Professional Documents
Culture Documents
: : Sam Alison
Lic. 01167124
818.907.4727
sam.alison@cbre.com
: : Dan Riley
Lic. 01057519
310.765.2595
dan.riley@cbre.com
: : Danielle Bower
E Lic. 01847718
DRIV
H 818.907.4729
B EAC
O danielle.bower@cbre.com
REN
MO
MORENO BEACH
AUTO MALL
:: W W W. P C G L A R E TA I L . C O M
The Offering Moreno Beach Plaza - Shops & Pads
Property Description Regional Map
Moreno Beach Plaza – Shops & Pads offers ±30,115 SF of retail shops and restaurants Lake Castaic
138 18 247
located within a ±250,000 SF Walmart (NAP) anchored shopping center in the city of Moreno Santa Clarita 14
Apple Valley 18
Valley, California. The shopping center is well-positioned with tremendous freeway visibility, SAN BERNARDINO COUNTY
Hesperia
situated at the southwest corner of the Moreno Valley Freeway (CA Hwy 60) and Moreno 5
2
Beach Drive, with over 78,000 vehicles passing per day. Moreno Beach Plaza - Shops and 15 Summit
Wrightwood
SAN BERNARDINO 18
LOS ANGELES COUNTY Silverwood Lake NATIONAL FOREST
Pads also benefits from tremendous retail synergy from Moreno Beach Auto Mall and 1.1 118
2
ANGELES NATIONAL FOREST 138 Lake Arrowhead
million square feet of neighboring retail property including tenants such as a Super Target, Chatsworth 5 210
Burbank
Mount Baldy
215 Arrowhead
DLA N D BLVD
D
0.5% assumption SUNN
RD
MO R N I N G RI
YM
SUNNYMEAD
STA
EAD
Investment Highlights
N VI
RANCH LAKE
PIGEON PASS RD
RE
RAN
O
NY
CH
CA
KW
P
Moreno Beach Plaza - Shops & Pads offers an investor a highly desirable retail investment BOX SPRINGS Y
DGE
MOUNTAIN
DR
MORENO VALLEY
EQUESTRIAN
HEACOCK ST
PARK
Opportunity to acquire newly constructed (2005/2006) shops and pad tenants within a
REDLAND BLVD
NORTON
highly successful community shopping center shadow anchored by Walmart. IRONWOOD AVE IRONWOOD AVE IRONWOOD AVE
YOUNGLOVE
RESERVE
Tremendous in place debt to assume with over 10 years remaining to loan maturity (Aug.
MORENO BEACH PLAZA
2020) and 6.17% interest rate. 60
60 SHOPS & PADS 60 M O RENO FW Y
PIGEON PASS RD
V A LLEY
PERRIS BLVD
DAY ST
MO
Stable investment with 96% occupancy, 67% nationally recognized tenants including RE
NO C H DR
HEACOCK ST
GIL
Wendy’s, El Pollo Loco, Starbucks and Payless ShoeSource. MA
BEA
NS
COTTONWOOD AVE P RI
NG
NASON ST
Dominant trade area location within Moreno Valley, CA with over 1.1 million SF of retailers ALESSANDRO BLVD
SR
D
adjacent to the Moreno Beach Drive/CA Hwy 60 interchange. ALESSANDRO BLVD ALESSANDRO BLVD ALESSANDRO BLVD
2009 Est. Traffic Counts Vehicles Per Day CACTUS AVE CACTUS AVE
RENO BEACH DR
DY DR
CA Highway 60 78,200 F KE
NNE
LASSELLE ST
JO HN
PERRIS BLVD
Moreno Beach Drive 16,800 MORENO
MO
RANCH
MARCH FIELD IRIS AVE GOLF CLUB
215 MARCH AIR PARK
RESERVE BASE
2009 Est. Demographics 3-Mile 5-Mile IR I S A V E LAKE PERRIS
STATE RECREATION AREA
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Aerial Photograph Moreno Beach Plaza - Shops & Pads
AV E
NEW HOME
LY P TU S
DEVELOPMENT
275 NEW HOMES
CA
EU
MORENO BEACH DRIVE
MORENO VALLEY
AUTO MALL
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Aerial Photograph Moreno Beach Plaza - Shops & Pads
OR
REDLANDS BLVD
NASON ST
EN
MORENO BEACH
EUCALYPTUS AVE PLAZA
O
KITCHING ST
BEACH
MORRISON ST
QUINCY ST
B LVD
INDIAN ST
COTTONWOOD AVE
LASSELLE ST
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Property Photographs Moreno Beach Plaza - Shops & Pads
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Property Photographs Moreno Beach Plaza - Shops & Pads
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Site Plan Moreno Beach Plaza - Shops & Pads
