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Tenant has occupied the site for 25 years
OFFERING MEMORANDUM
RANCHO CUCAMONGACALIFORNIA
CONFIDENTIALITY AND DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and 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, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and 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 set forth herein.
SPECIAL COVID-19 NOTICEAll potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.
NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.
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P a c i f i cO c e a n
M o n t e r e yB a y
H u m b o l d tB a y
San FranciscoBay
S a n t a B a r b a r a C h a n n e l
G u l f o fS a n t a C a t a l i n a
Chico
Lancaster
Lodi
Lompoc
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Palm Springs
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San Luis Obispo
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Reedley
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Sanger
Selma
Solana Beach
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Klamath Falls
Cedar City
St. George
Henderson
Winchester
RosaritoSan Luis
Bakersfield
Berkeley
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Fremont
Modesto
Oxnard
Riverside
San Bernardino
Stockton
Arden-Arcade
Burbank
Chula Vista
CitrusHeights
Costa Mesa
Daly City
El Cajon
Escondido
Fairfield
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Newport Beach
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San Francisco
San Jose
Santa Ana
Ventura
Sacramento
Carson City
Mexicali
Arizona
Idaho
Nevada
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CALIFORNIA
Mexico
Investment Summary .........................................5Rent Survey of Immediate Surrounding Area ......6Investment Highlights.........................................8Aerial Maps ......................................................10Tenant Summary ..............................................12Site Plan ..........................................................14Area Map .........................................................16Location Overview ............................................18Location Highlights ...........................................20Demographics ..................................................22
TABLE OF CONTENTS
O V E R V I E WPrice $2,690,000
Gross Leasable Area (GLA) 1,990 SF
Lot Size (approx.) 0.73 Acres
Net Operating Income $107,613
CAP Rate 4.00%
Year Built 1993
L E A S E A B S T R A C TLease Type NNN Ground Lease
Lease Term 41 Years
Original Lease Start Date 6/15/1994
Lease Amended for 20-more Years 7/1/2015
Lease Expiration 6/30/2035
Renewal Options 4x5
Increase 10% every 5-yrs*
Landlord Responsibilities None at all
12789 FOOTHILL BLVD., RANCHO CUCAMONGA, CA 91739
PRICE: $2,690,000 CAP: 4.00% RENT: $107,613
INVESTMENT SUMMARY
A N N U A L I Z E D O P E R AT I N G D ATA
Lease Term Annual Rent
7/1/2020-6/30/2025 $107,613
7/1/2025-6/30/2030 $118,374
7/1/2030-6/30/2035 $130,211
* First option rent is set to FMV (but not less than $93,170. Thereafter the 10% rent escalations at each anniversary.
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RENT PER SF SURVEY LOW HIGHNNN Asking Rent $57.83 $54.00 $78.48
NNN Starting Rent $54.57 $51.00 $58.80
NNN Effective Rent $54.00 $54.00 $54.00
CRITERIA: NNN new lease (SF range 1200-3200), in 10-mile radius of subject site (current lease space available or recently leased)
RENT SURVEY OF IMMEDIATE SURROUNDING AREA
CONCESSIONS SURVEY LOW HIGHMonths for Rent - - -
TI Allowance Per SF - - -
Concessions - - -
NNN Effective Rent 18.3% 10.5% 25.1%
NNN Effective Rent 3.0% 3.0% 3.0%
VOLUME SURVEY LOW HIGHDeals 6 - -
SF Leased 11,557 1,224 2,505
Average Deal SF 1,926 1,224 2,505
Buildings 6 - -
Building SF 157,177 1,224 123,735
TIME ON MARKET SURVEY LOW HIGHMarket on Market 6.6 1.0 12.6
Months Vacant 5.4 2.0 15.0
Average Term in Years 3.7 1.0 5.0
RESULTS OF SURVEY: In comparison to current market lease trends, the subject site offers below market rent at $54.10 Rsf/yr. Future upside potential.
