NOW AVAILABLE: Adjacent Kmart (Bank REO) OffERINg …corecre.com/investment/ElvertaCrossing.pdfThe...
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Listed for Sale Exclusively by: Jon Gianulias 916.274.4422 [email protected] Lic. No. 0127233 John DuBois 916.274.4424 [email protected] Lic. No. 0127233 Mark Denholm 916.274.4404 [email protected] Lic. No. 0127233 NOW AVAILABLE: Adjacent Kmart (Bank REO) OFFERING MEMORANDUM ELVERTA CROSSING SACRAMENTO, CA $9,000,000
Transcript of NOW AVAILABLE: Adjacent Kmart (Bank REO) OffERINg …corecre.com/investment/ElvertaCrossing.pdfThe...
Listed for Sale Exclusively by:
Jon [email protected] Lic. No. 0127233
John [email protected] Lic. No. 0127233
Mark [email protected] Lic. No. 0127233
NOW AVAILABLE: Adjacent Kmart (Bank REO)
OffERINg MEMORANduM
ELVERTA CROSSINgSACRAMENTO, CA
$9,000,000
Jon Gianulias
John DuBois
Mark Denholm
Elverta Crossing is a 120,000 square foot grocery-anchored neighborhood center located at the intersection of Watt Avenue and Elverta Road in North Highlands (Sacramento). This destination center is anchored by FoodMaxx, which has been in this location on a month-to-month basis since 2006. Elverta Crossing includes four parcelized pads allowing flexibility in retention and exit strategies. Wal-Mart is located immediately to the south.
The former Kmart building and its parcel within Elverta Crossing are separately owned, and are also listed for sale by Retail West. The Kmart property was owned by an entity unrelated to the owner of this offering, whose lender recently foreclosed and took the property as bank-owned REO. The Kmart building has been vacant since 2003.
Elverta Crossing has excellent visibility from the heavily traveled, six-lane thoroughfare of Watt Avenue with an average traffic count of 60,000 vehicles per day at the intersection. Watt Avenue connects the North Highlands submarket to Interstate 80 and Highway 50 providing excellent regional access. Both Watt Avenue and Elverta Road are projected to significantly increase in traffic counts and consumer spending with the addition of nearly 7,000 acres of planned residential, adding up to 60,000 new residents in the immediate vicinity.
• Value-Add/Redevelopment opportunity of an established Neighborhood Center
• Four separate parcels offer flexibility in ownership strategies
• To Be Delivered Free and Clear of Debt
• Adjacent Kmart available for sale or lease separately
COPYRIGHT © 2012. ALL RIGHTS RESERVED, DISCLOSURE AND REPRODUCTION IS PROHIBITED. CORE Commercial (“Agent,” 2264 Fair Oaks Blvd, Sacramento 95825, DRE No. 01904661) presents this memorandum to assist the recipient in evaluating this property’s suitability for investment. This confidential material contains brief, selected information pertaining to the Property and shall not be considered all-inclusive 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. Agent disclaims all liabilities in connection with any inaccuracies or incompleteness. Buyer should independently verify each item of information and have the same reviewed by its tax advisor and/or legal counsel. You agree that (a) the materials are of a highly confidential nature and will be held in the strictest confidence or shall be returned to Agent upon request; (b) you shall not contact any property manager, employee or tenant of the Property regarding the enclosed materials or the Property, without prior approval of Agent; and (c) you understand and agree that Agent represents Seller and not Buyer. Neither Seller nor Agent shall have any obligation to pay any commission, finder’s fee, or other compensation to any broker or other person dealing with Buyer. You may provide information to persons retained for the purpose of evaluating the Property after first obtaining a signed confidentiality agreement from such persons to keep such information confidential. You shall defend, indemnify and hold harmless Seller, Agent and its affiliates from and against any claims, demands, damages, or liabilities, including reasonable attorneys’ fees, relating to any claim for a commission, finder’s fee or other compensation by any broker or other person dealing with the Buyer. The Property is being sold on an “as-is, where-is” and “with all faults” basis. Seller reserves the right to withdraw the Property from consideration for sale at any time, with or without cause, and without further notice.
Jon Gianulias
John DuBois
Mark Denholm
Offering Summary
Price $9,000,000
2012 NOI $823,312(in-place)
2012 Cap Rate 9.1%(in-place)
Proforma NOI $1,134,049
Proforma Cap Rate 12.6%
Location 8065WattAve,Sacramento,CA
Year Built 1991
gross Leasable Area ±119,998SF
Land Area ±11.42Acres
Existing financing None
Price BestOffer
Building Area ±86,479SF
Price Per Sq. ft. $-
Land Area ±7.91Acres
Price PSf Land $-
Location 8135WattAvenueSacramento,CA
WATT
AVE - 3
1,100 V
Pd
ELVERTA ROAd - 20,700 VPd
OffERINg
fORMER KMART (OffEREd SEPARATELY) OffERINg
Elverta Crossing former Kmart
Jon Gianulias
John DuBois
Mark Denholm
financial Summary
Elverta Crossing (Excluding Former Kmart Property)
Valuation Summary In‐PlaceStatic
Proforma
Min. Rent, Leased 1 92,698 SF 1,020,529 1,031,054Min. Rent, Vacancy 27,300 SF 362,700NNN, Leased 239,078 241,726NNN, Vacancy 118,200
Total Gross Income $1,259,607 $1,753,680Vacancy Allowance 2 10% (175,368)
Effective Gross Income $1,259,607 $1,578,312
ExpensesCommon Area Charges 3 276,555 276,555Property Taxes (Est.) 96,390 96,390Insurance 4 $0.35/SF/Yr 31,860 31,860Mgmt Fees 5 2.5% 31,490 2.5% 39,458
Total Expenses (436,295) (444,263)
Net Operating Income $823,312 $1,134,049
Footnotes1 Proforma assumes 100% occupancy.2 Vacancy Factor applied to achieve economic net, no exclusions.3 Estimate based on past income/expense statements.4 Property Policy of $0.20/sf/yr (excludes self‐insured anchor) and GL Policy of $0.15/sf/yr.5 Not directly reimbursed; 10‐15% admin fee applied per leases.
Jon Gianulias
John DuBois
Mark Denholm
elverta crOSSing and Wal-mart Supercenter
former
(nap)WATT AVE
ELVER
TA R
OA
d
Jon Gianulias
John DuBois
Mark Denholm
parcel map and Site plan
former
(nap)
Indicates Vacancy
Jon Gianulias
John DuBois
Mark Denholm
rent rOll
Suite Tenant Sq Ft (±) Share Start End Annual Monthly $/SF On To Options / Comments
8065 FoodMaxx 49,950 41.6% Dec‐91 MTM $399,600 $33,300 $0.67 MTM since 2006
8031 Goodwill Industries 20,000 16.7% Oct‐04 Oct‐14 $143,640 $11,970 $0.60 Option 1 $12,567 2, 10‐yr options at fixed rentsOption 2 $13,200
8045 Taco Bell (Ground Lease) 2,500 2.1% Oct‐91 Oct‐16 $66,550 $5,546 $2.22 Option 2 $7,667 1, 10‐yr options at fixed rent
8075 Perko's 3,461 2.9% May‐94 May‐14 $87,840 $7,320 $2.11 1, 5‐yr option at FMR, > $8,052/mo
8101 KFC (Ground Lease) 2,887 2.4% May‐93 May‐13 $72,996 $6,083 $2.11 Option Market 1, 10‐yr option at FMR
2925 William J Black, DDS 2,400 2.0% Oct‐96 Feb‐15 $48,056 $4,005 $1.67 Mar‐12 $4,125 recently extended for 5 ys with 3% annual bumpsAnnually 3%
8009 Lisa's Hair & Nails 1,100 0.9% Mar‐10 Sep‐13 $13,596 $1,133 $1.03 Oct‐12 $1,167
8013 Alenka Deli 2,590 2.2% Nov‐10 Nov‐15 $38,850 $3,335 $1.29 Dec‐12 $3,435Annually 3%
8019 H&R Block 3,010 2.5% May‐06 Apr‐12 $49,484 $4,124 $1.37
8023 Liquor Center 2,400 2.0% Apr‐02 Mar‐17 $60,804 $5,067 $2.11 Mar‐12 $5,320 1, 10‐yr option with 5% annual increasesAnnually 5%
8027 Metro PCS 1,200 1.0% Jan‐09 Mar‐13 $22,248 $1,854 $1.55 Apr‐12 $1,910
8151 Honey Donuts 1,200 1.0% Jun‐07 May‐12 $21,057 $1,755 $1.46 May‐12 $1,825 No renewal options remainAnnually 4%
Leased GLA 92,698 77.2% $254,095 $1.22 Average In‐Place (excluding FoodMaxx)
2921 Available 2,400 2.0%8005 Available 3,400 2.8%8011 Available 1,100 0.9%8049 Available 6,800 5.7%8109 Available 1,600 1.3%8111 Available 1,600 1.3%8113 Available 3,200 2.7%8153 Available 1,200 1.0%8155 Available 1,200 1.0%8157 Available 1,200 1.0%8159 Available 1,200 1.0%8163 Available 2,400 2.0%
Subtotal ‐ Available 27,300 22.8% $0.23 Total Average In‐Place
TOTAL OFFERING 119,998
Rent
‐
Increases
‐
MTM
Jon Gianulias
John DuBois
Mark Denholm
July 2007 Placer Vineyards Specific Plan 3-7
Land use
Figure 3.1 Land Use Diagram
Elverta Specific Plan±1,734 Acres
±12,375 Projected Residents
Placer Specific Plan±5,230 Acres
±33,000-49,000 Projected Residentswww.placer.ca.gov/departments/communitydevelopment
SubjectElverta Crossing
SurrOunding reSidential develOpment activity
Jon Gianulias
John DuBois
Mark Denholm
majOr retailerS in Submarket
ANTELOPE ROAD
ELKHORN BLVD
WAT
T AV
E
WA
LERG
A R
OA
D
ELVERTA ROAD
WATT TOWNE CENTER
ANTELOPE MARKETPLACE
(DARK)
ELKHORN PLAZA
Jon Gianulias
John DuBois
Mark Denholm
lOcatiOn
d E M O g R A P h I C S Distance 1mi 3mi 5mi
Estimated2011Population 14,540 87,240 204,820
DaytimePop.(Employees) 1,450 10,740 46,520
MedianHouseholdIncome $68,400 $63,100 $61,000
AverageHouseholdIncome $75,000 $70,900 $68,200
MedianAge 33.0 33.6 34.2
