bruno's burgers - jesse lee e manchester bl inglewood ca … · section 1 pricing and...

INGLEWOOD, CA

Bruno's BurgersBruno's BurgersBruno's BurgersBruno's Burgers

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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, PCB's or asbestos, the compliance with 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 Marketing Brochure 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.

INGLEWOOD,INGLEWOOD,INGLEWOOD,INGLEWOOD, CA CA CA CA


Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR

MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

Bruno's BurgersBruno's BurgersBruno's BurgersBruno's BurgersINGLEWOOD, CA


PRICING AND FINANCIAL ANALYSIS

Price $740,000

Down Payment 40% $296,000

Price per Square Foot (GLA) $603.10

Gross Leasable Area (GLA) 1,227

Year Built 1969

Lot Size 4,936 SF

VITAL DATA

CAP Rate - Current 6.49%

Net Operating Income - Current $48,000

Net Cash Flow After Debt Service - Current $48,000

Total Return - Current 16.22% / $48,000

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Major Employers

CompanyLocal

Employees

Raytheon 9,105

Electronic Arts Inc 4,040

Sony Pictures Entertainment 3,500

Centinela Frman Rgonal Med Ctr 3,146

Lockheed Martin Corporation 3,000

US Post Office 2,540

Parks & Recreation Dept 2,369

Aerospace Corporation 2,315

Loyola Marymount University 1,739

MATTEL 1,700

Centinela Hospital Medical Ctr 1,500

Spacex 1,500

Demographics

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap.All rights reserved.

1-Mile 3-Miles 5-Miles

2013 Total 39,395 288,720 857,814

2018 Total 38,874 285,943 857,453

2013 Total 13,993 98,996 280,187

2018 Total 14,045 99,867 284,972

Median HH Income $39,080 $47,019 $43,436

Per Capita Income $19,625 $22,991 $21,326

Average (Mean) HH $54,466 $66,598 $64,704

OFFERING SUMMARY

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TENANT SUMMARY

Tenant GLA % ofGLA

LeaseCommence

LeaseExpire

Increases MonthlyRent

Rent/SF

LeaseType

Bruno's Burgers 1,227 100.00% 2006 2026 CPI IncreasesEvery 2 Years

$4,000.00 $3.26 NNN

TOTAL VACANT

TOTAL OCCUPIED 1,227 100.00% $4,000.00

TOTAL 1,227 100.00% $4,000.00

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Bruno's Burgers: 100.00%



Current Per SF

Real Estate Taxes $10,000 $8.15

Insurance $6,276 $5.11

Pest Control $7,844 $6.39

CAM

Repairs & Maintenance $4,956 $4.04

TOTAL CAM $4,956 $4.04

TOTAL EXPENSES $29,076 $23.70


Tenants (% OF GLA)

EXPENSES

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Current Per SFBase Rent

Occupied Space $48,000 $39.12

GROSS POTENTIAL RENT $48,000 $39.12

Expense Reimbursements

NNN Charges $29,076 $23.70

Total Expense Reimbursements $29,076 $23.70

GROSS POTENTIAL INCOME $77,076 $62.82

EFFECTIVE GROSS INCOME $77,076 $62.82

Total Expenses $29,076 $23.70

NET OPERATING INCOME $48,000 $39.12


Gross Leasable Area (GLA) 1,227 SF

INCOME & EXPENSES

450 East Manchester Boulevard

Inglewood, CA 90301

Price $740,000

Down Payment 40% $296,000

Gross Leasable Area (GLA) 1,227

Price/SF $603.10

CAP Rate - Current 6.49%

Lot Size 4,936 SF

Year Built 1969

FIRST TRUST DEED

Loan Amount $444,000

Annualized Operating Data

Income CurrentBase Rent

Occupied Space $48,000

Gross Potential Rent $48,000

Expense Reimbursements $29,076

Gross Potential Income $77,076

Effective Gross Income $77,076

Total Expenses $29,076

Net Operating Income $48,000

Net Cash Flow After Debt Service 16.22% / $48,000

Total Return 16.22% / $48,000

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Location


Financing


ExpensesReal Estate Taxes $10,000

Insurance $6,276

Pest Control $7,844

CAM

Repairs & Maintenance $4,956

TOTAL CAM $4,956

TOTAL EXPENSES $29,076

EXPENSES/SF $23.70


Loan information is time sensitive and subject tochange. Contact your local Marcus & Millichap CapitalCorporation representative.

