2680 JENSEN AVENUE SANGER, CALIFORNIA 93657 - Prepared For: Yavitz Company - Midtown ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Prepared For: Yavitz Company
2680 JENSEN AVENUE
SANGER, CALIFORNIA 93657
PREPARED FOR:
Yavitz Company
PREPARED BY:
Alex Kozakov Patrick Wade Lucy Gan
First Vice President First Vice President Associate
+1 213 613 3031 +1 213 613 3071 +1 213 613 3566
Lic. 01416489 Lic. 01454690 Lic. 01979053
alex.kozakov@cbre.com patrick.wade@cbre.com lucy.gan@cbre.com
Disclaimer
This valuation analysis or broker opinion of value is not an appraisal and has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice. Neither you, nor any third
parties, may rely on this analysis for any tax purposes, estate work, litigation, lending or any other matter other than your direct use in connection with a contemplated transaction.
2
TABLE OF CONTENTS
Pro p er ty Summa r y. . . . . . . . . . . . . . . . . . . . . . . . . .
Sa les C o mp a ra b les. . . . . . . . . . . . . . . . . . . . . . . . .
D emo gra p hics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tea m O v er v iew. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ma rk eting Stra tegy .. . . . . . . . . . . . . . . . . . . . . . . .
3
4
PROPERTY SUMMARY
Address: 2680 Jensen Ave | Sanger, CA
Building Size (SF): 18,900 SF
Land Area (SF): 71,438 SF
Year Built / Renovated: 1976/2012
Current NOI: $166,486
APN: 315-021-24
Traffic Counts: 24,830 CPD
PROPERTY STRENGTHS
»» Best intersection in Sanger for retailers »» Ideal demographics in the immediate area for the
value oriented tenant
»» National Tenants at the intersection includes
Walgreen, Dollar Tree, Panda Express, Kragen Auto »» 99 Cents Only has a strong brand name
Parts, Payless Shoes, El Pollo Loco
»» Absolute NNN lease with zero landlord responsibility
»» Across street from Wal-Mart - 176,000sf
»» 9 years left on the primary lease term
»» Only Wal-Mart Supercenter within 6 miles
PROPERTY CONSIDERATIONS
»» Small trade area with limited population growth
»» Poor accessibility to freeway
»» Dollar Tree is located in the same center
»» Minimal increases during the term of the lease
5
6
SALE COMPARABLES
Property Address City Land Sq Ft
99 Cents
2680 Jensen Ave Sanger 18,900
Only Store
Land Sq Land $/ Building Building $/
Tenant Address City CAP Sale Price Sale Date Notes
Ft Sq Ft SF SF
Family Dollar 720 5th Street Lincoln 7.00% $1,500,000 22,285 $67.31 9,480 $158.23 3/19/15 Buit 2012
Family Dollar 16044 Avenue 328 Ivanhoe 5.80% $1,655,000 43,560 $37.99 8,431 $196.30 1/30/15 Buit 2012
Family Dollar 1108 E Bardsley Ave Tulare 5.75% $2,104,358 N/A N/A 8,415 $250.07 12/15/14 Buit 2012
Family Dollar 163 Central Valley Hwy Shafter 5.76% $1,840,000 31,015 $59.33 8,045 $228.71 3/31/15 Buit 2012
Family Dollar 2006 E Mariposa Road Stockton 5.80% $2,935,000 89,298 $32.87 9,180 $319.72 1/22/15 Built 2014
Family Dollar 1928 W Olive Ave Fresno 6.75% $2,565,500 43,699 $58.71 8,320 $308.35 4/9/15 Built 2014
