offering memorandum atlantic ave south gate ca-… · year built: 2015 baskin-robbins nnn 1 8530...

TWEEDY ATLANTIC PLAZASouth Gate, CA

Offering Memorandum

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016

Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & 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.

TWEEDY ATLANTIC PLAZA

South Gate, CA

ACT ID Y0130014

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Tenant Summary

Operating Statement

Pricing Detail

MARKET COMPARABLES 03Comparables

MARKET DEMOGRAPHICS 04

Demographic Analysis



4

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Kaiser Permanente 5,710

Commerce Casino 2,600

Charles Drew Univ Mdcine Scnce 2,377

Downey Regional Medical Center 2,300

Los Angeles Unified School Dst 2,040

US Post Office 1,939

Health Services Dept of 1,735

St Francis Medical Center of 1,570

Lacoe 1,500

County of Los Angeles 1,481

McDonalds 1,405

Bicycle Club Casino 1,300

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2015 Estimate Pop 27,863 400,593 924,015

2010 Census Pop 27,317 391,745 900,479

2015 Estimate HH 6,867 97,498 231,280

2010 Census HH 6,697 94,880 224,005

Median HH Income $51,242 $43,805 $42,394

Per Capita Income $15,500 $14,031 $14,375

Average HH Income $62,877 $56,828 $56,827

VITAL DATA

YEAR 1 YEAR 2

Price $8,557,000 CAP Rate 5.75% 5.97%

Loan Type All CashNet Operating Income

$492,094 $510,472

Gross Leasable Area (GLA) 20,568 SFNet Cash Flow After Debt Service

5.75% / $492,094 5.97% / $510,472

Price/SF $416.03 Total Return 5.75% / $492,094 5.97% / $510,472

Current Occupancy 100.0%

Year Built / Renovated 2015

Lot Size 1 acre(s)

5

MAJOR TENANTS

TENANT GLA LEASE EXPIRATION LEASE TYPE

Bright Now! Dental 5,318 5/31/2025 NNN

Winchell's Donuts 1,650 2/28/2026 NNN

Cricket Wireless 1,160 8/20/2018 NNN

Baskin-Robbins 1,160 9/14/2020 NNN

JC

Highlight

JC

Highlight

JC

Highlight

JC

Highlight

JC

Highlight

JC

Highlight


#

OFFERING SUMMARY

Remodeled in 2015

Signalized Corner

Monument Signage

High Traffic Corner

Between Two Major Future Developments

Strong Corporate Tenants

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present the recently remodeled Tweedy Atlantic Plaza located on the signalized corner of Tweedy Boulevard and Atlantic Avenue in

South Gate. The renovations of the center were completed in 2015. The center is fully occupied including major tenants such as Baskin-Robbins, Winchells Donut House,

Bright Now! Dental, and Cricket Wireless. All leases are triple net. The subject property is well located on a high foot traffic corner less than a quarter mile between Legacy

High School and Tweedy Elementary School. In addition, the property is surrounded by a dense resident population of a little under one million residents within a five mile

radius. Future development around the Tweedy Atlantic Plaza will only make this asset more desirable for years to come. To the East of the center, Legacy High School

will be expanding to accommodate the influx of students being admitted to the schools special engineering, technology, and arts programs. The 40 million dollar project is

expected to break ground in 2017 and finish construction in 2019. West of the center, the city of South Gate has approved the development of a 99 unit apartment and

retail center.

South Gate, incorporated in 1923, is a growing community along side the 710 and 105 freeways. South Gate is part of the Gateway Cities region in Los Angeles County,

serving commerce flowing from the Port of Los Angeles to Downtown Los Angeles.

INVESTMENT OVERVIEW

6


PROPERTY SUMMARY

OFFERING SUMMARY

THE OFFERING

Property Tweedy Atlantic Plaza

Price $8,557,000

Property Address 9918 Atlantic Ave,South Gate,CA

SITE DESCRIPTION

Year Built/Renovated 2015

Gross Leasable Area 20568

Ownership Fee Simple

Lot Size 1.00 acre(s)

7

REGIONAL MAP


8

LOCAL MAP


9

AERIAL PHOTO


10


11


12

12

TENANT PROFILES


13

Bright Now! Dental

Bright Now! Dental, offers dental services such as general care, cosmetic

dental care, orthodontic, and dental emergencies. Bright Now! Dental prides

itself on it’s ability to reach a wide range of clientele including the those with

disabilities: deaf, hard-of-hearing, and communication disabled patients.

