5266 Wallace Road, Atwater APN: 052-200-033”
Aman Dhillon Real Estate Agent
California Real Estate Services 276 Hegenberger Road Suite #300 Oakland, CA 94621 Office: 510.562.2444 Fax: 510.562.2446 Direct: 510.303.1792 [email protected] Property Summary
This sales package provides preliminary information regarding the parcel of land located on 5266 Wallace Road in Atwater,CA. The parcel is located on the north side of Wallace Road adjacent to Atwater, California city limits (city limits currently run along Wallace Road itself). According to tax records, this parcel 052-200-033 (5266 Wallace Rd) is 19 acres in size and is offered at $3.040 million,
Both parcels are currently zoned for agricultural use but are in the city of Atwater’s sphere of influence and general plan with a designation as “Business Park.” Verbal representations from the city and county planning departments have indicated full cooperation with annexing these parcels into city limits and changing the zoning to one that fits within the “Business Park” guidelines. This includes essentially “anything that makes sense that isn’t residential.” Prospective buyers will of course need to independently verify such zoning and development possibilities.
With all of the current and future development slated in this area, these parcels will provide an unmatched commercial development opportunity for the savvy developer. Wallace Roadconnects Santa Fe Ave—a Central Valley east side thoroughfare—with Castle Airport & Aviation Development Center. With several businesses on the site of the decommissioned Castle Air Force Base, Castle Airport is a fully-equipped airport and landing site, the 4th largest on the West Coast. On the northeast side of Castle is a 1200-acre race park development project nearing final completion that will be known as Riverside Motorsports Parkway. Riverside expects to host regular events throughout the year that draw between 2,500 to 50,000 visitors each.
Ten miles to the southeast is the new UC Merced, which opens its doors to students for the first time in September, 2005. UC Merced expects to create a university community of over 30,000 by the time it is fully developed. The City of Atwater (pop. 26,000) is itself undergoing immense growth as well. 1,208 housing units are currently being added within active subdivisions, with over 2,200 more units in approved subdivisions that have not yet begun construction. An additional 120 acres of residential annexations are pending. These housing additions will help increase Atwater’s population to a projected 42,000 by 2030.
The expected population increases in the area, a large airport with available capacity, a new University of California campus just down the road, and new world-class motorsports park facility a couple of miles away combine to unleash an immeasurable demand for commercial services this site is well-positioned to provide. Northern Merced County Regional Map Aerial Photos & Parcel Map
Subject Property in Blue Area Description
Santa Fe Avenue
Santa Fe Avenue, also known as County Route J7, is a major thoroughfare throughout much of the northern San Joaquin valley. Stretching through three counties (San Joaquin, Stanislaus, and Merced), it begins as far north as Stockton and runs southeast roughly parallel and, with only one interruption, runs to the east of CA Highway 99 all the way into Merced.
City of Atwater
The City of Atwater is a fast-growing city along Highway 99 in northern Merced County of central California. It is located approximately 30 miles south of Modesto and 60 miles north of Fresno, within two hours from the Bay Area, Sacramento, and the central California coast. Atwater’s current population is approximately 26,000. A four-mile market radius from central Atwater yields an current estimated population of 48,000. Following an initial population loss immediately following the closure of Castle Air Force Base in 1995, the city has been on a tremendous growth trajectory that has taken it from 20,900 in 1996 to 26,000 in 2003, a 24.4% increase, or 3.19% annually. And it just keeps growing faster: From 2002-2003 the population growth was 7.9%, more than three times the 2.5% growth rate for Merced County during that time. Furthermore, population projections suggest Atwater’spopulation will swell to 42,700 by 2030.
Major employers in Atwater include J.R. Woods Inc. (frozen foods), Cingular Wireless, U.S. Federal Bureau of Prisons, Foster Farms, Atwater Elementary School District, City of Atwater, NCI Building Systems, Anberry Hospital, West Mark, Gallo Farms, and University of California, Merced.
Castle Airport
Formerly known as Castle U.S. Air Force Base, Castle Airport was once the home to the 93rd bombardment wing and was the one and only base for flight training crews for B-52s and KC-135s. Today, as in the past, Castle maintains the 4th longest runway along the West Coast. The airspace is not congested and provides an ideal location for flight testing, pilot training, ground operations, heavy aircraft maintenance or cargo operations. With 352 acres of available ramp space, Castle Airport is the perfect place for aviation development. From Piper Cubs to Boeing 747s, Castle will serve all without the major congestion problems experienced at most major airports today. Additionally, Castle maintains an ILS, on site crash/fire rescue, and Foreign Trade Zone with no noise or operational hours restrictions. The 12,800 foot runway is one of the few airports in California that can accommodate 9 a fully loaded and fueled 747 passenger/cargo jet and reach Asia. This is unlike most other airports’ departing craft, which must re-fuel in Alaska.
Castle Aviation & Development Center
Castle Aviation & Development Center is a vibrant and diverse mix of several businesses and industries that have taken up space in the buildings vacated by Castle Air Force base. A partial list of tenants and businesses includes: • Cingular Wireless • Federal Bureau of Prisons • Merced College • Merced Irrigation District • Pacific Bell • Riverside Motorsports Park • University of California, Merced (administrative offices) • Merced County Business & Development Center • Atlas Storage Group • Castle Medical Group, Castle Family Health, Castle Dental Group • Castle Analytical Laboratory • Castle Science & Technology Center • Challenger Learning Center • Castle Air Force Museum • Forrester Graphics • Gemini Flight Support • Golden State Truck School • Hoffman Electrical Systems • Jacobs Engineering • Merced County Sheriff’s Department • Merced Union High School District • Patelco Credit Union • Sanitec Industries Riverside Motorsports Park
Located on 1200 acres of land adjacent to the northeast of Castle Airport, Riverside Motorsports Park is a proposed racing and recreation facility that is very near final approval (as of the time of this publication). Eucalyptus Avenue bounds the project area to the north and Buhach Road to the west. Fox Road runs through the eastern portion of the site in a northsouth direction. With plans to feature eight different racetracks in one landscaped, fully equipped, park-like setting, Riverside Motorsports Park intends to present a complete package of motorsports events to West Coast race fans and to support club-based and professional motorsports sanctioning organizations across the United States. The project itself includes eight motorsports venues and other motorsports- themed entertainment and recreation-based guest amenities, such as picnic grounds, family and themed restaurants, retail shops, and amusement arcades. In addition, supporting infrastructure of mixed-use light industrial, commercial and retail businesses supplying material, products, and services to the motorsports community, attending motorsports competitors, and attending guests of Riverside Motorsports Park will be provided.
