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Net Lease Best Buy For Sale


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Net lease Best Buy in Los Angeles MSA for sale

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Net Lease Best Buy For Sale

  1. 1. NET LEASED INVESTMENT OFFERING Best Buy 23000 Savi Ranch Parkway Yorba Linda, CA (Los Angeles MSA)
  2. 2. NET LEASED INVESTMENT OFFERING 1) Confidentiality & Disclaimer 2) Executive Summary 3) Property Overview 4) Assumable Financing Overview 5) Aerial 6) Site Plan 7) Maps 8) Tenant Profile 9) Demographic Comparison Report 10) Location Overview 11) Contact Information TABLE OF CONTENTS TABLE OF CONTENTS 8) Tenant Profile 9) Demographic Comparison Report 10) Location Overview 11) Contact Information
  3. 3. NET LEASED INVESTMENT OFFERING The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum 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. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group 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. CONFIDENTIALITY & DISCLAIMER CONFIDENTITALITY & DISCLAIMER
  4. 4. NET LEASED INVESTMENT OFFERING The Boulder Group is pleased to exclusively market for a sale single tenant net leased Best Buy property located in the Los Angeles MSA. The Best Buy property is located in the city of Yorba Linda, approximately 30 miles southeast of downtown Los Angeles. Yorba Linda is located in northern Orange County, which is recognized as one of the most counties in the United States. Average household income is in excess of $134,800 within three miles of the property. Best Buy has high visibility from Riverside Freeway 91, a primary thoroughfare that experiences volumes in excess of 300,000 vehicles per day. Riverside Freeway 91 runs directly to Newport Beach, approximately 20 miles southwest of the property. Additionally, the property has excellent ingress and egress and an abundance of on-site parking. The property is located within Savi Ranch Park; Savi Ranch Park is a regional trade destination encompassing a wide range of retail, dining, entertainment and buildings. The area is home to over 130 retailers and businesses. Best Buy is positioned as a freestanding outparcel to a shopping center anchored by Kohl’s, Dick’s Sporting Goods, Bed Bath & Beyond and Michaels. The Best Buy has shared access with the shopping centers and business within Savi Ranch Park. Other retailers in the immediate area include Costco, Target, Home Depot, Staples, Petco and Regal Cinema 14. Major employers in Savi Ranch Park include CareFusion (NYSE: CFN) and Nobel Biocare (Swiss Stock Exchange: NOBN). The property further from its location in the northern Orange County submarket due to the low overall retail vacancy rate of 5.8%. The overall retail vacancy rate has remained stable at this low rate for the last three quarters and is projected to decrease in the near future. The original lease commenced in December 1997 with a primary term of 20 years. The lease features three 5-year renewal option periods with 5% rental escalations. Best Buy is a publicly traded company on the New York Stock Exchange (BBY), with a market capitalization of $11 billion. Best Buy has a Standard & Poor’s rating of BB. INVESTMENT HIGHLIGHTS • Located within the Los Angeles MSA • Located in Orange County with average household income in excess of $134,800 within three miles of the property • The northern Orange County submarket has an overall retail vacancy rate of 5.8% • Best Buy is a publicly traded company (NYSE: BBY) • 5% rental escalations in each of the three 5-year renewal option periods • Located in a primary retail trade area as an outparcel to a shopping center anchored by Kohl’s, Dick’s Sporting Goods, Bed Bath & Beyond and Michaels • Positioned adjacent to Riverside Freeway 91 (300,000 VPD) EXECUTIVE SUMMARY EXECUTIVE SUMMARY • Bond net lease with no landlord responsibilities
  5. 5. NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEW PROPERTY OVERVIEW Price: $6,300,000 Cap Rate: 9.37% Rent Schedule: NOI Escalation Date $590,389 $619,908 1/1/2018 (Option 1) $650,904 1/1/2023 (Option 2) $683,449 1/1/2028 (Option 3) Renewal Options: Three 5-Year Lease Commencement Date: December 24, 1997 Lease Expiration Date: December 31, 2017 Tenant: Best Buy Credit Rating: BB (Standard & Poor’s) Year Built: 1997 Landlord Obligations: None Rentable Square Feet: 46,449 Land Size: 4.0 acres
