RETAIL / OFFICE INVESTMENT

Transcription

1 For more information contact: Broker Associate BRE # Brett Barron Broker BRE # Mike Silva Associate BRE # OFFERED AT: $3,388,000 Stablized Multi-Tenant Investment Property Mixed Use Retail/Office - Quality Construction Highway One Visibility - 2 blocks from Pacific Ocean Popular Tourist Site - 100% Occupied Phone: Fax: Howard Avenue Suite 204 Burlingame, CA

2 Property Details

3 Property Description Rockaway Business Park 400 Old County Rd & 200 San Marlo Wy PROPERTY DESCRIPTION: The Rockaway Business Park was developed in 2002 by the current owners and offers the investor a unique opportunity to acquire a quality built mixeduse retail and office property with local character and charm. Situated on a parcel of approximately 7,835 square feet, the business park is comprised of three buildings that total approximately 8,680 square feet of leasable space. Generous off street City Parking is available just south of the property. This multitenanted investment makes the Rockaway Business Park a sound choice for the investor looking to minimize daily management obligations. AREA LOCATION: Located along a six mile stretch of the Northern California coastline with its sandy beaches and rolling hillsides, Pacifica is just 10 minutes south of San Francisco and approximately 45 minutes north of Silicon Valley. The Rockaway Beach District, located just off Highway One, is a popular destination for tourists and Bay Area locals and is the home of the popular Wednesday Farmers Market, Pacifica Chamber of Commerce and Visitors Centers. Information & calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness. page 3 of 24

4 Executive Summary Client: Rockaway Business Park LLC Property Location: 400 Old County Road Property Type: Office/Retail Building (Multi Story) Assessors Parcel Number: Zoning: C1 CZ (Neighborhood Commercial Coastal Zone) Present Use: Office/Retail Building Size: Approximately 8,680 sq. ft. Land Area: Approximately 7,835 sq. ft. Interest Appraised: Fee Simple Assessed Value: $1,428,518 Assessed Improved Value: $1,181,472 Assessed Land Value: $247,046 Tax Year: Tax Amount: $19, Assessed Improved %: 82.71%

5 = M E T R O S C A N P R O P E R T Y P R O F I L E = San Mateo (CA) ======= OWNERSHIP INFORMATION ======= Parcel Number : Owner : Rockaway Business Park LLC CoOwner : Site Address : 400 Old County Rd Pacifica Mail Address : 274 Redwood Shores Pkwy #539 Redwood City Ca Owner Phone : ======= SALES AND LOAN INFORMATION ======= Transferred : Loan Amount : Document # : Lender : Sale Price : Loan Type : Deed Type : Interest Rate : % Owned : Vesting Type : ======= ASSESSMENT AND TAX INFORMATION ======= Land : $247,046 Exempt Type : Structure : $1,181,472 Exempt Amount : Other : Tax Rate Area : Total : $1,428, Taxes : $19, % Improved : 83 ======= PROPERTY DESCRIPTION ======= MLS Area : 655 Map Grid : Census :Tract: Block: 4 Property Use: Zoning : Land Use : 18 Com,Office Building,2+ Stories Subplat : Rockaway Beach Legal : LOTS 36, 37, 38 BLK 5 ROCKAWAY : BEACH AMEND & SUPP RSM 5/45 : ======= PROPERTY CHARACTERISTICS ======= Total Rms: Stories : 2 Lot Acres :.18 Bedrooms : Bldg Sq Ft : 8,680 Lot SqFt : 7,835 Bathrooms: Year Built : 2002 Lot Dimension : DiningRms: Eff Yr Built: Useable Lot SF : FamilyRms: Bldg Cond : Carport : Lvng Room: Bldg Style : Garage Space : Kitchen : Bldg Matl : Garage Type : BrkfastRm: Roof Matl : Garage Sq Ft : Util Room: Flr Cover1 : Unit Type : Den : Flr Cover2 : View : Attic : Foundation : Improve Type : FrmlEntry: Pool : Quality Class : Good BsmntType: Patio : Topography : Units : 6 Deck : Lot Location : AirMethod: Dishwasher : Sewer/Septic : Heat Type: Range/Oven : Tennis Court : Heat Srce: Microwave : Fire Sprnklrs : Fireplace: GrbgDisposal: Intercom : Bsmt SqFt: Security : MH Make : BsmtFinSF: Elevator : MH Wid X Len : BsmtUnfSF: Bldg Type : Waterfront : Recreatn : AvgStrHgt : 12.0 Other Rms: ======= EXTRA FEATURES ====== Information compiled from various sources. CoreLogic makes no representations or warranties as to the accuracy or completeness of information contained in this report.

