3.27 ac land development › d2 › fmcd47_02dbwufcn8...of many markets, traditional malls, shopping...

KIDDER.COM

3.27 AC LAND DEVELOPMENT

INVESTMENT OPPORTUNITY | PRIME COMMERCIAL LAND | ROCKLIN, CA

ROCKLIN RD

SIERRA COLLEGE BLVD

ROCKLIN RD

GRA

NIT

E D

R

SUBJECT PROPERTY

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

This Marketing Brochure 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. Kidder Mathews has not made any investigation, and makes no warranty or representation, 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 the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

01INVESTMENT SUMMARY

02MARKET OVERVIEW

KIDDER.COM

GARRETT STROHMAIER

[email protected] N° 02051117

EXCLUSIVELY LISTED BY

KEVIN SHEEHAN

916.751.3601 [email protected] N° 0096093

TYLER BOYD


TABLE OF CONTENTS

3ROCKLIN ROAD LAND OFFERING MEMORANDUM KIDDER MATHEWS

01INVESTMENT

SUMMARYTHE OFFERING

INVESTMENT HIGHLIGHTS

LOCATION OVERVIEW


INVESTMENT SUMMARY

PROPERTY OVERVIEW

APN 045-132-001-000 & 045-132-003-000

Price $2,535,192

Price/SF $17.11/SF

Total Land SF ±148,104 SF

Total Land AC 3.27 AC across two (2) parcels

Zoning C-2 (General Commercial)

Land Condition Raw

Topography Level

Frontage ±477 feet along Rocklin Rd

RO

CK

LIN R

D

APARTMENT BUILDING OFFERING MEMORANDUM KIDDER MATHEWS 5

DESIRABLE LOCATION Core site within the affluent, growing community of Rocklin, CA

DEVELOPMENT OPTIONALITY Flexible zoning coupled with trade area demand for various commercial products

ROCKLIN ROAD ±477 ft of street frontage

±22,000 cars per day and steadily growing

INVESTMENT HIGHLIGHTS

LOCATED across the street from Sierra College

0.1 MILES to the I-80 on/off ramp

VIABLE OPPORTUNITIES Retail (Quick-Service, Gas Station, Shopping Center); Multifamily; Office / Medical Office (Small Office Park, Build-to-Suit, Standalone Building(s)), “Land Bank”

3.27 ACCOMMERCIAL LAND

22,000AVERAGE DAILY TRAFFIC

ZONINGFLEXIBLE W/ TRADE AREA DEMAND

FOR COMMERCIAL PRODUCTS

I-80HIGHLY ACCESSIBLE (0.1 MI)

ROCKLIN RD

SUBJECT PROPERTY

ROCKLIN ROAD LAND OFFERING MEMORANDUM KIDDER MATHEWS 5

LOCATION OVERVIEW

Rocklin, California is a suburban area that is among the most affluent submarkets in Sacramento.

The area’s high income levels equate to strong buying power and an abundance of retail product. By square footage, Roseville/Rocklin is the metro’s largest retail submarket and includes Westfield Galleria at Roseville, one of Sacramento’s most prominent shopping venues. The 1.16 million-SF super regional mall is home to tenants such as Apple Store, Kate Spade, Nordstrom, and Ruth’s Chris Steak House.

Construction this cycle has been

held in check, and few large projects are under way. However, a new shopping center may soon break ground. The limited amount of new product, combined with positive demand nearly every year this cycle, has allowed vacancies to fall to an all-time low in 2019. The submarket’s curbed availabilities have firmly placed leverage on the side of area landlords: Rent growth in most recent quarters is outpacing the strong metro average. Moreover, asking rents are well above the Sacramento norm.

Roseville/Rocklin is an actively traded area. Annual sales volume historically averages about $100 million, but in most recent years has significantly exceeded that mark. However, investment activity in 2019 is off to a modest start. (source: Costar)

158,936

TOTAL POPULATION (3 MI RADIUS)

6.94%

POPULATION GROWTH (3 MILE RADIUS)

$94,522

MEDIAN HOUSEHOLD INCOME (5 MI RADIUS)

$469,083

MEDIAN HOME VALUE (5 MI RADIUS)

SOURCE: CITY OF ROCKLIN WEBSITE


SUBJECT PROPERTY

N

Rocklin Event Center

Quarry Park Adventures

Springview Middle School



05MARKET

OVERVIEWROCKLIN/ROSEVILLE

SACRAMENTO


ROCKLIN/ROSEVILLE AREASALES

The local investment market is off to a slow start in 2019. Sales volume trails the pace of most recent years, primarily due to a decline in deal flow and a lack of large-scale trades. One of the most notable sales thus far was for Woodcreek Village Shopping Center. In April, several partners acquired the neighborhood center for $12.9 million ($441/SF), at a reported cap rate of 7.1%. Notable tenants included Coldwell Banker, Starbucks, and Wells Fargo Bank. Raley’s anchor space was not part of the transaction. Area demographics are healthy: The three-mile radius

around the center is home to nearly 100,000 residents, and median household incomes top $90,000.

