OFFERING MEMORANDUM 1605 S. San Jacinto Ave | San Jacinto, CA - Matthews Real ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
RITE AID
1605 S. San Jacinto Ave | San Jacinto, CA
OFFERING MEMORANDUM
INVESTMENT HIGHLIGHTS
• Adjacent to Aldi and Walmart Supercenter
• Dense Southern California Location
• Prototype store format - 16,730 square feet on 1.75 acres
• Drive-thru location with excellent Signage and a Garden Center building extension
• Rite Aid recently extended their lease showing a strong commitment to the site
• Rent Bumps in each five-year option period
• Lease corporately guaranteed by Rite Aid (NYSE: RAD)
• 161,154 residents within 5 miles
• Thousands of residential units in development in San Jacinto Area
• Nearly 60% population growth projected within 10 years
• Delivered free and clear of debt or may be purchased by assuming existing financing (call broker for details)
exc l u si v ely l i s t ed by
J O R DA N GO M E Z El Wa rn er Davi d Maloy Bi l l P ed er s en
Associate EVP & National Director Associate Senior Associate
jordan.gomez@matthe ws.co m e l.warne r@ ma tthe ws.com da v id. ma loy @ ma tthe ws.com bill.p ed ers en@matthews .c o m
D IR 949.432 .4503 D IR 949.873.0507 DIR 949.777. 598 9 D IR 949.432.450 1
MO B 951.2 64.5994 MOB 8 5 8 .7 52. 3078 MOB 31 0. 38 8 .078 8 M O B 831.246.0 646
™
LIC # 02 008809 (CA) LIC # 018 90271 ( CA ) LIC # 01 98 78 44 ( CA ) LIC # 0 197570 0 (CA)
Future residential
development
Future residential
development
Subject Property
Rite Aid, San Jacinto, CA | 3
Loan Assumption
Financial overview Loan Type
Current Annual Debt Service
Life Insurance Co.
$221,857
Balance $2,100,000
Interest Rate 6.26%
Amortization 25 Years
Term 25 Years
Origination Date April-07
1605 S. San Jacinto Ave, Maturity Date April-32
San Jacinto, CA 17050 Annualized Operating Data
Annual Rent Monthly Rent Cap Rate
Current $308,526 $25,710.50 6.70%
Option 1 $370,231 $30,852.58 8.05%
Option 2 $386,961 $32,246.75 8.41%
List Price Cap Rate Option 3 $403,691 $33,640.92 8.78%
Option 4 $420,421 $35,035.08 9.14%
$4,600,000 6.70% Option 5 $437,151 $36,429.25 9.50%
Option 6 $453,881 $37,823.42 9.87%
Tenant Summary
Year Built Square Footage Tenant Trade Name Rite Aid Pharmacy
Type of Ownership Fee Simple
1998 ± 16,730
Lease Guarantor Corporate
Lease Type NN
Roof and Structure Landlord Responsible
Lot Size Original Lease Term 20 Years
Lease Commencement Date 5/1/1999
± 1.75 AC
Lease Expiration Date 4/30/2025
Term Remaining on Lease ± 6.5 Years
Increases Fixed
Options Six, 5-Year Options
4 | Offering Memorandum
Tenant overview
Property Name Rite Aid
Parent Company Trade Name Rite Aid Corporation (NYSE: RAD)
Ownership Public
Credit Rating (S&P’s) B
Revenue $32.84 B
Net Income $4.053 M
No. of Locations ± 2,550
No. of Employees ± 88,000
Headquartered Camp Hill, Pennsylvania
Website www.RiteAid.com
Year Founded 1962
TENANT OVERVIEW
Rite Aid is one of the largest retail drugstore chains in the United States based on both revenue and the number of stores. Rite Aid currently operates 2,550 stores
in 19 states across the country.
