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Kohl’s8 5 0 1 L a u r e l C a n y o n B l v d .
S u n V a l l e y , C A 9 1 3 5 2
E X C L U S I V E L Y L I S T E D B Y
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Kohl’s8 5 0 1 L a u r e l C a n y o n B l v d
S u n V a l l e y , C A 9 1 3 5 2
EL WARNER EVP & National [email protected] 949.873.0507MOB 858.752.3078LIC NO. 01890271 (CA)
DEVON [email protected] 949.432.4517MOB 310.808.3596LIC NO. 01981609 (CA)
KYLE MATTHEWSChairman & [email protected] NO. 01469842 (CA)
T A B L E O F C O N T E N T SASSET OVERVIEW PROPERTY DETAILS
AREA OVERVIEW
TENANT REPORT
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ASSETOVERVIEW
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OFFERING SUMMARY
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Matthews Real Estate Investment Services is pleased to present the fee
simple sale of Kohl’s, located in the city of Sun Valley, California. The property
is just off of the 5 Freeway and is situated on Laurel Canyon Boulevard. The
property benefits from its location in the San Fernando Valley within a densely-
populated submarket with strong demographics. This property is an excellent
opportunity for an investor to acquire a NNN investment grade tenant, 100%
leased to Kohl’s with no landlord responsibility. Kohl’s is shadow anchored
by a strong performing Ralph’s anchored shopping center, which brings in
additional consumers to the trade area. With strong rent growth each year,
this property is an ideal exchange candidate that provides both stability
and ease of management.
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• Kohl’s has strong volumes and is an investment grade tenant
• Shadow anchored by high-performing Ralph’s anchored center
• Kohl’s has 8 years remaining and is only paying $9.76 PSF
• Located in LA County
• ± 698,000 residents within a 5-mile radius
• Absolute NNN, no Landlord responsibility
• Attractive 1.2% annual increases in the base term and in option periods
• Located right off the Golden State Freeway (5 Freeway), which sees traffic counts of 200,000+ ADT
• Adjacent to Francis Polytechnic Senior High School and Byrd Middle School and near the Fernangeles Recreation Center
• Offered free and clear of debt
Investment Highlights
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FINANCIALS
T E N A N T S U M M A R Y
Tenant Trade Name Kohl's Department Stores, Inc.
Type of Ownership Fee Simple
Lease Type NNN
Roof and Structure Tenant Responsible
Original Lease Term 20 Years
Lease Commencement Date September 23, 2005
Lease Expiration Date September 30, 2025
Term Remaining on Lease ±8 Years
Increases 1.2% Per Lease Year
Options Two (2), Five (5) Year Options
One (1), Four (4) Year and Six (6) Mos Option
A N N U A L I Z E D O P E R A T I N G D A T AM o n t h l y R e n t A n n u a l R e n t R e n t / S F C a p R a t e
10/1/2017 - 9/30/2018 $70,114 $841,369 $9.87 6.57%
10/1/2018 - 9/30/2019 $70,955 $851,465 $9.99 6.65%
10/1/2019 - 9/30/2020 $71,807 $861,683 $10.11 6.73%
10/1/2020 - 9/30/2021 $72,669 $872,023 $10.23 6.81%
10/1/2021 - 9/30/2022 $73,541 $882,487 $10.36 6.89%
10/1/2022 - 9/30/2023 $74,423 $893,077 $10.48 6.98%
10/1/2023 - 9/30/2024 $75,316 $903,794 $10.61 7.06%
10/1/2024 - 9/30/2025 $76,220 $914,639 $10.73 7.15%
Option 1 $77,135 $925,615 $10.86 7.23%
Option 2 $81,875 $982,501 $11.53 7.68%
Option 3 $86,907 $1,042,883 $12.24 8.15%
List PriceCap RateGross Leasable AreaLot SizeYear Built / Renovated
$12,800,0006.57%
± 85,212± 6.42
1979 / 2003
E X E C U T I V E S U M M A R Y
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L E A S E A B S T R A C T
Tenant Kohl's Department Stores, Inc., a Delaware Corporation
Land Size (AC) 6.42
Building Size (SF) 85,212
Beginning of 1st Year September 23, 2005
Expiration Date September 30, 2025
Lease Term (Base Lease) 240 Months
*'Remaining Lease Term (Base Lease) 96 Months
No. & Term of OptionsTwo (2), Five (5) Year Options
One (1), Four (4) Year and Six (6) Mos Option
Contract Rental Rate Total $/Yr.