FINANCIAL OVERVIEW

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PROPERTY DESCRIPTION

Bruno’s Burgers is ideally located on the signalized Southwest corner of East Hillcrest Boulevard and East Manchester Boulevard in the city of Inglewood, California. The subject property is ideally located one block from multiple national retailers including Planet Fitness, Sizzler, IHOP, RadioShack, and Quiznos.

Bruno’s Burgers is well located within a densely populated Los Angeles submarket, with an immediate population upwards of 857,814 people within a five mile radius. In 2013, the median household income was $66,598, compared to the U.S. average which is currently $53,535. The property benefits from excellent visibility and frontage along East Manchester Boulevard.

Bruno’s Burgers currently pays $4,000 plus NNN. They have 12 years remaining on their initial lease term. The property is operated by a single unit franchisee. This offering offers an investor with a stable cash flow with no downside, as the current rent is below market rents in the immediate area.

The net rentable square footage of the property is 1,227 square feet situated on 4,936 square feet of land. Bruno’s Burgers property is being offered for sale at $740,000, a 6.49% CAP Rate on current income.

Investment Highlights

■ NNN Lease

■ 12 Years Remaining on Initial Lease Term withTwo – 5 Year Options

■ Signalized Corner Location

■ Seasoned Operator

■ Excellent Visibility and Frontage

■ High Traffic Counts

■ Adjacent to Multiple National Retailers

■ CPI Increases Every Two Years

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INVESTMENT OVERVIEW

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The Offering

Property Bruno's Burgers

Property Address 450 East Manchester Boulevard

Inglewood, CA 90301

Site Description

Year Built 1969

Gross Leasable Area (GLA) 1,227 SF

Lot Size 4,936 SF

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PROPERTY SUMMARY

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Local Map Regional Map

AREA MAPS

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SITE PLAN

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AERIAL PHOTO

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AERIAL PHOTO


RECENT SALES

1)2)3)4)5)6)

Bruno's Burgers2120 West Pico Boulevard4801 West Century BoulevardDel Taco3451 West Olympic BoulevardRalphsDollar Tree

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RECENT SALES



RECENT SALES MAP

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

Subject 4801WestCenturyBoulevard

DelTaco

3451WestOlympicBoulevard

Ralphs DollarTree

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Subject 2120WestPico

Boulevard

DelTaco

3451WestOlympicBoulevard

Ralphs DollarTree

Average Price per Square Foot

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RECENT SALES


Average Cap Rate


CAP RATE AND PRICE PER SF

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2

Bruno's Burgers

450 East Manchester Boulevard

Inglewood, CA 90301

2120 West Pico Boulevard

Los Angeles, CA 90006

4801 West Century Boulevard

Inglewood, CA 90304

CommentsLocated on the SE Signalized Corner of West Pico Boulevard & Hoover Street just 10.1 miles from the subject property

CommentsMajor Cross Streets:

Located on the NW Signalized Corner of West Century Boulevard & South Inglewood Avenue

Close of Escrow: 3/7/2014

Sale Price: $3,100,000

Percent Down: 100%

CAP Rate: 4.41%

Lot Size: 30,231 SF

Subject Property

Year Built: 1969

Gross Leasable Area (GLA): 1,227 SF

Offering Price: $740,000

Percent Down 40%

CAP Rate: 6.49%

Price/SF (GLA): $603.10

Lot Size: 4,936 SF


Year Built: 1990

Gross Leasable Area (GLA): 690 SF

Sale Price: $899,500

Price/SF (GLA): $1,303.62

Lot Size: 18,060 SF

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RECENT SALES



RECENT SALES

5

4

3 Del Taco

16216 Crenshaw Boulevard

Gardena, CA 90249

3451 West Olympic Boulevard

Los Angeles, CA 90019

Ralphs

950 North La Brea Avenue

Inglewood, CA 90302


Located just South of West 10th Street, in between South Wilton Place & South Grammercy Place


Located on the Signalized SW Corner of Centinela Avenue & North Market Street


Located on the NE Signalized Corner of Crenshaw Boulevard & West Redondo Beach Boulevard


Year Built: 1979




Lot Size: 101,059 SF


Year Built: 1979



CAP Rate: 4.76%


Lot Size: 8,063 SF


Year Built: 2003



Percent Down: 100%

CAP Rate: 4.36%


Lot Size: 15,002 SF

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RECENT SALES



RECENT SALES

6 Dollar Tree

811 North La Brea Avenue

Inglewood, CA 90302


Located on the West Side of North La Brea Avenue, in between East Plymouth Street & West Hyde Park Boulevard


