For Sale: Two-Suite Building

Transcription

1 4144 Redwood Hwy, Medical Use OK with Use Permit Leased Investment or Owner/User High Visibility Corner Free Standing Building Offering Summary Asking Price: $1,575,000 Price Per Sq. Ft.: $350 psf Proforma CAP Rate: 6.58% Total Building Sq. Ft.: 4,500 +/- sf 2/20/18

2 Building/Space Description: A free standing, quality Medical/Chiropractic or office building of approximately 4,500 sq. ft. Suite A is a vacant, former veterinary office that includes a reception room, business office, 2 large executive offices, 4 smaller offices and 2 examinations rooms with sinks. Suite B is leased to an MRI company and includes a waiting room, business office, two doctor offices, four treatment rooms, a fully leaded x-ray room with darkroom and bathroom with shower. Deed Restrictions: The property has a deed restriction prohibiting a veterinarian practitioner until after April 7, Location Description: This property is located in Terra Linda, just north of the San Rafael Civic Center and close to the Northgate shopping Center. Easy access to Hwy Property Details: Assessor s Parcel #: Total Available Square Feet: 4,500 +/- sq. ft. Suite A: 2,500 +/- sq. ft. Suite B: 2,000 +/- sq. ft. Total Square Feet of Land: 11,325 +/- sq. ft. Year Constructed: /- Number of Parking Spaces: ADA, Unreserved Type of Construction: Brick Roof Type: Tar & Gravel Zoning/Permitted Uses: C/O (Commercial/ District Fire Sprinklers: No Heating & Air Conditioning: Yes Flood Zone Designation: Zone X (An area that is determined to be outside the 100- and 500-year floodplains) Financial Terms: Sale Price: $1,575,000 ($ psf) Financing: Conventional loan or possible SBA loan with 10% down for qualified buyer. Proforma CAP Rate: 6.58%

3 For Sale: Two-Suite Building

4 Rent Roll Unit Tenant Name Rentable Market Market Sq. Ft. Start Expiration Sq Ft Rent/Mo. Rate/Sq Ft % Date Date Suite B Health Diagnostics of California, LLC 2,000 $6, $ % 8/28/2012 2/29/19 Suite A Vacant - Proforma Rent 2,500 $6, $ % Total 4,500 $12, $ %

5 Proforma Income Statement Gross Scheduled Income $ 12, X 12 $ 151, Less Vacancy (5%) $ (7,575.00) Effective Gross Annual Income $ 143, LESS EXPENSES Fixed Real Property Taxes market value) $ 19, % + $ 4, Assessments Insurance (current) $ 1, Total Fixed $ 21, Variable Expenses Management (5%) $ 7, Water $ PG&E $ 1, Maintenance & Repair (5%) $ 7, Landscape Maintenance $ 1, Total Variable Expenses $ 18, TOTAL EXPENSES $ 40, NET OPERATING INCOME $ 103, Projected Expense Ratio 28% Yield Sales Price: Sq. Ft Price: Sale Price $1,575, % $ 2,073, $ CAP Rate 6.58% 5.50% $ 1,884, $ Size: 4,500 sq.ft. 6.00% $ 1,727, $ Price psf: $ psf 6.50% $ 1,594, $ % $ 1,480, $ 50.60

6 For Sale: Two-Suite Building REDWOOD HWY. FR EI S FES PRO. KWY AR ER P ENT AL C ION TA SP AR KW AY Click here to View in Google Maps

7 MRI Equipment Kitchen Storage X-Ray / Treatment Rm. ADA Restroom Executive Restroom Restroom Business / Treatment Rm. Treatment Room Changing Room Reception Waiting Area Entry Executive Suite B Entry Suite A Floorplans Not to Scale

8 For Sale: Two-Suite Building Building Suite B Suite A HC Parking Lot Plan Picnic Area 18 19

9 Sale Comparables th Ave SOLD San Rafael, CA Sale Date: Sale Price: Price/SF: 12/04/2017 (105 days on mkt) Bldg Type: $1,130,000 - Confirmed Year Built/Age: $ RBA: Marin County Class C /Residential Built 1984 Age: 33 2,883 SF Pro Forma Cap - Parcel No: Actual Cap Rate: 3.00% Comp ID: Sale Conditions: Deferred Maintenance Research Status: Confirmed Irwin St SOLD San Rafael, CA Marin County Sale Date: 07/19/2017 (513 days on mkt) Bldg Type: Class C Medical Sale Price: $790,000 - Confirmed Year Built/Age: Built 1922 Age: 95 Price/SF: $ RBA: 1,443 SF Pro Forma Cap Actual Cap Rate: - - Comp ID: Research Status: Confirmed Parcel No: Sale Conditions:

10 Properties For Sale Comparables Subject 3 18 Professional 4144 Redwood Center Hwy, Pky, San San Rafael, Rafael, CA CA Price $1,575,000 $3,100,000 Rentable Building Area 4,500 8,180 SF +/- sf Cap Rate 6.6% 4.85% Status Active LoopNet ID Property Notes $350 Per Square Foot Sir Francis Drake Blvd, Kentfield, CA Price $2,250,000 Rentable Building Area 3,415 SF Cap Rate 4.15% Status Active LoopNet ID Property Notes $659 Per Square Foot Lincoln Ave, San Rafael, CA Price $625,000 Rentable Building Area 1,344 SF Property Sub-type /Residential Status Active LoopNet ID Property Notes $465 Per Square Foot Listing's 3 18 Link: Professional Center Pky, Price $3,100,000 Rentable Building Area 8,180 SF Cap Rate 4.85% Status Active LoopNet ID Property Notes $379 Per Square Foot

11 Lease Comparables MEDICAL OFFICE Address: 908 E Street, Unit 1 San Rafael, CA Square Feet: 1,990 +/- Rent per SF/Mo.: $2.61 Lease Start: 8/1/12 Lease Expires: 7/31/22 MEDICAL OFFICE Address: 750 Las Gallinas Ave. San Rafael, CA Square Feet: 1,782 +/- Rent per SF/Mo.: $2.42 Lease Start: 12/1/16 Lease Expires: 11/30/21 OFFICE/MEDICAL Address: th Street San Rafael, CA Square Feet: 3,107 +/- Rent per SF/Mo.: $2.51 Lease Expires: 5/31/25

12 SBA 504 Loan Scenario 4144 Redwood Highway, San Rafael, CA 4,500 sf Own the Business? Own the Building. Purchase Price $1,575,000 Improvements $0 Other $0 Total Project Costs $1,575,000 Loan Structure Bank 1st Mortgage 50% $787,500 SBA 504 2nd Mortgage 40% $647,000 Down Payment 10% $157,500 Total Project with Fees % $1,592,000 90% SBA 504 Financing Example Financing Package Amount Rate Term Amort Monthly Pymt Bank 1st Mortgage 50% $ 787, % 10 Yrs 25 Yrs $ 4,604 SBA 504 2nd Mortgage* 40% $ 647, % 20 Yrs 20 Yrs $ 4,245 *Includes financed SBA fee of $17, % $1.97 PSF $ 8,849 Monthly Costs Adjusted Monthly Costs PSF Monthly PSF Monthly Mortgage Payments $1.97 $8,849 Total Monthly Payment $2.37 $10,649 Property Tax $0.35 $1,575 Less Depreciation ($0.60) -$2,692 Insurance $0.05 $225 Income from Unit A ($1.33) -6,000 Total Monthly Payment $2.37 PSF $10,649 Total Adjusted Monthly Payment $0.43 PSF $1,956 Out of Pocket Expenses Cash Down Payment 10.0% $157,500 Estimated Bank Fees 1.0% $7,875 Total Cash Required $165,375 Invest in Your Future: Equity Over First 10 Years $1,000,000 $500,000 EQUITY $ Assumptions: The following assumptions were made in the preparation of this sample. Please let us know if there are specific values you'd like to see. Bank rate, terms and fees are estimated and vary depending on lender. SBA rate is as of Feb '18. Actual rate is set at debenture sale. All fees and expenses are estimated and will vary by vendor. SBA Fee is estimated at 2.15% plus a $2,500 legal fee. Fees are financed. Operating costs, title and insurance are estimates. Depreciation is estimated at an 80% bracket over 39 years. Equity is based on a 2.0% annual appreciation rate. 90% LTV financing generally does not require additional collateral.