Net Lease Best Buy For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

Best Buy 23000 Savi Ranch Parkway

Yorba Linda, CA (Los Angeles MSA)



1) Confidentiality&Disclaimer

2) ExecutiveSummary

3) PropertyOverview

4) AssumableFinancingOverview

5) Aerial

6) SitePlan

7) Maps

8) TenantProfile

9) DemographicComparisonReport

10) LocationOverview

11) ContactInformation

TABLE OF CONTENTS

TABLE OF CONTENTS

8) Tenant Profile

9) Demographic Comparison Report

10) Location Overview

11) Contact Information



TheinformationcontainedinthefollowingOfferingMemorandumisproprietaryandstrictlyconfidential.ItisintendedtobereviewedonlybythepartyreceivingitfromTheBoulderGroupandshouldnotbemadeavailabletoanyotherpersonorentitywithoutthewrittenconsentofTheBoulderGroup.ThisOfferingMemorandumhasbeenpreparedtoprovidesummary,unverifiedinformationtoprospectivepurchasers,andtoestablishonlyapreliminarylevelofinterestinthesubjectproperty.Theinformationcontainedhereinisnotasubstituteforathoroughduediligenceinvestigation.TheBoulderGrouphasnotmadeanyinvestigation,andmakesnowarrantyorrepresentation.TheinformationcontainedinthisOfferingMemorandumhasbeenobtainedfromsourceswebelievetobereliable;however,TheBoulderGrouphasnotverified,andwillnotverify,anyoftheinformationcontainedherein,norhasTheBoulderGroupconductedanyinvestigationregardingthesemattersandmakesnowarrantyorrepresentationwhatsoeverregardingtheaccuracyorcompletenessoftheinformationprovided.Allpotentialbuyersmusttakeappropriatemeasurestoverifyalloftheinformationsetforthherein.

CONFIDENTIALITY & DISCLAIMER

CONFIDENTITALITY & DISCLAIMER



The Boulder Group is pleased to exclusively market for a sale single tenant net leased Best Buy property located in the Los Angeles MSA. The Best Buy property is located in the city of Yorba Linda, approximately 30 miles southeast of downtown Los Angeles. Yorba Linda is located in northern Orange County, which is recognized as one of the most counties in the United States. Average household income is in excess of $134,800 within three miles of the property. Best Buy has high visibility from Riverside Freeway 91, a primary thoroughfare that experiences volumes in excess of 300,000 vehicles per day. Riverside Freeway 91 runs directly to Newport Beach, approximately 20 miles southwest of the property. Additionally, the property has excellent ingress and egress and an abundance of on-site parking.

The property is located within Savi Ranch Park; Savi Ranch Park is a regional trade destination encompassing a wide range of retail, dining, entertainment and buildings. The area is home to over 130 retailers and businesses. Best Buy is positioned as a freestanding outparcel to a shopping center anchored by Kohl’s, Dick’s Sporting Goods, Bed Bath & Beyond and Michaels. The Best Buy has shared access with the shopping centers and business within Savi Ranch Park. Other retailers in the immediate area include Costco, Target, Home Depot, Staples, Petco and Regal Cinema 14. Major employers in Savi Ranch Park include CareFusion (NYSE: CFN) and Nobel Biocare (Swiss Stock Exchange: NOBN). The property further from its location in the northern Orange County submarket due to the low overall retail vacancy rate of 5.8%. The overall retail vacancy rate has remained stable at this low rate for the last three quarters and is projected to decrease in the near future.

The original lease commenced in December 1997 with a primary term of 20 years. The lease features three 5-year renewal option periods with 5% rental escalations. Best Buy is a publicly traded company on the New York Stock Exchange (BBY), with a market capitalization of $11 billion. Best Buy has a Standard & Poor’s rating of BB.

INVESTMENT HIGHLIGHTS

• Located within the Los Angeles MSA

• Located in Orange County with average household income in excess of $134,800 within three miles of the property

• The northern Orange County submarket has an overall retail vacancy rate of 5.8%

• Best Buy is a publicly traded company (NYSE: BBY)

• 5% rental escalations in each of the three 5-year renewal option periods

• Located in a primary retail trade area as an outparcel to a shopping center anchored by Kohl’s, Dick’s Sporting Goods, Bed Bath & Beyond and Michaels

• Positioned adjacent to Riverside Freeway 91 (300,000 VPD)

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

• Bond net lease with no landlord responsibilities



PROPERTY OVERVIEW

PROPERTY OVERVIEW

Price: $6,300,000

CapRate: 9.37%

RentSchedule: NOI EscalationDate

$590,389$619,908 1/1/2018(Option1)$650,904 1/1/2023(Option2)$683,449 1/1/2028(Option3)

RenewalOptions: Three5-Year

LeaseCommencementDate: December24,1997

LeaseExpirationDate: December31,2017

Tenant: BestBuy

CreditRating: BB(Standard&Poor’s)

YearBuilt: 1997

LandlordObligations: None

RentableSquareFeet: 46,449

LandSize: 4.0acres



ASSUMABLE FINANCING OVERVIEW

ASSUMABLE FINANCING OVERVIEW

LoanBalance(November2013): $2,883,753MaturityDate: December1,2022InterestRate: 5.98%AnnualDebtService: $379,240Term: 15yearAmortization: 16yearLoantoValue: 46%EquityInvestment: $3,416,247LoanBalanceatMaturity: $396,861LoanBalanceatLeaseExpiration: $1,908,018CashonCashReturn: 6.18%AssumptionFee: 1%ofOutstandingBalanceRecourse: None

Assumable Financing Overview

Thepurchasermustassumetheinplacefinancingdetailedbelow.

