Holliday GP Corp. ("HFF"), California Department of Real Estate License #01385740.
MISSION AVENUEESCONDIDO BLVD.
CAR WASH & FUEL STATION7 5 0 N . E S C O N D I D O B O U L E V A R D | E S C O N D I D O , C A
LONG TERM, ABSOLUTE NNN INVESTMENT OPPORTUNITY1.81 ACRE HARD CORNER LOT AT HIGH TRAFFIC INTERSECTION
PROPERTY DETAILS
ADDRESS: 750 N Escondido Blvd Escondido, CA 92025
RENTABLE BUILDING AREA: 27,112 SF
OCCUPANCY: 100.0%
YEAR OF COMPLETION: 1990
NUMBER OF BUILDINGS: 3
# OF FUEL PUMPS: 28
SITE AREA: 1.81 Acres
OWNERSHIP: Fee Simple
ASSESSOR PARCEL NUMBER: 229-180-90
ZONING: Commercial General
PRICE: $7,762,000CAP RATE: 6.90%
INVESTMENT OVERVIEWHFF, as exclusive advisor, is pleased to offer the extraordinary opportunity to purchase the fee simple interest in a two-tenant automotive service property (the “Property”), located in one of the most dynamic markets of San Diego County, Escondido. The property is leased to Wash & Mart and Star Auto Glass & Tint both on an Absolute NNN basis with approximately 12 years and 18 years left of original lease term respectively with fixed annual escalations. The Property is strategically located on a hard corner at the intersection of N Escondido Blvd and W Mission Avenue with over 34,600 cars per day passing the property. The property is surrounding by many national retailers including Stater Bros Markets, Food 4 Less, McDonalds, Wells Fargo, Burger King, Taco Bell, Dollar Tree, and Rite Aid.
INVESTMENT SUMMARY
PRICE: $7,762,000
YEAR ONE PROJECTED NOI1: $535,566
(1) Annual NOI is as of January 1, 2019.
MISSION AVENUE
ESCONDIDO BLVD.
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WASH & MART
MISSION AVENUE
ESCONDIDO BLVD.
AUTO REPAIR
CAR WASH
ADDITIONAL FUEL STATION
SELF STORAGE PROPERTY UNDER
CONSTRUCTION
FOOD MART & WAITING AREA
FUEL STATION & FOOD MART
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WASH & MART
WASH & MART LEASE SUMMARY
TENANT: Wash & Mart (Anthony Squared, Inc)
SQUARE FEET: 20,877 SF
COMMENCEMENT DATE: 6/1/2015
EXPIRATION DATE: 5/31/2030
LEASE TYPE Absolute NNN
ANNUAL BASE RENT SCHEDULE:
ANNUAL RENT (CURRENT): $451,272
INCREASES: 1% Annually through 2020, 2% Annually thereafter
STAR AUTO GLASS & TINT
TENANT: Star Auto Glass & Tint (Firas Jebo and Raad Jebo)
SQUARE FEET: 6,235 SF
COMMENCEMENT DATE: 8/1/2016
EXPIRATION DATE: 7/31/2036
LEASE TYPE: Absolute NNN
ANNUAL BASE RENT SCHEDULE:
ANNUAL RENT (CURRENT): $76,644
INCREASES: 1.5% Annually
LEASE SUMMARIES
4 | INTRODUCTION |
WASH & MART
STABLE CASH FLOW WITH LONG TERM STABILITY
• Long Term Leases: Wash & Mart has approximately 12 years remaining of fixed lease term remaining and Star Auto Glass & Tint has approximately 18 years of remaining fixed lease term offering long term cash flow for an investor. The operator of Wash & Mart also operates many other locations in Southern California, providing industry experience and stability for future investors.
• Attractive Rent Increases: Fixed 1-2% annual increases throughout the initial lease term and option periods.
• Strong Fuel Sales: The fuel station has historically been one of the top stations in Southern California based on annual volume.
INVESTMENT HIGHLIGHTS
ZERO OWNER RESPONSIBILITIES
Absolute NNN leases for both tenants provide no landlord responsibilities or management requirements.
INTERNET RESISTANT RETAIL
The Property consists of a range of auto service retail uses. This industry has outperformed other retail uses and is insulated from the effects of e-commerce.
EXCELLENT 1031 EXCHANGE OPPORTUNITY
• Strong Inflation Hedge: Scheduled annual fixed rental increases produce high NOI growth, enhancing future cash on cash returns and providing a strong hedge against inflation.
• Debt Free: The Property is marketed free and clear of existing financing, creating the opportunity to place new financing tailored to an investor’s desired returns.
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WASH & MART
INVESTMENT HIGHLIGHTS (CONTINUED)
HIGH TRAFFIC, REGIONAL
RETAIL PROPERTY
• Strategic Location: The Property is strategically located at the corner of N Escondido Blvd and W Mission Avenue with over 34,600 cars per day passing the property. The property is surrounding by many national retailers including Stater Bros Markets, Food 4 Less, McDonalds, Wells Fargo, Burger King, Taco Bell, Dollar Tree, and Rite Aid.
• High Consumer Spending: Within 3 miles the total amount spent on gasoline exceeds $116 million annually. The average household spends above $2,348 annually on gas in Escondido which is far greater than the average US household of below $2,000 annually.
• Strong Demographics: Within a 3 mile radius of the property the population exceeds 155,000 with annual household income exceeding $70,000.
• Ideal Regional Access: The Property is less than a mile from the intersections of the I-15 Freeway and State Route 78 (two of San Diego’s most trafficked arterials), providing simple access to an expansive customer base.
MISSION AVENUE
ESCONDIDO BLVD.
6 | INTRODUCTION |
WASH & MART
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7 | INTRODUCTION |
WASH & MART
SITE PLAN: W. MISSION AVENUE
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FUEL STATION
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FOOD MART
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CAR WASH & FUEL STATION
©2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
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INVESTMENT ADVISORS
NICK FOSTERDirector
[email protected] Lic. #01831851
DANIEL TYNERDirector
(949) [email protected]
CA Lic. #01458927
FINANCING ADVISOR
GREG BROWNSenior Director(949) 798-4129
[email protected] Lic. # 01335204