8820 S. SEPULVEDA BLVD. WESTCHESTER, CA 90045 - 100% TRIPLE NET LEASED INVESTMENT - LoopNet
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OFFERING MEMORANDUM | LISTED AT $25,000,000
8820 S. SEPULVEDA BLVD.
WESTCHESTER, CA 90045
100% TRIPLE NET LEASED INVESTMENT
TROPHY IRREPLACEABLE LOCATION
1
This Memorandum (“Offering Memorandum”) has been prepared
by Hudson Partners, Inc. and BRC Advisors, Inc. based on
TABLE OF CONTENTS
information that was furnished to us by sources we deem to be
reliable. No warranty or representation is made to the accuracy SECTION ONE 05
thereof; subject to correction of errors, omissions, change of
EXECUTIVE PROFILE
price, prior sale, or withdrawal from market without notice.
This Memorandum is being delivered to a limited number of SECTION TWO 19
parties who may be interested in and capable of purchasing the PROPERTY INFORMATION
Property. By its acceptance hereof, each recipient agrees that it
will not copy, reproduce or distribute to others this Memorandum
in whole or in part, at any time, without the prior written consent
of Hudson Partners, Inc. and BRC Advisors, Inc., and it will keep
permanently confidential all information contained herein not
already public and will use this Confidential Memorandum only
for the purpose of evaluating the possible acquisition of the
Property.
This Memorandum does not purport to provide a complete or
fully accurate summary of the Property or any of the documents
related thereto, nor does it purport to be all-inclusive or to
contain all of the information, which prospective buyers
may need, or desire. All financial projections are based on
assumptions relating to the general economy, competition and
other factors beyond the control of the Owner and, therefore,
are subject to material variation. This Memorandum does not
constitute an indication that there has been no change in the
business or affairs of the Property or the Owner since the date of © 2017 Hudson Partners, Inc. & BRC Advisors. The information contained
preparation of this Memorandum. in this document has been obtained from sources believed reliable. While
Hudson Partners, Inc. & BRC Advisors does not doubt its accuracy, Hudson
Partners, Inc. & BRC Advisors has not verified it and makes no guarantee,
This Memorandum is being delivered by Hudson Partners Inc. warranty or representation about it. It is your responsibility to independently
confirm its accuracy and completeness. Any projections, opinions,
and BRC Advisors, Inc., to prospective purchasers with the assumptions or estimates used are for example only and do not represent the
understanding that all prospective purchasers will conduct their current or future performance of the property. The value of this transaction to
you depends on tax and other factors, which should be evaluated by your tax,
own independent investigation of those matters, which they financial and legal advisors. You and your advisors should conduct a careful,
independent investigation of the property to determine to your satisfaction
deem appropriate in order to evaluate this offering. Additional the suitability of the property for your needs.
information and an opportunity to inspect the site will be made
Hudson Partners, Inc. & BRC Advisors and the Hudson Partners, Inc. & BRC
available to interested and qualified prospective purchasers. Advisors logos are service marks of Hudson Partners, Inc. & BRC Advisors
Hudson Partners, Inc. and BRC Advisors, Inc., reserves the right and/or its affiliated or related companies in the United States and other
countries. All other marks displayed on this document are the property of
to request the return of any or all of the information enclosed. their respective owners.
2 3
5
SECTION 1 | EXECUTIVE OVERVIEW
4
INVESTMENT OVERVIEW PROPERTY INFORMATION
Hudson Partners and BRC Advisors have been exclusively retained to market site description Physical description
the sale this Bed Bath and Beyond anchored trophy asset. This rare leased
DESCRIPTION SPECIFICATION DESCRIPTION SPECIFICATION
investment opportunity features creative second floor space with very high
ceilings.