MORENO BEACH DR
105 Vacant 1,200
106 Angel’s Nails/Happiness Nails 1,950
107 Postal Annex 1,502
NOT 108 Service Plus Credit Union 3,150
A PART
12641 Moreno Beach Dr.
NOT A PART Del Taco 2,446
488-100-013
488-100-012 12671 Moreno Beach Dr.
±0.68
0.68 Acres
Wendy’s 2,500
12821 Moreno Beach Dr.
488-100-014
±1.06
1.06 Acres El Pollo Loco 2,500
±20.68 Total Owned GLA 30,115
Acres
Vacant 1,200
Not A Part 488-100-016
223,637 SF NOT A PART Occupied 28,915
488-100-015 ±0.75
0.75
±0.73
0.73 Acres
Acres
488-100-019
488-100-19
±0.56
0.56
Acres
488-100-018 MORENO VALLEY
1.38 Acres
±1.38
AUTO MALL
NOT
A PART
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Area Overview Moreno Beach Plaza - Shops & Pads
As California’s job creation leader for more than a decade, Southern California’s Inland With the tremendous growth in the population, Riverside County has also shown strong
Empire is attracting the interest of business, real estate, and site selection executives both growth in the nonagricultural wage and salary employment. Payroll employment for the
around the country and the world. From 1990 through 2004, the Inland Empire added Riverside/San Bernardino area is anticipated to continue to grow approximately 4% in 2008.
437,000 new jobs, which represented 21% of the total 2.1 million jobs created in California. The largest employment gain is expected in the administration and support services area,
The Inland Empire is projected to add 409,000 jobs between 2000 and 2010, with a retail trade, government, and transportation and utilities.
projected retail growth of over 20% during that period.
Moreno Valley
The retail market in the Inland Empire continued to be impacted by strong demand and Incorporated in 1984, Moreno Valley has been ranked as
limited existing inventory for retail space in 2006. The overall vacancy rate for 3rd quarter the sixth fastest growing city in California and 26th fastest
of 2007 raised slightly to approximately 6%, with 14.13 million square feet of retail space growing city in the nation for the last two years. A relatively
under construction and an additional 41.47 million square feet of space planned to be young city, its rapid growth in the 1980s and the 2000s
developed. As a result, the Inland Empire is destined to remain the driving force in the propelled it to its current status as the second-largest city in
Southern Californian economy with a 2008 projection for retail sales to be in excess of Riverside County by population. However, despite the soaring
$51.6 billion. growth over the past few years, Moreno Valley has been
successful in maintaining a small town feel while building up its big city amenities. With a
Riverside-San Bernardino Area Economic Indicators strong economic base, Moreno Valley is dedicated to businesses and families, creating a
superb quality of life, and a true sense of community.
