yoshinoya & banfield pet hospital · 2019-09-03 · banfield pet hospital was founded in...

YOSHINOYA &BANFIELD PET HOSPITAL

OFFERED AT: $5,524,000 | 5% CAP

Actual Property

INVESTMENT OPPORTUNITY

ESCONDIDO, CA | (SAN DIEGO COUNTY)

NEW 10-YEAR CORPORATENNN LEASES

EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEWS AREA OVERVIEW

YOSHINOYA & BANFIELD PET HOSPITAL | Escondido, CA (San Diego County) | 2

4 Offering Summary5 Investment Highlights6 Rent Roll & Cash Flow Projection

EXECUTIVE SUMMARY

8 Location Maps9 Site Plan10 Property Photos13 Neighboring Tenants14 Aerials

PROPERTY INFORMATION

20 Lease Overview & Abstract - Yoshinoya22 Lease Overview & Abstract - Banfield

TENANT OVERVIEWS

25 Escondido Overview26 San Diego County Overview27 Demographics

Confidentiality Agreement & Disclosures

AREA OVERVIEW

EXCLUSIVELY REPRESENTED BY

TABLE OF CONTENTS

Color Scheme

Fonts

GOTHAM/ BLACKGOTHAM/ MEDIUMGOTHAM/ LIGHT

CMYK C:0 / M:100 / Y:65 / K:47

RGB R:145 / G:0 / B:40

CMYK C:0 / M:0 / Y:0 / K65

RGB R:119 / G:120 / B:123

RYAN BARRPrincipal

[email protected]

Lic#01338994

RYAN BENNETTPrincipal

[email protected]

Lic#01826517

Actual Photo

EXECUTIVE SUMMARY

Actual Photo

YOSHINOYA & BANFIELD HOSPITAL | Escondido, CA (San Diego County) | 3

YOSHINOYA & BANFIELD PET HOSPITAL

Grand OpeningAugust 31, 2019



PROPERTY OVERVIEW

Address: 700 Centre City PkwyEscondido, CA 92025

Property Size: 5,404 Sq. Ft.Land Size: 0.758 AcresProperty Type: Multi-Tenant (2 Tenants)

YoshinoyaBanfield Pet Hospital

2,004 Sq. Ft.3,400 Sq. Ft.

Ownership: Fee SimpleYear Built: 2018

INVESTMENT HIGHLIGHTSOffering Price: $5,524,000Net Operating Income: $276,200Cap Rate: 5.00%Price/SF: $1,022

Lee & Associates is pleased to exclusively offer for sale, the fee simple interest (land & building) in a two-tenant retail property located in Escondido, California (the “Property”). This is a rare opportunity to acquire a net leased asset within San Diego’s highly desirable North San Diego market. Built in 2018, the building totals approximately 5,404 square feet and sits on an approximately 0.758-acre parcel. The Property is 100% leased to “internet resistant” tenants Yoshinoya and Banfield Pet Hospital. Yoshinoya and Banfield are on new Corporate 10-year NNN leases that feature scheduled rent increases every five years in the Primary Term and Option periods, providing an investor with a solid passive investment with consistent rent growth. Yoshinoya is a Japanese multinational fast food chain, and the second-largest chain of beef bowl restaurants. Founded in 1899, there are more than 2,000 locations worldwide in Japan, Hong Kong, China, Malaysia, Singapore, the Phillippines, Indonesia, Thailand, Cambodia, and in the state of California, in the United States.Banfield Pet Hospital is a privately owned company based in Vancouver, Washington. Founded in Portland, Ore. in 1955, Banfield is the largest general-veterinary practice in the U.S. In 2007, Banfield joined the Mars, Inc. family of businesses, and today has more than 1,000 hospitals across the United States and Puerto Rico. The subject property is located on the signalized hard corner intersection of Centre City Pkwy and Mission Ave, which sees combined traffic counts of 63,000 cars per day. Centre City Pkwy is a major retail/commuter corridor, with national tenants such as Lowe’s, Harbor Freight & Tools, Bank of America, PetSmart, Smart & Final Extra, Regal Cinemas, 99 Cents Only, Goodwill, and many more. Additionally, this corridor is a major commuter corridor for travelers to/from Hwy 78 (86,000 CPD), a major east-west artery to coastal cities and beaches, and to Interstate 15 (243,000 CPD), a prominent north-south freeway carrying travelers south to Downtown San Diego and north to Temecula, Riverside and beyond.The shopping center is centrally located in a dense retail and residential area, with over 222,000 people within a 5-mile radius with an average household income of nearly $93,000 and median home value of $445,000. The property offers outstanding proximity to nearby downtown Escondido and approximately 2 miles from Palomar Medical Center (Escondido’s largest employer) as well as several surrounding shopping centers anchored by Lowe’s, Walmart, Smart & Final Extra, Albertsons, and more, providing an outstanding draw to the trade area and excellent retail synergy. The subject property is located within the City of Escondido, a growing community in North San Diego County just 30 miles northeast of downtown San Diego and 20 minutes from the beach. Escondido is a diverse, vibrant community, and more and more people are making Escondido their “City of Choice.” The city offers attractive homes in a wide range of prices, two lakes, several parks, a sports center, golf courses, restaurants, wineries, shopping centers, comprehensive healthcare and the nearby San Diego Zoo Safari Park.Inland North San Diego County, of which Escondido is at the core, is emerging as a regional economic leader in the forefront of job development and new industries. Located within the 78 Corridor, which has become a hub for innovation. Escondido has a comprehensive mix of successful businesses, supplying a diverse job base and high quality of life.

