investment airport commerce ......regional demographic profile the city of redding is the county...
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www.ncpcre.com
Offered By:Offered By:
NORTHSTATE COMMERCIAL PARTNERSNORTHSTATE COMMERCIAL PARTNERS
Ken MillerKen Miller
| kenmiller@shasta.com| kenmiller@shasta.com
| (530) 768| (530) 768--16501650
AIRPORT COMMERCE CENTERAIRPORT COMMERCE CENTER
8540 AIRPORT RD., REDDING, CA8540 AIRPORT RD., REDDING, CA
INVESTMENTINVESTMENT
PROSPECTUSPROSPECTUS
Office / Retail / Fast Food 100% Leased Underserved Neighborhood
Exclusively Listed By:Exclusively Listed By:
KEN MILLERKEN MILLER
AIRPORT COMMERCE CENTERAIRPORT COMMERCE CENTER
8540 AIRPORT RD., REDDING, CA8540 AIRPORT RD., REDDING, CA
| kenmiller@shasta.com| kenmiller@shasta.com
| (530) 768| (530) 768--16501650
INVESTMENTINVESTMENT
PROSPECTUSPROSPECTUS
CONFIDENTIALITY AGREEMENT AND SELLER/BROKER ADVISORY
The information contained in this offering prospectus (aka Offering Memorandum) is proprietary and strictly confidential. It is intended
to be reviewed only by the party receiving it from Northstate Commercial Partners (NCP). This Offering Memorandum is promotional
in its nature and highlights the benefits of the Subject Property. It is not intended to present a balanced analysis of the opportunity and
does purport to contain all information required to determine the suitability of this investment for any specific buyer. t has been pre-
pared 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 to be used in place of thorough due diligence investigations and consulta-
tion with experts and advisors of the Buyer’s choosing. NCP has made no such investigation and makes no representations or warran-
ties with respect to the income or expenses for the subject property, the size and square footage of the property, its future performance
or projected return on investment. Buyer is advised to investigate all matters concerning the property including, without limitation, the
presence or absence of environmental contamination, zoning, physical condition, code deficiencies or violations (local, state and fed-
eral), ADA compliance, neighborhood influences and title report. Buyer will rely solely on the advise and counsel of its designated con-
sultants in evaluating each and every aspect of the property. Current or future occupancy levels are not warranted or guaranteed and
no representations are made regarding future performance or the intentions of any specific tenant.
The information contained in the Offering Memorandum has been obtained from sources we deem reliable, but we make no guaranty
of its accuracy. NCP has not verified the information in the offering memorandum.
THE PROPERTY IS SHOWN BY APPOINTMENT ONLY. DO NOT DISTURB TENANTS.
PLEASE CONTACT NORTHSTATE COMMERCIAL PARTNERS FOR MORE INFORMATION.
EXCLUSIVELY LISTED BY
Ken Miller Northstate Commercial Partners
530-768-1650 2070 Shasta St.
kenmiller@shasta.com Redding, CA 96001
CA Lic. #: 00818540 www.ncpcre.com
Exclusively Listed By:Exclusively Listed By:
KEN MILLERKEN MILLER
AIRPORT COMMERCE CENTERAIRPORT COMMERCE CENTER
8540 AIRPORT RD., REDDING, CA8540 AIRPORT RD., REDDING, CA
| kenmiller@shasta.com| kenmiller@shasta.com
| (530) 768| (530) 768--16501650
The Region: Redding is the center of a 5 county territory in Northern California and serves as the provider of medical, financial, shopping,
entertainment and government services for a population in excess of 300,000 people.
The Neighborhood: The location is considered remote/rural. However, the neighborhood is expected to see increase activity and growth as
the VA clinic is now under construction. The Stillwater Business Park is also nearby.