Total Per Capita Taxable Housing Total
Population Nonfarm Unemp. Personal Personal Retail Unit Nonresid.
on July 1 of Employment Rate Income Income Sales Permits Bldg. Perm. Retail sales within Moreno Valley have moved steadily upward with a 110% increase in
(000s) (avg., 000s) (avg.,%) ($ bil.) ($) ($ bil.) Issued ($ millions) sales since 2000. In addition, Moreno Valley retailers consistently produce higher sales per
2000 3,281.4 988.4 5.3 74.787 22,791 24.992 21,990 1,536 square foot than the state average for
2001 3,393.2 1,029.7 5.5 80.406 23,696 26.699 27,541 1,423 comparable stores. One reason for $35,000
2002 3,501.6 1,064.5 6.6 84.151 24,032 28.570 33,280 1,473 the City’s strong retail performance $30,000
$30,326
2003 3,636.5 1,099.2 6.7 89.500 24,612 31.936 43,001 1,720 stems from Moreno Valley residents $24,717
2004 3,769.1 1,160.0 6.1 97.300 25,815 37.194 52,696 2,485
having an extremely high level of $25,000
2005 3,899.1 1,222.0 5.3 104.100 26,698 41.960 50,818 2,394
2006 4,020.9 1,271.2 4.9 111.900 27,830 45.820 39,156 2,852 discretionary spending compared $20,000 $17,299 $17,497
2007e 4,117.9 1,307.9 5.2 117.200 28,461 48.707 21,550 3,035 to residents of the neighboring four $15,000
2008f 4,196.9 1,344.7 5.4 122.500 29,188 51.629 19,900 3,215 counties in Southern California, as is $10,520
2009f 4,282.9 1,386.2 5.1 129.100 30,143 55.088 22,100 3,360 detailed in the graph to the right. $10,000
$5,000
$0
LA County San Diego County Orange County Inland Empire Moreno Valley
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New Business Development Map Moreno Beach Plaza - Shops & Pads
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Retail Competition Map Moreno Beach Plaza - Shops & Pads
854 HOME
DEVELOPMENT
854 HOME
DEVELOPMENT
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New Housing Developments Map Moreno Beach Plaza - Shops & Pads
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Demographic Map Moreno Beach Plaza - Shops & Pads
Blvd
Redlands Blvd
Saann
S 1 Dot = 100 People
TTiim
Redlands
mootte
Rd
Pass Rd
RRee eoo
cchhh
C
Caanny
yoonn 2008 Average Household Income
Pigeon Pass
eeeCCC R
Rdd
aannn estimated by block group
yyyoo
Pigeon
nn R $75,000 or more
Rdd
$60,000 to $75,000
$45,000 to $60,000
$30,000 to $45,000
Blvd
Manzanita Ave
Manzanita Ave
Blvd
Redlands Blvd
less than $30,000
Dr
Beach Dr
Redlands
Redlands
Moreno Beach
Avvee
odd A
wooo
Moreno
w
Iroonn
Ir
Cottonwood Ave
Cottonwood Ave
Heacock
St
Nason St
Alessandro Blvd
Alessandro Blvd
Nason
Alessandro Blvd
Alessandro Blvd
Cactus Ave
Cactus Ave Cactus Ave
Cactus Ave
St
Lasselle St
Moreno Valley
Moreno Valley
Lasselle
John FF Kennedy
John Kennedy Dr
Dr
Rd
Davis Rd
St
Miles
Miles
Miles
Miles 1.5
1.5
1.5
1.5
Kitching St
Davis Miles
Miles
Miles
Miles
Miles
Miles
Miles
Miles 1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
Blvd
Perris Blvd
KM
KM
KM
KM
KM
KM
KM
KM 2
22
222
222
22
Kitching
KM
KM
KM
KM 2
Perris
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Demographic Report Moreno Beach Plaza - Shops & Pads
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Rent Roll Moreno Beach Plaza - Shops & Pads
