sport west covina parkway covina west covina, ca€¦ · healthcare urgent care promenade...

W. CAMERON AVE

W. COVINA PKWY (21,000 CPD)

W. PACIFIC AVE

S. SUNSET AVE

N. SUNSET AVE

S. VINCENT AVE

N. VINCENT AVEBADILLO ST

N. AZUSA AVE

484,000 C

ARS PER D

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COVINA

LAFAYETTE PARCAPARTMENTS

CALIFORNIA DEPT OF TAX & FEE ADMINISTRATION

WEST HAVEN HEALTH-CARE CENTER SUN CLINICAL

LABORATORIESWEST COVINA

FIRE DEPT

WEST COVINAPUBLIC WORKS

GLOBALENVIRONMENTAL

FIRST FINANCIALCORPORATE CTR

WEST COVINACREDIT UNION

• SYLVAN LEARNING CTR• WATER QUALITY AUTORITY• VOLUNTEERS OF AMERICA• SAN GABRIEL VALLEY DRIVER

WEST COVINAMEDICAL CENTER

MY SELF STORAGE SPACE

CENTRELAKEIMAGING

EAST COUNTY REGIONAL OFFICES

WEST COVINALIBRARY

WEST COVINACOURT HOUSE

WEST COVINACITY HALL

WEST COVINAPOLICE DEPT

LAKESIDE COMMUNITYHEALTHCARE URGENT

CARE

PROMENADEAPARTMENTS

AT THE LAKES

MARKETPLACE AT THE LAKES

US SOCIAL SECURITY ADMINISTRATION

CAMERONELEMENTARY SCHOOL

WEST COVINAHIGH SCHOOL

COVINAHIGH SCHOOL

1530West Covina Parkway

West Covina, CA

OFFERED AT: $22,451,933 | 6% CAP

SPORT

EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEWTENANT OVERVIEW

24 HOUR FITNESS | West Covina, CA | 2

TABLE OF CONTENTS

4 Executive Summary5 Investment Highlights6 Lease Summary & Rent Overview7 Lease Abstract

EXECUTIVE SUMMARY

9 Location Maps10 Site Plan11 Property Photos13 Aerials

PROPERTY INFORMATION

21 West Covina Overview22 Los Angeles County Overview23 Demographics

Confidentiality Agreement & Disclosures

AREA OVERVIEW

Color Scheme

Fonts

GOTHAM/ BLACKGOTHAM/ MEDIUMGOTHAM/ LIGHT

CMYK C:0 / M:100 / Y:65 / K:47

RGB R:145 / G:0 / B:40

CMYK C:0 / M:0 / Y:0 / K65

RGB R:119 / G:120 / B:123

RYAN BARRPrincipal

[email protected]

Lic#01338994

RYAN BENNETTPrincipal

[email protected]

Lic#01826517

EXCLUSIVELY REPRESENTED BY

19 About 24 Hour Fitness

TENANT OVERVIEW

EXECUTIVE SUMMARY

WEST COVINA, CA


SPORT



PROPERTY OVERVIEWAddress: 1530 West Covina Pkwy

West Covina, CA 91790Property Size: Approx 37,500 Sq. Ft.Land Size: 1.56 Acres

Ownership: Fee Simple (Land, Building & Parking Garage)

Year Built: 1962 / Renovated 2001

Parking: 3-Level Parking Garage - 257 Spaces(240 Garage, 17 Surface Spaces)

INVESTMENT HIGHLIGHTSOffering Price: $22,451,933Net Operating Income: $1,347,116Cap Rate: 6%Price/SF: $598Lease Type: Triple-Net (NNN)

Lee & Associates is pleased to exclusively offer for sale the fee simple interest (land & building) in a 24-Hour Fitness Sport property located in the greater Los Angeles area of West Covina, CA (the “Property”). Built in 1962 and renovated in 2001, the Property consists of a 37,500-square-foot fitness facility and 3-story parking garage that sit on an approximately 1.56-acre parcel. The site features abundant parking with 240 spaces in the adjacent 3-level parking garage as well as 17 surface spaces. This parking structure is included in the sale of the property and provides customers with easy access in and out of the facility, which is critical in such a dense area with limited parking.

The building is leased on a corporate guaranty to 24 Hour Fitness USA, Inc., the largest privately owned and operated fitness chain in the world, with nearly 4 million members within 426 clubs across 17 U.S. states. Founded in 1983, 24 Hour Fitness boasted a revenue of $1.4 Billion in 2017 and currently employs more than 18,000 people across the country. 24 Hour Fitness currently has a credit rating of B2 from Moody’s.

With E-Commerce drastically changing the face of retail sales today, this investment provides an investor with an internet resistant tenant concept where the service provided can only be provided “on-site”, thus always requiring a brick & mortar location for operations.

