BEVERLY PLAZA 26342 OSO PARKWAY | MISSION VIEJO, CALIFORNIA STARBUCKS ANCHORED CENTER
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BEVERLY PLAZA 100 %
2 6 3 4 2 O S O PA R K W AY | M I S S I O N V I E J O , C A L I F O R N I A LEASE
D
S TA R B U C K S A N C H O R E D C E N T E R
FOR SALE
DISCLAIMER
This Confidential Offering Memorandum (this “Memorandum”) is being delivered delivered and approved by Owner and any conditions to Owner’s obligations
subject to the terms of the Confidentiality Agreement signed by you (the hereunder have been satisfied or waived. Owner has retained Broker as its
“Confidentiality Agreement”) and constitutes part of the Evaluation Material (as exclusive broker and will be responsible for any commission due to Broker in
defined in the Confidentiality Agreement). It is being given to you for the sole purpose connection with a sale of the Property pursuant to separate agreement. Broker
of evaluating the possible acquisition of 26342 Oso Parkway, California (“Property”), is not authorized to make any representation or agreement on behalf of Owner.
and is not to be used for any other purpose or made available to any other party Each prospective purchaser will be responsible for any claims for commissions
without the prior written consent of the “Owner” or Lee & Associates Commercial by any other Broker in connection with a sale of the Property if such claims arise
Brokerage (“Broker”). from acts of such prospective purchaser or its Broker. Owner has the property in
an option to purchase and Owner has no obligation to exercise option and close
This Memorandum was prepared by the Broker based on information supplied by on this property.
the Owner and the Broker. It contains selected information about the Property
and the real estate market but does not contain all the information necessary to This Memorandum is the property of Owner and Broker and may be used only
evaluate the acquisition of the Property. The financial projections contained herein by parties approved by Owner and Broker. No portion of this Memorandum may
(or in any other Evaluation Material, including any computer diskettes) are for general be copied or otherwise reproduced or disclosed to anyone except as permitted
reference only. They are based on assumptions relating to the general economy under the Confidentiality Agreement.
and local competition, among other factors. Accordingly, actual results may vary
materially from such projections. Various documents have been summarized herein
to facilitate your review; these summaries are not intended to be a comprehensive Exclusively Offered By:
statement of the terms or a legal analysis of such documents.
BRIAN GARBUTT
While the information contained in this Memorandum and any other Evaluation Senior Vice President
License ID# 01215482
Material is believed to be reliable, neither Broker nor Owner guarantees its accuracy
(949) 790-3166
or completeness. Because of the foregoing and since the Property will be sold on an bgarbutt@leeirvine.com
“AS IS”, “WHERE IS” basis, a prospective purchaser must make its own independent
investigations, projections, and conclusions regarding the acquisition of the Property ALLEN BASSO
without reliance on this Memorandum or any other Evaluation Material. Although Senior Vice President
additional Evaluation Material (which may include engineering, environmental License ID# 01215482
(949) 790-3130
or other reports) may be provided to qualified parties as marketing proceeds,
abasso@leeirvine.com
prospective purchasers should seek advice from their own attorneys, accountants,
and engineering/environmental experts. ERIC DARNELL
Vice President
Owner expressly reserves the right, at its sole discretion, to reject any offer to CalBRE 01888743
purchase the Property or to terminate any negotiations with any party at any time (949) 790-3157
edarnell@leeirvine.com
with or without written notice. Owner shall have no legal commitment or obligations
to any prospective purchaser until a written sale agreement has been fully executed,
TABLE OF CONTENTS
Executive Summary ....................................................................... 1
Investment Highlights
Property Description ..................................................................... 4
Highlights
Parcel Map
Site Plan
Aerials
Location Map
Sale Comparables ......................................................................... 9
Business Park
Retail
Location Overview ........................................................................ 11
Orange County Overview
Financial Analysis ........................................................................... 14
Assumptions
Cash Flow
Rent Roll
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Value Add Property Group of Lee & Associates Irvine, Inc. is • Freestanding Retail/Office building in a desirable location
pleased to present the opportunity to acquire Beverly Plaza within the city of Mission Viejo.
(“the Property’), a Jewel-Box Starbucks Anchored Multi-Tenant • Diverse Tenant Mix including Starbucks ($78B Market Cap) and
Retail and Office building located in Mission Viejo in the heart Dublin 4, a successful Gastropub that just renewed their
of Orange County’s South County submarket. The Property lease for five (5) additional years.
sits on 1.09 acres with major street frontage on Oso Parkway • 100% leased property.
directly off the 5 Freeway and Oso Parkway off-ramp.