Smile Brands, Inc., the parent company of Bright Now! Dental, manages

1,300 dentists, in nearly 350 offices, in 16 states nationwide under brand

names such as Castle Dental, Monarch Dental, and Bright Now! Dental.

General Information

Tenant Name Bright Now! Dental

Website brightnow.com

Parent Company Smile Brands, Inc.

Headquartered Irvine, CA

Rentable Square Feet 5,318

Lease Commencement 6/1/2015

Lease Expiration 5/31/2025

12

TENANT PROFILES


14

Winchell's Donuts

Winchell’s Donuts is the West Coast’s largest donut chain offering over 70

varieties of baked goods including: donuts, cinnamon rolls, muffins, bagels

croissants, and sandwiches. Currently Winchell’s has over 170 retail locations

in 6 states, in addition to locations in Guam, and Saipan.

General Information

Tenant Name Winchell’s Donuts

Website winchells.com

Parent Company Yum-Yum Donuts

Headquartered City of Industry, CA




12

TENANT PROFILES


15

Cricket Wireless

Cricket Wireless is a prepaid wireless phone company providing voice, text,

and data service to consumers nationwide. Cricket wireless and it’s 5 million

subscribers were acquired by AT&T, Inc. (Nasdaq: T) in 2014. As of 2017

Cricket wireless has expanded to more than 1,300 retail locations in all 50

states including the District of Columbia.

General Information

Tenant Name Cricket Wireless

Website cricketwireless.com

Parent Company AT&T

Headquartered Atlanta, GA

Ticker Symbol (Nasdaq) T




12

TENANT PROFILES


16

Baskin-Robbins

Baskin-Robbins is the world’s largest ice cream chain specializing in premium

ice cream, frozen desserts, and beverages. Since its founding in 1945 the

company has created more than 1,000 ice cream flavors. Currently Baskin-

Robbins can be found in almost 50 countries with more than 7,600 retail

locations. Dunkin’ Brands Group, Inc. (Nasdaq: DNKN), is one of the world’s

leading quick service restaurant franchisors with thousands of locations in

nearly 60 countries under its brands, Dunkin’ Donuts and Baskin-Robbins.

General Information

Tenant Name Baskin-Robbins

Website baskinrobbins.com

Parent Company Dunkin’ Brands Group, Inc.

Headquartered Canton. MA

Ticker Symbol (Nasdaq) DNKN





17

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


18

TENANT SUMMARY

FINANCIAL ANALYSIS


OPERATING STATEMENT

19

FINANCIAL ANALYSIS


PRICING DETAIL

20


21

MARKET

COMPARABLES

8


SALES COMPARABLES MAP

22


(SUBJECT)

