Single-Tenant, Absolute NNN Investment Opportunity - 1095 PULLMAN ST, ANAHEIM, CA
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Single-Tenant, Absolute NNN Investment Opportunity 10 9 5 P U L L M A N S T, A N A H E I M , C A WA L S E T H N E T LE A S E D I N V E S T M E N T S T E A M
TABLE OF CONTENTS 01 Investment Summary Property Overview INVESTMENT SUMMARY Investment Highlights Site Plan Quick Facts Aerials & Maps Property Photos EXCLUSIVELY LISTED BY MICHAEL WALSETH 02 Anaheim Demographics AREA EVP, Shareholder OVERVIEW Orange County 949.400.4261 michael.walseth@kidder.com LIC N° 01405081 K IDDER .COM 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 Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews. 03 Rent Roll Brand Profile 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 AREA due diligence investigation. Kidder Mathews 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 OVERVIEW 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, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews 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. This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.
INVESTMENT SUMMARY INVESTMENT SUMMARY Kidder Mathews is pleased to offer the opportunity to acquire the fee simple interest (land and building ownership) in an absolute NNN, corporate guaranteed, freestanding, Home Depot Superstore investment property located in Anaheim, CA (Orange County MSA). The tenant, Home Depot U.S.A., Inc., has approximately six years 91 from the Anaheim Hills Festival Shopping Center (573,000 SF) remaining on their lease with 10 (5-year options to extend. The lease anchored by Target, Edward Cinemas, and Hobby Lobby, increasing features fixed rental increases averaging 6.30% at the beginning of crossover traffic to the subject property. Other nearby national/ options 1 through 5 and fair market values for options 6 through credit tenants include Costco, Sprouts Farmers Market, Best Buy, T.J. 10. The lease is corporate guaranteed by Home Depot U.S.A., Inc. Maxx, Michaels, Bed Bath & Beyond, Dick’s Sporting Goods, Staples (S&P: A) and is absolute NNN with zero landlord responsibilities. Pavilions, and more, further increasing consumer draw to the trade This superstore is Home Depot’s largest store on the West Coast area and promoting crossover shopping. The site also benefits from and the second largest in the whole nation. its positioning in an extremely dense, growing residential area and is the only Home Depot within an 8-mile radius, providing a direct The Home Depot Superstore is strategically positioned along consumer base to draw from. The 5-mile trade area is supported by an the highly traveled State Route 91 (117,000 VPD), which is just off extremely dense population of over 141,358 residents and more than Yorba Linda Blvd (52,000 BPD), a major thoroughfare connecting 51,163 employees, boasting an affluent average household income numerous suburbs of Orange County. The asset is ideally located of $173,159. in the heart of Savi Ranch’s retail corridor and positioned across SR DEMOGRAPHICS This superstore is Home Depot’s largest 1 Mile 3 Mile 5 Mile store on the West Coast and the second POPULATION 9,677 83,875 141,358 largest in the whole nation. AVG HH INCOME $160,106 $170,925 $173,159 EMPLOYEES 9,660 25,483 51,163 BASED ON 2020 ESTIMATES PHOTO BY HERSON RODRIGUEZ 4 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM 5
PROPERTY OVERVIEW INVESTMENT SUMMARY INVESTMENT SUMMARY OFFERING PRICE $60,677,000 NET OPERATING INCOME $2,427,096 CAP RATE 4.00% GUARANT Y Corporate TENANT The Home Depot, Inc. LEASE T YPE Absolute NNN (Fee Simple) LANDLORD RESPONSIBILITIES None PROPERTY SPECIFICATIONS 225,410 SF (178,660 SF Indoor plus RENTABLE AREA 46,750 SF Enclosed Garden Center) LAND AREA 18.01 AC 1095 Pullman St The 178K+ SF Home Depot PROPERT Y ADDRESS Anaheim, CA 92807 SuperStore in Anaheim is YEAR BUILT 1995/2004 being offered at $60,677,000 PARCEL NUMBER 352-221-01 with a cap rate of 4.00%. OWNERSHIP Fee Simple (Land & Building Ownership) 6 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM 7
