2628 El Camino Avenue...2628 EL CAMINO AVENUE | 2 | INVESTMENT SALE. Offering Summary. CBRE, as...

EXCLUSIVE

LISTING

AGENTS

2628 El Camino AvenueS A C R A M E N T O , C A L I F O R N I A

KEVIN LARSCHEIDExecutive Vice President+1 916 781 4818 [email protected] Lic. 00816790

SCOTT RUSHFirst Vice President+1 916 781 4802 [email protected] Lic. 01228497

COLIN BROWNSales Assistant+1 916 781 4858 [email protected] Lic. 02032520

2628 EL CAMINO AVENUE | 2 | INVESTMENT SALE

Offering SummaryCBRE, as exclusive agent, is pleased to present the opportunity to acquire the 100% fee simple interest in 2628 El Camino Avenue, Sacramento, Sacramento County, California. This ±17,785 sq. ft., single story multi-tenant office building was built in 1960 and is situated on approximately 2.19 acres. The asset is currently 93.6% leased to 15 tenants, providing an investor with a long history of stable occupancy and cash flow.

This garden-office complex consists of four individual buildings with 18 suites and is located in a neighborhood commercial setting on a major street in Sacramento and is surrounded by well-maintained single family homes and apartments. The property is located near Interstate 80 and major shopping centers, with good visibility and signage on El Camino Avenue, just east of Fulton Avenue and has ample parking around the building.

Four one-story buildings surround a landscaped breezeway, which includes two common area restrooms. Most of the suites also have their own in-suite restroom. There is one gas meter and one electric meter serving the entire four building complex. Most of the existing tenants are long term, including two dental offices, three dental labs, two hair salons, a chiropractor, an aesthetician, an insurance agent, two accountants, and three social service offices. Leases are all on a full service basis except some tenants provide their own janitorial service.

According to Costar, 2628 El Camino Avenue is leased at below-market rental rates and is priced well below replacement cost, providing an investor a great opportunity for increasing cash flow in the near future! Additionally, the building coverage ratio is only 16.5% offering a buyer with a potential value add opportunity with new construction.

T h e O f f e r i n g


Property Details

BUILDING ADDRESS 2628 El Camino Avenue Sacramento, CA 95841

ASSESSOR’S PARCEL NO. 279-0011-007

COUNTY Sacramento County, California

PROPERTY TYPE General Office Building

BUILDING GROSS SQ. FT. ±17,785* SF

RENTABLE SQ. FT. ±17,785* RSF

LAND AREA ±2.19 Acres

PERCENT LEASED 93.6%

NUMBER OF TENANTS 15

YEAR BUILT 1960

NUMBER OF BUILDINGS Four

NUMBER OF STORIES One

ZONING BP, Sacramento

USE General Office, including medicas uses

* Approximate Sq.Ft. - according to the property Report at RealQuest.com.

Investment Highlights

LOCATIONLocated near Interstate Highway 80 and three major shopping center and is only 15 minutes from Downtown Sacramento and five minutes from Haggin Oaks Golf Course.

CASH FLOWThe property features 15 tenants; with most tenants on a month-to-month basis. However, five tenants are on leases that run at least through 2020. The majority of the month-to-month tenants have been long-term occupants.

BELOW REPLACEMENT COSTConsidering the asking price of $2,160,000 ($121.45 PSF), this offering is priced well below replacement cost. The building coverage ratio is only 16.5% allowing for possible building expansion.

DIVERSE GROUP OF TENANTSTenants at the property include dentists, dental labs, accountants, hair stylists, chiropractors, social services, and an insurance business.

GROWING POPULATIONSacramento County’s population is currently ±1,513,201 people and is projected to increase to nearly ±1,584,703 residents by 2022. Sacramento County has been one of the fastest growing re-gions in California.

TOTAL NUMBER OF HOUSEHOLDSIn 2017, within a 5-mile radius of the Property, the total number of households was estimated to be 138,301 and is projected to be 143,565 in 2022. The annual household growth rate between the year of 2010 - 2017 is 0.59%.



