12333 Saratoga Sunnyvale Road, Saratoga, CA

Transcription

1 12333 Saratoga Sunnyvale Road, Saratoga, CA Offering Memorandum Kirk McKinney Michael Passarelli BRE: BRE:

2 Table of Contents Pg. 3 ~ Disclaimer Pg. 4 ~ Executive Summary Pg. 5 ~ Property Profile Pg. 7 ~ Exterior Photos Pg. 8 ~ Owner s Suite Photo Pg. 10 ~ Zoning Pg. 11 ~ Financial Snapshot Pg. 12 ~ Building Floor Plan Pg. 13 ~ Owner s Suite Floor Plan Pg. 14 ~ Site Plan Pg. 15 ~ Parcel Map Pg. 16 ~ Street Map Pg. 17 ~ Arial Map Pg. 18 ~ Traffic Count Report Pg. 19 ~ Demographics 2

3 Disclaimer The material contained in this Offering Memorandum is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the California Partners, Inc. (CPI) Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the CPI Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Offering Memorandum. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Memorandum must be returned to the CPI Advisor. Neither the CPI Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Memorandum may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the CPI Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Offering Memorandum, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and the Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the CPI Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Memorandum are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Offering Memorandum is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to the Owner, in the Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the CPI Advisor from any liability with respect thereto. To the extent the Owner or any agent of the Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk. 3

4 Executive Summary Saratoga Sunnyvale Road Developer ~ Owner/User ~ Investor Capitalize on a rare opportunity to own a generational asset in a prime Saratoga location Saratoga Sunnyvale Road has not been on the market in decades, in an area known for low owner turnover. A developer can capitalize on a covered-land play on a full acre in a prime location with excellent demographics, while enjoying good cashflow and time to complete entitlements before the leases expire. The site is ripe for a classic mixed-use retail/residential development as it only requires a CUP, there are several mixed-use developments nearby and Saratoga is generally supportive of mixed-use developments. An owner/user can own a value-add trophy asset and occupy a beautifully appointed 2,858 sf Suite with a tasteful modern design and ultra-high-end finishes. An investor can own a value-add trophy asset with below market rents and long-term successful tenants with short terms left on their modified gross leases. Both the owner/user and the investor can add value by raising the rents to market and converting to NNN leases, as well as a potential cell tower play Saratoga Sunnyvale Road is well located, with 100 feet of street front footage on the main thoroughfare connecting Saratoga, Cupertino and west San Jose, three of the most affluent cities in the country. It is close to downtown Saratoga and Cupertino and is right off of Hwy 85 and minutes from Hwy s 9, 17, and 280. It is at the center of a high-density commercial district packed with restaurants, services, and stores Saratoga Sunnyvale Road is a very well maintained two story 13,000 square foot Retail/Office multi-tenant building on 1+ acres. Over the years, it has undergone an extensive refurbishment, including all major systems (roof, electrical, HVAC & asphalt) and has no deferred maintenance, (see Pg. 4 for details). It has monument signage, fiber connectivity, heavy power, a 2,500+/- square foot, fenced yard and is well parked at 4/1000. It has a beautifully appointed 2,858 square foot owner s unit that anchors the 1 st floor retail. It has stable, long term tenants, paying below market rents with lease expiration dates in Saratoga is an attractive residential community with a small-town vibe. Known for its high quality of life, excellent schools, and distinctive businesses, Saratoga holds a special place in the hearts of residents and visitors alike. Saratoga has a vibrant art scene and a wealth of activities available to residents and visitors, and is home to some distinctive destinations. It is filled to the brim with unique shops, fine dining and a full array of personal and professional services. The City of Saratoga also boasts some of the best schools in the nation. 4

