offering memorandum scott g. hook …...6242 beach blvd, buena park, ca 90621 1 2429 w ball rd,...
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19800 MACARTHUR BLVD. , SUITE 150, IRVINE , CA 92612 | WWW.HOOKRE TAIL ADVISORS.COM | WWW.MARCUSMILLICHAP.COM
OFFERING MEMORANDUM
POKICRAFT & OC THREADING SALON
6242 Beach BlvdBuena Park, CA 90621
DAN FILLETAssociate P: (949) 419.3314 C: (714) [email protected] Lic# 02016909
SCOTT G. HOOK Senior Vice PresidentP: (949) 419.3224 C: (949) [email protected] Lic# 00914392
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 Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.
This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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, 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
DAN FILLETAssociate P: (949) 419.3314 C: (714) [email protected] Lic# 02016909
SCOTT G. HOOK Senior Vice PresidentP: (949) 419.3224 C: (949) [email protected] Lic# 00914392
19800 MACARTHUR BLVD., SUITE 150, IRVINE, CA 92612 WWW.HOOKRETAILADVISORS.COM | WWW.MARCUSMILLICHAP.COM
TABLE OF CONTENTS
INVESTMENT OVERVIEWInvestment Overview 4Investment Summary 5Income & Expenses 6Property Photos 7Retailer Map 9Aerial Map 10Location Maps 11Regional Map 12
COMPETITIVE PROPERTY SETSale Comparables 14Sale Comparables Map 16Sale Comparables Graph 17
AREA OVERVIEWCity Overview 20The Source OC 21Knott’s Berry Farm 22Coming Soon to Buena Park 23
EXCLUSIVELY MARKETED BY:
INVESTMENT OVERVIEWInvestment OverviewInvestment Summary
Income & ExpensesProperty Photos
Retailer MapAerial Map
Location MapsRegional Map
HOOK RETAIL ADVISORS | 4 |
INVESTMENT OVERVIEW
Property is located on the SE corner of Beach Blvd and W Commonwealth Ave in the heart of Buena Park just north of 5 freeway. Beach Blvd is a major north-south thoroughfare leading directly south a short distance into the Entertainment Corridor which contains a variety of well-known attractions including Knott’s Berry Farm and Knott’s Soak City. Additionally, Beach Blvd provides immediate access to 5 and 91 freeways traversing the Southland. Major streets bordering the immediate area are Artesia Blvd to the north, and Orangethorpe Ave to the south.
» 2-Tenant Retail Investment Property » Under market rent on 46% GLA » Current term 5-year (Pokicraft); 3-year (OC Threading) » ~2 years, 8 months remaining » Annual rent increases » Well-maintained property » Parking ratio 4.90/1000 SF (11 spaces, including 1 handicap) » High Traffic Count(Combined Beach Blvd/Commonwealth) +/- 71,500 VPD » Hard signalized corner less than half a mile from Interstate 5 freeway and less than a mile from the 91 freeway
» Property is located a short distance north of the Entertainment Corridor, Knott’s Berry Farm, and Knott’s Soak City
Investment Overview Location Overview
HOOK RETAIL ADVISORS | 5 |
INVESTMENT SUMMARY
Investment Summary
Sale Price: $1,878,000
Cap Rate: 4.57%
APN: 277-031-01
Lot Size: 0.30 AC (13,068 SF)
Building Size: 2,243 SF
Year Built: 2006
Zoning: Commercial/Retail
Sub Market: Buena Park/La Palma
88,025EMPLOYEES WITHIN A 3 MILE RADIUS
6,226BUSINESSES WITHIN A 3 MILE RADIUS
$94,349AVERAGE HOUSEHOLD INCOME
HOOK RETAIL ADVISORS | 6 |
INCOME & EXPENSES
Tenant Unit SF GLA % Current Rent/Month
Month Rent/SF
Current Rent/Year
Escalation Terms Lease Expiration 2019 Rent
EscalationOptions to
Renew
Pokicraft 1,212 54% $5,409.53 $4.46 $64,914.36 NNN CPI
3% Min8% Max September 30, 2021 $1,947 (Min.)