Moreno Built 2013, sale
Family Dollar 15075 Perris Blvd 5.75% $2,156,500 297,515 $7.25 8,399 $256.76 11/18/14
Valley leaseback
Built 2012, sale
Family Dollar 1481 W Ramsey St Banning 5.80% $2,189,655 37,222 $58.83 8,399 $260.70 11/20/14
leaseback
Built 2013, sale
Family Dollar 677 S Riverside Ave Rialto 5.75% $2,139,000 39,640 $53.96 8,361 $255.83 12/9/14
leaseback
Family Dollar 1715 Yosemite Pky Merced 5.80% $2,714,500 45,302 $59.92 9,180 $295.70 12/19/14 Built 2015
7
SALE COMPARABLES- CONTINUED
Property Address City Land Sq Ft
99 Cents
2680 Jensen Ave Sanger 18,900
Only Store
Land Sq Land $/ Building Building $/
Tenant Address City CAP Sale Price Sale Date Notes
Ft Sq Ft SF SF
Grocery Outlet 3110 Main Street Oakley 5.87% $5,000,000 285,884 $17.49 17,000 $294.12 6/12/15 Built 1952
Fresh & Easy 11200 Brimhall Road Bakersfield 6.00% $2,140,000 60,548 $35.34 14,000 $152.86 8/7/15 Built 2009
DDS 1640 E Hatch Road San Bernardino 6.00% $5,201,613 109,771 $47.39 25,800 $201.61 12/11/14 Built 1985
99 Cents Only 1304 Hwy 46 Wasco 6.25% $2,232,800 80,150 $27.86 13,969 $159.84 1/13/15 Built 1964
Auto Zone 566 Inland Center Dr San Bernardino 5.75% $2,275,000 28,880 $78.77 10,500 $216.67 6/30/15
Dollar Tree 1260 E Main Street Barstow 7.20% $1,090,000 41,251 $26.42 9,900 $110.10 For Sale Built 1964
Dollar General 258 Bernard Street Bakersfield 7.00% $4,689,286 98,101 $47.80 18,827 $249.07 For Sale Built 1946
Built 1955,
Family Dollar 2151 S Chester Ave Bakersfield 6.50% $1,456,371 39,391 $36.97 11,445 $127.25 For Sale
Renov 2012
Average 6.14% $2,889,229 $79,928 $36.15 $11,931 $242.16
8
9
LEASE ABSTRACT
Property: 2680 Jensen Ave | Sanger, CA
Tenant: 99 Cents Only
RENT SCHEDULE
Guarantor: 99 Cents Only, Inc. YEARS NOI % INCREASE
Lease Type: NNN Year 1 - 2 160,083 -
Commencement Date: September 20, 2012 Year 3 - 7 166,486 4.0%
Expiration Date: September 20, 2024 Year 8 - 12 173,146 4.0%
Lease Term Remaining: 9 Years Option 1 190,460 10.0%
Renewal Options: 4-5 Year Options Option 2 209,506 10.0%
Current Rent: $166,486 Option 3 230,457 10.0%
Tenant Responsibilities: Property taxes, Utilties, Insurance, CAM Option 4 253,503 10.0%
Landlord Responsibilities: -
ROFR: Yes, tenant has ROFR
10PRICING ANALYSIS
LIST PRICE RENT GLA YEAR BUILT
$2,774,767 $166,486 18,900 SF 1976
Expected Pricing Range
Pricing Range List Price Range
Price $2,774,767 $2,774,767 $2,621,827
Price / SF $146.81 $146.81 $138.72
Price / SF Land $38.84 $38.84 $36.70
Cap Rate 6.00% 6.00% 6.35%
1112
TENANT OVERVIEW
99 Cents Only Stores is a price-point
retailer chain based in Commerce,
California. Founded by David Gold in
February 28, 1969, most of the stores
are located in Southern California, with
others in Rhode Island, Nevada, Arizona,
and Massachusetts. The company also
operates Bargain Wholesale, which sells
wholesale to retailers across the United States and exports to more than
15 countries from showrooms in Los Angeles and Houston.