-- OFFERING SUMMARY --

> Offering Summary < Rent Roll & Cash Flow ProjectionInvestment Highlights

CENTRE CITY PKWY (35,000 CPD)

W MISSION AVE (28,000 CPD)

Drive Thru (Yoshinoya)




-- INVESTMENT HIGHLIGHTS --

NEW CORPORATE 10-YEAR NNN LEASES • INTERNET RESISTANT TENANTS: YOSHINOYA (DRIVE-THRU) & BANFIELD PET HOSPITALBuilt in 2018, the 5,404-square-foot two-tenant retail building is 100% leased to Yoshinoya (Drive-Thru) and Banfield Pet Hospital on Corporate Leases. Yoshinoya and Banfield both have new 10-year NNN leases that feature rent increases every five years in the Primary Term and Option periods, providing an investor with a solid passive investment with consistent rent growth.

• Yoshinoya is a Japanese multinational fast food chain, and the second-largest chain of beef bowl restaurants. Founded in 1899, there are more than 2,000 locations worldwide in Japan, Hong Kong, China, Malaysia, Singapore, the Phillippines, Indonesia, Thailand, Cambodia, and in the state of California, in the United States.

• Banfield Pet Hospital was founded in Portland, OR in 1955 and is the largest privately-owned veterinary practice in the U.S. with an estimated annual revenue of $800 million. In 2007 they became a wholly owned subsidiary of Mars, Inc. and now operate over 1,000 pet clinics in the U.S., Mexico, Puerto Rico, and the UK.

SIGNALIZED HARD CORNER LOCATION (63,000 CPD) • CLOSE PROXIMITY TO INTERSTATE 15 (243,000 CPD) & CA 78 FREEWAYS (86,000 CPD) The subject property is located at the signalized hard corner intersection of Centre City Pkwy & Mission Avenue, which sees combined traffic counts of 63,000 cars per day. Centre City Pkwy is a major retail/commuter corridor, with national tenants such as Lowe’s, Harbor Freight & Tools, Bank of America, PetSmart, Smart & Final Extra, Regal Cinemas, 99 Cents Only, Goodwill, and many more. Additionally, this corridor is a major commuter corridor for travelers to/from Hwy 78 (86,000 CPD), a major east-west artery to coastal cities and beaches, and to Interstate 15 (243,000 CPD), a prominent north-south freeway carrying travelers south to Downtown San Diego and north to Temecula, Riverside and beyond.

DENSE INFILL LOCATION (OVER 220,000 PEOPLE WITHIN 5 MILES) • 2 MILES FROM PALOMAR MEDICAL CENTER (ESCONDIDO’S LARGEST EMPLOYER • PROXIMITY TO DOWNTOWN ESCONDIDOThe building is centrally located in a dense retail and residential area, with over 222,000 people within a 5-mile radius with an average household income of nearly $93,000 and median home value of $445,000. The property offers outstanding proximity to nearby downtown Escondido offices as well as several surrounding shopping centers anchored by Lowe’s, Walmart, Smart & Final Extra, Albertsons, and more, providing an outstanding draw to the trade area and excellent retail synergy.

LOCATED IN DESIRABLE NORTH SAN DIEGO COUNTY MARKET • CENTRALLY LOCATED BETWEEN DOWNTOWN SAN DIEGO & TEMECULA/RIVERSIDE COUNTY • REGIONAL ECONOMYThe subject property is located within the City of Escondido, a growing community in North San Diego County just 30 miles northeast of downtown San Diego and 20 minutes from the beach. Escondido is a diverse, vibrant community, and more and more people are making Escondido their “City of Choice.” The city offers attractive homes in a wide range of prices, two lakes, several parks, a sports center, golf courses, restaurants, wineries, shopping centers, comprehensive healthcare and the nearby San Diego Zoo Safari Park.Inland North San Diego County, of which Escondido is at the core, is emerging as a regional economic leader in the forefront of job development and new industries. Located within the 78 Corridor, which has become a hub for innovation. Escondido has a comprehensive mix of successful businesses, supplying a diverse job base and high quality of life.

Offering Summary Rent Roll & Cash Flow Projection> Investment Highlights <



-- RENT ROLL --

Offering Summary > Rent Roll & Cash Flow Projection <Investment Highlights

Tenant NameLease Dates

Lease Term(Months)

Size (Sq. Ft.)Bldg Share

Rent/SF/YearAnnual Rent

Rent/SF/MoMonthly Rent

Increase Date New Rent/Yr Lease Type Renewal Options

YoshinoyaJan-2019 to Jan-2029

120 2,00437.08%

$56.39$113,000

$4.70$9,416

Feb-2024 $118,800 NNN (4) 5-Year OptionsRent Increases in

OptionsBanfield Pet HospitalJul-2019 to Jun-2029

120 3,40062.92%

$48.00$163,200

$4.00$13,600

Jul-2024 $179,520 NNN (2) 5-Year OptionsRent Increases in

Options Total Occupied SqFt 5,404 $276,200 $23,016

-- CASH FLOW PROJECTION --

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10FOR THE YEARS ENDING Aug-2020 Aug-2021 Aug-2022 Aug-2023 Aug-2024 Aug-2025 Aug-2026 Aug-2027 Aug-2028 Aug-2029POTENTIAL GROSS REVENUE

