SOLEDAD MINI STORAGE | FOR SALE100 Units | Pro Forma Cap Rate: 5.96% | 100% Occupied
1145 Front St. | Soledad, CA 93960
FOR SALE
James Kendall | DRE #02010395
SOLEDAD MINI STORAGE
PRESENTED BY:
OFFERING MEMORANDUM
TABLE OF CONTENTS:
Investment Overview
Financial Analysis
Aerial Maps
Property Photos
Satellite Map
Site Plan
City of Soledad
Firm Information
Disclaimer
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JAMES KENDALL
Sales Associate | DRE #02010395
831.646.1919 ext. 112
MAHONEY & ASSOCIATES
501 Abrego St | Monterey, CA
www.mahoneycommercial.com
831.646.1919
1145 Front St. Soledad | 3
INVESTMENT OVERVIEW
Mahoney & Associates is pleased to present for the first time on the market Soledad Mini Storage, a 100 storage unit complex complete with a one bedroom/one bath manager’s apartment, located Soledad, CA. The subject property is ideally situated along Front Street with easy access to Highway 101 and the Soledad Mission Shopping Center, which is home to major retail tenants such as Starbucks, Foods Co, CVS, Burger King, O’Reilly Auto Parts as well as a new multi-screen movie theater. Front Street is the sole arterial that connects the residential area of Soledad to the major commercial district in town; meaning that one must drive past Soledad Mini Storage to visit any of the aforementioned retailers.
The subject property is comprised of three single story row buildings on concrete slab, with wood frame construction, stucco exterior, Spanish tile roofs with concrete driveways between the buildings. There are 97 identical 10'x12' units, all with drive up access and entry via a 6'x7' metal roll up door. Three of the units are 12'x18' and have been converted into vehicle storage garages, to be rented back by the Seller after the Close of Escrow at $150 per month, each. Both of the exterior row buildings could be expanded to 12'x18' storage units.
Soledad Mini Storage was developed in 1990 and has been maintained in impeccable condition by the original owner, who operates the storage business from his adjacent hotel property. After operating the business for 30 years, ownership is simplifying things and downsizing. Access to the storage unit property is granted by hotel staff after checking in at the hotel, who then open the entry gate manually; thus prospective buyers are encouraged to investigate the ideal management scenario for their needs. The installation of a key pad door alarms, security cameras, and other automated processes may help bring the property in line with comparable storage properties.
The on-site one bedroom, one bath manager’s apartment of approximately 576 SF is currently being rented for $900/month. Prospective buyers are encouraged to investigate the option of utilizing professional property management or offering the apartment to an on-site manager at low/zero rent in lieu of a management fee.
All financial information utilized herein was provided by the Seller based on 2019 actuals, with the exception of the pro forma income. Seller does not utilize a 21st Century automated/computerized documentation system. Buyer to conduct its own investigations and due diligence of the property and relevant materials.
PROPERTY DETAILS
Address 1145 Front St. Soledad, CA 93960
Asking Price $1,999,888
Actual Cap Rate 4.91%
Current Rent Per Unit $100/month
Current Unit Occupancy 100%
Pro Forma Cap Rate 5.96%
Pro Forma Rent Per Unit $120/month
APN 022-223-026
Building SF +/- 13,224
Land Area +/- 34,848
ImprovementsThree single story wood framed, stucco buildings with Spanish tile roofs
Parking +/- 6 off street spaces
Zoning H-C: Commercial Highway
Sprinkled No
Year Built 1990
Entry Gate Manually Operated
Security Cameras No
1145 Front St. Soledad | 4
FINANCIAL ANALYSIS
CURRENT INCOME & EXPENSES †
Estimated Gross Scheduled Rents $116,400
Apartment Rent $10,800
Late fees $820
Estimated Adjusted Gross Income $128,020
Annual Prop Tax (1.19%) $23,799
Insurance $1,844
Management Fee 6%* $0
Business License Fee $204
Water, Sewer, Sanitation $1,071
Electricity $1,857
Repairs/maintenance $850
Office Supplies $191
Accounting $100
Current Expenses Total $29,916
Current Net Income $98,104
Cap Rate 4.91%
ESTIMATED PRO FORMA INCOME & EXPENSES
Estimated Gross Scheduled Rents †† $145,080
Apartment Rent $12,000
Late fees $820
Estimated Adjusted Gross Income $157,900
Annual Prop Tax (1.19%) $23,799
Insurance $1,844
Management Fee 6% $8,705
Business License Fee $204
Water, Sewer, Sanitation $1,071
Electricity $1,857
Repairs/maintenance $850
Office Supplies $191
Accounting $100
Estimated Expenses Total $38,620
Estimated Net Income $119,280
Cap Rate 5.96%
† Operating Income and Expenses based on 2019 actuals provided by Seller.†† Pro Forma income based upon market rate rents of 97 units at $120/month per unit, three 12'x18' units at $150/month per unit, and $1,000/month for apartment.
