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HomeMy WebLinkAboutBUXTON_FINAL_REPORT_BALBOA_VILLAGE_200811111111111111111111111111111111111 *NEW FILE* B UXTO N_F 1 NAL_RE PO RT_BA LBOA VILLAGE_2008 0 is ♦OP6\VPORJr` Community/9 Project Overview Executive Summary RetailSite ........................................... Recommended Retailer Profiles 01 ................................................... 4 N Real Estate Requirements..........................................................................................18 Methodologies..............................................................................................................20 Household Segmentation Drive Time Trade Area Glossary of Selected Terms Retailer Analysis and Cannibalization Household Segment Summaries Demographics Thematic Maps Population Population Growth Median Income Property Value Traffic 1�4ewn'"r . CommunitylD®��' • Project Overview Sponsors Leigh DeSantis Economic Development Director 3300 Newport Blvd Newport Beach, CA 92658 Sharon Wood Assistant City Manager P.O. Box 1768 Newport Beach, CA 92658 Purpose of the Final Report CommunitylD is a program that is designed specifically for use in community economic development initiatives. In the Retail Site Determination, Buxton examined the potential for Newport Beach, CA to attract new retailers and restaurants. Buxton analyzed the retail location at Balboa Village and determined the relative viability of the site to recruit the interest of retailers and restaurants. It was determined that Balboa Village does have the potential to attract new • retailers and restaurants. The Final Report is intended to identify specific retailers and restaurants that are most likely to consider Balboa Village as a potential location. Buxton examined thousands of retailers and restaurants using sophisticated, retail -minded analysis to narrow our focus to those with location requirements that best match the site's trade area. Those final selections and the analysis leading to their selection are presented individually in this report. Retail Site The proposed retail site selected by Newport Beach, CA for study in the Final Report is: Retail Site — Newport Beach, CA — Balboa Village — Balboa Blvd & Main St How to Use This Report Newport Beach should review and comprehend the information contained in this report. Using this report, the accompanying marketing packages, and economic development partners, Newport Beach is positioned to develop a strategy to contact and recruit each of the identified retailers. Buxton highly recommends that each retailer be contacted personally and that contact be maintained during the period of time that it takes for a national retailer to consider, select, and approve new locations. 0 ��t\YPpgj CommunitylD®p,,��l . Executive Summary • • Findings In the Retail Site Determination, Buxton studied the retail site within Newport Beach to determine its relative potential to attract new retailers and restaurants. Our analysis indicated that the site would be attractive to several major retailers. Our findings with respect to Balboa Village are summarized as follows: • The potential site possesses large numbers of households with a mix of dominant segment households that appeal to a wide variety of retailers and restaurants. • The potential site benefits from large traffic counts on Balboa Blvd. Overall, this site is well situated to attract a quality mix of desired retailers and restaurants. 2 I'QNWrrnyr r • • Community/9 Executive Summary Selected Retailers and Restaurants Buxton examined thousands of retailers and restaurants to determine those with location requirements that best match the buying habits and demographics within the site's retail trade area. Initially, hundreds of quality matches resulted from our examination, a testament to the character of Balboa Village as an attractive retail location. The initial list was narrowed to approximately 84 targets based upon additional research of each retailer and restaurant. Factors included relative match scores, business strategies and conditions, and proximity to existing locations. Finally, Buxton and Newport Beach met to review and discuss proposed targets in order to make a final selection of retailers and restaurants for which marketing packages would be prepared. Factors considered in this final step included overall desirability, community preferences, the potential tenant mix and other issues specific to the economic development goals of Newport Beach. Retailer Retailer Classification US Locations Blimpie Subs Bakeries/Bagels/Pretzels, Coffee Bars/Juice Bars, Fast Food 1,400 Bruegger's Bagels Bakeries/Bagels/Pretzels, Fast Casual Restaurants 273 Curves Health Clubs/Gyms 10,000 Hair Masters Beauty Salons/Tanning 13,400 Peet's Coffee & Tea Coffee Bars/Juice Bars 170 Sephora Cosmetics/Body Care/Fragrance 214 Smoothie King Coffee Bars/Juice Bars 484 TCBY Candy/Ice Cream/Yogurt 741 True Value Hardware Hardware/Home Improvement 4,100 Village Inn Family Restaurant Bakeries/Bagels/Pretzels, Restaurants/Bars 255 3 4� CommunitylD' • Retail Site 7-Minute Trade Area Segmentation • Each household in the U.S. can be described by one of sixty-six segments, based upon its consumer habits and spending patterns. This graph depicts the segments, by percent of total households that comprise the trade area for the proposed site. A segment that represents at least three percent of a trade area is considered a dominant segment. The chart at the bottom of this page provides household counts and indicates the percent of all households in the trade area that are classified in each dominant segment. Page 6 provides a brief description of dominant segments. The methodology section of this report includes a full description of each segment. 32 9 12 t 3 5 7 9 11 13 15 17 19 21 23 25 37 29 31 33 35 37 39 41 43 45 47 49 51 53 55 A 59 61 63 63 Skj nt Na@oa BW i nun St Doss WIN SeNmeon Description NoaS11hows % of All Nowhohh I Upper Crust 3908 15.46 3 Movers 8 Shakers 2325 9.20 4 Young Digemti 3181 OR 7 Money A Brains 69S6 27.SI 8 Execume Suites 1298 5.13 16 Bohemian Mix 3704 14.65 29 American Dreams 980 3.88 4 Community19 • Retail Site 9-Minute Trade Area Segmentation Each household in the U.S. can be described by one of sixty-six segments, based upon its consumer habits and spending patterns. This graph depicts the segments, by percent of total households that comprise the trade area for the proposed site. A segment that represents at least three percent of a trade area is considered a dominant segment. The chart at the bottom of this page provides household counts and indicates the percent of all households in the trade area that are classified in each dominant segment. The next page provides a brief description of dominant segments. The methodology section of this report includes a full description of each segment. • 1 3 5 7 Y 11 13 15 17 19 21 23 25 27 24 31 33 35 37 39 41 43 45 47 49 51 53 55 5l 34 61 63 65 $«Ym Balboa Wd d Haim St Bow" seAnew Description korsebWs % of All Hm nbil I Upper Crust 6212 16.69 3 Moyers A Shaken 3819 1016 4 Young Digerati 4341 11.66 7 Money A Brains 8363 22.47 8 Executive Suites 1860 5.00 16 Bohemian Mix 5626 15.11 29 American Dreams 1425 3.83 • 5 .2gvaopf„ tV Community19 • Retail Site Dominant Segment Descriptions UPPER CRUST — The nation's most exclusive address, Upper Crust is the wealthiest lifestyle in America —a haven for empty -nesting couples over 55 years old. No segment has a higher concentration of residents earning over $200,000 a year or possessing a postgraduate degree, and none has a more opulent standard of living. MOVERS & SHAKERS — Movers & Shakers is home to America's up-and-coming business class: a wealthy suburban world of dual -income couples who are highly educated, typically between the ages of 35 and 54, often with children. Given its high percentage of executives and white-collar professionals, there is a decided business bent to this segment: Movers & Shakers rank number one for owning a small business and having a home office. YOUNG DIGERATI —Young Digerati are the nation's tech -savvy singles and couples living in fashionable neighborhoods on the urban fringe. Affluent, highly educated and ethnically mixed, Young Digerati communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars —from juice to coffee to microbrew. 7 MONEY & BRAINS — The residents of Money & Brains seem to have it all: high incomes, advanced degrees and sophisticated tastes to match their credentials. Many of these city • dwellers —predominantly white with a high concentration of Asian Americans --are married couples with few children who live in fashionable homes on small, manicured lots. EXECUTIVE SUITES — Executive Suites consists of upper -middle-class singles and couples typically living just beyond the nation's beltways. Filled with significant numbers of Asian Americans and college graduates —both groups are represented at more than twice the national average —this segment is a haven for white-collar professionals drawn to comfortable homes and apartments within a manageable commute to downtown jobs, restaurants and entertainment. 16 BOHEMIAN MIX —A collection of young, mobile urbanites, Bohemian Mix represents the nation's most liberal lifestyles. Its residents are a progressive mix of young singles and couples, students and professionals, Hispanics, Asians, African -Americans and whites. In their funky row houses and apartments, Bohemian Mixers are the early adopters who are quick to check out the latest movie, nightclub, laptop and microbrew. 29 AMERICAN DREAMS —American Dreams is a living example of how ethnically diverse the nation has become: more than half the residents are Hispanic, Asian or African - American. In these multilingual neighborhoods —one in ten residents speaks a language other than English —middle-aged immigrants and their children live in middle-class comfort. 