The number one spectator sport in the world, motorsports has become the fastest growing sport in the United States—second to NFL football in total spectator attendance, but exceeding the NFL in per-event attendance. RMP’s plans call for its eight tracks to support virtually every type of world-class professional and amateur motorsports, including:
• 3.0-mile road course for sports cars, endurance and open-wheel racing • 1/4-mile (5,000-foot total length) drag strip • Integrated 1/3- and 1/2-mile, banked paved oval tracks for stock cars and sprint cars • 3/8-mile dirt oval track for motorcycle, stock car, sprint and midget racing • 3/4-mile karting courses (sprint and shifter karts) • Motocross and BMX courses • And, Northern California’s first world-class oval speedway (length: 7/8-mile) for major stock car (e.g. NASCAR) and open-wheel (e.g. FIA Formula One) racing series.
The administrative draft of the Environmental Impact Report for development was completed and submitted to the Merced County Planning Department on July 7, 2005. Merced County, as the lead agency, will initiate a 45-day public review of the EIR after they have completed their internal review. This will be followed by a vote of the Merced County Planning Commission and Board of Supervisors for EIR certification and project approval. Construction is expected to take an additional 18 months, as Riverside officials expect to be up and running in time for the beginning of the racing season in spring 2007.
UC Merced
Located approximately 10 miles to the east of the subject parcels, UC Merced opens in September 2005 as the tenth campus of the renowned University of California system. The Merced site was chosen from among over 80 locations to become the first American research university built in the 21st century, the first University of California campus built in 40 years, and the first ever in the Central Valley of California. UC Merced is expected to grow from an initial enrollment of 1,000 to just over 25,000 students by 2035. Including approximately 5,000 staff members, the University Community is expected to total over 30,000. Needless to say, this will provide an enormous economic stimulus to the region.
UC Merced Economic Impact
The Merced County Economic Development Corporation estimates that new staff income and its corresponding multiplier effect will add over $80 million of new net annual income by 2010. Student expenditures are estimated to total $148.5 million annually. Including direct University expenditures, UC Merced may contribute $300 million annually, or 5% of the total economic activity of the greater Merced region. Permanent full-time staff are expected to boost demand for single-family homes in the area, while student housing projections will increase demand for multi- family housing by 200 new units per year.
Developmental Potential
This parcel has several good uses including:
Warehousing/Shipping Facility This makes good use of nearby railway, highway, and especially airport access.
Retail There are currently no retail shopping options in Atwater, north of Bellevue Road. With northeast Atwater area approved subdivisions totaling over 1100 housing units, the currentdemand for retail shopping off Santa Fe will only become much more urgent.
Mini-Storage Facility Most of the 1100 new housing units going into north and east Atwater are either senior housing/rental units and high end single-family homes, both of whose owners are perfect target markets for mini-storage facilities. Currently there are only four small self-service storage locations, all of which are located in the southeast part of town. There is currently nothing to cater to the storage needs of the upper-end client or to the north and east parts of town.
Hospitality/Lodging
The area is clearly in dire need of quality lodging options. UC Merced is only approx. 10 miles to the southeast, the Riverside Motorsports Park (currently very near final approval as of the time of this publication) is less than 2 miles away, and Castle Airport is just up the street. Nevertheless, Atwater does not have a single hotel or motel of any significance. Even Merced has very little to offer considering its’ size and future growth. This site presents a near-perfect opportunity to be the first of what will eventually be several hotels and motels in the area.
Other Options These include manufacturing, medical/dental or office/professional space, automobile dealership, and more. In fact, the highest and best use for these 40 acres is likely to be a mixture of several of the above suggestions. For example, why not combine a hotel, retail establishments including restaurants, a high-end mini-storage and a medium-sized shipping facility in the same mixed-use area? Certainly the flexibility of the site cannot be beat. Remember, the city has so far indicated that they are very open to anything non-residential that makes sense.
Further Information Please visit the following websites for more information about the region and its many opportunities:
Atwater
City of Atwater www.atwater.org Atwater Chamber of Commerce www.atwater- chamber.com Atwater City Maps www.atwater.org/index.cfm? page=775180 Atwater General Plan www.atwater.org/index.cfm? page=1320197
Merced County
County of Merced www.co.merced.ca.us Merced County Assoc. of Governments www.mcag.cog.ca.us Merced County Economic Development Corporation www.mcedco.com Merced County Economic Development Strategic Planning Project www.mcedco.com/peopleplacesprosp.pdf Merced County Chamber of Commerce www.mercedcountychamber.com
Miscellaneous
Castle Airport Aviation & Development Center www.castleairport.com www.castleabc.com www.castleairport.merced.ca.us www.elite.net/castle-air www.abc.merced.ca.us
UC Merced www.ucmerced.edu www.ucmercedplanning.net Riverside Motorsports Park www.rmpracing.com Yosemite National Park www.yosemitepark.com
SUBDIVISION ACTIVITY