starbucks - anchored restaurant row€¦ · improvements, the presence or absence of contaminating...
TRANSCRIPT
An Absolute Net, Mult i -Tenant Investment in Southern Cal i fornia
Offering Memorandum
RESTAURANT ROWSTARBUCKS - ANCHORED
NON-ENDORSEMENT & DISCLAIMER NOTICE
CONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is
intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made
available to any other person or entity without the written consent of Marcus & Millichap. This Marketing
Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to
establish only a preliminary level of interest in the subject property. The information contained herein is not
a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation,
and makes no warranty or representation, with respect to the income or expenses for the subject property,
the future projected financial performance of the property, the size and square footage of the property and
improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance
with State and Federal regulations, the physical condition of the improvements thereon, or the financial
condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy
of the subject property. The information contained in this Marketing Brochure has been obtained from
sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of
the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these
matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the
information provided. All potential buyers must take appropriate measures to verify all of the information set
forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.
© 2017 Marcus & Millichap. All rights reserved.
NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee
identified in this marketing package. The presence of any corporation’s logo or name is not intended to
indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap,
its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and
is solely included for the purpose of providing tenant lessee information about this listing to prospective
customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
EXCLUSIVELY LISTED BY
O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A
WWW.MARCUSMILLICHAP.COM
PAUL BITONTIFIRST VICE PRESIDENT INVESTMENT
Office: (949) 419 - 3246
Cell: (714) 267 - 8582
Email: [email protected]
License: CA 01325076
RESTAURANT ROWSTARBUCKS - ANCHORED
Restaurant Row at Victorville
TABLE OF CONTENTS
EXCLUSIVELY LISTED BY:
01 23
07 33
15
EXECUTIVE SUMMARYSECTION 1 Investment Overview • Investment Highlights
COMPETITIVE COMPARABLESSECTION 4 Sales Comparables
PROPERTY DESCRIPTIONSECTION 2 Property Details • Regional Map • Property Photos
MARKET OVERVIEWSECTION 5 Location Overview • Location Highlights Market Aerial • Demographics
FINANCIAL ANALYSISSECTION 3 Pricing Details • Operating Data • Rent Roll
TABLE OF CONTENTS
at VictorvilleRESTAURANT ROW
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus
& Millichap ACT ID Z0100075
RESTAURANT ROWSTARBUCKS - ANCHORED
1
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
EX
EC
UT
IV
E
SU
MM
AR
Y
EXECUTIVESUMMARY
OFFERING SUMMARYMarcus and Millichap has been selected to exclusively represent the sale of Restaurant Row in Victorville, California, a portfolio of category leading National and Regional restaurants. The subject property is a 11,300 square foot newly constructed inline retail pad sitting on a 2.24 acre parcel. The real estate is well positioned in the trade area, located adjacent to the I-15 Freeway and Bear Valley Road on and off ramps. Fronting both Amargosa Road and the I-15 freeway, the property has excellent identity and traffic exposure. Traffic counts exceed 98,000 cars per day on the I-15 and 52,000 cars at Bear Valley and I-15. The location is prime in the trade area as evidenced by the new development that includes a 75 room Hawthorn Suites by Wyndham, Super Walmart, Kohl’s, Lowes Home Improvement, and a planned Home Goods, TJ Maxx, 24 Hour Fitness, as well as an additional 79 room Best Western Plus. Additionally, there is a proposed 128-bed Trauma Center, medical office building, physician village, day care, spiritual care development with a hotel. This project is comprised of 98 acres along Amargosa Road between Bear Valley and Main Street just 2.8 miles from the subject property. The project is part of the St. Joseph / St. Mary Healthcare system.