0 ���g{YPOJJ. Community/9�`,_ . Recommended Retailer Profiles Selected Retailers and Restaurants 0 Buxton examined thousands of retailers and restaurants to determine those with location requirements that best match the buying habits and demographics within the site's retail trade area. This analysis identifies potential retailers and restaurants that match the household profile of the trade area. The trade area profile segmentation graph was compared with the profiles of over 4,500 retailers and restaurants. Retailer profiles were created by taking the existing sites of a retailer in the region, getting the segmentation composition within a seven and nine -minute trade area around each site, and determining the average segmentation composition for each retailer. The goal is to match a specific retailer's profile to that of the Newport Beach retail site's trade area profile. Where there is a close match of the retailer's location profile with the household profile of the trade area, the retailer is selected as a target for recruitment. If there is a mismatch of profiles, then obviously the retailer is not considered. The selection of target retailers also takes into account other factors. If a potential target retailer already has a location nearby, it might not be included. Site characteristics, tenant mix, the site's regional setting, and community goals are considered. Our Final Report process yielded a final recommended list of ten retail and restaurant targets. The following sections of this report provide detailed information that documents the selection of each targeted retailer and restaurant. First, general information is provided that describes the location preferences of each company, in addition to contact information. Second, a match report compares the household segmentation of the retail trade area with the household segments that represent the existing customer base for each retailer or restaurant. These match reports summarize the attractiveness of Newport Beach's location for each target. Finally, a map is provided of the retail site trade area, and dominant segment households for each retailer or restaurant are overlayed to construct a compelling visual in support of recruitment efforts. This information is combined with supplemental marketing information to create individual marketing packages that can be used in efforts to recruit each company to Balboa Village. 7 .Nt,vrojf, LI Community/9 Recommended Retailer Profiles Blimpie Subs Blimpie Subs considers locations in enclosed regional and super regional malls, power centers, outlet centers, community strip centers, neighborhood strip centers, pad sites/outparcels, lifestyle centers, mixed use centers, downtown/central business districts, airportitransportation centers, college campuses, hospitals, and freestanding locations. Entertainment and upscale co -tenants are preferred. Their customer base is made up of mid to high income adults and teens. They currently operate in California and have plans for expansion throughout the United States. Contact Information: Senior Vice President of Real Estate Jerry Conklin 9311 E Via de Ventura Scottsdale, AZ 85258 Phone: (480) 362-4314 Fax: (480) 362-481 1 www.blimpie.com The company has requested that all sites be submitted to: realestate@kahalacorp.com i 19 0 r1 Community/D Company: BLIMPIE SUBS & SALADS Report Date: 7/21/2008 Segmentation Profile0) (9 Minute Drive Time)DI 24% 21% 18% c a 15% O E 12% O U e 9% 6% 3% 0% Site: Balboa Blvd & Main St Newport Beach, CA Profile Match Re 1 2 3 4 5 6 7 5 9101112131415161T18192021222324252621MOM313233UMN3/MMQ414243Nd5454)4a4950515253545656USI 9606162135465e5 Company Pile (Dominant SegmentsN3) = Company Profile (All Other Segments) — Site Proffle141 Trade Area Comparison (9 Minute Drive Time) Newport Beach, CA BLIMPIE SUBS & SALADS Site Trade Area Average Trade Area(s) Current Projected Total Population 73,165 82,556 85,253 Total Households 28,656 37,224 38,031 Company Dominant Segment Households 21,054 28,738 29,361 In Segmentation Profile (£) Drive Time (3) Dominant Segments M Site Profile i31 Average Trade Area Every U.S. household is classified into one of 66 distinct segments described by that household's lifestyle and spending habits. Drive time is used to define the trade area. Any segment that makes up at least 3 percent of a retailers targeted profile (RED BARS). Those segments within the site's drive time trade area (BLUE LINE). BLIMPIE SUBS & SALADS trade areas used in this comparison are similar in population and market type to Newport Beach, CA msa,ae. e.aoe ux.r ice. �.. xee. em. �xwv. .. eaa. xeb,.� x�.... a.�... erne v.e.,.enx..xn m e moe. aoeu.o o,. r.woge. ircean tail S. lLdvie lb. h'nn WmW, ]Ym l6/J] ulal]Ji)JMI /r, xl: .. „x.u�n.rxw NTH//.. , r�gvvCrJpq 1 Community/9 0 Recommended Retailer Profiles Bruegger's Bagels Bruegger's Bagels considers locations in power centers, community strip centers, pad sites/outparcels, lifestyle centers, mixed use centers, downtown/central business districts, airport/transportation centers, college campuses, and freestanding locations. Fashion - oriented, upscale, grocery/supermarket, and bookstore co -tenants are preferred. Their customer base is made up of high income adults. They currently operate in California and have plans for expansion throughout the United States. Contact Information: Vice President of Real Estate John Wadhams 159 Bank Street Burlington, VT 05402 Phone: (802) 660-4020 Fax: (802) 652-9293 www.brueggers.com The company has requested that all sites be submitted to: erose@brueggers.com 0 • is 7 Community/D Company: BRUEGGER'S BAGEL BAKERY Site: Balboa Blvd $ Main St Report Date: 7/21/2008 Newport Beach, CA Segmentation Profile(') (9 Minute Drive Tinii 24% 21% 18% C a 15% w 0 E 12% 0 U a` 9% Profile Match Report 1 2 3 4 5 6 1 e g 10/112131415181)1919212122232I25262)Ja]9:tl313i3A aG35363]3939 de41 l2t1 d415 YW)4B495a5152Si 563565l5a59 fi0s+alCf a185 fs - Company Profile (Dominant Segmentsy3) = Company Profile (All Other Segments) — Site Profile(l) Trade Area Comparison (9 Minute Drive Time) Newport Beach, CA BRUEGGER'S BAGEL BAKERY Site Trade Area Average Trade Areas) Current Projected Total Population 81,500 82,556 85,253 Total Households 34,968 37,224 38,031 Company Dominant Segment Households 24,000 31,090 31,764 n1 Segmentation Profile nl Drive Time lal Dominant Segments I•1 Site Profile (5) Average Trade Ares CA Every U.S. household is classified into one of 66 distinct segments described by that household's Iifestyie and spending habits. Drive ame is used to define the trade area. Any segment that makes up at least 3 percent of a retailer's targeted profile (RED BARSi. Those segments within the site's drive time trade area (BLUE LINE). BRUEGGER'S BAGEL BAKERY trade areas used in mis comparison are similar in population and market type to Newport Beach, or.ea,�a,ma.cw.H..e.,m,cw.exn..,,wuin.exu.x.:,.s....ne.a,.ezow, we.�x..w. w.omoe. �.ov+xoc r.wwq,. �..,exaw !pi/.(puLpir 0.. 1>M IFVI/y Rrvr )fil,il u1:NIM31IG1 /wn6PJ31.3.. hxrl--. /ulp:/N.vdunon— y�OVMAT. Community/9 ,.. 0 Recommended Retailer Profiles Curves Curves considers locations in enclosed regional malls, community strip centers, neighborhood strip centers, and freestanding locations. All types of co -tenants are considered. Their customer base is made up of mid income adults and seniors. They currently operate in California and have plans for expansion throughout the United States. Contact Information: Vice President of Franchise Sales Steve Beatty 100 Ritchie Road Waco, TX 76712 Phone: (254) 399-9285 Fax: (254) 399-9731 www.curves.com The company has suggested using their website to locate the nearest franchisee to see if they have an interest in opening another in the area. U m 40 rW CommunitylD • Company: CURVES Report Date: 9/22/2008 Segmentation Profile(') (7 Minute Drive Time)R) 24% 21% 16% c 0 15% O E 12% O U g% 6% 3% 0% Site: Balboa Blvd & Main St Newport Beach, CA Profile Match Report 1 2 3 4 6 6 1 8 910111213l4l5l6l7l8l9M212223242626VMMM3132WUW35n W3940614243U4 M47/ 4WS152MMOMUM6 6061626364mm = Company Profile (Dominant Segments)(3) = Company Profile (All Other Segments) — Site Profile(') Trade Area Comparison (7 Minute Drive Time) Newport Beach, CA CURVES Site Trade Area Average Trade Area01 Current Projected Total Population 51,177 52,647 53,526 Total Households 19,210 25,284 25,570 Company Dominant Segment Households 9,999 16,138 16,321 ('� Segmentation Profile Every U.S. household is classified into one of 66 distinct segments described by that household's lifestyle and spending habits. (11 Drive Time Drive time is used to define the trade area. Dominant Segments Any segment that makes up at least 3 percent of a retailers targeted profile (RED BARS). !° Site Profile Those segments within the site's drive time trade area (BLUE LINE). . sAverage Trade Area CURVES trade areas used in this comparison am similar in population and market type to Newport Beach. CA. tISLt Mwa p.lw/nw]k Trmr EaU] ml: Bll.Ullpl /':Mp.aU.!M1N6 nw�il:Fmux�+Wmwrnnun MnP:/M"+'Furvnr.... i`;_A Communitylg • Recommended Retailer Profiles Hair Masters Hair Masters considers locations in enclosed regional and super regional malls, power centers, outlet centers, community strip centers, neighborhood strip centers, lifestyle centers, and downtown/central business centers. Fashion -oriented, entertainment, outlet, and grocery/superrnnrkat rn_tPnnntc nra nreferred. Their customer base is made uo of mid to high income ad plans for expansior Contact Informatic Real Estate Direc Josh Gardner 7201 Metro Blvd Minneapolis, MN 5 Phone: (817) 230-4 Fax: (817) 886-727 www.hairmasters& n LJ 0 op r CommunitylD • Company: HAIR MASTERS Site: Balboa Blvd & Main St Report Date: 9/22/2008 Newport Beach, CA Segmentation Profile(') (7 Minute Drive Time)PI z F t C 0 Yt 0 O at E 0 U e Profile Match Report (= Company Profile (Dominant Segmentsy3) = Company Profile (All Other Segments) — Site Profile(4) Trade Area Comparison (7 Minute Drive Time) HAIR MASTERS Average Trade AreO1 Current Newport Beach, CA Site Trade Area Projected Total Population 46,273 52,647 53,526 Total Households 18,821 25,284 25,570 Company Dominant Segment Households 11,287 16,243 16,427 II Segmentation Profile (]) Drive Time 0) Dominant Segments i•i Site Profile iei Average Trade Area Every U.S. household is classified into one of 66 distinct segments described by that household's lifestyle and spending habits. Drive time is used to define the trade area. Any segment that makes up at least 3 percent of a retailer's targeted profile (RED BARS). Those segments within the site's dnve time trade area (BLUE LINE). HAIR MASTERS trade areas used in this comparison are similar In population and market type to Newport Beach, CA. u a+o. am+.ewmaw.1,cwoaee.