INVESTMENT
1 HIGHLIGHTS
• High Traffic Location: Beverly Plaza is located on Oso Parkway with a daily traffic count of 57,000 cars and is located directly next
to the Northbound Off-Ramp of Interstate 5 with a daily traffic count of 295,000 cars.
• Jewel-Box Investment: Opportunity for an investor to own a “Jewel-Box” 14,458 SF retail/office building in South Orange County.
• Adjacent Apartment Development: Adagio on the Green is a brand new 256 Unit Luxury Apartment complex that is walking distance
to Beverly Plaza.
• Close Proximity to Major Retail Mall: Beverly Plaza is located minutes from The Shops at Mission Viejo which is a 1.15 Million Square
Foot Mall, Mission Hospital and Mission Viejo Country Club.
• Newly Constructed Building: The plaza was constructed in 2006 and has a mix of creative and standard finishes with some exposed
ceilings with covered parking and elevators served. There would be minimal maintenance in the foreseeable future for a new owner.
• Scenic Views: Beverly Plaza sits on the Forefront of the Mission Viejo Country Club Surrounded by lush green landscape, and golf
course views.
• The 12 month national average cap rate for Starbucks was 4.72%.
BEVERLY PLAZA | MISSION VIEJO 1
OFFERING SUMMARY
Location: Beverly Plaza
26342 Oso Parkway
Mission Viejo, CA 92691
Offering Summary:
Price: $8,900,000
1st Year Actual
Capitalization Rate: 5%
Net Rentable Area (NRA): 14,458
Lot Size (Square Feet): 47,480
APN: 761-072-11
761-072-13
2 761-072-14
BEVERLY PLAZA | MISSION VIEJO 2
4
PROPERTY
DESCRIPTION
BEVERLY PLAZA | MISSION VIEJO 4
BUILDING DESCRIPTION
Type: Retail Freestanding Strip Center with Office above
Center: Beverly Plaza
GLA: 14,458 SF
Stories: Two (2), Elevator Served
Year Built: 2006
Construction: Reinforced Concrete
Tenancy: Multi-Tenant
Acres: 1.09
Frontage: 131’ on Oso Parkway
Parking: 52 Surface Stalls, 15 Covered Stalls
Water: Santa Margarita Water District
5
Electrical Servicce: Southern California Edison
Signage: Individual & Exclusive Signage Facing Oso Parkway
and 5 freeway off-ramp
APN: 761-072-11, 13,14
BEVERLY PLAZA | MISSION VIEJO 5
SITE PLAN
RKWAY
OSO PA
SIG
N
2ND STORY
201
202
203
204 / 205
202
201
6
NAIL SALON 101
102
103
104
OSO PARKWAY
OFFRAMP
INTERSTATE
SUITE TENANT SQ. FT.
5
CALIFORNIA
405 ELEVATOR
Suite FIRST FLOOR
Tenant SQ FT
Exp
Date
101 Subway 1,372
First Floor
UNDERGROUND 102 Dublin 4 Gastropub 3,511
PARKING 101 103 Nail Salon 1,372
WINEWORKS for Everyone 3/28
3,511
102 104 DublinStarbucks
4 Gastropub 3,511 8/27
1,575
Wineworks For FLOOR
SECOND
103 3,511 8/27
201 Everyone
VACANT 2,782
104 202 Starbucks
VACANT 1,575 9/26
505
203 SecondPremier
RE/MAX Floor Realty 1,713
SUBJECT PROPERTY 201 204-205 OC Laser
Universal Dental Center
Calling 1,787 3,000
3/21
202 ATM Wescom
Music Vault Credit Union
Academy 3,511 -
5/24
OC Laser Dental
204-205 3,000 9/23
Center
BEVERLY PLAZA | MISSION VIEJO 6AERIAL OVERVIE
AERIAL MAP
OS
OP
AR
K
WA
Y
CPD
295,000
5
405 57
7 ,0
00
CP
D
SUBJECT
PROPERTY
BEVERLY PLAZA | MISSION VIEJO 7LOCATION MAP REGIONAL MAP
8
SUBJECT
PROPERTY
N
BEVERLY PLAZA | MISSION VIEJO 89
SALE
COMPARABLES
BEVERLY PLAZA | MISSION VIEJO 9SALE COMPS
ADDRESS BUILDING SF SALES PRICE PRICE PSF SALE DATE CAP RATE
1 ALISO VIEJO TOWN CENTER ±23,512 SF $13,080,000 $556.00 AUGUST 2017 5.0%
26791 Aliso Creek Road
Aliso Viejo, CA
2 PACIFIC COMMERCENTRE ±13,918 SF $6,675,000 $479.59 AUGUST 2017 4.9%
24531 Trabuco Road
Lake Forest, CA
3 THE SHOPS AT HOME DEPOT ±10,607 SF $6,830,000 $643.91 NOVEMBER 2018 5.9%
20025 Lake Forest Drive
Lake Forest, CA
10
BEVERLY PLAZA | MISSION VIEJO 10LOCATION OVERVIEW
LOCATION OVERVIEW
Mission Viejo is a city located in the heart of the prestigious South Orange County. As of 2014, Mission Viejo’s population consisted of
