SBUX - Offering Memorandum · This offering memorandum has been prepared to provide summary,...

Starbucks Drive-Thru & Shops

Offering Memorandum

Riverside, California

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality Agreement

Exclusively listed by:

OFFICES NATIONWIDE

www.marcusmillichap.com

Richard Vincent National Retail Group

ONTARIO OFFICE

Tel: (909) 456-3491

Fax: (909) 456-3410

[email protected]

License: CA 01930526

Pablo RodriguezNational Retail Group

ONTARIO OFFICE

Tel: (909) 456-7032

Fax: (909) 456-3410

[email protected]

Licenses: CA 01870757

exclusively listed

EXECUTIVE SUMMARYOffering Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Summary of Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

PROPERTY DESCRIPTIONProperty Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Local Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Aerial Photograph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Site Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

FINANCIAL ANALYSISRent Roll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Lease Expiration Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

COMPETITIVE PROPERTY SETRecent Sales Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Recent Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19-20On Market Comparables Map . . . . . . . . . . . . . . . . . . . . . . . . . . . 21On Market Comparables . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22-23

MARKET OVERVIEWLocation Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Riverside-San Bernardino Market Overview. . . . . . . . . . . . . . . 26-32Demographic Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33-34

Table of Contents

summaryE X E C U T I V E S U M M A R Y

EXECUTIVE SUMMARY

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 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap ACT ID V0080529

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starbucks drive-thru and shops

PROPERTY

Starbucks and Shops

3707 Arlington Avenue

Riverside, CA 92506

OFFERING SUMMARY

Price $2,475,000

Current Occupancy 100%

Gross Leasable Area (GLA) 4,878 Square Feet

Year Built 2004

Lot Size 22,215 SF/ 0.51 AC

Price/SqFt $507.38

VITAL DATA

Net Operating Income - Current $136,063

CAP Rate 5.50%

Financing Free and Clear - Proposed (New)

Major Employers

Riverside County

San Bernardino County

Stater Bros.

Loma Linda University Medical Center

Kaiser Permanente

MAJOR EMPLOYERS

Tenant GLA Lease Exp Lease Type

Starbucks 1,528 SF 09/30/2024 NNN

Dentures by Den 840 SF 10/31/2014 NNN

Computer Repair Shop 380 SF 02/28/2015 NNN

The Williams Company 860 SF 10/31/2015 NNN

EClips Hair & Nails 840 SF 09/14/2017 NNN

MAJOR TENANTS DEMOGRAPHICS

1-Mile 3-Miles 5-Miles

2013 Population 15,494 108,038 291,695

2018 Population 15,701 108,948 291,695

2013 Households 5,005 34,285 85,774

2018 Households 5,128 35,057 88,704

Median HH Income $49,067 $53,932 $52,846

Per Capita HH Income $20,673 $24,424 $22,199

Average HH Income $62,847 $75,136 $71,775


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EXECUTIVE SUMMARY

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Current Per SF Pro Forma Per SF