The Property: Comprised of 3 separate structures and is situated on 1.15 acres of land. Primary structure is ±7,000 SF single tenant office/
commercial structure. It was originally designed to support 4-5 tenants, with multiple storefronts and rear door exits. There are 2 drive-thru
kiosks-style buildings in front. One is 800 SF and the other is 416 SF.
The Opportunity: Airport commerce center presents a stable, fully leased retail/office investment at a relatively low price. Stable occupancy
& tremendous growth submarket. The area surrounding the subject property boasts over 1,300 day time employees along the airport Rd.
corridor.
OFFERINGOFFERING
SUMMARYSUMMARY
AIRPORT COMMERCE CENTERAIRPORT COMMERCE CENTER
8540 AIRPORT RD., REDDING, CA8540 AIRPORT RD., REDDING, CA
PROPERTY TYPE Office/Retail/Fast Food
PROPERTY NAME Airport Commerce Center
ADDRESS OF SUBJECT 8540 Airport Rd., Redding CA
BUILDING SIZE 3 buildings totaling 8,216 SF
OCCUPANCY /
TENANTS / LEASE TYPE 100% / 3 / Modified Gross
OFFERING PRICE $1,200,000
PROJECTED YIELD 6%
YEAR BUILT 2004
COUNTY Shasta
PARCEL NUMBER 054-400-027
GROSS ACREAGE 1.15 Acres
PARKING 23 + drive-thru stacking
CONSTRUCTION TYPE Steel & wood Frame Structure & Stucco Exterior
EXTERIOR Stucco
FOUNDATION Concrete
ROOF Flat
HVAC Central
SECURITY/FIRE No fire sprinklers
ELECTRICAL Pacific Gas & Electric
FLOOD ZONE Unknown
SEISMIC ZONE Unknown
INVESTMENT HIGHLIGHTS
Low rents will support continuous occupancy
100% occupied
2 Fast-food buildings with drive-thru. Very hard to find
Underserved market
Strong workforce population
Solid traffic patterns
VA clinic will open in 2 years causing traffic to multiply
Buyer to verify all specifications
OFFERINGOFFERING
SUMMARYSUMMARY
Future VA Clinic (under construction) 2.6 miles from subject property
AIRPORT COMMERCE CENTERAIRPORT COMMERCE CENTER
8540 AIRPORT RD., REDDING, CA8540 AIRPORT RD., REDDING, CA
Purchase Price: $1,200,000
Net Rental Area: 8,216 SF
Price/Square Foot: $146.06
Typical Financing: (no Seller Financing is offered in this Offering Memorandum)
Type: Conventional
Interest Rate: 5.25%
Amount (70% LTV): $840,000
Down Payment: $360,000
Years Due | Due Date: 30 | 10
Monthly Payment: $4,638
Annual Payment: $55,662
FINACIAL ANALYSIS (rounded)
Gross Potential Income: $110,400
Expense recovery (OPEX): $0
Scheduled Gross Income: $110,400
Vacancy/Credit Loss (5%): $5,520
Effective Gross Income: $104,880
Less Operating Expenses: $31,464
Net Operating Income: $73,416
Annual Debt Service
(based on 70% LTV, 5.25%, 30 yrs)
$55,662
Pre-Tax Cash Flow: $17,754
Stabilized Capitalization Rate: 6%
VALUEVALUE
INDICATORSINDICATORS
Partnership Health Plan 1.4 miles from subject property
Exclusively Listed By:Exclusively Listed By:
KEN MILLERKEN MILLER
AIRPORT COMMERCE CENTERAIRPORT COMMERCE CENTER
8540 AIRPORT RD., REDDING, CA8540 AIRPORT RD., REDDING, CA
| kenmiller@shasta.com| kenmiller@shasta.com
| (530) 768| (530) 768--16501650
CURRENT TERM
TENANT SPACE SIZE
(NUSF)
CAM
PMT.
