Newtons Outpost Marketing Package

NEWTON’S OUTPOST
A Travel Center Anchored by Pilot

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compliance or lack of compliance with applicable governmental requirements, develop-ability or suitability, finan-
cial performance of the property, projected financial performance of the property for any party’s intended use or
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REAL ESTATE SOLUTIONS

Coldwell Banker Commercial
Investment Team Presents:

 First Time Available For Sale!  Size: ±32 Acres
 Solid Investment Property  Zoned: Commercial
 This center has been in business under  Ideally located on I-15 & Hwy 395
same ownership for over 46 years Interchange
 Located in Hesperia’s Enterprise Zone  Approximate Gross Rental Income:
 Traffic Count ±140,000 Vehicles Daily $621,000
 Over ±2,200’ frontage on Interstate 15  Existing Cap Rate: 5.51%
 Over ±1,000’ frontage on Highway 395  Adjacent Vacant Parcels are Available

Listing Price: $10,500,000

WWW. CBCDesert.com 15500 West Sand St., 2nd Floor Victorville, CA 92392 / 760.684.8000
Coldwell Banker Commer cial and the CBC Logo are regi stered service m arks li censed to Col dwell Banker Commer cial A ffiliates. Each O ffi ce is In dependen tly Owned and O perate d.
All inform ati on containe d herein has been obtained from source s deemed reliable. However, no war ranty or guar antee is made as to the accuracy of the in for mati on.

Property Summary—Newton’s Outpost

Property Description: First time offered for sale in 45 years of operation. Established
in 1965, a rare opportunity to acquire this famous Travel Center
- Parcel 1 + 17.01 Acres Pilot Travel Center
- Parcel 2 + 4.310 Acres Existing Restaurant with Site
Plan for two additional Restaurants
- Parcel 3 + 10.41 Acres Tenants that include: Truck Wash
Business, Truck Lube Business, Truck Tire
Business, Truck Storage, and a 4,000 SF
multi-tenant building

Location: Located in the thriving town of Hesperia, the property serves
the largest developing area of the High Desert with easy
access to Interstate 15 and Highway 395.

Market Area: - From 2000 to 2008 Hesperia’s population grew 37.2%
- The High Desert had the fastest-growing population in San
Bernardino County in 2008, even as population growth
countywide leveled off.

Retail Market Analysis: With the continued population growth in the High Desert, retail
space is continuing to be developed and leased. Demand
for retail space has been a direct result of the sustained
population growth in the area over the past year and previous
decade. Overall the retail market in the High Desert is steady
with a 8.7% vacancy rate, considerably lower than the
neighboring cities. The overall vacancy rate for the High Desert
is 11.1%.

Hesperia Demographics: Current Local Population (2008)* : 85,883
Regional Population (2008)**: 333,414
Avg. Household Size (2008) : 3.27
Median Age (2008): 32.8 years
Home Ownership (2008): 67%
Avg. Household Income (2008):$48,197

Traffic Counts : Interstate 15—Daily Traffic Count of 117,000
U.S. Highway 395—Daily Traffic Count of 23,000


Executive Summary—Newton’s Outpost

ABOUT THE PROPERTY

Newton’s Outpost is a travel center located in Hesperia, California at the intersection of Interstate
15 and Highway 395, in the Victor Valley. The travel center consists of three parcels totaling 32
acres with various structures and building pads.

Originally developed in 1965, Newton’s Outpost has expanded services over the years from a
single fuel station and restaurant to offering a wide range of service for travelers and local
residents. While expansion has taken place throughout the years, only ±26 acres have been fully
developed out of the ±32 total acres in the travel center.

The center’s anchor tenant is Pilot Travel Centers, LLC (parcel 2) featuring a ±10,677 square foot
facility with travel related services including a Wendy’s Hamburger, convenience market,
overnight facilities and petroleum products dispensed through 26 pumps under two individual
canopies, each specifically designed for automobiles and tractor trailers. Pilot Travel Centers, LLC
leased the property in 1999 under a land lease with an original term of twenty years, with two
additional five-year options.

Adjacent to the east of Pilot’s Travel Center is Newton’s Café (parcel 3), a ±4,719 restaurant that
has serviced travelers since the properties inception in 1965. The restaurant has undergone
several transformations throughout the years with the most recent rehabilitation and remodel in
2007. The restaurant, with annual gross sales in excess of $1 million, is currently operated by the
ownership group of Newton’s Outpost and is available as a business opportunity individually, or in
conjunction with the travel center.

