OFFERING MEMORANDUM - LoopNet · 2017. 3. 27. · 3 CHASE BANK The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for

MISSION VIEJO, CALIFORNIAOFFERING MEMORANDUM

OFFERING MEMORANDUMMISSION VIEJO, CALIFORNIA

EXCLUSIVELY LISTED BY:

Kevin T. FrymanExecutive Vice [email protected] | BRE #01321833

Edward B. [email protected] | BRE #01118569

TABLE OF CONTENTS:Offering Summary 3

Investment Highlights 4

Location Highlights 5

Lease Summary 8

Site Plan / Parcel Map 9

Aerial Overviews 10

Regional Map 13

Tenant Profile 14

Area Overviews 15

Demographics 17

3

CHASE BANK

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

LOCATION

Chase Bank26971 Crown Valley Pkwy Mission Viejo, CA 92691

OFFERING SUMMARY

Price: $7,840,000

Capitalization Rate (Current): 4.00%

Capitalization Rate (2020): 4.40%

Net Operating Income: $313,515

Net Rentable Area: 7,050

Year Built: 1983

Lot Size (Acres): 0.33

Lot Size (Square Feet): 14,162

FINANCING SUMMARY

All Cash or Cash to New Financing

(Contact Hanley Investment Group for Further Details)

OFFERING SUMMARY

4

CHASE BANK


INVESTMENT HIGHLIGHTS

yy Orange County Single-Tenant Absolute NNN Chase Bank with Drive-Thru

yο In 2015, Chase executed a new 10-year lease extension

yο 10% rental increases every 5 years during the primary term and option periods

yο 17-year successful operating history at subject property location since 2000

yο Strong deposits of $110 million

yο Publicly traded company (NYSE:JPM); investment grade credit rating (S&P: A-)

yο Largest consumer bank in the United States; more than $2.4 trillion in assets and 5,700+ branch locations

yο Ranked #5 on Forbes 2016 list of “World’s Biggest Public Companies”

yy Rare Orange County Location with Over 312,000 People within 5 Miles

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CHASE BANK


LOCATION HIGHLIGHTS

yy Shared signalized intersection with The Shops at Mission Viejo Mall, anchored by Nordstrom and Macy’s, as well as the destination oriented Kaleidoscope, anchored by LA Fitness and Edwards Theatre

yy Located across from Mission Hospital, the largest hospital in Orange County with the region’s designated trauma center. Mission Hospital has 102,000 annual outpatient visits, 70,000 ER visits, 20,000 admissions, and 2,700 employees

yy Affluent household income of over $146,000 within 3 miles

yy Excellent visibility along Crown Valley Parkway with over 65,000 cars per day

yy Freeway accessible location one block from Interstate 5 on/off ramps

yy High barriers to future development due to a lack of available land

yy Additional traffic draw from nearby Saddleback College with enrollment of over 26,000 students

6

CHASE BANK


SHOPS AT MISSION VIE JO MALL | NOT A PART

THE SHOPS AT MISSION VIEJO MALL: 150 stores and over 1.1 million square feet of retail floor area located directly across the street from the subject property

7

CHASE BANK


K ALEIDOSCOPE COURT YARDS MALL | NOT A PART

KALEIDOSCOPE COURTYARDS MALL

N

8

CHASE BANK


LEASE SUMMARY

LEASE SUMMARY

Tenant: Chase Bank

Lease Commencement: July 18, 2000

Lease Expiration: October 1, 2025

Lease Type: Fee Simple Absolute NNN

Annual Rent: $313,515

Net Rentable Area: 7,050

Monthly Rent Per Square Foot: $3.71

REIMBURSEMENTS

Rental Increases: 10% Every 5 Years

Renewal Options: Two 5-Year @ 10% Increases

Property Taxes: Tenant Responsibility

Insurance: Tenant Responsibility

Common Area Maintenance: Tenant Responsibility

Repairs & Maintenance: Tenant Responsibility

Roof and Structure: Tenant Responsibility

9

CHASE BANK


SITE PLAN / PARCEL MAP

PUERTA REAL

LA ALAMEDA

SUBJECT PROPERTY

APN: 761-271-05

CROWN VALLEY PARKWAY

OFFICE &MEDICAL

FOUR STORY OFFICE

DRIVE-THRU

N65,000 CPD

SUBJECTPROPERTY

• Subject Property Benefits from Shared Parking

10

CHASE BANK


AERIAL OVERVIEW

2016 DEMOGRAPHICS

Population:1-Mile Radius 10,2743-Mile Radius 127,4715-Mile Radius 311,958

Household Income:1-Mile Radius $117,8953-Mile Radius $146,2495-Mile Radius $132,556

