Montclair Town Center Broker: Eric Treibatch€¦ · Marketing Brochure has been obtained from sources we believe to be reliable; however, Ophir Management Services has not verified,

Montclair Town CenterOffering Memorandum

Broker: Eric TreibatchBroker Corp ID No. 01187117(818) 708-0888 [email protected]

The information contained in this Marketing Brochure is strictly confidential and is intended to be reviewed only by the party receiving it from Ophir Management Services. This information should not be made available to any other person without the written consent of Ophir Management Services. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers and to establish only a preliminary

interest in the subject property. The information in this Marketing Brochure is not a substitute for a thorough due diligence investigation. Ophir Management Services 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, the compliance with State and Federal regulations, the physical condition of the improvements, or the financial condition or business prospects of any tenants, including tenants’ plans or intentions to continue occupancy at the subject property. The information contained in this

Marketing Brochure has been obtained from sources we believe to be reliable; however, Ophir Management Services has not verified, and will not verify, any of the information contained herein. Ophir Management Services 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 contained herein.

48,000 Vehicles per Day

Montclair Town Center

9710 - 9886 Central Avenue

Montclair, CA 91763

Price:

Net Operating income:

CAP (Current):

CAP (Proforma):

GLA:

Price/SF:

Occupancy:

Lot Size:

Parking:

$18,150,000

$1,186,291

6.54%

9.39%

97,033 SF

$187.00

77%

9.67 Acres

513 (over 5:1)

Executive Summary - Investment Data

Financing Summary:

All Cash / Cash to New Financing / Loan Assumption

EFFECTIVE GROSS INCOME (1):

Operating Expenses:

CAM:

Property Taxes:

Insurance:

TOTAL OPERATING EXPENSES:

NET OPERATING INCOME:

$1,660,520

$258,038

$196,233

$19,958

$474,229

$1,186,291

(1) EGI as of 12//2018

EFFECTIVE GROSS INCOME $1,660,520 $1,660,520 $2,303,276

OPERATING EXPENSE ($474,229) ($474,229) ($518,657)

NET OPERATING INCOME $1,186,291 $1,186,291 $1,784,619

PRICE $18,150,000 $18,150,000 $18,150,000

DEFEASANCE PMT (approx.) $850,000 $850,000

PRICE (IF DEFEASED) $19,000,000 $19,000,000

CAP 6.54% 6.24% 9.39%

PRICE/SF $187 $187 $187

DOWN PAYMENT 50% $9,000,000 35% $6,650,000 35% $6,650,000

LOAN 50% $9,150,000 65% $12,350,000 65% $12,350,000

***DEBT SERVICE 4.57% ($418,155) 4.85% ($598,975) 4.85% ($782,039)

CASH FLOW $768,136 $587,316 $1,002,580

CASH ON CASH 8.53% 8.83% 15.08%

Loan AssumptionLOAN ASSUMPTION VS

NEW FINANCING

New Financing Proforma

12/2018 12/2018 2028

Investment / Financing Overview

Pre-Payment / Defeasance:

$850,000 (approx.)

ExistingFinancing:

CMBS Loan Assumption• 4.57% I/O Entire Term

• Due 2024

• Annual Pmt: $418,155

• Loan Bal: $9,150,000

• Down Pmt: $9,000,000

NewFinancing:

• 4.50% I/O yrs 1-3

• 10 Year

• Annual Pmt: $556,218

• Loan: $12,360,400

• Down Pmt: $6,655,600

Buyer to either assume existing financing or place new debt.

See Below:

Executive Summary - Investment Overview

• Ophir Management Services has been selected to exclusively market for sale the Montclair Town Center, a 97,033 square foot multi‐tenant shopping center located on a major thoroughfare in Montclair, California. With ideal demographics and density, Montclair Town Center sits on approximately 10 acres of land.

• Montclair Town Center presents the new Owner the opportunity to purchase a cash‐flowing investment with significant upside through leasing vacant space (15%).

• Major Tenants include 24 Hour Fitness, Dollar General, Burger King, Bank of America and Yum Yum Donuts.

• Included in the sale is the opportunity to assume an interest only loan not due until 2024. This loan increases cash‐flow and allows the new owner to retain capital for capital Improvements. Buyer also has the option to defease the current debt and significantly increasing LTV.

