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Offering Memorandum
Pinole Gateway Shopping CenterPinole, CA
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 Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
NON-ENDORSEMENT NOTICE
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.
CONFIDENTIALITY AND DISCLAIMER
Investment Sales:
exclusively listed
PINOLE GATEWAY SHOPPING CENTERP i n o l e , C A
Kirk Trammell Senior Managing Director InvestmentsPALO ALTOTel: 650-391-1809 Fax: 650-391-1710kirk.trammell@marcusmillichap.com License: CA 01038657
David Cutler Senior AssociatePALO ALTOTel: (650) 391-1753Fax: (650) 391-1710David.Cutler@marcusmillichap.com License: CA 01514751
Joshua JohnsonSenior AssociatePALO ALTOTel: (650) 391-1784Fax: (650) 391-1710Joshua.Johnson@marcusmillichap.com License: CA 01930127
Vince SchwabSenior Managing Director InvestmentsSAN FRANCISCOTel: 415-625-2171 Fax: 415-963-3013vince.shwab@marcusmillichap.com License: CA 00840133
Exclusively listed by:
OFFICES NATIONWIDEwww.marcusmillichap.com
Table of Contents
Pinole Gateway Shopping Center
EXECUTIVE SUMMARYOffering Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
PROPERTY DESCRIPTIONProperty Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Aerial Photo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Local Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
FINANCIAL ANALYSISRent Roll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1510-Year Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
TENANT OVERVIEWTenant Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
MARKET OVERVIEWLocation Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
summaryE X E C U T I V E S U M M A R Y
EXECUTIVE SUMMARY
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y00104322
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WPinole Gateway Shopping Center
Offering Highlights
TENANT GLALEASE
EXPIRATIONLEASE TYPE
Orangetheory Fitness 3,022 Apr-27 NNN
Jovance Salon and Barbering 2,455 Jul-27 NNN
The Habit Burger 2,450 Dec-26 NNN
Tropical Smoothie Café 1,700 Mar-27 NNN
Cookie Dough Parlor 1,444 Aug-27 NNN
Tenants
PINOLE GATEWAY SHOPPING CENTER1400-1424 Pinole Valley Road, Pinole, CA 94564
Offering Price $10,350,000
Current Occupancy 100%
Gross Leasable Area (GLA) 11,071
Year Built 2016
Lot Size 2.01 Acres / 87,381 SF
Offering Summary
Year 1 Cap Rate 5.30%
Year 1 Net Operating Income $548,622
Vital Data
Marcus & Millichap has been selected to exclusively market for sale a portion of the Pinole Gateway Shopping Center in Pinole, California . This offering represents the rare opportunity to acquire a newly constructed 11,071-square-foot trophy multi-tenant retail center in the San Francisco Bay Area . Pinole Gateway Shopping Center is anchored by a strong performing Sprouts Farmers Market (NAP), one of the most successful natural and organic grocers in the nation . The asset is 100% leased to The Habit Burger, Orangetheory Fitness, Jovance Salon and Barbering, Tropical Smoothie, and Cookie Dough Parlor . The site is ideally located at the interchange of Pinole Valley Road and Interstate 80 . Pinole Gateway Shopping Center is visible from Interstate 80 and also has a landmark pylon sign that is visible from the freeway . More than 180,000 vehicles pass the site each day on Interstate 80, making this retail center one of the most high-profile shopping centers in the East Bay .
The subject property has a total of 11,071 square feet of gross leasable area that is currently configured into five tenant spaces. There is a traffic signal and dedicated left turn lane at the property; this greatly improves access to the center and allows for free flow of traffic in and out of the property . The building improvements were constructed in 2016 and are in excellent condition . Parking is currently provided in a surface lot at a ratio of 6 .54 spaces per 1,000 square feet .
This asset is positioned for long-term success due to its prominent location and strong tenant mix . In addition to being visible and easily accessible from Interstate 80, the center has a grocery anchor that creates significant drawing power. Due to the lack of competitive natural and organic grocers in the immediate area, Sprouts draws customers from beyond the typical trade area for a grocery store. The traffic to the center greatly benefits the restaurant and personal services tenants in the shop space and makes it attractive to a wide range of retail users . The current retail uses are complementary and include a fitness tenant, health and beauty spa, two fast casual restaurants, and a dessert/treat shop .