INVESTMENT HIGHLIGHTS Corporate Guaranteed, Investment-Grade Tenant Across from Anaheim Hills Festival Shopping INVESTMENT SUMMARY INVESTMENT SUMMARY (S&P: A), Options to Extend Center (573,000 SF), Dense Retail Corridor Home Depot benefits from strong 141K+ 51K+ $173K RESIDENTS IN EMPLOYEES HOUSEHOLD • Home Depot U.S.A. Inc. corporate guaranteed lease • Ideally positioned across SR 91 from the Anaheim Hills Festival demographics in a 5-mile trade area THE AREA IN THE AREA INCOME (AVG) • Tenant has 6 years remaining on their lease with 10 (5-year) Shopping Center (573,000 SF) anchored by Target, Edward options to extend Cinemas, and Hobby Lobby • Investment-grade tenant: S&P: A • Other nearby national/credit tenants include Costco, Sprouts Farmers Market, Best Buy, T.J. Maxx, Michaels, Bed Bath & Beyond, Dick's Sporting Goods, Staples, Pavilions, and more Absolute NNN, Fee Simple Ownership, Zero • Excellent tenant synergy promotes crossover shopping to the Landlord Responsibilities, Second Largest Home subject site Depot in the Country • Tenant pays for CAM, taxes, insurance, and maintains all Excellent Demographics in 5-Mile Trade aspects of the premises Area, One of Orange County's Most Affluent • No landlord responsibilities Communities • Idea, management-free investment for an out-of-state, passive • Over 141,358 residents and 51,163 employees support the investor trade area • This superstore is Home Depot's largest store on the West • $173,159 affluent average household income within a Coast and second largest in the nation 5-mile radius Adjacent to State Route 91 (117,000 VPD), High Rare Orange County Retail Opportunity, Traffic Area, Excellent Visibility, & Access High Barriers to Entry • The Home Depot Superstore is strategically positioned along • Generational opportunity to own commercial real estate the highly traveled State Route 91 with 117,000 vehicles in Anaheim passing daily • Savi Ranch has recently become a major retail hub and • SR 91 serves as a major east/west thoroughfare for Orange destination for Orange County County and the Greater Los Angeles region • Dense, infill trade area with major barriers for • Located just off Yorba Linda Blvd (52,000 VPD), a primary new development REPRESENTATIVE PHOTO thoroughfare connecting numerous suburbs of Orange County 8 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM 9
TRAFFIC COUNT 52,000 CARS/DAY TRAFFIC COUNT 16,400 CARS/DAY E W V AA EI IENXVEECSUTTM INVESTMENT SUMMARY M L AL AI R P LA TR C A A N AN Y A O NT N SA R D Y I VEEN S W PK SANTA ANA RIVER CH TRAFFIC COUNT T USM N 26,000 CARS/DAY RA VI UM A SA MRAYR Y R ST A LD N Y ST M A CR LL E PU TRAFFIC COUNT 117,000 CARS/DAY TRAFFIC COUNT 117,000 CARS/DAY 10 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM 11
QUICK FACTS INVESTMENT SUMMARY INVESTMENT SUMMARY Location Access Traffic Counts Building Area Located in Pullman Street Yorba Linda Boulevard 225,410 SF Orange County 2 access points 52,000 cars per day (178,660 SF indoor plus Anaheim, CA 46,750 SF enclosed East Crystal Boulevard Riverside Freeway/ Garden Center) 3 access points State Highway 91 117,000 cars per day Parking Parcel Year Built Zoning Approximately 923 parking Parcel No. 352-221-01 1995 GC General Commercial spaces on the owned parcel (Renovated 2004) 18.01 AC Parking ratio is approximately 5.16 stalls per 1,000 SF of RSF 12 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM 13
C ATRAFFIC -91 COUNT 117,000CARS/DAY 117,000 CARS/DAY ANAHEIM HILLS FESTIVAL SHOPPING CENTER (573,000 SF) YORBA TRAFFIC LINDA COUNT BLV D 52,000 CARS/DAY 52,000+ CARS/DAY Y W PK H D A B LV D NC Y O R B A LI N I RA S AV PU LLM AN ST CTRAFFIC A -91 COUNT 117,000 CARS/DAY 117,000 CARS/DAY SAV I R A NCH PK W Y L DR 26,000+ CARS/DAY A PU ST LL Y M R AN C E ST R YS TA L D E CR MANASSERO FARMS YORBA LINDA BLV D 52,000+ CARS/DAY
