investment offering - single tenant · tenant including kohls, aldi, petsmart and marshalls. in...

CIRE PartnersCOMMERCIAL INVESTMENT REAL ESTATE

OVER $119MM IN DEPOSITSBELOW MARKET RENT

Investment Offering - Single Tenant 15092 Summit Avenue | Fontana, CA 92336

For more information contact: Joshua Volen, President | (858) 367-5901 | CA BRE #01437000

Confidentiality & Disclaimer The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended only to be reviewed by the party receiving it from CIRE Brokerage Services Inc. dba CIRE Partners (hereafter “CIRE Partners”) and should not be made available to any other person or entity without the written consent of CIRE Partners. 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. CIRE Partners 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 regulators, 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, CIRE Partners has not verified, and will not verify, any of the information contained herein, nor has CIRE Partners conducted any investigation regarding theses 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. This is not an appraisal. Please consult your CIRE Partners agent for more details. The information contained herein was obtained from sources believed reliable, however, CIRE Partners makes no guaranties, warranties or representations as to the completeness thereof. This document has been prepared by CIRE Partners for advertising and general information only. CIRE Partners excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.

Joshua Volen, President(858) 367-5901 direct [email protected] CA BRE #01437000

For more information contact:

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section Iexecutive summary

section IIproperty description

section IIIfinancial analysis

section IVmarket information

section Vtenant profiles

Investment Offering - Single Tenant 15092 Summit Avenue | Fontana, CA 92336

CIRE Partners is pleased to present a single-tenant absolute net leased investment offering located in Fontana, CA. The subject property is 100% occupied by Bank of America with approximately four (4) years of remaining term and four renewal options (first two (2) - 5 year fixed at 12.5% increases then to FMV).

Bank of America, N.A. is a subsidiary of Bank of America Corporation, a bank holding company and financial holding company. They operate in all 50 states, the District of Columbia, theUS Virgin Islands, Puerto Rico and more than 35 additional countries. Bank of America’s retail banking footprint is positioned to serve approximately 80% of the US population, currently serving roughly 48 million consumers and small businesses.

The property is located within Summit Heights Gateway, a class-A retail shopping center in Fontana, California which serves as the primary retail corridor in the North Fontana trade area. Summit Heights Gateway is positioned just north of Interstate 210 at a key intercept location between the High Desert and Interstate 10. The property boasts unobstructed freeway visibility as well as quick and immediate access from Beech Avenue. The shopping center is comprised of anchor tenant including Kohls, Aldi, Petsmart and Marshalls. In addition to the anchors, the center includes several retail out-parcels including restaurants, fitness, medical, salons, and more.

Bank of America benefits from multiple points of ingress and egress with access from both frontage roadways. The property is also located on the "going home" side of commuter traffic on Beech avenue with a combined traffic count along Interstate 15 and Beech of approximately 150,000 vehicles per day.

property snapshot

15092 Summit Avenue | Fontana, CABuilt in 2003±4,700 SF Located on 0.69 AcresSingle-Tenant Net Leased - RetailAbsolute NNN Fee Simple Ground Lease

pricing summaryPurchase Price $2,563,422NOI $115,354CAP rate 4.50%Lease Term ±4 Years Remaining

executive summarypage 3

investment overviewAddress 15092 Summit Avenue | Fontana, CA 92336APN 1108-281-08-0000Square Footage ±4,700 SFYear Built 2003Purchase Price $2,563,422CAP Rate 4.50%NOI $115,354Deposits (2019) $119,258,000Reciprocal Parking ±5.06 / 1,000Zoning CG - General CommercialAmenities Two (2) Drive-Up ATMs; Two (2) Walk-Up ATMsLease Type Absolute NNN Fee Simple Ground LeaseRemaining Lease Term Four (4) Years RemainingTraffic Counts Interstate 15 & Beech Avenue: ±150,000 ADT

investment highlights• Four (4) years remaining on existing lease term with significantly low rental rates and

four renewal options (first two (2) - 5 year fixed at 12.5% increases then to FMV)• Deposits continue to increase year over year; 2019 branch deposits of