* Management fee: No management fee currently in place.
PROPERTY LOCATION
MOTEL 8
VALERO
DENNY’S
TACO BELLVALLEY HARVEST INN
FRONT S
T. (SO
UTHBOUN
D)
FRONT S
T. (SO
UTHBOUN
D)
FOOD CO.
1145 Front St. Soledad | 5
AERIAL MAP | SOUTH
PROPERTY LOCATION
MOTEL 8
FRONT ST. (NORTHBOUND)
FRONT ST. (NORTHBOUND)
SALINAS | 14 MILESSALINAS | 14 MILES
DOWNTOWN SOLEDAD
1145 Front St. Soledad | 6
AERIAL MAP | NORTH
1145 Front St. Soledad | 9
AERIAL PROPERTY PHOTO
Tax Map 1145 Front St, Soledad, CA 93960
Tax Map 1145 Front St, Soledad, CA 93960 6/5/2020 Page 1 (of 4)All information contained herein is subject to the Limitation of Liability for Informational Report set forth on the last page hereof. ©2005-2020 First American Financial Corporationand/or its affiliates. All rights reserved.
1145 Front St. Soledad | 10
SITE PLAN
Imagery ©2020 Data MBARI, Landsat / Copernicus, Data CSUMB SFML, CA OPC, Data SIO, NOAA, U.S. Navy, NGA, GEBCO, Imagery ©2020 TerraMetrics, Map data ©2020 5 mi
PROPERTY LOCATION
MONTEREYMONTEREY
CARMEL-BY-THE-SEACARMEL-BY-THE-SEA
CARMEL VALLEYCARMEL VALLEY
PACIFIC GROVEPACIFIC GROVE
SALINASSALINAS
MOSS LANDINGMOSS LANDING
SEASIDESEASIDE
MARINAMARINA
GONZALESGONZALES
CARMEL HIGHLANDSCARMEL HIGHLANDS
BIG SURBIG SUR
CHUALARCHUALAR
SOLEDADSOLEDAD
GREENFIELDGREENFIELD
1145 Front St. Soledad | 11
SATELLITE MAP
1145 Front St. Soledad | 12
CITY OF SOLEDAD
The City of Soledad continues to be a model of economic vitality and resilience through the implementation of infrastructure improvements to city
parks, roads, schools, and water treatment systems. Renewable energy, water reclamation, and downtown revitalization are at the heart of their
mission to provide a sustainable future for their residents, businesses, and visitors.
Since the early 2000’s, the City of Soledad has played a major role in fostering and increasing much-needed units of affordable housing to support
the diverse needs of Monterey County’s growing workforce. Since 2015, the city has been working closely with developers to add single family
and multi-family housing to areas approved for development before 2008. This housing development boom is increasing economic development
opportunities for small businesses, franchise businesses, service providers, medical facilities, entertainment venues, and large retailers who seek to
expand to an untapped market.