The tenant roster is a synergistic mix of restaurants consisting of Starbucks Coffee, Nekter Juice Bar, Which Wich Sandwiches, Pieology Pizza, Ono Hawaiian Barbeque, and Café Rio Mexican Grill. Access points and drive aisles provide excellent ingress and egress from the Hawthorn Suites by Wyndham, Walmart and Kohl’s for easy access to all of the restaurants. 76% of the leasable area (4 of 6 tenants) have corporate signature absolute net leases. The remaining two tenants are strong franchisees with excellent operational histories and personal rent guarantees. The investment provides annual rent growth with increasing cash flow and yield, protecting against inflation with a diversified base of strong restaurant tenants. The Quick Serve building is a catagory that was missing from Restaurant Row. It helps to provide additional choices, making this the main stop for the trade area and freeway traffic.
The Victor Valley includes the communities of Adelanto, Apple Valley, Hesperia, Lucerne Valley, Oak Hills, Phelan, Victorville and Wrightwood. Victorville is the business hub of the area and draws consumers from well beyond its immediate area. It is the largest commercial center between San Bernardino and the Nevada border. The city of Victorville is home to a large and diverse pool of workers and is home to 34 nearby universities, colleges and technical schools providing an abundant supply of skilled labor. Victorville has experienced tremendous growth over the last decade with the population increasing over 117% since 2000. The population continues to grow with projections of additional 20% growth over the next five years. Current population is 133,790 people in a 5 mile radius with an average household income of $76,267 within 1 mile of the property, and the high desert is in excess of 500,000 people.2
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
EX
EC
UT
IV
E
SU
MM
AR
Y
2
3
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
EX
EC
UT
IV
E
SU
MM
AR
Y
INVESTMENT HIGHLIGHTS
► Victorville, California Restaurant Row
► New Construction with Warranties
► New 10 Year NNN Corporate Leases
► Annual Rent Growth
► Ease of Management Property
► Explosive Trade Area Growth
► Average Household Income: $76,267 Within a
One Mile Radius
► New Proposed Hospital on Amargosa
4
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
EX
EC
UT
IV
E
SU
MM
AR
Y
98,000 CARS PER DAY ON I-15.
52,000 CARSPER DAY ON
BEAR VALLEY RD
NNN LEASESWITH ANNUAL RENT GROWTH
EXCELLENT LOCATION,
EXPLOSIVE TRADE AREA
TREMENDOUS DEMOGRAPHIC
GROWTH.DIVERSE AND
EXPERIENCED POOL OF WORKERS
5
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
EX
EC
UT
IV
E
SU
MM
AR
Y
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus
& Millichap ACT ID Z0100075
RESTAURANT ROWSTARBUCKS - ANCHORED
7
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
PR
OP
ER
TY
D
ES
CR
IP
TI
ON
PROPERTYDESCRIPTION
PARCEL MAP
INTE
RS
TATE
HW
Y 1
5
AT VICTORVILLERestaurant Row
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
PR
OP
ER
TY
D
ES
CR
IP
TI
ON
10
SITE PLAN
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
PR
OP
ER
TY
D
ES
CR
IP
TI
ON
11
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus
& Millichap ACT ID Z0100075
RESTAURANT ROWSTARBUCKS - ANCHORED
13
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
FI
NA
NC
IA
L
AN
AL
YS
IS
FINANCIALANALYSIS
