single tenant nnn investment opportunity · 8142-027-033, 8142-027-035, 8142-027-032, 8142-027-034....
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SINGLE TENANT NNN INVESTMENT OPPORTUNITY“THE QUAD” AT WHITTIER - 13553 WHITTIER BLVD, WHITTIER CA
ACTUAL SITE
2 ACTUAL SITE SRS NATIONAL NET LEASE GROUP
EXCLUSIVELY MARKETED BYMICHAEL WALSETHSENIOR VICE PRESIDENTSRS NATIONAL NET LEASE GROUP610 Newport Center Drive, Suite 1500Newport Beach, CA 92660
DL: 949.270.8201 | M: 949.400.4261
[email protected] | CA License No. 01405081
KAI YOUNGMANSENIOR ASSOCIATESRS NATIONAL NET LEASE GROUP610 Newport Center Drive, Suite 1500Newport Beach, CA 92660
DL: 949.270.8227 | M: 949.395.1545
[email protected] | CA License No. 01961971
Broker of Record: Garrett Colburn – CA License #01416734
LOGAN FAZAKERLEYSENIOR ASSOCIATESRS NATIONAL NET LEASE GROUP610 Newport Center Drive, Suite 1500Newport Beach, CA 92660
DL: 949.270.8228 | M: 949.343.9587
[email protected] | CA License No. 02081491
3 ACTUAL SITE
CONTENTS
8PROPERTY OVERVIEW
AERIALS | SITE PLAN | LOCATION MAP
17FINANCIALS
RENT ROLL | BRAND PROFILE
5INVESTMENT SUMMARY
OFFERING SUMMARY | INVESTMENT HIGHLIGHTS
15AREA OVERVIEW
DEMOGRAPHICS
SRS NATIONAL NET LEASE GROUP
4 ACTUAL SITE SRS NATIONAL NET LEASE GROUP
5 ACTUAL SITE
INVESTMENT SUMMARY
SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land and building) in a NNN leased, corporate guaranteed, newly renovated, Sleep Number, investment property located in Whittier, CA (Los Angeles MSA). The tenant, Select Comfort Retail Co., recently signed a brand new 7 year lease with 2 (5-year) options to extend. The lease features 10% rental increases at the beginning of each option period, growing NOI and hedging against inflation. The lease is corporate guaranteed and is NNN, an ideal investment for a passive investor. Sleep Number (NASDAQ: SNBR) is an industry leading mattress company with over 570 stores located in all 50 states. The company saw extremely positive results for 2018 with fourth quarter net sales growing 13% to $412 million, and full-year net sales up 6% to a record $1.53 billion. Sleep Number has also invested $46 million in capital expenditures and a total of $481 million into the brand over the past six years, demonstrating their commitment toward steady and everlasting growth.
The Sleep Number property is strategically located at the signalized, hard corner intersection of Central Ave. and Whittier Blvd with 45,500 combined vehicles passing by daily. The asset has excellent visibility and access along Whittier Blvd., which serves as the primary retail and commuter thoroughfare for the city of Whittier. The site is also situated directly across from the 432,000 SF Quad at Whittier shopping center anchored by T.J. Maxx, Vallarta Supermarket, and Burlington, promoting crossover traffic to the subject property. Other nearby national/credit tenants include The Home Depot, Ross Dress for Less, Marshalls, Old Navy, Petco, Grocery Outlet, Walgreens, Rite Aid, Michaels, and more, further increasing consumer draw to the trade area. Moreover, the site is less than 2 miles east of PIH Health, a premier medical facility serving as the largest employer in Whittier with 548 beds and 22 medical offices. The 5-mile trade area is supported by a dense population of over 459,000 residents with a healthy average household income of $91,800.
SRS NATIONAL NET LEASE GROUP
6 ACTUAL SITE
OFFERING SUMMARY
SRS NATIONAL NET LEASE GROUP
PROPERTY SPECIFICATIONS
Pricing: $3,195,000
Net Operating Income: $160,272
Cap Rate: 5.02%
Guaranty: Corporate
Tenant: Select Comfort Retail Co.
