investment opportunity - loopnet · nor do they purport to constitute a legal analysis of the...

Anthony T. Scigliano ▪ Senior Vice President ▪ 661 616 3580 ▪ [email protected] ▪ CA RE #0090495611601 Bolthouse Drive Suite 110 ▪ Bakersfield, CA 93311 ▪ 661 862 5454 main ▪ 661 862 5444 fax

The information contained herein may have been obtained from sources other than ASU Commercial. We have not verified such information and make no guarantees, warranties or representations about such information. It is your responsibility to independently confirm its accuracy and completeness prior to purchasing/leasing the property.

The Shops at Coffee Road Shopping Center

INVESTMENTOPPORTUNITY

Shops at Coffee RoadBakersfield, CA

100% LEASED


Disclosures & Confidentiality

FOR SALEThe Shops at Coffee Road Shopping Center ▪ Bakersfield, Ca

The enclosed Offering Memorandum Package has been prepared solely for informational purposes to assist a Prospective Purchaser in determining whether it wishes to proceed with an in-depth investigation of the property described herein. It is in-tended solely for your limited use and benefit in determining whether you desire to express any further interest in the purchase of the Property. Prospective Purchasers are expected to review independently all documents related to the Property as to the accuracy and completeness of the information contained herein. All financial projections are provided for general reference purposes only. These projections have been based upon various assumptions relating to the general economy, competition and other factors beyond the reasonable control of NewmarkGrubb ASU & Associates, and, therefore, are subject to material variation.

ASU Commercial, and its respective officers, employees or agent representatives do not make any representation or war-ranty, expressed or implied, as to the accuracy or completeness of this Offering Memorandum Package or any of its contents. In this Offering Memorandum Package, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete, nor, necessarily, accurate descriptions of the full agreements involved, nor do they purport to constitute a legal analysis of the provisions of the documents. Interested parties are expected to review independently such documents.

By receipt of this Offering Memorandum Package, you agree that its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose directly or indirectly this Offering Memorandum Package or any of its contents to any other entity (except affiliates or Prospective Purchasers) without the prior written authorization of the Owner and ASU Commercial. You also agree that you will not use this Offering Memorandum Package or any of its contents in any manner detrimental to the interest of the Owner and ASU Commercial. You also agree not to contact any of the tenants named in the enclosed lease summaries or rent rolls. Photocopying or other mass duplication of this Offering Memorandum Package without the permission of ASU Commercial is prohibited.

The information contained in this Offering Memorandum Package was obtained from third parties and/or directly from the Owner, and it has not been independently verified by ASU Commercial or its agents. Prospective Purchasers should have the experts of their choice inspect the Property and verify all information. Real estate brokers are not qualified to act as or select experts with respect to legal, tax, environment, building construction, soils-drainage, or other such matters. Additional informa-tion and an opportunity to inspect the property will be made available to any interested and qualified Prospective Purchasers.

If prior to or upon your review of this Offering Memorandum Package you no longer have any further interest or you do not wish to pursue negotiations leading to this acquisition, please return this Offering Memorandum Package in its original form to this submitting agent at:

ASU Commercial ▪ 11601 Bolthouse Drive, Suite 110 ▪ Bakersfield, California 93311

The Property described in this Offering Memorandum Package may be subject to prior sale, modification and/or withdrawal from the market by the Owner at any time without prior notice. Owner and ASU Commercial each expressly reserves the right, at their sole discretion, to reject any and all expressions of interest or offers regarding the Property and or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity reviewing this Offering Memorandum or making an offer to purchase the property unless and until a written agreement for the purchase of the Property Owner’s obligations thereunder have been satisfied or waived. The terms and conditions stated in this “Confidentiality and Disclaimer” page will relate to all of the sections contained in this Offering Memorandum Package as if stated independently therein.


Investment Summary


CONFIDENTIAL OFFERINGASU Commercial is pleased to announce its appointment as the exclusive marketing in the sale of the Shops at Coffee Road Shopping Center in Bakersfield, CA.

INVESTMENT HIGHLIGHTS▪ Strategically located maximizing Coffee Road frontage for value added rental rates. ▪ Easily accessible for established neighborhoods and a solid mix of high quality multi-family apartments. OFFERING TERMS▪ Offering Price: $5,500,000▪ Capitalization Rate: 7.41%

2019 ACTUAL OPERATIONS▪ Net Operating Income: $407,775

TRANSACTION TIMETABLE & PROCEDURES▪ Seller will consider all offers with consideration being placed on price, Buyer’s qualification, timing of offer and proposed closing date.▪ Seller reserves the right to sell the property at any time without prior notice.▪ The property will be sold on an “as is” basis.

PROPERTY ADDRESSES▪ 3603 Coffee Road-APN 451-010-62 / Approximetly 38,768 SF Land▪ 3615 Coffee Road-APN 451-010-55 / Approximetly 47,916 SF Land


Property Description


The Shops At Coffee Road Shopping Center Is An Excellent Investment Opportunity For Many Reasons:

▪ LOCATION: The shopping center is strategically located on Coffee Road, NW Bakersfield’s main north/south arterial, and offers direct ingress and egress access along the Coffee road corridor.

