smart & final extra | porterville, ca€¦ · (1) smart & final: nyse: sfs / $4.57 billion...

SMART & FINAL EXTRA | PORTERVILLE, CA

Actual location

JOHN GLASS / Executive Managing Director (415) 625-2114 / [email protected]

MATT LOPICCOLO / First Vice President (858) 546-4641 / [email protected]

N O N - E N D O R S E M E N T & D I S C L A I M E R N OT I C E

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LOCATION OVER VIE WS E C T I O N 3 Location Overview • Aerials

INVESTMENT OVER VIE WS E C T I O N 2 Investment Overview • Highlights • Rent RollRent Schedule • CAP Rate Growth Chart

MARKET OVERVIEWS E C T I O N 4 Demos • Porterville Overview

TA B L E O F CO N T E N T S

S m a r t & F i n a l E x t r a !1 4 1 9 W E S T O L I V E A V E N U E

P O R T E R V I L L E , C A L I F O R N I A 9 3 2 5 7

WWW.CBRE.COM

TENANT OVERVIEWS E C T I O N 1Smart & Final Stores, LLC

CBRE hereby advises all prospective purchasers of Net Leased property as follows:

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT LISTING AGENTS FOR MORE DETAILS.

© 2018 CBRE, Inc. All Rights Reserved.

$4.57 B 146 YEARSTOTAL REVENUE FOR 2017(1) SMART & FINAL HAS OPERATED

FOR OVER 146 YEARS

TENANTOVER VIE W

SMART & FINAL EXTRA! - PORTERVILLE, CA

(1) Lease is guaranteed by Smart & Final Stores, LLC, a subsidiary of Smart & Final, Inc.

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any par-ticular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE

ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

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T E N A N T O V E R V I E W - S M A R T & F I N A L S TO R E S , L LC ( 1 )

► SMART & FINAL: NYSE: SFS / $4.57 BILLION TOTAL REVENUE / $403

MILLION NET WORTH FOR 2017(1, 2)

► SALES FOR 2017 GREW 5.1% OVER 2016(1, 2)

► SMART & FINAL HAS BEEN IN BUSINESS FOR 146 YEARS

► SMART & FINAL OPERATES OVER 317 GROCERY AND FOODSERVICE

STORES UNDER THE SMART & FINAL, SMART & FINAL EXTRA!, AND

CASH AND CARRY BANNERS

► SMART & FINAL ADDED 14 NEW SMART & FINAL EXTRA! AND 4 NEW

CASH & CARRY STORES IN 2017

(1) Source: Smart & Final

(2) Lease is guaranteed by Smart & Final Stores, LLC, a subsidiary of Smart & Final, Inc.

“Smart & Final Extra!, one of the company’s newest store concepts, is designed to en-hance the household consumer’s shopping experience and also includes changes to ben-efit business customers. Smart & Final Extra! stores are much larger than a typical Smart & Final warehouse store and full of extra features. The stores carry a greatly expanded selection of products in key categories like produce, fresh meat, frozen foods, dairy, deli and grocery basics like cereal, yogurt, bread and snacks. Smart & Final Extra! combines the high quality fresh produce of a farmers market, the low prices of a discount grocer and the large club size products of a traditional club store. But you don’t need to buy in bulk when you shop at Smart & Final Extra! We also carry thousands of items in smaller, convenient sizes. In addition we have everything that small businesses, clubs and orga-nizations need on a daily basis.”Marisol Marks, Smart & Final

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NNNTHE MAJORITY OF LEASES ARE

DOUBLE-NET REQUIRING SIGNIFI-CANT LANDLORD RESPONSIBILITIES

INVESTMENTOVER VIE W


20 YEAR LEASETHE MAJORITY OF SMART & FINAL

LEASES ARE 15-YEAR TERMS



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I N V E S T M E N T O V E R V I E W

► RARE ABSOLUTE NNN LEASE - NO LANDLORD MAINTENANCE

RESPONSIBILITIES. MOST SMART & FINAL LEASES ARE DOUBLE NET

► NEW 20-YEAR LEASE WITH 7.5% RENT INCREASES EVERY 5 YEARS

DURING THE INITIAL TERM AND FOUR, FIVE-YEAR OPTION PERIODS

(MAJORITY OF NEW LEASES ARE 15-YEARS AND DOUBLE-NET)

