for sale cap $4,000,000 desert gatewaimages4.loopnet.com/d2/eflcdbobufl266a8sfqxecp1... · desert...

Gateway Desert

4.55%

Cap

34300 Monterey Avenue, Palm Desert, CA 92211

For Sale $4,000,000

Five Tenant Retail

with High Volume

Starbucks Drive-Thru

5,880 SF 1.12 Ac.

2009-Built ADT 55,000+Cars Monterey Ave. &

Dinah Shore Drive

James G. Towers Office: 909-335-1735 Managing Director- Towers & Associates Mobile: 909-223-9328 Visit Us at: CA BRE# 01342640 E-Mail: [email protected] www.towersRE.com

Perfect Eyebrow

Swiss Donut

Interstate Batteries

Firehouse Subs

Starbucks Drive-Thru

Done Right

Investment REAL ESTATE

100%

Occupied

mailto:[email protected]

Desert Gateway – Palm Desert, CA

Towers & Associates – Jim Towers – 1447 Ford Street, Redlands, CA 92374 – Office 909-335-1735 – Cell 909-223-9328 – www.towersRE.com – CA Broker Lic. # 01342640 Page 1

PRICING DETAILS – Starbucks Drive-Thru

Address: 34300 Monterey Avenue, Palm Desert, CA 92211 APN: 694-090-017 Price: $4,000,000 Annual Net Operating Income: $181,791

*See Pro forma

Cap Rate: 4.55% Buildings: 1 Year Built: 2009 Building Size (SF): 5,880 Price per Square Foot: $680.27 Occupancy: 100% Tenants: Starbucks (Drive-Thru), Firehouse Subs, Interstate Batteries, Swiss Donut, & Perfect Eyebrow

http://www.towersre.com/



The Investment The Desert Gateway shopping center, located at 34300 Monterey Avenue in Palm Desert, California, consists of approximately 5,880 square feet of quality retail space in a single-story building. Constructed in 2009, this five-tenant, 100% occupied, triple-net leased investment features a high-volume Starbucks Coffee drive-thru restaurant as its anchor tenant. Starbucks renewed their lease on October 1, 2017 for a 10-year term, showing a strong commitment to this location. In addition to Starbucks, the center has an excellent tenant mix that includes Firehouse Subs, Interstate Batteries, Swiss Donut, and Perfect Eyebrow. The shopping center has a prominent location with good commercial exposure and

excellent ingress and egress on both Monterey Avenue and Dinah Shore Drive. The center is situated on a 1.12 acre pad site to the dominant retail power center anchored by a Sam’s Club, Walmart, and Kohl’s. The property is surrounded by a dense population base within master-planned residential communities and country clubs.

The Desert Gateway shopping center is an outstanding 1031 Exchange opportunity with a stable income and ease of management.




Rent Roll

Rentable SF Rent Monthly Annual Original Extension End % Bldg. Security Remaining Options to Renew

Suite Tenant (DBA) Per Lease Per Month PSF NNN PSF Increases Start Date Date Date Per Lease Deposit Comments

100 Interstate Batteries 1,300 $2,733.80 $2.10 $1,450.97 $1.12 2% 7/1/2013 4/1/2018 3/31/2023 22.11% None One (1) Sixty (60) month

101 Perfect Eyebrow 650 $1,105.00 $1.70 $728.00 $1.12 3% 12/15/2017 3/31/2023 11.05% $1,833.00 One (1) Sixty (60) month

102 Swiss Donut 800 $1,480.00 $1.85 $496.00 $0.62 * (1) 6/1/2011 6/1/2016 5/31/2021 13.61% $5,000.00 One (1) Sixty (60) month

Base Rent Option 1 = Fair Market

103 Firehouse Subs 1,412 $2,626.32 $1.86 $1,575.98 $1.12 0% 12/1/2014 11/1/2019 24.01% $3,925.36 Two (2) Sixty (60) months

Base Rent Option 1 = $2,767.52 / Mo.