5 Property Profile APN: Zoning: CV Zoning Ordinance Two story, multi-tenant building on one acre in the city of Saratoga, California. First story is approximately 9000 square feet with second story approximately 4000 square feet. The first story has three tenants with the ability to reasonably divide into five suites. Three prime retail locations at front with two in the rear. The two rear spaces have been improved with a retail area and large warehouse equipped with HVAC system and finished floors which is currently occupied by long term tenant ScholarWear. These rear spaces could be ideal for dance studio, incubator spaces, light R&D, or community/church gathering. Two of the three front retail spaces are occupied by Lucy s hair salon and Bodyline fitness. The owner s suite is currently vacant. Each of these spaces have two bathrooms (some are ADA). The leases are Modified Gross, with tenants paying power and phone. The second floor currently has four tenants Remodel West, Greentech Electric and Astute Realty. The second floor can be reasonably divided into five spaces. Access for second floor is two exterior & two interior staircases at rear of building. Rent paid by tenants is full service including utilities and janitorial. Tenants pay their phone/internet. To facilitate collection of CAM s, rent is figured by adding 10% to actual square footage which is disclosed in leases and evident in rent roll. Overall rents are below market. Majority of leases expire See rent roll. 5

6 Site Information ~ Parking is located in the front and rear of the building, approximately 53 spaces. A +/- 2,500 sf fenced yard is at the rear of the building which is currently being used by RemodelWest. This area could be used as is, additional parking or accessory structures, or leased to a tenant when RemodelWest vacates. A small accessory structure exists in the yard area which has conduits and power run underground from the main service panel. This used to be a pager tower so infrastructure, utilities and conduits are significant and perfect for a new cell tower use. Access to the rear lot is on north and south sides of the building. Improvements ~ Since the purchase of the property in 2000 the following improvements have been made to the site and building: The Streetscape project by the city of Saratoga included curb, gutter, sidewalks, and plantings. Installation of a monument sign. Permitted by the city of Saratoga. Replacement of the rear and side asphalt parking lot. Sealing of all parking lots. Addition of LED parking lot lighting at rear of the building. Underground conduits installed for future electric car charging stations. LED lighting around the building on both floors, including the exterior perimeter and rear parking lot Installation of security camera system. Total of nine cameras located along the perimeter of the building and on two rear parking lot light posts. NVR is located in the upstairs common area. Replacement of roof at both levels including parapet walls with 60 mil TPO system and composite shingles on sloped areas Replacement of multiple HVAC systems with upgraded energy star units in conjunction with roof replacement. Conversion of rear un-finished warehouse space to a finished space. Added HVAC system, removal of asbestos tiles and ceiling, laminate flooring, paint etc. Now occupied. Major renovation of Suite A to a modern studio. This is the prime space in the building. Market rate is anticipated at $4.25 PSF as indicated in 2019 rent roll. Conversion of Suite C (center retail frontage) to salon occupied by long standing tenant. Multiple updating of interior spaces by removal of asbestos acoustic ceilings, LED lighting, electrical upgrades, carpeting, painting etc. Recent Development ~ Immediately east on the opposite side of Saratoga Sunnyvale Road two townhome projects (on Marginy Place) were developed on similar size lots in same CV District. Aerial View. These units rapidly sold with most recent pricing north of 2M. 6