BUILDING SF 51,632 SF CONSTRUCTION TYPE Concrete Block
This Westchester Bed Bath and Beyond location has tremendous sales revenue
in excess of $10M annually, with percentage rent clauses increasing its base PARCEL SIZE 73,202 SF ROOF Rolled Composition
rent if revenues continue its trend. This 15 year lease expires in 2023, with a
one ten year option and a second renewal option for a 5 year term. This anchor 4123-001-010, 4123-001-011
APN FOUNDATION Concrete
4123-001-012, 4123-001-032
tenant is currently below economic rent for similar big box locations, with a
plethora of surrounding national credit tenants immediately adjacent to subject NUMBER OF TENANTS 4 FIRE PROTECTION Sprinklers
property. There are two other ground tenants: Starbucks has renewed their
lease and Coldwell Banker is currently month-to-month, but they both have
FLOOR-TO-AREA RATIO 0.63 HVAC 5 Ton Package Units
3% annual increases.
This leased investment does have a second floor tenant which is a USC ZONING (Q) C2-CD-2D-CD0 METERS Seperately Metered
ancillary location for its Physical Therapy department, their lease rolls over in
2020 with no options to renew. They are paying well below market rent at PARKING ± 130 Spaces AVERAGE PSF RENT $4.00 PSF
$2.18NNN per square footage, providing an investor additional upside with
the 2nd largest tenant occupying 11.6% of the rentable square footage.
YEAR BUILT 2007 ELEVATOR 16 Passenger/2,500lb Capcity
PROPERTY HIGHLIGHTS
LOT DIMENSIONS varies CEILING HEIGHT 15-20 Feet
• Trophy & Irreplaceable Location
• Initial 4.51% Cap Rate – Real Rental Upside
195.7’ on Sepulveda Blvd.
• Bed Bath & Beyond Anchor Tenant STREET FRONTAGE
145.7 on Drollinger Way
TENANCY Multi-Tenant
• Strong Revenue and Financials /Westchester Location
• Plenty of Parking/ Reciprocal Parking Easements Triple Net
HIGHWAY ACCESS 105 and 405 Freeways LEASE TYPE
• Tremendous Retail Synergy
• A Plethora of Surrounding National Credit Tenants
TRAFFIC COUNT ± 80,461 Vehicles/day ANCHOR TENANT OPTION BBB 1/10 Year and 1/5 Year Option
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RENT ROLL - CURRENT FINANCIAL ANALYSIS
FINANCIAL OVERVIEW ANNUALIZED OPERATING DATA
DESCRIPTION SPECS INCOME CURRENT PSF
Price $25,000,000 Gross Base Rent $1,415,044 $27.41
Downpayment (100%) $25,000,000 Reimbursement ($209,806) ($4.06)
Gross Square Feet 51,632 SF Potential Gross Income $1,624,850 $31.47
Rentable Square Feet 48,861 SF Less: Vacancy (5%) $81,243 $1.57
Price Per Square Foot $484.20 Effective Gross Income $1,543,607 $29,90
LEASE START LEASE Lot Size 73,202 SF
TENANT SQ. FT. % BUILDING RENT PSF NNN PSF NNN OPTION INCREASE Less: Expenses ($415,293) ($8.04)
DATE EXPIRATION
Price Per Foot on Land $341.52 Net Operating Income $1,128,314 $21.85
BED, BATH 1, 10 Year
40,000 SF 77.4% $85,333.33 $2.13 / PSF $9,683 $0.24 10/26/04 01/31/23 3% Annually
AND BEYOND 1, 5 Year
Current Cap Rate 4.51%
COLDWELL Occupancy 100 % EXPENSES CURRENT PSF
2,000 SF 3.87% $10,659.87 $5.33 / PSF $1,339.32 $0.67 03/30/07 MTM MTM 3% Annually
BANKER
NOI $1,128,314 Real Estate (1.125%) $281,250 $5.45
MOVEMENT
PERFORMANCE 5,199 SF 11.60% $11,343 $2.18 / PSF $4,014.50 $0.66 04/15/10 04/14/20 None None Average Rent $4.00 NNN Insurance $23,234 $0.45
INSTITUTE
Lease Type NNN Utilities $51,632 $1.00
STARBUCKS 1,662 SF 3.22% $10,584.17 $6.37 / PSF $1,114.37 $0.67 3/15/18 03/14/23 1, 5 Year None
Year Built 2007 Repairs & Maintenance $25,816 $0.50
$117,920.37 $16,151.19 Zoning [Q]C2-2D-CDO Management Fee $33,361 $0.65
AVG. PSF AVG. PSF
48,861 SF 100%
$4.00 $0.56
$1,415,044.44 $193,814.28 Type of Ownership Fee Simple TOTAL EXPENSES $415,293 $8.04
8 - BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 9
LOS ANGELES INTERNATIONAL AIRPORT LOS ANGELES INTERNATIONAL AIRPORT
TREMENDOUS RESIDUAL EFFECT AVERAGE TOTAL SPECIFIED
$1.6 Billion midfield passenger terminal will be finished late 2019. TRAFFIC AVERAGE HOUSEHOLD POPULATION CONSUMER
PEOPLE MOVER - 2.5 Miles
Arriving every 2 minutes connecting from Metro.
