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Josh BallesterosInvestment Advisor O: (415) 480-0214 M: (209) [email protected] CA BRE #02010271
FOR SALEGROCERY SHADOW ANCHORED RETAIL CENTER
Confidential Offering Memorandum
Mary Alam, MBAVice President O: (415) 358-2111 M: (415) [email protected] CA BRE #01927340
1740-1796 & 1744-1760 TUOLUMNE STREETVALLEJO, CA
REDWOOD SHOPPING CENTER
Page 03
Page 04
Page 08
Page 12
Page 21
Page 26
Confidentiality & Disclosure
Agreement
Section 1
The Offering
Section 2
Financial Analysis
Section 3
Location Information
Section 4
Rent Comparables
Section 5
Demographics
Table of Contents
The information contained in the following Investment Summary is proprietary and strictly confidential. It is intended to be reviewed only by
the party receiving it from NAI Northern California Investment Real Estate Brokerage and should not be made available to any other person
or entity without the written consent of Broker. This Investment Summary 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. Broker has not made any investigation, and makes no warranty or represen-
tation, 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 improvements thereon, or the financial condition or business
prospects of any tenant, or any tenant’s plans or intentions to continue occupancy of the subject property.
The information contained in the Marketing Brochure has been obtained from sources we believe to be reliable; however, Broker has not
verified, and will not verify, any of the information contained herein, nor has Broker conducted any investigation regarding these matters
and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential
purchasers must take appropriate measures to verify all of the information set forth herein.
Confidentiality & Disclosure Agreement
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1THE OFFERING
REDWOOD SHOPPING CENTER
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1 PROPERTY INFORMATION
ExecutiveSummary
Property Details
Sale Price $8,900,000
Price per SF $381 2018 NOI* $557,279
Cap Rate 6.26%
Occupancy Rate 85%
Building Size 23,347 SF
Lot Size 2.01 AC
Year Built 2005
APN 0053-200-950, 0053-200-960
FoodMaxx(NOT PART OF PROPERTY)
REDWOOD SHOPPING CENTER
* Projected 2018 NOI with rent increases and leased vacancies
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1 PROPERTY INFORMATION
ExecutiveSummary
Property Highlights
• New construction built in 2005• Credit tenants include Subway, Domino’s,
Comcast etc• Stable, long term, tenants• NNN Leases• Potential for Value-Add by filling vacant
spaces and rent increases
Property Overview
• Shadow anchored by FoodMaxx grocery• Ample parking with signage• Concrete construction• 2 Buildings with a total square footage of 23,347 SF on 2.01 AC• Vallejo: Future job growth over the next ten years is predicted to be
37.62%• Vallejo ranked most diverse city in 2013, via Nerdwallet study published on
BusinessInsider.com• Average house value of $338,829 within 5 miles• Population of 157,905 within 5 miles• 0.4 miles from Highway 80 via Redwood street• 1 mile from Kaiser Permanente Vallejo Medical• 1.7 miles from Six Flags Discovery Kingdom via Fairgrounds Drive
1 PROPERTY INFORMATION
PropertyPhotos
FINANCIAL ANALYSIS
REDWOOD SHOPPING CENTER
2
2 FINANCIAL ANALYSIS
Financial
Summary Investment Overview Actual 2018 NOI
Price $8,900,000
Price per Square Footage $385
CAP Rate 6.19%
Operating Data Actual 2018
Gross Scheduled Income $601,758
Vacancy Cost (5.0%) -$30,088
Gross Operating Income $571,670
Operating Expense NNN
Leasing Commissions $13,986
Net Operating Income $557,279
Debt Service -$315,235
Pre-Tax Cash Flow $242,044 Cash-on-Cash Return % (yr 1) 6.8%
Principal Reduction (yr 1) + $12,183
Total Return (yr 1) $254,227
