single tenant nnn investment opportunity · 8142-027-033, 8142-027-035, 8142-027-032, 8142-027-034....

SINGLE TENANT NNN INVESTMENT OPPORTUNITY“THE QUAD” AT WHITTIER - 13553 WHITTIER BLVD, WHITTIER CA

ACTUAL SITE

2 ACTUAL SITE SRS NATIONAL NET LEASE GROUP

EXCLUSIVELY MARKETED BYMICHAEL WALSETHSENIOR VICE PRESIDENTSRS NATIONAL NET LEASE GROUP610 Newport Center Drive, Suite 1500Newport Beach, CA 92660

DL: 949.270.8201 | M: 949.400.4261

[email protected] | CA License No. 01405081

KAI YOUNGMANSENIOR ASSOCIATESRS NATIONAL NET LEASE GROUP610 Newport Center Drive, Suite 1500Newport Beach, CA 92660

DL: 949.270.8227 | M: 949.395.1545


Broker of Record: Garrett Colburn – CA License #01416734

LOGAN FAZAKERLEYSENIOR ASSOCIATESRS NATIONAL NET LEASE GROUP610 Newport Center Drive, Suite 1500Newport Beach, CA 92660

DL: 949.270.8228 | M: 949.343.9587


3 ACTUAL SITE

CONTENTS

8PROPERTY OVERVIEW

AERIALS | SITE PLAN | LOCATION MAP

17FINANCIALS

RENT ROLL | BRAND PROFILE

5INVESTMENT SUMMARY

OFFERING SUMMARY | INVESTMENT HIGHLIGHTS

15AREA OVERVIEW

DEMOGRAPHICS

SRS NATIONAL NET LEASE GROUP

5 ACTUAL SITE

INVESTMENT SUMMARY

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land and building) in a NNN leased, corporate guaranteed, newly renovated, Sleep Number, investment property located in Whittier, CA (Los Angeles MSA). The tenant, Select Comfort Retail Co., recently signed a brand new 7 year lease with 2 (5-year) options to extend. The lease features 10% rental increases at the beginning of each option period, growing NOI and hedging against inflation. The lease is corporate guaranteed and is NNN, an ideal investment for a passive investor. Sleep Number (NASDAQ: SNBR) is an industry leading mattress company with over 570 stores located in all 50 states. The company saw extremely positive results for 2018 with fourth quarter net sales growing 13% to $412 million, and full-year net sales up 6% to a record $1.53 billion. Sleep Number has also invested $46 million in capital expenditures and a total of $481 million into the brand over the past six years, demonstrating their commitment toward steady and everlasting growth.

The Sleep Number property is strategically located at the signalized, hard corner intersection of Central Ave. and Whittier Blvd with 45,500 combined vehicles passing by daily. The asset has excellent visibility and access along Whittier Blvd., which serves as the primary retail and commuter thoroughfare for the city of Whittier. The site is also situated directly across from the 432,000 SF Quad at Whittier shopping center anchored by T.J. Maxx, Vallarta Supermarket, and Burlington, promoting crossover traffic to the subject property. Other nearby national/credit tenants include The Home Depot, Ross Dress for Less, Marshalls, Old Navy, Petco, Grocery Outlet, Walgreens, Rite Aid, Michaels, and more, further increasing consumer draw to the trade area. Moreover, the site is less than 2 miles east of PIH Health, a premier medical facility serving as the largest employer in Whittier with 548 beds and 22 medical offices. The 5-mile trade area is supported by a dense population of over 459,000 residents with a healthy average household income of $91,800.


6 ACTUAL SITE

OFFERING SUMMARY


PROPERTY SPECIFICATIONS

Pricing: $3,195,000

Net Operating Income: $160,272

Cap Rate: 5.02%

Guaranty: Corporate

Tenant: Select Comfort Retail Co.

