DR BOYD'S VETERINARY RESORT - 2147 SAN DIEGO AVE | SAN DIEGO, CA 5.5 YEARS TERM REMAINING - 2147 San Diego Ave ...
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™
DR BOYD’S VETERINARY RESORT
2147 SAN DIEGO AVE | SAN DIEGO, CA
$4,052,133 6.00% ±5.5 YEARS
PRICE CAP RATE TERM REMAINING
1|
OFFERING MEMORANDUM
CONTENTS
03 EXECUTIVE OVERVIEW
08 FINANCIAL OVERVIEW
10 TENANT OVERVIEW
12 AREA OVERVIEW
LISTED BY:
ANDREW EVANS
Senior Associate
D: (949) 662-2256
M: (925) 360-0277
E: andrew.evans@matthews.com
License No. 02055475 (CA)
RAHUL CHHAJED
VP & Senior Director
D: (949) 432-4513
M: (818) 434-1106
E: rahul.chhajed@matthews.com
License No. 01986299 (CA)
MICHAEL MORENO
VP & Senior Director
D: (949) 432-4511
M: (818) 522-4497
E: michael.moreno@matthews.com
License No. 01982943 (CA)
KYLE MATTHEWS
Broker of Record
License No. 67120 (GA)
™
PROPERTY HIGHLIGHTS
EXECUTIVE SECTION
OVERVIEW 01 • E-Commerce & Recession-Resistant Property – Veterinary properties are extremely sought-after investments for their resistance
to downturns in the economy and e-commerce trends that affect traditional retail properties
• Practice Acquired by Large Veterinary Operator – Pathway Vet Alliance acquired the practice in 2018 because of the site’s strong,
successful performance
• Very Passive Lease Structure – This investment offers investors a potential investor a very passive “hands-off” investment for both
local and national investors
LIST PRICE • Inflation-Protected Lease Structure – Lease Features 3% Annual Increases throughout the term which provides a great hedge
against inflation
$4,052,133
• Tenant’s Commitment to Location – Pathway Vet Alliance recently picked up a five-year option period early, demonstrating the
tenant’s long-term commitment to the location
• 24/7 Emergency Hospital & Resort – This is a state-of-the-art, 24-Hour Veterinary Emergency Hospital & Resort giving their clients
Overnight, Holiday, and Weekend Emergency Pet Care
TOTAL NOI
$243,128
LOCATION HIGHLIGHTS
• Extremely Dense, San Diego County Real Estate – The asset caters to over 454,333 residents within a 5-mile radius
• Above Average Income Levels – Average household income within the immediate 1-mile radius exceeds $132,000
• Easy Access to Surrounding Markets – Dr.. Boyd’s Veterinary Resort is strategically located just off of I-5 which is a main interstate
highway that runs throughout Southern CA and sees over 203,000 VPD
CAP RATE
• Strong Visibility, Ideal Location – This asset is easily accessible due to being located just off of I-5, and is visible from the main
6.00% interstate highway, making this an ideal, irreplaceable location in San Diego
TENANT HIGHLIGHTS
• Pathway Vet Alliance – Pathway Vet Alliance is a premier veterinary operator in the space, that operates over 390 vet hospitals
GROSS LEASABLE AREA across the country. Pathway is backed by TSG Consumer Partners ($9B AUM), which provides significant capital to expedite their
expansion across the country
± 8,100 SF
• Expanding Operations – Pathway Vet Alliance expands by acquiring existing veterinary practices that are already successful and
established within the community. This allows them to quickly grow their footprint across new markets
• Booming Industry – The global veterinary services market size is expected to reach $142 Billion by 2025, with a CAGR of 5.6%