Deals by NNN Asking Rent
<$54 $55 $56 $57 $58 >$58
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2
0
Deals by NNN Star t ing Rent
<$54 $55 $56 $57 $58 >$58
1.5
1.0
0.5
0.0
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RESULTS OF SURVEY: In comparison to current market lease trends, the subject site offers below market rent at $54.10 Rsf/yr. Future upside potential.
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INVESTMENT HIGHLIGHTS t 15 years remaining on base term of true NNN ground lease with
10% increases every 5 years. t Tenant committed to the location. Tenant has occupied the site
since 1994. t Tenant has been at this location for 25+ years and recently
extended their lease an additional 20 years. t Visible from the I-10. t Franchisee, J and R Hock Enterprises is a 20+ unit operator. t Current rent payment is well below market rent. t Surrounded by over 80,000 permanent residents in a 5-mile radius. t Strong destination location, sitting as an out pad to a
Food 4 Less anchored Center. t Strategically located near Goodman Logistics Center,
a 1,589,946 SF fulfillment center.
164,000 VPD
304,014TOTAL POPULATION WITHIN 5-MILE RADIUS
$98,135AVERAGE HOUSEHOLD INCOME WITHIN 5-MILE RADIUS
- I-15
32,639 VPD - FOOTHILL BLVD
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Sacred Heart Parish School & Church
I-15 ONTA
RIO FWY- 164,000 VPD
I-15 ONTA
RIO FWY- 164,000 VPD
FOOTHILL BLVD - 32,639 VPDFOOTHILL BLVD - 32,639 VPD
BURGER
McDonald’s
Barrington Place Apartments
Perdew Elementary School
West Heritage Elementary School
Heritage Intermediate School
Steelcase Dist Facility
Goodman Logistics Fulfillment Center
Etiwanda Generating Power Station
Excel Logistics Center
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TACO BELLTaco Bell is a southern California, (HQ: Irvine, CA) based quick service restaurant chain that specializes in Mexican-style cuisine. It is a subsidiary of YUM! Brands, Inc., which is the largest restaurant chain in the world. They enjoy the largest share of Mexican-style restaurants in the United States (franchise sales are $5.7 billion). Over 35(mil) patrons, visit Taco Bell each week and over 80 percent of its 6,500 locations are franchised.
Glen Bell opened first restaurant in Downey, CA in 1962. The chain now employs 210,000 +/-employees nationwide. On 3/15/18, Taco Bell announced that all employees are eligible for classes at 80 online universities. They also provide tuition assistance and college credit for job training at the restaurant. There are over 7,000 restaurants across the US and 400+/- units in 27 countries outside the US including Restaurants in Canada, Guam, Aruba, Dominican Republic, Chile, Costa Rica, Guatemala, Puerto Rico, Ecuador, Hawaii, Asia, and Europe.
Taco Bell plans to grow to 8000 units by 2022 which would increase its franchise footprint to $10 billion to $15 billion by 2022.
“Taco Bell truly is a Category of One. The team delivered another solid year of operating results driven by innovative new products and unparalleled value. I am particularly excited about the new products and unique and compelling marketing calendar the team has planned for 2018. Internationally, Taco Bell continues to build momentum as we entered five new countries and ended the year with over 400 Taco Bell restaurants outside the U.S.” (Greg Creed CEO YUM! Brands Annual Report 2018)
TENANT SUMMARY
IRVINE, CAHEADQUARTERS
OWNERSHIP TICKER: NYSE
LOCATIONSEMPLOYEES
YUM
7,000210,000
PUBLIC
TACO BELL
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SITE PLAN
FOOTHILL BLVD
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15
15
Kaiser
Rochester
Cucamonga
CENTRALPARK
MCDERMOTTPARK
VICTORIAARBORS PARK
MILLIKENPARK
ELLENAPARK
VINTAGEPARK
WESTGREENWAY
PARK
HERITAGEPARK
HERITAGECIRCLE PARK
AUTO CLUBSPEEDWAY
RANCHOCUCAMONGAEPICENTER
Ontario
Fwy
Foothill BlvdFoothill Blvd
Etiw
anda
Av e
Cherry Ave
Arrow Hwy
6th St
Cal
abas
h Av
e
Il ex
S t
Almon d Av e
B ana na Ave
Hys
sop
Dr
P e can Av e
Hickor y Ave
Corn
wall A
ve
Chatham DrFlagstaff Dr
Newcastle CtChestnut AveChestnut Ave
Joliet DrOatman Dr
Pais
ley
L n
Kais
er W
y.
