1403-1427 broadway chula vista, ca 91911 rare auto service...

BRE # 01971891

619.577.4557 | [email protected]

BRE # 00928868


BRE # 00867784

1403-1427 Broadway Chula Vista, CA 91911

Rare Auto Service Center in Prime Retail Location

Cash on Cash Yield Over 9%

Strong In-Place Cash Flow

Low Lease Turnover with Opportunity to Increase Rents

Fully Renovated and Stable Property

CONFIDENTIALITY AGREEMENT

The material contained in this Offering Memorandum is confidential and for the purpose of considering the purchase of the Real Estate described

herein. It is subject to the terms and provisions of the Confidentiality Agreement signed by the recipient of this material, and is not to be used for

any purpose or made available to any other person without the express written consent of The Heritage Group, Inc. (“Broker”).

This Offering Memorandum was prepared in July 2017, by Broker solely for the use of prospective purchasers of 1380 El Cajon Blvd, El Cajon, CA

92020 (the “Real Estate”). Neither Broker, Owner nor any of their respective officers, employees or agents, make any representation or warranty,

express or implied, as to the completeness or the accuracy of the material contained in the Offering Memorandum or any of its contents, and no

legal commitments or obligations shall arise by reason of this package or any of its contents.

Prospective purchasers of the Real Estate are advised (i) that changes may have occurred in the condition of the Real Estate since the time of this

Offering Memorandum or the financial statements therein were prepared and that (ii) all financial projections are provided for general reference

purposes only in that they are based on assumptions relating to the general economy, competition, and other factors beyond the control of Broker

and the Owner and, therefore, are subject to material variation.

Prospective purchasers of the Real Estate are advised and encouraged to conduct their own comprehensive review and analysis of the Real Estate.

The Offering Memorandum is a solicitation of interest only and is not an offer to sell the Real Estate. The Owner and Broker expressly reserve the

right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Real Estate, and expressly reserve the right, at their

sole discretion, to terminate discussions with any entity at any time with or without notice.

This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you hold and treat the Offering

Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii)

that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior written authorization of Broker, and

(iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the interest of the Owner or Broker.

2

1403-1427 Broadway, Chula Vista, CA 91911

The information set fourth herein has been received by us from sources we believe to be reliable, but we have made no independent investigation of the accuracy or completeness of the information and make no representation with respect thereto. The above is submitted to errors, prior sale or lease, change in status or withdrawal without notice.

3

PURCHASE PRICE: $10,500,000 ($167.05 PSF)

Property Offering: Five Building, Multi-Tenant Automotive Retail Center,

Totaling Approximately 62,855 SF

Address: 1403-1427 Broadway, Chula Vista, CA 91911,

Near the Intersection of Broadway and Palomar

Total Square Feet: 62,855

Occupancy: 100%

Land Area: 4.26 AC

Assessor's Parcel Number: 622-043-37-00

Year Built: 1985

Zoning: Zone C1, Recently Obtained CUP for Automotive Uses

Parking: 190 Parking Stalls (3/1,000 SF),

additional street and neighborhood parking available

Year 1 NOI: $661,119

Capitalization Rate: 6.3%


BRE # 00867784


BRE # 00928868

610 W. Ash Street, Ste. 1503

San Diego, CA 92101

BRE # 01971891

EXCLUSIVELY LISTED BY:


http://www.loopnet.com/for-sale/chula-vista-ca/?sk=822e338daf005840453725a10008b791

• 100% Triple Net (NNN) Leased Investment

• 49% Leased to Nationally Recognized Tenants: 4Wheel

Parts, AAMCO, Caliber Collison and Safelite Auto Glass

• Excellent Location with Direct Access to Interstate 5

4

INVESTMENT HIGHLIGHTS

• Averages Over 9% Leveraged Cash Flow

• Walking Distance to Numerous Retail Amenities

Including National Restaurant Brands

• 3.8% Retail Vacancy in the City of Chula Vista

Including Less than 1.5% Automotive Retail Vacancy

1403

1409

1415

1421 1427


INVESTMENT HIGHLIGHTS

PROPERTY OVERVIEW

The Heritage Group, as agent for the Seller, is pleased to

offer for sale 1403-1427 Broadway (the "Property"), a retail

property located in the city of Chula Vista, California. 49%

of the building is leased to national tenants: 4Wheel Parts

- 2020, AAMCO - 2026, Caliber Collision – 2027, and

Safelite Auto Glass - 2021.

1403-1427 Broadway is a 5 building, multi-tenant

automotive retail center, totaling approximately 62,855 SF.

Constructed in 1985, the Property is outfitted with roll-up

doors and drive-through capabilities in most units. The

project has a full property CUP for all automotive services

by the City of Chula Vista.

The location of the Property on Broadway in Chula Vista is

near busy Broadway and Palomar intersection (traffic

counts are approximately 60,000 cars per day) walking

distance from one of the major commercial hubs in the

city. It is also less than one mile from Interstate 5, which

runs to the San Ysidro border crossing.

5

1403-1427 Broadway


DEMOGRAPHIC SUMMARY

6


1403-1427 Broadway

1-Mile 3-Miles

2017 Total Population 28,001 211,480

2017 Average

Household Income $47,789 $62,919

2017 Total Employees 9,752 51,017

TRAFFIC COUNTS

Broadway & Palomar Street ± 29,295 Cars/Day

Palomar Street & Orange Ave. ± 25,000 Cars/Day

Palomar Street (Between Industrial Boulevard & Broadway)

± 39,230 Cars/Day

SALES COMPARABLES

7


400

-

350

-

300

-

250

-

200

-

150

-

100

-

50

-

0

$167

$221

$410

$199 $200 $221

1189-91

E. Main Street

El Cajon

1060

Auto Center Ct.