�nan�.,..oaa.xrwn...us....aam u.a.... w.r... �.ewrews..mr.�wr.'x exm \' .M[/\T�{oN[IM. l..n lYun4 Trmr )f1.i) iN: X/I..UL.NF/ fu:X/).AI)..4Yf rwvil/... ... 41 Community/D Company: HAIR MASTERS Report Date: 7/21/2008 C J Segmentation Profile(') (9 Minute Drive Time)(') 24% 21% 18% 0 a 15% O E 12% 0 V e 9% 6% 3% 0% Site: Balboa Blvd $ Main St Newport Beach, EA Profile Match Report 1 2 3 4 5 6 7 8 9 101112131415161718192121222324252677282930W MM3435383738394041424344454647484950515253545 M56 5960516263646566 = Company Profile (Dominant Segmentsy3) = Company Profile (All Other Segments) — Site Pmfilet4) Trade Area Comparison (9 Minute Drive Time) Newport Beach, CA HAIR MASTERS Site Trade Area Average Trade Areal") Current Projected Total Population 77,685 82,556 85,253 Total Households 32,551 37,224 38,031 Company Dominant Segment Households 18,262 22,430 22,916 Segmentation Profile «' Drive Time Dominant Segments Site Profile '5' Average Trade Area Every U.S. household is classified into one of 66 distinct segments desmbed by that household's lifestyle and spending habits. Drive time is used to define the trade area. Any segment that makes up at least 3 percent of a retailer's targeted profile (RED BARS). Those segments within the site's drive time trade area (BLUE LINE). HAIR MASTERS trade areas used m this companson are similar in population and market type to Newport Beach, CA. ox. sa.u. a.n-.a, c+�.a �. e.,,,..ce.nzoe. •wa„x. elooc. x..a.ix...ue.,W.amm v.e...�x..�m. m.exoor. e,wo.ea rw.dwr. m exme ki 1631R AM1 Y W..!'nl 1VMF. If-76137 11I:81M.U..IM1 I :NIIA:.IM1rp r.xW/:Mumxarp�uminmm Imp:/hrv.Iv¢u•m .., .. CommunityIBF . Recommended Retailer Profiles Peet's Coffee & Tea Peet's Coffee & Tea considers locations in community strip centers, neighborhood strip centers, downtown/central business districts, and freestanding locations. All types of co- tenants are considered. Their customer base is made up of mid income adults and seniors. They currently operate in California and have plans for expansion throughout the United States. Contact Information: Real Estate Director Carol Mazzetti 316 Durant Way Mill Valley, CA 94941 Phone: (415) 388-8944 Fax: (415) 388-8966 www.peets.com n LJ • 12 • G Site: Balboa Blvd & Main St Newport Beach, CA Profile Match Report r CommunitylD Company: PEET'S COFFEE & TEA INC Report Date: 9/22/2008 Segmentation Profile(l) (7 Minute Drive Time)(2) r r. t _ Company Profile (Dominant Segments)(a) = Company Profile (All Other Segments) — Site Profile(4) Trade Area Comparison (7 Minute Drive Time) Newport Beach, CA PEET'S COFFEE & TEA INC Site Trade Area Average Trade Area01 Current Projected Total Population 47,917 52,647 53,526 Total Households 20,125 25,284 25,570 Company Dominant Segment Households 15,862 19,156 19,373 �O Segmentation Profile 0) Drive Time (3) Dominant Segments ul Site Profile ist Average Trade Area Every U.S. household is classed into one of 66 distinct segments described by that household's lifestyle and spending habits. Drive tme is used to define the trade area. Any segment that makes up at least 3 percent of a retailer's targeted profile (RED BARS). Those segments within the site's drive time trade area (BLUE LINE). PEET'S COFFEE & TEA INC trade areas used In this comparison are similar in population and market type to Newport Beach, CA. a.s>,a.' --.cw..�.v,M.,cs e�aae..�xw�K.emar.x.e.x.....e.s.exwe x.e.,�..aw... w..eiam.mvs�. o.w r.�m.•sexw l • • r CommunitylD Profile Match Report Company: PEET'S COFFEE & TEA INC Site: Balboa Blvd & Main St Report Date: 7/21/2008 Newport Beach, CA Segmentation Profile(') (9 Minute Drive Time)R) 24% 21% 18% 0 F 15% 0 O CL E 12% 0 U vo 9% 6% 3% 0% 1 2 3 l 5 8 r 8 e 18111913161E 1817 fTAPTT'TTf'r MM9)51 WMN%6 Company Profile (Dominant Segments)(3) M Company Profile (All Other Segments) — Site Proflle(t) Trade Area Comparison (9 Minute Drive Time) Newport Beach, CA PEET'S COFFEE & TEA INC Site Trade Area Average Trade Area01 Current Projected Total Population 18,812 82,556 85,253 Total Households 33,959 37,224 38,031 Company Dominant Segment Households 26,175 31,731 32,425 Segmentation Profile Drive Time Dominant Segments Site Profile Average Trade Area Every U.S. household is classified into one of 66 distinct segments described by that household's lifestyle and spending habits. Drive time is used to define the trade area. Any segment that makes up at least 3 percent of a retailers targeted profile (RED BARS). Those segments within the site's drive time trade area (BLUE LINE). PEETS COFFEE & TEA INC trade areas used in this comparison are similar in population and market type to Newport Beach, CA. 0.0 6a.rm 6ameGw�w. ,x. Rum NCr•.OM. nAWSA nu.OSY NtareN,r�n Bu.va t]Wl NwMR�,W, Im.CFtl.YNVVN � r✓I�YM. KOI6E i i11-nhhm76137 trl: Al:..li`. Lnl OU W.M1 J. r.:mv'I:M1u1m +AYY�n�'mn 11 • • Community/U Recommended Retailer Profiles Sephora Sephora considers locations in enclosed regional and super regional malls, power centers, lifestyle centers, mixed use centers, downtown/central business districts. Fashion -oriented and upscale co -tenants are preferred. Their customer base is made up of mid to high income adults and teens. They currently operate in California and have plans for expansion throughout the Uni` "`-`-- Contact Informatio Vice President of I Celia A Wing 525 Market Street, San Francisco, CA ! Phone: (415) 284-3 Fax: (415) 284-341 www.sephora.com The company has r real.estate@sephor Gv • • Community/D Company: SEPHORA Site: Balboa Blvd & Main St Report Date: 6/25/2008 Newport Beach, CA Segmentation Profilel)) Q Minute Drive Time)9) C 0 a 0 O G E 0 U aa Profile Match Report Company Profile (Dominant Segments)(') - Company Profile (All Other Segments) — Site Profile(4) Trade Area Comparison Q Minute Drive Time) Newport Beach, CA SEPHORA Site Trade Area Avenge Trade Area(s) Current Projected Total Population 56,341 52,647 53,526 Total Households 24,126 25,284 25,570 Company Dominant Segment Households 17,002 20,120 20,348 ('i Segmentation Profile Every U.S. household is classified into one of fib district segments described by that household's lifestyle and spending habits. M Drive Time Drive time is used m define the trade area. (» Dominant Segments Any segment that makes up at least 3 percent of a retailer's targeted profile (RED BARS). 1^ Site Profile Those segments within the site's drive time trade area (BLUE LANE). isi Average Trade Area SEPHORA trade areas used in this comparison are similar in population and market type to Newport Beach, CA. W 9av,e, eubOCWW uq. Rvm NER.OACB.NWy.�rc,OSR,Ntlnw Rum`nev�ru,G30M Ns'w,bwN�Ne.OiLtl.Oe/yi' nOe ltlMpJ. V40]W !RV .i. PnWru A. Pun l4nnA Trmrt )NJ) W.817.332,.W1 /:Mtl.JA!.)RA% r«wiLM1wdxfrLwniwn.ew dMy:/MIxlnvroxmvrmr i ; Community/9 • Recommended Retailer Profiles Smoothie King Smoothie King considers locations in enclosed super regional malls, power centers, outlet centers, community strip centers, neighborhood strip centers, downtown/central business districts, airport/transportation centers, and freestanding locations. Entertainment, upscale, and grocery/supermarket co -tenants are preferred. Their customer base is made up of mid to high income adults and teens. They currently operate in California and have plans for expansion throughout the United States. Contact Information: Executive Vice President and Director of New Business Development Mike Powers 121 Park Place Covington, LA 70433 Phone: (985) 635-6973 Fax:(985) 635-6987 www.smoothieking.com n L.J • 14 CommunitylD Company: SMOOTHIE KING Site: Balboa Blvd & Main St Report Date: 9/22/2008 Newport Beach, CA Segmentation Profile(l) Q Minute Drive Time)(t) 24% 21% 18% said • 3% 0% • Profile Match Report 1 2 3 d 5 87 8 910111213 td 15/61]1819202122Z120252aT/28ae 3o3132333d3536m 3839606162d3d64546d]d8d9505152535155585)�5BBDm 82B38485 Be Fm Company Profile (Dominant Segments)(a) = Company Profile (All Other Segments) — Site Prome( I Trade Area Comparison (7 Minute Drive Time) SMOOTHIE KING Average Trade Area0) Current Newport Beach, CA Site Trade Area Projected Total Population 48,088 52,641 53,526 Total Households 21,129 25,284 2S,510 Company Dominant Segment Households 10,566 8,113 8,872 (') Segmentation Profile to Drive Time rn Dominant Segments (1) Site Profile (61 Average Trade Area Every U.S. household is classed into one of BS distinct segments described by that household's lifestyle and spending habits. Drive time is used to define, the trade area. Any segment that makes up at least 3 percent of a retailer's targeted profile (RED BARS). Those segments within the site's drive time trade area (BLUE LINE). SMOOTHIE KING trade areas used in this comparison are similar in population and market type to Newport Beach, CA. u.s.,,m:..