$119,258,000 up 17.4% since 2018 • Below Market Rents• Property features two (2) drive-up ATM's and two (2) walk-up ATM's• Bank of America, N.A. is a subsidiary of Bank of America Corporation, a bank holding

company and financial holding company. • No Landlord Responsibilities: Tenant responsible for property taxes, insurance,

repairs and maintenance, utilities, HVAC, roof and structure, parking lot, and common area maintenance

• Combined traffic counts along Interstate 15 and Beech Avenue are estimated to be nearly 150,000 ADT, offering significant exposure for Wendy's

• Property is located at the entrance of the shopping center featuring considerable retail frontage along Interstate 15, Beech Avenue, and Summit Avenue. Bank of America benefits from significant frontage along Beech Avenue.

Year(s) Dates Monthly Rent Rate NOI CAP Rate

11-15 Dec 1, 2018 - Nov 30, 2023 $9,613 $2.05 / SF $115,354 4.50%Option 1 Dec 1, 2023 - Nov 30, 2028 $10,812 $2.30 / SF $129,746 5.06%Option 2 Dec 1, 2028 - Nov 30, 2032 $12,165 $2.59 / SF $145,977 5.69%

Representative Photo

property descriptionpage 4

15092 Summit Avenue | Fontana, CA 92336

lease abstractTenant Bank of AmericaLease Commencement December 01, 2003Lease Expiration November 30, 2023Lease Type Absolute NNN Fee Simple Ground LeaseCurrent Annual NOI $115,354Renewal Option Four (4) - 5 Year OptionsLandlord Responsibilities NoneGuarantor Corporate

location map 2019 demographics3 Miles 5 Miles 10 Miles

Total Population 79,913 235,509 751,624

Projected Population (2022) 82,362 242,734 776,104

Average Household Income $116,285 $94,078 $78,281

Projected Household Income (2022) $143,831 $116,426 $96,493





property aerial

SummitHigh School

California State UniversitySan Bernardino

A.B. MillerHigh School

Wayne RubleMiddle School

Sierra LakesGolf Club

Foothill Fre

eway



property aerial

Lease Term: December 1, 2003 - November 30, 2023

Renewal Options: Two (2) - 5 Year Fixed Options

Utilities: Tenant agrees to pay directly to the appropriate utility company all charges for utility services supplied to Tenant for which there is a separate meter and/or submeter to the Premises. As part of Tenant's Work, Tenant, at Tenant's sole cost and expense, shall pay for and Install (or extend, as the case may be), If required, the fire protection line to the Building, with a post-indicator valve and fire department connection, water meters, wet and dry utility work. Tenant shall pay all Impact and connection fees associated with the Building and EDU fees.

financial analysispage 8


financial information

market informationpage 9


market overviewFontana, CAThe City of Fontana now has over 200,000 residents and continues on a trajectory of rapid growth. One of the major new areas of development in the city lies just to the north of Taco Bell and is dubbed Duncan Canyon. Stemming from the newly constructed Duncan Canyon overpass and interchange on I-15, the new master-planned development area will include new housing in addition to mid-rise office, hospitality, and retail projects. In total, there are more than 9,000 new housing units planned in the northern part of the city.

Taco Bell is located along I-15 in the north part of the City of Fontana. The center, in conjunction with the adjacent Falcon Ridge Town Center, draws from an expanded trade area that includes residential areas to the north and neighboring Rancho Cucamonga to the west. In addition to the current nearby neighborhoods, the area surrounding the Beach Avenue interchange along I-15 is anticipated to see the most new residential development over the coming years. Fast-growing communities are the norm for cities within the greater San Bernardino area, as it is one of the fastest-growing metro areas in the nation.

