METRO SHOPPING CENTER - Jesse Lee Del Amo Bl Lakewood CA-OMP2.pdf · Del Amo Metro Shopping Center is an excellent opportunity to buy a stabilized Starbucks anchored shopping center

METRO SHOPPING CENTER

“Lakewood’s quick stop Starbucks Anchored Shopping Center”

5910 Del Amo Blvd. | Lakewood, CA 90713

DEL AMO

Colliers International | Offering M

emorandum

PRESENTED BY

Tom Lagos, ccimExecutive Vice Presidentdir +1 213 532 [email protected]

El WarnerAssociate Vice Presidentdir +1 213 532 [email protected]

Executive SummaryOffering SummaryInvestment HighlightsFinancial Summary

5 Property Overview Parcel InformationParcel Map

6 Financial Overview Rent RollIncome & ExpensesSite Plan

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Tenant Overview StarbucksWingstopSprintWonderland Smoke Shop

10 Area OverviewAerial OverviewDemographic SnapshotTop Employers In LakewoodTraffic Counts

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4 | COLLIERS INTERNATIONAL

DEL AMO METRO BROKER OPINION OF VALUE | 5

EXECUTIVE SUMMARYFinancial Summary

*Year 2 assumes the renewal of Starbucks and Wingstop

Price $4,150,000

Propery Size (NRA) 4,814

Year Built 2005

Occupancy 100%

Operating Data

Net Operating Income - In Place $227,242

Net Operating Income - Year 2 $245,608

Cap Rate - In Place 5.48%

Cap Rate Year 2 5.92%

Traffic Count

Del Amo Blvd. 32,560

Woodruff Ave. 22,801

Investment Highlights

Offering SummaryDel Amo Metro Shopping Center is an excellent opportunity to buy a stabilized Starbucks anchored shopping center located on a major intersection in the city of Lakewood, California. The property is situated on a high trafficked intersection and includes an easily accessible drive-thru.

The property has an excellent synergy of tenants with high performing sales volumes and is well known throughout Lakewood’s suburban community. Situated a few miles away from Interstate 605 (I-605), the center offers the community of Lakewood, as well as neighboring cities, a quick stop for food and specialty product orientated services.

> Excellent opportunity to buy a core retail asset anchored by Starbucks

> Wingstop is a high performing tenant with excellent sales and is nearing their percentage rent breakpoint

> Ability to increase income with increasing sales volumes

> Strong demographics including an average household income of $93,675 within a one mile radius, and a projected population growth of 2.39% within the next five years.

> Strong customer base and established brand following.

> This Starbucks offers an ease of accessibility with its convenient drive-through amenities and offers long term stability of a successful tenant with excellent credit.

> The Del Amo Metro Station is also conveniently located along the major thoroughfare Del Amo Blvd and is located less than two miles from Intestate 605, which sees over 200,000 CPD.

> The Property directly benefits from a direct traffic count of 55,000 cars per day at its main intersection.

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> PROPERTY NAME Del Amo Metro

> PROPERTY ADDRESS 5910 Del Amo Blvd., Lakewood, CA 90713

> LOCATION Southeast Corner of Del Amo Blvd. & Woodruff Ave.

