Canal Farms Shopping Center - 1313 East Pacheco Boulevard, Los Banos, CA 93635 - Northgate Commercial Real ...
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CONFIDENTIAL OFFERING MEMORANDUM
Canal Farms Shopping Center 1313 East Pacheco Boulevard, Los Banos, CA 93635
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION
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3 10 15
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Executive Property Location/Economic
Location/Economic Financial
Financial
Summary Overview Overview
Overview Information
Information
Offering Summary Property
PropertyDescription
Highlights Location
RegionalOverview
Economic 10-Year
Pro Cash
FormaFlow
Cash
Projection
Flow
Investment
PropertyHighlights
Aerial Design
Designand
& Construction
Construction Retail Market
Overview
Overview Lease
RentExpiration
Roll
Investment
Offering Procedure
Highlights Site Plan Rent
Retail
Comparables
Market Overv Schedule Footnotes
Offering
Location
Procedure
Map Tenant Profiles and Assumptions
Table of
Contents
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 03
02
Executive
Summary
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 03
Offering Summary
This offering presents an appealing opportunity to acquire a value-add retail center in a growing
region of northern California.
NAI Global and NAI Pence Capital are pleased to exclusively offer the
opportunity to purchase Canal Farms Shopping Center (the
“Building(s)”, “Center”, or “Property”), a multi-tenant retail center
located in Los Banos, California. The Property is located at the
southwest corner of E. Pacheco Boulevard (CA-152) and Mercey
Springs Road (CA-165) within the City of Los Banos’ primary retail and
commercial corridor and a few miles east of Interstate 5.
Canal Farms Shopping Center is comprised of 110,535 RSF and is
currently 47.7% occupied by a mix of regional and national tenants.
The Center is anchored by Rite Aid and Rent-A-Center and includes a
number of service oriented businesses and restaurants. The Property
offers the opportunity for a future owner to significantly add value to the
Center through renovation and lease up including a currently vacant
former anchor store of approximately 38,234 RSF.
The Property is strategically located in Los Banos’ main retail corridor
directly across from a Save Mart and Ross Dress For Less anchored
shopping center and numerous other retailers. The Property’s location
has exposure to over 15,000 vehicles per day (10,000 on Pacheco
Blvd. and 5,000 on Mercey Springs Road) and has a population of
approximately 66,600 residents within a twenty mile radius.
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 04
1313 East Pacheco Boulevard
Address:
Los Banos, CA 93635
Size: 110,535 SF
Year Built: 1987
Number of Buildings: Three (3)
Regular Spaces – 351
Parking: Handicap Spaces – 12
Total Spaces – 363 (3.3/1,000 SF)
Occupancy: 47.7%
Site Area: 7.70 Acres
026-280-013-000
026-280-019-000
Parcel ID’s (Merced County):
026-280-020-000
026-280-016-000
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 05
Property Aerial 1313 East Pacheco Boulevard, Los Banos CA 93635
Canal Farms 110,535 7.7
Shopping Center Rentable Square Feet Acres
Canal Farms
Shopping Center
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 06
Investment Highlights
Canal Farms is ideally located in the San Juaquin Valley a few miles east of Interstate 5 which traverses
Highly Desirable the entire State of California and is the primary highway between the Los Angeles and San Francisco
Location In Key Retail regions.
Corridor
The Property is ideally located at the intersection of E. Pacheco Boulevard and Mercey Springs Road
which is in the primary commercial hub for the region. The area also serves as a gateway to Yosemite
Nearby Retailers: National Park and numerous wildlife refuge areas and experiences a significant tourist population
year-round.
The area has seen an influx of people from the San Jose/Silicon Valley region that are looking for more
affordable housing and further out-migration from these ares into the region is expected to continue.
Canal Farms
Shopping Center
Stockton
San Francisco
San Jose
Merced
Los Banos
Fresno
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 07
Investment Highlights
Attractive,Value-Add The Property benefits from both local and nationally recognized tenants including: Rite Aid, Rent-A-Center, several
restaurants, a health food store, and a nail salon. Most of the tenants at the Property are service oriented and ecommerce
Investment resilient.
As of September 2019, the Property is 47.7% occupied, showcasing the opportunity for new ownership to increase
occupancy and drive additional revenue at the Property.
Shopping Center vacancy in the Property’s submarket is approximately 7.4%, and there are currently no shopping centers
being built, creating a competitive environment for retail tenants in the area.