1 five (5) Year option with annual
increases at CPI (3% min).
OC Threading Salon 1,031 46% $2,723.11 $2.64* $32,677.32 Gross Fixed 4.3% July 31, 2021 $1,406 None
TOTAL 2,243 100% $8,132.64 $3.63 $97,592 $3,353
EXPENSES
Annual Property Taxes (Based on $1.878M List Price) $21,034.00 Adjusted Est. Prop Tax @ 1.12% Rate
Annual Insurance $1,812.00
CAM $300/Mo. $3,600.00
TOTAL EXPENSES $26,446.00
Current 2019
Scheduled Base Rent $97,592 $100,945
NNN Reimbursement $14,740 $14,740
Total Income $112,332 $115,685
Less Expenses $26,446 $26,446
Net Operating Income $85,886 $89,239
* Proforma NOI Increase @ $4.00 PSF OC Threading Salon 08-01-2021= $1.36 x 1,031 SF = $1,402/month x 12 Proforma NOI Increase = $16,826. Proforma Increased Value @ 4.57% cap = $368,182
HOOK RETAIL ADVISORS | 7 |
PROPERTY PHOTOS
Nishi Poke & Ramen Bistro is currently subleasing from the tenant Pokicraft. It is a unique Japanese restaurant concept with locations in West L.A., Culver City, and a fourth location planned in the Los Angeles area. Nishi Poke & Ramen Bistro has made substantial improvements to the interior dining and kitchen areas at the Buena Park property. Pokicraft remains responsible for monthly rent through end of the term, though Nishi Poke & Ramen Bistro with multiple locations and expansion plans has greater brand equity, name recognition, and is likely a stronger tenant and operator.
HOOK RETAIL ADVISORS | 8 |
PROPERTY PHOTOS
0 0.1 0.2 0.3 0.40.05Miles
HOOK RETAIL ADVISORS | 9 |
RETAILER MAP
ORANGETHORPE AVE
BEA
CH
BLV
D
W COMMONWEALTH AVE (14,000 VPD)
I-5 FREEWAY (196,000 VPD)
(57,
500
VPD
)
SUBJECT PROPERTY
AUTO DEALERSHIP
1 Car Max Auto Dealership2 Ken Grody Ford Auto Dealership3 Buena Park Honda Auto Dealership4 Toyota Auto Dealership5 Buena Park Nissan Auto Dealership6 Simpson Buick GMC Auto Dealership7 Tesla Auto Dealership8 BMW Auto Dealership9 House of Imports Auto Dealership
1
2
3
4
6
8
5
7
9
RETAIL
10 Ganahl Lumber11 Stater Bros. Markets12 The Source13 Target 10
11
12
13
HOTEL
14 Surestay Hotel15 Fairfield Inn & Suites16 Holiday Inn17 Days Inn18 Howard Johnson19 Good Nite Inn20 Buena Park Manor
14
15
16
17
18
19
20
RESTAURANTS
21 Arby’s22 Pizza Hut23 KFC24 Sizzler25 Fuddruckers26 Denny’s27 Wendy’s28 Black Angus29 Black Bear Diner30 McDonald’s
2122
23
2425
2627
28
29
30
BEA
CH
BLV
D
Fullerton Municipal
Airport
Knott’s Berry Farm
0 0.035 0.07 0.105 0.140.0175Miles
HOOK RETAIL ADVISORS | 10 |
AERIAL MAP
W COMMONWEALTH AVE (14,000 VPD)
(57,
500
VPD
)
SUBJECT PROPERTY
BEA
CH
BLV
D
I-5 FREEWAY (196,000 VPD)
TOP 10 EMPLOYERS IN BUENA PARK # OF EMPLOYEES
1 Knott's Berry Farm 5,0712 Prologis 8003 Leach 4834 Access Business Group 4795 PepsiCo 4776 J. C. Penney 3827 ADP 3588 Yamaha 3429 RIA Financial Services 30810 City of Buena Park 303
AUTO CENTER DRIVE
HOOK RETAIL ADVISORS | 11 |
LOCATION MAPS
HOOK RETAIL ADVISORS | 12 |
REGIONAL MAP
SALE COMPARABLES Sale Comparables
Sale Comparables MapSale Comparables Graph
HOOK RETAIL ADVISORS | 14 |
SALE COMPARABLESPHOTO ADDRESS SALE PRICE SOLD DATE CAP RATE PRICE/SF BUILDING SF LOT SIZE YEAR BUILT DESCRIPTION
Subject Property