From the first store opening in 1982, 99 Cents Only Stores has expanded
to more than 350 extreme value retail stores in California, Texas,
Arizona, and Nevada. Over the years, the Company grew with new
stores in California, and after the Company went public in 1996, 99
Cents Only Stores began opening locations in new markets including
Arizona, Nevada and Texas.
2012 marked a turning point for the Company when it celebrated its
30th anniversary and
decided to go private 99 CENTS ONLY QUICK FACTS
by partnering with Ares Type: Private
Management and the Industry Discount, variety store
Canadian Pension Plan Founded 1969
Investment Board. This
Founder Dave Gold
partnership has been
instrumental in the Headquarters Commerce, California, USA
company’s continued Number of Locations 389
expansion, both in the Website www.99only.com
number of new stores
and new markets.
13AREA OVERVIEW Sanger Sanger is a city in Fresno County, California, United States. Sanger is located 13 miles (21 km) east-southeast of Fresno,[9] at an elevation of 371 feet (113 m). According to the United States Census Bureau, the city has a total area of 5.5 square miles (14 km2), all of it land. Sanger Unified School District is made up of twenty-one schools. There are fourteen elementary sites, a middle school and one comprehensive high school. There are two K-8 and one K-12 charter sites. In addition there is an alternative education continuation school, an alternative education independent study school, a community day school, and an adult school. The district covers 180 square miles and serves a population of 31,000. Within the boundaries of Sanger Unified is the city of Sanger and the communities of Centerville, Del Rey, Fairmont, Lone Star, Tivy Valley and portions of the Sunnyside area of metropolitan Fresno. Attendance in the District’s schools currently numbers 11,360 students. 14
Demographics
ON E - M I L E R AD I U S TH R E E - MILE RADIU S FIVE- MILE RADIU S
2 0 1 5 ESTI M ATED PO PULAT I O N 12,175 28,284 34,845
2 0 2 0 P R O JECT ED PO PULAT I O N 12,982 29,645 36,687
POPUL ATIO N
2 0 1 0 CENSUS PO PULAT I O N 11,363 27,025 33,082
2 0 0 0 CENSUS PO PULAT I O N 8,207 21,815 26,473
G R O W T H 20 1 0 -2 0 1 5 7.15% 4.66% 5.33%
G R O W T H 20 1 5 -2 0 2 0 6.63% 4.81% 5.29%
2 0 1 5 ESTI M ATED M ED I A N A GE 31.48 30.30 30.91
2 0 1 5 ESTI M ATED AVER A GE A GE 34.41 33.44 34.01
2 0 1 5 ESTI M ATED HO US EHO LD S 3,642 7,741 9,661
2 0 2 0 P R O JECT ED HO US EHO LD S 3,863 8,099 10,145
H OUSEH OL DS
2 0 1 0 CENSUS HO US EHO LD S 3,459 7,478 9,273
2 0 0 0 CENSUS HO US EHO LD S 2,627 6,097 7,554
G R O W T H 20 1 0 -2 0 1 5 5.30% 3.52% 4.18%
G R O W T H 20 1 5 -2 0 2 0 6.05% 4.62% 5.01%
2 0 1 5 EST. AVER A GE HO US EHO LD S I Z E 3.32 3.63 3.59
2 0 1 5 EST. AVER A GE HO US EHO LD I N CO M E $58,010 $54,338 $58,402
I NCOM E
2 0 2 0 P R J. AVER A GE HO US EHO LD I N CO M E $58,408 $54,904 $58,796
2 0 1 5 EST. MED I A N HO US EHO LD I N CO M E $44,643 $39,676 $42,571
W HI T E P O P ULAT I O N 62.38% 59.96% 59.07%
A FR I CA N A M ERI CA N PO PULAT I O N 1.43% 1.11% 1.05%
R AC E & O RIG IN
A SI A N P O P ULAT I O N 4.74% 4.28% 5.80%
PA CI FI C I SLA ND ER 0.18% 0.20% 0.19%
A M ER I CA N I NDI A N / A LA S KA N AT I VE 1.39% 1.36% 1.30%
O T HER R A CE P O PULAT I O N 26.03% 29.56% 29.17%
T W O O R MO R E R A CES PO PULAT I O N 3.85% 3.52% 3.44%
15OUR TEAM
Our team focuses exclusively on the sale of retail investment properties. Our commitment is to provide our clients with world-class
service, flawless execution, local expertise and global exposure for every assignment.
