fresh easy ADDITIONAL OFFERING MEMORANDUM TENANTS · John DuBois. 916. 274. 4424 [email protected] CA DRE #00702547. Mark Denholm. 916. 274. 4404 [email protected] CA DRE #01437366. INVESTMENT

Jon Gianulias916. 274. [email protected] CA DRE #01227233

John DuBois916. 274. [email protected] CA DRE #00702547

Mark Denholm916. 274. [email protected] CA DRE #01437366

OFFERING MEMORANDUMTHE SHOPS ON BRIMHALLBAkERSfIELd, CALIfORNIA

$5,250,0006.6% CAP RATE 2264 Fair Oaks Blvd. Suite 201

Sacramento, CA 95825CA DRE #01904661

Presented by:




fresh&easy

Neighborhood Market

AND 6 ADDITIONAL TENANTS




INVESTMENT HIGHLIGHTS

• Fresh&Easyon20yearlease(exp.2029)atbelowmarketrentofonly$.77persquarefootofbuildingarea.

• JackintheBoxon20yearlease(exp.2029)atrelativelylowannualrentof$82,500.

• BothFresh&EasyandJackintheBoxconstructedtheirownbuildingsattheirexpense.

• Scheduledrentalincreasesforalltenants.

• Separateparcelsprovideflexibleexitstrategyandpotentialupside.

• Entitledforadditional19,336SFbuildable.

OFFERING SUMMARY

Address 11000 Brimhall Road Bakersfield,California93312

Location NECBrimhallRd&JewettaAve

Price $5,250,000

APNs(KernCounty) 110-401-06,07,08,09&10

PriceperSquareFoot $220.76/SF(developed)

CapRate 6.6%

NOI(2014) $346,111

GrossLeasableArea ±23,781SF

LandAreaIncluded 4.84Acres

The ShopS on BrimhallBakerSfield, California




Proforma Operating Statement

Scheduled Rental Income 369,998

1 CAM Reimbursement Income 83,452

Gross Scheduled Income 453,450

2 Vacancy & Collection Loss 5% (9,236)

Effective Gross Income 444,214

Operating ExpensesMaintenance & Repairs 62,478Property Taxes 15,625Insurance 2,000Management Fee 18,000

Total Estimated Operating Expenses (98,103)

Net Operating Income 346,111

1. CAM reimbursement income and operating expenses are from Seller's 2014 budget.

2. Vacancy & Collection Loss excludes income from Jack In The Box and Fresh & Easy.






Exit StrategyComponent Pricing

Jack In The BoxRent 82,500 Cap Rate 5.00%Value 1,650,000 Cost of Sale 6% (99,000) Net Value 1,551,000

Fresh & EasyRent 128,400 Cap Rate 6.00%Value 2,140,000 Cost of Sale 6% (128,400) Net Value 2,011,600

ShopsNOI 143,189 Cap Rate 7.50%Value 1,909,188 Cost of Sale 6% (114,551) Net Value 1,794,637

Subtotal 5,357,237

Land Value $12 919,980

Total Component Value $6,277,217

Theprojectconsistsoffive(5)separateparcelsthatcouldbesoldindividuallyforasignificantpotentialprofit.




P R O P O S E D P R O P O S E D

±2,61

2 SF

±2,5

10 S

F

±13,969 SF

±1,0

14 S

F

±1,1

78 S

F

±1,0

96 S

F

±1,4

02 S

F

fresh&easy

Neighborhood Market

Elegant Nails

BRIMHALL ROAD

JEW

ETTA

AVE

NU

E


fresh&easy

Neighborhood Market

±60,548 SF±36,590 SF

±38,768 SF ±37,897 SF

±37,026 SF

TwoUndevelopedParcels

ParcelsOffered

PROPERTY DETAILSThe Shops on Brimhall iscomprised of three (3)separate parcels withapproximately ± 23,781square feet of fully-leasedand occupied buildings, aswellastwo(2)fully-improvedparcelswithentitlements foranadditional± 19,336squarefeetofshopspace.




