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Offering Memorandum Broadway Plaza Placerville, CA

OM - Broadway Plaza - Placerville, CA

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Page 1: OM - Broadway Plaza - Placerville, CA

Offering Memorandum

Broadway PlazaPlacerville, CA

Page 2: OM - Broadway Plaza - Placerville, CA

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CONFIDENTIALITY AND DISCLAIMER

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Joshua JohnsonAssociatePALO ALTOTel: (650) 391-1784Fax: (650) [email protected] License: CA 01930127

Kirk Trammell Senior Vice President InvestmentsDirector, National Retail Group PALO ALTOTel: 650-391-1809 Fax: [email protected] License: CA 01038657

David Cutler AssociatePALO ALTOTel: (650) 391-1753Fax: (650) [email protected] License: CA 01514751

exclusively listedInvestment Sales:Exclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

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Table of Contents

Broadway Plaza

EXECUTIVE SUMMARYOffering Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Summary of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

PROPERTY DESCRIPTIONProperty Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Local Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Aerial Photo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Development Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Parcel Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

FINANCIAL ANALYSISRent Roll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Operating Statement - Income & Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

MARKET OVERVIEWLocation Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

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summaryE X E C U T I V E S U M M A R Y

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Vital Data

Offering Summary Major EmployeesCompany Local Employees

Marshall Hospital 1,016

County of El Dorado 749

United States Department of Navy 351

El Dorado Irrigation District 300

El Dorado County Office of Education 252

Department of Transportation 180

Gold Country Health Center 165

Safe Credit Union 160

El Dorado High School 150

Eldorado National Forest 150

More Workshop 150

Walmart 150

TENANT GLA LEASE EXP LEASE TYPE

County of El Dorado 6,020 4/30/2017 Modified Gross

Golden Dragon Restaurant 4,000 4/1/2019 Modified Gross

Accurate Tax Services 3,581 10/1/2019 Modified Gross

Foothill Taekwondo 3,200 12/31/2016 Modified Gross

Subway 1,500 10/31/2022 Modified Gross

Major Tenants

EXECUTIVE SUMMARY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W00106242

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WBroadway Plaza

Demographics 1-MILE 3-MILES 5-MILES

2014 Total Population 4,584 15,494 30,859

2019 Total Population 4,710 15,863 31,577

2014 Total Households 1,889 6,337 12,552

2019 Total Households 1,964 6,541 12,939

Median HH Income $44,228 $49,193 $51,208

Per Capita Income (based on Total Population)

$28,458 $29,006

Average (Mean) HH Income $64,415 $67,620 $70,200

$27,821

Offering Highlights

Broadway Plaza1319-1353 Broadway, Placerville, CA 95667

CAP Rate – Current 6.32%

Net Operating Income - Current $265,305

Price $4,200,000

Down Payment* $2,000,000

Price per Square Foot (GLA) $149.20

Gross Leasable Area (GLA) 28,151 SF

Year Built 1963

Lot Size 2.067 Acres

Parking 122 Spaces

Asset Type Retail/Shopping Center

* Owner will carry back a note at market rates and term to be negotiated.

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Investment Overview

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W00106243

EXECUTIVE SUMMARY

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Broadway Plaza

Marcus & Millichap has been selected to exclusively market for sale the Broadway Plaza shopping center located in Placerville, California . This offering represents the opportunity to acquire a well-maintained neighborhood shopping center located along U .S . Highway 50 in the Sierra Nevada foothills . The subject is a 28,151-square-foot shopping center that is leased to a mix of retail, restaurant, and service tenants . The property has a stable tenant base; five of the seven tenants have been at the property for five years or longer . El Dorado County Sheriff ’s Department is the largest tenant in the property, occupying approximately 6,020 square feet, and they have occupied the center for more than eight years . Additionally, two of the restaurant tenants, Subway and Golden Dragon Restaurant, have been at the property since the 1990’s .

