Westgate Shopping Center Woodland, California Offering Memorandum Presented by: John DuBois 916. 274. 4424 jd@corecre.com CA BRE #00702547 Jon Gianulias 916. 274. 4422 jg@corecre.com CA BRE #01227233 Mark Denholm 916. 274. 4404 md@corecre.com CA BRE #01437366 2264 Fair Oaks Blvd, Suite 201 Sacramento, CA 95825 CA BRE #01904661
Offering Summary Price: $15,038,400 Net Operating Income (NOI): $1,015,092 Cap Rate: 6.75% Price Per SF: $135 Occupancy: 97% Address: GLA: Land Area: Parking 361-383 W Main Street 895 W Lincoln Ave Woodland, CA 95695 ±111,691 SF ±9.64 Acres 517 Spaces Year Built: 1987 APN: 065-010-33, 34, 35, 36, & 37 2
3 Investment Highlights Strong Grocery Anchor Westgate Shopping Center is anchored by a high-volume Raley s Supermarket reporting sales over $28 million annually. Raley s is the dominant grocery retailer in the greater Sacramento area, and operates 124 stores. * Raley s extensively remodeled their interior in 2014. Strategic Location Situated on the far west side of the City of Woodland, Westgate has limited competition within the submarket. The center is ideally located to serve the daily shopping needs of the west side of Woodland and the rural neighborhoods west of Woodland, with access provided from Highway 16 (Main Street). Value-Add Opportunity In addition to the potential lease-up of existing vacancies, several tenants are not paying full CAM reimbursements, offering the opportunity to increase net operating income over time by converting leases to triple net. In addition, there is a 0.24 acre undeveloped parcel (APN 065-010-36) included in the offering (Prospective buyers must conduct their own independent investigation as to the development potential of this parcel). Offered Free & Clear The property is offered free & clear of the existing debt. The seller plans to defease the existing conduit loan to allow the buyer to place new financing on the property, or pay all cash. Alternatively, the buyer could possibly assume the existing debt. The existing loan balance is approximately $7 million, with a 6.06% interest rate, 30 year amortization, maturing 2/10/21.
Site Plan West Main St 361-A VACANT 361-B 383 383-C Nails 353-A VACANT 353-B 383-D Smoke Shop Jewlery 353-C 353-D Pizza Precision 6 353-E 353-F Golden Dragon 353-G Hearing Care Edward Jones 353-H 353-J VACANT 353-K County Road 98 Speedy Wash Western Wear 375-A 375-B 375-D Mexican Restaurant Pure Water West Lincoln Avenue Chiropractor Oil Changers & Repair 895 SUITE TENANT SF (±) 353- A Woodland Nails 1,000 353-B Vacant 1,000 353- C Woodland Smoke Shop 1,000 353- D Dan T's Custom Jewelry 1,200 353- E Pizza 1,320 353- F Precision 6 1,080 353- G Golden Dragon 2,955 353- H Speedy Wash 2,363 353- J Woodland Western Wear 3,000 353-K Vacant 1,500 361- A Togo's 1,200 361-B Vacant 1,300 367 Raley's 60,114 375 Jo- Ann Fabrics 12,024 375- A Sol Mexican Cuisine 2,400 375- B Pure Water 1,400 375- C Sears 6,950 375- D Phillips Chiropractic 1,980 383 Country Waffles 3,030 383- C Helix Hearing Care 1,950 383- D Edward Jones 1,020 895 Oil Changers and Repair 1,905 4
Property Photos 5
Location Demoraphics Westgate Shopping Center Demographics 1Mile 3 Mile 5 Mile Population 13,710 47,618 63,419 Average HH Income $70,422 $71,870 $78,755 Total Businesses 673 1,991 2,429 Total Employees 8,535 22,653 29,471 6
Retail Aerial John DuBois Jon Gianulias Mark Denholm 7 916. 274. 4424 jd@corecre.com 916. 274. 4422 jg@corecre.com 916. 274. 4404 md@corecre.com
Regional Map SUBJECT Westgate Shopping Center Woodland, California 8
Woodland, California Woodland is the county seat of Yolo County, California, located approximately 15 miles northwest of Sacramento, and 11 miles north of Davis. Woodland is a part of the Sacramento-Arden- Arcade-Roseville Metropolitan Statistical Area. VISIT WWW.CITYOFWOODLAND.ORG Area Overview Woodland s origins trace back to 1850 when California gained its statehood and Yolo County was established. The addition of a railroad line, the close proximity to Sacramento, and the more recent addition of Interstate 5, helped create a thriving city. Within the past decade, Woodland has grown immensely, with many additions to the community. Numerous subdivisions have been built and several major chain stores have opened business in Woodland. Main Street has seen a revival with the addition of several new restaurants, a brand new court house, renovations of the Old State Theater into a 10-screen multiplex movie theater, and plans to build a hotel and a music venue. Local Business Woodland and the immediate surrounding area s economy has largely been based on agriculture. To this day, Yolo County is one of the largest crop producers in the state. Similarly, the transportation industry has played a large part in Woodland s economy. With heavy agricultural production comes the need to transport it. While maintaining the large role that agriculture and transportation still play in the town s activities, over the years Woodland has branched out into other sectors as well. The industrial sector has grown in Woodland as is seen by the numerous manufacturing and warehouse centers. 9
Proforma Operating Statement In-Place Stabilized 2018 2019 Scheduled Base Rent 1 $1,130,269 $1,217,184 Expense Reimbursement Income 356,083 397,179 Vacancy Allowance 0 (74,918) Effective Gross Revenue 1,486,352 1,539,445 Operating Expenses: Property Tax 157,000 160,140 Insurance 19,372 19,953 Common Area Maintenance 203,816 209,931 Management Fees 74,318 76,972 Reserves for CAPEX 16,754 17,256 Total Operating Expenses (471,260) (484,252) Net Operating Income 1,015,092 1,055,193 1. In-place year 1 scheduled base rent assumes no lease-up of 3,800 square feet of currently vacant space. Year 2 stabilized income assumes all of the currently vacant space is leased, less a 7.5% vacancy allowance (with no vacancy allowance applied to the Raley's income). 10
Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 For the Years Ending: Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Potential Gross Revenue Base Rental Revenue $1,130,269 $1,217,184 $1,227,782 $1,234,335 $1,242,007 $1,243,611 Absorption & Turnover Vacancy 0 (12,360) (10,333) 0 (4,277) 0 Scheduled Base Rental Revenue 1,130,269 1,204,824 1,217,449 1,234,335 1,237,730 1,243,611 Expense Reimbursement Revenue 342,666 383,652 419,358 432,752 441,779 453,254 Woodland Western Wear CAM 11,017 11,127 11,238 11,351 11,464 11,579 Oil Changers CAM 2,400 2,400 2,400 2,400 2,400 2,400 Total Potential Gross Revenue 1,486,352 1,602,003 1,650,445 1,680,838 1,693,373 1,710,844 General Vacancy 0 (62,558) (67,775) (79,315) (103,441) (128,313) Effective Gross Revenue 1,486,352 1,539,445 1,582,670 1,601,523 1,589,932 1,582,531 Operating Expenses Property Tax 157,000 160,140 163,343 166,610 169,942 173,341 Building Insurance 17,047 17,558 18,085 18,628 19,187 19,762 Liability/Umbrella Insurance 2,325 2,395 2,467 2,541 2,617 2,695 PG&E 23,521 24,227 24,953 25,702 26,473 27,267 Water - Landscape 12,601 12,979 13,368 13,769 14,183 14,608 Sweeping 11,440 11,783 12,137 12,501 12,876 13,262 Steam Cleaning 3,750 3,863 3,978 4,098 4,221 4,347 Pest Control 715 736 759 781 805 829 Security 17,099 17,612 18,140 18,685 19,245 19,822 Parking Lot Repairs 325 335 345 355 366 377 Center Lighting 4,170 4,295 4,424 4,557 4,693 4,834 Repairs & Maintenance 3,485 3,590 3,697 3,808 3,922 4,040 Landscape 17,673 18,203 18,749 19,312 19,891 20,488 Landscape Repair 15,771 16,244 16,731 17,233 17,750 18,283 Water/Sewer 35,042 36,093 37,176 38,291 39,440 40,623 Refuse 50,033 51,534 53,080 54,672 56,313 58,002 Pac Pell 4,689 4,830 4,975 5,124 5,278 5,436 Fire Alarms 3,502 3,607 3,715 3,827 3,942 4,060 Management Fee 74,318 76,972 79,134 80,076 79,497 79,127 Reserves for CAPEX 16,754 17,256 17,774 18,307 18,856 19,422 Total Operating Expenses 471,260 484,252 497,030 508,877 519,497 530,625 Net Operating Income 1,015,092 1,055,193 1,085,640 1,092,646 1,070,435 1,051,906 11 Tenant Improvements 0 23,484 67,156 32,782 38,492 Leasing Commissions 0 24,102 67,950 16,719 33,346 Total Leasing & Capital Costs 0 47,586 135,106 49,501 71,838 Acquisition/Disposition (15,038,400) 15,027,229 7.00% Resale Cap Cash Flow After Debt Service (15,038,400) $1,015,092 $1,007,607 $950,534 $1,043,145 $16,025,826 6.7% IRR
Rent Roll Rate & Amount per Year Changes Changes Suite Tenant Lease Start Lease End Sq. Ft. Bldg Share per Month on to Comments 353A Woodland Nails Nov-12 Oct-22 1,000 0.90% $22.95 Annually CPI $22,948.80 5% max $1.91 $1,912 Tenant has one remaining 5-year renewal option. Tenant pays prorata share of CAM + 10% admin fee. 353B Vacant 1,000 0.90% $18.00 - - Former Cricket Wireless $18,000 $1.50 $1,500 353C Woodland Smoke Shop Jul-14 Jun-20 1,000 0.90% $22.68 - - $22,680.00 $1.89 $1,890 353D Dan T's Custom Jewelry May-15 Apr-19 1,200 1.07% $21.02 Annually CPI $25,226.04 3% max $1.75 $2,102 353E Pizza Jul-17 Nov-22 1,320 1.18% $9.60 Dec-2019 $11.40 $12,672.00 Dec-2019 $0.80 Dec-2019 $1,056 Lease expired 7/31/17. Tenant is month to month. Tenant plans to vacate. Tenant has one 3-year renewal option. Tenant pays prorata share of CAM + 10% admin fee. Tenant pays prorata share of CAM + 10% admin fee. Tenant has two 5-year renewal options with $0.05 PSF/mo increases annually. Tenant pays prorata share of CAM + 10% admin fee. 353F Precision 6 MTM MTM 1,080 0.97% $18.77 - - $20,267 $1.56 $1,689 Tenant has been month to month since 10/31/15. Tenant pays prorata share of CAM with no admin fee. 353G Golden Dragon May-16 Apr-21 2,955 2.65% $19.74 Annually CPI $58,339.44 3% max $1.65 $4,862 353H Speedy Wash Jan-14 Jan-24 2,363 2.12% $10.16 Jul-18 $12.73 $24,000.00 Annually 2% yr 1-5 $0.85 2.5% yr 6-10 $2,000 353J Woodland Western Wear Nov-16 Oct-21 3,000 2.69% $9.76 Nov-2017 $9.91 $29,280 Nov-2018 $10.05 $0.81 Nov-2019 $10.21 $2,440 Nov-2020 $10.36 Tenant has one 5-year renewal option. Tenant pays prorata share of CAM with no admin fee. Subject to lease restructuring agreement. CAM reimbursement suspended until July 2018. Tenant has one 5-year renewal option. CAM charges are capped at $0.30 PSF with 1% annual increases. 12 353K Vacant 1,500 1.34% $18.00 - - See method: Net $27,000 10% Admin $1.50 $2,250
Rent Roll cont d Rate & Amount per Year Changes Changes Suite Tenant Lease Start Lease End Sq. Ft. Bldg Share per Month on to Comments 361A Togo's Mar-15 Mar-25 1,200 1.07% $22.80 Mar-2020 $25.08 Tenant Three 5-year has one renewal remaining options. 