NRSF ORIGINAL
START
FROM TO CUR RNT
(INCL. CAM)
RENT
(NRSF)
RENT
INCREASE
DATE OPTIONS NOTES
CHYBA 8544 7,000 $0 7,000 8/30/2012 7/1/2018 6/30/2021 $5,150 $0.74 None N/A None Tenant pays for it’s own trash removal.
Smokin’ Joe’s
8540 800 $0 800 5/1/2012 5/1/2015 4/30/2022 $2,475.25 $3.09 None N/A None
Dutch Brothers 8548 416 $0 416 7/1/2006 7/1/2016 6/30/2021 $2,766.53 $6.55 None N/A None
TOTALS 8,216 $10,391.78
RENT ROLLRENT ROLL
&&
EXPENSE DETAILEXPENSE DETAIL
Expenses* Monthly Annual
Property Taxes $956 $11,468
Pest Control $50 $600
Landscaping $250 $3,000
Electricity (PG&E) $130 $1,560
Garbage $407 $4,880
Insurance $386 $4,634
Management $300 $3,600
TOTAL $2,479 $29,742
*Provided by Seller. Buyer to verify.
AIRPORT COMMERCE CENTERAIRPORT COMMERCE CENTER
8540 AIRPORT RD., REDDING, CA8540 AIRPORT RD., REDDING, CA
PARCELPARCEL
MAPMAP
AIRPORT COMMERCE CENTERAIRPORT COMMERCE CENTER
8540 AIRPORT RD., REDDING, CA8540 AIRPORT RD., REDDING, CA
NEARBY EMPLOYERSNEARBY EMPLOYERS
US Forest Service 1.2 miles from subject property
Redding Electric Utility 1.2 miles from subject property
Pacific Gas & Electric 2.7 miles from subject property
Bureau of Land Management 2.5 miles from subject property
AIRPORT COMMERCE CENTERAIRPORT COMMERCE CENTER
8540 AIRPORT RD., REDDING, CA8540 AIRPORT RD., REDDING, CA
NEIGHBORHOODNEIGHBORHOOD
AERIALAERIAL
Redding Municipal Airport
SUBJECT PROPERTY
Major Employers (Employment)
Vestra Engineering (15)
US Forest Service Regional Office (200)
Redding Distributing (30)
Sharrah Dunlap Sawyer (25)
Apria Healthcare (15)
VA Retirement Home (50)
Captive Aire (50)
PG&E Payment Office (60)
Redding Electric Utility (150)
Partnership Health Plan (80)
Moore’s Flour Mill (30)
Bureau of Land Management (70)
AIRPORT COMMERCE CENTERAIRPORT COMMERCE CENTER
8540 AIRPORT RD., REDDING, CA8540 AIRPORT RD., REDDING, CA
Overview
Comprised of 3 separate structures and is situated on 1.15 acres of land. Primary structure is ±7,000 SF single tenant office/commercial structure. It was origi-
nally designed to support 4-5 tenants, with multiple storefronts and rear door exits. There are 2 drive-thru kiosks-style buildings in front. One is 800 SF and
the other is 416 SF.
Neighborhood
The location is considered remote/rural. However, the neighborhood is expected to see increased activity and growth as the VA clinic is now under construc-
tion and will be open soon. The Stillwater Business Park is also nearby.
Regional Demographic Profile
The City of Redding is the county seat of Shasta County, California. The region is served by Interstate 5 running north/south, Hwy 44 running east toward Mt.
Lassen and Hwy 299 running west toward Eureka and east toward Burney. Redding’s population is 94,361, making it the largest c ity in the 5 county Shasta
Cascade region. It serves as the regional center for retail, government, health care and financial services. There are two major hospitals in the city (Shasta Re-
gional and Dignity Health). The VA has commissioned a local developer to construct a 100,000 SF state-of-the-art clinic and Dignity Health is adding a second,
140,000 SF medical facility that will serve as a wellness center to prevent illness, as much as treat it. Shasta Community Health will soon break ground on a
28,000 second clinic and Hill Country Clinic is exploring plans to construct a 35,000 SF clinic in the vicinity of the Subject Property.
