the railyards development - loopnet · 001-0020-013 1.40 ac. building zoning c-2-sp, general...
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851 S A C R A M E N T O , C A
O F F E R I N G M E M O R A N D U M
THE RAILYARDS DEVELOPMENT
TOWNSHIP 9
01EXECUTIVE SUMMARY
02AREA + MARKET
OVERVIEW
03COMPARABLE
SALES
Investment contacts
STUART WRIGHT+1 916 446 [email protected]. 01451087
Local Market contact
DAVE PLANTING+1 916 446 [email protected]. 01274102
EXECUTIVE SUMMARY
PROPERTY DESCRIPTION
CBRE, as exclusive advisor, is pleased to offer for sale a well-located office showroom with warehouse property in the River District. The 22,320 square foot property was built in 1946 and was originally built for Sears as an appliance distribution property. Approximately half of the property is conditioned space. The other half of the building is a warehouse building. The property is located on two parcels totaling approximately 1.6 acres. The parking lot is paved and fenced.
The layout of the building lends itself to a single user or two tenants. The property has great visibility and frontage along Richards Boulevard – the main thoroughfare in the River District.
The Property is currently occupied by one tenant. That tenant will be vacating the property at close of escrow.
851 Richards is an ideal building for a business seeking visibility with a large secure parking lot/yard with 50 parking spots.
PROPERTY SUMMARY
Land Area Offered +/-1.60 Acres
Year Built 1946
Zoning C-2-SP
Parking 50 Stalls
TRADE AREA STATISTICS 1MILE 3 MILE 5 MILE
Population 7,912 149,544 347,381
Average Household Income $48,753 $69,417 $73,654
LISTING TERMS
Price $2,232,000
Square Feet +/-22,320
Occupancy Owner will vacate upon sale of the property.
PARCEL INFORMATION
Acres Use APN
0.20 Additional Land 001-0020-011
1.40 Building 001-0020-013
INVESTMENT HIGHLIGHTS
Excellent visibility along the main corridor in the River District
Located in up and coming area – the River District that is just minutes from Downtown Sacramento
Secure fenced lot with 50 parking spaces
Ideal for a single user or can be easily demised for two tenants
Nearly half the building is conditioned space
Located in a HUB Zone – an SBA empowerment contracting program designed to encourage economic development by establishing preferences for federal contracting.
THE RAILYARDS DEVELOPMENT
TOWNSHIP 9
AREA + MARKET OVERVIEW
AMERICAN RIVER
RICHARDS BLVD
I-5
DOWNTOWN
SACRAMENTO
RIV
ER
RIVER DISTRICT
N
A m e r i c a n R i v e r
Sa c r am
e nt o
Ri v e r
MatsuiWaterfront
Park
Sacramento River Water Treatment Plant
RailyardsHIstoric Shops
SacramentoIntermodal Station
Blue DiamondGrowers
SmytheAcademy
CAHighway
PatrolCA
Lottery
Township Nine
The Railyards
T9 Station
StatePublishing
SchetterElectric
GreyhoundCity ofSacramento
STL DowntownFord
GeneralProduce
PowerhouseScienceCenter
TiscorniaPark
DiscoveryPark
American RiverParkway
Two Rivers Trail
Richards Blvd.
Bannon St.
Ber
cut D
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Vine St.
N. 12t
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N.
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Jiboomm St.
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MULTI-FAMILY
RESIDENTIAL MIXED USE
COMMERCIAL
OFFICE BUILDING
INDUSTRIAL
This map illustrates current and future configurations as approved in the River District Specific Plan.
LAND USE N
0 150’ 300’ 600
The River [email protected] | 916 321-5599 | www.RiverDistrict.net
THE RIVER DISTRICT
RIVER DISTRICT
The Property is located in the River District and will benefit from the River District Specific Plan which includes a mixed-use community connected to the surrounding areas of Downtown Sacramento and the Railyards by a network of local streets, light rail, bicycle and pedestrian pathways. The River District is a compelling choice for new business opportunities because of its close proximity to Sacramento’s central city and its accessibility to transit and the intermodal transit station making it one of the region’s most accessible sites, with light rail or bus service within a short walk from any point in the District. The District is home to a variety of business interests including wholesale, transportation, manufacturing, entertainment and services. With these assets, it ranks as one of the City of Sacramento’s best performing economic engines, generating almost $2 million in annual sales tax revenue. Within the River District is the 62.5-acre Township 9 development. Completed projects within the development are a light-rail station and an apartment project (Cannery Place Apartments). Township 9 is approved for 2,500 housing units, 800,000 square feet of office space, and 100,000 square feet of urban retail space. The next phase of the project will be 72 detached townhouses and two apartment complexes.
Adjacent to the River District is the Railyards which is one of the largest infill developments in the country. The 244-acre land will include a mixed-use urban community. Anchoring the Railyards will be Kaiser Permanente and a proposed Major League Soccer Stadium. Kaiser has plans to construct a state-of-the-art, approximately 1.2 million square foot medical center campus. The proposed development of the Major League Soccer Stadium will accommodate approximately 20,000 sport or concert attendees. Also within the development will be The Central Shops that will consist of eight historic buildings from the original Central Pacific Railroad Yard that were constructed between 1868 and 1917. These buildings will feature eateries, entertainment, art galleries, retail shops, and an expansion to the State Railroad.