Lease Type: NNN

OFFERING

Rentable Area: 4,452 SF

Land Area 0.46 Acres

Property Address: 13553 Whittier Boulevard, Whittier, CA 90605

Year Built / Renovated: 1952 / 2018

Parcel Number: 8142-027-033, 8142-027-035, 8142-027-032, 8142-027-034

Ownership: Fee Simple (Land and Building)

7 ACTUAL SITE

INVESTMENT HIGHLIGHTS


New 7-Year Lease | Corporate Guaranteed | Options to Extend

• Sleep Number corporate guaranteed lease• The tenant recently signed a brand new 7 year

lease with 2 (5-year) option periods to extend• Features 10% rental increases at the beginning

of each option period, generating NOI growth

NNN Lease | Fee Simple • Tenant pays for CAM, taxes, and insurance• Ideal investment for a passive investor

Rare Los Angeles County Retail Opportunity | Strong Demographics in 5-Mile Trade Area

• Dense, infill Los Angeles trade area with major barriers for new development

• More than 458,400 residents and over 155,800 employees support the trade area

• $91,803 average household income

Signalized, Hard Corner Intersection | Major Thoroughfare | Excellent Visibility & Access

• Situated at the signalized, hard corner intersection of Central Ave. and Whittier Blvd. with 45,500 vehicles passing by daily

• Whitter Blvd serves as the primary commuter and retail thoroughfare for the city of Whittier

• The asset has excellent visibility and access with multiple points of ingress/egress

Directly Across From the Quad at Whittier (432,000 SF) | Primary Retail Corridor

• Ideally located directly across from the 432,000 SF Quad at Whittier anchored by T.J. Maxx, Vallarta Supermarket, and Burlington

• Other nearby national/credit tenants include The Home Depot, Ross Dress for Less, Marshalls, Old Navy, Petco, Grocery Outlet, Walgreens, Rite Aid, Michaels, and more

Industry Leading Brand | Publicly Traded (NASDAQ: SNBR) | $1.53B Revenue

• Sleep Number, a publicly traded tenant (NASDAQ: SNBR), is an industry leading mattress company with over 570 stores located in all 50 states

• Saw extremely positive results last year with fourth quarter net sales growing 13% to $412M

• Full-year net sales up 6% to a record $1.53B

Close Proximity to PIH Health Center (548 Beds) | Largest Employer in Whittier

• Sleep Number is less than 2 miles east of PIH Health Center, a top-notch medical facility with 548 beds and 22 medical offices

• PIH Health is the largest employer in Whittier

8

PROPERTY OVERVIEW

Whittier Boulevard/ State Highway 72 1 Access Point(s)

Central Avenue 1 Access Point(s)

4,452 SF

Improvements

There are approximately 19 parking spaces

on the owned parcel.

The parking ratio is approximately 4.26 stalls per 1,000 SF

of leasable area.

Parking

Parcel Number: 8142-027-033, 8142-027-035, 8142-027-032, 8142-027-034

Acres: 0.46

Square Feet: 20,03 SF

Parcel

WHC2*

Access Zoning


PARCEL MAP

1952

Year Built

Whittier Boulevard/ State Highway 72

45,500 Cars Per Day

Painter Ave.20,300 Cars Per Day

Traffic Counts

ACTUAL SITE

GATEWAY PLAZA

LAUREL ELEMENTARY SCHOOL

SIERRA VISTA HIGH SCHOOL


WHITTIER BLVD.

CARS PER DAY45,500

CENTRAL AVE.

QUAD AT WHITTIER(432,000 SF)

WHITTIER MARKETPLACE

PIH HEALTH(548 BEDS)

WHITTIER HIGH SCHOOL


WHI

TTIE

R BL

VD.

CARS PER DAY45,500

PAINTER AVE. CARS PER DAY20,300

QUAD AT WHITTIER

CENTRAL AVE.