Executive Summary - Investment Highlights

• Pure Value‐Add Investment Opportunity

• Situated on Central Avenue, the main North/South arteries for the city of Montclair

• Two Signalized Intersections (Central Avenue at Benito Street and San Bernardino Street)

• 48,000 Cars per Day at Signalized Intersection

• Easily Accessible; Half Mile from Interstate 10

• Burger King Lease expiration will allow buyer to increase rent exponentially

• Four Separate Parcels allows for Flexible Future Disposition Strategies

• Future Drive‐Through PAD Opportunity along Central Avenue

• Parking Ratio over 5:1

Property Description – Area Maps

General Information

Property Description – Property Details

PROPERTY Montclair Town Center

ADDRESS 9710-9886 Central Ave Montclair, CA 91763

GLA 97,033 SF

YEAR BUILT 1980 & 1986

ZONING C-3

APNs 1010-041-77, 80, 79, 78

LOT SIZE 9.67 AC

PARKING 513 spaces (5.31/1,000)

Property Description – Area Maps

Property Description – Site Plan

9880

9870

9860 9850

9828

9818

9814

9790

9748

9746

9744

9738

9736

9734

9732

9730

9886

9876

98789804 9802 9710

Not a Part

Not a Part

Nith

yana

ndeshw

ara Hindu

Tem

ple

9816

9812

5220

5230

9810

97409840

VACANCIES FUTURE PAD DEVELOPMENTCONTACT LISTING AGENTS FOR DETAILS

UNIT # UNIT SIZE5230 1,381 SF5220 1,361 SF9816 1,214 SF9812 1,220 SF9810 1,797 SF9840 8,050 SF9870 5,275 SF9748 1,832 SF

Property Description – Parcel Map

CENTRAL AVENUE

BENITO STR

EET

SAN BERN

ARDINO STREET

1010‐041‐77 1010‐041‐791010‐041‐78

1010‐041‐80

Unit Tenant Sq. Ft. N N N Lease From Lease Expire

Security Deposit Rent/SqFt Rent NNN/SqFt NNN Total/SqFt Total Rent Increase

Date Increases Options

9730 Bank of America 905 0.93% 8/10/2001 11/30/2021 0.00 1.72 1,559.34 0.50 449.00 2.22 2,008.34 12/1/2019 Annually as of 12/01-2% inc 2X5 years

9732 Consuelo & Arellanez 905 0.93% 12/3/2010 4/30/2020 2,000.00 1.49 1,350.00 0.50 449.00 1.99 1,799.00 5/1/2019 Annually fixed-4% none

9734 Rose Spa 1,201 1.24% 11/28/2012 11/30/2022 10,077.00 1.61 1,934.02 0.50 596.00 2.11 2,530.02 12/1/2019 fixed 3% none

9736 J'S Cleaners 1,185 1.22% 8/1/2013 7/31/2018 2,000.00 1.58 1,868.34 0.50 588.00 2.07 2,456.34 annually -3% 1 X 5 years

9746 Rise Above Studios 1,164 1.20% 11/21/2012 4/30/2020 2,000.00 1.45 1,687.00 0.50 578.00 1.95 2,265.00 5/1/2019 annually fixed-3% none

9818 Ferndog's Barber Shop 625 0.64% 10/14/2004 10/31/2019 1,000.00 1.99 1,243.75 0.50 310.00 2.49 1,553.75 11/1/2019 $50 annually none

9804 First Dental Group 3,293 3.39% 11/1/2003 10/31/2023 4,080.00 2.11 6,955.64 0.49 1,606.00 2.60 8,561.64 10/1/2019 Annually fixed 3% none

9802 Lucky Laundry 3,115 3.21% 2/1/2011 1/31/2021 0.00 1.84 5,746.59 0.43 1,347.00 2.28 7,093.59 2/1/2019 Annually -3% 1 X 5 years@FMV

9828 Bienvenidos Children's Center 5,844 6.02% 5/6/2002 4/30/2023 6,000.00 1.18 6,896.00 0.49 2,859.00 1.67 9,755.00 5/1/2019 Annually fixed-3% none

9850 T Shirt Factory Warehouse (1) 5,458 5.62% 4/30/2007 9/30/2023 6,250.00 1.16 6,325.00 0.48 2,595.00 1.63 8,920.00 9/1/2019 Annually fixed 3% 1X5 years-3%