+. son., w,xw.rae,ama,.a 1.wti,,,saan... n...m.iK..oanr. woysw.ox. T.iwn, im.. MA •.:/<Prdwia pr. h'.uinwP Yim 1F/A M: FllJJLIp/ frn�1)AJW nrMl:AWmoOm" ..] Community/9 Recommended Retailer Profiles TCBY TCBY considers locations in enclosed regional and super regional malls, outlet centers, community strip centers, neighborhood strip centers, pad sites/outparcels, lifestyle centers, downtown/central business districts, airport/transportation centers, and freestanding locations. Fashion -oriented, entertainment, and upscale co -tenants are preferred. Their customer base is made up of high income adults. They currently operate in California and have plans for expansion throughout the United States. Contact Information: Franchise Development Manager Bill Knight 2855 East Cottonwood Parkway, Suite 400 Salt Lake City, UT 84121 Phone: (678) 206-5763 www.tcby.com U • 15 • Community/D Company: T C B Y YOGURT Report Date: 9/22/2008 Segmentation Profile(i) (7 Minute Drive Time)9) 24% 21% 19% 0O 15% E 12% 0 U e 9% 6% 3% Profile Match Report Site: Balboa Blvd & Main St Newport Beach, CA r�r.�rrirrrrrrirr��������� an � i ■ �.� 1 2 34 5 6 T 8 9 1011121314151617 1819202122212125262r 20293031 - Company Profile (Dominant Segments)(') - Company Profile (All Other Segments) — She Profile(4) Trade Area Comparison (1 Minute Drive Time) T C B Y YOGURT Average Trade Aream Current Newport Beach, CA Site Trade Area Projected Total Population 46,787 52,647 53,526 Total Households 19,241 2S,284 25,570 Company Dominant Segment Households 13,390 9,348 9,454 Segmentation Profile Every U.S. household is classified into one of 66 disanct segments described by that household's lifestyle and spending habits. =' Drive Time Drive time is used to define the trade area. Dominant Segments Any segment that makes up at least 3 percent of a retailers targeted profile (RED BARS). Site Profile Those segments within the site's drive time trade area (BLUE LINE). Average Trade Area T C B Y YOGURT bade areas used in this comparison are similar in population and market type to Newport Beach. GA- .— . c.r. mv..a...wwi—a.....i.a......w...w........ a.o.i. w. T.w.xm....., . ILT/ ".. AW MF,n wx &rmr.137 w: an.MZMWl % :aJZ332. fi .HOVPogJ . • • • Communityla Recommended Retailer Profiles True Value Hardware True Value Hardware considers locations in enclosed regional malls, community strip centers, neighborhood strip centers, and freestanding locations. All types of co -tenants are considered. Their customer base is made up of mid income adults. They currently operate in California and have plans for expansion throughout the United States. Contact Information: Real Estate Bryan Dudek 8600 West Bryn Mawr Avenue Chicago, IL 60631 Phone: (773) 695-5000 Fax:(773) 695-6516 www.truevaluecompany.com ,) Ee • • Community/D Company: TRUE VALUE HARDWARE Report Date: 9/22/2008 Segmentation Profile(') Q Minute Drive Time)r) C O 0 0 a E 0 U e Profile Match Report Site: Balboa Blvd & Main St Newport Beach, CA 24%--'-------------------- --- 21% -- — 15% _-----._----,_. 12% 9% 3% 0% 1 2 3 4 5 67 8 91011121314151617 1819202122232425262]��303132333435363]3639d06/62436645464]48195051525354 S5 ti:''.X 596061 a283 fi465� Company Profile (Dominant Segments)(31 - Company Profile (All Other Segments) — Site Profile(4) Trade Area Comparison (7 Minute Drive Time) Newport Beach, CA TRUE VALUE HARDWARE Average Trade Areas) Current Site Trade Area Projected Total Population 49,012 52,647 53,526 Total Households 19,297 25,284 25,510 Company Dominant Segment Households 9,864 14,814 14,982 " Segmentation Profile Drive Time Dominant Segments ^' Site Profile " Average Trade Area Every U,S. household is classed into one of fib distinct segments described by that households fdestyle and spending habits. Drive time is used to define the trade area. Any segment that makes up at least 3 percent of a retailer's targeted profile (RED BARS). Those segments within the site's drive time trade area (BLUE LINE). TRUE VALUE HARDWARE trade areas used in this comparison are similar in population and market type to Newport Beach, CA. AUBwrtw BUMrM, °m,�.Ix, V.um X¢B. Y1011.1,YWM Irc, OMY, NYaniflww^Bviuu.O3WB, W'YMMwNv Irc.,01W,4rpyXeBX, itivMw. MCTLB F&M IAMI-111-1.1 J . 17) 11_Iµ6 rmvl:bumu✓Ava+w.ruxP bryv/hvv.Avnrxvm.r.n • F-I r Community/D Company: TRUE VALUE HARDWARE Site: Balboa Blvd & Main St Report Date: 7/21/2008 Newport Beach, CA Segmentation Proftle0) (9 Minute Drive Time)(t) e 9% Profile Match Report D^r 1 2 3 4 5 6 T 6 91011121314151617191920212223?tZMV2829303132333135363)"'A '16243NI5 47049W5152535455555/MMW616263666556 = Company Profile (Dominant Sogmentapal = Company Profile (Alt Other Segments) — Site Profile(4) Trade Area comparison (9 Minute Drive Time) TRUE VALUE HARDWARE Average Trade Aream Current Newport Beach, CA Site Trade Area Projected Total Population 74,251 82,556 85,253 Total Households 28,935 37,224 38,031 Company Dominant Segment Households 13,280 24,944 25,485 Segmentation Profile Drive Time ia, Dominant Segments Site Profile ^'Average Trade Area Every U.S. household is classified into one of 66 distinct segments described by that household's Idestyle and spending habits. Drive time is used to define the trade area. Any segment that makes up at least 3 percent of a retailer's targeted profile (RED BARS). Those segments within me site's drive time trade area (BLUE LINE). TRUE VALUE HARDWARE trade areas used in this comparison are similar in population and market type to Newport Beach, CA. m.sw— e..a.s. c..,.... e.... c mm..we m..rv... e...a. e............ ro—. K....e .M a......m..,... /V M(I.0 iL.m/�/M. fun Run/�T�m 16)J) rr/: NIIJ)s.JG/ fw:N/).!J).JIM nivvltMuliw4. Dii. �...� .m Community/U Is Recommended Retailer Profiles Village Inn Family Restaurant Village Inn Family Restaurant considers locations in power centers, outlet centers, community strip centers, neighborhood strip centers, pad sites/outparcels, lifestyle centers, mixed use centers, downtown/central business districts, and freestanding locations. Grocery/supermarket co -tenants are preferred. Their customer base is made up of low to mid income adults, children, teens, and seniors. They currently operate in California and have plans for expansion throughout the United States. Contact Information: Vice President of Real Estate Frank J Scherer 400 West 48`^ Avenue Denver, CO 80216 Phone: (303) 672-2302 Fax: (303) 672-2607 www.villageinn.com • • 17 • CommunitylD Company: VILLAGE INN FAMILY RESTAURANT Site: Balboa Blvd $ Main St Report Date: 7/21/2008 Newport Beach, CA Profile Match Report Segmentation Profile(() (9 Minute Drive Time)Lll 24°i° -- — — --- 21 Mo 1ai° --- — — — — — .. ----- e 0 0 E 12% 0 U 0 9% - --'--i-- 6% 3%- — 0% . 1 2 3 4 5 6 7 8 9 1011121314151e111819202122MAM252728293031 3233313536373839404142�3NL5464748195051525156556657 9 Dfi1828;i 86�88 Company Profile (Dominant SegmentSy3) = Company Profile (All Other Segments) — Site Profile(4) Trade Area Comparison (9 Minute Drive Time) Newport Beach, CA VILLAGE INN FAMILY RESTAURANT Site Trade Area Average Trade Area(') Current Projected Total Population 75,008 82,556 85,253 Total Households 29,527 37,224 38,031 Company Dominant Segment Households 21,523 31,646 32,332 (1) Segmentation Profile al Drive Time 13) Dominant Segments M Site Profile I51 Average Trade Area Beach, CA. Every U.S. household is classified into one o166 district segments described by that household's rdestyle and spending habits. Dnve time is used to define the trade area. Any segment that makes up at least 3 percent of a retailer's targeted profile (RED BARS). Those segments within the site's drive time trade area (BLUE LINE). VILLAGE INN FAMILY RESTAURANT trade areas used in this comparison are similar In population and market type to Newport wesow.« a,aa cam.. k. awe crs. cxooe. �+wx iR. c ,ae.m�. a...m �K.ea». anvs�as 1w�. ixemoe I I , "IF". wnrlA P— 76137 IA-817.M.W1 . ., , I I r�F vje44ington o 1• City c, one Norman I S Cal:afJ'a; I'l ili .'tf Te"'VIiI'l r ! h P cableG`'1 Lake �rz „ 41 erri�n (;sand La �aY�tts�°1i41�a Irg c'hery :gS ® , 'v it Da F.0 5 59 Eutaula $ Lake 71 yoT sr", NATIONAL ._ Community/U .a4,vrogf. Real Estate Requirements Potential Tenant Space Needs The space needs of the recommended potential tenants aid in the determination of the overall land area needed for the proposed retail center. The table below illustrates the preferred gross leasable area (GLA) for each of the individual recommended retailers. Many of the retailers have a range of preferred GLA, indicating their individual flexibility in space needed. Retailer/Restaurant Preferred GLA Blimpie Subs 300 — 1,500 Bruegger's Bagels 1,500 — 2,100 Curves 1,000— 1,500 Hair Masters 900 — 1,200 Peet's Coffee & Tea 1,200 — 2,000 Sephora 5,200 — 5,700 Smoothie King 800— 1,200 TCBY 1,000 True Value Hardware 3,500 — 15,000 Village Inn Family Restaurant 4,500 n LJ 0 U fi��\vPpQ�,r Community/9�r'°z Real Estate Requirements -continued Gross Leasable Area Required To estimate the Gross Leasable Area (GLA) required for the retail center, preferred GLA amounts were combined to create total amounts. Using an average of 25 retailers in the center, a total GLA requirement can be estimated. The exact requirements cannot be calculated due to the wide ranges in preferred GLA for some of the retailers. Based on the recommended retailers and their specific ranges, a retail center with 25 retailers would be approximately 200,000 - 300,000 GLA. The retail center ranges were determined using larger retailers as anchors for the center. GLA ranges are an estimate to allow variation based on the potential retailers. Depending on the combination of retailers, the estimated size of the retail center can change. Parking Requirements Parking requirements can be estimated by the GLA for the retail center. Information on parking requirements was attained through the Directory of Major Malls by identifying existing sites with similar GLA to assess the parking. The following chart shows the estimated parking