kohl's 8501 laurel canyon blvd, sun valley, ca · kohl’s 8501 laurel canyon blvd. sun...

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Kohl’s8 5 0 1 L a u r e l C a n y o n B l v d .

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E X C L U S I V E L Y L I S T E D B Y

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Kohl’s8 5 0 1 L a u r e l C a n y o n B l v d

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EL WARNER EVP & National [email protected] 949.873.0507MOB 858.752.3078LIC NO. 01890271 (CA)

DEVON [email protected] 949.432.4517MOB 310.808.3596LIC NO. 01981609 (CA)

KYLE MATTHEWSChairman & [email protected] NO. 01469842 (CA)

T A B L E O F C O N T E N T SASSET OVERVIEW PROPERTY DETAILS

AREA OVERVIEW

TENANT REPORT

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ASSETOVERVIEW

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OFFERING SUMMARY


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Matthews Real Estate Investment Services is pleased to present the fee

simple sale of Kohl’s, located in the city of Sun Valley, California. The property

is just off of the 5 Freeway and is situated on Laurel Canyon Boulevard. The

property benefits from its location in the San Fernando Valley within a densely-

populated submarket with strong demographics. This property is an excellent

opportunity for an investor to acquire a NNN investment grade tenant, 100%

leased to Kohl’s with no landlord responsibility. Kohl’s is shadow anchored

by a strong performing Ralph’s anchored shopping center, which brings in

additional consumers to the trade area. With strong rent growth each year,

this property is an ideal exchange candidate that provides both stability

and ease of management.


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7Kohl’s8 5 0 1 L a u r e l C a n y o n B l v d .

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• Kohl’s has strong volumes and is an investment grade tenant

• Shadow anchored by high-performing Ralph’s anchored center

• Kohl’s has 8 years remaining and is only paying $9.76 PSF

• Located in LA County

• ± 698,000 residents within a 5-mile radius

• Absolute NNN, no Landlord responsibility

• Attractive 1.2% annual increases in the base term and in option periods

• Located right off the Golden State Freeway (5 Freeway), which sees traffic counts of 200,000+ ADT

• Adjacent to Francis Polytechnic Senior High School and Byrd Middle School and near the Fernangeles Recreation Center

• Offered free and clear of debt

Investment Highlights


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FINANCIALS

T E N A N T S U M M A R Y

Tenant Trade Name Kohl's Department Stores, Inc.

Type of Ownership Fee Simple

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date September 23, 2005

Lease Expiration Date September 30, 2025

Term Remaining on Lease ±8 Years

Increases 1.2% Per Lease Year

Options Two (2), Five (5) Year Options

One (1), Four (4) Year and Six (6) Mos Option

A N N U A L I Z E D O P E R A T I N G D A T AM o n t h l y R e n t A n n u a l R e n t R e n t / S F C a p R a t e

10/1/2017 - 9/30/2018 $70,114 $841,369 $9.87 6.57%

10/1/2018 - 9/30/2019 $70,955 $851,465 $9.99 6.65%

10/1/2019 - 9/30/2020 $71,807 $861,683 $10.11 6.73%

10/1/2020 - 9/30/2021 $72,669 $872,023 $10.23 6.81%

10/1/2021 - 9/30/2022 $73,541 $882,487 $10.36 6.89%

10/1/2022 - 9/30/2023 $74,423 $893,077 $10.48 6.98%

10/1/2023 - 9/30/2024 $75,316 $903,794 $10.61 7.06%

10/1/2024 - 9/30/2025 $76,220 $914,639 $10.73 7.15%

Option 1 $77,135 $925,615 $10.86 7.23%

Option 2 $81,875 $982,501 $11.53 7.68%

Option 3 $86,907 $1,042,883 $12.24 8.15%

List PriceCap RateGross Leasable AreaLot SizeYear Built / Renovated

$12,800,0006.57%

± 85,212± 6.42

1979 / 2003

E X E C U T I V E S U M M A R Y


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L E A S E A B S T R A C T

Tenant Kohl's Department Stores, Inc., a Delaware Corporation

Land Size (AC) 6.42

Building Size (SF) 85,212

Beginning of 1st Year September 23, 2005

Expiration Date September 30, 2025

Lease Term (Base Lease) 240 Months

*'Remaining Lease Term (Base Lease) 96 Months

No. & Term of OptionsTwo (2), Five (5) Year Options

One (1), Four (4) Year and Six (6) Mos Option

Contract Rental Rate Total $/Yr.