The current in-line vacancies have been well maintained and would allow for immediate lease-up by a new tenant.
The Property is 47.7% occupied by 12 tenants and is currently generating positive NOI of over $346,000 annually.
In Place Cash Flow
Opportunity Most of the in-place tenants have been at the Property for over 10 years, some approaching 20 years, showing a strong
commitment to the location.
Tenants at the Property are reportedly performing well at the center and are confident in the continued growth of the retail
corridor.
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 08
Offering Procedure
The subject of this offering is the fee simple interest in approximately Distribution of Offering Materials and Review Period: All due diligence
110,535 square feet of GLA on 7.7 acres of land. No asking price has materials that will be provided will be made available through the Real
been established. The Property is being offered free and clear of any Capital Markets website, www.rcm1.com.
mortgage financing, or management agreement.
Tour Dates: Private tours of the Property are being offered by
This transaction will be conducted through an offering process in appointment only. Please schedule your site visit at your earliest
accordance with the terms and provisions of this Offering convenience, by sending an email to amilston@naiglobal.com or
Memorandum, which NAI Global/NAI Pence Capital may, in its sole xavier@ngcip.com. Please provide two preferred tour dates and times
discretion, amend or update (provided that NAI Global/NAI Pence and include the names and contact information of the individuals who
Capital has no obligation to amend or update the information included will be attending the tour.
herein or otherwise made available to prospective purchasers). Each
prospective purchaser has signed a Confidentiality Agreement in form Initial Offers Due: The official bid date will be determined and
and substance satisfactory to NAI Global/NAI Pence Capital as a communicated via the RCM website at a later date.
condition of its receipt of this Offering Memorandum.
To ensure confidentiality and accuracy, bids will only be accepted via
Inquiries concerning the procedures outlined in this Offering the Offer Room located on the Real Capital Markets website. NAI Global
Memorandum may be directed to: encourages all prospective purchasers to review the bid instructions
prior to the Offer Date and contact Arthur Milston or Xavier Santana
should they have any questions.
SALES CONTACTS
Arthur Milston Xavier Santana
Senior Managing Director CEO & Broker
NAI Global NAI Pence
212-705-5148 925-226-2455
amilston@naiglobal.com xavier@ngcip.com
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 09
Property
Overview
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 10Property Highlights
Canal Farms Shopping Center is situated on a 7.70-acre site improved with
Address: 1313 East Pacheco Boulevard
110,535 square feet of retail premises, with 17 individual tenant suites. Los Banos, CA 93635
GLA: 110,535 SF
The Property is located at the southwest corner of E. Pacheco Boulevard
(CA-152) and Mercey Springs Road (CA-165) within the City of Los Banos Occupancy: 47.7%
primary retail and commercial corridor.
Site Size: 335,420 sf. / 7.70 ac.
The Center is anchored by a 31,472 square foot Rite Aid store and also
includes a vacant 38,234 square foot former Save Mart grocery store that is Year Built/Renovated: 1987
currently being marketed for lease.
Number of Buildings: Three (3)
In-line suite sizes at the Center range from 750 square feet to 9,000 square Parking:
Regular Spaces – 351
Handicap Spaces – 12
feet and as of the analysis start date of January 1, 2020, 5 suites will be Total Spaces – 363 (3.3/1,000 SF)
vacant and the Property will be 47.7% occupied. An additional 6 suites 026-280-013-000
Parcel ID: 026-280-019-000
comprising 7,630 square feet (7% of total GLA) are occupied by tenants that 026-280-020-000
026-280-016-000
are either month-to-month or will have lease expirations prior to the end of
2020. Both of these factors provide flexibility regarding future tenancy and Zoning: (H-C) Highway Commercial District
the opportunity to enhance revenue and value.
The Property is highly visible off of both E. Pacheco Boulevard and Mercey
Springs Road with traffic counts of approximately 10,000 and 5,000 vehicles
per day respectively.
The Center is easily accessible via multiple curb cuts along E. Pacheco
Boulevard and Mercey Springs Road and is located at the primary
intersection of the region’s north-south-east-west corridors.
