Mi Pueblo Food Center - 330 Bellam Boulevard San Rafael, CA 94901 Offering Memorandum - The Ida Group
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Offering Memorandum Mi Pueblo Food Center 330 Bellam Boulevard San Rafael, CA 94901
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party
receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap.
This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary
level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus &
Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property,
the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of
contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon,
or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property.
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not
verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters
and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must
take appropriate measures to verify all of the information set forth herein.
NON-ENDORSEMENT NOTICE
Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee
identified in this marketing package. 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included
for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR
MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
exclusivelylisted
Exclusively listed by: Investment Sales:
Vincent F. Schwab Jeffrey Ida
Senior Vice President Investments National Retail Group
SAN FRANCISCO SAN FRANCISCO
Tel: (415) 625-2171 Tel: (415) 625-2196
Cel: (415) 828-4372 Cel: (415) 828-7679
Fax: (415) 989-9220 Fax: (844) 828-7679
vince.schwab@marcusmillichap.com jeffrey.ida@marcusmillichap.com
License: CA 00840133 License: CA 01826381
OFFICES NATIONWIDE
www.marcusmillichap.com
summary
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY Mi Pueblo Food Center
Offering Highlights
EXECUTIVE
SUMMARY
Mi Pueblo Food Center
330 Bellam Boulevard
San Rafael, CA 94901
Offering Summary
Price $12,500,000
DESCRIPTION
PROPERTY
Down Payment 40% / $4,976,668
*Loan to be Assumed (12/2017) $7,523,332
December 2017 Rent - CAP Rate 7.5%
December 2018 Rent - CAP Rate 7.62%
Leased % 100%
Rentable Square Feet (SF) 35,931 SF
$347.89/SF
FINANCIAL
Price/Rentable Square Feet
ANALYSIS
Lot Square Feet (SF) 172,498 SF
Year Built/Year Renovated 1979/2009
**Parking Spaces 182
**Parking Ratio 5.06 : 1,000 SF The Kitchen at Mi Pueblo Dining Area
Major Tenant Marin County Major Employers Demographics
DEMOGRAPHICS
TENANT SF LEASE EXP LEASE TYPE MAJOR EMPLOYERS SERVICE 1-MILE 3-MILES 5-MILES
Mi Pueblo Food Center 35,931 12/31/2024 NNN Autodesk Inc Computer Software 2013 Population 14,871 69,212 135,974
Lucas Film Visual Effects & Sound 2018 Population 15,063 70,254 138,453
RENT MONTHLY ANNUAL Kaiser Permanente Medical 2013 Households 4,214 25,991 54,122
December 2017 Rent Increase $77,970.27 $935,643.24 Marin General Hospital Medical 2018 Households 4,283 26,505 55,217
December 2018 Rent Increase $79,407.51 $952,890.12
Sutter Health Medical Median HH Income $49,163 $77,790 $86,300
See Financial Section for All Annual Rent Increases
College of Marin Education Per Capita HH Income $27,473 $49,704 $56,400
*Promissory Note Available Upon Execution of the Confidentiality Agreement
**Easement Agreement Available Upon Request
Marin Health & Human Medical Average HH Income $95,646 $127,790 $139,105
**Parking Includes: Regular, Handicap and Loading Spaces
Services (Adj to Subject)
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 2
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0020079
EXECUTIVE SUMMARY Mi Pueblo Food Center
Investment Overview
EXECUTIVE
SUMMARY
Marcus & Millichap has been selected to exclusively market for sale
the Mi Pueblo Food Center, a freestanding 35,931 - square-foot single
tenant NNN leased grocery store that was renovated for the tenant in
2009. This high quality single tenant grocery store is located in San
Rafael, California, seventeen miles north of San Francisco. The asset
provides an opportunity for an investor to procure a long-term NNN
leased single tenant corporate guaranteed asset with annual rent
increases. Conveniently located directly south of a densely populated
DESCRIPTION
PROPERTY
Multi-Family neighborhood and the two major freeways in and out of
San Rafael, the Mi Pueblo Food Center is the premiere grocer in the area.
Mi Pueblo Food Center and Cardenas Markets are owned by New
York based KKR Global Investments and Chicago based Victory Park
Capital. KKR Global Investments purchase (Q42016) into Mi Pueblo
and Cardenas provides additional capital for numerous upgrades and
store remodels to existing locations and allows Cardenas to expand
into communities that are currently under served. The company is
committed to expanding it’s presence on the West Coast with plans to
FINANCIAL
ANALYSIS
open 7 new Cardenas“model”stores each year and the 2017 acquisition
of Los Altos Ranch Markets (7 stores) in the Phoenix area. There are plans
to remodel 7 stores a year, starting with Santa Rosa, San Jose, Salinas and
The Kitchen at Mi Pueblo
Modesto in 2018. There are currently 53 stores throughout California,
Nevada and Arizona employing approximately 3,000 individuals.
