcases state-of-the-art technologies including Times Square-esque LED’s located at the

pedestrian entrance of The Source. The Source is located less than a mile from the subject property.


KNOTT’S BERRY FARM

Knott’s Berry Farm is a 160-acre theme park

located in Buena Park, California, and owned by Cedar Fair. In 2017,

it was the tenth-most-visited theme park in North America.

Knott’s Berry Farm is also the most-visited theme park in the Cedar

Fair chain. The park features 40 rides including roller coasters, family

rides, and water rides, and it employs approximately 10,000 people.

The origin of the theme park dates back to 1920, when Walter Knott and

his family began selling berry products at a roadside stand along State

Route 39 in California. By the 1940s, a restaurant, several shops, and

other attractions had been constructed on the property to entertain

a growing number of visitors, including a replica ghost town. The site

continued its transformation into a modern amusement park over the

next two decades, and an admission charge was added in 1968. The

park was sold to Cedar Fair in the late 1990s, and the family’s food

business was eventually acquired by The J. M. Smucker Company.


COMING SOON TO BUENA PARKSouthern California is one of the top entertainment/tourism destinations in the world and the City of Buena Park rests in the middle of it all -

strategically located in Orange County just minutes from Disneyland, Hollywood, Beverly Hills, Newport Beach, Downtown Los Angeles, and five

major commercial airports. Entertainment and tourism attractions along the Beach Boulevard Entertainment Zone in Buena Park generate 6.4

million visits annually. The Zone is anchored by legendary amusement park Knott’s Berry Farm and Soak City Water Park, Medieval Times, Pirates

Dinner Theatre, Rock & Brews, The Source, and the newly opened Porto’s Bakery & Cafe. Fifteen hotels are interspersed throughout the district

with over 2000 rooms, and twenty-five restaurants compliment the area- all just 6 miles from the Disneyland Resort.

Hotel Sanford

Butterfly Palladium

Aloft Hotel

DAN FILLETAssociate

P: (949) 419.3314 C: (714) 307.8187

[email protected] Lic# 02016909

SCOTT G. HOOK Senior Vice President

P: (949) 419.3224 C: (949) 290.8884

[email protected] Lic# 00914392

19800 MACARTHUR BLVD., SUITE 150, IRVINE, CA 92612 WWW.HOOKRETAILADVISORS.COM | WWW.MARCUSMILLICHAP.COM

EXCLUSIVELY MARKETED BY:

scott g. hook nishi & oc threading salon...nishi & oc threading salon 6242 beach blvd buena...

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