Base Rent Option 2 = Fair Market

104 Starbucks 1,718 $7,726.83 $4.50 $1,771.00 $1.03 * (2) 9/11/2007 10/1/2017 9/30/2032 29.22% None Three (3) Sixty (60) months

10% increase every 5 years

Total Monthly 5,880 $15,671.95 $6,021.95

Annualized $188,063.40 $72,263.40

(1) NNN charge increases to $0.77 PSF in June 2019; $0.97 PSF June 2020.

(2) Increases 10% every 5 years.




Static Pro forma

Rentable SF Mo. Rent Mo. Rent PSF Annualized

Gross Projected Base Rent

Unit 100 - Interstate Batteries 1,300 $2,734 2.10$ 32,806$

Unit 101 - Perfect Eyebrow 650 $1,105 1.70$ 13,260$

Unit 102 - Swiss Donut 800 $1,480 1.85$ 17,760$

Unit 103 - Firehouse Subs 1,412 $2,626 1.86$ 31,516$

Unit 104 - Starbucks 1,718 $7,727 4.50$ 92,722$

Reimbursed NNN Expenses (Based on Actuals) $72,263

Subtotal Potential Gross Income 5,880 260,327$

Vacancy & Collection Loss 0.00% -$

EFFECTIVE GROSS INCOME: 260,327$

OPERATING EXPENSES PER SF % EGI TOTAL

Real Estate Taxes (2018 actual) $6.93 15.65% 40,752$

Insurance $0.68 1.53% 3,990$

Repairs & Maintenance $1.01 2.29% 5,967$

Common Utilities $2.15 4.85% 12,639$

External CAM (Association Fee) $1.28 2.88% 7,499$

Management Fee $1.22 2.77% 7,200$

Security / Fire Alarm / Misc. $0.08 0.19% 489$

Subtotal Reimbursable Expenses $13.36 30.17% 78,536$

TOTAL EXPENSES (78,536)$

NET INCOME 181,791$

STATIC PROFORMA - NET OPERATING INCOME




Tenant Profile – Starbucks

Corporation

Starbucks Corporation (Starbucks), is the world’s #1 specialty coffee retailer.

Incorporated on November 4, 1985, Starbucks is a roaster, marketer and retailer

of coffee. As of October 2, 2016, the Company operated in 75 countries. The

Company purchases and roasts coffees that it sells, along with handcrafted

coffee, tea and other beverages and a range of fresh food items, including snack

offerings through Company-operated stores. The company offers its products

under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulage, Ethos, Starbucks VIA,

Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Discoveries Iced Café Fabores

brand names.

Market Cap: $79.66 Billion

S & P Rating: A-

Revenue (2017): $22.3 Billion

Employees (2017): 277,000

Number of Stores (2018): 28,218




Tenant Profile – Firehouse Subs

Firehouse Subs is a national sandwich franchise with over 1,100 locations in 44 states and abroad. Firehouse Subs generated $715 million in system-wide revenue last year. Founded in 1994 by two firefighter brothers, the Florida-based brand has added more than 350 locations since 2015. This year Firehouse Subs earned a spot on Forbes’ 2018 ranking as the #4 best franchise to buy.

Tenant Profile – Interstate Batteries

Interstate Batteries is a privately owned company that markets automotive batteries through independent distributors. This independently owned and operated Palm Desert distributor features products for: cars and trucks; commercial trucks and equipment; marine; recreational vehicles; sealed lead-acid; lawn and garden; motorcycles and power sports; golf carts; household and electronics; mobile devices and chargers and jump starters.




Desert Gateway

34300 Monterey Ave.

Palm Desert, CA




Desert Gateway

34300 Monterey Ave.

Palm Desert


for sale cap $4,000,000 desert gatewaimages4.loopnet.com/d2/eflcdbobufl266a8sfqxecp1... · desert...

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