816-832 N. 2ND STREET | EL CAJON, CALIFORNIA SAN DIEGO MSA · initial lease term with 2 (5-year) options to extend, demonstrating their commitment to the site. The lease features

TWO-TENANT NNN Investment Opportunity

816-832 N. 2ND STREET | EL CAJON, CALIFORNIA

SAN DIEGO MSAACTUAL SITE

REPRESENTATIVE PHOTO 2 NATIONAL NET LEASE GROUP

JACK QASHATAssociateSRS National Net Lease Group

3131 Camino Del Rio N, Suite 310San Diego, California 92108D 619.489.9002 M [email protected] CA License No. 01914468

SAM HANNASenior Vice PresidentSRS National Net Lease Group

3131 Camino Del Rio N, Suite 310San Diego, CA 92108D 619.489.9003 [email protected] CA License No. 01242719

Responsible Broker: Garrett Colburn, SRS Real Estate Partners | CA License No. 01416734

EXCLUSIVELY MARKETED BY

ACTUAL SITE 3 NATIONAL NET LEASE GROUP

5INVESTMENT SUMMARY

Offering Summary | Investment Highlights

8PROPERTY OVERVIEW

Aerials | Site Plan | Location Map

13AREA OVERVIEW

Demographics

15FINANCIALS

Rent Roll | Brand Profile

CONTENTS


PROPERTY PHOTO


SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a two-tenant, NNN leased, Superior Car Wash and Genie Auto Care investment property located in El Cajon, California (San Diego MSA). Superior Car Wash currently has more than 6.5 years remaining in their current lease term with 1 (10-year) and 1 (5-year) option to extend. The lease features 4% annual rental increases throughout the initial term and 5% annual rental increases throughout the option periods, growing NOI and hedging against inflation. The other tenant, Genie Auto, LLC, has approximately 9 years remaining in their initial lease term with 2 (5-year) options to extend, demonstrating their commitment to the site. The lease features market rate increases every 3 years capped at 5% throughout the initial term and option periods. The lease is NNN with limited landlord responsibilities making it an ideal, low-management investment opportunity for a passive investor. This offering represents a rare opportunity to acquire real estate within a dense, infill trade area with high barriers to new development.

The subject property is strategically located along N. 2nd Street, a primary retail thoroughfare averaging 25,400 vehicles passing by daily. The asset benefits from nearby direct on/off ramp access to Interstate 8 (66,000 VPD), a major east/west highway traveling throughout San Diego County connecting commuters to Interstate 5, one of the busiest freeways in the country. The Superior Car Wash & Genie Auto Care property is within close proximity to a variety of national/credit tenants including Walmart Neighborhood Center, Walgreens, Grocery Outlet, Petco, Starbucks, 7-Eleven, and more, significantly increasing consumer draw to the immediate trade area and promoting crossover store exposure for the site. Additionally, the property is surrounded by several apartment complexes including Oakdale Garden (64-units), Royal Oakdale (36-units), Woodlawn Manor (32-units), and Village Palm (18-units), providing a direct residential consumer base from which to draw. The 5-mile trade area is supported by more than 291,000 residents and 95,500 daytime employees with a healthy average household income of $93,000.

INVESTMENT SUMMARY


FUTURE DEVELOPMENT


Offering

Property Specifications

PRICING $5,908,000

NET OPERATING INCOME $324,925

CAP RATE 5.50%

TENANTS Superior Car WashGenie Auto, LLC

LEASE TYPE NNN

LANDLORD RESPONSIBILITIES Limited

RENTABLE AREA 7,000 SF (Est.)

LAND AREA 0.89 Acres

PROPERTY ADDRESS 816-832 N. 2nd Street El Cajon, CA 92021

YEAR BUILT 1973

PARCEL NUMBER 484-252-55-00

OWNERSHIP Fee Simple (Land & Building)

Parcel Map

OFFERING SUMMARY


Muti-Tenant Offering | Options to Extend | Scheduled Rental Increases

• Opportunity to purchase a 0.89 acre parcel with two freestanding buildings occupied by both Superior Car Wash and Genie Auto Care

Superior Car Wash:• Superior Car Wash currently has more than 6.5 years remaining in their current

lease term with 1 (10-year) and 1 (5-year) option to extend• The lease features 4% annual rental increases throughout the initial term and 5%

annual rental increases throughout the option periods, growing NOI and hedging against inflation

