FOR SALE Multi-Tenant Net Leased Investment 15611 Hesperian Boulevard San Lorenzo, CA - Northgate ...
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FOR SALE Chris Santana | Vice President
(925) 203-1106
Xavier Santana| President
(925) 226-2455
chris.santana@ngcip.com xavier@ngcip.com
License # 01868378 License # 01317296
Multi-Tenant Net Leased Investment
Bill Johnson| Investments Partner
15611 Hesperian Boulevard (209) 546-6051
bill.johnson@ngcip.com
San Lorenzo, CA License # 01992157
www.ngcip.com | Broker # 01910787
T (209) 477-4400 | F (209) 476-7344
Sacramento,
Reno, California
Nevada
Confidentiality & Disclosure Agreement
Northgate Commercial Real Estate (“Broker”) has been authorized by the Seller of the Property (“Seller”) to prepare
and distribute the enclosed information for the purpose of soliciting offers to purchase from interested parties.
Additional information in the possession of the Seller including but not limited to financial, tenant, title, and building can
be made available upon request following the mutual execution of letter of intent (LOI) and/or Purchase and Sale
Agreement (PSA). All prospective Buyers may at the request of Seller, be required to submit financials and references to
demonstrate Purchasers ability to close on the purchase of the property. The eventual Purchaser shall be selected on
the Sellers assessment of the price, terms, and the ability to close the transaction and such conditions as set for in the
contract. Seller, reserves the right to simultaneously negotiate with multiple Purchasers at Seller’s sole discretion.
Prospective purchasers and their agents may not enter the property or disturb the tenant without Brokers consent. All
property tours shall be conducted by appointment only and must be coordinated by Broker. All the information
contained in this offering memorandum has been obtained by sources deemed reliable but are not guaranteed.
Prospective Purchasers shall bear the responsibility of conducting their own investigations on the property and review of
the due diligence materials as provided by the Seller.
2 | PG 2
PROPERTY SUMMARY
727 South Broadway
Table of Contents
4 Investment Summary
Executive & Investment Summary
Leasing Abstract Exclusively Listed By:
Financial Structure Chris Santana | Vice President
9 Rent Roll
(925) 203-1106
chris.santana@ngcip.com
License # 01868378
Marketing Information Xavier Santana | President
(925) 226-2455
13 Market Profile
xavier@ngcip.com
License # 01317296
Market View
Property Overview Bill Johnson| Investments Partner
(209) 546-6051
bill.johnson@ngcip.com
15 Property Summary License # 01992157
20 Tenant Profile
© 2017 Northgate Commercial Real Estate. We obtained the information above from sources
Kelly-Moore Paints we believe to be reliable. However, we have not verified its accuracy and make guarantee,
warranty or representation about it. It is submitted subject to the possibility of errors,
omissions, change of price, rental or other conditions, prior sale, lease or financing, or
7-Eleven withdrawal without notice. We include projections, opinions, assumptions or estimates for
example only, and they may not represent current or future performance of the property. You
and your tax an legal advisors should conduct your own investigation of the property and
Demographics transaction.