Recreational and Economic Snapshot
Redding boasts the most vigorous urban fishery in the state of California. The Sacramento River runs through the center of the community offering salmon,
trout and steelhead fishing opportunities. Lake Shasta is 20 minutes to the north and Whiskey Town Lake is 15 minutes to the west. Each offers boating, sailing,
camping and house-boating services. Mt. Shasta is 1 hour north and Mt. Lassen is 1 hour to the east. In addition to tourism and recreation, Redding provides a
diversified service economy with employment spread across a wide range of professions, including health care services, retail, and tourism. In 2014, Redding’s
economic development corporation teamed up with a local investment consortium to form the Shasta Venture Hub. This group of angel investors has funded
a number of startups and several have matured into viable worldwide businesses with roots in the local community. A few examples include NComputing
(desktop virtualization) You Caring (crowd-funding platform), TechniSoil (organic alternative to traditional asphalt paving products), and AirCover (drones).
Redding is also the home of a host of nationally recognized recreational product manufacturers, such Yates Gear, Sea Breacher and Jetovator.
CULTURAL AND CULTURAL AND
ECONOMIC ECONOMIC
PROFILEPROFILE
Historic Cascade Theater—Downtown New project Downtown Fly fishing on the Sacramento River
AIRPORT COMMERCE CENTERAIRPORT COMMERCE CENTER
8540 AIRPORT RD., REDDING, CA8540 AIRPORT RD., REDDING, CA
Counterintuitive, yet true!
Did you know that Redding CA outperforms all North
State cities on the measure of “per capita” retail sales and is
tied with San Francisco among all MSA’s north of Fresno?
Per the U.S. Bureau of Labor Statistics*, here are the num-
bers:
City Annual per capita sales
Sacramento $17,000
San Francisco $22,000
Redding $22,000
*2016
Population 1 Miles 3 Miles 5 Miles
2010 Population 1,583 22,895 63,563
2019 Population 1,557 23,130 64,421
2024 Population 1,605 23,782 66,082
Households
2000 Households 343 7,305 21,949
2010 Households 585 8,374 24,227
2019 Households 601 8,815 25,576
2024 Households 614 8,990 26,030
2019 Owner Occupied Housing Units 510 5,494 15,416
2019 Renter Occupied Housing Units 90 3,321 10,160
2019 Vacant Housing Units 23 308 951
Household Income 1 Miles 3 Miles 5 Miles
2019 Average Household Income $107,918 $74,296 $71,239
2024 Average Household Income $113,270 $86,243 $83,469
2019-2024 Annual Rate 1.0% 3.2% 3.4%
Business Summary
Total Businesses 161 995 4,521
Total Employees 1,140 7,446 34,923
Residential Population per Business 9.7 to 1 23.2 to 1 14.3 to 1
Employee Population per Business 7.1 to 1 7.5 to 1 7.7 to 1
Lake Shasta & Mt. Shasta
Sundial Bridge. Downtown.
DEMOGRAPHICDEMOGRAPHIC
PROFILEPROFILE
Section of the Sacramento River Trail System
Northstate Commercial Partners
2070 Shasta Street
Redding, CA 96001
530.768.1650
530.768.1471 Fax
www.ncpcre.com
BRE #: 02018111
THE MAP IS NOT THE TERRITORY
____________
MAKE SURE YOU ARE WORKING WITH AN EXPERT
THAT KNOWS THE MARKET
For all your Northstate investment needs, turn to the market leader.
Northstate Commercial Partners brings nearly 50 years of combined experience to every assignment.
With affiliations in the SIOR, ICSC & CCIM (candidate),
Northstate Commercial Partners can help you achieve your investment real estate goals.
KEN MILLER ARMANDO ELIZONDO DONNA POTTORFF
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