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 11Design & Construction
Base Building and Structural
Foundation: Reinforced Concrete
Frame: Wood
Exterior Walls: Wood & Concrete Block
Roof: Flat roof with built-up composition
Mechanical
Electrical Pad-mounted transformers connected to main disconnects
HVAC: Roof mounted heating and cooling units
Plumbing Domestic copper and PVC water piping
Sprinklers: Partially sprinklered and smoke detectors
Interior Finishes
Interior Walls Painted drywall, wall paper, tile, metal, concrete block
Storefronts Aluminum framed, plate glass storefronts
Floor Coverings: Carpet, hardwood, concrete, ceramic tile, vinyl tile
Ceilings: Suspended acoustical tile or intentionally exposed structure
Lighting Standard commercial fluorescent fixtures
Dock Doors: At rear of two largest units
EXECUTIVE SUMMARY
EXECUTIVE| SUMMARY
PROPERTY |OVERVIEW
PROPERTY| OVERVIEW
TENANT INFORMATION | ECONOMIC
| LOCATION & LOCATION &OVERVIEW
ECONOMIC| OVERVIEW
FINANCIAL |INFORMATION
FINANCIAL INFORMATION 05
12Site Plan
1313-D
1313-C
1321-B 1321-A 1313-B
±9,000 SF ±8,500 SF
1325
1317 Pacheco Blvd
±31,472 SF
1313-A
E PACHECO BLVD
1329-B
1329-A
TENANT ROOSTER
SUITE TENANT SF
1313-A China #1 Buffet 3,000
1313-B Elegant Nails Salon 1,500
1313-C Cricket Wireless 750
1313-D Taqueria El Rodeo 3,500
1317 Rite Aid 31,472
1321-A AVAILABLE 8,500
1321-B AVAILABLE 9,000 1337 Pacheco Blvd
1325
1329-A
Advance America
AVAILABLE
1,665
1,050
±38,234 SF 152
1329-B Laundry Day 1,764
1337 AVAILABLE 38,234
1341-A Rent-A-Center 4,500
1341-F Subway 1,100
1341-H
1341-A
1341-F
1341-G
1341-J
1341-I
1341-G Trini's Health Food 900
1341-H Cigarettes 4 Less 900
1341-I AVAILABLE 975
1341-J Teriyaki House 1,725
165 MERCEY SPRINGS ROAD
Note: Not to scale. Please refer to Property survey in virtual deal room
EXECUTIVE SUMMARY
EXECUTIVE| SUMMARY
PROPERTY |OVERVIEW
PROPERTY| OVERVIEW
TENANT INFORMATION | ECONOMIC
| LOCATION & LOCATION &OVERVIEW
ECONOMIC| OVERVIEW
FINANCIAL |INFORMATION
FINANCIAL INFORMATION 05
13Tenant Profile
Rite Aid Headquartered in Camp Hill, Pennsylvania, Rite Aid is the largest
drugstore chain on the East Coast and the third largest in the U.S. The
Square Feet Occupied: 31,472 SF
company ranked No. 94 in the 2018 Fortune 500 list of the largest
% of RSF: 28.50% United States corporations by total revenue. Founded in 1962 in
Scranton, Pennsylvania, the company is currently publicly traded on the
Website: www.riteaid.com New York Stock Exchange under the symbol RAD. Its top competitors
are CVS and Walgreens. In September 2017, Walgreens purchased
Suite: 1317
1,932 Rite-Aid stores for $4.38 billion. The chain currently has 2,466
11/30/2022 (Tenant has the right to locations with over 53,000 employees and annual revenues above
Lease Expiration:
terminate lease with 1 year prior notice)
$21.6 billion.
Options: Four, Five-year options
Rent A Center A rent-to-own industry leader, Plano, Texas-based, Rent-A-Center, Inc.,
is focused on improving the quality of life for its customers by providing
Square Feet Occupied: 4,500 SF
them the opportunity to obtain ownership of high-quality, durable
% of RSF: 4.10% products such as consumer electronics, appliances, computers,
furniture and accessories, under flexible rental purchase agreements
Website: www.rentacenter.com with no long-term obligation. The Company owns and operates
approximately 2,300 stores in the United States, Mexico, and Puerto
Suite: 1341-A
Rico, and approximately 1,200 Acceptance Now kiosk locations in the
Lease Expiration: 11/30/2021 United States and Puerto Rico. Rent-A-Center Franchising International,
Inc., a wholly owned subsidiary of the Company, is a national franchiser
Options: None
of approximately 280 rent-to-own stores operating under the trade
names of "Rent-A-Center", "ColorTyme", and "RimTyme".
