ALDI Downey - OFFERING MEMORANDUM Downey, CA - Westland Real Estate Group
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ALDI Downey
OFFERING MEMORANDUM
Downey, CA
Aldi Downey
OFFERING MEMORANDUM
Downey, CA
TABLE OF CONTENTS
Confidentiality Disclaimer 2
Offering Summary 3
Lease Summary 4
Tenant Profile 5
Investment Highlights 6
Site Plan 8
Aerial Overview 9
Regional Map 11
Area Overview 12
Demographics 13
CONTACT:
Manny Bukiet
Office: (877) 439-7130
Cell: (310) 346-9147
Email: manny.b@westlandreg.com
The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 1
CONFIDENTIALITY DISCLAIMER DOWNEY ALDI CONFIDENTIALITY DISCLAIMER This Marketing Package and its contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the “Contents”), are of a confidential nature. Specifically, you acknowledge that this Marketing Package, and any information obtained during discussions, contains information relating to the affairs of __________ (“Owner”), including but not limited to trade secrets, strategic plans, marketing information, business plans, models, initiatives, financial information, and information on the identity of Seller’s customers and/or vendors (collectively the “Confidential Material”), which is to be used only for the purpose of evaluating and, if applicable, consummating a possible business transaction between you and Owner. Owner is only furnishing you Confidential Information and permitting you to interview employees or representatives of Owner based on your agreement to the following conditions. By accepting this Marketing Package, you unconditionally agree that you will hold and treat the Marketing Package and the Confidential Information in the strictest confidence, that you will not photocopy or duplicate the Marketing Package or any part thereof, that you will not disclose the Marketing Package or any Confidential Material to any other entity (except that a principal shall be permitted to disclose to employees, contractors, investors, retained advisors, and third-party institutional lenders potentially providing financing on this transaction, Confidential Materials when necessary to aid your determination of whether to make a purchase proposal) without prior authorization of the property’s owner (the “Owner”), and that you will not use the Marketing Package or any of the contents in any fashion or manner detrimental to the interest of Owner. At the conclusion of our discussions, or upon written demand by Owner, all Confidential Information, including the Marketing Package, written notes, photographs, memoranda, and any other materials produced or taken by you in connection with your review of the Property, shall be returned or submitted to Owner. This Marketing Package contains selected information and 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 Owner, and therefore is subject to material variation. This Marketing Package 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 the preparation of the information herein. Additional information and an opportunity to inspect the Property will be made available to interest and qualified prospective buyers. Owner’s officers, legal counsel, principals, onsite management, and employees (“Owner’s Personnel”) are not authorized to make any representations on behalf of Owner. Further, Owner’s Personnel have not made, nor will make any representations or warranties, express or implied, as to the accuracy or completeness of this Marketing Package or any of its contents, and no legal commitment or obligation shall arise by reason of the Marketing Package or its contents. Analysis and verification of the information contained in the Marketing Page is solely the responsibility of the prospective buyer, with the Property to be sold on an as is, where-is basis, without any representations as to the physical, financial or environmental condition of the Property. Furthermore, in the event of any inconsistency between this Marketing Package and any final agreement and, the terms of the final agreement shall control. Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any entity at any time with or without notice. Owner has no legal commitment or obligation to any entity reviewing this Marketing Package or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner in its sole discretion, a written agreement for purchase of the Property has been fully executed, delivered, and approved by Owner, and any conditions to the Owner’s obligations thereunder have been satisfied or waived. The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 2
OFFERING SUMMARY DOWNEY ALDI LOCATION Aldi’s Downey 11215 Lakewood Blvd Downey, CA 90241 OFFERING SUMMARY Price $7,050,000 Capitilazation Rate 3.9% Price per Square Foot $380 Net Rentable Area 18,557 Year Built 2017 Lot Size (Acres) 1.65 acres (71,874sf) Now open! The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 3
LEASE SUMMARY
ALDI’S
LEASE SUMMARY REIMBURSMENTS
Tenant AL California, LLC – DBA ALDI Rental Increases 10% Every 5 years
Lease Commencement February 15, 2015 Renewal Options 8 5-year @ 10% Increases
Lease Expiration 15 years after commensement Property Taxes Tenant Responsibility
Lease Type Ground Lease Insurance Tenant Responsibility
Net Operating Income Confidential Common Area Maintenance Tenant Responsibility
Net Rentable Area 18,557 Repairs & Maintenance Tenant Responsibility
Monthy Rent Per Square Foot Confidential Parking Lot Tenant Responsibility
HVAC Tenant Responsibility
The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 4
TENANT PROFILE
DOWNEY ALDI
ABOUT ALDI
Founded by the Albrecht family, the first ALDI store opened in 1961 in Germany, making ALDI the first
discount grocer in the world. Headquartered in Batavia, Illinois, ALDI now has more than 1,600 stores
across 35 states, employs over 24,000 people and has been steadily growing since opening its first US
store in Iowa in 1976.