Real Estate Taxes $7,044 $1.44 $30,268 $6.21

Insurance $2,798 $0.57 $2,798 $0.57

CAM

Utilities $10,780 $2.21 $10,780 $2.21

Repairs & Maintenance $6,473 $1.33 $6,473 $1.33

Contract Services $11,455 $2.35 $11,455 $2.35

TOTAL CAM $28,708 $5.89 $28,708 $5.89

Management Fee $4,755 $0.97 $4,755 $0.97

TOTAL EXPENSES $43,305 $8.88 $66,529 $13.64

S SEXPENSES

EXECUTIVE SUMMARY


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INCOME & EXPENSES

Current Per SF Pro Forma Per SF

Base Rent

Occupied Space $132,591 $27.18 $140,331 $28.77

GROSS POTENTIAL RENT $132,591 $27.18 $140,331 $28.77

Expense Reimbursements

CAM $37,538 $7.70 $60,762 $12.46

Total Expense Reimbursements $37,538 $7.70 $60,762 $12.46

GROSS POTENTIAL INCOME $170,129 $34.88 $201,093 $41.22

EFFECTIVE GROSS INCOME $170,129 $34.88 $201,093 $41.22

Total Expenses $43,305 $8.88 $66,529 $13.64

NET OPERATING INCOME $126,824 $26.00 $134,564 $27.59

Gross Leasable Area (GLA) 4,878 SF


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EXECUTIVE SUMMARY

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Marcus & Millichap is pleased to present an extremely rare opportunity to own Starbucks Drive-Thru and Shops in the City of Riverside, California. The property is ideally situated on the signalized hard corner of the highly trafficked Arlington Avenue and Brockton Avenue. The property is exposed to more than 30,000 vehicles daily. This offering includes both a fee simple Starbucks and the multi-tenant retail shops behind. Across the street is Notre Dame High School, a private Roman Catholic high school, with approximately 500 students and 55 faculty and staff members. In addition, the Riverside Roman Catholic Church, St. Catherine of Alexandria, which is believed to have an estimated 5,000 parishioners is catty-corner to the subject property. Directly across the street is the Riverside Medical Clinic, which has 92 doctors and specialists and an urgent care open seven days a week. Located within the Magnolia Center, one of the three medically-oriented market areas of the City of Riverside [the two others include Downtown Riverside and Arlington Area], there are an impressive 100 additional medical professionals and clinics within walking distance of the property.

The blend of both the Starbucks and retail components provide the ideal balance between the passivity of single-tenant ownership and the inflationary hedge benefits of multi-tenant retail. Starbucks, which has a Standard & Poor’s credit rating of A-, is under a corporate-backed triple-net (NNN) lease, with low management and high stability. On the opposite side of the retail spectrum, the investor also has the opportunity to own a multi-tenant strip center with under market rents, which provides investors who want versatility and an opportunity to manage and maintain a simple multi-tenant building. There are few, if any, e-commerce resistant properties on the market that can surpass this asset. All tenants in the strip center are highly resistant to e-commerce, which is now a threat to many retailers’ profitability and sustainability in physical brick and mortar locations. Moreover, the existing tenants have decades of occupying at the premises under their belt.

Strategically located at the crossroads of Southern California, the City of Riverside is the county seat for the County of Riverside. Its convenient location makes doing business within Southern California ideal, with easy access to other major cities including the San Bernardino, Los Angeles, and Orange County areas. Riverside continues to be recognized as the legal, financial, and educational leader of the two-county Inland Empire. Businesses in Riverside benefit from convenient rail access, high-speed fiber optic and wireless telecommunications, reasonable land and building costs, reliable city-owned electrical and water systems and a large general aviation municipal airport. The city’s workforce population is estimated to exceed 165,000 workers. Riverside has several new development projects in the works aimed to bring more jobs, office/medical space, retail stores and dinning opportunities to the city. This continued growth illustrates Riverside’s economic stability and a bright future for local businesses.

Investment Highlights

■ Starbucks with 10 Plus Years Remaining on the Triple Net Lease■ High Growth Area - Over Seven Percent Growth is Projected Within the Next

Five Years■ Located on a Hard, Signalized Corner of Arlington and Brockton Avenue■ E-Commerce Resistant Trophy Asset with Under Market Rent■ Top Performing Starbucks Location in Riverside County■ Phenomenal Visibility and Exposure■ Strong Traffic Counts and Rapidly-Growing Demographics■ Starbucks Recently Extended the Lease Early - Exercising Two Options at

Once

Investment Overview

EXECUTIVE SUMMARY


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Interest Offered

Fee simple interest in Starbucks Drive-Thru and Shops, a 4,878-square foot strip center located at 3707 Arlington Avenue, Riverside, California 92506.

Terms of the Sale

The property is being offered at a price point of $2,475,000. For further details, please review the Financial Analysis section of this offering memorandum.

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 contact the on-site management or staff without prior approval.

