convenience center

La PalmaC O N V E N I E N C E C E N T E R

7811-7971 Valley View Street, La Palma, California

O F F E R I N G M E M O R A N D U M

VALUE-ADD RETAIL INVESTMENT OPPORTUNITY

F O R M O R E I N F O R M A T I O N P L E A S E C O N T A C TJOSEPH LISING

Lic. #01248258

[email protected]

+1 949 372 4896

D I S C L A I M E R

Table of Contents

01executive summary

page 4

02property overview

page 14

03area overview

page 16

01

02

03

This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and constitutes part of the

Confidential Information (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible investment in 7961 Valley View St, La Palma, CA (the “Project”),

and is not to be used for any other purpose or made available to any other party without the prior written consent of Cushman & Wakefield. This Memorandum was prepared by Cushman & Wakefield based

primarily on information supplied by Ownership. It contains select information about the Project and the real estate market but does not contain all the information necessary to evaluate the Project.

The financial projections contained herein (or in any other Confidential Information) are for general reference only. They are based on assumptions relating to the overall economy and local competition,

among other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be

a comprehensive statement of the terms or a legal analysis of such documents. While the information contained in this Memorandum and any other Confidential Information is believed to be reliable, neither

Cushman & Wakefield nor Ownership guarantees its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered on an “As Is, Where Is” basis, a prospective

investor or other party authorized by the prospective investor to use such material solely to facilitate the prospective purchaser’s investigation, must make its independent investigations, projections and

conclusions regarding the investment in the Project without reliance on this Memorandum or any other Confidential Information. Although additional Confidential Information, which may include engineering,

environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers and

environmental experts.

Neither Cushman & Wakefield nor Ownership guarantees the accuracy or completeness of the information contained in this Memorandum or any other Confidential Information provided by Cushman & Wakefield

and Ownership. Ownership expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with or without written

notice. Ownership shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Ownership and any

conditions to Ownership’s obligations thereunder have been satisfied or waived. Ownership has retained Cushman & Wakefield as its exclusive broker and will be responsible for any commission due to Cushman

& Wakefield in connection with a transaction relating to the Project pursuant to a separate agreement. Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Ownership.

Each prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or

its broker.

Neither Cushman & Wakefield nor Ownership guarantees the accuracy or completeness of the information contained in this Memorandum or any other Confidential Information provided by Cushman & Wakefield

and Ownership. Ownership expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with or without written

notice. Ownership shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Ownership and any

conditions to Ownership’s obligations thereunder have been satisfied or waived. Ownership has retained Cushman & Wakefield as its exclusive broker and will be responsible for any commission due to Cushman

& Wakefield in connection with a transaction relating to the Project pursuant to a separate agreement. Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Ownership.

Each prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or

its broker.

This Memorandum is the property of Ownership and all parties approved by Ownership and may be used only by parties approved by Ownership. No portion of this Memorandum may be copied or otherwise

reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement.

MATTHEW GODMAN

Lic. #02080586

[email protected]

+1 949 372 4897

CUSHMAN & WAKEFIELD | 3 2 | 7961 VALLEY VIEW STREET, LA PALMA, CA

Executive Summary

P R O P E R T Y O V E R V I E W

Type Retail

Building Sq. Ft. ±23,882 Sq. Ft.

Stories 1

Year Built 1975

Year Renovated 2021

Land Acres ±2.86 Acres

Zoning C-1

Parcel 263-241-48

Net Operating Income $658,635

$13,580,110 4.85%CAP RATE

Executive Summary Executive Summary

I N V E S T M E N T H I G H L I G H T S

VALUE-ADD RETAIL CENTER ON PROMINENT CORNER IN ORANGE COUNTY

• 23,882 square foot multi-tenant shopping center shadow-anchored by Walgreens

• Newly Renovated Center in 2021 featuring 16 tenants

• Brand New Popeye’s Drive-Thru Pad Building

• Jamba Juice and Auntie Anne’s joining the center in early 2022

COMPLEMENTARY MIX OF INTERNET-RESISTANT TENANTS

• 94% of the occupied square footage is leased to daily needs, food, and service-based retailers.