Investment Overview
Investment Highlights■■ Brand New Trophy Retail Center Shadow-Anchored by Sprouts Farmers Market
■■ Core San Francisco Bay Area Asset in a Supply-Constrained Market
■■ High Visibility Location at the Interchange of Pinole Valley Road and Interstate 80
■■ Sprouts Farmers Market Creates Significant Drawing Power for the Property
■■ Good Mix of Restaurant and Personal Service Uses
■■ All Tenants Have a Minimum Term of Ten Years and Rent Increases Every Five Years
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y00104323
EXECUTIVE SUMMARYE
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WPinole Gateway Shopping Center
descriptionP R O P E R T Y D E S C R I P T I O N
PROPERTY DESCRIPTIONE
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Pinole Gateway Shopping Center
6This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
Property Details
SITE DESCRIPTION
Site Size 2.01 Acres
Parking Ratio 6.54 Per 1,000 SF
Topography Generally Level
PARCELS
Number of tax parcels One
APN 401-410-019
CONSTRUCTION
Foundation Reinforced Concrete Slab
Framing Wood Frame
Exterior Painted Stucco and Stone
Parking Surface Pavers and Asphalt
Roof Built-Up
MECHANICAL
HVAC Roof-Mounted Package Units
Fire Protection Fire Sprinklers and Alarm
Utilities Public; All to Site
ZONING
Pinole Valley Road Land Use Plan; Office Professional Mixed Use
ACCESS POINTS
Located Between Interstate 80 and Henry Avenue, with a Signalized Entrance Mid-Block
UTILITIES
Gas Pacific Gas & Electric (Tenant Responsible)
Electric Pacific Gas & Electric (Tenant Responsible)
Water East Bay Municipal Utilities District (Tenant Responsible)
Sewer West County Wastewater District (Tenant Responsible)
Trash Richmond Sanitary Service (Tenant Responsible)
No Vacant Space; 100% Leased
AVAILABLE SPACE CONDITION
Aerial Map
Pinole Vista Crossing
Pinole Vista Shopping Center
Subject Property
PROPERTY DESCRIPTION
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Pinole Gateway Shopping Center
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
Aerial Map
Interstate 80
PROPERTY DESCRIPTIONE
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Pinole Gateway Shopping Center
8This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
Subject Property
Interstate 80
Pinole Gateway Shopping Center
Local Map
PROPERTY DESCRIPTION
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Pinole Gateway Shopping Center
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
Pinole Gateway Shopping Center
Regional Map
PROPERTY DESCRIPTIONE
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Pinole Gateway Shopping Center
12This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
analysisF I N A N C I A L A N A LY S I S
Rent Roll
SUITE TENANT NAME SQFT % OF PROJECT
LEASESTART
LEASEEND
RENEWAL OPTIONS
LEASE TYPE PERIOD ANNUAL
RENTMONTHLY RENT
MONTHLY RENT PSF
1400 Orangetheory Fitness 3,022 May-17 Apr-27 Two, 5-Year NNN Year 1 $160,166 $13,347 $4.42
27.3% w/15% Admin Fee Year 6 $176,183 $14,682 $4.86
Year 11 (Option 1)* $181,468 $15,122 $5.00
Year 16 (Option 2)* $210,371 $17,531 $5.80
1406 Jovance Salon & Barbering 2,455 Aug-17 Jul-27 Two, 5-Year NNN Year 1 $117,840 $9,820 $4.00
22.2% w/15% Admin Fee Year 6 $129,624 $10,802 $4.40
Year 11 (Option 1) $142,584 $11,882 $4.84
Year 16 (Option 2) $156,852 $13,071 $5.32
1412 The Habit Burger 2,450 Dec-16 Dec-26 Three, 5-Year NNN Year 1 $129,850 $10,821 $4.42
22.1% w/10% Admin Fee Year 6 $142,835 $11,903 $4.86
Year 11 (Option 1) $157,119 $13,093 $5.34
Year 16 (Option 2) $172,823 $14,402 $5.88
Year 21 (Option 3) $190,096 $15,841 $6.47
1418 Cookie Dough Parlor 1,444 Sep-17 Aug-27 Two, 5-Year NNN Year 1 $69,312 $5,776 $4.00
13.0% w/15% Admin Fee Year 6 $76,243 $6,354 $4.40
Year 11 (Option 1) $83,868 $6,989 $4.84
Year 16 (Option 2) $92,257 $7,688 $5.32
1424 Tropical Smoothie 1,700 Apr-17 Mar-27 Three, 5-Year NNN Year 1 $85,850 $7,154 $4.21
15.4% w/15% Admin Fee Year 6 $94,435 $7,870 $4.63
Year 11 (Option 1) $103,887 $8,657 $5.09
Year 16 (Option 2) $114,274 $9,523 $5.60
Year 21 (Option 3)
Totals 11,071 $563,018 $46,918
100%
*Rent increases 3.0% annually during the option periods
95% of FMR but not less than rent in 2nd option period
