Net lease Best Buy in Los Angeles MSA for sale

1. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Best Buy
23000 Savi Ranch Parkway
Yorba Linda, CA (Los Angeles MSA)

2. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
1) Confidentiality & Disclaimer
2) Executive Summary
3) Property Overview
4) Assumable Financing Overview
5) Aerial
6) Site Plan
7) Maps
8) Tenant Profile
9) Demographic Comparison Report
10) Location Overview
11) Contact Information
TABLE OF CONTENTS
TABLE OF CONTENTS
8) Tenant Profile
9) Demographic Comparison Report
10) Location Overview
11) Contact Information

3. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to
be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person
or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide
summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the
subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The
Boulder Group has not made any investigation, and makes no warranty or representation. The information contained
in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group
has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any
investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy
or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the
information set forth herein.
CONFIDENTIALITY & DISCLAIMER
CONFIDENTITALITY & DISCLAIMER

4. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
The Boulder Group is pleased to exclusively market for a sale single tenant net leased Best Buy property located
in the Los Angeles MSA. The Best Buy property is located in the city of Yorba Linda, approximately 30
miles southeast of downtown Los Angeles. Yorba Linda is located in northern Orange County, which is recognized
as one of the most counties in the United States. Average household income is in excess of $134,800
within three miles of the property. Best Buy has high visibility from Riverside Freeway 91, a primary thoroughfare
that experiences volumes in excess of 300,000 vehicles per day. Riverside Freeway 91 runs directly to
Newport Beach, approximately 20 miles southwest of the property. Additionally, the property has excellent ingress
and egress and an abundance of on-site parking.
The property is located within Savi Ranch Park; Savi Ranch Park is a regional trade destination encompassing
a wide range of retail, dining, entertainment and buildings. The area is home to over 130 retailers and
businesses. Best Buy is positioned as a freestanding outparcel to a shopping center anchored by Kohl’s, Dick’s
Sporting Goods, Bed Bath & Beyond and Michaels. The Best Buy has shared access with the shopping centers
and business within Savi Ranch Park. Other retailers in the immediate area include Costco, Target, Home Depot,
Staples, Petco and Regal Cinema 14. Major employers in Savi Ranch Park include CareFusion (NYSE: CFN) and
Nobel Biocare (Swiss Stock Exchange: NOBN). The property further from its location in the northern
Orange County submarket due to the low overall retail vacancy rate of 5.8%. The overall retail vacancy rate has
remained stable at this low rate for the last three quarters and is projected to decrease in the near future.
The original lease commenced in December 1997 with a primary term of 20 years. The lease features three
5-year renewal option periods with 5% rental escalations. Best Buy is a publicly traded company on the New York
Stock Exchange (BBY), with a market capitalization of $11 billion. Best Buy has a Standard & Poor’s rating of BB.
INVESTMENT HIGHLIGHTS
• Located within the Los Angeles MSA
• Located in Orange County with average household
income in excess of $134,800 within three miles of the
property
• The northern Orange County submarket has an overall retail
vacancy rate of 5.8%
• Best Buy is a publicly traded company (NYSE: BBY)
• 5% rental escalations in each of the three 5-year renewal
option periods
• Located in a primary retail trade area as an outparcel to a shopping center anchored by Kohl’s, Dick’s Sporting
Goods, Bed Bath & Beyond and Michaels
• Positioned adjacent to Riverside Freeway 91 (300,000 VPD)
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
• Bond net lease with no landlord responsibilities

5. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
PROPERTY OVERVIEW
PROPERTY OVERVIEW
Price: $6,300,000
Cap Rate: 9.37%
Rent Schedule: NOI Escalation Date
$590,389
$619,908 1/1/2018 (Option 1)
$650,904 1/1/2023 (Option 2)
$683,449 1/1/2028 (Option 3)
Renewal Options: Three 5-Year
Lease Commencement Date: December 24, 1997
Lease Expiration Date: December 31, 2017
Tenant: Best Buy
Credit Rating: BB (Standard & Poor’s)
Year Built: 1997
Landlord Obligations: None
Rentable Square Feet: 46,449
Land Size: 4.0 acres

6. NET LEASED INVESTMENT OFFERING
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ASSUMABLE FINANCING OVERVIEW
ASSUMABLE FINANCING OVERVIEW
Loan Balance (November 2013): $2,883,753
Maturity Date: December 1, 2022
Interest Rate: 5.98%
Annual Debt Service: $379,240
Term: 15 year
Amortization: 16 year
Loan to Value: 46%
Equity Investment: $3,416,247
Loan Balance at Maturity: $396,861
Loan Balance at Lease Expiration: $1,908,018
Cash on Cash Return: 6.18%
Assumption Fee: 1% of Outstanding Balance
Recourse: None
Assumable Financing Overview
The purchaser must assume the in place financing detailed below.
2013 2014 2015 2016 2017
Net Operating Income $ 590,389 $ 590,389 $ 590,389 $ 590,389 $ 590,389
Mortgage Payments $ (379,240) $ (379,240) $ (379,240) $ (379,240) $ (379,240)
Cash Flow $ 211,149 $ 211,149 $ 211,149 $ 211,149 $ 211,149
Cash on Cash Return 6.18% 6.18% 6.18% 6.18% 6.18%
Cash on Cash: November 2013 - December 2017
The above are shown on a full year basis

7. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
AERIAL
AERIAL
300,000 VPD36,000VPD
YORBALINDADRIVE
N

8. NET LEASED INVESTMENT OFFERING
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SITE PLAN
SITE PLAN
300,000VPD
N

9. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
MAPS
MAPS

10. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Best Buy is an American multinational consumer electronics corporation headquartered in Minnesota.
Best Buy operates numerous subsidiaries including CinemaNow, Geek Squad, Magnolia Audio Video,
Sales, Cowboom, and in Canada operates under both the Best Buy and Future Shop labels. Best Buy operates
over 1,150 stores and over 100 Best Buy Express automated retail stores in airports and malls across the
country. Best Buy stores sell electronics, movies, music, computers, televisions, games, and appliances offering
brand name products including Apple, Samsung, Sony and Toshiba. Additionally, Best Buy engages in the sale
of cellular phones including Verizon Wireless, AT&T Wireless, Sprint PCS, Boost Mobile and T-Mobile. Best Buy
is publicly traded on the NYSE under the symbol BBY and has a market cap of $11 billion.
Website: www.bestbuy.com
Number of Locations:
Stock Symbol: BBY
Standard & Poor’s Rating:
Market Capitalization: $11 billion
TENANT PROFILE
TENANT PROFILE
BB
1,150

11. NET LEASED INVESTMENT OFFERING
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Population 1-mi 3-mi 5-mi
Total Population 9,333 62,932 117,041
Total Households 3,343 21,738 40,389
Income
Median Household Income $110,823 $112,212 $108,131
Average Household Income $135,296 $134,825 $128,612
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORT

12. NET LEASED INVESTMENT OFFERING
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Yorba Linda is an affluent suburban community in northeastern Orange County, California
approximately 30 miles southeast of downtown Los Angeles. Yorba Linda has a median household
income in excess of $120,000 and is identified as one of the richest cities in the U.S. by the U.S.
Census Bureau. At the time of the 2010 U.S. Census, Yorba Linda had a population of 64,234.
The Yorba Linda economy is anchored by two main commercially zoned areas, Savi Ranch and
the north side of La Palma Avenue which is primarily an office park. Savi Ranch contains retailers, auto dealers,
hotels and office buildings. Major employers in Yorba Linda include, CareFusion (NYSE: CFN), Nobel Biocare and
Costco.
www.ci.yorba-linda.ca.us
Los Angeles is the most populous city in the state of California and the second most populous
city in the United States, second to only New York City. At the time of the 2010 U.S. Census Los
Angeles had a population of 3,792,621 and the greater Los Angeles MSA had a population of
over 12,800,000. Los Angeles is a global city, with strengths in business, international trade,
entertainment, culture, media, fashion, science, sports, technology, education and medicine and research. The
city has been ranked sixth in the Global Cities Index and 9th in the Global Economic Power Index.
Los Angeles is most well known as being the home to Hollywood, globally recognized as the epicenter of the
motion picture industry. Other major landmarks in the Los Angers area include Grauman’s Chinese Theater, Walt
Disney Concert Hall, Griffith Observatory, L.A. Live and the Capitol Records Building. The city is home to several
professional sports teams including the Los Angeles Dodgers of Major League Baseball, the Los Angeles Kings
of the National Hockey League, the Los Angeles Clippers and Los Angeles Lakers of the National Basketball
Association. The economy of Los Angeles is driven by international trade, entertainment, aerospace, technology,
fashion and tourism. The city is home to six Fortune 500 companies including Occidental Petroleum, Heath Net,
AECOM, CBRE Real Estate and Tutor Perini. Additionally, there are multiple universities located in Los Angeles,
among them are The University of Southern California, University of California Los Angeles and California State
University, Los Angeles.
www.lacity.org
LOCATION OVERVIEW
LOCATION OVERVIEW

13. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
666 Dundee Road, Suite 1801
Northbrook, IL 60062
Randy Blankstein
President
847.562.0003
rblank@bouldergroup.com
Jimmy Goodman
Partner
847.562.8500
jimmy@bouldergroup.com
CONTACT INFORMATION
CONTACT INFORMATION
The property is being marketed in conjunction with Jason Pongsrikul, a licensed California Real Estate Broker (CA LIC #: 01785565)