| PG 3
INVESTMENT SUMMARY
PROPERTY
EXECUTIVE SUMMARY SUMMARY
& INVESTMENT MULTI-TENANT NET LEASED INVESTMENT
15611 Hesperian
3600 Boulevard
Sisk Road · Modesto, California Austin, Texas
San Lorenzo, California
Investment Summary:
MARKET VALUE: $5,346,000
PRICE/SQUARE FOOT: $622
CAP RATE: 5.0%
NOI: $267,300
OCCUPANCY: 100%
GLA: ±8,600 SQ FT
LOT SIZE: ±0.74 Acre
Asset Highlights:
• New ten (10) year net lease with Kelly-Moore Paint Company
• 7-Eleven corporate lease expiring in May 2023
• Great access to I-880 with pylon visibility
• Located at highly signalized intersection exceeding 39,000 vehicles daily
• Area Co-Tenants include In-N-Out Burger, Starbucks, Party City, Crunch
Fitness, 76, O’Reilly Auto Parts, Big 5 Sporting Goods, Walmart, Hilton
Garden Inn, Taco Bell + more
5 | PG 5
LEASING ABSTRACT MULTI-TENANT NET LEASED INVESTMENT
15611 Hesperian Boulevard San Lorenzo, California
Kelly-Moore Paints 7-Eleven
LEASE COMMENCEMENT: Close of Escrow LEASE COMMENCEMENT: May 2013
TERMS: 10 years TERMS: 5 years remaining
OPTIONS: 4 Options – 5 years each OPTIONS: 4 Options – 5 years each
RENT COMMENCEMENT: Close of Escrow RENT COMMENCEMENT: May 2013
RENTAL INCREASES: 8% Every 5 years (base & option terms) RENTAL INCREASES: 8% Every 5 years (base & option terms)
LEASE EXPIRATION: 10 Years LEASE EXPIRATION: May 2023
DEPOSIT: None DEPOSIT: None
LEASE TYPE: NNN LEASE TYPE: NNN
Maintenance/replacement of the roof, Maintenance/replacement of the roof,
structure, parking lot, exterior walls, utilities, structure, parking lot, exterior walls, utilities,
LANDLORD RESPONSIBILITES: HVAC (replacement only). Amortization of LANDLORD RESPONSIBILITES: HVAC (replacement only). Amortization of
capital expenditures allowed subject to capital expenditures allowed subject to
Lease Terms Lease Terms
Taxes, Insurance, and maintenance of the Taxes, Insurance, and maintenance of the
grounds, including the landscaping, glass grounds, including the landscaping, glass
TENANT RESPONSIBILITIES: TENANT RESPONSIBILITIES:
replacement, and HVAC repairs/service replacement, and HVAC repairs/service
contracts contracts
| PG 6
FINANCIAL STRUCTURE MULTI-TENANT NET LEASED INVESTMENT
15611 Hesperian Boulevard San Lorenzo, California
2018
Estimated Operating Expenses Owner's 2017 Proforma Amount
Financial Structure
Property Taxes $22,870 $55,104
Rent
Proforma Amou
Scheduled Gross Income Actual-In- Place nt Insurance $4,082 $1,224
Base Rent $268,800 $274,200 CAM’s $8,715 $5,610
Expense Recoveries $39,287 $71,545 Property Management $5,103 $1,500
Other Income $0 $0
Total $40,771 $73,058
Lease-Up Available Space $0 $0
Subtotal $308,087 $345,745 Annual Per Square Foot $4.74 $8.50
Monthly Per Square Foot $0.40 $0.71
Less Vacancy Allowance $0 $0
Assumptions
Effective Gross Income $308,087 $345,745 Proforma property taxes @: 1.025%
7-Eleven rent increase in Aug 2018
7-Eleven CAM CAP 3% annually (no cap on taxes)
Less Expenses $40,771 $73,058 7-Eleven does not pay management fees
7-Eleven pays reimbursements and not estimates
Net Operating Income $267,317 $272,687
Proforma NOI based on 7-Eleven increase Aug 2018
| PG 7
RENT ROLL MULTI-TENANT NET LEASED INVESTMENT
15611 Hesperian Boulevard San Lorenzo, California
LEASE
% OF MONTHLY MONTHLY PROFORMA PROFORMA LEASE START
Tenant SQ FT: EXPIRATION
BUILDING: RENT (PSF) RENT RENT (PSF) RENT (PSF) DATE
DATE
Kelly-Moore 6,100 70.9% $2.75 $16,775 $2.75 $33.00 COE 10 YEARS
7-Eleven 2,500 29.1% $2.25 $5,625 $2.43 $29.16 AUG-13 JULY-23
Options
• 4 – 5 year options w/ 8% increases every 5 years
Kelly-Moore
• 8% escalations every 5 years
• 4 Options – 5 years each
7-Eleven
• 8% Every 5 years (base & option terms)
| PG 8
MARKET INFORMATION
PROPERTY
MARKET
15611
SUMMARY
INFORMATION
Hesperian BoulevardCalifornia
MULTI-TENANT NET LEASED INVESTMENT
3600 Sisk Road · Modesto, San Lorenzo, California
San Lorenzo, California
The community of San Lorenzo is located in the East Bay of the
San Francisco Bay in Alameda County and home to an
estimated 25,000 residents. San Lorenzo was one of the nation's
first planned communities, with parcels designated for schools,
churches, parks, and several retail centers.