ALEX KOZAKOV
FIRST VICE PRESIDENT
Alex Kozakov is a First Vice President with CBRE’s Investment Properties Group and co-leads a retail investment sales team based in
Downtown Los Angeles. The team focuses exclusively on the sale of multi-tenant retail properties in California, and single tenant net-lease
properties nationally. By incorporating a systematic, proactive marketing approach, they create seamless transactions for their clients.
The team has negotiated nearly a billion dollars of retail investment transactions in more than 25 states, with most sales occuring in
Southern CA. Alex has achieved numerous sales and recognition awards throughout his career, and he is a member of the Los Angeles
Next Generation ICSC Committee, International Council of Shopping Centers (ICSC) and Urban Land Institute. He is involved in several
philanthropic organizations and served on the boarch of the Foundation for Camp Max Strauss and Jewish Big Brothers Big Sisters Los
Angeles. Alex graduated from the University of Arizona.
PATRICK WADE
FIRST VICE PRESIDENT
Patrick Wade co-leads an investment sales team based in CBRE’s Downtown Los Angeles office as a First Vice President. Patrick has
completed over 175 retail transactions throughout Southern California and the West Coast, totaling more than $500 million in property
value. To complement his investment practice, he has extensive experience in 1031 tax-deferred exchanges, and he leverages this
knowledge to provide clients with strategic solutions. He graduated from the University of Southern California with his bachelor’s degree
in Business Administration and is currently a member in the USC Business School CAP program, a member of the USC Trojan Real Estate
Association, the International Council of Shopping Centers (ICSC), and he is the Sponsorship Committee Chair of Urban Land Institute -
Young Leaders Group in Los Angeles.
LUCY GAN
ASSOCIATE
Lucy Gan is an experienced real estate professional who has worked with some of the largest national retail tenants in the shopping
center industry (Panda Express, Yogurtland, and 99 Cents Only). She has negotiated over 50 leases and purchase contracts with a
transaction value exceeding $52 million. She is a skilled and capable deal maker who possesses a thorough knowledge of the California
real estate market. At CBRE, she is part of a preeminent retail investment sales team who focuses on the acquisition and disposition of
multi-tenant retail properties in California and single tenant net leases properties nationally. Lucy has a MBA from the Anderson school
from UCLA and is fluent in Mandarin Chinese.
16MAXX COHEN
ASSOCIATE
Maxx Cohen is an Associate with CBRE’s Investment Properties Group. Alongside retail experts Alex Kozakov and Patrick Wade, Maxx
focuses on landlord representation and advisory services for grocery-anchored shopping centers and single-tenant net leased properties
in the greater Los Angeles area. Maxx began his career as part of CBRE’s “Wheel Program,” where he gained valuable experience in
a diverse range of industry practices, including leasing, appraisal and sales. He graduated magna cum laude from the University of
Southern California with a bachelor’s degree in Policy, Planning and Development and is a member of the Jewish Federation of Greater
Los Angeles’ Real Estate Construction Division.
ERIC ROY
ASSOCIATE
Eric Roy focuses on new business development by seeking out new opportunities and expanding the team’s network. In addition, he
serves existing clients by fielding concerns and providing diligent customer service. Eric’s ultimate goal is to strengthen the team’s platform
by focusing on national NNN properties and shopping centers. Eric’s research, capabilities, and innovative marketing efforts help to
initiate and strengthen client relationships. Combined with his degree in economics, Eric brings multidisciplinary expertise to his projects
at CBRE.