  6. 6. NET LEASED INVESTMENT OFFERING ASSUMABLE FINANCING OVERVIEW ASSUMABLE FINANCING OVERVIEW Loan Balance (November 2013): $2,883,753 Maturity Date: December 1, 2022 Interest Rate: 5.98% Annual Debt Service: $379,240 Term: 15 year Amortization: 16 year Loan to Value: 46% Equity Investment: $3,416,247 Loan Balance at Maturity: $396,861 Loan Balance at Lease Expiration: $1,908,018 Cash on Cash Return: 6.18% Assumption Fee: 1% of Outstanding Balance Recourse: None Assumable Financing Overview The purchaser must assume the in place financing detailed below. 2013 2014 2015 2016 2017 Net Operating Income $ 590,389 $ 590,389 $ 590,389 $ 590,389 $ 590,389 Mortgage Payments $ (379,240) $ (379,240) $ (379,240) $ (379,240) $ (379,240) Cash Flow $ 211,149 $ 211,149 $ 211,149 $ 211,149 $ 211,149 Cash on Cash Return 6.18% 6.18% 6.18% 6.18% 6.18% Cash on Cash: November 2013 - December 2017 The above are shown on a full year basis
  10. 10. NET LEASED INVESTMENT OFFERING Best Buy is an American multinational consumer electronics corporation headquartered in Minnesota. Best Buy operates numerous subsidiaries including CinemaNow, Geek Squad, Magnolia Audio Video, Sales, Cowboom, and in Canada operates under both the Best Buy and Future Shop labels. Best Buy operates over 1,150 stores and over 100 Best Buy Express automated retail stores in airports and malls across the country. Best Buy stores sell electronics, movies, music, computers, televisions, games, and appliances offering brand name products including Apple, Samsung, Sony and Toshiba. Additionally, Best Buy engages in the sale of cellular phones including Verizon Wireless, AT&T Wireless, Sprint PCS, Boost Mobile and T-Mobile. Best Buy is publicly traded on the NYSE under the symbol BBY and has a market cap of $11 billion. Website: Number of Locations: Stock Symbol: BBY Standard & Poor’s Rating: Market Capitalization: $11 billion TENANT PROFILE TENANT PROFILE BB 1,150
  11. 11. NET LEASED INVESTMENT OFFERING Population 1-mi 3-mi 5-mi Total Population 9,333 62,932 117,041 Total Households 3,343 21,738 40,389 Income Median Household Income $110,823 $112,212 $108,131 Average Household Income $135,296 $134,825 $128,612 DEMOGRAPHIC COMPARISON REPORT DEMOGRAPHIC COMPARISON REPORT
  12. 12. NET LEASED INVESTMENT OFFERING Yorba Linda is an affluent suburban community in northeastern Orange County, California approximately 30 miles southeast of downtown Los Angeles. Yorba Linda has a median household income in excess of $120,000 and is identified as one of the richest cities in the U.S. by the U.S. Census Bureau. At the time of the 2010 U.S. Census, Yorba Linda had a population of 64,234. The Yorba Linda economy is anchored by two main commercially zoned areas, Savi Ranch and the north side of La Palma Avenue which is primarily an office park. Savi Ranch contains retailers, auto dealers, hotels and office buildings. Major employers in Yorba Linda include, CareFusion (NYSE: CFN), Nobel Biocare and Costco. Los Angeles is the most populous city in the state of California and the second most populous city in the United States, second to only New York City. At the time of the 2010 U.S. Census Los Angeles had a population of 3,792,621 and the greater Los Angeles MSA had a population of over 12,800,000. Los Angeles is a global city, with strengths in business, international trade, entertainment, culture, media, fashion, science, sports, technology, education and medicine and research. The city has been ranked sixth in the Global Cities Index and 9th in the Global Economic Power Index. Los Angeles is most well known as being the home to Hollywood, globally recognized as the epicenter of the motion picture industry. Other major landmarks in the Los Angers area include Grauman’s Chinese Theater, Walt Disney Concert Hall, Griffith Observatory, L.A. Live and the Capitol Records Building. The city is home to several professional sports teams including the Los Angeles Dodgers of Major League Baseball, the Los Angeles Kings of the National Hockey League, the Los Angeles Clippers and Los Angeles Lakers of the National Basketball Association. The economy of Los Angeles is driven by international trade, entertainment, aerospace, technology, fashion and tourism. The city is home to six Fortune 500 companies including Occidental Petroleum, Heath Net, AECOM, CBRE Real Estate and Tutor Perini. Additionally, there are multiple universities located in Los Angeles, among them are The University of Southern California, University of California Los Angeles and California State University, Los Angeles. LOCATION OVERVIEW LOCATION OVERVIEW
  13. 13. NET LEASED INVESTMENT OFFERING 666 Dundee Road, Suite 1801 Northbrook, IL 60062 Randy Blankstein President 847.562.0003 Jimmy Goodman Partner 847.562.8500 CONTACT INFORMATION CONTACT INFORMATION The property is being marketed in conjunction with Jason Pongsrikul, a licensed California Real Estate Broker (CA LIC #: 01785565)