10/1/2017 - 9/30/2018 $841,369

Escalations 1.2% Per Lease Year

Lessor Expenses None

Lessee ExpensesAll - Tenant assumes the full and sole responsibility for the condition, operation, repair, alteration,

improvement, replacement, maintenance and management of the Premises.

% Rent Clause: During the extension periods only, an amount equal to two percent (2%).

PROPERTYDETAILS

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P R O P E R T Y I N F O R M A T I O NProperty Name Kohl’s

Address 8501 Laurel Canyon Blvd

Location Sun Valley, CA 91352

Cross Street Roscoe Blvd

Square Footage (GLA) ± 85,212 SF

Land Area ± 6.42 Acres (279,655 SF)

APN(s) 2633-006-017

Year Built / Renovated 1979 / 2003

Type of Ownership Fee Simple

Zoning P. Los Angeles

Number of Stories 2

Parking Spaces ± 565

Parking Ratio 6.6 : 1,000 SF

PROPERTY DETAILS


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SURROUNDING TENANTS

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TRAFFIC COUNTSLaurel Canyon Blvd: ± 19,000 ADTRoscoe Blvd: ± 32,000 ADT

AREAOVERVIEW

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LOS ANGELES, CAHip and historic, the city of Los Angeles is a global city with a diverse economy that is driven by international trade, entertainment, aerospace, technology, petroleum, fashion, apparel, and tourism. It is the focal point of the larger Los Angeles metropolitan area and the Greater Los Angeles Area region.

Los Angeles is the largest manufacturing center in the western United States due to its geographic location. The contiguous ports of Los Angeles and Long Beach together comprise the fifth-busiest port in the world and the most significant port in the Western Hemisphere: It is vital to trade within the Pacific Rim. Overall, Los Angeles is teeming with career opportunities. The city is on the leading edge of several growth industries and is emerging as a leader in the expanding tech industry.

FORTUNE 500 COMPANIESOccidental Petroleum

Health Net

Reliance Steel & Aluminum

AECOM

CBRE

BUSIEST PORT IN THE WORLDHOME TO THE 5TH


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Known as the “Valley of the Stars”, Southern California’s San Fernando Valley encompasses the cities of Burbank, Calabasas, Glendale, Los Angeles, and San Fernando, among many others; About 80% of the San Fernando Valley is part of the city of Los Angeles. The valley is a special place, offering a small-community way of life alongside world-class business, commercial, employment and visitor opportunities.

Featuring a strong and well-diversified economy, the Valley is home to numerous large employers, including some 50,000 businesses employing over 700,000 workers, the most well-known of which are involved in motion pictures, recording, and television production as well as the medical and biotech industries.

SAN FERNANDO VALLEY

C o m p a n y N a m e C i t y

COMPANY HEADQUARTERS

Burbank

Burbank

North Hollywood

Glendale

Thousand Oaks

Woodland Hills

Glendale

Glendale

Westlake Village

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Walt Disney Co.

Warner Bros.

Universal Studios, Inc.

DreamWorks Animation SKG, Inc.

Amgen Inc.

Health Net Inc.

DineQuity Inc.

Public Storage Inc.

Dole Food Co.

Health Net


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SUN VALLEY, CA


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Situated at the base of the Verdugo Mountains, Sun Valley is a neighborhood in the San Fernando Valley region of Los Angeles. Known for its overall youthful and diverse population, Sun Valley is home to the Consulate-General of the Dominican Republic in the County of Los Angeles. The neighborhood is bordered on the northeast by Shadow Hills, on the southeast by Burbank, on the south by North Hollywood and Valley Glen, on the west by Panorama City and on the northwest by Pacoima, Hansen Dam, and Lake View Terrace, providing ample employment, shopping and dining opportunities for residents.

