**PRICE REDUCTION** ~INVESTMENT OFFERING~

Transcription

1 **PRICE REDUCTION** ~INVESTMENT OFFERING~ 2695 N. Fowler Avenue, Fresno, CA New Offering Price: $4,250,000 Russell G. Smith, Inc. For Further Information, Please Contact: Garry Owens BRE#: Justin Tancredi BRE#: Carol Street BRE#: (559) North Palm Avenue, Suite 300 Fresno, CA We assume the information contained herein to be correct. It is obtained from sources which we regard as reliable, but we assume no liability for errors or omissions - 1 -

2 DISCLAIMER This brochure has been prepared to provide preliminary information to assist a prospective purchaser in determining if it wishes to proceed with an in depth investigation of the property. This brochure does not purport to present all material regarding the subject property and should not be considered as a replacement for a thorough investigation. This brochure is subject to errors, omissions, changes or withdrawal without notice and does not constitute a recommendation or endorsement as to the value of the property. Financial projections are provided as a reference and are based on assumptions proposed by their sources. Prospective purchasers should review the documents at their own risk and conduct a thorough due diligence to verify and/or validate the assumptions. The information in this brochure has been obtained from sources we believe to be reliable; however Russell G. Smith, Inc. has not conducted any investigation regarding these matters and makes no warranty, expressed or implied, as to the accuracy or completeness of this brochure or any of its contents

3 SALIENT FEATURES Beautiful office/warehouse project located in the Fresno Enterprise Zone Fully leased, NNN (Triple Net) building Excellent visibility and exposure on Fowler Ave. Convenient access to Highway 180 at Fowler Avenue exit Abundant parking approx. 4.1 stalls per 1,000 sf High quality tenant improvements include: Ten (10) foot ceilings Eight (8) foot solid core doors Parabolic lighting fixtures Private interior restrooms If desired, Russell G. Smith Inc., a principal in the property who developed, built and handled management and leasing since inception, is available to continue leasing and management services to ensure continuity and a seamless change of ownership

4 CONTENTS Page Salient Features.. 3 Photos Property Description. 7-8 Executive Summary 9 Financial Structure Loan Information Tenant Rent Roll Floor Plans Site Plan Aerials/ Maps

5 West End East End - 5 -

6 Interior Reception Suite 110 Warehouse Photos Suite

7 PROPERTY DESCRIPTION Location Located right at the eastern gateway to the Airways East Business Park, 2695 N. Fowler Ave. is a well-maintained office/warehouse project on the southwest corner of N. Fowler and East Princeton Avenues, Fresno, CA, Census Tract and A.P.N. s Size and Shape C.T.: A.P.N.: The lot is rectangular in shape and has frontage on both Fowler and Princeton Avenues. The lot is comprised of one parcel totaling approximately 2.32 acres. Off-Site Improvements Streets Off-Site improvements consist of street lights, concrete curbs, gutters, sidewalks and service walks. The property has frontage along North Fowler Ave. and East Princeton Ave. North Fowler Avenue is a divided four-lane arterial and East Princeton is a two-lane street west of Fowler Ave. All streets are asphalt paved and city maintained. Access and Exposure The site is located at the eastern entrance of the Airways East Business Park. It has excellent exposure and identity from Fowler Avenue as well as Princeton Avenue. There are two primary entrances on Princeton Ave. (one shared with the adjacent parcel) and one gated entrance on Fowler Ave. Convenient access to Highway 180 is available from the Fowler Ave. exit, which is approximately 1 mile from the project. Highway 180 connects to all major freeways, including both the 41 and 99 Freeways as well as Highway 168. Foundation and Flooring The building has a reinforced perimeter concrete foundation with 6-inch thick concrete slab flooring over 4-inch compacted road base. Building Shell Roof The building shell was constructed with concrete tilt-up walls and reinforced concrete foundations with concrete slab flooring. The free-span design of the building eliminates all interior columns which allows for optimal square footage utilization and unobstructed navigation in the warehouse areas. The roof is a foam system with an acrylic coating to help effect a water tight roof along with insulation efficiency