Stanton Dr
Napa St
Ivy AveIvy Ave
Ivy Ave
Sant
a An
i ta A
ve
Cot
t onw
o od
Ave
Owen St
Mulber ry Ave
Whittram Ave
Base Line Rd
Day
Cre
ek B
lvd
Milli ken Ave
E ast
Ave
Eti w
anda
Ave
V ictoria Park Ln
Victoria Gardens L
n
Rochester Ave
Terra Vista Pkwy
Mountain View Dr
Arbor Ln
Elle
na W
Fenn
el R
d
Constitution Way
Atwd
. C
t
Mon
et A
ve
Brighto n
N Mainstreet
S Mainst.Malaga Dr
Colonial Dr
Kew
Ave
Candela Dr
Wild Horse Way
Shelby P l
Mayten Ave
Saddleridge St
Church StHe
nba n
e S t
He n
ban e
St
Long Mdw. Dr
Brandywine Pl
Bunker Hill Dr
Ellena E
Hyssop D
r
Hys
sop
Dr
Golden Lf. Dr
Colonnade Dr
Bari DrWindy Gr. Dr
Craw
ford P
l
Sugargum St
Farrington St
Spr. Mt. Dr
Redwd. Dr
Trivento Pl
Travis Pl
Dunm
ore Pl Sunn
ysd.
Pl
Mosaic Dr
Amelia Dr
Chervil St
Acorn Pl
Ardmr. Ct
Tagg
art P
l
Cultural Center Dr
Aloe
Ct
Winery Dr
Quail Ct
Gatsby Dr
Hess Pl
Mon
ticel
lo A
ve
Eden A v e
Eti w
anda
Av e
Pacific Electric Trail
Millik en Ave
6th St
Arrow Hwy
Jersey Blvd
Buffalo Ave
Charles Sm
ith Ave
Day Cree
k Blvd
8th St
Vict
o ry
Dr
Roc
hest
e r A
ve
Jack Benny Dr
San Marino St
Millenium Ct
Mayten A ve
7th St
Mas
i Dr
Pitts bur gh Ave
Baseline Rd
East
Ave
Etiw
anda
Ave
W Liberty Pkwy
E Liberty Pkwy
Barri
ng
ton Pl
S Heritage Cir
W Y
osemite Loop R
d E Lincoln Loop Rd
E Yos
emite
Loo
p Rd
W Lincoln Loop R
d
W G
rand AveE G
rand Ave
E Constitution
WayW Constitu tion Way
Del Norte St
Garcia Rd
N H
erita
ge C
ir
Bear
Cre
ek D
r
McKinley D
r
Sunrise St
Pino
t Pl
Jamestwn. Cir
Day Canyon Dr
Mor
ning
Cre
st P
l
Dolcetto Pl
Quail Ct
Lauramore C
t
Loire Valley Dr
Hunt
ingt
on S
t
Rideout Ct
Pt. Judith
St
Larkin Ct
Dodge Ct
Claret Ct
Lassen St
Bowie St
Tyler Ln
Marbella St
Miller Ave
Edison A ve
Pacific Electric Trail
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RANCHO CUCAMONGA, CALIFORNIARancho Cucamonga is a beautiful city in San Bernardino County, California, with a population of over 175,250 people. It is just 37 miles east of Downtown Los Angeles, giving the city a small-town feel with access to one of the largest cities in the U.S.