6242 Beach BlvdBuena Park, CA 90621 $ 1,878,000 TBD 4.57% $837.27 2,243 SF 0.30 AC 2006 Retail
1 2429 W Ball RdAnaheim, CA 92804 $2,580,000 8/31/2018 $1,011.76 2,550 SF 0.69 AC 1978 Retail
Investment
2 19131 Brookhurst StHuntington Beach, CA 92646 $2,765,000 8/30/2018 4.71% $848.16 3,260 SF 0.46 AC
1969/Renov 1998
Retail Investment
3 1825 E Katella AveOrange, CA 92867 $2,788,000 7/5/2018 4.50% $824.85 3,380 SF 0.29 AC 1969 Retail
Investment
4 124 E 17th StCosta Mesa, CA 92627 $2,650,000 6/18/2018 4.35% $1,132.48 2,340 SF 0.20 AC 1961 Retail
Owner/User
HOOK RETAIL ADVISORS | 15 |
SALE COMPARABLESPHOTO ADDRESS SALE PRICE SOLD DATE CAP RATE PRICE/SF BUILDING SF LOT SIZE YEAR BUILT DESCRIPTION
5 681 S Beach BlvdLa Habra, CA 90631 $2,075,000 3/23/2018 $592.86 3,500 SF 0.42 AC 2006 Retail
6 2751 W Orangethorpe AveFullerton, CA 92833 $2,350,000 3/19/2018 3.23% $814.84 2,884 SF 0.48 AC 1985 Retail
7 13471 Magnolia StGarden Grove, CA 92844 $4,150,000 2/23/2018 4.00% $1,257.58 3,300 SF 0.63 AC 1985 Retail
8 1201 E La Habra BlvdLa Habra, CA 90631 $3,450,000 2/16/2018 4.10% $1,197.92 2,880 SF 0.52 AC 2005 Retail
HOOK RETAIL ADVISORS | 16 |
SALE COMPARABLES MAP
6242 Beach Blvd, Buena Park, CA 90621
1 2429 W Ball Rd, Anaheim, CA 92804
2 19131 Brookhurst St, Huntington Beach, CA 92646
3 1825 E Katella Ave, Orange, CA 92867
4 124 E 17th St, Costa Mesa, CA 92627
5 681 S Beach Blvd, La Habra, CA 90631
6 2751 W Orangethorpe Ave, Fullerton, CA 92833
7 13471 Magnolia St, Garden Grove, CA 92844
8 1201 E La Habra Blvd, La Habra, CA 90631
5
1
7
6
2
4
3
Subject Property
8
HOOK RETAIL ADVISORS | 17 |
CAP RATE GRAPH
4.57%4.71%
4.50%
3.23%
4.00%4.10%
Subject Property 2 3 6 7 80.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
CAP RATE
Avg Cap Rate
4.11%
HOOK RETAIL ADVISORS | 18 |
PRICE PER SF GRAPH
$837
$1,012
$848 $825
$1,132
$593
$815
$1,258 $1,198
SubjectProperty
1 2 3 4 5 6 7 8$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
PRICE PER SQUARE FOOT
Avg PSF$960
AREA OVERVIEWCity Overview
The Source OCKnott’s Berry Farm
Coming Soon to Buena Park
HOOK RETAIL ADVISORS | 20 |
CITY OVERVIEW
Population 1 Mile 3 Mile 5 Mile
2018 Total Population: 33,240 281,215 677,962
2023 Population: 34,277 291,141 701,102
Pop Growth 2018-2023: 0.62% 0.70% 0.67%
Average Age: 36.0 34.9 36.1
Households
2018 Total Households: 9,865 80,988 197,099
HH Growth 2018-2023: 0.47% 0.54% 0.52%
Median Household Inc: $72,241 $75,922 $82,243
Avg Household Size: 3.32 3.43 3.39
2018 Avg HH Vehicles: 2 1 2
Housing
Median Home Value: $462,783 $484,824 $532,202
Median Year Built: 1953 1960 1958
Located in northwest Orange County, Buena Park is
a Charter City operating under the Council-Manager
form of government. The City has approximately 400
employees with an annual budget of $108,823,810 (all
funds). Buena Park is located 21 miles southeast of Los
Angeles, and is referred to locally as the “Center of the
Southland” due to its easy access to both the 91 and 5
freeways. With a diverse population of 83,000, Buena
Park offers quality residential areas, excellent cultural
and recreational facilities, and a stable economy
within its 10.3 square miles.