Rent Increases Annual Annual Monthly MonthlyUnit # Tenant Name Start End SF Date PSF Rent PSF Rent

400‐11000A‐CU Mountain Mike's Pizza 06/31/13 12/31/23 2,612 Current 18.00 47,016 1.50 3,918.00

Jan‐16 19.80 51,718 1.65 4,309.80400‐1000C‐CU Regis Corporation Store #80984 08/20/08 12/31/14 1,014 Current 28.20 28,594 2.35 2,382.80

Jan‐15 32.40 32,854 2.70 2,737.80

Jan‐20 37.20 37,721 3.10 3,143.40400‐11000‐CU Elegant Nails and Spa 04/30/08 12/31/18 1,178 Current 31.74 37,389 2.64 3,115.75400‐11000E‐CU Goin' Postal 08/04/09 12/31/16 1,096 Current 16.20 17,755 1.35 1,479.60

Jan‐15 16.80 18,413 1.30 1,534.40

Jan‐16 17.40 19,070 1.45 1,589.20400‐11000F‐CU State Farm Insurance 09/27/11 04/01/15 1,402 Current 18.08 25,344 1.51 2,112.00400‐11102‐CU Jack In the Box Store, 4392 01/14/08 03/29/29 2,510 Current 32.87 82,500 2.74 6,875.00

Apr‐19 36.16 90,750 3.01 7,562.50

Apr‐24 39.77 99,825 3.31 8,318.75

Mar‐29 43.75 109,808 3.65 9,150.63400‐11200‐CU Fresh & Easy Market 09/22/07 04/30/29 13,969 Current 9.19 128,400 0.77 10,700.00

May‐19 10.11 141,240 0.84 11,770.00

May‐24 11.12 155,364 0.93 12,947.00

May‐29 12.23 170,904 1.02 14,242.00

May‐34 13.46 187,992 1.12 15,666.00400‐MISC‐CU Big Bear Fireworks 01/01/13 12/31/17 0 Current 0.00 3,000 0.00 250.00

Jan‐15 0.00 4,000 0.00 333.33

TOTALS 23,781 Total Current Base Rent Monthly: 30,833.15Total Occupied Square Feet: 23,781 Total Current Base Rent Annual: 369,997.80

Total Vacant Square Feet: 0

(Separate parcel ground leased to tenant ‐ Absolute NNN)

(Separate parcel ground leased to tenant ‐ Absolute NNN)

RENT ROLL ASOFJULY2014





Fresh & Easy introduces redesigned marketsSaturday, June 21, 2014Fresh & Easy is back, and purportedly better than ever.The small-format grocery chain, bought out by Southern California super-market magnate Ron Burkle, began a big reintroduction campaign this week, highlighting “affordable organics,” “gourmet” made-on-the-premises take-out, no artificial flavors or coloring and everything fresh as fresh can be.Burkle’s Yucaipa Cos. took 167 Fresh & Easy stores off Tesco’s hands in September - the British supermarket chain lost $1.8 billion on the venture -and closed 40-odd stores, including one in San Francisco’s Bayview district. Despite reports to the contrary, the Fresh & Easy name survives.“We set out to make our stores and our brand fresher, easier and more relevant to modern consumers who are looking for healthy, convenient options,” said Mike Evans, the chain’s head of marketing.

Courtesy of Andrew S. Ross, San Francisco Gate

Fresh&EasyNeighborhoodMarket,commonlyreferredtoasFresh&Easy,oper-atesagrocerystorechainservingtheWesternUnitedStates.Foundedin2007,Fresh& Easy operates over 180 supermarkets throughoutArizona, California,andNevada.Manylocationscarryseveralenvironmentalgoals,suchasLEEDcer-tification,LEDlights,andpreferredparkingforhybridcardrivers.Fresh&EasyNeighborhoodMarketcorporateheadquartersoperateoutofElSegundo,CA.

• PREVIOUSLYDISTRESSEDCHAINONTHERISEONCEAGAIN

• CURRENTLYOPERATINGOVER180STORELOCATIONS




ThecityofBakersfieldisrecognizedastheSouthernGatewaytotheCaliforniaCentralValley.It istheninthlargestcityinCaliforniaandoneofthefastestgrowingregionsinthenation.ThecityliesinKernCounty,anarearesponsibleforgenerating76percentofthestate’soilsupplyandranksthirdamongallcountiesintheUnitedStatesforagriculture-relatedproduction.Centrally locatedand incloseproximity to twomajorhighways, Interstate5andHighway99,andanumberofmountainpasses;BakersfieldisjustafewshorthoursfromLosAngeles,SanFranciscoandLasVegas.ThecityisalsohometoAmtrak’s12thbusieststationaswellasdepotsforBurlingtonNorthernSantaFeandUnionPacificrailroads.LocatedatthebaseofthesouthernSierraNevadaMountainsandatonly1,300feetabovesealevel,theregionbenefitsfromanearlyyearroundmoderatetowarmclimate. Thecityboastsanumberof recreationaland leisureactivities including:hiking,biking,off-roadrecreation,fishingandrafting,alongwithnumerouscountryandtennisclubsforlessnature-orientedresidents.