Adjacent to Newton’s Café is a modular office utilized by the ownership group totaling ±1,425
square feet. The office is separate from the café and completely fenced.

At the Northeast corner of the travel center is a ±10.41 acres parcel (parcel 5) consisting of four
buildings, totaling ±16,821 square feet with three major tenants; K&S truck Wash, Zippy Lube-a-
Truck and West Coast Truck Tires & Repair. The fourth structure is a multi-tenant building with a
Laundry Service, Insurance Services and two vacant spaces available for lease totaling ±2,000
square feet. In addition to the four buildings, there is a ±3 acre fenced parking lot for daily/
monthly tractor-trailer storage.

All of the above properties, representing a total of ±34,426 square feet and ±31.73 acres, are
included in the Newton’s Outpost offering.


Executive Summary—Newton’s Outpost

ABOUT THE AREA

Total population for the valley is in excess of 400,000, of which approximately 82,000 people
reside in Hesperia alone. While the Valley has experienced a fast growth rate over the past thirty
years, consistently one of the highest in the nation, the opportunity lies in its close proximity to
the Los Angeles basin and commerce that travels to and through the Valley. Annually, over
83,000,000 vehicles and tractor trailers combined travel by Newton’s Outpost.

The Ports of Los Angeles and Long Beach host more than 50% of all freight that is imported into
the United States. The State of California contains the largest economy and population in the
United States, consuming 50% of the freight that comes into the local ports. The remaining 50%
is transported by train, truck, and air and distributed throughout the United States. The majority
of that freight is transported through the I-15 corridor, traveling through the Victor Valley.

As California's job creation leader for more than a decade, Southern California's Inland Empire is
attracting the interest of business, real estate, and site selection executives around the country
and the world. The region's assets are plentiful, and include vast expanses of undeveloped land,
right in the heart of Southern California. Some 27 colleges and universities produce an educated
and highly skilled labor force. Office, commercial, and industrial space is available at extremely
favorable rates compared to adjacent coastal counties.

ABOUT THE OPPORTUNITY

This property represents a unique investment opportunity. The physical location of this property
in Southern California on the I-15 corridor, within an hours drive into the Los Angeles basin,
provides for boundless possibilities, and is considered a rare opportunity, available for the first
time since its original development over 45 years ago.

The property provides positive cash flow with solid tenants in a highly desired corridor, with an
additional ±6 acres ready for development. The potential for a developer to acquire the entire
property and further develop the travel center with additional services and income provides for
unparalleled possibilities.


Information About the Anchor Tenant

Pilot Travel Centers LLC (PTC) is the nation's largest operator of travel centers and largest seller of
over-the-road diesel fuel. It owns and operates over 300 travel centers in 41 states coast to coast,
offering outstanding value and service at attractive and convenient locations. As the largest inter-
state travel center operation in the nation, Pilot Travel Centers LLC expects to sell over 5 billion gal-
lons of petroleum this year.

Pilot was founded in 1958 as a single, family-owned gas station in Gate City, Virginia. In 1976, Pilot
built its first convenience store and began converting the rest of its locations to convenience
stores. Pilot’s first travel center opened in 1981, and travel centers have been the main thrust of
its business ever since.

By 2001 Pilot was operating 65 convenience stores and 140 travel centers in 37 states. On Sep-
tember 1, 2001, Pilot Corporation and Marathon Ashland Petroleum (MAP), now known as Mara-
thon Petroleum Company LLC (MPC), entered into an agreement to form Pilot Travel Centers
(PTC). MPC is the fifth largest refiner of petroleum products in the country. MPC's 974,000 barrels
per calendar day (bpcd) of crude refining capacity represents six percent of the total U.S. capacity.
In February 2003, Pilot acquired Williams Travel Centers.

In 2006, Pilot was recognized as the 10th-largest restaurant franchisee in the United States. Rec-
ognized by SAP Retail, Inc. in 2007 as #30 in the Top 100 Retailers. In 2008, Pilot welcomed a
new partner, CVC Capital Partners, which acquired 47.5 percent interest in Pilot Travel Centers and
facilitated the acquisition of Marathon Petroleum Company's interest.