93,699 people. Mission Viejo is one of the largest master-planned communities ever built under a single project in the United States. The
planned community concept that makes Mission Viejo the ideal place to live, also makes the city an ideal place for businesses. The city
boasts five, Interstate 5 freeway on/off ramps, with virtually all businesses located within 2 miles of the freeway. Mission Viejo is poised to
serve the commercial and retail needs of a region of 250,000 people that eventually will grow by another 60,000 as the foothills east of the
city are fully developed. Mission Viejo is a world-class city in the heart of one of the most affluent growth markets in the nation and was
recently named as the 2nd best place in the U.S. to buy a home by “Entrepreneur Magazine.”
Mission Viejo is recognized as one of America’s most successful master-planned communities and has consistently been voted as one
of America’s most safe communities. Mission Viejo was ranked Number One for the “Safest City in California” in 2013. The city’s strict
adherence to a master plan for 35 years has created a community best known for immaculate, attractive subdivisions, 43 parks, a 41,000
square foot library, California Distinguished Schools and National Blue Ribbon Schools. Community planners have blessed the city with the
best of both worlds, making Mission Viejo the residential and commercial heart of South County. Interstate 5 links Mission Viejo to the Irvine
Spectrum to the north and San Juan Capistrano and San Clemente to the South.
The Shops at Mission Viejo is an upscale shopping mall anchored by Macy’s, Nordstrom, H&M, and Forever 21. With over 150 different
12
stores, the Shops at Mission Viejo is Orange County’s Southernmost Mall. Originally opened in 1979, the mall underwent a massive
renovation in 2000 which allowed it to become home to the very first Microsoft store in the country. In 2014, The Shops at Mission Viejo
launched an upgraded dining pavilion with new furniture, flooring, and electronic charging stations.
BEVERLY PLAZA | MISSION VIEJO 12LOCATION OVERVIEW
Orange County is the third most populous county in the State of California and the sixth most populous county in the United States.
Located in the heart of Southern California between Los Angeles to the north, San Diego to the south, and Riverside and San Bernardino
counties to the east. Orange County is comprised of 34 cities within its 798 square miles and a population of over 3 million people.
Also referred to as The Gold Coast of California, Orange County has over 42 miles of coastline with breathtaking vistas that have led
tourists and residents alike to proclaim it the California Riviera. Orange County is home to some of the world’s most popular tourist
attractions such as The Disneyland Resort and California Adventure, Knott’s Berry Farm, Mission San Juan Capistrano and miles of popular
beaches. South Coast Plaza offers world-renowned shopping that generates over $1.5 billion which is the highest in the United States.
Over 38 million tourists visit Orange County annually, spending approximately $7.3 billion and supporting nearly 83,000 local jobs.
Mission Viejo
The Pacific Ocean borders Orange County on the southwest side making several beach cities favorite destinations. Laguna Beach is known
as a mecca for art lovers who flock each summer to attend the Festival of the Arts, Pageant of the Masters, Art-A-Fair and the Sawdust
Festival. To the North is Huntington Beach, or “Surf City,” with one of the longest piers in the state. Huntington Beach is known for hosting
major surfing competitions, including the US Open. Huntington Harbor, Newport Harbor and Dana Point Harbor are famous for their
festive boat parades during the winter months.
