EXCLUSIVELY MARKETED BY:
MAIN STREET SHOPPING CENTER
A SaveMart-anchored neighborhood shopping center in Salinas, CA
MAIN STREET SHOPPING CENTER
2 MAIN STREET SHOPPING CENTER | RETAIL REAL ESTATE GROUP
The information contained in the following marketing brochure is proprietary and strictly confidential. It is intended to be reviewed
only by the party receiving it from Retail Real Estate Group and should not be made available to any other person or entity without the
written consent of Retail Real Estate Group. This marketing brochure has been prepared to provide a summary; unverified information
to prospective buyers, 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. Retail Real Estate Group has not made any investigation, and makes no
warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance
of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances,
PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the
financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject
property. The information contained in this marketing brochure has been obtained from sources we believe to be reliable; however,
Retail Real Estate Group has not verified, and will not verify, any of the information contained herein, nor has Retail Real Estate 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
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT MARK THOMAS WITH RETAIL REAL ESTATE GROUP FOR MORE DETAILS.
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Offering Price $8,350,000 Investment Strategy
Capitalization Rate 7.2% The center features extremely limited,
CY 2011 Projected NOI $600,967 anchored, small shop space in protected trade
Ownership Fee Simple area without vacancies.
Building Area 51,055 Square Feet Center features 22,367 square feet of small
Land Area 4.94 Acres (215,186 Square Feet) tenant shop space with modern bay
Parking (Approximate) 230 stalls dimensions. Fifteen (15) tenants are in the
Occupancy 97% center.
Price Per SF Building $164 Per Square Foot Save Mart anchor space is 50% below market,
Average Rent $SF $1.08 PSF Per Month providing both stability and potential up-side—
Anchor (Save Mart) $.46 PSF Per Month potential to re-tenant Save Mart space with
Restaurants (5) $1.99 PSF Per Month upscale market.
Service (8) 1.76 PSF Per Month 97% occupancy throughout the current
2011 Cash Flow Plus Principle $350,535 recession. Well-managed with seasoned
Balanced mix of restaurants and service
tenants paying current market rent or less.
Anchor tenant is responsible for its roof.
Existing Financing Summary
Well maintained with over $370K of recent
Outstanding Balance $3,852,841 (Sept 2010) owner investment into property for new
Interest Rate 6.5% parking lot, roofing, backflow devices & cages,
Loan Maturity September 1, 2012 and retail shell for vacant space.
Assumption Fee 1% Directly across from high volume CVS that
dominates the local drugstore market.
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CITY OF SALINAS AERIAL
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TENANT AND MARKET SUMMARY
Main Street Shopping Center Tenants
Tenant Total $ PSF No. Rent% of Ave Term
Category SF Rent/Month Total
Anchor (Save 28,688 $.046 1 24% 32 years
Restaurants & 11,379 $1.99 5 41% 7 years
Service Retail 10,988 $1.76 9 35% 13 years
Total Tenants 51,055 15 100%
Trade Area Profile
1.5-Mile Radius South Salinas Trade
Save Mart Supermarket
Population 30,596 34,784
Daytime Employees 25,343
Unemployment Rate 5.78% (2010)
Ave HH Income $72,426 $97,524
Traffic Count 35,000 Cars Per Day — S. Main Street
Anchor SF Shop SF Occupied
South Salinas Plaza 46,987 4,927 100%
The Plaza 29,543 14,803 100%
Star Center 23,000 30,000 100%
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STARBUCK’S COFFEE — MAIN STREET SHOPPING CENTER
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Save Mart Save Mart operates 244 stores in Northern California and Northern Nevada, with estimated sales of $4.9 billion. It
Supermarket acquired 132 stores from Albertsons LLC early in 2007, a move that doubled the chain’s store count from 124 to 256.