RITE AID DIFFERENTIATOR
Rite Aid differentiates stores from other national chain drugstores, in part, through the wellness+ Rewards loyalty program, Wellness format stores, innovative
merchandising, private brands and strategic partnership with GNC, a leading retailer of vitamin and mineral supplements. Rite Aid offers a wide variety of products
through a portfolio of private brands, which contributed approximately 18.7% of the front-end sales in fiscal 2018.
Rite Aid, San Jacinto, CA | 5
surrounding tenants
Ramona Expressway ±17,500 ADT
Future residential
development
Subject Property
±1
7
,00
0A
DT
6 | Offering Memorandum
Hemet Valley
medical Center
Future residential
development
Commonwealth CROSSING
Future ±40,000 SF Shopping Center
Future residential
development Subject Property
±17
,000
ADT
Rite Aid, San Jacinto, CA | 7
area overview
S an Jac i n to, CA
Part of Riverside County, San Jacinto is located at the north end of the San Jacinto
Valley. It is one of the oldest cities in Riverside County and sits within the San Jacinto
Mountains, within the San Jacinto Valley, which has become an ideal location for
snowbirds. It is within close proximity to larger cities while still maintaining that
small town feeling. It is also within driving distance of several beach and wineries.
There are great hiking trails and outdoor activities that will give a great view of
everything California has to offer. The residential area is looking to have extreme
growth in the following year with the addition of over 40,000 units across the area.
P R O PERT Y demogr aphic s
POPULATION 1-Mile 3-Mile 5-Mile HOUSEHOLDS 1-Mile 3-Mile 5-Mile
2023 Projection 16,097 120,819 176,370 2023 Projection 4,903 40,333 59,945
2018 Estimate 14,825 110,990 161,961 2018 Estimate 4,598 37,711 56,031
Growth 2018 - 2023 8.58% 8.86% 8.90% Growth 2018 - 2023 6.64% 6.95% 6.99%
INCOME 1-Mile 3-Mile 5-Mile
2018 Est. Average
$48,536 $52,992 $56,676
8 | Offering Memorandum Household Income
Riverside County
With rivers, mountain peaks, deserts and fertile valleys, Riverside County offers
diversity that few locations can’t match. More than two million people live in
Riverside County, taking advantage of affordable housing, nearby beaches,
mountains, hiking and bike trails, the Wine Country near Temecula and resorts
that offer an oases in the desert.
The county is working to diversify beyond the housing industry that has driven
the region’s economy for years. Transportation corridors – highways, airports
and rail lines – support Southern California’s shipping connection to Asia, a vital
link for California and the rest of the nation.
California’s fourth largest county by population is expanding its economy,
working to make Riverside County as business-friendly as possible and using
health and recreation strategies to make the county a healthier place for
residents. Each year, millions visit the county to take advantage of the glorious
desert winter, attend the Riverside County Fair and National Date Festival, the
Balloon and Wine Festival, the Palm Springs International Film Festival, the
Coachella and Stagecoach mega-concerts, the Paribas Open at the Indian Wells
Tennis Center and the Humana Challenge, the golf tournament formerly known
as the Bob Hope Classic. All those, combined with a rich cultural heritage and
frontier history, make Riverside County a great place live, work or visit.
Rite Aid, San Jacinto, CA | 9
Residential Development
All Star Equities
309 Units Dolphin Capital
324 Units
Steve Slaughter
The villages 263 Units Corporate
Headquarters
2,022 Units
McCleish Group
274 Units
Ella MAy
Park Hill St. Lyon
112 Units Units
766 Units 91 Units
Myers Group ±17,000 ADT
166 Units
CNH Homes
238 Units
Subject Property
10 | Offering Memorandum“
“Residential and retail development is on fire in San Jacinto
“San Jacinto is definitely one of the hottest retail markets around and experiencing attention from a re-
gional perspective. Our housing starts are continuing to set records for us this calendar year that exceed
those over the past 10 years, which is a great economic indicator for our retail recruitment success.”