There are approximately 9 years remaining on the 26-year triple-net (NNN) lease, which features 11% rent increases every 5 years in both the Primary term and (3) 5-year Option periods. 24 Hour Fitness is showing a clear commitment to this site by spending a large sum of money to completely renovate the pool, jacuzzi, sauna, steam room, and both the men’s and women’s locker rooms (including the bathrooms). The tenant also replaced the entire roof membrane in 2016.

The site is located within a dense infill location of the City of West Covina, just 19 miles East of Downtown Los Angeles. There are approximately 525,000 people that live within a 5-mile radius of the subject property with an average household income over $85,000, lending well to the tenant’s concept and supporting its continued success.

The subject property is ideally located just off the Interstate 10 exit/entrance along W. Covina Pkwy, which is a main retail/commuter corridor to/from Interstate 10 (484,000 CPD). This location offers excellent visibility & signage to roughly 21,000 cars per day and offers multiple in/out access points into the property. It is located across the street from City offices including City Hall, the police department, and the Los Angeles County Court House, as well as nearby medical and financial offices, providing a strong customer draw to the facility.

The property lies within a strong retail trade area and is only a couple of blocks from Plaza West Covina, a 1.2 million square foot regional mall anchored by Macy’s, JCPenney, Sears, Best Buy, the newly opened XXI Forever flagship store, and Nordstrom Rack, as well as co-tenants including H&M, Sephora, M.A.C., Hollister, Express, American Eagle Outfitters, and more. The dense infill location has 525,000 people within a 5-mile radius of the subject property with an average HH income over $85,000, lending well to the tenant’s concept.

The property is located in the City of West Covina, in Los Angeles County. Strategically located at the heart of the San Gabriel Valley, West Covina is centrally positioned between the major metropolitan hubs of Los Angeles, San Bernardino, and Orange Counties, and has 4 miles of highly accessible and visible freeway frontage along Interstate 10. West Covina’s superior quality of life, distinguished school districts, and first-class dining and shopping venues make West Covina an enviable community. The City’s high standard of living is further enhanced by the wide assortment of community programs, stunning city parks, annual events and community facilities.

-- OFFERING SUMMARY --

• Offering Summary • Investment Highlights Lease Summary & Rent Schedule

484,000 CARS PER DAY

Lease Abstract



-- INVESTMENT HIGHLIGHTS --

• Investment Highlights •Offering Summary Lease Summary & Rent Schedule Lease Abstract

24 HOUR FITNESS USA INC (MOODY’S: B2): GLOBAL LEADER IN THE FITNESS INDUSTRY • $1.4 BILLION IN REVENUE (2017) • ROUGHLY 18,000 EMPLOYEESThe subject property is leased to 24 Hour Fitness USA, Inc. (Corporate), the largest privately owned and operated fitness chain in the world, with nearly 4 million members within 426 clubs across 17 U.S. states. Founded in 1983, 24 Hour Fitness boasted a revenue of $1.4 Billion in 2017 and currently employs more than 18,000 people across the country. 24 Hour Fitness currently has a credit rating of B2 from Moody’s.

STRONG CORPORATE LEASE GUARANTY • INTERNET RESISTANT TENANT CONCEPT • 16 YEAR SUCCESSFUL OPERATING HISTORYThe lease provides an investor with a strong corporate guaranty from 24 Hour Fitness United States, Inc. who has been successfully operating at this location since 2001 (16 years).

With E-Commerce drastically changing the face of retail sales today, this investment provides an investor with an internet resistant tenant concept where the service provided can only be provided “on-site”, thus always requiring a brick & mortar location for operations.

ONE OF 250 SPORT-MEMBERSHIP FACILITIES • NEAREST SPORT CLUB OVER 7 MILES AWAY • WIDE VARIETY OF CLASSES & EQUIPMENTThe Property is one of only 250 24 Hour Fitness Sport club locations. This location offers a wide variety of fitness equipment and classes such as personal & circuit training, sauna, steam room, whirlpool, indoor lap pool, Kids’ Club, and a Pro Shop. The nearest Sport club location is over 7 miles away.

CLEAR TENANT COMITMENT TO THE SITE • TENANT CURRENTLY COMPLETING EXTENSIVE REMODEL TO LOCKER ROOMS, POOL, SAUNAS, STEAM ROOM & BATHROOMS • TENANT REPLACED ENTIRE ROOF MEMBRANE IN 2016 24 Hour Fitness is showing a clear commitment to this site by spending a large sum of money to completely renovate the pool, jacuzzi, sauna, steam room, and both the men’s and women’s locker rooms (including the bathrooms). The tenant also replaced the entire roof membrane in 2016.

DENSE INFILL LOCATION (525,000 PEOPLE WITHIN 5-MILE RADIUS) • DESIRABLE DEMOGRAPHICS ($85,000 AHI) • LENDS WELL TO TENANT CONCEPT The site is located within a dense infill location of the City of West Covina, just 19 miles East of Downtown Los Angeles. There are approximately 525,000 people that live within a 5-mile radius of the subject property with an average household income over $85,000, lending well to the tenant’s concept and supporting its continued success.