10/1/2017 - 9/30/2018 $841,369
Escalations 1.2% Per Lease Year
Lessor Expenses None
Lessee ExpensesAll - Tenant assumes the full and sole responsibility for the condition, operation, repair, alteration,
improvement, replacement, maintenance and management of the Premises.
% Rent Clause: During the extension periods only, an amount equal to two percent (2%).
PROPERTYDETAILS
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P R O P E R T Y I N F O R M A T I O NProperty Name Kohl’s
Address 8501 Laurel Canyon Blvd
Location Sun Valley, CA 91352
Cross Street Roscoe Blvd
Square Footage (GLA) ± 85,212 SF
Land Area ± 6.42 Acres (279,655 SF)
APN(s) 2633-006-017
Year Built / Renovated 1979 / 2003
Type of Ownership Fee Simple
Zoning P. Los Angeles
Number of Stories 2
Parking Spaces ± 565
Parking Ratio 6.6 : 1,000 SF
PROPERTY DETAILS
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SURROUNDING TENANTS
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TRAFFIC COUNTSLaurel Canyon Blvd: ± 19,000 ADTRoscoe Blvd: ± 32,000 ADT
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AREAOVERVIEW
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LOS ANGELES, CAHip and historic, the city of Los Angeles is a global city with a diverse economy that is driven by international trade, entertainment, aerospace, technology, petroleum, fashion, apparel, and tourism. It is the focal point of the larger Los Angeles metropolitan area and the Greater Los Angeles Area region.
Los Angeles is the largest manufacturing center in the western United States due to its geographic location. The contiguous ports of Los Angeles and Long Beach together comprise the fifth-busiest port in the world and the most significant port in the Western Hemisphere: It is vital to trade within the Pacific Rim. Overall, Los Angeles is teeming with career opportunities. The city is on the leading edge of several growth industries and is emerging as a leader in the expanding tech industry.
FORTUNE 500 COMPANIESOccidental Petroleum
Health Net
Reliance Steel & Aluminum
AECOM
CBRE
BUSIEST PORT IN THE WORLDHOME TO THE 5TH
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Known as the “Valley of the Stars”, Southern California’s San Fernando Valley encompasses the cities of Burbank, Calabasas, Glendale, Los Angeles, and San Fernando, among many others; About 80% of the San Fernando Valley is part of the city of Los Angeles. The valley is a special place, offering a small-community way of life alongside world-class business, commercial, employment and visitor opportunities.
Featuring a strong and well-diversified economy, the Valley is home to numerous large employers, including some 50,000 businesses employing over 700,000 workers, the most well-known of which are involved in motion pictures, recording, and television production as well as the medical and biotech industries.
SAN FERNANDO VALLEY
C o m p a n y N a m e C i t y
COMPANY HEADQUARTERS
Burbank
Burbank
North Hollywood
Glendale
Thousand Oaks
Woodland Hills
Glendale
Glendale
Westlake Village
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Walt Disney Co.
Warner Bros.
Universal Studios, Inc.
DreamWorks Animation SKG, Inc.
Amgen Inc.
Health Net Inc.
DineQuity Inc.
Public Storage Inc.
Dole Food Co.
Health Net
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SUN VALLEY, CA
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Situated at the base of the Verdugo Mountains, Sun Valley is a neighborhood in the San Fernando Valley region of Los Angeles. Known for its overall youthful and diverse population, Sun Valley is home to the Consulate-General of the Dominican Republic in the County of Los Angeles. The neighborhood is bordered on the northeast by Shadow Hills, on the southeast by Burbank, on the south by North Hollywood and Valley Glen, on the west by Panorama City and on the northwest by Pacoima, Hansen Dam, and Lake View Terrace, providing ample employment, shopping and dining opportunities for residents.