JIMMY CHANG
ASSOCIATE
Jimmy Chang focuses on new business development in multi- and single-tenant retail properties, expanding CBRE’s footprint in the
San Gabriel Valley region of Los Angeles. Given his entrepreneurial background, Jimmy has developed a client-centric approach
to developing relationships. His experience in market research and financial analysis allows him to provide a unique perspective to
improving property operations. He graduated from the University of California, Irvine with a bachelor’s degree in business economics
and a minor in drama. He is also fluent in Mandardin.
17MARKETING OVERVIEW
SIGNIFICANT SINGLE TENANT RETAIL EXPERIENCE ACROSS THE COUNTRY
COMPLETED TRANSACTIONS IN 33 STATES
WA
MT ND
MN MA
OR
WI NY
ID CT
MI
PA
OH
NV ID MD
UT IL
CO
CA KS MO
TN
SC
AZ OK
NM
MS AL GA
TX
LA
FL
OVER $1 BILLION SOLD AND 200 CLOSED TRANSACTIONS
18RETAIL SERVICES CBRE’s capabilities extend broader and deeper
THE AMERICAS
than any other real estate services provider, offering
unparalleled tools and resources, leverage, credibility,
MARKETING STRATEGY
B U S I N E S S A C T I V I T Y 2 013 market coverage and local expertise.
#1 Retail Platform in Real Estate Detailed Weekly Strategy Tracking & Accountability
The overriding goal for the Kozakov-Wade Investment Group and CBRE on the sale of the Coffee Bean & Tea Leaf in Torrance will be to maximize value
for TradeCor, LLC and its principals through the successful disposition of the property. Our approach includes hands-on management throughout our
marketing, buyer selection, and escrow execution processes. These proven processes will maximize exposure to targeted investors and ensure that the
most qualified buyer is selected. Below we have outlined our proposed project timeline.
TRANSACTIONS
Marketing Timeline
SALES LEASING WEEK 1-2 WEEK 1-8 WEEK 1-8 10-14 DAYS 5-8 DAYS 15-30 DAYS
PRELIMINARY MARKETING MARKETING PROCESS MARKETING PROCESS MANAGED BID PROCESS CONTRACT BUYER'S DUE DILIGENCE
• Meet with team to discuss deal • Aggressive Calling Campaign to • E-blast property highlights to Active • Team confidentiality • Modify seller's prepared • Overall property review including:
points and set plan for marketing High Probability Investors from 4+ CBRE Retal Agents: 1,300+ agents • Collect initial offers purchase & sale agreement with
exeuction. Review all previously • Title & survey
1,375 $10.0B 7,525 $6.8B sold assets with similar parameters
Team Members who specialize in retail sales
• Evaluate offers
buyers best & final comments
• Email Proprietary 1031 • Call target list from similar • Zoning & city compliance
and identify immediate prospects. • Open escrow upon delivery of
Accommodator Database of 180 transactions over past 5 years (both • Distribution of due diligence
Transactions Value Transactions Value • Call Contact list of Coffee Bean West Coast 1031-Exchange brokers and principals involved in materials
contract & deposit • Environmental
owners in California. Contact Accommodators single tenant retail transactions • Force significant non-refundable • Structural
• Best & final bid deposit
owners who have purchase similar • E-Blast to Approximately 11,000 • Present in El Segundo, Beverly CLOSING PROCESS
properties within the last year California Investors & Brokers Hills, & Downtown LA CBRE • Buyer interviews • Coordinate transfer of funds &
• E-blast to our proprietary investor • Advertise Property on our website, Offices - Presentations with Property • Counter best & final offers prorations
database - approximately 4,400 Loopnet, and Costar Highlights (over 100 active agents - • Close of escrow
unique emails each with own investor clientele)
Minimize Seller Risk.