“The City’s budget is healthy and San Jacinto is showing strong economic growth. The residential and retail
market in San Jacinto is hot; it’s the perfect storm with great weather”
“Years of prudent financial leadership by the City Council and past administration have given San Jacinto a
strong foundation to catapult the City into a strong development phase…Our fresh economic development
perspective has been embraced by the residential and retail developers, who are knocking down our doors
to come to town.”
- City Manager, Rob Johnson
Rite Aid, San Jacinto, CA | 11M i d C ounty Park way
The Mid County Parkway is a proposed 16-mile transportation corridor designed
to relieve east-west traffic congestion in the San Jacinto and Perris areas and help
address transportation needs through 2040. A new east-west route is proposed
between Interstate 215 and State Route 79.
Major transportation routes in southwestern Riverside County are experiencing
significant traffic congestion. Traffic volumes near the proposed Mid County
Parkway are projected to double in some segments and triple in other segments.
Another east-west transportation link, such as the Mid County Parkway, is essential
to reduce traffic congestion and enhance the quality of life for the area. The Mid
County Parkway will provide connections to Interstate 215, State Route 79 and
multimodal bus and rail facilities that support Metrolink’s 91/Perris Valley Line.
The Mid County Parkway is in the expenditure plan for Measure A, the voter-
approved half-cent sales tax for transportation improvements in Riverside County.
Measure A will fund a portion of the project.
Work is underway now for final design of the Interstate 215 Placentia Avenue
Interchange, the first of several design packages for the project.
RCTC also is working to fulfill its environmental mitigation commitments:
• Under the Multi-Species Habitat Conservation Plan, RCTC has acquired more
than 177 acres of land to mitigate project impacts to sensitive plants and
wildlife.
• RCTC is designing a site to mitigate impacts to aquatic resources in order to
obtain a permit from the U.S. Army Corps of Engineers.
• RCTC also is preparing a Cultural Landscape Study to mitigate project impacts
to historic properties.C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T
This Of f e r ing Me m o r a n du m co n t a i n s s e l e ct inform ati on pertai ni ng to the busi ness and affai rs of Rite Aid located at 1605 S. San Jacinto Ave, San Jacinto, CA
17050 (“ P r o p er t y”) . It h a s be e n p r e p a r e d by Matthews Real E state Investm ent Servi c es. Thi s O fferi ng M emoran d u m may n ot b e all-in clu s ive or con t ain
all of t he inf o r ma t i o n a p r o s p e ct i v e p u r ch a s er m ay desi re. The i nform ati on c ontai ned i n thi s O fferin g M emoran d u m is con fid en t ial an d fu rn is h ed
sole ly f o r t he p ur p o s e o f a r e v i e w by a p r o spec ti ve purc haser of the Property. It i s not to be used for an y ot h er pu rpos e or mad e availab le t o an y
o th e r p e r s o n w it h o u t t h e w r i t t e n co n s e n t o f Sel l er or Matthews Real E state Investm ent Servi c es. Th e mat erial is b as ed in part u pon in format ion
su p p lie d b y t he S e l l e r a n d i n p a r t u p o n f i n a n ci al i nform ati on obtai ned from sourc es i t deem s rel i able. Own er, n or t h eir officers , employees , or agen t s
makes a ny r e p r es e n t a t i o n o r w a r r a n t y, e x p r ess or i m pl i ed, as to the ac c urac y or c om pl eteness of t h is Offerin g M emoran d u m or an y of it s con t en t s
and no leg a l lia b il i t y i s a s s u m e d o r s h a l l be im pl i ed wi th respec t thereto. Prospec ti ve purc hasers s h ou ld make t h eir own project ion s an d form t h eir
o wn c o nc lusio ns wi t h o u t r e l i a n ce u p o n t h e materi al c ontai ned herei n and c onduc t thei r own due diligen ce.