EXECUTIVE SUMMARY
EXECUTIVE| SUMMARY
PROPERTY |OVERVIEW
PROPERTY| OVERVIEW
TENANT INFORMATION | ECONOMIC
| LOCATION & LOCATION &OVERVIEW
ECONOMIC| OVERVIEW
FINANCIAL |INFORMATION
FINANCIAL INFORMATION 05
14Location &
Economic
Overview
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 15California Greater Central Valley
Located in the heart of California, the Great Central Valley encompasses eight counties: Fresno, Kern, Kings, Madera, Merced, San
Joaquin, Stanislaus and Tulare. The Valley is bordered by the San Francisco Bay area to the west, the Sierra Mountains to the East,
Sacramento, the state’s capital, to the north, and the Los Angeles MSA to the south. The region is considered an area of potential growth
in California, due to its comparatively low costs and proximity to the Bay Area. Growth in Silicon Valley is expected to fuel further growth
in the area, as high costs and scarce labor pools cause economic growth to spillover into the Central Valley.
Agriculture is a leading sector of the Central Valley’s economy. The region provides approximately 25% of the nation’s food and
approximately 40% of all fruits, nuts, and vegetables consumed. Policy leaders in the area are attempting to attract value-added
manufacturing companies that are related to agricultural production, to the area. These companies include juice producers, general fresh
food processors, and cheese producers—including one of the world’s largest mozzarella cheese plants. The region has also seen growth
in the energy sector, including renewable energy production—biofuels, solar and wind—as well as hydraulic fracturing. These and other
industries are helping to bring higher wage jobs to the Valley than it has historically experienced.
75% of the Supplies 8% of 20% of the Produces 40%
More than 250 irrigated land in U.S. agricultural Nation's of the Nation's
different crops California output groundwater fruits/nuts, and
(by value) supplied other table foods
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 16Economic Overview
California is the 5th largest economy in the world and the
largest economy in the United States. Merced County is
located at the heart of the regional economy and the County
and City municipalities are a major source of employment
along with agricultural related industries, retailing,
manufacturing, food processing and tourism.
At the heart of the large California market, Merced County’s
vast transportation infrastructure provides an ideal,
centralized location, to access to the State’s main markets
including Los Angeles, the San Francisco Bay Area,
Sacramento, San Diego and Fresno. Additionally, the
Merced County location also offers quick one day ground
transportation to nearby markets such as Las Vegas,
Portland, Phoenix and Reno.
The region also offers an extremely efficient supply chain
connectivity to innovative, high-tech markets in the US and
North America, and to more distant markets. Merced
County’s business climate provides the ideal situation to
foster new ventures and grow established ones. The County
is uniquely positioned to support a range of supply chain
requirements including high-velocity air cargo logistics,
low-cost and dependable ocean transport and fast overland
domestic connections.
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 17Transportation
OCEAN
For inbound and outbound ocean transport, Merced County has easy access to major West Coast seaports and an array of ocean carrier routes to
Asia, South America and Europe. The Port of Oakland is less than two hours away by truck and the Ports of Los Angeles and Long Beach are located
just south via either CA99 or Interstate 5. Merced County has recently entered into a partnership with the Port of Los Angeles to directly support client
requirements. Being the busiest seaport in North America with the most extensive global route network, having the Port of Los Angeles as a direct
resource will be a very significant benefit to existing businesses and to those that are considering California as an investment location
RAIL
Both the Union Pacific Railroad (UP) and the Burlington Northern and Santa Fe Railroad (BNSF) have transcontinental mainline tracks that run
through Merced County. Having access to both of these Class One Railroad’s national route network is a tremendous advantage for businesses
moving large quantities of cargo or heavy, oversized cargos. The BN services directly into the Mid-California International Trade District, while
both rail systems are proximate to both rail lines. For access to long-haul container rail, there are multiple intermodal ramp access points located
nearby at locations just north and south of the County.
AIR
With four major airports within two hours (San Francisco (SFO), San Jose (SJC), Oakland (OAK), and Sacramento(SMF)), Merced County
provides direct passenger and cargo connectivity to North American markets, as well as key international markets in Europe, South America
and Asia. Taken together, these four airports offer unrivaled passenger route connectivity to North American and oversea markets –
producing a very strong network for high-speed point-to-point belly cargo. Combined with easy access to Los Angeles (LAX), businesses in
Merced County can also access integrator and freighter cargo service to just about every point on the globe.
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 18Merced County Overview
Merced County is located in the heart of the San Joaquin Valley (also known as the Central Valley) of California. As of the 2018 the County’s
total population was approximately 275,000, up from 210,554 at the 2000 census, and the total area of the county is approximately 1,980
square miles.