Broadway Plaza is located at 1319-1353 Broadway in Placerville . Broadway is the main commercial thoroughfare in the eastern side of Placerville and there are shopping cen-ters, fast food restaurants, gas stations, limited service hotels, and other commercial buildings in the vicinity of Broadway Plaza . The property backs to U .S . Highway 50 and has visibility from this roadway; additionally, the property has a pylon sign that is visible from the highway . There is an interchange with U .S . Highway 50 at Schnell School Road, less than one-quarter mile from the property . More than 35,000 vehicles pass the site each day along U .S . Highway 50 and traffic counts along Broadway aver-age 12,000 vehicles per day . Broadway Plaza has excellent access, as well as excellent visibility and exposure along U .S . Highway 50 and Broadway .

The subject property benefits from its location along Broadway in the retail core of Placerville . Major retailers in the area include Save Mart, Rite Aid, Grocery Out-let, Dollar Tree, and Tractor Supply Company . National retailers such as McDonald’s, Starbucks, Taco Bell, Les Schwab, Baskin Robbins, The UPS Store, and Wells Fargo are also located near the subject . Historic downtown Placerville is less than one mile west of the property and has many restaurants, boutiques, art galleries, and antique shops that attract thousands of visitors each year .

The building has been well-maintained by the seller, who has made many improve-ments to the property in recent years . The landlord has spent more than $350,000 over the past five years to construct tenant improvements, perform ADA upgrades, replace HVAC units, install a new drip irrigation system, and seal cracks in the parking lot . Overall, the property is in good condition and has good appeal as compared to the competitive retail centers in the area .

Investment Highlights

■■ Neighborhood shopping center located along U .S . Highway 50 in the Sierra Nevada foothills

■■ El Dorado County Sheriff ’s Department is the largest tenant

■■ Five of the seven tenants have occupied the property for more than five years

■■ More than 30,000 vehicles pass the site each day on U .S . Highway 50

■■ The property has been well-maintained with many recent capital improvements

■■ Broadway Plaza is located less than one mile from historic downtown Placerville

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descriptionP R O P E R T Y D E S C R I P T I O N

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Property Details

PROPERTY DESCRIPTION

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WBroadway Plaza

6This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0010624

THE OFFERING

Property Broadway Plaza

Property Address 1319-1353 BroadwayPlacerville, CA 95667

SITE DESCRIPTION

Year Built 1963

Gross Leasable Area (GLA) 28,151 SF

Lot Size 2.067 Acres

Type of Ownership Fee Simple

Parking 122 Spaces

Parking Ratio 4.57 per 1,000 SF

Ownership Fee Simple

Number of Stories 1

Parking Surface Lot

Topography Generally Level

Landscaping Minimal; Trees and Shrubs Along Broadway

CONSTRUCTION

Foundation Reinforced Concrete Slab

Framing Concrete Masonry Unit

Exterior Stone and Painted Brick and Block

Parking Surface Asphalt

Roof Flat; Tar and Gravel

MECHANICAL

HVAC Roof-Mounted Package Units

Fire Protection None

Utilities Public; All to Site

PARCELS

Number of tax parcels One

APN 002-251-18-100

UTILITIES

Gas Tenant Pays (Pacific Gas & Electric)

Electric Tenant Pays (Pacific Gas & Electric)

Water Tenant Pays (City of Placerville)

Sewer Tenant Pays (City of Placerville)

Trash Tenant Pays (El Dorado Disposal)

AVAILABLE SPACE CONDITION

Vanilla Shell

ACCESS POINTS

Three Curb Cuts Along Broadway

ZONING

HWC, Highway Commercial Zone

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Local Map

PROPERTY DESCRIPTION

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Broadway Plaza

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0010624

Broadway Plaza

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Regional Map

PROPERTY DESCRIPTION

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WBroadway Plaza

10This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0010624

Broadway Plaza

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Aerial Photo

SUBJECT PROPERTY

McDonald’s

Historic Downtown Placerville

Eskaton Village Placerville

PROPERTY DESCRIPTION

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0010624

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Site Plan

PROPERTY DESCRIPTION

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WBroadway Plaza

12This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0010624

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analysisF I N A N C I A L A N A LY S I S

