In the acquisition of the Barstow Shopping Center, Realty Mogul will be partnering with established real estate players in the market - specifically, the co-sponsors U.S. Realty Partners and Compass Acquisition Partners.
U.S. Realty Partners
U.S. Realty Partners ("USRP") is a real estate investment company specializing in the acquisition, asset management, development and redevelopment of high quality retail properties located in strategic metropolitan areas of the western United States.
USRP focuses on anchored retail properties in markets with strong demographics, high barriers to entry, and achieve competitive risk adjusted returns for our investors and partners. Its team takes pride in its vast shopping center experience, extensive market knowledge, disciplined underwriting and excellent history of efficient execution.
Compass Acquisition Partners
Compass Acquisition Partners ("Compass") is a privately capitalized real estate investment firm focused on the acquisition of commercial real estate properties in select markets throughout the western United States. Compass has successfully executed an investment strategy based on a disciplined acquisition effort, an efficient renovation process and strong property management through their operating partner, Cirrus Asset Management. Its current portfolio includes over 4,300 apartment units and several retail and industrial properties, with a combined value of approximately $415 million.
Its managing principal, John Walsh, is a seasoned real estate professional who is the driving force providing overall direction to Compass and managing investor relations. He leads a team with experience in acquisitions, finance, asset management and property management. John has more than 30 years of experience in the successful execution of an opportunistic investment strategy that emphasizes acquisitions of well-located properties and value maximization through intensive property management.
Compass utilizes a highly proactive and disciplined investment approach. Markets with favorable demand characteristics such as job and population growth, demographic shifts and positive legislation are pursued. In addition, markets with supply constraints receive more favorable underwriting. Markets with signs of oversupply such as surplus land, changes in zoning and increases in building permits are avoided.
| Address: | 1270 &1300-1354 East Main Street Barstow, CA 92311 |
| Year Built: | 1963-1968 |
| Current Occupancy: | 88% |
| Net Rentable Area: | 110,100 square feet |
| Parking: | 500 stalls 4.29 spaces per 1,000 square feet |
| Access: | Signalized access via Yucca Avenue and four curb outs off E. Main Street |
| TENANT NAME | SQUARE FOOTAGE |
|---|---|
| Vons (Safeway) | 37,586 |
| 99 Cents Only | 18,691 |
| Big 5 Sporting Goods | 14,078 |
| Daily Stop | 4,674 |
| Radio Shack | 3,325 |
| Barstow Jewelry and Loan | 3,280 |
| Barstow Management (Coin Laundry) | 3,122 |
| Shear Madness | 2,445 |
| CVH Medical Services | 2,400 |
| Strategy Realty | 2,331 |
| Allstate Insurance | 1,798 |
| Dental Office | 1,430 |
| Rigoberto Bro's Restaurant | 848 |
| Barstow Barber (Joe's Barber) | 780 |
| Wells Fargo (ATM) | 0 |
The center was constructed between 1963 and 1968 and features pylon signage and signalized access via Yucca Avenue in addition to 950 feet of frontage and four curb cut outs off E. Main Street. The property is bisected by Yucca Avenue, with Vons on the southwest corner of E. Main Street and Yucca Avenue and the 99 Cent Only Store, Big 5 Sporting Goods, and remainder of the property is on the southeast corner of E. Main Street and Yucca Avenue.
The property also features a recently repaved parking lot with 500 stalls and additional income potential through a developable pad site on the northeast corner of the Vons parcel with direct street frontage. USRP and Compass will be acquiring the property for $73 per square foot, which is below an estimated replacement cost of $125 to $130 per square foot.
Major Tenants
- Vons is a supermarket chain headquartered in California with 325 stores operating under the Vons and Pavilions banners. It is a wholly-owned subsidiary of Safeway Inc. (NYSE: SWY), the second largest supermarket chain in North America. Most stores offer a wide selection of food and general merchandise and feature a variety of specialty departments such as bakery, delicatessen, floral and pharmacy. Vons is both the lead anchor tenant in Barstow Shopping Center and the largest tenant, occupying 37,596 square feet (32%) of the leasable area. Vons has operated at this site for 50 years and has recently renewed its lease for an additional 10 years (expires 7/31/2023). The current lease has two (2) five-year options to extend through 2033.
- 99 Cents Only is a deep-discount retailer based in California with 238 stores in California, 44 in Texas, 33 in Arizona and 17 in Nevada. The chain carries name-brand and private-label food and beverages, health and beauty aids, household goods, hardware, toys, stationary, party and seasonal goods at low price points in convenient, attractively merchandised stores. Over 50% of the company's revenues come from sales of food and beverages, including produce, dairy, deli and frozen foods. 99 Cents Only occupies 18,691 square feet (16%) of the leasable area in Barstow Shopping Center and has five years remaining on its initial lease term (expires 1/31/19) with four (4) five-year options through 2039.
- Big 5 Sporting Goods ("Big 5") is a leading sporting goods retailer in the western United States, operating 420 stores in 12 states as of September 29, 2013. The company offers athletic shoes, apparel and accessories as well as a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, snowboarding, and roller sports. Big 5 occupies 14,078 square feet (12%) of the leasable area in Barstow Shopping Center and has five years remaining on its initial lease term (expires 1/31/19) with four (4) five-year options through 2039.
- Radio Shack is a franchise of electronics retail stores headquartered in Texas with over 7,000 store locations throughout the United States, Europe, South America and Africa. In addition to selling a variety of electronic merchandise, Radio Shack is one of the top retailers in wireless, offering AT&T, Sprint, Verizon and Boost Mobile phone and carrier options. Radio Shack currently occupies 3,325 square feet (3%) of the leasable area in Barstow Shopping Center and has approximately four (4) years remaining on its initial lease term (expires 1/1/18).
A market report, site plan, current rent roll, lease expiration schedule, and overview of major tenants are attached below the map on the right hand side of this page. Please note that the martial arts studio, Dr. Dallas, and DiNapoli's Restaurant are not included in this transaction.
RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.
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Risk of InvestmentThis investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
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