LOCATED JUST FEET FROM INTERSTATE 10 EXIT W. COVINA PARKWAY (484,000 CPD) • MAJOR RETAIL/COMMUTER CORRIDOR (21,000 CPD) • EXCELLENT VISIBILITY & MULTIPLE ACCESS POINTS The subject property is ideally located just off the Interstate 10 exit/entrance along W. Covina Pkwy, which is a main retail/commuter corridor to/from Interstate 10 (484,000 CPD). This location offers excellent visibility & signage to roughly 21,000 cars per day and offers multiple in/out access points into the property.

DENSE RETAIL & OFFICE LOCATION • ABUNDANT PARKING: 240 SPACES (3-LEVEL GARAGE) & 17 SURFACE SPACES) • CONSISTENT CUSTOMER DRAW The 24 Hour Fitness facility features abundant parking with 240 spaces in the adjacent 3-level parking garage as well as 17 surface spaces. This provides the customer with easy access to and from the facility which is critical in such a dense area with limited parking.

The property is located across the street from City offices including City Hall, the police department, and the Los Angeles County Court House, as well as nearby medical and financial offices, providing a consistent draw to the facility which handles over 10,000 members per month.

BLOCKS FROM 1.2 MILLION SQ FT PLAZA WEST COVINA REGIONAL MALL • EXCELLENT RETAIL SYNERGY The property lies within a strong retail trade area and is only a couple of blocks from Plaza West Covina, a 1.2 million square foot regional mall anchored by Macy’s, JCPenney, Sears, Best Buy, the newly opened XXI Forever flagship store, and Nordstrom Rack, as well as co-tenants including H&M, Sephora, M.A.C., Hollister, Express, American Eagle Outfitters, and more.

LOCATED IN THE CITY OF WEST COVINA • PART OF GREATER LOS ANGELES AREA • SURGE IN REDEVELOPMENT The property is located in the City of West Covina, in Los Angeles County. Strategically located at the heart of the San Gabriel Valley, West Covina is centrally positioned between the major metropolitan hubs of Los Angeles, San Bernardino, and Orange Counties, and has 4 miles of highly accessible and visible freeway frontage along Interstate 10.

The City of West Covina’s Redevelopment Agency has completed numerous redevelopment projects ranging from City municipal buildings, office parks, shopping centers, and more. The Redevelopment Agency’s efforts have resulted in several major office buildings in the city, such as “The Lakes”, in addition to two new community shopping centers, freestanding retail developments, restaurants, residential projects, and the Auto Plaza.



-- LEASE SUMMARY --

LEASE INFORMATION

TENANT: 24 Hour Fitness USA, Inc.

GUARANTOR: 24 Hour Fitness United States, Inc. (Corporate)

BUILDING SIZE: 37,500 SF (Additional 3-Story Parking Garage)

LOT SIZE: 1.56 Acres

RENT COMMENCEMENT: May 1, 2001

LEASE EXPIRATION: April 30, 2027

BASE LEASE TERM: 26 Years

BASE TERM REMAINING: Approx. 9 Years

LEASE TYPE: Triple-Net (NNN)

LANDLORD RESPONSIBILITIES: Structural Components & Roof (Structure only, not membrane; Tenant replaced roof membrane in 2016)

RENEWAL OPTIONS: (3) 5-Year Options

ANNUAL RENT: $1,347,116

-- RENT SCHEDULE --

PRIMARY TERM

TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR

Years 16-20 5/1/2017 4/30/2022 $1,347,116.40 $112,259.70 $35.92

Years 21-26 5/1/2022 4/30/2027 $1,495,299.12 $124,608.26 $39.87

OPTION PERIODS - (4) 5-YEAR OPTIONS

TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR

Option 1 5/1/2027 4/30/2032 $1,659,781.22 $138,315.00 $44.26

Option 2 5/1/2032 4/30/2037 $1,842,357.84 $153,529.82 $49.13

Option 3 5/1/2037 4/30/2042 $2,045,017.20 $170,418.00 $54.53

Investment HighlightsOffering Summary • Lease Summary & Rent Schedule • Lease Abstract

EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW


TENANT OVERVIEW

-- LEASE ABSTRACT --

Net Lease: This Lease is intended to be “triple net” and, accordingly, all Rent shall be received by Landlord without deduction for any costs or expenses incurred by Tenant under this Lease in connection with the operation, maintenance, repair, management and ownership of the Premises.

Property Taxes:Tenant shall pay the Real Property Taxes on the Premises, to the extent such Property Taxes are attributable to the Premises during the Term of this Lease. Any tax or assessment covering a period which is not entirely included in the Term shall be prorated accordingly between Tenant and Landlord. Tenant shall pay Real Property Taxes directly to the taxing authority and furnish evidence of such payment to Landlord at least ten (10) days prior to the date when such taxes become delinquent.