Base Rental Revenue $276,200 $276,200 $276,200 $276,200 $282,786 $298,320 $298,320 $298,320 $298,320 $293,207 Scheduled Base Rental Revenue 276,200 276,200 276,200 276,200 282,786 298,320 298,320 298,320 298,320 293,207 Expense Reimbursement Revenue 83,046 84,708 86,400 88,130 89,890 91,690 93,525 95,392 94,961 70,805

Total Potential Gross Revenue 359,246 360,908 362,600 364,330 372,676 390,010 391,845 393,712 393,281 364,012 Effective Gross Revenue 359,246 360,908 362,600 364,330 372,676 390,010 391,845 393,712 393,281 364,012 OPERATING EXPENSES

Taxes 60,865 62,082 63,325 64,590 65,883 67,200 68,544 69,915 71,314 41,954 Insurance 2,058 2,098 2,140 2,182 2,227 2,271 2,317 2,363 2,410 2,458 CAM 18,294 18,660 19,033 19,414 19,802 20,199 20,602 21,014 21,435 21,863 Administtrative Fee 1,829 1,866 1,903 1,942 1,980 2,019 2,060 2,101 2,143 2,185

Total Operating Expenses 83,046 84,706 86,401 88,128 89,892 91,689 93,523 95,393 97,302 68,460 Net Operating Income 276,200 276,202 276,199 276,202 282,784 298,321 298,322 298,319 295,979 295,552

Actual Photo

PROPERTY INFORMATION

Actual Photo






-- LOCATION MAPS --

Property Photos> Location Maps < AerialsSite Plan Neighboring Tenants

El Cajon

Carlsbad

Oceanside

Chula Vista

San Diego

SUBJECTPROPERTY

Vista

La Jolla

Fallbrook

La Mesa

19 Miles

32 Miles

33 M

iles

DRIVE DISTANCECarlsbad 19 miLa Jolla 32 miSan Diego 33 mi

San MarcosESCONDIDO

Summer CreekApartments

LincolnElementary School

Centre City Pkwy

W Valley Pkwy

Del Dios Academy of Arts and

Sciences

Hidden CoveApartments

Lake Bernardo Mobile Estates

Ice-PlexEscondido

Village GroveApartments

Casa EscondidoApartments

Kaiser Permanente

San Diego CountyPublic Health

California Centerfor the Arts

ESCONDIDO

W Mission Ave

W Mission Ave

N Ash St

E Washington Ave

MissionMiddle School

Palomar Medical Center

Scripps Medical Center



-- SITE PLAN --

DOUBLEDRIVETHRU

DRIVE-THRU

CENTRE CITY PARKWAY

WE

ST

MIS

SIO

N A

VE

NU

E

SITE PLAN

CENTRE CITY PKWY

W M

ISSI

ON

AVE

Property PhotosLocation Maps Aerials> Site Plan < Neighboring Tenants

PARCEL 3



-- FRONT OF BUILDING --

> Property Photos <Location Maps AerialsSite Plan Neighboring Tenants



-- YOSHINOYA’S DRIVE THRU WINDOW --




-- LOOKING AT BUILDING FROM CENTRE CITY PKWY --




-- NEIGHBORING TENANTS -- Stanton Optical & Habit Burger

Location Maps Property Photos Aerials> Neighboring Tenants <Site Plan



-- OVERHEAD VIEW --

Location Maps Property Photos > Aerials <Neighboring TenantsSite Plan

*AVAILABLE*

Combined Traffic Counts 63,000 CPD W MISSION AVE

(28,000 CPD)


ACCESS

Drive Thru(Yoshinoya)


ACCESS



-- LOOKING NORTH --

ESCONDIDOADULT SCHOOL

LINCOLN ELEMENTARY SCHOOL

LINCOLN HEIGHTS APARTMENTS

To Beach Cities18 Miles

SUMMER CREEK APARTMENTS

TERRACE GARDEN APARTMENTS

HACIENDADEL NORTE

ESCONDIDO MANOR APARTMENTS

SIENNA HILLSAPARTMENTS

ESCONDIDOHIGH SCHOOLFOREST GLEN

APARTMENTS

VALLEY CENTER

HIDDEN MEADOWS

*AVAILABLE*


86,000 CPD



N ESCONDIDO BLVD (28,000 CPD)