Summary of Terms

descriptionP R O P E R T Y D E S C R I P T I O N

PROPERTY DESCRIPTION

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Starbucks drive-thru and shops


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THE OFFERING

Property Starbucks Drive-Thru and Shops

Property Address 3707 Arlington Avenue, Riverside, CA 92506

SITE DESCRIPTION

Gross Leasable Area: 4,878 Square Feet

Ownership: Fee Simple

Year Built: 2004

Number of Stories: One

Parking: 30 Spaces

Parking Ratio: 6/1,000

Topography: Flat

PARCELS

Number of Tax Parcels One

APN 225-293-050


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SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS Shamel Park

Notre DameHigh School

30,000 ADT

RIVERSIDE PLAZA

165,000 A

DT

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 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap ACT ID S0000000

26,1

04 A

DT

29,900 ADT

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16

FINANCIAL ANALYSIS

Rent Roll

Tenant Name Suite Number Lease Dates & Term

Floor SFBldg Share

Rate & AmountPer YearPer Month Increases

CAMPer YearPer Month Lease Type Comments

Starbucks - Minimal landlord obligationsPAD 1,528 SF $77,061.00 10 percent increases every $13,568.64 NNN - Starbucks reimburses for 55 percent of shopping center 09/30/2014 - 08/30/2024 31% $6,421.80 five years $1,130.72 operating expenses, including taxes

The Williams Company Annual CPI Increases - Tenants pay pro rata share of operating expenses and

taxesSuite 3715 A & B 860 SF $14,424.00 Minimum 3% Annually $7,636.80 NNN11/01/2013 - 10/31/2015 17% $1,202.00 Maximum 8% Annually $636.40

Computer Repair Shop - Tenants pay pro rata share of operating expenses and

taxesSuite 3713 (B) 380 SF $7,350.72 - $3,374.40 NNN03/01/2014 - 02/28/2018 7% $612.56 $281.20

Dentures By Den Annual CPI Increases - Tenants pay pro rata share of operating expenses and

taxesSuite 3713 (A) & 3711 (B) 840 SF $14,366.88 Minimum 3% Annually $7,459.20 NNN11/01/2009 - 10/31/2017 17% $1,197.24 Maximum 8% Annually $621.60

Vacant - Proforma based upon $1.50 per month Triple Net leaseSuite 3711 (A) 430 SF $7,740.00 - $3,818.40 NNN- 8% $645.00 $318.20

EClips Hair & Nails - Tenants pay pro rata share of operating expenses and

taxesSuite 3709 (A) & 3709 (B) 840 SF $15,120.00 3% Annually $7,459.20 NNN01/01/2014 - 12/31/2016 17% $1,243.20 $621.60

TOTALS 4,878 SF $136,062.60 $43.316.64

$11,338.55 $3,609.72

competitiveC O M P E T I T I V E P R O P E R T Y S E T

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18

COMPETITIVE PROPERTY SET

Recent Sales

Starbucks and Shops Riverside

Recent Sales

1 Starbucks Drive-Thru and Metro PCS

2 Starbucks Drive-Thru and Other

3 Starbucks Spring Valley

4 Fairfield Ranch Retail Center

5 Starbucks and Yoshinoya

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19




Starbucks Drive-Thru and Shops (Subject Property) 3707 Arlington Avenue, Riverside, CA 92506

Sales Price: $2,475,000 Percent Down: 100% Cap Rate: 5.50%Price/SF: $507.38Gross Leasable Area (GLA): 4,878 Square FeetSales Occupancy: 100%Year Built: 2004

Major Tenants

Starbucks

Dentures by Den

Computer Repair Shop

The Williams Company

EClips Hair & Nails

1 Starbucks Drive-Thru and Metro PCS 3583 East 3rd Street, Los Angeles, CA 90063

Close of Escrow: 2/14/2013Sales Price: $1,850,000 Percent Down: 100% Cap Rate: 6.30%Price/SF: $645.72Gross Leasable Area (GLA): 2,865 SFSales Occupancy: 100% Year Built: 2006

Major Tenants

Starbucks

Metro PCS

COMMENTS: This two-tenant Starbucks Drive-Thru and Metro PCS is strategically located on the signalized intersection of East 3rd Street and Gage Avenue in the City of Los Angeles. Both tenants are currently under Triple Net leases for ease of management.

