NNN Retail Investment for Sale

Transcription

NNN Retail Investment for Sale
12341-12345 San Pablo Ave at Hwy 80
4521 Barrett Ave
Richmond, CA
Confidential Offering Memorandum
Presented by:
NAI Northern California
Commercial Real Estate Services, Worldwide.
101 California Street, Suite 850
San Francisco, CA 94111
tel: 415-481-0984
fax: 415-354-3501
03
Investment Summary
07
Tenant Overview
11
Financials
13
Retail Map
14
Property Photos
18
Location Overview
22
Demographics
Executive Summary
Price
$3,551,000
Price per SF
$256
Gross Leasable Area (SF)
13,867
Occupancy Rate
100%
Total Land Area (SF)
37,374
NOI
$213,117
Total Lot Size (AC)
0.85
Cap Rate
6%
Investment Highlights
• 3 Separate Parcels with Shared Access and Parking
• Corner Location Directly off the I-80 Freeway
• NNN Leases Throughout
• Shared Access with KFC/Long John Silver’s
• Multiple Nationally Branded Tenants with Corporate Signators
• Traffic Count of 20K+ on San Pablo Ave
• Excellent Visibility from I-80 Freeway (200,000+ ADT)
• Healthy Rent Increases Throughout
• Newly Remodeled Goodwill & Subway Sandwich Suites
Investment
Summary
Investment Summary
This multi-tenant retail investment, at San Pablo
and Barrett Avenues in Richmond, represents
an excellent opportunity to get in early on one of
the Bay Area’s last affordable cities. The project
consists of three separate parcels, with one
building on each parcel and shared access and
parking.
Parcel A consists of a two-tenant, 11,050 SF
building on a .59 acre lot, with a Subway restaurant
and Goodwill store. The building facade was
upgraded in 2015.
Parcel B features a 1,800 SF building on a .16 acre
lot, currently occupied by Taqueria LaBamba - a
local favorite restaurant. Taqueria LaBamba has
been operating in this location since 1990. The
building itself was partially remodeled in 2012.
Parcel C consists of a 1,017 SF building with
mezzanine space, on a .10 acre lot, and is
currently being utilized as a live/work audio visual
and multimedia arts studio. The building itself was
completely remodeled in 2013, and the tenant is
currently on a one-year lease extension at below
market rents.
3
Investment
Summary
Building Summary
Parcel A
Parcel B
Parcel C
Address
12341 - 12343 San Pablo Ave
12345 San Pablo Ave
4521 Barrett Ave
User
Goodwill, Subway
Taqueria LaBamba
A Puls
APN
517-090-031
517-090-028
517-090-032
Bldg Size (SF)
11,050
1,800
1,017 + mezz
Approx Lot Size (SF)
25,613
7,100
4,661
Approx Lot Size (AC)
0.59
0.16
0.10
Year Remodeled
2015
2012
2013
Parking Count
26
12
7
Zoning
C-2
C-2
C-2
4
Investment
Summary
I-80 Off Ramp
+/- 2
00
AAD ,000
T
Site Aerial
ADT
00 A
20,4
A
+/-
B
I-80 On Ramp
C
I-80 On Ramp
+/- 12,80
0 AADT
5
Investment
Summary
Site Plan
Bldg B
Bldg A
Parcel Not a Part
n
Bldg C
KFC
Joh
ong
/ L er's
v
Sil
6
Tenant Overview
Subway
More than forty years after the founders opened what
would later become the first Subway Sandwich location,
Subway now has franchises throughout the United States
and in 98 other countries, with locations in traditional
and nontraditional sites alike.
• Number of Locations: 43,916
The lease signator on the subject property is Subway
Real Estate, LLC. The operator is based locally, and has
approximately 50 locations, substantially all of which are
in the San Francisco Bay Area. This location has been in
operation since 2004, showing dedication to site. The
lease features 2% compounding annual increases.
• Franchise Units (US): 26,972
• Operator Location Count: Approx. 50
• Website: www.subway.com
• Lease Signator: Subway Real Estate, LLC
• Continuous Operation Since 2004
• Remodeled 2015
• 2% compounding annual increases
FRANCHISE RANKING
Franchise 500:
#3 (2015)
Fastest-Growing:
#1 (2015)
America's Top Global
#3 (2015
7
Tenant Overview
Goodwill Industries
Goodwill Industries of the Greater East Bay was founded in
1919 and incorporated as an independent nonprofit in 1936.
It is part of an international movement with more than 165
Goodwill agencies in the United States and Canada, and
another 14 affiliated organizations in other countries globally.