Landlord Maintenance & Repairs:

Landlord shall, subject to the provisions of Article 12 and Article 13, maintain in good condition, repair and replace (when necessary) the existing structural components of the Premises, comprising the existing roof (structure only and not membrane), exterior walls, floor slabs, subfloors and foundations of the Premises, and the structural components of the parking structure. Landlord shall be solely responsible for all costs related to its obligations under this Section 9.1. Notwithstanding the foregoing, Landlord shall not be responsible for any such repairs to the extent they are necessitated by the negligence or actions of Tenant or its employees or members so that, for example, the cost of replacing or reinforcing the roof structure shall be the obligation of Tenant and not Landlord if due to an overweight replacement roof membrane installed by Tenant.

Tenant Maintenance & Repairs:

Subject to Landlord’s obligations under Section 9.1, Tenant shall, during the Term of this Lease, clean, maintain and repair the Premises (including the parking structure), including roof membrane, any alterations made by Tenant to the roof structure and/or the subfloor, floor and wall coverings and the windows and Tenant shall keep the Premises in good and sanitary order and condition, normal wear and tear excepted. In addition, Tenant shall repair, maintainn and replace (when necessary) fire sprinkler systems which service the Premises, and all gas, electric, water, telephone and sanitary or storm sewer systems of the Premises.

Insurance:

Property Insurance: Landlord shall obtain and keep in force during the Term of this Lease a policy or policies of insurance, with commercially reasonable deductible limits, covering loss or damage to the Premises and the Tenant Improvements at least in the amount of the full replacement cost thereof, and in no event less than the total amount required by Mortgagees, against all perils included within the classification of “special form” coverage (as such term is used in the insurance industry). Tenant shall reimburse Landlord the actual, commercially reasonable cost of Property insurance policies. Such insurance policies shall provide for payment of loss thereunder to Landlord or, at Landlord’s election, to the Mortgagees.

Tenant shall maintain in full force and effect at all times during the Term, at its sole cost and expense, for the protection of Tenant (with Landlord named as an additional insured), a policy of comprehensive general liability insurance with a minimum combined single limit of Three Million Dollars ($3,000,000). No more often than every five (5) years, Landlord may require Tenant to increase such minimum amount to an amount not to exceed the commercially reasonable amount for similar uses in similar buildings in West Covina. Tenant shall be permitted to carry the insurance required in this Lease under a blanket policy which also covers other locations of the Tenant, provided that the coverage afforded by reason of the use of such blanket policy shall not be reduced or diminished from the amount set forth in this Section 11.3.

Utilities:As part of the Tenant improvements, Tenant shall furnish to the Premises the initial installation of electricity, water, gas and sewer lines and equipment, and shall install separate meters for the utilities provided to the Premises, at Tenant’s sole expense, and Tenant shall pay all charges of the separately metered utilities during the Term of this Lease. If there is any disruption of utility service to the Premises, Tenant shall be solely responsible to restore such utility service.

Renewal Option:Tenant has three (3) successive options to extend the Term (the “Options”), each such extension to be for an additional period of five (5) years (the “Extension Terms”) on the same terms and condi-tions as set forth herein. Such exercise may be made only by written notice to be delivered to Landlord not less than one hundred and eighty (180) days, nor more than three hundred sixty (360) days, prior to the expiration of the initial Term of the Lease, or, if Tenant has extended the initial Term by an Extension Term, prior to the expiration of that Extension Term.

Estoppel Certificate: Tenant shall, within ten (10) days following written request by Landlord, execute and deliver to Landlord an estoppel certificate.

Exclusivity: During the Term, including any extensions, so long as Tenant is not in default hereunder beyond any applicable cure period and so long as Tenant has not ceased to operate for more than one hundred eighty (180) consecutive days, Landlord shall not use nor permit any “Proximate Space” (as defined below) to be used as a health and/or physical fitness club.

Investment HighlightsOffering Summary Lease Summary & Rent Schedule • Lease Abstract •


PROPERTY INFORMATION

WEST COVINA, CASPORT



TENANT OVERVIEW

-- LOCATION MAPS --

• Location Maps • AerialsProperty PhotosSite Plan

AT THE LAKES

-- NEARBY DESTINATIONS --

San Dimas 10.3 miles 16 minutesPasadena 20.5 miles 32 minutesOntario 19.2 miles 27 minutesLos Angeles 18.5 miles 29 minutesGlendale 27.9 miles 42 minutesSanta Monica 34.7 miles 45 minutesLAX 37.3 miles 40 minutesLong Beach 35.4 miles 45 minutesAnaheim 27.6 miles 40 minutes



TENANT OVERVIEW

-- SITE PLAN --

Location Maps AerialsProperty Photos• Site Plan •



TENANT OVERVIEW

-- EXTERIOR PHOTOS --

Front of Subject Property

Parking Garage Walkway to Garage from Street Property Frontage Along W. Covina Pkwy

