The Gateway Plaza - LoopNet...Taqueria Guerrero 1,490 Restaurant $2,300 $536 $2,836 TKM Home Sales 1,020 SF Real Estate $1,581 $367 $1,948 Drangon Palace 4,473 SF Restaurant $5,636

Tai Martin+1 805 595 [email protected]. No. 01114741

Steve Golis+1 805 879 [email protected]. No. 00772218

Offering MemorandumFor Sale | Retail/Office

The Gateway Plaza

West Grand Avenue | Grover Beach, CA1800

The Gateway Plaza1800 Grand Avenue | Grover Beach, CA

Pro Forma Cap: 8.04% Pro Forma NOI: $379,811

The Gateway Plaza stands proudly on the corner at E

Grand Ave. (23,486 AADT) and S. Oak Park Blvd. (13,903

AADT), welcoming homesteaders and visitors alike to the

coastal community of Grover Beach.

This bright, L-shaped plaza disperses visibility to all tenants

of the center, while a quaint-yet-eyecatching coffeeshop

is perched at the intersection itself, luring passerbys in

with convenience and intrigue. With ample parking and

a lively, mixed-contemporary design. Gateway Plaza is

designed to execute it’s own marketing work, making is a

highly favorable location for customers and tenants alike.NOW OFFERED AT:

$4,725,000

OAK PARK BLVD - 13,903 AADT

GRAND AVE - 23,486 AADT

1FOR SALE The Gateway Plaza | 1800 Grande Avenue, Grover Beach CA

#of Units: 13 Retail/Office

Price: $4,725,000

Price/SF: $197 PSF

Current NOI: $181,919

APN: 060-309-010

Lot Size: +/-57,935 SF

Building Size: +/-23,959 SF

Built: 1997

Cap Rate:

Current 4.69%

Pro Forma 8.04%

Property Details

Tenant Roster

FOR SALE The Gateway Plaza | 1800 Grande Avenue, Grover Beach CA

UNIT TENANT SUITE SF % OF PLAZA PROFORMA ACTUAL RENT PSF LEASE TYPE

NNN AMOUNT

MONTHLY PAYMENT

LEASE START DATE ESCALATIONS OPTIONS

ABC Dragon Palace 4,473 SF 18.7% $5,636 $5,636 $1.26 PSF NNN $1,610 $7,246 12.1.2011 Annual Fixed 3-4% N/A

D J Nails & Spa 1,500 SF 6.3% $1,200 $1,210 $1.40 PSF NNN $540 $1,750 5.1.2015 Bi-Annual Fixed 6-7% 5 Year Option

C TKM Home Sales 1,020 SF 4.3 $1,581 $1,581 $1.55 PSF NNN $367 $1,948 7.31.2015 Annual Fixed +3% N/A

F Discount Cigarettes 1,500 SF 6.3% $2,250 $2,250 $1.50/ PSF NNN $540 $2,790 6.23.2000 Annual Fixed 3-4% N/A

G Vacant 1,500 SF 6.3% $1,875 - $1.25 PSF NNN - - - - -

HI Vacant 2,200 SF 9.2% $1,980 - $0.90 PSF NNN - - - - -

JK Vacant 2,000 SF 833% $1,800 - $0.90 PSF NNN - - - - -

L Storage/Office - - - - - - - - - - -

M Taqueria Guerro 1,490 SF 6.2% $2,300 $2,300 $1.54 PSF NNN $534 $2,834 4.3.2000 Annual Fixed 3-4% 5 Year Option

N Doughboys 1,044 SF 4.4% $1,409 $1,409 $1.35 PSF NNN $346 $1,755 3.29.2002 Annual Fixed 3-4% N/A

O Edward Jones 1,824 SF 7.6% $2,517 $2,517 $1.38 PSF NNN $657 $3,174 11.1.2008 Annual Fixed 3-4% N/A

P Vacant 2,000 SF 8.3% $3,000 - $1.50 PSF NNN - - - -

QR 7-Eleven, Inc $2,958 SF $12.3% $8,135 $8,948 $3.03 PSF NNN $1,065 $10,013 6.9.2011 10% Every 5 Years N/A

S Crossroads Cafe 450 1.9% $1,215 $1,215 $2.70 PSF NNN $162 7.1.2012 Bi-Annual Fixed 3-4% N/A