• Approximately 40,000 businesses and 640,000 employees contribute to the
service and economical growth across Alameda County
• Median household incomes exceed $74,800 in 2017
• An estimated 7,425 households within the city limits and expected to
exceed by 0.9% in 2022
Top Employers:
Organization Product/Service Employees
Kaiser Permanente Hospital >11,000
Merritt Pavilion Lab Medical >5,000
Alameda County Law
Government >3,000
Enforcement
Alta Bates Summit Medical
Medical >2,200
Center
UPS Postal >2,200
10 | PG 10PROPERTY
Market
15611
ViewSUMMARY
–Northern View
Hesperian BoulevardCalifornia
NET LEASED OPPORTUNITY
3600 Sisk Road · Modesto, San Lorenzo, California
| PG 11PROPERTY
Market
15611
ViewSUMMARY
–Eastern View
Hesperian BoulevardCalifornia
NET LEASED OPPORTUNITY
3600 Sisk Road · Modesto, San Lorenzo, California
| PG 12PROPERTY OVERVIEW
PROPERTYSUMMARY
PROPERTY
15611
SUMMARY
Hesperian BoulevardCalifornia
MULTI-TENANT NET LEASED INVESTMENT
3600 Sisk Road · Modesto, San Lorenzo, California
15611 Hesperian Boulevard | San Lorenzo,
Location:
CA
APN: 413-0097-008-03
GLA: ±8,600 SQ FT
Lot Size: ±0.74 Acres
Year Built: 1986
Zoning: ACBD
Traffic Counts: Hesperian Blvd @ Site: ± 39,000 ADT
Lewelling Blvd @ Site: ± 28,000 ADT
Interstate 880 Near Site: ± 211,000 ADT
| PG 14TENANT PROFILE
TENANT PROFILE MULTI-TENANT NET LEASED INVESTMENT
15611 Hesperian Boulevard San Lorenzo, California
About Kelly-Moore Paints
Mission
To provide high quality, innovative products with exceptional
service
at a fair value.
History
In 1946, William H. Kelly and William E. Moore recognized the
unique needs of professional painting contractors for top-quality
paint products and knowledgeable, efficient service at a fair
price. This philosophy has allowed Kelly-Moore to grow from a
single manufacturing facility and store in San Carlos, California,
to one of the largest employee-owned paint companies in the
United States. Its reputation for quality products is unsurpassed in
the industry. The company produces some of the most
technologically advanced paint products and sets the industry
standard for new product development and quality control, and
retains the reputation of "The Painter's Paint Store.”
| PG 16PROPERTY
TENANT
15611
SUMMARY
PROFILE
Hesperian BoulevardCalifornia
MULTI-TENANT NET LEASED INVESTMENT
3600 Sisk Road · Modesto, San Lorenzo, California
About Kelly-Moore Paints
Not Just Your Neighborhood Paint Store
Kelly Moore has approximately 1,300 employees with nearly 150
retail paint stores and 120 Independent Dealers.
Employee Owned – You are working with an owner. In 1998, Mr.
and Mrs. William E. Moore established the Kelly-Moore Paint
Company Employee Stock Ownership Program (ESOP). Creating
this program ensured the Moore Family tradition of providing
only the highest level of service will continue for years to come.
Each employee-owner is committed to offering the best paint
products along with exceptional customer service everyday.
17 | PG 17PROPERTY
TENANT
15611
SUMMARY
PROFILE
Hesperian BoulevardCalifornia
MULTI-TENANT NET LEASED INVESTMENT
3600 Sisk Road · Modesto, San Lorenzo, California
About Kelly-Moore Paints
Manufacturing - Made in America Since 1946
Kelly-Moore has two strategically located, state-of-the-art
manufacturing facilities in key markets: San Carlos, California
and Hurst, Texas (outside Dallas). Our reputation for quality
products is unsurpassed in the industry. Kelly-Moore produces
some of the most technologically advanced paint products and
sets the industry standard for new product development and
quality control.
Our manufacturing facility in San Carlos is also the recipient of
five widely recognized green business awards from the State of
California and San Mateo County for outstanding efforts to
reduce pollution and solid waste and conserve water, energy
and other natural resources.
