offering memorandum.

offering memorandum.
Ford
San Leandro, CA |
San Francisco Bay Area
$25,869,000
5.79% CAP Rate
••Long Term Net Lease
••
•Top• Performing Ford
••Dealership with Strong Year
Wholly Owned Subsidiary of
Ford Motor Co.
Annual CPI Rental Increases
over Year Sales
Traffic Hard Corner
••High
Location in Bay Area
••
Dense Infill
••Irreplaceable
Location
Access to
••Convenient
Interstate 880 – 201,000 AADT
Regional Demographics
••Strong
within 5 Mile Radius
••
••
Marina Blvd. & Teagarden St. –
Collective 43,063 AADT
Population of 336,939
Average Household Income of
$75,845
www.maffiateam.com
Disclaimer
Newmark Cornish & Carey (“Broker”) has been retained on an exclusive basis to
market the property described herein (“Property”). Broker has been authorized
by the Seller of the Property (“Seller”) to prepare and distribute the enclosed
information (“Material”) for the purpose of soliciting offers to purchase from
interested parties. More detailed financial, title and tenant lease information may
be made available upon request following the mutual execution of a letter of intent
or contract to purchase between the Seller and a prospective purchaser. You are
invited to review this opportunity and make an offer to purchase based upon your
analysis. If your offer results in the Seller choosing to open negotiations with you,
you will be asked to provide financial references. The eventual purchaser will be
chosen based upon an assessment of price, terms, ability to close the transaction
and such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest
from qualified investors for the acquisition of the Property. The Material is not to be
copied and/or used for any other purpose or made available to any other person
without the express written consent of Broker or Seller. The Material does not
purport to be all-inclusive or to contain all of the information that a prospective
buyer may require. The information contained in the Material has been obtained from
the Seller and other sources and has not been verified by the Seller or its affiliates.
The pro forma is delivered only as an accommodation and neither the Seller, Broker,
nor any of their respective affiliates, agents, representatives, employees, parents,
subsidiaries, members, managers, partners, shareholders, directors, or officers,
makes any representation or warranty regarding such pro forma. Purchaser must
make its own investigation of the Property and any existing or available financing,
and must independently confirm the accuracy of the projections contained in the
pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market.
Seller has no obligation, express or implied, to accept any offer. Further, Seller has
no obligation to sell the Property unless and until the Seller executes and delivers
a signed agreement of purchase and sale on terms acceptable to the Seller, in
its sole discretion. By submitting an offer, a purchaser will be deemed to have
acknowledged the foregoing and agreed to release Seller and Broker from any
liability with respect thereto.
Table of Contents
Property Information
1
Tenant Information
2
Site Plan
3
Aerials
4
About the Area
8
Demographics
10
Property walk-throughs are to be conducted by appointment only. Contact Broker
for additional information.
Michael Maffia
Executive Vice President
415.445.5144
[email protected]
CA RE License #01340853
Forrest S Gherlone
Senior Managing Director
925.974.0237
[email protected]
CA RE License #01376723
Joe Fabian
Executive Vice President
510.300.0211
[email protected]
CA RE License #01013902
Mike Zylstra
Senior Managing Director
925.974.0106
[email protected]
CA RE License #01310041
Nick Carey, LEED AP
Managing Director
949.608.2064
[email protected]
CA RE License #01456650
Property Information
Location
Annual Rent
The property is located at 1111 Marina Boulevard in San Leandro,
California.
Year
Lot Size
Annual Rent*
Return
1
$1,497,624
5.79%
2
$1,535,065
5.93%
3
$1,573,441
6.08%
4
$1,612,777
6.23%
Improvements
5
$1,653,097
6.39%
Construction completed in 2001 of an approximately 54,668 square
foot auto dealership building with a service facility for San Leandro
Ford and Lincoln. There is ample parking on site.
6
$1,694,424
6.55%
7
$1,736,785
6.71%
8
$1,780,204
6.88%
Lease
9
$1,824,709
7.05%
10
$1,870,327
7.23%
11
$1,917,085
7.41%
12
$1,965,012
7.60%
Approximately 5.77 acres, or 251,341 square feet.
Leased to Ford Leasing Development Company, and subleased to
Nicholas K. Corporation d.b.a. San Leandro Ford and Lincoln, for 20
years from February 2008 to December 2027 at a current net annual
rent of $1,497,624. The rent increases each April by the increase in the
CPI, with any year increase not to exceed 4% over the preceding lease
year. The lease is net with the tenant responsible for taxes, insurance
and all maintenance, except for structural improvements.