Return on investment % 7.1%
Financing Data Actual Loan Amount $5,340,000
LTV 60%
Interest Rate 4.25%
Debt Service $315,235 Debt Service Monthly $26,270
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2 FINANCIAL ANALYSIS
Valuation
Analysis Income & Expenses Projected 2018 NOI* Revenues $600,138
Current Expense Reimbursement $96,457
Expected Increase in NNN Reimbursements $80,913
Total Income $777,508 Expenses
Management Fee $3,864
SMS Management Company $32,202 (Landscaping, sweeping, parking lot, hauling, irrigation) Insurance $10,929
Utilities $25,630 (Water, electrical, gas, garbage, fire monitoring, sewer) Repairs $3,908
Property Taxes (1.133%) $100,837
Total Property Expenses $177,370 Net Income
Net Income $600,138
Valuation Analysis Net Operating Income $600,138
Vacancy Rate (5%) $30,007
Leasing Commissions (2 spaces) $12,852 NOI $557,279 Blended Cap Rate 6.26%
Value $8,900,000
*Includes proforma rent for the vacant spaces and scheduled rent increases in 2018
2 FINANCIAL ANALYSIS
Rent RollSummary
Number of leasable spaces 14
Cell tower Cingular Wireless
Tenant names Agency Cleaners, Comcast, Domino’s Pizza, Farmer's Insurance, Goin Postal, Kenny Salon, Dentist, Lea Pannell Real Estate, Royal Jelly Donuts, Travis Credit Union, Peking Express,Subway
Rent PSF range $1.58 - $2.50
Rent increases Variable
Earliest lease expiration 7/10/18
Latest lease expiration 2/28/2026
Options Yes
Lease type NNN
Space sizes 900 SF - 2,567 SF
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LOCATION INFORMATION
REDWOOD SHOPPING CENTER
3
3 LOCATION INFORMATION
Spotlight onCity of VallejoVallejo is a waterfront port city in Solano County, California, located in the North Bay region of the San Francisco Bay Area. The population was 115,942 at the 2010 census. It is the tenth most populous city in the San Francisco Bay Area, and the largest in Solano County. Vallejo sits on the northeastern shore of San Pablo Bay, 30 miles north of San Francisco. The colleges and universities in Vallejo are California Maritime Academy, the Vallejo Center campus of Solano Community College, and Touro University California. Ferry service runs from a terminal on Mare Island Strait to San Francisco, through the BayLink division of SolTrans.
The city of Vallejo is located 30 miles northeast of San Francisco, 22 miles north of Oakland, 56 miles north of San Jose and 52 miles south of Sacra-mento. Vallejo borders the city of Benicia to the east, American Canyon and the Napa county line to the north, the Carquinez Strait to the south and the San Pablo Bay to the west.
The 2010 United States Census reported Vallejo’s population density at 2,340.3 people per square mile. The racial makeup of Vallejo was 38,066 (32.9%) White, 25,572 (22.1%) African American, 757 (0.7%) Native American, 28,895 (24.9%) Asian (21.1% Filipino, 1.0% Indian, 0.9% Chinese, 0.5% Vietnamese, 0.2%Japanese, 0.2% Korean, 0.1% Laotian), 1,239 (1.1%) Pacific Islander, 12,759 (11.0%) from other races, and 8,656 (7.5%) from two or more races. Hispanic or Latino of any race were 26,165 persons (22.6%). Non-Hispanic Whites numbered 28,946 persons (25.0%).
Vallejo ranked the nation’s most ethnically diverse city in 2013 via a study by Nerdwallet published on BusinessInsider.com Vallejo’s overall job growth during the recent period of economic recovery has kept pace with the Bay Area, both growing 14 percent since 2009. This is a strong and positive indicator of Vallejo’s underlying economic foundation. Vallejo has relatively large employment concentrations in Health Care, Construction, Arts/Enter-tainment, and Retail. These dominant sectors suggest that Vallejo offers competitive advantages to these types of companies, and may provide a strong foundation for further expansion. Vallejo will have market demand for roughly 5,000 to 6,000 housing units over the next 25 years, based on growth forecasts.