Since 2009, Mi Pueblo has been open in San Rafael and serving the Investment Highlights
immediate and regional population from Petaluma to the Golden
DEMOGRAPHICS
Gate Bridge. The property’s irreplaceable location is a block and a half 7 Years Remaining on a Corporate Guaranteed Single Tenant Lease
from Interstate 580, which directly connects Marin County with the Annual Rent Increases
East Bay and Highway 101, the major North/South corridor allowing Renovated for the Tenant in 2009
easy access throughout Marin. The subject property provides fifteen
parking spaces (through a “parking” easement agreement) to the Marin Excellent Strategic San Rafael Location, One and a Half Blocks from I-580
Health and Wellness Campus. This extremely busy 6 building 82,000+ 30,000+ Average Daily Traffic Count (I-580 Offramps and Bellam Blvd)
square-foot campus is home to the Department of Health and Human Located South of a Densely Populated Multi-Family Neighborhood
Services (HHS) and Marin Community Clinics. The HHS provides a wide Shares Parking with the Marin Health and Wellness Campus, a Six Building
range of social, mental, and community support services for families,
82,000+ Sq. Ft. Social, Mental, Medical, and Community Support Facility
children, older adults and individuals with disabilities; while the Marin
Community Clinics provides primary care, specialty and referral health Subject Property is a Highly Desired 35,000 Sq.Ft. Freestanding Retail
services to more than 32,000 insured and uninsured patients annually. Property with Abundant Parking
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 3
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0020079
EXECUTIVE SUMMARY Mi Pueblo
Mi Pueblo Food
Food Center
Center
Regional Map
EXECUTIVE
SUMMARY
DESCRIPTION
PROPERTY
FINANCIAL
ANALYSIS
Mi Pueblo Food Center
DEMOGRAPHICS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 4
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0020079
EXECUTIVE SUMMARY Mi Pueblo Food Center
Summary of Terms
EXECUTIVE
SUMMARY
Interest Offered
Fee simple interest in the Mi Pueblo Food Center, a freestanding 35,931 - rentable square-foot single tenant property located at 330 Bellam Boulevard, San
Rafael, CA 94901.
Terms of the Sale
DESCRIPTION
The Mi Pueblo Food Center is offered at $12,500,000 based on a December 2017 capitalization rate of 7.5%. The net operating income figures for the Property
PROPERTY
assume a fiscal year starting at Year One. Historic operating documentation and additional due diligence items are available upon request.
Property Tours
Prospective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with the Marcus
& Millichap listing agents. (Please do not walk the property, contact the tenant or management without prior approval).
FINANCIAL
ANALYSIS
Financing
NON-RECOURSE FINANCING
Existing Must be Assumed
Loan Amount December, 2017 $7,523,332
Loan-to-Sales Price Ratio 60%
DEMOGRAPHICS
Interest Rate 4.65%
Maturity Date 5/1/2022
Amortization Period 30 Years
Annual Debt Service Payment $513,574
The property has CMBS financing that must be assumed. The loan commenced on July 1st, 2012 and is due May 1st, 2022. The original principal amount was
$8,300,000 with a rate of 4.65% and a 30 year amortization, calling for a monthly payment of $42,797.86. 1% assumption fee, processing fees and reserves may
apply. Please contact the Listing Agents for the Promissory Note and Amortization Schedule.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 5
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0020079description
PROPERTY DESCRIPTIONPROPERTY DESCRIPTION Mi Pueblo Food Center
Property Details
EXECUTIVE
SUMMARY
THE OFFERING CONSTRUCTION
Property Mi Pueblo Food Center Foundation Concrete
Property Address 330 Bellam Boulevard, San Rafael, CA 94901 Framing Concrete Tilt
