1595 HOLIDAY LANE, FAIRFIELD, CA

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1 FOR SALE HOLIDAY GALLERIA 1595 HOLIDAY LANE, FAIRFIELD, CA EXCELLENT VISIBILITY 42,657 SQUARE FEET $211/SQUARE FOOT SEVERAL NNN LEASES SEVERAL NATIONAL TENANTS OFFERED AT $9,000, % CAP RATE SHAWN WILLIS INCOME PROPERTY SERVICES A.G Locust Street, Suite 205 Walnut Creek, CA DRE # Shawn@IPSrealestate.com Copyright 2018 Income Property Services All rights reserved. The information provided herein is for general purposes only and is subject to change without notice. Nothing contained herein is intended to a binding representation. The owner and broker make no representation as to the information contained herein, or as to the character, occupancy, or configuration of the property described herein. It is the responsibility of the prospective buyer to independently verify all of the information. Page

2 CONTENTS Contents... Page 2 Overview... Page 3 Lease Schedule... Page 4 Income & Expenses... Page 5 Comparables... Pages 6-10 Rent Survey & Photos Rent Survey Map Sales Comparables Sales Comparables Photos Sales Comparables Map Fairfield Facts... Page 11 Fairfield Employees... Page 12 Fairfield Shopping... Page 13 Potential Lot Split... Page 14 Neighborhood Map... Page 15 City Map... Page 16 Regional Map... Page 17 Parcel Map... Page 18 Copyright 2018 Income Property Services. All rights reserved. The information provided herein is for general purposes only and is subject to change without notice. Nothing contained herein is intended to a binding representation. The owner and broker make no representation as to the information contained herein, or as to the character, occupancy, or configuration of the property described herein. It is the responsibility of the prospective buyer to independently verify all of the information. Page 2

3 OVERVIEW Holiday Galleria is an extremely well located retail center with outstanding freeway identity along I-80 in Fairfield, CA. The property draws further attention as a landmark from its towering 65 foot pylon sign with two sided tenant panels. In short, there are few retail properties in Solano County that possess the visibility, identity, and traffic counts of Holiday Galleria. The property has been extensively renovated during the past several years, including new stucco facades, signage, landscaping, paint, and countless interior and tenant improvements. The property is zoned CR per the City of Fairfield. This allows many different types of business uses and offers flexibility for an owner/user or investor. The demographics of Fairfield are strong with a total population of 113,500±. Currently, the property is occupied by several national and regional retailers such as Harbor Freight Tools, Lumber Liquidators, Mancini s Sleep World, CosmoProf and Mattress Firm, Soccer Coliseum, and Ace Furniture are strong, local tenants. The majority of the leases currently in place offer long term stability. Unlike many of the retail properties being marketed throughout Northern California, Holiday Galleria offers an investor an opportunity to purchase real value as opposed to merely buying an inflated lease. There is proven upside in the rent roll that a new owner will capitalize on immediately and in the future. Additionally, the asking price of Holiday Galleria is far less than the cost to replace it today. HIGHLIGHTS ADDRESS 1595 Holiday Lane, Fairfield, CA BUILDING SQUARE FEET 42,657 +/- LOT SIZE /- Acres YEAR BUILT 1986 (renovated ) APN ZONING CR DESCRIPTION Three buildings, single story, retail CONSTRUCTION Wood frame ROOF Pitched, metal HVAC Individual, forced air units for heat and air UTILITIES Separately metered for electricity, gas PARKING 144 on site spaces Page 3