5-year $27,360 $1.90 $2,280 Rent increases 10% ea 5 yrs during the term and options. Pays prorata share of CAM + 10% admin fee. 361B Vacant 1,300 1.16% $21.00 - - See method: Net $27,300 10% Admin $1.75 $2,275 367 Raley's May-1987 May-22 60,114 53.82% $7.61 - - $457,500 $0.63 $38,125 375 Jo-Ann Fabrics Jan-12 Dec-19 12,024 10.77% $9.60 Jan-2020 $10.10 $115,430.04 Jan-2023 $10.60 $0.80 Jan-2026 $11.15 $9,619 Two remaining 5-year renewal options. T pays prorata share of CAM + 15% admin fee, excl tax & ins. % rent of 1.5% of gross sales. Four 3-year renewal options. Tenant pays prorata share of CAM w/no admin fee. 375A Sol Mexican Cuisine Mar-12 May-22 2,400 2.15% $15.00 Jun-2018 $15.60 $36,000.00 Jun-2019 $16.20 $1.25 Jun-2020 $16.80 $3,000 Jun-2021 $17.40 375B Pure Water Nov-14 Oct-19 1,400 1.25% $18.97 Annually CPI $26,559.96 5% max $1.58 $2,213 Tenant has one 5-year renewal option with $0.05 PSF/mo increases annually. Tenant pays prorata share of CAM + 10% admin fee. Tenant has one 5-year renewal option. Tenant pays prorata share of CAM, no admin fee. 375C Sears Jul-17 Jul-20 6,950 6.22% $6.36 Jul-2018 $6.42 $44,196 Jul-2019 $6.49 $0.53 Jul-2020 $6.55 $3,683 Tenant has two 3-year renewal options. Tenant pays prorata share of CAM + 10% admin fee. 375D Phillips Chiropractic Jan-2014 Dec-19 1,980 1.77% $22.52 Annually CPI $44,592.96 3% max $1.88 $3,716 Tenant has one 3-year renewal option. Full Service: Pays no expense reimbursement. 13
Rent Roll cont d Rate & Amount per Year Changes Changes Suite Tenant Lease Start Lease End Sq. Ft. Bldg Share per Month on to Comments 353A Woodland Nails Nov-12 Oct-22 1,000 0.90% $22.95 Annually CPI Tenant has one remaining 5-year 383A&B Country Waffles Feb-15 Feb-20 3,030 2.71% $20.32 Feb-2019 $20.52 $61,572.00 Feb-2020 $22.27 $1.69 $5,131 383C Helix Hearing Care Jan-14 Dec-19 1,950 1.75% $21.84 - - Full Service: $42,588.00 Pays no expense $1.82 reimbursement. $3,549 383D Edward Jones Jan-12 Dec-21 1,020 0.91% $21.60 Jan-2020 $22.03 $22,032.00 Jan-2021 $22.47 $1.80 $1,836 Tenant has one 5-year renewal option. Tenant pays prorata share of CAM, no admin fee. Tenant pays prorata share of CAM + 10% admin fee. 895 Oil Changers and Repa Feb-14 Jan-19 1,905 1.71% $14.17 - - $27,000 $1.18 $2,250 Tenant has one 5-year renewal option at rent to be negotiated. Tenant pays a flat $200 per month for "CAM". Total Occupied SqFt 107,891 Total Available SqFt 3,800 14
With decades of experience selling retail investment properties valued over $1.7 billion in Northern California and Northern Nevada, we are uniquely qualified to position this asset in a manner that will encourage strong offers from the most qualified and motivated investors. To learn more about us, please go to: www.corecre.com Presented by: John DuBois 916. 274. 4424 jd@corecre.com CA BRE #00702547 Jon Gianulias 916. 274. 4422 jg@corecre.com CA BRE #01227233 Mark Denholm 916. 274. 4404 md@corecre.com CA BRE #01437366 COPYRIGHT 2017. ALL RIGHTS RESERVED. CORE Commercial ( Agent ), CA BRE Lic. 01904661, has presented this brief, selected information pertaining to the Property and shall not be considered allinclusive or unchanged since the date of preparation. No warranty as to the accuracy or completeness is expressed or implied. The information has been received from sources believed to be reliable but is not guaranteed. Prospective purchasers and tenants should independently verify each item of information and have the same reviewed by its tax advisor and/or legal counsel. The Property is being offered on an as-is, where-is and with all faults basis unless otherwise specified. Owner reserves the right to withdraw this offering at any time, without further notice, with or without cause. 15
Westgate Shopping Center Woodland, California Exclusively Listed By: John DuBois 916. 274. 4424 jd@corecre.com CA BRE #00702547 16 Jon Gianulias 916. 274. 4422 jg@corecre.com CA BRE #01227233 Mark Denholm 916. 274. 4404 md@corecre.com CA BRE #01437366