Quail Park Building 520 [ www.capitalpacific.com ] Sierra Vista hospital is estimated to open march 1st, 2016 $12 billion national healthcare (subsidiary) tenant in 50% of the building 520 Plaza Drive Folsom, CA Dave Lucas dlucas@capitalpacific.com (415) 274-7390 CA BRE# 01389761 Dave Lucas Chris peters dlucas@capitalpacific.com (415) 274-7390 cpeters@capitalpacific.com CA BRE# 01389761 (415) 274-2703 CA BRE# 01339983 joe Caccamo jcaccamo@capitalpacific.com (415) 274-7394 CA BRE# 01191110 chris kostanecki ck@capitalpacific.com (415) 274-2701 CA BRE# 01002010
investment Overview QUAIL PARK BUILDING 520 IS A FULLY-LEASED, NEWER CONSTRUCTION SERVICE RETAIL BUILDING LOCATED IN THE DESIRABLE CITY OF FOLSOM, CA. The property sits along BLUE RAVINE ROAD, A MAJOR THoROUGHFARE. PRICE: $1,760,000 CAP: 7.00% Rentable SF...6,374 SF Price per SF...$276.12 Parcel Size... 8,124 SF YEAR BUILT...2007 Leased...100% net operating income...$123,256 National Healthcare services tenant 50% of the building is leased to Sierra Vista Hospital, a wholly owned subsidiary of Universal Health Services Inc, a publicly traded company listed on the NYSE as UHS with a current market cap of $12 billion. EXCELLENT TENANT MIX WITH ANNUAL INCREAsES The rent roll consists of a diversified, national and local tenant mix with annual increases in some of the leases. Professional center consists of tenants in the medical and financial businesses. MINIMAL MANAGEMENT Minimal management responsibilities: Quail Park Association manages the common areas of the shopping center. high quality construction Newer construction, high-quality building with handsome building finishes and mature landscaping. Prominent Location within center / Excellent Access The subject property is located at the main entrance to the center and is highly visible to all incoming traffic. The property has multiple access points with a turnaround/ traffic circle on Plaza Drive and a dedicated right-hand turn lane into the property on Blue Ravine Road. Affluent market / High Income demos The subject property is surrounded by a healthy mix of retail and residential properties. Average household incomes exceed $100K within a one, three, and five mile radius. quail park building 520 2
zoomed-out retail aerial Located on Blue Ravine Road with traffic counts in excess of 22,554 VPD Folsom MIddle School Sutter MIddle School FOLSOM SQUARE EB idw Blue rkway et Y AIL 54 D 22,5 eet enue P a Riley Stre oad ne R Ravi Str Oak Av t FOLSOM PREMIUM OUTLETS AILY Stree 19 D Sibley 15,2 QUAIL PARK ell ie air Pr Sandra J. Gallardo Elementary y Cit a Ro d d ar v ule m lso Fo Bo Prairie City Crossing Natoma Station Elementary Iron Po int Road Folsom High School 50 SACRAMENTO 50 quail park building 520 3
zoomed-in aerial quail park building 520 4
photos quail park is located in High Income Folsom, CA Building 520 Entrance to Center quail park building 520 5
income & expense Price: $1,760,000 NEW LOAN SCENARIO: Capitalization Rate: 7.00% Current Loan Amount $1,232,000 Price Per Square Foot: $276.12 Interest Rate 4.25% Down Payment 30% $528,000 Amortization 25 Year Loan Amount 70% $1,232,000 Term (Fixed) 5 Year Total Leased (SF): 100.00% 6,374 Debt Service $80,091 Total Vacant (SF): 0.00% - Monthly Debt Service $6,674 Total Rentable Area (SF): 6,374 Pre-Tax Cash Flow $43,165 INCOME PSF Debt Coverage Ratio 1.54 Scheduled Rent $25.48 $162,435 Cash on Cash 8.18% Estimated Water Recovery $0.44 $2,800 Principal Paydown (Year 1) $28,277 Projected CAM Expenses over Base Year $0.04 $250 Total Return $71,442 Projected Tax Expenses over Base Year $0.63 $4,019 Yield 13.53% EFFECTIVE GROSS INCOME $169,504 Market Vacancy Reserve (3%) ($5,085) ADJUSTED GROSS INCOME $164,419 EXPENSES PSF Current Property Taxes* $1.12 ($7,127) Increased Property Taxes** $1.70 ($10,859) Insurance (Estimated) $0.24 ($1,500) Association Dues (Estimated) $2.04 ($12,995) Water & Sewer $0.13 ($850) Electrical (Lighting) $0.13 ($850) Safety & Security $0.10 ($660) HVAC Contract $0.07 ($450) MISC R&M $0.02 ($150) Property Management $0.90 ($5,722) TOTAL OPERATING EXPENSES $6.46 ($41,163) NET OPERATING INCOME $123,256 *Property Taxes base year recovery are projected to be 37.01% of the increase in the property taxes (**)(Ultrasound and Innovative Tax) **Property Taxes currently assessed at $7,126.82 and have an additonal asessment of $10,630.14 which expires in 2017. ***Property Taxes will increase to 1.058% of $1,706,000 which will equal $17,986 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. CASH FLOW & DEBT SERVICE quail park building 520 6
