corporate 7-eleven offering...

CORPORATE 7-ELEVEN OFFERING MEMORANDUM 7 4 0 0 S T E W A R T A N D G R AY R O A D | D O W N E Y , C A L I F O R N I A

Actual Property Image

INVESTMENT SUMMARY

•  Investment Overview

•  Investment Summary

AREA OVERVIEW

•  Location & Aerial Map

•  Retail Map •  City Overview

TENANT

•  7-Eleven

BROKER CONTACT

7400 STEWART AND GRAY ROAD DOWNEY, CALIFORNIA

© 2018 The Sher Group. The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. The Sher Group does not doubt its accuracy, however The Sher Group makes no guarantee, representation, or warranty about the accuracy contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine its accuracy and completeness. Any and all projections, market assumptions, and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance these projections, market assumptions, and cash flow analysis are subject to change with property and market conditions. The Sher Group encourages all potential interested buyers to seek advice from your tax, financial, and legal advisors before making any real estate purchase and transaction.

BRE#02022464

2841 Buzz Court | Los Angeles, CA 90039 213.268.1515

CORPORATE 7-ELEVEN OFFERING MEMORANDUM

•  100% NNN leased 7-Eleven

•  Brand new 10-year corporate

lease with options

•  Tenant has been operating in

this location since 1973

•  S&P Rated AA –

Corporate Credit

•  Single tenant asset with minimal

landlord obligations


INVESTMENT OVERVIEW

•  Located in the City of Downey,

CA (Los Angeles County)

•  Highest density in Southern

California: Over 800,000

residents in 6 mile radius

•  10 miles from Downtown Los

Angeles/4 miles from USC

LOCATION

HIGHLIGHTS

Address: Price: Annual Rent: Cap Rate: Lease Type: Roof & Structure: Tenant: Format: Lease Term: Commencement: Rental Increases: Options: Existing Financing: Building Size: Lot Size: Parking Spaces:

4700 Stewart and Gray Road Downey, CA

$3,250,000 $130,000

4.00% NNN

Landlord responsibility

7-Eleven Corporation Single tenant retail

10 years Q2 2018

10% increases every (5) five years (including

option period) (3) three, 5-year options

None 2,400 sf

14,086 sf 15 dedicated parking stalls


INVESTMENT SUMMARY

OFFERING

INVESTMENT SUMMARY

Y E A R S M O N T H L Y Y E A R L Y

N e w T e r m : 1 – 5 $ 1 0 , 8 3 3 . 3 3 $ 1 2 9 , 9 9 9 . 9 6

N e w T e r m : 6 – 1 0 $ 1 1 , 9 1 6 . 6 7 $ 1 4 3 , 0 0 0 . 0 4

E X T E N S I O N O P T I O N S :

E x t e n d e d T e r m : O p t i o n 1

$ 1 3 , 1 0 8 . 3 3 $ 1 5 7 , 2 9 9 . 9 6


$ 1 4 , 4 1 9 . 1 7 $ 1 7 3 , 0 3 0 . 0 4


$ 1 5 , 8 6 1 . 0 8 $ 1 9 0 , 3 3 2 . 9 6


LOCATION MAP

Long Beach

Santa Monica DTLA


AERIAL MAP

RETAIL MAP

Downey is a city located in southeast Los Angeles County, California, United States, 13 mi (21 km) southeast of downtown Los Angeles. It is considered part of the Gateway Cities. The city is the birthplace of the Apollo space program, and is the hometown of Richard and Karen Carpenter. It is also the home of the oldest still operational McDonald's restaurant in the world. As of the 2010 census, the city had a total population of 111,772. Los Angeles, officially the City of Los Angeles and often known by its initials L.A., is the cultural, financial, and commercial center of Southern California. With a census-estimated 2015 population of 3,971,883, it is the second-most populous city in the United States (after New York City) and the most populous city in California. Located in a large coastal basin surrounded on three sides by mountains reaching up to and over 10,000 feet, Los Angeles covers an area of about 469 square miles. The city is the focal point of the larger Los Angeles metropolitan area and the Greater Los Angeles Area region, which contain 13 million and over 18 million people, respectively. Los Angeles is also the seat of Los Angeles County, the most populated county in the United States. Nicknamed the "City of Angels," Los Angeles is known for its Mediterranean climate, ethnic diversity, and sprawling metropolis. The city is also famous as the home of Hollywood, a major center of the American entertainment industry, and one of the leaders in the world in the creation of motion pictures, recorded music, and television productions. Los Angeles also has a diverse economy in culture, media, fashion, science, sports, technology, education, medicine, and research. A global city, it has been ranked 6th in the Global Cities Index and 9th in the Global Economic Power Index. The city is home to renowned institutions covering a broad range of professional and cultural fields, and is one of the most substantial economic engines within the United States.

CITY OVERVIEW

DOWNEY

CITY OF LOS ANGELES

7-Eleven, Inc. is the premier name and largest chain in the convenience-retailing industry. Based in Irving, Texas, 7-Eleven® operates, franchises, or licenses more than 61,000 stores in 17 countries, including 10,900 in North America.

Known for its iconic brands such as Slurpee®, Big Bite®, and Big Gulp®, 7-Eleven has expanded into high-quality salads, side dishes, cut fruit and protein boxes, as well as pizza, chicken wings, cheeseburgers, and hot chicken sandwiches. 7-Eleven offers customers industry-leading private brand products under the 7-Select® brand including healthy options, decadent treats, and everyday favorites, at an outstanding value. Customers also count on 7-Eleven for payment services, self-service lockers, and other convenient services.

Founded in 1927 in Dallas, Texas, 7-Eleven pioneered the convenience store concept during its first years of operation as an ice company wen its retail outlets began selling milk, bread, and eggs as a convenience to guests. The name 7-Eleven originated in 1946 when the stores were open from 7 a.m. to 11 p.m. Today, offering busy shoppers 24-hour convenience, seven days a week is the cornerstone of 7-Eleven’s business.

7-Eleven focuses on meeting the needs of convenience-oriented guests by providing a broad selection of fresh, high quality products and services at everyday fair prices, speedy transactions, and a clean, friendly shopping environment. Each store’s selection of about 2,500 different products and services is tailored to meet the needs and preferences of local guests. Stores typically vary in size from 2,400 to 3,000 square feet and are most often located on corners for great visibility and easy access.

TENANT PROFILE

7-ELEVEN

CONFIDENTIALITY AGREEMENT

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 The Sher Group and should not be made available to any other person or entity without the written consent of The Sher Group. This Offering Memorandum 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, 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 Offering Memorandum has been obtained from sources we believe to be reliable; however, The Sher Group has not verified, and will not verify, any of the information contained herein, nor has The Sher Group 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. By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release The Sher Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.

Marketed by

CHRIS HUDDLESTON CalBRE#01939516

213.268.1515 [email protected]

BRE#02022464

7400 STEWART AND GRAY ROAD DOWNEY, CALIFORNIA

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