The City of Merced is the County seat and is the largest of six incorporated cities, which include Atwater, Livingston, Los Banos, Gustine,
and Dos Palos. There are eleven urban communities including, Castle, Delhi, Franklin/Beachwood, Fox Hills, Hilmar, Le Grand, Planada,
Santa Nella, University Community, Villages of Laguna San Luis and Winton.
Merced County Largest Employers
Employer Name Location Industry
Community Action Agency Merced Community Services
Costco Wholesale Merced Wholesale Clubs
Dole Packaged Foods LLC Livingston Food Products-Retail
E & J Gallo Winery Livingston Wineries (mfrs)
Foster Farms Livingston Poultry Processing Plants (mfrs)
Gallo Cattle Co Atwater Cheese Processors (mfrs)
Golden Valley Health Ctr Merced Pharmacies
Hilmar Cheese Co Hilmar Cheese Processors (mfrs)
J Marchini & Son Le Grand Farms
Liberty Packing Co Los Banos Packing & Crating Service
Live Oak Farms Le Grand Fruits & Vegetables-Growers & Shippers
Livingston Union School Dist Livingston School Districts
Mcoe Merced Educational Cooperative Organizations
Memorial Hospital Los Banos Los Banos Hospitals
Mental Health Svc For Merced Merced Mental Health Services
Merced County Human Svc Merced Government Offices-County
Mercy Medical Ctr Merced Merced Hospitals
Quad/Graphics Inc Merced Printers (mfrs)
Sensient Natural Ingredients Livingston Dehydrating Service (mfrs)
University of CA Merced Merced Schools-Universities & Colleges Academic
Walmart Merced Department Stores
Walmart Supercenter Atwater Department Stores
Weaver Union School District Merced School Districts
Western Marketing & Sales Atwater Farms
Yosemite Wholesale Warehouse Merced Warehouses
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 19Los Banos Overview
Los Banos is located in the Western portion of the San Joaquin Valley
and the Western portion of Merced County. The city is situated along
Highway 152, a major corridor between the Central Valley and the
southern part of the San Francisco Bay Area and is approximately five
miles east of interstate Route 5. State Highway 152 comprises the
primary east-west arterial through the City of Los Banos. It also provides
direct linkage over Pacheco Pass into the southern San Francisco Bay
Area.
Los Banos is projected to experience significant population growth due
to its proximity to the Monterey Bay area, especially San Jose and the
Silicon Valley, where housing supply is low and prices are unattainable
for many. As such, the workforce is setting its sights elsewhere and Los
Banos has become the bedroom community of the Silicon Valley.
With two state route highways, and its situation within five miles of an
interstate, Los Banos experiences a great deal of vehicular traffic
through the community. The area is a gateway to the Monterey Bay area
from the San Joaquin Valley with travelers from Fresno using State Route
152, the City’s major arterial. From the Bay area, the region is also the
gateway to Yosemite and the San Joaquin Valley for people traveling
from Monterey, Santa Cruz, and San Jose.
Demographics 3 miles 5 miles 10 miles 20 miles
Population
2019 40,875 41,972 43,957 66,624
2024 Projected 42,713 43,847 45,905 69,878
Growth 2019-2024 4.50% 4.47% 4.43% 4.84%
Households
2019 11,756 12,101 12,730 19,443
2024 Projected 12,310 12,666 13,319 20,376
Growth 2019-2024 4.71% 4.67% 4.63% 4.80%
Average Household Income
2019 $62,000 $62,100 $62,150 $71,878
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 20Retail Market Overview
Merced County, CA Retail Market
Canal Farms Shopping Center is located within the greater Merced County retail market which includes approximately 11.5 million
square feet of total retail GLA. Market highlights include:
Retail rents in the Merced metro increased by 1.5% year-over-year as of 19Q2, and have posted an average annual gain of 1.5% over the past
three years.
Vacancies in the metro were below the cycle average as of 19Q2, and trended downwards over the past four quarters.
Construction of 8,000 SF is currently underway, representing a 0.1% expansion of the existing inventory. Over the past three years, 65,000
SF has delivered, or a cumulative inventory expansion of 0.6%.
Over the past four quarters, 754,600 SF have sold, an inventory turnover of roughly 7%. This is essentially in line with the five-year average
turnover of 7%.
Over the past five years, employment has increased by 2.6% annually on average, compared to a 1.8% average increase nationally.