W MISSION AVE (28,000 CPD)Combined Traffic Counts

63,000 CPD

HIDDEN VALLEYVILLAS



-- LOOKING EAST --

ESCONDIDO CHAMBER OF COMMERCE

CASA ESCONDIDAAPARTMENTS

ESCONDIDOADULT SCHOOL

PALOMAR MEDICAL CENTER

MISSION TERRACEAPARTMENTS

*AVAILABLE*

MISSIONMIDDLE SCHOOL

WESTMONT COURT SENIOR LIVING

ALCOVE LUXURYAPARTMENTS


86,000 CPDW WASHINGTON AVE




Combined Traffic Counts 63,000 CPD




-- LOOKING SOUTH --

N QUINCE ST

W WASHINGTON AVE W WASHINGTON AVE W WASHINGTON AVE

To San Diego33 Miles

POWAYRANCHO SANTA FE

*AVAILABLE*

LATITUDE 33APARTMENTS

VILLAGE GROVEAPARTMENTS

ESCONDIDOWORLD MARKETPLACE

CALIFORNIA CENTER FOR THE ARTS

ESCONDIDOCITY HALL


QUINCE PARKAPARTMENTS

PREMIUM AUTOWESS TRANSPORTATION

M&N INVESTORSWICKLINE BEDDING

ESCONDIDO FIRE DEPT STATION 1

NORTH SAN DIEGO COUNTY TRANSIT ESCONDIDO PUBLIC

WORKS DEPARTMENT

HIDDEN COVEAPARTMENTS


243,000 CPD





RANCHO BERNARDO



-- LOOKING WEST --

N QUINCE ST

To San Diego37 Miles

SAN MARCOSCARLSBADENCINITAS

VILLAGE GROVEAPARTMENTS

ESCONDIDOWORLD MARKETPLACE

QUINCE PARKAPARTMENTS

NORTH INLANDLIVE WELL CENTER

N QUINCE ST

DAVE MCMAHON CONSTRUCTION

CEMEX-PALOMARESCONDIDO

ESCONDIDORESOURCE RECOVERY

PARKHOUSE TIRE INC

W WASHINGTON AVE

BOMBARDIERTRANSPORTATION

• MASTER BRAKE & MUFFLER• SITEONE LANDSCAPE SUPPLY• GREEN GUARD SERVICES• GREATSOIL• FIRESTONE FARM TIRES

ESCONDIDOFEED & SUPPLY

VINEYARD INDUSTRIAL PARK

PALOMAR MEDICAL CENTER

ESCONDIDO UNION SCHOOL DISTRICT



243,000 CPD

86,000 CPD





*AVAILABLE*

FOUNDATION BUILDING MATERIALS

Actual Photo

TENANT OVERVIEWS

Actual Photo






-- RENT SCHEDULE ---- LEASE OVERVIEW --

LEASE INFORMATION

Tenant: Yoshinoya America, Inc. (Corporate)

Size: 2,004 Sq. Ft.

% of Total Leaseable SF: 37.08% (12.43% of Center)

Rent Commencement: January 19, 2019

Lease Expiration: January 31, 2029

Original Lease Term: 10 Years

Lease Term Remaining: 9+ Years

Renewal Options: (4) 5-Year Options

Annual Rent: $113,000

Rent Increases: 5%% Increase Every 5 Years in Primary & Options

Lease Type: NNN

Administrative Fee: 10% of CAM

RENT SCHEDULE - PRIMARY TERM

START DATE END DATE NOI/YR NOI/MO NOI/SF/YR INCREASE

Years 1 - 5 1/19/2019 1/31/2024 $113,000.00 $9,416.67 $56.39 --

Years 6 - 10 2/1/2024 1/31/2029 $118,800.00 $9,900.00 $59.28 4.5%

OPTION PERIODS - (4) 5-Year Options

Option 1 2/1/2029 1/31/2034 $130,680.00 $10,890.00 $65.21 10%

Option 2 2/1/2034 1/31/2039 $143,748.00 $11,979.00 $71.73 10%

Option 3 2/1/2039 1/31/2044 $158,123.00 $13,176.92 $78.90 10%

Option 4 2/1/2044 1/31/2049 $173,935.00 $14,494.58 $86.79 10%

Yoshinoya is a Japanese multinational fast food chain, and the second-largest chain of beef bowl restaurants. The story of Yoshinoya begins in the bustling Nihonbashi Fish Market of Chuoku Tokyo in 1899. Here, hard-working fisherman were often hungry, but too busy to stop for a hot meal. Yoshinoya’s founder, Eikichi Matsuda, saw this need and knew he could help. So he opened a whole

new type of restaurant: one serving hot, tasty rice bowls that were fast and affordable. He named it Yoshinoya and it became a popular place for fisherman & locals. Word traveled quickly, and Yoshinoya developed a loyal following. Today, there are more than 2,000 locations worldwide: Japan, Hong Kong, China, Malaysia, Singapore, the Phillippines, Indonesia, Thailand, Cambodia, and in the state of California, in the U.S.Japanese-inspired cooking is the essence of the menu. The main menu in the United States includes the beef bowl, chicken bowl, combo bowl, and shrimp bowl, along with soup and desserts, and has variations such as “beef with vegetables bowls”, “teriyaki chicken bowls”, and barbecue-style plates.

-- TENANT INFORMATION --

> Yoshinoya < Banfield Animal Hospital



-- YOSHINOYA LEASE ABSTRACT --

> Yoshinoya < Banfield Animal Hospital

PROPERTY TAXES Tenant shall pay Landlord the amount of Real Property Taxes levied and assessed upon the Premises and the underlying realty, prorated for any partial years, based upon the portion of the taxable year covered by the Lease Term.

COMMON AREA EXPENSES

The term “Common Area Expenses” as used herein shall mean, except as set forth in subparagraphs l l.4(a) and (b) below, all costs and expenses incurred by Landlord in connection with the general maintenance, operation, ownership and repair of the Shopping Center; the cost of all charges for electricity, gas, water and other utilities furnished to the Shopping Center, including any taxes thereon; charges for all insurance for the Shopping Center carried by Landlord; the cost of all building and cleaning supplies and materials; all license, permit and inspection fees relating to the Shopping Center; and all charges, assessments, and other costs arising under the Declaration.

(a)Tenant’s Pro Rata Share of Common Area Expenses for the first Lease Year shall not exceed the lesser of actual Common Area Expenses or $1 .00 per square foot of rentable space per month. In addition, and notwithstanding anything to the contrary contained herein, the portion of Tenant’s additional rent attributable to Common Area Expenses for any calendar year shall not exceed one hundred five percent (105%) of the portion of Tenant’s annual additional rent attributed to the actual Common Area Expenses for the previous year. .