requirements for the GLA ranges for a retail center with 25 retailers. is GLA Estimated Parking Spaces 200,000 1,250 300,000 1,300 350,000 1,600 550,000 2,550 Total Land Area Total land area is estimated by combining the space needs for the retailers and the parking requirements necessary for specific sizes of retail centers. Acreage required for the retail centers was approximated using a 3 to I ratio from the retail center size to the total in order to determine total land area for the retail center. The chart below indicates the estimated total land area needed for the different GLA ranges. GLA Estimated Acres of Land 200,000 14 300,000 21 350,000 24 550,000 38 LJ E 0 • r Community/9 Methodologies Introduction CommunitylD uses the latest technologies including extensive databases and geographic information systems to analyze a community's retail potential. This section describes the research methodologies. Profiling and Segmentation Profiling and segmenting household data creates the picture of customers on a psychographic basis, giving us the ability to distinguish amongst demographically similar households anywhere in the United States. Technically, segmentation is a standardized method of classifying, sorting, and grouping people. Segmentation classifies households into distinct socioeconomic groups and measures households according to lifestyles and behavior patterns. Millions of customer transactions are analyzed and grouped on an annual basis to determine similar purchasing habits, which are used to develop psychographics. Compared to traditional broad -based demographics, the psychographic approach is more focused and produces results that are more accurate. i 00 ••o C • • 6 • • AL • • • • • •� • • • • •• • • • • • •• Households by Segment (example) Segments ♦1 •5 •11 •15 016 ♦17 •18 ♦ 20 • 22 • 25 • 26 • 27 028 • 29 030 031 035 038 ♦41 ♦ 42 ♦ 43 ♦ 46 OW rma Community/9 40 Methodologies - continued The advantage of this system is the ability to integrate behavioral, demographic, and most importantly, consumer spending habits into models that describe any household in the United States. These models not only describe age, income, and education, but also the investments and purchases a household is likely to make. The customer segmentation system has been thoroughly tested and is well recognized by retailers, services, and restaurants. CommunitylD identifies 66 customer segments nationally, ranging from "Upper Crust" at the highest level of the socioeconomic continuum to "Low -Rise Living" at the lowest level. The importance of customer segmentation to this study is that once the dominant segments of the area are known, this "profile" will be recognizable to any retailer in the country. For example, if it is discovered that segment one, "Upper Crust," appears with more frequency in the study site trade area than the national average, retailers who market to that segment may find the area attractive as a new location. The figure below shows the household segmentation profile for the United States. is PCICCOIage • U.S. Segmentation Profile 1 J 6 ) V 11 1) 16 II I YI $J 26 ]l RI JI I II JI J> CI 1] II II II 61 61 66 11 11 61 II I 21 a �cWrOaf. CommunitylD® . Methodologies - continued Drive -Time Trade Area r1 LJ • People today shop by convenience and measure distance in time, not miles. Therefore, CommunitylD utilizes a comprehensive database that can determine the time it takes to travel between any two points anywhere in the U.S. A custom drive -time trade area is determined for your sites based on how far customers are willing to travel to purchase various products and services. Traditional trade area methodology uses concentric rings around a site location. Concentric rings do not account for both human behavior and physical geography that may influence how and why a customer patronizes an area. Because of the limitations of concentric rings, Buxton has developed the technology required to define a trade area according to the amount of time it takes to drive to a location. A drive -time is the surrounding geography of a site where individuals in a household can reach that site within a set amount of time, such as 7 and 9-Minutes. Unlike a circular trade area definition, a drive -time trade area can be irregularly shaped because of the particular configuration of the local road network, differences in maximum speeds on various roads, geographic barriers, etc. 22 6\VPO�)j lid ��i�`�„' CommunitylD® ` Methodologies - continued • Glossary Average Household Income — The total income of a geography divided by the number of households in the same geography. Cannibalization — A situation in which one retail site attracts (cannibalizes) customers from an existing retail site of the same retailer, reducing the existing store's customer base and sales. Simply, it is the loss of sales of an existing store when a new store location opens nearby. Demand — The amount spent on a commodity within a certain geography in relation to the average amount spent on that commodity. Drive -Time — The surrounding geography of a site where individuals in a household can reach that site within a set amount of time, such as seven and nine minutes. Unlike a circular trade area definition, a drive -time trade area can be irregularly shaped because of the particular configuration of the local road network, differences in maximum speeds on various roads, geographic barriers, etc. Median Household Income — The income figure within a geography where half of the incomes are higher and half of the incomes are lower. • Psychographics — Household level lifestyle patterns, behavior, and purchasing habits of a particular consumer, as opposed to traditional demographics which provide general information about income, age, and ethnicity. Retail Trade Potential — The estimate of total retail sales that could potentially exist within a geography based on the Survey of Retail Trade, demographics, and retail sales forecasts. • Segmentation — A standardized method of classifying, sorting, and grouping households. CommunitylD identifies 66 customer segments nationally, ranging from "Upper Crust" at the highest level of the socioeconomic continuum to "Low -Rise Living" at the lowest level. Trade Area — The geography where the majority of a retailer's customers reside, usually expressed in distance or time. The zone trade area profile illustrates the households existing within the trade area for the zone. Typically, profiles of the trade area will illustrate a more representative picture of what segments are most likely to be core customer segments because it encompasses a larger area and number of households. 23 .�F�vrrikTP � Community/9 ' • Methodologies — continued Retailer Analysis • • The retailer analysis aspect of this study identifies potential retailers and restaurants for the designated zone. To begin, CommunitylD creates a household profile of the subject trade area. This trade area segmentation graph is then compared with segmentation graphs of more than 4,500 retailers and restaurants to identify appropriate matches. These retail profiles represent that specific retailer's target area profile. The goal is to match the subject trade area to the average trade area targeted by the retailers. To create the retailer profiles, CommunitylD plotted all of a retailer's sites in the USA and determined the profile within a 7 or 9-Minute trade area around each site. This information is used to establish the average segmentation composition for each retailer. These retailers are ranked based on how well their segmentation graphs match the segmentation graph of the existing population composition. Cannibalization Cannibalization occurs when one retail site attracts, or cannibalizes, customers from an existing retail site of the same retailer, reducing the existing store's core customer base and sales. Simply, it is the loss of sales of an existing store when a new store location opens nearby. 24 Community/9 • Methodologies — continued Household Segments — Brief Descriptions • UPPER CRUST — The nation's most exclusive address, Upper Crust is the wealthiest lifestyle in America —a haven for empty -nesting couples over 55 years old. No segment has a higher concentration of residents earning over $200,000 a year or possessing a postgraduate degree, and none has a more opulent standard of living. 2 BLUE BLOOD ESTATES — Blue Blood Estates is a family portrait of suburban wealth, a place of million -dollar homes and manicured lawns, high -end cars and exclusive private clubs. The nation's second -wealthiest lifestyle, it is characterized by married couples with children, college degrees, a significant percentage of Asian Americans and six - figure incomes earned by business executives, managers and professionals. 3 MOVERS & SHAKERS — Movers & Shakers is home to America's up-and-coming business class: a wealthy suburban world of dual -income couples who are highly educated, typically between the ages of 35 and 54, often with children. Given its high percentage of executives and white-collar professionals, there is a decided business bent to this segment: Movers & Shakers rank number one for owning a small business and having a home office. 4 YOUNG DIGERATI — Young Digerati are the nation's tech -savvy singles and couples living in fashionable neighborhoods on the urban fringe. Affluent, highly educated and ethnically mixed, Young Digerati communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars —from juice to coffee to microbrew. 5 COUNTRY SQUIRES — The wealthiest residents in exurban America live in Country Squires, an oasis for affluent Baby Boomers who have fled the city for the charms of small-town living. In their bucolic communities noted for their recently built homes on sprawling properties, the families of executives live in six -figure comfort. Country Squires enjoy country club sports like golf, tennis and swimming as well as skiing, boating and biking. 