4 LEASE SCHEDULE SUITE NO. TENANT SQ. FEET START DATE LEASE EXPIRES CAM % LEASE TYPE MONTHLY BASE RENT MONTHLY BASE RENT/SF MONTHLY EST. NNN MONTHLY SIGNAGE OPTIONS NEXT INCREASE DATE RENT INCREASE TYPE Bldg. A-1 Mancini's 5,921 12/1/97 10/31/ % NNN $10, $1.70 $2,200 $ yr At option scheduled Bldg. A-2 VACANT 1, % NNN $0.00 Bldg. A-3 Ace Furniture 4,343 10/1/10 MTM 10.18% Gross $5, $1.15 Bldg. B-1 Mattress Firm 5,980 4/31/98 12/31/ % NNN $8, $1.50 $1,495 $ scheduled Bldg. B-2 Soccer Coliseum 3,500 6/19/12 TBD 6.91% Gross $5, $1.71 Bldg. B-3 CosmoProf Sally Beauty 3,000 3/28/03 01/31/ % NNN $5, $1.67 $460 $ yr 2/1/2023 scheduled Bldg. B-4/5 Lumber Liquidators 6,430 4/1/14 12/31/ % NNN $9, $1.40 $2,894 1/ scheduled Bldg. C Harbor Freight Tools 11,900 7/20/11 10/31/ % Gross $13, $ /1/2021 scheduled TOTALS 42,657 $57, $7,049 Page 4

5 INCOME & EXPENSES RENTAL INCOME APP. SQUARE FEET CURRENT BASE RENT CURRENT RENT/ SQ FT FULL OCCUPANCY BASE RENT [2] PROJECTED RENT/ SQ FT (FROM LEASE SCHEDULE) 42,657 $57,103 $1.34 $60,269 $1.41 Signage income $905 $905 TOTALS 42,657 $58,008 $1.36 $61,174 $1.43 INCOME MONTHLY RENT $58,008 $61,174 ANNUAL RENT $696,095 $734,084 VACANCY 5.00% ($34,805) ($36,704) GROSS RENT $661,291 $697,380 NNN Recapture [1] $88,661 $95,232 TOTAL INCOME $749,952 $792,612 EXPENSES COMMON AREA MAINTENANCE 2017 $7,200 $7,200 INSURANCE 2017 $9,912 $9,912 PROPERTY TAXES (Estimated) % $100,303 $100,303 LEVIES AND ASSESSMENTS Actual $1,033 $1,033 PROPERTY MANAGEMENT 4.00% $29,998 $31,704 REPAIRS & MAINTENANCE Estimated $10,664 $10,664 REPLACEMENTS Estimated $5,000 $5,000 FIRE CONTROL 2017 $6,521 $6,521 PG&E 2017 $8,521 $8,521 WATER 2017 $3,649 $3,649 TOTAL EXPENSES $182, $184,507 $0.36 NET OPERATING INCOME $567,151 $608,105 DEBT SERVICE ($287,907) ($287,907) CASH FLOW $279,244 $320,198 PRINCIPAL PAY-DOWN $67,113 $67,113 TOTAL RETURN $346,357 $387,311 CAP RATE 6.30% 6.76% PRICE PER SQUARE FOOT $ $ CASH ON CASH 6.2% 7.1% TOTAL PRE-TAX RETURN 7.7% 8.6% PURCHASE PRICE $9,000,000 $9,000,000 DOWN PAYMENT $4,500,000 50% $4,500,000 50% PROPOSED NEW FIRST LOAN [3] $4,500,000 50% $4,500,000 50% [1] BASED ON 2017 ACTUAL AND PROJECTED [2] Vacant space projected at $1.40/s.f. NNN [3] 4.94% rate, 30 year amortization, fixed for 5 years, 1.7 DCR Page 5

6 RENT SURVEY & PHOTOS Holiday Galleria 1595 Holiday Lane BevMo 1545 Holiday Lane Staples/Starbuck's Center 1200 Oliver Road Gateway Courtyard Gateway Blvd. Central Way Plaza 4455 Central Way Multi-tenant retail complex with I-80 frontage, 65' two sided pylon sign, and strong identity. National retailers including Harbor Freight Tools, Lumber Liquidators, CosmoProf. Free standing, single tenant building leased to BevMo for 10 years with two, 5-year options. Built in 1988, renovated in ,996 s.f. Multi-tenant retail complex with Staples, Starbucks and Leslie's Pool Supply. Built in ,990 s.f. total building area. Multi-tenant retail complex with Chipotle, Cold Stone, Quiznos, Barnes & Noble and Cost Plus Multi-tenant retail complex with I-80 exposure and proximity to HWY /1000 parking, across from Starbuck's drive through. $1.49/s.f. [current average rents - NNN & Gross] $1.92/s.f. NNN $2.00-$3.85/s.f. NNN $2.00/s.f. NNN ($.86/s.f.) $2.20/s.f. NNN BevMo 1545 Holiday Lane Staples/Starbuck's Center 1200 Oliver Road Gateway Courtyard Gateway Blvd. Central Way Plaza 4455 Central Way Page 6

