72636
twentynine palms highway
TWENTYNINEPALMS, CA 92277
C O R P O R AT E G U A R A N T E E D N E T L E A S E D I N V E S T M E N T
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
72636
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
twentynine palms highway
TWENTYNINE PALMS, CA 92277
KYLE GULOCK
Managing Director
(310) 492-8416
[email protected]
Lic.#01861385
MATT KRAMER
Associate
(424) 653-1803
[email protected]
Lic.#01201641
JOSHUA BERGER
Associate
(424) 653-1834
[email protected]
Lic.#01201641
CHARLES DUNN COMPANY
1925 Century Park East, Suite 2350
Los Angeles, CA 90067
(310) 312-1800
Lic. #01201641
3
PROPERTY DESCRIPTION
Parcel Map • Property Maps • Aerial Map • Investment Offering Summary •
Financial Analysis • Property Images
12
TENANT OVERVIEW
Del Taco
14
MARKET OVERVIEW
Locations • Economy & Education • Notable Locations • Property Demographic Report
DISCLAIMER
© Charles Dunn Company, Inc. These materials are based on information and content provided by others whichZ we believe are accurate. No guarantee, warranty or representation is made by the Charles Dunn Company or its personnel, and all interested parties must independently verify its
accuracy and completeness. As well, any projections, assumptions, opinion, or estimates are used for example only and do not represent the current or future performance of the identified property. Your tax, financial, legal and toxic substance advisors should conduct a careful investigation of the
property and its suitability for your needs, including land use limitations. BRE Lic. #01201641ZZZZ
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
Property Description
Property Description
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
Charles Dunn Company is pleased to present an Exclusive Investment for a single-tenant retail fast food building located at 72636 Twentynine Palms Highway, Twentynine
Palms, CA 92277 (the “Property”). It is currently leased to Del Taco (“Tenant”).
Property Description
72636 Twentynine Palms Highway is a freestanding single-tenant retail building with a drive-thru consisting of 2,662 SF. The Property is located on 28,314 SF of land on a highly
trafficked commercial retail corridor. The Property is fully occupied by Del Taco. There is direct ingress and egress from Twentynine Palms Highway. The building, exterior
parking lot and landscaping have been exceptionally maintained by the tenant.
PROPERTY ADDRESS
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
APN
0618-141-12
0618-141-08
0618-141-09
OWNERSHIP
Private ownership
LOCATION
Mid-block of a retail corridor
FRONTAGE
Approximately ±98 feet on Twentynine Palms
Highway
LAND SIZE
28,314 square feet
(±.65 AC) per title record
BUILDING SIZE
2,662 square feet
PARKING
Surface – 25
TENANCY
Del Taco
Reasons to Invest
• The Property is leased to Del Taco, which is the 2nd largest Mexican fast food
brand, with a total sales of approximately $459 million
• Well located on a commercial corridor
• The Property is located next to Motel 6 with 125 rooms and a Holiday Inn
Express with 84 rooms
• Long term corporately guaranteed lease
• Del Taco Corporate operates this location
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Property Parcel Map
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
5
Property Maps
Twentynine Palms Highway
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
6
Aerial Map
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
Subject Property
7
Investment Offering Summary
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
OFFERING PRICE
$2,750,000
CAP
4.63%
BUILDING PRICE/SF
$1,033
BUILDING LEASE RATE
$3.98 per square foot
ANNUAL INCOME
$127,308
LEASE TERM REMAINING
12 years
INCREASES
CPI capped at 10% every 5 years
OPTION TERMS
Four (4) – Five (5) year terms
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Financial Analysis
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
Type of Document
Custom prepared lease agreement
Tenant
Del Taco
Square Footage Occupied
2,662 SF
Base Lease Term
240 full calendar months (5 years) at the “Commencement of the lease”, which is August 2008
Options
Tenant has Four (4) – Five (5) year options
Option 1 & 3: FMV minimum 10%; Maximum 20% from previous term
Option 2 & 4: CPI max 10%
RENT DURING BASE TERM
Year
Rent per SF/Year
1
% Increase
Monthly Total
Annual Total
$3.83
$10,208.33
2
$3.83
$10,208.33
3
$3.83
$10,208.33
4
$3.83
$10,208.33
5
$3.83
$10,208.33
6
$3.98
$10,609.00
7
$3.98
$10,609.00
8
$3.98
$10,609.00
9
$3.98
$10,609.00
10
$3.98
$10,609.00
11
$4.38
12
$4.38
$11,669.90
13
$4.38
$11,669.90
14
$4.38
$11,669.90
15
$4.38
16
$4.82
17
$4.82
$12,836.89
18
$4.82
$12,836.89
19
$4.82
$12,836.89
20
$4.82
$12,836.89
$122,500.00
$122,500.00
$122,500.00
$122,500.00
$122,500.00
$127,308.00
$127,308.00
$127,308.00
$127,308.00
$127,308.00
$140,038.80
$140,038.80
$140,038.80
$140,038.80
$140,038.80
$154,042.68
$154,042.68
$154,042.68
$154,042.68
$154,042.68
CPI capped at 10%
$11,669.90
$11,669.90
CPI capped at 10%
$12,836.89
9
Property Images
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
10
Property Images
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
11
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
Tenant Overview
Tenant Overview
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
Number of locations: 544
Headquarters: Lake Forest, CA
Website: www.deltaco.com
Credit Rating (Moody’s): B1
Stock Ticker: TACO
Del Taco is a chain of North American fast-food restaurants specializing in Mexican-style meals as well as American foods such as hamburgers, French fries and milkshakes. It is
the #2 Mexican fast food chain in the country. It was founded in 1961 in Yermo, California by Ed Hackbarth and David Jameson. Originally called Casa Del Taco, the founders
shortened the name to Del Taco. The Del Taco brand was purchased in 2006 by Sagittarius Brands LLC.
