Rocklin, California - Palmer Capital Inc.

Rocklin, California
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Aerials
80
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Stanford R
anch Road
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Pleasant Grove Boule
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Zoned Jurisdictional
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Aerials 5
Legend
Competitive Set
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Rosev
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rkway
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Blue
Oaks
Boule
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vard
Zoned Jurisdictional
Wet Land
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Zoned Jurisdictional
Wet Land
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29.
The Ridge at Creekside -Expo
Design Center, Macys Home
Store, REI – Evergreen Company
Creekside Town Center - Best
Buy, Bed Bath & Beyond –
Donahue Schriber/Evergreen Co
Highland Reserve Marketplace
- Kohl’s, PetSmart, Beverages &
More – Donahue Schriber
Fairway Commons I, II - Circuit
City, Guitar Center, Joann’s
Fabric – Kobra Properties
Blue Oaks Marketplace Old Town Furniture, Green
Tangerines, Fitness 19 – Lakha
Investments
Fairway Creek - Basset Furniture,
Golf USA, Goodwill – Citadel
Equities
Hotel/Retail Development –
Glimcher Venture South West
Rocklin 65 Corporate Park –
Seaberg Construction
Highland Plaza – Nugget
Anchored – Citadel Equities
Rocklin Academy Elementary
School
Commercial Land (13 AC) – City
of Roseville
Commercial Land (9 AC) – Trilogy
Investments
Commercial Land (5.5 AC) –
Collet Construction
Stanford Ranch Village - Bel
Air Supermarket, Blockbuster –
Regency Centers
Adventure Christian Church
Stanford Ranch Crossing Staples, Sports Authority – DRA
Advisors/Kimco Reality
Costco – Costco Corporation
Home Depot – Home Depot USA
Five Star Plaza - American
Furniture, Bellach’s, The Room
Source – GDA Real Estate
Roseville Galleria - Macy’s,
Sears, Nordstrom, Crate & Barrel
– Westfield America
The Fountains at Roseville Whole Foods, Z Gallerie – InterCal Real Estate
Highland Pointe – Mourier Land
Investment
Shea Center - Future Office
Development – Shea Properties
Projected Office/Industrial Project
(46.5 AC) – Richland Lindero
Limited
Fairway Commons - Sam’s Club –
Wal-Mart Corporation
Fairway Commons –
Wal-Mart Supercenter –
Wal-Mart Corporation
Fairway Commons – Target –
Target Corporation
Roseville Crossing - Sleep Train,
Chili’s, Ethan Allen – Sywest
Development
Roseville Community School
Aerials
6
Legend
Competitive Set
1.
Blue Oaks Marketplace – Lakha
Investments
2.
Rocklin 65 Corporate Center –
80
Office Condos Built b Seaberg
Construction
3.
Land – 29.5 Acres – City of
20
Rocklin – Designated Open Space
4.
16
Land – 36.1 Acres – Stanford
21
Ranch I LLC – Projected Office/
Industrial Development
5.
22
Parkside Industrial Center –
Multiple Owner/Users
6.
Wa
sh
10680 Industrial – Hertz Rental
ing
Equipment
7.
10576 Industrial Avenue –
MacMillan Partners
8.
ton
Bo
ule
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var
d
Projected Office/Industrial
Development – 6 Acres MacMillan Partners
9.
23
Roseville Commerce Center –
MacMillan Partners
10.
