offering memorandum JIFFY LUBE 3727 AUBURN ST BAKERSFIELD, CA Representative Photo
CONTENTS PROPERTY DETAILS 03 EXECUTIVE SUMMARY 04 05 09 FINANCIAL OVERVIEW TENANT OVERVIEW AREA OVERVIEW LISTED BY Dalton Barnes Senior Associate Dalton.Barnes@matthews.com DIR 214.692.2930 MOB 925.234.1772 LIC # 01984625 (CA) Braden Crockett Associate VP & Director Braden.Crocket@matthews.com DIR 214.692.2040 MOB 714.345.6206 LIC # 01946071 (CA)
3 EXECUTIVE OVERVIEW PROPERTY DETAILS Bite Sized Deal asking price of $1,102,692 Absolute NNN Lease provides for a bond-like investment with no landlord responsibilities during the lease REVITALIZATION PLAN FOR EAST HILLS MALL - BAKERSFIELD, CA Attractive Returns 7.15% initial return with an average return of 7.83% over the base lease term Cash-On-Cash potential for an immediate 7.50% cash-on-cash return with an average of 9.74% cash-on-cash return over the base term with market financing 2% Annual Increases excellent hedge against inflation Recession Resistant Business Model strong historical performance even during economic downturn Attractive Pitched Roof longer estimated useful life LOCATION Dense Population Base and Strong Growth over 110,000 customers in the 3-mile radius with expected 5% growth over the next 5 years Redeveloped East Hills Mall demolition and revitalization plans in the works for a brand new, open-air lifestyle center TENANT Experienced California Jiffy Lube multi-unit operator
FINANCIAL OVERVIEW FINANCIAL OVERVIEW EXECUTIVE SUMMARY Property Name Jiffy Lube LIST PRICE $1,102,692 CAP RATE 7.00% TERM REMAINING ± 11 YEARS Address 3727 Auburn St, Bakersfield, CA 93306 Year Built 1996 GLA Lot Size ± 1,344 SF ± 0.09 Acres ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Rent/PSF Cap Rate 11/17/2017-11/16/2018 $6,444.13 $77,329.52 $57.54 7.00% 11/17/2018-11/16/2019 $6,573.01 $78,876.11 $58.69 7.15% 11/17/2019-11/16/2020 $6,704.47 $80,453.63 $59.86 7.30% 11/17/2020-11/16/2021 $6,838.56 $82,062.70 $61.06 7.44% 11/17/2021-11/16/2022 $6,975.33 $83,703.96 $62.28 7.59% 11/17/2022-11/16/2023 $7,114.84 $85,378.04 $63.53 7.74% 11/17/2023-11/16/2024 $7,257.13 $87,085.60 $64.80 7.90% 11/17/2024-11/16/2025 $7,402.28 $88,827.31 $66.09 8.06% 11/17/2025-11/16/2026 $7,550.32 $90,603.86 $67.41 8.22% 11/17/2026-11/16/2027 $7,701.33 $92,415.93 $68.76 8.38% 11/17/2027-11/16/2028 $7,855.35 $94,264.25 $70.14 8.55% TENANT SUMMARY Tenant Trade Name Jiffy Lube Type of Ownership Fee Simple Lease Guarantor Franchisee Lease Type NNN Roof & Structure Tenant Responsible Original Lease Term 20 years Rent Commencement Date 11/17/2008 Lease Expiration Date 11/16/2028 Term Remaining ± 11 years Increases 2% per Annum Options Four, 5-Year Options 4
TENANT OVERVIEW JIFFY LUBE A leading provider of oil changes and a subsidiary of Shell Oil Company, Jiffy Lube boasts more than 2,100 outlets led throughout North America that are all independently owned by operators. Besides oil changes, Jiffy Lube facilities provide maintenance services for air conditioning, fuel systems, and transmissions. At some of its locations, it also performs inspections and emissions testing, repairs windshields and rotates tires. Serving about 22 million customers annually, Jiffy Lube caters to several fleet management firms such as Donlen, Emkay, Voyager and PHH. Heartland Automotive Services, Inc. is a franchisee company that operates over 530 Jiffy Lube locations in the United States. STRATEGY Jiffy Lube focuses on its four key areas of preventative maintenance service: change, inspect, check/fill, and clean. The company s extensive technician training program has made Jiffy Lube an Automotive Service Excellence (ASE) Accredited Training Provider. With a focus on reuse, Jiffy Lube makes a point to collect more used oil than any of its competitors in North America. The oil is then refined and used for making concrete, generating electricity, and heating asphalt to pave roads. COMPANY TRADE NAME JIFFY LUBE INTERNATIONAL, INC. HEADQUARTERED HOUSTON, TEXAS WEBSITE WWW.JIFFYLUBE.COM YEAR FOUNDED 1979 NO. OF LOCATIONS ± 2,100 GEOGRAPHIC OUTREACH Jiffy Lube has an approximate 2,100 franchised service centers in North America and Canada. 5
the offering PARCEL MAP Property Name Property Address Jiffy Lube 3727 Auburn St Bakersfield, CA 93306 Assessor s Parcel Number 130-210-36 College Blvd ± 40,116 Site Description Number of Stories One Year Built/Renovated 1996 GLA ± 1,344 SF Lot Size ± 0.09 Acres (3,920 SF) Type of Ownership Fee Simple Landscaping Professional Topography Generally Level
Colonel Howard Nichols Elementary School College Heights Elementary School California State Route 178 ± 63,000 ADT Bakersfield Adventist Academy Compton Junior High School Heritage Christian Schools surrounding tenants 7