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7 Property Photos RETAIL / OFFICE INVESTMENT Rockaway Business Park 400 Old County Road BLD - A 400 Old County Road BLD - A & B 400 Old County Road BLD - B 200 San Marlo Way 200 San Marlo Way 200 San Marlo Way Information & calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness. page 7 of 24

8 Maps and Aerials Rockaway Beach Business Park MAPS AREA MAP STREET MAP Information & calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness. page 8 of 24

9 Maps and Aerials Rockaway Beach Business Park AERIALS AREA AERIAL BUILDING AERIAL Information & calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness. page 9 of 24

10 Property Financials

11 Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $3,414,940 Investment - Cash $1,720,940 First Loan $1,694,000 INVESTMENT INFORMATION Purchase Price $3,388,000 Price per Tenant $308,000 Price per Sq. Ft. $ INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $197,067 Total Vacancy and Credits ($5,912) Operating Expenses ($64,525) Net Operating Income $126,631 Debt Service ($112,990) Cash Flow Before Taxes $13,641 Total Interest (Debt Service) ($75,462) Depreciation and Amortization ($84,166) Taxable Income (Loss) ($32,998) Tax Savings (Costs) $12,539 Cash Flow After Taxes $26,180 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 0.79% Optimal Internal Rate of Return (yr 5) 2.78% Debt Coverage Ratio 1.12 Capitalization Rate 3.74% Gross Income / Square Feet $22.70 Gross Expenses / Square Feet ($7.43) Operating Expense Ratio 33.76% Information & calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness. page 11 of 24

12 Pro Forma Summary TENANT ANNUAL SCHEDULED INCOME Tenant Actual Market TOTALS $195,131 $235,800 INVESTMENT SUMMARY Price: $3,388,000 Year Built: 2002 Tenants: 11 RSF: 8,680 Price/RSF: $ ANNUALIZED INCOME Actual Market Gross Potential Rent $195,131 $235,800 Less: Vacancy ($5,912) ($7,074) Effective Gross Income $189,219 $228,726 Less: Expenses ($64,525) ($64,525) Net Operating Income $124,695 $164,201 Debt Service ($112,990) ($112,990) Net Cash Flow after Debt Service $11,705 $51,212 Principal Reduction $37,527 $37,527 Total Return $49,232 $88,739 Lot Size: 7,835 sf Floors: 2 APN: Cap Rate: 3.68% Market Cap Rate: 4.85% FINANCING SUMMARY Loan Amount: $1,694,000 Down Payment: $1,694,000 Loan Type: Fixed Interest Rate: 4.5% Term: 25 years Monthly Payment: $9,416 DCR: 1.1 ANNUALIZED EXPENSES Actual Market Utility - Water $955 $955 Utility - Sewer $1,089 $1,089 Utility - PGE $941 $941 Telephone $2,157 $2,157 Taxes - Real Estate (1.13%) $38,284 $38,284 Supplies $152 $152 Security $980 $980 Repairs & Maintenance $2,338 $2,338 Misc $100 $100 Management Fees $9,734 $9,734 Licenses & Fees $296 $296 Landscaping $1,440 $1,440 Janitorial $1,699 $1,699 Cleaning & Maintenance $550 $550 Building Insurance $3,393 $3,393 Bank Charges $418 $418 Total Expenses $64,525 $64,525 Expenses Per RSF $7.43 $7.43 Expenses per 2014 actual, except property taxes at 1.13% value + vacancy factor of 3%. Information & calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness. page 12 of 24

13 Tenant Mix Report TENANT MIXES Suite Tenants Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly A Grape in the Fog 1152 $2,575 $2,575 $2,700 $2, Coldwell Banker $2,215 $2,215 $2,600 $2, Rockaway 1152 $2,060 $2,060 $2,200 $2, De Vera 1152 $1,273 $1,273 $2,200 $2, Raina Beach CMT 256 $750 $750 $750 $ Cynthia Hall 256 $550 $550 $600 $ Brian Kingston 256 $550 $550 $600 $ Brett Needleman 1152 $1,354 $1,354 $2,000 $2, Norma Lambert 1152 $1,698 $1,698 $2,000 $2, Study Log 1152 $2,000 $2,000 $2,000 $2, Study Log 1152 $1,236 $1,236 $2,000 $2, ,984 $16,261 $19,650 TENANT MIX TENANT MIX SQUARE FEET TENANT MIX INCOME A Grape in the Fog Coldwell Banker - Fahey Properties Rockaway Construction De Vera Therapeutic Raina Beach CMT Cynthia Hall Brian Kingston Brett Needleman Norma Lambert McLeod Esq. Study Log Study Log A Grape in the Fog Coldwell Banker - Fahey Propertie Rockaway Construction De Vera Therapeutic Raina Beach CMT Cynthia Hall Brian Kingston Brett Needleman Norma Lambert McLeod Esq. Study Log TENANT MIX MARKET INCOME Study Log A Grape in the Fog A Grape in the Fog Coldwell Banker - Fahey Properties Coldwell Banker - Fahey Propertie Rockaway Construction Rockaway Construction De Vera Therapeutic De Vera Therapeutic Raina Beach CMT Raina Beach CMT Cynthia Hall Cynthia Hall Brian Kingston Brian Kingston Brett Needleman Brett Needleman Norma Lambert McLeod Esq. Norma Lambert McLeod Esq. Study Log Study Log Information & calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness. Study Log Study Log page 13 of 24