Lease Type: NNN
OFFERING
Rentable Area: 4,452 SF
Land Area 0.46 Acres
Property Address: 13553 Whittier Boulevard, Whittier, CA 90605
Year Built / Renovated: 1952 / 2018
Parcel Number: 8142-027-033, 8142-027-035, 8142-027-032, 8142-027-034
Ownership: Fee Simple (Land and Building)
7 ACTUAL SITE
INVESTMENT HIGHLIGHTS
SRS NATIONAL NET LEASE GROUP
New 7-Year Lease | Corporate Guaranteed | Options to Extend
• Sleep Number corporate guaranteed lease• The tenant recently signed a brand new 7 year
lease with 2 (5-year) option periods to extend• Features 10% rental increases at the beginning
of each option period, generating NOI growth
NNN Lease | Fee Simple • Tenant pays for CAM, taxes, and insurance• Ideal investment for a passive investor
Rare Los Angeles County Retail Opportunity | Strong Demographics in 5-Mile Trade Area
• Dense, infill Los Angeles trade area with major barriers for new development
• More than 458,400 residents and over 155,800 employees support the trade area
• $91,803 average household income
Signalized, Hard Corner Intersection | Major Thoroughfare | Excellent Visibility & Access
• Situated at the signalized, hard corner intersection of Central Ave. and Whittier Blvd. with 45,500 vehicles passing by daily
• Whitter Blvd serves as the primary commuter and retail thoroughfare for the city of Whittier
• The asset has excellent visibility and access with multiple points of ingress/egress
Directly Across From the Quad at Whittier (432,000 SF) | Primary Retail Corridor
• Ideally located directly across from the 432,000 SF Quad at Whittier anchored by T.J. Maxx, Vallarta Supermarket, and Burlington
• Other nearby national/credit tenants include The Home Depot, Ross Dress for Less, Marshalls, Old Navy, Petco, Grocery Outlet, Walgreens, Rite Aid, Michaels, and more
Industry Leading Brand | Publicly Traded (NASDAQ: SNBR) | $1.53B Revenue
• Sleep Number, a publicly traded tenant (NASDAQ: SNBR), is an industry leading mattress company with over 570 stores located in all 50 states
• Saw extremely positive results last year with fourth quarter net sales growing 13% to $412M
• Full-year net sales up 6% to a record $1.53B
Close Proximity to PIH Health Center (548 Beds) | Largest Employer in Whittier
• Sleep Number is less than 2 miles east of PIH Health Center, a top-notch medical facility with 548 beds and 22 medical offices
• PIH Health is the largest employer in Whittier
8
PROPERTY OVERVIEW
Whittier Boulevard/ State Highway 72 1 Access Point(s)
Central Avenue 1 Access Point(s)
4,452 SF
Improvements
There are approximately 19 parking spaces
on the owned parcel.
The parking ratio is approximately 4.26 stalls per 1,000 SF
of leasable area.
Parking
Parcel Number: 8142-027-033, 8142-027-035, 8142-027-032, 8142-027-034
Acres: 0.46
Square Feet: 20,03 SF
Parcel
WHC2*
Access Zoning
SRS NATIONAL NET LEASE GROUP
PARCEL MAP
1952
Year Built
Whittier Boulevard/ State Highway 72
45,500 Cars Per Day
Painter Ave.20,300 Cars Per Day
Traffic Counts
ACTUAL SITE
GATEWAY PLAZA
LAUREL ELEMENTARY SCHOOL
SIERRA VISTA HIGH SCHOOL
9 ACTUAL SITE SRS NATIONAL NET LEASE GROUP
WHITTIER BLVD.
CARS PER DAY45,500
CENTRAL AVE.
QUAD AT WHITTIER(432,000 SF)
WHITTIER MARKETPLACE
PIH HEALTH(548 BEDS)
WHITTIER HIGH SCHOOL
10 ACTUAL SITE SRS NATIONAL NET LEASE GROUP
WHI
TTIE
R BL
VD.
CARS PER DAY45,500
PAINTER AVE. CARS PER DAY20,300
QUAD AT WHITTIER
CENTRAL AVE.