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FINANCIAL ANALYSIS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
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Pinole Gateway Shopping CenterFINANCIAL ANALYSIS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
PROPERTY OPERATING PARAMETERS
Market Rents $4.33
Lease Type NNN w/15% Admin Fee
Growth Rates
Market Rents
Year 1 2.50%
Therafter 2.50%
Operating Expenses 3.00%
Real Estate Taxes 2.00%
Capital Reserves 3.00%
General Vacancy
Year 1 2.00%
Therafter 2.00%
Operating Expenses (Year 1)
Real Estate Taxes $130,576
Special Assessments $4,464
Property Insurance $4,400
Maintenance $11,000
Utilities $4,000
Landscaping $2,200
Sweeping $1,200
Phone/Alarm Monitoring $1,000
Property Management $21,880
Total Operating Expenses $180,720
$16.32 SF/YR
Amount Reimbursed by Tenants $181,210
PROPERTY TIMING
Start of Analysis October-2017
End of Analysis September-2027
Analysis Period 10 Years
MARKET LEASING ASSUMPTIONS
New Tenants Renewal Tenants
Renewal Probability 30% 70%
Market Rents (SF/MO): $4.33 $4.33
Downtime 6 Months 0 Months
Tenant Improvements $20.00 SF $5.00 SF
Leasing Commissions 5.00% 0.00%
Rent Escalation 10% Midterm 10% Midterm
Lease Term 10 Years 10 Years
Lease Type NNN w/15% Admin Fee NNN w/15% Admin Fee
Assumptions
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FINANCIAL ANALYSIS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
10 Year Cash Flow
For the Years Ending: Year 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10$/SF Sep-2018 Sep-2019 Sep-2020 Sep-2021 Sep-2022 Sep-2023 Sep-2024 Sep-2025 Sep-2026 Sep-2027
Potential Gross Revenue Base Rental Revenue $50.86 $563,018 $563,018 $563,018 $563,018 $586,842 $619,320 $619,320 $619,320 $619,320 $640,836 Absorption & Turnover Vacancy 0.00 0 0 0 0 0 0 0 0 0 0 Scheduled Base Rental Revenue 50.86 563,018 563,018 563,018 563,018 577,459 619,320 619,320 619,320 619,320 632,125
Expense Reimbursement Revenue Real Estate Taxes 11.79 130,575 133,186 135,851 138,568 141,339 144,166 147,049 149,990 152,991 156,049 Special Assessments 0.40 4,464 4,598 4,736 4,877 5,024 5,175 5,330 5,490 5,654 5,823 Property Insurance 0.40 4,401 4,532 4,668 4,807 4,952 5,101 5,254 5,411 5,574 5,741 Maintenance 1.14 12,649 13,029 13,420 13,823 14,237 14,665 15,104 15,558 16,024 16,503 Utilities 0.40 4,467 4,602 4,739 4,882 5,027 5,180 5,333 5,495 5,659 5,830 Landscaping 0.23 2,530 2,606 2,684 2,766 2,846 2,933 3,022 3,112 3,205 3,301 Sweeping 0.12 1,380 1,421 1,465 1,509 1,554 1,601 1,648 1,697 1,748 1,801 Phone/Alarm Monitoring 0.10 1,150 1,184 1,220 1,257 1,294 1,334 1,373 1,414 1,457 1,500 Property Management 1.77 19,594 19,690 19,787 19,887 20,634 21,618 21,724 21,834 21,947 22,641 Total Reimbursement Revenue 16.37 181,210 184,848 188,570 192,376 196,907 201,773 205,837 210,001 214,259 219,189
Total Potential Gross Revenue 67.22 744,227 747,866 751,588 755,394 783,748 821,092 825,157 829,322 833,578 860,025 General Vacancy (1.34) (14,885) (14,957) (15,032) (15,108) (15,675) (16,422) (16,503) (16,586) (16,672) (17,201)
EFFECTIVE GROSS REVENUE 65.88 729,342 732,909 736,556 740,286 768,073 804,670 808,654 812,736 816,906 842,824
Operating Expenses Real Estate Taxes 11.79 130,576 133,187 135,851 138,568 141,339 144,166 147,049 149,990 152,990 156,050 Special Assessments 0.40 4,464 4,598 4,736 4,878 5,024 5,175 5,330 5,490 5,655 5,824 Real Estate Taxes 0.40 4,400 4,532 4,668 4,808 4,952 5,101 5,254 5,411 5,574 5,741 Special Assessments 0.99 11,000 11,330 11,670 12,020 12,381 12,752 13,135 13,529 13,934 14,353 Real Estate Taxes 0.36 4,000 4,120 4,244 4,371 4,502 4,637 4,776 4,919 5,067 5,219 Special Assessments 0.20 2,200 2,266 2,334 2,404 2,476 2,550 2,627 2,706 2,787 2,871 Property Insurance 0.11 1,200 1,236 1,273 1,311 1,351 1,391 1,433 1,476 1,520 1,566 Common Area Maintenance 0.09 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 Property Management 1.98 21,880 21,987 22,097 22,209 23,042 24,140 24,260 24,382 24,507 25,285 Total Operating Expenses 16.32 180,720 184,286 187,934 191,662 196,193 201,071 205,058 209,133 213,301 218,214
NET OPERATING INCOME $49.55 $548,622 $548,623 $548,622 $548,624 $571,880 $603,599 $603,596 $603,603 $603,605 $624,610
tenantsT E N A N T O V E R V I E W