By a c kno w le d g ing y o u r r e ce i p t o f t h i s O f f e r ing Mem orandum for the Property, you agree:
1. T he Of f er in g M e m o r a n du m a n d i t s co ntents are c onfi denti al ;
2. Yo u w ill hol d i t a n d t r e a t i t i n t h e s t r i c test of c onfi denc e; and
3. Yo u w ill no t , di r e ct l y o r i n di r e ct l y, di sc l ose or perm i t anyone el se to di sc l ose thi s O fferi n g M emoran d u m or it s con t en t s in an y fas h ion or
ma nner d e t r i m e n t a l t o t h e i n t e r e s t o f the Sel l er.
Owne r a nd Ma t t h e w s Re a l Es t a t e In v e s t m e nt Servi c es expressl y reserve the ri ght, at thei r sol e d is cret ion , t o reject an y an d all expres s ion s of
inter est o r o f f e r s t o p u r ch a s e t h e P r o p e r t y a n d to term i nate di sc ussi ons wi th any person or enti ty reviewin g t h is Offerin g M emoran d u m or makin g an
o f f er t o p ur c ha s e t h e P r o p e r t y u n l e s s a n d u n ti l a wri tten agreem ent for the purc hase and sal e of the Propert y h as b een fu lly execu t ed an d d elivered .
If y ou w ish no t t o p u r s u e n e g o t i a t i o n s l e a di n g to the ac qui si ti on of the Property or i n the future you d is con t in u e s u ch n egot iat ion s , t h en you agree
to p ur g e a ll ma t e r i a l s r e l a t i n g t o t h i s P r o p e rty i nc l udi ng thi s O fferi ng Mem orandum .
A p r o s p ec t iv e p ur ch a s e r ’s s o l e a n d e xcl u s i v e ri ghts wi th respec t to thi s prospec ti ve transac ti on, th e Propert y, or in format ion provid ed h erein or in
con ne c t io n w it h th e s a l e o f t h e P r o p e r t y s h al l be l i m i ted to those expressl y provi ded i n an exec u t ed Pu rch as e Agreemen t an d s h all b e s u b ject t o
th e t e r ms t her e o f. In n o e v e n t s h a l l a p r o s p ec ti ve purc haser have any other c l ai m s agai nst Sel l er or M at t h ews Real Es t at e I n ves t men t Services or
any o f t heir a f f ilia t e s o r a n y o f t h e i r r e s p e ct ive offi c ers, Di rec tors, sharehol ders, owners, em pl oyee s , or agen t s for an y d amages , liab ilit y, or cau s es
o f act io n r ela t ing t o t h i s s o l i ci t a t i o n p r o ce s s or the m arketi ng or sal e of the Property.
This Of f e r ing Me m o r a n du m s h a l l n o t be de e m ed to represent the state of affai rs of the Property or con s t it u t e an in d icat ion t h at t h ere h as b een n o
ch ang e in t he s t a t e o f a f f a i r s o f t h e P r o p e r t y si nc e the date thi s O fferi ng Mem orandum .RITE AID 1605 S. San Jacinto Ave | San Jacinto, CA e xc lu si vely lis ted by JOR DA N G O ME Z E l Wa rn er Davi d Maloy Bi ll P ed er s en Associate EVP & National Director Associate Senior Associate jordan.gomez@matthe ws.co m e l.warne r@matthe ws.com da v id. ma loy @ ma tthe ws.com bill. ped ers en@matthews .c o m DI R 949.432 .4503 D IR 949.8 73.0507 DIR 949.777. 598 9 DIR 94 9.432.450 1 MOB 951.2 64.5994 MOB 8 5 8 .752.3078 MOB 31 0. 38 8 .078 8 MOB 8 3 1.246.0 646 LI C # 02 008809 (CA) LIC # 018 90271 (CA ) LIC # 01 98 78 44 ( CA ) LIC # 0197570 0 (CA) 14 | Offering Memorandum
You can also read
