San Jose Retail Showroom 1033 S. Bascom Avenue San Jose, … · San Jose Retail Showroom 1033 S....
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San Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska
(408) [email protected]
Lic. #01475124
❖ Offered at $1,550,000 ($256 psf), below replacement cost.
❖ 6,049 s.f. of Retail Showroom & Service Warehouse.
❖ Very high traffic section of Bascom Ave.
❖ Across from new Library, near Santa Clara Valley Med. Ctr.
❖ Just 2 blocks from Hwy. 280
Phone: (650) 961-6206 ● Fax: (408) 716-3218 ● 800 El Camino Real ● Mountain View, CA 94040 ● www.cpi-re.com
Table of Contents
SECTION 1 - PROPERTY INFORMATION
SECTION 2 - PHOTOS & MAPS
SECTION 3 - FINANCIAL SUMMARY
SECTION 4 - COMPARABLES
San Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska(408) 313-9172
CONFIDENTIALITY & DISCLAIMER
This Offering Memorandum has been prepared by California Partners Inc. (Broker) solely for the use of prospective purchasers (Buyers) of the referenced Property. The material resented in this memorandum is confidential, furnished solely for the purpose of considering investment in the Property, and is not to be copied and/or used for any purpose, or made available to other persons, without the express written consent of the seller (Seller) or Broker of the Property. This memorandum has been prepared to provide summary information to Buyers. It does not, however, purport to present all possible material information regarding the Property. Furthermore, the information contained in this package has been obtained from sources believed by Broker and Seller to be reliable, however, neither Broker nor Seller make any guarantee, warranty or representation whatsoever regarding the accuracy, or completeness of any material, physical, legal, financial, environmental or other information provided. Any financials, pro-formas, projections, opinions, assumptions or estimates are used for examples only and do not necessarily represent the current or future performance of the Property. Broker and Seller strongly recommend that Buyers conduct an in-depth investigation of all physical and financial aspects of the Property as part of their thorough due diligence to determine if the Property meets their needs and expectations. Broker and Seller are not empowered to provide, nor shall be held liable, for any tax, financial, or legal opinions or conclusions of Buyers regarding purchase or ownership of the Property. Seller retains the right to withdraw, modify, or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and Buyer(s) have executed a contract of sale containing terms and conditions acceptable to Seller. Such obligations of Seller shall only be those defined in such contract of sale.
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Property DescriptionSan Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska(408) 313-9172
Showroom with distribution warehousePossible Automotive Products Retailer
Vacant for Owner-User: room for 23 parkingspaces, with 5 large, 12.5' high drive-in bays, fora rear distribution warehouse, this slump-stonebrick building built in 1973,is ideal for adistribution/retailer showroom in front, with verygood parking and easy access from bothBascom Avenue directions. Being just a coupleblocks from Highway 280, it is walking distanceto Santa Clara Valley Medical Center and thenew San Jose library. It is surrounded byseveral similar, single-user, well maintainedbuildings. On each side are 2 small multi-tenantstrip centers. Bascom avenue is a 6 lane maincorridor running through 4 different cities in the South Bay area. The CN Zoning has a Use Code ofCommercial Neighborhood: Shopping Center, Strip Center, Enterprise Zone. This can allow forretail automotive parts sales which would be the most likely the best, most immediate fit.(Installation or repairs requiring a use permit from the City).
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Property PhotosSan Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska(408) 313-9172
Ideal for Owner - UserGreat Retail Auto location and building
From Bascom Service warehouse
Showroom Roll up doors
Library- across street Hospital- up Bascom ave.