► BRAND NEW CONSTRUCTION - RELOCATION OF EXISTING STORE

COMPLETED IN 2018

► ADDITIONAL LAND NEXT TO SUBJECT PROPERTY AVAILABLE FOR

SALE (SEE LISTING AGENTS FOR DETAILS)

► CORPORATE LEASE ENTITY: SMART & FINAL STORES, LLC(1)

► SMART & FINAL: NYSE: SFS / $4.57 BILLION TOTAL REVENUE 2017(1)

► PORTERVILLE SERVES AS A GATEWAY TO SEVERAL NATIONAL

PARKS INCLUDING SEQUOIA NATIONAL FOREST, GIANT SEQUOIA

NATIONAL MONUMENT, AND KINGS CANYON NATIONAL PARKS

(1) Lease is guaranteed by Smart & Final Stores, LLC, a subsidiary of Smart & Final, Inc.7 8

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O F F E R I N G H I G H L I G H T S

419 WEST OLIVE AVENUE, PORTERVILLE, CALIFORNIA 93257

O F F E R I N G P R I C E

$8,200,000C A P R AT E

5.35%Net Operating Income $438,774

Lease Type Absolute NNN

Lease Commencement June 2018

Lease Expiration Date June 2038

Year Built 2018(1)

Rentable Area 31,341 SF(1)

Lot Size _______ Acres(1)

Increases 7.5% Every 5 Years

Options (4) Five-Year Options

Tenant / Guarantor Smart & Final Stores, LLC

(1) Rentable Area, Lot Size, and Year Built are approximate. Buyer will need to verify the accuracy of these estimates during the Due Diligence process.

S M A R T & F I N A L E X T R A ! - P O R T E R V I L L E , C A L I F O R N I A

T E N A N T I N F O C U R R E N T R E N T I N C R E A S E S L E A S EL E A S E T E R M S

R E N T S C H E D U L E (2)

R E N T R O L L

RENT SCHEDULE Lease Years Annual Rent Rent per SF

Years 1 - 5 $438,774 $14.00

Years 6 - 10 $471,682 $15.05

Years 11 - 15 $507,058 $16.18

Years 16 - 20 $545,088 $17.39

1st Option $585,969 $18.70

2nd Option $629,917 $20.10

3rd Option $677,161 $21.61

4th Option $727,948 $23.23

C A P R AT E G R O W T H C H A R T (2)

(2) Warning: This is a projection only. It is based on the rent increases set forth in the lease. Buyer will need to verify this projection during their due diligence review.

SQUARE FEE T COMMENCEMENTTENANT EXPIRATIONANNUAL

BASE RENTINCREASES OPTIONS T YPE

NEX T

ESCALATIONRENTABLE AREA

31,341 SF (1) JUNE

2018$438,774

7.5% INCREASES

E VERY 5 YEARS

FOUR, 5-YEAR

RENE WAL

OPTIONS

ABSOLUTE

NNN

SMAR T & F INAL

STORES, LLC

JUNE

2038JUNE 2023

COMMENCEMENT

You are solely responsible for independently verifying the information in this Memorandum.ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

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LOCATIONOVERVIEW


CENTRAL LOCATIONSITUATED BETWEEN FRESNO AND BAKERSFIELD

165 MILES NORTH OF LOS ANGELES



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LO C AT I O N O V E R V I E W

GATEWAY TO SEVERAL NATIONAL PARKS Porterville is the gateway to the mountain and recreational areas of the

Sequoia National Forest, the Giant Sequoia National Monument and Kings

Canyon National Parks

VISALIA MSA LOCATION Visalia serves as the largest city and county seat of Tulare County, which is

home to over 450,000 residents

DIRECT STREET FRONTAGEThe property has frontage on Olive Avenue (25,592 VPD) with easy access to All

American City Highway / Highway 65 (24,500 VPD)

GREAT ACCESS AND VISIBILITYThe property has several points of ingress and egress for easy customer access

IN CLOSE PROXIMITY TO NATIONAL RETAILERSThe Smart & Final Extra! is located in the immediate area of a variety of retail

tenants including Planet Fitness, Dollar General, Sherwin Williams, AutoZone,

O’Reilly Auto Parts, Shell, Bank of of the Sierra, ITC, and NAPA Auto Parts

HARD CORNERLOCATION

VISALIAMSA

CENTRAL LOCATION BET WEEN FRESNO AND BAKERSFIELD

SURROUNDED BYA VARIETY OF

RETAIL TENANTS

S E L L E R I S A L S O O F F E R I N G T H E

N E I G H B O R I N G PA R C E L F O R S A L E .