Site PlanLocation Maps Aerials• Property Photos •



TENANT OVERVIEW

-- INTERIOR PHOTOS --

Site PlanLocation Maps Aerials• Property Photos •

Front Desk Ellyptical/Treadmill Machines

Weight Machines Indoor Lap Pool



TENANT OVERVIEW

-- OVERHEAD VIEW --

ACCESS

TOLU

CA

AV

E

• Aerials •


LATINO FAMILY INSTITUTE

ACCESS

ACCESS

ACCESS

CALIFORNIA DEPT OF TAX & FEE

ADMINISTRATION

CERVANTES & DONOSOATTORNEYS AT LAW


WEST COVINALIBRARY


Site PlanLocation Maps Property Photos



TENANT OVERVIEW

-- LOOKING NORTH --

W. CAMERON AVE

CENTRALELEMENTARY SCHOOL

SANTA FE DAMRECREATION AREA


W. PACIFIC AVE

S. SUNSET AVE


N. SUNSET AVE

BALDWIN PARK

AZUSA

VINCENT

BADILLO ST BADILLO ST

AZUSA C

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BALDWIN PARKHIGH SCHOOL

MONTE VISTAELEMENTARY SCHOOL

MAUNA LOAGARDEN APARTMENTS

WEST COVINASELF STORAGE

HUY FONG FOODS INC

SCHOLASTIC BOOK FAIRS

DECORE-ATIVESPECIALTIES

N. IRWINDALE AVE

BLUE SKYAVIATION

KEYDISTRIBUTORS

DIABLOWHEELS USA

REV WINERY &BREWERY CO



WEST COVINALIBRARY




WEST HAVEN HEALTH-CARE CENTER

LAKESIDE COMMUNITYHEALTHCARE URGENT CARE

SUN CLINICALLABORATORIES

WEST COVINAFIRE DEPTWEST COVINA

PUBLIC WORKS

GLOBALENVIRONMENTAL




WEST COVINAMEDICAL CENTERAMERICAN INCOME

LIFE INSURANCEASSOCIATED GENERAL

CONTRACTORS CENTRELAKEIMAGING

PROMENADEAPARTMENTS

PARK PLAZA ON MAINE

• Aerials •Site PlanLocation Maps Property Photos



TENANT OVERVIEW

-- LOOKING EAST --

INTER COMMUNITYHOSPITAL

CAL POLY POMONA

W. CAMERON AVE


W. PACIFIC AVE

S. SUNSET AVE

N. SUNSET AVE

S. VINCENT AVE

N. VINCENT AVEBADILLO ST

N. AZUSA AVEN. AZUSA AVE

E. CAMERON AVE

484,000 C

ARS PER D

AY

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ONTARIO

SAN DIMAS

MT SAN ANTONIOCOLLEGE

LAFAYETTE PARCAPARTMENTS


WEST HAVEN HEALTH-CARE CENTER SUN CLINICAL

LABORATORIESWEST COVINA

FIRE DEPT


GLOBALENVIRONMENTAL





MY SELF STORAGE SPACE

CENTRELAKEIMAGING


WEST COVINALIBRARY




LAKESIDE COMMUNITYHEALTHCARE URGENT

CARE

PROMENADEAPARTMENTS

AT THE LAKES

MARKETPLACE AT THE LAKES

US SOCIAL SECURITY ADMINISTRATION

CAMERONELEMENTARY SCHOOL

WEST COVINAHIGH SCHOOL

SOUTH HILLSCOUNTRY CLUB

COVINAHIGH SCHOOL




TENANT OVERVIEW

ORANGEWOOD ROLLER HOCKEY

PARK

-- LOOKING SOUTHWEST --

W. CAMERON AVE


S. SUNSET AVE

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N. HACIENDA BLVD

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MONTEBELLO

RIO HONDOCOLLEGE

CITY OF INDUSTRY AVOCADO HEIGHTS

TORREY PINESAPARTMENT HOMES

SUNSET PLAZA APARTMENTS

EDGEWOODHIGH SCHOOL


QUEEN OF THE VALLEYHOSPITAL

EDGEWOODHIGH SCHOOL

EMERALD CRESTTOWNHOMES

SUNSET PALMS


ADMINISTRATIONWEST COVINAFIRE DEPT






CENTRELAKEIMAGING

WEST COVINALIBRARYWEST COVINA

COURT HOUSE WEST COVINACITY HALL

PROMENADEAPARTMENTS

SUNSET SQUARE SHOPPING CTR

PUENTE AVE

BASSETT SENIORHIGH SCHOOL

TORCHMIDDLE SCHOOL

BASSETT

HACIENDA HILLS

• GOLDEN STATE FOODS• NRG INNOVATIONS• CLOSET WORLD• STRADA WHEELS• GOYA FOODS• FRONTLINE FREIGHT

• FRITO-LAY• BENTLEY MILLS• AMERICAN PAPER• DACOR• DC LOGISTICS• IKON MOTORSPORTS

• UNITED STATES POSTAL SERVICE• MERCURY PLASTICS• MINUTE MAN TRANSPORT• ROBERT H PETERSON CO• CACIQUE


SAN JOSECHARTER ACADEMY

EDGEWOOD ACADEMYELEMENTARY SCHOOL

BISHOP AMATMEMORIAL HIGH

SCHOOL




TENANT OVERVIEW

W. CAMERON AVE


S. SUNSET AVE

N. SUNSET AVE

S. ORANGE AVE


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EL MONTE

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MONTEBELLO

MAUNA LOAGARDEN APARTMENTS

ORANGEWOOD ROLLER HOCKEY

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QUEEN OF THE VALLEYHOSPITAL

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BASSETT SENIORHIGH SCHOOL

TORCHMIDDLE SCHOOL

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BISHOP AMATMEMORIAL HIGH

SCHOOL SAN JOSECHARTER ACADEMY


ADMINISTRATIONWEST COVINA

FIRE DEPT


KINDREDHOSPITAL

SIERRA VISTAHIGH SCHOOL

• ALPHA PRINTING & GRAPHICS• PHOENIX SATELLITE TV• ISOTECH PEST MANAGEMENT• PREMIERE CAREER COLLEGE• SCE FCU IRWINDALE BRANCH• BEYOND CELL INTERNATIONAL