Rancho Cucamonga is an affluent city with easy access to surrounding areas through the 210 Freeway and Interstate 15. It has also been ranked as one of the 50 best places to live in the U.S. and is known as being one of the most family-oriented communities in Southern California.
Rancho Cucamonga is filled with exciting families for the entire family to enjoy. The Cucamonga-Guasti Regional Park features 2 lakes, equipped with pedal boats and fishing, and a swim water complex with slides. It is 150-acres and gives visitors outdoor recreational activities within an urban setting. The North Etiwanda Preserve is another popular spot in the area. This preserve has one of the most beautiful hikes in the area, leading up to a waterfall.
With consistent job growth and a strong industrial real estate market, there is no question why Rancho Cucamonga was chosen as the headquarter location of Amphastar (Pharmaceutical company). The city has become well established in the pharmaceutical sector and served as a haven for high-tech industries which has created a strong economic structure within the city. Ranch Cucamonga has also continued to attract a young and well-educated work force, 63.3% of which have some college education, which is higher than all other Southern California counties. The retail ecosystem has also seen an increase in sales. From 2008-2018, the city’s taxable retail sales grew from $2.22 billion to $2.44 billion, which further grew the city’s economy and improved the quality of life for residents. The city’s centralized location and access to major markets makes it the perfect place to embark on everyone’s next business venture.
LOCATION OVERVIEW
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M A J O R E M P L O Y E R SR A N C H O C U C A M O N G A , C A
Etiwanda School District 2,387
Chaffey Community College 2,120
Inland Empire Health Plan 2,078
Mission Foods 950
Alta Loma School District 940
City of Rancho Cucamonga 761
Amphastar Pharmaceuticals 657
Mercury Insurance Company 640
Macy's 625
Central School District 608
LOCATION HIGHLIGHTS
Surrounded by the regions commuter retail and
logistic oriented hub
Nestled in heart of suburban infill with dense population and
barriers to entry.
RANCHO CUCAMONGA, CALIFORNIA ALONG HISTORIC ROUTE 66
Located directly off the I-15, strong visibility for multiple points of ingress / egress.
Located near several large fulfillment centers
Ontario Int'lAirport
RanchoCucamonga
Ontario
Fontana
Upland
Alta Loma
Grapeland
Kaiser
Rochester
CucamongaNorthCucamonga
Etiwanda
Ballou
Champagne
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15
CENTRALPARK
AUTO CLUBSPEEDWAY
UPLAND HILLSCOUNTRY CLUB
WHISPERINGLAKES GOLF
COURSEMisn. Blvd
Onta
rio Fwy
Foothill Fwy
Foothill Fwy
San Bernardino Fwy San Bernardino Fwy
Foothill Fwy
Foothill Blvd Foothill BlvdHistoric Route 66
E Mission Blvd
Hvn
. AveLemon Ave
Carnelian St
Eti w
and a
Ave
Base Line Rd
Archibal d Ave
E 16th St
East
Av e
E 19th St 19th St
Day
Cr e
ek B
lvdH
aven Ave
Mil l iken Ave
Arch ibald Ave
N Vineya rd Av e
Gro
v e A
v e
E 4th StE 4th St
E Arrow Hwy
N A
rch i
bald
Ave
N G
rove Ave
Vine
yard
Ave