7 Exterior Photos 7

8 Owner s Suite 8

9 9

10 Zoning: C-V Visitor Commercial Zoning Ordinance (a) Permitted uses. The following permitted uses shall be allowed in any commercial district, unless a use involves the operation of a business providing direct customer service (including, but not limited to, conducting a delivery service) on-site between the hours of 1:00 A.M. and 6:00 A.M., in which event such use may be allowed upon the granting of a use permit pursuant to Article of this Chapter: C-V Permitted (1) Professional and administrative offices. (2) Financial institutions. (3) Personal service businesses. Plus General Commercial Permitted (1) Retail establishments, except restaurants, markets, delicatessens, and any establishment engaged in the sale of alcoholic beverages. (2) Home occupations, conducted in accordance with the regulations prescribed in Article of this Chapter. (3) Parking lots which comply with the standards for off-street parking facilities as set forth in Section of this Chapter. (4) Accessory structures and uses located on the same site as a permitted use. (5) Antenna facilities operated by a public utility for transmitting and receiving cellular telephone and other wireless communications subject to design review under Article (6) Markets with a floor area dedicated to food and drink sales that is less than or equal to twenty-five percent of the establishment's total floor area and two thousand square feet or less. (b) Conditional uses. The following conditional uses may be allowed in any commercial district, upon the granting of a use permit pursuant to Article of this Chapter: C-V Permitted (1) Religious and charitable institutions. (2) Mixed-use development conforming to the design standards found in Article (3) Medical offices and clinics. (4) Mortuaries. (5) Theaters. (6) Automobile upholstering shops, provided all operations are conducted within an enclosed structure. Plus General Commercial Permitted (1) Restaurants. (2) Markets with a floor area dedicated to food and drink sales that is more than twenty-five percent of the establishment's total floor area or more than two thousand square feet. (3) Any establishment engaged in the sale of alcoholic beverages, with the exception of tasting rooms, as provided for in Section (a)(3) of this Code. (4) Hotels and motels. (5) Bed and breakfast establishments. (6) Institutional facilities. (7) Community facilities. (8) Game arcades. (9) Gasoline service stations on sites abutting Saratoga/Sunnyvale Road, Saratoga/Los Gatos Road or Saratoga Avenue and accessible directly from such arterial road; provided, that all operations except the sale of gasoline and oil shall be conducted within an enclosed structure. (10) Animal establishments, as defined in Section (c) of this Code. All animal establishments shall be subject to the regulations and license provisions set forth in Section of this Code. (11) Public buildings and grounds. (12) Public utility and public service pumping stations, power stations, drainage ways and structures, storage tanks, transmission lines and cable television facilities. (13) Accessory structures and uses located on the same site as a conditional use. (14) Repealed. (15) Tobacco retailers. All tobacco retailers (as defined in Section of this Article) shall be subject to the permitting requirements and provisions set forth in Section of this Article. 10

11 Financial Snapshot Call for Details Kirk McKinney Michael Passarelli BRE: BRE:

12 Floor Plans 12

13 Owners Suite 13

14 Site Plan 14

15 Parcel Map 15

16 Street Map Saratoga Sunnyvale Rd - Saratoga, CA Information Deemed to be Reliable but not Guaranteed. Information provided as a courtesy and does not constitute implied or contractual agency or representation. Copyrighted report licensed to California Partners, Inc Page 16

17 Aerial Map Saratoga Sunnyvale Rd - Saratoga, CA Information Deemed to be Reliable but not Guaranteed. Information provided as a courtesy and does not constitute implied or contractual agency or representation. Copyrighted report licensed to California Partners, Inc Page 17

18 Traffic Count Report Saratoga Sunnyvale Rd, Saratoga, CA Building Type: Secondary: GLA: Year Built: Total Available: % Leased: Rent/SF/Yr: Mixed Use, Retail/Office Freestanding 13,000 SF ,858 SF 98% Negotiable Count Avg Daily Volume Miles from Street Cross Street Cross Str Dist Year Volume Type Subject Prop 1 Sea Gull Way Zorka Ave 0.03 E MPSI.15 2 Saratoga Sunnyvale Rd Prospect Rd 0.06 N ,250 MPSI.26 3 Prospect Rd Jamestown Ct 0.03 W ,620 MPSI.31 4 Prospect Rd Atrium Dr 0.01 E ,310 MPSI.34 5 S Saratoga Sunnyvale Rd Wardell Rd 0.03 S ,040 MPSI.39 6 S de Anza Blvd Duckett Way 0.04 N ,400 MPSI.41 7 Cox Ave Saratoga Woods Cir 0.03 E ,880 MPSI.43 8 S Saratoga Sunnyvale Rd Pierce Rd 0.05 S ,967 MPSI.48 9 S de Anza Blvd Sharon Dr 0.03 S ,763 MPSI S de Anza Blvd Sharon Dr 0.04 S ,897 MPSI.56 Information Deemed to be Reliable but not Guaranteed. Information provided as a courtesy and does not constitute implied or contractual agency or representation. Copyrighted report licensed to California Partners, Inc Page 18

