TWO TENANT NNN RETAIL CENTER - Attractive Annual Rent Increases 7171 Camino Arroyo, Gilroy, CA 95020 - LoopNet
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TWO TENANT NNN RETAIL CENTER
Attractive Annual Rent Increases
7171 Camino Arroyo, Gilroy, CA 95020
PACHECOPASS
CENTER
INVESTMENT CONTACTS TABLE OF CONTENTS
ERIC CARLTON
Executive Vice President 04 Property Overview
License No. 01809955 Offering Summary
949.724.5561 Investment Highlights
eric.carlton@colliers.com
JEREME SNYDER 08 Property Overview
Executive Vice President Site Plan
License No. 01360233
Tenant Overview
949.724.5552
jereme.snyder@colliers.com
JOHN MACHADO
16 Location Overview
Executive Vice President
Gilroy, CA
License No. 00876747 Retail Market
408.282.3862 Aerial
john.machado@colliers.com Demographics
PACHECOPASS
CENTER
PROPERTY OVERVIEW FINANCIAL SUMMARY LEASE ABSTRACT
We are pleased to offer to qualified investors an opportunity to purchase fee simple, a fully occupied NNN leased multi-tenant retail Tenant Trade Name Wingstop
$3,727,500 $205,917 5.52% Lease Start November 6, 2014
investment occupied by Mattress Firm and Wingstop. Positioned as an outparcel to a Lowe’s and Marshalls anchored center; this
LIST PRICE NET OPERATING CAP RATE
Lease Expiration April 30, 2020
offering provides investors a rare opportunity to acquire a proven retail location with excellent visibility occupied by national tenants INCOME
Lease Term 6 Years
with minimal landlord obligations. Term Remaining 1 Years
INCOME & EXPENSES Base Rent $205,917
Annual Rent $205,917 Rental Adjustments 5/1/2019: $63,730
Expense Reimbursements + Admin Fee $69,443 2 - 5 Year Options
1.75% Annual Increases
Operating Expenses Option Periods Each Option
Taxes $34,241 5/1/2020: $64,848
5/1/2025: $70,722
Insurance $2,099
CAM $33,103 LEASE ABSTRACT
Roof & Structure Landlord
Tenant Trade Name Mattress Firm
Net Operating Income $205,917
Lease Start November 17, 2003
Lease Expiration November 30, 2023
Lease Term 20 Years
Term Remaining 4 Years
Base Rent $205,917
PARCEL DETAILS 2.5% Annual Increases
Rental Adjustments (Next Bump - 12/1/2019:
Parcel 841-18-061
$146,874)
Bulding Size 6,928 SF
Option Periods None
Land Size .70 Acres
PG. 4 | MATTRESS FIRM - WINGSTOP | GILROY, CA MATTRESS FIRM - WINGSTOP | GILROY, CA | PG. 5
GILROY
PREMIUM OUTLETS
INVESTMENT HIGHLIGHTS
• Mattress Firm and Wingstop - 6,928 SF Two Tenant NNN Retail Center
GILROY EAGLE RIDGE
• Mattress Firm - 15 Year Tenancy - Proven Retail Location High School Golf Club SOUTH VALLEY
Middle School
• Wing Stop - Internet Resistant Tenant GLEN VIEW
Elementary School
GILROY
• Outparcel to Lowe’s and Marshalls Anchored Center Prep School
• Adjacent to Traffic Generators: Costco and Walmart Supercenter
• Exceptional Location - Intersection of Hwy 101 & Hwy 152
80,900
(Pacheco Pass Hwy) Vehicles Per Day
101 E. 6TH
• Approximately 110,400 AADT @ Hwy 101 & Hwy 152 S. VALLEY FWY. ST.
• Close Proximity to Silicon Valley (One of the Highest Priced
Housing Markets in the U.S.)
29,500
• Part of a Class “A” Regional Power Center Anchored by Costco, Lowe’s, Vehicles Per Day
23,600
Walmart, Marshalls and More Vehicles Per Day
• Over 53,300 Residents within a 3 Mile Radius Y.
HW
SS O AR ROYO
• Affluent Demographics - AHHI Over $100,200 within a 3 Mile Radius
PA CAMIN
• Rapid Growth - Over 17% Population Growth within a 3 Mile Radius ECO
CH
PA
Z LN
REN
PG. 6 | MATTRESS FIRM - WINGSTOP | GILROY, CA MATTRESS FIRM - WINGSTOP | GILROY, CA | PG. 7
PACHECOPASS
CENTER
NAP
Mathnasium
Sunny Smiles Dentistry
Icicles
Hawaiian BBQ
Danny’s Restaurant
Taqueria
Cancun
CAMINO ARROYO 23,600 VPD
Pho Thanh
An
Le Chic
PD
0V
RE
NZ
,50
. 29
LA
NE
WY
SH
AS
OP
NAP
HEC
NAP
PAC
US HWY 1
01 80,900
PG. 8 | MATTRESS FIRM - WINGSTOP | GILROY, CA VPD MATTRESS FIRM - WINGSTOP | GILROY, CA | PG. 9
PACHECO PASS CENTER DESCRIPTION APN: 841-18-075 PARCEL MAP
±3.94 ACRES
Pacheco Pass I & II is located in the north-east
quadrant of US Highway 101 and Pacheco Pass
LOCATION: Highway (152) on Camino Arroyo and Renz Lane
in Gilroy, California, approximately 30 miles east of
downtown San Jose in Santa Clara County.
