REDWOOD SHOPPING CENTER · 2 Financial Summary Investment Overview Actual 2018 NOI Price $8,900,000...

Josh BallesterosInvestment Advisor O: (415) 480-0214 M: (209) [email protected] CA BRE #02010271

FOR SALEGROCERY SHADOW ANCHORED RETAIL CENTER

Confidential Offering Memorandum

Mary Alam, MBAVice President O: (415) 358-2111 M: (415) [email protected] CA BRE #01927340

1740-1796 & 1744-1760 TUOLUMNE STREETVALLEJO, CA

REDWOOD SHOPPING CENTER

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Confidentiality & Disclosure

Agreement

Section 1

The Offering

Section 2

Financial Analysis

Section 3

Location Information

Section 4

Rent Comparables

Section 5

Demographics

Table of Contents

The information contained in the following Investment Summary is proprietary and strictly confidential. It is intended to be reviewed only by

the party receiving it from NAI Northern California Investment Real Estate Brokerage and should not be made available to any other person

or entity without the written consent of Broker. This Investment Summary has been prepared to provide summary, unverified information

to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is

not a substitute for a thorough due diligence investigation. Broker has not made any investigation, and makes no warranty or represen-

tation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the

size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos,

the compliance with State and Federal regulations, the physical condition of improvements thereon, or the financial condition or business

prospects of any tenant, or any tenant’s plans or intentions to continue occupancy of the subject property.

The information contained in the Marketing Brochure has been obtained from sources we believe to be reliable; however, Broker has not

verified, and will not verify, any of the information contained herein, nor has Broker conducted any investigation regarding these matters

and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential

purchasers must take appropriate measures to verify all of the information set forth herein.

Confidentiality & Disclosure Agreement

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1THE OFFERING


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1 PROPERTY INFORMATION

ExecutiveSummary

Property Details

Sale Price $8,900,000

Price per SF $381 2018 NOI* $557,279

Cap Rate 6.26%

Occupancy Rate 85%

Building Size 23,347 SF

Lot Size 2.01 AC

Year Built 2005

APN 0053-200-950, 0053-200-960

FoodMaxx(NOT PART OF PROPERTY)


* Projected 2018 NOI with rent increases and leased vacancies

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ExecutiveSummary

Property Highlights

• New construction built in 2005• Credit tenants include Subway, Domino’s,

Comcast etc• Stable, long term, tenants• NNN Leases• Potential for Value-Add by filling vacant

spaces and rent increases

Property Overview

• Shadow anchored by FoodMaxx grocery• Ample parking with signage• Concrete construction• 2 Buildings with a total square footage of 23,347 SF on 2.01 AC• Vallejo: Future job growth over the next ten years is predicted to be

37.62%• Vallejo ranked most diverse city in 2013, via Nerdwallet study published on

BusinessInsider.com• Average house value of $338,829 within 5 miles• Population of 157,905 within 5 miles• 0.4 miles from Highway 80 via Redwood street• 1 mile from Kaiser Permanente Vallejo Medical• 1.7 miles from Six Flags Discovery Kingdom via Fairgrounds Drive


PropertyPhotos

FINANCIAL ANALYSIS


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2 FINANCIAL ANALYSIS

Financial

Summary Investment Overview Actual 2018 NOI

Price $8,900,000

Price per Square Footage $385

CAP Rate 6.19%

Operating Data Actual 2018

Gross Scheduled Income $601,758

Vacancy Cost (5.0%) -$30,088

Gross Operating Income $571,670

Operating Expense NNN

Leasing Commissions $13,986

Net Operating Income $557,279

Debt Service -$315,235

Pre-Tax Cash Flow $242,044 Cash-on-Cash Return % (yr 1) 6.8%

Principal Reduction (yr 1) + $12,183

Total Return (yr 1) $254,227

Return on investment % 7.1%

Financing Data Actual Loan Amount $5,340,000

LTV 60%

Interest Rate 4.25%

Debt Service $315,235 Debt Service Monthly $26,270

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Valuation

Analysis Income & Expenses Projected 2018 NOI* Revenues $600,138

Current Expense Reimbursement $96,457

Expected Increase in NNN Reimbursements $80,913

Total Income $777,508 Expenses

Management Fee $3,864

SMS Management Company $32,202 (Landscaping, sweeping, parking lot, hauling, irrigation) Insurance $10,929

