Listed by CBRE - Orange County
$28,708,000
Sports Basement
Details
APN 7225-001-006
Property Type Retail
Sub Type Shopping Center
Square Footage 145,251
Net Rentable (SqFt) 145,251
Units 975
Cap Rate 6.25%
NOI $1,794,240
Occupancy 100%
Tenancy Single
Lease Type NNN
Lease Expiration 01/31/2040
Remaining Term 13.5
Rent Bumps Yes
Year Built 1955
Year Renovated 2025
Acreage 1.060
Zoning Community Commercial Automobile-Oriented (CCA)
Parking Spaces 975 spaces
Parking per 1,000 SqFt 6.71
Investment Type Net Lease
Lease Commencement 10/18/2024
Ground Lease No
Retail | 6.25% CAP | 145,251 SqFt
Marketing description
Sports Basement presents an exceptional opportunity to acquire a highly secure STNL asset with a long-term NNN lease located in a premier, supply-constrained retail corridor in coastal and infill Long Beach. This rare infill LA County STNL opportunity features a high-quality retail asset leased to an established tenant that seldom comes to market in Southern California.
The property is 100% leased to The Sports Basement, Inc., a California-based sporting goods retailer that has continued to grow since 1998 and now operates 15 stores throughout California. Sports Basement is widely recognized as a top tier provider of a variety of sports, outdoor, fitness, and casual gear and apparel as well as rentals, repair services, and community spaces. The company was founded on the knowledge that whatever they accomplish, it's thanks to their community support and they give back with over $13 million distributed to 1,000+ California charity and school beneficiaries since 1998.
Sports Basement is on a 15-year NNN lease with over 13 years of firm remaining lease term and two 5-year options to renew thereafter. The tenant is responsible for full reimbursement to landlord for property taxes and insurance as well as the Fixed CAM Costs at only $50,000 annually. The lease provides for 10% rental increases every 5 years with the next increase in November 2029, benefitting future cash flow and providing a hedge against inflation.
Sports Basement is located within Los Altos MarketCenter, a best of class, grocery anchored retail center with Lazy Acres Natural Market, TJ Maxx, LA Fitness, CVS, Wells Fargo, Pet Supplies Plus, Memorial Care Medical Group, Southland Physical Therapy, IHOP, Pick Up Stix, and many more, proving the viability of this location with unsurpassed quality given Sports Basement's improvements and its co-tenants within the center.
Investment highlights
- Rare Infill LA County STNL Opportunity - High-quality STNL retail assets leased to established tenants seldom come to market in Southern California, let alone in coastal and infill Long Beach. Sports Basement presents an exceptional opportunity to acquire a highly secure STNL asset with a long-term NNN lease located in a premier, supply-constrained retail corridor
- Established California Retailer - 100% leased to The Sports Basement, Inc., a California-based sporting goods retailer that has continued to grow since 1998 and now operates 15 stores throughout California, widely recognized as a top tier provider of a variety of sports, outdoor, fitness, and casual gear and apparel as well as rentals, repair services, and community spaces. Sports Basement was founded on the knowledge that whatever they accomplish, it's thanks to their community support and they give back with over $13 million distributed to 1,000+ California charity and school beneficiaries since 1998. According to Placer.ai, this Sports Basement store is ranked #2 within the chain for visits
- Beneficial NNN Lease and CAM Structure - The tenant is responsible for full reimbursement to landlord for property taxes and insurance as well as the Fixed CAM Costs at only $50,000 annually. Per the REA, this parcel can only be allocated $50,000 annually in costs. Therefore, the current lease structure fully covers all CAM charges for the property - all this benefits the passive nature of this investment as well as limiting future property related costs
- Long-Term Lease - Sports Basement is on a 15-year NNN lease and has over 13 years of firm remaining lease term with two 5-year options to renew thereafter
- Income Growth - The lease provides for 10% rental increases every 5 years with the next increase in November 2029, benefitting future cash flow and providing a hedge against inflation compared to many 'flat' STNL investments
- Highly Invested Tenant - In addition to its long-term lease commitment, Sports Basement has invested significant capital into exterior and interior improvements for this store's use and functionality, proving its additional commitment to this location