Orange County
13 is an influential metropolitan area with world-class educational, cultural, scientific and business institutions making it one of
the most desirable places to live, work and enjoy the quintessential American Dream. Offering the best golf courses, miles of hiking, biking
and equestrian trails, its Golden Coast, theme parks and cultural delights, Orange County will continue to attract residents and visitors.
BEVERLY PLAZA | MISSION VIEJO 13FINANCIAL ANALYSIS
ASSUMPTIONS
CASH FLOW ASSUMPTIONS
Software: The cash flow analysis has been
prepared with the assistance of ARGUS
software.
Analysis Period: A 10-year discounted cash flow is
prepared commencing May 1, 2019.
Square Footage: There is a total of 14,458 square feet.
MARKET LEASING ASSUMPTIONS
15
NEW TERMS / RENEWAL
RETAIL / MEDICAL OFFICE
Renewal Possibility 80% 80%
Market Rent Per Month $4.00 NNN $1.25 NNN
Months Vacant Four (4) Four (4)
Tenant Improvements / Renewal $8.00 PSF / $4.00
$6.00 PSF / $3.00 PSF
New Deals Deals PSF
Leasing Commissions 6% - 3% 6% - 3%
Reimbursements NNN NNN
Term Lengths 5 Years 5 Years
BEVERLY PLAZA | MISSION VIEJO 15CASH FLOW
Software: ARGUS Ver. 15.0.1.26 (Build: 15000-B) 26342 Oso Parkway Date: 4/16/19
File: OSO5 (wayne) Mission Viejo, CA 92691 Time: 8:52 am
Property Type: Retail Ref#: AGL
Portfolio: Lee & Associates Page: 1
Schedule Of Prospective Cash Flow
In Inflated Dollars for the Fiscal Year Beginning 7/1/2019
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
For the Years Ending Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027 Jun-2028 Jun-2029 Jun-2030
____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________
Potential Gross Revenue
Base Rental Revenue $473,834 $486,849 $506,691 $517,183 $569,805 $686,572 $699,442 $722,956 $777,258 $821,146 $845,310
Absorption & Turnover Vacancy (2,301) (27,971) (2,667) (7,748) (24,743) (15,657) (17,272)
____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________
Scheduled Base Rental Revenue 473,834 484,548 506,691 517,183 541,834 686,572 696,775 715,208 752,515 805,489 828,038
Expense Reimbursement Revenue 218,084 221,110 229,371 235,029 232,378 251,371 254,717 261,466 263,297 274,055 334,531
____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________
Total Potential Gross Revenue 691,918 705,658 736,062 752,212 774,212 937,943 951,492 976,674 1,015,812 1,079,544 1,162,569
____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________
Effective Gross Revenue 691,918 705,658 736,062 752,212 774,212 937,943 951,492 976,674 1,015,812 1,079,544 1,162,569
____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________
Operating Expenses
Taxes @ 1.1% 100,045 102,046 104,087 106,169 108,292 110,458 112,667 114,920 117,219 119,563 175,232
Insurance 13,368 13,769 14,182 14,608 15,046 15,497 15,962 16,441 16,934 17,442 17,965
Electricity / Water / Sewer 15,230 15,687 16,158 16,642 17,141 17,656 18,185 18,731 19,293 19,872 20,468
Landscaping 18,191 18,737 19,299 19,878 20,474 21,088 21,721 22,373 23,044 23,735 24,447
Refuse 10,767 11,090 11,423 11,765 12,118 12,482 12,856 13,242 13,639 14,048 14,470
Valet Service 12,495 12,870 13,256 13,654 14,063 14,485 14,920 15,367 15,828 16,303 16,792
Other Direct Expenses 27,228 28,045 28,886 29,753 30,645 31,565 32,512 33,487 34,492 35,526 36,592
Management @ 3% 16 20,758 21,170 22,082 22,566 23,226 28,138 28,545 29,300 30,474 32,386 34,877
Parking Costs 25,200 25,200 25,200 25,200 25,200 25,200 25,200 25,200 25,200 25,200 25,200
____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________
Total Operating Expenses 243,282 248,614 254,573 260,235 266,205 276,569 282,568 289,061 296,123 304,075 366,043
