Property Details
Asset Profile
Core Plus

Cable Park Retail Partners, LLC

Orangevale, CA

Retail Property
U.S. Realty Partners, Inc. Westlake Village, CA
U.S. Realty Partners, Inc.
Targets
  • IRR 16%
  • Equity Multiple 1.92x
  • Hold Period 3-5Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash 9%
  • Stabilized Cash on Cash 9% in Y1
  • First Distribution Apr 2019
  • Distribution Frequency Monthly
  • Co-Investment 10%
  • Preferred Return 9%
  • Investor Profit Share 80%
  • Asset Profile Core Plus
  • Loan-to-Value 75%
  • Current Occupancy 90%

About this Property

U.S. Realty Partners and Compass Acquisition Partners are seeking investors to co-invest in the Cable Park Shopping Center located at 6261 Hazel & 8801-8893 Greenback Lane, Orangevale, CA 95662. The property was built in 1964, renovated in the 1990’s and most recently in 2017. It consists of approximately 161,310 square feet of leasable area situated on approximately 15.56 acres of fee simple land. It is a dominant shopping center in the trade area and is anchored by CVS, Ross Stores, Grocery Outlet, U.S. Post Office, Goodwill, Taco Bell, Denny’s, Papa Murphy, and UPS Store. Ross Stores (21,937 sf), Grocery Outlet (18,125 sf), and Goodwill (21,909 sf) recently opened and have new 10-year triple net leases. The property is currently 90+% leased. This is a stable cash flowing shopping center with built in rent increases. Over 75% of the tenant roster is comprised of national and regional high-quality daily needs, restaurant and service-oriented tenants that have a high level of resistance to internet competition. The Company is purchasing the property based solely on in-place income. More than 80% of the tenants have been at the property for over 5 years, and more than 50% have been there for 10+ years. $5+ Million has been spent in the past 24 months by an affiliate of the sponsors for improvements to the property and redevelopment of the 60,000 SF box space for Ross, Grocery Outlet and Goodwill.

There are value-add opportunities at this property (Note that projections ONLY include the lease up of vacant shops to 95%, not the other potential value-add opportunities):

  • Lease-up of vacant shops (current occupancy is approximately 90%)
  • Right-size or replace CVS during the holding period (they only pay $2.12 PSF per year while market is $10 to $15 PSF)
  • Potential to add a new pad building in the parking lot along Greenback Lane. Cable Park Shopping Center receives a tremendous amount of exposure as it is strategically located at the intersection of Greenback Lane and Hazel Avenue. Traffic counts exceed 40,000 cars per day on Hazel Avenue and more than 36,000 cars per day on Greenback Lane.
  • Additionally, the property is surrounded by a dense population of more than 100,000 people within the 3-mile trade area and average household incomes over $104,000. The center features excellent frontage and visibility to Greenback Lane and Hazel Avenue.

Key Points

  • Value Oriented Center with Strong Anchors
    • Ross Stores. Public company with over 1,400 stores, $14 Billion in Sales and an S&P “A-” credit rating
    • Grocery Outlet. Discount grocer founded in 1946 and currently has over 265 stores. Features brand name groceries at 40% to 70% off conventional retail prices.
    • CVS. Public company with over 9,800 pharmacies, $46 Billion in Sales and S&P BBB credit rating.
    • Goodwill Industries. Founded in 1902 with over 3,300 locations and total revenue of over $5.8 Billion.
    • Ross, Grocery Outlet and Goodwill have all executed new 10-year leases over the past 12 months. This shows the attractiveness of the location to new tenants.
  • Over 75% of the tenant roster is comprised of national and regional high-quality daily needs, restaurant and service-oriented tenants that have a high level of resistance to internet competition
  • Highly visible location at major intersection with very strong daily traffic counts of over 76,000 cars per day
  • Dense day and evening population. This “daily needs oriented” shopping center caters to a population of more than 100,000 people within 3-miles with average household income of over $104,000
  • Stable tenancy. More than 80% of the tenants have been at the property for at least 5 years and more than 50% have been there for over 10 years.
  • Attractive Purchase Price of $149 PSF (before transaction costs; well below replacement cost approaching $250 PSF). Price is based on a +/- 7% cap rate (before transaction costs) on in-place income
  • CVS only pays $2.12 PSF/Year in base rent versus market rent of $10 to $15 PSF. Opportunity to add value by “right sizing” the CVS store from 31,180 SF to +/- 15,000 SF or replacing CVS in the future with one or two new anchors tenants at market rent. Opportunity to add additional value by leasing shop vacancies and bringing tenants with below market rents to market rate when tenant leases expire.

Offered By

U.S. Realty Partners, Inc.

U.S. Realty Partners, Inc.

Westlake Village, CA

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Assets Under
Management

Currently
$360MM 10+ assets
Exited
$20MM less than 10 assets
Portfolio LTV
65%  
Historical
Realized Returns

Total IRR
18.2%  
Equity Multiple
2.2x  
Annual Cash
10%  
Years Of
Experience

As Principals
20+ years  
In Business
6 years  
Size
6 Staff * Dedicated investor relations
* All information is reported by U.S. Realty Partners, Inc. as of 11/27/2018.
Assets Under
Management

Currently
$360MM 10+ assets
Exited
$20MM less than 10 assets
Portfolio LTV
65%  
Historical
Returns

Total IRR
18.2%  
Equity Multiple
2.2x  
Annual Cash
10%  
Years Of
Experience

As Principals
20+ years  
In Business
6 years  
Size
6 Staff * Dedicated investor relations
* All information is reported by U.S. Realty Partners, Inc. as of 11/27/2018.

Financials

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Offering Financial

Location Details

Orangevale, CA

Cable Park Shopping Center receives a tremendous amount of exposure as it is strategically located at the intersection of Greenback Lane and Hazel Avenue in Orangevale, CA (Sacramento County). Traffic counts exceed 40,000 cars per day on Hazel Avenue and more than 36,000 cars per day on Greenback Lane. Additionally, the property is surrounded by a dense population of more than 100,000 people within the 3-mile trade area and average household incomes over $104,000. The center features excellent frontage and visibility to Greenback Lane and Hazel Avenue.

Documents

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Offering Agreement Documents

Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

The funding deadline is December 30th, 2018.

The first projected distribution is scheduled for April 2019.

Distributions are scheduled to go out on a monthly basis.

No, this investment is offered to US Residents only.

The Property was purchased from Kimco by an affiliate of the Sponsor's in December 2015 as part of a four-property portfolio. The original allocated acquisition cost was $18.5M. The affiliate subsequently replaced the 60,000 SF dark anchor tenant with Ross Stores, Grocery Outlet and Goodwill and spent over $5.0M on renovations, tenant improvements and leasing commissions. Although originally planning to market the Property for sale, the affiliate concluded that the value-add opportunity provided by any remaining upside was a more attractive option - the affiliate decided to sell only a portion of the equity interest in the Property. The present implied acquisition price of $24.0M is based on an appraisal from a national appraisal firm which determined an as-is value of $27.6M.

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