850 – 950 Renz Lane and 7011 – 7210 Camino Arroyo
ADDRESS:
Gilroy, CA 95020
PROPERTY SIZE (SF): 194,304 SF
CA
M
APN: 841-18-061
IN
APN: 841-18-
O
ASSESSOR’S PARCEL NUMBER ±0.7 ACRES
059/061/062/070/071/072/075/077/078/079
AR
AND SITE AREA:
RO
27.41 Acres
YO
APN: 841-18-59 APN: 841-18-077
ZONING: C3 (Shopping Center Commercial) ±1.4 ACRES
±3.62 ACRES
The center has approximately 2,203 linear feet of 23,600
Vehicles Per Day
FRONTAGE: frontage along Camino Arroyo Drive and approximately APN: 841-18-078
887 linear feet along Pacheco Pass. ±1.84 ACRES APN: 841-18-079
80,900 APN: 841-18-062 ±7.63 ACRES
Phase I: 2003 & 2004 Vehicles Per Day
YEAR BUILT: ±1.03 ACRES
Phase II: 2004 & 2005
Approximately 23,600 cars daily on Camino Arroyo
S. V
TRAFFIC COUNTS: Drive, 28,500 cars on Pacheco Pass and 80,900 cars
per day on US Highway 101. APN: 841-18-071
ALL
±2.39 ACRES
EY
There are thirteen entry points to the property. There
ACCESS: are eight access points along Camino Arroyo and five
F
WY
along Renz Lane
.
APN: 841-18-070
The center provides striped surface parking for ±2.9 ACRES
PARKING: approximately 1,130 vehicles including 43 disabled 101
accessible for a ratio of 5.8/1,000. APN: 841-18-072 29,500
Vehicles Per Day
±1.33 ACRES
PACHECO PASS HWY.
PG. 10 | MATTRESS FIRM - WINGSTOP | GILROY, CA MATTRESS FIRM - WINGSTOP
BEST BUY | GILROY, CA | PG. 11
TENANT OVERVIEW
WINGSTOP
Wingstop Inc. is a chain of nostalgic, aviation-themed restaurants specializing in
Type Public
chicken wings. Wingstop locations are decorated following a 1930s and 1940s “pre-
Traded As NASDAQ: WING
jet” aviation theme. The restaurant chain was founded in 1994 in Garland, Texas,
Founded 1995
and began offering franchises in 1998. Since then, Wingstop has grown into a
Headquarters Dallas, TX
chain with more than 1,000 restaurants either open or in development. The chain is
Number of Locations +/- 1,000
headquartered in Dallas, Texas.
Total Revenue
$105.6 Million
(FY2017)
Website www.wingstop.com
Having grown its domestic same store sales for 13 consecutive years, the
Company has been ranked #3 on the “Top 100 Fastest Growing Restaurant
Chains” by Nation’s Restaurant News (2016), #7 on the “Top 40 Fast Casual
Chains” by Restaurant Business (2016), and was named “Best Franchise Deal in
North America” by QSR magazine (2014). Wingstop was ranked #88 on Fortune
’s 100 Best Medium Workplaces list in October 2016.
PG. 12 | MATTRESS FIRM - WINGSTOP | GILROY, CA MATTRESS FIRM - WINGSTOP | GILROY, CA | PG. 13
TENANT OVERVIEW MATTRESS FIRM
Type Mattress Firm Holding Corp.
With over 2,500 company-operated and franchised stores across 49 states, Mattress
Traded As NASDAQ: MFRM
Firm has the largest geographic footprint in the United States among multi-brand
Founded 1986
mattress retailers. Founded in 1986, Houston-based Mattress Firm is the nation’s
Headquarters Houston, TX
leading specialty bedding retailer with over $3.5
Number of Employees +/- 10,000 (2018)
billion in pro forma sales in 2015. In September
Total Revenue $980 Million (2017Q2)
2016, the company was acquired by Steinhoff
Website ww.mattressfirm.com
International for $3.8 billion, and Mattress Firm now operates as a subsidiary of
Steinhoff.
STEINHOFF INTERNATIONAL
Type Steinhoff International
The company, through its brands including Mattress Firm, Sleepy’s and Sleep
Exchange FWB & JSE
Train, offers a broad selection of both traditional and specialty mattresses, bedding
Founded 1964
accessories and other related products from leading manufacturers, including Serta,
Westerstede, Lower Saxony,
Headquarters
Simmons and Hampton & Rhodes. Germany
Number of Employees +/- 130,000 (2018)
Steinhoff International is a South African international retail holding company that is Website www.steinhoffinternational.com
dual listed in Germany. Steinhoff deals mainly in furniture and household goods, and
operates in Europe, Africa, Asia, the United States, Australia and New Zealand. As of
August 2016, Steinhoff held retailing activities in 30 countries, counting 6,500 retail
outlets belonging to 40 different brands, and employing
about 90,000 employees. 60% of the company’s
revenue, and two-thirds of its benefits, are made in
Europe. Steinhoff expanded into the United States market on 7 August 2016.
PG. 14 | MATTRESS FIRM - WINGSTOP | GILROY, CA MATTRESS FIRM - WINGSTOP | GILROY, CA | PG. 15
Industry & Economy
Historically, Gilroy’s economy has been based in agricultural products and
processing. Over the years, prunes, tomatoes, flowers, onions and, of course,
garlic, have contributed to the economic health of the agricultural industries. Food
LOCATION OVERVIEW processing centers have also established themselves in Gilroy, and government
Gilroy is centrally located within a short driving distance of Monterey Bay, Santa centers also employ many local residents. The Outlets at Gilroy, a five-phase retail
Cruz, the San Joaquin Valley, and the San Francisco Bay Area. Gilroy is situated complex, draws shoppers from all over the Bay Area and Central Coast regions.
in South Santa Clara County at the crossing of U.S. Highway 101 and State
Highway 152. 150 MILES • Projected job growth in Gilroy is expected to average between 0.8 and 1.6
percent annually over the next decade. Much of this job growth is expected to
The city is known for its peaceful residential environment, its award-winning
11 MILES occur in retail, transportation, construction, hospitality, information, and health
parks, golf course and recreation programs, and for its urban forest, for which
care.
the city has won Tree City USA awards annually since 1979. 88 MILES
• Gilroy’s proximity to Silicon Valley makes it an attractive location for operations
80 MILES
Population Trends looking for lower cost locations for expansion.
Gilroy is a growing community with a population of about 51,544.
25 MILES • Given the employment indicators and Gilroy’s worker profile, target industries
• Between 2000 and 2010, Gilroy’s population increased by 15 percent. potentially include wholesale/distribution; food manufacturing; sheet metal
Following Dublin with a 35 percent population increase, Gilroy was the fastest manufacturing; machine shops; communications equipment manufacturing; other
growing city among the comparison cities and the fastest among all cities in electrical equipment and component manufacturing; professional, scientific and
Santa Clara County. The trend continued between 2010 and 2013, with Gilroy technical services; and health services.
adding about 2,700 new residents.
Education
• Between 2010 and 2013, Gilroy’s population continued to accelerate, There are 15 public schools in the Gilroy Unified School District. Enrollment in
the district is about 11,400 students. The School Board, which sets policy, adopts
increasing close to 6 percent over three years, to a current total of 51,544.
the budget and hires personnel, is made up of seven members elected to 4-year
Compared to the other cities in the list, Gilroy was still the second fastest terms. The district has about 1,100 employees. Five private schools serve an
growing city after Dublin. additional 400 students, and approximately 4,500 students attend Gavilan College.
PG. 16 | MATTRESS FIRM - WINGSTOP | GILROY, CA MATTRESS FIRM - WINGSTOP | GILROY, CA | PG. 17
Pacheco Pass
Shopping Center
RETAIL MARKET RETAIL MARKET
Gilroy Outlets
• Gilroy currently has a net capture of regional sales in all retail
D
• Much of Gilroy’s retail support includes regional spending from
2,565 VP
residents living in surrounding communities, overnight visitors and categories except for florists, nurseries, second hand stores,
day travelers. specialty food stores, and full-service restaurants (including both
EY RD
restaurants with full bar service, and restaurant sales from hotels)
LEAVESL
• The strongest performing categories in Gilroy are apparel stores, .
PD
0V
service stations, eating places, and general merchandise stores. • With full-service restaurants, the leakage is not especially large,
,00
and fast-food and limited-service restaurants show a large net
23
RROYO
CAMINO A
• Geographically, Premium Outlets, Gilroy Crossing, and Pacheco capture of sales. However, with Gilroy’s large net capture in other SAN YSIDRO AVE 6,593 VPD
PACHECO PASS HWY
retail categories, full-service restaurants could be a potential area
6,92 TH ST
D
Pass Center alone account for half of Gilroy’s total taxable sales.
2 VP
of focus. ARROYO C
E6
IRCLE 4,913 VPD
80,900 VPD
• The Premium Outlets represent Gilroy’s largest taxable sales
generator with nearly $287 million in 2012. The outlet center • The outlets in particular are a significant visitor attraction, while
also showed strong growth, even during the recession and now Gilroy Crossing and Pacheco Pass Center function as highway Gilroy Crossing
accounts for 23.6 percent of the citywide taxable sales. commercial centers for travelers heading along CA-152.
South Valley
Plaza
MONTERE
Y RD
PG. 18 | MATTRESS FIRM - WINGSTOP | GILROY, CA MATTRESS FIRM - WINGSTOP
BEST BUY | GILROY, CA | PG. 19DEMOGRAPHICS POPULATION DENSITY DEMOGRAPHICS HOUSEHOLD INCOME
GILROY, CA 53,374+ RESIDENTS GILROY, CA $100,295 AHHI
POPULATION 1-MILE 3-MILE 5-MILE WITHIN 3-MILE RADIUS INCOME 2019 1-MILE 3-MILE 5-MILE WITHIN 3-MILE RADIUS
Estimated Population (2019) 6,473 53,374 66,386 Avg. Household Income $72,153 $100,295 $113,035
Projected Population (2024) 6,226 51,197 63,877 Median Household Income $52,747 $78,598 $89,822
HOUSEHOLDS 1-MILE 3-MILE 5-MILE BUSINESS FACTS 2019 1-MILE 3-MILE 5-MILE
Estimated Households (2019) 1,565 15,055 19,047 Total # of Businesses 426 1,948 2,119
Projected Households (2024) 1,636 15,760 19,861 Total # of Employees 5,874 23,031 24,614
PG. 20 | MATTRESS FIRM - WINGSTOP | GILROY, CA MATTRESS FIRM - WINGSTOP | GILROY, CA | PG. 21INVESTMENT CONTACTS
This Offering Memorandum contains select information pertaining to Owner and Colliers International expressly reserve the right, at their ERIC CARLTON JEREME SNYDER JOHN MACHADO
the business and affairs of Mattress Firm - WingStop - Gilroy, CA. It has sole discretion, to reject any and all expressions of interest or offers to Executive Vice President Executive Vice President Executive Vice President
been prepared by Colliers International. This Offering Memorandum purchase the Property and to terminate discussions with any person
may not be all-inclusive or contain all of the information a prospective or entity reviewing this Offering Memorandum or making an offer License No. 01809955 License No. 01360233 License No. 00876747
purchaser may desire. The information contained in this Offering to purchase the Property unless and until a written agreement for 949.724.5561 949.724.5552 408.282.3862
Memorandum is confidential and furnished solely for the purpose of the purchase and sale of the Property has been fully executed and eric.carlton@colliers.com jereme.snyder@colliers.com john.machado@colliers.com
a review by a prospective purchaser of the Property. It is not to be delivered.
used for any other purpose or made available to any other person
without the written consent of Seller or Colliers International. The If you wish not to pursue negotiations leading to the acquisition of
material is based in part upon information supplied by the Seller and Mattress Firm - WingStop - Gilroy, CA or in the future you discontinue
in part upon financial information obtained from sources it deems such negotiations, then you agree to purge all materials relating to this
reliable. Owner, nor their officers, employees, or agents makes any Property including this Offering Memorandum.
representation or warranty, express or implied, as to the accuracy or A prospective purchaser’s sole and exclusive rights with respect to
completeness or this Offering Memorandum or any of its contents and this prospective transaction, the Property, or information provided
no legal liability is assumed or shall be implied with respect thereto. herein or in connection with the sale of the Property shall be limited
Prospective purchasers should make their own projections and form to those expressly provided in an executed Purchase Agreement and
their own conclusions without reliance upon the material contained shall be subject to the terms thereof. In no event shall a prospective
herein and conduct their own due diligence. purchaser have any other claims against Seller or Colliers International
By acknowledging your receipt of this Offering Memorandum from or any of their affiliates or any of their respective officers, Directors,
Colliers, you agree: shareholders, owners, employees, or agents for any damages, liability,
or causes of action relating to this solicitation process or the marketing
1. The Offering Memorandum and its contents are confidential; or sale of the Property.
2. You will hold it and treat it in the strictest of confidence; and This Offering Memorandum shall not be deemed to represent the state
of affairs of the Property or constitute an indication that there has
3. You will not, directly or indirectly, disclose or permit anyone been no change in the state of affairs of the Property since the date
else to disclose this Offering Memorandum or its contents in this Offering Memorandum.
any fashion or manner detrimental to the interest of the Seller.
Colliers International | 3 Park Plaza, Suite 1200 | Irvine, CA 92614 | USA
Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability.
This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved
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