> APN 7176-025-013

> LAND AREA 22,008

> BUILDING SIZE 4,814

> PARKING SPACES 38

> ZONING LKC3YY

Parcel Information Parcel Map

PROPERTY INFORMATION



FINANCIAL OVERVIEWRent Roll

Space Tenant Lease Start Lease End SF % Of GLA

Contract Rental Rate Rent Per SFRent Increases Options

Year Month Year Month

10100 Starbucks1 Jan-06 Jan-16 1,500 31.2% $108,900 $9,075 $72.60 $6.05 Feb-16 $119,700.00 2 x 5 yr

10200 Sprint Jul-15 Jun-20 1,140 23.7% $37,620 $3,135 $33.00 $2.75 Annual 3% 2 x 5 yr

10300 Wingstop1 Feb-06 Feb-16 1,200 24.9% $59,084 $4,924 $49.24 $4.10 Mar-16 > FMV or CPI 1 x 5 yr

10400Wonderland Smoke Shop

Sep-13 Sep-18 974 20.2% $21,068 $1,756 $21.63 $1.80 Oct-15 Oct-16 Oct-17

$21,700 $22,351 $23,021

1 x 5yr

Occupied Totals - In Place 3,674 76.3% $189,052 $15,754 $51.46 $4.29

Lease Back Totals 1,140 23.7% $37,620 $3,135 $33.00 $2.75

Totals 4,814 100.0% $226,672 $18,889 $47.09 $3.92

Income & ExpensesYear 1 Year 2

Total &/SF Total &/SFIncome

Rental Income $226,672 $47.09 $245,141 $50.92

Expense Reimbursements $104,000 $21.60 $107,000 $22.23 Effective Gross Income $330,672 $65.26 $352,141 $73.15

Real Estate Taxes $50,936 $10.58 $52,464 $10.90 Property Insurance $2,500 $0.52 $2,575 $0.53 CAM/R&M $40,074 $8.32 $41,276 $8.57 Management $9,920 $2.06 $10,218 $2.12

EGI (%) 3.00% 3.00%Operating Expenses $103,430 $21.49 $106,533 $22.13

Net Operating Income $227,242 $47.20 $245,608 $51.02 Operating Expense Ratio 31% 30%

1) Starbucks and Wingstop have near term expirations. Please contact us for updates.


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WOODRUF AVE

DEL AMO BLVD

SUITE 59061,500 SF

SUITE 59081,140 SF

SUITE 59101,200 SF

SUITE 5912974 SF

Site Plan


TENANT OVERVIEW


Starbucks Overview

Source: Q3 FY14 Starbucks Earning Conference Webcast, starbucks.com, & Moody’s Investor Service

Starbucks Corporation was founded in 1971 and began a coffee revolution from a single store in Seattle’s Pikes Place Market. Today, Starbucks has 300,000 employees serving 71 million customers, in 21,000 stores across 65 countries.

Starbucks remolded the coffee industry and has set a new standard with their impenetrable brand and strategic business model. With annual revenues over $15.5 billion dollars, Starbucks has continued on an upward trajectory and has increased its U.S. revenue by 4.2 billion dollars alone in 2014’s Q3.

Starbucks maintains a stable outlook through new product offerings, restaurant growth, and its brand strength. Starbucks remains to be the largest coffeehouse company in the world and opens, on average, two new stores every day while offering their employees enviable benefit packages.

As a rule, Starbucks stores are not franchised to private individuals. However, the company gives licensing agreements to companies who hold, or have access to, locations Starbucks regards as desirable – i.e., airport locations, national grocery chains, major food service corporations, university campuses, and hospitals. These licensed locations represent over one-third of all Starbucks stores operating in the continental U.S.

To stay atop of its competitors, Starbucks has utilized technological innovation. It was one of the first coffee shops to offer mobile friendly initiatives, including the installation of wireless charging mats in select locations and pay-by-app features.

Starbucks Corporation (NASDAQ:SBUX) senior unsecured debt rating has been upgraded to A3 as of May 30, 2014.



Yelp Reviews

“Super friendly staff. LOVE LOVE LOVE being able to pay with my registered gift cards in my phone. I also love the loyalty program with free birthday coffee. Always friendly at this store and great A /C. Smaller than many but still has comfortable seating and outside seating. Drive thru can be difficult to get into due to angle and can have a but if a line. They do often run out if some if the wraps but that’s because they try to keep it fresh. Great coffee and refreshers!”

Tammy R. East Los Angeles, CA

“I love ‘this’ Starbucks! They remember my name, my drink details and it is a great place to come for a smile!”

Camille R.Lakewood, CA

Lease Abstract

Suite 10100

Landlord Del Amo Metro Partners, LLC

Tenant Starbucks Corporation

Tenant Name Starbucks

Building Size (SF) 1,500

Effective Date July 1, 2005

Rent Commencement Date January 20, 2006

Lease Expiration Date January 31, 2016

Option(s) with at least 180 days written notice 2 X 5 Years

Contract Rental Rate Total $/Yr.