GLOBALENVIRONMENTAL

-- LOOKING WEST --



TENANT OVERVIEW




• About 24 Hour Fitness •

-- ABOUT 24 HOUR FITNESS --

24 Hour Fitness Worldwide, Inc. is the largest privately owned and operated chain of fitness centers in the United States. As of March 31, 2017, the company operates 426 clubs serving approximately 4 million members across 13 states and 23 markets, predominantly in California, Texas and Colorado.

Founded in 1983, the company offers fitness solutions-personal training, partner training, and group exercise classes - and operates a nutritional supplement company, Apex Fitness Group. As the company name implies, the centers are open 24 hours a day, seven days a week. They come in five types of clubs:

“Active” - Basic fitness centers up to 25,000 square feet in size, offering cardio equipment, free weights and other weight training machines, as well as group exercise classes.

“Sport” - Somewhat larger center, ranging from 35,000 to 50,000 square feet in size, these clubs also include a basketball court and swimming pool.

“Super-Sport” - These clubs offer additional benefits such as massage, sauna, and steam rooms.

“Ultra-Sport” - These clubs are the largest in size at 100,00 square feet, and feature day spas, racquetball courts, rock climbing, and a running track, in addition to the “Super-Sport” offerings.

“Express” (NEW) - Smaller in size at 6,000 to 10,000 square feet, these clubs offer limited weight equipment, while emphasizing cardio equipment, group classes, and personal training.

-- ABOUT THE OWNERSHIP --

In 2014, 24 Hour Fitness was purchased by AEA Investors, a leader in the private equity industry; Ontario Teachers’ Pension Plan, Canada’s largest single-profession pension plan – and one of the world’s largest; and Fitness Capital Partners, a fund organized by Dean Bradley Osborne and Global Leisure Partners.

AEA Investors - (Founded in 1968) AEA Investors is one of the oldest private equity firms in the United States. The firm focuses on leveraged buyout, growth capital and mezzanine capital investments in manufacturing, service, distribution, consumer products and business service companies. The firm makes investments primarily in the United State and Europe although AEA will periodically invest in Asia as well. They are headquartered out of New York City, New York with offices also in Connecticut, London, Munich, Hong Kong and Shanghai and have assets totalling $6 billion.

Ontario Teacher’s Pension Plan - (Founded in 1989) OTPP is an independant organization responsible for administering defined-benefit pensions for school teachers in the Canadian Province of Ontario. They also invests the plan’s pension fund, and is one of the world’s largest institutional investors. The plan is jointly sponsored by the Government of Ontario and is headquartered out of Toronto, Ontario, Canada with total assets over $140 billion CAD.

Fitness Capital Partners organized fund by Dean Bradley Osborne - DBO Partners Is an investment banking firm with offices in San Francisco and New York City. They focus on leveraged buy-outs, mergers and acquisitions, restructuring, and equity capital raising services.

426 Clubs Across 13 States


AREA OVERVIEW




-- WEST COVINA OVERVIEW --

Strategically located at the heart of the San Gabriel Valley, West Covina is centrally positioned between the major metropolitan hubs of Los Angeles, San Bernardino, and Orange Counties, and has 4 miles of highly accessible and visible freeway frontage along Interstate 10 which carries over 484,000 vehicles daily.

The City’s centralized location in Southern California and its convenient access to major transportation avenues distinguishes West Covina as a prime location for businesses and residents. Additional freeways serving West Covina include Interstate 605, Interstate 210, State Hwy 60, State Hwy 57, and State Route 71. The City is within close proximity to the Port of Los Angeles and the Port of Long Beach and within 40 miles of four major airports: Ontario International, Burbank Airport, Los Angeles International, and John Wayne Airport.