LYDIA JACKSON ELEMENTARY
SCHOOL
EVERGREEN ELEMENTARY
SCHOOL
LAUREL ELEMENTARY
SCHOOL
OCEAN VIEW ELEMENTARY
SCHOOL
PAIN
TER
AVE. CARS PER DAY
20,300
CARS PER DAY45,500
11 ACTUAL SITE SRS NATIONAL NET LEASE GROUP
WHITTIER BLVD. / STATE HIGHWAY 72
12 ARTIST RENDERING SRS NATIONAL NET LEASE GROUP
CARS PER DAY45,500
JACKSON ST.
WHITTIER BLVD.
CENT
RAL A
VE.
13 ACTUAL SITE SRS NATIONAL NET LEASE GROUP
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LOCATION MAP
2018 ESTIMATED POPULATION1 Mile ..................................................... 32,064
3 Mile ................................................... 167,815
5 Mile ................................................... 458,404
2018 AVERAGE HOUSEHOLD INCOME1 Mile ................................................... $83,511
3 Mile ................................................... $89,909
5 Mile ................................................... $91,803
2018 ESTIMATED TOTAL EMPLOYEES1 Mile ....................................................... 9,117
3 Mile ..................................................... 60,037
5 Mile ................................................... 155,860
SRS NATIONAL NET LEASE GROUP
LOS ANGELES32 Min 20 miles
WHITTIER
15
AREA OVERVIEWWHITTIER, CALIFORNIAWhittier is located in Los Angeles County, about 12 miles southeast of the City of Los Angeles. Whittier, incorporated in 1898, covers 14.8 square miles and has an estimated population of 88,341 residents. The City of Whittier is centrally located to all of Southern California. Easily accessible through the 605 Freeway, between the 60 and the 5 Freeways, Whittier borders Orange County on the east. Its proximity to Downtown Los Angeles and Orange County makes Whittier a desirable place to locate. Disneyland, mountains, beach and desert are a short drive away.
Whittier’s strong sense of history and vision for the future has made it an upscale and dynamic residential community. Throughout the years, the City of Whittier has striven to provide a healthy and safe community and a well-maintained infrastructure enhanced by planned patterns of growth and development. Through a balance of economic, social, political, cultural and recreational opportunities, the City Council encourages an atmosphere conducive to community spirit and active participation in the affairs and progress of the community. Such efforts have been made to ensure a visually pleasing community in which the City’s identity and character are preserved and enhanced. The official flower of the City is the Friendship Rose.
Businesses and industries in the area include 374 professional services, 868 retail stores, 202 family-type restaurants, 36 manufacturing plants, 8 hotels and motels, 2 new automobile dealerships and over 249 specialty shops and boutiques, predominantly located in Uptown Whittier, the Quad shopping mall, as well as the Whittwood Town Center.
The City of Whittier offers distinct shopping districts: Whittier Marketplace, Whittwood Town Center, The Quad, Home Depot Shopping Center, and the Historic Uptown Whittier. Whittier is proud of its healthy mix of nationally recognized restaurants, retail and independent entrepreneurs. Some of the businesses in the City are: Target, Starbucks, Cost Plus World Market, JCPenney, Black Angus Steakhouse, Sears, Radisson Hotel, Burlington Coat Factory, Old Navy, Michaels, Johnny Carino’s, Presbyterian Intercommunity Hospital, Toyota of Whittier, Baja Fresh Mexican Grill, PetSmart, Trader Joe’s, Color Me Mine, Panera Bread, Coffee Bean & Tea Leaf, Staples, The Home Depot and Community Honda.
Whittier’s Redevelopment Agency has numerous projects underway to revitalize the community. This includes a $7 million project near the historic Hoover Hotel. The city still waits to attract more well-known businesses and open new residential town homes with the revival of its Uptown district. In addition, the agency is working on developing a 480-acre (1.9 km2) project area near Whittier Blvd. The master plan was adopted in June 2005 by the City Council.