Owned GLA
12751 Moreno Beach Dr.
101 Starbucks 1,700 03/05/06 03/31/16 Current $5,576 $3.28 $3.30 None Two 5-Year Options Includes drive thru.
04/01/11 $6,120 $3.60 1st option @ $6,698/month
2nd option @ $7,344/month
180 days notice
102 Ono Hawaiian BBQ 1,575 12/13/05 12/31/12 Current $4,174 $2.65 $3.00 None One 7-Year Option
01/01/10 $4,675 $2.97 12% increase 1/1/13 and 1/1/16
170 days notice
102 4G/GSM Wireless 1,200 02/08/06 02/28/11 Current $3,037 $2.53 $2.70 None One 5-Year Option
03/01/10 $3,159 $2.63 FMV
360 days notice
103 Payless Shoe Source 2,882 03/15/06 03/31/16 Current $6,480 $2.25 $2.50 5.0% Two 5-Year Options
04/01/11 $7,452 $2.59 Natural 1st option @ $8,570.04/month
2nd option @ $9,856.80/month
90 days notice
12831 Moreno Beach Dr.
101 Mr. You’s 2,120 01/06/06 01/31/16 Current $5,898 $2.78 $2.80 None Two 5-Year Options
01/01/11 $6,311 $2.98 7% increases every 30 months
06/01/13 $6,752 $3.19 starting with the last rent increase
11/01/15 $7,225 $3.41 360 days notice
102 Quizno’s 1,300 02/09/06 02/08/16 Current $3,686 $2.84 $2.85 None One 10-Year Option
01/01/11 $3,870 $2.98 5% increases every 30 months
06/01/13 $4,063 $3.13 starting with the last rent increase
11/01/16 $4,266 $3.28 270 days notice
103 Juice It Up 1,080 01/12/06 01/31/16 Current $2,916 $2.70 $2.75 None One 10-Year Option
01/01/11 $3,149 $2.92 8% increases every 30 months
06/01/13 $3,401 $3.15 starting with the last rent increase
11/01/15 $3,673 $3.40 360 days notice
104 Sushi Palms 1,500 01/05/06 01/31/16 Current $4,217 $2.81 $2.85 None One 10-Year Option
02/01/10 $4,474 $2.98 FMV
02/01/11 $4,608 $3.07 180 days notice
02/01/12 $4,746 $3.16
02/01/13 $4,889 $3.26
02/01/14 $5,035 $3.36
02/01/15 $5,186 $3.46
105 Available/Lease Pending 1,200 01/01/10 01/01/15 Current $0 $0.00 $2.95 None Landlord negotiating with multiple tenants.
01/01/10 $3,500 $2.92
01/01/11 $3,605 $3.00
01/01/12 $3,713 $3.09
01/01/13 $3,825 $3.19
01/01/14 $3,939 $3.28
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Rent Roll (cont.) Moreno Beach Plaza - Shops & Pads
106 Angel’s Nails/ 1,950 01/05/06 01/31/16 Current $5,434 $2.79 $2.80 None Two 5-Year Options
Happiness Nails 02/01/10 $5,597 $2.87 FMV
02/01/11 $5,764 $2.96 360 days notice
02/01/12 $5,937 $3.04
02/01/13 $6,116 $3.14
02/01/14 $6,299 $3.23
02/01/15 $6,488 $3.33
107 Postal Annex 1,502 01/09/06 01/31/13 Current $4,299 $2.86 $2.85 None One 7-Year Option
02/01/10 $4,428 $2.95 3% annual increases
02/01/11 $4,561 $3.04 270 days notice
02/01/12 $4,697 $3.13
108 Service Plus 3,150 02/13/06 02/28/13 Current $9,572 $3.04 $3.75 None One 7-Year Option
Credit Union 03/01/10 $9,859 $3.13 FMV
03/01/11 $10,155 $3.22 270 days notice
03/01/12 $10,459 $3.32
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Lease Notes Moreno Beach Plaza - Shops & Pads
102 Ono Hawaiian BBQ 1,575 12/13/05 12/31/12 CAM: Prorata share
Taxes: Prorata share
Insurance: Prorata share
Management Fee: 3% minimum rent
Admin. Fee: None known
Exclusive: Primary operation of a Hawaiian BBQ/Japanese restaurant (not incl. sushi and Chinese food)
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 5 days
Security Deposit: $4,173.75
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Lease Notes (cont.) Moreno Beach Plaza - Shops & Pads
103 Payless Shoe Source 2,882 03/15/06 03/31/16 CAM: Prorata share
Taxes: Prorata share
Insurance: Prorata share
Management Fee: None known
Admin. Fee: 15% CAM excl. taxes and insurance
Exclusive: Primary operation of a retail discount shoe store under 5,000 SF.