7 RENT SURVEY MAP SUBJECT PROPERTY 1595 HOLIDAY LANE 4455 Central Way 1545 Holiday Lane 1200 Oliver Road Gateway Blvd Page 7

8 SALES COMPARABLES ADDRESS SALE PRICE SQUARE FEET COST/ SQ. FEET CAP BUILT SALE DATE COMMENTS Watt Square Shopping Center 6737 Watt Avenue North Highlands $6,600,000 40,798 $ % / Retail center anchored by Ross, Rite Aid, Napa Auto Parts and Mountain Mikes Pizza. Located at Watt Avenue & Elkhorn Blvd. Sun Ridge Plaza Orange Drive Vacaville $8,290,000 42,394 $ % / Sun Ridge Plaza, retail strip center with four tenants including DMV and Blake Austin College. 48% LTV loan with Zions National Bank, adjacent Vacaville Auto Mall Pinole Vista Shopping Center 1530 Fitzgerald Drive Pinole $21,200,000 58,318 $ N/A / Lucky Supermarket and Kmart anchored neighborhood shopping center. Starbucks & Carl's Jr. pads. Other tenants including Noah's bagel. Pylon signage. Moeser Square San Pablo Avenue El Cerrito $6,050,000 18,872 $ % / Unanchored shopping center located across from a CVS anchored center. 16 local and regional tenants with an average remaining term of 5 years. New 64% LTV financing with First Republic Bank. Dias Plaza San Pablo Avenue San Pablo $6,895,000 47,920 $ % 1960 Pending Neighborhood shopping center anchored by Smart & Final, Autozone and Round Table Pizza acre site. TOTAL $10,608,750 41,876 $ % Page 8

9 SALES COMPARABLE PHOTOS Watt Square Shopping Center 6737 Watt Avenue, North Highlands Sun Ridge Plaza Orange Drive, Vacaville Pinole Vista Shopping Center 1530 Fitzgerald Drive, Pinole Moeser Square San Pablo Avenue, El Cerrito Dias Plaza San Pablo Avenue, San Pablo Page 9

10 SALES COMPARABLES MAP Watt Square Shopping Center 6737 Watt Ave, North Highlands SUBJECT PROPERTY 1595 HOLIDAY LANE Sun Ridge Plaza Orange Dr, Vacaville Pinole Vista Shopping Center 1530 Fitzgerald Dr, Pinole Dias Plaza San Pablo Avenue San Pablo Moeser Square San Pablo Ave El Cerrito Page 10

11 Fairfield Facts... Fairfield is a thriving community where families and businesses flourish. It offers a diverse economy in the heart of Solano County. Small town values remain, but it is more than an attractive bedroom community. Its strategic location, transportation networks, value priced properties, and proximity to Northern California's attractions, make Fairfield a prime location for commerce. DEMOGRAPHICS Size: 36.7 square miles Population (10/09): 106,502 persons Population Growth (avg.): 2% per year (90-09) Projected Population 2014: 113,532 persons Median Age (2009): 33.5 years Average Household Income (2009): $79,226 Labor Force (09/09): 49,400 Employed Residents (09/09): 43,200 Unemployment Rate (09/09): 12.60% Projected Jobs (2020): 55,570 Regional Labor Force (10/09): 1,605,300 % of Workforce who speak English: 77% % of pop. w/ High School Diploma or higher: 84.50% % of pop. w/ College Degree: 33% Crime Rate (2008): 43.1 per 1,000 persons Elevation: 15 to 400 feet above sea level Mean Daily Temperature: 62 degrees average Fire Protection: ISO Rating 3 fire class Page 11

