Up to 40,000 SF - Office. Plans have been completed. All utilities stubbed to the site. Contact

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Jacob Dixon
5 years ago
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For Sale or Lease Granite Bay Business Park NOT ACTUAL BUILDING - EXAMPLE POTENTIAL DESIGN 4172 & 4176 Douglas Blvd Granite Bay, CA Washington Blvd

building Plans have been completed All utilities stubbed to the site GRANITE BAY BUSINESS PARK Located off Douglas Blvd in the Granite Bay Business

1 For Sale or Lease Granite Bay Business Park NOT ACTUAL BUILDING - EXAMPLE POTENTIAL DESIGN 4172 & 4176 Douglas Blvd Granite Bay, CA Washington Blvd Roseville Pkw Galleria Blvd Ro cklin Rd Up to 40,000 SF - Office The largest buildable parcels in Granite Bay Each parcel can accommodate a ±20,100 SF building Plans have been completed All utilities stubbed to the site GRANITE BAY BUSINESS PARK Located off Douglas Blvd in the Granite Bay Business Park, within walking distance of restaurants, banking and many other professional services Eureka Rd Pfe Rd Douglas Blvd Sierra College Blvd tbacci@ jwalker@

2 4172 & 4176 Douglas Blvd For Sale or Lease SITE Sierra College Blvd Douglas Blvd

3 Sale vs Lease Analysis For Sale or Lease Prepared by: Steve Lefler, Wells Fargo Bank ASSUMPTON TABLE Building size 20,000 SF Space occupied by owner 12,000 SF Building purchase price $4,200,000 $ PSF *Tenant improvement cost $1,000,000 $50.00 PSF Tenant improvement allowance $320,000 $40.00 PSF Market lease rate (NNN) $1.40 Mortgage amoritization SBA 7A 25 yrs Mortgage down payment SBA 7A 10% Mortgage interest rate SBA 7A 4.95% / YR Rent & expense escalation 3.00% / YR Building appreciation 1.50% / YR Building selling costs 5.00% OPERATING EXPENSES Real property taxes (1.1%)/YR $0.24 / M Maintenance & management $0.19 / M Insurance $0.03 / M Janitorial $0.07 / M Utilities $0.12 / M Total $0.65 / M PURCHASE COST FINANCING Building purchase price $ PSF Tenant improvement cost $50.00 PSF Total cost $260 PSF Building size 20,000 SF Total cost $5,200,00 Down payment 10% $520,000 Loan Amount $4,680,000 $365,672/YR Monthly Payment $27,223 / M 1.36 Disclaimer: These projections reflect one possible perspective of purchase, leasing, and mortgage opportunities that may be available in the market. They do not constitute a representatiuon, warranty, or guaranty of any of the numbers set forth herein. Prospective investors must develop their own independent market analysis projections, and assumptions. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Lease Scenario NNN rent $1.40 $1.44 $1.49 $1.53 $1.58 $1.62 $1.67 $1.72 $1.77 $1.83 $1.60 Expenses Full-Service rent Excess TI Amort Gross rent $2.15 $2.22 $2.28 $2.34 $2.41 $2.48 $2.55 $2.63 $2.70 $2.78 $2.45 Months Square feet 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Leasing costs $310,198 $319,047 $328,161 $337,549 $347,218 $357,178 $367,436 $378,002 $388,885 $400,094 $3,533,768 Continued on next page

