Property Details
Repeat Sponsor  Stabilized Occupancy  Stabilized Cashflow  Below Market Rents  NOI Growth 
Asset Profile
Value Add

Windsor Retail Partners, LLC

Windsor, CA

Retail Property
U.S. Realty Partners, Inc. Westlake Village, CA
U.S. Realty Partners, Inc.
  • IRR 16%
  • Equity Multiple 1.9x
  • Hold Period 3-5Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash 8%
  • Stabilized Cash on Cash 8% in Y1
  • First Distribution May 2019
  • Distribution Frequency Monthly
  • Co-Investment 10%
  • Preferred Return 8%
  • Investor Profit Share 80%
  • Asset Profile Value Add
  • 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 Lakewood Shopping Center located at 8774-8796 and 8800-8908 Lakewood Drive, Windsor, California 94592. The property was built in 1981, renovated in the 1990’s and most recently in 2018. It consists of approximately 107,797 square feet of leasable area situated on approximately 9.8176 acres of fee simple land. It is a dominant shopping center in the trade area and is anchored by Raley’s Supermarket, Wells Fargo Bank, U.S. Post Office, Kelly Moore Paint, Papa Murphy Pizza, and Little Caesars.

This is a stable cash flowing shopping center with built in rent increases. Over 68% 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. Over 75% of the tenants have either been at the property for at least 10 years or have new 10-year leases. Many existing leases are at less than current market rents.

There are value-add opportunities at this property:

  • Replace the existing 11,468 SF gym tenant ($7.68 PSF) with a market rate tenant(s) at $15 to $18 PSF NNN
  • Lease the existing 6,197 SF of vacant shop space.

About this Property

U.S. Realty Partners and Compass Acquisition Partners are seeking investors to co-invest in the Lakewood Shopping Center located at 8774-8796 and 8800-8908 Lakewood Drive, Windsor, California 94592. The property was built in 1981, renovated in the 1990’s and most recently in 2018. It consists of approximately 107,797 square feet of leasable area situated on approximately 9.8176 acres of fee simple land. It is a dominant shopping center in the trade area and is anchored by Raley’s Supermarket, Wells Fargo Bank, U.S. Post Office, Kelly Moore Paint, Papa Murphy Pizza, and Little Caesars.

This is a stable cash flowing shopping center with built in rent increases. Over 68% 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. Over 75% of the tenants have either been at the property for at least 10 years or have new 10-year leases. Many existing leases are at less than current market rents.

There are value-add opportunities at this property:

  • Replace the existing 11,468 SF gym tenant ($7.68 PSF) with a market rate tenant(s) at $15 to $18 PSF NNN
  • Lease the existing 6,197 SF of vacant shop space.

Key Points

  • Grocery Anchored Center with Strong Co-tenants
    • Raley’s Supermarket. Founded in 1935 and currently owns and operates 123 stores under the Raley’s, Bel Air Markets, Nob Hill, and Food Source banners. $3 Billion in Sales and over 12,000 employees. Approximately 14.5-year term remaining. Lease expires 6/30/32. Tenant spent over $7MM on interior remodel in 2018.
    • Wells Fargo Bank - 10-year lease term
    • Kelly Moore Paints - 10-year lease term
  • 8% preferred return to investors with 80/20 split (investors/sponsor). Projected 8% Year 1 Cash Flow to Investors, IRR of over 16% and Total Average Annual Return of 19.6% (based on 5 year hold projections)
  • This “daily needs oriented” shopping center caters to a population with of more average household incomes over $118,000 and more than 30,000 people within a 3-mile radius
  • 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
  • Favorable long term (10 year) fixed rate financing at approximately 5.44% with 3 years of interest only payments.
  • Attractive Purchase Price of $165 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
  • Highly visible location at major intersection with excellent proximity to the 101 Freeway
  • Stable tenancy. Over 75% of the tenants have either been at the property for longer than 10 years or have new 10-year leases.
  • In negotiation with Tesla for a Super Charger station with 14 stalls.

Offered By

U.S. Realty Partners, Inc.

U.S. Realty Partners, Inc.

Westlake Village, CA

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Assets Under
Management

Currently
$380MM 10+ assets
Exited
$29MM less than 10 assets
Portfolio LTV
65%  
Historical
Realized Returns

Total IRR
18%  
Equity Multiple
2.1x  
Annual Cash
10%  
Years Of
Experience

As Principals
20+ years  
In Business
7 years  
Size
6 Staff * Dedicated investor relations
* All information is reported by U.S. Realty Partners, Inc. as of 2/1/2019.
Assets Under
Management

Currently
$380MM 10+ assets
Exited
$29MM less than 10 assets
Portfolio LTV
65%  
Historical
Returns

Total IRR
18%  
Equity Multiple
2.1x  
Annual Cash
10%  
Years Of
Experience

As Principals
20+ years  
In Business
7 years  
Size
6 Staff * Dedicated investor relations
* All information is reported by U.S. Realty Partners, Inc. as of 2/1/2019.

Financials

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Offering Financial

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Diligence Preview

Location Details

Windsor, CA

Lakewood Shopping Center receives a tremendous amount of exposure as it is strategically located on Lakewood Drive just off the 101 Freeway in Sonoma County. The center is in close proximity to the wine country towns of Healdsburg, St. Helena, Calistoga, Napa, Sonoma and Geyserville. The property is surrounded by an affluent population with average household incomes over $118,000 and more than 30,000 people within a 3-mile radius. The center features excellent frontage and visibility to Lakewood Drive. Negotiations are in process with Tesla for a 14 car Supercharger station in the parking lot of the center given its close proximity to the strategic location to the high traffic counts on the 101 freeway.

Documents

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Offering Agreement Documents

Frequently Asked Questions

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

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 $14.89M. The affiliate renegotiated the Raley’s supermarket anchor tenant lease from a remaining term of less than 36 months to a 15 year term with renewal options AND secured Raley’s commitment to renovate the interior of their store (reportedly Raley’s spent over $7 Million to completely renovate their store). Further, the affiliate spent over $2.0M on exterior 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 $18.0M is based on an appraisal from a national appraisal firm which determined an as-is value of $20.0 Million.

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