SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, corporate guaranteed, freestanding, Enterprise Rent-a-Car, investment property located in Hawaiian Gardens, CA (Los Angeles County). The tenant, Enterprise Rent-a-Car Company of Los Angeles, a Delaware LLC, has signed a brand new 10 year lease with 2 (5-year) options to extend. The lease features 3% annual rental increases commencing in July 2020 and continuing throughout the initial term and both option periods, steadily growing NOI and hedging against inflation. In addition, the property has an existing highway billboard sign which pays $225/mo in gross rent to the landlord, generating additional income for a new owner. The billboard is being rented by Outfront Media, an affiliate with CBS Outdoor. The lease is corporate guaranteed by Enterpise Holding’s, Inc.’s, Southern California entity and is absolute NNN with zero landlord responsibilities. Enterprise put in $1,000,000+ of its own capital towards construction and land improvements with no allowance from landlord, demonstrating their commitment to the site. Enterprise is paying below market rents on their ground lease, providing an investor future upside through bringing current rent figures to market rates upon lease expiration. A bordering parcel +/- 25,000 SF just north of the site is included in the sale and is currently leased to a general contractor generating $3,000/mo. in gross revenue (contact Agent for details).
The subject property is located at the signalized, hard corner intersection of E. Carson Street and Claretta Avenue with excellent visibility and exposure to over 26,800 vehicles passing by on a daily basis. Enterprise is also located less than 1-mile from the on/off ramp to Interstate 605, a major commuter thoroughfare with over 208,000 VPD. The asset was recently built in 2018, featuring state-of-the-art construction with an attractive stucco and stone facade, and has 2 vehicle service bays to assist rental customers and keep the fleet of cars in top shape. On average, rental car companies with sites out-side of airports perform best when located near numerous automotive repair shops just as this location is. The property is approximately 1-mile from Long Beach Towne Center, a regional power center that features high profile national/credit tenants such as a Walmart Supercenter, Sam’s Club, Lowe’s Home Improvement, Edwards Long Beach Cinemas (26 screen), Bob’s Discount Furniture and Mattress Store, Michaels, Ashley HomeStore, Ross Dress for Less, PetSmart, Barnes & Noble, and more, greatly increasing consumer traffic to the trade area. In addition, the trade area is characterized by other national tenants including The Home Depot, Albertsons, JoAnn Fabrics, Food 4 Less, and 99 Cents Only. Moreover, The Gardens Casino (200,000 SF), a cardroom casino located just west of the subject property has been open since 1997, generating crossover shopping within the trade area. The 5-mile trade is sup-ported by a population of nearly 568,000 residents with an affluent average household income of $101,000. The 3-mile trade area boasts an even higher household income of $111,000.