Utilities $25,630 (Water, electrical, gas, garbage, fire monitoring, sewer) Repairs $3,908

Property Taxes (1.133%) $100,837

Total Property Expenses $177,370 Net Income

Net Income $600,138

Valuation Analysis Net Operating Income $600,138

Vacancy Rate (5%) $30,007

Leasing Commissions (2 spaces) $12,852 NOI $557,279 Blended Cap Rate 6.26%

Value $8,900,000

*Includes proforma rent for the vacant spaces and scheduled rent increases in 2018


Rent RollSummary

Number of leasable spaces 14

Cell tower Cingular Wireless

Tenant names Agency Cleaners, Comcast, Domino’s Pizza, Farmer's Insurance, Goin Postal, Kenny Salon, Dentist, Lea Pannell Real Estate, Royal Jelly Donuts, Travis Credit Union, Peking Express,Subway

Rent PSF range $1.58 - $2.50

Rent increases Variable

Earliest lease expiration 7/10/18

Latest lease expiration 2/28/2026

Options Yes

Lease type NNN

Space sizes 900 SF - 2,567 SF

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LOCATION INFORMATION


3

3 LOCATION INFORMATION

Spotlight onCity of VallejoVallejo is a waterfront port city in Solano County, California, located in the North Bay region of the San Francisco Bay Area. The population was 115,942 at the 2010 census. It is the tenth most populous city in the San Francisco Bay Area, and the largest in Solano County. Vallejo sits on the northeastern shore of San Pablo Bay, 30 miles north of San Francisco. The colleges and universities in Vallejo are California Maritime Academy, the Vallejo Center campus of Solano Community College, and Touro University California. Ferry service runs from a terminal on Mare Island Strait to San Francisco, through the BayLink division of SolTrans.

The city of Vallejo is located 30 miles northeast of San Francisco, 22 miles north of Oakland, 56 miles north of San Jose and 52 miles south of Sacra-mento. Vallejo borders the city of Benicia to the east, American Canyon and the Napa county line to the north, the Carquinez Strait to the south and the San Pablo Bay to the west.

The 2010 United States Census reported Vallejo’s population density at 2,340.3 people per square mile. The racial makeup of Vallejo was 38,066 (32.9%) White, 25,572 (22.1%) African American, 757 (0.7%) Native American, 28,895 (24.9%) Asian (21.1% Filipino, 1.0% Indian, 0.9% Chinese, 0.5% Vietnamese, 0.2%Japanese, 0.2% Korean, 0.1% Laotian), 1,239 (1.1%) Pacific Islander, 12,759 (11.0%) from other races, and 8,656 (7.5%) from two or more races. Hispanic or Latino of any race were 26,165 persons (22.6%). Non-Hispanic Whites numbered 28,946 persons (25.0%).

Vallejo ranked the nation’s most ethnically diverse city in 2013 via a study by Nerdwallet published on BusinessInsider.com Vallejo’s overall job growth during the recent period of economic recovery has kept pace with the Bay Area, both growing 14 percent since 2009. This is a strong and positive indicator of Vallejo’s underlying economic foundation. Vallejo has relatively large employment concentrations in Health Care, Construction, Arts/Enter-tainment, and Retail. These dominant sectors suggest that Vallejo offers competitive advantages to these types of companies, and may provide a strong foundation for further expansion. Vallejo will have market demand for roughly 5,000 to 6,000 housing units over the next 25 years, based on growth forecasts.