2 Starbucks Drive-Thru and Other 292 East 40th Street, San Bernardino, CA 92404


Major Tenants

Starbucks

COMMENTS: The sale of this property included a valuable Starbucks Drive-Thru in addition to a vacant 1,450 square-foot unit whose rent was guaranteed by the seller for one year.

Recent Sales

COMMENTS: The subject property is located in Riverside, California adjacent to a private Roman Catholic high school (Notre Dame High School) as well as the Riverside Medical Clinic (with a 24 hour urgent care facility). Starbucks recently extended their lease and is one of the top performing Starbucks locations in the County of Riverside.

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3 Starbucks Spring Valley 9809 Campo Road, Spring Valley, CA 91977

Close of Escrow: 2/12/2014Sales Price: $2,870,000 Percent Down: 100% Cap Rate: 4.38%Price/SF: $1,693.06Gross Leasable Area (GLA): 1,642 SFSales Occupancy: 100% Year Built: 2013

Major Tenants

Starbucks

COMMENTS: This new Starbucks Drive-Thru in Spring Valley is ideally located in a major retail hub with shops including Albertsons, Dollar Tree, Big 5 Sporting Goods, Subway, Chevron, US Bank, Little Caesar’s Pizza, and much more. Being in a prime location on Campo Road allowed the property to be sold at $1,693.06 per square foot.

Fairfield Ranch Retail Center 15463 Fairfield Ranch Road, Chino Hills, CA 91709


Major Tenants

Starbucks Drive-Thru

First Class Pizza

Fairfield Ranch Dental

COMMENTS: Fairfield Ranch Retail Center is a multi-tenant shopping center located on the corner of Central Avenue and Fairfield Ranch Road. It is a part of Fairfield Ranch Business Center, a 121,350 square-foot industrial, office, and retail community. Other notable tenants in the business center include Denny’s, Archibalds and Holiday Inn Express.

4

Recent Sales

Starbucks & Yoshinoya 9157 De Soto Avenue, Chatsworth, CA 91311


Major Tenants


Yoshinoya

COMMENTS: This property is located in Chatsworth, California. This brand new, high quality constructed property also has 10 percent rental increases every five years. The day time population is 188,000 within a three-mile radius.

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21




On Market Comparables

Starbucks and Shops, Riverside

1 Starbucks Colton

2 Main Street Shops

3 Starbucks Oxnard

4 Starbucks La Mirada

5 Cedar Broadway Plaza

On Market Comparables Map

6 Tri-City Corporate Centre

7 Packwood Creek Shopping Center

8 Tri-City Coporate Centre

9 The Shops at University Village

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Starbucks Drive-Thru & Shops (Subject Property) 3707 Arlington Avenue, Riverside, CA 92506

Status: On MarketOccupancy: 100%Year Built: 2004Gross Leasable Area (GLA): 4,878 Square Feet List Price: $2,475,000 Price/SF (GLA): $507.38CAP Rate: 5.50%Lot Size: 0.51 Acre

Major Tenants

Starbucks

Dentures by Den



EClips Hair & Nails

1 Starbucks Colton 202 East Valley Boulevard, Colton, CA 92324

Status: On Market Occupancy: 100% Year Built/Renovated: 1989/2014 Gross Leasable Area (GLA): 2,321 SF List Price: $1,788,000 Price/SF: $937.53CAP Rate: 4.25% Lot Size: 0.32 Acre

Major Tenants

Starbucks Drive Thru

COMMENTS: Subject Property is occupied by Starbucks under a new 15-year lease with no cancellations, 10 percent rent increases every five years. It is located in a prime location adjacent and visible to Interstate 10.

