1601tiburon boulevard tiburon, ca
TRANSCRIPT
1
1601
RARE FREESTANDING TROPHY BUILDING WITH IRREPLACEABLE DRIVE-THRU
TIBURON BOULEVARD TIBURON, CA
OFFERING MEMORANDUM
2
The information provided in this Offering Memorandum and information that may be provided with respect to the Property was obtained from a variety of sources. NEITHER SELLER NOR BROKERS HAS MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED OR TO BE PRESENTED WITH RESPECT TO THE PROPERTY. SELLER AND BROKERS MAKE NO REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY OR COMPLETENESS OF ANY INFORMATION THAT MAY BE PROVIDED REGARDING THE PROPERTY.
The Seller reserves the right to withdraw the Property being marketed at any time without notice, to reject all offers, and to accept any offer without regard to the relative price and terms of any other offer. Any offer to buy must be presented in the form of a non-binding letter of intent. Neither the prospective buyer nor Seller shall be bound until execution of the contract of purchase and sale, which contract shall supersede prior discussions and writings and, except for the Confidentiality Agreement, shall constitute the sole agreement of the parties. Prospective buyers shall be responsible for their costs and expenses of investigating the Property and all other expenses, professional or otherwise, incurred by them.
3
BRIAN HENNESSEYSenior Vice [email protected] License #00481388
CAMERON BAIRDSenior Vice [email protected] License #01503816
AVISON YOUNG6711 Forest Lawn DriveLos Angeles, CA 90068www.avisonyoung.com
Table of Contents 1 Executive Summary pages 4-5
2 Property Overview pages 6-9
3 Market Overview pages 10-15
4 Owner/User Scenario pages 16-19
4
ExecutiveSummary
5
We are pleased to offer qualified investors an opportunity to purchase an irreplaceable, stand-alone asset on the main thoroughfare entering Tiburon/Belvedere in Marin County, California which is currently a Bank of America branch. Bank of America’s lease ends March 31, 2020 providing new ownership with multiple opportunities to capitalize on the site’s excellent location and rare drive-thru permitting for a variety of different uses. Ownership is fee simple with ±6,487 SF of improvements on ±.53 acres of land that includes 35 parking spaces with the ability to park additional cars on the adjacent parking lot.
The property is located on the northeast corner of Tiburon Boulevard and Beach Road, within walking distance to Main Street Tiburon and the waterfront. This two-story office building was constructed in 1973 as a build-to-suit for Bank of America and features one of the handful of permitted drive-thru retail sites in Marin County. Banks and credit unions are permitted uses and a CUP would be required for medical office, personal service, professional offices or medical services. Tiburon is one of the most affluent communities in the United States with an average HH income of $269,000 and a median home price of $2,427,100. This provides a unique opportunity for an owner-user or an investor to capitalize on the surrounding wealth.
This is a unique opportunity to own a highly visible retail location on a signalized corner in one of the most affluent communities in Northern California.
Offering Summary
Price $5,950,000
Price PSF Building $917.21
Price PSF Land $244.35
In-Place NOI
Bank of America Lease Expires March 31, 2020
Monthly Rent PSF $26,231.16 NNN
PROPERTY HIGHLIGHTS
• Located in the center of downtown Tiburon on the signalized corner of Tiburon Boulevard and Beach Road
• Currently zoned as NC/AHO - Neighborhood Commercial/Affordable Housing Overlay
• ±6,487 square feet (±5,026 square feet ground floor and ±1,461 square feet second level)
• 35 parking spaces / 5.4 per 1000 square feet (additional parking available in adjacent parking lot at no additional cost)
• Property has a drive-thru which is irreplaceable in Marin County
• Tiburon is one of the wealthiest cities in the United States with average household income at $269,000
• Built in 1973 for Bank of America, whose lease is expiring March 2020 and will be vacating
• $1,540 to acquire a CUP and the time to obtain one can range from several weeks to a couple months
• Banks or Credit Unions would not require a CUP
Executive Summary
6
Property Overview
7
Address 1601 Tiburon Boulevard, Tiburon, California 94920
Building Size ±6,487 SF (±5,026 square feet ground floor and ±1,461 square feet second level)
Site Area ± 0.56 Acres (± 24,350 SF)
APN 058-171-47
Year Built 1973
Parking* 32 Surface Spaces, plus 3 Handicap Spaces; Ratio of 5.4/1,000 SF(Additional parking is available in the adjacent parking lot at no additional cost)
Submarket Corte Madera/Mill Valley
*See information on Parking Easement on Page 12
Specifications
8
TIBURON BLVD.
BEACH ROAD
9
Parcel Map
10
Ground Floor Plan
11
12
Additional parking available on the adjacent parking lot as per the Declaration.
Pursuant to said Declaration, both Parcels A and B are benefited and burdened with reciprocal easements for reasonable access, ingress upon, and egress on and over the other Parcel so as to provide for the passage of motor vehicles and pedestrians between the Common Area (as defined in the Declaration) and to and from all abutting streets or rights of way furnishing access to the Parcels. Pursuant to Section 2.1(b), each Parcel also enjoys a reciprocal easement for reasonable and customary use of the parking spaces located on the Parcels as set aside or marked for parking of passenger automobiles from time to time.
Parking Easement
13
14
Market Overview
15
The Town of Tiburon is located just north of San Francisco, in Marin County, California. It is accessible by ferry from downtown San Francisco, as well as by car from Highway 101 and Highway 131 (Tiburon Boulevard).