YO R B A LONG BEACH L IN D A B HUNTINGTON BEACH LV D NEWPORT BEACH ORANGE COAST COLLEGE I -TRAFFIC 4 05 COUNT 296,000 CARS/DAY 296,000 CARS/DAY SA VI RA SUBJECT NC PROPERTY H PK THE OUTLETS AT ORANGE W Y JOHN WAYNE AIRPORT DISNEYLAND PARK SANTA ANA IRVINE ANAHEIM FULLERTON I-5 TRAFFIC COUNT 289,000 CARS/DAY PU 289,000 CARS/DAY CALIFORNIA STATE LL CALIFORNIA STATE UNIVERSITY UNIVERSITY, FULLERTON M CTRAFFIC A -91 COUNT OF SAN BERNARDINO ORANGE AN 117,000 CARS/DAY 117,000 CARS/DAY 20,000+ STUDENTS ST THE MARKET PLACE VILLA PARK C A -91 TRAFFIC COUNT 117,000 CARS/DAY 117,000 CARS/DAY SUBJECT K E N DA L L D R PROPERTY YORBA LINDA CTRAFFIC A -91 COUNT 117,000 CARS/DAY 117,000 CARS/DAY DEER CANYON PARK ANAHEIM HILLS FESTIVAL SHOPPING CENTER ANAHEIM HILLS FESTIVAL SHOPPING CENTER
MOORPARK SAN NEIGHBORING HOME DEPOT DISTANCES SIMI VALLEY FERNANDO Crestline Mt Baldy CANOGA LA CAÑADA Ru PARK FLINTRIDGE Sp THOUSAND INVESTMENT SUMMARY BURBANK INVESTMENT SUMMARY OAKS 5 MILES 16.6 MILES 27 SHERMAN PASADENA La Habra, CA CALABASAS OAKS AZUSA LA HABRA 11.2 MILES LOS ANGELES SAN BERNARDINO LAMBERT RD Topanga HOLLYWOOD Brea, CA State Park 48 Min | 36 Miles COVINA FONTANA BREA BEVERLY ONTARIO 3 MILES HILLS BLOOMINGTON LOS ANGELES POMONA REDLANDS KRAEMER BLVD MALIBU CITY OF SANTA VD MONICA INDUSTRY CHINO BL EA BR YORBA LINDA BLVD 1 MILE YORBA INGLEWOOD 10.2 MILES LINDA CHAP MAN A VE Fullerton, CA DOWNEY RIVERSIDE MORENO VALLEY PLACENTIA EL SEGUNDO FULLERTON BREA Chino Hills COMPTON State Park SUBJECT MANHATTAN March Air D L A PA LM A A V E R BEACH Reserve Base N O CORONA WOODCREST CA NY PROPERTY LAKEWOOD FULLERTON S A N TA A N A ANAHEIM HILLS Hermosa STATE COLLEGE BLVD LA PALMA AVE Beach TORRANCE CERRITOS ANAHEIM SUBJECT EL CERRITO MEAD LAK Redondo ANAHEIM Beach PROPERTY VALLEY 8.1 MILES LONG BEACH 17.7 MILES NUEVO ORANGE AN Anaheim, CA Orange, CA 43 Min | 32 Miles ARCILLA PERRIS AH RANCHO LONG BEACH EIM BALL RD TAFT AVE PALOS Terminal VILLA PARK SANTA ANA SILVERADO B LV Island VERDES D HARBOR BLVD STANTON W 9.8 MILES MENIFEE Orange, CA IRVINE Canyon Lake 17.9 MILES KATELLA AVE IRVINE Lake Garden Grove, CA ORANGE Elsinore LAKE 20 Min | 17 Miles LAKELAND FOREST VILLAGE NEWPORT GARDEN GROVE BEACH WESTMINSTER MURRIETA Laguna Beach SANTA ANA LAGUNA NIGUEL 18 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM DANA TEMECU 19 POINT
PROPERTY PHOTOS FINANCIALS REPRESENTATIVE PHOTO 20 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM 21
ANAHEIM teams-the Los Angeles Angels of Anaheim American League Baseball team that utilizes the Angel Stadium of Anaheim, and the Anaheim Ducks National Hockey League team that utilizes the Honda Center. ARE A OVERVIEW ARE A OVERVIEW Anaheim is a city located in the Los Angeles metropolitan area, also known as Orange County. It Anaheim and Orange County are home to serves as the county's cultural and tourist attraction of Orange County, California, United States. a wide spectrum of industries, with 8,000+ manufacturing plants in the county. Anaheim City is located in northwestern Orange County, about 28 miles southeast of downtown Los Angeles and 90 miles north of San Diego. The city lies on a coastal plane, which Anaheim and Orange County are home to a wide spectrum is bordered by the Pacific Ocean to the west and the Santa of industries - more than 8,000 manufacturing plants are Ana Mountains to the east. The city is the oldest and most located in the county, most notably defense and aerospace, populous city in Orange County. The city of Anaheim is the biomedical, electronics, machinery, and computer product 10th largest city in California with a population of 359,477 as manufacturers. The city has over 20,000 active business of July 1, 2018. licenses, of which 15,500 are businesses operating within the Centrally located within Southern California, Anaheim