Exterior Concrete
SITE DESCRIPTION Roof Flat
Rentable Square Feet 35,931 SF
Lot Size (SF) 172,498 SF MECHANICAL
DESCRIPTION
PROPERTY
Year Built/Year Renovated 1979/2009 HVAC 5 Package Units
**Parking Spaces 182 Fire Protection Fully Sprinklered and Monitored
**Parking Ratio 5.06 : 1,000 SF Utilities Common Meter
Ownership Fee Simple
**Easement Agreement Available Upon Request UTILITIES
**Parking Includes: Regular, Handicap and Loading Spaces Gas Tenant
Electric Tenant
PARCEL Water Tenant
FINANCIAL
ANALYSIS
The property consists of one tax parcel. Sewer Tenant
APN 009-280-06 Trash Tenant
DEMOGRAPHICS
Bakery Department Customer Service and High End Liquor Department
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 7
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0020079PROPERTY DESCRIPTION Mi Pueblo Food Center
Parcel Map
EXECUTIVE
SUMMARY
DESCRIPTION
PROPERTY
FINANCIAL
ANALYSIS
DEMOGRAPHICS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 8
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0020079PROPERTY DESCRIPTION Mi Pueblo Food Center
ALTA
EXECUTIVE
SUMMARY
DESCRIPTION
PROPERTY
FINANCIAL
ANALYSIS
DEMOGRAPHICS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 9
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0020079analysis F I N A N C I A L A N A LY S I S
Mi Pueblo Food Center Price/SF $347.89
December 22nd, 202
December 22nd, 202
F ISAN
N A NRAFAEL,
C I A L A NCA
A LY S I S
CAP Rate PRICING AND FINANCIAL
Mi PuebloANALYSIS
7.49%
Food
FirstCenter
- 5 Year Option
Year Built /Renovated 1979/2009 Second - 5 Year Opti
Financial
FINANCIAL Overview
OVERVIEW Lot Size 172,498 SF Third - 5 Year Option
Type of Ownership Fee Simple Base Rent ($26.04/S
EXECUTIVE
SUMMARY
Location Net Operating Incom
Annualized Operating Data
Debt Service
330 Bellam Boulevard Rent Increases Annual Rent Monthly Rent
Net Cash Flow After D
San Rafael, CA 94901 Tenant Summary
December 22nd, 2017 $935,643.24 $77,970.27
Loan Amount to be
Tenant Trade Name Mi Pueblo Food Center
December 22nd, 2018 $952,890.12 $79,407.51
Price $12,500,000 Ownership
December 22nd, 2019 $974,448.72 Private
$81,204.06
Down Payment 40% / $4,976,668 December 22nd, 2020
Tenant $991,695.60 $82,641.30
Private Company
December 22nd, 2021 $1,013,254.20 $84,437.85
DESCRIPTION
Rentable Square Feet 35,931 Lease Guarantor Corporate Guarantee
PROPERTY
December 22nd, 2022 $1,030,501.08 $85,875.09
Price/SF $347.89 Lease Type Triple Net (NNN)
December 22nd, 2023 $1,052,059.68 $87,671.64
CAP Rate 7.49% Roof and Structure Landlord Responsible
First - 5 Year Option $1,155,540.96 $96,295.08
Year Built /Renovated 1979/2009 Second Lease Term
- 5 Year Option $1,271,957.40 15 Years
$105,996.45
Lot Size 172,498 SF Third - 5Lease
Year Option
Commencement Date $1,401,309.00 $116,775.75
3/5/2009
Type of Ownership Fee Simple Base Rent ($26.04/SF)
Rent Commencement Date $935,643
12/22/2009
Net Operating Income $935,643
FINANCIAL
Lease Expiration Date 12/31/2024
ANALYSIS
Debt Service $513,574
Term Remaining on Lease 7
Net Cash Flow After Debt Service 8.48% / $422,069
Tenant Summary
Increases Annual
Tenant Trade Name Mi Pueblo Food Center
Loan Amount to be Assumed $7,523,332 as of Dec 2017
Options Three - 5 Year
Ownership Private
Tenant Private Company
DEMOGRAPHICS
Lease Guarantor Corporate Guarantee Financing
Lease Type Triple Net (NNN) FIRST TRUST DEED
Roof and Structure Landlord Responsible Loan Amount $7,523,332
Loan Type Assumption
Lease Term 15 Years
Interest Rate 4.65%
Lease Commencement Date 3/5/2009
Amortization 30 Years
Rent Commencement Date 12/22/2009
Lease Expiration Date 12/31/2024
Term Remaining on Lease 7 Loan information is time sensitive and subject to change.
Increases Annual Contact your local Marcus & Millichap Capital Corporation
representative.