6 WINNER'S CIRCLE — Among the wealthy suburban lifestyles, Winner's Circle is the youngest, a collection of mostly 25- to 34-year-old couples with large families in new - money subdivisions. Surrounding their homes are the signs of upscale living: recreational parks, golf courses and upscale malls. With a median income of nearly $90,000, Winner's Circle residents are big spenders who like to travel, ski, go out to eat, shop at clothing boutiques and take in a show. 25 ,+o4H0.`aS. Community/9 Household Segments — Brief Descriptions • 7 MONEY & BRAINS — The residents of Money & Brains seem to have it all: high incomes, advanced degrees and sophisticated tastes to match their credentials. Many of these city dwellers —predominantly white with a high concentration of Asian Americans —are married couples with few children who live in fashionable homes on small, manicured lots. 8 EXECUTIVE SUITES — Executive Suites consists of upper -middle-class singles and couples typically living just beyond the nation's beltways. Filled with significant numbers of Asian Americans and college graduates —both groups are represented at more than twice the national average —this segment is a haven for white-collar professionals drawn to comfortable homes and apartments within a manageable commute to downtown jobs, restaurants and entertainment. 9 BIG FISH, SMALL POND — Older, upper-class, college -educated professionals, the members of Big Fish, Small Pond are often among the leading citizens of their small- town communities. These upscale, empty -nesting couples enjoy the trappings of success, belonging to country clubs, maintaining large investment portfolios and spending freely on computer technology. 10 SECOND CITY ELITE — There's money to be found in the nation's smaller cities, and you're most likely to find it in Second City Elite. The residents of these satellite cities • tend to be prosperous executives who decorate their $200,000 homes with multiple computers, large -screen TV sets and an impressive collection of wines. With more than half holding college degrees, Second City Elite residents enjoy cultural activities — from reading books to attending theater and dance productions. • I I GOD'S COUNTRY — When city dwellers and suburbanites began moving to the country in the 1970's, God's Country emerged as the most affluent of the nation's exurban lifestyles. Today, wealthier communities exist in the hinterlands, but God's Country remains a haven for upper -income couples in spacious homes. Typically college -educated Baby Boomers, these Americans try to maintain a balanced lifestyle between high -power jobs and laid-back leisure. 12 BRITE LITES, LI'L CITY — Not all of the America's chic sophisticates live in major metros. Brite Lights, Li'I City is a group of well-off, middle-aged couples settled in the nation's satellite cities. Residents of these typical double income, no kids households have college educations, well -paying business and professional careers and swank homes filled with the latest technology. 26 Q PV {VPOQ� CommunitylD®VV L1 Household Segments — Brief Descriptions • 13 UPWARD BOUND — More than any other segment, Upward Bound appears to be the home of those legendary Soccer Moms and Dads. In these small satellite cities, upper-class families boast dual incomes, college degrees and new split-levels and colonials. Residents of Upward Bound tend to be kid -obsessed, with heavy purchases of computers, action figures, dolls, board games, bicycles and camping equipment. 14 NEW EMPTY NESTS — With their grown-up children recently out of the house, New Empty Nests is composed of upscale older Americans who pursue active --and activist lifestyles. Nearly three-quarters of residents are over 65 years old, but they show no interest in a rest -home retirement. This is the top -ranked segment for all- inclusive travel packages; the favorite destination is Italy. 15 POOLS & PATIOS — Formed during the postwar Baby Boom, Pools & Patios has evolved from a segment of young suburban families to one for mature, empty -nesting couples. In these stable neighborhoods graced with backyard pools and patios the highest proportion of homes were built in the 1960's—residents work as white-collar managers and professionals, and are now at the top of their careers. 16 BOHEMIAN MIX — A collection of young, mobile urbanites, Bohemian Mix represents the nation's most liberal lifestyles. Its residents are a progressive mix of young singles and couples, students and professionals, Hispanics, Asians, African -Americans and • whites. In their funky row houses and apartments, Bohemian Mixers are the early adopters who are quick to check out the latest movie, nightclub, laptop and microbrew. 40 17 BELTWAY BOOMERS — The members of the postwar Baby Boom are all grown up. Today, these Americans are in their forties and fifties, and one segment of this huge cohort —college -educated, upper -middle-class and home -owning —is found in Beltway Boomers. Like many of their peers who married late, these Boomers are still raising children in comfortable suburban subdivisions, and they're pursuing kid -centered lifestyles. 18 KIDS & CUL-DE-SACS — Upscale, suburban, married couples with children is the description of Kids & Cul-de-Sacs, an enviable lifestyle of large families in recently built subdivisions. With a high rate of Hispanic and Asian Americans, this segment is a refuge for college -educated, white-collar professionals with administrative jobs and upper -middle-class incomes. Their nexus of education, affluence and children translates into large outlays for child -centered products and services. 27 Community/9 • Household Segments — Brief Descriptions 19 HOME SWEET HOME — Widely scattered across the nation's suburbs, the residents of Home Sweet Home tend to be upper -middle-class married couples living in mid- sized homes with few children. The adults in the segment, mostly between the ages of 25 and 54, have gone to college and hold professional and white-collar jobs. With their upscale incomes and small families, these folks have fashioned comfortable lifestyles, filling their homes with toys, TV sets and pets. 20 FAST -TRACK FAMILIES — With their upper -middle-class incomes, numerous children and spacious homes, Fast -Track Families are in their prime acquisition years. These middle-aged parents have the disposable income and educated sensibility to want the best for their children. They buy the latest technology with impunity: new computers, DVD players, home theater systems and video games. They take advantage of their rustic locales by camping, boating and fishing. 21 GRAY POWER — The steady rise of older, healthier Americans over the past decade has produced one important by-product: middle-class, home -owning suburbanites who are aging in place rather than moving to retirement communities. A segment of older, mid -scale singles and couples who live in quiet comfort, Gray Power reflects this trend. 22 YOUNG INFLUENTIALS — Once known as the home of the nation's yuppies, Young Influentials reflects the fading glow of acquisitive yuppiedom. Today, the segment is a common address for young, middle-class singles and couples who are more preoccupied with balancing work and leisure pursuits. Having recently left college dorms, they now live in apartment complexes surrounded by ball fields, health clubs and casual -dining restaurants. 23 GREENBELT SPORTS —A segment of middle-class exurban couples, Greenbelt Sports is known for its active lifestyle. Most of these middle-aged residents are married, college -educated and own new homes; about a third have children. And few segments have higher rates for pursuing outdoor activities such as skiing, canoeing, backpacking, boating and mountain biking. 24 UP-AND-COMERS — Up -and -Comers is a stopover for young, mid -scale singles before they marry, have families and establish more deskbound lifestyles. Found in second -tier cities, these mobile twenty -somethings include a disproportionate number of recent college graduates who are into athletic activities, the latest technology and nightlife entertainment. 25 COUNTRY CASUALS — There's a laid-back atmosphere in Country Casuals, a collection of middle-aged, upper -middle-class households that have started to empty - nest. Workers here —and most households boast two earners —have well -paying blue- or white-collar jobs, or own small businesses. Today these Baby -Boom couples have the disposable income to enjoy traveling, owning timeshares and going out to eat. 28 i Community/9 • Household Segments — Brief Descriptions 26 THE COSMOPOLITANS — Educated, mid -scale and multi -ethnic, The Cosmopolitans are urbane couples in America's fast-growing cities. Concentrated in a handful of metros —such as Las Vegas, Miami and Albuquerque —these households feature older home -owners, empty -nesters and college graduates. A vibrant social scene surrounds their older homes and apartments, and residents love the nightlife and enjoy leisure - intensive lifestyles. • 27 MIDDLEBURG MANAGERS — Middleburg Managers arose when empty -nesters settled in satellite communities which offered a lower cost of living and more relaxed pace. Today segment residents tend to be middle-class and over 55 years old with solid managerial jobs and comfortable retirements. In their older homes, they enjoy reading, playing musical instruments, indoor gardening and refinishing furniture. 28 TRADITIONAL TIMES — Traditional Times is the kind of lifestyle where small-town couples nearing retirement are beginning to enjoy their first empty -nest years. Typically in their fifties and sixties, these middle-class Americans pursue a kind of granola -and -grits lifestyle. On their coffee tables are magazines with titles ranging from Country Living and Country Home to Gourmet and Forbes. But they're big travelers, especially in recreational vehicles and campers. 