17
PRICING DETAILS
Address:11604 Amargosa Road,
Victorville, California 92392
Price: $10,410,000
Buildings 1
Price Per Square Foot: $921.24
GLA 11,300 SF
CAP Rate 5.32%
Year Built 2017
Lot Size 2.24 Acres
Occupancy 100.00%
Net Operating Income $554,243.56
TENANTSQUARE
FOOTAGE% OF GLA INITIAL LEASE TERM OPTIONS ANNUAL RENT ANNUAL RENT / SF ADMIN FEES RENT INCREASES
LEASETYPE
Starbucks 2,000 17.70% 9/15/2016 - 9/14/2026 4 5-Year $126,240.00 $63.12 $3,253.56 10% Per 5 Years NNN
Nekter 1,200 10.62% 7/17/2017 - 2/16/2027 1 5-Year $52,560.00 $43.80 $8,256.002.5% Annual
Begins on Yr 3NNN
Which Wich 1,500 13.27% 8/14/2017 - 8/13/2027 3 5-Year $66,600.00 $44.40 -- 10% Per 5 Years NNN
Pieology 2,000 17.70% 9/1/2017 - 8/31/2027 2 5-Year $89,790.00 $43.80 -- 2.5% Annual NNN
Ono BBW 1,800 15.93% 9/1/2017 - 8/31/2027 2 5-Year $78,840.00 $43.80 $2,352.00 10% Per 5 Years NNN
Café Rio 2,800 24.78% 6/19/2017 - 6/18/2027 2 5-Year $122,080.00 $43.60 $4,272 10% Per 5 Years NNN
TOTAL 11,300 100% $536,110.00 $18,133.56
14
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
FI
NA
NC
IA
L
AN
AL
YS
IS
TENANTSQUARE
FOOTAGE% OF GLA INITIAL LEASE TERM OPTIONS ANNUAL RENT ANNUAL RENT / SF ADMIN FEES RENT INCREASES
LEASETYPE
Starbucks 2,000 17.70% 9/15/2016 - 9/14/2026 4 5-Year $126,240.00 $63.12 $3,253.56 10% Per 5 Years NNN
Nekter 1,200 10.62% 7/17/2017 - 2/16/2027 1 5-Year $52,560.00 $43.80 $8,256.002.5% Annual
Begins on Yr 3NNN
Which Wich 1,500 13.27% 8/14/2017 - 8/13/2027 3 5-Year $66,600.00 $44.40 -- 10% Per 5 Years NNN
Pieology 2,000 17.70% 9/1/2017 - 8/31/2027 2 5-Year $89,790.00 $43.80 -- 2.5% Annual NNN
Ono BBW 1,800 15.93% 9/1/2017 - 8/31/2027 2 5-Year $78,840.00 $43.80 $2,352.00 10% Per 5 Years NNN
Café Rio 2,800 24.78% 6/19/2017 - 6/18/2027 2 5-Year $122,080.00 $43.60 $4,272 10% Per 5 Years NNN
TOTAL 11,300 100% $536,110.00 $18,133.56
RENT ROLL
15
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
FI
NA
NC
IA
L
AN
AL
YS
IS
PRIM
AR
Y LE
ASE
TER
M
STARBUCKS NEKTER (1) WHICH WHICH (2) PIEOLOGY ONO BBQ (3) CAFÉ RIO TOTAL NOI(4)
Year 1 $126,240.00 $52,560.00 $66,600.00 $87,600.00 $78,840.00 $122,080.00 $533,920.00 $552,053.56
Year 2 $126,240.00 $52,560.00 $66,600.00 $89,790.00 $78,840.00 $122,080.00 $536,110.00 $554,243.56
Year 3 $126,240.00 $53,874.00 $66,600.00 $92,034.75 $78,840.00 $122,080.00 $539,668.75 $557,802.31
Year 4 $126,240.00 $55,220.85 $66,600.00 $94,335.62 $78,840.00 $122,080.00 $543,316.47 $561,450.03
Year 5 $126,240.00 $56,601.37 $66,600.00 $96,694.01 $78,840.00 $122,080.00 $547,055.38 $565,188.94
Year 6 $138,864.00 $58,016.41 $73,260.00 $99,111.36 $86,724.00 $134,288.00 $590,263.77 $608,397.33
Year 7 $138,864.00 $59,466.82 $73,260.00 $101,589.14 $86,724.00 $134,288.00 $594,191.96 $612,325.52
Year 8 $138,864.00 $60,953.49 $73,260.00 $104,128.87 $86,724.00 $134,288.00 $598,218.36 $616,351.92
Year 9 $138,864.00 $62,477.32 $73,260.00 $106,732.09 $86,724.00 $134,288.00 $602,345.41 $620,478.97
Year 10 $138,864.00 $64,039.26 $73,260.00 $109,400.40 $86,724.00 $134,288.00 $606,575.66 $624,709.22
(1) In addition to the Annual Rent, Nekter shall pay a Percentage rent of 2% times the amount of Gross Sales over $1,400,000 during each calendar year.(2) In addition to the Annual Rent, Which Wich shall pay a Percentage rent of 2% times the amount of Gross Sales over $1,500,000 during each calendar year.