The first Goodwill agency was founded in 1902 in Boston
Massachusetts by Reverend Edgar J. Helms, a Methodist
minister who hired those living in poverty and recent
immigrants with limited language English skills to mend
clothing and household goods and resell them to support
• Store Count: 3,000+
the community programs. Independent Goodwill agencies,
• Website: www.eastbaygoodwill.com
which are all members of Goodwill Industries International,
• Continuous Operation Since 2003
were established throughout the United States in the years
• Remodeled 2015
following this innovative model.
8
Tenant Overview
Taqueria LaBamba
Taqueria La Bamba is an unassuming casual eatery that
has been a favorite of East Bay locals for over 25 years.
LaBamba serves classic Latin-American fare, and currently
scores 4 out of 5 stars on yelp.com
(http://www.yelp.com/biz/taqueria-la-bamba-richmond)
(http://www.localeats.com/Restaurant_Detail/Richmond/
Taqueria-La-Bamba/8058/)
• Continuous Operation as Taqueria
LaBamba for 25+ Years
• Yelp Rating of 4 out of 5 Stars
• LocalEats Recognized
• Partial remodel with ADA upgrade in
2013
9
Tenant Overview
A. Puls
A. Puls is a composer, musician, audio engineer, and
video artist. He records music under the names A Magic
Whistle and Chilly William. He is currently using the space
as a work/live studio, and not only composes his music
here, but also develops electronic instruments for his
performances.
• 1 Year Lease with No Extension Options
• Below Market Rents
• Mezzanine Space
• Occupied by Tenant Since 2012
• Bldg Previously Used as Office Space
10
Financials
Operating Income
Income
Rental Income
Expense Recoveries
Potential Gross Income
Vacancy at 0%
Effective Gross Income
Expenses
Proforma Property Taxes
Utilities & Rubbish Removal
Insurance
Repair & Maintenance
Mgmt Expenses
Total Operating Expenses
Net Operating Income
2016 Expected Actuals
213,117
71,130
284,247
284,247
PSF
15.37
5.13
20.50
20.50
55,468
1,540
9,228
2,415
2,479
71,130
4.00
0.11
0.67
0.17
0.18
5.13
213,117
$ 15.37
11
Financials
Rent Roll
Monthly Monthly
Rent
Rent PSF
11/16/15
11/16/16
11/16/17
11/16/18
11/16/19
11/16/20
11/16/21
11/16/22
11/16/23
11/16/24
03/01/15
03/01/16
03/01/17
03/01/18
$11,747
$11,982
$12,222
$12,466
$12,715
$12,970
$13,229
$13,494
$13,763
$14,039
$2,040
$2,081
$2,122
$2,165
$1.23
$1.25
$1.28
$1.31
$1.33
$1.36
$1.39
$1.41
$1.44
$1.47
$1.36
$1.39
$1.41
$1.44
$140,964
$143,783
$146,659
$149,592
$152,584
$155,636
$158,748
$161,923
$165,162
$168,465
$24,480
$24,970
$25,469
$25,978
1,800
03/01/15
03/01/16
03/01/17
03/01/18
03/01/19
$2,775
$2,858
$2,944
$3,032
$3,123
$1.54
$1.59
$1.64
$1.68
$1.74
$33,300
$34,299
$35,328
$36,388
$37,479
$18.50
$19.06
$19.63
$20.22
$20.82
1,017
03/01/15
$1,065
$1.05
$12,780
$12.57
Tenant
Lease Start
Lease End
Size (SF)
12341 San Pablo Ave.
Goodwill
Industries Grtr
East Bay
11/15/2003
11/15/2025
9,550
Subway R/E
Corp
01/01/2004
02/28/2019
1,500
Taqueria
LaBamba
08/14/1990
02/28/2020
4521 Barrett
A. Puls
6/1/2012
12/31/2016
Total
CAM
Annual
Recovery
Rent PSF
Type
$14.76
NNN
$15.06
NNN
$15.36
NNN
$15.66
NNN
$15.98
NNN
$16.30
NNN
$16.62
NNN
$16.96
NNN
$17.29
NNN
$17.64
NNN
$16.32
NNN
$16.65
NNN
$16.98
NNN
$17.32
NNN
Lease Yr
Starting
Address
Annual
Rent
Options
Rental Increases
(1) 5 Yrs
2% compounding
increases annually
(1) 5 Yrs
2.0% compounding
increases annually
NNN
NNN
NNN
NNN
NNN
(1) 5 Yrs
3% compounding
increases
annually
NNN
None
None
13,867
12
Map
Retail Aerial
Richmond
City Hall
13
Property Photos
Property Photos
Parcel A
14
Property Photos
Property Photos
Parcel B
15
Property Photos
Property Photos
Parcel C
16
Property Photos
Property Photos
Street View and Adjacent Parcel
17
Richmond, CA
Location
Overview
Located in the Eastern region of the San Francisco Bay
Area, Richmond, California borders the cities of San Pablo,
Albany, El Cerrito and Pinole in addition to the unincorporated
communities of North Richmond, Hasford Heights,
Kensington, El Sobrante, Bayview-Montalvin Manor, Tara
Hills, and East Richmond Heights, and briefly San Francisco
on Red Rock Island.