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Rent Roll

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14

FINANCIAL ANALYSIS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0010624

SUITE TENANT SIZE (SF)LEASE START

LEASE ENDANNUAL

RENTMONTHLY

RENTRENT PER

SFRENT INCREAS-

ESEXPENSE

BASISOPTIONS

1319 Foothill Taekwondo 3,200 FEB-10 DEC-16 $41,928 $3,494 $1.09 $3,684.17 Mod. Gross 1, 2-yr option

MEZZ Owner-Occupied* 1,500 MAR-16 TBD $21,180 $1,765 $1.18 TBD Mod. Gross None

1323 El Dorado County 5,000 JAN-08 APR-17 $84,600 $7,050 $1.41 Flat Mod. Gross 1, 2-yr options

1327 Owner-Occupied* 5,000 MAR-16 TBD $70,584 $5,882 $1.18 TBD Mod. Gross None

1329 Subway 1,500 MAY-90 OCT-22 $33,000 $2,750 $1.83 CPI Annual Mod. Gross None

1331 Vacant* 2,000 MAR-16 TBD $28,236 $2,353 $1.18 TBD Mod. Gross None

1337 El Dorado County 1,020 JAN-08 APR-17 $17,258 $1,438 $1.41 Flat Mod. Gross 1, 2-yr options

1341 Golden Dragon Restaurant** 4,000 APR-12 APR-19 $48,108 $4,009 $1.00 TBD Mod. Gross 2, 3-yr options

1345 Accurate Tax Services 3,581 OCT-11 OCT-19 $50,952 $4,246 $1.19 3.0% Annual Mod. Gross 2, 5-yr options

1349 La Palmita 450 APR-15 MAR-17 $7,311 $609 $1.35 3.0% Annual Mod. Gross None

1351 La Palmita 450 APR-15 MAR-17 $7,311 $609 $1.35 3.0% Annual Mod. Gross None

1353 Mother Lode Glass 450 AUG-15 AUG-18 $7,200 $600 $1.33 2.0% annual Mod. Gross 1, 2-yr option

TOTAL / AVERAGE 28,151 $417,669 $34,806 $1.24

Comments*The owner currently occupies Suite 1327 and the mezzanine and will lease this space back at the close of escrow. The rent and lease term are negotiable.*The owner will lease back Suite 1331 at the close of escrow. The rent and lease term are negotiable.**Golden Dragon Restaurant exercised a renewal option and a new lease is currently being negotiated.

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Broadway PlazaFINANCIAL ANALYSIS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0010624

Annualized Operating Data

INCOME CURRENT PER SF

Gross Potential Rent $417,669 14.84

Expense Reimbursements $7,500 $0.27

Gross Potential Income $425,169 $15.10Vacancy/Collection Allowance ($17,007) ($0.60)Effective Gross Income $408,162 $14.50Total Expenses $142,857 $5.07Net Operating Income $265,305 $9.42

EXPENSES CURRENT PER SF

Real Estate Taxes $45,299 $1.61

Insurance $4,650 $0.17

Repairs & Maintenance $50,000 $1.78

Utilities $15,500 $0.55

General Operating $7,000 $0.25

Management Fee (% of EGI) $20,408 $0.72

Total Expenses $142,857 $5.07

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overviewM A R K E T O V E R V I E W

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Location Overview

EXECUTIVE SUMMARY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W001062418

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WBroadway Plaza

Placerville is located in western El Dorado County in the foothills of the Sierra Nevada range and is situated approximately 45 miles east of downtown Sacramento and 60 miles west of Lake Tahoe . The city has a prominent place in California history, due to its prox-imity to Sutter’s Mill and the role the city played in the Gold Rush . Placerville was incor-porated in 1854 and is the county seat of El Dorado County; at the time it was incorpo-rated, it was the third largest town in California at the time . To this day, the city remains an important historical site in Gold Country . The downtown area has many buildings that date back to the 1800’s and several of these structures are on the National Register of Historic Places . Additionally, its proximity to Lake Tahoe and the resorts in the Sierra Nevada Mountains makes Placerville a popular destination for visitors during all seasons .