Merced County Los Banos
Overall Vacancy: 5.3% 7.4%
Quoted Rate (PSF): $14.06 $15.62
Number of Buildings: 1,249 224
12 Month Net Absorption (SF): 153K SF 43.7K SF
Inventory (SF): 11.5 Million SF 2.4 Million SF
Under Construction (SF): 7,800 SF 7,800 SF
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 21Rent Comparables
PROPERTY COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4
Property Name: Canal Farms Shopping Center Save Mart Center Stone Creek Plaza Atwater Village Atwater Town Center
Address: 1313 E. Pacheco Blvd 1400 S. Mercey Springs Rd 1405 E. Pacheco Blvd 351-605 Bellevue Rd 1085 Bellevue Rd
City, State: Los Banos, CA Los Banos, CA Los Banos, CA Atwater, CA Atwater, CA
Distance from Property: - 0.1 miles 3.0 miles 40miles 40 miles
Year Built/Renovated: 1987 1990/1999 2007 1977 2006
Occupancy: 47.70% 100% 83.80% 94.30% 35.00%
Property Size: 110,535 SF 91,739 333,615 SF 94,485 SF 87,888
Available Suite Size: 975-38,234 SF None 16,000 – 29,000 SF 1,800 – 3,600 SF 17,000 – 61,000 SF
Rent PSF/Yr. (Asking): $10.00 - $25.00 PSF $12.00 - $22.00 PSF $9.60 - $11.40 PSF $8.00 - $10.00 PSF $7.80 - $9.00 SF
Parking Ratio: 3.30/1,000 SF 2.54/1,000 SF 5.10/1,000 SF 1.30/1,000 SF 2.28/1,000 SF
Anchor Tenant Rite Aid Save Mart, Ross Target, Hobby Lobby Mi Pueblo, Rite Aid Available
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 22Rent Atwater Village
Atwater Town
Center
$7.80 - $9.00 PSF
Comparables
$8.00 - $10.00 PSF
94.3% Occupied 35.0% Occupied
Map
Save Mart Center
1400 S. Mercey Springs Rd.
Los Banos, CA
Stone Creek Save Mart
Plaza Center
$9.60 - $11.40 PSF $12.00 - $22.00 PSF
Stone Creek Plaza
83.8% Occupied 100% Occupied
1405 E. Pancheco Blvd.
Los Banos, CA
Atwater Village
351-605 Bellevue Rd. CANAL FARMS SHOPPING
Atwater, CA CENTER
1313 E. Pacheco Blvd. Los Banos, CA
Atwater Town Center
1085 Bellevue Rd.
Atwater, CA
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 23Financial
Information
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 24Assumptions
The following information is provided in the Financial Analysis Section to assist A copy of the following documents can be found in the Virtual Deal Room at
investors in their initial underwriting: www.rcm1.com
• Projected Cash Flow Statement • ARGUS File • Current Rent Roll
• Cash Flow Assumptions • T-12 Operating Statement • Historical Financials
• Detailed Rent Roll • Phase I Environmental Report • Title Commitment
• Property Survey
The following general assumptions have been made: General Assumptions
• Rite Aid is assumed to remain throughout the analysis period and Analysis Start Date 1/1/2020
exercise each of its remaining five (5) year options. Square Footage 110,535
• Static vacancy of 90.5% was assumed for the Property. Physical Occupancy Current Year 5
• The following tenants have lease expirations prior to December 31, 2020 47.70% 91.50%
Growth Rates Expenses Market Rent
which is the end of the first year of our analysis: Advance Cash, Subway,
2.00% 2.00%
Cigarettes For Less and Teriyaki House. All of these tenants are assumed
Static Vacancy 9.5% of RSF
to remain in-place through the end of the first year of this analysis and then
Credit & Collection Loss 3.0% of PGR
roll to market based on the market leasing assumptions included herein. Management Fee 3.0% of EGR
• Credit and Collection Loss is assumed at 2% for the Property, excluding Expenses Based on historical expenses
national credit tenants such as Rite Aid. Replacement Reserves $0.20 PSF
• Operating expenses are based on historical data and are assumed to
increase by 2% annually thereafter. Market Leasing Assumptions
• The pro forma assumes that the following vacant premises are leased Tenant TypeCash Flow Projections
