EXCLUSIVE NET-LEASED OFFERING
EXCLUSIVE NET-LEASED OFFERING
Orchard Supply Hardware and 99-Cents Only Stores 550 and 700 North 11th Avenue Hanford, CA 93230 Offering Summary Price
$11,950,000
Current Net Operating Income Cap Rate
$716,939 6.00%
Gross Leasable Area (GLA) Price/SF
102,206 $116.92
Down Payment
$4,182,500
Cash on Cash Return
5.04%
Year Built
1994
Lot Size
11.59
Annualized Operating Data
Tenants
Orchard Supply Hardware & 99-Cents Only Stores
Lease Type
Double Net
Lease
09/30/1994
Lease Expiration
09/29/2019
Lease Term Options
25 Years Four, Five-Year Options
Offices Nationwide
Investment Overview This is an opportunity to acquire at less than replacement costs, the two anchor-tenants, Orchard Supply Hardware (Lowe's Companies, Inc.) and 99-Cents Only Stores, of the "Hanford Towne Center" community shopping center. The 226,000-square foot Hanford Town Center has a dominant Main & Main location in the center of Hanford. Its location is superior to the newer big box and lifestyle centers located on the north/west end of town. Orchard Supply Hardware, occupies a free-standing 43,790-square foot building, and sits on an exceptionally large 5.56 acre parcel of land. In 2013, as part of the Orchard Supply Hardware bankruptcy, Lowe's Companies Inc. negotiated a rent reduction in exchange for their guarantee of Lease. The current annual rental rate is only $8.00/SF/Year, with a 5% rent escalation at each of the (4) five-year renewal option periods, beginning in September 2019. The in-line building, originally occupied by Albertsons, is Hanford Towne Centre's other major anchor space, a 58,416 square foot building, sitting on another large 5.44 acre parcel of land. In 2008, 99 Cents Only Stores purchased the leasehold interest in the building and has made considerable interior and exterior alterations. Improvements included a dividing wall, signs, doors, glass, and HVAC system improvements, all at 99 Cents Only's expense. The current annual rental rate has been $6.49/SF/Year since origination in 1984, with a scheduled 25% rent escalation during the five-year renewal option period, beginning in October 2019.
750 Battery Street, Fifth Floor San Francisco, CA 94111 • Tel: (415) 963-3000 Fax: (415) 963-3010
www.marcusmillichap.com
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap (Activity ID: V0020451 Property ID: 1955799)
550 and 700 North 11th Avenue • Hanford, CA 93230
Investment Highlights
6% CAP Rate on Low Rents of $7.13 Ave. Per Square Foot
100% Leased to Orchard Supply Hardware (Lowe's Guarantee) & 99-Cents Only Stores
Anchor Tenants to Community Center
5 Years Remaining on 25 Year NN Leases
Delivered Free and Clear of Debt
15% Rent Increases with 2019 Options
Only $117 Cost Per Square Foot
11 Acres of Land
Brad Pennington
John Garrett
First Vice President Investments Member National Retail Group Tel: (415) 625-2130 Fax: (415) 449-6680 [email protected] www.marcusmillichap.com/BradPennington License: CA 00599791
Associate Tel: (415) 963-3000 Fax: (415) 963-3010 [email protected] www.marcusmillichap.com/JohnGarrett License: CA 01421403
Exclusively Listed By: This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap (Activity ID: V0020451 Property ID: 1955799)
Orchard Supply Hardware and 99-Cents Only Stores 550 and 700 North 11th Avenue Hanford, CA 93230 Offering Summary Price
$11,950,000
Current Net Operating Income Cap Rate
$716,939 6.00%
Gross Leasable Area (GLA) Price/SF
102,206 $116.92
Down Payment
$4,182,500
Cash on Cash Return
5.04%
Year Built
1994
Lot Size
11.59
Annualized Operating Data
Tenants
Orchard Supply Hardware & 99-Cents Only Stores
Lease Type
Double Net
Lease
09/30/1994
Lease Expiration
09/29/2019
Lease Term Options
25 Years Four, Five-Year Options
Offices Nationwide
Investment Overview This is an opportunity to acquire at less than replacement costs, the two anchor-tenants, Orchard Supply Hardware (Lowe's Companies, Inc.) and 99-Cents Only Stores, of the "Hanford Towne Center" community shopping center. The 226,000-square foot Hanford Town Center has a dominant Main & Main location in the center of Hanford. Its location is superior to the newer big box and lifestyle centers located on the north/west end of town. Orchard Supply Hardware, occupies a free-standing 43,790-square foot building, and sits on an exceptionally large 5.56 acre parcel of land. In 2013, as part of the Orchard Supply Hardware bankruptcy, Lowe's Companies Inc. negotiated a rent reduction in exchange for their guarantee of Lease. The current annual rental rate is only $8.00/SF/Year, with a 5% rent escalation at each of the (4) five-year renewal option periods, beginning in September 2019. The in-line building, originally occupied by Albertsons, is Hanford Towne Centre's other major anchor space, a 58,416 square foot building, sitting on another large 5.44 acre parcel of land. In 2008, 99 Cents Only Stores purchased the leasehold interest in the building and has made considerable interior and exterior alterations. Improvements included a dividing wall, signs, doors, glass, and HVAC system improvements, all at 99 Cents Only's expense. The current annual rental rate has been $6.49/SF/Year since origination in 1984, with a scheduled 25% rent escalation during the five-year renewal option period, beginning in October 2019.
750 Battery Street, Fifth Floor San Francisco, CA 94111 • Tel: (415) 963-3000 Fax: (415) 963-3010
www.marcusmillichap.com
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap (Activity ID: V0020451 Property ID: 1955799)
550 and 700 North 11th Avenue • Hanford, CA 93230
Investment Highlights
6% CAP Rate on Low Rents of $7.13 Ave. Per Square Foot
100% Leased to Orchard Supply Hardware (Lowe's Guarantee) & 99-Cents Only Stores
Anchor Tenants to Community Center
5 Years Remaining on 25 Year NN Leases
Delivered Free and Clear of Debt
15% Rent Increases with 2019 Options
Only $117 Cost Per Square Foot
11 Acres of Land
Brad Pennington
John Garrett
First Vice President Investments Member National Retail Group Tel: (415) 625-2130 Fax: (415) 449-6680 [email protected] www.marcusmillichap.com/BradPennington License: CA 00599791
Associate Tel: (415) 963-3000 Fax: (415) 963-3010 [email protected] www.marcusmillichap.com/JohnGarrett License: CA 01421403
Exclusively Listed By: This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap (Activity ID: V0020451 Property ID: 1955799)