BUILDING SYSTEMS

UTILITY PROVIDERS

FLOOD AND EARTHQUAKE

CONSTRUCTION Wood frame

HVAC 14 split units (rooftop)

ELECTRICITY SMUD

GAS PG&E

SEWER Sacramento County

WATER Sacramento Suburban Water District

TRASH Atlas Disposal

FLOOD ZONE Zone X – The property is not located in a flood zone.

EARTHQUAKE Not in an earthquake fault zone.

Property Details (continued)



Property Photos



PRICING $2,160,000

PRICE PER GROSS SQ. FT. $121.45

NET OPERATING INCOME $10,648

CAP RATE 6.0 %

RENTABLE SQ. FT. ±17,785* RSF

GROSS BUILDING SQ. FT. ±17,785* SF

LAND AREA ±2.19 Acres

CURRENT OCCUPANCY 93.6% Leased

YEAR BUILT 1960

ASSESSOR’S PARCEL NO. 279-001-007

ZONING BP, Sacramento

USE General Office including medical uses

LEASE TYPES FSG

Financial Summary

F i n a n c i a l O v e r v i e w

income & expense summary

SCHEDULED GROSS INCOME $238,500

Adjusted Gross Income $238,500 Less Vacancy (Actual) $0

EFFECTIVE GROSS INCOME $238,500

OPERATING EXPENSES Taxes $26,449 Direct Levies $1,248 Insurance $4,700 Utilities $31,300 Water/Sewer/Garbage $9,000 Janitorial $10,000 Management Fee $7,155 Repairs & Maintenance $10,000 Landscaping $8,000 TOTAL OPERATING EXPENSES ($107,852)

NET OPERATING INCOME1 $130,648

1 Assumptions: Taxes are based on sale price. Management fee is based on 3% of EGI. All other expenses are actual 2017 provided by Seller.

INCOME - ACTUAL

* Approximate Sq.Ft. - according to the property Report at RealQuest.com.


F i n a n c i a l O v e r v i e w

Rent Roll

Lease Term Base RentSuite Tenant Sq. Ft.% of Total

Bldg.Lease Term

Begins EndsRent / Mo. Annual PSF /Yr. PSF /Mo.

Increas-es

Lease Type

Business Type

A1 Genesis Dental 1,180 6.6% 1998 MTM $1,400 $16,800 $14.24 $1.19 FSG Dental Lab

A3 Dental Masters 315 1.8% 2012 MTM $350 $4,200 $13.33 $1.11 FSG Dental Lab

A5 American Dental 625 3.5% 2006 MTM $850 $10,200 $16.32 $1.36 FSG Dental Lab

A6 MU’EED, Inc. 1,070 5.9% 2014 MTM $1,225 $14,700 $13.74 $1.14 FSG Social Services

A7 Valerie Aiken 220 1.2% 2016 MTM $300 $3,600 $16.36 $1.36 FSG Tax Accounting

A8 Sandra Riley 600 4.4% 2017 2020 $800 $9,600 $16.00 $1.33 FSG Esthetician

A14 John Taylor 655 3.7% 1991 MTM $800 $9,600 $14.66 $1.22 FSGFarmers Insurance

B1 Vacant 1,960 10.9% 2018 2019 $2,000 $24,000 $12.24 $1.02 FSGRent Guarantee

B2 No Stress Services 1,130 6.3% 2017 2020 $1,000 $12,000 $10.62 $0.88 FSG Accounting

B6 Badie et al 1,230 6.8% 2006 MTM $1,800 $21,600 $17.56 $1.46 FSG Hair Salon

B7 Miguel Cortez 800 4.4% 2013 MTM $1,000 $12,000 $15.00 $1.25 FSG Dentist

C1 Gurwinder Bath 1,115 6.2% 2017 2020 $1,200 $14,400 $12.91 $1.08 FSG Chiropractor