LYDIA JACKSON ELEMENTARY

SCHOOL

EVERGREEN ELEMENTARY

SCHOOL

LAUREL ELEMENTARY

SCHOOL

OCEAN VIEW ELEMENTARY

SCHOOL

PAIN

TER

AVE. CARS PER DAY

20,300

CARS PER DAY45,500


WHITTIER BLVD. / STATE HIGHWAY 72

12 ARTIST RENDERING SRS NATIONAL NET LEASE GROUP

CARS PER DAY45,500

JACKSON ST.

WHITTIER BLVD.

CENT

RAL A

VE.

14 ACTUAL SITE

LOCATION MAP

2018 ESTIMATED POPULATION1 Mile ..................................................... 32,064

3 Mile ................................................... 167,815

5 Mile ................................................... 458,404

2018 AVERAGE HOUSEHOLD INCOME1 Mile ................................................... $83,511

3 Mile ................................................... $89,909

5 Mile ................................................... $91,803

2018 ESTIMATED TOTAL EMPLOYEES1 Mile ....................................................... 9,117

3 Mile ..................................................... 60,037

5 Mile ................................................... 155,860


LOS ANGELES32 Min 20 miles

WHITTIER

15

AREA OVERVIEWWHITTIER, CALIFORNIAWhittier is located in Los Angeles County, about 12 miles southeast of the City of Los Angeles. Whittier, incorporated in 1898, covers 14.8 square miles and has an estimated population of 88,341 residents. The City of Whittier is centrally located to all of Southern California. Easily accessible through the 605 Freeway, between the 60 and the 5 Freeways, Whittier borders Orange County on the east. Its proximity to Downtown Los Angeles and Orange County makes Whittier a desirable place to locate. Disneyland, mountains, beach and desert are a short drive away.

Whittier’s strong sense of history and vision for the future has made it an upscale and dynamic residential community. Throughout the years, the City of Whittier has striven to provide a healthy and safe community and a well-maintained infrastructure enhanced by planned patterns of growth and development. Through a balance of economic, social, political, cultural and recreational opportunities, the City Council encourages an atmosphere conducive to community spirit and active participation in the affairs and progress of the community. Such efforts have been made to ensure a visually pleasing community in which the City’s identity and character are preserved and enhanced. The official flower of the City is the Friendship Rose.

Businesses and industries in the area include 374 professional services, 868 retail stores, 202 family-type restaurants, 36 manufacturing plants, 8 hotels and motels, 2 new automobile dealerships and over 249 specialty shops and boutiques, predominantly located in Uptown Whittier, the Quad shopping mall, as well as the Whittwood Town Center.

The City of Whittier offers distinct shopping districts: Whittier Marketplace, Whittwood Town Center, The Quad, Home Depot Shopping Center, and the Historic Uptown Whittier. Whittier is proud of its healthy mix of nationally recognized restaurants, retail and independent entrepreneurs. Some of the businesses in the City are: Target, Starbucks, Cost Plus World Market, JCPenney, Black Angus Steakhouse, Sears, Radisson Hotel, Burlington Coat Factory, Old Navy, Michaels, Johnny Carino’s, Presbyterian Intercommunity Hospital, Toyota of Whittier, Baja Fresh Mexican Grill, PetSmart, Trader Joe’s, Color Me Mine, Panera Bread, Coffee Bean & Tea Leaf, Staples, The Home Depot and Community Honda.

Whittier’s Redevelopment Agency has numerous projects underway to revitalize the community. This includes a $7 million project near the historic Hoover Hotel. The city still waits to attract more well-known businesses and open new residential town homes with the revival of its Uptown district. In addition, the agency is working on developing a 480-acre (1.9 km2) project area near Whittier Blvd. The master plan was adopted in June 2005 by the City Council.

The City of Whittier was selected as the Most Business Friendly City in Los Angeles County by the Los Angeles County Economic Development Corporation in November 2012. Whittier was also ranked in the “2014 Top 100 Most Livable Cities” in the entire United States. After reviewing over 1,700 cities across the nation on independent data points, the City of Whittier is among the best, according to Livability.com. Additionally, Whittier has twice been selected by the National Civic League as a finalist for the nationwide All-America City Award. Whittier is indeed a great place to live, thanks to the local school districts, the business community, nonprofit and service organizations, and the residents, who are the reason that Whittier remains such a great place to live, work and shop.