18 | PG 18TENANT PROFILE MULTI-TENANT NET LEASED INVESTMENT
15611 Hesperian Boulevard San Lorenzo, California
About 7-Eleven
The 7-Eleven brand is known and loved around the world, and
our iconic products are a big part of the American culture.
And although we’ve grown significantly over the years, our
focus stays fixed on making life easier for customers. This simple
idea is the reason we’re the marketplace leader.
Being a great neighbor is all about investing and getting
involved. It’s also about responsibility, which is one of our key
business principals. That’s why we put such a focus on serving
people, improving our products and protecting the planet.
7-Eleven is proud to set the standard for responsible retailing in
the convenience industry.
| PG 19Austin, Texas DEMOGRAPHICS
Demographics MULTI-TENANT NET LEASED INVESTMENT
15611 Hesperian Boulevard Austin, Texas
San Lorenzo, California
1 MI RADIUS 3 MI RADIUS 5 MI RADIUS
POPULATION
2017 Estimated Population 33,124 192,989 386,432
2022 Projected Population 34,730 202,278 406,130
2010 Census Population 30,831 177,159 353,941
Projected Annual Growth 2017 to 2022 1,606 1.0% 9,289 1.0% 19,698 1.0%
Historical Annual Growth 2010 to 2017 2,293 1.1% 15,830 1.3% 32,491 1.3%
HOUSEHOLDS
2017 Estimated Households 10,843 64,338 125,283
2022 Projected Households 11,307 67,191 131,132
2010 Census Households 10,427 60,981 118,496
Projected Annual Growth 2017 to 2022 464 0.9% 2,853 0.9% 5,849 0.9%
Historical Annual Growth 2000 to 2017 300 0.2% 3,649 0.4% 6,558 0.3%
AVERAGE HOUSEHOLD INCOME
Estimated Average Household Income (2017) $96,976 $95,388 $99,657
Projected Average Household Income (2022) $117,629 $114,557 $119,892
Census Average Household Income (2010) $66,557 $67,390 $69,721
Projected Annual Change (2017-2022) $20,652 4.3% $19,169 4.0% $20,235 4.1%
Historical Annual Change (2000-2017) $38,796 3.9% $35,542 3.5% $38,383 3.7%
MEDIAN HOUSEHOLD INCOME
Estimated Median Household Income (2017) $78,490 $77,245 $79,414 $78,490
Projected Median Household Income (2022) $90,502 $89,917 $92,742 $90,502
Census Median Household Income (2010) $58,662 $58,500 $60,363 $58,662
Projected Annual Change (2017-2022) $12,012 3.1% $12,672 3.3% $13,329 3.4%
Historical Annual Change (2000-2017) $27,914 3.2% $25,691 2.9% $26,626 3.0%
21 | PG 21Demographics MULTI-TENANT NET LEASED INVESTMENT
15611 Hesperian Boulevard San Lorenzo, California
1 MI RADIUS 5 MI RADIUS 10 MI RADIUS
RACE AND ETHNICITY
Total Population (2017) 33,124 192,989 386,432
White (2017) 11,641 35.1% 74,954 38.8% 145,165 37.6%
Black or African American (2017) 3,215 9.7% 21,061 10.9% 52,428 13.6%
American Indian or Alaska Native (2017) 204 0.6% 1,552 0.8% 2,889 0.7%
Asian (2017) 10,902 32.9% 51,496 26.7% 92,597 24.0%
Hawaiian or Pacific Islander (2017) 267 0.8% 1,896 1.0% 5,356 1.4%
Other Race (2017) 5,032 15.2% 30,726 15.9% 64,743 16.8%
Two or More Races (2017) 1,862 5.6% 11,303 5.9% 23,254 6.0%
EDUCATIONAL ATTAINMENT (2017)
Adult Population Age 25 Years or Over 23,308 135,407 267,180
Elementary (Grade Level 0 to 8) 2,505 10.7% 13,716 10.1% 27,282 10.2%
Some High School (Grade Level 9 to 11) 1,792 7.7% 10,148 7.5% 19,847 7.4%
High School Graduate 5,870 25.2% 34,171 25.2% 66,875 25.0%
Some College 4,930 21.2% 27,773 20.5% 56,593 21.2%
Associate Degree Only 2,192 9.4% 10,538 7.8% 19,415 7.3%
Bachelor Degree Only 4,423 19.0% 26,926 19.9% 52,736 19.7%
Graduate Degree 1,596 6.8% 12,135 9.0% 24,432 9.1%
Any College (Some College or Higher) 13,141 56.4% 77,371 57.1% 153,176 57.3%
College Degree + (Bachelor Degree or Higher) 6,018 25.8% 39,061 28.8% 77,169 28.9%
HOUSING
Total Housing Units (2016) 11,090 66,181 129,143
Total Housing Units (2010) 10,902 64,421 126,062
Historical Annual Growth (2011-2016) 187 0.2% 1,760 0.4% 3,081 0.3%
Housing Units Occupied (2016) 10,843 97.8% 64,338 97.2% 125,283 97.0%
Housing Units Owner-Occupied 5,962 55.0% 34,005 52.9% 67,637 54.0%