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TENANT OVERVIEW
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
Tenant Summary
The Habit Restaurants, Inc. (NASDAQ: HABT) operates fast casual restaurants under The Habit Burger Grill name. It specializes in offering fresh made-to-order char-grilled burgers and sandwiches featuring choice tri-tip steak, grilled chicken, and sushi-grade albacore tuna cooked over an open flame; and salads, as well as sides, shakes, and malts. As of March 2017, the company operated approximately 170 restaurants in 15 locations in California, Arizona, Utah, New Jersey, Florida, Idaho, Virginia, Nevada, Washington, Maryland, and the United Arab Emirates. The Habit Restaurants, Inc. was founded in 1969 and is headquartered in Irvine, California.www.habitburger.com
Orangetheory Fitness is a privately owned fitness franchise based in Boca Raton, Florida. The company offers one-of-a-kind group personal training in more than 625 locations throughout the United States. They also have locations in Australia, Canada, Japan, Mexico, United Kingdom, Colombia, Israel, and Peru. Personal trainers lead members through an interval fitness concept that incorporates endurance, strength, and power ele-ments through a variety of equipment, including treadmills, rowing machines, TRX suspension training, and fre weights. In 2015, Orangetheory Fitness was ranked #455 in Inc. magazine’s “Fast-Growing Private Compa-nies” list; in 2016, it was ranked as #255 in Entrepreneur magazine’s “Franchise 500” list of top franchises in the world.www.orangetheoryfitness.com
Tropical Smoothie Cafe franchises a chain of quick casual restaurants offering a variety of signature smooth-ies, sandwiches, flat breads and salads. While it was founded 20 years ago as a smoothie concept, today over 40% of store revenues are derived from food purchases. They opened their first franchised location in 1997 in Tallahassee, Florida, and have since expanded to more than 400 locations nationwide. In 2012, private equity firm BIP Opportunities Fund purchased a controlling interest in the company.www.tropicalsmoothiecafe.com
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Pinole Gateway Shopping CenterTENANT OVERVIEW
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
Tenant Summary
Jovance Salon and Barbering specializes in transforming all hair types using care, specialized skill, and speed in an upscale and family-like environment. Jovance is unique because it is the only multicultural salon on the West Coast that provides services in an upscale atmosphere while making guests feel at home and a part of the salon family. Their line of services includes hair styling, hair coloring, lash and eyebrow treatments, manicures and pedicures, waxing, facials, make-up, and barbering. The strong teamwork of the stylists and technicians is proven by the efficiency of their services and showcased in their care for the clients so that each guest walks away feeling beautiful inside and out.www.jovance.com
Cookie Dough Parlor was inspired by a love of cookie dough and ice cream. This dessert spot offers 16 differ-ent flavors of ice cream and 12 flavors of cookie dough that is safe to eat right out of the bowl. The store sells treats that can be consumed at the scoop shop or that can be taken home and eaten later. They also sell non-edible cookie dough related merchandise that includes jewelry, clothing, and bath and body products. Cookie Dough Parlor also hosts birthday parties and offers dessert catering for events. www.cookiedoughparlor.com
overviewM A R K E T O V E R V I E W
MARKET OVERVIEWE
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22This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
Location OverviewThe city of Pinole is located in northwestern Contra Costa County on the shores of San Pablo Bay . Pinole is situated approximately 13 miles north of downtown Oakland and 22 miles northeast of downtown San Francisco . Founded in 1903, the city had an estimated population of 19,562 at the end of 2016, which represents an increase of 4 .9% over the population of 18,652 as of the 2010 census . The median household income in the city is estimated at $78,269 and the per capita income is estimated at $35,874 .
