investment airport commerce ......regional demographic profile the city of redding is the county...

www.ncpcre.com

Offered By:Offered By:

NORTHSTATE COMMERCIAL PARTNERSNORTHSTATE COMMERCIAL PARTNERS

Ken MillerKen Miller

| [email protected]| [email protected]

| (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




| (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.

[email protected] Redding, CA 96001

CA Lic. #: 00818540 www.ncpcre.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



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



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






| (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.



PARCELPARCEL

MAPMAP



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



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)



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



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

investment airport commerce ......regional demographic profile the city of redding is the county...

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