LA-Z-BOY FURNITURE SINGLE TENANT NNN LEASEHOLD INTEREST - TEMECULA, CALIFORNIA - Offlist
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LA-Z-BOY FURNITURE
SINGLE TENANT NNN
LEASEHOLD INTEREST
CLICK HERE FOR
DRONE VIDEO TEMECULA, CALIFORNIA
OFFERING MEMORANDUM
LA-Z-BOY FURNITURE
±15,311 SF SINGLE TENANT LEASEHOLD INTEREST
4 0 5 5 1 M A R G A R I TA R O A D , T E M E C U L A , C A L I F O R N I A
TABLE OF CONTENTS
executive summary................................. 4
area overview............................................ 6
CHRISTOPHER MALING
Principal
License No: 01025809 property photos....................................... 8
213.618.3824
chris.maling@avisonyoung.com
tenant & lease summary......................10
DAVID MALING confidentiality agreement.................. 12
Principal
License No: 01139115
213.618.3825
david.maling@avisonyoung.com
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CLICK HERE FOR
EXECUTIVE SUMMARY DRONE VIDEO
INVESTMENT SUMMARY
OFFERING PRICE $1,338,000
CAP RATE 11.00%
CURRENT NOI $147,216.00
LEASE STRUCTURE NNN
LEASE START DATE JANUARY 25, 2015
PARCEL NUMBER 910-470-030 & 910-470-036
PROPERTY TYPE RETAIL
BUILDING AREA ±15,311 SF
LAND AREA ±1.08 AC / 47,175 SF
ZONING SP - SPECIFIC PLAN 7
TEMECULA REGIONAL CENTER
YEAR BUILT 2006
The sale is subject to Ground Lessor’s approval of the buyer, not to
be unreasonably witheld.
INVESTMENT HIGHLIGHTS
SUBJECT PROPERTY
• Seasoned Location: Opened & operating successfully since
2004
• Lender Owned REO Sale
• Single Tenant NNN Lease
• Free & Clear of Debt AREA HIGHLIGHTS
• High Yield Leasehold Interest
• The subject property is located in
• Favorable tax benefits with 100% depreciation plus Temecula’s Retail Corridor
additional cost segregation (consult your CPA) benefits
• Outparcel to the Promenade Temecula and
• Average household income within 5-mile radius is $99,189 Commons at Temecula
• Desirable Temecula location with 192,263 people within a • Adjacent to Bel Villaggio I, II & III retail
5-mile radius and ±43,130 VPD on Margarita Road centers
• 12% increases every 5 years with options to extend • Huge local and regional draw
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AREA OVERVIEW POPULATION 1 Mile 3 Mile 5 Mile
HOUSING
1 Mile 3 Mile 5 Mile
2024 Projected Population 12,498 105,341 205,485 2024 Projected Households 4,158 34,671 65,051
2019 Estimated Population 11,859 98,028 192,263 2019 Estimated Households 3,954 32,314 60,952
2010 Census Population 11,128 80,389 164,084 2010 Census Households 3,742 26,614 52,178
Growth 2019-2024 $90,730 $95,939 $99,189 Owner Occupied 53.67% 62.05% 65.67%
TEMECULA is located in southern Riverside County and is Civilian Unemployed 1.87% 2.50% 2.47% Average Household Income $90,730 $95,939 $99,189
a popular destination for tourists due its award-winning winer-
ies, temperate climate, and championship golf courses. Visitors
flock from all around to visit Temecula Valley’s Wine Country,
Polo Club, Hot Air Balloon and Wine Festival as well as its Inter- PROMENADE TEMECULA
national Film Festivals. The City of Temecula boasts its own at-
• REGAL THEATRES & • P.F. CHANG’S • SEARS
tractions with Old Town Temecula hosting multiple events like EDWARDS IMAX • BOX LUNCH • JCPENNY
car shows, Road Runs, and summer weekend entertainment. • APPLE STORE • PANDA EXPRESS • MACYS
• POTTERY BARN • RED ROBIN • BATH & BODY
• WILLIAM SONOMA • YOGURTLAND WORKS
Temecula continues to evolve as well. Its new Uptown Specific • DISNEY STORE • CALIFORNIA PIZZA • EXPRESS
plan is working to add a myriad of uses, including eight-sto- • SEPHORA KITCHEN • ZALES
ry full-service hotels, multi-level residential, and mixed/ com- D • H&M • YARD HOUSE • CLAIRE’S
mercial uses—all of which will only add to the draw of the city R OA • COACH • LAZY DOG BAR • VICTORIA’S SECRET
SUBJECT PROPERTY • JUSTICE • WETZEL’S PRETZELS • FOREVER 21
and service the surrounding Riverside County. In addition, the NG • PAPYRUS • YARD HOUSE
Mt. San Jacinto Community College District purchased two RI • SUNGLASS HUT
five-story office building for $56.5 million which will be con-
verted to classrooms and laboratories and serve to double their
footprint.