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Maps and AerialsSan Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska(408) 313-9172
Traffic Counts
Traffic Counts
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Maps and AerialsSan Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska(408) 313-9172
Front Aerial
Side Aerial
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Pro Forma SummarySan Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska(408) 313-9172
TENANT ANNUAL SCHEDULED INCOME
Tenant Actual Market
Retail / Showroom $0 $112,512
TOTALS $0 $112,512
ANNUALIZED INCOMEActual Market
Gross Potential Rent $0 $112,512
Less: Vacancy $0 $0
Reimbursements $23,415 $29,041
Effective Gross Income $23,415 $141,553
Less: Expenses ($25,415) ($22,300)
Net Operating Income ($2,000) $119,253
Debt Service ($60,458) ($60,458)
Net Cash Flow after Debt Service ($62,458) $58,795
Principal Reduction $21,346 $21,346
Total Return ($41,112) $80,141
ANNUALIZED EXPENSES
Actual MarketProperty Management Fee $1,115 $0
Replacement Reserves $2,000 $0
Property Taxes $17,400 $17,400
Maintenance $2,400 $2,400
Building Insurance $2,500 $2,500
Total Expenses $25,415 $22,300
Expenses Per RSF $4.20 $3.69
INVESTMENT SUMMARY
Price: $1,550,000
Year Built: 1973
Tenants: 1
RSF: 6,049
Price/RSF: $256.24
Lot Size: 22,000 sf
Floors: 1
Cap Rate: -.13%
Market Cap Rate: 7.69%
FINANCING SUMMARY
Loan Amount: $930,000
Down Payment: $620,000
Loan Type: Fixed
Interest Rate: 4.25%
Term: 25 years
Monthly Payment: $5,038
DCR: -.03
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Executive SummarySan Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska(408) 313-9172
ACQUISITION COSTS
Purchase Price, Points and Closing Costs $1,566,300
Investment - Cash $636,300
First Loan $930,000
INVESTMENT INFORMATION
Purchase Price $1,550,000
Price per Tenant $1,550,000
Price per Sq. Ft. $256.24
INCOME, EXPENSES & CASH FLOW
Gross Scheduled Income $23,415
Total Vacancy and Credits $0
Operating Expenses ($25,415)
Net Operating Income ($2,000)
Debt Service ($60,458)
Cash Flow Before Taxes ($62,458)
Total Interest (Debt Service) ($39,112)
Depreciation and Amortization ($38,627)
Taxable Income (Loss) ($79,740)
Tax Savings (Costs) $29,504
Cash Flow After Taxes ($32,954)
FINANCIAL INDICATORS
Cash on Cash Return Before Taxes -9.82%
Optimal Internal Rate of Return (yr 10) 1.80%
Debt Coverage Ratio -0.03
Capitalization Rate -0.13%
Gross Income / Square Feet $3.87
Gross Expenses / Square Feet ($4.20)
Operating Expense Ratio 108.54%
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Demographic and Income ProfileDemographics Prepared by Chris ProhaskaBascom Retail
Summary Census 2010 2012 2017Population 39,402 40,320 42,418Households 15,387 15,757 16,689Families 8,842 8,949 9,578Average Household Size 2.51 2.51 2.49Owner Occupied Housing Units 5,663 5,521 6,015Renter Occupied Housing Units 9,724 10,236 10,674Median Age 33.9 33.9 34.2
Trends: 2012 - 2017 Annual Rate Area State NationalPopulation 1.02% 0.67% 0.68%Households 1.16% 0.66% 0.74%Families 1.37% 0.81% 0.72%Owner HHs 1.73% 1.03% 0.91%Median Household Income 3.50% 3.35% 2.55%
2012 2017 Households by Income Number Percent Number Percent
<$15,000 1,643 10.4% 1,605 9.6%$15,000 - $24,999 1,328 8.4% 1,099 6.6%$25,000 - $34,999 1,484 9.4% 1,171 7.0%$35,000 - $49,999 2,452 15.6% 2,272 13.6%$50,000 - $74,999 2,956 18.8% 2,958 17.7%$75,000 - $99,999 1,577 10.0% 2,207 13.2%$100,000 - $149,999 2,232 14.2% 2,782 16.7%$150,000 - $199,999 1,170 7.4% 1,512 9.1%$200,000+ 915 5.8% 1,083 6.5%
Median Household Income $56,149 $66,675Average Household Income $80,175 $92,963Per Capita Income $32,026 $37,257
Census 2010 2012 2017 Population by Age Number Percent Number Percent Number Percent
0 - 4 3,132 7.9% 3,184 7.9% 3,356 7.9%5 - 9 2,442 6.2% 2,480 6.2% 2,605 6.1%10 - 14 1,945 4.9% 1,954 4.8% 2,072 4.9%15 - 19 2,033 5.2% 1,975 4.9% 1,982 4.7%20 - 24 2,873 7.3% 2,990 7.4% 2,897 6.8%25 - 34 8,098 20.6% 8,423 20.9% 8,936 21.1%35 - 44 6,039 15.3% 6,003 14.9% 6,231 14.7%45 - 54 5,302 13.5% 5,252 13.0% 5,127 12.1%55 - 64 3,780 9.6% 4,039 10.0% 4,456 10.5%
65 - 74 1,750 4.4% 1,914 4.7% 2,425 5.7%75 - 84 1,227 3.1% 1,259 3.1% 1,388 3.3%
85+ 781 2.0% 847 2.1% 943 2.2%Census 2010 2012 2017
Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 21,506 54.6% 21,656 53.7% 21,902 51.6%Black Alone 1,923 4.9% 2,053 5.1% 2,307 5.4%American Indian Alone 441 1.1% 460 1.1% 511 1.2%Asian Alone 5,595 14.2% 5,799 14.4% 6,413 15.1%Pacific Islander Alone 228 0.6% 236 0.6% 261 0.6%Some Other Race Alone 7,472 19.0% 7,779 19.3% 8,462 19.9%Two or More Races 2,237 5.7% 2,337 5.8% 2,562 6.0%
Hispanic Origin (Any Race) 15,239 38.7% 15,864 39.3% 17,407 41.0%Data Note: Income is expressed in current dollars.