TOTALS: 23,959 SF $35,798 $27,956 $34,832

A B

C

D E

F G H I J

K

L M

N O

P Q

S

R

Current Tenant Layout

Corner Monument Sign

2

Breezeway

1800 Grande Avenue | Grover Beach, CA


TENANT SUITE SIZE BUSINESS LEASE PER MO. NNN @ $0.36 PSF

GROSS INCOME

Formerly Dentist 1,500 SF Health Service $1,875 $540* $2,415

Formerly Mattress 2,200 SF Retail $1,980 $792* $2,771

Formerly H&R Block 2,000 SF Service $1,800 $720* $2,520

Formerly Goodwill 2,000 SF Retail $3,000 $720* $3,720

J Nails & Spa 1,500 SF Nail Salon $2,100 $540 $2,640

Crossroads Cafe 450 SF Coffee $1,215 $162 $1,377

Discount Cigarettes 1,500 SF Cigarettes $2,250 $540 $2,836

Doughboys 1,044 SF Pizza $1,409 $376 $1,785

Edward Jones 1,824 SF Services $2,517 $657 $3,174

Taqueria Guerrero 1,490 Restaurant $2,300 $536 $2,836

TKM Home Sales 1,020 SF Real Estate $1,581 $367 $1,948

Drangon Palace 4,473 SF Restaurant $5,636 $1,610 $7,246

7-Eleven, Inc. 2,958 SF Sundries $8,135 $1,065 $9,199

Current Monthly Lease Income: $27,143

Current Monthly CAM Fees: $5,853

Current Gross Monthly Income: $32,996

Current Effective Gross Economic Income: $395,950

Projected Monthly Lease Income: $35,798

Proforma Monthly CAM Fees @ $.55 PSF: $13,177

Projected Gross Monthly Income: $48,975

Effective Gross Economic Income: $587,700

*current and projected monthly lease rates using historical rates

3

Executive Summary

#of Units: 13 Retail/OfficePrice: $4,725,000

Price/SF: $197 PSFCurrent NOI: $221,821

CURRENT CAP: 4.69%

APN: 060-309-010

Lot Size: 57,935 SF

Building Size: 23,959 SF

FINANCIALS

Annual ExpensesExpense Pro Forma % GOI

Real Estate Taxes 1.170% $55,283 9.41%Bank Service Charges: Est. $1,050 0.18%Advertising: Est. $2,505 0.43%Insurance: Est. $17,773 3.02%Utilities: (Gas, Water, Electric) Est. $39,922 6.79%Telephone: Est. $6,905 1.17%Property Alarm: Est. $693 0.12%Office Expense: Est. $857 0.15%Management Fees: Est. $12,300 2.09%Maintenance & Repairs: Est. $36,466 6.20%Legal & Accounting Est. $34,135 5.81%

Total Annual Expenses: $207,889 35.4%

Current Pro Forma

GOI: $395,950 $587,700

Annual Exp: $174,138 $207,889

NOI: $221,812 $379,811

CAP Rate: 4.69% 8.04%

Calculations:

PRO FORMA

1800 Grande Avenue | Grover Beach, CA


4

Atascadero

S

1

2

3

San Luis Obispo & Five Cities

5

6

7

Sale Comparables

COMP. PROPERTY ADDRESS DATE OF SALE SALE PRICE # UNITS LOT SIZE

(ACRES) BUILDING

SF PRICE PSF CAP RATE

SGateway Plaza 1800 Grand Ave. Grover Beach, CA

Subject $5,250,000 13 1.33 ±23,959 SF $209/SF 4.69%

1Tenwise Park 3536-3546 S. Higuera St. San Luis Obispo, CA

Active $6,000,000 6 3.98 25,454 SF $236/SF 5.42%

2

Arroyo Town & Country Center 1464 E. Grand Ave. Grover Beach, CA

9/18/2017 $8,020,000 15 2.81 23,609 SF $340/SF

3Marigold Center 3940-3960 Broad St. San Luis Obispo, CA

7/11/2017 $43,550,000 9 2.47 174,428 SF $250/SF 5.76%

4The Adobe Plaza 7305-7385 El Caino Real Atascadero, CA

Active $7,100,000 5 3.65 38,599 SF $184/SF 6.17%

5 618-324 E. Grand Ave. Grover Beach, CA 4,600 SF $1,490,000 6 0.36 5,808 SF $257/SF 5.40%

6AG West Villiage130 W. Branch St. Arroyo Grande, CA

1,420 SF $5,380,000 8 $511 $160/SF 7.80%

7 215-295 W. Grand Ave. Grover Beach, CA 1,396 SF $2,800,000 10 0.7 $503 $311/SF 4.95%

4

FOR SALE The Gateway Plaza | 1800 Grand Avenue, Grover Beach CA [email protected] | [email protected]


Photo Gallery

5


Plaza Surgery Specialist Ctr.

Digital Medical Imaging

Arroyo Grande

COMMERCIAL CORRIDOR

OAK

PARK

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AADT

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SUBJECT

2,315 HOUSEHOLDS

HOTEL DVLPMNT.

Traffic Volume: 23,486 AADT

Z

Average Household Income (2018)

$8.86K

Projected Population Growth (2023)

48.4K

Current Population (2018)

46.6K

Total Households

$18.8K

1,287 HOUSEHOLDS

3 MI. DEMOGRAPHICS

SUBJECT

Gateway Plaza

Transit Routes & Bus Stops

Major Arteries

Public School

Amtrak Station

Annual Consumer Spending

$541.7K



$

MONARCH BUTTERFLY GROVE

OCEANO DUNES & CAMPGROUND

KEY:

6


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Grand Avenue | Grover Beach, CA1800

Offering MemorandumFor Sale | Retail/Office

The Gateway Plaza

Documents

The Gateway Plaza - LoopNet...Taqueria Guerrero 1,490 Restaurant $2,300 $536 $2,836 TKM Home Sales 1,020 SF Real Estate $1,581 $367 $1,948 Drangon Palace 4,473 SF Restaurant $5,636