The economy of Pinole is primarily dependent on the service and retail sectors . Per-sonal, professional, and business services represent the largest portion of the econo-my, with retail outlets a close second . Health care jobs represent approximately 23% of all employment, with retail jobs constituting about 34% of local jobs . Financial, insurance, and real estate employment is the third largest sector, with about 5% of total city employment . The largest employers in the city of Pinole are West Contra Costa County Unified School District, the City of Pinole, Kaiser Health Center, Target, Lucky Supermarket, K-mart and Best Buy. The city of Pinole primarily serves as a bedroom community, with many residents commuting to nearby employment centers such as Oakland, Emeryville, Walnut Creek, Concord, and southern Solano County .
Pinole is easily accessible from Oakland, San Francisco, and the other communi-ties of the North Bay and East Bay . Intestate 80 runs through the city and is the main north-south freeway that links Sacramento to the San Francisco Bay Area . State Highway 4 intersects with Interstate 80 just north of Pinole and provides access to the Interstate 680 corridor and eastern Contra Costa County .
The city of Pinole is located in Contra Costa County, which is one of the fastest growing population regions in the state . Between 2000 and 2106, the population in Contra Costa County increased by more than 18% . This is attributed to a combina-tion of factors, including the supply of relatively inexpensive housing, availability of land for development, and a diverse and growing economy . The county has favor-able income demographics, with a median household income of $81,251 and per capital income of $41,978 . Major employers in the county include Chevron, AAA of Northern California, Bay Area Rapid Transit, John Muir Medical Center, Kaiser Per-manente, Bio-Rad Laboratories, St . Mary’s College, USS-POSCO Industries . The economy is based primarily on white-collar jobs that provide business, educational, health care, and engineering services, but there are a significant number of manufac-turing and government jobs in the county .
Major Employers - Contra Costa County
Chevron
AAA of Northern California
Bay Area Rapid Transit
John Muir Medical Center
Kaiser Permanente
Bio-Rad Laboratories
St. Mary’s College
USS-POSCO Industries
Bay Alarm Company
La Raza Market
Demographics
2021 Projected Population 19,661
2016 Estimated Population 19,562
2010 Census Population 18,652
% Growth 2016-2021 0.5%
% Growth 2010-2016 4.9%
Median Household Income $78,269
Per Capita Income $35,874
Average Household Income $97,977
MARKET OVERVIEW
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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
Demographic SummaryPOPULATION 1 Miles 3 Miles 5 Miles
• 2021 Projection
Total Population 18,626 99,786 174,904
• 2016 Estimate
Total Population 17,858 95,193 168,264
• 2010 Census
Total Population 16,917 90,099 158,358
• 2000 Census
Total Population 15,935 83,611 149,687
• Current Daytime Population
2016 Estimate 11,564 66,508 116,404
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
• 2021 Projection
Total Households 7,025 35,320 59,323
• 2016 Estimate
Total Households 6,638 33,613 57,010
Average (Mean) Household Size 2.67 2.79 2.86
• 2010 Census
Total Households 6,316 32,026 54,182
• 2000 Census
Total Households 5,639 29,163 50,950
• Occupied Units
2021 Projection 7,025 35,320 59,323
2016 Estimate 6,702 34,053 58,030
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
• 2016 Estimate
$150,000 or More 15.25% 13.25% 11.14%
$100,000 -$149,000 21.67% 19.82% 17.69%
$75,000 -$99,999 17.26% 16.24% 15.20%
$50,000 -$74,999 18.41% 18.36% 18.27%
$35,000 -$49,999 7.85% 10.08% 11.55%
Under $35,000 16.32% 19.52% 23.77%
Average Household Income $111,902 $101,785 $92,489
Median Household Income $85,409 $77,917 $69,656
Per Capita Income $41,635 $36,068 $31,518
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
• Population By Age
2016 Estimate Total Population 17,858 95,193 168,264
Under 20 21.43% 22.66% 24.04%
20 to 34 Years 19.41% 19.66% 20.89%
35 to 39 Years 5.99% 6.09% 6.64%
40 to 49 Years 13.24% 13.68% 13.94%
50 to 64 Years 24.40% 22.92% 21.02%
Age 65+ 15.51% 14.98% 13.47%
Median Age 42.62 41.23 38.82
• Population 25+ by Education Level
