Introduction

As the son of the founder of VIP Records, I am deeply committed to preserving and enhancing the legacy of this iconic location in Long Beach. The acquisition of the 7-Eleven Anchored Strip Center at 1002-1030 E Pacific Coast Highway is a strategic investment that aligns with my vision of cultural preservation and community development. This investment plan outlines the steps and strategies necessary to acquire and manage this property successfully while integrating the rich history of VIP Records into a vibrant future.

Help a Son Honor His Father’s Legacy: Join the Journey to $10 Million

VIP Records: A Cornerstone of Long Beach's Music Scene
By Kelvin Anderson Jr.

Growing up as the son of Kelvin Anderson, born in 1985, my childhood was deeply intertwined with the rhythm and soul of VIP Records. From the age of eight, I was immersed in a world of music and community, witnessing firsthand the impact my father had on the Long Beach music scene and beyond. Here's the story of VIP Records, a beloved music store and cultural landmark, from my perspective.

Property Overview

• Address: 1002-1030 East Pacific Coast Highway, Long Beach, CA 90806
• APN: 7268-025-025
• Purchase Price: $5,950,000
• Gross Leasable Area: 25,045 SF
• Lot Size: 42,091 SF
• Current CAP Rate: 5.18%
• Pro Forma CAP Rate: 6.48%
• Year Built/Renovated: 1962/2017
• Price Per Square Foot: $237.57

Key Highlights

• Strategic Location: The property boasts a signalized hard corner with 260 feet of frontage on Pacific Coast Highway & Martin Luther King Jr. Ave, attracting high visibility and foot traffic.
• Corporate Anchor Tenant: The presence of a corporate 7-Eleven enhances the stability and attractiveness of the strip center.
• High Traffic Count: With nearly 60,000 vehicles per day (VPD) passing by, the location is ideal for retail operations.
• Dense Urban Market: The surrounding area includes 286,401 people within a 3-mile radius and 490,515 people within a 5-mile radius, ensuring a steady customer base.
• Proximity to Key Institutions: Located less than 2 miles from the 710 freeway and walking distance to Polytechnic High School and Long Beach City College, making it a prime spot for retail and community engagement.

Financing Strategy

• Equity Contribution: $2,100,000
• Personal funds: $1,000,000
• Private investors: $1,100,000
• Debt Financing: $3,850,000 (65% LTV)
• Interest Rate: 4.10% (5-year fixed)
• Amortization: 30 years
• Monthly Payment: $18,603

Due Diligence

• Property Inspection: Conduct a thorough inspection to assess the condition of the property and identify any potential issues.
• Market Analysis: Perform a detailed market analysis to understand the local real estate trends and potential for rent increases.
• Tenant Review: Evaluate the existing tenant leases and assess the financial stability and future plans of each tenant.
• Financial Audit: Review all financial statements, tax records, and expenses to ensure accuracy and identify areas for cost optimization.

Acquisition Process

1. Negotiate Purchase Agreement: Finalize the terms and conditions of the purchase agreement with the seller.
2. Secure Financing: Obtain approval for the loan and finalize all necessary documentation.
3. Legal Review: Engage a real estate attorney to review all contracts, leases, and legal documents.
4. Close the Deal: Complete the purchase transaction and transfer ownership.

Post-Acquisition Plan

• Property Management: Hire a professional property management company to handle day-to-day operations, tenant relations, and maintenance.
• Capital Improvements: Allocate a budget for any necessary renovations or improvements to enhance the property’s appeal and value.
• Marketing and Leasing: Develop a marketing strategy to attract new tenants and retain existing ones, focusing on businesses that complement the cultural and community objectives.

Financial Projections

• Current Gross Potential Rent: $418,055
• Pro Forma Gross Potential Rent: $455,793
• Effective Gross Income: $442,492 (Current), $523,436 (Pro Forma)
• Net Operating Income: $308,166 (Current), $385,306 (Pro Forma)
• Cash on Cash Return: 4.04% (Current), 7.72% (Pro Forma)
• Debt Coverage Ratio: 1.38 (Current), 1.73 (Pro Forma)

Risk Management

• Market Risks: Mitigate by diversifying the tenant mix and focusing on long-term leases.
• Financial Risks: Maintain a reserve fund for unexpected expenses and vacancies.
• Operational Risks: Regularly review and optimize property management practices to ensure efficiency and tenant satisfaction.

Exit Strategy

• Long-Term Hold: Aim for steady cash flow and appreciation over a 10-15 year period.
• Refinancing: Consider refinancing after 5 years to take advantage of increased property value and lower interest rates.
• Sale: Evaluate market conditions periodically and sell the property if a substantial profit can be realized.

VIP Records: A Legacy of Music and Community

Foundations: Cletus Anderson and the Birth of VIP Records
Our story begins with my uncle Cletus Anderson, who moved from Mississippi to California in 1967 and opened a small record store in South Central Los Angeles. The store quickly became a hub for music enthusiasts, particularly in genres like R&B, gospel, jazz, reggae, and blues. By the 1970s, VIP Records had opened multiple locations and relocated to larger spaces, setting the stage for future expansions.

