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  • 1

    2307 Lincoln Boulevard - Offering Memorandum

    F O R S A L E 2307 LINCOLN BOULEVARD, SANTA MONICA, CA 90405

    Lee & Associates Los Angeles West, Inc.

    1508 17th Street, Santa Monica, CA 90404 www.leewestla.com | BRE 01222000

    OFFERING MEMORANDUM

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    2307 Lincoln Boulevard - Offering Memorandum

    This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all- inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition, and other factors beyond the control of the Owner and Lee & Associates. Therefore, all projections, assumptions, and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and otherdocuments of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner nor Lee & Associates, nor any of their respective directors, officers, affiliates, or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of real property.The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered, and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold it and treat it in the strictestconfidence and that you will not disclose this Memorandum or any of its contents to any other entity without prior written authorization of the Owner or Lee & Associates. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Lee & Associates. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Lee & Associates.Disclaimer (c)2016 Lee & Associates - Los Angeles West, Inc.The information contained in this document has been obtained from sources believed reliable. While Lee & Associates does not doubt its accuracy, Lee & Associates has not verified it and makes no guarantee, warranty, or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the Property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. You and your advisors should conduct a careful, independent investigation of the Property to determine to your satisfaction the suitability of the Property for your needs.

    CONFIDENTIALITY AGREEMENT

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    2307 Lincoln Boulevard - Offering Memorandum

    EXECUTIVE SUMMARY

    ENTERPRISE 2307 Lincoln Boulevard Santa Monica, CA 90405

    Price:

    CAP Rate:

    10 Year Unlevered Return:

    Current Net Operating Income:

    Escalations:

    Gross Leasable Area:

    Lot Size:

    Year Built:

    Lease Type:

    Rent Commencement:

    Lease Expiration:

    Options:

    Termination Right:

    $5,150,000 ($432.00/SF/Land)

    3.84% - YR 1, 4.42% - 10 YR AVG, 5.02% - YR 10

    $2,277,249 (44.22%)

    $198,000

    3.0% (Including Renewal)

    ± 1,647 SF

    ± 11,911 SF

    Remodeled 2019/2020

    NNN (Zero Landlord Responsibility)

    December, 2018

    10 Years and 3 Months

    2 (60 Month) Options

    After 3rd year with 180 days notice, 3 month termination fee plus unamoritized brokerage commissions.

    (Base Rent for Months 61, 73, and 85 Abated)

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    2307 Lincoln Boulevard - Offering Memorandum

    10 YEAR UNLEVERED CASH FLOW

    Year 1 Year 2 Year 3 Year 4* Year 5* Year 6* Year 7* Year 8* Year 9* Year 10* Year 11*(3 months) Total

    Purchase $5,150,000

    Monthly Rent $16,500 $16,995 $17,505 $18,030 $18,571 $19,128 $19,702 $20,293 $20,902 $21,529 $22,175

    Annual Rent $198,000 $203,940 $210,058 $216,360 $222,851 $229,536 $236,422 $243,515 $250,820 $258,345 $66,524

    Abatement $0 $0 $0 $0 $0 ($19,128) ($19,702) ($20,293)

    Annual Income $198,000 $203,940 $210,058 $216,360 $222,851 $210,408 $216,720 $223,222 $250,820 $258,345 $66,524 $2,277,249

    CAP Rate 3.84% 3.96% 4.08% 4.20% 4.33% 4.09% 4.21% 4.33% 4.87% 5.02% 5.17% 44.22%

    *Tenant may terminate lease after 3rd Year with 180 days notice plus paying a three (3) month termination fee plus unamortized brokerage commissions. Initial Term

    Month 61 Free Month 73 Free Month 85 Free

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    2307 Lincoln Boulevard - Offering Memorandum

    INVESTMENT HIGHLIGHTS

    • Rapidly evolving Lincoln Boulevard with excellent intrisic land value.

    • Limited competition in the trade area, and the Enterprise in over a 1

    mile radius

    • Located on busy Lincoln Boulevard with over 50,000 cars per day

    • Located within one block of Chick-fil-A, recently traded for

    $8,375,000.00 ($5,368.69/SF, 3.58% CAP)

    • Less than one mile from Santa Monica Pier.

    • Located along main LAX artery.

    • Major alternate route to 405 Freeway.

    • Established national credit tenant on 10-year and 3-month NNN

    lease (commenced December 2018) plus Two (2) Five (5) year re-

    newal options

    • Zero management/hassle free long-term NNN lease

    • Attractive market financing available. For details, please contact

    Mike Malik at Broadway Capital, (310) 927-1866, mike@broadway-

    capitalpartners.com or the listing team.

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    2307 Lincoln Boulevard - Offering Memorandum

    TENANT INFORMATION

    Enterprise Rent-A-Car is the largest rental car company in the United States with over 10,000 home city locations and 419 airport locations. Enterprise specializes in car rentals to customers who need a replacement car due to an accident or mechanical repair or who require a car rental for a business or leisure trip. Operations expanded in the ‘90s to include the airport market and now serves airports in the US, Canada, the UK, Spain, Germany and Ireland. Enterprise’s customer service has been recognized by J.D. Power and Associates seventeen times since 1999. J.D. Power annually surveys both business and leisure travelers who rent vehicles at North American airports. Each year, Enterprise excels in costs and fees, pick-up process, rental car, return process and reservation process. Their annual revenue ranks near the top of the global travel industry, ahead of many airlines, hotels and only travel agencies. Enter- prise’s approach to earnings has helped to make then the only investment-grade car rental company in North America. Their substantial financial foundation is a distinct competitive advantage. Annual reve- nues reach upwards of $24 billion with nearly 2 million cars and trucks in their fleet. The company now serves more than 95 percent of the worldwide car rental market with customers logging more than 20 billion miles worldwide every year.

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    2307 Lincoln Boulevard - Offering Memorandum

    SITE OVERVIEW

    Sold July 27, 2018

    $8,375,000.00 Sale Price

    $5,368.50/SF

    3.58% CAP Rate

    SUBJECT PROPERTY

    2307 LINCOLN BOULEVARD

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    2307 Lincoln Boulevard - Offering Memorandum

    EXISTING SITE (Undergoing Full Site Renovation)

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    2307 Lincoln Boulevard - Offering Memorandum

    BUILDING RENDERINGS (Lease has Already Commenced)

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    2307 Lincoln Boulevard - Offering Memorandum

    SITE PLAN

    EXISTIN G

    B U ILD

    IN G

    LIN C O

    LN B

    LVD

    PE AR

    L ST

    RE E

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