is city’s boundaries. the regional hub for economic activity in Orange County According to the city’s Comprehensive Annual Financial and fast becoming a world-class business center. The city Report, the top employers in the city are Disneyland Resort, is known worldwide as a center for entertainment, tourism, Kaiser Permanente, Kaiser Permanente Anaheim Medical and convention activities. The translates into prestigious, Center, Northgate Gonzalez Markets, Anaheim Regional high profile international address that balances business and Medical Center, AT&T, Hilton Anaheim, L-3 Communications, residential growth. Time Warner Cable, and West Anaheim Medical Center. Anaheim has three private universities: Anaheim University and Southern California Institute of Technology (SCIT), and Anaheim is the regional hub for economic Bristol University (BU) with its sport teams Bristol Bears. activity in Orange County and fast North Orange County Community College District Serves becoming a world-class business center. the community. Cultural, historical, and leisure attractions include the Disneyland Resort, including Disneyland Park and Disney’s Anaheim’s income is based on a tourism economy. In addition California Adventure Park, Anaheim Museum, Featherly to the Walt Disney Company being the city’s largest employer, Regional Park, Ramon Peralta Adobe Historic Site, Yorba Anaheim is home to the Disneyland Resort, the Anaheim DISNEYLAND ANGEL STADIUM Linda Regional Park, and many others in the greater Los Convention Center, and two major league professional sports Angeles metropolitan area. 22 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM 23
DEMOGRAPHICS ARE A OVERVIEW ARE A OVERVIEW The subject property is ideally situated POPULATION 1 Mile 3 Miles 5 Miles in Anaheim which benefits from very 2020 ESTIMATE 9,677 83,875 141,358 strong demographics. 2025 PROJECTION 9,740 84,374 142,361 2010 CENSUS 9,276 81,456 136,655 GROWTH 2020 - 2025 0.1% 0.1% 0.1% GROWTH 2010 - 2020 0.4% 0.3% 0.3% AVERAGE AGE 43.7 42.7 42.8 HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2020 ESTIMATE 3,574 30,088 49,913 2025 PROJECTION 3,699 31,146 51,705 2010 CENSUS 3,335 28,385 46,956 GROWTH 2020 - 2025 0.7% 0.7% 0.7% CHANGE 2000 - 2020 0.8% 0.5% 0.7% 2020 EMPLOYMENT & INCOME 1 Mile 3 Mile 5 Mile AVG HH INCOME $160,106 $170,925 $173,159 MEDIAN HH INCOME $130,501 $133,134 $132,424 PER CAPITA INCOME $59,144 $61,332 $61,162 TOTAL BUSINESSES 1,040 3,586 6,924 TOTAL EMPLOYEES 9,660 25,483 51,163 PHOTO BY GAGE SKIDMORE 24 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM 25
ORANGE COUNTY ARE A OVERVIEW ARE A OVERVIEW BALBOA FERRY | PHOTO BY BRIAN STERLING Orange County is located in the Los Angeles metropolitan area. The county is known for it's tourist attractions, beaches, and perfect climate. Residents enjoy perfect climate in which Orange County is bordered on the southwest by the Pacific parks and beaches provide abundant Ocean, on the north by Los Angeles County, on the northeast by San Bernardino County and Riverside County, and on the opportunities for outdoor activities. southeast by San Diego County. The county is renowned for its business climate and sunny beaches. Residents enjoy a nearly perfect climate in which parks Since 2011, the state has dispensed $52 million in economic and beaches provide abundant opportunities for outdoor development funding to 91 Orange County projects, spurring activities. Orange County is home of exciting professional $459 million in private investment. Sales tax revenue increased sports (Anaheim Ducks and the Los Angeles of Anaheim), HUNTINGTON BEACH PIER by $9.5 million since 2014 and hotel taxes have risen 18 percent a wide range of tourist attractions, and quality venues for over the past three years/ Employment is at an all-time low at visual and performing arts. Orange County boasts a thriving 5%. Since 2015, more than 30 companies have begun projects