9876-78 Prime Time Realty 3,000 3.09% 3/30/2012 12/31/2018 0.00 1.74 5,218.00 0.50 1,486.00 2.23 6,704.00 Annually Fixed -3% 1 X5 years@FMV

9886 Yum Yum Donuts 1,308 1.35% 9/1/2002 8/31/2022 0.00 2.99 3,906.28 0.49 645.00 3.48 4,551.28 9/1/2019 Annually fixed 2.5% none

9860 Dollar General Stores 15,892 16.38% 8/12/2011 2/28/2022 0.00 0.76 12,011.70 0.36 5,770.00 1.12 17,781.70 2 X5 @10%

9790 24 Hour Fitness, Inc. 20,389 21.01% 9/15/2006 9/30/2021 0.00 1.69 34,527.55 0.29 5,818.00 1.98 40,345.55 10/1/2021 Fixed each 60 month

3X5 years. Rent fixed

9738 ESI Insurance 1,203 1.24% 6/1/2002 8/31/2019 1,500.00 1.80 2,166.00 0.50 596.00 2.30 2,762.00 9/1/2019 Annually fixed-3% none

9744 EZ Cash 1,207 1.24% 8/1/2006 12/31/2020 2,500.00 1.43 1,726.00 0.49 597.00 1.92 2,323.00 1/1/2019 none

9710 Burger King Corp #2893 2,717 2.80% 9/17/1979 5/20/2020 0.00 1.70 4,605.42 0.11 306.00 1.81 4,911.42 none

9880 Medical office of Dr.Do 1,875 1.93% 5/12/2014 9/30/2019 3,500.00 1.58 2,954.46 0.49 922.00 2.07 3,876.46 10/1/2019 Annually fixed -3% 1X5 @3%

9814 Kittens Salon 1,200 1.24% 6/15/2017 6/14/2022 3,504.00 1.15 1,375.50 0.42 504.00 1.57 1,879.50 6/15/2019 Annually 5% 1@5years

9740/42 Artesia Overstock 2,417 2.49% 12/1/2017 9/30/2022 5,865.60 1.43 3,465.00 0.00 0.00 1.43 3,465.00 12/1/2019 Annual -5% none

9748 VACANT 1,832 1.89% 0.00 0.00 0.00 0.00 0.00 0.00 0.00

9840 VACANT 8,050 8.30% 0.00 0.00 0.00 0.00 0.00 0.00 0.00

9870 VACANT 5,275 5.44% 0.00 0.00 0.00 0.00 0.00 0.00 0.00

9816 VACANT 1,214 1.25% 0.00 0.00 0.00 0.00 0.00 0.00 0.00

9812 VACANT 1,220 1.26% 0.00 0.00 0.00 0.00 0.00 0.00 0.00

5220 VACANT 1,361 1.40% 0.00 0.00 0.00 0.00 0.00 0.00 0.00

5230 VACANT 1,381 1.42% 0.00 0.00 0.00 0.00 0.00 0.00 0.00

9810 VACANT 1,797 1.85% 0.00 0.00 0.00 0.00 0.00 0.00 0.00

9720 Nithyananda Temple NAP 2,485.90 2,485.90

97,033 50,276.60 1.11 107,521.58 30,506.90 138,028.48

Occupied 74,903 77%Vacant 22,130 23%

(1) Assume Tenant excercises option current rent for additional 5 years

As of 12/31/2018

TOTAL

Rent Roll Montclair Town Center

Financial Overview – Rent RollR

ental Increases Accelerated through D

ec 2018

24 Hour Fitness was founded in 1983 and has become a global leader in fitness. With over 400 locations nationwide, as well as 15 international locations, 24 Hour Fitness employs over 20,000 people and hosts over 4 million members.

Dollar General Corporation sells various merchandise products throughout the United States. It operates over 10,500 stores and, in 2007, was acquired by a private equity company who took the company public in 2009. Dollar General remains extremely competitive with both name brand and generic merchandise.

Burger King is the second largest hamburger fast food chain in the world. It serves over 11 million customers daily. With over 13,000 locations in 89 countries, Burger King has sold fast and affordable food since 1954.

Bienvenidos is a foster care program providing community and medical services to individuals and families. It serves over 19,000 parents, children and families, through its 13 Los Angeles area locations.