• 70% of the tenants have occupied space at the property for 9 years or longer.

OUTSTANDING UPSIDE POTENTIAL

• 31% of the tenants in the center are approximately 50% below average market rents for newer constructed or recently renovated retail shopping centers in the trade area.

EXCELLENT VALUE-ADD INVESTMENT OPPORTUNITY

• 23,882 square feet of the offering consists of three separate buildings occupied by 16 tenants on shorter-term leases. The subject offering provides a prospective investor with a multitude of repositioning options in the near future.

CENTRAL ORANGE COUNTY FREEWAY ACCESSIBLE LOCATION

• Less than 1 mile from the 91 Freeway (280,000 cars per day), 3.5 miles from the 5 Freeway (273,000 cars per day), and 3.5 miles from the 605 Freeway (222,000 cars per day).

PRICE

HARD CORNER SIGNALIZED LOCATION

The subject property is ideally situated at the high traffic intersection of Valley View Street and La Palma Avenue (66,000 cars per day) and features over 600 feet of frontage along Valley View Boulevard (42,000 cars per day).

EXCELLENT ACCESSIBILITY, IDENTITY AND VISIBILITY

The property benefits from four points of ingress/egress and two prominent monument signs along Valley View Street and La Palma Avenue.

CLOSE PROXIMITY TO MAJOR DAILY TRAFFIC GENERATORS

• Cypress College has an annual enrollment of 16,000 students (located 1 mile south of the subject property)

• Centerpointe, a 42-acre mixed-use business park houses several corporations such as City National Bank, Honeywell, GE Healthcare, Kaiser Permanente, Samsung, Tesoro, and USA Today (located 1 mile north of the subject property)

• Knott’s Berry Farm, a 160-acre amusement park attracting 3.6 million visitors per year (located 2 miles east of the subject property)

AFFLUENT DEMOGRAPHICS

The city of La Palma was ranked as one of the “Best Places to Live” by Money Magazine in 2015 and boasts an average household income of over $119,000 within the city limits.

DENSE, INFILL ORANGE COUNTY LOCATION

More than 630,000 people within a 5-mile radius.

4 | 7961 VALLEY VIEW STREET, LA PALMA, CA CUSHMAN & WAKEFIELD | 5

Executive SummaryExecutive Summary

F I N A N C I A L A N A L Y S I S

Now Open!Johnie’s Jr.

Burgers

VALLEY VIEW ST - 50,600 VPD

LA PALMA AVE - 26,000 VPD

R E T A I L E R M A P


Financials Current Pro Forma

Gross Potential Rent $668,431 $721,211

Expense Reimbursements $234,999 $250,852

Effective Gross Income $898,724 $972,063

Operating Expenses ($244,795) ($250,852)

Net Operating Income $658,635 $721,211

CAP Rate 4.85% 5.31%

Estimated Expenses Current Pro Forma

CAM Expenses $40,820 $42,045

Utilities $32,358 $33,329

Property Insurance $11,106 $11,439

Property Tax $128,566 $131,136

Management (4% of GPR) $31,945 $32,903

Total $244,795 $250,851

Expenses / SF $10.25/SF $10.50



R E C E N T R E N O V A T I O N S K E Y T E N A N T S

Founded in New Orleans, Louisiana in 1972, Popeyes is the second-largest “quick service chicken restaurant group”. Popeyes has 3,102 restaurants worldwide.

Popeyes is famous for its New Orleans-style food, specifically fried chicken and buttermilk biscuits. The brand distinguishes itself through its Cajun and creole flavors which reflect Louisiana and its rich culinary heritage.

Despite the worldwide pandemic, sales increased to 5 billion in 2020. As most restaurants reported a dramatic decrease in sales, Popeyes has remained COVID-resistant.

Company Type: Public

Locations: 3,102

Website: www.popeyes.com

Maxwell Chicken Rice is inspired by the vibrant hawker centre food stands in Singapore. Our Hainan chicken highlights the unique and intoxicating flavor of this classic comfort food. For simple yet flavorful Hainan chicken come check us out!