Canal Farms Shopping Center Total Rentable SF 110,535
Los Banos, California Current Occupancy 47.7%
Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Dec-27 Dec-28 Dec-29 Dec-30
Average Physical Occupancy 47.7% 89.0% 89.4% 90.2% 90.5% 90.5% 89.5% 88.8% 90.2% 90.5% 0.0%
Lease Expiration (Initial Term Only) 6,140 8,400 36,472 1,764 - - - - - - -
Lease Expiration (% of Total SF) 6% 7.6% 33.0% 1.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Cumulative Lease Expiration (% of Total SF) 0 13.2% 46.2% 47.7% 47.7% 47.7% 47.7% 47.7% 47.7% 47.7% 47.7%
Year 1 PSF YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11
Potential Base Rent 18.98 2,097,872 1,299,917 1,307,980 1,316,525 1,329,685 1,336,565 1,354,803 1,383,960 1,400,943 1,410,615 1,418,236
Absorption & Turnover Vacancy (13.06) (1,444,087) (303,503) (298,205) (286,858) (284,815) (290,511) (326,329) (342,165) (316,714) (314,459) (320,748)
Scheduled Base Rental Revenue 5.91 653,785 996,414 1,009,775 1,029,667 1,044,870 1,046,054 1,028,474 1,041,795 1,084,229 1,096,156 1,097,488
Total Expense Recoveries 1.61 177,842 426,749 437,748 454,583 470,154 479,131 481,128 486,353 506,107 517,831 527,743
Potential Gross Revenue 7.52 831,627 1,423,163 1,447,523 1,484,250 1,515,024 1,525,185 1,509,602 1,528,148 1,590,336 1,613,987 1,625,231
Credit Loss (0.12) (13,528) (12,688) (12,937) (13,548) (14,250) (14,339) (13,664) (14,350) (15,341) (15,811) (15,911)
Effective Gross Revenue 7.40 818,099 1,410,475 1,434,586 1,470,702 1,500,774 1,510,846 1,495,938 1,513,798 1,574,995 1,598,176 1,609,320
Operating Expenses
Utilities (0.52) (57,900) (59,058) (60,239) (61,444) (62,672) (63,926) (65,205) (66,509) (67,838) (69,196) (70,580)
Repairs and Maintenance (0.68) (75,700) (77,214) (78,759) (80,333) (81,940) (83,580) (85,251) (86,957) (88,694) (90,469) (92,277)
Landscaping & Grounds (0.31) (33,800) (34,476) (35,165) (35,869) (36,587) (37,318) (38,064) (38,826) (39,602) (40,394) (41,202)
Security (0.82) (91,000) (92,820) (94,676) (96,570) (98,501) (100,471) (102,481) (104,530) (106,621) (108,753) (110,928)
Cleaning (0.22) (24,400) (24,888) (25,386) (25,894) (26,412) (26,940) (27,479) (28,028) (28,589) (29,160) (29,743)
Management Fee (0.22) (24,543) (42,314) (43,038) (44,121) (45,023) (45,325) (44,878) (45,414) (47,250) (47,945) (48,280)
Insurance (0.54) (59,700) (60,894) (62,112) (63,354) (64,621) (65,914) (67,232) (68,577) (69,948) (71,347) (72,774)
Real Estate Taxes (0.86) (94,700) (96,594) (98,526) (100,496) (102,506) (104,556) (106,648) (108,781) (110,956) (113,175) (115,439)
Non-Recoverable (0.09) (10,000) (10,200) (10,404) (10,612) (10,824) (11,041) (11,262) (11,487) (11,717) (11,951) (12,190)
Total Operating Expenses (4.27) (471,743) (498,458) (508,305) (518,693) (529,086) (539,071) (548,500) (559,109) (571,215) (582,390) (593,413)
Net Operating Income 3.13 346,356 912,017 926,281 952,009 971,688 971,775 947,438 954,689 1,003,780 1,015,786 1,015,907
Leasing & Capital Costs
Tenant Improvements - - (1,005,980) (49,419) (9,153) - - (29,928) (63,178) (18,893) - -
Leasing Commissions - - (373,814) (35,406) (8,581) - - (28,057) (42,645) (17,712) - -
Capex Reserve (0.20) (22,107) (22,549) (23,000) (23,460) (23,929) (24,408) (24,896) (25,394) (25,902) (26,420) (26,948)
Total Leasing & Capital Costs (0.20) (22,107) (1,402,343) (107,825) (41,194) (23,929) (24,408) (82,881) (131,217) (62,507) (26,420) (26,948)
Cash Flow Before Debt Service 2.93 324,249 (490,326) 818,456 910,815 947,759 947,367 864,557 823,472 941,273 989,366 988,959
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 26Rent Roll
Annual
% Of Lease Lease Annual Rent Inc. Rent Inc. Renewal