Housing Units Renter-Occupied 4,880 45.0% 30,334 47.1% 57,646 46.0%
Housing Units Vacant (2016) 247 2.3% 1,843 2.9% 3,861 3.1%
Business
Total Businesses 579 7,559 12,988
Total Employees 5,496 70,900 125,886
22 | PG 22Sacramento,
Reno, California
Nevada
Information About Brokerage Services
1. DUTIES AND RESPONSIBILITIES: A BROKER who provides Brokerage Services to one or both The following information shall be considered confidential and shall be the only information
parties shall describe and disclose in writing the BROKER’s duties and responsibilities prior to considered confidential in a transaction:
the party or parties signing a contract to sell, purchase, option, or exchange real estate. 1) that a party or prospective party is willing to pay more or accept less than
BROKERS shall have the following duties and responsibilities which are mandatory and may what is being offered,
not be abrogated or waived by a BROKER, whether working with one party, or working 2) that a party or prospective party is willing to agree to financing terms that are
with both parties: different from those offered,
3) the motivating factors of the party or prospective party purchasing, selling,
optioning or exchanging the property, and
A. Treat all parties to the transaction with honesty and exercise reasonable skill and
care; 4) information specifically designated as confidential by a party unless such
B. Unless specifically waived in writing by a party to the transaction: information is public.
1) receive all written offer and counteroffers;
2) reduce offers or counteroffers to a written form upon request of any party to G. Comply with all requirements of the Oklahoma Real Estate Code and all applicable
statutes and rules;
a transaction; and
H. When working with one party or both parties to a transaction, the duties and
3) present timely all written offers and counteroffers responsibilities set forth in this section shall remain in place for both parties.
C. Inform, in writing, the party for whom the BROKER is providing Brokerage Services when 2. BROKERAGE SERVICES: Services are provided to both parties to the transaction. The
an offer is made that the party will be expected to pay certain closing costs and the Oklahoma BROKER Relationships Law (Title 59, Oklahoma Statutes, Section 858-351 – 858-
approximate amount of the costs; 363) allows a real estate BROKER to provide brokerage services to both parties to the
D. Keep the party for whom the BROKER is providing Brokerage Services transaction. If the prospective BUYER wants to make an offer on the property, the BROKER
must now provide a written notice to both the BUYER and SELLER that the BROKER is now
informed regarding the transaction;
providing brokerage services to both parties to the transaction. The law states that there
E. Timely account for all money and property received by the BROKER; are mandatory duties and responsibilities that must be performed by the BROKER for each
F. Keep confidential information received from a party or prospective party.
party confidential. The confidential information shall not be disclosed by a
BROKER without the consent of the party disclosing the information 3. CONFIRMATION OF DISCLOSURE OF DUTIES AND RESPONSIBILITIES: The duties and
unless consent to the disclosure is granted in writing by the party or responsibilities disclosed by the BROKER shall be confirmed in writing by each party in a
prospective party disclosing the information, the disclosure is required by separate provision, incorporated in or attached to the contract to purchase, option or
law, or the information is made public or becomes public as the result of exchange real estate.
actions from a source other than the BROKER. The following information
shall be considered confidential and shall be the only information
considered confidential in a transaction:
23 | PG 23You can also read