2 Main Street Shops 2190 Main Street, Oakley, CA 94561

Status: On MarketOccupancy: 100% Year Built/Renovated: 2007 Gross Leasable Area (GLA): 6,590 SF List Price: $3,900,000 Price/SF: $591.81CAP Rate: 5.75% Lot Size: 0.75 Acre

Major Tenants

Starbucks

Round Table Pizza

Gary’s Cigar Shop


COMMENTS: This Property has close to four years remaining on its original 10 year lease. In front of highway 4, the subject property receives an estimated daily traffic count of 55,500 cars per day. Across the street is a Raley’s-anchored retail center also featuring a Jack in the Box, Bank of the West, UPS Store and Subway.


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23




3 Starbucks Oxnard 3042 Saviers Road, Oxnard, CA 93033

Status: On Market Occupancy: 100% Year Built/Renovated: 2004Gross Leasable Area (GLA): 1,619 SF List Price: $1,788,000 Price/SF: $937.53% CAP Rate: 4.25%Lot Size: 0.39 Acre

Major Tenants


COMMENTS: The subject property is a 1,619 square foot freestanding Starbucks Drive-Thru. Starbucks is located off of Saviers Road with an appropriate traffic count of 57,000 cars daily. Nearby retailers include McDonald’s, Baskin Robbins, Center Point Mall, KFC, El Pollo Loco, Carl’s Jr., O’Reilly Auto Parts and more.

4 Starbucks La Mirada 15010 Imperial Highway, La Mirada, CA 90638

Status: On MarketOccupancy: 100% Year Built/Renovated: N/AGross Leasable Area (GLA): 2,514 SF List Price: $3,600,000 Price/SF: $1,431.98CAP Rate: 3.06% Lot Size: 0.51 Acre

Major Tenants

Starbucks

COMMENTS: Subject property is ideally situated on the northwest corner of Imperial Highway and La Mirada Boulevard in the city of La Mirada. The intersection connects two of La Mirada’s main arterial roads, and sees a combined total of 74,799 cars per day. This is a leasehold investment.

5 Cedar Broadway Plaza 380 Broadway, El Cajon, CA 92021

Status: On MarketOccupancy: 100% Year Built/Renovated: 2014Gross Leasable Area (GLA): 3,900 SF List Price: $3,078,000 Price/SF: $789.23CAP Rate: 4.95% Lot Size: 0.64 Acre

Major Tenants

Starbucks

Speedy Cash

COMMENTS: This property is newly constructed and leased to Starbucks and Speedy Cash with long term Triple Net leases. The building itself is a contemporary design with great curb appeal. Subject property sits on its own parcel on the hard corner to a Target Anchored Center (NAP).


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24


6 Tri-City Coporate Centre 745 East Hospitality Lane, San Bernardino, CA 92408


Major Tenants

Panda Express

Juice it Up!

Baja Fresh

COMMENTS: The subject property located within the Tri-City Corporate Centre; the premier master-planned, mixed-use development in the Inland Empire. The property is strategically located with access to Interstate 10 that features more than 194,000 cars per day. The in-place rents are approximately 18 percent below market rents.

7 Packwood Creek Shopping Center 4129 South Mooney Boulevard, Visalia, CA 93277


Major Tenants

Five Guys

Pacific Dental

COMMENTS: Subject property is leased to Five Guys and Pacific Dental and backed by each tenants respective corporate entity. Packwood Creek Shopping Center is anchored by Target and lies on South Mooney Boulevard, the main retail corridor. The local average household income exceeds $68,000.

8 Tri-City Corporate Centre 525 East Hospitality Lane, San Bernardino, CA 92408


Major Tenants

Supercuts

Five Guys

Togo’s

COMMENTS: The subject property located within the Tri-City Corporate Centre; the premier master-planned, mixed-use development in the Inland Empire. The property is strategically located with access to Interstate 10 featuring more than 194,000 cars per day. The in-place rents are approximately 9 percent below market rents.