during that period. Consumers spent over $95 Billion on their pets in 2019 and that number is expected to grow to $99 Billion in
2020
LEASE TERM REMAINING
± 5.5 YRS 3|
4
PA C I F I C H W Y
± 23,500 VPD
I NTE R STATE
5
SUBJECT ± 203,000 VPD
PROPERTY
5|
LOMA SQUARE SPORTS ARENA
SH O PPI N G CENT ER
SHOP P ING CENTER
1 MI POPULATION: 12,759
1 MI HH INCOME: $131,943
MIDWAY DISTRICT
PA C I F I C H W Y
± 23,500 VPD
INTERSTATE
5
SUBJECT
± 203,000 VPD
PROPERTY
6
± 2 M I L E S AWAY
PA C I F I C H W Y
± 23,500 VPD
I N T ERSTAT E
5
± 203,000 VPD
SUBJECT
PROPERTY
7
FINANCIAL SECTION OVERVIEW 02 | 8
INVESTMENT SUMMARY ANNUALIZED OPERATING DATA
List Price $4,052,136
NOI $243,128 LEASE YEARS MONTHLY RENT ANNUAL RENT CAP RATE
CAP Rate 6.00%
7/1/2020 - 6/30/2021 $20,260.68 $243,128.16 6.00%
Price/SF $500.26
GLA 8,100 7/1/2021 - 6/30/2022 $20,868.50 $250,422.00 6.18%
Year Built 1965/R2014
7/1/2022 - 6/30/2023 $21,494.56 $257,934.66 6.37%
Landscaping Professional
Topography Generally Level 7/1/2023 - 6/30/2024 $22,139.39 $265,672.70 6.56%
7/1/2024 - 6/30/2025 $22,803.57 $273,642.89 6.75%
7/1/2025 - 6/30/2026 $23,487.68 $281,852.17 6.96%
TENANT SUMMARY
Tenant Name Pathway Vet Alliance
Type of Ownership Fee Simple
Lease Type NNN (Roof & Structure) Please contact a Matthews™ Capital
Markets Agent for f inancing options:
Original Lease Term 10 Years
Lease Commencement Date 7/1/20
Kevin Puder
Lease Expiration Date 6/30/26 (562) 841-1789
kevin.puder@barringtoncapcorp.com
Term Remaining 5.5 Years
Increases 3% Annual
Options Three (3), Five (5) Year Options
9|
TENANT SECTION OVERVIEW 03 | 10
PATHWAY VET ALLIANCE
Founded in 2003 and headquartered in Austin, Texas, Pathway Vet Alliance has grown from a single veterinary practice
to nearly 200 locations across the U.S. Pathway’s mission is for its team members to be change agents for good, who
support people doing what they love so, together, they can transform the veterinary industry and the world – for the
better. Pathway has differentiated itself by focusing on the unique needs of each practice and partnering with the local
team to implement their vision and work with their values. In 2018, Pathway acquired 55 new veterinary practices and
grew by nearly 40 percent. In August 2018, Pathway was ranked No. 1,094 on Inc. magazine’s 37th annual Inc. 5000,
WEBSITE
a ranking of the nation’s fastest-growing private companies, and later in the year was recognized as the third fastest-
WWW.PATHWAYVETS.COM growing private company in Austin with revenues in excess of $10 million.
In August 2016, Pathway Partners Vet Holding LLC announced today that it has received an investment from funds
LOCATIONS
managed by Morgan Stanley Global Private Equity. Founded by Dr. Jasen Trautwein and led by CEO Shawn McVey,
±390 LOCATIONS
Pathway is a leading veterinary hospital owner and operator. Pathway is partnering with MSPE to prepare for rapid
expansion. Simultaneous with the MSPE transaction, the Company acquired multiple additional clinics through
partnerships with leading veterinary practices and chains in the Northeast, the Mid-Atlantic region, and Southern
HEADQUARTERS
California. The transaction has substantially increased the size and geographic footprint of the Company, with 35
AUSTIN, TX
clinics in 9 states across the country.