8 Interior Finishes HVAC The building is divided into several tenant office/warehouse spaces. The property is fully leased and is comprised of approximately 11,973 square feet of office space and approximately 17,787 square feet of warehouse space. The office floor plans primarily consist of main entry areas with individual lobbies for each tenant, open clerical areas and private offices around the perimeter of the building. The floor plans also include restrooms for each tenant, lunch rooms, storage areas and conference rooms. There is a shared common area restroom between Suite 108 and Suite 110. The interior finishes consist of a combination of resilient floor coverings and wall-to-wall carpeting over concrete slab flooring. The interior demising walls are taped, textured and painted sheetrock and the ceilings are suspended 2 x4 acoustical ceiling systems with flushmounted fluorescent fixtures. The ceilings are suspended to a height of ten feet. The interior doors are 8 foot solid core wood doors in most cases. The lunch rooms have vinyl floor coverings, plumbing, upper and lower cabinets and counter tops with plastic laminate finish. The building is heated and cooled by six (6) dual-pack refrigeration and forced-air heating units. There are thermostats installed in each tenant s space for zoned temperature control. In accordance with Title 24 requirements, the warehouses are not heated or cooled. Fire Protection Signage The building is fitted with a wet pipe fire sprinkler system for maximum fire protection. The building allows for tenant signage on the building fascia above each tenant s entry door. Environmental Conditions: Zoning Flood Zone There are no known environmental issues on the property. The site is zoned M-1/UGM. This is a light manufacturing zone district as set forth by the City of Fresno. The UGM designation indicates that the property is in an Urban Growth Management area. Zone X which is not considered to be a designated flood hazard area. Building Coverage 29.4% Parking Ratio There are 123 parking space on the improved site, which equates to a parking ratio of 4.13 stalls per 1,000 square feet of gross building area

9 EXECUTIVE SUMMARY Offering Price: $4,250,000 Gross Square Feet: 29,760 Square Feet Price Per Gross Square Foot: $ Projected Net Operating Income: $278,011 Capitalization Rate: 6.61% Year Constructed: 2007 Land Area: 2.32 Acres Parking: 4.1 stalls per 1,000 Construction: Single story, concrete tilt up Assessor s Parcel Number: Address: Zoning: Utilities: 2695 N. Fowler Ave. Fresno, CA M1 Water City of Fresno Sewer City of Fresno Trash City of Fresno Police & Fire City of Fresno Electrical and Natural Gas PG&E Phone/TV/Internet Comcast & AT&T - 9 -

10 FINANCIAL STRUCTURE ANNUALIZED GROSS INCOME: Estimated Gross Income (2018): $304,125 Less: Vacancy Allowance (5%) ($15,206) (*No actual vacancy today) Adjusted Gross Operating Income: $ 288,919 PROJECTED OPERATING EXPENSES: Property Taxes (1.196% x $4,250,000) $ 53,820 Insurance $ 3,892 Utilities (Gas, Electric, Water, Sewer, Trash) $ 13,856 Landscaping Maintenance $ 9,630 Janitorial Services $ 1,800 Supplies $ 600 Management Fee (3%) $ 10,112 Repairs & Maintenance $ 4,933 Other/Miscellaneous $ 3,000 Reserves $ 2,976 Total: $101,629 Less: Recovered Tenant NNN fees (estimated) ($ 93,711) Unrecovered Operating Expenses ($ 7,918) PROJECTED NET OPERATING INCOME: $ 281,001 CAP RATE: 6.61%

11 LOAN TERMS Standard Insurance Company (must be assumed) The loan on the property is held by the Standard Insurance Company (The Standard) and must be assumed. It is a fully amortizing loan with a current interest rate of 4.5% that readjusts every 7 years. The last readjustment occurred in October 2015 and will continue through September 30, A complete amortization schedule is provided on Page 12 and further information is available upon request. Down Payment (estimated) $2,100,000 Loan Amount (estimated) $2,150,000 Loan to Value (estimated) 50.5% Current Interest Rate 4.5% Remaining Amortization (estimated) years Remaining Term (estimated) Approx. Assumption Fee (1% of the loan amount) years $21,500 Current Monthly Payment $13,661 Annual Debt Service $163,932 LEVERAGED INVESTMENT SUMMARY Initial Cash Investment (approx.) $2,100,000 Initial Annual Cash Flow After Debt Service $114,079 Initial Cash on Cash Return 5.43%