16

AREA DEMOGRAPHICS

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2018 Estimated Population 32,064 167,815 458,404

2023 Projected Population 32,828 170,963 467,187

2010 Census Population 31,166 161,945 442,568

Projected Annual Growth 2018 to 2023 0.47% 0.37% 0.38%

Historical Annual Growth 2010 to 2018 0.34% 0.43% 0.43%

2018 Estimated Households 9,930 49,700 132,966

2023 Projected Households 10,111 50,379 134,825

2010 Census Households 9,771 48,273 129,547

Projected Annual Growth 2018 to 2023 0.36% 0.27% 0.28%

Historical Annual Growth 2010 to 2018 0.20% 0.35% 0.32%

2018 Estimated White 79.99% 73.44% 59.20%

2018 Estimated Black or African American 1.24% 1.52% 1.85%

2018 Estimated Asian or Pacific Islander 2.97% 4.40% 9.57%

2018 Estimated American Indian or Native Alaskan 1.41% 1.27% 1.08%

2018 Estimated Other Races 29.76% 28.36% 25.77%

2018 Estimated Hispanic 75.58% 74.53% 69.44%

2018 Estimated Average Household Income $83,511 $89,909 $91,803

2018 Estimated Median Household Income $65,146 $68,481 $71,082

2018 Estimated Per Capita Income $26,284 $27,159 $27,199

2018 Estimated Total Businesses 781 5,100 11,973

2018 Estimated Total Employees 9,117 60,037 155,860


17 ACTUAL SITE

RENT ROLLLEASE TERM RENTAL RATES

TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS

Select Comfort Retail Co. 4,452 Jun 2018 Jun 2025 Current - $13,356 $3.00 $160,272 $36.00 NNN* 2 (5-Year)

(Corporate Guaranty) 10% Incr. at beg.

of each option

(1) Landlord responsible for roof, structure, parking lot (covered by Landlord warranty).


FINANCIAL INFORMATION

Price: $3,195,000

Net Operating Income: $160,272

Cap Rate: 5.02%

Guaranty: Corporate

PROPERTY SPECIFICATIONS

Year Built/Renovated: 1952/2018

Rentable Area: 4,452 SF

Land Area: 0.46 Acres

Address: 13553 Whittier Boulevard, Whittier, CA

90605

18 ACTUAL SITE

BRAND PROFILE

SLEEP NUMBERThe leader in sleep innovation, Sleep Number delivers proven, quality sleep through effortless, adjustable comfort and biometric sleep tracking. Sleep Number’s revolutionary 360 smart bed and proprietary SleepIQ technology platforms are proving the connection between sleep and well-being. With one of the most comprehensive databases of biometric consumer sleep data and ranked #1 in J.D. Power’s 2018 Mattress Satisfaction Report, Sleep Number is improving lives by individualizing sleep experiences. And with a commitment to improving the well-being of over one million youth by 2025, Sleep Number is redefining the future of health and wellness – for everyone.


Company Type: Public (NASDAQ: SNBR) 2018 Employees: 569 2018 Revenue: $1.53 Billion

2018 Net Income: $69.54 Million 2018 Total Assets: $500 Million

YTD STOCK CHART

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are pro-vided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive sub-market conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

*STATISTICS ARE FOR 2017

1000+PROPERTIES CURRENTLY REPRESENTED

600+CLIENTS REPRESENTED IN 2016

$2.6B*TRANSACTION VALUE

20+OFFICES

250+BROKERS, PROFESSIONALS, AND STAFF

#1LARGEST REAL ESTATE FIRM

EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA

single tenant nnn investment opportunity · 8142-027-033, 8142-027-035, 8142-027-032, 8142-027-034....

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