Riverside County is one of the largest counties in the United
States in terms of both size and population. It boasts a central
location in Southern California, bordering San Bernardino, Or-
ange and San Diego Counties. This placement makes Riverside
County an important hub that connects businesses to import-
ant markets, ports of entry and key airports, which in turn al-
lows them access to major national and international com-
merce transactions. The railways also work to serve as a major
form of transportation for the workforces of Orange and Los
COMMONS AT TEMECULA
Angeles Counties, with Metrolink transporting commuters to
and from work. • PETCO • BUY BUY BABY
• BARNES & NOBLE • PICTURE PEOPLE
• ULTA BEAUTY • COST PLUS WORLD
• JOANN’S FABRICS MARKET
• FIVE GUYS • NORDSTROM RACK
• TOTAL WINE & • PACIFIC SALES
MORE • PARTY CITY
• DSW SHOE • EL POLLO LOCO
WAREHOUSE • GAMESTOP
• OFFICE DEPOT
MA
RG
AR
ITA
RO
AD
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PROPERTY PHOTOS
D
YR
RN
KEA
RAL
ENE
NG
R I N G R OA
D
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TENANT & GROUND LEASE SUMMARY
TENANT SUB- SUBLEASE GROUND LEASE
TENANT LZBFG of California LLC Lease Year Annual Base Lease Year Ground Lease Net Operating
Rent Expense Income
ADDRESS 40551 Margarita Road
Years 1-5 $318,220.00 Years 11-15 (2015-2020) -($125,440.00) $147,216.00
APPROXIMATE LAND AREA 1.08 AC (47,175.48 SF) (2015-2020) Premium Rent -(45,564.00)
APPROXIMATE GLA 15,311 SF Years 16-20 (2021-2026) -($140,492.00) $148,075.00
Years 6-10 $334,131.00
LEASE COMMENCEMENT January 25, 2015 (2021-2025) Premium Rent -(45,564.00)
LEASE EXPIRATION January 31, 2025 5 Year Option Fair Market Years 21-25 (Jan ‘15-Feb ‘21) -($157,351.00)
(2026-2030) Value Premium Rent -(45,564.00) TBD
SCHEDULED RENT INCREASES 5% Every Five (5) Years
ANNUAL RENT (YEARS 1-5) $318,220.00/ ($21 PSF) 5 Year Option Fair Market 15 year Option (Jan ‘15-Feb ‘21) -($176,233.00) TBD
(2031-2035) Value Premium Rent -(45,564.00)
ANNUAL RENT (YEARS 6-10) $334,131.00 / ($22.45 PSF)
N/A N/A 10 year Option(Jan ‘15-Feb ‘21) -($247,595.00) TBD
OPTIONS TO EXTEND 2 (5 year ) Options Premium Rent -(45,564.00)
OPTION INCREASES Fair Market Rent
LEASE TYPE NNN
GROUND LEASE SUMMARY La-Z-Boy, Inc. is an American furniture manufacturer based in
Monroe, Michigan, that makes home furniture, including upholstered
TENANT Salvesen, Inc. Dba La-Z-Boy Galleries recliners, sofas, stationary chairs, lift chairs and sleeper sofas. The
ADDRESS 40551 Margarita Road company employs more than 11,000 people.