Lease Years 1-5 (1/20/2006 -1/31/2011) $99,000

Lease Years 6-10 (2/1/2011 -1/31/2016) $108,900

Option Rental Rate

Option 1: Lease Years 11-15 (2/1/2016-1/31/2021) $119,700

Option 2: Lease Years 16-20 (2/1/2021-1/31/2026) $131,580

Lessee Expenses1 NNN+10% Admin Fee

Expense Growth Cap2 7%

Lessor Expenses Roof and Structure

Percentage Rent None

Go Dark Clause Yes

Tenant Exclusive Yes

Subject to Shopping Center Exclusive Use Restrictions Yes

Source: Lease

1. 10% Admin Fee exclusive of Landlord’s Insurance and Real Estate Taxes and shall not increase by more than 5% non-cumulative per year.

2. Annual 7% operating expense growth cap for any calendar year excludes Landlord’s Insurance, Real Estate Taxes, Security, and Utilities Administrative Charges

14 | COLLIERS INTERNATIONAL14 | COLLIERS INTERNATIONAL

Wingstop Overview

Wingstop Restaurants operates and franchises more than 470 quick-service eateries that specialize in Buffalo-style chicken wings available in a variety of flavors including Atomic, Cajun, Teriyaki, Hawaiian, Garlic Parmesan, and Hickory Smoked BBQ. Found mostly in Texas and more than 30 other states, the aviation-themed restaurants also serve boneless, breaded chicken and a selection of side dishes. Wingstop locations typically offer dine-in seating as well as take-out service. Started by Antonio Swad (who also founded Pizza Patrón) in 1994, Wingstop Restaurants is owned by investment firm Roark Capital Group.

Its menu includes classic wings, boneless wings and strips, gliders, fries, individual combos, family packs, sides, and drinks. The company was founded in 1994 and is headquartered in Dallas, Texas.

Wingstop’s national spokesman is Troy Aikman, three-time Super Bowl Champion and NFL Hall of Fame inductee.[2] It was acquired by Gemini Investors in 2003, who sold it to Roark Capital Group in 2010.


Yelp Reviews

Shay S.Long Beach, CA

“I have visited multiple Wingstops in the area and have found this location to consistently deliver the best food and cleanest location.

The staff is always friendly, proactive in their communication and open to modifications. Every one of them is clean and professional so I never worry about them handling my food”

Kristen D.Lakewood, CA

“*LEMON PEPPER & LOUISIANA RUB

*I ALWAYS order my wings online.

*The last order I placed here, My order wasn’t ready and I let that slide. Since it wasn’t ready I just ordered an order of their fries since I had to wait.

*I eat Wingstop at least twice a month”

Lease Abstract

Suite 10300


Tenant Far West Restaurant Group, LLC

Tenant Name (dba) Wingstop


Effective Date October 24, 2005

Rent Commencement Date February 1, 2006

Lease Expiration Date February 28, 2016

Option(s) with 9-12 mos written notice 1 X 5 Years


Lease Years 1-2 (2/1/2006 -2/28/2008) $46,800

Lease Years 3-4 (3/1/2008 -2/28/2010) $49,608

Lease Years 5-6 (3/1/2010 -2/28/2012) $52,584

Lease Years 7-8 (3/1/2012 -2/28/2014) $55,740

Lease Years 9-10 (3/1/2014 -2/28/2016) $59,084

Option Rental Rate

Lease Years 11-12 (3/1/2016-2/28/2018) Greater of FMV or CPI Increase

Lease Years 13-14 (3/1/2018-2/28/2020) Greater of CPI or 6% Increase

Lease Years 15 (3/1/2020-2/28/2021) Greater of CPI or 6% Increase

Lessee Expenses NNN


Percentage Rent1 6%

Covenant of Continuous Operation Yes

Landlord Right of Relocation Yes

Tenant Exclusive for Chicken QSR Yes

Subject to Shopping Center Exclusive Use Restrictions YesSource: Lease

1. Percent rent is calculated as 6% of gross sales over the monthly breakpoint (breakpoint calculated as Monthly Minimum Rent/5%)

16 | COLLIERS INTERNATIONAL16 | COLLIERS INTERNATIONAL16 | COLLIERS INTERNATIONAL

Sprint Lease Abstract

Suite 10200


Tenant Evolution Retail Concepts, Inc.

