Offering Memorandum :

Transcription

1 Investment Opportunity Multi Tenant Leased Downtown Merced Canal Street, Merced, CA Offering Memorandum : Commercial Brokerage P: (800) E: info@mercedyosemite.com CA BRE License #

2 Table of Contents Area Overview Maps Aerials Merced Demographics Merced Growth Merced Growth : UC Merced Investment Summary Downtown Merced Corridor Public Parking Lot Map Parcel Map Floor Plans Tenant Profiles Property History Investment Summary Income and Expenses Lease Abstract Merced Art Hop La Mejor Lens 360 Betty s Bridal 1735 Canal Street

3 Merced Demographics Population: 1 Mile 17,400 Average Age: 1 Mile 28 Households: 1 Mile 5,350 Average Household Income: 1 Mile $35,000 3 Mile 83,800 3 Mile 28 3 Mile 26,380 3 Mile $51,000 Top Merced County Employers Wal-Mart Quad Graphics City of Merced Golden Valley Health Center Merced Community College Merced Unified High School Dist Merced City School District Mercy Medical Center UC Merced County of Merced 5 Mile 96,900 5 Mile 28 5 Mile 29,847 5 Mile $53,000 Merced City Abstract Merced is a City on the Rise ; a dynamic community located in the Central Valley of California. Merced citizens fondly state that Merced is two hours from everything. It s true. The City is located approximately 110 miles southeast of San Francisco and 310 miles northwest of Los Angeles. Merced is known as The Gateway to Yosemite as it is less than a two hour drive away from the National Park. The City has a population of about 81,130 as of Merced is located on Highway 99, the dominant north- south freeway in California, and is served also by Highways 140 and 59. Merced has a small-town feel with city perks. The University of California Merced campus opened in 2005 and provides new educational and economic opportunity, adding to the alreadyestablished growth in the region. Local planning is underway to accommodate campus development, with a goal of 10,000 students by 2020 and to eventually accommodate about 25,000 students. Located in the heart of the San Joaquin Valley, a portion of California s Great Central Valley, Merced is the region s hub for education, culture, and business. The community offers abundant shopping, pleasant neighborhoods and established treelined streets. Merced s revitalized downtown is emerging as the entertainment center of the area. Annual events and festivals bring regional and even national recognition. Merced s Valley location southeast of San Francisco provides easy access to the central California coast, Sierra Nevada mountains and national parks, and major cities. Residents enjoy short drives to skiing, beaches, fishing, and other outdoor attractions

4 Merced Growth Downtown Revival: El Capitan Hotel The Mainzer: Expected Completion : 2019 San Francisco-based Joie de Vivre Hotels is partnering in the renovation of the fourstory hotel. Expected to finish construction in 2019, this boutique hotel will significantly elevate the downtown area. UC Merced : Downtown Center Completed 2018 The three-story Downtown Campus Center has given UC Merced a much-needed physical presence in the heart of downtown, increasing the economic vitality of the downtown area and creating major new opportunities for collaboration between the university and the community. Adding over 300 employees who will be co-located in the heart of downtown. Hotel Tioga : Luxury Apartments Expected Completion : 2019 The Tioga is on the National Register of Historic Places and its remodel will keep the historic character of the original building. The historic hotel was visited by John F. Kennedy, Marilyn Monroe and many other movie stars of the 1960 s.

5 Merced Growth Cont. Expanding Transportation: Merced County: Among the fastest growing in the State Merced County s population is projected to grow by nearly 68 percent between 2015 and 2060, reaching 452,519 residents. California High Speed Rail: Estimated completion 2025 Merced is slated to be a hub on the High Speed Rail, a $64 Billion dollar project, connecting San Francisco with Las Angeles. ACE Train: Estimated completion ACE Train: Estimated completion 2027 Recently approved Senate Bill 1 approves extension for the existing ACE Train to Merced, providing jobs and access over Altamont Pass to this fast growing region. Campus Parkway: Estimated completion 2022 $100 Million in State Hwy funds to extend campus parkway between UC Merced and Highway 99; setting the way for the business and trade corridor growth in Merced. Castle Commerce Center Tenant Highlights: Waymo (Google): Current Tenant Google s self driving vehicle testing facility that is currently utilizing ~121 acres. Port of LA: Planning Stage The recently approved agreement between the County of Merced and The Port of LA (Los Angeles) earmark more than 8 million square feet for industrial development. This could potentially bring in thousands of additional jobs to the region.