June 27, 2013
©2013 Esri Page 1 of 2
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017.
Demographic and Income ProfileDemographics Prepared by Chris ProhaskaBascom Retail
AreaStateUSA
Trends 2012-2017
Population Households Families Owner HHs Median HH Income
Annual
Rat
e (i
n p
erce
nt)
3.5
3
2.5
2
1.5
1
0.5
0
20122017
Population by Age
0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
Perc
ent
20
18
16
14
12
10
8
6
4
2
0
2012 Household Income
<$15K10.4%
$15K - $24K8.4%
$25K - $34K9.4%
$35K - $49K15.6%
$50K - $74K18.8%
$75K - $99K10.0% $100K - $149K
14.2%
$150K - $199K7.4%
$200K+5.8%
2012 Population by Race
White Black Am. Ind. Asian Pacific Other Two+
Perc
ent
50
45
40
35
30
25
20
15
10
5
0
2012 Percent Hispanic Origin: 39.3%
June 27, 2013
©2013 Esri Page 2 of 2
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017.
Recent Sales ComparablesSan Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska(408) 313-9172
S San Jose Retail Showroom1033 S. Bascom AvenueSan Jose, CA
Sale Price $1,550,000
Tenants 1
Price/Tenant $1,550,000
Price/SqFt $256.24
Cap Rate -0.13%
Year Built 1973
NOTESVacant building, with 4 warehouse bays, and approx. 1,300 S.F. front showroom space. Brick building, with ample parking, and good street exposure for retail.
1 Precision Auto Tune1365 W. San CarlosSan Jose, CA 95126
Sale Price $800,000
Tenants 1
Price/Tenant $800,000
Price/SqFt $227.53
Cap Rate N/A
Year Built N/ASale Date 8/8/2012
Major Tenants
Precision Auto Tune
NOTESSold as a leased investment.
2 Goodyear Tires1800 WinchesterCampbell, CA 95008
Sale Price $945,000
Tenants 1
Price/Tenant $945,000
Price/SqFt $216.35
Cap Rate N/A
Year Built 1900Sale Date 2/25/2013
Major Tenants
Good Year Tires
NOTESSold as all cash sale, with 6 years remaining on National Tenant lease.
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Recent Sales ComparablesSan Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska(408) 313-9172
3 America's Tire980 E. Hamilton AveCampbell, CA 95008
Sale Price $1,275,000
Tenants 1
Price/Tenant $1,275,000
Price/SqFt $229.52
Cap Rate N/A
Year Built 1969Sale Date 10/15/2012
Major Tenants
America's Tire
NOTESSold as a leased investment. Local tenant.
4 970 S. Bacom showroom970 S. Bascom Ave.San Jose, CA 95128
Sale Price $3,100,000
Tenants 1
Price/Tenant $3,100,000
Price/SqFt $279.83
Cap Rate N/A
Year Built 1961Sale Date 12/26/2012
Major Tenants
Cal Febcing Academy
NOTESSold as a leased investment. Local tenant.
5 O'Reilly Auto Parts18506 Prospect RdSan Jose, CA 95129
Sale Price $3,100,000
Tenants 1
Price/Tenant $3,100,000
Price/SqFt $250.32
Cap Rate 7.16%
Year Built 1969Sale Date 11/6/2012
Major Tenants
O'Reilly Auto Parts
NOTESSold as leased investment. Corp. tenant in place. Sold as 1031 exchange up-leg.
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Recent Sales ComparablesSan Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska(408) 313-9172
6 1492 Almaden Strip1492 AlmadenSanJose, CA 95125
Sale Price $1,720,000
Tenants 5
Price/Tenant $344,000
Price/SqFt $293.67
Cap Rate 6.8%
Year Built 1990Sale Date 12/17/2012
Major Tenants
Bella Light Salon
EZ Coin Laundromat
KN Mini Market
Los Mancilla Taqueria
NOTESAll cash purchase. Legal issues. Retail Center on Highly Traveled Almaden Road. Long-Term Tenants with Hard-to-Move Improvements. High population area NewConstruction - Built 1990 Low Average Rents ($1.53 psf)
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Recent Sales ComparablesSan Jose Retail Showroom
1033 S. Bascom AvenueSan Jose, CA
Chris Prohaska(408) 313-9172
S 1033 S. Bascom Avenue, San Jose, CA ($1,550,000)
1 1365 W. San Carlos, San Jose, CA 95126 ($800,000)
2 1800 Winchester, Campbell, CA 95008 ($945,000)
3 980 E. Hamilton Ave, Campbell, CA 95008 ($1,275,000)
4 970 S. Bascom Ave., San Jose, CA 95128 ($3,100,000)
5 18506 Prospect Rd, San Jose, CA 95129 ($3,100,000)
6 1492 Almaden, SanJose, CA 95125 ($1,720,000)
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