A 117,438 SQUARE FOOT ROSS AND KROGER (NAP) ANCHORED SHOPPING CENTER IN A DENSE INFILL BAY AREA LOCATION 10700 MACARTHUR BOULEVARD OAKLAND, CA 94605 2017 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF)
THE OPPORTUNITY HFF is pleased to offer the opportunity to acquire Foothill Square Shopping Center (the Property ), a 117,438 square-foot grocery anchored shopping center in Oakland, CA. The newly redeveloped Property is anchored by a Foods Co (separately owned by Kroger) and features a lineup of national retailers, including Ross Dress for Less, Wells Fargo, Shoe Palace, Carl s Jr., and Rainbow, along with a collection of daily needs and medical tenants, such as DaVita Dialysis. Strategically located adjacent to Interstate 580 with excellent visibility to over 165,000 cars per day, Foothill Square Shopping Center offers investors the chance to acquire a recently redeveloped shopping center in a dense infill area with immediate value creation opportunities.
PROPERTY SUMMARY ADDRESS 10700 MacArthur Boulevard Oakland, CA 94605 OCCUPANCY 96.7% GLA (SF) SITE SIZE PARKING 117,438 Owned (192,460 Total) 8.57 Acres 467 Spaces (3.98 per 1,000 SF) YEAR BUILT 1961 with additions in 1993 REDEVELOPED 2013-2017 TENANT SUMMARY TENANT SIZE (SF) % OF GLA EXPIRATION FOODS CO (BUILT/ OWNED BY KROGER) ROSS DRESS FOR LESS 71,950 NAP NAP 24,400 20.8% Jan-25 EARLY HEAD START 9,400 8.0% Aug-26 RAINBOW APPAREL 8,485 7.2% Jan-20 DAVITA 8,136 6.9% Dec-30 LIFELONG MEDICAL 7,907 6.7% Aug-19 SHOE PALACE 6,000 5.1% Mar-27 WELLS FARGO BANK 3,930 3.3% Mar-24 CARL'S JR. 2,999 2.6% Sep-37 3
INVESTMENT HIGHLIGHTS EXCELLENT VISIBILITY AND ACCESS Located adjacent to Interstate 580 with excellent visibility to over 165,000 cars per day, the Property enjoys direct freeway on/off access from 106th Ave. RECENTLY REDEVELOPED PROPERTY A full redevelopment of the Property was completed at the beginning of 2017, adding new buildings and revitalizing the Property with new facades and signage. The redevelopment has resulted in stronger tenant sales performance and enhanced curb appeal, while reducing future capital expenditures for a new owner. HIGH BARRIERS TO ENTRY The coastal infill location of the Property and lack of surrounding developable land sites ensure income security and continued value appreciation with limited options for future competitive projects. SAN LEANDRO TECH CAMPUS SAN LEANDRO STATION OAKLAND INTERNATIONAL AIRPORT (223,000 ANNUAL FLIGHTS) 880 BART LINE AFFLUENT DEMOGRAPHICS Average household income within a 1-mile radius of the Property is over $90,000, which is well above national average of $56,000 and the state average of $61,000. WASHINGTON ELEMENTARY SCHOOL 1-MILE 3-MILE 5-MILE 2017 EST. POPULATION 27,326 165,423 375,341 PROJECTED POPULATION GROWTH 2017-2022 5.67% 6.50% 5.96% ROOSEVELT ELEMENTARY SCHOOL MACA 2017 EST. AVERAGE HOUSEHOLD INCOME $90,103 $78,613 $87,772
DEMAND DRIVERS ALAMEDA SAN FRANCISCO ORACLE ARENA O.CO COLISEUM OAKLAND COLISEUM/AIRPORT INE BART L DOWNTOWN OAKLAND ELMHURST COMMUNITY PREP RT H UR BL VD 6 TH A V E BISHOP O DOWD HIGH SCHOOL 580 (165, DOWNTOWN OAKLAND (11 miles) 4% jobless rate in the East Bay in late 2016, its lowest level since 2001, driven by high paying tech jobs from companies O.CO COLISEUM (5 miles) Home of the Oakland Athletics Major League Baseball team with 81 home games per year and an average attendance of 19,000 per game (NAP) 10 OAKLAND INTERNATIONAL AIRPORT (5 miles) One of two international airports serving the Greater Bay Area. A hub for 222,771 annual flights, the airport served over 12.1 million passengers in 2016 000 VPD) OAKLAND ZOO OAK KNOLL RESIDENTIAL DEVELOPMENT (2 miles) A transformational, 935 unit singlefamily community development spanning 190 acres SAN LEANDRO TECH CAMPUS (3 MILES) A transformational, 750,000 squarefoot mixed-use technology-focused campus adjacent to the BART 5
INVESTMENT HIGHLIGHTS PREMIER GROCERY ANCHOR Anchored by a separately owned, brand new Foods Co that was built by Kroger (Foods Co parent company) in 2014 for $18M+. IMMEDIATE VALUE CREATION OPPORTUNITIES Strong tenant demand for development of 6,000 SF pad site as well as the ability to sell outparcels individually to capture lower single-tenant cap rates. DENSE AND GROWING POPULATION More than 375,000 people live within a 5-mile radius of the Property and current forecasts predict that the population will grow by another 6% over the next five years. STABLE RENT ROLL The majority of tenants are on long-term leases with over 65% of the GLA contractually leased until 2023 or later. LIMITED COMPETITION IN TRADE AREA The Property is well positioned to capture consumers from the surrounding densely populated Oakland trade area with few other competing grocery retail options. UNENCUMBERED ASSET The Property is being offered free and clear with no existing debt, providing the opportunity for investors to secure accretive financing and generate attractive leveraged returns. 375,000 PEOPLE WITHIN A 165,000 OVER 65% LEASED THROUGH 5-MILE RADIUS VEHICLES PER DAY OF GLA 2023
SITE PLAN 2ND FLOOR 2ND FLOOR Academy of Premier Hawaiian Protective Arts Heat Available Danceline Available POTENTIAL PAD SALE Leased thru 2030 (Not Separately Parceled) 580 Lifelong Med. Center Addition Lifelong Medical Center Lobby Future PAD/Shops Car Stereo & Alarms Decks Shoe Repair Academy of Hawaiian Arts Bingo Bingo Lobby Foothill Blvd Beauty Salon Nail Salon Bay Party Store Beauty Supply Coin Laundry Cell Phone Lucky Express Dry Cleaner MacArthur Blvd Loading (NAP) Early Head Start Electrical Room Bottle Storage POTENTIAL PAD SALE Leased thru 2037 (Separately Parceled) 108th Ave Mechanical Room LEASED AVAILABLE FUTURE DEVELOPMENT GLA 109th Ave Mclntyre St SECOND FLOOR POTENTIAL PAD SALES NOT A PART Julius St 7
10700 MACARTHUR BOULEVARD OAKLAND, CA 94605 CONTACT TEAM MEMBERS INVESTMENT ADVISORS DEBT ADVISORS BRYAN LEY Managing Director 310.407.2120 bley@hfflp.com CA Lic. #01458927 ERIC KATHREIN Senior Director 415.510.6961 ekathrein@hfflp.com CA Lic. #01896107 JUSTIN KUNDRAK Director 310.407.2145 jkundrak@hfflp.com CA Lic. #01994398 PETER SMYSLOWSKI Managing Director 415.276.6950 psmyslowksi@hfflp.com CA Lic. # 01301231 JEFF SAUSE Senior Director 310.407.2133 jsause@hfflp.com CA Lic. # 01852507 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses, and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. www.hfflp.com T. (310) 407-2100 F. (310) 407-2101 10250 CONSTELLATION BOULEVARD SUITE 1000 LOS ANGELES, CA 90094