springfield village - Gallelli Real Estate

springfield village - Gallelli Real Estate

SPRINGFIELD VILLAGE
1505 & 1515 Springfield Drive | Chico, CA 95928
Sale Price: $11,000,000
Price Per Square Foot: $97.97
Square Feet: ±112,277
Actual Cap Rate: 5.73%
Occupancy: 90.00%
Immediate Value Add / Upside Opportunity
• 2006/2007 Construction priced at less than $100 per square foot
• Year 2 stabilized yield of 7.21%
• 100% National tenants - Kohl’s, David’s Bridal and Kirkland’s
• Extremely low retail market vacancy at 3.1%
• Value add investment opportunity in the dominant retail area of Chico
• Highway 99 frontage and adjacent to 528,397 SF Chico Mall
• 90.00% physical occupancy / 79.85% financial occupancy
• Home to Chico State University and Sierra Nevada Brewing
• Immediate opportunity for additional rental income
GARY GALLELLI
Partner
Managing Director
L #01099383
[email protected]
MICKEY TURPEN
Senior Vice President
Investment Group
L #01340787
[email protected]
GALLELLI REAL ESTATE
3005 Douglas Blvd #200
Roseville, CA 95661
P 916 784 2700
www.GallelliRE.com
SPRINGFIELD VILLAGE
1505 & 1515 Springfield Drive | Chico, CA 95928
THE PROPERTY
INVESTMENT SUMMARY
The property is a quality constructed retail center, anchored
PRICE
by Kohl’s who ground leases their ±6.79 acre parcel. The
SQUARE FEET
112,277
PHYSICAL OCCUPANCY
90.00%
FINANCIAL OCCUPANCY
79.85%
junior anchor building directly adjacent to Kohl’s houses
Kirklands and David’s Bridal. Chico Mall is directly south of
Springfield Village.
$11,000,000
PRICE PER SQUARE FOOT
$97.97
ACTUAL CAP RATE
5.73%
YEAR 2 YIELD
7.21%
vacant ±5.81 acre parcel. An application was been filed with
CASH ON CASH RETURN YEAR 2
8.78%
the City of Chico to construct a 131 room Hampton Inn.
ESTIMATED IN PLACE NOI
Springfield Village is located at 1505 and 1515 Springfield
Drive and is in the northeast quadrant of Highway 99 and
East 20th Street. The property has Highway 99 frontage
visibility. Between Springfield Village and the Chico Mall is a
YEAR BUILT
$629,976
2006/2007
SOLID REAL ESTATE FUNDAMENTALS
•• 2005/2006 construction with long term national tenancy priced below $100 PSF.
•• Priced at approximately one-third of replacement cost.
•• Kohl’s parcel is ground leased through January 31, 2027.
•• Kohl’s pays all expenses for their parcel.
•• Priced well below replacement costs.
•• Highway 99 frontage and visibility.
•• Located within the main retail corridor of Chico adjacent to the 528,397 square foot Chico Mall.
•• Modern architecture and conventional site plan will sustain leasing momentum over time.
•• Attractive non-recourse debt is possible at a quoted rate of 70% loan to value, 4.25% fixed rate, amortized over 25
years, due in 7 years .
•• Chico is the major employment center, medical, and retail hub for Butte County and the surrounding Northern
California region.
LOCATION HIGHLIGHTS
MARKET HIGHLIGHTS
•• Springfield Village is located adjacent to the 528,397 square foot Chico Mall.
•• The Chico retail market consists of nearly 7.4 million square feet of space and is the
•• Springfield Village is accessible through Chico Mall and Springfield Drive
largest retail trade area north of the Sacramento region in California.
•• Located in the northeast quadrant of the Highway 99 and East 20th Street
•• Extremely low vacancy - retail vacancy peaked at 7.0% in the first quarter of 2012,
but has since declined to the current rate of 3.1%.
interchange.
•• Located less than a half-mile from the Highway 99 and East 20th Stree
•• Since the first quarter of 2012, the Chico retail area has recorded nearly 310,000
Medford
interchange, one of the primary interchanges in the City of Chico.
square feet of positive net absorption.
Klamath Falls household income, desirable
•• Market drivers include an above-regional-average
location and impressive traffic counts.
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•• Springfield Village is part of nearly ±5,000,000 square feet of retail space located with-
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•• Excellent traffic counts with +35,300
in a two-mile radius along the Highway 99 corridor, which includes the Chico Mall,
(ADT) at the nearby
the largest retail center in the City.
•• The Chico retail market is supported by a dense population base in an established
intersection of Forest Avenue and East 20th Street. The Highway 99 and East
Alturas
20th Street interchange sees
Weed121,000 cars per day. The high traffic counts
Mt Shasta
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enhance
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market area. The dense population base and above-average household income has
property’s high retail profile.
made Chico the most desirable retail submarket in Butte County and the
•• Strong income/dense population demographics.
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SPRINGFIELD VILLAGE
1505 & 1515 Springfield Drive | Chico, CA 95928
C AL I
FORNIA
99
FUTURE SITE FOR
131 ROOM HAMPTON INN
NOT A PART
GARY GALLELLI
Partner
Managing Director
L #01099383
[email protected]
MICKEY TURPEN
Senior Vice President
Investment Group
L #01340787
[email protected]
GALLELLI REAL ESTATE
3005 Douglas Blvd #200
Roseville, CA 95661
P 916 784 2700
www.GallelliRE.com