TIBURONDEMOGRAPHICS
9,170POPULATION
$269,000AVG HH INCOME
50.5MEDIAN AGE
3,824HOUSEHOLDS
Tiburon
16
Marin County is in Northern California, across the Golden Gate Strait from San Francisco. The sprawling Marin Headlands has Golden Gate Bridge views, trails and the 1855 Point Bonita Lighthouse. North are the giant redwood trees of Muir Woods National Monument. Mount Tamalpais State Park’s namesake peak has panoramic views. The Frank Lloyd Wright–designed Marin County Civic Center is in county seat San Rafael.
Economic Factors
• Marin County added 3,100 jobs since August 2015, and has added 15,200 jobs since 2010.
• Marin County inflation is likely to rise close to 3 percent per year from 2016-2019;
• Marin County has median housing prices over $1.08 million, among the highest in California, a reflection of both a low housing inventory and low interest rates;
• Marin County’s employment growth is toward services;
• Marin County added approximately 370 payroll businesses since 2015;
• Commercial properties have reduced vacancies and prices have increased over 10 percent since 2015, with commercial rents near $2.95 per square foot;
• Rental home prices in San Rafael have recently been estimated at an average of over $3,300 per month for a two-bedroom apartment; and Wages in Marin County are relatively high versus state and suburban county averages, but are outpaced by urban areas in the Bay Area, helping to explain regional commute patterns.
Healthcare/Biotech
• Hospitals, health care organizations and biotechnology companies have been leasing, purchasing or building hundreds of thousands of square feet throughout Marin County
• The combination of health-related tenants taking large amounts of Marin County commercial space off the market and sales of a number of the county’s top properties is changing the economics of doing business in Marin.
Marin County Market Overview
17
18
l Sacramento
70 Miles
l Santa Barbara
280 Miles
l Los Angeles
350 Miles
l San Francisco
6 Miles
l Las Vegas
420 Miles
l Oakland
10 Miles
DISTANCE TO:
19
Demographics
20
Owner/User Scenario
21
Own vs. Lease Comparison With SBA 504 Loan
(1) Depreciation Assumptions: Depreciable building cost is 80% of $5,950,000 property value; Depreciated over 39 years; Borrower tax rate is 35.00%
(2) Owner’s equity calculation assumes 2.00 % annual appreciation rate and constant interest rate noted above. Rate may be subject to change. This is not an offer or commitment to lend and is intended for discussion purposes only. All financing is subject to credit approval and determination of SBA eligibility by the Wells Fargo SBA Lending group and additional collateral may be required. The amounts provided are estimations and the actual fees, costs and monthly payment will vary depending on your specific loan transaction. The interest rate is dependent on the Wall Street Journal Prime and is subject to change.
Loan Information - Dated 10/23/2019Wells Fargo Loan SBA Loan Combined
Loan Amount: $3,570,000 $1,785,000 $5,355,000
Interest Rate: 3.70% 3.45% 3.62%
Amortization in Years: 25 25
Term in Years: 25 25
Monthly Payments $18,257 $8,888 $27,145
OwnPurchase AssumptionsTotal Project Cost $5,950,000
Start-up CostsCash Down Payment: 10% of Total Project $595,000
Monthly Cost Estimate Per SF Amount
Mortgage Payment $4.18 $27.145
Operating Costs (includes CAMS) $1.44 $9,341
Total Monthly Costs $5.62 $36,486
Monthly Ownership BenefitsDepreciation Estimate (1) $3,560Appreciation Estimate (2% annualized) $9,917
Total Ownership Benefits $13,477
Total Effective Monthly Cost $23,009
LeaseLease Assumptions:Monthly Rent $36,457
Start-up CostsPrepaid Rent/Security Deposit (2 months rent) $72,914
Monthly Cost Estimate Per SF Amount
Rent Payment $5.68 $36,457
Operating Costs (includes CAMS) $1.44 $9,341
Total Monthly Costs $7.06 $45,798
Monthly Ownership BenefitsDepreciation Estimate N/AAppreciation Estimate N/A
Total Ownership Benefits N/A
Total Effective Monthly Cost $45,798
Nicholas Lorenz213.369.9967
22
Cost Segregation Analysis
ESTIMATED BENEFIT
In order to illustrate the benefits of cost segregation, an estimate of your benefit has been prepared based on the information you provided. Upon our review of this information, it is our opinion that a significant tax deferral may be realized by conducting an engineering based Cost Segregation Study.
Loan Information - Dated 10/23/2019Total Building Costs $3,867,500
Less: Land Value $0
Total Depreciable Basis $3,867,500
Estimated Marginal Tax Rate 50%
Dante Romano, PMP, CCSPCurt Gautreau, CPA, CCSP
Joel Dobrin805.764.0309
Tax Year Increased Depreciation Expected Increase of CashBonus $657,475 $328,7392019 ($702) ($351)2020 ($16,858) ($8,429)2021 ($16,858) ($8,429)2022 ($16,858) ($8,429)2023 ($16,858) ($8,429)
Totals $589,339 $294,670
The estimated potential benefit shown above is based on our experience with cost segregation studies completed on similar properties. Actual benefits may differ from the estimate shown above.
*Full Report is available upon request
SUMMARY OF NET PRESENT VALUE BENEFITS
10 Year Net Present Value 20 Year Net Present Value 30 Year Net Present Value
$266,347 $321,704 $212,360
23
NET PRESENT VALUE
24
BRIAN HENNESSEYSenior Vice [email protected] License #00481388
CAMERON BAIRDSenior Vice [email protected] License #01503816
AVISON YOUNG6711 Forest Lawn DriveLos Angeles, CA 90068www.avisonyoung.com