Taco Bell is positioned just north of Interstate 210 at a key intercept location between the High Desert and Interstate 10. Taco Bell benefits from unobstructed freeway visibility, high image, and immediate access from Interstate 15 at the Beech Avenue interchange. The property is also on the “going home” side of commuter traffic on Beech Avenue.

FontanaCALIFORNIA

tenant profilespage 10


neighboring tenants

Kohl’s Corporation (Kohl’s), incorporated on March 23, 1993, is an operator of department stores. As of January 28, 2017, the Company operated 1,154 Kohl’s department stores, a Website (www.Kohls.com), 12 FILA outlets, and three Off-Aisle clearance centers. The Company’s stores and Website sell moderately-priced private label and national brand apparel, footwear, accessories, beauty and home products. The Company’s Website includes merchandise that is available in its stores, as well as merchandise that is available only online. The Company’s merchandise mix includes both national and private brands.

Marshalls is a chain of American department stores including over 750 conventional stores as well as larger Marshalls Mega Stores. Along with TJ Maxx, it is owned by the TJX Companies, and has over $25 billion in annual revenues and 160,000 employees. TJX store sales continue to rise, in Q2 2018 net income rose to $739.6 Million. Read more here: http://bit.ly/2MLWsSg

14960 Summit AvenueFontana, CA 92336




Founded by the Albrecht family, the first ALDI store opened in 1961 in Germany, making ALDI the first discounter in the world. Headquartered in Batavia, Illinois, ALDI now has more than 1,600 stores across 35 states, employs over 24,000 people and has been steadily growing since opening its first US store in Iowa in 1976. Over the past decade, ALDI has nearly doubled in size and by 2018, ALDI will bring its total number of US stores to nearly 2,000 with new locations throughout Southern California. Aldi also owns Trader Joe’s, an American chain of grocery stores with over 474 locations.



Founded in 1986, PetSmart, Inc. is an American retail chain operating in the United States, Canada, and Puerto Rico engaged in the sale of specialty pet supplies and services such as grooming and dog training, cat and dog boarding facilities, and daycare. PetSmart also offers a varied selection of animals for sale and adoption.

Planet Fitness is a national franchise of fitness centers that is based in Newington, New Hampshire. The company has grown to over 900 locations nationally since it was established in 1992.

Chevron is one of the world’s leading integrated energy companies that explores for, produces, and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides renewable energy and energy efficiency solutions; and develops the energy resources of the future, including research into advanced biofuels. The company is publicly traded on the NYSE under ticker symbol CVX and has a current market capitalization of $223.78 billion.

Dressbarn is a retailer of womens clothing focused on providing 40ish women with great fashion at a smart price. Dressbarn is a subsidiary of the Ascena Retail Group Inc., who operates 8 different brands and had revenue in excess of $6.9B in fiscal year 2016.


Round Table Pizza was founded in 1959 by William R. Larson Sr. in Menlo Park, California. As of 2016, there were more than 450 franchised and company-owned locations, located in Alaska, Arizona, California, Hawaii, Nevada, Oregon, and Washington. Round Table Pizza also has branches in Dubai, Bahrain, Mongolia, Saudi Arabia, Oman, Kuwait and Qatar.




neighboring tenants


Cold Stone Creamery is an American-based ice cream parlor chain. Headquartered in Scottsdale, Arizona, the company is owned and operated by Kahala Brands. The company’s main product is premium ice cream made on location and customized for patrons at time of order. Cold Stone has also expanded its menu with other ice cream related products, including: ice cream cakes, pies, cookie sandwiches, smoothies, shakes and iced or blended coffee drinks.




Subway was founded in 1965 and operates over 44,600 location in 111 countries offering their fresh sandwiches and fresh-baked bread. The company is privately owned by Doctor’s Associates, with sales of $1.11 billion in 2015, making it the largest single-brand restaurant chain and the second largest restaurant operator globally.