Over the past decade, Aldi has nearly doubled in size and by 2018, ALDI will bring its total number of
US stores to nearly 2,000 – opening their doors to 650 new locations, including Southern California.
Aldi has worldwide sales in a range of $53 billion to $67 billion, and plans to operate 2,500 US stores
by 2021. Aldi has dominated the European market as the leading discount grocer. The company is
expected to more than double their average sales growth to 15% between 2015 and 2020, from 6%
over the previous five years.
Company Type Privately Held
Locations (US) 1,600
Website https://www.aldi.us/en/ | https://corporate.aldi.us/
The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 5
INVESTMENT HIGHLIGHTS
DOWNEY ALDI
Easily accessible from the 5, 105, 605, and 710 freeways Downey Aldi is located in the heart of the city at the signalized interesections of Lakewood
Boulevard and Firestone Boulevard with 45,000 cars per day. The property is conveniently located near some of the most highly traveled
freeways in Southern California.
Parking on lot The Downey Aldi lot benefits from having its own parking lot on the property. The parking lot is maintaned by the tenant, as agreed
upon in the lease agreement.
Downey Depot Transportation Center Located nearby is the Downey LINK is the city’s bus stransit system connecting the cities of Bellflower Bell
Gardens, Norwalk, Paramount, Pico Rivera, Santa Fe Springs, and South Gate with 22,000 daily riders. The Downey Depot Transportation Center
is where all transfers occur for the entire system, creating strong regional ties and bringing additional traffic to the center from the surrounding
cities.
Primary Retail Thoroughfare in Downey Firestone Boulevard is the retail hub of Downey, including the Stonewood Center Mall, anchored Kohl’s, Macy’s,
JCPenney and Sears, as well as other national tenants of Target, Albertsons, CVS/pharmacy, Home Depot, Ralphs, Stater Bros and Walgreens.
Dense, Infill Urban Demographics There are 802,000 people with an average household income of $60,000 within 5 miles of Downey Aldi. The property
benefits from the fact that Downey High School and Warren High School are within walking distance, providing additional daytime customers to
the store.
The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 6
The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 7
SITE PLAN
DOWNEY ALDI
NASH AVENUE
SUMMARY
LAND AREA ±74,180 SF 1.7 AC
22 BUILDING AREA ±18,557 SF
LOADING LAND/BUILD RATIO 3.0/1 25%
6
NOT A PART PARKING PROVIDED 81
6 PARKING RATIO 4.4 /1000
FIRESTONE BOULEVARD
18
#11215
18,557 SF
18
CARTS
11
LAKEWOOD BOULEVARD
The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 8
AERIAL OVERVIEW
DOWNEY ALDI
S
E W
1.7 Miles
N
VD.
D BL
WOO
SUBJECT
0.3 Miles
PROPERTY
LAKE
0.4 Miles
FIRESTONE BLVD. FIRESTONE BLVD.
LAKEWOOD BLVD.
The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 9SUBJECT
PROPERTY
2015 DEMOGRAPHICS
.