(3) In addition to the Annual Rent, Ono BBQ shall pay a Percentage rent of 3% times the amount of Gross Sales over $3,000,000 during each calendar year.(4) NOI includes Admin Fees.
ANNUAL RENT INCREASE
16
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
FI
NA
NC
IA
L
AN
AL
YS
IS
ANNUAL CASH FLOW
17
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
FI
NA
NC
IA
L
AN
AL
YS
IS
Tenant Name Starbucks Corporation
Lease Commencement 9/15/2017
Lease Expiration 9/14/2027
Gross Leasable Area 2,000 SF
Original Term 10 years
Option Term 4 (5-year)
Pro Rata Share of Project 17.70%
Headquartered Seattle, Washington
No. of Locations 26,696
Website http://www.starbucks.com/
TENANT SUMMARY
Starbucks Corporation is an American coffee company and coffee-house chain. Starbucks was founded in Seattle, Washington in 1971. Back then, the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. As of Novem-ber 2016, it operates 23,768 locations worldwide. Starbucks has been awarded “One of the Most Admired Companies in America,” by Fortune for twelve years running. Ethisphere has also awarded the company as amongst the “World’s Most Ethical Companies” for eight years in a row. Starbucks has even been recognized in China and Canada for being considered to be “One of the Best Companies to Work For.” in 2014.Starbucks is considered the main representative of “second wave coffee”, initially distinguishing itself from other coffee-serving venues in the US by taste, quality, and customer experience while populariz-ing darkly roasted coffee.Starbucks is publicly traded as NASDAQ: SBUX.
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
CO
MP
AR
AB
LE
P
RO
PE
RT
IE
S
18
TENANT SUMMARY
Tenant Name Nekter Juice Bar
Lease Commencement 7/17/2017
Lease Expiration 7/16/2027
Gross Leasable Area 1,200 SF
Original Term 10 years
Option Term 1 (5-year)
Pro Rata Share of Project 10.6%
Headquartered Costa Mesa, California
No. of Locations 70
Website http://www.nekterjuicebar.com
Privately-owned and founded in Southern California by two healthy living enthusiasts, Steve and Alexis Schulze, Nékter Juice Bar is ded-icated to inspiring a community of kids and adults to live an active, well-balanced, health-minded and compassionate life. Now with over 70 corporate and franchise locations in California, Arizona, Colorado, Nevada and Texas, Nékter Juice Bar is a modern reinvention of the juice bar, and continues to be at the forefront of the juicing revolu-tion, offering an array of cold-pressed juices, smoothies, coffees, and acai bowls that are natural, unprocessed, nutrient-rich, great tasting, and affordable. The “Nékter Life” also includes making a positive difference by offering food with a purpose and by supporting char-itable organizations in the communities they serve. They use fresh, natural, and raw ingredients to maintain the integrity of their menu. All of Nékter’s products are designed to promote healthy living and are natural, raw, and vegan in form. Their menu items are benefical to health, delicious in taste, and affordable in price. R
es
ta
ur
an
t
Ro
w
at
V
ic
to
rv
il
le
//
C
OM
PA
RA
BL
E
PR
OP
ER
TI
ES
19
Tenant Name Which Wich Superior Sandwiches
Lease Commencement 8/14/2017
Lease Expiration 8/13/2027
Gross Leasable Area 1,500 SF
Original Term 10 Years
Option Term 3 (5-year)
Pro Rata Share of Project 13.27%
Headquartered Dallas, Texas
No. of Locations 440
Website https://www.whichwich.com/
TENANT SUMMARY
Which Wich Superior Sandwiches is an American fast casual restau-rant chain specializing in sandwiches and salads. It has its headquar-ters in Downtown Dallas, Texas. As of December 2016, it has 404 locations open in 36 U.S. states as well as the District of Columbia, along with 27 international locations in Bahrain, Guatemala, Kuwait, Mexico, Oman, Panama, Qatar, Saudi Arabia, and the United Arab Emirates. In 2007, the chain ranked as the fastest growing restaurant chain concept with 50 operating stores or less, opening 9 locations during a four-month period at the beginning of the year. In 2009, the chain ranked as the sixth fastest-growing concept in the indus-try, according to restaurantchains.net. In 2013, the chain opened locations in Mexico City, Panama City, and Dubai. In 2015, the chain opened three locations in Guatemala City. Which Wich is known for its ordering system, in which customers use red Sharpie markers to mark up pre-printed menus on sandwich bags. They select a sand-wich from 10 categories, then choose the bread, cheese, spreads, and toppings. The sandwiches are then prepared, and delivered in the personalized sandwich bags.