BRIMHALL RD 16,031 ADT

LIBERTYPARK

LIBERTY HIGH SCHOOL

(2,800 STUDENTS)

FUTURE HOME OF NEW LIFE

CHURCH & SCHOOL

JEW

ETTA

AV

E

4,5

25 A

DT

OLD

FA

RM R

D

SUBJECT

Elegant Nailsfresh&easy

Neighborhood Market

ResidentsofthecityofBakersfieldexperienceanexcellentqualityoflifedueinparttoaffordablehousing.Over71percentofthepopulationcanaffordtheirownhomeatamedianpriceof$246,298(farbelowthestatemedianof$298,307).Themap(totheright)depictsanumberofactiveand tentativeresidentialdevelopment tracts, indicating the tremendousgrowthcurrentlyunderwayintheareaaroundthecenterandthroughoutthecity.Ultimately,thisgrowthisanticipatedtoincreasethepopulationwithin1mileof thecenter from9,967 (2010census) to10,746 in2018(estimated).Theriseinpopulationwithin3milesisevenmoresignificant(from77,326to83,168)forthesameyears. �

NE

LR

IOD

R

LP

OR

TAL

DR

R IVE R R UN BLVD

PALM AV E

J OHNS ON R D

DE E R P E AK DR

G R ANIT E FALL S DR

C AMINO ME DIA

AR

LE

TO

AK

BLV

D

B R IMHALL R DRU

DD

AV

E

HA

GG

INOAKS

B

FARR

WAY

J EN

KIN

S R

D

ME AC HAM R D

JEW

ET

TAA

VE

MING AV E

B R IMHA L L R D

AL

LE

N R

D

HE

AT

H R

D

RE

NF

RO

RD

R OS E DA L E HW Y

WE S T S IDEP K W Y

Lake OhshuhLake Xahly

SUBJECT




BUSINESSANDGROWTHAneffectivepro-business localgovernmenthasgreatly incentivisedtheestablishmentofnewbusinessaswellasaidingthosealreadyestablished.Businessesarenotsubjecttolocalutilityorinventorytaxesandqualifyforanumberofcreditsincluding:hiringcredit,salestaxcredit,andexpensedeductions.Someofthecitieslargestemployersare:Chevron,Texaco,IKEA, State Farm Insurance, Catholic Healthcare West, Frito-Lay, KernSchoolsFederalCreditUnion,andWalmart.Manycompaniescontinueto relocate into theareaandpraise isconsistentlygiven to theCityofBakersfieldfortheinputandsupportthatwasgivenduringthetransitionprocess.Alargenumberofsmall-businesseshavechosenBakersfield,99percentofwhichsaidtheyplantoremaininthecity(determinedfromarecentcitysurvey).Economic diversity has greatly benefited residents of the city and hasprovided historically strong growth and an excellent outlook movingforward. Sectorsofbusinessarenotskewedtowardonemainareaasinsomeregions,butevenlydistributedbetweenservice,manufacturing,governmentandagriculture.Thisnotonlyattributestoapositiveoutlookbutone that is economically stable and able towithstand anevolvingeconomy.

AREA HIGHLIGHTS• Extremelyhospitablepro-businesslocalgovernment• Nolocalutilityorinventorytaxesforbusinesses• Numerouslocaltaxcredits• Governmentassistanceandincentivesforbusinesses

relocatingorstarting• 25%increaseinoverallworkforcesince2005


DOWNTOWNBAKERSFIELD

WHITE LN

MING AVE

KERN CITY GOLF COURSE

THE LINKS AT RIVERLAKES

RANCH

STOCKDALE HWY

BRIMHALL RD

WESTSIDE PKWY

ROSEDALE HWY

JEWETTA

AV

E

HAGEMAN RD

OLIVE DR

ALLEN

RD

JEWETTA

AVE

COFFEE RD

ALLEN

RDBUEN

A V

ISTA RD

TRUX TO N AVE

GROCERYOUTLET

FRUITVA

LE AVE

W

ALLEN

RD

OLD

FARM

RD

OLD

RIVER RD

California StateUniversity

Bakers�ield

SUBJeCTThe ShopS on BrimhallBakerSfield, California

The Shops on Brimhall is lo-cated in one of Bakersfield’sfastest growing residentialneighborhoods. Situatedacross the street from the2,920 student Liberty HighSchool and Liberty Park, aswell as within 1/2 mile ofnewlyproposedbaseballandsoccerfields(attheStockdaleHwy - Jewetta Ave intersec-tion) there is no shortage offoottrafficandvisibilityatthecenter.