At the end of 2015, Placerville had an estimated population of 10,406 . This represents an 8 .6 percent increase over the population of 9,575 as of 2000 . The population is forecast to increase to 10,631 by 2020, which represents a 2 .2 percent increase over the current population . The median household income in the city is estimated at $50,282 and the per capita income is estimated at $28,770 . The median income for the city is forecast to grow steadily through 2020, with an 11 .8 percent increase to $56,220 .

The economy of Placerville is concentrated in the health services, retail trade, and public administration sectors . Health care and social assistance jobs represent approximately 28 percent of all employment, with Marshall Medical Center being the largest employer in this field . The nonprofit healthcare provider operates a 113-bed hospital in Placerville, as well as outpatient clinics and service locations throughout El Dorado County . Eskaton Village, which operates a multi-level senior housing and care facility, is also a major em-ployer in this field . Government jobs constitute about 19 percent of local employment . Placerville is the county seat and the various agencies of El Dorado County employ more than 1,000 people . The retail sector is nearly equal to the public administration sector and 18 percent of local jobs are in retail employment . Downtown Placerville is a popular tourist destination and has many restaurants, antique stores, art galleries, boutiques and other retail establishments .

El Dorado County covers approximately 1,786 square miles and encompasses several unique geographic areas . The western part of the county is the most densely populated region and includes the cities of Placerville, El Dorado Hills, Cameron Park, Coloma, Garden Valley, Diamond Springs, and Shingle Springs . These communities lie in the foothills of the Sierra Nevada Mountains and are largely influenced by the growth of the Sacramento region . The center of the county is dominated by the mountainous terrain of the Sierra Nevada range and the sparsely populated El Dorado National Forest . Lake Tahoe is located in the easternmost part of the county and this region includes all of the lakefront communities from South Lake Tahoe to Tahoma . The varied geography and rich history of the county presents a wide range of activities for residents and visitors; hiking, camping, mountain biking, and skiing in the Sierra Nevada Mountains; boating on Lake Tahoe and Folsom Lake; visiting historic Gold Country sites in Coloma, Sutter’s Mill, and Placerville; wine tasting at the many vineyards in the area; and shopping at antique stores and art galleries in the many historic downtown areas .

Location Highlights■■ Placerville is the county seat of El Dorado County

■■ The city is located in the Sierra Nevada foothills in the heart of Gold Country

■■ Downtown Placerville is a popular tourist destination

■■ The local economy is stable and is centered in the healthcare, government, and retail sectors

■■ El Dorado County has experienced significant growth over the past fifteen years

■■ The county draws visitors from all over the world to Lake Tahoe and El Dorado National Forest

El Dorado County had an estimated population of 181,807 at the end of 2015 . This is a 16 .4 percent increase over the population of 156,183 in 2000 . The population is forecast to increase to 194,536 by 2020, which is a 7 .0 percent increase over the current population . The median household income in El Dorado County is estimated at $72,044 and the per capita income is estimated at $38,950 . The median income for the county is forecast to increase through 2020, with a 14 .0 percent increase to $82,104 .