COUNTS AGE INCOME SPENDING
REGION’S ECONOMY
$7 Billion to Region’s Economic Out
TRAVELERS
80.9 Million Travelers in 2016 & 98.6 Million by 2040
SUMMER OLYMPICS
40,500 38 $88,867 611,803 $6,882,246
Los Angeles is America’s choice to host the 2024 Summer Olympics (Forbes)
10 - BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 11
LEASE COMPARABLES
A. 8820 S SEPULVEDA BLVD
WESTCHESTER, CA 90045
ANCHOR TENANT $2.13 NNN
DISTANCE 0.0 Miles
BUILDING SF 51,632 SF
TENANT BBB
4/11/2017 6099 Pacific Blvd Google Maps
TYPE Multi-Tenant
1/2017 10844 Wilshire Blvd Google Maps 6099 Paci韛c Blvd
4/11/2017 McConnell Ave Google Maps 4/11/2017 1829 S La Cienega Blvd Google Maps
LEASE TYPE
4/11/2017
NNN Atlantic Ave Google Maps
10844 Wilshire Blvd Atlantic Ave
McConnell Ave 1829 S La Cienega Blvd
1. 10840 WILSHIRE BLVD 2. 12746 W JEFFERSON BLVD 3. 6054 PACIFIC BLVD 4. 1831-1835 S LA CIENEGA BLVD 5. 7019 ATLANTIC AVE
Image capture: Feb 2017 © 2017 Google Image capture: Dec 2016 © 2017 Google
ImageCalifornia
Los Angeles, capture: Jan 2017 © 2017 Google Bell, California
Image capture: May 2015 © 2017 Google
Image capture: Jan 2017 © 2017 Google
WESTWOOD, CA 90024 PLAYA VISTA, CA 90094 HUNTINGTON PARK, CA 90255 LOS ANGELES, CA 90035 BELL, CA 90201
Los Angeles, California
Huntington Park, California Street View - Feb 2017 Street View - Dec 2016
Los Angeles, California
Street View - May 2015 Street View - Jan 2017
treet View - Jan 2017
ASKING RATE $2.50 / PSF/ MO ASKING RATE $5.50 / PSF/ MO ASKING RATE $2.50 / PSF/ MO ASKING RATE $2.83 / PSF/ MO ASKING RATE $2.52 / PSF/ MO
DISTANCE 9 Miles DISTANCE 1.7 Miles DISTANCE Miles DISTANCE Miles DISTANCE Miles
BUILDING SF 40,819 SF BUILDING SF 50,873 SF BUILDING SF 30,360 SF BUILDING SF 216,756 SF BUILDING SF 23,200 SF
TENANT 1 PIC Theaters TENANT Cinemark TENANT Starwood TENANT Smart & Final TENANT O’Riely Auto
TYPE Retail TYPE Retail TYPE Retail TYPE Retail/Office TYPE Retail
LEASE TYPE NNN LEASE TYPE NNN LEASE TYPE NNN LEASE TYPE NNN LEASE TYPE NNN
https://www.google.com/maps/@34.0438272,118.3768675,3a,15y,254h,90.65t/data=!3m6!1e1!3m4!1spFuUdJ1QqSz5XUjHsRMTiQ!2e0!7i13312!8i6656!6m1!1e1 1/1
https://www.google.com/maps/place/7019+Atlantic+Ave,+Bell,+CA+90201/@33.9717649,118.1880444,3a,60y,278.16h,91.59t/data=!3m6!1e1!3m4!1sv81VYAwH... 1/1
12 - BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. https://www.google.com/maps/@33.9770559,118.4190095,3a,37.8y,108.4h,96.84t/data=!3m6!1e1!3m4!1sXbPGIOf4jDCUReLMZe5gw!2e0!7i13312!8i6656!6m1... 1/1 BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 13
ps://www.google.com/maps/place/10840+Wilshire+Blvd,+Los+Angeles,+CA+90024/@34.0593442,118.4415692,3a,60y,125.3h,101.04t/data=!3m6!1e1!3m4!1... 1/1