About half of the locations house in-store pharmacies. Its supermarkets and warehouse stores operate under the Save
Mart Supermarkets, S-Mart, Lucky, and FoodMaxx names. Original lease with Lucky Stores in 1978 has a percentage
The UPS Store Mail Boxes Etc. offers The UPS Store for all your UPS needs. A subsidiary of the parcel delivery giant, Mail Boxes Etc. is a
leading franchisor of postal, shipping, document, and business services retail centers operating primarily under The UPS
Store name. Its approximately 4,800 locations in the US, Puerto Rico, and Canada offer copying and printing, mailboxes,
office supplies, packaging, parcel shipping, and other postal and business products and services. Customers include small
and home-based businesses, traveling businesspeople, and consumers. Store has been in the center since 1993.
Starbuck’s Coffee Starbucks Corporation operates over 21,000 locations, with annual sales of over $10.2 billion. Starbuck’s Coffee has
been a tenant in the center since spring of 2002. In 2009, Starbuck’s extended their term until 2017 by exercising a five
year option early. The location has always exceeded their expectations, and their final 5 year option beginning in 2017 is
at Fair Market Value but not less than prior years rent.
Round Table Pizza Round Table Pizza operates a chain of about 500 family-oriented pizza parlors located primarily in the western US as well
as in Asia and the Middle East. The pizzerias are known for the colorful names given to menu items, including
Guinevere's Garden Delight and Montague's All Meat Marvel. Round Table also serves sandwiches, salads, and
appetizers. Franchisee Perpetual Pepperoni, Inc. has two other locations and has been a tenant since 1993.
Consistently high sale volume.
Subway Sandwiches The Subway chain of sandwich shops is the second-largest quick-service restaurant chain behind McDonald's. It boasts
more than 32,000 locations in 90 countries, with more US locations than the Golden Arches. Virtually all Subway
restaurants are franchised and offer such fare as hot and cold sub sandwiches, turkey wraps, and salads. Subway is new
to the center (spring 2010) and has a lease structured to increase dramatically over the next 3 years and then go to Fair
Market Value for option periods. Franchisee operator has 15 locations.
Smalley’s Roundup Founded in 1975 and recently relocated to Main Street Shopping Center. The restaurant has been very successful in its
new location and is regarded as a community staple. Voted ‘Best BBQ of Monterey County’ by California Reader’s Choice,
Monterey Life and Coast Weekly’s Readers Poll.
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SHOPPING CENTER SITE PLAN
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Tenant SF Monthly Rate Years Expiration Rental Options Reimburse 2010 Scheduled 2011 Scheduled
Rental PSF Tenant Date Increases Rent Rent
Anchor – Save Mart 28,688 $13,333 0.46 32 Yrs 07/01/14 % Rent 6X5 NNNN $160,000 $160,000
Restaurant-Food 11,379 $22,660 1.99 $271,920 $275,211
Starbuck’s Coffee 1,560 $4,134 2.65 8 Yrs 05/31/17 15% (2012) 1 X 5 (FMV) NNN $49,608 $49,608
Subway 1,400 $1,750 1.25 1 Yr 05/31/15 3% yr 4 3 X 5 (FMV) NNN $21,000 $23,450
Cold Stone 1,454 $2,763 1.90 6 Yrs 03/31/14 12% (2014) 1 X 5 ($2.13) NNN $33,156 $33,156
Round Table Pizza 2,415 $4,003 1.66 17 Yrs 05/31/13 CPI (2011) 1 X 5 (FMV) NNN $48,036 $48,877
Smalley’s Roundup 4,550 $10,010 2.20 2 Yrs 06/30/14 15% (2014) 2X5 NNN $120,120 $120,120
Service-Retail 10,988 $19,321 1.76 $231,858 $237,758
