For Sale $4,000,000 Five Tenant Retail with High Volume Starbucks Drive-Thru 5,880 SF 1.12 Ac. 2009-Built ADT 55,000+Cars Monterey Ave. & Dinah Shore Drive 100% Occupied Desert 4.55% Cap Gateway 34300 Monterey Avenue, Palm Desert, CA 92211 Starbucks Drive-Thru Firehouse Subs Interstate Batteries Swiss Donut Perfect Eyebrow Investment REAL ESTATE Done Right James G. Towers Office: 909-335-1735 Managing Director- Towers & Associates Mobile: 909-223-9328 Visit Us at: CA BRE# 01342640 E-Mail: jtowers@live.com www.towersre.com
PRICING DETAILS Starbucks Drive-Thru Address: 34300 Monterey Avenue, Palm Desert, CA 92211 APN: 694-090-017 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: $680.27 Occupancy: 100% Tenants: Starbucks (Drive-Thru), Firehouse Subs, Interstate Batteries, Swiss Donut, & Perfect Eyebrow Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 1
The Investment The Desert Gateway shopping center, located at 34300 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 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 2
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 $2,733.80 $2.10 $1,450.97 $1.12 2% 7/1/2013 4/1/2018 3/31/2023 22.11% None One (1) Sixty (60) month 101 Perfect Eyebrow 650 $1,105.00 $1.70 $728.00 $1.12 3% 12/15/2017 3/31/2023 11.05% $1,833.00 One (1) Sixty (60) month 102 Swiss Donut 800 $1,480.00 $1.85 $496.00 $0.62 * (1) 6/1/2011 6/1/2016 5/31/2021 13.61% $5,000.00 One (1) Sixty (60) month Base Rent Option 1 = Fair Market 103 Firehouse Subs 1,412 $2,626.32 $1.86 $1,575.98 $1.12 0% 12/1/2014 11/1/2019 24.01% $3,925.36 Two (2) Sixty (60) months Base Rent Option 1 = $2,767.52 / Mo. Base Rent Option 2 = Fair Market 104 Starbucks 1,718 $7,726.83 $4.50 $1,771.00 $1.03 * (2) 9/11/2007 10/1/2017 9/30/2032 29.22% None Three (3) Sixty (60) months 10% increase every 5 years Total Monthly 5,880 $15,671.95 $6,021.95 Annualized $188,063.40 $72,263.40 (1) NNN charge increases to $0.77 PSF in June 2019; $0.97 PSF June 2020. (2) Increases 10% every 5 years. Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 3
Static Pro forma STATIC PROFORMA - NET OPERATING INCOME Rentable SF Mo. Rent Mo. Rent PSF Annualized Gross Projected Base Rent Unit 100 - Interstate Batteries 1,300 $2,734 $ 2.10 $ 32,806 Unit 101 - Perfect Eyebrow 650 $1,105 $ 1.70 $ 13,260 Unit 102 - Swiss Donut 800 $1,480 $ 1.85 $ 17,760 Unit 103 - Firehouse Subs 1,412 $2,626 $ 1.86 $ 31,516 Unit 104 - 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) $6.93 15.65% $ 40,752 Insurance $0.68 1.53% $ 3,990 Repairs & Maintenance $1.01 2.29% $ 5,967 Common Utilities $2.15 4.85% $ 12,639 External CAM (Association Fee) $1.28 2.88% $ 7,499 Management Fee $1.22 2.77% $ 7,200 Security / Fire Alarm / Misc. $0.08 0.19% $ 489 Subtotal Reimbursable Expenses $13.36 30.17% $ 78,536 TOTAL EXPENSES $ (78,536) NET INCOME $ 181,791 Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 4
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 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 5
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 2015. 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 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 6
Desert Gateway Palm Desert, CA Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 7
Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 8
Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 9
Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 10
Desert Gateway 34300 Monterey Ave. Palm Desert, CA Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 11
Desert Gateway 34300 Monterey Ave. Palm Desert Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 12
Towers & Associates Jim Towers 1447 Ford Street, Redlands, CA 92374 Office 909-335-1735 Cell 909-223-9328 www.towersre.com CA Broker Lic. # 01342640 Page 13