14 Lease Rent Roll Suite Tenant Start Date Expire Date RSF $/RSF Annualized Rent Tenant Improvements Commissions Renewal Term Renewal Increase Notes A Grape in the Fog 10/15/ /30/2018 1,152 $27.29 $31,441 $0.00 $ year $ Space includes common patio area seating Coldwell Banker - Fahey Properties 12/01/ /30/2019 1,152 $23.36 $26,912 $0.00 $ year $ Tenant executed 5 year option to extend term with 3% annual increases beginning through Rockaway Construction 08/15/ /31/2020 1,152 $21.46 $24,720 $0.00 $ year $ De Vera Therapeutic 09/26/ /31/2017 1,152 $13.39 $15,429 $0.00 $ year $ Tenant has one 5 year option to extend term with 3% annual increases beginning 1o-1-12 through Raina Beach CMT 05/01/ /30/ $35.16 $9,000 $0.00 $ year $ Tenant has 2 (3)year options to extend term at market rate Cynthia Hall 02/14/ /13/ $25.78 $6,600 $0.00 $ year $ No Options Brian Kingston 02/01/ /31/ $25.97 $6,650 $0.00 $ year $ Month to month agreement. Also leases unit 400 #1 on lease through Brett Needleman 03/01/ /31/2017 1,152 $14.25 $16,410 $0.00 $ year $ Month to month agreement Norma Lambert McLeod Esq. 07/01/ /30/2018 1,152 $18.13 $20,885 $0.00 $ year $ Tenant has one 5 year option to extend lease on July 1, 2012 through June Study Log 09/01/ /31/2020 1,152 $20.99 $24,180 $0.00 $ year $ Study Log 01/01/ /31/2020 1,152 $12.88 $14,841 $0.00 $ year $0.00 Option to extend negociable Information & calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness. page 14 of 24

15 Investment Analysis

16 Real Estate Investment Details Analysis Analysis Date May 2017 Property Property Property Address Year Built 2002 RETAIL / OFFICE INVESTMENT Purchase Information Property Type Commercial Financial Information Down Payment $1,694,000 Purchase Price $3,388,000 Closing Costs $10,000 Tenants 11 LT Capital Gain 20.00% Total Rentable Sq. Ft. 8,680 Federal Tax Rate 28.0% State Tax Rate 10.0% Discount Rate 8.00% Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $1,694, years 25 years 4.5% $9,416 $16,940 Income & Expenses Gross Operating Income $191,155 Monthly GOI $15,930 Total Annual Expenses ($64,525) Monthly Expenses ($5,377) Contact Information greg@gcohn.com BRE # Brett Barron brettbarron@capitalrealtygrp.com BRE # Mike Silva msilva@capitalrealtygrp.com BRE # The information contained herein has been obtained from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage and age are approximate. All information should be verified prior to purchase or sale. page 16 of 24

17 Cash Flow Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 GROSS SCHEDULED INCOME $197,067 $202,385 $208,037 $213,831 $219,799 General Vacancy ($5,912) ($6,072) ($6,241) ($6,415) ($6,594) Total Operating Expenses ($64,525) ($65,421) ($66,332) ($67,257) ($68,197) NET OPERATING INCOME $126,631 $130,892 $135,464 $140,159 $145,008 Loan Payment ($112,990) ($112,990) ($112,990) ($112,990) ($112,990) NET CASH FLOW (b/t) $13,641 $17,902 $22,474 $27,169 $32,018 Cash On Cash Return b/t 0.79% 1.04% 1.31% 1.58% 1.86% NET OPERATING INCOME $126,631 $130,892 $135,464 $140,159 $145,008 Depreciation ($83,489) ($87,125) ($87,125) ($87,125) ($83,500) Amortization ($678) ($678) ($678) ($678) ($678) Loan Interest ($75,462) ($73,738) ($71,935) ($70,049) ($68,076) TAXABLE INCOME (LOSS) ($32,998) ($30,649) ($24,274) ($17,692) ($7,246) Income Taxes $12,539 $11,647 $9,224 $6,723 $2,753 CASH FLOW (a/t) $26,180 $29,549 $31,698 $33,892 $34,772 Cash On Cash Return a/t 1.52% 1.72% 1.84% 1.97% 2.02% Footnotes: b/t = before taxes;a/t = after taxes Information & calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness. page 17 of 24