4 For Sale or Lease Sale vs Lease Analysis Purchase Scernario Prepared by: Steve Lefler, Wells Fargo Bank Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Mortgage payment $1.36 $1.36 $1.36 $1.36 $1.36 $1.36 $1.36 $1.36 $1.36 $1.36 $1.36 Expenses Gross payments $2.01 $2.03 $2.05 $2.07 $2.09 $2.11 $2.14 $2.16 $2.18 $2.21 $2.10 Months/yr Square feet 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Gross payments 482, , , , , , , , , ,695 2,050,498 Lease income (NNN) 134, , , , , , , , , ,362 1,540,745 $347,872 $348,508 $349,163 $350,053 $351,986 $352,745 $353,527 $352,745 $353,527 $354,333 $3,509,753 Purchasing costs over 10 years Avg/psf/m Avg/mo Avg/yr 10 yr Gross payments $2.44 $29,248, $350,975 $3,509,753 Less reduction in mortgage balance , ,619 1,226,188 Less appreciation on building net of selling costs ,442 53, ,072 Net cost of ownership , ,049 1,750,493 Leasing costs over 10 years $ , ,377 3,533,768 Net savings - by purchasing $1.72 $14,861 $178,328 $1,783,275 Gross annual return on down payment over 10 years (doens t include loan fees, title, appraisal) SBA 7a vs SBA 504, next page tbacci@ jwalker@

5 Purchase Land at Granite Bay Business Park and Build a 20,000 SF Building FINANCING SCENARIOS - Ground up Construction with SBA 7a and SBA 504 Prepared for: Jon Walker, SVP, Kidder Mathews Prepared by: Steve Lefler, Wells Fargo Bank (916) January 15, 2016 Land 1,200, Building Shell & Tenant Improvements 4,000, Total $5,200, SBA 7A 90% -10% (down) $/SF SBA % - 40% - 10% (down) $/SF Square Feet 20,000 20,000 Total Cost 5,200, ,200, Down Payment: 10% 520, % 520, st Mortgage Bank - 1st Mortgage Loan Amount 90% 4,680, % 2,600, Interest Rate: (fixed for entire 25 yrs.) 4.95% Rate: 4.75% Term: 25 yrs. 300 Term: 20 yrs. 240 Amortization 25 yrs. 300 Amort: 20 yrs. 240 Debt Service $16, nd Mortgage - CDC 40% 2,080, Rate: 4.82% Term: 20 yrs. 240 Amort: 20 yrs. 240 Debt Service $13, A Monthly Loan Pmt. = NNN Rent equivalent $27, Payment-1st & 2nd Combined $30, Annual Debt Service: $326,672 $363,875 B NNN Costs/mo..40/SF 8, /SF 8, NNN Costs/Year 96,000 96,000 C=A+B Debt Svc.+NNN Costs/Mo. = Mod. Gross Rent 35, Modified Gross Rate/SF/Mo. 38, Debt Svc.+NNN Costs/Year 422, ,875 Equity Build up - Year 1 97,197 Combined both loans 143,230 D Equity Build up - per Mo. average 8, Combined both loans 11, Ratio - Bldg./Land (Assumption): 75%/25% 75%/25% 39 Year Strgt. Line Method: 3,900,000 3,900,000 Annual Depreciation: 100, ,000 Tax Rate Assumption: 38% 38% Depreciation: Annual Tax Savings 38,000 38,000 E Depreciation: Annual Tax Savings/Mo. avg. 3, , F=C-D-E Effective Monthly Cost (Adjusted from Mod. Gross Rent Above) includes benefit of Equity Build-up & Depreciation Tax Savings Out of Pocket Costs Down Payment 520, ,000 SBA Loan Fee 129,125 59,800 Wells Fargo Loan Fee - 26,000 Construction Monitoring (1%) 40,000 40,000 Appraisal, Title/Escrow, Legal & Misc. 7,750 13,750 Total Out of Pocket 696, ,550 The rates and terms above are not guaranteed and are for preliminary analysis purposes only No warranty or representation, express or implied is made as to the accuracy of the information contained herein.

THE VILLAGES AT STERLING POINTE

THE VILLAGES AT STERLING POINTE Exclusively Listed By: Robb Osborne Senior Vice President 916.677.8175 robb.osborne@tricommercial.com Lic #: 01398696 Brandon Sessions Vice President 916.677.8176 bsessions@tricommercial.com Lic #: 01914432