29 AMERICAN DREAMS — American Dreams is a living example of how ethnically diverse the nation has become: more than half the residents are Hispanic, Asian or African -American. In these multilingual neighborhoods —one in ten residents speaks a language other than English —middle-aged immigrants and their children live in middle- class comfort. 30 SUBURBAN SPRAWL — Suburban Sprawl is an unusual American lifestyle: a collection of mid -scale, middle-aged singles and couples living in the heart of suburbia. Typically members of the Baby Boom generation, they hold decent jobs, own older homes and condos, and pursue conservative versions of the American Dream. Among their favorite activities are jogging on treadmills, playing trivia games and renting videos. 31 URBAN ACHIEVERS — Concentrated in the nation's port cities, Urban Achievers is often the first stop for up-and-coming immigrants from Asia, South America and Europe. These young singles and couples are typically college -educated and ethnically diverse: about a third are foreign -born, and even more speak a language other than English. 29 .�pvrny , CommunitylD® Household Segments — Brief Descriptions • 32 NEW HOMESTEADERS — Young, middle-class families seeking to escape suburban sprawl find refuge in New Homesteaders, a collection of small rustic townships filled with new ranches and Cape Cods. With decent -paying jobs in white-collar and service industries, these dual -income couples have fashioned comfortable, child -centered lifestyles, their driveways filled with campers and powerboats, their family rooms with PlayStations and Game Boys. 0 33 BIG SKY FAMILIES — Scattered in placid towns across the American heartland, Big Sky Families is a segment of young rural families who have turned high school educations and blue-collar jobs into busy, middle-class lifestyles. Residents like to play baseball, basketball and volleyball in addition to going fishing, hunting and horseback riding. To entertain their sprawling families, they buy virtually every piece of sporting equipment on the market. 34 WHITE PICKET FENCES — Midpoint on the socioeconomic ladder, residents in White Picket Fences look a lot like the stereotypical American household of a generation ago: young, middle-class, married with children. But the current version is characterized by modest homes and ethnic diversity —including a disproportionate number of Hispanics and African -Americans. 35 BOOMTOWN SINGLES — Affordable housing, abundant entry-level jobs and a thriving singles scene— all have given rise to the Boomtown Singles segment in fast-growing satellite cities. Young, single and working-class, these residents pursue active lifestyles amid sprawling apartment complexes, bars, convenience stores and laundromats. 36 BLUE-CHIP BLUES — Blue -Chip Blues is known as a comfortable lifestyle for young, sprawling families with well -paying blue-collar jobs. Ethnically diverse —with a significant presence of Hispanics and African -Americans —the segmenes aging neighborhoods feature compact, modestly priced homes surrounded by commercial centers that cater to child -filled households. 37 MAYBERRY-VILLE — Like the old Andy Griffith Show set in a quaint picturesque berg, Mayberry-ville harks back to an old-fashioned way of life. In these small towns, middle-class couples and families like to fish and hunt during the day, and stay home and watch TV at night. With lucrative blue-collar jobs and moderately priced housing, residents use their discretionary cash to purchase boats, campers, motorcycles and pickup trucks. 30 • Q q / yp e'i Qi'J _ Community19 Household Segments — Brief Descriptions 38 SIMPLE PLEASURES — With more than two-thirds of its residents over 65 years old, Simple Pleasures is mostly a retirement lifestyle: a neighborhood of lower -middle-class singles and couples living in modestly priced homes. Many are high school -educated seniors who held blue-collar jobs before their retirement, and a disproportionate number served in the military; no segment has more members of veterans clubs. 39 DOMESTIC DUOS — Domestic Duos represents a middle-class mix of mainly over-55 singles and married couples living in older suburban homes. With their high-school educations and fixed incomes, segment residents maintain an easy-going lifestyle. Residents like to socialize by going bowling, seeing a play, meeting at the local fraternal order or going out to eat. 40 CLOSE -IN COUPLES — Close -In Couples is a group of predominantly African - American couples living in older homes in the urban neighborhoods of mid -sized metros. High school educated and empty nesting, these 55-year-old-plus residents typically live in older city neighborhoods, enjoying secure and comfortable retirements. 41 SUNSET CITY BLUES — Scattered throughout the older neighborhoods of small cities, Sunset City Blues is a segment of lower -middle-class singles and couples who have retired or are getting close to retirement. These empty -nesters tend to own their homes but have modest educations and incomes. They maintain a low-key lifestyle filled with newspapers and television by day, and family -style restaurants at night 42 RED, WHITE & BLUES — The residents of Red, White & Blues typically live in exurban towns rapidly morphing into bedroom suburbs. Their streets feature new fast-food restaurants, and locals have recently celebrated the arrival of chains like Wal-Mart, Radio Shack and Payless Shoes. Middle-aged, high school educated and lower -middle class, these folks tend to have solid, blue-collar jobs in manufacturing, milling and construction. 43 HEARTLANDERS — America was once a land of small middle-class towns, which can still be found today among Heartlanders. This widespread segment consists of middle- aged couples with working-class jobs living in sturdy, unpretentious homes. In these communities of small families and empty -nesting couples, Heartlanders pursue a rustic lifestyle where hunting and fishing remain prime leisure activities along with cooking, sewing, camping and boating. 31 • Ll Community/U '�¢';��� Household Segments — Brief Descriptions 44 NEW BEGINNINGS — Filled with young, single adults, New Beginnings is a magnet for adults in transition. Many of its residents are twenty -something singles and couples just starting out on their career paths —or starting over after recent divorces or company transfers. Ethnically diverse —with nearly half its residents Hispanic, Asian or African -American —New Beginnings households tend to have the modest living standards typical of transient apartment dwellers. 45 BLUE HIGHWAYS — On maps, blue highways are often two-lane roads that wind through remote stretches of the American landscape. Among lifestyles, Blue Highways is the standout for lower -middle-class couples and families who live in isolated towns and farmsteads. Here, Boomer men like to hunt and fish; the women enjoy sewing and crafts, and everyone looks forward to going out to a country music concert. 46 OLD GLORIES — Old Glories are the nation's downscale suburban retirees, Americans aging in place in older apartment complexes. These racially mixed households often contain widows and widowers living on fixed incomes, and they tend to lead home -centered lifestyles. They're among the nation's most ardent television fans, watching game shows, soaps, talk shows and newsmagazines at high rates. 47 CITY STARTUPS — In City Startups, young, multi -ethnic singles have settled in neighborhoods filled with cheap apartments and a commercial base of cafes, bars, Laundromats and clubs that cater to twenty -somethings. One of the youngest segments in America —with ten times as many college students as the national average —these neighborhoods feature low incomes and high concentrations of Hispanics and African -Americans. 48 YOUNG & RUSTIC — Like the soap opera that inspired its nickname, Young & Rustic is composed of young, restless singles. Unlike the glitzy soap denizens, however, these folks tend to be lower income, high school -educated and live in tiny apartments in the nation's exurban towns. With their service industry jobs and modest incomes, these folks still try to fashion fast -paced lifestyles centered on sports, cars and dating. 49 AMERICAN CLASSICS — They may be older, lower -middle class and retired, but the residents of American Classics are still living the American Dream of home ownership. Few segments rank higher in their percentage of home owners, and that fact alone reflects a more comfortable lifestyle for these predominantly white singles and couples with deep ties to their neighborhoods. 32 �tit6\Yc�%/OIQJw.A 144 n'�o\ `�91Yf'Y Community/9 • Household Segments — Brief Descriptions 50 KID COUNTRY, USA — Widely scattered throughout the nation's heartland, Kid Country, USA is a segment dominated by large families living in small towns. Predominantly white with an above -average concentration of Hispanics, these young working-class households include homeowners, renters and military personnel living in base housing; about 20 percent of residents own mobile homes. • 51 SHOTGUNS & PICKUPS — The segment known as Shotguns & Pickups came by its moniker honestly: it scores near the top of all lifestyles for owning hunting rifles and pickup trucks. These Americans tend to be young, working-class couples with large families —more than half have two or more kids —living in small homes and manufactured housing. Nearly a third of residents live in mobile homes, more than any other segment. 