BAKERSFIELD AIRPORT BUSINESS CENTER 3651 Pegasus Drive, Bakersfield, CA 93308

Transcription

1 BAKERSFIELD AIRPORT BUSINESS CENTER 3651 Pegasus Drive, Bakersfield, CA Offering Memorandum - Owner User Value Added Multi-Tenant Office Warehouse Building

2 Seventh Standard Road Merle Haggard Drive Pegasus Drive Unicorn Road & 3701 Pegasus Drive OFFERING MEMORANDUM COLLIERS INTERNATIONAL PAGE 2

3 TABLE OF CONTENTS Investment Summary... 4 The Offering... 5 Investment Highlights... 6 Location Maps... 9 Financials PRESENTED BY: DAVID WILLIAMS, SIOR Senior Vice President Principal Office Properties Team Central California Direct: david.a.williams@colliers.com BRE License # JASON ALEXANDER Senior Vice President Principal Office Properties Team Central California Direct: jason.alexander@colliers.com BRE License # CAMERON MAHONEY Associate Office Properties Team Central California Direct: cameron.mahoney@colliers.com BRE License # Pegasus & 3701 Pegasus Drive Drive OFFERING OFFERING MEMORANDUM MEMORANDUM COLLIERS INTERNATIONAL PAGE 3

4 INVESTMENT SUMMARY Address 3651 Pegasus Drive, Bakersfield, CA Assessors Parcel # PEGASUS Total Building Area 33,286 SF Parcel Size 2.11 acres Year Built 1985 List Price $3,300,000 Price PSF $99.00/SF Occupancy Vacant 57% (18,942 SF occupied) 14,344 SF Number of Tenants 4 Number of Suites 9 Parking Spaces Zoning 95 spaces (20 covered spaces) M-2 (Medium Industrial), County of Kern Tenants Alpha Media Brinks, Inc. Proctek, Inc. Sunview Vineyards of California 3651 & Pegasus 3701 Pegasus Drive Drive OFFERING OFFERING MEMORANDUM COLLIERS INTERNATIONAL PAGE 4

5 THE OFFERING > > 3651 Pegasus Drive is a multi-tenant office/ warehouse building in the premier Bakersfield Airport Business Center (BABC). > > 3561 Pegasus is a 33,286 SF multi-tenant single story concrete tilt-up flex industrial and office building. Suites range in size from 1,200 to 8,500 SF. The project is currently 57% leased with 4 tenants. > > Up to 14,344 SF is available to occupy and/or lease. More space is available to occupy by terminating existing short term leases. > > Based on the current occupancy, asking price, and existing income, the buyer will reap the reward of upside as the vacant spaces are leased up and/or occupied by an owner/user. > > BABC is home to several large corporations as well as small business owners including Caterpillar, The Bakersfield Californian, Bureau of Land Management, United Rentals, CarQuest and the main local branch of the U.S. Postal Service. > > Offered significantly below replacement cost. > > Prominent tenants include: Brinks, Alpha Media, Sunview Vineyard and Protek, Inc. > > In 2015 and 2016, the building went through a major capital improvement program, which has significantly elevated its competitive position in the market. > > BABC is bordered on the west by Freeway 99/Highway 65; Merle Haggard Drive/Seventh Standard Road on the north, and Norris Road to the south. All routes offer easy access to all points of the compass and is less than 15 minutes from downtown Bakersfield. N 3651 & Pegasus 3701 Pegasus Drive Drive OFFERING OFFERING MEMORANDUM COLLIERS INTERNATIONAL PAGE 5

6 INVESTMENT HIGHLIGHTS > > Class A concrete-tilt flex buildings > > Located in the Bakersfield Airport Business Center, a mixed use business center originally master planned and developed by Chevron Land and Development > > Best of Class portfolio > > Parking meets or exceeds code > > Several long term existing tenants that occupy 100% office space; or office/warehouse tenants that occupy spaces with a small percentage of office and the balance warehouse. > > The building offers expansive banded/storefront window and entries on the frontage and at the office portions of the building. The back side of the building provides ground level access through several 12 x 14 doors and/or man doors. > > Recent Capital improvements include: New covered parking New exterior building paint New outside common area patio/break area New landscaping Upgraded parking lot, stripping and slurry New tenant and building signage 3651 & Pegasus 3701 Pegasus Drive Drive OFFERING OFFERING MEMORANDUM COLLIERS INTERNATIONAL PAGE 6

7 INVESTMENT HIGHLIGHTS PROPERTY PHOTOS 3651 Pegasus Drive Drive OFFERING MEMORANDUM 3651 & 3701 Pegasus OFFERING MEMORANDUM COLLIERS INTERNATIONAL PAGE 7

8 PARCEL MAPS LOCATION MAPS Kern, CA, , 3651 PEGASUS DR, BAKERSFIELD, CA , Sheet: 1 of 1 N 3651 & Pegasus 3701 Pegasus Drive Drive OFFERING OFFERING MEMORANDUM COLLIERS INTERNATIONAL PAGE 8