Richmond has a ready workforce, acres of space to locate
and expand, great transportation connections, a growing
economy – and a proactive Office of Economic Development
that’s ready and able to provide businesses low-cost loans
for working capital, tax incentives, relocation assistance and
favorable contracting opportunities.
Richmond’s Office of Economic Development (OED) helps
business owners relocate existing operations, works with
entrepreneurs and investors to locate businesses for sale,
and facilitates business-to-business transactions.
18
Location
Overview
Contra Costa County, CA
Contra Costa County is included in the San Francisco-OaklandHayward, CA Metropolitan Statistical Area. It occupies the northern
portion of the East Bay region and is primarily suburban.
Contra Costa County is home to more than one million residents, and
was one of the original 27 counties established in California in 1850.
Comprised of 19 cities and many established communities in the
unincorporated area, it is the ninth most populous county in the state.
The most notable landmark in the county is Mount Diablo, rising 3,849
feet at the northern end of the Diablo Range. It is the centerpiece of Mt.
Diablo State Park, one of many recreation areas residents and visitors
can enjoy. The East Bay Regional Park District is comprised of more
than 100,000 acres within 65 parks, including more than 1,200 miles
of trails.
19
Berkeley Global Campus:
A New Bolder, Vision for Richmond Bay
Location
Overview
Chancellor Nicholas Dirks laid out an “unabashedly bold” new vision for UC Berkeley’s Richmond Field
Station on Wednesday, telling faculty members of plans to remake the site as a global campus and
“living laboratory” in partnership with public universities from around the world, as well as with private
industry.
In a presentation to the Academic Senate, Dirks unveiled the outlines of the proposed Berkeley Global
Campus at Richmond Bay, a reimagining of what was originally planned as a joint “second campus”
for Lawrence Berkeley National Laboratory and UC Berkeley. In 2013, the Lab lost expected U.S.
Department of Energy funding in the wake of federal budget sequestration, leaving development plans
for the Richmond Field Station in limbo.
But it also opened the door to the Berkeley Global Campus, or BGC, which Dirks on Wednesday
called “a transformational model for expansion of our educational and research activities in a global
context.”
“We have the opportunity to become the first American university to establish an international campus
in the United States, right here in the East Bay,” he said. Instead of planting the UC Berkeley flag in a
foreign country — the standard “export model” for global universities — BGC would be “a new form
of international hub where an exclusive group of some of the world’s leading universities and high-tech
companies will work side-by-side with us in a campus setting.”
Along with its research mission — similar to that previously envisioned for the Richmond Bay Campus
— BGC will have a strong educational component as well, with both undergraduate and graduatelevel academic programs for U.S. and international students. Programs would be aimed at giving
students the tools “to tackle global challenges through a curriculum centered on global governance,
ethics and political economy, cultural and international relations,” as well as “direct involvement in
special projects with global implications and applications.”
And despite the new vision, “One thing that hasn’t changed regarding plans for the Richmond campus
is our commitment to the community,” added Dirks, vowing to make BGC “a catalyst for developing
the city’s south shoreline into a vibrant mixture of high-intensity light industrial, commercial and
residential uses.”
- Berkeley News, October 30, 2014
20
Location
Overview
Ford Point Bringing New Life To Richmond
The historic Ford Assembly Building in Richmond, designed in 1930 by renowned architect Albert
Kahn, is now fully reborn as a mixed-use property called Ford Point, housing businesses, a
restaurant, light industrial and an entertainment space called the Craneway Pavilion.
Inside the imposing brick building, SunPower assembles rooftop solar racks near the spot
where World War II-era workers tested and outfitted armored tanks. Down the hall, Mountain
Hardwear sells and designs outdoor gear where Ford autoworkers used to build Model A cars.