West Covina’s superior quality of life is a contributing factor to the City’s growth. Its safe, quality residential neighborhoods, distinguished school districts, and first class dining and shopping venues make West Covina an enviable community. The area offers stunning panoramic views of the San Gabriel Mountains extensive open space, and The City’s high standard of living is further enhanced by the wide assortment of community programs, stunning city parks, annual events and community facilities.

PROACTIVE GOVERNMENT WITH A PROACTIVE ECONOMIC DEVELOPMENT DEPARTMENT

The City of West Covina cultivates an exceptional business-friendly environment. With a dedicated City Council, and a visionary City Manager, the City of West Covina formed the West Covina Community and Economic Development (the “CED”) which has become one of the most respected, aggressive and proactive redevelopment agencies in California.

West Covina offers excellent busines opportunities for companies in the area, with low permit fees, no utility tax, and an unparalleled business corridor along Interstate 10 with continued growth potential. The City was rated by Kosmont Associates “Cost of Doing Business Survey” as one of the low-cost cities in Los Angeles County to conduct business.

Los Angeles County Overview Demographics• West Covina Overview •

COMMUNITY DEVELOPMENT

The City is continuously expanding to serve the rapidly growing population as evidenced by the set up of commercial developments and residential communities. West Covina’s Redevelopment Agency has completed numerous redevelopment projects ranging from City municipal buildings, office parks, shopping centers, and more. The Redevelopment Agency’s efforts have resulted in several major office buildings in the city, such as “The Lakes”, in addition to two new community shopping centers, freestanding retail developments, restaurants, residential projects, and the Auto Plaza.

Community development and projects are responsible for the economic transformation of West Covina. Sportsplex Project has been a major boost to the City’s economy. It serves the community by generating revenue for the city. The project comprises of three different components:

• Commercial development component set up 300000 square feet of new high-quality commercial retail. The retail industry consists of specialty shops, restaurants, and a depot.

• The Big League Dreams sports park provides baseball and softball players the feeling that they are playing at a professional venue. Outside comemorates Cory Lidle a professional baseball player that grew up in West Covina. West Covina city is a baseball traditional city. The city has produced many icons in the professional baseball league. It can be because a lot of the city resources have been invested in promoting the sport. The big dream league sports park is one way in which the game has been advertised. It has boosted the talents of West Covina residents.

• The municipal golf course component provides some of the most attractive views of the public golf course in San Gabriel Valley.



-- LOS ANGELES COUNTY OVERVIEW --

• Los Angeles County Overview • DemographicsWest Covina Overview

Los Angeles County is one of California’s original 27 counties, and is the most populous county in the United States, with more than 10 million residents as of 2017. Its population is larger than that of 41 individual U.S. states. It is the third-largest metropolitan economy in the world, with a GDP of over $700 billion. The county is home to more than one-quarter of California residents and is one of the most ethically diverse counties in the U.S.

Most of the population of Los Angeles County is located in the south and southwest, with major population centers in the Los Angeles Basin, San Fernando Valley and San Gabriel Valley. Other population centers are found in the Santa Clarita Valley, Pomona Valley, Crescenta Valley and Antelope Valley.

The county is divided west-to-east by the San Gabriel Mountains, which are part of the Transverse Ranges of southern California, and are contained mostly within the Angeles National Forest.

Los Angeles County is commonly associated with the entertainment and digital media industry; all six major film studios—Paramount Pictures, 21st Century Fox, Sony, Warner Bros., Universal Pictures, and Walt Disney Studios—are located within the county. Numerous other major industries also define the economy of Los Angeles County, including international trade supported by the Port of Los Angeles and the Port of Long Beach, music recording and production, aerospace and defense, fashion, and professional services such as law, medicine, engineering and design services, financial services and more. High-tech sector employment within Los Angeles County is 368,500 workers, and manufacturing employment within Los Angeles County is 365,000 workers.

Source: Los Angeles Almanac (Based on 2016)

Company/Organization Name JobsCounty of Los Angeles 107,500Los Angeles Unified School District 90,800City of Los Angeles 49,500University of California Los Angeles 46,200Federal Govt (non-Defense) 45,000Kaiser Permanente 36,900State of California (non-education) 29,900University of Southern California 18,900Northrop Grumman Corp. 16,600Target Corp. 15,000

TOP 10 EMPLOYERS - LOS ANGELES COUNTY



Demographic Source: Applied Geographic Solutions 10/2017, TIGER Geography page 1 of 1©2018, Sites USA, Chandler, Arizona, 480-491-1112

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SUMMARY PROFILE2000-2010 Census, 2017 Estimates with 2022 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 34.0698/-117.9404RS1

1530 W Covina Pkwy1 mi radius 3 mi radius 5 mi radius

West Covina, CA 91790

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PU

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2017 Estimated Population 23,119 250,518 525,147

2022 Projected Population 23,406 253,547 531,519

2010 Census Population 22,236 245,844 517,177


Projected Annual Growth 2017 to 2022 0.2% 0.2% 0.2%

Historical Annual Growth 2000 to 2017 0.3% 0.2% 0.1%

2017 Median Age 35.8 34.9 35

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2017 Estimated Households 6,635 64,900 138,332