Tenant Name Sprint


Effective Date June 16, 2015

Rent Commencement Date August 1, 2015

Lease Expiration Date July 31, 2020

Option(s) with 9-12 months written notice 2 X 5 Years


Lease Year 1 $37,620





Option Rental Rate

Lease Year 6 Greater of FMV or previous monthly minimum

Lease Year 7 3% increase




Lease Year 11 Greater of FMV or previous monthly minimum




Lease Year 15 3% increaseLessee Expenses NNN+15% Admin FeeExpense Growth Cap None

Lessor Expenses Roof and StructurePercentage Rent NoneCovenant of Continuous Operation YesLandlord Right of Relocation YesTenant Exclusive YesSubject to Shopping Center Exclusive Use Restrictions Yes

Source:Lease

DEL AMO METRO BROKER OPINION OF VALUE | 17DEL AMO METRO BROKER OPINION OF VALUE | 17

Yelp ReviewsWonderland Smoke Shop Lease Abstract

Ben S.Westchester/LAX, CA

“Thanks for your help Cody! Lovin my new healthstone glass!! Very knowledgable staff. Real convenient shop! A buncha affordable pieces and seen some really rare one of a kind pieces. This most def is gonna be my new headshop. They got all the exclusive ish, Appreciate the yelp discount too!!!”

Cliff G.Lakewood, CA

“Nicest glass outside of Venice but with greater service. Jay was so professional and knowledgeable.

Definitely will be back.”

Suite 10400


Tenant Asif Vakil

Tenant Name (dba) Wonderland Smoke Shop

Building Size (SF) 974

Effective Date May 13, 2013

Rent Commencement Date September 4, 2013

Lease Expiration Date September 30, 2018

Option(s) with 6-9 mos written notice 1 X 5 Years


Lease Years 1 (9/4/2013 -9/30/2014) $20,454

Lease Years 2 (10/1/2014 -9/30/2015) $21,068

Lease Years 3 (10/1/2015 -9/30/2016) $21,700

Lease Years 4 (10/1/2016 -9/30/2017) $22,351

Lease Years 5 (10/1/2017 -9/30/2018) $23,021

Option Rental Rate

Lease Years 6 (10/1/2018-9/30/2019) Greater of FMV or $24,172

Lease Years 7 (10/1/2019-9/30/2020) 3% Increase




Lessee Expenses NNN+15% Admin Fee


Percentage Rent None

Radius Restriction 5 miles

Covenant of Continuous Operation YesLandlord Right of Relocation YesSubject to Shopping Center Exclusive Use Restrictions YesSource: Lease

“Paul and tanner are really helpful got me a clean set up for 200 can’t beat that thanx guys will be back soon with more cash! They have an awesome collection”

Jose R.Lakewood, CA


AREA OVERVIEWThe City of Lakewood is located in southern Los Angeles County, about 23 miles southeast of Los Angeles. The area of the city is 9.5 square miles. Lakewood’s population was estimated by the State Department of Finance to be 81,224 in May of 2014.

Lakewood has about 150 miles of streets and 300 miles of sidewalks. More than 36,000 trees line city streets and shade city parks. About 150 acres of the city are devoted to parks and other landscaped open space.

The city primarily began as a planned, post-World War II community Developers Louis Boyar, Mark Taper and Ben Weingart are credited with “altering forever the map of Southern California”.In 1953, developers helped transform the mass-produced housing from its early phases in the 1930s and 1940s to the reality of the 1950s.

Lakewood’s primary thoroughfares are mostly boulevards with landscaped medians, with frontage roads on either side in residential districts. Unlike in most similar configurations, however, access to the main road from the frontage road is only possible from infrequently spaced collector streets.

TRANSPORTATION

Major thoroughfares include Lakewood (SR 19), Bellflower, and Del Amo Boulevards and Carson and South Streets. The San Gabriel River Freeway (I-605) runs through the city’s eastern regions.

Lakewood offers its residents and commuters alike an array of public transportation systems. The city’s DASH transit service is free to Lakewood residents 60 years of age or older without their own transportation and to disabled residents of any age.