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25




9 The Shops at University Village 4235 University Parkway, San Bernardino, CA 92407


Major Tenants

Yogurtland

Century 21 Town & Country

Boost Mobile

COMMENTS: The subject property is 100 percent leased to a mix of retail tenants. The Yogurtland’s sales at this location qualify it as a top 20 store out of the 350 existing stores worldwide. Strategically located along the off-ramp of Interstate 215 University Parkway exit at the gateway entrance to California State University, San Bernardino.


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26



Starbucks and Shops, Riverside

1 The Shops at Arlington

2 Shops at Riverwalk

3 University Square

4 Heritage Plaza

Rent Comparables Map

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27




Starbucks Drive-Thru & Shops (Subject Property) 3707 Arlington Avenue, Riverside, CA 92506

Status: On MarketOccupancy: 100%Year Built: 2004Gross Leasable Area (GLA): 4,878 Square Feet Price/SF (GLA): $507.38

Major Tenants

Starbucks

Dentures by Den



EClips Hair & Nails

1 The Shops at Arlington 3439 Arlington Avenue, Riverside, CA 92506

Date Surveyed: 12/17/2014 Occupancy: 54% Year Built/Renovated: Under ConstructionGross Leasable Area (GLA): 14,521 SF Rent/SF (GLA) $2.50 Available SF: 6,747 SFLot Size: 1.66 AcreLease Type: NNN

Major Tenants

COMMENTS: There are currently eight spaces available in this under construction building. The shopping ceter is anchored by LA Fitness (NAP) and 99 Cent Only (NAP.

2 Shops at Riverwalk 4294 Riverwalk Parkway, Riverside, CA 92505

Date Surveyed: 12/17/2014Occupancy: 81% Year Built/Renovated: 2008 Gross Leasable Area (GLA): 5,249 SF Rent/SF:: $2.00 Available SF: 1,002 SFLot Size: 0.87 Acre Lease Type: NNN

Major Tenants

Carl’s Jr.

Wing Stop

Quiznos

Rent Comparables

COMMENTS: This Property is part of a master-planned community that includes Class A medical and professional office space, retail and restaurants.


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3 University Square 1889 University Avenue, Riverside, CA 92507

Date Surveyed: 12/17/2014 Occupancy: 63% Year Built/Renovated: 2014Gross Leasable Area (GLA): 8,596 SF Rent/SF: $2.00 Available SF: 3,183 SF Lot Size: 0.82 AcreLease Type: NNN

Major Tenants

Lee’s Sandwiches

COMMENTS: This property features brand new (2014) construction with execellent street frontage and traffic.

4 Heritage Plaza 5130-5290 Arlington Avenue, Riverside, CA 92504

Status: 12/17/2014Occupancy: 75% Year Built/Renovated: 1980Gross Leasable Area (GLA): 119,048 SF Rent/SF: $3,600,000 Available SF: $29,676Lot Size: 10.09 Acres Lease Type: NNN

Major Tenants

Yum Yum Donuts

Starbucks

Smart & Final

Rent-A Center

COMMENTS: Conveniently located with access to the 91 Freeway, this property is a neighborhood shopping center with Starbucks, Smart & Final, Rent-A Center and many more.

Rent Comparables

overviewM A R K E T O V E R V I E W

MARKET OVERVIEW

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Riverside, California

is Riverside’s most historic landform and

site of the nation’s first outdoor inter-

denominational Easter Sunrise Service

in 1909. Overlooking the Downtown,

from this vantage point, it is obvi-

ous there are lots to see and do here.

M O U N T R U B I D O U X

is located in the University of Califor-

nia, Riverside. Escape the routine and

take a peaceful break amidst birds,

bees, blossoms and butterflies by visit-

ing the UCR Botanic Gardens, 39 acres

of flowers, trees, wood and gardens.