business economy and a well-educated work force. Orange to build, expand, or relocate in Orange County, generating County has the third largest population in California totaling capital investment of $1.25 billion and creating 1,500 jobs. three million residents. Orange County also has the second highest population by density in California, behind only San Additionally, Orange County companies received $1.14 billion Francisco, with 3.86 thousand people per square mile. The in venture capital investments in 2016 in a variety of industries median household income is $75,400 for the 34 incorporated including high-tech, medical devices, and energy. With its cities in the county. major international ports and airports, Orange County is ranted 10th among U.S. metro areas for total exports. Orange County is known for tourism due to its vast amount of attractions and beaches. Within Orange County are attractions Orange County is home to several acclaimed universities, like Disneyland and Knott’s Berry Farm, which ring more than including University of California, Irvine; California State 20 million guests each year. In addition, Orange County University, Fullerton; Chapman University; Pepperdine contains 40 miles of beautiful coastline from Seal Beach all University; and more. Major employers include Walt Disney the way down to San Clemente, another reason why more Co. (30,000 employees), University of California, Irvine (23,884 than 47 million tourists visit Orange County each year. LAGUNA BEACH SOUTH COAST PLAZA | PHOTO BY STEVEN DAMRON employees), St. Joseph Health (14,000 employees), and Kaiser Permanente (8,178 employees). 26 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM 27
RENT ROLL FINANCIALS FINANCIALS LEASE TERM RENTAL RATES Tenant Building Lease Lease Begin Increase Monthly Price/SF Annually Price/SF Recovery Type Options Name SF Start End The Home 178,660 Mar Jun Current - $202,258 $1.13 $2,427,096 $13.58 Absolute 10 (5-Year) Depot, Inc. 2003 2025 NNN (Corporate (Fee Simple) Guaranty) OPTION 1 $2,600,000/Year OPTION 2 $2,773,824/Year OPTION 3 $2,947,188/Year OPTION 4 $3,120,552/Year OPTION 5 $3,293,916/Year OPTION 6-10 Fair Market Value FOR FINANCING OPTIONS & LOAN QUOTES, PLEASE CONTACT: $60,677,000 $2,427,096 4.00% MICHAEL WALSETH EVP, Shareholder 949.400.4261 NET OPERATING LIST PRICE CAP RATE michael.walseth@kidder.com INCOME LIC N° 01405081 28 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM 29
BRAND PROFILE PUBLIC (NYSE: HD) COMPANY TYPE FINANCIALS FINANCIALS THE HOME DEPOT, INC. PARENT COMPANY $112.1B ANNUAL REVENUE - TRAILING 12 MO'S - Q2 2020 $10.97B NET INCOME - TRAILING 12 MO'S - Q2 2020 The Home Depot is the world’s largest home STOCK PERFORMANCE PAST 5 YEARS | NYSE: HD improvement specialty retailer, with 2,290 $58.7B 300 retail stores in all 50 states, the District of ASSETS - TRAILING 12 MO'S - Q2 2020 Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. 265.17 USD | July 22, 2020 +7.7% REVENUE GROWTH YOY - Q2 2020 250 In the first quarter of 2020, The Home Depot had sales of $28.26 billion and earnings of $2.24 billion. The company +80% ONLINE SALES GROWTH employs more than 400,000 associates. The Home Depot’s 200 stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones Industrial Average and Standard & Poor’s 500 Index. +2,290 NO. OF LOCATIONS Home Depot's stock price has risen 73% between March 150 2020 and July 23, 2020 as a result of very strong Q2 earnings that saw revenue growth of 7.7% YOY to $112.1 billion on a 400,000+ HOMEDEPOT.COM NO. OF EMPLOYEES trailing 12-month basis. 100 2016 2017 2018 2019 2020 REPRESENTATIVE PHOTO 30 OFFERING MEMORANDUM KIDDER MATHEWS KIDDER MATHEWS OFFERING MEMORANDUM 31
EXCLUSIVELY LISTED BY MICHAEL WALSETH EVP, Shareholder 949.400.4261 michael.walseth@kidder.com LIC N° 01405081 5 PA RK PL A Z A , SUITE 1700 | IRV INE , C A 92614 K IDDER .COM
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