The strong local economy includes the Entertainment
Corridor, which contains a variety of well-known
attractions, including Knott’s Berry Farm, Pirate’s
Dinner Adventure, Medieval Times Dinner and
Tournament, several hotels, and secured development
plans for several more exciting entertainment and
lodging venues. In addition, the City has a thriving
Auto Center and approximately 100 manufacturing
and warehousing companies. Some of the larger
employers in the City include Nutrilite, Georgia Pacific,
Leach International, and Yamaha Music.
HOOK RETAIL ADVISORS | 21 |
THE SOURCE OCSouthern California’s newest lifestyle and entertainment destination, The Source offers a unique, innovative dining, retail, and entertainment experience
that is unprecedented in Southern California. The Source showcases state-of-the-art technologies including Times Square-esque LED’s located at the
pedestrian entrance of The Source. The Source is located less than a mile from the subject property.
HOOK RETAIL ADVISORS | 22 |
KNOTT’S BERRY FARM
Knott’s Berry Farm is a 160-acre theme park
located in Buena Park, California, and owned by Cedar Fair. In 2017,
it was the tenth-most-visited theme park in North America.
Knott’s Berry Farm is also the most-visited theme park in the Cedar
Fair chain. The park features 40 rides including roller coasters, family
rides, and water rides, and it employs approximately 10,000 people.
The origin of the theme park dates back to 1920, when Walter Knott and
his family began selling berry products at a roadside stand along State
Route 39 in California. By the 1940s, a restaurant, several shops, and
other attractions had been constructed on the property to entertain
a growing number of visitors, including a replica ghost town. The site
continued its transformation into a modern amusement park over the
next two decades, and an admission charge was added in 1968. The
park was sold to Cedar Fair in the late 1990s, and the family’s food
business was eventually acquired by The J. M. Smucker Company.
HOOK RETAIL ADVISORS | 23 |
COMING SOON TO BUENA PARKSouthern California is one of the top entertainment/tourism destinations in the world and the City of Buena Park rests in the middle of it all -
strategically located in Orange County just minutes from Disneyland, Hollywood, Beverly Hills, Newport Beach, Downtown Los Angeles, and five
major commercial airports. Entertainment and tourism attractions along the Beach Boulevard Entertainment Zone in Buena Park generate 6.4
million visits annually. The Zone is anchored by legendary amusement park Knott’s Berry Farm and Soak City Water Park, Medieval Times, Pirates
Dinner Theatre, Rock & Brews, The Source, and the newly opened Porto’s Bakery & Cafe. Fifteen hotels are interspersed throughout the district
with over 2000 rooms, and twenty-five restaurants compliment the area- all just 6 miles from the Disneyland Resort.
Hotel Sanford
Butterfly Palladium
Aloft Hotel
DAN FILLETAssociate
P: (949) 419.3314 C: (714) 307.8187
[email protected] Lic# 02016909
SCOTT G. HOOK Senior Vice President
P: (949) 419.3224 C: (949) 290.8884
[email protected] Lic# 00914392
19800 MACARTHUR BLVD., SUITE 150, IRVINE, CA 92612 WWW.HOOKRETAILADVISORS.COM | WWW.MARCUSMILLICHAP.COM
EXCLUSIVELY MARKETED BY: