FEATURES Single Tenant Leased Investment - lease in place since 2007 True NNN investment / Zero Management 4 legal parcels comprising 1.76± ac. Anchored by Empire Nissan of Santa Rosa Strong rental history Excellent visibility on Santa Rosa Avenue (main retail corridor) and U.S. Highway 101 including billboard In area with major national tenants Close to public transportation Annual rent increases Min. 2%/yr per CPI Term through 2041 (includes options at market rent min. 2%/yr) Includes auto service shop 1,650± sf Site part of and contiguous to Nissan Auto dealership OFFERING PRICE $4,975,000 5.6% Cap Rate / Annual Increases Dino D Argenzio, Partner Erlina Othman, Agent 1355 N Dutton Ave., Santa Rosa, CA 95401 (707) 528-1400 Cell: (707) 483-4783 Fax: (707) 524-1419 Lic #s: 00754303, 01985519 DArgenzio@keegancoppin.com, erlina.othman@keegancoppin.com
SINGLE TENANT / NNN INVESTMENT OFFERING SANTA ROSA, CA COMMERCIAL REAL ESTATE SALE Primary Type: Fee Ownership of Leased/Land for Sale Ground with Stable Lease Income Price: $4,975,000.00 Subcategory: Retail/Leased Investment (Land Leased to Auto Dealership) Land Size in s.f.: ±,76,500 sft parcel (approximately 1.77± acres) Agents: Dino D Argenzio and Erlina O. D Argenzio 1355 N. Dutton Avenue Suite 100 Santa Rosa, CA 95401 Cap Rate: 5.6% (With annual increases) Lot Size in Acres: ±1.77 Acres (in 4 legal parcels) Includes 1,650± sf service building Zoning: CG General Commercial Auto Retail Property Address: Property Description: 1287, 1295 & 1345 Santa Rosa Avenue, Santa Rosa, CA; Sonoma County APN #037-171-029; 037-171-028; 037-171-014; 037-17-027 This is a true NNN and Zero Management Investment offering with annual rent increases (minimum 2%/year or C.P.I./maximum 6%/year). Empire Nissan leases this site for retail sales/showroom and services and owns building next to this site. The subject site is crucial to the Nissan Auto Dealership. The site is paved and highly improved Auto Dealership Land with unsubordinated ground lease to Empire Nissan of Santa Rosa; lease commenced 2007 and is through May 2022 with annual C.P.I. of minimum 2% and maximum 6%/year through term; plus 19 year option period through April 2041. Total Annual Adjusted Net Income: (see detail, back page) Total Annual Projected Operating Expense: (see detail, back page) $280,368.00/year/NNN (Adjusts May/Annually) $0.00 (No Management Cost) Total Annual Net Operating Income: $280,368.00/year (As of May 2018)
Financing: Cash Flow: Features: Existing: Lender: Poppy Bank Principal: $1,517,000.00 Interest/Due Date: 5% Annual Debt Service: $110,280.00/year Cash Flow after Current Debt: $170,088.00/year/NNN or 4.9% cash on cash return with annual increases. $1,517,000.00 (potentially assumable) No debt cash flow is $280,368.00/year; post debt cash flow with existing loan debt = $170,088.00/year Lease Commencement April 2007: Tenant performed site improvements and constructed a dealership on adjacent owned land A) Remaining Lease Term Rent Schedule: Minimum Base Rent: May 1, 2018 April 30, 2019: $23,831.00/mo./NNN May 1, 2019 April 30, 2020: $24,307.00/mo./NNN May 1, 2020 April 30, 2021: $24,795.00/mo./NNN May 1, 2021 April 30, 2022: $25,290.00/mo./NNN Above Base Rent is based on 2% annual increase. *(Note: Base Rent Schedule is the greater of 2% or up to 6%,year CPI/year and could increase May 2019-April 30, 2041) B) First Option: Fifteen (15) Years: Base Rent for first year of first option to be the greater of 102% of 2022 year rent or Market Rent whichever is greater; C) Second Option: Four (4) Years: May 1, 2037 April 30, 2041: (Same As Above) D) Tenant to pay full increases in Real Estate Taxes and all maintenance costs of the site.