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
MA
RK
ET
O
VE
RV
IE
W
20
TENANT SUMMARY
Tenant Name Pieology
Lease Commencement 9/1/2017
Lease Expiration 8/31/2027
Gross Leasable Area 2,000
Original Term 10 years
Option Term 2 (5-year)
Pro Rata Share of Project 17.70%
Headquartered Rancho Santa Margarita, CA
No. of Locations 150+
Website http://www.pieology.com/
Pieology prides itself on providing the best tasting, healthiest pizza in the world. The fast-casual pizza restaurant is the fastest-growing chain in America, according to data compiled by Technomic. Pieolo-gy offers customizable pies with toppings like pineapple, pepperoni, and cilantro. The chain’s sales grew a whopping 230% in 2014 to $44.6 million, according to Technomic.
Pieology has 140 units in 11 states. The company expects to nearly double that number by the end of the year. 24 new locations are anticipated to open by the end of the summer. Pieology seeks the appeal of customers by allowing them to customize their pizzas (making it similar to Chipotle) — from wheat crust to gluten-free crust to vegetarian pizzas to dairy-free cheese. There are 40 toppings, and a custom pizza is $10 or less. Pielogy also caters to the local de-mographic and alters the menu for each individual community. For instance, it uses garlic from Gilroy, California, in its local pizzas there.
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
MA
RK
ET
O
VE
RV
IE
W
21
Tenant Name HGL Restaurant Group, LLC
Lease Commencement 9/1/2017
Lease Expiration 8/31/2027
Gross Leasable Area 1,800 SF
Original Term 10 Years
Option Term 2 (5-year)
Pro Rata Share of Project 15.93%
Headquartered Diamond Bar, CA
No. of Locations 70+
Website https://www.onohawaiianbbq.com/
TENANT SUMMARY
Ono Hawaiian BBQ specializes in Hawaiian cuisine by offering an au-thentic selection of Hawaiian “Plate Lunches” and a variety of island inspired foods. “Ono” means delicious in Hawaiian . The key to being Ono is using fresh ingredients and making the dishes in-house dai-ly using their delicious recipes. They create their sauces from scratch and marinate their meats everyday for a blend of perfect flavor. They hand roll their Katsu in panko bread crumbs and cook their soups fresh daily. Their Teriyaki and Katsu sauces are prepared in-house with the unique blend of authentic Hawaiian spices.They have over 70 corporately owned locations throughout California and Arizona, and are actively expanding into the Inland Empire, Or-ange County, San Francisco Bay, Central Valley, Los Angeles County and Phoenix Metro area.