Year Built: 1956



CAP Rate: 6.25%


Lot Size: 36,691

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RECENT SALES



RECENT SALES


DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

2000 Population 39,956 288,970 817,992

2010 Population 38,822 284,549 845,276

2013 Population 39,395 288,720 857,814

2018 Population 38,874 285,943 857,453

2000 Households 13,834 97,535 267,703

2010 Households 13,706 97,004 274,487

2013 Households 13,993 98,996 280,187

2018 Households 14,045 99,867 284,972

2013 Average Household Size 2.77 2.88 3.01

2013 Daytime Population 17,611 110,182 294,429

2000 Median Housing Value $174,446 $187,507 $198,511

2000 Owner Occupied Housing Units 23.21% 41.21% 38.69%

2000 Renter Occupied Housing Units 72.43% 53.78% 55.65%

2000 Vacant 4.11% 5.02% 5.79%



2013 Vacant 3.84% 3.53% 4.12%



2018 Vacant 3.80% 3.27% 3.89%

$ 0 - $14,999 17.9% 15.5% 17.5%

$ 15,000 - $24,999 15.5% 12.2% 12.9%

$ 25,000 - $34,999 12.6% 10.8% 11.4%

$ 35,000 - $49,999 15.8% 13.6% 13.7%

$ 50,000 - $74,999 19.6% 18.5% 17.4%

$ 75,000 - $99,999 8.5% 11.3% 10.4%

$100,000 - $124,999 4.5% 7.6% 6.6%

$125,000 - $149,999 1.7% 3.7% 3.6%

$150,000 - $199,999 1.7% 3.5% 3.4%

$200,000 - $249,999 0.7% 1.3% 1.3%

$250,000 + 1.6% 1.9% 2.0%

2013 Median Household Income $39,080 $47,019 $43,436

2013 Per Capita Income $19,625 $22,991 $21,326

2013 Average Household Income $54,466 $66,598 $64,704

Demographic data © 2012 by Experian.

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DEMOGRAPHIC REPORT

Geography: 5 miles

Population

In 2013, the population in your selected geography was 857,814. The population has changed by 4.86% since 2000. It is estimatedthat the population in your area will be 857,453 five years from now, which represents a change of 0.04% from the current year. Thecurrent population is 48.0% male and 51.9% female. The median age of the population in your area is 33.1, compare this to the U.S.average which is 37. The population density in your area is 10,769.10 people per square mile.

Households

There are currently 280,187 households in your selected geography. The number of households has changed by 4.66% since 2000.It is estimated that the number of households in your area will be 284,972 five years from now, which represents a change of 1.70%from the current year. The average household size in your area is 3.00 persons.

Income

In 2013, the median household income for your selected geography is $43,436, compare this to the U.S. average which is currently$53,535. The median household income for your area has changed by 13.85% since 2000. It is estimated that the median householdincome in your area will be $49,797 five years from now, which represents a change of 14.64% from the current year.

The current year per capita income in your area is $21,326, compare this to the U.S. average, which is $28,888. The current yearaverage household income in your area is $64,704, compare this to the U.S. average which is $75,373.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 30.48% White, 32.78% African American, 0.70% Native Americanand 4.46% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.20% White, 12.65% African American, 0.96%Native American and 5.01% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 51.03% of the current yearpopulation in your selected area. Compare this to the U.S. average of 16.55%.

Housing

The median housing value in your area was $198,511 in 2000, compare this to the U.S. average of $110,781 for the same year. In2000, there were 109,925 owner occupied housing units in your area and there were 158,116 renter occupied housing units in yourarea. The median rent at the time was $620.

Employment

In 2013, there are 294,429 employees in your selected area, this is also known as the daytime population. The 2000 Census revealedthat 59.7% of employees are employed in white-collar occupations in this geography, and 40.2% are employed in blue-collaroccupations. In 2013, unemployment in this area is 5.71%. In 2000, the median time traveled to work was 24.0 minutes.


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SUMMARY REPORT

Number of people living in a given area per square mile.


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POPULATION DENSITY

The number of people employed in a given area per square mile.


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EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a single housing unit.


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AVERAGE HOUSEHOLD INCOME

INGLEWOOD,INGLEWOOD,INGLEWOOD,INGLEWOOD, CA CA CA CA

OFFERING MEMORANDUM


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bruno's burgers - jesse lee e manchester bl inglewood ca … · section 1 pricing and...

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