The L.A. Metro Transit system operates nearly a dozen bus routes in Lakewood, with a majority connecting to Downtown Long Beach. Seven of the operating routes serve Lakewood Center while other routes connect Lakewood with Cerritos, Artesia, Bellflower, Hawaiian Gardens, Paramount and Signal Hill.

Lakewood Center is a major “transit mall” for Long Beach Transit (LBT) buses. The streets around the mall are a hub for popular north-south and east-west bus routes that take riders to destinations such as CSULB, downtown Long Beach, or the Blue Line for a light rail train ride into Los Angeles.

Lastly, the Los Angeles Metro Blue and Green Line light rails have connect Lakewood commuters to and from Long Beach, Downtown Los Angele, and El Segundo and Redondo Beach.

ECONOMYContract services represent about 40 percent of the city’s operating budget. Lakewood contracts with private firms for trash collection, signal maintenance, and street sweeping.

The economic base of the city is primarily commercial/retail. Almost 3,000 businesses are located in Lakewood.

Lakewood is predominantly owner-occupied (about 72 percent in 2010). In Los Angeles County, less than half of the total housing units were owner-occupied in 2010. Lakewood is predominantly a single-family community with 85 percent of its housing units being single-family detached structures.

Gompers Elementary

School

Bancroft MiddleSchool


De Valle Park

Cleveland Elementary

School

San Martin Park

Gompers Elementary

School

STARBUCKS TRUE LOGOS. GENERATED BY CHI NGUYEN (CHISAGITTA)


Demographic Snapshot

1 Mile 3 Miles 5 Miles

Population

2020 Projection 27,371 232,062 688,437

2015 Estimate 26,731 225,949 669,022

Growth 2015-2020 2.39% 2.71% 2.90%

2015 Est. Pop by Single Race Class 26,731 225,949 669,022

White Alone 17,268 108,784 303,296

Black or African American Alone 1,546 24,262 66,463

Amer. Indian and Alaska Native Alone 185 1,716 4,974

Asian Alone 2,939 42,201 128,183

Native Hawaiian and Other Pac. Isl. Alone 249 1,939 5,681

Some Other Race Alone 2,692 34,505 125,146

Two or More Races 1,851 12,542 35,279

Household

2020 Projection 7,174 57,368 163,139

2015 Estimate 7,024 55,838 158,477

Growth 2015-2020 2.15% 2.74% 2.94%

2015 Est. Average Household Income $93,675 $81,584 $80,175

2015 Est. Median Household Income $82,780 $66,092 $62,745


Top Employers in Lakewood

Long Beach Unified School District 935

Lakewood Regional Medical Center 797

City of Lakewood 613

Los Angeles County Department of Children and Family Services

494

Bellflower Unified School District 406

Los Angeles County Sheriff’s Department 359

Wal-Mart 346

ABC Unified School District 335

Albertsons 329

Piazza McDonald's 221

Del Amo Blvd & Eastbrook Ave 31,180 CPD

Del Amo Blvd & Gondar Ave 32,560 CPD

Woodruff Ave & Henrilee St 22,801 CPD

I-605 & Del Amo Blvd 32,132 CPD

I-605 & 195th Street 225,035 CPD

Traffic Counts

This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 5910 Del Amo Blvd., Lakewood, CA 90713. It has been prepared by Colliers International. 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 Owner and Colliers International. The material is based in part upon information supplied by the Owner and in part upon financial information obtained by Colliers International from sources it deems reliable. Neither Owner, nor their officers, employees, or agents make any representation or warranty, express or implied, as to the accuracy or completeness or 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 from Colliers International, you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence;

3) All photographs and graphic elements are property of Colliers International and use without express written permission is prohibited; and

4) 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 Owner.

Owner and Colliers International 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 of 5910 Del Amo Blvd., Lakewood, CA 90713 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 Owner or Colliers International 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 marketing or 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.

PRESENTED BYPRESENTED BY

Tom Lagos, ccimExecutive Vice Presidentdir +1 213 532 [email protected]

El WarnerAssociate Vice Presidentdir +1 213 532 [email protected]

Documents

METRO SHOPPING CENTER - Jesse Lee Del Amo Bl Lakewood CA-OMP2.pdf · Del Amo Metro Shopping Center is an excellent opportunity to buy a stabilized Starbucks anchored shopping center