8 8 AREA OVERVIEW BAKERSFIELD, CA Sitting on the southern end of the Central Valley within the Kern County boundaries, Bakersfield is a city in the San Joaquin Valley. It is equal distance to Los Angeles and Fresno. As a primarily agricultural and industrial town, Bakersfield relies primarily on agriculture, petroleum extraction and refining, and manufacturing as its major economic staples. Irrigated agriculture, mostly cotton, orchard crops and grapes lie to the north whereas the large oil industry supported by nearby fields operates in and around the city. The historic and major industries of the city have related to Kern County s two main industries of oil and agriculture. Kern County is the most productive oil county in America, with around 10% of the nation s domestic production. Ranking in the top five most productive agricultural counties in the nation, Kern County is a major producer of grapes, citrus, almonds, carrots, alfalfa, cotton, and roses. Bakersfield itself serves as the home for both corporate and regional headquarters of companies engaged in these industries. Bakersfield s proximity to the Southern California area has attracted businesses looking for an affordable location, thereby improving the economy. Several companies have moved to Bakersfield because of its inexpensive land and access to the rest of America, as well as international sports in both Los Angeles and Oakland. Other companies have opened regional offices and non-oil/agricultural businesses because of Bakersfield s business-friendly policies, such as having no local utility or inventory taxes.
9 9 DEMOGRAPHICS POPULATION 1 Mile 3 Mile 5 Mile 2023 Projection 16,501 110,697 196,452 2018 Estimate 16,296 108,038 190,992 Growth 2018-2023 1.26% 2.46% 2.86% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2023 Projection 5,854 32,644 60,584 2018 Estimate 5,775 31,819 58,858 Growth 2018-2023 1.37% 2.59% 2.93% INCOME 1 Mile 3 Mile 5 Mile 2018 Est. Average Household Income $82,804 $59,911 $56,066 Top Employers
10 Discovering Bakersfield Bakersfield has been known for being a fast-growing city and has seen its population more than triple in the past 30 years. Given that it is the largest city with the lowest sales tax in California, the area has particularly been attracting Southern Californians looking to escape the high costs and bustle of the L.A. Basin. Due to the continuous population growth, Bakersfield has engaged in new retail and housing development west of town as well as the addition of a new riverfront park. The large bluff and plateau, which lies east of the city, has also been under continued development. Home to California State University, Bakersfield, the city has access to an educated and skilled workforce. Each year, CSU Bakersfield continues to help shape the future of Kern County through its graduation of more than 2,000 alumni. As the nation s top city for family activities and fun, Bakersfield has a number of cultural assets including the Kern County Museum and the Buena Vista Museum of Natural History. Events held within the city include one of the California s Scottish Games and Clan Gatherings, the Greek Festival, the Low-rider National in the Kern County Fairgrounds, drag racing events at the Auto Club Famous Raceway and Kern County Fair. Other recreational opportunities in the area include whitewater rafting, rock climbing, mountain biking, fossil collecting and skiing in the southern Sierra Mountain range. 57.8% Homeownership rate 30.6 Median Age $61,039 Median Household Income
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Jiffy Lube located at 3727 Auburn St, Bakersfield, CA 93306 ( Property ). It has been prepared by Matthews Real Estate Investment Services. 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 Matthews Real Estate Investment Services. 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 of 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 for the Property, 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 Matthews Real Estate Investment Services 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 the Property 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 Matthews Real Estate Investment Services 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.
exclusively listed by Dalton Barnes Senior Associate Dalton.Barnes@matthews.com DIR 214.692.2930 MOB 925.234.1772 LIC # 01984625 (CA) Braden Crockett Associate VP & Director Braden.Crocket@matthews.com DIR 214.692.2040 MOB 714.345.6206 LIC # 01946071 (CA) 3727 AUBURN ST BAKERSFIELD, CA