8530 Firestone Blvd

Whittier Plaza

Belstate Plaza

11123 Long Beach Blvd

Las Palmas Shopping

Center

6620 Somerset Boulevard

SALES COMPARABLES

1

2

3

4

5

6

23

Avg. 5.43%

0

1

1

2

3

4

4

5

6

6

7

Tweedy

Atlantic

Plaza

8530

Firestone

Blvd

Whittier

Plaza

Belstate

Plaza

11123 Long

Beach Blvd

Las Palmas

Shopping

Center

6620

Somerset

Boulevard

Average Cap Rate

PROPERTY NAMETWEEDY ATLANTIC PLAZA

COMPARABLES

Avg. $422

$0

$60

$120

$180

$240

$300

$360

$420

$480

$540

$600

Tweedy

Atlantic

Plaza

8530

Firestone

Blvd

Whittier

Plaza

Belstate

Plaza

11123 Long

Beach Blvd

Las Palmas

Shopping

Center

6620

Somerset

Boulevard

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


24

SALES COMPARABLES

Annual Per SF

Income $635,442 $30.89

Expenses $143,348 $6.97

NOI $492,094 $23.93

Occupancy 100.0%


9918 ATLANTIC AVE, SOUTH GATE, CA, 90280

Tenants Lease Type

Asking Price: $8,557,000 Bright Now! Dental NNN

Price/SF: $416.03 Winchell's Donuts NNN

CAP Rate: 5.75% Cricket Wireless NNN

Year Built: 2015 Baskin-Robbins NNN

1

8530 FIRESTONE BLVD

8530 FIRESTONE BLVD, DOWNEY, CA, 90241

Annual Per SF

Occupancy 100%

Tenants Lease Type

Close Of

Escrow:6/1/2016 WSS NNN

Sales Price: $10,000,000 PIH Health NNN

Price/SF: $499.00

CAP Rate: 5.96%

Year Built: 2005

2

WHITTIER PLAZA

6201 WHITTIER BLVD, LOS ANGELES, CA, 90022

Annual Per SF

Occupancy 68%

NOTES

Makoto Chinese food signed a new 10 year lease with no options.

Subway, Allstate, and Alignment Health Care have a 5 year lease

with (1) 5 year option.