Target Active High Probability Manage Bid Process Effectively Seller controls terms of
Actively Pursue Buyers Maximize Value Successful transition to new
transaction
$16.8B
Buyers ownership
INITIAL OFFERS SELECT A BUYER BUYER IS NON-REFUNDABLE CLOSE OF ESCROW
1 2
3 4 5 6 7 8
TOTAL TRANSACTION VALUE 9 10 11
11 12 13
12 13 14 15
16 17 18 19
(MONTH) (MONTH) (MONTH) (MONTH) (MONTH)
Property & Valuation &
Loan
Corp Facilities Advisory
Originations b
Managed a Assignments
0.4B SF $1.9B 9,900
a. includes commercial property managed by affiliate offices
Why Hire Us?
b. includes loan sale advisory
WA
ND
MN
OR
MI
Sacramento
CA
San Francisco OH
San Jose NV IL
UT
CO
Fresno KS MO
TN
Bakersfield
OK SC
AZ
GLOBAL INVESTOR REACH
NM
GA
MS AL
NNN presence in 26 states Los Angeles
TX
AUSTRALIA • AUSTRIA • BAHAMAS • BELGIUM • BRAZIL • CANADA • CHINA • DENMARK • DOMINICAN
REPUBLIC • ECUADOR • FIJI • FRANCE • FRENCH POLYNESIA • GERMANY • GREECE • HONG KONG • INDIA and significant retail
Single Tenant
• IRELAND • ISRAEL • ITALY • JAMAICA • JAPAN • KOREA • MEXICO • NETHERLANDS • NEW ZEALAND • transaction experience in Strip Centers/ Shopping Centers
NORWAY • PANAMA • PHILIPPINES • PORTUGAL • PUERTO RICO • SERBIA & MONTENEGRO • SOUTH AFRICA
• SPAIN • SWITZERLAND • TAIWAN • THAILAND • TURKEY • UNITED KINGDOM • UNITED STATES • VIETNAM California. Land Redevelopment
Mixed-Use/ High Street Retail
A Team Built for Results Constant Communication Quantifiable Results
“
8.71 98.3%
The challenges
•
AVERAGE NUMBER OF AVERAGE % OF LIST
we’ve encountered
COMPETING OFFERS ON DEALS TO SALES PRICE
LISTED IN THE LAST 24 MONTHS
thus far have been...
•
42
•
We’ve overcome “
these objections
•
64,770 by...
QUALIFIED INVESTORS COUNTRIES
OPTING INTO OUR EMAILS DOWNLOADING
OUR LISTINGS
19NET LEASE
PROPERTY GROUP
2,844
PROPERTIES SOLD
CBRE
Eastdil Secured
All Others CBRE
25.55% 25.38% Cushman & Wakefield
Marcus & Millichap
Colliers International
HFF
1.63%
2.68%
Eastdil
JLL
Grubb & Ellis
$48 B
10.30% IN TOTAL VOLUME
2.71%
Stan Johnson Co
JLL
4.62% Cassidy Turley
HFF Cushman All Others
4.76% 9.74%
Colliers
5.63% M&M
7.01%
25%
WE KNOW THE SINGLE TENANT NET LEASE MARKET. MARKET SHARE
20MARKETING TIMELINE
14 DAYS 40 DAYS 10-14 DAYS 5 DAYS 21-30 DAYS 15-30 DAYS
DISCOVERY & PRELIMINARY MARKETING PROCESS INITIAL OFFERS CONTRACT BUYER'S DUE DILIGENCE CLOSING PROCESS
MARKETING BEST & FINAL
• Kickoff meeting • Distribute executive summary & • Team confidentiality
• Modify seller's prepared • Overall property review • Coordinate transfer of funds
• Thorough property due diligence confidentiality agreements • Collect initial offers purchase & sale agreement including: & prorations
• Broad based mass exposure with buyers best & final
• Detailed underwriting & • Evaluate offers • Title & survey • Close of escrow
to national & international comments
evaluation
investors • Distribution of due diligence • Zoning & city compliance
• Open escrow upon delivery
• Speculative physical due • Manage buyer communication materials
of contract & deposit • Environmental