rent roll Trade Name Sq. Ft. Percent of GLA Lease Start Lease Expiration Monthly Base Rent Monthly Rent/SF Annual Rent/SF Annual Rent Security Deposit Invision 3D4D Ultrasound 520-130 859 13.48% 5/1/2014 9/30/2018 $1,503.25 $1.75 $21.00 $18,039.00 $2,500.00 10/1/2015 4/30/2016 $1,503.25 $1.75 $21.00 5/1/2016 4/30/2017 $1,546.20 $1.80 $21.60 5/1/2017 4/30/2018 $1,589.15 $1.85 $22.20 5/1/2018 9/30/2018 $1,632.10 $1.90 $22.80 Option 1 10/1/2018 9/30/2021 CPI CPI CPI Healing Path Counseling Services, LLC 520-140 851 13.35% 8/1/2015 10/30/2019 $1,802.66 $1.75 $21.00 $21,631.92 $1,938.82 11/1/2015 10/31/2016 $1,802.66 $1.75 $21.00 11/1/2016 10/31/2017 $1,845.21 $1.80 $21.60 11/1/2017 10/31/2018 $1,896.27 $1.86 $22.32 11/1/2018 10/31/2019 $1,938.82 $1.91 $22.92 Option 1 11/1/2019 10/31/2023 FMV FMV FMV Innovative Tax Solutions, Inc. 520-120 1,500 23.53% 11/1/2011 2/28/2017 $2,700.00 $1.80 $21.60 $32,400.00 $4,500.00 BHC Sierra Vista Hospital, Inc. 520-100 3,164 49.64% 3/1/2016 2/28/2019 $7,530.32 $2.38 $28.56 $90,363.84 $7,530.32 A wholly owned subsidiary of Universal Option 1 3/1/2019 2/28/2022 $7,530.32 $2.38 $28.56 Health Services NYSE: "UHS" Current Totals: 6,374 100.00% Monthly Rent $13,536.23 Annual Rent $162,435 Leased 6,374 100.00% Vacant 0 0.00% This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. quail park building 520 7
site plan BUILDING 520 Site Plan Key Parcel outline: Building Area: 4,774 sf Ingress/Egress: Sola Salon Hisham soliman MD invision 3d4d healing path innovative tax Sierra Vista Hospital the place within horizon wealth the center for living arts skinovative pacific institue of Music Willis & walsh studio 7 salon Medical revolutions Plaza Drive bayside church arthur murry dance studio zuda yoga true north cycling Blue Ravine Road 22,554 DAILY This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. quail park building 520 8
parcel map quail park building 520 9
tenants Sierra Vista Hospital Sierra Vista Hospital provides a full range of inpatient and outpatient psychiatric services for adolescents and adults. Inpatient care includes separate programs for adults and adolescents with 24 hour nursing, daily groups, and oversight by a psychiatrist. Sierra Vista Hospital is a wholly owned subsidiary of Universal Health Services Inc, a national health care provider and a publicly traded company listed on the NYSE as UHS with a current market cap of $12 billion. Innovative Tax Innovative Tax Solutions specializes in individual and small business (Partnership, LLC, and Corporation) tax returns. They pride themselves on communication, working thoroughly with clients, perfection, and professionalism. They also offer workshops focusing on various tax and financial topics to provide full financial support and education to their clients. Invision 3d/4d InVision 3D/4D Ultrasound has been in business since 2004. They are a boutique-style 3D/4D imaging center that allows parents-to-be, family, and friends an opportunity to see their unborn baby in motion and in pictures using the most modern imaging technology. InVision facilities offer gender determinations, 3D/4D images and DVDs, baby showers, CPR classes, and parenting and childbirth classes. They are located in ten locations across Northern California. Healing Path Healing Path Counseling Services specialize in counseling married couples, individuals, and adolescents. Their staff consists of two highly licensed therapists who specialize in individual, family, and couples therapy. quail park building 520 10
location & Demographics Folsom, CA Overview Folsom is located in Sacramento County, California and is part of the Sacramento-Arden- Arcade-Roseville Metropolitan Statistical Area. The population of Folsom was 72,203 at the 2010 census. Aside from being commonly known for its famous Folsom Prison, Folsom is home to every kind of outdoor recreation and benefits from its location on the American River Parkway. The city is conveniently located between Sacramento and Lake Tahoe and is near hundreds of Sierra foothill wineries. The city of Folsom has the 3rd lowest unemployment rate in the U.S. at 3.1% as of June 2015. top employers Intel California State, Prison, Sacramento Folsom State Prison Verizon Population 1-Mile 3-Mile 5-Mile 2010 10,421 71,597 139,940 2014 10,679 73,181 143,794 2019 11,036 75,834 149,388 2015 Household incomes 1-Mile 3-Mile 5-Mile Average $115,621 $103,013 $112,659 Median $101,462 $83,392 $86,925 32 MIN 23 Miles Sacramento Folsom quail park 22,554 DAILY San francisco Bay Area 2 HR 5 MIN 108 Miles quail park building 520 11
quail Park shopping center - a prominent retail property quail park building 520 12
A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ www.capitalpacific.com ] dave lucas dlucas@capitalpacific.com (415) 274-7390 CA BRE# 01389761 chris peters cpeters@capitalpacific.com (415) 274-2703 CA BRE# 01339983 joe caccamo jcaccamo@capitalpacific.com (415) 274-7394 CA BRE# 01191110 chris kostanecki jcaccamo@capitalpacific.com (415) 274-2701 CA BRE# 01002010 Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. zeb ripple rick sanner zandy smith jack navarra john andreini bob sanner gregg steele karla zens [ Copyright 2015 Capital Pacific ]