SITE PLAN PARCEL MAP VICINITY MAP
DEMOGRAPHICS POPULATION AVG HH INCOME 1 mile 25,000 $75,000 3 miles 125,000 $82,000 ADT Hwy 101 130,000 Santa Rosa Ave 28,093
INVESTMENT OFFERING CITY Santa Rosa, California County of Sonoma HIGHWAY COMMERICAL Santa Rosa Avenue ADDRESS 1287, 1295 & 1345 Santa Rosa Avenue, Santa Rosa SIZE 1.76± Acres Paved Site OFFERING PRICE $4,975,000 ZONING AND GENERAL PLAN CG (General Commercial) district. The CG zoning district is applied to areas appropriate for a range of retail and service land uses that primarily serve residents and businesses throughout the City, including shops, personal and business services, and restaurants. Residential uses may also be accommodated as part of mixed use projects, and independent residential developments. MARKET DATA DESCRIPTION OF IMMEDIATE SUB-MARKETS This Commercial Zoned Land has been an auto sales property since 1980 period. In 20 the property was secure under a long term lease by Empire Nissan of Santa Rosa and in order for the Lessee to construct their Auto Dealership sales and service building on adjacent land owner by Empire Nissan. Nissan Corp. and Empire Nissan built the existing next door facility. DESCRIPTION OF OVERALL MARKET The site includes a freestanding Highway visible billboard used by Lessee. This is a prime retail site with Freeway visibility raw land values for inferior locations run from $35.00 psft to $55.00 psft for undeveloped parcels with no improvements and zero income. NARRATIVE DESCRIPTION OF OFFERING This is a Triple Net Leased Investment offering of Land and Existing Improvements leased to Empire Nissan of Santa Rosa. DESCRIPTION OF PHYSICAL IMPROVEMENTS Approximately 1.76± acre parcel land with a highway billboard and small detailing shop. Site includes approx. 1,650± sf structure along South parcel line used for auto detailing of new and used cars. DESCRIPTION OF LOCATION Empire Nissan of Santa Rosa occupies this prime Auto/Retail Center location just south of the downtown business district and along the Original Auto Row Santa Rosa Avenue and just north of several major anchored Pomer Centers. The Auto/Retail Center is conveniently and easily accessible from both Santa Rosa Avenue and US Highway 101 by public and private transportation and is positioned along one of the busiest commercial corridors of Santa Rosa/Sonoma County. Existing and neighboring high profile tenants include Boot Barn, Old Navy, Starbucks, Target, Costco, Best Buy, Office Depot, Cost Plus, Trader Joe s, many restaurants and numerous other commercial and business service ventures.
SANTA ROSA LOCATION DESCRIPTION Santa Rosa, California is the county seat of Sonoma County. It is the largest city in the North Bay Area and all of California s Wine Country. The city of Santa Rosa is the North Bay s premier location and as a business and service hub, Santa Rosa is the economic engine that drives the region. As the largest city between Portland and San Francisco, Santa Rosa serves a four county region as the hub for technology and entrepreneurial businesses, retail, banking and employment. Santa Rosa has a dynamic and well-balanced economy, anchored by strengths in tourism, high-tech manufacturing and retail. Residents enjoy a superb quality of life while employers benefit from a skilled workforce. Santa Rosans have a deep appreciation for the arts, education, conscientious business development and quality living. The city of Santa Rosa offers a one-stop permitting process, easy access to Economic Development program staff and Community Development staff, collaborative partnerships with key business players; from our local chambers of commerce, the higher education institutes, brokers, benchmark industries, and community organizations to a global venture community, just to name a few. The city of Santa Rosa is conveniently located just 55 miles north of San Francisco via the Golden Gate Bridge. Santa Rosa is a main shopping hub for the surrounding neighborhoods near and along the 101 corridor, such as Petaluma, Rohnert Park, Windsor, Sonoma, Healdsburg, and Sebastopol. Santa Rosa has several prominent shopping districts, including Downtown, Santa Rosa Avenue, and Montgomery Village, offering a variety of general retail, boutique shops, dining, and entertainment. There are two regional shopping malls, Coddingtown Mall and Santa Rosa Plaza. Home to approx. 500,000 people, Sonoma County is a prime location for tourism as well as residence. Just a short drive from the San Francisco Bay Area, there are nine incorporated cities in the county, in addition to seventeen unincorporated areas. The city of Santa Rosa is the most populous area, home to approximately one-third of the county s population and was recently named as one of the nation s most livable communities by Partners for Livable Communities. Sonoma County s unemployment rate is one of the lowest in California and the county continues to show long-term job growth in the health care, hospitality and business service sectors. For the leisure, hospitality, educational and health services, which includes trade schools, social workers and health care professionals, has seen employment growth improve on a year-over-year basis. And business and professional services jobs have increased from a year earlier. In addition, new housing continues to increase throughout the county, while job growth and taxable sales also continue to rise.
SONOMA COUNTY RELAXED LIFESTYLE With our relaxed lifestyle and diverse scenic beauty that stretches from the vineyards of Sonoma Valley to the Redwood forests and the Pacific Ocean, Sonoma County epitomizes easy living. That s why Sonoma County receives top marks for its quality of life. The County recently ranked as one of the top 20 counties in the U.S. for climate/scenic beauty by the U.S. Department of Agriculture. IDEAL LOCATION Located less than an hour s drive north of San Francisco, Sonoma County enjoys the world-class culture of the San Francisco Bay Area, while still maintaining its agricultural heritage and rustic charm. Not surprisingly, Sonoma County was recently ranked as one of the top 100 metropolitan places to live by U.S. News and World Report. GREAT PLACE TO START A BUSINESS Sonoma County provides a range of options that make it a great place to do business. Over 25,000 businesses, both large and small, call Sonoma County home. Having some of the most affordable housing costs and a more competitive cost-of-doing-business compared to the rest of the San Francisco Bay Area, it s no surprise that young business start-ups are discovering Sonoma County as an ideal place to launch and grow. Nerdwallet.com recently ranked the cities of Healdsburg and Sonoma in the top 20 places to start a business. Sonoma County has also been recognized as one of the top 10 places for supporting Minority-Owned Businesses and Latino Entrepreneurs.