19 Demographic Market Comparison Report 1 mile radius Type: County: Mixed Use, Retail/Office Santa Clara Population Growth Saratoga Sunnyvale Rd, Saratoga, CA Household Growth 1 Mile County 2018 Med Household Inc 2018 Households by Household Income 2018 Median Age 2018 Population by Race 2018 Renter vs. Owner 2018 Employed vs. Unemployed Retail/Freestanding Information Deemed to be Reliable but not Guaranteed. Information provided as a courtesy and does not constitute implied or contractual agency or representation. Copyrighted report licensed to California Partners, Inc Page 19

20 Demographic Market Comparison Report 1 mile radius Type: County: Mixed Use, Retail/Office Santa Clara Population Growth Saratoga Sunnyvale Rd, Saratoga, CA Mile County Growth % 8.94% Growth % 4.14% Empl 7, % 1,003, % Unempl % 36, % 2018 Population by Race 15,338 1,940,907 White 4, % 1,064, % Black % 55, % Am. Indian & Alaskan % 24, % Asian 10, % 708, % Hawaiian & Pacific Island % 9, % Other % 79, % Household Growth Growth % 8.95% Growth % 4.15% Renter Occupied % 281, % Owner Occupied 4, % 376, % 2018 Households by Household Income 5, ,254 Income <$25K % 73, % Income $25K - $50K % 75, % Income $50K - $75K % 75, % Income $75K - $100K % 66, % Income $100K - $125K % 72, % Income $125K - $150K % 53, % Income $150K - $200K % 86, % Income $200K+ 2, % 155, % 2018 Med Household Inc $191,384 $113, Median Age Information Deemed to be Reliable but not Guaranteed. Information provided as a courtesy and does not constitute implied or contractual agency or representation. Copyrighted report licensed to California Partners, Inc Page 20

21 Demographic Summary Report Saratoga Sunnyvale Rd, Saratoga, CA Building Type: Mixed Use, Retail/Office Secondary: Freestanding Total Available: % Leased: GLA: 13,000 SF Rent/SF/Yr: Year Built: ,858 SF 98% Negotiable Radius 1 Mile 3 Mile 5 Mile Population 2023 Projection 15, , , Estimate 15, , , Census 14, , ,339 Growth % 3.69% 3.86% Growth % 5.69% 6.73% 2018 Population by Hispanic Origin 375 5,593 39, Population 15, , ,819 White 4, % 42, % 161, % Black % 1, % 7, % Am. Indian & Alaskan % % 2, % Asian 10, % 70, % 155, % Hawaiian & Pacific Island % % % Other % 3, % 13, % U.S. Armed Forces Households 2023 Projection 5,295 42, , Estimate 5,121 41, , Census 4,931 39, ,061 Growth % 3.64% 3.76% Growth % 5.36% 6.10% Owner Occupied 4, % 29, % 71, % Renter Occupied % 11, % 53, % 2018 Households by HH Income 5,119 41, ,270 Income: <$25, % 2, % 10, % Income: $25,000 - $50, % 2, % 12, % Income: $50,000 - $75, % 2, % 12, % Income: $75,000 - $100, % 2, % 10, % Income: $100,000 - $125, % 3, % 12, % Income: $125,000 - $150, % 3, % 10, % Income: $150,000 - $200, % 6, % 17, % Income: $200,000+ 2, % 16, % 39, % 2018 Avg Household Income $204,295 $186,484 $162, Med Household Income $191,384 $169,015 $135,084 Information Deemed to be Reliable but not Guaranteed. Information provided as a courtesy and does not constitute implied or contractual agency or representation. Copyrighted report licensed to California Partners, Inc Page 21