*Assuming annual 2.5% increases in CPI.
Price: $25,869,000 (5.79% Return)
Financing
The property will be delivered free and clear of permanent
financing.
Right of First Refusal
Ford Leasing Development Company shall have the right of first
refusal to purchase the property on the same terms and conditions
as those of any bona fide offer received by the landlord after
receiving notice of such offer.
1
Tenant Information
FORD LEASING DEVELOPMENT COMPANY is a wholly owned subsidiary of Ford Motor Company, one of the world’s
largest makers of cars and trucks. Its vehicles brands include Ford and Lincoln. Ford Motor Company owns a 2.1% stakes in
Mazda, an 8% stake in Aston Martin, and a 49% stake in Jiangling of China. Among its biggest successes are the redesigned
Ford Mustang and F-Series pickup. Ford’s finance subsidiary Ford Motor Credit is one of the nation’s leading auto finance
companies. Since the industry crisis that occurred in 2008, Ford Credit has been the only financial arm of Detroit’s “Big
Three” still owned by its parent automaker. It is the second largest U.S.-based automaker and the fifth-largest in the world. It is ranked #8 in the
Fortune 500. During the financial crisis the company was near bankruptcy, but remained resilient and has since returned to profitability.
For the quarter ended December 31 2015, Ford Motor Company reported revenues of $40.25 billion and net income of $2.66 billion with total
stockholder equity of $28.64 billion. Ford had a breakthrough year in 2015 with net income quintupling to $7.4 billion, as sales of its high-margin
pickups and SUVs surged for the U.S. auto maker. Besides North Amierca, the European and Asia-Pacific regions also attributed largely to the
company’s bottom line with significant increase in sales, further exemplifying the company’s strength in the international markets.
2
Site Plan
MARINA BOULEVARD
ARDEN STREET
G
A
TE
SIGN
54,668 SF
3
Aerial | Northeast View
00
,5
38
(
lvd
B
a
)
DT
A
A
rin
Ma
Teagarden St
Aerial | Southwest View
MARINA SQUARE
Fairway
Business Center
/ (201,000 AADT)
Pacific Sports
Complex & Burrell Field
Teagarden St
Marina Blvd (38,500 AADT)
SAN LEANDRO PLAZA
Aerial | Top-Down View
Bancroft
Middle School
John Muir
Middle School
San Leandro
High School
d
a Blv
Marin
00
(38,5
)
AADT
MARINA SQUARE
San Leandro
Hospital
Fairway
Business Center
0
0
1,0
20
/(
)
DT
AA
Concord
Aerial | Distant View
Recent & Future Area
Development
Berkeley
Walnut
Creek
Oakland
San Francisco
Daly City
San Leandro
South San
Francisco
Hayward
San Mateo
Union
City
Half Moon
Bay
Fremont
Redwood
City
Palo Alto
Milpitas
Mountain
View
Santa
Clara
San Jose
A testament of the area’s strength can
be seen through the 2014 completion
of the 216-bed Kaiser Permanente San
Leandro Hospital which spans over
435,000 square feet. In the future, Kaiser
Permanente may expand the hospital
and construct new medical offices.
Build-out could include expansion of the
Kaiser Medical Center by an additional
375,000 square feet, including a 175,000
square feet, 120-bed expansion of the
hospital, the construction of two 100,000
square foot medical office buildings,
and the construction of additional
structured parking areas. The northern
approximately 28-acre parcel site
adjacent to Kaiser Permanent is planned
for a 387,000 square foot mixed used
project. The project will include over
380,000 square feet of retail uses and
either a 250 unit apartment complex or
a hotel of up to 210 rooms. Depending
upon the demand for retail services in the
area, this mixed-use retail development is
expected to be completed by 2018.
BRIDGE Corp. is developing a $58 million
project along San Leandro Boulevard
opposite the downtown BART station
which will consist of 115 apartment units
as part of the first phase. Phase I is
expected for completion for the first half
of 2016. The estimated $30 million Phase
II of the development will bring about 85
units with construction slated to begin
in either 2016 or 2017. Another major
development includes the Sean Leandro
Tech Campus, where a 500,000 square
foot Class A office campus will break
ground directly adjacent to the downtown
San Leandro Bart Station. The estimated
$200 million project will be completed in
three phases over the next few years.
