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

Login or Register to See More Details

Available to Registered Users

  • Get to know the sponsor behind the offering with key information
  • See an overview of their experience and success
  • Understand their investment strategies
  • Easy access to contact the sponsor directly to learn more
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

Login or Register to View Financials

Available to Accredited Investors:

  • Get an overview of important financial details to make a smarter investment
  • Analyze the financial pro forma to see how projected returns are distributed over time
  • Review source and uses and other important details
Offering Financial

Sponsor Diligence Report

Overview Sponsor

RealCrowd requires that all Sponsors must meet a minimum criteria to be qualified to list on the RealCrowd Marketplace. It is important to note that all diligence and qualifications are based on the Sponsor and the lifetime experience of all its current Principals. RealCrowd believes that evaluating the Principals is the most effective and objective way to consider the quality of a sponsor. The following two benchmarks are the basis of our criteria: principal experience and disclosures.

U.S. Realty Partners, Inc.
Westlake Village, CA
http://www.usrpartners.com/
Report created on Nov 29, 2018
Over $50 Million Track Record

RealCrowd requires all Sponsors including their Principals to have a combined lifetime minimum of $50MM or $100MM of completed project cost or acquisition cost as a General Partner or Managing Member of an ownership entity with their own Principal equity invested, and at risk, in the project and with day-to-day involvement in the ownership depending on their lifetime Principal experience.

Current $360MM
Exited $20MM
Over 10 Years Principal Experience

RealCrowd requires all Sponsors to have Principals with a combined lifetime minimum experience of 7.5 or 10 years depending on their combined lifetime track record (see above). Qualifying experience include true Principal experience which is defined as a General Partner or Managing Member of an ownership entity with real cash equity invested, and at risk, in the project and with day-to-day involvement in the ownership. There must be at least 1 Principal with at minimum 5 Years of true Principal experience. Additional partially qualifying experience also includes Executive management experience, but only at VP-level or higher with a role specifically related to management of commercial real estate investment projects. Executive experience is discounted at 50% of time value as it relates to the minimum criteria for approval.

20+ Years
Combined
True Principal Experience 20+ Years
Years as Current Company 6 Years
Forclosures See Report
Short Sales Clear
Current or Pending Investigations Clear
Quick Analysis Flags

Quick Analysis Flags provide a high level indication as to whether or not the applicants themselves, or associates, appear on standard searches such as OFAC or Global Sanctions lists, bankruptcy filings, criminal records and other common disqualifying events.

Clear
Criminal Convictions None Reported
Current or Pending Legal Actions None Reported
Judgements, Claims, Arbitration None Reported
Bankruptcies

Bankruptcies are reported for a period of 10 years from the date of application. Bankruptcies from more than 10 years prior to the application date will be footnoted below.

See Report
Lawsuits None Reported
Outstanding Liens Greater than $10,000 None Reported
UCC Defaults

Uniform Commercial Code Defaults pertain to obligations and loans that are typically secured by non-real property. A UCC Default would indicate the applicant has not met their obligations to a Security Agreement as per the stipulations of the UCC.

None Reported
Criminal Filings None Reported
Current or Pending Legal Actions None Reported
SEC Filings/Other Documents Related to SEC Filings None Reported
Real Estate Track Record Verification

Identifies current and historical investment properties owned by the Principals of the Sponsoring entity. 30% of the properties (up to 10 properties) are verified for acquisition value, acquisition date, sales date (if applicable), sales price (if applicable) and ownership entity.

FINRA Broker Check

All Principals are screened to identify any past disciplinary actions related to employment at brokerage firms.

Adverse Reporting/Articles/Findings

Web search for relevant news articles and reporting on any sponsor or manager activities that may impact or inform their ability to manage real estate.

Clear
Adverse Social Media Profiles

Search of common social media platforms for profiles that contain offensive content or material relevant to ones moral turpitude.

Clear
LinkedIn Search

Search of LinkedIn to confirm professional experience conforms with reported experience.

Clear
Download Sponsor Report

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

Login or Register to View Documents

Available to Accredited Investors:

  • View, download, and print the offering PPM (Private Placement Memorandum)
  • View, download, and print the detailed financial projections
  • Access all of the important documents for this offering in one place
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.

RealCrowd is free for investors. RealCrowd charges a technology access fee to the operating partner for our services. We do not charge investors any upfront fees, ongoing asset management fees or promote/carried interest in the investments.

RealCrowd offerings are open to accredited investors. RealCrowd does not recommend or advise on any offering on our platform. While we have minimum history and experience threshold for sponsors who post on our platform, if you are unable to perform your own due diligence, please consult with an attorney or financial advisor prior to making an investment.

RealCrowd is a marketplace that connects investors with qualified sponsors. We strive for transparency and impartiality. For this reason, we do not participate in any offerings on our site.

Have a Question?

Send U.S. Realty Partners, Inc. and/or RealCrowd a message. If you have a question about this offering ask U.S. Realty Partners, Inc.. If you have a question about the transaction process or other general inquiry, RealCrowd will be happy to help.

Please resolve the captcha and submit.

We'll get back to you soon!

In the meantime, you can create an account to view detailed information about Cable Park Retail Partners, LLC.

In the meantime, please review the offering documents and financials.

Signup for our free 6 week course on the fundamentals of commercial real estate investing.