18 Financial Indicators Description Year 1 Year 2 Year 3 Year 4 Year 5 Gross Rent Multiplier Capitalization Rate 3.74% 3.86% 4.00% 4.14% 4.28% Cash On Cash Return b/t 0.79% 1.04% 1.31% 1.58% 1.86% Cash On Cash Return a/t 1.52% 1.72% 1.84% 1.97% 2.02% Debt Coverage Ratio Gross Income per Sq. Ft. $22.70 $23.32 $23.97 $24.63 $25.32 Expenses per Sq. Ft. ($7.43) ($7.54) ($7.64) ($7.75) ($7.86) Net Income Multiplier Operating Expense Ratio 33.76% 33.32% 32.87% 32.43% 31.99% Loan To Value Ratio 48.72% 47.57% 46.36% 45.09% 43.77% Footnotes: b/t = before taxes; a/t = after taxes Information & calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness. page 18 of 24

19 Demographics

20 Demographic Summary Report Building Type: Class: RBA: Typical Floor: Class B Office B 1,000 SF 543 SF Bldg B 400 Old County Rd, Total Available: % Leased: Rent/SF/Mo: 0 SF 100% - Radius 1 Mile 3 Mile 5 Mile Population 2022 Projection 4,086 47, , Estimate 3,889 45, , Census 3,576 41, ,297 Growth % 5.26% 4.72% Growth % 10.03% 6.66% 2017 Population by Hispanic Origin 517 7,146 34, Population 3,889 45, ,904 White 3, % 28, % 82, % Black % 1, % 4, % Am. Indian & Alaskan % % 1, % Asian % 12, % 70, % Hawaiian & Pacific Island % % 2, % Other % 2, % 8, % U.S. Armed Forces Households 2022 Projection 1,528 17,201 61, Estimate 1,458 16,371 59, Census 1,357 14,997 55,426 Growth % 5.07% 4.70% Growth % 9.16% 6.83% Owner Occupied 1, % 11, % 38, % Renter Occupied % 4, % 20, % 2017 Households by HH Income 1,457 16,369 59,214 Income: <$25, % 1, % 5, % Income: $25,000 - $50, % 1, % 7, % Income: $50,000 - $75, % 1, % 7, % Income: $75,000 - $100, % 1, % 8, % Income: $100,000 - $125, % 1, % 7, % Income: $125,000 - $150, % 2, % 6, % Income: $150,000 - $200, % 2, % 8, % Income: $200, % 2, % 8, % 2017 Avg Household Income $143,917 $135,396 $120, Med Household Income $128,218 $114,690 $99,550 Information deemed reliable, but, not guaranteed Copyrighted report licensed to Capital Realty Group, Inc /15/2017 Page 1

21 Demographic Detail Report Building Type: Class: RBA: Typical Floor: Class B Office B 1,000 SF 543 SF Bldg B 400 Old County Rd, Total Available: % Leased: Rent/SF/Mo: 0 SF 100% - Radius 1 Mile 3 Mile 5 Mile Population 2022 Projection 4,086 47, , Estimate 3,889 45, , Census 3,576 41, ,297 Growth % 5.26% 4.72% Growth % 10.03% 6.66% 2017 Population by Age 3,889 45, ,904 Age % 2, % 9, % Age % 2, % 9, % Age % 2, % 8, % Age % 2, % 8, % Age % 2, % 9, % Age % 2, % 11, % Age % 2, % 12, % Age % 2, % 12, % Age % 2, % 11, % Age % 3, % 11, % Age % 3, % 12, % Age % 3, % 12, % Age % 3, % 11, % Age % 2, % 9, % Age % 1, % 6, % Age % 1, % 4, % Age % % 3, % Age % % 3, % Age % 7, % 28, % Median Age Average Age Information deemed reliable, but, not guaranteed Copyrighted report licensed to Capital Realty Group, Inc /15/2017 Page 2