2016 Estimate Population Age 25+ 12,859 67,331 116,234
Elementary (0-8) 2.93% 4.19% 7.58%
Some High School (9-11) 4.37% 5.96% 7.69%
High School Graduate (12) 18.92% 20.41% 21.79%
Some College (13-15) 23.21% 25.95% 23.76%
Associate Degree Only 9.65% 9.52% 8.67%
Bachelors Degree Only 28.68% 23.12% 19.73%
Graduate Degree 10.37% 8.93% 8.52%
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Total Average Household Retail Expenditure $78,534 $75,822 $72,317
• Consumer Expenditure Top 10
Housing $23,082 $22,422 $21,680
Shelter $15,341 $14,892 $14,454
Transportation $13,531 $13,100 $12,344
Personal Insurance and Pensions $8,536 $7,975 $7,323
Food $8,327 $8,066 $7,739
Health Care $4,866 $4,659 $4,373
Utilities $3,737 $3,666 $3,547
Entertainment $3,036 $2,922 $2,784
Cash Contributions $2,099 $1,875 $1,748
Apparel $1,867 $1,854 $1,804
MARKET OVERVIEWE
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24This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID Y0010432
Demographic SummaryGeography: 5 Miles
Demographic data © 2010 by Experian/Applied Geographic Solutions.
PopulationIn 2016, the population in your selected geography is 17,858 . The population has changed by 12 .07% since 2000 . It is estimated that the population in your area will be 18,626.00 five years from now, which represents a change of 4 .30% from the current year . The current population is 46 .60% male and 53 .40% female . The median age of the population in your area is 42 .62, compare this to the US average which is 37 .68 . The population density in your area is 5,678 .45 people per square mile .
Households There are currently 6,638 households in your selected geography . The number of households has changed by 17 .72% since 2000 . It is estimated that the number of households in your area will be 7,025 five years from now, which represents a change of 5 .83% from the current year . The average household size in your area is 2 .67 persons .
Income In 2016, the median household income for your selected geography is $85,409, compare this to the US average which is currently $54,505 . The median household income for your area has changed by 29 .22% since 2000 . It is estimated that the median household income in your area will be $99,127 five years from now, which represents a change of 16.06% from the current year .
The current year per capita income in your area is $41,635, compare this to the US average, which is $29,962 . The current year average household income in your area is $111,902, compare this to the US average which is $78,425 .
Race and Ethnicity The current year racial makeup of your selected area is as follows: 32 .43% White, 15.25% Black, 0.40% Native American and 36.01% Asian/Pacific Islander . Compare these to US averages which are: 70 .77% White, 12 .80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race .
People of Hispanic origin make up 18 .77% of the current year population in your selected area . Compare this to the US average of 17 .65% .
Housing The median housing value in your area was $482,361 in 2016, compare this to the US average of $187,181 . In 2000, there were 4,356 owner occupied housing units in your area and there were 1,283 renter occupied housing units in your area . The median rent at the time was $785 .
Employment In 2016, there are 3,168 employees in your selected area, this is also known as the daytime population . The 2000 Census revealed that 67 .21% of employees are employed in white-collar occupations in this geography, and 32 .02% are employed in blue-collar occupations . In 2016, unemployment in this area is 3 .38% . In 2000, the average time traveled to work was 39 .00 minutes .
Investment Sales:
exclusively listed
PINOLE GATEWAY SHOPPING CENTERP i n o l e , C A
Kirk Trammell Senior Managing Director InvestmentsPALO ALTOTel: 650-391-1809 Fax: 650-391-1710kirk.trammell@marcusmillichap.com License: CA 01038657
David Cutler Senior AssociatePALO ALTOTel: (650) 391-1753Fax: (650) 391-1710David.Cutler@marcusmillichap.com License: CA 01514751
Joshua JohnsonSenior AssociatePALO ALTOTel: (650) 391-1784Fax: (650) 391-1710Joshua.Johnson@marcusmillichap.com License: CA 01930127
Vince SchwabSenior Managing Director InvestmentsSAN FRANCISCOTel: 415-625-2171 Fax: 415-963-3013vince.shwab@marcusmillichap.com License: CA 00840133
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