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RegionalMap

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VALLEJO

CROCKETT

SAN RAFAEL

AMERICANCANYON

RICHMOND

MARTINEZ

CONCORD

San Pablo Bay

Grizzly Bay

BENECIA


RetailMaps

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SUBJECT PROPERTY:


VALLEJO

KAISER PERMANENTE VALLEJO MEDICAL CENTER

LAKE CHABOT

DAN FOLEYPARK

TU

OLU

MN

E S

TR

EE

T

GATEWAY PLAZA

VALLEJOPLAZA

VALLEJOCORNERS

REDWOODPLAZA


SalesComps

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Sales ComparablesComps

606-622 1ST ST606-622 1st St | Napa, CA 94559

$11,726,615Sale Price: 0.46 ACLot Size:

2008Year Built: 20,233 SFBuilding SF:

$579.58Price PSF: 08/13/2015Closed:

1

1

1530 FITZGERALD DR1530 Fitzgerald Dr | Pinole, CA 94564




2

2

GREEN VALLEY RANCH4455 Central Way | Fairfield, CA 94534



$548.56Price PSF: 5%CAP:

06/02/2017Closed:

3

3



SalesComps



MOESER SQUARE10544-10598 San Pablo Ave | El Cerrito, CA 94530




4

4

VALLEJO PLAZA3445 Sonoma Blvd | Vallejo, CA 94590



$452.62Price PSF: 4.5%CAP:

02/13/2015Closed:

5

5

193 SUNSET AVE193 Sunset Ave | Suisun City, CA 94585




11/13/2015Closed:

6

6



SalesComps



FAIRFIELD CENTER1200 Oliver Rd | Fairfield, CA 94534

$2,995,700Sale Price: 38768 ACLot Size:



05/04/2016Closed:

7

7



3 LOCATION INFORMATION3 LOCATION INFORMATION

Sales ComparablesSales Comps

SummarySummary Subject Property Price Bldg. SF Price/SF CAP # Of Units

Redwood Shopping Center 1740 Tuolumne Street $8.900,000 23,347 SF $381 6.26% - Vallejo, CA 94589

Sale Comps Price Bldg. SF Price/SF CAP # Of Units Close

606-622 1st St 1 Napa, CA $11,726,615 20,233 SF $579.58 - - 08/13/2015 94559

1530 Fitzgerald Dr 2 Pinole, CA $21,200,000 58,318 SF $363.52 - - 05/08/2015 94564

Green Valley Ranch 3 4455 Central Way $3,423,000 6,240 SF $548.56 5.00% - 06/02/2017 Fair ield, CA 94534

Moeser Square 4 10544-10598 San Pablo Ave $6,050,000 19,442 SF $311.18 - - 04/03/2015 El Cerrito, CA 94530

Vallejo Plaza 5 3445 Sonoma Blvd $4,700,000 10,384 SF $452.62 4.50% - 02/13/2015 Vallejo, CA 94590

193 Sunset Ave 6 Suisun City, CA $3,000,000 6,580 SF $455.93 5.30% - 11/13/2015 94585

Fair ield Center 7 1200 Oliver Rd $2,995,700 4,511 SF $664.09 5.30% - 05/04/2016 Fair ield, CA 94534

Totals/Averages Price Bldg SF Price/SF CAP # Of Units Close $7,585,045 17,958 SF $422.38 5.03% -


Sales CompsMap


1740 Tuolumne Street | Vallejo, CA 94589SUBJECT PROPERTY

Sales ComparablesMap

1

606-622 1st StNapa, CA 94559

2

1530 Fitzgerald DrPinole, CA 94564

3

4455 Central WayFairfield, CA 94534

GREEN VALLEY RANCH

4

10544-10598 San Pablo AveEl Cerrito, CA 94530

MOESER SQUARE

5

3445 Sonoma BlvdVallejo, CA 94590

VALLEJO PLAZA

6

193 Sunset AveSuisun City, CA 94585

7

1200 Oliver RdFairfield, CA 94534

FAIRFIELD CENTER


RENT COMPARABLES


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4 RENT COMPARABLES

RentComps


6040 MAIN ST6040 Main St | American Canyon, CA 94503

$36.00 SF/YRLease Rate: NNNLease Type:

1,500 SFSpace Size: 2006Year Built:

11,205 SFBldg Size:

1

1

5201 SONOMA BLVD5201 Sonoma Blvd | Vallejo, CA 94589



10,800 SFBldg Size: 12 monthsLease Term:

2

2

5201 SONOMA BLVD5201 Sonoma Blvd | Vallejo, CA 94589




3

3

RentComps

4 RENT COMPARABLES

4 RENT COMPARABLES

RentComps


2035-2045 SPRINGS RD2035-2045 Springs Rd | Vallejo, CA 94591


1,500 SFSpace Size: 5,871 SFBldg Size:

36 monthsLease Term:

4

4

Leased by Cricket Wireless

2001-2017 SOLANO AVE2001-2017 Solano Ave | Vallejo, CA 94590




5

5

Leased by Orchard Nails & Spa

742-758 ADMIRAL CALLAGHAN LN742-758 Admiral Callaghan Ln | Vallejo, CA 94591



13,988 SFBldg Size:

6

6

Leased by Fed-Ex/Kinkos

RentComps

4 RENT COMPARABLES

4 RENT COMPARABLES

Rent CompsSummary


Rent Comps Price/SF/Year Available SF Bldg SF # Of Units Occupancy %

16040 Main St

American Canyon, CA94503

$36.00 1,500 SF 11,205 SF - -

25201 Sonoma Blvd

Vallejo, CA94589

$24.00 1,045 SF 10,800 SF - -

35201 Sonoma Blvd

Vallejo, CA94589

$22.80 1,407 SF 10,800 SF - -

42035-2045 Springs Rd

Vallejo, CA94591

$24.00 1,500 SF 5,871 SF - -

52001-2017 Solano Ave

Vallejo, CA94590

$24.00 1,400 SF 85,045 SF - -

6742-758 Admiral Callaghan Ln

Vallejo, CA94591

$27.00 3,750 SF 13,988 SF - -

Totals/Averages Price/SF/Year Available SF Bldg SF # Of Units Occupancy %$26.30 1,767 SF 22,952 SF 0 0%

4 RENT COMPARABLES

Rent CompsSummary

4 RENT COMPARABLES

Rent CompsMap

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1740 Tuolumne Street | Vallejo, CA 94589SUBJECT PROPERTY

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1 6040 Main StAmerican Canyon, CA 94503

2 5201 Sonoma BlvdVallejo, CA 94589

3 5201 Sonoma BlvdVallejo, CA 94589

4 2035-2045 Springs RdVallejo, CA 94591

5 2001-2017 Solano AveVallejo, CA 94590

6 742-758 Admiral Callaghan LnVallejo, CA 94591

4 RENT COMPARABLES

MapRent Comps

DEMOGRAPHICS


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5 DEMOGRAPHICS

DemographicsMap

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* Demographic data derived from 2010 US Census

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Population 1 Mile 2 Miles 5 Miles

TOTAL POPULATION 17,272 68,429 157,905

MEDIAN AGE 39.7 36.7 38.70

MEDIAN AGE (MALE) 37.4 34.4 34.5

MEDIAN AGE (FEMALE) 41.8 39.1 38.6

Demographics

Households & Income 1 Mile 2 Miles 5 Miles

TOTAL HOUSEHOLDS 6,505 24,113 54,471

# OF PERSONS PER HH 2.7 2.8 2.9

AVERAGE HH INCOME $73,314 $68,547 $65,476

AVERAGE HOUSE VALUE $409,289 $373,049 $338,829

Map

Ethnicity 1 Mile 2 Miles 3 Miles

% HISPANIC 20.3% 24.1% 24.8%

Race 1 Mile 2 Miles 3 Miles

% WHITE 51.9% 39.7% 40.1%

% BLACK 17.4% 23.9% 22.9%

% ASIAN 19.3% 22.5% 24.0%

% HAWAIIAN 1.2% 1.2% 1.1%

% INDIAN 1.2% 0.7% 0.7%

% OTHER 10.3% 13.3% 12.4%

5 DEMOGRAPHICS

Josh BallesterosInvestment Advisor O: (415) 480-0214 M: (209) [email protected] CA BRE #02010271

Mary Alam, MBAVice President O: (415) 358-2111 M: (415) [email protected] CA BRE #01927340

101 CALIFORNIA STREET, SUITE 850, SAN FRANCISCO, CA 94111 • WWW.NAINORCAL.COM

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REDWOOD SHOPPING CENTER · 2 Financial Summary Investment Overview Actual 2018 NOI Price $8,900,000...

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