22 Demographic Detail Report Bldg B 400 Old County Rd, Radius 1 Mile 3 Mile 5 Mile 2017 Population By Race 3,889 45, ,904 White 3, % 28, % 82, % Black % 1, % 4, % Am. Indian & Alaskan % % 1, % Asian % 12, % 70, % Hawaiian & Pacific Island % % 2, % Other % 2, % 8, % Population by Hispanic Origin 3,889 45, ,904 Non-Hispanic Origin 3, % 38, % 135, % Hispanic Origin % 7, % 34, % 2017 Median Age, Male Average Age, Male Median Age, Female Average Age, Female Population by Occupation 3,217 37, ,048 Classification Civilian Employed 2, % 25, % 93, % Civilian Unemployed % % 3, % Civilian Non-Labor Force % 11, % 43, % Armed Forces % % % Households by Marital Status Married 828 9,110 31,366 Married No Children 468 5,303 18,311 Married w/children 360 3,807 13, Population by Education 3,098 35, ,176 Some High School, No Diploma % 2, % 11, % High School Grad (Incl Equivalency) % 6, % 24, % Some College, No Degree % 11, % 41, % Associate Degree % 1, % 8, % Bachelor Degree % 8, % 33, % Advanced Degree % 4, % 12, % Information deemed reliable, but, not guaranteed Copyrighted report licensed to Capital Realty Group, Inc /15/2017 Page 3

23 Demographic Detail Report Bldg B 400 Old County Rd, Radius 1 Mile 3 Mile 5 Mile 2017 Population by Occupation 4,304 49, ,199 Real Estate & Finance % 1, % 6, % Professional & Management 1, % 14, % 48, % Public Administration % 1, % 5, % Education & Health % 5, % 21, % Services % 4, % 16, % Information % % 2, % Sales % 6, % 24, % Transportation % 2, % 10, % Retail % 2, % 11, % Wholesale % % 2, % Manufacturing % 1, % 5, % Production % 1, % 8, % Construction % 2, % 6, % Utilities % 1, % 7, % Agriculture & Mining % % % Farming, Fishing, Forestry % % % Other Services % 1, % 5, % 2017 Worker Travel Time to Job 2,113 24,030 90,142 <30 Minutes 1, % 12, % 51, % Minutes % 9, % 32, % 60+ Minutes % 2, % 6, % 2010 Households by HH Size 1,357 14,996 55,426 1-Person Households % 3, % 12, % 2-Person Households % 4, % 16, % 3-Person Households % 2, % 9, % 4-Person Households % 2, % 8, % 5-Person Households % % 4, % 6-Person Households % % 1, % 7 or more Person Households % % 1, % 2017 Average Household Size Households 2022 Projection 1,528 17,201 61, Estimate 1,458 16,371 59, Census 1,357 14,997 55,426 Growth % 5.07% 4.70% Growth % 9.16% 6.83% Information deemed reliable, but, not guaranteed Copyrighted report licensed to Capital Realty Group, Inc /15/2017 Page 4

24 Demographic Detail Report Bldg B 400 Old County Rd, Radius 1 Mile 3 Mile 5 Mile 2017 Households by HH Income 1,457 16,369 59,214 <$25, % 1, % 5, % $25,000 - $50, % 1, % 7, % $50,000 - $75, % 1, % 7, % $75,000 - $100, % 1, % 8, % $100,000 - $125, % 1, % 7, % $125,000 - $150, % 2, % 6, % $150,000 - $200, % 2, % 8, % $200, % 2, % 8, % 2017 Avg Household Income $143,917 $135,396 $120, Med Household Income $128,218 $114,690 $99, Occupied Housing 1,458 16,371 59,213 Owner Occupied 1, % 11, % 38, % Renter Occupied % 4, % 20, % 2010 Housing Units 1,491 16,780 61,018 1 Unit 1, % 14, % 43, % 2-4 Units % % 3, % 5-19 Units % 1, % 5, % 20+ Units % 1, % 8, % 2017 Housing Value 1,192 11,910 38,813 <$100, % % % $100,000 - $200, % % % $200,000 - $300, % % 1, % $300,000 - $400, % % 1, % $400,000 - $500, % % 2, % $500,000 - $1,000, % 9, % 28, % $1,000, % 1, % 4, % 2017 Median Home Value $799,999 $759,192 $736, Housing Units by Yr Built 1,492 16,858 61,675 Built % 1, % 4, % Built % % 2, % Built % % 2, % Built % 1, % 4, % Built % 2, % 11, % Built % 4, % 13, % Built % 4, % 15, % Built < % 1, % 7, % 2017 Median Year Built Information deemed reliable, but, not guaranteed Copyrighted report licensed to Capital Realty Group, Inc /15/2017 Page 5