S E E AG E N T S F O R D E TA I L S .

*Property lines are approximate and not to be relied on. Buyer must conduct their own due diligence to confirm these estimates.

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A E R I A L V I E W

*Property lines are approximate and not to be relied on. Buyer must conducttheir own due diligence to confirm these estimates.

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L A R G E LOT W I T H F O U R

P O I N T S O F I N G R E S S / E G R E S S

A E R I A L O V E R V I E W

*Property lines are approximate and not to be relied on. Buyer must conduct their own due diligence to confirm these estimates.

*Property lines are approximate and not to be relied on. Buyer must conducttheir own due diligence to confirm these estimates.

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MARKE TOVERVIEW


GATEWAY TOSEQUOIA NATIONAL PARK

LOCATED JUST WEST OF SEQUOIA NATIONAL PARK



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H O U S E H O L D I N CO M E

P O P U L AT I O N

YEAR 1 MILE 3 MILES 5 MILES

2021 ProjectionTotal Population

15,330 64,796 75,189

2016 CensusTotal Population

14,909 62,293 72,698

2010 CensusTotal Population

14,132 60,604 70,707

YEAR 2016 1 MILE 3 MILES 5 MILES

AVERAGE $54,529 $56,617 $56,675

MEDIAN $39,474 $40,460 $40,156

Source: Experian (2018). Buyer will need to conduct their own due diligence to verify infomration.21

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P O R T E R V I L L EPorterville is a city in the San Joaquin Valley, in Tulare County, California. The city is situated on the eastern edge of the San Joaquin Valley along the foothills of the Sierras, 17 miles off Highway 99, a primary north-south route. The city is approximately an hour from Fresno and Bakersfield and 165 miles north of Los Angeles. Since its incorporation in 1902, the city’s population has grown dramatically as it annexed nearby unincorporated areas. The city’s 2016 population was estimated at 61,613 with the county’s population at more than 450,000 residents. Porterville serves as a gateway to the vast mountain and recreational areas of the Sequoia National Forest, the Giant Sequoia National Monument and Kings Canyon National Parks.

Porterville is the trade and cultural center for more than 120,000 people. The economy is a mixture of agricultural business, light industry and commercial enterprise. Local factories produce a myriad of products such as electronic instruments, health products, light filters for movie studios, precision machinery, food products, and lumber. The city is also a gateway to the Sequoia National Forest where visitors and residents can have fun in the sun and the snow throughout the year. The park spans 404,064 acres and encompasses a vertical relief of nearly 13,000 feet. The park contains among its natural resources the highest point in the contiguous 48 United States, Mount Whitney, at 14,505 feet above sea level. The park is famous for its giant sequoia trees, including the General Sherman tree, the largest tree on Earth. The park is south of and contiguous with Kings Canyon National Park (461,901 acres).

Porterville’s charming downtown area offers many attractions such as boutique stores, antique shops, restaurants and a multicultural art center. Main Street is also home to numerous special events, such as the popular Iris Festival held each April and the Veterans Day/ Homecoming Parade that has been held on Veterans Day for more than 90 years. The Iris Festival is held in late April and draws more than 20,000 to the city. Porterville residents also enjoy several parks in the community, each with its own unique setting.

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

SMART & FINAL EXTRA - PORTERVILLE, CA

Matt LoPiccolo First Vice President (858) 546-4641 [email protected]

JOHN GLASS Executive Vice President (415) 625-2114 [email protected]

smart & final extra | porterville, ca€¦ · (1) smart & final: nyse: sfs / $4.57 billion...

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