LADERA RANCH- AVERAGE HOUSEHOLD INCOME: $164,000 -

- MEDIAN HOME PRICE: $1,868,000 -

SADDLEBACK COLLEGE- 25,000 STUDENTS -

SUBJECTPROPERTY

N

THE SHOPS AT MISSION VIEJO MALL

CROW

N VALLEY PARKWAY


PUERTA REAL

LA A

LAM

EDA

65,000 CPD

MISSION VALLEY MEDICAL CENTER

- PLANNED 108,000 SF CLASS A OFFICE & PARKING GARAGE -

11

CHASE BANK


AERIAL OVERVIEW

N

NELLIE GAIL RANCH- AVERAGE HOUSEHOLD INCOME: $141,000-

- MEDIAN HOME PRICE $1,725,000 -

SUBJECTPROPERTY

LAGUNA BEACHCATALINA ISLAND- 5 MILES TO OCEAN -



CROW

N VALLEY PARKWAY65,000 CPD

258,000 CPD

APEX LAGUNA NIGUEL- 284 APARTMENT UNITS -

- COMPLETED IN 2015 -

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CHASE BANK


AERIAL OVERVIEW

SADDLEBACK COLLEGE- 25,000 STUDENTS-

SUBJECTPROPERTY

DANA POINT


CROWN VALLEY PARKWAY

N

65,000 CPD 258,000 CPD


SAN CLEMENTE

MISSION VALLEY MEDICAL CENTER

- PLANNED 108,000 SF CLASS A OFFICE & PARKING GARAGE -

APEX LAGUNA NIGUEL- 284 APARTMENT UNITS -

- COMPLETED IN 2015 -

13

CHASE BANK


REGIONAL MAP

N

SUBJECTPROPERTY

DANAPOINT

14

CHASE BANK


TENANT PROFILE

JPMorgan Chase & Co. is a financial holding company. The company has more than 5,700 Chase Bank branches in 26 states and is also among the nation’s top mortgage lenders and credit card issuers. JPMorgan Chase is the largest bank in the United States by assets and has a market capitalization of $217 billion. The company reported most recent annual revenue of $94.2 billion and has 241,359 employees. The bank reported a year-over-year increase of 10% in total deposits in Q1 2016. Further, credit card sales volume was up 8%, while merchant processing volume spiked 12% over the past year.

JPMorgan Chase, in its current structure, is the result of the combination of several large U.S. banking companies over the last decade including Chase Manhattan Bank, J.P. Morgan & Co., and Bank One. Bear Stearns and Washington Mutual were also acquired at the end of the last economic cycle, a testament to the strength of the bank during a downturn economy. Today, Chase Bank is a global financial leader and one of the most well-capitalized banks in the world.

Company Type: Public (NYSE: JPM )S&P: A- (Investment Grade)Locations: 5,700+ Websites: www.jpmorgan.com

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CHASE BANK


MISSION VIEJO COUNTRY CLUB

THE SHOPS AT MISSION VIEJO

LAKE MISSION VIEJO

AREA OVERVIEW

Mission Viejo is a city located in the heart of the prestigious South Orange County. As of 2014, Mission Viejo’s

population consisted of 93,699 people. Mission Viejo is one of the largest master-planned communities ever built under a single project in the United States. The planned community concept that makes Mission Viejo the ideal place to live, also makes the city an ideal place for businesses. The city boasts five, Interstate 5 freeway on/off ramps, with virtually all businesses located within 2 miles of the freeway. Mission Viejo is poised to serve the commercial and retail needs of a region of 250,000 people that eventually will grow by another 60,000 as the foothills east of the city are fully developed. Mission Viejo is a world-class city in the heart of one of the most affluent growth markets in the nation and was recently named as the 2nd best place in the U.S. to buy a home by “Entrepreneur Magazine.”

Mission Viejo is recognized as one of America’s most successful master-planned communities and has consistently been voted as one of America’s most safe communities. Mission Viejo was ranked Number One for the “Safest City in California” in 2013. The city’s strict adherence to a master plan for 35 years has created a community best known for immaculate, attractive subdivisions, 43 parks, a 41,000 square foot library, California Distinguished Schools and National Blue Ribbon Schools. Community planners have blessed the city with the best of both worlds, making Mission Viejo the residential and commercial heart of South County. Interstate 5 links Mission Viejo to the Irvine Spectrum to the north and San Juan Capistrano and San Clemente to the South.

THE SHOPS AT MISSION VIEJOThe Shops at Mission Viejo is an upscale shopping mall anchored by Macy’s, Nordstrom, H&M, and Forever 21. With over 150 different stores, the Shops at Mission Viejo is Orange County’s Southernmost Mall. Originally opened in 1979, the mall underwent a massive renovation in 2000 which allowed it to become home to the very first Microsoft store in the country. In 2014, The Shops at Mission Viejo launched an upgraded dining pavilion with new furniture, flooring, and electronic charging stations.

AREA OVERVIEW

16

CHASE BANK


DISNEYLAND

LAGUNA BEACH

SOUTH COAST PLAZA

Orange County is the third most populous county in the State of California and the sixth most populous county

in the United States. Located in the heart of Southern California between Los Angeles to the north, San Diego to the south, and Riverside and San Bernardino counties to the east. Orange County is comprised of 34 cities within its 798 square miles and a population of over 3 million people.