LANDLORD MAINTENANCE

Landlord shall, at Landlord’s sole cost and expense, and at all times, keep the roof, roof membrane, roof systems (gutters, downspouts, etc.) exterior walls, and electrical, gas, water and other mechanical and utility service systems of the Premises in good order, condition and repair. Such obligation to repair shall include any mechanical, electrical, HV AC and plumbing systems which serve the Shopping Center as a whole and not a particular tenant’s premises. Landlord may allocate the cost of such maintenance equitably between Tenant and the other tenant(s) occupying the Building.

TENANT MAINTENANCE / CAPITAL IMPROVEMENTS

Tenant shall, at Tenant’s sole cost and expense, and at all times, keep the Premises and every part thereof, except for the roof, roof membrane, and roof systems (gutters, down spouts, etc.), exterior walls, and electrical, gas, water, and other mechanical and utility service systems in good order, condition, and repair, reasonable wear and tear excepted.

Tenant shall be obligated to make capital expenditures to repair or replace appliances and/or mechanical and utility service systems even if the life of such mechanical or utility service systems extends beyond the Lease Term. However, in such event, the costs of such capital improvement shall be prorated by multiplying the cost to Tenant of the capital improvement by a fraction, the numerator of which shall be the time remaining on Tenant’s Lease and the denominator of which shall be the life expectancy of the i mprovement. Tenant shall be entitled to recover from the next funds due to Landlord the additional costs over and above said sum.

UTILITIES Tenant shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. If any services are not separately metered to Tenant, Tenant shall pay a reasonable proportion of all charges jointly metered with other premises.

ASSIGN/SUBLET Tenant shall have the right, without the consent of Landlord, to assign or otherwise transfer or sublet the Premises (collectively, “Transfer”).

ESTOPPEL CERTIFICATE

Each party shall, on written request from the other party, which request shall quote this Paragraph 20, execute a written statement certifying to its knowledge, whether or not this Lease is modified and whether or not this Lease is in full force and effect (or, if there had been modifications, stating those modifications) and whether or not either party has failed to perform an obligation under this Lease, and if so, the nature of the failure. Neither party shall be obligated to respond to a request to execute a statement which attempts to modify any of the terms or conditions of this Lease.

If Landlord desires to finance, refinance, or sell the Premises, any part thereof, or the building of which the Premises are a part, Tenant shall deliver to Landlord a financial statement of Tenant, which said statement is presently in existence or prepared in the ordinary course of business and not more than twelve (12) months old, as may be reasonably required by Landlord for such purposes.



-- RENT SCHEDULE ---- LEASE OVERVIEW --

Banfield Pet Hospital is a privately owned company based in Vancouver, Washington. Founded in Portland, OR in 1955, Banfield is the largest privately-owned veterinary practice in the U.S. with an estimated annual revenue of $800 million. In 2007, Banfield joined the Mars, Inc. family of businesses, and today has more than 1,000 hospitals across the United States and

Puerto Rico. More than 3,600 Banfield veterinarians are committed to providing high-quality veterinary care for over three million pets annually. In 2018, Banfield, including the work of the Banfield Foundation, was named among Points of Light’s The Civic 50 as one of the most community-minded companies in the U.S. for the second consecutive year. Everyone at Banfield shares a common goal: providing high-quality preventive health care for each pet, and partnering with every pet owner to ensure they have the resources to care for pets at home.

-- TENANT INFORMATION --

LEASE INFORMATION

Tenant: Banfield Pet Hospital (Corporate)

Size: 3,400 Sq. Ft.

% of Total Leaseable SF: 62.92% (21.15% of Center)

Rent Commencement: July 1, 2019

Lease Expiration: June 30, 2029

Original Lease Term: 10 Years

Lease Term Remaining: 9+ Years

Renewal Options: (2) 5-Year Options

Annual Rent: $163,200

Rent Increases: 10% Increase Every 5 Years

Lease Type: NNN

Administrative Fee: 10% of CAM

RENT SCHEDULE - PRIMARY TERM

START DATE END DATE NOI/YR NOI/MO NOI/SF/YR INCREASE

Years 1 - 5 7/1/2019 6/30/2024 $163,200.00 $13,600.00 $48.00 --

Years 6 - 10 7/1/2024 6/30/2029 $179,520.00 $14,960.00 $52.80 10%

OPTION PERIODS - (2) 5-Year Options

Option 1 7/1/2029 6/30/2034 $197,472.00 $16,456.00 $58.08 10%

Option 2 7/1/2034 6/30/2039 $217,056.00 $18,088.00 $63.84 10%

Yoshinoya > Banfield Pet Hospital <



-- BANFIELD PET HOSPITAL LEASE ABSTRACT --

PROPERTY TAXES From and after the Commencement Date, Tenant shall pay Tenant’s Share of Taxes due and payable during the time period attributable to the Lease Term in equal monthly installments based on Landlord’s reasonable estimate of Tenant’s Share of Taxes for the current year.

COMMON AREA EXPENSES / ADMINISTRATIVE FEE / TENANT’S SHARE, CONTROLLABLE CAM CHARGES

During the Lease Term, Tenant shall pay Tenant’s Share of all actual costs and expenses of every kind and nature paid or incurred by Landlord in operating, maintaining, managing, repairing, lighting, cleaning and/or insuring the Center (collectively, “CAM Charges”), including but not limited to: the costs of cleaning, lighting, repairing, maintaining, painting, operating and managing all Common Area improvements; including, but not limited to, maintenance, repair and painting of exterior walls, roofs, stairways, parapets, flashing, gutters and downspouts, resurfacing and restriping of driveways and parking areas; trash removal and disposal, snow removal, storm debris removal and clean-up costs; pest control; landscaping; security (provided that Landlord is not required to provide security to the Premises or the Center); supplies; fire protection; utility charges; licenses and pennit fees to the extent applicable to the operation of the Common Areas.