P R O P E R T Y D E M O G R A P H I C SP o p u l a t i o n 1 - M I L E 3 - M I L E 5 - M I L E

2022 Projection 24,316 248,523 727,905

2017 Estimate 23,338 239,462 698,445

Growth 2017 - 2022 4.19% 3.78% 4.22%

H o u s e h o l d s 1 - M I L E 3 - M I L E 5 - M I L E

2022 Projection 5,675 66,049 220,938

2017 Estimate 5,472 63,673 211,698

Growth 2017 - 2022 3.71% 3.73% 4.36%

I n c o m e 1 - M I L E 3 - M I L E 5 - M I L E

2017 Est. Average Household Income $66,094 $65,990 $70,824

DISTANCE TO:

NORTH HOLLYWOOD4.0 MILES

BOB HOPE AIRPORT6.2 MILES

BURBANK8.0 MILES

DOWNTOWN LOS ANGELES18.2 MILES


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THE NEIGHBORHOODSun Valley has three recreation centers, one of which is a historic site, and thirteen public schools, including John H. Francis Polytechnic High School and Sun Valley High School and four private schools. 8501 Laurel Canyon Boulevard is within walking distance of two of the neighborhood’s schools and one of the recreation centers.

METROLINKServed by Metrolink’s Antelope Valley Line from Los Angeles Union Station to Lancaster, the Sun Valley Metrolink Station is a Metrolink rail station in the community of Sun Valley.

The rail station is about 2.0 miles from the subject property, a 7 minute drive.

Pacifica Hospital of the Valley is a major healthcare provider to adults and children in the San Fernando Valley. Offering a full range of inpatient and outpatient services, the hospital is a 231-bed acute care facility.

28 WEEKDAY TRAINS / 12 WEEKEND TRAINS

FERNANGLES RECREATION CENTER0.4 MILES - 8 MINUTES WALKING DISTANCE

FRANCIS POLYTECHNIC SENIOR HIGH 0.6 MILES - 12 MINUTES WALKING DISTANCE

BYRD MIDDLE SCHOOL0.9 MILES - 17 MINUTES WALKING DISTANCE

PACIFICA HOSPITAL OF THE VALLEY

TENANTREPORT

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kohl’s Overview

T E N A N T R E P O R TParent Company Trade Name Kohl’s Department Store, Inc. (NYSE: KSS)

Ownership Public

Credit Rating (S&P’s) BBB-

Revenue $19.023 B

No. of Locations ± 1,162

No. of Employees ± 32,000

Headquartered Menomonee Falls, WI

Website www.kohls.com

Year Founded 1962

Kohl’s operates about 1,162 discount department stores in 49 states. Nearly half of its stores are in the Midwest and West, where Kohl’s continues to grow while rapidly expanding into other markets. Moderately priced name-brand and private-label apparel, shoes, accessories, and housewares are sold through centrally located cash registers, designed to speed checkout and keep staff costs down. Kohl’s competes with discount and mid-level department stores. Merchandising relationships allow Kohl’s to carry top brands (NIKE, Levi’s, OshKosh B’Gosh) not typically available to discounters. To support its brick-and-mortar and online businesses, Wisconsin-based Kohl’s maintains a network of more than a dozen distribution centers nationwide. During the important holiday selling season, the apparel chain ships selected online orders from its store distribution centers rather than its e-commerce fulfillment centers. The company also operates design studios in New York City and in Santa Monica, California.


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C O N F I D E N T I A L I T Y & D I S C L A I M E R S T A T E M E N T :

This Offering Memorandum contains select information pertaining to the business and affairs of Kohl’s located at 8501 Laurel Canyon Blvd, Sun Valley, CA 91352 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to

the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketingor sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

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E X C L U S I V E L Y L I S T E D B YEL WARNER EVP & National [email protected] 949.873.0507MOB 858.752.3078LIC NO. 01890271 (CA)

DEVON [email protected] 949.432.4517MOB 310.808.3596LIC NO. 01981609 (CA)

KYLE MATTHEWSChairman & [email protected] NO. 01469842 (CA)

kohl's 8501 laurel canyon blvd, sun valley, ca · kohl’s 8501 laurel canyon blvd. sun...

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