65
Projected Office/Industrial
Development – 26.44 Acres –
Mark IV Capital
11. 10500 Industrial Avenue – HB
Fuller Company
24
12. 10000-10010 Allantown Drive –
Zoned Jurisdictional
Wet Land
Amir Development Company
13. Office/Industrial Development –
44.1 Acres – Harsch Investment
Blue
Properties
Oaks
vard
Boule
14. Roseville Parkway Industrial Park
– Multiple Owner/Users
15. University Park Development
– Office/Industrial – 59.8 Acres –
MacMillan Partners
16. NEC Electronics – NEC
Electronics USA
17. HP Campus – 490.8 Acres Hewlett Packard Company
18. Save-Mart Distribution Center –
Save-Mart Company
19. Woodcreek Golf Course
20. Pleasant Grove Self-Storage
21. SureWest Communications –
22.3 Acres
22. SureWest Communications –
SureWest Communications
23. Richland Lindero Limited – 46.5
Acres – Development Office/
Industrial
24. Roseville Crossing – Sywest
Development
25. Staybridge Suites – Holiday Inn
Concept
26. Land – 13.1 Acres – Mobile
Capital – Designated Open Space
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65
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Zoned Jurisdictional
Wet Land
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Zoned
Jurisdictional
Wet Land
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Market Analysis
Aerials
“Vision 2015”
The majority of growth and planned future developments are within close proximity of Blue Oaks Town Center. Currently, the area’s available land is
planned for office, industrial, and residential projects that are expected to add 22,700 homes and 60,000 residents. The aerial on this page demonstrates
a few of the highlighted projects in the area estimated for completion by 2015.
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Zoned Jurisdictional
Wet Land
1) Highland Reserve South: Richland Communities is planning the largest office park in the submarket at 1.2 million square feet. Highland Reserve South is comprised of two six-story office
buildings, a mix of two-four story office buildings, and a small retail component.
2) Blue Oaks Commerce Center: Planned 539,000 square feet of flex/office and light industrial buildings to be developed by Harsch Investments.
3) University Park: Planned 507,400-square-foot office park with a light industrial component and restaurants. It is expected to be Roseville’s first office campus and is to be developed by
MacMillan Partners Inc.
4) Surewest Expansion: Owned by Surewest, it is zoned for general industrial use and is projected to be their expansion building.
5) California State University Sacramento: This 490 acre site currently owned by Hewlett-Packard is the proposed location of the CSUS South Placer satellite campus. While progression for
this campus is currently on hold, discussions persist regarding the land to accommodate more than 2,000 homes.
6) Sierra Vista Master Planned Development: 2,160-acres owned by several prominent developers, including Mourier Land Investment Corp., Richland Planned Communities, KT Development
Corp. and Westpark Associates. The group wants to build 10,300 homes.
7) West Park Master Planned Development: With 1,000 homes already completed, the development is owned by multiple home builders including Centex, Pulte, and Lennar, with an additional
5,400 housing units proposed.
8) Placer Ranch Master Planned Development: 2,200-acre property owned by Eli Broad located at the boundaries of Roseville, Rocklin and Lincoln. It will include industrial, office and
retail uses to accommodate more than 25,000 employees at full built-out. Also proposed is a four-year Drexel University campus on 600 acres to include undergraduate education, residence halls,
and athletic fields
Market Analysis
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Zoned Jurisdictional
Wet Land
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9) Creekview Master Planned development: 570-acre plot with longstanding property owners that are developing plans for 3,000 homes.
10) Foothills Commerce Center: Mark IV Capital is developing an 84-acre office and industrial park in conjunction with Stanford Ranch. The first 200,000 square feet is complete with
additional office and light manufacturing currently proposed.
11) Whitney Ranch: This master-planned residential development is located two miles north of Blue Oaks Town Center, which is the closest major shopping center to the development. This
project had 600 homes built in 2007. By 2015, an additional 4,000 housing units are expected to deliver from national builders including Standard Pacific, Centex, Shea, and William Lyons.
12) Thunder Valley Casino Expansion: Projected completion by 2011, the expansion is expecting a 23-story 5-star hotel tower (654 rooms & two 30,000 SF ballrooms), casino floor
expansion, 3,000 seat performing arts theater, and a 5,000 car parking garage.
13) H. B. Fuller Company Expansion: This NYSE traded company owns the 22 acres of land and the 69,000 square foot building. The available land provides room for expansion as this
global leader in adhesives continues to grow.
14) Roseville Commerce Center: Mac Millan owns the Roseville Commerce Center and has proposed to develop Phase Two, which will add four industrial warehouse buildings totaling
90,000 square feet.
15) Stanford Ranch I LLC: Projected office/industrial development – This partnership has developed a significant amount of the light industrial buildings in the submarket.