Verizon 540 $1,445 2.68 8 Yrs 09/03/11 CPI (3-6%) NONE NNN $17,340 $17,629
The UPS Store 1,650 $2,591 1.57 17 Yrs 10/14/15 CPI NONE NNN $31,092 $32,647
Ideal Cleaners 2,138 $3,459 1.62 26 Yrs 05/31/13 CPI (3-6%) 1 X 5 (FMV) NNN $41,508 $41,767
Hair 750 $1,407 1.88 16 Yrs 05/31/14 CPI NNN $16,884 $17,011
JC Nails 1,000 $1,800 1.80 6 Yrs 08/30/14 CPI 3-6% 1 X 5 (FMV) NNN $21,600 $21,600
a 1,560 $2,500 1.60 1 Yr 07/31/12 SCHED 1 X 3 (FMV) IDUS GRS $30,000 $32,500
Loboso & 1,100 $1,867 1.70 1 Yr 01/21/14 3% Sched 1 X 5 (FMV) NNN $22,404 $22,440
Medicine 900 $1,890 2.10 32 Yrs 12/31/10 NONE NONE NNN $22,680 $23,814
Vacant (Pending) 1,350 $2,362 1.75 $28,350 $28,350
TOTAL 51,055 $55,314 1.08 $663,778 $672,969
CPI increases of 1.5% in 2011
Renewals at 3% in 2011
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Revenues CYR 2011
Gross Potential Rent 672,968
Expense Reimbursements 243,464
Total Gross Revenue 916,433
Vacancy (5%) 43,418
Effective Gross Revenue 873,015
Non-Reimbursable (est.) 5,500
Common Area 133,084
Management Fee (4%) 26,919
Property Insurance 11,918
Property Tax 94,627
Total Operating Expense 272,048
Net Operating Expense (NOI) 600,967
Annual Debt Service - Existing Loan
Cash Flow After Debt 274,820
Sale Price 7.2% 8,350,000
Existing Loan 3,852,841
Cash Requires 4,497,159
cash on cash 6.11%
Cash + Principle on cash 7.79%
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South Salinas Market Competing Shopping Centers
The Valley South Salinas, the area extending
The Salinas Valley sits between the south from Market Street in the down
Gabilan and Santa Lucia mountain town area out to Blanco Road features
ranges and follows the Salinas River to four anchored shopping centers.
the Monterey Bay. Salinas is located 20 Adjacent to Main Street Shopping
miles northeast of Monterey, 55 miles Center is The Plaza Shopping Center
south of San Jose, 101 miles south of anchored by CVS/Pharmacy. The CVS
San Francisco and 325 miles north of Los store is a top tier volume store
operating out of 29,543 Square feet The Plaza
Angeles. The moderate climate is ideal, Shopping Center
with an average temperature of 68 without a drive through. Tenants
degrees and Mediterranean-like featured in the center include
weather in the summer. Salinas was GameStop, Jamba Juice, and Radio
recently named the city with the best Shack.
climate in the United States and Canada Two blocks away, across Blanco Road, Shopping Center
in "Cities Ranked and Rated," a book is South Salinas Plaza anchored by a Save Mart
comparing 400 cities. This picturesque 46,987 square foot Nob Hill grocery Shopping Center
valley is speckled with hundreds of store. The grocery Store is dominant, Star Market
growers, shippers, wineries and and is one of the top volume grocery
thousands of other businesses that stores in Monterey county. South
support the vitality of active Salinas Shopping Center has only three
communities. additional small tenants, a 2,400
Square foot Mexican restaurant, a
Lifestyle & Population Wienerschnitzel, and a coffee kiosk.
The strong economy of the local Across South Main Street from South
agriculture industry is partnered with a Salinas Plaza is the Star Center
relaxed lifestyle to create a high quality Shopping Center, an older center
of life in the Salinas Valley. Salinas is the anchored by the independent Star
seat of Monterey County, with a Market, Kragen Auto, and McDonald’s. South Salinas Plaza
population of 152,677; The population The Star Market is family owned and is Nob Hill Grocery Store
of Monterey County is 425,102. Salinas approximately 23,000 Square Feet.