11 |AREA SECTION
SECTION
OVERVIEW 0044
| 12SAN DIEGO, CALIFORNIA
ESTABLISHED COORDINATES TIME ZONE
July 16, 1769 32°42′54″N UTC−8 (Pacific)
117°09′45″W
With its great weather, miles of sandy beaches, and major
attractions, San Diego is known worldwide as one of the best
tourist destinations and a great place for residents to relax year
round. California’s second largest city and the United States’ eighth
largest, San Diego boasts a citywide population of nearly 1.37 million
residents and more than 3 million residents countywide. Within its
borders of 4,200 sq. miles, San Diego County encompasses 18
incorporated cities and numerous other charming neighborhoods
and communities, including downtown’s historic Gaslamp Quarter,
Little Italy, Coronado, La Jolla, Del Mar, and Carlsbad, just to name
a few.
1.37 Million $98,210 3.5%
2020 ESTIMATED 2020 ESTIMATED EMPLOYMENT
POPULATION HOUSEHOLD INCOME GROWTH
13 |P O P U LAT IO N H O USE H O L D I N CO ME
2020 2025 202O 2025 2020
ESTIMATE PROJECTION ESTIMATE PROJECTION ESTIMATE
1-MILE 12,759 12,941 4,240 4,310 $131,943
3-MILE 161,134 165,496 74,476 76,501 $103,053
5-MILE 454,333 465,407 198,035 202,738 $98,326
*SUBJECT PROPERTY DEMOGRAPHICS
| 14ECONOMY
With its warm, year-round climate, 50 miles of sun-soaked coastline, and world-famous attractions, San Diego is a top tourist destination. But this Southern California metropolis with a laid-
back vibe is also home to cutting-edge businesses in life sciences, genomics, biotechnology, telecommunications, Smart City technology, software, electronics, and other major innovative
industries. Additionally, San Diego is one of the most pet-friendly cities in the country, ranking third on the list of 100 metropolitan areas around the country.
Here’s why San Diego is a great place to live and work:
• San Diego excelled when it came to pet businesses per capita (1st), dog-friendly restaurants (1st), and animal shelters per capita (2nd)
• Rated No. 4 among Top Life Science and Biosciences locations (Jones Lang LaSalle 2015)
• 14 advanced industries produce $42.1 billion and pay $116,600/year on average (Brookings Institution)
• Rated No. 1 in concentration of military/defense assets in the world (San Diego Military Advisory Council)
• Rated No. 2 as the Most Inventive City in the World (Forbes 2013)
• Global connections with direct flights to Tokyo, London, and Shanghai
• No. 1 most-patented Sports and Active lifestyle sector with 1,200-plus companies in the region (San Diego Regional EDC)
• Home to University of California San Diego (UCSD), ranked No. 3 public universities in the United States, No. 17 in the world (World University Rankings 2016)
• Ranked No. 1 for lowest average commute times among peer cities (Talent, Where San Diego Stands, 2016)
• Selected as one -- and the only North American -- city named among National Geographic’s “World Smart Cities” (2015)
• Called “Best Place to Launch a Startup” (Forbes 2014)
• Had record-breaking 2016, attracting 34.9 million visitors who spent an all-time-high $10.4 billion and supported a tourism sector of 183,000 jobs (San Diego Tourism Authority 2016)
• 80-plus educational and research institutes in the region
9%
The vitality of San Diego’s economy is reliant upon the strength of
the region’s four economic drivers - innovation, military, tourism, and
13%
INNOVATION local. San Diego is one of the top 10 visitor and meeting destinations
in the U.S., with a growing sector focused on arts and culture. More
TOURISM
than 35 million people visit San Diego each year. Many of San Diego’s
11% DEFENSE business leaders first visited the region as a tourist or convention
LOCAL delegate. Tourism, a key driver behind the region’s local economy,
67%
accounted for 13 percent of the region’s total jobs.
15 |BALBOA PARK LA JOLLA DOWNTOWN
SAN DIEGO COUNTY
San Diego County, officially the County of San Diego, entertainment options throughout the region, San economies. Tourism employs more than 199,800
is a county in the southwestern corner of the state of Diego is positioned as one of the top visitor and people in a variety of positions including lodging,
California. As of 2020 the population was 3,370,232 convention destinations in the world. Dubbed by food service, attractions, and transportation.
making it California’s second-most populous county Fodor’s as a “vacationer’s paradise” and by the U.S.