____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________
Net Operating Income 448,636 457,044 481,489 491,977 508,007 661,374 668,924 687,613 719,689 775,469 796,526
____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________
Leasing & Capital Costs
Tenant Improvements 8,835 16,207 17,879 10,242 9,298 29,691 18,789 20,726
Leasing Commissions 5,277 30,977 34,172 6,117 17,771 56,748 35,911 39,614
Reserves - $0.15 2,169 2,234 2,301 2,370 2,441 2,514 2,590 2,667 2,747 2,830 2,915
____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________
Total Leasing & Capital Costs 2,169 16,346 2,301 2,370 49,625 54,565 18,949 29,736 89,186 57,530 63,255
____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________
Cash Flow Before Debt Service $446,467 $440,698 $479,188 $489,607 $458,382 $606,809 $649,975 $657,877 $630,503 $717,939 $733,271
& INCOME TAX ============ ============ ============ ============ ============ ============ ============ ============ ============ ============ ============
BEVERLY PLAZA | MISSION VIEJO 16RENT ROLL
Tenant Name Floor Rate & Amt CPI & Current Months Pcnt Description of Imprvmnts Commssns Sales Assumption about
Changes Changes
Type & Suite Number SqFt Per Year Porters' Wage to to Operating Expense Rate Rate Breakpoint subsequent terms for
on to
Lease Dates & Term Bldg Share Per Month Miscellaneous Abate Abate Reimbursements Amount Amount Overage % this tenant
1 Universal Calling Inc. 1,787 $13.30 Mar-2019 $13.70 Net: Pays a full Market
Office, Suite: 201 12.36% $23,768 Mar-2020 $14.11 pro-rata share of See assumption:
Mar-2018 to Mar-2021 $1.11 all reimbursable $1.25 NNN (office)
37 Months $1,981 expenses.
2 Music Vault Academy, LLC 3,213 $19.72 Jan-2020 $20.31 Net: Pays a full Market
Office, Suite: 202/203 22.22% $63,360 Jan-2021 $20.92 pro-rata share of See assumption:
Jan-2019 to May-2024 $1.64 Jan-2022 $21.55 all reimbursable $4.00 NNN (retail)
65 Months $5,280 Jan-2023 $22.19 expenses.
Jan-2024 $22.86
3 Nail Salon 1,372 $33.00 Mar-2019 $33.99 Net: Pays a full Market
Retail, Suite: 101 9.49% $45,276 Mar-2020 $35.01 pro-rata share of See assumption:
Mar-2018 to Mar-2028 $2.75 Mar-2021 $35.97 all reimbursable $4.00 NNN (retail)
121 Months $3,773 Mar-2022 $37.14 expenses.
Mar-2023 $38.26
Mar-2024 $39.40
17 Mar-2025 $40.59
Mar-2026 $41.80
Mar-2027 $43.67
4 Wineworks/Dublin 3,511 $36.00 Aug-2017 $42.00 Net: Pays a full Market
Retail, Suite: 102/103 24.28% $126,396 Aug-2018 $47.07 pro-rata share of See assumption:
Sep-2011 to Aug-2027 $3.00 Sep-2019 $48.25 all reimbursable $4.00 NNN (retail)
192 Months $10,533 Sep-2020 $49.45 expenses.
Sep-2021 $50.69
5 Starbucks 1,575 $45.12 Oct-2021 $50.52 Net: Pays a full Market
Retail, Suite: 104 10.89% $71,064 pro-rata share of See assumption:
Oct-2006 to Sep-2026 $3.76 all reimbursable $4.00 NNN (retail)
240 Months $5,922 expenses.
6 Dr. Kasha Etemadi 3,000 $29.26 Feb-2017 $29.73 Net: Pays a full Market
Office, Suite: 204 20.75% $87,768 Feb-2018 $31.04 pro-rata share of See assumption:
Feb-2014 to Sep-2023 $2.44 Jan-2019 $32.64 all reimbursable $4.00 NNN (retail)
116 Months $7,314 Oct-2020 $34.60 expenses.
Oct-2021 $35.64
Oct-2022 $36.71
Total Occupied SqFt 14,458
Total Available SqFt 0
BEVERLY PLAZA | MISSION VIEJO 17BEVERLY PLAZA 2 6 3 4 2 O S O PA R K W AY | M I S S I O N V I E J O , C A L I F O R N I A BRIAN GARBUTT Senior Vice President License ID# 01215482 (949) 790-3166 bgarbutt@leeirvine.com ALLEN BASSO Senior Vice President License ID# 01215482 (949) 790-3130 abasso@leeirvine.com ERIC DARNELL Vice President CalBRE 01888743 (949) 790-3157 edarnell@leeirvine.com
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