T-Mobile (NYSE: TMUS) provides mobile communcations services in the United States, Puerto Rico, and the Virgin Islands. The company provides services to approximately 46.7 million customers. Total revenue in 2016 was $37.2B and this marked the third year in a row that the company led the industry in total revenue growth percentage. It is a subsidiary of Deutsche Telekom Holding B.V., one of the largest telecommunications companies in the world with nearly 38,000 employees and 130 million customers worldwide.

Carter’s is the leading brand in the baby category in the U.S with approximately 25% of the market share, five times the market share of the next largest brand. Carter’s is a subsubiary of Carter’s Inc, which also owns the OshKosh brand. Carter’s, Inc. is the largest branded marketer in the United States and Canada of apparel and related products exclusively for babies and young children.

Taco Bell is the largest Mexican fast food brand, with over 5200 restaurants in the US and system revenue exceeding $7.4 billion per year. The brand continues its strength in the face of stiff competition and continues to grow. New menu items are radically expanding breakfast traffic. The parent company, Yum! Brands, which also controls Kentucky Fried Chicken and Pizza Hut, is a $32 billion market cap company. This franchisee has been in place for over 25 years.


14910 Summit AvenueFontana, CA 92336Salon professionals choose Sola for many reasons: to create a one-of-a-kind salon culture, set their own schedule, experience more privacy with guests and make more money, for starters. But mainly, it's about freedom and control. They provide high-end, move-in-ready studios combined with the support and tools you need to experience the freedom and benefits of salon ownership. From beautiful studios to exclusive deals, education and technology, Sola empowers stylists to live their best life, both personally and professionally. Their community has more than 10,000 independent salon owners.

The Wendy’s Company, founded in 1969 by Dave Thomas, is the third largest quickserve hamburger company in the world. The company employs over 31,200 workers at more than 6,500 franchise and company restaurants in the U.S. and 28 other countries. Wendy’s reported $1.87 billion in revenues in 2016.


Juice It Up! has introduced handcrafted smoothies, raw juices and super fruit bowls to communities everywhere. They pride themselves in creating only the best, real, freshly-made products to their discerning customers in order to enhance their overall wellness. At Juice It Up! they are truly passionate about healthier options. Whatever your passion, their experience and expertise in fresh ingredients will provide you with the perfect option to match your lifestyle.


At Bank of America, they are guided by a common purpose to help make financial lives better by connecting clients and communities to the resource they need to be successful. They deliver this through a focus on responsible growth and environmental, social and governance (ESG) leadership.

They are driving growth – helping to create jobs, develop communities, foster economic mobility and address society’s biggest challenges – while managing risk and providing a return to their clients and our shareholders. Because we recognize that we can only be successful when the individuals, companies, communities and employees they serve are able to reach their vision of success.

Bank of America, N.A. is a subsidiary of Bank of America Corporation, a bank holding company and financial holding company. They operate in all 50 states, the District of Columbia, theUS Virgin Islands, Puerto Rico and more than 35 additional countries. Bank of America’s retail banking footprint is positioned to serve approximately 80% of the US population, currently serving roughly 48 million consumers and small businesses.

Interest income for the 12 months ended 12/31/16 was $51.06 billion, up 3.13% from the same period the year before. A lack of investment-grade product and limited new development of bank branches is causing significant value appreciation in the industry as well as record levels of transactions. Recent sales volumes have been robust, and the trend is expected to continue into 2018 with a focus on high-deposit branches.



tenant profile

Year Founded 1998Headquarters Charlotte, NCWebsite www.bankofamerica.comTotal Locations ±5,100Credit Rating (S&P) A+ / StableTotal Revenue $51.06 BillionTotal Assets $2.19 TrillionNet Income $1.92 Trillion

CIRE PartnersCOMMERCIAL INVESTMENT REAL ESTATE

CIRE Partners | 530 B Street, Suite 2050 | San Diego, CA 92101 | www.CIREpartners.com

investment offering - single tenant · tenant including kohls, aldi, petsmart and marshalls. in...

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