POPULATION:
1 MILE
32,512
3 MILE
269,629
5 MILE
801,769
E BLVD
STON
HOUSEHOLD INCOME: $63,563 $65,563 $59,701
FIRE
The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 10REGIONAL MAP
DOWNEY ALDI
SUBJECT
PROPERTY
The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 11AREA OVERVIEW
DOWNEY ALDI
DOWNEY is a city located in the southeast corner of Los Angeles County, 12 miles
southeast of downtown. Spanning 12.5 square miles, the city has a total
population of roughly 115,000, with a projected growth rate of 3.3% over the next 5 years. As the home
to the world’s oldest McDonald’s restaurant and the site of the first Taco Bell, Downey is a city famed
for its long standing business and has been rated in the top 25% of “100 Best Cities To Do Business in
California” by California Business Magazine. The city is also the birthplace of the former NASA Industrial
Plant, which served as the manufacturing home for both the Apollo Space Program and the Space
Shuttlle program
Currently, the city’s largest employers are primarily in healthcare related industries, with Kaiser
Permanente, Rancho Los Amigos Medical Center, and Downey Regional Medical being three of the city’s
top employers. Downey has an unemployment rate of 6.3% with future job growth projected over the
next ten years to be close to 40%.
Downey can be easily reached by any of the four major California freeways: Interstate 105, along with
its accompanying Metro rail line, passes through the southern part of the city; Interstate 5 cuts through
the northern portion of the city; Interstate 605 runs north-south along the eastern edge of town; and
Interstate 710 passes just west of the city, running from Long Beach to the south and Alhambra to the
north. Downey is also within 30 minutes of the Los Angeles. Ontario, and John Wayne International
Airports.
The site of the former NASA Industrial Plant is one of the most active areas in the city, with a number of
large projects having been completed there or currently being developed. On the northern section of the
former NASA site is the approximately 375,000 square foot Downey Landing Retail Center anchored by
Best Buy, Staples, and Old Navy, as well as a number of high-quality eateries. Downey Studios is located
on approximately 80 acres of land on the central portion of the former NASA site. Downey Studios is a
state-of-the-art media production facility that includes two large sound stages, a back lot with a suburban
street scene, and entertainment office space. Downey sold approximately 30 acres of the former NASA
site to Kaiser Permanente, which has since constructed a state-of-the-art 352- bed hospital and a new
medical office building at the site.
The Promenade at Downey development, also at the former NASA site, consists of 1.1 million square feet
of retail commercial area, 300,000 square feet of office space and 116,000 square feet of hotel space(150
rooms). The mixed-use development will feature as assortment of premier retailer, restaurants and cafes,
a 14-screen cinema, and office space; the project is expected to be completed in the first half of 2017
The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 12DEMOGRAPHICS
DOWNEY ALDI
1-MILE 3-MILE 5-MILE
POPULATION
2020 Projection 33,597 278,133 826,523
2015 32,512 269,629 801,769
2010 Census 31,666 263,134 782,950
2000 Census 30,136 259,546 777,649
Growth 2000-2010 5.08% 1.38% 0.68%
Growth 2010-2015 2.67% 2.47% 2.40%
Growth 2015-2020 (anticipated) 3.34% 3.15% 3.09%
HOUSEHOLDS
2020 Projection 10,840 76,614 216,870
2015 10,523 74,283 210,042
2010 Census 10,307 72,504 204,570
2000 Census 10,326 72,212 202,380
Growth 2000-2010 -0.19% 0.40% 1.08%
Growth 2010-2015 2.10% 2.45% 2.68%
Growth 2015-2020 3.01% 3.14% 3.25%
2015 EST. POPULATION BY SINGLE-CLASSIFICATION RACE 32,512 269,629 801,769
White Alone 18,338 141,772 395,641
Black or African American Alone 1,105 10,542 42,514
Asian Alone 231 2,589 7,795
Native Hawaiian and Other Pacific Islander 2,022 13,174 36,636
Alone
Some Other Race Alone 71 721 2,819
Two or More Races 1,391 10,445 31,572
2015 EST. POPULATION BY ETHNICITY (HISPANIC OR LATINO) 32,512 269,629 801,769
Hispanic or Latino 24,301 217,659 660,856
Not Hispanic or Latino 8,211 51,970 140,913
2015 EST. AVERAGE HOUSEHOLD INCOME $63754 $65,563 $59,701
13
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