California Fish Grill - Sutter Health - HealthMarkets …...Citrus Heights has established itself as...

MULTI-TENANT NNN OUTPARCELSMART & FINAL-ANCHOREDCalifornia Fish Grill - Sutter Health - HealthMarkets Insurance

5406 Sunrise Blvd. | Citrus Heights, CA 95610

Capital Nursery Plaza | Citrus Heights, CA | PG. 2

PROPERTY OVERVIEW

We are pleased to offer to qualified investors an opportunity to purchase fee simple a 100% occupied, 6,184 SF three-tenant strip center located as an outparcel to Smart & Final Extra and adjacent to a McDonald’s new prototype store. This newly constructed building offers investors a strong tenant mix of internet resistant retailers along with long term stable income from California Fish Grill which executed a new 10 year lease that includes attractive 10% rental increases every 5 years. Exceptionally well located at the intersection of two of the main corridors through Citrus Heights, CA; this property benefits from nearly 81,147 ADT and has excellent supporting demographics of 132,802 residents within a 3-mile radius and an AHHI of $83,668 within a 3-mile radius. This is a rare opportunity to acquire a class A multi-tenant NNN retail building, located on exceptional real estate, in a dense California market offering little downside risk to potential investors.

PROPERTY DESCRIPTION

PRICING

List Price $4,569,848NOI $239,917CAP Rate 5.25%Taxes NNNInsurance NNNCAM NNN


TENANT LEASE TYPE

BLDGSF

LEASE START

LEASE EXPIRATION

CURRENT RENT

ANNUAL RENT

PSF

RENTAL ADJUSTMENT OPTION PERIODS

California Fish Grill NNN 3,011

Lease Commencement 6/25/2018

Rent Commencement Jan-19Seller to Provide Rent Credit

11/30/2028 $123,451 12/1/2023 $135,796

2 - 5 YR Options 10% Increases Each Option

12/1/2028: $149,375.71 12/1/2033: $164,310.27

Sutter Health NNN 1,865 5/14/2018 5/31/2023 $69,378 None2 - 3 YR Options 6/1/2023: FMRV 6/1/2026: FMRV

HealthMarkets Insurance NNN 1,308 6/1/2018 5/31/2021 $47,088 None

2 - 3 YR Options 6/1/2021: FMRV 6/1/2024: FMRV

Totals 6,184 $239,917

RENT ROLL


INVESTMENT HIGHLIGHTS

• Rare California Multi-Tenant NNN Investment - Low Downside Risk

• Exceptional Real Estate Fundamentals - Dense Infill - Excellent Visibility

• Outparcel to Smart & Final - Directly Adjacent to McDonald’s New Prototype Store

• Strong Tenant Mix - Newly Executed Leases - Internet Resistant Retailers

• +/-81,147 ADT - Intersection of Sunrise Blvd & Madison Ave

• Newly Constructed Building - 2016 Build - Pride of Ownership

• Surrounding Retailers - Smart & Final Extra, McDonald’s, Rite Aid, Jimmy John’s, The Habit

Burger Grill, JoAnn, Olive Garden, Nation’s Giant Hamburgers, 76 Gas Station, and More

• Ideal 1031 Exchange Asset - Ease of Management - Limited Landlord Responsibilities

• Diversified Mix of Co-Tenants - Recently Constructed Center

• Available Free & Clear of Existing Debt - Pride of Ownership



TENANT OVERVIEW

SUTTER HEALTH

Sutter Health is a not-for-profit health system in Northern California, headquartered in Sacramento. It includes doctors, hospitals and other health care services in more than 100 Northern California cities and towns. Major service lines of Sutter Health-affiliated hospitals include cardiac care, women’s and children’s services, cancer care, orthopedics and advanced patient safety technology.

HEALTH MARKETS INSURANCEHealth Markets is owned

by Blackstone Group

HealthMarkets Insurance Agency is one of the largest independent health insurance agencies in the United States and is licensed to market and sell health insurance in all 50 states and the District of Columbia. We distribute health, Medicare, life and supplemental insurance products from more than 200 insurance companies with thousands of plans available nationwide to individuals and families, seniors, small business owners and their employees.

CALIFORNIA FISH GRILLCalifornia Fish Grill Inc operates as a restaurant. The Restaurant specializes in seafood. California Fish Grill offers tacos, salads, wraps, soup, beverages, and desserts. Opening in 1998, this fast casual emerged early in the segment’s rise. That experience, plus its focus on seafood and adult beverages, has helped the value-minded

concept thrive and grow. All units are company-owned, and its founder remains on the board of directors. The chain promotes “healthy indulgence” with a range

of fried and grilled options.

ALL CORPORATELY-GUARANTEED LEASES

SUNRISE BLVD. 81,147 CPD at Intersection


Parcel Details

Parcel Building Size Land Size

233-0044-015 6,184 SF 0.518 Acres

PARCELDETAILS

SUNR

ISE

BLVD

. ALTA SUNSIRE DR.

MADISON AVE. 81,147 CPD at Intersection

SUNRISE MALLCITRUS TOWN CENTERMARKETPLACE AT BIRDCAGESUNRISE VILLAGE SHOPPING CENTER



SACRAMENTO CALIFORNIA

ABOUT SACRAMENTOSacramento is the capital city of the U.S. state of California and the seat of government of Sacramento County. It is located at the confluence of the Sacramento River and the American River in the northern portion of California’s expansive Central Valley. With an estimated population nearly 500,000, Sacramento is the sixth-largest city in California and the 35th largest city in the United States.