22
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
FI
NA
NC
IA
L
AN
AL
YS
IS
TENANT SUMMARY
Tenant Name Cafe Rio, Inc
Lease Commencement 6/19/2017
Lease Expiration 6/18/2027
Gross Leasable Area 2,800 SF
Original Term 10 years
Option Term 2 (5-year)
Pro Rata Share of Project 24.78%
Headquartered Salt Lake City, UT
No. of Locations 120+
Website https://www.caferio.com/
Cafe Rio, or Cafe Rio Mexican Grill, is a fast casual restaurant chain based in Salt Lake City, with branches in Arizona, California, Colora-do, Florida, Idaho, Maryland, Montana, Nevada, Utah, Virginia, Wash-ington, and Wyoming. The company specializes in Mexican cuisine. Its menu includes appetizers, tostadas, salads, burritos, desserts, enchiladas, tacos, quesadillas, soups, and beverages. The company also provides catering services. As of October 2017, the chain has 120 locations. Cafe Rio was started in 1997 by Steve and Tricia Stan-ley in St. George, Utah. In December 2004, Bob and Kathleen Nilsen, Spencer K Hill, along with SKM/Apax Partners purchased the chain, which at the time had six restaurants. In 2011, Dave Gagnon took over as CEO and COO at the same time as Bob Baker was appointed President and CFO. The company expanded operations and current-ly has 120 operating restaurants. Cafe Rio’s recipes are inspired from the traditional cooking of the Rio Grande region of Northern Mexico, Southern Texas and New Mexico.
23
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
FI
NA
NC
IA
L
AN
AL
YS
IS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus
& Millichap ACT ID Z0100075
RESTAURANT ROWSTARBUCKS - ANCHORED
25
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
CO
MP
AR
AB
LE
P
RO
PE
RT
IE
S
COMPARABLE PROPERTIES
PROPERTY NAME STATUS PRICE CAP RATEPRICE PER
FOOT
Restaurant Row at Victorville Just Listed $10,410,000 5.32% $921.24
Shoppes at Corona Vista On Market $5,595,000 5.00% $999.00
Spruce Plaza On Market $9,618,000 5.00% $1,074.04
Shops to Walmart - Ontario 8/17/2016 $5,968,800 5.02% $879.58
Amador Plaza - Dublin 7/20/2016 $4,900,000 4.50% $1,088.89
The Plaza - La Mesa 10/18/2017 $4,670,000 4.90% $824.65
Meridian Square - Concord 11/1/6/2016 $7,787,500 5.1% $927.08
SALES COMPARABLES – SUMMARY
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
CO
MP
AR
AB
LE
P
RO
PE
RT
IE
S
26
5
6
3
4
1
2
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
CO
MP
AR
AB
LE
P
RO
PE
RT
IE
S
27
RESTAURANT ROW AT VICTORVILLE11604 Amargosa Rd, Victorville, CA 92392
1
SALES COMPARABLES
SALES PRICE $10,410,000
Sale Date Just Listed
Year Built 2018
Cap Rate 5.32%
Price Per SF $921.24
SALES PRICE $5,595,000
Sale Date On Market
Year Built 2018
Cap Rate 5.00%
Price Per SF $999.00
ADDITIONAL INFO
Gross Leasable Area 11,300 SF
Lot Size 2.24 Acres
Brand new 2018 construction, 10 year corporate NNN leases with increases
SHOPPES AT CORONA VISTA - PAD 1924 East Ontario Ave, Corona, CA 92881
ADDITIONAL INFO
Gross Leasable Area 5,600 SF
Lot Size 0.98 Acre
Shadow-anchored by Smart & Final. Supercuts is on a 7-year term with 3% annual increases. Dunkin Donuts and MOD Pizza are on 10-
year terms with 10% increases every 5 years.
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
CO
MP
AR
AB
LE
P
RO
PE
RT
IE
S
28
2
SALES PRICE $9,618,000
Sale Date On Market
Year Built 2017
Cap Rate 5.00%
Price Per SF $1074.04
SPRUCE PLAZA10877 E Foothill Blvd, Rancho Cucamonga, CA 91730
ADDITIONAL INFO
Gross Leasable Area 8,955 SF
Lot Size 1.22 Acre
43% of GLA are Franchisees. Tenants are on 10-year leases with 2 (5-year) options. There are 10% rent increases every 5 years. Admin fees
are counted as income.