13
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
Market Overview
MARKET OVERVIEW: Twentynine Palms
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
Location Overview
Home of the Joshua Tree National Park, Twentynine Palms is a
desert oasis that offers clear skies, clean air and majestic natural
surroundings. The city is a haven for artists and nature lovers,
and host to the world’s largest Marine Corps training base.
Ethnic Composition
Twentynine Palms is located in the Morongo Basin area of the
Mojave Desert in San Bernardino County; 140 miles east of Los
Angeles and 50 miles northeast of Palm Springs.
71.0%
Named in 1852 for the palm trees found there when Colonel
Henry Washington surveyed the San Bernardino base line, the
city was originally developed as a homesteading community and
officially became incorporated in 1987.
White
.
17.4%
Other Race
Population (2015)
25,144
Median Income (2015)
$40,737
Population Change
-0.5% (2000 to 2015)
Median Age (2015)
25.6
Area
58 square miles
Education (25+)
No High School Diploma............12.6%
High School Graduate...............30.7%
Some College............................29.5%
College Degree+........................27.2%
7.7%
Black or
African American
4.0%
Asian
15
MARKET OVERVIEW: Twentynine Palms
72636 Twentynine Palms Highway
Twentynine Palms, CA 92277
Economy & Education
ECONOMY
Small businesses are the background of this local economy. Separated from urban centers by a
mountain range, Twentynine Palms offers a refreshing small-town living environment. Through the
Twentynine Palms Water District, the city has an adequate water supply for the foreseeable future, and
due to its abundant sunshine, proximity to the “wind belt”, and presence of geothermal weather, the city
has been targeted for alternative energy research and development.
TRANSPORTATION
State Route 62 runs east through west throughout the city.
The Morongo Basin Transit Authority provides bus service for the region, and the city is close to two
airports: the Twentynine Palms Airport and the Palm Springs International Airport, located 52 miles
south of Twentynine Palms.
NOTABLE LOCATIONS
Named for the abundance of Joshua trees native to the land, the Joshua Tree National Park offers a
look at two distinct desert ecosystems across 800,000 acres of land. Due to its world-class rock
climbing, hiking, camping and historical mine sites, over 1.5 million tourists visit the park every year.
The Marine Corps Air Ground Combat Center is the world’s largest Marine Corps training base.
Marines participate in live fire exercises, artillery, tank and close air support training. Additionally, the
combat center uses a sprawling, 2-acre “Combat Town” for mission training.
The Death Valley National Park is a land of extremes, from towering peaks frosted with snow to rare
rainstorms bringing vast fields of wildflowers. The park contains a diverse desert environment of saltflats, sand dunes, badlands, valleys, canyons and mountains. It is the hottest and driest place in North
America.
The Murals of Twentynine Palms reflects the city’s rich vibrant history and love of nature. According
to writer Bob Pratte, “Viewing the attractive murals of Twentynine Palms is like driving through an art
museum.
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72636
TWENTYNINE
PALMS
HIGHWAY
Twentynine Palms
CA 92277
CONTACT
KYLE GULOCK
Lic. #01861385
[email protected]
Direct (310) 492-8416
MATT KRAMER
Lic. #01995909
[email protected]
Direct (424) 653-1803
JOSHUA BERGER
Lic. #01984719
[email protected]
Direct (424) 653-1834
CHARLES DUNN COMPANY
1925 Century Park East
Suite 2350
Los Angeles, CA 90067
Lic. #01201641
www.charlesdunn.com