Genie Auto Care:• Genie Auto, LLC, has approximately 9 years remaining in their initial lease term with

2 (5-year) options to extend, demonstrating their commitment to the site• The lease features market rate increases every 3 years capped at 5% throughout

the initial term and option periods

Primary Retail Thoroughfare | Interstate 8 | Strong National/Credit Tenant Presence

• Strategically located along N. 2nd Street, a primary retail thoroughfare averaging 25,400 vehicles passing by daily

• Benefits from nearby direct on/off ramp access to Interstate 8 (66,000 VPD), a major east/west highway traveling throughout San Diego County connecting commuters to Interstate 5, one of the busiest freeways in the country

• Nearby national/credit tenants include Walmart Neighborhood Center, Walgreens, Grocery Outlet, Petco, Starbucks, 7-Eleven, and more

• Strong tenant synergy promotes crossover store exposure to the subject property and increases consumer draw to the immediate trade area

Direct Residential Consumer Base | Strong Demographics In 5-mile Trade Area

• Surrounding apartment complexes include: Oakdale Garden (64-units), Royal Oakdale (36-units), Woodlawn Manor (32-units), and Village Palm (18-units)

• More than 291,000 residents and 95,500 employees support the trade area• $93,000 average household income

INVESTMENT HIGHLIGHTS

9 NATIONAL NET LEASE GROUP

Location

Parking

Access

Parcel

Traffic Counts

Year Built

Improvements

Zoning

Located inEl Cajon, CA

San Diego County

There are approximately 17 parking spaces

on the owned parcel. The parking ratio is

approximately 2.43 stalls per 1,000 SF of leasable area.

N. 2nd Street 2 Access Points

Marline Aveune 2 Access Points

Parcel Number: 484-252-55-00 Acres: 0.89

Square Feet: 38,768 SF

N. 2nd Street 25,400 Cars Per Day

Interstate 8 66,000 Cars Per Day

1973

There is approximately 7,000 SF of existing building area

Commercial

PROPERTY OVERVIEW


N. 2ND ST.N. 2ND ST.

MARLINE AVE.MARLINE AVE.

PEACH AVE.PEACH AVE.

CARS PER DAY25,400

OAKDALE GARDENOAKDALE GARDEN(64-UNITS)(64-UNITS)

VILLAGE PALMVILLAGE PALM(18-UNITS)(18-UNITS)

WOODLAWN MANORWOODLAWN MANOR(32-UNITS)(32-UNITS)

ROYAL OAKDALEROYAL OAKDALE(36-UNITS)(36-UNITS)




INTERSTATE 8INTERSTATE 8

COUN

TY R

OAD

S17

COUN

TY R

OAD

S17

GREENFIELD GREENFIELD MIDDLE SCHOOLSMIDDLE SCHOOLS

KAISER PERMANENTE KAISER PERMANENTE BOSTONIA BOSTONIA

MEDICAL OFFICESMEDICAL OFFICES

BOSTONIA BOSTONIA LANGUAGE ACADEMY LANGUAGE ACADEMY

SOF’S SCHOOLSOF’S SCHOOL

MONTGOMERY MONTGOMERY MIDDLE SCHOOLMIDDLE SCHOOL

MADISON MADISON AVENUE AVENUE

ELEMENTARY ELEMENTARY SCHOOLSCHOOL

EL CAJON VALLEY EL CAJON VALLEY HIGH SCHOOLHIGH SCHOOL

EL CAJON TOWNEL CAJON TOWNAND COUNTRYAND COUNTRY

NARANCA NARANCA ELEMENTARY ELEMENTARY

SCHOOL SCHOOL

CARS PER DAY25,400

CARS PER DAY66,000

CARS PER DAY37,300

VALLEY AUTOMOTIVEPYLON SIGN

PYLON SIGN




CARS PER DAY25,400


SAN DIEGO22 min 17 miles

CHULA VISTA24 min 18 miles

LOCATION MAP

2019 ESTIMATED POPULATION

1 Mile 35,021

3 Mile 149,615

5 Mile 291,339

2019 AVERAGE HOUSEHOLD INCOME

1 Mile $64,705

3 Mile $80,393

5 Mile $92,979

2019 ESTIMATED TOTAL EMPLOYEES

1 Mile 7,841

3 Mile 46,202

5 Mile 95,566

EL CAJON


El Cajon, California

The City of El Cajon was incorporated on November 12, 1912. El Cajon is located in Southern California, just 15 miles due east of San Diego and is the fifth largest of 18 cities in San Diego County. The City currently occupies a land area of 14.4 square miles. The City had a population of 104,338 as of July 1, 2019.