There are also 16 naval and military installations of
and the fifth-most populous in the United States. Its Weather Bureau as “the closest thing to perfect
the U.S. Navy, U.S. Marine Corps, and the U.S. Coast
county seat is San Diego, the eighth-most populous weather in America,” San Diego’s world-class
Guard in San Diego County. These include the Naval
city in the United States. It is the southwestern most waterfront and award-winning international airport
Base San Diego, Marine Corps Base Camp Pendleton,
county in the 48 contiguous United States and is a make it accessible from destinations across the globe.
Marine Corps Air Station Miramar, and Naval Air
border county. Station North Island.
Critical to the region, San Diego’s tourism economy
With more than 70 miles of coastline, state of the is one of San Diego’s three core traded economies,
art hotel and convention spaces, and an array of along with the region’s innovation and military
| 16 *SUBJECT PROPERTY DEMOGRAPHICSN
S
4 23 ATTRACTIONS
12
Key Attractions And Events
10 1• Balboa Park
2• Del Mar Racetrack & Fairgrounds
3• Hotel del Coronado
4• LEGOLAND California Resort
5• Old Town San Diego State Historic Park
6• Gaslamp Quarter
7• Petco Park
8• Port of San Diego
9• San Diego Convention Center
•
10 San Diego Zoo and Safari Park
2 11• SeaWorld San Diego
12• Stone Brewing World Bistro and Gardens
13• USS Midway
Shopping
•
14 Horton Plaza
19 15• Westfield UTC
16• Seaport Village
21 17• Westfield Mission Valley
15
•
18 Fashion Valley Mall
Golf Courses
19• Torrey Pines Golf Course
•
20 Balboa Park Golf Course
Universities
21• University of California, San Diego
•
22 San Diego State University
SUBJECT •
23 California State University, San Marcos
PROPERTY
•
24 University of San Diego (USD)
•
25 Point Loma Nazarene University (PLNU)
17 |TORREY PINES GOLF COURSE PETCO PARK
DEL MAR RACETRACK SAN DIEGO CONVENTION CENTER
| 18CONFIDENTIALITY AGREEMENT & DISCLAIMER
This Offering Memorandum contains select information pertaining to the business and affairs of Dr. Boyd’s Veterinary Resort located at 2147 San Diego Ave, San Diego, CA
92110 (“Property”). The 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 Seller or Matthews Real Estate Investment Services. The material and information
in the Offering Memorandum is unverified. Matthews Real Estate Investment Services has not made any investigation, and makes no warranty or representation, with
respect to square footage, income and expenses, the future financial performance of the property, future rent, and real estate value market conditions, the condition
or financial prospects of any tenant, or the tenants’ plans or intentions to continue to occupy space at the property. All prospective purchasers should conduct their
own thorough due diligence investigation of each of these areas with the assistance of their accounting, construction, and legal professionals, and seek expert
opinions regarding volatile market conditions given the unpredictable changes resulting from the continuing COVID-19 pandemic. The information is based in part
upon information supplied by the Owner and in part upon financial information obtained from sources the Owner deems reliable. Owner, nor their officers, employees,
or real estate agents make any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum, or any of its content,
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.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. 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 Seller.
Matthews Real Estate Investment Services is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee in the Offering Memorandum. 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 Matthews Real
Estate Investment Services.
Owner and Matthews Real Estate Investment Services 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 Property 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 Seller or Matthews Real Estate Investment Services 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.
19 |DR BOYD’S VETERINARY RESORT
2147 SAN DIEGO AVE | SAN DIEGO, CA
LISTED BY:
ANDREW EVANS RAHUL CHHAJED MICHAEL MORENO
Senior Associate VP & Senior Director VP & Senior Director
D: (949) 662-2256 D: (949) 432-4513 D: (949) 432-4511
M: (925) 360-0277 M: (818) 434-1106 M: (818) 522-4497
E: andrew.evans@matthews.com E: rahul.chhajed@matthews.com E: michael.moreno@matthews.com
License No. 02055475 (CA) License No. 01986299 (CA) License No. 01982943 (CA)
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