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DEVELOPMENTS - RIVER DISTRICT / RAILYARDS
1 Sutter Health Adult Health Center
45,000 square foot outpatient treatment center for seniors
2 Mixed-use project Six story, 406,382 square foot building with 277 residential units and two ground-floor retail spaces
3 Twin RiversDemolishing a 215 unit public housing development and replacing with 468 residential units
4 Victory ParkResidential project with 72 detached townhouses and two apartment complexes
5 Powerhouse Science Center
50,000 square foot educational science center
6 Sacramento County Courthouse
18-story building with 53 courtrooms, plus parking
7 Luxury Motorcars
Converting a 19,980 square foot warehouse into an events center and high-end dealership selling Ferraris, Audis and Porsches.
8 Soccer Stadium
Primarily intended for a Major League Soccer team but could also be used for concerts. The stadium will accommodate approximately 25,000 people.
9 Kaiser Permanente Medical Center
1.2 million square foot medical campus.
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CITY OF SACRAMENTO
The City of Sacramento, capital of California and the seventh largest city in the state, is home to nearly 500,000 people. While only a two-hour drive to popular leisure destinations like San Francisco, Napa Valley and Lake Tahoe, Sacramento itself is an increasingly desirable destination for food, entertainment, night life and outdoor recreation. As the cultural and economic core of the Sacramento metropolitan area, Sacramento is in the middle of a period of significant economic growth. In addition to a declining unemployment rate, improving job numbers, strong government employment base, abundant and well-educated labor pool, and affordable cost of living, the $557 million Golden 1 Center entertainment and sports complex opened in Downtown Sacramento in 2016 and there are no less than 25 developments in Downtown and Midtown Sacramento under construction or in the planning stages.
TOP EMPLOYERS - PRIVATE1 University of California, Davis 12,639 2 Sutter Health 11,242 3 UC Davis Health System 9,905 4 Kaiser Permanente 9,247 5 Intel 6,000 6 Raleys, Inc 5,507 7 Dignity Health 5,212 8 California State University, Sacrament 2,999 9 Apple, Inc 2,990 10 Squaw Valley Resort 2,500 Source: Moody's Analytics
TOP EMPLOYERS - PUBLICState 115,362 Local 102,882 Federal 13,732
SACRAMENTO REGIONHome to the California state capitol and rich with history and a sense of community, the Sacramento Region is also known for its central location. Located in the north-central portion of the state, this geographic location provides convenient access through major highways and freeways to destinations like the Pacific Coast, Sierra Nevada Mountains, Yosemite National Park, Napa Valley and Lake Tahoe/Reno. The Sacramento Metropolitan Area (MSA) includes seven counties and an estimated population of over 2.2 million residents. Its metropolitan area is the fourth largest in California and the 25th largest in the United States.
The Sacramento Region boasts a diversified economy with traditional and innovative economic activity that provides stability and growth to the market. The region is quickly developing into a world-class technology community, with specific competitive advantages in renewable energy, biotechnology, and agricultural and food sciences.
CALIFORNIA’S POLICY HQHome base for federal and state agencies and departments, as well as executive and legislative arms of state government.
AFFORDABILITYMost cost-effective of California’s major metro areas, from business costs to the costs of living.
TALENTED WORKFORCEA deep labor pool that spans many industries and allows employers to draw from both UC Davis and Sacramento State.
STRONG EDUCATIONUC Davis/Sacramento State/Community Colleges combined, provide over 150,000 students with a diverse and “world-class” education.
OPTIMAL LOCATION FOR LOGISTICSCentral location within the western U.S. with a strong transportation system: air, roadway, rail, and waterway.
SACRAMENTO REGION’S COMPETITIVE ADVANTAGES
MARKET OVERVIEW
Across the country, in leading-edge cities, new companies are moving to old factories and warehouse buildings that are close to downtown. The younger generation of engineers and technical workers want to not only live, but work in or near the center city. These industrial districts have several things in common 1) most are within a 15-minute bicycle ride of popular inner city neighborhoods; 2) they have a supply of warehouses and factories scaled to their needs, and 3) there is plenty of parking. With the construction of the $558 million Sacramento Entertainment and Sports Complex (ESC) investment and leasing activity has increased in the surrounding areas. There are ten developments that are underway or expected to break ground in the River District and the Railyards.
THE RAILYARDS DEVELOPMENT
TOWNSHIP 9
The River District is situated between the Downtown skyscrapers and the banks of the cool, clean waters of the American and Sacramento rivers.