diligence (ALTA, structural &
• Distribute comprehensive • Best & final bid
environmental) • Force significant non- • Structural
marketing package & ARGUS • Buyer interviews refundable deposit
• Announcement letter & email • Continued discussion with buyers
• Counter best & final offers
• Set up weekly conference calls • Create competitive environment
& marketing updates with client • Conduct property tours
Creates competitive Successful transition to
Reduce buyer's due diligence Maximize Value Seller controls terms of Minimize seller's risk
environment/limits buyer new ownership
& potential for retrade transaction
contingencies
I N I TI AL OFFE RS S E LE C T A BUY E R BUY E R I S NO N-R EF U ND AB L E CL O SE OF ESCR OW
1 2
3 4 5 6 7 8
9 10 11
11 12 13
12 13 14 15
16 17 18 19
(MONTH) (MONTH) (MONTH) (MONTH) (MONTH)
21CBRE MARKETING PROCESS
With respect to the contemplated disposition of 2680 ANNOUNCEMENT FLYER
Jensen Avenue, Sanger California. and we recommend a
The marketing flyer will contain a summary of the opportunity, an asset profile,
controlled bid process with a broad marketing approach.
key investment and location highlights, and professional property photography.
We are finding that the broad approach yields better results
in today’s environment for properties with investment profiles
similar to this property. We will distribute the offerings to our
team’s proprietary nationally populated database with more CAMPAIGNLOGIC
than 120,000 investors and 35,000 agents. The goal of
A proprietary, web-based marketing tool that allows the creation,
this approach is to maximize the offering’s exposure to the
distribution and sophisticated tracking of email marketing campaigns
investment sales market, thereby capturing the largest pool of
prospective investors.
The underwriting and marketing process is broken into five
phases: Underwriting and Analysis, Campaign Development,
Marketing, Negotiation, and Closing.
CBRE MARKETPLACE
PHASE 1 | UNDERWRITING AND ANALYSIS A dedicated website will allow investors to view the offering.
This team provides unparalleled underwriting support to
every transaction. In addition to team members’ decades of
underwriting experience, our proprietary database contains
rent, occupancy and sale information that can be sorted
and manipulated in a myriad of ways to empirically support
values to investors, lenders and appraisers.
PHASE 2 | CAMPAIGN DEVELOPMENT
Our marketing plan includes the development of electronic,
as well as hard copy, marketing materials by professional
graphic designers. The result is an appealing, highly polished
OFFERING MEMORANDUM
collection of marketing collaterals that sets the stage for the
offering. We leverage the CBRE technology platforms by A detailed overview and analysis of the
creating materials for both electronic and print media. investment opportunity, providing concise yet
substantial information for potential buyers.
Due to the sensitive nature of the information,
investors are required to sign a confidentiality
agreement prior to receiving the package.