6 Merced Growth Expanded : UC Merced MERCED 2020 Project : Overview / Fast Facts $1.3 B Budget 1.2 M SQ FT 13 LEED Certified Gold Buildings Since opening its doors in 2005, UC Merced has been the fastest growing public university in the nation. This growth is now being accelerated with the UC Merced 2020 Project, which includes13 new building on the campus in a three-year span. The $1.3 billion expansion will allow UC Merced to serve up to 10,000 students by ,375 Under Grad Students 592 Grad Students 9,202 Alumni Top 100 Among Public Schools* 1,532 Staff & Facility

7 Downtown Merced Corridor Downtown Center Target Property

8 Public Downtown Parking Lots Target Property In addition to ample street parking, downtown Merced has approximately 1,400 dedicated Parking Spaces

9 Parcel Map

10 Floor Plans Living Area Area Calculation Summary Calculation Details 1 st Floor Approximately 5,820 Sq Ft = (76 x 75) + (15 x 8) 2 nd Floor Approximately 6,840 Sq Ft = 90 x 76 TOTAL (Rounded): Approximately 12,660 Sq Ft

11 Property History History in Brief // The New Lodging House, later known as the Angelus Hotel, occupied the upper floor of this building in 1914 while the Garibaldi Grocery Company was on the first floor. The United States Post Office serving Merced was located in this building from The postmasters during this period, C.D. Radcliffe ( ) and A.E. Daneri, were both Wilson appointees. By the 1920's the French Grocery Company had replaced the Garibaldi's store. The Lewis Shoe Company opened for business here around Following the Lewis Shoe company, the building was sold to Joseph Stefani, who opened up his iconic men's clothing store, which was established in June 1935, and moved to this location in The clothier remained an anchor for ~25 years in this location. The building has remained within the Stefani family for the past three generations and currently houses a number of tenants, including the Merced Art Hop; a keystone member of the cultural infrastructure of downtown Merced. 1970

12 Investment Summary & Comparison Offering Price Price Building SF NOI Cap Rate Occupancy Replacement Cost Address County Assessor s Parcel No. Building Area Land Area Stories Ownership Year Built Architect Historic Name $849, $67.14 $6, Projected Variable 60% PENDING Canal Street Merced, CA Merced ,660 Sq Ft est. (1 st and 2 nd Story) ~6750 SF est. 2 Stories Fee Simple 1912 Unknown Harris-Garibaldi Building Offering Price Price Building SF NOI Cap Rate Occupancy Replacement Cost Address County Assessor s Parcel No. Building Area Land Area Stories Ownership Year Built Architect $5,379, $ $322, % 100% $6,750, W. Main Street Merced, CA Merced ,112 Sq Ft.17 Acres 3 Stories Fee Simple 1928 Kingsbury E. Parker

13 Income and Expenses Income Summary Expense Summary Monthly Individual Tenant Rent Rate Merced Art Hop $ Betty s Bridal $ La Mejor $ Lens 360 $ Total $ Gross Income Jan 2017 April 2018 $43, Total Expenses $37, Net Operating Income (NOI) $6, Expenses Jan 2017 April 2018 Property Maintenance $4, Building Supplies $ PG&E $11, San Joaquin Glass $ Professional Services $3, Insurance $6, Merced County Tax $1, City of Merced $ Gateway Fire Equipment $211.36

14 Lease Abstract Tenants Premises Lease Term Renewal Options Lease Type Rent Increases Restrictions Use Property Taxes Utilities Property Insurance Roof & Structure Maintenance & Repairs Lens 360 Betty s Bridal La Mejor Merced Art Hop 12,660 Sq Ft est. Month to Month Agreements N/A Lease in Gross N/A Various Retail Application Landlord Pays Landlord Pays Landlord Pays Landlord Pays Landlord Pays

15 Tenant Spotlight : La Mejor La Mejor Magazine : Overview Regionally syndicated magazine highlighting local Hispanic Culture, Events and Businesses in the San Joaquin Valley. La Mejor Magazine was founded to give voice to the current happenings and heritage that affect the Hispanic community today.

16 Tenant Spotlight : Merced Art Hop Merced Art Hop: Overview Merced Art Hop is an educational non-profit organization, educating art awareness, expressing creativity and culture. To date, they have presented thirty one Art Hops with support and enthusiasm from the Community each event has tons of art, rich in culture, live music, interactive art activities and performers. The Art Hop is expanding in attendance and participation. Each event draws around 3,000 art enthusiasts and yearly total of 12,000, from all ages. To date they ve recruited around 300 visual and performing artists and have outreached to over 30 schools (Elementary, HS, and Colleges), and tabled 25 plus community events yearly. They continue to persevere in our mission to enhance the health and quality of life in the community of Merced and Central California, through the art and artists which live among us.

17 Tenant Spotlight : Betty s Bridal Betty s Bridal : Overview Betty s Bridal has been supplying the greater Merced area with dresswear and decor for all of life s most important events since 2012.

18 Tenant Spotlight : Lens 360 Lens 360: Overview Specializing in Social Media Management and Video Editing, Lens 360 has proven itself to be a fast growing business in the Merced Area. Lens 360 also offers itself as a small event venue for private art and entertainment.