Two of the largest recent deals involved Roseville Center. In December 2018, San Diego-based CIRE Partners acquired a 96,771-SF portion of the power center from Costa Mesa-based Donahue Schriber Commercial Real Estate for $31.8 million ($329/SF). Center tenants included Big 5 Sporting Goods, Petco, and Target. The sale similarly did not include Raley’s center location.

However, in July 2018, San Francisco-based Myron Zimmerman Investments acquired Raley’s 66,890-SF portion of Roseville Center for $9.9 million ($148/SF) at a reported cap rate of 5.7%. The seller was San Francisco-based Alioto Fish Company. Median household incomes within a three-mile radius of the center are approximately $75,000.

The Roseville Center transactions helped propel sales volume in 2018 past $100 million, and the submarket’s historical average, for a

MARKET OVERVIEW

third consecutive year. Perhaps most notably, the average transactional price in 2018 rose to more than $270/SF, a cyclical high. The average price in 2017, by comparison, was $220/SF. Furthermore, inventory turnover soared to double digits, after averaging roughly 6% from 2015-17.

R o s e v i l l e / R o c k l i n a t t r a c t s institutional capital. For example, some of the most active buyers this cycle includes Beachwood, Ohio-based SITE Centers, a public REIT, and private equity giant Blackstone Group. Still, the majority of investment this cycle has originated from private buyers located within the metro. (source: Costar)

15.5K 12 MONTH DELIVERED SF

152K SF CURRENTLY UNDER CONSTRUCTION

$1.88 MARKET RENT/SF

$224 MARKET SALE PRICE/SF


SACRAMENTO AREARETAIL SUMMARY

Sacramento’s retail vacancies fell to an all-time low to start 2019. Metro job growth has been strong for most years this cycle, and incomes are roughly in line with the California median. Consequently, purchasing power here is healthy. As is typical of many markets, traditional malls, shopping centers, and necessity-based stores dominate the retail footprint. Still, a small handful of unique redevelopment projects may be changing perceptions. Downtown, on the heels of the Golden 1 Center reaching its third year of operations, appears to have momentum as a live/work/play destination.

Limited supply growth this decade combined with steady demand has had a positive impact on fundamentals. Vacancies, while trending above the national average, have compressed each year this cycle, and rent growth was among the nation’s strongest at 2019's halfway point. Deliveries have picked up in recent years compared to earlier in the decade, but the construction pipeline has slowed.

Since 2014, the local sales market has notably outperformed the metro's historical average. However,

investment volume in 2019 is well below the recent norm.

SALES

One of the most noteworthy sales thus far was for a portion of Folsom Square. In March, a Bay Area-based individual acquired the 74,550-SF property for $15.3 million ($206/SF) at a reported cap rate of 6.2%. Located at 1010 E. Bidwell St. in Folsom, the asset was 100% leased at the time of sale to multiple tenants, including HomeGoods and UFC Gym.

One of the largest recent deals involved Sunrise Mall. In a December 2018 REO sale, Great Neck, New York-based Namdar Realty Group acquired a 433,000-SF portion of the mall for $25.6 million ($59/SF).

Located in the Orangevale/Citrus Heights Submarket, occupancy at the time of sale was approximately 72%. Tenants included Elephant Bar Restaurant, Macy’s, and Regal Cinemas.

In recent years, sales volume has notably accelerated compared to earlier in the cycle. From 2014-18, investment volume averaged approximately $770 million, or about 40% greater than the long-term norm. While the average transactional price trails the national average, portfolio trades have had a substantial impact on sales volume.

583K 12 MONTH DELIVERED SF

302K SF CURRENTLY UNDER CONSTRUCTION

$1.74 MARKET RENT/SF

$196 MARKET SALE PRICE/SF

(source: Costar)

KIDDER.COM

EXCLUSIVELY REPRESENTED BY

GARRETT STROHMAIER


KEVIN SHEEHAN

916.751.3601 [email protected] N° 0096093

TYLER BOYD


3.27 ac land development › d2 › fmcd47_02dbwufcn8...of many markets, traditional malls, shopping...

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