https://www.google.com/maps/@33.9855506,118.2252522,3a,49.3y,62.92h,95.28t/data=!3m6!1e1!3m4!1s2j0tW9oOg1RcKN47vMhL_w!2e0!7i13312!8i6656!6m1!... 1/1
ANCHOR TENANT PROFILE TENANT PROFILE
Bed Bath & Beyond Inc. is an American-owned chain of domestic merchandise retail stores in the United States, Puerto Rico, Canada and Mexico. Coldwell Banker Real Estate LLC is an American real estate franchise owned by Realogy with headquarters in Madison, New Jersey. It was
Formed in 1971, the stores sell goods primarily for the bedroom and bathroom, as well as kitchen and dining room. The company is included in founded in 1906 in San Francisco, and has approximately 3,000 offices in 43 countries and territories. Coldwell Banker analyzes data from more
the S&P 500 and Global 1200 Indices and the NASDAQ-100 Index. It is also counted among the Fortune 500 and the Forbes Global 2000 as well. than 81,000 similar-sized four-bedroom, two-bedroom homes in over 2,700 real estate markets nationwide and publishes the findings in its annual
Since the liquidation of Linens ‘n Things, Bed Bath & Beyond has had few major retail competitors except Walmart, Target, J. C. Penney, and some Home Listing Report. The report serves as a guide for determining most affordable and most expensive housing markets.
mid-sized players like Pier 1 Imports. Companies such as Crate & Barrel, IKEA and the numerous Williams-Sonoma companies (e.g. Pottery Barn After the devastating 1906 San Francisco earthquake and fires, Colbert Coldwell and two partners formed Tucker, Lynch and Coldwell on August
and West Elm) are competitors as well. 27, 1906. Benjamin Arthur Banker joined the firm as a salesman in 1913, and became a partner in 1914. The company was renamed Coldwell
In 1971, Warren Eisenberg and Leonard Feinstein opened a store in Springfield, New Jersey called Bed ‘n Bath. By 1985, Eisenberg and Feinstein Banker in the same year. Banker and Coldwell remained active in the company throughout their lives.
were operating 17 stores in the New York metropolitan area and California. Also in 1985, the first superstore was opened, as an attempt to remain In 1920 Coldwell Banker moved to a three-story building in San Francisco. It opened an office in Phoenix, Arizona, its first outside California, in
competitive with Linens ‘n Things, Pacific Linen, and Luxury Linens. In order to properly represent the size increase in its retail stores, the company 1952. In the 1970s the company expanded by acquiring firms in Atlanta, Chicago, and Washington, D.C. The first international Coldwell Banker
changed its name to Bed Bath & Beyond. office opened in Toronto, Canada in 1996.