U C R B O TA N I C G A R D E N S

is a 73 acre, one million square-foot

master-planned business park featur-

ing 500,000 square feet of Class A of-

fice space and over 28,000 square feet

of retail. This center serves a univer-

sity, a regional hospital and numerous

high density residential communities.

THE SHOPS AT RIVERWALK

was originally built as a two-story ado-

be guesthouse in 187. The Inn has be-

come the crown jewel of Inland, South-

ern California, occupying the entire

city block. For over a century, world

leaders and hollywood stars have cho-

sen the Mission Inn Hotel and Spa.

M I S S I O N I N N H O T E L & S P A

UNIVERSITY OF CALIFORNIA - RIVERSIDE

is consistently ranked as one of the most

ethnically and economically diverse uni-

versities in the United States. To acco-

modate an enrollment of 21,000 students

by 2015, more han $730 million has been

invested in new construction projects

FOX PERFORMING ARTS CENTER

was built in 1929 and is a Spanish Colonial

Revival style building in the heart of down-

town Riverside. The theater is the center-

piece of Riverside’s Art & Culture initiative

and underwent a major renovation in 2009.

The City of Riverside is an 81.14 square-mile region in the County of Riverside, State of California. It is located approximately 10 miles southwest of

San Bernardino, 53 miles east of Los Angeles and 47 miles from the Pacific Ocean. Riverside is strategically located at the crossroads in Southern

California offering a blend of small town charm and hospitality with the vision, energy and creativity of a rapidly developing metropolitan area. The city’s

commitment to maintaining quality of life amenities is demonstrated by the variety of museums, theaters, fine dining options, array of festivals and

markets and unique shopping experiences for visitors and residents alike.

Riverside boasts strong demographics with an Average Household Income of $74,180. It is the most populous city in the entire Inland Empire and the

59th most populous city in the United States with 314,000 residents and counting. The City is projected to experience approximately seven percent

growth within the next five years.

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Starbucks Drive-thru and shops


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Location Overview

• Recently recognized by Forbes Magazine as the eighth “Coolest City” in the U.S.• Recognized by Forbes as number two in the U.S. for Milennial in Boomtown USA• Named as Most Intellegent City in the World in 2012 by the Intelligent Community

Forum• Home to the newest university medical school (UCR Med); the first medical school

to be approved west of the Mississippi in the past 30 years, enrolled its first class of 50 medical students in Fall 2013.

• Riverside, California is the home to not only the University of California, Riverside (21,000 students), but the ever growing/expanding California Baptist University, La Sierra University, Riverside Community Colleges (three campuses - Riverside, Norco, Moreno Valley).

Recent Awards & City Recognition:

MARKET OVERVIEW

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Riverside-San Bernardino

Market Highlights

Dynamic Industrial Market

The metro currently leads the nation in sales, construction, and absorption of

industrial property.

Strong Demographic Trends

The Inland Empire is expected to add nearly 350,000 new residents through

2018.

Growing Distribution Market

Many Fortune 500 companies have recently opened massive distribution

centers in the area.

GeographyThe Riverside-San Bernardino metro, also referred to as the Inland Empire,

is a 28,000-square-mile region in Southern California comprised of San

Bernardino and Riverside counties. Valleys in the southwestern portion of

the region, adjacent to Los Angeles, Orange County and San Diego County,

are the most populous in the metro. These areas abut the San Bernardino

and San Jacinto mountains, behind which lies the high desert area of

Victorville/Barstow to the north and, to the east, the low desert Coachella

Valley, home of Palm Springs.

