1970 W. Whittier La Habra, CA 80631 Union Bank – La Habra, CA Confidential Offering Memorandum A-Rated Investment Grade Tenancy | Affluent Orange County Market | Recently Exercised 5-Year Lease ➢ Dense Infill Market ➢ Rental Increases of 7.5% every 2.5 years ➢ $165MM in Branch Deposits ➢ Outparcel to an Albertsons Anchored Center ➢ Dual Lane Drive-thru ATM
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JLL is pleased to offer for sale the fee-simple interest in a freestanding Union Bank (the “Property” or “Asset”) located in La Habra, California. Union Bank (the “Tenant”) is
backed by A-rated investment grade credit while the subject location ranks in the top 30% of all Union Banks within Orange County by total deposits with significant growthover the past five years. The Tenant has approximately 5 years remaining on the lease after extending their 5-year option, with attractive rental increases when the option
term begins in August 2020 and an additional rent bump halfway through the term. The Property is located in the affluent Orange County market in the city of La Habra, with
over 61,000 residents in the immediate area. Situated in an Albertsons anchored center, the Property sits at the primary retail intersection in La Habra seeing over 71,000VPD. The Tenant is under an ideal absolute triple-net (“NNN”) lease with no landlord responsibilities. This attractive Asset presents investors with an opportunity for secure,
growing cash flows with immediate upside backed by investment grade credit in the affluent Southern California market.
PROPERTY SUMMARYINVESTMENT HIGHLIGHTS
• The Asset is subject to a NNN lease with a recently extended 5-year option for atotal of 5.7 years remaining. There is an additional 7.5% increase in 2.5 years,providing immediate yield upside.
• The Tenant is backed by investment-grade credit (Moody’s: A2). The subject branchlocation’s total deposits rank in the top 30% for Union Banks in Orange County,growing at a healthy CAGR over the past five years.
• The Property sits at one of the most attractive retail corners within the La Habrasubmarket at the intersection of Whittier and Beach Boulevards (71,000+ VPD) andis situated as an outparcel to an Albertsons anchored center.
• The Property provides ease-of-access to customers via its dual lane drive thru-ATMat a highly trafficked intersection.
• The surrounding market features dense demographics with over 145,000 residentsand over 44% of households boasting average incomes of over $100,000 within a 3-mile radius,
• The Brea/La Habra submarket has seen declining retail vacancy withstable/increasing rents, indicating the strong tenant demand in the area. Newdeliveries include the brand new Starbucks and In-N-Out directly across the streetfrom Union Bank, highlighting the attractiveness of the Property’s location withinthe area.
Address1970 W. Whittier BoulevardLa Habra, California
Tenant*MUFG Union Bank, N.A.(Moody’s: A2)
Price $5,350,000
Cap Rate 4.33%
NOI1 | Rent PSF $231,650 | $41.00
Lease Type Absolute NNN
Lease Term1 5 years
Lease Expiration 8/5/2025
Square Footage 5,650 SF
Site Size 0.59 acres
Year Built 2000
Guaranty Corporate
Owner Interest Fee Simple
Parking 51 spaces
Rental Increases2 7.5% Every 2.5 years*
Renewal Options One 5-year option (7.5% rent increase)
*Backed by MUFG U.S. with A2 credit rating
(1) Option Rent commences August 6, 2020 - $231,650
(2) Rent adjusts by 7.5% on February 7, 2023 - $249,023.75
o Union Bank is located on an outparcel to the Albertsons anchored mall at the corner ofWhittier and Beach Boulevards. The intersection sees over 71,000 VPD in aggregate andserves as the primary retail strip within La Habra.
o In addition to benefitting from the visibility at the highly trafficked intersection in LaHabra’s downtown, the bank’s location also benefits from neighboring credit tenants likeStarbucks, Walgreens, In-N-Out and more…making this bank a convenient location forresidents within the area.
Orange County Union BanksRanked by Deposits ($millions)
1970 W. Whittier
$98
$121 $124 $128 $128
$144
$164
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2014 2015 2016 2017 2018 2019 2020
Deposits ($millions)Union Bank - 1970 W. Whittier
8.96% CAGR
o The subject Union Bank ranks in the top 30% as measured by deposits relative to other Union Banks in Orange County. Deposits have grown at a 8.96% CAGRsince 2014, a healthy figure indicating that the local customer base continues to find value in the subject branch location.
2019 Households by IncomeLess than $35,000 20.6% 17.2% 18.5%
$35,000 - $49,999 7.5% 8.9% 9.3%
$50,000 - $74,999 15.4% 16.2% 16.4%
$75,000 - $99,999 12.8% 13.6% 14.2%
More than $100,000 43.7% 44.1% 41.5%
Union Bank is located on an outparcel to the Albertsons anchoredmall at the corner of Whittier and Beach Boulevards. Theintersection sees over 71,000 VPD in aggregate and serves as theprimary retail strip within La Habra.
Union Bank | La Habra, CALocation Overview – La Habra, CA
The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information.
We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance
on this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.