Coldwell Banker became a corporation in 1961, and went public in 1968. In 1981 it was bought by Sears, Roebuck, and became part of the Sears
Financial Network. Sears sold it to the Fremont Group, a California investment company, for $230 million in 1993. It was sold to HFS Inc., later
Cendant, in 1996. When Cendant broke up in 2006, the real estate businesses were spun off as Realogy, which was sold to Apollo Management
for about $7.75 billion.
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SECOND FLOOR TENANT PROFILE TENANT PROFILE
PROFESSIONAL
EDUCATION
CENTER
USC base, Movement Performance Institute (MPI) is a state-of-the-art clinical facility dedicated to understanding the biomechanical basis of Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. As of
healthy and disordered human motion. The basic philosophy behind MPI is human health and quality of life depends on the ability to move November 2016, it operates 23,768 locations worldwide, including 13,107 (+170) in the United States, 2,204 (+86) in China, 1,418 (-12) in Canada,
skillfully and efficiently. Furthermore, it is our belief that movement dysfunction is the root cause of many overuse and sport related injuries of 1,160 (+2) in Japan and 872 in South Korea (bumping United Kingdom from 5th place) (Differences reflect growth since Jan 8, 2016).
the musculoskeletal system. To this end, we provide in-depth biomechanical evaluations as well as rehabilitation and consultation services for Starbucks is considered the main representative of “second wave coffee”, initially distinguishing itself from other coffee-serving venues in the
persons with musculoskeletal complaints or those looking to enhance physical performance and/or prevent injury. US by taste, quality, and customer experience while popularizing darkly roasted coffee. Since the 2000s, third wave coffee makers have targeted
Through objective measurements of motion, forces/pressures, muscle activation patterns and muscle performance, more effective clinical quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for
interventions can be designed and better long-term outcomes achieved. Although a primary focus of MPI is dedicated to the evaluation of persons efficiency and safety reasons.
who are injured or are having difficulty moving, we also perform biomechanical assessments aimed at enhancing physical performance and Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee known as VIA, espresso, caffe latte, full- and loose-
preventing injury in non-injured persons; including return to sport evaluations for those who have completed rehabilitation following injury and/or leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such
surgery and are striving to return to previous activity levels as quickly and safely as possible. as chips and crackers; some offerings (including their annual fall launch of the Pumpkin Spice Latte) are seasonal or specific to the locality of
Beyond enhancing the physical well-being of persons with movement impairments, MPI also is committed to education and research. MPI offers the store. Many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select “Starbucks
post-professional courses aimed at educating clinicians in the areas of clinical biomechanics and rehabilitation. Furthermore, MPI is active in Evenings” locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold at grocery
carrying out clinical research to better understand the root causes of various musculoskeletal conditions as well as optimal methods to restore stores.
function following injury.
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SECTION 2 | PROPERTY INFORMATION BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 19
PROPERTY PHOTO AERIAL AMENITIES
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MANCHESTER BOULEVARD
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SEPULVEDA BOULEVARD
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20 - BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 21AERIAL MAP PLAT MAP 22 - BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 23
JAY MARTINEZ CONTACT
Managing Principal CELL PHONE
818.212.3057
STUDIO CITY OFFICE
PHONE
11846 Ventura Blvd., #140 818.699.1603
Studio City, CA 91604
FAX
BEVERLY HILLS OFFICE 818.688.8140
9301 Wilshire Blvd., Suite 206
EMAIL
Beverly Hills, CA 90210 jay@hudsonpartnersinc.com
Cal BRE: 01367663 WEBSITE
www.hudsonpartnersinc.com
ELIZABETH CLARK CONTACT
Senior Vice President CELL PHONE
310.740.7283
BEVERLY HILLS OFFICE
PHONE
9301 Wilshire Blvd., Suite 206
310.525.3702
Beverly Hills, CA 90210
FAX
Cal BRE: 01811246 310.807.9389
EMAIL
eclark@brcadvisors.com
WEBSITE
www.brcadvisors.com
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