New Frontiers: Kelvin Anderson and the Long Beach Store
In 1978, my father, Kelvin Anderson, opened VIP Records in Long Beach, California. The store quickly became a staple in the community, known for its vast selection of new and used records, tapes, and CDs. VIP Records offered an eclectic inventory that spanned genres abroad. It wasn't long before locals and visitors from surrounding areas flocked to the store, drawn by its welcoming atmosphere and extensive collection.

Community Hub: Hosting Performances and Supporting Local Talent
VIP Records wasn't just a store; it was a cultural hub. We hosted in-store performances, attracting local talent and providing a platform for musicians to showcase their skills. This made VIP Records a vibrant center for music lovers. The store's reputation for rare and hard-to-find records also grew, with music enthusiasts traveling from afar to scour the shelves for elusive albums or singles. The knowledgeable staff, always eager to help, created a welcoming environment where customers could discover new music and deepen their appreciation for various genres.

The Recording Studio: A Safe Haven for Aspiring Artists
By the 1990s, my father had transformed a small back room into a recording studio. This studio became a haven for local youth, providing a safe space away from gangs and a platform to nurture their musical talents. It was here that iconic artists like Snoop Dogg, Warren G, and Nate Dogg recorded their first demos, giving rise to the legendary group 213. VIP Records played a crucial role in the rise of West Coast hip-hop, becoming synonymous with the genre and helping to launch the careers of many influential artists.

The Iconic Sign: A Beacon of West Coast Hip-Hop
For four decades, the VIP sign stood proudly atop our store, a symbol of the West Coast hip-hop movement. This sign was more than just a landmark; it was a beacon that attracted music lovers from around the globe. The store and its sign were featured in music videos, most notably in Snoop Dogg's "Who Am I (What's My Name)?" In January 2018, the sign was removed and placed in storage, recognized by the Long Beach City Council as a historic landmark, one of only two Black-owned landmarks in the city's history.

Gang Culture and the Struggles of Long Beach
During the 1970s to 1990s, Long Beach was marked by significant gang activity, with various gangs vying for control of the city's streets. This period saw a surge in gang-related violence, which had a profound impact on the community. Despite these challenges, VIP Records provided a safe space for many local youths, helping them escape the harsh realities of gang life through music and creativity. Gangsta rap, emerging in the late 1980s, became a platform for expressing the struggles and experiences of living in such environments, further cementing the cultural significance of VIP Records in the community.

Reviving the Legacy: The New VIP Experience
Despite the challenges, we are determined to keep the VIP legacy alive. We are looking to secure a new home for the sign, which will become The New VIP Experience. This center will provide workspaces, a tech lab, a music studio, a radio station, a green screen room, and an outdoor event space. It will serve as a safe space for entrepreneurs in tech, music, and media industries, supported by a 24-hour radio station, retail space, and music studio.

Our mission is to create economic opportunities by fostering careers in technology, music, broadcasting, writing, and the nonprofit sector. We will offer a range of resources, including a tech room with computers, printers, and copiers; a 24-hour radio station; a music recording studio; a conference room; a green screen room; a workspace with couches and tables; and a resource office. The center will also feature murals and digital experiences that reflect the history of VIP Records.

The historical VIP sign, from Snoop Dogg's first video, will anchor the building, symbolizing the era when young artists launched their careers in the 90s. We will also assist entrepreneurs with financing through programs available to those in need.

Community Engagement and Future Goals
Community engagement is at the heart of our mission. We plan to host ongoing music and small business contests to foster community involvement. Our goal is to make VIP the best place to CREATE by providing opportunities for small businesses to grow and thrive. We will measure our success by the number of jobs created, businesses launched, and the type of community engagement achieved.

In partnership with the local musical community, we recently unveiled a new recording studio, designed with the help of artist Giveon. This studio will provide local artists and kids a space to hone their craft, with 100 hours of studio time gifted to local musicians. Giveon's involvement highlights the importance of giving back to the community and supporting the next generation of artists.

As we work to secure a permanent site for the historic VIP sign, we remain committed to preserving my father's legacy and the cultural significance of VIP Records. Through our new business incubator and multimedia center, we aim to lift communities out of poverty, provide educational and creative resources, and continue to inspire and empower the next generation of artists and entrepreneurs.

A Lasting Legacy
Although VIP Records is no longer in operation today, its legacy lives on in the hearts of those who frequented the store during its heyday. Many people still reminisce about the good old days of browsing through the racks at VIP, discovering new music, and making lasting connections with fellow music enthusiasts.

Join Us in This Heartfelt Mission
Let’s honor my father’s legacy and make history together, one $10 contribution at a time.

Donate Today and Be a Part of Something Extraordinary
Together, we can reach the $10 million goal and keep the flame of a remarkable legacy burning bright.

Conclusion

The acquisition of the 7-Eleven Anchored Strip Center is not only a sound financial investment but also a unique opportunity to honor and revitalize the legacy of VIP Records. By merging commercial success with cultural heritage, we aim to create a vibrant community hub that will serve as a beacon of hope and opportunity for future generations.

For further discussions and detailed plans, please contact me at the earliest convenience.