Sacramento is the core cultural and economic center of the Sacramento metropolitan area which includes seven counties with an estimated population more than 2.5 million. Its metropolitan area is the fourth largest in California after the Greater Los Angeles Area, San Francisco Bay Area, and the San Diego metropolitan area, as well as the 25th largest in the United States. Sacramento was cited by Time magazine as America’s most ethnically and racially integrated city in 2002.

Sacramento State is the largest local university. It is one of the twenty-three campuses of the California State University system. Drexel University Sacramento is located in Downtown, Sacramento. University of the Pacific’s McGeorge School of Law is located in the Oak Park neighborhood. In addition, the University of California, Davis is located in nearby Davis, 15 miles (24 km) west of the capital. The UC Davis Medical Center, a world-renowned research hospital, is located in the city of Sacramento.

Metro Population

2.5 Million

MARKET OVERVIEW

With exceptionally strong demand throughout the current cycle, retail vacancies have compressed significantly. Construction has been steady—albeit limited in scope—but 2017 emerged as easily the strongest year of the cycle for new deliveries. Sacramento’s average rents, just a fraction of those in the Bay Area, continue to outpace the tepid long-term average. Investment reached a new high in 2017, with more than $900 million of transactions.

Sacramento’s increasingly costly housing market appears to be having minimal impact on the retail environment here, as demand for retail space has been positive every year in this cycle. Job growth has largely outpaced the national average since 2012, and the unemployment rate as of March 2018 was about in line with the national mark. In this relatively healthy economy, vacancy has steadily compressed since reaching a low-double-digit peak in 2010 and was more than 200 basis points below the historical average as of 18Q1.

Even with several years of positive rent growth, asking rents still trail the prerecession peak by about 20%. Compared with nearby metros, Sacramento’s average rents are about half of those in San Francisco, and about 30% less than East Bay’s.

SACRAMENTO CALIFORNIA


ABOUT CITRUS HEIGHTSCitrus Heights, with a population of 87,432 is a unique established community in Sacramento County. Conveniently located between downtown Sacramento and Roseville, Citrus Heights is a short commute to nearly all greater Sacramento area neighborhoods, such as Rancho Cordova, Folsom, Sacramento, and Rocklin, providing an impressive employment pool.

Citrus Heights has established itself as an important employment hub in the Sacramento region with its solid base of small businesses, retail chains, and food service establishments and its prime location between both Interstate 80 and Highway 50. With an ongoing commitment to providing high-quality, economical, responsive services to the local community, the City is well positioned for future commercial redevelopment, neighborhood enhancements, and positive changes.

BUSINESS & SHOPPINGWithin 5 miles of Citrus Heights is a population of more than 360,642 people included 136,419 households, according to Claritas. Citrus Heights is a part of the overall Sacramento Metropolitan area.

Sunrise MarketPlaceCitrus Heights is home to a bustling retail and service industry. The Sunrise MarketPlace, a business improvement district, is the center of the city’s business activity, offering a wide variety of retail, dining, and service establishments. With over 600 businesses, including the Sunrise Mall, Citrus Heights offers major department stores, specialty stores, and service businesses.

CITRUS HEIGHTS CALIFORNIA


TOP EMPLOYERS

3-MILE RADIUS

137,523Population 2017

52,368Households 2017

5,275Businesses

84,986Avg. Income

In 2016, a total of 1,010 homes sold in Citrus Heights with a median sales price of approximately $285,000 (Metrolist, 2017). Citrus Heights provides an affordable living environment with quality services, central within the Sacramento region.


Income 1-MILE 3-MILE 5-MILE

Avg. Household Income (2017) $79,558 $84,986 $80,833

Median Household Income (2017) $60,351 $66,156 $62,558

Business Facts 1-MILE 3-MILE 5-MILE

Total # of Businesses (2017) 1,093 5,275 12,706

Total # of Employees (2017) 9,469 39,754 110,949

$$Affluent Neighborhood

$83,668 AHHI Within 3-Mile Radius


Population 1-MILE 3-MILE 5-MILE

Estimated Population (2017) 15,843 130,702 310,360

Projected Population (2022) 16,702 137,523 326,759

Households 1-MILE 3-MILE 5-MILE

Estimated Households (2017) 6,753 52,368 122,462

Projected Households (2022) 7,115 55,083 128,931

StrongDemographics

132,802Residents

Within 3-Mile Radius


This Offering Memorandum contains select information pertaining to the business and affairs of Capital Nursery Plaza - Citrus Heights, CA. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of Capital Nursery Plaza - Citrus Heights, CA or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

Colliers International | 3 Park Plaza, Suite 1200 | Irvine, CA 92614 | Snyder/Carlton Team

Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its

licensor(s) 2015. All rights reserved

FOR MORE INFORMATION, CONTACT:

Jereme SnyderExecutive Vice PresidentLicense No. [email protected]

Eric CarltonExecutive Vice PresidentLicense No. [email protected]

Local AgentGreg ThomasSenior Vice President License No. [email protected]

Spencer O’DonnellAssociate Vice PresidentLicense No. [email protected]

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