2013 2014 2015 2016 2017Net Operating Income $590,389 $590,389 $590,389 $590,389 $590,389Mortgage Payments $(379,240) $(379,240) $(379,240) $(379,240) $(379,240)Cash Flow $211,149 $211,149 $211,149 $211,149 $211,149Cash on Cash Return 6.18% 6.18% 6.18% 6.18% 6.18%

Cash on Cash: November 2013 - December 2017

Theaboveareshownonafullyearbasis



AERIAL

AERIAL

300,000 VPD

36,000 VPD

YORBA LINDA DRIVE

N



SITE PLAN

SITE PLAN

300,

000

VPD

N



MAPS

MAPS



Best Buy is an American multinational consumer electronics corporation headquartered in Minnesota. Best Buy operates numerous subsidiaries including CinemaNow, Geek Squad, Magnolia Audio Video, Sales, Cowboom, and in Canada operates under both the Best Buy and Future Shop labels. Best Buy operates over 1,150 stores and over 100 Best Buy Express automated retail stores in airports and malls across the country. Best Buy stores sell electronics, movies, music, computers, televisions, games, and appliances offering brand name products including Apple, Samsung, Sony and Toshiba. Additionally, Best Buy engages in the sale of cellular phones including Verizon Wireless, AT&T Wireless, Sprint PCS, Boost Mobile and T-Mobile. Best Buy is publicly traded on the NYSE under the symbol BBY and has a market cap of $11 billion.

Website: www.bestbuy.comNumber of Locations: Stock Symbol: BBYStandard & Poor’s Rating: Market Capitalization: $11 billion

TENANT PROFILE

TENANT PROFILE

BB

1,150



Population 1-mi 3-mi 5-mi

TotalPopulation 9,333 62,932 117,041TotalHouseholds 3,343 21,738 40,389

Income

MedianHouseholdIncome $110,823 $112,212 $108,131AverageHouseholdIncome $135,296 $134,825 $128,612

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORT



Yorba Linda is an affluent suburban community in northeastern Orange County, Californiaapproximately30milessoutheastofdowntownLosAngeles.YorbaLindahasamedianhouseholdincomeinexcessof$120,000andisidentifiedasoneoftherichestcitiesintheU.S.bytheU.S.CensusBureau.Atthetimeofthe2010U.S.Census,YorbaLindahadapopulationof64,234.TheYorbaLindaeconomyisanchoredbytwomaincommerciallyzonedareas,SaviRanchand

thenorthsideofLaPalmaAvenuewhichisprimarilyanofficepark.SaviRanchcontainsretailers,autodealers,hotelsandofficebuildings.MajoremployersinYorbaLindainclude,CareFusion(NYSE:CFN),NobelBiocareandCostco.

www.ci.yorba-linda.ca.us

Los Angeles is themostpopulouscity in thestateofCaliforniaand thesecondmostpopulouscityintheUnitedStates,secondtoonlyNewYorkCity.Atthetimeofthe2010U.S.CensusLosAngeleshadapopulationof3,792,621and thegreater LosAngelesMSAhadapopulationofover 12,800,000. Los Angeles is a global city, with strengths in business, international trade,

entertainment,culture,media,fashion,science,sports,technology,educationandmedicineandresearch.ThecityhasbeenrankedsixthintheGlobalCitiesIndexand9thintheGlobalEconomicPowerIndex.

LosAngelesismostwellknownasbeingthehometoHollywood,globallyrecognizedastheepicenterofthemotionpictureindustry.OthermajorlandmarksintheLosAngersareaincludeGrauman’sChineseTheater,WaltDisneyConcertHall,GriffithObservatory,L.A.LiveandtheCapitolRecordsBuilding.ThecityishometoseveralprofessionalsportsteamsincludingtheLosAngelesDodgersofMajorLeagueBaseball,theLosAngelesKingsof theNationalHockeyLeague, theLosAngelesClippersandLosAngelesLakersof theNationalBasketballAssociation.TheeconomyofLosAngelesisdrivenbyinternationaltrade,entertainment,aerospace,technology,fashionandtourism.ThecityishometosixFortune500companiesincludingOccidentalPetroleum,HeathNet,AECOM,CBRERealEstateandTutorPerini.Additionally,therearemultipleuniversitieslocatedinLosAngeles,amongthemareTheUniversityofSouthernCalifornia,UniversityofCaliforniaLosAngelesandCaliforniaStateUniversity,LosAngeles.

www.lacity.org

LOCATION OVERVIEW

LOCATION OVERVIEW



666DundeeRoad,Suite1801Northbrook,IL60062

Randy [email protected]

Jimmy [email protected]

CONTACT INFORMATION

CONTACT INFORMATION

ThepropertyisbeingmarketedinconjunctionwithJasonPongsrikul,alicensedCaliforniaRealEstateBroker(CALIC#:01785565)

Net Lease Best Buy For Sale

Real Estate

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