The Craneway Pavilion - a huge, glass-enclosed space where cranes once hoisted completed
vehicles onto train cars - now hosts a diverse range of cultural and entertainment events. Barefoot
Merce Cunningham dancers have twirled and leaped in performance there; thousands of silent
meditators spent two days sitting with Buddhist teacher Pema Chodron; and raucous women's
roller derby skaters regularly explode into action on the floor. Ford Point's final piece, a permanent
home for the visitor center of the Rosie the Riveter/World War II Home Front National Historical
Park, is being negotiated and an agreement should be inked this year.
Developer Eddie Orton, a down-to-earth, gregarious man whose Orton Development Inc. of
Emeryville has developed about 16 million square feet of space nationwide, spent two years and
$40 million renovating Ford Point, paid for by tax credits and money from GE Capital.
- SF Gate, November 14, 2010
Find out more: http://www.craneway.com/
21
6
Demographics
DEMOGRAPHICS
Demographics
Richmond
Demographics
Map
Population
1 Mile
2 Miles
3 Miles
TOTAL POPULATION
26,973
85,538
163,792
MEDIAN AGE
36.6
36.5
35.5
MEDIAN AGE (MALE)
35.3
35.4
34.4
MEDIAN AGE (FEMALE)
38.8
38.0
36.8
Housholds & Income
1 Mile
2 Miles
3 Miles
TOTAL HOUSEHOLDS
9,712
30,537
57,464
# OF PERSONS PER HH
2.8
2.8
2.9
AVERAGE HH INCOME
$73,135
$67,834
$66,635
AVERAGE HOUSE VALUE
$409,512
$395,752
$399,537
Race
1 Mile
2 Miles
3 Miles
% WHITE
46.6%
46.8%
47.3%
% BLACK
25.4%
23.9%
22.7%
% ASIAN
14.9%
15.1%
16.5%
% HAWAIIAN
0.1%
0.1%
0.2%
% INDIAN
0.3%
0.4%
0.4%
% OTHER
12.8%
13.9%
13.1%
% HISPANIC
31.0%
35.3%
37.5%
22
27
This Offering Memorandum has been prepared by
Broker for use by the principal (“Principal”) to whom
Broker has provided this Offering Memorandum. The
use of this Offering Memorandum and the information
provided herein is subject to the terms, provisions and
limitations of the Confidentiality Agreement furnished
by Broker and executed by Principal prior to delivery of
this Offering Memorandum. Although the information
contained herein is based upon sources believed to
be reasonably reliable, Owner and Broker, on their
own behalf, and on behalf of their respective officers,
employees, shareholders, partners, directors,
members and affiliates, disclaim responsibility
or liability for inaccuracies, representations and
warranties (expressed or implied) contained in, or
omitted from, the Offering Memorandum or any
other written or oral communication or information
transmitted or made available to the recipient of
this Offering Memorandum. In amplification of and
without limiting the foregoing, summaries contained
herein of any legal or other documents are not
intended to be comprehensive statements of the
terms of such documents but rather only outlines of
some of the principal provisions contained therein,
and no representations or warranties are made as to
the completeness and/or accuracy of the projections
contained herein. Prospective purchasers of the
Property should make their own investigations and
conclusions without reliance upon this Offering
Memorandum, the information contained herein
or any other written or oral communication or
information transmitted or made available. Additional
information and an opportunity to inspect the
Property will be made available upon written request
by interested and qualified prospective purchasers.
Owner expressly reserves the right, exercisable in
Owner’s sole and absolute discretion, to withdraw
the Property from being marketed for sale at any time
and for any reason. Owner and Broker each expressly
reserves the right, exercisable in their sole and
absolute discretion, to reject any and all expressions
of interest or offers regarding the Property and/or to
terminate discussions with any entity at any time with
or without notice. Broker is not authorized to make
any representations or agreements on behalf of
Owner. Owner shall not have any legal commitment
or obligation to any entity reviewing this Offering
Memorandum or making an offer to purchase the
Property unless and until a written agreement for
the purchase and sale of the Property has been fully
executed, delivered and approved by Owner and the
other party thereto and any conditions to Owner’s
obligations hereunder have been satisfied or waived.
If you have no interest in the Property at this time,
return this Offering Memorandum immediately to:
NAI Northern California
101 California Street, Suite 850
San Francisco, CA 94111
Chris Lomuto
BRE License # 01962410
o: 415-480-7965
m: 650-454-5560
f: 415-354-3501
[email protected]
Milo Spector
BRE License # 01959211
o: 415-480-0213
m: 510-461-4505
f: 415-354-3501
[email protected]
o: 415-481-0984
f: 415-354-3501
www.nainorcal.com

NNN Retail Investment for Sale

Transcription

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