Also referred to as The Gold Coast of California, Orange County has over 42 miles of coastline with breathtaking vistas that have led tourists and residents alike to proclaim it the California Riviera. Orange County is home to some of the world’s most popular tourist attractions such as The Disneyland Resort and California Adventure, Knott’s Berry Farm, Mission San Juan Capistrano and miles of popular beaches. South Coast Plaza offers world-renowned shopping that generates over $1.5 billion which is the highest in the United States. Over 38 million tourists visit Orange County annually, spending approximately $7.3 billion and supporting nearly 83,000 local jobs.

The Pacific Ocean borders Orange County on the southwest side making several beach cities favorite destinations. Laguna Beach is known as a mecca for art lovers who flock each summer to attend the Festival of the Arts, Pageant of the Masters, Art-A-Fair and the Sawdust Festival. To the North is Huntington Beach, or “Surf City,” with one of the longest piers in the state. Huntington Beach is known for hosting major surfing competitions, including the US Open. Huntington Harbor, Newport Harbor and Dana Point Harbor are famous for their festive boat parades during the winter months.

Orange County is an influential metropolitan area with world-class educational, cultural, scientific and business institutions making it one of the most desirable places to live, work and enjoy the quintessential American Dream. Offering the best golf courses, miles of hiking, biking and equestrian trails, its Golden Coast, theme parks and cultural delights, Orange County will continue to attract residents and visitors.

AREA OVERVIEW

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CHASE BANK


DEMOGRAPHICS

1-Mile 3-Mile 5-MilePopulation

2021 Projection 10,620 139,101 327,7192016 Estimate 10,274 127,471 311,9582010 Census 9,885 120,652 295,0602000 Census 9,068 96,874 263,683Growth 2000-2010 9.01% 24.55% 11.90%Growth 2010-2016 3.94% 5.65% 5.73%Growth 2016-2021 3.37% 9.12% 5.05%

Households2021 Projection 4,053 48,395 120,4132016 Estimate 3,841 44,276 114,3562010 Census 3,654 41,544 106,9602000 Census 3,260 33,589 96,809Growth 2000-2010 12.09% 23.68% 10.49%Growth 2010-2016 5.12% 6.58% 6.91%Growth 2016-2021 5.52% 9.30% 5.30%

2016 Est. Population by Single-Classification RaceWhite Alone 7,642 93,640 230,069 Black or African American Alone 226 2,091 4,523 American Indian and Alaska Native Alone 52 421 1,248 Asian Alone 1,003 15,832 36,561 Native Hawaiian and Other Pacific Islander Alone 21 217 499 Some Other Race Alone 791 7,801 22,617 Two or More Races 519 7,070 15,579

2016 Est. Pupulation by Ethnicity (Hispanic or Latino)Hispanic or Latino 2,544 23,724 66,461 Not Hispanic or Latino 7,730 103,747 245,497

2016 Est. Average Household Income $117,895 $146,249 $132,556

The information contained herein does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective buyers may need or desire. All financial projections are based on assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and, therefore, are subject to material variation. This Marketing Package does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the information herein. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective buyers.

Neither Owner nor Broker nor any of their respective officers, Agents or principals has made or will make any representations or warranties, express or implied, as to the accuracy or completeness of this Marketing Package or any of its contents, and no legal commitment or obligation shall arise by reason of the Marketing Package or its contents. Analysis and verification of the information contained in the Marketing Package is solely the responsibility of the prospective buyer, with the Property to be sold on an as is, where-is basis without any representations as to the physical, financial or environmental condition of the Property.

Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice. Owner has no legal commitment or obligations to any entity reviewing this Marketing Package or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner in its sole discretion, a written agreement for purchase of the Property has been fully delivered, and approved by Owner, its legal counsel and any conditions to the Owner’s obligations thereunder have been satisfied or waived.

This Marketing Package and its contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the Contents), are of a confidential nature. By accepting this Marketing Package, you unconditionally agree that you will hold and treat the Marketing Package and the Contents in the strictest confidence, that you will not photocopy or duplicate the Marketing Package or any part thereof, that you will not disclose the Marketing Package or any of the Contents to any other entity (except in the case of a principal, who shall be permitted to disclose to your employees, contractors, investors and outside advisors retained by you, or to third-party institutional lenders for financing sought by you, if necessary, in your opinion, to assist in your determination of whether or not to make a proposal) without the prior authorization of the Owner or Broker, and that you will not use the Marketing Package or any of the Contents in any fashion or manner detrimental to the interest of the Owner or Broker.

CONFIDENTIALITY AGREEMENT

MISSION VIEJO, CALIFORNIA

EXCLUSIVELY LISTED BY:

Kevin T. FrymanExecutive Vice [email protected] | BRE #01321833

Edward B. [email protected] | BRE #01118569

http://listings.hanleyinvestment.com/

Documents

OFFERING MEMORANDUM - LoopNet · 2017. 3. 27. · 3 CHASE BANK The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for