Maxwell Chicken Rice recently opened a pop-up shop in China Town, Los Angeles and was featured in Eater LA as one of the essential ‘must try’ restaurants! They are in the process of opening another location in Northridge, CA.

Company Type: Private

Locations: 3

Website: www.maxwellchickenrice.com

Jamba Juice is a global healthy lifestyle brand that inspires and simplifies healthful living through freshly blended whole fruit and vegetable smoothies, bowls, juices, cold-pressed shots, boosts, snacks, and meal replacements.

The 800-unit brand known for its smoothies was recently acquired by Focus Brands. Jamba’s evolution will continue for the brand, including a new look and feel, expansion of convenience and consumer-facing technology and healthier menu innovations.


Locations: 800+

Website: www.focusbrands.com

Johnie’s Jr Broiler’s story begins with two energetic and talented brothers, George and Nick. The original Johnie’s Coffee Shop on Wilshire and Fairfax in Los Angeles established George’s authentic passion for American Diner cuisine. Running from 1980 - 2000, Johnie’s Coffee Shop was the foundation in which the brothers’ vision emerged.

Johnie’s Jr. has earned the reputation as being authentic, dependable, and having high quality food. Their extensive line of breakfast, burgers, sandwiches, dinners and overall fresh food, ultimately bringing together impeccable tastes and flavors, are perfect any time of the day.


Locations: 1

Website: www.johniesjr.com8 | 7961 VALLEY VIEW STREET, LA PALMA, CA CUSHMAN & WAKEFIELD | 9


http://www.popeyes.com

http://www.maxwellchickenrice.com

http://www.focusbrands.com

https://www.johniesjr.com/

R E C E N T L Y S O L D C O M P A R A B L E S

01 02 03

Bolsa Promenade Center16446-16490 Bolsa Chica St

Huntington Beach, CA

Harbor Pacific Court2346 Newport Blvd

Costa Mesa, CA

Marina Center6200-6252 E Pacific Coast Hwy

Long Beach, CA

Sale Date 8/12/2021 5/28/2021 8/12/2021

Sale Price $7,800,000 $5,500,000 $16,200,000

Cap Rate 4.35% 4.65% 4.35%

Price/ Sq. Ft. $364.52 $467.25 $494.55

Building Sq. Ft. 21,398 SF 11,771 32,757 SF

Land Area Acres 2.00 AC 0.88 AC 2.04 AC

Year Built 1977 1987 1989

Occupancy 96% 100% 85%

CUSHMAN & WAKEFIELD | 11

PROPERTY OVERVIEW

10 | 7961 VALLEY VIEW STREET, LA PALMA, CA

Executive Summary

R E N T R O L L

RENT ROLL AS OF JANUARY 1ST, 2022

Suite Tenant Name Sq. Ft. Percent of GLA Expires Lease Monthly Rent Rent/Sq. Ft.

7811 Johnie's Jr. Burgers 1,566 7% 10/31/2030 NNN $5,027 $3.21

7821 New Tenant 1,504 6% - NNN $3,760 $2.50

7831 Dog Grooming 1,220 5% 9/30/2026 NNN $2,745 $2.25

7841 Salon 900 4% 6/30/2023 NNN $1,554 $1.73

7851 Paris Nails 868 4% 6/30/2026 NNN $1,953 $2.25

7861 Waldman Tax 1,130 5% 11/30/2026 NNN $2,147 $1.90

7871 Minuteman Press 1,000 4% 10/31/2026 NNN $2,100 $2.10

7881 La Palma Dental Care 1,765 7% 10/31/2026 NNN $3,707 $2.10

7911 Wok Experience 1,208 5% 12/31/2030 NNN $3,322 $2.75

7921 Viola Veterinary Hospital 1,753 7% 1/15/2031 NNN $3,944 $2.25

7931 Maxwell's Chicken 800 3% 6/30/2031 NNN $2,000 $2.50

7925/7951/7955 Komberg Chiropractic 3,685 15% MTM NNN $5,196 $1.41

7941 Jamba Juice 1,500 6% 9/30/2026 NNN $3,375 $2.25

7945 Hair Salon 900 4% 8/31/2022 NNN $1,730 $1.92

7961Medical Equipment and Supplies

1,665 7% 11/30/2022 NNN $2,867 $1.72

7971 Popeyes 2,418 10% 4/30/2041 NNN $10,277 $4.25

Total 23,882 100% $55,703 $2.33

P R O F O R M A R E N T R O L L

RENT ROLL AS OF DECEMBER 31ST, 2022

Suite Tenant Name Sq. Ft. Percent of GLA Expires Lease Monthly Rent Rent/Sq. Ft.