2022 Projected Households 6,883 67,291 143,453

2010 Census Households 6,275 62,663 134,104




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2017 Estimated White 46.6% 47.4% 46.3%

2017 Estimated Black or African American 3.8% 2.9% 2.9%

2017 Estimated Asian or Pacific Islander 17.8% 15.2% 18.0%

2017 Estimated American Indian or Native Alaskan 1.2% 1.0% 0.9%

2017 Estimated Other Races 30.6% 33.5% 31.8%

2017 Estimated Hispanic 61.6% 70.7% 67.1%

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E 2017 Estimated Average Household Income $85,660 $84,641 $85,580

2017 Estimated Median Household Income $72,842 $69,932 $68,284

2017 Estimated Per Capita Income $24,651 $21,970 $22,609

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2017 Estimated Elementary (Grade Level 0 to 8) 10.3% 15.8% 15.5%

2017 Estimated Some High School (Grade Level 9 to 11) 9.3% 11.0% 10.8%

2017 Estimated High School Graduate 28.7% 28.7% 27.4%

2017 Estimated Some College 22.2% 19.3% 19.0%

2017 Estimated Associates Degree Only 8.4% 6.9% 7.2%

2017 Estimated Bachelors Degree Only 16.1% 13.6% 14.7%

2017 Estimated Graduate Degree 5.1% 4.7% 5.4%

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S 2017 Estimated Total Businesses 1,264 5,532 14,681

2017 Estimated Total Employees 14,374 62,888 171,757

2017 Estimated Employee Population per Business 11.4 11.4 11.7

2017 Estimated Residential Population per Business 18.3 45.3 35.8BU

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Demographic Source: Applied Geographic Solutions 10/2017, TIGER Geography page 1 of 1©2018, Sites USA, Chandler, Arizona, 480-491-1112

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SUMMARY PROFILE2000-2010 Census, 2017 Estimates with 2022 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 34.0698/-117.9404RS1

1530 W Covina Pkwy1 mi radius 3 mi radius 5 mi radius

West Covina, CA 91790

PO

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2017 Estimated Population 23,119 250,518 525,147

2022 Projected Population 23,406 253,547 531,519





2017 Median Age 35.8 34.9 35

HO

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EH

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2017 Estimated Households 6,635 64,900 138,332

2022 Projected Households 6,883 67,291 143,453





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AN

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2017 Estimated White 46.6% 47.4% 46.3%

2017 Estimated Black or African American 3.8% 2.9% 2.9%

2017 Estimated Asian or Pacific Islander 17.8% 15.2% 18.0%

2017 Estimated American Indian or Native Alaskan 1.2% 1.0% 0.9%

2017 Estimated Other Races 30.6% 33.5% 31.8%

2017 Estimated Hispanic 61.6% 70.7% 67.1%

INC

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E 2017 Estimated Average Household Income $85,660 $84,641 $85,580

2017 Estimated Median Household Income $72,842 $69,932 $68,284

2017 Estimated Per Capita Income $24,651 $21,970 $22,609

ED

UC

ATI

ON

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2017 Estimated Elementary (Grade Level 0 to 8) 10.3% 15.8% 15.5%

2017 Estimated Some High School (Grade Level 9 to 11) 9.3% 11.0% 10.8%

2017 Estimated High School Graduate 28.7% 28.7% 27.4%

2017 Estimated Some College 22.2% 19.3% 19.0%

2017 Estimated Associates Degree Only 8.4% 6.9% 7.2%

2017 Estimated Bachelors Degree Only 16.1% 13.6% 14.7%

2017 Estimated Graduate Degree 5.1% 4.7% 5.4%

BU

SIN

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S 2017 Estimated Total Businesses 1,264 5,532 14,681

2017 Estimated Total Employees 14,374 62,888 171,757

2017 Estimated Employee Population per Business 11.4 11.4 11.7

2017 Estimated Residential Population per Business 18.3 45.3 35.8

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-- DEMOGRAPHICS --

The total population of West Covina is 108,669 people.

The Median HH Income is $74,589 which surpasses the state average by 8% & national average by 26%.

The Median Age of West Covina is 37.2

West Covina has a labor force of 56,050 people

Top Jobs by Occupation: Office/Administrative Support 15.28% Sales 12.81% Executive Managers/Admins 9.51% Health Diagnosing & Treatment 6.59%

Los Angeles County Overview • Demographics •West Covina Overview

Lee & Associates hereby advises all prospective purchasers of Net-Leased Invesment property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of an investment property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase.This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Lee & Associates expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of an investment property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any investment property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Lee & Associates and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this investment property.

Exclusively Listed By:

No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice.

BARR&BENNETTNETLEASEDINVESTMENTS

A Lee & Associates Team

RYAN BARRPrincipal

[email protected]

Lic#01338994

RYAN BENNETTPrincipal

[email protected]

Lic#01826517


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