10
Market Analysis
Excellent Market Dynamics
As a result, the most recently tracked month of home
The timing of the Blue Oaks Town Center offering is
sales in the cities of Rocklin, Roseville and Lincoln
excellent with respect to the Rocklin/Roseville retail market
(South Placer County) experienced an average
cycle. The following are affirmative signs that the retail
increase in transaction volume of nearly 50%, year
market is moving foward.
over year.
Zip Code
Home
Sales
Year Over Year %
Change in Sales
Volumes
August
Median
Price
Lincoln
95648
88
72.5%
$310,000
Rocklin
95677
40
66.7%
$303,000
median home price, current interest rates, and annual
Rocklin
95765
38
40.7%
$321,500
household incomes, nearly 70% of residents can
Roseville
95661
36
38.5%
$357,500
afford a home. This compares to a low of only 38%
Roseville
95678
60
36.4%
$263,750
Roseville
95747
97
34.7%
$349,000
1. Increasingly Affordable Housing – The Sacramento
region is experiencing housing affordability not seen
since 2003.
in 2006.
When taking into consideration the
City
Furthermore, the projected new home forclosures in
the nation for 2009 are expected to be at lower levels
than in 2007. The below graph shows the amount of
new home forclosures per year since 2006.
Market Analysis 11
2. Continued Population Increases – Rocklin, Roseville
3. Daytime
Employment/Business
Expansion
and
and Lincoln are widely considered some of the nicest
Relocation – The office submarket has experienced
cities to reside in the region. The three cities are
a significant expansion in recent years, adding nearly
projected to have a population growth nearly five
two million square feet of new space, representing an
times the national average, providing additional
increase of 70% of new office space since 2003. The
consumers to Blue Oaks Town Center. The three cities
current inventory of available space within a three
are projected to add nearly 47,000 new residents
mile radius provides an opportunity for an estimated
during the next five years.
3,300 new jobs.
Recently, tenants such as Unify and Stifel Nicolaus
relocated from other submarkets to occupy 18,000 and
9,000 square feet of office space, respectively. Within
the past 180 days, there has been nearly 100,000 SF of
office leases signed within a three-mile radius of the
subject property. Below are a few of the highlighted
new leases:
Tenant Activity Within the Past 180 Days
Verifone, Inc.
40,000 SF
TRI Property Mgmt.
6,053 SF
Always Best Care
4,664 SF
York Claims Service, Inc.
3,954 SF
Sheppard & Assc.
2,197 SF
Fundit
1,640 SF
12
Market Analysis
4. Value Oriented Tenancy – Blue Oaks Town Center is
5. Significant Purchasing Power – As a result of the
perfectly positioned in the submarket as it relates to the
region’s high quality of life, increasing daytime
current economic cycle. With value oriented tenancy
employment and excellent housing options, Blue
including, Stein Mart, and Dollar Tree, Blue Oaks Town
Oaks Town Center provides a significantly higher total
Center will benefit from shoppers looking to extend the
wealth when compared to other new power centers in
value of their dollar.
New ownership could consider
the Sacramento Region. When multiplying the number
a marketing campaign including discount mailers and
of households by the average household income of
promotional events to capitalize on the current cycle.
$106,000 within a three mile radius, the total wealth is
over $3.4 billion.
Due to the projected population growth retail
purchasing power is projected to increase by over
$330 million by 2012 and will continue to increase the
demand for retail in the area.
Radius
(Miles)
HH Increase
(2012)
HH Income
(2012)
Retail
Purchasing
Growth
1
495
$110,000
$16 M
3
8,860
$124,000
$330 M
5
12,785
$110,000
$420 M
Market Analysis 13
Coveted Retail Destination
Ingress/Egress – Blue Oaks Town Center is complimented
Blue Oaks Town Center is located at a high profile corner
by six access points, three of which are signalized, allowing
which enables the shopping center to service both a strong
easy access for customers.
employment base, as well as the desirable demographic
profile in the surrounding neighborhoods.