C2 Vacant 880 4.9% - - - - - - - Unimproved

C3 Owner 265 1.5% - - - - - - -On-Site Manager

C10 Pereira/Patrick 1,740 9.7% 2017 2027 $2,500 $30,000 $17.24 $1.44$3,000 in 2022

FSG Dentist

D1 Friend’s for Survival 800 4.4% 1995 MTM $900 $10,800 $13.50 $1.13 FSG Social Services

D5 Phillips et vir 600 3.3% 2008 2018 $650 $7,800 $13.00 $1.08 FSG Hair Salon

D18 Widowed Persons Association 2,600 14.5% 1998 2023 $3,100 $37,200 $14.31 $1.19 FSG Social Services

Total Leased Square footage 16,640 93.6% Total Leased Income $238,500

Total Rentable Square footage 17,785 100%


M a r k e t O v e r v i e w

Sacramento, California Overview

Sacramento County has been one of the fastest growing regions in California for the last 25 years.

According to the State Department of Finance, Sacramento County population is currently projected to be 1,513,201 people and is projected to increase to nearly 1,584,703 residents by 2022.

With a qualified workforce and strong business sector, Sacramento County has a 7.3% unemployment rate which is one of the lowest unemployment rates among California cities.

Driving the employment rate is a 10% increase in job growth in Sacramento over the past five years, to an approximate of 60,000 jobs*. In the first quarter in 2017 the labor market job growth is well above the California and U.S. averages.

Additionally, Sacramento reports that their business climate is noted for being among the most affordable cities to do business in the state with a supportive climate for entrepreneurs.

* www.labormarketinfo.edd.ca.gov

Sacramento State Capitol


9,061

91,508

218,328

1-MILE 3-MILE 5-MILE

M a r k e t O v e r v i e w

592,462EMPLOYEES**

1,513,2012017 TOTAL POPULATION**

15.6 millionANNUAL REGIONAL VISITORS**

45,604BUSINESSES**

Market Demographic Quick Facts

SACRAMENTO COUNTY ANNUAL SALARY BREAKDOWN***Over $100K. 27% $50K-$75K. 18% $25K-$35K. 9.2%$75K-$100K. 13.3% $35K-$50K. 12.7% Under $25K. 19.8%

LARGEST NEARBY EMPLOYMENT INDUSTRIES IN SACRAMENTO*

Based on data from 2017 / Costar.

SOURCES:

*CBRE Fast Maps, 2017**CBRE Research***Costar.com

TOTAL POPULATION WITHIN VARYING RADIUS***

Healthcare/Social Asst.,

14.7%

Retail Trade, 13.0%

Professional/Scientific/Tech. Svc.,

8.0%

Educational Services,

7.5%

Accomodation/Food Services,

7.2%

Finance/Insurance,

7.0%

Manufacturing, 6.6%

7.2%

2 0 , 0 2 7

1 4 2 , 6 3 0

3 7 1 , 5 5 5

541,711TOTAL HOUSING UNITS**


L o c a t i o n M a p s

2628

2628

© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. All marks displayed on this document are the property of their respective owners. PN 255008


P a r c e l M a p V i e w

2628


2628

EL CAMINO AVE

A e r i a l V i e w

FULT

ON

AVE

EXCLUSIVE

LISTING

AGENTS

KEVIN LARSCHEIDExecutive Vice President+1 916 781 4818 [email protected] Lic. 00816790

SCOTT RUSHFirst Vice President+1 916 781 4802 [email protected] Lic. 01228497

COLIN BROWNSales Assistant+1 916 781 4858 [email protected] Lic. 02032520

EL CAMINO AVE

FULT

ON

AVE

ARDEN WAY

ETH

AN

WAY

County of Sacramento

2628 El Camino Avenue...2628 EL CAMINO AVENUE | 2 | INVESTMENT SALE. Offering Summary. CBRE, as...

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