4th St
N M
illike
n Av
e
N H
aven
Ave
Arrow Hwy
Milliken Ave
Have n Ave
N G
rove Ave
E Airport Dr
E Holt Blvd
E 4th St
S G
r. Av
e
S H
ave n
Ave
S M
i llik e
n Av
e
Jurupa St
Che
rry A
ve
4th St
Etiw
anda
Ave
Com
mer
ce D
rE 4th St
Valley Blvd
San Bernardino Ave
Etiw
anda
Ave
Slover AveE Airport Dr
Jurupa St
Mul
berry
Av e
Che
rry A
ve
Jurupa Ave
S Grove A ve E Francis St
S Haven Ave
S A rchibald Ave
E Philadelphia St
Etiw
anda
Ave Ea
st A
ve
Baseline Ave
Che
rry A
ve
4 miles to Auto Club Speadway
5.7 miles to Ontario Int’l
Airport
37 miles east of Downtown Los Angeles
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304,014Total Population Within 5-Mile Radius
$98,135 Average Household Income
Within 5-Mile Radius
$77,307Median Household Income
Within 5-Mile Radius
52.9% From 2000
DEMOGRAPHICS /RANCHO CUCAMONGA, CA
88,623Total Households in 5-Mile Radius
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POPULATION 1 MILE 3 MILES 5 MILES2024 Projection 15,488 104,041 304,0142019A Estimate 14,470 100,911 293,922Growth 2019A - 2024 7.03% 3.10% 3.43%2000 Census 6,702 60,535 202,0422010 Census 12,594 94,494 274,409Growth 2000 - 2010 87.91% 56.10% 35.82%
HOUSEHOLDS 1 MILES 3 MILES 5 MILES2024 Projections 5,109 31,633 88,6232019A Estimate 4,736 30,487 85,469Growth 2019A - 2024 7.86% 3.76% 3.69%
2000 Census 1,339 17,188 57,931
2010 Census 4,122 28,198 79,089Growth 2000 - 2010 207.80% 64.06% 36.52%
HOUSEHOLDS BY INCOME (2019A Est.) 1 MILES 3 MILES 5 MILES$200,000 or More 6.80% 6.48% 6.04%
$150,000 - $199,999 10.04% 11.83% 8.90%
$100,000 - $149,999 20.79% 22.90% 20.06%$75,000 - $99,999 19.10% 18.33% 16.71%$50,000 - $74,999 18.46% 18.41% 19.18%$35,000 - $49,999 9.81% 8.78% 10.42%$25,000 - $34,999 4.59% 4.64% 6.48%$15,000 - $24,999 6.43% 4.63% 6.47%$10,000 - $14,999 1.11% 1.44% 2.51%Under $9,999 2.87% 2.55% 3.22% 2019A Est. Average Household Income $104,106 $108,154 $98,135
2019A Est. Median Household Income $83,237 $87,465 $77,307
2019A Est. Per Capita Income $34,088 $33,190 $28,736
POPULATION PROFILE 1 MILES 3 MILES 5 MILES2019A Estimated Population by Age 14,470 100,911 293,922
Under 4 7.1% 6.4% 6.8%5 to 14 Years 15.6% 14.5% 15.2%15 to 17 Years 4.4% 4.5% 4.6%18 to 19 Years 2.5% 2.8% 2.8%20 to 24 Years 7.3% 7.7% 7.8%25 to 29 Years 9.0% 8.4% 8.4%30 to 34 Years 8.6% 7.8% 7.6%35 to 39 Years 8.2% 7.8% 7.5%40 to 49 Years 14.5% 14.6% 13.9%50 to 59 Years 11.6% 12.7% 12.2%60 to 64 Years 4.2% 5.0% 4.9%65 to 69 Years 3.0% 3.3% 3.4%70 to 74 Years 1.8% 2.0% 2.2%Age 75+ 2.2% 2.5% 2.8%
2019A Median Age 32.4 33.7 32.8
2019A Population 25 + by Education Level 9,139 64,693 184,418Elementary (0-8) 3.70% 3.92% 6.30%Some High School (9-11) 7.06% 6.64% 8.32%High School Graduate (12) 22.27% 21.36% 23.42%Some College (13-15) 25.83% 25.12% 24.98%Associates Degree Only 9.81% 9.20% 8.84%Bachelors Degree Only 17.86% 20.72% 17.22%
Graduate Degree 12.55% 11.75% 8.92%
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RANCHO CUCAMONGA CALIFORNIA
LIOR REGENSTREIFSENIOR MANAGING DIRECTOR INVESTMENTS
SENIOR DIRECTOR, NET LEASED PROPERTIES GROUPENCINO OFFICE
Tel: (818) 212-2730Fax: (818) 212-2710
[email protected]: CA 01267761