Options Three - 5 Year
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 12
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0020079F I N A N C I A L A N A LY S I S Mi Pueblo Food Center
Tenant and Lease Summary
EXECUTIVE
SUMMARY
Mi Pueblo Food Center
Mi Pueblo Food Center and Cardenas Markets are owned by New York based KKR Rent Commencement 12/22/2009
Global Investments and Chicago based Victory Park Capital. KKR Global Investments
Lease Expiration 12/31/2024
purchase (Q42016) into Mi Pueblo and Cardenas provides additional capital for
Rentable Square Feet (SF) 35,931 SF
numerous upgrades and store remodels to existing locations and allows Cardenas to
DESCRIPTION
Original Term 15 Years
expand into communities that are currently under served. The company is committed
PROPERTY
to expanding it’s presence on the West Coast with plans to open 7 new Cardenas Option Terms Three - 5 Year Options
“model” stores each year and the 2017 acquisition of Los Altos Ranch Markets (7 stores) Pro Rata Share of Project 100%
in the Phoenix area. There are plans to remodel 7 stores a year, starting with Santa Headquarters Ontario, CA.
Rosa, San Jose, Salinas and Modesto in 2018. There are currently 53 stores throughout No. of Locations 53
California, Nevada and Arizona employing approximately 3,000 individuals. Website www.mipueblo.com
Public or Private Private
Lease Abstract
FINANCIAL
ANALYSIS
Legal Tenant Mi Pueblo Newco, LLC a Delaware LLC
Effective Date: 3/5/2009
Expiration Date: 12/31/2024
Early Termination: None
Options: Three - 5 Year Options
First - 5 Year Option: $96,295.08/Month; $1,155,540.96/Year
Second - 5 Year Option: $105,996.45/Month; $1,271,957.40/Year
DEMOGRAPHICS
Third - 5 Year Option: $116,775.75/Month; $1,401,309.00/Year
Each calendar year, Tenant shall pay annual percentage rent equal to 1.5% of all Gross Sales resulting from business conducted in,
Percentage Rent:
on, or from the Premises during such calendar year in excess of $872/rsf (Break Point-$31,331,832)
Common Area
Tenant
Maintenance:
Insurance: Tenant
Taxes: Tenant
Base Building Components Landlord
Roof Membrane Tenant
Roof Structure Landlord
Exclusive Use: Yes
Co-Tenancy: None
Other: N/A
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 13
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0020079demographics
DEMOGRAPHICSCO M P E T I T I V E P R O P E R T Y S E T Mi Pueblo Food Center
Demographic Summary
Geography: 5 Miles
EXECUTIVE
SUMMARY
Population Race and Ethnicity
In 2013, the population in the area was 135,974. The population has The current year racial makeup of the area is as follows: 77.70% White,
changed by 4.57% since 2000. It is estimated that the population in the 3.06% African American, 0.80% Native American and 5.90% Asian/
area will be 138,453 five years from now, which represents a change of Pacific Islander. Compare these to U.S. averages which are: 72.20%
1.82% from the current year. The current population is 49.9% male and White, 12.65% African American, 0.96% Native American and 5.01%
DESCRIPTION
50.0% female. The median age of the population in the area is 43.9, Asian/Pacific Islander.
PROPERTY
compare this to the U.S. average which is 37. The population density
in the area is 2,677.19 people per square mile. People of Hispanic origin are counted independently of race. People
of Hispanic origin make up 17.96% of the current year population in
Households the area. Compare this to the U.S. average of 16.55%.
There are currently 54,122 households in the area. The number of
households has changed by 4.58% since 2000. It is estimated that Employment
the number of households in the area will be 55,217 five years from In 2013, there are 78,083 employees in the selected area, this is also
FINANCIAL
now, which represents a change of 2.02% from the current year. The known as the daytime population. The 2000 Census revealed that
ANALYSIS
average household size in the area is 2.37 persons. 77.5% of employees are employed in white-collar occupations in this
geography, and 22.4% are employed in blue-collar occupations. In
Income 2013, unemployment in the area is 3.46%.
In 2013, the median household income in the area is $86,300, compare
this to the U.S. average which is currently $53,535. The median
household income in the area has changed by 21.84% since 2000. It
DEMOGRAPHICS
is estimated that the median household income in the area will be
$103,859 five years from now, which represents a change of 20.34%
from the current year.
The current year per capita income in the area is $56,400, compare
this to the U.S. average, which is $28,888. The current year average
household income in the area is $139,105, compare this to the U.S.
average which is $75,373.
Demographic data © 2012 by Experian
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future 16
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0020079exclusivelylisted Exclusively listed by: Investment Sales: OFFICES NATIONWIDE www.marcusmillichap.com
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