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Demographic Summary

MARKET OVERVIEW

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0010624

INCOME 1-MILE 3-MILES 5-MILES

$ 0 - $14,999 14.00% 12.50% 11.40%

$ 15,000 - $24,999 14.10% 10.20% 10.20%

$ 25,000 - $34,999 12.70% 12.10% 11.10%

$ 35,000 - $49,999 15.20% 15.80% 16.20%

$ 50,000 - $74,999 17.10% 19.30% 19.50%

$ 75,000 - $99,999 11.00% 11.90% 12.00%

$100,000 - $124,999 6.60% 8.60% 8.40%

$125,000 - $149,999 2.30% 3.40% 4.80%

$150,000 - $199,999 3.70% 3.20% 3.40%

$200,000 - $249,999 1.20% 1.10% 1.10%

$250,000 + 2.00% 1.80% 1.90%

2014 Median Household Income $44,228 $49,193 $51,208

2014 Per Capita Income $27,821 $28,458 $29,006

2014 Average Household Income $64,415 $67,620 $70,200

HOUSEHOLDS 1-MILE 3-MILES 5-MILES

2000 Households 1,729 5,924 11,732

2010 Households 1,898 6,368 12,624

2014 Households 1,889 6,337 12,552

2019 Households 1,964 6,541 12,939

2014 Average Household Size 2.31 2.36 2.41

2014 Daytime Population 3,149 9,363 16,307

2000 Owner Occupied Housing Units 53.95% 58.84% 66.99%

2000 Renter Occupied Housing Units 39.62% 35.91% 28.22%

2000 Vacant 6.43% 5.24% 4.79%

2014 Owner Occupied Housing Units 51.44% 58.39% 66.08%

2014 Renter Occupied Housing Units 48.56% 41.61% 33.92%

2014 Vacant 9.56% 8.75% 8.26%

2019 Owner Occupied Housing Units 51.06% 58.18% 65.82%

2019 Renter Occupied Housing Units 48.94% 41.82% 34.18%

2019 Vacant 10.07% 9.24% 8.76%

POPULATION 1-MILE 3-MILES 5-MILES

2000 Population 4,169 14,433 29,133

2010 Population 4,605 15,557 30,996

2014 Population 4,584 15,494 30,859

2019 Population 4,710 15,863 31,577

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Demographic Summary

Demographic data © 2015 by Experian/Applied Geographic Solutions.

MARKET OVERVIEW

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20This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID W0010624

Race and Ethnicity The current year racial makeup of your selected area is as follows: 87 .38% White, 0.52% Black, 0.16% Native American and 1.04% Asian/Pacific Islander . Compare these to Entire US averages which are: 71 .60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race . People of Hispanic origin make up 13 .65% of the current year population in your selected area . Compare this to the Entire US average of 17 .13% .

Housing In 2000, there were 8,254 owner occupied housing units in your area and there were 3,477 renter occupied housing units in your area . The median rent at the time was $591 .

Employment In 2014, there are 16,307 employees in your selected area, this is also known as the daytime population . The 2000 Census revealed that 58 .66% of employees are employed in white-collar occupations in this geography, and 41 .56% are employed in blue-collar occupations . In 2014, unemployment in this area is 11 .29% . In 2000, the average time traveled to work was 28 .1 minutes .

PopulationIn 2014, the population in your selected geography is 30,859 . The population has changed by 5 .92% since 2000 . It is estimated that the population in your area will be 31,577 five years from now, which represents a change of 2.32% from the current year . The current population is 48 .18% male and 51 .81% female . The median age of the population in your area is 46 .3, compare this to the Entire US average which is 37 .3 . The population density in your area is 392 .44 people per square mile .

Households There are currently 12,552 households in your selected geography . The number of households has changed by 6 .99% since 2000 . It is estimated that the number of households in your area will be 12,939 five years from now, which represents a change of 3 .08% from the current year . The average household size in your area is 2 .40 persons .

Income n 2014, the median household income for your selected geography is $51,208, compare this to the Entire US average which is currently $51,972 . The median household income for your area has changed by 22 .97% since 2000 . It is estimated that the median household income in your area will be $57,041 five years from now, which represents a change of 11 .39% from the current year .

The current year per capita income in your area is $29,006, compare this to the Entire US average, which is $28,599 . The current year average household income in your area is $70,200, compare this to the Entire US average which is $74,533 .

Geography: 5 Miles

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Joshua JohnsonAssociatePALO ALTOTel: (650) 391-1784Fax: (650) [email protected] License: CA 01930127

Kirk Trammell Senior Vice President InvestmentsDirector, National Retail Group PALO ALTOTel: 650-391-1809 Fax: [email protected] License: CA 01038657

David Cutler AssociatePALO ALTOTel: (650) 391-1753Fax: (650) [email protected] License: CA 01514751

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