Kick-Out: None known
Continuous Operation: None known.
Sublease/Assign: Landlord consent not required
Prop 13 Tax Protection: None known
Co-Tenancy: If Walmart fails to operate for one year, tenant may cancel the lease with 90 days notice starting in the 6th
lease year, unless a suitable replacement tenant opens in Walmart’s space.
Estoppel: Tenant must comply within 20 days
Security Deposit: $0
Gross sales: Tenant must report
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Lease Notes (cont.) Moreno Beach Plaza - Shops & Pads
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Lease Notes (cont.) Moreno Beach Plaza - Shops & Pads
108 Service Plus Credit Union 3,150 02/13/06 02/28/13 CAM: Prorata share, capped at $0.55/month per square foot, with annual increases capped at 105%.
Cap does not include taxes, insurance, utilities, trash, painting and grinding/slurrying the parking lot.
Taxes: Prorata share
Insurance: Prorata share
Management Fee: 3% minimum rent
Admin. Fee: None known
Exclusive: Primary operation of a
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 10 days
Security Deposit: $0
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Lease Notes (cont.) Moreno Beach Plaza - Shops & Pads
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Lease Notes (cont.) Moreno Beach Plaza - Shops & Pads
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First Year In-Place Net Operating Income Moreno Beach Plaza - Shops & Pads
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Projected Net Operating Income Moreno Beach Plaza - Shops & Pads
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Reversion
For the Years Ending Dec-2010 Dec-2011 Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020
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Cash Flow Assumptions Moreno Beach Plaza - Shops & Pads
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First Year Income Detail Moreno Beach Plaza - Shops & Pads
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Tenant Profiles Moreno Beach Plaza - Shops & Pads
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Tenant Profiles (cont.) Moreno Beach Plaza - Shops & Pads
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Tenant Profiles (cont.) Moreno Beach Plaza - Shops & Pads
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Moreno Beach Plaza - Shops & Pads
This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further
interest in the acquisition of Moreno Beach Plaza - Shops & Pads (“Property”).
This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of
affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require
to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and
Sam Alison are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the
Lic. 01167124 Owner and CB Richard Ellis. Therefore, all projections, assumptions and other information provided and made herein are subject to
818.907.4727 material variation. All references to acreages, square footages and other measurements are approximations. Additional information
and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. Neither the Owner
sam.alison@cbre.com nor CB Richard Ellis, nor any of their respective directors, officers, affiliates or representatives make any representation or warranty,
expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents and no legal commitment or
Dan Riley obligation shall arise by reason of your receipt of this Memorandum or use of its contents. We obtained the information contained herein
Lic. 01057519 from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation
about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or
310.765.2595 financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may
dan.riley@cbre.com not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation
of the property and transaction.
Danielle Bower
The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the
Lic. 01847718 Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this
818.907.4729 Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer
danielle.bower@cbre.com to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and
approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and
treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the
prior written authorization of the Owner or CB Richard Ellis. You also agree that you will not use this Memorandum or any of its contents
in any manner detrimental to the interest of the Owner or CB Richard Ellis.
In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do
CB Richard Ellis, Inc. not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to
Broker Lic. 00409987 review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum
111 Universal Hollywood Drive in any manner.
Suite 2700
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to
Los Angeles, CA 91608 CB Richard Ellis.
818.907.4720 F
September 2009
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