is the regional shopping area with an
auto center, and a number of shopping
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Monterey-Salinas Route 68
State Route (SR) 68 stretches 20 miles
between Salinas and Pacific Grove. It is
part of the De Anza Trail, a route that
once linked all of California’s mission
settlements during the Spanish Colonial
era. CalTrans had plans to turn SR 68
into a freeway in the 1950s and 1960s,
but environmental concerns stopped the
expansion. As of 2006, the route carried
26,000 vehicles a day. Many of these
trips are generated by 14,500 residents
who now live in the Speckles, Toro Park,
San Benancio and Corral de Tierra
This historic and beautiful area inspired
John Steinbeck’s short stories and
California-based novels. Corral de Tierra
is an upscale community seven miles
from Salinas and ten miles from
Monterey. Travel to Salinas is efficient,
while travel to Monterey is congested.
Average Household Income for the
Monterey-Salinas Corridor is $131,591.
There are no shopping centers in the
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SHOPPING CENTER RENOVATIONS
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Property Description: The property is was constructed in 1978, and was renovated with slate finishing to exterior services, a channel signage
program, exterior paint, and new parking lot in beginning in 2008.
The center consists of three retail buildings—a 4,550 square foot restaurant pad building, an 11,475 square foot shop’s
building containing eleven tenants, and a 32,176 square foot grocery store building that contains 3,488 square feet of
shop space for two tenants.
Location: 1190 – 1150 S. Main Street, Salinas, California. South Main Street becomes State Route 68, the Salinas-Monterey highway
two blocks south of the property at Blanco Road. This area, of approximately four blocks, is the Monterey gateway to
Salinas, and contains key retail tenants serving the trade area. Quality retail property is limited and protected from
further development. State Route 68 connects upscale customers and this property, and the employment base in Salinas.
In addition to the city’s population of 152,677, more than 425,102 Californians live within Monterey County. State Route
68 is also the historic De Anza trail of 1776.
Property Highlights: The well-designed development features small shop space ranging from 540 Square feet to 2,400 square feet and a
grocery anchor. Tenant mix includes many brand names such as Starbuck’s, Verizon, Subway, Cold Stone Creamery, UPS
and Round Table Pizza. And typically is 100% leased. Save Mart Grocery Stores operates a former Albertson store that
does not have a pharmacy component. While the area demographics have changed since the original Albertson opened
in 1978, the store still has solid sales volumes, and significantly below market rent.
Recent Upgrades: Over $371,000 of upgrades have been recently completed, including a new parking lot, replacement of back-flow valves, a
new roof over a portion of the one building. HVAC has periodically been replaced as tenants have moved into the center.
Lease Protections: The lease with Save Mart includes tenant responsibility for roof and HVAC repair and replacement. Shop tenant leases
contain minimal exclusives.
Minimal Property Taxes Current property taxes are $56,914.30 with an assessed value of $4,919,537. The sale of the property will result in
Increase: approximately an additional $38,000 of property tax, pro-rated to tenants at an additional $.06 per square foot per
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Parking: Approximately 230 retail spaces.
Land Area: Two parcels combining for 4.94 acres, or approximately 215,186 Square feet of land.
Assessor’s Parcel 002-914-004 & 002-914-005
Traffic Count: Approximately 32,000 cars per day on South Main Street.
Trade Area: Within a one and a half mile radius of the center, 30,596 people reside with an Average Household Income of $72,530
and a Daytime population of 25,343 (2010). The effective trade area however extends down State Route 68 including the
communities of Spreakles, Toro Park, San Bernancio, and Corral de Tierra. Driving to South Salinas from these
communities is more convenient than driving to Monterey. Salinas is also well retailed north of Market Street, creating
an effective trade area population of 34,784 with an average Household Income of $97,524.
Available Seller’s Owner’s Operating Statements
Tenant Lease Documents
Natural Hazard Disclosure Report
Preliminary Title Report
Information contained herein has been obtained from sources we deem reliable. We cannot, however, assume responsibility for its accuracy.
Mark G. Thomas
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