Tenant shall also pay property management, administrative, and similar fees, costs and expenses (whether paid to Landlord or a third-pmiy) in an amount not to exceed ten percent (10%) of CAM Charges (excluding any costs for utilities, Taxes and Insurance) (the “Administrative Fee”)..

Tenant’s liability for CAM Charges, Taxes and Insurance for the initial partial year and first full calendar year following the Commencement Date are estimated to be (i) $0.38 per square foot of the Premises for Insurance; (ii) $9.35 per square foot of the Premises for Taxes; and (iii) $2.87 per square foot of the Premises for CAM Charges, for a total of$12.60 per square foot annually.

After the first full calendar year following the Commencement Date, Tenant’s liability for Controllable CAM Charges (as hereinafter defined) for any calendar year shall not increase by more than five percent (5%) over the amount payable by Tenant for Controllable CAM Charges for the prior year, computed on a non-cumulative basis. The term “Controllable CAM Charges” means all CAM Charges other than the costs of the following (which shall not be subject to the 5% cap on increases but shall increase at a rate that such costs actually increase): Common Area utilities, insurance premiums, Taxes, snow removal and garbage and refuse pickup.

LANDLORD REPAIRS/MAINTENANCELandlord shall maintain and repair in good condition, and replace as necessary, all structural elements of the Premises (including, without limitation, structural supports and walls and foundations), the roof and roof membrane of the Premises, all utilities serving the Premises (up to the point of connection to the Premises), and any mechanical, electrical or plumbing systems not located within and exclusively serving the Premises. The costs of the foregoing repairs and maintenance shall be the sole cost and expense of Landlord.

TENANT REPAIRS/MAINTENANCE

Tenant, at Tenant’s sole expense, shall keep and maintain the Premises including, but not limited to, light fixtures, ceilings, exterior and interior doors, floor coverings, exterior and interior windows, storefront, signs, non-structural walls, the plumbing and sewage facilities exclusively serving the Premises (after the point of connection to the Premises), electrical equipment located within and exclusively serving the Premises, in good and clean condition (using materials of equal or better quality than the materials being repaired or replaced and in compliance with all applicable laws), except for ordinary wear and tear and damage by casualty, condemnation or the negligence or willful misconduct of Landlord or its employees, agents or contractors. Tenant, at Tenant’s expense, shall keep the HV AC system exclusively serving the Premises in good order and repair, including maintaining, repairing and replacing the HV AC system provided, however that Landlord shall assign to Tenant any wan-anties on the HV AC system, and Landlord and Tenant shall share equally in the expense of replacing the HV AC system if it becomes necessary in the last three (3) years of the Term.

UTILITIES Tenant shall pay prior to delinquency all charges for water, heat, sewer, gas, electricity, telephone service and all other utilities consumed in the Premises and shall pay for trash removal from Tenant’s trash enclosure

ASSIGN/SUBLET Tenant shall not assign,this Lease or sublease all or any portion of the Premises (a “Transfer”) without Landlord’s advance written consent, consent shall not be unreasonably withheld, conditioned or delayed.

ESTOPPEL CERTIFICATE

Each party shall, within ten (10) business days after the other pmiy’s written request, execute and deliver to the requesting party a written statement certifying: (i) that this Lease is in full force and effect; (ii) that none of the terms or provisions of this Lease have been changed ( or if they have been changed, stating how they have been changed); (iii) the last date of payment of the Rent and the time period covered by such payment; (iv) that the other party is not, to the ce1iifying pmiy’s actual knowledge, in default under this Lease (or, if the other party is in default, stating why); and (v) such other factual matters related to this Lease as may be reasonably requested.

Yoshinoya > Banfield Pet Hospital <

Actual Photo

AREA OVERVIEW

Actual Photo






-- ESCONDIDO OVERVIEW --

> Escondido Overview < DemographicsSan Diego County Overview

THE HEART OF SAN DIEGO • DIVERSE JOB BASE • HIGH QUALITY OF LIFEEscondido is a city located in San Diego’s North County region. Incorporated in 1888, it is one of the oldest cities in San Diego County. It lies about 18 miles inland, 30 miles northeast of San Diego and 100 miles south of Los Angeles. Escondido tends to have a typical Mediterranean climate with warm summers and cool wet winters. Owing to its inland setting it is considerably warmer than coastal cities like San Diego, Carlsbad or Oceanside during the summertime, and cooler in the winter. Surrounded by avocado and citrus groves, Escondido is a diverse, vibrant community with just the right mix of small town friendliness and big-city buss. More

and more people are making Escondido their “City of Choice.” As the self-proclaimed “heart” of San Diego North, it is one of the few remaining communities where people of all income levels can enjoy the Southern California lifestyle. The city offers attractive homes in a wide range of prices, two lakes, several parks, a sports center, golf courses, restaurants, wineries, shopping centers, comprehensive healthcare and the nearby San Diego Zoo Safari Park. In addition, the California Center for the Arts, Escondido, brings world class entertainment to the area along with Queen Califia’s Magical Circle, a sculpture garden in Kit Carson Park donated by late internationally renowned artist Niki de Saint Phalle. In recent years Escondido was named by Money Magazine as the Best Place in the West in which to retire and, at the other end of the spectrum, was named a Kid-Friendly City for their broad range of youth programs. Ladies Home Journal also ranked Escondido number eight among the Top Ten Cities for Government.