12 Fairfield Employers... Fairfield, with its diverse and qualified workforce, has the right set of demographics for us to grow together. C. Larry Peters, CEO, West-Com Nurse Call System FAIRFIELD COMPANY TYPE JOBS Travis Air Force Base Military Base 14,353 County of Solano Government 2,850 Fairfield-Suisun Unifield School District Education 2,000 Northbay Medical Center Hospital 1,115 Solano Community College Education 650 City of Fairfield Government 571 Sutter Regional Medical Foundation Medical 475 Jelly Belly Candy Company Candy and Confections 461 Copart Corporate Headquarters 450 Westamerica Bancorporation Corporate Headquarters 407 Pride Industries Service 343 Anheuser Busch Brewery 315 Macy's Department Store 300 Professional Hospital Supply Hospital Supply 257 Wal-mart Retailer 241 J.C. Penney Department Store 235 California State Automobile Association Insurance 225 Partnership Healthplan Claims Center 200 Super Stores Inc./Sunyside Farms Dairy Products 200 Target Retailer 200 Ball Metal Container Group Beverage Containers 181 Home Depot Retailer 180 Costco Warehouse Retail 160 Sears Department Store 160 Abbott Labs - Ross Products Division Nutritional Products 151 GeoVera Holdings Corporate Headquarters 145 Amcor PET Plastics Plastics Manufacturing 136 United Parcel Services Delivery Services 136 Meyer Cookware US Packaging/Distribution 130 Safeway, Waterman Location Grocery 126 Food Maxx Grocery 120 Raley's #331 Grocery 118 Pacific Bell Data Center Telephone Data Center 114 Daily Republic Newspaper 108 Scott Lamp Company Manufacturing 101 Page 12

13 Fairfield Shopping... Fairfield, with its diverse and qualified workforce, has the right set of demographics for us to grow together. C. Larry Peters, CEO, West-Com Nurse Call System Fairfield Corners FedEx/Kinkos Starbucks Grocery Outlet/CVS Drugs Grocery Outlet CVS Drugs The Village Bonfare Market Five Star Car Wash Hillside Terrace CVS Drugs El Pollo Loco Fairfield Square Deloux Cosmetology S&L Thai Kmart Center Kmart Radio Shack Winery Square Food Maxx Walgreen's Solano Storage Center Solano Storage Mail Mart Plus Garaventa Retail Wal-Mart Center Wal-Mart Waterman Village Safeway Mission Village Wal-Mart Supercenter Laurel Creek Shopping Center Green Valley Ranch Marriott Fairfield Inn & Suites Holiday Lane Bev Mo Midfare Plaza Mexico Meat Market Geri-Towne Raley's Patelco Credit Union Huckleberry's Restaurant Gateway Courtyard Barnes & Noble Cost Plus Linens N' Things Petco Center Petco Golden 1 Credit Union Peet's Coffee Raley's Plaza Raley's Washington Mutual Bank Westfield Shoppingtown Solano Mall Edwards Theater Best Buy JC Penny Macy's Mervyn's Sears Green Valley Crossing Safeway Long's Drugs Ethan Allen Pet Club TJ Maxx Bank of America Gateway Plaza Babies R Us Michael's Office Max Ross Dress for Less Trader Joe's Staples Center Staples Costco Center Costco Fairfield Home & Garden Center Target Home Depot Oakmond Shopping Center Food Maxx Kragen Auto Parts Page 13

14 POTENTIAL LOT SPLIT for HOLIDAY LANE POTENTIAL LOT SPLIT FOR EACH OF THE THREE BUILDINGS Page 14

15 NEIGHBORHOOD MAP SUBJECT PROPERTY Page 15

16 CITY MAP SUBJECT PROPERTY HOLIDAY GALLERIA 1595 HOLIDAY LANE FAIRFIELD, CALIFORNIA Page 16

17 REGIONAL MAP SUBJECT PROPERTY HOLIDAY GALLERIA 1595 HOLIDAY LANE FAIRFIELD, CALIFORNIA Page 17

18 PARCEL MAP SUBJECT PROPERTY HOLIDAY GALLERIA 1595 HOLIDAY LANE FAIRFIELD, CALIFORNIA Page 18