This vibrancy is evident in our dynamic business environment. El Cajon is home to both global and nationally known corporations such as Taylor Guitars, one of the premier guitar manufacturing companies in the world. The City is also home to a long-time retail mall, Parkway Plaza that boasts over 170 stores, such as Macy’s Best Buy, Sear’s, JCPenney, Forever 21, H&M, and more! El Cajon is also known for the many car dealerships in town, with 14 currently within its borders, including Mercedes-Benz, BMW, and Lexus. Additionally, El Cajon has a wonderful downtown, with shops and restaurants that the entire family can enjoy. El Cajon’s location and attributes make it attractive and accessible to small investors and entrepreneurs, which enhances the City’s many business districts.

Major Employer are Cajon Valley Union School District, GKN Aerospace Chem-Tronics Inc., Grossmont-Cuyamaca Community College District, Grossmont Union High School District, Taylor Guitars, City of El Cajon, Country Hills Health Care, Wal-Mart, Home Depot and University Mechanical & Engineering. The most common jobs held by residents of El Cajon, CA, by number of employees, are Office & Administrative Support Occupations, Sales & Related Occupations, and Management Occupations.

The San Diego Zoo, Sea World (San Diego), San Diego Wild Animal Park, San Diego Aerospace Museum, San Diego Museum of Art, Balboa Park, LEGOland, Disneyland, Knott’s Berry Farm/Knott’s Soak City, The East County Performing Arts Center, The Knox House Museum, Gillespie Field, St. Madeleine Sophie’s Center and Garden and The Olaf Wieghorst Museum and Western Heritage Center are some of the nearby attractions.

El Cajon is home to Grossmount Community College, Cuyamaca College, San Diego Christian College and the Southern California Seminary.

The nearest major airport is San Diego International Airport. This airport has international and domestic flights from San Diego, California. Another major airport is Tijuana International Airport, which has international and domestic flights from Tijuana, Mexico. McClellan-Palomar Airport has domestic flights from Carlsbad, California.

San Diego County covers 4,261 square miles, approximately the size of the state of Connecticut, extending 70 miles along the Pacific Coast from Mexico to Orange County and inland 75 miles to Imperial County along the international border shared with Mexico. Riverside and Orange counties form the northern border. It is the most southwestern county in the contiguous 48 states. San Diego County enjoys a wide variety of climate and terrain, from coastal plains and fertile inland valleys to mountain ranges and the Anza-Borrego Desert. The Cleveland National Forest occupies much of the interior portion of the County. Population estimates as of July 1, 2019 was 39,512,223.

AREA OVERVIEW


1 MILE 3 MILES 5 MILES

2019 Estimated Population 35,021 149,615 291,339

2024 Projected Population 35,935 153,738 299,700

2010 Census Population 33,173 142,033 276,681

Projected Annual Growth 2019 to 2024 0.52% 0.55% 0.57%

Historical Annual Growth 2010 to 2019 0.58% 0.56% 0.57%

2019 Estimated Households 11,667 51,248 103,496

2024 Projected Households 11,924 52,502 106,193

2010 Census Households 11,218 49,064 98,706

Projected Annual Growth 2019 to 2024 0.44% 0.48% 0.52%

Historical Annual Growth 2010 to 2019 0.42% 0.48% 0.52%

2019 Estimated White 73.62% 79.08% 81.80%

2019 Estimated Black or African American 7.15% 5.70% 4.66%

2019 Estimated Asian or Pacific Islander 3.89% 3.60% 3.96%

2019 Estimated American Indian or Native Alaskan 0.92% 0.82% 0.77%

2019 Estimated Other Races 17.45% 13.04% 9.77%

2019 Estimated Hispanic 35.90% 29.59% 24.97%

2019 Estimated Average Household Income $64,705 $80,393 $92,979

2019 Estimated Median Household Income $45,759 $57,527 $70,574

2019 Estimated Per Capita Income $21,424 $27,682 $33,105

2019 Estimated Total Businesses 1,135 5,794 10,516

2019 Estimated Total Employees 7,841 46,202 95,566

AREA DEMOGRAPHICS


PPrroo PPrroo RReennttaall IInnccrreeaasseess LLeeaassee LLeeaassee

SSuuiittee TTeennaanntt NNaammee SSiizzee RRaattaa RReenntt RReenntt RReenntt RReenntt RRaattaa IInnccrreeaassee RReenntt RReenntt RReenntt RReenntt SSttaarrtt EEnndd OOppttiioonnss