Inland North San Diego County, of which Escondido is at the core, is emerging as a regional economic leader in the forefront of job development and new industries. Escondido has a comprehensive mix of successful businesses, supplying a diverse job base and high quality of life. Escondido is located within the 78 Corridor, which has become a hub for innovation. From Oceanside to Escondido, the 78 Corridor has an ecosystem rich with companies and a talented

workforce to take any concept from design to production. The companies within these industries aren’t just focused on doing business along the corridor. They are nationally and globally recognized leaders in innovation. From life sciences to military and defense, to manufacturing and action sports, the 78 Corridor is at the cutting edge of products that change the way we live, change the way our military communicates and change the way we think about the future. Some of the companies located in Escondido within this corridor that call Escondido home include:

• Palomar Medical Center: Nationally recognized care center offering cutting-edge technology

• Aurora Biochem: Research and development of personal care products using herbal compounds

• Stone Brewing: One of the largest craft breweries in the U.S.

• BMT Scientific Marine Services: Builds custom engineered offshore marine services and solutions

• Buster Biofuels: Waste management service• TransPower: Energy-related products and services related to advanced

clean transportation and energy storage



-- SAN DIEGO COUNTY OVERVIEW --

Escondido Overview Demographics> San Diego County Overview <

With breakthrough technology companies and research organizations, the largest military concentration in the world and a strong tourism industry, the San Diego region has one of the most diverse, dynamic economies in the country.

San Diego County is the second-most populous county in California and the fifth-most populous in the United States. Situated in Southern California, the San Diego area is known for its mediterranean climate,

ethnic diversity, sprawling metropolis, and as a major hub for the country’s military industry. The culture of San Diego is influenced heavily by American and Mexican cultures due to its position as a border town, its large Hispanic population, and its history as part of Spanish America and Mexico.

The county’s largest continuous high-income urban area is a triangle from a first point on the northern edge of Carlsbad, a second point southeast of Escondido, and a third point on the southern edge of La Jolla. Inland North San Diego County, of which Escondido is at the core, is emerging as a regional economic leader in the forefront of job development and new industries.

Tourists are drawn to the region for everything from shopping to surfing as well as its mild climate. The area features many historical attractions, a thriving musical and theatrical scene, numerous notable special events, professional sports events, a varied cuisine, and a reputation as one of America’s premier centers of craft brewing, with over 100 craft/micro/nano breweries throughout the county that have been sweeping award ceremonies at national and international contests.

The San Diego visitor industry is the third largest industry in the county, and plays a huge role in the region’s economy, generating more than $704.6 million annually in state and local taxes and employing over 180,000 San Diegans - 13% of the jobs in the county. Approximately 34.3 million tourists visit San Diego every year, spending nearly $9.9 billion annually at San Diego businesses and produce $246 million in transient occupancy tax revenues.

The region is host to the third-largest cruise ship industry in California which generates an estimated $2 million an-nually from purchases of food, fuel, supplies, and maintenance services. Three cruise lines home-port in San Diego: Holland America, Celebrity Cruises, and Disney Cruise Line. Holland America uses San Diego as a home port during the winter season. Disney Cruise Line has seasonal Mexican cruises in the spring and fall, as well as a Panama Canal cruise at the end of the visit. Multiple other cruise lines use San Diego as a port of call. In 2019 the Port of San Diego expects to host 92 cruise calls and nearly 300,000 passengers.

San Diego has a strong military presence with 16 naval and military installations of the U.S. Navy, U.S. Marine Corps, and the U.S. Coast Guard. It is the headquarters of the U.S. Navy’s Eleventh Naval District and is the Navy’s principal location for West Coast and Pacific Ocean operations. Naval Base San Diego, California is principal home to the Pacific Fleet (although the headquarters is located in Pearl Harbor). NAS North Island is located on the north side of Coronado, and is home to Headquarters for Naval Air Forces and Naval Air Force Pacific, the bulk of the Pacific Fleet’s helicopter squadrons, and part of the West Coast aircraft carrier fleet. The Naval Special Warfare Center is the primary training center for SEALs, and is also located on Coronado. The area contains five major naval bases and the U.S. Marines base Camp Pendleton. Marine Corps Base Camp Pendleton is the major West Coast base of the United States Marine Corps and serves as its prime amphibious training base. It is located on the Southern California coast, bordered by Oceanside to the south, San Clemente to the north, and Fallbrook to the east.

Education in San Diego is as innovative as many of its industries. The region has established public charter schools that have influenced primary and secondary education across the country. In addition, with its more than 80 universities – including the largest engineering school in the state – and world-class research institutions, San Diego is well-positioned to compete globally in attracting some of the most talented engineers, scientists and technology professionals in the world. The quality of life in the region, combined with strong technology-based industries, means only the best and brightest work and live here. Add to that a robust service sector with professionals in finance, marketing, sales, facilities management and other administrative positions, San Diego is a thriving, diverse economy.



-- DEMOGRAPHICS --

Escondido Overview > Demographics <San Diego County Overview

Approximately 6 million people live within a 60-minute drive of Escondido.

Escondido’s median age is 32.8 compared to the U.S. median of 37.5 years.This young demographic provides employers a significant source of active, well-educated workers.

Escondido’s median income is $64,068 which surpasses the National Average of $53,133.

Future job growth is expected to increase 34.32% in next 10 years.

Escondido has the lowest median cost of homes in San Diego County.

The City of Escondido boasts a 52% owner occupancy rate of its single-family homes.