12 Amortization Schedule June 1, 2018 September 30,

13 Tenant Rent Roll Suite Tenant Size Lease Start Current Monthly Rent (NNN) (1) 101 (2) 106 Motivational Systems Highlands Diversified Inc. 10,530 sf 10/1/07 $9, per month 9,210 sf 1/15/18 $6, per month (3) 108 Infinity Energy Inc. 6,590 sf 5/15/16 $5, per month (4) 110 PBC Solution One (d.b.a. Commercial Cleaning Systems) 3,910 sf 1/1/12 $4, per month *All leases are NNN leases. In addition to Base Monthly Rent, tenants make monthly payments of their estimated pro rata share of NNN operating expenses (Monthly Prepaid Expenses). Unless noted otherwise, Tenants pay their share of any operating expenses in excess of their Monthly Prepaid Expenses on an annual basis. *Tenants pay for their own janitorial services and utilities, which are separately metered. (1) Motivational Systems is comprised of approx. 5,208 sq. ft. of office space and 5,322 sq. ft. of warehouse space. They pay an additional $.25/sf per month ($2,632.50) for their estimated share of NNN charges and recently signed a five year lease extension. (2) Highlands Diversified is comprised of approx. 1,665 sq. ft. of office space and 7,545 sq. ft. of warehouse space. They pay an additional $.20/sf per month ($1,842.00) for their estimated share of NNN charges. The space was recently remodeled at Tenant s expense and the lease provides for an annual reimbursement payment made by Landlord to Tenant. The lease has a one-time right to terminate at the end of thirty-six (36) months (1/14/21) and an ongoing right to terminate which is only exercisable in the event that Tenant loses specific funding or specific contractual agreements (see lease for further details). (3) Infinity Energy is comprised of approx. 3,070 sq. ft. of office space and 3,520 sq. ft. of warehouse space. There is a list of furniture included as part of the lease which is owned by Landlord and shall be retained by Landlord when Tenant vacates the Premises. (4) PBC Solution One, commonly known as CCS (Commercial Cleaning Systems) is comprised of approx. 2,510 sq. ft. of office space and 1,400 sq. ft. of warehouse space. They have a large, gated parking area which is secured by electronic gates to maximize security of both vehicles and equipment. Their current NNN s are fixed at $ per month ($.18/sf)

14 Tenant Synopses Established in 1975, Motivational Systems is a graphic design company based in San Diego, CA. This dynamic company boasts seven (7) locations throughout the Western United States and serve customers nationwide, specializing in all kinds of sign manufacturing, design and installation. They have been a tenant in the building since Highlands Diversified is a commercial and residential construction company based in Fresno, CA. In partnership with the Alvarado Group, a long standing Fresno contractor, Highlands specializes in many fields of construction, placing their main focus on energy efficiency and conservation. Services including solar installation, light retrofits, building weatherization, and more. Infinity energy is a solar company based in Rocklin, CA. With five (5) locations throughout California, they have established themselves as a strong player in the solar market. Infinity prides themselves on providing customers with a full-service experience to help simplify the solar installation process. Commercial Cleaning Systems is a quality-oriented commercial property janitorial company founded in Denver, CO in Over the past 30 years, they have expanded their footprint throughout the western United States and are now one of the largest privately held janitorial services companies in the United States

15 Floor Plan Suite 101 Approx. 10,530 Square Feet

16 Floor Plan Suite 106 Approx. 9,210 Square Feet

17 Floor Plan Suite 108 Approx. 6,590 Square Feet

18 Floor Plan Suite 110 Approx. 3,910 Square Feet

19 Site Plan

20 Aerial View

21 Map View