7
About the Area
General Overview
San Leandro is located in the San Francisco
region’s East Bay area and in Alameda
County. The population was estimated to
be 87,965 as of 2013. The City is situated
immediately south of Oakland and west of
Hayward on the shore of the San Francisco
Bay. San Leandro is an ideal location for
retail, office and industrial properties
alike due to its central Bay Area location,
proximity to Oakland International Airport
and location between two Bay Bridges (the
Bay Bridge and the Hayward – San Mateo
Bridge). Additionally, the city is advantaged
by a strong transportation infrastructure,
as it is served by many prominent highways
such as Interstates 880, 580 and 238, along
with the presence of the extensive public
transportation provided by Bay Area Rapid
Transit BART District. With a convenient
central location, ease of accessibility to
major nearby Bay Area cities and some
of the lowest vacancy rates within the
East Bay, San Leandro is home to many
corporate businesses such as JanSport, The
North Face, Ghirardelli, Otis Spunkmeyer,
and a Coca-Cola plant. The city is also home
to five major shopping destinations: the
Bayfair Center, West Gate San Leandro,
Marina Square, Greenhouse Shopping
Center, and Pelton Plaza.
About the Area
Site Information
The property is located centrally in the San Leandro Marina
Auto Mall at the Marina Boulevard interchange just off of
Interstate 880 in a densely populated suburb of the San
Francisco Bay Area. Originally developed in 1995 for four new
car and two used car dealerships, the Marina Auto Mall has
since been expanded to include a total of 12 auto dealerships.
This is an ideal infill location advantaged by its accessibility
to the heavily travelled Interstate 880 (201,000 AADT) and
enjoys excellent visibility as it is situated at the corner of the
signalized intersection of Marina Boulevard (38,500 AADT)
and Teagarden Street (4,563 AADT). Additionally, there
is a population of 336,939 within a five mile radius, further
attributing to the growth of the local economy. The dense
population has fueled the viability of prominent retail centers
in the immediate area, such as Marina Square which occupies
the southwest quadrant of the intersection. Marina Square is a
167,254 square foot shopping center anchored by Nordstrom
Rack, Marshalls, and the Nike Clearance Store. Less than one
mile northeast of the property is San Leandro Plaza, which
is anchored by Safeway and features national credit tenants
such as CVS Pharmacy, Starbucks, McDonald’s, Subway, and
RadioShack, among others.
Oakland International Airport is approximately four miles
northwest of the subject property. It is one of three
international airports in the San Francisco Bay Area and acts
as a focus city for Southwest Airlines and Allegiant Air. As of
August 2015, Southwest has 120 daily departures on peaktravel days from Oakland International Airport. In total, more
than 10.9 million people traveled through Oakland International
Airport from October 2014 through September 2015.
Demographics
1111 Marina Blvd, San Leandro, CA 94577
1 mile
3 miles
5 miles
2010 Total Population
17,833
154,180
325,913
2015 Total Population
18,345
158,724
339,939
2020 Total Population
19,147
166,193
354,093
2015-2020 Annual Rate
0.86%
0.92%
1.00%
2015
$71,476
$73,122
$75,845
2020
$81,659
$82,815
$85,543
$413,711
$413,416
$442,116
$489,279
$502,287
$523,413
Population Summary
Average Household Income
Median Home Value
2015
2020
Major Employers in San Leandro, CA
# of Employees
San Leandro Unified School District
1,095
Permanente Medical Group Inc.
727
City of San Leandro
509
Ghirardelli Chocolate, Co.
426
OSI Soft, LLC
333
Costco Wholesale
291
Paramedics Plus LLC
288
BCI Coca-Cola Bottling
285
Wal-Mart
267
Target
255
10
Michael Maffia
Executive Vice President
415.445.5144
[email protected]
CA RE License #01340853
Forrest S Gherlone
Senior Managing Director
925.974.0237
[email protected]
CA RE License #01376723
Joe Fabian
Executive Vice President
510.300.0211
[email protected]
CA RE License #01013902
Mike Zylstra
Senior Managing Director
925.974.0106
[email protected]
CA RE License #01310041
Nick Carey, LEED AP
Managing Director
949.608.2064
[email protected]
CA RE License #01456650