▪ EXCELLENT MIX OF TENANTS: The Shops at Coffee Shopping Center features thre separate buildings of which two are occupied with retail/service oriented tenants and the third building is a 100% vacant two story office building that can also be utilized as retail. The individual buildings provide for a solid mix of tenants. ▪ STABLE TRADE AREA: The Shops at Coffee Shopping Center is located on Coffee Road, the main N/S arterial (the “spine”) of Bakersfield. Riverlakes Ranch is a newer master-planned community developed over the past 15 years. The Links at Riverlakes, an 18-hole golf course, features upscale-gated communities within the boundaries of the golf course. Lennar Homes, Centex Homes, D.R. Horton and McMillan Homes are a few of the national builders contributing to the growth of Riverlakes Ranch. In addition to single-family residences, several well-established, higher-end multi-family developments mesh well to create the perfect demographics for a strong trade area.

OFFERING PRICE

AGE Construction completed in 2007

OFFERINGNewmark Grubb/ASU Partners is pleased to offer for sale fee simple interest in all or part of the property.

LOCATIONNWC of Coffee Road and Kapalua Drive(within Riverlakes Ranch) in Bakersfield, California

OFFERING SIZEApproximately 18,264 square feet of GLA on approximately2 acres of land.

ZONINGGeneral Commercial (C-2) in the City of Bakersfield

ACCESSExcellent direct access from fully signalized ingress/egress points with two additional left turn ingress points along Coffee Road.

ARCHITECTUREIntelligently designed with two separate buildings fronting Coffee Road offering visability from Coffee Road. The retail buildings maximize street frontage for added value rental rates. The buildings are newly constructed without elbows or irregular space featuring colors that give the center a fresh and inviting appearance.

PARKING (All common areas)Total parking stalls, 6.9/1,000 GLA shared in common with all 3 parcels within the shopping center.

CONSTRUCTIONThe buildings are set on a concrete perimeter foundation with a concrete slab floor. Exterior walls are modern-neutral colors with large sign fascia allowing for maximum tenant exposure.

COMMENTSThe offering consists of a combination of two multi-tenant buildings totaling 18,264 square feet. Each building is loated on it’s own separeate parcel with reciprocal park-ing accross all 3 parcels.

Property Characteristics

INCOME & EXPENSE PROFORMARent $429,264CAM Reimbursements $117,938Total Gross Scheduled Income $547,202Less Vacancy (5%) ($21,500)

Reimbursed Expenses ($117,938)

Net Operating Income $407,775


Actual NOI


MEANY AVENUE

DOWNEY AVENUE

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SALES PRICENet Operating Income $407,776Sales Price $5,500,000Capitalization Rate 7.41%Price Per Square Foot $301.00

SITE

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Projected Operating Cash Flow


OPERATING EXPENSESTaxes $36,935Insurance $5,750Water & Sewer $2,378Trash $13,697

Security $1,794

Sweeping $831

Landscaping $7,432

Pressure Washing $2,950

Electric $5,286

Management $29,118

Pest Control $567

Associate Fee $2,355

Reserves & Maintenance $5,714

HVAC Service/Repair $3,131

TOTAL OPERATING EXPENSES $117,938

BASE RENTAL REVENUEReimbursed Expense $117,938Effective Gross Revenue


Rent Roll


TENANT SUITE SQ.FT TERM MO.RENT ANN.RENT PSF RENT EXP. NOTES

Fuego’s Mex Grill 600 2,850 5 Years $5,233 $62,796 $1.84 05/30/21 Fixed Annual 2% Increase

Stellar Construction 400 1,500 5 Years $2,250 $27,000 $1.50 03/2022 Flat

Subway 300 1,400 5 Years $3,290 $39,480 $2.35 04/30/24 CPI 3% Min - 5% Max

Mariner Finance 200 1,600 5 Years $2,920 $35,520 $1.85 07/2024 Fixed Annual 2% Increase

Domino’s Pizza 100 1,350 10 Years $2,683 $32,196 $1.94 04/2023 Fixed Annual 2% Increase

RETAIL BUILDING - 3603 COFFEE ROAD

TENANT SUITE SQ.FT TERM MO.RENT ANN.RENT PSF RENT EXP. NOTES

Sushiko 100 2,120 5 Years $4,410 $52,920 $2.08 07/2022 Fixed Annual 2% Increase

Max Muscle 200 1,322 5 Years $2,710 $35,520 $2.05 10/31/21 Flat

Pho 88 300 1,500 5 Years $3,290 $38,700 $2.15 05/31/21 Fixed Annual 2% Increase

Saltwater Poke 400 1,500 5 Years $2,700 $40,000 $1.80 08/31/23 Fixed Annual 3% Increase