The City of Soledad is located in the center of the Salinas Valley, nestled between the beautiful Santa Lucia Mountains to the west and the
picturesque Gabilan Mountains to the east. The City is surrounded by the Salinas Valley’s booming agricultural community, home to fields of lettuce,
broccoli, and asparagus, as well as row upon row on some of the finest wine grapes in the state.
https://cityofsoledad.com/
1145 Front St. Soledad | 13
$3 BILLIONIN TRANSACTION VOLUME
1,000+ASSETS SOLD
1,750+LEASE TRANSACTIONS
6,000,000SQUARE FEET LEASED
SOLD PROPERTY HIGHLIGHTS
40+ Years of Commercial Real Estate Represented
UNEQUALED COMMITMENT TO OUR CLIENTS’ NEEDS AND SATISFACTION…
MAHONEY & ASSOCIATES WORKS TIRELESSLY ON MAXIMIZING REAL ESTATE
VALUES.
With our Collaborative Team of Real Estate Professionals and Consultants, Mahoney
& Associates works to maximize your property’s potential, whether for selling, leasing
or trading. In everything we do, there is just one driving principle: client satisfaction.
For over 40 years, Mahoney & Associates has been known as a local and regional
trusted industry leader, founded by John Mahoney. Our clients span every industry,
so we serve them with broad, creative and diverse expertise and a market knowledge
that touches every facet of commercial real estate, from raw land development to
sophisticated 1031 Single-and Multi-Tenant Net Leased exchanges in other states. In
every transaction we enter, beyond the beams and masonry or ROI, one mission
alone drives us all and that is representing your interests as if they were our own.
It will be our pleasure and duty to sit with you and listen…so we can understand your
motivation, background, needs, challenges and goals in discussing potential solutions
for your properties. We have learned that one solution does not fit all situations
and look forward to working with you to develop a strategy that encompasses all
stakeholders’ interests. Nothing is more satisfying than driving by a property with
which we have partnered with owners, knowing there is now a new business, a
greater stream of income, a legacy honoring a family member, a community treasure
restored…the list is endless in how we work with our valued clients to enrich their lives
and the community in which their property sits.
MAHONEY & ASSOCIATES
1145 Front St. Soledad | 14
DISCLAIMER
JAMES KENDALL
Sales Associate | DRE #02010395
831.646.1919 ext. 112
MAHONEY & ASSOCIATES
501 Abrego St | Monterey, CA
www.mahoneycommercial.com
831.646.1919
EXCLUSIVELY LISTED BY:
Mahoney & Associates (M&A) hereby advises all prospective purchasers of property as follows:
All materials and information received or derived from M&A and its directors, officers, agents,
advisors, affiliates and/or any third party sources are provided without representation or
warranty as to completeness, veracity, or accuracy, condition of the property, compliance or
lack of compliance with applicable governmental requirements, developability or suitability,
financial performance of the property, projected financial performance of the property for
any party’s intended use or any and all other matters. Neither M&A and its directors, officers,
agents, advisors, or affiliates makes any representation or warranty, express or implied, as to
accuracy or completeness of the any materials or information provided, derived, or received.
Materials and information from any source, whether written or verbal, that may be furnished for
review are not a substitute for a party’s active conduct of its own due diligence to determine
these and other matters of significance to such party. M&A will not investigate or verify any
such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH
PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify
all information and to conduct their own inspections and investigations including through
appropriate third party independent professionals selected by such party. All financial data
should be verified by the party including by obtaining and reading applicable documents and
reports and consulting appropriate independent professionals. M&A makes no warranties and/
or representations regarding the veracity, completeness, or relevance of any financial data or
assumptions. M&A does not serve as a financial advisor to any party regarding any proposed
transaction. All data and assumptions regarding financial performance, including that used for
financial modeling purposes, may differ from actual data or performance. Any estimates of
market rents and/ or projected rents that may be provided to a party do not necessarily mean
that rents can be established at or increased to that level. Parties must evaluate any applicable
contractual and governmental limitations as well as market conditions, vacancy factors and
other issues in order to determine rents from or for the property. Legal questions should be
discussed by the party with an attorney. Tax questions should be discussed by the party with
a certified public accountant or tax attorney. Title questions should be discussed by the party
with a title officer or attorney. Questions regarding the condition of the property and whether
the property complies with applicable governmental requirements should be discussed by the
party with appropriate engineers, architects, contractors, other consultants and governmental
agencies. All properties and services are marketed by M&A and in compliance with all applicable
fair housing and equal opportunity laws.