Visibility – The current configuration of Blue Oaks Town
Center helps maximize visibility, as commuters and tourists
Retail Frontage/Traffic Counts – Blue Oaks Town
can easily see the anchor spaces and most shop spaces
Center is strategically located along Highway 65 with
from Highway 65, and Blue Oaks and Lonetree Boulevards.
approximately 2,000 feet of frontage and visibility to
This visibility will continue to be unimpeded as there will
approximately 182,000 cars per day.
be no additional development between Blue Oaks Town
Along with the
daytime employment and significant trade area population,
Center and Highway 65.
Blue Oaks Town Center benefits from being only five
minutes from Interstate 80, which provides regional access
to Sacramento, with over 300,000 cars traveling daily.
160,000 ADT
65
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aks
Bou
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14
Market Analysis
New Regional Retail Concepts
Sportsman’s Warehouse – Sportsman’s Warehouse is
The quality location and trade area of Blue Oaks Town
a destination retailer offering a comprehensive range of
Center has attracted a number of tenants to enter the
outerwear, footwear and outdoor equipment, including
Sacramento market and/or State of California for the first
fishing,
time. A few examples are:
Warehouse draws from over 30 miles and chose Blue Oaks
RC Willey – RC Willey (NAP) is a home furnishings,
electronics and appliance company owned by Berkshire
Hathaway, with other locations in Utah, Idaho and Nevada.
RC Willey chose Blue Oaks Town Center as its first location
in California. Occupying a 162,000 square foot store, RC
Willey consistently performs at a level that places the Blue
Oaks Town Center location in one of its top three stores
hunting
and
camping
gear.
Sportsman’s
Town Center as its first location in California.
Of its 66
stores nationwide, this location is a top 10 performer with
sales approximately $20 million or over $350 per square
foot.
Sportsman’s Warehouse reportedly has a weekly
foot traffic count of approximately 20,000.
The store is
perfectly located in the foothills of the Sierra Nevada, near
many hunters, outdoorsman, and camping enthusiasts.
nationally, with 2008 total gross sales projected to be $60
million or nearly $400 per square foot.
Demonstrating
their commitment to this site, RC Willey has invested over
$30 million in the land and building and has one of their
primary distribution facilities less than a mile away from
Blue Oaks Town Center across Highway 65.
Stein Mart – Stein Mart operates nearly 270 stores across
the United States and selected Blue Oaks Town Center as
its first store in the Sacramento region. Stein Mart is a
value oriented tenant and is traded on Nasdaq under the
ticker SMRT.
Market Analysis 15
Purchasing Power Comparison
Blue Oaks Town Center Total Wealth = $3.4B
Sacramento Gateway Total Wealth = $2.7B
Folsom Gateway Total Wealth = $2.0B
Elk Grove Commons Total Wealth = $2.9B
3-Mile Radius
Power Center
Blue Oaks Town Center
City
Rocklin
Households
32,330
Average HH
Income
Total Wealth
$106,000
$3,426,980,000
Elk Grove Commons
Elk Grove
30,920
$95,000
$2,937,400,000
Sacramento Gateway
Sacramento
38,460
$71,200
$2,738,352,000
Folsom Gateway
Folsom
17,550
$116,800
$2,049,840,000
Market Analysis
16
Regional Access
Day Time Employment
Highway 65 – Starting at the intersection of Interstate
The Rocklin/Roseville submarket benefits from being
80 in Roseville, Highway 65 is the primary thoroughfare
surrounded by one of the top office submarkets in the
to connect South Placer County to the Lincoln/Yuba City/
Sacramento region. The submarket has approximately 12
Marysville region.
million square feet of office space and it is the third largest
The Blue Oaks Town Center has exceptional visibility with
submarket in terms of square footage in the area.
over 2,000 feet of frontage along Highway 65 with an
Currently, the Rocklin/Roseville office submarket contains
estimated average daily traffic counts of 182,000.
2.5 million square feet of available office square footage,
due to residential and mortgage related tenant exposure.
eO
Blu
31,
182,000 ADT
With the increasing housing affordability, and projected
population growth, and the office vacancy in the submarket
is projected to decrease to a stabilized level of approximate
8%. This stabilization process will create an estimated
a
000 ks Blvd
AD .