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3 LOCATION INFORMATION
RegionalMap
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REDWOOD SHOPPING CENTER
VALLEJO
CROCKETT
SAN RAFAEL
AMERICANCANYON
RICHMOND
MARTINEZ
CONCORD
San Pablo Bay
Grizzly Bay
BENECIA
3 LOCATION INFORMATION
RetailMaps
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SUBJECT PROPERTY:
REDWOOD SHOPPING CENTER
VALLEJO
KAISER PERMANENTE VALLEJO MEDICAL CENTER
LAKE CHABOT
DAN FOLEYPARK
TU
OLU
MN
E S
TR
EE
T
GATEWAY PLAZA
VALLEJOPLAZA
VALLEJOCORNERS
REDWOODPLAZA
3 LOCATION INFORMATION
SalesComps
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Sales ComparablesComps
606-622 1ST ST606-622 1st St | Napa, CA 94559
$11,726,615Sale Price: 0.46 ACLot Size:
2008Year Built: 20,233 SFBuilding SF:
$579.58Price PSF: 08/13/2015Closed:
1
1
1530 FITZGERALD DR1530 Fitzgerald Dr | Pinole, CA 94564
$21,200,000Sale Price: 5.29 ACLot Size:
1981Year Built: 58,318 SFBuilding SF:
$363.52Price PSF: 05/08/2015Closed:
2
2
GREEN VALLEY RANCH4455 Central Way | Fairfield, CA 94534
$3,423,000Sale Price: 0.73 ACLot Size:
2009Year Built: 6,240 SFBuilding SF:
$548.56Price PSF: 5%CAP:
06/02/2017Closed:
3
3
3 LOCATION INFORMATION
3 LOCATION INFORMATION
SalesComps
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Sales ComparablesComps
MOESER SQUARE10544-10598 San Pablo Ave | El Cerrito, CA 94530
$6,050,000Sale Price: 1.39 ACLot Size:
1965Year Built: 19,442 SFBuilding SF:
$311.18Price PSF: 04/03/2015Closed:
4
4
VALLEJO PLAZA3445 Sonoma Blvd | Vallejo, CA 94590
$4,700,000Sale Price: 0.75 ACLot Size:
1970Year Built: 10,384 SFBuilding SF:
$452.62Price PSF: 4.5%CAP:
02/13/2015Closed:
5
5
193 SUNSET AVE193 Sunset Ave | Suisun City, CA 94585
$3,000,000Sale Price: 0.88 ACLot Size:
2005Year Built: 6,580 SFBuilding SF:
$455.93Price PSF: 5.3%CAP:
11/13/2015Closed:
6
6
3 LOCATION INFORMATION
3 LOCATION INFORMATION
SalesComps
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Sales ComparablesComps
FAIRFIELD CENTER1200 Oliver Rd | Fairfield, CA 94534
$2,995,700Sale Price: 38768 ACLot Size:
2008Year Built: 4,511 SFBuilding SF:
$664.09Price PSF: 5.3%CAP:
05/04/2016Closed:
7
7
3 LOCATION INFORMATION
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3 LOCATION INFORMATION3 LOCATION INFORMATION
Sales ComparablesSales Comps
SummarySummary Subject Property Price Bldg. SF Price/SF CAP # Of Units
Redwood Shopping Center 1740 Tuolumne Street $8.900,000 23,347 SF $381 6.26% - Vallejo, CA 94589
Sale Comps Price Bldg. SF Price/SF CAP # Of Units Close
606-622 1st St 1 Napa, CA $11,726,615 20,233 SF $579.58 - - 08/13/2015 94559
1530 Fitzgerald Dr 2 Pinole, CA $21,200,000 58,318 SF $363.52 - - 05/08/2015 94564
Green Valley Ranch 3 4455 Central Way $3,423,000 6,240 SF $548.56 5.00% - 06/02/2017 Fair ield, CA 94534
Moeser Square 4 10544-10598 San Pablo Ave $6,050,000 19,442 SF $311.18 - - 04/03/2015 El Cerrito, CA 94530
Vallejo Plaza 5 3445 Sonoma Blvd $4,700,000 10,384 SF $452.62 4.50% - 02/13/2015 Vallejo, CA 94590
193 Sunset Ave 6 Suisun City, CA $3,000,000 6,580 SF $455.93 5.30% - 11/13/2015 94585
Fair ield Center 7 1200 Oliver Rd $2,995,700 4,511 SF $664.09 5.30% - 05/04/2016 Fair ield, CA 94534
Totals/Averages Price Bldg SF Price/SF CAP # Of Units Close $7,585,045 17,958 SF $422.38 5.03% -
3 LOCATION INFORMATION
Sales CompsMap
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1740 Tuolumne Street | Vallejo, CA 94589SUBJECT PROPERTY
Sales ComparablesMap
1
606-622 1st StNapa, CA 94559
2
1530 Fitzgerald DrPinole, CA 94564
3
4455 Central WayFairfield, CA 94534
GREEN VALLEY RANCH
4
10544-10598 San Pablo AveEl Cerrito, CA 94530