APPROXIMATE LAND AREA 1.08 AC (47,175.48 SF) La-Z-Boy furniture is sold in thousands of retail residential outlets in the
LEASE COMMENCEMENT February 27, 2006 United States and Canada and is manufactured and distributed under
license in other countries including the United Kingdom, Australia,
LEASE EXPIRATION February 26, 2031 Germany, Indonesia, Italy, Japan, Mexico, New Zealand, Turkey and
SCHEDULED RENT INCREASES 12% Every Five (5) Years South Africa.[2] La-Z-Boy holds US and international patents on more
ANNUAL RENT (YEARS 11-15) $125,440.00 / $0.69 PSF than 200 different styles and mechanisms.
PLUS: PREMIUM ANNUAL RENT (3/2016- 2/2031) $45,564.00 / $0.08 PSF The Company sells its products, primarily in the United States and
ANNUAL RENT (YEARS 16-20) $140,492.00 / $0.79 PSF Canada, as well as internationally, to furniture retailers and directly to
consumers through stores that it owns and operates. The Company
ANNUAL RENT (YEARS 21-25) $157,351.00 / $0.88 PSF has a network of approximately 340 La-Z-Boy Furniture Galleries
OPTIONS TO EXTEND 1 (15 yr) + 1 (10 yr) Options stores and over 560 Comfort Studio locations, of which the Company
owns approximately 120 of the La-Z-Boy Furniture Galleries stores.
OPTION INCREASES 12% Every Five (5) Years The Company’s other brands include England, Kincaid, American
Drew and Hammary.
(Source: https://www.wikipedia.org & Reuters)
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CONFIDENTIALITY AGREEMENT
This Offering Memorandum contains select information pertaining to the business and affairs of 40551
Margarita Road, Temecula, CA. It has been prepared by Avison Young. This Offering Memorandum
may not be all-inclusive or contain all of the information a prospective purchaser may desire. The
information contained in this Offering Memorandum is confidential and furnished solely for the
purpose of a review by a prospective purchaser of the Property. It is not to be used for any other
purpose or made available to any other person without the written consent of Seller or Avison Young.
The material is based in part upon information supplied by the Seller and in part upon financial
information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents
makes any representation or warranty, express or implied, as to the accuracy or completeness or
this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied
with respect thereto. Prospective purchasers should make their own projections and form their own
conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum from Avison Young, you agree:
1. The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering
Memorandum or its contents in any fashion or manner detrimental to the interest of the
Seller.
Owner and Avison Young expressly reserve the right, at their sole discretion, to reject any and all
expressions of interest or offers to purchase the Property and to terminate discussions with any
person or entity reviewing this Offering Memorandum or making an offer to purchase the Property
unless and until a written agreement for the purchase and sale of the Property has been fully executed
and delivered.
If you wish not to pursue negotiations leading to the acquisition of 40551 Margarita Road, Temecula,
CA or in the future you discontinue such negotiations, then you agree to purge all materials relating
to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction,
the Property, or information provided herein or in connection with the sale of the Property shall be
limited to those expressly provided in an executed Purchase Agreement and shall be subject to the
terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Avison
Young or any of their affiliates or any of their respective officers, Directors, shareholders, owners,
employees, or agents for any damages, liability, or causes of action relating to this solicitation process
or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or
constitute an indication that there has been no change in the state of affairs of the Property since the
date this Offering Memorandum.
555 S. Flower Street, Suite 3200 | Los Angeles, CA 90071
DAVID MALING CHRISTOPHER MALING EXCLUSIVE ADVISOR:
Principal Principal
License No: 01139115 License No: 01025809
213.618.3825 213.618.3824
david.maling@avisonyoung.com chris.maling@avisonyoung.com
W W W. M A L I N G B A R N E S I N V E S T M E N T S . C O M
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