Inspire Salon 500 3,123 5 Years $6,246 $74,952 $2.00 05/2021 Flat

TOTAL $35,772 $429,264

RETAIL BUILDING - 3615 COFFEE ROAD

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FUEGO’SMEX GRILL

PHO 88

DOMINO’S

SUBWAY

MAX MUSCLE

SUSHIKO

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STELLERCONSTRUCTION

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KAPALUA LANE


Site Plan


SALTWATERPOKE

INSPIRESALON

MARINERFINANCE

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CA

LLO

WAY

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ROSEDALE HWY

CLAY

PATR

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FAIR

WAY

GRANITE FALLS DRIVE

HAGEMAN ROAD

RIV

ERLAKES DRIVE

DOWNEY AVE

SITE


Location & Other Businesses In The Area


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City & County Overview


KERN COUNTY OVERVIEWEstablished in 1866, Kern County is referred to as California’s Golden Empire and with little wonder. It was first settled because of the gold found throughout the valley and later for the rich “black gold” that continues to be a mainstay for local economy - Kern County being the leading oil producer in the continental U.S. Kern County also has a rich heritage as a copi-ous farming region. The Central Valley dominates agricultural production in California with Kern County ranking 4th in the state. Its exports are many, making it the breadbasket for the nation as well as the world. The superior quality of life within Kern County is marked by some of the lowest housing prices in California. With a hospitable community, lots to do and a low cost of living, this is the place to be!

BAKERSFIELD OVERVIEWFor centuries the Yokuts Indians thrived in the San Joaquin Valley. With a plethora of lakes and rivers and plenty of hunting, it was an ideal settlement. So when Padre Francisco Garces stumbled upon this hidden treasure in 1776, he immediately predicted it would blossom into a commercial success. But another 90 years lapsed before his vision started taking shape, primarily in the form of one couple, Colonel Thomas Baker and his wife, Ellen.

Through their dedication and hospitality, the stage was set for incredible growth and prosperity. Initially, the area was used to feed the livestock of families trekking northward through the El Tejon Pass seeking home sites. The Colonel would invite the weary travelers to rest overnight. The growing township was soon labeled with the moniker Baker’s Field. Thus, in 1898, in honor of two of its earliest settlers, “Bakersfield” was incorporated.

Early in its history Bakersfield established itself as a caring community with strong leadership manifested in its proactive gov-ernment. It came as no surprise then when it was designated as the county seat in 1864. Colonel Baker formally laid out the town in 1869, and within two years the city had a telegraph office, two stores, a newspaper, two boarding houses, one doctor, a wagon shop, a harness shop, one attorney, a saloon, and fifty school pupils. Bakersfield has certainly prospered since then. To the 347,483 current residents, this hospitable city has continued to engender a hometown feel while providing many of the amenities found in larger cities.

Bakersfield, the 9th largest city in the state of California, is located at the southern end of California’s Central Valley. Strategi-cally located approximately 110 miles north of Los Angeles.


City & County Overview


CENTRAL VALLEY CALIFORNIA

COMMUNITYThere is also a goldmine of recreational and tourism activities. With its three climate zones -- valley, mountains, and high desert -- Kern County has something for everyone. Whether kayaking down the rapids of the Kern River, strolling among wild flowers, visiting the giant sequoia trees, or rock climbing in the desert, Kern County is a nature-lovers paradise. Furthermore, among the local hot spots is several country clubs, numerous premium golf courses, museums, art galleries, and a variety of musical, sporting, and cultural events at Rabobank Arena. In an hour or less, you could be enjoying the best fishing and camping in the state at Sequoia National Park, or sunbathing on one of California’s world-famous beaches.

A September 2012, LA Times article, writes:

“This mid-size city… has reclaimed an old title: BOOMTOWN. Bakersfield has been adding population and jobs at a brisk pace and is a few thousand jobs from matching its peak employment level of five years ago. A price-fueled energy bonanza, low corporate operating costs and an advantageous location ate contributing to the area’s good fortune.”

COMMERCEMore than just agriculture and oil, this community has a diverse industrial market. From high-tech computer and manufactur-ing companies to state-of-the-art telecommunication giants, a variety of organizations have been drawn to the valley, including the nation’s top aviation research facility. Its centralized location at the southern end of the San Joaquin Valley makes Kern County easily accessible and offers convenient passage not only through the state but also across the US. This has been instrumental in transforming Kern County into a hub for some of the world’s largest companies.

With such a strong presence of high profile companies and research facilities, many upper level professionals have been drawn to the area. The majority of these have been families, as Bakersfield has the reputation for being a family- oriented town with affordable housing and a low cost of living. In the Metro Bakersfield area, commute time is usually 20 minutes or less. The majority of residents work within the county, so there is only a handful of in and out commuters. Some prefer to live in Metro Bakersfield and drive out to jobs in neighboring communities.

investment opportunity - loopnet · nor do they purport to constitute a legal analysis of the...

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