MOESER SQUARE
5
3445 Sonoma BlvdVallejo, CA 94590
VALLEJO PLAZA
6
193 Sunset AveSuisun City, CA 94585
7
1200 Oliver RdFairfield, CA 94534
FAIRFIELD CENTER
3 LOCATION INFORMATION
RENT COMPARABLES
REDWOOD SHOPPING CENTER
4
4 RENT COMPARABLES
RentComps
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6040 MAIN ST6040 Main St | American Canyon, CA 94503
$36.00 SF/YRLease Rate: NNNLease Type:
1,500 SFSpace Size: 2006Year Built:
11,205 SFBldg Size:
1
1
5201 SONOMA BLVD5201 Sonoma Blvd | Vallejo, CA 94589
$24.00 SF/YRLease Rate: NNNLease Type:
1,045 SFSpace Size: 1977Year Built:
10,800 SFBldg Size: 12 monthsLease Term:
2
2
5201 SONOMA BLVD5201 Sonoma Blvd | Vallejo, CA 94589
$22.80 SF/YRLease Rate: NNNLease Type:
1,407 SFSpace Size: 1977Year Built:
10,800 SFBldg Size: 36 monthsLease Term:
3
3
RentComps
4 RENT COMPARABLES
4 RENT COMPARABLES
RentComps
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2035-2045 SPRINGS RD2035-2045 Springs Rd | Vallejo, CA 94591
$24.00 SF/YRLease Rate: NNNLease Type:
1,500 SFSpace Size: 5,871 SFBldg Size:
36 monthsLease Term:
4
4
Leased by Cricket Wireless
2001-2017 SOLANO AVE2001-2017 Solano Ave | Vallejo, CA 94590
$24.00 SF/YRLease Rate: NNNLease Type:
1,400 SFSpace Size: 1968Year Built:
85,045 SFBldg Size: 60 monthsLease Term:
5
5
Leased by Orchard Nails & Spa
742-758 ADMIRAL CALLAGHAN LN742-758 Admiral Callaghan Ln | Vallejo, CA 94591
$27.00 SF/YRLease Rate: NNNLease Type:
3,750 SFSpace Size: 1982Year Built:
13,988 SFBldg Size:
6
6
Leased by Fed-Ex/Kinkos
RentComps
4 RENT COMPARABLES
4 RENT COMPARABLES
Rent CompsSummary
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Rent Comps Price/SF/Year Available SF Bldg SF # Of Units Occupancy %
16040 Main St
American Canyon, CA94503
$36.00 1,500 SF 11,205 SF - -
25201 Sonoma Blvd
Vallejo, CA94589
$24.00 1,045 SF 10,800 SF - -
35201 Sonoma Blvd
Vallejo, CA94589
$22.80 1,407 SF 10,800 SF - -
42035-2045 Springs Rd
Vallejo, CA94591
$24.00 1,500 SF 5,871 SF - -
52001-2017 Solano Ave
Vallejo, CA94590
$24.00 1,400 SF 85,045 SF - -
6742-758 Admiral Callaghan Ln
Vallejo, CA94591
$27.00 3,750 SF 13,988 SF - -
Totals/Averages Price/SF/Year Available SF Bldg SF # Of Units Occupancy %$26.30 1,767 SF 22,952 SF 0 0%
4 RENT COMPARABLES
Rent CompsSummary
4 RENT COMPARABLES
Rent CompsMap
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1740 Tuolumne Street | Vallejo, CA 94589SUBJECT PROPERTY
31
1 6040 Main StAmerican Canyon, CA 94503
2 5201 Sonoma BlvdVallejo, CA 94589
3 5201 Sonoma BlvdVallejo, CA 94589
4 2035-2045 Springs RdVallejo, CA 94591
5 2001-2017 Solano AveVallejo, CA 94590
6 742-758 Admiral Callaghan LnVallejo, CA 94591
4 RENT COMPARABLES
MapRent Comps
DEMOGRAPHICS
REDWOOD SHOPPING CENTER
5
5 DEMOGRAPHICS
DemographicsMap
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* Demographic data derived from 2010 US Census
33
Population 1 Mile 2 Miles 5 Miles
TOTAL POPULATION 17,272 68,429 157,905
MEDIAN AGE 39.7 36.7 38.70
MEDIAN AGE (MALE) 37.4 34.4 34.5
MEDIAN AGE (FEMALE) 41.8 39.1 38.6
Demographics
Households & Income 1 Mile 2 Miles 5 Miles
TOTAL HOUSEHOLDS 6,505 24,113 54,471
# OF PERSONS PER HH 2.7 2.8 2.9
AVERAGE HH INCOME $73,314 $68,547 $65,476
AVERAGE HOUSE VALUE $409,289 $373,049 $338,829
Map
Ethnicity 1 Mile 2 Miles 3 Miles
% HISPANIC 20.3% 24.1% 24.8%
Race 1 Mile 2 Miles 3 Miles
% WHITE 51.9% 39.7% 40.1%
% BLACK 17.4% 23.9% 22.9%
% ASIAN 19.3% 22.5% 24.0%
% HAWAIIAN 1.2% 1.2% 1.1%
% INDIAN 1.2% 0.7% 0.7%
% OTHER 10.3% 13.3% 12.4%
5 DEMOGRAPHICS
Josh BallesterosInvestment Advisor O: (415) 480-0214 M: (209) [email protected] CA BRE #02010271
Mary Alam, MBAVice President O: (415) 358-2111 M: (415) [email protected] CA BRE #01927340
101 CALIFORNIA STREET, SUITE 850, SAN FRANCISCO, CA 94111 • WWW.NAINORCAL.COM
CONTACTS