Liberty Tax is the third-largest income tax preparation chain in the United States providing electronic tax preparation through more than 4,500 locations. The company’s eSmart Tax product assists customers with filing taxes online. Liberty Tax also offers courses, loans, audit assistance, and other financial services.

Financial Overview – Tenant Summaries

T-Shirt Warehouse is a family owned retail store with locations in Montclair and Pomona. They are also affiliated with Kings Boardshop, a similar clothing store catering to the skate and surfing lifestyle.

Yum Yum Donuts began in 1971 and has grown to one of the largest donut chains in the nation. In 2004 it purchased Winchell’s Donuts, the largest donut chain in the West Coast. It continues to serve fresh and inexpensive sweets and has been selling franchises since 1982.

First Dental Group was established in 1995 by University of Southern California graduates. First Dental offers the Western San Bernardino County area a variety of services, including general, restorative and cosmetic dentistry.

MajorTenants

24 Hour Fitness

Dollar General

Burger King

Yum YumDonuts

SUBJECT PROPERTY: Montclair Town Center9710‐9886 Central Ave Montclair, CA 91763

Asking Price: $18,150,000

CAP: 6.54%

Price/SF: $187.00

Price/SF Land: $40.00

Gross Leasable Area: 97,033 SF

Year Built/Renovated: 1980 & 1986

Comparable Properties – Recent Sales

MajorTenants

Jersey Mike’s

Pizza Hut

One Main Fin.

La Verne Dental

COMP 1: La Verne Courtyard2204 – 2278 Foothill Blvd., La Verne, CA 91750

Close of Escrow: March 28, 2018

Sale Price: $18,259,685

CAP: 6.29%

Price/SF: $246.00



Occupancy: 90%

Year Built/Renovated: 2001

MajorTenants

Planet Fitness

COMP 3: Planet Fitness and Shops2057 Rancho Valley Rd, Pomona, CA 91766

Close of Escrow: July 16, 2017

Sale Price: $8,803,000

CAP: 5.07 %

Price/SF: $369.00

Price/SF Land: Not Available

Gross Leasable Area: 23.876 SF

Occupancy: 100%



Major Tenants

Jack in the Box

Planet Smoothie

Day/Nite Copy

COMP 2: Walnut / North Grand Ave1205 – 1243 N. Grand Ave, Walnut, CA 91789

Close of Escrow: May 31, 2018

Sale Price: $9,644,842

CAP: Not Available

Price/SF: $477.18



Occupancy: 95%


MajorTenants

T‐Mobile

Fantastic Sam’s

Wingstop

Panda Express

COMP 4: Marshall’s Plaza2317‐2371 Foothill Blvd La Verne, CA 91750

Close of Escrow: July 27, 2016

Sale Price: $14,000,000

CAP: Not Available

Price/SF: $218.75



Occupancy: 100%



SUBJECT PROPERTY: Montclair Town Center9710‐9886 Central Ave Montclair, CA 91763

Date Surveyed: 2018

Occupancy: 82%

Average Rent/SF: $1.53


Available SF: 17,406 SF

Lease Type: NNN

Use: Retail

COMP 1: Central Ave Shops9303‐9407 Central Ave Montclair, CA 91763

Date Surveyed: 2018

Occupancy: 95.6%

Asking Rent/SF: $3.25


Available SF: 897 SF

Lease Type: NNN

Use: Retail

MajorTenants

Starbucks

AT&T

Jersey Mike’s

Burgerim

Comparable Properties – 1 Mile Rent Survey

MajorTenants24 Hour Fitness

Dollar General

Burger King

Yum YumDonnuts

COMP 3: Central Ave Retail9885 Central Ave Montclair, CA 91763

Date Surveyed: 2018

Occupancy: 71.66%



Available SF: 992 SF

Lease Type: NNN

Use: Retail

Comparable Properties – 1 Mile Rent Survey

Major Tenants

Metro PCS

Dominos

MajorTenants

Boba & Tea

COMP 2: Central Ave Retail9015 Central Ave, Montclair, CA

Date Surveyed: 6/2018

Occupancy: 90%



Available SF: 1,300 SF

Lease Type: NNN

Use: Retail

Broker: Eric TreibatchBroker Corp ID No. 01187117(818) 708-0888 [email protected]

Documents

Montclair Town Center Broker: Eric Treibatch€¦ · Marketing Brochure has been obtained from sources we believe to be reliable; however, Ophir Management Services has not verified,