Tenants Lease Type

Close Of

Escrow:2/2/2016 Fast Auto Loan NNN

Sales Price: $6,250,000 Subway NNN

Price/SF: $373.00 Alignment Healthcare NNN

CAP Rate: 4.00% Allstate Insurance NNN

Year Built: 2014 Transformation Water NNN

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


25

SALES COMPARABLES

3

BELSTATE PLAZA

5931 STATE ST, HUNTINGTON PARK, CA, 90255

Annual Per SF

Occupancy 100%

Tenants Lease Type

Close Of

Escrow:2/18/2016 Circle K NNN

Sales Price: $5,950,000 Panda Garden NNN

Price/SF: $364.00 Waba Grill NNN

CAP Rate: 5.50% Taste of India NNN

Year Built: 2007 Reyna's Salon NNN

Frozen Yogurt NNN

Cosmoprof

4

11123 LONG BEACH BLVD

11123 LONG BEACH BLVD, LYNWOOD, CA, 90262

Annual Per SF

Occupancy 100%

Tenants Lease Type

Close Of

Escrow:10/30/2015 Waba Grill NNN

Sales Price: $7,900,000 Jamba Juice NNN

Price/SF: $526.00 Subway NNN

CAP Rate: 5.55% Papa John's Pizza NNN

Year Built: 2010 Avon NNN

Fast Auto Loan NNN

LoDel Insurance NNN

5

LAS PALMAS SHOPPING CENTER

2903 E FLORENCE AVE, HUNTINGTON PARK, CA, 90255

Annual Per SF

Occupancy 100%

Tenants Lease Type

Close Of

Escrow:7/2/2015 McDonald's NNN

Sales Price: $11,737,000 Sprint NNN

Price/SF: $421.00 Autozone NNN

CAP Rate: 5.48% Papa John's Pizza NNN

Year Built: 2000 DJ's Yogurt NNN

Mother's Nutritional NNN

Wateria NNN

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


26

SALES COMPARABLES

6

6620 SOMERSET BOULEVARD

6620 SOMERSET BOULEVARD, PARAMOUNT, CA,

90723

Annual Per SF

Occupancy 100%

Tenants Lease Type

Close Of

Escrow:2/12/2014 Little Caesars NNN

Sales Price: $2,675,000 Metro PCS NNN

Price/SF: $350.00 Golden St. Laundry NNN

CAP Rate: 6.10% Alan's Barber Shop NNN

Year Built: 2006 Helen Beauty Salon NNN


27

MARKET

DEMOGRAPHICS

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2016 Experian

Created on March 2017

POPULATION 1 Miles 3 Miles 5 Miles

2020 Projection

Total Population 27,937 403,069 933,954

2015 Estimate


2010 Census


2000 Census


Current Daytime Population

2015 Estimate 25,086 310,800 787,015

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2020 Projection

Total Households 6,864 98,163 233,934

2015 Estimate


Average (Mean) Household Size 4.00 4.02 3.91

2010 Census


2000 Census


Occupied Units

2020 Projection 6,864 98,163 233,934

2015 Estimate 6,966 99,246 237,031

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2015 Estimate

$150,000 or More 3.73% 2.84% 3.17%

$100,000 - $149,000 10.88% 8.50% 8.98%

$75,000 - $99,999 12.69% 11.26% 10.65%

$50,000 - $74,999 23.37% 20.44% 19.04%

$35,000 - $49,999 15.11% 16.77% 16.00%

Under $35,000 33.61% 39.59% 41.51%

Average Household Income $62,877 $56,828 $56,827

Median Household Income $51,242 $43,805 $42,394

Per Capita Income $15,500 $14,031 $14,375

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles

Total Average Household Retail Expenditure

$66,216 $61,845 $60,983

Consumer Expenditure Top 10 Categories

Housing $20,386 $19,343 $19,149

Shelter $13,557 $13,027 $12,908

Transportation $11,310 $10,566 $10,314

Food $7,320 $7,053 $6,922

Personal Insurance and Pensions $5,288 $4,757 $4,639

Health Care $3,580 $3,151 $3,154

Utilities $3,337 $3,148 $3,108

Entertainment $2,544 $2,327 $2,297

Apparel $1,779 $1,738 $1,719

Household Furnishings and Equipment

$1,546 $1,408 $1,394

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2015 Estimate Total Population 27,863 400,593 924,015

Under 20 31.22% 33.87% 34.00%

20 to 34 Years 24.50% 24.65% 24.43%

35 to 39 Years 6.93% 7.27% 7.08%

40 to 49 Years 13.06% 13.12% 13.00%

50 to 64 Years 15.49% 13.85% 13.99%

Age 65+ 8.82% 7.24% 7.49%

Median Age 31.09 29.43 29.40

Population 25+ by Education Level

2015 Estimate Population Age 25+ 16,713 229,941 529,433

Elementary (0-8) 22.95% 26.45% 23.46%

Some High School (9-11) 13.06% 16.90% 16.56%

High School Graduate (12) 27.78% 25.16% 25.37%

Some College (13-15) 17.98% 14.57% 16.37%

Associate Degree Only 5.09% 4.69% 5.08%

Bachelors Degree Only 7.07% 5.53% 6.21%

Graduate Degree 2.23% 1.94% 2.18%

28

Income

In 2016, the median household income for your selected geography is

$51,242, compare this to the US average which is currently $54,148.

The median household income for your area has changed by 22.95%

since 2000. It is estimated that the median household income in your

area will be $59,471 five years from now, which represents a change

of 16.06% from the current year.

The current year per capita income in your area is $15,500, compare

this to the US average, which is $29,638. The current year average

household income in your area is $62,877, compare this to the US

average which is $77,468.

Population

In 2016, the population in your selected geography is 27,863. The

population has changed by 1.72% since 2000. It is estimated that the

population in your area will be 27,937.00 five years from now, which

represents a change of 0.27% from the current year. The current

population is 49.16% male and 50.84% female. The median age of

the population in your area is 31.09, compare this to the US average

which is 37.55. The population density in your area is 8,867.88 people

per square mile.

Households

There are currently 6,867 households in your selected geography. The

number of households has changed by 2.71% since 2000. It is

estimated that the number of households in your area will be 6,864

five years from now, which represents a change of -0.04% from the

current year. The average household size in your area is 4.00 persons.

Employment

In 2016, there are 5,856 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

45.81% of employees are employed in white-collar occupations in

this geography, and 54.24% are employed in blue-collar occupations.

In 2016, unemployment in this area is 8.42%. In 2000, the average

time traveled to work was 30.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

50.66% White, 2.37% Black, 0.12% Native American and 1.20%

Asian/Pacific Islander. Compare these to US averages which are:

70.98% White, 12.77% Black, 0.19% Native American and 5.25%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 92.12% of the current year

population in your selected area. Compare this to the US average of

17.53%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $379,837 in 2016,

compare this to the US average of $185,104. In 2000, there were

4,080 owner occupied housing units in your area and there were

2,607 renter occupied housing units in your area. The median rent at

the time was $605.

Source: © 2016 Experian

DEMOGRAPHICS

29

offering memorandum atlantic ave south gate ca-… · year built: 2015 baskin-robbins nnn 1 8530...

Documents