CORPORATE FACTS:
PTC currently operates and licenses over 300 locations in more than 40 states.
Headquarters: Knoxville, Tennessee
Employees: Approximately 13,000
Annual revenues: $16 billion (2008)

A typical travel center includes one or more nationally known chain restaurants, a broad range of
retail merchandise, automobile and truck fueling facilities, and a variety of other services aimed at
professional drivers and interstate travelers.

RESTAURANT OPERATION:
Each PTC travel center includes at least one restaurant. PTC owns 262 of these restaurants.
PTC's restaurant sales alone in 2007 surpassed $250 million.


Information About the Tenants

Outpost Café — The Outpost Café has been in business since 1965 at this
location. It is well known by locals and travelers alike. It serves the trucking
industry, Las Vegas traffic, and local community. The history of the Café
predates Interstate 15, and goes back to the days of Route 66. The building is
±4,719 square feet.

K & S Truck Wash — ±4,600 SF full service truck wash for the long haul truck
and trailer industry. It has been in operation since the 1990’s.

Zippy Lube-a-Truck — ±3,876 SF Operating since the 1990’s as a full service
truck lube business. One of eleven locations in Southern California.

West Coast Truck Tires and Truck Repair — ±4,275 SF full service truck tire
business established in the 1990’s.

Truck Storage/Parking — Approximately ±2 Acres fenced area where idle trucks
can be stored by the day or by the month.

Retail Building — ±4,070 SF retail building that includes a Laundry Service,
Insurance Business, ±2000 SF foot available for additional tenants.


Parcel Description—Newton’s Outpost

1

3

2

Jos
hu
a Rd

# APN Lot Size Zoning Building SF

1- APN 3039-361-10 ±10.41 Acres Commercial (c2) ±17,650 SF


Maps


Aerials


Photos


Photos—Within the Area

Marriott Courtyard & Spring Hill Suites on the SE corner
of I-15 and Main St in Hesperia


Photos—Within the Area

HI Desert Gateway located on Main St & I-15


Demographics


Drive Time / Traffic Counts

Blue—5 minutes
Red—10 minutes
Green—15+ minutes


Enterprise Tax Zone

Enterprise Tax Zone has been recently awarded and will soon be effective in certain areas within the City
of Hesperia including the subject property. There are specific state tax benefits available to businesses
located in the Enterprise Zone.

Enterprise Zone Incentives include:

 Enterprise Zone companies can earn preference points on state contracts
 Up to 100% Net Operating Loss (NOL) carry-forward. NOL may carry forward 15 years
 Lenders to Zone businesses may receive a net interest deduction
 Up front expensing of certain depreciable property
 Unused tax credits can be applied to future tax years, stretching out the initial benefit of the investment
 Corporations can earn sales tax credits on purchases of $20 Million per year of qualified machinery and
machinery parts
 Firms can earn $37,440 or more in state tax credits for each qualified employee hired.


City of Hesperia — Incentive Programs

Restaurant Rewards: The Restaurant Rewards Program is designed to provide
financial assurances for a new facility to operate in Hesperia’s
underserved market. This is accomplished through an Owner
Participation Agreement (OPA) between the Hesperia
Community Redevelopment Agency (HCRA) and the full service
restaurant. The OPA provides an inducement up to the industry
standard (Hoovers, 2007) net profit margin for a newly
established full service restaurant up to five years, based on
qualifying criteria and financial data submitted to HCRA staff.

Franchise Founders: The Program is intended to encourage entrepreneurs to
establish their niche through the operation of a business within
the community that has brand recognition on a regional or
national level. This motivation is provided in the form of
financial assistance during the business’s critical first five years
of operation, the period where the failure rate is typically
highest. The HCRA will offer secured forgivable loans to
qualified applicants.

Market Area: This new program offers zero interest loans to business/
property owners and independent businesses that are
tenants of commercial properties to encourage appearance
enhancement and commercial viability of Hesperia. The Agency
is offering forgivable 10 year zero percent interest (0%)
financing. Only after 10 years of successful maintenance of all
façade improvements will the owner/tenant be relieved of all
financial obligations to the City/Agency.


Contact Info


15500 W. Sand St, 2nd Floor
Victorville, CA 92392

Main Office: (760) 684-8000
Office Fax: (760) 243-9700

www.cbcDesert.com


Newtons Outpost Marketing Package

Newtons Outpost Marketing Package

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