7811 Johnie's Jr. Burgers 1,566 7% 10/31/2030 NNN $5,027 $3.21

7821 New Tenant 1,504 6% - NNN $3,760 $2.50

7831 Dog Grooming 1,220 5% 9/30/2026 NNN $2,745 $2.25

7841 Salon 900 4% 6/30/2023 NNN $1,554 $1.73

7851 Paris Nails 868 4% 6/30/2026 NNN $1,953 $2.25

7861 Waldman Tax 1,130 5% 11/30/2026 NNN $2,147 $1.90

7871 Minuteman Press 1,000 4% 10/31/2026 NNN $2,100 $2.10

7881 La Palma Dental Care 1,765 7% 10/31/2026 NNN $3,707 $2.10

7911 Wok Experience 1,208 5% 12/31/2030 NNN $3,322 $2.75

7921 Viola Veterinary Hospital 1,753 7% 1/15/2031 NNN $3,944 $2.25

7931 Maxwell's Chicken 800 3% 6/30/2031 NNN $2,000 $2.50

7925/7951/7955 New Tenant 3,685 15% TBD NNN $8,291 $2.25

7941 Jamba Juice 1,500 6% 9/30/2026 NNN $3,375 $2.25

7945 New Tenant 900 4% TBD NNN $2,070 $2.30

7961 New Tenant 1,665 7% TBD NNN $3,830 $2.30

7971 Popeyes 2,418 10% 4/30/2041 NNN $10,277 $4.25

Total 23,882 100% $60,101 $2.52


PROPERTY OVERVIEWPROPERTY OVERVIEW

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EXIS

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CUR

B

9

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"0- "0- EE GG

EE

EXISTING CURB

9

TE

EXIS

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EXISTINGWALGREEN13,000 SF

N.A.P.

WALGREENPARCELN.A.P.

7971 VALLEYVIEW STBLDG ‘A’

(EXISTING)

7821 THRU 7945 VALLEY VIEW ST.BLDG ‘C’

7961 7955 7951 7945 7931 7925 7921 7881 7871 7861 7851 7841 7831 7821

7811 VALLEYVIEW STBLDG ‘B’

VIEW ST

S I T E P L A N A R E A O V E R V I E W DEMOGRAPHIC SUMMARY

1 Mile 3 Miles 5 Miles

Population

2024 Population 26,875 233,394 610,171

2021 Population 27,134 233,985 613,293

2010 Population 27,738 228,684 606,239

Households

2024 Households 8,307 70,854 182,249

2021 Households 8,384 71,023 183,260

2010 Households 8,556 69,417 181,691

Household Income 2021

Income $ 35,000 - $49,999 13.7% 12.6% 12.3%

Income $ 50,000 - $74,999 22.0% 18.6% 17.6%

Income $ 75,000 - $99,999 13.2% 14.0% 14.0%

Income $100,000 - $124,999 9.3% 11.2% 11.0%

Income $125,000 - $149,999 6.0% 6.0% 6.6%

Income $150,000 + 6.5% 10.8% 12.6%

Income $200,000 + 6.5% 10.8% 12.6%

Average Household Income $126,382 $107,828 $107,316

Median Household Income $106,902 $87,005 $86,479

LA PALMA, CA

La Palma was incorporated on October 26, 1955. It was originally incorporated as Dairyland, and was one of three dairy cities in the region (the other two being Dairy Valley, now Cerritos, and Dairy City, now Cypress) but when the dairies moved east in 1965, the name of the community was changed to La Palma, after the region’s Spanish heritage and its main thoroughfare, La Palma Avenue. Soon after the small farming community began its life, City planners decided that the City should benefit from a long-term program for orderly development.