The shops stand alone in adense, underserved, grow-ing residential market. Thenearest competitive grocery-anchored center is almost 2milesaway(drivingdistance),andisitselftheonlygrocery-anchoredcenterinasimilarlyunderservedmarket.


COPYRIGHT © 2014 ALL RIGHTS RESERVED. CORE Commercial (“Agent”), CA DRE Lic. 01904661, has presented this brief, selected information pertaining to the Property and shall not be considered all-inclusive or unchanged since the date of preparation. No warranty as to the accuracy or completeness is expressed or implied. The information has been received from sources believed to be reliable but is not guaranteed. Prospective Tenants should independently verify each item of information and have the same reviewed by its tax advisor and/or legal counsel. The Property is being leased on an “as-is, where-is” and “with all faults” basis unless otherwise specified.

5 miles

127,508186,658192,319

1,038204,338

1.22%

64,2802.89

65,7502.91

69,4592.93

1.10%48,215

3.3249,274

3.3552,039

3.371.10%

68,65863.5%30.2%6.4%

70,86761.8%31.0%7.2%

75,38162.4%29.7%7.9%

$72,698$83,264

$219,201$228,560

33.433.834.6

Median Age2010 38.6 35.32013 39.4 35.82018 40.0 36.5

Median Home Value2013 $257,316 $245,8632018 $253,040 $253,430

Renter Occupied Housing Units 23.8% 24.1%Vacant Housing Units 6.0% 7.1%

Median Household Income2013 $80,952 $84,1812018 $92,550 $96,666

Owner Occupied Housing Units 69.7% 68.2%Renter Occupied Housing Units 24.4% 25.2%Vacant Housing Units 5.9% 6.6%

2018 Housing Units 4,257 30,304Owner Occupied Housing Units 70.2% 68.8%

2010 Housing Units 3,985 28,127Owner Occupied Housing Units 71.3% 70.0%Renter Occupied Housing Units 23.0% 24.3%Vacant Housing Units 5.7% 5.6%

2013 Housing Units 4,058 28,714

2013 Average Family Size 3.34 3.292018 Families 2,999 21,646

2018 Average Family Size 3.35 3.302013-2018 Annual Rate 0.93% 0.98%

Housing Unit Summary

2018 Average Household Size 2.89 2.902013-2018 Annual Rate 0.94% 0.97%

2010 Families 2,825 20,4162010 Average Family Size 3.32 3.27

2013 Families 2,864 20,617

2010 Households 3,759 26,5412010 Average Household Size 2.86 2.86

2013 Households 3,817 26,8242013 Average Household Size 2.87 2.88

2018 Households 4,001 28,143

2018 Total Population 11,575 82,0192013-2018 Annual Rate 1.02% 1.08%

Household Summary

Population Summary 2000 Total Population 6,425 48,5942010 Total Population 10,778 76,4602013 Total Population 11,004 77,735

2013 Group Quarters 32 476

1 mile 3 miles

The ShopS on BrimhallBakerSfield, California AREADEMOGRAPHICPROFILE

1,3,5MILERADII

STATEANDNATIONALGROWTHCOMPARISONThe Shops on Brimhall Prepared by Mark Denholm11000 Brimhall Rd, Bakersfield, California, 93312, Latitude: 35.368883764Ring: 5 mile radius Longitude: -119.1240954

Demographic and Income Profile

AreaStateUSA

Trends 2013-2018

Population Households Families Owner HHs Median HH Income

Ann

ual R

ate

(in

perc

ent)

3.5

3

2.5

2

1.5

1

0.5

0

20132018

Population by Age

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

Perc

ent

14131211109876543210

dataprovidedbytheU.S.CensusBureauandEsri2013and2018forecasts


Documents

fresh easy ADDITIONAL OFFERING MEMORANDUM TENANTS · John DuBois. 916. 274. 4424 [email protected] CA DRE #00702547. Mark Denholm. 916. 274. 4404 [email protected] CA DRE #01437366. INVESTMENT