Suite Tenant Name RSF Base Reimbursements Comments
Total GLA Start End Base Rent Date Rate Options
Rent PSF
Anchor Premises
1317 Rite Aid (Thrifty Payless, Inc.) 31,472 28.5% 9/19/1986 11/30/2022 $6.50 $204,568 4*5 NNN Can cancel any option periord with 1 year notice
Total Anchors 31,472 28.5% $6.50 $204,568
In-Line Premises - Occupied
1313-A China Buffet 3,000 2.7% 4/9/2006 9/30/2021 $17.75 $53,244 Fixed CAM - RET & INS Net
1313-B Elegant Nails 1,500 1.4% 9/1/2007 8/31/2022 $28.13 $42,196 Fixed
1313-C Cricket Wireless 750 0.7% 11/1/2014 12/31/2020 $24.00 $18,000 None
1313-D Taqueria El Rodeo 3,500 3.2% 10/1/1999 4/30/2022 $21.20 $74,203 NNN - Plus 15% Admin
1325 Advance America Cash Advance 1,665 1.5% 9/25/1995 9/30/2020 $21.50 $35,798 NNN - Plus 15% Admin
1329-B Laundry Day 1,764 1.6% 1/24/1990 9/30/2023 $20.40 $35,986 10/1/2020 $37,044 2*5 NNN - Plus 10% Admin
10/1/2021 $38,102
10/1/2022 $39,161
Option 1 3%/annual
Option 2 3%/annual
1341-A Rent-A-Center 4,500 4.1% 8/1/2001 11/30/2021 $16.44 $73,980 12/1/2019 $81,000.00 Fixed CAM - RET & INS Net
1341-F Subway 1,100 1.0% 3/10/1998 8/31/2020 $33.00 $36,300 NNN - Minimum of $5.00 psf
1341-G Trini's Health Foods 900 0.8% 7/1/1999 7/31/2021 $17.97 $16,170 NNN - Plus 15% Admin
1341-H Cigarettes For Less 900 0.8% 1/1/2005 12/31/2019 $27.72 $24,952 1*5 NNN - Plus 15% Admin
1341-J Teriyaki House 1,725 1.6% 8/31/2000 6/30/2020 $18.09 $31,200 Option 4% annual 1*3 None
Total In-Line Occupied 21,304 19.3% $20.75 $442,029
Vacant Premises
1337-B Anchor/Available 38,234 34.6% $0.00 $0
1321-B Available 9,000 8.1% $0.00 $0
1321-A Available 8,500 7.7% $0.00 $0
1329-A Available 1,050 0.9% $0.00 $0
1341-I Available 975 0.9% $0.00 $0
Total Vacant 57,759 52.3% $0.00 $0
Total Occupied Space 52,776 47.7% $12.25 $646,597
Total Vacant Space 57,759 52.3% $0
Total Property 110,535 100.0% $12.25 $646,597
EXECUTIVE SUMMARY | PROPERTY OVERVIEW | LOCATION & ECONOMIC OVERVIEW | FINANCIAL INFORMATION 27CONFIDENTIAL OFFERING MEMORANDUM
For additional information please contact:
Arthur Milston Disclaimer: Information included or referred to herein is furnished by
Senior Managing Director third parties and is not guaranteed as to its accuracy or completeness.
NAI Global You understand that all information included or referred to herein is
212-705-5148 confidential and furnished solely for the purpose of your review in
amilston@naiglobal.com connection with a potential purchase of the subject loan(s) or REO
property(ies), as applicable. Independent estimates of pro forma income
Xavier Santana and expenses should be developed by you before any decision is made
CEO & Broker on whether to make any purchase. Summaries of any documents are
NAI Pence not intended to be comprehensive or all-inclusive, but rather only outline
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some of the provisions contained therein and are qualified in their
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entirety by the actual documents to which they relate. The asset
owner(s), their servicers, representatives and/or brokers, including but
not limited to NAI Global, C-III Asset Management LLC, and their
respective agents, representatives, affiliates and employees, (i) make no
representations or warranties of any kind, express or implied, as to any
information or projections relating to the subject asset(s), and hereby
disclaim any and all such warranties or representations, and (ii) shall
have no liability whatsoever arising from any errors, omissions or
discrepancies in the information. Any solicitation for offers to purchase
the subject asset(s) is subject to prior placement and withdrawal,
cancellation or modification without notice.You can also read