9 LOCATION MAPS SITE PLAN NAP Circle M Hay KCDOA Schmidt 3651 Pegasus Drive 3651 & Pegasus 3701 Pegasus Drive Drive OFFERING OFFERING MEMORANDUM COLLIERS INTERNATIONAL PAGE 9

10 FINANCIAL OVERVIEW RENT ROLL SUITE TENANT SQUARE FEET CURRENT TERM (MOS) MONTHLY RENT COMMENCE CURRENT TERM EXPIRATION PER SQUARE FOOT MONTHLY RENT MONTHLY CAM TOTAL MONTHLY RENT TOTAL ANNUAL RENT BASE YEAR RENT INCREASES OPTION TO EXTEND OPTION TO TERMINATE 101 Vacant 8,391 $0.90 $7,552 $7,552 $90, Alpha Media 6, /01/ /31/2020 $1.05 $6,400 $1,250 $7,650 $91, Availabe upon request Brinks, Inc 7, /01/ /31/2020 $0.74 $5,501 $103 $5,604 $67, /01/2018 $6, /01/2019 $6, /01/2019 $5, /01/2020 $5, Proctek, Inc 2, /01/ /31/2018 $0.75 $1,520 $1,520 $18, None None None None None None 119 Sunview Vineyards 3,387 MTM $0.83 $2,807 $2,807 $33,681 None None None Vacant 5,953 $0.75 $4,465 $4,465 $53,577 33,286 $28,243 $16,237 $29,597 $355,158 Occupied Suites 18,942 57% Vacant Suites 14,344 43% 3651 & Pegasus 3701 Pegasus Drive Drive OFFERING OFFERING MEMORANDUM COLLIERS INTERNATIONAL PAGE 10

11 FINANCIAL OVERVIEW ESTIMATED OPERATING EXPENSES Projected Ownership Expenses 3651 Pegagsus Rentable Square Feet 33,286 Janitorial $5,677 Supplies: Cleaning and/or Restrooms $2,256 Window Cleaning/Power Wash $1,445 Parking Lot Sweeping $792 Roof Maintenance and/or repair $143 Locksmith $60 HVAC (Heat, Ventilation, Air) $4,881 Gardening/Landscape Maintenance $6,916 Pest Control $312 Property Management (1) $7,991 Security Related $3,000 Fire Safety $480 Insurance $3,933 Property Tax (2) $37,033 Electrical Work $300 Electricity-Common Area $2,165 Electricity for Vacancies $282 Water & Sewer $3,067 Refuse Collection $8,032 Total Direct Expenses $3.03/SF/YR Availabe upon request (1) Mangement Fee based on 4.5% of GSI at 50% occupancy assuming partial owner occupant (2) Taxes adjusted to reflect sales value 3651 Pegasus & 3701 Pegasus Drive Drive OFFERING OFFERING MEMORANDUM COLLIERS INTERNATIONAL PAGE 11

12 FINANCIAL OVERVIEW PRO FORMA Owner/User Acquisition Purchase Price $3,300,000 Owner Improvements $200,000 Roof $150,000 Rest Room/Common Area Upgrades $30,000 Total Cost $3,680,000 Down Payment 25% $920,000 Loan Amount 75% LTV $2,760,000 Monthly Debt Service 25yr Amt/5% ($16,135) Annual Debt Service ($193,616) Ownership Expenses $101,004 Total Ownership Cost ($294,620) Less: Tenant Income $210,959 Net Ownership Cost / YR ($83,661) Owner Suite Size 14,344 SF Monthly Cost Per Square Foot ($0.49/SF/MO) Investor As-Is Availabe upon request Gross Schedule Income $338, & Pegasus 3701 Pegasus Drive Drive OFFERING OFFERING MEMORANDUM COLLIERS INTERNATIONAL PAGE 12

13 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 3651 Pegasus Drive, Bakersfield, CA It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Owner and Colliers International. The material is based in part upon information supplied by the Owner and in part upon financial information obtained by Colliers International from sources it deems reliable. Neither Owner, nor their officers, employees, or agents make any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; 3) All photographs and graphic elements are property of Colliers International and use without express written permission is prohibited; and 4) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of 3651 Pegasus Drive in Bakersfield, CA or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Owner or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum & Pegasus 3701 Pegasus Drive Drive OFFERING OFFERING MEMORANDUM MEMORANDUM COLLIERS INTERNATIONAL PAGE 13

14 3651 Pegasus Drive N FOR MORE INFORMATION: DAVID A. WILLIAMS, SIOR Senior Vice President Principal Central California Ph david.a.williams@colliers.com BRE Lic. # JASON ALEXANDER Senior Vice President Principal Central California Ph jason.alexander@colliers.com BRE Lic. # CAMERON MAHONEY Associate Central California Ph cameron.mahoney@colliers.com BRE Lic. # COLLIERS 3651 & INTERNATIONAL 3701 Pegasus Drive OFFERING Stockdale MEMORANDUM Highway, Suite 102 Bakersfield, CA Phone Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) All rights reserved. COLLIERS INTERNATIONAL PAGE 14