The City of Whittier was selected as the Most Business Friendly City in Los Angeles County by the Los Angeles County Economic Development Corporation in November 2012. Whittier was also ranked in the “2014 Top 100 Most Livable Cities” in the entire United States. After reviewing over 1,700 cities across the nation on independent data points, the City of Whittier is among the best, according to Livability.com. Additionally, Whittier has twice been selected by the National Civic League as a finalist for the nationwide All-America City Award. Whittier is indeed a great place to live, thanks to the local school districts, the business community, nonprofit and service organizations, and the residents, who are the reason that Whittier remains such a great place to live, work and shop.
SRS NATIONAL NET LEASE GROUP
16
AREA DEMOGRAPHICS
DEMOGRAPHICS 1 MILE 3 MILES 5 MILES
2018 Estimated Population 32,064 167,815 458,404
2023 Projected Population 32,828 170,963 467,187
2010 Census Population 31,166 161,945 442,568
Projected Annual Growth 2018 to 2023 0.47% 0.37% 0.38%
Historical Annual Growth 2010 to 2018 0.34% 0.43% 0.43%
2018 Estimated Households 9,930 49,700 132,966
2023 Projected Households 10,111 50,379 134,825
2010 Census Households 9,771 48,273 129,547
Projected Annual Growth 2018 to 2023 0.36% 0.27% 0.28%
Historical Annual Growth 2010 to 2018 0.20% 0.35% 0.32%
2018 Estimated White 79.99% 73.44% 59.20%
2018 Estimated Black or African American 1.24% 1.52% 1.85%
2018 Estimated Asian or Pacific Islander 2.97% 4.40% 9.57%
2018 Estimated American Indian or Native Alaskan 1.41% 1.27% 1.08%
2018 Estimated Other Races 29.76% 28.36% 25.77%
2018 Estimated Hispanic 75.58% 74.53% 69.44%
2018 Estimated Average Household Income $83,511 $89,909 $91,803
2018 Estimated Median Household Income $65,146 $68,481 $71,082
2018 Estimated Per Capita Income $26,284 $27,159 $27,199
2018 Estimated Total Businesses 781 5,100 11,973
2018 Estimated Total Employees 9,117 60,037 155,860
SRS NATIONAL NET LEASE GROUP
17 ACTUAL SITE
RENT ROLLLEASE TERM RENTAL RATES
TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS
Select Comfort Retail Co. 4,452 Jun 2018 Jun 2025 Current - $13,356 $3.00 $160,272 $36.00 NNN* 2 (5-Year)
(Corporate Guaranty) 10% Incr. at beg.
of each option
(1) Landlord responsible for roof, structure, parking lot (covered by Landlord warranty).
SRS NATIONAL NET LEASE GROUP
FINANCIAL INFORMATION
Price: $3,195,000
Net Operating Income: $160,272
Cap Rate: 5.02%
Guaranty: Corporate
PROPERTY SPECIFICATIONS
Year Built/Renovated: 1952/2018
Rentable Area: 4,452 SF
Land Area: 0.46 Acres
Address: 13553 Whittier Boulevard, Whittier, CA
90605
18 ACTUAL SITE
BRAND PROFILE
SLEEP NUMBERThe leader in sleep innovation, Sleep Number delivers proven, quality sleep through effortless, adjustable comfort and biometric sleep tracking. Sleep Number’s revolutionary 360 smart bed and proprietary SleepIQ technology platforms are proving the connection between sleep and well-being. With one of the most comprehensive databases of biometric consumer sleep data and ranked #1 in J.D. Power’s 2018 Mattress Satisfaction Report, Sleep Number is improving lives by individualizing sleep experiences. And with a commitment to improving the well-being of over one million youth by 2025, Sleep Number is redefining the future of health and wellness – for everyone.
SRS NATIONAL NET LEASE GROUP
Company Type: Public (NASDAQ: SNBR) 2018 Employees: 569 2018 Revenue: $1.53 Billion
2018 Net Income: $69.54 Million 2018 Total Assets: $500 Million
YTD STOCK CHART
This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are pro-vided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive sub-market conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.
*STATISTICS ARE FOR 2017
1000+PROPERTIES CURRENTLY REPRESENTED
600+CLIENTS REPRESENTED IN 2016
$2.6B*TRANSACTION VALUE
20+OFFICES
250+BROKERS, PROFESSIONALS, AND STAFF
#1LARGEST REAL ESTATE FIRM
EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA