522 East Vine Avenue - LoopNet€¦ · opportunity in one of the strongest residential rental...

EDWARD PAN First Vice President

Lic. 01894476Office +1 213 532 3292

Mobile +1 626 720 [email protected]

DAVID LIN Vice PresidentLic. 01950152

Office +1 213 532 3290Mobile +1 626 257 8502

[email protected]

JASON LIN Associate Vice President

Lic. 01814243Office +1 213 861 3344


Colliers International 865 S. Figueroa Street | Suite 3500

Los Angeles, CA 90017colliers.com/greaterlosangeles

522 East Vine Avenue

Retail Investment Offering Memorandum

522 E. Vine Ave. | West Covina CA 91790

Executive Advisors

2 Sect ion Name

522 E . V ine Avenue | West Cov ina , CA 1

This document has been prepared by Colliers International for advertising and general information only. 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. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2019. All rights reserved.

Table of Contents

Executive Summary 2

Property Overview 4Location Overview 6Financial Summary 14

Market Comparables 22

2 Execut ive Summary


Executive Summary Colliers International, as an exclusive advisor to the seller, is pleased to present for sale the Three-Unit Retail Center in West Covina located at 522 E. Vine Avenue. The three-unit retail building totaling 5,800 gross leasable square feet presents an exceptional NNN investment opportunity in one of the strongest residential rental markets in Los Angeles. Current tenants at this property are Flame Broiler, Ranchtown Market and El Jireh Restaurant (formerly known as Las Champas Restaurant). El Jireh Restaurant has excercised an early 10-year lease renewal and in addition they will be expanding their operations and leasing the current Ranchtown Market retail space starting 12/1/2020.

Investment Highlights

• Three - Units: Current tenants - Flame Broiler, Ranch Town Market and

El Jireh Pupuseria Restaurant

• Traffic Counts Exceeding ±32,000 Vehicles Per Day

• Located in the heart of West Covina with over 200,000 people in a

3-Mile Radius

• Median Household Income: $77,000 Per Year in a 1-Mile Raidus

• El Jireh Restaurant has executed an early 10-year renewal at the

location starting 12/1/2020.

4 Property Overv iew

NNN Corner Lot Retail Center

Summary

Lease Types NNN

Price Per Square Foot $513.79

Rent Per Square Foot $25.44

Gross Leasable Area 5,800 SF

Lot Size 0.56 AC

Year Built 1948

Offering Summary

Price $2,980,000

Net Operating Income $134,940

CAP Rate 4.53%

CAP Rate (effective 12/2020) 5.0%

Investment Summary


Property Details

Dedicated Parking Located in

Front and Rear

The Offering Property 522 E. Vine Avenue

Price $2,98,000

Property Address522 E Vine Ave, West Covina CA 91790

APN 8488-002-001

Zoning WCC1YY

UtilitiesWater Mastered Metered

Phone Individually Metered

Electric Individually Metered

Gas Individually Metered

ConstructionFoundation Concrete Slab

Framing Wood

Exterior Stucco

Parking Surface Asphalt

Roof Tile

Site DescriptionNumber of Units 3

Number of Buildings 1Number of Stories Single

Year Built/Renovated 1948

Rentable Square Feet 5,800

Lot Size 0.56 acre(s)

Type of Ownership Fee Simple

Parking 17 pkg spots in rear/ 11 in front

Landscaping Updated

6 Financ ia l Summary


Financial Summary

Investment Summary

Price $2,980,000

Down Payment -

Year Built 1948

Units 3

RSF 5,800 RSF

Lot Size 0.56 AC

Zoning WCC1YY

APN 8488-002-001

NOI $134,940

CAP Rate 4.53%

CAP Rate (effective 12/2020) 5.00%

*Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification.

5,800 sfRSF

$2,980,000PRICE

Summary

Lease Types NNN

Price Per Square Foot $513.79

Rent Per Square Foot $25.44

Gross Leasable Area 5,800 SF

Lot Size 0.56 AC

Year Built 1948

Annualized Expenses

Actual

Utilities $25,613.23

Property Taxes $21,731.97

Insurance $3,188.45

Cleaning/Landscaping $1,220

Trash $5,443.23

Alarm $744.33

Management $5,000

Total $62,941.21

Total Rent $134,940

Total Expense$62,941.21 (alll expenses are

reimbursed by tenants)

Net Operating Income $134,940

Expense Report

8 Financ ia l Summary8 Property Overv iew

NNN in PrimeWest Covina

2315 Bar low Street | Los Ange les , CA 9

Tenant GLA Lease Term Annual Total Rent CAM Rent/SF Options

Flame Broiler 1,000 5/1/2017-3/30/2022 $39,600 $10,546.44 $39.60 2, 5 Year

Ranch Town Market 2,320 11/20/2013-11/22/2020 $49,440 $15,063.65 $21.31 TBD

El Jireh Restaurant 2,480 12/1/2020-011/30/2030 $45,900 $19,854.48 $22.50 TBD

TOTAL 5,800 $134,940 $38,505.19 $27.80

Rent Roll - Current


Traffic Counts Exceeding 32,000 Vehicles

Per Day

Tenant GLA Lease Term Annual Total Rent CAM Rent/SF Options

Flame Broiler 1,000 5/1/2017-3/30/2022 $40,800 $10,546.44 $48.00 2, 5 Year

El Jireh Restaurant 4,800 12/1/2020-011/30/2030 $108,000 $19,854.48 $22.50 TBD

TOTAL 5,800 $148,800 $38,505.19 $54.76

Rent Roll - Effective December 1st, 2020

Tenant Profile

10 Financ ia l Summary

TENANT PROFILETenant Flame BroilerRentable SF 1,000 SFLease Commencement May 1, 2017Lease Expiration April 30, 2022Term Remaining 2+ YearsOptions to Renew 2/5 Year OptionsCurrent Base Rent $39,600Guarantor Franchisee

TENANT PROFILETenant El Jireh Pupuseria & Restaurant Rentable SF 2,480 SFLease Commencement December 1, 2020Lease Expiration November 30, 2030Term Remaining 10 YearsOptions to Renew TBDCurrent Base Rent $45,900 Guarantor Franchisee

TENANT PROFILETenant Ranch Town Market Rentable SF 2,320 SFLease Commencement November 20, 2013Lease Expiration November 22, 2020Term Remaining 1+ YearsOptions to Renew TBDCurrent Base Rent $49,440 Guarantor Franchisee


Operating Income and Expense Statement 10/1-12/31, 2014 1/1-12/31, 2015 1/1-12/31, 2016 1/1-12-31, 2017 1/1-12/31, 2018

Gross Rental Income $25,700 $103,200 $105,600.00 $111,800.00 $124,810.00

Utilities $4,501.62 $25,023.45 $23,653.15 $24,678.55 $25,613.23

CAM’s (common area reimbursements) $4,416.33 $19,392.07 $29,654.91 $31,872.29 $32,327.98

Total Income $34,617.95 $147,615.52 $158,908.06 $168,350.84 $182,751.21

EXPENSES

Utilities $4,501.62 $25,023.45 $23,653.15 $24,678.55 $25,613.23

Real Estate Taxes $3,187.74 $14,957.71 $19,941.78 $21,243.19 $21,731.97

Insurance $628.59 $2,514.36 $2,779.77 $3,549.25 $3,188.45

Property Management - - - - -

Cleaning/Landscaping $550.00 $1,920.00 $1,520.00 $1,220.00 $1,220.00

Repair/Fees/PO Box $5,992.50 $1,857.00 $4,744.06 $5,153.35 $5,443.23

Business License $100 $100 $669.30 $706.50 $744.33

TOTAL EXPENSES $14,460.45 $46,372.52 $53,308.06 $56,550.84 $57,941.21

NET INCOME $19,657.50 $101,243.00 $105,600.00 $111,800.00 $124,810.00

Operating Income & Expense Statement

12 Sect ion Name 2315 Bar low Street | Los Ange les , CA 12

Location OverviewThe 2010 United States Census reported that West Covina had a population of 106,098. The population density was 6,594.3 people per square mile (2,546.1/km²). The racial makeup of West Covina was 42.8% White (15.3% Non-Hispanic White),[5] 4.5% Black, 1.0% Native American, 25.8% Asian, 0.2% Pacific Islander, 21.3% from other races, and 4.4% from two or more races. Persons of Hispanic or Latino origin were 53.2%.

The Census reported that 105,424 people (99.4% of the population) lived in households, 351 (0.3%) lived in non-institutionalized group quarters, and 323 (0.3%) were institutionalized.

There were 32,705 housing units at an average density of 2,032.7 per square mile (784.8/km²), of which 20,703 (65.5%) were owner-occupied, and 10,893 (34.5%) were occupied by renters.

Location Highlights

Rated “Very Walkable” by Walk Score

Nearby Many Public Transportation Options

Immediate Access to 605 and 10 Fwys

Moments Away from Major Downtown L.A. Employers

Countless Shopping,Dining and Entertainment Amenities in Nearby Downtown

Food & Services1. Hong Kong Plaza2. Circle K3. Walgreens Pharmacy4. McDonalds5. Burger King6. Wells Fargo7. Planet Fitness8. Bank of America

1. Baldwin ElementarySchool

2. 10 & 605 FwyInterchange

Amenities Map | Southwest View

Food & Services1. Hong Kong Plaza2. King Torta3. Plaza West Covina Mall4. Petco5. Domino’s Pizza6. Vons7. Chevron

1. West Covina DMW2. West Covina Employment

Center

Amenities Map | Northeast View

2315 Bar low Street | Los Ange les , CA 1313 Locat ion Overv iew

14 Sect ion Name

2315 Bar low Street | Los Ange les , CA 1515 Market Comparab les

16 Sect ion Name 2315 Bar low Street | Los Ange les , CA 16

The City of West Covina began the second half of the 20th century with new developments and projects, mostly brought on by big business. The City Hall and police facility were built in 1969 as the first phase of an example of a Joint Powers Authority in the County of Los Angeles. The Civic Center Joint Powers Authority, consisting of the County of Los Angeles and the City of West Covina, also completed a 3 lvl pkg structure in the Civic Center complex. The Civic Center complex includes the LA County Regional Library, the Citrus Municipal Court bldg and city offices.

The first Redevelopment Agency project included a regional shopping center, the West Covina Fashion Plaza, with three major department stores and 150 shops in an air-conditioned, enclosed mall. It also included the revitalization of the older sections of the shopping center. The Fashion Plaza has provided the citizens of the San Gabriel Valley with convenient access to all shopping needs. In 1991 the mall was renovated adding a food court and additional shops. The mall was renamed “The Plaza at West Covina”. The Plaza opened a new 100,000 sq ft (9,300 m2). wing in Oct 1993 featuring 50 new stores including a new Robinson’s-May and interior renovation throughout The Plaza.

The Redevelopment Agency’s efforts have also resulted in several major office buildings in the city, such as “The Lakes”, in addition to two new community shopping centers, freestanding retail developments, restaurants, residential projects, and the Auto Plaza.

The estimated 2019 United States Census reports the population within a 5 mile radius of the subject property, to be 515,644, and an estimated growth rate of 2.23% from 2019-2024. The single-classification by race indicates the following breakdown within a 5 mile radius of the subject property: white 43.5%, Black/African American 2.02%, American Indian 0.91%, Asian 21.88%, Native Hawaiian 0.16%, Other 27.54%, 2/more 3.85%

West Covina, California

OCCUPATION CLASSIFICATIONwithin a 5 mile radius of the

property is 53.08% White Collar

income bracket within a 5 mileradius of property is $50-75k/year

LARGEST HOUSEHOLD

within a 5 mile radius is expectedto reach 2.31% by 2024

POPULATION GROWTH

Submarket Housing Trends

2315 Bar low Street | Los Ange les , CA 1717 Locat ion Overv iew

Population

Households

Income

Race and Ethnicity

Housing

Employment

In 2019, the population of West Covina was 515,644 within a 5 mile radius of the subject property. There has been a population change of 2.48% since 2010. It is estimated that the population of West Covina will be 527,156 five years from now, which represents a change of 2.23% from the current year. Currently, there are 49.26% male and 50.74% females.

There are currently 135,308 households in West Covina. It is estimated that the number of households in West Covina will be 138,433 five years from now, which represents a change of 2.31% from the current year. The average household size is 3.79 persons.

In 2019, the median household income for West Covina was $71,580, compared to the US average which is currently $57,617. The largest median household income bracket of 17.77% are earners between $50,000-$75,000, and the second largest brakcet of 14.55% being household income earners between $75-$100k.

The current year racial makeup of West Covina is as follows: 43.65% White, 2.02% Black, 0.91% Native American and 22.04% Asian/Pacific Islander.

The median housing value within a 5 mile radius of the property was $498,069 in 2019, compared to the US average of $320,300. In 2019, there were 88,125 owner occupied housing units and 47,183 renter-occupied housing units within a 5 mile radius of the subject property.

In 2019, there were 233,769 employees within a 5 mile radius of the subject proeprty, also known as daytime population. The 2019 Census realized that 53.08% of employees are employed in white-collar occupations in this geography, and 26.39% are employed in blue-collar occupations. In 2019, the average time traveled to work was 36 minutes.

Market Highlights


This document has been prepared by Colliers International for advertising and general information only. 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. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2019. All rights reserved.

Colliers International 865 S. Figueroa Street | Suite 3500

Los Angeles, CA 90017colliers.com/greaterlosangeles

EDWARD PAN First Vice President

Lic. 01894476Office +1 213 532 3292


DAVID LIN Vice PresidentLic. 01950152

Office +1 213 532 3290Mobile +1 626 257 8502

[email protected]

JASON LIN Associate Vice President

Lic. 01814243Office +1 213 861 3344


522 East Vine Avenue - LoopNet€¦ · opportunity in one of the strongest residential rental...

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