- Best of Class Retail - Sports Basement is located within Los Altos MarketCenter, a best of class, grocery anchored retail center with Lazy Acres Natural Market, TJ Maxx, LA Fitness, CVS, Wells Fargo, Pet Supplies Plus, Memorial Care Medical Group, Southland Physical Therapy, IHOP, Pick Up Stix, and many more, proving the viability of this location with unsurpassed quality given Sports Basement's improvements and its co-tenants within the center
- Dominant Retail Hub - Bellflower Blvd is a dominant north/south arterial and retail hub for the immediate trade area, proving the viability of Sports Basement as a retail property and location. In addition to its co-tenants in Los Altos MarketCenter, the property is surrounded by a multitude of national and regional retailers including Target, Trader Joes, McDonald's, Five Below, Starbucks, Chase, Bank of America, Farmers & Merchants Bank, Panera, Lowes, Ralphs, Planet Fitness, Vons, Raising Cane's, In-N-Out, Chick Fil-A and many others within one mile of the site
- High Traffic, Convenient Regional Destination - With Los Altos MarketCenter's location at two signalized intersections including N Bellflower Blvd (±34,361 CPD) and E Stearns St (±9,849 CPD), two major arterials of Long Beach and only half a mile from I-405 (±268,142 CPD) and central to the I-605, I-710, and Pacific Coast Hwy, this location offers convenient local and regional connectivity, imperative for Sports Basement's interest in this location and its continued viability and success
- Optimal Long Beach Address - Approximately one mile from California State University, Long Beach, a ±322-acre campus with over 42,000 students, five miles to the Pacific Ocean, and home to the Port of Long Beach, the nation's busiest seaport through March 2026 and combined with the adjacent Port of Los Angeles, the busiest container port complex in North America
- High Exposure Property - With its high-profile, multi-level configuration, the largest building within Los Altos MarketCenter, and with exceptional Bellflower Blvd frontage and monument signage, the property enjoys excellent exposure
- Irreplaceable Asset - At the contemplated pricing, the property will trade well below the estimated replacement cost and within this extremely supply constrained trade area with virtually no sites available for large scale retail and commercial development, the size and scope of this building would be very difficult to replace - this is truly irreplaceable real estate!
- Limited Expense Exposure - The tenant has a Fixed CAM Costs Contribution at $50,000 annually, covering 100% of the allocated REA CAM charges for the property, limiting future expense exposure for ownership and particularly beneficial given that the tenant reimburses 100% of this expense via the NNN lease structure
- Variety of Use Alternatives - Per the REA managing the Los Altos MarketCenter, this site allows a variety of uses with very limited restrictions, creating flexibility for future uses at the property and benefiting its underlying real estate fundamentals
- Extremely Dense, Affluent LA County Demographics - Los Angeles County's diverse economy, dense communities, nearly perfect climate, and high quality of life make it one of the most desirable locations in the country, particularly those along the coast like Long Beach. More than 22,200 people in a 1-mile radius with Average Household Income exceeding $154,200. More than 194,600 people in a 3-mile radius with Average Household Income exceeding $101,600. More than 523,300 people in a 5-mile radius with Average Household Income exceeding $93,900
- Ideal 1031 Exchange Replacement Property and Portfolio Addition - Irreplaceable Infill Location - With its infill Long Beach location, proximity to affluence and density, tight submarket with limited availabilities, and virtually no sites available for redevelopment, this property exudes irreplaceability, benefitting its long-term success and viability
- Long-Term, Established Tenant - NNN leased to an established operator with significant commitment to the property given its long-term lease and invested capital into its store
- Delivered Debt-Free - With no existing financing in-place that must be assumed, the property is available for a quick close to accommodate 1031 Exchange requirements
Listing Contacts
Listed by CBRE - Orange County
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Loan Amount
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Annual Debt Service
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Annual Cash Flow
$1,794,240.00
$149,520.00/mo
Valuation Metrics
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DSCR
6.25%
Cap Rate
6.25%
ROI
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