3
SALES PRICE $5,968.800
Sale Date 8/17/2016
Year Built 2014
Cap Rate 5.02%
Price Per SF $879.58
SHOPS TO WALMART - ONTARIO1337 N Mountain Ave, Ontario, CA 91762
ADDITIONAL INFO
Gross Leasable Area 6,786 SF
Lot Size 1.05 Acre
Tenants include T-Mobile, Yogurtland, Waba Grill and Wells Fargo. There is no tenant rollover until 2021 with 77% GLA leased through
2026.
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
CO
MP
AR
AB
LE
P
RO
PE
RT
IE
S
29
4
SALES PRICE $4,900,000
Sale Date 7/20/2016
Year Built 2014
Cap Rate 4.50%
Price Per SF $1,088.89
AMADOR PLAZA - DUBLIN7295 Amador Plaza Rd, Dublin, CA 94568
ADDITIONAL INFO
Gross Leasable Area 4,500 SF
Lot Size 0.75 AC
Property is lease to Two Corporate tenants: The Habit and Freeb!rds. At the time of sale, both tenants have 8 years remaining on Primary lease term with 5-year options. 10% rent increases every 5 years.
5
SALES PRICE $4,670,000
Sale Date 10/18/2017
Year Built 2016
Cap Rate 4.90%
Price Per SF $824.65
THE PLAZA - LA MESA 8216 Parkway Dr, La Mesa, CA 91942
ADDITIONAL INFO
Gross Leasable Area 5,663 SF
Lot Size 0.89 AC
Property is leased to The Habit and USE Credit Union.
SALES COMPARABLES
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
CO
MP
AR
AB
LE
P
RO
PE
RT
IE
S
30
6
SALES PRICE $7,787,500
Sale Date 11/16/2016
Year Built 2015
Cap Rate 5.1%
Price Per SF $927.08
MERIDIAN SQUARE - CONCORD1100 Concord Ave, Concord, CA 94520
ADDITIONAL INFO
Gross Leasable Area 8,400 SF
Lot Size 0.89 AC
Tenants include The Habit Burger, Jersey Mikes, Noodles & Company, Blaze Pizza.
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
CO
MP
AR
AB
LE
P
RO
PE
RT
IE
S
31
Avg 4.92%
SALES COMPARABLES
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
CO
MP
AR
AB
LE
P
RO
PE
RT
IE
S
32
Avg $965.54
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
CO
MP
AR
AB
LE
P
RO
PE
RT
IE
S
33
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus
& Millichap ACT ID Z0100075
RESTAURANT ROWSTARBUCKS - ANCHORED
35
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
MA
RK
ET
O
VE
RV
IE
W
MARKET OVERVIEW
COUNTY OVERVIEWSan Bernardino County is the largest county in the contiguous United States: The county covers more than 20,000 square miles of land. There are 24 cities and towns in the county and multiple unincorporated areas. The county is bordered by Los Angeles, Orange, Riverside, Inyo and Kern counties as well as the Arizona and Nevada state lines. Interstates 10, 40, and 15, the major vehicle and truck routes into Southern California all travel through San Bernardino County as do the major rail freight routes. San Bernardino County has a population of 2.1 million people and a total of 705,700 wage and salary jobs. The per capita income is $34,414 and the average salary per worker is $54,046. There are at least 35 official wilderness areas in the county that are part of the National Wilderness Preservation System. This is the largest number of any county in the United States. Places of interest within the County include: The Mojave National Preserve, Calico Ghost Town, Zzyzx - a small desert settlement that used to be a health spa and is now the Desert Studies Center, Joshua Tree National Park, San Bernardino National FOrest - home to Big Bear Lake outdoor activities, Goldstone Deep Space Com-munications Complex, Snow Summit and Bear Mountatin Ski Resort.