The Civic Center and Central Park, now La Palma’s premier gathering places, were among the first projects to be completed to better the community. The City’s major redevelopment project, Centerpointe, added new commercial and light industrial uses in the early 1980s. La Palma is a well balanced city which prides itself on a responsive municipal government and a strong sense of community. The City’s small town character allows residents to live in quiet and friendly neighborhoods. With one of the lowest crime rates in Orange County, La Palma is a place where residents can rest easy and enjoy hometown living. The City has been ranked one of America’s Best Places to Live, by Money Magazine in 2007, 2011, 2013, and 2015.

ORANGE COUNTY, CA

Orange County has one of the strongest retail markets in the nation, with market fundamentals supported by an undersupplied retail inventory of 143.7 million square feet serving 3.2 million people. Major landowners and land developers, such as The Irvine Company, have historically controlled the new inventory of Orange County’s retail inventory in order to support the market’s entrepreneurial spirit and experience relatively strong rental and occupancy performance. The result is a 4.5% vacancy rate during 2020 (even under COVID market constraints), and a history of sub 5% vacancy rates. The average asking PSF rental rate for retail space in the County equals $31.98 annually on a triple net basis and is projected to increase to $36.66 by 2025.

Orange County has an estimated population of 3.19 million residents and its Annual Gross County Product (GCP) equaled $260.5 billion in 2018 according to Chapman University Center for Economic Research. There is approximately $42.3 billion in economic output generated in Orange County. Some of the largest employers include: Walt Disney Co., University of California Irvine, County of Orange, St. Joseph Health System, Boeing, Walmart, and Hoag Memorial Hospital


PROPERTY OVERVIEWPROPERTY OVERVIEW

LOSANG E L ES

WEST COVINA POMONA

6071

72

710

710

39

39

91

24155

1

405

19605

605

22

5

405

19

91

DIAMOND BAR

55

575

05

110

405

SANTA ANA

IRVINE

ANAHEIM

FULLERTON

ORANGE

GARDEN GROVE

CHINO HILLS

FOUNTAINVALLEY

TUSTIN

COSTA MESA

LA HABRA

YORBA LINDA

MONTEREY PARK10

HACIENDA HEIGHTS

105

1

9191

42

42

110

5

ANCE

CARSON

COMPTON

LONG BEACH

WOOD

GARDENA

NE

PARAMOUNT

LYNWOOD

SOUTH GATE

FLORENCE-GRAHAM

BELLFLOWER

LAKEWOOD

ARTESIA

CERRITOS

SANTA FE SPRINGS

PICO RIVERA

MONTEBELLO

COMMERCE

BELL GARDENS

HUNTINGTON PARK

WEST RANCHODOMINGUEZ

WESTMONTSOUTH WHITTIER

WHITTIER

SEAL BEACH

LOS ALAMITOS

CYPRESS

BUENA PARK

BREA

ROWLAND HEIGHTS

PLACENTIA

WALNUTLA PUENTE

WESTMINSTER

STANTON

NORTH TUSTIN

HUNTINGTON BEACH

COSTA MESA

DOWNEY

NORWALKLA MIRADA

405

90

601072

60

LE

DRIVE TIMES


0-10 Minutes

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18111 Von Karman Ave., Suite 1000 / Irvine, CA 92612 / cushmanwakefield.com

View Site Specific COVID-19 Prevention Plan

©2020 Cushman & Wakefield. All rights reserved. The information contained in this communication is strictly confidential. This information has been obtained from sources believed to be reliable but has not been verified. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) REFERENCED HEREIN OR AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). ANY PROJECTIONS, OPINIONS OR ESTIMATES ARE SUBJECT TO UNCERTAINTY AND DO NOT SIGNIFY CURRENT OR FUTURE PROPERTY PERFORMANCE.

JOSEPH LISING

Lic. #01248258

[email protected]

+1 949 372 4896

MATTHEW GODMAN

Lic. #02080586

[email protected]

+1 949 372 489716 | 7961 VALLEY VIEW STREET, LA PALMA, CA

PROPERTY OVERVIEW

http://www.cushwakebayarea.com/covid/Site_Specific_COVID-19_Prevention_Plan.pdf

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