CITY OF SACRAMENTO
SUBMARKET NET RENTABLE AREA
TOTAL VACANCY %
TOTAL AVAILABILITY %
Q4 NET ABSORPTION
YTD NET ABSORPTION
AVERAGE ASKING RATE $
Northgate/Natomas 15,670,881 4.0 9.6 (152,592) (252,756) 0.54
Richards 4,689,551 1.3 3.5 - 44,506 0.43
Downtown/Midtown/East Sacramento 5,351,318 2.7 4.1 (2,500) (2,500) 0.96
West Sacramento 21,282,147 4.9 9.9 1,169,191 1,918,479 0.45
South Sacramento 6,569,249 14.6 29.5 7,170 81,478 0.28
Elk Grove/Laguna/Galt 6,673,595 3.2 6.1 168,470 189,248 0.61
Power Inn Area 27,843,455 3.5 9.0 81,809 154,183 0.65
Northeast Sacramento 7,062,135 4.6 9.1 34,240 93,256 0.77
Rancho Cordova 17,950,435 4.8 7.6 12,331 28,968 0.67
Roseville/Rocklin 15,980,304 2.8 5.1 25,323 345,149 0.85
I-80/Roseville Rd 10,204,067 1.1 4.0 (33,201) (17,629) 0.50
Lincoln 3,758,337 8.8 9.3 121,216 121,216 0.37
Woodland/Davis 17,601,730 3.4 7.3 318,800 810,552 0.36
Folsom/El Dorado Hills 4,864,001 4.8 8.7 (84,016) (5,600) 0.84
McClellan Park 6,894,395 10.6 13.3 (54,608) 20,392 0.31
Auburn/Newcastle 3,173,924 1.7 2.2 1,000 (3,470) 0.94
Market Total 175,569,524 4.3 8.6 1,612,633 3,525,472 0.54
Source: CBRE Research, Q1 2018.
GENERAL PROPERTY INFORMATION
Address 851 Richards Boulevard, Sacramento, CACounty SacramentoParcel numbers and acreage
001-0020-011 0.20 Ac. Additional Land001-0020-013 1.40 Ac. Building
Zoning C-2-SP, General CommercialYear Built 1946Square Feet +/-22,320Construction type Cinder Block
Interior Walls Sheet rockZoning C-2-SPFoundation ConcreteRoof Built-upHVAC 2 Ten-Ton UnitsParking stalls 50Fire Entire building has sprinklersPower 400 Amp; 3 Phase
I-5
TO SACRAMENTO AIRPORT
RICHARDS BLVD
DOWNTOWN N. 7TH ST
SACRAMENTO THEATRICAL LIGHTING
LUXURYMOTORS
CALIFORNIAHIGHWAY PATROL
CANNERY PLACEAPARTMENTS
SACRAMENTO POLICE DEPARTMENT
YELLOW CAB
TOWNSHIP 9DEVELOPMENT
CALIFORNIA STATELOTTERY HQ
FEDEX
SAFELITE AUTOGLASS
The River District has some of the best of what Sacramento has to offer: urban living with direct access to natural settings and healthy lifestyle activities along the Ameri-can and Sacramento Rivers; proximity to Downtown, and the convenience of Light Rail and regional public transportation offering easy access to the Sacramento region and San Francisco via the Capitol Corridor.
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BUILDING INFORMATION
LOCATION MAPPROJECT
LEGEND
1FLOOR PLAN - OCCUPANT LOAD / EXITING 3/16" = 1'-0"
SHEET INDEX
FLOOR PLAN
PARCEL MAP
COMPARABLE SALES
ADDRESS DATE SOLD SALE TYPE BUILT PRICE SIZE PRICE/SF COMMENTS
2286 Del Monte Street W. Sacramento, CA Jan-18 Owner/User 1966 $1,375,000 12,000 $114.58
This will be an R&D type use for the buyer. The building does not have the visibilty of the subject property.
125 Main Avenue Sacramento, CA Aug-17 Owner/User 1985 $2,300,000 22,033 $104.39
The property does not have the visibility of the subject property. Most of location will be occupied by buyer, but may lease excess space
175 Opportunity Street Sacramento, CA Nov-17 Unknown 1982 $2,500,000 26,250 $95.24 The property does not have the visibility of the
subject property. Tenant was Iron Mountain
1421 Richards Boulevard Sacramento, CA Sep-17 Owner/User 1981 $2,820,000 29,105 $96.89
Metal building located along Richards Boulevard and is tucked behind another building with limited visibility from the road.
3709 Seaport Boulevard W. Sacramento, CA Jun-18 Owner/User 1985 $1,690,000 14,400 $117.36 More of a traditional industrial building. Not
as much visibility as the subject property.
855 Stillwater Road W. Sacramento, CA Aug-17 Owner/User 1982 $4,260,000 34,500 $123.48 Property sold to a corporate user - Valley Power
Systems.
AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times, different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”) and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arm’s length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).
CONFIDENTIALITY AGREEMENTYour receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.
DISCLAIMERThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property”s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.
The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner. PMStudio_August2018
Investment contacts
STUART WRIGHT+1 916 446 [email protected]. 01451087
Local Market contact
DAVE PLANTING+1 916 446 [email protected]. 01274102
O F F E R I N G M E M O R A N D U M