P R O P E R T Y D E M O G R A P H I C SP o p u l a t i o n 1 - M I L E 3 - M I L E 5 - M I L E
2022 Projection 24,316 248,523 727,905
2017 Estimate 23,338 239,462 698,445
Growth 2017 - 2022 4.19% 3.78% 4.22%
H o u s e h o l d s 1 - M I L E 3 - M I L E 5 - M I L E
2022 Projection 5,675 66,049 220,938
2017 Estimate 5,472 63,673 211,698
Growth 2017 - 2022 3.71% 3.73% 4.36%
I n c o m e 1 - M I L E 3 - M I L E 5 - M I L E
2017 Est. Average Household Income $66,094 $65,990 $70,824
DISTANCE TO:
NORTH HOLLYWOOD4.0 MILES
BOB HOPE AIRPORT6.2 MILES
BURBANK8.0 MILES
DOWNTOWN LOS ANGELES18.2 MILES
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THE NEIGHBORHOODSun Valley has three recreation centers, one of which is a historic site, and thirteen public schools, including John H. Francis Polytechnic High School and Sun Valley High School and four private schools. 8501 Laurel Canyon Boulevard is within walking distance of two of the neighborhood’s schools and one of the recreation centers.
METROLINKServed by Metrolink’s Antelope Valley Line from Los Angeles Union Station to Lancaster, the Sun Valley Metrolink Station is a Metrolink rail station in the community of Sun Valley.
The rail station is about 2.0 miles from the subject property, a 7 minute drive.
Pacifica Hospital of the Valley is a major healthcare provider to adults and children in the San Fernando Valley. Offering a full range of inpatient and outpatient services, the hospital is a 231-bed acute care facility.
28 WEEKDAY TRAINS / 12 WEEKEND TRAINS
FERNANGLES RECREATION CENTER0.4 MILES - 8 MINUTES WALKING DISTANCE
FRANCIS POLYTECHNIC SENIOR HIGH 0.6 MILES - 12 MINUTES WALKING DISTANCE
BYRD MIDDLE SCHOOL0.9 MILES - 17 MINUTES WALKING DISTANCE
PACIFICA HOSPITAL OF THE VALLEY
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TENANTREPORT
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kohl’s Overview
T E N A N T R E P O R TParent Company Trade Name Kohl’s Department Store, Inc. (NYSE: KSS)
Ownership Public
Credit Rating (S&P’s) BBB-
Revenue $19.023 B
No. of Locations ± 1,162
No. of Employees ± 32,000
Headquartered Menomonee Falls, WI
Website www.kohls.com
Year Founded 1962
Kohl’s operates about 1,162 discount department stores in 49 states. Nearly half of its stores are in the Midwest and West, where Kohl’s continues to grow while rapidly expanding into other markets. Moderately priced name-brand and private-label apparel, shoes, accessories, and housewares are sold through centrally located cash registers, designed to speed checkout and keep staff costs down. Kohl’s competes with discount and mid-level department stores. Merchandising relationships allow Kohl’s to carry top brands (NIKE, Levi’s, OshKosh B’Gosh) not typically available to discounters. To support its brick-and-mortar and online businesses, Wisconsin-based Kohl’s maintains a network of more than a dozen distribution centers nationwide. During the important holiday selling season, the apparel chain ships selected online orders from its store distribution centers rather than its e-commerce fulfillment centers. The company also operates design studios in New York City and in Santa Monica, California.
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C O N F I D E N T I A L I T Y & D I S C L A I M E R S T A T E M E N T :
This Offering Memorandum contains select information pertaining to the business and affairs of Kohl’s located at 8501 Laurel Canyon Blvd, Sun Valley, CA 91352 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1 . The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to
the interest of the Seller.
Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketingor sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
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Kohl’s8 5 0 1 L a u r e l C a n y o n B l v d .
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E X C L U S I V E L Y L I S T E D B YEL WARNER EVP & National [email protected] 949.873.0507MOB 858.752.3078LIC NO. 01890271 (CA)
DEVON [email protected] 949.432.4517MOB 310.808.3596LIC NO. 01981609 (CA)
KYLE MATTHEWSChairman & [email protected] NO. 01469842 (CA)