California State University San Bernardino
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
MA
RK
ET
O
VE
RV
IE
W
36
AIRPORTS
San Bernardino International Airport
LA/ Ontario International Airport
Southern California Logistics Airport
Apple Valley Airport, Baker Airport, Barstow-Daggett Airport, Chino Airport, Needles Airport
Big Bear City Airport, Cable Airport, Redlands Municiple Airport
MAJOR ROADWAYS
Interstate 10, 15, 40, 215
State Route 15, 95, 395, 2, 18, 38, 58, 60, 62, 66, 71, 83, 127, 138, 142, 173, 178, 189, 247, 259, 330
MAJOR EMPLOYERS
California State University, San Bernardino
Caltrans District 8
City of San Bernardino
Community Hospital of San Bernardino
San Bernardino City Unified School District
San Bernardino County Sheriff ’s Department
San Bernardino County Superintendent of Schools
San Manuel Band of Mission Indians
CITY OVERVIEWVictorville is a city located in the Victor Valley of southwestern San Bernardino County, California. Its estimated population as of July 1, 2013 was 121,096. Southern California Logistics Airport, lo-cated in Victorville is a 2,500-acre world-class aerospace services hub, providing aircraft owners, manufacturers and aerospace service providers with an ideal location to serve the global market. It is also the top employer of the city, followed by Victor Valley College, Desert Valley Hospital, Verizon, Victorvalley Union High School District and Victor Elementary School District. The Victor Valley offers numerous recreational options. The Performing Arts Center, located on the Victor Valley College campus, provides a wide variety of cultural entertainment including concerts, speakers, plays, musicals, and more. Old Town Victorville boasts an eclectic selection of antique stores and specialty shops and is home to the nostalgic Route 66 Museum. The Victor Valley Mu-seum, located at Jess Ranch in Apple Valley, provides a look at local history, and the Apple Valley Science and Technology Center gives kids of all ages a glimpse of the future. The San Bernardi-no County Fair in Victorville livens up each spring with carnival rides, livestock competitions, exhibits, a rodeo, a demolition derby, celebrity concerts and much more. Throughout the year the fairgrounds plays host to many other activities including the annual High Desert Opportunity Business Outlook Conference, Home & Garden Show, and Fourth of July Fireworks Spectacular.
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
MA
RK
ET
O
VE
RV
IE
W
37
DEMOGRAPHICS HIGHLIGHTS
133,790
$76,267
85.31%
5-MILE POPULATION
AVERAGE HOUSEHOLD INCOME1-MILE
OWNER OCCUPIED HOUSING UNITS
Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
MA
RK
ET
O
VE
RV
IE
W
38
POPULATION 1-MILE 3-MILES 5-MILES2000 Population 1,734 21,892 52,582
2010 Population 5,583 49,485 110,069
2014 Population 5,687 51,013 114,163
2019 Population 7,159 61,045 133,790
INCOME 1-MILE 3-MILES 5-MILES
Average $76,267 $68,547 $62,313
Median $69,739 $58,913 $51,576
Per Capita $19,118 $18,466 $17,481
HOUSEHOLDS 1-MILE 3-MILES 5-MILES2000 Households 4,177 9,817 41,165
2010 Households 3,980 9,904 43,947
2016 Households 4,177 12,099 49,880
2021 Households 4,280 12,381 51,436
Housing (2015) $72,753 $74,485 $77,546 Re
st
au
ra
nt
R
ow
a
t
Vi
ct
or
vi
ll
e
//
MA
RK
ET
O
VE
RV
IE
W
39
E X C L U S I V E LY L I S T E D B Y
AT VICTORVILLERestaurant Row
PAUL BITONTIFirst Vice President Investments
Office: (949) 419 - 3246Cell: (714) 267 - 8582
Email: [email protected]: CA 01325076