## SSFF ((SSFF)) MMoonntthhllyy $$//SSFF//MMoo AAnnnnuuaall $$//SSFF//YYrr (($$)) DDaattee IInncc.. MMoonntthhllyy $$//SSFF//MMoo AAnnnnuuaall $$//SSFF//YYrr DDaattee DDaattee RReemmaaiinniinngg

1 Superior Car Wash 3,512 50% $21,577 $6.14 $258,924 $73.73 80% Nov-20 4.0% $22,440 $6.39 $269,280 $76.67 Nov-06 Oct-26 1 (10-Year) & 1 (5-Year)

Nov-21 4.0% $23,338 $6.65 $280,051 $79.74 (Renewed 2016)5% Annual Rental Inc. Throughout Options

Nov-22 4.0% $24,272 $6.91 $291,264 $82.93

2 Genie Car Care 3,488 50% $5,500 $1.58 $66,000 $18.92 20% Jan-22 5.0% $5,775 $1.66 $69,300 $19.87 Jan-19 Jan-29 2 (5-Year)

Jan-25 5.0% $6,064 $1.74 $72,765 $20.865% Rental Increase

Every 3 Years

TToottaall OOccccuuppiieedd 77,,000000 110000%% $$2277,,007777 $$33..8877 $$332244,,992244 $$4466..4422 110000%%

TToottaall VVaaccaanntt 00 00%% $$00 $$00 00%%

TToottaall // WWttdd.. AAvvgg:: 77,,000000 110000%% $$2277,,007777 $$33..8877 $$332244,,992244 $$4466..4422 110000%%

Notes:

1) Market rate with 5% cap adjusted every 3 years throughout the initial lease term and option periods. For purposes of evaluation, assumes 5%. (Genie Car Care)2) 30-day right of first refusal (Superior Car Wash & Genie Car Care)

4% Annual Rental Increases Thereafter

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.

FINANCIAL INFORMATION

Price $5,908,000

Net Operating Income $324,924

Cap Rate 5.50%

Lease Type NNN

PROPERTY SPECIFICATIONS

Year Built 1973

Rentable Area 7,000 SF

Land Area 0.89 Acres

Address 816-832 N. 2nd Street El Cajon, CA 92021

RENT ROLL


superiorcarwashelcajon.comCompany Type: Private

Superior Car Wash is the ultimate full service hand car wash. They will detail the car while one enjoys the relaxed and comfortable atmosphere of the store where one can shop or just sit and read while one waits. Superior Car Wash uses brand new state of the art soft cloth and equipment for washing and detailing. They provide complete detailing, inside and outside. They also wash vans and trucks as well.

Company Type: DomesticLocations: 1

Genie Auto Center provides fast oil changes, featuring high quality Valvoline motor oils and chemicals. Valvoline invented their motor oil over 150 years ago, and have been reinventing ever since. The Valvoline family of motor oil has a formula perfect for you vehicle’s needs.

Superior Car Wash Genie Auto Center

BRAND PROFILE

RETAIL PROFESSIONALS

275+

OFFICES

25+

LARGEST REAL ESTATE SERVICES FIRMin North America

exclusively dedicated to retail

#1

RETAIL TRANSACTIONS

in 2019 company wide

2100+

PROPERTIES SOLD

in 2019 NNLG

485

TRANSACTION VALUE in 2019 NNLG

$1.5B

SRS NATIONAL NET LEASE GROUP IS THE EXCLUSIVE NET LEASE CAPITAL MARKETS TEAM OF SRS REAL ESTATE PARTNERS.

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made

available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not

purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified

purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

*Statistics are for 2019

SRSRE.COM/NNLG

Documents

816-832 N. 2ND STREET | EL CAJON, CALIFORNIA SAN DIEGO MSA · initial lease term with 2 (5-year) options to extend, demonstrating their commitment to the site. The lease features