Carlsbad

11318-28

Garvey Ave.

El Monte

29770

Bradley Road

Menifee

51

Auto Center Dr.

Irvine

San Diego

Average* Price Per SF

$316.29

Regional


$211.79

Overall


$252.68

*Weighted average

Pri

ce P

er

Sq

uare

Fo

ot

SALES COMPARABLES

8


Submarket / Cluster:

Address:

Sale Date:

Project Size:

Project Type:

Occupancy:

Sale Price:

Actual Cap Rate:

Submarket / Cluster:

Address:

Sale Date:

Project Size:

Project Type:

Occupancy:

Sale Price:

Actual Cap Rate:

San Diego Comps

Regional Comps

Subject Property

Chula Vista / South County Retail

1403-1427 Broadway, Chula Vista

On Market

62,855 SF

Multi-Tenant Automotive Retail

100%

$10,500,000 ($167.05/SF)

6.3%

Sale 1

El Cajon / East County Retail

1189-91 E. Main Street, El Cajon

January 3, 2017

11,966 SF

Multi-Tenant Auto Repair, Class C

100%

$2,647,000 ($221/SF)

Estimated 6.0%

Sale 2

Carlsbad / North County Retail

1060 Auto Center Court, Carlsbad

August 19, 2016

28,904 SF

Multi-Tenant Auto Repair, Class B

100%

$11,850,000 ($410/SF)

Unknown

Sale 3

South Riverside

29770 Bradley Road, Menifee

August 12, 2016

24,616 SF


89%

$4,900,000 ($199.06/SF)

Estimated 6.8%

Sale 4

Western San Gabriel Valley

11318-28 Garvey Ave., El Monte

April 1, 2015

10,000 SF


100%

$2,000,000 ($200/SF)

Estimated 6.64%

Sale 5

Irvine Spectrum

51 Auto Center Drive, Irvine

June 4, 2014

48,487 SF


100%

$10,700,000 ($221/SF)

Estimated 6.21%

SITE PLAN

9


17


METRO OVERVIEW

Chula Vista, California

~ Second largest city in San Diego County

The City of Chula Vista is located 7.5 miles due

south of Downtown San Diego, and 7.5 miles

north of the Mexican border. The city was

founded in the early 19th

century, and its

citizens voted to incorporate in 1911. Chula

Vista was the largest lemon growing center in

the world for a period of time. The city covers

approximately 52 square miles of coastal

landscape, rolling hills mountains and parks,

with a population of around 250,000.

The city is home to a 375-acre University Park

and Innovation District site, and a 155-acre

Olympic training facility, and one of the

county’s largest concert amphitheaters.

Chula Vista is a leader in conservation and

renewable energy, has outstanding public

schools and has been named one of the safest

cities in the country.

AREA HIGHLIGHTS

San Diego Metropolitan Area

San Diego is a major city in Southern California,

located approximately 120 miles south of Los

Angeles and immediately adjacent to the

border with Mexico. It is the second largest city

in California and the eighth largest in the

United States. It is known for its mild

year-round climate, natural deep-water harbor,

and extensive beaches.

The city has a long association with the United

States Navy and has recently committed to

building a 600-acre SEAL training center a

mere 2 miles away from the subject property.

San Diego's main economic engines are

military and defense related activities, tourism,

international trade and manufacturing. This is

influenced by its deep-water port, which

includes the only major submarine and

shipbuilding yards on the West Coast.

MARKET OVERVIEW

San Diego Retail ~ Chula Vista Submarket

The San Diego Market is starting off 2017 with

positive year-over-year employment growth.

The top performing industries in 2016 were

government, education and health services,

and professional and business services.

Overall, employers hired nearly 30,000 new

workers last year, the fifth consecutive year of

gains at or above 30,000. San Diego’s new

retail development is slowing below its historic

pace, instead shifting focus to mixed use

projects where retail is incorporated into the

ground floor of multi-family or office buildings.

The vacancy rate for Retail in every region in

San Diego is at or below 9.3%.

In the Chula Vista submarket, overall

availability was 6.8%, with vacancy of 3.8% in

the first quarter. The average asking lease rate

was $2.35 (gross estimate). Major

developments include The Millenia Project and

the 535-acre Chula Vista Bayfront Project.

http://www.chulavistaca.gov/residents/university-park-innovation-district

http://www.chulavistaca.gov/residents/university-park-innovation-district

http://www.easchulavista.com/about-us/

http://www.sandiegouniontribune.com/military/sdut-navy-seal-silver-strand-training-complex-2014jul27-story.html

http://www.milleniasd.com/

https://www.portofsandiego.org/chula-vista-bayfront-master-plan/overview.html


CHULA VISTA DEVELOPMENT

Chula Vista Bayfront

& Convention Center

18

Navy SEAL

Training Facility

University

Innovation District

Millenia Project

Elite Athlete

Training Center

(Olympic Training)


BRE # 01971891


BRE # 00928868


BRE # 00867784

1403-1427 broadway chula vista, ca 91911 rare auto service...

Documents