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SUMMARY PROFILE2000-2010 Census, 2019 Estimates with 2024 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 33.1265/-117.0905

700 Centre City Parkway1 mi radius 3 mi radius 5 mi radius

Escondido, CA 92025

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2019 Estimated Population 0 T 29,495 156,289 223,177

2024 Projected Population 0 T 30,339 160,445 228,866

2010 Census Population 0 T 26,275 145,050 205,298


Projected Annual Growth 2019 to 2024 - 0.6% 0.5% 0.5%

Historical Annual Growth 2000 to 2019 - 0.5% 0.8% 1.1%

2019 Median Age 31.6 34.6 35.4

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OLD

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2019 Estimated Households 0 T 9,054 49,493 71,338

2024 Projected Households 0 T 9,400 51,472 74,160

2010 Census Households 0 T 8,111 45,908 65,609




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AN

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ETH

NIC

ITY

2019 Estimated White - 49.9% 57.9% 60.1%

2019 Estimated Black or African American - 3.1% 2.9% 2.9%

2019 Estimated Asian or Pacific Islander - 5.5% 7.1% 7.9%

2019 Estimated American Indian or Native Alaskan - 1.2% 1.0% 0.9%

2019 Estimated Other Races - 40.3% 31.0% 28.1%

2019 Estimated Hispanic - 67.2% 50.8% 46.0%

INC

OM

E 2019 Estimated Average Household Income $0 T $56,366 $80,326 $90,934

2019 Estimated Median Household Income $0 T $48,709 $69,663 $77,087

2019 Estimated Per Capita Income $0 T $17,498 $25,590 $29,196E

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CA

TIO

N(A

GE

25+

)2019 Estimated Elementary (Grade Level 0 to 8) - 22.2% 13.6% 12.1%

2019 Estimated Some High School (Grade Level 9 to 11) - 9.7% 8.5% 7.5%

2019 Estimated High School Graduate - 23.6% 22.9% 21.5%

2019 Estimated Some College - 22.2% 23.3% 22.7%

2019 Estimated Associates Degree Only - 6.5% 8.0% 8.8%

2019 Estimated Bachelors Degree Only - 11.3% 16.0% 18.2%

2019 Estimated Graduate Degree - 4.4% 7.6% 9.2%

BU

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S 2019 Estimated Total Businesses 0 T 2,711 6,907 8,900

2019 Estimated Total Employees 0 T 26,647 63,047 82,492

2019 Estimated Employee Population per Business - 9.8 9.1 9.3

2019 Estimated Residential Population per Business - 10.9 22.6 25.1

©2019, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 4/2019, TIGER Geography

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LDS

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ION

1 Mile 3 Miles 5 Miles

SUMMARY PROFILE2000-2010 Census, 2019 Estimates with 2024 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 33.1265/-117.0905

700 Centre City Parkway1 mi radius 3 mi radius 5 mi radius

Escondido, CA 92025

PO

PU

LATI

ON

2019 Estimated Population 0 T 29,495 156,289 223,177

2024 Projected Population 0 T 30,339 160,445 228,866





2019 Median Age 31.6 34.6 35.4

HO

US

EH

OLD

S

2019 Estimated Households 0 T 9,054 49,493 71,338

2024 Projected Households 0 T 9,400 51,472 74,160





RA

CE

AN

D

ETH

NIC

ITY

2019 Estimated White - 49.9% 57.9% 60.1%

2019 Estimated Black or African American - 3.1% 2.9% 2.9%

2019 Estimated Asian or Pacific Islander - 5.5% 7.1% 7.9%

2019 Estimated American Indian or Native Alaskan - 1.2% 1.0% 0.9%

2019 Estimated Other Races - 40.3% 31.0% 28.1%

2019 Estimated Hispanic - 67.2% 50.8% 46.0%

INC

OM

E 2019 Estimated Average Household Income $0 T $56,366 $80,326 $90,934

2019 Estimated Median Household Income $0 T $48,709 $69,663 $77,087

2019 Estimated Per Capita Income $0 T $17,498 $25,590 $29,196

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ATI

ON

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E 2

5+)

2019 Estimated Elementary (Grade Level 0 to 8) - 22.2% 13.6% 12.1%

2019 Estimated Some High School (Grade Level 9 to 11) - 9.7% 8.5% 7.5%

2019 Estimated High School Graduate - 23.6% 22.9% 21.5%

2019 Estimated Some College - 22.2% 23.3% 22.7%

2019 Estimated Associates Degree Only - 6.5% 8.0% 8.8%

2019 Estimated Bachelors Degree Only - 11.3% 16.0% 18.2%

2019 Estimated Graduate Degree - 4.4% 7.6% 9.2%

BU

SIN

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S 2019 Estimated Total Businesses 0 T 2,711 6,907 8,900

2019 Estimated Total Employees 0 T 26,647 63,047 82,492

2019 Estimated Employee Population per Business - 9.8 9.1 9.3

2019 Estimated Residential Population per Business - 10.9 22.6 25.1

©2019, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 4/2019, TIGER Geography

Lee & Associates hereby advises all prospective purchasers of Net-Leased Invesment property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of an investment property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase.This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Lee & Associates expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of an investment property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any investment property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Lee & Associates and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this investment property.

Exclusively Listed By:

No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice.

RYAN BARRPrincipal

[email protected]

Lic#01338994

RYAN BENNETTPrincipal

[email protected]

Lic#01826517

BARR&BENNETTNETLEASEDINVESTMENTS

A Lee & Associates Team

yoshinoya & banfield pet hospital · 2019-09-03 · banfield pet hospital was founded in...

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