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Starbucks Drive-thru and shops


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Demographic Summary

Starbucks and Shops

Riverside, CA

Income 1-Mile 5-Miles 10-Miles$ 0 - $ 14,999 10.1% 11.0% 11.6%$ 15,000 - $24,999 13.2% 10.7% 10.9%$ 25,000 - $34,999 9.9% 10.0% 10.4%$ 35,000 - $49,999 17.8% 15.2% 14.7%$ 50,000 - $74,999 20.8% 19.5% 20.1%$ 75,000 - $99,999 13.1% 13.3% 12.6%$100,000 - $124,999 8.6% 8.3% 8.2%$125,000 - $149,999 2.2% 3.8% 4.0%$150,000 - $200,000 2.0% 4.0% 4.0%$200,000 to $249,999 1.2% 1.8% 1.6%$250,000 + 1.2% 2.6% 2.0%2013 Median HH Income $49,067 $53,932 $52,8462013 Per Capita Income $20,673 $24,424 $22,1992013 Average HH Income $62,847 $75,136 $71,775

Population 1-Mile 5-Miles 10-Miles2000 Population 13,965 95,700 243,3062010 Population 14,946 103,950 275,5102013 Population 15,494 108,038 286,5952018 Population 15,701 108,946 291,695

Households 1-Mile 5-Miles 10-Miles2000 Households 4,687 32,010 77,7962010 Households 4,814 32,909 82,3002013 Households 5,005 34,285 85,7742018 Households 5,128 35,057 88,7042013 Average Household Size 2.89 3.04 3.192013 Daytime Population 12,001 51,376 105,0242000 Median Housing Value $134,495 $133,908 $136,1182000 Owner Occupied Housing Units 56.41% 57.34% 53.91%2000 Renter Occupied Housing Units 38.99% 38.90% 41.20%2000 Vacant 4.08% 4.36% 4.70%2013 Owner Occupied Housing Units 52.90% 57.28% 53.38%2013 Renter Occupied Housing Units 47.10% 42.72% 46.62%2013 Vacant 3.06% 2.74% 3.33%2018 Owner Occupied Housing Units 52.33% 57.17% 53.32%2018 Renter Occupied Housing Units 47.67% 42.83% 46.68%2018 Vacant 2.86% 2.56% 3.19%

MARKET OVERVIEW

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Demographic Summary

PopulationIn 2013, the population in your selected geography was 286,595. The population has changed by 17.79% since 2000. It is estimated that the population in your area will

the population in your area is 30.6, compare this to the U.S. average which is 37. The population density in your area is 3,603.38 people per square mile.

Households There are currently 85,774 households in your selected geography. The number of households has changed by 10.68% since 2000. It is estimated that the number of

persons.

Income In 2013, the median household income for your selected geography is $52,846, compare this to the U.S. average which is currently $53,535. The median household

represents a change of 13.57% from the current year. The current year per capita income in your area is $22,199, compare this to the U.S. average, which is $28,888. The

current year average household income in your area is $71,775, compare this to the U.S. average which is $75,373.

Race and Ethnicity

are counted independently of race. People of Hispanic origin make up 53.84% of the current year population in your selected area. Compare this to the U.S. average of

16.55%.

Housing The median housing value in your area was $136,118 in 2000, compare this to the U.S. average of $110,781 for the same year. In 2000, there were 43,845 owner occupied

housing units in your area and there were 33,502 renter occupied housing units in your area. The median rent at the time was $589.

Employment In 2013, there are 105,024 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 56.3% of employees are

employed in white-collar occupations in this geography, and 43.6% are employed in blue-collar occupations. In 2013, unemployment in this area is 6.11%. In 2000, the

median time traveled to work was 22.4 minutes.

Geography: 5 Miles

Demographic data © 2010 by Experian/Applied Geographic Solutions.


OFFICES NATIONWIDE

www.marcusmillichap.com


exclusively listedExclusively listed by:Exclusively listed by:E l i l li t d b

Richard Vincent National Retail Group

ONTARIO OFFICE

Tel: (909) 456-3491

Fax: (909) 456-3410

[email protected]

License: CA 01930526

Pablo RodriguezNational Retail Group

ONTARIO OFFICE

Tel: (909) 456-7032

Fax: (909) 456-3410

[email protected]

Licenses: CA 01870757

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