52 SUBURBAN PIONEERS — Suburban Pioneers represents one of the nation's eclectic lifestyles, a mix of young singles, recently divorced and single parents who have moved into older, inner -ring suburbs. They live in aging homes and garden -style apartment buildings where the jobs are blue-collar and the money is tight. What unites these residents —a diverse mix of whites, Hispanics and African -Americans —is a working- class sensibility and an appreciation for their off -the -beaten -track neighborhoods. 53 MOBILITY BLUES — Young singles and single parents make their way to Mobility Blues, a segment of working-class neighborhoods in America's satellite cities. Racially mixed and under 25 years old, these transient Americans tend to have modest lifestyles due to their lower -income blue-collar jobs. Surveys show they excel in going to movies, playing basketball and shooting pool. 54 MULTI-CULTI MOSAIC — An immigrant gateway community, Multi-Culti Mosaic is the urban home for a mixed populace of younger Hispanic, Asian and African -American singles and families. With nearly a quarter of the residents foreign born, this segment is a Mecca for first -generation Americans who are striving to improve their lower - middle -class status. 55 GOLDEN PONDS — Golden Ponds is mostly a retirement lifestyle, dominated by downscale singles and couples over 65 years old. Found in small bucolic towns around the country, these high school -educated seniors live in small apartments on less than $25,000 a year; one in five resides in a nursing home. For these elderly residents, daily life is often a succession of sedentary activities such as reading, watching TV, playing bingo and doing craft projects. 33 I'QN6{VPOgI� O�OS �y I Community/9 Household Segments — Brief Descriptions 56 CROSSROADS VILLAGERS — With a population of middle-aged, blue-collar couples and families, Crossroads Villagers is a classic rural lifestyle. Residents are high school - educated with lower -middle incomes and modest housing; one -quarter live in mobile homes. There's an air of self-reliance in these households as Crossroads Villagers help put food on the table through fishing, gardening and hunting. 57 OLD MILLTOWNS — America's once -thriving mining and manufacturing towns have aged —as have the residents in Old Milltowns communities. Today, the majority of residents are retired singles and couples living on downscale incomes in pre-1960 homes and apartments. For leisure they enjoy gardening, sewing, socializing at veterans clubs or eating out at casual restaurants. 58 BACK COUNTRY FOLKS — Strewn among remote farm communities across the nation, Back Country Folks are a long way away from economic paradise. The residents tend to be poor, over 55 years old and living in older, modest -sized homes and manufactured housing. Typically, life in this segment is a throwback to an earlier era when farming dominated the American landscape. 59 URBAN ELDERS — For Urban Elders —a segment located in the downtown neighborhoods of such metros as New York, Chicago, Las Vegas and Miami —life is often an economic struggle. These communities have high concentrations of Hispanics • and African -Americans and tend to be downscale, with singles living in older apartment rentals. • 60 PARK BENCH SENIORS — Park Bench Seniors are typically retired singles living in the racially mixed neighborhoods of the nation's satellite cities. With modest educations and incomes, these residents maintain low-key, sedentary lifestyles. Theirs is one of the top -ranked segments for TV viewing, especially daytime soaps and game shows. 61 CITY ROOTS — Found in urban neighborhoods, City Roots is a segment of lower - income retirees, typically living in older homes and duplexes they've owned for years. In these ethnically diverse neighborhoods —more than a third are African -American and Hispanic —residents are often widows and widowers living on fixed incomes and maintaining low-key lifestyles. 62 HOMETOWN RETIRED — With three-quarters of all residents over 65 years old, Hometown Retired is one of the oldest segments. These racially mixed seniors tend to live in aging homes —half were built before 1958—and typically get by on social security and modest pensions. Because most never made it beyond high school and spent their working lives at blue-collar jobs, their retirements are extremely modest. 34 ,Q N¢<vror e• yo Community/9 • Household Segments — Brief Descriptions 63 FAMILY THRIFTS — The small -city cousins of inner-city districts, Family Thrifts contain young, ethnically diverse parents who have lots of children and work entry-level service jobs. In these apartment -filled neighborhoods, visitors find the streets jam- packed with babies and toddlers, tricycles and basketball hoops, Daewoos and Hyundais. 64 BEDROCK AMERICA — Bedrock America consists of young, economically challenged families in small, isolated towns located throughout the nation's heartland. With modest educations, sprawling families and blue-collar jobs, many of these residents struggle to make ends meet. One quarter live in mobile homes. One in three has not finished high school. Rich in scenery, Bedrock America is a haven for fishing, hunting, hiking and camping. 65 BIG CITY BLUES — With a population that's half Latino, Big City Blues has the highest concentration of Hispanic Americans in the nation, but it's also the multi -ethnic address for downscale Asian and African -American households occupying older inner- city apartments. Concentrated in a handful of major metros, these young singles and single -parent families face enormous challenges: low incomes, uncertain jobs and modest educations. More than 40% haven't finished high school. 66 LOW-RISE LIVING — The most economically challenged urban segment, Low -Rise • Living is known as a transient world for young, ethnically diverse singles and single parents. Home values are low —about half the national average —and even then, less than a quarter of residents can afford to own real estate. is Buxton utilizes the Clarita? PRIZM®NE segmentation system in this analysis. PRIZM®NE and Clarita? are registered trademarks of Claritas Inc. The PRIZM segment nicknames (e.g., "Blue Blood Estates," Big Sky Families," "Country Squires") are trademarks of Claritas Inc. 35 Btr,ton Demographics Analysis Geography: Balboa Blvd a Main St Newport Beach, CA Date: 9/I6/2008 1 Min 9 Min Population Profile Drive Time Drive Time 2012 Projection 53,526 85,253 2007 Estimate 52,647 82,556 2000 Census 52,169 80,085 1990 Census 50,581 76,412 Population Change M7Mn Drive Time 5% .. _ . ._ ._—. _.. _. _. _. _.. _ _ � 9 Min Drive Time 0% Growth IM2000 '/• Growth 2000.2007 '% Growth 5 Year Proj % *Work Place Population 1 Min Drive Time 9 Min Drive Time Total 62,519 76,789 Household Profile 2012 Projection 25,510 38,031 2007 Estimate 25,284 37,224 2000 Census 25,298 36,763 1990 Census 23,872 34,8S7 5% 0% is Household Change Growdi 1990-2000 % Growth 2000-2007 % Growth 5 Year Proj % 7 Ain Drive Time 9 Mn Drive Time Page: Bwaori Demographics Analysis Geography: Balboa Blvd & Main St Newport Beach, fh Due: 9/26/2008 1 Min 9 Min Population By Race (Current) Drive Time Drive Time White 48,164 12,730 Black 311 555 American Indian 136 299 Asian 2,086 3,291 Pacific Islander 73 156 Other 798 3,581 Two Or More 1,019 1,944 Total Population By Race 52,641 82556 90% • 0 70 60% 50% 40% 30% 20% 10% 0% Population By Race (Current) White Black American Indian Asian Padfic Islander Other Two Or More 7 Mn Drive Time 9 Mn Drive Tare 1 Min 9 Min Population By Hispanic Origin (Current) Drive Time Drive Time Hispanic Origin 2,797 8,089 Non Hispanic Origin 49,850 14,467 0 Burton Demographics Analysis Geography: Balboa Blvd & Main St Newport Beath, G1 Date: 9/26/2008 7 Min 9 Min Population By Age (current) Drive Time Drive Time 0 to 4 years 1,950 3,151 5 to 9 years 2,119 3,988 10 to 14 years 2,338 4,339 15 to 17 years 1,440 2,607 18 to 20 years 1,139 2,067 21 to 24 years 1,790 3,091 25 to 34 years 7,273 11,433 35 to 44 years 8,503 13,215 45 to 49 years 4,129 6,616 50 to S4 years 4,063 6,148 55 to 59 years 4,257 6,218 60 to 64 years 3,S76 5,127 65 to 14 years 4,865 6,889 75 to 84 years 3,688 5,027 •85+ Years 1,517 2.040 Total Population By Age S2,647 82,S56 Average Age 44.S 42.4 Median Age 4S.S 43.3 15% 10% 5% 0% • Population By Age (Current) 7 Mn Drive Time 9 Mn Drive Time Page, 3 Burton Demographics Analysis Geography: Balboa Blvd & Main St Newport Beach, CA Date: 9/26/2008 Households By Income (Current) T Min Drive Time 9 Min Drive Time Under $15,000 1.541 2,314 $15,000 to $24,999 1,216 2,112 $25,000 to $34,999 1,487 2,150 $35,000 to $49.999 2.487 4.008 $50,000 to $74,999 3,875 5.763 $75,000 to $99,999 3,134 4,583 $100,000 to $149,999 4,570 6,601 $150,000 to $249,999 3,520 4,952 $250,000 to $499,999 1,897 2,619 $500,000 + 1.551 2,122 Total Households By Income 25,284 37,224 Average Household Income $137,813 $132,460 Per Capita Income $73,566 $68,992 •Median Household Income $100,417 $96,704 Households By Income (Current) 19,64% 18.24 % 16.94% 15.43 % 14.03% 12.63% 11.22% 9,82 % 8.42% 7.01 % 5,61% 4.21 21.4% 11 7 Mn [Drive Time ® 9 loin Drive Time Page: 4 Burton � 4ftc � Analysis Geography: Balboa Blvd & Main St Newport Beach, CA Demographics Date: 9/26/2008 7 Min 9 Min Housing Units By Occupancy (Current) Drive Time Drive Time Owner - Occupied 45.9% 46.2% Renter - Occupied 40.7% 42.8% Vacant 13.4% 11.1% Owner - Occupied Property Values (Current) Under $20,000 90 160 $20,000 to $39,999 47 107 $40,000 to $59,999 47 93 $60.000 to $79,999 64 75 $80,000 to $99,999 70 81 $100,000 to $149,999 86 93 $150,000 to $199,999 94 123 $200,000 to $299,999 73 97 •$300,000 to $399,999 116 171 $400,000 to $499,999 286 364 $500,000 to $749,999 968 1,589 $750,000 to $999,999 937 053 $1,000,000 + 10,534 14,412 Total Owner - Occupied Property Values 13,412 19,318 Median Property Value 923,938 898,970 Owner - Occupied Property Values (Current) 90.09^i 80.08 % 7 Min Drive Time 70.07 % t� 9 Min Drive Time 10.01 % 0% • 10� 0 0 o°ems 4 41, e Page: 5 /V I t �Ilr. 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