22PHASE 3 | MARKETING PHASE 5 | CLOSING
After we create the necessary materials to launch a multi-channel marketing This final phase is detail heavy and relies on the strength of our platform, initial
campaign, we set the streamlined process in motion in order to create a due diligence and experience. During the closing process, we will:
competitive environment. This phase in the process includes:
• Facilitate the buyer’s due diligence, including review of title and survey,
• Market internally to more than 500 CBRE investment brokers around the zoning, physical inspection and market reviews
country • Facilitate buyer’s conventional financing requirements
• Launch initial announcement blast through CampaignLogic • Address any issues necessary for closing
• Email blasts and/or mailed announcement flyer • Close escrow
• Accept inquiries and answer questions from prospective buyers • Successfully transition to new ownership
• Court qualified investors and distribute Offering Memorandum
• Conduct buyer site tours
• Receive first round of offers
PHASE 4 | NEGOTIATIONS
Our team will implement a fair, confidential negotiation process that includes:
• Evaluating offers with our client
• Sending out “best and final” letters to the top buyer prospects along with
due diligence materials
• Receiving best and final bids
• Conducting buyer interviews
• Buyer selection
• Executing agreements necessary to contract sale
• Opening escrow upon delivery of contract and deposit
23PROPERTY SALES
INVESTMENT PROPERTIES
CBRE Investment Properties offers customized investment sales, acquisition and »» Worldwide leader, consistently and independently, ranked as the #1 investment
recapitalization services, together with industry leading market intelligence, sales representative in the United States
to provide unmatched exposure to buyers across the country. By utilizing
market research, a seamless execution process and in-depth relationships, our »» Leading acquisition and disposition services of income producing properties
professionals can anticipate trends and command capital globally. These unique
benefits validate CBRE as the safest and best choice for results in the global »» Unparalleled access to domestic and foreign institutional and private investors
investment property capital market. Investment Properties services include:
• Acquisitions and dispositions
• Consulting INV E S T M E NT P RO P E RT IE S B ROK ER RA NK I NGS | FU LL YEA R 2014
• Equity placement All Core and Hotels
• Market research $65.0
• Portfolio planning $60.0 $63.9B
$61.0B
• Property marketing $55.0
• Due diligence support $50.0
• Valuations $45.0
Comprised of more than 400 dedicated sales professionals located in over 50 $40.0
markets across the United States, CBRE Investment Properties is the world leader
$35.0
$ Billions
in the acquisition and disposition of income-producing properties for third-party
owners and corporate occupiers, with clients that include: $30.0
• Domestic and foreign-based real estate investors $25.0 $25.8B
• Opportunity funds $20.0
• Owner/developers $18.7B $18.3B
$15.0 $15.3B
• REITs $10.0
• Entities with tax-sensitive exit strategies $8.1B
$5.0 $7.8B
The extensive market knowledge and transaction expertise applied by $0.0
Investment Properties, both to the middle and private capital markets,
Eastdil HFF JLL Cushman & Marcus & Colliers Cassidy
maximizes value for our clients and strengthens our role as the world leader Secured Wakefield Millichap Turley
in real estate investments.
Source: Real Capital Analytics
24CBRE CORPORATE OVERVIEW
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in
terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 372 offices
(excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage
banking; appraisal and valuation; development services; investment management; and research and consulting. Whether it is a local, national or global assignment, CBRE applies
insight, experience, intelligence and resources to help clients make informed real estate decisions. The many strengths that CBRE brings to each transaction include:
• An intimate knowledge of virtually every major market in the world • A proven track record of meeting diverse client needs
• Intellectual capital and technological resources that develop and deliver superior • Leadership positions in all service lines
analytical, research and client service tools to its professionals
• An organizational structure that harnesses the firm’s collective expertise
2014 GLOBAL BROKERAGE RANKINGS ALL PROPERTY TYPES*
$120.0
$100.0 $96.2
$80.0
$78.2
$60.0 $61.5
$ Billions
$40.0
$20.0 $28.9 $28.8
$0.0
Jones Lang Eastdil Savills Cushman &
LaSalle Secured Wakefield
CORPORATE LOCATIONS A FFILIATE LOCATIONS
Source: Real Capital Analytics. *Based on independent reports of properties and portfolios $10 million and greater.
Corporate Locations
Affiliate Locations
25Capital Markets | Investment Properties Alex Kozakov First Vice President +1 213 613 3031 Patrick Wade First Vice President +1 213 613 3071 Lucy Gan Associate +1 213 613 3566 CBRE © 2013 All Rights Reserved. All information included in this proposal pertaining to CBRE including but not limited to its operations, employees, technology and clients are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior written consent of CBRE. This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”), engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management, and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammel Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. 26
You can also read