T
65
Lone
levard
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o
Tree B
Interstate 80 - A partnership between the City of Roseville
6,160 office jobs in the submarket which is not factoring
any additional office developments planned in the area.
Below demonstrates the potential growth in office jobs
when factoring existing and planned inventory.
and Caltrans is planning an expansion of Interstate 80
Office
Market
Availability
12.0M SF
2.5M SF
Projected Additional
Absorption
Jobs
at Douglas Boulevard to include an additional lane to
Current Inventory
improve the traffic flow to Highway 65. This addition will
Prop/Under Const.
2.0M SF
2.0M SF
1.84M SF
7,360
Total
14.0M SF
4.5M SF
3.38M SF
13,520
mitigate traffic on the most congested stretch of Interstate
80 between Sacramento and South Placer.
Lincoln Bypass – The Federal Highway Administration and
Caltrans are constructing a four-lane freeway around the
City of Lincoln to bypass the downtown section of Highway
65.
This bypass will make transit between Sheridan/
Marysville and Rocklin/Roseville much more convenient,
therefore allowing more potential shoppers to visit the
Blue Oaks Town Center.
*Assuming 8% Vacancy & 250 SF per Employee
1.54M SF
6,160
Market Analysis 17
5-Miles
3-Miles
Rocklin
1-Mile
65
Loomis
80
65
Roseville
Granite Bay
80
Citrus Heights
Demographic Analysis
1 Mile
3 Mile
5 Mile
Rocklin
United States
3,736
88,947
156,552
55,895
304,141,549
38.1%
27.4%
21.4%
22.6%
4.9%
1,271
32,327
59,472
20,064
114,694,201
$98,997
$105,959
$93,816
$107,614
$67,918
% White
73.9%
81.0%
81.6%
81.6%
72.7%
% Black
3.9%
2.5%
2.2%
1.9%
12.4%
% Asian
14.9%
9.4%
8.0%
9.0%
4.4%
Population
Projected Population Growth (2012)
Households
Avg. HH Income
8.2%
8.2%
10.3%
8.0%
15.2%
Bachelor’s Degree
32.2%
28.1%
24.3%
27.9%
15.8%
Master’s Degree
13.3%
10.9%
10.0%
10.5%
8.9%
% Hispanic
Driving Direction Aerial Overlay
80
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Pleasant Grove Bo
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Driving Directions From Sacramento international Airport (SMF):
Head South on Earhart Drive Towards Airport Boulevard (0.2 mi)
Slight Right at Airport Boulevard (0.3 mi)
Continue Straight onto Earhart Drive (0.5 mi)
Slight Left at Airport Boulevard (0.8 mi)
Take the Ramp onto I-5 South (5.7 mi)
Take Exit 522 to Merge onto I-80 East Towards Reno (19.8 mi)
Take Exit 106 for State Highway 65 Towards Marysville/Lincoln (0.7 mi)
Merge onto CA-65 North (2.5 mi)
Take the Blue Oaks Boulevard Exit Towards Washington Boulevard (0.4 mi)
Turn Right at Blue Oaks Boulevard (0.2 mi)
Turn Left at Fairway Drive/Lone Tree Boulevard (0.2 mi)
Make a U-Turn at Grand Drive (0.1 mi)
PROperty Address:
Blue Oaks Town Center
Miles: 30
6604 – 6708 Lone Tree Boulevard
Approximate Drive Time: 35 Minutes
Rocklin, California 95765
193
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Industrial Avenue
65
Base Line Road
99
Antelope Road
80
Elkhorn Blvd
Greenback Lane
5
Arco Arena
Bl
vd
Madison Avenue
Au
bu
rn
McClellan
Airfield
80
80
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St
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16
160
Arden Way
State
Capitol
Fair Oaks Blvd
50
Sunrise Blvd
Mather
Airport
Jack
son
Roa
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99
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Sto
5
Freep
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California State
University, Sacramento
d
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Frank
South Watt Ave
Ro
ad
50
Gr
an
tL
in
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80
El Camino Ave
Hazel Avenue
Watt Avenue
Rio Linda Blvd
Sacramento
International
Airport
Folsom Blvd
Elverta Road