Desert. Gateway. For Sale $4,000,000. Cap. 100% Occupied 4.55% Monterey Avenue, Palm Desert, CA Five Tenant Retail with High Volume

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1 For Sale $4,000,000 Five Tenant Retail with High Volume Starbucks Drive-Thru 5,880 SF 1.12 Ac Built ADT 55,000+Cars Monterey Ave. & Dinah Shore Drive 100% Occupied Desert 4.55% Cap Gateway Monterey Avenue, Palm Desert, CA Starbucks Drive-Thru Firehouse Subs Interstate Batteries Swiss Donut Perfect Eyebrow Investment REAL ESTATE Done Right James G. Towers Office: Managing Director- Towers & Associates Mobile: Visit Us at: CA BRE#

2 PRICING DETAILS Starbucks Drive-Thru Address: Monterey Avenue, Palm Desert, CA APN: Price: $4,000,000 Annual Net Operating Income: $181,791 *See Pro forma Cap Rate: 4.55% Buildings: 1 Year Built: 2009 Building Size (SF): 5,880 Price per Square Foot: $ Occupancy: 100% Tenants: Starbucks (Drive-Thru), Firehouse Subs, Interstate Batteries, Swiss Donut, & Perfect Eyebrow Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA Office Cell CA Broker Lic. # Page 1

3 The Investment The Desert Gateway shopping center, located at Monterey Avenue in Palm Desert, California, consists of approximately 5,880 square feet of quality retail space in a single-story building. Constructed in 2009, this five-tenant, 100% occupied, triple-net leased investment features a high-volume Starbucks Coffee drive-thru restaurant as its anchor tenant. Starbucks renewed their lease on October 1, 2017 for a 10-year term, showing a strong commitment to this location. In addition to Starbucks, the center has an excellent tenant mix that includes Firehouse Subs, Interstate Batteries, Swiss Donut, and Perfect Eyebrow. The shopping center has a prominent location with good commercial exposure and excellent ingress and egress on both Monterey Avenue and Dinah Shore Drive. The center is situated on a 1.12 acre pad site to the dominant retail power center anchored by a Sam s Club, Walmart, and Kohl s. The property is surrounded by a dense population base within masterplanned residential communities and country clubs. The Desert Gateway shopping center is an outstanding 1031 Exchange opportunity with a stable income and ease of management. Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA Office Cell CA Broker Lic. # Page 2

4 Rent Roll Rentable SF Rent Monthly Annual Original Extension End % Bldg. Security Remaining Options to Renew Suite Tenant (DBA) Per Lease Per Month PSF NNN PSF Increases Start Date Date Date Per Lease Deposit Comments 100 Interstate Batteries 1,300 $2, $2.10 $1, $1.12 2% 7/1/2013 4/1/2018 3/31/ % None One (1) Sixty (60) month 101 Perfect Eyebrow 650 $1, $1.70 $ $1.12 3% 12/15/2017 3/31/ % $1, One (1) Sixty (60) month 102 Swiss Donut 800 $1, $1.85 $ $0.62 * (1) 6/1/2011 6/1/2016 5/31/ % $5, One (1) Sixty (60) month Base Rent Option 1 = Fair Market 103 Firehouse Subs 1,412 $2, $1.86 $1, $1.12 0% 12/1/ /1/ % $3, Two (2) Sixty (60) months Base Rent Option 1 = $2, / Mo. Base Rent Option 2 = Fair Market 104 Starbucks 1,718 $7, $4.50 $1, $1.03 * (2) 9/11/ /1/2017 9/30/ % None Three (3) Sixty (60) months 10% increase every 5 years Total Monthly 5,880 $15, $6, Annualized $188, $72, (1) NNN charge increases to $0.77 PSF in June 2019; $0.97 PSF June (2) Increases 10% every 5 years. Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA Office Cell CA Broker Lic. # Page 3

5 Static Pro forma STATIC PROFORMA - NET OPERATING INCOME Rentable SF Mo. Rent Mo. Rent PSF Annualized Gross Projected Base Rent Unit Interstate Batteries 1,300 $2,734 $ 2.10 $ 32,806 Unit Perfect Eyebrow 650 $1,105 $ 1.70 $ 13,260 Unit Swiss Donut 800 $1,480 $ 1.85 $ 17,760 Unit Firehouse Subs 1,412 $2,626 $ 1.86 $ 31,516 Unit Starbucks 1,718 $7,727 $ 4.50 $ 92,722 Reimbursed NNN Expenses (Based on Actuals) $72,263 Subtotal Potential Gross Income 5,880 $ 260,327 Vacancy & Collection Loss 0.00% $ - EFFECTIVE GROSS INCOME: $ 260,327 OPERATING EXPENSES PER SF % EGI TOTAL Real Estate Taxes (2018 actual) $ % $ 40,752 Insurance $ % $ 3,990 Repairs & Maintenance $ % $ 5,967 Common Utilities $ % $ 12,639 External CAM (Association Fee) $ % $ 7,499 Management Fee $ % $ 7,200 Security / Fire Alarm / Misc. $ % $ 489 Subtotal Reimbursable Expenses $ % $ 78,536 TOTAL EXPENSES $ (78,536) NET INCOME $ 181,791 Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA Office Cell CA Broker Lic. # Page 4

6 Tenant Profile Starbucks Corporation Starbucks Corporation (Starbucks), is the world s #1 specialty coffee retailer. Incorporated on November 4, 1985, Starbucks is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company purchases and roasts coffees that it sells, along with handcrafted coffee, tea and other beverages and a range of fresh food items, including snack offerings through Company-operated stores. The company offers its products under the Starbucks, Teavana, Tazo, Seattle s Best Coffee, Evolution Fresh, La Boulage, Ethos, Starbucks VIA, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Discoveries Iced Café Fabores brand names. Market Cap: S & P Rating: A- Revenue (2017): $79.66 Billion $22.3 Billion Employees (2017): 277,000 Number of Stores (2018): 28,218 Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA Office Cell CA Broker Lic. # Page 5

7 Tenant Profile Firehouse Subs Firehouse Subs is a national sandwich franchise with over 1,100 locations in 44 states and abroad. Firehouse Subs generated $715 million in system-wide revenue last year. Founded in 1994 by two firefighter brothers, the Florida-based brand has added more than 350 locations since This year Firehouse Subs earned a spot on Forbes 2018 ranking as the #4 best franchise to buy. Tenant Profile Interstate Batteries Interstate Batteries is a privately owned company that markets automotive batteries through independent distributors. This independently owned and operated Palm Desert distributor features products for: cars and trucks; commercial trucks and equipment; marine; recreational vehicles; sealed lead-acid; lawn and garden; motorcycles and power sports; golf carts; household and electronics; mobile devices and chargers and jump starters. Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA Office Cell CA Broker Lic. # Page 6

8 Desert Gateway Palm Desert, CA Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA Office Cell CA Broker Lic. # Page 7

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12 Desert Gateway Monterey Ave. Palm Desert, CA Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA Office Cell CA Broker Lic. # Page 11

13 Desert Gateway Monterey Ave. Palm Desert Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA Office Cell CA Broker Lic. # Page 12

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