22 Daytime Employment Report 1 Mile Radius Saratoga Sunnyvale Rd, Saratoga, CA Building Type: Mixed Use, Retail/Office Secondary: Freestanding GLA: 13,000 SF Year Built: 1974 Total Available: % Leased: Rent/SF/Yr: 2,858 SF 98% Negotiable Business Employment by Type # of Businesses # Employees #Emp/Bus Total Businesses 458 2,974 6 Retail & Wholesale Trade Hospitality & Food Service Real Estate, Renting, Leasing Finance & Insurance Information Scientific & Technology Services Management of Companies Health Care & Social Assistance Educational Services Public Administration & Sales Arts, Entertainment, Recreation Utilities & Waste Management Construction Manufacturing Agriculture, Mining, Fishing Other Services Information Deemed to be Reliable but not Guaranteed. Information provided as a courtesy and does not constitute implied or contractual agency or representation. Copyrighted report licensed to California Partners, Inc Page 22

23 Consumer Spending Report Building Type: Mixed Use, Retail/Office Secondary: Freestanding GLA: Year Built: Total Available: % Leased: Rent/SF/Yr: 13,000 SF ,858 SF 98% Negotiable Saratoga Sunnyvale Rd, Saratoga, CA Annual Spending ($000s) 1 Mile 3 Mile 5 Mile Total Specified Consumer Spending $238,639 $1,785,020 $4,848,436 Total Apparel $12,641 $96,381 $265,963 Women's Apparel 5,499 41, ,350 Men's Apparel 2,922 22,167 60,724 Girl's Apparel 854 6,724 19,098 Boy's Apparel 548 4,312 12,472 Infant Apparel 386 3,118 9,649 Footwear 2,432 18,615 51,669 Total Entertainment & Hobbies $15,962 $122,121 $340,758 Entertainment 4,022 29,760 79,541 Audio & Visual Equipment/Service 6,111 47, ,938 Reading Materials 1,085 8,167 22,099 Pets, Toys, & Hobbies 4,745 36, ,181 Personal Items 16, , ,649 Total Food and Alcohol $56,283 $431,548 $1,213,311 Food At Home 28, , ,215 Food Away From Home 23, , ,911 Alcoholic Beverages 3,923 30,309 86,185 Total Household $42,745 $312,569 $819,071 House Maintenance & Repair 6,517 45, ,026 Household Equip & Furnishings 14, , ,810 Household Operations 14, , ,374 Housing Costs 6,976 50, ,861 Information Deemed to be Reliable but not Guaranteed. Information provided as a courtesy and does not constitute implied or contractual agency or representation. Copyrighted report licensed to California Partners, Inc Page 23

24 Consumer Spending Report Saratoga Sunnyvale Rd, Saratoga, CA Annual Spending (000s) 1 Mile 3 Mile 5 Mile Total Transportation/Maint. $60,008 $443,297 $1,200,397 Vehicle Purchases 25, , ,103 Gasoline 15, , ,543 Vehicle Expenses 3,309 23,996 60,451 Transportation 8,876 64, ,486 Automotive Repair & Maintenance 7,492 56, ,815 Total Health Care $11,019 $82,725 $223,183 Medical Services 6,792 50, ,532 Prescription Drugs 3,102 23,377 62,774 Medical Supplies 1,125 8,448 22,877 Total Education/Day Care $23,278 $170,210 $443,104 Education 14, , ,129 Fees & Admissions 9,000 65, ,975 Information Deemed to be Reliable but not Guaranteed. Information provided as a courtesy and does not constitute implied or contractual agency or representation. Copyrighted report licensed to California Partners, Inc Page 24